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Agenda Item No. 4

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Economy and Environment): 15th July 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 to 31st May 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 to 31st May 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 2014/15 revenue and capital monitoring is noted.

Reason for the Recommendation

1.         That Members are aware of the position with regard to the 2014/15 revenue and capital monitoring relevant to this Scrutiny Committee. 

Background

2.         Council on the 5th March 2014 (minute nos 884 and 883 respectively) approved the Revenue and Capital Budgets for 2014/15.  Reports monitoring expenditure are brought to this Committee on a regular basis.

Relevant Issues and Options

Revenue

 

3.         The Revenue Budget and projected outturn for 2014/15 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

 

8,536

8,536

0

Waste Management

 

9,376

9,376

0

Grounds Maintenance

 

3,528

3,528

0

Support

 

0

0

0

Building Services

 

0

0

0

Economic Development

 

832

832

0

Leisure

 

3,515

3,515

0

Planning and Transportation

 

5,306

5,306

0

Total Economy & Environment

31,093

31,093

 

 0

 

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

5.         Highways Maintenance & Engineering Design & Procurement - There is currently an adverse variance of £40k to the profiled budget. The original budget for 2014/15 takes account of the £165k savings required for this financial year. There are also still financial savings from previous years that have not yet been made and are putting pressure on the budget. The savings still to be made are for street lighting (£150k) and car parking (£340k). Reports will shortly be brought before Cabinet to set out the proposals for both of these savings. These savings are consequently unlikely to be achieved in full and the service will be required to take action to avoid an overspend.

6.         Waste Management -There is currently an adverse variance of £83k. There are 2 main reasons for the current overspend. The bulk of the savings in waste management for this financial year were related to the more efficient use of the vehicle fleet. Due to a slight delay in the implementation of the vehicle telemetry software, some of the proposed savings have slipped by a few months. However, this is now in place and reports will shortly be run on vehicle utility so that decisions can be taken on vehicles that are under-utilised to enable savings to be made. There has also been an increase in the cost of the treatment of dry co-mingled recycling due to a new contract being in place from April 2014. There is the potential for savings later in the financial year in relation to the cost of disposal of residual waste, which will aid the current budgetary position. The original budget for 2014/15 takes account of the £1,020k savings required for this financial year. The budget will be monitored closely to ensure that savings that are not achieved are found elsewhere within the budget

7.         Grounds Maintenance - There is currently an adverse variance of £41k to the profiled budget. Again, there has been some slippage in the savings relating to transport, however, every effort will be made to ensure that savings are made elsewhere in the department. The original budget for 2014/15 takes account of the £40k savings required for this financial year. The budget will be monitored closely to ensure these efficiency savings are achieved.

8.         Economic Development - There is currently a favourable variance of £22k to the profiled budget.  The budget is currently expected to out-turn on target.

9.         Leisure - There is currently a favourable variance of £2k to the profiled budget.  The budget is currently expected to out-turn on target.

10.      Planning and Transportation - There is currently a favourable variance of £90k to the profiled budget. This is due mainly to a higher than anticipated level of fee income during the early part of the year. However, as it is still early in the financial year and income can be volatile it is still projected to out-turn on target.

Capital

11.      Appendix 2 details financial progress on the Capital Programme as at 31st May 2014. 

12.      S106 Schemes - Emergency powers have been used to approve the inclusion of s106 monies into the programme as follows:

          Various Play Areas                                                        £39,000

          Windsor Rd Jct with Pill Street Penarth                           £10,000

          Dochdwy Rd Bus Shelter                                               £15,000

          Hensol/Pendoylan Traffic Calming                                  £22,000

13.      Barry Island Regeneration - Cabinet will be requested to vire £64k from the Visible Services Asset Renewal budget to the Barry Island Regeneration scheme.  Welsh Government provided £3.3m of grant funding for the Barry Island Regeneration scheme in 2013/14.  Work on site was delayed due to severe weather conditions through the winter months and will continue into 2014/15.  WG could only provide the grant for 2013/14 expenditure.  It was agreed with WG that other works, already identified to be funded from Council monies, could be claimed against the grant thus releasing Council funding in 2014/15 which could be used for the completion of the works.  Work was brought forward from the 2014/15 Visible Services Asset Renewal Programme and undertaken during 2013/14, which was claimed against the grant in 2013/14.  This releases funding in 2014/15 to be transferred to the Barry Island Regeneration scheme to allow for completion of works.  The virement has been reflected in Appendix 2.

14.      Cowbridge Bowls Club - A report to Cabinet dated 9th September 2013, minute number C2016, agreed that the playing surface at the Cowbridge Bowling Club be replaced subject to a financial contribution of £12k being received from the Cowbridge Bowling Club in part payment for the works.  This payment has been received and the balance of the works will be funded from the Visible Services Asset Renewal budget.  This contribution is included in Appendix 2 as part of the Parks and Grounds Asset Renewal budget.

15.      The monitoring report shows actual expenditure for the month of May 2014 and is matched by a similar figure in the profile to date column, thereby showing no variances.  Profiled expenditure has been requested from Project Managers and will be updated in the next report

16.      Members should be aware that Appendix 2 does not include requests for unspent committed expenditure to be slipped from 2013/14 into 2014/15.  A request for this slippage will be included in the Closing Down report presented to a future Cabinet meeting.

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.

Resource Implications (Financial and Employment)

18.      As detailed in the body of the report.

Sustainability and Climate Change Implications

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

Legal Implications (to Include Human Rights Implications)

20.      There are no legal implications.

Crime and Disorder Implications

21.      There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

22.      There are no equal opportunity implications.

Corporate/Service Objectives

23.      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

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

Consultation (including Ward Member Consultation)

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

Background Papers

None

Contact Officer

Carolyn Michael (Operational Manager - Accountancy ) (01446 709778)

Officers Consulted

Director of Development Services

Director of Visible Services and Housing

Responsible Officer:

Rob Thomas

Miles Punter

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