Issue - meetings

Report of the Cabinet Member for Housing and Sustainability seeking approval for the Housing Revenue Account budget proposals and long term business plan to be recommended to the budget setting Council meeting on 12 February 2014, attached.

The report of the Cabinet Member for Housing and Sustainability was submitted setting out the Housing Revenue Account budget proposals and long term business plan (copy of report circulated with agenda and appended to signed minutes).

RESOLVED:

(i)  That the Tenant Resource Group be thanked for their input to the capital and revenue budget setting process and their endorsement of the recommendations set out in the report and also the broad support for the proposals received at the Tenants’ Winter Conference be noted;

(ii)  that the following be approved to calculate the dwelling rent increase from 1 April 2014:

·  That the standard increase applied to all dwelling rents should be 3.7% (RPI plus 0.5% as set out in paragraph 9), equivalent to an average increase of £2.91 per week; and

·  That dwelling specific rent restructuring adjustments should be made to give an additional increase in average rent levels of 3.25% (£2.55 per week), subject to the total increase from both elements not exceeding £10.00 per week for any individual property (as set out in paragraph 16 of the report);

(iii)  that, based on the calculation set out in resolution (ii) above, that with effect from the 1 April 2014, the current average weekly dwelling rent figure of £78.53 be increased by 6.95%, which would equate to an average increase of £5.46 per week;

(iv)  that it be noted that the actual total increase in individual rents would vary by property as explained in paragraph 17 of the report;

(v)  that the following weekly service charges from 1 April 2014 based on a full cost recovery approach be noted:

·  Digital TV £0.42 (unchanged from 2013/14)

·  Concierge £1.20 (unchanged from 2013/14)

·  Tower Block Warden charge £4.97 (unchanged from 2013/14)

(vi)  that the proposed service charges for supported accommodation, as set out in paragraph 33 of the report, should be used as the basis for consultation with tenants;

(vii)  that it be noted that a new cleaning charge for walk up blocks of £0.91 per week, approved in the February 2013 budget report, will be introduced from 1 April 2014;

(viii)  that it be noted that the charges for garages and parking spaces for 2014/15 would be increased by 3.2% in line with the increase in RPI used in the calculation of the increase in average rents;

(ix)  that the Housing Revenue Account Revenue Estimates as set out in Appendix 1 to the report be approved;

(x)  that the principle that the HRA Business Plan should  have minimum ‘borrowing headroom’ of £6M, at the time of its annual approval by Council, as detailed in paragraph 8 of the report be approved;

(xi)  that the revised Housing Revenue Account Capital Programme set out in Appendix 2 to the report be approved and that the key variances and issues in Appendix 3 to the report be noted;

(xii)  that the 30 year Business Plans for revenue and capital expenditure set out in Appendices 4 and 5 of the report respectively be approved;

(xiii)  that the  ...  view the full minutes text for item 86

Report of the Cabinet Member for Housing and Sustainability seeking approval for the Housing Revenue Account budget proposals and long term business plan to be recommended to the budget setting Council meeting on 12 February 2014, attached.

DECISION MADE: (Ref: CAB 13/14 12033)

On consideration of the report of the Cabinet Member for Resources, Cabinet agreed to recommend the following to Council:

i)  To thank the Tenant Resource Group for their input to the capital and revenue budget setting process and to note their endorsement of the recommendations set out in this report and also the broad support for the proposals received at the Tenants’ Winter Conference.

ii)  To approve the following to calculate the dwelling rent increase from 1 April 2014:

·  That the standard increase applied to all dwelling rents should be 3.7% (RPI plus 0.5% as set out in paragraph 9), equivalent to an average increase of £2.91 per week; and

·  That dwelling specific rent restructuring adjustments should be made to give an additional increase in average rent levels of 3.25% (£2.55 per week), subject to the total increase from both elements not exceeding £10.00 per week for any individual property (as set out in paragraph 16).

iii)  To approve, based on the calculation set out in recommendation (ii) above, that with effect from the 1 April 2014, the current average weekly dwelling rent figure of £78.53 should increase by 6.95%, which will equate to an average increase of £5.46 per week.

iv)  To note that the actual total increase in individual rents will vary by property as explained in paragraph 17.

v)  To note the following weekly service charges from 1 April 2014 based on a full cost recovery approach:

·  Digital TV £0.42 (unchanged from 2013/14)

·  Concierge £1.20 (unchanged from 2013/14)

·  Tower Block Warden charge £4.97 (unchanged from 2013/14)

vi)  To approve that the proposed service charges for supported accommodation, as set out in paragraph 33 of this report, should be used as the basis for consultation with tenants.

vii)  To note that a new cleaning charge for walk up blocks of £0.91 per week, approved in the February 2013 budget report, will be introduced from 1 April 2014.

viii)  To note that the charges for garages and parking spaces for 2014/15 will be increased by 3.2% in line with the increase in RPI used in the calculation of the increase in average rents.

ix)  To approve the Housing Revenue Account Revenue Estimates as set out in the attached Appendix 1.

x)  To approve the principle that the HRA Business Plan should  have minimum ‘borrowing headroom’ of £6M, at the time of its annual approval by Council, as detailed in paragraph 8 of this report.

xi)  To approve the revised Housing Revenue Account Capital Programme set out in Appendix 2 and to note the key variances and issues in Appendix 3.

xii)  To approve the 30 year Business Plans for revenue and capital expenditure set out in Appendices 4 and 5 respectively.

xiii)  To note the HRA Business Plan assumptions set out in Appendix 6.

xiv)  To note that rental income and service charge payments will continue to be paid by tenants over a 48 week period.