Decision details

152.1       The Executive considered and noted the report reviewing the 2016/17 budget for the General Fund and Housing Revenue Account against the forecast to 31 March 2017 and

 

                 RESOLVED to approve

 

1.      the rescheduling of £40,000 for the Replacement of the Property Terrier Database system into 2017/18;

 

2.      the rescheduling of £20,000 for the Call Management System Technology into 2017/18;

 

3.      a virement of £50,000 from the Void repairs budget, a virement of £60,000 from the Cyclical repairs budget and a virement of £140,000 from the Redecoration budget into the Responsive repairs budget;

 

4.      the rescheduling of £80,000 for Communal & Estate works into 2017/18;

 

5.      the rescheduling of £20,000 of the Professional Fees & Miscellaneous budget into 2017/18;

 

6.      Officers applying for Planning permission to undertake window replacement works at Hillcroft, Shepherds Hill, Halsmere.

 

152.2       A summary of progress against revenue budget for the HRA is given in the table below. The HRA contains the day to day running cost of managing the Housing Service such as staff costs and repairs, contributions to the capital programmes and financing costs.The forecast outturn on the HRA is £93,000 overspend against budget and represents less than 0.6% of the net HRA budget of £13.6m. This is detailed in the table below.

 

 

152.3       The interest on investments has been positive so far and the expectation is that the budget will be exceeded by at least £30,000.

 

       i.       Responsive Repairs budget continues to come under considerable pressure this year with a potential projected overspend of £250,000. The budget is demand led and the pressure comes from a combination of additional orders from tenants as well as responding to new requests for repairs in a much more timely way. Given this pressure and the need to contain expenditure within overall budgets, officers have been actively refocusing expenditure on the highest priority repair activities while at the same time creating capacity in other non-urgent revenue and capital maintenance budgets during the year to offset this pressure.

 

      ii.       The void, cyclical repairs and redecoration budgets now forecast an underspend of £50,000, £60,000 and £140,000 respectively. This is partially due to reduced void properties in December, and reduced spend due to additional controls on costs being put into place. It is therefore requested that £250,000 from these budgets is vired to the responsive repairs budget to ensure repairs can continue to be carried out where required.

 

    iii.       Executive approval is sought to apply for Planning permission to undertake window replacement and associated works at Nos 5-12 Hillcroft, Shepherds Hill, Haslemere. GU27 2JL

 

152.4             As previously reported there has been less take up than planned for the EasyMove service. There is an allowance of £40,000 in the budget for EasyMove grant payments to enable residents to move into smaller, more suitable, homes. A saving of £10,000 has been previously forecast and a further £10,000 saving is estimated this financial year.

 

152.5             The total capital programme approved budget for 2016/17 is made up as follows:

 

 

152.6                          The table below summarises current performance to date:

 

152.7       Demand pressures on the Responsive Repairs and Voids budgets as outlined above, and the likely impact of the Housing and Planning Act, will bring about significant reductions in funding available to the Council for future capital investment.  As a result, officers have sought opportunities to scale back requirements for capital spending in-year in all but the most essential areas.  At the same time work has taken place during the year to identify Housing Revenue Account property and land assets that are no longer economic to maintain and have been or are in the process of disposal.  The capital receipts from the sale of these assets will provide an additional source of capital funding that can be reinvested back into the housing service in future years.  

 

                 Kitchens & Bathrooms

 

152.8       The focus on repairing rather than replacing Kitchens & Bathrooms in         voids will result in savings estimated to reach £390,000, of which             £120,000 is against bathrooms and £270,000 against kitchens.

 

                 Windows & Doors

 

 i.             Replacement windows at Hillcroft, Haslemere – It is requested that £70,000 of the Hillcroft windows budget is rescheduled into 2017/18 due to delays in delivering the project this year. Due to the type of property, bespoke designs have been drawn up and Waverley Borough Council have a requirement to gain planning permission before works begin.

 

ii.             Windows & Door Replacement – Due to contract and mobilisation delays this work will not be complete in 2016/17. It is therefore requested that £220,000 of the windows & doors budget is rescheduled into 2017/18 to enable the planned works to be completed.

 

                 Structural & Damp work

 

152.9       Sound Insulation – Access issues to a single property has delayed these works and due to ongoing difficulties gaining access it is expected that these works will not be carried out. Therefore there is a forecast saving of £21,000 on this budget.

 

                 Health & Safety

 

       i.       Asbestos Removal – Asbestos removal has been progressing throughout the year as works have been required, however it is forecast that the full budget will not be spent by year end. It is therefore requested that £40,000 is rescheduled into 2017/18 to enable further works to be carried out next year.

 

      ii.       Fire Risk Assessment - Due to access issues being experienced to carry out fire risk assessments it is requested that £153,000 is rescheduled to 2017/18 to enable further assessments to be carried out.

 

    iii.       Fire walls – No further spend is expected on this work stream this financial year therefore it is requested that the remaining £15,000 budget is rescheduled into 2017/18 to enable works to continue.

 

                 Building Services

 

       i.       Communal gas heating replacement – Due to the need to retender these works the delivery has been delayed and the contractor is not yet on site. Therefore it is requested that £500,000 of this budget is rescheduled into 2017/18 to enable the works to be completed.

 

      ii.       Domestic heating upgrade – Due to access issues being experienced to upgrade heating to some properties it is requested that £250,000 is rescheduled to 2017/18 to enable completion of the planned upgrades.

 

    iii.       Electrical upgrade - Due to access issues being experienced to carry out electrical upgrades to some properties it is requested that £50,000 is rescheduled to 2017/18 to enable completion of the planned upgrades.

 

                 Communal & Estate work

 

    i.          Car Parking schemes – In order to enable the completion of a major parking scheme in 2017/18 it is requested that £50,000 of the car parking budget is rescheduled into the next financial year.

 

   ii.          Community Rooms – Consultation and negotiations are currently underway to enable a number of community rooms to be leased to third parties. Until this is completed works are unable to go ahead, therefore it is requested that £30,000 of this budget is rescheduled into the next financial year when it is hoped required works can be carried out.

 

 iii.          Estate works  - In addition to the previously reported saving, a further saving of £20,000 are forecast to be achieved on this budget.

 

                 Professional fees & Miscellaneous

 

    i.          Professional fees – To enable delivery of schemes in 2017/18 it is requested that £20,000 of the professional fees budget is rescheduled into the next financial year.

 

   ii.          Renovation of pre-1945 council dwellings – In addition to the previously reported saving, a further £16,000 saving will be achieved this financial year.

 

152.10      The total stock remodelling capital programme approved budget for 2016/17 is made up as follows:

 

152.11      The New Build capital programme approved budget for 2016/17 is made up as follows:

 

152.12      The Weyhill project is pending decision on delivery method therefore the budget provision will not be spent this financial year. Therefore it is requested that the full £700,000 budget is rescheduled into 2017/18 to ensure sufficient budget is available to enable this scheme in the next financial year.

 

152.13      The Executive now

 

RECOMMENDS that

 

124.      the rescheduling of £290,000 for Windows & Doors into 2017/18 be approved;

 

125.      the rescheduling of £205,000 for Health & Safety into 2017/18 be approved;

 

126.      the rescheduling of £800,000 for Building Services into 2017/18 be approved; and

 

127.      the rescheduling of £700,000 for Weyhill, Haslemere into 2017/18 be approved.

 

[Reason: To provides a review of the 2016/17 budget for the General Fund and the Housing Revenue Account against the forecast to 31 March 2017]