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Agenda Item No

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Economy and Environment): 1st  September 2015

 

Report of the Director of Environment and Housing Services

 

Revenue and Capital Monitoring for the period 1st April to 31st July 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 July 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

  1. Council on the 4th March 2015 (minute nos. 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

  1. 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

8,523

-100

Waste Management

8,361

8,261

+100

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

6,525

6,525

0

Total Economy & Environment

30,118

30,118

                       0

       
  1. A graph and table setting out the variance between profiled budget and actual expenditure to date is attached at Appendix 1.
  2. Highways Maintenance & Engineering - There is currently a £40k 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 charging report has now been approved by Cabinet and the roll out of part night street lighting commenced in July 2015, therefore, the full year saving will not be achieved in both these areas. However, there are a number of small favourable variances across Highways which can be used to offset the shortfall in these savings, resulting in a projected overspend at year end of around £100k. The original budget for 2015/16 takes account of the £619k savings required for this financial year.
  3. Waste Management - There is currently a favourable variance of £1k 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 however been offset by a slight delay in the implementation of some of the other savings. 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, it is projected that the outturn at year end could be an underspend of around £100k. The original budget for 2015/16 takes account of the £1.264m savings required for this financial year.
  4. Grounds Maintenance - There is currently a £19k adverse variance against the profiled budget, mainly due to a slight overspend to date on vehicle budgets. Discussions 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 savings are achieved by year end.
  5. Economic Development - There is currently a favourable variance of £19k to the profiled budget. Although expenditure on the Employment Training Service (ETS) is currently below budget, income levels are set to reduce as the programme winds down, so any underspend will be required to offset the drop in income levels. It is therefore anticipated that this service will outturn on target.
  6. Leisure - There is currently a favourable variance of £48k to profiled budget. There are reduced costs due to staff vacancies in the Leisure & Tourism and Countryside Divisions. In addition, filming fees at Cosmeston Medieval Village have exceeded the budgeted figure. Officers are still working on proposals for the introduction of car parking charges at Country Parks and whilst the aim is to report this matter to Cabinet in the near future, at this later stage in the year, the targeted savings for the Division will now not be achievable. Any underspends will now need to be used to offset any income shortfall. At this stage the overall budget is anticipated to outturn on target.
  7. Planning and Transportation - There is currently a favourable variance of £49k to profiled budget.  This is due mostly to a higher than budgeted level of planning fee income. The budget now includes the Additional Learning Needs and Post-16 transport budgets of £1.355m, previously held in Learning & Skills and transferred following approved by Cabinet on 27th July 2015. At this early stage of the year it is anticipated that this service will outturn on target.
  8. Attached at Appendix 2 of the report is a statement showing the progress made to date against the 2015/16 savings targets. Whilst the saving relating to Prosiect Gwyrdd is anticipated to exceed the target, there are other savings in the service which will not be achieved and will therefore offset this favourable position. In addition, there are also savings from previous year which have yet to be achieved in full, however, progress will be made this year to implement these schemes.

Capital

  1. Appendix 3 details financial progress on the Capital Programme as at 31st July 2015.
  2. Visible Services Asset Renewal - The Visible Asset Renewal budget was agreed by Cabinet on 23rd February 2015, minute number C2650. Recommendation 3 stated "THAT the Managing Director or Head of Finance, in consultation with the Cabinet Member responsible for Finance, be given delegated authority to make additions, deletions or transfers to or from the 2015/16 to 2019/20 Asset Renewal budgets as appropriate". This delegated authority has been used to allocate the Visible Services Asset Renewal budget as follows: -

- Coastal Infrastructure £50k

 - Public Conveniences Refurbishment £50k

 - Highway Structures £150k

 - Drainage £150k

 - Traffic Management Measures £100k

 - Visible Services Highway Improvements £100k

 - Parks and Grounds Maintenance £200k.

  1. Tackling Poverty - Emergency Powers have been used to approve the inclusion of £10k in the Capital Programme, for works to Victoria Gardens within the Welsh Governments Vibrant and Viable Places (Tackling Poverty) programme. This will add value to the programme of environmental improvements to Victoria Gardens. This scheme will be funded from S106 monies.
  2. Court Road Bus Shelter - Emergency Powers have been used to approve the inclusion of £22k in the Capital Programme for Court Road Bus Shelter. This scheme will be funded from S106 monies.
  3. Maximising the Employment Potential of the Glamorgan Heritage Coast - Emergency Powers have been used to approve the inclusion of £98k for the above scheme in the Capital Programme. This scheme is 100% grant funded from the Big Lottery Fund.
  4. Innovation Quarter Capital Receipts - Emergency powers have been used to approve the inclusion of £396k for the above scheme in the Capital Programme. This scheme will be funded by capital receipts. Welsh Government are now being paid their share of the capital receipt the Council has previously received from land disposals. The land was originally purchased with Welsh Government grant.
  5. Barry Regeneration Partnership - As part of this scheme, £13k has been allocated for feasibility and preliminary design works for High Street/Broad Street traffic management. It will be requested that £13k is vired to the High Street/Broad Street Traffic Management Scheme.
  6. Barry Regeneration Partnership - £12k of this budget is allocated for the former public convenience on the Eastern Promenade. The cost of the works has increased due to unforeseen asbestos within the building. The total cost of the works is now £20k and an £8k increase in the budget will be requested, which will be funded by a contribution from revenue.
  7. Appendix 4 provides non-financial information on capital construction schemes.
  8. 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)

  1. As detailed in the body of the report.

Sustainability and Climate Change Implications

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

Legal Implications (to Include Human Rights Implications)

  1. There are no legal implications.

Crime and Disorder Implications

  1. There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

  1. There are no equal opportunity implications.

Corporate/Service Objectives

  1. 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

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

Consultation (including Ward Member Consultation)

  1. 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 Environment and Housing Services

Responsible Officer:

Miles Punter

 

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