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O It Is Recommended That the Executive Cabinet Member: O Note The

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O It Is Recommended That the Executive Cabinet Member: O Note The Report to: Executive Cabinet Member – Environmental Services Delivery Consultation th with other Date of meeting: 14 September 2020 officers Fina Ye Jan Report of: Director of Place, Director of Corporate Report ECMESD/859 nce s et Resources number: Poll Contact officer: Janet Pollard , Head of Strategic Finance Telephone 01204 336710 ard number Lega No Report title: Directorate of Place – Finance Report 2020/21 – Quarter One l HR No Not confidential Equ No This report does not contain information which warrants its consideration in the absence of the press ality or members of the public. Impa ct Purpose: This report provides the Executive Cabinet Member with information Asse ssm relating to the financial quarter one projected outturn position of the ent Directorate of Place. requi Recommendations: o It is recommended that the Executive Cabinet Member: red? (a) P No o Note the quarter one financial position of the re Directorate of Place. - o Approve revisions made to the capital programme c No which fall under their portfolio. o o Authorise the Director of Place to call off under any n available framework(s) to enable the capital s programme to progress. ul o Note the key findings in the report. ta o Approve the £1.177m savings identified in appendix ti E o o Approve the deletion of vacant posts identified in n appendix F re p or ts Decision: Is there a need to Background consult on documents: the proposals Signed: ? Leader/Executive Cabinet Member Monitoring Officer (b) P Date: o st c o n s ul ta ti o 1 n re p or ts Please confirm that the consultati on response has been taken into considerat ion in making the recomme ndations. Visi 1. on Start outc Well ome 2. s Live Well Plea 3. se Age ident Well ify 4. X the Prosp appr erous opria te 5. Visio Clean n and outc Gree ome n (s) 6. that Stron this g and repo Distin rt ctive relat es or contr ibute s to by putti ng a cros s in the relev ant box. 2 Summary: This report outlines the financial quarter one position in respect of the Directorate of Place and identifies £1.177m of savings seeking approval. Key Issues Revenue Expenditure: Revenue expenditure as at quarter one for the Directorate of Place showed a projected overspend against budget of £459k after planned reserve movements. There are three significant variances within the Directorate of Place as described in the report, Highways, Planning and CPS. Capital Expenditure: Capital expenditure for the Directorate of Place as at quarter one was £7.1M against a revised budget at quarter one of £84.1m. Reserves: Directorate of Place has fully used all general reserves in year and holds a projected balance of £5.877m earmarked reserves. Efficiency targets: The budgeted efficiency savings for 2019/21 for the Directorate of Place are £5.7m. A review of the savings programme has taken place. Appendix E contains £1.177m of savings seeking approval in this report. Risk: Specific areas of financial risk identified for the year related to loss of income due to the economic downturn, energy prices for street lighting, the cost of the work being identified through property condition survey’s and the financial impact of Covid19. 3 1 Introduction This report provides the Executive Cabinet Member with the quarter one projected outturn position relating to the Directorate of Place. The information is divided into five elements. Revenue expenditure Capital expenditure Reserve movements Efficiency targets Areas of financial risk 2 Revenue expenditure 2.1 Revenue budget The approved revenue budget for the Directorate of Place is £33.103m Table One: Directorate of Place Approved Revenue Budget - 2020/21 Quarter 1 Total £'000 Original Approved Budget 2020 / 21 36,105 Less Recharges 2020 / 21 408 Original Manager's Controllable Budget 2020 / 21 35,697 Virements in Year : Xmas trees and display budget transferred to Corporate Resources -18 AD post transferred to Corporate Resources -112 Adjusted Manager's Controllable Budget 2020 / 21 35,567 Add Adjusted Recharges 2020 / 21 408 Adjusted Budget as at June 2020 35,975 2.2 In year budget adjustments There has been one budget adjustment made during quarter one: Transfer of xmas tree and display budget to Corporate Resources Assistant Director Post transferred to Corporate Resources 4 2.3 Financial Position The final outturn position for the Directorate of Place is projected to be an overspend of £459,000 to be met from reserves. Table Two below outlines the financial position of the Directorate of Place after movements to reserves, as at 30th June 2020. Table Two – Directorate of Place Financial Position – 2020/21 Quarter One Net Projected Year End Portfolio Budget Outturn Variance £’000 £’000 £’000 Executive Cabinet Member - The Leader 210 218 8 Executive Cabinet Member - Deputy Leader 11,522 11,577 55 Executive Cabinet Member - Environment Regulatory 338 414 77 Executive Cabinet Member - Environment Delivery 16,017 16,083 66 Executive Cabinet Member - Highways & Transport 6,158 6,309 152 Executive Cabinet Member - Strategic Planning & Housing 1,116 1,174 58 Executive Cabinet Member - Stronger Communities 614 658 44 Total Directorate of Place 35,975 36,434 459 . Variance analysis Appendix A provides a detailed breakdown by service of the quarter one projected year end variance. There are three significant variances highlighted at quarter one: Highways & Transport Portfolio – £152k The main variance relates to the costs of electricity. Whilst the number of units have reduced the cost per unit is higher than budgeted. Planning - £96k The Planning Division are seeing an increase in Legal and Consultancy charges related to challenges to large applications. CPS - £170k The service is seeing a loss of income. A review of all lease arrangements is currently taking place. 5 2.4 COVID-19 The introduction of national restrictions to combat the spread of the COVID-19 global pandemic took effect from 24th March 2020. The financial impact of restrictions and service closures is now being seen in the 2020/21 financial year. Across the services areas under the Place Directorate, the quarter one projected outturn includes £2,628k of additional costs or income foregone as a result of COVID-19 which is currently intended to be matched by funding from the National Emergency COVID funding received by the Council from Government. It should be noted that COVID pressures across the Authority are expected to exceed the funding that has been made available to date. 3 Saving and efficiency 2019/21 reductions In setting the Strategic Budget for the year, the Directorate of Place was required to implement £5.7m of saving and efficiency reductions over the 2019/21 financial years. Action is being taken to implement the reductions and ongoing monitoring of expenditure against specific options has been incorporated into the financial monitoring. Details of progress is given in appendix C. A summary can be found in the table below: Summary £'000 Already approved 2,277 In Consultation 60 Seek approval within this report 1,177 Still to come forward 2,186 Total Programme 5,700 Appendix E contains details of the £1.177m of savings being proposed within this report for approval and Appendix F provides details of the vacant posts being disestablished. The proposed saving relating Environmrntal Services Delivery totals £109k and includes 1 post as shown in appendix G This would leave £2.186m still to come forward for approval. 6 The savings options seeking approval within this report can be summarised as follows: £'000 Summary Additional Income 328 Budget savings 406 Deletion of Vacant Posts 443 Total 1,177 4 Capital Programme Total capital expenditure at quarter one for the Directorate of Place is £7.1m against a revised quarter one allocation of £84.1M. 4.1 In year movements The capital programme of the Directorate of Place, had approvals totaling £118.518m. This comprised of: the original approval of £85.895m in the capital programme report to Council on 19th February 2020, £11.680m brought forward from the residual 2019/20 programme £700k transferred to People Directorate capital programme an additional £21.643m of funding programmed since the capital programme report of February 2020. Of these approvals, £34.374m are currently forecast to be carried forward into 2021/22 for schemes profiled to complete in 2021/22 or beyond. £m 20 20/21 Original Approval 85.895 Brought forward from 2019/20 11.680 Transfer to People Directorate -0.700 Additions in year 21.643 Total available funding: 118.518 Quarter 1 Revised Allocation 84.143 7 The Directorate of Place’s capital programme can be broken down across the portfolio areas as follows: Table Four Directorate of Place Capital Programme 20/21 21/22 Portfolio Original Revised Actual At Original Revised Allocation Allocation Q1 Allocation Allocation 2020/21 2020/21 2020/21 2021/22 2021/22 £ £ £ £ £ Total Deputy Leader 62,655,108 48,970,543 5,371,741 1,000,000 33,483,739 Total Stronger 4,049,596 4,049,596 40 0 0 Communities Total Environmental 0 115,000 0 0 0 Regulatory Total Environmental 6,527,654 7,809,190 738,067 0 1,890,642 Services Delivery Total Highways & 12,662,519 23,198,883 991,098 0 0 Transport Directorate of Place 85,894,878 84,143,212 7,100,946 1,000,000 35,374,381 Grand Total Full capital programme is shown in appendix B 5 Reserve movements Table Five –Directorate of Place Reserves Position - 2020/21 Outturn Opening Balance Movements in Closing Balance Reserves Summary by at 01/04/20 Year 31/03/21 Portfolio £ £ £ Deputy Leader -3,036,264 321,423 -2,714,841 Environment Regulatory -163,961 43,298 -120,663 Environment Delivery -1,785,372 305,025 -1,480,347 Highways and Transport -1,338,475 0 -1,338,475 Strategic Housing and Planning -70,452 13,440 -57,011 Stronger Communities -210,146 44,414 -165,732 Total -6,604,670 727,601 -5,877,069 After the projected use of reserves of £727,601 during 2020/21, the closing balance at 31 March 2021 is projected to be £5,877,069.
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