Agenda and minutes

The agenda and reports associated with this minute can be found at:-

http://committees.aberdeencity.gov.uk/ieListDocuments.aspx?CId=122&MId=2291&Ver=4

The Council was requested to determine that the following items of business  be considered as matters of urgency in terms of Section 50(B)(4)(b) of the Local Government (Scotland) Act 1973:-

6.                  Prudential Indicators - Report by Director of Corporate Governance

7.         Local Authority Trading Company - Report by Director of Social Care and Wellbeing

 

The Council was also requested to determine that the following item of business, which contained exempt information as described in Schedule 7(A) of the Local Government (Scotland) Act 1973, be taken in private:-

7.         Local Authority Trading Company - Report by Director of Social Care and Wellbeing

 

The Council resolved:-

(i)                 in terms of Section 50(B)(4)(b) of the Local Government (Scotland) Act 1973, to agree that items 6 and 7 were matters of urgency and required to be considered this day (Articles 7 and 8 of this minute refer); and

(ii)               in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973, to exclude the press and public from the meeting during consideration of item 7 (Article 8 of this minute refers) so as to avoid disclosure of exempt information of the class described in paragraph 11 of Schedule 7(A) of the Act.

The Council had before it a joint report by the Director of Corporate Governance and the Director of Housing and Environment which provided members with information to allow the setting of the rent level for the financial year 2012/13 as well as provisional rent levels for the financial years 2013/14 and 2014/15, explaining that this would allow a capital programme for 2012/13 to be set as well as a provisional programme for 2013/14 and 2014/15.

 

The report recommended:-

that the Council -

(a)              consider and determine any adjustments it may wish to make to the draft 2012/13 HRA and thereby:-

(b)              determine the average weekly unrebated rents for municipal houses to take effect from Monday 2^nd April 2012 taking into consideration the Scottish Housing Quality Standard Delivery Plan, the Council House New Build Programme, the outcomes of the 2002 Tenants Referendum and the annual rent consultation;

(c)               determine the level of revenue contribution to the Housing Capital budget for 2012/13 as well as a provisional contribution for the subsequent two financial years;

(d)              determine the level of working balances that should be retained to meet future contingencies;

(e)              determine the level of miscellaneous rents and service charges, including heat with rent;

(f)                 agree other adjustments it may wish to make to the draft HRA for the financial years 2012/13 to 2014/15; and

(g)              set a capital programme for the financial year 2012/13 based on the rent strategy adopted as well as an indicative level of programme for the financial years 2013/14 and 2014/15.

 

Councillor Malone addressed the meeting in the manner reproduced in Appendix A to this minute and moved, seconded by Councillor Dunbar:-

            That the Council:-

(a)          agree an increase of 4.4%, or £2.87 per week, for unrebated rents for municipal houses to take effect from Monday 2^nd April 2012 taking into consideration the Scottish Housing Quality Standard Delivery Plan, the Council House New Build Programme and the annual rent consultation;

(b)          approve, for 2012/13, £16.8million by way of a revenue contribution to the Housing Capital budget;

(c)          approve the level of miscellaneous rents and service charges, including heat with rent, as set out in Appendix 1 to the report;

(d)          instruct the Head of Finance to maintain working balances at 5% of gross spend or £3.9million;

(e)          set a capital programme for the financial year 2012/13 based on the rent strategy above of £47million before slippage; and

(f)            set an indicative rent increase for 2013/14 and 2014/15 of 4.4% to ensure the long term financial viability of the HRA with an annual review period.

 

Councillor Donnelly moved as an amendment, seconded by Councillor Leslie:-

            That the Council:-

(a)          agree an increase of 7.8%, or £5.09 per week, for unrebated rents for municipal houses to take effect from Monday 2^nd April 2012 taking into consideration the Scottish Housing Quality Standard Delivery Plan, the Council House New Build Programme, the outcomes of the 2002 Tenants Referendum and the annual rent consultation;

(b)          approve, for 2012/13, £18.2million by  ...  view the full minutes text for item 2.

The Council had before it a report by the Director of Corporate Governance which provided details of the budget included in the 2012/13 General Fund budget relating to the NESPF, the cost of which was based on the Council’s statutory obligation to administer the scheme and was met by the NESPF.

 

The report recommended:-

that the Council -

(a)              note the provision contained within the Council’s General Fund budget for 2012/13; and

(b)              instruct the Head of Finance to recover the actual cost from the NESPF.

 

The Council resolved:-

(i)                 to approve the recommendations; and

(ii)               to thank Joanne Hope, former Pensions Manager who had now left the Council, for her excellent service, and to wish her well in her future endeavours.

The Council had before it a report by the Director of Corporate Governance which presented the draft Common Good budget for 2012/13.

 

The report recommended:-

that the Council -

(a)              approve the Common Good budget for 2012/13 as detailed in Appendix 1 to the report;

(b)              consider the item referred to the budget process in Appendix 3 to the report;

(c)               instruct the Head of Finance to undertake a review of the level of cash balances that should be retained for a long term financial strategy, and report back to Council at an appropriate time; and

(d)              instruct the Head of Finance to report back to Council on a proposed five year budget, taking account of the cash balance strategy to be adopted.

 

The Council resolved:-

(i)                 to approve an additional £50,000 for appropriate community events to celebrate the Queen’s Diamond Jubilee;

(ii)               to instruct officers to report on the re-instatement of the Crematorium bus service;

(iii)             to approve £25,000 in grant funding to sports clubs for young people to purchase small items of sports equipment; and

(iv)             to otherwise approve the recommendations.

The Council had before it (1) a report by the Director of Corporate Governance which provided members with information to allow the setting of Council Tax levels for the financial year 2012/13 as well as provisional Council Tax levels for the financial years 2013/14 and 2014/15, explaining that this would allow a capital programme for 2012/13 to be set as well as a provisional programme for future years; and (2) a further report by the Director of Corporate Governance which set out, for approval, a proposed three year funded capital programme (and revenue financed projects) which could be accommodated within the 2012/13 - 2014/15 budget process.

 

The General Fund Revenue Budget report recommended:-

that the Council -

(a)              approve the budget as at Appendix 1 to the report;

(b)              agree to the budget amendments set out in Appendix 2 to the report;

(c)               note the position with reserves and provisions in Appendix 3 to the report;

(d)              approve the Council’s 5 Year Business Plan contained within Appendix 4 to the report;

(e)              note the Priority Based Budget savings approved at Council on 14^th December 2011 as at Appendix 5 to the report (and summarised in Appendix 6 to the report);

(f)                 agree the recommendation by the Head of Finance to retain working balances of 2.5% or approximately £11million;

(g)              freeze Council Tax levels for the financial year 2012/13 at 2011/12 levels; and

(h)               agree to the terms set out in the letter at Appendix 7 to the report from the Cabinet Secretary for Finance, Employment and Sustainable Growth.

 

The Non Housing Capital Programme report recommended:-

that the Council -

(a)              approve the three year proposed funded capital programme contained within the report (and revenue financed projects) which could be accommodated within the 2012/13 - 2014/15 budget process; and

(b)              instruct officers to submit a report to a suitable meeting of Council on the alternative funding sources identified within the report with a full options appraisal of each stream, noting that it was likely that such an appraisal would also look at a combination of these sources as funding mechanisms going forward.

 

Councillor McCaig moved, seconded by Councillor Noble:-

            That the Council -

(a)          approve the budget as at Appendix 1 below;

(b)          agree to the budget amendments set out in Appendix 2 below;

(c)          agree the recommendation by the Head of Finance to retain working balances of 2.5% or approximately £11million;

(d)          freeze Council Tax levels for the financial year 2012/13 at 2011/12 levels;

(e)          agree to the terms set out in Appendix 7 to the report;

(f)            approve the 5 Year Business Plan attached as Appendix 4 to the report subject to the above amendments;

(g)          instruct the Director of Corporate Governance to prepare a report for the Finance and Resources Committee on 15^th March 2012 detailing the progress to date on the Corporate Governance Alternative Delivery Model and whether this scheme should be progressed;

(h)          instruct officers to enter into discussions with Sport Aberdeen and the  ...  view the full minutes text for item 5.

Councillor McCaig advised that this was Annette Bruton’s last meeting as Director of Education, Culture and Sport before she left the Council to take up the post of Chief Executive of the Care Inspectorate. Councillor McCaig thanked Annette for her excellent service to the Council during her two and a half years in post and wished her well in her new role. Councillor McCaig’s comments were echoed by a number of other members.

 

The Council resolved:-

to concur with the remarks of Councillor McCaig.

The Council had before it a report by the Director of Corporate Governance which provided information in relation to the Prudential Code indicators to be set for the financial years 2012/13 to 2014/15 as required by Part 7 of the Local Government (Scotland) Act.

 

The report recommended:-

that the Council -

(a)              consider the information contained within the report and set the Prudential indicators for the financial years 2012/13 to 2014/15, based on the approved budgets set to date as per Appendix 1 to the report; and

(b)              instruct the Head of Finance to monitor the indicators and report back to Council on the position where appropriate.

 

The Council resolved:-

to approve the recommendations based on the approved budgets set this day.

In accordance with the decision recorded under Article 1 of this minute, the following item of business was considered with the press and public excluded.

With reference to Article 16 of the minute of meeting of the Social Care and Wellbeing Committee of 2^nd February 2012, the Council had before it, by way of remit, a report by the Director of Social Care and Wellbeing Committee which sought approval to proceed to the next stage of the project plan to implement a Local Authority Trading Company (LATC) to provide adult social care services.

 

The report recommended:-

(a)              that Social Care and Wellbeing proceed with implementation of the LATC in accordance with the timescales set out in the project plan;

(b)              that a review of progress is undertaken in April 2012 and reported to the Social Care and Wellbeing Committee; and

(c)               that a Transition Plan is submitted to Council in autumn 2012 seeking final approval to transfer staff and services to the LATC.

 

The Social Care and Wellbeing Committee had resolved:-

to recommend to Council approval of the recommendations in the report, with an amendment to recommendation (b) as follows: “to agree that a review of progress is undertaken in April 2012 by the Project Board, and reported to the Social Care and Wellbeing Committee at its first meeting after the election”.

 

The Council resolved:-

to approve the recommendation of the Social Care and Wellbeing Committee.

- PETER STEPHEN, Lord Provost.

APPENDIX A

 

BUDGET SPEECH 2012/13

 

Lord Provost and Members of Aberdeen City Council, I am pleased to present the administration’s proposals for the 2012/13 Housing Revenue Account (HRA) and the Housing Capital Account.

 

Housing investment and service remains a priority for this administration and sustaining a sound financial basis for delivering our Housing Landlord responsibilities and objectives remains a priority.  Efficient Management of our housing assets and other resources allows us to continue with confidence to develop the Housing Revenue Account and Housing Capital budgets for financial years 2012/13 and indicative programmes for years 2013/14 and 2014/15. 

 

During the current year work carried out by officers on behalf of this administration has led to the development of a new 30 year Housing Revenue Account business plan which provides the basis for decision making both now and in the future with regard to investment in the current housing stock and the potential for additional housing as well as the income requirements to deliver this. This allows us to maintain our goal to achieve a sustainable financial plan and deliver the Council’s commitments to improving Service and the quality of our homes. This investment has allowed us to continue to provide our tenants with warm modern homes and has created and sustained employment in the construction and manufacturing industry both in Aberdeen and throughout the country. 

 

This financial year saw the completion of our phase one developments for new build at Hayton Road, Byron Court and Rorie Court.  The phase two development at Marchburn is due for completion at the end of February 2012 which will provide an additional 35 affordable family homes to rent in the city.  Phase three of our new build programme is on track to complete by the end of April 2012.  A total of 151 new build highly sustainable and quality homes will be available as a result of the three phases of this new build programme.   

 

We continue to work closely with officers to identify ways of delivering better services, and houses for our tenants.  A great deal has been achieved over the last nine years and much more still requires to be done both in terms of financial investment and service improvement. Housing plays a key role in providing stability for families and is fundamental to the economic success of this city.   As such therefore it is right that we give housing investment within the city significant priority. 

 

In setting the rent level for the financial year 2012/13, as well as the provisional levels for 2013/14 and 2014/15 we have carefully balanced the need for continuing financial investment in the houses as well as ensuring we deliver our services in as efficient and effective way as possible. 

 

The administration is aware that during the current economic climate families are facing real pressures on their family budgets.  In line with previous years of practice by this administration we have sought the views of our tenants regarding maintaining our current rent policy at inflation plus 1%. 

 

Of the tenants who responded to the question 49% agreed with the continuation of the policy and 51% either disagreed or did not know.

 

Based on November’s figures inflation plus 1% would mean a rent increase of 6.3% for 2012/2013 (£4.11) however recognising the pressures that family budgets are under, work carried out by officers, based on the Bank of England forecast of inflation over the next 12 months suggests that this level of increase over the period will be significantly above our requirements to maintain the Housing Revenue Account business plan.  To that end therefore this administration is recommending that a rent increase of 4.4% is set for this financial year and this should be maintained over the next two financial years also, subject to inflation remaining lower.  I have asked officers to ensure that we continue to monitor closely inflation over the coming 12 months, and any adjustments necessary in years 2 and 3 of this budget to future rent increases will be recommended as part of that budget setting process.  We believe that this increase will still compare favourably with other local authorities and the city’s RSLs, will ensure there are adequate resources to maintain the Housing Revenue Account business plan given the likely change to inflation over the next 12 months, but fundamentally this will allow families some financial respite.  

 

This administration is committed to ensuring that our staff will offer every assistance to tenants to ensure that where appropriate full housing benefit and other benefit take up is both encouraged and achieved.  Changes agreed by this administration this year has resulted in an increase to front line housing staff, available to support tenants, and to carry out an increasing number of visits to tenants in their own homes.  This approach is designed to maximise the amount of early intervention activity by staff, to support families before they encounter major financial difficulties.  

 

In setting a three year rent strategy the Council must consider the level of capital investment we need in order to continue to improve the overall housing conditions in the city and to complete the current new build programme. 

 

This work confirmed that as an authority our rent levels compared well with other cities and our supervision and management costs are significantly below the average for Scottish local authorities and in particular other cities in the country. 

 

We will continue to seek ways of increasing value to our tenants through prudent management of vacancies, increasing performance on rent arrears and improving void performances.

 

I am also proposing that the miscellaneous rents and other service charges as outlined on pages 20 to 24 of Appendix 1 to the Council be approved.

 

The proposed heating charge increase represents good value for the residents who benefit from our heat with rent scheme. As members will be aware for the general population over the past few years, electricity and gas prices have typically shown a real increase of up to 30%

 

The proposal put before you today for the Council’s Heat with Rent propertiesequates to an increase of between 5.71% and 8.6%. This would still represent good value for money, and helps to relieve fuel poverty.

 

A similar increase would be required for the next two years to cover costs.

 

However it should be noted that a review of consumption costs will be required each year as only the electric contract is fixed for four years.

 

To ensure that the Council can deliver the priorities for its housing stock and tenants we are proposing that the budget includes a revenue contribution to the Housing Capital programme for 2012/13 of £17.3 million and indicative levels of £17.7 million for 2013/14 and £18.4 million for 2014/15. 

 

This combined with additional borrowing means that the level of capital investment I recommend will be £47 million for 2012/13 and an indicative level of £44.45 million for 2013/14 and £39.75 million for 2014/15.  In addition we would propose that working balances should be maintained at 5% of gross expenditure with a minimum balance of £3.9 million for 2012/13. 

 

During the current financial year significant progress has been made in redesigning the Housing Service, to make it fit for the 21^st century.  The Housing Management Service Modernisation programme will continue through the coming year and beyond and will deliver real benefits for tenants and the Council. During 2012 the latest phase of redesigning our area office staff structures will reduce the patch sizes for each housing assistant from 710 per housing officer to 540, which will enable a continuing focus on:-

 

• Improving rent arrears performance
• Better management of voids
• An increase in support for tenants to help them sustain their tenancy
• A stronger focus on estate management
• Increased performance in responding to tenant complaints
• Ensure the city meets its responsibilities with regard to the new Tenants Charter

 

Whilst not specifically the responsibility of the HRA service, I would like to make a comment about the homeless service being provided by Aberdeen City. 

 

This administration has made a significant commitment to improving the operations and delivery of our homeless service. Specifically the Council has made the commitment for a significant investment in the quality and number of temporary accommodation flats available for homeless persons, the level of support and advice which is offered to them, and most significantly a major initiative to support a strategy of prevention of homelessness.

 

This work has reduced significantly the number of presentations, to the Council, by homeless persons.  The increase in number of temporary flats available from the Council for homeless persons, together with the housing advice and support we provide has not only improved the service for service users but has reduced significantly the costs to this Council of the use of bed & breakfast accommodation, particularly where this has been inappropriate for the client group requiring help with accommodation.  

 

I will now move on to our proposed Housing Capital programme. Our primary concern is to ensure that all of our tenants’ homes meet the Scottish Housing Quality Standard by 2015. I am pleased to be able to say that we have achieved our target of 59% during 2011 and by the end of the next financial year we are confident we will achieve our milestone of 71% of the Council’s housing stock meeting the Scottish Housing Quality Standard.

 

In 2012/13 we will commence the installation of high efficiency low carbon emission gas fired combined heat and power schemes for 7 high rise blocks in the Seaton area. In addition we will commence the installation of a district heating system which will serve 3 high rise blocks in the Torry area.  This will provide much welcomed affordable warmth to our tenants in a time of continuing high energy prices.

 

This work will be in addition to restarting our normal heating work following protracted delays caused by the legal challenge to the award of the heating framework tender in 2009. We anticipate that nearly 1500 homes will be provided with high efficiency gas heating systems through this programme in the coming financial year.

 

In 2012/13 we commenced the preparation of a major programme of over cladding involving 3 high rise blocks in the Seaton area.  This work will be concluded during the 2012/13 financial year.   In addition to this we also plan to commence the over cladding of another 3 high rise blocks in the Torry area.  This will not only help to eradicate water penetration in these blocks but will have the added benefit of increasing insulation to the external walls, thereby driving down energy use and fuel costs to the residents.

 

All of the above will therefore assist us to continue towards our target of ensuring that the energy rating of the Council housing stock is well above the current SHQS minimum of 5.0.  During 2012/13 we intend to improve our SHQS compliance during the year by modernising the kitchens and/or bathrooms in approximately 2700 homes, replacing windows in 177 homes, rewiring 885 homes and improving security in up to 400 homes through the installation of crime check doors.

 

This is an ambitious and challenging capital programme that will produce great benefits for residents in our housing estates.

 

Housing New Build Programme

 

During the next financial year we will have effectively completed our current new build programme.  However in addition to our own new build programme the Council has supported the delivery of 41 properties through the National Housing Trust scheme and we are currently involved in a second procurement phase for a further 50 properties.  This administration will continue to seek the support both from Scottish Government and also developers for the delivery of additional housing within the city of Aberdeen. 

 

Lord Provost and Members, this is a budget, which will continue to raise the standards across the city. It will accelerate our housing service modernisation and our housing investment programme.

 

It will bring about the improvement in the way we provide the service to our tenants.

 

I would also like to take this opportunity to thank all staff whose hard work throughout the year has enabled us to continue to raise the standards across the city for our tenants.

 

Most of all they have helped us improve the quality of life for our tenants

 

Councillor Aileen Malone

Convener Housing & Environment                                   February 2012