Self Financing Update

Transcription

1 Self Financing Update Alison Rusdale Director of Finance Berneslai Homes

2 Developing the Business Plan First long term plan prepared to meet Government Resource Accounting requirements 10 Year Capital Plan for ALMO bid in 2002 Started work on Self Financing in 2009 Responded positively to Government proposals

3 Consultation Process Workshop BH/Council/Tenants on priorities Customer Panel Sessions Formal Working Group Structure Ongoing discussions with Tenants Federation Approval by Council

4 What s in our Base 30 year Business Plan Maintaining decency Current repair obligations Current service levels

5 What s not in our Base 30 Year Plan? Tenants aspirations for Decent Homes Plus New Build Enhanced Service Offer Environmental Improvements Remodelling Sheltered Schemes Work to non dwellings e.g. shops and community centres

6 5 Year Capital Programme Approved 5 Year Programme 2013/14 to 2018/19 currently in place Aligned to 30 year Self Financing Business Plan 2013/14, 2014/15 and 2015/16 Barnsley Homes Standard address lists already available and published on the internet

7 What has changed since the Business Plan was developed? Reinvigorated Right to Buy leading to increase in sales Ability to keep part of receipts from sales for new build or acquisitions receipts Funding opportunities around sustainable energy Stakeholder priorities Council economic strategy Welfare Reform

8 How have we responded? Offsetting the impact of RTB 75 New Build planned to meet housing need, and to spend receipts in Barnsley ( 8.6M) Small programme to convert under-used shops & community centres to dwellings Acquisition Programme of 2M funded from ALMO reserves

9 How have we responded? Completed Solar PV scheme to 300 dwellings and invested in low carbon technology on District Heating schemes In discussion with the Council on how we can support their economic strategy Welfare Reform Action Plan & Project Group

10 How is SFBP Monitored? Full annual update of base plan Modelling of significant changes as they arise Monthly monitoring of key variables through PMF Link to monthly monitoring of annual revenue budget Link to monthly 5 year capital programme update Risk register quarterly review focuses on risks to SFBP

11 Where are we on the Self Financing Business plan? A year in and everything is on track Servicing debt is first call against rent income Interest rates at historic low Forecast to repay the debt by year 25

12 Where are we on the Self Financing Business plan? We have outperformed the plan and everything remains on track 2012/ /14 Bad Debts?? Void Rent Loss?? Interest Rates?? Right to Buys X??

13 Debt Profile Debt Outstanding at the start of the Financial Year 350,000, ,000, ,000, ,000, ,000,000 Debt Outstanding Debt Cap 100,000,000 50,000, Years

14 Where are we on the Self Financing Business plan? From around year 5 the debt starts to reduce at this stage we can either choose to repay the debt or increase investment in the stock & services or a mix If we are able to do more, things to consider include:- Mitigating against fuel poverty, and low carbon emissions Maintaining stock numbers Improving the environment Invest to save in the stock e.g. planned roof replacements vs repairs Seeking views from Tenants and the Council BUT we need to see the implications of Welfare Reform

15 What if arrears increase to 5%? Debt Outstanding at start of Financial Year 350,000, ,000, ,000,000 Debt Oustanding 200,000, ,000,000 Debt Outstanding at start of Financial Year 100,000,000 50,000, Years

16 What if arrears increase to 10%? Debt Outstanding at start of Financial Year 350,000, ,000, ,000,000 Debt Oustanding 200,000, ,000,000 Debt Outstanding at start of Financial Year 100,000,000 50,000, Years

17 Treasury Management 2 pools HRA and GF notional split of long term debt at 31 March 2012 all new debt allocated to HRA or GF pool Allows different strategies Decisions linked to SFBP align actual external debt to need to borrow Debt managed by the Council team

18 Treasury management BH Director of Finance attends Council TM Panel BH Audit Committee delegated responsibility Training of Board

19 Self Financing has allowed us to plan ahead provide a clear service offer to tenants guaranteeing excellent customer services, a 24/7 responsive repairs and the Barnsley Homes standard, invest 8.6 m in new build and 4.5 m in renewable energy and new heating

20 Self Financing has allowed us to BUT need to manage the risks regular conversation with tenants so we are ready to redefine priorities if necessary

21 Any Questions?