SCRUTINY COMMITTEE (CORPORATE RESOURCES)

 

 

MINUTES of a meeting held on 11th December, 2007.

 

Present:  Councillor H.J.W. James (Chairman);  Mrs. C.V.L. Clay (Vice-Chairman); Councillors Mrs. S.M. Bagstaff, Mrs. J.E. Charles, Miss J. Cole, M.R. Harvey, N.P. Hodges, T.H. Jarvie, Mrs. M. Kelly Owen, C.L. Osborne, B.I. Shaw, K.R. Stockdale and M.R. Wilson.

   

 

643     APOLOGIES FOR ABSENCE -

 

These were received from Councillors Ms. L. Burnett, F.T. Johnson, Mrs. A. Moore and A.G. Powell.

 

644     MINUTES -

 

RESOLVED - T H A T the minutes of the meeting held on 6th November, 2007 be approved as a correct record.

 

  

645     DECLARATIONS OF INTEREST -

 

There were no declarations received.

 

 

646     REFERENCES FROM SCRUTINY COMMITTEES -

 

RECOMMENDED - T H A T the following references be noted (the detail of each further considered in the agenda), and referred to Cabinet:

 

·                    References from Scrutiny Committee (Community Wellbeing and Safety): 26th November, 2007 -

 

566     INITIAL REVENUE BUDGET PROPOSALS 2008/09 (DFICTP) -

 

Committee was advised that the budget estimates were to be presented to all Scrutiny Committees for consultation with the Scrutiny Committee (Corporate Resources) being the lead Scrutiny Committee and that all responses would be required to be made no later than 14th December, 2007.  The Cabinet Budget Working Group would also be holding a series of meetings in December 2007 and January 2008 with the relevant Cabinet Members and officers to consider the budget proposals, with the intention that recommendations are submitted to Cabinet no later than 6th February 2007 and onward to Council by 13th February, 2008.

 

Appendix 1 to the report before the Committee set out the necessary transfers to the original estimate for 2007/08 which were detailed as follows:

 

·                    Asset Rents - the reason for the movement was due to the revisions to the Accounting Code of Practice that required deferred government grant income be released to revenue services to offset the asset rent which had been already charged;

·                    Recharges etc - this was movement in charges between Internal Council services;

·                    Budget Transfers - budget adjustments to reflect transfers of functions and responsibilities between services which related primarily to transfers within Social Services that had taken place but had a nil net value. 

 

The report also highlighted the additional pressure that had arisen from the increased price of care home fees which could not have been predicted at the beginning of the year and it was stated was unrealistic to expect Social Services to cover the costs within their existing budget at the current time.  It had therefore been proposed that an additional allocation of £1.11m. be given to Social Services in 2007/08 to cover the costs as well as the costs of  arbitration. 

 

The report further highlighted that Social Services would need to identify savings to cover additional costs in future years and that it was essential that early measures were taken to bring down spending in view of the predicted poor settlement and current financial position of the Council.  In light of discussions with individual Directors of the Council, it had been proposed to set an additional savings target for 2007/08 as detailed below:

 

 

£,000

Environmental and Economic Regeneration

650

Legal, Public Protection and Housing

200

Finance, ICT and Property

200

Chief Executive

  60

 

The Social Services Department had not been given an additional savings target but had been advised to bring a revised Budget Action Plan to Cabinet setting out how they intended to bring their expenditure down to their revised target.  A moratorium on the filling of all vacant posts in the Directorate had been put in place, with the exclusion of staff in residential homes and in other exceptional circumstances.  A similar moratorium had also been put in place for the Learning and Development Directorate. 

 

Appendix 2 to the report outlined the summary of the overall base budget for 2008/09 which had been arrived at by adjusting the 2007/08 budget for items such as inflation and unavoidable growth.  The cost pressures identified by Social Services were attached as Appendix 3 to the report.  In respect of the cost pressures Members queried whether any were in priority order and were advised that no priority had been given, they were all cost pressures to the Service.  In respect of outstanding reviews the Interim Director advised that the Children’s Services Section had undertaken a number of reviews of cases in that area and were currently working with an underspend on the service albeit at any point in time new cases could considerably affect the budget. 

 

In respect of Community Care and Health further work on reviews of cases would be required in order to try to manage the service area in a similar way to Children’s Services.  He further advised Committee that in respect of budget management and allocation of resources, the process of allocation of budgets to managers of the right levels was on-going.  Committee Members noted that the arbitration case would have a detrimental effect on the budget for the forthcoming year and the Cabinet Member, Councillor S.C. Egan being permitted to speak, raised a number of initiatives he was considering. 

 

Firstly, a meeting had been requested with Operational Managers to consider the budget information and to break down the costs further in order to ascertain which particular area was overspending on a regular basis.  He confirmed that a number of care homes within the Vale were happy to continue working with the Vale and that he had requested that the cost for Community Care and Health be drilled down and costed out separately from the arbitration issues.  It was important that the Council identified all changes that had been made since April 2007 against the budget and whether the Social Services Department was performing as expected.  Regular meetings had also taken place with the Local Health Board and Cardiff and Vale NHS Trust in order to consider the way in which each organisation addressed care packages for people and that they were completed on a consistent basis. 

 

Members queried the impact of reviewing packages and the Interim Director advised that the majority were going down, but significant numbers were remaining static and some going up.  He confirmed that further urgent work would be required in order to complete all assessments and reviews.  There were also a number of performance and capacity issues and as such progress was at varying levels.  The Cabinet Member also referred to block booking a number of beds in care homes and Members queried how it would affect choice for clients.  The Interim Director confirmed that block booking would not necessarily impact on choice. 

 

In view of the settlement received from the Welsh Assembly Government and the pressures on the Social Services Department the Committee

 

RECOMMENDED -

 

 (1)      T H A T the report be noted.

 

 (2)      T H A T the minutes of the meeting be forwarded to the Scrutiny Committee (Corporate Resources) for consideration.  

 

Reasons for recommendations

 

(1&2) To inform Committee.

 

 

567     INITIAL CAPITAL PROGRAMME PROPOSALS 2008/09 (DFICTP) -

 

The purpose of the report was to advise the Scrutiny Committee of the progress on the 2007/08 Capital Programme for the period 31st August, 2007 and to submit for consultation initial Capital Proposals for 2008/09.  Appendix A to the report detailed the progress on the Capital Programme as at 31st October, 2007 which carried the Directorates of Legal, Public Protection and Housing Services and Social Services.  Under the Directorate of Legal, Public Protection and Housing Services the report highlighted that under Emergency Powers the Chief Executive Officer had approved the purchase of a Vale Community Alarm System to be initially funded from the Computer fund on an internal lease basis.  It was therefore requested that the 2008 Capital Programme be increased by £203,000 in order to initially fund the procurement of the system. 

 

In respect of the Directorate of Social Services, Cabinet had, on 4th July, 2007 approved the funding of £200,000 for the works required at the Woodlands Day Centre to complete a transfer facility from the Day Centre to Holm View Leisure Centre and it was requested that the 2008 Capital Programme be increased in order to enable the works to be undertaken.  The Welsh Assembly Government had also approved a bid for capital funding of £34,402 in respect of setting up an outdoor play area at Camau Cyntaf Nursery, Kidzone and the provision of a storage area for Flying Start offices at Skomer Road.  The works were to be completed by 31st March, 2008 and Cabinet would be requested to approve an increase to the 2007/08 Capital Programme of £34,500.

 

In respect of EMI Beds Committee was advised that Social Housing Grant funding had been approved in relation to Extra Care Housing but due to the fact that existing capital programme funding would not be spent in the current financial year, it was requested that the budget for EMI Beds of £500,000 be slipped into 2008/09.  For Adult Respite Care the current year’s allocation of £500,000 had been intended for the purchase of property in order to provide day care facilities for adults with learning disabilities.  Problems had however arisen in the attempt to progress the sale of the property and as a result slippage was requested while the service considered the most appropriate way forward to meet the respite care need.

 

The Welsh Assembly Government had announced on 14th November, 2007 the provisional 2008/09 General Capital Funding being £8,198,000 but the final settlement was expected to be announced during January 2008.  The Major Repairs Allowance had however not yet been announced for 2008/09 by the Welsh Assembly Government albeit the Cabinet would be advised as soon as the announcement was made.  In addition to the funding from the Welsh Assembly Government the Council had agreed to finance part of the Capital Programme from its own resources e.g. capital receipts and reserves which amounted to £13,806.

 

Appendix B to the report detailed the indicative 2008/09 Community Wellbeing and Safety Capital Programme and an indicative assets renewal budget of £150,000 had been included for Social Services which constituted an un-earmarked general provision. 

 

Appendix C to the report listed the Capital Bids that had been received but were unsuccessful and had therefore not been put forward for inclusion in the 2008/09 Programme.  The report noted that due to the shortage of capital funding the only addition to the indicative Capital Programme for 2008/09 was the Reallocation of the funds for the Road to Dunraven Bay whereby further costs were required on an already committed scheme.  Members were advised that the likely start date for Dunraven Road would be any time from 1st April 2007.  Members considered they were unable to make any relevant comments on the report before them and as such

 

RECOMMENDED - T H A T the report and the suggestions be supported and referred to Scrutiny Committee Corporate Resources.

 

Reason for recommendation

 

In order that the views of the Scrutiny Committee can be known.

 

 

568     INITIAL HOUSING REVENUE ACCOUNT BUDGET PROPOSALS 2008/09 AND REVISED BUDGET 2007/08 (DLPPHS & DFICTP) -

 

The Initial Housing Revenue Account Budget proposals were before the Committee for consideration together with the revised budget for 2007/08.  The table below compared the original budget with the proposed revised estimate.

 

 

2007/08

Original

Budget

2007/08

Proposed Revised Estimate

Variance

(+)Favourable

(-)Adverse

 

£’000

£’000

£’000

Housing Revenue Account

(421)

(868)

447

 

The net decrease of £447,000 in the budget had been due to several reasons.  The budget had been adjusted to reflect more accurately the capital financing charges (£250,000), a decrease in security measures at Harbour View (Penarth Heights) would save (£53,000), and the amount payable to the Welsh Assembly Government in respect of Housing Subsidy was likely to reduce by (£117,000).  General efficiency savings and vacancies accounted for the remaining balance of the reductions.

 

Cabinet had approved the budget strategy and timetable for 2008/09 on 25th July, 2007 as part of the 2007/08 - 2010/11 Medium Term Financial Plan (Minute No. C3160).  The Budget Strategy had outlined that in order to establish a baseline, services should prepare revenue budgets for the following year based on the cost of providing the current level of services and approved policy decisions and the cost of price increases and pay awards would be included.  In respect of the Housing Revenue Account due to the nature of it being ringfenced any growth would have to be funded from the balance and no cost pressures had been formally identified.

 

The proposed 2008/09 budget was set out at Appendix A to the report. It was noted that the charges for rent and other services provided by the Housing Division were reviewed on an annual basis and as such would be subject to a future report once the information had been received from the Welsh Assembly Government.  The report however further highlighted that a consultant was currently undertaking a Rent Review which was due to be finalised by December 2007.  The change in the budget was therefore itemised as follows:

 

2007/08

Original

Budget

Inflation/

Pay Award

Committee

Growth /

Savings

Estimated

Rent

Increase

2008/2009

Proposed

Budget

£’000

£’000

£’000

£’000

£’000

(421)

102

346

(540)

(513)

 

The committed growth of £346,000 had been due to the increases in subsidy repayable to WAG, a reduction in rent income due to right to buy sales reducing the stock levels and an increase in the cost of security at the hostel and general budget adjustments, the estimated capital financial recharge, a reduction in central recharges and a reduction in the security provision at Penarth Heights.  The Committee considered that in light of the fact that the true settlement had not been received from the Welsh Assembly Government it was difficult to make any comments on the proposals and

 

RECOMMENDED -

 

(1)       T H A T the report be noted and referred to the Scrutiny Committee Corporate Resources for consideration.

 

(2)       T H A T this Committee receive a report on the increases suggested for rent and other services, as and when available, from the Welsh Assembly Government.

 

Reasons for recommendations

 

(1)               Having regard to the contents of the report and the final settlement figures awaited from the Welsh Assembly Government.

 

(2)       In order to meet the statutory deadline to notify tenants of the new charges as required by statute.

 

 

·                    Reference from Scrutiny Committee (Economy and Environment): 27th November and 4th December, 2007 -

 

INITIAL REVENUE BUDGET AND CAPITAL PROGRAMME PROPOSALS 2008/09

 

(a)               27TH NOVEMBER, 2007

 

“INITIAL REVENUE BUDGET PROPOSALS 2008/09 (DFICTP) -

 

The Council’s budget was largely determined by the Revenue Support Grant (RSG) settlement set by WAG.  Whilst notification had been received of the provisional settlement which had informed the Council’s Aggregate External Finance (AEF) and resulted in a 3.6% increase over 2007/08, it was noted that - in terms of spend per head of population - this Council was in fact ranked 20th out of the 22 Welsh Local Authorities.  The severity of the settlement was stressed although it was accepted that final figures had yet to be announced.

 

Prior to assessing proposals for 2008/09, consideration was given to the revised estimates for 2007/08 as appended to the report, contained within which were details of the changes which had been required to the original budget.  Attention was drawn to the anticipated deficit of £168k. over all Directorates which would need to be funded from reserves and that some specific reserves would, therefore, be required to be “un-earmarked”.  It was noted that the amended original budget and the projected outturn for 2007/08 both equated to £26,690.  Particular reference was made to the proposal to set an additional savings target for the remainder of 2007/08 for the Directorate of £650k. and the ways in which that could be achieved together with the predicted impact on services as a consequence.  Consideration then focused on the Base Budget 2008/09 a summary of which was appended to the report.  Attention was also drawn to the Budget Strategy for 2008/09 which outlined that

 

·             services should prepare initial revenue budgets based on the cost of providing the current level of service and approved policy decisions (including the cost of price increases and pay awards);

·             increases to budgets approved during the course of the financial year could restrict the freedom the Council had to allocate its resources to priorities during the following budget cycle and consequently

-     supplementary estimates would only increase the base budget if the Council had given specific approval to that effect

-     the cost of increments and staff changes should be found from the base budget unless specific approval had been given for additional funding

-     the effect of replacing grant from outside bodies that had discontinued would not be treated as committed growth and, before any project or initiative that would be met either by wholly or partly by way of grant might proceed, the exit strategy had to be approved

-     certain items of unavoidable committed growth would continue including, for example, the effect of interest changes and financing costs of the Capital Programme

-     services would be expected to identify and achieve recurrent efficiency savings equivalent to at least 2% of their budget;

·             the cost of service development would need to be met from within the respective services from savings that they identified.

 

As indicated above, the summary of the overall base budget was appended to the report.  Inflation amounted to £0.652m. of which £0.339m. related to pay awards and £0.313m. for general price increases.  Committed growth totalled £0.364m. and related to Visible Services Landfill Tax annual increase.

 

A list of the 2008/09 cost pressures as identified by the services was appended to the report.  Altogether those totalled £1.713m. for the Directorate of Environmental and Economic Regeneration although it was noted that the cost of any potential redundancies was not included in that total.  Discussion ensued on the potential impact of the International Sports Village and the resultant likely loss of income on, in the main, Penarth Leisure Centre.  It was agreed that a report on that cost pressure together with the steps proposed to mitigate the impact of loss of income be submitted to this Committee in January, 2008. 

 

It was then

 

RECOMMENDED -

 

(1)       T H A T Cabinet be notified of the Committee’s concern at the proposal to set an additional savings target for the Directorate of £650k. at this late stage in the financial year and at the consequent impact on services.

 

(2)       T H A T, following the conclusion of the business to be transacted at the meeting, Committee stand adjourned until 4th December to allow a report detailing both the proposals to achieve the £650k. savings within the current financial year, as referred to above, together with the anticipated outcome on services to be considered prior to any recommendation(s) being submitted to the Scrutiny Committee (Corporate Resources).

 

Reasons for decisions

 

(1)       To inform Cabinet of the concerns of the Committee.

 

(2)       To inform the consideration of the initial revenue budget proposals more fully.        

 

 

            INITIAL CAPITAL PROGRAMME PROPOSALS 2008/09 (DFICTP) -

 

Progress on the 2007/08 Capital Programme up to 31st October, 2007 was presented together with the Initial Capital Programmes proposals for 2008/09.  Progress on the Capital Programme at 31st October, 2007 was appended to the report.  As regards amendments to the 2007/08 Capital Programme, Cabinet had approved the following changes and, where indicated, referred the same to Council for approval:

 

·             Victoria Park Restoration - increase the Capital Programme by £65,000 to reflect additional grant funding;

·             Barry Regeneration Partnership - increase the Capital Programme by £5,000 to match fund grant aid;

·             Rhoose and Llantwit Major Vale of Glamorgan Line - increase the Capital Programme by £18,000 in order to conclude the scheme;

·             Barry Central Station - Council approval sought for an additional committed cost of £195k. over the existing budget.

 

As regards the 2008/09 Capital Programme, WAG had announced provisional General Capital Funding of £8,198,000 (an increase of 0.28%) over the current year.  It was noted that the final settlement was expected to be announced during January 2008.  It was further noted that the Major Repairs Allowance had not yet been announced by WAG and that Cabinet would be advised of the same as soon as possible.  In addition to funding from WAG, the Council would finance part of the Capital Programme from its own resources and the table below detailed the General Capital Funding and internal resources required to fund the proposed schemes:

 

Analysis of Net Funding Required for the Indicative 2008/09 Capital Programme

£,000

£,000

 

General Fund Resources from Welsh Assembly Government

 

 

Supported Borrowing

6,161

 

General Capital Grant

2,037

 

 

 

8,198

Council Resources

 

 

Capital Receipts

3,666

 

Reserves/Leasing

1,942

 

 

 

5,608

 

Net Capital Resources

 

13,806

 

Appendix B outlined the indicative 2008/09 Capital Programme for the Directorate of Environmental and Economic Regeneration.  An indicative asset renewal budget of £800,000 had been included for Visible Services and £150,000 for Leisure Services (constituting an un-earmarked general provision).  In addition, specific bids had been received which had been classed as asset renewal.  Due to the inclusion of the indicative asset renewal budgets, those specific bids had been shown as a separate heading in Appendix C which listed the unsuccessful bids.  Due to the shortage of capital funding, the only addition to the indicative Capital Programme for 2008/09 was that of the Relocation of Road to Dunraven Bay, whereby further costs were required on an already committed scheme.

 

Bids had been received for schemes that were 100% grant funded even though grant approval had not yet been received.  Whilst the following schemes had no cost to the Council, it was proposed that they be not included in the programme at the current stage since it was uncertain whether approval would be received:

 

·             Central Station Land Purchase - £1,400,000

·             Dinas Powys Bus Prioritisation Lane - £500,000

·             Five Mile Lane Highway Improvements - £250,000

·             Safety Cameras - £50,000.

 

It was noted that, should grant funding be approved, Cabinet had delegated authority to include those schemes in the Capital Programme.

 

Discussion then ensued on the unsuccessful bids as appended to the report, in particular the priority 3 awarded to VS3 - Flood Prevention Schemes.  Reference was made to the devastation caused by the flooding in certain areas, to the continuing concerns of local residents, changing climatic conditions and to the positive and productive meeting of this Committee on 13th instant - as a consequence of which Cabinet would be considering six recommendations.  It was explained that there could be funding available for such matters from within the £800k. allocated to the Visible Service Asset Renewal budget and emphasised that every effort would be made to maximise external funding.  In order to allow proper consideration of the priority that should be afforded to the bid, further information was requested - in particular, the detail of the various schemes proposed, specifying the locations and aims.  Since VS32 - land drainage was clearly related to potential flood mitigation, details were also requested of the proposed schemes contained within that bid in order that a better assessment on the priority of the scheme could be made.  Subsequent questions included identifying under which heading funding for the provision of disabled parking bays had been made, and details of all unsuccessful priority 1 and 2 bids.

 

RECOMMENDED - T H A T, following the conclusion of the business to be transacted at the meeting, Committee stand adjourned until 4th December to allow a report on the following matters to be considered prior to any recommendation(s) being submitted to the Scrutiny Committee (Corporate Resources):

 

·                    details of proposed flood schemes including the location and intended outcome

·                    details of proposed land drainage schemes

·                    clarification as to the funding allocated for the provision of disabled parking bays

·                    details of the unsuccessful priority 1 and 2 bids.

 

Reason for decision

 

To inform the consideration of the initial Capital Programme proposals more fully.

 

(Note: Councillor R.F. Curtis spoke on the above matter with the consent of the Committee.)

 

 

(b)       FINAL RECOMMENDATIONS - 4TH DECEMBER, 2007

 

            INITIAL REVENUE AND CAPITAL PROGRAMME PROPOSALS 2008/09 - ADDITIONAL BUDGETARY INFORMATION (DEER) -

 

As requested on 27th November, details were presented of the proposed areas where savings had been identified to achieve the target of £650k.  22 areas had been identified within Visible Services, Planning and Transportation and Economic Development and Leisure amounting to a potential total saving of £713k.  It was noted that it was intended that each area would be continually monitored for the remainder of the 2007/08 financial year and that alternative areas might need to be identified should the potential savings not be forthcoming from the areas originally identified.

 

The Director had identified the following list of potential areas with estimates as to the amount of savings that could be realised:

 

 

Savings

 

 

Amount (£k)

 

 

Service Impact

 

VISIBLE SERVICES

 

Street lighting

40

Delay of some street lighting repairs and repairs to street furniture following failures/ accidents etc.  Concentration on health and safety and emergency repairs only and ‘making safe’.

Parks /Grounds Maintenance

 

10

Vacancy and overtime control.

 

Highway Maintenance

25

Delay next weed spraying to April.

Highway Maintenance

15

Reduction in verge and footpath maintenance.

 

Highway Maintenance

60

Priority patching and surfacing repairs only (Health and Safety priority).

 

Highway Maintenance

10

Not replacing stolen/damaged street names.

 

Highway Maintenance

25

Predicted trading account surplus.

 

Alps Depot

10

Defer repairs/decoration in offices.

 

Waste/Cleansing

50

Efficiency savings by reducing overtime and seasonal savings.

 

Waste Cleansing

130

Trading account surplus through above earlier in year.

 

Waste Cleansing

30

Control of vacancies.

 

Waste Cleansing

60

Delay pilot schemes such as kitchen waste.

 

Highway Engineers

20

Vacancy and agency control.

 

 

PLANNING AND TRANSPORTATION

 

Development Control

40

Vacancy control and anticipated increase in income from fees.

 

Building Control

10

Vacancy control.

 

Local Development Plan

30

Defer some work to next financial year (consultancy).

 

Policy and Transport

10

Vacancy control.

Conservation

20

Deferring consultant study to next year.

General

25

Recalculation of pay award and superannuation.

 

 

ECONOMIC DEVELOPMENT AND LEISURE

 

Countryside

40

Reducing biodiversity initiatives.

 

Economic Development

39

Suspend for this year small business grants.

 

Division

14

Vacancy control.

 

 

Total potential saving

 

 

713

 

 

 

He then clarified the detail in respect of the proposed actions and amplified the potential effect on service delivery.  He stressed that whilst there would be an impact on services, the aim was to ensure that priority services were delivered efficiently and effectively in order to mitigate any impact on the public, health and safety concerns being paramount.  The Director further stressed that, where feasible, the potential savings listed had been based on the profile of last year’s spending during the same period but that the figures quoted were necessarily estimates.  The situation would be closely monitored during the course of the remaining financial year in order that alternative areas could be identified should the originally identified savings not be forthcoming. 

 

In respect of the unsuccessful capital bids VS3 - Flood Prevention Schemes and VS32 - Land Drainage, Members considered the information before them. The six schemes to be submitted to the WAG for consideration for flood prevention works and potential grant funding of 85% were

 

·                    Coldbrook catchment

·                    Penarth flooded areas

·                    Woodham Park, Barry

·                    Caerleon Road, Dinas Powys

·                    Conybeare Road, Sully

·                    Readers Way, Rhoose.

 

Until the WAG had agreed particular schemes, the final value of the Council’s 15% would not be known;  however it would be necessary for a sum of money to made available in preparation for the acceptance of any schemes put forward.  Without capital allocation, it was considered that funding could be made available from either the Visible Services Asset Renewal budget or from other schemes not being progressed.  In respect of land drainage, the proposal was to undertake works to watercourses within the Vale to protect certain areas from flooding incidents in the future.  It was considered that, should the bid not be successful, money could be found from the Asset Renewal fund.  It was explained that this fund had traditionally been used to fund capital schemes where need had been identified but no specific allocation previously made.

 

Attention was drawn to the fact that the provision of disabled parking bays was not funded from the Capital Programme.  Funding currently existed in the Revenue Budget to implement up to 10 bays per annum at a total cost of approximately £6k.  Discussion ensued on the Council’s current practice in respect of the provision of such bays and the fact that public expectation was high but the budget was extremely limited.  It was subsequently proposed that the Committee review the current situation in light of the likely worsening budgetary position.  It was noted that there had been no unsuccessful Priority 1 or Priority 2 Bids (and that the supplementary report had been updated accordingly). 

 

Following further discussion on the above and related matters, it was

 

RESOLVED -

 

(1)       T H A T, having carefully considered the savings put forward by the Director, and the fact that the £650k. cuts required by Cabinet within the current financial year were considered excessive and would inevitably lead to a reduction in services, the Scrutiny Committee (Corporate Resources) be asked to recommend to Cabinet that, if savings were required to be made, those proposed savings relating to Highway Maintenance affecting weed spraying, priority patching and surfacing repairs only and the non-replacement of stolen / damaged street names be removed from the list shown above given the importance to the public and, in the case of the latter two, the false economy of not undertaking the necessary work would place further service pressures on the Directorate for the following financial year.

 

(2)       T H A T the Initial Revenue Budget proposals for 2008/09 and the Initial Capital Programme proposals for 2008/09 be noted and the Scrutiny Committee (Corporate Resources) requested to take account of the views of this Committee as indicated above.

 

Reasons for decisions

 

(1&2)  To notify the Scrutiny Committee (Corporate Resources) of this Committee’s view.


 

 

·                    References from Scrutiny Committee (Lifelong Learning): 28th November, 2007 -

 

INITIAL REVENUE BUDGET PROPOSALS 2008/09 (DFICTP) -

 

Committee were advised of the initial budget proposals for 2008/09 and were informed of the amended original budget for 2007/08 for services which formed part of the Committee’s remit. 

 

Appendix 1 to the report set out the necessary transfers to the original estimate for 207/08, which were required to be made as follows:

 

·                    Asset Rents - the main reason for this movement was due to revisions to the Accounting Code of Practice that required deferred government grant income to be released to Revenue Services which offset the asset rent already charged.

·                    Recharges etc. - movement in charges between internal Council services.

·                    Budget Transfers - budget adjustments to reflect transfers of functions and responsibilities between services.  Primarily, this related to:

-           the transfer from Human Resources and Equalities to Finance - TransAct staff (£227,000) and to Chief Executive - Equalities (£191,000).

 

The additional pressure arising from the increased price of care home fees could not be predicted at the beginning of the year.  It was unrealistic, at this point in the year, to expect Social Services to cover these costs within their existing budget.  Therefore, it was proposed that an additional allocation of £1.11m. be given to Social Services in 2007/08 to cover these costs and those of the arbitration.  It was noted that this increase was for 2007/08 only and Social Services would need to identify savings to cover the additional costs in future years. 

 

It was essential that early measures be taken to bring down spending, in view of the predicted poor settlement and current financial position.  Consequently, following discussions with the individual directors, it was proposed to set an additional savings target for 2007/08 as follows:

 

 

£’000

Environmental and Economic Regeneration

650

Legal, Public Protection and Housing

200

Finance, ICT and Property

200

Chief Executive

60

 

 The total target savings above totalled £1.11m.  They equated to approximately 2% of the individual budgets. 

 

Social Services had not been given an additional savings target and would need to bring a revised Budget Action Plan to Cabinet setting out how they intended to bring their expenditure down to their revised target.  However, a moratorium on the filling of all vacant posts within the Directorate had been put in place, with the exclusion of staff in residential homes and in other exceptional circumstances.

 

Learning and Development had similarly not been given an additional savings target.  The bulk of the budget had already been delegated to Schools for 2007/08.  The Director would produce a Budget Action Plan setting our how expenditure within Lifelong Learning an Catering would be brought within budget.  A moratorium on the filling of all vacant posts within the Directorate had been put in place, with the exclusion of exceptional circumstances.

 

The following table compared the amended original budget with the projected outturn for 2007/08:

 

 

2007/08

2007/08

Variance

 

Amended Original Budget

Projected Outturn

(+)Favourable

(-)Adverse

 

£’000

£’000

£’000

Learning and Development

 

 

 

Education and Schools

82,125

81,858

+267

Libraries

2,561

2,561

0

Lifelong Learning

1,900

2,047

-147

Catering

1,075

1,195

-120

Human Resources and Equalities

0

0

0

 

Education and Schools - although there were a number of pressures on the service the expenditure on placements in independent schools included in the Access and Inclusion budget was forecast to be £130,000 less than was estimated.  This was due to a number of pupils returning to placements within the Authority.  At present there was also potential income of £350,000 as a result of more out of county pupils.  However, given the volatile nature of this budget, the income was not considered secure at this time.  In addition, within the Strategic Planning and Performance budget, as a result of the combination of a recent re-tendering exercise on certain home to school transport routes and contract inflation for all other routes being lower than expected, there was a projected saving of £137,000 on home to school transport.  The education base budget currently included £450,000 to support the School Investment Strategy.  In 2007/08 the budget would be used to help fund the costs of the external design team.  From 2008/09 it would be available to support Prudential borrowing.

 

Lifelong Learning - the service continued to predict a potential adverse variance of £147,000 due to delay in starting the new learning programmes to the economically inactive and low enrolments over the summer period - £51,000 to premises costs at the Heritage Skills Centre - £9,000 and the costs of the Vale Learning Network - £87,000.  The Director of Learning and Development had advised that actions would be implemented in an effort to reduce this figure and consequently reduce the support needed from the Strategy and Performance budget. 

 

Catering - an adverse variance of £120,000 was predicted for this service.  This was due to reduced meal numbers not yet recovering to the previous levels and additional cost pressures on food and staff resources resulting from the implementation of Welsh Assembly Nutritional guidelines.

 

There was currently a projected overall deficit of £168,000 that would need to be funded from the reserves, in addition to the £450,000 required to balance the 2007/08 budget.  General reserves as at 1st April 2007 amounted to £5.7m. and consequently as a prudent minimal level for the General Reserve is £4m.  Some specific reserves would need to be “un-earmarked”.

 

The budget strategy and timetable for 2008/09 had been approved by Cabinet on 25th July, 2007 as part of the 2007/08 - 2010/11 Medium Term Financial Plan (Minute No. C3160). 

 

The Budget Strategy for 2008/09 outlined that:

 

·                    in order to establish a baseline, services should prepare initial revenue budgets based on the cost of providing the current level of service and approved policy decisions.  This meant the cost of price increases and pay awards should be included.

·                    Increases to budgets approved during the course of a financial year could restrict the freedom the Council had to allocate its resources to priorities during the following budget cycle when it was aware of all the competing demands.  Consequently:

-                      supplementary estimates would only increase the base budget if Council had given specific approval to this effect.  Increase met by virement within a year would not be treated as committed growth.

-                      Directors should find the cost of increments and staff changes from their base budget unless the relevant specific approval had been given for additional funding.

-                      The effect of replacing grant from outside bodies that had discontinued would not be treated as committed growth.  In addition, before any project or initiative that was to be met either wholly or partly by grant may proceed the exit strategy must be approved.

-                      Certain items of unavoidable committed growth would continue and these include the effect of interest charges and the financing charges of the Capital Programme, increases in taxes, increases in levies and precepts charged by outside bodies and changes to housing benefits net expenditure.

-                      Services would be expected to identify and achieve recurrent efficiency savings equivalent to at least 2% of their budget and Schools should plan for efficiency savings of at least 0.3%.

·                    The costs of service development would need to be met from within the respective services from savings that they identified;  in addition works may need to be prioritised within a service to meet any higher priority demands.  Services had therefore been asked to identify any burgeoning revenue cost pressures.

 

A summary of the overall base budget for 2008/09 was attached at Appendix 2 to the report.  This had been arrived at by adjusting the 2007/08 budget for items such as inflation and unavoidable growth.

 

Inflation amounted to £0.460m. of which £0.304m. related to pay awards and £0.156m. for general price increases.  It was noted that these figures excluded inflation for Schools, which was dealt with as a “Cost Pressure”. 

 

A list of the 2008/09 Cost Pressures as identified by the Service was attached to the report at Appendix 3.  These were not shown in any order of priority and included costs relating to Social Services that were a continuation of the level of overspending in 2007/08.  Altogether these totalled £4.594m. and some would need to be met for some services.  They excluded the cost of redundancies, which may be incurred in order to maintain the budget within the resources available.  It was noted that these costs could be significant. 

 

Having considered the detail of the report, Members welcomed the continued high level of delegation of resources to Schools, but noted with concern that the actual level of funding to individual Schools was still one of the lowest in Wales. 

 

Despite the Service being starved of resources, the service still had to respond to Welsh Assembly Government initiatives, which devoted a great deal of management time.

 

As such, Committee noted that the moratorium of the filling of vacancies would cause problems to the Service at a strategic level. 

 

RECOMMENDED - T H A T the initial revenue budget proposals for 2008/09 be noted.

 

Reason for decision

 

In order that Cabinet be informed before making a final proposal on the budget.

 

 

INITIAL CAPITAL PROGRAMME PROPOSALS 2008/09 (DFICTP) -

 

Committee were advised of the progress on the 2007/08 Capital Programme for the period ended 31st October, 2007 and received for consultation purposes the initial capital proposals for 2008/09.

 

Details of progress on the Capital Programme as at 31st October, 2007 were detailed in Appendix A to the report. 

 

On 14th November, 2007 the Welsh Assembly Government had announced the provisional 2008/09 General Capital Funding.  The provisional allocation was £8,198,000 which represented an increase of £23,000 (0.28%) over the current year.  The final settlement was expected to be announced during January 2008.  

 

In addition to funding from the Welsh Assembly Government, the Council would finance part of the Capital Programme from its own resources, e.g. capital receipts and reserves.

 

Attached at Appendix B to the report were details of the indicative 2008/09 Lifelong Learning Capital Programme.

 

An indicative asset renewal budget of £800,000 had been included in the figures for Schools.  This constituted an un-earmarked general provision.

 

In addition to the Capital Bids shown at Appendix B to the report, Appendix C listed Capital Bids received that had been unsuccessful and which had not been put forward for inclusion in the 2008/09 Programme. The Corporate Asset Management Group had prioritised schemes that fell within their remit.  The method of prioritisation used was detailed in the Authority’s Capital Investment Strategy and was shown in the following table:

 

Priority Level

Criteria

1.

Health and Safety Legislation

2.

Other Legislation / Statutory Requirement

3.

Sufficiency; Corporate Plan; Economic Sense

4.

Condition; Suitability

5.

Welsh Assembly Government objectives

6.

Low Priority

 

Due to the shortage of Capital Funding, the only addition to the indicative Capital Programme for 2008/09 was that of the Relocation of Road to Dunraven Bay, whereby further costs were required on an already committed scheme.

 

Council, on 12th October, 2005, had approved the School Investment Strategy.  It approved that the school development budget be increased by £1,000,000 from 2008/09 onwards.  This had been reflected in Appendix B to the report.  The Council also approved that the £9m. one-off School Building Improvement Grant and £1.4m. of existing useable capital receipts, be utilised for the School Investment Strategy.  These budgets were also included in Appendix B.  Approval had also been given for capital receipts generated by schools to be ring fenced for the Investment Strategy up to £6.5m. and that unsupported borrowing of up to £7.3m. could be undertaken.  Davis Langdon had been appointed as the Consultant Project Design Team and would now be proceeding with the design work for Cowbridge Comprehensive School.

 

RECOMMENDED - T H A T the initial capital budget proposals be noted and that Scrutiny Committee (Corporate Resources) and Cabinet be informed accordingly.

 

Reason for decision

 

Following full consultation on the future Capital Programme.

 

 

647     SOCIAL SERVICES CHANGE PLAN - RISK IMPLICATIONS -

 

This Scrutiny Committee at its meeting held on 9th October, 2007 requested the Corporate Management Team to undertake a risk assessment review with a view to ascertaining the overall risk implications for the Council and its services in the event of savings associated with the above Change Plan not being achieved, including any assessment of risk to the Council as a consequence of un-earmarking reserves for those projects and the findings of the review be reported to a future meeting of this Scrutiny Committee (Minute No. 422 refers).   Consequently the results of the review of the overall risk implications for the Council and its services as referred to above were set out for Member consideration.

 

It was noted that issues related to the financial risk to the Council associated with the level of Social Services expenditure which had recently formed the basis of a number of key reports to both Cabinet and Scrutiny Committee over the past few years. 

 

More recently, the 2006/07 Medium Term Financial Plan highlighted that “even with the added pressure of finding efficiency savings that all Council services now face, the immediate challenge that must still be addressed is that of the Social Services overspend”.  The Plan also emphasised that it would be “essential that Members develop a firm review of the future resources required to run Social Services in the light of the overall resources available to the Council”. 

 

The subsequent approval of the Social Services Change Plan and its attendant targets for savings formed the Council’s response to the above challenge.  As a consequence, the 2007/08 Final Revenue Budget Proposals had due regard to the financial impact of both this and the many other cost pressures facing the Council.  In particular, the need to use £4.050m. of reserves to support the 2007/08 Budget necessitated a fundamental examination of the level of reserves to ascertain the adequacy and strategy for use.

 

In order to achieve this, the review examined Specific Reserves to identify those that could be un-earmarked from the purposes for which they were originally set aside and repaid into the General Reserve.  As a result, a number of revenue and capital reserves were reduced and / or deleted and the funds released, used to bolster the General Reserve.

 

The ongoing nature of financial constraints facing the Council also meant that a number of other reserves were identified for potential un-earmarking to meet future pressures.  These reserves were as follows:

 

Potential Reserves Transfer

£’000s

Various service reserves

900

Waste Management Reserve

1,500

Corporate Reserves

700

Job Evaluation

1,000

Capital Reserves

600

Total

4,700

 

In addition to the above the 2007/08 Final Budget Proposals also warned that un-earmarking Specific Reserves meant the Council no longer had the funding set aside for those purposes.  Further, interest on reserves held by the Council assisted in funding the revenue budget.  The report further stated that whilst Services’ budgets were generally under pressure, they remained a particular risk in the Social Services budget and the Service must take the action necessary to achieve its financial targets as a matter of the highest priority.

 

It was noted that the Social Services had slipped in the delivery of £2m. savings required in 2007/08 under their budget action plan, with a total of £1.3m. savings anticipated to date.  In addition, continued pressure on the Service had resulted in estimated additional costs of £1.7m. in excess of the allocated budget for the year.  In addition, it was further noted that the above figures excluded the £1.1m. anticipated additional costs following the recent increase in the interim fee for residential and nursing homes to £390 per bed per week.  This sum would be funded from reserves for 2007/08 and was reflected in the amended original budget reported to Cabinet on 21st November, 2007.  All these actions, however were likely to have the further detrimental impact upon the level of reserves. 

 

Notwithstanding the above matters, the prospect of a particularly bleak settlement for 2008/09 had necessitated proposals to further reduce Services’ expenditure in 2007/08 via a combination of financial saving targets totalling £1.1m. and a moratorium on filling vacant posts.  This had consequent risks of maintaining service delivery and if continued in 2008/09 was likely to have implications for employees and then there could be a reduction in jobs.

 

There were still nine other Corporate issues that posed a significant risk to the Council.  The most pressing of these had been assessed as the “impact of job evaluation and equal pay conditions on work force planning”.  However, £1m. of the £3m. reserves set aside for this purpose had been previously identified as potentially needed to support the General Reserve.  It was also further noted by no means certain that even the original sum set aside would be sufficient to meet the eventual level of costs involved.  This risk had also been highlighted in 2007/08 Final Revenue Budget Proposals.  All of the remaining risks also had the potential to add significant financial costs attributed to them.

 

The 2007/08 Medium Term Financial Plan predicted a revenue shortfall of some £6.5m. by 2010/11.  The 2008/09 provisional Revenue Support Grant settlement recently announced did little to improve the situation. 

 

Having regard to the above it was clear that the overall risk implications for the Council were not limited to just those connected with the Social Services Change Plan.  Reduced external funding, coupled with existing use of reserves to support the base budget and additional cost pressures facing other key services would inevitably place the Council in a position where the number and level of competing demands could not now be met, irrespective of the work done to identify cost and efficiency savings etc.  In this respect, the Council’s Risk Management Strategy the perceived risk of insufficient funding to poor Council services was now classified as “high” in terms of both magnitude and likelihood.  In the event of Social Services continuing to fail to restrict their expenditure to the allocated budget, this would inevitably impact upon the overall resources available to the Council to maintain other services and as a consequence Members would need to decide upon the relative priorities for future service deliveries. 

 

Discussion ensued on a number of matters associated with the risk of Social Services not meeting their budget targets as detailed in the Action Plan.  Of particular concern to the Scrutiny Committee was the reduction in reserves; the consequential impact in terms of the loss of interest accrued on those reserves; the adverse impact on the Council’s other services given additional efficiency savings had to be made half way through the current financial year; the fact that there was no absolute assurance that the identified £1.3m. savings would actually be achieved by the end of the financial year; the consequential impact on staff morale and with the potential of job losses; the effect of un-earmarking reserves on those projects; concerns regarding Change Plan slippage and the responsibility of Corporate Management Team (CMT) to appropriately manage the ongoing budgetary situation within Social Services so as to avoid recurring budgetary deficits which were unsustainable.

 

Whilst the Committee acknowledged the importance of Social Services, it was however incumbent on service budget holders to manage their budgets within margins set. Chairman indicated that it was unrealistic to expect the other Directorates within the Council, who also provided important services, to find additional savings to cover the ongoing budgetary shortfall within Social Services.

 

Reference was made to the general under funding of Social Services throughout the UK and it was for the Assembly and UK governments to resolve the funding issues relating to this function.

 

Councillor N. Moore, who spoke with the consent of the Committee, referred to the ongoing progress being achieved in relation to the Change Plan and in particular to the following matters:

 

·             Review of Care Packages had been prioritised

·             Budgets had now been delegated down to Operational Manager level and Team Managers so that expenditure could be appropriately monitored

·             Whilst there had been a reduction on expenditure in respect of Older People’s Services, there had been an increase in respect of Learning Disabilities.  However, a new contract had recently been let which should provide expenditure reductions

·             Budgets had been extrapolated in detail to provide Cabinet with information for monitoring purposes.

 

Having regard to the above and related issues, it was

 

RECOMMENDED -

 

(1)       T H A T this Scrutiny Committee register its serious concern at the ongoing Social Services budget overspend and that the report be referred to Cabinet for consideration.

 

(2)       T H A T the Corporate Management Team be requested to consider how Social Services can be brought to manage their affairs within the budget set and that a further report be submitted to this Committee in January 2008.

 

(3)       T H A T this Scrutiny Committee emphasises its concern regarding the ongoing use of capital reserves, the need to un-earmark reserves to fund the Social Services overspend and the consequential risk implications for the Council’s general ability to deliver services to its community in the future.

 

Reason for recommendations

 

(1)       To ensure the views the Committee are considered.

 

(2)       To ensure robust and adequate financial management arrangements are in place having regard to the Council’s predicted revenue shortfall as cited in the Medium Term Financial Plan 2007/08.

 

(3)       Having regard to the Council’s Risk Management Strategy, Corporate Risk Register and Medium Term Financial Plan 2007/08.            

 

 

648     INITIAL REVENUE BUDGET PROPOSALS 2008/09 (DFICTP) -

 

The Council had been provisionally advised that for 2008/09 it would receive from the WAG a Revenue Support Grant (RSG) of £110,924,000 and Non-Domestic Rates (NDR) of £30,973,000.  Together, these sums constituted the Council Aggregate External Finance (AEF) and represented an increase of 3.6% over that received for 2007/08 and was net of an assumed 1% efficiency saving.  It was noted that the provisional settlement included additional resources of £89,000 in respect of increased charges, which would fall on the Council as a result of a change in the fees on Court cases in Family Court.  WAG had advised that there would be other adjustments and these would be incorporated into the final settlement.

 

WAG had also announced that the Council would provisionally continue to receive a Deprivation Grant of £167,000 and a Performance Incentive Grant of £1,239,000.  These were both unhypothecated grants.  WAG was presently consulting with Local Authorities in respect a new Local Authority Business Growth Incentive (LABGI) grant scheme to be introduced from 1st April, 2008. 

 

In addition the report set out in Appendix 1 the necessary transfers to the original estimate for 2007/08 which were required to be made as follows:

 

·                    Asset Rents - The main reason for this movement was due to revisions to the Accounting Code of Practice that required deferred Government Grant income to be released to revenue services which offset the asset rent already charged.

·                    Recharges Etc. - Movement in charges between internal Council services.

·                    Budget Transfers - Budget adjustments to reflect transfers of functions and responsibilities between services.  Primarily, this related to:

-                      The transfer from Human Resources and Equalities to Finance - TransAct staff (£227,000) and to Chief Executive - Equalities (£191,000).

-                      Transfers within Social Services had taken place but had a nil net value.

-                      Transfers between Planning and Transportation and Economic Development and Leisure had taken place but had a nil net balance.

-                      The transfer from Visible Services to General Policy - General savings adjustment not required (£115,000).

-                      The transfer from Legal, Democratic and Registrars to Chief Executive - Contact Centre (£21,000).

-                      The transfer from Public Protection to Chief Executive - Contact Centre (£30,000).

 

In addition to the above matters, pressure arising from the increased price of care home fees could not be predicted at the beginning of the year.  It had been considered unrealistic at this point in the year to expect Social Services to cover such costs within their existing budgets.  Therefore, it had been proposed that an additional allocation of £1.11m. be provided to Social Services in 2007/08 to cover these costs and those of the arbitration.  It was noted that this increase was for 2007/08 only and Social Services would need to identify savings to cover the additional costs in future financial years. 

 

It was essential that early measures were taken to bring down spending, in view of the predicted poor settlement and current financial position.  Consequently, following discussions with the individual Directors, it was proposed to set an additional saving target for 2007/08 as follows:

 

Directorate

£’000

Environmental and Economic Regeneration

650

Legal, Public Protection and Housing Services

200

Finance, ICT and Property

200

Chief Executive

60

 

The target savings above totalled £1.1m.  They equated to approximately 2% of the individual budgets.  These changes were reflected in adjustments as detailed in Appendix 1 to the report. 

 

Social Services had not been given an additional savings target and would need to bring a revised Budget Action Plan to Cabinet setting out how they intended to bring their expenditure down to their revised target.  However, a moratorium on the filling of all vacant posts within the Directorate had been put in place with the exclusion of staff in residential homes and in other exceptional circumstances.

 

With regard to Learning and Development this Directorate had similarly not been given an additional savings target.  The bulk of their target had already been delegated to schools for 2007/08.  Consequently the Directorate would need to produce a Budget Action Plan setting out how the expenditure within Lifelong Learning and Catering would be brought within budget.  A moratorium on the filling of all vacant posts within this Directorate had been put in place with the exclusion of exceptional circumstances.

 

Consideration was also given to the amended original budget and estimated outturn for 2007/08.  The overall deficit of £168,000 would need to be funded from reserves, in addition to the £4,050,000 required to balance the 2007/08 budget.  General Reserves as at 1st April, 2007 amounted to £5.7m. and consequently it was a prudent minimum level for the General Reserve was £4m., some specific reserves would need to be “un-earmarked”. 

 

The Cabinet at its meeting on 25th July, 2007 as part of the 2007/08-2010/11 Medium Term Financial Plan approved the Budget Strategy and timetable for 2008/09.  The details of the strategy was detailed in the report.

 

The summary of the overall base budget for 2008/09 was attached at Appendix 2 to the report and had been arrived at by adjusting the 2007/08 budget for items such as inflation and unavoidable growth.  It was noted that inflation amounted to £3.463m. of which £1.522m. related to pay awards and £1.941m. for general price increases.  It was further noted that these figures excluded inflation for Schools, which was dealt with as a cost pressure. 

 

Committed growth totalled £5.759m. and related to the following matters:

 

·                    Environmental and Economic Regeneration

Visible Services - £364,000 for Landfill Tax annual decrease.

 

·                    General Policy - £4,050,000 use of balances during the 2007/08 budget process: reduction in interest receivable of £200,000 as a direct result of the use of balances and £300,000 increased cost of funding the Capital Programme.

 

·                    Chief Executive - £845,000 full year effect of the Contact Centre implementation of single number.

 

With regard to cost pressures for 2008/09 these had been identified by Services and were detailed in Appendix 3 to the report.  In total these amounted to £12.607m. and some would need to be met from Services.  These excluded the cost of redundancies, which may be incurred in order to maintain the budget within resources available.  However it was noted that such costs could be significant.

 

The base budget for 2008/09 based on the provisional Revenue Support Grant settlement and assuming no increase in Council Tax income, the total resources available for 2008/09 was £185.224m.  After adjusting for transfers of specific grant into resettlement this was £0.676m. less than the requirement set out in the initial 2008/09 base budget and did not take into account any of the £12.607m. of cost pressures.

 

RECOMMENDED -

 

(1)       T H A T this Scrutiny Committee notes the Initial Revenue Budget Proposals for 2008/09, subject to recommendation (2) - (4) below and be referred to Cabinet.

 

(2)       T H A T the recommendation of the Scrutiny Committee (Community Wellbeing and Safety) be noted.

 

(3)       T H A T the recommendations of the Scrutiny Committee (Economy and Environment) be endorsed.

 

(4)       T H A T the recommendation of the Scrutiny Committee (Lifelong Learning) be noted.

 

 

649     INITIAL CAPITAL PROGRAMME PROPOSALS 2008/09 (DFICTP) -

 

Details of the progress on the 2007/08 programme for the period 1st April to 31st October, 2007 and the Initial Capital Programme Proposals for 2008/09 were submitted.  Progress on the Capital Programme as at 31st October, 2007 was appended to the report.  In respect of amendments to the 2007/08 Capital Programme, it was noted that Cabinet had approved the following changes and, where indicated, referred the same to Council for approval:

 

Directorate of Environmental and Economic Regeneration -

·             Victoria Park Restoration - increase the Capital Programme by £65,000 to reflect additional grant funding

·             Barry Regeneration Partnership - increase the Capital Programme by £5,000 to match fund grant aid

·             Rhoose and Llantwit Major Vale of Glamorgan Line - increase the Capital Programme by £18,000 in order to complete the scheme

·             Barry Central Station - Council approval was sought for an additional committed cost of £195,000 over the existing budget.

 

Directorate of Legal, Public Protection and Housing Services -

·            Vale Community Alarm System (VCAS) - the Chief Executive had exercised his Emergency Powers to approve the purchase of a VCAS communication system - increase the Capital Programme by £203,000 in order to initially fund the procurement of the system.

 

Directorate of Social Services -

·             Woodland Day Centre - increase the Capital Programme by £200,000 in order to enable the work required to complete the transfer of facilities from the above day centre

·             Flying Start Grant - increase the Capital Programme by £34,500 in order to undertake works related to the establishment of outdoor play areas at Camau Cyntaf Nursery (£7,601), Kidzone (£16,209) and provision of storage area at the Flying Start offices at Skomer Road (£10,592).

 

Policy -

·             Civic Office Car Park Improvement Works - reduce the Capital Programme by £22,000 given that the associated works were completed during 2006/07.

 

Council, on 12th October 2005, gave Cabinet the authority to withdraw a budget from a Capital Programme if a scheme was not contractually committed within 18 months of being included in the Capital Programme.  In the event of this arising, a new bid would have to be submitted as part of the coming year’s budget setting process to reintroduce the scheme into the Capital Programme.  Having regard to this, the following schemes remained contractually uncommitted 18 months after approval but the services had requested that the schemes remained in the Capital Programme and be slipped from 2007/08 into 2008/09.  Appendix A and B to the report detailed the matters below, based on the assumption that this request being approved:

 

Directorate of Social Services -

·             EMI Beds - Social Housing Grant funding would not been spent in the current financial year and accordingly it was requested that £500,000 be slipped into 2008/09 to enable this funding to be considered as part of this development

·             Adult Respite Care - the current year allocation of £500,000 was intended for the purchase of a property in order to provide day care facilities for adults with learning disabilities.  Problems had arisen whilst attempting to progress the purchase of an appropriate property and accordingly £500,000 be slipped into 2008/09.

 

As regards to the 2008/09 Capital Programme, WAG had announced provisional General Capital Funding of £8,198,000, an increase of £23,000 (0.28%) over the current year.  It was noted that the final settlement was expected to be announced during January 2008.  It was further noted that the Major Repairs Allowance had not yet been announced by WAG and that Cabinet would be advised of the same as soon as possible.  In addition to the funding from WAG, the Council would finance part of the Capital Programme from its own resources and the table below detailed the General Capital Funding and the internal resources required to fund the proposed schemes:

 

Analysis of Net Funding Required for the Indicative 2008/09 Capital Programme

£,000

£,000

 

 

 

General Fund Resources from Welsh Assembly Government

 

 

Supported Borrowing

6,161

 

General Capital Grant

2,037

 

 

 

8,198

Council Resources

 

 

Capital Receipts

3,666

 

Reserves/Leasing

1,942

 

 

 

5,608

 

 

 

Net Capital Resources

 

13,806

 

In addition to the above, Appendix B outlined the indicative 2008/09 Capital Programme which included allocations already approved by Council and the slippage requests referred to previously.

 

Indicative asset renewal budgets had been included as set out below and were further detailed in Appendix B to the report:

 

·        Education                                 £800,000

·        Social Services                           £150,000

·        Visible Services                          £800,000

·        Leisure Services                         £150,000

·        Miscellaneous Buildings                £200,000

 

The above constituted an un-earmarked general provision. Directors had made specific bids which had been classed as asset renewal.  Due to the inclusion of the indicative asset renewal budgets, these specific bids had been shown as a separate heading as detailed in Appendix C to the report, which listed the unsuccessful bids.  Specific asset renewal schemes would be reported to a future Cabinet for approval.

 

In addition to the capital bids detailed in Appendix B, Appendix C listed capital bids received that were unsuccessful and consequently had not been put forward for inclusion in the 2008/09 programme.  Due to the shortage of capital funding, the only addition to the indicative Capital Programme for 2008/09 was that of the Relocation of Road to Dunraven Bay, whereby further costs were required on an already committed scheme.

 

Bids had been received for schemes that were 100% grant funded even though grant approval had not yet been received.  Whilst the following schemes had no cost to the Council, it was proposed that they be not included in the programme at the current stage since it was uncertain whether approval would be received:

 

·             Central Station Land Purchase - £1,400,000

·             Dinas Powys Bus Prioritisation Lane - £500,000

·             Five Mile Lane Highway Improvements - £250,000

·             Safety Cameras - £50,000.

 

It was noted that, should grant funding be approved, Cabinet had delegated authority to include those schemes in the Capital Programme.

 

Included in the unsuccessful bids were also number of schemes which required match funding from the Council in the sum of £2,008,000.

 

Having considered the initial budget proposals contained in the report, the comments of the other Scrutiny Committees referred to previously, and the views expressed at this meeting, it was

 

RECOMMENDED -

 

(1)       T H A T the Initial Capital Programme Proposals for 2008/09 be noted, subject to recommendations (2)-(4) below and referred to Cabinet.

 

(2)       T H A T the recommendation of the Scrutiny Committee (Community Wellbeing and Safety) be noted.

 

(3)       T H A T the recommendation of the Scrutiny Committee (Economy and Environment) be noted.

 

(4)       T H A T the recommendation of the Scrutiny Committee (Lifelong Learning) be noted.