Item 17 - Appendices 1 and 2
West Dunbartonshire Council · 21 August 2024
Back to Housing & Communities Committee — 21 August 2024 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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WEST DUNBARTONSHIRE COUNCIL HRA REVENUE BUDGETARY CONTROL 2024/25 PERIOD END DATE Budget 2024/25 Spend to Date 2024/25 Forecast Spend 2024/25 Annual RAG Status £000 £000 £000 £000 % Employee Costs 7,649 1,669 7,249 (400) -5% Property Costs 2,600 650 2,600 0 0% Transport Costs 148 40 161 13 0% Supplies, Services And Admin 418 103 411 (7) -2% Support Services 2,788 696 2,785 (3) 0% Other Expenditure 330 160 398 68 21% Repairs & Maintenance 15,208 3,026 13,169 (2,039) -13% Bad Debt Provision 876 219 876 0 0% Void Loss (Council Tax / Lost Rents) 1,109 364 1,206 97 9% Loan Charges 22,092 6,111 24,445 2,353 11% Total Expenditure 53,218 13,038 53,300 82 0% House Rents (51,049) (13,028) (51,049) 0 0% Lockup Rents (215) (54) (215) 0 0% Factoring/Insurance Charges (1,555) (389) (1,555) 0 0% Other rents (130) (33) (130) 0 0% Interest on Revenue Balance (146) (37) (146) 0 0% Miscellaneous income (123) (31) (123) 0 0% Transfer to / from Reserves 0 0 0 0 0% Total Income (53,218) (13,572) (53,218) 0 0% Net Expenditure 0 (534) 82 82 30 June 2024 Subjective Summary Forecast Variance 2024/25 ITEM 17 - APPENDIX 1
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WEST DUNBARTONSHIRE COUNCIL HRA REVENUE BUDGETARY CONTROL 2023/24 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 30 June 2024 PERIOD 3 Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Employee Costs 7,649 7,249 (400) -5% Main Issues Mitigating Action Anticipated Outcome Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Other Expenditure 330 398 68 21% Main Issues Mitigating Action Anticipated Outcome Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Repairs & Maintenance 15,208 13,169 (2,039) -13% Main Issues Mitigating Action Anticipated Outcome Variance Analysis Variance Analysis Subjective Analysis Forecast Variance 2024/25 RAG Status Subjective Description Cost of employees charged directly to the HRA. Variance Narrative An employee cost underspend is anticipated as management target staffing efficiencies, including tighter controls on staff recruitment and overtime. None required. A year end underspend. Subjective Analysis Forecast Variance 2024/25 RAG Status Subjective Analysis Forecast Variance 2024/25 RAG Status Subjective Description Rent abatements, support for young tenants, legal and banking expenses, and other sundry costs. Variance Narrative A rent abatement overspend of £50k is forecast because demand is exceeding the new reduced abatement budget. It is worth noting that the 2024/2025 rent abatement spend is forecast to be more than £300,000 less than the 2023/2024 spend. Housing Operations and Building Service will continue to place the strictest controls over the abatement process to minimise this spend. A year end overspend. Variance Analysis Subjective Description Responsive and planned repair and maintenance services to houses and lockups and income recovered from tenant rechargeable and owner occupier repairs. Variance Narrative Officers have reviewed the repairs spend and identified a potential saving against the 2024/2025 repair and maintenance budget by transferring spend charged to revenue to the capital programme. A review of specific workstreams identified revenue funded works that extend the lifespan of the assets. Specifically work carried out in void properties to bring these back to relet standard are significant and include component renewals. Furthermore, the completion of an Electrical Installation Condition Report (EICR) is complementary to the environmental sensor installation programme. None required A year end underspend. ITEM 17 - APPENDIX 2
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2023/24 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 30 June 2024 PERIOD 3 Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Void Loss (Council Tax / Lost Rents) 1,109 1,206 97 9% Main Issues Mitigating Action Anticipated Outcome Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Loan Charges 22,092 24,445 2,353 11% Main Issues Mitigating Action Anticipated Outcome Lost rental income for void houses and lockups and the cost of council tax on long term void properties Variance Analysis Subjective Analysis Forecast Variance 2024/25 RAG Status Subjective Description Local authority borrowing costs for medium / long term Public Works Loan Board (PWLB) debt and short term debt have remained high. The higher interest rates are driving up HRA debt financing costs. The HRA budget assumed that borrowing rates would reduce in 2024/2025. Whilst Interest rates are expected to fall in the second half of this financial year, we expect 2024/2025 borrowing rates to be significantly higher than budgeted. The Council will continue to actively manage its external / internal borrowing to ensure that borrowing costs are minimised A year end overspend. Variance Narrative Variance Narrative Council tax payments for longer term void houses are forecast to exceed budget. There is limited progress being made with utility companies as council staff try and resolve debt on meters and meter reconnections. The poor performance of the utility companies adversely impacts on the length of time properties are void and leads to more empty properties incurring a council tax liability. Housing staff will continue to engage with utility companies to highlight meter issues that are preventing properties being available for let. Housing and Building Services staff will continue to prioritise the repair and subsequent allocation of longer term void properties. A year end overspend. Variance Analysis Subjective Analysis Forecast Variance 2024/25 RAG Status Subjective Description Loans Fund repayments and the payment of interest and expenses on outstanding HRA debt.