Agenda Item No. 8

The Vale of Glamorgan Council

Environment and Regeneration Scrutiny Committee: 12th July 2018

Report of the Director of Environment and Housing

Revenue and Capital Monitoring for the period 1st April to 31st May 2018

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 2018 regarding those revenue and capital budgets, which form this Committee's remit.

Recommendation

It is recommended that :-

1. Scrutiny Committee consider the position with regard to the 2018/19 revenue and capital monitoring.

Reason for the Recommendation

1. That Members are aware of the position with regard to the 2018/19 revenue and capital monitoring relevant to this Scrutiny Committee. 

Background

2. On 28th February 2018, Council approved the Revenue and Capital budgets for 2018/19 (minute nos. 746 and 745 respectively).  Reports monitoring expenditure are brought to this Committee on a regular basis.

Relevant Issues and Options

Revenue

3. It is early in the financial year and the forecast is for an outturn within target, however, services are anticipating using reserves and may have difficulty in achieving the savings target in full.
4. The Revenue Budget shown in the table below now includes the allocation of the Reshaping Tranche 3 Establishment Review saving to services which was previously held centrally as part of the Final Revenue Budget Proposals 2018/19

5. Neighbourhood & Transport Services - This service is currently projected to outturn on budget, however, there are some areas of concern to highlight and reserves will be utilised.
6. Within the Waste Collection service there is still pressure on employee and transport budgets due to downtime involved in travelling to Cardiff to dispose waste. £200k has again been set aside within the Neighbourhood Services Reserve for this reason. Due to changes within the recycling market and China's decision to reject elements of mixed recycling there is also a pressure within the Recycling Treatment budget. Again funding has been set aside in reserves for 2018/19 to cover this pressure however this is only a one-off funding stream and there will be a cost pressure on the budget in 2019/20 of approximately £430k.
7. The Reshaping savings target for Neighbourhood Services for 2018/19 is £775k.   £375k of this saving relates to the remaining balance to be found from the recent restructure within Neighbourhood Services. The restructure has been effective from 1st April 2018 however due to the timescales and notice periods required, some staff currently remain in post.   This may have some effect on the level of savings achievable. Plans for the remainder of the savings are currently being developed.
8. Regeneration - This budget covers the Countryside, Economic Development and Tourism & Events functions. Although the forecast is again shown as a balanced budget, there remains concern over the income targets for car parking charges and commercial opportunities within the Countryside Division, where historic savings targets are unlikely to be achieved this year. Efforts will however be made to maintain a balanced budget by year-end, but the situation will need to be monitored.
9. Development Management - As it is very early in the financial year, the forecast is shown as a balanced budget. However, the planning fees budget will be monitored closely given planning application fee income has fallen short of the target in recent years. The Section will continue to pursue the use of Planning Performance Agreements and other income generation such as pre planning application advice to help support this regulatory process.

2018/19 Savings Targets

10. As part of the Final Revenue Budget Proposals for 2018/19, a savings target of £6.298m was set for the Authority.  Attached at Appendix 1 is a statement detailing all savings targets relating to this Committee.  Some services are in the process of finalising options prior to full implementation and some savings may not be achieved in full by year end.  Updates on progress will be provided to Members during the year.

Capital

11. Appendix 2 details financial progress on the Capital Programme as at 31st May 2018. 
12. Members should be aware that Appendix 2 includes requests for unspent committed expenditure to be slipped from the 2017/18 Capital Programme into 2018/19 as approved by Emergency Powers on 12th June 2018.
13. Improve Pedestrian / Public Transport / Cycle / Vehicular movements to Barry Island - A delegated authority request has been approved to increase the Capital Programme by £80k (£2k in 2017/18 and £78k in 2018/19) to implement the above scheme.  This scheme will be funded from s106 monies.
14. Additional Highways Resurfacing & Maintenance Works - Both this budget and the Visible Services Highway Improvements budget are used to fund the Highway resurfacing 3 year plan.  It has been requested that this budget is amalgamated with the Visible Services Highway Improvements budget.
15. Capital Bid - Resurfacing - Both this budget and the Visible Services Highway Improvements budget are used to fund the Highway resurfacing 3 year plan.  It has been requested that this budget is amalgamated with the Visible Services Highway Improvements budget.
16. An Emergency Powers was approved on the 27th April 2018 to include the following schemes into the 2018/19 Capital Programme to be funded from Welsh Government grant and s106 monies:-

• Active Travel £214k (Welsh Government grant)
• Cardiff/Vale of Glamorgan Coastal Sustainable Transport Corridors £600k (Welsh Government grant)
• A48 Strategic Corridor and Other Primary Bus Stops £175k (£145k Welsh Government grant, £30k s106 monies).

17. Flood Risk Management - The Council has received an award of funding from Welsh Government in relation to the Small Scale Works Grant 2018/19.  The grant amount is £82,875 and requires 15% (£14,625) match funding from the Council which will be funded from the existing Flood Risk Management budget.  The total cost of the works is £97,500.  The works include Llandaff Close flood risk management scheme, Llanmaes Village property level protection and Picton Road flood risk management scheme.  It has been requested that there is an increase in the 2018/19 Capital Programme by £82,875 to be funded by Welsh Government grant.
18. Coastal Access Improvement Programme - The Council have been awarded a grant from Natural Resources Wales.  The grant represents a maximum contribution of £30,050 against eligible costs of £36,566.  The funding is made up of £10,500 of grant with no match funding requirement and a further £19,550 of grant at 75% of cost, requiring £6,516 of match funding (25%).  The matchfunding will be provided by a revenue contribution to capital from the Countryside budget.  It has been  requested that £36,566 is included in the 2018/19 Capital Programme.
19. Skills Centre Property Conversion - The heating system in this building has failed and in order to complete the scheme and let the remaining units, corrective works are required.  It has been estimated that this will cost approximately £30k.  It has been requested that the Capital Programme is increased by £30k to be funded from the Capital Scheme Commitments reserve.
20. Dochdwy Road Public Open Space - It has been requested that this budget is increased by £2k to be funded from s106 monies and which will be for access works into the park.
21. Land at Innovation Quarter - An Emergency Power was approved on 3rd May 2018 to include this scheme within the 2018/19 Capital Programme to facilitate payment of the sum of £92k to Welsh Government for 0.5 Hectare of IQ land for the Waterfront school utilising capital receipts.

Resource Implications (Financial and Employment)

22. As detailed in the body of the report.

Sustainability and Climate Change Implications

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

Legal Implications (to Include Human Rights Implications)

24. There are no legal implications.

Crime and Disorder Implications

25. There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

26. There are no equal opportunity implications.

Corporate/Service Objectives

27. 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

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

Consultation (including Ward Member Consultation)

29. 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