Attachments of Finance and Performance Committee

Attachment 1

Annual Report 2017-18

File number: DOC/18/140751
Report number:

ANNUAL REPORT 2017-18

Our City, our community, Our Future

HUTT CITY COUNCIL’s ANNual report to 30 june 2018

Foreword

Council’s vision for Lower Hutt is to create a great place to live, work and play. That is, a city people are proud to live in, where working and investing is a smart choice, and where there’s always something for families to explore.

It’s been a busy year as we work to make this vision a reality. We’re making progress in improving the wellbeing of our residents and visitors, through strong financial management and investing in things that make a real difference.

Council’s new financial strategy was introduced at the start of the 2017/18 financial year. The strategy has helped council to continue to deliver the lowest rate increases in the Wellington region and to maintain debt at prudent and affordable levels necessary for long-term investment in Lower Hutt.

The services we provide and facilities we invest in support people to live happy and healthy lives. In July 2017 we opened the redeveloped Huia Pool+Fitness centre, which includes a hydrotherapy pool for rehabilitation and a learner’s pool. And construction continues on the Ricoh Sports Centre at Fraser Park. It will be a regionally-significant sporting facility catering for a number of codes including rugby, softball, squash, football, hockey and cricket.

Hutt City Council’s work to transform the lives of young people in the high deprivation suburb of Taita was recognised at the Local Government New Zealand EXCELLENCE Awards. We aim to create a brighter future for Lower Hutt tamariki who need it most, through access to facilities, resources and activities that matter, for example the TAKA WIFI initiative, which will ensure that all children in Lower Hutt’s north east suburbs have free access to digital devices and Wi-Fi in their homes.

In September 2017, the Naenae Bowling Centre was opened at Walter Mildenhall Park. The $6 million facility boasts three traditional outdoor greens and one covered artificial green, along with café and bar facilities. The centre has hosted several high-profile events since opening including the international Bowls Premier League, which was broadcast live on Sky Sports.

In October 2017 we opened the Koraunui Stokes Valley Community Hub, which includes a Library, Toy Library, Plunket and several multipurpose spaces available to hire. The hub has had over 240,000 visitors in its first year in operation – a fantastic success. And in November, over 1000 people responded to a community consultation about what they wanted for our next exciting community facility, the Naenae Community Hub.

Driving economic growth and development in the city is crucial to our city’s prosperity. This year we saw our population grow, along with an increase in building consent numbers. Our population is ageing and the challenge for Council is to ensure our city is well-equipped to respond to these changing demographics.

From November 2017 to February 2018, Council asked the public about a proposed District Plan change that would allow for a wider range of housing types and medium density housing in the city. This change is designed to provide for growth and to address issues such as housing affordability, particularly for those looking to buy their first property, plus offer practical options to older residents looking to downsize their homes while remaining in the same suburb.

We’ve also seen good levels of investment in the Lower Hutt CBD. The Riverlink project is generating interest as we look to turn our city centre to face the river, while at the same time protecting homes and businesses from a devastating flood.

We’re also investing in the redevelopment of the Civic Precinct, the heart of our city. The Civic Precinct will be a vibrant, artistic, people-friendly space that our residents are proud of and want to spend time in. We’re well on our way to doing this with the new Lower Hutt Events Centre, refurbished Town Hall, upgraded Riddiford Garden along with past work to upgrade the Dowse, War Memorial Library and surrounds. In October 2017, Highlight: Carnival of Lights, Council’s newest and biggest event, lit up faces all over Riddiford Garden and attracted over 120,000 happy people to our Civic Precinct across four nights.

Our rejuvenation strategy is enhancing the city – making our community a better place to live, work and play. Lower Hutt is in great shape, and we’ll be working hard again next year to make our city even better

Ray Wallace Tony Stallinger

Mayor of Lower Hutt Chief Executive

Contents

Hutt City Council’s Annual Report to 30 June 2018		Infrastructure
Vision for the City		Roading and Traffic
Our year in review		Water Supply
Highlights		Wastewater
Performance		Stormwater
Financials		Solid Waste
Leisure and Wellbeing		Organisation
Integrated Community Services		Elected Members
Libraries		Advice and Support
Museums		Support Services
Aquatics and Recreation		Hutt City Council
Community Hubs, Relationships and Projects		Council Controlled Organisations
Parks and Reserves		Our Community Partnerships
Community Facilities Development Services		Our Finances
Regulatory Services		Independent Auditor’s Report
Emergency Management		Statement of Compliance
Growth, Development and Sustainability		Financial Statements
Local Urban Environment		Notes to the Financial Statements
Economic Development		Reserve Funds
Environmental Consents		Prudence Reporting
Environmental Policy		Appendices
City Promotions		Contact Details

Vision for the city

STRATEGIC DIRECTION: OUR FOUR KEY STRATEGIES AND COMMUNITY OUTCOMES

Our vision is to make our city a great place to live, work and play. The move to rejuvenate and revitalise Lower Hutt is underpinned by four key strategies – Leisure and Wellbeing, Urban Growth, Environmental Sustainability and Infrastructure. The four strategies are linked to the nine community outcomes described in our Long Term Plan. The diagram below shows how these four strategies and their key objectives feed into and out of Council’s Financial Strategy and organisational goals and ultimately come together to achieve our community outcomes.

OUR YEAR IN REVIEW: highlights

OUR YEAR IN REVIEW: PERFORMANCE

OVERALL PERFORMANCE TARGETS SUMMARY

OVERALL KEY PERFORMANCE TARGETS BY ACTIVITY AREA

* A change in research approach after performance targets were set has resulted in some measures not being achieved despite a high level of performance. For more information please see “Customer Research” on page 9.

CUSTOMER RESEARCH

Providing the best local government services is a key priority for Council. To achieve this we need to know how satisfied our customers are, how we can do better and what is most important to our customers so we can prioritise and deliver better value for the community. In 2016-17 we changed our research approach so that we could answer these questions. They key changes in our approach were:

· A more thorough and comprehensive questionnaire so we can really get to the root of what we are doing well and the areas for improvement. The change in questionnaire design also included a new 10-point satisfaction scale rather than the previous 3-point scale so that our customers have more room to express how they are feeling.

· Quarterly surveying rather than a single point-in-time survey to give a more accurate measure of actual customer experience. Rather than asking our customers to recall experiences that may have happened 12 months ago, more regular surveying means the experience is fresher in our customers’ minds. It also helps to iron out any seasonal trends.

While we believe the change has delivered the answers we need to build on the service we already offer, it has meant the 2016-17 and 2017-18 results are not directly comparable to previous years’ results or the target that was set prior to the change in research approach. This has resulted in us not achieving some of the targets sourced from customer research.

LEISURE AND WELLBEING

WHAT The Leisure and Wellbeing Strategy is our long-term approach to improving the cultural, physical and educational wellbeing of our residents. Building skills from a young age has been highlighted as a priority and will be fundamental to achieving this strategy’s goals.

WHY The Census 2013 results indicated that the city will be getting older and that our ethnic population will increase over time. By investing in building and improving our recreation and community facilities we will be adding to Hutt City’s quality of life and providing a more attractive environment.

Hutt City has some of the highest levels of social deprivation in New Zealand, in particular Naenae and Taita, but also in the neighbouring suburbs of Delaney, Epuni East and Waiwhetu North. Council has the important role of ensuring that the quality of life and wellbeing of people connected to these communities is significantly improved.

Leisure and Wellbeing activities are responsible for developing and delivering services through the city's community, cultural and leisure facilities, supporting the local community through safety initiatives, partnerships and funding, and promoting the health, safety and wellbeing of residents and visitors.

The following activities currently fall under Leisure and Wellbeing:

· Integrated Community Services incorporating libraries, museums, aquatics and recreation and community hubs, relationships and projects.

· Parks and Reserves.

· Community Facilities Development.

· Regulatory Services.

· Emergency Management.

Leisure and Wellbeing activities play a broad role in meeting the current and future needs of our communities for good quality local infrastructure, local public services and performance of regulatory functions.

These activities contribute mainly to the following high level goals for the city’s wellbeing, also referred to as ‘community outcomes’:

· A safe community – we live in a safe city, free from crime and injury. Our city is prepared for emergencies.

· A strong and diverse economy – all members of our community benefit from a strong economy, and we attract increasing numbers of visitors.

· An accessible and connected city – members of our community are connected to the digital world.

· Healthy people – we live healthy lives, and our city’s services help to protect our health and our environment.

· A healthy natural environment – we value and protect the natural environment and promote a sustainable city. Resources are used efficiently and there is minimal waste and pollution.

· Actively engaged in community activities – members of our community participate in arts, cultural, sports and other recreational and leisure activities; the city provides for and encourages participation in these activities.

· Strong and inclusive communities – people feel a sense of belonging and are included in the community; our city is built on strong communities that value diversity and support newcomers.

· A healthy and attractive built environment – our built environment enhances our quality of life. Our city is vibrant, attractive, healthy and well-designed. We promote development that is sustainable, and that values and protects our built heritage and the natural environment.

LEISURE AND WELLBEING: PERFORMANCE TARGETS SUMMARY

LEISURE AND WELLBEING: KEY PERFORMANCE TARGETS BY ACTIVITY AREA

Leisure and Wellbeing Financial Summary

For the year ended 30 June:

Leisure and Wellbeing Funding Impact Statement

For the year ended 30 June:

Note: For the Leisure and Wellbeing Funding Impact Statement the Actuals shown for 2017 when compared to the 2016/17 Annual Report are a combination of libraries, museums, aquatics and recreation, and community safety and connections activities.

INTEGRATED COMMUNITY SERVICES

The City and Community Services Group continues to undergo significant change as it responds to the changing needs of our communities as well as Council priorities. Community development efforts are now more integrated and increasingly more community services are being run out of community hubs, including core council services such as libraries, recreation and other services. The Group is also increasingly exploring opportunities for externally funded contracts that are aligned to Council’s vision and priorities. For this reason the libraries, museums, aquatics and recreation, and community safety and connections activities have been combined into a new Integrated Community Services Activity.

LIBRARIES

What we do

We provide a collective resource that is greater than any individual or family could afford or accommodate.

Why we do it

Providing library services enables all citizens to access information, knowledge and learning opportunities that support and strengthen individuals and the community.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Percentage of residents who have used library services during the year > 80% of those expressing an opinion	79%	81%	72%¹	67%¹	Key Research
Residents’ satisfaction with library services > 97% of those expressing an opinion	98%	98%	96%¹	97%¹	Key Research
Number of physical visits per year > 1,200,000	1,020,996	1,204,830	1,415,759²	1,295,893	Monthly management reports
Number of visits via the internet per year
600,000 Libraries Online visits	526,689 Libraries Online visits	579,543 Libraries Online visits	507,974 Libraries Online visits	476,122 Libraries Online visits	Monthly management reports
110,000 pay session on Connect	107,285 pay sessions on Connect	162,182 pay sessions on Connect	176,620 session on Connect	167,926 sessions on Connect	Monthly management reports
Library stock turnover > national mean Note: a number greater than or equal to the national mean shows that our library stock turnover is at least equal to or better than is achieved nationally	5.18 (national mean 3.50 average annual circulation per item)	5.17 (national mean 3.51 average annual circulation per item)	4.18 (national mean 3.36 average annual circulation per item)	4.64 (national mean 3.52 average annual circulation per item)	New Zealand Library Statistics
Library programmes and events delivered Programmes and events delivered to > 40,000 participants	New measure for 2017-18	New measure for 2017-18	New measure for 2017-18	50,107	Management reports

Notes:

1. Research provider and methodology changed in 2016. Resident satisfaction survey results in 2016-17 and 2017-18 not comparable to earlier years or the target.

2. Physical visits to Stokes Valley Library not counted from 16 September 2016.

MUSEUMS

What we do

We operate two museums, which are open to the public at no charge other than for special exhibitions:

The Dowse Art Museum collects and displays fine art as well as decorative and applied arts, and is a conduit for community engagement and participation in the creative arts, underpinned by innovative exhibitions, education and associated community programmes.

The Petone Settlers Museum specialises in showcasing the social history of the early Māori and European settlement of the lower Hutt Valley and Petone area.

Why we do it

By providing museums we enable people to access freely arts and cultural facilities that enrich, inspire and offer a range of lifelong learning opportunities. The museums act as a focal point for the community, enhance cultural life and diversity, and promote civic pride and community values.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Number of museum visits per year > 215,000	216,447	226,946 (Dowse: 218,847, Petone Settlers: 8,099)	225,693 (Dowse 210,402; Petone Settlers 15,291)	229,219 (Dowse 215,990; Petone Settlers 13,229)	Monthly management reports
Residents' satisfaction with the Dowse Art Museum > 93% of those expressing an opinion	95%	95%	87%¹	93%¹	Key Research
Residents' satisfaction with the Petone Settlers Museum > 93% of those expressing an opinion	98%	97%	89%¹	98%¹	Key Research
Public education programmes delivered that meet the needs and expectations of community and school groups
Public education programmes delivered to 6,600 participants	11,535 participants	11,168 participants	10, 159² participants	8,104²participants	Management Reports and Participant Evaluation Forms
> 90% satisfaction	100% satisfaction	100% satisfaction	97% satisfaction	98% satisfaction	Management Reports and Participant Evaluation Forms

Notes:

1. Research provider and methodology changed in 2016. Resident satisfaction survey results in 2016-17 and 2017-18 not comparable to earlier years or the target.

2. Contract with Ministry of Education re-negotiated in January 2017. Target participation reduced to 5,500

AQUATICS AND RECREATION

What we do

We provide six swimming pools and two gyms in Hutt City, and offer quality and accessible tuition in essential water safety and life skills. Our recreational programmes and events are community based and designed to encourage residents to engage in a range of recreational activities. Our events help to make Hutt City a vibrant and festive place to be.

Hutt City Community Facilities Trust (CFT), a Council-Controlled Organisation, develops and owns some of the city’s facilities in partnership with Council, for example the Walter Nash Centre which houses a number of council facilities within the one site.

Why we do it

People’s lives are positively affected by participation in recreation, sports, fitness and cultural activities – and providing these high-quality services at a low user cost makes them available to the whole community. Aquatics and recreational programmes and events also make an important contribution to creating an attractive area for people and businesses considering moving to Hutt City.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Residents’ satisfaction with pools ≥ 93% of those expressing an opinion	96%	97%	93%¹	98%¹	Key Research
Residents’ use of pools ≥ 65%	71%	72%	55%¹	54%¹	Key Research
POOLSAFE accreditation for swimming pool operation, including quality standards for health and safety, water quality, supervision, pool building and operation, signage and other standards Accreditation maintained	Accreditation not maintained (audit completed November 2015)	Accreditation maintained	Accreditation maintained	Accreditation maintained	Annual NZRA External Audit
Cost per visit to Council of aquatic services provided 2017-18 ≤ $4.73	$3.75	$3.72	$5.00²	$4.83³	Management Reports
User satisfaction with ‘Leisure Active’ programmes and events ≥ 92% of those expressing an opinion	97%	96%	93%¹	Not measured⁴	Key Research
Residents’ use of ‘Leisure Active’ programmes and events ≥ 30%	33%	32%	30%¹	Not measured⁴	Key Research

Notes:

1. Resident satisfaction survey results not comparable to previous year or target due to a different research provider and methodology.

2. Attendance and revenue affected by poor summer weather and refurbishment at Huia Pool.

3. Depreciation and overhead costs have increased significantly due to capital redevelopment projects at McKenzie and Huia pools.

4. No longer measured as the programme delivery of ‘Leisure Active’ has changed.

COMMUNITY HUBS, RELATIONSHIPS AND PROJECTS

What we do

We provide community services and partnerships largely through local community facilities. We have funding relationships with government agencies to provide safety initiatives. We also support our community through providing grants to community organisations and groups. We have established two integrated community hubs or facilities that provide core community and other council services, with more hub planned. The hubs are focused on providing communities with opportunities for social and leisure activities, practical help and advice, and contributing to growing social capital.

Why we do it

Our support helps community groups to achieve their goals where they can’t do it themselves because of a lack of resources. We’ve always been committed to responding appropriately to safety issues affecting our community. We work in partnership with others to improve the wellbeing of residents.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Walter Nash Centre User satisfaction with Walter Nash Centre facilities ≥ 90%	New measures for 2016-17	New measures for 2016-17	96%^1,	100%¹	Key Research
Number of visits per year ≥ 450,000			771,000	867,000	Annual Management Report
Three or more significant events held			5 significant events	8 significant events	Annual Management Report
Community Hubs Stokes Valley Community Hub open by October 2017	New measure for 2016-17	New measure for 2016-17	Achieved – Stokes Valley Hub due for completion in October 2017	Achieved – Stokes Valley Hub opened October 2017	Annual Management Report
User satisfaction with Stokes Valley Community Hub facilities ≥ 90%	New measure for 2017-18	New measure for 2017-18	New measure for 2017-18	93%	Key Research
Community organisations’ satisfaction with the availability and quality of our funding service (measured by survey of community organisations) ≥ 90% of those expressing an opinion	93.3% A total of 15 responses were received. Quality of funding process overall – 13 very satisfied, 1 fairly satisfied and 1 not very satisfied	96.68% A total of 32 responses were received. Quality of funding process overall – 22 very satisfied, 9 fairly satisfied and 1 not very satisfied	95.16% A total of 62 responses were received. Quality of funding process overall – 34 very satisfied, 25 fairly satisfied and 3 not very satisfied	95.83% A total of 96 responses were received. Quality of funding process overall – 55 very satisfied, 37 fairly satisfied and 4 not very satisfied	Measured by Survey of Community Organisations
Residents’ perceptions of Hutt City in terms of their sense of safety: ≥ 81% overall of those expressing an opinion	85% overall	84.5% overall	78.8% overall¹	84% overall¹	Key Research
• in their local neighbourhood during the day	96% during the day	96% during the day	92% during the day	95% during the day	Key Research
• in their local neighbourhood after dark	81% after dark	82% after dark	77% after dark	78% after dark	Key Research
• in the Lower Hutt city centre during the day	98% during the day	97% during the day	95% during the day	96% during the day	Key Research
• in the Lower Hutt city centre after dark	66% after dark	63% after dark	58% after dark	68% after dark	Key Research

Notes:

1. Research provider and methodology changed in 2016. Resident satisfaction survey results in 2016-17 and 2017-18 not comparable to earlier years or the target.

Integrated Community Services Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Operating projects

Significant operating variations from the Annual Plan

Capital projects

Significant capital variations from the Annual Plan

INTEGRATED COMMUNITY SERVICES BREAKDOWN

PARKS AND RESERVES

What we do

We provide and maintain active and passive recreational facilities in Hutt City for public enjoyment and wellbeing. With access largely free of charge, our recreation areas are both natural and developed. Most of our work is targeted at maintaining developed areas and retaining bush land in its natural state. ‘Parks and Reserves’ also includes Council cemeteries.

Why we do it

In providing and maintaining parks, reserves, sportsgrounds, street gardens and street trees, we help to create a pleasant environment in which people can live, work and play. Providing and maintaining these areas at high quality and low user cost makes them available to the whole community.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Residents’ satisfaction with:
• sports grounds ≥ 95% of those expressing an opinion	97%	96%	95%¹	95%¹	Key Research
• parks, reserves and gardens ≥ 95% of those expressing an opinion	96%	96%	96%¹	94%¹	Key Research
• cemeteries ≥ 90% of those expressing an opinion	97%	94%	95%¹	95%¹	Key Research
Sports fields meet the standard agreed with sports codes ≥ 95%	95%	95%	95%	95%	Complaints from users during 2017-18 and sportsground audits
Area of parks and reserves per 1000 of population ≥ 25 hectares Note: From 2014-15 the result excludes Greater Wellington Regional Council parks and reserves	26.8 hectares	27.1 hectares	27.1 hectares	27.1 hectares	Reserves Strategy
Percentage of households that have used or visited parks, reserves or gardens in the previous 12 months ≥ 89%	90%	92%	84%¹	84%¹	Key Research
Maintain a high standard of maintenance and development of playgrounds, parks, reserves, gardens and cemeteries 95% of contract and asset management plan requirements met	89%	95%	95%	95%	Playground and parks audits

Notes:

1. Research provider and methodology changed in 2016. Resident satisfaction survey results in 2016-17 and 2017-18 not comparable to earlier years or the target.

Parks and Reserves Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Operating projects

Significant operating variations from the Annual Plan

Capital projects

Significant capital variations from the Annual Plan

COMMUNITY FACILITIES DEVELOPMENT

What we do

Hutt City Council has a Long Term Integrated Facilities Plan which provides a clear guide for Council and community decision-making regarding the future development of community facilities. The Community Facilities Trust (a Council Controlled Organisation established in August 2012) plays an integral role in assisting Council to implement this plan.

Why we do it

This plan will see a series of ‘integrated community hubs’ cluster civic, social and sporting facilities into more user friendly, efficient and well utilised centres which fit the needs of the communities that make up Hutt City now and into the future. It will also see the development of several world-class regional and nationally significant sporting and community facilities.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Fraser Park Sportsville
User satisfaction with stage 1 Fraser Park facilities ≥ 90%	New measures for 2016-17	New measures for 2016-17	90%	Not measured¹	Annual Management Report
Stage 2 development completed 2017-18	New measures for 2016-17	New measures for 2016-17	Achieved – construction in progress. Contract awarded in May 2017	Construction 60% complete	Annual Management Report
Walter Mildenhall Park Redevelopment Development completed and handed over to tenant 2017-18	New measure for 2016-17	New measure for 2016-17	Achieved – facility officially opening 1 September 2017	Achieved – completed and handed over	Annual Management Report

Community Facilities Trust • Operating and capital expenditure within budget	Achieved	Achieved	Achieved	Achieved	Annual Management Report
• 100% of Council accountability requirements met	Achieved	Achieved	Achieved	Achieved	Annual Management Report

Notes:

1. Not measured due to staff resourcing.

Community Facilities Development Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Operating projects

Significant operating variations from the Annual Plan

Significant capital variations from the Annual Plan

REGULATORY SERVICES

What we do

This activity includes:

· inspections of business and food premises, certifications, and liquor licensing bylaw compliance

· pollution and trade waste control

· monitoring beaches to promote and protect public health and safety

· monitoring and controlling noise and hazardous substances

· animal control services; and

· parking enforcement.

Why we do it

The primary focus for this activity is to promote community safety and wellbeing, and minimise risk to members of the public. The second focus is aimed at providing a safe, convenient and enjoyable city environment, ensuring the city is a pleasant place for residents and visitors alike.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Residents’ satisfaction with:
• animal services ≥ 82% of those expressing an opinion	87%	82%	76%¹	85%¹	Key Research
• enforcement of parking restrictions ≥ 75% of those expressing an opinion	78%	78%	79%¹	82%¹	Key Research
• environmental health services ≥ 75% of those expressing an opinion	100%	100%	Not measured in 2016/17	Not measured in 2017/18²
Animal services open 300 days per year 100%	100%	100%	100%	100%	Monthly management report
Dog complaints are responded to:
• > 95% within 30 minutes for dog attacks	99%	96%	95%	95%	Monthly management report
• > 95% within 24 hours for other complaints	98%	98%	95%	95%	Monthly management report
Food premises registered or licensed:
• > 90% registered within 30 days of application (for premises operating under the Food Hygiene Regulations 1974)	100%	100%	100%	100%	Computer Database Records
• > 90% within three months (for premises with a Food Control Plan operating under the Food Act 2014)	98%	100%	100%	100%	Computer Database Records
Noise complaints responded to within 45 minutes ≥ 85% noise complaints responded to within	93%	91%	91%	85%	Monthly management report

Notes:

1. Research provider and methodology changed in 2016. Resident satisfaction survey results in 2016-17 and 2017-18 not comparable to earlier years or the target.

2. Not measured due to change in research methodology

Regulatory Services Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Significant operating variations from the Annual Plan

Capital projects

Significant capital variations from the Annual Plan

EMERGENCY MANAGEMENT

What we do

Hutt City Council is joined with all the city and district councils in the region to form a Civil Defence and Emergency Management (CDEM) Group under the CDEM Act of 2002. From 1 July 2012 all emergency management staff and resources have been pooled together with the expectation of improved effectiveness from increased scale and coordination, as well as efficiencies from the centralised provision of services such as training and public education.

This team:

· leads the preparation and review of the Wellington Region CDEM Group Plan and associated plans

· educates people about the risks they face and how to prepare for emergency events

· maintains the Wellington Region CDEM Group’s Emergency Operation Centres so they can be quickly activated to manage an emergency event, and

· works with central government, emergency services, welfare groups, lifeline utilities and a wide range of interested and affected organisations on emergency management issues.

Local capability has been retained to enable an effective local response to emergencies, and to continue to develop, implement and monitor city-wide emergency management plans, and promote community preparedness for emergencies.

We also manage rural fire under the Forest and Rural Fires Act 1975 and the Forest and Rural Fires Regulations 2005. The Council maintains:

· a fire plan for the district

· a fully operational Volunteer Rural Fire Force

· a Rural Fire Permit database and permitting process, and

· relationships with other councils and the National Rural Fire Authority to develop regional mitigation strategies, response protocols, and to promote community awareness.

Why we do it

The Wellington region is exposed to a wide range of natural and man-made hazards, including earthquake, flooding, landslide, tsunami, storm, biological, chemical and terrorism threats. However, there is a great deal that we can do to reduce the impact of these hazards on our community. Our approach to emergency management and rural fire is based on the principles of reduction of risk, readiness, response and recovery.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Percentage of households that are prepared for a civil defence emergency ≥ 75% of those expressing an opinion	82%	81%	22%^{1, 2}	27%^{1, 2}	Key Research
Time to activate Emergency Operations Centres (EOC) EOC activated within one hour of any incident or notification of a likely threat	Achieved	Achieved	Achieved	Achieved	Management reports
Community Response Plans are developed, maintained, and agreed³ Covering 100% of the geographical area	40%	75%	75%	85%	Management reports

Notes:

1. Research provider and methodology changed in 2016. Resident satisfaction survey results in 2016-17 and 2017-18 not comparable to earlier years or the target.

2. Supporting residents to be resilient and prepared for a civil defence emergency is a priority for Council. Past measures have not provided a realistic view on the percentage of households prepared for a civil defence emergency as the interpretation of “prepared” was not defined. In 2016-17 a new question was asked – “In the event of a natural disaster that resulted in all services being unavailable, how many days would you be able to survive on emergency food and water provisions in your own home?” to provide a more realistic view. Our definition of “prepared” is based on guidelines issued by Wellington Regional Emergency Management Office and our recent earthquake experience in November 2016. According to these guidelines, all households in the Wellington region should have enough food and water to last them at least seven days in the event of an emergency. According to this definition, around a quarter of households are prepared. However, a higher proportion indicated they had enough emergency food and water provisions at home to last more than three days. This is consistent with guidelines issued by National Civil Defence who recommend households should have enough food and water to last at least three days.

3. Community Response Plans are no longer needed to be signed off by the Mayor or the Council

Emergency Management Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Significant operating variations from the Annual Plan

Capital projects

Significant capital variations from the Annual Plan

GROWTH, DEVELOPMENT AND SUSTAINABILITY

WHAT

The Urban Growth Strategy is Council’s approach to managing growth and development in Hutt City to 2032. It focuses on how much we want the city to grow, where new homes and businesses will be accommodated, and what will be done to support and encourage this development.

The Environmental Sustainability Strategy focuses on opportunities and risks we face in regard to our environment. It addresses potential issues, and provides short-term, mid-term and long-term solutions for change. This Strategy guides all future decision-making for Council including:

· taking leadership as an ambassador for environmental best practise

· enhancing community engagement and collaboration

· working in partnership with local businesses and organisations

· managing our own response to environmental issues.

WHY

The 2013 Census night result showed that Hutt City had grown by only 537 people in the previous seven years. We recognise growth and development is essential if our city and our communities are to prosper in the medium to long term and that Council needs to be proactive to ensure Hutt City gets its fair share of the region’s growth. In response to this we developed our Urban Growth Strategy. By promoting building and construction we can help our city grow, through businesses and organisations that operate here, and through appropriate housing for the range of residents that live or plan to live here.

Since the Urban Growth Strategy was developed our population growth has exceeded original projections. In 2017, the total population of Lower Hutt was estimated to be 104,700 people. This indicates an increase of 3,500 people compared to 2013, when it was estimated to be 101,200 people. The recent growth, is expected to be consistent, reaching 110,000 people by 2032.

Our environment is facing some major challenges, and we recognise that there is insufficient emphasis on the environment in our existing plans. We want to shift the focus from trying to fit the environment around us, to fitting within our environment.

Growth, Development and Sustainability activities are responsible for developing the economic wellbeing of the city, including delivering promotion of the city, environmental planning and consents functions, and developing the environmental wellbeing of the city including environmental education.

The following activities fall under Growth, Development and Sustainability:

· Local Urban Environment.

· Economic Development.

· Environmental Consents.

· Environmental Policy.

· City Promotions.

Growth, Development and Sustainability activities play a broad role in meeting the current and future needs of our communities for good quality local infrastructure, local public services and performance of regulatory functions.

These activities contribute mainly to the following high level goals for the city’s wellbeing, also referred to as `community outcomes’:

· A safe community

· A strong and diverse economy

· An accessible and connected city

· Healthy people

· A healthy natural environment

· Actively engaged in community activities

· Strong and inclusive communities

· A healthy and attractive built environment.

GROWTH, DEVELOPMENT AND SUSTAINABILITY: PERFORMANCE TARGETS SUMMARY

GROWTH, DEVELOPMENT AND SUSTAINABILITY: KEY PERFORMANCE TARGETS BY ACTIVITY AREA

Growth, Development and Sustainability Financial Summary

For the year ended 30 June:

Growth, Development and Sustainability Funding Impact Statement

For the year ended 30 June:

LOCAL URBAN ENVIRONMENT

What we do

We work to develop an urban environment that will enhance the city’s image, attracting people, businesses and investment, and meet our community’s needs and aspirations, while recognising the important role of our heritage and features.

We:

· advocate for good long term spatial and urban form solutions through expert design advice

· preserve and protect our heritage buildings, reflecting and enhancing our distinctive character and identity

· implement environmental policies and plans for Hutt City’s sustainable development, including environmental education and promotion, and

· run an annual waste minimisation programme to promote the concept of ‘reduce, reuse, recycle’ to businesses and residents.

Why we do it

We recognise that our urban design and infrastructure must support our changing business and community environment. We manage and develop Hutt City’s public spaces and preserve our heritage buildings because this benefits both businesses and our community. It contributes to our point of difference from other cities, supporting local cultures and enhancing how we identify ourselves. We manage our waste (through promoting recycling and waste reduction) to maintain our community’s health and quality of life.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Making Places Project
Events Centre including new halls and atrium open for business early 2018	New measures for 2015-16	Achieved	Not achieved	Not achieved – event centre was opened on 14 July 2018¹	Management report
Residents feel a sense of pride in the way the city looks and feels ≥ previous results	86%	82%	76%²	85%²	Key Research
Residents’ satisfaction with: ≥ 86% of those expressing an opinion
• litter control	90%	77%	86%²	85%²	Key Research
• recycling	93%	86%	88%²	90%²	Key Research
Percentage of households that have used the recycling service in the previous 12 months ≥ 86% of households	90%	84%	Not measured in 2016/17	86%³	Key Research
Tonnes of recycling per annum Increasing	7,584	7,357	7,619	8,235	Monthly Management report

Notes:

1. The Event Centre was opened two weeks after the start of the financial year on 14 July 2018, hosting its first booking on 19 July. The Event Centre project was impacted by the high demand for construction resources which led to delays from suppliers and shortage of human resources, therefore not meeting its planned schedule.

2. Research provider and methodology changed in 2016. Resident satisfaction survey results in 2016-17 and 2017-18 not comparable to earlier years or the target.

3. Other recycling services used include community recycling stations (26%), recycle bays at Silverstream landfill (12%) and the Earthlink recycling shop (7%).

Local Urban Environment Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Operating projects

Significant operating variations from the Annual Plan

Capital projects

Significant capital variations from the Annual Plan

ECONOMIC DEVELOPMENT

What we do

We take a lead role in encouraging Lower Hutt’s growth through:

· creating a business-friendly environment

· facilitating the expansion and creation of local businesses and employment

· increasing tourism and events in Lower Hutt, and

· contributing to regional growth through regional economic development.

Why we do it

We know that individual businesses generally lack incentives to explore opportunities that benefit Hutt City as a whole, as well as themselves. By supporting the business sector and promoting Hutt City as a business location and vibrant city, we generate benefits for local enterprises and our residents.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Urban Growth Strategy
• population growth ≥ 0.6% per annum (to achieve population increase of 110,000 by 2032)	New measures for 2015-16	0.3% Achieved prior to 2015-16	1.4% Estimate change 2015-16 (latest available)	1.25% Estimate change 2016-17 (latest available)	Statistics New Zealand Estimates for June 2016 and June 2017
• number of new homes ≥ 250 new homes per annum first five years and approx 300 per annum for remaining years (to achieve 6000 new homes by 2032)	New measures for 2015-16	232 new homes	325 new homes¹	466 new homes¹	Building consents with Code of Compliance Certificates between 1 July 2017 and 30 June 2018
Hutt City’s economic performance according to the annual Hutt City Economic Profile report, which includes measures such as: Improvement in relative ranking with other cities measured²
• number of businesses	1.30%	0.20%	1.10%	1.30%	Infometrics
• number of full- time equivalents (FTEs) in the workforce	0%	0.20%	0.20%	-0.10%	Infometrics
• Gross Domestic Product (GDP)	1.00%	1.60%	-0.10%	1.4%³	Infometrics
• GDP per capita	0.60%	Figure not available from Infometrics	Figure not available from Infometrics	Figure not available from Infometrics	Infometrics
• high value sectors as percentage of all sectors (by GDP)	1.70%	0.90%	-3.40%	0.40%	Infometrics

Notes:

1. Number of new homes completed closely aligned with building consents in 2016-17.

2. Measures compared against the average results for the previous years presented rather than other cities

3. Differences in historic time series for major sectors. There are multiple reasons why historical data changes and therefore it is difficult to identify which is the major source of change. Each year the time series will change given a number various revisions. The time series in each year should be used independently of the previous years. This would apply to many economic data series in New Zealand, especially for indicators which are statistical constructs such as GDP.

Economic Development Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Operating projects

Significant operating variations from the Annual Plan

Significant capital variations from the Annual Plan

ENVIRONMENTAL CONSENTS

What we do

This activity includes:

· providing resource management and building consents and inspections, and

· regular monitoring to ensure compliance with legislative requirements, the District Plan, resource and building consent conditions and bylaw requirements.

Why we do it

This activity is fundamental to achieving a clean, healthy, attractive and sustainable environment. It’s also a legal requirement for Hutt City Council.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Land Information Memoranda (LIMs) processed to comply with statutory requirements ≥ 95% processed within nine working days	100% processed within nine working days	100% processed within nine working days	99% processed within nine working days	92% processed in nine working days¹	Computer Database Records
Building consent/project information and resource consents processed to comply with the Building Code, Resource Management Act 1991 (RMA) and District Plan requirements ≥ 80% of building and non-notified land use consents processed within 18 working days	87% of building consents processed and 97% of non- notified land use consents processed within 18 working days	91% of building consents processed and 90% of non- notified land use consents processed within 18 working days	95% building consents processed and 81% non-notified land-use resource consents processed within 18 working days.	97% building consents processed and 80% non-notified land use resource consents processed within 18 working days.	Computer Database Records
Resource consents are monitored within five working days of being notified that development is commencing or within six months of the consent being granted, whichever is the sooner ≥ 90% of resource consents monitored within these timeframes	100% of resource consents monitored within five working days	100% of resource consents monitored within five working days	100% of resource consents monitored within five working days	100% resource consents were monitored within five working days	Computer Database Records
	100% of resource consents monitored within six months of the consent being granted	100% of resource consents monitored within six months of the consent being granted	90% resource consents monitored within six months of the consent being granted.	100% resource consents monitored within six months of the consent being granted.	Computer Database Records
Requests for service referred to RMA monitoring and enforcement team responded to within required timeframes 100% acknowledged with 24 hours	97% acknowledged within 24 hours	99% acknowledged within 24 hours	100% acknowledged within 24 hours	100% acknowledged within 24 hours	Computer Database Records
Building consents for fireplaces processed in a timely manner 100% processed within five working days	96% processed within five working days	99% processed within five working days	100% processed within five working days.	100% processed in five working days	Computer Database Records
Building consents for solar panels processed in a timely manner 100% processed within five working days	100% processed within five working days	100% processed within five working days	100% processed within five working days.	100% processed in five working days	Computer Database Records
Code compliance certificates issued within 20 working days to comply with statutory requirements in the Building Act 2004 100% issued 20 working days	100% issued 20 working days	100% issued 20 working days	100% issued in 20 working days	100% issued in 20 working days	Computer Database Records
	99% issued within 18 working days	96% issued within 18 working days	98% issued in 18 working days	99% issued in 18 working days	Computer Database Records

Notes:

1. Slight drop in performance is reflective of an increased number of LIM applications, particularly fast track LIMs.

Environment Consents Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Operating projects

Significant operating variations from the Annual Plan

Significant capital variations from the Annual Plan

ENVIRONMENTAL POLICY

What we do

This activity focuses on developing, reviewing, implementing and monitoring the District Plan.

Why we do it

This activity is fundamental to achieving a clean, healthy, attractive and sustainable environment. It’s also a legal requirement for Hutt City Council.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Percentage of Plan Changes and Notices of Requirements processed within statutory timeframes 100% processed within statutory timeframes	New measure for 2015-16	100%	100%	100%	Section 32 Reports

Environmental Policy Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Significant operating variations from the Annual Plan

Significant capital variations from the Annual Plan

CITY PROMOTIONS

What we do

We promote Lower Hutt through a series of channels, including:

· providing quality online and digital experiences to our customers, and

· managing an integrated year-round events calendar.

Why we do it

Attracting and providing services for visitors to the city is necessary for the city’s economic development. Major events make the city a more vibrant and interesting place, and attract visitors from outside the city.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Residents’ satisfaction with the i-SITE Visitor Information Centre ≥ 95% of those expressing an opinion	96%	97%	79%¹	Not measured²	Key Research
Major events in Hutt City 100,000 people attending events supported by the major event fund	New measure for 2015-16	104,000 attendees	101,500 attendees	154,000 attendees³	Hutt City Council Events Team
Minor events in Hutt City 25 diverse events supported through the minor event fund	New measure for 2015-16	32 events supported	37 events supported	29 events supported⁴	Hutt City Council Events Team

Notes:

1. Research provider and methodology changed in 2016. Resident satisfaction survey results in 2016-17 and 2017-18 not comparable to earlier years or the target.

2. The iSITE visitor kiosk was closed in August 2017

3. Most events exceeded attendance expectations. In particular the new showcase events for the city, HighLight attracted approximately 120,000 visitors over four evenings. A record for any event in our city

4. A diverse range of events were supported across the city by the fund including a mix of cultural, arts, sporting and community engagement.

City Promotions Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Operating projects

Significant operating variations from the Annual Plan

Significant capital variations from the Annual Plan

INFRASTRUCTURE

WHAT

Our long-term approach is to ensure that infrastructure is built and maintained to perform at a high standard, to ensure we are meeting all our legislative requirements and the needs and the expectations of our community, now and into the future. The strategy enables and informs asset management planning and ensures decisions are made in the most efficient and effective way possible.

WHY

The future presents both challenges and opportunities for our infrastructure. The strategy focusses on where improvements can be made in response to the key challenges and opportunities we face:

· natural hazards and the effects of climate change

· changing demand for services stemming from population growth, an ageing population and shifts in preferences

· technological advancements

· sustainability and public health, and

· management practices.

The Strategy goes beyond the scope of our asset management plans and provides a strategic view of the Council’s infrastructure by setting vision, principles and goals, and maintaining consistency across different asset groups, including:

· roading and footpaths

· water supply

· wastewater (sewage treatment and disposal)

· stormwater drainage including flood protection.

Infrastructure activities are responsible for managing the community's infrastructural assets in the form of the roading, water supply, wastewater and stormwater networks, and landfill activities.

The following activities fall under Infrastructure:

· Roading and accessways.

· Water supply.

· Wastewater.

· Stormwater.

· Solid Waste.

Infrastructure activities play a broad role in meeting the current and future needs of our communities for good quality local infrastructure, local public services and performance of regulatory functions.

These activities contribute mainly to the following high level goals for the city’s wellbeing, also referred to as `community outcomes’:

· A safe community – we live in a safe city; our city is prepared for emergencies.

· A strong and diverse economy – a city that grows existing businesses and attracts new business activity, with a focus on the research and development sector; all members of our community benefit from a strong economy.

· An accessible and connected city – a city that is easy to move about with well-designed roads, cycleways and footpaths.

· Healthy people – we live healthy lives, and our city’s services help to protect our health and our environment.

· A healthy natural environment – we value and protect the natural environment and promote a sustainable city; resources are used efficiently and there is minimal waste and pollution.

· A healthy and attractive built environment – our built environment enhances our quality of life; our city is vibrant, attractive, healthy and well-designed; we promote development that is sustainable, and that values and protects our built heritage and the natural environment.

INFRASTRUCTURE: PERFORMANCE TARGETS SUMMARY

INFRASTRUCTURE: KEY PERFORMANCE TARGETS BY ACTIVITY AREA

Infrastructure Financial Summary

For the year ended 30 June:

ROADING AND TRAFFIC

What we do

Our roading and traffic activity includes:

· the professional and technical work involved in managing the city’s roading network

· the improvement and day-to-day operation and maintenance of footpaths, road pavement/reconstruction/upgrades, traffic signals, signs, street lighting, parking services, bridge maintenance and various road safety activities.

We support this work through policy development, forward planning, road safety coordination and various quality and safety management systems.

Why we do it

Having the road corridor in public ownership ensures that all our residents have appropriate access to property and freedom to travel throughout Hutt City. We provide sealed roads, footpaths and streetlights so that motor vehicles, bicycles and pedestrians can travel efficiently and safely.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Residents’ satisfaction with: Better than our historical average or the average of our peer councils, whichever is the higher, for each of these measures³
• street lighting	89%	90%	81%¹	90%¹	Key Research
• roads and gutters being free of litter	90%	88%	72%¹	87%¹	Key Research
• city free of graffiti	92%	91%	91%¹	90%¹	Key Research
• traffic control	88%	89%	80%¹	89%¹	Key Research
• footpaths	85%	80%	82%¹	84%¹	Key Research
• roads	87%	84%	92%¹	90%¹	Key Research
• parking in and around Hutt City	85%	84%	65%¹	77%¹	Key Research
‘Road Condition Index’, which measures the condition of the road surface Hold or improve rating Note: 1. A lower number indicates an improved rating 2. Effectively half of the city is surveyed each year, consequently the results from alternate years should be referred to for comparison	1.2	1.7	1.5 Note: As half the city is surveyed in alternate years the 2016-17 figure needs to be compared with 2014-15	1.4	Data from the Road Assessment and Maintenance Management System (RAMM)
‘Quality of Ride’ measured by the percentage of the road network with roughness less than 150 NAASRA (National Association of Australian State Roading Authorities) counts Hold or improve rating Note: 1. A higher percentage indicates an improved rating 2. Effectively half of the city is surveyed each year, consequently the results from alternate years should be referred to for comparison	79.50%	79.05%	80.88%	77.83%	Data from RAMM
Accident trend (measured by NZTA) (refer to accident trend graph) Contribute to a reducing trend over 10 years	126	135	139	190²	Data from NZTA
Response to service requests – percentage of customer service requests relating to roads and footpaths which are responded to within the timeframe specified in the Long Term Plan >94%	91.48%	92.08%	93.30%	99.57%	Management Report
Percentage of sealed local road network that is resurfaced 8% is the long-term target, however significant year to year variance is expected	New measure for 2015-16	5.30%	5.90%	3.6%	Measured as the resurfacing programme length achieved annually
Percentage of footpaths that fall within the service standard for footpath condition >98%	New measure for 2015-16	97.90%	98.00	97.31%	Data from RAMM

Notes:

1. Research provider and methodology changed in 2016. Resident satisfaction survey results in 2016-17 and 2017-18 not comparable to earlier years or the target.

2. Measure covers the calendar year, not the financial year.

3. Measures compared against the average results for the previous years presented rather than other cities

Injury and fatal crashes within Lower Hutt excluding state highways

Roading and Traffic Funding Impact Statement

For the year ended 30 June:

Roading & Traffic Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Operating projects

Significant operating variations from the Annual Plan

Capital projects

Significant capital variations from the Annual Plan

WATER SUPPLY

What we do

We provide a sustainable and high-quality water supply to our community for domestic and commercial use. We buy bulk water from Greater Wellington Regional Council (GWRC), and then distribute it to the community through our water supply system. We regularly monitor the water quality and plan for the city’s future water supply, including any maintenance and upgrades needed to maintain the required service.

Why we do it

In supplying high-quality, affordable water, we contribute to:

· our community’s health

· community safety (through the water supply system’s fire-fighting capability), and

· industrial and residential development.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Residents’ satisfaction with the city water supply ≥ 95% of those expressing an opinion	95%	90%	97%¹	94%¹	Key Research
Compliance with part four of New Zealand Drinking Water Standards (bacteria compliance criteria) Full compliance	Achieved full compliance	Achieved full compliance	Achieved full compliance	Achieved full compliance	Portable Water Testing Contract Reports
Number of complaints for drinking water: ≤ 140 per 1000 connections • clarity • taste • odour • pressure or flow • continuity of supply • responsiveness to issues	New measures for 2015-16	Achieved 10.17	Achieved: 12.49	Achieved: 16.03	Wellington Water SLA spreadsheet
Median response time for:	New measures for 2015-16	Achieved			Operations and Maintenance Contract Monthly Report
• attendance for urgent callouts ≤ 60 minutes		43 minutes	Achieved: 45 minutes	Achieved: 38 minutes
• resolution of urgent callouts ≤ Four hours		2.82 hours	Achieved: 3.38 hours	Achieved: 2.9 hours
• attendance for non-urgent callouts ≤ 36 hours		24.37 hours	Not achieved: 42.12 hours²	Not achieved: 47.9 hours²
• resolution of non-urgent callouts ≤ 15 days		1.10 days	Achieved: 1.93 days	Achieved: 2.70 days
Average drinking water consumption per resident per day 345 litres per day	New measure for 2015-16	Not achieved: 355 litres per day	Not achieved: 352 l/p/d	Not achieved: 378 l/p/d³	Wellington Water SLA spreadsheet
Percentage of real water loss from networked reticulation system ≤ 18% Note: the real water loss measurement is the percentage of water that is lost through leakage on the mains, leakage and overflow at reservoirs and leakage on service connections up to the property boundaries	New measure for 2015-16	Not achieved - 22.5%	Not achieved: 21.6%³	Not achieved: 24.4%⁴	Wellington Water SLA spreadsheet
Quality of water Achieve a ‘b’ grading from the Ministry of Health for the Hutt City water supply Note: the ‘b’ grading indicates the community’s preference for a non-chlorinated water supply. B is the best grading a non- chlorinated water supply can achieve, however Wellington Water Ltd (on behalf of HCC) has implemented a quality management plan across Hutt City’s water supply network that is significantly over and above the minimum drinking water standards	Achieved ‘b’ grading	Achieved a 'b' grading	Achieved a 'b' grading	Achieved a 'b' grading	Ministry of Health Register of Community Drinking Water Suppliers Grading Report
Provide a reliable water supply service Fewer than four unplanned supply cuts per 1000 connections	Achieved 2.2	Achieved 2.46	Achieved: 2.42	Achieved: 2.61	Operations and Maintenance Contract Monthly Report

Notes:

1. Research provider and methodology changed in 2016. Resident satisfaction survey results in 2016-17 and 2017-18 not comparable to earlier years or the target.

2. There has been a significant increase in the number of water network bursts and leaks above normal levels over the extended summer period of this year. This is evident across the region and has meant that the initial response to lower priority (non-urgent) jobs has been slower, as more urgent jobs (eg; bursts) have taken precedence. The number of reported leaks is dropping and contractors are continuing work to clear the back log of non-urgent jobs.

3. Year to date average drinking water consumption is higher than the normal, following a trend in the city since April 2017. Information to date indicates that the issue is mainly related to widespread increase in network leakage and commercial consumption. The leak detection / maintenance contractors are working across the city finding the leaks and fixing them.

4. The water loss estimate is above the target and is likely to include high outdoor water use during the extended summer period. This may not have been fully reflected in the estimated residential consumption. An increase in water leaks reported during period also meant that less urgent leaks were not able to be responded to as quickly as desired, thereby increasing consumption through losses to a degree. Watering restrictions and summer demand strategies were implemented and ongoing leak detection work is continuing to find and fix network leaks throughout Hutt City.

Water Supply Funding Impact Statement

For the year ended 30 June:

Water Supply Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Significant operating variations from the Annual Plan

Capital projects

Significant capital variations from the Annual Plan

WASTEWATER

What we do

We provide a pipe network that takes household and commercial effluent to the Seaview Wastewater Treatment Plant, which treats it to public health and environmental standards. Opened in November 2001, the resource consents under which the treatment plant now operates ensure that all relevant standards are adhered to, and that full compliance with the Resource Management Act 1991 is achieved. The Plant’s operation has led to a significant improvement in the environment. We regularly undertake maintenance and upgrades to maintain the required service levels.

Why we do it

By collecting, treating and disposing of wastewater, we provide a service to residents and businesses that supports development in the city and protects the physical environment and our community’s health.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Residents’ satisfaction with the city wastewater service ≥ 95% of those expressing an opinion	97%	98%	96%¹	95%¹	Key Research
Provide a reliable wastewater service Fewer than 1.2 wastewater incidents reported per kilometre of wastewater reticulation pipeline	0.63 incidents	0.71 incidents	Achieved 0.55 incidents	Achieved 0.52 incidents	Operations and Maintenance Contract Monthly Report
Respond promptly to wastewater disruptions ≥ 97% of requests responded to within one hour of notification	99.50%	99.60%	Achieved: 99.52%	Achieved: 99.33%	Operations and Maintenance Contract Monthly Report
Dry weather wastewater overflows 0 per 1000 connections	New measure for 2015-16	Not achieved 5	Not achieved 0.05	Not achieved 0.05²	Wellington Water SLA
Number of complaints: • wastewater odour • wastewater system faults • wastewater system blockages • responsiveness to wastewater system issues ≤ 30 per 1000 connections	New measures for 2015-16	Achieved: 13.47	Achieved: 25.42	Achieved: 22.80	Wellington Water SLA
Median response time for:	New measures for 2015-16				Wellington Water SLA
• attendance time for wastewater overflows ≤ 60 minutes		39 minutes	Achieved: 35 minutes	Achieved: 35 minutes
• resolution time for wastewater overflows ≤ Six hours		1.89 hours	Achieved: 2.52 hours	Achieved: 2.6 hours
Compliance with resource consents for discharges from wastewater system: • number of abatement notices • number of infringement notices • number of enforcement orders • number of convictions No enforcement action	New measures for 2015-16	Achieved Nil	Achieved: Nil	Achieved: No enforcement action	Compliance reports from GWRC

Notes:

1. Research provider and methodology changed in 2016. Resident satisfaction survey results in 2016-17 and 2017-18 not comparable to earlier years or the target.

2. There were two dry weather overflow events, one in the first quarter (August 2017) from Point Howard (Trunk WW) due to a leak in an air valve and another in the second quarter (October 2017) due to a local wastewater main blockage. Both faults were subsequently fixed.

Wastewater Funding Impact Statement

For the year ended 30 June:

Wastewater Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Operating projects

Significant operating variations from the Annual Plan

Capital projects

Significant capital variations from the Annual Plan

STORMWATER

What we do

We provide a stormwater drainage system to manage the surface water run-off from urban catchments, providing flood protection and control. Our objective is to achieve the best possible balance between the level of protection and the cost to our community. This includes maintaining and upgrading assets to maintain the required service levels.

Why we do it

Most of the development in Hutt City is concentrated on flat valley plains with the potential for flooding. We need to control stormwater to protect our community’s health and safety and minimise property damage. A comprehensive stormwater system is the most efficient way to do this.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Residents’ satisfaction with the city stormwater service ≥ 80% of those expressing an opinion	87%	83%	73%¹	86%¹	Key Research
Provide a reliable stormwater service Fewer than 0.5 stormwater incidents reported per kilometre of stormwater pipeline	Achieved 0.12 incidents	Achieved 0.04 incidents	Achieved 0.03 incidents	Achieved 0.03 incidents	Operations and Maintenance Contract Monthly Report
Achieve water quality at main recreational beaches 90% days during the bathing season (1 Dec to 31 Mar) that monitored beaches are suitable for recreational use	89%	91%	Achieved - each monitored beach open 100% of days during the bathing season	Achieved - each monitored beach open 100% of days during the bathing season	Operations and Maintenance Contract Monthly Report
Number of flooding events 0 flooding events	New measure for 2015-16	Achieved - Nil	Not Achieved 1	Not Achieved 1²	Wellington Water SLA spreadsheet
Number of habitable floors flooded (compliant with District Plan) 0 out of 1000 connections per flooding event	New measure for 2015-16	Achieved - Nil	Not Achieved 0.05	Not Achieved 0.03²	Wellington Water SLA spreadsheet
Number of complaints about stormwater system performance ≤ 30 per 1000 connections	New measure for 2015-16	Achieved 1.59	Achieved 11.44	Achieved 10.51	Wellington Water SLA spreadsheet
Median response time to attend a flooding event ≤ 60 minutes	New measure for 2015-16	Achieved 49 minutes	Achieved 48 minutes	Achieved 37 minutes	Wellington Water SLA spreadsheet
Compliance with resource consents for discharges from stormwater system: • number of abatement notices • number of infringement notices • number of enforcement orders • number of convictions No enforcement action	New measures for 2015-16	Achieved - Nil	Achieved - Nil	Achieved - Nil	Compliance Reports from GWRC
Flood protection and control works: the major flood protection and control works that are maintained, repaired and renewed to the key standards defined in the local authority’s relevant planning documents Completion of programme as recorded and reported on by GWRC	New measure for 2015-16	Achieved	Not achieved 85%	Achieved	GWRC

Notes:

1. Research provider and methodology changed in 2016. Resident satisfaction survey results in 2016-17 and 2017-18 not comparable to earlier years or the target.

2. There was one confirmed habitable floor affected in the flooding event on the 13th July 2017. Investigations are completed and recommended remedial works have been carried out. Long term options for mitigating the flooding problems have been investigated and options have been assessed. The recommended option will be prioritised and listed in HCC’s stormwater upgrade programme for future years.

Stormwater Funding Impact Statement

For the year ended 30 June:

Stormwater Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Operating projects

Significant operating variations from the Annual Plan

Capital projects

Significant capital variations from the Annual Plan

SOLID WASTE

What we do

We manage contracts for the collection of the city’s refuse and recycling, and own and operate a landfill at which people and businesses can dispose of residual waste.

Why we do it

Solid waste management is necessary for the health and quality of life of the community, the local economy and the environment.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Residents’ satisfaction with:
• rubbish collection ≥ 93% of those expressing an opinion	96%	94%	95%¹	95%¹	Key Research
• refuse disposal ≥ 91% of those expressing an opinion	82%	88%	85%¹	93%¹	Key Research
No resource consent-related infringement notices received from GWRC 100% compliance	100% compliance	100% compliance	100% compliance	100% compliance	Compliance Reports from GWRC

Notes:

1. Research provider and methodology changed in 2016. Resident satisfaction survey results in 2016-17 and 2017-18 not comparable to earlier years or the target.

Solid waste Funding Impact Statement

For the year ended 30 June:

Solid waste Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Significant operating variations from the Annual Plan

Capital projects

Significant capital variations from the Annual Plan

ORGANISATION

The group that delivers organisational support activities works alongside all the other activities of Council, and includes elected members and the associated secretariat services, strategy and policy development, communications and marketing, customer services, financial services, risk and audit, information services, legal services and human resources.

Organisational support activities support the social, cultural, environmental and economic wellbeing of the city, and include organisation-wide strategies covering Best Local Government Services.

The following activities fall under organisational support:

· Elected Members.

· Advice and Support.

· Support Services.

These activities contribute to all the high level goals for the city’s wellbeing, also referred to as `community outcomes’:

· A safe community

· A strong and diverse economy

· An accessible and connected city

· Healthy people

· A healthy natural environment

· Actively engaged in community activities

· Strong and inclusive communities

· A healthy and attractive built environment

· A well-governed city.

ORGANISATION: PERFORMANCE TARGETS SUMMARY

ORGANISATION: KEY PERFORMANCE TARGETS BY ACTIVITY AREA

Organisation Financial Summary

For the year ended 30 June:

Organisation Funding Impact Statement

For the year ended 30 June:

ELECTED MEMBERS

What we do

Elected members of Hutt City Council have an important role in the community. They:

· provide a governance role for the city

· set Council’s strategic direction, including determining the activities we undertake (within legal parameters), and

· monitor our performance on behalf of the city’s residents and ratepayers.

Our governance structure includes community boards, which provide local input into our decision-making.

Why we do it

The Elected Members activity ensures sound governance and robust decision-making within Hutt City.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Residents’ satisfaction with the Mayor’s and councillors’ performance ≥ 90% of those expressing an opinion	96%	96%	78%¹	82%¹	Key Research
Residents’ satisfaction with the way we spend their rates ≥ 83% of those expressing an opinion	86%	89%	71%¹	75%¹	Key Research
Residents’ satisfaction with our public consultation Improvement on previous year	90%	88%	71%¹	72%¹	Key Research

Notes:

1. Research provider and methodology changed in 2016. Resident satisfaction survey results in 2016-17 and 2017-18 not comparable to earlier years or the target.

Elected members Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Significant operating variations from the Annual Plan

Significant capital variations from the Annual Plan

ADVICE AND SUPPORT

What we do

This activity comprises the processes that support our decision-making, such as strategic planning, policy development and monitoring and reporting.

Why we do it

Professional advice and support are necessary to help us and community boards and committees make informed decisions on behalf of our community.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Councillors are satisfied or more than satisfied with the formal advice they receive from officers ≥ 80% of those expressing an opinion	91%	93%	96%	90%	Survey of Elected and Appointed Members
Councillors are satisfied or more than satisfied with responses to requests for help from officers ≥ 80% of those expressing an opinion	91%	86%	98%	90%	Survey of Elected and Appointed Members
Community board and community committee members are satisfied or more than satisfied with the formal advice they receive from officers ≥ 80% of those expressing an opinion	84%	82%	92%	85%	Survey of Elected and Appointed Members
Community board and community committee members are satisfied or more than satisfied with responses to requests for help from officers ≥ 80% of those expressing an opinion	85%	82%	84%	78%	Survey of Elected and Appointed Members

Advice and Support Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Significant operating variations from the Annual Plan

Significant capital variations from the Annual Plan

SUPPORT SERVICES

What we do

Support Services incorporates the organisation-wide support functions that help us to provide our other activities efficiently and effectively.

Why we do it

The Support Services activity supports all our activities by providing business, legal and support services and tools.

How we measure the success of our services

MEASURE	ACHIEVED 2014-15	ACHIEVED 2015-16	ACHIEVED 2016-17	ACHIEVED 2017-18	SOURCE OF INFORMATION
Staff turnover Less than 12%	13.66%	6.64%	10.90%	11.37%	Monthly Management Reports
Legal and policy requirements No significant instances of non-compliance	One significant instance of non-compliance	One significant instance of non-compliance	No significant instances of non-compliance	No significant instances of non-compliance	Monthly Management Reports
Work-related accidents No more than four resulting in time off work	Three	Nil	Nil	Four	Monthly Management Reports

Support Services Statement of Comprehensive Revenue and Expenses

For year ended 30 June:

Operating projects

Significant operating variations from the Annual Plan

Capital projects

Significant capital variations from the Annual Plan

HUTT CITY COUNCIL

Hutt City Council was established in 1989 through the amalgamation of the former Lower Hutt City, Eastbourne Borough, Petone Borough and Wainuiomata District Councils, and the Hutt Valley Drainage Board. Its jurisdiction covers the city of Lower Hutt

Its purpose is:

· to enable democratic local decision- making and action by, and on behalf of, communities; and

· to meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses.

· Its role is to have particular regard to the contribution that the following core services make to its communities:

· network infrastructure

· public transport services

· solid waste collection and disposal

· the avoidance or mitigation of natural hazards

· libraries, museums, reserves, recreational facilities, and other community infrastructure.

Council Governance

Hutt City Council is governed by a mayor and 12 councillors, with the mayor elected on a city-wide basis and the councillors elected to represent their respective wards, while exercising their powers in the best interests of the city as a whole. There are six wards - Northern, Eastern, Central, Western, Harbour and Wainuiomata – each with two councillors.

Community Boards and Community Panels

Council also works with three community boards covering Eastbourne, Petone and Wainuiomata, and four community panels covering the Northern, Eastern, Central and Western wards.

Each community board has six members elected by the community, plus two councillors from that ward appointed by Council. The only exception is Eastbourne Community Board, which has agreed to have only five elected members.

The role of a community board is to:

· Represent and act as an advocate for the interests of its community.

· Consider and report on any matter referred by Council and any issues of interest.

· Make an annual submission to Council on projects and expenditure in the community.

· Maintain an overview of services provided by Council within the local community.

· Be a channel of communication between the community and Council.

· Undertake any other responsibilities delegated by Council.

The community committees appointed by Council are non-statutory bodies with similar roles to those of community boards. Each committee has four members appointed from the community plus the two ward councillors. Members are appointed according to their skills and experience, including their ability to support existing residents’ associations and similar community groups in their areas and engage positively with Council.

Community Panels

Council has four community panels in the Central, Eastern, Northern and Western ward communities. Each panel consists of up to five community representatives along with two ward councillors.

The role of the panels is to represent and act as an advocate for the interests of their communities. The purpose of the panels is outlined in the general functions outlined below:

· Discuss, debate and provide feedback to Council on all important local issues, city wide matters of significance, Annual Plans and policy setting

· Allocate and manage a Local Community Projects Fund

· Allocate and manage the local Community Engagement Fund for the Central, Eastern, Northern and Western wards to assist and support local community events and initiatives.

Council’s Management Structure

The elected members of Council set the broad strategic direction and policies for the Chief Executive and staff to implement, and audit the results.

The Chief Executive is the sole employee of the elected members of Council, and in turn is the employer of all other council staff members. He is responsible to Council for:

· Implementing its decisions.

· Advising Council, community board and community committee members.

· Ensuring all functions delegated to staff are carried out.

Council monitors the Chief Executive’s performance through a series of performance measures and the Chief Executive is accountable to Council through a quarterly reporting process.

KEY PERFORMANCE INDICATORS

Council management, through its Strategic Leadership Team, has identified three priority areas for the organisation:

PRIORITY AREA	ORGANISATIONAL OBJECTIVES
Services – deliver great customer experiences	Making it easier to do business, through fresh solutions and use of technology Delivering excellent and innovative services that provide value for money
Lead a future focused city	Leading the city’s growth and development to ensure a vibrant and thriving Hutt City Taking action in response to the communities’ changing economic, environmental, social and cultural needs
Staff – achieve through our great people	Providing staff with the environment, skills, information and tools they need to do their jobs

We’ve developed five key performance indicators for these areas, which are additional to the performance measures and targets for each of our 21 key activities.

Budget Management

This key performance indicator compares results with budget targets. All activities are expected to operate within net capital and operating budgets.

For 2017-18, excluding the expected gains on asset revaluations, Council budgeted for an operating deficit of $3.45 million, mainly due to $9 million in grants to fund community rejuvenation projects planned to be undertaken by the Hutt City Community Facilities Trust (CFT). The actual deficit, excluding gains/losses on revaluation of financial instruments, was greater than budget mainly due to reduced capital subsidies, higher employee costs, and higher depreciation costs, offset by increased user charges and vested assets. Capital expenditure was under budget mainly from delays in completing some Council projects. Most of these projects are due to be completed in 2018-19.

Customer Satisfaction

Council is committed to delivering a high level of service to the community. We monitor residents satisfaction through an independent annual survey. Overall our satisfaction levels are high with over four in five (84%) indicating they are satisfied. While overall satisfaction has dropped slightly, the proportion of residents who are very satisfied has increased slightly.

Staff Perceptions

Council measures staff perceptions using the Kenexa Best Workplaces Survey. Current initiatives to support staff include a continued commitment to health and wellbeing, focus on staff engagement and enablement, and strengthening leadership effectiveness.

Project Completion

Every year Council commits to between 200–300 projects through the Annual Plan. Inevitably some projects cannot be completed in time and are usually carried over to be completed in the next financial year. This key performance indicator compares the number of completed projects as a percentage of the number of projects that were budgeted. The target for 2017-18 was 80%.

In 2017-18 a number of projects were delayed or not completed with the completion rate for the year impacted by a work programme containing several very significant projects requiring an increased level of project management. Many of the uncompleted projects have been carried over and are due to be completed in 2018-19. The most significant of these are: CFT - Fraser Park Sportsville ($1.9 million), Making Places Projects ($1.0 million), Strategic Property Purchases ($5.6 million), Cycleway/Shared Paths (Beltway, Wainuiomata Hill, Eastern Bays) ($8.4 million), Cross Valley Link Investigations & Design ($0.9 million), Civic Precinct Parking and Laings Road Upgrade ($0.5 million), and Silverstream Landfill Upgrade ($0.9 million).

Compliance

It is vital for staff, contractors and other businesses associated with Council to comply with the law, contracts, consents, employment agreements, health and safety requirements and Council policy. Council monitors this compliance on a monthly basis, and has a target of no significant cases of non-compliance. We have achieved this target for the second consecutive year.

YEAR	NON-COMPLIANCE INSTANCES
YEAR	INSIGNIFICANT	SIGNIFICANT
2004	9	-
2005	6	-
2006	1	-
2007	3	-
2008	1	-
2009	1	-
2010	1	-
2011	2	-
2012	4	-
2013	1	-
2014	1	-
2015	-	1
2016	-	1
2017	-	-
2018	-	-

COUNCIL CONTROLLED ORGANISATIONS AND ASSOCIATES

SEAVIEW MARINA LIMITED (SML)

Nature and scope of its activities: Council expects the company to own and operate Seaview Marina as a facility for the enjoyment of the Hutt City community without compromising its commercial objectives and environmental responsibilities.

KEY PERFORMANCE TARGETS	2018 TARGET	2018 ACTUAL
Berth occupancy	85%	86%
Trailer park occupancy	95%	99%
Boat yard occupancy	85%	83%
Boat haul out (lifts per year)	550	547
Total revenue	$2,148,767	$2,279,739
Net surplus*	$461,080	$337,159
Return on Investment**	5.0%	5.8%
Manage and operate the marina within its 2016-17 budget	$1,687,687	$1,942,578
Maintain Asset Management Plan as detailed in the operational plan. Completion of maintenance programme	100%	95%
Address non-programmed maintenance within five working days.	100%	81%
Overall Customer Satisfaction	85%	94%
Commercial Pier & Fuel Wharf.	Complete the berths on the south side of H Pier.	The work began in June 2018 and was completed in July 2018. 4 x 14m, 4 x 18m, 1 x 24m and 1 x 26m berths were constructed
Final Stage of pedestrian walkway.	Complete the walkway around the main marina causeway.	Work was started on this project towards the end of 2017 and is substantially completed. However the bad weather in 2018 has meant the project will be completed in 2018/19
North berths on H Pier.	The project was held back as the catamaran berth project on the south side of H Pier took precedent. With the number of twelve metre berths free it was agreed that until the occupancy of this sized berth increased a hold would be put on 10m berths.	Berth development of the 10m berths was put on hold until but would be reviewed in the at the end of the 2018/2019 financial year
Develop a strategy that will encourage the public to use the marina	Upgrade landscaping and public amenities	Pohutakawa trees in planters were installed at the entrance to piers A to E.
	Provide facilities that encourage the general public to the marina	Compass Coffee set up a café on site in 2017 and this has been upgraded with the assistance of Seaview Marina Ltd. This has become a very popular venue for both licensees and the general public. Further enhancements are being considered
	Support the Lowry Bay Yacht Club (LBYC) to encourage boating at the marina	Seaview Marina continues to provide sponsorship to the LBYC. The Company supported the LBYC with the 24 hour race by way of free berths and free servicing packages for hardstand services as prizes. Provided prizes for the LBYC yacht racing series.
	Run an event on the marina to encourage the general public	The second Wellington Boat Show was successfully run at Seaview Marina attracting around 6000 visitors to the marina.
Achieve full compliance with financial, technical and regulatory standards. This includes, Electrical Warrant of Fitness for vessels and Building Warrant of Fitness as well as Hutt City Council and Greater Wellington Regional Council requirements.	100%	100%

* Net surplus is after interest expense and depreciation

** ROE is calculated as net Surplus/ (Deficit) divided by the opening balance of equity at the start of the year

URBAN PLUS LIMITED

Extent to which Council’s policies and objectives in regard to ownership and control of the organisation have been implemented: Council’s objective for this company is for it to own and operate a portfolio of rental housing, develop property in preparation for sale or lease and manage Council property and building assets.

Nature and scope of its activities: Activities include property development, rental property management, facilities management of Council property, provision of strategic property advice to Council and the purchase of surplus property from Council for development.

The Urban Plus Group comprises Urban Plus Limited, UPL Developments Limited (formerly Fairfield Waters Limited), and UPL Limited Partnership (formerly Fairfield Limited Partnership).

KEY PERFORMANCE TARGETS	2018 TARGET	2018 ACTUAL
Property Services
1.1. Operational expenditure within budget (1).	Operating $314,259	Achieved $304,685
1.2. Capital expenditure within budget	Capital $nil	Achieved Nil capital expenditure
1.3. Achieve not less than a 20% net profit margin	20% contribution margin	Achieved
1.4. Resident satisfaction with public halls greater than or equal to peer average, subject to Council funding.	2016 Peer Average 94%	Achieved 97% The result excludes “Don’t Know” responses.
1.5. Resident satisfaction with public toilets greater than or equal to peer average, subject to Council funding.	2016 Peer Average 79%	Achieved 83% The result excludes “Don’t Know” responses.
1.6. Tenant satisfaction with Council-owned community buildings greater than or equal to 90%.	90%	Achieved 100% satisfied The result for satisfied is calculated using “neutral” and “above” responses.
1.7. Council satisfaction with facilities management not less than 90%	90%	Achieved 90% satisfied
Rental Housing
1.8. Operational expenditure within budget. (1)	Operating $915,952	Achieved $746,220
1.9. Capital expenditure within budget	Capital $717,001	Achieved $55,892
1.10. Property portfolio gross earnings of greater than 5% before interest, tax, depreciation and amortization (EBITDA)	5%	Achieved 5.4%
1.11. Tenant satisfaction with the provision of the company’s rental housing greater than or equal to 90%. (2)	90%	Achieved 95%
1.12. Percentage of total housing units occupied by low-income elderly greater than or equal to 85%.	85%	Not Achieved 79.6% identified primary source of income NZ National Superannuation.
1.13. Rentals charged shall not be less than 90% of “market” rent.	90%	Not Achieved 80.3%
1.14. Between 6 and 10 new units added to the portfolio aiming to increase portfolio size to 220 units by June 2020	Between 6 and 10 new units by June 2020	Not Achieved No new units added to the portfolio in 2017-18 financial year.
Property Development
1.15. Operational expenditure within budget (1).	Operating $751,108,	Not Achieved $879,650
1.16. Capital expenditure within budget	Capital $2,617,481	Achieved $1,108,262
1.17. A return of not less than 10% after interest and tax on each project	10%	Not applicable in current year No commercial developments were completed in 2017/18
Professional Property Advice
1.18. Achieve a market return on additional services provided to the shareholder	Achieve a market return on additional services provided to the shareholder	Not applicable Additional services were not charged to the shareholder during 2017/18.

(1) Operating expenditure before depreciation and tax expense

(2) This measure is from a survey of tenants who on a 5 point rating scale, with 3 being ‘neutral’, rated their satisfaction as neutral or better

UPL Developments Limited (formerly Fairfield Waters Limited)

2018 TARGET	2018 ACTUAL
Keep proper books of account and records for UPLDL and UPLLP in accordance with Accounting Standards	Achieved: Proper books of account and records for UPLDL and UPLLP have been kept in accordance with Accounting Standards. This is supported by unqualified audit opinions being issued for UPLDL and UPLLP for the year ended 30 June 2018.
Tender, negotiate and execute on behalf of UPLLP contracts for the Fairfield Waters and other UPLLP developments	Achieved: Fairfield Waters: Contracts negotiated and executed in 2016/17, continued to be managed during 2017/18. Parkview: House construction prices for the Parkview development were tendered and negotiated in 2017/18. House construction contracts are being executed on a lot by lot basis with one lot executed by 30 June 2018. The contract for civil works was tendered and negotiated in 2017/18 and executed in early 2018/19. Contracts for other suppliers are being negotiated and executed as and when required.
Facilitate the payment of contract progress claims for Board approved contracts and payments to other suppliers engaged to provide services or goods to the Fairfield Waters and other ULLP developments/	Achieved: Facilitated the payment of contract progress claims for Fairfield Waters and Parkview developments, as well as payments to other suppliers engaged to provide services or goods on these property development projects.
Organise UPLDL and UPLLP monthly board meetings (excluding December and January), including preparation of agendas and management reports, and recording of meeting minutes.	Achieved: UPLDL and UPLLP board meetings were arranged and held every month from July 2017 to June 2018 except for December 2017 and January 2018. For each board meeting, agendas and various management and financial reports were prepared. Board meeting minutes were recorded and subsequently confirmed as correct or corrected if necessary.

UPL Fairfield Waters Development

MEASURE	2018 TARGET	2018 ACTUAL
Capital expenditure within budget*	$7,421,346	Achieved $5,685,421
Operational expenditure within budget**	$395,458	Achieved $294,344
Return after tax and interest***	10.0%	Achieved 25.0%

* Capital expenditure includes interest expenses

** Operational expenditure excludes cost of commercial development sales

*** The return after tax and interest is calculated by taking the company tax rate (28%) off the profit and dividing by cost of development sales and direct costs attributable to the development

COMMUNITY FACILITIES TRUST

Extent to which Council’s policies and objectives in regard to ownership and control of the organisation have been implemented:

Council’s objective for the CFT is for it to enhance the health and wellbeing of the city’s communities through the effective and efficient provision, development and operation of leisure and community facilities throughout Hutt City.

Hutt City Council’s Integrated Community Facilities Plan will see a series of ‘community hubs’ cluster civic and sporting facilities into more user-friendly, efficient and well- utilised centres which fit the needs of the communities that make up Hutt City now and into the future. The CFT has been entrusted to help Council deliver on this plan.

Council has established the CFT, a team of dedicated and experienced local businesspeople, to lead the rejuvenation of key community facilities, including the development of the Taita Community and Sports Centre, Fraser Park Sportsville, the Regional Bowls Centre and other projects.

Nature and scope of its activities: Council expects the company to: establish a development fund to enable investment and improvement of community facilities, develop new or enhance existing facilities, administer any facilities vested in the CFT, and provide strategic direction, expert advice and champion ongoing investment and development.

KEY PERFORMANCE TARGETS	2018 TARGET	2018 ACTUAL
Operational Management
Operational expenditure is within budget.	100%	Not achieved
All reporting requirements set by Council and the Board of CFT are met in accordance with the Local Government Act 2002, the CFT Statement of Intent and the CFT Deed of Trust.	Statement of Intent by 1 March 2018 Final Statement of Intent by 30 June 2018 Half yearly report by 1 March 2018 Annual Report by 30 September 2018	Achieved Achieved Achieved Achieved
All CFT construction projects have best practice health and safety plans and monitoring in place.	100%	Achieved. CFT receives H&S reports from its main contractor every 10 working days
Facilities Design and Development
All capital expended on design and other consultants is within approved progress project budgets at financial year end.	100%	Achieved
All capital expenditure on approved projects is at or less than approved budget for each project at financial year end.	100%	Achieved. (This is conditional because a final account from the Hawkins Orange Receiver and liquidator has not yet been received)
Project Delivery
Walter Mildenhall Park development	Facility reaches practical completion 1/7/17	Not achieved. The facility achieved a Certificate of Practical Completion in November 2017
Fraser Park Sportsville – Stage 2	Facility construction contract unconditional by 1/7/17 (practical completion 1/12/18)	Achieved. A contract with Armstrong Downes was signed on 25/5/17
Stokes Valley Community Hub	Deliver the facility for tenant fit-out by 31/12/17	Achieved. The building was handed over in November 2017
Facilities Management
All facilities maintain legal compliance, WOFs and/or certification	100%. Building Safety upheld	Achieved
All facilities are leased within three months of completion.	100%. Legal partnerships are secured with users	Not achieved. The lease for the Naenae Bowls Centre is not yet signed. All other building leases are signed.
All facilities have detailed maintenance plans in place within 12 months of completion.	100%. Maintenance programmes instituted to ensure facilities’ amenities values retained and are safe for users	Achieved. 20 year maintenance plans are on file.
Fundraising
Fraser Park Sportsville	At least $1,750,000 pledged before 1/12/18	Achieved. Total fund-raising reached $3,228,000 by 30/6/18. During the 2017/18 year $2,140,122 was raised.
Walter Mildenhall Park Development	At least $150,000 pledged by 30/6/18	Achieved. Naming rights for the complex were sold to Ryman Health Care for $150,000 in May 2018
CFT achieves 80% or better of the agreed fundraising targets set by Council for each of the agreed projects, within the financial year	At least	Achieved. Total fund-raising for all projects during the year reached $2,290,122

WELLINGTON WATER LIMITED

Extent to which Council’s policies and objectives in regard to ownership and control of the organisation have been implemented:

Council’s objective for this company is for it to manage the provision of water services to Hutt City and other shareholding councils.

Nature and scope of its activities:

Council expects the company to manage, for the long term, the water, wastewater and stormwater assets of the shareholding councils and to operate as a successful business, managed on a non-profit basis.

KEY PERFORMANCE TARGETS LEVEL OF ACHIEVEMENT
Compliance with part four of the Drinking Water Standards	Achieved.
Maintain water supply grading from the Ministry of Health	Achieved. Grading has been maintained.
Percentage of days during the bathing season (from 1 November to 31 March) that the monitored beaches are suitable for recreational use	Target is 90% or an increasing trend - Achieved 100%
Percentage of freshwater sites that have a rolling 12 month median value for E.coli that do not exceed 1000cfu/100ml²	Target is 90% of all freshwater sites or an increasing trend - Not achieved 78%¹
Non-consented discharge events from treatment plants	Target is zero - Achieved zero
All activities across the three waters comply with all resource consent requirements, measured by infringement, abatement notices, enforcement orders or convictions	Target is zero - Achieved zero
Availability of three waters network to customers per council
Water reticulation – fewer than 4 unplanned supply cuts per 1000 connections	Achieved 2.61
Wastewater – fewer than 1.2 wastewater reticulation incidents per km of pipeline	Achieved 0.52
Stormwater – fewer than 0.5 stormwater pipeline blockages per km of pipeline	Achieved 0.03
Cumulative number of floors flooded per 1000 connections per council per flooding event	Target is zero - Not achieved 0.03 ²
Water resources preserved for future generations. Measure of awareness of water conservation work and change in behaviour³: • I think I should be conserving more water than I’m currently doing • I have the information I need to be able to conserve more water • Conserving water where I live is necessary	· Target is a decreasing trend - Achieved – 58% · Target is an increasing trend – No change 58% · New question, no target set – 60%
Sufficient water is available to meet unrestricted demand (other than by routine garden watering restrictions) in all but a drought situation that has severity equal to or greater than a one in 50 year drought	Target is no greater than 2% - Not achieved 5.7%⁴
Sustainable drinking water consumption. Average drinking water consumption/resident/day	Target is 345 L/p/d – Not achieved 378 L/p/d
Complete the regional asset management plan seismic resilience work programme	Work will be completed in Quarter 1 (2018/19). This involves completion of alternative water supply stations and acceptance of procured materials e.g. water storage and distribution bladders and tap stands. This project will achieve its outcome of providing emergency water supply to customers.

1. This measure indicates that there may be faults and limitations in the wastewater network that are affecting water quality. Investigations are continuing in a number of catchments to identify public and private network issues. Findings are being used to inform the future works programmes. Improvement of water quality outcomes will depend in part on the implementation of such works.

3. Results presented at a regional rather than local level

4. Currently not achieved due to capacity limited at Te Marua Water Treatment Plant.

OUR COMMUNITY PARTNERSHIPS

We can’t fulfil our role in the Lower Hutt community on our own, and our success depends largely on working closely with other people. We’ve forged a number of close and highly productive working relationships with people and groups in our community, including:

· Contractors, service suppliers, consultants and advisors

· Businesses and their representative organisations

· Local mana whenua and marae

· Local and central government agencies

· Volunteer organisations

· Community groups and individuals

Our community boards and community committees also work closely with people in their local area.

SHARED SERVICES

The bulk of our current shared services are in joint operations with Upper Hutt, overseen by the Hutt Valley Services Committee, a joint committee of the two councils. These include Silverstream landfill, Akatarawa cemetery, the Hutt Valley Trunk Wastewater network including the Seaview Treatment Plant, emergency management, rural fire response, environmental inspections, noise control, dog control, trade waste, eco design advice and swimming pool audit services. In addition we work together to achieve administrative and operating efficiencies in the roading area, participate in the SMART library shared services collaboration, and are part of Wellington Water Limited, a Council Controlled Organisation providing water services to the region, owned by Hutt City Council, Upper Hutt City Council, Porirua City Council, Wellington City Council and Greater Wellington Regional Council. Other initiatives underway include joint District Plan changes, exploration of potential Human Resources shared service opportunities, and the GoShift programme aimed at standardizing and simplifying the building consents process. Council also works closely with Upper Hutt City Council on community and economic development initiatives.

PARTNERSHIPS WITH MAORI

Waiho i te toipoto, kaua i te toiroa

Let us keep close, not far apart

Council has an obligation to take into account the principles of Te Tiriti o Waitangi and to recognise and provide for the special relationships between Maori and their culture, traditions, land and taonga.

The Local Government Act 2002 acknowledges the Crown’s responsibilities under the Treaty of Waitangi and the responsibility to maintain and improve opportunities for Maori to contribute to local government decision-making processes.

The obligation to consult includes recognising those who have mana whenua status. In fulfilling its obligations, Council will also consult other Maori within the city, including the city’s marae. The current memoranda of understanding were revised during the year for the incoming Council to reflect the existing partnerships.

1. Statement of accountings policies

	REPORTING ENTITY
	Hutt City Council (referred to as ‘Council’) is a territorial local authority established under the Local Government Act 2002 (LGA) and is domiciled and operates in New Zealand. Council was first formed as Lower Hutt City Council on 1 November 1989 by the amalgamation of five local authorities. The name was changed to the Hutt City Council by a special Act of Parliament on 8 October 1991. The relevant legislation governing the Council’s operations included the LGA and the Local Government (Rating) Act 2002.

	The Group consists of the ultimate parent, Hutt City Council and its subsidiaries/Council-Controlled Organisations (CCO’s), Seaview Marina Limited, Urban Plus Limited Group and 177 High Street Limited (all 100% owned) and its controlled trust Hutt City Community Facilities Trust. The Urban Plus Limited Group consists of Urban Plus limited and its 100 owned subsidiaries UPL Development Limited and UPL Limited Partnership. Council’s 21% equity share of its associate Wellington Water Services Limited is equity accounted. The Council’s subsidiaries/CCO’s are incorporated and domiciled in New Zealand.

	The Council and Group provide local infrastructure, local public services and perform regulatory functions to the community. Council does not operate to make a financial return. Accordingly, Council has designated itself and the Group as public benefit entities (PBE’s) for financial reporting purposes.

	The Financial Statements of Council and Group are for the year ended 30 June 2018. The financial statements were authorised for issue by Council on 17 October 2018

	BASIS OF PREPARATION
	The financial statements have been prepared on the going concern basis, and the accounting policies have been applied consistently throughout the year.

	Statement of compliance
	The Financial Statements of the Council and Group have been prepared in accordance with the requirements of the LGA and the Local Government (Financial Reporting and Prudence) Regulations 2014 (LG(FRP)R), which includes the requirement to comply with generally accepted accounting practice in New Zealand (NZ GAAP).

	The Financial Statements have been prepared in accordance with Tier 1 PBE accounting standards. These Financial Statements comply with PBE accounting standards.

	Measurement base
	The Financial Statements have been prepared on a historical cost basis, modified by the revaluation of land and buildings, certain infrastructural assets and financial instruments (including derivative instruments), which have been measured at fair value.
	Management is not aware of any material uncertainties that may cast significant doubt on the Group’s ability to continue as a going concern. The Financial Statements have therefore been prepared on a going concern basis, and the accounting policies have been applied consistently throughout the period.

	Presentation currency and rounding
	The Financial Statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($’000), other than the remuneration and the severance payment disclosed in Note 28 and 29 which are rounded to the nearest dollar.

	Standards issued and not yet effective and not early adopted *Impairment of revalued assets* In April 2017, the XRB issued Impairment of Revalued Assets, which now clearly scopes revalued property, plant, and equipment into the impairment accounting standards. Previously, only property, plant, and equipment measured at cost were scoped into the impairment accounting standards. Under the amendment, a revalued asset can be impaired without having to revalue the entire class-of asset to which the asset belongs. This amendment is effective for the 30 June 2020 financial statements, with early adoption permitted.
	Other changes in accounting policies
	There have been no changes in accounting policies.

	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Significant accounting policies are included in the notes to which they relate.
	Significant accounting policies that no not relate to a specific note are outlined below.

	Basis of consolidation
	The consolidated Financial Statements are prepared by adding together like items of assets, liabilities, equity, revenue and expenses, and cash flows of entities in the Group on a line-by-line basis. All intragroup balances, transactions, revenue and expenses are eliminated on consolidation.

	Foreign currency transactions
	Foreign currency transactions (including those subject to forward foreign exchange contracts) are translated into NZ$ (the functional currency) using the spot exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the surplus or deficit in the Statement of Comprehensive Revenue and Expenses

	Goods and services tax (GST)
	Items in the Financial Statements are stated exclusive of GST, except for receivables and payables, which are presented on a GST inclusive basis. Where GST is not recoverable as input tax then it is recognised as part of the related asset or expense.

	The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is included as part of receivables or payables in the Statement of Financial Position.

	The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the Statement of Cash Flows.

	Commitments and contingencies are disclosed exclusive of GST.

	Budget figures
	The budget figures presented in these Financial Statements are those approved by Council in its Annual Plan 2017/2018. The budget figures have been prepared in accordance with NZ GAAP using accounting policies adopted by Council for the preparation of these Financial Statements.
	These figures are approved by Council at the beginning of the year, after a period of consultation with the public as part of the Community Planning process.
	The budget figures do not include budget information relating to the controlled organisations or associates. These figures do not include any additional expenditure subsequently approved by Council outside the Long Term Plan process.

	Critical accounting estimates, judgements and assumptions
	In preparing these Financial Statements, Council and Group management has made estimates, judgements and assumptions concerning the future that affect the reported amount of revenues, expenses, assets and liabilities and the accompanying disclosures. These estimates and assumptions may differ from the subsequent actual results. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

	Infrastructural assets
	There are a number of assumptions and estimates used when performing depreciated replacement cost valuations over infrastructural assets. These include:
	• the physical deterioration and condition of an asset, for example the Council could be carrying an asset at an amount that does not reflect its actual condition. This is particularly so for those assets that are not visible, for example stormwater, wastewater and water supply pipes that are underground. This risk is minimised by Council performing a combination of physical inspections and condition modelling assessments of underground assets;
	• estimating any obsolescence or surplus capacity of an asset; and
	• estimates are made when determining the remaining useful lives over which the asset will be depreciated. These estimates can be impacted by the local conditions, for example weather patterns and traffic growth. If useful lives do not reflect the actual consumption of the benefits of the asset, then Council could be over or under estimating the annual depreciation charge recognised as an expense in the Statement of Comprehensive Income. To minimise this risk Council’s infrastructural asset useful lives have been determined with reference to the NZ Infrastructural Asset Valuation and Depreciation Guidelines published by the National Asset Management Steering Group, and have been adjusted for local conditions based on past experience. Asset inspections, deterioration and condition modelling are also carried out regularly as part of the Council’s asset management planning activities, which gives Council further assurance over its useful life estimates.
	Experienced independent valuers perform Council’s infrastructural asset revaluations.

	Provisions.
	Provisions were raised and management determined an estimate based on the information available. Additional disclosure of these estimates of provisions is included in Note 24. Provisions are measured at the managements best estimate of the expenditures required to settle the obligation at the reporting date, and are discounted to present value where the effect is material.

	Provision for landfill aftercare costs: In determining the fair value of the provision, assumptions and estimates are made in relation to the discount rate, the expected cost of the post-closure restoration and monitoring of the landfill site and the expected timing of these costs. Expected costs and timing of closure are based on the estimated remaining capacity of the landfill, based on the advice and judgement of qualified engineers. The estimates are discounted at a pre-tax discount rate that reflects current market assessments of the time value of money.

	Provision for weathertight homes: In determining the fair value of the provision, assumptions and estimates are made in relation to the expected value of the settlement based on the level of the original claim compared to historical settlement of similar claims. No evaluation has been undertaken to quantify the level of unreported claims.

	The discount rate used is the current New Zealand Government long-term bond rate as at 30 June each year, and the inflation rate used is the annual Consumer Price Index. The discount rate is based on Council’s long-term cost of funds. The inflation factor is based on the expected long-term increase in remuneration for employees.

	Critical judgements in applying accounting policies

	Management has exercised the following critical judgements in applying accounting policies for the year ended 30 June 2018:

	Classification of property
	The Council and Group own a number of properties held to improve housing to pensioners. The receipt of market-based rental from these properties is incidental to holding them. The properties are held for a service delivery objective as part of the Council’s social housing policy. The properties are therefore accounted for as property, plant and equipment rather than as investment property.

	2017-18 Annual Report
Land area	37,998 hectares

Population^{^[1]}
Northern Ward	16,100
Eastern Ward	17,550
Western Ward	16,600
Central Ward	17,100
Wainuiomata Ward	18,450
Harbour Ward	18,900
Total population	104,700

Number of households^{^[2]}
Northern Ward	5,241
Eastern Ward	4,809
Western Ward	5,376
Central Ward	7,989
Wainuiomata Ward	5,982
Harbour Ward	6,597
Total households	35,988

Age¹
0 to 14 years	20.4%
15 to 39 years	33.0%
40 to 64 years	32.7%
65 years	13.9%

Ethnicity²
European	71.8%
Maori	18.5%
Pacific Peoples	12.0%
Asian	10.0%

	2017-18 Annual Report
Total Councils assets as at 30 June 2018	$1,555,650,000
Area of parks and reserves	3,760 hectares
Number of swimming pools	6
Number of libraries	8
Length of roads	484 km
Length of footpaths	248 km
Number of street lights	13,740
Length of wastewater pipes	671 km
Length of stormwater pipes	526 km
Length of water pipes	681 km
Rating system	Capital
Rateable units	39,352
Average rates per residential ratepayer	$2,411
Capital value of rating units	$21,441,248,500
Total land value of rating units (30 June 2018)	$10,833,642,450
Capital value of the city (30 June 2018)	$22,489,654,050