|
|
2020-21 |
Budget Changes |
2021-22 |
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|
Adjusted budget |
Inflation |
Savings |
Investment & Re-investments |
Other Changes |
Original Budget |
|
Note |
|
1 |
2 |
3 |
4 |
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
SUBJECTIVE ANALYSIS |
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|
|
|
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|
Expenditure |
|
|
|
|
||
|
Employees (data a) |
15,841 |
125 |
0 |
1,170 |
55 |
17,191 |
|
Premises - Repairs |
4,414 |
36 |
0 |
0 |
0 |
4,450 |
|
Premises - Other |
2,830 |
21 |
0 |
0 |
0 |
2,851 |
|
Transport |
953 |
7 |
0 |
0 |
0 |
960 |
|
Contribution to Bad Debt Provision |
609 |
5 |
0 |
0 |
0 |
614 |
|
Supplies & Services |
3,248 |
23 |
0 |
150 |
0 |
3,421 |
|
Support Services (data b) |
3,999 |
23 |
0 |
0 |
316 |
4,338 |
|
Third Party Payments |
144 |
3 |
0 |
0 |
16 |
163 |
|
Direct Revenue Funding |
24,123 |
0 |
0 |
0 |
(2,623) |
21,500 |
|
Capital Financing Costs |
6,197 |
0 |
0 |
0 |
(112) |
6,085 |
|
Total Expenditure |
62,358 |
243 |
0 |
1,320 |
(2,348) |
61,573 |
|
Income |
|
|
|
|
||
|
Rents Dwellings |
(51,716) |
(772) |
0 |
0 |
(810) |
(53,298) |
|
Rents Car Parking / Garages |
(954) |
(19) |
0 |
0 |
0 |
(973) |
|
Commercial Rents |
(620) |
0 |
0 |
0 |
0 |
(620) |
|
Service Charges |
(8,635) |
(6) |
0 |
0 |
2,438 |
(6,203) |
|
Other Recharges & Income |
(433) |
(6) |
0 |
0 |
0 |
(439) |
|
Contribution from Useable Revenue Reserves |
0 |
0 |
0 |
0 |
(40) |
(40) |
|
Total Income |
(62,358) |
(803) |
0 |
0 |
1,588 |
(61,573) |
|
DEFICIT / (SURPLUS) |
0 |
(560) |
0 |
1,320 |
(760) |
(0) |
|
OBJECTIVE ANALYSIS |
|
|
|
|
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|
Housing Management & Support |
4,155 |
15 |
0 |
50 |
(142) |
4,078 |
|
Income, Inclusion & Improvement |
(46,905) |
(712) |
0 |
0 |
(464) |
(48,081) |
|
Tenancy Services |
2,700 |
7 |
0 |
0 |
(132) |
2,575 |
|
Property & Investment |
(729) |
44 |
0 |
263 |
2,889 |
2,467 |
|
Repairs & Maintenance |
9,905 |
79 |
0 |
1,007 |
(213) |
10,778 |
|
Head of Regeneration |
554 |
7 |
0 |
0 |
77 |
638 |
|
Capital Financing |
30,320 |
0 |
0 |
0 |
(2,775) |
27,545 |
|
DEFICIT / (SURPLUS) |
0 |
(560) |
0 |
1,320 |
(760) |
(0) |
Note 1 Inflation:
Inflation of 0.75% has been applied to Direct Employees, and 1% to Premises, Transport and Supplies & Services. Adjustments are made to specific areas based on known inflation above or below the standard 1% applied. Most income budgets are zero-based (that is they are recalculated each year rather than changing incrementally) and therefore budgets are estimated based on known increases in costs or inflation.
Note 2 Savings:
There are no savings in the budget for 2021/22 due to the nature of the new Repairs & Maintenance Service and the level of uncertainty over costs.
Note 3 Service Pressures and Priority Areas for Investment:
|
Service Pressures and priority areas for investment |
£’000 |
|
Increase in the number of staff joining the BHCC Pension scheme and the actual cost of staff allowances, compared to the budget assumptions for 2020/21. |
350 |
|
Increase in staffing budget to reflect the establishment costs of the in-house Repairs and Maintenance Service. This reflects an increase in overall staff numbers of 4.71FTE |
220 |
|
Investment for an additional year for the Transition team to continue to assist with the continued implementation of the in house Repairs and Maintenance Service |
437 |
|
Investment for an additional 1.81 fte in Property & Investment to ensure compliance with draft Building Safety Bill. |
113 |
|
A net investment of an additional 2 fte to work on sustainability and energy improvement initiatives. |
50 |
|
Increased provision for compensation costs relating to disrepair claims |
75 |
|
One year external consultation costs to assist with the implementation of the new Building Safety policy |
50 |
|
One year investment for consultancy work in relation to implementing sustainability measures across Housing |
25 |
|
Total Service Pressures and priority areas for investment |
1,320 |
Note 4 Other Changes:
|
Other Changes |
£’000 |
|
Additional superannuation costs to support the in-house service |
55 |
|
Other changes to Supplies and Services and Third Party payments |
16 |
|
Increase in Support Service Charges |
316 |
|
Change to Direct Revenue Funding |
(2,623) |
|
Net decrease in capital financing costs |
(112) |
|
Net increase in rental income from the new home’s rents |
(810) |
|
Net increase in Service charge income from council tenants |
(215) |
|
Net decrease in Leaseholder Service Charge income |
2,653 |
|
Contribution from General Reserves |
(40) |
|
Total Other Changes |
(760) |
Note 5 Projected Reserves:
|
Item |
Estimated Balance as at 01/04/21 £'000 |
Planned Use 2021/22 £'000 |
Estimated Balance as at 31/03/22 £'000 |
Review Arrangements |
Conclusion |
|
HRA Reserves |
|
|
|
|
|
|
HRA Working Balance |
(3,000) |
|
(3,000) |
Following closure of accounts. |
A minimum working balance of £3m is recommended by the Chief Finance Officer in accordance with the requirements of Section 25 of the Local Government Act 2003. |
|
HRA General Reserves |
(5,466) |
190 |
(5,276) |
Following closure of accounts. |
Any residual balance is to pay for any extra H&S costs post Grenfell and risk around new repairs service and Harmonisation. |
|
Capital Reserves |
(2,900) |
2,900 |
|
Following closure of accounts. |
|
|
Repairs & Maintenance |
(440) |
440 |
|
Following closure of accounts. |
Earmarked for costs incurred during 2021/22. |
|
Rent Reduction Reserve |
(910) |
910 |
|
Following closure of accounts. |
Earmarked to fund acquisitions in order to reduce the rents on eligible properties during 2021/22. |
|
Setup Mobilisation Housing Repairs Cont. Reserve |
|
|
|
Following closure of accounts. |
|
|
EDB Reserves |
(240) |
|
(240) |
Following closure of accounts. |
Earmarked to support the revenue budget of £0.247m bringing the total available for EDB to £0.487m. |
|
HRA - Renewable Energy Projects |
(175) |
|
(175) |
Following closure of accounts. |
|
|
Sustainability and retrofit reserve |
(4,010) |
|
(4,010) |
Following closure of accounts. |
Earmarked for costs in future years for sustainability measures and retrofit works required on Housing stock. |
|
|
(17,141) |
4,440 |
(12,701) |
|
|
Data Table A - Employee Full Time Equivalent (FTE) Reconciliation
The table below includes FTE numbers for the proposed service pressures.
|
Employee Full Time Equivalents (FTE) (Table Data A) |
FTE |
|
Original FTE 2020/21 |
487.75 |
|
Changes for 2020/21: |
|
|
Property & Investment structure changes 2020/21 |
(0.50) |
|
Adjusted FTE |
487.25 |
|
Service Pressures: |
|
|
Additional staff to support the Repairs & Maintenance of the housing stock |
4.71 |
|
Additional P&I Staff |
3.81 |
|
2021/22 FTE |
495.77 |
Data Table B - Support Service and Other Charges Analysis
The table below provides a breakdown of the support service charges for 2021/22 and compares this to 2020/21.
|
Charging Service |
Adjusted Budget 2020/21 £'000 |
Budget
2021/22 |
|
Support Functions: |
|
|
|
Insurance Costs |
837 |
963 |
|
ICT |
878 |
921 |
|
Finance |
280 |
308 |
|
Legal |
270 |
324 |
|
Democratic |
243 |
243 |
|
Human Resources |
325 |
320 |
|
Property |
198 |
158 |
|
Tenancy Fraud |
64 |
65 |
|
Procurement |
59 |
130 |
|
Business Operations |
51 |
57 |
|
Communications |
25 |
25 |
|
Director |
61 |
61 |
|
Other charges: |
|
|
|
Youth Service |
250 |
255 |
|
Discretionary Community Grants |
145 |
148 |
|
Disabled Adaptations |
120 |
122 |
|
Field Officer support |
50 |
52 |
|
Family Coach funding |
- |
- |
|
Apprenticeship Levy |
31 |
31 |
|
Homing in and Area Panels |
30 |
30 |
|
Energy Efficiency Support |
26 |
28 |
|
Pest Control Services |
40 |
41 |
|
Noise Pollution |
16 |
16 |
|
Adult Learning |
- |
40 |
|
Total |
3,999 |
4,338 |