TERMS OF
REFERENCE
Responsibilities
The
purpose of the Committee is to :
a)
control and review
expenditure across the Auckland Council Group to improve value for money
b)
monitor the
overall financial management and performance of the council parent organisation
and Auckland Council Group
c)
make financial
decisions required outside of the annual budgeting processes
Key
responsibilities include:
·
Advising and
supporting the mayor on the development of the Long Term Plan (LTP) and Annual
Plan (AP) for consideration by the Governing Body including:
-
Local Board agreements
-
Financial policy related
to the LTP and AP
-
Setting of rates
-
Preparation of the
consultation documentation and supporting information, and the consultation
process, for the LTP and AP
·
Monitoring
the operational and capital expenditure of the council parent organisation and
Auckland Council Group, and inquiring into any material discrepancies from
planned expenditure
·
Monitoring the
financial and non-financial performance targets, key performance indicators, and other
measures of the council
parent organisation and each Council Controlled Organisation (CCO) to
inform the Committee’s judgement about the performance of each
organisation
·
Advising the mayor
on the content of the annual Letters of Expectations (LoE) to CCOs
·
Exercising
relevant powers under Schedule 8 of the Local Government Act 2002, which relate
to the Statements of Intent of CCOs
·
Exercising
Auckland Council’s powers as a shareholder or given under a trust deed,
including but not limited to modification of constitutions and/or trust deeds,
granting shareholder approval of major transactions where required, exempting
CCOs, and approving policies relating to CCO and Co - governance
·
Approving the
financial policy of the Council parent organisation
·
Overseeing and
making decisions relating to an ongoing programme of service delivery reviews,
as required under section17A of the Local Government Act 2002
·
Establishing and
managing a structured approach to the approval of non-budgeted expenditure
(including grants, loans or guarantees) that reinforces value for money and an
expectation of tight expenditure control
·
Write-offs
·
Acquisition and
disposal of property, in accordance with the long term plan
·
Recommending the
Annual Report to the Governing Body
·
Te Toa Takatini
Powers
(i) All
powers necessary to perform the committee’s responsibilities, including:
(a) approval
of a submission to an external body
(b) establishment
of working parties or steering groups.
(ii) The
committee has the powers to perform the responsibilities of another committee,
where it is necessary to make a decision prior to the next meeting of that
other committee.
(iii) The committee
does not have:
(a) the power
to establish subcommittees
(b) powers that the
Governing Body cannot delegate or has retained to itself (section 2).
Exclusion of the public – who
needs to leave the meeting
Members of the public
All members of the public must leave the
meeting when the public are excluded unless a resolution is passed permitting a
person to remain because their knowledge will assist the meeting.
Those who are not members of the public
General principles
·
Access to confidential information is managed on a “need to
know” basis where access to the information is required in order for a
person to perform their role.
·
Those who are not members of the meeting (see list below) must
leave unless it is necessary for them to remain and hear the debate in order to
perform their role.
·
Those who need to be present for one confidential item can remain
only for that item and must leave the room for any other confidential items.
·
In any case of doubt, the ruling of the chairperson is final.
Members of the meeting
·
The members of the meeting remain (all Governing Body members if
the meeting is a Governing Body meeting; all members of the committee if the
meeting is a committee meeting).
·
However, standing orders require that a councillor who has a
pecuniary conflict of interest leave the room.
·
All councillors have the right to attend any meeting of a
committee and councillors who are not members of a committee may remain,
subject to any limitations in standing orders.
Independent Māori Statutory Board
·
Members of the Independent Māori
Statutory Board who are appointed members of the committee remain.
·
Independent Māori Statutory Board
members and staff remain if this is necessary in order for them to perform
their role.
Staff
·
All staff supporting the meeting (administrative, senior
management) remain.
·
Other staff who need to because of their role may remain.
Local Board members
·
Local Board members who need to hear the matter being discussed
in order to perform their role may remain. This will usually be if the
matter affects, or is relevant to, a particular Local Board area.
Council Controlled Organisations
·
Representatives of a Council Controlled Organisation can remain
only if required to for discussion of a matter relevant to the Council Controlled
Organisation.
|
Finance and
Performance Committee
26 May 2017
|
|
Auckland
Council organisation performance report for the period 1 July 2016 to 31 March
2017
File No.: CP2017/06682
Purpose
1. This
report provides an overview of the Auckland Council organisation (the parent
entity) performance results for the period 1 July 2016 to 31 March 2017.
Executive
summary
2. The
performance results presented in this report are for the Auckland Council
organisation (the parent entity), not the group. The group financial results,
together with separate reports on the performance of each CCO, will also be
presented to the Finance and Performance Committee at this meeting.
Highlights
and achievements
3. The
report includes an overview of the highlights and achievements in areas that
are key for achieving organisational objectives. There is a range of
significant highlights and achievements over the quarter, which includes the
following items.
· The
public opening of The Lighthouse by Michael Parekowhai was held on 11
February, with well-known New Zealand musicians playing inside the artwork.
There has been extensive positive media coverage and the work continues to
feature highly on social media as Aucklanders and visitors see it for the first
time.
· The
new online booking system for inorganic collections opened in February with
over 38,000 bookings received which was over half the bookings received in 2016
under the old system (66,579 bookings).
Service
performance
4. For
each of the activities delivered by the council, the Long-term Plan 2015-2025
(LTP) includes level of service statements and associated performance measures.
This report provides interim performance results showing how we are tracking on
the performance measures to date. Year-end outlook information is included in
the report together with commentary to explain actions being taken to address
any performance gaps.
5. The
latest performance measure results show that 63 per cent of the measures have
either achieved the targets set in the LTP or achieved a result close to
target. The remaining 37 per cent of performance measures did not achieve the
targeted service levels. The year-end outlook is that 37 per cent of the
performance measures will not achieve target. The reasons for these targets not
being achieved are noted in paragraphs 37 to 69 of this report.
6. A
number of performance measures in the regulatory services area are not
achieving the targets set in the LTP. This includes the following key measures:
· Building
consent and resource consent processing times
· Customer
satisfaction with the overall quality of building control service delivery
· Percentage
of high-risk alcohol premises inspected annually
· Percentage
of food premises graded annually
7. Economic
data for Auckland (Appendix 1 of Attachment A) continues to show strong growth
occurring. Net migration into Auckland, a key indicator of growth, shows 35,313
people have migrated into Auckland in the last year. The regulatory services
delivered by the council have been impacted by the growth in the city.
Significant increases in activity volumes have been experienced in both the
building control and resource consenting areas. To cope with the demand for
services, a range of initiatives have been put in place such as the Consenting
Made Easy programme, which encompasses a number of online consenting
enhancements and new mobile technology to carry out inspections, as well as
better workforce planning.
Financial
performance
8. The
financial performance results provide an indication of how the organisation is
performing against the budget and associated financial risks.
9. The
year-to-date net operating financial results are on track compared to budget,
with a $38 million favourable variance to budget. The year-end outlook is that
the net operating result will be in line with the approved budget.
10. Capital
expenditure delivery performance is progressing with a $303 million investment
completed to date, which is 54 per cent of the full programme of $558 million
approved for the year. The latest forecast indicates that about 94 per cent of
the programme will be delivered this year, with the shortfall being mainly due
to project delays.
11. Treasury
management performance is also included in the report. Total borrowings of $7.7
billion align to Annual Plan projections. In addition, the average funding
costs of debt are in line with the budgeted levels.
12. Employee
numbers have declined in the first nine months of the year. While the full-time
equivalent staff numbers for the regulatory areas have been increasing to cope
with the surge in demand for services in this area, there has been an
offsetting decrease in staff numbers in other areas, particularly the
back-office support areas. Despite these decreases in back-office FTE numbers,
the year-end outlook is likely to be a net increase in FTE due to ongoing
recruitment for vacant positions in the regulatory area to meet service demand.
13. The report
also includes additional information relating to a number of areas including
professional services expenditure, LGOIMAs and customer service, in the
appendices.
|
Recommendation/s
That the Finance and
Performance Committee:
a) note
the following highlights and achievements for the period 1 January to 31
March 2017:
i) The
public opening of The Lighthouse by Michael Parekowhai was held on 11
February, with well-known New Zealand musicians playing inside the artwork.
ii) The
new online booking system for inorganic collections opened in February with
over 38,000 bookings received which was over half the bookings received in
2016 under the old system (66,579 bookings).
b) note
the Auckland Council parent performance results for the period 1 July 2016 to
31 March 2017, highlighting:
i) That
63 per cent of the Long-term Plan (LTP) performance measures have achieved
the targets set in the LTP or achieved a result close to target.
ii) The
net operating financial results are on track compared to budget, with a $38
million favourable variance to budget.
iii) Capital
expenditure delivery performance is generally on track with a $303 million
investment completed for the nine-month period, with some delays expected in
the delivery of the full programme budgeted for the year.
|
Comments
14. The performance
results presented in this report are for the Auckland Council parent, not the
group. The group financial results together with separate reports on the
performance of each CCO will be presented to the Finance and Performance
Committee at the 26 May 2017 meeting.
Highlights
and achievements
15. Key
highlights and achievements for the quarter are summarised below. These are
sorted by the service delivery themes as expressed in the LTP.
Auckland development
16. Initiation of
City Centre Masterplan Refresh.
17. Connection
with Housing New Zealand Corporation looking to recycle material from homes.
Trial project being scoped.
18. We are
developing the high-level strategic directions and directives for the refreshed
Auckland Plan. The strategic content and the big issues for early engagement
were presented to the Planning Committee workshop in March.
19. The Design
Champion and City Centre Design unit are working collaboratively with the City
Rail Link project team on the Albert Street design.
Environmental management and
regulation
20. Auckland
Civil Defence and Emergency Management’s Rural Fire have continued to
provide nationwide support, with 20 staff members deployed to assist in
incident management and fire-fighting ground crew roles in Christchurch and
Hawke’s Bay.
21. The Auckland
Civil Defence and Emergency Management team responded to three severe localised
weather events over four days starting on 9 March. The collaboration between
Auckland CDEM, police and fire services, multiple council departments, Auckland
Transport and Watercare was pivotal to the success of the response.
22. The joint
Entrust / Vector / Auckland Council Energy Efficient Communities Project is now
underway. Installation of Tesla Powerwalls into 12 schools and community
facilities in the Ōtara-Papatoetoe Local Board area is underway. Home
advisory visits have also kicked off, to provide support for homeowners to
create warmer, drier homes and at the same time reduce energy bills.
23. Implementation
is progressing well for the Consenting Made Easy programme, with new online
tools released in March.
24. The new
online booking system for inorganic collections opened in February with over
38,000 bookings received which was over half the bookings received in 2016
under the old system (66,579 bookings).
25. Healthy
Waters recently participated in the Water Service Association of Australia
benchmarking exercise and received the top Asset Management Customer Value
globally, as well as placing first in three categories: Asset Operation, Asset
Replacement/ Renewal and Asset Management Applications.
26. Results from
the recent bi-annual survey of pest animal and weed control community groups
supported by Auckland Council showed that volunteers across the region
contribute more than 231,000 hours per year and actively control more than 100
weed species.
Parks, community and lifestyle
27. The public
opening of The Lighthouse by Michael Parekowhai was held on 11 February,
with well-known New Zealand musicians playing inside the artwork. There has
been extensive positive media coverage and the work continues to feature highly
on social media as Aucklanders and visitors see it for the first time.
28. Nine elected
members, the chief executive and around sixty staff participated in the
Auckland Council float at Auckland Pride Parade.
29. Popular and
well-attended Waitangi Day celebrations were held across the city including the
Waitangi Day Family Celebrations at Hayman Park in Manukau, Waitangi Day at
Hoani Waititi Marae, and the Ngati Whatua Ōrākei celebration at Okahu
Bay.
30. The Warkworth
Town Hall, a Category One heritage facility, reopened with a day of celebration
after a $5.6m restoration investment by the council.
31. Randwick Park
was named Community of the Year after being nominated by The Southern
Initiative.
32. City Parks
Services undertook preparations for six park and beach locations that hosted
World Masters Games events.
Governance and support
33. The
application period for positions on the council’s demographic advisory
panels closed on 9 February. A total of 237 applications were received
following an extensive and very successful promotion campaign across social
media, mainstream media, video and email. Panels were in place by mid-March.
34. The contact
centres are supporting the new rubbish wheelie bin service being rolled out in
the former Manukau City Council area with the establishment of a campaign
number for residents to call for support.
35. We
successfully delivered the Howick Local Board (Botany Subdivision) by-election.
Of the 36,333 electors issued with voting documents, 8,771 (24.14 per cent)
voted.
36. The annual
budget consultation closed on 27 March with submissions from citizens more than
doubling from the previous record high with input from 8,058 citizens received.
Service
performance
37. For each of
the activities delivered by the council, the LTP includes level of service
statements and associated performance measures. This section provides our performance
results to date for 2016/2017 compared to the targets set in the LTP. These
results are unaudited. The year-end audited results for 2015/2016 are available
in the Annual Report.
38. The quarterly
performance report presented here includes results for those LTP performance
measures where the information is available at the quarter end. Also included
in the report is a year-end outlook for the performance measure results,
together with commentary from the relevant business unit where there are performance
gaps.
39. As at 31
March, results for 61 per cent of the total number of LTP measures are
available for reporting. The remaining 39 per cent will be reported as they
become available, for example from customer survey results.
40. The latest
results show that 31 regional measures (61 per cent) have achieved the targets
set, one measure (two per cent) has achieved a result close to target (termed
‘substantially achieved’) and 19 measures (37 per cent) have not
achieved their targets. The year-end outlook is that 37 per cent of the
performance measures will not achieve the targets set in the LTP. The reasons
for these targets not being achieved are included on the following pages
alongside the latest results and outlook information.
41. A number of
performance measures in the regulatory services area are not achieving the
targets set in the LTP. This includes the following key measures:
· Building
consent and resource consent processing times
· Customer
satisfaction with the overall quality of building control service delivery
· Percentage
of high-risk alcohol premises inspected annually
· Percentage
of food premises graded annually.
42. Economic data
for Auckland (Appendix 1 of Attachment A) continues to show strong growth
occurring. Net migration into Auckland, a key indicator of growth, shows 35,313
people have migrated into Auckland in the last year. The regulatory services
delivered by the council have been impacted by the growth in the city.
Significant increases in activity volumes were experienced in both the building
control and resource consenting areas. For Building Control in the 12 months to
March 2017 the number of building consents lodged increased by 3 per cent
compared to the previous 12-month period; the equivalent comparison for resource
consents lodged shows an increase of 10 per cent. Indicative housing
information implies that the construction industry has capacity constraints and
this is reflected in the number of approved residential units actually being
constructed.
43. To cope with
the demand for consenting services, there is a range of initiatives that have
been put in place, such as the “Consenting Made Easy” programme,
which encompasses a number of online consenting enhancements and new mobile
technology to carry out inspections, as well as better workforce planning.
44. The symbols
below are used to summarise the results. These align with the symbols used in
the audited Annual Report.
|
Achieved
|
Substantially achieved
|
Not achieved but progress
made
|
Not achieved
|
|
|
|
|
|
|
|
|
|
|
|
Auckland
development
|
|
|
FY17
|
FY16
|
|
Performance
measures
|
Actual
Result
Q3
|
Target
Q3
|
YE
Outlook
|
Actual
Result
|
|
Percentage of unitary and
area plan changes and Notices of Requirement processed within statutory
timeframes
|
100%
|
100%
|
 
|
100%
|
45.
|
|
Regulation
|
|
46. Percentage
of registered food premises graded annually
|
|
|
Pressures remain on the licensing area to meet the
workload required under the Food Act 2016. We continue to focus
inspection efforts on high-risk food premises.
Weekly
monitoring is in place which will lift performance; however it is unlikely
that target will be met.
|
|
47. Percentage
of D/E graded food premises re-inspected within one month
|
|
|
Re-inspection
of all D and E grade premises has been a key focus area, as shown by the
improved results since FY15.
|
|
48. Percentage
of high-risk alcohol premises inspected annually
|
|
|
Inspection
focus centres on quarterly blitzes, the last of which will occur shortly.
These are supplemented by targeted premise inspections.
|
|
49. Number of
dwellings and sites consented towards Auckland housing targets
|
|
|
The term of the original
Auckland Housing Accord came to an end in September 2016. Provisions of the
recently passed housing legislation provide for a smooth transition from the
SHAs to the Unitary Plan; the Accord has consequently been extended to
31 December 2016. In total to September 2016, we have consented 37,538
net sections and dwellings - 96% of the Accord target of 39,000.
|
|
50. Percentage
of building consent applications processed within 20 working days
|
|
|
The
downward trend in consenting performance has now bottomed out with a positive
trend replacing it. The decline in performance to date was due to embedding
of new processing systems and an increase in consenting volumes.
The
Consenting Made Easy programme is gaining momentum with further initiatives
about to be launched. These initiatives are expected to have a significant
impact on customer experience and the statutory time performance.
|
|
51. Percentage
of customers satisfied with the overall quality of building control service
delivery
|
|
|
The
FY17 result is an improvement from last year, due in part to a change from a
monthly phone survey to a continuous monitor that now reaches almost all
customers and asks for opinions at all stages of the process. Direct
comparisons of data are therefore not advised.
The
Consenting Made Easy programme is gaining momentum with online consenting
fully live and streamlined consent processing in action. These
initiatives are expected to have a significant impact on customer experience
and the statutory time performance.
|
|
52. Additional
information
|
|
|
|
|
Median elapsed working days for building consent
processing 2016/2017
|
Elapsed time
|
Number of consents processed
|
|
Building
Consents
|
26 days
|
16,186
|
|
|
53. Percentage
of non-notified resource consent applications processed within 20 working
days
|
|
|
Processing
performance within timeframes has declined due to system implementation, the
introduction of the Auckland Unitary Plan, and the ability to engage planning
resource.
A
number of initiatives are underway to improve performance:
· the Consenting Made Easy programme
· the implementation of NewCore
· digital consent processing
· the implementation of the Unitary Plan
· actively addressing resourcing challenges.
|
|
54. Percentage of notified resource
consent applications processed within 70 working days
|
|
|
The
number of notified consents is approximately 1.3% of all consents. These are
generally highly complex applications.
Delays
occur for several reasons, including a focus on working with applicants and
parties affected by the project to address any issues and achieve the best
possible outcomes for all parties.
|
|
55. Percentage
of customers satisfied with the overall quality of resource consents service
delivery
|
|
|
The
FY17 result is an improvement from last year, due in part to a change from a
monthly phone survey to a continuous monitor that now reaches almost all
customers and asks for opinions at all stages of the process. Direct comparisons
of data are therefore not advised.
Improvement
programmes are being implemented such as Consenting Made Easy and mobile
technologies.
|
|
56. Additional
information
|
|
|
|
|
Median
elapsed working days for resource consent processing 2016/2017
|
Resource consent type
|
Elapsed time
|
Number of consents processed
|
|
Fully notified
|
231 days
|
110
|
|
Limited
notified
|
287 days
|
67
|
|
Non-notified
|
56 days
|
9,672
|
The number of elapsed
working days is higher than the number of processing working days due to:
· requests for further information for applications
that are incomplete or require additional reports or issues to be addressed
by the applicant, resulting in stopping the processing clock (under S92 of
RMA)
· extensions of processing timeframes for complex
applications, or at the request of the applicant (under S37 of RMA).
|
|
|
FY17
|
FY16
|
|
Performance measures
|
Actual
Result
Q3
|
Target
Q3
|
YE
Outlook
|
Actual Result
|
|
Percentage of bylaw-related requests for service (e.g. illegal
signs, public nuisance, street trading) responded to within three days
|
83%
|
80%
|
|
88%
|
|
Percentage of urgent animal management complaints such as dog
attacks responded to within one hour
|
99%
|
95%
|
|
99%
|
|
Percentage of noise complaints responded to within 30 minutes
for urban areas or 60 minutes for rural areas
|
77%(1)
|
80%
|
|
83%
|
|
Percentage of known dogs that are registered
|
89%(2)
|
90%
|
|
90%
|
|
Percentage of customers satisfied with the alcohol licensing
service
|
83%
|
67%
|
|
78%
|
|
Percentage of customers satisfied with the food and hygiene
licensing service
|
80%
|
70%
|
|
74%
|
|
Percentage of complainants satisfied with noise control
services
|
59%
|
51%
|
|
48%
|
|
Percentage of requests by iwi that are relevant and within
their area of interest that are responded to within three statutory days
|
100%
|
100%
|
|
99%
|
57.
|
|
(1) An
increase in the time taken for noise control contractors to attend noise
complaints has been noted across central, north and west areas. Contractors
have been reminded of the requirement to provide prompt responses to calls
for service. It is expected that the year-end result will meet target.
(2) There has been an increase in the number of
registered dogs, as well as ongoing tidy up of the number of known dogs.
|
|
Solid waste
|
|
58. Domestic
kerbside refuse (kilograms per capita per annum)
|
|
|
The current levels are
expected to continue until most of the new initiatives of the Waste
Management and Minimisation Plan are implemented. The full regional inorganic
service has been introduced, as well as larger recycling bins for Rodney,
Waitākere and North Shore areas. The Manukau roll out of refuse bins is
due mid-2017. These initiatives will contribute to reducing the amount of
waste we send to landfill.
|
|
|
FY17
|
FY16
|
|
Performance measures
|
Actual
Result
Q3
|
Target
Q3
|
YE
Outlook
|
Actual Result
|
|
Total number of Resource Recovery Facilities
|
3
|
3
|
|
3
|
59.
|
|
Stormwater management
|
|
60. The
median response time (in hours) to attend a flooding event, measured from the
time that Auckland Council receives notification to the time that service
personnel reach the site.
|
|
|
Manual
recording of GPS devices means that reporting is one month in arrears.
(Interfacing technology to enable real time reporting is being tested at the
moment and is expected to be available by June)
The
full year outlook has been negatively impacted by recent weather events.
Calls placed with the council are managed by contractors using GPS devices to
record response times. Control issues are a challenge as a majority of calls
are placed directly with the Fire Department and are not tracked by the
council.
Negotiations
with the Fire Department are underway to make call out data available to the
council by Q4.
|
|
61. Stormwater
manholes that pop open in flood events are made safe within two hours
|
|
|
Result
is one month in arrears. (Interfacing technology to enable real time
reporting is being tested at the moment and is expected to be available by
June.)
The
full year outlook has been negatively impacted by recent weather events.
Calls
placed with the council are managed by contractors using GPS devices to
record response times. Performance monitoring of contractors remains a
priority to reinforce the importance of responding to emergency requests for
service within specified timeframes.
|
|
|
FY17
|
FY16
|
|
Performance measures
|
Actual
Result
Q3
|
Target
Q3
|
YE
Outlook
|
Actual Result
|
|
The
number of flooding events that occur and the associated number of habitable
floors affected per 1000 properties connected to the Auckland
Council’s stormwater network
|
0.19 per
1000 properties (1)
|
1 per
1000 properties
|
|
0.1 per 1000 properties
|
|
The
number of complaints received about the performance of the stormwater
system per 1,000 properties connected to Auckland Council’s
stormwater system
|
0.64 per
1000 properties
|
3 per
1000 properties
|
|
0.39 per 1000 properties
|
|
Auckland
Council Stormwater compliance with resource consents for discharge from its
stormwater system, measured by the number of:
a) abatement
notices; and
b) infringement
notices; and
c) enforcement
orders; and
d) successful
prosecutions, received in relation to those resource consents
|
0
|
0
|
|
0
|
|
The
ratio of length of watercourse consented to be physically improved versus
physically degraded in the current year(2)
|
2.6:1
|
3:1
|
|
2.6:1
|
62.
|
|
(1) Result is one month in arrears.
Recent weather events are expected to negatively impact the result; however,
full-year targets are expected to be met.
(2) This is a new measure introduced in
FY16. The Stormwater Resource Management team is working closely with the
Resource Consents team to improve processes and data collection.
Resources are being applied for sourcing of data for 2017.
|
|
Environmental services
|
|
63.
|
|
|
FY17
|
FY16
|
|
Performance measures
|
Actual
Result
Q3
|
Target
Q3
|
YE
Outlook
|
Actual Result
|
|
Percentage
of council-controlled closed landfill discharge consents achieving category
one or two compliance rating
|
100%
|
98%
|
|
100%
|
|
Proportion
of catchments where sources of key contaminants are identified and impact
mitigation measures are in place
|
11.%(1)
|
20%
|
|
11%
|
|
Proportion
of catchments with stable or improving Macroinvertebrate Community Index
|
9.26%(2)
|
11%
|
|
9%
|
|
Length
(kms) of waterways protected annually with riparian planting and/or fencing
|
29.17(3)
|
34.6
|
|
29.17
|
|
Proportion
of schools participating in sustainability education programmes
|
70%
|
58%
|
|
75%
|
|
Number
of hectares of new forest or wetland habitat established on regional parks
|
0
|
8
|
|
8
|
|
Percentage
of threatened species under active management
|
34%
|
34%
|
|
34%
|
|
Percentage
of indigenous ecosystems under active management
|
68%
|
68%
|
|
68%
|
|
Number
of hectares under community pest control
|
124,000
|
89,000
|
|
124,000
|
|
Percentage
land area with less than 5% residual trap catch for possums
|
52%
|
51%
|
|
52%
|
|
Proportion
of kauri areas on council land that have active management or exclusion
measures in place for kauri dieback disease
|
68%
|
60%
|
|
68%
|
|
Proportion
of environmental programmes led or supported, with Māori participation
|
43%
|
15%
|
|
30%
|
|
Percentage
of Aucklanders covered by Community Response Plans
|
Not Measured
(4)
|
95%
|
|
20%
|
(1) The result has remained
at FY16 levels while the target for FY17 has increased. The existing
mitigation measures for sources of key contaminants have been reviewed and
the implementation of an aligned works programme has been rolled out with
results expected in Q4.
(2) The result has slightly
improved from FY16 levels while the target for FY17 has increased. As this
year’s work programme is undertaken it is expected that we will achieve
target.
(3) This is a cumulative figure for the length of the LTP
2015-2025. The result is below target as some of the planting and fencing
programmed has been delayed due to adverse soil conditions. Not all of
the planting and fencing carried out by private landowners using council
grants is included in the calculation. Increased scope of works includes
follow-up with private landowners that planting and site monitoring is in
place.
(4) The Community Response Programme has halted as the model
has been largely unsuccessful in building community resilience. A new
community empowerment model using a community-led, whole-of-society, evidence-based approach
has been developed to help support Auckland’s communities to build
resilience. This new approach will focus on how to best support
Auckland’s diverse communities to respond to and recover from hazards
and associated risks. Any strategies must be flexible so that they can be
adaptable and relevant to each specific area, meet the needs of the wider
community and offer different participation choices.
|
|
Parks, community and
lifestyle
|
|
64. Facility
Utilisation - utilisation at peak and off-peak times for council managed
community centres and venues for hire
|
|
Peak
|
Off-peak
|
|
The digital booking system, which
began recording bookings in FY17 Q1, along with a marketing campaign in FY17
Q3, is expected to improve customer experience and utilisation with results
expected from Q4. The system allows customers better visibility of
availability, better choice of booking times available in different venues,
and promotes off-peak discount rates.
|
|
65. Number of
visits to library facilities per capita
|
|
|
The results
show a decline in visitor numbers across all libraries with the exception of
those that had a new library building opened in the past two years
(Ōtāhuhu, Devonport, Te Atatū, Ranui and Waiheke). This
reflects a significant customer shift towards digital borrowing. E-issues now
make up 10 per cent of all items borrowed from Auckland Libraries.
Visitors that
do come to libraries spend more time utilising the services available, which
is positively impacting overall utilisation.
|
|
66. Number of
library items borrowed (millions)
|
|
|
This result includes
both physical and digital issues. The percentage of e-issues keeps
increasing, with changes in customers’ preferences towards more digital
services.
|
|
|
FY17
|
FY16
|
|
Performance measures
|
Actual
Result
Q3
|
Target
Q3
|
YE
Outlook
|
Actual Result
|
|
Number
of visitors to community centres and venues for hire
|
3,172,237
|
3,111,305
|
|
4,840,000
|
|
Percentage
of community facilities bookings used for health and wellbeing related
activity
|
23%
|
20%
|
|
21%
|
|
Total
permitted events taking place across the city
|
1,306(1)
|
2,200
|
|
1,689
|
|
Number
of visits to the Auckland Libraries website (millions)
|
5.0(2)
|
5.4
|
|
7.1
|
|
Use
of libraries as digital community hubs: Number of internet sessions per
capita (PC & WiFi)
|
3.48
|
1.5
|
|
4.5
|
|
Percentage
of items borrowed that are e-collections (e.g. eBooks, eAudiobooks)
|
11%
|
10%
|
|
9%
|
|
Percentage
of city park service requests completed on time
|
90.2%
|
90%
|
|
90%
|
|
Percentage of all assets that are graffiti free across the
city
|
94%
|
93%
|
|
94%
|
67.
|
|
(1) Last year opportunities were identified for relaxing
permitting requirements, to ensure that permits are only required where there
is a clear reason and benefit for doing so. This reduces administrative cost
and effort for event organisers. These changes mean the number of permitted
events is lower than the target – however, the outcome is positive.
(2) The Auckland Libraries website is unable to meet the
changing needs of our customers, including greater demand for e-books,
research needs and online resources. The new libraries website will go live
in September 2017.
|
|
Governance and support
|
|
68. Rolling 10-year return for diversified financial assets portfolio,
compared to reference portfolio
|
|
|
This
is the rolling average return for the diversified financial assets portfolio
since amalgamation (October 2010), then rolling 10 years.
The value of the portfolio is $232m and reflects the partial
sale of $100m this year, as approved by the Governing Body.
The YTD return on the portfolio was 6.8 per cent compared to
the reference portfolio’s 7.82 per cent.
|
|
|
FY17
|
FY16
|
|
Performance measures
|
Actual
Result
Q3
|
Target
Q3
|
YE
Outlook
|
Actual Result
|
|
Number of complaints
regarding council democratic processes upheld by the Auditor General or
Ombudsman
|
0
|
0
|
|
0
|
69.
|
|
|
|
|
|
Financial
performance
70. This section
provides an overview of the financial performance results for the nine months
ended 31 March 2017.
|
$millions
|
YTD
Actual
|
YTD
Revised
Budget
|
YTD
Variance
|
FY
Revised
Budget
|
FY
Annual
Plan
|
YE
Out-
look
|
|
Operating revenue
|
339
|
344
|
(5)
|
(1%)
|
538
|
532
|
|
|
Operating expenditure
|
1,546
|
1,591
|
45
|
3%
|
2,122
|
2,103
|
|
|
Net operating expenditure
|
1,207
|
1,247
|
40
|
3%
|
1,584
|
1,571
|
|
|
Rates revenue
|
1,645
|
1,647
|
(2)
|
-
|
1,649
|
1,649
|
|
|
Net operating surplus/(deficit)
|
438
|
400
|
38
|
9%
|
65
|
78
|
|
|
Net non-operating revenue/(expenditure)
|
51
|
(243)
|
294
|
-
|
(317)
|
(323)
|
|
|
Net surplus/(deficit)
|
489
|
157
|
332
|
-
|
(252)
|
(245)
|
|
Operating revenue
71. The overall result year to date is $5 million (one per
cent) unfavourable to budget. Property rental was budgeted in Council parent
but is more correctly accounted for in Auckland Transport’s books; and
lower finance income from lower cash holdings than budgeted which is offset by
reduced interest costs on debt (included in the ‘operating
expenditure’ category).
Operating expenditure
72. Year-to-date is $45 million (three per cent) favourable to
budget mainly due to lower interest costs incurred on debt (due to lower
interest rates and lower level of debt), and expenditure incurred later than
originally planned across various work programmes.
Rates revenue
73. Rates revenue
is expected to meet budget at year end. YTD March result is slightly lower than
budget, mainly due to a fair value discount accounting adjustment, which will
reverse out before year end. The rates revenue recognition happens at the
beginning of the year (July) at the time of the issuance of ratings notices in
accordance with accounting standards.
Net operating surplus/deficit
74. Overall surplus of $438 million is $38 million favourable
compared to budget. The operating budgets for the year include budgeted savings
targets of $25 million. These savings targets are being progressed through a
number of initiatives including smarter procurement, simpler and better
information technology, and bringing work in house to reduce reliance on
external providers. The year-end outlook for the net operating result is
expected to align with the overall approved budget for the year; however, there
are challenges and risks associated with delivering the savings targets for the
year.
Non-operating
revenue/expenditure
75. $294
million favourable compared to budget. This is mainly due to accounting
(non-cash) adjustments related to the fair value of the treasury derivatives
portfolio together with lower capital funding to CCOs due to the timing of
capital projects. The year-end outlook for the non-operating results has some
uncertainty, mainly due to the impact of global financial market changes on the
fair value of the treasury derivatives portfolio and the associated accounting
(non-cash) adjustments that may be required.
Net surplus/(deficit)
76. The
overall result shows a surplus of $489 million, which is $332 million
favourable compared to the budget, due to the reasons outlined above. The large
surplus for the nine months to date is mainly driven by lower-than-expected
interest costs and timing of funding for CCO projects, together with accounting
(non-cash) adjustments related to the fair value of the treasury derivatives
portfolio.
Net operating performance
results by theme
77. The next
table provides a split of the net operating result by each of the LTP themes.
Net operating result by theme
|
$million
|
YTD
Actual
|
YTD
Revised
Budget
|
YTD
Variance
|
FY
Revised
Budget
|
FY
Annual
Plan
|
|
Auckland development
|
93
|
102
|
9
|
9%
|
133
|
129
|
|
Economic and cultural development
|
59
|
70
|
11
|
16%
|
94
|
94
|
|
Environmental management and regulation
|
217
|
216
|
(1)
|
(1%)
|
290
|
294
|
|
Parks, community and lifestyle
|
363
|
361
|
(2)
|
-
|
490
|
490
|
|
Transport
|
307
|
307
|
-
|
-
|
416
|
416
|
|
Governance and support
|
169
|
191
|
22
|
12%
|
161
|
148
|
|
Net operating expenditure
|
1,207
|
1,247
|
40
|
3%
|
1,584
|
1,571
|
|
Rates revenue
|
1,645
|
1,647
|
(2)
|
-
|
1,649
|
1,649
|
|
Net operating surplus
|
438
|
400
|
38
|
9%
|
65
|
78
|
78. The
‘Economic and cultural development’ theme has a favourable result
year to date mainly due to timing of activities. For the ‘Governance and
support’ theme, the favourable variance to budget is largely due to the
lower interest costs incurred on debt, work programmes being slower than
expected, and timing of funding to the CCOs.
Capital expenditure delivery
performance
79. Over the
first nine months of the financial year, there was $303 million of capital
expenditure completed, which is 54 per cent of the full programme of $558
million approved for the year. The latest forecast indicates that about 94 per
cent of the programme is expected to be delivered this year. This forecast will
be close to year-end results as more projects have progressed, and risks and
project delays have been more clearly identified. In 2015/2016, 74 per cent of
the $556 million work programme was delivered.
Capital expenditure delivery
performance by theme
|
$million
|
YTD
Actual
|
YTD
Revised
Budget
|
YTD
Variance
|
FY
Revised
Budget
|
FY
Annual
Plan
|
%
Complete
|
|
Auckland development
|
50
|
58
|
8
|
98
|
143
|
51%
|
|
Environmental management and regulation
|
85
|
67
|
(18)
|
103
|
117
|
82%
|
|
Parks, community and lifestyle
|
117
|
160
|
44
|
244
|
254
|
48%
|
|
Governance and support
|
51
|
71
|
20
|
111
|
78
|
46%
|
|
Capital
expenditure
|
303
|
356
|
54
|
558
|
592
|
54%
|
80. Capital
delivery performance to date is largely on track except for some areas where
there have been delays and projects are expected to be delivered later than
originally planned. Projects progressed over the last quarter include the
Newcore project, Westgate Multi-Purpose Facility, Albany Stadium Pool, Stoney
Homestead redevelopment, Myers Park Splash Pad, Pope Road land purchase for
Healthy Waters, library collection renewals, and various asset renewals (e.g.
playgrounds, public toilets, car parks, leisure facilities, stormwater).
81. The
commercial property portfolio (part of the ‘Auckland development’
theme) has underspent due in part to approval of a strategic development fund
with related projects commencing late in the financial year. The ‘Environmental
management and regulation’ theme is overspent mainly due to Healthy
Waters projects progressing quicker than expected. The ‘Parks, community
and lifestyle’ theme is underspent mainly due to delays in new capital
projects and land acquisition.
Balance sheet performance
|
$million
|
Actual as at
March 2017
|
Projected per Annual
Plan 2017
|
Actual audited
June 2016
|
|
Assets
|
|
|
|
|
Property, plant and equipment
|
13,609
|
13,059
|
13,410
|
|
Other assets and investments
|
24,919
|
24,550
|
24,226
|
|
Less liabilities
|
|
|
|
|
Borrowings
|
7,710
|
8,025
|
6,942
|
|
Other liabilities
|
1,540
|
1,402
|
1,904
|
|
Net assets
(ratepayers’ equity)
|
29,278
|
27,182
|
28,790
|
82. Property,
plant and equipment: The increase since June 2016 is mainly a result of capital
expenditure progressing. Asset revaluations at 30 June 2016 resulted in asset
values higher than projected in the Annual Plan.
83. Total
borrowing at 31 March 2017 was $7.7 billion; forecast year-end debt is expected
to be in line with the Annual Plan projections. 
Treasury management
84. Treasury
management information can be found in Appendix 2 - Treasury report. This
report includes treasury compliance information together with information about
the performance of treasury activities against benchmarks.
85. Funding
costs: the year to date average cost of funds was 5.22 per cent, which is lower
than the budgeted level of 5.31 per cent.
86. The
Diversified Financial Assets portfolio totalled $233 million as at 31 March
2017, after a partial sale of $100 million (as approved by the Governing Body).
The short-term return on the portfolio year to date March was 6.8 per cent,
slightly lower than the benchmark portfolio (return of 7.8 per cent).
87. Debtors’
management information can be found in Appendix 6 of Attachment A. Rates debt
collection at 31 March is largely on track, with 30% of total customers paying
by direct debit and 22% customers on E-Rates.
Employee numbers
88. There is a
legislative requirement to include employee numbers in the audited Annual
Report each year. This is presented for both the Auckland Council parent and
the group (refer to page 76 in volume 3 of the Annual Report 2015/2016).
89. As not all
employees work the same number of hours per week a simple head count does not
give meaningful comparatives between years. Instead, full-time equivalent (FTE)
is used, which means everyone is converted to the equivalent of forty hours per
week. For instance a staff member working 20 hours per week would be shown as a
0.5 FTE.
90. The table
below shows the trend of both FTE and FTE per 1,000 residents in Auckland for
the council parent organisation. Overall the FTEs have declined in FY17. The
FTE for the regulatory areas has been increasing to cope with the surge in
demand for services in this area, while there have been offsetting decreases in
FTE in other areas, particularly the back-office support areas. When compared
with the growing population of Auckland, the FTE is trending favourably to a
lower rate. Despite these decreases in back-office FTE numbers the year-end
outlook is likely to be a net increase in FTE due to ongoing recruitment for
vacant positions in the regulatory area to meet service demand.
|
|
Q3 FY17
|
Q4 FY16
|
Q4 FY15
|
|
Number
of full-time equivalents (FTE)
|
6,054
|
6,102
|
6,088
|
|
FTE
per 1,000 residents
|
3.70
|
3.78
|
3.88
|
91. Further
information available in the appendices to this report includes:
· Appendix
1 – Auckland economic update
· Appendix
2 – Treasury report
· Appendix
3 – Professional services expenditure information
· Appendix
4 – LGOIMA information
· Appendix
5 – Customer service information
· Appendix
6 – Debtor information
Consideration
Local
board views and implications
92. Local boards
receive their own reporting for their respective areas. The local board
quarterly performance reports have been enhanced to improve the quality of
information presented to the boards in relation to the reporting on the LTP
performance measures. The aim here is to provide an early indication to the
local boards as to how performance is tracking against targeted levels.
Māori
impact statement
93. The content
and recommendations of this report have no particular benefit to or adverse
effect on Māori.
94. The
individual items in the highlights and achievements section may have benefits
or adverse effects on Māori that are specific to those initiatives, but as
this report is intended to provide a high-level summary that information is not
included.
Implementation
95. There are no
legal financial or resourcing implications arising from receipt of this report.
Attachments
|
No.
|
Title
|
Page
|
|
a⇩ 
|
Performance Report Appendices March 2017
|
29
|
Signatories
|
Author
|
David Gurney - Manager Corporate Performance and
Reporting
|
|
Authoriser
|
Kevin Ramsay – Acting Group Chief Financial
Officer
|
|
Finance and
Performance Committee
26 May 2017
|
|
Auckland Council Group quarterly financial report and
financial results to 31 March 2017
File No.: CP2017/03169
Purpose
1. To
provide the third quarter financial report and an overview of the financial
performance of the Auckland Council Group for the nine months to 31 March 2017.
Executive
summary
2. This
report is part of regular quarterly reporting to the Finance and Performance
Committee on the Auckland Council Group’s financial performance,
financial position and cash flows for the nine months to 31 March 2017.
3. Auckland
Council Group generated an operating surplus before gains and losses of
$773 million for the nine months to 31 March 2017, compared to the phased
budget of $646 million, due mainly to higher than expected vested assets.
4. The
net other gains of $338 million are primarily non-cash book entries, driven by
the increase in the fair value of financial instruments, resulting from rising
long-term interest rates. This continues to reverse recent trends of the
last two years of increasing net other losses as long-term interest rates fell.
5. The
Group net assets increased by $1,106 million, to $34,758 million, during the
nine months to 31 March 2017. The principal contributors being the
increase in receivables of $398 million as a result of recognising the
2016/2017 rates at the time of the issuance of the rating notices on 1 July
2016 and the net increase in property, plant and equipment and intangible
assets of $664 million.
6. The
capital expenditure of $1,086 million was funded by net operating cash inflow
of $613 million and the balance from borrowings
and working capital movements.
7. Overall
the financial performance is in line with the phased annual plan.
8. Auckland Council and the Council Controlled Organisations
will be reporting their individual performance to this Finance and Performance
Committee meeting in separate reports.
|
Recommendation/s
That the Finance and
Performance Committee:
a) receive
the Auckland Council Group third quarter financial report to 31 March 2017.
b) note
the Auckland Council Group for the nine months to 31 March 2017 generated an
operating surplus before gains and losses of $773 million and the increase in
net assets of $1,106 million to $34,758 million.
|
Comments
9. This
report discloses the financial performance, financial position and cash flows
of the Auckland Council Group for the nine months ended 31 March 2017.
10. Auckland
Council Group generated an operating surplus before gains and losses of
$773 million for the nine months to 31 March 2017, compared to the phased
budget of $646 million, due mainly to higher than expected vested assets.
11. Total
revenue excluding gains was $81 million higher than phased budget,
· primarily
due to higher:
o volume
of vested assets received than expected ($123 million);
o other
revenue ($11 million) including rental revenue increases arising from a larger
portfolio than budgeted and higher than anticipated dividend revenue;
o finance
revenue ($9 million) higher level of cash and cash equivalents at the end of
the third quarter compared to 31 June 2016;
· partly
offset by:
o lower
grants and subsidies ($36 million) driven by lower than expected capital grants
received which is attributable to capital project delays;
o reductions
in fees and user charges ($13 million) due to lower than budgeted parking and
fare revenue from Auckland Transport but higher than prior year. Lower than
budgeted port volumes has also contributed to this unfavourable variance; and,
o unfavourable
development and financial contribution revenue ($11 million) due to timing of
development projects.
12. Total
expenditure excluding other gains and losses is lower than budget by $46
million,
· primarily
due to lower:
o depreciation
and amortisation expenses resulting from timing of the capitalisation of
property, plant and equipment ($17 million);
o finance
costs ($14 million) due to timing of funding and lower average interest rates
for new loans resulting from repayment of the loan obtained from the Crown for
the Electric Multiple Unit;
o consultancy
and professional fees ($15 million) largely driven by timing delays for major
projects of Auckland Transport (e.g. Light Rail Transit, Security Fare and
Enforcement and various asset management projects). The changes in timing
for these projects are driven by changes in scope and/or ongoing study for
alternative solutions;
o than
expected repairs and maintenance ($7 million);
· partly
offset by higher than expected employee benefits ($7 million) mainly due to
redundancy costs and lower time recoveries from delays in capital projects.
13. The
net other gains of $338 million are primarily non-cash book entries, driven by
the increase in the fair value of financial instruments, resulting from rising
long-term interest rates. This reverses the trend of the last two years
of increasing net other losses as long term interest rates fell.
14. The
Group net assets increased by $1,106 million, to $34,758 million, during the nine
months to 31 March 2017,
· the principal contributors being the:
o increase
in receivables ($398 million) as a result of recognising the 2016/2017 rates at
the time of the issuance of the rating notices on 1 July 2016;
o net
increase in property, plant and equipment and intangible assets ($664 million);
o net
decrease in the fair value of derivative financial instruments ($359 million);
o increase
in cash and cash equivalents of $250 million from the new Euro bond deal in
January 2017;
· partly
offset by increase in borrowings of $694 million.
15. The
capital expenditure of $1,086 million was funded by net operating cash inflow
of $613 million and the balance from borrowings
and working capital movements.
16. Overall the
financial performance is in line with the phased annual plan.
Consideration
Local
board views and implications
17. This report
relates to the financial performance of the Auckland Council Group, which does
not include reporting at a local board level. Each local board receives
reports specific to their area. Accordingly the views of local boards
have not been sought.
Māori
impact statement
18. The report is
limited to financial performance of the Auckland Council Group and does not
affect the achievement or reporting of council’s contribution to Māori
outcomes. Council’s contributions to Māori outcomes are
reported in the annual report.
Implementation
19. There are no
implementation issues.
Attachments
|
No.
|
Title
|
Page
|
|
a⇩ 
|
Auckland Council quarterly financial report 31 March
2017
|
191
|
Signatories
|
Author
|
Francis Caetano - Group Financial Controller
|
|
Authorisers
|
Kevin Ramsay - General Manager Corporate Finance and
Property
Jazz Singh – Acting Group Chief Financial
Officer
|
