Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Economy and Environment): 12th February 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 31st December 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 December 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 increase the 2012/13 budget for the Coastal Access Improvement to £92.8k (funded from a Countryside Commission for Wales grant of £11.5k and a revenue contribution of £1.25k from existing Development Services budgets) is endorsed and referred to Cabinet for approval.
3. The proposed amendment to increase the Gibbonsdown Childrens Centre budget by £10k (funded from a transfer from the Community Centre Asset Renewal capital budget) is endorsed and referred to Cabinet for approval.
4. The proposed amendment to include a budget of £16k in the 2012/13 Dyffryn Gardens Phase 1 Capital Programme (funded from a transfer from the Alexandra Gardens Community Centre re-build capital budget) is endorsed and referred to Cabinet for approval.
5. The proposed amendment to increase the existing Leisure Centre Refurbishment budget to £3.290m (additional £147k funded from a repayable Salix loan), is endorsed and referred to Cabinet for approval.
6. The proposed amendment to reduce the Five Mile Lane capital budget to £1.123m, is endorsed and referred to Cabinet 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.
2/6. 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 £44k favourable variance to the revised profiled budget. This is mainly due to increased levels of income being achieved by the Highways Section. 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 £3k 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 £40k 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 £128k 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 £37k 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 £167k adverse variance to the revised profiled budget, primarily due to overspending in 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 £231k 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. 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 31st December 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. Coldbrook Flooding - As previously reported, this flood management scheme has been delayed due to re-design and problems with obtaining consent from the Environment Agency to undertake works on Main River. Evidently there will be further delays in this complicated scheme as a re-tendering exercise is to be carried out. As the issues with this part Welsh Government (WG), part Welsh European Funding Office (WEFO) grant funded scheme are so varied, the Director of Visible Services and Housing has been asked to prepare a separate report on this issue in order to inform Members of the progress to date and the way forward with this project.
16. Gilestone to Old Mill - The Welsh Government have recently offered the Authority the sum of £250k in order to progress studies into the proposed highway improvement works between Gileston and Old Mill. As the money has to be fully spent by the end of March 2013, it was vital to mobilise the scheme as soon as possible and it was necessary to request Managing Director Emergency Powers in order to approve the automatic inclusion of the offer in the current year's Capital Programme. This is reflected in Appendix 2.
17. Coastal Access Improvement Programme - This scheme, partly funded by the Countryside Commission for Wales (CCW), involves improvements to various coastal pathways around the Vale. As a result of a mid-year request for additional funding to extend this year's works programme, we have accepted additional grant funding of £11,550 from CCW. As they require Council match funding on their grant offer, the Council is obliged to commit an additional £1,250 funding. It has been agreed that this will be funded from a revenue contribution from within the existing Development Services budget. Committee is therefore requested to seek Cabinet approval to increase this budget to £92,800.
18. Gibbonsdown Children's Centre - Within the capital allocation for Community Centres Asset Renewal (£50k), the sum of £10k has been earmarked for works on kitchens/ toilets at this centre. In light of the major refurbishment works currently taking place at the centre, it is proposed that this £10k budget be transferred to the Gibbonsdown Children's Centre approval in order to reflect the full costs of the scheme. For Members' information, it was agreed to increase the current budget of this major refurbishment project by £17,205, as agreed by delegated authority on November 9th, 2012. This was approved in order to fully fund the full anticipated costs of the scheme, some £371k. This funding has been transferred from the existing Barry Regeneration Partnership Project Development Fund capital budget and is reflected in Appendix 2.
19. Dyffryn Gardens Phase 1 - There have been some final payments made to complete this Heritage Lottery Fund (HLF) grant funded scheme during this financial year. However, full and final grant funding from HLF was claimed last year, leaving a commitment of some £16k this year which is currently unfunded. The Director of Development Services has proposed that the funding for this £16k, which includes the final element of retention held on the glasshouse contract (completed in 2011/12), can be covered from a projected under spend within the Alexandra Gardens Community Centre re-build budget. The re-designed specification for this centre resulted in contract tender sums being well within the existing budget so the £16k to cover Dyffryn Gardens can easily be accommodated. Committee is therefore requested to seek Cabinet approval for the inclusion of a £16k budget within the current Capital Programme for Dyffryn Phase 1, and reduce the Alexandra Gardens Community Centre re-build budget accordingly.
20. Leisure Centre Refurbishment - Although a revised expenditure profile has still not been received from Parkwood Leisure, works are proceeding within the various leisure buildings. Works are split between £1m improvement works and £2.143m maintenance works. The majority of the improvement works are now completed and the maintenance works are now being investigated. As at mid January the value of works completed was £804k. An additional sum of £147k has been accepted from Salix Finance in order to replace the central heating plant at Penarth Leisure Centre, in order to improve efficiency and reduce carbon emissions. Some enabling works for this installation will need to be funded from the existing refurbishment budget. The loan is repayable to Salix Finance, from revenue, over a 6 year period. In order to reflect the additional Salix funding it is requested that this budget be increased by £147k.
Variance between Actual Spend to date and Profiled Spend
21. 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:-
22. Five Mile Lane Safety Improvements - Expenditure on this scheme continues to be behind profile due to amendments in the agreed design for the proposed works to improve safety conditions at Sycamore Cross. The projected outturn costs on this scheme are now projected to be £1.123m and WG have been informed of this under spend. It is therefore necessary to request Cabinet to approve a reduction in this budget of £288k.
23. 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)
24. As detailed in the body of the report.
Sustainability and Climate Change Implications
25. 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)
26. There are no legal implications.
Crime and Disorder Implications
27. There are no crime and disorder implications.
Equal Opportunities Implications (to include Welsh Language issues)
28. There are no equal opportunity implications.
29. 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
30. The report is in accordance with the Policy Framework and Budget.
Consultation (including Ward Member Consultation)
31. 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