GENERAL FUND REVENUE BUDGET, CAPITAL

& TREASURY MANAGEMENT STRATEGY 2021/22

 

BUDGET AMENDMENTS

 

 

Green Group Amendment 1

 

To redirect the £0.050m recurrent ‘Support to Victims of Domestic Violence’ provision in the Corporate Plan Investment Table 2 shown on page 33 as follows:

 

To support the recovery, wellbeing and resilience of early years children, young people and their mothers affected by domestic abuse in the city; the funding to be allocated as a grant through the council’s Third Sector Investment programme.

 

Further, to increase this grant by an additional £0.030m in the first year, taking the total to £0.080m in 2021/22 to recognise the impact of the pandemic on women and children, and enhance community resilience. This funding to be provided by redirecting £0.015m one-off resources from the Community Wealth Building £0.100m (reducing this to £0.085m) and redirecting £0.015m one-off resources from the Environmental Education Strategy £0.150m (reducing this to £0.135m), both of which are in the Corporate Plan Investment Table 2 shown on page 33.

 

 

Chief Finance Officer Comments:

This amendment creates additional funding of £0.080m in 2021/22 and £0.050m thereafter utilising one-off and recurrent resources already identified in the substantive budget proposals and is therefore financially viable.

 

The allocation of the grant through the Third Sector Investment Programme will need to adhere to the framework and governance of the programme.

 

GENERAL FUND REVENUE BUDGET, CAPITAL

& TREASURY MANAGEMENT STRATEGY 2021/22

 

BUDGET AMENDMENT

 

 

Labour Group Amendment 1

 

To increase the multiple permit surcharge for residents parking permits to £100 for a second vehicle and £200 for third and subsequent vehicles generating increased parking income of £0.226m.


It is proposed to utilise the additional £0.226m resources to remove the inflationary increases in residents parking permits in all controlled parking zones except for the high demand surcharge in zones Y and Z.

 

The proposed amended permit charges are as follows: -

 

 

 

Chief Finance Officer Comments:

The proposed amendment effectively results in no overall change to the parking surplus by adjusting permit charges as shown and therefore there are no implications in relation to Section 55 of the Road Traffic Regulation Act 1984 which governs the use of parking surpluses as defined under the Act.

 

 

 

 

 

 

 

GENERAL FUND REVENUE BUDGET, CAPITAL

& TREASURY MANAGEMENT STRATEGY 2021/22

 

BUDGET AMENDMENT

 

 

Labour Group Amendment 2

 

To reduce the £0.100m recurrent funding allocation for Clean-ups/Graffiti Removal (response within 24 hours – pilot for central wards) & Crime Reduction Initiatives included in the Corporate Plan Investment Table 2 shown on page 33 by £0.056m to £0.044m.


It is proposed to allocate the recurrent funding released of £0.056m to:

 

 

 

Chief Finance Officer Comments:

The proposed amendment redirects recurrent resources already identified in the 2021/22 substantive budget proposals to an alternative use and is therefore financially viable.

 

GENERAL FUND REVENUE BUDGET, CAPITAL

& TREASURY MANAGEMENT STRATEGY 2021/22

 

BUDGET AMENDMENT

 

 

Labour Group Amendment 3

 

It is proposed to: -

 

·         Remove the one-off allocation of £0.150m for investment in an Environmental Education Strategy for the City included in the Corporate Plan Investment Table 2 on page 33 of the agenda;

·         Remove the one off allocation of £0.100m for investment in Community Wealth Building to promote ethical employment practices and ensure the use of the City’s public sector spending power to procure goods and services locally for the benefit of our communities as included in the Corporate Plan Investment Table 2 shown on page 33 of the agenda;

·         Remove the one-off allocation of £1.000m for a Climate Reduction Reserve included in Table 4 on page 39.

 

This releases £1.250m one-off resources set aside within the substantive budget proposals, which it is proposed to redirect as follows:

 

·         £0.055m of one-off funding to establish a stalled sites delivery post to unlock the delivery of stalled housing sites with planning permission. Ongoing costs to be met through the delivery of additional units of housing within the city which increases the council tax base in future years therefore creating recurrent resources for this post;

·         £0.010m one-off allocation to evaluate the creation of a city wide ‘Carbon Partner’ card incentive scheme to encourage residents to move to lower carbon living through Council and private sector support;

·         £0.020m one-off allocation to fund a project to work alongside our city’s bus services to innovate our communities bus services for the benefit of all users currently and in the future;

·         £0.005m one-off allocation to establish a city-wide Community Drug summit to address the impact of drug sales, drug use and cuckooing on our communities;

·         £0.704m funding to remove, for a period of 11 years, the savings of £0.016m and £0.048m within the Environmental Health and Licencing service within the Safer Communities service area as shown on page 131 of the agenda;

·         £0.101m Direct Revenue Funding for the delivery of capital infrastructure to support the development of additional beach huts and chalets subject to an approved business case;

 

 

Chief Finance Officer Comments:

The proposed amendment redirects one-off funding of £1.250m, identified in the substantive budget proposals, to alternative revenue and capital uses over a period of years. Ultimately, it redirects sums of an equivalent value (£1.250m) and therefore is not introducing any new or additional funding requirements.

 

The proposed allocation of one-off resources over an extended period of time beyond the Medium-Term Financial Strategy (MTFS) is unusual but financially viable. There are some budgets managed by the council where the budgets change many years after the original budget decision due to unavoidable additions or costs falling out. This typically relates to the capital financing budget (e.g. where annual loan repayments fall out at the maturity of a long-term loan) and other corporately held budgets. These budgets are managed through specific processes, such as Treasury Management, and it is easy to track movements which are then reflected in the annual budget as ‘Commitment’ changes. However, this practice is not normally applied to service revenue budgets and there is no mechanism to automatically track changes beyond the Medium-Term Financial Strategy period (usually 4 years). This amendment will effectively create 11-year ‘Commitments’ which will need to fall out in 2032/33. While this can be financially supported, the practice of allocating and tracking one-off resources beyond the MTFS period is not straight forward and is not customary practice.

 

The proposed one-off allocation of £0.055m to bring forward stalled sites will require bringing forward the equivalent of 30 Band D properties each year to be self-sustaining in future years.

 

GENERAL FUND REVENUE BUDGET, CAPITAL

& TREASURY MANAGEMENT STRATEGY 2021/22

 

BUDGET AMENDMENTS

 

 

Conservative Group Amendment 1

 

To take advantage of the lower interest rates available to the council and utilise the £0.200m recurrent funding set aside to finance borrowing to support the Madeira Terrace in 2021/22, increasing the borrowing from £4.3m to £5.6m.

 

Capitalise the £0.074m recurrent funding for the Madeira Terrace Project Manager post included in the Corporate Plan Investment Table 2 on page 33 of the agenda, instead utilising the capital resources already identified for Madeira Terrace, and use the £0.074m recurrent funding to support a further £2.1m capital investment for the Madeira Terrace project.

 

The £0.100m Investment to provide a focused Race Education Strategy and delivery as shown in the Corporate Plan Investments Table 2 on page 33 is supported by a 5-year plan. It is proposed to redirect these recurrent resources after year 5 (2026/27) to provide recurrent financing costs to support £2.8m investment in Madeira Terraces from 2026/27. 

 

 

Chief Finance Officer Comments:

The proposed amendment above is financially viable, either utilising or redirecting resources already identified in the substantive budget proposals.

 

The proposal to redirect resources from a focused Race Education Strategy & Delivery after 5 years is beyond the normal Medium-Term Financial Strategy time horizon. While this can be financially supported, the practice of allocating and tracking resources beyond the MTFS period is not straight forward and is not customary practice.

 

GENERAL FUND REVENUE BUDGET, CAPITAL

& TREASURY MANAGEMENT STRATEGY 2021/22

 

BUDGET AMENDMENTS

 

 

Conservative Group Amendment 2

 

Redirect the £0.200m recurrent funding to support the Sustainable Carbon Reduction Initiative Fund (SCRIF) and the £0.200m recurrent funding to support the expansion of the Warmer Homes Initiative as set out in the Corporate plan Investment Table 2 on page 33 of the agenda, and reallocate as follows: -

 

·       £0.170m one-off allocation to the SCRIF;

·       £0.170m one-off allocation to the Warmer Homes Initiative;

·       Remove the £0.060m recurrent saving from the proposed high demand increase to residents permits as set out on page 113.

This leaves £0.340m recurrent funding from 2022/23 to be allocated as follows: -

·       Increase recurrent resources for verge grass cutting and de-weeding by £0.020m;

·       Provide £0.100m capital investment for the upgrade and refurbishment of seafront shelters. This will require £0.011m recurrent funding for the financing costs;

·       Provide £0.500m capital investment to support the purchase of a disabled access carriage for the Volks Railway. This will require £0.030m recurrent funding for the financing costs;

·       Provide £0.400m capital investment for seafront railings refurbishment or replacement. This will require £0.020m recurrent funding for the financing costs;

·       Provide a further £1.650m capital resources to support the Saltdean Lido renovation. This will require £0.059m recurrent funding for the financing costs; and

·       Provide a further £5.600m capital resources to fund future phases of the Madeira Terraces project incorporating the ambition to deliver a carbon neutral or low carbon refurbishment. This will require £0.200m recurrent funding for the financing costs.

 

Chief Finance Officer Comments:

The proposed amendment utilises £0.400m recurrent resources already identified in the 2021/22 substantive budget proposals and redirects £0.060m to permanent removal of a saving proposal and £0.340m to one-off capital investment in 2021/22, which is then further redirected to provide an annual financing budget to support borrowing for various capital investments from 2022/23 onward.

 

GENERAL FUND REVENUE BUDGET, CAPITAL

& TREASURY MANAGEMENT STRATEGY 2021/22

 

BUDGET AMENDMENTS

 

 

Conservative Group Amendment 3

 

It is proposed to replace £0.010m recurrent resources for union facilities time with £0.010m per annum from the Modernisation Fund over the next 2 years to allow time to develop more efficient operating practices as the council utilises more remote working.

 

It is proposed to allocate the £0.010m released through this proposal to reverse the saving from Adoption Allowances as shown on page 87 of the agenda, and therefore allow an inflationary increase.  

 

 

Chief Finance Officer Comments:

Union Facility Time enables trade union representatives to support their members through employment processes as well as supporting joint initiatives such as evaluation of job roles. The demand for Union Facility Time is affected by a wide range of factors including the efficiency of processes. If the proposed efficiencies cannot be identified over the next 2 years this will create a budgetary pressure of £0.010m in 2023/24.

 

GENERAL FUND REVENUE BUDGET, CAPITAL

& TREASURY MANAGEMENT STRATEGY 2021/22

 

BUDGET AMENDMENTS

 

 

Conservative Group Amendment 4

 

To redirect the £0.050m one-off resources to support delivery of the council's Covid Recovery & Renewal Programme actions and the £0.020m recurrent provision for a Low traffic Neighbourhood pilot, which are included in the Corporate Plan Investment Table 2 on page 33 of the agenda, and reinvest in : -

 

·         £0.030m one-off resource for a disabled access ramp to the beach;

·         £0.010m one-off resource to support a feasibility study for new beach huts;

·         £0.010m one-off resource to support anti-speeding measures, for example handheld speed cameras used by volunteers as part of speed watch;

 

·         £0.110m capital investment for:

o   tree planting around phone masts;

o   replacement play equipment in Patcham parks;

o   resurfacing of Hangleton Park multipurpose play area; and

o   replacement of the zip wire at Saltdean Park.

This will require £0.012m recurrent funding for financing costs; and

 

·         £0.070m capital investment in road name sign replacements and additional pothole repair funding. This will require £0.008m recurrent funding for financing costs.

 

 

Chief Finance Officer Comments:

The proposed amendment redirects £0.050m one-off resources already identified in the substantive budget proposals to alternative one-off uses. It also redirects £0.020m recurrent resources already identified in the substantive budget proposals to provide a financing budget to support borrowing for various capital investments in 2021/22.  

 

GENERAL FUND REVENUE BUDGET, CAPITAL

& TREASURY MANAGEMENT STRATEGY 2021/22

 

Housing Revenue Account Budget and Capital

investment Programme 2021/22 and

MEDIUM-TERM Financial Strategy

 

BUDGET AMENDMENTS

 

Conservative Group Amendment 5

 

To redirect the £1.000m new Carbon Reduction Reserve shown in Table 4 on page 39 of the agenda, and the £0.150m one off resources for the Environmental Education Strategy as set out in the Corporate Plan Investment Table 2 on page 33 of the agenda. This releases £1.150m one off resources to be reinvested in : -

 

·         Replacing the £0.124m recurrent funding for the Arts Sector Recovery Plan and future development of the sector included in the Corporate Plan Investment Table 2 on page 33 of the agenda, with funding over 3 years utilising £0.372m one off resources;

·         Reducing the cost to schools for the Term Time Only back-pay of £1.430m (repaid over 10 years) by £0.778m to £0.652m, to be repaid over 10 years.

 

Reallocate the £0.124m recurrent funding released from the Arts Sector Recovery Plan and future development of the sector, and allocate as follows: -

·         Remove the £0.045m saving from the proposed increase to Business Permits as shown on page 155 of the agenda;

·         Remove the inflationary increase to the contribution from the HRA towards Youth Services of £0.005m;

·         Remove the proposed £0.025m saving in Standards & Achievement within Education and Skills shown on page 85 of the agenda;

·         Remove the £0.047m saving proposed from fee increases at the Brighton Centre as shown on page 117 of the agenda;

·         Provide £0.013m capital investment in replacement bins (including dog waste bins) in open spaces including Hove Park, Hove Recreation ground, Greenleas Park and Knoll Park. This will require £0.002m recurrent funding to support financing costs.

 

Chief Finance Officer Comments:

The proposal utilises one-off resources identified in the 2021/22 substantive budget to reduce the schools’ element of the Term Time Only back-pay liability and to replace recurrent, permanent provision for the Arts Sector Recovery with time limited, 3-year resource provision. The £0.124m recurrent resources released by this proposal can therefore be applied as proposed.

 

GENERAL FUND REVENUE BUDGET, CAPITAL

& TREASURY MANAGEMENT STRATEGY 2021/22

 

BUDGET AMENDMENTS

 

Item 112

 

Conservative Group Amendment 6

 

To provide £0.050m capital investment in 4 mobile cameras for the prevention of fly tipping. This will require £0.011m recurrent funding to support financing costs which will be met from the fine income these additional cameras generate.

 

Redirect the £0.020m one-off allocation for a Travellers Strategy included within the Corporate Plan Investments Table 2 shown on page 33 and reinvest in open space sports infrastructure such as tennis court nets and basketball hoops. The open spaces to include Hangleton and Hove seafront.

 

 

Chief Finance Officer Comments:

The investment in enforcement cameras will require fines of £0.011m per annum to be levied in order to be self-financing which is considered to be achievable. The second part of the amendment redirects one-off resources already identified in the substantive budget proposals.