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 |
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Deputy Chairperson |
Cr Doug Hall
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Members |
Cr David Benson-Pope |
Dave Cull |
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Cr Rachel Elder |
Cr Christine Garey |
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Cr Aaron Hawkins |
Cr Marie Laufiso |
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Cr Damian Newell |
Cr Jim O'Malley |
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Cr Chris Staynes |
Cr Conrad Stedman |
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Cr Lee Vandervis |
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
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 |
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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 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 |
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At the close of the agenda no requests for public forum had been received.
At the close of the agenda no apologies had been received.
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 |
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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.
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
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Title |
Page |
⇩a |
Register of Interest |
7 |
Finance and Council Controlled Organisations Committee 20 November 2018 |
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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.
That the Committee: a) Notes the Financial Performance for the period ended 30 September 2018 and the Financial Position as at 30 September 2018.
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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 |
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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 |
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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
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. |
Finance and Council Controlled Organisations Committee 20 November 2018 |
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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.
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.
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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 |
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Title |
Page |
⇩a |
Financial Statements June 2018 |
37 |
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, commercial activities and regulatory functions for the community. |
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Fit with strategic framework
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 DCHL parent company 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 based on information provided by DCHL. |
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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. |
Finance and Council Controlled Organisations Committee 20 November 2018 |
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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.
That the Committee: a) Notes the report from Dunedin City Treasury Limited on the Waipori Fund for the quarter ending 30 September 2018.
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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 |
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Title |
Page |
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⇩a |
Waipori Report September 2018 |
43 |
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SUMMARY OF CONSIDERATIONS
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Fit with purpose of Local Government This report relates to providing local infrastructure, public services and regulatory functions for the community.
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Fit with strategic framework
This report has no direct contribution to the Strategic Framework. |
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Māori Impact Statement There are no known impacts on 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 The report fulfils the 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 This report has been prepared for and approved by the Board of Dunedin City Treasury Limited. |
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Engagement - internal This report has been prepared for the Board of Dunedin City Treasury Limited. |
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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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