Agenda Item No. 5

The Vale of Glamorgan Council

Environment and Regeneration Scrutiny Committee : 15th March 2018

Report of the Director of Environment and Housing

Revenue and Capital Monitoring for the period 1st April 2017 to 31st January 2018

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 2017 to 31st January 2018 regarding those revenue and capital budgets, which form this Committee's remit.

Recommendation

It is recommended that :-

1. 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

2. 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

3. 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.

4. A graph and table setting out the variance between profiled budget and actual expenditure to date is attached at Appendix 1.
5. Highways & Engineering - There is currently a £156k favourable variance against the profiled budget. The main reason is due to vacant posts currently within the department, however, key posts have been filled on a temporary basis by Agency staff and therefore it is currently projected that the budget will out-turn on target.
6. Waste Management - There is currently an adverse variance of £279k to the profiled budget. The variance to date is due to overspends on staffing and transportation costs. The waste management budget was reduced in 2017/18 for further vehicle savings however the department are unlikely to be able to make these in the short term. It is currently anticipated that the budget will out-turn with an adverse variance of £200k however this will be funded from reserves which were set aside from an underspend in the 2016/17 budget.
7. Transportation - There is currently a favourable variance of £52k 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.
8. 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 have been 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 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.
9. Regeneration - This budget covers the Countryside, Economic Development and Tourism & Events functions. There is currently a small favourable variance against the profiled budget eventhough income due to be generated from commercial opportunities at Country Parks and car parking at Cosmeston have not yet been implemented.   The position has also been mitigated by occupancy on workshop and office units being high therefore rental income is buoyant and rates costs are reduced due to less units being vacant.   The position has also improved as all non-urgent expenditure within the division has been on hold.
10. Development Management - There is currently a small favourable variance against the profiled budget due mainly to higher than anticipated building regulation fees. It is anticipated that the position will level off through the winter period so at this time it is forecast that this service will outturn on target.

2017/18 Savings Targets

11. 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.
12. 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.
13. 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.
14. 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

15. Appendix 3 details financial progress on the Capital Programme as at 31st January 2018. 
16. Visible Services Asset Renewal - An upgrade from a Zebra Crossing to a Puffin Crossing is planned next year in St Athan.  It has been requested that £135k is carried forward into the 2018/19 Capital programme to carry out these works.
17. Street Lighting Replacement - This scheme is on-going to identify faults and remedial works in conjunction with Western Power.  These works will continue into 2018/19 and it has been requested that £65k is carried forward into the 2018/19 Capital Programme.
18. Highways Infrastructure Improvements - Detail design for this scheme is complete however construction will take place next financial year.  It has been requested that £97k is carried forward into the 2018/19 Capital Programme.
19. Court Road Car Park - Car park security and installation of CCTV is being reviewed before works are committed.  It has therefore been requested that £20k is carried forward into the 2018/19 Capital Programme.
20. Llanmaes Flood Management Scheme - This scheme is at design stage and an outturn of £55k is anticipated in 2017/18.  It has therefore been requested that £145k is carried forward into the 2018/19 Capital Programme.
21. Flood Risk Management - The Council have received an increase in the award of funding for the Elfed Avenue scheme.  The original grant funding for this scheme was £25,288 as detailed in the award letter dated 29th June 2017, in a revised letter dated the 14th February 2018 Welsh Government confirm the increase in grant to £30,748.  It has been requested that this scheme budget is increased by £5,460 to be funded by Welsh Government grant.
22. Dinas Powys to Cardiff Corridor Bus Priority Measures - This budget was originally for ViSim modelling.  Highways have Welsh Government grant which expires on 31st March 2018 and would like to use this grant to pay for the ViSim modelling which is currently being undertaken.  This £17k allocation could then be used to fund consultation looking at movements through the Merrier Harrier junction, which will be carried out as part of the Dinas Powys WellTag study. It has been requested that £17k is vired to the WelTag Stage Two Transport Network Appraisal for Dinas Powys scheme.
23. Waste Recycling and Coastal Management Asset Renewal - £128k of this budget is for Coastal Infrastructure works, of which £85k is allocated for works to Barry Island Shelter.  It has been requested that the £85k is vired to the Barry Island Shelter scheme.  It has also been requested that £30k is carried forward into the 2018/19 Capital Programme for works to the Eastern Shelter next financial year.
24. Penarth Pier - Works to the pier were carried out in July 2017, with further works programmed for 2018/19.  It has therefore been requested that £23k is carried forward into the 2018/19 Capital Programme.
25. Barry Regeneration Partnership - Within this budget there is £88k for the demolition of the former canteen/ office block on Broad Street.  The start of this work has been delayed due to third party licence issues and the demolition work is now programmed to commence in Autumn 2018.  It has been requested that £85k is carried forward into the 2018/19 Capital Programme.
26. Tackling Poverty - Within this scheme there is an allocated budget for Holton Road Grant Programme.  An emergency power was approved to increase this scheme budget by £80k to be funded from Welsh Government Grant from the Regeneration Capital Pipeline Projects 2017/18.  The total budget for the Holton Road Grant scheme is now £272k, with the remaining £192k being Council matchfunding/S106 monies.  This scheme is to encourage property owners in the Town Centre to improve the external fabric of buildings, bring empty commercial units back into beneficial use and improve access to vacant or underutilised upper floors to encourage conversion to residential accommodation.  The increased budget will not be fully spent this year and therefore £114k of the Council's matchfunding will be carried forward to 2018/19.
27. Tackling Poverty - There is also an allocation of £15k within the budget for Monitoring and Evaluation, it has been requested to carry forward £15k into the 2018/19 Capital Programme to complete the preparation of the monitoring and evaluation report for the programme of projects and meet the requirements of the Welsh Government's funding  award letter (dated 29th July 2014).
28. Cosmeston Medieval Village - The total budget required for this scheme is £57k, works will include design and architect drawings, roof structure replacement and thatch replacement.  It has been requested that the budget is increased by £28k to be funded by a contribution from the regeneration revenue budget.
29. Innovation Quarter Regeneration Fund - This budget is uncommitted.  The Skills Centre Property Conversion scheme is anticipated to be over budget by £55k due to the extent of the works required to get the building back into use.  It has been requested that there is a virement of £55k to the Skills Centre Property Conversion scheme, with £35k in 2017/18 and £20k to be carried forward into the 2018/19 Capital Programme.
30. Marketing and Disposal of the Innovation Quarter - The Council will not legally complete on this sale in 2017/18.  The marketing agent's fee is not payable until legal completion; it has therefore been requested to carry forward £31k into the 2018/19 capital programme.
31. Skills Training Centre Property Conversion - An emergency power was approved to increase this scheme budget by £80k to be funded from Welsh Government Grant in relation to the Regeneration Capital Pipeline Projects 2017/18.  This scheme is for the conversion of a redundant college building into a business incubator centre for Barry, which will provide a stepping stone for existing small businesses to grow and prosper within Barry.
32. Skills Training Centre Car Park - An emergency power was approved to carry forward £99k of this scheme budget into the 2018/19 Capital Programme.   This scheme had been put on hold until costs of the property conversion were finalised.
33. Marketing and Disposal of Nell's Point - Due to a change in programming of the main car park site it has been requested that £18k is carried forward into the 2018/19 Capital Programme.
34. Cogan Hall Farm - S106 funding was made available to deliver active travel which included a crossing on Lavernock Road.  Further funding has now been awarded to upgrade the existing walking and cycling route through Cosmeston and Lavernock Road to meet active travel criteria, which is included in the capital programme under the Safe Routes in Communities - Dinas Powys to Penarth Via Cosmeston scheme.  It has been requested that these two schemes are amalgamated to enable a more co-ordinated approach to the delivery of the works and that the scheme is called 'Safe Routes in Communities - Dinas Powys to Penarth via Cosmeston.
35. Improve Pedestrian movements along Treharne Road - 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, this S106 funded scheme will be delayed until the new financial year (2018/19). The time limit for delivering this S106 scheme is over a five year period from the date that the money was received and therefore less urgent in terms of spending the funding.  It has therefore been requested that £145k is carried forward into the 2018/19 Capital Programme.
36. Improve access into Cogan Primary School - The Welsh Government has 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, this S106 funded scheme will be delayed until the new financial year (2018/19). The time limit for delivering this S106 scheme is over a five year period from the date the money is received and therefore less urgent in terms of spending funding.  It has therefore been requested that £30k is carried forward into 2018/19 Capital Programme.
37. Fferm Goch Public Open Space - There was a requirement for further consultation with the school children on this scheme.  It is anticipated that this scheme will go out to tender in April 2018, it has therefore been requested to carry forward £41k into the 2018/19 Capital Programme.
38. Dochdwy Road Public Open Space - Additional technical design was required for this complex scheme and the scheme will be going out to tender in February 2018.  Tenders are due to be returned late March.  It has been requested to carry forward £31k into the 2018/19 Capital Programme.
39. Sustainable Transport Improvements Penarth Heights - The Council are awaiting the outcome of feasibility work before this scheme can be progressed.  It has been requested that £40k is carried forward into the 2018/19 Capital Programme.

Resource Implications (Financial and Employment)

40. As detailed in the body of the report.

Sustainability and Climate Change Implications

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

Legal Implications (to Include Human Rights Implications)

42. There are no legal implications.

Crime and Disorder Implications

43. There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

44. There are no equal opportunity implications.

Corporate/Service Objectives

45. 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

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

Consultation (including Ward Member Consultation)

47. 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