Item 12 Appendix 2
West Dunbartonshire Council · 30 October 2024
Back to West Dunbartonshire Council — 30 October 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 APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 August 2023 PERIOD 5 Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Employee Costs 7,661 7,283 (378) -5% Main Issues Mitigating Action Anticipated Outcome Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Other Expenditure 330 560 230 70% Main Issues Mitigating Action Anticipated Outcome Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Repairs & Maintenance 15,208 13,393 (1,815) -12% Main Issues Mitigating Action Anticipated Outcome Variance Analysis Subjective Analysis Forecast Variance 2024/25 RAG Status 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. 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 A high volume of repair orders and ongoing inflationary pressures are driving up costs, with the most significant pressures across responsive repair and void repair budgets. A year end underspend A rent abatement overspend of £100k 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 circa £250,000 less than the 2023/2024 spend. A year end overspend. Forecast Variance 2024/25 Subjective Description Rent abatements, support for young tenants, legal and banking expenses, and other sundry costs. Variance Narrative Subjective Analysis RAG Status Housing Operations and Building Service will continue to place the strictest controls over the abatement process to minimise this spend. Variance Analysis Variance Analysis Forecast Variance 2024/25 Subjective Description Subjective Analysis RAG Status 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.
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2024/25 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 August 2023 PERIOD 5 Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Void Loss (Council Tax / Lost Rents) 1,109 1,282 173 16% Main Issues Mitigating Action Anticipated Outcome Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Loan Charges 22,092 26,041 3,949 18% Main Issues Mitigating Action Anticipated Outcome Variance Analysis Subjective Analysis Forecast Variance 2024/25 RAG Status The Council will continue to actively manage its external / internal borrowing to ensure that it minimises borrowing costs. Subjective Description Loans Fund repayments and the payment of interest and expenses on outstanding HRA debt. 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 were originally expected to fall over the course of this year, we now expect rates to remain high for the remainder of ths financial year. A year end overspend. Variance Analysis Forecast Variance 2024/25 Variance Narrative Subjective Analysis RAG Status 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. Subjective Description Lost rental income for void houses and lockups and the cost of council tax on long term void properties