Agenda item

Attention having been directed to the removal by the Standards Commission of any disability imposed by the Councillor’s Code of Conduct on any members of the Council who had declared an interest under section 4 of the Code by virtue of being tenants of municipal houses so as to enable them to consider, discuss and vote on the matter of rent of municipal houses, the Acting Head of Democratic Services intimated that Councillor Collie had declared an interest but would not be required to leave the meeting.

The Council had before it a joint report by the Director of Housing and Environment and the City Chamberlain which provided members with information to allow the setting of the rent level for the financial year 2010/11 as well as provisional rent levels for the financial years 2011/12 and 2012/13, explaining that this would allow a capital programme for 2010/11 to be set as well as a provisional programme for 2011/12 to 2012/13.

The report advised (a) that the current estimated out-turn for the HRA for 2009/10 showed a balanced budget with increased capital from current revenue; (b) that the draft budget for 2010/11, 2011/12 and 2012/13 (as attached at Appendix 1 to the report) showed gross expenditure of £70.095million which included a contribution to capital expenditure referred to as Capital Financed from Current Revenue (CFCR) of £12.753million and income of £70.095million which reflected and included a proposed rent increase of 2.3% based on feedback from the annual tenants consultation; (c) that the budget included the capital financing charges to fund a programme of £54.847million (the details of the potential projects to be included in this programme were contained within Appendix 1 to the report); (d) that the budget detailed in Appendix 1 to the report also required the miscellaneous rents and service charges to be set, and the report gave indicative increases that the Council may wish to consider, along with what these meant as a percentage (the Council would have to decide on any possible increment to these charges in line with its rent setting strategy); (e) that working balances as at 31^st March 2010 were estimated at £5.135million, and it was considered that working balances should be set at 5% of final gross expenditure; (f) of the minimum working balances over the next three financial years subject to final budget approvals; (g) that in setting a capital programme, the level of capital investment was determined at a local authority level and the base programme, subject to the rent setting process, was £54.847million as set out in Appendix 1 to the report; (h) in terms of an outline budget for 2011/12 and 2012/13, also set out within Appendix 1 to the report, which included an assumed rent increase of 1.5% in 2011/12 and 1.3% in 2012/13; (i) in terms of the average rents of all other local authorities in 2009/10, noting that if the Council was to approve the rental increase of 2.3% and all other local authorities were to maintain their rent at 2009/10 levels, the Council’s average rent would not be the highest in Scotland; and (j) that included within Appendix 1 to the report was a list of controllable costs and a schedule of savings that could, and should, be made to reduce controllable costs - these savings had not been built into the base budget for 2010/11 onwards and were part of the continuing drive to ensure that rental income was used effectively, costs were reduced and efficiency increased whilst at the same time improving the service.

The report recommended:-

that the Council -

(a)              consider and determine any adjustments it may wish to make to the draft 2010/11 Housing Revenue Account and thereby -

(b)              determine the average weekly unrebated rents for municipal houses to take effect from Monday 5^th April 2010 taking into consideration the Scottish Housing Quality Standard (SHQS) 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 2010/11 as well as a provisional contribution for the financial years 2011/12 and 2012/13;

(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 to other adjustments the Council may wish to make to the draft Housing Revenue Account for the financial years 2010/11 to 2012/13;

(g)              set a capital programme for the financial year 2010/11 based on the rent strategy adopted as well as an indicative level of programme for the financial years 2011/12 and 2012/13; and

(h)               approve the Housing Revenue Account savings proposals for 2010/11 as summarised on page 40 within Appendix 1 to the report.

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

(a)               that the Council agree to raise rents by 2.3% for 2010/11 and thereafter set rents in 2011/12 and 2012/13 based on the inflation rate (Retail Prices Index) as at November 2009 - plus 1%;

(b)               that the level of revenue contribution to the Housing Capital Budget for 2010/11 would be £12.753million and indicative levels of £10.4million for 2011/12 and £8.6million for 2012/13;

(c)               that the level of capital investments in 2010/11 be £63.043million and indicative levels of £57million for 2011/12 and £45million for 2012/13 prior to slippage;

(d)               that working balances be maintained at 5% of gross expenditure with minimum balances of £5.135million in 2010/11;

(e)               that the miscellaneous rents and other service charges as detailed in the report be approved; and

(f)                 to otherwise approve the remaining recommendations contained within the report.

Councillor Malone thanked all of the staff who had helped her prepare the budget.

Councillor Hunter moved as an amendment, seconded by Councillor Cooney:-

That the Council restrict the increase on Council house rents to the September 2009 Retail Prices Index rate of inflation, 1.3%.

On a division, there voted:-

For the motion  (31)  -  Lord Provost Peter Stephen; Depute Provost Dunbar; and Councillors Boulton, Clark, Corall, Cormack, Cormie, Dean, Donnelly, Farquharson, Fletcher, Greig, Jaffrey, Kiddie, Leslie, McCaig, McDonald, Malone, May, Milne, Noble, Penny, Reynolds, Jennifer Stewart, John Stewart, Kevin Stewart, Wendy Stuart, John West, Kirsty West, Wisely and Yuill.

For the amendment  (10)  -  Councillors Adam, Allan, Cassie, Collie, Cooney, Crockett, Hunter, Ironside, Laing and Young.

Absent from the division  (2)  -  Councillors Graham and Robertson.

The Council resolved:-

to adopt the motion.