Agenda of Finance and Council Controlled Organisations Committee

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 14 November 2024

Time: 3:00pm

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
Deputy Chairperson	Cr Cherry Lucas
Members	Cr Bill Acklin	Cr Sophie Barker
	Cr David Benson-Pope	Cr Christine Garey
	Cr Kevin Gilbert	Cr Carmen Houlahan
	Cr Marie Laufiso	Cr Mandy Mayhem
	Cr Jim O'Malley	Mayor Jules Radich
	Cr Steve Walker	Cr Brent Weatherall
	Cr Andrew Whiley

Senior Officer Carolyn Allan, Chief Financial Officer

Governance Support Officer Lauren Riddle

Lauren Riddle

Governance Support Officer

Telephone: 03 477 4000

governance.support@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

14 November 2024

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 - 18 September 2024 15

Part A Reports (Committee has power to decide these matters)

6 Finance and Council Controlled Organisations Committee - Forward Work Programme 20

7 Financial Report - Period Ended 30 September 2024 23

8 Waipori Fund - Quarter ending 30 September 2024 51

9 Dunedin City Holdings Limited Group Update - Quarterly Report to 30 September 2024 59

10 Dunedin City Holdings Ltd and Subsidiaries Annual Reports 30 June 2024 71

11 Items for consideration by the Chair 72

Resolution to Exclude the Public 73

Finance and Council Controlled Organisations Committee

14 November 2024

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 Wednesday 18 September 2024, commencing at 10:00am.

PRESENT

Chairperson	Cr Lee Vandervis
Deputy Chairperson	Cr Cherry Lucas
Members	Cr Bill Acklin	Cr Sophie Barker
	Cr David Benson-Pope	Cr Christine Garey
	Cr Kevin Gilbert	Cr Carmen Houlahan
	Cr Steve Walker	Mayor Jules Radich
	Cr Andrew Whiley	Cr Brent Weatherall

IN ATTENDANCE

Carolyn Allan (Chief Financial Officer), Rob West (General Manager Corporate Services), Hayden McAuliffe (Financial Services Manager), Scott McLean (General Manager Climate and City Growth), David Ward (General Manager 3 Waters and Transition), Clare Sullivan (Governance Manager).

Governance Support Officer Lauren Riddle

1 Public Forum

There was no Public Forum.

2 Apologies

Moved (Cr Lee Vandervis/Cr Cherry Lucas):

That the Committee:

Accepts the apologies from Cr Marie Laufiso, Cr Jim O’Malley and Cr Mandy Mayhem.

Motion carried

3 Confirmation of agenda

Moved (Cr Lee Vandervis/Cr Cherry Lucas):

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.

There were no updates advised.

Moved (Cr Lee Vandervis/Cr Cherry Lucas):

That the Committee:

a) Notes the Elected Members' Interest Register 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 - 7 August 2024

Moved (Cr Cherry Lucas/Cr Andrew Whiley):

That the Committee:

Confirms the public part of the minutes of the Finance and Council Controlled Organisations Committee meeting held on 07 August 2024 as a correct record.

Motion carried (FCCO/2024/009)

Part A Reports

6 Finance and Council Controlled Organisations Committee - Forward Work Programme
	The report provided an update of the Finance and Council Controlled Organisations Committee forward work programme’s to show areas of activity, progress and expected timeframes for decision making across a range of areas of work.
	Carolyn Allan (Chief Financial Officer) spoke to the report and responded to questions.
	Moved (Cr Lee Vandervis/Cr Cherry Lucas): That the Committee: Notes the Finance and Council Controlled Organisations Committee forward work programme for September 2024. Motion carried (FCCO/2024/010)

7 Financial Report - Period ended 31 July 2024
	The report from Finance provided the financial results for the period ended 31 July 2024 and the financial position as at that date.
	Carolyn Allan (Chief Financial Officer) and Hayden McAuliffe (Financial Services Manager) spoke to the report and responded to questions.
	Moved (Cr Lee Vandervis/Cr Cherry Lucas): That the Committee: Notes the Financial Performance for the period ended 31 July 2024 and the Financial Position as at that date. Motion carried (FCCO/2024/011)

8 Items for consideration by the Chair
	There were no items for consideration by the Chair.

Resolution to Exclude the Public

Moved (Chairperson Lee Vandervis/Deputy Chairperson Cherry Lucas):

That the Committee:

Pursuant to the provisions of the Local Government Official Information and Meetings Act 1987, exclude the public from the following part of the proceedings of this meeting namely:

General subject of the matter to be considered

Reasons for passing this resolution in relation to each matter

Ground(s) under section 48(1) for the passing of this resolution

Reason for Confidentiality

C1 Finance and Council Controlled Organisations Committee meeting - 7 August 2024 - Public Excluded

S7(2)(a)

The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person.

S7(2)(h)

The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987, and the particular interest or interests protected by Section 6 or Section 7 of that Act, or Section 6 or Section 7 or Section 9 of the Official Information Act 1982, as the case may require, which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public are as shown above after each item.

Motion carried (FCCO/2024/012)

The meeting moved into public excluded session at 10:38 am.

..............................................

CHAIRPERSON

Finance and Council Controlled Organisations Committee

14 November 2024

Part A Reports

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). As this is an administrative report only, there are no options or Summary of Considerations.

RECOMMENDATIONS

That the Committee:

a) Notes the Finance and Council Controlled Organisations Committee forward work programme for October 2024.

DISCUSSION

2 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.

3 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:	Carolyn Allan - Chief Financial Officer

Attachments

	Title	Page
⇩a	Finance and CCO Committee forward work programme - Nov 2024	21

Finance and Council Controlled Organisations Committee

14 November 2024

Financial Report - Period Ended 30 September 2024

Department: Finance

EXECUTIVE SUMMARY

1 This report provides the financial results for the period ended 30 September 2024 and the financial position as at that date.

2 As this is an administrative report only, there are no options or Summary of Considerations.

Financial Overview

For the period ended 30 September 2024

RECOMMENDATIONS

That the Committee:

a) Notes the Financial Performance for the period ended 30 September 2024 and the Financial Position as at that date.

BACKGROUND

3 This report provides the financial statements for the period ended 30 September 2024. It includes reports on financial performance, financial position, cashflows and capital expenditure. Summary information is provided in the body of this report with detailed results attached. The operating result is also shown by group, including analysis by revenue and expenditure type.

DISCUSSION

4 This report includes a high-level summary of the financial information to 30 September 2024. Please refer to Attachment I for the detailed financial update.

Statement of Financial Performance

5 Revenue was $98.949 million for the period or $87k more than budget.

6 External revenue was unfavourable $981k partly due to landfill revenue being less than budget. Changes relating to the new kerbside collections contract mean disposal fees under the contract are reported as internal revenue. There was also lower-than-expected revenue from the Parking and Building Services activities as well as year to date revenue from water sales.

7 Grants revenue was favourable $333k reflecting the level of subsidised Transport operating and capital expenditure. Better Off Funding revenue was slightly less than budgeted.

8 Expenditure was $121.076 million for the period, or $487k less than budget.

9 Operations and maintenance expenditure was favourable $570k with unfavourable Transport maintenance costs largely offset by under expenditure in other activities, including Three Waters and Waste and Environmental Services.

10 Interest costs were favourable $602k reflecting a lower interest rate than budgeted and the timing of new loan advances.

11 Year to date the Waipori Fund has reported a net operating surplus of $3.354 million, $2.247 million more than budget. Following the positive results in July, New Zealand and international equities saw decreases in value during August and September. However, fixed term investments continued to show positive returns.

Statement of Financial Position

12 Capital expenditure was $37.350 million or 78.6% of the year-to-date budget. Capital expenditure in most activities was generally within budget for the period.

13 The loans balance now includes accrued interest of $7.137 million (representing the loan interest owing but not yet paid at 30 September shown as short-term loans). Previously this was classified separate to the loan balance, however the accounting standards now require this to be included. The actual loan balance at 30 September was $614.973 million, $10.000 million less than budget.

14 Attachment A includes a chart showing actual group and DCC debt for the years ending June 2003-2024. It provides forecast information for the years ending June 2024-2027 based on the current Statements of Intent (SOI).

OPTIONS

15 As this is an administrative report only, there are no options provided.

NEXT STEPS

16 Financial Result Reports continue be presented to future meetings of either the Finance and Council Controlled Organisation Committee or Council.

Signatories

Author:	Hayden McAuliffe - Financial Services Manager
Authoriser:	Carolyn Allan - Chief Financial Officer

Attachments

	Title	Page
⇩a	Dashboard Summary Financial Information	27
⇩b	Debt Graph	28
⇩c	Statement of Financial Performance	29
⇩d	Statement of Financial Position	30
⇩e	Statement of Cashflows	31
⇩f	Capital Expenditure Summary	32
⇩g	Capital Expenditure Detail	33
⇩h	Operating Variances	40
⇩i	Detailed Financial Update	41

Finance and Council Controlled Organisations Committee

14 November 2024

Waipori Fund - Quarter ending 30 September 2024

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 ended 30 September 2024.

RECOMMENDATIONS

That the Committee:

a) Notes the report from Dunedin City Treasury Limited on the Waipori Fund for the quarter ended 30 September 2024.

DISCUSSION

2 The Waipori Fund Statement of Investment Policy and Objectives (SIPO) requires quarterly reporting on the performance and financial position of the fund.

3 Dunedin City Treasury Limited has provided the Waipori Fund report for the September 2024 quarter. The report is provided as Attachment A.

OPTIONS

4 As this is a noting report, no options are provided.

NEXT STEPS

5 Quarterly reporting on the performance and financial position of the fund will be provided to future meetings of either the Financial and Council Controlled Organisations Committee or Council.

6 The Waipori Fund SIPO is being reviewed as part of the development of the 9-year plan 2025-34.

Signatories

Authoriser:

Carolyn Allan - Chief Financial Officer

Attachments

	Title	Page
⇩a	Waipori Fund - September 2024 Quarter	55

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This decision enables democratic local decision making and action by, and on behalf of communities.

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	☐	☐	✔

Reporting on the performance of the Waipori Fund does not contribute directly to the Strategic Framework.

Māori Impact Statement

Investment returns from the Waipori Fund impact on the level of rates payable, and therefore impact across all Dunedin communities including Māori.

Sustainability

There are no impacts for sustainability.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

A review of the SIPO for the Waipori Fund will be taken into account when developing a Financial Strategy for the 9 year plan 2025-34.

Financial considerations

Financial considerations are presented in the Waipori Fund report for the March 2024 quarter.

Significance

This report is considered to be of low significance in terms of the Council’s Significance and Engagement Policy.

Engagement – external

There has been no external engagement.

Engagement - internal

There has been no internal engagement.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

There are no implications for Community Boards.

Finance and Council Controlled Organisations Committee

14 November 2024

Dunedin City Holdings Limited Group Update - Quarterly Report to 30 September 2024

Department: Finance

EXECUTIVE SUMMARY

1 This report provides a quarterly update for the period ended 30 September 2024 for the Dunedin City Holdings Limited (DCHL) Group.

RECOMMENDATIONS

That the Committee:

a) Notes the Dunedin City Holdings Limited Group Quarterly report for the period ended 30 September 2024.

DISCUSSION

2 The attached DCHL Quarterly report for the period ended 30 September 2024 provides an update for Councillors on the following:

· Quarter 1 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 As this is a noting report, no options are provided.

NEXT STEPS

4 A quarterly update for the period ended 31 December 2024 for the Dunedin City Holdings Limited (DCHL) Group will be presented at a future meeting.

Signatories

Authoriser:

Carolyn Allan - Chief Financial Officer

Attachments

	Title	Page
⇩a	DCHL Quarterly Report to 30 September 2024	61

Finance and Council Controlled Organisations Committee

14 November 2024

Resolution to Exclude the Public

That the Finance and Council Controlled Organisations Committee:

Pursuant to the provisions of the Local Government Official Information and Meetings Act 1987, exclude the public from the following part of the proceedings of this meeting namely:

General subject of the matter to be considered

Reasons for passing this resolution in relation to each matter

Ground(s) under section 48(1) for the passing of this resolution

Reason for Confidentiality

C1 Confirmation of the Confidential Minutes of Finance and Council Controlled Organisations Committee meeting - 18 September 2024 - Public Excluded

C2 – Business South 2024 Board Election

	Title	Page
A ⇩	Minutes of Finance and Council Controlled Organisations Committee meeting held on 18 September 2024	16