Finance and Performance Committee

22 November 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

22 November 2023

Unconfirmed

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Finance and Performance Committee

Open Minutes

Date: Wednesday 25 October 2023

Time: 9.31 am

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

Present

Chairperson

Deputy Chairperson

Members

Councillor Sam MacDonald

Councillor Melanie Coker

Deputy Mayor Pauline Cotter

Councillor Kelly Barber

Councillor Celeste Donovan

Councillor Tyrone Fields

Councillor James Gough

Councillor Tyla Harrison-Hunt

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/2023/00072

That the apology for lateness from Deputy Mayor Cotter be accepted.

An apology for lateness was also received from The Mayor however the meeting concluded before his arrival.

Councillor MacDonald/Councillor Coker Carried

2. Declarations of Interest Ngā Whakapuaki Aronga

Part B

Councillors MacDonald and Templeton declared an interest in Item 11 - Christchurch City Holdings Ltd Annual Report 2022/23 and Annual General Meeting 2023 Proxy and Voting Instructions.

Councillors Henstock and McLellan declared an interest in Item 12 - ChristchurchNZ Ltd - Annual Report for the year ended 30 June 2023 and ChristchurchNZ Holdings Ltd - Annual General Meeting Proxy and Voting Instructions.

Councillors Barber and Scandrett declared an interest in Item 14 - Venues Ōtautahi Ltd - Annual Report for the year ended 30 June 2023.

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

Part C

Committee Resolved FPCO/2023/00073

Officer Recommendations accepted without change

That the minutes of the Finance and Performance Committee meeting held on Wednesday, 20 September 2023 be confirmed.

Councillor Moore/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 McLellan left the meeting at 9.35am and returned at 9.38am during consideration of item 7.

Councillors Gough and Keown joined the meeting at 9.38am during consideration of item 7.

7. Key Organisational Performance Results - September 2023

Committee Resolved FPCO/2023/00074

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

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

Councillor Templeton/Councillor Keown Carried

Secretarial Note: The Committee requested that staff report back on the remedial action to be taken to bring the processing of building consents back to 19 working days, and the timeframe to achieve this. Staff also offered to provide the rationale for the building audit forecast.

8. Financial Performance Report - September 2023

Committee Resolved FPCO/2023/00075

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

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

Councillor MacDonald/Councillor McLellan Carried

Secretarial note: The Committee requested that information on the outcome of the review of expenditure qualifying for development contributions be re-circulated and/or a briefing be provided if necessary. In response to questions from the Committee, staff offered to provide information outlining the process and timing of actions to recover overdue unpaid rates.

Councillor Barber left the meeting at 10.02am and returned at 10.04am during consideration of item 9.

9. Capital Programme Performance Report September 2023

Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

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

Committee Resolved FPCO/2023/00076

Part C

That the Finance and Performance Committee:

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

2. Add Pages Road Bridge Renewal Project to the capital watchlist

3. Add the City to New Brighton MCR (Avon Ōtākaro Route) to the capital watchlist

Councillor Donovan/Councillor Templeton Carried

Secretarial note: The Committee requested that two further projects be added to the watchlist. They also requested an explanation of the Council’s tendering and contracting processes.

10. Capital Programme Change Management Delgations Review

Committee Resolved FPCO/2023/00077

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1. Approve capital project budget changes in all areas that are over $5m.

2. Receive a monthly report on all project budget changes over $500,000.

3. Note that as the change requests contain updated information relating to specific projects being tendered on the open market, and in contract, the monthly report referenced in recommendation 2 will be public excluded.

4. Review these delegations in 12 months.

Councillor MacDonald/Councillor Scandrett Carried

15. Local Government Funding Agency - Annual Report 2022/23 and Annual Meeting 2023

Committee Resolved FPCO/2023/00078

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1. Receives the Local Government Funding Agency’s Annual Report for the year ended 30 June 2023;

2. Appoints Leah Scales, General Manager/CFO Resources as proxy and the Chair of the Local Government Funding Agency’s Annual Meeting as alternate to cast the Council’s votes at the Annual Meeting on 23 November 2023; and

3. Agrees to vote in favour of the following Annual Meeting 2023 agenda items:

1(a) re-election of Philip Cory-Wright as a director for a fourth term;

1(b) election of David Rae as a director for a first term;

2(a) re-election of Tauranga City Council as a Nominating Local Authority to the Shareholders’ Council; and

2(b) re-election of Western Bay of Plenty District Council as a Nominating Local Authority to the Shareholders’ Council; and

4. Agrees to vote against item 4 – increases in director fees.

Councillor Coker/Councillor Scandrett Carried

Councillor Coker assumed the Chair for consideration of Item 11.

Councillors MacDonald and Templeton declared an interest in Item 11 - Christchurch City Holdings Ltd Annual Report 2022/23 and Annual General Meeting 2023 Proxy and Voting Instructions and sat back from all voting and discussions.

11. Christchurch City Holdings Ltd Annual Report 2022/23 and Annual General Meeting 2023 Proxy and Voting Instructions

Committee Resolved FPCO/2023/00079

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1. Receives Christchurch City Holdings Ltd’s Annual Report for the year ended 30 June 2023;

2. Appoints Councillor Coker as proxy, and Deputy Mayor Cotter as alternate to vote at Christchurch City Holdings Ltd’s Annual General Meeting on 24 November 2023; and

3. Agrees to vote in favour of all Annual General Meeting 2023 agenda items.

Councillor Scandrett/Councillor Barber Carried

Attachments

a Christchurch City Holdings Limited - Presentation to Council

Councillor MacDonald returned to the Chair.

Councillor Gough left the meeting at 11.02am and returned at 11.04am during consideration of item 12.

Councillor Moore left the meeting at 11.11am and returned at 11.14am during consideration of item 12.

Deputy Mayor Cotter joined the meeting at 11.14am during consideration of item 12.

12. ChristchurchNZ Ltd - Annual Report for the year ended 30 June 2023 and ChristchurchNZ Holdings Ltd - Annual General Meeting Proxy and Voting Instructions
	Officer Recommendations Ngā Tūtohu That the Finance and Performance Committee: 1. Notes ChristchurchNZ Ltd’s Annual Report for the year ended 30 June 2023; 2. Appoints Councillor [insert name] as proxy and Councillor [insert name] as alternate to vote at ChristchurchNZ Holdings Ltd’s Annual General Meeting on 23 November 2023; and 3. Agrees to vote in favour of all Annual General Meeting 2023 agenda items.
	Committee Resolved FPCO/2023/00080 Part C That the Finance and Performance Committee: 1. Notes ChristchurchNZ Ltd’s Annual Report for the year ended 30 June 2023; 2. Appoints Councillor Harrison-Hunt as proxy and Councillor Peters as alternate to vote at ChristchurchNZ Holdings Ltd’s Annual General Meeting on 23 November 2023; and 4. Note that ChristchurchNZ will be providing information to council on the review of the SailGP event, including the marine mammal management plan and any lessons learned that will be implemented into future events to minimise the risk to dolphins, as required under the management plan. Councillor MacDonald/Councillor Gough Carried
	Committee Resolved FPCO/2023/00081 3. Agrees to vote in favour of all Annual General Meeting 2023 agenda items. The division was declared carried* by 10 votes to 4 votes the voting being as follows:* *For:* Councillor MacDonald, Deputy Mayor Cotter, Councillor Barber, Councillor Gough, Councillor Harrison-Hunt, Councillor Keown, Councillor Moore, Councillor Peters, Councillor Scandrett and Councillor Templeton *Against:* Councillor Coker, Councillor Donovan, Councillor Fields and Councillor Johanson Councillor MacDonald/Councillor Gough Carried
	Attachments a ChristchurchNZ - Presentation to Council

The meeting adjourned at 11.24am and reconvened at 11.39am.

Councillor Templeton left the meeting at 11.56am during consideration of item 13 and returned at 11.58am during consideration of item 14.

13. Te Kaha Project - Elected Members Update

Committee Resolved FPCO/2023/00082

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1. Receive the information in the Te Kaha Project Report.

Councillor MacDonald/Councillor Scandrett Carried

Councillors Barber and Scandrett declared an interest in Item 14 - Venues Ōtautahi Ltd - Annual Report for the year ended 30 June 2023.

Councillor Gough left the meeting at 12.04pm and returned at 12.17pm during consideration of item 14.

14. Venues Ōtautahi Ltd - Annual Report for the year ended 30 June 2023

Committee Resolved FPCO/2023/00083

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1. Notes Venues Ōtautahi’s Annual Report for the year ended 30 June 2023.

Councillor McLellan/Councillor Keown Carried

Attachments

a Venues Ōtautahi - Presentation to Council

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

Committee Resolved FPCO/2023/00084

Part C

That at 12.20pm the resolution to exclude the public set out on pages 384 to 386 of the agenda be adopted.

Councillor MacDonald/Councillor Coker Carried

The public were re-admitted to the meeting at 1.06pm.

Karakia Whakamutunga: Given by all Councillors.

Meeting concluded at 1.06pm.

CONFIRMED THIS 22^ND DAY OF NOVEMBER 2023

Councillor Sam MacDonald

Chairperson

Finance and Performance Committee

22 November 2023

7. Key Organisational Performance Results - October 2023
Reference / Te Tohutoro:	23/1695165
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 – October 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, October 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 82.2%, against ELT’s target of 85%.

3.4 Key project milestone delivery is forecast at 92%, above ELT’s target, while Non-Key project delivery remains forecast below ELT’s target at 78% (both against a target of 85%). For project-specific information refer to the Capital Programme Performance Report.

3.5 Capital planning performance shows funding programme budgets allocated for FY2025 by 1^st March 2024 is reported at 88%. Budget drawdowns for FY2026 and 2027 by 1^st May 2024 is reported at 83%. Both forecasts improved from September, are below ELTs target of 90%, but are consistent with or better than previous years when the targets have been met.

3.6 Operational budget is forecast as having a surplus of $0.1m. For more information refer to the Financial Performance Report.

3.7 The overall capital programme is forecast to deliver at -8.2% of budget (against a target of between 0% and -10%). More information is available in the Capital Programme Performance Report. 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.)

4. Service delivery

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

4.1 Community levels of service (LOS) is forecast at 82.2% delivery against the performance target of 85%, a slight decline from September, similar to the pre-Annual Report audit 2022/23 year-end result of 81.8%. Much of this decline relates to forecast adjustments from on-going encouragement and support for level of service owners to appropriately forecast LOS performance, in line with the requirements of Audit and Risk Management Committee (ARMC). Doing so is intended to help ensure the organisation continues to effectively monitor and report service delivery exceptions.

4.2 The following recommendations (proposed with the June 2023 report) are in the process of being implemented, towards continued improvement of forecasting of LOS and other ELTs performance priorities for the year ahead:

4.2.1 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;

4.2.2 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;

4.2.3 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.

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

4.4 In summary, forecast LOS exceptions for October relate to:

4.4.1 Transport activity has ten exceptions related to road and footpath condition, resurfacing, including resident satisfaction, deaths or serious injury crashes, and transport mode-share.

4.4.2 Three Waters activities have twelve exceptions related to wastewater and water supply reliability and faults, and call outs, including resident satisfaction.

4.4.3 Building Regulation activity has three exceptions related to building consents and code of compliance certificates processing timeframes, and building warrant of fitness audits.

4.4.4 Planning & Consents activity has two exceptions related to resource management applications processed within statutory timeframes.

4.4.5 Regulatory Compliance and Licencing activity has three exceptions related to response to inappropriate noise levels, food control plan verification visits, and investigation of dangerous building reports.

4.4.6 Corporate Planning & Performance has one exception related to the implementation of the Long-term Plan programme.

4.4.7 Parks, Community Support & Partnerships and Citizen & Customer Services exceptions mostly relate to annual Resident Satisfaction Survey results.

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 92% delivery, on track to meet the target of 85%.

5.2 Non-Key project milestone delivery is forecast at 78% delivery against the target of 85%.

5.3 Each shows a small decline of (3% and 2% respectively) from September.

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

5.5 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) – noting there has been an increase in the overall FY24 capex budget since the August report which relates to late FY23 financial adjustments on Te Kaha, and a budget increase within the Parks programme.

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

5.7 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 $490m (blue line). To the end of October 2023, the total forecast capital delivery is $450m (green line), which equates to 91.8% delivery.

5.8 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. (Please note that Parakiore was formerly excluded along with Te Kaha, but has now been included in core capital calculations.)

5.9 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.

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

5.11 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.

5.12 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.

5.13 Capital planning performance shows funding programme budgets allocated for FY2025 by 1^st March 2024 is reported at 88%. Budget drawdowns for FY2026 and 2027 by 1^st May 2024 is reported at 83%. Both forecasts show improvement from September but remain below ELTs target of 90%. It is not unusual for forecasts to be below target at this time of the cycle. This was remedied last year by proactive engagement between PMO and service units resulting in targets being met, and a similar approach will be taken this year.

6. Finance

6.1 For September, the organisation reports a forecast operational surplus of $0.1m (after carry-forwards). For more information refer to the Financial Performance Report.

6.2 Overall capital programme budget expenditure forecast is at -8.2%. This remains on track to meet ELTs target (between 0% to -10%). More information is available in the Capital Programme Performance Report. This result includes core and externally funded work but excludes Te Kaha. (Parakiore, formerly excluded with Te Kaha, is now included in core capital.)

Attachments / Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	LOS Exceptions Commentary October 2023	23/1844637	24

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 Corporate Planning & Performance Analyst

Approved By

Peter Ryan - Head of Corporate Planning & Performance

Lynn McClelland - Assistant Chief Executive Strategic Policy and Performance

Finance and Performance Committee

22 November 2023

8. Financial Performance Report - October 2023
Reference / Te Tohutoro:	23/1830705
Report of / Te Pou Matua:	Russell Holden, Acting General Manager Resources/Chief Financial Officer (russell.holden@ccc.govt.nz)
General Manager / Pouwhakarae:	Russell Holden, Acting General Manager Resources/Chief Financial Officer (russell.holden@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 October 2023, including the current year forecast, and receive current treasury, debt and insurance claim 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 October 2023.

3. Brief Summary

3.1 The financial result for October shows a year to date operational surplus better than budget of $10.9 million and a forecast surplus better than budget of $0.1 million. This is a slight deterioration from the $0.6 million year end forecast last month.

3.2 The total capital programme, before signalled carry forwards, is forecast to under spent by $40.1 million. This comprises a forecast under spend of $40.2 million on the core/external funded programme and forecast earlier spend of $0.1 million on Te Kaha.

3.3 All treasury risk positions are within policy limits.

4. Operating Forecast

4.1 The current forecast surplus of $0.1 million better than budget is primarily due to savings in personnel costs, due to budgeted unfilled vacancies, largely offset by a reduction in the amount of staff time to be capitalised, reductions in dividends to be received and costs from the last financial year falling into the current financial year.

4.2 The forecast is updated monthly and alters as new information and events come to light.

4.3 Expenditure carry forwards are signalled at this point:

4.3.1 Water Reform $3.3m – The water reform project is anticipated to receive the full revenue entitlement under the works agreement by the end of the current financial year, those revenues are required to cover any water reform expenditure out to the end of FY-25, in addition any unspent fund must be returned to the Government.

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.

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5.3 Brief summaries of revenues and expenditures are highlighted below.

Revenues are forecast to be $2.9 million higher at year end. Key drivers of actual and forecast variances to budget include:

Variance	YTD	Forecast (after c/f)
Water Reform funding variation (offset by equivalent increase in cost and carry forward)	-	1.5m
Rating base growth	0.7m	1.2m
OCHT updated forecast (offset by equivalent increase in cost)	-	0.9m
Burwood Landfill operations	1.0m	0.6m
GEMs rates penalties	2.5m	-
Regulatory Compliance fines relating to dog registrations and alcohol licensing	0.3m	-
Spencer Park Fire Insurance Recoveries	0.2m	-
Greater Christchurch Partnership reduction in recoveries (offset by reduction in costs)	-	(0.3m)
Rates valuation objections	(0.3m)	(0.3m)
Transwaste dividends	(0.5m)	(0.6m)

5.4 Expenditure is $8.9 million lower than budget year to date, and forecast to be $2.7 million over 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 incurred.

Key drivers of actual and forecast variances to budget include:

Variance	YTD	Forecast (after c/f)
Staff Costs (Units carrying vacancies planned to be filled from start of the year and no rem settlements occurring to date)	7.1m	4.7m
Waste operating costs (lower recycling processing fees, lower residual waste disposal fees and lower organics processing costs)	1.5m	-
Citizens & Community operating and maintenance costs	1.0m	-
Community grants timing	0.7m	-
Strategic Policy use of external professional advice	0.4m	-
Waste lower landfill MFE levies	0.4m	-
Three Waters reactive maintenance costs and disputed claims	(0.5m)	-
Vertical Capital use of consultants to make up shortfalls in staffing	-	(0.4m)
Engagement of consultants for OPP, Burwood gas and Le Bons Bay consultations/remediations	(0.3m)	(0.5m)
Goods receipting delays resulting in FY-23 costs being incurred this year	(1.9m)	(1.9m)
Digital capitalisation budget overstatement	(0.8m)	(4.7m)
Total	8.9m	(2.7m)

5.5 In the 23/24 Annual Plan process, a change in structure had an unintended consequence of additional Digital costs being incorrectly capitalised in the budget and therefore not rated for. This has been corrected going forward, however leaves a funding gap in the current year.

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.

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Description automatically generated

Capital Expenditure

6.2 Gross capital expenditure of $183.6 million has been incurred year to date against a budget of $232.1 million.

6.3 Overall, total capital expenditure of $674.3 million is forecast (based on the PMO Forecast of $450m for CCC Capital-Core/External Funded) to be spent against the annual budget of $714.4 million. Of the $40.1 million variance, the majority is forecast to be 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 $0.9 million higher year to date, but forecast to be $1.5 million lower than budget after carry forwards comprising:

6.5.1 Timing delay in Crown contribution for Te Kaha ($10.8 million YTD), higher development contributions ($3.1m YTD), higher NZTA capital subsidies ($1.0m YTD), other miscellaneous capital revenues ($1.6m YTD) and reserve drawdowns ($6.0m YTD).

6.5.2 A review of expenditure qualifying for development contributions has been completed. This has resulted in a higher funding drawdown this year than budgeted.

7. Special Funds

7.1 The balance of funds available for allocation from the Capital Endowment Fund at 31 October 2023 was $1,967,935.

8. Treasury

Policy Compliance

8.1 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

8.2 Council’s actual and forecast borrowing and treasury-related advances are shown below ($ million):

8.3 Advances to related parties are primarily to Christchurch City Holdings Ltd (currently $641.2 million).

8.4 Net Debt by Jun-24 is estimated to be $338.3 million higher than at Jun-23, driven by capital investment (including Te Kaha).

Funding & Interest Rates

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

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Description automatically generated with medium confidence

8.6 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%. Projections are consistent with “higher for longer” expectations for market interest rates.

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

Steve Ballard - Group Treasurer

Bruce Moher - Manager Corporate Reporting

Mitchell Shaw - Reporting Accountant

Approved By

Russell Holden - Acting General Manager Resources/Chief Financial Officer

Finance and Performance Committee

22 November 2023

9. Capital Programme Performance Report October 2023
Reference / Te Tohutoro:	22/1683235
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 October 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 October 2023.

3. Brief Summary

3.1 The consolidated FY24 forecast for the CCC Capital component of the programme (excl. Te Kaha) as reported by Project Managers is $518.0m against a Budget of $490.2m. This has reduced by -$14m from prior month and this forecast is still likely to reduce further over the year.

3.2 The PMO forecast for the CCC Capital component remains at $450m for year-end. This is comparable to the year-end position from FY23.

3.3 The main exception is in the Digital portfolio where forecasts show significant departures from the current year Budget. ELT has provided guidance on the way forward and currently the Digital Team is working with Finance and the PMO to reflect this direction. Updates will be available in the next Monthly Report.

3.4 The FY24 Watchlist now comprises 25 Projects with the following added this month:

· 26601 Major Cycleway - Ōtākaro-Avon Route (Section 1) Fitzgerald to Swanns Road Bridge (OARC)

· 27273 Pages Road Bridge Renewal (OARC)

· 20836 South Library & Service Centre Earthquake Rebuild

Project selection will be reviewed again in mid-FY24.

3.5 CRAF and CERF Programmes are provided in the October Report and will be updated quarterly.

Attachments / Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	Attachment to report 23/1727009 (Title: Capital Programme Performance Report October 2023 - Final)	23/1850985	41

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

Finance and Performance Committee

22 November 2023

10. CWTP Insurance Update
Reference / Te Tohutoro:	23/1798547
Report of / Te Pou Matua:	Adrian Seagar, Manager Insurance and Asset Management (adrian.seagar@ccc.govt.nz) Sophie Meares, Senior Legal Counsel (sophie.meares@ccc.got.nz)
Senior Manager / Pouwhakarae:	Russell Holden, Acting General Manager Resources/Chief Financial Officer (russell.holden@ccc.govt.nz)

1. Purpose and Origin of Report Te Pūtake Pūrongo

1.1 The purpose of this report is to update the Finance and Performance Committee regarding progress with the CWTP Trickling Filter fire insurance claim.

1.2 This report is staff-generated following a request from Councillors at the previous Finance and Performance Committee meeting.

1.3 The information in this report is provided in order for the Committee and public to understand the current status of Council’s insurance claim. The content of this report is the only information that can be released at this time without prejudicing the claim.

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Receive the information in this report.

2. Note that updates will be provided to the Committee on a quarterly basis or as required.

3. Brief Summary

Insurance Cover

3.1 The Christchurch Wastewater Treatment Plant is insured under Council's above ground assets policy, which has an excess of $250,000 for non-natural disaster events. The insured value at the time of the fire was based on valuations carried out by external valuers as at 30 June 2021 and is sufficient to cover the restoration of the trickling filters.

3.2 This policy also has an allowance of $10 million for "additional increased costs of working" to cover extra costs incurred to maintain operations following an event. There is also an amount of $5 million to cover costs incurred in preparing the claim.

3.3 The claim was accepted approximately 3 weeks after the fire and insurers have made interim payments of $25 million to date. These interim payments have already been mostly spent to reconfigure the Plant with the interim solution pending restoration of the trickling filters.

3.4 Due to the structure of Council's policy, six major corporate insurers in New Zealand are involved in this claim. Vero is the lead insurer and the other five are co-insurers for differing shares and will follow Vero’s position on the claim.

Investigations

3.5 Engineers working for Council and our insurers agreed a scope of works for assessing the damage caused by the fire. These assessments included:

· Visual inspections

· 3D mapping and drone surveys

· Reviews of existing documentation

· Strength testing of concrete samples

· Laboratory analysis (in London) for chemical changes in the concrete samples

3.6 The result of all these investigations were provided in a damage assessment report to Council. This report also included details of what it would take to restore the trickling filters and an estimated cost of doing so.

Current position

3.7 Discussions earlier this year between Council’s engineers and those representing the insurers largely reached agreement over the extent of damage and a restoration methodology. Estimated costs for the restoration have been calculated by both Council and insurers and the base repair costs are similar.

3.8 Council has commissioned the next stage of design for the restoration of the trickling filters. This builds on the design work to date and will include further details on the requirements for:

· Civil and structural engineering

· Mechanical and piping

· Electrical and Instrumentation

· Process engineering (including hydraulic, air flow, distribution systems)

3.9 In addition to this we have been investigating other treatment processes to benchmark the trickling filter process against. We are aware that technology has advanced since the trickling filters were originally constructed and want to make sure we are getting the best possible outcome for our citizens.

Attachments Ngā Tāpirihanga

There are no attachments to 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

Adrian Seagar - Manager Insurance & Asset Management

Sophie Meares - Senior Legal Counsel

Approved By

Helen White - Head of Legal & Democratic Services

Russell Holden - Acting General Manager Resources/Chief Financial Officer

Finance and Performance Committee

22 November 2023

11. Council-controlled Organisations - Annual Reports 2022/23
Reference / Te Tohutoro:	23/1146609
Report of / Te Pou Matua:	Linda Gibb, Performance Advisor, Resources (linda.gibb@ccc.govt.nz)
Senior Manager / Pouwhakarae:	Russell Holden, Acting General Manager Resources/Chief Financial Officer (russell.holden@ccc.govt.nz)

1. Nature of Information Update and Report Origin

1.1 To note the Annual Reports for 2022/23 for Council-controlled organisations, to re-appoint directors to Te Kaha Project Delivery Ltd and to authorise a payment to Riskpool following a legal call on Members and former Members.

1.2 The Annual Reports were received from the Council-controlled organisations (CCOs) before 30 September 2023 as required by section 67 of the Local Government Act 2002 (LGA). The Riskpool call was received on 13 November.

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Notes the Annual Reports for 2022/23 for the following Council-controlled organisations:

a. Transwaste Canterbury Ltd;

b. Civic Building Ltd; and

c. Te Kaha Project Delivery Ltd.

2. Approves the re-appointment of Mr Richard Peebles and Mr Steve Reindler to the board of Te Kaha Project Delivery Ltd for second terms of up to three years, with the proviso that the terms can be brought to an earlier end at such a time that their governance obligations have ceased due to completion of the stadium project; and

3. Authorises the payment of $558,500 plus GST to Riskpool to meet the legal call on members (and former members) of Fund Years 7, 10, 11 and 12 based on the costs of meeting claims and operating expenses being greater than contributions received from members.

3. Brief Summary

Transwaste Canterbury Ltd

3.1 Transwaste operates the Kate Valley Landfill into which it is required to accept all waste from within the Canterbury region that is non-hazardous. The company is owned jointly by five Canterbury councils (50%) and Waste Management NZ Ltd (50%). The Council owns 38.9% with the remainder of the Council’s shareholding owned by Ashburton, Hurunui, Selwyn and Waimakariri district councils. Its Annual Report for 2022/23 is at Attachment A.

3.2 The following table presents Transwaste’s performance for the year ended 30 June 2023 compared with its Statement of Intent (SOI) targets and the prior year’s performance:

	Actual $000	SOI target $000	Last year $000
Earnings before interest and tax (EBIT)	22,633	23,095	21,932
Total dividends paid · CCC 38.9% share	18,300 7,119	16,100 6,263	16,400 6,380
Total assets	72,011	Not forecast	68,987

Government waste levy ($)	10,794	11,400	7,289
Total waste to landfill (tonnes)	359,810	380,000	364,439

3.3 EBIT was lower against SOI target by 2% and higher against last year’s performance by 3.2%. Notwithstanding the negligible variances, key impacts over the year included:

· lower volumes of waste received into the landfill compared with budget (-5.3%) and last year (-1.3%), largely due to the slow-down in large construction projects in Christchurch.

· lower revenue of around $1.8 million against target and $1.2 million against last year from a reduction in the quantity of electricity sold into the national grid due to a generator being out of action for half the year (-$0.4 million) and more volatile electricity prices (-$1.4 million); and

· inflation-linked revenue increases from higher transport and disposal prices coupled with cost control brought EBIT broadly in line with target and the prior year’s EBIT.

3.4 Dividends distributed to shareholders were higher than both the SOI target and last year’s dividend by circa $2 million, reflecting Transwaste’s use of imputation credits which if not used would have been lost.

3.5 Total assets have increased from last year by $3 million from construction of landfill assets.

3.6 The Government’s waste levy increased by 50% in 2023 from $20 to $30 per tonne to discourage dumping of waste at landfills. It has increased a further $20 per tonne (67%) to $50 per tonne from 1 July 2023.

3.7 Transwaste has a number of initiatives that it is committed to, including maximising capture and destruction of landfill gas and export of the energy created from it, reducing greenhouse gas emissions from the haulage of waste (noting that Transwaste itself does not create the waste it receives which is the source of the landfill gas emissions) and pest management, planting and ensuring growth of native trees and bush in the Tiromoana Bush area.

3.8 As has been the case previously, Transwaste has been unable to export all the electricity it has produced due to transmission line capacity constraints. It continues to discuss the potential for line improvements with MainPower NZ Ltd with progress being made that could see some additional capacity available from 2025.

3.9 Transwaste is constrained in the number of trips it can take on Mt Cass Road, set by the Hurunui District Council (HDC) in whose district the landfill is. This was exceeded in 2022/23 though by less than 1%. Transwaste was aware of this risk early and engaged with HDC with the latter deeming it not significant. A major factor in the need for additional trips was the extra material originating from the Bromley treatment works.

Civic Building Ltd

3.10 The company’s income is generated mostly from the Council’s finance lease payments for occupancy of Civic Building, less the costs of servicing the loan advanced by the Council for the purchase of the building. Civic Building’s Annual Report for 2022/23 is at Attachment B.

Actual

$000

SOI target

$000

Variance

$000

Last year

$000

Variance

$000

Net profit/(loss) before tax

(2)

437

-439

(130)

+128

Total assets

51,776

57,191

-5,415

56,301

-4,525

3.11 CBL repaid debt and equity principal of $4.5 million during the year. The transaction was not forecast in the SOI as the board had not, at that stage decided to make the repayment. There has been a consequential reduction in the value of total assets.

3.12 Against the SOI target, the variance is -$439,000, made up of higher revenue of $71,000 and higher costs of $538,000.

3.13 Revenue increased by $144,000 from higher prior period costs recovered from the tenant (the Council), offset by lower interest revenue of $67,000 reflecting the reduced cash on deposit due to repaying debt and equity.

3.14 Expenses increased by $334,000 interest on the loan from the Council which was charged before the repayment of debt and reflects the upward spike in interest rates during the year and around $176,000 of inflationary impacts on operating costs (e.g., insurance, rates, building maintenance). The operating costs will be on-billed to the Council (as tenant) and the reimbursement will be recorded in a later period.

3.15 Against the same period last year, the net loss before tax is lower by $128,000 made up of higher revenue of $67,000 and lower expenses of $61,000.

3.16 Revenue increases were $108,000 of operating costs from the Council as the building’s tenant and increased interest on cash held of $60,000 (cash held increased as operating lease payments were received and was reduced by the debt and equity repayment, all of which was subject to higher interest rates).

3.17 Expenses were lower by $192,000 interest paid on the Council loan due to the debt repayment offset by higher property management costs and inflationary impacts (which will be on-charged to the Council as tenant) of $130,000.

3.18 Non-financial performance targets continue to be progressed in the ordinary course of business.

Te Kaha Project Development Ltd – Half year report and governance

3.19 Te Kaha Project Delivery Ltd is the governance body tasked with commissioning the design and construction of Te Kaha. The responsibility and accountabilities for the final design and construction of Te Kaha are held with the Council’s Capital Delivery – Major Facilities Team which reports to the Council monthly. Its Annual Report for 2022/23 is at Attachment C.

Actual

$000

SOI target

$000

Variance

$000

Last year

$000

Variance

$000

Expenses / Revenue

623

680

-57

487

+136

3.20 Against SOI target, costs are lower by $57,000 relating to operating costs that were expected in 2022/23 but for which the activity will not occur or be charged for until 2023/24.

3.21 Against last year, costs are higher by $136,000 largely attributable to less than a full 12 months of board and executive management charges in the prior year due to the timing of board roles being filled. In addition, there was a period in which the former project director had exited the company and his replacement starting, leading to a variance in expenses of $109,000.

3.22 Non-financial performance targets, of the many targets one only has not been achieved. That is for alignment with the Project Management Plan (PMP) being maintained. Alignment has been maintained; the target is ‘not achieved’ because the board was unable to formally assess it until three days after year end.

Governance

3.23 Te Kaha Project Delivery Ltd was established in 2020 with directors appointed for a three-year term. It was expected that they would need only serve one term of three years. However, that assumption did not come to pass and there is a requirement for an additional term for each to be considered. The directors affected are Mr Richard Peebles and Mr Steve Reindler.

3.24 It is proposed that they are both re-appointed for a period of up to three years, with the proviso that the terms can be brought to an earlier end at such a time that their governance obligations have ceased due to completion of the stadium project.

3.25 Council staff consider that the continuity of the Te Kaha board membership is critical to the success of the project. The Chair of the Te Kaha board has been consulted and supports the proposed re-appointments.

3.26 The proposal meets the requirements of the Council’s Policy for the Appointment and Remuneration of Directors of Council Organisations as follows:

· all proposed appointments and re-appointments to be accompanied by a skills and expertise matrix of the board’s governance requirements and how the proposed mix of directors meet the requirements (clause 8.8) – refer Attachment D to this report.

· appointments to the governing bodies of CCOs will generally be for no more than two terms of three years each unless the Council decides otherwise (clause 8.4).

· the matters discussed will include, without limitation, whether the skills of the incumbent add value to the work of the governing body or other skills are needed, the director’s length of tenure, and/or succession planning (clause 8.14); and

· the Council will be the final decision-maker (clause 7.17).

Civic Financial Services – Half year report to 30 June 2023 and RiskPool

3.27 The Council has a 12.6% ownership stake in Civic. There are 73 other local authority shareholders. The company’s main business is the administration of superannuation schemes for local government employees of which investment funds total around $0.54 billion. These funds are managed by investment specialists. Its half year report is at Attachment E.

3.28 Civic is not a CCO. It is exempted under section 6(4)(f) of the Local Government Act 2002 (LGA) due to its previous insurance activities that brought it under the Municipal Insurance Act 1960 (now repealed).

Actual

2023

$000

FY SOI target

2023

$000

Prior half year 2022

$000

Surplus before tax

320

147

100

Superannuation funds under management

537,000

Not projected

500,000

3.29 Against target, the surplus is higher by $173,000 due to higher interest rates on investments.

3.30 Against last year, the surplus is higher by $220,000 reflecting lower staff costs due to a full-time staff member reducing to part-time hours in the current half year, higher interest rates on investments and IT costs reducing following website redevelopment in the 2022 year.

3.31 Riskpool

3.32 Riskpool is a mutual liability fund governed by a trust deed. It has provided public liability and professional indemnity cover for councils in the past but since 2017 has been in run-off due to lack of demand for its insurance products (the private sector provides more competitively products now).

3.33 As a mutual fund, each member agrees to insure each other by paying contributions to a fund that the manager holds for claims. If there are insufficient funds and reinsurance to meet claims, members must make up the deficit in line with their percentage shareholding in the fund. Despite having exited Riskpool schemes in 2016, the Council is legally required to pay any calls made while the schemes continue to exist. The Council’s share of any call is 12%. The last call was made in 2019 - the Council’s share was $269,322.81.

3.34 The process of running off the schemes is taking longer than the five years initially signalled by Riskpool largely due to legal action taken against it by Napier District Council. Riskpool has advised that it is making a call on shareholders of a total of $12.9 million, of which this Council’s share is advised at $558,500 plus GST. This cost is unbudgeted, and therefore requires the Council’s approval for payment.

3.35 Riskpool’s letter dated 10 November 2023 is at Attachment F. It advises that the call on members is backed by actuarial advice from Melville Jessup Weaver. It also advises that there may be further calls in the future.

Other CCOs: Rod Donald Banks Peninsula Trust, Riccarton Bush Trust, Central Plains Water Trust

3.36 Annual reports with audited financial statements have not been received for these CCOs due to AuditNZ delays. Staff understand the audits will be completed by the end of 2023.

Attachments Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	Transwaste Canterbury Ltd - Annual Report 2022/23	23/1601035	95
b ⇩	Civic Building Ltd - Annual Report 2022/23	23/1612700	160
c ⇩	Te Kaha Project Delivery Ltd - Annual Report 2022/23	23/1805651	191
d ⇩	Te Kaha Project Delivery Ltd Governance - Board skills and expertise matrix	23/1822252	215
e ⇩	Civic Financial Services - Half year report to 30 June 2023	23/1810834	216
f ⇩	Riskpool - Call on members	23/1871793	220

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

Author	Linda Gibb - Performance Monitoring Advisor CCO
Approved By	Russell Holden - Acting General Manager Resources/Chief Financial Officer

Finance and Performance Committee

22 November 2023

12. Annual General Meetings by written resolution - Council-controlled organisations
Reference / Te Tohutoro:	23/1146698
Report of / Te Pou Matua:	Linda Gibb, Performance Advisor, Resources (linda.gibb@ccc.govt.nz).
Senior Manager / Pouwhakarae:	Russell Holden, Acting General Manager Resources/Chief Financial Officer (russell.holden@ccc.govt.nz)

1. Nature of Decision or Issue and Report Origin

1.1 To pass a shareholder's resolution in favour of Council-controlled organisations (CCOs) holding their 2023 Annual General Meetings (AGMs) by written resolution.

1.2 This report has been written following receipt of directors' resolutions from the boards of the CCOs that are included in this report.

1.3 Section 120 of the Companies Act 1993 requires the board of a company to call an annual meeting of shareholders not later than six months after the balance date of the company. The balance date of the CCOs to which this report refers is 30 June.

1.4 Section 122(4) of the Companies Act 1993 provides that it is not necessary for the board of a company to call, or for a company to hold an annual meeting of shareholders if everything required to be done at that meeting is done by resolution.

1.5 CCC One Ltd, CCC Five Ltd, CCC Seven Ltd and Ellerslie International Flower Show Ltd are shelf companies and therefore do not trade. The Council’s Chief Executive is the sole director of the shelf CCOs. Her signed director’s resolutions are at Attachment A.

1.6 Civic Building Ltd, Venues Ōtautahi and Te Kaha Project Delivery Ltd are trading CCOs but do not have any AGM business to transact. Directors’ resolutions are at Attachments B, C and D respectively.

1.7 The decisions in this report are administrative only and are therefore of low significance in relation to the Christchurch City Council’s Significance and Engagement Policy. The level of significance was determined by considering the extent to which the decisions might impact the community.

2. Officer Recommendations / Ngā Tūtohu

That the Finance and Performance Committee:

a) Agrees to pass shareholder resolutions for the 2023 annual meeting business of the following Council-controlled organisations:

a. non-trading ‘shelf’ companies - CCC One Ltd, CCC Five Ltd, CCC Seven Ltd and Ellerslie International Flower Show Ltd; and

b. trading companies – Civic Building Ltd, Venues Ōtautahi and Te Kaha Project Delivery Ltd.

3. Reason for Report Recommendations / Ngā Take mō te Whakatau

3.1 To meet the requirements of section 120 of the Companies Act 1993 which requires a company to hold an annual meeting within six months of its balance date.

4. Alternative Options Considered / Ētahi atu Kōwhiringa

4.1 The only alternative option is for the CCOs to hold formal meetings.

5. Policy Framework Implications Ngā Hīraunga ā- Kaupapa here

Strategic Alignment /Te Rautaki Tīaroaro

5.1 This report is consistent with the Council’s commitment to good governance of its CCOs. This is aligned to the efficient delivery of the outcomes sought by the Council's Long Term Plan (2021 - 2031).

Policy Consistency / Te Whai Kaupapa here

5.2 The decision is not relevant to the Council’s Plans and Policies.

Impact on Mana Whenua Ngā Whai Take Mana Whenua

5.3 The decision does not involve a significant decision in relation to ancestral land or a body of water or other elements of intrinsic value, therefore this decision does specifically impact Mana Whenua, their culture and traditions.

5.4 The decision does not involve a matter of interest to Mana Whenua and will not impact on our agreed partnership priorities with Ngā Papatipu Rūnanga.

5.5 The decision is administrative only.

Climate Change Impact Considerations Ngā Whai Whakaaro mā te Āhuarangi

The proposals in this report will not impact climate change or emissions reductions since no operational activity is created.

Accessibility Considerations / Ngā Whai Whakaaro mā te Hunga Hauā

5.6 Not relevant.

6. Resource Implications Ngā Hīraunga Rauemi

Capex/Opex / Ngā Utu Whakahaere

6.1 There are no costs associated with this report as it is an administrative requirement only.

7. Legal Implications Ngā Hīraunga ā-Ture

Statutory power to undertake proposals in the report / Te Manatū Whakahaere Kaupapa

7.1 Local Government Act 2002.

Other Legal Implications / Ētahi atu Hīraunga-ā-Ture

7.2 Sections 120 of the Companies Act 1993 requires a company to hold an AGM within six months of its balance date and section 122 provides the option to hold the AGM by written resolution rather than at a formal meeting of shareholders.

8. Risk Management Implications Ngā Hīraunga Tūraru

8.1 Legal risk is managed by complying with the provisions of the Companies Act 1993.

Attachments / Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	CCO shelf companies - Directors' resolutions to hold annual meeting by written shareholder resolution	23/1788010	228
b ⇩	Civic Building Ltd - Directors' resolution to hold AGM by written shareholder resolution	23/1799246	232
c ⇩	Venues Otautahi - Directors' resolution to hold AGM by written shareholder resolution	23/1774388	233
d ⇩	Te Kaha Project Delivery Ltd - Directors' resolution to hold AGM by written shareholder resolution	23/1721948	234

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

Author	Linda Gibb - Performance Monitoring Advisor CCO
Approved By	Russell Holden - Acting General Manager Resources/Chief Financial Officer

Finance and Performance Committee

22 November 2023

13. ChristchurchNZ Holdings Ltd - Quarter 1 2023/24 Performance Report
Reference / Te Tohutoro:	23/1243285
Report of / Te Pou Matua:	Linda Gibb, Performance Advisor, Resources (linda.gibb@ccc.govt.nz)
Senior Manager / Pouwhakarae:	Russell Holden, Acting General Manager Resources/Chief Financial Officer (russell.holden@ccc.govt.nz)

1. Nature of Information Update and Report Origin

1.1 This report presents ChristchurchNZ Holdings Ltd's (CNZHL's) Quarter 1 2023/24 Performance Report.

1.2 This report has been written following receipt of CNZHL's Quarter 1 Performance Report on 10 November 2023 as required by section 66(2) of the Local Government Act 2002.

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Receives ChristchurchNZ Holdings Ltd’s Quarter 1, 2023/24 Performance Report for the period 1 July – 30 September 2023.

3. Brief Summary

3.1 CNZHL’s Quarter 1 2023/24 Performance Report for the period 1 July to 30 September 2023 is at Attachment A.

3.2 The key financial results, against Statement of Intent (SOI) targets and the prior year’s performance is shown in the following table:

	Actual $m	SOI target $m	Prior year $m
CCC funding	4.0	4.0	4.1
3^rd party funding	0.9	0.7	2.6
*Total funding*	*4.9*	*4.7*	*6.6*
Expenditure	(4.1)	(4.1)	(6.2)
Total surplus/(loss)	0.8	0.6	0.4
Total Assets	10.4	Not forecast	16.1

3.3 Against target, the surplus is higher by $0.2 million from recognition of central government funding earlier than expected, and which was forwarded to other Canterbury regional districts.

3.4 Against last year, the surplus is higher by $0.4 million which reflects the timing of receipt and expenditure of third party COVID-19 recovery revenue from central government last year.

3.5 The reduction in total assets of $6.3 million reflects the application of the Government’s COVID-19 recovery funding.

3.6 All performance targets (levels of service) are expected to be met by year end.

Attachments Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	ChristchurchNZ Holdings Ltd Quarter 1, 2023/24 Performance Report	23/1875202	237

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

Author	Linda Gibb - Performance Monitoring Advisor CCO
Approved By	Russell Holden - Acting General Manager Resources/Chief Financial Officer

Finance and Performance Committee

22 November 2023

14. Christchurch City Holdings Ltd - Quarter 1 2023/24 Performance Report
Reference / Te Tohutoro:	23/1724195
Report of / Te Pou Matua:	Linda Gibb, Performance Advisor, Resources (linda.gibb@ccc.govt.nz)
Senior Manager / Pouwhakarae:	Russell Holden, Acting General Manager Resources/Chief Financial Officer (russell.holden@ccc.govt.nz)

1. Purpose and Origin of Report Te Pūtake Pūrongo

1.1 This report presents Christchurch City Holding Ltd's (CCHL's) Quarter 1 2023/24 performance 'traffic lights' against Statement of Intent (SOI) performance targets.

1.2 This report has been written following receipt of CCHL's Quarter 1 Performance Report on 10 November 2023.

1.3 Section 66 of the Local Government Act 2002 provides that a CCO must report on the organisation’s operations to its shareholders within 2 months after the end of the quarter. The report must include the information required to be included by the CCO’s SOI. CCHL’s Quarter 1 performance ‘traffic lights’ report meets these requirements.

1.4 The traffic lights report is at Attachment A. Note the following:

· Orion advises it will be unable to meet this year’s carbon emissions’ target as a result of greater activity in the post-COVID-19 environment than its emissions reduction plan anticipated. However, it advises that it will achieve a lower level of emissions than its 2020 baseline and its emissions last year as well as remaining on target to meet its undertaking of net neutral emissions by 2030.

· Orion has reported that it has had a health and safety event that did, or could have resulted in serious injury to a service provider. The mechanisms that Orion has in place to de-energise the lines on contact performed as expected to minimise impact.

· Christchurch International Airport Ltd (CIAL) is indicating potential reduction in total passenger numbers and revenue for the year due to Air New Zealand’s advice of reduced capacity on domestic routes. This is because of a global fix required for engines resulting in Air New Zealand bringing forward maintenance. At this stage CIAL is signalling it remains on target to meet its NPAT targets.

· Lyttelton Port has experienced a downturn in container volumes, with some rebound expected in Quarter 2. Reductions have also been seen at other New Zealand ports and is driven by economic conditions and changes in coastal shipping (e.g. at present more containers are being routed directly to the port of destination rather than being delivered to a port for its re-distribution).

1.5 CCHL’s strategic update report on the PX agenda will provide commercially sensitive information on these issues.

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Receives Christchurch City Holdings Ltd’s Quarter 1 2023/24 Performance Report.

Attachments Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	Christchurch City Holdings Ltd Quarter 1 2023/24 Performance Report	23/1870719	251

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

Author	Linda Gibb - Performance Monitoring Advisor CCO
Approved By	Russell Holden - Acting General Manager Resources/Chief Financial Officer

ITEM NO.	GENERAL SUBJECT OF EACH MATTER TO BE CONSIDERED	SECTION	SUBCLAUSE AND REASON UNDER THE ACT	PLAIN ENGLISH REASON	WHEN REPORTS CAN BE REVIEWED FOR POTENTIAL RELEASE
16.	Public Excluded Finance and Performance Committee Minutes - 25 October 2023			Refer to the previous public excluded reason in the agendas for these meetings.
17.	Christchurch City Holding Ltd - Strategic Update as at 30 September 2023	s7(2)(b)(ii), s7(2)(h)	Prejudice Commercial Position, Commercial Activities	To protect commercial information which, if it became publicly known could adversely impact the CCHL group's commercial outcomes.	1 October 2024 After release of the Annual Report for 2023/24 to the public.
18.	Eastman Sutherlands Hoon Hay Wetlands (Te Kuru) Change Request	s7(2)(i)	Conduct Negotiations	Subject to commercial negotiations	Once the commercial negotiations have been completed or at final project close out.
19.	Visibility of Capital Project Budget Changes: October 2023	s7(2)(h)	Commercial Activities	A quarterly summary of Change Requests is provided this month in an accompanying public excluded Report as it contains information on specific projects being tendered in the open market and accordingly it may put Council in a disadvantaged position.	This report can be released to the public once all commercial negotiations and contracts have been concluded, and subject to the approval of the Head of Procurement and Contracts
20.	Contract 4600000690/1 with EcoCentral Limited to own and operate the Materials Recovery Facility (MRF), maintain and operate Council owned buildings on the MRF site and maintain and operate the three city transfer stations	s7(2)(b)(ii), s7(2)(h), s7(2)(i)	Prejudice Commercial Position, Commercial Activities, Conduct Negotiations	Contract Negotiations, commercially sensitive information	31 January 2024 On review and approval from the Head of Procurement and Contracts
21.	PAP - 129 Gloucester St RFP - Result and Preferred Respondent	s7(2)(h), s7(2)(i)	Commercial Activities, Conduct Negotiations	The Council must negotiate and communicate with affected parties, which includes commercials discussions	31 December 2024 The report can be released if/when any development agreement with the preferred respondent becomes unconditional.