Key Financial Issues for the Four Months Ended 31 October …25p4fe6mo17q9stw0v5w/hierarchy...Council 14 December 2017 Key Financial Issues for the Four Months Ended 31 October 2017

156Council

14 December 2017

Key Financial Issues for the Four Months Ended 31 October 2017

1. Executive Summary

This report provides a high-level summary of the draft financial statements for the four months ended 31 October 2017 and brief explanations of significant variances from the year-to-date budget, highlighting any known issues.

2. Total income

2.1 Total income for the four months ended 31 October 2017 was $33.95m. This was $1.46m higher than the year-to-date budget of $32.49m.

2.2 The major variances were:

o Financial contributions of $4.05m are $706k ahead of year-to-date budget of $3.34m

o Other income of $1.54m being $959k ahead of the year-to-date budget of $581k. This relates to a contribution of $1m from the NZ Community Trust for the Tauranga to Omokoroa cycleway

o Rate income of $12.23m being $330k ahead of the year-to-date budget of $11.90m

o Service charge income of $8.25m being $78k lower than year-to-date budget of $8.33m

o Subsidies and grants income of $3.73m, being $538k lower than the year-todate budget of $4.27m. This is predominantly due to the timing of NZTA funding for capital works projects

o User fees income of $3.35m is $115k lower than the year-to-date budget of $3.46m. This is primarily due to the timing of subdivision fee income.

The table overleaf provides a breakdown of the financial contributions received:

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Budget 2018

Water Supply - Western 135,048 Water Supply - Central 177,272 Water Supply - Eastern 134,116 Wastewater - Waihi Beach 164,124 Wastewater - Katikati 132,424 Wastewater - Omokoroa 755,932 Wastewater - Te Puke 92,488 Wastewater - Maketu/Little Waihi 2,192 Stormwater 418,332 Roading - Rural 215,028 Roading - Waihi Beach structure plan 6,628 Roading - Katikati structure plan 49,060 Roading - Omokoroa structure plan 336,804 Roading - Te Puke structure plan 59,876 Roading - Strategic 71,276 District - Reserves & Facilities 527,796 Ecological 61,564 Total 3/339,960

3. Expenditure

Actual 2018

71,687 329,938 259,133 68,287 30,820

717,587 28,488

0 264,302 586,877

3,481 16,469

573,437 17,167

118,418 874,716

85 006 4,045,814

Council 14 December 2017

OJo $Variance Variance to Budget to Budget

(63,361) (47)% 152,666 86% 125,017 93%

(95,837) (58)% (101,604) (77)%

(38,345) (5)% (64,000) (69)%

(2,192) (154,030) (37)%

371,849 173% (3,147) (47)%

(32,591) (66)% 236,633 70% (42,709) (71)%

47,142 66% 346,920 66%

23 442 38% 705,854 21 %

3.1 Total expenditure of $26.47m was $554k lower than the year-to-date budget of $27.02m.

3.2 The major variances were;

o Additional Level of Service projects of $737k were $393k lower than year-todate budget of $1.13m. Movements by activity are included as per (Attachment A)

o Operating costs of $10.24m being $334k higher than the year-to-date budget of $9.91m. This is due to year-to-date overspends on operating costs including bad debt, rating discounts, sewerage treatment and maintenance. These are offset in part by year-to-date underspends on rates and professional service fees

o Interest expense of $2.92m being $281k ahead of the year-to-date budget of $2.64m

o Depreciation of $6.49m is in line with the year-to-date budget of $6.72m.

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4. Capital Expenditure

4.1 Total capital expenditure of $9.83m was $3.43m lower than year-to-date budget of $13.26m. Movements by activity are included as per (Attachment B).

4.2 The major variances were;

o Transportation expenditure of $3.42m being $1.81m lower than the year- todate budget of $5.23m. This is due to underspends on Omokoroa Structure Plan projects ($732k) and the One Network Maintenance Contract ($1.90m). This is offset in part by year-to-date overspends on road safety ($429k) and cycling/walking ($420k) projects

o Water Supply expenditure of $1.54m being $275k lower than the year-to-date budget of $1.82m. This is predominantly due to timing differences of the work program compared to budget including underspends on the Western water metering project, additional Central bores and Eastern water treatment plan upgrades. Offset in part by year-to-date overspends on reticulation improvements

o Communities' expenditure of $364k, being $1.38m lower than year-to-date budget of $1.74m. This is predominantly due to the timing difference of the Katikati Library build project ($1.22m) and the Te Puke Memorial Hall strengthening project ($160k)

Wastewater expenditure of $2.20m being $68k higher than the year-to-date budget of $2.13m. This is due to timing of various projects including overspends on Te Puna West wastewater system (773k), Omokoroa wastewater ($300k) and Maketu wastewater ($64k). This is offset in part by year-to-date underspends on Waihi Beach wastewater projects ($110), Katikati wastewater projects ($214k), Te Puke wastewater projects ($196k) and Ongare wastewater ($550k).

5. Treasury

5.1 At 31 October 2017 total external debt was $150.00m. This is in line with the balance as at 30 June 2017.

5.2 Net debt position, being total debt ($150.00m) less cash on hand and short term deposits of $65.18m, was $84.82m. This represents a $15.40m decrease in net debt from the June 2017 balance of $100.22m. Traditionally July, August and September have net cash decreases that are reversed when rates are received in October.

5.3 Council 's weighted cost of finance at 31 October 2017 was 4.84%. This is consistent with previous months.

5.4 The valuation of Council 's interest rate swaps at 31 October 2017 was a net liabil ity of $9.88m. This represents a $220k increase over 30 June 2017 liability of $9 .66m. It is important to note that this liability is a non cash liability and will not be realised .

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14 December 2017

5.5 At 31 October 2017 Council held interest rate swaps totalling $162.5m . Of these $58m were forward start interest rate swaps. Council had 84% of total debt covered by interest rate swaps, which is within the policy range of 50%-95% coverage.

6. Internal Loans and current account balances

6.1 Internal loan balances at 31 October 2017 totalled $96.65m. This is $839k lower than the 1 July 2017 balance of $97.49m.

6.2 Current account balances totalled $31.07m as at 31 October 2017. This is $80k higher than the 1 July 2017 balance of $30.99m.

Western Bay of Plenty District Council Draft Statement of Financial Performance For the 4 months ended 31 October 2017

Year to Date

Variance Last Year Full Year Actual Budget Fav I (Unf) Actual Revised $ '000 $'000 $'000 $'000 Budget

$ '000

Costs Additional Levels of Servk:e 737 1,130 393 693 3,396 Operating Costs 10,239 9,905 (334) 10,089 31,660 Personnel 6,081 6,621 540 5,534 19,340 I nterest Exp - External 2,923 2,641 (281) 2,778 7,800 Depreciation 6 487 6 723 237 6 627 20 170 Total Costs 26,466 27,020 554 25,721 82,366

Income Financial Contributions 4,046 3,340 706 3,271 10,020 Interest Income - External 527 427 100 137 1,280 Other Income 1,540 581 959 963 2,214 Rate Income 12,234 11,904 330 12,080 35,713 Servk:e Charges 8,254 8,332 (78) 8,119 25,004 Subsidies and Grants 3,735 4,273 (538) 1,990 12,818 Sundry Income 265 167 99 249 500 User Fees 3,347 3,462 (115) 3,462 9,392 Vested Assets 0 0 0 0 2 240 Total Revenue 33,949 32,486 1,463 30,270 99,182

Share of Associate surplus/(defk:it) 0 0 0 0 0 Surplus (Deficit) 7£483 5£466 2£017 4£549 16£817

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Western Bay of Plenty District Council

Statement of Financial Position

As at 31 October 2017

Actual Forecast Draft

31 October 2017 June 2017 June 2017

$'000 $'000 $'000

EQUITY

Accumulated Funds 791,828 786,914 784,185

Restricted Reserves 266 261 266

Counci-created Reserves 29,396 21,650 29,556

Asset Revak.Jatbn Reserves 355,394 372,284 341,466

Total Equity 1,176,884 1,181,109 1,155,473

Assets

Current Assets

Cash and Bank 2,240 6,218 4,863

Short Term De posts 62,939 44,916

Receivables and Prepayments 5,825 9,423 8,558

Property and Investments for Resale 192 875

Total Current Assets 71,004 15,833 59,212

Non-current Assets

Financial Instruments 13,876 9,827 10,273

Other Non-current Assets 1,276,755 1,306,102 1,259,396

Interest i1 Associates 222 3,680 3,825

Total Non-current Assets 1,290,853 1,319,609 1,273,494

Total Assets 1,361,858 1,335,442 1,332,705

Liabilities

Current Liabilities

Payables and Accruals 23,074 11,860 14,547

Empbyee Entitlements 1,575 2,012 2,360

Current Portbn Pubk: Debt 25,000 45,000

Derivative Financial Instrument 9,655 14,798 9,655

Current Portbn Provisbns 312 311 312

Total current Liabilities 34,616 53,981 71,874

Non-current Liabilities

Pubk: Debt - Term Portbn 150,000 100,000 105,000

Other Term Debt 358 22

Non-current Provisbns 330 358

Total Non-current Liabilities 150,358 100,352 105,358

Total Liabilities 184,974 154,333 177,232

Net Assets 1,176,884 1,181,109 1,155,473

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14 December 2017

Western Bay of Plenty District Council Capital Expenditure Summary

For the period ended 31 October 2017

Year Year Year Full Actual Budget Variance Year

Budget Activity $'000 $'000 $'000 $'000

Transportation 3,417 5,233 1,815 15,698 Solid Waste 0 0 0 0 Recreation & Leisure 715 1,040 325 3,121 Storm water 1,019 393 (625) 1,180 Economic 0 89 89 268 Sustainable Development

5,151 6,756 1,605 20,267

Western Water 157 703 546 2,109 Central Water 1,158 731 (427) 2,194 Eastern Water 230 385 156 1!156 Water Supply 1,544 1,820 275 5,459

Information Centres 292 1,550 1,258 4,651 Community Facilities 72 194 122 581 Communit ies 364 1,744 1,380 5,232

Waihi Beach Wastewater 83 193 110 579 Katikati Wastewater 106 320 214 960 Omokoroa Wastewater 1,784 711 (1,073) 2,134 T e Puke Wastewater 99 295 196 885 Ongare Wastewater 13 562 550 1 687 Wastewater 2,199 2,132 (68) 6,395

Information Services 221 243 22 730 Corporate Assets 199 332 133 995 Corporate Services 152 233 81 700 Corporate Services 572 808 236 2,424

Total Capital Expenditure 9l831 13l259 3l428 39l778

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14 December 2017

Western Bay of Plenty District Coundl

Cost of Service Summary

For the ~eriod ended 31 October 2017

Net Cost of YTD Total Total Total Service YTD Budget Variance Budget

Operating Operating Surplus I Surplus I Under I Surplus I Revenue Costs (Deficit) (Deficit) (Over) (Deficit)

Activity $'000 $'000 $'000 $'000 $'000 $'000

Storm water 1,638 1,364 275 392 (117) 1,589 Solid Waste 496 456 40 (194) 234 (727) Natural Environment 200 103 97 (41) 139 (258) Economic 93 318 (224) (202) (22) (351) Representation 145 733 (588) (882) 294 (2,612) Transportation 10,237 6,171 4,066 1,850 2,216 6,556 Recreation & Leisure 980 1,709 (729} (1,331} 602 (4,008}

13,791 10,853 2,937 (408) 3,346 190

Strategic Planning/Monitoring 0 410 (410) (454) 44 (1,331) Resource Management Planning 280 (280) (307) 27 (911) Infrastructure Planning 4 4 66 - 62 199 Sustainable Development 4 690 (686) (695) 9 (2,044)

Western Water 1,436 1,135 301 326 (25) 1,215 Central Water 1,102 915 186 (19) 206 (43) Eastern Water 1,521 1,532 (11} (81} 69 (200} Water Supply 4,059 3,583 476 226 250 972

Resource Consents 186 467 (280) (84) (197) (222) Building Services 1,074 1,197 (123) (362) 239 (1,027) Animal Services 554 267 288 251 36 (244) Compliance and Monitoring 125 284 (160} (221} 61 (650} Regulatory 1,939 2,215 (275) (415) 140 (2,143)

Information Centres 923 913 9 (353) 363 (905) Community Development 88 631 (542) (637) 95 (1,879) Emergency Management 4 188 (185) (143) (42) (429) Community Facilities 255 459 (203} (174} (29} (334} Communities 1,270 2,191 (921) (1,308) 387 (3,548)

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14 December 2017

Net Cost of YTD Total Total Total Service YTD Budget Variance Budget

Operating Operating Surplus I Surplus I Under I Surplus I Revenue Costs (Deficit) (Deficit) (Over) (Deficit)

Activit:-t ~·ooo ~·ooo ~·ooo ~·ooo ~·ooo ~·ooo

Waihi Beach Wastewater 985 1,092 (107) (151) 45 (449) Katikati Wastewater 759 591 168 117 51 424 Omokoroa Wastewater 1,193 1,589 (396) 268 (664) 1,017 Te Puke Wastewater 973 617 357 568 (211) 1,728 Maketu Wastewater 169 474 (305) (261) (45) (804) Ongare Wastewater 7 (7) 297 (303) 869 Wastewater 4,079 4,369 (290) 838 (1,128) 2,785

Financial Services 276 136 139 250 (111) 516 Information Services 20 251 (231) (277) 46 (750) Corporate Assets 98 748 (650) (286) (364) (508) Corporate Services 98 642 (544) (218) (326) (554) Corporate Services 492 1,854 {1,362) (531) (830) (1,296)

Treasury Operations 522 102 420 382 38 1,018 Rates Appropriation 7J92 610 7,182 7,376 (194) 20,878 Rates and Treasury 8,315 712 7,602 7,758 (155) 21,896

Total 33,949 26,467 7,482 5,464 2,018 16,813

•••.. .......•..................... ~~~~ .

Ian Butler Finance ager

Approved Kumaren Perumal Chief Financial Officer

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APPENDIX A

ADDITIONAL LEVELS OF SERVICE Financial Year Actual Budget Variance Variance Explanation Annual Plan

2017/18 For the 4 months ended 31 October 2017 Year to Date Year to Date Year to Date Full Year Revised (Under)/Over Budget

'REPRESENTATION

236801 001 Representation Review - Triennially 7,721 10,000 (2,279) 30,000 250401 001 Triennial Elections 668 (668) 2,000 284801 001 Elected Members induction 296101 001 Recruitment of CEO 11 01 01 0090 Elected Members 7,721 10,668 (2,947) 32,000

PLANNING FOR THE FUTURE

151105001 Kaimai Reserves Management Plan (14,423) (14,423) 151107001 Reserve Management Plans I Concept Plan Reviews 18,040 1,668 16,372 5,000 175602 001 L TCCP Development and Adoption 13,591 43,332 (29,741) 130,000 175906 001 Freedom camping policy/bylaw 175910 001 Policy Review & Development 1,668 (1 ,668) 5,000 259505 001 Te Puna Community Development Plan 8,892 8,892 259506 001 Paengaroa Community Development Plan 259507 001 Community Development Plan - Maketu 287702 001 Solid Waste Action Plan Review (1) 288702 001 Strategy Review - Natural Environment 289102 001 Strategy Review - Economic 1,668 (1 ,668) 5,000 293002 001 Bylaw Review & Development 1,668 (1 ,668) 5,000 298101 001 Strategy Review - Sustainable Development 311401 001 COBOP Coordinator Cost Share 3,332 (3,332) 10,000 320201 001 Review Regulatory Strategy 330601 001 Polic:t review and investi9ations for coastal erosion and land instabilit:t 13 01 01 0090 Strategic Planning Management 26,099 53,336 (27,237) 159,999

317501 001 Omokoroa Central Area Master Plan 252210 001 Monitoring Reports (CO & SOE) 294208 001 Structure Plan Reviews 6,668 (6,668) 20,000 252208 001 Smart9rowth lm~lementation- Coordination Share 57,280 33,332 23,948 100,000 13 02 01 0090 Resource Management Planning 57,280 40,000 17,280 120,000

TRANSPORTATION

324009 001 Strategic Reading - Operating Costs- Traffic Modelling etc. 5,019 67,880 (62 ,861) 203,642 324013 001 Trans~ort - Service relocation 69,096 (69,096) 207,284 30 02 14 0090 Strategic Roading 5,019 136,976 (131 ,957) 410,926

279202 001 Property Purchases Reading 3,054 51 ,820 (48 ,766) 155,463 305113 001 Communit:t Event Traffic Mana9ement 30 03 01 0090 Asset Management 3,054 51,820 {48,766) 155,463

152301 001 Safet:t Administration Pro9ramme 50,000 16,064 33,936 48,193 30 05 03 0090 Road Safety 50,000 16,064 33,936 48,193

WATER SUPPLY

243636 001 WSZ - Water demand managment 36,668 (36 ,668) 110,000 310601 001 Asset Validation - Western Water 2,388 3,332 (944) 10,000 40 01 01 0090 Western Water 2,388 40,000 (37,612) 120,000

243333 001 Central Supply Zone - Water Demand & Management 8,918 53,332 (44 ,414) 160,000

165

APPENDIX A



310701 001 Asset Validation - Central Water 4,935 3,332 1,603 10,000 40 01 02 0090 Central Water 13,853 56,664 (42,811) 170,000

310801 001 Asset Validation- Eastern Water (1 0,420) 3,332 (13 ,752) 10,000 287117 001 ESZ - Water demand management 40 01 03 0090 Eastern Water (10,420) 3,332 (13,752) 10,000

COMMUNITIES

148804 001 Tauranga Orchestra Grant 332 (332) 1,000 148805 001 Katikati Open Air Art Grant (Murals) 3,286 2,668 618 8,000 148809 001 Community Grants- Te Puke/Maketu 11 ,000 6,668 4,332 20,000 148810 001 Community Grants - Waihi Beach/Katikati 24,174 6,668 17,506 20,000 148811001 Community Grants - Kaimai 2,000 6,668 (4,668) 20,000 148812 001 Community Matching Fund -Accumulated Ecological Fund 19,000 13,332 5,668 40,000 315401 001 WBOP Sub-Regional Arts & Culture Strategy Contribution 336101 001 Museum Facilities 20,000 (20,000) 60,000 342701 001 BOP Film Trust (6,072) 6,072 (18 ,200) 42 01 01 0090 Communi~ Develo~ment & Grants 59,460 50,264 9,196 150,800

331001 001 Supporting lwi & Hapu Management 8,332 (8,332) 25,000 334801 001 Marae Maintenance 11,000 (11 ,000) 33,000 323201 001 Papakainga Development 20,000 13,332 6,668 40,000 42 01 02 0090 Cultural Develo~ment Su~~ort 20,000 32,664 (12,664) 98,000

323103001 Tsunami System Education programme 832 (832) 2,500 156302 001 Lifeline Facilities Stud~ 3,332 (3,332) 10,000 42 02 01 0090 Emergency Management 4,164 (4,164) 12,500

248801 002 Audio Visual - Hastie Grant - O~erating Costs 2,538 2,538 42 03 04 0090 Service Centre & Libra~ - Te Puke 2,538 2,538

330902 001 APNK {Aotearoa Peo~les Network Kaharoa)- O~erating Costs 6,668 (6,668) 20,000 42 03 07 0090 District Libra~ Services 6,668 (6,668) 20,000

280801 001 Katikati Hall Improvements 5,992 4,412 1,580 13,230 280803 001 Ohauiti Hall Improvements 1,314 1,400 (86) 4,200 280804 001 Omanawa Hall Improvements 1,768 1,268 500 3,800 280805 001 Omokoroa Hall Improvements 26,307 4,768 21 ,539 14,300 280806 001 Oropi Hall Improvements 280825 001 Oropi Hall improvements 145,000 145,000 280809 001 Paengaroa Hall Improvements 3,749 3,700 49 11 '1 00 280810 001 Pyes Pa Hall Improvements 1,446 728 718 2,180 280811 001 Te Puke Hall Improvements 9,176 12,768 (3,592) 38,300 280812 001 Te Puna Community Centre Hall Improvements 2,116 (2,116) 6,350 280813 001 Te Puna War Memorial Hall Improvements 280815 001 Community Hall - Waihi Beach 2,568 (2 ,568) 7,700 280816 001 Kaimai Hall 1,930 692 1,238 2,080 280819 001 Pukehina Beach Commercial Centre Improvements 832 (832) 2,500 280820 001 Te Ranga Hall Improvements 2,945 668 2,277 2,000 280822 001 Whakamaramara Hall Improvements 2,116 (2 ,116) 6,350 42 04 03 0090 Communit~ Halls 199,627 38,036 161,591 114,090

166

APPENDIX A



RESERVES & FACILITIES

213404 001 Asset Management ~ian 2,581 16,668 (14 , 087~ 50,000 44 01 01 0090 Reserves & Facilities Management 2,581 16,668 (14,087) 50,000

253801 001 Maintenance -Scheduled (Excel) 295101 002 Skatepark - Jubilee Park Operational 260101 002 Haiku Park Walkway Extension (Operating Costs) (191) (191) 260106 002 Mill Block Access (Opex) 3,023 3,023 260313 001 Kauri Point- Operations & Conservation Plan Manual 3,100 (3, 1 00) 9,300 294503 002 Omok Sports Grnd - Hardcourts opex (450) (450) 294601 002 Omokoroa New Urban Areas Walkway 12/13- Community Board Funded 336701 001 Opureora Marae Toilet- Service Delivery Contract 3,332 (3,332) 10,000 320801 002 District Reserves Asset Renewals (operational) (20,000) (20,000) 330701 002 Tauranga Harbour Esplanade Reserves Management Project (operational) 331201 002 Tauranga Harbour Margins Project (operational) 312502 001 District Signage - Operating 9,708 3,332 6,376 10,000 44 01 02 0090 District Reserves (7,910) 9,764 (17,674) 29,300

326104 001 Te Puke Aquatic Centre- Painting 326105 001 Te Puke Aquatic Centre- Repairs & Maintenance 1,000 6,668 (5,668) 20,000 163503 001 Te Puke Aquatic Centre Service Delivery Contract 5,635 33,332 (27,697) 100,000 165401 001 Dave Hume Swimming Pool Service Delive~ Contract 16,500 24,000 (7 , 500~ 72,000 44 01 04 0090 Swimming Pools 23,135 64,000 (40,865) 192,000

281505 002 Omokoroa Sea Walls Operational 322003 001 Tauranga Harbour Recreation Strategy Harbour Forum 332 (332) 1,000 321101 002 Coastal Marine Structures Renewals - Operational 322004 001 Tauranga Harbour Recreation Strategy Monitoring 1,668 (1 ,668) 5,000 328001 001 Omokoroa Geolog:t - o~erational 19,810 19,810 44 02 01 0090 Harbour Structures 19,810 2,000 17,810 6,000

289835 001 TECT All Terrain Park- Plans & Assessments 6,668 (6 , 668~ 20,000 44 03 02 0090 TECT All Terrain Park 6,668 (6 ,668~ 20,000

WASTEWATER

310902 001 Waihi Beach Asset Validation 2,865 1,668 1 '197 5,000 319502 001 Waihi Beach Infiltration Investigation 13,960 13,332 628 40,000 336301 001 Waihi Beach WWTP Monitoring and Review 16,668 (16,668) 50,000 310901 001 Asset Validation -Wastewater Waihi Beach 60 01 01 0090 Waihi Beach Wastewater 16,825 31,668 (14,843) 95,000

311002001 Katikati Asset Validation 2,865 1,668 1 '197 5,000 323402 001 Katikati Infiltration Investigation 10,560 3,332 7,228 10,000 60 01 02 0090 Katikati Wastewater 10,990 5,000 5,990 15,000

331703001 Te Puna West Wastewater System- Preliminary Costs 338601 001 Omokoroa Asset Validation 2,865 1,668 1 '197 5,000 60 01 03 0090 Omokoroa Wastewater 2,865 1,668 1,197 5,000

311102 001 Te Puke Asset Validation (2,314) 1,668 (3,982) 5,000 60 01 04 0090 Te Puke Wastewater (2,31 4) 1,668 (3,982) 5,000

167

APPENDIX A


2017/18 For the 4 months ended 31 October 2017 Year to Date Year to Date Year to Date Full Year Revised (Under}/Over Budget

331803 001 Ongare Point Wastewater S~stem- Prelimina~ Costs 50 50 60 01 06 0090 Ongare Wastewater 50 50

318601 000 Waste Minimisation Funding Pool 12,253 43,332 (31,079) 130,000 318601 001 Waste Minimisation Funding Pool 4,931 4,931 319902 001 District Wide Trade Waste lmelementation 16,668 (16,668~ 50,000 60 02 01 0090 District Solid Waste 17,185 60,000 {42 ,815~ 180,000

STORMWATER

311302001 Stormwater Asset Validation 3,332 (3,332) 10,000 61 01 01 0090 Stormwater Network - Growth Communities 3,332 {3,332! 10,000

332630 001 Pukehina Stormwater Contribution to Waihi Drainage Societ~ 5,000 61 02 01 0090 Small Communities 5,000

NATURAL ENVIRONMENT

244606 001 Coastcare Materials 12,778 5,000 7,778 15,000 64 01 06 0090 Coastcare 12,778 5,000 7,778 15,000

305302 001 Waihi Land Drainage Societ~ - Canal Investigation 6,668 (6,668) 20,000 64 01 07 0090 Waihi District Drainage-Drains 6,668 {6,668! 20,000

ECONOMIC

336501 001 Waihi Beach Promotion Service Delivery Contract 20,747 13,832 6,915 41,494 299301 001 Te Puke Promotion Service Delivery Contract 32 ,938 21,960 10,978 65,875 299302 001 Te Puke Promotion Service Delivery Contract- Civic 9,164 (9,164) 27,486 299401 001 Town Centre Promotion Katikati 35,762 23,840 11,922 71 ,524 70 01 03 0090 Town Centre Promotion 89,447 68,796 20,651 206,379

327901 001 Business Process Review- Online Services 27,631 16,668 10,963 50,000 341501 002 Digital Enablement Plan Project 80 03 01 0090 Information Technolog~ 27,631 16,668 10,963 50,000

SUPPORT SERVICES

318701 002 Property Files Back Scanning 2 6,597 6,597 341101 001 Digitising Permanent Archive Records 1,305 230,000 (228,695) 690,000 318701 001 Property Files Back Scanning 13,332 (13,332) 40,000 80 03 03 0090 Information Services 7,902 243,332 (235,430! 730,000

338001 001 0000 Katikati Museum Costs - Oeerational Costs 60,000 60,000 80 04 08 0090 Strategic Property 60,000 60,000

312301 001 Business & Process lmerovement 6,668 (6,668~ 20,000 80 05 02 0090 Corporate & Planning Services -Management 6,668 (6,668) 20,000

312202001 Business & Process Improvement 6,668 (6,668) 20,000 80 05 03 0090 Engineering Services -Group Manager 6,668 (6,668) 20,000

168

APPENDIX A


2017/18 For the 4 months ended 31 October 2017 Year to Date Year to Date Year to Date Full Year Revised (Under)/Over Budqet

312101 001 Business & Process Improvement 312102 001 Business & Process Improvement 16,733 6,668 10,065 20,000 80 05 06 0090 Customer Services - Management 16,733 6,668 10,065 20,000

336201 001 2016 Develo~ment Code U~date 16,668 (16 ,668~ 50,000 80 0514 0090 Corporate Development 16,668 (16,668) 50,000

333301 001 Business Excellence Initiatives 3,332 (3 , 332~ 10,000 80 05 19 0090 Corporate Development 3,332 (3,332) 10,000

312402001 Business & Process Improvement - Policy & Planning 2,626 6,668 (4 ,042) 20,000 80 05 20 0090 Polic~ Planning Regulato~ - Management 2,626 6,668 (4,042) 20,000

TOTAL ADDffiONAL LEVELS OF SERVICE 736,954 1,130,228 p93,274~ 3,395,650

169

APPENDIXB

CAPITAL PROJECTS Financial Year Actual Budget Variance Variance Explanation Annual Plan

2017/18 For the 4 months ended 31 October 2017 Year to Date Year to Date Year to Date Full Year (Under) I Over Revised Budget

TRANSPORTATION

175602 002 L TCCP Development and Adoption (Capex) 13 01 01 8901 Strategic Planning Management

283202 001 Rural Community Reading 74,624 (74,624) 223,866 30 02 02 8901 Local Connections - Rural 74,624 (74,624) 223,866

282705 001 Waihi Beach Esplanade Regrade car park 16,668 (16,668) 50,000 282702 001 Waihi Beach reading projects 47,260 (47 ,260~ 141,782 30 02 03 8901 Community Roading - Waihi Beach 63,928 (63,928) 191,782

282802 001 Katikati Reading Projects 52 ,980 (52 ,980) 158,945 30 02 04 8901 Community Roading - Katikati 52,980 (52,980) 158,945

282902 001 Omokoroa Reading Projects 31 ,592 (31 ,592) 94,770 30 02 05 8901 Community Roading - Omokoroa 31,592 (31,592) 94,770

283002 001 Te Puke reading ~rejects 50,364 (50,364) 151,097 30 02 06 8901 Community Roading - Te Puke 50,364 (50,364) 151,097

283102 001 Maketu Community Reading 13,144 (13,144) 39,426 30 02 07 8901 Community Roading - Maketu 13,144 (13,144) 39,426

302801 001 Waihi Beach Reading Structure Plan 30 02 08 8901 Structure Plans - Waihi Beach

302901 001 Katikati reading SP - Urban 176,278 176,278 30 02 09 8901 Structure Plans- Katikati 176,278 176,278

303003 001 Omokoroa Reading Structure Plan - Rural 303003 282 Omokoroa Reading SP - Rural 94,068 (94,068) 282,203 303004 001 Omokoroa Reading Structure Plan - Strategic 412,687 337,284 75,403 1,011 ,850 303005 001 Omokoroa Reading Structure Plan - Rates 10,364 (10,364) 31 ,093 303006 001 Omokoroa Structure Plan Review 32,988 150,000 (117,012) 450,000 303008 001 Omokoroa Reading Structure Plan - Current Account 357 88,032 (87,675) 264,092 303009 001 Omokoroa Reading SP - Catchment - Cycle and Walkways 134,448 (134,448) 403,340 303001 001 Omokoroa Reading Structure Plan - Catchment 33,233 363,760 (330,527) 1,091 ,274 303010 001 Omokoroa Reading SP -Southern Industrial Area 33,332 (33,332) 100,000 30 02 10 8901 Structure Plans- Omokoroa 479,265 1,211,288 (732,023) 3,633,852

309101 001 Eastern Arterial Road 2013-16 144,236 39,404 104,832 118,209 30 02 13 8901 Regional Connections 144,236 39,404 104,832 118,209

324003 213 Strategic Reading- Te Puna I SH2 Intersection 324004 001 Strategic Reading - Rangiuru Industrial Reading 22,832 (22,832) 68,500 324011 106 Roading Share of Service Relocations 30 02 14 8901 Strategic Roading 22,832 (22,832) 68,500

170

APPENDIX B


2017/18 For the 4 months ended 31 October 2017 Year to Date Year to Date Year to Date Full Year (Under} I Over Revised Budget

TRANSPORTATION

Pavement Surfacing - Reseals One Network Maintenance Contract 283422 001 (ONMC) 283423 001 Pavement Surfacing - Reseals (PBC) 760,240 (760,240) 2,280,724 283425 001 Pavement Unsealed Strength ONMC 283426 001 Pavement Unsealed Strength (PBC) 207,272 (207,272) 621 ,820 283428 001 Pavement Rehabilitation ONMC 283429 001 Pavement Rehabilitation (PBC) 374,336 (374,336) 1,123,007 283431 001 Drainage Improvements ONMC 283432 001 Drainage Improvements (PBC) 10,448 (1 0,448) 31 ,339 283434 001 Ancillary Improvements ONMC 283435 001 Ancillary Improvements (PBC) 4,720 (4,720) 14,165 283421 001 Pavement Surfacing - Reseals ONMC 283438 001 Rural Road Improvements 194,528 (194,528) 583,587 283439 001 Pavement Seal Widening ONMC 283440 001 Pavement Seal Widening ONMC 283441 001 Pavement Seal Widening (PBC) - @ 3km pa 259,104 (259,104) 777,313 283499 001 BOP West Renewals Contra 1,119,945 1,119,945 283442 001 Seal Extension 2015-16 Funded from Current Account 283408 002 Seal Extension 155,432 355,344 (199,912) 1,066,029 283443 002 Omokoroa Rd Rehab- Funded from 2015 Roading Surplus 283443 003 Tauranga Eastern Link (TEL) construction 283443 004 Urban Upgrading - Funded from 2015 Roading Surplus 283444 001 Road Surplus 2015-16 Funded from Current Account 283437 001 Rural Road Improvements 342601 001 LED Lighting Conversion 1,013,332 (1 ,013,332) 3,040,000 30 03 01 8901 Asset Management 1,275,377 3,179,324 (1 ,903,947) 9,537,984

Minor Safety Projects- 2016 New Zealand Transport Authority (NZTA) 210411 001 subsidy 42,564 42,564 210412 001 Minor Safety Projects- 2017 NZTA subsidy 128,819 128,819 210413 001 Minor Safety Projects 350,104 (350, 104) 1,050,317 210407 001 Minor Safety Projects 618,324 618,324 304602 001 Level crossing warning device 304603 001 Level Crossing Warning Device 304604 001 Level crossing warning device 10,364 (10,364) 31 ,092 30 05 03 8901 Road Safe~ 789,707 360,468 429,239 1,081,409

307601 001 Walking & Cycling - Rural 105,280 (105,280) 315,837 337701 001 Tauranga Moana Coastal Cycle Trail - Waihi to Waihi Beach 48,893 48,893 337701 002 Omokoroa to Tauranga- Tauranga Moana Coastal Cycle Trail 73,833 73,833 337702 001 Sections 1-4 Omokoroa Foreshore 287,309 287,309 337702 002 Sections 5 ECMT railway bridge harbour crossing 3,279 3,279 337702 003 Sections 6-7 10,990 10,990 337702 004 Sections 8-9 Plummer Road to Kiwirail Bridge 7,600 7,600 337702 005 Section 10 ECMT railway bridge harbour crossing 60,434 60,434 337702 006 Sections 11-15 (20,000) (20,000) 337702 007 Sections 16-19 Lochhead Road to ECMT Railway 10,825 10,825

171

APPENDIX B



337702 008 Sections 20-23 6,177 6,177 337702 009 Section 24 Wairoa Bridge river crossing 20,214 20,214 337702 010 Preliminary I Contract Administration

337703 001 Tauranga Moana Coastal Cycle Trail- Cycleway Tauranga Eastern Link 34,739 34,739 337703 004 TMCCT - Paengaroa Road - Rotoiti 8,166 8,166 307601 002 Urban footpath Development 10,000 (1 0,000) 30,000 307604 001 District Walking - Off-road 17,272 {17 , 272~ 51,821 30 05 04 8901 Cycling & Walking 552,458 132,552 419,906 397,660

WATER SUPPLY

243624 001 Western Supply Zone Bulk Flow Meters (12,948) (12,948) 337201 001 Western Supply Zone Water Modelling Calibration 250 6,668 (6,418) 20,000 336901 001 Western Supply Zone- Wharawhara Road WTP Generator (2, 195) (2, 195) 318201 001 District Wide Water Metering Project 188,460 446,140 (257,680) 1,338,423 340801 001 Western Supply Zone Reservoirs, Pumps & Controls renewals 24,332 (24,332) 73,000 243619 001 Western Water Reticulation Improvements (16 ,787) 185,580 (202,367) 556,743

Western Water Supply Zone - Bridge & Stream Crossing Renewals -243619 006 FMECA 13,552 (13,552) 40,660

Western Water Supply Zone -Water Treatment Plant Upgrades & 243619 007 Improvements 243619 008 Western Water Supply Zone - Resource Consents

Western Water Supply Zone - Road Projects -Area Wide - 50%150% 243619 009 Cost Sharing - Road Management Plan Driven 26,748 (26,748) 80,250 40 01 01 8901 Western Water 156,779 703,020 (546,241) 2,109,076

243307 001 Omokoroa Supply 243320 001 Central Supply Zone -Additional Bore 124,119 361 ,668 (237,549) 1,085,000 340601 001 Central Supply Zone Water Modelling Calibration (1 ,833) 3,332 (5,165) 10,000 243336 001 Western Ave Pipe Extension 243310 001 Reticulation Improvements 1,035,736 288,800 746,936 866,408 243310 006 Central Water Supply Zone - Bridge & Stream Crossing Renewals - FMEC 13,544 (13,544) 40,630

Central Water Supply Zone- Water Treatment Plant Upgrades & 243310 007 Improvements 46,128 (46,128) 138,386 243310 008 Central Water Supply Zone- Resource Consents

Central Water Supply Zone - Road Projects -Area Wide - 50%150% Cost 243310 009 Sharing - Road Management Plan Driven 17,832 {17 , 832~ 53,500 40 01 02 8901 Central Water 1,158,022 731,304 426,718 2,193,924

287112 001 Pongakawa Water Treatment Plant Enhancement I Stage 2 142,962 50,000 92,962 150,000 287113 001 ESZ Bulk Flow Meters 23,332 (23,332) 70,000 287118 001 Te Puke Infrastructure areas 3 + 4 28,668 (28,668) 86,000 323801 001 District Wide Water Metering - Eastern Supply Zone (7,500) (7,500) 340701 001 Eastern Supply Zone Water Modelling Calibration 3,000 3,332 (332) 10,000 243002 001 Eastern Water Reticulation Improvements 61,474 72,147 (1 0,673) 216,440 243002 006 Eastern Water Supply- Boost Lift & Pump Replacements 8,560 (8,560) 25,680

Eastern Water Supply Zone -Water Treatment Plant Upgrades & 243002 007 Improvements 100,684 (100,684) 302,055

172

APPENDIX B



243002 008 Eastern Water Supply Zone - Resource Consents Eastern Water Supply Zone - Road Projects -Area Wide - 50%/50% Cost

243002 009 Sharing - Road Management Plan Driven 27,877 17,832 10,045 53,500 243002 010 Eastern Water Supply Zone - Raymond Dam Purge Valve 243002 011 Eastern Water Supply Zone- Maketu Resevoir (seal failure) 243002 012 Bush Sueel:i imerovements 1,750 80,852 (79, 102) 242,560 40 01 03 8901 Eastern Water 229,562 385,407 (155,845) 1,156,235

COMMUNITIES

318401 001 Revitalisation - Reception Area Barkes Corner 23,163 23,163 42 03 01 8901 Service Centre - Barkes Corner 23,163 23,163

332201 001 Katikati Library Building 105,425 1,416,668 (1 ,311 ,243) 4,250,000 332201 002 Katikati Library Build - RCP 13,600 13,600 332201 003 Katikati Library Build - Cove Kinloch 950 950 332201 004 Katikati Library Build - Opus 56,616 56,616 332201 005 Katikati Library Build - Boffa Miskel 332201 006 Katikati Library Build - A & J Demolition 332201 007 Katikati Library Build - Design Acoustics Ltd 332201 008 Katikati Library Build - Crowther & Co 16,236 16,236 42 03 03 8901 Service Centre & Library - Katikati 192,827 1,416,668 (1 ,223,841) 4,250,000

248801 001 Audio Visual - Hastie Grant 263 4,000 (3,737) 12,000 42 03 04 8901 Service Centre & Library - Te Puke 263 4,000 (3,737) 12,000

282105 001 District Library Book Purchases New 16,100 (16,100) 48,296 307202 001 District Library - Self Issue Stations 16,668 (16,668) 50,000 282103 001 District Library Book Purchases - Renewals 75,677 96,808 (21,131) 290,419 282103 002 Katikati Libra!::i {Books & Audio VisuaQ (31) (31) 42 03 07 8901 District Library Services 75,646 129,576 (53,930) 388,715

280001 001 Pensioner Housing Capital Requirements 64,038 16,668 47,370 50,000 42 04 01 8901 Pensioner Housing 64,038 16,668 47,370 50,000

264316 001 Katikati Cemetery Berms 299502 001 Oropi Cemetery Berms & Roadway 2,204 (2,204) 6,615 299602 001 Maketu Cemetery Berms & Rock Wall 5,228 (5,228) 15,683 264306 001 KK Cemetery Berms 264402 001 Te Puke Cemetery Berms 4,955 6,668 (1 ,713) 20,000 42 04 02 8901 Cemeteries 4,955 14,100 (9,145) 42,298

280823 001 Te Puke Hall strengthening 3,210 163,000 (159,790} 489,000 42 04 03 8901 Communit:i Halls 3,210 163,000 ~159,790) 489,000

RESERVES & FACI LITI ES

213405 001 Infrastructure Services Asset Management System Upgrade 44 01 01 8901 Reserves & Facilities Management

173

APPENDIX B



212914 001 Moore Park Katikati -Council Funded 100,228 (100,228) 300,678 212915 001 Moore Park Katikati- Community Funded 225403 001 District Wide Reserves Minor Works 8,634 8,332 302 25,000 244912 001 General Reserve Acquisition (29,516) 66,668 (96,184) 200,000 245807 001 Broadlands Block -Community Pitch & Putt 5,000 (5,000) 15,000 245807 004 Broadlands Block - Plantings, Seeds etc. 245807 006 Broadlands Block - Walkway Gravel Surface 246005 004 Pohutakawa Park - Parking Construction 26,668 (26,668) 80,000 246005 007 Pohutakawa Park -Toilet New With Art 246506 001 Toilet & Capital Development 27,663 69,532 (41 ,869) 208,600 260101 001 Haiku Park walkway extension 260106 001 Mill Block Access 260511 001 Dotterel Point Reserve- Capital Landscape Development 2,273 2,273 260520 001 Otamarakau I Rogers Rd - Specimen Trees 260725 001 Dr North Reserve - Capital Development 265808 001 Katikati Foreshore Reserves Walkway Extension 265832 001 Tanners Point Foreshore Reserve - Capital Development 265833 001 Tamawhariua - Capital Landscape Development 265834 001 Tanners Utility Reserve -Capital Landscape Development 281002 001 Toilet & Extend Boat Ramp 2,800 45,832 (43,032) 137,500 294503 001 Omokoroa Sports Ground - Hardcourts 25,088 35,000 (9,912) 105,000 294507 001 Omokoroa Sports Ground -Council Funded 2,306 100,000 (97,694) 300,000 294508 001 Omokoroa Sports Ground -Community Funded 294509 001 Omokoroa Sports Ground - Skate Facility 1,957 1,957 294601 001 Omokoroa new urban areas walkway 12/13 Community Board Funded 294801 001 Te Puna Station Rd Harbour Access 12/13 30,000 (30,000) 90,000 294802 001 Car park 10,000 (1 0,000) 30,000 295101 001 Skate park -Jubilee Park (Previously Hayward Reserve) 3,499 3,499 295308 001 Park Road - Capital Development 312501 001 District Signage- Capital 1,792 6,668 (4,876) 20,000 320801 001 District Reserves Assets Renewals 335,696 123,332 212,364 370,000 321801 001 Waihi Beach Community Centre- Toilet 321801 002 Waihi Beach Community Centre - Hard Court & Fencing 321801 003 Waihi Beach community centre - Skate Park 322102 001 Wilson Park

322501 001 Maramarua Park , Pukehina Beach playground , road frontage Car Park (27,035) (27,035) 322708 001 Pongakawa- 2 replacement tennis courts 322710 001 Pongakawa - Reserve Development 330701 001 Tauranga Harbour Esplanade Reserves Management Project 494 10,000 (9,506) 30,000 330801 001 Panepane Point Reserve Development 10,000 (10,000) 30,000 331201 001 Tauranga Harbour Margins Project 1,400 10,000 (8,600) 30,000 342001 001 District Reserves Erosion Protection Works 6,510 66,668 {60, 158} 200,000 44 01 02 8901 District Reserves 363,559 723,928 (360,369) 2,171,778

281505 001 Omokoroa Seawalls 250 250 281507 001 Omokoroa Horizontal Board Drains 281509 001 One Mile Creek - Bank Protection (1 ,220) 8,332 (9,552) 25,000

174

APPENDIX B



295203 001 Omokoroa Boat Ramp Construction 33,332 (33,332) 100,000 321101 001 Coastal Marine Structures Renewals 309,115 186,332 122,783 559,000 44 02 01 8901 Harbour Structures 308,145 227,996 80,149 684,000

289823 001 TECT All Terrain Park- Subhub & Park Signage 9,790 6,668 3,122 20,000 289824 001 TECT All Terrain Park- Plantings 24,995 5,000 19,995 15,000 289840 001 TECT All Terrain Park- Asset Renewals 30,000 (30,000) 90,000 289841 001 TECT All Terrain Park- Cell Phone Tower 289843 001 TECT All Terrain Park- Road Sealing 289808 001 TECT All Terrain Park Grants Infrastructure- Trails 8,561 33,332 (24,771) 100,000 289808 008 TA TP - Subhub Kiosk & Shelter Structures (x3) 289815 001 TECT All Terrain Park- Reading (New & Upgrades) 44 03 02 8901 TECT All Terrain Park 43,346 75,000 (31 ,654) 225,000

326103 001 Te Puke Aquatic Centre- Capital 13,332 (13,332) 40,000 44 01 04 8901 Swimmin~ Pools 13,332 (13,332) 40,000

WASTEWATER

168603 001 Waihi Beach Wastewater Treatment Plant Renewals (24,768) 33,000 (57,768) 99,000 340501 001 Wastewater Modelling 9,110 10,000 (890) 30,000 226001 001 Pump Station Renewals 33,332 (33,332) 100,000 226025 001 Waihi Beach Treatment Plant u~grade additional seration ca~acit:t 98,759 116,668 ~17 , 909} 350,000 60 01 01 8901 Waihi Beach Wastewater 83,101 193,000 (109,899) 579,000

225723 001 Wastewater Pump Station Renewals 75,378 21 ,668 53,710 65,000 225724 225 Wastewater Treatment Plant Renewals 133,332 (133,332) 400,000 225742 001 Katikati Pump Station Additional Storage (223) 98,332 (98,555) 295,000 225727 727 Katikati Wastewater Treatment Plant renewals of resource consent 26,571 66,668 (40.097) 200,000 225741 001 Katikati Treatment plant, wetland upgrade 4,568 4,568 60 01 02 8901 Katikati Wastewater 106,294 320,000 (213,706) 960,000

229815 001 Omokoroa Wastewater Pumpstation Renewals 20,000 (20,000) 60,000 317301 001 Omokoroa Structure Plan Utilities Wastewater 387,000 387,000 331701 001 Te Puna West Wastewater System 1,397,395 624,662 772,733 1,874,000 336601 001 Omokoroa Manhole Re~air 66,668 (66,668) 200,000 60 01 03 8901 Omokoroa Wastewater 1,784,395 711,330 1,073,065 2,134,000

220104 001 Te Puke WWTP Micro Screen 46,668 (46,668) 140,000 225615 001 Wastewater Pump Station Renewals 4,882 16,668 (11,786) 50,000 225619 001 Wastewater Treatment Plant Renewals 53,317 138,332 (85,015) 415,000 225620 620 Te Puke Wastewater Treatment Plant Renewals of Resource Consent 40,638 93,332 (52 ,694) 280,000 60 01 04 8901 Te Puke Wastewater 98,837 295,000 (196, 163) 885,000

335001 001 Maketu Wastewater Treatment Plant Operations Improvements (13,245) 50,000 (63,245) 150,000 335003 001 Maketu Wastewater Pump Stations Improvements 127,388 127,388 60 01 05 8901 Maketu Wastewater 114,143 50,000 64,143 150,000

331801 001 Ongare Point wastewater system 12,656 562,330 (549,674) 1,687,000

175

APPENDIX B



60 01 06 8901 Ongare Wastewater 12,656 562,330 (549,674) 1,687,000

265202 001 Katikati Recycling Centre expansion 60 02 02 8901 Western Solid Waste

304404 001 Omokoroa Solid Waste- 491 Omo 60 02 04 8901 Omokoroa Solid Waste

STORMWATER

340201 001 Asset Management - Waihi & Drainage District 226305 001 Open Drains Waihi Beach 226332 001 Stormwater Pump Station Renewals 15,368 17,468 (2 , 1 00) 52,400 226347 001 Otto Rd - Drainage System (19,764) (19,764) 226350 001 One Mile Creek - repair outlet gabions 9,332 (9,332) 28,000 226352 000 Waihi Beach 2 Mile Creek East Bank 122,421 122,421

226353 000 Waihi Beach 2 Mile Creek West Bank 8,655 66,668 (58,013) 200,000 226524 001 Omokoroa Stormwater Renewals 40,000 (40,000) 120,000 226653 001 Te Puke Upgrade Cooney PI 226354 000 Upgrades Adela Stewart Dr Roretana Dr 1,667 66,668 (65,001) 200,000 226626 001 Upgrades Bayley PI Clydesburn Ave Washer PI 226635 001 Upgrades Noel Bowyer Park Fairview PI Brown T 20,000 (20,000) 60,000 226654 001 Te Puke Stormwater Upgrades Beatty Ave 53,332 (53,332) 160,000 317201 001 Omokoroa SP Utilities Stormwater 807,334 807,334 317202 001 Omokoroa SP - Omokoroa Pond, Dam and Ancillary works P02 for SHA 1,711 1,711 319601 001 Stormwater Network Upgrade 79,428 76,668 2,760 230,000 331501 001 Otawhiwhi Marae stormwater drain 16,668 (16,668) 50,000 340001 001 Growth Communities Stormwater Infrastructure Rehabilitation 5,000 (5,000) 15,000 340101 001 District Wide Stormwater Modelling 3,104 20,000 (16,896} 60,000 61 01 01 8901 Stormwater Network - Growth Communities 1,019,924 391,804 628,120 1,175,400

332614 001 Small Communities Stormwater Infrastructure rehabilitation 1,668 (1 ,668) 5,000 332625 001 Te Puna Upgrades Wallace Rd Stage 2, Fairlie Gr (1 ,123) (1 ,123) 332601 001 Te Kauri Restoration 61 02 01 8901 Small Communities (1,123) 1,668 (2,791) 5,000

332401 001 Minden Stormwater Investigation & Remedial Work 61 03 01 8901 Minden

244601 001 Coastcare Service Capital Works 64 01 06 8901 Coastcare

ECONOMIC

326804 001 Katikati Town Centre Development- Ward Funded 29,492 (29,492) 88,480 326803 001 Katikati Town Centre Development- District Funded 326805 001 Katikati Town Centre Development- Capital Works Program 326806 001 Katikati Town Centre Dev- Cherry Court 326807 001 Katikati Town Centre Development- Unexpected Heroes

176

APPENDIX B

CAPITAL PROJECTS Financial Year Actual Budget Variance Variance Explanat ion Annual Plan


326903 001 Omokoroa Town Centre Develoement- District Funded 60,000 (60,000) 180,000 70 01 03 8901 Town Centre Promotion 89,492 ~89,492) 268,480

SUPPORT SERVICES

341501 001 Business Continuity Planning - Fibre Infrastructure Install (BOPLASS) 33,332 (33,332) 100,000 157103 001 Origen Application Development 21 ,873 21 ,873 157302 001 IT Application Software Development 10,013 71 ,668 (61 ,655) 215,000 157503 001 E-Business Development 2,200 33,332 (31 ,132) 100,000 212302 001 IT Infrastructure Development 187,018 93,168 93,850 279,500 80 03 01 8901 Information Technology 221,103 231,500 (10,397) 694,500

225501 001 Aerial Photography- Resupply 11 ,668 (11 ,668) 35,000 80 03 02 8901 GIS Operations 11,668 (11 ,668) 35,000

Barkes Corner Building 259908 004 Minor Alterations- Te Puke 6,668 (6,668) 20,000 259908 003 Minor Alterations - Omokoroa 259903 001 Minor Office Alterations 10,223 26,668 (16,445) 80,000 259905 001 Refurbishment 66,668 (66,668) 200,000 342200 001 Animal Shelter- Katikati 53,332 (53,332) 160,000 342200 002 Animal Shelter- Te Puke 2,700 53,332 (50,632) 160,000 259803 003 Area Offices 259803 001 Office Furniture & Fittings 13,633 23,000 {9,367) 69,000 80 04 07 8901 Corporate Property (Non-rate) 26,556 229,668 (203,112) 689,000

326201 001 Asset Purchase Mise Land Purchases 338301 001 Expenditure- Strategic Property Omokoroa Development 113,918 66,668 47,250 200,000 338301 002 Income - Strategic Property Omokoroa Development 324901 001 Asset purchase - Omokoroa Rd 338302 001 Expenditure- Strategic Property Katikati Development 42 ,898 35,300 7,598 105,900 341601 001 Expenditure- Omokoroa Special Housing Area 15,581 15,581 313501 001 Waihi Beach Town Centre Development 338302 002 Income- Strategic Property Katikati Development 80 04 08 8901 Strategic Pro~ert~ 172,397 101,968 70,429 305,900

315701 001 Purchase of Vehicles 152,331 233,336 (81 ,005) 700,000 80 0515 8901 Infrastructure Services- Strategic Pro~ Mngmt 152,331 233,336 (81,005) 700,000

341801 001 Timesheet System 80 0519 8901 Timesheet S~stem

44 03 02 8907 TECT All Terrain Park (20,000) 20,000 (60,000)

TOTAL CAPITAL EXPENDITURE 9,831,450 13,259,263 p,427,813~ 39,777,806

177Council

14 December 2017

New Zealand Local Government Funding Agency Limited - Quarterly Report for the Period Ending 30 September 2017

Executive Summary

The purpose of this report is to provide the Elected Members with New Zealand Local Government Funding Agency's (LGFA) quarterly report (Q1) for the period ended 30 September 2017. Please refer to (Attachment A).

With the exception of "estimated interest cost savings %" the LGFA continue to meet the financial performance targets set under the Statement of Intent, improve on the prior period financial performance and innovate. For example LGFA achieved a historic milestone in providing 100% of all council borrowing in the quarter and on a rolling 12 month basis has undertaken 94.9% of total sector borrowing.

Kumaren Perumal Chief Financial Officer

A3036407 Page 1

178ATTACHMENT A

Quarterly Report NEW ZEALAND Quarter 1:

Period ended: 2017-2018 30 September 2017

LOCAL GOVERNMENT FUNDING AGENCY

Contents

A.

B.

c. D.

E.

F.

G.

H.

September quarter issuance and highlights summary

Tenders during quarter

Key performance indicators

Summary financial information (provisional and unaudited)

Quarterly compliance summary

Performance against SOl objectives

1. Providing savings in annual interest costs for all Participating Local Authorities ("PLAs") on a relative basis to other sources of financing

2. Making longer-term borrowings available to PLAs

3. Enhancing the certainty of access to debt markets for PLAs, subject always to operating in accordance with sound business practice

4. Offering more flexible lending terms to PLAs

5. LGFA will monitor the quality of the asset book so that it remains of a high standard by ensuring it understands each PLAs financial position and the general issues confronting the Local Government sector

6. Operate with a view to making a profit sufficient to pay a dividend in accordance with its stated Dividend Policy

7. Provide at least SO% of aggregate long-term debt funding for PLAs

8. Ensure its products and services are delivered at a cost that does not exceed the forecast for issuance and operating expenses

9. Take appropriate steps to ensure compliance with the Health and Safety at Work Act 2015

10. Maintain LGFA's credit rating equal to the New Zealand Government sovereign rating where both entities are rated by the same Rating Agency

11. Achieve the Financial Forecasts

Investor relations I outlook

Key trends

Page

2

3

5

6

7

8

8

10

10

12

13

13

13

14

14

14

14

15

16

1

179

Quarterly Report

Quarter 1: 2017-2018 Period ended: 30 September 2017

ATTACHMENT A

LGFA' NEW ZEALAND LOCAL GOVERNMENT FUNDING AGENCY

A. September quarter issuance and highlights summary

Quarter Total Bespoke 2017 2019 2020 2021 2023 2025 2027 2033 Bonds issued $m 255 N/A 80 30 39 40 36 30 Loans to councils $m 290.4 242.4 5 7 28 8 Loans to councils- No. 36 30 1 2 2 1

Year to date Total Bespoke 2017 2019 2020 2021 2023 2025 2027 2033 Bonds issued $m 255 N/A 80 30 39 40 36 30 Loans to councils $m 290.4 242.4 5 7 28 8 Loans to councils- No. 36 30 1 2 2 1

Key points and highlights for the September quarter:

• The bond curve steepened over the quarter with long dated yields rising and short dated yields falling. The 2019 bond yield fell14 bps (0.14%) while the 2033 bond yield rose 11 bps (0.11%).

• LGFA issued a modest $255 million of bonds during the quarter across two tenders. The average term of issuance of 6.59 years was very short compared to the average term for the 2016-17 year of 8.87 years . LGFA bonds outstanding as at 30 September 2017 were $8.010 billion (including $350 million of treasury stock) .

• LGFA margins to NZGB and swap reversed the narrowing trend of the previous four quarters with spreads to NZGB unchanged (2019s) to 13 bps wider (2025s) and spreads to swap widening by 1 bps (2019s) to 23 bps (2033s).

• On-lending to council borrowers was $290.4 million including $242.4 million of bespoke loans (83% of total lending) during the quarter. Much of this borrowing activity related to council refinancing of their December 2017 loans. The average term of on-lending to councils during the quarter was 7.36 years which was significantly shorter than the prior quarter (9.38 years) and the average term of 8.20 years for the 2016-17 year.

• LGFA achieved a historic milestone in providing 100% of all council borrowing in the quarter and on a rolling 12 month basis has undertaken 94.9% of total sector borrowing.

• The short-term council borrowing product remains well supported by councils with loans outstanding of $296 million as at 30 September 2017. This was an increase of $64 million over the quarter although the number of councils using this product increased by five to twenty-four.

• LGFA Net Operating Gain (unaudited) for the three months to September 2017 was $3.342 million or $0.143 million below budget. The contributors were

o Net Interest Income of $4.736 million was $0.275 million below budget with the shortfall due in part to a $0.142 million negative variance from the valuation of some mismatch hedging swaps deemed to be ineffective for accounting purposes.

o Total expenses of $0.707 million were $47k below budget due to a lower than forecast usage of the DMO facility and slightly lower personnel costs . AIL payments were in line with forecast.

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B. LGFA bond tenders during quarter

LGFA held two bond tenders over the quarter.

Tender 48: 19 July 2017 $145 million

Tender48 Tender date: 19 July 2017

Apr-20 Apr-25 Apr-27 Apr-33

Total amount offered $m 50 40 25 30 Total amount allocated $m 50 40 25 30

Total number bids received 10 17 8 14

Total amount of bids received $m 106 64.864 38 43

Total number of successful bids 1 10 5 12

Highest accepted yield% 2.535 3.590 3.800 4.470 Lowest yield accepted% 2.535 3.550 3.770 4.350

Highest yield rejected % 2.600 3.625 3.850 4.580 Lowest yield rejected % 2.540 3.590 3.800 4.470

Weighted average accepted yield % 2.535 3.572 3.777 4.410

Weighted average rejected yield % 2.563 3.604 3.825 4.541

Coverage ratio 2.12 1.62 1.52 1.43

NZGB spread at issue bps 41.0 78.0 85.0 115.0

Swap spread at issue bps 15.0 44.7 48.5 81.7

Swap spread: AA council 26.25 54.5 63.5 88.5 bps Swap spread: AA- council 31.25 59.5 68.5 93.5 bps Swap spread: A+ council 36.25 64.5 73.5

I 98.5

bps Swap spread: unrated 41.25 69.5 78.5 103.5 council bps

ATTACHMENT A


We tendered the same maturities as the previous three tenders. Weighted average yields were 4 bps higher on the 2020s, 21 bps higher on the 2025s and 2027s and 26 bps higher on the 2033s compared to the previous June 2017 tender reflecting a steeper yield curve and soft bidding for the longer dated bonds.

Demand was good for the 2020s with one successful bid at 1.5 bps below prevailing secondary market mid rates. The 2025s and 2027s were issued 3 bps above prevailing mid rates while the 2033s were issued 8 bps above prevailing mid rates. Despite the small tender size, demand remained soft for the 2033s with a 12 bps successful bid range with only $43 million of bids for the $30 million tendered.

The spread to swap compared to the June 2017 tender was 1 bps wider on the 2020s, 8 bps wider on the 2025s, 6 bps wider on the 2027s and 11 bps wider on the 2033s. Spreads to NZGB were unchanged on the 2020s, 6 bps wider on the 2027s and 8 bps wider on the 2025s and 2033s.

The average maturity of LGFA bonds issued at 8.02 years was the shortest since the November 2016 tender.

Coverage ratio of 1.7 times was the lowest for a year and followed the June 2017 tender ratio of 1.9 times.

We issued $145 million of LGFA bonds and on-lent $144 million to nine councils.

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Tender 49: 23 August 2017

Tender49 Tender date: 23 August 2017 Apr-20 May-21 Apr-23

Total amount offered $m 30 30 30

Total amount allocated $m 30 30 39 Total number bids received 14 13 12

Total amount of bids received $m 116 107 74 Total number of successful bids 4 2 5

Highest accepted yield % 2.485 2.765 3.160 Lowest yield accepted % 2.480 2.735 3.140 Highest yield rejected % 2.570 2.870 3.370

Lowest yield rejected % 2.570 2.765 3.160 Weighted average accepted yield % 2.481 2.740 3.145 Weighted average rejected yield % 2.510 2.803 3.233

Coverage ratio 3.87 3.57 2.47 NZGB spread at issue bps 43.00 54.00 65.00

Swap spread at issue bps 16.80 25.60 39.00 Swap spread: AA council 28.0 39.75 55.75 bps Swap spread: AA- council 33.0

I 44.75

I 60.75

bps Swap spread: A+ council 38.0

I 49.75

I 65.75

bps Swap spread: unrated 43.0 54.75 70.75 council bps

ATTACHMENT A


$110 million

Weak market sentiment continued with both large Kauri and LGFA issuance in the June

Apr-27 quarter led to banks unwillingness to hold long

20 dated LGFA bonds in a background of global

11 bond market uncertainty and tight credit

11 spreads.

30 We anticipated the weaker sentiment and tendered a smaller size ($110 million) and

6 shorter duration. The 4.7 years weighted

3.780 average term of issuance was the second

3.740 shortest term of all forty-nine tenders.

3.890

3.790 The result was disappointing as we accepted $9 million less of the 2027s and over accepted the

3.766 2023s by $9 million due to poor bidding for the 2027s. Demand was soft for the 2027s with a 4

3.826 bps successful range for the $11 million

1.50 accepted but yields were 6 bps above the

86.00 prevailing market yield at the time. Demand

62.50 was stronger for the 2020s, 2021s and 2023s

77.8 with weighted average yields at prevailing mid rates on the 2020s and 2021s and 3.5 bps

82.8 above on the 2023s.

The spread to swap compared to the July 87.8

tender was 2 bps wider on the 2020s and 14

92.8 bps wider on the 2027s. Spreads to NZGB were 2 bps wider on the 2020s and lbps wider on the 2027s.

Coverage ratio of 2.97 times was satisfactory but tender size was modest.

While we issued $110 million of LGFA bonds we on-lent $75 million to six councils. The additional issuance was to fund loans we have made to council since the July tender.

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c. Key performance indicators

Measure Prior full year to

June 2017

Average base margin over Target% cost of funds for short term and long-term lending

Average actual 0.104%

%

Rolling 12 month

Estimated interest cost Target% savings%

2019 maturity 12 bps

As at quarter end


As at quarter

end


As at quarter end

Issuance and operating Target($ m) expenses (excluding AIL) YTD

Actual($ m) $4.67 m

Year to date

Lending (short and long Target($ b) term) to participating

Actual($ b) $7.736 b councils Year to date

Q1

30 Sep 17

0.10%

0.094%

(0.1086% for long term and

0.08% for short term

lending)

.../

Improvement on prior year

11 bps

X 13 bps

X 5 bps

X $1.33 m

$1.20 m

.../

$7.834 b

$8.101 b

.../

ATIACHMENT A

NEW ZEALAND LOCAL GOVERNMENT FUNDING AGENCY

Q2 Q3 Q4

31 Dec 17 31 Mar 18 30 Jun 18

0.10% 0.10% 0.10%

Improvement Improvement Improvement on prior year on prior year on prior year

$2.73 m $4.09 m $5.45 m

$7.932 b $8.03 b $8.128 b

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ATIACHMENT A


D. Summary financial information (provisional and unaudited)

Financial Year ($m) YTD as at Q1 YTD as at Q2 YTD as at Q3 YTD as at Q4

Comprehensive income 30-Sep-17 31-Dec-17 31-Mar-18 30-June-18

Interest income 88.68

Interest expense 83.95

Net interest revenue 4.73

Issuance and On-lending costs 0.49 -- ___,.

Approved issuer levy 0.19

Operating expenses 0.71

Issuance and operating expenses 1.39

Net Profit 3.34 1

Financial position ($m) 30-Sep-17 31-Dec-17 31-Mar-18 30-Jun-18

Retained earnings+ comprehensive income 30.83

Total assets (nominal) 8,338.71

Total LG loans (nominal) 8,101.05

Total LGFA bills (nominal) 350.00

Total LGFA bonds (nominal) 7,760.00

Total borrower notes (nominal) 124.45

Total equity 55.83

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Quarterly Report

Quarter 1: Period ended:

2017-2018 30 September 2017

LGFA bonds on issue (NZ$ million) As 30 September 2017 : NZ$ 8,110 million

Includes NZ$350 million treasury stock

$1,430 $1,439

ATIACHMENT A


15 Dec 17 15 Mar 19 15 Apr 20 15 May 21 15 Apr 23 15 Apr 25 15 Apr 27 14 Apr 33

E. Quarterly compliance summary

~lky Umtt

One-month Liquidity Monitor

Three Month Liquidity Monitor

Twelve Month Liquidity Monitor

Council Exposure (any 12-month period)

Liquidity Buffer

Partial Differential Hedge (PDH

Interest Rate Gap Report

Value at Risk (VaR)

Council Maturity (any 12-month period)

Funding Largest Council Exposure

Foreign Exchange Exposure

NZDMO Facility Utilisation

Counterparty Credit Limits

Auckland Council Exposure (proportion of total

Council exposure)

Balance Sheet Maturity Mismatch

Financial Covenants

Authorising Treasury transactions

>120%

>110%

>110%

<10% of Balance Sheet

>110%

$40,000

$250,000

$100m or 33% of LGFA borrowing

>100%

Nil

Report monthly

80% of Portfolio

$75m Counterparty (category 3)

<40%

<15% of Balance Sheet

Various (as set out on p13)

Two approvers, one signature

Details for compliance breaches over quarter. There were no breaches over the quarter.

Policy page Continuous ref Compliance

51-1.1 Yes

51-1.2 Yes

51-1.3 Yes

51-1.5 Yes

51-1.4 Yes

53-4.1 Yes

53-4.2 Yes

51-1.6 Yes

51-1.7 Yes

57-3.1 Yes

58-8.5 Yes

54 Yes

51-1.8 Yes

52-2.1 Yes

59 Yes

58-8.4 Yes

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Quarter 1: 2017 - 2018 Period ended: 30 September 2017

ATTACHMENT A


F. Performance against SOl objectives and performance targets

Primary objectives

1. Providing savings in annual interest cost s for all Participating Local Authorities

The LGFA on-lending base margins have been held constant since August 2015 at 9 bps (2017s and 2019s), 10 bps (2020s and 2021s) and 11 bps (2023s and longer) . The actual average base lending margin paid by

council borrowers wil l depend upon the term of council borrowing. The base margin charge covers our operating costs and provides for our capital to grow in line with the growth in our ba lance sheet to

maintain a capital buffer.

Our estimated annual savings to councils based upon the secondary market levels at 30 September 2017 of

LGFA bonds compared to bonds issued by Auckland and Dunedin councils is between 5 bps and 18 bps

depending upon the term of borrowing. The amount of savings has reduced in the past quarter as LGFA borrowing spreads have widened while Auckland and Dunedin borrowing margins are unchanged. Both

councils have not issued in the domestic capital markets for some time while LGFA has held nine bond tenders of $1.35 billion in total over the past twelve months.

Savings to AA rated councils (bps) 30-Sep-17 Auckland Dunedin Dunedin Auckland Auckland

2019 2020 2021 2022 2025

AA rated councils margin to swap 33 46 51 53 74

Less LGFA margin to swap -13 -18 -28 -34 -58

LGFA Gross Funding Advantage 20 28 23 19 16

Less LGFA Base Margin -9 -10 -10 -10.5 -11

Total Saving 11 18 13 8.5 5

Note that from 30 June 2017 we have removed the implied "LGFA effect" of 10 bps of savings in borrowing costs from the analysis . The LGFA effect was the assessment of immediate savings to councils when LGFA first commenced lending to councils in February 2012.

8

Documents

Key Financial Issues for the Four Months Ended 31 October …25p4fe6mo17q9stw0v5w/hierarchy...Council 14 December 2017 Key Financial Issues for the Four Months Ended 31 October 2017