Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
Kevin Jones – Interim Strategic Director, presented the report to Members and explained how the Housing Revenue Account Financial Plan (HRA) had been updated to adapt to the evolving needs and demands and to reflect legislative, financial and technological changes. The HRA Financial Plan included an outline for the new homes in Mid Suffolk District Council and the financial changes brought about by the Government.
It was pointed out to Members that the Model used in the HRA Financial Plan was from the Chartered Institute of Housing and that the Chartered Institute had been involved in the process to ensure consistency. The assumptions in the report had also been reviewed.
The review had led to changes to the Babergh Mid Suffolk Building Services (BMBS), as it had previously been considered viable that the service would make a surplus after two years. However, it was now predicted that this process would take four to five years.
The position of the HRA Business Plans in relation to the Debt Cap imposed by the Government, was up to ten years and the reduction of the Capital working programme was explained to members.
Councillor Rachel Eburne said that the Summery of HRA Efficiency Gains Plan, page 53, had performed better than the estimated £300,000.
In response to question of the current debt of 86.6 Million, Members were reminded that in 2012 Mid Suffolk District Council had taken on their share of debt of 50 Million which was added to the already existing debt of 20 million. The debt was in effect the ‘Mortgage’ of owing the housing stock in Mid Suffolk District.
Members inquired if it was possible to borrowing from the General Fund to increase the HRA and it was clarified that this would be difficult, but could be achieved by buying services. The Interim Strategic Director pointed out to Members that the current HRA Financial Plan concentrated on improving the HRA Budget to accommodate the debt cap.
Members questioned Officers on the BMBS and if it would be better to outsource the services. Officers said that contracted services often had constraints and that in-house services provided better service and other benefits to the tenants. The current plans for BMBS had taken into consideration start-up, training, and staffing and as a result the estimated profit period had been extended to four years.
The cost of running the BMBS was high for this kind of organisation and as indicated on page 55, bullet point 2 early considerations would be given to reduce this. It had been difficult to monitor similar services in the past but the BMBS had a new Corporate Manager and he would be responsible for the BMBS budget, timings, and performance monitoring. The Summery Improvement Plan on page 60, indicated that BMBS had the potential for the biggest savings
Generally, the Summery Improvement Plan had identified the worst cases to enable the HRA Business plan to identify the potentially best areas for improvements.
The turnaround time for Voids were discussed as Members felt that improvement should have been made to the currently sixty-six days. It was hoped the turnaround time would improve as the BMBS became fully operational.
An Amendment was proposed by Councillor Rachel Eburne and seconded by Councillor John Field, that a reporting framework for a performance monitoring system be put in place.
By a unanimous vote
RESOLUTION
2.1 that the updated HRA 30 year Business and financial plan(Appendix A to MOS/17/4) to be approved.
2.2 That a reporting framework for a performance monitoring system be put in place.
The business of the meeting was concluded at 11.35am
………………………………………
The Chairman
Publication date: 19/12/2019
Date of decision: 15/06/2017
Decided at meeting: 15/06/2017 - Mid Suffolk Overview and Scrutiny Committee
Accompanying Documents: