Manchester City Council Report for Resolution

Meeting Executive Date 26 July 2006 Subject Capital Programme - Proposed Increases Report of Chief Executive and the City Treasurer

PURPOSE OF REPORT

To inform members of requests to increase the capital programme. To seek approval for those schemes that can be approved under authority delegated to the Executive and to make recommendations to the City Council for proposals that require specific Council approval.

RECOMMENDATIONS

Members are requested to recommend that the City Council approve:

1. Chief Executive’s – Restoration Phase 1: To increase the capital budget by £3,802,000 (£1,513,000 in 2006/07 and £2,289,000 in 2007/08), funded by £3,000,000 Heritage Lottery Fund, £450,000 English Heritage, £265,000 BBC Restoration Fund and £87,000 City Council resources.

2. Chief Executives – Maine Road Development: To increase the capital budget by £359,000 in 2006/07, funded by City Council resources

3. Housing – Hattersley Housing Stock Transfer: To increase the capital budget by £931,000 in 2006/07, funded by capital receipts.

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Members are requested under powers delegated to the Executive to approve the following:

4. Chief Executive’s New East – Additional works to the Canal Arm at site: To increase the capital budget by £250,000 in 2006/07, funded from ERDF grant.

5. Chief Executive’s New East Manchester – additional works: To increase the capital budget by £300,000 in 2006/07, funded by NWDA grant.

6. Children’s Services – Youth Capital Fund (Youth Matters): To increase the capital budget by £62,000 in 2006/07, funded by Supported Capital Expenditure SCE(R).

7. Housing – Private Sector Housing Alleygating: To increase the capital budget by £335,000 in 2006/07, funded by Crime and Disorder Partnership (CDRP) grant.

8. Chief Executive’s – Longsight Environmental Improvements: To increase the capital budget by £106,000 in 2006/07, funded by £76,000 QBC and £30,000 ERDF grants.

9. Chief Executive’s – Burnage Environmental Improvements Phase 2: To increase the capital budget by £297,000 in 2006/07, funded in full by Section 106 contribution.

10. Environment and Operations – Exchange Square Improvements: (a) To increase the capital budget by £395,000 in 2006/07, funded initially by £375,000 Capital Fund resources to be replaced by Section 106 contributions as the long term funding source, plus £20,000 external contributions. (b) To note that in the event of a shortfall of Section 106 resources this would result in the shortfall remaining charged to the Capital Fund.

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Financial Consequences for the Revenue Budget

If the above capital budget increases are approved they will create only very minor revenue consequences which can be financed from existing revenue budgets.

Financial Consequences for the Capital Budget

The recommendations in this report, if approved, will increase the capital budget by £4,548,000 in 2006/07 and £2,289,000 in 2007/08, financed by £991,000 Government grant, £62,000 SCE(R), £1,290,000 capital receipts, £672,000 section 106 contribution, £87,000 other City Council resources and £3,735,000 contributions.

Contact Officers

Howard Bernstein 234 3006 [email protected] Richard Paver 234 3564 [email protected] John Guest 234 3406 [email protected] Dave Channon 234 3292 [email protected]

Background Documents

Requests from service departments and area regeneration teams and associated papers are held on file in Room 132.

Wards Affected:

Various

Implications for: Anti-Poverty Equal Opportunities Environment Employment

Yes Yes Yes Yes

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Background

1. In February each year the Executive receives a report on the capital budget for the forthcoming three financial years, and approves a series of recommendations to make to the City Council. The City Council’s resolutions on these recommendations constitute the approval of the three year capital programme for . Proposals for the 2006/07 Capital Budget were presented to the Executive on 15th February 2006.

2. Further requests for increases to the current years capital budget (i.e. not covered by the current 3 year capital budget) have been identified. This report outlines those requirements.

3. A summary of the requests for additions to the programme is shown in Appendix 1 and represents requests received since the previous report to the Executive.

Proposals Requiring Specific Council Approval

4. Chief Executive’s – Victoria Baths Restoration Phase 1 is the reinstatement of the external fabric of the Turkish Baths. These works are to be undertaken by the Trust and support is provided by the City Council by means of capital grant. An increase to the capital budget of £3,802,000 (£1,513,000 in 2006/07 and £2,289,000 in 2007/08) is requested, funded by £3,000,000 Heritage Lottery Fund, £450,000 English Heritage contribution, £265,000 BBC Restoration Fund and £87,000 City Council funding.

5. Chief Executive’s – Maine Road Development. Additional remediation work is required to be carried out in order to protect the value of the land because the extent of contamination on the site has proved to be significantly greater than the original forecast. The total revised estimated cost of remediation works has risen to £1,469,000. The current capital budget contains approval of £1,110,000 therefore a capital budget increase of £359,000 is requested. If the additional works are not undertaken there will be a corresponding reduction in the saleable value of the site.

The £359,000 comprises £215,000 specified works, £44,000 fees and marketing costs and in addition the consultants recommend that a further contingency sum of £100,000 be made. All spending requirements and in particular the contingency will be monitored with extreme care to ensure that any application is only on essential remediation work. An increase to the capital budget of £359,000 in 2006/07 is requested, funded by City Council resources.

6. Housing – Hattersley Housing Stock Transfer. The increase is in regard to compensation, loss, disturbance and demolition of privately owned and tenanted properties within designated redevelopment sites on the Hattersley/Mottram estate. An increase to the capital budget of £931,000 in 2006/07 is requested, funded by capital receipts.

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Proposals Not Requiring Specific Council Approval

7. Chief Executive’s New East Manchester – Additional works are required to the Canal Arm at site. The work involves the acquisition of the Ancoats Canal Basin from British Waterways at a cost of £250,000. An increase to the capital budget of £250,000 in 2006/07 is requested, funded by ERDF grant.

8. Chief Executive’s New East Manchester – Gorton Monastery additional works. The budget increase is for the payment of a grant to the Gorton Monastery Trust, funded 100% by NWDA, to cover costs of screening, site treatment, scaffolding and temporary roof structure. An increase to the capital budget of £300,000 in 2006/07 is requested, funded by NWDA grant.

9. Children’s Services – Youth Capital Fund (Youth Matters). This fund is to support young people’s personal and social development. Government has allocated an additional £62,000 to allow increased investment in this programme. This is over and above the original figure of £236,000 that was introduced into the capital budget following March 2006 Executive. An increase to the capital budget of £62,000 in 2006/07 is requested, funded by SCE(R)

10. Housing – Private Sector Housing Alleygating. The work is to achieve safer and sustainable neighbourhoods and includes gating, access enforcement and access security. An increase to the capital budget of £335,000 in 2006/07 is requested, funded by Crime and Disorder Partnership (CDRP) grant.

11. Chief Executive’s – Longsight Environmental Improvements. Additional costs have arisen due to unforeseen statutory requirements, accommodation works and legal and supervision fees. Additional funding has been identified to cover the additional costs. An increase to the capital budget of £106,000 in 2006/07 is requested, funded by £76,000 QBC and £30,000 ERDF grants.

12. Chief Executive’s – Burnage Environmental Improvements Phase 2. Work includes new improved footpaths, street furniture, alley gating and tree planting. The purpose of the project is to support a neighbourhood shopping parade as a viable neighbourhood asset. An increase to the capital budget of £297,000 is requested, funded by Section 106 contribution.

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13. Environment and Operations – Exchange Square Improvements. The proposed works are intended to complete the original design now that work on the Arndale North project has finished. They will include the provision of a visual link of solar powered LED’s between the two sides of Corporation Street the installation of planters in front of key outlets and modification works to the pump room. The City Council will finance the majority of the works. An increase to the capital budget of £395,000 in 2006/07 is requested. £375,000 will be funded initially by Capital Fund resources to be replaced by Section 106 contributions as the long term funding source and the balance of £20,000 will be financed by external contributions towards the cost of the planters.

In the event of insufficient Section 106 resources being available any funding shortfall would be borne by the Capital Fund.

Prudential Performance Indicators

14. If the recommendations in this report are approved, the capital budget increases will be Non-HRA £ (£3,617,000 in 2006/07 and £2,289,000 in 2007/08), and HRA £931,000 in 2006/07.

There is no requirement for unsupported borrowing therefore no impact on the City’s Council Tax.

Conclusions

15. The capital budget will increase by £4,548,000 in 2006/07 and £2,289,000 in 2007/08 if the recommendations in this report are approved. The addition of these schemes to the programme, as summarized in Appendix 1, will enhance service delivery council wide and will be financed by £991,000 Government grant, £62,000 SCE(R), £1,290,000 capital receipts, £672,000 section 106 contribution, £87,000 City Council resources and £3,735,000 contributions.

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Implications for Key Council Policies

Employment

The Capital Programme provides opportunities for the construction industry to bid for schemes that could provide employment opportunities at least for the duration of contracts.

Equal Opportunities

All proposals have been drawn up in full awareness of Council policy on equality.

Environment

These proposals are all compliant with the objective of creating a healthy and safe environment for users of Council facilities.

Sir Howard Bernstein Chief Executive

Richard Paver City Treasurer

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