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
·
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.
|
Finance and
Performance Committee
06 June 2018
|
|
Auckland
Council Group quarterly financial report and financial results to 31 March 2018
File No.: CP2018/06933
Te take mō te pūrongo / Purpose of the report
1. To
inform the Finance and Performance Committee of the financial performance of
the Auckland Council Group, for the nine months to 31 March 2018, as set out in
the attached unaudited quarterly financial report.
Whakarāpopototanga matua / 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 nine months to 31 March
2018.
3. The
group generated an operating surplus, before gains and losses, of $788 million,
for the nine months to 31 March 2018, compared to the phased budget of $898
million. The unfavourable variance of $110 million was driven by the change in
accounting treatment for the City Rail Link transaction (-$229 million), offset
against vested asset revenue ($119 million).
4. The
total net assets increased by $635 million, to $36,411 million, as at 31 March
2018.
5. During
the nine months, the group has invested $1,115 million, to expand and renew the
community and infrastructure assets. These were funded by operating cash flows
and the balance from borrowings.
6. The
Auckland Council Parent and Council Controlled Organisations will be reporting
their individual performance to this meeting in separate reports.
7. The
key performance highlights for the committee members to discuss with the
council parent and Council Controlled Organisations during their presentations
at this committee meeting are:
· Employee
benefits of the group were favourable against budget by $6 million. Details are
as follows:
|
|
(Un)Favourable
|
|
Auckland
Council
|
23
|
|
Auckland
Council Investments Limited Group (Ports of Auckland)
|
(6)
|
|
Auckland
Transport
|
(5)
|
|
Regional
Facilities Auckland
|
(2)
|
|
Panuku
Development Auckland
|
1
|
|
Budget
reclassification
|
(5)
|
· Capital
expenditure of the group for the nine-month period was $240 million behind
phased budget. The actual capital expenditure and phased budget excludes the
funding to City Rail Link Limited.
|
Actual
|
Phased budget
|
Variance (un)favourable
|
|
Auckland
Transport
|
436
|
502
|
(66)
|
|
Auckland
Council
|
320
|
377
|
(57)
|
|
Auckland
Council Investments Council Group
|
89
|
130
|
(41)
|
|
Panuku
Development Auckland
|
8
|
46
|
(38)
|
|
Watercare
Services Group
|
229
|
257
|
(28)
|
|
Regional
Facilities Auckland
|
26
|
43
|
(17)
|
|
Auckland
Tourism, Events and Economic Development
|
7
|
-
|
7
|
|
Total
|
1,115
|
1,355
|
(240)
|
· Regional
Facilities Auckland’s revenue was lower against the approved revised
budget. However, costs have not reduced proportionately, resulting in an
unfavourable net direct expenditure variance for the nine-month period.
|
Ngā tūtohunga / Recommendation/s
That the Finance and
Performance Committee:
a) note
the Auckland Council Group, for the nine months to 31 March 2018, generated
an operating surplus before gains and losses of $788 million, and an increase
in net assets of $635 million to $36,411 million
b) note
that the financial performance, net of the City Rail Link budget accounting
treatment difference, against the phased annual plan shows a favourable
non-cash vested asset revenue of $119 million, lower than expected
development contributions of $30 million and weathertightness provision of
$69 million.
|
Horopaki / Context
8. This
report discloses the financial performance, financial position and cash flows
of the council group, for the nine months ended 31 March 2018. This paper has
been prepared to inform the committee members and to enable them to ask
questions of staff at the committee meeting.
Overall financial performance is in line
with phased annual plan
9. The
council group generated an operating surplus before gains and losses of $788
million for the nine months ended 31 March 2018, compared to the phased budget
of $898 million.
|
Quarter 3 financial performance ($ million)
|
Actual
|
Phased budget
|
Variance
|
|
Revenue
|
3,642
|
3,748
|
(106)
|
|
Expenses
|
2,854
|
2,850
|
4
|
|
Operating
surplus before gains and losses
|
788
|
898
|
(110)
|
|
Net
other (losses) gains
|
(142)
|
35
|
(177)
|
|
Surplus
before income tax
|
646
|
933
|
(287)
|
10. The
operating surplus before gains and losses unfavourable variance of $110 million
is largely driven by the accounting treatment of the City Rail Link of $229
million, offset by the favourable variance on vested asset revenue of $119
million.
11. Total
revenue excluding gains was $106 million lower than phased budget, mainly
driven by the following:
|
(in $ million)
|
Variance to budget
|
Favourable/
Unfavourable
|
Explanation
|
|
Grants and subsidies
|
(219)
|
|
When the Annual Budget 2017/2018 was approved, the
accounting treatment for City Rail Link had not been finalised.
Subsequently,
with the execution of the contracts, the accounting treatment has differed
from that included in the Annual Budget 2017/2018, with the budgeted grant
recognised as a reduction against “Property, plant and equipment”
in the statement of financial position and the finance charge from the Crown
recognised in the statement of financial performance.
Remaining
favourable variance of $10 million, net of City Rail Link accounting
treatment difference, relates to higher grants and subsidies from New Zealand
Transport Agency driven by timing of funding.
|
|
Vested assets
|
119
|
|
Higher due
to timing and volume of vesting of assets in the council group.
|
|
Finance revenue
|
23
|
|
Higher than
expected. Mainly driven by the Crown’s reimbursement of finance charges
on City Rail Link stage 1 works and first quarter initial funding to City
Rail Link Limited, totaling $14.5 million and higher level of cash and
short-term deposits.
|
|
Development contributions
|
(30)
|
|
Lower than
expected due to timing of developments.
|
|
Fees and user charges
|
(5)
|
|
Lower than
expected resource and building consents revenue and public transport revenue,
offset by favourable port operations revenue driven by new subsidiaries,
Nexus and Conlinxx.
|
|
Others
|
6
|
|
Higher than
expected dividend income and other revenue.
|
12. Total
expenditure excluding losses was $4 million higher than phased budget, mainly
driven by the following:
|
(in $ million)
|
Variance to budget
|
Favourable/
Unfavourable
|
Explanation
|
|
Weathertightness expense
|
(69)
|
|
Weathertightness
provision increase due to provision assumption changes and increase in repair
costs for multi-unit dwelling claims.
|
|
Depreciation and amortisation
|
44
|
|
Lower than
budget mainly driven by delays in the completion of projects and revised
useful lives of transport assets as a result of the latest revaluations.
|
|
Consultancy and professional fees
|
10
|
|
Lower than
expected due to the timing of the projects.
|
|
Employee benefits
|
6
|
|
Mainly
driven by unfilled vacancies at the council parent.
|
|
Other operating expenses
|
5
|
|
Lower than
expected repairs and maintenance and utilities costs.
|
13. Employee
benefits of the group was favourable against budget by $6 million, driven by
the following variances:
|
|
(un)favourable
|
|
Auckland
Council
|
23
|
|
Auckland
Council Investments Limited Group (Ports of Auckland)
|
(6)
|
|
Auckland
Transport
|
(5)
|
|
Regional
Facilities Auckland
|
(2)
|
|
Panuku
Development Auckland
|
1
|
|
Budget
reclassification
|
(5)
|
14. Regional
Facilities Auckland’s revenue was lower against the approved revised budget.
However, costs have not reduced proportionately, resulting in an unfavourable
net direct expenditure variance for the nine-month period.
15. The net
other losses of $177 million are primarily non-cash book entries, driven by the
decrease in the fair value of interest rate swaps, resulting from lower
long-term interest rates.
Group
net assets increased by $635 million
16. The group
net assets increased by $635 million, to $36,411 million, during the nine
months to 31 March 2018.
|
Actual
|
Actual
|
|
|
31-Mar-18
|
30-Jun-17
|
Movement
|
|
Assets
|
48,543
|
47,359
|
1,184
|
|
Liabilities
|
12,132
|
11,583
|
549
|
|
Net assets
|
36,411
|
35,776
|
635
|
|
Borrowings,
net of cash and cash equivalents
|
8,315
|
7,969
|
346
|
The principal contributors being the:
· movement
in receivables of $384 million mainly due to net uncollected rates receivables
not yet due but recognised at the time of the issuance of the 2017/2018 rating
notices
· net
increase of $702 million in property, plant and equipment, intangible assets,
investment property and investments in associates and joint ventures, mainly
attributed to City Rail Link Limited
partly offset by:
· increase
in borrowings, net of cash and cash equivalents, of $346 million.
Cash
flows applied to fund infrastructure asset expansion and renewals
17. During
the nine months, the group has invested $1,115 million to expand and renew
community and infrastructure assets. These were funded by operating cash flows
and the balance from borrowings.
Capital expenditure for the nine months
amounted to $1,115 million
18. The
group’s capital expenditure for the nine months to 31 March 2018, of
$1,115 million, is 82% of the phased budget of $1,355 million. The actual
capital expenditure and phased budget excludes the funding to City Rail Link
Limited. The actual funding made to City Rail Link Limited for the nine months
to 31 March 2018 was $65 million, against the phased budget of $59 million.
19. Excluding
the funding to City Rail Link Limited, the capital expenditure of the group,
for the nine-month period, was $240 million behind the phased budget.
|
Actual
|
Phased budget
|
Variance (un)favourable
|
|
Auckland
Transport
|
436
|
502
|
(66)
|
|
Auckland
Council
|
320
|
377
|
(57)
|
|
Auckland
Council Investments Council Group
|
89
|
130
|
(41)
|
|
Panuku
Development Auckland
|
8
|
46
|
(38)
|
|
Watercare
Services Group
|
229
|
257
|
(28)
|
|
Regional
Facilities Auckland
|
26
|
43
|
(17)
|
|
Auckland
Tourism, Events and Economic Development
|
7
|
-
|
7
|
|
Total
|
1,115
|
1,355
|
(240)
|
Credit
rating financial ratio continues to be managed within threshold, but limited
headroom
20. The
credit rating ratio has increased closer to the threshold of 270% from 251% at
30 June 2017 to 261.5% at 31 March 2018.
21. This ratio
increase is due to the 9% increase in debt from 30 June 2017 compared to only
4% increase in adjusted revenue. The adjusted revenue is net of capital
expenditure related revenue such as development contributions and capital
grants and subsidies.
22. The
higher level of borrowings reflects the higher level of pre-funding for this
financial year.
23. Increase
in debt is also driven by increase in the net present value of the operating
lease commitments, mainly driven by the finalisation of further agreements
since 30 June 2017, under the Public Transport Operating Model of Auckland
Transport. These agreements were determined to contain a lease.
Ngā whakaaweawe ā-rohe me ngā tirohanga a te
poari ā-rohe /
Local impacts and local board views
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.
Tauākī whakaaweawe Māori / 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. The council’s contributions to
Māori outcomes are reported in the annual report.
Ngā
tāpirihanga / Attachments
|
No.
|
Title
|
Page
|
|
a⇩ 
|
Auckland Council Group Financial report 31 March 2018
|
17
|
Ngā kaihaina / Signatories
|
Authors
|
Gina Cruz - Group Accountant - Policies &
Standards
Dan Keys - Senior Financial Accountant
|
|
Authorisers
|
Kevin Ramsay - General Manager Corporate Finance and
Property
Matthew Walker - Acting Group Chief Financial Officer
|
|
Finance and
Performance Committee
06 June 2018
|
|
Auckland Council parent performance
report for the period 1 January 2018 to 31 March 2018
File No.: CP2018/07859
Te take mō te pūrongo / Purpose of the report
1. To
provide an overview of the Auckland Council organisation (the parent entity)
performance results for the period 1 July 2017 to 31 March 2018.
Whakarāpopototanga matua / Executive summary
Service Performance
2. This
report includes results against LTP performance measures. Only some of the
total set of measures are reported on a quarterly frequency.
3. This
quarter, 43 measures are reported. 27 measures (63 per cent) reached their
target and 16 (37 per cent) did not.
4. 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
5. For
performance measures showing a red status, an explanation of the performance is
provided.
Financial Performance
6. This
report shows how the organisation is performing against the revised budget and
outlines any associated financial risks.
7. The
YTD March 2018 quarter’s net operating result was $42 million better than
budget. This was mainly due to lower than budgeted interest costs ($21 million
below budget) and staff costs ($16 million below).
8. YTD
March 2018 capital expenditure was $320 million (53 per cent of the full year
$608 million budget), with $288 million budget remaining for the rest of the
financial year. The current forecast is that year end capital expenditure will
be $495 million.
9. Appendices
to this report include information on professional services expenditure, LGOIMAs
and customer services. Group financial results and CCO performance results are
in separate agenda papers.
|
Ngā tūtohunga / Recommendation/s
That the Finance and
Performance Committee:
a) receives
the performance report for the Auckland Council parent for the period of 1
July 2017 to 31 March 2018.
|
Horopaki / Context
10. 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.
11. Following
the subsections on themes, an additional subsection provides a consolidated
commentary on financial performance.
Tātaritanga me ngā tohutohu / Analysis and advice
Auckland Development theme
Auckland Development Highlights
12. Highlights
for the Auckland Development theme include:
· The
public consultation period for the draft Auckland Plan 2050 has concluded. This
was a joint consultation with the 10-year budget 2018-2028. 50 Have Your Say
consultation events were held, and 32,000 pieces of feedback were received.
Many written submissions were analysed using robots, which can automatically
and swiftly categorise submissions (a previously people-intensive and slow
process). Recommendations for any changes as a result of the feedback received
will be discussed at Planning Committee workshops in early May 2018 and
decisions made at Planning Committee meetings.
· 39
submissions were received on the Notice of Requirement for the proposed second
runway at Auckland Airport. The second runway has been consented, however the
airport now requires it to be 72 meters longer than that previously consented
to allow for longer range aircraft to land safely. The second runway is
planned to be operational in 2028.
· The
Green Bonds framework has been developed and Auckland Council is set to be the
first New Zealand council to issue Green Bonds later this year. Green
Bonds raise funds for assets and projects that have positive environmental and
sustainability impacts.
· The
Environment Committee approved the Urban Forest Strategy in February. The
strategy aims to grow the benefits of Auckland’s urban ngahere (the network
of trees, bushes and green areas), with a target to increase the green canopy
cover across Auckland to 30 per cent, with no local board areas being less than
15 per cent.
Auckland Development Financial Performance
|
$million
|
YTD Actual
|
YTD Revised Budget
|
YTD Variance
|
FY Annual Plan
|
|
Net operating expenditure
|
98
|
107
|
9
|
9%
|
138
|
|
Capital expenditure
|
52
|
85
|
33
|
39%
|
141
|
13. Net
operating expenditure for the Auckland Development theme was $9 million below
the revised March year-to-date budget. Higher rental property revenue,
lower staff costs due to vacancies, a delayed community grant, and delayed
repairs and maintenance, were the reasons for the lower spending.
14. Capital expenditure was $33 million below the March year-to-date
revised budget. In Hobsonville, a strategic land acquisition has been
delayed, and the project is awaiting cost recharges by external contractors.
This was offset by the Totara Stormwater Ponds project progressing ahead of
plan.
Auckland Development Service Performance
15. 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 3 result
|
Quarter 3 target
|
Status
|
Actual Result
|
|
Percentage of Unitary and Area Plan changes and Notices of
Requirement processed within statutory timeframes
|
100%
|
100%
|
Ο
|
100%
|
|
Proportion of actions from strategies
and action plans that are being implemented according to timeframes (LTP)
|
90%
|
80%
|
Ο
|
90%
|
Environmental Management and Regulation theme
Environmental Management and Regulation Highlights
16. Highlights
for the Environmental Management and Regulation theme include:
· The
Auckland region-wide stormwater network discharge consent was notified in
February. The single consent covers a 35-year period, with a six-yearly review
programme. It covers the maintenance, operation, upgrade and extension of the
stormwater network and it incorporates targets associated with the National
Policy Statement for Freshwater Management programme.
· In
an effort to make Waiheke Island one of the world’s only populated,
predator-free islands, the Waiheke Collective submitted a proposal to Predator
Free 2050 for central government funding. The proposal is seeking $5.3
million towards the total cost of $15.8 million to free the island of rats and
mustelids by 2025.
· Repairs
are continuing across the region to recover from the coastal storms in January.
In the North, emergency repairs to Stanmore Bay’s damaged beachfront were
completed. In the South, repairs to Hudson’s Beach seawall will be
completed in March, and work on the Clarkes Beach seawall will start later in
the year.
· The
residential food scraps service started in March, with Papakura being the first
area to get the new three-bin service. The food scrap service will help
to reduce rubbish entering into Auckland’s landfills, and be implemented
across all urban areas in the region by 2020.
Environmental Management and Regulation Financial Performance
|
$million
|
YTD Actual
|
YTD Revised Budget
|
YTD Variance
|
FY Annual Plan
|
|
Net operating expenditure
|
219
|
214
|
(5)
|
(2%)
|
290
|
|
Capital Expenditure
|
97
|
94
|
(3)
|
(4%)
|
117
|
17. Net
operating expenditure for the Environmental Management and Regulation theme is
over the March year-to-date revised budget by $5 million. This is primarily
driven from lower revenue, a result of lower than budgeted growth in building
consent volumes. Capital expenditure is $3 million ahead of budget with
Healthy Waters, Development Programme Office and Waste Management projects
progressing ahead of schedule.
18. Building
consents revenue as at March year-to-date is $9.2 million below budget, and at
year-end is forecast to be $11 million below budget. This reflects a 9 per cent
fall in building consent volumes compared to the same quarter last year (19,900
YTD March 2018 vs 21,954 YTD March 2017).
Environmental Management and Regulation Service Performance
19. There is
a significant issue with the process used for calculating the percentage of
building consent applications processed within 20 working days. In an
interim audit, Audit NZ has discovered issues with when the statutory clock
starts, and issues of documentation to validate when the clock is stopped and
started as consents are processed. The issues are:
· When
a consent application is received, workloads means it can often take a few days
before it begins to be processed. Previously, two days were allowed to
accommodate this. However, under new Ministry of Business Innovation and
Employment guidance, the clock must begin on the day the application is
received, if that application has the correct information in it. Prior to
February 2018, it appears that this was not being done consistently.
· There
are also ongoing issues with documenting decisions to stop and start the clock
during the processing period in order to obtain further information from the
customer. This issue was disclosed in the 2016/17 Annual Report, and it
has continued into this current year. From February 2018 onwards, a
greater focus has been put on monitoring compliance and ensuring the correct
process is followed.
This means that, as at year-end, we may have to discount the
results to reflect that, prior to February 2018, we may not have been following
due process. We will also have to clearly disclose these issues in our
Annual Report.
Currently the year-to-date result shows that 88% of
building consents are processed within 20 working days; however the year-end
result is likely to be discounted to a level significantly lower than this.
20. 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 3 result
|
Quarter 3 target
|
Status
|
Actual Result
|
|
Percentage of customers satisfied with the overall quality of
building control service delivery
|
50%
|
65%
|
Ο
|
55%
|
|
New technologies and processes have been introduced which over the
long term will have a positive impact on customer satisfaction, but which
over the short term have negatively impacted on satisfaction as they are
bedded in. These include Newcore, Consenting Made Easy, and streamline
consenting services.
|
|
Percentage of Building Consent applications processed within 20
working days
|
88%
(see para. 19)
|
100%
|
Ο
|
80%
|
|
Whilst
the 88% result looks like a large improvement over the previous year’s
result, Audit NZ has identified issues with the way that we start and stop
the statutory clock, and the documentation supporting that. This will
have a major impact on the year-end result that we will report (which will be
discounted to reflect these issues).
|
|
Percentage of customers satisfied with the overall quality of
resource consents service delivery
|
48%
|
55%
|
Ο
|
58%
|
|
As with building consents, new technologies and processes have been
introduced which over the long term will have a positive impact on customer
satisfaction, but which over the short term have negatively impacted on
satisfaction as they are bedded in. These include Newcore, Consenting Made
Easy, and streamline consenting services.
|
|
Percentage of non-notified Resource Consent applications processed
within 20 working days
|
71%
|
100%
|
Ο
|
78%
|
|
Processing
times have been impacted by the introduction of new systems and processes,
and the recent restructure which has created vacancies in specialist
roles.
|
|
Percentage of notified Resource Consent applications processed within
70 working days.
|
55%
|
100%
|
Ο
|
45%
|
|
Processing
times have been impacted by the introduction of new systems and processes,
and the recent restructure.
|
21. 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 3 result
|
Quarter 3 target
|
Status
|
Actual Result
|
|
Percentage of urgent animal management complaints such as dog
attacks responded to within one hour
|
99%
|
95%
|
Ο
|
99.5%
|
|
Percentage of known dogs that are registered
|
90%
|
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
|
58%
|
80%
|
Ο
|
77%
|
|
Contractors are not meeting their contracted service
KPIs. In order to address issue, we have applied a reduction to monthly
invoicing to sanction for repeated poor performance. These performance
issues were also considered during the recent renewing of contracts.
|
|
Percentage of complainants satisfied with noise control services
|
53%
|
52%
|
Ο
|
59%
|
|
Percentage of registered food premises graded annually
|
82%
|
95%
|
Ο
|
95%
|
|
The result is below target due to renewal of licenses and
the transition to the Food Act 2016. Those businesses that renew will
be graded; however those who apply for transition will be verified in
accordance with Food Act requirements.
|
|
Percentage of customers satisfied with the food and hygiene
licensing service
|
79%
|
70%
|
Ο
|
82%
|
|
Percentage of D/E graded food premises re-inspected within one
month
|
97%
|
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
|
39%
|
100%
|
Ο
|
100%
|
|
39% of premises have been inspected, with the remainder
of premises to be inspected over the last quarter of the year. This is in line with business practice
in previous years where the bulk of inspections are done at the end of the
financial year.
|
|
Percentage of customers satisfied with the alcohol licensing
service
|
85%
|
68%
|
Ο
|
83%
|
|
Percentage of bylaw-related requests for service (e.g. illegal
signs, public nuisance, street trading) responded to within three days
|
76%
|
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%
|
22. 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 3 result
|
Quarter 3 target
|
Status
|
Actual Result
|
|
Domestic kerbside refuse per capita per
annum
|
145kg
|
110kg
|
Ο
|
144kg
|
|
Domestic rubbish sent to landfills has significantly
reduced. However the target will not be met until food waste
initiatives are fully implemented in 2020 (given food waste comprises 45% of
domestic waste). The food waste service was started in Papakura this quarter,
and will be progressively rolled out across Auckland region’s urban
areas.
|
|
Total number of Resource Recovery Facilities
|
5
|
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
|
28%
|
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, 36 are under active management.
|
|
Percentage of indigenous ecosystems under active management
|
70%
|
68%
|
Ο
|
68%
|
|
Number of hectares under community pest control
|
124,000
|
90,000
|
Ο
|
124,000
|
|
Percentage of land area with less than 5% residual trap catch for
possums
|
38%
|
52%
|
Ο
|
52%
|
|
After a
review of the methods used to capture this measure in light of the very large
areas being managed by community groups on the Awhitu and Tapora peninsulas,
and the small contract used to manage the South Kaipara peninsula, we
have determined that 38% of the region being under 5% residual trap catch.
|
|
Proportion of kauri areas on Auckland Council land that have active
management or exclusion measures in place for kauri dieback disease
|
68%
|
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 adequate 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
|
59%
|
58%
|
Ο
|
73%
|
23. 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 3 result
|
Quarter 3 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
|
0.51
|
3.0
|
Ο
|
1.01
|
|
Proportion of environmental programmes led or supported,
with Māori participation
|
50%
|
15%
|
Ο
|
41%
|
Parks, Community and Lifestyle theme
Parks, Community and Lifestyle Highlights
24. Highlights
for the Parks, Community and Lifestyle theme include:
· Arts and culture’s biggest event programme
for the year, Music and Movies in Parks came to a close over Easter. 54
individual outdoor events were held.
· The Arts
& Culture delivered a very successful POP programme bringing
interactive art out of the galleries and theatres and into the streets around
the central city. POP Marbles, POP Ping Pong, POP Big Bang (an installation of
25 light-up drums) and POP Plinths featured across Freyberg Place, Aotea Square
and Grey Lynn Park. Performance based projects POP Poi and POP Riders featured
in different sites throughout the programme. After being successful in the
central city with the Waitemata Local Board, POP will now have two-week run at
Mangere and Ōtāhuhu in conjunction with the Mangere-Ōtāhuhu
Local Board.
· Vector Lights was launched January
2018, as part of a 10+-year smart energy partnership between Vector and
Auckland Council (in collaboration with NZTA). Vector is strongly committed to
provide innovative and efficient technology systems.
· Over 800 people participated in the
annual Round the Bays event in early March. Auckland Council organised
the event, and many council staff role-modelled the being active, more often
goal by running in the event.
· In
March Active Recreation successfully completed the rollout of the new Envibe
operating system across its 19 centres. Our customers now have one system that
provides access to multiple facilities, provides multiple payment options and
helps us to communicate more effectively with our customers. Over 70,000
customer details were transferred into Envibe.
· The
Pacifica Mamas: Korero Mai exhibition opened at Waitakere Central
Library in March. The vibrant and colourful display of woven works by the
Pacifica Mamas, in collaboration with Angelique Tuaputa, was brought together
to celebrate of Pasifika art, culture, language and history.
· Green
accreditation: Green Star Performance was
launched in New Zealand late last year and is an internationally recognised
sustainability rating system. Three council staff staff are now Green Star
accredited professionals and shortly, the Waikumete, Schnapper Rock and Manukau
Memorial Gardens crematorium facilities will be the first in the world to
receive a Green Star Performance rating.
· The One
Million Trees programme is progressing well with 174,000 plants having been
already planted, with a further 550,000 scheduled for next year.
· 10 Auckland parks have been recognised
internationally through the Green Flag awards. These were Long Bay Regional
Park (Long Bay), Sanders Reserve (Paremoremo), Auckland Domain (Grafton),
Waikumete Cemetery (Glen Eden), Olympic Park (New Lynn), Tāwharanui
Regional Park (Tāwharanui Peninsula), Parrs Park (Glen Eden), Wenderholm
Regional Park (Waiwera), Ambury Regional Park (Mangere
Bridge) and Tapapakanga Regional Park (Orere).
· An important element of the Westgate development, Te
Hauāuru Park, was officially opened in March. Te Hauāuru Park
provides a 1.1 hectare town centre park containing public toilets, lawn event
space, civic market areas, a water feature and specimen trees.
Parks, Community and Lifestyle Financial Performance
|
$million
|
YTD Actual
|
YTD Revised Budget
|
YTD Variance
|
FY Annual Plan
|
|
Net operating expenditure
|
380
|
385
|
5
|
1%
|
497
|
|
Capital expenditure
|
127
|
184
|
57
|
31%
|
279
|
25. Net operational
expenditure for the Parks, Community and Lifestyle theme is $5 million below
the March year-to-date revised budget. This is a combination of lower costs as
a result of the timing of community events programmes, and repairs and
maintenance delays, offset by recreation revenue being lower than budget mainly
due to delays in fees standardisation and changes to membership models.
26. Capital
expenditure is $57 million behind, mainly due to timing of land acquisitions
for parks and sports development, together with slower renewals for leisure
facilities and major sports fields. There has also been slower than expected
progress for new build projects such as the Westgate multi-purpose community
facility. The forecast is that the capital expenditure budget will be
spent by the year end.
Parks, Community and Lifestyle Service Performance
27. 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 3 result
|
Quarter 3 target
|
Status
|
Actual Result
|
|
Total permitted events taking place across the city
|
1154
|
2200
|
Ο
|
1610
|
|
Since targets were set, opportunities have been
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 end effort for event organisers.
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
|
23%
|
20%
|
Ο
|
23%
|
|
Number of visits to Auckland Libraries website
|
5.98m
|
5.48m
|
Ο
|
6.71m
|
|
Number of library items borrowed
|
11.44m
|
11.25m
|
Ο
|
15.34m
|
|
Use of libraries as digital community hubs: number of internet
sessions per capita (PC and WIFI)
|
3.51m
|
1.5m
|
Ο
|
4.61m
|
|
Percentage of items borrowed that are e-collections (e.g. eBooks,
Audiobooks)
|
14%
|
13.75%
|
Ο
|
11.5%
|
|
Percentage of city park service requests completed on time
|
52%
|
90%
|
Ο
|
89%
|
|
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. Due to
the recent storms, this service improvement has been delayed, however they
are working with the call centres for potential improvements.
|
|
Percentage of all assets that are graffiti free across
the city
|
94%
|
94%
|
Ο
|
94%
|
|
Number of volunteer hours worked in regional parks each year
|
42,000
|
80,000
|
Ο
|
84,860
|
|
The full year target of 80,000 volunteer hours is
expected to be achieved by the end of the year.
|
|
Number of key sites of significance on Tūpuna Maunga
with mitigation measures to improve or maintain their condition
|
32
|
25
|
Ο
|
33
|
|
Number of activities that mana whenua are engaged in on
Tūpuna Maunga
|
23
|
7
|
Ο
|
17
|
Governance and Support theme
Governance and Support Highlights
28. Highlights
for the Governance and Support theme include:
· A
Heads of Agreement was signed with Te Akitai for the purchase and development
at 20 Barrowcliffe Place, Manukau to deliver approximately 200 housing units.
Most of these housing units will be affordable homes. The development of
Barrowcliffe Place is an important part of Panuku’s wider Transform
Manukau programme.
· The
2018 Kura Kāwana programme (the development programme for council’s
elected representatives) will start delivering programmes in the coming months,
with Civil Defence and Emergency Management, Diversity and Inclusion, and
Resource Management Act among the topics that will be available.
· ATEED
and GridAkl will soon share ICT resources and actively collaborate in a
co-design lab to collectively solve complex problems that affect the city. It
is hoped that Auckland Transport and Watercare will also join the
collaboration.
Governance and Support Financial Performance
|
$million
|
YTD
Actual
|
YTD
Revised Budget
|
YTD
Variance
|
FY
Annual Plan
|
|
Net operational expenditure
|
162
|
200
|
37
|
19%
|
181
|
|
Capital expenditure
|
45
|
63
|
18
|
29%
|
65
|
29. Net operational
expenditure is $37 million lower than March year-to-date revised budget due to
lower net interest costs.
30. Capital
expenditure is $18 million behind the YTD March 2018 budget. This is due
to the slower than budgeted timing of ICT and business enablement projects.
Governance and Support Financial Service Performance
31. 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 3 result
|
Quarter 3 target
|
Status
|
Actual Result
|
|
Number
of complaints regarding council demographic processes upheld by the Auditor
General or Ombudsman
|
0
|
0
|
Ο
|
0
|
Financial Performance
32. This
section summarises financial results for the quarter ended 31 March 2018 for
the Parent.
33. Operating
revenue is $347 million, $16 million below the year-to-date budget, mainly due
to the lower than budgeted revenue for building consents.
34. Operating expenditure was $1,598 million, $58 million less than the
March year-to-date revised budget. Major items which are under budget include:
· Staff
costs are $15.6 million below budget, reflecting the effort within the
organisation to actively consider whether each vacancy is required and applying
more controls around recruitment of new staff;
· Finance
expenses are $20.7 million below budget, due to lower than expected interest
rates;
· Professional
services/Outsourced services are $4.7 million under budget, due to work
programmes progressing slower than expected;
· Repairs
and maintenance costs are $6 million under budget due to the timing of work
programmes.
35. The
net operating surplus is $463 million, $39 million higher than
the year-to-date budget.
36. The
net non-operating deficit is $324 million. This is $452 million less than the
year-to-date budget and, as detailed in prior quarters’ reports, is due
to variances arising from City Rail Link transactions proposed in the Annual
Plan 2017/2018. With the execution of the contracts, these City Rail
Link transactions were recognised in the balance sheet.
37. March
year-to-date capital expenditure is $320 million, which is 53 per cent
of the full programme of $608 million approved for the year. The full
year capital expenditure is forecast to be $532 million.
38. Capital
projects that have been completed over the quarter were the:
· Renewal
and upgrade of Franklin Swim Sport and Fitness Centre;
· Town
Hall power supply upgrade and heritage footpath restoration;
· Installation
of LED lighting at Warkworth Showgrounds sportsfields, including community hard
courts, and the upgrade and undergrounding of overhead lines;
· Replacements
and clean-up work for foreshore assets damaged during the recent storms.
Balance sheet
|
$million
|
Actual as at March 2018
|
Projected per Annual Plan 2018
|
Actual audited June 2017
|
|
Assets
|
|
|
|
|
Property,
plant and equipment
|
13,811
|
14,237
|
13,660
|
|
Other
assets and investments
|
24,953
|
24,806
|
24,494
|
|
Less liabilities
|
|
|
|
|
Borrowings
|
8,068
|
7,827
|
7,705
|
|
Other
liabilities
|
1,939
|
1,874
|
1,854
|
|
Net assets (ratepayers’ equity)
|
28,758
|
29,342
|
28,597
|
39. The
increase in property, plant and equipment since June 2017 is due to a high
level of work in progress for capital projects in Community Facilities, Healthy
Waters and corporate properties, together with Stormwater-vested assets being
capitalized. Other assets and investments were higher than June 2017; mainly
due to prefunding of foreign bonds has increased cash holding, with no
refinancing requirements to late 2018.
Treasury management
40. 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.
41. Total
borrowing at March 2018 was $8.1 billion. The forecast closing debt at year-end
remains at $8.1 billion, compared to end of year closing budget of $8.5
billion.
42. The
March 2018 cost of funds was 5.14 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 March 2018 was 6.15 years.
43. The
Diversified Financial Assets portfolio was liquidated in September 2017 (as
approved by the Governing Body), meaning that $8 million of budgeted gains was
not realised.
Employee numbers
44. Employee
numbers are expressed in full-time equivalent (FTE) terms - which means
everyone is converted to the equivalent of forty hours per week.
45. 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 increased by 42
compared to end of June 2017 as vacancies in Regulatory Services and Community
Services are filled.
|
|
Q3 FY18
|
Q4 FY17
|
Q4 FY16
|
|
Number of full-time equivalents (FTE)
|
6,133
|
6,091
|
6,102
|
|
FTE per 1,000 residents
|
3.70
|
3.70
|
3.78
|
46. There has been
ongoing difficulty recruiting skilled staff in a number of front lines areas,
such as Regulatory Services.
47. Controlling
FTE numbers is a core focus for the parent. Each vacancy is now requiring
Executive Leadership Team member approval, and is subject to a finance review
prior to being recruited. All roles above $100,000 remuneration require
approval by the Executive Leadership Team as a group before being recruited.
Ngā whakaaweawe ā-rohe me ngā tirohanga a te
poari ā-rohe /
Local impacts and local board views
48. 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.
Tauākī whakaaweawe Māori / Māori impact
statement
49. 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.
Ngā ritenga ā-pūtea / Financial implications
50. There are
no legal financial or resourcing implications arising from receipt of this
report.
Ngā raru tūpono / Risks
51. There are
no risks arising from the receipt of this report.
Ngā koringa ā-muri / Next steps
52. There are
no next steps from this report.
Ngā
tāpirihanga / Attachments
|
No.
|
Title
|
Page
|
|
a⇩
|
Q3 FY18 Appendices 1-7
|
189
|
|
b⇩
|
Appendice Capital projects report
|
207
|
Ngā kaihaina / Signatories
|
Author
|
David Gurney - Manager Corporate Performance &
Reporting
|
|
Authorisers
|
Kevin Ramsay - General Manager Corporate Finance and
Property
Matthew Walker - Acting Group Chief Financial Officer
|
