Agenda item

Consideration was given to a report presented by the Director of Housing and Neighbourhoods on the Housing Revenue Account which was forecasting an outturn on budget with a transfer to working balances (HRA reserves) of £1.912M, a reduction of £6879,000 against the approved budget.

Appendix A of the report provided the Budget Operating Statement for 2013/14 showing the various income and expenditure budget lines which made up the net cost of delivering the Service.  The latest forecast net cost of Service was £6.302M, together with Revenue contribution to Capital costs and interest received, would result in an overall deficit of £1.912k to be transferred from Working Balances.

Expenditure

Based upon expenditure and commitments to date, total expenditure was forecast to outturn at £72.858M compared to a budget provision of £73.090M, a decrease in spend of £232K.  The main variations were:-

Contributions to Housing Repairs

-          Repairs and Maintenance – currently forecasting to budget at £17.996M.   The Empty Homes budget was difficult to forecast and had been set at an estimated 1,500 minor voids a year.  At the end of Quarter 2 there had been 123 more completions than budgeted due to an increase in the number of evictions and the impact of the Welfare Reform as more tenants requested a transfer to smaller properties

-          There was an overall forecast overspend on cyclical works mainly around fixed wire testing and gas servicing together with an increase in responsive repairs

-          Offset by forecast underspends within Planned Works budget

Supervision and Management

-          Forecast to outturn at £20.033M, overall overspend of £32k due to lower than expected staff turnover and slippage on implementing the review of structures across a number of teams.  There had also been a transfer to the Furnished Homes reserve due to additional income as more clients used the Scheme

Income

-          Total forecast income collectable was £79.358M, an increase of £455k above budget of £78,903M

-          Dwelling rental income was projected to over-recover by £85k after allowing for 2% loss of income

-          Non-dwelling rents were also forecast to slightly over-recover against budget by £6k due to additional income from garage sites

-          Income from charges for services and facilities were forecasting an outturn of £3.883M, an over-recovery of £281k mainly due to additional income on Furnished Homes as a result of an increase in the number of clients.  However, there was a forecast under-recovery of income from clients using Sheltered Neighbourhood Centres services as tenants opted out of the laundry charge and more than the anticipated level of voids on District Heating Schemes resulting in a slight under-recovery of income

-          Other fees and charges were forecasting an over-recovery of income of £82k related to additional unbudgeted income in respect of the sale of tenants contents insurance, recovery of court costs and income from utility companies for the use of solar panels

Discussion ensued with the following issues raised/clarified:-

-          Void turnround times and the condition of properties

-          Lettings Policy

Resolved:-  That the latest financial projection against budget for 2013/14 be noted.