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Agenda Item No. 4

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Economy and Environment): 6th January 2015

 

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 30th November 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 30th November 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.         Cabinet on the 17th November 2014 (minute nos. C2533 and C2534 respectively) approved the amended 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, however, this is after the use of reserves.

 

Economy & Environment 

Amended

Revenue Budget

 

Probable Outturn

Variance

(+ ) Favourable

(-) Adverse

 

£000

£000

£000

Highways Maintenance & Engineering

 

8,837

8,737

+100

Waste Management

 

9,294

9,294

0

Grounds Maintenance

 

3,564

3,564

0

Support

 

52

52

0

Building Services

 

0

100

(100)

Economic Development

 

833

833

0

Leisure

 

3,526

3,526

0

Planning and Transportation

 

5,158

5,158

0

 

 

 

 

Total Economy & Environment

31,264

31,264

 

                       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 a favourable variance of £216k to the amended profiled budget. As previously highlighted throughout the year, this budget has had pressures due to car parking income being significantly less than budgeted, street lighting energy costs which are higher than budgeted and also pressures on the budget for routine maintenance of potholes. However, these pressures have been offset by a one off transfer of budget of £350k from central policy and also an underspend on a central energy recharge budget of £460k. Works to be undertaken during the winter period will reduce the current variance however it is projected that the budget can be managed to achieve an underspend at year end of 100k to cover the projected overspend identified in Building Services as detailed in paragraph 9.

6.         Waste Management - There is currently an adverse variance of £10k to the amended profiled budget. As previously reported there is still a slight overspend on vehicle costs, however, vehicles have now been identified via the vehicle telemetry reports that can be disposed, which will reduce costs towards the end of the financial year. It is currently projected that this budget will outturn on target, however, this could alter depending on the availability of the Viridor plant for waste disposal. During the interim contract stage the plant can close for testing/ maintenance with waste having to be diverted to landfill which will add an additional cost burden to the Council.

7.         Grounds Maintenance - There is currently an adverse variance of £28k to the amended profiled budget. There is currently an overspend on vehicle costs, however, vehicles have again been identified for disposal over the coming months. It is therefore currently projected that the budget will outturn on target.

8.         Support Services - There is currently a nil variance to the profiled budget. This budget now includes the budget for Emergency Planning which was transferred from Public Protection.

9.         Building Services - At this stage, it is currently anticipated that the Building Cleaning and Security trading unit will outturn with a deficit of £100k at year end. The main reason for this is the pay award that was recently agreed for all staff. The pay award was more favourable to lower paid staff and was considerably more than the 1% that had previously been budgeted for. The majority of the clients for Building Cleaning & Security pay an annual fixed amount, therefore, it would be unfair at this stage to increase the charges to clients. Options to address the impact on the trading position of the service are currently being reviewed.

10.      Economic Development - There is currently a favourable variance of £76k to the amended profiled budget.  This is mainly due to higher than profiled income in the Employment Training Services section, although pre-established changes in terms of the JobFit agreement mean that attachment payments are no longer received so the surplus is likely to diminish as the year goes on. The budget is currently expected to outturn on target.

11.      Leisure - There is currently a favourable variance of £36k to profiled budget. This is mainly due to vacant posts within the Countryside division being held pending the delayed restructure within the Division. There are however planned repairs works within the division that are yet to be undertaken which will reduce the underspend and therefore the budget is forecast to outturn on target.

12.      Planning & Transportation - There is currently a favourable variance of £175k to the profiled budget. This is mainly due to a higher than anticipated level of fee income received during the year, though this has slowed in recent months. Although there is an anticipated underspend within this division at year-end, it has been agreed that any such underspend will be used to fund major regeneration schemes for the Authority hence the forecast is for a balanced budget at year-end.

Capital

13.      Appendix 2 details financial progress on the Capital Programme as at 30th November 2014. 

14.      Penarth Pier Supports - Due to the likely difficult conditions that would arise from working in a coastal environment in the winter period, it is expected that design and procurement for works carried out via consultancy will take place in 2014/15 at a projected cost of £10k.  It has been requested that the £90k balance be carried forward to 2015/16 to enable works to commence early in April 2015.

15.      Penarth Heights Highways and Sustainable Transport Projects - There has been a request to amalgamate the following schemes, in order to enable a more co-ordinated approach to delivery of a number of related schemes in Penarth.  The total budget for amalgamated scheme will be £325k.

·         Cogan Hill/Plassey Street Junctions (Stages 1and 2) £30k

·         Windsor Road with Pill Street Junction Penarth £10k

·         Plassey Street/Glebe Street Zebra Crossing £30k

·         Plassey Street/High Street Zebra Crossing £20k

·         Windsor Road/Plassey Street Roundabout Junction Enhancements £100k

·         Windsor Street/Pill Street Dedicated Right Hand Turn £110k

·         Lighting Scheme for Zig Zag Path £25k

16.      Llandough Sustainable Transport Schemes - There has been a request to amalgamate the following schemes in order to enable a more co-ordinated approach to delivery of a number of related schemes in Llandough.  As part of this scheme a proposed cycleway / footway on Penylan Road would be included.  The total budget for amalgamated scheme will be £35k.  This scheme will continue into 2015/16 and will be funded from S106 contributions of £94k.

·         Dochdwy Rd Bus Shelter £15k

·         20mph Zone Llandough £20k

17.      Paget Road Open Space Play Facilities - This scheme had previously been shown in the monitoring as Skatepark at Paget Road Penarth.  The name has been amended as the skate park is just one of three play facilities within the scheme.  It has also been requested to carry forward the budget of £156k as there will be another round of consultation with users before members decide the most appropriate scheme for implementation.

18.      Hensol / Pendoylan Traffic Calming - This scheme has required additional sockets and construction works which has resulted in an increase in costs.  It has therefore been requested that the 2014/15 Capital Programme be increased by £11k, to be funded by a contribution from the S106 fund.

19.      Rights of Way Improvement Plans (ROWIP) 2014/15 - It has been requested that the grant offer from Natural Resources Wales of £31k be included in the 2014/15 Capital Programme.  This funding is to be used towards the implementation of priority ROWIP actions.

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.  Changes in future service provision may have an impact upon staffing levels and due consideration will be given to the Council's employment policies and procedures.

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 (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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