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Agenda Item No. 4

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Economy and Environment): 14th January 2014

 

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 2013 to 30th November 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 2013 to 30th November 2013 regarding those revenue and capital budgets, which form this Committee’s remit.

Recommendation

It is recommended that the position with regard to the 2013/14 revenue and capital monitoring is noted.

Reason for the Recommendation

That Members are aware of the position with regard to the 2013/14 revenue and capital monitoring relevant to this Scrutiny Committee. 

 

Background

2.         Cabinet on the 18th November 2013 (minute nos. C2076 and C2074 respectively) approved the amended Revenue and Capital Budgets for 2013/14.  Reports monitoring expenditure are brought to this Committee on a regular basis.

3.         As part of the Final Revenue Budget Proposals for 2013/14, Council on 6th March 2013 approved the savings targets for 2013/14 onwards.  These savings will represent the minimum targets expected to be met by services.  Approved 2013/14 savings required for services within this Committee's remit are £625k for Environment and Visible Services, £5k for Planning and Transportation and £70k for Economic Development.

Relevant Issues and Options

Revenue

 

4.         The Revenue Budget and projected outturn for 2013/14 are shown in the table below.  It is currently projected that services under this Committee will outturn within target at year end.

Economy & Environment 

Revenue Budget

 

Probable Outturn

Variance

(+ ) Favourable

(-) Adverse

 

£000

£000

£000

Highways Maintenance & Engineering

 

8,446

8,446

0

Waste Management

 

9,843

9,843

0

Grounds Maintenance

 

3,477

3,477

0

Support

 

104

104

0

Building Services

 

0

0

0

Economic Development

 

950

950

0

Leisure

 

4,085

4,085

0

Planning and Transportation

 

5,329

5,329

0

Total Economy & Environment

 

 

                       32,234

 

 

                    32,234

 

 

 

5.         A graph and table setting out the variance between profiled budget and actual expenditure to date is attached at Appendix 1.

6.         Highways Maintenance & Engineering Design & Procurement - There is currently a £80k adverse variance to the profiled budget.  This is mainly due to a reduction in the income being achieved by the Engineering section due to a reduction in the number of capital schemes requiring Engineering advice/design. It is anticipated that schemes will become available later in the financial year which should increase the level of income. It is therefore projected that the overall budget will outturn on target 

7.         Waste Management - There is currently a £56k favourable variance to the profiled budget. The saving is mainly linked to vacant posts within the service and a  reduction in the amount of waste being sent to landfill. Due to uncertainties around the increased future cost of the recycling treatment service, it is currently projected that the Waste Management budget will outturn on target.

8.         Grounds Maintenance - There currently stands a £27k adverse variance to the profiled budget. The main reason for this current overspend is Transport costs, however, many vehicles have now been off-hired, therefore, a balanced budget is currently anticipated.

9.         Support – There is currently a nil variance to the profiled budget.

10.      Economic Development - It is currently projected that this budget will outturn within target.

11.      Leisure - It is currently projected that this budget will outturn within target.

12.      Planning and Transportation - There is currently a favourable variance of £3k to the profiled budget.  This is due to income being slightly in advance of the profiled estimate.  With such a small variance it is currently projected that the budget will out-turn on target.

Capital

13.      Appendix 2 details financial progress on the Capital Programme as at 30th November 2013.

14.      Flood Risk Management - It has been requested that the following Flood Risk Management Schemes are delayed until 2014/15 and are included in the 2014/15 Capital Programme.

          Flood Risk Management at Boverton - £250k to provide match funding if Welsh Government approve the proposed scheme,

          Flood Risk Management at Coldbrook - £138k to provide match funding required for increased construction costs.

15.      Gileston to Old Mill - It has been requested that the Capital Programme is increased by £2,750k, with funding being approved by WG for the construction phase of the scheme. Work is due to start on site in January 2014 and completion is expected in November 2014.

16.      Regional Transport Consortia (SEWTA) - Additional funding has been offered to the Council for the following schemes.  To ensure that this funding is spent within the financial year 2013/14, approval for inclusion in the Capital Programme has been received using the Emergency Powers procedure;

          £3k for Development of Road Safety Capital Schemes,

          £14k for Bus Stop upgrades on A48,

          £13k for an additional Greenlinks Transport Minibus,

          £24k for an additional Greenlinks Transport Minibus and accessible car.

          In addition to the above, further funding of £35.5k has been awarded towards the cost of the Railway Walk Cycle Scheme, to cover additional costs due to slight amendments in design such as different surfacing material which is more aesthetically suited to the environment. This results in the total award for 2013/14 being £220k. It has been requested that this additional sum be accepted by the Vale of Glamorgan Council from the SEWTA Grant fund and is included in the 2013/2014 Capital Programme.

17.      Rights of Way Improvement Plan (ROWIP) - Following the approval of £28.5k funding from Natural Resources Wales, it has been requested that this allocation is reflected within the Capital Programme for 2013/14. The funding covers the following projects:

          £8k to fund preparation of new definitive map, analysis and reporting of CAMS data,

          £3.5k to fund creation and improvement of Public Right of Way links,

          £12.5k has been allocated to fund the review and support of annual clearance arrangements,

          £2.5k to improve path through public wildlife trust reserve by installing drainage,

          £2k to establish focus group to develop and deliver improvements for low use groups,

          £2k to Establish Barry Heart Walk.

18.      Wales Coast Path Development Programme - It has been requested that the Capital Programme is increased by £22.5k in 2013/14 and 2014/15 for grant funding allocated by Natural Resources Wales. The increase in funding will be as follows; £8.5k in 2013-14 and a further £14k in 2014-15 to fund the following schemes; Wales Coast Path Programme Boverton Mill to Summerhouse Point and Wales Coast Path Programme St Bride's Major to Dunraven Park.

19.      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.

Variance between Actual Spend to date and Profiled Spend

20.      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 scheme meets this criteria.

21.      Vehicles Renewal Fund - Expenditure is slightly behind profile due to second hand vehicles being purchased in year and some items of expenditure being delayed pending the outcome of decisions regarding future revenue services.

22.      Appendix 3 provides non-financial information on capital construction schemes with a budget of over £100k.   Where a budget shown in Appendix 2 is more than £100k but is made up of several schemes that individually are less than £100k, 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.      There are no direct implications arising from this report.

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.

Corporate/Service Objectives

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.

Background Papers

None

 

Contact Officer

Carolyn Michael (Senior Group Accountant) (01446 709778)

 

Officers Consulted

Director of Development Services

Director of Visible Services and Housing

 

Responsible Officer:

Rob Thomas

Miles Punter

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