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 28 August 2024

Time: 9.30 am

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

Present

Chairperson

Deputy Chairperson

Members

Councillor Sam MacDonald

Councillor Melanie Coker

Mayor Phil Mauger

Deputy Mayor Pauline Cotter

Councillor Kelly Barber

Councillor Celeste Donovan

Councillor Tyrone Fields

Councillor James Gough - Via audio/visual link

Councillor Tyla Harrison-Hunt

Councillor Victoria Henstock

Councillor Yani Johanson

Councillor Aaron Keown - Via audio/visual link

Councillor Jake McLellan

Councillor Andrei Moore - Via audio/visual link

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 Decision
There were no apologies.

2. Declarations of Interest Ngā Whakapuaki Aronga

Part B

There were no declarations of interest recorded.

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

Part C

Committee Resolved FPCO/2024/00043

That the minutes of the Finance and Performance Committee meeting held on Wednesday, 24 July 2024 be confirmed.

Councillor Coker/Councillor Harrison-Hunt 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 Harrison-Hunt joined the meeting at 9.32am during consideration of item 7.

7. Key Organisational Performance Results - Year end (June) 2024

Committee Resolved FPCO/2024/00044

Officer recommendations accepted without change

Part C

That the Finance and Performance Committee:

1. Receive the information in the Key Organisational Performance Results – June (year-end) 2024 report.

Councillor MacDonald/Mayor Carried

Secretarial note: The Committee noted that the 12 month average speed to answer telephone enquiries was 126 seconds, and asked for information on the annual number of calls received.

8. Financial Performance Report - June 2024

Committee Resolved FPCO/2024/00045

Officer recommendations accepted without change

Part C

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.

Councillor MacDonald/Councillor McLellan Carried

9. Capital Programme Performance Report End of Year FY24

Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Receives the information in the Capital Programme Performance Report for the end of Financial Year 2023/24 (FY24).

2. Confirms the draft set of FY25 Watchlist projects (as set out in Attachment B).

Committee Resolved FPCO/2024/00046

Part C

That the Finance and Performance Committee:

1. Receives the information in the Capital Programme Performance Report for the end of Financial Year 2023/24 (FY24).

2. Confirms the draft set of FY25 Watchlist projects (As set out in Attachment B) with the addition of 26601 Major Cycleway – Ōtākaro Avon Route (Section1) Fitzgerald to Swanns Road Bridge (OARC) and Bromley Roads (67989).

Councillor MacDonald/Mayor Carried

Secretarial note: The Committee requested information on the percentage of projects that had an increase in the budget for the FY24 year.

10. Applications to the 2024/25 Capital Endowment Fund - Papanui Toc H Athletics Club, Riccarton Leagues Club

Committee Resolved FPCO/2024/00047

Officer recommendations accepted without change

Part C

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 bring the project to completion.

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

Deputy Mayor/Councillor Henstock Carried

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

Committee Resolved FPCO/2024/00048

Part C

That at 9.56am the resolution to exclude the public set out on pages 108 to 109 of the agenda be adopted.

Councillor MacDonald/Deputy Mayor Carried

The public were re-admitted to the meeting at 10.35am.

Karakia Whakamutunga: All Councillors

Meeting concluded at 10.35am.

CONFIRMED THIS 25^TH DAY OF SEPTEMBER 2024

Councillor Sam MacDonald

Chairperson

7. Key Organisational Performance Results - August 2024
Reference Te Tohutoro:	24/1615210
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 performance towards delivering year one of our Long-term Plan 2024-34 (LTP), our contract with the community.

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

1. Receives the information in the Key Organisational Performance Results - August 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.

3.2 Levels of service (LOS) are now presented in consolidated format, which means that exceptions are put in perspective against those performance measures that are on track. This report, as well as all supporting activity reports, have been extensively reworked to achieve this.

4. Considerations Ngā Whai Whakaaro

4.1 The key organisational performance targets include:

· Service Delivery (levels of service)

· Capital Projects (both delivery and planning)

· Value for Money (finance – activity budgets and capex)

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4.2 Throughout 2023 and the first half of 2024 the LTP 2024-34 was developed. The draft LTP was adopted on 11 March 2024. Following consultation, and hearing and considering the submissions Council adopted the final LTP 2024-34 on 27 June 2024.

4.3 Following adoption council systems were updated with the approved content to enable reporting against the adopted LTP.

4.4 In early August, the Executive Leadership Team outlined their, “priorities and focus areas for the 2024/25 year. Our foremost priority is to fulfil the promises outlined in our Long-Term Plan. This plan is our contract with the community, detailing the services we will provide and the projects we will deliver. It sets clear expectations for service levels.” ELTs Organisational Performance Priorities and targets provide the basis for performance reporting ELT and Finance & Performance Committee.

4.5 Over the last month work has been undertaken to re-orientate performance reporting systems and processes to meet ELT priorities.

4.6 This report provides the first monthly performance forecasts to ELT for the LTP 2024-34.

4.7 Overall organisational performance priority forecasts are mixed.

4.8 Community level of service delivery (79.7%) (LOS) performance forecasts start the year conservatively, below the ELT performance target (85%) and forecasting below the YE pre-audit result for 2023/24 (82.2%).

4.9 Management LOS delivery (80.4%) also begins the year conservatively, below the ELT performance target (85%) and forecasting below the YE pre-audit result for 2023/24 (84.8%). Through implementation of recommended management actions, it is most likely both LOS forecasts will see good improvement in September (next month) reporting.

4.10 Capital project milestone delivery performance is forecasting 84.1% against the updated ELT target of 85%. This target now reports both key and non-key projects combined, which ended the previous year achieving 88% and 86% respectively.

4.11 Capital planning performance forecasts both show good progress for this time of year, against the revised ELT targets of 90%.

· Funding programme budgets allocated for FY2026 by 31st March 2025 reported at 78.4%.

· Budget drawdowns for FY2027 and 2028 by 30th June 2025 is reported at 78.1%.

4.12 Activity budgets, actively managed to budget = / < $0, the first forecasts report that 92.3% of activities are being managed to budget, against the new ELT target of 100%.

4.13 Deliver Capital Programme within approved budget is forecast to meet target, -$37.1m against the new ELT target of = / < $0. This is forecast to meet target.

5. Service Delivery

5.1 Community level of service delivery (79.7%) (LOS) performance forecasts start the year conservatively, below the ELT performance target (85%) and forecasting below the YE pre-audit result for 2023/24 (82.2%). In line with the standing Audit and Risk Management Committee (ARMC) request all LOS that did not meet the previous year will continue to be reported as an amber exception until evidence is provided that the target will or has been met. With implementation of recommended management actions, it is anticipated this forecast will see improvement in the September (next month) reporting.

5.2 Management LOS delivery (80.4%) also begins the year conservatively, below the ELT performance target (85%) and forecasting below the YE pre-audit result for 2023/24 (84.8%).

5.3 The scatter-diagram below (Attachment A) shows activity LOS delivery performance (Community and Management LOS), against activity budget performance (over- or under-spend).

· Activities variously report level of service delivery forecasts ranging from 45% to 100% achievement, while almost all activities are presently forecast on budget.

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· The vertical y-axis shows forecast service delivery (LOS) performance.

· The horizontal x-axis shows forecast budget over/underspend (scaled to relative budget).

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5.4 An updated view of LOS exceptions is attached to this report (Attachment B) - example:

· visual summary of activity overall service delivery and activity budget performance,

· underpinned by a more granular LOS summary across the activity, before

· listing specific exceptions detail and commentary.

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6. Capital Projects – Delivery and Planning

6.1 Capital project milestone delivery performance is forecasting 84.1% against the updated ELT target of 85%. This target now reports both key and non-key projects combined, which ended the previous year achieving 88% and 86% respectively.

6.2 The capital delivery target relates to projects Council is responsible for delivering, including Council-funded and externally funded projects.

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6.3 Capital planning performance forecasts both show good progress for this time of year, against the revised ELT targets of 90%.

· Funding programme budgets allocated for FY2026 by 31st March 2025 reported at 78.4%.

· Budget drawdowns for FY2027 and 2028 by 30th June 2025 is reported at 78.1%.

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

7. Value for Money

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7.1 92.3% of activities are forecast to meet budget (nett controllable cost, after carry-forwards), against the ELT target 100%. To align with changes to the performance target definition, management processes and systems are being refined to enable inclusion of relevant activity manager financial comments.

7.2 For more information refer to Attachment B (LOS Exceptions) and to the Financial Performance Report.

7.3 Overall capital programme budget expenditure is forecast at -$37.1m, against ELT’s target of within approved budget (= < $0). This is the first forecast for the new performance priority target and applies a PMO forecast of $510m against the current programme of $547.1m, approx. -7%. The forecast includes core and externally funded work but excludes Te Kaha.

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

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7.5 The forward view of capital delivery performance (financial) looks at commitments for the first three years of the LTP 2024-34, accompanied by confirmed capital delivery in preceding LTP-cycles against plan.

7.6 This view takes into account revised year-end budget delivery figures for 2023/24, and the adopted capital programme from the LTP 2024-34 (approved future years planned expenditure for 2024/25, 2025/26 and 2026/27).

7.7 The extended black line is the full planned delivery budget including Te Kaha.

7.8 The extended blue line shows the full Council planned delivery budget (excluding Te Kaha, and before any confirmed carry-forwards) - a considerable lift in Council planned delivery:

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

· to between $547m to $668m planned budget for the future three years (2024-27).

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

7.10 Currently, Council capital delivery (green line) for 2024/25 (year one of the LTP 2024) is forecast at $510m against the current programme budget of $547m (blue line). This equates to -$37.1m, or 93% forecast delivery.

7.11 This forecast delivery value is in line with the year-end actual value for 2023/24, $502m.

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

7.13 Figures align with the Financial and Capital Programme Performance reports.

Attachments Ngā Tāpirihanga

No.	Title	Reference	Page
a ⇩	Top Activities (service delivery and budget)	24/1600590	22
b ⇩	Service delivery (level of service) exceptions	24/1600591	24

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

Document Name – Location / File Link

Not applicable

Signatories Ngā Kaiwaitohu

Authors

Boyd Kedzlie - Senior Corporate Planning & Performance Analyst

Amber Tait - 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 - August 2024
Reference Te Tohutoro:	24/1363832
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 August 2024 including the current year forecast, and to receive current treasury compliance information.

1.2 This is a regular monthly report that is presented to the Committee.

2. Officer Recommendations Ngā Tūtohu

That the Finance and Performance Committee:

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

3. Executive Summary

3.1 The year-to-date operational surplus of $17.2m is $11.4m higher than budget year to date. This is primarily due to savings in insurance costs and lower personnel costs due to staff vacancies and timing of any collective salary increase. A surplus of $9.3 million is forecast this year primarily due to savings in insurance costs.

3.2 The total capital programme, before signalled carry forwards, is forecast to be under spent by $39.1 million. This comprises a forecast under spend of $37.3 million on the core/external funded programme and a forecast under spend of $1.8 million on Te Kaha.

3.3 All treasury risk positions are within policy limits.

4. Operating Forecast

4.1 The $9.3 million forecast year end surplus is largely driven by savings in insurance costs following direct staff negotiations with insurance brokers and a higher rates strike, driven by a higher final number/valuation of rating units.

5. Operational Revenue and Expenditure

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	(234.6)	(233.1)	1.5	(1,079.8)	(1.078.6)	1.3	-	1.3
Expenditure	147.8	166.9	19.1	819.1	827.2	8.0	-	8.0
Funds not available for Opex	69.6	60.4	(9.2)	251.4	251.4	-	-	-
Operating (Surplus)/Deficit	(17.2)	(5.8)	11.4	(9.3)	-	9.3	-	9.3

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

5.4 Revenues are $1.5 million ahead of budget year to date and are forecast to be $1.3 million higher at year end. Key drivers of actual and forecast variances to budget include:

Variance	YTD	Forecast (after c/f)
Rates strike	(0.2m)	1.0m
Transwaste Dividends	-	0.4m
Building consent volumes (31% higher than FY24 same period)	0.9m	-
Timing of Better Off Funding grant funding	0.5m	-
Recreation & Sports pools and fitness centres increased participation	0.3m	-
Hagley Park Parking Fees – installation of new parking metres not yet in place.	(0.3m)	-
Other revenues	0.3m	(0.1m)
Total	1.5m	1.3m

5.5 Expenditure is $19.1 million lower than budget year to date and forecast to be $8.0 million under budget at year end.

Key drivers of actual and forecast variances to budget include:

Variance	YTD	Forecast (after c/f)
Insurance Costs	7.9m	7.0m
Christchurch Cathedral Grant unpaid (due to Council decision / suspension of works on Christchurch Cathedral)	7.0m	-
Personnel Costs (Corporate increases not yet applied, units with vacancies which were planned to be filled e.g. Parks In-house maintenance team)	3.2m	1.4m
Other minor variances	1.0m	(0.4m)
Total	19.1m	8.0m

5.6 Funds not available for Opex – the YTD variance largely relates to the Cathedral grant decision, funding from the special fund has not been drawn.

5.7 Operational revenue and expenditure prior year comparison:

	FY25 Year to Aug Results			FY24 Prior Year to Aug			Var
$m	Actual	Budget	Var	Actual	Budget	Var	Actual
Operating revenue	(31.2)	(29.3)	1.9	(29.5)	(29.6)	(0.1)	(1.7)
Dividends	(3.0)	(3.2)	(0.2)	(2.0)	(3.1)	(1.1)	(1.0)
Interest	(9.4)	(9.3)	0.1	(8.9)	(9.0)	(0.1)	(0.5)
Rates income	(191.0)	(191.3)	(0.3)	(171.2)	(169.9)	1.3	(19.8)
Revenue	(234.6)	(233.1)	1.5	(211.6)	(211.6)	(0.0)	(23.0)

Personnel costs	41.8	45.0	3.2	36.8	40.2	3.4	5.0
Less recharged to capital	(8.0)	(8.6)	(0.6)	(7.7)	(8.3)	(0.6)	(0.3)
Grants and levies	9.5	15.5	6.0	12.4	10.9	(1.5)	(2.9)
Operating costs	62.8	70.6	7.8	65.1	66.6	1.5	(2.3)
Maintenance costs	17.3	19.9	2.6	18.1	19.9	1.8	(0.8)
Debt servicing	24.4	24.5	0.1	21.0	21.5	0.5	3.4
Expenditure	147.8	166.9	19.1	145.7	150.8	5.1	2.1

Net Cost	(86.8)	(66.2)	20.6	(65.9)	(60.8)	5.1	(20.9)
Other Funding
Transfers from Special Funds	0.3	(8.9)	(9.2)	(0.8)	(1.0)	(0.2)	1.1
Borrowing for opex	-	-	-	-	(1.2)	(1.2)	-
Less Rates for capex and debt repayment	69.3	69.3	-	62.6	62.6	-	6.7
Funds not available for Opex	69.6	60.4	(9.2)	61.8	60.4	(1.4)	7.8

Operating Deficit / (Surplus)	(17.2)	(5.8)	11.4	(4.1)	(0.4)	3.7	(13.1)

5.8 Explanations for the actual Revenue & Expenditure prior year differences shown above:

Revenue	FY-25	FY-24	Var
Operating Revenue
Building Consenting consent volumes	(5.0m)	(4.2m)	(0.8m)
Three Waters Trade Waste charges	(1.0m)	(0.3m)	(0.7m)
Dividends
Higher declared final Transwaste dividend	(3.0m)	(2.0m)	(1.0m)
Rates Income
Rates increase – higher overall rates to be collected by council	(190.5m)	(170.6m)	(19.9m)

Expenditure	FY-25	FY-24	Var
Personnel Costs
Higher personnel costs due to increases in FTE (127) & FY24 payrates	40.3m	35.3m	5.0m
Grants and Levies
Events ecosystem & partnership grants payments	0.2m	3.2m	3.0m
Operating Costs
Insurance Costs – Negotiations with brokers	29.6m	31.1m	(1.5m)
Rates on council owned properties – council rates charged increased	8.9m	8.1m	0.8m
Planning and Consenting – reduced reliance on consultants	0.3m	0.8m	(0.6m)
Three Waters – Wastewater Pumping & Water Supply Treatment service contracts	2.4m	2.9m	(0.5m)
Maintenance Costs
Community Parks operations maintenance	0.7m	1.7m	(1.0m)
Community Housing maintenance	0.8m	0.6m	0.2m
Debt Servicing
Higher debt levels resulting in increased ratepayer debt interest costs	14.0m	10.8m	3.2m

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	47.1	48.2	1.1		532.1	521.5	(10.6)	(21.0)	10.4
External Funded Programme	2.3	2.4	0.1		26.4	25.8	(0.6)	0.7	(1.3)
Less unidentified Carry Forwards	0.0	0.0	0.0		(48.5)	0.0	48.5	57.4	(8.9)
Core/External Funded Programme	49.4	50.6	1.2		510.0	547.3	37.3	37.1	0.2
Te Kaha	15.8	17.7	1.9		188.4	190.2	1.8	1.8	-
Total Capital Programme	65.2	68.3	3.1	6	698.4	737.5	39.1	38.9	0.2
Revenues and Funding	(60.4)	(64.6)	(4.2)		(330.8)	(330.5)	0.2	-	0.2
Borrowing required	4.8	3.7	(1.1)		367.6	407.0	39.3	38.9	0.4

Capital Expenditure

6.2 Gross capital expenditure of $65.2 million has been incurred against a year-to-date budget of $68.3 million.

6.3 Overall, total capital expenditure of $698.4 million is forecast (based on the PMO forecast of $510 million for CCC Capital-Core/External Funded), to be spent against the annual budget of $737.5 million. Of the $39.1 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 $4.2 million lower than budget year to date, due to Council having received lower NZTA MCR capital contributions, partially offset by higher development contribution revenues.

6.6 Capital revenues and funding are forecast to be in-line with budget at year end.

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 (CCHL, currently $681.2 million, unchanged year to date) and to the Local Government Funding Agency for Borrower Notes (currently $59.0 million, up $3.0m year to date).

7.4 By the end of June 2025, Net Debt (excluding cash balances) is projected to increase by $334.5 million, driven by capital expenditure (particularly Te Kaha). Advances are projected to decrease by $29.8 million, driven by CCHL repayments.

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

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7.6 Council’s interest rate risk is managed to reduce the volatility of interest costs from year to year. The interest rate on most existing Council debt has been fixed until at least June 2027, which has limited the impact of rising market interest rates over the past two years; New borrowing requirements over the next two years will be able to take advantage of the more recent and on-going decrease in market interest rates, broadly in line with 2024-34 Long Term Plan projections.

The average for 2023/24 was 5.1%; 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

Mitchell Shaw - Reporting Accountant

Steve Ballard - Group Treasurer

Karthik MG - Reporting Accountant

Approved By

Bruce Moher - Manager Corporate Reporting

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

9. Capital Programme Performance Report August 2024
Reference Te Tohutoro:	24/1190968
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
11.	Public Excluded Finance and Performance Committee Minutes - 28 August 2024			Refer to the previous public excluded reason in the agendas for these meetings.
12.	Visibility of Capital Project Budget Changes: August 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
13.	Banks Peninsula - Roading Maintenance Services Procurement Plan 29370140	s7(2)(b)(ii), s7(2)(i)	Prejudice Commercial Position, Conduct Negotiations	This report details the strategy and approval prior to tender; commercially senstive information.	30 April 2025
14.	Changes to Ōtautahi Community Housing Trust Financial Security Agreements	s7(2)(i)	Conduct Negotiations	Council is negotiating changes to security arrangements with the Ōtautahi Community Housing Trust. Publicly releasing details prior to the completion of negotiations may impact on the Council's position.	On completion of negotiations