Post on 28-Apr-2018
transcript
Income Generation 2016 – Commercial
Approach To Property Management Nick Tustian, Chief Executive, Eastleigh Borough Council
Eastleigh Borough Council
South Hampshire – 31 Sq Miles Population -125,000 Southampton Airport ,
Hampshire Cricket & Howards Way
Medium sized District Council 500 employees Revenue spend £60M per year Capital spend - £20M per year
Background
• Need to Change:
– Financial
– Working in a new (broken) public sector
• Ambition:
– Protect Front -Line Services
– Deliver Major Projects
– Regeneration of Local Centres
– Housing – 15000 over next 20 yrs
– Become Revenue Support Grant Free
– Below Inflation Increase in Council Tax (13 yrs)
What Are We Doing
• Transform the way we deliver services
• Become more Commercial (whatever that
means)
• Ensure we have staff with the right skills
• Understand what is important to our
residents
• Generate efficiency savings
Being More Commercial
Build on the Successes of our Property
Strategy (2008)
• Pro-actively acquired property assets
• Prudential Borrowing
• Due Diligence – Covenant, Cash Flows etc
• Investment return – 7%
• Implemented decision making process
• Restructure of Estates Team
Financial Impact
2007/08
£M
2016/17
£M
Asset Value 55 220
Rental Income 1.7 7.00
Borrowing 6.2 120
Net Surplus
(After all Costs)
1.2 5.0
Barriers
• Legal
• Bureaucracy – decision making process
• Political
• Skills - Workforce
• Changing market – being one step ahead
• Appetite for risk
Where Are We Going?
• Housing
– Commercial Housing Company
– Working with Developers, Land Owners etc
• Understand what commercialism really
means – not just about the money
• Need to change the way we think about
services
WE STILL HAVE A LONG WAY TO GO