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Agenda Item No 5

The Vale of Glamorgan Council

 

Scrutiny Committee (Economy and Environment): 2nd February 2016

 

Report of the Director of Environment and Housing Services

 

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

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.

 

Original Revenue Budget £'000

Amended Revenue Budget £'000

Profiled Budget to Dec £'000

Expenditure to Dec

 £'000

Probable Outturn

£'000

Variance (+) Favourable (-) Adverse £'000

Highways & Engineering

8,624

8,760

6,566

6,520

8,760

0

Waste Management

8,361

8,333

6,334

6,257

8,333

0

Leisure

4,562

4,488

3,590

3,557

4,488

0

Building Services

0

0

0

0

0

0

Transportation

 5,086

5,178

3,732

3,651

5,178

0

Regeneration

  2,092

2,562

  1,992

  1,900

2,562

0

Development Management

  1,238

1,063

  838

  649

1,063

0

Total Economy & Environment

29,963

30,384

23,052

22,534

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 £46k favourable variance against the amended profiled budget. The main reason is due to 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 £77k 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 currently has a £43k adverse variance against the profiled budget, mainly due to an overspend on employee costs as a result of the recent senior management restructure. Some costs such as transport costs will decrease over the winter months. For Leisure, there is currently a favourable variance of £76k against profiled budget, due mainly to reduced cost of admin cover for the service. Overall, it is anticipated that the budget will outturn on target.
  5. Transportation - The Transportation Unit, covers Road Safety, School Crossing Patrols and Passenger Transport, mainly in the form of buses for Education and Supported bus routes. There is currently a favourable variance of £81k against the profiled budget. Staffing costs within the division are £37k lower than budgeted to date. Payments for the supported bus service are also lower than budgeted. 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 budget.
  6. Regeneration - There is currently a favourable variance of £92k to the profiled budget. Occupancy levels at workshops remain high and costs are still below budget on the Employment Training Service (ETS) which is nearing the end of its programme term. In addition, costs within the Countryside division are below budget as filming income is higher than anticipated and both staffing and transport costs are lower than expected. There are however, several necessary refurbishment works planned within the Countryside division which are yet to be completed so it is expected that premises costs will increase during the last quarter. It is therefore anticipated that this service will outturn on target.
  7. Development Management - There is currently a favourable variance of £189k to profiled budget, mostly due to the planning application fee income being higher than budgeted. No further major planning applications are anticipated before April and temporary additional staffing resources have been employed in order to maintain service levels so these factors will bring the net underspend within the division down by year-end. Income is also high on Building Control, although a proportion of any net underspend will be transferred to the Building Control Trading account for future re-investment into the service.
  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 some of these schemes.

Capital

  1. Appendix 3 details financial progress on the Capital Programme as at 31st December 2015.
  2. Boverton Flooding - Welsh Government's Natural Resources Minister, Carl Sargeant, has announced funding has been allocated for the next financial year in the Draft Budget 2016/17 to complete important flood defence schemes at Boverton in the Vale of Glamorgan and Porthcawl. It will be requested that £130k of this budget is carried forward into the 2016/17 Capital Programme.
  3. Cross Common Bridge - The determination of outlined planning for adjoining development land is likely to be delayed until January/February 2016.  The detailed application for the proposed road realignment has been submitted for planning committee and is subject to the same timeframe and ecological constraints. Subject to planning and finalising heads of terms, it is anticipated that the procurement can take place before the end of the financial year, with the commencement of the construction phase early in 2016/17. It will therefore be requested that £500k is carried forward into the 2016/17 Capital Programme.
  4. Llanmaes Flood Management Scheme - Approval is currently required from Welsh Government to proceed further with the implementation of this scheme. Design details are currently being finalised, however, it will be necessary to request a carry forward of budget of £972k into the 2016/17 Capital Programme.
  5. Gileston to Oldmill - This scheme is projecting an underspend of £700k.  This is due to the risk allocation being managed well hence not requiring the full allocated funding.  Funding will not be lost, simply that it will not be claimed from Welsh Government as the scheme is now effectively complete under budget.
  6. Ashpath Footpath Improvements - The drainage works are complete but the land issues are still progressing. It will therefore be requested to carry forward £86k into the 2016/17 Capital Programme.
  7. Jenner Park and Colcot Pitches - Jenner Park 3 G pitch is complete and in operation. Colcot pitches development requires a business case to be put forward before constructions can commence. It will therefore be requested to carry forward £337k into the 2016/17 Capital Programme.
  8. St Paul's Church - The project board have concluded that the preferred bidder has not successfully submitted a viable business plan; therefore the board is considering options for the property. It will therefore be requested to carry forward £233k into the 2016/17 Capital Programme.
  9. Barry Regeneration Partnership Scheme - At Cabinet on the 13th July 2015, £600k was added to the Capital Programme for the Barry Regeneration Partnership Scheme. £361k of this sum has been allocated using Delegated Authority which was detailed in the Initial Capital Programme Proposals 2016/17 report. Delegated Authority has been used to allocate a further £167k of this budget to the following schemes:

- Cadoxton Moors Public Open Space £15k

- Gladstone Park £54k

- Tackling Poverty (George Street Play Area) £8k

- Porthkerry Country Park: Interpretation Programme £30k

- Hunt Place Play Area Refurbishment £60k

Further assessment is being undertaken to allocate the remaining balance of £72k to priority schemes. The £600k was allocated over financial years 2015/16 and 2016/17, it will therefore been requested to re-profile these schemes as set out in the following table :-

Scheme

2015/16 £000

2016/17 £000

Cadoxton Moors Public Open Space

7

8

Gladstone Park

5

49

Tackling Poverty (George Street Play Area)

8

0

Porthkerry Country Park: Interpretation Programme

0

30

Hunt Place Play Area Refurbishment

0

60

     
  1. Cogan Hall Farm - Dinas Powys to Cosmeston Cycleway Link - There is a hold on this scheme until next financial year due to the volume of work and it will therefore be requested that the S106 budget of £150k is carried forward into the 2016/17 Capital Programme.
  2. Lighting Scheme for Zig Zag Path - Only the design and tendering work for the lighting contract on the zig zag path will be undertaken this financial year due to the lead time for the manufacturing of the lighting bollards. The contractor will not be on site until financial year 2016/17. It will therefore be requested to carry forward £70k into the 2016/17 Capital Programme.
  3. Tackling Poverty - Within the Tackling Poverty budget there is £10k allocated for monitoring and evaluation of the scheme. Welsh Government have not yet advised of the format this will take and it is not anticipated that this will be received prior to year end. It will therefore be requested to carry forward £10k into the 2016/17 Capital Programme.
  4. High Street Broad Street Traffic Management - This scheme will not achieve full spend during 2015/16 due to the need for further consultation prior to the traffic regulation orders being prepared. It will therefore be requested to carry forward £268k into the 2016/17 Capital Programme.
  5. Marketing & Disposal of the Innovation Quarter - The Marketing is complete and negotiations are now on-going with the promoter. It will therefore be requested to carry forward £19k into the 2016/17 Capital Programme in order to complete the disposal.
  6. Appendix 4 provides non-financial information on capital construction schemes.
  7. 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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