Social Work & Housing Committee

Thursday, 24 January 2002 at 2.00 pm

Present:  Councillors Jackson, McCabe, Mitchell, Morrison (D), Nimmo, O’Rourke, Rebecchi and Robertson (A). 

Chair: Councillor McCabe presided.

In Attendance: Chief Executive, Mr G Douglas (for Director of Legal & Support Services), Director of Social Work & Housing Services and Head of Financial Services.

Apologies: Councillor McGraw.

The following paragraph is submitted for confirmation or otherwise.

87

Housing Revenue Account Budget 2002/2003

87

There was submitted a report by the Director of Social Work & Housing Services on the proposed Housing Revenue Account Budget 2002/2003.  The report advised that the estimated deficit in the Housing Revenue Account for 2002/2003, excluding any savings or application of balances, was £3,078,830 which equated to an average rent increase of £6.70 per house per week on a 48 week basis.

Following discussion, Councillor McCabe moved:

(1)  that an average rent increase of £2.41 per house per week on a 48 week basis be agreed and implemented from 4 April 2002; and

(2)  that the reduced increase in rents be funded through (a) implementation of staff turnover savings of 2% (£72,750), (b) capitalisation of major repairs and heat leasing in the amount of £850,000 and (c) application of a Repairs and Renewals Fund balance of £1,045,822. 

As an amendment, Councillor Mitchell moved:-

(1)  that the estimated deficit of £3,078,830 in the Housing Revenue Account 2002/2003 be reduced through (a) savings of £150,000 within the Supervision and Management Budget, the savings to be identified by the relevant Officers, (b) implementation of staff turnover savings of 2% (£72,750), (c) capitalisation of major repairs and heat leasing in the amount of £850,000 and (d) the application of a Repairs and Renewals Fund Balance of £856,000, resulting in a total saving of £1,928,000; and

(2)  that the resultant shortfall of £1,150,000 be met by a rent increase of £2.50 (approximately 5%) per house per week on a 48 week basis.

On a vote, 3 Members voted for the amendment and 5 for the motion which was declared carried.

Decided:

(1)  that an average rent increase of £2.41 per house per week on a 48 week basis be agreed and implemented from 4 April 2002; and

(2)  that the reduced increase in rents be funded through (a) implementation of staff turnover savings of 2% (£72,750), (b) capitalisation of major repairs and heat leasing in the amount of £850,000 and (c) application of a Repairs and Renewals Fund balance of £1,045,822.