85 01 March 2017
Finance and Performance Committee
25 January 2017
File: (17/56)
Report no: FPC2017/1/72
Urban Plus Limited Six Month Report to 31 December 2016
Purpose of Report
1. To provide the Committee with an update for Urban Plus Limited (UPL), for the six month period to 31 December 2016.
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Recommendations That the Committee receives the half year report from Urban Plus Limited attached as Appendix 1 to the report. |
Background
2. The Local Government Act requires Council Controlled Organisations to deliver to shareholders a half yearly report on the organisation’s operations within two months after the end of the first half of each financial year. The report should include information required to be reported as outlined in the organisation’s 2016/2017 Statement of Intent.
Discussion
3. The Chair and Chief Executive of UPL will be in attendance to present their report and answer any questions.
4. For the first six months of 2016/2017, UPL achieved a surplus of $462,988 compared with a budgeted surplus of $147,884. This represents a favourable variance against budget of $315,104 and is primarily due to gains on properties sales during the first half of the year. Properties sold were; 58 Cuba Street (2 units), 4-6 Langford Street, 988 & 992 High Street (6 units), and 4 units in McBain Grove.
5. Property Services achieved a surplus for the six months of $33,173 compared against a budget of $23,516 due to lower than planned operating costs.
6. Rental housing achieved a surplus for the six months of $751,977 against a budget of $459,633. This is due to the gains on properties sold.
7. Property development achieved a deficit of $322,163 - $13,102 better than budget.
8. Debt remains at the 30 June 2016 level of $9.0M. Cash invested on call as at 31 December 2016 was $4.85M and cash at bank was $77k. Debt has not been repaid with cash received from property sales being accumulated to provide the bulk of the funding requirement for planned developments and pending strategic land purchases (for further developments), to increase the social housing portfolio in line with UPL’s Statement of Intent.
9. There are no significant events subsequent to the reporting period requiring additional disclosure.
Options
10. No requirement for further consultation.
Consultation
11. No requirement for further consultation.
Legal Considerations
12. No further legal considerations noted.
Financial Considerations
13. No additional financial considerations noted.
Other Considerations
14. In making this recommendation, officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002. Officers believe that this recommendation falls within the purpose of the local government in that it provides councillors with the necessary information to fulfill their governance role over a Council Controlled Trading Organisation.
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UrbanPlus Limited Six Monthly Report to 30 December 2016 (Under Separate Cover) |
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Author: Sharon Page
Senior Management Accountant
Approved By: Brent Kibblewhite
Chief Financial Officer