Agenda and minutes

To note the attendance at this meeting of any duly appointed Reserve Members.

Reserve Members may attend meetings:-

(i)                 to take the place of an ordinary Member for whom they are a reserve;

(ii)               where the ordinary Member will be absent for the whole of the meeting; and

(iii)             the meeting notes at the start of the meeting at the item ‘Reserves’ that the Reserve Member is or will be attending as a reserve;

(iv)              if a Reserve Member whose intention to attend has been noted arrives after the commencement of the meeting, then that Reserve Member can only act as a Member from the start of the next item of business on the agenda after his/her arrival.

RESOLVED:  To note that there were no Reserve Members in attendance at this meeting.

To receive declarations of personal or prejudicial interests, arising from business to be transacted at this meeting, from:

(a)               all Members of the Committee, Sub Committee, Panel or Forum;

(b)               all other Members present in any part of the room or chamber.

Agenda item:  4. INFORMATION REPORT - Budget Planning 2012/13 to 2015/16

Councillor Camilla Bath declared a personal interest on the above item in that she attended monthly meetings of the Eastcote Lane Tenants’ and Residents’ Associations.  She would remain in the room whilst the matter was considered and voted upon.

Councillor Bob Currie declared a personal interest on the above item in that she attended monthly meetings of the Eastcote Lane Tenants’ and Residents’ Associations.  He would remain in the room whilst the matter was considered and voted upon.

Councillor Mano Dharmarajah declared a personal interest on the above item in that she attended monthly meetings of the Eastcote Lane Tenants’ and Residents’ Associations.  He would remain in the room whilst the matter was considered and voted upon.

To receive deputations (if any) under the provisions of Executive Procedure Rule 50 (Part 4D of the Constitution).

RESOLVED:  To note that no deputations were received at this meeting.

Report of the Divisional Director, Housing Services.

An officer introduced a report which outlined potential income options and provided an update on the Housing Revenue Account (HRA) in advance of a draft budget being considered by Cabinet in December 2011.  She addressed several key issues as part of the report.

HRA Reform

·                    As part of the current Government subsidy system, the Council paid approximately £7 million a year to fund housing needs nationally.  This process would change in April 2012, subject to the approval of the Localism Bill which was being considered by Parliament.

·                    If approved, the Council would become self-financing, meaning that all rent and services charges would be kept without having to contribute towards the Government subsidy scheme.  However, the Council would effectively need to buy its way out of the scheme by calculating its estimated earnings over the next thirty years.  This would equate to approximately £85 million.

·                    If the Council were to borrow £85 million from the Government to meet the buy out clause, interest rates seemed favourable, ranging from 1.55% to 2.60% for longer term borrowing.

In response to questions, the officer advised that:

·                    Paying interest of 1.55% on £85 million would equate to approximately £1.3 million per year, a potential saving of approximately £5.5 million on the current Government subsidy scheme.

·                    The fluctuation of employment costs was due to additional staff being employed for specific short-term projects.

·                    Utility costs were difficult to budget.  More robust data was needed to obtain a more accurate picture of utility costs per year.

·                    Key risks were inflation and interest rates.  As the Council would be new to self-financing, a low rate short-term loan would possibly be most appropriate.  Different scenarios would be looked at to identify risk prior to any loan being taken.

·                    £85 million would be the minimum amount required.  This could increase by approximately £5 million.

·                    The Council did not have a separate debt portfolio.  This meant that a decision would need to be made whether or not to separate the £85 million from the existing £60 million Council owned debt.

·                    Approximately 70% of rent was paid by those in receipt of housing benefit.  This could generate issues in terms of Government proposals to reform the benefit system.  Officers would investigate such issues and ensure that a robust plan was formulated.

·                    Limitations on the amount of rent the Council could charge would still apply.

·                    Increasing revenue by providing alternative means of energy could take place in future years.  The HRA was ring-fenced with set processes to follow which did not currently cater for such proposals.

The Divisional Director of Housing Services summarised the views of the TRAs present by stating that officers would undertake to:

·                    Tackle social aspects of increased poverty.

·                    Seek innovative ways to improve and maintain housing stock.

·                    Source the renewable, most efficient means of energy.

·                    Formulate a strategy to cater for a changing demographic.

·                    Ensure the best quality of care for the vulnerable.

Facility Charges

·                    For tenants and some leaseholders in sheltered accommodation, the Council provided utilities for heating and  ...  view the full minutes text for item 68.