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91

Tauran^ci Oty

To:

From:

Meeting Date:

Report No: DC 88

Monitoring Committee

Group Manager: Business Services

22 March 2010

Title of Report: MINI MONITORING REPORT FOR EIGHT MONTHS TO 28 FEBRUARY 2010

Purpose of Report: Monitoring

Significance of Decision: Not Significant

Report Writer(s): Paul Davidson, Financial Controller

Summary

To present the financial and performance overview of Council for the eight months ended 28 February 2010.

TCC Ref: 2994437

92 Recommendation

That it be Resolved

(a) That the Group Manager: Business Services' Report (DC 88) be received.

1. Background

The mini monitoring report to the end of February 2010 is provided for Council's information and review.

2. Mini-Monltoring Report

Revenue

Total operating revenue including rates is $87.8m against a year to date budget of $89m with the main cause of the variance due to lower than budgeted user fees. Water by meter revenue remains behind budget reflecting a decline in consumption against budget assumptions. Parking revenue is also behind budget due to lower occupancies in the City Centre.

Asset Development revenue is now ahead of budget with Development Contributions exceeding budget by $1.2m or 15%. This exceeds the same time last year by $1.9m. New Zealand Transport Agency revenue is still behind budget however the variance has reduced since the previous report due to the implementation of the Transportation capital programme.

Operating Expenditure

Operating expenditure is $87.2m, which is consistent with budget despite some unders and overs in various categories. The main areas of underspend year to date are debt servicing (timing of capital programme), repairs and maintenance (timing), and employee related costs (vacant positions). Depreciation exceeds budget due to the impacts of the 2009 asset revaluation. A full review of depreciation has been undertaken as part of planning for the 2010/11 Annual Plan with the level of funding adjusted accordingly.

Net Cost of Service

The net cost of service across all activity areas is $664k behind budget at $18.4m. The cost to fund operational activities is $52.2m which is $1.1 m less than budget. The top three activities favourable to budget are Transportation, Environmental Monitoring and Environmental Policy. The top three activities with net cost of service unfavourable to budget are Strategic Property (timing of asset sales impacting on debt servicing), Wastewater and Indoor Space (depreciation).

Capital Expenditure

Capital expenditure including land purchases and vested assets is $50.Im, which is 36% spent against the full-year budget of $138m. Excluding vested assets the level of capital expenditure is $42.5m spent against a full year budget of $126.5m. Whilst the level of capital expenditure is expected to

2 TCC Ref: 2994437

93 increase throughout the remainder of the year it is expected to be below budget due to a combination of savings on tendered rates and expenditure which has been delayed on certain projects.

The main areas of capital expenditure to date are:

• Three waters • Transportation • Open Space • Indoor Space

$54.Im total budget, $20.2m spent (37%) $24.4m total budget, $9.1m spent (37%) $10.6m total budget, $2.5m spent (24%) $11.7m total budget, $1.6m spent (14%)

3.

3.1

Decision-Making Considerations

Signif icance of Issues and Matters

The Local Government Act 2002 requires a formal assessment of the significance of matters and decisions in this report against Council's Significance Policy. In making this formal assessment the Monitoring Committee is not seeking to assess the importance placed on this issue by specific individuals, groups, or agencies within the community. The Monitoring Committee acknowledges that all reports have a high degree of importance to individuals, groups, or agencies affected by the report.

The matters in this report have been assessed against the Significance Policy. In accordance with the general approach, criteria and thresholds of the policy, the author of this report considers that the stated particular matter(s) are not significant.

This conclusion is based on the following factors:

Issue or Matter

Summary financial information for eight months to February 2010.

Significant / Not Significant

Not significant.

Reason

The report is for information only and Council is not required to make decisions on this information.

Malcolm Gibb Group Manager: Business Services

9 March 2010

Attachment: Financials to February 2010

TCC Ref: 2994437

94 Attachment A

STATEMENT OF FINANCIAL PERFORMANCE

For The 8 Months Ended 28 February 2010

OPERATING REVENUE Rates Revenue User Fees Interest Revenue Other Revenue'

Total Operating Revenue

OPERATING EXPENDITURE Depreciation Loss on Asset Sales Debt Servicing Ottier Expenditure

Administration Expenses Consultants^ Legal Fees Elected Members Remuneration Employee Related Costs Other Expenditure' Repairs & Maintenance

Total Operating Expenditure

2009/10

YTD Actuals

$000

53,764 28,734

554 4.744

87,796

20,187 729

11,991

4,674 1,269

327 570

17,978 20,148 9,285

87,168

2009 /IO

YTD Budget

$000

54,195 30,119

330 4,343

88,987

17,528 0

13,101

3,836 1,250

244 581

19,365 20,656 10,605 87,166

2009 /IO YTD

Variance $000

(431) (1,385)

224 401

(1,191)

(2,659) (729) 1,110

(838) (19) (83)

11 1,387

508 1,320

8

2009/10 % YTD

Variance

%

- 1 % -5% 68% 9%

- 1 %

-15%

~ 8%

-22% -2%

-34% 2% 7% 2%

12% 0%

2009 /10 Total

Budget $000

81,292 44,674

495 6,869

133,330

27,101 0

19,651

5,496 1,929

373 872

29,054 30,434 16,296

131,206

2009/10 % Budget

Spent*

%

66% 64%

112% 69% 66%

74%

~ 61%

85% 66% 88% 65% 62% 66% 57% 66%

2008 /09 YTD

Actuals $000

78,664 27,871

1,151 4,321

112,007

17,815 159

11,197

3,292 1,026

335 567

17,732 19,323 9,490

80,936

NET OPERATING SURPLUS / (DEFICIT) before ASSET DEVELOPMENT REVENUE

638 1,821 (1,183) 2,124 31,071

ASSET DEVELOPMENT REVENUE Development Contributions Vested Assets NZ Transport Authority Subsidies Investment Property Revaluation movements Capital Profit on asset sales

Total Asset Development Revenue

NET SURPLUS / (DEFICIT)

8,811 7,327 1,553

0 58

17,749

18,387

7,644 7,327 2,312

0 0

17,283

19,104

1,167 0

(759) 0

58 466

(717)

15% 0%

-33%

~ -

3%

-4%

11,492 10,991 6,088

0 0

28,571

30,695

77% 67% 26%

~ ~

62%

60%

6,905 16,866 2.775

0 0

26,546

57,617

' this percentage shOLtId be compared to the % through current frnancral year 67%

NOTES: ' Other Revenue Includes Petrol Tax, Donations, Sponsorships, Dividends, External Interest and Subsidies (other than NZ Transport Agency Capital Subsidies).

' Consultants Excludes Legal Fees

Other Expenditure Includes Bank Charges, Debt Collection, Operational Contracts (eg Facilities Mgt, Wwtr Station costs). Audit Fees, Community Grants/Contracts,

95

STATEMENT OF COST OF SERVICES

For The 8 Months Ended 28 February 2010

ACTIVITY AREAS: Airport Animal Services

Aquatics Arts & Heritage Baypark

Building Services WaterfronVCBD Asset Development

Civil Defence Emergency Mangt Com munity Property Services Customer Service Centre

Democracy Economic Development Elder Housing Environmental Monitoring

Environmental Planning Environmental Policy Indoor Space & Active Living

Libraries Open Space - Parks & Coastal

Solid Waste Management Stormwater (Drainage Services) Strategic Property Support Services Transportation Events Tauranga

Wastewater (Drainage Services) Water Supply

Key Activity Area Net Cost Of Service

Head Office & Treasury

Non Significant Activities Vested Assets Subsidies received for Capital Expenditure

Development Contributions Capital Profit On Asset Sales Loss on Disposal of Assets Non-Funded Depreciation

Less Internal Eliminations

TOTAL NET COST OF SERVICE

2009/10

YTD Actuals-Revenues

2,745 628

(4) 0 0

2,377

0 0 0

2,003 829

87 80

807 692

649 18 21

565 196 417

4 4,361 9,220

6,310 896 661

9,538

43,100

70,322 2,178 7,327 1,553 8,811

58

0 0

(27,804)

105,545

2009/10

YTD Actuals-Expenditures

1,692 379

674 1,124

0 2,503

127 0

217 1,487

1,168

1,486 1,628

895 1,158

1,167 1,710 2,492

4,417 3,311 1,544 6,533 4,652

11,220

16,255 1,873

10,544

10,032

95,288

14,009 2,748

0 0 0 0

729 2,188

(27,804)

87,158

2009/10

YTDActuals-Net Cost Of

Service

1,053 249

(678) (1,124)

0

(126) (127)

0

(217) 516

(339) (1,399)

(1,548) (88)

(466)

(518) (1,692)

(2,471)

(3,852) (8,115)

(1,127) (6,529)

(291) (2,000) (9,945)

(977)

(9,883)

(494)

(52,188)

56,313 (570) 7,327

1,553 8,811

58 (729)

(2,188)

0

18,387

2009/10

YTD Budget -Net Cost Of

Service

908 169

(655) (1,178)

0

(66) (209)

0

(205) 414

0

(1,614)

(1,552) 6

(702)

(378) (1,914)

(2,235) (3,991) (8,172) (1,238)

(6,482) 363

(3,046)

(10,424)

(1,149) (9,526)

(450)

(53,326)

57,857 (474) 7,327 2,312 7,644

0 0

(2,278)

(11)

19,051

2009/10

Total Budget-Net Cost Of

Service

1,363

11

(1,291) (1,647)

0

(98) (313)

0 (307)

607

0

(2,420) (1,806)

9 (1,177)

(569) (2,870) (3,185)

(5,986) (12,719)

(1,859) (9,723)

491 (4,341)

(15,888) (1,595)

(14,291)

(1,000)

(80,604)

86,829 (710)

10,991

6,201 11,492

0 0

(3,504)

0

30,695

2008 /09

Total Actuals - Net

Cost Of Service

1,145 303

(741) (1,077)

0

(184) (101)

0 (338)

642 60

(1,569) (1,323)

143 (1,110)

(690) (1,321) (1,870)

(4,478) (8,287) (1,370)

(4,416) (248)

(2,493) (10,644)

(966) (8,204)

51

(49,086)

83,713 (664)

16,866 2,775 6,905

0 0

(2,892) 0

57,617

' this percentage should be compared to the % through current financial year = 67%

NOTES: * Net Cost Of Service: Activity Area Revenue excludes Internal Interest, Vested Assets, Asset Development & Developer Contributions. ActivitiyArea Expenditure excludes Loss On Disposal of assets. Activity Area Expenditure & Revenue figures

' Suppor t Services Inc lude: Business Solutions, City Development, Communications, Finance, Human Resources, Business Information, Property Consultancy S Strategic Planning S Relationships

2 Head Office and Treasury inc lude: Corporate Treasury (Rates Revenue and Intemal Loans), Development Contributions and Reserves, and Strategic Land Purchases

^Non Sign i f icant Activit ies inc lude: City Services Administration, Plant Operating, Water & Wasterwater Utiities & Executive Team Administration

TCC Ref: 2994437

96

97

STATEMENT OF NEW CAPITAL EXPENDITURE

For The 8 Months Ended 28 February 2010

ACTIVITY AREAS:

Airport

Animal Services

Tauranga City Aquatics Limited

Arts & Heritage

Bayparl<

Building Services

WaterfronVCBD

Asset Development

Civil Defence Emergency IVIangt

Community Property Services

Customer Service Centre

Democracy

Economic Development

Elder Housing

Environmental Monitoring

Environmental Planning

Environmental Policy

Indoor Space & Active Living

Libraries

Open Space - Parks & Coastal

Solid Waste Management

stormwater (Drainage Services)

strategic Property

Support Services

Transportation

Events Tauranga

Wastewater (Drainage Services)

Water Supply

Key Activity Area Capi ta l Expend i tu re

Head Office & Treasury

Non Significant Activities

Vested Assets

2009/10

YTD Actuals

760 3 0

14 0 0

62 0 0

799

362

(1) 0

127

22

0

14

1,638

1,183

2,534

50

3,526

3,879

1,068

9,092 700

9,593

7,031

42,456

2009/10

YTD Budget

760 0

1,684 0 0 1

53

0

0

972

532 17

0

227

21 3 0

1,167

1,386

5,269

50

4,978 4,133 1,330

11,591 918

12,373

8,699

56,164

2009/10 YTD

Variance

0

(3) 1,684

(14) 0 1

(9)

0

0

173

170 18 0

100

(1) 3

(14)

(471)

203

2,735

0

1,452

254

262 2,499

218

2,780

1,668

13,708

2009/10 %YTD

Variance

0%

100%

100%

-17%

18%

32%

106%

44%

-5%

100%

-40% 15% 52%

0% 29%

6%

20%

22%

24%

22%

19%

2009/10 Total

Budget

1,140

0

2,526

0

0

1

1,037

0

0

3,313

797

26

0

340

36

4

45

11,697

2,289

10,608

50

13,566

10,575 2,075

24,381 1,458

22,572

17,988

2009/10 2008/09 % Budget YTD

Spent* Actuals

24% 126,524

0 307

7,327

0 0

207 (100)

7,327 0 -48%

0%

0

310

10,991

67%

0%

0%

6%

24%

45%

-4%

37%

6 1 %

0%

3 1 %

14%

52%

24%

100%

26%

37%

5 1 %

37%

48%

42%

39%

34%

99%

67%

745 0

36 0 0 1

633 0 0

939 11

2

0

183

53

4

264

1,541

1,447

3,066

56

10,983

4,057

1,472

13,660 488

8,788

5,005

53,434

0

48 16,866

TOTAL NEW CAPITAL EXPENDITURE 50,090 63,698 13,608 21% 137,825 36% 70,348

' th is percentage should be coni pared lo the % through current financial year 67%

NOTES: * Capi ta l Expend i tu re :

NB: Key Activity Area capital expenditure includes all significant projects and land purchases but excludes Vested Assets.

1 Suppor t Serv ices i nc lude :

Business Solutions, Qty Development, Communications, Finance, Human Resources, Business Information, Property Consultancy

& Strategic Planning & Relationships

^ Head Off ice and Treasury i nc lude :

Corporate Treasury (Rates Revenue and Intemal Loans), Development Contributions and Reserves

^Non S ign i f i can t Act iv i t ies i nc lude :

City Services Administration, Plant Operating, Water & Wasterwater Utiities & Executive Team Administration

TCC Ref: 2994437

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99

STATEMENT OF FINANCIAL POSITION

As At 28 February 2010

ASSETS - CURRENT Cash and Cash Equivalents Debtors ancJ Other Receivables Inventories Non-Current Assets Intendecj for Sale Derivative Financial Instruments

Total Current Assets

ASSETS - NON-CURRENT Derivative Financial Instruments Financial Assets Other investments Fixed Assets

Total Non-Current Assets

2009/10 YTD Actuals

$000

34,029 19,993

383 0

375

54,780

2,429 8,294

31,319 2,734,586

2,776,628

2008 /09 YTD Actuals

$000

43,422 20,081

124 0

168

63,795

3,613

0 37,755

2,715,779

2,757,147

TOTAL ASSETS 2,831,408 2,820,942

LIABILITIES-CURRENT Creditors and Other Payables Derivative Financial Instruments - Current Portion Employee Benefit Liabilities Deposits Held income In Advance Borrowings - Current Portion

Total Current Liabilities

LIABILITIES - NON-CURRENT Borrowings Derivative Financial Instruments Provisions

Total Non-Current Liabilities

TOTAL LIABILITIES

NET ASSETS

EQUITY Retained Earnings Restricted Reserves Council-created Reserves Property, Plant and Equipment Reserves

43,932 1,052

2,831

4,056

8,475 29,859

90,205

258,930

10,760 14,000

283,690

373,895

2,457,513

671,790 7,014

44,947 1,733,762

2,457,513

13,307 0

3,056

4,119

0

21,750

42,232

252,163

0 14,000

266,163

308,395

2,512,547

715,580

12,995

42,061 1,741,911

2,512,547