Agenda item

Report of the Executive Director, Community and Children’s Services.

The Committee received a report of the Executive Director, Community and Children’s Services, which set out the original budget for 2023/24 and 2024/25 for revenue expenditure included within the service charge in respect of dwellings. The report noted that the actual amount charged to lessees would depend on the actual amount spent and the percentage set out in the individual leases.

The Chair presented the views of residents, noting their dissatisfaction in that the report had not been seen by the Service Charge Working Party and set out their concerns in that it appeared to show some discrepancies and lacked variance explanations.  They felt, therefore, that the BRC could not accept it in its current format, without a proper analysis, and given the complexity of the budgets.  

During the discussion the following points were noted:

1.      This is an annual report in the standard City of London Corporation format, showing budgets approved last year and charges to residents in June.  The variations are not far off of the approved budget, which had been considered by the Working Party and adjusted.  ‘Latest Approved Budget’ is the terminology used by the Chamberlain in the budget setting process. 

2.      Rents are down this year because some flats are empty.

3.      Chief Officers are responsible for budgetary control and approve virements  (in-year charges) on the nil balance.  The Executive Director gave assurance of Chief Officers’ obligations in terms of maintaining a very close budget.

4.      The most recent high level appointments had not been reflected, noting that 2 of the 3 are replacement of interims.   One of the appointments arose from an Altair recommendation in terms of contract management.  There was a significant number of agency staff this year, who are included, but they are expected to be replaced by fully employed staff in the future.  Residents asked to see a breakdown of permanent and agency costs, as the pay rise seems higher than expected and asked if interims are driving the increase.

5.      The staff salary review in July 2023 is not known at present and will factor in inflation.

6.      The commentary on general repairs, particularly windows and water penetration, could align better.

7.      In terms of fire safety, the consultant will be looking at a gap analysis in terms of floor plans, structural history etc., as this information needs to go the Government Regulator by 1st April 2024.  Fire surveys are landlord costs as they are an improvement and not rechargeable.  The Executive Director agreed to check the consultant fees.

8.      The Service Charge forecast for capital figures will be available at the next meeting of the Working Party.  There had been some challenges with engaging contractors but there had been support from residents in terms of leeway in working hours, which should help.

9.      There are two procurement streams for the windows; i.e. – urgent and longer term,  which are still to be  factored in, with repair being the preferred option to full replacement.   Concern was expressed in that the ad-hoc replacement of windows is very expensive and detrimental to residents in terms of water penetration.  Surveys on windows are currently underway and an Interim Contract Manager is now in place to pick up these issues. 

10.    A breakdown by block in respect of the Repairs and Maintenance contract and windows can be provided to the Service Charges Working Party.   

11.    If works are pushed back this will be unfair on the next generation of leaseholders, noting that the AMWP first suggested a survey in 2021.  The Executive Director explained that the Asset Management Strategy, later on this agenda, will provide a stronger tool for future programming.

12.    The Executive Director agreed to chase progress on the window cleaning contract and ensure a robust plan is in place for future procurement.

13.    The Executive Director explained that recommendations arising from the Altair Review are in hand and a more detailed report will be presented to the next meetings of the RCC/BRC.  This work will flow into the repairs and maintenance contract and the Department will then be able to drive a more cost effective model.  Members will be presented with options that will be balanced with needs of the service, residents’ views and views of staff.

14.    There was some delays to the finalisation of capital costs towards the end of 2023, which affected the reporting timetable for December.  The Executive Director also recommended a session with the Service Charge Working Party to cover the issues set out above and accepted that the Working Party should meet earlier in the budget setting process in future.

15.    In concluding the debate, Members felt that the standard terminology in terms of ‘Authorising the Chamberlain’ should be replaced by an agreement to delegate authority to the Chairs and Deputy Chairs of the BRC and the RCC, which will also facilitate leaseholder consultation, including the Service Charge Working Party. 

RESOLVED, that –

The BRC is recommended to:

1.      Review the provisional 2024/25 net £Nil revenue budget to ensure that it reflects the Committee’s objectives and, if so, approve the budget for submission to the Finance Committee.

2.      Authority be delegated to the Town Clerk, in consultation with the Chamberlain and the Chairs and Deputy Chairs of the BRC and RCC (thereby allowing leaseholder engagement) to revise these budgets to allow for further implications arising from departmental reorganisations and other reviews, and corporate projects.