Attachments of Māngere-Ōtāhuhu Local Board

Māngere-Ōtāhuhu Local Board

15 November 2023

Operating performance financial summary

Operating performance*

$(000’s)	FY24 Quarter 1			FY24
	Actual	Revised Budget	Variance	Revised Budget	Annual Plan

Net operating expenditure	5,253	5,811	558	20,227	19,521

Operating revenue	423	398	25	1,538	1,557
Community services	423	398	25	1,538	1,557

Operating expenditure	5,676	6,209	533	21,765	21,078
Community services	4,725	4,947	222	18,513	19,100
Environmental services	99	177	78	517	179
Governance	266	315	49	1,104	225
Planning	586	770	184	1,631	1,574

Commentary

Net operating expenditure of $5.3 million was below budget by 10 percent for the first three months of the 2023/2024 financial year.

Operating Revenue of $423,000 was above budget for the first quarter of the financial year. Revenue for aquatic activities and fitness was higher than budgeted due to volumes bouncing back faster than anticipated. This was partially offset by lease income received at Mangere Domain and Otuataua Stonefields Reserve, which was lower than budget.

Operating Expenditure of $5.7 million was below budget for the first quarter of the financial year. Majority of the spend was in Community Services relating to the full facilities maintenance contract and the operation of facilities across the local board, and this spend was above budget for the year to date. This overspend was offset by lower operations costs at Mangere Arts Centre, as well as timing of payments due to be made to Otahuhu Community Centre and Mangere Mountain Education Trust.

Locally Driven Initiatives (LDI) projects were slightly below budget overall for the year to date with most projects in planning stages to allow delivery throughout the financial year. During the first quarter, the local board paid out funding to support community capacity building, town centre safety initiatives, community arts programmes, as well as youth development and local events partnerships. The board also paid out funding for pest management initiatives across the local board areas and economic development grants which were resolved in July.

At the end of the year, staff assessed delivery against each work programme budgets and have identified two projects that required funding to be carried forward to 2023/24 to ensure completion. These projects are:

· Te Kete Rukuruku - stages 2 and 3

· Local economic development grants

*Note: These figures include direct expenditure on local activities and do not include any corporate overheads.

Locally Driven Initiatives by activity

$(000’s)	FY24 Quarter 1			FY24
	Actual	Revised Budget	Variance	Revised Budget	Annual Plan
Operating expenditure	360	447	87	1,951	1,859
Community services	237	216	(19)	1,190	1,510
Environmental services	99	176	77	515	177
Governance	1	2	1	26	9
Planning	23	51	28	220	163

Locally Driven Initiatives Operating Expenditure – all projects

Project Name	Year To Date ($000)			Full Year ($000)
Project Name	Actual	Revised Budget	Variance	Revised Budget	Annual Plan
ANZAC	6	4	(2)	22	20
Capacity building programme	30	14	(16)	75	40
CCTV and town centre safety initiatives	30	5	(25)	30	45
Christmas events	0	2	2	12	10
Community Arts Programmes	70	18	(52)	100	75
Community placemaking initiatives	0	9	9	50	25
Community services support	28	28	0	151	153
Ecological volunteers environmental programme	1	7	6	40	32
Extended Library hours	13	13	0	71	0
Facility Partnership Programme	0	15	15	80	80
Fees and charges subsidy	0	3	3	14	0
LDI Programme Events in local parks	0	9	9	50	35
LIB - Customer and community connection / cultural diversity	4	2	(2)	10	8
Local board discretionary fund	0	1	1	3	751
Local civic functions	0	3	3	15	0
Local community grants	0	46	46	252	99
Local events fund	34	10	(24)	55	34
Mangere Arts Centre business plan initiatives delivery	1	7	6	40	20
Maori responsiveness	0	5	5	30	27
Pop-Up Activations	0	4	4	20	20
Te Kete Rukuruku	0	1	1	9	15
Walter Massey Park concept finalisation	0	2	2	10	0
Youth connections across Auckland	0	4	4	20	0
Youth Grants	0	2	2	10	10
Youth programmes community development	20	4	(16)	20	10
Total Community services	237	216	(19)	1,190	1,510

Locally Driven Initiatives Operating Expenditure – all projects (cont.)

Project Name	Year To Date ($000)			Full Year ($000)
Project Name	Actual	Revised Budget	Variance	Revised Budget	Annual Plan
Bike Hub	0	13	13	27	14
Carbon reduction initiatives	0	0	0	30	0
Climate action	0	0	0	40	0
Construction and demolition waste minimisation	0	5	5	45	0
Crater Environmental restoration	0	0	0	20	16
Industry Pollution Prevention Programme	0	0	0	32	0
Manukau Harbour Forum	1	0	(1)	8	6
Pest management	72	133	61	173	75
Pet Behaviour education	0	8	8	8	0
Support resource recovery network project	10	5	(5)	20	18
Tamaki Estuary environmental forum	3	0	(3)	8	0
Waste reduction education and awareness	2	0	(2)	30	0
Waterways	0	0	0	0	48
Whakapiki te mauri o pukearuhe	12	12	0	75	0
Total Environmental services	99	176	77	515	177
Governance and Stakeholder engagement	0	0	0	12	0
LB Film income	0	0	0	5	0
Maori responsiveness	1	2	1	9	9
Total Governance	1	2	1	26	9
Locally Driven Initiatives (ATEED)	23	51	28	220	163
Total Planning	23	51	28	220	163
Total	360	447	87	1,951	1,860

Capital expenditure summary

Capital expenditure

$(000’s)	FY24 Quarter 1			FY24
	Actual	Revised Budget	Variance	Revised Budget	Annual Plan

Capital expenditure	845	744	(102)	6,709	5,873
Community services	839	697	(143)	6,467	5,850
Environmental services	2	44	42	219	0
Planning	4	3	(1)	23	23

Commentary

The local board capital delivery of $845,000 was above budget for the first three months of the 2023/2024 financial year. At this stage of the year, no major risks have been raised in respect to delivery of the capital programme.

Major projects in progress or completed this quarter are listed below:

· David Lange Park - develop destination playground and renew park assets. This sub-project is part of a wider project relating to the stage one works for David Lange Park - destination playground. Stage one includes, renewed playground, toilet block, basketball courts and skatepark. The project team updated the local board in a workshop July 2023 - stage one works are currently in delivery and expected to be completed in October 2023.

· Seaside Park - renew carpark and accessway. The Seaside Park carpark construction has been completed and the asset handed over back to operations. The accessway construction plan as part of the next stage has been deferred to February/March 2024 as agreed with the Resilient Land & Coasts team to allow for the seawall construction to be completed prior.

· Kiwi Esplanade (Bird Refuge & Pump House) - renew toilet and changing room facilities. The Kiwi Esplanade toilet block upgrade is progressing well and plans to paint a mural on the refurbished toilet block is being looked at. Local board views will be sought on this in the coming months as the project is progressed.

· Thomas Clements Senior Citizens Hall - refurbish facility. The roof replacement for the Thomas Clements facility has been completed. Internal renovation and painting of the interior is being undertaken and planned to be completed by end of December 2023.

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Capital Expenditure – all projects

Project Name	Year To Date ($000)			Full Year ($000)
Project Name	Actual	Revised Budget	Variance	Revised Budget	Annual Plan
Local asset renewals programme	477	527	50	5,332	5,555
Town centre canopy (Mangere)	6	108	102	679	0
Playscape development	163	42	(121)	265	0
Minor Fixed Asset	30	8	(22)	90	90
Sport development	0	8	8	50	0
Local improvement projects (LIPS)	0	4	4	38	38
CCTV cameras	48	0	(48)	0	0
Leisure facility equipment renewals	7	0	(7)	0	0
Mangere Centre Park	25	0	(25)	0	0
Locally driven initiatives (LDI Capex)	84	0	(84)	12	167
Total Community services	839	697	(143)	6,467	5,850
Parks - Coastal asset renewals	2	44	42	219	0
Total Environmental services	2	44	42	219	0
Town Centre Revitalisation	4	3	(1)	23	23
Total Planning	4	3	(1)	23	23
Total	845	744	(102)	6,708	5,872