Notice of Meeting:
I hereby give notice that an ordinary meeting of the Finance
and Council Controlled Organisations Committee will be held on:
Date: Tuesday
10 July 2018
Time: 1.30
pm (or at the conclusion of the previous meeting, whichever is later)
Venue: Edinburgh
Room, Municipal Chambers, The Octagon, Dunedin
Sue Bidrose
Finance and Council Controlled Organisations Committee
PUBLIC AGENDA
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Chairperson
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Cr Mike Lord
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Deputy Chairperson
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Cr Doug Hall
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Members
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Cr David Benson-Pope
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Mayor Dave Cull
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Cr Rachel Elder
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Cr Christine Garey
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Cr Aaron Hawkins
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Cr Marie Laufiso
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Cr Damian Newell
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Cr Jim O'Malley
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Chris Staynes
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Cr Conrad Stedman
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Cr Lee Vandervis
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Cr Andrew Whiley
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Cr Kate Wilson
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Senior Officer Dave
Tombs, General Manager Finance and Commercial
Governance Support Officer Jenny
Lapham
Jenny Lapham
Governance Support Officer
Telephone: 03 477 4000
Jenny.Lapham@dcc.govt.nz
www.dunedin.govt.nz
Note: Reports
and recommendations contained in this agenda are not to be considered as
Council policy until adopted.
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Finance and Council
Controlled Organisations Committee
10 July 2018
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ITEM TABLE OF CONTENTS PAGE
1 Public
Forum 4
2 Apologies 4
3 Confirmation
of Agenda 4
4 Declaration
of Interest 5
Part
A Reports (Committee has power to decide these matters)
5 Financial
Result - Period Ended 31 May 2018 15
6 Items
for Consideration by the Chair 37
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Finance and Council
Controlled Organisations Committee
10 July 2018
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Part
A Reports
Financial Result - Period Ended 31 May 2018
Department: Finance
EXECUTIVE SUMMARY
1 This
report provides the financial results for the period ended 31 May 2018 and the
financial position as at that date.
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RECOMMENDATIONS
That the Committee:
a) Notes the
Financial Performance for the period ended 31 May 2018 and the Financial
Position as at 31 May 2018.
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BACKGROUND
2 This
report provides a commentary of the financial performance of Council for the
period ended 31 May 2018 and the financial position as at that date.
DISCUSSION
3 Section
1 to this Report shows that Council has a YTD Net Deficit (excluding Waipori)
of $18.9m which was $10.4m worse than the budgeted deficit figure of
$8.5m. Various events occur throughout each financial year that cause
variances between the actual operating surplus/deficit and the budgeted
operating surplus/deficit.
4 Commentary
on Year to Date Result (Table in Section 1)
The unfavourable YTD variance against
budget was due to the following:
· $11.471
million higher than expected asset operations and maintenance expenditure
primarily due to emergency repair work associated with the July 2017 flood
event, and maintenance costs across the Property portfolio.
· $3.578
million higher fees & levies costs. This included consultancy costs in
Property covering for vacant positions and a high volume of building survey and
inspection work undertaken to inform maintenance and renewal programmes.
In addition Building Services expenditure is higher than expected to ensure
consenting activity meets the required statutory deadlines. A number of
other departments had higher than expected expenditure associated with the
development of asset renewal plans (eg: Logan Park Precinct, Dunedin Ice
Stadium), system & process reviews and coverage for position vacancies
including procurement activities.
· $2.071
million higher than expected personnel costs due to unbudgeted recruitment
costs to resource activities across Council, FTE's not being filly budgeted for
and higher than budgeted training costs.
· $828k
higher materials, supplies & services expenditure. This included
costs associated with the 2GP, flood relief expenditure and contracted services
to assist in the management of the property portfolio.
5 These
unfavourable YTD variances were partially offset by:
· $4.573
million – higher than expected Other Operating Revenue. This
favourable variance was mainly due to: Waste and Environmental Solutions
revenue was greater than expected with additional tonnage through the Green
Island landfill being the overflow from the closure of the Fairfield Landfill,
higher than expected building consent activity in Regulatory Services and
Parking revenue being higher than expected due to increased metered activity.
· $1.512
million – favourable interest expenditure driven by the lower debt level
and favourable floating interest rate.
· $1.022
million higher than expected development contributions particularly in relation
to developments in Mosgiel.
1
· $507k
higher than expected grants revenue in Transport due to the emergency work
discussed above, partially offset by lower capital subsidies due to delays
being experienced in the capital programme (including cycleways and Peninsula
projects).
6 YTD
Capital expenditure was less than budget by $23.051 million. Project delays have
arisen across a number of portfolios while project scoping and design is
finalised. Capital Expenditure levels have been increasing over the past
few months and may’s actual Capital Expenditure slightly exceed the
budgeted amount. The YTD Capital Expenditure figure of $36.4m is
significantly higher than the corresponding figure last year ($29.3m).
7 Total
Council debt as at 31 May 2018 was $198.885 million or $16.017 million lower
than budget. This variance reflected delayed expenditure on capital projects,
partially offset by the higher level of operating expenditure discussed above.
OPTIONS
8 Not
applicable.
NEXT STEPS
9 Not
applicable.
Signatories
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Author:
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Gavin Logie - Financial Controller
Lawrie Warwood - Financial Analyst
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Authoriser:
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Dave Tombs - General Manager Finance and Commercial
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Attachments
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Title
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Page
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a
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Summary Financial
Information
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20
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b
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Statement of Financial
Performance
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21
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c
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Statement of Financial
Position
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22
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d
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Statement of Cashflows
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23
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e
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Capital Expenditure
Summary
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24
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f
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Borrowing &
Investment Policy
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25
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g
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Statement of Public
Debt
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26
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h
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Summary of Operating
Variances
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27
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i
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Financial Review
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28
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SUMMARY OF CONSIDERATIONS
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Fit with purpose
of Local Government
The financial expenditure reported in this report relates
to providing local infrastructure, public services and regulatory functions
for the community.
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Fit with strategic
framework
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Contributes
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Detracts
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Not applicable
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Social Wellbeing Strategy
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☐
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☐
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☒
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Economic Development Strategy
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☐
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☐
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☒
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Environment Strategy
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☐
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☐
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☒
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Arts and Culture Strategy
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☐
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☐
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☒
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3 Waters Strategy
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☐
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☐
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☒
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Spatial Plan
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☐
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☐
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☒
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Integrated Transport Strategy
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☐
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☐
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☒
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Parks and Recreation Strategy
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☐
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☐
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☒
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Other strategic projects/policies/plans
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☐
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☐
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☒
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This report has no direct contribution to the Strategic
Framework, although the financial expenditure reported in this report has
contributed to all of the strategies.
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Māori Impact
Statement
There are no known impacts for tangata whenua.
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Sustainability
There are no known implications for sustainability.
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LTP/Annual Plan /
Financial Strategy /Infrastructure Strategy
This report fulfils the internal financial reporting
requirements for Council.
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Financial
considerations
Not applicable – reporting only.
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Significance
Not applicable – reporting only.
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Engagement –
external
There has been no external engagement.
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Engagement -
internal
The report is prepared as a summary for the individual
department financial reports.
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Risks: Legal /
Health and Safety etc.
There are no known risks.
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Conflict of
Interest
There are no known conflicts of interest.
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Community Boards
There are no known implications for Community Boards.
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