HRABP - Draft 8 - Flipbook - Page 27
occurring as a result of Government policy
(Welfare Reform), changing household
formation (a shift to a need for smaller
property with smaller families, rise in the
number of single households), and an
increasing older population.
The redevelopment programme (detailed
in the Investment section of the business
plan) responds to opportunities to provide
improved accommodation which meets
current and predicted future demand.
16. Annual Income and
Expenditure
The chart below shows the budgeted
expenditure costs for 2018/19. The total
expenditure is £21.1m of which £5.3m
relate to management costs. Direct estate
management and tenant services account
for £3.7m of this and the remaining
£1.4m relates to other services such as
communal heating, estate caretakers and
delivery of the redevelopment and housing
development programmes.
Non-Dwelling
Rent
Service
Charges &
Facilities
Reimbursment
of costs
Contributions
toward
expenditure
Leaseholders
Dwelling Rent
Our total anticipated budgeted income
for 2018/19 is £20.3m with £18.7m made
up of dwelling rents. This significant
reliance on our rental income highlights
the importance of managing this income
stream for funding the services we offer
and the investment we have planned.
The following chart shows the budgeted
income for 2018/19.
Trf to Debt
Repayment
Reserve
Borrowing
Costs
Rents &
Rates
Contribution
to CDC
Direct Revenue
Financing
Depreciation
Repairs &
Maintenance
Management
Costs
17. HRA Balances and Reserves
The HRA maintains 5 reserves as well as the
HRA revenue working balance. We plan to
use the Major Repairs Reserve (MRR) to
part fund our capital programme in each
year from 2018/19 onwards, whilst still
increasing our balances to service future
years’ debt repayments. The balance at
31st March 2022 is projected to be £10.7m.
The viability of the HRA depends on acting
prudently, including setting sufficient sums
aside to meet our future liabilities. The
transfer of funds to the Debt Repayment
Reserve gives the flexibility over future
decisions for repayment of debt. The
balance at 31st March 2022 is forecast
to be £2.14 million after repaying the
first instalment of £10.766m. Future debt
repayment instalments will be funded by
both the Debt Repayment Reserve and the
MRR.
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