Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Economy and Environment): 13th March 2012
Report from the Director of Environmental and Economic Regeneration.
Revenue and Capital Monitoring for the period 1st April 2011 to 31st January 2012
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 January 2012 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. 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 £24k 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 £116k 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 is expected to outturn with a £100k favourable variance to offset the projected overspend within the Planning Section.
6. Visible Services Grounds Maintenance - There is currently a £5k 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 £142k 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 £530,000 to the profiled budget. The anticipated year end overspend on the service is £170k, which relates to an increase in Leisure Centres running costs and a reduction in anticipated income, this will be funded from savings in the Visible Services budget.
9. An overspend of £500k has previously been reported to Committee which related to the delay in implementing the Leisure Centre Partnership, this was to be funded from Policy. To regularise the position Cabinet will be requested to agree to the virement of £500k to this service from Policy. The amended revenue budget as shown at Appendix 1 takes account of this virement.
10. Planning and Transportation - There is currently an adverse variance of £60k to the profiled budget. There is an anticipated year end overspend of £100k due to a fall in planning fees as a result of a delay in submission of some major schemes. This overspend will be met from savings identified within Visible Services.
Capital Programme 2011/2012
11. Appendix 2 details financial progress on the Capital Programme as at 31st January 2012.
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. Road Safety Capital Grant 2011/12 - WG has approved the additional grant of £12K for line and signage works at Lower Green Farm along the A48. The Chief Executive has exercised his emergency powers to include this grant in the Capital Programme in order that we are able to spend the money before the 31st March deadline. Appendix 2 has been updated to reflect this budget in the current year's capital programme.
14. Safe Routes in Communities 2011/12 - extensive works are being undertaken along Colcot Road and Port Road, Barry, to establish a footpath/cycle route from Barry Comprehensive School eastwards along Port Road. This work is being carried out by our in-house Highways Contracting Unit and is 100% funded from the Welsh Government's Transport Grant. The scope of the works has recently been increased with additional grant allocations such that the works are now to be extended to the top of the Barry Docks Link Road. Works are now proceeding well and a full spend of the £708K grant allocation is expected to be achieved by the end of March. The additional funding offer has been accepted and Chief Executive emergency powers have been exercised in order to include the funding in the capital programme. Appendix 2 has been updated to reflect the full approval.
15. Barry Waterfront Park & Ride - a recent bid for further grant funding for this scheme has now been approved by WG. It became necessary for an additional £83K to be requested due to unforeseen rock excavation costs, new drainage runs due to poor ground conditions and extension of time and demobilisation/remobilisation costs due to Network Rail delays. The additional funding offer has been accepted and Chief Executive emergency powers have been exercised in order to include the funding in the capital programme. Appendix 2 has been updated to reflect the full approval.
Variance between Actual Spend to date and Profiled Spend
16. 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 criterion this month.
17. Vehicle Replacement Programme - as has been reported previously, orders have now been placed for replacement fleet vehicles but the Fleet Manager is still awaiting delivery before payments can be made. Lengthy build-times on some vehicles have caused delays in delivery. He is still reporting that the majority of this budget should be spent though an element may need to be slipped into 2012/13 if vehicles are not received by year-end.
18. 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)
19. As detailed in the body of the report
Legal Implications (to Include Human Rights Implications)
Crime and Disorder Implications
21. It has been suggested that an improved environment will assist in reducing the incidence of crime.
Equal Opportunities Implications (to include Welsh Language issues)
22. There are no equal opportunity implications
23. 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
24. The report is in accordance with the Policy Framework and Budget
Consultation (including Ward Member Consultation)
25. 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