Issue - meetings

Consideration was given to a report of the Director of Finance which set out the latest Housing Revenue Account (HRA) outturn estimate for 2018/19, the detailed budget for 2019/20 and strategic estimates for the four years 2020/21

through to 2023/24. The report also set out the recommended dwelling and non-dwelling rents and service charge increases to be applied from April 2019.

The Cabinet Member for Finance and Corporate Resources, the Cabinet Member for Housing and the Director of Finance presented the report.

The projected financial position for 2018/19 was estimated to be a £2.506m positive variance when compared to the original budget forecast for 2018/19 approved at the February 2018 Budget Council meeting. The majority

of this variance was attributable to the re-profiling of HRA funded capital schemes into later years due to revisions to planned spending profiles.

The financial position for 2019/20 showed an estimated HRA closing balance of £19.477m which was considered to be sufficient to meet future operational commitments and the potential financial pressures identified in the risk assessment.

The 2019/20 position has been presented after allowing for an increase in rent of 3.4%.

The Government had advised that PFI properties were exempt from Central Government’s 1% Social Rent Reduction Programme. As all Oldham housing stock was contained within two PFI schemes the 2019/20 budget would follow historic rent setting guidance of CPI plus 1%, resulting in an increase of 3.4%.

RESOLVED that:

1.        The forecast HRA outturn for 2018/19 (as per Appendix A) be noted and accepted.

2.        The proposed HRA budget for 2019/20 (as per Appendix B) be noted and accepted.

3.        The strategic estimates for 2019/20 to 2023/24 (as per Appendix D) be noted and accepted.

4.        The proposed increase to dwelling rents for all properties of 3.4% be noted and accepted.

5.        The proposed increase to non-dwelling rents as per individual contracts be noted and accepted.

6.        The proposal that PFI 2 and 4 service charges are unchanged be noted and accepted.

7.        The proposal to set PFI 2 concierge charges in line with actual costs for full recovery be noted and accepted.