Issue - meetings

As detailed in the recommendations.

The Cabinet Member for Housing presented the Housing Revenue Account (HRA) revenue budget proposals for the 2014/15 financial year, including proposed rent and service charge changes, key areas of income and expenditure, and the level of closing balance at the year end.  Members were also asked to consider the budget proposals for the HRA Capital programme 2014/15,  which is year three of a six year improvement programme, and to note the impact of the proposed revenue budget and capital programme on the HRA 30 year Business Plan.

                        The Cabinet Member gave an overview of the background to the proposals and referred to the main considerations in the report.  She advised that the final HRA subsidy and Item 8 determinations had been received from the Welsh Government on 3 February 2014.  There was one minor adjustment in the final determinations for 2014/15 to the proposed guideline rent for Flintshire in the draft determinations that had been received on 20 December 2013, with all other aspects of the determinations remaining unchanged.   The final determinations from the WG were to increase the all-Wales average weekly guideline rent by 4.2%.

                        The Head of Housing referred to the Capital Programme 2014/15.  The total proposed capital funding for 2014/15 was £12.106m.  This figure was reduced marginally by £0.275m from the initial proposals in the January report to Cabinet and Overview and Scrutiny.  A further assessment of the likely level of capital receipts in 2014/15 had been made which took account of market conditions.  As a result the estimate for capital receipts had been reduced from £0.600m, to £0.325m.  If further land receipts materialised in 2014/15 then further work could be undertaken.   

                        Referring to Flintshire’s 30 year HRA business plan, the Head of Housing advised that the most up to date estimate of the business plan,  based on the proposed 2014/15 revenue budget and capital programme, was appended to the report.  The plan showed a projected funding shortfall of £8.005m to meet the Welsh Housing Quality Standard (WHQS) by 2020 a reduction of £6.520m on the funding shortfall projected in the 2013/14 business plan submitted to the WG.  This was a change from the initial proposals to Cabinet and Scrutiny in January which reflected the reduced level of capital receipts.  A revised business plan and revised capital programme would be submitted to Welsh Government following approval by Council.

                        The Cabinet Member for Housing proposed that Cabinet supported the recommendations as set out in the report.

RESOLVED:

That the following be recommended to County Council:-

(a)       The proposed HRA budget for 2014/15 as set out in Appendix 1, incorporating the financial assumptions in Appendix 2 and the service Improvements and Efficiencies in Appendix 3.

(b)       The level of rent and service charges for 2014/15 as set out in paragraphs 3.01 to 3.07.

(c)        The level of projected balances at 31^st March 2015 at 3.20% of total expenditure.

(d)       The proposed HRA Capital Programme as set out in Appendix 4.