Agenda item

Draft Housing Revenue Account (HRA) and Housing Capital Budget 2011/12 to 2013/14

Meeting of Budget Meeting, Council, Thursday, 10th February, 2011 2.00 pm (Item 3.)

Minutes:

The Council had before it a report by the Director of Housing and Environment which provided members with information to allow the setting of the rent level for the financial year 2011/12 as well as provisional rent levels for the financial years 2012/13 and 2013/14, explaining that this would allow a capital programme for 2011/12 to be set as well as a provisional programme for 2012/13 to 2013/14.

The report advised (a) that the current estimated out-turn for the HRA for 2010/11 showed a balanced budget with increased capital from current revenue; (b) that the draft budget for 2011/12, 2012/13 and 2013/14 (as attached as Appendix 1 to the report) showed gross expenditure of £75.407million, which included a contribution to capital expenditure referred to as Capital Financed from Current Revenue (CFCR) of £13.925million and income of £75.407million which reflected and included a proposed rent increase of 5.7% based on feedback from the annual tenants consultation; (c) that the budget included the capital financing charges to fund a programme of £50.276million (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 2011 were estimated at £5.336million, 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 local authority level, and the base programme, subject to the rent setting process, was £50.276million as set out in Appendix 1 to the report; (h) in terms of an outline budget for 2012/13 and 2013/14, also set out in Appendix 1 to the report, which included an assumed a rent increase of 2.9% in 2012/13 and 3% in 2013/14; (i) in terms of the average rents of all other local authorities in 2010/11, noting that if the Council were to approve the rental increase of 5.7% and all other local authorities were to maintain their rent at 2010/11 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 schedule of savings that could, and should, be made to reduce controllable costs - these savings had not been built into the base budget for 2011/12 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 2011/12 Housing Revenue Account and thereby:-

(b) determine the average weekly unrebated rents for municipal houses to take effect from Monday 4^th April 2011 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 2011/12 as well as a provisional contribution for the financial years 2012/13 and 2013/14;

(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 other adjustments it may wish to make to the draft Housing Revenue Account for the financial years 2011/12 to 2013/14;

(g) set a capital programme for the financial year 2011/12 based on the rent strategy adopted as well as an indicative level of programme for the financial years 2012/13 and 2013/14; and

(h) approve the Housing Revenue Account savings proposals for 2011/12 as summarised on page 37 within Appendix 1 to the report.

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

(a) that the Council set an average weekly unrebated rent for municipal houses of £65.31 (an increase of 4.7%) with effect from Monday 4^th April 2011;

(b) that the level of revenue contribution to the Housing Capital budget for 2011/12 be £13.660million;

(a) that the following budget savings be implemented:-

Cleaning - Sheltered Housing

1. Reduction of cleaning payments to internal contractors £13k

Legal Expenses

2. Reduce Legal Expenses £100k

Charges - Services Admin & Management

3. Closure of Logie and Cornhill Office £50k

ASBIT Team £50k

Charges - Tenant Participation

4. Reduce tenant participation costs £50k

Integrated Housing System

5. Integrated Housing System £50k

Loss of Rent – Council Houses

6. Void rent loss (houses and garages) £100k

TOTAL £413k

(b) to approve a capital programme of £56.8million before slippage for 2011/12 and that the capital process and analysis of the programme be presented to the Housing and Environment Committee in May;

(c) to instruct the Director of Housing and Environment to bring back proposals to the Housing and Environment Committee in May on how further savings totalling £600,000 could be implemented and achieved within the financial year 2011/12;

(d) to instruct the Director of Housing and Environment to report back to the Housing and Environment Committee in May on the pricing differential between customers for car parking charges; and

(e) that the Council continue to maintain working balances of 5% of gross expenditure to meet any unforeseen contingencies.

	Housing Revenue Account - Administration			4.7%
		Budget	Out-turn	Budget
		2010/11	2010/11	2011/12

		£000's	£000's	£000's	Notes

	Premises Costs
1	Rates	2	2	3
2	Rent - Other	105	105	128
3	Repairs and Maintenance	22,751	22,856	23,531
4	Maintenance of Grounds	2,560	2,482	2,560
5	Gas	705	705	710
6	Electricity	1,663	2,263	2,310
7	Cleaning Service	549	539	520
8	Security Service	558		444
9	Window Cleaning	18	18	18
10	Refuse Collection	135	135	150
11	Cleaning - Sheltered Housing	475	489	462	1
12	Premises Insurance	71	71	71
13	Other Property Costs - Council Tax	279	72	72
		29,871	29,737	30,978

	Administration Costs
14	Downsizing Grants/Direct Debit Incentives	168	78	78
15	Legal Expenses	294	440	340	2
16	Office Tel / Rent	73	73	88
17	Former Tenants Arrears	1,379	1,379	1,379
18	Charges - Services Admin & Management.	8,161	9,465	8,804	3
19	General Consultancy	55	55	55
20	Training for Front Line Staff	100	100	100
21	Benefits Staff	93	93	94
22	Charges - Tenants Participation	252	252	238	4
23	Charges for Property/Technical	158	0	0
24	Charges for Environmental Health	148	225	226
		10,881	12,160	11,402




	Supplies & Services
25	Provision of Meals	118	217	218
26	Equipment Purchase	55	55	55
27	Television Licence	5	5	5
28	Integrated Housing System	265	284	384	5
		443	561	662

	Agencies
29	Mediation Service	98	95	98
30	Provision of furniture	174	68	0
31	Energy Advice	81	81	81
32	Citizens Advice Bureau	14	14	14
33	Disabled Persons Housing Service	38	38	38
		405	296	231
	Transfer Payments
34	Aberdeen Families Project	400	400	400
35	Loss of Rent - Council Houses	649	717	658	6
36	Loss of Rent - Garages, Parking etc	145	151	160
37	Loss of Rent - Modernisation Works	48	48	51
38	Supporting People Contribution	417	417	406
39	CFCR	13,561	15,234	13,660
		15,220	16,967	15,334
	Capital Financing Costs
40	Loans Fund Instalment	2,577	2,362	3,560
41	Loans Fund Interest	10,664	8,627	12,429
42	Heating Leasing Payment	131	131	131
		13,372	11,120	16,120

	Expense Total	70,192	70,841	74,728
	Income
43	Government Grant - General	(313)	(313)	(310)
44	Ground Rentals	(25)	(25)	(25)
45	Dwelling Houses Rent Income	(66,571)	(67,269)	(71,159)
46	Housing - Heat with Rent Income	(1,119)	(1,127)	(1,127)
47	Housing - Garages Rent Income	(970)	(977)	(977)
48	Housing - Parking Spaces Rent	(167)	(158)	(158)
49	Housing - Insurance Income	(36)	(36)	(36)
50	Housing - Other Service Charge	(495)	(495)	(495)
51	Legal Expenses	(346)	(360)	(360)
52	Revenue Balance Interest	(150)	(81)	(81)

	Income Total	(70,192)	(70,841)	(74,728)

	Net Expenditure	(0)	(0)	(0)
Capital Programme
	Gross Programme			56,812
	Less: Slippage			(6,536)
	Net Programme			50,276

	Financed By:
	Borrowing			33,616
	Scottish Government Grant			3,000
	Capital Financed By Current Revenue			13,660
	Total Funding			50,276



Notes
Savings have been removed from the lines with the following notes

Cleaning - Sheltered Housing
1 Reduction of cleaning payments to internal contractors		£13k

Legal Expenses
2. Reduce Legal expenses		£100k

Charges - Services Admin & Management
3. Closure of Logie and Cornhill Office		£50k
ASBIT Team		£50k

Charges - Tenants Participation
4. Reduce Tenant participation costs		£50k

Integrated Housing System
5. Integrated housing system		£50k

Loss of Rent - Council Houses
6. Void rent loss (houses and garages)		£100k

Total		£413k

ABERDEEN CITY COUNCIL HOUSING REVENUE ACCOUNT
Proposed Increase to be included in the HRA budget - Miscellaneous Rents

	2 0 1 1 / 2 0 12
	Current	Proposed	Increase	Percentage	Additional
	Rental	Rental	Per Week	Increase	Income
Miscellaneous Increases	£	£	£	%	£
Garages	8.10	8.50	0.40	4.94%	40,858
Denburn and West North Street Spaces	4.20	4.40	0.20	4.76%	6,019
Garages Sites	3.20	3.40	0.20	6.25%	10,168
Car Ports	3.60	3.80	0.20	5.56%	1,382
Car Parking Spaces	3.20	3.40	0.20	6.25%	8,256
Parking Spaces Commercial	10.28	10.90	0.62	6.03%	1,220
Window Cleaning	0.80	0.85	0.05	6.25%	396
Meals at Denmore & Kingswood	32.80	35.00	2.20	6.71%	9,038
Mortgage Reference Fees	55.00	56.00	1.00	1.82%	28
Guest Rooms	14.50	15.30	0.80	5.52%	2,053
Owners Administration fees	10.05	10.05	0.00	0.00%	0
					79,417
TOTAL ADDITIONAL INCOME NOT INCLUDED IN THE BASE BUDGET

General Services
Housing - Homeless Account
Homeless Flats – Service Charge	250.33	250.33	0	0.00%	0
Single Homeless	76.00	80.00	4.00	5.26%	1,152
Clinterty Caravan Site	70.00	74.00	4.00	5.71%	6,048
					7,200
Housing Revenue Account
Accommodation Units (Grant Funded)
Adult (first2)	48.00	51.00	3.00	6.25%	41,250
Child	32.00	34.00	2.00	6.25%	13,750
					55,000

Heat with Rent - 48 week basis	Proposed
	Increase
	£
Bedsits	0.40
1 bedroomed flats	0.50
2 bedroomed flats	0.60
3 bedroomed flats	0.70

ABERDEEN CITY COUNCIL
HOUSING REVENUE ACCOUNT
Proposed Increase to be included in the HRA budget

Owners Charges

	Total no	Owners						Current
	of flats	liable for			Lifts		Total	Charge
Multi Storey	in complex	Charge	Electricity	Cleaning	Maintenance	Admin	Charge	2010/11	Difference
Ashgrove Court	40	2	64.63	46.00	19.82	3.37	133.82	125.79	8.03
Aulton Court	113	15	29.34	32.35	19.82	3.37	84.88	79.79	5.09
Balgownie Court	66	12	38.84	49.61	19.82	3.37	111.64	96.91	14.73
Bayview Court	111	8	28.65	32.93	19.82	3.37	84.78	73.04	11.74
Beachview Court	111	8	25.29	32.93	19.82	3.37	81.41	78.54	2.88
Beechwood Court	72	1	25.13	50.97	19.82	3.37	99.09	86.99	12.10
Bruce House	46	6	49.53	54.59	19.82	3.37	127.31	121.79	5.52
Cairncry Court	94	20	55.04	33.21	19.82	3.37	111.43	104.04	7.39
Cornhill Court	100	25	51.08	32.74	19.82	3.37	107.01	96.54	10.47
Davidson House	46	15	51.57	54.59	19.82	3.37	129.34	118.79	10.56
Denburn Court	120	40	46.08	30.46	19.82	3.37	99.74	83.29	16.45
Grampian Court	52	4	28.40	57.09	19.82	3.37	108.69	98.91	9.78
Grandholm Court	72	0	33.79	50.77	19.82	3.37	107.75	102.16	5.59
Gilcomstoun Land	75	34	50.76	31.45	19.82	3.37	105.39	117.54	-12.15
Greig Court	144	26	42.04	25.39	19.82	3.37	90.61	76.91	13.71
Hutcheon Court	140	28	34.24	21.21	19.82	3.37	78.64	82.04	-3.40
Inverdon Court	66	17	39.70	49.61	19.82	3.37	112.50	108.16	4.34
Kincorth Land	52	10	72.03	54.16	19.82	3.37	149.37	113.41	35.96
Kings Court	72	3	31.45	50.77	19.82	3.37	105.41	207.16	-101.74
Linksfield Court	111	3	27.36	32.93	19.82	3.37	83.49	71.66	11.83
Marischal Court	108	7	21.31	30.00	19.82	3.37	78.16	75.83	2.33
Morven Court	52	3	40.08	57.09	19.82	3.37	120.37	101.91	18.46
Oldcroft Court	72	7	19.59	50.77	19.82	3.37	93.55	81.91	11.64
Porthill Court	72	13	11.24	28.52	19.82	3.37	62.94	92.04	-29.10
Promenade Court	111	8	30.01	32.93	19.82	3.37	86.13	77.16	8.97
Regent Court	111	10	28.96	32.93	19.82	3.37	85.08	70.29	14.79
Rose House	46	14	33.97	54.59	19.82	3.37	111.75	116.04	-4.29
Rosehill Court	94	15	58.13	33.21	19.82	3.37	114.52	96.29	18.23
Seamount Court	126	38	21.89	29.00	19.82	3.37	74.10	93.66	-19.56
Stockethill Court	100	33	55.36	32.74	19.82	3.37	111.29	94.54	16.75
St Ninian Court	66	9	53.24	49.61	19.82	3.37	126.03	105.04	20.99
Tillydrone Court	52	1	43.52	54.16	19.82	3.37	120.87	108.04	12.83
Thistle Court	126	46	38.48	24.77	19.82	3.37	86.44	81.29	5.16
Virginia Court	48	12	61.39	42.77	19.82	3.37	127.35	127.04	0.31
Wallace House	46	6	29.50	54.59	19.82	3.37	107.28	118.79	-11.51

Total		499

Proposed charges would be effective from 1 April 2011 to 31 March 2011
Potential Increases stated in the above calculation -
The Electricity reflects the consumption for each multi storey in the previous financial year
Lift Maintenance has been uplifted by 18%
Admin Costs based on actual staff costs.

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

(a) that the Council set an average weekly unrebated rent for municipal houses of £64.69 (an increase of 3.7%) with effect from Monday 4^th April 2011;

(b) that the level of revenue contribution to the Housing Capital budget for 2011/12 be £12.565million;

(d) to approve a capital programme of £56.8million before slippage for 2011/12; and

(e) that the Council continue to maintain working balances of 5% of gross expenditure to meet any unforeseen circumstances.

	Housing Revenue Account - LABOUR			3.7%
		Budget	Out-turn	Budget
		2010/11	2010/11	2011/12

		£000's	£000's	£000's

	Premises Costs
1	Rates	2	2	3
2	Rent - Other	105	105	125
3	Repairs and Maintenance	22,751	22,856	23,531
4	Maintenance of Grounds	2,560	2,482	2,560
5	Gas	705	705	710
6	Electricity	1,663	2,263	2,310
7	Cleaning Service	549	539	520
8	Security Service	558		444
9	Window Cleaning	18	18	18
10	Refuse Collection	135	135	150
11	Cleaning - Sheltered Housing	475	489	475
12	Premises Insurance	71	71	71
13	Other Property Costs - Council Tax	279	72	72
		29,871	29,737	30,989

	Administration Costs
14	Downsizing Grants/Direct Debit Incentives	168	78	78
15	Legal Expenses	294	440	440
16	Office Tel / Rent	73	73	88
17	Former Tenants Arrears	1,379	1,379	1,379
18	Charges - Services Admin & Management.	8,161	9,465	8,904
19	General Consultancy	55	55	55
20	Training for Front Line Staff	100	100	100
21	Benefits Staff	93	93	94
22	Charges - Tenants Participation	252	252	288
23	Charges for Property/Technical	158	0	0
24	Charges for Environmental Health	148	225	226
		10,881	12,160	11,652

	Supplies & Services
25	Provision of Meals	118	217	218
26	Equipment Purchase	55	55	55
27	Television Licence	5	5	5
28	Integrated Housing System	265	284	434
		443	561	712

	Agencies
29	Mediation Service	98	95	98
30	Provision of furniture	174	68	0
31	Energy Advice	81	81	81
32	Citizens Advice Bureau	14	14	14
33	Disabled Persons Housing Service	38	38	38
		405	296	231
	Transfer Payments
34	Aberdeen Families Project	400	400	400
35	Loss of Rent - Council Houses	649	717	758
36	Loss of Rent - Garages, Parking etc	145	151	157
37	Loss of Rent - Modernisation Works	48	48	50
38	Supporting People Contribution	417	417	406
39	CFCR	13,561	15,234	12,565
		15,220	16,967	14,336

	Capital Financing Costs
40	Loans Fund Instalment	2,577	2,362	3,560
41	Loans Fund Interest	10,664	8,627	12,438
42	Heating Leasing Payment	131	131	131
		13,372	11,120	16,129
	Expense Total	70,192	70,841	74,049
	Income
43	Government Grant - General	(313)	(313)	(310)
44	Ground Rentals	(25)	(25)	(25)
45	Dwelling Houses Rent Income	(66,571)	(67,269)	(70,480)
46	Housing - Heat with Rent Income	(1,119)	(1,127)	(1,127)
47	Housing - Garages Rent Income	(970)	(977)	(977)
48	Housing - Parking Spaces Rent	(167)	(158)	(158)
49	Housing - Insurance Income	(36)	(36)	(36)
50	Housing - Other Service Charge	(495)	(495)	(495)
51	Legal Expenses	(346)	(360)	(360)
52	Revenue Balance Interest	(150)	(81)	(81)

	Income Total	(70,192)	(70,841)	(74,049)

	Net Expenditure	(0)	(0)	(0)

Capital Programme
	Gross Programme			56,812
	Less: Slippage			(6,536)
	Net Programme			50,276

	Financed By:
	Borrowing			34,711
	Scottish Government Grant			3,000
	Capital Financed By Current Revenue			12,565
	Total Funding			50,276

ABERDEEN CITY COUNCIL
HOUSING REVENUE ACCOUNT

Proposed Increase to be included in the HRA budget - Miscellaneous Rents

	2 0 1 1 / 2 0 12
	Current	Proposed	Increase	Percentage	Additional
	Rental	Rental	Per Week	Increase	Income
Miscellaneous Increases	£	£	£	%	£
Garages	8.10	8.50	0.40	4.94%	40,858
Denburn and West North Street Spaces	4.20	4.40	0.20	4.76%	6,019
Garages Sites	3.20	3.40	0.20	6.25%	10,168
Car Ports	3.60	3.80	0.20	5.56%	1,382
Car Parking Spaces	3.20	3.40	0.20	6.25%	8,256
Parking Spaces Commercial	10.28	10.90	0.62	6.03%	1,220
Window Cleaning	0.80	0.85	0.05	6.25%	396
Meals at Denmore & Kingswood	32.80	35.00	2.20	6.71%	9,038
Mortgage Reference Fees	55.00	56.00	1.00	1.82%	28
Guest Rooms	14.50	15.30	0.80	5.52%	2,053
Owners Administration fees	10.05	10.05	0.00	0.00%	0
					79,417
TOTAL ADDITIONAL INCOME NOT INCLUDED IN THE BASE BUDGET

General Services
Housing - Homeless Account
Homeless Flats – Service Charge	250.33	250.33	0	0.00%	0
Single Homeless	76.00	80.00	4.00	5.26%	1,152
Clinterty Caravan Site	70.00	74.00	4.00	5.71%	6,048

					7,200

	2 0 1 1 / 2 0 12
	Current	Proposed	Increase	Percentage	Additional
	Rental	Rental	Per Week	Increase	Income
Housing Revenue Account
Accommodation Units (Grant Funded)
Adult (first2)	48.00	51.00	3.00	6.25%	41,250
Child	32.00	34.00	2.00	6.25%	13,750
					55,000

Heat with Rent - 48 week basis
	Previous	Proposed
Gas Heated Properties	£	£
Bedsits	7.35	8.53
1 bedroomed flats	7.85	9.11
2 bedroomed flats	8.35	9.68
3 bedroomed flats	8.85	10.27

Electrically Heated Properties
Bedsits	8.35	9.68
1 bedroomed flats	8.85	10.27
2 bedroomed flats	9.35	10.85
3 bedroomed flats	9.85	11.43

CHP Properties
All 1 Bedroomed Properties	7.60	8.82
All 2 Bedroomed Properties	8.10	9.40
All 3 Bedroomed Properties	8.60	9.98

ABERDEEN CITY COUNCIL
HOUSING REVENUE ACCOUNT
Proposed Increase to be included in the HRA budget

Owners Charges

	Total no	Owners						Current
	of flats	liable for			Lifts		Total	Charge
Multi Storey	in complex	Charge	Electricity	Cleaning	Maintenance	Admin	Charge	2010/11	Difference
Ashgrove Court	40	2	64.63	46.00	19.82	3.37	133.82	125.79	8.03
Aulton Court	113	15	29.34	32.35	19.82	3.37	84.88	79.79	5.09
Balgownie Court	66	12	38.84	49.61	19.82	3.37	111.64	96.91	14.73
Bayview Court	111	8	28.65	32.93	19.82	3.37	84.78	73.04	11.74
Beachview Court	111	8	25.29	32.93	19.82	3.37	81.41	78.54	2.88
Beechwood Court	72	1	25.13	50.97	19.82	3.37	99.09	86.99	12.10
Bruce House	46	6	49.53	54.59	19.82	3.37	127.31	121.79	5.52
Owners Charges

	Total no	Owners						Current
	of flats	liable for			Lifts		Total	Charge
Multi Storey	in complex	Charge	Electricity	Cleaning	Maintenance	Admin	Charge	2010/11	Difference
Cairncry Court	94	20	55.04	33.21	19.82	3.37	111.43	104.04	7.39
Cornhill Court	100	25	51.08	32.74	19.82	3.37	107.01	96.54	10.47
Davidson House	46	15	51.57	54.59	19.82	3.37	129.34	118.79	10.56
Denburn Court	120	40	46.08	30.46	19.82	3.37	99.74	83.29	16.45
Grampian Court	52	4	28.40	57.09	19.82	3.37	108.69	98.91	9.78
Grandholm Court	72	0	33.79	50.77	19.82	3.37	107.75	102.16	5.59
Gilcomstoun Land	75	34	50.76	31.45	19.82	3.37	105.39	117.54	-12.15
Greig Court	144	26	42.04	25.39	19.82	3.37	90.61	76.91	13.71
Hutcheon Court	140	28	34.24	21.21	19.82	3.37	78.64	82.04	-3.40
Inverdon Court	66	17	39.70	49.61	19.82	3.37	112.50	108.16	4.34
Kincorth Land	52	10	72.03	54.16	19.82	3.37	149.37	113.41	35.96
Kings Court	72	3	31.45	50.77	19.82	3.37	105.41	207.16	-101.74
Linksfield Court	111	3	27.36	32.93	19.82	3.37	83.49	71.66	11.83
Marischal Court	108	7	21.31	30.00	19.82	3.37	78.16	75.83	2.33
Morven Court	52	3	40.08	57.09	19.82	3.37	120.37	101.91	18.46
Oldcroft Court	72	7	19.59	50.77	19.82	3.37	93.55	81.91	11.64
Porthill Court	72	13	11.24	28.52	19.82	3.37	62.94	92.04	-29.10
Promenade Court	111	8	30.01	32.93	19.82	3.37	86.13	77.16	8.97
Regent Court	111	10	28.96	32.93	19.82	3.37	85.08	70.29	14.79
Rose House	46	14	33.97	54.59	19.82	3.37	111.75	116.04	-4.29
Rosehill Court	94	15	58.13	33.21	19.82	3.37	114.52	96.29	18.23
Seamount Court	126	38	21.89	29.00	19.82	3.37	74.10	93.66	-19.56
Stockethill Court	100	33	55.36	32.74	19.82	3.37	111.29	94.54	16.75
St Ninian Court	66	9	53.24	49.61	19.82	3.37	126.03	105.04	20.99
Tillydrone Court	52	1	43.52	54.16	19.82	3.37	120.87	108.04	12.83
Thistle Court	126	46	38.48	24.77	19.82	3.37	86.44	81.29	5.16
Virginia Court	48	12	61.39	42.77	19.82	3.37	127.35	127.04	0.31
Wallace House	46	6	29.50	54.59	19.82	3.37	107.28	118.79	-11.51

Total		499

Proposed charges would be effective from 1 April 2011 to 31 March 2011
Potential Increases stated in the above calculation -
The Electricity reflects the consumption for each multi storey in the previous financial year
Lift Maintenance has been uplifted by 18%
Admin Costs based on actual staff costs.

Councillor Donnelly moved as a further amendment, seconded by Councillor Wisely:-

(a) that the Council set an average weekly unrebated rent for municipal houses of £66.56 (an increase of 6.7%) with effect from Monday 4^th April 2011;

(b) that the level of revenue contribution to the Housing Capital budget for 2011/12 be £14.949million;

(d) that the following budget savings be implemented:-

Cleaning - Sheltered Housing

1. Reduction of cleaning payments to internal contractors £13k

Legal Expenses

2. Reduce Legal Expenses £100k

Charges - Services Admin & Management

3. Closure of Logie and Cornhill Office £50k

ASBIT Team £50k

Charges - Tenant Participation

4. Reduce tenant participation costs £50k

Integrated Housing System

5. Integrated Housing System £50k

Loss of Rent - Council Houses

6. Void rent loss (houses and garages) £100k

TOTAL £413k

(e) to approve a capital programme of £56.8million before slippage for 2011/12; and

(f) that the Council continue to maintain working balances of 5% of gross expenditure to meet any unforeseen contingencies.

	Housing Revenue Account - Aberdeen Conservatives				6.7%
		Budget		Out-turn	Budget
		2010/11		2010/11	2011/12

		£000's		£000's	£000's	Notes

	Premises Costs
1	Rates	2		2	3
2	Rent - Other	105		105	128
3	Repairs and Maintenance	22,751		22,856	23,531
4	Maintenance of Grounds	2,560		2,482	2,560
5	Gas	705		705	710
6	Electricity	1,663		2,263	2,310
7	Cleaning Service	549		539	520
8	Security Service	558			444
9	Window Cleaning	18		18	18
10	Refuse Collection	135		135	150
11	Cleaning - Sheltered Housing	475		489	462	1
12	Premises Insurance	71		71	71
13	Other Property Costs - Council Tax	279		72	72
		29,871		29,737	30,978

	Administration Costs
14	Downsizing Grants/Direct Debit Incentives	168		78	78
15	Legal Expenses	294		440	340	2
16	Office Tel / Rent	73		73	88
17	Former Tenants Arrears	1,379		1,379	1,379
18	Charges - Services Admin & Management.	8,161		9,465	8,804	3
19	General Consultancy	55		55	55
20	Training for Front Line Staff	100		100	100
21	Benefits Staff	93		93	94
22	Charges - Tenants Participation	252		252	238	4
23	Charges for Property/Technical	158		0	0
24	Charges for Environmental Health	148		225	226
		10,881		12,160	11,402
	Supplies & Services
25	Provision of Meals	118		217	218
26	Equipment Purchase	55		55	55
27	Television Licence	5		5	5
28	Integrated Housing System	265		284	384	5
		443		561	662
	Agencies
29	Mediation Service	98		95	98
30	Provision of furniture	174		68	0
31	Energy Advice	81		81	81
32	Citizens Advice Bureau	14		14	14
33	Disabled Persons Housing Service	38		38	38
		405		296	231
	Transfer Payments
34	Aberdeen Families Project	400		400	400
35	Loss of Rent - Council Houses	649		717	658	6
36	Loss of Rent - Garages, Parking etc	145		151	160
37	Loss of Rent - Modernisation Works	48		48	51
38	Supporting People Contribution	417		417	406
39	CFCR	13,561		15,234	14,949
		15,220		16,967	16,623
	Capital Financing Costs
40	Loans Fund Instalment	2,577		2,362	3,560
41	Loans Fund Interest	10,664		8,627	12,429
42	Heating Leasing Payment	131		131	131
		13,372		11,120	16,120
	Expense Total	70,192		70,841	76,017

	Income
43	Government Grant - General	(313)		(313)	(310)
44	Ground Rentals	(25)		(25)	(25)
45	Dwelling Houses Rent Income	(66,571)		(67,269)	(72,448)
46	Housing - Heat with Rent Income	(1,119)		(1,127)	(1,127)
47	Housing - Garages Rent Income	(970)		(977)	(977)
48	Housing - Parking Spaces Rent	(167)		(158)	(158)
49	Housing - Insurance Income	(36)		(36)	(36)
50	Housing - Other Service Charge	(495)		(495)	(495)
51	Legal Expenses	(346)		(360)	(360)
52	Revenue Balance Interest	(150)		(81)	(81)

	Income Total	(70,192)		(70,841)	(76,017)
	Net Expenditure	(0)		(0)	(0)

Capital Programme
	Gross Programme				56,812
	Less: Slippage				(6,536)
	Net Programme				50,276

	Financed By:
	Borrowing				32,327
	Scottish Government Grant				3,000
	Capital Financed By Current Revenue				14,949
	Total Funding				50,276



Notes
Savings have been removed from the lines with the following notes

Cleaning - Sheltered Housing
1 Reduction of cleaning payments to internal contractors			£13k

Legal Expenses
2. Reduce Legal expenses			£100k

Charges - Services Admin & Management
3. Closure of Logie and Cornhill Office			£50k
ASBIT Team			£50k

Charges - Tenants Participation
4. Reduce Tenant participation costs			£50k

Integrated Housing System
5. Integrated housing system			£50k

Loss of Rent - Council Houses
6. Void rent loss (houses and garages)			£100k

Total			£413k

ABERDEEN CITY COUNCIL HOUSING REVENUE ACCOUNT
Proposed Increase to be included in the HRA budget - Miscellaneous Rents

	2 0 1 1 / 2 0 12
	Current	Proposed	Increase	Percentage	Additional
	Rental	Rental	Per Week	Increase	Income
Miscellaneous Increases	£	£	£	%	£
Garages	8.10	8.50	0.40	4.94%	40,858
Denburn and West North Street Spaces	4.20	4.40	0.20	4.76%	6,019
Garages Sites	3.20	3.40	0.20	6.25%	10,168
Car Ports	3.60	3.80	0.20	5.56%	1,382
Car Parking Spaces	3.20	3.40	0.20	6.25%	8,256
Parking Spaces Commercial	10.28	10.90	0.62	6.03%	1,220
Window Cleaning	0.80	0.85	0.05	6.25%	396
Meals at Denmore & Kingswood	32.80	35.00	2.20	6.71%	9,038
Mortgage Reference Fees	55.00	56.00	1.00	1.82%	28
Guest Rooms	14.50	15.30	0.80	5.52%	2,053
Owners Administration fees	10.05	10.05	0.00	0.00%	0
					79,417
TOTAL ADDITIONAL INCOME NOT INCLUDED IN THE BASE BUDGET

General Services
Housing - Homeless Account
Homeless Flats – Service Charge	250.33	250.33	0	0.00%	0
Single Homeless	76.00	80.00	4.00	5.26%	1,152
Clinterty Caravan Site	70.00	74.00	4.00	5.71%	6,048

					7,200
Housing Revenue Account
Accommodation Units (Grant Funded)
Adult (first2)	48.00	51.00	3.00	6.25%	41,250
Child	32.00	34.00	2.00	6.25%	13,750
					55,000

Heat with Rent - 48 week basis
	Previous	Proposed
Gas Heated Properties	£	£
Bedsits	7.35	8.53
1 bedroomed flats	7.85	9.11
2 bedroomed flats	8.35	9.68
3 bedroomed flats	8.85	10.27

Electrically Heated Properties
Bedsits	8.35	9.68
1 bedroomed flats	8.85	10.27
2 bedroomed flats	9.35	10.85
3 bedroomed flats	9.85	11.43

CHP Properties
All 1 Bedroomed Properties	7.60	8.82
All 2 Bedroomed Properties	8.10	9.40
All 3 Bedroomed Properties	8.60	9.98

ABERDEEN CITY COUNCIL
HOUSING REVENUE ACCOUNT
Proposed Increase to be included in the HRA budget

Owners Charges

	Total no	Owners						Current
	of flats	liable for			Lifts		Total	Charge
Multi Storey	in complex	Charge	Electricity	Cleaning	Maintenance	Admin	Charge	2010/11	Difference
Ashgrove Court	40	2	64.63	46.00	19.82	3.37	133.82	125.79	8.03
Aulton Court	113	15	29.34	32.35	19.82	3.37	84.88	79.79	5.09
Balgownie Court	66	12	38.84	49.61	19.82	3.37	111.64	96.91	14.73
Bayview Court	111	8	28.65	32.93	19.82	3.37	84.78	73.04	11.74
Beachview Court	111	8	25.29	32.93	19.82	3.37	81.41	78.54	2.88
Beechwood Court	72	1	25.13	50.97	19.82	3.37	99.09	86.99	12.10
Bruce House	46	6	49.53	54.59	19.82	3.37	127.31	121.79	5.52
Cairncry Court	94	20	55.04	33.21	19.82	3.37	111.43	104.04	7.39
Cornhill Court	100	25	51.08	32.74	19.82	3.37	107.01	96.54	10.47
Davidson House	46	15	51.57	54.59	19.82	3.37	129.34	118.79	10.56
Denburn Court	120	40	46.08	30.46	19.82	3.37	99.74	83.29	16.45
Grampian Court	52	4	28.40	57.09	19.82	3.37	108.69	98.91	9.78
Grandholm Court	72	0	33.79	50.77	19.82	3.37	107.75	102.16	5.59
Gilcomstoun Land	75	34	50.76	31.45	19.82	3.37	105.39	117.54	-12.15
Greig Court	144	26	42.04	25.39	19.82	3.37	90.61	76.91	13.71
Hutcheon Court	140	28	34.24	21.21	19.82	3.37	78.64	82.04	-3.40
Inverdon Court	66	17	39.70	49.61	19.82	3.37	112.50	<

Supporting documents:

Related Links

Agenda item

Draft Housing Revenue Account (HRA) and Housing Capital Budget 2011/12 to 2013/14

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