Agenda item

With reference to Article 12 of the minute of meeting of the Finance, Policy and Resources Committee of 3 December 2015, the Council had before it a joint report by the Interim Director of Corporate Governance and the Director of Communities, Housing and Infrastructure which provided members with information to allow the setting of the rent level for the financial year 2016/17 as well as provisional rent levels for the financial years 2017/18 to 2020/21, explaining that this would allow a capital programme for 2016/17 to be set as well as a provisional programme for 2017/18 to 2020/21.

The report recommended:-

that the Finance, Policy and Resources Committee consider the draft HRA Budget and refer it to Council on 16 December 2015 to -

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

(b)          approve the weekly unrebated rents for municipal houses, as detailed at appendix 1 to the report, to take effect from Monday 4 April 2016;

(c)          approve the level of revenue contribution to the Housing Capital budget for 2016/17 as well as a provisional contribution for the subsequent four financial years as detailed at 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 right to buy, continue to be used to repay debt for 2016/17 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 2016/17 based on the rent strategy adopted as well as the indicative level of programme for the financial years 2017/18 to 2020/21;

(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 Expenditure budget set out in appendix 1 to the report; and

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

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

Councillor Cooney moved, seconded by Councillor Jean Morrison:-

            That the Council -

(1)      approve the budget as attached to the report subject to the points below;

(2)      approve that the weekly unrebated rents for municipal houses be increased by 1.7%, to take effect from Monday 4 April 2016;

(3)      approve the level of revenue contribution to the Housing Capital budget for 2016/17 at £23.982million as well as a provisional contribution for the subsequent four financial years as detailed in the report;

(4)      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, be used to repay debt for 2016/17 and future years where applicable;

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

(7)      approve the capital programme for the financial year 2016/17 as well as the indicative level of programme for the financial years 2017/18 to 2020/21 as detailed in the report;

(8)      in order for work to commence on the capital programme, to 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 Expenditure budget set out in appendix 1 to the report; and

(9)      authorise the Director of Communities, Housing and Infrastructure to undertake or instruct appropriate procedures to procure the works referred to in the report for the capital programme and award contracts relating thereto.

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

            That the Council -

(1)       approve the budget as attached to the report subject to (3) below;

(2)      approve that the weekly unrebated rents for municipal houses be increased by 1.9%, to take effect from Monday 4 April 2016;

(3)      approve the level of revenue contribution to the Housing Capital budget for 2016/17 at £24.142million as well as a provisional contribution for the subsequent four financial years as detailed in the report;

(4)      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, be used to repay debt for 2016/17 and future years where applicable;

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

(7)      approve the capital programme for the financial year 2016/17 as well as the indicative level of programme for the financial years 2017/18 to 2020/21 as detailed in the report;

(8)      in order for work to commence on the capital programme, to 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 Expenditure budget set out in appendix 1 to the report; and

(9)      authorise the Director of Communities, Housing and Infrastructure to undertake or instruct appropriate procedures to procure the works referred to in the report for the capital programme and award contracts relating thereto.

Councillor Dickson moved as a further amendment, seconded by Councillor Noble:-

            That the Council -

(1)       approve the budget as attached to the report subject to the points below;

(2)      approve that the weekly unrebated rents for municipal houses be increased by 1%, to take effect from Monday 4 April 2016;

(3)      approve the level of revenue contribution to the Housing Capital budget for 2016/17 at £23.923million;

(4)      agree to maintain working balances of £8.407million; 

(5)      agree to the continuation of the practice that all capital receipts, from the disposal of Council houses under right to buy, be used to repay debt for 2016/17 and future years where applicable;

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

(7)      approve the capital programme for the financial year 2016/17 as detailed in the report;

(8)      in order for work to commence on the capital programme, to 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 Expenditure budget set out in appendix 1 to the report;

(9)      authorise the Director of Communities, Housing and Infrastructure to undertake or instruct appropriate procedures to procure the works referred to in the report for the capital programme and award contracts relating thereto;

(10)   instruct the Interim Director of Corporate Governance to undertake a review of the HRA based on a zero based budgeting approach and report back to Council; and

(11)   instruct officers to consult Aberdeen Heat and Power and report back to the Communities, Housing and Infrastructure Committee on the options to extend the original remit of Aberdeen Heat and Power from connecting up all multi-storey HRA properties to their CHP system to include all housing in the city wherever financially and technically viable, taking account of any implications for state aid.

There being a motion and two amendments, the Council first divided between the amendment by Councillor Delaney and the amendment by Councillor Dickson.

On a division, there voted:-

For the amendment by Councillor Delaney  (6)  -  Lord Provost; and Councillors Delaney, Greig, Malone, Jennifer Stewart and Yuill.

For the amendment by Councillor Dickson  (16)  -  Councillors Cameron, Copland, Corall, Cormie, Dickson, Jackie Dunbar, Flynn, Hutchison, Jaffrey, Kiddie, MacGregor, Nicoll, Noble, Samarai, Sandy Stuart and Townson.

Declined to vote  (21)  -  Depute Provost; and Councillors Allan, Boulton, Carle, Cooney, Crockett, Donnelly, Lesley Dunbar, Finlayson, Graham, Grant, Ironside, Laing, Lawrence, Malik, Milne, Jean Morrison, Nathan Morrison, Taylor, Thomson and Young.

The Council then divided between the motion and the amendment by Councillor Dickson.

On a division, there voted:-

For the motion  (22)  -  Lord Provost; Depute Provost; and Councillors Allan, Boulton, Carle, Cooney, Crockett, Donnelly, Lesley Dunbar, Finlayson, Graham, Grant, Ironside, Laing, Lawrence, Malik, Milne, Jean Morrison, Nathan Morrison, Taylor, Thomson and Young.

For the amendment by Councillor Dickson  (16)  -  Councillors Cameron, Copland, Corall, Cormie, Dickson, Jackie Dunbar, Flynn, Hutchison, Jaffrey, Kiddie, MacGregor, Nicoll, Noble, Samarai, Sandy Stuart and Townson.

Declined to vote  (5)  -  Councillors Delaney, Greig, Malone, Jennifer Stewart and Yuill.

The Council resolved:-

to adopt the motion.