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 20 November 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

Chief Executive Officer

 

Finance and Council Controlled Organisations Committee

PUBLIC AGENDA

 

MEMBERSHIP

 

Chairperson

Cr Mike Lord

 

Deputy Chairperson

Cr Doug Hall

 

 

Members

Cr David Benson-Pope

Dave Cull

 

Cr Rachel Elder

Cr Christine Garey

 

Cr Aaron Hawkins

Cr Marie Laufiso

 

Cr Damian Newell

Cr Jim O'Malley

 

Cr Chris Staynes

Cr Conrad Stedman

 

Cr Lee Vandervis

Cr Andrew Whiley

 

Cr Kate Wilson

 

 

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.

 


Finance and Council Controlled Organisations Committee

20 November 2018

 

 

 

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 30 September 2018                                           15

6        Dunedin City Holdings Limited Parent Financials - Year Ended 30 June 2018            34

7        Waipori Fund - Quarter Ending September 2018                                               40

8        Items for Consideration by the Chair                                                              47             

 

 


Finance and Council Controlled Organisations Committee

20 November 2018

 

 

 

1     Public Forum

At the close of the agenda no requests for public forum had been received.

2     Apologies

At the close of the agenda no apologies had been received.

3     Confirmation of agenda

Note: Any additions must be approved by resolution with an explanation as to why they cannot be delayed until a future meeting.


Finance and Council Controlled Organisations Committee

20 November 2018

 

 

Declaration of Interest

 

  

 

EXECUTIVE SUMMARY

1.     Members are reminded of the need to stand aside from decision-making when a conflict arises between their role as an elected representative and any private or other external interest they might have.

2.     Elected members are reminded to update their register of interests as soon as practicable, including amending the register at this meeting if necessary.

 

RECOMMENDATIONS

That the Committee:

a)     Notes/Amends if necessary the Elected Members' Interest Register attached as Attachment A; and

b)     Confirms/Amends the proposed management plan for Elected Members' Interests.

 

 

Attachments

 

Title

Page

a

Register of Interest

7

  



Finance and Council Controlled Organisations Committee

20 November 2018

 

 

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Finance and Council Controlled Organisations Committee

20 November 2018

 

 

Part A Reports

 

Financial Result - Period Ended 30 September 2018

Department: Finance

 

 

 

 

 

EXECUTIVE SUMMARY

1      This report provides the financial results for the period ended 30 September 2018 and the financial position as at that date.

RECOMMENDATIONS

That the Committee:

a)     Notes the Financial Performance for the period ended 30 September 2018 and the Financial Position as at 30 September 2018.

 

 

BACKGROUND

2      This report provides the financial statements for the period ended 30 September 2018.  It includes reports on: financial performance, financial position, cashflows and capital expenditure.  The operating result is also shown by group, including analysis by revenue and expenditure type.

DISCUSSION

3      Revenue was ahead of budget year to date primarily due to additional NZTA grant income resulting from higher than expected capital expenditure on roading projects – cycleways, peninsula widening and July 2017 flood reinstatement.

4      Expenditure was favourable to budget due to delayed timing of grant disbursements ($1.137 million), an overall underspend on operations and maintenance costs and lower than expected interest due to the lower level of debt and a favourable floating interest rate.  These favourable variances were partially offset by higher depreciation resulting from asset revaluations carried over from 2017/18 – Three Waters and Transport.

5      The year to date Waipori result was favourable with higher than expected fair value gains across a number of investment portfolios.  There was however a slow-down in the current month as global markets stall.

6      Capital expenditure was running ahead of budget, particularly driven by activity in the infrastructure group.

OPTIONS

7      Not applicable.

NEXT STEPS

8      Not applicable.

 

Signatories

Author:

Gavin Logie - Financial Controller

Lawrie Warwood - Financial Analyst

Authoriser:

Dave Tombs - General Manager Finance and Commercial

Attachments

 

Title

Page

a

Summary Financial Information

19

b

Statement of Financial Performance

20

c

Statement of Financial Position

21

d

Statement of Cashflows

22

e

Capital Expenditure Summary

23

f

Borrowing and Investment Policy

24

g

Summary of Operating Variances

25

h

Financial Report

27

 

SUMMARY OF CONSIDERATIONS

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.

Fit with strategic framework

 

Contributes

Detracts

Not applicable

Social Wellbeing Strategy

Economic Development Strategy

Environment Strategy

Arts and Culture Strategy

3 Waters Strategy

Spatial Plan

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

 

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.

Māori Impact Statement

There are no known impacts for tangata whenua.

Sustainability

There are no known implications for sustainability.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report fulfils the internal financial reporting requirements for Council.

Financial considerations

Not applicable – reporting only.

Significance

Not applicable – reporting only.

Engagement – external

There has been no external engagement.

Engagement - internal

The report is prepared as a summary for the individual department financial reports.

Risks: Legal / Health and Safety etc.

There are no known risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

There are no known implications for Community Boards.

 

 


Finance and Council Controlled Organisations Committee

20 November 2018

 

 

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Finance and Council Controlled Organisations Committee

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Finance and Council Controlled Organisations Committee

20 November 2018

 

 

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Finance and Council Controlled Organisations Committee

20 November 2018

 

 

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Finance and Council Controlled Organisations Committee

20 November 2018

 

 

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Finance and Council Controlled Organisations Committee

20 November 2018

 

 

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Finance and Council Controlled Organisations Committee

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20 November 2018

 

 

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Finance and Council Controlled Organisations Committee

20 November 2018

 

 

 

Dunedin City Holdings Limited Parent Financials - Year Ended 30 June 2018

Department: Finance

 

 

 

 

 

EXECUTIVE SUMMARY

1      This report provides the financial results for the year ended 30 June 2018 and the financial position as at that date for the Dunedin City Holdings Limited parent company.

RECOMMENDATIONS

That the Committee:

a)     Notes the Financial Performance for the year ended 30 June 2018 and the Financial Position as at 30 June 2018 for Dunedin City Holdings Limited Parent Company.

 

 

BACKGROUND

2      This report provides a commentary of the financial performance of Dunedin City Holdings Limited (Parent) for the year ended 30 June 2018 and the financial position as at that date.

DISCUSSION

3      The net surplus for the year was $2.817 million or $2.982 million greater than budget.

4      The variance against budget was primarily due to higher than expected dividend income from City Forests Limited.

5      Investment in Subsidiaries as at 30 June was represented as follows:

6      Total term loans as at 30 June 2018 was $23.060 million or $5.940 million lower than budget.  This favourable variance was due to the additional dividend income discussed above and a lower than expected cash balance as at 30 June 2018.

OPTIONS

7      Not applicable.

NEXT STEPS

8      Not applicable.

 

Signatories

Authoriser:

Dave Tombs - General Manager Finance and Commercial

Attachments

 

Title

Page

a

Financial Statements June 2018

37

 

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

The financial expenditure reported in this report relates to providing local infrastructure, public services, commercial activities and regulatory functions for the community.

Fit with strategic framework

 

Contributes

Detracts

Not applicable

Social Wellbeing Strategy

Economic Development Strategy

Environment Strategy

Arts and Culture Strategy

3 Waters Strategy

Spatial Plan

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

 

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.

Māori Impact Statement

There are no known impacts for tangata whenua.

Sustainability

There are no known implications for sustainability.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report fulfils the DCHL parent company financial reporting requirements for Council.

Financial considerations

Not applicable – reporting only.

Significance

Not applicable – reporting only.

Engagement – external

There has been no external engagement.

Engagement - internal

The report is prepared based on information provided by DCHL.

Risks: Legal / Health and Safety etc.

There are no known risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

There are no known implications for Community Boards.

 

 


Finance and Council Controlled Organisations Committee

20 November 2018

 

 

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Finance and Council Controlled Organisations Committee

20 November 2018

 

 

 

Waipori Fund - Quarter Ending September 2018

Department: Finance

 

 

 

 

EXECUTIVE SUMMARY

1      The attached report from Dunedin City Treasury Limited provides information on the results of the Waipori Fund for the quarter ending 30 September 2018.

RECOMMENDATIONS

That the Committee:

a)     Notes the report from Dunedin City Treasury Limited on the Waipori Fund for the quarter ending 30 September 2018.

 

 

BACKGROUND

2      Not applicable.

DISCUSSION

3      Not applicable.

OPTIONS

4      Not applicable.

NEXT STEPS

5      Not applicable.

 

 

Signatories

Author:

Richard Davey - Treasury Manager

Authoriser:

Dave Tombs - General Manager Finance and Commercial

Attachments

 

Title

Page

a

Waipori Report September 2018

43

 SUMMARY OF CONSIDERATIONS

 

 

Fit with purpose of Local Government

This report relates to providing local infrastructure, public services and regulatory functions for the community.

 

 

Fit with strategic framework

 

Contributes

Detracts

Not applicable

Social Wellbeing Strategy

Economic Development Strategy

Environment Strategy

Arts and Culture Strategy

3 Waters Strategy

Spatial Plan

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

 

This report has no direct contribution to the Strategic Framework.

 

Māori Impact Statement

There are no known impacts on tangata whenua.

 

Sustainability

There are no known implications for sustainability.

 

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

The report fulfils the financial reporting requirements for Council.

 

Financial considerations

Not applicable – reporting only.

 

Significance

Not applicable – reporting only.

 

Engagement – external

This report has been prepared for and approved by the Board of Dunedin City Treasury Limited.

 

Engagement - internal

This report has been prepared for the Board of Dunedin City Treasury Limited.

 

Risks: Legal / Health and Safety etc.

There are no known risks.

 

Conflict of Interest

There are no known conflicts of interest.

 

Community Boards

There are no known implications for Community Boards.

 

 



Finance and Council Controlled Organisations Committee

20 November 2018

 

 

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Finance and Council Controlled Organisations Committee

20 November 2018

 

 

Items for Consideration by the Chair