Issue - meetings

To submit the report of the Director of Function (Resources)/Section 151 Officer.

It was resolved to note the following –

·        The position set out in respect of the financial performance of the Housing Revenue Account (HRA) for Quarter 1 2019/20.

·        The forecast outturn for 2019/20.

The report of the Director of Function (Resources)/Section 151 Officer setting out the financial performance of the Housing Revenue Account (HRA) Budget for Quarter 1 2019/20 was presented for the Executive’s consideration.

The Portfolio Member for Finance reported that the revenue financial position for the first quarter shows an overspend of £4k. The income forecast is now £75k better than the original budget, and expenditure is forecast to be on budget. Capital expenditure is £342k above the profiled budget and the forecast expenditure is £142k higher than the budget. The forecast deficit therefore (combining both revenue and capital) is £67k higher than the budget due largely to the higher than budgeted capital expenditure.

The Director of Function (Resources)/Section 151 Officer advised that the Authority continues to use HRA balances to fund capital expenditure in the first place but that as those balances are used up the Authority will look to external borrowing. Following changes to Welsh Government rules which allow greater scope for borrowing, the Authority will review its housing schemes to establish how many new council houses it is able to develop by borrowing whilst also ensuring that the amount of borrowing is at a level affordable to the HRA.

It was resolved to note the following –

•           The position set out in respect of the financial performance of the Housing Revenue Account (HRA) for Quarter 1 2019/20.

•           The forecast outturn for 2019/20.