Report of the Deputy Chief Executive and City Treasurer attached

The Executive considered a report of the Deputy Chief Executive and City Treasurer, which informed Members of requests to increase the capital programme.   The report also sought approval for those schemes that could be approved under authority delegated to the Executive and asked 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 exceeds £0.5m. These included the following proposed changes:-

·                Neighbourhoods – Blackley Crematorium Cremator Replacement Additional Funding. A capital budget increase of £0.203m was requested, funded by borrowing for additional required works including, increased ventilation requirement, electricity supply upgrade, increase in the amount of builder works required to align new cremators with existing openings and inflation costs

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 £2million, 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:-

·                Highways Services – Manchester Cycleway Construction (Fallowfield Loop and Yellow Brick Road).  A capital budget increase of £0.375m in 2021/22 and £3.341m in 2022/23 was requested, funded by external contribution for upgraded pedestrian and cycle facilities with improvements from a safety, access, lighting and ecological perspective on the Fallowfield Loop and Yellow Brick Road.

·                Children’s Services – City Centre School.  A capital budget increase of £2.450m in 2022/23 and £0.250m in 2023/34 was requested, funded by external contribution, and a capital budget virement of £0.250m in 2021/22 and £3.250m in 2022/23 was requested, from the approved Education Basic Need Unallocated budget for the creation of a new primary school at the Crown Street Phase 2 development in the ward of Deansgate.

·                ICT - Highways Maintenance and Street Works Asset Management Software.  A capital budget decrease from ICT Investment budget of £0.356m in 2021/22 and £0.075m in 2022/23 was requested and approval of a corresponding transfer of £0.431m to the revenue budget, funded by capital fund for the implementation of a new software solution for Highways which will make Manchester City Council more efficient and effective in discharging its statutory duties with regard to Highways Maintenance and Streetworks.

·                Highways Services - Transfer of Great Ancoats Street (GAS) Funding to the A6 Stockport Road Pinch Point Scheme. A capital budget virement of £0.155m in 2021/22 is requested, funded by borrowing from the Great Ancoats Street Improvement Works approved budget due to unforeseen costs encountered during the construction phase of works due to ground conditions and a water main requiring additional works.

The report highlighted that there had been increases to the programme totalling £0.376m as a result of delegated approvals since the previous report to the Executive on 15 September 2021 and if the recommendations in the report were approved the General Fund capital budget would increase by £6.188m across financial years which would also result in an increase in the prudential indicator for Capital Expenditure in corresponding years

Approval had also been given for a capital budget virement from Unallocated Education Basic Needs budget to The Barlow RC High School. The £1.050m for the project would add a resource provision of 16 places to the school’s capacity for children with an Education, Health, and Care Plan (EHCP).  A further capital budget virement had been approved to ensure the final outstanding payment to the contractor for the expansion of Crab Lane Primary School in 2015-16. £0.010m was vired from the Unallocated Education Basic Needs budget.  And finally, a virement for Wythenshawe Track Changing Rooms was also approved utilising Parks Development Programme budget. The additional £0.105k for the project would ensure the replacement of accessible changing and toilet facilities at Wythenshawe Athletics Track.

Decisions

The Executive:-

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

·                Neighbourhoods – Blackley Crematorium Cremator Replacement Additional Funding. A capital budget increase of £0.203m is requested, funded by Borrowing.

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

·                Highways Services – Manchester Cycleway. A capital budget increase of £3.716m is requested, funded by External Contribution.

·                Children’s Services – City Centre School. A capital budget increase of £2.7m is requested, funded by External Contribution, also, a capital budget virement of £3.5m is requested, from approved Education Basic Need Unallocated budget.

·                ICT - Highways Maintenance & StreetWorks Asset Management Software. Acapital budget decrease from ICT Investment Budget of £0.356m in 2021/22 and £0.075m in 2022/23 is requested and approval of a corresponding transfer of £0.431m to the revenue budget, funded by Capital Fund.

·                Highways Services - Transfer of Great Ancoats Street (GAS) Funding to the A6. A capital budget virement of £0.155m is requested, funded by Borrowing from Great Ancoats Street approved budget.

(3)       Notes the increases to the programme of £0.376m as a result of delegated approvals.

(4)       Notes the virements in the programme of £1.165m as a result of virements from approved budgets