Finance and Performance Committee

20 September 2023

Finance and Performance Committee of the whole - Terms of Reference Ngā Ārahina Mahinga

Chair	Councillor MacDonald
Deputy Chair	Councillor Coker
Membership	The Mayor and all Councillors
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

Delegations

The Council delegates to the Finance and Performance Committee authority to oversee and make decisions on:

Capital Programme and operational expenditure

· Monitoring the delivery of the Council’s Capital Programme and associated operational expenditure, including inquiring into any material discrepancies from planned expenditure.

· As may be necessary from time to time, approving amendments to the Capital Programme outside the Long-Term Plan or Annual Plan processes.

· Approving Capital Programme business and investment cases, and any associated operational expenditure, as agreed in the Council’s Long-Term Plan.

· Approving any capital or other carry forward requests and the use of operating surpluses as the case may be.

· Approving the procurement plans (where applicable), preferred supplier, and contracts for all capital expenditure where the value of the contract exceeds $15 Million (noting that the Committee may sub delegate authority for approval of the preferred supplier and /or contract to the Chief Executive provided the procurement plan strategy is followed).

· Approving the procurement plans (where applicable), preferred supplier, and contracts, for all operational expenditure where the value of the contract exceeds $10 Million (noting that the Committee may sub delegate authority for approval of the preferred supplier and/or contract to the Chief Executive provided the procurement plan strategy is followed).

Non-financial performance

· Reviewing the delivery of services under s17A.

· Amending levels of service targets, unless the decision is precluded under section 97 of the Local Government Act 2002.

· Exercising all of the Council's powers under section 17A of the Local Government Act 2002, relating to service delivery reviews and decisions not to undertake a review.

Council Controlled Organisations

· Monitoring the financial and non-financial performance of the Council and Council Controlled Organisations.

· Making governance decisions related to Council Controlled Organisations under sections 65 to 72 of the Local Government Act 2002.

· Exercising the Council’s powers directly as the shareholder, or through CCHL, or in respect of an entity (within the meaning of section 6(1) of the Local Government Act 2002) in relation to –

o (without limitation) the modification of constitutions and/or trust deeds, and other governance arrangements, granting shareholder approval of major transactions, appointing directors or trustees, and approving policies related to Council Controlled Organisations; and

o in relation to the approval of Statements of Intent and their modification (if any).

Development Contributions

· Exercising all of the Council's powers in relation to development contributions, other than those delegated to the Chief Executive and Council officers as set out in the Council's Delegations Register.

Property

· Purchasing or disposing of property where required for the delivery of the Capital Programme, in accordance with the Council’s Long-Term Plan, and where those acquisitions or disposals have not been delegated to another decision-making body of the Council or staff.

Loans and debt write-offs

· Approving debt write-offs where those debt write-offs are not delegated to staff.

· Approving amendments to loans, in accordance with the Council’s Long-Term Plan.

Insurance

· All insurance matters, including considering legal advice from the Council’s legal and other advisers, approving further actions relating to the issues, and authorising the taking of formal actions (Sub-delegated to the Insurance Subcommittee as per the Subcommittees Terms of Reference)

Annual Plan and Long Term Plan

· Provides oversight and monitors development of the Long Term Plan (LTP) and Annual Plan.

· Approves the appointment of the Chairperson and Deputy Chairperson of the External Advisory Group for the LTP 2021-31.

Submissions

· The Council delegates to the Committee authority:

· To consider and approve draft submissions on behalf of the Council on topics within its terms of reference. Where the timing of a consultation does not allow for consideration of a draft submission by the Council or relevant Committee, that the draft submission can be considered and approved on behalf of the Council.

Limitations

· The general delegations to this Committee exclude any specific decision-making powers that are delegated to a Community Board, another Committee of Council or Joint Committee. Delegations to staff are set out in the delegations register.

· The Council retains the authority to adopt policies, strategies and bylaws.

The following matters are prohibited from being subdelegated in accordance with LGA 2002 Schedule 7 Clause 32(1) :

· the power to make a rate; or

· the power to make a bylaw; or

· the power to borrow money, or purchase or dispose of assets, other than in accordance with the long-term plan; or

· the power to adopt a long-term plan, annual plan, or annual report; or

· the power to appoint a chief executive; or

· the power to adopt policies required to be adopted and consulted on under this Act in association with the long-term plan or developed for the purpose of the local governance statement; or

· the power to adopt a remuneration and employment policy.

Chairperson may refer urgent matters to the Council

As may be necessary from time to time, the Committee Chairperson is authorised to refer urgent matters to the Council for decision, where this Committee would ordinarily have considered the matter. In order to exercise this authority:

· The Committee Advisor must inform the Chairperson in writing the reasons why the referral is necessary

· The Chairperson must then respond to the Committee Advisor in writing with their decision.

· If the Chairperson agrees to refer the report to the Council, the Council may then assume decision making authority for that specific report.

Urgent matters referred from the Council

As may be necessary from time to time, the Mayor is authorised to refer urgent matters to this Committee for decision, where the Council would ordinarily have considered the matter, except for those matters listed in the limitations above.

In order to exercise this authority:

· The Council Secretary must inform the Mayor and Chief Executive in writing the reasons why the referral is necessary

· The Mayor and Chief Executive must then respond to the Council Secretary in writing with their decision.

If the Mayor and Chief Executive agrees to refer the report to the Committee, the Committee may then assume decision-making authority for that specific report.

Finance and Performance Committee

20 September 2023

Unconfirmed

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Finance and Performance Committee

Open Minutes

Date: Wednesday 23 August 2023

Time: 9.30 am

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

Present

Chairperson

Deputy Chairperson

Members

Councillor Sam MacDonald

Councillor Melanie Coker

Mayor Phil Mauger

Deputy Mayor Pauline Cotter

Councillor Kelly Barber

Councillor Celeste Donovan - via audio/visual link

Councillor Tyrone Fields

Councillor James Gough

Councillor Tyla Harrison-Hunt - via audio/visual link

Councillor Victoria Henstock

Councillor Yani Johanson

Councillor Aaron Keown

Councillor Jake McLellan

Councillor Andrei Moore

Councillor Mark Peters

Councillor Tim Scandrett

Councillor Sara Templeton

Principal Advisor

Leah Scales

General Manager - Resources / CFO

Tel: 941 8999

Principal Advisor

Dawn Baxendale

Chief Executive

Tel: 941 8999

David Corlett

Democratic Services Advisor

941 5421

david.corlett@ccc.govt.nz

www.ccc.govt.nz

Part A Matters Requiring a Council Decision

Part B Reports for Information

Part C Decisions Under Delegation

Karakia Tīmatanga: Given by all Councillors.

The agenda was dealt with in the following order.

1. Apologies Ngā Whakapāha

Part C

Committee Resolved FPCO/2023/00067

That the apologies received from Councillor Gough for lateness be accepted.

Councillor MacDonald/Councillor Coker Carried

2. Declarations of Interest Ngā Whakapuaki Aronga

Part B

There were no declarations of interest recorded.

3. Confirmation of Previous Minutes Te Whakaāe o te hui o mua

Part C

Committee Resolved FPCO/2023/00068

That the minutes of the Finance and Performance Committee meeting held on Tuesday, 25 July 2023 be confirmed.

Councillor MacDonald/Councillor Peters Carried

4. Public Forum Te Huinga Whānui

Part B

There were no public forum presentations.

5. Deputations by Appointment Ngā Huinga Whakaritenga

Part B

There were no deputations by appointment.

6. Presentation of Petitions Ngā Pākikitanga

Part B

There was no presentation of petitions.

Councillor Keown arrived at the meeting at 9.33am.

7. Key Organisational Performance Results - Yearend (June) 2023

Committee Resolved FPCO/2023/00069

Officer Recommendations accepted without change.

Part C

That the Finance and Performance Committee:

1. Receive the information in the Key Organisational Performance Results – June (year-end) 2023 report.

Councillor MacDonald/Councillor Coker Carried

Councillor McLellan left the meeting at 10.01am and returned at 10.04am during item 8.

8. Financial Performance Report - June 2023

Committee Resolved FPCO/2023/00070

Officer Recommendations accepted without change.

Part C

That the Finance and Performance Committee:

1. Receive the information in the Financial Performance Report for the year ended 30 June 2023.

2. Approves operational carry forward requests from 2022/23 of a net $19.0 million (as detailed in Attachment B), to enable completion of projects in 2023/24.

3. Approves net capital bring backs to 2022/23 of $33.6 million (as detailed in Attachment C) to enable completion of capital projects in 2023/24 or later, noting that:

a. Excluding the $68 million bring back for Te Kaha, the net carry forward is $34.3 million.

b. $14.2 million moves to 2023/24 and has not been substituted.

c. $20.1 million moves to 2024/25 onwards, noting that work is required during the 2024/34 LTP process to re-phase the wider capital budget to ensure affordability and deliverability across this period.

4. Approves net capital revenue and funding bring backs of $64.1 million, and on-lending and vested asset carry forwards as detailed in Attachment C.

5. Confirms the following treatment for the 2022/23 operating surplus of $4.4 million:

a. $0.4 million of unspent weather event contingency budget to be transferred and added to the $0.7 million sitting in the Adverse Event fund. This will provide $1.1 million for any future weather event that exceeds normal budget capacity.

b. The balance of $4.0 million is applied to repayment of ratepayer debt.

c. Council notes the operating deficit across Three Waters is $7.7 million.

Mayor/Councillor Coker Carried

Councillor Gough arrived at the meeting at 10.07am during item 9.

9. Capital Programme Performance Report June End Year 2023
	Committee Comment 1. In presenting the report staff noted that the June results highlight the challenges in providing accurate year-end forecasts at capital programme level. Key learnings from the June result include the need for: a. closer review and scrutiny of all forecasts to improve accuracy and predictability; b. timely inputs into operating accounts derived from third party inputs (e.g. RAMM); c. monthly reviews of opex and capex accounts to ensure current allocations. 2. The Committee requested a report back on these learnings to the next meeting.
	Officer Recommendations Ngā Tūtohu That the Finance and Performance Committee: 1. Receive the information in the Capital Programme Performance Report June End Year 2023.
	Committee Resolved FPCO/2023/00071 Part C That the Finance and Performance Committee: 1. Receive the information in the Capital Programme Performance Report June End Year 2023. 2. Request a report back on the key learnings as outlined in the report to the next Finance and Performance meeting. Councillor MacDonald/Councillor Peters Carried

10. Canterbury Museum Temporary Unregistered Easement over Botanic Gardens Reserve for Orion Transformer

Committee Resolved FPCO/2023/00072

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1. Approve pursuant to Section 48(1) of the Reserves Act 1977, the granting of a temporary unregistered (until 31 December 2027) right to site a transformer easement to Canterbury Museum over that part of the Local Purpose (Botanic Gardens) Reserve known as Botanic Gardens (Section Part Reserve 25 contained in record of Title 668229) shown on the plan below at section 5.5, subject to:

a. Orion removing the temporary transformer before the temporary unregistered easement expires by 31 December 2027 and reinstatement of the site.

b. Subject to Tree Management Plan approval for installation of Transformer and services to Head of Parks

c. The Council acknowledges that a Public Notice is not required in this instance.

d. The Chief Executive’s consent as delegated from the Minister of Conservation to approve the easement.

e. All necessary statutory consents under, but not limited to, the Resource Management Act and Building Control Act being obtained by Canterbury Museum.

f. Canterbury Museum meeting its own costs associated with the creation and execution of this easement.

2. Authorise the Property Consultancy Manager, should the temporary unregistered easement be granted with the consent of the Chief Executive, to conclude negotiations to finalise the terms of a temporary easement agreement with Canterbury Museum including the signing of any associated documentation to implement the temporary unregistered easement proposed by this report and to protect the Council’s interests.

Mayor/Councillor Peters Carried

11. Resolution to Exclude the Public Te whakataunga kaupare hunga tūmatanui

Committee Resolved FPCO/2023/00073

Part C

That at 10.14 the resolution to exclude the public set out on pages 114 to 115 of the agenda be adopted.

Councillor MacDonald/Councillor Barber Carried

The public were re-admitted to the meeting at 10.58am.

Karakia Whakamutunga: Given by all Councillors

Meeting concluded at 10.59am.

CONFIRMED THIS 20th DAY OF SEPTEMBER 2023.

Councillor Sam MacDonald

Chairperson

Finance and Performance Committee

20 September 2023

7. Key Organisational Performance Results - August 2023
Reference / Te Tohutoro:	23/1326618
Report of / Te Pou Matua:	Peter Ryan, Head of Corporate Planning & Performance Peter.Ryan@ccc.govt.nz
General Manager / Pouwhakarae:	Lynn McClelland, Assistant Chief Executive Strategic Policy and Performance (lynn.mcclelland@ccc.govt.nz)

1. Nature of Information Update and Report Origin

1.1 The purpose of this report is to provide Council with an overview of service, project and budget performance, as adopted through the 2021-31 Long Term Plan (and Annual Plan 2023/24.)

1.2 This is a long-standing report focused on performance against agreed organisational performance targets.

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Receive the information in the Key Organisational Performance Results – August 2023 report.

3. Brief Summary (briefly include any relevant background details or context)

3.1 The key organisational performance targets include:

· 1.1.1 Service delivery

· 1.1.2 Capital projects (both planning and delivery)

· 1.1.3 Finance

3.2 Organisational performance forecasts, August 2023, for the third year of the LTP 2021-31 (financial year to June 2024).

3.3 Community level of service delivery is forecast at 86.4%, against ELTs target of 85%.

3.4 Key project milestone delivery is forecast at 95%, above ELTs target, while Non-Key project delivery is forecast below ELTs target at 81% (both against a target of 85%). For project-specific information refer to the Capital Programme Performance Report.

3.5 Capital programme planning for future years is forecast at 90%, both for allocation of funding budgets for FY2025 and drawing down of FY26 & 27 funding budgets. Both targets are on track to be met.

3.6 Operational budget is forecast as having a surplus of $0.7m. For more information refer to the Financial Performance Report.

3.7 The overall capital programme is forecast to deliver at -6.8% of budget (against a target of between 0% and -10%). This result includes core and externally funded work but excludes Te Kaha. (Parakiore, formerly excluded with Te Kaha, is now included in core capital, at the direction of the Project Management Office.) More information is available in the Capital Programme Performance Report.

4. Service delivery

ELT Goal: Deliver 85% Community Levels of Service to target

4.1 Community levels of service (LOS) is forecast at 86.4% delivery against the performance target of 85%.

4.2 Forecast actuals, comments, and remedial actions from managers for LOS exceptions are available in Attachment A.

4.3 In summary LOS exceptions relate to:

4.3.1 Transport activity has several exceptions related to road and footpath condition, resurfacing, including resident satisfaction, and transport mode-share.

4.3.2 Water Supply activity is impacted by reporting and data issues related to time to attend and resolve urgent callouts and water supply usage, as well as leakage rates and drinking water standards.

4.3.3 Impacts are also noticeable in some regulatory services, such as increases in consent volumes leading to delays in consent processing, food control plan verification and response to inappropriate noise levels.

4.3.4 Communications & Engagement exceptions relate to providing support and advice in community engagement and providing effective and relevant external communications, marketing & engagement activities.

4.3.5 Parks, Citizen & Customer Services exceptions mostly relate to annual Resident Satisfaction Survey results.

4.4 The following recommendations were proposed with the June 2023 report, for improving forecasting of LOS and other ELTs performance priorities for the year ahead:

4.4.1 ELT members to work closely with Heads of Service and teams to encourage and support regular monthly status report updates to bring areas of concern to light;

4.4.2 Ensure Performance Reports remain as regular monthly agenda items, determine remedial actions for identified exceptions and set action items in minutes to bring exceptions back on track before year-end;

4.4.3 Continue with the standing Audit and Risk Management Committee (ARMC) directive – all LOS that were not met the previous year must continue to be reported as an exception until evidence is provided that the target will or has been met.

4.5 The scatter diagram below is an overview of the performance of the top-ten activities.

· The vertical y-axis shows service delivery (LOS) performance.

· The horizontal x-axis shows budget over/underspend.

5. Capital projects - delivery and planning

ELT Goal: Deliver 85% Key capital projects to ‘delivery complete’ milestones

ELT Goal: Deliver 85% non-Key capital projects to ‘delivery complete’ milestones

5.1 Key project milestone delivery is forecast at 95% delivery against the target of 85%.

5.2 Non-Key project milestone delivery is forecast at 81.0% delivery against the target of 85%.

5.3 For further information and underlying project detail, refer to the Capital Programme Performance Report.

5.4 Below is a forward view of capital delivery performance (financial) for the first three years of the LTP 2021-31, with an overview of capital delivery in recent years against plan. This view is now adjusted to take into account a revised year-end budget delivery figure for 2022/23, and the newly adopted capital programme from the Annual Plan 2023/24 (adopted by Council 27 June 2023.)

5.5 As the draft Long-term Plan 2024-34 is adopted (February 2024) this forward view will be adjusted to include planned budgets for the future three-year period (2024/25 to 2026/27).

5.6 For the year 3 of the LTP 2021 (through the Annual Plan 2023/24), the revised total programme budget set for CCC to deliver is $483m (blue line). To the end of August 2023, the total forecast capital delivery is $450m (green line), which equates to 93.2% delivery. This forecast delivery value is an increase from the previous year forecasts of between $390m to $405m (year-end actual $452m), includes both core and externally funded works, but excludes Te Kaha.

5.7

Prior to 2023/24 there has been stability of delivery year-on-year for projects CCC is responsible for (green line – total spend/forecast spend), ranging in a band between $371m to $409m spend per annum over the previous four years.

5.8 The ELT performance goal for capital delivery is based on all delivery CCC is accountable for, regardless of funding source.

5.9 Figures align with the Financial and Capital Programme Performance reports.

ELT Goal: Ensure capital planning for FY25 funding programme budgets allocated,
90% by 1 March 2024.

ELT Goal: Ensure capital planning for FY26 & FY27 funding programme budgets drawn down, 90% by 1 May 2024.

5.10 Capital planning targets are intended to monitor the draw-down and allocation of future capital funding programme budgets. This helps the business plan and prepare for future capital project delivery, in order to effectively implement the LTP and subsequent Annual Plans.

5.11 Both future Capital planning performance targets are forecast by the PMO as will meet target, funding programme budgets allocated for FY2025 by 1^st March 2024 and budget drawdowns for FY2026 and 2027 by 1^st May 2024 each forecasted at 90%.

6. Finance

6.1 For August, the organisation reports an operational surplus of $0.7m. For more information refer to the Financial Performance Report.

6.2 Overall capital programme budget expenditure forecast is at -6.8%. This is on track to meet ELTs target (between 0% to -10%). More detail in the Capital Programme Performance Report.

Attachments / Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	LOS Exceptions Commentary August 2023	23/1463254	21

In addition to the attached documents, the following background information is available:

Document Name – Location / File Link

Not applicable

Confirmation of Statutory Compliance / Te Whakatūturutanga ā-Ture

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 / Ngā Kaiwaitohu

Authors

Amber Tait - Performance Analyst

Boyd Kedzlie - Senior Business Analyst

Approved By

Peter Ryan - Head of Corporate Planning & Performance

Lynn McClelland - Assistant Chief Executive Strategic Policy and Performance

Finance and Performance Committee

20 September 2023

8. Financial Performance Report - August 2023
Reference / Te Tohutoro:	23/1441745
Report of / Te Pou Matua:	Russell Holden – Head of Finance (Russell.Holden@ccc.govt.nz)
General Manager / Pouwhakarae:	Leah Scales, General Manager Resources/Chief Financial Officer (Leah.Scales@ccc.govt.nz)

1. Nature of Information Update and Report Origin

1.1 The purpose of this report is for the Finance and Performance Committee to be updated on financial performance to August 2023, including the current year forecast, and receive current treasury information.

1.2 This is a regular monthly report that goes to the Committee.

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Receive the information in the Financial Performance Report for August 2023.

3. Brief Summary

3.1 The financial result for August shows a year to date operational surplus better than budget of $3.7 million and a forecast surplus better than budget of $0.7 million.

3.2 The total capital programme before signalled carry forwards is forecast to under spend by $35.8 million. This comprises an under spend of $32.9 million on the core/external funded programme and $2.9 million on Te Kaha.

3.3 All treasury risk positions are within policy limits.

4. Operating Forecast

4.1 The current forecast surplus of $0.7 million better than budget is due to additional rates growth in late FY23 of $1.25 million. This is partially offset by a $0.6 million forecast reduction in the Transwaste dividend to be received.

4.2 The forecast is updated monthly and alters as new information and events come to light. This month only material issues over $500,000 were considered for inclusion in the forecast.

4.3 No significant expenditure carry forwards are signalled at this point.

5. Operational Expenditure and Revenue

5.1 This covers day to day spend on staffing, operations and maintenance, and revenues to fund it.

5.2 Operational revenue exceeds expenditure as it includes rates revenue for capital renewals and debt repayment. This revenue is referred to below as ‘Funds not available for Opex’ and removed to show the operational year to date and forecast cash surplus or deficit.

	Year to Date Results			Forecast Year End Results			After Carry Forwards
$m	Actual	Budget	Var	Forecast	Budget	Var	Carry Fwd	Var
Revenues	(211.6)	(211.6)	-	(989.8)	(989.1)	0.7	-	0.7
Expenditure	145.7	150.8	5.1	755.7	755.7	-	-	-
Funds not available for Opex	61.8	60.4	(1.4)	233.2	233.2	-	-	-
Operating (Surplus)/Deficit	(4.1)	(0.4)	3.7	(0.9)	(0.2)	0.7	-	0.7

5.3 Brief summaries of revenues and expenditures are highlighted below.

5.4 Revenues are forecast to be $0.7 million higher at year end as a result of forecast higher rates revenue due to rating base growth late in FY23 ($1.25 million), partially offset by a $0.6 million forecast reduction in Transwaste dividends.

Key drivers of actual and forecast variances to budget include: YTD Forecast
(after c/f)

· Rates Revenues (Rates growth) $0.0m $1.3m

· Transwaste Dividends $0.0m ($0.6m)

5.5 Expenditure is $5.1 million lower than budget year to date, and forecast to be on budget at year end. The year-to-date variance is primarily driven by lower personnel costs, being a mix of higher than budgeted vacancies and annual increases not yet being incurred, and also the timing of some maintenance costs.

Key drivers of actual and forecast variances to budget include: YTD Forecast

(after c/f)

· Personnel costs ($3.4m) $0.0m

· Maintenance cost timing ($1.7m) $0.0m

5.6 Funds not available for opex - items included in this category contributing to the variance are Housing and Dogs (both non-rates funded), Capital Endowment funded projects, and Capital grants (borrowed).

6. Capital Expenditure and Revenue

6.1 This section covers the capital programme spend and funding relating to it.

	Year to Date Results			Forecast Year End Results			After Carry Forwards
$m	Actual	Budget	Var	Forecast	Budget	Var	Carry Fwd	Var
Core Programme	48.7	75.7	27.0	488.3	455.4	(32.9)	(53.6)	20.7
External Funded Programme	2.8	4.6	1.8	51.5	27.4	(24.1)	(16.2)	(7.9)
Less unidentified Carry Forwards	-	-	-	(89.9)	-	89.9	102.1	(12.2)
Core/External Funded Programme	51.5	80.3	28.8	449.9	482.8	32.9	32.3	0.6
Te Kaha	14.3	34.9	20.6	206.6	209.5	2.9	2.9	-
Total Capital Programme	65.8	115.2	49.4	656.5	692.3	35.8	35.2	0.6
Revenues and Funding	(53.6)	(69.5)	(15.9)	(311.6)	(311.5)	0.1	-	0.1
Borrowing required	12.2	45.7	33.5	344.9	380.8	35.9	35.2	0.7

Capital Expenditure

6.2 Gross capital expenditure of $65.8 million has been incurred year to date against a budget of $115.2 million.

6.3 Overall, total capital expenditure of $656.5 million is forecast (based on the PMO Forecast of $450m for CCC Capital-Core/External Funded) to be spent against the year budget of $692.3 million. Of the $35.8 million variance, the majority is forecast to be likely carried forward.

6.4 For further information on capital expenditure, please refer to the Capital Programme Performance Report contained in this agenda.

Capital Revenues and Funding

6.5 Capital revenues and funding are a net $15.9 million lower year to date, and forecast to be $0.1 million higher than budget before carry forwards comprising:

6.5.1 Delayed receipts of Te Kaha Crown revenues ($2.6 million YTD / $15.8 million budgeted YTD), partially offset by higher development contributions ($4.5 million YTD / $3.8 million budgeted YTD) and increased miscellaneous capital revenues ($1.0 million YTD / $0.2 million budgeted YTD).

6.5.2 Lower Reserve drawdowns of $2.0 million year to date, due to development contributions not having been drawn for qualifying expenditure for August ($2.7 million), due to a review of qualifying projects and catchments occurring. A drawdown will occur once completed.

7. Treasury

Policy Compliance

7.1 All Treasury risks are within Policy limits, with no breaches projected over the coming year:

Risk Area	Compliance	*Plain-language meaning*
Liquidity Risk	Yes	(cash availability)
Funding Risk	Yes	(spread of debt maturities)
Interest Rate Risk	Yes	(managing interest costs)
Counterparty Credit Risk	Yes	(not all eggs in one basket)

Borrowing, Advances to Related Parties, and Bank Deposits

7.2 Council’s borrowing and treasury-related Advances are shown below ($ millions):

7.3 Advances to Related Parties are primarily to Christchurch City Holdings (currently $657.2m).

7.4 Net Debt by Jun-24 is estimated to be $311.9 million higher than at Jun-23, driven by capital investment (particularly Te Kaha).

Funding & Interest Rates

7.5 Council’s projected funding needs, per financial year, are shown below, split between existing debt maturities (green) and expected new borrowing requirements (grey).

A graph of a graph showing a number of years

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7.6 Council’s interest rate risk is managed to reduce the volatility of interest costs from year to year. Most existing Council debt has been fixed for at least the next three years, which will limit the impact of current higher interest rates on Council’s future borrowing costs.

Average for 2022/23 was 4.9%. There is some upside risk if market rates stay elevated.

Attachments / Ngā Tāpirihanga

There are no attachments for this report.

In addition to the attached documents, the following background information is available:

Document Name – Location / File Link

Not applicable

Confirmation of Statutory Compliance / Te Whakatūturutanga ā-Ture

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 / Ngā Kaiwaitohu

Authors

Annie Yang - Reporting Accountant

Steve Ballard - Group Treasurer

Bruce Moher - Manager Corporate Reporting

Mitchell Shaw - Reporting Accountant

Approved By

Russell Holden - Head of Finance

Leah Scales - General Manager Resources/Chief Financial Officer

Finance and Performance Committee

20 September 2023

9. Capital Programme Performance Report August 2023
Reference / Te Tohutoro:	22/1683155
Report of / Te Pou Matua:	Andrew Robinson, Head of Programme Management Office (andrew.robinson@ccc.govt.nz)
General Manager / Pouwhakarae:	Lynn McClelland, Assistant Chief Executive Strategic Policy and Performance (lynn.mcclelland@ccc.govt.nz)

1. Nature of Information Update and Report Origin

1.1 The purpose of this report is to present to the Council meeting the monthly Capital Programme Performance Report August 2023.

1.2 This report provides Elected Members with oversight on the performance of the Capital Programme.

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Receive the information in the Capital Programme Performance Report August 2023.

3. Brief Summary

3.1 A new format Monthly Capital Programme Performance Report (attached) accompanies this brief Cover Report. It provides:

· A more visual, concise, easy to read format

· One page per major Service Area

· A sharper focus on forecasting and variance from plan

· One page for each of the 21 Watchlist projects.

The August 2023 Capital Programme Performance Report is accompanied by the quarterly Transport Choices (CERF) Report and Christchurch Regeneration Acceleration Facility (CRAF) Transport Report.

3.2 Only high-level points and significant programme exceptions will be covered in this Cover Report as the attachment (Capital Programme Performance Report August 2023) comprehensively covers content including summaries, key achievements, financial and programme status, critical issues and risks.

3.3 The consolidated FY24 forecast for the CCC Capital component of the programme (excl. Te Kaha) as reported by Project Managers is $552m against a Budget of $483m. This forecast is likely to reduce over the year.

3.4 The PMO forecast for the CCC Capital component is $450m for year-end. This is comparable to the year-end position from FY23. A key focus this year is in improving accuracy of PMs’ forecasts and this will be worked on collaboratively and continuously throughout the year to improve PM-PMO forecast alignment.

3.5 The two main exceptions which are demanding more management attention presently are in the Digital and Waste Management portfolios where forecasts show significant departures from the current year agreed Budgets (both over and under respectively). However, the Digital Dashboard is not included this month as it will be updated more accurately following portfolio planning sessions with the Executive Leadership Team. Transport also requires closer attention on its PM forecasts. These exceptions will be commented on again next month after remedial actions are taken.

3.6 A new Watchlist has been generated for FY24 and a ‘one-page per project’ is provided for each of these providing better visibility and insight into the main issues of the most strategic projects this year. The Watchlist was generated in conjunction with Heads of Service. In identifying projects for inclusion on the Watchlist we have considered the following:

· Scale and significance

· Strategic importance for CCC

· Public / political profile and interest

· Budget

· Programme immediacy

· Delivery risk

· A balanced portfolio

3.7 The FY24 Watchlist comprises the following 21 Projects. One further project, Te Kaha Surrounding Streets, will be added to the Watchlist from September 2023. Project selection will be reviewed in mid-FY24.

Project ID	Project Title	Reporting Area
1026	Te Kaha Canterbury Multi Use Arena (CMUA)	Major Facilities
1017	Parakiore Recreation and Sports Centre (Metro Sport Facility)	Major Facilities
862	Matatiki: Hornby Centre	Major Facilities
64048	Performing Arts Precinct – Te Whare Tapere	Major Facilities
32243	SW Eastman Sutherland and Hoon Hay Wetlands	Water
61615	SW South New Brighton & Southshore Estuary Edge Flood Mitigation	Water
71306	Coastal Pathway & Moncks Bay - Council Funded	Transport
924	Halswell Junction Road Extension	Transport
917	Lincoln Road Passenger Transport Improvements (Between Curletts & Wrights)	Transport
23100	Major Cycleway - Heathcote Expressway Route (Section 2) Tannery to Martindales	Transport
47023	Major Cycleway - Northern Line Route (Section 2) Tuckers to Barnes & Main North Road	Transport
23101	Major Cycleway - Nor'West Arc Route (Section 3) University to Harewood	Transport
26608	Major Cycleway - South Express Route (Section 1) Hei Hei to Jones	Transport
26611	Major Cycleway - Wheels to Wings Route (Section 1) Harewood to Greers	Transport
2356	Akaroa Wharf Renewal	Parks
61821	Cuningham House Building Renewals (Heritage)	Parks
61531	Ngā Puna Wai Car Park and Access Improvements	Parks
62549	Red Zone Regeneration-Southshore and South New Brighton Estuary Edge Erosion Management	Parks
68173	Ōtākaro-Avon River Corridor City to Sea Pathway (OARC)	ŌARC
66000	SW ANZAC to Waitaki Stopbank (OARC)	ŌARC
67421	SW Pages to Bridge (OARC)	ŌARC

3.8 Additional Watchlists and Status Reports are provided quarterly for CRAF and CERF Programmes and these are included this month.

Attachments / Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	Attachment to report 22/1700935 (Title: Capital Programme Performance Report - August 2023 - Final)	23/1438658	36

In addition to the attached documents, the following background information is available:

Document Name – Location / File Link

Not applicable

Confirmation of Statutory Compliance / Te Whakatūturutanga ā-Ture

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 / Ngā Kaiwaitohu

Authors

Lauren Barry - Senior PMO Analyst

Andrew Robinson - Head of Programme Management Office

Greer Hill - PMO Administrator

Approved By

Lynn McClelland - Assistant Chief Executive Strategic Policy and Performance

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
11.	Public Excluded Finance and Performance Committee Minutes - 23 August 2023			Refer to the previous public excluded reason in the agendas for these meetings.
12.	Christchurch City Holdings Ltd - Appointment of new directors to subsidiary boards - Christchurch International Airport Ltd, Enable Services and City Care Ltd.	s7(2)(a)	Protection of Privacy of Natural Persons	To protect the reputations of the candidates.	As soon as the decision is made and the candidates notified.
13.	Cashmere Worsleys Flood Storage Budget Change Request	s7(2)(i)	Conduct Negotiations	Subject to commercial negotians	At the conclusion of negotiations or at finanal project close out.