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.

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Finance and Performance Committee

Open Minutes

Date: Wednesday 29 May 2024

Time: 9.32 am

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

Present

Chairperson

Members

Councillor Sam MacDonald

Mayor Phil Mauger

Deputy Mayor Pauline Cotter

Councillor Kelly Barber

Councillor Celeste Donovan – via audio/visual link

Councillor Tyrone Fields

Councillor James Gough

Councillor Tyla Harrison-Hunt

Councillor Victoria Henstock

Councillor Yani Johanson

Councillor Aaron Keown – via audio/visual link

Councillor Jake McLellan

Councillor Andrei Moore

Councillor Mark Peters

Councillor Tim Scandrett

Councillor Sara Templeton

Principal Advisor

Bede Carran

General Manager Finance, Risk & Performance / 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 the Mayor, Deputy Mayor and all Councillors

The agenda was dealt with in the following order.

1. Apologies Ngā Whakapāha

Part C

Committee Resolved FPCO/2024/00030

That the apologies received from The Mayor and Councillors Donovan and Gough for lateness, and from Councillor Coker for absence, be accepted.

Deputy Mayor/Councillor Moore Carried

2. Declarations of Interest Ngā Whakapuaki Aronga

Part B

Councillors Henstock and McLellan declared an interest in Item 10 – ChristchurchNZ Holdings Ltd – Quarter 3 2023/24 Performance Report.

Councillor Fields declared an interest in Item 11 – Council-controlled organisations reports –Rod Donald Banks Peninsula Trust Annual Report 2022/23.

Deputy Mayor Cotter and Councillor Peters declared an interest in Item 11 – Council-controlled organisations reports - Central Plains Water Trust Draft Statement of Intent 2024/25.

Councillor Fields declared an interest in Public Excluded Item 16 in relation to the Rod Donald Trust.

Councillors MacDonald and Templeton declared an interest in relation to Public Excluded Item 17 Three Waters Maintenance Contract.

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

Part C

Committee Resolved FPCO/2024/00031

That the minutes of the Finance and Performance Committee meeting held on Wednesday, 17 April 2024 be confirmed.

Councillor Fields/Councillor Peters Carried

4. Public Forum Te Huinga Whānui

Part B

There were no public forum presentations.

5. Deputations by Appointment Ngā Huinga Whakaritenga

Part B

There were no deputations by appointment.

6. Presentation of Petitions Ngā Pākikitanga

Part B

There was no presentation of petitions.

The Mayor joined the meeting at 9.50am during consideration of Item 7.

7. Key Organisational Performance Results - April 2024

Committee Resolved FPCO/2024/00032

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1. Receives the information in the Key Organisational Performance Results - April 2024 Report.

Councillor Peters/Councillor MacDonald Carried

Councillor Templeton joined the meeting at 9.54am during consideration of Item 8.

Councillor Harrison-Hunt joined the meeting in person at 9.54am during consideration of Item 8.

8. Financial Performance Report - April 2024

Committee Resolved FPCO/2024/00033

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1. Receives the information in the Financial Performance Report - April 2024 Report.

Mayor/Deputy Mayor Carried

Councillor Fields left the meeting at 10.12am and returned at 10.14am during consideration of Item 9.

9. Capital Programme Performance Report April 2024

Committee Resolved FPCO/2024/00034

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1. Receives the information in the Capital Programme Performance Report April 2024 Report.

Deputy Mayor/Councillor Scandrett Carried

Deputy Mayor Cotter left the meeting at 10.28am and returned at 10.31am during consideration of Item 10.

Councillor Gough joined the meeting at 10.45am during consideration of Item 10.

Councillors Henstock and McLellan declared an interest in Item 10 – ChristchurchNZ Holdings Ltd – Quarter 3 2023/24 Performance Report and did not participate in discussion or voting.

10. ChristchurchNZ Holdings Ltd - Quarter 3 2023/24 Performance Report

Committee Resolved FPCO/2024/00035

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1. Receives ChristchurchNZ Holdings Ltd’s Quarter 3 2023/24 Performance Report.

Mayor/Councillor Templeton Carried

Attachments

a ChristchurchNZ Holdings Ltd - Presentation to Council

Councillor Donovon joined the meeting via audio/visual link at 10.50am during consideration of Item 11.

Councillor Fields declared an interest in Item 11 – Council-controlled organisations reports – Rod Donald Banks Peninsula Trust Annual Report 2022/23, and did not participate in discussion or voting.

Deputy Mayor Cotter and Councillor Peters declared an interest in Item 11 – Council-controlled organisations reports – Central Plains Water Trust Draft Statement of Intent 2024/25, and did not participate in discussion or voting.

11. Council-controlled organisations reports - Rod Donald Banks Peninsula Trust Annual Report 2022/23, Central Plains Water Trust Draft Statement of Intent 2024/25 and Civic Financial Services Final Statement of Intent 2024

Committee Resolved FPCO/2024/00036

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1. Receives the following Council-controlled organisation reports:

a) Rod Donald Banks Peninsula Trust Annual Report 2022/23;

b) Central Plains Water Trust draft Statement of Intent 2024/25; and

c) Civic Financial Services Statement of Intent 2024.

Councillor MacDonald/Mayor Carried

Councillor Henstock left the meeting at 10.48am and returned at 11.01am during consideration of Item 12.

Councillor Moore left the meeting at 10.51am and returned at 10.53am during consideration of Item 12.

12. CWTP Insurance Update

Committee Resolved FPCO/2024/00037

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1. Receives the information in the CWTP Insurance Update Report.

Mayor/Councillor Johanson Carried

Attachments

a CWTP Insurance Update - Presentation to Council

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

Committee Resolved FPCO/2024/00038

Part C

That at 11.05am the resolution to exclude the public set out on pages 168 to 169 of the agenda be adopted.

Mayor/Councillor Scandrett Carried

The public were re-admitted to the meeting at 12.01pm.

Karakia Whakamutunga: Given by the Mayor, Deputy Mayor and all Councillors

Meeting concluded at 12.02pm.

CONFIRMED THIS 26TH DAY OF JUNE 2024

Councillor Sam MacDonald

Chairperson

7. Key Organisational Performance Results - May 2024
Reference Te Tohutoro:	24/874051
Responsible Officer(s) Te Pou Matua:	Peter Ryan, Head of Corporate Planning & Performance
Accountable ELT Member Pouwhakarae:	Bede Carran, General Manager Finance, Risk & Performance / Chief Financial Officer

1. Purpose and Origin of the Report Te Pūtake Pūrongo

1.1 To provide Council with an overview of key service, project, and budget performance in the delivery of the 2021-31 Long Term Plan (and Annual Plan 2023/24).

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Receives the information in the Key Organisational Performance Results - May 2024 Report.

3. Background/Context Te Horopaki

3.1 This is a regular report focused on a suite of the ‘vital few’ organisational performance targets, and forms a key component of the Performance Framework and its reporting.

4. Considerations Ngā Whai Whakaaro

4.1 The key organisational performance targets include:

· Service delivery (levels of service)

· Capital projects (both planning and delivery)

· Finance (opex and capex)

4.2 A screenshot of a document

Description automatically generated Organisational performance forecasts, as at 31 May 2024, for year three of the LTP 2021-31 (financial year to 30 June 2024).

4.3 Community level of service delivery is forecast at 80.8%, against Executive Leadership Team’s (ELT) target of 85%, shows decline from April, forecasting further below the YE post-audit result for 2022/23 (81.9%). Given reporting trends in previous years it is likely that Community LOS performance will end below 80% for year-end.

4.4 Key project milestone delivery is forecast at 87%, a decline (9%) from April but remains forecast to meet the ELT target of 85%.

4.5 Non-Key project delivery remains stable with no change from April, forecast at 82% remaining just below ELT’s target of 85%.

4.6 Capital planning performance results show one target met, the other not met.

· Funding programme budgets allocated for FY2025 by 1^st March 2024 remains reported at 93% – ELTs target of 90% has been met.

· Budget drawdowns for FY2026 and 2027 by 1^st May 2024 is reported at 86%, an improvement of 4% from April. This means the ELTs target of 90% has not been met for the year.

4.7 For detailed project-specific information refer to the Capital Programme Performance Report.

4.8 Operational budget is forecasting a surplus of $12.6m (after carry-forwards). For detailed information refer to the Financial Performance Report.

4.9 Delivery of the overall approved capital programme budget is now at -2.2% (rounded figure), still on track against a target of between 0% and -10%. More information is available in the Capital Programme Performance Report.

5. Service Delivery

A graph with numbers and a line

Description automatically generated ELT Goal: Deliver 85% Community Levels of Service to target.

5.1 Community levels of service (LOS) is forecast at 80.8% delivery against the performance target of 85%, a small decline of 0.5% (nett one LOS) from April.

5.2 Service delivery forecasts for activities range from 38.9% to 100% achievement. In summary, key forecast Levels of Service (LOS) exceptions for the May period include:

5.2.1 Transport & Waste Management activities have eleven exceptions related to road and footpath condition, cycleways, including resident satisfaction, deaths or serious injury crashes, Christchurch being a walk friendly city, transport mode-share.

5.2.2 Water Supply and Wastewater activities combined have nine exceptions related to water supply compliance, wastewater and water supply reliability, responsiveness to faults and call outs, including resident satisfaction, medium and high hazard commercial connections, and water loss and average water consumption.

5.2.3 Building Consenting activity has four exceptions related to building consents and code of compliance certificates processing timeframes including resident satisfaction and Building Warrant of Fitness Audits.

5.2.4 Planning & Consents activity has two exceptions related to notified and non-notified resource management applications processed within statutory timeframes.

5.2.5 Regulatory Compliance & Licensing activity has three exceptions; investigations of dangerous building reports, food control plan verification visits and response to complaints in relation to excessive noise.

5.2.6 Citizens and Community activities have six exceptions related to Citizen & Customer Services (2); Parks (3), Community Support & Partnerships (1), which mostly relate to the latest annual Resident Satisfaction Survey results.

5.2.7 Public Information and Participation activity has one exception related to providing advice and support, also related to the latest annual Resident Satisfaction Survey results.

5.2.8 Corporate Planning & Performance service has two exceptions related to the implementation of the Long-term Plan programme & maintaining the integrity of Performance Framework.

5.2.9 Economic Development has two new exceptions relating to building innovation and entrepreneurial strength and developing Christchurch as an attractive destination.

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

5.4 In support of these exceptions, and in response to councillor questions about customer service request information related to LOS exceptions, reporting to Finance and Performance Committee now includes the improved summary “Ticket Report” information presently being rolled out to all Community Boards (Attachment B). This summary report is supported with more detailed local information provided to Community Boards, including a map-based view which is available to Councillors and Community Board members via their Community Board Advisor (due to privacy reasons).

5.5 A screenshot of a computer

Description automatically generated 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.

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.

5.6 Key project milestone delivery is forecast at 87% (20 out of 23 projects), a decline of 9% since April. This forecast now meets ELTs target of 85%, with three projects currently forecast to not meet delivery milestones.

5.7 A screenshot of a graph

Description automatically generated Non-Key project milestone delivery is forecast at 82%, no change from April, remaining below ELT’s target of 85%.

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

5.9 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 preceding 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 2023 report which relates to late FY23 financial adjustments on Te Kaha, and a budget increase within the Parks programme.

5.10 The view below now also includes future years planned expenditure for 2024/25, 2025/26 and 2026/27, as per the adopted draft Long-term Plan 2024-34 capital programme.

5.11 The extended black line is the full planned delivery budget including spend for Te Kaha.

5.12 The extended blue line shows the full Council planned delivery budget (excluding spend for Te Kaha, and before any confirmed carry-forwards).

5.13 The extended blue line (Council planned delivery budget, excluding spend for Te Kaha) shows a considerable lift in Council planned delivery:

· from a consistent $488m to $496m planned budget for the three years 2021-24,

· to between $566m to $664m planned budget for the future three years (2024-27).

5.14 It is accepted these future planned delivery budgets for capital meet Council’s expectations as being both deliverable and affordable.

5.15 A graph of a business

Description automatically generated with medium confidence Looking at current forecast performance for 2023/24 (year three of the LTP 2021) the revised total programme budget set for CCC to deliver (as of May) is $481m (blue line). To the end May 2024 the total forecast capital delivery has shown steady improvement, forecasting at $470m (green line), which equates to 97.8% forecast delivery.

5.16 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.

5.17 Council delivery for 2022/23 and forecast delivery for 2023/24 show a distinctive lift from that seen the previous four years. This higher level of delivery (approx. $450m per annum) has informed the development of the draft LTP 2024-34. However, delivery currently programmed into the draft LTP for 2024/25 to 2026/27 shows a very significant increase over historical delivery patterns.

5.18 The ELT performance goal for capital delivery is based on all delivery CCC is accountable for (excluding Te Kaha), regardless of funding source.

5.19 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.

5.20 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.

5.21 Capital planning performance shows funding programme budgets allocated for FY2025 by 1st March 2024 remains reported at 93% – ELTs target of 90% has been met.

5.22 Budget drawdowns for FY2026 and 2027 by 1st May 2024 is reported at 86%, an improvement of 4% from April. This means the ELTs target of 90% has not been met for the year.

6. Finance

6.1 The organisation reports a forecast operational surplus of $12.6m (after carry-forwards). For underpinning information refer to the Financial Performance Report.

6.2 Overall capital programme budget expenditure forecast is at -2.2% (rounded). This remains on track to meet ELTs target (between 0% to -10%). More detailed information is available in the Capital Programme Performance Report.

Attachments Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	LOS Exceptions Commentary	24/1017025	22
b ⇩	Community Board Reports May 2024 - summary Ticket Report	24/1009698	33

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

Document Name – Location / File Link

Not applicable

Signatories Ngā Kaiwaitohu

Authors

Amber Tait - Performance Analyst

Boyd Kedzlie - Senior Corporate Planning & Performance Analyst

Approved By

Peter Ryan - Head of Corporate Planning & Performance

Bede Carran - General Manager Finance, Risk & Performance / Chief Financial Officer

8. Financial Performance Report - May 2024
Reference Te Tohutoro:	24/984221
Responsible Officer(s) Te Pou Matua:	Russell Holden, Head of Finance
Accountable ELT Member Pouwhakarae:	Bede Carran, General Manager Finance, Risk & Performance / Chief Financial Officer

1. Purpose and Origin of the Report Te Pūtake Pūrongo

1.1 The purpose of this report is for the Finance and Performance Committee to be updated on Council's financial performance to 31 May 2024 including the current year forecast, and to receive current treasury compliance 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. Receives the information in the Financial Performance Report - May 2024 Report.

3. Brief Summary

3.1 The year-to-date operational surplus of $34.5m is $21.0m greater than budgeted. This is primarily due to; reduced personnel costs - due to staff vacancies, improved waste management revenues, decreased landfill costs, increased rates penalties, higher subvention receipts and improved recreation and sports revenues due to higher participation. A surplus of $12.6 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 $18.3 million. This comprises a forecast under spend of $10.6 million on the core/external funded programme and a forecast under spend of $7.7 million on Te Kaha.

3.3 All treasury risk positions are within policy limits.

4. Operating Forecast

4.1 The current forecast surplus, before carry-forwards, is $19.9 million, arising from; rates income, pool revenues, Water Reform additional funding, savings in personnel costs, improved waste management operations, and increased subvention receipts. These are partially offset by reductions in Digital staff capitalisation, higher net interest cost and additional three waters operational and maintenance costs.

4.2 The current significant carry-forward requests, being signalled, that reduce the forecast surplus from $19.9 million to $12.6 million are:

4.2.1 Water Reform $2.8m - Request to carry forward these funds as 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 funds must be returned to the Government per the original agreement,

4.2.2 Port Hills red zone funding $1.0m – remaining unspent budget,

4.2.3 Closed Landfill Aftercare costs $0.75m –unspent waste management landfill aftercare budget,

4.2.4 EQ repair programme $0.88m –remaining EQ repair programme budgets for the Pages Road demolition, Yaldhurst Memorial Hall repair, Opawa Childrens Library and Upper Riccarton War Memorial Library,

4.2.5 Christchurch Red Zones $0.26m - prioritise the spending of Better Off funding as opposed to spending the carry forward,

4.2.6 Edgeware Pool grant $3m - to raise sufficient funds to demonstrate the capability to build and operate the pool (this will be funded from borrowings and so it is not included in the forecast surplus noted in paragraph 4.2 above),

4.2.7 Metro Community Partnership fund $0.8m - will be phased over next 24 months with annual payment made at differing times depending on when the contract started,

4.2.8 Orion compliance project $ 0.37m - Request to carry forward the remaining budget for this project as it will not be completed until early next FY to meet our compliance and expectation from Orion.

4.3 The $12.6 million forecast year end surplus, after carry-forwards, is an improvement of $1.6 million from that reported last month. The material improvement is largely due to improved organics processing costs and improved Rec & Sports revenues, partially offset by increased Three Waters and Digital costs,

4.4 During recent LTP workshops, Councillor direction in relation to the additional $7.4 million of subvention receipts received this year, (which are part of the forecast surplus), is to utilise these to reduce borrowing requirements. This has a positive impact on future debt servicing costs.

5. Operational Expenditure and Revenue

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

5.2 Operational revenue exceeds expenditure as it includes rates revenue for capital renewals and debt repayment. This ‘capital’ revenue is referred to below as ‘Funds not available for Opex’ and is removed to show the year to date and forecast operational 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	(958.0)	(939.4)	18.6	(1,014.7)	(994.1)	20.6	(0.4)	20.2
Expenditure	683.8	687.7	3.9	757.9	760.7	2.8	10.5	(7.7)
Funds not available for Opex	239.7	238.2	(1.5)	236.9	233.4	(3.5)	(3.6)	0.1
Operating (Surplus)/Deficit	(34.5)	(13.5)	21.0	(19.9)	-	19.9	7.3	12.6

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

5.4 Revenues are $18.6 million ahead of budget year to date and are forecast to be $20.6 million higher at year end. Key drivers of actual and forecast variances to budget include:

Variance	YTD	Year end forecast (after c/f)
Subvention receipts from Council controlled organisations	7.4m	7.4m
Waste operations (primarily Burwood landfill & Ecocentral)	4.9m	5.6m
Consenting revenues (reducing consents backlogs)	2.0m	1.7m
Recreation & Sports Centres increased participation	2.9m	2.4m
Rating base growth	1.2m	1.2m
Rates penalties	1.3m	1.9m
Rates valuation objections (prior year)	(0.3m)	(0.3m)
Transwaste dividends	(0.5m)	(0.6m)
Transport revenues (NZTA Opex Subsidy)	(2.4m)	-
Total	16.5	19.3

5.5 Expenditure is $3.9 million lower than budget year to date but forecast to be $7.7 million over budget at year end after carry forwards. The reason for the forecast deterioration in the last quarter is that some operational expenditure such as Plan Change 14 (PC 14) and operational expenditure funded from Better Off Funding is more heavily weighted towards the end of the financial year than was budgeted. The year-to-date variance is primarily driven by lower personnel costs largely due to higher than expected staff vacancies.

Key drivers of actual and forecast variances to budget include:

Variance	YTD	Forecast (after c/f)
Staff Costs (net saving from vacancies unfilled for longer than expected)	7.1m	6.3m
Grant payments (delays in projects and budget phasing variances)	0.8m	0.2m
Transport operating and maintenance costs	0.8m	0.4m
Professional advice expenditure	1.6m	(2.1m)
Waste operating costs (lower recycling processing fees, lower residual waste disposal fees and lower organics processing costs)	2.1m	0.0m
District Planning professional advice costs accelerating & additional costs incurred clearing consent backlog (partially offset by additional revenues)	(0.6m)	(2.3m)
Three Waters maintenance & operating costs (additional reactive maintenance)	(5.5m)	(3.2m)
Digital capitalisation budget allocation (note 5.6)	(3.6m)	(3.6m)
Digital P/O receipting delays resulting in FY-23 costs in FY-24, and increases in software licence renewal costs greater than budget.	(2.9m)	(3.2m)
Total	(0.2m)	(7.5m)

5.6 In the 23/24 Annual Plan preparation, a change in the budgeting process had an unintended consequence in respect of Digital costs. Depreciation charges for Digital should have been treated as operational costs (opex) which are funded by rates, what occurred was that they were incorrectly capitalised in the budget and therefore not rated to be recovered. This has been corrected in the LTP 2024-34.

5.7 Funds not available for Opex; items included in this category contributing to the variance are Housing and Dogs opex (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	373.7	413.1	39.4		428.6	454.1	25.5	12.1	13.4
External Funded Programme	40.7	24.3	(16.4)		44.3	26.5	(17.8)	(15.0)	(2.8)
Less unidentified Carry Forwards	0.0	0.0	0.0		(2.9)	0.0	2.9	13.3	(10.4)
Core/External Funded Programme	414.4	437.4	23.0		470.0	480.6	10.6	10.4	0.2
Te Kaha	180.7	192.0	11.3		216.5	224.2	7.7	7.7	-
Total Capital Programme	592.2	629.4	34.3	6	686.5	704.8	18.3	18.1	0.2
Revenues and Funding	(292.2)	(275.3)	16.7		(307.3)	(317.1)	(9.9)	(15.2)	5.3
Borrowing required	290.3	340.6	50.3		394.8	403.4	8.6	2.9	5.7

Capital Expenditure

6.2 Gross capital expenditure of $592.2 million has been incurred against a year-to-date budget of $629.4 million.

6.3 Overall, total capital expenditure of $686.5 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 $704.8 million. Of the $18.3 million variance, the majority is forecast to be requested 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 $16.7 million higher than budget year to date, due to Council having received higher development contribution revenues ($33M compared with a $21.2M budgeted) and higher proceeds from land sales ($6.9M) offset by lower NZTA capital subsidies.

6.6 Capital revenues and funding are forecast to be $9.9 million lower than budget, before carry-forwards which comprise delays in NZTA capital subsidies, which are yet to be calculated. The revenue not recovered in the current financial year is expected to be received in FY-25. The lower revenue is partially offset by higher development contribution receipts.

7. Treasury

Policy Compliance

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

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

Borrowing & Advances to Related Parties

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

7.3 Advances are primarily to Christchurch City Holdings Ltd (currently $681.2 million, which has increased by $24 million year to date) and to the Local Government Funding Agency (LGFA) an increase of $8.6 million (a term of borrowing is that Council leaves 2.5% of its total borrowings with LGFA).

7.4 Net Debt (excluding cash balances) is estimated to increase by $306.4 million over the full financial year, driven by capital expenditure (particularly Te Kaha).

Funding & Interest Rates

7.5 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

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

Average for 2022/23 was 4.9%; 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

Signatories Ngā Kaiwaitohu

Authors

Bruce Moher - Manager Corporate Reporting

Mitchell Shaw - Reporting Accountant

Steve Ballard - Group Treasurer

Karthik MG - Reporting Accountant

Approved By

Russell Holden - Head of Finance

Bede Carran - General Manager Finance, Risk & Performance / Chief Financial Officer

10. Council-controlled organisations - Sundry Reports
Reference Te Tohutoro:	24/847967
Responsible Officer(s) Te Pou Matua:	Linda Gibb, Performance Advisor, Finance
Accountable ELT Member Pouwhakarae:	Bede Carran, General Manager Finance, Risk & Performance / Chief Financial Officer

1. Purpose and Origin of the Report Te Pūtake Pūrongo

1.1 This report presents the following documents:

· Quarter 3 2023/24 Performance Report for Te Kaha Project Development Ltd;

· Final Statements of Intent (SOIs) for 2024/25 for the following Council-controlled organisations (CCOs) - Te Kaha Project Development Ltd, Civic Building Ltd, Riccarton Bush Trust and Rod Donald Banks Peninsula Trust; and

· Annual Report for the financial year ending 31 December 2023 for Civic Financial Services Ltd and an update on the Council’s RiskPool liability.

1.2 This report has been written following receiving the documents in May 2024.

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Receives the Quarter 3 2023/24 Performance Report for Te Kaha Project Development Ltd;

2. Receives the final Statements of Intent 2024/25 for Council-controlled organisations:

· Civic Building Ltd;

· Te Kaha Project Development Ltd;

· Riccarton Bush Trust;

· Rod Donald Banks Peninsula Trust; and

3. Receives the Annual Report 2023 for Civic Financial Services Ltd.

3. Background/Context Te Horopaki

3.1 Quarterly reports - section 66 of the Local Government Act 2002 (LGA) requires that where a Council shareholder has requested a quarterly report, it must be delivered to shareholders within two months after the end of the quarter and must include the information required by the Statement of Intent. Te Kaha Project Development Ltd’s Quarter 3 performance report was received on 31 May 2024 which meets the LGA requirements (refer Attachment A).

3.2 Statements of Intent - schedule 8, part 1 of the LGA provides that a CCO board must consider comments on the draft SOI that are made by shareholders on or before 1 May (clause 2) and that the board must deliver the completed SOI to the shareholders before the commencement of the financial year to which it relates (clause 3).

3.3 The final SOIs for Civic Building Ltd, Te Kaha Project Development Ltd, Riccarton Bush Trust and Rod Donald Banks Peninsula Trust were received before the due date of 30 June, refer Attachments A-D to this report.

3.4 The final SOIs for ChristchurchNZ Holdings Ltd, Christchurch City Holdings Ltd, Venues Ōtautahi and Transwaste have not yet been received. The due date for them to be provided is 30 June. They will be reported to the Finance and Performance Committee’s 24 July meeting.

3.5 Annual Report – Civic Financial Services’ (Civic) balance date is 31 December. The Annual Report was received on 29 May 2024 from Civic (refer Attachment F).

Te Kaha Project Delivery Quarter 3 Performance Report

3.6 Te Kaha Project Delivery Ltd is the governance body tasked with commissioning the design and construction of Te Kaha. The responsibility and accountabilities for the final design and construction of Te Kaha are held with the Council’s Vertical Capital Delivery Team which reports to the Council monthly.

Financial targets

Actual

$000

SOI target

$000

Variance

$000

Last year

$000

Variance

S000

Revenue / Expenses

213

248

-35

151

+62

3.7 The variances against target and the same 9 month period last year reflect the timing of directors’ fees being paid. Final outturn for the year to 30 June 2024 is expected to be in line with the SOI targets.

3.8 Note that Te Kaha’s Quarter 3 report records the full year budget at $367,170. This is the internal budget, not the SOI target. As such, it includes a carry forward of directors’ fees that were due to be paid in the last financial year but were carried forward.

3.9 Non-financial performance targets have been met or are in progress to be met by financial year end, or are ongoing.

Final Statements of Intent

3.10 The final SOIs for the CCOs will be published on the company/Trust website as well as on the Council’s website, in accordance with section 64(9) of the LGA.

3.11 There were no shareholder comments made on any of the four draft SOIs. However the Riccarton Bush Trust and Rod Donald Banks Peninsula Trust have both made changes in the final SOI, discussed below.

3.12 The draft SOIs for Civic Building Ltd and Te Kaha Project Delivery Ltd have been finalised with no changes.

Riccarton Bush Trust

3.13 The final SOI addresses two matters that Council staff have been engaging with the Trust on (and which was advised to the Finance and Performance Committee meeting on 17 April when the draft SOI was considered), as follows:

· reflect how the Trust’s objectives align to the Council’s strategic framework and community outcomes set out in the draft LTP; and

· reframe the performance target for Stage 1 of the Bush Enhancement Project from “commencing stage 1…” to an outcome-related target. This has been reframed into three measures – (i) the tender process of Stage 1 is completed; (ii) the ‘Buy a Board’ campaign has been successful and (iii) plans completed for the fire and irrigation systems.

3.14 In addition, the Trust has updated the interim target of its goal to ‘commit to meeting the goal of becoming net carbon neutral by 2030’. Its draft SOI proposed the measure of “work with Council staff to identify what is required to enable this outcome”. The final SOI reflects progress and now provides “development of a plan with clear targets for reducing carbon in the Trust’s operations for implementation by year end”.

Rod Donald Banks Peninsula Trust

3.15 The following table shows the draft and final financial forecasts for each of the three SOI years:

Net profit	2024/25 $000	2025/26 $000	2026/27 $000
Final SOI	(355)	(801)	537
Draft SOI	(331)	(777)	561
Change	-24	-24	-24

3.16 Net profit forecasts have reduced in each SOI year by around $24,000 from two factors:

· inclusion of non-cash depreciation of, on average $8,000 in each year which had been omitted from the draft SOI; and

· audit fees are likely to be higher than the Trust provided for in its draft SOI. Over the past few months the Trust has been engaging with AuditNZ to test the reasonableness of significant increases in its audit fees in the past two years and expectations of future fee levels. In 2022, the Trust’s audit fees were around $10,000, rising to $15,000 in 2022 and $25,000 in 2023. AuditNZ has advised the fees in 2024 will be $27,000.

Council staff note that this level of audit fees was not anticipated when the Trust presented its case for, and was granted Council operating funding of $100,000 per annum in the 2021-31 LTP. As a result, the Trust will have less discretionary income available to meet its strategic goals.

Annual Report 2023 - Civic Financial Services

3.17 The Council has a 12.6% ownership stake in Civic. There are 73 other local authority shareholders.

3.18 Civic’s main business is the administration of superannuation schemes for local government employees of which investment funds total around $0.56 billion. These funds are managed by private sector investment specialists. Civic is also running off old insurance schemes that are no longer viable.

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

3.20 Civic’s performance for the year against its SOI forecasts and the prior year is shown in the following table:

	Actual 2023 $000	SOI target 2023 $000	Prior year 2022 $000
Total revenue	3,533	2,577	3,171
Total Expenditure	3,094	2,430	3,029
Surplus before tax	439	147	142
Superannuation funds under management	559,000	Not projected	496,000

3.21 The increased profit over both SOI targets and the prior year of just under $300,000 reflects higher interest on loans made to the insurance schemes that Civic is administering, of $348,000. The loans were paid off in their entirety as at 31 December following a call on Riskpool members in late 2023.

3.22 Civic recently advised that it would further reduce administration fees for members of its superannuation products. In 2020 fees were 0.5% and with the 2024 reduction they will be 0.33%. The fee reductions are funded by returns that would otherwise be distributed to shareholders (as opposed to offsetting cost savings).

Non-financial performance targets

3.23 The SOI records two performance targets as follows:

· to provide superannuation services to at least 90% of local authorities; and

· to continue to be an efficient and effective administration manager for LAPP, Riskpool, CLP and CPP.

3.24 Civic does not report its performance against the SOI non-financial targets in the Annual Report. If it was a CCO it would be required to report against the targets (clause 67(2)(b) of the LGA – the annual report must include the information required by the SOI).

3.25 Staff consider the most important measure of success is performance against the market. This matter has been raised with Civic previously but it has neither engaged with the Council on the request nor included a benchmarking measure.

Attachments Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	Te Kaha Project Delivery Ltd - Quarter 3 2023/24 Performance Report	24/1056599	85
b ⇩	Civic Building Ltd - Final Statement of Intent 2024/25	24/692571	92
c ⇩	Te Kaha Project Delivery Ltd - Final Statement of Intent 2024/25	24/1045647	104
d ⇩	Riccarton Bush Trust - Final Statement of Intent 2024/25	24/1056251	133
e ⇩	Rod Donald Banks Peninsula Trust - Final Statement of Intent 2024/25	24/1056315	149
f ⇩	Civic Financial Services - Annual Report 2023	24/1056646	172

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

Document Name – Location / File Link

Not applicable

Signatories Ngā Kaiwaitohu

Author	Linda Gibb - Performance Monitoring Advisor CCO
Approved By	Bede Carran - General Manager Finance, Risk & Performance / Chief Financial Officer

11. Venues Ōtautahi - Quarter 3 2024/25 Performance Report
Reference Te Tohutoro:	24/610398
Responsible Officer(s) Te Pou Matua:	Linda Gibb, Performance Advisor, Finance Group
Accountable ELT Member Pouwhakarae:	Bede Carran, General Manager Finance, Risk & Performance / Chief Financial Officer

1. Purpose and Origin of the Report Te Pūtake Pūrongo

1.1 The purpose of this report is to present Venues Ōtautahi’s (VŌ’s) performance report for the year to date to 31 March 2024, Quarter 3.

1.2 This report has been written as a result of receiving VŌ’s Quarter 3 performance report on 29 May 2024 (refer Attachment A).

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Receives Venues Ōtautahi’s Quarter 3 2023/24 Performance Report.

3. Background/Context Te Horopaki

3.1 VŌ’s primary activities are the attraction, planning and delivery of events and management of assets at the Council-owned Town Hall and Wolfbrook Arena and at managed venues – Air Force Museum, Hagley Oval Pavilion and Apollo Projects Stadium. It operates commercially but relies on Council funding support to assist it to meet the significant fixed costs associated with asset ownership and management. In 2023/24 Council’s operating grant to VO is $3.25 million (note this includes $0.2 million to service remaining historical debt). For completeness, it is noted that VO also receives a subvention payment of $2.785 million and a capital grant of $2.5 million for specific purposes.

3.2 VŌ is also charged with development and execution of commercial, event attraction and technology and data strategies for Te Kaha. These pre-opening costs are being met by VŌ for now ($4.7 million over five years) and will be recouped when Te Kaha is operational.

3.3 Section 66 of the Local Government Act 2002 requires VŌ to deliver a quarterly report to shareholders within two months after the end of the quarter and to include the information required by the Statement of Intent. VŌ’s Quarter 3 report meets these requirements.

4. Considerations Ngā Whai Whakaaro

4.1 The following table compares the number of events held and attendances for the year to date with the SOI target and the same nine month period last year.

Actual

YTD Q3

Budget

YTD Q3

Variance

YTD Q3

Prior year

YTD Q3

Variance

YTD Q3

Number of events

282

270

330

-48

Number of guests

462,000

450,000

+12,000

501,000

-39,000

Financial Performance

4.2 The following table presents VŌ’s operating performance for the nine months to 31 March 2024, compared with its SOI target and Quarter 3 performance in the previous year (2022/23).

Actual

YTD Q3

$000

Budget

YTD Q3

$000

Variance

YTD Q3

$000

Prior year

YTD Q3

$000

Variance

YTD Q3

$000

EBITDA

(1,382)

(1,177)

-205

1,182

-2,564

4.3 Against SOI target, the EBITDA deficit is higher by $205,000 which reflects higher uncontrollable overhead costs of around $600,000, offset by increased net food and beverage income of $500,000 including from SailGP. The unexpected cancellation of a major concert event (Blink182) has also negatively impacted VŌ’s financial performance.

4.4 VŌ has previously advised that the cost of insurance has increased by 54%, utilities by 20% and living wage by 10% and it advises these cost pressures continue. In addition, there has been inflationary pressure on the costs for maintaining facilities.

4.5 The number of events held and attendances were both slightly ahead of target (5% and 3% respectively). The relationship between EBITDA and event numbers is not linear - some events are higher yielding than others – in particular ticketed and business events which generally attract VŌ’s food and beverage offering.

4.6 Against the prior year, EBITDA is lower by $2.56 million, arising principally from a reduction in the Council’s operating grant of $800,000 (due to repayment of historical debt of around $12 million), lower net catering income by $400,000 due to fewer ticketed events (Q3 2024: 64 v Q3 2023: 105), uncontrollable overhead and facilities’ maintenance cost pressures of approximately $1 million and Te Kaha pre-opening costs are $300,000 higher than in the prior year reflecting the acceleration of work as the development of the arena progresses.

4.7 Expectations for financial year end (June 2024) – VŌ has advised that they expect to meet its full year target for event numbers, exceed the number of guests to its venues by 100,000 (+20%) but fall short of its EBITDA SOI target by circa $300,000 (18%), summarised in the table below:

EBITDA

$000

Event

Numbers

Number of guests

Full year SOI target

(1,668)

372

450,000

Estimated actual outturn)

(1,970)

376

550,000

4.8 The increased deficit largely reflects the on-going pressure of the uncontrollable costs VŌ has faced this year, coupled with the impact of the cancelled major concert event Blink182.

4.9 Venue utilisation is between 60-65% for VŌ’s two owned venues – Town Hall and Wolfbrook Arena. Around 20% of available time is reserved for repairs and maintenance.

4.10 The diversity of events during the quarter across all venues included sport, entertainment, lifestyle, business, education and community.

4.11 Non-financial performance targets, have all been met within reason.

Attachments Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	Venues Ōtautahi - Quarter 3 2023/24 Performance Report	24/1001387	212

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

Document Name – Location / File Link

Not applicable

Signatories Ngā Kaiwaitohu

Author

Linda Gibb - Performance Monitoring Advisor CCO

Approved By

Russell Holden - Head of Finance

Bede Carran - General Manager Finance, Risk & Performance / Chief Financial Officer

12. Christchurch City Holdings Ltd - Quarter 3 Performance Report
Reference Te Tohutoro:	24/610294
Responsible Officer(s) Te Pou Matua:	Linda Gibb, Performance Advisor, Finance Group
Accountable ELT Member Pouwhakarae:	Bede Carran, General Manager Finance, Risk & Performance / Chief Financial Officer

1. Purpose and Origin of the Report Te Pūtake Pūrongo

1.1 The purpose of this report is to present Christchurch City Holdings Ltd’s (CCHL’s) Quarter 3 performance report for year to date to 31 March 2024.

1.2 This report has been written having received CCHL’s Quarter 3 ‘traffic lights’ performance report on 31 May 2024 (refer Attachment A).

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Receives Christchurch City Holdings Ltd’s Quarter 3 2023/24 Performance Report.

3. Background/Context Te Horopaki

3.1 Section 66 of the Local Government Act 2002 requires CCHL to deliver a quarterly report to shareholders within two months after the end of the quarter and to include the information required by the Statement of Intent (SOI). CCHL’s Quarter 3 report meets these requirements.

4. Considerations Ngā Whai Whakaaro

Net profit and dividends

4.1 CCHL is forecasting that all its subsidiaries are on target to meet SOI net profit after tax (NPAT) and dividend targets by year end with the following exceptions:

· Lyttelton Port Company (LPC) continues to experience lower container volumes, bulk cargo and coal due to the global economic environment and difficulties in shipping through the Panama Canal and Red Sea. It is also reporting that it will not meet its $12.5 million dividend target, but that it is an issue of timing of the distribution between financial years only. This is a matter for CCHL to manage within the group to support its dividend payment obligations to the Council.

· From 1 April 2024 the Government has removed tax deductions for depreciation on commercial and industrial buildings. The effect is that the tax expense will be higher as there is no longer a tax deduction for depreciation which is a non-cash expense. Christchurch International Airport Ltd (CIAL) is expected to be particularly impacted, and to a lesser extent Orion and LPC.

Health and Safety

4.2 Against a zero target for events that could have resulted in serious injury to the public, Orion has recorded two events, neither of which resulted in serious harm. One involved contact with lines which triggered protection systems and de-energised the line. The second event was an electric shock in a home which is currently being investigated by the Electrical Workers Registration Board.

4.3 Against a target of zero reportable injuries/incidents, LPC has recorded four all of which were incidents, not injuries. They included falling objects from a crane, collision of a vessel with a ship-to-shore crane and the collapse of a building roof in extreme winds.

Climate change

4.4 Each of the subsidiary companies has developed Emissions Reductions Plans (ERPs). CCHL and CIAL are “mandated Climate Reporting Entities” and will publicly report climate risk exposures as required by Part 7A of the Financial Markets Conduct Act 2013.

4.5 Later in the year CCHL will update the Council on the implementation of the Group ERP. This will be in October after it has published its climate-related disclosures.

4.6 The traffic lights report advises all climate change SOI targets year to date across the CCHL group are on target to be met, with one exception. Orion advises that while it expects to have reduced emissions from its 2020 baseline footprint and from last year’s emissions total, it is unlikely to meet its 2023/24 target.

Attachments Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	Christchurch City Holdings Quarter 3 2023/24 Traffic Lights Report	24/1016125	223

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

Document Name – Location / File Link

Not applicable

Signatories Ngā Kaiwaitohu

Author

Linda Gibb - Performance Monitoring Advisor CCO

Approved By

Russell Holden - Head of Finance

Bede Carran - General Manager Finance, Risk & Performance / Chief Financial Officer

9. Capital Programme Performance Report May 2024
Reference Te Tohutoro:	24/440278
Responsible Officer(s) Te Pou Matua:	Richard Wesley, Acting Head of Programme Management Office
Accountable ELT Member Pouwhakarae:	Brent Smith, Acting General Manager City Infrastructure

13. Notice of Motion - Infrastructure Delivery Working Group
Reference Te Tohutoro:	24/1065831
Responsible Officer(s) Te Pou Matua:	Councillor Keown
Accountable ELT Member Pouwhakarae:	Mary Richardson, Interim Chief Executive

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
15.	Public Excluded Finance and Performance Committee Minutes - 29 May 2024			Refer to the previous public excluded reason in the agendas for these meetings.
16.	Christchurch City Holdings Ltd - Strategic issues report as at June 2024	s7(2)(b)(ii)	Prejudice Commercial Position	To protect commercially sensitive information which if it became known in the market could negatively impact on CCHL's profitability.	After the Annual Report for 2024 is issued (by end of September 2024).
17.	Visibility of Capital Project Budget Changes: May 2024	s7(2)(h)	Commercial Activities	The report 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