The report of the City Treasurer (Deputy Chief Executive) is attached

A report by the City Treasurer set out the outturn on the Council’s capital expenditure in 2018/19. The total capital used in 2018/19 had been £361.6m compared to the revised budget of £400.0m approved in February 2019 (minute Exe/19/10). The 2018/19 Capital Outturn for the programme on behalf of Greater Manchester had been £91.2m compared to the revised budget of £95.8m.

The report set out an analysis of the capital expenditure in the functions and departments of Council’s work, explaining the budget and actual outturn for each.

The report also set out the decisions that had been made by the City Treasurer regarding the funding of the capital expenditure incurred in 2018/19. These were:

·         Any unused grant, subject to conditions, had been carried forward into 2019/20 to be matched against future spend.

·         Any external contributions that had not been used were carried forward into 2019/20.

·         The balance of available capital receipts carried forward from 2017/18 had been £72.0m. A further £51.0m receipts were received in 2018/19. Drawdown of capital receipts was £41.1m leaving a balance for use in future years of £81.9m, of which £54.9m relate to Housing.

·         Revenue contributions were used to finance expenditure of £9.0m, including works on Strategic Acquisitions, the HRA, and to fund ICT expenditure.

·         The Major Repairs Reserve was utilised to fund expenditure on the HRA capital programme.

·         Borrowing of £300.0m had been used to fund the programme, including the £124.2m term loan facility paid to Manchester Airport to support their transformation project, and a further £74.6m borrowing used to support the Housing Investment Fund.

·         The minimum revenue provision for 2018/19 was £20.9m. This was the funding set aside to repay the debt incurred through funding previous capital expenditure through borrowing. That had been funded from the Council’s capital financing budget.

The report also proposed the virement of budget allocations within the 2019/20 and the 2020/21 capital programmes. These were all approved:

We noted and accepted the views that the Resources and Governance Scrutiny Committee had expressed on this report at a recent meeting (Minute RGSC/19/28).

Decisions

1.         To note the outturn of capital expenditure 2018/19 for the Manchester City Council Programme was £361.6m. The outturn of capital expenditure 2018/19 for the Programme on behalf of Greater Manchester was £91.2m.

2.         To note the changes to the outturn attributable to movement in the programme that occurred after the previous monitoring report (Minute Exe/19/10).

3.         To approve the budget transfers between capital schemes as set out above in Table 2 above, to maximise the use of funding resources available to the Council.

4.         To note the decisions of the Deputy Chief Executive and City Treasurer regarding the funding of capital expenditure in 2018/19.

5.         To note the impact of final expenditure in 2018/19 on the revised Capital Programme 2019/20 to 2023/24.