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AGENDA
Finance, Audit and Risk Committee Meeting
Tuesday, 25 February 2020
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I hereby give notice that a Finance, Audit and Risk
Committee Meeting will be held on:
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Date:
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Tuesday, 25 February
2020
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Time:
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10am
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Location:
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Tauranga City Council
Council Chambers
91 Willow Street
Tauranga
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Please
note that this meeting will be livestreamed and the recording will be
publicly available on Tauranga City Council's website: www.tauranga.govt.nz.
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Marty Grenfell
Chief Executive
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7 Business
7.1 Mainstreet
Monitoring Report July to December 2019
File
Number: A11145224
Author: Michael
Vujnovich, Manager: Project Tauranga
Authoriser: Gareth
Wallis, General Manager: Community Services
Purpose of the Report
1. For Mainstreet
organisations to report to Council on their activities for the period July to
December 2019, to highlight issues, to provide a financial update, and to
provide plans for future activities.
Discussion
2. Mainstreet
organisations receive a targeted rate through Council.
3. As part of
Council’s agreement with Mainstreets, they must report every six months
on activities achieved, activities planned and any issues they want to bring to
the attention of Council. They are expected to provide a financial update at
end of each financial year, comment on tracking against budget in interim
reporting cycle and note any matters that Council needs to be made aware of.
4. This report
reflects the period 1 July 2019 to 31 December 2019.
5. All Mainstreet
organisations are in good financial health with all showing annual operating
surpluses and positive equity.
6. Activities
undertaken by all Mainstreet organisations appear to be having a positive
effect on the activation and economic vibrancy of their areas through events
and promotions.
7. Issues presented by
Mainstreets to Council – please see Appendix A for a summary of the
issues presented to Council. The following is in response to the issues
presented.
(a) Mount Mainstreet:
(i) Note name change to
“The Mount Business Association Incorporated”.
(ii) TCC’s Transportation
staff considered Mount Mainstreet’s proposal for signage directing people
from cruise ships and the beaches to the Mount shopping area. This was declined
by Transportation as this proposal did not meet the criteria for developing
such signage of being ‘for drivers’, easy to miss due to distance,
or affecting the safety of the traveller.
(iii) TCC Transportation staff are
working on a draft Parking Strategy. This document will outline key principles
on how parking supply and demand will be managed throughout the city. Should
Council adopt the strategy, staff will work with the Mainstreet organisations
to develop implementation plans for the key centres; City Centre, Mount
Maunganui and Greerton. Measures could include parking restrictions, time
restrictions and parking pricing.
(iv) TCC Transportation staff will
discuss the bus stop signs and route signage board with BoPRC who are
responsible for timetables and route maps.
(v) The sign for Te Papa o Nga
Manu Porotakataka is being refabricated due to errors in the first sign and is
expected to be installed shortly.
(vi) Working with TCC’s Urban Spaces,
Spaces & Places and Transportation teams to plan and resolve general street
appeal issues, including the lamp posts.
(b) Tauranga Mainstreet:
(i) Collaborating
with TCC’s Urban Spaces team to help resolve challenges and develop a
city centre strategy.
(ii) Traffic
counters have been established around the CBD. Tauranga Mainstreet and TCC are
sharing counter data.
(c) Greerton Village Mainstreet:
(i) Working with
Transportation regarding ongoing ‘tidy-up’ maintenance work.
(ii) Transportation are aware of
Greerton Village Mainstreet’s preference to engage in any consultation
for any further changes to the recent roadworks.
(iii) Greerton Village Mainstreet
note their preference to retain the begging bylaw.
(d) Papamoa Unlimited:
(i) No issues for Council
attention
Next Steps
8. Receive the report.
Attachments
1. Appendix A
Mainstreet Monitoring Report Summary July to December 2019 - A11163651 ⇩ 
2. Mount Mainstreet
Monitoring Report July-Dec 19 - A11259703 ⇩ 
3. Mount Mainstreet
Financials FY 2019 - A11264549 ⇩ 
4. Tauranga
Mainstreet Monitoring Report July - Dec 19 - A11163655 ⇩
5. Tauranga
Mainstreet Financials FY2019 - A11163656 ⇩
6. Greerton
Mainstreet Monitoring Report July - Dec 19 - A11163653 ⇩
7. Greerton
Mainstreet Financial report FY2019 - A11163652 ⇩
8. Papamoa Unlimited
monitoring report July - Dec19 - A11163659 ⇩
9. Papamoa Unlimited
YOY growth report 2020 - A11166716 ⇩
10. Promote Papamoa Inc.
Financials FY 2019 - A11163660 ⇩
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Finance, Audit
and Risk Committee Meeting Agenda
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25 February
2020
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Appendix
A: Mainstreet Monitoring Report to Finance, Audit and Risk Committee, 25
February 2020
For period 1 July to 31 December 2019
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Organisation
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Issues for Council
attention
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Summary of activities
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Looking forward
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Mount Mainstreet
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· Car parking – seeking to
increase availability for visitors
· Bus-stop and signage outside Bayleys
· Signage for Te Papa o Nga Manu
Porotakataka
· General street appeal – palm
holder-boxes are messy
· Directional Signage to the shopping
centre from Pilot Bay and Marine Parade (note that Transportation has
previously provided Mount Mainstreet a reasoned decline to this proposition)
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· Financials for FY2019 show an
operating surplus of $33,442 and positive equity of $228,427
· Rebranding for Mt Mainstreet
“Love the Mount”, collateral rebranding in progress
· Change of name from “Mount
Maunganui Mainstreet Incorporated” to “The Mount Business
Association Incorporated” to reflect and support a wider business
environment
· Business engagement –
competitions, surveys and emails
· Busking Festival in October 2019
· Friday night events in Te Papa o Nga
Manu Porotakataka
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· Continuing with “Love the
Mount” brand engagement strategies
· Mount Pride
· Evening Light Art exhibition
· Friday night events in Te Papa o Nga
Manu Porotakataka
· ANZAC Day commemorations
· Valentine’s Day
· Partnerships with external events
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Tauranga Mainstreet
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· Disruption to city
centre from increasing construction activity, showing a significant decline
in foot traffic (Devonport Road counter). This is challenging for businesses.
Collaborating with TCC Urban Spaces team to develop a city centre strategy
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· Financials for FY2019 show an
operating surplus of $35,490 and positive equity of $118,479
· Taste Tauranga, 30+
events promoting dining
· Cruise Ship shuttle bus
service, challenges to sustain the service
· Trustpower photographic exhibition,
a 10-week exhibition attracting people to the CBD
· Trustpower Christmas
Parade 70 floats with 780 participants, attracting 30,000+ people
· Christmas activations,
shopping spree promotion, Wearable art exhibition, advent calendar,
“Stuff the Bus” charitable donations collection, street
decorations, Carols on the waterfront
· Smart Digital Strategy
rollout to improve Downtown Tauranga brand, showing ongoing significant
increases in a variety of measures
· Tourist map refreshed
· Springfest – Labour
weekend promotion
· Marketing campaigns
including “more than meets the eye”, Hidden Gems, business
videos, and the Durham St promotion
· Downtown Tauranga
membership engagement activities
· Activation of vacant
spaces – aiming to increase vibrancy in CBD
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· Implement Activate
Vacant Spaces strategy in CBD
· Trustpower photographic
exhibition January to April 2020
· Look Fashion Month
– May 2020
· Growth workshops via the
PoweringOn programme
· Ongoing marketing and
member engagement and advocacy
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Greerton Village Mainstreet
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· Greerton Village members are keen to
be involved in consultation with TCC – prior to any decisions or
further work undertaken
· Homelessness and begging is still
present but significantly improving, hope to see bylaw retained
· The tidying up of Greerton Village.
Some work completed but very keen to see remaining work completed
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· Financials for FY 2018/19 show an
operating surplus of $5,498 and positive equity of $60,362
Highlights include:
· The biggest ever Cherry Blossom
Festival
· Kids Book Reading day celebrating
our Yarn Bombing installations
Marketing and promotional initiatives include:
· Yarn Bombing
· Mid-Winter Madness promotion
· Cherry Blossom Festival and Street Car Show
was held in September attracting a 5,500+ crowd
· Giant Christmas Hamper Promotion
· Christmas Carols around the Tree
Ongoing
· Greerton Village Website, Sun Media
Partnership and bi-monthly feature, NZME Radio, Media Works (The Breeze),
newly printed and revamped Greerton Village map distributed, Bay Waka, Town
signage, Social Media (up to 3200 likes for Facebook page), Random Acts of
Kindness, Greerton Village branded bags
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· Ongoing programmes continue, such as
“Let’s Grow Greerton” which seeks to improve perception of
Greerton, e-newsletters, Greerton business closed Facebook page, BA5
meetings, and ongoing relationship building
· Yarn Bombing in June
· January – Random Acts of
Kindness
· February – Valentines
chocolates
· March - St Patrick’s Day
family events
· April – Easter Egg Hunt
· May and June – yet to be
decided after feedback from January to March events
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Papamoa Unlimited
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· No issues for Council attention
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· Financials for FY 2019 show an
operating surplus of $8,727 and positive equity of $50,247
· 28 July – Polar Plunge, 500+
participants
· 29 September – Pedal Papamoa,
600+ participants
· 24 November – Santa Parade 36
floats, attended by 16,000+ people and was “the best Papamoa Santa
Parade ever”
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· Reviewing all events to ensure
relevance to the local community
· Possibility of replacing Hunt for
Gold with “Papamoa’s Got Talent” event
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Finance, Audit and Risk Committee
Meeting Agenda
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25 February
2020
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Finance, Audit and Risk Committee Meeting
Agenda
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25 February
2020
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Finance, Audit
and Risk Committee Meeting Agenda
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25 February
2020
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Finance, Audit and Risk Committee
Meeting Agenda
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25 February
2020
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Finance, Audit and Risk Committee
Meeting Agenda
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25 February
2020
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Vision: No
changes to this
Core Purpose
/ Focus areas of Mainstreet Business Plan: No change
Membership
overview: Approx. 120 Businesses
Summary of
highlights:
· Our biggest ever Cherry Blossom
Festival
· Kids Book Reading day celebrating our Yarn
Bombing installations
· The TCC vote to retain the Begging
Bylaw
· Gaining substantial support from our
members regarding the additional work conducted around addressing the begging
bylaw and associated issues
Key Activity and Achievements (previous
6 months):
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Activity
Area: Events
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Activity
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Explanation
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Results /
Status / Outcome
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The Yarn
Bombed tree installations that ran from late June until end of August
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Attracted
visitors from around the BOP and wider area. The standard of trees yarn bombed,
raised yet again this year
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Impossible to
gauge visitor numbers for this activity however I am aware of coaches
travelling from Katikati, Matamata, Whakatane. The voting for trees and
Charites has proven popular with many locals and visitors and this year we
held both online voting on the dedicated YB face book page and manual voting
throughout 8 locations in the village. A total of $2000 was secured in
sponsorship and passed onto the local charities
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Midwinter
Madness Promotion, July - Aug
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Shop n Win
promo to encourage shoppers to spend in the village and be in to win one of 3
prizes of $2500, $1500 & $1000 Greerton dollars
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51 Greerton
Village businesses participated, all paying $100 to be part of promotion
which then formed the prize pool of $5000. Aprox. Same amount of entries as
last year. It was a new initiative to split the prize 3 ways this year
instead of winner takes all – way more popular with the retailers and
other business owners
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Annual Cherry
Blossom Festival and Street Car Show
September
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Annual
Festival to celebrate our wonderful flowering Cherry Trees and bring the
whole community together for a fun, family day featuring a Car show, School
Fair, stalls and entertainment
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This year our
biggest ever for car registrations – 126 – and crowd number
estimated at 5,500 plus during the day. The Greerton Village School Fair held
in conjunction as a fund raiser also the biggest ever with over $10,000
raised on the day
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Giant
Christmas Hamper Promotion
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Shop n Win
Christmas promotion
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Now in its 4th
year this promotion remained popular by attracting just over half of total
businesses in Greerton Village. Again, split the prize 3 ways this time which
is clearly a good move and something we will try and retain with our promos
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Christmas
Carols around the Tree
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After last
year’s big show featuring the Topp Twins, this year we needed to revert
to a more local show – will look at celebrity show for 2020
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A crowd of
around 400 gathered on a warm Summers evening to be entertained by Tauranga
Brass band, Inachord choral group, new choir Tauranga Everybody Sings and 2
sets performed by Green Park School students. In addition Santa was kept busy
all evening as was the face painting fairy and the whole show pulled together
by our local MC . Excellent response to this free event by the community
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Activity
Area: Initiatives & Marketing
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Activity
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Purpose
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Results /
Status / Outcome
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Greerton
Village Website
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Ongoing
regular updates. All new businesses added to the Business Directory. I
believe that less people are looking at web site and preferring face book
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Reasonable
reaction to Events promoted on web site and receive enquiries re. Greerton
Village businesses via the Business Directory
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Sun Media
Partnership, Bi Monthly feature + additional space for events and promotions
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To engage
with the public regarding upcoming promotions and events
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Continue to
receive very positive and regular feedback to our feature pages. Sun Media
continue to support us with addition videos of events and sponsorship of
Window Dressing competitions. In November we tried a new initiative with a
full page featuring 16 GV businesses, each with their own small adverts. This
proved successful for some and not so for others. Sufficient that we will run
again
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NZME Radio
across 4 x local stations
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Used to
promote events and promotions to the public
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Hard to gauge
sometimes but do hear feedback from those who are regular radio listeners. In
addition to advertising campaigns, also receive plenty of additional liners
and mentions at no cost
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Greerton
Village Map
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The newly
printed map was distributed to local I Sites as well as sent to Matamata I
site who usually have 3 bundles a year sent to them – promoted heavily
there as a quirky village to visit from Op. Shops and Yarn Bombing
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The new revamped
map has continued to be popular with retailers requesting more during the
year. Contains colourful images of Greerton Village and its events as well as
promoting businesses that have bought space. Real Creative sell and produce
the map for us
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Town Signage
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Utilised for
promotion of events and promotions
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Always
receive feedback from public when the signs go up or are changed so has a
place in the marketing platforms
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Social Media
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GV Public
face book page used to promote all events and promotions in Greerton Village
as well as advise public of new Businesses and Retailers promotion
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Page likes
increased slightly from 3.1k to 3.2K on public page.
This platform
is of course important however our members have made clear that they embrace
one on one contact with Mainstreet in preference to face book communications
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Random Acts
of Kindness
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This was an
initiative that was born out of the Lets Grow Greerton Group – reported
on later in this report. The idea is for one business each week throughout
the year, to get out in the street, offer members of the public either a free
gift or special prize of some sort, take a photo and post to our public page
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We have
continued this promotion right up until Christmas 2019 and the face book
posts have created many positive comments. We will kick off again in February
2020
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Greerton
Village Branded Bags
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Designed to
promote Greerton with hessian bags – to alleviate the plastics issue
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Most
retailers have chosen to use as promotional tools giving away with large
purchases and GVCA have used to promote #greertonhasheart by using a prizes
and random giveaways
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Activity
Area: Member
Communication
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Activity
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Purpose
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Results /
Status / Outcome
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Lets Grow
Greerton
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Initiated in
March 2019 to advise activities, meetings, items of importance, promotions
and events to our members only
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Following on
from 2 meetings earlier in the year, we have continued with this initiative
via our closed Facebook page for GV businesses and personal contact from our
committee members and manager
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GVCA
Mailchimp newsletters
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Again, to
advise, inform, celebrate both to our members database and our public
database
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As you would
expect, some newsletters generate more interest and comment than others but
certainly our best way of communication to all members
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Greerton
Business Group Closed Face Book page
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To inform and
communicate within our business community without external input from members
of the public
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Membership of
this group has now grown to 52 – just under half of all businesses in Greerton
and is well used open and frank exchange of views and information. As well
this has provided a platform for retailers to support each other
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BA5 Network
evenings
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To encourage
Business owners to host and showcase their business to fellow business owners
in GV
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The last two
BA5’s of the year held in November and December drew good numbers in
November, lower in December (many clashes same night) and we will be starting
again in February 2020
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Personal
visits to business owners from Mainstreet Manager and Committee members
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Mainly for
committee members to get out and meet and engage with business owners
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Business
owners have appreciated being called on by committee members as a change form
always the Mainstreet Manager
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Meeting with
GVCA Business owners and TCC Regarding Begging/Rough Sleeping Bylaw
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To give an
opportunity for Business owners to attend a meeting, ask
questions and hear about possible solutions
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Good
attendance for GV meeting. Most not that happy still but willing to hear of
possible outcomes
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Key issues:
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Issue
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Explanation
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Status
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Greerton
Village Development work for safety in GV – carried over from last
report
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We have
received no further advice from TCC around this issue so really not sure of
whats in the picture from last we heard was that TCC had tasked staff to look
at possible solutions
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Since I have
received no complaints at all this 6 month period, I believe that the
majority of business owners have come to accept the situation as is (which is
what was predicted) and indeed would now be reluctant to have further
remedial work resulting in more upheaval – ie moving traffic signals
etc., temporary road closures and loss of parks. Indeed if TCC do have plans
in the pipeline for any changes to the current set up, we would really want
to have in-depth consultation with businesses prior to any decisions that
will further affect their livelihood
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Rough
Sleeping and Begging Bylaw – carried over from numerous reports
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Relates to
historical issue with people begging in Greerton Village and introduction of
Bylaw in April 2019
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At the time
of preparing this report, we are once again holding our breath in Greerton
Village – very worried about the outcome of upcoming hearing on this
subject in January and deliberations in February. Having TCC vote in favour
of the bylaw remaining in August last year, only to have a new council vote
to go out for consultation again – to prevent a possible legal
challenge against the current wording and so it goes on. Since 1 April 2019
the presence of people begging in the street has dramatically reduced with
just the occasional one or two and Greerton Village has regained its friendly
vibe and shoppers have returned in numbers with no negative comments received
either in person or through social media. Long may it last is our view
– please consider the health and well being of the 100+ business owners
in Greerton Village – as well as the people begging
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The tidying
up of Greerton Village
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We were told
by TCC staff, that following the completion of the safety improvements in GV,
that a “spruce up” would be conducted
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I will copy
and paste here the comments from our report from 30 June 2019
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Following a walkabout with Callum and Richard from TCC – we
are waiting to see a schedule of works for the jobs that we identified. We
understand that some work will not take place until Spring – if it
involves paint, however we would really like to get the schedule and see
the timelines for removing the old bollards and poles where possible and
painting programme on those that have to stay. As the business owners are
making an effort it would be very helpful to be able to report back with
firm schedules
It is
disappointing that little of this work has been carried out – despite
Spring coming and going and already half way through Summer. To the best of
my knowledge work that was agreed to: Repainting the disabled car park
pavement sign next to Greerton Hall – completed. Painting white marks
on steps leading from hall to Cameron road shops – completed –
but already almost gone as needed 2 coats of paint. Straightening up of
various poles – completed.
Plastic
fence in Cameron Road removed – completed and car park painting
completed
The repair,
cleaning and revarnish (where required) of all seating in Greerton Village.
The 3 seats around the hall were cleaned – they come under reserves
– however the rest of the village seats remain very dirty, some
broken and all needing a good clean and many varnishing. We had requested
the very old damaged bollards and poles to be removed and told too
expensive to remove but a quote would be sought for repainting – all
in July last year, nothing seen since. Some poles removed, rest remain. I
have regularly requested updates and a contractors timeline (as promised)
to complete these works, but so far none received
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Future
activities (coming 6 months):
Now that we
have that good vibe back – we feel ready and able to move forward with
new ideas and initiatives for the coming 6 months.
Out of our Lets
Grow Greerton meetings, although virtually all are in favour of retaining our
iconic events such as Cherry Blossom Festival and Yarn Bombing, there was a
strong call also for smaller initiatives more frequently and with that, the
following has been developed:
· January – Random Acts continue
with a Stilt Walkers in the village handing our lollies and branded
balloons
· February – hundreds of chocolate
hearts will be distributed by our Valentine entertainer and Greerton Lions
· March A fun day to celebrate St
Patrick’s Day. In the village square, Irish band to perform, scavenger
hunt, face painting, Circus in a Flash and games for the kids
· April – Easter Egg Hunt
· May and June – yet to be decided
after feedback from January to March events
Financials:
A copy of our
YTD Budget Vs Actual to 31 December 2019 and full financials for year end 30
June 2019 are attached with this report. We are tracking well with accounts of
$10,200 payable in January 2020.
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Finance, Audit and Risk Committee
Meeting Agenda
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25 February
2020
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Finance, Audit and Risk Committee Meeting
Agenda
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25 February
2020
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This section will only need to be
updated when there are changes to report on
Vision:
Core Purpose
/ Focus areas of Mainstreet Business Plan:
Membership
overview:
Summary of
highlights:
Selecting 3
– 6 activities to highlight, also include anything else that should be
highlighted to Council
Key Activity
and Achievements (previous 6 months):
Additional
tables can be added if needed
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Activity
Area: for example: events
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Activity
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Explanation
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Results /
Status / Outcome
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28 July
Polar Plunge
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Community
engagement to celebrate mid winter in the sunshine capital!
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Around 500
hardy souls braved the surf at Papamoa and enjoyed a warming meal at
retailers within Papamoa.
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Activity
Area: for example: initiatives, marketing
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Activity
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Purpose
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Results /
Status / Outcome
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29
September Pedal Papamoa
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Highlight
the beautiful waterways around Papamoa and encourage cyclists to get out and
about
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Around 600
cyclists enjoyed a magnificent day out with refresher stops, quizzes and a
hearty breakfast along the waterways of Papamoa.
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Activity
Area: for example: member communication
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Activity
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Purpose
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Results /
Status / Outcome
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24
November Santa Parade
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Engage the
local Papamoa Community into a celebration of “Kiwiana” and all
thing “Papamoa”!
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A record
36 floats took part and record crowds attended (approximately15,000) what was
acknowledged as the “best Papamoa Santa Parade ever”.
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Key issues:
Are there
any particular current issues that need to be highlighted to Council? What is
happening to resolve these issues, if the issues relate to Council activity
what is the next step? On a rolling basis close issues that were raised in
previous reports.
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Issue
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Explanation
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Status
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Review all
events to ensure relevance to the local community.
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Events
that do not change to meet local objectives need to be reviewed.
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Currently
reviewing the “Hunt for Gold” activity from March 2019 and
looking to step it up with a “Has Papamoa got talent”
competition.
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Future
activities (coming 6 months):
More
community engagement, roll out new activity and engage with stakeholders…
Financials:
On budget
and looking to maximise returns to stakeholders by delivering high
participation events.
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Finance, Audit and Risk Committee
Meeting Agenda
|
25 February
2020
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Finance, Audit
and Risk Committee Meeting Agenda
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25 February
2020
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7.2 Financial
and Non-Financial Monitoring Report: Period ended 31 December 2019
File Number: A11142830
Author: Kathryn
Sharplin, Manager: Finance
Authoriser: Christine Jones, General Manager: Strategy & Growth
Purpose of the
Report
1. The
purpose of this report is to inform Council and the public of our financial and
service level performance result for the first six months of the financial year
2019/20 and provide an overview of resident perceptions.
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Recommendations
That the Finance, Audit and Risk
Committee:
(a) Receives
Report Financial and Non-Financial Monitoring Report: Period ended 31 December
2019.
(b) Approves an
overspend of $375,000 for the Durham Street Streetscape project
(c) Approves an
overspend of $194,000 for Te Papa o Ngā Manu Porotaktaka.
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Executive
Summary
2. The
full year financial projection at this stage is for an operating result
slightly favourable to budget. Net debt at year end is projected to be close
to budget ($540m). The main risk to this projection is timing of capital spend
and timing of payments on weathertight claims.
a) Summary Statement of Comprehensive Revenue and
Expense (Attachment 1) shows both operating expenditure and revenue behind
budget. Revised full year forecasts have been presented showing that the full
year forecast for net operating deficit is $15.6m, $1.3m favourable to budget
with interest rate savings accounting for $1m favourable result.
b) The Treasury Report (Attachment 1) shows total net debt to 31 December 2019 of $487m
with the full year forecast close to budget at $540m.
c) The TCC Capital expenditure table
(Attachment 2) identifies capital project budgets for the year by significant
projects and other categories of expenditure. At this stage we are projecting
capital delivery to be $4m below budget, noting that the budget includes an
adjustment for non- delivery of $60m.
d) Financial Overspends table (Attachment 2)
shows the projects forecast to be overspent this financial year, which
currently total $7m. The main project overspend is the multi-year Te
Maunga wastewater plant upgrade, which has a projected overspend to budget for
the portion of work carried out this year of $4m. This overspend was approved
by Council in August 2019.
3. Attachment
3 presents how Council and the community are tracking towards achieving
Council’s non-financial performance measures and levels of service.
4. Of
the 151 non-financial performance measures, 122 have been measured and reported
on. 88 measures (58%) are on track with 34 measures (23%) off track and 29 measures
(19%) yet to be measured.
Background
5. This
report is for monitoring and reporting purposes showing Council’s
financial and non-financial performance in delivering services to the community
6. In
a long-term plan (LTP), the level of service that the council will deliver is
agreed upon by the council in consultation with the public.
7. The
Local Government Act 2002 stipulates that local authorities are required to
report on how well they are performing in delivering these levels of service to
their communities as measured by the non-financial performance Indicators.
8. In
the 2018-28 Long-term Plan there were 148 KPIs that were agreed upon
(subsequent measures have also been added to increase total to 151 via this
committee, no levels of services have been changed), 23 of which are mandatory
measures as per section 261B of the Local Government Act.
9. The
budget to achieve the agreed level of service is set in the LTP. Rates
are set based on the agreed budget.
Strategic Context
10. Maintaining
expenditure within budget ensures delivery of services in a financially
sustainable way.
11. Monitoring
non-financial performance is a key function of the committee.
DISCUSSION
Part 1: Financial Performance
12. Attachments
to this report provide a summary of Council’s financial performance for
the year to date. The content of this report includes:
(a) A summary of
revenue and expenditure year to date with revised full year projections
presented as a Statement of Comprehensive Revenue and Expense (Attachment 1).
(b) The Treasury
report which shows borrowing year to date and full year projections, the
average cost of funds and money market investments benchmarked to average
return (Attachment 1).
(c) The Capital
Programme spend to date and full year projections, also identifying key
projects (Attachment 2).
13. The Statement
of Comprehensive Revenue and Expenditure shows the operating and capital
revenue and expenses in a format consistent with the Annual Report. It shows
the year to date results for revenue and expenditure and provides a full year
forecast.
14. Operating
revenue is projected to be unfavourable to budget for the year with building
services revenue tracking below budget due to lower building consent levels and
forestry harvesting revenue (from the Oropi water catchment) deferred due to
low prices and community consultation timeframes.
15. Operating
costs variances are favourable primarily due to lower depreciation on water
infrastructure arising from last year’s asset revaluation which extended
the useful life of some of our plant. Personnel expenses are $1.8m behind
budget reflecting vacant positions across the business including Building
Services and Environmental Planning. Due to these vacancies, contractor costs
are running over budget.
16. The forecast
for provisions expense is currently under review. Any update in the risk
associated with weathertight homes claims would be included in the March
quarter forecast.
17. The Treasury
Report (included as part of Attachment 1) shows total net debt to 31 December of
$488m with the full year forecast close to budget at $540m. The final
debt position will be influenced by the amount and timing of capital costs and
other payments and revenues such as development contributions.
18. TCC Capital
Expenditure (Attachment 2) summarises expenditure on the capital programme,
identifying significant capital projects. The capital programme is tracking
behind budget by $26m year to date which is 32% spent with 50% of the year
gone. Project delivery usually increases in later months so at this stage
our forecast debt position is based on expenditure to budget (Note the capital
budget at $203m includes a $60m underspend assumption).
19. The Capital
Overspends table (Attachment 2) identifies project overspends for the year
totalling $7m. The largest of these relates to Te Maunga Wastewater
Treatment plant. This $4m overspend was approved by Council in August
2019.
Part 2: Capital overspends for approval
20. Officers are
requesting overspend approval for two capital projects: Durham Street
Streetscape and Te Papa o
Ngā Manu Porotakataka.
21. An amount of $375,000
has been requested to fund additional works to complete the Durham Street
project, in addition to the overspend approved under DC64 in May 2019. These
additional works were as a result of additional unforeseen ground conditions,
service relocations, extensions of time for the contractor, consultancy
services and building consents. These items were highlighted in DC64
however the actual costs have exceeded the contingency estimated for that
report.
22. An amount of
$194,000 has been requested for Te Papa o Ngā Manu Porotakataka, in
addition to that approved under DC282. This overspend was driven by extra
professional services fees resulting from the necessity for consultants to
complete designs for the toilet block amendments as well as extra design work
around issues on site (both landscape and civil). In addition, in order to
complete the project before Christmas there was increased time on site required
from engineers on management, survey and quality assurance activities.
Part 3: Non-Financial Performance
Measures
23. Attachment 3
presents how Council and the community are tracking towards achieving
Council’s non-financial performance measures and levels of service.
24. Of the 151
non-financial performance measures (four measures were added in as part
of the recommendation when this was last reported in November 2019), 122 have been measured and reported on. Data is not yet available
for 29 measures.
25. Of those that
have been measured, 88 measures (58%) are on track with 34 measures (23%) off
track.
26. Where data is
not available, the majority relate to annual measures which are only surveyed
at one point through the year or to measures that have no current method of
assessment.
Perceptions Monitor
27. The Annual
Residents’ Survey supports non-financial reporting by measuring the perceptions
of residents regarding various aspects of services that Council provides.
28. Each wave's mail out quotas
are applied according to age, gender and ward, to ensure that a representative
sample of Tauranga City’s population is achieved. The data is weighted to
account for variances in the achieved quotas and to ensure that the sample
reflects the population profile achieved.
29. The overall results have an
anticipated margin of error of +/- 4.6% at the 95% confidence level. Scores for
2018/19 and 2019/20 reporting periods exclude 'Don't know' responses.
30. The results for 2019/20 wave 1
are interim and based on the sample of n=200. Data collection has taken place
between 04 Nov and 09 Dec 2019.
31. A summary of
the highlights of the first wave are attached at Attachment 4. The summary
helps provide an insight into how different elements of Council’s
core service deliverables, reputation and the perception of value for money
contribute to respondents’ perception of Council’s overall
performance.
32. The
level of satisfaction (reputation measure) with Tauranga City Council in
general has decreased from 66% in 2018/19 to 48% year-to-date. Reputation
measures the community’s perception of four key areas – leadership,
acting honesty/fairly, financial management and quality of services/facilities.
These results were captured during the period from mid-November to mid-December
2019. The timing suggests that there may have been uncertainty during this
post-election period which influenced results. Furthermore, it has historically
been common for the first wave of results to be lower than the subsequent waves
of results. There are three waves before we receive the final result, with wave
1 having a small sample size.
33. Perceptions
of each of the three drivers of overall performance have decreased:
a. The
perception of value for money, which is the major driver of the overall
perception score, has dropped from 50% to 42% year to date. This has been
driven by a decline in the perception that annual property rates are fair and
reasonable.
b. The
second biggest driver, overall service and facilities, decreased from 72% to
64% year-to-date.
c. Reputation
has dropped from 46% in 2018/19 to 33% year-to-date.
34. The next wave will be due to
be reported in May with the Q3 non-financial performance.
OPTIONS
35. There are no options associated with this report. The report is
provided as information only.
Significance
36. Under the
Significance and Engagement Policy 2014, the decision to receive this report is
of low significance. The decisions to approve the capital overspends are also
of low significance as the size of the overspends do not reach a higher
threshold.
Next Steps
37. This report
ensures monitoring of Council performance to ensure compliance with
Council’s budgets, policies and delegations.
Attachments
1. Statement
of Comprehensive Revenue and Expense - A11175587 ⇩ 
2. Capital
Programme - A11175570 ⇩ 
3. Non-Financial
Performance Measures - Q2 2019 - A11199173 ⇩ 
4. Tauranga
City Council Dashboard 2020 Wave 1 Summary - A11166820 ⇩ 
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Finance, Audit
and Risk Committee Meeting Agenda
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25 February
2020
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Finance, Audit and Risk Committee
Meeting Agenda
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25 February
2020
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Finance, Audit and Risk Committee
Meeting Agenda
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25 February
2020
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Finance, Audit and Risk Committee
Meeting Agenda
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25 February
2020
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7.3 Quarter
2 - LGOIMA and Mayor & Councillor Requests
File
Number: A11208325
Author: Kath
Norris, Team Leader: Democracy Services
Authoriser: Susan
Jamieson, General Manager: People & Engagement
Purpose of the Report:
1. The purpose of the report is to update
the committee on Local Government Official Information and Meetings Act 1987
(LGOIMA) requests as well as the Mayor and councillor requests over the second
quarter (Quarter 2) from 1 September 2019 to 31 December 2019.
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Recommendations
That the
Finance, Audit and Risk Committee receives the report Quarter 2 Local
Government Official Information and Meetings Act 1987 and Mayor and Councillors
requests.
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LGOIMA Requests
2. A
total of 69 requests were received in Q2 (67 LGOIMA, one Privacy Act, one
both), compared with 101 information requests received in Q1. This is a
decrease of 32% from the previous quarter.
Q1 figures were higher due in part to multiple requests received for the
release of the Colgan Report.
3. There
are five requests still to be finalised for the quarter.
4. Seven
requests made in Q2 were partially withheld and six requests were refused. Two
requests were transferred to other government agencies.
5. Information
requests are broken down into the following types: individuals (61%),
organisations (23%) and the media (16%).
6. Top
three allocations per business group were People and Engagement (31.88%),
Corporate Services (20.29%) and Regulatory and Compliance (20.29%).
7. This
is further broken down to the business units: Democracy Services (18%), Spaces
and Places (14%) and Legal and Commercial (11%). The remaining requests were
allocated to other areas across the organisation.
8. Six
requesters made multiple requests (two or more), with two of these requesters
making three or more requests each. One requester made four requests, these
four were all Bella Vista related. Multiple requests comprised 22% of the total
requests made in Q2.
9. There
is one current complaint to the Office of the Privacy Commissioner lodged by an
ex staff member that is being investigated and responded to by Legal Services.
10. Only
one request in the quarter (LGOIMA) had the response time extended, compared
with seven extensions in Q1.
11. 99%
of Q2 requests were responded to within the statutory timeframes, compared with
97% in Q1. One response this quarter did not meet the deadline.
12. We
recorded an estimated total of 215 hours of staff time spent responding to information
requests that were due in Q2, which equates to $16,313.40.
13. The
Office of the Ombudsman has commenced its audit process with a number of
surveys for Mayor and Councillors, the public, and staff. An agency
questionnaire has been completed and we are now responding to follow up
questions. Staff from the Ombudsman’s Office will be on site at Willow St
from 17-21 February 2020 to conduct meetings with the staff they wish to meet
with. These meetings have been scheduled by the Office itself.
14. The
Office of the Ombudsman has provided their last six monthly report for the
period 1 July to 31 December 2019 on complaints completed in regards to the
Council’s LGOIMA responses. This information will be published on their
website 4 March 2020. They completed six complaints, two resolved
without investigation, two required no investigation, one investigation
discontinued, and one investigation finalised. Following the Ombudsman’s
initial inquiries, we amended two decisions and in one case rectified an
omission.
Mayor
and Councillor Queries Q2
15. Democracy
Services received 77 Mayor and Councillor queries. There are no outstanding Q2
queries.
16. This
process is improving each week as everyone becomes familiar with it and there
are less requests going directly to General Managers (GMs) or staff that are
not logged with the Democracy Services team first. GMs will follow up by
providing Democracy Services the final response for our records. Gentle
reminders are sent to those that do not use the democracy.services@tauranga.govt.nz
to log their request.
17. The
two most significant contributors were the Mayor (30%) and Cr. Morris (26%).
18. Community
Services (36%) received most queries, followed by Infrastructure at (22%) and
Strategy and Growth (15%), with the balance spread across the remaining
business groups.
19. This
is further broken down to the business units: Spaces and Places (34%), Strategy
and Corporate Planning (15%) and Transportation (14%). The remaining requests
were allocated to other areas across the organisation.
20. We
are continually reviewing and refining our processes and reporting. In the next
quarter we will focus on adding more to the reporting by capturing the key
themes.
Q2 Official information requests
(LGOIMA, Privacy Act requests) - Graphs
Q2 Mayor and Councillor query graphs
Attachments
Nil
9 Public
Excluded Session
RESOLUTION TO
EXCLUDE THE PUBLIC
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Recommendations
That the public be excluded from the following parts of
the proceedings of this meeting.
The general subject matter 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 of the
Local Government Official Information and Meetings Act 1987 for the passing
of this resolution are as follows:
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General subject of each matter to be considered
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Reason for passing this resolution in relation to
each matter
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Ground(s) under section 48 for the passing of this
resolution
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9.1 - Litigation Report
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s7(2)(a) - the withholding of the information is
necessary to protect the privacy of natural persons, including that of
deceased natural persons
s7(2)(g) - the withholding of the information is
necessary to maintain legal professional privilege
s7(2)(i) - the withholding of the information is
necessary to enable Council to carry on, without prejudice or disadvantage,
negotiations (including commercial and industrial negotiations)
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s48(1)(a)(i) - 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 would exist
under section 6 or section 7
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9.2 - Bella Vista Update - Building
Matters
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s7(2)(a) - the withholding of the information is
necessary to protect the privacy of natural persons, including that of
deceased natural persons
s7(2)(g) - the withholding of the information is
necessary to maintain legal professional privilege
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s48(1)(a)(i) - 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 would exist
under section 6 or section 7
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9.3 - Corporate Risk Register -
Quarterly Update
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s7(2)(b)(i) - the withholding of the information
is necessary to protect information where the making available of the
information would disclose a trade secret
s7(2)(b)(ii) - the withholding of the information
is necessary to protect information where the making available of the
information would be likely unreasonably to prejudice the commercial
position of the person who supplied or who is the subject of the
information
s7(2)(h) - the withholding of the information is
necessary to enable Council to carry out, without prejudice or
disadvantage, commercial activities
s7(2)(i) - the withholding of the information is
necessary to enable Council to carry on, without prejudice or disadvantage,
negotiations (including commercial and industrial negotiations)
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s48(1)(a)(i) - 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 would exist
under section 6 or section 7
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9.4 - Internal Audit Programme for
2019/20 to 2020/21
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s6(b) - the making available of the information
would be likely to endanger the safety of any person
s7(2)(a) - the withholding of the information is
necessary to protect the privacy of natural persons, including that of
deceased natural persons
s7(2)(b)(i) - the withholding of the information
is necessary to protect information where the making available of the
information would disclose a trade secret
s7(2)(d) - the withholding of the information is
necessary to avoid prejudice to measures protecting the health or safety of
members of the public
s7(2)(g) - the withholding of the information is
necessary to maintain legal professional privilege
s7(2)(j) - the withholding of the information is
necessary to prevent the disclosure or use of official information for
improper gain or improper advantage
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s48(1)(a)(i) - 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 would exist
under section 6 or section 7
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9.5 - Harington Street Transport Hub -
Project Update
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s7(2)(b)(ii) - the withholding of the information
is necessary to protect information where the making available of the
information would be likely unreasonably to prejudice the commercial
position of the person who supplied or who is the subject of the
information
s7(2)(g) - the withholding of the information is
necessary to maintain legal professional privilege
s7(2)(h) - the withholding of the information is
necessary to enable Council to carry out, without prejudice or
disadvantage, commercial activities
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s48(1)(a)(i) - 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 would exist
under section 6 or section 7
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