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 8 March 2022
Time: 1.00 pm
Venue: Via Audio Visual Link
Sandy Graham
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 Sophie Barker |
Cr David Benson-Pope |
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Cr Rachel Elder |
Cr Christine Garey |
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Cr Carmen Houlahan |
Cr Marie Laufiso |
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Cr Jim O'Malley |
Cr Jules Radich |
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Cr Chris Staynes |
Cr Lee Vandervis |
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Cr Steve Walker |
Cr Andrew Whiley |
Senior Officer Gavin Logie, Chief Financial Officer
Governance Support Officer Wendy Collard
Wendy Collard
Governance Support Officer
Telephone: 03 477 4000
Wendy.Collard@dcc.govt.nz
The meeting will be live streamed on the Council’s YouTube page: https://youtu.be/g3qzXxs3loY
Note: Reports and recommendations contained in this agenda are not to be considered as Council policy until adopted.
Finance and Council Controlled Organisations Committee 8 March 2022 |
ITEM TABLE OF CONTENTS PAGE
1 Public Forum 4
2 Apologies 4
3 Confirmation of Agenda 4
4 Declaration of Interest 5
5 Confirmation of Minutes 15
5.1 Finance and Council Controlled Organisations Committee meeting-9 February 2022 15
Part A Reports (Committee has power to decide these matters)
6 Finance and Council Controlled Organisations Committee - Forward Work Programme 20
7 Financial Result - Period Ended 31 January 2022 25
8 2021 Annual Reports for the Dunedin City Holdings Ltd Group- under separate cover
9 Draft 2022/23 Statements of Intent - Dunedin City Holdings Limited Group Companies 41
10 Dunedin City Holdings Limited Parent Financials - Year ended 30 June 2021 163
11 Dunedin City Holdings Limited Group Companies - Interim Reports for the Six Months Ended 31 December 2021 169
Finance and Council Controlled Organisations Committee 8 March 2022 |
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.
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Finance and Council Controlled Organisations Committee 8 March 2022 |
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 |
Elected Members' Register of Interests |
6 |
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Finance and Council Controlled Organisations Committee 8 March 2022 |
Finance and Council Controlled Organisations Committee meeting - 9 February 2022
That the Committee: a) Confirms the public part of the minutes of the Finance and Council Controlled Organisations Committee meeting held on 09 February 2022 as a correct record.
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Attachments
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Title |
Page |
A⇩ |
Minutes of Finance and Council Controlled Organisations Committee meeting held on 9 February 2022 |
16 |
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Finance and Council Controlled Organisations Committee 8 March 2022 |
Finance and Council Controlled Organisations Committee
MINUTES
Minutes of an ordinary meeting of the Finance and Council Controlled Organisations Committee held in the Via Audio Visual Link on Wednesday 09 February 2022, commencing at 1.00 pm
PRESENT
Chairperson |
Cr Mike Lord
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Members |
Cr Sophie Barker |
Cr David Benson-Pope |
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Cr Rachel Elder |
Cr Christine Garey |
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Cr Carmen Houlahan |
Cr Marie Laufiso |
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Cr Jim O'Malley |
Cr Jules Radich |
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Cr Chris Staynes |
Cr Lee Vandervis |
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Cr Steve Walker |
Cr Andrew Whiley |
IN ATTENDANCE |
Sandy Graham (Chief Executive Officer), Gavin Logie (Chief Financial Officer) and Richard Davey (Treasury Manager) |
Governance Support Officer Wendy Collard
1 Public Forum
There was no Public Forum.
2 Apologies |
Moved (Cr Mike Lord/Cr Steve Walker): That the Committee:
Accepts the apology from Cr Doug Hall.
Motion carried |
3 Confirmation of agenda |
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Moved (Cr Mike Lord/Cr Christine Garey): That the Committee:
Confirms the agenda without addition or alteration
Motion carried |
4 Declarations of interest
Members were reminded of the need to stand aside from decision-making when a conflict arose between their role as an elected representative and any private or other external interest they might have.
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Moved (Cr Mike Lord/Cr Chris Staynes): That the Committee:
a) Notes the Elected Members' Interest Register attached as Attachment A; and b) Confirms the proposed management plan for Elected Members' Interests. Motion carried |
5 Confirmation of Minutes
5.1 Finance and Council Controlled Organisations Committee meeting - 3 November 2021 |
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Moved (Cr Steve Walker/Cr Carmen Houlahan): That the Committee:
a) Confirms the minutes of the Finance and Council Controlled Organisations Committee meeting held on 03 November 2021 as a correct record. Motion carried (FCCO/2022/001) |
Part A Reports
6 Finance and Council Controlled Organisations Committee - Forward Work Programme |
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A report from Corporate Policy provided the forward work programme for the 2022 year. The Chief Financial Officer (Gavin Logie) spoke to the report and responded to questions. |
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Moved (Cr Mike Lord/Cr Rachel Elder): That the Committee:
a) Notes the Finance and Council Controlled Organisations Committee forward work programme. Motion carried |
7 Actions from resolutions of Finance and Council Controlled Organisations Committee meetings |
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A report from Civic provided an update on the open and completed actions from resolutions of Finance and Council Controlled Organisations Committee meetings from the start of the triennium in October 2019. |
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Moved (Cr Mike Lord/Cr Chris Staynes): That the Committee:
a) Notes the Open Actions from resolutions of Finance and Council Controlled Organisations Committee meetings. Motion carried |
8 Waipori Fund - Quarter Ending December 2021 |
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A report from Dunedin City Treasury Limited provided information on the results of the Waipori Fund for the for the quarter ended 31 December 2021. The Chief Financial Officer (Gavin Logie) and the Treasury Manager (Richard Davey) spoke to the report and responded to questions.
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Moved (Cr Steve Walker/Cr Lee Vandervis): That the Committee:
a) Notes the report from Dunedin City Treasury Limited on the Waipori Fund for the quarter ended 31 December 2021. Motion carried |
9 Financial Result - Period Ended 31 December 2021 |
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A report from Finance provided provides the financial results for the six months ended 31 December 2021 and the financial position as at that date. The Chief Financial Officer (Gavin Logie) spoke to the report and responded to questions.
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Moved (Cr Mike Lord/Cr Chris Staynes): That the Committee:
a) Notes the Financial Performance for the period ended 31 December 2021 and the Financial Position as at that date. Motion carried |
10 Items for Consideration by the Chair |
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Cr Lee Vandervis requested a list of the different ways funding was provided to the stadium and stadium operation by Council.
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The meeting concluded at 1.33 pm.
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CHAIRPERSON
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Finance and Council Controlled Organisations Committee 8 March 2022 |
Finance and Council Controlled Organisations Committee - Forward Work Programme
Department: Corporate Policy
EXECUTIVE SUMMARY
1 The purpose of this report is to provide a regular update of the Finance and Council Controlled Organisations Committee forward work programme to show areas of activity, progress and expected timeframes for decision making across a range of areas of work. (Attachment A).
2 As this is an administrative report only, there are no options or Summary of Considerations.
That the Committee: a) Notes the Finance and Council Controlled Organisations Committee forward work programme as shown in Attachment A. |
discussion
3 The forward work programme is a regular agenda item which shows areas of activity, progress and expected timeframes for decision making across a range of areas of work.
4 As an update report, purple highlights show changes to timeframes. New items added to the schedule are highlighted in yellow. Items that have been completed or updated are shown as bold.
5 Months where no Committee meetings are scheduled are highlighted as grey.
NEXT STEPS
6 An updated report will be provided to future meetings of the Finance and Council Controlled Organisations Committee.
Signatories
Author: |
Sharon Bodeker - Corporate Planner |
Authoriser: |
Gavin Logie - Chief Financial Officer |
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Title |
Page |
⇩a |
Forward Work Programme - March 2022 |
23 |
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Finance and Council Controlled Organisations Committee 8 March 2022 |
Financial Result - Period Ended 31 January 2022
Department: Finance
EXECUTIVE SUMMARY
1 This report provides the financial results for the period ended 31 January 2022 and the financial position as at that date.
2 As this is an administrative report only, there are no options or Summary of Considerations.
That the Committee: a) Notes the Financial Performance for the period ended 31 January 2022 and the Financial Position as at that date.
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BACKGROUND
3 This report provides the financial statements for the period ended 31 January 2022. 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
4 Revenue was $190.131 million for the period or $390k lower than budget. The budget for September included the receipt of external funding for the new Mosgiel aquatics facility. A delay in the consenting process has meant the timing of this revenue has changed. In addition, year to date revenue was impacted by the recent nationwide lockdown including: Aquatic Services, Property, Parking, Landfill, and commercial water revenue. Grant revenue was also lower than expected due to the lower level of subsidised capital expenditure in Transport.
5 These unfavourable variances were partially offset by unbudgeted government funding for Economic Development activity and Three Waters stimulus projects, as well as increased revenue from resource consents and building services applications and inspections.
6 Expenditure was $195.236 million for the period or $29k greater than budget. Depreciation expenditure was higher than expected following asset revaluations as at 30 June 2021, impacting both asset replacement cost and asset useful lives.
7 Operational expenditure was higher than expected in part due to additional roading maintenance expenditure along with monies spent in Three Waters to delivery on the stimulus funded activities and Economic Development funded projects.
8 These unfavourable variances were partially offset by savings in personnel costs, delays in project expenditure and favourable interest expenditure due to a lower than forecast floating interest rate. Some expenditure lines were also impacted by reduced expenditure during the lockdown earlier in the financial year.
9 Equity markets were impacted in January as current world events create uncertainty. This resulted in negative revaluations across all equity portfolios held by the Waipori Fund. There has also been a year-to-date negative revaluation of fixed term investments as wholesale interest rates continue to rise.
10 Capital expenditure was $69.508 million for the period or 95.8% of the year-to-date budget. The level of spend reflected some project delays along with the impact of the nationwide lockdown in August. Three Waters expenditure was ahead of budget for the period with a number of large water and sewer renewal projects underway. Waste and Environmental expenditure was also ahead of budget with a number of projects underway, including the Waikouaiti transfer station and Smooth Hill landfill.
NEXT STEPS
11 Financial Result Reports continue be presented to future meetings of either the Finance and Council Controlled Organisation Committee or Council.
Signatories
Authoriser: |
Gavin Logie - Chief Financial Officer |
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Title |
Page |
⇩a |
Summary Financial Information |
29 |
⇩b |
Statement of Financial Performance |
30 |
⇩c |
Statement of Financial Position |
31 |
⇩d |
Statement of Cashflows |
32 |
⇩e |
Capital Expenditure Summary |
33 |
⇩f |
Summary of Operating Variances |
34 |
⇩g |
Financial Review |
35 |
Finance and Council Controlled Organisations Committee 8 March 2022 |
Draft 2022/23 Statements of Intent - Dunedin City Holdings Limited Group Companies
Department: Executive Leadership Team
EXECUTIVE SUMMARY
1 This report presents the draft 2022/23 Statements of Intent of Dunedin City Holdings Group companies for Council comments and/or noting.
That the Committee: a) Notes the draft 2022/23 Statements of Intent of Dunedin City Holdings Group companies; |
BACKGOUND
2 Council Controlled Organisations (CCOs) are required to deliver draft Statements of Intent (SOIs) to Council each year.
3 The SOI demonstrates accountability to the shareholder and the public by outlining the company’s activities and intentions for the next three financial years. The SOI provides the basis for the accountability of the directors to their shareholder for the performance of their organisation.
4 Draft SOIs have been prepared to reflect the Letter of Expectation (LoE) from the Dunedin City Council dated 16 December 2021.
DISCUSSION
5 The DCHL Report that is included in the attachments identifies key considerations that are relevant when reviewing these draft SOIs.
6 The financial projections contained in draft SOIs are subject to change and will be updated for inclusion in the final SOIs in June.
7 As a shareholder of DCHL the Council may provide comments on the draft SOIs to the Board of DCHL, who must consider any such comments. DCHL will also co-ordinate providing any feedback to subsidiary and/or associate companies.
8 Final SOIs must then be delivered to shareholders on or before 30 June 2022. SOIs are made available publicly on the DCC website on or before 1 July 2022.
OPTIONS
9 Not applicable.
NEXT STEPS
10 Elected Members will be able to provide feedback via email or through a workshop. Feedback will be required by the Chief Financial Officer by 31 March 2022.
11 The feedback will be collated into a report to Council on 27 April 2022 for Council to consider if it wishes to amend the SOIs. Council’s decisions at that meeting will then be provided to DCHL by the statutory deadline of 1 May 2022.
12 Financial projections will be updated prior to the completion of final SOIs in June 2022.
Signatories
Author: |
Gavin Logie - Chief Financial Officer |
Authoriser: |
Sandy Graham - Chief Executive Officer |
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Title |
Page |
⇩a |
DCHL:Cover Report |
46 |
⇩b |
Aurora Energy Ltd - Draft Statement of Intent |
54 |
⇩c |
City Forest Ltd - Draft Statement of Intent |
70 |
⇩d |
Delta Utility Services Ltd - Draft Statement of Intent |
83 |
⇩e |
Dunedin City Holdings Ltd - Draft Statement of Intent |
97 |
⇩f |
Dunedin City Treasury Ltd - Draft Statement of Intent |
107 |
⇩g |
Dunedin International Airport Ltd - Draft Statement of Intent |
114 |
⇩h |
Dunedin Railways Ltd - Draft Statement of Intent |
132 |
⇩i |
Dunedin Stadium Property Ltd - Draft Statement of Intent |
139 |
⇩j |
Dunedin Venues Management Ltd - Draft Statement of Intent |
146 |
⇩k |
DCHL Letter of Expectation - December 2021 |
160 |
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
All draft SOIs take Council’s Strategic Framework, and the themes of Council’s Letter of Expectation to DCHL into account. |
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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 The financial forecasts within the DCHL SOI (page 6) shows annual levels of interest ($5.9m) and dividend ($Nil) payable to DCC that are consistent with the DCC Long Term Plan. |
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Financial considerations Refer “LTP/Annual Plan/Financial Strategy/Infrastructure Strategy” section above. Also note that final projections (including group debt) will be updated prior to finalisation of the SoIs. |
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Significance This matter is considered Low in terms of Council’s Significance and Engagement Policy. |
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Engagement – external There has been no external engagement outside of DCHL Group. |
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Engagement - internal There has been no internal engagement to date. Feedback on the SOIs will be provided by elected members and considered by Council prior to being conveyed to 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 8 March 2022 |
Dunedin City Holdings Limited Parent Financials - Year ended 30 June 2021
Department: Executive Leadership Team
EXECUTIVE SUMMARY
1 This report provides the financial results for the year ended 30 June 2021 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 2021 and the Financial Position as at 30 June 2021 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 2021 and the financial position as at that date.
DISCUSSION
3 The net surplus for the year was $2.403 million or $3.961 million better than budget.
4 The favourable result was driven by a higher than expected dividend from City Forests Limited.
5 Note that the 2020 deficit included an impairment of the investment held in Dunedin Railway Limited following a capital restructure of that company.
6 Investment in Subsidiaries as at 30 June was represented as follows:
OPTIONS
7 Not applicable.
NEXT STEPS
8 Not applicable.
Signatories
Authoriser: |
Gavin Logie - Chief Financial Officer |
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Title |
Page |
⇩a |
DCHL Parent Financial Statements 30.06.2021 |
167 |
Finance and Council Controlled Organisations Committee 8 March 2022 |
Dunedin City Holdings Limited Group Companies - Interim Reports for the Six Months Ended 31 December 2021
Department: Executive Leadership Team
EXECUTIVE SUMMARY
1 Please find attached the interim reports for the six months ended 31 December 2021 for the Dunedin City Holdings Limited (DCHL) Group Companies.
That the Committee: a) Notes the Dunedin City Holdings Limited Group Companies Interim Reports for the six months ended 31 December 2021.
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BACKGROUND
2 Not applicable.
DISCUSSION
3 Not applicable.
OPTIONS
4 Not applicable.
NEXT STEPS
5 Not applicable.
Signatories
Author: |
Gavin Logie - Chief Financial Officer |
Authoriser: |
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|
Title |
Page |
⇩a |
DCHL Cover Report |
172 |
⇩b |
Aurora Energy Ltd - half yearly report to 31 December 2021 |
175 |
⇩c |
City Forests Ltd - half yearly report to 31 December 2021 |
195 |
⇩d |
Delta Utitily Services Ltd - half yearly report to 31 December 2021 |
217 |
⇩e |
Dunedin City Holdings Ltd Group - half yearly report to 31 December 2021 |
237 |
⇩f |
Dunedin City Treasury Ltd - half yearly report to 31 December 2021 |
263 |
⇩g |
Dunedin International Airport Ltd - half yearly report to 31 December 2021 |
280 |
⇩h |
Dunedin Railways Ltd - half yearly report to 31 December 2021 |
290 |
⇩i |
Dunedin Stadium Property Ltd - half yearly report to 31 December 2021 |
302 |
⇩j |
Dunedin Venues Management Ltd - half yearly report to 31 December 2021 |
315 |