Agenda item

Report of the Cabinet Member for Housing seeking approval of the Housing Revenue Account budget proposals including:-

(a) the proposed 2011/12 Housing Revenue Account (HRA) revenue estimates for all of the day to day services provided to Council tenants in the City, together with the proposed rent and service charge increases for council tenants from April 2011; and

(b) the HRA capital programme for the period to 2013/14, which will update the programme approved by Council on 15^th September 2010.

The report of the Cabinet Member for Housing was submitted seeking approval to the Housing Revenue Account budget proposals including the proposed 2011/12 Housing Revenue Account (HRA) revenue estimates for all of the day to day services provided to Council tenants in the City, together with the proposed rent and service charge increases for council tenants from April 2011 and the HRA capital programme for the period to 2012/13 (copy of report circulated with agenda and appended to signed minutes).

RESOLVED:

(i)  That the Tenant Association Representatives be thanked for their input to the capital and revenue budget setting process and their views as set out in the report be noted;

(ii)  That it be agreed that, with effect from the 4th April 2011, the current average weekly dwelling rent figure of £65.15 should increase by 6.99%, which equates to an average increase of £4.55 per week, and that the following be approved to calculate this increase:

·  That the percentage increase applied to all dwelling rents should be 5.1%, equivalent to an increase of £3.32 per week; and

·  That the revised phased introduction of the Government’s Rent  Restructuring regime should be followed, giving an increase in average rent levels of 1.89% (£1.23 per week)

and to note that:

·  The total percentage increase in individual rents will vary according to the restructured rent of their property in 2015/16.

(iii)  That the charges for garages and parking spaces for 2011/12 be increased by 6.99% in line with the increase in average rents;

(iv)  That the Housing Revenue Account Revenue Estimates as set out in the attached Appendix 1 to the report be approved;

(v)  That the revised Housing Revenue Account Capital Programme set out in Appendix 2 to the report which includes total spending of £55.028M on work that meets the definition of “affordable housing” be approved;

(vi)  That the use of resources to fund the HRA Capital Programme as shown in Appendix 3 to the report, be approved including the following use of unsupported (prudential) borrowing:

·  £2.150M to support the overall programme (unchanged from the report in September 2010);

·  £3.356M to fund the new build programme that is not funded from HCA grant,

·  £2.230M to fund the digital TV proposals,

·  £0.870M to fund the estate regeneration programme pending the receipt of capital receipts from sale of the sites and

·  £3.100M of short term borrowing to sustain the programme in 2010/11, which can be repaid by the end of 2012/13.

(vii)  That parking charges at Wyndham Court be amended as set out in appendix 5 to the report;

(viii)  That the rent setting policy for new build, acquired and converted dwellings be adopted as set out in Appendix 6 to the report;

(ix)  That it be noted that rental income and service charge payments would be paid by tenants over a 48 week period; and

(x)  That it be noted that the overall shortfall in resources of £3.079M to fund the capital programme is within the tolerances set by the Executive Director for Resources in the approved Medium Term Financial Strategy and that plans are in place to close this gap as set out in paragraph 35 of the report.