Agenda Item No 3
The Vale of Glamorgan Council
Scrutiny Committee (Economy and Environment): 12th March 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 January 2013
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 January 2013 regarding those revenue and capital budgets, which form this Committee’s remit.
2. To request changes 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 s106 Penarth Heights Highways Works capital budget to £1k (carry £61k forward to 2013/14) is endorsed and referred to Cabinet and Council for approval.
3. The proposed amendment to reduce the Coldbrook Flood Management Scheme capital budget to £150k (carry forward £692k WG/WEFO/Council funding to 2013/14, to be spent only once WG/WEFO approval is received) is endorsed and referred to Cabinet and Council for approval.
4. The proposed amendment to reduce the Vehicle Replacement Programme capital budget to £1.982m (carry forward £394k into 2013/14) is endorsed and referred to Cabinet and Council for approval.
5. The proposed amendment to reduce the Pencoedtre Park Improvements capital budget to £272k is endorsed and referred to Cabinet for approval.
6. The proposed amendment to reduce the Barry Comprehensive School Cycleway capital budget to £258k 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, as appropriate, approve the proposed amendments to the Capital Programme.
3. Cabinet on 19th November 2012 (min nos. 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 2012/13 are shown in Appendix 1.
5. Highways Maintenance & Engineering Design & Procurement - There is currently a £24k adverse variance to the revised profiled budget. This is due to an overspend on potholes as a result of recent cold weather and snow. The revised budget for 2012/13 takes account of the efficiency savings required. The budget will be monitored closely to ensure any overspend is limited, however, it is projected that the Highways section could have an adverse variance of £75k at year end due to the increase in potholing costs.
6. Waste Management - There is currently a £95k 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. Also, the Waste Management section has received levels of income higher than anticipated. The revised budget for 2012/13 takes account of the efficiency savings required. The budget is currently expected to outturn on target as there are several large purchases to be made before the end of the financial year.
7. Grounds Maintenance - There is currently a £37k 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. It is anticipated that this current adverse variance will be a similar level at the end of the financial year.
8. Support – There is currently a favourable variance of £143k 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, such as those described above. Currently, this budget is projected to outturn with a favourable variance of £125k to offset the overspend within Highways Maintenance & Engineering Design & Procurement and Grounds Maintenance.
9. Building Services - It is currently anticipated that this area will breakeven at year end.
10. Economic Development - There is currently a £26k 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 £168k 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 £199k 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 January 2013.
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. S106 Penarth Heights Highways Works - The work required at Windsor Road and Terra Nova Way will require a full consideration of options and subsequently a detailed design. Whilst initial feasibility has been undertaken, changes to the sequencing of the traffic controlled junction at Barons Court are set to take place in February/March 2013. These trials will assist in informing the options for the Windsor Road/Terra Nova Way junction. It is important that these trials take place first, prior to money being spent on initial design work that may prove fruitless. Therefore it is requested that Cabinet and Council are asked to approve slippage of £61k into 2013/14. In line with other s106 agreements the scheme will be included within the Development Services Directorate in 2013/14.
16. Coldbrook Flood Management Scheme - 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, which has still not been granted. Evidently there will now be further delays in this complicated scheme as a re-tendering exercise will need 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 shall bring a separate report on this issue to the next available Scrutiny Committee in order to inform Members of the progress to date and the way forward with this project. It is requested that Cabinet are asked to approve the reduction of the existing budget to £150k in order to reflect what can now realistically be achieved on this scheme this financial year. It is further requested to slip the remaining budget of £692k into 2013/14. Approval to spend this sum will be subject to WG and WEFO agreement, which is currently being sought.
17. Vehicle Replacement Programme - The procurement of vehicles has been behind profile for much of the year and it is now acknowledged that a full spend on the budget will not be achieved. Although more vehicles have been ordered and are expected to be received by the end of March there will be an under spend on this budget as several Building and Highways vehicles are currently out to tender and will not be received by the end of March. The Fleet Manager has estimated that a spend of approximately £1.982m can be achieved so it is necessary to request that the sum of £394k be slipped into 2013/14 to cover expenditure.
18. Pencoedtre Park Improvements - Works on this part Welsh Government grant and part s106 funded scheme has been completed below budget and it is requested that Cabinet are asked to approve the reduction in the budget to £272k to reflect the projected outturn. The completed scheme involved the establishment of a new 'Splashpad' water activity facility and refurbished play area with new lighting installations and a new toilet/changing room facility on site. The under spend results from savings achieved in procurement of the equipment for the facility.
19. Barry Comprehensive School Cycleway - This 100% WG grant funded scheme has been used to extend the current cycleway provision through the Butts area of Barry. All planned approved works have been completed below the £308k budget allocated from WG, due to cost savings, and they have been advised of the under spend on the scheme. It is requested that the budget be reduced to £258k to reflect the estimated outturn.
20. National Cycle Network Route 88 (NCN88) and Measures to Assist Cyclists near Llanmaes - The South East Wales Transportation Alliance (SEWTA) have recently approved additional grant funding of £48.5k for the existing NCN88 scheme to extend the off road cycle route around the Rhoose airport roundabout to Penmark. In addition they have allocated £93k towards 'Measures to Assist Cyclists near Llanmaes' which will be used to upgrade the Llanmaes/Llantwit road junction to incorporate a toucan crossing. Works are commencing on site in early March and are anticipated to be fully spent by the end of March. The grant offers have been accepted and approval given to include them in the Capital Programme under Managing Director emergency powers, dated 20th February 2013. Each of these allocations have been included in Appendix 1
21. 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)
22. As detailed in the body of the report.
Sustainability and Climate Change Implications
23. 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)
24. There are no legal implications.
Crime and Disorder Implications
25. There are no crime and disorder implications.
Equal Opportunities Implications (to include Welsh Language issues)
26. There are no equal opportunity implications.
27. 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
28. The report is in accordance with the Policy Framework and Budget.
Consultation (including Ward Member Consultation)
29. 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