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

28 February 2024

Unconfirmed

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Finance and Performance Committee

Open Minutes

Date: Wednesday 31 January 2024

Time: 9.31 am

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

Present

Chairperson

Deputy Chairperson

Members

Councillor Sam MacDonald

Councillor Melanie Coker

Mayor Phil Mauger

Deputy Mayor Pauline Cotter

Councillor Kelly Barber

Councillor Celeste Donovan

Councillor Tyrone Fields

Councillor James Gough – via audio/visual link

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

Russell Holden

Acting General Manager - Resources / CFO

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/2024/00001

That the apology received from Councillor McLellan for lateness be accepted.

Councillor MacDonald/Deputy Mayor Carried

2. Declarations of Interest Ngā Whakapuaki Aronga

Part B

Councillors MacDonald and Templeton declared an interest in Public Excluded Item 14 – Christchurch City Holdings Ltd – Appointment of Director to Orion New Zealand Ltd.

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

Part C

Committee Resolved FPCO/2024/00002

That the minutes of the Finance and Performance Committee meeting held on Wednesday, 13 December 2023 be confirmed.

Councillor Coker/Mayor 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 Donovan joined the meeting at 9.34am during consideration of Item 7.

The Mayor left the meeting at 9.41am and returned at 9.43am during consideration of Item 7.

Councillor Harrison-Hunt joined the start of the meeting via audio/visual link and arrived in the Council Chambers at 9.42am during consideration of Item 7.

7. Key Organisational Performance Results - December 2023

Committee Resolved FPCO/2024/00003

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

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

Mayor/Councillor Coker Carried

8. Financial Performance Report - December 2023

Committee Resolved FPCO/2024/00004

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

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

Councillor Henstock/Councillor Scandrett Carried

Councillor Gough left the meeting at 10.14am during consideration of Item 9.

Councillor McLellan joined the meeting at 10.37am during consideration of Item 9.

Councillor Henstock left the meeting at 10.42am and returned at 10.44am during consideration of Item 9.

9. Capital Programme Performance Report December 2023

Committee Resolved FPCO/2024/00005

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

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

Councillor Keown/Councillor Barber Carried

10. Council-controlled organisations - Appointment of new non-trading shelf company director and removal of former director

Committee Resolved FPCO/2024/00006

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1. Approves the removal of the former Chief Executive as a director of the Council’s non-trading shelf companies – CCC One Ltd, CCC Five Ltd, CCC Seven Ltd and Ellerslie International Flower Show Ltd; and

2. Approves the appointment of the Interim Chief Executive, Ms Mary Richardson as a director of the Council’s non-trading shelf companies – CCC One Ltd, CCC Five Ltd, CCC Seven Ltd and Ellerslie International Flower Show Ltd.

Mayor/Councillor Coker Carried

11. Te Kaha Project - Elected Members Update

Committee Resolved FPCO/2024/00007

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 Harrison-Hunt Carried

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

Committee Resolved FPCO/2024/00008

Part C

That Abby Foote (Chair) and Kelly Hyde (Head of Impact and Performance – via audio/visual link) of Christchurch City Holdings Ltd remains after the public have been excluded for Item 14 of the public excluded agenda as they have knowledge that is relevant to that item and will assist the Council.

AND

That at 11.00am the resolution to exclude the public set out on pages 92 to 93 of the agenda be adopted.

Councillor MacDonald/Councillor Coker Carried

The public were re-admitted to the meeting at 11.10am.

Karakia Whakamutunga: Given by all Councillors.

Meeting concluded at 11.10am.

CONFIRMED THIS 28TH DAY OF FEBRUARY 2024

Councillor Sam MacDonald

Chairperson

Finance and Performance Committee

28 February 2024

7. Key Organisational Performance Results - January 2024
Reference / Te Tohutoro:	24/138331
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 – January 2024 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, January 2024, for the third year of the LTP 2021-31 (financial year to June 2024).

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3.3 Community level of service delivery is forecast at 83.6%, against ELT’s target of 85%.

3.4 Key project milestone delivery is forecast at 83%, moving below ELT’s target of 85%, while Non-Key project delivery remains forecast below ELTs target at 79% (target also 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 90%, forecasting to achieve ELTs target. Budget drawdowns for FY2026 and 2027 by 1^st May 2024 is reported at 84%. Both forecasts show no change from December. There is time remaining for the FY2026 and 2027 drawdowns target to be met.

3.6 Operational budget is forecast as having a surplus of $2.0m (after carry-forwards). For more information refer to the Financial Performance Report.

3.7 The overall capital programme is forecast to deliver at -4.1% of budget (against a target of between 0% and -10%), an improvement of 4.0% from the September to December forecasts. More information is available in the Capital Programme Performance Report. This forecast 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 83.6% delivery against the performance target of 85%, an improvement of 1% from December and showing steady improvement from November.

4.2 The following recommendations (proposed with the June 2023 performance 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 January relate to:

4.4.1 Transport activity has nine 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 ten exceptions related to water supply compliance, wastewater and water supply reliability, responsiveness to faults and call outs, including resident satisfaction, and water loss and average water consumption.

4.4.3 Building Consenting activity has two exceptions related to building consents and code of compliance certificates processing timeframes.

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 Citizens and Community activities have eight exceptions: (Art Gallery (1); Community Support & Partnerships (1); Citizen & Customer Services (2); Parks (4), which mostly relate to annual Resident Satisfaction Survey results (survey results due April-May 2024).

4.5 The scatter diagram below is an overview of the performance of the top-ten activities (in terms of budget size).

· 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 83% delivery, declining a further 5% from December, and moving below ELT’s target of 85%.

5.2 Non-Key project milestone delivery is forecast at 79% delivery (against the target of 85%), a small decline (1%) from December.

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

5.4 Below is a forward view of capital delivery performance (financial) for the first three years of the LTP 2021-31, with an overview of capital delivery in recent years against plan. This view takes into account a revised year-end budget delivery figure for 2022/23, and the 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.

5.5 After March 2024, once 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).

5.6 For the year 3 of the LTP 2021 (through the Annual Plan 2023/24), the revised total programme budget set for CCC to deliver is $490m (blue line). To the end of January 2024, the total forecast capital delivery has been increased to $470m (green line), which equates to 95.9% delivery.

5.7 This forecast delivery value is an increase from the previous year forecasts (2022/23) 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.)

5.8 Council delivery for 2022/23 and delivery forecast for 2023/24 show a distinctive lift from that seen the previous four years. This historic level of delivery (approx. $450m per annum) is informing the development of the draft LTP 2024-34. 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.

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

5.10 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.

5.11 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, to effectively implement the LTP and subsequent Annual Plans.

5.12 Capital planning performance shows improvement for both targets, with funding programme budgets allocated for FY2025 by 1^st March 2024 reported at 90%. This means the target is forecast to meet ELTs performance priority target. Budget drawdowns for FY2026 and 2027 by 1^st May 2024 is reported at 84%, remaining below ELTs target of 90% for now. It is not unusual for forecasts to be below target at this time of the cycle. Ongoing collaboration between PMO and service units is expected to see this ELT goal being met for May, as has been in the case in previous years.

6. Finance

6.1 For January, the organisation reports a forecast operational surplus of $2.0m (after carry-forwards). For more information refer to the Financial Performance Report.

6.2 Overall capital programme budget expenditure forecast is at -4.1%. This remains on track to meet ELTs target (between 0% to -10%). This is a 4.0% improvement from the September to December forecasts. 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	24/201776	21

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

Document Name – Location / File Link

Not applicable

Confirmation of Statutory Compliance / Te Whakatūturutanga ā-Ture

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

(a) This report contains:

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

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

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

Signatories / Ngā Kaiwaitohu

Authors

Amber Tait - Performance Analyst

Boyd Kedzlie - Senior 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

28 February 2024

8. Financial Performance Report - January 2024
Reference / Te Tohutoro:	24/189820
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 January 2024, 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 January 2024.

3. Brief Summary

3.1 The financial result for January reports a year to date operational surplus of $22.4m, which is $7.6 million lower than budgeted. This is due to the $20 million interim CCHL dividend budgeted in December, now expected in February. A surplus of $2.0 million is forecast for year-end, after accounting for proposed carry forwards.

3.2 The total capital programme, before signalled carry forwards, is forecast to be under spent by $28.7 million. This comprises a forecast under spend of $20.2 million on the core/external funded programme and forecast under spend of $8.5 million on Te Kaha.

3.3 All treasury risk positions are within policy limits.

4. Operating Forecast

4.1 The current forecast surplus of $5.4 million before carry forwards is driven by; rates income, pool revenues, Water Reform additional funding and savings in personnel costs, partially offset by reductions in staff capitalisation in the Digital unit.

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

4.3 Expenditure carry forwards signalled at this point are:

4.3.1 Water Reform $3.3 million – 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, any unspent fund must be returned to the Government.

4.3.2 Art Gallery Grants Revenue $0.1 million – The Art Gallery has received two grants in relation to funding for publications and applications, which were budgeted to be received and spent in FY-25, a carry forward is therefore required.

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 repayments. This revenue is referred to below as ‘Funds not available for Opex’ and is removed to show the year to date and forecast operational cash surplus or deficit.

	Year to Date Results			Forecast Year End Results			After Carry Forwards
$m	Actual	Budget	Var	Forecast	Budget	Var	Carry Fwd	Var
Revenues	(651.3)	(666.1)	(14.8)	(997.7)	(993.8)	3.9	(0.1)	4.0
Expenditure	449.3	458.4	9.1	758.8	760.5	1.7	3.5	(1.8)
Funds not available for Opex	179.6	177.7	(1.9)	233.5	233.3	(0.2)	-	(0.2)
Operating (Surplus)/Deficit	(22.4)	(30.0)	(7.6)	(5.4)	-	5.4	3.4	2.0

5.3 Brief summaries of revenue and expenditure variances are highlighted below.

5.4 Revenues are $14.8 million behind budget year to date primarily driven by a delay in the payment on the CCHL interim dividend to council and are forecast to be $4.0 million higher at year end. Key drivers of actual and forecast variances to budget include:

Variance	YTD	Forecast (after c/f)
Recreation & Sports Centres increased participation	2.1m	1.1m
Rating base growth	1.2m	1.2m
Waste operations (primarily Burwood landfill & Ecocentral Rebate)	3.2m	2.2m
Rates penalties	1.6m	0.5m
Rates valuation objections	(0.3m)	(0.3m)
Transwaste dividends	(0.5m)	(0.6m)
Better Off Funding grants	(1.9m)	-
CCHL Interim Dividend delay in payment	(20.0m)	-

5.5 Expenditure is $9.1 million lower than budget year to date, and forecast to be $1.8 million over budget at year end. The year-to-date variance is primarily driven by lower personnel costs due to higher than budgeted vacancies.

Key drivers of actual and forecast variances to budget include:

Variance	YTD	Forecast (after c/f)
Staff Costs (Units carrying vacancies, forecast under review after recent remuneration settlements)	6.8m	5.5m
Waste operating costs (lower recycling processing fees, lower residual waste disposal fees and lower organics processing costs)	1.5m	(0.8m)
Grant Payments (delays in projects and timing)	2.4m	0.7m
Transport Operating and Maintenance Costs (timing of works being undertaken)	1.1m	-
Citizens & Community operating and maintenance costs	1.1m	(0.7m)
Goods receipting delays resulting in FY-23 costs being incurred this year	(1.9m)	(1.9m)
Digital capitalisation budget overstatement (see 5.6)	(2.6m)	(3.8m)
Total	8.4m	(1.0m)

5.6 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 in the LTP, however it leaves a funding gap in the current year.

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

6. Capital Expenditure and Revenue

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

	Year to Date Results			Forecast Year End Results			After Carry Forwards
$m	Actual	Budget	Var	Forecast	Budget	Var	Carry Fwd	Var
Core Programme	206.7	264.6	57.9	462.8	464.6	1.8	-21.6	23.4
External Funded Programme	27.3	15.9	-11.4	49.2	25.7	-23.6	-21.4	-2.1
Less unidentified Carry Forwards	0.0	0.0	0.0	-42.1	0.0	42.1	63.1	-21.0
Core/External Funded Programme	234.0	280.5	46.5	470.0	490.2	20.2	20.2	0.0
Te Kaha	103.5	122.2	18.7	215.7	224.2	8.5	8.5	0.0
Total Capital Programme	337.5	402.7	65.2	685.7	714.4	28.7	28.7	0.0
Revenues and Funding	(217.1)	(218.9)	(1.8)	(298.2)	(311.2)	(13.0)	(15.1)	2.1
Borrowing required	120.4	183.9	63.4	387.5	403.2	15.7	13.6	2.1

Capital Expenditure

6.2 Gross capital expenditure of $337.5 million has been incurred year to date against a budget of $402.7 million.

6.3 Overall, total capital expenditure of $685.7 million is forecast (based on the PMO forecast of $470 million for CCC Capital-Core/External Funded) to be spent against the annual budget of $714.4 million. Of the $28.7 million variance, the majority is forecast to be carried forward at year end.

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 $1.8 million lower than budget year to date, and forecast to be $13.0 million lower before carry forwards comprising:

6.5.1 Timing delays in NZTA capital subsidies, partially offset by higher development contributions and higher miscellaneous capital revenues.

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 January 2024 was $1,731,935

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

8.2 Council’s actual and forecast borrowing and Advances are shown below ($ million):

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

8.4 Net Debt by Jun-24 is estimated to be $326.2 million higher than at Jun-23, driven by capital expenditure, around half of which is for 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).

A graph of a graph showing a number of years

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%; pre-Covid, in 2018/19, it was 5.2%.

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

Mitchell Shaw - Reporting Accountant

Steve Ballard - Group Treasurer

Karthik MG - Reporting Accountant

Bruce Moher - Manager Corporate Reporting

Approved By

Russell Holden - Acting General Manager Resources/Chief Financial Officer

Finance and Performance Committee

28 February 2024

9. Capital Programme Performance Report January 2024
Reference / Te Tohutoro:	24/2189
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 January 2024.

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 January 2024.

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 $500.2m against a Budget of $492.0m. This has reduced by -$20m from prior month.

3.2 The PMO forecast for the CCC Capital component has been revised to $470m for year-end (an increase from the prior forecast of $450m). The increase reflects cost pressures that are evident across the programme and the wider construction sector and is also supported by good progress and a solid level of programme achievements in the year to date.

3.3 The main budget exception is in the Digital portfolio where forecasts show significant departures from the current year budget. This has been reported in prior months and the proposed LTP addresses this capital phasing issue with a better year-year balance across longer term programme provisions.

3.4 The FY24 Watchlist is included in Attachment A – Appendix 1.

3.5 CRAF and CERF Programme quarterly updates are included in Attachment A - Appendix 2. With the Government’s change in position on funding CERF, there has been considerable disruption to the CERF programme and further commentary is provided on those projects that are able to continue and those that are suspended. The Transport Team is readjusting its overall programme and reviewing previously deferred works that were made to accommodate CERF. They are now reassigning resources into the CRAF programme and other works. Transport will be reporting further on CERF funding adjustment impacts.

3.6 The Monthly Change Report is included in the public excluded section due to contract commercial sensitivity.

Attachments / Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	Capital Programme Performance Report - January 2024 - Final	24/239169	37

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 - Administrator Officer

Approved By

Lynn McClelland - Assistant Chief Executive Strategic Policy and Performance

Finance and Performance Committee

28 February 2024

10. CWTP Insurance Update
Reference / Te Tohutoro:	24/11122
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 resolution FPCO/2023/00081 dated 22 November 2023 which noted that updates on the insurance claim will be provided to the Finance and Performance Committee quarterly or as required.

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

3. Summary

Current position

3.1 As reported in the previous update, Council is proceeding with the concept design for the restoration of the trickling filters. In line with our insurance entitlement, the intention is to restore the trickling filters to a condition substantially the same as, but not better or more extensive than, their condition when new, and including any alterations that may be necessary to comply with any law.

3.2 This design work is progressing well and is due to be complete within the next two months and will be reported and overseen by the Insurance Subcommittee. As part of the design process an estimated cost of restoration will be calculated, as well as a forecast of cost escalation over the life of the project.

3.3 If potential improvements beyond the Council’s insurance entitlement are considered, these will be allowed for in the Long-Term Plan.

Updated adaptive recovery plan and communications plan

3.4 At the Finance and Performance Committee meeting on 22 November 2023, councillors requested staff to consider:

· whether an updated adaptive recovery plan could be put onto the Council’s website with timelines on what will happen in the next 2 to 3 years, and

· whether a communications plan for the updating of the Council’s website on this project could be developed.

3.5 The updated adaptive recovery plan is Attachment A. The timeline included in this plan extends only to mid-2024, rather than 2-3 years as requested. We do not yet have an estimate of the timing for completion of detailed design or construction.

3.6 This will be reported to the Insurance Subcommittee as soon as possible and included in subsequent Finance and Performance Committee updates. The updated adaptive recovery plan will be uploaded to the Council’s website at the same time that the agenda for this meeting is published.

3.7 The communications plan is Attachment B.

Plant operations

3.8 Our team has been focused on operating the CWTP and oxidation pond system as effectively as possible. However, the seasonal variation in flow and load at this time of year has caused some odour issues recently.

3.9 Staff are undertaking a range of both process and odour monitoring at the CWTP and responding as appropriate with a range of measures. The odour monitoring is being undertaken by both staff and an external contractor.

3.10 The temporary activated sludge plant is continuing to operate at maximum capacity with no redundancy. The system is continuing to operate well most of the time, however, as mentioned, the seasonal variation in flow and load at this time of the year has caused some issues.

3.11 Council staff are working closely with the contractor on the pond aerators to resolve the outstanding issues and to ensure all aerators are available for the winter period.

Attachments Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	Updated Adaptive Recovery Plan	24/218346	82
b ⇩	Communications Plan	24/150461	88

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

28 February 2024

11. Reprogramming of Transport Choices Projects
Reference / Te Tohutoro:	23/1871908
Report of / Te Pou Matua:	Jacob Bradbury, Manager Planning & Delivery Transport Lynette Ellis, Head of Transport and Waste
Senior Manager / Pouwhakarae:	Jane Parfitt, Interim General Manager Infrastructure, Planning and Regulatory Services (Jane.Parfitt@ccc.govt.nz)

1. Purpose and Origin of Report Te Pūtake Pūrongo

1.1 The purpose of this report is to recommend how Council address the removal of Transport Choices funding in a way that ensures that projects are either funded from a different source, retimed, or considered through a future Annual Plan.

1.2 The report is staff generated in response to Government changes to the Transport Choices programme.

1.3 The decisions in this report are of high significance in relation to the Christchurch City Council’s Significance and Engagement Policy. The Transport Choices projects are of Metropolitan Significance, and the level of significance was determined by looking across the entirety of the programme: the numbers of people affected, the current community interest as evidenced by the hearings and press coverage, and the potential costs and benefits to Council and residents.

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Receives the information contained in this report

2. Resolves that work will stop on the following Transport Choices projects and they will be assessed for inclusion in a future Annual Plan:

a. #72759 Westmorland Cycle Connections

b. #72755 Te Aratai Cycle Connections

c. #72760 Little River Link Cycle Connections – Simeon and Nash

d. #74469 Improving Bromley Roads

3. Resolves that #72758 Richmond Greenway and #72764 Linwood Roading Improvement will be returned to the Community Board to be prioritised as part of the Christchurch Regeneration Acceleration Facility (CRAF) programme.

4. Notes that work will continue for projects that have a signed Schedule 2 or are able to be accommodated within existing programmes, including:

a. #72777 School Safety Linwood

b. #72760 Little River Cycle Connections – Nga Puna Wai

c. #72779 Linwood Bus Stops

d. #72776 Slow Speed Neighbourhood - Linwood

5. Notes that work will continue for #34094 Linwood Village Streetscape Enhancements.

6. Notes that there is no impact on rates that were struck for the 2023/24 Financial Year.

7. Instructs staff to restart work on seven projects that were previously deferred:

a. #68430 Ferry Road – Active Transport Improvements

b. #68389 Condell Ave Street Renewals

c. #66406 Glandovey Road West and Idris Road – Active Transport Improvements

d. #2034 Burwood & Mairehau Intersection Improvement

e. #17060 Cycle Connections – Uni-Cycle

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

g. #65986 Gardiners Road Shared Path - Wilkinsons to Styx Mill - Stage One

3. Reason for Report Recommendations Ngā Take mō te Whakatau

3.1 On 20December 2023, Council received a letter from Hon Simeon Brown, Minister of Transport stating that any Transport Choices projects that did not have a signed Schedule 2 would not be funded.

3.2 The following diagram outlines the changes that were made to the Christchurch Regeneration Acceleration Facility (CRAF) work programme to generate the Transport Choices work programme. The diagram also talks to the proposed recommendations for this report.

A diagram of a transportation choice

Description automatically generated

3.3 The following projects will continue because they have a signed schedule 2 or are able to be delivered through existing programmes that are funded within the 2021/31 Long Term Plan:

3.3.1 School Safety Linwood

3.3.2 Linwood Bus Stops

3.3.3 Nga Puna Wai section of Little River Link Cycle Connections

3.3.4 Slow Speed Neighbourhood Linwood

3.4 Linwood Village Streetscape Improvements will continue as per the direction following the Notice of Motion at the 6 December 2023 meeting. This project is under contract and able to be completed this construction season. The remaining amount to be spent this year ($1,779,066) is less than the assumed local share for the overall Transport Choices programme ($4.2m). Therefore, the rates impact is nil.

3.5 The Richmond Greenway and Linwood Road Improvements projects are returned to the relevant Community Boards to be delivered through the CRAF programme. The projects may require reprioritisation of CRAF projects, which may delay some progress. Staff will liaise with Community Board staff to assist with the prioritisation process for these two projects.

3.6 The remaining projects will be considered as projects in a future Annual Plan (likely to be 2025/26) or Long-Term Plan processes. The projects that will be delayed are:

3.6.1 Westmorland Cycle Connections

3.6.2 Te Aratai Cycle Connections

3.6.3 Little River Link Cycle Connections – Simeon and Aidenfield

3.6.4 Improving Bromley Roads

3.7 Advantages of the recommended proposal:

3.7.1 There are no rates impacts to the proposed changes for the current financial year or the first year of the 2024/34 Long Term Plan

3.7.2 The designs for all projects have been completed at little cost to Council.

3.7.3 Allows time for alternative funding opportunities (e.g. NZTA) to be investigated.

3.8 Disadvantages of the recommended proposal:

3.8.1 Community expectations have been raised, regarding the delivery of these project.

3.8.2 Delaying project will mean that they could be impacted by escalation of costs due to inflation.

3.8.3 Future potential changes to the local environment may lead to additional costs for re-design and/or additional consultation.

3.9 Seven projects that were deferred to resource the Transport Choices programme can be re-started. They have been prioritised as projects that:

3.9.1 Can be progressed within current staffing levels.

3.9.2 Likely to be low spend in this financial year.

3.9.3 Generally, have an agreed subsidy method from the NZ Transport Agency.

3.9.4 Are included in the draft 2024/34 Long Term Plan.

4. Alternative Options Considered Ētahi atu Kōwhiringa

4.1 Continue Transport Choices projects at Council cost: This has not been recommended due to the financial impact on Council.

4.1.1 Advantages: Would continue momentum gained during design and consultation; deliver on community expectations; reduce the chance of scope/cost creep; reduce further delay on CRAF projects

4.1.2 Disadvantages: Significant financial impact on Council (Approx $20m of capital expenditure ~0.2% on rates); unknown level of National Land Transport Funding (NTLF) subsidy; removes resource availability to restart deferred projects

4.2 Do not restart deferred projects: This is not recommended, as resources are available to start projects, which have agreed NLTF funding and community support.

4.2.1 Advantages: Limit financial impact to Council and limit the risk of continuing with projects that may not be continued in the 2024/34 Long Term Plan.

4.2.2 Disadvantages: Projects that the community are expecting to be delivered are not progressed.

5. Detail Te Whakamahuki

Background

5.1 The Transport Choices programme aims to aid the transition towards a low emission and climate resilient future, by funding projects that make it easier to travel in ways that are good for the environment.

5.1.1 Christchurch City Council was initially successful in attracting funding for 14 projects.

5.1.2 At the Finance and Performance Committee meeting of 22 February 2023, staff were instructed to progress with 11 of these projects.

5.1.3 Due to issues with deliverability, one further project was halted by mutual consent between Council and NZTA (Gloucester Street Central City East-West Connection). Staff informed Councillors of this via Memo on 1 June 2023.

5.2 The Transport Choices programme of 10 projects was developed from a range of different sources. The aim was to deliver more, at lower cost to ratepayers:

5.2.1 Some of the projects came from projects that were not programmed until much later in the current LTP. This includes the Westmorland Cycle Connection; and the Simeon Street and Aidenfield sections of Little River Link Cycle Connections.

5.2.2 In some cases, the work forms part of a rolling programme of work where staff have delegated authority to prioritise the specific projects undertaken within the programme. This includes: Slow Speed Neighbourhoods; and Bus Stop Improvements.

5.2.3 In the case of Improving Bromley’s Roads, the potential for additional funding allowed work packages that were identified but unfunded to be accelerated.

5.2.4 In the case of projects originally part of the Christchurch Regeneration Acceleration Fund (CRAF) scope (diagram below), the potential additional funding allowed more projects to be delivered. This includes: Te Aratai College Cycle Connection; Richmond Neighbourhood Greenway; and Linwood and Woolston Roading and Transport Improvements.

5.3 The final list of projects being progressed was:

5.3.1 Richmond Greenway

5.3.2 Linwood Village Streetscape Enhancements

5.3.3 Westmorland Cycle Connections

5.3.4 Little River Link Cycle Connections

5.3.5 Improving Bromley Roads

5.3.6 Te Aratai College Cycle Connection

5.3.7 Linwood Bus Stops

5.3.8 Slow Speed Neighbourhood Linwood

5.3.9 Linwood Road Improvements

5.3.10 School Safety Linwood

5.4 Council developed designs for these projects through an iterative process involving NZTA’s design team, and then conducted an extensive consultation process through the “Way Safer Streets” campaign.

5.4.1 Of the 10 projects, 9 had designs and detailed traffic resolutions approved at a special Council meeting held over the 21st and 22nd September.

5.4.2 The designs and detailed traffic resolutions for the remaining project (Linwood Bus Stop Improvements) have been split into tranches. The first batch of sites was approved at Council on 1st November 2023; the remaining sites had been expected to be presented to Council in early-2024.

5.5 On 27th October 2023, NZTA informed Councils that no further funding agreements would be signed until they “receive clear direction from the incoming government”.

5.6 At the Council meeting of 6th December 2023, through a Notice of Motion Council decided to start construction on the Linwood Village Streetscape project, despite the risk that this may not receive funding through the Transport Choices programme.

Cancellation of the Transport Choices programme

5.7 On 20 December 2023, Council received a letter from Hon Simeon Brown, Minister of Transport (see Attachment A). The letter advised that funding for Transport Choices projects that do not have agreed construction funding (Schedule 2) will not be funded moving forward.

5.7.1 It is noted that in an informal discussion with Elected Members on 14 November 2023, staff were asked to compile a priority list for the Transport Choices programme, to allow staff to react swiftly in the event of further changes in Transport Choices funding without having to return to Council. However, in light of this letter from the Minister this is no longer required so has not been enacted.

Current status of Transport Choices projects

5.8 The current status of Council’s Transport Choices programme is shown in Attachment B.

5.8.1 All projects with a tick in the Detailed Design column are at a stage where construction could be started quickly.

Next steps – Projects that will continue

5.9 The following projects have a Schedule 2 signed and will therefore continue.

5.9.1 School Safety Linwood

5.9.2 Nga Puna Wai section of Little River Link Cycle Connections

5.9.3 Infrastructure purchase for Linwood Bus Stops.

5.10 The installation of the Linwood Bus Stop infrastructure will be completed through the delivery of existing projects that are included within either the PT Futures programme and the Delivery Package – Public Transport Stops, Shelters and Seating Installations.

5.11 The Slow Speed Neighbourhood Linwood project will continue as it can be delivered through the Delivery Package – Minor Road Safety Improvements and will be eligible for NZTA subsidy through the NZTA Low-Cost-Low-Risk funding category. This was advised to Councillors via memo on 20 December 2023.

5.12 Following the Council meeting of 6 December 2023, staff have progressed the construction of Linwood Village Streetscape Enhancements. This project was ready for construction and able to be completed in this construction season. The remaining cost of this project is $3,155,718.

Next Steps – Projects to return to the CRAF

5.13 It is proposed the following projects are delivered by the CRAF programme and re-prioritised by the Community Board if appropriate:

5.13.1 Linwood Road Improvements

5.13.2 Richmond Greenway

5.14 Community Boards may need to review and reprioritise CRAF projects following this decision. This may have an impact on the progress of some other CRAF projects in the affected areas. Staff will liaise closely with Community Board staff to assist with the prioritisation process for these two projects.

Next Steps – Projects to be considered through a future planning process

5.15 It is proposed that the following projects are considered for inclusion in a future Annual Plan process:

5.15.1 Te Aratai Cycle Connections – over the course of Transport Choices the scope of this project developed to deliver a higher level of service to the local community, particularly Te Aratai College. This project was well supported by the school community and the team have managed to work through the majority of concerns some of the local businesses had.

5.15.2 Improving Bromley Roads – this project was developed to deliver road safety measures in and around the Bromley streets. The team worked hard to engage with a community that had little trust in Council delivering on the promises made. As such, not continuing with the project could lead to further community cynicism and disengagement. This project could be delivered early in the LTP through the NZTA Low-Cost-Low-Risk funding category.

5.15.3 Both of these projects would have to progress through NZTA funding and business case processes before any potential subsidy could be assured.

5.16 It is proposed that the following projects are delivered when programme level funding is available. Likely as part of the 2027/37 Long Term Plan:

5.16.1 Simeon and Aidenfield sections of the Little River Link Cycle Connections - These projects would be delivered through Cycle Connections – Little River Link.

5.16.2 Westmorland Cycleway – this project would be re-scoped and started when the budget is available through Cycle Connections – Nor’West Arc.

Previously Deferred Projects

5.17 On 22 February 2023 the Finance & Performance Committee made the decision to put the Transport Choices projects on to the capital programme. To manage resource constraints a number of ongoing projects were also deferred. There is now an opportunity to restart some of these projects.

5.17.1 The deferred projects have been included in Attachment C, sorted by staff’s assessment of the benefit of restarting these. The sorting takes into account the availability of subsidy through the NLTF, the likelihood of this remaining on Council’s programme in the next LTP period, time-pressures (including interfaces with other projects), and community support.

5.17.2 Staff recommendation is to restart the top 7 ranked projects (Ferry Road to Gardiners Road) for the following reasons:

· Can be progressed within current staffing levels.

· Likely to be low spend in this financial year (<$0.5m overall) but enable delivery of some of these projects early in the next financial year.

· Mostly these have agreed subsidy methods from the NZ Transport Agency.

· Are included in the draft 2024/34 Long Term Plan.

Affected Areas

5.18 The decisions in this report affect the following wards/Community Board areas:

5.18.1 Waitai Coastal-Burwood-Linwood Community Board

5.18.2 Waipapa Papanui-Innes-Central Community Board

5.18.3 Waihoro Spreydon-Cashmere-Heathcote Community Board

5.18.4 Waipuna Halswell-Hornby-Riccarton Community Board

5.18.5 Waimāero Fendalton-Waimairi-Harewood Community Board

6. Policy Framework Implications Ngā Hīraunga ā- Kaupapa here

Strategic AlignmentTe Rautaki Tīaroaro

6.1 This is aligned with Council’s stated strategies, specifically:

6.1.1 Financial Strategy: “Provide cost-effective infrastructure and facilities”

6.1.2 Infrastructure Strategy: “Reducing greenhouse gas emissions” and “Delivering within financial constraints”

6.2 This report supports the Council's Long Term Plan (2021 - 2031):

6.3 Transport

6.3.1 Activity: Transport

· Level of Service: 10.0.2 Increase the share of non-car modes in daily trips - >=37% of trips undertaken by non-car modes

· Level of Service: 10.0.41 Reduce emissions and greenhouse gases related to transport - <=1.08 million tonnes of CO2 equivalents

· Level of Service: 10.4.4 Improve user satisfaction of public transport facilities (number and quality of shelters and quality of bus stop) - >=73% resident satisfaction

· Level of Service: 10.5.2 Improve the perception that Christchurch is a cycling friendly city - >=67% resident satisfaction

· Level of Service: 10.5.42 Increase the infrastructure provision for active and public modes - >= 600 kilometres (total combined length)

· Level of Service: 16.0.10 Maintain the perception that Christchurch is a walking friendly city - >=85% resident satisfaction

Policy Consistency Te Whai Kaupapa here

6.4 The decision is consistent with Council’s Plans and Policies.

Impact on Mana Whenua Ngā Whai Take Mana Whenua

6.5 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 not specifically impact Mana Whenua, their culture and traditions.

6.6 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

Climate Change Impact Considerations Ngā Whai Whakaaro mā te Āhuarangi

6.7 The decisions in this report are likely to:

6.7.1 Have little impact to adaptation to the impacts of climate change.

6.7.2 Contribute negatively to emissions reductions.

6.8 The Transport Choices projects were about encouraging and supporting mode shift towards cycling, micro-mobility, walking, and public transport, with their inherently lower carbon footprint. The selection of Linwood as the focal point of the programme was an acknowledgement that the area suffers from “transport poverty”, so the potential for use of new facilities was considered high. Therefore, the removal of these projects mean these benefits will not be realised in the short term.

Accessibility Considerations Ngā Whai Whakaaro mā te Hunga Hauā

6.9 While many of the projects referred to in this report support improved accessibility, the report is about funding for projects, and the accessibility considerations are better dealt with in the design detail of the individual projects.

7. Resource Implications Ngā Hīraunga Rauemi

Capex/Opex Ngā Utu Whakahaere

7.1 At the time of the 2023/24 Annual Plan the Council local share of the Transport Choices programme was calculated as $4,205,379.

7.2 The financial implications of the proposed budget changes as a result of the changes to the Transport Choices programme are outlined in the following table.

*Remaining Spend includes remaining Transport Choices Schedule 1 costs (90% subsidy).

† Linwood Village includes around $390k of actual spend incurred before Transport Choices

7.3 The Council local share spend to date on the Transport Choices programme plus the estimated remaining spend is $3,400,855 ($386,088 + $3,014,766). This is less than was rated for as per 7.1)

8. Legal Implications Ngā Hīraunga ā-Ture

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

8.1 Council have the delegation to make changes to the capital programme

Other Legal Implications Ētahi atu Hīraunga-ā-Ture

8.2 There is no legal context, issue, or implication relevant to this decision

9. Risk Management Implications Ngā Hīraunga Tūraru

9.1 Given the recent change of government and lack of a published Government Policy Statement on transport, there is little clarity on the availability of NLTF subsidy

10. Next Steps Ngā Mahinga ā-muri

10.1 Staff will implement the outcome of any Council decision.

Attachments Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	Letter from Minister of Transport regarding Transport Choices.	23/2136057	101
b ⇩	Status of Christchurch City Council Transport Choices programme	23/2136058	102
c ⇩	Deferred projects - consideration for re-starting	23/2138874	103

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

Jacob Bradbury - Manager Planning & Delivery Transport

Lynette Ellis - Head of Transport & Waste Management

Approved By

Lynette Ellis - Head of Transport & Waste Management

Jane Parfitt - Interim General Manager Infrastructure, Planning and Regulatory Services

Finance and Performance Committee

28 February 2024

12. Riccarton Bush Trust - Financial performance
Reference / Te Tohutoro:	24/33543
Report of / Te Pou Matua:	Linda Gibb, Performance Advisor, Resources Group (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 the Riccarton Bush Trust's (RBT's) half year performance report for the period 1 July-31 December 2023 and annual reports for 2021/22 and 2022/23.

1.2 This report has been written following receiving RBT's half year report for 2023/24 in January 2024 and annual reports for 2021/22 and 2022/23 in November 2023.

1.3 Audit New Zealand signed off RBT’s financial statements for both 2022 and 2023 on 22 November 2023. Its audit report in the 2022 annual report advises that the audit is late due to an auditor shortage in New Zealand and the consequential effects of COVID-19, including lockdowns. The audit of the 2023 annual report was unable to be signed off until the 2022 had been. Therefore, it was received late as well.

The Council has had a line of sight to RBT’s performance from staff reporting on its half year reports in both 2022 and 2023. Half year reports do not require audited financial statements.

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Receives the Riccarton Bush Trust’s Half Year Report for the period 1 July- 31 December 2023;

2. Receives the Riccarton Bush Trust’s Annual Report for 2022/23; and

3. Receives the Riccarton Bush Trust’s Annual Report for 2021/22.

3. Summary

Half year 2023/24 performance

3.1 RBT’s half year report for 2023/24 is at Attachment A. Financial performance is shown in the table below:

	6 months Actual 2023/24 $000	6 months SOI target 2023/24 $000	Variance $000	6 months Actual 2022/23 $000	Variance $000
Revenue	322	310	+12	465	-143
Expenses	(502)	(310)	-192	(631)	+129
Surplus/(deficit)	(180)	0	-180	(166)	-14

3.2 Against the SOI target, the deficit was higher by $180,000 made up of increased revenue of $12,000 (3.8%) and higher costs of $192,000 (62%). The variance in costs includes depreciation of $151,000 not included in the SOI forecast and $29,000 made up of a combination of unplanned legal expenditure to support a submission on the Christchurch District Plan of around $10,000, additional insurance costs of $7,000 following the increase in value of Riccarton House in 2022/23 and greater than expected inflationary pressure, technology costs to address issues following the Trust’s website being compromised of $3,600 and remuneration costs of around $10,000 (14%). Remuneration increased partly due to wage inflation, a significant increase in the living wage and additional bush and house tours.

3.3 Against the six months last year, the deficit is higher by $14,000, made up of lower revenue of $143,000 offset by lower costs of $129,000. For the most part this reflects a mismatch in timing between funding received from the Council and expenditure incurred for house painting.

3.4 Non-financial performance targets - performance achieved shows increases in overall participation in activities including the on-site café, independent tours and bush walks compared to the same period in the previous year.

3.5 All targets are on track to be met by year end other than the Bush Enhancement Project. The Project is discussed in the Annex to this report.

Annex

3.6 An account of RBT’s financial performance over the past six years is annexed to this report.

Annual Report 2022/23

3.7 RBT’s annual report for 2022/23 is at Attachment B. The following table summarises financial performance in 2022/23 compared with SOI targets and with 2021/22.

	Actual 2022/23 $000	SOI target 2022/23 $000	Variance $000	Actual 2021/22 $000	Variance $000
Revenue	934	567	+367	688	+246
Expenses	1,103	567	+536	872	+231
Surplus/(deficit)	(170)	0	-170	(184)	-14

3.8 Against the SOI target, the deficit is higher by $170,000 largely due to depreciation expense of $304,000 offset by the Council’s capital grant of $123,500. Neither of these items are forecast in the SOI.

3.9 In general, an increase in visitors following COVID-19 led to operating revenue gains (including commissions from the on-site restaurant and bush and house tour revenues) lead to higher revenue of $24,000 and interest income of $8,500. A recovery was made of $18,000 for additional insurance premium incurred in the prior year (as a result of an uplift in value of Riccarton House).

3.10 Reflecting the increase in demand for tours as well as inflation (including living wage adjustment) remuneration expenses increased by $23,000 and general expenses (including asset maintenance) by around $20,000.

3.11 Against the prior year (2021/22) the deficit is lower by $14,000. More visitors than expected post COVID-19 restrictions led to higher donations of $55,000, grants by $17,000, commissions from the on-site restaurant of $23,000 and income from house and bush tours of $24,000. Offsetting these gains were increased depreciation of $33,000 as a result of an uplift in value of Riccarton House and historic house expenses of $50,000 due to unexpected repair works (funded from RBT’s reserves), a higher insurance levy due to the Riccarton House value appreciation and inflation and higher remuneration costs of $16,000.

Non-financial performance

3.12 Reasons for the delay in implementing the Bush Enhancement Project are discussed in the Annex.

3.13 Predator control has led to numbers remaining in line with the prior year. This does not meet the target of an observable decrease in activity. This is probably a one-off anomaly as it has been met in prior years.

3.14 In the latter half of calendar year 2023, the RBT and Council staff commenced engagement on the Council’s 2030 net neutral emissions target.

Attachments Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	Riccarton Bush Trust - Half year report 2023/24	24/128622	110
b ⇩	Riccarton Bush Trust - Annual Report 2022/23	24/15984	124
c ⇩	Riccarton Bush Trust - Annual Report 2021/22	23/2125951	171

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

Annex

Riccarton Bush Trust – Financial Performance

RBT is a charitable trust, incorporated under an Act of Parliament in 1914. The Riccarton Bush Amendment Act 2012 requires that the RBT must provide a financial plan to the Council annually for approval. The Trust administers 7.8 hectares of native bush and Riccarton (historic) House.

The Trust supplements the Council’s funding with its own revenue generating initiatives such as rent and commissions from the on-site café (The Quarters) and Saturday market. The Trust has been particularly successful over the years in securing grants that support the historic nature of the House, but not so much on business as usual repairs and maintenance.

Performance against prior years

The following graph shows trends of revenues and costs over the past five years. The first year, 2018/19 was the last full financial year before COVID-19. With a relatively small operation and budget, RBT is very sensitive to reduced visitor numbers at the on-site café (which accounts for around 15% of its total revenue in rent and commissions) as well as the Saturday market, visitor and school tours and donations.

The graph shows that upward trajectory of costs and revenues as COVID-19 restrictions were removed late in the 2021/22 financial year.

The chart reflects relatively stable in and out-flows with the following key variances:

· total revenue in 2019/20 was enhanced with the securing of grants of $117,000 compared with an average of $46,000 over the other five years; all were for capital projects (not shown in the graph);

· sharp increase in the Council’s operating levy of $167,000 in 2022/23 largely to meet the costs of painting Riccarton House; and

· increase in operating revenue reflects the return of visitors to the café, independent tours and Saturday market following the lifting of COVID-19 restrictions. In 2022/23 there were 26,000 more visitors (+25%) to the grounds, house and bush than in the prior year.

Assets

Total assets mostly Riccarton House and land/bush have a value of $17 million in 2023, compared with $14 million in 2020/21 (the last year with COVID-19 restrictions). This has pushed up the annual (non-cash) depreciation charge from circa $170,000 to $304,000.

Capital re-investment in the assets (including both repairs and maintenance of the property and heritage investment) relative to the depreciation charge is shown in the chart below. It also shows the contribution to the capital expenditure programme made by the Council:

A graph of a graph with different colored bars

Description automatically generated with medium confidence

The RBT contributes to the capital re-investment from actively seeking grants and from its own income earning activities. Most grants received are to support the maintenance of the historic attributes of Riccarton House, rather than for repairs and maintenance.

Note that the capital funding provided by the Council in 2022/23 is greater than expenditure due to the slower progress being made on the Bush Enhancement project than expected (discussed below). There is a risk that the RBT will need to seek additional capital funding from the Council to, at a minimum ensure health and safety and maintain value in the historical site if the availability of third party grants continues to be constrained.

Bush Enhancement project

The Council’s capital grant to the Trust was $123,000 in 2022/23. This is part of the funding requirements for the almost $2.5 million Bush Enhancement Project. The project includes upgrade of the boardwalk and path system throughout the Bush which is old and poses a health and safety risk, as well as being inaccessible for many as a result of uneven surfaces due to wear and tear.

The RBT has expected to raise 50% of the funding for this project. However, its ability to raise the funding is at risk due to greater community demand for charitable funding. This is exacerbated by Rata Foundation’s advice to the Trust that the project needs to have mana whenua input/endorsement to be eligible for grant consideration.

The RBT considers it essential to work in partnership with Ngāi Tūāhuriri throughout the project. RBT engaged Matapopore (established and given delegation by Ngāi Tūāhuriri) to develop a cultural design strategy that informed the concept and design of the project. Matapopore is no longer operational and funders are now requiring that RBT show evidence that Ngāi Tūāhuriri Runanga endorses Matapopore's work. This has not been forthcoming from the Runanga for reasons that are not clear to the RBT.

The Trust has advised that it will not proceed with those parts of the project that are to integrate Ngāi Tūāhuriri narratives, values and association with the Bush through design, art, entrance experience and interpretation. It will however need to complete those parts of the project that are driven by health and safety requirements which includes upgrading the tracks and supporting infrastructure, developing areas for larger groups and providing interpretation to educate, engage and encourage participation.

Finance and Performance Committee

28 February 2024

13. ChristchurchNZ Holdings Ltd - Draft Letter of Expectations for 2024/25
Reference / Te Tohutoro:	23/1887909
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 The purpose of this report is for the Council to consider the draft Letter of Expectations (LOE) for ChristchurchNZ Holdings Ltd (CNZHL) for 2024/25.

1.2 The report has been written in line with the annual Council-controlled organisations' (CCOs') governance and accountability cycle - to provide the LOE in time for it to inform business planning and the draft Statement of Intent (SOI) in early 2024.

1.3 The LOE is an administrative tool that the Council, as a shareholder uses to influence the strategic direction of a CCO. How the expectations are operationalised is a matter for the CCO and its board. Under section 131(1) of the Companies Act 1993 the board has an obligation to act in the best interests of the company.

1.4 The draft LOE for CNZHL for 2024/25 is in Attachment A. It is intended to inform the company’s business planning which underpins its SOI, a draft of which is due to the Council on 1 March 2024.

1.5 The LOE sits alongside the Enduring Statement of Expectations (SOE) which was issued to all CCOs on 18 December 2023. The key difference is that the SOE is a stocktake of the Council’s governance expectations of all CCOs whereas the attached LOE is tailored to CNZHL’s specific circumstances.

1.6 The draft LOE for 2024/25 for CNZHL was workshopped on 30 January 2024. As requested by councillors, it has been amended to include a clarifying statement (shown in track changes in the draft letter) that the expectations do not reflect any changes to funding and deliverables that may be made in the Long Term Plan process and an expectation that CNZHL will look for opportunities to share services within the wider Council group.

1.7 The draft LOE has been socialised with CNZHL which has indicated that it is comfortable with the expectations.

1.8 The decisions in this report are of low significance in relation to the Christchurch City Council’s Significance and Engagement Policy. The level of significance was determined by estimating the extent to which the community may be impacted by the content of the draft LOE.

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Approves the draft Letter of Expectations for ChristchurchNZ Holdings Ltd for 2024/25.

3. Reason for Report Recommendations Ngā Take mō te Whakatau

3.1 To allow the Council as CNZHL’s shareholder to influence the CCO’s direction.

4. Alternative Options Considered Ētahi atu Kōwhiringa

4.1 The only alternative option is to not issue a LOE to CNZHL in which case the Council would need to communicate any expectations it may have as part of feedback on the draft SOI. This lacks transparency and is unlikely to provide enough time for CNZHL to address the expectations by 30 June when its final SOI is due.

5. Policy Framework Implications Ngā Hīraunga ā- Kaupapa here

Strategic AlignmentTe Rautaki Tīaroaro

5.1 LOEs are strongly aligned to the strategic objectives of the Council and to its Long Term Plan.

Policy Consistency Te Whai Kaupapa here

5.2 The decision is consistent with Council’s Plans and Policies – in particular a LOE is part of the governance and accountability framework for CCOs.

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 not specifically impact Mana Whenua, their culture and traditions.

5.4 The decision may have matters of interest to Mana Whenua but is unlikely to impact on our agreed partnership priorities with Ngā Papatipu Rūnanga. This is because the mana whenua section of the LOE is the same as it was in last year’s LOE. It was reviewed again for the current draft LOE by the Council’s Treaty Relationships Team which advised it continues to be an appropriate expression of expectations in relation to mana whenua.

Climate Change Impact Considerations Ngā Whai Whakaaro mā te Āhuarangi

5.5 The draft LOE is unlikely to contribute significantly to adaptation to the impacts of climate change or emissions’ reductions, as the expectations are governance-oriented not operational.

5.6 It contains climate change expectations which have been reviewed and endorsed by the Council’s Climate Resilience Team.

6. Resource Implications Ngā Hīraunga Rauemi

Capex/Opex Ngā Utu Whakahaere

6.1 Cost to Implement – there are no identifiable costs of implementation. CNZHL will need to manage any that may arise in the ordinary course of its business.

6.2 Funding Source - CNZHL may need to re-prioritise within its work programmes to meet any material additional costs arising in responding to the Council’s expectations.

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 There is no legal context, issue, or implication relevant to this decision. Note that the LOE is an administrative accountability and governance tool and is therefore non-mandatory.

8. Risk Management Implications Ngā Hīraunga Tūraru

8.1 The CNZHL board can raise issues of concern with the content of the LOE. However, Council staff have socialised the draft LOE with CNZHL and therefore material risks if any would probably have been raised at that point.

9. Next Steps Ngā Mahinga ā-muri

9.1 The LOE’s expectations will be considered fully by the CNZHL board in the ordinary course of business planning in the first quarter of the 2024 calendar year. They will inform the draft SOI due to the Council by 1 March 2024.

Attachments Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	ChristchurchNZ Holdings Ltd - draft Letter of Expectations 2024/25	24/175932	218

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

28 February 2024

14. Venues Ōtautahi - Draft Letter of Expectations 2024/25
Reference / Te Tohutoro:	23/1887986
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 The purpose of this report is for Council to consider the draft Letter of Expectations (LOE) to Venues Ōtautahi (VŌ) for 2024/25.

1.2 The report has been written in line with the annual Council-controlled organisations' (CCOs)' governance and accountability cycle.

1.3 The LOE is an administrative tool that the Council, as shareholder uses to influence the strategic direction of a CCO. The LOE provides direction at a governance level. How the expectations are operationalised is a matter for the CCO board. Under section 131(1) of the Companies Act 1993 the board has an obligation to act in the best interests of the company.

1.4 The draft LOE for VŌ for 2024/25 is at Attachment A. It is intended to inform the company’s business planning which underpins its SOI, a draft of which is due on 1 March 2024.

1.5 The LOE sits alongside the Enduring Statement of Expectations (SOE) issued by the Council in December 2023. The key difference is that the SOE is a general expression of the Council’s expectations of all CCOs whereas the LOE is tailored to VŌ’s specific circumstances.

1.6 The draft LOE for 2024/25 for VŌ was workshopped on 30 January 2024. It includes expectations that VŌ will engage with the Council on the proposed recipient of naming rights to Te Kaha, with explanation of how the bid met the selection criteria and that VŌ will look for opportunities to share services within the wider Council group.

1.7 The draft LOE for 2024/25 has been socialised with VŌ.

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Approves the draft Letter of Expectations for Venues Ōtautahi Ltd for 2024/25.

3. Reason for Report Recommendations Ngā Take mō te Whakatau

3.1 To allow the Council as VŌ’s shareholder to influence the CCO’s direction.

4. Alternative Options Considered Ētahi atu Kōwhiringa

4.1 The only alternative option is to not issue a LOE to VŌ in which case the Council would need to communicate any expectations it may have as part of feedback on the draft SOI. This would be a less efficient way of engaging with the company on the shareholder’s expectations.

5. Policy Framework Implications Ngā Hīraunga ā- Kaupapa here

Strategic AlignmentTe Rautaki Tīaroaro

5.1 LOEs are strongly aligned to the strategic objectives of the Council and to its Long Term Plan.

Policy Consistency Te Whai Kaupapa here

5.2 The decision is consistent with Council’s Plans and Policies – in particular a LOE is part of the governance and accountability framework for CCOs.

Impact on Mana Whenua Ngā Whai Take Mana Whenua

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 LOE contains mana whenua expectations that have been reviewed and endorsed by the Council’s Treaty Relationships Team as being appropriate.

Climate Change Impact Considerations Ngā Whai Whakaaro mā te Āhuarangi

5.6 The draft LOE is unlikely to contribute significantly to adaptation to the impacts of climate change or emissions reductions since they are governance rather than operational expectations.

5.7 It contains climate change expectations which have been reviewed and endorsed by the Council’s Climate Resilience Team in the Strategic Policy and Performance group.

6. Resource Implications Ngā Hīraunga Rauemi

Capex/Opex Ngā Utu Whakahaere

6.1 Cost to Implement – there are no identifiable costs of implementation.

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 There is no legal context, issue or implication relevant to this decision. Note that the LOE is an administrative accountability and governance tool and is therefore non-mandatory.

8. Risk Management Implications Ngā Hīraunga Tūraru

8.1 The VŌ board is able to raise issues of concern with the content of the LOE. However, Council staff have socialised the draft LOE with VŌ and therefore risks are likely to have been raised at that point.

9. Next Steps Ngā Mahinga ā-muri

9.1 The LOE’s expectations will be considered fully by the VŌ board in the ordinary course of business planning in the first half of the 2024 calendar year. They will inform the draft SOI due to the Council by 1 March 2024.

Attachments Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	Venues Otautahi - draft Letter of Expectations 2024/25	24/175999	226

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

28 February 2024

15. Christchurch City Holdings Ltd - Draft Letter of Expectations 2024/25
Reference / Te Tohutoro:	24/22803
Report of / Te Pou Matua:	Linda Gibb, Performance Advisor, Resources Group (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 seeks the Council's approval of the draft Letter of Expectations to Christchurch City Holdings Ltd (CCHL) for 2024/25.

1.2 The report has been written in line with the annual Council-controlled organisations' (CCOs) governance and accountability cycle, and follows a workshop on 30 January 2024.

1.3 The LOE is an administrative tool that the Council, as a shareholder uses to influence the strategic direction of a CCO, pursuant to section 64(2) of the Local Government Act 2002 as follows:

The purpose of a statement of intent is to —

a) state publicly the activities and intentions of the council-controlled organisation for the year and the objectives to which those activities will contribute; and

b) provide an opportunity for shareholders to influence the direction of the organisation; and

c) provide a basis for the accountability of the directors to their shareholders for the performance of the organisation.

1.4 How the expectations are operationalised is a matter for the CCO and its board. Under section 131(1) of the Companies Act 1993 the board has an obligation to act in the best interests of the company.

1.5 The draft LOE for CCHL for 2024/25 is at Attachment A. It is intended to inform the group’s business planning which underpins its SOIs, drafts of which are due to the Council on 1 March 2024.

1.6 The LOE sits alongside the Enduring Statement of Expectations (SOE) which was issued to all Council-controlled organisations on 18 December 2023. The key difference is that the SOE is a stocktake of the Council’s general governance expectations that change little from year to year and is applicable to all CCOs whereas the LOE is tailored to a specific CCO and includes current issues.

1.7 The draft LOE for 2024/25 for CCHL has been informally socialised with the company prior to a workshop between staff and councillors on 30 January 2024. CCHL has indicated that it is broadly comfortable with the expectations. It was presented to elected members at a workshop on 23 January 2024.

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Approves the draft Letter of Expectations for Christchurch City Holdings Ltd for 2024/25.

3. Reason for Report Recommendations Ngā Take mō te Whakatau

3.1 To allow the Council as CCHL’s shareholder to influence the group’s direction.

4. Alternative Options Considered Ētahi atu Kōwhiringa

4.1 The only alternative option is to not issue a LOE to CCHL in which case the Council would need to communicate any expectations it may have as part of feedback on the draft SOI. This lacks transparency and is unlikely to provide enough time for CCHL to address the expectations by 30 June when final SOIs are due.

5. Detail Te Whakamahuki

5.1 The key issues in the CCHL draft LOE are:

· implementing strategic review Option 2: Enhanced Status Quo with a view to lifting returns over time through stronger oversight of capital management and operational improvements;

· setting a dividend policy in consultation with the Council;

· consultation for any future Central Otago Airport project proposals; and

· deliver a workshop in early 2024/25 with progress on the group’s achieving the 2030 net carbon neutral (excluding methane) target.

6. Policy Framework Implications Ngā Hīraunga ā- Kaupapa here

Strategic AlignmentTe Rautaki Tīaroaro

6.1 LOEs are strongly aligned to the strategic objectives of the Council and to its Long Term Plan.

Policy Consistency Te Whai Kaupapa here

6.2 The decision is consistent with Council’s Plans and Policies – in particular LOEs are part of the governance and accountability framework for CCOs.

Impact on Mana Whenua Ngā Whai Take Mana Whenua

6.3 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 not specifically impact Mana Whenua, their culture and traditions.

6.4 The decision may have matters of interest to Mana Whenua but is unlikely to impact on our agreed partnership priorities with Ngā Papatipu Rūnanga. This is because the mana whenua section of the LOE is the same as it was in last year’s LOE. It was reviewed again for the current draft LOE by the Council’s Treaty Relationships Team which advised it continues to be an appropriate expression of expectations in relation to mana whenua.

Climate Change Impact Considerations Ngā Whai Whakaaro mā te Āhuarangi

6.5 The proposals in this report are unlikely to contribute significantly to adaptation to the impacts of climate change or emissions reductions. The LOE’s expectations are of a governance and accountability nature, not operational.

7. Resource Implications Ngā Hīraunga Rauemi

Capex/Opex Ngā Utu Whakahaere

7.1 Cost to Implement – there are no identifiable costs of implementation.

7.2 Funding Source – should there be any costs arising from the content of the LOE, they would need to be absorbed by within the CCHL group.

8. Legal Implications Ngā Hīraunga ā-Ture

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

8.1 Local Government Act 2002.

Other Legal Implications Ētahi atu Hīraunga-ā-Ture

8.2 There is no legal context, issue, or implication relevant to this decision. Note that the LOE is an administrative accountability and governance tool and is therefore non-mandatory.

9. Risk Management Implications Ngā Hīraunga Tūraru

9.1 The CCHL board can raise issues of concern with the content of the LOE. However, Council staff have socialised the draft LOE with CCHL and therefore material risks if any would probably have been raised at that point.

10. Next Steps Ngā Mahinga ā-muri

10.1 The LOE’s expectations will be considered fully by the CCHL board in the ordinary course of business planning in the first half of the 2024 calendar year. They will inform the draft SOI due to the Council by 1 March 2024.

Attachments Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	Christchurch City Holdings Ltd - Draft Letter of Expectations 2024/25	24/247837	235

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
17.	Public Excluded Finance and Performance Committee Minutes - 31 January 2024			Refer to the previous public excluded reason in the agendas for these meetings.
18.	Riccarton Bush Trust - Appointment of Chair of the Trust Board	s7(2)(a)	Protection of Privacy of Natural Persons	To protect the candidate's reputation in the event the Council declines the appointment.	As soon as the Council's decision has been made and the candidate is notified of it.
19.	Visibility of Capital Project Budget Changes: January 2024	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