Notice of Meeting:
I hereby give notice that an ordinary meeting of the Finance and Council Controlled Organisations Committee will be held on:
Date: Thursday 23 March 2023
Time: 1:00pm
Venue: Council Chamber, Level 2, Dunedin Public Art Gallery, The Octagon, Dunedin
Sandy Graham
Chief Executive Officer
Finance and Council Controlled Organisations Committee
PUBLIC AGENDA
MEMBERSHIP
Chairperson |
Cr Lee Vandervis |
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Deputy Chairperson |
Cr Cherry Lucas |
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Members |
Cr Bill Acklin |
Cr Sophie Barker |
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Cr David Benson-Pope |
Cr Christine Garey |
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Cr Kevin Gilbert |
Cr Carmen Houlahan |
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Cr Marie Laufiso |
Cr Mandy Mayhem |
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Cr Jim O'Malley |
Mayor Jules Radich |
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Cr Steve Walker |
Cr Brent Weatherall |
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Cr Andrew Whiley |
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Senior Officer Gavin Logie, Chief Financial Officer
Governance Support Officer Lauren Riddle
Lauren Riddle
Governance Support Officer
Telephone: 03 477 4000
governance.support@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 23 March 2023 |
ITEM TABLE OF CONTENTS PAGE
1 Public Forum 4
2 Apologies 4
3 Declaration of Interest 5
4 Confirmation of Minutes 14
4.1 Finance and Council Controlled Organisations Committee meeting - 14 February 2023 14
Part A Reports (Committee has power to decide these matters)
5 Finance and Council Controlled Organisations Committee Forward Work Programme 19
6 Audit and Risk Subcommittee Overview 23
7 Financial Result - Period Ended 28 February 2023 24
8 Dunedin City Holdings Limited Group Update - Quarter Ending 31 December 2022 40
9 Dunedin City Holdings Limited Group Companies - Interim Reports for the Six Months Ended 31 December 2022 51
10 Draft 2023/24 Statements of Intent - Dunedin City Holdings Limited Group Companies 212
Finance and Council Controlled Organisations Committee 23 March 2023 |
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.
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Finance and Council Controlled Organisations Committee 23 March 2023 |
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 as at 10 March 2023 |
6 |
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Finance and Council Controlled Organisations Committee 23 March 2023 |
Finance and Council Controlled Organisations Committee meeting - 14 February 2023
That the Committee: a) Confirms the minutes of the Finance and Council Controlled Organisations Committee meeting held on 14 February 2023 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 14 February 2023 |
15 |
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Finance and Council Controlled Organisations Committee 23 March 2023 |
Finance and Council Controlled Organisations Committee
MINUTES
Minutes of an ordinary meeting of the Finance and Council Controlled Organisations Committee held in the Council Chamber, Level 2, Dunedin Public Art Gallery, The Octagon, Dunedin on Tuesday 14 February 2023, commencing at 1:07pm
PRESENT
Chairperson |
Cr Lee Vandervis |
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Deputy Chairperson |
Cr Cherry Lucas |
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Members |
Cr Bill Acklin |
Cr Sophie Barker |
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Cr David Benson-Pope |
Cr Christine Garey |
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Cr Kevin Gilbert |
Cr Carmen Houlahan |
|
Cr Marie Laufiso |
Cr Mandy Mayhem |
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Cr Jim O'Malley |
Mayor Jules Radich |
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Cr Steve Walker |
Cr Brent Weatherall |
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Cr Andrew Whiley |
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IN ATTENDANCE |
Sandy Graham (Chief Executive Officer). |
Governance Support Officer Lauren Riddle
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Moved (Cr Lee Vandervis/Cr David Benson-Pope): That the Committee:
Adjourns the meeting.
Motion carried |
The meeting adjourned at 1:07pm and reconvened at 1:40pm.
Cr Vandervis welcomed all attendees.
1 Public Forum
There was no Public Forum.
2 Apologies |
There were no apologies. |
3 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.
Cr Vandervis advised his roles as Chair of the Finance Council Controlled Organisations and Chair of the Disability Issues Advisory Group to be included in the Elected Members’ Interest Register.
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Moved (Cr Lee Vandervis/Cr Bill Acklin): That the Committee:
a) Amends the Elected Members' Interest Register b) Amends the proposed management plan for Elected Members' Interests. Motion carried |
Part A Reports
4 Finance and Council Controlled Organisations Committee Forward Work Programme |
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A report from Civic provided an update on the Committee’s forward work programme in regard to areas of activity, progress and expected timeframes for decision making across a range of areas of work. Sandy Graham, CEO responded to members’ questions.
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Moved (Cr Lee Vandervis/Mayor Jules Radich): That the Committee:
a) Notes the Finance and Council Controlled Organisations Committee forward work programme as shown in Attachment A. Motion carried (FCCO/2023/001) |
6 Waipori Fund - Quarter Ending December 2022 |
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A report from Finance provided information on the results of the Waipori Fund for the quarter ended 31 December 2022. The Treasurer (Richard Davey) spoke to the report and responded to members’ questions. |
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Moved (Cr Lee Vandervis/Cr Andrew Whiley): That the Committee:
a) Notes the report from Dunedin City Treasury Limited on the Waipori Fund for the quarter ended 31 December 2022. Motion carried (FCCO/2023/003) |
The meeting concluded at 2:00pm.
..............................................
CHAIRPERSON
Finance and Council Controlled Organisations Committee 23 March 2023 |
Finance and Council Controlled Organisations Committee Forward Work Programme
Department: Civic
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 will be 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 will be highlighted in yellow. Items that have been completed or updated are shown as bold.
Signatories
Author: |
Lauren Riddle - Governance Support Officer |
Authoriser: |
Sharon Bodeker - Manager Governance |
|
Title |
Page |
⇩a |
Finance CCO - Forward Work Programme - March 2023 |
21 |
Finance and Council Controlled Organisations Committee 23 March 2023 |
Audit and Risk Subcommittee Overview
Department: Civic
EXECUTIVE SUMMARY
1 Warren Allen, Chairperson of the Audit and Risk Subcommittee will be in attendance to provide an overview of the Audit and Risk Subcommittee.
2 As this report is an administrative report only, there are no options or Summary of Considerations.
That the Committee: a) Notes the Audit and Risk Subcommittee update. |
Signatories
Author: |
Lauren Riddle - Governance Support Officer |
Authoriser: |
Sharon Bodeker - Manager Governance |
There are no attachments for this report.
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Finance and Council Controlled Organisations Committee 23 March 2023 |
Financial Result - Period Ended 28 February 2023
Department: Finance
EXECUTIVE SUMMARY
1 This report provides the financial results for the period ended 28 February 2023 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 28 February 2023 and the Financial Position as at that date. |
BACKGROUND
3 This report provides the financial statements for the period ended 28 February 2023. 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 $233.939 million for the period or $3.431 million greater than budget. This was primarily due to unbudgeted government grants for Economic Development, as well as increased revenue for Aquatic Services, landfill revenue, and roading maintenance and capital expenditure subsidies.
5 These favourable variances were partially offset by lower than expected revenue from parking operations, water sales and water reform project subsidy revenue.
6 Expenditure was $267.683 million for the period or $28.213 million greater than budget. Operational expenditure was greater than expected due to additional roading maintenance expenditure (see revenue above), landfill contract and Ministry levies costs, along with costs associated with applying to extend the Green Island landfill consents and monies spent for government funded projects in Economic Development.
7 Depreciation
expenditure was also higher than expected following asset revaluations as at
30 June 2022, impacting asset replacement cost (Three Waters and
Transport). The level of uplift for Three Waters reflects a change in
valuation methodology away from historical indexed costs to a fairer estimate
of current replacement cost.
8 These unfavourable variances were partially offset by savings in personnel costs and delays for some project expenditure.
9 The Waipori Fund saw positive movement in international equity and domestic property markets for the month, while other NZ equities saw a minor fall. There continues to be negative valuations for fixed term investments on the back of the higher wholesale interest rates.
10 Capital expenditure was $134.805 million for the period or 109.5% of the year-to-date budget (71.1% of the full year budget). Transportation and 3 Waters renewals expenditure continues to track ahead of budget with a number of large water and sewer renewal projects underway. The level of spend in other areas of the organisation reflected delays for some projects.
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 |
27 |
⇩b |
Statement of Financial Performance |
28 |
⇩c |
Statement of Financial Position |
29 |
⇩d |
Statement of Cashflows |
30 |
⇩e |
Capital Expenditure Summary by Activity |
31 |
⇩f |
Summary of Operating Variances |
32 |
⇩g |
Financial Review |
33 |
Finance and Council Controlled Organisations Committee 23 March 2023 |
Dunedin City Holdings Limited Group Update - Quarter Ending 31 December 2022
Department: Executive Leadership Team
EXECUTIVE SUMMARY
1 This report provides a quarterly update for the period ended 31 December 2022 for the Dunedin City Holdings Limited (DCHL) Group.
That the Committee: a) Notes the Dunedin City Holdings Limited Group Quarterly Update for the period ended 31 December 2022. |
DISCUSSION
2 The attached DCHL quarterly report for the period ended 31 December 2022 provides an update for Councillors on the following:
· Quarter 2 financial results
· Areas of focus / activity for each company this quarter
· Progress towards achieving Statement of Intent measures
· Financial performance of the portfolio
· Group funding
OPTIONS
3 Not applicable.
NEXT STEPS
4 A quarterly update for the period ended 31 March 2023 for the Dunedin City Holdings Limited (DCHL) Group will be presented at a future meeting.
Signatories
Author: |
Gavin Logie - Chief Financial Officer |
Authoriser: |
Sandy Graham - Chief Executive Officer |
|
Title |
Page |
⇩a |
DCHL Group - Quarterly update for the period ended 31 December 2022 |
42 |
Finance and Council Controlled Organisations Committee 23 March 2023 |
Dunedin City Holdings Limited Group Companies - Interim Reports for the Six Months Ended 31 December 2022
Department: Executive Leadership Team
EXECUTIVE SUMMARY
1 Please find attached the interim reports for the six months ended 31 December 2022 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 2022.
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BACKGROUND
2 Not applicable.
DISCUSSION
3 Not applicable.
OPTIONS
4 Not applicable.
NEXT STEPS
5 Not applicable.
Signatories
Authoriser: |
Gavin Logie - Chief Financial Officer |
|
Title |
Page |
⇩a |
DCHL Cover Report |
53 |
⇩b |
DCHL Group - 6 month report to 31 December 2022 |
56 |
⇩c |
Aurora Energy Ltd - 6 month report to 31 December 2022 |
80 |
⇩d |
City Forests Ltd - 6 month report to 31 December 2022 |
98 |
⇩e |
Delta Utility Services Ltd - 6 month report to 31 December 2022 |
121 |
⇩f |
Dunedin International Airport Ltd - 6 month report to 31 December 2022 |
142 |
⇩g |
Dunedin City Treasury Ltd - 6 month report to 31 December 2022 |
153 |
⇩h |
Dunedin Railways Ltd - 6 month report to 31 December 2022 |
171 |
⇩i |
Dunedin Stadium Property Ltd - 6 month report to 31 December 2022 |
183 |
⇩j |
Dunedin Venues Management Ltd - 6 month report to 31 December 2022 |
196 |
Finance and Council Controlled Organisations Committee 23 March 2023 |
Draft 2023/24 Statements of Intent - Dunedin City Holdings Limited Group Companies
Department: Executive Leadership Team
EXECUTIVE SUMMARY
1 This report presents the draft 2023/24 Statements of Intent of Dunedin City Holdings Group companies for Council comments and/or noting.
That the Committee: a) Notes the draft 2023/24 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 1 February 2023.
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 2023. SOIs are made available publicly on the DCC website on or before 1 July 2023.
OPTIONS
9 There are no options.
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 Tuesday 11 April 2023.
11 The feedback will be collated into a report to Council on 27 April 2023 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 2023.
12 Financial projections will be updated prior to the completion of final SOIs in June 2023.
Signatories
Authoriser: |
Gavin Logie - Chief Financial Officer |
|
Title |
Page |
⇩a |
DCHL Cover Report |
216 |
⇩b |
Dunedin City Holdings Ltd - Draft Statement of Intent |
222 |
⇩c |
Aurora Energy Ltd - Draft Statement of Intent |
232 |
⇩d |
City Forests Ltd - Draft Statement of Intent |
247 |
⇩e |
Delta Utility Services Ltd - Draft Statement of Intent |
259 |
⇩f |
Dunedin City Treasury Ltd - Draft Statement of Intent |
273 |
⇩g |
Dunedin International Airport Ltd - Draft Statement of Intent |
280 |
⇩h |
Dunedin Railways Ltd - Draft Statement of Intent |
302 |
⇩i |
Dunedin Stadium Property Ltd - Draft Statement of Intent |
309 |
⇩j |
Dunedin Venues Management Ltd - Draft Statement of Intent |
316 |
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 Māori. |
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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 ($11.0m) payable to DCC that are consistent with the DCC Draft Annual Plan. |
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Financial considerations Refer “LTP/Annual Plan/Financial Strategy/Infrastructure Strategy” section above. Also note that final projections 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.
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