Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Economy and Environment): 15th January 2013
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 30th November 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 30th November 2012 regarding those revenue and capital budgets, which form this Committee’s remit.
2. To request a change to the Capital Programme.
It is recommended that:
1. The position with regard to the 2012/13 revenue and capital monitoring is noted.
2. The proposed amendment to reduce the Alexandra Gardens Community Centre re-build capital scheme to £200K and carry forward £227K to 2013/14, is endorsed and referred to Cabinet and Council for approval.
Reasons for the Recommendations
1. That Scrutiny Members are aware of the position with regard to the 2012/13 revenue and capital monitoring.
2. That Scrutiny, Cabinet and Council approve the proposed amendment to the Capital Programme.
3. Cabinet on 19th November 2012 (min no c1910 and c1911) approved the amended capital and revenue budgets for 2012/13. Reports monitoring expenditure are brought to this committee on a regular basis.
Relevant Issues and Options
4. The Revenue Budget and projected outturn for 2012/2013 are shown in Appendix 1.
5. Highways Maintenance & Engineering Design & Procurement - There is currently a £40k adverse variance to the revised profiled budget. This is mainly due to a slight overspend on agency costs. The revised 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.
6. Waste Management - There is currently a £48k favourable variance to the revised profiled budget. The current underspend is mainly due to a continuing decrease in the level of waste taken to landfill, therefore saving on costly disposal. The revised budget for 2012/13 takes account of the efficiency savings required. The budget is currently expected to outturn on target
7. Grounds Maintenance - There is currently a £33k adverse variance to the revised 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 revised 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.
8. Support – There is currently a favourable variance of £114k to the revised 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.
9. Building Services - It is currently anticipated that this area will breakeven at year end.
10. Economic Development - There is currently a £21k adverse variance to the revised profiled budget. This variance is primarily attributable to the Employment and Training Services, as a result of the Government Work Programme receipts having not reached the profiled income targets to date. This service is currently under review to enable a return to within budget in 2013/14. It is anticipated that the outturn at year end will be an adverse variance of £36k.
11. Leisure - There is currently a £160k adverse variance to the revised profiled budget, of which £122k relates to overspending within the leisure centres as previously reported. It is anticipated that the outturn at year end will be an adverse variance of £168k. Part of this variance will be offset by savings from within Planning and Transportation.
12. Planning and Transportation - There is currently a £186k favourable variance to revised profiled budget. This is predominately due to income from planning fees for major schemes now being in advance of the profiled estimate. Recent progress in seeking to adopt highways at Rhoose Point has resulted in the receipt of fees which would otherwise not have been received It is anticipated that the year end outturn will be a favourable variance of £59k, which will be used to fund overspend elsewhere in the division.
13. Appendix 2 details financial progress on the Capital Programme as at 30th November 2012.
14. 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.
15. Alexandra Gardens Community Centre Re-build - This part-Welsh Government (WG) grant scheme has been delayed due to problems with the initial design, meaning that a second tendering exercise had to be carried out. This process has now been completed and a preferred contractor has been appointed. Costs are projected well within the existing budget. The procurement delays however have pushed the planned construction period back several months. WG have been informed of this situation and are considering assenting to splitting their initial grant offer over two financial years, to match the profiled spend. In order to reflect the need to complete the scheme in May 2013 it has been requested that slippage of £227k into 2013/14 be approved by Council.
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 £500k and show a variance of 20% or more between actual spend and the profile. The following schemes meets this criteria:-
17. Coldbrook Flooding - Due to issues with the tender process on this contract, it has been agreed that a re-tender exercise will be carried out. Clearly this will delay the progress of the scheme and WG have been approached to consent to a re-profile of the grant offer in order to allow the scheme to continue into 2013/14. Members will be advised of the outcome of these discussions.
18. Five Mile Lane Safety Improvements - Expenditure on this scheme is slightly behind profile and this reflects the fact that the scheme to improve safety conditions at Sycamore Cross has been amended from a roundabout solution to a traffic signalling arrangement, thereby reducing costs. Because of this reason, there will be an under spend on this budget, to be quantified in January. WG will be informed of the outturn at that point.
19. Highway Resurfacing - Local Government Borrowing Initiative - This budget, to improve the condition of the Vale's highway network, is running ahead of the original planned profile as the contractor, Tarmac, is completing works faster than anticipated, with the good winter weather conditions to the end of November. A full spend is expected by the end of January 2013.
20. Vehicle Replacement Programme - As previously reported, delivery of vehicles on order are far later than anticipated. The majority of vehicles are however still anticipated by year-end.
21. Leisure Centre Refurbishment - The Council has approved a budget of £3.143m as a payment to Parkwood Leisure to manage various refurbishment works at the Vale's leisure centres as part of the new Leisure Management Partnership arrangement. The spend has fallen behind the profile and as such a new profile has been requested from Parkwood and Members will be advised should this require monies being slipped into 2013/14.
22. 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.
Resource Implications (Financial and Employment)
23. As detailed in the body of the report.
Sustainability and Climate Change Implications
24. One of the purposes of the Sustainable Development Working Group is to review the sustainability of major capital schemes. Wherever possible, the Council strives to reduce carbon emissions and improve energy efficiency and positively encourages waste reduction initiatives.
Legal Implications (to Include Human Rights Implications)
25. There are no legal implications.
Crime and Disorder Implications
26. There are no crime and disorder implications.
Equal Opportunities Implications (to include Welsh Language issues)
27. There are no equal opportunity implications.
28. 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
29. The report is in accordance with the Policy Framework and Budget.
Consultation (including Ward Member Consultation)
30. 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