Agenda item

Consideration was given to a report presented by the Finance Manager, Neighbourhood and Adult Services, on the Housing Revenue Account which was forecasting an outturn on budget with a transfer to working balances (HRA reserves) of £4.524M, an increase of £2.686M above the approved budget.

Appendix A of the report submitted illustrated that the forecast year end spend on Repairs and Maintenance was an underspend of £865,000 compared to budget.  Under the review of the 2011/12 Cost Collection workbook, part of the Repairs and Maintenance contract, both contractors had had their Price per Property reduced generating a net saving of £865,000.  Every endeavour had been made to spend the savings, however, due to them not having been identified until late in the current financial year, further additional works could not be delivered.  The savings would be carried forward into 2013/14 to address repairs and maintenance items.

It was difficult to forecast the Empty Homes budget given the responsive nature of the Service.  The original budget was based on an estimated 1,600 minor voids in year; the actual number of voids to the end of February, 2013, was 133 below the budgeted sum.  However, it was a responsive budget and close monitoring was ongoing.  Alterative works were being prepared which could be released at short notice to take up savings on this head of account.

A bad weather contingency of £200,000 was also in place and would be reviewed on an ongoing basis.

It was noted that the total expenditure within Supervision and Management was forecast to underspend by £411,000.  The main variance was a forecast overspend of £571,000 to purchase additional furniture within the Furnished Homes Service but was offset by increased income from additional charges generated by more take up of the Service.  The scheme currently had 2,646 customers, an increase of 729 since the beginning of the year.

The increase in spend on additional furniture had been offset by savings within Supervision and Management, together with salary savings due to vacancies and underspends on non-pay budgets, which had resulted in an overall net underspend of £411,000.

There were also forecast underspends within Rent, Rates and Taxes budget in respect of lower Council Tax charges on void properties and the provision for the final Housing subsidy claim had now been signed off by the external auditor and was slightly higher than forecast resulting in an one-off saving of £157,000 transferred to HRA reserves.

Dwelling rental income was projecting a slight over recovery of £478,000 due to an improvement in void turnaround rates, however, non-dwelling rents were forecast to under recover against budget by £36,000 due to garage voids. A programme of repair had been started in an effort to reduce the numbers of garages which were void.

Income from charges for services and facilities were forecasting an outturn of £4.256M, an over recovery of income of £771,000. This was mainly due to additional income as a result of the Furnished Homes Scheme continued growth offsetting the increase in expenditure reported above.

The report provided further details of:-

-        Budget Operating Statement (Appendix A).

-        Income and expenditure charged to the HRA.

-        Projected outturn based upon activity to the end of February, 2013 (Appendix A, Column B).

-        Repairs and Maintenance.

-        Supervision and Management.

-        Income.

The report identified the need for additional investment in planned maintenance over the next few years and the potential financial risk associated with planned welfare reforms. Both of which may require investment from reserves.

Discussion ensued on the number of voids to the end of February, 2013 and not January as stated, growth in the Furnished Homes Scheme, impact on the working balance as a result of welfare reform, management and mitigation of risk arising from non-payments and the need for the position to be closely monitored.

It was also requested that relevant Ward Members be informed of the garage investment programme and work schedule.

Resolved:-  (1)  That the report be noted.

(2)  That relevant information on voids be made available to Ward Members.