Item 9 General Services Capital Budgetary Control Report to 31 January 2025 (Period 10)
West Dunbartonshire Council · 26 March 2025
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council: 26 March 2025 _________________________________________________________________ Subject: General Services Capital Budgetary Control Report 2024/25 to 31 January 2025 (Period 10). 1. Purpose 1.1 This report provides an update on the General Services capital financial performance to 31 January 2025. 2. Recommendations 2.1 Members are asked to: a) Note the current position of the 2024/25 General Services capital budget. b) Note the project life total is currently on track. c) Note appendix 2 and 3 which detail the changes between period 7 and 10 including changes agreed at the Council meeting on 5 March 2025. d) Grant delegated authority to Chief Officer for Roads, Neighbourhood and Transport, in consultation with the Procurement Manager, to award contracts in relation to vehicle replacement, using appropriate procurement routes. e) Grant delegated authority to Chief Officer Resources, in consultation with the Procurement Manager, to award any procurement and contract awards for projects related to Building Upgrades recurring budget using appropriate procurement routes. 3. Background 3.1 On 6 March 2024 the Council approved the updated General Services Capital Plan for 2024/2025 to 2032/33. The three years from 2024/25 to 2026/27 were approved in detail with the remaining years being indicative. The budget agreed was £76.757m for 2024/25 and £318.357m for the project life budget. 4. Main Issues 4.1 Exhibit 1 sets out the revised capital budget at period 7 as reported to Council on 18 December 2024. Exhibit 1: Revised Capital Budget as at 18 December 2024. 2024/25 (£m) Project Life (£m) Capital Budget Agreed 6 March 2024 76.757 318.357 Updates reported to Council on 28 August, 30 2.304 1.368 ITEM 9
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October and 18 December 2024. Reprofiling reported to Council on 28 August, 30 October and 18 December 2024. (14.582) 0 Revised Capital Budget at Period 7 64.479 319.725 Updates agreed at Council 18 December 2024. (0.166) (0.166) Reprofiling reported at period 7 (5.914) 0 Revised Capital Budget as at Period 7 58.399 319.559 4.2 Progress against the 2024/25 capital plan is detailed in: Appendix 1 – Project Life Summary by Chief Officer Appendix 2 – Off Track Projects Appendix 3 – Changes to Capital Plan for Noting Appendix 4 – All Approved Projects 4.3 The overall programme summary report at Appendix 1 shows that planned expenditure against the budget is currently on track. 4.4 Exhibit 2 sets out the revised capital budget at period 10 following approval at Council on 5 March 2025 as part of the new capital programme. Exhibit 2: Revised Capital Budget £m £m 2024/2 5 (£m) Project Life (£m) Revised Capital Budget at 18 December 2024 58.399 319.559 Updates agreed as part of Capital Plan 5 March 2025 (see appendix 2). 2.333 2.950 New Funding – Play Parks. 0 0.508 New Funding – Cycling, Walking and Safer Streets. 0 0.387 New Funding – 20mph speed limits. 0.105 0.105 New Funding – Park and Ride. 0.023 0.023 New Project Agreed Council 5 March 2025 – School 20mph speed limits. 0 0.075 Place Based Investment Programme additional drawn down. 0 0.100 Additional Budget for Securing Sites 0.059 0.059 Overspends on completed Projects 0.012 0.012 Reprofiling of Projects reported to Council 5 March (2.525) 0 Revised Capital Budget Period 10 58.406 323.778 Underspends on completed Projects (0.035) (0.035) Revised Proposed Capital Budget Period 10 58.371 323.743 4.5 Appendix 4 shows all projects with approved in year and project life budgets as well as anticipated expenditure. It highlights that the 2024/25 budget is £58.371m. The spend as at period 10 is £34.708m (59.43%) of the current forecast spend of £58.371m. 4.6 The Waste Service have progressed the feasibility and outline design for the Resource, Recovery Recycling Centre (RRRC) following approval to progress
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the project to be sited at Poplar Road. A budget has been allocated for the project (RN22 – Waste Transfer Station) of £1.9m however following best value engineering the estimated delivery cost is currently £3.7m. This is due partly to ground conditions and flood risk implications on the building design as well as inflationary cost of materials. Following project inception the Council has entered into the Cooperation Agreement with Glasgow City Council which provides a level of resilience and infrastructure that the Council previously did not have access to. The service recommends the pausing of this project to allow the monitoring of the implementation of the agreement and to determine whether there is still a requirement for this infrastructure. The £1.821m remaining capital budget for this project has been reprofiled into 2028/29 to allow time for a formal decision to be made on the future of the project. The project budget is £1.980m within the capital budget however the construction costs are expected to be in the region of £3.7m. To date £0.159m has been spent on design, site investigation etc with £1.821m remaining budget. This information is useful should the waste transfer station be considered as a requirement at a future date or the site be utilised for an alternative use. 4.7 Appendix 2 highlights that project RN21 (Overburn Allotment Development) is off track due to a revised completion date as the project design work has been fully developed with the revised cost estimates indicating that a further £0.150m will be required to deliver project. This means there is insufficient budget to deliver the project so it has not been possible to go out to tender. Council are not being asked to approve further capital money at the current time as officers will first explore alternative funding options. If alternative funding is not identified then Council will be provided with an updated position and decision will be required on a funding request or on the deliverability of the project. 4.8 The Council’s Standing Orders have been changed to have contract authorisation submitted to service committees and delegated authority sought to appoint the contractor of the returned tender if the contract cost is within the approved budget and the tender is in line with normal tender parameters. 4.9 The Fleet Service have undertaken a prioritisation exercise to determine the corporate fleet requirements to be delivered through the vehicle replacement budget. To facilitate the purchase of the vehicles approval is sought to undertake the procurement and contract award of the Vehicle Replacement Programme 2025/26 by the Chief Officer – Roads and Neighbourhood in consultation with the Procurement Service and to appoint the contractor of the returned tender if the contract cost being within the approved budget and the tender being in line with normal tender parameters. This request for the authorisation for delegated authority is being made to Council as the project timelines for the contract award being issued are before the next IRED committee in May 2025. 4.10 This report also asks Council to approve any procurement and contract award of projects under the Building Upgrades recurring budget within Corporate Assets to be made by the Chief Officer Resources, in consultation with the Procurement Manager provided the contract costs remain within the approved
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budget and the tenders adhere to standard procurement parameters. This is required due to the time constraints required to deliver spend in each financial year. There is a risk should this not be approved that projects will not be able to be carried out in the financial year which will impact on the condition of our assets. 5. Option Appraisal 5.1 No option appraisal was required for this report. 6. People Implications 6.1 There are no people implications. 7. Financial and Procurement Implications 7.1 The report notes the projected in-year financial position for capital budgets. 8. Risk Analysis 8.1 The main risks are as follows: (a) The reported variances should be viewed in the knowledge that there are a number of variable factors which could arise between now and 31 March which could affect the year end results for capital budgets. (b) As a consequence of current market conditions, inflation is high and interest rates continue to be volatile. To forecast for the full year costs budget assumptions have been required. These assumptions continue to change regularly and therefore it is likely the projected year end budgetary position will change from that reported. 9. Equalities Impact Assessment (EIA) 9.1 No equalities impact assessment was required in relation to this report. 10. Environmental Sustainability 10.1 No assessment of environmental sustainability was required in relation to this report. 11. Consultation 11.1 All services involved in delivering the capital budgets have been consulted in the compilation of this report. 12. Strategic Assessment 12.1 Proper budgetary control and sound financial practice are cornerstones of good governance and support Council and officers to pursue the strategic priorities of the Council’s current Strategic Plan. This report forms part of the financial governance of the Council. ______________ Laurence Slavin Chief Officer – Resources Date: 11 March 2025 Person to Contact: Jackie Thomson
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Council Offices, Church Street, Dumbarton E-mail: jackie.nicolthomson@west-dunbarton.gov.uk Appendices: Appendix 1 – Project Life Summary by Chief Officer Appendix 2 – Off Track Projects Appendix 3 – Changes to Capital Plan for Noting Appendix 4 – All Approved Projects Background Papers: General Services Capital Plan Update - Council 6 March 2024. Capital Budgetary Control Report (P3) – Council 28 August 2024 Capital Budgetary Control Report (P5) – Council 30 October 2024 Capital Budgetary Control Report (P7) – Council 18 December 2024 Wards Affected All Wards