AGENDA
Ordinary meeting of the
Audit, Risk and Finance Subcommittee
Tuesday 5 May 2015
Commencing at 1.00pm
Ruma Mārama (Level 2A)
Civic House
110 Trafalgar Street, Nelson
Membership: Mr John Peters (Chairperson), Her Worship the Mayor Rachel Reese, Councillors Ian Barker and Brian McGurk, and Mr John Murray
Guidelines for councillors attending the meeting, who are not members of the Committee, as set out in Standing Orders:
· All councillors, whether or not they are members of the Committee, may attend Committee meetings (SO 2.12.2)
· At the discretion of the Chair, councillors who are not Committee members may speak, or ask questions about a matter.
· Only Committee members may vote on any matter before the Committee (SO 3.14.1)
It is good practice for both Committee members and non-Committee members to declare any interests in items on the agenda. They should withdraw from the table for discussion and voting on any of these items.
Audit, Risk and Finance
Subcommittee
5 May 2015
1.1 Apologies have been received from Councillor Ian Barker
2. Confirmation of Order of Business
3.1 Updates to the Interests Register
3.2 Identify any conflicts of interest in the agenda
Document number M998
Recommendation
THAT the minutes of the meeting of the Audit, Risk and Finance Subcommittee, held on 10 March 2015, be confirmed as a true and correct record.
6. Status Report - Audit, Risk and Finance Subcommittee - 5 May 2015 15 - 16
Document number R4175
Recommendation
THAT the Status Report Audit, Risk and Finance Subcommittee 5 May 2015 (R4175) and its attachment (A1324298) be received.
Governance
Document number R4170
8. Events Resource Consent Charging Regime for RM125012 27 - 30
Document number R4177
Recommendation
THAT the report Events Resource Consent Charging Regime for RM125012 (R4177) be received.
Recommendation to Governance Committee and Council
THAT Council consider the options for the charging regime for the use of Council’s Resource Consent RM125012, as detailed in report R4177, and
Either: remove the charge altogether.
Or: increase the charge and apply it only to commercial events.
9. Business Case Approach for 2015/16 Projects 31 - 39
Document number R4183
Recommendation
THAT the report Business Case Approach for 2015/16 Projects (R4183) and its attachment (A1331113) be received.
Recommendation to Governance Committee and Council
THAT projects highlighted yellow in document A1331113 follow a business case approach.
Finance
10. Letter to the Council on the Audit for the Year Ending 30 June 2014 - Further Information 40 - 42
Document number R4168
Recommendation
THAT the report Letter to the Council on the Audit for the Year Ending 30 June 2014 - Further Information (R4168) be received.
11. Corporate Report for the Period Ending 31 March 2015 44 - 65
Document number R4194
Recommendation
THAT the report Corporate Report for the Period Ending 31 March 2015 (R4194) and attachments (A1342336, A1311288, A1343636, A1340305 and A793514) be received and the variations noted.
Recommendation to Governance Committee and Council
THAT Council note that ongoing costs of approximately $11,250 pa will need to be included in the Long Term Plan 2015-25 for live streaming of Council meetings.
Public Excluded Business
Recommendation
THAT the public be excluded from the following parts of the proceedings of this meeting.
The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:
|
Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
|
1 |
Kahurangi Employment Trust - Completion of Liquidation
|
Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7 |
The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) |
13. Re-admittance of the public
Recommendation
THAT the public be re-admitted to the meeting.
Minutes of a meeting of the Audit, Risk and Finance Subcommittee
Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson
On Tuesday, 10 March 2015, commencing at 9.01am
Present: Mr J Peters (Chairperson), Councillors I Barker and B McGurk, and Mr J Murray
In Attendance: Her Worship the Mayor R Reese, Councillor G Noonan, Chief Executive (C Hadley), Group Manager Corporate Services (N Harrison), Manager Operations (S Davies), Manager Communications (P Shattock), Manager Administration (P Langley), and Administration Adviser (S McLean)
1. Apologies
There were no apologies.
2. Confirmation of Order of Business
There was no change to the order of business.
3. Interests
There were no updates to the Interests Register, and no interests with items on the agenda were declared.
It was agreed that the Interests Register would be presented to the next Audit, Risk and Finance Subcommittee meeting.
4. Public Forum
There was no public forum.
5. Delegations and Terms of Reference
Document number A1297307, agenda page 6 refers.
The Chairperson said the Subcommittee’s terms of reference would be reviewed to ensure they were in line with best practise, and any proposed changes would be reported to the Governance Committee for consideration.
In response to a question, Group Manager Corporate Services, Ms Harrison, advised that monitoring of capital projects was included in the delegations under monitoring of financial and service performance.
6. Status Report – Audit, Risk and Finance Subcommittee 10 March 2015
Document number A1324298, agenda page 7 refers.
Resolved
THAT the Status Report – Audit, Risk and Finance Subcommittee 10 March 2015 (A1324298) be received.
Barker/Murray Carried
7. Chairperson’s Report
The Chairperson highlighted the important and necessary step of establishing the Audit, Risk and Finance Subcommittee. He said the focus was on improving responsibilities and undertakings in the areas of audit, risk and finance, and he was looking forward to working with officers and the Subcommittee to achieve this.
8. Corporate Report for the Period Ending 31 January 2015
Document number A1313350, agenda pages 8-26 refer.
Group Manager Corporate Services, Nikki Harrison, presented the report.
In response to concerns about report information not being considered by the Governance Committee, it was confirmed that all councillors receive a copy of Audit, Risk and Finance Subcommittee agendas. The Chief Executive, Clare Hadley, added there was ongoing discussion between group managers and committee chairpersons in regards to financial items and outcomes for each committee.
In response to a question, Ms Harrison advised there were likely to be further savings this financial year, but that some savings highlighted in the report were as a result of timing differences. She added that asset managers would be revising projections in April, in order to inform the final Long Term Plan 2015-25.
In response to a question, Ms Harrison advised that the total shareholder funds increase included a mix of surplus and reserve movements.
Ms Harrison said the transfer of funds to the Unsubsidised Roading account was required because the Maitai Walkway was not considered to be close enough to the city to be covered in the Inner City Enhancement account. She said the Maitai Walkway funding had been split into three accounts, with a portion in parks and reserves. Ms Harrison added that the Inner City Enhancement account was mainly funded by parking income.
There was agreement that the Major Projects Status Report was beneficial for the Subcommittee, and it could be further improved by including details of project size and overall timeframes.
In response to a question about projects with budgets in the red category, Manager Operations, Shane Davies, confirmed that those projects would stall if New Zealand Transport Agency (NZTA) funding was not received. The Chief Executive, Clare Hadley, highlighted the high degree of confidence in receiving NZTA funding due to the inclusion of those projects in the Regional Land Transport Plan.
In response to questions, Ms Harrison advised that any funds received from forestry insurance claims were kept within the account that the claim related to. She said that Emissions Trading Scheme (ETS) payments had been made and the price was lower than budgeted and lower priced euro credits were able to be used for the current years liability up to 31 December 2014. It was suggested that the topic of ETS be a matter for a future memo or report to the Subcommittee.
There was a discussion on landfill charges, with concern raised about the percentage increase in these charges.
Senior Asset Engineer – Solid Waste, Johan Thiart, explained that the budget had included material from Buller and the Nelson Waste water treatment plant which did not materialise.
Senior Asset Engineer – Solid Waste, Johan Thiart, spoke about the budgeted 20% dry solids in Nelson North wastewater sludge, and the intention to increase this to 40% dry solids by delaying the carting of dewatered sewage sludge. He advised the decrease in water content would then reduce tonnage costs, resulting in overall savings for Council.
Ms Harrison advised that even if savings from sludge dry solids were taken into account, this would not come close to recovering this year’s loss in the landfill account.
Mr Thiart advised that if landfill charges were not increased, the majority of the prior year surpluses in the landfill reserve fund would be used to offset the projected deficit for this year. He added that increasing the fees from May 2015 would still result in the need to use a portion of the prior year’s surplus.
It was highlighted that landfill fees were already set to increase in July 2015 to the amount recommended in the report. It was also noted that the higher fee appeared to be at market value.
Mr Thiart advised that the joint landfill agreement with Tasman District Council would not be affected, as the decision called for was only applicable to this financial year.
In response to a question, Ms Harrison confirmed that the landfill account was a closed account.
In response to a comment on replacing water meters, Mr Davies confirmed the process for replacement was already underway.
After discussion on the list of Additional Major Projects which were reported to Council separately, it was agreed that further details would be provided in future so the Subcommittee could understand and assess any potential risks to those projects.
Comments were made on the fixed rate maturity profile. Ms Harrison advised that the figures reflected Council’s ability to issue term debt for the past two years. She added the profile also reflected that there had been no increase in short term debt this financial year.
The recommendations were taken separately.
Resolved
THAT the report Corporate Report for the Period Ending 31 January 2015 (A1313350) and its attachments (A1313445, A1314763, A1314760, A1313550, A1313349 and A793514) be received and the variations noted.
Barker/McGurk Carried
Recommendation to Governance Committee and Council
THAT the landfill charges be increased from $114 per tonnes (inclusive of GST) to $121 (inclusive of GST) effective 15 May 2015;
AND THAT landfill users be given two weeks notice of the increase in landfill charges;
McGurk/Murray Carried
AND THAT approval is given for a transfer of all capital expenditure and debt relating to the Maitai Walkway to be made from the Inner City Enhancement account to the Unsubsidised Roading account in order to properly account for interest and debt in future years.
Barker/McGurk Carried
9. Letter to the Council on the Audit for the Year Ending 30 June 2014
Document number A1304574, agenda pages 27-37 refer.
Group Manager Corporate Services, Nikki Harrison, presented the report.
In response to a question, Ms Harrison advised that the indices used in the revaluation of infrastructural assets were being reviewed in response to the comments from Audit.
There was discussion on the reduction in staff numbers and Council’s ability to carry out control functions. The Chief Executive, Clare Hadley, advised that staff numbers referenced in the Audit letter included vacancies at the time of audit. She said there had been no significant impact on operations as a result of restructuring, and there was no ongoing concern amongst management in relation to staff numbers.
In response to a question, Mrs Hadley advised that a consultant was assessing the impact to Council of the new health and safety requirements for contractors. She said there would likely be an adjustment to the level of health and safety expertise in the organisation.
Mrs Hadley assured the Subcommittee that Council’s health and safety requirements and procedures were extended to contractors and consultants.
It was agreed that the Subcommittee would benefit from a follow up report containing management responses to the points raised in the Audit letter.
Resolved
THAT the report Letter to the Council on the Audit for the Year Ending 30 June 2014 (A1304574) and its attachment (A1297813) be received;
AND THAT a follow up report on points raised in the Letter to the Council on the Audit for the Year Ending 30 June 2014 be prepared for the Audit, Risk and Finance Subcommittee.
Murray/Barker Carried
Attendance: The meeting adjourned for morning tea from 10.17am to 10.35am.
10. Procurement Policy and Debt Management Process
Document number A1312127, agenda pages 38-50 refer.
Group Manager Corporate Services, Nikki Harrison, presented the report.
It was agreed that the report on Procurement Policy and Debt Management Process should be referred to the Governance Committee as there was value in the Committee receiving and discussing this item.
It was suggested that the Subcommittee would benefit from a report on Council’s Debt Management Policy.
Attendance: The meeting adjourned from 11.04am to 11.12am.
Resolved
THAT the report Procurement Policy and Debt Management Process (A1312127) and its attachments (A1293789, A1316053 and A1324271) be referred to the Governance Committee;
AND THAT a report on the debt management policy be brought to the next Audit, Risk and Finance Subcommittee meeting.
Murray/Barker Carried
11. Liability Management and Investment Policies
Document number A1312122, agenda pages 51-79 refer.
Group Manager, Corporate Services, Nikki Harrison presented the report.
In response to a question, Ms Harrison explained the purpose of forward start swaps and collars. She highlighted that forward start swaps were a mechanism to lengthen the term of a swap portfolio.
It was agreed that the Liability Management Policy (LMP) should include reference to Council not undertaking speculation.
In response to questions, Ms Harrison advised that the measure on equity had been removed from the Specific Borrowing Limits section of the LMP. She said the register of guarantees provided would be presented to the Subcommittee on an annual basis. Ms Harrison advised the Debenture Trustee was Foundation Corporate Trust and detail on this could be included in the LMP.
It was agreed that the first sentence in the New Zealand Local Government Funding Agency section of the LMP needed further clarification.
Her Worship the Mayor highlighted that the use of the dividend stream to reduce rates could be assessed by the Subcommittee in the future.
Concerns were raised that investments in the Marina and camping grounds were not included in the Investment Policy. It was suggested that several Investment Policies could be created based on different types on investment.
In response to a question, Ms Harrison advised that the miscellaneous loans section in the Investment Policy referred to loans to organisations such as Theatre Royal and Nelson Enterprise Loan Trust. She added that information on these loans would be reported to the Subcommittee on an annual basis.
It was agreed that the Investment Principles section in the Investment Policy would be updated to reflect that any investment would have risk and would be appropriately managed.
Concern was raised about reference to Council holding no investments purely for income earning purposes. It was queried if this reflected current holdings, and if not, if Council’s portfolio would be impacted. It was agreed that if any investments held for purely income earning purposes were identified, these would be listed in the Investment Policy.
It was agreed that the first sentence in the New Zealand Local Government Funding Agency section of the Investment Policy needed further clarification.
Resolved
THAT the report Liability Management and Investment Policies (A1312122) and its attachments (A1261456 and A1261457) be received.
Barker/Murray Carried
Recommendation to Governance Committee and Council
THAT the Liability Management and Investment Policies, with amendments from the Audit, Risk and Finance Subcommittee, be adopted.
Barker/Murray Carried
12. Proposed Meeting Dates
It was clarified that the Subcommittee could meet in-between set meeting dates should the need arise.
It was noted that a work plan for the Subcommittee may be arranged.
It was suggested that the proposed meeting dates be reviewed to ensure alignment with the adoption of the Annual Report.
Her Worship the Mayor reminded the Subcommittee that any workshops for the Subcommittee would need to be confirmed through the Chairperson’s Report.
There being no further business the meeting ended at 11.56am.
Confirmed as a correct record of proceedings:
Chairperson
Date
|
|
Audit, Risk and Finance Subcommittee 5 May 2015 |
REPORT R4175
Status Report - Audit, Risk and Finance Subcommittee - 5 May 2015
1. Purpose of Report
1.1 To provide an update on the status of actions requested and pending.
2. Recommendaton
|
THAT the Status Report Audit, Risk and Finance Subcommittee 5 May 2015 (R4175) and its attachment (A1324298) be received. |
Shailey McLean
Administration Adviser
Attachments
Attachment 1: Status Report - Audit, Risk and Finance Subcommittee - May 2015
|
Date of meeting/Item |
Action Resolution |
Officer |
Status |
|
4/12/14 (Governance Committee) Council Risk Register |
AND THAT a plan for the development of a full risk management framework incorporating this Risk Register be brought to this Committee by the end of this financial year. |
Nikki Harrison |
5/5/15 To be reported to a future meeting. Underway |
|
10/3/15 Letter to the Council on the Audit for the Year Ending 30 June 2014
|
AND THAT a follow up report on points raised in the Letter to the Council on the Audit for the Year Ending 30 June 2014 be prepared for the Audit, Risk and Finance Subcommittee. |
Nikki Harrison |
5/5/15 Included in the 5 May Subcommittee Agenda. Complete |
|
10/3/15 Procurement Policy and Debt Management Process |
AND THAT a report on the debt management policy be brought to the next Audit, Risk and Finance Subcommittee meeting.
|
Nikki Harrison |
5/5/15 To be reported to a future meeting. Underway |
|
|
Audit, Risk and Finance Subcommittee 5 May 2015 |
REPORT R4170
Interests Register
Attached for the Subcommittee’s information is the Interests Register for Members and Interests Register for the Senior Leadership Team.
This information was requested at the Audit, Risk and Finance Subcommittee meeting on 10 March 2015
Attachments
Attachment 1: Elected Members Interest Register A1006782
Attachment 2: Senior Leadership Team Interests Register A1004272
Last updated June 2014
Elected Members:
|
Member |
Last Update |
Elected Member Declared Business Interest and value |
Spouse/Partner Declared Interest |
|
Her Worship the Mayor Rachel Reese |
5 June 2014 (Interests Register received at Council meeting) |
Property co-owner 4A Allan Street Shareholder/Director - Rachel Reese Consulting Ltd Shareholder - Wharehunga Forestry 2004 Ltd Beneficiary - TuJaes Trust Minor Shareholder - AMP Ltp Minor Shareholder - Manus Resources Ltd Trustee - Hilda and Auty Harley Trust
Council-related appointments Patron - Civic Trust Trustee - Nelson Municipal Band Trustee - Cawthron Trust Board
|
Property co-owner 4A Allan Street Director/Shareholder - RH Investments Ltd |
|
Councillor Luke Acland |
5 June 2014 (Interests Register received at Council meeting) |
Property owner 15 Cambria Street |
No declared interests |
|
Councillor Ian Barker |
5 June 2014 (Interests Register received at Council meeting) |
Member – Nelson Residents Association Member – Age Concern Board member – Tahuna Beach Holiday Park Chairman – Guardian of Nightingale Library Trustee – Network Tasman Trust |
No declared interests |
|
Councillor Ruth Copeland |
5 June 2014 (Interests Register received at Council meeting) |
No declared interests |
Event Manager - Nelson Arts Festival (2013) $4,500 per annum Nelson Arts Festival Hireages (2013) $2,500 Event Manager - Isel in Bloom (October 2013) and Broadgreen Rose Day (November 2013) $3,000 Event Manager - New Years Eve Event (December 2013) CEL Trafalgar Centre - event preparation and packdown ($7,500) |
|
Councillor Eric Davy |
5 June 2014 (Interests Register received at Council meeting)
|
No declared interests |
No declared interests |
|
Councillor Kate Fulton |
5 June 2014 (Interests Register received at Council meeting)
|
No declared interests |
No declared interests |
|
Councillor Matt Lawrey |
5 June 2014 (Interests Register received at Council meeting) |
Properties (owner): 13/15, 31 and 33 Orsman Cres Contributor - 2013 Nelson Arts Festival 2013 Race Unity Day (MC) 2013 Little Day Out (MC) Contributor – 2014 Nelson Arts Festival 2014 Race Unity Day (MC) Organiser of ‘First Responders Parade 2014’ – this event received $575 of NCC Heritage Week Funding.
|
No declared interests |
|
Councillor Paul Matheson |
5 June 2014 (Interests Register received at Council meeting) |
NZ Community Trust Nelson Cancer Society NZ Fisheries Museum and Marine Education Centre Trust |
No declared interests |
|
Councillor Brian McGurk |
18 August 2014 |
Trustee and beneficiary of BJ and DA McGurk Family Trust |
No declared interests |
|
Councillor Gaile Noonan |
5 June 2014 (Interests Register received at Council meeting) |
Deputy Chair - Big Brothers Big Sisters Nelson Foodbank Volunteer |
No declared interests |
|
Councillor Pete Rainey |
5 June 2014 (Interests Register received at Council meeting) |
Director
of Rockquest Promotions Ltd providing events partially funded by proceeds of
gaming trusts, as well as having technical production contracts with NCC
potentially in excess of $25,000.00. Approval for this is being sought from
the Office of the Auditor General. Artistic Director Opera in the park Trustee - Youth and Community Facilities Trust Trustee – Tawhiri Trust |
Sales manager at Media Works Nelson |
|
Councillor Tim Skinner |
5 June 2014 (Interests Register received at Council meeting)
|
No declared interests |
No declared interests |
|
Councillor Mike Ward |
5 June 2014 (Interests Register received at Council meeting) |
Business: Studio (244 Hardy Street), and jewellery sales through Suter Gallery shop Property owner 10 Russell Street |
No declared interests |
Externally Appointed Committee Members:
|
Governance Committee Members |
Last Update |
Member Declared Business Interest and value |
Spouse/Partner Declared Interest |
|
John Murray |
Aug 2014 |
Personal interest in two properties in Nelson City through my family trust. One at 41 Marybank Rd and the other at 72 Trafalgar Street.
Various commercial and residential interests in property in the Nelson City boundary. This arises because of various trusteeships held directly and indirectly on behalf of clients of Crowe Horwath.
Principal of Crowe Horwath in Nelson. Various relationships with business and property owners which operate in the Nelson City.
Trustee of the Saxton Velodrome Trust.
Secretary and financial adviser to Te Atiawa O Te Waka a Maui Trust.
Director of Te Atiawa Asset Holding Company Limited.
Secretary and financial adviser to Ngati Rarua Atiawa Iwi Trust.
|
|
|
John Peters |
July 2014 |
Co-owner of property at 37 Tresillian Avenue Chairman of the Nelson Tasman Region Hospice Trust |
|
Planning and Regulatory Committee Members |
Last Update |
Member Declared Business Interest and value |
Spouse/Partner Declared Interest |
|
Glenice Paine |
|
Members of Joint Committees administered by Nelson City Council:
|
NRSBU Members |
Last Update |
Member Declared Business Interest and value |
Spouse/Partner Declared Interest |
|
Councillor Michael Higgins (TDC Councillor) |
20 June 2014 |
No declared interests
|
No declared interests |
|
Councillor Barry Dowler (TDC Councillor) |
20 June 2014 |
No declared interests |
No declared interests |
|
Councillor Ruth Copeland (NCC Councillor) |
5
June 2014 |
No declared |
Event Manager - Nelson Arts Festival (2013) $4,500 per annum Nelson Arts Festival Hireages (2013) $2,500 Event Manager - Isel in Bloom (October 2013) and Broadgreen Rose Day (November 2013) $3,000 Event Manager - New Years Eve Event (December 2013) CEL Trafalgar Centre - event preparation and packdown ($7,500)
|
|
Derek Shaw (NCC appointee) |
29 August 2014 |
Nikau Press – sole trader Brook Waimarama Sanctuary Trust – Trustee Nelson Environment Centre – Board Chairperson Tasman Regional Sports Event Trust – Trustee Saxton Velodrome Trust – Trustee NZ Masters Athletics Association – Executive member District Licensing Committee – panel member
|
|
|
Matthew Hippolite (Iwi representative) |
16 June 2014 |
NCC Kotahitanga (Ngati Koata Rep) NCC Compliance and Monitoring Group (Waste Water Overflow RMA Consent compliance) Solid
Waste Joint Working Party (NCC & TDC combined Management Strategy) Waimea Plains Freshwater (Quality) and Land Management Group (Iwi Rep) Tiakina Te Taiao Ltd Board of Directors (Koata Alternate Director) Marlborough District Council Iwi Working Group (Ngati Koata Rep) Ngati Koata Trust – Projects Manager (Employer)
|
No declared interests |
|
Phillip Wilson (Industry Representative) |
20 June 2014 |
No declared interests
|
No declared interests |
Last updated January 2015
|
Council Officer |
Last Updated |
Officer’s Declared Interest and value |
Spouse/Partner Declared Interest |
|
Chief Executive Clare Hadley |
21 July 2014 |
Trustee, Hadley Family Trust |
Trustee, Hadley Family Trust |
|
Group Manager Community Services Chris Ward |
16 July 2014 |
No declared interests |
Regional Co-ordinator Fostering Kids NZ |
|
Group Manager Infrastructure Alec Louverdis |
16 July 2014 |
No declared interests |
No declared interests |
|
Group Manager Strategy and Environment Clare Barton |
5 August 2014 |
No declared interests |
No declared interests |
|
Group Manager Corporate Services Nikki Harrison |
13 January 2015 |
Director of Local Government Superannuation Trust (Trustee of Supereasy and Kiwisaver Supereasy) |
No declared interests |
|
Senior Strategic Adviser Nicky McDonald |
16 July 2014 |
Trustee Garin College |
No declared interests |
|
Kaihautu Geoff Mullen |
16 July 2014 |
No declared interests |
No declared interests |
|
Council Officer |
Last Updated |
Executive Member Declared Interest and value |
Spouse/Partner Declared Interest |
|
Senior Legal Adviser Viesturs Altments |
6 August 2014 |
· Director – Cephas Group of Companies · Director – Tinline Properties Limited · Director – Tinline Properties (Canterbury) · Trustee – Cephas Foundation · Trustee – Everawake Ministries Charitable Trust · Trustee – Nelson Charitable Trust · Tinline Properties, Palm Beach, Papamoa · Rootstock Charitable Trust · Associated Churches of Christ of New Zealand Property Trust Board |
No declared interests |
|
|
Audit, Risk and Finance Subcommittee 5 May 2015 |
REPORT R4177
Events Resource Consent Charging Regime for RM125012
1. Purpose of Report
1.1 To report back on the charging regime for RM125012 as requested by Council on 4 June 2013.
2. Delegations
2.1 The Audit, Risk and Finance Subcommittee has delegated responsibility for management of financial risk and monitoring Council’s financial and service performance.
3. Recommendation
|
THAT the report Events Resource Consent Charging Regime for RM125012 (R4177) be received. |
Recommendation to Governance Committee and Council
4. Background
4.1 In 2012/13 Council obtained two resource consents for amplified sound where noise levels breach specified rules in the Nelson Resource Management Plan. Resource consent RM115245, also referred to as the ‘global consent’, allows for amplified sound in parks under certain conditions and is not limited to the number of events. Resource consent RM125012 allows for a specific number of special events, at set noise limits, at nominated venues, on limited occasions per year. Where events fall outside these consents, separate applications must be made.
4.2 After a lengthy process, the cost of obtaining these Resource Consents was substantially higher than budgeted which resulted in an overspend of around $150,000. On 4 June 2013, Council considered options for obtaining a return on investment made on Resource Consent RM125012. It was resolved:
THAT the Council confirm that the consents (RM115245 and RM125012) are a Council investment;
AND THAT a fee of $250 be charged for special events, where the event will be using the Council’s Resource Consent RM125012 and Site Noise Management Plans;
AND THAT this charging regime be reviewed and reported back to the Audit, Risk and Finance Committee in 12 months.
5. Discussion
5.1 Applications for the use of amplified sound and the subsequent use of RM125012 are received through Council’s Parks and Facilities Business Unit. Records show that since obtaining the consent, three events have been approved through this process and fallen under the charging regime for RM125012, resulting in income of $750. These events were community events; Bikefest Carnivelo, Carols on the Green and Jazz in the Park. Other than these events the main use of the consent is for Council run events.
5.2 For the initial investment of over $150,000, the return of $750 over 18 months is not a substantial amount. The income generated does not outweigh the cost of administration to charge the fee, so to continue with the current charging regime is not a justifiable return on investment.
5.3 The investment made into these resource consents has allowed a compliance framework to be set. Compliance with consented noise levels of events has improved significantly and feedback from the community has been positive in this regard. Environmental Inspections Limited report a significant decrease in the number of complaints received and monitoring has shown compliance. The Events Noise Management Group (set up in 2013 as an interface between Council as consent holder and members of the community) meet quarterly in relation to resource consents RM115245 & RM125012. At the December 2014 meeting, it was noted that compliance around noise has significantly improved since Council invested in these resource consents.
5.4 It is worth noting that the cost of applying for a separate resource consent for an event would be well in excess of $250. Where events are able to use Council’s resource consent RM125012 this saves a significant amount of time and associated costs and comes with the provision of relevant Site Noise Management Plans. Some events that did not fit the criteria of resource consent RM125012 have had to apply for their own consent, such as the Royal NZ Pipe Band Championships being held at Trafalgar Park in March 2015.
6. Options
6.1 There are a number of options to consider for the future use and charging regime for resource consent RM125012 as outlined below.
Option 1 Maintain status quo
6.2 Maintain status quo and continue with the current charging regime of $250 for the use of the consent. With this option, the cost to administer the charge is greater than the amount of income generated and the extent of the return on investment is limited. The charge also creates a barrier to community events.
Option 2 Increase charge
6.3 Increase the amount charged to $500 for commercial events only (ticketed events). This option would justify the administration cost of charging the fee. This would still be a reasonable cost for commercial events to pay as well as saving time and costs associated with lodging a separate application. With this option, community events would not be charged a fee, allowing them to operate viably, without the added barrier of a noise consent fee.
Option 3 Remove charge
6.4 Remove the charge altogether, accepting the initial investment as a sunk cost. Most events under the consent to date have been community events and there is not likely to be a substantial return on investment. Removing the charge would allow events to operate under the consent without the added barrier of the cost and process to obtain a consent, while ensuring compliance, which is what the initial investment was made for. This would support events to add vibrancy to Nelson.
7. Alignment with relevant Council policy
7.1 The Resource Consents are required for compliance with the Nelson Resource Management Plan.
8. Assessment of Significance against the Council’s Significance and Engagement Policy
8.1 This is not a significant decision in terms of Council’s Significance and Engagement Policy.
9. Consultation
9.1 No specific consultation has taken place in regards to this report.
10. Inclusion of Māori in the decision making process
10.1 Maori have not been specifically consulted in regards to this report.
11. Conclusion
11.1 After Council obtained Resource Consents for amplified sound at events on Council parks and reserves, and a limited number of special events, a charging regime was introduced to assist in obtaining a return on investment. Due to the associated administration costs and low return on investment to date, Council needs to decide whether to remove the charge altogether, or increase the charge to $500 for commercial events only.
Shanine Hermsen
Manager Community Partnerships
Attachments
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Audit, Risk and Finance Subcommittee 5 May 2015 |
REPORT R4183
Business Case Approach for 2015/16 Projects
1. Purpose of Report
1.1 To decide which 2015/16 capital funded infrastructure projects will follow a business case approach.
2. Delegations
2.1 This is a matter for the Audit Risk and Finance Subcommittee as it has responsibility to recommend to Governance Committee in the areas of risk management and internal control, and monitoring of Council’s financial and service performance.
3. Recommendation
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THAT the report Business Case Approach for 2015/16 Projects (R4183) and its attachments (A1331113) be received. |
Recommendation to Governance Committee and Council
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THAT projects highlighted yellow in document A1331113 follow a business case approach. |
4. Background
4.1 In 2014, the Chief Executive commissioned an external review of decisions and actions relating to the southern extension of the Trafalgar Centre. The review was conducted by Alan Bickers, of Jayal Enterprises Ltd. The final report to Council carried a recommendation that “for every significant capital project NCC should consider a policy requiring the preparation and approval of a business case”. After receiving that report, Council resolved on 5 June 2014:
AND THAT Council note the business case approach to projects, as set out in the Independent Review of the Southern End, Trafalgar Centre, will be reviewed and incorporated into management practices for use in significant Council projects;
AND THAT through the Long Term Plan/Annual Plan development, Council will give consideration to the projects that will follow a business case approach.
4.2 Management practices that incorporate the business case approach are being implemented. As part of this, officers have selected a number of projects from the draft Long Term Plan 2015/25, for which Nelson City Council management will adopt a business case approach. This selection is based on a range of factors, such as level of capital investment is $250,000 or more , level of risk, and level of perceived public interest. In the first instance, initial business cases will be collated for these projects. These projects are highlighted yellow in Attachment 1.
4.3 The initial business cases will describe:
• the known problem, or opportunity;
• the preferred or agreed solution for addressing the problem or opportunity, noting alternative options;
• the estimated lifetime costs for the project and it’s deliverables;
• the expected outcomes and benefits that will result from the project;
• the key known risks that could impact on the project deliverables or outcomes.
5. Discussion
5.1 Projects have been included in the draft Long Term Plan 2015/25, based on advice from officers and as discussed through the draft Asset Management Plans 2015/25, and Council workshops for the Long Term Plan 2015/25.
5.2 A selection of projects that will follow a business case approach is presented for consideration by the Audit Risk and Finance Subcommittee. The list of capital funded infrastructure projects in the draft Long Term Plan 2015/25 with a total year 1 to 3 budget of $250,000 or more is included in Attachment 1, with the selected projects highlighted yellow.
6. Options
6.1 The Audit Risk and Finance Committee recommend to the Governance Committee that the projects highlighted yellow in Attachment 1 are the selected projects that will follow a business case approach.
6.2 The Audit Risk and Finance Committee recommend to the Governance Committee an amended selection of projects that will follow a business case approach.
7. Alignment with relevant Council policy
7.1 This matter is not in contradiction to any Council policy or strategic document.
7.2 The recommendation is unlikely to be inconsistent with any other previous Council decision.
7.3 The costs associated with the recommendation are staff time, and are accommodated within existing budget.
8. Assessment of Significance against the Council’s Significance and Engagement Policy
8.1 This matter is not significant in terms of Council’s Significance and Engagement Policy.
9. Consultation
9.1 The public have not been consulted on this matter.
10. Inclusion of Māori in the decision making process
10.1 Maori have not been consulted on this matter.
11. Conclusion
11.1 Following a business case approach for selected projects fulfils the Council resolution from 5 June 2014.
Arlene Akhlaq
Senior Projects Adviser
Attachments
Attachment 1: A1331113 - Capital Funded Projects included in Year 1 of the draft Long Term Plan 2015-25 - April 2015
*Only yellow highlighted cells are relevant
*Only yellow highlighted cells are relevant
*Only yellow highlighted cells are relevant
*Only yellow highlighted cells are relevant
*Only yellow highlighted cells are relevant
*Only yellow highlighted cells are relevant
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Audit, Risk and Finance Subcommittee 5 May 2015 |
REPORT R4168
Letter to the Council on the Audit for the Year Ending 30 June 2014 - Further Information
1. Purpose of Report
1.1 To provide further detail on the Audit NZ letter to the Council on the audit for the year ending 30 June 2014.
2. Delegations
2.1 The Audit, Risk and Finance Subcommittee have responsibility for the audit of Council’s Annual Report and annual accounts.
3. Recommendation
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THAT the report Letter to the Council on the Audit for the Year Ending 30 June 2014 - Further Information (R4168) be received. |
4. Background
4.1 At the Audit, Risk and Finance Subcommittee meeting on 10 March 2015, members asked for further detail on some of the comments Audit NZ made in its letter to Council on the Audit for the year ending 30 June 2014.
5. Discussion
5.1 Further detail on each of the areas in the letter to Council is provided below.
Rates setting process
5.2 Audit NZ comment:
We encourage the City Council to have a legal review of its rates setting process each year. We believe this is particularly important when the City Council introduces a new rate, or when changes occur to the underlying legislation (either the Local Government Act 2002 or the Local Government (Rating) Act 2002). This would provide a useful check that the City Council continues to comply with what are complex pieces of legislation.
5.3 Nelson City Council will continue to engage Simpson Grierson annually to review the Funding Impact Statement prior to Annual Plan/LTP consultation and again to review the rates resolution later in the process prior to the resolution being passed.
Organisational restructuring
5.4 Audit NZ comment:
The City Council’s staff levels have dropped significantly because of this restructuring. Staff numbers decreased in the year by 37 to 220. We will continue to monitor the impact, if any, of this large staffing reduction on the control environment and also whether there is any significant impact on the City Council’s operations, as reflected in the levels of service reported in the 2014/15 annual report.
5.5 The significant reduction in this period was as a result of incomplete recruitment for new roles. Staffing levels have increased slightly since 30 June 2014.
Revaluation of infrastructure assets
5.6 Audit NZ comment:
For 2015, we recommend that the City Council review its processes as to how it prepares the valuation. If a valuation is to be undertaken, we recommend a full, compliant valuation be performed. If the City council believes it is not cost effective to undertake full revaluations every year we suggest that the City Council includes more specific cost information on unit rates and updates asset quantity information in the infrastructural asset revaluation.
5.7 It is not cost effective to undertake a full revaluation every year but we will review our processes around indexing.
Public sector concerns
5.8 Audit NZ comment:
We followed up our previous recommendations in relation to credit card expenditure and identified that tax receipts had not been retained in relation to several items of credit card expenditure. We discuss this matter further in our supplementary report to management.
5.9 Credit cards are now being administered at a more senior level in Finance. We have reminded the administrator that if there is no invoice, then the card holder would be liable for the expense, unless there are exceptional circumstances. The credit card policy is circulated regularly to credit card holders to remind them of their obligations.
Shared services
5.10 Audit NZ comment:
This is an area that the City Council is looking to develop and is continuing to consider options in this area. These are mainly in relation to working with other Councils in the north of the South Island.
5.11 Management is interested in pursuing shared services opportunities as they arise.
Changes to the accounting standards framework for public benefit entities (PBEs)
5.12 Audit NZ comment:
The transition to the new standards is imminent. The City Council is responsible for being ready to apply the new accounting standards and prepare compliant financial statements. We expect the City Council to be prepared for us to audit the transition as part of next year’s audit to ensure that we can efficiently carry out our audit of financial statements prepared using the new accounting standards.
5.13 Matters of categorisation/presentation of financial statements have already been dealt with. Potential issues relating to consolidation and disclosure are currently being worked through. Publication of OAG model accounts will assist. Anticipate full compliance prior to audit arrival.
6. Options
6.1 That the committee note the matters raised in this report.
7. Alignment with relevant Council policy
7.1 This recommendation is not inconsistent with any previous Council decision.
8. Assessment of Significance against the Council’s Significance and Engagement Policy
8.1 This is not a significant decision.
9. Consultation
9.1 No consultation has occurred in preparation of this report.
10. Inclusion of Māori in the decision making process
10.1 No consultation with Maori has occurred in preparation of this report.
Nikki Harrison
Group Manager Corporate Services
Attachments
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Audit, Risk and Finance Subcommittee 5 May 2015 |
REPORT R4194
Corporate Report for the Period Ending 31 March 2015
1. Purpose of Report
1.1 To inform the members of the Audit Risk and Finance Committee on the financial results of activities for the 9 months ending 31 March 2015 compared to the first projection, completed as part of the draft Long-Term Plan 2015-2025 (LTP), and to highlight and explain any material variations.
2. Delegations
2.1 The Audit Risk and Finance Committee has oversight of the management of financial risk and makes recommendations to the Governance Committee and to Council.
3. Recommendation
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THAT the report Corporate Report for the Period Ending 31 March 2015 (R4194) and attachments (A1342336, A1311288, A1343636, A1340305 and A793514) be received and the variations noted. |
Recommendation to Governance Committee
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THAT Council note that ongoing costs of approximately $11,250 pa will need to be included in the Long Term Plan 2015-25 for live streaming of Council meetings. |
4. Background
4.1 The report focuses on the 9 month performance compared with the year to date projection. Budgets/projections for operating income and expenditure are phased evenly through the year, whereas capital expenditure budgets/projections are phased to occur mainly in the second half of the year.
4.2 Projections (forecasts) were completed as part of the work informing the draft LTP, and updated projections will be complete by the end of April. We would expect variances against the updated projections to be diminished.
4.3 Some definitions of terms used within this report:
· Operating income – all income other than rates including metered water, grants, fees, rentals, and recoveries;
· Rates – includes the general rate, wastewater, stormwater and flood protection rates, and targeted rates for Solar Saver;
· Staff costs – salaries plus overheads such as training, super, professional fees and office accommodation expenses;
· Depreciation – includes all depreciation, and any losses on asset disposal/retirement;
· Interest – includes debt interest, bank fees, interest rate swap margins, treasury and rating agency fees.
5. Discussion
5.1 The report focuses on performance to date compared with the year to date projections. More detailed financials by sub-activity are in Attachment 1.
5.2 For the 9 months ending 31 March 2015, the activity surplus/deficits are $4.5 million favourable to projection.
5.3 Revenue and expenditure variances are discussed by activity.
5.4 Staff expenses are $877,000 better than budgeted. $204,000 of this variance is related to savings in advertising and marketing costs in the HR Business Unit, office administration costs such as photocopying and postage, and various consultancy costs. The remainder is salary cost savings resulting mainly from vacancies.
Corporate
5.5 The Corporate activity is $985,000 better than projection due to:
5.5.1 Revenue – One thousand dollars better than projection. Unbudgeted interest income from Nelson Region Sewerage Business Unit (NRSBU) for the Nelson City Council (NCC) share of debt is $342,000 year to date (transferred quarterly), offset by unbudgeted interest expenditure for the loans now held by NCC. Council has received a $500,000 special dividend from Port Nelson which has been used to repay debt. This has been included in the projection, but timing differences generate a $125,000 positive variance year to date. The Forestry insurance claim has been settled as projected at $242,000, generating a $60,000 positive timing difference. Income in the Disaster Recovery Fund is $375,000 under projection due to timing of further insurance claims. Internal interest is $214,000 under projection reflecting the timing of capital expenditure.
5.5.2 Expenses – staff $379,000 better than projection. The distribution of staff time over the organisation differs from anticipated and the savings in this activity are mainly in the Policy and Administration and Meeting support sub-activities.
5.5.3 Expenses – other $372,000 better than projection as the contingency has not yet been called on ($112,500) and Civic House expenditure is under projection ($183,000) largely related to the budget sitting in this activity for property condition assessments which as yet has little expenditure recorded against it (timing). There is a saving in cleaning and maintenance in Civic House of $44,000 as a result of the new contract which has realised better rates. The budget for post earthquake inspections (reactive budget), year to date $34,000, currently has no expenditure recorded against it.
5.5.4 This also includes unbudgeted expenditure of $16,000 for external support for the Chief Executive’s Employment Committee. $10,000 was initially approved by Council, $6,000 is additional.
Parks and Active Recreation
5.6 The Parks and Active Recreation activity is $895,000 better than projection due to:
5.6.1 Revenue - $152,000 worse than projection due to timing of income expected from the Golf Course ($71,000) and Tasman District Council’s contribution for the running of Saxton Stadium ($65,000).
5.6.2 Expenses – staff - $181,000 better than projection. The distribution of staff time over the organisation differs from anticipated and there are savings across this activity but particularly in Community Programmes, Esplanade and Foreshore Reserves, Sports Parks and Recreation Liaison.
5.6.3 Expenses – other - $1 million better than projection. Regional Community Facilities is $131,000 over projection as the second grant to the Brook Waimarama Sanctuary Fence has been paid in full ($524,000 - timing). Offsetting this, the budgeted grant to Tasman District Council for the velodrome at Saxton Field has not been made, resulting in an underspend of $620,000 year to date (see major projects status report). There is an underspend of $224,000 year to date in other maintenance categories; in particular no expenditure has yet been made for the Marina maintenance dredging consent/plan ($156,000 – see projects update). A year to date overspend of $112,000 in Sports Parks programmed maintenance is offset by underspends in other programmed maintenance budgets. Year to date there is a saving of $66,000 in consultancy costs (timing) relating to facilities policies and $45,000 saving as the Tahuna Erosion study has not yet been invoiced (timing).
5.6.4 An agreement has been reached to share costs 50:50 between Brook Waimarama Sanctuary Trust & NCC to install a temporary path for cyclists and pedestrian access on the Dun Trail, following the slip. Nelmac have been employed and the work was completed 24 April. Officers are working on other, longer term issues with the Trust in accordance with the Trust’s consent. The cost of this work will be no more than $5,000.
Social
5.7 The Social activity is $374,000 better than projection due to:
5.7.1 Revenue - $198,000 better than projection. Income related to the Arts Festival is $222,000 ahead of projection year to date (timing) and $144,000 ahead of full year projection. The Founders Book Fair proceeds (year to date $94,000 projection) will not come in until the end of the financial year (timing). Rental for the Tahuna Motor Camp is $49,000 over projection year to date after the invoicing of the 2013/14 residual rent wash-up. Community Housing income is $40,000 less than projected, offset by decreased expenditure.
5.7.2 Expenses – other - $99,000 better than projection. Arts Festival $108,000 over projection year to date (timing), offset by income. Maintenance costs are $135,000 underspent year to date across a large range of activities, including for the demolition of the Highland Pipe Band building which has not yet occurred but scheduled to take place by June 2015. Base operating expenses are less than projected by $119,000 over a range of items including electricity, water and cleaning costs.
Economic
5.8 The Economic activity is $204,000 better than projection due to:
5.8.1 Revenue - $321,000 better than projection. The Cricket World Cup (CWC) cost recovery is now largely complete (producing a timing variance) and more than anticipated. Extra expenditures not originally in the budget have been recovered.
5.8.2 Expenses – staff - $140,000 more than budgeted, almost entirely in the Cricket World Cup sub-activity. This is a budgeting issue as the number of staff hours required was within the 4,000 allowed as part of $900,000 expenditure cap in the contract.
5.8.3 Expenses – other - $21,000 better than projection. The Economic Development expenditure is under projection by $313,000. There is no spending to date in the EDA economic development fund, business incubator, facilities marketing and economic impact assessment. Expenses relating to the CWC are now largely complete, producing a timing effect of expenditure being $292,000 more than projection.
Transport
5.9 The Transport activity is $297,000 better than projection due to:
5.9.1 Revenue – overall equates with the projection year to date, however changes in the projection of operating income in this activity (in car parking and unsubsidised roading recoveries) have resulted in an increased charge to rates of $344,000.
5.9.2 Expenses – other - $398,000 better than projection, mainly in unsubsidised roading. The most significant underspends in that activity are:
· Base maintenance ($136,000) including street and sump cleaning and footpath maintenance, expected to be spent over Autumn;
· $146,000 underspent year to date in recovery works from the 2011 emergency event relating to Days Track. A carryover may be required;
· No expenditure year to date for the southern arterial corridor management plan ($73,000 - this was work in connection with the Nelson Plan and has been delayed until the findings of the Southern Arterial Investigation – Annesbrook Drive roundabout to QEII Drive roundabout (run by NZTA) are known.
5.9.3 Depreciation - $185,000 worse than projection. The 2013/14 revaluation of infrastructure assets at $93 million was significantly more than expected when the 2014/15 annual plan was calculated. The increase in the asset base is generating increased depreciation charges.
Environmental Management
5.10 This activity includes Civil Defence and Rural Fire activities, Consents and Compliance, Environmental Programmes, and Solid Waste activities. The Environmental Management activity is $610,000 better than projection due to:
5.10.1 Revenue - $684,000 worse than projection. Landfill fees are $452,000 less than projection and $294,000 less than year to date March last year as a result of the delay in sludge disposal from the wastewater treatment plant and waste from Buller District . Internal income in the solid waste group is $163,000 less than projection and is offset in expenses. Resource consents job sales are $100,000 greater than projection, and building services job sales are $52,000 less than projection. Food premises license fees are currently $71,000 under projection with most of the income for that subactivity being invoiced in the last quarter of the financial year (timing). $91,000 year to date income projected for the Clean Heat Warm Homes programme is part of an end of year adjustment (timing).
5.10.2 Expenses – staff - $156,000 better than projection. This is mainly in Building Services which has until now carried two vacancies, and which has not been charged staff time from the Resource Consents team to the extent anticipated.
5.10.3 Expenses – other - $1.1 million better than projection. Weather Tight Homes expenditure shows $213,000 less than projection year to date. Monitoring the Environment is $207,000 under projection as this sub activity contains a large number of programmes (timing). Landfill expenditure is $334,000 under projection reflecting no expenditure yet for Emissions Trading Scheme (ETS) levies and lower internal charges than anticipated from other solid waste sub-activities. Other sub activities in Solid Waste show year to date savings of $132,000, mainly in Waste Minimisation. Expenditure relating to the Nelson Plan is also under projection by $163,000 but is expected to catch up by the end of the financial year.
Wastewater
5.11 The Wastewater activity is $73,000 worse than projection due to:
5.11.1 Revenue - $253,000 less than projected, related to the NRSBU investment return. The distribution from NRSBU is less than budgeted as input volumes from all five customers are less than anticipated. This will largely correct at year end when additional charges will be made.
5.11.2 Expenses – other - $204,000 less than projection mainly due to lower charges than expected from the Regional Sewage Business Unit.
5.11.3 Depreciation - $167,000 more than projection – resulting from the 2013/14 revaluation of infrastructure assets, see 5.8.3.
Stormwater
5.12 The Stormwater activity is $13,000 better than projection due to:
5.12.1 Expenses – staff - $124,000 better than projection. The distribution of staff time over the organisation differs from anticipated.
5.12.2 Depreciation - $129,000 more than projection – resulting from the 2013/14 revaluation of infrastructure assets, see 5.8.3.
Water
5.13 The Water activity is $656,000 better than projection due to:
5.13.1 Revenue – $57,000 worse than projection. An accrual has been processed pending residential invoicing for the summer months.
5.13.2 Expenses – other - $322,000 better than projection relates to year to date underspend against maintenance budgets, mainly in headworks maintenance where the activity is concentrated in the second half of the year, and in reactive budgets.
5.13.3 Depreciation - $341,000 better than projection. The replacement valuation for the water membranes at the water treatment plant have halved and their expected useful lives increased, generating an expected depreciation saving against projection of $438,000 in the current financial year. This saving has been reflected in the LTP.
Flood Protection
5.14 The Flood Protection activity is $499,000 better than projection.
5.14.1 Expenses – other - $354,000 better than projection. This is year to date underspend against maintenance budgets, including $325,000 relating to emergency recovery works (timing). There has been only minor expenditure year to date for these works (identified from the December 2011 Rainfall Event) as the resource consents have yet to be granted. Works may extend into the next financial year. Reactive maintenance is also underspent.
Capital Expenditure
5.15 Capital expenditure to 31 March 2015 was $19.1 million, $6.6 million (26%) below projection. Details are included in Attachments 2 to 5.
Balance Sheet
5.16 Rates debtors are a credit balance reflecting direct debits received from ratepayers in advance of the upcoming rates invoices.
5.16.1 The increase in trade debtors is as a result of invoicing for the Cricket World Cup, and the movement in the GST receivable balance (which varies significantly due to quarterly rates invoicing).
5.16.2 The reduction in the Debtors and accruals balance is as a result of re-categorising the $8 million advance to NRSBU as a term asset.
6. Projects Update
6.1 Please see Attachments 4 and 5 for progress reports on Council’s major projects.
Live Video Streaming for the Council Chamber
6.2 The Council approved that provision of $15,000 be made in the Annual Plan 2014/15 to provide for video links to Council meetings if feasible. A Business Case has been approved by the IT Steering Committee to purchase a solution from Tandem Studios who provide live streaming solutions for NZ Parliament, Wellington City Council, Christchurch City Council, Taupo District Council and Hawkes Bay Regional Council. This solution has upfront costs of $14,800 and ongoing annual costs of $11,250 which will need to be provided for through the Long Term Plan.
7. Alignment with relevant Council policy
7.1 The finance report is prepared comparing current year performance against the first projection for the draft LTP.
8. Assessment of Significance against the Council’s Significance and Engagement Policy
8.1 There are no significant decisions.
9. Consultation
9.1 No consultation is required.
10. Inclusion of Māori in the decision making process
10.1 No consultation is required.
Nikki Harrison
Group Manager Corporate Services
Attachments
Attachment 1: A1342336 - NCC Summary Performance
Attachment 2: A1342336 - Capital expenditure graph
Attachment 3: A1342336 - Capital expenditure by activity
Attachment 4: A1311288 - Major projects status report – delivery at risk
Attachment 5: A1311288 - Major projects status report – on track
Attachment 6: A1343636 - Balance Sheet
Attachment 7: A1340305 - Interest Rate Position Report
Attachment 8: A793514 - Debtors Report
