Housing Asset Management Strategy 2019 - 2024 - Report - Page 13
Financial Information
We are required to account separately for our housing provision via the Housing
Revenue Account (HRA). This is a ring-fenced account containing the costs arising
from the provision and the management of the Councils housing stock, offset by
tenant rents, service charges and other income.
We have a 30-year financial business model to support the delivery of the HRA.
It makes assumptions regarding the level of income available and the key risks
facing housing service delivery within this timeframe. It programmes in the years
we expect to pay back the current borrowing, whilst delivering the needs of the
service.
Our repairs and maintenance (R & M) programme is split between capital and
revenue. Revenue costs are funded from the revenue income from rents, whilst
capital is funded from the Major Repairs Reserve (MRR).
The total R & M budget for both revenue and capital for 2019-20 is approximately
£7m, which will increase in line with inflation over future years. During the life of
the financial business plan there are projected peaks within the R & M programme
where components will need replacing. These will be monitored and controlled
to reduce the strain on the financial position of the HRA. Reducing these peaks
in spending helps give a consistent financial approach, allowing accurate spend
on the new development programme without the requirement of increasing
borrowing and allows for better workforce planning.
Between 2018 and 2020 a budget of £501k was included in both the R&M revenue
and capital budgets for additional works on our only tower block at St Peter’s Court.
These completed works included new window reveals, door replacement, water
tank replacement, and a new sprinkler system. These works have been included
in the programme in response to the issues identified by the tragic Grenfell Tower
fire in 2017 and demonstrate the Councils commitment to ensuring the safety of
tenants of the building. However, events such as the Grenfell fire also demonstrate
that unforeseen events can have a substantial impact on planned budgets,
indicating the importance of maintaining sufficient reserves.
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Getting value for money is also important and we
have sought to increase the level of partnership
working we undertake to deliver better value. We
are working with a broad range of public sector
organisations (Norfolk County Council, Suffolk
County Council and Great Yarmouth Borough
Council) to deliver home improvements that
prevent bed blocking and enable earlier hospital
discharge benefitting the public purse as well
as being better for the client. We also carry out
adaptations to homes in the private sector which
benefit the public purse as well as generating an
income to the Council.
