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Agenda Item No

 

The Vale of Glamorgan Council

 

Cabinet Meeting 3rd September 2012

 

Report of the Leader

 

Capital Monitoring Report for the period 1st April to 31st July 2012

 

Purpose of the Report

1.             To advise Cabinet of the progress on the 2012/13 Capital Programme for the period 1st April 2012 to 31st July 2012

Recommendations

1.             Penarth Leisure Centre Central Heating Plant - include a budget of £146K in the Capital Programme (funded from a Salix loan).

2.             Carbon Management Fund - increase the budget to £243K (funded from an internal reserve).

Reasons for the Recommendations

1-2   To allow schemes to proceed this financial year.

Background

2.             Council on the 7th March 2012, minute number C950, approved the proposed Capital Programme for 2012/13.

Relevant Issues and Options

3.             Appendix 1 details financial progress on the Capital Programme as at 31st July 2012.

4.             Members should note that Appendix 1 does now include requests for unspent committed expenditure slipped from 2011/12 into 2012/13, as approved via the Council's Urgent Decision Procedure.

5.             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.

Director of Learning and Skills

6.             Llancarfan and Gwenfo Demountables - a capital bid for upgrade of the demountable units at these two schools was accepted at £412K and incorporated into this year's Capital Programme. As tenders for the units to be replaced have come in however it has become apparent that the initial budget was insufficient to replace all units as originally planned. Officers in the Property Section are currently liaising with Education Officers to re-work the original plans in order to achieve the best outcome possible within the existing budget. 

Director of Development Services

7.             Penarth Leisure Centre Central Heating Plant - Salix Finance have offered the Council a loan to fund the upgrade of the central heating plant at the centre, to the sum of £146K with a view to increasing energy efficiency and reducing carbon emissions. The loan is repayable by the Leisure Client department, over an agreed payback period and should be funded by savings in energy costs. It is requested that Cabinet approve the inclusion of this budget in the Capital Programme.

8.             Rural Local Regeneration Business Plan 2 - Members should be aware that the budget included in Appendix 1 reflects the costs to the Council itself. It does not reflect those costs incurred by third parties.

Director of Resources

9.             Carbon Management Fund - this self-financing fund was established with the help of some £300K grant from Salix Finance in 2008/09 and is used to achieve reductions in energy costs at council premises. Over 40 projects have been completed to date, including loft and cavity wall insulation and installation of pool covers at our Leisure Centres. Works costs are recharged to clients over a payback period that mirror savings achieved in energy costs, hence replenishing the fund. There is currently £243K available in this fund that is intended to be spent on further schemes this year so it is requested that Cabinet approve the increase in the Capital Programme to this figure in order to proceed with further energy reduction schemes.

Variance between Actual Spend to date and Profiled Spend

10.        Cabinet have previously agreed that further information would be provided where schemes have a value of over £500,000 and show a variance of 20% or more between actual spend and the profile. The following scheme meets this criteria:-

11.        Disabled Facility Grants - expenditure on this budget is running behind profile because of health and safety requirements which delayed early grant approvals. This has since been resolved and approval rates have now improved. No change to the expenditure profile.

12.        Appendix 2 provides non-financial information on capital construction schemes with a budget of over £100,000.   Where a budget shown in Appendix 1 is more than £100,000 but is made up of several schemes that individually are less than £100,000, the scheme is not included in Appendix 2.

Resource Implications (Financial and Employment)

13.        The financial implications are discussed against each scheme above.

Sustainability and Climate Change Implications

14.        As set out in the report.

Legal Implications (to Include Human Rights Implications)

15.        There are no legal implications.

Crime and Disorder Implications

16.        There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

17.        There are no equal opportunity implications.

Corporate/Service Objectives

18.        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

19.        This is a matter for executive decision.

Consultation (including Ward Member Consultation)

20.        Each Scrutiny Committee will receive a monitoring report on their respective areas. This report does not require Ward Member consultation.

Relevant Scrutiny Committee

21.        All.

Background Papers

None.

 

Contact Officer

Laura Davis, Senior Accountant

 

Officers Consulted

The Directors of Resources, Social Services, Visible Services and Housing, Development Services, and the Head of Strategic Planning & Performance (Learning and Development)

 

Responsible Officer:

Sian Davies,

Director of Resources.

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