Agenda of Finance and Council Controlled Organisations Committee

Finance and Council Controlled Organisations Committee

12 March 2025

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 Thursday 14 November 2024, commencing at 3:05 pm.

PRESENT

Chairperson	Cr Lee Vandervis
Deputy Chairperson	Cr Cherry Lucas
Members	Cr Bill Acklin	Cr Sophie Barker
	Cr David Benson-Pope (via audio visual link)	Cr Christine Garey
	Cr Kevin Gilbert	Cr Carmen Houlahan
	Cr Marie Laufiso	Cr Mandy Mayhem
	Cr Jim O'Malley	Mayor Jules Radich
	Cr Brent Weatherall	Cr Andrew Whiley

IN ATTENDANCE

Sandy Graham (Chief Executive Officer) and Carolyn Allan (Chief Financial Officer), Hayden McAuliffe (Financial Services Manager), Peter Hocking (General Manager Dunedin City Holdings Ltd), Tim Loan (Chairperson, Dunedin City Holdings Group), Rob West (General Manager Corporate Services)

Governance Support Officer Lauren Riddle

1 Public Forum

There was no Public Forum.

2 Apologies

Moved (Chairperson Lee Vandervis/Cr Mandy Mayhem):

That the Committee:

Accepts the apologies from Cr Steve Walker, Cr Kevin Gilbert, Cr Sophie Barker, Cr Carmen Houlahan for absence and apology from Mayor Radich for early departure.

Motion carried.

3 Confirmation of agenda

Moved (Chairperson Lee Vandervis/Deputy Chairperson 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.

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

That the Committee:

a) Notes if necessary 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 - 18 September 2024

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

That the Committee:

Confirms the minutes of the Finance and Council Controlled Organisations Committee meeting held on 18 September 2024 as a correct record.

Motion carried (FCCO/2024/013)

Part A Reports

6 Finance and Council Controlled Organisations Committee - Forward Work Programme
	The Finance and Council Controlled Organisations Committee forward work programme outlined 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 (Chairperson Lee Vandervis/Deputy Chairperson Cherry Lucas): That the Committee: Notes the Finance and Council Controlled Organisations Committee forward work programme for October 2024. Motion carried (FCCO/2024/014)

7 Financial Report - Period Ended 30 September 2024
	The report provided the financial results for the period ended 30 September 2024 and the financial position as at that date.
	Carolyn Allan (Chief Financial Officer), Hayden McAuliffe (Financial Services Manager) and Sandy Graham (Chief Executive) spoke to the report and responded to questions. Cr David Benson-Pope left the meeting at 03:20 p.m.
	Moved (Chairperson Lee Vandervis/Deputy Chairperson Cherry Lucas): That the Committee: Notes the Financial Performance for the period ended 30 September 2024 and the Financial Position as at that date. Motion carried (FCCO/2024/015)

8 Waipori Fund - Quarter ending 30 September 2024
	The Dunedin City Treasury Limited report provided information on the results of the Waipori Fund for the quarter ended 30 September 2024.
	Peter Hocking, General Manager Dunedin City Holdings Ltd spoke to the report and responded to questions.
	Moved (Chairperson Lee Vandervis/Deputy Chairperson Cherry Lucas): That the Committee: Notes the report from Dunedin City Treasury Limited on the Waipori Fund for the quarter ended 30 September 2024. Motion carried (FCCO/2024/016)

9 Dunedin City Holdings Limited Group Update - Quarterly Report to 30 September 2024
	The report provided a quarterly update for the period ended 30 September 2024 for the Dunedin City Holdings Limited (DCHL) Group.
	Mr Tim Loan Dunedin City Holdings Group Chairperson and Peter Hocking, General Manager Dunedin City Holdings Ltd spoke to the report and responded to questions. Mr Tim Loan also responded to the written questions received from elected members on the quarterly report to 30 September 2024.
	Moved (Chairperson Lee Vandervis/Deputy Chairperson Cherry Lucas): That the Committee: Notes the Dunedin City Holdings Limited Group Quarterly report for the period ended 30 September 2024. Motion carried (FCCO/2024/017)

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

Tim Loan, Chairperson Dunedin City Holdings Group and Peter Hocking, General Manager Dunedin City Holdings Ltd responded to questions on the 2024 Annual Reports of Dunedin City Holdings Limited and its subsidiary companies approved by Council on 30 October 2024.

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

That the Committee:

Notes the Dunedin City Holdings Ltd (DCHL) and Subsidiaries Annual Reports to 30 June 2024.

Motion carried (FCCO/2024/018)

11 Items for consideration by the Chair
	No items for consideration of the Chairperson were advised.

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 - 18 September 2024 - Public Excluded

C2 Business South

2024 Board Election

S7(2) (a)

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

S48(1) (a)

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/2024/019)

The meeting moved into public excluded at 4:10 pm.

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

CHAIRPERSON

Finance and Council Controlled Organisations Committee

12 March 2025

Draft 2025/26 Statements of Intent - Dunedin City Holdings Limited Group Companies

Department: Civic

EXECUTIVE SUMMARY

1 This report presents the draft 2025/26 Statements of Intent (draft Statements) for the Dunedin City Holdings Group companies. A report from Dunedin City Holdings Ltd (DCHL) that discusses the draft Statements is at Attachment A, and the draft Statements for each company are presented at Attachment B – J.

2 The report sets out the process for reviewing and providing feedback on the draft Statements before final Statements of Intent are delivered to Council on or before 30 June 2025.

RECOMMENDATIONS

That the Committee:

a) Notes the draft 2025/26 Statements of Intent for the Dunedin City Holdings Group companies.

BACKGROUND

3 Council Controlled Organisations are required to deliver draft Statements to Council each year.

4 The draft Statements demonstrate accountability to the shareholder and the public by outlining the company’s activities and intentions for the next three financial years. The draft Statements provide the basis for the accountability of the directors to their shareholder for the performance of their organisation.

5 Draft Statements have been prepared to reflect the Letter of Expectation from the Dunedin City Council to Dunedin City Holdings Limited (DCHL), dated 13 December 2024.

DISCUSSION

6 A report from DCHL is at Attachment A. It identifies key considerations that are relevant when reviewing the draft Statements.

7 The financial forecasts contained in the draft Statements are indicative only and generally reflect the current Statements of Intent rolled forward. The financial forecasts will be updated for inclusion in the final Statements in June 2025.

8 As a shareholder of DCHL, Council may provide comments on the draft Statements to the Board of DCHL, who must consider the comments. DCHL will provide feedback to subsidiary and/or associate companies as necessary.

9 Final Statements of Intent must then be delivered to shareholders on or before 30 June 2025. Statements of Intent will be made publicly available on the DCC website on or before 1 July 2025.

OPTIONS

10 There are no options.

NEXT STEPS

11 Elected Members will be able to provide feedback via email. Emailed feedback will be required by the Special Projects Manager by Wednesday 26 March 2025. A workshop will be held in early April to discuss the feedback received.

12 The feedback will be collated into a report to Council on 30 April 2025 for Council to consider if it wishes to amend the Statements of Intent. Council’s decisions at that meeting will then be provided to DCHL by the statutory deadline of 1 May 2025.

13 Financial forecasts will be updated prior to the completion of the final Statements of Intent in June 2025.

Signatories

Author:	Sharon Bodeker - Special Projects Manager
Authoriser:	Carolyn Allan - Chief Financial Officer

Attachments

	Title	Page
⇩a	DCHL Cover Report	220
⇩b	Aurora Energy Ltd - draft SOI	224
⇩c	City Forests Ltd - draft SOI	242
⇩d	Dunedin City Holdings Ltd - draft SOI	256
⇩e	Dunedin City Treasury Ltd - draft SOI	269
⇩f	Delta Utility Services Ltd - draft SOI	276
⇩g	Dunedin International Airport Ltd - draft SOI	292
⇩h	Dunedin Railways Ltd - draft SOI	313
⇩i	Dunedin Stadium Property Ltd - draft SOI	321
⇩j	Dunedin Venues Management Ltd - draft SOI	333

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	☐	☐	✔

Draft Statements of Intent take into account Council’s Strategic Framework and Council’s Letter of Expectation to DCHL.

Māori Impact Statement

There has been no engagement with Māori on the draft Statements of Intent.

Sustainability

There are no known implications for sustainability.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

The financial forecasts within the DCHL draft Statement (page 9) shows annual levels of interest ($5.9m) and dividend ($11.0m) payable to DCC that are consistent with the DCC Draft 2024/25 Annual Plan.

Financial considerations

Financial projections will be updated prior to finalising the Statements of Intent.

Significance

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

Engagement – external

There has been no external engagement outside of the DCHL group.

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.

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 implications for Community Boards.

Finance and Council Controlled Organisations Committee

12 March 2025

Financial Report - Period ended 31 January 2025

Department: Finance

EXECUTIVE SUMMARY

1 This report provides the financial results for the period ended 31 January 2025 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 31 January 2025

RECOMMENDATIONS

That the Committee:

a) Notes the Financial Performance for the period ended 31 January 2025 and the Financial Position as at that date.

BACKGROUND

3 This report provides the financial statements for the period ended 31 January 2025. 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 31 January 2025. Please refer to Attachment I for the detailed financial update.

Statement of Financial Performance

5 Revenue was $228.350 million for the period or $3.970 million less than budget.

6 Operating revenue (external and internal combined) was unfavourable $1.447 million mainly due to lower-than-expected revenue from the Parking Services, Aquatic Services and Building Services activities.

7 Grants revenue was unfavourable $3.338 million reflecting funding decisions by NZTA under the National Land Transport Programme, and timing of the transport contractor work programme.

8 Expenditure was $255.655 million for the period, or $10.985 million less than budget.

9 Personnel costs was unfavourable $329k, reflecting overtime payments for 3 waters and union negotiated contract increases, which is being managed with vacancy management. The month of January showed a favourable variance of $196k, primarily driven by changes in the annual leave provision as a result of staff taking leave during the Christmas holiday period.

10 Operations and maintenance expenditure was favourable $2.350 million; however, this favourable variance was offset by an unfavourable $1.054 million variance in internal costs, largely due largely to landfill disposal costs for kerbside collections now recorded as internal costs. Unfavourable Transport maintenance costs are more than offset by under expenditure in other activities, including Three Waters and Waste and Environmental Services. Transport costs included emergency works totalling $1.850 million associated with the October rain event.

11 Depreciation costs were favourable $8.225 million, mainly due to the revaluation of Three Waters assets, and to a lesser extent Property and Parks assets.

12 Interest costs were favourable $2.209 million, reflecting a lower interest rate than budgeted and the timing of new loan advances.

13 Year to date the Waipori Fund has reported a net operating surplus of $8.777 million, $6.195 million more than budget. Operating revenue was favourable $6.202 million. Australian and international equities saw increases in value during January, largely offset however by a reduction in value for New Zealand equities. Fixed term investments values saw a decrease in value for the month, while still maintaining favourable results for the year to date.

Statement of Financial Position

14 Capital expenditure was $80.049 million or 69.3% of the year-to-date budget. Capital expenditure in most activities was generally within budget for the period.

15 The loans balance at 31 January was $651.972 million which was $29.501 million less than budget. This a reflection of the capital expenditure programme, which was underspent by $35.385 million to January. Additional to the January loans balance there was accrued interest of $1.923 million.

16 Attachment B 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), and the first two years of the draft 9-year plan.

OPTIONS

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

NEXT STEPS

18 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	350
⇩b	Debt Graph	351
⇩c	Statement of Financial Performance	352
⇩d	Statement of Financial Position	353
⇩e	Statement of Cashflows	354
⇩f	Capital Expenditure Summary	355
⇩g	Capital Expenditure Detailed Programme	356
⇩h	Operating Variances	363
⇩i	Detailed Financial Update	364

Finance and Council Controlled Organisations Committee

12 March 2025

Waipori Fund - Quarter ending 31 December 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 31 December 2024.

RECOMMENDATIONS

That the Committee:

a) Notes the report from Dunedin City Treasury Limited on the Waipori Fund for the quarter ended 31 December 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 December 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.

Signatories

Authoriser:

Carolyn Allan - Chief Financial Officer

Attachments

	Title	Page
⇩a	Waipori Fund - December 2024 Quarter	379

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

12 March 2025

Better Off Funding Update: July - December 2024

Department: Finance and 3 Waters

EXECUTIVE SUMMARY

1 This report provides updates on the Better Off Funding programmes, including project progress and financials, for the period of 1 July 2024 to 31 December 2024.

2 Overall, out of the $11.540 million available, $6.052 million has been spent, with a balance remaining of $5.487 million across five programmes, as of 31 December 2024.

3 In the six month period from 1 July 2024 to 31 December 2024, a total of $1.090 million was spent.

RECOMMENDATIONS

That the Committee:

a) Notes the Better Off Funding Update: July – December 2024 report.

BACKGROUND

4 Better Off Funding (BOF) was first introduced in July 2021 to support local government in the transition period of what was known as Three Waters Reform. DCC was allocated $11.540 million.

5 With the change in government, while the support for BOF has remained, the focus changed to delivering on projects to support Local Water Done Well (LWDW). The revised allocation of BOF is shown below in Table 1, by the five DIA approved programmes.

Table 1. BOF funding allocation

Programme	Allocation
P1. Future Development & Planning	$8,312,851
P2. Treaty Partnerships	$408,049
P3. Climate Action	$1,873,378
P4. Local Water Done Well	$500,000
P5. Infrastructure Project	$445,722
Total	$11,540,000

6 The BOF programme must be completed by 30 June 2027. The DCC is required to provide DIA with six-monthly reports, including information on activities undertaken, plans for the next six-month period, any major risks, a summary of outcomes and a full statement of completed activities.

DISCUSSION

Overall summary update

7 Updates in this report cover the period from 1 July 2024 to 31 December 2024 on the BOF programmes, including project progress and financials.

8 Overall, out of the $11.54 million available, $6.052 million has been spent, with a balance remaining of $5.487 million across five programmes (Table 2). Actual expenditure of $4.962 million had been incurred to 30 June 2024. Within the six months from 1 July 2024 to 31 December 2024, a total of $1.090 million was spent.

Table 2. Overall BOF programme funding allocation and actual expenditure for 1 July to 31 December 2024

Programme	Allocation	Total spend Jul – Dec 2024	Total spend to date	Unspent balance
P1. Future Development & Planning	$8,312,851	$508,246	$3,993,132	$4,319,719
P2. Treaty Partnerships	$408,049	$2,640	$345,689	$62,360
P3. Climate Action	$1,873,378	$557,774	$1,691,710	$181,668
P4. Local Water Done Well	$500,000	$22,093	$22,093	$477,907
P5. Infrastructure Project	$445,722	−	−	$445,722
Total	$11,540,000	$1,090,753	$6,052,624	$5,487,376

Update on project progress and financials by programme

Programme 1 - Future Development & Planning

9 Programme 1 consists of five active projects as three projects have already been completed. As of 31 December 2024, there is an unspent balance of $4.319 million. Financial updates for this programme are presented in Table 3.

Table 3. Programme 1: Future Development & Planning financial update

Programme 1 Project	Allocation	Total spend Jul – Dec 2024	Total spend to date	Unspent balance
P1.1 Enhanced 3 Waters Hydraulic Models	$1,626,665	$278,637	$939,923	$686,742
P1.2 New Transport Model	$168,071	−	$168,071	−*
P1.4 New Carbon Assessments of 3 Waters and Transport Infrastructure	$800,000	−	$138,584	$661,416
P1.5 Various infrastructure impact assessments	$760,000	−	$760,000	−*
P1.6 Accelerated Condition assessments of stormwater infrastructure	$163,541	−	$163,541	−*
P1.7 Accelerated Condition assessments of lifelines and trunk infrastructure	$2,520,000	−	$229,901	$2,290,099
P1.8 Lead and deliver accelerated and enhanced growth	$1,300,000	$178,132	$845,269	$454,731
P1.9 City Growth Team	$974,574	$51,477	$747,843	$226,731
Programme 1. Total	$8,312,851	$508,246	$3,993,132	$4,319,719

*the work had been completed prior to the reporting period

10 This section provides a brief update on project progress for each of the five active projects.

P1.1 Enhanced 3 Waters Hydraulic Models

11 Hydraulic modelling work continues. Work completed for the reporting period includes:

· Preparation of System Performance Assessments for the stormwater network in the Kaikorai Valley, North East Valley, Portsmouth Drive and Shore St Catchments

· Preparation of a System Performance Assessment for the wastewater network in Mosgiel

· Rapid Flood Hazard Assessments for Waitati, Waikouaiti and Karitane

· Validation of the updated South Dunedin Stormwater model by running a simulation of the 3-4 October 2024 rainfall event and comparing results to actual flooding.

P1.4 New Carbon Assessments of 3 Waters and Transport Infrastructure

12 No work has yet commenced. Staff / consultant resource still to be procured.

P1.7 Accelerated Condition assessments of lifelines and trunk infrastructure

13 Work undertaken includes scoping of physical condition inspection works and preparation of procurement for condition inspection contractors.

P1.8 Lead and deliver accelerated and enhanced growth

14 Staff resource allocated to and funded by this programme continues to deliver 3 Waters capital works, supporting delivery of the overall 3 Waters capital programme.

P1.9 City Growth Team

15 Staff resource allocated to and funded by this programme continues to work on processing 3 Waters aspects of development consent applications, assessing infrastructure vested to the DCC as part of development, and to identify and scope 3 Waters infrastructure that the DCC needs to provide to support the projected population growth.

Programme 2 - Treaty Partnerships

16 Programme 2 consists of two active projects. Two engagement projects are no longer funded. As of 31 December 2024, there is an unspent balance of $62,360. Financial updates for this programme are presented in Table 4.

Table 4. Programme 2: Treaty Partnership financial update

Programme 2 Project	Allocation	Total spend Jul – Dec 2024	Total spend to date	Unspent balance
P2.1 Strategic Treaty	$45,000	−	−	$45,000
P2.2 Cultural Capability Advisors	$363,049	$2,640	$345,689	$17,360
Programme 2. Total	$408,049	$2,640	$345,689	$62,360

17 This section provides a brief update on project progress for this programme.

P2.1 Strategic Treaty and P2.2 Cultural Capability Advisors

18 During the reporting period, BOF funding contributed to a facilitated workshop on Te Tiriti o Waitangi and activities to foster learning of te reo Māori across the DCC. The remaining BOF allocated to completing work underway is due for completion in the next four months.

Programme 3 - Climate Action

19 Programme 3 consists of two active projects. As of 31 December 2024, there is an unspent balance of $181,668. Financial updates for this programme are presented in Table 5.

Table 5. Programme 3: Climate Action financial update

Programme 3 Project	Allocation	Total spend Jul – Dec 2024	Total spend to date	Unspent balance
P3.1 Climate Action	$423,378	$91,927	$423,378	−
P3.2 South Dunedin Future	$1,450,000	$465,847	$1,268,332	$181,668
Programme 3. Total	$1,873,378	$557,774	$1,691,710	$181,668

20 This section provides a brief update on project progress for each of the two projects.

P3.1 Climate Action

21 During the reporting period, BOF provided budget to support city-wide emissions reduction initiatives via the Zero Carbon Alliance, working with industry on reducing construction and demolition waste, and supporting community groups to reduce waste to landfill. BOF funding for this programme is now complete.

P3.2 South Dunedin Future

22 BOF funding ($1.4 million) is blended with DCC and ORC funding and allocated for contracted activities across the whole South Dunedin Future (SDF) programme. BOF funding represents around 40% of total SDF funding over the three-year period 2023/24-2025/26 ($3.53 million). During the period 1 July - 31 December 2024, BOF funding contributed to technical work to finalise the South Dunedin risk assessment and develop seven potential adaptation futures for South Dunedin that will be presented to Councils in March 2025. This technical work was primarily undertaken by DCC’s consultant team (WSP, BECA and Tonkin + Taylor) and included engineering, land use planning, hazard assessment, risk assessment, community engagement, and technical peer review.

Programme 4 - Local Water Done Well

23 Programme 4 consists of two active projects. As of 31 December 2024, there is an unspent balance of $477,907. Financial updates for this programme are presented in Table 6.

Table 6. Programme 4: Local Water Done Well financial update for 1 July and 31 December 2024

Programme 4 Project	Allocation	Total spend Jul – Dec 2024	Total spend to date	Unspent balance
P4.1 New Organisational Structures	$250,000	$22,093	$22,093	$227,907
P4.2 Financial & Commercial Options	$250,000	−	−	$250,000
Programme 4. Total	$500,000	$22,093	$22,093	$477,907

24 This section provides a brief update on project progress for each of the two projects.

P4.1 New Organisational Structures

25 External support has been precured to work alongside DCC staff to assess options for water service delivery and implications associated with potential new organisational structures. This work is continuing and informed the report “Local Water Done Well – Decision on Model Shortlist for Water Services Delivery Plan” presented to Council on 25 November 2024.

P4.2 Financial & Commercial Options

26 No work was undertaken during the reporting period. Consultant resource has since been procured to support the DCC Finance Team with financial modelling of water service delivery options. This work informed the report “Local Water Done Well – Decision in Principle on Water Services Delivery Plan Model” that was presented to the Council meeting on 25 February 2025.

27 Council’s ‘in principle’ decision on its preferred model for the future delivery of water services will inform next steps to progress the development of the Water Service Delivery Plans.

Programme 5 - Infrastructure Project

28 Following the Council resolution at its 24 November 2024 meeting, a total of $445,722 has been allocated to 3 Waters projects under Programme 5 consisting of four projects. As of 31 December 2024, none of the reallocated funds has yet been spent (Table 7).

Table 7. Programme 5: Infrastructure Project financial update for 1 July and 31 December 2024

Programme 5 Project	Allocation	Total spend Jul – Dec 2024	Total spend to date	Unspent balance
P5.1 Health & Safety and Wellbeing	$50,000	−	−	$50,000
P5.2 System Improvements	$100,000	−	−	$100,000
P5.3 Resilience	$220,000	−	−	$220,000
P5.4 Growth	$75,722	−	−	$75,722
Programme 5. Total	$445,722	−	−	$445,722

29 This section provides a brief update on project progress for each of the four projects.

P5.1 Health & Safety and Wellbeing

30 Work is underway to scope the project and prepare for a procurement process.

P5.2 System Improvements

31 A SCADA (Supervisory Control and Data Acquisition) contractor has been procured and commences work in March 2025. SCADA improvements will then be scoped for delivery in the 2025/26 financial year. Requirements scoping has been completed for AMIS (Asset Management Information Systems) and the Lutra ID monitoring and compliance platform. 3 Waters is now liaising with the DCC Business Information Services team to secure a project management resource to progress the work.

P5.3 Resilience

32 Work during the reporting period focussed on scoping of repair work for damage to the Mt Grand and Rossville raw water dams and commencing procurement of contractors to carry out physical works.

33 No work has been carried out on the stormwater optimisation study for South Dunedin or the trial investigation into stormwater to wastewater cross-connections. Staff resource was focussed on assessing short-term options for South Dunedin, which was discussed at the recent Council meeting on 28 - 30 January 2025. A procurement process will be undertaken to carry out work on these tasks.

P5.4 Growth

34 More detailed scoping work has commenced to develop an ‘acceptable solution’ guideline for stormwater management for small subdivisions.

OPTIONS

35 There are no options as this is a report for noting only.

NEXT STEPS

36 Staff will continue to deliver on the current BOF programme of work and will provide the Infrastructure Services Committee with the next update report at its meeting on 10 June 2025.

Signatories

Author:

Junichi Sugishita - Senior Policy Analyst

Jared Oliver - Planning Manager

Authoriser:

Carolyn Allan - Chief Financial Officer

David Ward - General Manager, 3 Waters and Transition

Attachments

There are no attachments for this report.

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This decision promotes the social, economic and environmental well-being of communities in the present and for the future.

Fit with strategic framework

	Contributes	Detracts	Not applicable
Social Wellbeing Strategy	✔	☐	☐
Economic Development Strategy	✔	☐	☐
Environment Strategy	✔	☐	☐
Arts and Culture Strategy	☐	☐	✔
3 Waters Strategy	✔	☐	☐
Future Development Strategy	☐	☐	✔
Integrated Transport Strategy	☐	☐	✔
Parks and Recreation Strategy	☐	☐	✔
Other strategic projects/policies/plans	☐	☐	✔

Māori Impact Statement

Better Off Funding has been instrumental in supporting and growing DCC’s cultural capability which has directly, positively impacted relationships with mana whenua and the wider Māori community.

Sustainability

Better Off Funding had afforded advancement of DCC’s climate action and zero carbon workstreams until the change of funding guidelines. Some of the LWDW projects and initiatives that received the reallocated funding provide benefits by improving resilience of water infrastructure.

Zero carbon

This report includes information on Better Off Funding for Climate Action (Programme 3.1), which supports activities to reduce emissions at the DCC and city-wide levels.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

Work on infrastructure assessments, hydraulic analyses, future development strategy and the South Dunedin Futures programme will all influence the future plans and associated strategies.

Financial considerations

This is a noting only report.

Significance

The significance of this noting only report is considered low in terms of the Council’s the Significance and Engagement Policy.

Engagement – external

Staff have engaged with National Infrastructure Funding and Financing Ltd on a 6-monthly reporting to DIA.

Engagement – internal

There has been internal engagement regarding BOF funding with 3 Waters, Finance, Māori Partnership, Transport, Waste and Environmental Solutions, South Dunedin Futures and Zero Carbon.

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 direct implications for Community Boards.

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 - 14 November 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.	.
C2 Confidential Finance and Council Controlled Organisations Committee Forward Work Programme	S7(2)(h) The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.	S48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.
C3 Investment Property Portfolio - Quarter Ending 31 December 2024	S7(2)(b)(ii) The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.	S48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

	Title	Page
A ⇩	Minutes of Finance and Council Controlled Organisations Committee meeting held on 14 November 2024	16

Author:	Lauren Riddle - Governance Support Officer
Authoriser:	Carolyn Allan - Chief Financial Officer