79 01 March 2017
Finance
and Performance Committee
25 January 2017
File: (17/61)
Report no: FPC2017/1/70
Hutt City Community Facilities Trust Six Month Report to 31 December 2016
Purpose of Report
1. To provide the Committee with an update on the Hutt City Community Facilities Trust (CFT) for the six months ending 31 December 2016.
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Recommendations That the Committee receives the half year report from the Hutt City Community Facilities Trust attached as Appendix 1 to the report. |
Background
2. The Local Government Act requires Council Controlled Organisations to deliver to shareholders a half year report on the organisation’s operations within 2 months after the end of the first half of the 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 Chairperson and General Manager of CFT will be in attendance to present their report and answer any questions.
4. Overall, CFT achieved a surplus before depreciation of $3.768M for the six months ended 31 December 2016, compared with a budgeted surplus of $8.108M, resulting in a shortfall against budget of $4.340M.
5. The shortfall against budget is due to lower than planned revenue, mainly as a result of capital funding from Council for CFT development projects (Fraser Park Sportsville and Stokes Valley Community Hub buildings), lagging the phased budget.
6. Stokes Valley Community Hub: The contractor has established site offices and is preparing to demolish the existing buildings as the first stage of the redevelopment. It is expected that this project will be completed in the second quarter of the 2017/18 financial year instead of the planned last quarter of 2016/17.
7. The Fraser Park Sportsville building has been delayed as external fundraising targets have yet to be achieved, coupled with designs needing to be value engineered to deliver savings in the build cost as tenders received exceeded the approved project budget.
8. The Walter Mildenhall Park redevelopment project: the clubrooms, tennis court and petanque courts are nearing completion. The indoor green was delayed as a result of the poor weather, the earthquake and construction tolerance issues in the roof structure that need to be remedied.
Options
9. It is a statutory requirement to present the half year report. There are no other options.
Consultation
10. No requirement for further consultation.
Legal Considerations
11. No requirement for further consultation.
Financial Considerations
12. No further financial considerations noted.
Other Considerations
13. 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 Council Controlled Organisations.
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Hutt City Community Facilities Trust Six Month Report to 31 December (Under Separate Cover) |
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Author: Sharon Page
Senior Management Accountant
Approved By: Brent Kibblewhite
Chief Financial Officer