Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Economy and Environment): 4th September 2012
Joint Report of the Director of Development Services and the Director of Visible Services and Housing
Revenue and Capital Monitoring for the period 1st April 2012 to 31st July 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 2012 to 31st July 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 2012/13 revenue and capital monitoring.
Reason for the Recommendation
1. That Members are aware of the position with regard to the 2012/13 revenue and capital monitoring relevant to this Scrutiny Committee.
2. Council on the 7th March 2012 (minute nos. 951 and 950 respectively) approved the Revenue and Capital Budgets for 2012/13. Reports monitoring expenditure are brought to this Committee on a regular basis.
Relevant Issues and Options
3. The Revenue Budget and projected outturn for 2012/2013 are shown in Appendix 1.
4. Highways Maintenance & Engineering Design & Procurement - There is currently a £32k favourable variance to the profiled budget. This is mainly due to a slight underspend on premises costs. The budget for 2012/13 takes account of the efficiency savings required. The budget will be monitored closely to ensure these savings are met and it is expected that the budget will outturn on target.
5. Waste Management - There is currently a £43k 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 increase in popularity therefore saving on costly landfill disposal. The budget for 2012/13 takes account of the efficiency savings required. The budget is currently expected to outturn on target
6. Grounds Maintenance - There is currently a £43k adverse variance to the profiled budget. This is mainly due to an overspend on new machinery as new legislation has come in to force for Hand Arm Vibration. The budget for 2012/13 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. Support – There is currently a favourable variance of £38k to the profiled budget. This budget is to be held for any cost pressures within Visible Services that may arise throughout the financial year. Currently this budget is also projected to outturn on target.
8. Building Services - It is currently anticipated that this area will breakeven at year end.
9. Economic Development and Leisure - There is currently a £496k adverse variance to the profiled budget. The leisure partnership agreement was finalised on 1st August and the Dyffryn project is progressing and will transfer in the near future. There is also pressure on Lifelong Learning Education and Training Services as a result of the receipts from the Government Work Programme not achieving the target to date and this is currently under review in order to achieve outturn within budget by year end.
10. Planning and Transportation - There is currently a £184k favourable variance to the profiled budget. This is predominately due to income from planning fees for major schemes now being in advance of profiled estimate. The timing of their receipt will impact on the budget variance. It is anticipated that the division will outturn on budget.
11. Appendix 2 details financial progress on the Capital Programme as at 31st July 2012.
12. Members should note that Appendix 2 does now include requests for unspent committed expenditure slipped from 2011/12 into 2012/13, as approved via the Council's Urgency Decision Procedure.
13. For all schemes where it is evident that the full year's budget will not be spent during the year, the relevant officers are required to provide an explanation for the shortfall and this shall be taken to the earliest available Cabinet.
14. Appendix 3 provides non-financial information on capital construction 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 smaller schemes that individually are less than £100,000, the scheme is not included in Appendix 3.
15. Coldbrook Flooding scheme - Further to a report presented to Cabinet on 23rd July 2012, the Council has now received an additional £683k grant offer from WG. Match funding from the Council for this level of grant is required at £120k and it has been agreed that this can be funded from the Visible Services Maintenance Fund. It has now been requested that the Capital Programme be increased in order to reflect this additional funding.
16. Penarth Leisure Centre Central Heating Plant - Salix Finance have offered the Council a loan to fund the upgrade of the central heating plant at the centre, to the sum of £146k with a view to increasing energy efficiency and reducing carbon emissions. The loan is repayable by the client department over an agreed payback period and should be funded by savings in energy costs. It has been requested that Cabinet approve the inclusion of this budget in the Capital Programme
17. Rural Local Regeneration Business Plan 2 - Members should be aware that the budget included in Appendix 2 reflects the costs to the Council itself. It does not reflect those costs incurred by third parties.
Resource Implications (Financial and Employment)
18. As detailed in the body of the report.
Sustainability and Climate Change Implications
19. As detailed in the body of the report.
Legal Implications (to Include Human Rights Implications)
20. There are no legal implications.
Crime and Disorder Implications
21. There are no crime and disorder implications.
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 Development Services
Director of Visible Services and Housing