Report of the Cabinet Member for Housing setting out the: Housing Revenue Account Business Plan for the period 2012/13 to 2041/42; the detailed Capital Budget for 2011/12 to 2015/16 and the Revenue Budgets for 2011/12 and 2012/13, attached.
Minutes:
The report of the Cabinet Member for Housing was submitted seeking approval to the Housing Revenue Account Business Plan for the period 2012/13 to 2041/42 and the Revenue Budgets for 2012/13 (copy of report circulated with agenda and appended to signed minutes).
Amendment moved by Councillor Turner and seconded by Councillor Vinson:
“Add (xvi ) Approves the Housing Revenue Account Revenue Estimates as set out in Appendix 1 of the Housing Revenue Account Budget Report and Business Plan, with the amendment that the provision of £100,000 as set out in paragraph 32 which is to be utilised for other service developments such as tackling health inequalities in some of our estates and enhancing skills opportunities for our tenants which includes working in partnership with local universities also includes working with local sixth forms and colleges,”
UPON BEING PUT TO THTE VOTE THE AMENDMENT WAS DECLARED LOST.
RESOLVED:
(i) that the Tenant Association Representatives be thanked for their input to the capital and revenue budget setting process and that their views as set out in the report be noted;
(ii) that following the completion of the full financial assessment of the changes to target rents approved by Council on 16 November 2011 to:
· Confirm that the target rent for houses will be increased by 5%,
· Approve a further reduction in the target rent for flats of 0.06% (giving a total reduction of 2.96%) so that the overall average target rent for all dwellings remains unchanged,
· Approve the indexing of the £2.00 factor in the individual property rent restructuring calculation by RPI plus 0.5% from 2001/02 and the phased implementation of the amended calculation in equal instalments between 2013/14 and 2015/16,
· Confirm that from 2 April 2012, all new tenants will be charged the target rent for the property they move into,
· Confirm that in all other respects, rents should be set using the Government’s Rent Restructuring regime;
(iii) that, with effect from the 2 April 2012, the current average weekly dwelling rent figure of £69.73 be increased by 7.54%, which equates to an average increase of £5.26 per week, and that the following be approved to calculate this increase:
· That the percentage increase applied to all dwelling rents should be 6.1%, equivalent to an increase of £4.25 per week; and
· That the rent restructuring component of the increase should follow the arrangements set out in resolution (ii) above, giving an increase in average rent levels of 1.44% (£1.01 per week) and
to note that:
· The total percentage increase in individual rents will vary according to the restructured rent of their property;
(iv) that the following weekly service charges from 2 April 2012 based on the full cost recovery approach agreed by Council in November 2011 be approved:
· Digital TV £0.42 (unchanged from 2011/12)
· Concierge £1.20 (increased by £0.08 from 2011/12)
· Tower Block Wardens £4.97 (reduced by £0.14 from 2011/12)
(v) that it be noted that the service charges in supported accommodation will not change from 2 April 2012 but that these will be reviewed in the spring of 2012 in consultation with tenants, with any changes taking effect from October 2012;
(vi) that subject to consultation with tenants, approval be given to the introduction of a new cleaning charge for walk up blocks of £0.91 per week, the start date for which will be agreed with tenants;
(vii) that the charges for garages and parking spaces for 2012/13 be increased by 5.6% in line with the increase in RPI used in the calculation of the increase in average rents;
(viii) that the increase in minimum HRA balances to £2M be approved;
(ix) that the Housing Revenue Account Revenue Estimates as set out in Appendix 1 to the report be approved;
(x) that the revised Housing Revenue Account Capital Programme set out in Appendix 2 to the report be approved;
(xi) that the 30 year capital and revenue business plans set out in appendices 4 and 5 to the report be approved;
(xii) that the principles underlying capital spending plans that have been included in the business plan as set out in appendix 6 to the report be approved;
(xiii) that the HRA business planning assumptions as set out in Appendix 7 to the report be noted;
(xiv) that it be noted that rental income and service charge payments will be paid by tenants over a 48 week period; and
(xv) that the intention to develop a HRA efficiency programme during 2012/13 be noted.
Supporting documents: