Manchester City Council Report for Resolution. Report to: Executive 12 February 2014 Finance Scrutiny Committee 24 February 2014

Transcription

1 Manchester City Council Report for Resolution Report to: Executive 12 February 2014 Finance Scrutiny Committee 24 February 2014 Subject: Capital Programme ( 2014/ /17) Report of: The City Treasurer Summary The purpose of the report is to present the 2014/15 capital programme and forward commitments. Included in the report is an update on the latest estimates of expenditure in 2013/14 and explanation of the major variations since the Capital Monitoring report to October Executive. Recommendations The Executive is requested to: 1. Note that this report reflects the latest position as at January Capital expenditure to date is 117.5m and the latest full year forecast is m. 2. Agree that the capital budget be amended to reflect movement in the programme, attributable to approved budget increases, updates to spending profiles and in year budget transfers between capital schemes to maximise use of funding resources available to the city council. 3. Note that capital resources will be maximised and managed to ensure the capital programme 2013/14 remains fully funded and that no resources are lost. 4. Recommend the City Council to approve the capital programme as presented in Appendix 1 (for m in 2014/15 and m in 2015/16 and m in 2016/17) which will require prudential borrowing of m to fund non-hra schemes over the three year period. Provision has been made in the revenue budget for the associated financing costs within the limits previously agreed. 5. To note that the capital programme will continue to be reviewed and any recommendations will be reported back to Executive. 6. Approve and recommend Council to delegate authority to: a) The Director of Growth and Neighbourhood Services in consultation with the Executive Member for Environment for the approval of the list of schemes to be undertaken under the Highways capital programme. b) The Director of Growth and Neighbourhood Services to implement these schemes in accordance with the Capital Gateway process and 149

2 after consultation with the Executive Member for Environment on the final details and estimated costs. c) The City Treasurer in consultation with the Executive Member for Finance and Human Resources to add qualifying spend to save projects to the capital budget accordingly up to a maximum of 5,000,000 in 2014/15 and then 5,000,000 per year thereafter. d) The City Treasurer in consultation with the Executive Member for Finance and Human Resources is authorised to increase the capital budget by up to 500,000, subject to 100% external funding being available. e) The City Treasurer, in consultation with the Executive Member for Finance and Human Resources to accelerate spend when necessary within the programme subject to resource availability. f) The City Treasurer in consultation with Executive Member for Finance and Human Resources to agree and approve where appropriate the following: i. The programme of schemes for the delivery of the corporate asset management programme ii. Proposals relating to Corporate Compulsory Purchase Orders g) The City Treasurer in consultation with the Executive Member for Finance and Human Resources to make alterations to the schedules for the capital programme 2014/15 to 2016/17 prior to their submission to Council for approval, subject to no changes being made to the overall estimated total cost of each individual project. Wards Affected: All Community Strategy Spine Performance of the economy of the region and sub region Reaching full potential in education and employment Summary of the contribution to the strategy The capital programme contributes to various areas of the economy including investment in public and private sector housing, education and children s social care, transport infrastructure, major regeneration activities, environmental, cultural and leisure services. The capital programme includes substantial investment in education and also provides opportunities for the construction industry to bid for schemes that could provide employment opportunities at least for the duration of contracts. 150

3 Individual and collective self esteem mutual respect Neighbourhoods of Choice The capital programme includes investment in adult and children s social care, education, housing and the environment, cultural and leisure services, all of which contribute towards this community strategy. Investment in all areas of the capital programme contributes towards the community strategy, notably investment in sustainable and affordable housing, building schools for the future, transport, environmental and major regeneration programmes. Full details are in the body of the report, along with any implications for: Equal Opportunities Policy Risk Management Legal Considerations Financial Consequences Revenue The capital programme report as presented will require the following level of prudential borrowing m (all non-hra) over the three year period and provision is being made in the revenue budget for the associated financing costs. The revenue consequences of proposed Capital schemes are considered by the Gateway process and then developed within business plans to ensure provision within revenue budget. Financial Consequences Capital The latest forecast spend for 2013/14 is m. The proposals contained in this report would create a capital programme of m in 2014/15, m in 2015/16 and m in 2016/17. Contact Officers: Name: Richard Paver Position: City Treasurer Telephone: r.paver@manchester.gov.uk Name: Carol Culley Position: Assistant Chief Executive (Finance and Performance) Telephone: c.culley@manchester.gov.uk Name: Ceri Taylor Position: Head of Finance Corporate Capital, Projects and Taxation Telephone: c.taylor2@manchester.gov.uk 151

4 Attachments Appendix 1: Detailed Three Year Capital Programme Background documents (available for public inspection): The following documents disclose important facts on which the report is based and have been relied upon in preparing the report. Copies of the background documents are available up to 4 years after the date of the meeting. If you would like a copy please contact one of the contact officers above. Report to the Executive 13 February 2013 Capital Programme 2013/14 to 2015/16. Report to Council 8 March 2013 Report to the Executive 25 June 2013 Capital Programme Outturn 2012/13. Report to the Executive 24 July 2013 Capital Programme Monitoring Report 2013/14. Report to the Executive 23 October 2013 Capital Programme Monitoring Report 2013/

5 Introduction 1. The purpose of the report is to present the capital strategy and capital programme for 2014/15 and future years and to confirm that there are adequate levels of resources available to finance the capital programme. Strategic Context 2. Manchester is an ambitious city with a strong track record of delivery through partnerships and effective strategic leadership, improving the quality of life for the residents and delivering a vision of making Manchester a world class city. The Combined Authority and Local Enterprise Partnership provide accountability, civic and business leadership and a platform for decisions on funding streams for growth to be brought together and devolved on a place basis. 3. The strategy adopted over the past three years of ensuring decisions are based on the priorities for the City needs to be continued. This requires a clear framework for making spending decisions and maximising the resources that remain. The Strategic Approach to 2015/16 and Beyond elsewhere on the agenda sets out the framework. This is drawn from the overall aims for Greater Manchester which are set out in the Greater Manchester Strategy (GMS) and the Community Strategy. This and the updated budget principles for: the Corporate Core; Leadership of Place; Targeted and Specialist Services; and Universal Services have informed the revenue and capital budget proposals which are being put forward. Given current economic pressures the ambition for the Council is to deliver a capital programme with the optimum combination of projects that represent the key priorities of the City Council and maximise the funding resources that are available. 4. Greater Manchester Strategy sets out the Vision for the future By 2020 the Manchester City region will have pioneered a new model for sustainable economic growth based around a more connected, talented and greener city region where the prosperity secured is enjoyed by the many and not by the few. As part of the bespoke Deal for Cities, the Council has been developing an Investment Model with other GM authorities, that supports the delivery of strategic priorities through the clear prioritisation of a pipeline of projects based on the contribution they make to jobs and growth and the packaging and targeting of funding to deliver them. The project pipeline includes projects that support commercial and physical developments, transport and broadband infrastructure, business support, housing and low carbon projects. 5. The Investment framework builds on the work that GM has done to develop the Greater Manchester Transport Fund and the Evergreen (JESSICA) fund for the North West. Over time, it is intended that more funding streams should flow through this model and for these funding streams to be allocated on the basis of growth potential, consistent with Manchester s priorities. It supports the innovative use of the available public funding, much of which will be invested in projects and, once repaid, recycled and invested in new projects 153

6 for a second and third time aiming to de-risk projects and lever in private sector funding. 6. The City Council continues, with its partners locally, sub-regionally and regionally and with the government, to try to give individuals, communities and businesses the best possible support. Flexibility needs to be retained within the Capital Strategy to enable the council to continue to pro-actively respond to pressures including the risk that private sector building activity remains slow. 7. The City Council s role is to provide the leadership to enable all private, charitable, voluntary, statutory and non-statutory bodies to achieve the Community Strategy objectives. Regeneration capital projects are particularly important to this process and they are guided by Strategic Regeneration Frameworks for each district of the city. 8. The Council and its partners have made major advances in pursuing the agenda for regeneration. Many areas of the city that suffer from acute economic and social deprivation have undergone a transformation to substantially improve their future prospects and long term sustainability. The city centre has benefited from major investment in new attractions and facilities and has become a location where people increasingly choose to live, work and play. The airport, universities and other major economic assets continue to expand and develop underlining Manchester s prominence as regional capital of the North West. 9. The Community Strategy provides a clear and over-arching vision to create a city that meets and exceeds the needs of all residents. To create neighbourhoods of choice by improving opportunities for people to access quality housing, reach their full potential, and connect to the benefits of our economic growth. To achieve that vision the Council engages, enables and influence housing providers, funders, regulators, and policy makers. The economy has changed a great deal in recent years. At a time when the housing market is likely to remain changeable for some years, and funding is restricted, the City Council s strategy needs to be innovative; working with new partners and new initiatives to keep the city growing. 10. The Council continues to receive reduced capital receipts from sale of its land, due to low land values and an absence of purchasers as a result of the depressed market. We have responded to this situation by deferring some sites until there is market recovery and will be putting effort into getting sites and properties ready to bring to market at the appropriate time. The City Council has implemented a funding strategy to protect capital receipts so that the only disposals are ones where best value is achieved or where they are a key driver for regeneration. Where appropriate and prudent to do so some acquisitions of land/property have been progressed to take advantage of the market where such acquisitions can further the strategic priorities. 11. To continue to provide high quality public services, providing true value for money whilst creating the conditions for economic growth, improved skills and 154

7 productivity and less deprivation and dependency, the Council and the City need to: Influence early years 0-5 provision, educational attainment and attendance in the role as a commissioner of provision. Continue to focus services and be flexible to meet the needs of diverse neighbourhoods. Meet the challenges posed by climate change, both in terms of adaptation and reductions in carbon emissions. Tackle worklessness by developing the aspirations and skills that will help people to break through generational cycles of dependency and deprivation. 12. The challenge for the future is to drive transformation, to define Manchester as an attractive place to live and further improve the quality of life for all residents and increase their overall social and economic prospects, and enable them to participate fully in the life of the city. Capital Programme 13. The development of the Capital Programme stems from the priorities outlined in the Strategic Approach Report elsewhere on the agenda and the approach to the Capital Strategy outlined above. Together these frame the balance between the investment priorities for the Council and the level of resources available. Given the constraints on the level of resources available the aim is to maximise the use of external funding, receipts where available and to limit increasing the borrowing requirement 14. The Council is committed to a varied capital investment programme including Growth and Neighbourhood Highways Planned Maintenance Programme Waste and Recycling Programme Street Lighting Public Sector Housing Programme Private Housing Assistance Programme Brunswick PFI Co-Op Regeneration project Alexandra Park Restoration Programme Collyhurst and Irk Valley Regeneration Programme West Gorton Regeneration Programme First Street Cultural Facility Beswick Community Hub Libraries and Leisure Centres Manchester s Digital Sector Programme Asset Management Programme Strategic Acquisitions Education and Schools 155

8 Basic Need (additional places) programme Schools Maintenance Programme Early Education Programme for 2 year olds Building Schools for the Future (ICT) Corporate ICT Investment Programme Town Hall Complex Transformation Programme 15. The capital programme uses the most up to date forecast of outturn figures for 2013/14 of m as the base point for its calculation. 16. The current three year capital programme 2013/14 to 2015/16 originally approved by the Executive in February 2013 is being implemented and has been updated for the amendments and additions approved by the Executive and Council throughout the year. 17. The Capital Programme has continually been reviewed in year to ensure available resources are maximised and delivery managed to ensure the programme remains fully funded and that no resources are lost. The focus of review has been: confirming priorities and contractual commitments reviewing resource availability and funding conditions considering strategic spatial priorities 18. In reviewing resource availability, there has been particular focus on maximising flexibility around external funding and how it is applied, for example whether it has specific ring fence conditions or it can be used more generally to support the capital programme. Current Commitments 19. The capital programme 2014/15 to 2016/17 comprises the continuation of the current three year programme and new proposals approved by the Gateway 1 Capital Review Board. The figures relating to the programme continuation are based on estimates compiled as at January It has been calculated on the expectation that the current year outturn will be m. 20. The carry forward of committed schemes from the current programme into future years, based on the latest monitoring position for 2013/14, and the addition of new schemes detailed below gives a proposed new capital programme of: o 2014/ m o 2015/ m o 2016/ m 21. The current programme only includes an estimate of Central Government grant settlements for Schools Maintenance as confirmation of final settlement 156

9 is expected this month and no estimate has been included for future years. The programme does not include Government funding for Highways and Housing in 2015/16 and 2016/17 as grant settlements are yet to be confirmed. 22. The programme will need to be reviewed if the resource position changes from the indicative level. The funding resources available to the City Council are invested so that they focus on the key priorities for the Council going forward and take a holistic view of all planned investment in a locality. Priority will be given to key recurring programmes and strategic investments. Projects that will secure 100% external funding can be added to the programme if they fit strategically. 23. The report goes on to set out for each area of the Capital programme the changes to the delivery of the programme in 2013/14 and associated rephrasing of schemes, committed schemes for future years already included in the programme and new schemes identified through the Gateway and review process. 24. Service departments have submitted bids through the Gateway evaluation process identifying capital investment requirements that are in line with corporate objectives. Most of the new bids come with external funding and where there is a requirement for Council resources it has previously been reserved, is already in the budget, has been released from other projects following the reduction in prudential borrowing requirements identified during the Capital Programme review. The only additional call on Council borrowing is 32.75m for Street Lighting through an invest to save reported elsewhere on the agenda. 2013/ /17 Capital Programme, New Bids and Recurring Programmes Growth and Neighbourhood Housing Programme 25. Capital investment for Housing and Regeneration develops policies and strategies that support the city s drive for economic growth through the attraction of external resources and translates investment projects into jobs for local residents. To raise the quality and sustainability of homes and the environment to create desirable neighbourhoods for Manchester residents. Public Sector Housing Programme 26. The Public sector Housing programme is summarised in the table below. The programme has increased by m due to the following; 0.313m increase in Energy Company Obligation (ECO) leverage 0.4m Leaseholder Contributions Collyhurst programme 0.042m Community Energy Savings Programme (CESP) contributions 0.750m New Energy Development Organisation (NEDO) contributions 157

10 Project Name m allocation from the HRA in 2016/ / / / / / /17 Revised Forecast Variance Public Sector Housing Collyhurst Improvement Programme Northwards Programme 20,274 20, ,144 18,090 13,823 Northwards Programme (Transfer from Housing Investment Programme) , ,059 Total Northwards Programme 20,274 20, ,724 18,963 17,882 Retained HRA Programme Wilmott Street - acquisition Collyhurst Maisonette Compensation & Dem 1, ,264 0 Holt Town & Miscellaneous Transfer Costs West Gorton PH1 Tenant Relocation & Comp West Gorton PH2A Low & High Rise Demolit 2,661 3, LANB Round Housing Investment Proposals (unallocated) ,079 10,576 3,736 Collyhurst Regen - Highways Phase ,450 1,500 0 Collyhurst Regen - Churnett Street Brunswick PFI HRA ,000 3,000 0 Total Retained HRA Programme 5,011 4, ,555 16,540 3,736 Total Public Sector Housing 25,616 24, ,279 35,503 21, The latest forecast expenditure in for the Public Sector Housing Programme is m. There is slippage of 0.78m into 2014/15. This is mainly due to the re-profiling of Holt Town Development ( 0.74m) and Collyhurst regeneration schemes ( 0.4m), due to delays in negotiations with property owners. This is partially offset by the acceleration of the West Gorton regeneration scheme ( 0.35m). 28. The Northwards Programme for the three years 2014/15 to 2016/17 totals m. This includes allocation from the Housing Investment Programme. 29. The 2014/15 programme includes m existing commitments and a 9.001m new maintenance programme of works. The programme consists of work to maintain decent homes standards, achieve carbon reduction measures, health and safety works, disabled adaptations and environmental improvements. It is funded by decent homes backlog grant 9.430m, HRA self financing m and external contributions 1.357m. 158

11 30. The figures above include the new maintenance programme of works of 9m. This is being funded by 7.274m of the HRA funding ( HRA and 1.580m surplus HRA); 1.144m of the Decent Homes Backlog Grant; and 0.583m external contributions ( 0.033m energy company contributions; and 0.55m NEDO contributions). 31. The Retained Stock Programme for 2014/17 totals m and consists of the following primary schemes; Collyhurst Maisonette relocation & demolition ( 1.8m) West Gorton low and high rise relocation & demolition (0.75m) Holt Town relocation & demolition ( 0.69m) IT development and maintenance programme ( 0.08m) Housing Investment programme ( m) 32. The programme in 2014/15 is funded by HRA self financing of m and Capital Receipts of 0.688m. For 2015/17 this is all met from HRA self financing. 33. A budget allocation of 40m for a Housing investment programme was agreed within the 2013/14 budget to be funded from the HRA surplus over a three to five year period. The forecast spend in 2013/14 is 0.2m for Collyhurst Regeneration Programme. The following allocations have also been made: 8m to the Northwards programme across 2014/18. Brunswick Land assembly: 3m in 2014/15 and 3m in 2015/ The balance remaining to be allocated is 20.5m and has been profiled as 5m in 2014/15, 10.5m in 2015/16, 3.7m in 2016/17 and 1.3m in 2017/18. Private Sector Housing Programme 35. The Private Sector Housing programme is summarised in the table below. The 2014/17 programme has been increased by 6.975m due to the following; 0.041m additional Disabled Facilities Grant (DFG)in 2014/15; 2.967m DFG allocations, from the Department of Health for 2015/16 and 2016/17 0.5m contributions from Registered Providers to match DFG grant, in 2015/16 and 2016/17 respectively. 36. The programme consists of: acquisitions of private Right to Buy properties acquisition of commercial premises demolitions of low rise/high rise and commercial properties disabled adaptations equity and non-equity loan products the Empty Homes scheme. 159

12 2013/ / / / / /17 Project Name Revised Forecast Variance Private Sector Housing Programme Brunswick PFI Land Assembly 7,713 1,420-6,293 3,410 3,912 4,725 Collyhurst PFI Land assembly HIF Site Investigation and Early Works HIF Pilot Sites 1,537 1, Miles Platting PFI Land Assembly 2, ,761 2,646 1,325 0 Stagecoach Depot Remediation Disabled Facilities Grant 3,786 3, ,013 3,467 3,467 Home Improvement Agency Support Energy Efficiency CPO and Acquisition Programme 2, ,921 1, HCA Empty Homes Cluster Funding 2,300 1,300-1,000 1, Redrow Development Phase 2 3,125 3, , West Gorton Compensation West Gorton Ph 2A Demolition & Comm Acqu 3, ,671 2, Total Private Sector Housing 27,772 13,158-14,614 19,868 8,704 8, The latest forecast expenditure in 2013/14 for the Private Sector Housing Programme is m. This is a reduction of 14.6m since the October monitoring and reflects a more accurate position on likely spend on the Brunswick and Miles Platting PFI land assembly programmes. In total 4.9m has now been moved into 2014/15, 5m into 2015/16 and 4.7m into 2016/17. The breakdown of this is shown below: 6.2m of the Brunswick land assembly budget has been re-profiled into future years following financial close of the PFI contract in December The land acquisition budget for the Brunswick PFI programme in total is 13.5m. This will be funded from capital receipts. West Gorton Compensations and demolitions 2.98m slipped into 2014/15, to reflect the anticipated acquisition of commercial and owner-occupied properties. Following a review of the Miles Platting PFI land assembly programme 1.8m has slipped into 2014/15 The CPO and acquisitions programme of 1.8m has been slipped into 2014/15 following a review of CPO commitments. Empty Homes Programme of 1m into 2014/15 due to changes in property market values, beyond estimated purchase prices and a reduced number of empty properties to purchase, however the Cluster Area has been widened and expenditure is anticipated in 2014/15. Energy efficiency scheme 0.36m being reprofiled into 2014/15 due to a slower than anticipated take up of Green Deal loans. 160

13 Disabled Facility Grant 0.3m being reprofiled into 2014/15 in line with latest projections of schemes to be delivered in 2013/ The Private Sector Programme is m. The 2014/15 programme is funded by grants 3.013m, capital receipts m, borrowing 1.076m and external contributions 0.5m. 39. Manchester City Council (MCC) and the Greater Manchester Pension Fund (GMPF) have entered into a partnership to bring forward a new and innovative delivery model for residential development. This model known as the Housing Investment Fund will be run as a pilot project and will invest circa 29m across 5 sites in the City, which will see in the region of 240 new homes delivered for sale and high quality market rent. If successful this approach could attract further institutional investment into the City and across Greater Manchester. The 2013/14 budget of 0.149m funded by grant was increased by 1.388m in December to fund the scheme until the Joint Venture (JV) is established, this will be reimbursed and in future years all costs will be incurred via the JV. Highways Programme 40. Capital investment in Highways seeks to maintain a highway network that is safe, sustainable and accessible for all and supports the economic growth of Manchester. 41. The Highways programme has received grant allocations of 3.380m in 2014/15 ( 3.065m settlement for Highways Maintenance and 0.315m additional specific grant) for ongoing maintenance work from the Department for Transport; these allocations were already included within the reported programme but there are no future year Highways Maintenance budgets as no grant allocation estimates have been provided by Government. 42. A capital grant has also been allocated by Department of Transport for Citywide cycle schemes totalling 7.272m. Schemes need to be delivered by 2015/16. Proposals are being developed including Palatine Road/Wilmslow Road, Heaton Park to City Centre via the National Cycling Centre, Airport City to Wythenshawe Hospital, and the Transpennine Trail Didsbury. The Velocity scheme has been added to the budget profiled as 3.636m in 2014/15 and 3.636m in 2015/ The Highways programme is summarised in the following table and detailed in Appendix

14 2013/ / / / / /17 Planned Highways Maintenance Programme Revised Forecast Variance 4,675 4, , Schemes (under 500k) 3,787 2,704-1,083 1, Schemes ( 500k +) Better Bus Area Fund mph Speed Limits Hyde Road (A57) Pinch Point Widening , SEMMMS PROGRAMME 5,104 5, Velocity ,636 3,636 0 Wythenshawe Bus Station Bus Priority Package 4,842 3,385-1,457 18,835 10,270 0 Total Highways Services 20,213 15,912-4,301 32,026 14, The forecast expenditure on the Highways programme in 2013/14 has been reduced by 4.301m from 20.2m to 15.9m since the October monitoring report; with 0.635m falling out of the programme, 2.942m re-profiled into 2014/15 and 0.724m into 2015/16. This is mainly due to: the re-profiling of 0.675m highway maintenance works into 2014/15 following scheduling of contracted works, a grant reduction on the Better Bus Scheme of 0.5m budget reduction of 0.135m for 20mph scheme as the costs will be met from the revenue budget the re-profiling of 0.131m for 20mph scheme the Hyde Rd scheme being re-profiled by 0.320m into 2014/15. the Bus Priority schemes being re-profiled by 0.743m into 2014/15 and 0.714m into 2015/16 in line with contracted programme. schemes under 500k being re-profiled in total by 1.083m into 2014/15 including the following: a. the works on New Islington Free School road totalling 0.374m being re-profiled into 2014/15 due to delays in planning approval and contracting works. b. Birley Fields residential parking being re-profiled by 0.250m into 2014/15 due to start date on site now being April c. schemes funded by Access to Regional Cycle Centre totalling 0.143m being re-profiled into 2014/15. d. schemes funded by Cycle Casualty reduction grant totalling 0.2m being re-profiled into 2014/

15 45. The Highways planned maintenance programme totals 4.311m in 2014/15 to deliver maintenance resurfacing works on the highest priority ranked schemes and includes 0.7m carry forward from 2013/ The scheme approved in to widen Hyde Road included 2.417m pinch point grant and 0.837m match funding from highways maintenance budget. 47. There has been an addition of 0.3m in 2014/15 for Albert Square paving and drainage works funded from borrowing, this is included in schemes under 500k. Environment & Operations Programme 48. Investment in Street Lighting and waste collections will ensure that the Council maintains safe, economic and efficient services. The programme is summarised in the table below. 2013/ / / / / /17 Revised Forecast Variance CCTV Bus Lane and Parking Cameras CCTV Enforcement Bus Lane / Parking Harpurhey Reservoirs Regeneration Waste & Recycling Service Changes Waste - Weekly Collection Support Scheme 2, ,800 1, City Centre Litter Bins Street Lighting PFI ,750 10,750 11,250 Total Environment & Operations Programme 2,951 1,125-1,826 12,650 10,750 11, The Street Lighting project reported elsewhere on the agenda requires a capital investment of 32.75m over a three year period which has been added to the programme. This will be funded from MCC borrowing and assumes a 15 year payback period for borrowing charges from estimated annual revenue savings of c 3m. 50. Manchester secured 2.47m Weekly Collection Support Scheme funding from CLG as this was a non ringfenced grant 2m was allocated to capital in 2013/14 to be used for acquisition of additional containers, vehicles and associated intensive communications and 0.470m was allocated to the revenue programme. The forecast expenditure in 2013/14 has reduced to 0.2m and 1.8m has been re-profiled into 2014/ An increase to the capital budget of up to 500k for Litter Bin Procurement was approved in November 2013 profiled as 400k in 2013/14 and 100k in 163

16 2014/15, funded by MCC resources from the Clean and Green Fund. 52. The reduction in the Environment & Operations Programme in 2013/14 is due to the CCTV Bus Lane and Parking Cameras reduction of 0.026m due to contract costs savings following market testing. Neighbourhood and Strategic Development Programme 53. The Neighbourhood and Strategic Development capital programme comprises investment in the Leisure Centre and Library programme and a number of strategic projects including Beswick Village, First Street Cultural Centre and Alexandra Park, The Digital Centre programme, the Asset Management Programme and Strategic acquisitions. 54. The Leisure, Culture and Library Programme is summarised in the table below. 2013/ / / / / /17 Revised Forecast Variance Parks Improvement Programme Alexandra Park Heritage Refurb 2,169 2, , Alexandra Park Sport Project Heaton Park Free Swimming Initiative Hough End Leisure Centre ,101 2,615 0 Levenshulme Leisure Centre ,834 2,500 0 Ronald Johnson Redevelopment Longsight Cricket Club City Centre Play Area Wythenshawe Park Tennis Ten Acres Artificial Grass Pitch Total Leisure Programme 5,429 5, ,441 5,115 0 First Street Cultural Facility 15,858 10,968-4,890 12, Manchester Art Galleries Expansion & Completion of Scope MAG Revolving Door Total Cultural Programme 15,976 11,086-4,890 12, Library & Learn Centre - Higher Blackley Longsight Library Refurb Central Library Wolfson Award Hulme Library Relocation Library Refresh Children's Library Fit-Out Barlow Moor Outreach Library Total Library Programme 1,286 1, The following schemes have been added to the Parks Improvement programme in 2014/15 Crumpsall Park 0.050m, Heaton Park 0.050m and 164

17 Broadhurst Park 0.015m. They are all funded by external contributions. The Wonderland Park and Alexandra Park improvement works have been reprofiled and 0.138m has slipped into The approved budget for the regeneration of Alexandra Park was made up of 2.2m of Heritage Lottery funding and 1.996m of Council match funding. The forecast spend in 2013/14 has reduced by 0.169m to 2m following reprogramming of construction works. The scheme is due to be completed in 2014/15 within the remaining budget of 1.847m. Spend in previous years totalled 0.349m. 57. The 2013/14 three year capital programme included provision for the development of new Leisure facilities on sites at Levensulme and Hough End playing fields; the latest forecast spend on these schemes remains within budget. The facilities are scheduled to open in 2015/ There is 5m Arts Council grant and 21.5m of Council match funding in the current programme for the First Street Cultural Centre. Due to slippage on the construction of the concrete frame, the scheme has been re-profiled. 59. The forecast spend of 1.287m on the Library programme remains in line with budget for 2013/14. This includes delivery of the following schemes: Barlow Moor Outreach Hulme Library relocation Children s Library fit out the Wolfson Award contribution to Central Library. The Library refresh programme which is forecast to spend 0.07m in 2013/14 and has a budget of 0.230m in 2014/ The Regeneration and Corporate Property programme is summarised in the table below and detailed in Appendix 1. The programme has increased by m due to the following; 0.270m for the development of Fujitsu Building funded by grant 0.456m for Beswick Leisure Centre funded by borrowing 17m for Strategic Acquistions funded from Capital Fund 6m for Asset Management Programme funded from Capital receipts 2013/ / / / / /17 Revised Forecast Variance New East Manchester Programme 1,438 1, North Area Partnership Programme South Manchester Partnership Co-Op Group Estate - Highways 1, Co-Op Group Estate - Public Realm 1,500 1, ,100 1,228 0 Former Royal Eye Hospital 2,000 2,

18 2013/ / / / / /17 Revised Forecast Variance Irk Valley Improvements City Fringe Regeneration St Michael's Flags, Angel Meadows St Marks Church Yard One Central Park (Sharp 2) 3,723 2,000-1,723 1, Fujitsu Building (Sharp 3) 8,743 6,620-2,123 3, Improvements to Public Realm Heald Grove Improvements to Whitworth Park The Corridor - Research and Development 1, , Levenshulme Street Market Queens Road Metrolink Station 1,750 1, On-Street Advertising and Wayfinding 1,605 1, Manchester Business Park 7,468 7, Maine Rd Centre Spot Artwork The Ideas Project Football museum at Urbis Land Registry (S2S) New Smithfield Market 3, ,850 5, Christmas Markets City Lightways 1,235 1, Eastlands (ECDL) 1,300 1, Beswick Village Community Hub 15,234 17,300 2,066 24, Belle Vue Sports Village ,280 1,890 0 Total Regeneration 53,945 48,359-5,586 53,358 3,118 0 Corporate Property Programme Asset Management Programme 7,168 5,700-1,468 8,011 8,000 7,000 Strategic Acquisitions Programme 12,028 12, ,000 5,000 5,000 Coroners (S2S) Total Corporate Property Programme 19,378 17,910-1,468 15,011 13,000 12, There have been a number of cost variations across the Regeneration programme. Savings estimated to be achieved within the New East Manchester (NEM) Programme from the BMX scheme ( 0.105m) and Miles Platting Community Hub ( 0.057m), Edison Street CPO 0.027m will be reallocated to offset a 0.194m overspend on the Football Museum which arose due to additional building works. 62. The Co-op project Highways budget has been reprofiled by 0.450m into 2014/15 for final contract and compensation settlements. The Public Realm project is due for completion by September 2015 and the forecast spend is now 7.1m in 2014/15 and 1.228m in 2015/ Projects to enable the further expansion and development of Manchester s Digital Sector are approved within the current capital programme. The budget 166

19 for the development of the former Fujitsu building at Wenlock Way has increased by 0.270m in 2014/15 funded from additional grant and the scheme has been re-profiled by 2.123m into The development in One Central Park has been re-profiled by 1.723m into A two year grant allocation was awarded to MCC; starting in 2013/14 of 2m from the Regional Growth Fund by the department for Business, Innovation and Skills (BIS) for the creation of a research and development related employment grant scheme in The Oxford Corridor area. The capital element of the grant is 1.960m. The forecast drawdown in 2013/14 is 0.5m with the remainder of 1.460m now due to be spent in 2014/ An allocation of 5.550m for the development of New Smithfield Market was added to the 2013/14 budget in October. This was funded by 1.399m grant, 0.870m capital receipts, 1.250m borrowing and 2.031m from the Capital Fund. The grant conditions for delivery of the scheme have changed enabling the programme to be delivered over a more realistic timeframe. As a result the programme has been revised. The forecast spend in 2013/14 has reduced by 2.85m and the scheme has been re-profiled into 2014/ An allocation for the development of Beswick Community Hub was added to the 2013/14 budget for: the construction of a new Sixth Form College ( 10.2m) a Leisure Centre ( 8.7m) Rugby pitch ( 0.34m) The Institute of Sports Science and Sports Medicine ( 13.95m) Retail shops ( 1.250m) Public Realm works ( 6.75m). 67. The latest forecast spend for 2013/14 shows acceleration of 1.4m on the Leisure Centre, 2.7m on the Sixth Form College and a reduction of 1.7m for the Institute which has been re-profiled into 2014/15. The total programme has increased by 0.456m met from prudential borrowing funded from the annual MCFC Stadium rental through the Eastlands Reserve. The revised expenditure profile is therefore 17.3m in 2013/14, 24.36m in 2014/ The forecast spend for 2013/14 Asset Management Programme (AMP) is 5.7m m will slip into 2014/15 in line with the latest programming of works following design. There has also been a virement of 0.457m to the Town Hall project for works completed on the Council Chamber, Committee Room and link bridges. 69. The 2014/15 programme of works will be prioritised by Corporate Property and Capital Programme Division following a number of conditions surveys and approval of the detailed programme is delegated to The City Treasurer in consultation with Executive Member for Finance and Human Resources. 167

20 70. The new three year programme includes a budget increase in 2016/17 of 6m funded from capital receipts. 71. An allocation for commercial and development acquisitions and demolition costs totalling 12m was included in the Strategic Development portfolio budget in 2013/14. This was funded from the New Homes ( 4.7m) and Capital Fund ( 7.3m). The forecast spend remains within budget. 72. There is a new budget allocation included in the programme for strategic acquisitions of 7m in 2014/15, 5m in 2015/16 and 5m in 2016/17 funded from Capital Fund. 73. Two new projects have been approved since the October report to Executive by the Treasurer and Executive Member for Finance and Human Resources under delegated authority a Land Registry scheme for 0.185m and a Coroners project for 0.182m both are forecast to spend in Education and Schools 74. Capital investment for Education and Schools over the last five years has been focused on responding to an unforeseen surge in primary pupil numbers. Children s Services provided an update to Executive in January on the implementation of the school organisation plan and capital investment strategy. This strategy will ensure an appropriate alignment between population demographics, school planning and the Council s short, medium and longer term plans for housing development and other regeneration initiatives, to ensure that high quality schools remain at the heart of the Councils Community Strategy. 75. The Government has recognised the scale of the challenge facing Local Authorities in meeting the demand for school places; as outlined in the report to Executive in January, Manchester has been allocated the following Basic Need capital funding to cover the cost of creating additional accommodation to meet the extra capacity needs and these budgets have been added to the programme. 2014/ m 2015/ m 2016/ m 76. Additional Targeted Basic Need Funding was announced in the autumn statement. The funding is targeted to provide additional support to those local authorities experiencing the greatest pressure on places through the funding of new academies and free schools, as well as enabling investment to expand good and outstanding schools with high levels of demand. Manchester has been allocated 4.569m and the budget has been added to the programme and is intended to be used to build a Primary School in Harpurhey. 77. A further capital allocation has been received for Demographic Growth following successful applications for Xaverian College of 0.218m and North 168

21 Ridge High School of 1.657m and this has also been added to the 2014/15 budget. 78. The Basic Needs programme including new grant allocations outlined above is m; m in 2014/15, m in 2015/16 and m in 2016/ A capital grant has also been allocated by DfE for development works on school kitchens for 0.846m and this has been added to the 2014/15 budget (this excludes a VA school allocation 0.404m). Children s Services will engage with Schools and Capital programme team to develop an agreed programme of works. 80. The Schools Capital Maintenance grant in 2014/15 has been confirmed as 3.597m (this excludes 1.8m allocation for VA schools) and a programme of works will be agreed through the Gateway Board. 81. The Schools Capital Maintenance programme including new grant allocations outlined above is 4.885m in 2014/ The Education and Schools programme is summarised in the table below and detailed in Appendix / / / / / /17 Project Name Revised Forecast Variance Primary School Rebuilding Programme Basic Need Programme Basic Need - Allocated 23,341 20,294-3,047 28,924 7,690 0 Basic Need - Unallocated ,546 21,078 18,619 Additional Grant for School Kitchens - Free School Meals School Capital Maintenance Programme School Capital Maintenance Programme 3,357 2, Schools Capital Maintenance - unallocated 1, ,243 3, Sensory Support - Relocate Lancasterian Abraham Moss Centre Redevelopment 7,763 7, EIG grant / Short Breaks Early Education for Two Year Olds 1, ,478 1, Building Schools for the Future 11,447 5,341-6,106 5,186 2,410 2,595 Total Children's Services 50,339 36,658-13,681 69,305 31,178 21, The Primary School Rebuilding Programme is due to be completed in 2013/14 and forecast expenditure remains 0.785m, with savings of 48k for Varna Street based on the latest profile being offset by a forecast overspend on Pike Fold Primary School. 169

22 84. The following schemes have been added to the basic needs programme since the October Capital monitoring report and further detail of approved schemes is detailed in appendix 1: Mauldeth Road 1.2m Crosslee 1m Ashbury Meadow 1.95m Cavendish 3.3m 85. In addition, the following new schemes have been added to the Basic Needs Programme since the October monitoring report to reflect basic need grant contributions to schools delivered via the Priority School Building Programme by the EFA: Camberwell Park 0.310m Plymouth Grove 0.130m in 2014/15 Stanley Grove expansion 0.808m in 2014/15 Gorton Mount new build 6.740m of which 2m is maintenance grant funded and the balance is basic needs grant. 86. The basic need programme has been re-profiled as the delivery programme has been developed, scheme costs have been confirmed with the appointment of contractors or estimated costs are updated as designs are progressed. The forecast spend for the approved programme in 2013/14 has decreased by 3.42m to m and been reprofiled into 2014/ The Basic Needs programme including new grant allocations is m, Of this 36.6m has been allocated to approved schemes. 88. A number of basic needs schemes are currently in the design and option appraisal process and as scheme costs are confirmed they will be reported to Executive within monitoring reports and the unallocated basic need grant will reduce accordingly. 89. The forecast expenditure for Approved Maintenance Schemes in 2013/14 is 2.361m and 0.959m in 2014/15. The remaining unallocated grant is 0.326m and the confirmed new allocation is 3.6m. 90. The schools maintenance programme has been re-profiled for cost variations between schemes and allocations have been made for maintenance works within basic needs schemes. Additional schemes approved this quarter include window replacement works at St Margaret CE for 0.310m. 91. The Education programme for Two Year Olds has been re-profiled following a review of funding bid applications and the first drawdown of grant is expected in February. The forecast position for 2013/14 is now 250k, the remaining 1.478m grant will be spent in 2014/ The grant received for Short Breaks for disabled children of 0.375m has been reprofiled by 0.340m into 2014/15 due to delays in the scheme 170

23 development. The schemes reprofiled are Grange ( 0.1m), Camberwell Park ( 0.14) and the Birches ( 0.1m) which is reported within the Basic Needs Programme. 93. Abraham Moss Centre redevelopment is due to complete in 2014/15 and 0.2m has been reprofiled for final works. 94. The Building Schools for the Future ICT programme is forecast to spend 5.341m in 2013/14. The remaining budget of 10.2m has been re-profiled based on the estimated drawdown by Schools. Corporate Programme 95. The Corporate capital programme comprises the Greater Manchester Loan Fund, the Town Hall Complex and ICT investment 96. The Corporate programme is summarised in the table below and has increased by 4.8m due to additional works funded by TfGM on St Peter s Square. 2013/ / / / / /17 Project Name Revised Forecast Variance Corporate Services Programme Town Hall Complex Transformation Programme 42,396 42, ST Peters Square 14,122 11,622-2,500 7, Greater Manchester Loan Fund 2,700 1,500-1,200 4,200 4,200 2,100 Total Corporate Services 59,218 55,975-3,243 11,600 4,200 2,100 ICT Capital Programme PROGRAMME - ICT Transformation ICT Business Transformation 2, ,750 6,788 3,742 0 Flexible & Agile Working Library Management System Hybrid Mail PROGRAMME - Applications CRM - Phase Information Strategy Project SAP Roll Out Single Point of Failure PROGRAMME - Desktop Digital Workplace Strategy 1,867 1, PROGRAMME - Infrastructure Corporate Digital Telephony Data Centre Provisioning 1,277 1, Wider Area Network Redesign 1, CPD Town Hall Extension ICT Requirements Broadband 1, ,213 6,800 0 Broadband Connection Vouchers Total ICT 10,664 7,292-3,372 12,065 10,