Agenda item

Draft Housing Revenue Account (HRA) Budget and Housing Capital Budget 2014/15 to 2018/19 - CG/13/117

Meeting of Council, Wednesday, 18th December, 2013 10.30 am (Item 20.)

Minutes:

With reference to Article 15 of the minute of meeting of the Finance, Policy and Resources Committee of 5 December 2013, 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 2014/15 as well as the provisional rent levels for the financial years 2015/16 to 2018/19, explaining that this would allow a capital programme for 2014/15 to be set as well as a provisional programme for 2015/16 to 2018/19.

The report recommended:-

that the Finance, Policy and Resources Committee consider the draft HRA Budget and refer it to Council on 18 December 2013 to:-

(a) approve the budget as attached as appendix 1 to the report;

(b) approve the weekly unrebated rents for municipal houses, as detailed in appendix 1 to the report, to take effect from Monday 7 April 2014;

(c) approve the level of revenue contribution to the Housing Capital budget for 2014/15 as well as a provisional contribution for the subsequent four financial years as detailed in appendix 1 to the report;

(d) continue to increase the level of working balances to 10% to meet future contingencies;

(e) agree the continuation of the practice that all capital receipts, from the disposal of Council houses under the right to buy, continue to be used to repay debt for 2014/15 and future years;

(f) approve the level of miscellaneous rents and service charges, including Heat with Rent as detailed in appendix 1 to the report;

(g) set a capital programme for the financial year 2014/15 based on the rent strategy adopted as well as the indicative level of programme for the financial years 2015/16 to 2018/19;

(h) in order for work to commence on the capital programme, approve as estimated expenditure in terms of Standing Order 1(3) (of the Council’s Standing Orders relating to Contracts and Procurement) the sums shown against each heading of the Housing Capital budget set out in appendix 1 to the report; and

(i) authorise the Director of Housing and Environment to undertake or instruct appropriate procedures to procure the work referred to in appendix 1 for the capital programme and award contracts thereto.

The Finance, Policy and Resources Committee had referred the report simpliciter to Council.

Councillor Cooney moved, seconded by Councillor Thomson:-

That the Council -

(1) approve the budget as amended by the following proposals;

(2) set the weekly unrebated rents to increase by 3.5% from Monday 7 April 2014;

(3) approve the capital expenditure funded by current revenue contribution of £21,924,000; and

(4) approve recommendations (d) to (i) as contained within the report.

	Housing Revenue Account
	Draft 2014/15 Budget	Budget	Out-turn	Budget
		2013/14	2013/14	2014/15
				3.5%
		£000's	£000's	£000's

	Premises Costs
1	Rates	3	19	19
2	Rent – Other	138	138	141
3	Repairs and Maintenance	22,042	22,042	22,407
4	Maintenance of Grounds	3,045	3,045	3,075
5	Gas	674	674	1,014
6	Electricity	2,420	2,420	2,512
7	Cleaning Service	542	500	495
8	Security Service	372	300	376
9	Window Cleaning	19	10	24
10	Refuse Collection	325	325	328
11	Cleaning – Sheltered Housing	453	504	499
12	Premises Insurance	57	57	57
13	Other Property Costs - Council Tax	122	201	201
		30,212	30,235	31,148

	Administration Costs
14	Downsizing Grants/Direct Debit Incentives	52	20	52
15	Legal Expenses	201	201	201
16	Office Tel / Rent	88	88	88
17	Former Tenants Arrears	1,379	1,800	2,000
18	Charges - Services Admin & Management.	8,582	8,096	8,657
19	General Consultancy	55	55	85
20	Training for Front Line Staff	100	100	100
21	Benefits Staff	95	95	141
22	Charges - Tenants Participation	206	206	208
23	Charges for Environmental Health	227	227	227
		10,985	10,888	11,759

	Supplies & Services
24	Provision of Meals	168	192	194
25	Equipment Purchase	55	0	0
26	Television Licence	5	4	5
27	Integrated Housing System	314	314	295
		542	510	494

	Agencies
28	Mediation Service	98	98	99
29	Energy Advice	81	81	82
30	Citizens Advice Bureau	14	14	14
31	Disabled Persons Housing Service	38	38	39
		231	231	234



	Housing Revenue Account	Budget	Out-turn	Budget
	Draft 2014/15 Budget	2013/14	2013/14	2014/15
		£’000	£’000	£’000
				3.5%
	Transfer Payments
32	Aberdeen Families Project	414	414	418
33	Loss of Rent - Council Houses	722	1,157	900
34	Loss of Rent - Garages, Parking etc.	211	271	218
35	Loss of Rent - Modernisation Works	50	50	100
36	Supporting People Contribution	406	406	406
37	CFCR	22,034	22,175	21,924
		23,837	24,473	23,966

	Capital Financing Costs
38	Loans Fund Instalment	3,903	4,580	5,228
39	Loans Fund Interest	9,559	8,658	9,026
40	Heating Leasing Payment	131	100	0
		13,593	13,338	14,254

	Expense Total	79,400	79,675	81,855

	Income
41	Government Grant - General	(234)	(234)	0
42	Ground Rentals	(27)	(27)	(27)
43	Dwelling Houses Rent Income	(76,220)	(76,584)	(79,017)
44	Housing - Heat with Rent Income	(1,649)	(1,649)	(1,649)
45	Housing - Garages Rent Income	(1,179)	(1,136)	(1,136)
46	Housing - Parking Spaces Rent	(192)	(180)	(180)
47	Housing - Insurance Income	(2)	(2)	(2)
48	Housing - Other Service Charge	(489)	(500)	(489)
49	Legal Expenses	(260)	(225)	(225)
50	Revenue Balance Interest	(148)	(138)	(130)

	Income Total	(80,400)	(80,675)	(82,855)

	Net Expenditure	(1,000)	(1,000)	(1,000)

Draft Housing Capital Budget 2014/15 to 2018/19
		2014/15	2015/16	2016/17	2017/18	2018/19
	Project
		£000	£000	£000	£000	£000

	SCOTTISH HOUSING QUALITY STANDARDS

1	Compliant with the tolerable standard
1.1	Major Repairs-	1,000	1,000	1,000	1,000	1,000
	Roofs Renewal/Gutters/RWP/Roughcast
	Undertaking large scale repairs to Roofs/Gutters/RWP/Roughcast
		1,000	1,000	1,000	1,000	1,000

2	Free from Serious Disrepair
2.1	Primary Building Elements
	Structural Repairs Multi Storey	7,380	8,400	3,416	1,859	2,000
	Multi Storey blocks are surveyed on a 5-7 year cycle to identify any works required to the structure of the buildings in order to keep the buildings
	safe and prolong their life.
	Structural Repairs General Housing	3,000	2,000	1,500	1,500	1,500
	Structural works carried out in order to keep the building stable and structurally sound.

	Secondary Building Elements
2.2	Upgrading Of Flat Roofs General	350	350	300	300	250
	Replacement of existing roof covering and upgrading of insulation to meet current building regulations.
2.3	Upgrade Flat Roofs Multi Storey	684	718	1,572	1,319	1,385
	Full replacement of the flat roofs and also checking the replacement of roof ventilation as required
2.5	Mono Pitched Types	526	839	881	925	979
	Replacement of the external render of the building, replacement of gutters and downpipes, environmental works
2.6	Window Replace General	1,251	480	2,638	2,720	1,249
	A rolling programme of double glazing where previously single glazing, or replacing existing
	double glazing to meet current standards. This is based on a cyclical programme.
2.7	Window Replace Multi Storey	0	0	0	0	0
	A rolling programme to replace existing double glazing to meet current standards. This is based on a cyclical programme.
2.8	Balcony Storm Doors	60	0	0	0	0
	Replacement of existing doors with more secure, solid doors
2.9	Balcony Glass Renewal - Multi Storey	160	0	0	0	0
	Replacement of existing balcony glazing on a cyclical basis
		13,411	12,787	10,307	8,623	7,363





		2014/15	2015/16	2016/17	2017/18	2018/19
		£000	£000	£000	£000	£000
3	Energy Efficient

	Effective insulation
3.1	Energy Efficiency – General Houses	100	100	100	100	100
3.2	General Houses Loft Insulation
	Installation of loft insulation where there is none previously or the topping	165	196	185	231	185
	up of existing insulation to comply with current building regulations.
	Efficient Heating
3.3	Heating Systems Replacement	5,314	5,442	6,088	6,138	6,677
	Replacement of boiler/whole system as deemed necessary.
3.4	Medical Need Heating	0	0	0	0	0
	Installation of gas/electric heating depending on the medical assessment.
	This can be installing a completely new system, modifying or extending an existing system.
3.5	Energy Efficiency Major Blocks	4,400	3,750	3,938	4,134	4,341
	Contribution to Aberdeen Heat & Power for the creation of Combined Heat & Power Plants
3.6	Energy Efficiency Sheltered	350	250	250	200	200
	Introduction of energy efficiency measures in extra care housing such as new or upgraded heating systems.
	Additional Energy Efficiency measures
3.7	S.C.A.R.F	35	35	35	35	35
	Payment to SCARF for work carried out by them under the Energy Efficiency programme to individual properties. The work carried
	out includes the installation of loft insulation, draught proofing and compact fluorescent bulbs. Also providing tenants with energy efficiency advice and information.
3.8	Solid Wall Insulation	150	150	150	150	150
3.9	Vestibule Doors	0	0	0	0	0
		10,514	9,923	10,746	10,988	11,688

4	Modern Facilities & Services

	Bathroom and Kitchen Condition
4.1	Modernisation Programme	9,728	2,006	1,120	1,691	838
	Replacement of bathrooms and kitchens.
		9,728	2,006	1,120	1,691	838

5	Healthy, Safe & Secure

	Healthy
5.1	Condensation Measures	75	79	83	87	91
	Installation of heating systems and ventilation measures to combat condensation.
	Safe
5.3	Rewiring	1,548	2,906	2,284	1,674	1,906
	Replacement of cabling, fittings and distribution boards as necessary. This work is carried out in every property on a cyclical basis
5.4	Lift Replacement Multi Storey/Major Blocks	600	724	761	799	839
	Replacement of lifts where they are beyond economical repair. This can be full replacement or replacement of specific parts of the lift.
5.5	Smoke Detectors – Common Areas Major Blocks	54	170	159	125	131



		2014/15	2015/16	2016/17	2017/18	2018/19
		£000	£000	£000	£000	£000
	Healthy, Safe & Secure (continued)
5.6	Services	50	50	50	50	50
	Cyclical maintenance/replacement of the following services
	Ventilation Systems, water tanks/pipe work, refuse chutes/chamber, Dry risers systems, Standby Generators
5.7	Entrance Halls/Concierge	50	50	50	50	50
	Provision of security service
5.8	Laundry Facilities	52	50	50	50	50
	Replacement of laundry equipment
5.9	Upgrading of Lighting	39	14	14	15	16
	Installation of lighting controlled by photo cell i.e. switches on and off automatically depending on the level of natural light & installation of lighting in areas where there was none before
	Secure
5.11	Door Entry Systems	48	42	44	46	49
	Installation of door entry and replacement of existing doors where required
5.12	Replace Door Entry Systems - Major Blocks	48	50	53	56	58
	Installation of door entry and replacement of existing doors where required
5.13	Other Initiatives	366	312	147	135	141
	Upgrading of stairs and installation of security doors and door entry systems
		2,930	4,447	3,695	3,087	3,381

	NON SCOTTISH HOUSING QUALITY STANDARDS

6	Community Plan & Single Outcome Agreement
6.1	Housing For Varying Needs	100	0	0	0	0
	New build including extra care housing.
6.2	Community Initiatives	400	400	300	250	250
	Refurbishment of properties or environmental improvements in designated areas.
6.5	Regeneration/Acquisition of Land or Houses	120	0	0	0	0
	Early Action projects linked to Regeneration and Master planning Briefs for Regeneration.
	Acquisition of Land/Houses for the new build programme.
6.6	CCTV – Multi Storey	310	147	154	162	170
	Provision of CCTV for the Multi Storey Service
6.7	Adaptations Disabled	1,250	1,250	1,000	1,000	1,000
	Installation of level access showers, ramps, stair lifts and kitchen adaptations
6.8	Special Initiatives/Barrier Free Housing	150	150	150	150	150
	Provision of specialist facilities or housing for tenants with particular needs i.e. extensions
6.9	Housing For Varying Needs- Amenity/Adaptations	300	75	75	75	75
	Conversion of properties to Amenity Level standard
6.10	Housing For Varying Needs- Extra Care/Adaptations	430	75	75	75	75
	Adaptations required to ensure existing sheltered housing stock meets current standards
6.11	Roads	100	100	100	100	100
	Upgrade of Roads to an adoptable standard
6.12	Paths	100	100	100	100	100
	Formation or upgrading of paths
6.13	Garages	0	0	0	0	0
	Upgrade of Garages
6.14	New Affordable Housing	500	40	0	0	0
		3,760	2,337	1,954	1,912	1,920

		2014/15	2015/16	2016/17	2017/18	2018/19
		£000	£000	£000	£000	£000

7	Service Development

7.1	Conditions Surveys	50	25	25	25	25
	Surveying of Council houses to identify failures against Scottish Housing Quality Standard
7.2	Property Database	50	50	50	50	50
	Various items of IT equipment including hardware and software
7.3	Integrated Housing System	75	75	75	50	50
	Various purchase of PCs and software packages


		175	150	150	125	125

9	Service Expenditure
	Corporate Fees	5,405	4,424	3,961	3,756	3,599
		5,405	4,424	3,961	3,756	3,599

	Gross Programme	46,923	37,074	32,933	31,182	29,914

	Less Slippage	(5,161)	(4,078)	(3,623)	(3,430)	(3,291)

	Net Programme	41,762	32,996	29,310	27,752	26,623


	Financed by :-
	Borrowing	19,303	10,863	6,313	3,252	0
	CFCR	22,459	22,133	22,997	24,500	26,623

	Total Funding	41,762	32,996	29,310	27,752	26,623

Councillor Delaney moved as an amendment, seconded by Councillor Greig:-

That the Council -

(1) approve the budget as attached in appendix 1 of the report;

(2) agree to increase the weekly unrebated rents for municipal houses by 3.5%, to take effect from Monday 7 April 2014, noting that a rent increase of this level was compatible with the long term sustainability of the housing business plan;

(3) approve a revenue contribution to the Housing Capital budget for 2014/15 of £21.924million, as well as a provisional contribution for the subsequent four financial years, as detailed in appendix 1 of the report;

(4) agree to continue to increase the level of working balances to 10% to meet future contingencies;

(5) agree to the continuation of the practice that all capital receipts, from the disposal of Council houses under right to buy, continue to be used to repay debt for 2014/15 and future years;

(6) approve the level of miscellaneous rents and service charges, excluding Heat with Rent, as detailed in appendix 1 of the report;

(7) instruct officers to report back to the Council Budget meeting on 6 February 2014 with recommendations on how the very substantial proposed increases in Heat with Rent might be mitigated;

(8) agree a capital programme for the financial year 2014/15 of £41.762million based on the rent strategy adopted as well as the indicative level of programme for the financial years 2015/16 to 2018/19;

(9) in order for work to commence on the capital programme, approve as estimated expenditure in terms of Standing Order 1(3) (of the Council’s Standing Orders relating to Contracts and Procurement) the sums shown against each heading of the Housing Capital budget set out in appendix 1 to the report; and

(10) authorise the Director of Housing and Environment to undertake or instruct appropriate procedures to procure the works referred to in appendix 1 for the capital programme and award contracts relating thereto.

Councillor Jackie Dunbar advised that she had also prepared an amendment, however it was the same as the motion and therefore she was withdrawing it.

On a division, there voted:-

For the motion (38) - Lord Provost; Depute Provost; and Councillors Allan, Blackman, Boulton, Cameron, Carle, Cooney, Corall, Cormie, Crockett, Dickson, Donnelly, Jackie Dunbar, Lesley Dunbar, Finlayson, Forsyth, Graham, Grant, Ironside, Jaffrey, Kiddie, Laing, Lawrence, MacGregor, McCaig, Malik, May, Milne, Jean Morrison, Nathan Morrison, Noble, Samarai, Sandy Stuart, Taylor, Thomson, Townson and Young.

For the amendment (4) - Councillors Delaney, Greig, Malone and Yuill.

The Council resolved:-

to adopt the motion.

Supporting documents:

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Agenda item

Draft Housing Revenue Account (HRA) Budget and Housing Capital Budget 2014/15 to 2018/19 - CG/13/117

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