Report of the Deputy Chief Executive and City Treasurer

This report provides the Committee with the following:

·         A comprehensive detail of areas of income generation at the Council, including, income generating contracts, the commercial investment estate and an update on the City Council’s off street car parking operation following the bringing back in house on 1^st January 2021.

·         An update on the Legal and Democratic services income following a previous report to this Committee in July 2019.

• An overview of work that is ongoing to identify further income generating opportunities and what we can learn from other Local authorities.

The Committee considered the report of the Deputy Chief Executive and City Treasurer, which provided a comprehensive overview of the work taking place to identify further income generation opportunities, as well as what could be learnt from other Local Authorities. An update on the Legal and Democratic services income was also provided at the Committee’s request.

Key points and themes in the report included:

• The context, scope and limitations of the discretionary fees and charges scheme.
• An overview of the income generation budget across different service areas and directorates;
• The impact of the COVID pandemic on commercial income; and
• Opportunities for further income generation.

Some of the key points that arose from the Committee’s discussions were:

• The process that is in place to facilitate the development of new opportunities to generate new income streams.
• In the context of changing priorities for the city, how the impact of falling income streams is managed, with a particular focus on the services they support.
• The accuracy of the projected overall income generation budget for 2021/22.
• The role of the city’s parks and open spaces in generating income for the city.
• The progress of the implementation of the Civic Quarter Heat Network.

A member asked about the process for the development of new potential income streams. The Committee was informed that budget holders and service Directors across the organisation were encouraged to be as innovative as possible. The development of a robust business case which stood up to scrutiny and assessment against specific priorities was key to success. Members stressed the importance of ensuring that, in the context of a reduced workforce, staff were given the time needed to explore and innovate to a meaningful degree.

Using the example of income that is generated through the provision of off-street parking, and the projected decrease in income over the next 5 years, a member asked how the impact on the services they support is managed. The Deputy City Treasurer said that such matters are assessed in terms of infrastructure policy and longer term financial objectives.

A member noted the figures reported in the overall income generation budget and asked the whether the projections for the 2021/22 financial were realistic. The Deputy City Treasurer advised that despite the significant impact of the COVID pandemic, substantial activity had taken place across directorates and service areas resulting in a majority of income budgets being tentatively on track against revised budgets as footfall continues to return.

Members welcomed the contribution of the city’s parks and open spaces to the Council’s budget and noted that there would be significant capital investment in this area to grow commercial assets in this specific area.

Members also welcomed the vision for longer term income generation through the investment in the Civic Quarter Heat Network.  The Committee noted the intention to seek additional customers and effectively grow dividends over the next 2 – 3 years. The Committee also noted that a mapping exercise across the Greater Manchester area was underway to explore further opportunities.

Decision

To note the report.