Agenda item

B Report of Finance and Support (Copy herewith)

2.1             Cabinet recommended to Council to approve:

a)     An average rent increase of 6.79% per dwelling, in line with the Government’s rent restructuring regime, convergence in 2015/16, to take effect from 2 April 2012.

b)     The de-pooled service charges listed in Appendix 6 of the report.

c)      The increase in existing service charges listed in Appendix 6 of the report, which includes Sheltered Accommodation Warden charges (including Eleonore House), Heating service charges, garage charges and Brookside Meadows service charges.

2.2             That the feedback from the Overview and Scrutiny Committee be considered and welcomed (detailed at Appendix 1 of the report).

2.3             That the Council’s representations on the draft HRA Self-financing determination be noted (Appendix 2 of the report).

2.4             That the changes to the proposed budget (detailed at Appendix 3 of the report), in light of the consultation responses, equalities issues and the Governments Draft then Final HRA Self-financing Determinations be agreed.

2.5             That the HRA budget for 2012/13 of £50.2m expenditure (including options) be recommended to the Council (detailed in Appendix 4 of the report) for its own purposes.

2.6             That the Cabinet acknowledges the issues and risks detailed in the Section 151 Officer’s statement on the robustness of estimates and the adequacy of the reserves (Appendix 7 of the report).

2.7             That Council be recommended to delegate authority to the Chief Executive and Director of Finance and Support to implement all budget options and restructures.

2.8             That authority be delegated to the Director of Finance and Support in consultation with the Portfolio Holder for Finance, and where appropriate the relevant Director and Portfolio Holder to:

¬         transfer monies from earmarked reserves should that become necessary during the financial year.

¬         update the budget tables and Appendices, prior to Council should any further changes be necessary

¬         update prudential indicators in both the Prudential Indicators report and Treasury Strategy report, prior to Council for any budget changes that impact on these.

2.9             That the Council be recommended to confirm the reserves strategy of protecting balances wherever possible to allow the option of supporting future years budgets, aiming for a minimum level of unallocated HRA reserves of £5.0m at the end of 2012/13 having regard to the outcome of the financial risk assessment and remaining at this level over the medium term and in line with the 30 year Business Plan.

Councillor Mennell addressed Cabinet and stated that the reports had been very late and Councillors had not been given enough time to read them.

Councillor Bottwood as the relevant Cabinet Member introduced the report and explained that for the HRA reform the Council would have to borrow £192 million, which was less than the initial estimation of £194 million to move to a self financing position.

Councillor Markam commented that it had previously been stated by the administration that they would immediately start the process of consulting with tenants with regards to the stock transfer to housing associations, the aim of which would be to release funding to pay for urgent improvements to meet the decent homes standard. However, there had been a delay as clarification and guidance from central Government that had not been forthcoming on the HRA and the National Housing Strategy. Due to the improvements needed to the Housing Stock, it was not deemed a long-term solution and was currently unsustainable. She stated that there was a commitment to improving living conditions for tenants, which was why it remained a priority for the Administration to consult with tenants on a large-scale stock transfer. She commented that it was essential for the process to be handled properly and responsibly and thus the money put aside would allow the process to begin to ensure residents would be fully consulted on the matter.

RESOLVED:

1)     That Cabinet recommended to Council to approve:

a)     An average rent increase of 6.79% per dwelling, in line with the Government’s rent restructuring regime, convergence in 2015/16, to take effect from 2 April 2012.

b)     The de-pooled service charges listed in Appendix 6 of the report.

c)      The increase in existing service charges listed in Appendix 6 of the report, which includes Sheltered Accommodation Warden charges (including Eleonore House), Heating service charges, garage charges and Brookside Meadows service charges.

2)     That the feedback from the Overview and Scrutiny Committee be considered and welcomed (detailed at Appendix 1 of the report).

3)     That the Council’s representations on the draft HRA Self-financing determination be noted (Appendix 2 of the report).

4)     That the changes to the proposed budget (detailed at Appendix 3 of the report), in light of the consultation responses, equalities issues and the Governments Draft then Final HRA Self-financing Determinations be agreed.

5)     That the HRA budget for 2012/13 of £50.2m expenditure (including options) be recommended to the Council (detailed in Appendix 4 of the report) for its own purposes.

6)     That the Cabinet acknowledges the issues and risks detailed in the Section 151 Officer’s statement on the robustness of estimates and the adequacy of the reserves (Appendix 7 of the report).

7)     That Council be recommended to delegate authority to the Chief Executive and Director of Finance and Support to implement all budget options and restructures.

8)     That authority be delegated to the Director of Finance and Support in consultation with the Portfolio Holder for Finance, and where appropriate the relevant Director and Portfolio Holder to:

¬         transfer monies from earmarked reserves should that become necessary during the financial year.

¬         update the budget tables and Appendices, prior to Council should any further changes be necessary

¬         update prudential indicators in both the Prudential Indicators report and Treasury Strategy report, prior to Council for any budget changes that impact on these.

9)   That the Council be recommended to confirm the reserves strategy of protecting balances wherever possible to allow the option of supporting future years budgets, aiming for a minimum level of unallocated HRA reserves of £5.0m at the end of 2012/13 having regard to the outcome of the financial risk assessment and remaining at this level over the medium term and in line with the 30 year Business Plan.