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Agenda Item No. 8

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Economy and Environment): 5th January 2016

 

Report of the Director of Environment and Housing

 

Revenue and Capital Monitoring for the period 1st April to 30th  November 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 30th November 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. On 16th November 2015, Cabinet approved the Amended Revenue and Capital Budgets for 2015/16 (minute no C2975 and C2974 respectively). 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               

Amended

Revenue Budget

Probable Outturn

Variance

(+ ) Favourable

(-) Adverse

 

£000

£000

£000

Highways & Engineering

8,760

8,760

0

Waste Management

8,333

8,333

0

Leisure

4,488

4,488

0

Transportation

5,178

5,178

0

Building Services

0

0

0

Regeneration

2,562

2,562

0

Development Management

1,063

1,063

0

Total Economy & Environment

30,384

30,384

                       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 & Engineering - There is currently a £47k favourable variance against the amended profiled budget. The main reason is the vacant posts currently within the Highways Department. Due to uncertainty around costs which can result from severe weather over the winter months, it is currently projected that the budget will out-turn on target.
  3. Waste Management - There is currently a favourable variance of £31k to the profiled budget. The early implementation of the Prosiect Gwyrdd contract is providing considerable savings for the waste disposal budget, which has been offset by a slight delay in the implementation of some of the other savings within Waste Management. While the Prosiect Gwyrdd site is currently operational, it is running under test conditions and the Council cannot presently 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 budget will outturn on target.
  4. Leisure - Grounds Maintenance is currently showing a £4k favourable variance against the profiled budget, mainly due to a slight underspend to date on repair costs for buildings maintained by grounds maintenance. Due to the potential of increased costs over the winter months it is projected that the budget will outturn on target. Leisure is currently showing a favourable variance of £17k against profiled budget, due mainly to reduced costs of employees as administration cover for the service has cost less than budgeted. It is anticipated that the overall budget will outturn on target.
  5. Transportation - There is currently a favourable variance of £48k against the profiled budget. Staffing costs within the division are £35k lower than budgeted to date. The service have plans to undertake a programme of education for drivers and some small infrastructure works are required therefore it is anticipated that this service will outturn on target at year-end.
  6. Regeneration - There is currently a favourable variance of £94k to the profiled budget. As occupancy levels at the Business Service Centre (BSC) are currently high, the budget required to cover costs of carrying vacant units has not been required and is currently £10k below profiled expenditure. In addition, the improved occupancy levels have meant that rates costs across the Economic Development Division's buildings portfolio are lower than budgeted, as tenants are responsible for their own rates. Expenditure on the Employment Training Service (ETS) is currently £15k below budget, as costs of running the down-scaled operation due to nearing the end of the agreed Programme term on 31st March 2016, are greatly reduced. ETS income levels have now also started to reduce so any underspend will be required to offset the drop in income levels. There is additional Countryside division income of £44k from filming and fees so far this year and also staffing and transport costs are £19k lower than profiled to date at our country parks following the restructure within the division. There are other small favourable variances of £6k. There are however, several refurbishment works planned within the Countryside division which are yet to be carried out so expenditure will increase by the end of the year and it is therefore anticipated that this service will outturn on target.
  7. Development Management - There is currently a favourable variance of £149k to profiled budget, mostly due to the planning application fee income being higher than budgeted.  Due to the volume of applications currently being received, an additional staffing resource will be required to maintain service levels. This is presently being investigated. At this stage it is anticipated that this service will outturn on target as costs relating to the Local Development Plan (LDP) examination will be incurred between now and the end of the financial year.

Capital

  1. Appendix 2 details financial progress on the Capital Programme as at 30th November 2015.
  2. Penarth Pier Supports - Emergency Powers have been used to vire £25k from the Structures Asset Renewal budget which has not yet fully been committed to the Penarth Pier Supports Budget. The additional budget is required as the contractor and designer have identified additional works which will need to be undertaken to protect and maintain the longevity of the structure.
  3. Barry Regeneration Area Partnership - As part of this scheme, £41k has been allocated to fund the George Street Play Area resurface pedestrian links. This is a continuation of the works undertaken as part of the Tackling Poverty Scheme. To ensure continuity and to enable a more co-ordinated approach to delivery, it is requested to vire £41k from Barry Regeneration Area Partnership scheme to the Tackling Poverty Improve Health and Play Opportunities at George Street Play Area scheme.
  4. Pedestrian Cycle Improvements at Ffordd Y Mileniwm - It has now been assessed that it is not feasible to carry out this scheme and comply with the time constraints set out in the S106 agreement. It has therefore been requested to vire £69k to the Broad Street Crossing scheme where works will commence shortly. The total budget for Broad Street Crossing will therefore be £219k.
  5. Broad Street Crossing - The scheme cost is lower than expected and anticipated to cost £110k. It is requested to vire £109k of the £219k budget to the Asset Renewal Structures budget. This funding will be utilised at Leckwith Bridge to address a long standing safety issue to the general public, further feasibility studies at the bridge across B4265 at St Athan and to undertake structural assessments of existing structures in line with asset management protocols.
  6. Additional Highways/Environmental Improvements - The budget has not yet been fully committed and therefore it has been requested to vire £27k to the Asset Renewal Structures budget to enable the works stated in the above paragraph to be fully carried out.
  7. Culverhouse Cross to St Athan Bus Priority Scheme - Emergency Powers have been used to approve the inclusion into the 2015/16 Capital Programme of a £506k grant from Welsh Government to deliver bus priority measures at Barry Docks Link Road roundabout and at various bus stop locations along the corridor.
  8. Marketing and Disposal of Nell's Point - Negotiations for this scheme are taking longer than originally anticipated and it has therefore been requested to carry forward £33.5k into the 2016/17 Capital Programme.
  9. Paget Road Open Space Play Facility - Further consultation works need to be undertaken before this scheme can commence. It has been requested that £149k is carried forward into the 2016/17 Capital Programme.
  10. Feasibility Studies in Penarth Including the Esplanade - This scheme is currently at the constraints collection stage, feasibility will be commissioned in 2016/17 and it has therefore been requested to carry forward £49k into the 2016/17 Capital Programme.
  11. Additional Schemes for Community Facilities - A Delegated Authority has been approved to allocate £21.5k of the £27k budget for boiler and electrical works to Barry Island, Cwm Talwg, St Francis and St. Nicholas Community Centres.
  12. Appendix 3 provides non-financial information on capital construction schemes.
  13. 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

Responsible Officer:

Miles Punter

 

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