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Agenda Item No. 5

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Economy and Environment): 14th July 2015

 

Report of the Director of Visible Services and Housing

 

Revenue and Capital Monitoring for the period 1st April to 31st May 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 to 31st May 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 2015/16 revenue and capital monitoring is noted.

Reason for the Recommendation

1.         That Members are aware of the position with regard to the 2015/16 revenue and capital monitoring relevant to this Scrutiny Committee. 

Background

2.         Council on the 4th March 2015 (minute no 941 and 940 respectively) approved the Revenue and Capital Budgets for 2015/16.  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 2015/16 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

 

8,423

8,423

0

Waste Management

 

8,361

8,361

0

Grounds Maintenance

 

3,503

3,503

0

Building Services

 

0

0

0

Economic Development

 

825

825

0

Leisure

 

2,481

2,481

0

Planning and Transportation

 

5,170

5,170

0

Total Economy & Environment

28,763

28,763

 

                       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 - There is currently a £11k adverse variance against the profiled budget. This is due to the delayed implementation of car parking charges and street lighting part night switch off. A car parking study is currently being undertaken and will be reported to Cabinet in the near future. The roll out of part night lighting is due to commence in July 2015, therefore, the full year saving may not be made in both these areas. The original budget for 2015/16 takes account of the £619k savings required for this financial year. The budget will be monitored closely to ensure these savings are achieved.  As it is early in the financial year it is anticipated that the service will outturn within budget by year end.

6.         Waste Management - There is currently a favourable variance of £9k to the profiled budget. The main reason for this is the early implementation of the Prosiect Gwyrdd contract which is providing considerable savings for the waste disposal budget. This has been offset by a slight delay in the implementation of some of the savings.  The original budget for 2015/16 takes account of the £1.264m savings required for this financial year. The budget will be monitored closely to ensure these efficiency savings are achieved.  While the Prosiect Gwyrdd site is currently operational, it is running under test conditions and the Council cannot rely on the eventual contractual terms and conditions and the facility could close at any point during the testing period.  In view of this and as it is early in the financial year, it is considered that the service will outturn within budget by year end.

7.         Grounds Maintenance - There is currently a £14k adverse variance against the profiled budget, mainly due to a slight overspend to date on vehicle budgets. Meetings are ongoing to ascertain if there are further vehicles that are under-utilised with a view to meeting the savings targets set. The original budget for 2015/16 takes account of the £130k efficiency 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 £10k to profiled budget. The major variance relates to lower than budgeted rates bills for the Vale Enterprise Centre and Business Support Centre as occupancy levels are currently high in each. Should the tenants vacate during the year the Council, as Landlord, would once again become liable for the payments. At this early stage in the year, it is anticipated that this service will outturn on target.

9.         Leisure - There is currently a favourable variance of £34k to profiled budget. There are reduced employee costs due to staff vacancies (awaiting recruitment) in the Leisure & Tourism and Countryside Divisions. In addition, filming fees at Cosmeston Medieval Village are currently greater than the budgeted figure. As it is still early in the financial year the budget is projected to outturn on target.

10.      Planning and Transportation - There is currently a favourable variance of £21k to profiled budget. This is due mostly to a higher than budgeted level of planning fee income.  At this stage however it is anticipated that this service will outturn on target.

Capital

11.      Appendix 2 details financial progress on the Capital Programme as at 31st May 2015. 

12.      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.

13.      Gileston Road and St. Athan Crossroads - Emergency Powers have been used to approve the inclusion of £36k in the Capital Programme for the works to Gileston and St Athan Crossroads.  This scheme will be funded from S106 monies.

14.      Barry Community Watersports Facilities - Emergency Powers have been used to approve the inclusion of £106k in the Capital Programme for the Barry Community Facilities Scheme.  This scheme will be funded from S106 monies.

15.      Marketing and Disposal of the Innovation Quarter Southern Development Site, Barry Waterfront/ Nell's Point, Barry Island - Emergency Powers have been used to approve the inclusion of £50k for each of these schemes listed above.  These schemes will be funded from Capital Receipts.

16.      Culverhouse Cross to St Athan Bus Priority Scheme - A grant award of £76k has been approved by Welsh Government for the continuation of the Culverhouse Cross to St Athan Bus Priority Scheme.  It is therefore requested that the 2015/16 Capital Programme is increased by £76k

17.      The monitoring report shows actual expenditure for the month of May 2015 and is matched by a similar figure in the profile to date column, thereby showing no variances however where received, profiled expenditure has been updated.

18.      Members should be aware that Appendix 2 includes requests for unspent committed expenditure that has been slipped from 2014/15 into 2015/16.  This request has been approved by Emergency Powers.

19.      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)

20.      As detailed in the body of the report.

Sustainability and Climate Change Implications

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

Legal Implications (to Include Human Rights Implications)

22.      There are no legal implications.

Crime and Disorder Implications

23.      There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

24.      There are no equal opportunity implications.

Corporate/Service Objectives

25.      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

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

Consultation (including Ward Member Consultation)

27.      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 Visible Services and Housing

 

Responsible Officer:

Miles Punter

 

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