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Agenda Item No 5

The Vale of Glamorgan Council

 

Environment and Regeneration Scrutiny Committee: 11th  October 2016

 

Report of the Director of Environment and Housing

 

Revenue and Capital Monitoring for the period 1st April to 31st  August 2016

 

Purpose of the Report

  1. To bring to the attention of this Scrutiny Committee, the position in respect of revenue and capital expenditure for the period 1st April to 31st August 2016 regarding those revenue and capital budgets, which form this Committee's remit.

Recommendation

It is recommended that :-

  1. The position with regard to the 2016/17 revenue and capital monitoring is noted.

Reason for the Recommendation

That Members are aware of the position with regard to the 2016/17 revenue and capital monitoring relevant to this Scrutiny Committee. 

Background

  1. Council on the 2nd March 2016 (minute no 885 and 884 respectively) approved the Revenue and Capital Budgets for 2016/17. Reports monitoring expenditure are brought to this Committee on a regular basis.
  2. Following changes to the remit of Scrutiny Committees, Leisure, Parks, Sport and Play budgets are now included under the Healthy Living and Social Care Scrutiny Committee.

Relevant Issues and Options

Revenue

  1. The Revenue Budget and projected outturn for 2016/17 are shown in the table below and is currently forecasting a balanced budget.

Environment & Regeneration               

Revenue Budget

Probable Outturn

Variance

(+ ) Favourable

(-) Adverse

 

£000

£000

£000

Highways & Engineering

8,302

8,302

0

Waste Management

7,422

7,422

0

Building Services

0

0

0

Transportation

4,834

4,834

0

Regeneration

2,172

2,172

0

Development Management

896

896

0

Total Environment & Regeneration

23,626

23,626

                       0

       
  1. A graph and table setting out the variance between profiled budget and actual expenditure to date is attached at Appendix 1.
  2. Highways & Engineering - There is currently a £55k favourable variance against the profiled budget. The main reason is the vacant posts currently within the department. This underspend could be used to contribute towards overspends elsewhere within the Directorate if required and therefore it is shown as achieving a balanced budget at year end.
  3. Waste Management - There is currently an adverse variance of £209k to the profiled budget. This variance is due to overspends on staffing and transportation costs. The 2016/17 budget included a savings target of £253k for a review of transport costs. Round changes within waste collections were implemented on 1st  August 2016 and will contribute towards the required savings. It is anticipated that this change will therefore reduce the current overspend position by year end however if it cannot be fully achieved, provision will be made elsewhere within the Directorate.
  4. Transportation - There is currently a favourable variance of £53k against the profiled budget. Staffing costs within the division are lower than budget to date and also income received for producing bus passes is higher than budget. This underspend could be used to contribute towards overspends elsewhere within the Directorate if required and therefore it is shown as achieving a balanced budget at year end.
  5. Regeneration - This budget covers Economic Development, Countryside and Tourism & Events functions. The budget to date is currently on target. The income received from the VEC workshops is currently below budget and an exercise is underway to maximise income. It is considered that essential refurbishment works to the vacant units will be required in order to improve occupancy rates, however, funding for such works will need to be identified. The Service has identified some additional income streams available to them this year which are anticipated to mitigate this loss of income and at this stage it is still considered that this service will outturn on target.
  6. Development Management - There is an adverse variance relating to the Local Development Plan (LDP) as expenditure was delayed from 2015/16, however, funding was set aside in reserves for this purpose in the last financial year and will therefore be drawn down to offset this position. Planning fee income is less than the anticipated profile for August. This is considered to be due to uncertainty in the construction market as a result of the referendum for the United Kingdom's exit from the European Union, however, the Service is hoping that the situation will improve by year-end. As such, at this stage it is anticipated that this service will outturn on target though Members will be kept updated on the situation.

2016/17 Savings Targets

  1. Attached at Appendix 2 is a list of savings to be achieved this year for this Committee.
  2. While progress has been made towards achieving the savings, there has been a delay in commencing some of the schemes and therefore the full year target is not anticipated this financial year. £1.2m has been included in the capital programme for the installation of LED lighting. Installation will be undertaken this year however a full year saving will not be achieved until 2017/18. Also as previously stated, waste collection rounds have been revised from 1st August 2016 with the aim of reducing the resources required. However it is unlikely that the full saving will be made in 2016/17. There has also been a delay in the exit from the JobFit contract which has resulted in a predicted shortfall against the savings target for Regeneration. Where savings will not be achieved in year, services will seek to cover the shortfall on a one off basis from other areas.

Capital

  1. Appendix 3 details financial progress on the Capital Programme as at 31st August 2016.
  2. Appendix 4 provides non-financial information on capital construction schemes with a budget of over £100k.
  3. For all schemes where it is evident that the full year's budget will not be spent during the year, the relevant officers are required to provide an explanation for the shortfall and this shall be taken to the earliest available Cabinet.
  4. Safe Routes to Communities - It has been requested that the Port Road Cycle Way budget is increased by £44k and a new scheme is included under this heading at the value of £30k for cycle counters. Both will be funded from s106 monies.
  5. Penlan Cycle/Footway - It has been requested that this scheme is increased by £4k, funded from s106 monies.
  6. Office Alterations - As part of the closure of the 2015/16 accounts, funding was set aside for office alterations. It has therefore been requested that £35k is included in the capital programme for works to the Alps and Court Road Depots.
  7. Fferm Goch - Initial works have been undertaken on this Section 106 funded scheme e.g. site visit and topographical survey however this scheme has now been prioritised for project implementation to be undertaken in 2017/18. It has therefore been requested that £47k is carried forward into 2017/18.
  8. Barry Regeneration Partnership - There is a budget of £54k included in the Barry Regeneration Programme for works to be undertaken at Gladstone Gardens. In addition, there is also a budget for works to the garden of £303k held under the Castleland Renewal Area budget. The work is being procured as one scheme and therefore it has been requested that the budgets are merged and that £54k is vired from the Barry Regeneration budget to the Castleland Renewal Area budget.
  9. Tackling Poverty - Late additional grant funding was received from Welsh Government in the previous year and was used to fund the Barry Parks Enhancement Programme. These schemes were to be funded from Council sources and therefore budget is now available to be used for other purposes. It has therefore been requested that £70k is vired to the Barry Regeneration scheme to be utilised for the Harbour Road Car Park Cycleway scheme.
  10. Five Mile Lane - This is a £25.8m scheme which will be undertaken over several years. The original programme had anticipated that land purchases would be undertaken this year. However there have been delays in bringing forward the Compulsory Purchase Orders and therefore it is unlikely that land will be purchased this financial year. It has therefore been requested that £5.397m is carried forward into 2017/18.

Resource Implications (Financial and Employment)

  1. As detailed in the body of the report.

Sustainability and Climate Change Implications

  1. There are no direct implications arising from this report.

Legal Implications (to Include Human Rights Implications)

  1. There are no legal implications.

Crime and Disorder Implications

  1. There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

  1. There are no equal opportunity implications.

Corporate/Service Objectives

  1. Effective monitoring assists in the provision of accurate and timely information to officers and Members and in particular allows services to better manage their resources.

Policy Framework and Budget

  1. The report is in accordance with the Policy Framework and Budget.

Consultation (including Ward Member Consultation)

  1. The appropriate Chief Officer has been consulted. This report does not require Ward Member consultation.

Background Papers

None

Contact Officer

Carolyn Michael (Operational Manager - Accountancy)

Officers Consulted

Director of Environment and Housing

Responsible Officer:

Miles Punter, Director of Environment and Housing

 

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