Agenda and draft minutes

-       Minutes of meeting held on 4^th March, 2013

The following report was submitted:-

Area Assembly Chairs

Monday, 4th March, 2013

The Director of Housing and Neighbourhoods submitted payment options for those who purchased leasehold properties to meet the cost of capital works.

There were 459 leaseholders in owner-occupation in Rotherham who had exercised their Right to Buy and were paying service charges to the Council.  A very small number of the leasehold agreements were signed post-2002 and it was estimated that 60 leaseholders would receive invoices for major repair works.

Data collected indicated that Rotherham Council levy charges averaged around £200 annually per leaseholder per flat.  However, service charges may often exceed £3,000 if properties were subject to major works, in particular non-traditional properties and roof repairs.

The Land Valuation Tribunal heard cases of legal dispute between leaseholders and landlords and would examine how far a landlord had considered the financial impact of its plans for major repairs.  The landlord should offer a range of payment options, reflecting the financial circumstances of leaseholders, whilst allowing major works to proceed as necessary.

The Council was not able to help leaseholders manage their finances ahead of a programme of major repairs, therefore, it was proposed that payment options be offered through loans, instalments in arrears or other measures.

The Council wished to support leaseholders with a set of affordable solutions:-

-          Signpost leaseholders to financial advice, working in partnership with a Credit Union and the voluntary sector, in particular for pensioners and people with disabilities

-          Maintain deferred payment facilities over 12 months, interest free and without charges

-          Offer 5 year loans secured by a legal charge and managed by a credit union with a cap on the value of the loan

-          Use discretionary powers to grant voluntary charges on properties to people in financial hardship

Discussion ensued on the proposals with the following issues raised:-

-          Leaseholders would be offered advice and support with regard to claiming their full entitlement to benefits

-          Leaseholders could not be given independent financial advice by the Authority as they could potentially become their debtors.  They would have taken financial advice to purchase the property initially and it would be their responsibility subsequently

-          In light of the above comment, literature should highlight that leaseholders may wish to seek independent financial advice

-          Work should take place on the implications of offering an interest free loan for 24 months

-          Publicise the benefits of joining a Credit Union

Resolved:-  (1)  That the payment options set out in the report to enable leaseholders to meet the costs of capital works to their flats be approved.

That consideration be given to offering an interest free loan for up to 2 years after obtaining further advice from legal and financial services.

(3)  That the LASER Credit Union administer the loans on behalf of the Council.

The Director of Housing and Neighbourhoods presented a report on the Housing Revenue Account which was forecasting an outturn on budget with a transfer to working balances (HRA reserves) of £3.964M, an increase of £2.126M above the approved budget.

Appendix A of the report submitted illustrated that the forecast year end spend on Repairs and Maintenance was an underspend of £655,000 compared to budget.  Under the review of the 2011/12 Cost Collection workbook, part of the Repairs and Maintenance contract, both contractors had had their Price per Property reduced generating a net saving of £655,000.  Every endeavour had been made to spend the savings, however, due to them not having been identified until late in the current financial year, further additional works could not be delivered.  The savings would be carried forward into 2013/14 to address repairs and maintenance items.

It was difficult to forecast the Empty Homes budget given the responsive nature of the Service.  The original budget was based on an estimated 1,600 minor voids in year; the actual number of voids to the end of January, 2013, was 120 below the budgeted sum.  However, it was a responsive budget and close monitoring was ongoing.  Alterative works were being prepared which could be released at short notice to take up savings on this head of account.

A bad weather contingency of £200,000 was also in place and would be reviewed on an ongoing basis.

It was noted that the total expenditure within Supervision and Management was forecast to underspend by £216,000.  The main variance was a forecast overspend of £549,000 to purchase furniture within the Furnished Homes Service but was offset by increased income from additional charges generated by more take up of the Service.  Savings were also being forecast within Supervision and Management and Rent, Rates and Taxes budget.  The provision for the final Housing subsidy claim had now been signed off by the external auditor and was slightly higher than forecast resulting in an one-off saving of £157,000 transferred to HRA reserves.

Dwelling rental income was projecting a slight over recovery of £388,000 due to an improvement in void turnaround rates, however, non-dwelling rents were forecast to under recover against budget by £35,000 due to garage voids. A programme of repair had been started in an effort to reduce the numbers of garages which were void.

Income from charges for services and facilities were forecasting an outturn of £3.940M, an over recovery of income of £635k. This was mainly due to additional income as a result of the Furnished Homes Scheme continued growth offsetting the increase in expenditure reported above.

The report provided further details of:-

-        Budget Operating Statement (Appendix A)

-        Income and expenditure charged to the HRA

-        Projected outturn based upon activity to the end of January, 2013 (Appendix A Column B)

-        Repairs and Maintenance

-        Supervision and Management

-        Income

Resolved:-  That the report be noted.

The Finance Manager, Neighbourhoods and Adult Services, submitted the proposed Housing Revenue Account (HRA) Revenue Budget for 2013/14.

The cost of delivering services in 2013/14 could be met from existing resources with a contribution from Working Balance to be made in year to underpin Service delivery and capital investment requirements in 2013/14 as identified within the 30 year Business Plan.

Appendix A of the report submitted identified the budgeted cost of delivering Services was £73.090M which could be met from budgeted income of £78.904M.  However, a contribution of £8.437M would be made towards the cost of investment in 2013/14.  This would result in an in-year transfer from the Working Balance of £2,599M to contribute to capital investment requirements.

A detailed analysis of the individual budget lines was set out in the report.

Resolved:-  That the draft 2013/14 Housing Revenue Account Revenue Budget be approved.

Consideration was given to a report presented by the Finance Manager, Neighbourhood and Adult Services, in relation to the budget monitoring during the 2012-13 financial year of the Neighbourhood General Fund.  The report detailed the projected end of year outturn position as at the end of January, 2013. 

The latest forecast showed an underspend of £160,000 against an approved net revenue budget of £2.459M.  The main variations against budget were:-

Environmental Health (-£20k)

-        Significant pressure at the start of the year due to the Vacancy Factor.  Identified savings within salaries from the merger of a number of teams into 1 joint Community Protection Team had now met the vacancy factor in full.  Further planned savings and efficiencies had been identified in Transport and Premises together with restricted spend on Supplies and Services as a result of the moratorium on all non-essential spend was resulting in a projected underspend of £20,000. 

Public Health (-£77k)

-        The restructure had now been actioned and a projected underspend within Trading Standards of £84,000 in part due to delayed recruitment

-        Minor savings on Health and Safety and Food and Drugs had been identified due to vacancies held partially reduced by a small projected overspend on Bereavement Services as a result of one-off repair costs to meet Health and Safety standards and on Animal Health due to unmet Vacancy Factor.

Housing and Communities (-£40k)

-        Pressure in Community Safety Unit as a result of slippage in implementing the new structure agreed as part of budget setting savings

-        Projected underspend due to a vacant post within the Anti-Social Behaviour Team and savings within Supplies and Services due to the downsizing of the Team

-        Area Assemblies Teams and Management and Administration had a combined projected underspend of £22,000 as a result of vacancies and one-off external funding

-        Projected underspend in the Community Leadership Fund, although this had been approved for carry forward in previous years

Strategic Housing and Investment Service (-£27k)

-        Overall pressure as a result of a small shortfall on the staffing budget including a vacancy factor.  Further sources of funding identified to offset the pressure

-        Anticipated underspend in respect of income from interest on the Equity Loan Scheme

-        Forecast underspend on the Lighting of Staircases budget based on costs to date projected to year end

-        Small overspend on Registered Social Landlords cost centre as a result of the reduction in number of Landlords in the Scheme

Housing Options (Balanced)

-        The small overspend projected on the Medical Mobility and Community Care cost centre had been offset as a result of savings due to a vacant post

Central (+£4k)

-        Previously received an income contribution from the Asylum Team as recognition of location costs.  The Asylum Grant had now ended and the work outsourced resulting in an income shortfall.  Additional vacancy factor pressure

-        Savings identified on pension and insurance costs as well as within supplies and services.  With the realignment of procurement savings, there was now an  ...  view the full minutes text for item 67.

-       Report to follow

This report was withdrawn from the agenda.