The Council considered the joint report of the Director of Governance & Organisational Development and Deputy Chief Executive/Director - Resources concerning the Housing Revenue Account budget for 2019/2020. Under the Council’s Constitution the Housing Revenue Account Self Financing Business Plan would be formulated and reviewed by the Policy & Finance Committee and recommended to Council for approval. A major element of the Business Plan comprised the annual Housing Revenue Account budget.
The annual Housing Revenue Account budget for 2019/20 and financial plan to 2022/23, including proposals for rent levels for 2019/20, was considered by the Policy & Finance Committee at their meeting held on 24 January 2019.
The report considered by the Policy & Finance Committee on 24 January 2019 was attached as an appendix to the report. This provided the actual outturn of the HRA for 2017/18; examined the proposed income and expenditure on the HRA for 2019/20 in accordance with Section 76 of the Local Government and Housing Act 1989, to avoid a deficit on the Housing Revenue Account; provided the indicative figures of income and expenditure for the financial years 2020/21 to 2022/23; set rent levels and service charges for Council housing properties with effect from 1 April 2019; set charges for garage rents, plots and garage ports with effect from 1 April 2019; set housing support service charges and all other service charges with effect from 1 April 2019; set rent levels for the Councils temporary accommodationwith effect from 1 April 2019; detailed the annual management fee payable to Newark and Sherwood Homes, in accordance with the Management Agreement.
In respect of the annual management fee payable to Newark and Sherwood Homes it was reported that this was still to be formally agreed with the Council. Therefore delegated authority had been given to the Director of Governance and Organisational Development to agree this with Newark and Sherwood Homes which would inform an updated HRA Budget once finalised
In the report to the Policy & Finance Committee it was also noted that in 2019/20, 53 Mondays fell in the financial year, which had created an issue with rent collection when a tenant was in receipt of Universal Credit and whilst these matters were being considered the HRA budget had been prepared on a 52 week rent basis.
AGREED (unanimously) that:
(a) the Housing Revenue Account budget for 2019/20 as set out in Appendix A to the Policy & Finance report, noting the delegation to the Director of Governance and Organisational Development to agree the 2019/20 Management Fee with Newark and Sherwood Homes, be approved;
(b) additional payments for the management of Gladstone House be made to Newark and Sherwood Homes, subject to the Homes & Communities Committee approval;
(c) the rent of all properties in the Housing Revenue Account, as at 31 March 2019, be decreased by 1% in accordance with Welfare Reform and Works Act with effect from 1 April 2019;
(d) the rent on temporary accommodation be increased by CPI plus 1% (3.4%) with effect from 1 April 2019;
(e) all services charges and support charges be increased by CPI plus 1% (3.4%) with effect from April 2019; and
(f) garage, garage plot and garage port rents be increased by CPI plus 1% (3.4%) with effect from 1st April 2019.