Issue - meetings
Housing Revenue Account Revenue and Capital Budget 2016/2017 and Rent and Service Charge Setting
Meeting: 09/02/2016 - Cabinet (Item 7)
7 Housing Revenue Account Capital and Revenue Budgets 2016/2017 
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Additional documents:
Minutes:
Background:
This report provided details of the proposed Housing Revenue Account (HRA) capital and revenue budgets for 2016/2017 including rent, garage rent and service charges levels. The report gave a breakdown of the factors taken into account in terms of formulating the budgets for 2016/2017 including the implications of Universal Credit being introduced in Medway on a cascade approach from October 2015.
The report also provided an update on the HRA Business Plan explaining that it would be reviewed in 2016 to take account of new regulations due in 2016.
It was noted that tenants had been informed of rent charge adjustments, as set out in section 13 of the report.
The Business Support Overview and Scrutiny Committee considered this report on 2 February 2016 and its comments were set out in an addendum report.
A Diversity Impact Assessment had been carried out on the proposed budgets as set out in Appendix D to the report.
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Decision number: |
Decision: |
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The Cabinet noted the recommendations from the Business Support Overview and Scrutiny Committee. |
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14/2016 |
The Cabinet recommended to Council: a) That the rent cycle move from a 50 week rent payment year to a 52 week rent payment year for both the housing stock and garages.
b) A proposed rent decrease of 1% for the housing stock as set out in Appendix A to the report (based upon 52 collection weeks).
c) A rent increase of 2% for garages.
d) That the service charges and increases as set out in Appendix B to the report for 2016/17 be approved.
e) That the revenue budget for the HRA Service for 2016/17 as per Appendix C to the report be approved.
f) That the provision for the repayment debt continues to be based on a minimum revenue payment of 2% on the 2016/17 HRA opening outstanding debt.
g) To increase the 2016/17 HRA housing building development programme amount by the available Right To Buy (RTB) 1-4-1 capital receipts and the funds remaining from 2015/16 Minimum Revenue Provision (MRP) payment as set out in paragraph 9.5 of the report.
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Reasons:
The Council is required to carry out a review of rents and notify tenants not less than 28 days prior to the proposed date of change. The Council is required under the Local Government and Housing Act 1989 to ensure that the Housing Revenue Account does not fall into a deficit position.