Agenda item

The Finance Manager presented a report setting out the proposed housing rent, garage rent and heating charge increases for 2010/11.

The national rent setting regime had been in place since 2002/03 which required all authorities to use a prescribed formula to calculate each tenant’s rent and to apply annual increases to actual rents to achieve the Formula Rent.  This formula for 2010/11 produced an average rent increase for Rotherham tenants of 2.91%, however, for 2010/11, the DCLG had set a national guideline rent increase of 3.1%.

The average rent for 2009/10 was £56.88 collected over 48 weeks: the proposed 2010/11 average weekly rent collected over 48 weeks would rise to £58.54, an increase of £1.66 per week.

The Garage Site Improvement Programme had received £100,000 investment in 2009/10 with substantial works having been carried out in 2008/09.  It was proposed to increase the rents by 2.91% in line with the rent increase.

In accordance with a previous decision, the District Heating Strategy was a phased increase over 3 years to achieve full recovery of district heating costs thereby avoiding any shortfall being effectively funded by all Council house tenants.

It was proposed to increase the unit rate charged from 5.25 pence per kWh to 5.93 pence per kWh (an increase of 12.9%) in order to recover the costs of the District Heating Service.

It was also proposed to increase pre-payments in 2010/11 from between 5% for 3 bed properties to 15% for 2 bed properties.  This was due to the unit rate increase of 12.95% and the increases having been adjusted depending on the levels of credits or debits residents had had in the previous year.

There were two district heating systems that were not part of the pooled, metered district heating schemes which were Beeversleigh and Tickhill Road.  It was proposed that they were increased as per the 3 year plan previously agreed by Cabinet on 17^th September 2007.  The proposed charges were:-

There was a third category of district heating, which was charged by the installation of “switch 2” card meters.  These were at St Ann’s and Swinton.  It was proposed that the charges were increased from 3.02 pence per kWh to 3.4 pence per kWh, which amounted to an increase of 12.58% and was roughly in line with the pooled increase.

The Wardens Service was currently subject to a full service review with any potential new charges likely to be implemented in or around June, 2010.  Current rates would continue until the outcomes of the review were confirmed.

It was noted that the Cabinet would consider the report at its meeting on 20th January, 2010.

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

(1)  An average rent increase of 2.91% based on the DCLG subsidy and rent proposals which result in an average increase of £1.66 to £58.54 per week when collected over 48 weeks.

(2)  That garage rents be increased by 2.91% in 2010/11.

(3)  That the unit rate for District Heating be increased from 5.25p per kWh to 5.93p per kWh (an increase of 12.95%) in order to recover the costs of the District Heating Service.

(4)  That pre-payments in 2010/11 be increased from between 5% for 3 bed properties to 15% for 2 bed properties.

(5) That the proposed charges relating to the properties at Beeversleigh and Tickhill Road be not approved and a further report be submitted to the next meeting detailing the historical reasons for these large increases

(6)  That the current rates for the Wardens Service continue, pending the outcome of the full service review.