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Agenda Item No 8

The Vale of Glamorgan Council

 

Environment and Regeneration Scrutiny Committee: 14th  February 2017

 

Report of the Director of Environment and Housing

 

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

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

Background

  1. Cabinet on 14th November 2016 (minute nos. C3362 and C3363 respectively) approved the revised 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.
 

Original Revenue Budget

Revised Revenue Budget

Probable Outturn

Variance Favourable (+) Adverse (-)

 

£000

             £000

             £000

                £000

Highways & Engineering

8,302

8,092

8,092

0

Waste Management

7,422

7,643

7,713

(70)

Building Services

0

0

0

0

Transportation

4,834

4,836

4,766

70

Regeneration

2,172

2,123

2,123

0

Development Management

896

962

962

0

Total Environment & Regeneration

23,626

23,656

23,656

    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 £36k favourable variance against the profiled amended budget. The main reason is the vacant posts currently within the department, however key posts have recently been filled by Agency staff therefore it is currently projected that the budget will outturn on target.
  3. Waste Management - There is currently an adverse variance of £29k to the profiled amended budget. The variance to date is due to overspends on staffing and transportation costs. Round changes within waste collections were implemented on 1st August 2016 in order to reduce the resources required to provide the service. The service has taken several months to become imbedded while staff learn their new rounds, however, from mid-January it is anticipated that vehicle requirements will reduce by 2. This will also reduce the requirement for 4 agency staff. From March 2017 the Green Waste collection service will be double-shifted and an afternoon shift will commence. This will reduce the requirement for hired vehicles in 2017/18. It is currently anticipated that there will be a £70k adverse variance at year end which will be met from a favourable variance within Transportation.
  4. Transportation - There is currently a favourable variance of £77k against the profiled budget. Staffing costs within the division are lower than budgeted to date. The income received for producing bus passes is also higher than budgeted, which has contributed to the underspend to date. It is currently anticipated that this service will outturn with a favourable variance of £70k which will offset the projected overspend within Waste Management.
  5. Regeneration - This budget covers Economic Development, Countryside and Tourism & Events functions. There is currently a small favourable variance on this budget. Rental income at our VEC workshops remains behind target as it is proving difficult to let the persistently vacant units which are in need of some refurbishment. A capital allocation of £100k has however been identified and is included in the current year's Capital Programme in order to invest in the fabric of the buildings to increase the rental income potential at the site. This will not assist the position this year, though it is anticipated that with the investment, the targets could be met next year. The £60k target income for car parking income at Country Parks remains unachieved. The service has identified additional income streams which are anticipated to mitigate both the loss of workshop and car parking income and hence, at this stage, it is still projected 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 remains below profile. 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. It is very difficult to forecast final Planning fee income expected by March however there is some sign of improvement in recent months and the service is making every effort to contain controllable costs to mitigate any potential shortfall in income at year-end.

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 commence this year however savings will not be achieved until 2017/18. Also as previously stated, waste collection rounds have been revised as detailed previously in this report. However savings from the reduction in vehicles will not be made until 2017/18. The £50k saving relating to Public Conveniences will not be achieved this year as options are currently being explored, however, Prosiect Gwyrdd is anticipated to make a higher saving than required and this is partly offseting the shortfall on other savings.
  3. There has been a delay in the exit from the JobFit contract which has resulted in a predicted shortfall against the savings target for Regeneration. Savings required from the Vale Enterprise Centre workshops are not being realised as some units are difficult to let due to their poor condition, however, funding has now been included in the Capital Programme to resolve this issue.
  4. 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  December 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. Cross Common Bridge - It has been requested that the bridge deck removal element of this scheme, totalling £50k, is slipped into 2017/18, as this part of the project is to be procured separately to the main scheme.
  5. Asset Renewal (Traffic Management Measures) - It has been requested that a virement of £19k from this budget is made to cover additional costs incurred on the recently completed Broad Street Crossing. These costs were required to achieve an improved level of footway finishes and for the installation of a series of bollards to enhance pedestrian safety and prevent vehicle overrun as identified in consultation with residents, during the construction phase.
  6. Additional Highways / Environmental Improvements - It has been requested that the unallocated budget of £11k remaining on this scheme is vired to the Cross Common Bridge scheme in order to extend the length of the resurfacing work to the carriageway to ensure a quality finish on the scheme.
  7. Penarth Pier Supports - It has been requested that the £11k underspend resulting on this project, is also vired to the Cross Common Bridge scheme in order to extend the length of the resurfacing work to the carriageway to ensure a quality finish on the scheme.
  8. Wick to Ewenny Highway - The resurfacing improvement works planned on the highway between Wick to Ewenny have been reassessed and are no longer considered a priority. It is therefore necessary to vire this funding of £40k into the Visible Services Highway Improvements to enable funding to be used to carry out additional works identified on the Council's 3 year plan for resurfacing to ensure the highway infrastructure asset is managed and maintained in the most efficient manner.
  9. Barry Regeneration Fund - A substantial amount of the environmental improvement works to Cadoxton Moors Public Open Space has been carried out during 2016/17, including upgrading of the car park and painting the railings to the community centre.  The landscape enhancement works including tree and bulb planting needs to be undertaken during the planting season in the autumn 2017. It has therefore been requested that £11k 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

 

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