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Agenda Item No. 7

 

The Vale of Glamorgan Council

 

Environment and Regeneration Scrutiny Committee: 14th March 2017

 

Report of the Director of Environment and Housing

 

Revenue and Capital Monitoring for the Period 1st April 2016 to 31st January 2017

 

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 2016 to 31st January 2017 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 no 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.

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 due to vacant posts currently within the department, however, key posts have recently been filled by Agency staff and 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. This 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 remains an adverse variance on this budget, as Planning fee income remains down, due to the lack of major planning applications being submitted by developers. This is considered to be due to uncertainty in the development industry caused by the vote to leave the European Union and the recent legislative changes to the planning system which have delayed developers submissions. There has been some sign of improvement in recent months but it is unlikely that the budget will be balanced at year-end. It is very difficult to forecast final Planning fee income expected by March however the service is making all efforts to contain controllable costs to mitigate the situation.

Capital

  1. Appendix 2 details financial progress on the Capital Programme as at 31st January 2017.
  2. Appendix 3 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. Ogmore By Sea Sustainable Transport - It has been requested that £30k is carried forward into 2017/18, as officers are currently considering options for bus parking provision at St Brides Major School. Any final decision will include Traffic Regulation Orders which have to go through a consultation process which is unlikely to be carried out within this financial year.
  5. Boverton Flooding - It has been requested that the budget for this scheme is re-profiled as follows:
 

2016/17

£000's

2017/18

£000's

2018/19

£000's

Original Profile:

1,010

1,243

0

Revised Profile:

385

1,768

100

  1. Coast Protection and Land Drainage - It has been requested that this budget is increased by £30k, due to extra grant funding being received from the Welsh Government that will be used to progress existing coast protection and land drainage schemes.
  2. WelTag Stage One Transport Network Appraisal for Dinas Powys - It has been requested that a new scheme of £20k is added to the Capital Programme, funded from a Welsh Government grant. This will fund a Transport Network Appraisal in Dinas Powys.
  3. Five Mile Lane - As part of the monitoring of spend with Welsh Government, officers have evaluated the possible spend of the scheme relating to ongoing fees, the archaeological contract and the Compulsory Purchase Order Inquiry costs. As a result, Welsh Government have re-profiled this year's spending to £750k and a full draw down of this amount is anticipated. The Council's budget therefore needs to reflect these arrangements and slippage of £250k has been requested.
  4. Barry Regeneration Partnership - The programme for the Demolition of the Canteen block at Broad Street will run into 2017/18 as negotiated agreement is required with third parties in respect of access and occupation of land.  2016/17 expenditure of £2k will cover pre-demolition survey work and technical salaries.  Slippage of the residual amount of £88k has therefore been requested.
  5. Marketing and Disposal of Nell's Point - The re-marketing of the land at Nell's Point is being held until later in 2017. Some monies are being spent on evaluation of the structural condition of the former toilet block but the remainder, totalling £35k, can be slipped in 2017/18.
  6. Feasibility Studies In Penarth Including The Esplanade - Capacity issues have meant that progress on the agreed approach has been slow over the last few months and as such any spending will now take place in 2017/18. Slippage of £47k has therefore been requested.
  7. North Penarth Open Space Improvements - A comprehensive community consultation exercise was undertaken in 2016 to ensure that there was support for proposals from local people which delayed the commencement of the scheme. It has therefore been requested that £70k is carried forward into 2017/18.
  8. Cogan Hall Farm - It has been requested that £103k is carried forward into 2017/18. The design works are progressing and this will be funded in 2016/17, however the delivery of works will be programmed for the new financial year due to capacity issues.
  9. Tackling Poverty - An increase in the budget for Victoria Gardens of £8k has been requested, in order to fund drinking fountains within the park. This is to be funded from a s106 contribution.

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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