Agenda Item No. 5
The Vale of Glamorgan Council
Environment and Regeneration Scrutiny Committee: 12th October 2017
Report of the Director of Environment and Housing
Revenue and Capital Monitoring for the period 1st April to 31st August 2017
Purpose of the Report
- 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 August 2017 regarding those revenue and capital budgets, which form this Committee's remit.
Recommendation
It is recommended that :-
- Scrutiny Committee consider the position with regard to the 2017/18 revenue and capital monitoring.
Reason for the Recommendation
That Members are aware of the position with regard to the 2017/18 revenue and capital monitoring relevant to this Scrutiny Committee.
Background
- 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
- The Revenue Budget and projected outturn for 2017/18 are shown in the table below. It is currently projected that services under this Committee will outturn within target at year end however expenditure will in part be funded by reserves.
|
Environment & Regeneration
|
Revenue Budget
|
Probable Outturn
|
Variance
(+ ) Favourable
(-) Adverse
|
| |
£000
|
£000
|
£000
|
|
Highways & Engineering
|
8,325
|
8,325
|
0
|
|
Waste Management
|
7,591
|
7,591
|
0
|
|
Transportation
|
4,841
|
4,841
|
0
|
|
Visible Services Reshaping Saving
|
(535)
|
(535)
|
0
|
|
Regeneration
|
2,091
|
2,091
|
0
|
|
Development Management
|
968
|
968
|
0
|
|
Total Environment & Regeneration
|
23,281
|
23,281
|
0
|
| |
|
|
|
- A graph and table setting out the variance between profiled budget and actual expenditure to date is attached at Appendix 1.
- Highways & Engineering - There is currently a £129k 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 on a temporary basis by Agency staff therefore it is currently projected that the budget will outturn on target.
- Waste Management - There is currently an adverse variance of £132k 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 make 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 has been set aside in the Visible Services Reserve, from the underspend in 2016/17, to offset any pressures in 2017/18 within Waste Management. It is currently anticipated that the budget will outturn on target.
- Transportation - There is currently a favourable variance of £16k 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. At this stage of the year it is currently anticipated that this service will outturn within budget.
- 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 Visible Services. Staff consultation ended on 31st July 2017 and a number of changes are currently being considered as a result of the consultation. It is anticipated that the structure will start to be populated from late October 2017. It is envisaged that the shortfall in savings for 2017/18 will be met from the Visible Services Reserve.
- Regeneration - This budget covers the Countryside, Economic Development and Tourism & Events functions. There is currently a favourable variance of £23k against the profiled budget for August, due mostly to staff vacancy savings whilst re-appointments are being made. Income due to be generated from commercial opportunities at Country Parks and car parking at Cosmeston have not yet been implemented. All non-urgent repair works at our Countryside sites are on hold as a consequence in order to achieve a balanced budget at year-end.
- Development Management - There is currently a favourable variance against the profiled budget for August, due mainly to higher than anticipated building regulation and planning fees to date. It is anticipated that the position will level off going into the winter period so at this time it is forecast that this service will outturn on target.
2017/18 Savings Targets
- Attached at Appendix 2 is a list of savings to be achieved this year for this Committee. It is anticipated that there will be shortfall against the target of £584k.
- Each savings target has been given a RAG status. Green indicates that it is anticipated that the target will be achieved in full within the year, amber indicates that it is considered that the saving in the year will be within 20% of the target and red indicates that the saving to be achieved in year will be less than 80% of the target.
- It is anticipated that the £244k Transport Review saving for Visible Services will not be achieved this year. As detailed earlier in this report, funding has been ringfenced in the Visible Service Fund to cover part of the projected shortfall for this year. Part of this saving will be achieved when the Waste Transfer Station is established however other means of achieving any shortfall will need to be identified within the Reshaping Services programme.
- Visible Services also has a savings target of £525k under the current Reshaping Services programme which will be achieved by the introduction of a new target operating model. As stated earlier in the report it is anticipated that the structure will start to be populated from late October 2017. It is envisaged that the shortfall in savings for 2017/18 of £300k will be met from the Visible Services Reserve however it is anticipated that the savings target will be achieved in full in 2018/19.
Capital
- Appendix 3 details financial progress on the Capital Programme as at 31st August 2017.
- Flood Risk Management - An emergency power was approved to increase this budget by £105k to be funded by a grant from Welsh Government. The grant is a Small Scale Works Grant and requires match funding of £18,547 which is already included in the Flood Risk Management budget. The works consist of three small scale flood alleviation schemes; Elfed Avenue - Culvert Relining, PLP Llanmaes and Windsor Road - Penarth.
- Collaborative Change Programme Grant - A grant award of £75k has been approved by Welsh Government for the purchase of new technologies to increase performance and reduce fuel use and the carbon footprint. It has been requested that the 2017/18 Capital Programme is increased by £75k.
- Barry Regeneration Partnership Project Fund - A delegated authority has been approved to vire £73k from this scheme to:-
Holton Road Grant Programme £32k - to match forecast demand in the project pipeline for the year 17/18
Cemetery Approach £7k - Technical salaries
Colcot 3G Pitches £5k - Technical salaries
Harbour Road Car Park Cycleway Scheme (Phase 5) £2k - Technical salaries
Barry Island Western Shelter Lighting £2k - Technical salaries
Barry Town Centre Gateway Regeneration £25k - Technical salaries.
The delegated authority also approves £19k from this scheme to be classified as revenue, this is made up of £14k for Project Management Unit and £5k for Holton Road Street Furniture Upgrade.
- High Street/Broad Street Traffic Management - An emergency power was approved to increase this budget by £60k to be funded from s106 monies. In July relevant Cabinet Members and Local Ward Members approved the use of £60k (recently received Section 106 sustainable transport contribution 2009/00946/OUT Barry Waterfront) to supplement the works being undertaken in the project area, such as improvements to pavements.
- Rights of Way Improvement Plan (ROWIP) Grant - An emergency power was approved to include £30k in the 2017/18 Capital Programme, to be funded by a grant from Natural Resources Wales. Projects are based on actions contained within the ROWIP and are listed within the emergency power.
- Coastal Access Improvement Programme (CAIP) - An emergency power was approved to include £80k in the 2017/18 Capital Programme, to be funded by £69k grant from Natural Resources Wales and £11k match funding from the Countryside revenue budget. The CAIP is a scheme to increase public access to the coast of Wales for visitors and local people. Projects are listed within the emergency power.
- Vale Enterprise Centre (VEC) - It has been requested that this scheme is increased by £26k for additional external works at the VEC and which would predominantly cover new upvc windows. This is to be funded from the Regeneration Reserve.
- Llandough Cycle Stands - It has been requested that a new capital scheme totalling £20k is included in the 2017/18 capital programme, funded from s106 monies.
- Causeway Improvement Scheme - The retention for this scheme is now due for payment and it has been requested that a budget of £18k be included in the 2017/18 Capital Programme to be funded from the Visible Services Reserve.
- North Penarth Open Space Improvements - It has been requested that this budget is increased by £483k to be funded from s106 monies. The Council undertook an extensive consultation in the summer of 2016 regarding the 4 parks in the vicinity of Penarth Heights: Plassey Square, Paget Road, The Dingle and Cogan Skate Park. Planting at Plassey Square will be undertaken in autumn 2017. Preliminary design and feasibility works have been undertaken for the proposed new play area and replacement Multi Use Games at Paget Road, it is anticipated that this scheme will be implemented before the end of the financial year. Further, plans are also progressing at The Dingle, in partnership with the Council's Highways Engineers who are reviewing the Windsor Road/Plassey Street Junction. The Council intends to carry out further consultation with the users of Cogan Skate Park, towards the end of this financial year and beginning of next.
- Ffordd Y Mileniwm Footway/Cycle Link - It has been requested that a new capital scheme totalling £20k is included in the 2017/18 Capital Programme, funded from s106 monies. This is to implement the footway/cycle link along Ffordd Y Mileniwm to the train station, so that the route complies with Active Travel.
- Barry Regeneration Partnership - Within this scheme there is a budget of £41k for Fforest Community Park, which due to additional ground works requires an increase in budget of £4k. Within the Parks and Grounds Maintenance asset renewal budget, £50k has been allocated for the installation and upgrading of new play areas, quotations for this work have been returned and are less than originally anticipated. It has been requested to vire £4k from Parks and Grounds Maintenance asset renewal to Barry Regeneration Partnership.
- Dinas Powys Sustainable Transport Improvements - It has been requested that a new capital scheme totalling £70k is included in the 2017/18 Capital Programme, funded from s106 monies. This is to implement walking and cycling improvements in the village centre.
- St. Athan Sustainable Transport Improvements - It has been requested that a new capital scheme totalling £152k is included in the 2017/18 Capital Programme, funded from s106 monies. This is to implement walking and cycling improvements in the village centre.
- Badgers Brook Public Open Space Enhancement - It has been requested that a new capital scheme totalling £50k is included in the 2017/18 Capital Programme, funded from s106 monies. This is to upgrade the existing playground.
- Fferm Goch Sustainable Transport Improvements - It has been requested that a new capital scheme totalling £70k is included in the 2017/18 Capital Programme, funded from s106 monies. This is to implement walking, cycling and bus improvements.
Resource Implications (Financial and Employment)
- As detailed in the body of the report.
Sustainability and Climate Change Implications
- There are no direct implications arising from this report.
Legal Implications (to Include Human Rights Implications)
- There are no legal implications.
Crime and Disorder Implications
- There are no crime and disorder implications.
Equal Opportunities Implications (to include Welsh Language issues)
- There are no equal opportunity implications.
Corporate/Service Objectives
- 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
- The report is in accordance with the Policy Framework and Budget.
Consultation (including Ward Member Consultation)
- 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, Director of Environment and Housing