Christchurch City Council
Agenda
Notice of Meeting:
An ordinary meeting of the Christchurch
City Council will be held on:
Date: Tuesday 31 October 2023
Time: 10.00am
Venue: Council Chambers, Civic Offices,
53 Hereford Street, Christchurch
Membership
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Chairperson
Deputy Chairperson
Members
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Mayor Phil Mauger
Deputy Mayor Pauline Cotter
Councillor Kelly Barber
Councillor Melanie Coker
Councillor Celeste Donovan
Councillor Tyrone Fields
Councillor James Gough
Councillor Tyla Harrison-Hunt
Councillor Victoria Henstock
Councillor Yani Johanson
Councillor Aaron Keown
Councillor Sam MacDonald
Councillor Jake McLellan
Councillor Andrei Moore
Councillor Mark Peters
Councillor Tim Scandrett
Councillor Sara Templeton
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26 October 2023
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Principal Advisor
Dawn Baxendale
Chief Executive
Tel: 941 8999
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Katie Matheis
Team Leader Hearings & Committee Support
941 5643
katie.matheis@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, go to:
https://www.ccc.govt.nz/the-council/meetings-agendas-and-minutes/
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Council
31 October 2023
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TABLE OF CONTENTS NGĀ IHIRANGI
Karakia Tīmatanga................................................................................................... 4
1. Apologies Ngā Whakapāha................................................................................. 4
2. Declarations of Interest Ngā Whakapuaki Aronga.................................................. 4
3. Public
Participation Te Huinga
Tūmatanui............................................................ 4
3.1 Public Forum Te Huinga Whānui.......................................................................................... 4
3.2 Deputations by
Appointment Ngā Huinga Whakaritenga...................................................... 4
4. Presentation
of Petitions Ngā
Pākikitanga............................................................ 4
Staff Reports
5. Christchurch
City Council Draft Annual Report for the Year Ended 30 June 2023........ 5
Karakia Whakamutunga
Whakataka Te
hau ki Te uru
Whakataka Te
hau ki Te tonga
Kia makinakina
ki uta
Kia mataratara
ki Tai
E hi ake ana te
atakura
He tio, he
huka, he hau hu
Tihei Mauri Ora
1. Apologies Ngā Whakapāha
At the close of
the agenda no apologies had been received.
2. Declarations of Interest Ngā
Whakapuaki Aronga
Members are
reminded of the need to be vigilant and 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. Public Participation Te Huinga
Tūmatanui
3.1 Public Forum Te Huinga Whānui
A period of up to 30 minutes is available
for people to speak for up to five minutes on any issue that is not the subject
of a separate hearings process.
There were no public forum requests
received at the time the agenda was prepared.
3.2 Deputations by Appointment Ngā
Huinga Whakaritenga
Deputations may be heard on a matter or
matters covered by a report on this agenda and approved by the Chairperson.
There were no
deputations by appointment at the time the agenda was prepared.
4. Presentation of Petitions Ngā
Pākikitanga
There were no
Presentation of Petitions at the time the agenda was prepared.
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Council
31 October 2023
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5. Christchurch
City Council Draft Annual Report for the Year Ended 30 June 2023
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Reference / Te Tohutoro:
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23/1726528
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Report of / Te Pou Matua:
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Niel
Koch, Group Financial Controller
(Niel.Koch@ccc.govt.nz)
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Senior Manager / Pouwhakarae:
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Leah
Scales, General Manager Resources/Chief Financial Officer
(Leah.Scales@ccc.govt.nz)
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1. Purpose and Origin of Report Te Pūtake Pūrongo
1.1 The purpose of this report is to present the 2022/23 Annual
Report to the Christchurch City Council for adoption.
1.2 This report is staff generated as the Council is required
to adopt the Annual Report under section 67 of the Local Government Act 2002 no
later than 31 October 2023.
2. Officer
Recommendations Ngā Tūtohu
That the Council:
1. Note that the Audit and Risk Management Committee (ARMC) have
reviewed the draft Annual Report for the year ended 30 June 2023 and are
satisfied that the proper processes have been followed to ensure that the
Annual Report and associated financial statements have been prepared correctly
and recommends Council adopts the 2022/23 Annual Report.
2. Approves the signing of the representation letter (attachment C)
by the Mayor and Chief Executive.
3. Adopt the 2022/23 Annual Report (attachment A) for the
Christchurch City Council, subject to receiving the independent auditor’s
written signoff.
4. Authorise the GM Resources/CFO to make minor changes to the 2022/23
Annual Report prior to publication if necessary.
5. Authorise the GM Resources/CFO to produce and publish the 2022/23 Summary
Annual report.
3. Key Points
3.1 On
16 October 2023 the ARMC recommended the Council adopt the 2022/23 Annual
Report on the following conditions:
3.1.1 Audit New Zealand
(Audit NZ) provide written signoff and
3.1.2 Management circulates
the sign-off process by Council staff attesting to the
completeness of the information in the Annual Report.
3.2 The
Annual Report, refer to attachment A, comprises four sections:
· The Council (also known as the front section)
· Groups of Activities
· Financial Statements
· Summary information from Council-controlled organisations.
Note that all “Table of
Contents” page numbering are not yet updated. This will be done once
cosmetic improvements (pictures, etc.)
are added by the Communications team, prior to
publishing (no later than 30 November
2023).
The
Council section gives background information on the
Council and high-level summaries
of
achievements for the year.
The Group of Activities (GOA) sections
in the Annual Report includes commentary on “what we do”,
“what we did”, “how did we measure up”, “how much
did it cost” and “what next” for each activity.
· These sections are prepared by the individual business units in
conjunction with the Finance Business Partners. Once completed, a
comprehensive review and sign off process is completed by General Managers.
· The “how did we measure up” information has been
prepared by the Performance Management team and reviewed as part of the
comprehensive sign off review. The performance measures are linked back to the
targets set as part of the 2021-31 Long Term Plan.
The Financial Statements have
been prepared in line with generally accepted accounting practice and in
accordance with the relevant Public Benefit Entity accounting standards.
· The financial statements have undergone a review for completeness
and a comprehensive signoff matrix has been completed by relevant staff. Refer
to attachment B for a copy of the sign-off matrix.
The summary information from
Council-controlled organisations is sourced from the financial statements
and annual reports of these entities that all go through their own review and
audit processes.
3.3 Audit
representation letter
The audit
representation letters are provided by Council in connection with the audit of
the financial statements and activities and services statements of Christchurch
City Council (the City Council and group) for the year ended 30 June 2023 for
the purpose of expressing an opinion on the information presented. The audit is
carried out by Audit NZ on behalf of the Auditor General.
3.4 Summary
financial result of parent
The Council
parent entity’s Surplus after Tax of $414.8 million has increased by
92.4% from the
prior year.
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Revenue
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Financial Year
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Movement
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Type ($million)
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2023
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2022
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$
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%
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Rates
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636.9
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595.8
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41.1
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6.9%
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Increase
reflects the 4.66% rise as part of the 2022/23 Annual Plan and growth in
rates units.
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Subsidies
and grants
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234.4
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139.9
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94.5
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67.6%
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Increase
mainly due to increase in funding received for the Te Kaha multi-use arena
($143m in FY23 vs $49.2m in FY22)
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Development
and financial contributions
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55.0
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39.5
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15.5
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39.2%
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Increase
in residential construction on development sites.
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Other
revenue
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431.5
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317.8
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113.7
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35.8%
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Increase
mainly due to Vested Assets transferred from developers and Insurance receipts.
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Finance
revenue
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46.3
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22.5
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23.8
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106.8%
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Increase
is mostly due to floating-rate loans to CCHL (increased principal amount plus
higher market interest rates).
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Total revenue
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1,404.1
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1,115.5
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288.6
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25.9%
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Operating expenses
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Financial Year
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Movement
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Type ($million)
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2023
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2022
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$
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%
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Depreciation
and amortisation
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318.0
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281.1
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36.9
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13.1%
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Additional
depreciation on capitalised assets and impact of asset revaluation increases.
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Finance
costs
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113.0
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86.8
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26.2
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30.2%
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Increase
is mostly due to funding for floating-rate loans to CCHL (increased principal
amount plus higher market interest rates)
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Personnel
costs
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211.7
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205.6
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6.1
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3.0%
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Increase
is consistent with the annual salary increase applied in FY23.
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Other
expenses
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336.6
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323.0
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13.6
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4.2%
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Due
to increase in provision of services, maintenance of assets and other
operating expenses.
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Net
losses
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8.2
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3.5
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4.7
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134.3%
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Increase
due to negative fair value adjustments on financial instruments.
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Total operating expenses
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987.6
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900.1
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87.5
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9.7%
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Surplus before tax
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416.5
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215.4
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201.1
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93.3%
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Income
tax expense / (credit)
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1.6
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(0.2)
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1.8
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Current
year tax expense due to deferred tax movement.
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Surplus after tax
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414.8
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215.6
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199.2
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92.4%
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Other comprehensive revenue and expense
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1,300.0
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2,223.7
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(923.7)
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(41.5%)
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Decrease
mainly due to higher prior year fair value increases considered than actual
current year valuation results on wastewater assets.
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Total comprehensive revenue and expense
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1,714.8
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2,439.3
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(724.5)
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(29.7%)
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3.5 Adjustments
to the Annual Report after the ARMC recommended adoption on 16 October 2023:
An error
concerning the valuation of Wastewater Gravity pipes was discovered after the
ARMC meeting. The error has been corrected in the Annual Report attached,
resulting in an increase of the Wastewater network asset value and the
Revaluation Reserve, by $316 million.
The matter has
been fully discussed with and approved by Audit NZ, and also ARMC members
subsequently.
Attachments Ngā Tāpirihanga
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No.
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Title
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Reference
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Page
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a ⇩ 
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2022/23 Draft
Annual Report for adoption
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23/1753718
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9
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b ⇩
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2022/23 Annual
Report - Financial Statements Sign Off Matrix
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23/1749942
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356
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c ⇩
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Draft Letter
of Representation
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23/1754285
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368
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In addition to the attached documents, the following background
information is available:
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Document
Name – Location / File Link
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Not
applicable
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Confirmation of Statutory
Compliance Te Whakatūturutanga ā-Ture
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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.
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Signatories Ngā Kaiwaitohu
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Author
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Niel Koch -
Financial Controller
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Approved By
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Russell Holden
- Head of Finance
Leah Scales -
General Manager Resources/Chief Financial Officer
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