Issue - meetings

To consider the report of the Chief Finance Officer.

People Scrutiny Committee and Corporate Services Scrutiny Committee considered the report at their meetings on 5 September and 26 September 2019 and their comments will be reported. (The appendices were previously circulated to the Scrutiny Committees on the above dates and can be accessed by clicking the above link).

The Executive considered a report, which had already been presented to People Scrutiny Committee on 5 September 2019 (Min. No. 32 refers) and to Corporate Services Scrutiny Committee on 26 September 2019 (Min. No. 34 refers). The report advised Members of the overall financial position of the HRA Revenue and Capital Budgets for the 2019/20 financial year after three months.

Particular reference was made to the revenue position and HRA Capital Programme which were on target for the first quarter. The only significant variances were the increase to the capital charges and that money had been set aside for spending as Capital expenditure for enhancing existing properties. There was an additional request for tree planting, following the appointment of a tree officer in the HRA and work was being undertaken with public realm to action this.

RECOMMENDED that Council approve:-

(1)  The HRA forecast financial position for 2019/20 financial year;

(2)  The revision of the HRA Capital Programme to reflect the reported variations detailed in Appendix 4 of the report presented to the meeting; and

(3)  The HRA Budget recognise the importance of re-planting trees and an allocation for tree planting be included in the budget.

To consider the report of the Chief Finance Officer.

The Chief Finance Officer presented the Housing Revenue Account (HRA) Budget Monitoring report which advised Members of the overall financial position for the 2019/20 financial year after three months. The report provided an overview of the budgetary over/under-spends reported to the Corporate Services Scrutiny Committee and highlighted areas of risk, and budgets that were vulnerable to factors beyond Council control.

Members were informed of the HRA records expenditure and income relating to council dwellings and the provision of services to tenants. During this period, the total budget variances showed that there would be a net deficit of £1,453,485 in 2019/20, which represented a movement of £117,070 compared to the revised budgeted deficit of £1,336,415 for 2019/20.

The Chief Finance Officer commented on depreciation charges and how they related to valuation and maintenance of properties. Each year, the charge depreciated against the properties and impacted HRA funding as Council houses did not have the same accountancy value as the private sector. He confirmed that there were no projected variances reported at the end of the first Quarter.

In response to questions from Members, the Chief Finance Officer explained:-

·         The £105,000 sundry land maintenance tree inspector figure, did not include re-planting of trees. An additional budget was being setup for replanting of trees in the city and to potentially capitalising trees as an asset;

·         The surrendering back to Ministry of Housing, Communities & Local Government (MHCLG) related to selling right to buy houses, of which 75% of the Capital receipts were given back to Central Government, when the Council was unable to spend them in line with the regulations and equates to £2.5million;

·         Zebcat was a European Union (EU) funded energy efficiency project for retrofitting older homes. EU projects had a detailed claiming system and was being checked, but additional information on the project would be provided to Members.

Councillor Moore moved and was seconded by Councillor Hannaford to add an additional recommendation for the HRA Budget to recognise the importance of re-planting trees and an allocation for tree planting to be included in the budget, and was voted for unanimously.

Corporate Services Scrutiny Committee noted the report and requested Executive and Council to note and approve:-

(1)  The HRA forecast financial position for 2019/20 financial year; and

(2)  The revision of the HRA Capital Programme to reflect the reported variations detailed in Appendix 4; and

(3)  The HRA Budget to recognise the importance of re-planting trees and an allocation for tree planting be included in the budget;