Issue - meetings

That:

1)        the budget monitoring position for the month ending 31 August 2017 be noted;

2)         the operational update for the period to 31 August 2017 be noted.

(Councillors David Lee, Norman Jorgensen and Stuart Munro declared personal interests in this item)

The Executive considered a report which provided an operational update and the budget monitoring position of the Council Owned Companies for the period ending 31 August 2017.

The Executive Member for Finance went through the report and highlighted the following areas:

·         The variance against budget shown for Wokingham Housing Ltd in August which was due to unforeseen legal costs.  It was noted that the year to date net loss of £173.5k reflected a £10.4k unfavourable variance compared to the budgeted loss;

·         Wokingham Housing Ltd had seven projects under development and nine sites in their pipeline and these developments would provide future income which was very encouraging;

·         Berry Brook Homes recorded a profit for the month from rental income from Phoenix Avenue and this was pleasing to note as this development was not fully occupied yet;

·         Loddon Homes was arranging for the transfer of residents into the new Fosters Care Home and this would take place in November with full occupancy expected in January;

·         Optalis Group continued to show profit better than budgeted and the new CEO was currently working on a new three-year plan.

The Leader of Council tabled a display board which outlined some of the schemes which were currently in the pipeline and what they would achieve when delivered.  These included six units of two-bedroomed houses at affordable rents at Grovelands which would provide a gross annual income of over £58k; a facility for care leavers at Reading Road providing a gross annual income of over £58k; 34 self-contained living apartments with on-site care provided by Optalis with an annual income of over £212k per annum; two two-bedroomed maisonettes for shared ownership with a sales value of over £200k and rental income of over £5k per annum as well as the official opening of Phoenix Avenue in November and the Elizabeth Road scheme.

RESOLVED that:

1)        the budget monitoring position for the month ending 31 August 2017 be noted;

2)         the operational update for the period to 31 August 2017 be noted.