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Agenda Item No 4

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Economy and Environment): 11th March 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 January 2014

 

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 January 2014 regarding those revenue and capital budgets, which form this Committee’s remit.

Recommendation

It is recommended that :-

1.         The position with regard to the 2013/14 revenue and capital monitoring is noted.

Reason for the Recommendation

1.         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

8,496

(50)

Waste Management

 

9,843

9,793

+50

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 £87k 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 with an adverse variance of £50k. 

7.         Waste Management - There is currently a £148k 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 and the cost of recent inclement weather, it is currently projected that the Waste Management budget will outturn with a favourable variance of £50k at year end.

8.         Grounds Maintenance - There currently stands a £22k 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 £13k to the profiled budget.  This is due in part to staff vacancies, however, as further expenditure is however anticipated within the services, 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 January 2014.  The following adjustments have been reflected in Appendix 2.

14.      Vehicle Replacement Programme - A request has been made to carry forward £369k of funding to the 2014/15 Capital Programme.  This will fund 2 new Highways Gritters at £174k and 3 highways 7.5T tippers at a cost of £195k in 2014/15. The underspend in 2013/14 is due to a number of vehicles being no longer required, as a result of the extension of some vehicle lives and also as a result of savings that have been achieved on the procurement of new vehicles.

15.      Skatepark at Paget Road - It has been requested that £31,965 is carried forward to cover the costs of this scheme that are expected to fall into the 2014/15 Capital Programme.

16.      Barry Regeneration Partnership Project Development Fund - It has been requested that £120k of funding previously allocated to Maslin Park Play Area Improvements is carried forward. Following agreement from Welsh Government, the costs of this scheme now fall within the grant funded Barry Island Regeneration scheme in 2013/14. Budget will be carried forward into the 2014/15 Capital Programme to meet the costs of the Barry Island Regeneration Scheme that are expected to fall outside the grant period. 

17.      Barry Regeneration Partnership Project Development Fund - Slippage of £5k has been requested from the Routes into Enterprise scheme to enable this funding to be used in conjunction with the Waterloo Foundation Bursary Scheme as reported to Cabinet on 27th January 2014, (minute number C2182).

18.      Alexandra Gardens Community Centre - Slippage of £7,500 has been requested to cover retention costs due to be paid in 2014/15. In addition, it is also requested that an underspend of £42,000 is carried forward to be used to improve facilities in the surrounding area.

19.      S106 Various Play Area Upgrades - It has been requested that £74,100 is carried forward into the 2014/15 Capital Programme to cover the costs of this scheme that are expected to fall in 2014/15.

20.      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.

21.      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)

22.      As detailed in the body of the report.

Sustainability and Climate Change Implications

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

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.

Corporate/Service Objectives

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.

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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