Agenda item

Report of the Cabinet Member for Housing and Leisure regarding further consideration of the financial model and approval of the capital expenditure for the implementation of Phase 1, attached.

The report of the Cabinet Member for Housing and Leisure was submitted regarding further consideration of the financial model and approval of the capital expenditure for the implementation of Phase 1 (copy of report circulated with agenda and appended to signed minutes).

The Council agreed to suspend Council Procedure Rules 14.2, 14.5, 14.6, 14.7, 14.8, 14.9 and 16.2:-

(i) to enable the above items to be considered together;

(ii) to enable any amendments to be proposed, seconded and considered at the same time;

(iii) to enable any amendment to be re-introduced later into the meeting.

Amendment moved by Councillor Baillie and seconded by Councillor Hannides:

Add additional recommendations (iv) and (v) as follows:

(iv)  that Council notes that the rationale behind estate regeneration is the poor quality of many of Southampton’s estates, together with significant social, economic, education and health deprivation found on those estates. Council further notes that all the available evidence tells us that only with wholesale estate regeneration will the social, economic, education and health deprivation of those residents be improved on those estates.

(v)  that Council asks Cabinet to note that significant economic and social damage may occur through only offering homes at affordable rent and Cabinet will therefore endeavour to offer a significant number of homes at social rent.

Amended recommendations to read:

(i)  To agree that the HRA capital programme will fund the site preparation costs set out in this report, currently estimated at £11.8M, and:

(a)  To approve a virement of £10.5M from the uncommitted provision for Estate Regeneration, which exists in the HRA capital programme and business plan, and £1.3M from the uncommitted funding for affordable housing in the Housing GF capital programme to establish a specific budget of £11.8M for the regeneration of Townhill Park, the phasing for which is set out in Appendix 1.

(b)  To approve, in accordance with Financial Procedure Rules, capital spending of £3.9M on site preparation costs, including the purchase of leasehold interests, for Phase 1 of the Townhill Park regeneration project phased, £0.5M in 2012/13, £2.0M in 2013/14 and £1.4M in 2014/15.

(c)  To approve, in accordance with Financial Procedure Rules, capital spending of up to a further £3.9M on the purchase of leasehold interests for properties in phases 2 and 3 of the Townhill Park regeneration project phased, £0.5M in 2013/14, £0.8M in 2014/15, £1.4M in 2015/16 and £1.2M in 2016/17.

(ii)  To approve the use of £23.9M of the 30 year HRA revenue surplus to meet the long term revenue costs of the regeneration of Townhill Park, which includes the requirement to repay the debt on the dwellings that have been disposed of from the general HRA revenue balance as there is no net capital receipt to fund this repayment.

(iii)  To agree that the General Fund capital programme will fund the highways infrastructure and open space improvements at an estimated cost of £2.6M with the method of funding this being agreed once the use of the Community Infrastructure Levy and the value of the GF capital receipts become known.

(iv)  That Council notes that the rationale behind estate regeneration is the poor quality of many of Southampton’s estates, together with significant social, economic, education and health deprivation found on those estates. Council further notes that all the available evidence tells us that only with wholesale estate regeneration will the social, economic, education and health deprivation of those residents be improved on those estates.

(v)  That Council asks Cabinet to note that significant economic and social damage may occur through only offering homes at affordable rent and Cabinet will therefore endeavour to offer a significant number of homes at social rent.

Further amendment moved by Councillor Vinson and seconded by Councillor Turner:

Add additional recommendation (iv):

(vi)  That the difference between Target and Affordable Rent be phased in over three years.

Amended recommendations to read:

(i)  To agree that the HRA capital programme will fund the site preparation costs set out in this report, currently estimated at £11.8M, and:

(a)  To approve a virement of £10.5M from the uncommitted provision for Estate Regeneration, which exists in the HRA capital programme and business plan, and £1.3M from the uncommitted funding for affordable housing in the Housing GF capital programme to establish a specific budget of £11.8M for the regeneration of Townhill Park, the phasing for which is set out in Appendix 1.

(b)  To approve, in accordance with Financial Procedure Rules, capital spending of £3.9M on site preparation costs, including the purchase of leasehold interests, for Phase 1 of the Townhill Park regeneration project phased, £0.5M in 2012/13, £2.0M in 2013/14 and £1.4M in 2014/15.

(c)  To approve, in accordance with Financial Procedure Rules, capital spending of up to a further £3.9M on the purchase of leasehold interests for properties in phases 2 and 3 of the Townhill Park regeneration project phased, £0.5M in 2013/14, £0.8M in 2014/15, £1.4M in 2015/16 and £1.2M in 2016/17.

(ii)  To approve the use of £23.9M of the 30 year HRA revenue surplus to meet the long term revenue costs of the regeneration of Townhill Park, which includes the requirement to repay the debt on the dwellings that have been disposed of from the general HRA revenue balance as there is no net capital receipt to fund this repayment.

(iii)  To agree that the General Fund capital programme will fund the highways infrastructure and open space improvements at an estimated cost of £2.6M with the method of funding this being agreed once the use of the Community Infrastructure Levy and the value of the GF capital receipts become known.

(iv)  That the difference between Target and Affordable Rent be phased in over three years.

UPON BEING PUT TO THE VOTE THE AMENDMENT IN THE NAME OF COUNCILLOR VINSON WAS DECLARED LOST

UPON BEING PUT TO THE VOTE THE AMENDMENT IN THE NAME OF COUNCILLOR BAILLIE WAS DECLARED LOST

UPON BEING PUT TO THE VOTE THE MOTION AS SUBMITTED WAS DECLARED CARRIED

RESOLVED:

(i)  That the HRA capital programme will fund the site preparation costs set out in the report, currently estimated at £11.8M be agreed and:

(a)  That a virement of £10.5M from the uncommitted provision for Estate Regeneration, which exists in the HRA capital programme and business plan, and £1.3M from the uncommitted funding for affordable housing in the Housing GF capital programme to establish a specific budget of £11.8M for the regeneration of Townhill Park, the phasing for which is set out in Appendix 1 to the report be approved.

(b)  That, in accordance with Financial Procedure Rules, capital spending of £3.9M on site preparation costs, including the purchase of leasehold interests, for Phase 1 of the Townhill Park regeneration project phased, £0.5M in 2012/13, £2.0M in 2013/14 and £1.4M in 2014/15 be approved.

(c)  That, in accordance with Financial Procedure Rules, capital spending of up to a further £3.9M on the purchase of leasehold interests for properties in phases 2 and 3 of the Townhill Park regeneration project phased, £0.5M in 2013/14, £0.8M in 2014/15, £1.4M in 2015/16 and £1.2M in 2016/17 be approved.

(ii)  That the use of £23.9M of the 30 year HRA revenue surplus to meet the long term revenue costs of the regeneration of Townhill Park, which includes the requirement to repay the debt on the dwellings that have been disposed of from the general HRA revenue balance as there is no net capital receipt to fund this repayment be approved.

(iii)  That the General Fund capital programme will fund the highways infrastructure and open space improvements at an estimated cost of £2.6M with the method of funding being agreed once the use of the Community Infrastructure Levy and the value of the GF capital receipts become known be agreed.

NOTE:

FOR: AMENDMENT IN THE NAME OF COUNCILLOR BAILLIE: Councillors Smith, Baillie, Claisse, Daunt, Fitzhenry, Hannides, B.Harris, L.Harris, Ingis, Kolker, Mead, Moulton, Norris, Parnell, Turner, Vassilliou Vinson and White

AGAINST: Councillors Dr. R. Williams, Barnes-Andrews, Mrs Blatchford, Bogle, Chaloner, Cunio, Furnell, Jeffery, Kaur, Keogh, Laming, Letts, Lewzey, Lloyd, McEwing, Mintoff, Morrell, Noon, Dr Paffey, Payne, Pope, Rayment, Spicer, Stevens, Thomas, Thorpe, Tucker, and Whitbread

ABSTAINED: Councillor Burke

FOR: AMENDMENT IN THE NAME OF COUNCILLOR VINSON: Councillors Turner and Vinson

AGAINST Councillors Dr. R. Williams, Barnes-Andrews, Mrs Blatchford, Bogle, Chaloner, Cunio, Furnell, Jeffery, Kaur, Keogh, Laming, Letts, Lewzey, Lloyd, McEwing, Mintoff, Morrell, Noon, Dr Paffey, Payne, Pope, Rayment, Spicer, Stevens, Thomas, Thorpe, Tucker, and Whitbread

ABSTAINED: Councillors Burke, Smith, Baillie, Claisse, Daunt, Fitzhenry, Hannides, B.Harris, L.Harris, Ingis, Kolker, Mead, Moulton, Norris, Parnell, Vassiliou, and White

FOR: SUBSTANTIVE MOTION: Councillors Dr. R. Williams, Barnes-Andrews, Mrs Blatchford, Bogle, Chaloner, Cunio, Furnell, Jeffery, Kaur, Keogh, Laming, Letts, Lewzey, Lloyd, McEwing, Mintoff, Morrell, Noon, Dr Paffey, Payne, Pope, Rayment, Spicer, Stevens, Thomas, Thorpe, Tucker, and Whitbread

AGAINST: Councillors Smith, Baillie, Claisse, Daunt, Fitzhenry, Hannides, B.Harris, L.Harris, Ingis, Kolker, Mead, Moulton, Norris, Parnell, Vassiliou and White

ABSTAINED: Councillors Burke, Turner and Vinson