Agenda Item No 5

The Vale of Glamorgan Council

Environment and Regeneration Scrutiny Committee: 13th July 2017

Report of the Director of Environment and Housing

Revenue and Capital Monitoring for the period 1st April to 31st  May 2017

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 May 2017 regarding those revenue and capital budgets, which form this Committee's remit.

Recommendation

It is recommended that :-

1. The position with regard to the 2017/18 revenue and capital monitoring is noted.

Reason for the Recommendation

1. That Members are aware of the position with regard to the 2017/18 revenue and capital monitoring relevant to this Scrutiny Committee. 

Background

2. Council on 1st March 2017 (minute no 864 and 863 respectively) approved the Revenue and Capital Budgets for 2017/18. Reports monitoring expenditure are brought to this Committee on a regular basis.

Relevant Issues and Options

Revenue

3. The Revenue Budget and projected outturn for 2017/18 are shown in the table below. It is early in the financial year and it is currently projected that services under this Committee will outturn within target at year end.

4. A graph and table setting out the variance between profiled budget and actual expenditure to date is attached at Appendix 1.
5. Highways & Engineering - There is currently a £61k favourable variance against the profiled budget. The main reason is due to vacant posts currently within the department, however, key posts have recently been filled by Agency staff therefore it is currently projected that the budget will outturn on target.
6. Waste Management - There is currently an adverse variance of £16k to the profiled budget. The variance to date is due to overspends on staffing and transportation costs. The Waste Management budget has been reduced in 2017/18 for further vehicle savings however the department are unlikely to be able to achieve these in the short term due to the increased distance that has to be travelled as all waste disposal points are now situated in Cardiff. Due to this, £200k was set aside in the Visible Services Reserve at the end of 2016/17 to offset these pressures in 2017/18. It is currently anticipated that the budget will outturn on target.
8. Transportation - There is currently a favourable variance of £11k against the profiled budget. Staffing costs within the division are lower than budgeted to date. There is also a slight underspend within the supported buses budget which is assisting the current favourable position. As it is early in the year, it is currently anticipated that this service will outturn on budget for 2017/18.
9. Visible Services Reshaping Services Savings Target - In 2017/18 there is a savings target of £525k allocated to Visible Services from the current Reshaping Services programme. The proposed means of achieving this saving was approved by Cabinet on 24th April 2017 and is through the introduction of a new target operating model for the service. This savings target has yet to be allocated to specific services and is being held centrally within the Visible Services budget pending the implementation of the new service model, which is anticipated to commence from September 2017 onwards.
10. Regeneration - This budget covers the Countryside, Economic Development and Tourism & Events functions. There is currently a favourable variance of £21k against the profiled budget due in the main to staff vacancy savings whilst awaiting re-appointments to be made. At this stage it is anticipated that this service will outturn on target.
11. Development Management - There is currently a £27k favourable variance against the profiled budget for May, mostly due to staff vacancies and higher than anticipated Building Regulation fees. As it is early in the financial year it is anticipated that this service will outturn on target.

2017/18 Savings Targets

11. Attached at Appendix 2 is a list of savings to be achieved this year for this Committee. It is anticipated that the £244k Transport Review saving in Visible Services will not be achieved in full this year. As detailed earlier in this report, funding has been ringfenced in the Visible Service Fund to cover the projected shortfall for the service, of which £144k relates to this savings target.

Capital

12. Appendix 3 details financial progress on the Capital Programme as at 31st May 2017.
13. Members should be aware that Appendix 3 includes requests for unspent committed expenditure to be slipped from 2016/17 into 2017/18. A request for this slippage has been approved by Managing Director's Emergency Powers.
14. Additional Resurfacing - £500k has been included in both the 2017/18 and 2018/19 Capital Programmes for additional resurfacing works. To prevent roads deteriorating further and to prevent further costs as a result of this, it has been requested that £500k is brought forward from 2018/19 into the 2017/18 Capital Programme. This is funded from the Visible Services Reserve.
15. Dinas Powys to Cardiff Corridor Bus Priority Measures - It has been requested that £22k is included in the capital programmed for a new Visim model at the Merrie Harrier Junction. This is to be funded from s106 monies.
17. Visible and Transport Services Asset Renewal - A delegated authority request has been approved to allocate the £450k Asset Renewal budget as follows:

17. Five Mile Lane - This scheme has been delayed due to the tendering process and the archaeological investigation. As a result, Capita have been asked to reprofile the scheme spend. It is anticipated that £9.3m will be spent in 2017/18 and it has therefore been requested to carry forward £8.279m into 2018/19 Capital Programme.
18. Harbour Road Car Park Cycleway Scheme (Phase 5) - An emergency power was approved on the 28th March 2017 to carry forward the match funding of £70k into 2017/18 Capital Programme for Harbour Road Car Park Cycleway Scheme.
19. Harbour Road Car Park Cycleway Scheme (Phase 5) - It has been requested that this scheme is increased by £70k for continued footway improvement works as per the Active Travel Plan. This is to be funded from s106 monies.
20. Tackling Poverty - An emergency power was approved on the 24th April 2017 to carry forward £121k relating to the Holton Road Grant Programme into the 2017/18 Capital Programme. The slippage was requested to comply with the match funding requirements of the Welsh Government's Vibrant and Viable Places funding award, to honour an existing funding commitment in respect of grant awarded for works to Holton Road and to match forecast demand in the project pipeline.
21. Dochdwy Road Public Open Space - It has been requested that a new capital scheme for £40k is included in the 2017/18 Capital Programme to improve the park. This is to be funded from s106 monies.
22. Sustainable Transport Improvements Penarth Heights - It has been requested that this scheme is increased by £35k to implement raised speed bumps on Plassey Street. This is to be funded from s106 monies.

Resource Implications (Financial and Employment)

23. As detailed in the body of the report.

Sustainability and Climate Change Implications

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

Legal Implications (to Include Human Rights Implications)

25. There are no legal implications.

Crime and Disorder Implications

26. There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

27. There are no equal opportunity implications.

Corporate/Service Objectives

28. 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

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

Consultation (including Ward Member Consultation)

30. 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

Officers Consulted

Director of Environment and Housing

Responsible Officer:

Miles Punter

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