Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Economy and Environment) 4th October 2011
Report from the Director of Environmental and Economic Regeneration.
Revenue and Capital Monitoring for the period 1st April 2011 to 31st August 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 August 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.
Reasons for the Recommendations
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 £50k 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 out-turns on target.
5. Visible Services Waste Management - There is currently a £37k favourable variance to the profiled budget. The current underspend is mainly due to tonnages to landfill dropping as the food waste programme is rolled out therefore saving on costly landfill disposal. Also, officers have 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 out-turns on target.
6. Visible Services Grounds Maintenance - There is currently a £51k 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 out-turns on target.
7. Visible Services Support – There is currently a favourable variance of £12k to the profiled budget. This budget is to be used for any cost pressures within Visible Services throughout the financial year, therefore it will be held until later in the financial year. It is anticipated that the Support budget will out-turn 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 £59,000 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 £35,000 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 August 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. Barry Island Addizone - Cabinet on 6th July 2011, (Minute no. C1362), approved the inclusion of a WG grant from the Barry Regeneration Area Funding of £160,316 for the establishment of an Addizone multi-sports facilities designed in the shape of the London 2012 Olympic logo and sponsored by Adidas on Barry Island. A vacant site adjacent to Paget Road has been identified as offering the best location for ease of access and proximity to existing leisure facilities. In addition to the WG grant funding, council funding of £24,122 has been earmarked from the Barry Regeneration Area fund (this has been reflected in Appendix 2), as well as an additional £55,356 from s106 funding received in respect of the development of residential units at Jackson’s Quay, Barry Waterfront. The s106 income is not as yet reflected in Appendix 2 and as such it was requested that Cabinet approve the inclusion of this funding in the Capital Programme in order to complete the budget. This action will also require Council approval.
14. 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)
15. As detailed in the body of the report
Legal Implications (to Include Human Rights Implications)
Crime and Disorder Implications
17. It has been suggested that an improved environment will assist in reducing the incidence of crime.
Equal Opportunities Implications (to include Welsh Language issues)
18. There are no equal opportunity implications
19. 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
20. The report is in accordance with the Policy Framework and Budget
Consultation (including Ward Member Consultation)
21. 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