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Agenda Item No. 4

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Economy and Environment): 11th February 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 31st December 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 31st December 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

0

 

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 £116k 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 £110k 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 £30k favourable variance to the profiled budget. The main reason for this current underspend is a reduction in levels of overtime.  The Grounds Maintenance department need to replace a large amount of machinery before the end of the financial year and therefore, a balanced budget is currently anticipated.

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

10.         Economic Development - There is currently a favourable variance of £5k to the profiled budget.  It is currently projected that this budget will outturn within target.

11.         Leisure - There is currently a £16k favourable variance to the profiled budget.  This is mainly due to current staff vacancies within the Countryside Service. There has been, however, a need to repair the thatched roof at Cosmeston Medieval Village and it is expected that this will mean that any under spend within the service will be used to fund this additional expenditure, resulting in a balanced budget at the end of the year.

12.         Planning and Transportation - There is currently a favourable variance of £5k to the profiled budget.  Although there has been higher than anticipated income to date, there is anticipated expenditure within the service which is expected to result in a balanced budget at year end.

Capital

13.         Appendix 2 details financial progress on the Capital Programme as at 31st December 2013.

14.         Vehicle Renewal Fund - It has been requested that £279k is carried forward for the purchase of three new vehicles for Cleansing Services, which will now be purchased in 2014/15.

15.         Regional Transport Consortia (Sewta) - Further funding of £41.6k has been awarded towards the cost of the Railway Walk Cycle Scheme. This funding is due to additional costs being incurred to cover a change of materials for surfacing of the footway/cycleway, along with additional consultation which led to the change in surfacing, further design works and additional legal costs to cover the village green application. This brings the award for 2013/14 to a total of £261.6k. It has been requested that this additional sum be accepted by the Council from Sewta’s Regional Transport Consortia Grant (RTCG) fund and it is included in the 2013/2014 Capital Programme.

16.         Llantwit Major Crossings - An increase in the Capital Programme of £5k has been requested for Section 106 funded works at Llantwit Major Crossings.  The work will entail a series of dropped kerbs throughout Llantwit Major to enable easy accessible pedestrian movements for all groups.

17.         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.

18.         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)

19.         As detailed in the body of the report.

Sustainability and Climate Change Implications

20.         There are no direct implications arising from this report.

Legal Implications (to Include Human Rights Implications)

21.         There are no legal implications.

Crime and Disorder Implications

22.         There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

23.         There are no equal opportunity implications.

Corporate/Service Objectives

24.         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

25.         The report is in accordance with the Policy Framework and Budget.

Consultation (including Ward Member Consultation)

26.         The appropriate Chief Officer has been consulted. This report does not require Ward Member consultation.

Background Papers

None

 

Contact Officer

Carolyn Michael (Principal 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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