Agenda and draft minutes

Councillors McNeely and Astbury declared disclosable pecuniary interests in Minute No. J42 (Housing Rent Increase) on the grounds that they paid rent as a tenant or as a garage holder.

Dispensation had been granted for all Members when dealing with the reports if they were directly affected by the outcome, allowing them to remain in the room and vote.

-        Minutes of meeting held on 11^th November, 2013

The following minutes were noted:-

AREA ASSEMBLY CHAIRS

11^th November, 2013

Present:- Councillor McNeely (in the Chair); Councillors Atkin, Beaumont, Dodson, Falvey, J. Hamilton, N. Hamilton, Havenhand, Johnston, Sims, Swift and Whelbourn.

Apologies for absence were received from Councillors Currie and Read.

12.        MINUTES OF THE PREVIOUS MEETING

            The minutes of the previous meeting held on 16^th September, 2013, were noted.

13.       ROTHERHAM BOROUGH COUNCIL BUDGET AND COUNCIL PRIORITIES CONSULTATION

Asim Munir (Community Engagement Team, Neighbourhoods and Adult Services) and Anne Ellis (Strategic Finance Team, Financial Services) made a presentation to the meeting about this Council’s budget, the Council’s service and spending priorities and the public consultation exercise now taking place to try and reduce the Council’s expenditure and manage the reducing budget in the future.

Reference was made to:-

: budget forecasting, resource projections, including Government grants  and future spending on Adult Services, Children’s Social Care, Waste Management, levy charges from Joint Authorities and capital financing costs;

: savings made in the last 3 financial years; including savings made in respect of front line services; the increasing use being made of shared services;

: the increasing demand upon services as a consequence of population changes in the Rotherham Borough area (initial data from the 2011 Census showed that the Borough’s population has risen to 257,300 and was still increasing, with a larger number of people in the older age groups and of pensionable age);

: the Council’s budget principles; focussing on the need to stimulate the local economy and to protect the most vulnerable people in society;

: the voice of residents would count in making suggestions of future budget savings;

: the methodology of the consultation was explained, including the use of an on-line forum and the list of questions to which the public will be invited to respond; workshops will take place with the Area Assemblies and with Parish Councils;

: a budget consultation event was to take place on Wednesday 13^th November 2013 at the New York football stadium, chaired by the Leader of the Council.

During discussion and questions, Members referred to the effect of the coalition Government’s spending reductions and the severe impact they have had on local authorities’ budgets and capacity to deliver services for the public.

Asim and Anne were thanked for their presentation.

14.        AREA ASSEMBLY CHAIRS/AREA PARTNERSHIP MANAGERS UPDATES

Shaun Mirfield, Area Partnership Manager, together with the respective Area Assembly Chairs and Officers, gave the following reports:-

Rotherham North

- Shaun’s colleague Helen Thorpe was introduced to the meeting;

- St. John’s Green, Kimberworth Park - a ‘task and finish group’ had been established to improve the co-ordination of work;  recent meeting about the local lettings policy have been beneficial;

- South Yorkshire Police report a reduction in the levels of crime;

- Kimberworth Park Community Partnership recently held a community event;

- Efforts were being made to try and relocate and return the base of the Safer Neighbourhood Team to suitable premises within the community;  ...  view the full minutes text for item 57.

Consideration was given to a report presented by the Finance Manager, Neighbourhood and Adult Services, on the Housing Revenue Account which was forecasting an outturn on budget with a transfer from working balances (HRA reserves) of £1.699M, a reduction of £900,000 against the approved budget.

Appendix A of the report provided the Budget Operating Statement for 2013/14 showing the various income and expenditure budget lines which made up the net cost of delivering the Service.  The latest forecast net cost of Service was £6.713M, together with Revenue contribution to Capital costs and interest received, would result in an overall deficit of £1.699M to be transferred from Working Balances.

Expenditure

Based upon expenditure and commitments to date, total expenditure was forecast to outturn at £73.011M compared to a budget provision of £73.091M, a decrease in spend of £80K.  The main variations were:-

Contributions to Housing Repairs

-          Repairs and Maintenance – Currently forecast to budget at £17.966M.  The Empty Homes budget was difficult to forecast given it being a responsive service.  At the end of October there had been 158 more completions than budgeted, the main reason being the impact of the Welfare Reform as more tenants requested a transfer to smaller properties.  Overall forecast overspend on cyclical works offset by forecast underspends within unallocated Planned works to cover forecast overspends in responsive repairs and Empty Homes budget

Supervision and Management

-          Forecast to outturn at £20.185M, overall overspend of £120k.  The main reason for the variation was the transfer to the Furnished Homes reserve due to additional income as more clients used the Scheme reduced by higher than expected staff turnover and slippage on implementing the review of structures across a number of teams

Income

-          Total forecast income collectable was £79.724M, an increase of £820k above budget

-          Dwelling rental income was projected to over-recover by £85k as well as non-dwelling rents by £6k due to additional income from garage sites

-          Income from charges for services and facilities were forecasting an outturn of £4.220M, an over-recovery of £618k mainly due to additional income on Furnished Homes due to increase in the number of clients as well as more than anticipated fee income from Right to Buy sales.   However, there was a forecast under-recovery of income from clients using Sheltered Neighbourhood Centres services as tenants opted out of the laundry charge and more than the anticipated level of voids on District Heating Schemes resulting in a slight under-recovery of income

-          Other fees and charges were forecasting an over-recovery of income of £111k related to additional unbudgeted income in respect of the sale of tenants contents insurance, recovery of Court costs, income from second hand furniture and income from utility companies for the use of solar panels

Resolved:-  That the latest financial projection against budget for 2013/14 be noted.

Consideration was given to a report presented by the Director of Housing and Neighbourhoods in relation to the budget monitoring and financial forecast for the Neighbourhoods General Fund within the Neighbourhoods and Adult Services Directorate to 31st March, 2014, based on actual income and expenditure for the period ending November, 2013.

The latest forecast showed an overall underspend of £125,000 against an approved net revenue budget of £2.463M as follows:-

Strategic Housing and Investment Service (+£10k)

-          Vacancy factor not met resulting in small shortfall on staffing budget

Housing Options (-£42k)

-          Projected underspend on the Dispersed Units Trading Account

-          Small surplus within the Private Sector Adaptations Service as a result of increased fee income

-          Projected overspend on the Key Choices Property Management Service as a result of lower than anticipated income

Housing and Communities (-£53k)

-          Forecast underspend within Area Assemblies and Supplies and Services as a result of the moratorium on non-essential spend

-          Partially reduced by a small overspend on Anti-Social Behaviour due to lower than expected staff turnover

-          Small underspend within Community Safety Unit as a result of a recent vacancy

-          Underspend also within Community Leadership Fund

Central (-£7k)

-          Small underspend due to savings on Supplies and Services

Business Regulation (-£31k)

-          Pressures on staffing costs within Health and Safety, Food and Drugs and Animal Health budgets

-          Offset by savings within Trading Standards due to vacant posts

-          Project small underspend within Licensing due to increased income relating to the new scrap Metal Dealer licences and Bereavement Services

Safer Neighbourhoods (-2k)

-          Savings within Community Protection through vacancy management and as a result of the moratorium on non-essential spend

-          Partly reduced by a small remaining pressure on income due to reduced Environmental Protection Act applications

-          Statutory health and safety work on landfill sites resulting in a forecast overspend

Consultancy spend to date was £23k in respect of data analysis relating to Green Deal Energy Efficient projects which is grant funded. There had been no spend on Agency within Neighbourhoods’ General Fund budgets.

Resolved:- That the report be received and the latest financial projection against budget for 2013/14 noted.

Consideration was given to a report presented by the Director of Housing and Neighbourhoods which represented the indicative outturn position for the 2013/14 Capital Programme.

As at the end of Period 8 (November, 2013), total spend on the HIP was £11,683,385M compared to a budget provision of £15,080,907M, an underspend of £3,397,522 (-22.5% variance).

The report submitted provided details of savings and slippage on the individual schemes of work with the overall programme and highlighted the fact that the resources not drawn down in 2013/14 would be carried forward into next year.

Further information was provided on:-

Total Capital Works to Properties

Fair Access to All

Regeneration/Neighbourhood Renewal – Private and Public Sector

Other Public Sector

Savings and slippages identified were primarily across schemes funded through the Major Repairs Allowance and would be carried forward into future years. 

Resolved:-  (1)  That the spend and forecast position to the end of Period 8 (November 2013) be noted.

(2)  That the slippage of resources, totalling £2,760,000 from 2013/14 to 2014/15 be approved.

Resolved:-  That, under Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in Paragraph 3 of Part I of Schedule 12A to the Local Government Act 1972 (information relating to the financial or business affairs of any particular person (including the Council)).

Resolved: -  That, under Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in Paragraph 3 of Part I of Schedule 12A to the Local Government Act 1972 (information relating to the financial/business affairs of any person (including the Council)).

Consideration was given to a joint report of the Finance Manager (Neighbourhoods and Adult Services) and Director of Housing and Neighbourhood Services, setting out the proposed housing rent, new build rents, garage rent and communal facilities increases for 2014/15.

The report set out in detail the proposed housing rent, new build rents, garage rent and communal facilities increases for 2014/15.  The rents had been calculated in accordance with the national rent setting regime requiring all authorities to use the prescribed formula and apply annual increases to actual rents to achieve the Formula Rent.  The Government expected that all similar properties in the same local area would have similar rent levels even if owned by different social landlords (rent convergence).  The Government had set a target for authorities to achieve rent convergence by 2015/16. 

For the 132 new Council properties built in 2011/12, the funding model assumed that rents would be aligned to the Council’s existing rent structure based on them having a higher property value and greater thermal efficiency than existing stock.  These properties had already reached convergence and, as such, the rental increase could be less than other properties.

The report also contained at Appendix A the 2014/15 draft Housing Revenue Account budget for consideration.

It was noted that the report was to be considered by the Cabinet at its meeting on the 15^th January, 2014.

Resolved:-  That Cabinet be requested to recommend to Council:-

(1)  An average rent increase of 6.57%, in accordance with the Central Government (DCLG) Rent Formula which results in an average weekly increase of £4.54 when collected over 52 weeks.

(2)  An average rent of £94.47 on new build (energy efficient) Council properties.

(3)  In line with the Retail Price Index, Garage Rents and Communal Facility charges (including where there were applicable laundry charges and cooking gas charge) be increased by 3.2%.

(4)  That the draft Housing Revenue Account budget for 2014/15 be noted.     

Consideration was given to a joint report of the Finance Manager (Neighbourhoods and Adult Services) and Director of Housing and Neighbourhood Services, setting out the proposed increases for District Heating for 2014/15.

In general, District Heating charges were made up of 2 components i.e. a weekly charge and a metered charge per kilowatt hour of heating used.  It was proposed that there be no increase in the weekly charges but an increase in kilowatt hour charges to more accurately reflect true costs.

Pooled metered schemes had a weekly pre-payment flat rate charge collected through the rent system applied to all properties dependent upon the size of the property.  The actual costs of each property’s heating was determined by meter readings of the amount of kilowatt hours of heating actually used. 

Resolved:-  That Cabinet be requested to recommend to Council:-

(1)   That weekly district heating charges be not increased.

(2)  That the various proposed increases to the kilowatt hour charges, as outlined in the report submitted, be approved as a means of achieving full cost recovery.

(3)  That, to assist some tenants, increases in the kilowatt hour charge be phased as agreed at Cabinet on 16^th January, 2013 (Minute No. C131(3) refers) with full cost recovery to be achieved by 2016/17.

The Director of Housing and Neighbourhoods reported on the tender process undertaken for the renewal and repair of roof and associated works on 23  blocks of 3 storey flats across the Borough, the works to include soffits, rainwater goods, pointing, concrete repairs and lintel replacement as required.

The tender had been offered to the market and 6 contractors invited to tender in line with Standing Orders.  5 tenders were returned and evaluated on the basis of quality and price with a 50/50 weighting.

The works were offered as 2 phases due to the geographical spread.

The works were anticipated to be a 12 weeks programme to commence late January, 2014.

Resolved:-  That the tender submitted by Morrison Facility Services be approved for the delivery of the programme of works.