Issue - meetings

Report of the Strategic Director of Housing and Customer Services

Presented by the Corporate Portfolio Holder

The Housing Portfolio Holder presented the report to members, outlining the consultation process which had been undertaken and the revised treasury management approach after 2022 as set out in paragraph 2.3 of the report.  He drew members’ attention to a revision to recommendation B(b), that service charges would be increased by an average of 8.07%, rather than 7.96% as set out in the report.  He highlighted the projected surplus of £1.4m which would be contributed to the Loan Redemption fund, ensuring that the full provision would be in place for repayment of the maturity loans due in 2022.

Councillor N J Rushton commented that the Loan Redemption fund had accumulated the required funds 2 years ahead of the required date and in addition, new council homes were being built.  He commented that that this was a great local housing authority in a sound position. 

It was moved by Councillor R D Bayliss, seconded by Councillor N J Rushton and

RESOLVED THAT:

A.    The assurance statement by the Section 151 Officer be noted; and

B.    Council be recommended to approve the following changes to rents and charges for 2019/20:

a.    decrease council house rents by 1%;

b.    increase service charges by an average of 8.07%;

c.     maintain central heating charges at their current levels;

d.    increase garage rent by 3.3%, in line with retail price index (RPI) inflation;

e.    increase Appleby Magna caravan park ground rent by 3.3% on the anniversary of each individual rent agreement, in line with RPI;

f.      increase lifeline charges for East Midlands Housing and private customers by 3.3%, in line with RPI; and

g.    increase shop leases by an average of 14% to gradually move them to market levels.

C.   Council be recommended to approve that sufficient surplus housing revenue be paid into the loan redemption reserve in order to repay the 2022 loan commitments. 

D.   Council be recommended to note the revised treasury management approach set out in section 2.

E.    The Director of Housing and Customer Services, in consultation with the Portfolio Holder for Housing, be authorised to make any minor amendments needed to the 2019/20 HRA budget to align with any government guidance on the matter described in paragraph 4.5 issued after budget approval.

Reason for decision: To enable the Council to set a balanced Housing Revenue Account Budget for 2019/20.