Issue - meetings

To receive a summary of the financial position for Round 3 and Round 5.

Consideration was given to a report which provided an update on the financial arrangements surrounding the shared Round 3 and Round 5 Extra Care Housing Schemes. 

For Round 3 during 2009/10 expenditure had been incurred by both Councils on staffing, transport, premises, catering and set up costs across the five sites.  The main element of Round 3 was the payment to Avantage Ltd for the management of the sites and the offsetting grants received via PFI credits.  A number of elements had been identified which had resulted in increased costs to the scheme and these were to be factored into the business case for Round 5.  These included the set up costs as new residents moved in which were higher than anticipated, mainly due to occupier’s specific needs; and higher than anticipated losses on the catering provision. 

During the early part of 2009/10 a mini review of the various assumptions built into the financial model for the thirty year profile was undertaken. The review included assessing how the changes to the financial conditions following banking difficulties had and might impact on the long term viability of the scheme.

The Round 5 scheme continued to be refined following feedback from the Housing and Communities Agency and other Government Agencies.  During 2009/10, set up costs of £254,000 had been incurred, with much of this expenditure related to planning issues.  The Round 5 scheme has a budget of £1.2m for Project Management costs, of which 20% had already been incurred.  This was higher than anticipated and would require tight control during the latter stages of the development in order to remain in budget.

RESOLVED:

1          That the income and expenditure position on the Round 3 scheme during 2009/10 compared with the anticipated position at this stage in the thirty year scheme be noted.

2          The implementation costs incurred to date be noted.