Report of the Deputy Chief Executive and City Treasurer attached

The Executive considered a report of the Deputy Chief Executive and City Treasurer, which report informed Members of requests to increase the capital programme, sought approval for those schemes that could be approved under authority delegated to the Executive and requested the Executive to recommend to Council proposals that required specific Council approval

The proposals which required Council approval were those which were funded by the use of reserves above a cumulative total of £2million, where the use of borrowing was required or a virement exceeded £0.500m. These included the following proposed changes:-

·                Chorlton Library Refurbishment – a capital budget increase of £0.600m in 2021/22 funded by borrowing, and a capital budget virement in 2021/22 of £0.105m, funded by Open Libraries Project was requested to provide significant repair and maintenance as identified by a recent condition survey;

·                Campfield Redevelopment Acquisition of Castlefield House – a capital budget virement of £3.735m in 2021/22 was requested, funded by Sustaining Key Initiatives budget in order to facilitate the redevelopment of Campfield Yard;

·                Hammerstone Road – . A capital budget increase of £4.969m in 2022/23 was requested, funded by borrowing to deliver key changes identified by stakeholders, additional design developments and support to Biffa remaining operational on the site whilst works take place

·                Accident Reduction and Local Community Safety Schemes – a capital budget virement of £2m in 2021/22 was requested, funded by Other Improvement Works budget to deliver an improved road safety at multiple locations across the city

The report then went on to detail the proposals that did not require Council approval which were funded by the use of external resources, use of capital receipts, use of reserves below £2millio, where the proposal could be funded from existing revenue budgets or where the use of borrowing on a spend to save basis was required.  These included:-

·                Wythenshawe Cycling Hub – A capital budget increase of £0.500m in 2021/22 was requested, funded by External Contribution, and a capital budget virement of £0.599m in 2021/22 was requested, funded by Parks Development Programme in order to develop the City’s first Cycling Hub Facility at Wythenshawe Park, address the inactivity levels in South Manchester and support people within the catchment area to access cycling in a traffic free environment within 15 minutes from where people live;

·                Off Street Parking Priority Works – . A capital budget increase of £0.606m in 2021/22 was requested, funded by Capital Receipts for priority works that should be undertaken in the first 12 months of the car parks being run in house;

·                Carbon Reduction Programme – a capital budget increase of £1.323m in 2021/22 was requested, funded by External Contribution to  

·                to support the delivery of a large Solar Car Port installation at the National Cycling Centre and a large rooftop Solar PV plus battery storage installation at the Council’s Hammerstone Road Depot;

·                Schools Capital Maintenance Programme – a capital budget increase of £1.287m in 2021/22 was requested, funded by Government Grant to be used to address condition needs identified in the Council’s estate of maintained schools which includes community, voluntary controlled and foundation schools.

The report highlighted that there had been increases to the programme totalling £1.690m as a result of delegated approvals since the previous report to the Executive on 17 February 2021. These were detailed at Appendix 2

Approval had also been given for a capital budget virement for Coop Academy Belle Vue - Full Project. This project would deliver a new 1200 place (8 Form Entry) secondary school with associated grounds and infrastructure works on the site of the Showcase Cinema on Hyde Road in readiness for September 2023 opening.  The project was funded by £23.474m Unallocated Education Basic Need budget and £3.864m Unallocated Presumption Free School Grant.

It was reported that if the recommendations were approved the General Fund capital budget would increase by £9.285m, across financial years as detailed in Appendix 1.  This would also result in an increase in the prudential indicator for Capital Expenditure in corresponding years.  Monitoring of all prudential indicators was included within the Capital Monitoring Report during the year.

Whilst there was a proposed increase in the requirement for prudential borrowing, this had already been assumed within the Council’s revenue budget and therefore there would be no impact on the City’s Council Tax.

Decisions

The Executive:-

(1)      Recommends that the Council approve the following changes to Manchester City Council’s capital programme:

·                Chorlton Library Refurbishment. A capital budget increase of £0.600m is requested, funded by borrowing, and a capital budget virement of £0.105m, funded by Open Libraries Project.

·                Campfield Redevelopment Acquisition of Castlefield House. A capital budget virement of £3.735m is requested, funded by Sustaining Key Initiatives budget.

·                Hammerstone Road Additional Funding. A capital budget increase of £4.969m is requested, funded by borrowing.

·                Accident Reduction and Local Community Safety Schemes. A capital budget virement of £2m is requested, funded by Other Improvement Works budget.

(2)      Approves the following changes to the City Council’s capital programme:

·                Wythenshawe Cycling Hub- a capital budget increase of £0.500m is requested, funded by External Contribution, and a capital budget virement of £0.599m is requested, funded by Parks Development Programme.

·                Off Street Parking Priority Works – a capital budget increase of £0.606m is requested, funded by Capital Receipts.

·                Carbon Reduction Programme – a capital budget increase of £1.323m is requested, funded by External Contribution.

·                Schools Capital Maintenance Programme – a capital budget increase of £1.287m is requested, funded by Government Grant.

(3)      Notes increases to the programme of £1.690m as a result of delegated approvals.

(4)      Notes virements in the programme of £27.338m as a result of virements from approved budgets.