Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Economy and Environment) 7th February 2012
Report from the Director of Environmental and Economic Regeneration
Revenue and Capital Monitoring for the period 1st April 2011 to 31st December 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 December 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 £115k 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 £90k 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 out-turns 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 out-turns on target.
7. Visible Services Support - There is currently a favourable variance of £127k 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 £276,000 to the profiled budget. The anticipated year end overspend on the service has increased by £250k to £670k, due to the delay in the implementation of the Leisure Centre Partnership. The increase of £250k will be met from Policy savings.
9. Planning and Transportation - There is currently an adverse variance of £2k 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 31st December 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. S106 Penarth Heights Highway Works - during September 2010, the Authority received the sum of £80,000 under a section 106 legal agreement towards highway works at the Penarth Heights site. Highway works were defined as "feasibility, design and construction works which may include but shall not be limited to upgrading the road junction to ease traffic congestion at the junction of Cogan Hill and Terra Nova Way and upgrading the road junction of Windsor Road and Plassey Street and subsequently to provide maintenance of the said works for up to 20 years”. There will be a further Highway Contribution of £180,000, due prior to occupation of the 50th dwelling on the site, bringing the total highway contribution to £260,000. The sum of £8,000 was spent during 2010/11 and a further £10,000 this year (on traffic reviews, junction modelling, initial designs and a topographical survey). Until such time as the next tranche of funding (as outlined above) is received, the construction phase cannot proceed this financial year. As such, it has been requested that the remaining 2011/12 budget of £62,000 be slipped into 2012/13.
13. 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. There are no schemes meeting this criterion this month.
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