Agenda item

Revised page 247 - Heat with Rent calculations for 2020/21

The Council had before it a report by the Director of Resources which provided information to enable the Council to approve a revenue and capital budget for 2020/21, including setting of the rents and other charges on the Housing Revenue Account for the financial year.

The report recommended:-

that the Council -

(a)          approve the budget as attached in Appendix 1, pages 5 to 6, of the report;

(b)          approve the setting of the weekly unrebated rents for municipal houses taking account of proposals outlined for a fixed rent policy, as detailed in Appendix 1, pages 5 to 6 of the report, to take effect from Monday 4 May 2020;

(c)          approve the level of revenue contribution to the Housing Capital budget for 2020/21 as well as note the provisional contribution for the subsequent four financial years as detailed in Appendix 1, pages 19 to 20;

(d)          approve the proposal to maintain the working balances at 10% to meet future contingencies as detailed in Appendix 1, pages 5 to 6;

(e)          approve the level of miscellaneous rents and service charges, including Heat with Rent as detailed in Appendix 1, pages 12 to 13, to take effect from Monday 4 May 2020;

(f)           approve, based on the rental increase of 3% the Base Capital Programme for the financial year 2020/21 Appendix 1, pages 22 to 24;

(g)          note the indicative level of the Base Capital Programme for the financial years 2021/22 to 2024/25 Appendix 1, pages 22 to 24;

(h)          approve as estimated expenditure in terms of Procurement Regulation 4.1.1, in order for work to commence on the Ongoing Capital Programme, the sums shown against each heading of the Housing Capital Expenditure budget for the financial year 2020/21 set out in Appendix 1, pages 22 to 24, without the need for separate Committee approval of each;

(i)            delegate authority to the Director of Resources, following consultation with the Chief Officer - Capital, Head of Commercial and Procurement and Conveners of the Capital Programme Committee and the City Growth and Resources Committee, to approve business cases related to the expenditure approved in terms of recommendation (h) and to undertake or instruct appropriate procedures in accordance with the ACC Procurement Regulations to procure the works referred to in those business cases within the budgets allocated in Appendix 1, pages 22 to 24, for the capital programme for the financial year 2020/21 and to authorise the award of contracts relating thereto;

(j)            approve the transfer of land at market value to the HRA, to deliver Council housing (subject to undertaking all necessary consultations) in respect of the following sites:

2.10.1             Greenferns and Greenferns Landward

2.10.2             Former Kaimhill Outdoor Centre; and

(k)        delegate authority to the Director of Resources, following consultation with the Chief Officer - Finance, Chief Officer - Capital, Head of Commercial and Procurement and the Conveners of the Capital Programme Committee and the City Growth and Resources Committee, to approve business cases and expenditure, undertake all necessary procurement exercises to procure the works referred to in those business cases in accordance with the ACC Procurement Regulations and authorise entering into contracts and development agreements related thereto, for Council housing at the following sites subject to them falling within the financial model for the HRA:

            2.11.1             Greenferns and Greenferns Landward

            2.11.2             Former Kaimhill Outdoor Centre

The Council resolved:-

Net Zero Transition

(i)           to approve expenditure of £198,000 on cavity wall and loft insulation to help reduce heat loss;

(ii)          to approve expenditure of £7.634million on heating systems replacement, installing combined Heat and Power where feasible;

(iii)         to approve expenditure of £1.276million on the creation of Combined Heat and Power Plants;

(iv)         to approve expenditure of £420,000 on energy efficient measures in extra care housing;

(v)          to approve expenditure of £1.2million on solid wall insulation to help reduce heat loss;

(vi)         to approve expenditure of £500,000 on refurbishment of properties and environmental improvements;

(vii)       to approve expenditure of £200,000 (over 2 years) to undertake an options appraisal for retrofitting alternative heating provision;

New Council House Programme

(viii)      to approve expenditure of £1.5million for the refurbishment of the properties purchased at 206 Union Street to provide an additional 28 units;

(ix)         to note expenditure of £13.495million on new housing units at Summerhill for 2020/21;

(x)          to note expenditure of £9.363million on new housing units at Wellheads for 2020/21;

(xi)         to note that the Council had to date received 15 expressions of interest since advertising Phase 2 of the New Council House Build Programme with the expectation that these would meet the Gold Standard;

(xii)       to approve the transfer of land at market value to the Housing Revenue Account (HRA), to deliver Council housing (subject to undertaking all necessary consultations) in respect of the following sites:

-       Greenferns and Greenferns Landward

-       Former Kaimhill Outdoor Centre;

(xiii)      to delegate authority to the Director of Resources, following consultation with the Chief Officer - Finance, Chief Officer - Capital, Head of Commercial and Procurement and the Conveners of the Capital Programme Committee and the City Growth and Resources Committee, to approve business cases and expenditure, undertake all necessary procurement exercises to procure the works referred to in those business cases in accordance with the ACC Procurement Regulations and authorise entering into contracts and development agreements related thereto, for Council housing at the following sites subject to them falling within the financial model for HRA:

-       Greenferns and Greenferns Landward

-       Former Kaimhill Outdoor Centre;

Operational Matters

(xiv)      to instruct the Chief Officer - Early Intervention and Community Empowerment to review the Council Housing Allocation Policy and report back to the Operational Delivery Committee;

HRA

(xv)       to approve the budget as circulated separately - HRA Appendix 1 - and available here;

(xvi)      to approve the setting of the weekly unrebated rents for municipal houses taking account of the proposals outlined for a fixed rent policy, at 4% per annum for 4 years, as detailed in Appendix 1 of the report, to take effect from Monday 4 May 2020;

(xvii)     to approve the level of revenue contribution to the Housing Capital budget for 2020/21 and note the provisional contribution for the subsequent four financial years as detailed in HRA Appendix 1, circulated separately;

(xviii)    to approve the proposal to maintain the working balances at 10% to meet future contingencies as detailed in Appendix 1 of the report;

(xix)      to approve the level of miscellaneous rents and service charges as detailed in HRA Appendix 2 circulated separately and available here, to take effect from Monday 4 May 2020;

(xx)       to approve the Base Capital Programme for the financial year 2020/21 and the indicative programme for 2021/22 to 2024/25 as detailed in Appendix 1 of the report;

(xxi)      to approve as estimated expenditure in terms of Procurement Regulation 4.1.1, in order for work to commence on the ongoing Capital Programme, the sums shown against each heading of the Housing Capital Expenditure budget for the financial year 2020/21 set out in Appendix 1 of the report, without the need for separate committee approval of each; and

(xxii)     to delegate authority to the Director of Resources, following consultation with the Chief Officer - Capital, Head of Commercial and Procurement and the Conveners of the Capital Programme Committee and the City Growth and Resources Committee, to approve business cases related to the expenditure approved in terms of resolution (xxi) above, and to undertake or instruct appropriate procedures in accordance with the ACC Procurement Regulations to procure the works referred to in those business cases within the budgets allocated in Appendix 1 of the report for the Capital Programme for the financial year 2020/21 and to authorise the award of contracts relating thereto.