The Vale of Glamorgan Council

Environment and Regeneration Scrutiny Committee: 18th January 2018

Report of the Director of Environment and Housing

Revenue and Capital Monitoring for the period 1st April to 30th November 2017

Purpose of the Report

To bring to the attention of this Scrutiny Committee, the position in respect of revenue and capital expenditure for the period 1st April to 30th November 2017 regarding those revenue and capital budgets, which form this Committee's remit.

Recommendation

It is recommended that :-

Scrutiny Committee consider the position with regard to the 2017/18 revenue and capital monitoring.

Reason for the Recommendation

That Members are aware of the position with regard to the 2017/18 revenue and capital monitoring relevant to this Scrutiny Committee.

Background

Council on 1st March 2017 (minute no 864 and 863 respectively) approved the Revenue and Capital Budgets for 2017/18. Reports monitoring expenditure are brought to this Committee on a regular basis.

Relevant Issues and Options

Revenue

The Revenue Budget and projected outturn for 2017/18 are shown in the table below. It is currently projected that for the services under this Committee to outturn within target at year end, a £725k contribution from reserves will be required.

	Original Budget	Amended Budget	Probable Outturn	Variance (+) Favourable (-) Adverse
	£000	£000	£000	£000
Highways & Engineering	8,325	8,587	8,587	0
Waste Management	7,591	7,586	7,786	-200
Transportation	4,841	4,841	4,841	0
Visible Services Reshaping Saving	(535)	(535)	(10)	-525
Transfer from Visible Services Reserves	0	0	(725)	+725
Regeneration	2,091	2,059	2,059	0
Development Management	968	1,012	1,012	0
Total Environment & Regeneration	23,281	23,550	23,550	0

A graph and table setting out the variance between profiled budget and actual expenditure to date is attached at Appendix 1.
Highways & Engineering - There is currently a £145k favourable variance against the profiled budget. The main reason is due to vacant posts currently within the department, however key posts have recently been filled on a temporary basis by Agency staff therefore it is currently projected that the budget will out-turn on target.
Waste Management - There is currently an adverse variance of £206k to the profiled budget. The variance to date is due to overspends on staffing and transportation costs. The Waste Management budget has been reduced in 2017/18 for further vehicle savings, however, the department are unlikely to be able to make these in the short term due to the increased distance that has to be travelled as all waste disposal points are now situated in Cardiff. It is therefore projected that the budget will out-turn with an adverse variance of £200k at year end. £200k had been set aside in the Visible Services Reserve, from the underspend in 2016/17, to offset such a pressure and it will be used to balance the budget in this financial year.
Transportation - There is currently a favourable variance of £65k against the profiled budget. Staffing costs within the division are lower than budgeted to date. There is also a slight underspend within the supported buses budget which is assisting the current favourable position. It is currently anticipated that this service will outturn within budget.
Visible Services Reshaping Services Savings Target - In 2017/18 there is a savings target of £525k allocated to Visible Services from the current Reshaping Services programme. The proposed means of achieving this saving was approved by Cabinet on 24th April 2017 and is through the introduction of a new target operating model for the service. This savings target is currently being held centrally within Visible Services. Staff consultation ended on 31st July 2017 and a number of changes are currently being considered as a result of the consultation. It was originally anticipated that the structure would start to be populated from late September 2017, however due to the scale of the transformation, it is now anticipated that the restructure will take effect fully from April 2018. It is envisaged that there will be a shortfall in the savings of £525k for 2017/18 and this will be met from the Visible Services Reserve.
Regeneration - This budget covers the Countryside, Economic Development and Tourism & Events functions. There is currently a small adverse variance against the profiled budget as income due to be generated from commercial opportunities at Country Parks and car parking at Cosmeston have not yet been implemented. In addition, £10k is required to complete repairs to the Medieval Village's Reeves Barn roof which has had to be completely refurbished. There are favourable variances mitigating this position, as occupancy on workshop and office units is high, rental income is buoyant and rates costs are reduced due to less units being vacant. However, in an effort to balance the budget at year-end all non-urgent expenditure elsewhere within the division is on hold.
Development Management - There is currently a favourable variance against the profiled budget due mainly to higher than anticipated building regulation and planning fees. It is anticipated that the position will level off going into the winter period so at this time it is forecast that this service will outturn on target.

2017/18 Savings Targets

Attached at Appendix 2 is a list of savings to be achieved this year for this Committee. It is anticipated that there will be shortfall against the target of £809k.
Each savings target has been given a RAG status. Green indicates that it is anticipated that the target will be achieved in full within the year, amber indicates that it is considered that the saving in the year will be within 20% of the target and red indicates that the saving to be achieved in year will be less than 80% of the target.
It is anticipated that the £244k Transport Review saving for Visible Services will not be achieved this year. As detailed earlier in this report, funding has been ringfenced in the Visible Service Fund to cover part of the projected shortfall for this year. Part of this saving will be achieved when the Waste Transfer Station is established however other means of achieving any shortfall will need to be identified within the Reshaping Services programme.
Visible Services also has a savings target of £525k under the current Reshaping Services programme which will be achieved by the introduction of a new target operating model. As stated earlier in the report it is now anticipated that the structure will not be fully populated until April 2018. This will therefore require the £525k shortfall to be met from the Visible Services Reserve. It is anticipated that the savings target will be achieved in full in 2018/19.

Capital

Appendix 3 details financial progress on the Capital Programme as at 30th November 2017.
Ogmore by Sea Sustainable Transport Improvements - Meetings have taken place with Members and the Community Council. The Community Council will submit their priorities for this scheme to the Council in February 2018. It has therefore been requested that £30k is carried forward into the 2018/19 Capital Programme.
Dimming of Street Lighting/Fitting of LED lanterns - There have been delays progressing implementation due to the need to undertake a trial. As a result, the full extent of the works will not be complete by the end of this financial year. It has been requested that £550k is carried forward into the 2018/19 Capital Programme.
Dinas Powys to Cardiff Corridor Bus Priority Measures - It has been requested to vire £5k from this scheme to the WelTag Stage Two Transport Network Appraisal for Dinas Powys scheme to enable survey and modelling work in the Dinas Powys area.
Harbour Road Overflow Car Park - The £10k budget carried forward from 2016/17 for this scheme was to fund barriers at the above car park, however, this was carried out by Network Rail's contractor as part of their work to the viaduct structure. This budget is no longer required and it has been requested that the £10k budget is removed from the capital programme.
Local Transport Fund, Road Safety and Safe Routes in Communities Capital Grants - An emergency power was approved to increase the capital programme by £714k to be funded from Welsh Government grant. The funding is allocated to the following schemes: -

- Road Safety Grant: South Road Sully £252k

- Road Safety Grant: Pen-Y-Turnpike Road / Mill Road £92k

- Safer Routes In Communities: Dinas Powys to Penarth Via Cosmeston £250k

- Dinas Powys Transport Network Study £20k

- Cardiff / Vale of Glamorgan Coastal Sustainable Transport Corridors £100k

Penarth Pier - It has been requested that this budget is increased by £30k to be funded from the Penarth Pier plaque scheme reserve for works to the boardwalk along the pier.
Improve access into Cogan Primary School - A delegated authority has been approved to include a new scheme of £30k into the Capital Programme to be funded from s106 monies. The proposed scheme seeks to improve access into the school and to improve the safety for the children during drop off times.
Court Ward Park Improvements - A delegated authority has been approved to include a new scheme of £55k into the capital programme to be funded from s106 monies. £5k is allocated in 2017/18 and £50k allocated in 2018/19.
Ffordd Y Mileniwm Footway/Cycleway - This scheme is complete and £2k underspent, however, the 'Improve Pedestrian movements along Dock View Road' scheme is estimated to be £2k above budget, due to the need to complete further utility services along the footway. It has therefore been requested to vire £2k to the 'Improve Pedestrian movements along Dock View Road' scheme.
Maendy Pedestrian Sustainable Transport Improvement - The Welsh Government have recently offered further funding (18th December 2017) to deliver schemes that grant was applied for at the beginning of the financial year but was originally unsuccessful. The funding is required to be spent by 31st March 2018. In order for the Council to accept this funding to deliver the schemes, the S106 funded schemes will be delayed until the new financial year (2018/19). The time limit for delivering the S106 schemes is over a five year period from the date that the money is received and therefore less urgent in terms of spending the funding. It has therefore been requested that £79k is carried forward into the 2018/19 Capital Programme.
St Athan Sustainable Transport Improvements - The Welsh Government have recently offered further funding (18th December 2017) to deliver schemes that grant was applied for at the beginning of the financial year but was originally unsuccessful. The funding is required to be spent by 31st March 2018. In order for the Council to accept this funding to deliver the schemes, the S106 funded schemes will be delayed until the new financial year (2018/19). The time limit for delivering the S106 schemes is over a five year period from the date that the money is received and therefore less urgent in terms of spending the funding. It has therefore been requested that £147k is carried forward into the 2018/19 Capital Programme.
Fferm Goch Sustainable Transport Improvements - Officers have discussed options with the Community Council and have given the Community Council time to consider the options. A response is due in February 2018 to enable schemes to be prepared in the new financial year. It has therefore been requested that £70k is carried forward into the 2018/19 Capital Programme.
Colwinston Play Area - It has been requested that a new scheme is included in the capital programme with a budget of £48k, to be split £5k in 2017/18 and £43k in 2018/19 to be funded from s106 monies. This work will enhance the play area at Colwinston.

Resource Implications (Financial and Employment)

As detailed in the body of the report.

Sustainability and Climate Change Implications

There are no direct implications arising from this report.

Legal Implications (to Include Human Rights Implications)

There are no legal implications.

Crime and Disorder Implications

There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

There are no equal opportunity implications.

Corporate/Service Objectives

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

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

Consultation (including Ward Member Consultation)

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