ILE 2023-24 -Revenue and Capital Budget Monitoring Period 8 (revised 18012024)
Renfrewshire Council · 24 January 2024
Back to Infrastructure, Land and Environment Policy Board — 24 January 2024 and its agenda
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To: Infrastructure, Land and Environment Policy Board On: 24 January 2024 Report by: Director of Finance & Resources and Director of Environment, Housing and Infrastructure Heading: Revenue and Capital Budget Monitoring as at 10 November 2023 1. Summary of Financial Position 1.1. The projected Revenue outturn as at 31 March 2024 for Infrastructure, Land and Environment is an overspend position of £3.160m (9.7%) against the revised budget for the year. 1.2. The projected Capital outturn as at 31 March 2024 for Infrastructure, Land and Environment is a break-even position. 1.3. This is summarised over the relevant services in the table below and further analysis is provided in the attached appendices. Table 1: Revenue Division Revised Annual Budget Total Projected Outturn Budget Variance (Adv)/Fav Budget Variance £000 £000 £000 % Environment and Infrastructure 32,485 35,644 (3,160) (9.7%) Table 2: Capital Division Revised Annual Budget £000 Total Projected Outturn £000 Budget Variance (Adv)/Fav £000 Budget Variance % Environment and Infrastructure 17,494 17,494 0 0%
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2. Recommendations It is recommended that the Infrastructure, Land and Environment Policy Board: 2.1 Note the projected Revenue outturn position as detailed in Table 1 above; 2.2 Note the projected Capital outturn position as detailed in Table 2 above; and 2.3 Note the Revenue and Capital budget adjustments detailed in sections 4 and 6. ___________________________________________________________________ 3 Revenue 3.1 The Revenue Budget Monitoring report at Appendix 1 identifies a projected annual overspend of £3.160m (9.7% of total budget) for Infrastructure, Land and Environment. Narrative is provided in the Appendices below to provide context and explanation to the budget position for service areas. 3.2 The projected costs for this financial year are based on the financial information available at the time of writing this report, and future projections and outturns may vary depending on the operational and current market conditions. 3.3 The forecast financial overview for the Council being reported to Finance, Resources and Customer Services Board incorporates the overspend position reflected in this report. 3.4 The main reasons for the projected outturn position are indicated below, with the tables showing both the subjective analysis (what the budget is spent on) and the objective analysis (which division is spending the budget). The main drivers are the loss of parking income, as has been the case since the beginning of the pandemic, refuse collection costs that are largely driven by inflationary pressures, absence cover as a result of annual leave and sick leave, and the impact of other inflationary pressures across the services. 4 Revenue Budget Adjustments 4.1 Since the last report there have been net budget adjustments of £0.195m, reflecting the transfer of funding in relation to additional public holidays in 2023/24, which have resulted in overtime costs being incurred. 5 Capital 5.1 The Capital Investment Programme 2023/24 to 2027/28 was approved by the Council on 2 March 2023. The approved spend for 2023/24 at that time was £16.676m.
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5.2 The Capital Monitoring report at Appendix 2 indicates a revised budget for 2023/24 of £17.494m. 5.3 The projected outturn at 31 March 2024 is a break-even position. 5.4 Further detail, including reasons for significant variances, can be found at Appendix 2. 6 Capital Budget Adjustments 6.1 Since the last report, budget adjustments of (£0.684m) have arisen, which reflect the following changes: o Net budget carried forward from 2023/24 to 2024/25 of (£1.386m) to reflect updated cash flows for the following projects; • Robertson Park Improvements - (£0.028m) • Enhance Council Owned Recreation Areas – (£0.046m) • Gateway Village Traffic Reduction Studies – (£0.035m) • Paisley to Renfrew Active Travel Route – (£0.250m) • Hawkhead Estate to Seedhill Road (Linside) Active Travel Link – (£0.100m) • North Renfrewshire Active Travel Inchinnan Drive to Glasgow Airport- (£0.270m) • Renewal of Play Parks – SG funded – (£0.307m) • Renewal of Play Parks - Council funded – (£0.350m) o Budget Increases in 2023/24 of £0.702m • Community Bus Fund - £0.051m • Strathclyde Partnership Transport - £0.351m • Lawn Tennis Association - £0.300m ___________________________________________________________________ Implications of this report 1. Financial – The projected outturn position for the Infrastructure, Land and Environment Revenue budget is an overspend of £3.160m. The projected outturn position for the Infrastructure, Land and Environment Capital budget is a break-even position.
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2. HR and Organisational Development None directly arising from this report. 3. Community/Council Planning None directly arising from this report. 4. Legal None directly arising from this report. 5. Property/Assets Capital projects result in lifecycle improvements and replacements to the roads and footways network, and vehicles. 6. Information Technology None directly arising from this report. 7. Equality and Human Rights None directly arising from this report. 8. Health and Safety None directly arising from this report. 9. Procurement None directly arising from this report. 10. Risk The potential risk that the Council will overspend its approved budgets for the year will be managed at a Council-wide level by the Chief Executive and Directors. 11. Privacy Impact None directly arising from this report. 12. 13. Cosla Policy Position N/a. Climate Risk None directly arising from this report. __________________________________________________________________ List of Background Papers Revenue Budget and Council 2023/24. Council, 2 March 2023 Non Housing Capital Investment Programme, Prudential Framework and Treasury Management Strategy, and Capital Strategy 2023/24 – 2027/28. Council, 2 March 2023. ___________________________________________________________________ Authors: Alastair MacArthur, Director of Finance & Resources and Gordon McNeil, Director of Environment, Housing & Infrastructure
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Appendix 1 Objective Summary Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 Directorate and Service Co-ordination 1,366 0 1,366 1,342 24 1.8% 112 (88) Refuse Collection 4,810 82 4,892 5,818 (926) (18.9%) (847) (79) Household Waste Recycling Centres 936 12 948 1,122 (175) (18.4%) (91) (84) Refuse Disposal 7,327 0 7,327 7,471 (144) (2.0%) (143) (1) Streetscene 7,215 90 7,305 7,348 (43) (0.6%) (111) 68 Sustainability and Place 432 0 432 473 (41) (9.5%) (74) 33 Fleet Services (77) 11 (67) 219 (286) (429.3%) (313) 28 Social Transport 1,596 0 1,596 1,568 28 1.8% 41 (13) Roads Operations 3,065 0 3,065 3,138 (73) (2.4%) 26 (99) Infrastructure and Assets 1,734 0 1,734 1,941 (207) (11.9%) (246) 39 Transportation & Development 1,037 0 1,037 1,073 (36) (3.5%) (76) 40 Parking of Vehicles (1,181) 0 (1,181) (53) (1,128) (95.5%) (908) (220) Street Lighting Maintenance Work 382 0 382 536 (154) (40.3%) (140) (14) Energy Management Unit 410 0 410 410 0 0.0% 0 0 Strathclyde Partnership for Transport Requisition 3,238 0 3,238 3,238 0 0.0% 0 0 NET EXPENDITURE 32,290 195 32,485 35,644 (3,160) (9.7%) (2,770) (390) RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 10 November 2023 Budget Variance (Adverse) or Favourable POLICY BOARD : INFRASTRUCTURE, LAND AND ENVIRONMENT
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Appendix 1 Objective Heading Waste Services Fleet Services Infrastructure and Assets Parking of Vehicles Street Lighting Maintenance Work As previously reported, the current projected overspend is as a result reduced construction consent income being offset by a projected over recovery in sales, fees and charges. Due to the income generated in sales, fees and charges being of a reactive nature, this is an area that is difficult to predict, however this position will be closely monitored for the remainder of the financial year with the finance team. An overspend is projected for this service, which is predominantly on the repairs and maintenance of lighting columns, due to the increased cost of materials. This will be closely monitored throughout the remainder of the financial year with mitigating actions by management where required. On and off street parking income and fine recovery remain significantly lower than pre-pandemic levels It should be noted that the position will be closely monitored throughout the year, with an expected drawdown from ringfenced reserves being actioned if required at the end of the financial year to cover any shortfall that may result during 2023/24. Key Reasons for Projected Variance This reflects the financial position for Refuse Collection, Refuse Disposal and Household Waste Recycling Centres. As reported previously, the overspend in the main, relates to the increased costs relating to overtime due to driver training, absence, additional leave and bins, caddies and bin liner supplies. Both Streetscene and Waste Services have experienced high levels of overtime. In addition, there has been a reduction in demand for special uplifts. The current projected overspend within Fleet Services, in the main reflects the impact inflationary impact on contractor, material and tyre costs. In addition, grant funding for the sustainable pool fleet has come to an end, with costs being borne by the service. This contributes £111k to the projected overspend.
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Appendix 2 Subjective Summary Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 23,744 200 23,944 25,433 (1,490) (6.2%) (1,150) (340) Premises Related 1,226 0 1,226 1,468 (242) (19.7%) (127) (115) Transport Related 5,998 0 5,998 6,425 (427) (7.1%) (399) (28) Supplies and Services 13,137 1 13,138 14,864 (1,726) (13.1%) (1,094) (632) Third Party Payments 3,271 0 3,271 3,258 13 0.4% 12 1 Transfer Payments 114 0 114 170 (56) (49.1%) (39) (17) Support Services 35 0 35 50 (15) (42.9%) (11) (4) Depreciation and Impairment Losses 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 47,525 201 47,726 51,668 (3,943) (8.3%) (2,808) (1,135) Income (15,235) (6) (15,241) (16,024) 783 5.1% 38 745 NET EXPENDITURE 32,290 195 32,485 35,644 (3,160) (9.7%) (2,770) (390) Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 10 November 2023 POLICY BOARD : INFRASTRUCTURE, LAND AND ENVIRONMENT
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Appendix 2 Prior Years Budget Budget Revised Projected Expenditure at P6 Adjustments Budget Outturn Total Approved Projected to 31/03/2023 2023-24 0 2023-24 2023-24 Budget Outurn Project Title to 31-Mar-27 to 31-Mar-27 £000 £000 £000 £000 £000 £000 £000 ENVIRONMENT & INFRASTRUCTURE Cycling, Walking & Safer Routes 0 1,149 0 1,149 1,149 0 0% 786 786 0 0% Roads/Footways Upgrade Programme 73,464 7,522 0 7,522 7,522 0 0% 81,785 81,785 0 0% Vehicle Replacement Programme 0 2,156 0 2,156 2,156 0 0% 2,359 2,359 0 0% Paisley to Renfrew Active Travel Route 0 500 (250) 250 250 0 0% 500 500 0 0% Hawkhead Estate to Seedhill Road(Linside) Active Travel L 0 200 (100) 100 100 0 0% 200 200 0 0% North Renfrewshire Active Travel Inchinnan Drive to Glasgo 0 540 (270) 270 270 0 0% 540 540 0 0% Bridge Assessment/Strengthening 0 547 0 547 547 0 0% 547 547 0 0% Lighting Columns Replacement 0 1,065 0 1,065 1,065 0 0% 1,065 1,065 0 0% Traffic Management 0 361 0 361 361 0 0% 361 361 0 0% Core pathways & cycle network 85 115 0 115 115 0 0% 200 200 0 0% Parks Improvement Programme 1,139 65 (28) 37 37 0 0% 1,204 1,204 0 0% Improvements to Outdoor Access and Play Area Programm 1,553 321 (82) 239 239 0 0% 1,873 1,873 0 0% Multi Pupose Bins 60 20 0 20 20 0 0% 80 80 0 0% Public Litter Bin Replacement Programme 0 90 0 90 90 0 0% 90 90 0 0% Improvements to Cemetery Estate 1,238 303 0 303 303 0 0% 1,541 1,541 0 0% Renewal of Play Parks 158 657 (657) 0 0 0 0% 1,694 1,694 0 0% Parks - Multi Use Games Area 0 100 0 100 100 0 0% 100 100 0 0% Nature Restoration Fund 191 350 0 350 350 0 0% 541 541 0 0% Nature Restoration Fund (Biodiversity) 0 267 0 267 267 0 0% 267 267 0 0% Road Safety 0 257 0 257 257 0 0% 257 257 0 0% Direct Resource Grant (Feasability) 0 30 0 30 30 0 0% 30 30 0 0% EV Infrastructure Fund 0 80 0 80 80 0 0% 80 80 0 0% Community Bus Fund 0 0 51 51 51 0 0% 51 51 0 0% Lawn Tennis Association 0 0 300 300 300 0 0% 300 300 0 0% Strathclyde Partnership Transport 0 1,485 351 1,836 1,836 0 0% 1,836 1,836 0 0% 1 -1 -1 TOTAL INFRASTRUCTURE, LAND & ENVIRONMENT BOARD 77,888 18,180 (684) 17,494 17,494 0 0% 98,287 98,287 0 0% *Rolling programmes have a prior year year expenditure of £0 as the expenditure is not directly linked from one year to the next as a singular project. RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES 1st April to 10th November 2023 POLICY BOARD: INFRASTRUCURE, LAND & ENVIRONMENT Current Year 2023-24 Full Programme - All years Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable