2020-21

 Budget Changes

 2021-22

 

 Adjusted budget

 Inflation

 Savings

 Investment & Re-investments

 Other Changes

 Original Budget

Note

 

1

2

3

4

 

 

 £'000

 £'000

 £'000

 £'000

 £'000

 £'000

 SUBJECTIVE ANALYSIS

 

 

 

 

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

 

 

 

 

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 4 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
£'000

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