Finance and Performance Committee

Open Minutes

 

 

Date:                                     Wednesday 5 September 2018

Time:                                    9.30am

Venue:                                 Council Chambers, Civic Offices,
53 Hereford Street, Christchurch

 

 

Present

Chairperson

Deputy Chairperson

Members

Councillor Raf Manji

Deputy Mayor Andrew Turner

Councillor Vicki Buck

Councillor Jimmy Chen

Mayor Lianne Dalziel

Councillor Mike Davidson

Councillor Anne Galloway

Councillor Jamie Gough

Councillor Yani Johanson

Mr Mike Rondel (Non-Voting Member)

 

 

4 September 2018

 

 

 

Principal Advisor

Carol Bellette

General Manager Finance and Commercial

 

Aidan Kimberley

Committee and Hearings Advisor

941 6566

aidan.kimberley@ccc.govt.nz

www.ccc.govt.nz

To view copies of Agendas and Minutes, visit:
www.ccc.govt.nz/Council/meetingminutes/agendas/index

 


Finance and Performance Committee

05 September 2018

 

Part A        Matters Requiring a Council Decision

Part B         Reports for Information

Part C         Decisions Under Delegation

 

 

 

The agenda was dealt with in the following order.

1.   Apologies

Part C

Committee Resolved FPCM/2018/00048

Committee Decision

That the apology from Councillor Swiggs, apology for early departure from Councillor Chen, and apologies for lateness from Mayor Dalziel and Deputy Mayor Turner be accepted.

Councillor Galloway/Councillor Davidson                                                                                                          Carried

 

2.   Declarations of Interest

Part B

Mayor Dalziel, Deputy Mayor Turner, Councillor Buck and Councillor Gough declared interests in items 7 and 9 as Council appointed Directors of Christchurch City Holdings Limited.

3.   Confirmation of Previous Minutes

Part C

Committee Resolved FPCM/2018/00049

Committee Decision

That the minutes of the Finance and Performance Committee meeting held on Wednesday, 1 August 2018 be confirmed.

Councillor Buck/Councillor Gough                                                                                                                        Carried

 

4.   Public Forum

Part B

There were no public forum presentations.

5.   Deputations by Appointment

Part B

There were no deputations by appointment.

6.   Presentation of Petitions

Part B

There was no presentation of petitions.

Mayor Dalziel and Deputy Mayor Turner joined the meeting at 9:34am.

7.   Chairperson's Report

 

Committee Comment

Councillor Clearwater was in attendance and joined the table for this item.

 

Chairperson’s Recommendations

Councillor Manji moved, seconded by Councillor Gough that the Finance and Performance Committee recommends that the Council:

1.         Note increasing debt levels for both the Council and Christchurch City Holdings Limited.

2.         Request Christchurch City Holdings Limited to seek external independent advice on high-level analysis of options on capital release.

3.         Request Christchurch City Holdings Limited to report back with preliminary advice to the Finance and Performance Committee within 3 months.

When put to the meeting by way of division the motion was declared lost by 4 votes to 5 votes the voting being as follows:

For:                    Councillor Manji, Mayor Dalziel, Councillor Davidson and Councillor Gough

Against:           Deputy Mayor Turner, Councillor Buck, Councillor Chen, Councillor Galloway and Councillor Johanson

Councillor Manji/Councillor Gough                                                                                                                             Lost

Committee Decided FPCM/2018/00050

That the Finance and Performance Committee recommends that the Council:

1.              Requests Christchurch City Holdings Limited to report to the Council on any current considerations of its financial strategy, including its Capital Release strategy.

Deputy Mayor/Councillor Gough                                                                                                                         Carried

Councillors Buck and Johanson requested that their vote against the above decision be recorded.

Councillor Chen left the meeting at 10:00am.

8.   Final Statements of Intent - ChristchurchNZ Holdings Ltd and Central Plains Water Trust

 

Committee Comment

Joanna Norris of ChristchurchNZ delivered a presentation to the Committee on the final Statement of Intent for ChristchurchNZ Holdings Ltd.

The Committee noted the advice set out in paragraphs 4.8 and 4.9 of the staff report about revising ChristchurchNZ’s Levels of Service measures. The Committee made an additional recommendation to the Council, set in in clause 2. below, to request a workshop with ChristchurchNZ on proposed new Levels of Service measures.

 


 

Committee Decided FPCM/2018/00051

Part A

That the Finance and Performance Committee recommends that the Council:

1.         Notes the final Statement of Intent for 2018/19 for ChristchurchNZ Holdings Ltd is a substantially different document to its draft Statement of Intent and is therefore appended to the report as Attachment A;

2.         Requests Council staff and ChristchurchNZ to hold a workshop with the Council on proposed new levels of service before the end of 2018.

3.      Notes that the final Statement of Intent for 2018/19 for Central Plains Water Trust is identical to the draft SOI and can be accessed on the Central Plains Water Trust’s website or a hard copy can be sought from Council staff; and

4.      Notes that the final Statements of Intent for 2018/19 for Central Plains Water Trust and ChristchurchNZ Holdings Ltd were delivered to the Council in accordance with the statutory timeframe and meet the content requirements of clause 9, schedule 8 of the Local Government Act 2002.

Councillor Buck/Councillor Davidson                                                                                                                   Carried

 

9.   Christchurch City Holdings Ltd - Final Statement of Intent

Committee Comment

Leah Scales of Christchurch City Holdings Limited joined the table for this item.

 

Committee Decided FPCM/2018/00052

Part A

That the Finance and Performance Committee recommends that the Council:

1.         Notes the final Statement of Intent for Christchurch City Holdings Ltd which was delivered in accordance with the statutory timing of 30 June, and meets the minimum content requirements set out in clause 9 of Schedule 8 of the Local Government Act 2002;

2.         Notes that the Christchurch City Holdings Ltd Group’s Statements of Intent have addressed the comments made by the Council on the draft documents;

3.         Notes that the financial information recorded in the final Statements of Intent for the Christchurch City Holdings Ltd Group has been fully reflected in the Long Term Plan 2018-2028; and

4.         Notes that the Statements of Intent for the Christchurch City Holdings Ltd Group can be located on each company’s website or a request for a hard copy can be made to Council Finance staff.

Councillor Davidson/Councillor Manji                                                                                                                 Carried

 


 

10. Performance Reporting for Year End June 2018

 

Committee Resolved FPCM/2018/00053

Part C

That the Finance and Performance Committee:

1.         Receives the information in the report.

Deputy Mayor/Councillor Gough                                                                                                                         Carried

 

 

11. Financial Performance report for the year ended 30 June 2018

 

Committee Comment

The Committee discussed costs associated with the SCIRT programme and made an additional recommendation to the Council to request a full and final report on SCIRT.

 

Committee Decided FPCM/2018/00054

Part A

That the Finance and Performance Committee recommends that the Council:

1.         Receives the information in the report.

2.         Approves operational carry forward requests from 2017/18 of $12.8 million (as detailed in Attachment B), to enable completion of projects in 2018/19 and beyond.

3.         Approves (as detailed in Attachment D) net capital carry forwards from 2017/18 of $116.2 million to enable completion of capital projects in 2018/19 or later as indicated, noting that:

a.         $105.9 million moves to 2018/19 and replaces a projected $122.4 million already included in the LTP for the 2018/19 year.

b.         $17.5 million moves to 2019/20 and $7.2 million is brought back from the years’ 2021/22 – 2022/23.

4.         Approves net capital revenue and funding carry forwards from 2017/18 of $16.9 million to align with the capital programme, noting this includes $12.8 million for development contribution rebates.

5.         Notes that the capital programme after carry forwards results in $15.7 million less borrowing than budgeted which allows the borrowing capacity to be used to fund the Town Hall rebuild, previously approved by Council resolution.

6.         Requests staff to provide a full and final report on SCIRT to the Council, including reference to the HIGG independent Chair’s report, independent assessor’s report and OAG report, and noting any other reports that have been published.

Councillor Manji/Mayor                                                                                                                                           Carried

 


 

12  Resolution to Exclude the Public

 

Committee Resolved FPCM/2018/00055

Part C

That at 11:12am the resolution to exclude the public set out on pages 184 to 185 of the agenda be adopted.

Councillor Manji/Deputy Mayor                                                                                                                              Carried

 

The public were re-admitted to the meeting at 11:46am.

 

   

Meeting concluded at 11:47am.

 

CONFIRMED THIS 3RD DAY OF OCTOBER 2018.

 

Councillor Raf Manji

Chairperson