Agenda of Finance and Performance Committee

FINANCE AND PERFORMANCE COMMITTEE
Membership:	10
Meeting Cycle:	Meets on a six weekly basis, as required or at the requisition of the Chair
Quorum:	Half of the members
Reports to:	Council

HUTT CITY COUNCIL

Finance and Performance Committee

Meeting to be held in the Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt on

Wednesday 6 March 2019 commencing at 5.30pm.

ORDER PAPER

Public Business

1. APOLOGIES

2. PUBLIC COMMENT

Generally up to 30 minutes is set aside for public comment (three minutes per speaker on items appearing on the agenda). Speakers may be asked questions on the matters they raise.

3. CONFLICT OF INTEREST DECLARATIONS

4. Recommendations to Council - 26 March 2019

i) Wellington Water Limited's Shareholders Agreement and Constitution (19/205)

Report No. FPC2019/1/34 by the Chief Executive 9

Chair’s Recommendation:

“That the matter be discussed.”

ii) Hutt City Community Facilities Trust Draft Statement of Intent 2019/20 to 2021/22 (19/166)

Report No. FPC2019/1/47 by the General Counsel 80

iii) Seaview Marina Limited Draft Statement of Intent 2019/20 to 2021/22 (19/167)

Report No. FPC2019/1/48 by the General Counsel 127

iv) Urban Plus Group Draft Statement of Intent 2019/20 to 2021/22 (19/168)

Report No. by the General Counsel

To be circulated under separate cover.

5. Progress Update on the Re-design of Council's Combined Rates Invoice (19/43)

Report No. FPC2019/1/6 by the Rates and Receiveables Team Leader 152

Chair’s Recommendation:

“That the recommendation contained within the report be endorsed.”

6. 2019/20 Revenue Increase and Cost Reduction Target Update (19/218)

Report No. FPC2019/1/37 by the Acting Chief Financial Officer 162

Chair’s Recommendation:

“That the recommendations contained within the report be endorsed.”

7. Financial Report for the Quarter Ended 31 December 2018 (19/29)

Report No. FPC2019/1/5 by the Acting Chief Financial Officer 165

Chair’s Recommendation:

“That the recommendation contained within the report be endorsed.”

8. Seaview Marina Limited Six Month Report to 31 December 2018 (19/71)

Report No. FPC2019/1/35 by the Senior Management Accountant 214

Chair’s Recommendation:

“That the recommendation contained within the report be endorsed.”

9. Urban Plus Group
Six Month Report to 31 December 2018 (19/75)

Report No. FPC2019/1/36 by the Senior Management Accountant 225

Chair’s Recommendation:

“That the recommendation contained within the report be endorsed.”

10. Information Items

a) TechnologyOne SaaS Project Update (19/219)

Report No. FPC2019/1/31 by the Business Transformation Manager 246

Chair’s Recommendation:

“That the information be received.”

b) Bulk Water Supply (19/140)

Memorandum dated 7 February 2019 by the Strategic Advisor, City and Community Services 249

Chair’s Recommendation:

“That the information be received.”

c) Health & Safety Officer Due Diligence Report July 2018 to December 2018 (19/85)

Report No. FPC2019/1/32 by the Health and Safety Wellbeing Advisor 253

Chair’s Recommendation:

“That the information be received.”

d) Finance & Performance Committee Work Programme 2018 (19/30)

Report No. FPC2019/1/7 by the Committee Advisor 258

Chair’s Recommendation:

“That the information be received.”

11. QUESTIONS

With reference to section 32 of Standing Orders, before putting a question a member shall endeavour to obtain the information. Questions shall be concise and in writing and handed to the Chair prior to the commencement of the meeting.

12. EXCLUSION OF THE PUBLIC

CHAIR'S RECOMMENDATION:

“That the public be excluded from the following parts of the proceedings of this meeting, namely:

13. The Hutt City Community Facilities Trust
Six Month Report to 31 December 2018 (19/84)

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

(A)	(B)	(C)

General subject of the matter to be considered.	Reason for passing this resolution in relation to each matter.	Ground under section 48(1) for the passing of this resolution.


The Hutt City Community Facilities Trust Six Month Report to 31 December 2018.	The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities (s7(2)(h)).	That the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exist.

This resolution is made in reliance on section 48(1) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or 7 of that Act which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public are as specified in Column (B) above.”

Donna Male

COMMITTEE ADVISOR

14 06 March 2019

Finance and Performance Committee

15 February 2019

File: (19/205)

Report no: FPC2019/1/34

Wellington Water Limited's Shareholders Agreement and Constitution

Purpose of Report

1. To see the Council’s endorsement of the proposed amendments to the governance documentation for Wellington Water Limited ("WWL" or "Company").

Recommendations

That the Committee recommends that Council:

(i) receives the report;

(ii) agrees to the proposed changes to the Shareholders’ Agreement attached as Appendix 1 to the report;

(iii) agrees to the proposed changes to the Constitution attached as Appendix 2 to the report;

(iv) agrees to the proposed changes to the Wellington Water Committee Terms of Reference attached as Appendix 3 to the report; and

(v) delegates to the Chief Executive, Hutt City Council, the power to finalise the Shareholders’ Agreement and Constitution and make minor amendments to make them consistent with what is approved by other shareholders.

Background

2. At its meeting on 10 September 2018 the Wellington Water Committee (“WWC”) resolved to invite all neighbouring councils to participate in developing a joint submission to the Government’s Three Waters Review. Following endorsement of the submission by the WWC, it was formally approved by seven councils within the Greater Wellington region and, along with the support of mana whenua, was delivered to the Minister of Local Government.

3. In addition, the WWC agreed to review the governance documentation for the WWL to coincide with the submission to allow other local authorities to become shareholders in the Company.

4. At its meeting on 29 November 2018 the WWC resolved to endorse the proposed changes and forward the Shareholders’ Agreement and Constitution to the Shareholder Councils for approval.

5. Generally, the proposed amendments have two key purposes:

(a) the ability of other interested local authorities to become shareholders in the Company; and

(b) the desire for partnership with mana whenua and inclusion in decision-making processes by making Mana Whenua Partners members of the WWC and ensuring that WWL Board members possess Te Ao Māori knowledge and skills.

Additional shareholders

6. The Shareholders Agreement ("SHA"), and the Constitution, currently contemplate a fixed number shareholders, being the five current shareholders. Accordingly, the amendments are focussed on referring to shareholders more generally (as opposed to specifically in relation to the existing five shareholders) and to ensure that the various decision-making mechanisms are able to be applied in the event of additional local authority shareholders joining. To elaborate, the updates provide the following:

Constitution

(a) Clause 3 – By referring to shareholding as set out in the share register of the Company, we can avoid the need to amend the shareholding as set out in the Constitution if one or more new shareholder(s) join the Company.

(b) Clause 4.5 – To make it explicitly clear that all shareholders must be party to the SHA, including in the case of new shareholders, by acceding to the then existing SHA.

SHA

(c) Parties – To enable one or more new shareholder(s) to accede to the SHA by executing Deed(s) of Accession in the form required by WWL.

(d) Clause 1.5 – By referring to shareholding as set out in the share register of the Company, we can avoid the need to amend the shareholding as set out in the SHA if one or more new shareholder(s) join the Company.

(e) Clause 1.6 – To expressly set out the process by which one or more additional local authorities or council controlled organisations may become new Company shareholders.

(f) Clause 13.1 – To remove shareholder contact details from the SHA so that there would not be any requirement to update the SHA as new shareholder(s) join the Company.

7. Note that the addition of a new shareholder will also require the following steps to be taken:

(a) The proposed new shareholder making a request to the Company and the then existing shareholders for the proposed new shareholder to be issued shares in the Company.

(b) The Board of the Company passing a resolution (and signing associated certificates and other documentation as required under the Companies Act 1993) to issue, in such classes and on such terms as the Board thinks fit, shares in the Company to the proposed new shareholder. This will include Class A Shares and Class B Shares, and any amounts payable by the proposed new shareholder to the Company for those shares.

(c) Class A Shareholders of the Company (as defined in the Constitution) passing a Special Resolution waiving the pre-emptive provisions in section 45 of the Companies Act.

(d) All of the shareholders of the Company unanimously agreeing to the issue of new shares to the proposed new shareholder, pursuant to Schedule 2 of the Shareholders' Agreement, and to waive the pre-emptive provisions in section 45 of the Companies Act.

(e) The proposed new shareholder complying with all statutory and regulatory obligations and requirements in order for it to lawfully be able to become a shareholder in a council controlled organisation, including pursuant to the Local Government Act 2002 (note that this needs to be completed by the proposed new shareholder, rather than the Company).

(f) The proposed new shareholder entering into a Deed of Accession acceding to the Shareholders' Agreement.

(g) The Company updating its share register to record any new shareholding.

(h) The proposed new shareholder appointing an elected member to be a member of the Wellington Water Committee.

(i) The proposed new shareholder entering into a Service Level Agreement with WWL.

Partnership with mana whenua

8. The Constitution and SHA do not currently provide for participation by mana whenua, so more extensive updates are required, including key amendments as set out below.

9. Throughout the SHA, updates have been made to ensure WWC Members have equal status and roles (whether nominated by Mana Whenua Partner Entities ("MWPEs") or Council shareholders). As such, WWC Members nominated by the MWPEs have all the governance oversight responsibilities set out in Schedule 3, which includes the responsibility to seek and interview candidates for the WWL Board and approve remuneration of WWL directors.

10. To be clear, while the WWC Members will all have equal rights to participate in discussions on governance and leadership, the matters set out in Part 1 of Schedule 2 will still require unanimous resolution of the Shareholders. Where the Shareholders delegate this decision-making power to their appointed WWC Member, the MWPE-appointed WWC Member(s) will not have the power to participate.

Constitution

(a) Clause 11.9 - To expressly demonstrate the requirement (albeit at a high level) of the WWL Board having knowledge and experience of relevant issues affecting mana whenua.

SHA

(b) Parties – To enable one or more MWPEs to become parties to the SHA by executing Deed(s) of Accession in the form required by WWL. This then attracted some other amendments, to reflect the MWPEs role under the SHA, including under clauses 1.2 and 1.3.2.

(c) Clause 2.1 - To emphasise the importance of The Treaty of Waitangi /Te Tiriti o Waitangi and confirm WWL's commitment to its principles.

(d) Clauses 2.2 to 2.4 – To provide for the process by which a Māori authority may be formally recognised as a MWPE and joined as a party to the SHA.

(e) Clause 3.2 – To provide that the membership of the Wellington Water Committee shall comprise, in addition to the elected members appointed by each shareholder, a WWC Member (and an Alternate) nominated by each MWPE and jointly appointed by the shareholders.

(f) Clause 3.3 – To clarify that the nominating MWPE may give written notice to WWL to remove and replace its nominated WWC Member and /or their Alternate.

(g) Clause 3.5 – To clarify that all WWC Members are expected to be in attendance at meetings of the WWC and that all parties to the SHA will use their reasonable endeavours to ensure their appointed or nominated WWC Member (or their Alternate) is in attendance at each meeting of the WWC.

(h) Clauses 6.3-6.5 – To provide that the Letter of Expectation and Statement of Intent processes also involve the MWPEs, and not just the Shareholders.

(i) Clause 8 – To clarify that all parties are expected to act in a spirit of collaboration and under the principle of no surprises.

(j) Clause 9 – To broaden application of the dispute resolution provisions to all parties (including the MWPEs), not just the shareholders.

(k) Previous clause 10.2 – To remove the ability for one shareholder to terminate another shareholder's participation in the SHA – given the structure of the Company, including every shareholder having a service level agreement with the Company, it is unlikely to ever be beneficial for a shareholder to be excluded from the rights and constraints of the SHA.

(l) Clause 11.1 – To require each party to ensure that it’s nominated and/or appointed WWC Member will keep confidential information obtained from the Company – this will naturally cover each MWPEs and its nominated WWC Member.

(m) Clause 14.8 – To clarify that the SHA does not give rights to any person not a party to the SHA.

(n) Schedule 1, Board Skills Matrix – To add a new requirement so that at least one director possesses the experience and expertise sought from mana whenua.

(o) Schedule 3, Terms of Reference ("TOR") - To bring the TOR in line with the intent of the updated SHA, including updating the quorum for a meeting of the WWC to a majority of WWC Members and referring to the interests of the parties to the SHA (which include MWPE) rather than the interests of the shareholders.

Miscellaneous changes

11. The opportunity has also been taken to suggest some tidy-up changes as follow:

(a) Clause 11.2 – To clarify that Class A shareholders are also entitled to jointly remove directors, not just to simply jointly appoint them.

(b) Clause 12.21 – To correct a typo.

(c) Clause 21.1, definition of "Board Skills Matrix" – To clarify that this is as set out in the SHA – while previously used in the Constitution, this term was undefined and there was no reference to where the Board Skills Matrix can be found.

(d) Clause 21.2.7 – To ensure a working day under the Constitution is interpreted consistently with the requirements of the SHA.

(e) Terms of reference (governance oversight responsibilities) – To clarify that the WWC’s responsibilities do not include proving recommendations regarding the relevant network structure owned by each Shareholder, but instead include providing recommendations in relation to regional studies that the Shareholders should be cognisant of.

(f) Terms of reference (standing orders) – To clarify that it is the standing orders of the party providing secretariat services to the WWC that apply, rather than those of GWRC.

Options

12. The Committee has the options of recommending to Council adoption of the proposed changes with or without modification, or not recommending their adoption.

13. If the proposed changes are not recommended this would maintain the status quo. There would be no mana whenua representation on the WWC and adding any future additional shareholders to WWL would remain an administratively complex and relatively costly process.

14. Note that any recommended modifications to the proposed changes would require submission to and support from the other shareholding councils as well as Hutt City Council.

Consultation

15. The WWC has been engaging with mana whenua representatives in relation to these potential changes.

Legal Considerations

16. Documentation for these decisions has been drafted by Russell McVeagh and reviewed by officers from shareholding councils and WWL, and the WWC.

Financial Considerations

17. There are no significant financial implications.

Other Considerations

18. In making this recommendation, officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002. Officers believe that this recommendation falls within the purpose of local government in that it supports the future needs of the region for the delivery of water services in a cost efficient and culturally sensitive way.

Appendices

No.	Title	Page
1 ⇩	WWL Shareholders Agreement	15
2 ⇩	WWL Constitution	51
3 ⇩	Wellington Water Committee Terms of Reference	76

Author: Tony Stallinger

Chief Executive

Author: Bradley Cato

General Counsel

Approved By: Brent Kibblewhite

General Manager Corporate Services

83 06 March 2019

Finance and Performance Committee

11 February 2019

File: (19/166)

Report no: FPC2019/1/47

Hutt City Community Facilities Trust Draft Statement of Intent 2019/20 to 2021/22

Purpose of Report

1. The purpose of the report is to provide a review of the draft Statement of Intent (SOI) for The Hutt City Community Facilities Trust (CFT) as delivered to Council for Council’s consideration.

Recommendations

That the Committee recommends that Council:

(i) notes that the Board of The Hutt City Community Facilities Trust (CFT) has submitted a draft Statement of Intent (SOI) 2019/20 - 2021/22, attached as Appendix 1 to the report, in accordance with the Local Government Act 2002;

(ii) notes that officers have reviewed the draft SOI for compliance with the Local Government Act 2002 and provided their analysis;

(iii) receives the draft SOI;

(iv) reviews the draft SOI and considers if any modifications should be made; and

(v) provides comment for the Board of the Trust to consider in finalising its SOI (including any modifications suggested by the Committee arising under recommendation (iv) above).

Background

2. The Local Government Act 2002 (LGA) requires the board of a Council Controlled Organisation (CCO) to deliver to its shareholders a draft SOI on or before 1 March of each year.

Discussion

3. The Board of The Hutt City Community Facilities Trust (CFT) has submitted a draft SOI to Council. This is attached in Appendix 1 to the report.

4. The board of a CCO must provide information prescribed by the LGA for the SOI, to the extent is appropriate given the organisation form of the CCO. They must do this for the ‘the group’ – which comprises the CCO and its subsidiaries. The information is required to be provided for the 2019/20 financial year and the 2 years following that (section 9, Schedule 8 of the LGA).

5. The compliance of the company with the legislative requirements for the SOI and a summary of the amendments proposed by the Board for their 2019/2022 SOI are detailed below:

Required Content	Draft SOI Content
(a) the objectives of the Trust	The objectives of the CFT are stated.
(b) a statement of the board’s approach to governance of the group	A statement is included.
(c) the nature and scope of the activities undertaken by the group	The nature and scope of activities are outlined.
(d) the ratio of consolidated shareholders’ funds to total assets, and the definition of those terms	The terms are defined. No shareholder funds are distributed to CFT.
(e) the accounting policies of the group	Accounting policies are outlined.
(f) the performance targets and other measures by which performance of the group may be judged in relation to its objectives	Performance targets are included.
(g) an estimate of the amount or proportion of accumulated profits and capital reserves that is intended to be distributed to the shareholders	There is no intention to pay a dividend to the shareholder.
(h) the kind of information to be provided to the shareholders by the group during the course of those financial years, including the information to be included in each half yearly report	The kind of information to be provided is outlined. The Trust will provide annual and six-monthly reports.
(i) the procedures to be followed before any member or the group subscribes for, purchases, or otherwise acquires shares in any company or other organisation	Information included. Express approval from Council is required.
(j) any activities for which the board seeks compensation from any local authority (whether or not the local authority has agreed to provide the compensation)	No compensation anticipated.
(k) the boards estimate of the commercial value of the shareholders’ investment in the group and the manner in which and the times at which that value is to be reassessed	A statement as to the net value of shareholders investment is provided.
(l) any other matters that are agreed by the shareholders and the board	There is a section added on environmental objectives, which follows a Council resolution (discussed in more detail below)

6. The CFT notes in the introduction that it has recently undertaken a high level strategy review of its future direction and role. Going forward, it proposes to operate in 3 main areas:

a. As the landlord of existing facilities;

b. Through project delivery; and

c. As a leader for proposing new projects.

These are discussed in more detail in the SOI.

7. A new objective has been added in the SOI that could potentially be expanded and refined in the final SOI after discussion with Officers and direction from members. The draft SOI currently recognises the “carbon zero” goal of Council and the resolutions of Council that included its CCOs in this endeavour. Officers recommend working towards more specific performance measures for its CCOs.

8. Officers believe the draft SOI adequately addresses the focus and direction and other priority areas requested in the Letter of Expectation sent by Council on 11 December 2018, a copy of which is attached as Appendix 3. Specifically, the draft SOI has considered:

a. CFT primary focus on leadership and less as a landlord;

b. an emphasis on new facility development and fundraising, supporting non-Council tenants to be successful and deliver maximum benefit to communities;

c. exploring new community facilities opportunities in close discussion with Council;

d. community outcomes;

e. Long term facility planning;

f. environmental objectives; and

g. Health and Safety.

Legal Considerations

9. Council may suggest changes which the Board must consider in finalising its SOI. The Board must consider any comments on the draft SOI that are made within two months of 1 March by the shareholders. The Board must deliver a completed SOI to Council on or before 30 June 2019.

10. Outside of this current process, the Council may, by resolution, require the Board to modify the SOI and the Board must comply (section 5, Schedule 8 LGA), provided that Council first consults the Board.

Financial Considerations

11. The draft SOI contains the financial forecasts for CFT for the three year period commencing 1 July 2019.

12. The Total Equity of CFT is estimated to be $38.9 million at 30 June 2020.

13. CFT’s planned activities for the period covered by its SOI, are funded via retained earnings; rentals from tenants; grants from Council; grants, donations and sponsorships from third parties; and an approved loan agreement with Council. Council loans to CFT are funded by Council through borrowings resulting in nil impact to Council net debt.

Other Considerations

14. In making this recommendation, officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002 (LGA). Officers believe that this recommendation falls within the purpose of the local government in that it is a requirement of the LGA for boards of Council Controlled Organisations to submit to their shareholder, a draft SOI for consideration and on which to provide feedback.

Appendices

No.	Title	Page
1 ⇩	Appendix 1 - CFT DRAFT 2020-2022 SOI	84
2 ⇩	Appendix 2 - CFT DRAFT 2020-2022 SOI (Changes Tracked)	101
3 ⇩	Appendix 3 - Letter of Expectation from CEO HCC	125

Author: Bradley Cato

General Counsel

Approved By: Brent Kibblewhite

General Manager Corporate Services

130 06 March 2019

Finance and Performance Committee

11 February 2019

File: (19/167)

Report no: FPC2019/1/48

Seaview Marina Limited Draft Statement of Intent 2019/20 to 2021/22

Purpose of Report

1. The purpose of the report is to provide a review of the draft 2019-2022 Statement of Intent for Seaview Marina Limited as delivered to Council for Council’s consideration.

Recommendations

That the Committee recommends that Council:

(i) notes that the Board of Seaview Marina Limited (SML) has submitted a draft Statement of Intent (SOI) 2019-2022, attached as Appendix 1, in accordance with the Local Government Act 2002;

(ii) notes that officers have reviewed the draft SOI for compliance with the Local Government Act 2002 and provided their analysis;

(iii) receives the draft SOI;

(iv) reviews the draft SOI and considers if any modifications should be made; and

(v) provides comment for the Board of SML to consider in finalising its SOI (including any modifications suggested by the Committee arising under part (iv) above).

Background

2. The Local Government Act 2002 (LGA) requires the Board of a Council Controlled Organisation (CCO) to deliver to its shareholders a draft SOI on or before 1 March of each year.

Discussion

3. The Board of SML has submitted a draft SOI to Council. This is attached as Appendix 1 to the report.

4. The board of a CCO must provide information prescribed by the LGA for the SOI, to the extent is appropriate given the organisation form of the CCO. They must do this for the ‘the group’ – which comprises the CCO and its subsidiaries. The information is required to be provided for the 2019/20 financial year and the two years following that (section 9, Schedule 8 of the LGA).

5. The compliance of the company with the legislative requirements for the SOI and a summary of the amendments proposed by the Board for their 2019-2022 SOI are detailed below:

Required Content	SML Draft SOI Content
(a) the objectives of the company	The objectives of SML are stated.
(b) a statement of the board’s approach to governance of the group	A comprehensive statement is included.
(c) the nature and scope of the activities undertaken by the group	The nature and scope of activities are outlined.
(d) the ratio of consolidated shareholders’ funds to total assets, and the definition of those terms	This is provided.
(e) the accounting policies of the group	These are provided.
(f) the performance targets and other measures by which performance of the group may be judged in relation to its objectives	Performance measures are included.
(g) an estimate of the amount or proportion of accumulated profits and capital reserves that it is intended to be distributed to the shareholders	This is provided. The SOI notes that there is an expectation of financial returns to Council in the medium term by way of dividends and breakwater lease payments. At this stage, the Board do not foresee the ability to pay a dividend during the 3 years covered by the SOI.
(h) the kind of information to be provided to the shareholders by the group during the course of those financial years, including the information to be included in each half yearly report	The kind of information to be provided is outlined, and includes half yearly reports and annual reports. Financial projections are included in the SOI.
(i) the procedures to be followed before any member or the group subscribes for, purchases, or otherwise acquires shares in any company or other organisation	Information included. This includes the requirement to obtain the express approval of Council.
(j) any activities for which the board seeks compensation from any local authority (whether or not the local authority has agreed to provide the compensation)	No compensation anticipated.
(k) the boards estimate of the commercial value of the shareholders’ investment in the group and the manner in which and the times at which that value is to be reassessed	A statement as to the net value of shareholders investment is provided.
(l) any other matters that are agreed by the shareholders and the board	Environmental targets may need to be suggested by Council, as per their “zero carbon” resolution.

6. With the exception of climate change and Council’s carbon zero target, Officers believe the draft SOI adequately addresses the focus and direction and other priority areas requested in the Letter of Expectation sent by Council on 11 December 2018, a copy of which is attached as Appendix 3.

Specifically, the draft SOI has considered:

a. focusing on completing the remaining in-water developments (as market demands and operating cash flows permit);

b. financial returns to the shareholder by way of breakwater lease payments and in the medium term, dividends;

c. continued support of non-profit ventures connected with the Company’s business;

d. the potential impacts of climate change and “carbon zero” initiatives, and how SML can best respond; and

e. Health and Safety.

7. Council has passed a “carbon zero” resolution which included its CCOs. At this stage, the draft SOI makes reference to this but no specific targets or objectives have been included. A new objective should be added and included in the final SOI following further discussions with Officers and direction from members. Officers recommend working towards more specific performance measures in this area.

Legal Considerations

8. Council may suggest changes which the Board must consider in finalising its SOI. The Board must consider any comments on the draft SOI that are made within two months of 1 March by the shareholders. The Board must deliver a completed SOI to Council on or before 30 June 2019.

9. Outside of this current process, the Council may, by resolution, require the Board to modify the SOI and the Board must comply (section 5, Schedule 8 LGA), provided that Council first consults the Board.

Financial Considerations

10. The draft SOI contains the financial forecasts for SML for the three year period commencing 1 July 2019.

11. The net shareholder’s investment in SML is estimated to be valued at $9.4M as at 20 June 2020.

12. SML’s planned activities for the period covered by its draft SOI, are funded via retained earnings, operating cash flows, and an approved loan agreement with Council. The Council loan to SML is funded by Council through borrowings resulting in nil impact to Council net debt.

13. At this stage, the SML Board do not foresee the ability to pay a dividend during the three years covered by the SOI. Officers will continue to work with the SML Board to evaluate the probable timeframe and quantum of shareholder returns by way of dividends.

Other Considerations

14. In making this recommendation, officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002. Officers believe that this recommendation falls within the purpose of local government in that it is a requirement of the LGA for boards of Council Controlled Organisations to submit to their shareholder, a draft SOI for consideration and on which to provide feedback.

Appendices

No.	Title	Page
1 ⇩	SML DRAFT 2020-2022 SOI	131
2 ⇩	Letter of Expectation Seaview Marina Ltd	150

Author: Bradley Cato

General Counsel

Approved By: Brent Kibblewhite

General Manager Corporate Services

153 06 March 2019

Finance and Performance Committee

08 January 2019

File: (19/43)

Report no: FPC2019/1/6

Progress Update on the Re-design of Council's Combined Rates Invoice

Purpose of Report

1. This report provides the Committee with an update on the re-design of Council’s combined rates invoice.

Recommendations

That the Committee receives this report and notes the revised design of Council’s combined rates invoice, attached as Appendix 1 to the report.

Background

2. In mid-2018, Council requested the Chief Financial Officer to explore design options for Council’s combined rates invoice that made a very clear and definite distinction between Council and Greater Wellington Regional Council (GWRC), respective rates charges. The expectation from Council was that work progressed during the year with a new invoice design “go live” date of 1 July 2019 (or earlier).

3. Council appointed Cr Edwards and Cr Sutton to work with Officers to review the re-design and associated costings.

Discussion

4. Officers have investigated options for a new combined rates invoice which has taken into consideration, the request of Council but also operational improvements sought by Rates Officers.

5. Officers have produced a final revised design which they believe is an improvement on the current distinction between Council and GWRC rates. Further distinction would be possible but the benefit of doing so needs to be balanced against the associated cost, and the possible confusion it could cause to ratepayers. The combined rates invoice also needs to comply with the Local Government (Rating) Act 2002.

6. An example of the revised design for the combined rates invoice is attached as Appendix 1 to this report. The changes made are:

Page 1: Multiple changes including better visibility of the rates between Council and GWRC both in the body of the invoice and in the right hand banner; introducing green colour for GWRC; introducing a field to promote rates rebate; showing payment methods in council order of preference; and clearly showing rates due dates by instalments.

Page 2: Payment method order changed to match preferred order on page 1.

Pages 3 to 7: No changes.

7. To give context to Council’s preferred method of payment, in December 2018 we receipted 48,829 payments. The table below shows how the payments were made up per payment type:

Direct Debit (weekly, fortnightly, monthly or due date)	27,036	55%
Internet or Automatic Payment	18,687	38%
HCC Front Counter (cash/cheque/EFTPOS)	1,843	4%
NZ Post (cash/cheque/EFTPOS)	909	2%
Credit Card	354	1%

8. In addition to the combined rates invoice issued to ratepayers for each of Councils six rates instalment periods, Council does send out separate Rates Assessment Notices for Council and for GWRC, to ratepayers with the combined rates invoice for the first rates instalment period. No changes have been made to the layout or content of the current rates assessment notices. Examples of the rates assessment notices are also included in Appendix 1 (pages 3 to 7).

9. The following table sets out the remaining activities and timings to ensure that Council issues a revised combined rates invoice from 1 July 2019:

Activities	Timing
Provide this Committee with final version of the revised combined rates invoice.	6 March 2019
Complete: · rating system changes and testing · mail house invoice template changes and data mapping · test run of new invoice template	by 30 June 2019
Assess and issue new combined rates invoice.	1 July 2019

Consultation

10. There are no consultation considerations arising from this report. Changes have been discussed and refined with Cr Edwards and Cr Sutton, and subsequently discussed with GWRC.

Legal Considerations

11. Officers renewed the “Rates Collection Agreement” between Council and GWRC in early 2018. A clause in the collection agreement requires Council to seek GWRC approval of any layout changes to the combined rates invoice.

12. Officers have advised GWRC of the final design. GWRC has indicated that they would not unreasonably oppose any layout changes to achieve the objective of clearer distinction between Council and GWRC rates charges. Officers do not anticipate any issues with obtaining GWRC’s final approval.

Financial Considerations

13. Changing the layout of Council’s combined rates invoice has incurred outsourced design costs of approximately $1,800. The mailing house used by Council to email, or print and post the combined rates invoices, has estimated the cost to modify the rates invoice template and to map any data field changes to the revised template, will be approximately $6,000.

14. The above costs will be funded from the budget held by Finance. Officers believe the costs are reasonable and the changes made will address existing ‘flaws’ in the current layout causing confusion to some ratepayers.

Other Considerations

15. In making this recommendation, Officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002. Officers believe that this recommendation falls within the purpose of local government in that it provides Councillors with the necessary information to effectively undertake their governance role.

Appendices

No.	Title	Page
1 ⇩	HCC Combined Rates Invoice Redesign	155

Author: Helen Stringer

Rates and Receiveables Team Leader

Approved By: Brent Kibblewhite

General Manager Corporate Services

164 06 March 2019

Finance and Performance Committee

18 February 2019

File: (19/218)

Report no: FPC2019/1/37

2019/20 Revenue Increase and Cost Reduction Target Update

Purpose of Report

1. To provide the Committee with a progress update on identifying $500,000 of additional revenue and $300,000 of cost reductions for 2019/20 and beyond.

Recommendations

That the Committee:

(i) notes the progress update on identifying $300,000 of cost reductions for the 2019/20 Annual Plan; and

(ii) notes the action taken to generate $500,000 of additional revenue that is now included in the 2019/20 Draft Annual Plan.

Background

2. On 6 June 2018, the Community Plan Committee approved the proposed budget changes for the 2018-2028 Long Term Plan (Report No. CPC2018/3/154).

3. To accommodate these proposed budget changes and to ensure that Council’s borrowing limits (as per its financial strategy) were not exceeded in the 2018-2028 Long Term Plan, the Committee approved increases to forecast revenue of $500,000 per annum and cost reductions of $300,000 per annum, from 2019/20 onwards. These were included as provisions within the budgets.

4. Whilst Audit New Zealand accepted these budget changes, they noted that budget efficiency targets should not be unsupported. Given this was simply a temporary timing difference, Officers committed to replace the provisions and specifically identify the sources for the revenue increases and the cost reductions during 2018/19 for inclusion in the 2019/20 Annual Plan.

5. The Committee at its meeting held on 28 November 2018 was provided with an update on progress to identify the additional revenue and the cost savings. This report now provides a further update and specifics on how the extra revenue and costs savings will be achieved.

Revenue Increase ($500,000 per annum)

6. It was expected that the source of the additional revenue would be targeted primarily at development and reserve contributions, consenting fees and user charges.

7. On 12 February 2019 as part of the consideration of the 2019/2020 Draft Annual Plan, it was reported to the Community Plan Committee that following suspension of the Development Incentives package on 31 December 2018, a significant number of applications for developments were received (104), between 1 July and 31 December 2018.

8. This has resulted in a large increase in the value of potential future remissions. Consequently, user charges and development contributions have increased significantly in the first few years of the 2019/20 Annual Plan compared to the 2018/2028 Long Term Plan resulting in net additional revenue of $11.5M over the next 10 years.

9. The significant expected increase in consent revenues and development contributions arising from the Development Incentives scheme is now included in the 2019/20 Annual Plan. This replaces the additional revenue targets of $500,000 per annum that were included in the 2018/2028 Long Term Plan.

Cost Savings ($300,000 per annum)

10. As a measure to support Council’s financial strategies, officers are targeting a long term reduction of annual operating expenditure by $300,000.

11. Officers have been analysing Council’s expenditure patterns over the years, taking into consideration Council’s potential future direction.

12. Part of the expenditure reduction will be achieved by targeting efficiencies in a combination of operational areas, which include printing, subscriptions, venue hire, operational consumables and many other line items. The savings will be achieved by a combination of reducing use and changing the way we purchase. Our target is to achieve a cost reduction of approximately $150,000 from this stream.

13. The budget for energy (electricity and gas) was identified in the last report as an opportunity. As with the smaller line items, we will be targeting use and the tender process to achieve a contribution to the savings target. The target in this objective is approximately $150,000.

14. The vehicle fleet review has yet to be completed, but we are sure that findings from this review will result in some efficiencies, especially in the way we purchase vehicles (currently predominately lease) and how we use our fleet. We expect that the fleet review will tell us how many and what type of vehicles we should have in our fleet (including electric vehicles), how the fleet should be managed and how we should acquire fleet vehicles (lease vs buy).

15. The achievement of these targets requires the active engagement of Council Officers and Managers. This review has also provided Officers and management an opportunity to discuss financial planning practices and it has been a positive exercise, with many suggestions being put forward by budget managers and other Officers.

Consultation

16. There is no need for consultation. A further update report will be provided to this Committee in meeting cycle 3 of 2019.

Legal Considerations

17. There are no legal requirements in addition to those already noted in this report.

Financial Considerations

18. There are no financial requirements in addition to those already noted in this report.

Other Considerations

19. In making this recommendation, officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002. Officers believe that this recommendation falls within the purpose of local government in that it provides Councillors with the necessary information to effectively undertake their governance role.

Appendices

There are no appendices for this report.

Author: Philip Benseman

Acting Chief Financial Officer

Author: Allen Yip

Strategic Projects Manager

Approved By: Brent Kibblewhite

General Manager Corporate Services

165 06 March 2019

Finance and Performance Committee

07 January 2019

File: (19/29)

Report no: FPC2019/1/5

Financial Report for the Quarter Ended 31 December 2018

Purpose of Report

1. The report sets out Hutt City Council’s (Council) financial performance and position for the quarter ended 31 December 2018, with explanations of key results and variances.

Recommendations

That the Committee notes Council’s financial performance and position for the quarter ended 31 December 2018.

Background

2. The Committee is provided with information on five broad areas of financial performance:

Part A: Statement of Comprehensive Revenue and Expenses

Part B: Statement of Financial Position

Part C: Statement of Cash Flows

Part D: Capital Expenditure Programme and Asset Sales

Part E: Treasury Management

3. In addition, Activity Statements and Project Lists are attached as an Appendix to this report.

Financial Information

4. The information contained in this report excludes all of Council’s Council Controlled Organisations (CCOs). Best endeavours have been made by all Council Officers to ensure the accuracy and completeness of the financial information contained within this report.

5. There is still half of the 2018/19 financial year remaining and Council’s financial performance and position is subject to change in light of any new information.

6. At its last meeting on 28 November 2018 the Committee was advised of two specific financial pressures for 2018/19. These were expected increases in insurance costs, and expected increases the Bulk Water Levies. These along with other expected variances are covered later in this report.

Part A: Statement of Comprehensive Revenue and Expenses

7. The Statement of Comprehensive Revenue and Expenses below covers all of Council’s revenue and operating expenditure and provides the operating surplus or deficit for the six month period to 31 December 2018 and the expected full year forecast compared budget. The layout below is similar to how this information is presented in the 2018/2028 Long Term Plan.

8. Below is a revised Statement of Comprehensive Revenue and Expenses that separates the budgets and costs related to the grants paid to the Hutt City Community Facilities Trust (CFT) and also to the Development Stimulus Package. As previously explained, CFT grants are capital in nature as they are to fund new assets developed by the CFT on behalf of Council. Development Stimulus Package costs are not considered normal operating costs, ie, they are temporary expenses of an investment nature to stimulate capital growth in the city, and are being offset by an underspend in the Urban Growth Strategy capital project.

Note: in the above tables, a positive reflects a favourable impact and a negative (in brackets and red) reflects an unfavourable impact. For carryovers, in terms of the impact on next year, revenue carried over is positive and expenditure carried over is negative.

Financial Performance Summary

Year to Date

9. Excluding Gains/(Losses) on Revaluations of Financial Instruments and Property Revaluations/Sales/Disposals, Council’s financial performance for the half year was $3.0M unfavourable to budget. This was mainly due to reduced capital subsidies from delays in the capital programme, an unbudgeted operating grant payment of $750,000 to the CFT which was incorrectly treated as a loan (in 2018/19) in the 2018-2028 Long Term Plan, and additional funding for Fraser Park Sportsville.

10. To date Council has an unrealised loss of $3.4M on its financial derivatives which is due to derivative interest rates falling further since 30 June 2018. There is no intention to realise these fair value changes (whether gains or losses). This is recognised for accounting purposes only and does not represent a cash loss. To date Council also has realised gains of $3.4M on assets sales/disposals.

11. Including all of the Gains/(Losses), Council’s financial performance for the half year was $3.0M unfavourable to budget.

Full Year Forecast

12. Excluding Gains/(Losses) on Revaluations of Financial Instruments and Property Revaluations/Sales/Disposals, Council is currently forecast to be $3.7M unfavourable to budget at year end.

13. Operating expenditure is forecast to exceed budget by $5.6M mainly due to the following:

· $3.2M overspend on the Development Stimulus Package (although this expenditure is partially offset by a $2.9M reduction in the Urban Growth Strategy capital budget and associated user charges and development contributions);

· $0.59M overspend in the 2018/19 Bulk Water Levy based on year-to-date consumption;

· $0.56M overspend in Landfill operating costs (offset by increased user charges); and

· $0.49M overspend in insurance premiums.

14. The forecast variance in operating expenditure is partially offset by favourable operating revenue of $1.6M in user charges and development contributions related to the Development Stimulus Package and $1.3M from Landfills.

Explanation of Key Revenue Variances

15. Rates

Brief Description	Rates include all rates earned by Council. Rates refunds, rates remissions and rates billed to Council owned properties are excluded.
Year to date variance:	Close to budget but trending unfavourable.
Full Year Forecast Variance:	$184,000 unfavourable to budget as actual growth in the rating information database when rates were set on 28 June 2018 was lower than planned (0.92% vs. 1%) although actual growth as at 30 June 2018 was 1.04%. However the forecast variance relates to the offset for internal rates being higher than expected, resulting in lower net rates revenue for the year than planned. Remissions are also likely to be higher than budgeted.

16. User Charges

Brief Description	All non-rates revenue (including metered water charges), for providing services to the Community. This also includes fines and penalties charged.
Year to date Variance:	Close to budget.
Full Year Forecast Variance:	$1.7M favourable variance mainly due to expected additional Landfill revenue of $1.5M, consents revenue of $0.5M related to the Development Stimulus Package and $0.45M from additional building consents including $0.25M from the build of 1,000 pre-fab homes. The overall favourable variance is reduced by unfavourable forecasts for the Fitness Suites and Learn to Swim of $0.5M, and $0.3M in Reserve Contributions.

17. Operating Subsidies (Including Upper Hutt City Council (UHCC)) and Grants

Brief Description	Includes mainly subsidies received from the New Zealand Transport Agency (NZTA) for its share of Council’s Roading operating maintenance costs and UHCC’s share of wastewater costs.
Year to date Variance:	Close to budget.
Full Year Forecast Variance:	The full year forecast is favourable by $0.3M mainly due to a new footpath maintenance subsidy from NZTA that was agreed after budgets were set.

18. Capital Subsidies

Brief Description	Includes subsidies received for capital works. The majority of subsidies are received from the New Zealand Transport Agency (NZTA) for their share of Council’s spend on Roading projects, plus the spend on the Cycleways/Shared Paths projects.
Year to date Variance:	$2.1M unfavourable to budget mainly due to project delays, particularly on the Cycleways/Shared Paths projects. This is partially offset by unbudgeted subsidy revenue from footpath renewals.
Full Year Forecast Variance:	$1.2M unfavourable to budget mainly due to delays in the Eastern Bays Cycleway which will be carried over to next financial year.

19. Development Contributions

Brief Description	Development Contribution fees go towards the capital costs of providing growth-related infrastructure such as Roading, Water Supply, Wastewater and Stormwater assets required to serve new developments.
Year to date Variance:	$0.25M unfavourable due to the timing of income compared to budget (the later has been spread evenly across the year).
Full Year Forecast Variance:	Favourable forecast due to expected contributions related to applications received from the Development Stimulus Package.

20. Interest Earned

Brief Description	This is revenue received from financial investments.
Year to date Variance:	$0.2M favourable to budget mainly due to more cash held on deposit in first half of year.
Full Year Forecast Variance:	$0.1M slightly favourable to budget mainly due to more cash held on deposit especially in first half of year.

21. Vested Assets

Brief Description	This relates to assets created by external parties that are vested to Council. These are non-cash. Council has no control on the timing or value of assets vested to Council.
Year to date Variance:	$0.64M favourable to budget mainly due to more developments completed to date than expected.
Full Year Forecast Variance:	$0.27M favourable to budget mainly due to more developments expected than budgeted. These are non-cash so have no impact on debt.

22. Other Revenue

Brief Description	This includes petrol tax, sale of goods, animal shelter fees and central government subsidies for Ministry of Health initiatives, Kiwi Sport and Waste Minimisation levies.
Year to date Variance:	$0.16M unfavourable to budget mainly due to an expected commercial contract to dispose waste at the landfill not eventuating. However, regular landfill fees (within user charges) are currently $0.8M favourable to budget.
Full Year Forecast Variance:	$0.13M unfavourable to budget mainly due to the expected one-off commercial contract to dispose waste not eventuating. Regular landfill fees (within user charges), however are expected to be $1.5M favourable to budget.

Explanation of Key Expenditure Variances

23. Employee Costs

Brief Description	Includes total costs of full time employees and fixed term contractors, including PAYE, Kiwi Saver contributions, annual leave entitlements and staff training and development.
Year to date Variance:	$0.25M favourable to budget mainly due to Council-wide staff vacancies.
Full Year Forecast Variance:	$0.22M favourable to budget mainly due to staff vacancies in the first half of the year, particularly in the Environmental Consents team and Information Services.

24. Operating Costs

Brief Description

Includes direct operating costs, excluding internal rates, employee costs, grants paid to the CFT, development stimulus payments, finance charges, support costs and depreciation.

Year to date Variance:

$0.8M favourable to budget mainly due to project delays and temporary timing differences between planned and actual spend across a number of activities, being mainly in Integrated Community Services and Roads and Access ways.

Full Year Forecast Variance:

$3.4M unfavourable to budget mainly due to:

1. based on current consumption levels, the 2018/19 bulk water levy is forecast to be $0.59M more than planned. This is the subject of a separate report to this Committee;

2. $0.56M of higher landfill operating costs due to higher commercial and domestic household waste than planned (offset by additional landfill fees of $1.5M);

3. increased insurance premiums of $0.49M;

4. $0.36M related to Council run events including Highlight due to additional one-off setup costs related to the scale of the event. Adjustments have been made to other planned events to reduce the impact of the over spend;

5. $0.35M related to increased specialist services costs to assist with the processing of resource consent applications due to vacant staff positions. This will be offset by additional revenue.

25. Hutt City Community Facilities Trust (CFT) Operating Grants

Brief Description

CFT is a Council Controlled Organisation that constructs (and manages) community facilities for and on behalf of Council. Payments made by Council to CFT for CFT capital projects are required to be treated by Council as operating expenditure for accounting purposes. [If these capital works were done directly by Council, they would be treated as capital expenditure and Council would achieve a balanced budget for 2018/19].

Year to date Variance:

$1.98M unfavourable to budget mainly due to additional funding for Fraser Park Sportsville.

Full Year Forecast Variance:

$0.85M favourable to budget due to planned carry-over of $2.5M for Wainuiomata Sportsville. The favourable impact from the delay in the current year is offset by additional Funding for Fraser Park Sportsville including an operating grant payment to the CFT.

In February 2018, Council agreed to advance to the CFT $0.75M for Fraser Park Sportsville, to be repaid to Council over a 15 year period, in return for the transfer from CFT to Council of the building naming rights. This was incorrectly treated as a loan in the 2018/19 Long Term/Annual Plan.

26. Development Stimulus Package

Brief Description	The Development Stimulus Package also referred to as the Development Charges and Rates Remissions Policy, was set up to encourage development in the city. This policy was suspended at 31 December 2018.
Year to date Variance:	$0.45M unfavourable to budget due to the high volume of applications received.
Full Year Forecast Variance:	$3.2M unfavourable to budget due to the high volume of applications received at 31 December 2018. This expected spend is offset by a reduction of $2.9M in the Urban Growth Strategy capital budget (for growth infrastructure) and an increase in revenue for consents and development contributions.

27. Interest Expense

Brief Description	This is the interest cost for borrowing to fund Council’s capital projects not covered by depreciation and any operating deficits.
Year to date Variance:	$0.48M favourable to budget.
Full Year Forecast Variance:	$0.82M favourable to budget mainly due to a lower weighted average cost of borrowing (interest rates), compared to budget.

28. Depreciation

Brief Description	Includes Depreciation for Councils Infrastructural and Operational assets.
Year to date Variance:	$0.48M unfavourable to budget.
Full Year Forecast Variance:	$0.89M unfavourable to budget primarily due to higher than budgeted depreciation for Road and Footpath construction ($0.42M), Event Centre ($0.2M) and Reserves ($0.14M).

29. Gains/Losses on Revaluation of Financial Instruments

Brief Description

1. Council recognises its interest rate swaps at fair value each month.

2. The change in fair value between reporting date and 30 June 2018 is treated either as an unrealised gain (fair value has decreased) or an unrealised loss (fair value has increased).

Year to date Variance:

$3.4M unfavourable to budget because swap rates are lower when compared to 30 June 2018.

Full Year Variance:

Given the volatility of the financial markets, the full year forecast will always be aligned to the year-to-date fair value of Council’s committed swap portfolio.

30. Gains/Losses on Revaluation of Assets

Brief Description	Council revalues its property, plant and equipment every three years with the most recent revaluation completed on 31 December 2017. In addition, Council recognises either gains/losses on sale/disposal of its assets.
Year to date Variance:	$3.4M favourable due to realised gains made on recent asset sales/disposals that were expected to have settled in 2017/18 but slipped into early 2018/19.
Full Year Variance:	$3.4M favourable to budget as per above.

Part B: Statement of Financial Position

31. Council’s financial position as at 31 December 2018 and the full-year forecast against budget are shown below, followed by a summary of key variances.

Overall Summary

32. Council’s financial position as at 31 December 2018 is sound with net assets of $1.3 billion.

33. Debtors and receivables of $84.0M includes $78.4M (including GST) of the combined rates of Council and Greater Wellington Regional Council for the remaining three instalments of 2018/19 (not yet due), plus rates in arrears. However, this is offset by the:

a. “Other liabilities” which includes $62.5M of Council rates revenue in advance; and

b. “Creditors and other payables” which includes $19.0M of Greater Wellington Regional Council share of rates.

34. $24M of existing debt matures later in 2018/19 and $10M matured in the first quarter. This was pre-funded and Other Assets of $14M represents the remaining pre-funding held on term deposit until existing debt matures.

35. Investment in CCOs represents $14.5M of shares in Council’s CCOs, $14.7M in loans to CCOs and $2.8M of Local Government Funding Agency (LGFA) borrower notes.

Net Debt

36. Year to date Net Debt is below budget mainly due to project delays. Forecast debt is expected to be close to budget. The expected forecast overspend in operating costs is offset by forecast underspends in capital. The favourable variance in asset sales will have no effect on the debt as the budget assumed these would have been completed last year.

Part C: Statement of Cash Flows

37. Council’s cash flow for first quarter ended 31 December 2018 and the full year forecast against budget are shown below, followed by a summary of key variances.

Overall Summary

38. Council’s cash on hand as at 31 December 2018 was $15.9M plus a further $14.0M of pre-funding was held on short term deposit.

39. The main activities for the six months to 31 December 2018 included:

a. pre-funding $4M of existing Council debt maturing in 2018/19;

b. repayment of $10M of existing debt using debt pre-funding held on term deposit; and

c. refinancing $5M of Commercial Paper.

Part D: Capital Expenditure Programme and Asset Sales

Capital Expenditure

40. A summary of the 2018/19 capital works programme for the six months to 31 December 2018 is shown below.

41. Total budgeted capital expenditure for the year is $72.6M. At this stage we are forecasting to be underspent at year end by $4.5M mainly due to expected delays in the Cycleways/Shared Paths projects and underspends on the Urban Growth Strategy projects, offset by forecast overspends in a number of key projects as shown below.

42. The following are comments on the above forecast variances. The variances for a number of projects (as noted in brackets) are due to the timing of work between years rather than a variance in the project’s total costs compared to the total budgets.

· Wharves Refurbishment ($0.78M unfavourable, timing related) – the Rona Bay wharf was completed ($0.1M) over budget and the Days Bay wharf refurbishment has been brought forward to this year with a corresponding underspend next year.

· Avalon Park Development ($0.77M unfavourable, timing related) – the over spend this year is offset by an under spend last year when some of the work on the project last year was not able to be completed.

· Making Places Civic Event Centre Upgrade ($0.59M unfavourable, timing related) - project delays last year (mainly suppliers and labour shortage) have resulted in pushing work on the project into this year.

· Making Places Projects ($0.19M unfavourable) – revised costings showing that Geotechnical and Consenting costs for the RiverLink Project will be higher than planned.

· Urban Growth Strategy Improvements ($2.9M favourable) – this is to offset agreed additional operating costs with the Development Stimulus Package.

· Cycleways / Shared Path Projects ($2.56M favourable) – overspend on the Wainuiomata Shared Path and Beltway projects of $0.69M due to complexities of the work on Wainuiomata Hill. Delays in the Eastern Bays Cycleway project requiring $3.2M to be carried over to 2019/20.

43. A number of carryovers to 2019/20 have already been identified at this stage. These are shown below:

· Mahia Atu Partnership Fund - $0.1M

· CFT Sportsville Wainuiomata - $2.5M

· Capital Subsidies - $1.65M

· Dowse Museum Maintenance - $0.1M

· Dowse Entrance Upgrade - $0.12M

· Eastern Bays Cycleway/Shared Path - $3.24M

· Sub Standard Roads Upgrade - $0.63M

44. These along with the full list of proposed carryovers to 2019/20 for inclusion in the Final 2019/20 Annual Plan will be submitted to the Community Plan Committee for approval in June.

Asset Sales

45. The following table is a summary of the net asset sales position:

46. The forecast favourable variance is due to a significant number of sales that were planned for last financial year but have already been completed or are expected to be completed this financial year including Mitchell Park, Avalon Park North, Durham Crescent, Copeland Street and Strategic Properties. Mitchell Park, Avalon Park North and Durham Crescent have been completed and are included in the YTD numbers.

Part E: Treasury Management

Summary for the Year

47. The total amount of new debt issued in the first quarter was $14M, which included $4M of new debt to partially prefund $24M of Council debt maturing in 2018/19. In addition, $10M of new debt was issued in the same period to part fund Council’s 2018/19 capital works programme, initially funded through Council’s commercial paper programme.

48. $10M of term debt matured in the first quarter and was repaid using Council’s pre-funding held on term deposit. $5M of commercial paper was refinanced in quarter 1 to retain the programme at $11M, necessary to offset the additional costs of Council’s credit facility of $35M (increased from $15M earlier this year).

49. The total amount of new debt issued in the second quarter was $10M, to part fund Council’s 2018/19 capital works programme. This was a mix of Fixed and Floating debt issuance via LGFA ($5M each).

50. No debt matured in the second quarter, however, $11M of commercial paper was refinanced in quarter 2 to retain the programme at $11M, necessary to offset the additional costs of Council’s credit facility of $35M (increased from $15M earlier this year). The $11M of commercial paper has since been repaid in January 2019.

51. The Official Cash Rate (OCR) has remained constant at 1.75%. Council’s weighted average cost of borrowings has improved slowly as Council takes advantage of lower interest rates and as legacy loans and swaps with higher interest rates are replaced. The weighted average cost of borrowings as at 31 December 2018 was 3.67% (30 June 2018: 3.90%).

52. All of Council’s Treasury Risk Management Policy limits have been complied with and are shown below:

Item	Borrowing Limit	Calculated	Within Limit	Comments
Net External Debt / Total Revenue	<150%	114%	Yes	Based on annualised revenue
Net Interest on External Debt / Total Revenue	<10%	6%	Yes
Liquidity Ratio	<110%	119.58%	Yes

53. The table below presents Council’s debt maturity profile and compliance with its debt maturity buckets. “Linked assets” represent the loans on-lent to Council’s CCOs and “Available” represents Council’s credit line facility.

54. The table below presents Council’s hedging position and compliance with its floating/fixed hedging limits.

55. As at 31 December 2018, Council had $212M of gross borrowings (including borrowings on behalf of CCOs). Council borrows at least cost which is mainly at floating interest rates. The floating/fixed mix is shown below:

56. To mitigate interest rate risk, Council enters into notional interest rate swap agreements with banks. Council “pays” a fixed interest rate in “return” for a floating interest rate, rolled over quarterly for the term of the swap agreement.

57. Council’s interest rate swaps result in Council’s floating/fixed borrowings ratio now being 29% ($61M) floating and 71% ($151M) fixed. This is shown by way of a diagram below:

Consultation

58. There are no consultation requirements arising from this report.

Legal Considerations

59. There are no legal considerations arising from this report.

Financial Considerations

60. There are no financial considerations in addition to those already noted in this report.

Other Considerations

61. In making this recommendation, officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002. Officers believe that this recommendation falls within the purpose of local government in that it provides Councillors with the necessary information to effectively undertake their governance role.

Appendices

No.	Title	Page
1 ⇩	Activity Statements & Projects Lists	183

Author: Philip Benseman

Acting Chief Financial Officer

Author: Darrin Newth

Financial Accounting Manager

Approved By: Brent Kibblewhite

General Manager Corporate Services

216 06 March 2019

Finance and Performance Committee

15 January 2019

File: (19/71)

Report no: FPC2019/1/35

Seaview Marina Limited Six Month Report to 31 December 2018

Purpose of Report

1. To provide the Committee with an update for Seaview Marina Limited (SML), for the six month period to 31 December 2018.

Recommendations

That the Committee receives the half year report from Seaview Marina Limited attached as Appendix 1 to the report.

Background

2. The Local Government Act requires Council Controlled Trading Organisations (CCTOs) to deliver to shareholders a half yearly report on the organisations operations within two months after the end of the first half of each financial year. The report should include information required to be reported as outlined in the organisation’s 2018/19 Statement of Intent (SOI).

Discussion

3. The Chair and Chief Executive of SML will be in attendance at the Committee meeting to present their report and answer any questions.

4. SML achieved a surplus of $214,120 for the six months to 31 December 2018. This is $34,653 below the year to date (YTD) budget and $47,291 lower than for the same period last year.

5. Revenue YTD is above budget by $42,080, and $43,990 above the same period last year. With the exception of Hardstand and Live aboard revenue, which are tracking below budget by $8k and $4k respectively – all other revenue categories are tracking well above budget.

6. Boat storage revenue has improved significantly since this time last year – being $17,432 (or 2.2%) above budget and $53,608 (or 7.5%) above the same period last year. Monthly Occupancy levels for Marina berths are now close to 90% and improving. Trailer boat storage revenue is 8% higher than the corresponding period last year and 3% higher than budget, with monthly Occupancy levels typically around 100%.

7. Total expenses were above budget by 17.1%. Operational expenses are higher mainly due to a mix of unplanned additional expenses, including:

a. Electricity: incorrect meter readings since a change in electricity supplier requiring payment for the correct actual usage, coupled with a current year budget established on historically incorrect charges;

b. Security: an additional charge relating to last year, which was not accrued, coupled with increased charges arising from additional unbudgeted patrol services;

c. R&D: writing off of design work, for a café concept which predated the existing Compass Coffee café, which should have been expensed before this financial year;

d. Water: additional charges resulting from misuse of water by a licensee for a significant period, equivalent to a full year of charges; and

e. Marketing and Travel: attendance at the NZ Marine Association Conference and the Auckland Boat Show by three staff. This is a timing variance only.

8. The finance charges are in line with YTD budget.

9. The depreciation charges are below budget YTD by $15,086.

10. Overall berth occupancy rates of close to 90% over the six months have been achieved. A pleasing aspect has been the increase in 12m berth occupancy rates. Trailer boat occupancy continued to be close to 100%.

11. The boatyard business has not been as buoyant for this six month period, compared to last year, with income 92% of budget. However demand for the spray booth has exceeded expectations achieving 87% occupancy. Net diesel income has exceeded budget over the six month period by almost $10k.

12. The Wellington Marine Centre is operating $11k (8%) ahead of budget. Only one tenancy is untenanted.

13. Projections for the full year indicate the net surplus will be close to $500,000, which is 16.8% below budget due to the previously noted variances. While the forecast Net Surplus is below budget, a Return on Equity of 5.8% is forecast at year end - above the SOI target of 5%.

14. No notifiable health and safety issues were recorded. A number of improvements to Seaview Marina’s health and safety processes were implemented during the six month period, with the adoption of the People Safe programme and app for monitoring health and safety on the site.

15. Ten new catamaran berths were constructed on the south side of G Pier (1 x 24m, 1 x 26m, 4 x 14m and 4 x 18m catamaran berths). This project was completed in July 2018.

16. The new western pedestrian walkway from the Lowry Bay Yacht Club to E pier was completed during the six month period, as well as the installation of the new marina gate houses on piers A through to E. Upgrades to the security cameras on these gates and new control panels provide for future installation of a fibre network and WiFi.

17. Cash flows have been strong. Available cash at 31 December 2018 was $626,742, of which $575,000 was on call investments.

18. The total equity at 31 December 2018 was $8,721,287.

Options

19. There are no options to be presented.

Consultation

20. There is no requirement for further consultation.

Legal Considerations

21. There are no further legal considerations to be noted.

Financial Considerations

22. There are no additional financial considerations to be noted.

Other Considerations

23. In making this recommendation, officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002. Officers believe that this recommendation falls within the purpose of local government in that it provides Councillors with the necessary information to fulfil their governance role over a Council Controlled Trading Organisation.

Appendices

No.	Title	Page
1 ⇩	Seaview Marina Six Month Report December 2018	217

Author: Sharon Page

Senior Management Accountant

Approved By: Brent Kibblewhite

General Manager Corporate Services

248 06 March 2019

Finance and Performance Committee

18 February 2019

File: (19/219)

Report no: FPC2019/1/31

TechnologyOne SaaS Project Update

To provide the Finance and Performance Committee with an update on the TechnologyOne SaaS Project and Governance Structure.

Recommendation

That the report be noted and received.

Background

1. At the Finance and Performance Committee meeting on 2May 2018 the business case to move Council’s TechnologyOne software to SaaS (Software as a Service) was approved.

2. The Finance and Performance Committee requested a project update at each meeting while the project is in progress.

Governance

3. Governance meetings are scheduled monthly and additional meetings will be added as needed. With the resignation of Chief Financial Officer, Mark De Haast, Brent Kibblewhite, General Manager, Corporate Services is now attending the meetings.

Project Update

Scope:

GREEN

Schedule:

GREEN

Financials:

GREEN

Risks:

GREEN

4. The full project review has been completed which resulted in the schedule being revised to accommodate a structured approach that follows standard software development lifecycle methodologies. The review has not had any impact on the original budget.

5. The project is tracking well against the revised schedule and we are targeting a Go Live date of the weekend of 1 – 3 June (Queens Birthday weekend). We are on track for the next key milestone scheduled in mid-March to start integration testing.

6. We have been working on a test strategy which has been reviewed with our key stakeholders. The test strategy includes the review of current test scripts and development of any new test requirements. The prioritisation of testing is currently in progress and planning to complete the testing is underway.

7. We have also engaged a Solution Architect and Test Analyst to ensure the design and testing of the solution meets requirements.

8. Budget Summary

	Budget	Actuals to Date	Forecast	EAC	Variance
TOTAL	$1,500,000	$658,143	$841 857	$1,500,000	0.0%

9. Risk Summary

Risk	High, Med, Low	Risk Mitigation
Application performance (screen response) is adversely impacted	Med	Performance/Load testing to be done during UAT. Implement performance improvements to bring application performance to acceptable levels.
Information used in the current TechOne to CM9 (Document Management System) integration may not be available through the Cloud Integration method requiring additonal development to make available.	Med	Accept risk. If realised, go live may need to be delayed until a suitable solution can be developed and implemented.
Business representatives required for User Acceptance Testing may not be available in the required timeframe delaying execution of tests and verification of system.	Low	GM and DM level Governance Group established to facilitate prioritisation, verify acceptable go live date based on business as usual activities and ensure availability of cross Council representation to meet dates.

Appendices

There are no appendices for this report.

Author: Rick Newton

Business Transformation Manager

Approved By: Lyndon Allott

Chief Information Officer

MEMORANDUM 252 06 March 2019

Our Reference 19/140

TO: Chair and Members

Finance and Performance Committee

FROM: Bruce Hodgins

DATE: 07 February 2019

SUBJECT: Bulk Water Supply

Recommendation

That the information be received.

Purpose of Memorandum

1. This memorandum provides further information on the increase to Hutt City Council in bulk water costs.

Background

2. The cost of providing bulk water to Wellington, Hutt, Upper Hutt and Porirua cities is apportioned by the Greater Wellington Regional Council according to each of the four cities’ use as a percentage of the total use. The Wellington Regional Water Board Act 1972 is the legislation under which the apportionment of costs to the constituent authorities is established.

3. For the 2017/18 financial year, Hutt City’s use increased relative to the other three Councils, resulting in our share of costs increasing to 26.62%. This equated to an increase in cost of just under $500,000.

4. For the 2018/19 financial year Hutt City’s use is forecast to be 26.82% of total water use, which in dollar terms is a negative variance of $529,000 on what was budgeted.

5. Additionally, revenue for commercial metered water is forecast to be $111,000 under budget, based on the first billing round of 2018/19, though a more accurate picture will be available after the second billing round, which will be completed in February 2019. Officers expect to be in a position to give an update on this at the meeting.

6. Based on this information, bulk water costs for the 2019/20 budget (and future years) have been increased.

Tracking Water Usage

7. The following table records over the past four years the quantity of water used by each of the four cities both in cubic metres (CUM) and as a percentage of the total used.

WCC

Wellington

City Council

HCC

Hutt City Council

PCC

Porirua City Council

UHCC

Upper Hutt City Council

Total

2014/15

26,614,401

53.74%

12,281,564

24.80%

5,828,602

11.77%

4,801,310

9.69%

49,525,877

2015/16

27,871,357

53.79%

13,004,915

25.10%

5,924,538

11.43%

5,015,611

9.68%

51,816,421

2016/17

27,511,994

53.26%

12,972,741

25.11%

6,037,040

11.69%

5,132,239

9.94%

51,654,014

2017/18

27,987,638

51.77%

14,391,849

26.62%

6,381,160

11.80%

5,303,599

9.81%

54,064,246

8. Over the four year period the main changes are with WCC decreasing its share of water usage and HCC increasing its share by a similar amount. The other two Councils have remained reasonably constant. The following graph depicts the changes in water use for Hutt City over the four year period.

9. Over the same period of time the number of water connections for each of the four cities has remained reasonably proportionate, suggesting that the change in use, is not related to a differentiation in growth across the region.

10. The main increase in Hutt City’s water usage occurred within the 2017/18 financial year with a 10.9% increase over the previous year, which translated into our share of the total cost of water increasing by 1.51%.

11. The following graph shows that the main increase in use was over the six month period April to September 2018, which corresponded with the percentage share of water consumed increasing.

12. The increase in overall usage, which has occurred over a relatively short period of time, could be attributed to an increase in actual user consumption, an increase in leaks, or a combination of both. Metered water use for commercial users increased by 9% between 2016/17 and 2017/18, but this only makes up around 11% of the increase in total use between the two years, which means that 89% of the increase occurred through the unmetered reticulation system. The number of public water leaks recorded was not indicative of a sudden increase in loss of water through leaks in the reticulation network. For the six month period when the sudden increase in water usage occurred, the number of reported leaks averaged 186 while the monthly average for the 2017/28 financial year was 227.

Managing Water Leaks

13. Following the Kaikoura Earthquake in November 2016, Wellington Water ramped up its leak detection programme. It found no significant leaks on the bulk water network, but a number of reticulation leaks on the HCC network. Wellington Water advises that without household level water meters it is difficult to detect leakages on private property.

Water Conservation

14. Wellington Water is currently running two regional campaigns focussing on water conservation. These are on Garden Watering Restrictions and Summer Demand.

15. Wellington Water resources for managing water leaks and for water conservation works are generally spread fairly across the four Councils, such that each Council receives a level of service commensurate with its area and extent of its reticulation network.

Appendices

There are no appendices for this report.

Author: Bruce Hodgins

Strategic Advisor, City and Community Services

Approved By: Matt Reid

General Manager City and Community Services

257 06 March 2019

Finance and Performance Committee

24 January 2019

File: (19/85)

Report no: FPC2019/1/32

Health & Safety Officer Due Diligence Report July 2018 to December 2018

Purpose

1. To provide the Committee with health and safety information to assist them in fulfilling their due diligence duties as described under the Health and Safety at Work Act 2015 (HSaW Act).

“thinksafe-worksafe-homesafe”

Recommendation

That the report be noted and received.

Elected Members Due Diligence Duties

2. Council is described as a Person Conducting a Business or Undertaking (PCBU) under the HSaW Act 2015. The duty of a PCBU under the Act is to ensure so far as reasonably practicable the safety of its workers and ‘others’ whilst work is being carried out. The Mayor and Councillors are referred to as Officers under HSaW Act and are required to help the PCBU comply with this duty and they do this by performing due diligence. Due diligence includes taking reasonable steps:

a) to ensure that Council has and implements, processes for complying with any duty under the HSaW Act 2015;

b) to gain an understanding of the nature of the Council’s operations and generally of the hazards and risks associated with our operations;

c) to ensure the business has appropriate resources and processes to eliminate or minimise risk to health and safety;

d) to ensure the business has processes for receiving, considering and responding in a timely way information about incidents, hazards, and risk;

e) to acquire, and keep up-to-date knowledge of workplace health and safety matters; and

f) to verify the provision and use of any resources and processes.

Health & Safety Statistics - 1 January 2018 to 31 December 2018

	Jan- Mar’18	Apr-Jun’18	Jul-Sep’18	Oct-Dec’18	Last 12 months
Total Accidents	29	20	25	25	99
LTI (Medical)	0	0	1	1	2
Non LTI (Medical)	4	3	4	3	14
Non LTI (First Aid)	20	10	11	12	53
Non LTI (Non-Medical)	5	7	9	9	30
Near Miss	34	8	19	22	83
Staff Pain & Discomfort	4	2	2	5	13
Notifiable Injuries / Incidents	0	0	0	0	0

3. Comments on Statistics for Quarter ending 31 December 2018

(a) Accidents: No notifiable events have occurred, however we have had one injury that required stitches and 7 days off work by the Animal Services Officer. A dog bolted and the chain slipped cutting his hand. It was raining which is why the chain slipped.

(b) Near Misses: 22 near miss incidents were recorded in this period of which nine were related to public aggression. The remaining incidents were varied and included people getting out of their depth in pools, slips and trips and speeding wheelchairs.

(c) Staff Pain and Discomfort: There were five reports of pain and discomfort. Four related to a change to LED lighting at War Memorial Library. This has been investigated and a proposal for a solution has been put to management. The remaining new report related to the strong smell of jumble sale clothing being sold in the Wainuiomata Hub. The hazard was eliminated by ventilating the library well.

(d) Lost Time Injuries (LTI): The definition of a LTI is a staff member that has been signed off sick by a medical professional due to receiving a workplace injury. In the last quarter of 2018 we had one LTI with a loss of seven working days as noted in the accident comments at paragraph 3 of this report.

(e) This quarter saw an increase in Near miss incidents however, a decrease in reports of violence and aggression as a hazard. Other increases were in Pain and Discomfort and injuries. Twelve of the injuries were by customers throughout the business. None were serious.

Health & Safety Compliance

External Compliance

4. Urban Plus Limited is working with Fibresafe to act upon the initial survey reports. All reports are available in the HCC Fibresafe Portal and this information can be made available to Contractors that may need to do work on the sites.

Internal Compliance

5. Internal compliance includes review of policies, procedures and completion of audits such as reviews of reported incidents and hazards and the effectiveness of controls. The Health and Safety team have completed one external and four internal audits on our worksites. All health and safety processes, policies, guidelines and forms have been reviewed within the past 12 months.

Hazard Management

6. The reduction of risk and safety of our staff from public aggression or violence remains our top priority going forward into 2019. Training for Managers and Team Leaders in Community Hubs and libraries was undertaken in December 2018. Jack Milford and his team from Opsec went over situational awareness/de-escalation training. It was stressed that teams should be reviewing and practising with their teams on a regular basis.

7. All hazard registers across Council facilities are regularly reviewed and updated in consultation with staff and managers from each site. New Health and Safety representatives are being trained in hazard recognition and reporting to be able to assist in updating Assura hazard registers for their areas.

8. Psychosocial hazards have been identified as an increasing risk in all organisations. HCC is investing in training for leaders to assist in managing this hazard once a suitable training provider has been established.

Employee Participation

Health and Safety Representatives and Employee Participation

9. The new Health and Safety committee commenced its bi-monthly meetings on 11 February 2018. Along with the new Representatives, the General Manager Corporate Services and Divisional Manager Libraries will join the Committee to represent Senior Leadership of Council.

10. Andre Kok will join HCC on 1 April 2019 as Health, Safety & Wellbeing Manager, replacing Dave Tyson who resigned in late 2018. Andre is currently National Health & Safety Manager with Westland Milk Products.

Health and Safety Training and Wellness Initiatives

11. Listed below are the wellness initiatives and health and safety training programmes engaged by staff this period.

Wellness Initiatives

Stop Drop and Breath Workshop in December

Mental Health Awareness Week – October 2018

Stretch Class

Weekly Meditation & Pilates Classes

Massages (staff pay $5 for 10 Minutes)

H&S Training Completed this Reporting Period	Attendees
Opsafe Aggression and Violence De-escalation Training	71
St John First Aid	15
Workplace Induction / Safety Passport (Online)	83
Health and Safety Essentials Training	43
Workstation Ergonomics (Online)	27
Manual Handling (Online)	31
Dog Awareness Training	14
Health & Safety Representative Training	8
Office Health Essentials (hygiene)	33
Site Safe Construction Foundation Course	11

Contractor Management Incidents

12. Notable incidents this period (October to December 2018) include:

· a twisted knee due to a grinder kicking back on the curb in December 2018.; and

· other minor incidents that included a sharps injury and a slip resulting in hip pain that required physiotherapy.

Event Management

13. As per the previous report which included October, one ankle injury from a customer during the Highlight Festival.

Notable Incident / Events to date in 2019

14. Maintenance being carried out on the Little Theatre caused fumes to accumulate in the War Memorial Library which led to it being closed for two half days as a number of staff experienced headaches, nausea and dizziness. Once the cause was established a working group came together to establish better controls to be implemented prior to further work commencing. The effectiveness of the controls was monitored each day for the work that had to be done up to Saturday 2 February and there were no further issues.

Appendices

There are no appendices for this report.

Author: Tracy Heron

Health and Safety Wellbeing Advisor

Approved By: Brent Kibblewhite

General Manager Corporate Services

Attachment 1

Finance and Performance Work Programme

Finance & Performance Committee Work Programme 2019

Cycle 1 6 March 2019	Officer	For Council
Draft SOIs for CCOs – CFT, SML, UPL	B Cato/B Kibblewhite	·
Wellington Water Limited’s Shareholders Agreement and Constitution	T Stallinger	·
Six Monthly Reports for CCOs – CFT, SML, UPL	CCO GM/CEs & B Kibblewhite
Financial Report for the Period Ended 31 December 2018	P Benseman/D Newth
Progress Update on the Re-design of Council’s Combined Rates Invoice	H Stringer
2019/20 Revenue Increase and Cost Reduction Target Update	P Benseman/A Yip
Health & Safety Officer Due Diligence Report	T Heron
Technology One SaaS Project Update	R Newton
Bulk Water Supply	B Hodgins
Finance & Performance Work Programme	Committee Advisor

Cycle 3 29 May 2019	Officer	For Council
Carbon Targets for CCOs	J Scherzer
Tax Risk Management Update	D Newth
Financial Report for the Period Ended 31 March 2019	P Benseman/D Newth
Six Monthly Strategic Property Update	G Craig
Draft SOI for LGFA	P Benseman
Six Monthly Report for LGFA	P Benseman
2019/20 Revenue Increase and Cost Reduction Target Update	P Benseman/A Yip
Technology One SaaS Project Update	R Newton
Finance & Performance Work Programme	Committee Advisor
17 July 2019	Officer	For Council
Risk and Assurance Update and Operational Risk Register	E Davids
Internal Audit Plan 2019 - 2022	E Davids
Fraser Park Sportsville Update	M Reid
Technology One SaaS Project Update	R Newton
Finance & Performance Work Programme	Committee Advisor

Cycle 4 4 September 2019	Officer	For Council
Standard and Poor’s Credit Rating Review	CFO
2018/19 Financial Performance and Position	P Benseman/D Newth
Sale & Supply of Alcohol (Fees) Regulations 2013 – Regulation 19 (1) – Reporting by Territorial Authorities	D Bentley
Audit NZ Final Management Report	D Newth
Annual Reports for CCOs – CFT, SML, UPL	B Kibblewhite
Annual Report for LGFA	CFO
Health & Safety Officer Due Diligence Report	Health & Safety Manager
Technology One SaaS Update	R Newton
Finance & Performance Work Programme	Committee Advisor
26 September 2019	Officer	For Council
Hutt City Council’s Annual Report	Corporate Planner/CFO	·

2018

Cycle 5 28 November 2018	Officer	For Council
CFT Board Appointment of Director	M Reid	·
2019-20 Annual Plan	J Askin/P Benseman/M de Haast	·
Formation of Innovative Young Minds Charitable Trust	L Sessions	·
Audit NZ Final Management Report for the Year Ended 30 June 2018	D Newth
Risk and Assurance Update and Strategic Risk Register 2018	E Davids
Strategic Property Portfolio – Six Monthly Update	G Craig
Financial Report for the Period Ended 30 September 2018	P Benseman/D Newth
Insurance Update	M de Haast
Redesign of GWRC Combined Rates Invoice	M de Haast
2019/20 Revenue Increase and Cost Reduction Targets Update	M de Haast/A Yip
Update on Asset Management Plans	M Reid
Technology One SaaS Project Update	R Newton
Health & Safety Officer Due Diligence Report	D Tyson
Activity Reviews for City Leadership, City Governance and Corporate Services Group Update	B Kibblewhite
Finance & Performance Work Programme	Committee Advisor

Deputy Mayor D Bassett	Cr G Barratt
Cr C Barry	Cr J Briggs
Cr MJ Cousins	Cr S Edwards
Cr M Lulich
Mayor WR Wallace (ex-officio)

Determine and monitor:

Consider and make recommendations to Council:

General: