ILE Budget Monitoring Report at Period 6
Renfrewshire Council · 9 November 2022
Back to Infrastructure, Land and Environment Policy Board — 9 November 2022 and its agenda
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To: Infrastructure, Land and Environment Policy Board On: 9 November 2022 Report by: Director of Finance & Resources and Director of Environment & Infrastructure Heading: Revenue and Capital Budget Monitoring as at 16 September 2022 1. Summary of Financial Position 1.1. The projected Revenue outturn as at 31 March 2023 for Infrastructure, Land and Environment is an overspend position of £1.696m (5.5%) against the revised budget for the year. 1.2. The projected Capital outturn as at 31 March 2023 for Infrastructure, Land and Environment is a breakeven position for the year. 1.3. This is summarised over the relevant services in the table below and further analysis is provided in the Appendices. Table 1: Revenue Division Revised Annual Budget Projected Outturn Budget Variance (Adv)/Fav Budget Variance £000 £000 £000 % Environment & Infrastructure 30,841 32,537 (1,696) -5.5% Table 1: Capital Division Revised Annual Budget Projected Outturn Budget Variance (Adv)/Fav Budget Variance £000 £000 £000 % Environment & Infrastructure 21,579 21,579 0 0.0%
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2. Recommendations Members are requested to: 2.1. Note the projected Revenue outturn position as detailed in Table 1 above, considering that the forecast position is based on best estimates at this time; 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 £1.696m (5.5% 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 and the refuse collection costs that are largely driven by inflationary costs and absence cover as a result of annual leave being carried forward from during the pandemic. The position also includes and an anticipated increase in energy costs. 4. Revenue Budget Adjustments 4.1. Budget adjustments totalled £1.531m which in the main related to Regulatory Services, which previously reported to this board and now reports to Communities and Housing Policy. The total budget is adjusted by £1.775m to reflect this transfer.
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5. Capital 5.1. The Capital Investment Programme 2022/23 to 2026/27 was approved by the Council on 3 March 2022. 5.2. The Capital Monitoring report at Appendix 2 indicates adjustments in the approved capital programme of £3.896m, of which £0.306m have occurred since the last board report at Period 3. This reflects new grant funding awarded in 2022/23. 5.3. The projected outturn at 31 March 2023 is a breakeven position. Further detail, including reasons for significant variances, can be found at Appendix 2. 6. Capital Budget Adjustments 6.1. Since the last report, budget changes of £0.306m have arisen which reflect the following: Budget Increases in 2022/23 (£0.306m) for grant awarded in the following projects: • Cycle Walking Safer Routes (£0.064m); • Vehicle replacement Programme (£0.083m) for Transport Scotland grant for electric vehicle charging infrastructure; • Renewal of Playparks (£0.155m), a further £1.536m has been awarded to Renfrewshire Council over the 3 year period 2023-24 to 2025-26. Implications of this report 1. Financial – The projected budget outturn position for Infrastructure, Land and Environment Revenue budget is an overspend of £1.696m. The projected outturn position for Infrastructure, Land and Environment Services’ Capital budget is breakeven position. The Capital programme will continue to be monitored closely for the rest of the financial year. 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 Roads & footways network and vehicles. 6. Information Technology None directly arising from this report.
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7. Equality and Human Rights The recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report because for example it is for noting only. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 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 Tax Policy Board report, Council 3 March 2022 Capital Investment Programme 2022/23 to 2026/27, Council 3 March 2022. ___________________________________________________________________ Authors: Director of Finance & Resources and Director of Environment & Infrastructure
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Appendix 1 Objective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Directorate and Service Co-ordination 1,244 6 1,250 1,126 124 10.0% 0 124 Refuse Collection 5,233 159 5,392 6,968 (1,576) (29.2%) (1,399) (177) Household Waste Recycling Centres 766 2 768 841 (73) (9.5%) (126) 53 Refuse Disposal 7,602 0 7,602 6,923 679 8.9% 152 527 Streetscene 6,039 163 6,202 6,270 (68) (1.1%) (31) (37) Sustainability and Place 602 4 606 547 59 9.8% 29 30 Fleet Services (177) 5 (172) (257) 85 49.4% (18) 103 Social Transport 1,719 (132) 1,587 1,407 180 11.4% 120 60 Roads Operations 2,651 235 2,886 2,856 30 1.1% (101) 131 Infrastructure and Assets 1,887 (197) 1,690 1,731 (41) (2.4%) 23 (64) Transportation & Development 994 (2) 992 1,011 (19) (1.9%) 0 (19) Parking of Vehicles (1,131) 1 (1,130) (52) (1,078) (95.4%) (999) (79) Strathclyde Partnership for Transport Requisition 3,168 0 3,168 3,168 0 0.0% 0 0 Regulatory Services 1,775 (1,775) 0 0 0 0.0% 0 0 NET EXPENDITURE 32,372 (1,531) 30,841 32,537 (1,696) (5.5%) (2,350) 653 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 16 September 2022 Budget Variance (Adverse) or Favourable POLICY BOARD : INFRASTRUCTURE, LAND AND ENVIRONMENT
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Appendix 1 Objective Heading Refuse Collection Household Waste Recycling Centres Refuse Disposal Streetscene Social Transport Parking of Vehicles In the main, the overspend is in relation to transport related costs as a result of increased fuel prices and external vehicle hires. The current projected position relates to reduced levels of waste being disposed of and are expected to continue for the remainder of the financial year resulting in an underspend on the Clyde Valley Waste contact. In addition, income is expected to over recover this financial year due to income for mixed plastics, cans and glass now expected this financial year. However, this will be closely monitored through the year. Due to a reduction in social transport requirements, it is expected that the service will underspend this financial year. However, it should be noted that this will monitored throughout the financial year and any changes will be reported to future boards. Off-street parking charges have been reintroduced for a number of months, however on and off street parking income and fine recovery remain significantly lower than pre-pandemic levels and this Is expected to remain until the end of the current financial year. The over spend in the main relates to increased costs relating to fuel cost increases. There is also an expected overspend on the supply of household bins which is partly due to increased prices and reduced demand in special uplift income. In addition, due to high levels annual of leave carried forward as a result of the pandemic, additional overtime is being incurred in order to cover this from an operational perspective. Key Reasons for Projected Variance The current projected overspend within Streetscene in the main relates to the tree management and the associated health and safety issues such as tree inspections and monitoring tree health. As a result, the Council is incurring increased inspection and monitoring costs in dealing with tree health issues such as Ash Dieback. This will be closely monitored throught the remainder of the financial year.
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Appendix 1 Subjective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 23,079 (1,436) 21,643 22,298 (654) (3.0%) (406) (250) Premises Related 1,089 (36) 1,053 1,466 (413) (39.2%) (101) (312) Transport Related 6,040 (1) 6,039 7,169 (1,130) (18.7%) (1,085) (45) Supplies and Services 12,356 52 12,408 12,543 (135) (1.1%) (514) 379 Third Party Payments 3,197 (1) 3,196 3,209 (13) (0.4%) (1) (12) Transfer Payments 111 (7) 104 151 (47) (45.2%) (15) (32) Support Services 39 (5) 34 7 27 79.4% (5) 32 Depreciation and Impairment Losses 0 (300) (300) 0 (300) (100.0%) 0 (300) GROSS EXPENDITURE 45,911 (1,734) 44,177 46,842 (2,665) (6.0%) (2,127) (540) Income (13,539) 203 (13,336) (14,305) 969 7.3% (223) 1,192 NET EXPENDITURE 32,372 (1,531) 30,841 32,537 (1,696) (5.5%) (2,350) 653 Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 16 September 2022 POLICY BOARD : INFRASTRUCTURE, LAND AND ENVIRONMENT
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Appendix 2 Prior Years Approved Budget Revised Projected Expenditure Budget Adjustments Budget Outturn Total Approved Projected to 31/03/2022* 2022-23 in 2022-23 2022-23 2022-23 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 0 785 432 1,217 1,217 0 0% 1,467 1,467 0 0% Roads/Footways Upgrade Programme 15,584 11,068 (28) 11,040 11,040 0 0% 39,180 39,180 0 0% Safe Road Crossing 59 0 191 191 191 0 0% 250 250 0 0% Vehicle Replacement Programme 0 2,257 236 2,493 2,493 0 0% 2,492 2,492 0 0% Bridge Assessment/Strengthening 0 481 38 519 319 200 39% 520 320 200 38% Lighting Columns Replacement 0 560 404 964 964 0 0% 964 964 0 0% Traffic Management 0 100 83 183 183 0 0% 183 183 0 0% Core pathways & cycle network 62 138 0 138 138 0 0% 200 200 0 0% Parks Improvement Programme 2,142 63 97 160 160 0 0% 2,302 2,302 0 0% Improvements to Outdoor Access and Play Area Programme 264 1,100 355 1,455 1,455 0 0% 1,718 1,718 0 0% Multi Pupose Bins 60 20 0 20 20 0 0% 80 80 0 0% Improvements to Cemetery Estate 1,220 141 179 320 320 0 0% 1,541 1,541 0 0% Underwood Depot - Workshop Improvements 320 0 2 2 2 0 0% 322 322 0 0% Clyde Mission Fund - Renfrew Riverside to Paisley TC Active Travel Route 33 970 32 1,002 1,202 (200) -20% 1,035 1,235 -200 -19% Renewal of Play Parks 0 0 313 313 313 0 0% 1,849 1,849 0 0% Nature Restoration Fund 1 0 156 156 156 0 0% 157 157 0 0% Recycle Improvement Fund 0 0 346 346 346 0 0% 346 346 0 0% Strathclyde Partnership Transport 0 0 1,060 1,060 1,060 0 0% 1,060 1,060 0 0% TOTAL INFRASTRUCTURE, LAND & ENVIRONMENT BOARD 19,745 17,683 3,896 21,579 21,579 0 0% 55,666 55,666 0 0% RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES 1st April to 16th September 2022 POLICY BOARD: INFRASTRUCURE, LAND & ENVIRONMENT Current Year 2022-23 Full Programme - All years Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable