Agenda item

Report of Deputy Leader/Portfolio Holder for Resources and Neighbourhood Regeneration

This decision is not subject to call-in as Councillor Brian Parbutt, Chair of the Overview and Scrutiny Committee, has agreed that the decision is reasonable in all the circumstances and should be treated as a matter of urgency as the Council’s budget has to be approved at the Full Council meeting on 3 March 2014 (which is before the call-in period has ended).

The Board considered the Deputy Leader/Portfolio Holder for Resources and Neighbourhood Regeneration’s report presenting the Council’s Medium Term Financial Plan (MTFP) for 2014/15 - 2016/17 and the statutory calculation for the Council’s 2014/15 revenue budget requirement and the steps needed to set the Council Tax level for approval at the meeting of the City Council in March.

An addendum to Annex 4 of the report detailing the rent setting consultation summary results was circulated in advance of the meeting.

RESOLVED

(1)  for the 2013/14 Budget (Annex 1 of the report) to:

(a)  note the current forecast outturn for the 2013/14 General Fund and Housing Revenue Account (HRA) revenue budgets and capital programmes as detailed within Annex 1 of the report;

(b)  endorse the allocations from Contingency as set out in Table 1D of Annex 1 of the report;

(c)  approve the budget virements and reserve movements set out in Table 3 and Appendices C and D of Annex 1 of the report;

(2)  for the MTFP 2014/15 - 2016/17 - Overall and Focus on Revenue Element (Annex 2 of the report) to:

(a)  note:

(i)  the General fund revenue aspects of the MTFP as set out in Annex 2 of the report;

(ii)  that the Fire Authority have not formally approved their final Council Tax increases and that the final precepts will be confirmed prior to the City Council meeting on 3 March 2014;

(b)  note, endorse and recommend to City Council and, in so doing, specifically incorporate the statutory determinations set out in section 4 of the report:

(i)  the General Fund net budget requirement for 2014/15 of £277.230 million;

(ii)  a basic amount of Council Tax level (Band D) of £1,431.80 that will raise a total of £85.835 million (an increase of 1.95%);

(iii)  delegating authority to the appropriate Directors to implement all proposals after undertaking any necessary consultation;

(3)  for the MTFP 2014/15 - 2016/17 – Capital Programme Element (Annex 3 of the report) to:

(a)  note, endorse and recommend to City Council the Capital Programme as detailed in Appendix D of Annex 3 of the report;

(b)  approve the £2.140 million for district heating pipes as detailed in Annex 3 of the report;

(4)  for the MTFP 2014/15 - 2015/16 - HRA Element (Annex 4 of the report) to:

(a)  approve, with effect from 31 March 2014 (subject to consultation):

(i)  an average increase in rent levels for all Council owned dwellings within the HRA of 7.50%;

(ii)  an increase in service and heating charges of 3.2%;

(iii)  an increase in the service charge for independent living of 3.2%;

(iv)  an increase in weekly garage rents of £0.25 per week (52 week basis);

(v)  an increase in the Emergency Alarm charge of £0.080 per week (52 week basis);

(b)  approve the:

(i)  cost pressures totalling £0.981 million as detailed in Annex of the report;

(ii)  HRA working balance to be set at £4.000 million;

(iii)  Public Sector Capital Programme as set out in Appendix B of Annex 4 of the report;

(iv)  maintenance of a capital allowance to avoid pooling of receipts generated from HRA land and building sales to be used to fund affordable housing and regeneration schemes as set out in Annex 4 of the report;

(c)  agree in principal to the introduction of a tenant reward scheme to be implemented in 2014/15 as set out in Annex 4 of the report, subject to ongoing consultation;

(d)  note, endorse and recommend to City Council the 2014/15 HRA budget as set out in Appendix A of Annex 4 of the report;

(5)  to note and endorse the recommendations of the Chief Finance Officer in respect of the robustness of the estimates made for the purpose of all aspects of the budget calculations and the adequacy of reserves as detailed in Annex 5 of the report;

(6)  to note the outcomes of the budget consultation and communication as detailed in Annex 6 of the report;

(7)  to delegate authority to the Deputy Chief Executive/Corporate Director for Resources, in consultation with the Deputy Leader/Portfolio Holder for Resources and Neighbourhood Regeneration, to finalise the MTFP for publication following the approval of the relevant elements of the budget by City Council.

Reasons for decisions

To enable the Board to approve rent increases and endorse and recommend the MTFP 2014/15 - 2016/17 to the City Council for consideration on 3 March 2014 when it meets to set the budget and Council Tax for 2014/15.

Other options considered

A large number of individual cost reductions, income levels and investment options are considered throughout the budget process which, in turn, impacts on the level of reserves. The final overall package of detailed proposals which seek to balance levels of investment, cost reduction and an appropriate level of income are presented in the report.

The Council could have accepted the offer of a Council Tax Freeze Grant from the Government for 2014/15, which would have reduced the proposed Band D Council Tax increase of £1.95% to 0% in 2014/15 but this would have added an on-going net pressure of £0.568 million.

The options for increasing rents have been considered to mitigate the impact on tenants balanced against protecting investment in the stock to meet tenant priorities.  Tenants have been consulted on the preferred option of a 7.5% ret increase with the introduction of a tenant reward scheme for responsible tenants (equating to a 4.68% increase for responsible tenants) or a flat rate increase of 5.48% in line with the existing rent policy.