Finance and Performance Committee

Agenda

 

 

Notice of Meeting:

An ordinary meeting of the Finance and Performance Committee will be held on:

 

Date:                                     Wednesday 1 March 2017

Time:                                    9am

Venue:                                 Committee Room 1, Level 2, Civic Offices,
53 Hereford Street, Christchurch

 

 

Membership

Chairperson

Deputy Chairperson

Members

Councillor Raf Manji

Deputy Mayor Andrew Turner

Mayor Lianne Dalziel

Councillor Vicki Buck

Councillor Jimmy Chen

Councillor Mike Davidson

Councillor Anne Galloway

Councillor Jamie Gough

Councillor Yani Johanson

Councillor Deon Swiggs

 

 

23 February 2017

 

 

 

Principal Advisor

Carol Bellette

General Manager Finance and Commercial

 

Margaret Henderson

Committee Advisor

941 8185

margaret.henderson@ccc.govt.nz

www.ccc.govt.nz

Note:  The reports contained within this agenda are for consideration and should not be construed as Council policy unless and until adopted.  If you require further information relating to any reports, please contact the person named on the report.
To view copies of Agendas and Minutes, visit:
www.ccc.govt.nz/Council/meetingminutes/agendas/index

 


Finance and Performance Committee

01 March 2017

 

Terms of Reference Finance and Performance Committee

 

 

Chair

Councillor Manji

Membership

Deputy Mayor Turner (Deputy Chair), Mayor Dalziel, Councillor Buck, Councillor Chen, Councillor Davidson, Councillor Galloway, Councillor Gough, Councillor Johanson, Councillor Swiggs and an independent member to be appointed by Council

Quorum

Half of the members if the number of members (including vacancies) is even, or a majority of members if the number of members (including vacancies) is odd.

Meeting Cycle

Monthly

Reports To

Council

 

 

Responsibilities

The focus of the Finance & Performance Committee is the financial and non-financial performance of the Council and its subsidiaries.

 

The Finance and Performance Committee:

·         Seeks to enhance the Council’s accountability with the community in relation to the Council’s financial and non-financial performance

·         Promotes active citizenship, community participation and community partnerships, including participatory budgeting

·         Works in partnerships with key agencies, groups and organisations

 

The Finance and Performance Committee considers and reports to Council on issues and activites relating to:

·         The preparation and adoption of the draft and final Annual Plan and Long Term Plan (based on the strategic direction of the Strategic Capability Committee)

·         Performance  against the  Long Term Plan (LTP) and  Annual Plan (AP), including financial performance and non-financial performance including:

             medium to long term asset management

             treasury investment and borrowings

             organisational performance and capability.

·         Insurance matters including to:

          consider legal advice from the Council’s legal and other advisers,

             approve further actions relating to the issues,

             make recommendations to Council concerning formal actions.

·         Performance of a number of subsidiaries including Council Controlled Organisations (CCO). 

·         Recommendations   from   Council’s   Subcommittees,   Community Boards, the public, stakeholders and providers in relation to finance and performance.

·         Overseeing the development to the Annual Report for consideration by the Council

·         Development of the financial policy of the Council

·         Development of a Genuine Progress Indicator

 

 


Finance and Performance Committee

01 March 2017

 

Part A        Matters Requiring a Council Decision

Part B         Reports for Information

Part C         Decisions Under Delegation

 

 

TABLE OF CONTENTS

 

C       1.       Apologies.......................................................................................................................... 4

B       2.       Declarations of Interest................................................................................................... 4

C       3.       Confirmation of Previous Minutes................................................................................. 4

B       4.       Deputations by Appointment........................................................................................ 4

B       5.       Presentation of Petitions................................................................................................ 4

STAFF REPORTS

A       6.       Corporate Finance Report for the period ending 31 December 2016........................ 5

A       7.       Performance report for the six months to 31 December 2016.................................. 15

C       8.       Resolution to Exclude the Public................................................................................. 45  

 

 


Finance and Performance Committee

01 March 2017

 

 

1.   Apologies

At the close of the agenda no apologies had been received.

2.   Declarations of Interest

Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as an elected representative and any private or other external interest they might have.

3.   Confirmation of Previous Minutes

4.   Deputations by Appointment

There were no deputations by appointment at the time the agenda was prepared. 

5.   Presentation of Petitions

There were no petitions received at the time the agenda was prepared.  

   


Finance and Performance Committee

01 March 2017

 

 

6.        Corporate Finance Report for the period ending 31 December 2016

Reference:

17/142602

Contact:

Patricia Christie
Steve Ballard

Patricia.Christie@ccc.govt.nz
Steve.Ballard@ccc.govt.nz

941 8113
941 8447

 

 

1.   Purpose and Origin of Report

Purpose of Report

1.1       The purpose of this report is for the Finance and Performance Committee and Council to receive quarterly information relating to the Council's treasury and debtors risks.

Origin of Report

1.2       This report is staff generated.

2.   Significance

2.1       The decision(s) in this report are of low significance in relation to the Christchurch City Council’s Significance and Engagement Policy.

2.1.1   The level of significance was determined by the impact of the decisions on the community.

 

 

3.   Staff Recommendations

That the Finance and Performance Committee recommend to the Council that it receives the Corporate Finance report for the period ending 31 December 2016.

 

 

4.   Key Points

 

Treasury Risk versus Policy Limits

4.1       Net Debt for treasury risk management purposes is defined as Council’s borrowing (including borrowing from subsidiaries and the Capital Endowment Fund, but excluding any finance leases), less amounts on-lent to CCHL, “borrower note” investments in LGFA (explained under the table below), and cash holdings.

4.2       Movements in this Net Debt figure represent Council’s net operating and capital spending flows over the period.

4.3       At 31 December 2016, Net Debt was $868 million, a year-to-date increase of $155 million.  Key movements in the year to date have been:

a)         Repayment of $67 million to Vbase (part of Vbase’s insurance settlement, temporarily lent to Council because of the higher interest rates Council can access on term deposits).

b)        $76 million of new borrowing from LGFA, $26 million of which was on-lent to CCHL to fund its investment in Enable.

c)         $174 million reduction in cash and deposits.

 

 

 

4.4       These changes are shown in the table below:

Current Debt and Investments versus June 2016

* Borrowing from Capital Endowment Fund (CEF) – ratepayer-funded interest is paid by Council to CEF, rather than CEF investing in low-returning external investments.  $31 million is still in external investments.

* Local Government Funding Agency (LGFA) Borrower Notes – Each time Council borrows from LGFA it must invest a small proportion into a matching LGFA Note to maintain LGFA’s required capital adequacy.

 

4.5       Treasury risk positions are within policy limits, except for interest rate re-pricing.  This temporary breach was approved at the 10 March 2016 Council meeting (details below).

 

Debtors

4.6       At 31 December 2016, the debtors' balance stood at $11.9 million, $1.1 million lower than reported in June 2016. The decrease is primarily due to Resource Consenting debt which decreased by $1.0 million from $1.9 million as at 30 June to $0.9 million at 31 December 2016. General Debtors remained consistent at $8.3 million.

4.7       Debts of $79,656 has been written-off during the first half of the financial year compared to $453,193 for the 6 months ending June 2016. The significant decrease is due to the write off of $365,642 owed by companies that were placed into liquidation or receivership in the first 6 months of 2016 financial year.  Further detail is provided in paragraph 6.4 below.

 


 

5.   Treasury Report

5.1       Council manages four types of treasury risk relating to its Net Debt:

Treasury Risk

Description

Short-Term Liquidity Risk

The risk of disrupted payments and/or increased cost of funding arising from having insufficient cash and committed borrowing facilities available to meet day-to-day operating and capital requirements.

Long-Term Funding Risk

The risk of un-budgeted costs arising from difficulty in accessing term borrowing when required.

Interest Rate Re-pricing Risk

The risk of adverse variation to budget, or unacceptable variability in interest costs from one year to the next, arising from movements in market interest rates.

Counterparty Credit Risk

The risk of financial loss arising from a counterparty's inability or unwillingness to make payments to Council as they fall due.

 

Policy Snapshot

Risk Area

Policy Compliance

Liquidity

Within

Funding

Within

Interest Rate Re-pricing

Breach

Counterparty Credit

Within

 

5.2       Short-term Liquidity Risk

To ensure that on-going cash payments can be met in an orderly manner.

 

Policy Limit (LGFA Liquidity Ratio must >110%) – Within Limit

* Ratio is calculated as the sum of all three, divided by external debt
* Investments include Borrower Notes plus $29.5 million of realisable external CEF investments

 

5.3       Long-term Funding Risk

To ensure that debt maturities are spread so as to minimise re-financing risk in future years

 

Policy Limit (existing maturities only) – Within Limit

5.3.1   In practice, management considers funding risk in terms of both the re-financing of existing maturities and the need to incur new debt to meet negative operating flows, as shown in the chart below.

 

 

 

 

Council Funding Risk (current maturities plus expected future new borrowing)

* Existing maturities (blue bars) include the maturity of internal borrowing from Vbase ($49 million). 

* New Borrowing reflects 31 December 2016 projections, NOT the draft 2017/18 Plan.

 

5.4       Interest Rate Re-pricing Risk

To ensure that debt maturities are spread so as to minimise re-financing risk in future years.

 

Policy Limit – Breach

* Red bars show how much debt is at a contractually fixed rate as at each 30 June.

* Projected debt (green line) is at 31 December 2016, NOT the draft 2017/18 Plan.

 

5.4.1   The Policy breach in the financial years 2017 to 2019 has been caused by the significant fall in projected debt – the level of hedging has not changed since December 2014.  The breach was noted and ratified at the 10 March 2016 Council meeting.

5.4.2   Management of the over-hedged position is a matter of on-going discussion with Council’s External Treasury Advisor (PricewaterhouseCoopers).

5.4.3   Key variables in the debt profile going forward are the amount and timing of Capital Release (receipt of which will lower debt), and Council’s ability to deliver the capital programme (any under-spending of which will also lower debt).

 

5.5       Credit Risk

To minimise risk of loss due to a counterparty's inability to make payments to Council when due.

 

Policy Limit – Within Limit

 

* Derivative exposures are calculated as the current market value plus a buffer to reflect potential future value movements.  If the total exposure for any bank is negative (i.e. Council would pay the bank upon termination), then a zero exposure is recorded.

* Additional credit limits (highlighted orange) were approved at the 10 March Council meeting.  These higher limits simplify the efficient investment of current cash balances, and will revert to normal limits from 1 July 2017.

 


 

6.   Debtors Report

6.1       At 31 December 2016, the debtors' balance stood at $11.9 million, $1.1 million lower than reported in June 2016.

6.1.1   The decrease is primarily due to Resource Consenting debt which decreased by $1.0 million from $1.9 million as at 30 June to $0.9 million at 31 December 2016. General Debtors remained consistent at $8.3 million.

6.2       The significant debtors within the General Debtors balance of $8.3 million include Vbase Limited and Land Information New Zealand. These two debtors account for approximately $5.8 million of the balance.

Overdue Debtors

6.3       Overdue debtors, (older than 92 days), have decreased by $0.075 million to $0.845 million (7.09 per cent of total debt compared to 7.08 per cent reported in June 2016). This is covered in more detail in the Overdue Debtors report in the public excluded agenda.

Debts Written off

6.4       Debts of $79,656 have been written-off during the first half of the financial year compared to $453,193 for the 6 months ending June 2016. The detail is below:

6.5       Regulatory debts written off during the period include $11,500 of resource consent fees approved by Council on 14 July 2016. Sundry debtors written off include $14,309 of service fees approved by Council on 8 September.

6.6       The significant decrease in debt written off compared to the same period in 2015 relates to the $365,642 owed by companies that have been placed into liquidation or receivership.  These debts were written off following Council approval with the majority being provided for at 30 June 2015.  A summary report is provided in Attachment A.

6.7       The main reason for the write-off of residential rents continues to be that debtors cannot be located. 

6.8       The library debt written off comprises a large number of relatively small amounts where debtors cannot be located and/or the individual debt is considered to be uneconomical to collect.  This reflects the cost associated with the Libraries current lending policy which allows customers to borrow up to 30 books at a time.  A review has been requested through Internal Audit to ensure that proper process is being followed.

 

 

Attachments

No.

Title

Page

a

Debt Written Off - Summary - 31 December 2016

13

 

 

Confirmation of Statutory Compliance

Compliance with Statutory Decision-making Requirements (ss 76 - 81 Local Government Act 2002).

(a) This report contains:

(i)  sufficient information about all reasonably practicable options identified and assessed in terms of their advantages and disadvantages; and

(ii) adequate consideration of the views and preferences of affected and interested persons bearing in mind any proposed or previous community engagement.

(b) The information reflects the level of significance of the matters covered by the report, as determined in accordance with the Council's significance and engagement policy.

 

Signatories

Authors

Andrea Olsen - Financial Accountant

Steve Ballard - Manager Funds and Financial Policy

Patricia Christie - Manager External Reporting and Governance

Approved By

Diane Brandish - Head of Financial Management

Carol Bellette - General Manager Finance and Commercial (CFO)

  


Finance and Performance Committee

01 March 2017

 

PDF Creator


Finance and Performance Committee

01 March 2017

 

 

7.        Performance report for the six months to 31 December 2016

Reference:

17/76074

Contact:

Diane Brandish

diane.brandish@ccc.govt.nz

941 8454

 

 

1.   Purpose and Origin of Report

1.1       The purpose of this report is for the Finance and Performance Committee and Council to be updated on service delivery, financial and Capital Works Programme performance results for the first six months of the 2016/2017 financial year.

 

2.   Staff Recommendations

That the Finance and Performance Committee recommend that the Council:

1.         Receive the information in the Performance Report.

 

3.   Key Points

3.1       The Council’s operational financial results for the first six months are positive with a year to date net underspend.  As previously signalled the full year savings target will not be met, but this shortfall will be offset by increased revenue. At this stage a small $1.1m surplus is forecast for year end. 

3.2       Capital expenditure of $296 million was delivered during the first half of the year, $9 million less than budgeted. The current financial forecast is for 2016/17 delivery to be $39.7 million ahead of budget meaning budget will need to be brought back from next year and funds borrowed earlier. We don’t think that this timing difference will have a material effect on the operating result. 

 

4.   Context/Background

Levels of Service

4.1       The December data indicates that 91.3 percent of Levels of Service performance targets are forecast to be achieved in 2016/17. This result is well above the 85 percent set as the overall Christchurch City Council objective.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.2       Attachment A lists details of those Levels of Service where forecasts indicate that the target will not be met, or will require corrective action to be achieved.

 

Financial Performance Summary

 

Year to Date Results

Forecast Year End Results

After Carry Forwards

$m

Actual

Plan

Var

Forecast

Plan

Var

Carry Fwd

Result

Operational

 

 

 

 

 

Expenditure

281.3

277.2

-4.1

553.0

550.4

-2.6

7.8

-10.4

Revenues and Funding

-263.4

-252.8

10.6

-516.0

-500.4

15.6

4.1

11.5

Ratepayer financing required

17.9

24.4

6.5

37.0

50.0

13.0

11.9

1.1

 

 

 

 

 

 

 

Capital

 

 

 

 

 

 

Programme Expenditure

296.0

384.1

88.1

657.8

695.7

37.9

32.1

5.8

Less planned Carry Forwards

-

-79.1

-79.1

-64.0

-141.6

-77.6

-77.6

-

Expenditure to be financed

296.0

305.0

9.0

593.8

554.1

-39.7

-45.5

5.8

Revenues and Funding

-246.1

-336.7

-90.6

-455.5

-485.6

-30.1

-4.6

-25.5

Ratepayer borrowing

49.9

-31.7

-81.6

138.3

68.5

-69.8

-50.1

-19.7

 

 

 

 

 

Total Ratepayer financing required

67.8

-7.3

-75.1

175.3

118.5

-56.8

-38.2

-18.6

 

4.3       Key commentary on operational and capital year to date results are given below.  This is followed by a section for each area giving further details.  A view of the Council’s financial results by Group of Activity is provided in Attachment B.


 

4.4       Operational expenditure is higher than budget year to date, as a result of unspecified operational savings not found ($3.9 million).  The unfavourable forecast variance is due to the expectation that $8.9 million of unspecified operational savings that were included in the Annual Plan will not be found this year without reducing levels of service. Work to identify these savings is still ongoing and an additional $2.5 million has been identified and built into the 2017/2018 Draft Annual Plan.  The balance will be addressed as part of the next Long Term Plan.

4.5       Operational revenues and funding are higher than budget year to date due to a combination of higher dividends and interest, rates and parking revenue. These variances are forecast to be permanent and increase slightly by year end. Clause 4.10 to 4.14 provides details.

4.6       Capital expenditure is below budget year to date due to timing differences, but is forecast to be $39.7 million ahead of budget by year end due mainly to facilities rebuild work.  Budget bring backs from 2017/18 of $45.5 million have been signalled to cover this advance spending.  Clauses 4.16 and 4.17 provides details.

4.7       Capital revenues/recoveries are below budget year to date mainly due to timing of CCHL capital release.  An unfavourable variance is forecast for the year.  Clause 4.20 to 4.25 provides details.

4.8       Required borrowing is currently $75.1 million more than budget and forecast to be $56.8 million higher at year end, ($40.0 million of which is due to the changed CCHL capital release). $38.2 million is signalled as a budget bring back (timing) resulting in a permanent difference of $18.6 million.

 

Operational

 

 

Year to Date Results

Forecast Year End Results

After Carry Forwards

$m

Actual

Plan

Var

Forecast

Plan

Var

C/F

Result

Personnel costs

93.8

91.9

-1.9

182.8

180.8

-2.0

-

-2.0

Less recharged to capital

-17.1

-17.1

-

-34.7

-35.2

-0.5

-

-0.5

Grants and levies

28.0

28.7

0.7

43.2

47.8

4.6

6.3

-1.7

Operating costs

84.4

82.6

-1.8

172.6

169.3

-3.3

1.5

-4.8

Maintenance costs

50.0

51.0

1.0

107.4

107.8

0.4

-

0.4

Debt servicing

42.2

40.1

-2.1

81.7

79.9

-1.8

-

-1.8

Expenditure

281.3

277.2

-4.1

553.0

550.4

-2.6

7.8

-10.4

 

 

 

 

 

Operating revenue

-72.4

-68.3

4.1

-143.2

-137.5

5.7

-

5.7

Interest and dividends

-49.2

-44.4

4.8

-89.9

-81.5

8.4

3.9

4.5

Rates income

-211.2

-209.9

1.3

-422.1

-421.1

1.0

-

1.0

Revenue

-332.8

-322.6

10.2

-655.2

-640.1

15.1

3.9

11.2

 

 

 

 

 

 

Net Cost

-51.5

-45.4

6.1

-102.2

-89.7

12.5

11.7

0.8

Funding Sources

 

 

 

 

Transfers from Special Funds

-3.1

-2.7

0.4

-6.4

-5.9

0.5

0.2

0.3

Less Rates reqd for capex / debt

72.5

72.5

-

145.6

145.6

-

-

-

Funds not available for Opex

69.4

69.8

0.4

139.2

139.7

0.5

0.2

0.3

 

 

 

 

 

Ratepayer financing required

17.9

24.4

6.5

37.0

50.0

13.0

11.9

1.1

 

4.9       Operational expenditure year to date is $4.1 million higher than budget, with a forecast of $10.4 million over at year end after adjusting for carry forwards. Other than the $8.9 million covered under clause 4.4 there are no other material variances.

 

4.10    Operating revenues for Council activities are $4.1 million higher than budget year to date mainly due to unplanned Crown contributions for Three Waters ($2.4 million), and increased parking revenue ($1 million).  A forecast favourable result of $5.7 million is largely made up of the Crown contributions (above), increased parking revenue ($1.3 million), and trade waste and excess water charges ($1m).

4.11    Higher interest and dividends revenue results from a $3.9 million Transwaste dividend being received a year earlier than budgeted and higher interest revenue due to investments of the remaining insurance proceeds.  

4.12    Rates revenue is proving to be higher than budget and the forecast has been updated.

4.13    Special fund drawdowns are slightly higher than budget year to date due to unplanned grant payments to Ōtautahi Community Housing ($0.9 million), offset by lower capital endowment fund drawdowns ($0.6 million). The forecast is higher than budget due to lower interest on fund balances.

4.14    The residual net borrowing for operational costs is $6.5 million under budget year to date, and forecast to be $1.1 million under budget at year end after proposed carry forwards are accounted for.

4.15    The net cost of individual activities are shown in Attachment B.


 

Capital Programme

 

 

Year to Date Results

Forecast

After Carry Forwards

$m

Actual

Plan

Var

Forecast

Plan

Var

C/F

Result

Three Waters

26.6

45.2

18.6

80.8

85.9

5.1

4.7

0.4

Roading and Transport

22.1

19.9

-2.2

75.0

65.9

-9.1

-10.7

1.6

Strategic Land

0.1

-

-0.1

12.0

6.5

-5.5

-5.5

-

IM&CT

7.4

11.5

4.1

17.8

20.0

2.2

2.0

0.2

Other

10.4

15.7

5.3

40.2

53.9

13.7

12.9

0.8

Works Programme

66.6

92.3

25.7

225.8

232.2

6.4

3.4

3.0

 

 

 

 

 

Infrastructure - SCIRT

142.3

150.9

8.6

171.2

171.2

-

-

-

Infrastructure - Non SCIRT

31.6

57.9

26.3

109.4

104.6

-4.8

-5.4

0.6

Transitional / Recovery Projects

6.0

6.9

0.9

15.0

16.0

1.0

0.7

0.3

Facilities Rebuild

48.9

70.4

21.5

132.8

160.8

28.0

27.3

0.7

Rockfall and Improvmt Allowce

0.6

5.7

5.1

3.6

10.9

7.3

6.1

1.2

Rebuild Programme

229.4

291.8

62.4

432.0

463.5

31.5

28.7

2.8

 

 

 

 

Gross Capital Spend

296.0

384.1

88.1

657.8

695.7

37.9

32.1

5.8

Planned Carry forwards

-

-79.1

-79.1

-64.0

-141.6

-77.6

-77.6

-

Funded Capital Spend

296.0

305.0

9.0

593.8

554.1

-39.7

-45.5

5.8

 

 

 

 

 

Development Contributions

-17.3

-8.7

8.6

-26.3

-17.4

8.9

-

8.9

Less DC Rebates

3.0

7.4

4.4

8.6

14.7

6.1

5.5

0.6

DPMC Recoveries

-9.5

-44.5

-35.0

-44.5

-44.5

-

-

-

NZTA Capital Subsidy

-87.2

-62.8

24.4

-117.3

-125.6

-8.3

-13.8

5.5

Vbase recovery - Town Hall

-13.6

-16.3

-2.7

-33.3

-29.2

4.1

4.1

-

Capital release / Special dividends

-71.0

-151.9

-80.9

-116.0

-151.9

-35.9

-

-35.9

Misc Capital Revenues

-1.3

-0.7

0.6

-1.9

-1.4

0.5

-

0.5

Asset Sales

-0.1

-0.2

-0.1

-6.3

-11.3

-5.0

-

-5.0

Capital Revenues

-197.0

-277.7

-80.7

-337.0

-366.6

-29.6

-4.2

-25.4

 

 

 

 

Net Cost

99.0

27.3

-71.7

256.8

187.5

-69.3

-49.7

-19.6

 

 

 

 

 

Rates (Renewals /Landfill /Tsfrs)

-56.3

-56.3

-

-113.1

-113.1

-

-

-

Special Funds

7.2

-2.7

-9.9

-5.4

-5.9

-0.5

-0.4

-0.1

Available Funding Sources

-49.1

-59.0

-9.9

-118.5

-119.0

-0.5

-0.4

-0.1

 

 

 

 

 

 

 

 

 

Borrowing Required

49.9

-31.7

-81.6

138.3

68.5

-69.8

-50.1

-19.7

 

4.16    Capital expenditure is $296 million for the first half of the year (97 percent of year to date funded budget). Over 75% of spend is on the rebuild programme with the SCIRT works making up the majority of these and forecast to be completed in this financial year.  A further $297.8 million is currently forecast to be spent by year end which equates to 107% of total budget.

4.17    The $5.8 million forecast underspend after net budget bring back is made up of a number of variances the largest of which are:

4.17.1    Roading and Transport - due to savings in numerous projects, including road lighting renewals.

4.17.2    Rockfall and improvement allowance - surpluses have been identified as all sites are now in construction.

4.18    Group of Activity level variance commentary for the Capital programme is included in
Attachment B.

4.19    Financial results of significant (>$250,000) capital works programme projects are shown in Attachment C.

4.20    Development contributions are higher than budget year to date as development is higher than planned outside of the rebate areas.

4.21    The large variance to plan for recoveries is due to timing of rebuild infrastructure expenditure.

4.22    Capital release/special dividends are lower than budget year to date due to timing of CCHL capital release.  The forecast includes a lower CCHL capital release ($40 million), offset by higher Tuam dividend ($3.9 million).

4.23    Miscellaneous capital revenues are higher than budget year to date due to higher water connection fees.

4.24    Property asset sales forecast is a $5 million shortfall for the year due to sales not likely to eventuate in this financial year.  

4.25    Special funds drawdowns are $9.9 million lower than budget year to date, mainly due to increased developer contributions set aside to fund future growth works. Timing of central city rebates are also contributing.

4.26    Borrowing for the Capital Programme is expected to be significantly more than budget at year end, although budget bring backs due to timing reduce this to permanent extra borrowing of $19.7 million.  This largely relates to the decreased capital release from CCHL ($40 million).

Special Funds

4.27    The current and forecast movements and balance of the Housing Account, Capital Endowment Fund and Earthquake Mayoral Relief Fund are shown in Attachment D.

4.28    The balance of 2016/17 funds currently unallocated in the Capital Endowment Fund is $232,838.

Earthquake Improvement Allowance

4.29    The Earthquake Improvement Allowance, which is borrowed for, currently has $1,118,796 unallocated. It is reported as $6,118,796 as it includes $5 million relating to the New Brighton Hot Water Pools project.  This has been forecast to be carry forward.

 

Attachments

No.

Title

Page

a

Dec 2016 - LOS Exceptions

22

b

Dec 2016 - Financial Performance

32

c

Dec 2016 - Significant Capital Projects

39

d

Dec 2016 - Special Funds

44

 

 

Confirmation of Statutory Compliance

Compliance with Statutory Decision-making Requirements (ss 76 - 81 Local Government Act 2002).

(a) This report contains:

(i)  sufficient information about all reasonably practicable options identified and assessed in terms of their advantages and disadvantages; and

(ii) adequate consideration of the views and preferences of affected and interested persons bearing in mind any proposed or previous community engagement.

(b) The information reflects the level of significance of the matters covered by the report, as determined in accordance with the Council's significance and engagement policy.

 

Signatories

Authors

Bruce Moher - Manager Planning & Reporting Team

Diane Brandish - Head of Financial Management

Ryan McLachlan - Reporting Accountant

Approved By

Diane Brandish - Head of Financial Management

Carol Bellette - General Manager Finance and Commercial (CFO)

  


Finance and Performance Committee

01 March 2017

 

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01 March 2017

 

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01 March 2017

 

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01 March 2017

 

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Finance and Performance Committee

01 March 2017

 

 

8.    Resolution to Exclude the Public

Section 48, Local Government Official Information and Meetings Act 1987.

 

I move that the public be excluded from the following parts of the proceedings of this meeting, namely items listed overleaf.

 

Reason for passing this resolution: good reason to withhold exists under section 7.

Specific grounds under section 48(1) for the passing of this resolution: Section 48(1)(a)

 

Note

 

Section 48(4) of the Local Government Official Information and Meetings Act 1987 provides as follows:

 

“(4)     Every resolution to exclude the public shall be put at a time when the meeting is open to the public, and the text of that resolution (or copies thereof):

 

             (a)       Shall be available to any member of the public who is present; and

             (b)       Shall form part of the minutes of the local authority.”

 

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by Section 6 or Section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public are as follows:


Finance and Performance Committee

01 March 2017

 

 

 

ITEM NO.

GENERAL SUBJECT OF EACH MATTER TO BE CONSIDERED

SECTION

SUBCLAUSE AND REASON UNDER THE ACT

PLAIN ENGLISH REASON

WHEN REPORTS CAN BE RELEASED

9

Council Controlled Organisation - 31 December 2016 Performance Report

s7(2)(h)

Commercial Activities

Discusses the commercial activities of the entities

When the information is publicly available

10

Overdue Debtors over $20,000 at 31 December 2016

s7(2)(a)

Protection of Privacy of Natural Persons

Overdue debtors should remain confidential to assist in the collection of threse debts.

When legal proceedings are commenced.