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: Wednesday 9 February 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
Deputy Chairperson	Cr Doug Hall
Members	Cr Sophie Barker	Cr David Benson-Pope
	Cr Rachel Elder	Cr Christine Garey
	Cr Carmen Houlahan	Cr Marie Laufiso
	Cr Jim O'Malley	Cr Jules Radich
	Cr Chris Staynes	Cr Lee Vandervis
	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

www.dunedin.govt.nz

This meeting will be streamed on the Council’s YouTube Page https://youtu.be/EBcyvkwRqzQ

Note: Reports and recommendations contained in this agenda are not to be considered as Council policy until adopted.

Finance and Council Controlled Organisations Committee

9 February 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 - 3 November 2021 15

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

6 Finance and Council Controlled Organisations Committee - Forward Work Programme 19

7 Actions from resolutions of Finance and Council Controlled Organisations Committee meetings 25

8 Waipori Fund - Quarter Ending December 2021 29

9 Financial Result - Period Ended 31 December 2021 34

10 Items for Consideration by the Chair 52

Finance and Council Controlled Organisations Committee

9 February 2022

Declaration of Interest

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.

RECOMMENDATIONS

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

	Title	Page
⇩a	Elected Members' Register of Interests	6

Finance and Council Controlled Organisations Committee

9 February 2022

Finance and Council Controlled Organisations Committee

MINUTES

Minutes of an ordinary meeting of the Finance and Council Controlled Organisations Committee held in the Edinburgh Room, Municipal Chambers, The Octagon, Dunedin on Wednesday 03 November 2021, commencing at 1.00 pm

PRESENT

Chairperson	Cr Mike Lord
Deputy Chairperson	Cr Doug Hall
Members	Cr Sophie Barker	Cr David Benson-Pope
	Cr Rachel Elder	Cr Christine Garey
	Mayor Aaron Hawkins	Cr Carmen Houlahan
	Cr Marie Laufiso	Cr Jim O'Malley
	Cr Jules Radich	Cr Chris Staynes
	Cr Lee Vandervis	Cr Steve Walker
	Cr Andrew Whiley

IN ATTENDANCE

Sandy Graham (Chief Executive Officer), Gavin Logie (Chief Financial Officer) and Warren Allen (Chairperson, Audit and Risk Committee) and Clare Sullivan (Manager Governance)

Governance Support Officer Lynne Adamson

1 Public Forum

There was no Public Forum.

2 Apologies

There were no apologies.

3 Confirmation of agenda

Moved (Cr Mike Lord/Cr Steve Walker):

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 (Cr Mike Lord/Cr Doug Hall):

That the Committee:

a) Notes the Elected Members' Interest Register.

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 - 10 August 2021

Moved (Cr Mike Lord/Cr Andrew Whiley):

That the Committee:

Confirms the minutes of the Finance and Council Controlled Organisations Committee meeting held on 10 August 2021 as a correct record.

Motion carried

Part A Reports

6 Actions from resolutions of Finance and Council Controlled Organisations Committee meetings

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.

Moved (Cr Mike Lord/Cr Doug Hall):

That the Committee:

Notes the Open Actions from resolutions of Finance and Council Controlled Organisations Committee meetings.

Motion carried

7 Finance and Council Controlled Organisations Committee - Forward Work Programme
	A report from Corporate Policy provided the Finance and Council Controlled Organisations Committee forward work programme.
	The Chief Financial Officer (Gavin Logie) spoke to the report and responded to questions.
	Moved (Cr Chris Staynes/Cr Christine Garey): That the Committee: Notes the Finance and Council Controlled Organisations Committee forward work programme. Motion carried

8 Audit and Risk Subcommittee Overview
	Warren Allen, Chairperson of the Audit and Risk Subcommittee provided an overview of the Audit and Risk Subcommittee.
Cr Carmen Houlahan entered the meeting at 1.13 pm. Cr Rachel Elder left the meeting at 1.40 pm.
	Mr Allen responded to members’ questions.
	Moved (Cr Mike Lord/Cr David Benson-Pope): That the Committee: Notes the Audit and Risk Subcommittee update. Motion carried

9 Items for Consideration by the Chair

There were no items notified for consideration by the chair.

The meeting concluded at 1.45 pm.

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

CHAIRPERSON

Finance and Council Controlled Organisations Committee

9 February 2022

Part A Reports

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.

RECOMMENDATIONS

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

Attachments

	Title	Page
⇩a	Forward work programme - February 2022	23

Finance and Council Controlled Organisations Committee

9 February 2022

Actions from resolutions of Finance and Council Controlled Organisations Committee meetings

Department: Civic

EXECUTIVE SUMMARY

1 The purpose of this report is to detail the open and completed actions from resolutions of Finance and Council Controlled Organisations Committee meetings from the start of the triennium in October 2019 (Attachment A).

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

RECOMMENDATIONS

That the Committee:

a) Notes the Open Actions from resolutions of Finance and Council Controlled Organisations Committee meetings shown in Attachment A.

discussion

3 This report provides an update on resolutions that have been actions and completed since the last Finance and Council Controlled Organisations Committee meeting.

4 There are currently no closed actions for the Finance and Council Controlled Organisations Committee.

NEXT STEPS

5 An updated actions report will be provided at all Finance and Council Controlled Committee meetings.

Signatories

Author:	Wendy Collard - Governance Support Officer
Authoriser:	Clare Sullivan - Manager Governance

Attachments

	Title	Page
⇩a	Finance & CCO Committee Open Actions	27

Finance and Council Controlled Organisations Committee

9 February 2022

Waipori Fund - Quarter Ending December 2021

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 2021.

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

RECOMMENDATIONS

That the Committee:

a) Notes the report from Dunedin City Treasury Limited on the Waipori Fund for the quarter ended 31 December 2021.

BACKGROUND

3 Not applicable.

DISCUSSION

4 Not applicable.

OPTIONS

5 Not applicable.

NEXT STEPS

6 Not applicable.

Signatories

Author:	Richard Davey - Treasury Manager
Authoriser:	Gavin Logie - Chief Financial Officer

Attachments

	Title	Page
⇩a	Waipori Fund - quarter ending December 2021	30

Finance and Council Controlled Organisations Committee

9 February 2022

Financial Result - Period Ended 31 December 2021

Department: Finance

EXECUTIVE SUMMARY

1 This report provides the financial results for the period ended 31 December 2021 and the financial position as at that date.

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

RECOMMENDATIONS

That the Committee:

a) Notes the Financial Performance for the period ended 31 December 2021 and the Financial Position as at that date.

BACKGROUND

3 This report provides the financial statements for the period ended 31 December 2021. 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 $163.209 million for the period or $949k 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, 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 building services applications and inspections.

6 Expenditure was $169.297 million for the period or $1.919 million 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.

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 The performance of the Waipori Fund was impacted by a negative revaluation of fixed term investments as wholesale interest rates increase. Equity portfolios have recorded an overall net increase in fair value for the year to date. There was a market correction in December following 3 months of decline with all portfolios recording a net uplift in value.

10 Capital expenditure was $59.771 million for the period or 97.4% 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.

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

Attachments

	Title	Page
⇩a	Summary Financial Information	39
⇩b	Statement of Financial Performance	40
⇩c	Statement of Financial Position	41
⇩d	Statement of Cashflows	42
⇩e	Capital Expenditure Summary	43
⇩f	Summary of Operating Variances	44
⇩g	Financial Review	45

	Title	Page
A ⇩	Minutes of Finance and Council Controlled Organisations Committee meeting held on 3 November 2021	16