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 24 July 2024

Time: 9.34 am

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

Present

Deputy Chairperson

Members

Councillor Melanie Coker

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 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: All Councillors

The agenda was dealt with in the following order.

1. Apologies Ngā Whakapāha

Part C

Committee Resolved FPCO/2024/00048

That the apologies for absence from Mayor Mauger and Councillors MacDonald and Moore, and the apology from Councillor Harrison-Hunt for lateness, be accepted.

Deputy Mayor/Councillor Scandrett Carried

Councillor Harrison-Hunt joined the meeting at 9.35am.

2. Declarations of Interest Ngā Whakapuaki Aronga

Part B

Councillors Henstock and McLellan (ChristchurchNZ), Barber and Scandrett (Venues Ōtautahi), and Gough and Peters (Transwaste Canterbury Ltd) declared an interest in Item 8 - Final Statements of Intent 2024/25 for ChristchurchNZ Holdings Ltd, Venues Ōtautahi, Local Government Funding Agency and Transwaste Canterbury Ltd.

Councillor Templeton declared an interest in Item 9 - Christchurch City Holdings Ltd - Final Statement of Intent 2024/25.

Councillors Templeton (Christchurch City Holdings Ltd), Barber and Scandrett (Venues Ōtautahi) declared an interest in Public Excluded Item 12 - Re-appointment of Directors to Christchurch City Holdings Ltd, its Subsidiary Companies and Venues Ōtautahi.

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

Part C

Committee Resolved FPCO/2024/00049

That the minutes of the Finance and Performance Committee meeting held on Wednesday, 26 June 2024 be confirmed.

Councillor Peters/Councillor McLellan Carried

4. Public Forum Te Huinga Whānui

Part B

There were no public forum presentations.

5. Deputations by Appointment Ngā Huinga Whakaritenga

Part B

There were no deputations by appointment.

6. Presentation of Petitions Ngā Pākikitanga

Part B

There was no presentation of petitions.

Councillor Keown joined the meeting at 9.37am during consideration of Item 7.

7. Te Kaha Project - Elected Members Update

Committee Resolved FPCO/2024/00050

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

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

Councillor Keown/Councillor Henstock Carried

Secretarial Note: The Committee requested information on the gradient of the seating , and how it compares to other stadiums.

8. Final Statements of Intent 2024/25 for ChristchurchNZ Holdings Ltd, Venues Ōtautahi, Local Government Funding Agency and Transwaste Canterbury Ltd

Committee Resolved FPCO/2024/00051

Officer Recommendations accepted without change

Part C

That the Finance and Performance Committee:

1. Receives the final Statements of Intent 2024/25 for:

a. ChristchurchNZ Holdings Ltd;

b. Venues Ōtautahi;

c. Transwaste Canterbury Ltd; and

d. Local Government Funding Agency.

Councillor Coker/Councillor Harrison-Hunt Carried

Councillor Templeton declared an interest in Item 9 - Christchurch City Holdings Ltd - Final Statement of Intent 2024/25 and did not take part in any discussion or voting.

Councillor Gough left the meeting via audio/visual link at 10.17am and returned at 10.24am during consideration of Item 9.

9. Christchurch City Holdings Ltd - Final Statement of Intent 2024/25

Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Receives Christchurch City Holdings Ltd’s final Statement of Intent 2024/25; and

2. Notes the Christchurch City Holdings Ltd subsidiary companies’ final Statements of Intent 2024/25 are available at Annual Reports & Statements of Intent | CCHL.

Committee Resolved FPCO/2024/00052

Part C

That the Finance and Performance Committee:

1. Receives Christchurch City Holdings Ltd’s final Statement of Intent 2024/25; and

2. Notes the Christchurch City Holdings Ltd subsidiary companies’ final Statements of Intent 2024/25 are available at Annual Reports & Statements of Intent | CCHL.

3. Notes in its next Letter of Expectations that CCHL ensures it considers seeking Living Wage accreditation for all CCHL subsidiaries within twelve months of the acceptance of the Statement of Intent.

Councillor Fields/Councillor McLellan Carried

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

Committee Resolved FPCO/2024/00053

Part C

That Bryan Pearson (Chair) and Paul Silk (Acting CE) of Christchurch City Holdings Ltd remain after the public have been excluded for Item 12 of the public excluded agenda as they have knowledge that is relevant to that item and will assist the Council.

AND

That at 10.31am the resolution to exclude the public set out on pages 145 to 146 of the agenda be adopted.

Councillor Fields/Deputy Mayor Carried

The public were re-admitted to the meeting at 10.59am.

Karakia Whakamutunga: All Councillors

Meeting concluded at 11.00am.

CONFIRMED THIS 28TH DAY OF AUGUST 2024

Councillor Sam MacDonald

Chairperson

7. Key Organisational Performance Results - Year end (June) 2024
Reference / Te Tohutoro:	24/1141289
Responsible Officer(s) Te Pou Matua:	Peter Ryan, Head of Corporate Planning & Performance Peter.Ryan@ccc.govt.nz
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. Receive the information in the Key Organisational Performance Results – June (year-end) 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 web page

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

4.3 Community level of service delivery reported performance at 82.2%, against Executive Leadership Team’s (ELT) target of 85%. The target was not achieved, but shows an improvement of 1.4% from the final May forecast.

4.4 Key project milestone delivery has been achieved at 88%, a 1% improvement from the May forecast against ELT target of 85%.

4.5 Non-Key project delivery achieved at 86% against ELT’s target of 85%.

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

4.7 Funding programme budgets allocated for FY2025 by 1^st March 2024 remains reported at 93%, meeting ELTs target of 90%.

4.8 Budget drawdowns for FY2026 and 2027 by 1^st May 2024 is reported at 86%, not meeting ELTs target of 90%.

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

4.10 Operational budget is reported as a surplus of $20.4m (after carry-forwards).

4.11 For detailed information refer to the Financial Performance Report.

4.12 Delivery of the overall approved capital programme budget is reported at 4% (overspend) (rounded figure). This did not achieve the organisational target of between 0% and -10%.

4.13 More information is available in the Capital Programme Performance Report.

5. Service delivery

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

A screenshot of a data report

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5.1 Community levels of service (LOS) achieved 82.2% delivery against the performance target of 85%.

5.2 Actuals, comments and remedial actions from managers for LOS exceptions are available in Attachment A.

5.3 Service delivery forecasts for activities range from 38.9% to 100% achievement. In summary, key forecast Levels of Service (LOS) exceptions for the June/year-end period include:

5.3.1 Transport and Solid Waste Resource Recovery activities have ten LOS which did not meet target related to road and footpath condition, cycleways, including resident satisfaction, deaths or serious injury crashes, Christchurch being a walk and cycle friendly city, transport mode-share, resident satisfaction with public transport and domestic kerbside collection.

5.3.2 Water Supply, Wastewater, Stormwater Drainage and Flood Protection activities combined have ten LOS which did not meet target 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, flood protection, and water loss and average water consumption.

5.3.3 Regulatory and Compliance group of activities activity has 10 LOS which did not meet target. Four of these relate to building consents and code of compliance certificates processing timeframes including resident satisfaction and Building Warrant of Fitness Audits. Three further LOS which did not meet target relate to notified and non-notified resource management applications processed within statutory timeframes and developing a coastal hazard assessment and strategic adaptation framework, while the remaining three LOS relate to investigations of dangerous building reports, food control plan verification visits and response to complaints in relation to excessive noise.

5.3.4 Community Housing activity has one LOS which did not meet target related to Council making a contribution to the Community Housing supply in Christchurch.

5.3.5 Communities and Citizens group of activities has six LOS which did not meet target related to Citizen and Customer Services (2); Parks (4), which mostly relate to the latest annual Resident Satisfaction Survey results.

5.3.6 Public Information and Participation activity has one LOS which did not meet target related to providing advice and support in community engagement, and consultation planning and delivery, to teams across the organisation and to Elected Members.

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

5.5 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).

5.6 The following recommendations are presently being enacted, towards improving forecasting of LOS and other ELTs performance priorities for the year ahead:

5.6.1 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.

5.6.2 ELT promote not leaving submitting status reporting until closing day where possible to ensure Corporate Planning & Performance have sufficient time to review and amend reporting.

5.6.3 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.

5.6.4 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.

5.7 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.

6. 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

6.1 Key project milestone delivery achieved 88% delivery against the target of 85%. Of the 24 identified key projects, 21 met their milestone baseline target date at year-end.

6.2 Non-Key project milestone delivery achieved 86.0%, delivery against the target of 85%.

6.3 A screenshot of a computer screen

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

6.4 Below is a view of capital delivery performance (financial) for the 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.

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

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

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

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

· from a consistent $483m to $488m planned budget for the three years 2021-24,

· to between $569m to $668m planned budget for the future three years (2024-27). This is an increase of between 18%-37% from what was planned and delivered for 2021-24.

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

6.10 For the year just concluded (Year 3 of the 2021 LTP) the revised total programme budget for CCC to deliver was $483m (blue line). To the end of June 2024, the total forecast capital delivery increased to $502m (green line), which equates to 103.9% forecast delivery, exceeding budget for the first time.

6.11 This delivery value ($502m) is an 11% increase from the previous year’s (2022/23, $452m), includes both core and externally funded works, but excludes Te Kaha.

6.12 Council delivery for 2022/23 and 2023/24 (green line) show a distinctive lift from that seen the previous four years. This higher level of delivery (approx. $450m to $500m per annum) informed the development of the LTP 2024-34.

6.13 However, as noted above, delivery currently programmed into the draft LTP for 2024/25 to 2026/27 shows further significant increase over historical delivery patterns (blue line; 2024/25, 2025/26, 2026/27).

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

6.15 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.

6.16 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.

6.17 Capital planning performance shows funding programme budgets allocated for FY2025 by 1st March 2024 was reported at 93%, achieving ELTs target of 90%.

6.18 Budget drawdowns for FY2026 and 2027 by 1st May 2024 was reported at 86%, not achieving ELTs target of 90%. Funding programme budget draw-downs were forecast at 80% as early as September 2023. LTP 2024-34 programme development (draft and final), including Council input, may have been a factor in these future year draw-downs (FY26/FY27) being less than target, and less than in previous years.

7. Finance

7.1 For year-end the organisation reports an operational surplus of $20.4m (after carry-forwards).

7.2 For more information refer to the Financial Performance Report.

7.3 Overall capital programme budget expenditure final result is 4% (overspend) (rounded), not achieving ELTs target (between 0% to -10%).

7.4 More detailed information is available in the Capital Programme Performance Report.

Attachments / Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	LOS Exception Commentary June 2024	24/1307944	22
b ⇩	Community Board Report summary-June 2024	24/1309368	34

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

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

8. Financial Performance Report - June 2024
Reference Te Tohutoro:	24/1155900
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, and to receive treasury compliance, rates, general debt and insurance claim information for the year ended 30 June 2024.

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 - June 2024.

2. Approves operational carry forward requests from 2023/24 of a net $13.9 million (as detailed in Attachment B), to enable completion of projects in 2024/25 or later.

3. Approves net capital bring backs to 2023/24 of $2.8 million (as detailed in Attachment C) to cover work completed in 2023/24 partly offset by carry forwards to enable completion of capital projects in 2024/25 or later, noting that:

a. Excluding the $17.5 million carry forward for Te Kaha, the net bring back is $20.3 million.

b. a net $4.4 million comes from 2024/25.

c. a net $35.9 million moves to 2025/26, and notes substitutions may need to be considered as part of the 2025/26 Annual Plan to ensure affordability and deliverability in that year.

4. Approves net capital revenue and funding carry forwards of $3.2 million, and on-lending carry forwards as detailed in Attachment C.

5. Confirms the following treatment for the 2023/24 operating surplus of $20.4 million:

a. Notes $7.36 million, being higher than budgeted subvention receipts received in the 23/24 financial year, was applied to reduce 2023/24 borrowing as resolved with the adoption of the 2024/34 LTP.

b. $0.5 million of unspent weather event contingency budget to be transferred and added to the $1.1 million sitting in the Adverse Event fund, which will provide $1.6 million for any future weather event that exceeds, the normal annual budget provision of $0.5 million, and also provide $6.0M for commercial contingencies which may be subject to balance date adjustments.

c. The balance of $6.5 million be applied to the repayment of rates funded debt.

Brief Summary

2.1 The operating surplus for the year, after carry forwards, is $20.4m, an improvement of $7.9m from the May forecast.

2.2 Operational expenditure (Opex) carry forward requests of $13.9m are materially lower than the $18.9m in 2023, noting that the carry forwards also $3m for Edgeware Pool, which was also included last year.

2.3 At the end of the financial year the capital programme, before carry-forwards and bring backs from prior years, was overspent by $1.5m. The core/external programme was overspent by $19.0m, offset by an underspend on Te Kaha of $17.5m.

2.4 All treasury risk metrics are within policy limits.

3. Operating Result

3.1 The operating surplus for the year, after carry-forwards, is $20.4m, an uplift of $7.9m from the May forecast. This result is primarily due to, increased subvention receipts, savings in personnel costs, lower waste management and transport operational costs, increased recreation & sport revenues due to higher participation, and increased rates income. These are partially offset by reductions in staff capitalisation and additional costs in the Digital unit, along with increased operational and maintenance costs in Three Waters.

3.2 The improvement of $7.9m from the May forecast has primarily been driven by Waste Management and Transport operational results exceeding their forecasts, opex costs being reclassified to capital expenditure (capex) on projects, corporate contingencies, eg weather events, remaining unspent, higher Recreational and Sport Community Arts and Events (RSE) revenues, and an improvement in the net interest position. These were partially offset by an overspend in Three Waters maintenance and operating costs.

3.3 Of the $20.4m cash operating surplus:

3.3.1 the $7.4m of additional subvention receipts has been applied to reducing borrowing, as resolved in the 2024/34 Long Term Plan;

3.3.2 it is recommended the $0.5m of the unspent weather event contingency budget be added to the $1.1m sitting in the adverse events fund, which will provide $1.6m for any future weather events that exceed normal annual budget capacity, and to provide $6.0M for commercial contingencies which maybe subject to balance date adjustments: and

3.3.3 The remaining $6.5m surplus could be applied, in accordance with the default recommendation and good practice, to the repayment of debt. This would produce an additional $0.2m lower debt repayment annual benefit in the 2025/26 Annual Plan, as well as reducing interest costs by $0.3m p.a.

4. Operational Expenditure and Revenue

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

4.2 Operational revenue exceeds expenditure as it includes rates revenue for capital renewals and debt repayment, as referenced in the Financial Strategy. 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.

	Annual Results			After Carry Forward		Forecast Comparison
$m	Actual	Budget	Var	C/ Fwd	Var	May	Var
Operational
Revenues	(1,013.1)	(994.2)	18.9	(2.2)	21.1	20.2	0.9
Expenditure	744.5	760.1	15.6	16.1	(0.5)	(7.7)	7.3
Funds not available for Opex	239.1	234.1	(5.0)	(4.8)	(0.2)	0.1	(0.3)
Operating (Surplus)/Deficit	(29.5)	-	29.5	9.1	20.4	12.6	7.9

4.3 Brief summaries of revenue and expenditure variances are highlighted below. Results by Activity are shown in Attachment A.

4.4 Revenues are $18.9m ahead of budget at year-end, and $21.1m after carry forwards. Key drivers for the variance include:

Variance	After carry forward($m)
Subvention receipts from Council controlled organisations	7.4
Waste operations (primarily Burwood landfill & Ecocentral)	5.6
Consenting revenues (reducing consents backlogs)	2.3
Recreation & Sports Centres increased participation	3.2
Rating base growth	1.2
Rates penalties	1.9
Rates valuation objections (prior year)	(0.3)
Transwaste dividends	(0.5)
Miscellaneous minor revenues	0.3m
Total	21.1

4.5 After year-end adjustments for carry forward of expenditure, Council’s operating expenditure is $0.5m over budget. The result is largely due to the variances below (unfavourable variances are in ()):

Variance	Result after C/Fwd ($m)
Staff Costs (Units carrying vacancies / unfilled positions)	5.6
Waste operating costs (lower recycling processing fees, lower residual waste disposal fees and lower organics processing costs)	3.5
Transport operating and maintenance costs (increased capitalisation and reduced non-essential maintenance)	3.4
Numerous minor changes	3.1
District Planning professional advice costs accelerating	(2.7)
Digital purchase order receipting errors resulting in FY-23 costs being recorded in FY-24, and increases in software renewal costs greater than budgeted.	(3.2)
Digital capitalisation budget allocation issue resolved in LTP 2024-34.	(4.0)
Three Waters maintenance & operating costs (additional reactive maintenance) and CWTP design costs	(6.2)
Total	(0.5)

4.6 Funds not available for Opex; items included in this category and contributing to the variance are revenues received for delivery of the Housing and Dog management activities (both non-rates funded), Capital Endowment funded projects, and Capital grants (borrowed).

4.7 Within operational expenditure there are requested carry forwards totalling a net $13.9m for uncompleted work. These are listed in Attachment B. A number of Better Off Funding funded items are included.

5. Capital Expenditure and Revenue

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

	Annual Results			After Carry Forward		Forecast Comparison
$m	Actual	Budget	Var	C/ Fwd	Results	May	Var
Core Programme	457.5	455.9	(1.6)	(3.1)	1.5	13.4	(11.9)
External Funded Programme	44.2	26.8	(17.4)	(17.3)	(0.1)	(2.8)	2.7
Less unidentified Carry Forwards	-	-	-	-	-	(10.4)	10.4
Core/External Funded Programme	501.7	482.7	(19.0)	(20.4)	1.4	0.2	1.2
Te Kaha	206.7	224.2	17.5	17.5	-	0.0	0.0
Capital Programme Expenditure	708.4	706.9	(1.5)	(2.9)	1.4	0.2	1.2
Revenues and Funding	(316.4)	(303.5)	12.9	(3.2)	16.1	5.5	10.6
Borrowing required	392.0	403.3	11.3	(6.1)	17.5	5.7	11.7

Capital Expenditure

5.2 Gross capital expenditure of $708.4m has been incurred against a budget of $706.9m.

5.3 At the end of the financial year the capital programme, before carry forwards / bring backs, is overspent by $1.6m (0.2%). The core/external programme is overspent by $19.0m (3.9%), offset by an underspend on Te Kaha of $17.5m. The primary contributors to the core/external overspend are transport, digital and shovel ready/CRAF projects.

5.4 In May 2024 PMO was forecasting a core/external capital programme spend of $470m, the final annual result was $501.7m, a difference of $31.7m (6.7%).

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

5.6 A full schedule of recommended capital expenditure and revenue carry forwards is shown in Attachment C.

5.7 Due to a late budget change, there is one carry forward for $0.3m on the carry forward schedule not reflected in the above table. The carry forward relates to a Transport CRAF project.

Capital Revenues and Funding

5.8 Capital revenues are $13.9m higher than budget at year end after carry forwards. This is due to higher development contributions ($12.1m), other miscellaneous capital revenues ($2.8m) and asset sales ($6.0m) partially offset by lower NZTA capital subsidy revenues ($7.4m). Reserve drawdowns are $2.2m higher than budget at year end caused by higher development contribution drawdowns.

5.9 The net effect is that Council’s opening borrowings are $7.5M higher than the opening position forecast in the LTP.

6. Special Funds

6.1 The annual movements and balance of the Housing Account and Capital Endowment Fund are shown in Attachment A.

6.2 The balance of funds available for allocation from the Capital Endowment Fund on 30 June 2024 was $1,795,082.

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 borrowing and Advances for 2023/24 are shown below ($m):

7.3 Advances are primarily to Christchurch City Holdings Ltd (currently $681.2m, up by $24m this year). The total also includes LGFA “Borrower Notes” of $56.0m (up by $9.3m this year) – these are interest-bearing convertible Notes that are required to be entered into each time Council borrows from LGFA.

Funding & Interest Rates

7.4 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

7.5 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%.

8. Rates Debt

8.1 Rates debt decreased $0.1m this quarter, as shown in the table below. Rates debt is $4.0m higher than June 2023.

March 2024

June

2024

Change Comment

Rates Debt	28.1	28.0	(0.1)	Total rates debt has remained stable this quarter.
Current year overdue (FY 2023/24)	25.7	26.4	0.7
Previous years arrears	2.4	1.6	(0.8)
Properties with arrears over $20,000	(no.) 55	49	(6)

8.2 The graph below shows 90+ days rates debt as a percentage of the annual rates strike in the respective year, with a three month moving average to smooth the quarterly cycle. This indicates that rate arrears are in hand.

9. General Debt

9.1 The decrease in June 2024 debt shown below is due to a general decrease in invoices issued and debts being received by their due date.

March 2024

June

2024

Change Comment

General Debt	16.7	3.6	(13.1)	Invoice for $9m outstanding in March paid in April.
3 – 6 months	0.25	0.17	(0.08)
6 months +	0.87	0.41	(0.46)

9.2 General debt of $65,222 has been written-off this quarter. Half of this amount relates to write-offs relating to damage to street poles. The total debt write-off for 2023/24 is $218,200 compared to $137,102 in 2022/23.

10. Insurance Claims

10.1 The table below outlines the number of events that have been notified by Council against its insurance policies as well as claims against Council from third parties for the Apr – June 2024 quarter.

	Policy	Claims / Notifications		Estimated Cost
	Policy	Above excess	Below excess	Estimated Cost
Claims by Council	Motor Vehicle	1	0	$5,000
	Material damage	1	0	$270,000
Claims against Council	PI / PL	0	0	$0

Attachments Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	Attachment A – Operational & Capital breakdown by Activities	24/1222184	49
b ⇩	Attachment B - Opex carry forward requests - Final	24/1354812	54
c ⇩	Attachment C - Capex carry forward requests - Final	24/1354870	58

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

Martin Zelas - Team Leader Rates

Adrian Seagar - Manager Insurance & Asset Management

Approved By

Russell Holden - Head of Finance

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

10. Applications to the 2024/25 Capital Endowment Fund - Papanui Toc H Athletics Club, Riccarton Leagues Club
Reference Te Tohutoro:	24/1227203
Responsible Officer(s) Te Pou Matua:	Joshua Wharton, Team Leader Community Funding
Accountable ELT Member Pouwhakarae:	Andrew Rutledge, Acting General Manager Citizens and Community

1. Purpose and Origin of the Report Te Pūtake Pūrongo

1.1 The purpose of this report is for the Council to consider two applications for funding from its 2024/25 Capital Endowment Fund (CEF) by the Papanui Toc H Athletics Club and Riccarton Leagues Club.

1.2 The Capital Endowment Fund is available for not-for-profit organisations who require support for capital projects. They must demonstrate significant benefits for the City and its residents.

1.3 The decision in this report is of low significance in relation to the Christchurch City Council’s Significance and Engagement Policy. The level of significance was determined by assessing the number of people affected and/or with strong interest in the outcome of the result.

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Makes a grant of $95,000 from its 2024/25 Capital Endowment Fund to the Papanui Toc H Athletic Club Incorporated towards replacement of their artificial track, on the condition that:

a. The Club demonstrates that it has the resources and capacity to complete the project prior to funds being drawn down.

b. Final reporting is submitted within six months of project completion.

2. Makes a grant of $50,000 from its 2024/25 Capital Endowment Fund to the Riccarton Leagues Club towards its accessibility platform lift, on the condition that:

a. Funds are released as one single instalment of $50,000 on evidence that the Club has sufficient funds to being the project to completion.

b. Final reporting is submitted within six months of project completion.

3. Executive Summary Te Whakarāpopoto Matua

3.1 This report presents two applications for funding from the 24/25 Capital Endowment Fund.

3.2 Attachments A and B contain decision matrices which provide detailed information on the applications. This includes project details, financial information, strategic alignment and a rationale for each of the recommendations.

4. Background/Context Te Horopaki

4.1 In April 2001, the Council set up a Capital Endowment Fund of $75 million. This fund was established using a share of the proceeds from the sale of Orion's investment in a gas company. The Fund provides an ongoing income stream which can be applied to specific projects.

4.2 On 12 April 2018 the Council resolved to establish criteria for distributing the proceeds of the Capital Endowment Fund (CEF) (CNCL/2018/00057).

4.3 On 13 December 2018 the Council published eligibility and assessment criteria for the CEF and a standard application process. Assessment criteria are as follows:

4.3.1 That the value of the application is greater than $50,000.

4.3.2 That this project is a one off with no expectation of future Council funding.

4.3.3 That the project is not already underway but has run out of funding.

4.3.4 That the project has not already received Council funding through rates revenue, or other funding sources available from Council.

4.3.5 That the project demonstrates a benefit for the City of Christchurch, or its citizens, or for a community of people living in Christchurch.

4.3.6 That the benefits will be experienced now and in the future.

4.4 As this fund is generated through the interest of the sum generated from sale of Orion’s investment, the funding available will change annually.

4.4.1 As per the Long Term Plan 2024/25 the fund had generated $4.651m, which after adding the carry-forward of the previous year ($594,000), and deducting Long Term Plan 2024/25 commitments there is a remaining available balance of $2,424,000.

4.4.2 A detailed breakdown of the allocation is attached to this report as Attachment C.

4.4.3 Any unallocated balance at year-end will carry forward to 2025/26.

4.5 If the recommendations in this report are accepted the available balance of the Capital Endowment Fund in 2024/25 will be $2,279,000.

Options Considered Ngā Kōwhiringa Whaiwhakaaro

4.6 The following reasonably practicable options were considered and are assessed in this report:

4.6.1 To not recommend funding for the Capital Endowment Fund applications.

· This option is not recommended as the applications presented in this report have been assessed as eligible under the terms of the fund and have been developed in partnership with Council staff.

4.7 The following options were considered but ruled out:

4.7.1 To recommend partial funding for the Capital Endowment Fund applications.

· This option is not recommended as the projects are capital in nature and would risk not proceeding through to completion with a partial grant award.

5. Financial Implications Ngā Hīraunga Rauemi

Capex/Opex Ngā Utu Whakahaere

	Recommended Option -Award the Grants	Option 2 - Decline the Applications	Option 3 – Partial Funding
Cost to Implement	$145,000	Nil.	$0 - $145,000
Maintenance/Ongoing Costs	Nil.	Nil.	Nil.
Funding Source	Capital Endowment Fund	Capital Endowment Fund	Capital Endowment Fund
Funding Availability	Available	Available	Available
Impact on Rates	Nil.	Nil.	Nil.

6. Considerations Ngā Whai Whakaaro

Risks and Mitigations Ngā Mōrearea me ngā Whakamātautau

6.1 There is a risk that if this funding is not awarded, that the projects may not be delivered.

6.2 There are no mitigations to reduce this risk.

Legal Considerations Ngā Hīraunga ā-Ture

6.3 Statutory and/or delegated authority to undertake proposals in the report:

6.3.1 Council has the delegated authority to make decisions related to community grant funding.

6.4 Other Legal Implications:

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

Strategy and Policy Considerations Te Whai Kaupapa here

6.5 The required decisions:

6.5.1 Aligns with the Christchurch City Council’s Strategic Framework.

· “Manage ratepayers' money wisely, delivering quality core services to the whole community and addressing the issues that are important to our residents.”

· “Champion Ōtautahi–Christchurch and collaborate to build our role as a leading New Zealand city.”

· “Be an inclusive and equitable city which puts people at the centre of developing our city and district, prioritising wellbeing, accessibility and connection.”

6.5.2 Notes that the decision in this report is assessed as low significance based on the Christchurch City Council’s Significance and Engagement Policy. The level of significance was determined by assessing the number of people affected and/or with strong interest in the outcome of the result.

6.5.3 Are consistent with Council’s Plans and Policies.

· The Strengthening Communities Together Strategy

· The Physical Recreation and Sport Strategy

· The Equity and Inclusion Policy

6.6 This report supports the Council's Long Term Plan (2024 - 2034):

6.7 Communities & Citizens

6.7.1 Activity: Community Development and Facilities

· Level of Service: 2.3.1.1 Provide and manage funding for initiatives that facilitate resilient and active communities owning their own future - 100% of funding assessments detail rationale and demonstrate benefits aligned to Council’s strategic priorities, and where appropriate, Community Board Plans

· Level of Service: 2.3.1.2 Enable volunteer participation through the effective administration of the community grant schemes - Strengthening Communities Fund supports 2,185,000 volunteer hours annually, subject to eligible applications

Community Impacts and Views Ngā Mariu ā-Hāpori

6.8 All three of the proposed Capital Endowment Fund applications are strongly supported by their communities of interest and have a large number of future users of the space(s).

6.9 The decision affects the following wards/Community Board areas:

6.9.1 Waipuna – Halswell-Hornby-Riccarton

6.9.2 Waipapa – Papanui-Innes-Central

Impact on Mana Whenua Ngā Whai Take Mana Whenua

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

6.11 The decisions are not 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

6.15 The decisions in this report are unlikely to contribute significantly to adaptation to the impacts of climate change or emissions reductions.

Attachments Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	Papanui Toc H Athletic Club Inc. - Matrix	24/1431809	102
b ⇩	Riccarton Leagues Club - Matrix	24/1270613	103
c ⇩	Capital Endowment Fund - Balance available for allocation	24/1124544	104

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

Document Name – Location / File Link

Not applicable

Signatories Ngā Kaiwaitohu

Authors

Josh Wharton - Team Leader Community Funding

Helen Miles - Community Recreation Advisor

Angela Leatherby - Sports Liaison Advisor

Approved By

Gary Watson - Manager Community Partnerships

Matthew McLintock - Manager Community Governance Team

Andrew Rutledge - Acting General Manager Citizens and Community

9. Capital Programme Performance Report End of Year FY24
Reference Te Tohutoro:	24/1190950
Responsible Officer(s) Te Pou Matua:	Nicky Palmer, Head of Programme Management Office
Accountable ELT Member Pouwhakarae:	Brent Smith, Acting General Manager City Infrastructure

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
12.	Public Excluded Finance and Performance Committee Minutes - 24 July 2024			Refer to the previous public excluded reason in the agendas for these meetings.
13.	Visibility of Capital Project Budget Changes: June and July 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
14.	2024/2025 Insurance Renewal	s7(2)(b)(ii), s7(2)(i)	Prejudice Commercial Position, Conduct Negotiations	Insurance renewals are undertaken on a confidential basis to protect Council's negotiating position with insurers.	30 September 2025 This report may be released after the end of the 2024/2025 cover year, however specific details around financials and terms must remain confidential.