Agenda item

Report ES13039

Based on expenditure and activity levels to 31st January 2013, the 2012/13 controllable budget for the Environment Portfolio had been projected to under spend by £6k.

Details were provided of the 2012/13 projected outturn with a forecast of projected spend for each division compared to the latest approved budget. Background to variations was also outlined.

Report ES13039 also outlined expenditure against Member Priority Initiatives for the Environment Portfolio and progress of the selected projects. It also highlighted that the final payment of a European grant had been received for the Commerce project. This, together with the release of provisions made for the project totalled £97k. Subject to Executive approval, it was proposed to transfer this amount to the earmarked reserve, for any possible redundancy costs in future related to TfL funded staff.

In response to a question from Councillor Peter Fookes, it was confirmed that no TfL funded staff were being lost and there was no indication that LIP funding would cease. The proposed transfer of £97k to an earmarked reserve would be held to cover any possible redundancy costs for TfL funded staff should the costs not be able to be contained within LIP resources.

Councillor Julian Grainger questioned whether the projected shortfall for on and off-street parking could be attributed to current economic conditions. He felt the economy was currently stable and he sought evidence that economic conditions might have contributed to the shortfall. It was explained that fewer people overall were parking – less than originally projected. There was also a lower footfall in town centres. The downturn took place in the first year of the recession and parking demand had remained stagnant since then.

On enquiring whether there were shorter parking times or less parking, Councillor Grainger was advised that overall visits had reduced as had revenue from parking tickets.

Concerning rebates and credits of Cr £80k for street lighting electricity, it was indicated to Councillor Jefferys that this was associated with the terms of the street lighting energy contract where an adjustment was made in the following year for the difference between estimated electricity prices used compared to actual prices.

Highlighting the projected surplus within Trade Waste collection income, Councillor Reg Adams was pleased that the price increase from 1^st April 2012 had not had a detrimental effect. With the previous year’s price increase for trade waste collections similarly not having a detrimental effect, Councillor Adams highlighted the advantage over two years of raising trade waste collection prices.

In response to a question from the Vice-Chairman, it was indicated that the Street Scene and Green Space review of back-office functions had been implemented as soon as was possible. There were delays in the planned closure of public conveniences as they were not closed until alternative provision was in place.

Referring to Winter Maintenance costs, Councillor Grainger highlighted a projected £100k variance for salt, gritting and snow clearance. Even though it had been a long cold winter, snow had not fallen to the level of recent winters. It was explained that a lot of precautionary salting had been necessary given the frequency of sub-zero temperatures. Councillor Grainger considered that some salting in the Chelsfield area was excessive given the level of salting found on pavements. 

The Chairman highlighted a projected £50k surplus from the green garden waste collection service due to its popularity and a higher take-up than originally budgeted.

In view of winter weather being unpredictable in recent years, the Chairman suggested that the Environment budget bears a limited amount towards winter maintenance costs with a remainder (up to £600k) held as central contingency to be drawn upon when necessary. Supporting the idea, Councillor Grainger suggested that a typical level of winter maintenance be determined from experience over recent years and that any maintenance costs above such a level be met from contingency. The Director indicated his support to having a certain level of contingency.

RESOLVED that the Portfolio Holder be recommended to:

(1)  endorse the latest 2012/13 budget projection for the Environment Portfolio;

(2)  note progress with implementing the Environment projects within the Member Priority Initiatives programme; and

(3)  request that the Executive approve the transfer of £97k to an earmarked reserve to meet future possible redundancy costs as detailed at paragraph 5.7 of Report ES13039.