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Agenda Item No 7

The Vale of Glamorgan Council

 

Scrutiny Committee (Economy and Environment): 8th March 2016

 

Report of the Director of Environment and Housing Services

 

Revenue and Capital Monitoring for the period 1st April 2015 to 31st January 2016

 

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 2015 to 31st January 2016 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.

 

Original Revenue Budget £'000

Amended Revenue Budget £'000

Profiled Budget to Jan £'000

Expenditure to Jan

 £'000

Probable Outturn

£'000

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

Highways & Engineering

8,624

8,760

7,295

7,228

8,760

0

Waste Management

8,361

8,333

6,997

6,930

8,333

0

Leisure

4,562

4,488

3,933

3,845

4,488

0

Building Services

0

0

0

0

0

0

Transportation

 5,086

5,178

4,228

4,096

5,178

0

Regeneration

  2,092

2,562

  2,290

  2,209

2,562

0

Development Management

  1,238

1,063

  967

  754

1,063

0

Total Economy & Environment

29,963

30,384

25,710

25,062

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 £67k 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 £67k 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 £9k favourable variance against the profiled budget, mainly due to an underspend on transport costs which have decreased over the winter months. For Leisure, there is currently a favourable variance of £79k 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 £132k against the profiled budget. Staffing costs within the division are underspent and 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 £81k 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 £213k 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.

Capital

  1. Appendix 2 details financial progress on the Capital Programme as at 31st January 2016.
  2. Weycock Cross to Barry Comprehensive Road Resurfacing - The budget for this scheme is £40k, however it is no longer feasible for these works to be carried out this financial year due to concerns that the weather conditions are not suitable for the surface treatment works that have been programmed to take place. Emergency Powers have therefore been used to vire the £40k budget to the Sully Road Resurfacing scheme as urgent resurfacing works are necessary between Redland Road and St Cyres Comprehensive School.
  3. 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 £572,517 increase in grant from Welsh Government to deliver bus priority measures, including a bus lane and active travel infrastructure.
  4. Dinas Powys to Cardiff Corridor Bus Priority Measures - This scheme was funded by Welsh Government grant in 2014/15 however £15k of works is due to be paid in 2015/16. Discussions are being held with Welsh Government to obtain further grant funding, however if this is unsuccessful, a £15k contribution will be made to capital from the Road Safety Revenue budget. It will be requested to increase the Capital Programme by £15k.
  5. Coldbrook Flood Management - Works have required reprogramming following delays in obtaining various consents and licences and it will therefore be requested to carry forward £149k into the 2016/17 Capital Programme.
  6. Broad Street Crossing - The scale of this scheme has been reduced from a signal controlled crossing to a crossing with build outs and as a result this scheme will underspend. It will be requested to vire and carry forward £41k into the 2016/17 Capital Programme for inclusion in the Asset Renewal Highway Structures Budget. This funding will be utilised at Leckwith Bridge to address long standing safety issues.
  7. Additional Highways/Environmental Improvements - This scheme is anticipated to cost £91k due to the change in works originally programmed at Trinity Street. This will result in an underspend of £32k. It will therefore be requested to vire and carry forward £32k into the 2016/17 Capital Programme for inclusion in the Asset Renewal Highway Structures Budget. This funding will be utilised at Leckwith Bridge to address long standing safety issues.
  8. Asset Renewal - £104k of the Asset Renewal Highway Structures budget is allocated to fund works at Leckwith Bridge. The feasibility study for this scheme is in hand and will be concluded early in the new financial year. The procurement of the netting works has revealed a relatively limited sized market for such specialised work and a higher than expected estimated cost. The netting works, if implemented, would be a hindrance to any repair/strengthening works subsequently undertaken and would require removal at extra cost. In view of the probable short useful life of the netting works and their high cost, it has been proposed to defer implementation until the findings of the feasibility study are available when a more appropriate, cost effective and longer term course of action can be followed. It will therefore be requested to carry forward £90k into the 2016/17 Capital Programme.
  9. Parks and Grounds Maintenance Asset Renewal - The Playground Maintenance Software Scheme and Tree Maintenance Software scheme both have a budget of £6k in the 2015/16 Capital Programme. Investigations are still on-going into suitable systems and it will therefore be requested that £12k of this budget is carried forward into the 2016/17 Capital Programme.
  10. Vehicles Renewal Fund - An analysis of waste vehicles is currently taking place. As a result, the Council is not purchasing certain waste vehicles until this analysis is complete and the Council's requirements are known. It is therefore requested to carry forward £1,200k into the 2016/17 Capital Programme.
  11. Coastal Access Improvements - Emergency Powers have been used to approve the inclusion into the 2015/16 Capital Programme of a £33.7k increase in grant from Natural Resources Wales to carry out works to Sully Playing Fields. These works include preparation of the site including clearance of existing vegetation and provision of an edged path.
  12. Llys Steffan - Emergency Powers have been used to approve the inclusion of £12k into the 2015/16 Capital Programme to replace play equipment at Llys Steffan play area in Llantwit Major. This budget is to be funded from s106 monies.
  13. Barry Regeneration Partnership Project Fund - It has been approved by Delegated Authority that £13,327 of the unallocated original budget in 2015/16 for this scheme be allocates as follows:-
  •   £3,327 Main Street/Victoria Gardens Area Improvements - Stage 1 feasibility and concept design
  • £9,950 Main Street/Victoria Gardens Area Improvements - Stage 2 detailed design
  1. Barry Regeneration Partnership Project Fund - Of the original 2015/16 budget allocation, £57k remains uncommitted. It will therefore be requested to carry forward this amount into the 2016/17 Capital Programme in order to carry out further regenerations schemes in next financial year. Of the £57k, £9k will be allocated to part fund a Regeneration Officer Post in the Economic Development Unit to reflect their input into the capital programme.
  2. Barry Regeneration Partnership Project Fund/Tackling Poverty - At Cabinet on the 13th July 2015, £600k was added to the Capital Programme for the Barry Regeneration Partnership Scheme. The £600k was allocated over financial years 2015/16 and 2016/17. £528k of this budget has been allocated as follows: -

Scheme

2015/16 £'000

2016/17 £'000

Barry Island Western Shelter Lighting

8

42

Barry Island Interpretation Tourist Information Centre and WIFI

35

15

Victoria Gardens Area Improvements Phase 3

0

60

Improve Health and Play Opportunities George Street

(Now held under the Tackling Poverty scheme)

49

0

Cowbridge Street/Bridge Street Play Area Refurbishment

50

0

Eastern Approach Cardiff Road Gateway Improvements

0

100

BSC Improvements

10

0

Cadoxton Moors Public Open Space

7

8

Gladstone Park

5

49

Porthkerry County Park Interpretation Programme

0

30

Hunt Place Play Area Refurbishment

0

60

Total

164

364

     

Emergency Powers have been used to approve the inclusion into the 2015/16 Capital Programme of a £158k increase in grant from Welsh Government for the Tackling Poverty Vibrant and Viable Places Programme. The grant is to be used to fund the following schemes, which were originally planned to be funded from the Barry Regeneration Partnership Project Fund as detailed in the above table.

  • Victoria Gardens Improvements £60k (2016/17)
  • George Street Play Area Improvements £48k (2015/16)
  • Cowbridge/Bridge Street Play Area Improvements £50k (2015/16)

This will release £99k of Council funding in 2015/16 which can be carried forward into 2016/17 and will be added to the Tackling Poverty scheme, to be used as match funding. £50k of this funding is currently held under the Barry Regeneration heading and £49k has previously been transferred to the Tackling Poverty heading. There will also be a release of £60k of Council funding in 2016/17. It will be requested that this is vired to the Tackling Poverty scheme, again to be used as match funding. Of the original £600k allocation which was approved to be spent over the 2 financial years 2015/16 and 2016/17, £72k remains unallocated. It will also be requested to carry forward this balance into the 2016/17 Capital Programme to the Barry Regeneration Partnership Project Fund scheme.

  1. Five Mile Lane Road Improvements - There have been delays while assessing the procurement options for this scheme. As this grant is approved over several years it will be requested that £400k is carried forward into the 2016/17 Capital Programme.
  2. Marketing & Disposal of Nell's Point - External legal advice may be required before this scheme can progress and therefore it will be requested to carry forward £16k in to the 2016/17 Capital Programme.
  3. Footpath Improvements Cowbridge - There are outstanding land issues to be resolved and therefore, this scheme will not be undertaken until 2016/17. It will be requested to carry forward £64k into the 2016/17 Capital Programme.
  4. Penarth Cycle Parking Project - Works for this scheme have been delayed until April 2016 as the Highways Department are focusing resources on undertaking grant funded works that require completion prior to 31st March 2016. It will be requested to carry forward £25k into the 2016/17 Capital Programme.
  5. Pedestrian Crossing across Thompson Street/Holton Road - There is a hold on this scheme until next financial year as the Highways Department are focusing resources on undertaking grant funded works that require completion prior to 31st March 2016. It will therefore be requested that the S106 budget of £24k is carried forward into the 2016/17 Capital Programme.
  6. Maximising the employment potential of the Glamorgan Heritage Coast - The total cost of this scheme is anticipated to be £119k, however, due to additional unforeseen ground works and additional licences that had to be purchased, the Big Lottery Fund have approved that the Council can vire £6k from the Big Lottery revenue grant into the Capital scheme to fund part of this additional work. It will be requested to increase this scheme's budget by £21k, of which £6k is to be funded by a grant from The Big Lottery and £15k is to be vired from the Regeneration Fund scheme held under the Resources heading.
  7. Appendix 3 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

Director of Environment and Housing Services

 

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