Agenda item

The report provides a review of the 2016/17 budget for the General Fund and the Housing Revenue Account against forecast to 31 March 2017, based on the latest information available. 

Recommendation

It is recommended that the Executive notes the report and

1.            recommends to Council that approval be given to the creation of a new permanent Environmental Services Assistant post to be funded from the increased number of customers for the garden waste collection service, as set out in paragraph 5 (iii);

2.            approves the additional supplementary estimate of £10,000 for external legal costs regarding Development Control appeals, as set out in paragraph 6 (i);

3.            recommends to Council to earmark up to £50,000 of the leisure centre profit share in 2016/17 to undertake an options appraisal for future leisure centre investment and the development of the management contract as set out in paragraph 7;

4.            recommends to Council to approve the rescheduling of £50,000 of the roofline budget into 2017/18 as set out in paragraph 19 (i);

5.            recommends to Council to approve the rescheduling of £65,000 of the sewerage plant budget into 2017/18 as set out in paragraph 20 (ii);

6.            recommends to Council to approve the virement of £90,000 from the Structural works budget, £70,000 to the former Police House scheme in Farnham and £20,000 to the lift refurbishment budget as set out in paragraph 20 (iii);

7.            recommends to Council to approve the rescheduling of £70,000 of the timber cladding replacement budget into 2017/18 as set out in paragraph 20 (iv);

8.            recommends to Council to approve the rescheduling of £135,000 from the Domestic Heating Upgrades budget into 2017/18 as set out in paragraph 21 (i);

9.            approves a virement of £10,560 from the Rewiring budget into the Electrical Upgrade budget as set out in paragraph 21 (ii);

10.         approves a virement of £20,000 from Structural works into the Lift refurbishment budget as set out in paragraph 21 (iii);

11.         recommends to Council to approve the rescheduling of £50,000 for Flat Block Communal Upgrades into 2017/18 as set out in paragraph 22 (i); and

12.          recommends to Council to approve the rescheduling of £800,000 for Ockford Ridge refurbishment – Phase 2 into 2017/18 as set out in paragraph 25.

91.1    The Executive considered the budget management report reviewing the 2016/17 budget for the General Fund and Housing Revenue Account and RESOLVED that approval be given to additional supplementary estimate of £10,000 for external legal costs regarding Development Control appeals.

91.2    The Executive went on to consider a number of items within the report that require Council approval, the details of which are set out below.

91.3    Garden waste subscriptions continue to increase and for team stability and resilience it will be beneficial if the long-standing temporary post of Environmental Services Assistant becomes a permanent post. The existing budget for the temporary post will not cover the period beyond November 2016. The garden waste subscriptions will result in a surplus on the scheme but will also generate additional workload. The continuance of the additional post will be funded by the income generated from the additional garden waste subscriptions; therefore, the recommendation is to fund a permanent post from garden waste subscriptions.

91.4    The profit share that Waverley receives from the operation of its leisure centres is projected to be in excess of budget in 2016/17 due to strong performance of the centres and high demand for the new facilities provided as part of the Council’s leisure investment programme. Phase two of the investment programme is currently being planned which will bring further improvements for users and an improved return to the Council in addition to managing the significant lifecycle cost risk in some of the older facilities in the coming years. These plans will be considered by the Council in 2017. To help inform these plans and identify the full range of options, it is proposed to set aside up to £50,000 of the above-budget profit share in 16/17 to undertake the necessary specialist leisure, property and legal work to inform the options appraisal for future leisure centre investment and development of the management contract.

91.5    With regard to the Housing Revenue Account Core Capital, As part of the Roofing and Associated Works, It is requested that £50,000 of the roofline budget be rescheduled into 2017/18 budget to enable this work to be completed

91.6    With regard to Structural and Damp Work, a saving of £50,000 will be achieved on the External Wall finish this year. 

91.7    For the Sewerage Plant, investigation and resolution of legal issues have delayed this project and it is requested that the £65,000 budget is rescheduled to 2017/18.  In terms of structural works, additional savings of £90,000 have been achieved through the disposal rather than refurbishment of properties requiring major structural works. 

a.    £35,000 is requested to be vired to fund the water main works at the former Police Houses in Farnham;

b.    £35,000 is requested to be vired to fund heating for the former Police Houses in Farnham; and

c.    £20,000 vired to fund lift refurbishment.

91.8    A pilot timber clad replacement programme only will be undertaken this year to be followed by completion of the project in 2017/18. It is requested therefore that £70,000 is rescheduled to 2017/18. Due to access issues being experienced to upgrade heating to some properties it is requested that £135,000 is rescheduled to 2017/18 to enable completion of the planned domestic heating upgrades.

91.9    It is requested that £10,560 of the electrical rewiring budget be vired into the Electrical upgrade budget to enable this work to be completed.  The preferred tender received for the lift refurbishment work, although considered competitive, is £20,000 over original budget. In order to complete this project a sum of £20,000 is requested to be vired from Structural Works.

91.10  Surveys undertaken for the Flat Block Communal Area Upgrade to date have identified works estimated at £50,000.  It is therefore requested that £50,000 is rescheduled to 2017/18 to enable further works to continue next year.  A saving of £35,500 against the budget for upgrading community rooms is anticipated this year.

91.11  The pilot phase of Ockford Ridge refurbishments is underway, and Phase 1 will be carried out before the end of the financial year. However, Phase 2 will not to start until 2017/18. Therefore it is requested that £800,000 of the Ockford Ridge refurbishment budget is rescheduled into 2017/18 so that the works can start early in the new financial year.  The Executive now

RECOMMENDS that

70.       approval be given to the creation of a new permanent Environmental Services Assistant post to be funded from the increased number of customers for the garden waste collection service;

71.       up to £50,000 of the leisure centre profit share in 2016/17 be earmarked to undertake an options appraisal for future leisure centre investment and the development of the management contract;

72.       the rescheduling of £50,000 of the roofline budget into 2017/18 be approved;

73.       the rescheduling of £65,000 of the sewerage plant budget into 2017/18 be approved;

74.       the virement of £90,000 from the Structural works budget be approved, £70,000 to the former Police House scheme in Farnham and £20,000 to the lift refurbishment budget;

75.       the rescheduling of £70,000 of the timber cladding replacement budget into 2017/18 be approved;

76.       the rescheduling of £135,000 from the Domestic Heating Upgrades budget into 2017/18 be approved;

77.       a virement of £10,560 from the Rewiring budget into the Electrical Upgrade budget be approved;

78.       a virement of £20,000 from Structural works into the Lift refurbishment budget be approved;

79.       the rescheduling of £50,000 for Flat Block Communal Upgrades into 2017/18 be approved; and

80.       the rescheduling of £800,000 for Ockford Ridge refurbishment – Phase 2 into 2017/18 be approved.

[Reason: to review the 2016/17 budget for the General Fund and Housing Revenue Account against the forecast to 31 March 2017]