Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Economy and Environment): 6th September, 2011
Report of the Director of Environmental and Economic Regeneration
Revenue and Capital Monitoring for the Period 1st April 2011 to 31st July 2011
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 2011 to 31st July 2011 regarding those revenue and capital budgets, which form this Committee’s remit.
1. It is recommended that the Scrutiny Committee note the position with regard to the 2011/12 revenue and capital monitoring.
Reason for the Recommendation
1. That Members are aware of the position with regard to the 2011/12 revenue and capital monitoring relevant to this Scrutiny Committee.
2. Council on the 28th February 2011 (minute no 956 and 957) approved the Capital and Revenue Budget for 2011/12. Reports monitoring expenditure are brought to this Committee on a regular basis.
Relevant Issues and Options
3. The Revenue Budget and projected outturn for 2011/2012 are shown in Appendix 1.
4. Visible Services Highways Maintenance & Engineering Design & Procurement
There is currently a £11k adverse variance to the profiled budget. This is mainly due to increased spend on pot-holes due to the condition of the highway. The budget for 2011/12 takes account of the efficiency savings required. The budget will be monitored closely to ensure these savings are met and the budget outturns on target.
5. Visible Services Waste Management
There is currently a £72k favourable variance to the profiled budget. The underspend is mainly due to tonnages to landfill dropping as the food waste programme is rolled out therefore saving on costly landfill disposal. Officers have also managed to renegotiate the contract for recycling treatment which will mean a lower spend than was budgeted. The budget for 2011/12 takes account of the efficiency savings required. The budget will be monitored closely to ensure these savings are met and the budget outturns on target.
6. Visible Services Grounds Maintenance
There is currently a £59k adverse variance to the profiled budget. This is mainly due to increased spend on utility bills and repair costs to buildings owned by grounds maintenance. The budget for 2011/12 takes account of the efficiency savings required. The budget will be monitored closely to ensure these savings are met and the budget outturns on target.
7. Visible Services Support
There is currently a favourable variance of £9k to the profiled budget. This budget is to be used for any cost pressures within Visible Services throughout the financial year, therefore will be held until later in the financial year. It is anticipated that the Support budget will outturn on target. The budget for 2011/12 takes account of the efficiency savings required. The budget will be monitored closely to ensure these savings are met.
8. Economic Development and Leisure
There is currently an adverse variance of £80,000 to the profiled budget. This is mainly attributable to pressure on both expenditure and continuing falling income within the Leisure Centres. Every effort is being made to contain these variances and it is anticipated that the Division will outturn on budget.
9. Planning and Transportation
There is currently a favourable variance of £7,000 to the profiled budget. This is mainly attributable to savings on employee costs that are offsetting the adverse variance on the transportation budgets. It is anticipated that the Division will outturn on budget.
Capital Programme 2011/2012
10. Appendix 2 details financial progress on the Capital Programme as at 31st July 2011.
11. Budgets for 2011/12 have been profiled on a monthly basis and where there is a significant under/over spending of the profiled budget an explanation will be provided and the scheme will be re-profiled if necessary. This arrangement will apply to all individual schemes over £500,000 in value that have a variance of 20% or more on their profiled budget.
12. For all schemes where it is evident that the full year's budget will not be spent during the year, the relevant officers will be required to provide an explanation for the shortfall and this shall be taken to the earliest available Cabinet.
13. Visible Services Asset Renewal
It has been requested that the sum of £150,000 be transferred from the Highway Maintenance budget to the Visible Services Asset Renewal budget in order to proceed with refurbishment works at Harbour Road bridge. The current allocation within the asset renewal budget is not sufficient to cover the cost of the works required so it is necessary to transfer the budget in order to proceed. This action will require Council approval.
Network Rail agreement has now been achieved to allow this scheme to proceed over their land. The Council has in place £171,000 of funding as match funding for a Department for Transport (DfT) grant bid of £500,000, providing a total scheme budget of £671,000. The grant bid has been submitted and an outcome is expected early in September. Should the grant bid prove successful works could potentially commence in late October and with a 30 week contract period, could complete in April/May 2012. Appendix 2 indicates the anticipated full cost of the scheme and will be revised once the outcome of the DfT grant bid is known. Should this bid prove unsuccessful, a further bid for Council funding would need to be submitted for 2012/13.
Variance between Actual Spend to date and Profiled Spend
15. Vehicle Replacement Programme
Expenditure has fallen behind profile due to longer than anticipated build-times on new vehicles. It is nevertheless expected that a full spend will be achieved on this budget.
16. Appendix 3 provides non-financial information on capital schemes with a budget of over £100,000. Where a budget shown in Appendix 2 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 3.
Resource Implications (Financial and Employment and Climate Change, if appropriate)
17. As detailed in the body of the report.
Legal Implications (to Include Human Rights Implications)
Crime and Disorder Implications
19. It has been suggested that an improved environment will assist in reducing the incidence of crime.
Equal Opportunities Implications (to include Welsh Language issues)
20. There are no equal opportunity implications.
21. 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
22. The report is in accordance with the Policy Framework and Budget.
Consultation (including Ward Member Consultation)
23. The appropriate Chief Officer has been consulted. This report does not require Ward Member consultation.
Carolyn Michael (Senior Group Accountant) (01446 709778)
Director of Environmental and Economic Regeneration
Rob Quick, Director of Environmental and Economic Regeneration