Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Economy and Environment) 17th January 2012
Report from the Director of Environmental and Economic Regeneration
Revenue and Capital Monitoring for the period 1st April 2011 to 30th November 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 30th November 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. Cabinet on 16th November 2011 (min no c1511) approved the amended 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 £135k 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 £118k favourable variance to the profiled budget. The current underspend is mainly due to tonnages to landfill dropping as the food waste and co-mingled recycling programmes are 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 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 £9k 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 £113k to the profiled budget. This budget was originally to be used for any cost pressures within Visible Services throughout the financial year. However the budget is to be held for the projected overspend within Leisure, therefore it is projected that there will be a £170k favourable variance at year end. 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 £259,000 to the profiled budget. The anticipated overspend on this service previously reported of £366k has increased to £420k due to continued cost pressures on the Leisure Centre budget. The additional overspend of £54k will be met from savings in the Visible Services budget.
9. Planning and Transportation - There is currently an adverse variance of £11k to the profiled budget. There is an anticipated overspend on the Mainstream Education transport budget (managed by this Division) of £54,000, which will be met from the Education budget. There continues to be cost pressures on the service but it is anticipated that they will be met from existing estimates.
Capital Programme 2011/2012
10. Appendix 2 details financial progress on the Capital Programme as at 30th November 2011.
11. 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.
12. Coldbrook Flood Risk Management - This scheme has had to be re-assessed following a reduction in support from WG. The profiled expenditure for this project has been re-worked and, in agreement with WG, it was requested that the budget be reduced to £200,000 which is the maximum achievable for this financial year. Further funding has been included in the 2012/13 budget, as detailed in the Final Capital Programme Proposals report.
13. Llanmaes Flood Management - It has become necessary to withdraw this capital budget as prospective grant funding from WG has not been forthcoming, due to a reduction in funding levels at WG. The Director for Environmental and Economic Regeneration will be taking a separate report on flood management schemes to Cabinet shortly.
14. Rural Local Regeneration Programme, Business Plan II - This budget, for £200,000, represents the cost to the Council over the full 3 year life of this rural regeneration grants regime and as such should be allocated in the Capital Programme over the 3 years. Officers at the Cowbridge Old Hall, who administer the scheme, have estimated the requirement for the Council's match-funding as £20,000 for this year (efforts are still employed in completing Business Plan 1 this year), a further £60,000 for 2012/13 and £120,000 for 2013/14. As such it has been requested that Cabinet and Council approve the re-profiling of the budget over this period.
15. Barry Island Footbridge - Approval has now been received from the Department for Transport of £500,000 towards the construction of a new footbridge. A condition of the grant is that the money be spent before the 31st March 2013 so the bulk of the works can be undertaken in 2012/13, funded from this WG grant. As it is still intended to commence the scheme this financial year, the Council's approved funding of £171,000 will be spent first. It is intended that the WG grant be included in the 2012/13 Capital Programme to proceed with construction of the bridge. A separate report will be taken to Cabinet on this scheme by the Director of Environmental and Economic Regeneration.
16. Leisure Centre Refurbishment - This £2 million allocation for major refurbishment works at our leisure centre buildings has been on hold, pending the appointment of the new Leisure Management Partner, in order that they can be party to the discussions on planned works. As the appointment has not yet been made, there is now insufficient time for this budget to be spent by year-end, though works are still required next year. It was therefore requested that Cabinet, and Council, approve the slippage of £1,975,000 from this year's budget into 2012/13.
Variance between Actual Spend to date and Profiled Spend
17. 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 schemes meet this criteria:-
18. Vehicle Replacement Programme - As previously explained to Cabinet, there had been delays in procuring vehicles through the All Wales Public Sector Framework Agreement which has resulted in delayed vehicle procurement. Vehicles to the value of £1 million have been ordered to date, though there is still a possibility that long build times for some of the vehicles mean that all may not necessarily be delivered by 31st March.
19. 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)
20. As detailed in the body of the report.
Legal Implications (to Include Human Rights Implications)
Crime and Disorder Implications
22. It has been suggested that an improved environment will assist in reducing the incidence of crime.
Equal Opportunities Implications (to include Welsh Language issues)
23. There are no equal opportunity implications.
24. 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
25. The report is in accordance with the Policy Framework and Budget.
Consultation (including Ward Member Consultation)
26. 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