Agenda item - General Fund Revenue Budget, Council Tax and Capital Strategy 2019/20

Report of the Executive Director Finance & Resources (copy attached)

127.1      RESOLVED TO RECOMMEND:

(1)       The Administration’s proposed budget and Council Tax increase on the Brighton & Hove element of the council tax, comprising:

i)          A general Council Tax increase of 2.99%;

ii)        The council’s net General Fund budget requirement for 2019/20 of £203.583m;

iii)       The 2019/20 budget allocations to services as set out in the Budget book at Appendix 1 incorporating 2019/20 savings proposals contained in the 4 -Year Integrated Service & Financial Plans;

iv)       The reserves allocations as set out in paragraph 3.20 and table 3;

(2)       That Council notes the updated Medium Term Financial Strategy included in the Budget Book at Appendix 1.

(3)       That Council approves the Capital Strategy for 2019/20 at Appendix 2 comprising:

i)          The strategy for funding the investment in change and flexible use of capital receipts as set out in section 5;

ii)        The capital resources and proposed borrowing included at Annex 1;

iii)       The Capital Investment Programme for 2019/20 of £156.650m included within the Budget book at Appendix 1 and incorporating allocations to strategic funds.

(4)       That Council notes the Equalities Impact Assessments to cover all relevant budget options and their cumulative effect as set out in Appendices 6 and 7.

(5)       That Council further notes the budget decision is an indicative resourcing decision to be taken in the context of the explanation in the Legal Implications paragraph 13.3.

(6)       That Council approves the Treasury Management Strategy Statement as set out in Appendix 3 comprising:

i)          The Annual Investment Strategy

ii)        The Prudential and Treasury Indicators

iii)       The Minimum Revenue Provision policy

iv)       The authorised borrowing limit for the year commencing 1 April 2019 of £420m.

(7)       That Council notes that supplementary information needed to set the overall council tax will be provided for the budget setting Council meeting as listed in paragraph 8.3.

(8)       That Policy, Resources & Growth Committee agrees that Executive Director Finance & Resources be authorised to make any necessary technical, presentational or consequential amendments to this report before submission to full Council.

127.1      The Committee considered the report of the Executive Director for Finance & Resources which detailed the revenue and capital budget proposals for 2019/20. The Executive Director noted that the report reflected the final year of the 4 year planning framework introduced in 2016/17 and was aligned with the current central government spending review period and 4 year funding deal. 

127.2      Councillor Sykes requested information relating to the number of posts lost as a result of the funding to libraries, what was the funding provided for Hove Station and what the funding set aside for contingency regarding Brexit. 

127.3      The Executive Director stated that the loss of 10.5 Full Time Employee (FTE) posts had been reduced to 8, Hove Station funding would need to be confirmed in writing, and the contingency funding for Brexit was £210,000, but not limited to. 

127.4      The Chief Executive commented that the South East 7 drew on information from across the area and this may reveal where funding may be required and to note that contingency funding was for the resulting issues not Brexit itself.

127.5      Councillor Yates thanked the officers for the report and was pleased to see the all year round funding for the Night Shelter and the Mary Clark statue model.

127.6      Councillor Gibson requested the dates for the budget review and was informed that it was December 2018 and April 2019.

127.7      Councillor Yates wished the committee to note that the plan for funding was a 4 year cycle with ongoing reviews.

127.8      Councillor Gibson was also pleased to note the funding for the all year round Night Shelter. However, he expressed concern at the loss of high dependency bed spaces and the resulting impact on other units.

127.9      The Chair noted the comments and put the recommendations to the vote.

127.1      RESOLVED TO RECOMMEND:

(1)       The Administration’s proposed budget and Council Tax increase on the Brighton & Hove element of the council tax, comprising:

i)          A general Council Tax increase of 2.99%;

ii)        The council’s net General Fund budget requirement for 2019/20 of £203.583m;

iii)       The 2019/20 budget allocations to services as set out in the Budget book at Appendix 1 incorporating 2019/20 savings proposals contained in the 4 -Year Integrated Service & Financial Plans;

iv)       The reserves allocations as set out in paragraph 3.20 and table 3;

(2)       That Council notes the updated Medium Term Financial Strategy included in the Budget Book at Appendix 1.

(3)       That Council approves the Capital Strategy for 2019/20 at Appendix 2 comprising:

i)          The strategy for funding the investment in change and flexible use of capital receipts as set out in section 5;

ii)        The capital resources and proposed borrowing included at Annex 1;

iii)       The Capital Investment Programme for 2019/20 of £156.650m included within the Budget book at Appendix 1 and incorporating allocations to strategic funds.

(4)       That Council notes the Equalities Impact Assessments to cover all relevant budget options and their cumulative effect as set out in Appendices 6 and 7.

(5)       That Council further notes the budget decision is an indicative resourcing decision to be taken in the context of the explanation in the Legal Implications paragraph 13.3.

(6)       That Council approves the Treasury Management Strategy Statement as set out in Appendix 3 comprising:

i)          The Annual Investment Strategy

ii)        The Prudential and Treasury Indicators

iii)       The Minimum Revenue Provision policy

iv)       The authorised borrowing limit for the year commencing 1 April 2019 of £420m.

(7)       That Council notes that supplementary information needed to set the overall council tax will be provided for the budget setting Council meeting as listed in paragraph 8.3.

(8)       That Policy, Resources & Growth Committee agrees that Executive Director Finance & Resources be authorised to make any necessary technical, presentational or consequential amendments to this report before submission to full Council.