I hereby give notice that an ordinary meeting of the Finance and Performance Committee will be held on:
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Date:
Time:
Meeting Room:
Venue:
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Friday, 24
November 2017
9.30am
Reception
Lounge
Auckland Town Hall
301-305 Queen Street
Auckland
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Finance and Performance Committee
OPEN AGENDA
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MEMBERSHIP
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Chairperson
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Cr Ross Clow
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Deputy Chairperson
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Cr Desley Simpson, JP
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Members
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Cr Dr Cathy Casey
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Cr Daniel Newman, JP
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Deputy Mayor Bill Cashmore
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Cr Dick Quax
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Cr Fa’anana Efeso Collins
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Cr Greg Sayers
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Cr Linda Cooper, JP
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Cr Sharon Stewart, QSM
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Cr Chris Darby
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IMSB Chair David Taipari
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Cr Alf Filipaina
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Cr Sir John Walker, KNZM, CBE
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Cr Hon Christine Fletcher, QSO
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Cr Wayne Walker
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Mayor Hon Phil Goff, CNZM, JP
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Cr John Watson
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Cr Richard Hills
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IMSB Member Terrence Hohneck
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Cr Penny Hulse
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Cr Mike Lee
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(Quorum 11 members)
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Tam White
Senior Governance Advisor
21 November 2017
Contact Telephone: (09) 890 8156
Email: tam.white@aucklandcouncil.govt.nz
Website: www.aucklandcouncil.govt.nz
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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:
o
Local Board
agreements
o
Financial policy
related to the LTP and AP
o
Setting of rates
o
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
(a) 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.
(b) 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.
(c) 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.
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Finance and
Performance Committee
24 November
2017
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ITEM TABLE OF CONTENTS PAGE
1 Apologies 9
2 Declaration of
Interest 9
3 Confirmation
of Minutes 9
4 Petitions 9
5 Public Input 9
6 Local Board
Input 9
7 Extraordinary
Business 9
8 Notices of
Motion 10
9 City Rail Link
Presentation 11
10 Auckland Council
organisation performance report for the period 1 July 2017 to 30 September 2017 53
11 Auckland Council Group
quarterly financial report and financial results to 30 September 2017 97
12 Council-controlled
organisations first quarter report for 30 September 2017 111
13 Consideration of
Extraordinary Items
At the close of
the agenda, an apology from Cr C Casey had been received.
2 Declaration
of Interest
Members are
reminded of the need to be vigilant to stand aside from decision making when a
conflict arises between their role as a member and any private or other
external interest they might have.
3 Confirmation
of Minutes
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That the Finance and Performance Committee:
a)
confirm the ordinary minutes of its meeting,
held on Tuesday, 21 November 2017, including the
confidential section, as a true and correct record.
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4 Petitions
At the close of
the agenda no requests to present petitions had been received.
5 Public Input
Standing Order
7.7 provides for Public Input. Applications to speak must be made to the
Governance Advisor, in writing, no later than one (1) clear working day
prior to the meeting and must include the subject matter. The meeting
Chairperson has the discretion to decline any application that does not meet
the requirements of Standing Orders. A maximum of thirty (30) minutes
is allocated to the period for public input with five (5) minutes
speaking time for each speaker.
At the close of
the agenda no requests for public input had been received.
6 Local Board Input
Standing Order
6.2 provides for Local Board Input. The Chairperson (or nominee of that
Chairperson) is entitled to speak for up to five (5) minutes during this
time. The Chairperson of the Local Board (or nominee of that Chairperson)
shall wherever practical, give one (1) day’s notice of their wish
to speak. The meeting Chairperson has the discretion to decline any
application that does not meet the requirements of Standing Orders.
This right is
in addition to the right under Standing Order 6.1 to speak to matters on the
agenda.
At the close of
the agenda no requests for local board input had been received.
7 Extraordinary Business
Section 46A(7)
of the Local Government Official Information and Meetings Act 1987 (as amended)
states:
“An item
that is not on the agenda for a meeting may be dealt with at that meeting if-
(a) The local
authority by resolution so decides; and
(b) The presiding member
explains at the meeting, at a time when it is open to the public,-
(i) The
reason why the item is not on the agenda; and
(ii) The reason why the
discussion of the item cannot be delayed until a subsequent meeting.”
Section 46A(7A)
of the Local Government Official Information and Meetings Act 1987 (as amended)
states:
“Where an
item is not on the agenda for a meeting,-
(a) That item may be discussed
at that meeting if-
(i) That item is a minor
matter relating to the general business of the local authority; and
(ii) the presiding member
explains at the beginning of the meeting, at a time when it is open to the
public, that the item will be discussed at the meeting; but
(b) no resolution, decision or
recommendation may be made in respect of that item except to refer that item to
a subsequent meeting of the local authority for further discussion.”
8 Notices of Motion
There were no
notices of motion.
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Finance and
Performance Committee
24 November
2017
|
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City Rail
Link Presentation
File No.: CP2017/23724
Purpose
1. City
Rail Link Limited will provide an update on the progress of the City Rail Link
project.
Executive
summary
2. City
Rail Link Limited (CRLL) is a joint company owned by Auckland Council and the
Crown tasked with the responsibility to develop the City Rail Link (CRL)
project. The company was established on 1 July 2017, and assumed responsibility
for delivering the project from Auckland Transport.
3. Sir
Brian Roche (CRLL Board Chair) and Chris Meale (CRL Project Director) will
provide the committee with an update on the progress of the project and the
establishment of the CRL company.
4. CRLL
has provided the attached presentation to assist committee members (Attachment
A).
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Recommendations
That the Finance and
Performance Committee:
a) note
the presentation provided by City Rail Link Limited
b) thank
Sir Brian Roche and Chris Meale for their attendance.
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Consideration
Local
board views and implications
5. Local
boards have not been consulted on the content of this document.
Māori
impact statement
6. A
Maori impact assessment has not been undertaken for this report.
Attachments
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No.
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Title
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Page
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a⇩ 
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City Rail Link Limited Presentation
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13
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Signatories
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Authors
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Michael Quinn - Executive Officer
Edward Siddle - Principal Advisor
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Authorisers
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Stephen Town - Chief Executive
Matthew Walker – Acting Group Chief Financial Officer
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Finance and
Performance Committee
24 November
2017
|
|
|
Finance and
Performance Committee
24 November
2017
|
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Auckland Council organisation performance report for
the period 1 July 2017 to 30 September 2017
File No.: CP2017/22053
Purpose
1. The
report provides an overview of the Auckland Council organisation (the parent
entity) performance results for the period 1 July 2017 to 30 September 2017.
Executive
summary
2. This report tells the Auckland Council performance story by
themes. For each theme, the report lists highlights, outlines service
performance against Long Term Plan (LTP) performance measures, and reports
financial performance. Financial results are also provided at a consolidated
level.
Service
Performance
3. This
report includes results against LTP performance measures. Only some of the
total set of measures is reported on a quarterly frequency.
4. This
quarter, 37 measures are reported. 19 measures (49 per cent) reached their
target and 18 (46 per cent) did not.
5. Within
the themes subsections, the status of each performance measure is indicated
with the following icons:
· Ο indicates performance
measures that have achieved, or are better, than target
· Ο indicates performance
measures that have not achieved the target
6. For
performance measures showing a red status, an explanation of the performance is
provided.
Financial
Performance
7. This
report shows how the organisation is performing against the Annual Plan budget
and outlines any associated financial risks.
8. The
September 2017 quarter’s net operating result was $22 million better than
budget. This was mainly due to lower than budgeted interest rates being applied
across a lower than planned level of borrowing. Repairs and maintenance costs
were also under budget due to the timing of projects.
9. 16
per cent of the $608 million capital expenditure budget was spent over the
September quarter, with $513 million budget remaining for the rest of the
financial year. The current forecast is that year end capital expenditure will
be $503 million.
10. For Treasury
management, the total closing debt of $7.6 billion was under budget.
11. Appendices to
this report include information on professional services expenditure, LGOIMAs
and customer services. Group financial results and CCO performance results are
separate agenda papers.
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Recommendation/s
That the Finance and
Performance Committee:
a) receive
the performance report for the Auckland Council organisation for the period
of 1 July 2017 to 30 September 2017.
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Comments
12. The following
subsections outline performance by each theme used in the Annual Report. For
each theme, highlights, financial performance and service performance are
summarised. The themes are:
· Auckland
Development
· Environmental
Management and Regulation
· Parks
Community and Lifestyle
· Governance
and support.
13. Following the
subsections on themes, an additional subsection provides a consolidated
commentary on financial performance.
Auckland
Development theme
Highlights
14. Highlights
for the Auckland Development theme include:
· For
the Unitary Plan, 32 of the 49 High Court appeals are now resolved and 38 of
the 67 Environment Court appeals are now resolved.
· In
August, the Mayor Phil Goff and Waitemata Local Board Chair Pippa Coom opened
the newly refurbished Ellen Melville Centre and upgraded Freyberg Place on High
Street. This project was supported by the Waitemata Local Board and the
Auckland City Centre Advisory Board.
· In
September, the Planning Committee endorsed the proposed monitoring framework
for the refreshed Auckland Plan.
· Also
in September, the first MIT programme - Level 2 National Certificate in
Horticulture - started at the Takanini Sikh Temple attracting a very diverse
group of students (Indian, Maori, Tongan, Filipino and NZ European), aged from
16 up to 70 years. Full funding has been approved for the programme to continue
in 2018.
Financial Performance
|
$million
|
YTD Actual
|
YTD Revised
Budget
|
YTD Variance
|
FY
Annual Plan
|
|
Net operating expenditure
|
39
|
41
|
2
|
4%
|
138
|
|
Capital expenditure
|
18
|
21
|
3
|
14%
|
141
|
15. Net
operating expenditure for the Auckland Development theme is $2 million under
budget due to regional planning staff vacancies resulting from restructuring,
and less professional services expenses arising from slower than expected work
programmes.
16. Capital
expenditure is $3 million below budget, due mainly to the timing of the Built
Heritage Protection Fund spend. The Strategic Properties Development Fund
expenditure is below budget due to the Papatoetoe Mall redevelopment timing.
Two projects are ahead of plan offsetting underspends – the Massey North
Open Spaces project, and the Totara Stormwater Ponds in Westgate.
Service Performance
17. The
following table summarises the performance against the LTP measures relating to
Auckland Development that were able to be measured this quarter.
|
Auckland
Development
|
FY18
|
FY17
|
|
Performance
measures
|
Quarter 1 result
|
Quarter 1 target
|
Status
|
Actual Result
|
|
Percentage
of Unitary and Area Plan changes and Notices of Requirement processed within
statutory timeframes
|
100%
|
100%
|
Ο
|
100%
|
Environmental
Management and Regulation theme
Highlights
18. Highlights
for the Environmental Management and Regulation theme include:
· The
Regulatory Committee approved the development of a Freedom Camping Act bylaw to
manage the negative impacts of freedom camping on the community.
· Ecological
restoration is now underway at Te Pūkaki Tapu o Poutūkeka
(“Pukaki Crater”), Mangere. The site is co-managed by Auckland
Council and Te Akitai-Waiohua. The site is recognised as an Outstanding Natural
Feature and a Significant Ecological Area and is also wāhi tapu - owing to
the presence of a sacred urupa (burial ground) and other known heritage
features (e.g. heritage plants, archaeological features). The Mangere-Otahuhu
Local Board is supporting the project.
· The
roll-out of changes in waste management services continues with Manukau
residents moving from bags to bins and West Auckland moving to “pay as
you throw” (PAYT) bins where residents only pay when they need their bin
collected.
· The
new Regulatory Services structure is in place. The new structure will make
things easier for customers through new ways of working and using technology to
improve efficiency.
· The
Sustainable Schools Team worked with Manukau Beautification Charitable Trust to
support Tiaki, an event where students from South Auckland schools develop
innovative environmental solutions for their community. Nine schools took part
and the Sustainable Schools and Biodiversity team mentored two schools in
freshwater projects.
· Work
continued with Ministry for Primary Industries to prepare for Myrtle
Rust’s likely arrival in Auckland. This included hosting Dr Ruth Bone
(Kew Gardens) for the national seedbanking initiative.
· Tunnel
construction for the Artillery Tunnel stormwater project was completed.
· Physical
works for the Sunnynook Park dry pond upgrade have begun, with completion
expected in July 2018.
· Physical
works for the Chelsea Estate stormwater pipe renewal started in late August
2017, with construction expected to take 16 months.
· Auckland
Council and Watercare are working together on the Western Isthmus Water Quality
Improvement Project. A joint approach to improve water quality, reduce
wet weather overflows and enable growth is being developed as part of the 2018-2028
LTP. The programme was endorsed by the Environment and Community Committee on
17 October. Community and mana whenua discussions on the project have
commenced.
· Work
on the failed culvert in New Lynn continued with the renewal of the original
culvert to provide increased stormwater capacity and substantially minimise
risk. Installation of the new high capacity culvert has begun and is
expected to take six months.
· The
Brylee Reserve Wetland Project was awarded the runner up prize at the Water NZ
Annual Conference & Expo for Project Award 2017. This project involved the
transformation of an open stormwater stream and a 9,000m2 soggy
grass reserve into appealing natural stormwater treatment wetlands with a
160m-long boardwalk and new reserve walkways. The wetlands treat stormwater
from a 32 ha catchment that includes runoff from the nearby SH1 motorway.
· Auckland
has been shortlisted as a finalist in the 2017 C40 Cities awards – under
the Cities4ZeroWaste category. The awards provide global recognition for cities
demonstrating leadership in climate action.
· The
Three Kings Salvage and Recovery Project and the Resource Recovery Network are
two out of three finalists in the Best Project or Initiative category of the
WasteMINZ Awards for Excellence. The winner will be announced in November.
Financial Performance
|
$million
|
YTD Actual
|
YTD Revised
Budget
|
YTD Variance
|
FY
Annual Plan
|
|
Net operating expenditure
|
75
|
70
|
(4)
|
(6%)
|
290
|
|
Capital Expenditure
|
33
|
35
|
2
|
6%
|
117
|
19. Net operating expenditure
for the Environmental Management and Regulation theme is higher than budget by
$4 million. This is mainly due to operating revenue being lower than budget
reflecting a drop in building and resource consent volumes. This is partly offset
by lower operating expenditure due to staff vacancies as a result of
restructuring, lower depreciation than anticipated and lower outsourced works
and services costs due to lower consenting volumes.
20. Capital
expenditure is $2 million behind budget, mainly due to the timing of Healthy
Waters projects on Grove Road and the Artillery Drive tunnel to inlet project.
The overall underspend is offset by earlier than planned expenditure on the
Waste Management project for recycle and refuse bins progressing ahead of plan.
Service Performance
21. The
following table summarises the performance against the LTP measures relating to
Building and Resource Consents that were able to be measured this quarter.
|
Building and
Resource Consents
|
FY18
|
FY17
|
|
Performance
measures
|
Quarter 1 result
|
Quarter 1 target
|
Status
|
Actual Result
|
|
Percentage
of customers satisfied with the overall quality of building control service
delivery
|
55%
|
65%
|
Ο
|
55%
|
|
The complexity of processes and
quality of information are reasons driving dissatisfaction. Consenting
Made Easy, the introduction of new customer friendly technology, and the
newly introduced Regulatory Services structure, will improve customer
service.
|
|
Percentage
of Building Consent applications processed within 20 working days
|
89%
|
100%
|
Ο
|
80%
|
|
Processing times have been impacted
by the introduction of new systems and processes, and the recent
restructure.
|
|
Percentage
of customers satisfied with the overall quality of resource consents service
delivery
|
50%
|
55%
|
Ο
|
58%
|
|
As with Building Consents, for
Resource Consents the complexity of processes and quality of information are
reasons driving dissatisfaction. Consenting Made Easy, the introduction
of new customer friendly technology, and the newly introduced Regulatory
Services structure, will improve customer service.
|
|
Percentage of
non-notified Resource Consent applications processed within 20 working days
|
74%
|
100%
|
Ο
|
78%
|
|
As with Building Consents,
processing times have been impacted by the introduction of new systems and
processes, and the recent restructure.
|
|
Percentage of
notified Resource Consent applications processed within 70 working days.
|
74%
|
100%
|
Ο
|
67%
|
|
Processing times have been impacted
by the introduction of new systems and processes, and the recent
restructure.
|
22. Issued
building consent volumes are lower than that budgeted, and are 4.5% lower than
last year (5183 consents issued for the first quarter of 2017/18 compared with
5427 for the first quarter of 2016/17). This is having an impact on revenue,
which at $23.7 million is $3.7 million below budget. There are significant
staff vacancies (in September there were 563 FTEs against an approved FTE level
of 663) following the recent restructure and the difficulties being able to
employ technical staff. Whilst this means there is a reduced staff cost ($0.9
million underspent against the $13.2 million budget), and with reduced
outsourced works costs ($1.7 million underspent against the $3.8 million
budget) these savings are not enough to offset the fall in revenue.
Therefore, the operating surplus for Building Consents as at 30 September 2017
was $9.0 million, which is $2.0 million lower than budget. At year end, the
current forecast operating surplus is $40.0 million, which is $2.4 million
unfavourable to year end revised budget.
23. Issued
resource consent volumes are also lower than budgeted, being 16% lower than
last year (7391 consents issued for the first quarter of 2017/18 compared with
8823 for the first quarter of 2016/17). This is having an impact on revenue,
which at $15.9 million is $2.6 million under budget. There are significant
staff vacancies (in September there were 478 FTEs against an approved FTE level
of 641) with many of these vacancies being key technical roles. Despite the
lower volumes, the vacancies in technical roles means that reliance in being
placed on professional services ($0.2 million unplanned spending) and
outsourced services (which is $3.2m overspent compared to the $2.3 million
budget). The operating surplus as at 30 September 2017 for Resource Consents is
$0.2 million, which is $4.6 million lower than budget. The year end
forecast is an operating loss of $8.0 million, which is $10.2 million
unfavourable to year end revised budget.
24. The
following table summarises the performance against the LTP measures relating to
Licensing and Compliance Services that were able to be measured this quarter.
|
Licensing and
Compliance Services
|
FY18
|
FY17
|
|
Performance
measures
|
Quarter 1 result
|
Quarter 1 target
|
Status
|
Actual Result
|
|
Percentage
of urgent animal management complaints such as dog attacks responded to
within one hour
|
100%
|
95%
|
Ο
|
99.5%
|
|
Percentage
of known dogs that are registered
|
84%
|
100%
|
Ο
|
88%
|
|
The dog database
requires ongoing maintenance to update records for dogs who have died or
moved out of the area.
|
|
Percentage
of noise complaints responded to within 30 minutes for urban areas or 60
minutes for rural areas
|
65%
|
80%
|
Ο
|
77%
|
|
Contractors
in the North and West are not meeting their contracted service KPIs. In order
to address the issue we have applied a further 3 per cent reduction to
monthly invoicing to sanction for repeated poor performance. Contracts expire
in mid-2018 and the current performance of contractors will be taken into
account when renewing contracts.
|
|
Percentage of complainants
satisfied with noise control services
|
60%
|
52%
|
Ο
|
59%
|
|
Percentage
of registered food premises graded annually
|
85%
|
95%
|
Ο
|
95%
|
|
Pressures
remain on the licensing area to meet the workload required under the Food Act
2016. The current measures relate to food businesses inspected in terms of
Food Hygiene Regulations.
|
|
Percentage
of customers satisfied with the food and hygiene licensing service
|
83%
|
70%
|
Ο
|
82%
|
|
Percentage
of D/E graded food premises re-inspected within one month
|
90%
|
95%
|
Ο
|
98%
|
|
Pressures
remain on the licensing area to meet the workload required under the Food Act
2016. The current measures relate to food businesses inspected in terms of
Food Hygiene Regulations
|
|
Percentage
of high-risk alcohol premises inspected annually
|
80%
|
100%
|
Ο
|
100%
|
|
Inspections
are scheduled across regular evening shifts across the year, with 100% of
premises to be inspected by year end.
|
|
Percentage
of customers satisfied with the alcohol licensing service
|
82%
|
68%
|
Ο
|
83%
|
|
Percentage
of bylaw-related requests for service (e.g. illegal signs, public nuisance,
street trading) responded to within three days
|
93%
|
83%
|
Ο
|
80%
|
|
Percentage
of requests by iwi that are relevant and within their area of interest that
are responded to within three statutory days
|
100%
|
100%
|
Ο
|
100%
|
25. The
following table summarises the performance against the LTP measures relating to
Solid Waste and Environmental Services that were able to be measured this
quarter.
|
Solid Waste and
Environmental Services
|
FY18
|
FY17
|
|
Performance
measures
|
Quarter 1 result
|
Quarter 1 target
|
Status
|
Actual Result
|
|
Domestic kerbside
refuse per capita per annum
|
142kg
|
110kg
|
Ο
|
144kg
|
|
Domestic rubbish
sent to landfills has significantly reduced. However the target will
not be met until food waste initiatives are implemented from 2020 (given food
waste comprises 45% of domestic waste).
|
|
Total number of
Resource Recovery Facilities
|
4
|
4
|
Ο
|
4
|
|
Percentage of the
council-controlled closed landfill discharge consents achieving Category 1 or
2 compliance rating
|
100%
|
98%
|
Ο
|
100%
|
|
Percentage of
threatened species under active management
|
25%
|
34%
|
Ο
|
34%
|
|
A review of the
species programme has been conducted by Council officers.127 threatened
species have been identified in the Auckland region requiring management. Of
these, 32 are under active management.
|
|
Percentage of
indigenous ecosystems under active management
|
68%
|
68%
|
Ο
|
68%
|
|
Number of hectares
under community pest control
|
124,000
|
90,000
|
Ο
|
124,000
|
|
Percentage of land
area with less the 5% residual trap catch for possums
|
38%
|
52%
|
Ο
|
52%
|
|
The methods for reporting this
measure have been reviewed.
To date the measure has been based
on an inaccurate assumption that the landscape scale pest control work
(largely on rural peninsulas) has been achieving the required possum density
numbers over the whole control areas, whereas this has only likely been achieved
in a proportion of the total control area.
Based on this review, the pecentage
of land area achieving the required densities has dropped to 38 per cent.
|
|
Proportion of
kauri areas on Auckland Council land that have active management or exclusion
measures in place for kauri dieback disease
|
63%
|
70%
|
Ο
|
68%
|
|
The area that Auckland Council
manages with kauri is 51,750 ha which includes Waitakere and Hunua regional
parks. Management occurs on 35,200 ha and includes exclusion areas, track
closure and hygiene stations with associated signage.
The target for this measure has
grown from 60 per cent in 2016-2017 to 70 per cent in 2017-2018, but
resourcing has not been enough to keep expanding the area protected without
compromising the quality of protection in the areas already under management.
This is apparent in the Waitakere Ranges, where our latest survey shows that
Kauri dieback continues to spread despite protection measures. There are many
drivers for this, but significant investment is required to upgrade tracks to
prevent the spread from mud, better public compliance with track closures and
protection areas and improved hygiene stations to increase the effectiveness
and likelihood of the public using them.
|
|
Proportion of schools
participating in sustainability education programmes
|
47%
|
58%
|
Ο
|
73%
|
|
There has been a change to the
service model for schools working with the Sustainable Schools programme.
There is a reduction in the number of schools through our programmes but an
increase in the engagement through outreach projects and local board work.
The team is on track to achieve the final target of 58% by the end of the
financial year.
|
26. The
following table summarises the performance against the LTP measures relating to
Stormwater Management that were able to be measured this quarter.
|
Stormwater
Management
|
FY18
|
FY17
|
|
Performance
measures
|
Quarter 1 result
|
Quarter 1 target
|
Status
|
Actual Result
|
|
Stormwater
manholes that pop open in flood events are made safe within two hours
|
100%
|
100%
|
Ο
|
66%
|
|
Auckland Council stormwater compliance with resource consents for
discharge from the stormwater system, measured by the number of:
a) abatement notices, and
b) infringement notices, and
c) enforcement notices, and
d) successful prosecutions received in relation
to those resource consents
|
0
|
0
|
Ο
|
0
|
|
The
number of complaints received about the performance of the stormwater system
per 1000 properties connected to Auckland Council’s system
|
0.1
|
3.0
|
Ο
|
1.01
|
Parks,
Community and Lifestyle theme
Highlights
27. Highlights
for the Parks, Community and Lifestyle theme include:
· Various
activities are supporting the Mayor’s initiative to plant one million
trees over three years including:
o Supporting
Sustainable Coastlines, Forest and Bird Motu Manawa, Community Parks working
alongside the Riverhead Scout Group and Kirsten School to plant 3000 trees.
o The
Southern Regional Parks team planting 38,000 trees at Tapakanga Regional Park
in addition to their annual planting target of 30,000 trees.
· A
report to the Environment and Community Committee has presented options to
expand revenue streams for sport facility investment. This report will inform
the development of the Sport Facilities Investment Plan
· Local
Board activities include an indicative business case for investment in aquatic,
recreation and community facilities in Whau.
· Active
Recreation has launched the first regional membership campaign based on the new
customer promise of “Get Active Your Way”. The campaign, entitled
“Start it, move it, love it”, has a new community-focused look and
feel and features our own customers and staff enjoying the benefits of being
active at our pools and leisure centres. The campaign is the first execution of
a refreshed Active Recreation brand and is aligned to a suite of service
improvements, including personalised customer engagement and new regional
membership options.
· The
Auckland Heritage Festival gets underway in late September with over 170
planned events.
· The
new Auckland Libraries website went live at the end of August. The new site is
a key achievement in the redevelopment of the council’s websites and
enables us to deliver on Te Kauroa, our 10-year strategy for Libraries.
· Community
Facilities completed the renewal of walkways and tracks on Deborah Reserve at
Narrow Neck Beach, exterior cladding and refurbishment of Cambria House in
Otara-Papatoetoe and refurbishment of the Awhitu Regional Park Brook Homestead
in Rodney.
· The
Auckland International Cultural festival was a finalist in the NZ Marketing
Awards in the Best Marketing on a Shoe String budget category.
Financial Performance
|
$million
|
YTD Actual
|
YTD Revised
Budget
|
YTD Variance
|
FY
Annual Plan
|
|
Net operating expenditure
|
120
|
128
|
8
|
6%
|
497
|
|
Capital expenditure
|
30
|
50
|
20
|
40%
|
279
|
28. Net
operational expenditure for the Parks, Community and Lifestyle theme is $8
million below budget due to the slow recruitment of staff to fill vacancies,
and delays in work programmes. Depreciation has also decreased due to the
timing of asset capitalisation.
29. Capital
expenditure is $20 million underspent as at 30 September 2017. Parks asset
renewals, parks and sports development programmes, Locally Driven Initiatives,
park land acquisition, and the Westgate multi-purpose facilities are projects
that are running behind plan, driving the underspend. The forecast is that the
capital expenditure budget will be spent by the year end.
Service Performance
30. The
following table summarises the performance against the LTP measures relating to
Parks, Community and Lifestyle that were able to be measured this quarter.
|
Parks,
community and lifestyle
|
FY18
|
FY17
|
|
Performance
measures
|
Quarter 1 result
|
Quarter 1 target
|
Status
|
Actual Result
|
|
Total
permitted events taking place across the city
|
133
|
1100
|
Ο
|
1610
|
|
Permitting requirements for events
were relaxed in FY16 so that permits were only required where there was a
clear reason and benefit for doing so. This has reduced administrative costs
and effort for event organisers but it means that the number of events is
lower than the LTP target. This quarterly result is similar to previous
periods (120 in FY16 Q1 and 118 in FY17 Q1). Most events occur during the
warmer months of the year and our full year outlook is similar to what was
achieved last year.
|
|
Percentage
of community facilities bookings used for health and wellbeing related
activity
|
22%
|
20%
|
Ο
|
23%
|
|
Number of
visits to Auckland Libraries website
|
1.69m
|
1.83m
|
Ο
|
6.71m
|
|
The new Library website was
launched in September. Customers are interacting more efficiently with the
site. The number of visitors has decreased but the number of users who
actively use the website by clicking through links away from the home page
has increased.
|
|
Number of library
items borrowed
|
3.99m
|
3.75m
|
Ο
|
15.34m
|
|
Use of
libraries as digital community hubs: number of internet sessions per capita
(PC and WIFI)
|
1.23m
|
0.5m
|
Ο
|
4.61m
|
|
Percentage of
items borrowed that are e-collections (e.g. eBooks, Audiobooks)
|
12%
|
11.25%
|
Ο
|
11.5%
|
|
Percentage of city
park service
requests completed on time
|
72%
|
90%
|
Ο
|
88.8%
|
|
The result to date has been
influenced by migration to the new RUA contract for City Parks, an internal
restructure and the implementation of new IT systems. Results are expected to
improve as systems and processes are embedded.
|
Governance
and Support theme
Highlights
31. Highlights
for the Governance and Support theme include:
· Usage
of OurAuckland website continues to grow with a 27 per cent increase in website
visits year on year for the month of August. We also reached 65,000 likes on
Facebook demonstrating a 60 per cent increase year on year, and 95,000
followers on Twitter.
· A
campaign to recruit volunteers for Auckland Emergency Management was
successfully delivered through various platforms. We ran a three-week campaign
with a series of banner stories on Kotahi featuring employees involved in
emergency management. These messages were amplified through our digital
screens, a dedicated COO video update filmed in the bunker at Bledisloe,
messages in Turama and the CEO Update. They had a goal to get 120 people along
to information workshops, and as a result, over 250 employees signed up to
attend a session and learn more.
· In
September, “Our Brand” a self-servicing online hub, was launched.
The hub features our brand proposition, logos, full brand guidelines and
galleries of council-branded work. By correctly and consistency branding our
services we have the opportunity to show Aucklanders how we provide value for
money.
· The
Auckland Heritage Festival 2017 website was launched with enhanced search
functions which has already registered over 10.5 per cent increase in website
views.
· The
Auckland Conversations refreshed website was launched in September with a live
stream of Major Phil Goff’s speech on his vision for Auckland at the
Resource Management Law Conference.
Financial Performance
|
$million
|
YTD Actual
|
YTD Revised
Budget
|
YTD Variance
|
FY
Annual
Plan
|
|
Net operational expenditure
|
77
|
94
|
17
|
47%
|
181
|
|
Capital expenditure
|
14
|
18
|
5
|
27%
|
65
|
32. Net
operational expenditure is $17 million lower than budget due to lower interest
costs, and lower repairs and maintenance costs due to slower than planned
progress of corporate property projects.
33. Capital
expenditure is $5m under the YTD September budget. This is mainly due to
delays in ICT projects, including the Urban Aerial Photography which was
delayed by bad weather, and the Cemeteries system business case being behind
schedule, and the ICT Lifecycle Management project where spending on new
hardware and software will be done later in the year.
Service Performance
34. The
following table summarises the performance against the LTP measures relating to
Governance and Support theme that were able to be measured this quarter.
|
Governance and
Support
|
FY18
|
FY17
|
|
Performance
measures
|
Quarter 1 result
|
Quarter 1 target
|
Status
|
Actual Result
|
|
Number of
complaints regarding council demographic processes upheld by the Auditor
General or Ombudsman
|
0
|
0
|
Ο
|
0
|
Financial
Performance
35. This section
summarises financial results for the quarter ended 30 September 2017 for the
Parent.
|
Parent
|
Actual
|
Revised Budget
|
Variance
|
Annual Plan
|
|
$Millions
|
YTD
|
YTD
|
YTD
|
YTD
|
FY
|
|
Operating
revenue
|
|
|
|
|
|
|
Fees and user charges revenue
|
74,453
|
81,517
|
(7,064)
|
(9%)
|
267,315
|
|
Grants and subsidy revenue
|
3,575
|
3,788
|
(213)
|
(6%)
|
20,409
|
|
Finance revenue
|
33,377
|
34,636
|
(1,259)
|
(4%)
|
108,545
|
|
Property rental revenue
|
8,409
|
8,168
|
241
|
3%
|
35,199
|
|
Dividend income received
|
968
|
2,728
|
(1,760)
|
(65%)
|
94,228
|
|
Other operating revenue
|
8,875
|
9,579
|
(704)
|
(7%)
|
35,009
|
|
Total
Operating revenue
|
129,657
|
140,416
|
(10,759)
|
(8%)
|
560,705
|
|
|
|
|
|
|
|
|
Operating expenditure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Staff
|
128,608
|
129,828
|
1,220
|
1%
|
525,978
|
|
Depreciation and amortisation
|
63,008
|
67,194
|
4,186
|
6%
|
263,831
|
|
Inter-entity funding
|
90,942
|
92,385
|
1,443
|
2%
|
365,555
|
|
Grants, contributions, sponsorship
|
82,565
|
82,512
|
(53)
|
(0%)
|
120,987
|
|
Finance expenditure
|
99,310
|
106,428
|
7,118
|
7%
|
425,713
|
|
Professional services
|
14,786
|
16,555
|
1,769
|
11%
|
67,557
|
|
Repairs and maintenance
|
24,432
|
30,525
|
6,093
|
20%
|
119,418
|
|
Outsourced works and services
|
35,155
|
37,118
|
1,963
|
5%
|
156,797
|
|
Other expenditure on activities
|
31,677
|
34,073
|
2,396
|
7%
|
137,375
|
|
Total
Operating expenditure
|
570,483
|
596,618
|
26,135
|
4%
|
2,183,211
|
|
|
|
|
|
|
|
|
Net operating
expenditure/(revenue)
|
440,828
|
456,202
|
15,376
|
3%
|
1,622,505
|
|
|
|
|
|
|
|
|
Rates revenue
|
1,701,797
|
1,702,770
|
(973)
|
(0%)
|
1,721,647
|
|
|
|
|
|
|
|
|
Net operating
surplus/(deficit)
|
1,260,969
|
1,246,568
|
14,403
|
1%
|
99,142
|
|
|
|
|
|
|
|
|
Non-operating
expenditure
|
118,610
|
251,088
|
132,478
|
53%
|
773,508
|
|
|
|
|
|
|
|
|
Non-operating
revenue
|
84,307
|
738,089
|
(653,782)
|
(89%)
|
948,345
|
|
|
|
|
|
|
|
|
Other gains
and losses
|
(45,670)
|
0
|
(45,670)
|
|
0
|
|
|
|
|
|
|
|
|
Net
non-operating surplus/(deficit)
|
(79,973)
|
487,001
|
(566,974)
|
(116%)
|
174,837
|
|
|
|
|
|
|
|
|
Net surplus /
(deficit)
|
1,180,996
|
1,733,569
|
(552,571)
|
(32%)
|
273,979
|
36. Operating
revenue was $130 million, $11 million below the year-to-date budget. Fees
and user charges revenue is $7 million below budget due to lower volumes of
building and resource consent applications.
37. Operating
expenditure was $570 million, $26 million less than the year-to-date budget.
Major items which are under budget include:
· Staff
costs because of vacancies resulting from restructures in Community Services
and Regulatory Services.
· Repair
and maintenance costs due to the slower timing of work programmes.
· Finance
costs due to lower than expected net interest costs, and a lower opening debt
balance and lower than planned levels of borrowing.
· Depreciation
and amortisation due to the timing and completion of capital work programmes.
38. The
net operating surplus is $1261 million, $14 million higher than the
year-to-date budget. This is driven predominantly by lower net finance
expenditure.
39. The
net non-operating deficit is $80 million, $566 million less than the
year-to-date budget due to variances arising from City Rail Link transactions
recognised in the Annual Budget 2017/2018. With the execution of the contracts,
these City Rail Link transactions were recognised in the balance sheet. Details
are summarised below:
|
Transaction
|
Variance
|
Annual Budget
2017/2018 presentation
|
Actual
presentation in the “Balance Sheet”
|
|
Transfer of City
Rail Link assets from Auckland Transport to Auckland Council
|
($439 million)
|
Non-operating
revenue under “vested asset revenue”
|
Reduction against
Investment in Auckland Transport
|
|
Transfer of City
Rail Link assets from Auckland Council to City Rail Link Limited
|
($229 million)
|
Non-operating
revenue under “grants and subsidies”
|
Reduction against
the Investment in City Rail Link Limited which relates to 50% of Crown’s
share
|
|
2017/2018 funding
to City Rail Link Limited
|
$78 million
|
Non-operating
expenses under “grants and contributions”
|
Presented as
“Investment in City Rail Link Limited”
|
40. The
net surplus is $1181 million, which is $553 million less than the year-to-date
budget.
Capital expenditure
41. For the year
to date September 2017 capital expenditure was $95 million, which was 16 per
cent of the full programme of $608 million approved for the year. The
full year capital expenditure is forecast to be $503 million.
42. Capital
projects that have been completed over the quarter were:
· Cox’s
Bay Reserve playground upgrade and play renewals in Helensville and Rodney
· Paving
renewals (including heritage paving) at Lloyd Elsemore and across Franklin and
Howick local board areas
· A
new car park, playspace and plaza at Birkdale Road Park Reserve
· The
renewal of the New Lynn original culvert, which has increased stormwater
capacity
· Britomart
Stage 3 surveys and stormwater investigations as part of the
Downtown/Waterfront programme
· The
final stage of the Artillery Drive Tunnel (currently being completed) with the
installation of the tunnel inlet at McLennan Park Ponds. This will alleviate
flooding in low-lying areas of Takanini and support the development of 3000
homes.
Balance sheet
|
$million
|
Actual as at
September 2017
|
Projected per Annual Plan
2018
|
Actual audited
June 2017
|
|
Assets
|
|
|
|
|
Property, plant and equipment
|
13,736
|
14,237
|
13,659
|
|
Other assets and investments
|
25,258
|
24,806
|
24,495
|
|
Less liabilities
|
|
|
|
|
Borrowings
|
7,572
|
7,827
|
7,704
|
|
Other liabilities
|
1,644
|
1,874
|
1,853
|
|
Net assets (ratepayers’ equity)
|
29,777
|
29,342
|
28,597
|
43. The increase in property, plant and equipment since June 2017 is due
to a high level of work in progress for Stormwater and Parks vested assets and
various capital projects. Other assets and investments is higher than June
2017, mainly due to the increase in net rates receivables of $1,116 million as
a result of recognizing upfront the 2017/2018 rates at the time of the
issuance of the rating notices partially offset by the sale of the remaining
Diversified Financial Assets portfolio of $222 million.
44. Total
borrowing at 30 September 2017 was $7.6 billion, lower than Annual Plan
projections.
Treasury management
45. 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.
46. The
September cost of funds was 5.24 per cent which is below the budgeted cost of
funds of 5.30 per cent but above the 7 year benchmark. The average duration of
our debt portfolio at September was 6.23 years.
47. The
Diversified Financial Assets portfolio was liquidated in September (as approved
by the Governing Body).
Employee numbers
48. Employee
numbers are expressed in full-time equivalent (FTE) terms - which means everyone
is converted to the equivalent of forty hours per week.
49. The table
below shows the trend of both FTE and FTE per 1,000 residents in Auckland for
the council parent organisation. Overall the FTE number has decreased by 148 in
this quarter. This decrease is temporary due to vacancies that need to be
filled following the restructure in Regulatory Services. The FTE number is
expected to increase as vacancies are filled to maintain the service level.
When compared with the growing population of Auckland, the FTE is trending
favourably to a lower rate.
|
|
Q1
FY18
|
Q4
FY17
|
Q4
FY16
|
|
Number of full-time equivalents
(FTE)
|
5,943
|
6,091
|
6,102
|
|
FTE per 1,000 residents
|
3.59
|
3.70
|
3.78
|
Consideration
Local
board views and implications
50. 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 to track LTP measures. These changes will give local boards more
visibility, earlier, about how performance is tracking against targets.
Māori
impact statement
51. This
report’s high-level content and recommendations have no particular
benefit or adverse effect on Māori. Individual items in the
highlights and achievements section may have benefits or adverse effects on
Māori that are specific to those initiatives.
Implementation
52. There are no
legal financial or resourcing implications arising from receipt of this report.
Attachments
|
No.
|
Title
|
Page
|
|
a⇩
|
Q1 FY18 Appendices 1-8
|
69
|
Signatories
|
Author
|
David Gurney - Manager Corporate Performance &
Reporting
|
|
Authorisers
|
Kevin Ramsay - General Manager Corporate Finance and
Property
Matthew Walker - Acting Group Chief Financial Officer
|
|
Finance and
Performance Committee
24 November
2017
|
|
|
Finance and
Performance Committee
24 November
2017
|
|
|
Finance and
Performance Committee
24 November
2017
|
|
|
Finance and
Performance Committee
24 November
2017
|
|
|
Finance and
Performance Committee
24 November 2017
|
|
|
Finance and
Performance Committee
24 November
2017
|
|
|
Finance and
Performance Committee
24 November
2017
|
|
|
Finance and
Performance Committee
24 November
2017
|
|
|
Finance and
Performance Committee
24 November
2017
|
|
Auckland Council Group quarterly financial report and
financial results to 30 September 2017
File No.: CP2017/03176
Purpose
1. This
report informs Councillors of the financial performance of the Auckland Council
Group for the three months to 30 September 2017 as set out in the attached
unaudited quarterly financial report.
Executive
summary
2. This
report is part of the regular quarterly reporting to the Finance and
Performance Committee on the Auckland Council Group’s financial
performance, financial position and cash flows for the three months to 30
September 2017.
3. Auckland
Council Group generated an operating surplus before gains and losses of $1,376
million for the three months to 30 September 2017, compared to the phased
budget of $1,539 million.
4. The
operating surplus before gains and losses unfavourable variance of $163 million
is largely driven by the accounting treatment of the City Rail Link of $229
million partly offset by the favourable variance on vested asset revenue of $77
million.
5. When
the Annual Budget 2017/18 was approved, the receivable due by the Crown for the
transfer of City Rail Link assets was shown as a grant. Subsequently the
receivable from the Crown for the transfer of the City Rail Link assets has
been recognised against “Property, plant and equipment” in the
statement of financial position.
6. The
accounting treatment of Auckland Council’s investment in City Rail Link
Limited effective 1 July 2017 is still being agreed with Audit New Zealand.
7. The
net other losses of $53 million are primarily non-cash book entries, driven by
the increase in the fair value of the interest rate swaps, resulting from lower
long-term interest rates.
8. Overall
financial performance, net of City Rail Link accounting treatment variance, is
in line with phased budget.
9. The
Group net assets increased by $1,314 million, to $37,090 million, during the
three months 30 September 2017.
· The
principal contributors being the:
o increase
in net rates receivables of $1,116 million as a result of recognising upfront
the 2017/18 rates at the time of the issuance of the rating notices.
o investment
in property, plant and equipment, net of depreciation, of $246 million.
o reduction
in payables and provision of approximately $134 million.
o increase
in derivative financial assets and other receivables of $85 million.
· partly
offset by:
o sale
of the remaining Diversified Financial Assets Portfolio of $222 million.
o minor
increase in borrowings, net of cash and cash equivalents of $48 million.
10. During the
three months the Group has invested $430 million cash to expand and renew
community and infrastructure assets. These were funded by operating cash
flows and the sale of the remaining balance of the Diversified Financial Assets
Portfolio.
11. The Auckland
Council Parent and 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) note
the Auckland Council Group for the three months to 30 September 2017
generated an operating surplus, before gains and losses, of $1,376 million
and an increase in net assets of $1,314 million to $37,090 million.
b) note
that overall the financial performance net of the City Rail Link budget
accounting treatment difference, is in line with the phased annual plan.
|
Background
12. This report
discloses the financial performance, financial position and cash flows of the
Auckland Council Group for the three months ended 30 September 2017. This
paper has been prepared to inform Councillors and to enable them to ask
questions of officers at the Committee meeting.
Overall
financial performance is in line with phased annual plan
13. Auckland
Council Group generated an operating surplus before gains and losses of $1,376
million for the three months to 30 September 2017, compared to the phased
budget of $1,539 million.
|
Quarter 1
Financial performance (in $ million)
|
Actual
|
Phased Budget
|
Variance
|
|
Revenue
|
2,357
|
2,518
|
(161)
|
|
Expenses
|
981
|
979
|
2
|
|
Operating
surplus before gains and losses
|
1,376
|
1,539
|
(163)
|
|
Net other gains
(losses)/Share of surpluses in associates and joint ventures
|
(52)
|
(1)
|
(51)
|
|
Surplus before
income tax
|
1,324
|
1,538
|
(214)
|
14. The operating
surplus before gains and losses unfavourable variance of $163 million is
largely driven by the accounting treatment of the City Rail Link of $229
million partly offset by the favourable variance on vested asset revenue of $77
million.
15. Total
revenue excluding gains was $161 million lower than phased budget, mainly
driven by the following:
|
(in $
million)
|
Variance to
budget
|
Favourable/
Unfavourable
|
Explanation
|
|
Grants and subsidies
|
(229)
|
|
When the Annual Budget 2017/18 was approved, the
transfer of the City Rail Link assets was shown as a grant.
Subsequently with the execution of the contracts the
receivable from the Crown for transfer of assets to City Rail Link Limited is
now recognised against “Property, plant and equipment” in the
statement of financial position and only the finance charge from the Crown
recognised in the statement of financial performance
|
|
Development and financial contributions
|
(12)
|
|
Lower than expected due to timing of developments
|
|
Fees and user charges
|
(7)
|
|
Lower than budget by $7 million mainly due to lower
volumes of resource and building consents processed during the quarter
|
|
Vested assets
|
77
|
|
Higher due to timing and volume of vesting of assets
in Auckland Council Group
|
|
Finance revenue
|
6
|
|
Higher than expected mainly driven by the
Crown’s reimbursement of finance charges on City Rail Link stage 1
works
|
|
Dividend, rental income and infrastructure growth
charges
|
6
|
|
Higher than expected
|
16. Total
expenditure excluding other gains and losses is higher than budget by $2
million, mainly driven by the following:
|
(in $
million)
|
Variance to
budget
|
Favourable/
Unfavourable
|
Explanation
|
|
Weathertightness
expense
|
(15)
|
|
Weathertightness
provision increase due to adjustments relating multi-unit claims
|
|
Depreciation and amortisation
|
14
|
|
Lower than budget mainly driven by delays in the
timing of the capitalisation of projects
|
17. The net other
losses of $53 million are primarily non-cash book entries, driven by the
increase in the fair value of the interest rate swaps, resulting from lower
long-term interest rates.
18. Other than
for the City Rail Link budget accounting treatment difference, overall the
financial performance is in line with the phased annual plan.
Group
net assets increased by $1,314 million
19. The Group net
assets increased by $1,314 million, to $37,090 million, during the three months
to 30 September 2017.
|
Financial
position (in $ million)
|
Actual
|
Actual
|
|
|
|
30-Sep-17
|
30-Jun-17
|
|
Movement
|
|
Assets
|
48,473
|
47,359
|
|
1,114
|
|
Liabilities
|
11,383
|
11,583
|
|
(200)
|
|
Net assets
|
37,090
|
35,776
|
|
1,314
|
|
|
|
|
|
|
|
Borrowings, net
of cash and cash equivalents
|
8,011
|
7,963
|
|
48
|
· the
principal contributors being the:
o increase
in net rates receivables of $1,116 million as a result of recognising upfront
the 2017/18 rates at the time of the issuance of the rating notices.
o investment
in property, plant and equipment, net of depreciation, of $246 million.
o reduction
in payables and provision of approximately $134 million.
o increase
in derivative financial assets and other receivables of $85 million.
· partly
offset by:
o sale
of the remaining Diversified Financial Assets Portfolio of $222 million.
o minor
increase in borrowings, net of cash and cash equivalents of $48 million.
20. The
accounting treatment of Auckland Council’s investment in City Rail Link
Limited effective 1 July 2017 is still being agreed with Audit New
Zealand. The differences in the options available to account for this
interest are not material to the group net assets as at 30 September 2017.
Cash
flows applied to infrastructure expansion and renewals
21. During the
three months the Group has invested $430 million cash to expand and renew
community and infrastructure assets. These were funded by operating cash
flows and the sale of the remaining balance of the Diversified Financial Assets
Portfolio.
Capital
expenditure in the first quarter amounted to $341 million
22. The
Group’s capital expenditure in the first quarter of $341 million is 85%
of the total phased budget of $399 million. Refer to Attachment A for
further information.
Credit
rating financial ratio is being maintained
23. The credit
ratings of Auckland Council were reaffirmed in October 2017 by Standard &
Poor’s and Moody’s, AA and Aa2, respectively.
Consideration
Local
board views and implications
24. 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
25. 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
26. There are no
implementation issues as this report is for information only.
Attachments
|
No.
|
Title
|
Page
|
|
a⇩
|
Auckland Council Group Quarterly Financial Report 30
September 2017
|
103
|
Signatories
|
Author
|
Francis Caetano - Group Financial Controller
|
|
Authorisers
|
Kevin Ramsay - General Manager Corporate Finance and
Property
Matthew Walker – GMActing Chief Group Financial
Officer
|
|
Finance and
Performance Committee
24 November
2017
|
|
|
Finance and
Performance Committee
24 November
2017
|
|
Council-controlled organisations first quarter report
for 30 September 2017
File No.: CP2017/23828
Purpose
1. To receive the reports of each substantive council-controlled
organisation (CCO) for the quarter ending 30 September 2017.
Executive
summary
2. The
attached reports from each CCO provide an update on strategic issues,
achievements, risks, key projects, financial results and performance results.
These reports support the consolidated group financial statements for the
quarter ending 30 September 2017.
3. In
line with current reporting obligations, it is the responsibility of the board
of each CCO to keep the committee, as the shareholder, informed of key risks
and issues, and the status of their operating and financial performance.
Watercare Services Limited and Auckland Transport represented by their
Chair/Chief Executive and Chief Financial Officer will be presenting at the
meeting.
|
Recommendation/s
That the Finance and Performance Committee:
a) receive
the first quarter report from the following council-controlled organisations:
i) Watercare
Services Limited (Watercare)
ii) Auckland
Transport (AT)
iii) Auckland
Council Investments Limited (ACIL)
iv) Auckland
Tourism, Events and Economic Development Limited (ATEED)
v) Panuku
Development Auckland (Panuku)
vi) Regional
Facilities Auckland (RFA).
|
Attachments
|
No.
|
Title
|
Page
|
|
a⇩
|
Watercare first quarter report for the period ending
30 September 2017
|
113
|
|
b⇩
|
AT first quarter report for the period ending 30
September 2017
|
141
|
|
c⇩
|
ACIL first quarter report for the period ending 30
September 2017
|
167
|
|
d⇩
|
ATEED first quarter report for the period ending 30
September 2017
|
179
|
|
e⇩
|
Panuku first quarter report for the period ending 30
September 2017
|
203
|
|
f⇩
|
RFA first quarter report for the period ending 30
September 2017
|
221
|
Signatories
|
Author
|
Robert Irvine - Head of Group Financial Planning
|
|
Authorisers
|
Ross Tucker - Manager Financial Planning and Strategy
Matthew Walker - Acting Group Chief Financial Officer
|
|
Finance and
Performance Committee
24 November
2017
|
|
|
Finance and
Performance Committee
24 November
2017
|
|
|
Finance and
Performance Committee
24 November
2017
|
|
|
Finance and
Performance Committee
24 November
2017
|
|
|
Finance and
Performance Committee
24 November
2017
|
|
|
Finance and Performance
Committee
24 November
2017
|
|
