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Agenda Item No 6

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Economy and Environment): 10th March 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 2014 to 31st January 2015

 

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 2014 to 31st January 2015 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

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 no 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 £258k to the amended profiled budget. As previously highlighted, 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, covering the projected overspend identified in Building Services as detailed in paragraph 9.

6.         Waste Management - There is currently a favourable variance of £72k to the amended profiled budget.  The main reason for the current underspend is the interim contract with Viridor for waste disposal which has resulted in large budget savings. It is currently projected that this budget will out-turn on target as the availability of the Viridor plant during the interim contract stage can vary, as the plant can close for testing/maintenance, with waste having to be diverted to landfill, which would add an additional cost burden to this council.

7.         Grounds Maintenance - There is currently a favourable variance of £8k to the amended profiled budget. There is 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 out-turn 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 out-turn with a deficit of £100k at year end. As previously reported, the main reason for this is the pay award that was recently agreed for all staff. Building Cleaning & Security is a labour intensive service and therefore the pay award had a large impact. 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.

10.      Economic Development - There is currently a favourable variance of £105k to the amended profiled budget. This is mainly due to an underspend on profiled repairs budgets. However, major repairs at a cost of around £132k are due to be undertaken on our workshop stock to introduce emergency lighting, as well as handrails on flat roofs, in line with health & safety advice.  Improving the condition of the stock will attract business investment.  It is hoped that these works can be completed by the end of this financial year and contained within the existing Economic Development budget, but, should it exceed the available budget, any excess will be funded from other underspends within the Development Services Directorate.

11.      Leisure - There is currently a favourable variance of £95k to profiled budget. This is due mainly to an underspend on the central energy recharge to Leisure Centres, as well as vacant posts within the Countryside division being held, pending  the restructure within the Division. There are however planned repairs works within the Countryside Division that are yet to be undertaken which will reduce the underspend.  Any residual underspend will be used towards any overspend in the Economic Development Division or contribute towards the capital regeneration schemes thus resulting in a balanced budget at year end.

12.      Planning & Transportation - There is currently a favourable variance of £238k to the profiled budget.  This is mainly due to a higher than anticipated level of planning and section 106 fee income received during the year. 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 capital 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 31st January 2015. 

14.      A4226 Five Mile Lane Improvements Ground Investigation - It has been confirmed that Welsh Government will reimburse the Vale of Glamorgan Council the direct costs associated with the appointment of CC Ground Investigations Ltd, up to £48,485 excluding VAT, based on the corrected tender sum of £40,404 plus 20% for any additional works that may be required during the investigation works.  It has been requested that £48,485 be added to the 2014/15 Capital Programme for this scheme.

15.      Ewenny Road Bridge - Network Rail is project managing this scheme which will not be complete until June 2015 when the Council will be required to make a contribution.  It has therefore been requested that £975k match funding is carried forward to the 2015/16 Capital Programme.

16.      Gileston to Old Mill - There is projected expenditure against this scheme in 2015/16 for landscaping, fees, fencing, provision for a road safety audit and retention.  It has  therefore been requested that £195k is carried forward into the 2015/16 Capital programme.

17.      Visible Services Highway Improvements Resurfacing - £120k relating to this scheme is to fund resurfacing part of the Miskin interchange, however Welsh Government require a 12 week lead into preparing legal notices to close the slip roads and it has therefore been requested that £120k is carried forward in to the 2015/16 Capital Programme.

18.      Ashpath Footpath Improvements - Highways are unable to complete this scheme this financial year due to the current work programme.  It has therefore been requested to carry forward £8k of this budget into the 2015/16 Capital Programme.

19.      Cogan Hall Farm - Due to the current work programme, feasibility design has not yet taken place, this is now anticipated to take place in early March.  It has therefore been requested that £10k is carried forward into the 2015/16 Capital Programme.

20.      Byrd Crescent Community Centre - This community centre is being used as a polling station during the May elections, this has meant that works have been delayed. It has therefore been requested to carry forward £10k into the 2015/16 Capital Programme.

21.      Italian Shelter Penarth - The Council are going out to tender on this scheme at the end of February and the scheme will be contractually committed by the end of this financial year.  It has therefore been requested to carry forward £25k into the 2015/16 Capital Programme.

22.      St Pauls Church - Following a recent marketing exercise, the Council is currently considering a proposal to re-use this building by a community group, however further work is required by this group to establish whether the proposal is viable and will be the subject of a separate report to Cabinet in due course.   The future of this property will not be determined within this financial year therefore it has been requested that £245k is carried forward into the 2015/16 Capital Programme.

23.      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.

24.      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)

25.      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

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

Legal Implications (to Include Human Rights Implications)

27.      There are no legal implications.

Crime and Disorder Implications

28.      There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

29.      There are no equal opportunity implications.

Corporate/Service Objectives

30.      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

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

Consultation (including Ward Member Consultation)

32.      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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