Agenda item
Draft Housing Revenue Account (HRA) Budget and Housing Capital Budget 2013/14 to 2015/16 - CG/12/1023
Minutes:
With reference to Article 14 of the minute of meeting of the Finance and Resources Committee of 6 December 2012, 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 2013/14 as well as provisional rent levels for the financial years 2014/15 and 2015/16, explaining that this would allow a capital programme for 2013/14 to be set as well as a provisional programme for 2014/15 and 2015/16.
The report recommended:-
that the Finance and Resources Committee consider the draft Housing Revenue Account budget and refer the report to Council on 19 December 2012 for:-
(a) approval of the budget as attached as Appendix 1;
(b) approval of the weekly unrebated rents for municipal houses, as detailed in Appendix 1, to take effect from Monday 1 April 2013;
(c) approval of the level of revenue contribution to the Housing Capital budget for 2013/14 as well as a provisional contribution for the subsequent two financial years as detailed in Appendix 1 of the report;
(d) approval of the recommendation by the Head of Finance to increase working balances from 5% to 10% over a three year period to meet future contingencies;
(e) approval of the continuation of the practice that all capital receipts, from the disposal of Council houses, be used to repay debt for 2013/14 and future years;
(f) approval of the level of miscellaneous rents and service charges, including Heat with Rent as detailed in Appendix 1;
(g) approval of other adjustments Council might wish to make to the draft HRA for the financial years 2013/14 to 2015/16; and
(h) setting of a capital programme for the financial year 2013/14 based on the rent strategy adopted as well as the indicative level of programme for the financial years 2014/15 and 2015/16.
The Finance and Resources Committee had referred the report simpliciter to Council.
The Council resolved:-
(i) to approve the budget as detailed in Appendix 1 below;
(ii) to approve an average weekly rent increase of 3.6% to take effect from Monday 1 April 2013;
(iii) to approve a revenue contribution of £21.7million to the Housing Capital budget for 2013/14;
(iv) to agree the recommendation by the Head of Finance to retain adequate working balances to meet future contingencies with a view to increasing this to 10% over the next three financial years;
(v) to agree the continuation of the practice that all capital receipts, from the disposal of Council houses, continue to be used to repay debt for 2013/14 and future years;
(vi) to approve the level of miscellaneous rents and service charges, including Heat with Rent, as detailed in Appendix 2 below; and
(vii) to set a capital programme of £41.5million for the financial year 2013/14 based on the rent strategy.
Appendix 1
|
Housing Revenue Account |
|
|
|
|
|
Budget |
Out-turn |
Budget |
|
|
2012/13 |
2012/13 |
2013/14 |
|
|
|
|
|
|
|
£000 |
£000 |
£000 |
|
|
|
|
|
|
Premises Costs |
|
|
|
1 |
Rates |
3 |
3 |
3 |
2 |
Rent - Other |
135 |
115 |
138 |
3 |
Repairs and Maintenance |
23,264 |
23,092 |
22,042 |
4 |
Maintenance of Grounds |
2,560 |
2,866 |
3,045 |
5 |
Gas |
714 |
714 |
674 |
6 |
Electricity |
2,361 |
2,361 |
2,420 |
7 |
Cleaning Service |
476 |
476 |
542 |
8 |
Security Service |
444 |
372 |
372 |
9 |
Window Cleaning |
19 |
19 |
19 |
10 |
Refuse Collection |
240 |
320 |
325 |
11 |
Cleaning - Sheltered Housing |
475 |
449 |
453 |
12 |
Premises Insurance |
56 |
56 |
57 |
13 |
Other Property Costs - Council Tax |
115 |
122 |
122 |
|
|
30,862 |
30,965 |
30,212 |
|
|
|
|
|
|
Administration Costs |
|
|
|
14 |
Downsizing Grants/Direct Debit Incentives |
52 |
15 |
52 |
15 |
Legal Expenses |
222 |
201 |
201 |
16 |
Office Tel / Rent |
88 |
88 |
88 |
17 |
Former Tenants Arrears |
1,379 |
1,379 |
1,379 |
18 |
Charges - Services Admin & Management. |
8,556 |
7,968 |
8,582 |
19 |
General Consultancy |
55 |
55 |
55 |
20 |
Training for Front Line Staff |
100 |
100 |
100 |
21 |
Benefits Staff |
94 |
94 |
95 |
22 |
Charges - Tenants Participation |
238 |
238 |
206 |
23 |
Charges for Environmental Health |
213 |
227 |
227 |
|
|
10,997 |
10,365 |
10,984 |
|
|
|
|
|
|
Supplies & Services |
|
|
|
24 |
Provision of Meals |
177 |
166 |
168 |
25 |
Equipment Purchase |
55 |
55 |
55 |
26 |
Television Licence |
5 |
5 |
5 |
27 |
Integrated Housing System |
338 |
338 |
314 |
|
|
575 |
564 |
542 |
|
|
|
|
|
|
Agencies |
|
|
|
28 |
Mediation Service |
98 |
98 |
98 |
29 |
Energy Advice |
81 |
81 |
81 |
30 |
Citizens Advice Bureau |
14 |
14 |
14 |
31 |
Disabled Persons Housing Service |
38 |
38 |
38 |
|
|
231 |
231 |
231 |
|
Housing Revenue Account |
Budget |
Out-turn |
Budget |
|
|
2012/13 |
2012/13 |
2013/14 |
|
|
£000 |
£000 |
£000 |
|
|
|
|
|
|
Transfer Payments |
|
|
|
32 |
Aberdeen Families Project |
400 |
400 |
414 |
33 |
Loss of Rent - Council Houses |
722 |
754 |
722 |
34 |
Loss of Rent - Garages, Parking etc |
153 |
211 |
211 |
35 |
Loss of Rent - Modernisation Works |
86 |
50 |
50 |
36 |
Supporting People Contribution |
406 |
406 |
406 |
37 |
CFCR |
17,675 |
21,284 |
21,748 |
|
|
19,442 |
23,105 |
23,551 |
|
|
|
|
|
|
Capital Financing Costs |
|
|
|
38 |
Loans Fund Instalment |
4,260 |
3,168 |
3,903 |
39 |
Loans Fund Interest |
10,819 |
8,889 |
9,559 |
40 |
Heating Leasing Payment |
131 |
131 |
131 |
|
|
15,210 |
12,188 |
13,593 |
|
|
|
|
|
|
Expense Total |
77,317 |
77,418 |
79,113 |
|
|
|
|
|
|
Income |
|
|
|
41 |
Government Grant - General |
(420) |
(234) |
(234) |
42 |
Ground Rentals |
(25) |
(25) |
(27) |
43 |
Dwelling Houses Rent Income |
(73,144) |
(73,748) |
(76,220) |
44 |
Housing - Heat with Rent Income |
(1,534) |
(1,459) |
(1,459) |
45 |
Housing - Garages Rent Income |
(1,096) |
(1,087) |
(1,087) |
46 |
Housing - Parking Spaces Rent |
(167) |
(187) |
(187) |
47 |
Housing - Insurance Income |
(8) |
(8) |
(2) |
48 |
Housing - Other Service Charge |
(479) |
(489) |
(489) |
49 |
Legal Expenses |
(323) |
(260) |
(260) |
50 |
Revenue Balance Interest |
(121) |
(121) |
(148) |
|
|
|
|
|
|
Income Total |
(77,317) |
(77,618) |
(80,113) |
|
|
|
|
|
|
Net Expenditure |
0 |
0 |
(1,000) |
Appendix 2
Miscellaneous Rents
Heat with Rent - 48 week basis |
|
|
|
Previous |
Proposed |
Gas Heated Properties |
£ |
£ |
Bedsits |
8.25 |
9.05 |
1 bedroom flats |
8.95 |
9.85 |
2 bedroom flats |
9.25 |
10.25 |
3 bedroom flats |
10.35 |
11.45 |
|
|
|
Electrically Heated Properties |
|
|
Bedsits |
9.25 |
10.05 |
1 bedroom flats |
9.95 |
10.85 |
2 bedroom flats |
10.65 |
11.65 |
3 bedroom flats |
11.35 |
12.45 |
|
|
|
CHP Properties |
|
|
All 1 bedroom properties |
8.90 |
9.80 |
All 2 bedroom properties |
9.40 |
10.40 |
All 3 bedroom properties |
10.10 |
11.20 |
|
|
|
ABERDEEN CITY COUNCIL HOUSING REVENUE ACCOUNT |
|
|
|
|
|
|||||
|
|
|
|
|
||||||
Proposed Increase to be included in the HRA budget - Miscellaneous Rents |
|
|||||||||
|
|
2013/2014 |
|
|
|
|||||
|
|
Current |
Proposed |
Increase |
Percentage |
Additional |
||||
|
|
Rental |
Rental |
Per Week |
Increase |
Income |
||||
|
Miscellaneous Increases |
£ |
£ |
£ |
% |
£ |
||||
|
Garages |
9.10 |
10.00 |
0.90 |
9.89 |
89,078 |
||||
|
Denburn and West North Street Spaces |
4.40 |
4.55 |
0.15 |
3.41 |
4,514 |
||||
|
Garages Sites |
3.70 |
3.85 |
0.15 |
4.05 |
1,771 |
||||
|
Car Ports |
4.10 |
4.25 |
0.15 |
3.66 |
1,037 |
||||
|
Car Parking Spaces - Local Residents |
3.40 |
3.40 |
0 |
0 |
0 |
||||
|
Parking Spaces Non Local Residents |
35.00 |
35.00 |
0 |
0 |
0 |
||||
|
Window Cleaning |
0.85 |
0.85 |
0 |
0 |
0 |
||||
|
Meals at Denmore & Kingswood |
35.00 |
35.00 |
0 |
0 |
0 |
||||
|
Mortgage Reference Fees |
60.00 |
62.00 |
2.00 |
3.33 |
56 |
||||
|
Guest Rooms |
10.00 & 15.00 |
10.00 &15.00 |
0 |
0 |
0 |
||||
|
Owners Administration fees |
16.13 |
38.59 |
22.46 |
139.24 |
11,544 |
||||
|
|
|
|
|
|
108,001 |
||||
|
|
|
|
|
|
|
||||
|
General Services |
|
|
|
|
|
||||
|
Housing - Homeless Account |
|
|
|
|
|
||||
|
Clinterty Caravan Site |
79.00 |
82.00 |
3.00 |
3.80 |
5,040 |
||||
|
|
|
|
|
|
5,040 |
||||
|
|
|
|
|
|
|
||||
|
Accommodation Units (Grant Funded) |
|
|
|
|
|
||||
|
Adult (first 2) |
54.00 |
56.00 |
2.00 |
3.70 |
27,500 |
||||
|
Child |
36.00 |
37.00 |
1.00 |
2.78 |
6,875 |
||||
|
|
|
|
|
|
34,375 |
||||
Supporting documents: