AGENDA

 

Finance, Audit and Risk Committee Meeting

Tuesday, 22 September 2020

I hereby give notice that a Finance, Audit and Risk Committee Meeting will be held on:

Date:

Tuesday, 22 September 2020

Time:

9.30am

Location:

Tauranga City Council

Council Chambers

91 Willow Street

Tauranga

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.

Marty Grenfell

Chief Executive

 


Terms of reference – Finance, Audit & Risk Committee

 

 

 

 

Common responsibilities and delegations

 

The following common responsibilities and delegations apply to all standing committees.

 

Responsibilities of standing committees

·         Establish priorities and guidance on programmes relevant to the Role and Scope of the committee.

·         Provide guidance to staff on the development of investment options to inform the Long Term Plan and Annual Plans.

·         Report to Council on matters of strategic importance.

·         Recommend to Council investment priorities and lead Council considerations of relevant strategic and high significance decisions.

·         Provide guidance to staff on levels of service relevant to the role and scope of the committee. 

·         Establish and participate in relevant task forces and working groups.

·         Engage in dialogue with strategic partners, such as Smart Growth partners, to ensure alignment of objectives and implementation of agreed actions.

 

 

Delegations to standing committees

·         To make recommendations to Council outside of the delegated responsibility as agreed by Council relevant to the role and scope of the Committee.

·         To make all decisions necessary to fulfil the role and scope of the Committee subject to the delegations/limitations imposed.

·         To develop and consider, receive submissions on and adopt strategies, policies and plans relevant to the role and scope of the committee, except where these may only be legally adopted by Council.

·         To consider, consult on, hear and make determinations on relevant strategies, policies and bylaws (including adoption of drafts), making recommendations to Council on adoption, rescinding and modification, where these must be legally adopted by Council,

·         To approve relevant submissions to central government, its agencies and other bodies beyond any specific delegation to any particular committee.

·         To appoint a non-voting Tangata Whenua representative to the Committee.

·         Engage external parties as required.

 


 

Terms of reference – Finance, Audit & Risk Committee

 

 

 

Membership

Chairperson

Mr Bruce Robertson

Deputy chairperson

Cr John Robson

Members

Mayor Tenby Powell

Cr Jako Abrie

Cr Larry Baldock

Cr Kelvin Clout

Cr Bill Grainger

Cr Andrew Hollis

Cr Heidi Hughes

Cr Dawn Kiddie

Cr Steve Morris

Cr Tina Salisbury

 

Dr Wayne Beilby – Tangata Whenua representative

 

A maximum of two external appointments may be made by Council on recommendation from the Committee

Quorum

Half of the members physically present, where the number of members (including vacancies) is even; and a majority of the members physically present, where the number of members (including vacancies) is odd.

Meeting frequency

Six weekly

Role

·         To ensure that Council is delivering on agreed outcomes.

·         To ensure that Council is managing its finances in an appropriate manner.

·         To ensure that Council is managing risk in an appropriate manner.

Scope

·         Monitor financial and non-financial performance against the approved Long Term Plan and Annual Plan (Note: Council cannot delegate to a Committee the adoption of the Long Term Plan and Annual Plan).

·         Oversee the development of the council’s Annual Report.

·         Oversee the development of financial and treasury management strategies and policies.

·         Consider and approve external audit arrangements and receiving Audit reports.

·         Consider the outcome of internal and external audit reviews.

·         Advise Council on matters of finance and provide objective advice and recommendations for its consideration.

·         Advise Council on matters of risk and provide objective advice and recommendations for its consideration.

·         Consider matters which are related to quality assurance and internal controls in council and ensure the financial management practices and processes comply with the Local Government Act 2002, other relevant legislation and Council’s own policies.

·         Consider, monitor and recommend (where appropriate) in respect to Council’s financial interest in CCOs.

·         Consider all matters regarding the Local Government Funding Agency (LGFA).

·         Monitor key activities, projects and services (without operational interference in the services) in order to better inform the members and the community about key Council activities and issues that arise in the operational arm of the council.

Power to act

·         To make all decisions necessary to fulfil the role and scope of the Committee subject to the limitations imposed.

·         To appoint a non-voting Tangata Whenua representative to the Committee.

·         To establish working parties and forums as required.

·         For the avoidance of doubt, this Committee has not been delegated the power to:

o   make a rate;

o   borrow money, or purchase or dispose of assets, other than in accordance with the Long Term Plan.

Power to recommend

·         To Council and/or any standing committee as it deems appropriate.

 

 


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 

Order Of Business

1          Apologies. 9

2          Public Forum.. 9

3          Acceptance of Late Items. 9

4          Confidential Business to be Transferred into the Open. 9

5          Change to Order of Business. 9

6          Confirmation of Minutes. 10

6.1            Minutes of the Finance, Audit and Risk Committee Meeting held on 12 May 2020. 10

7          Declaration of Conflicts of Interest 18

8          Deputations, Presentations, Petitions. 19

8.1            Presentation from Bay of Plenty Regional Council and Quayside Holdings Limited. 19

9          Business. 20

9.1            Annual Residents Survey 2020. 20

9.2            CCO Draft and Final Annual Reports for 2019/2020. 116

9.3            Tauranga City Council Draft Annual Report 411

9.4            Funding and Financing for the Long Term Plan. 416

9.5            Quarter 4 Local Government Official Information Requests and Mayor and Councillors' Requests. 422

10       Discussion of Late Items. 429

11       Public Excluded Session. 430

11.1          Public Excluded Minutes of the Finance, Audit and Risk Committee Meeting held on 12 May 2020. 430

11.2          Litigation Report 430

11.3          Corporate Risk Register - Quarterly Update. 431

11.4          Quarterly Cyber Security Report - Q4 2020. 431

 

 


1            Apologies

2            Public Forum 

3            Acceptance of Late Items

4            Confidential Business to be Transferred into the Open

5            Change to Order of Business


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 

6            Confirmation of Minutes

6.1         Minutes of the Finance, Audit and Risk Committee Meeting held on 12 May 2020

File Number:           A11849193

Author:                    Robyn Garrett, Team Leader: Committee Support

Authoriser:             Robyn Garrett, Team Leader: Committee Support

 

Recommendations

(a)     That the Minutes of the Finance, Audit and Risk Committee Meeting held on 12 May 2020 be confirmed as a true and correct record.

 

 

 

Attachments

1.       Minutes of the Finance, Audit and Risk Committee Meeting held on 12 May 2020 

  


UNCONFIRMEDFinance, Audit and Risk Committee Meeting Minutes

12 May 2020

 

 

 

MINUTES

Finance, Audit and Risk Committee Meeting

Tuesday, 12 May 2020

 


Order of Business

1          Apologies. 3

2          Public Forum.. 3

3          Acceptance of Late Items. 3

4          Confidential Business to be Transferred into the Open. 3

5          Change to Order of Business. 3

6          Declaration of Conflicts of Interest 3

7          Business. 3

7.1            Financial and Non-Financial Monitoring Report: Period ended 31 March 2020. 3

7.2            Financial Update - COVID-19. 4

8          Discussion of Late Items. 6

9          Public Excluded Session. 6

9.1            COVID-19 Pandemic - Risk Register 6

9.2            Litigation Report 7

9.3            Organisational change - Bay Venues Limited. 7

 

 
MINUTES OF Tauranga City Council
Finance, Audit and Risk Committee Meeting
HELD AT THE Tauranga City Council, By video conference
ON Tuesday, 12 May 2020 AT 9am

 

PRESENT:              Mr Bruce Robertson, Cr Tina Salisbury, Mayor Tenby Powell, Cr Jako Abrie, Cr Larry Baldock, Cr Kelvin Clout, Cr Bill Grainger, Cr Andrew Hollis, Cr Heidi Hughes, Cr Dawn Kiddie, Cr Steve Morris, Cr John Robson

IN ATTENDANCE: Marty Grenfell (Chief Executive), Paul Davidson (General Manager: Corporate Services), Barbara Dempsey (General Manager: Regulatory & Compliance), Susan Jamieson (General Manager: People & Engagement), Christine Jones (General Manager: Strategy & Growth), Nic Johansson (General Manager: Infrastructure), Gareth Wallis (General Manager: Community Services), Kathryn Sharplin (Manager: Finance), Mohan de Mel (Treasurer); Coral Hair (Manager: Democracy Services), Jenny Teeuwen (Committee Advisor), Raj Naidu (Committee Advisor), Robyn Garrett (Team Leader: Committee Support).

 

1            Apologies

Cr Grainger advised the meeting of his possible early departure.

2            Public Forum 

Nil.

3            Acceptance of Late Items

Nil.

4            Confidential Business to be Transferred into the Open

Nil.

5            Change to Order of Business

Nil.

6            Declaration of Conflicts of Interest

Nil

7            Business

7.1         Financial and Non-Financial Monitoring Report: Period ended 31 March 2020

Staff          Kathryn Sharplin, Manager: Finance

 

Key points

·         The financial result for Q3 had worsened due to the impact of COVID-19 impact, with a deficit now being forecast.  Key factor was revenue loss in activities such as the airport and parking.

·         Net debt position was lower than forecast, with a slowdown in the capital expenditure programme due to the lockdown period.

·         Non-financial indicators were also impacted by COVID-19, with a higher number now forecast to not be met.

 

In response to questions

·         Divestment of the fibre network had been examined three years ago, with the decision made to retain ownership.  Sale would not recoup capital expenditure or gain cost benefits.

·         Revenue was above average for the marine precinct although there had only been nine lifts; the lifts made had been larger and for extended periods of time, the lift charge was dependent on the size and scale of the boat involved. 

·         The perception survey had included an opportunity at the end of each section for respondents to provide free-flow comments.

·         Per capita GDP was an annual figure measured once a year in December.

·         The process of revaluation of assets and its impact on depreciation was clarified.  Every asset class was revalued over a rolling three-year cycle; this year parks assets were being revalued, three waters assets had been revalued the previous year.

 

Committee Resolution  FI4/20/1

Moved:       Cr John Robson

Seconded:  Cr Tina Salisbury

That the Finance, Audit and Risk Committee:

(a)     Receives the Report Financial and Non-Financial Monitoring Report: Period ended 31 March 2020.

Carried

 

7.2         Financial Update - COVID-19

Staff          Paul Davidson, General Manager: Corporate Services

                  Kathryn Sharplin, Manager: Finance

                  Mohan de Mel, Treasurer

 

Key points

·         Current borrowing rates were between 1% and 2.5%.

·         Forecast $40m-$77m revenue loss; optimistic would be at the more favourable end, scenario work was ongoing.

·         The Local Government Funding Authority (LGFA) had recommended a change to the debt/revenue ratio cap for the next two financial years of 300% (from 250%) with a sinking lid back down to 280%.  The change was still subject to shareholder approval; individual councils’ credit rating could be impacted.

·         Additional resolutions were proposed in relation to parking revenue to reflect moving into Alert Level 2 and free CBD parking.

 

In response to questions

·         There was limited opportunity to refinance at lower interest rates but break fees were a disincentive. The bulk of council lending was through LGFA; lending with major banks had significant break fees.  Unlikely break fees would be forgiven. 

·         Varying scenarios of different levels of borrowing and moderate rate increases would be examined, including the use of all levers available and the impact on rates of different balances between borrowing, depreciation, debt servicing costs being considered.

·         The various rating agencies were comfortable with the debt/revenue ratio proposals.  LGFA was increasing its capital base as well and central government had a good credit rating.

·         Noted the importance of understanding the consequences of this Annual Plan in a longer Long-Term Plan (LTP) perspective, with high-level modelling of the longer-term implications of council debt levels. 

·         The Department of Internal Affairs (DIA) was considered supportive of changes to the 250% ratio.  A breach of the 250% would be a reporting issue not an intervention issue.

·         Council was working with contractors on a case-by-case basis on the implications of contracts delayed or stopped by COVID-19.  No significant impact at this stage.

 

Discussion points raised

·         The impacts of free parking on city revitalisation and as an activation factor and the loss of parking revenue were discussed.

·         Noted that a longer-term parking strategy was being developed.

 

Committee Recommendation 

Moved:       Cr Larry Baldock

Seconded:  Cr Jako Abrie

That the Finance, Audit and Risk Committee:

(a)     Receives Report COVID-19 Financial Update

(b)     Notes that a formal report will be made to Council prior to a June Special General Meeting of the shareholders of the Local Government Funding Agency seeking approval to amend the net debt /total revenue foundation policy financial covenant.

          Agrees that the CE uses his delegation to:

(c)     Authorise that on-street parking be free for the first 2 weeks of alert level 2, but that Council enforces the time limits in the various parking areas to ensure carpark turnover is maintained;

(d)     Authorise that off-street parking be free for the first two hours for the first 2 weeks of alert level 2. The carparks can be used for longer periods with users paying for that additional time past the first two hours.

(e)     Authorise the General Manager: Infrastructure to extend the free parking in resolutions (c) and (d) above for a maximum of a further 2 weeks in the event that parking turnover is being maintained.

Amendment

Moved:       Cr John Robson

Seconded:  Cr Andrew Hollis

That the words “for a maximum of” be removed from (e) to read “Authorise the General Manager: Infrastructure to extend the free parking in resolutions (c) and (d) above a further 2 weeks in the event that parking turnover is being maintained.

In Favour:       Chair Bruce Robertson, Mayor Tenby Powell, Crs John Robson, Jako Abrie, Kelvin Clout, Bill Grainger, Andrew Hollis, Heidi Hughes, Dawn Kiddie, Steve Morris and Tina Salisbury.

Against:           Cr Larry Baldock

carried 11/1

The substantive motion was then put:

Committee Resolution  FI4/20/2

Moved:       Cr Larry Baldock

Seconded:  Cr Jako Abrie

That the Finance, Audit and Risk Committee:

(a)     Receives Report COVID-19 Financial Update

(b)     Notes that a formal report will be made to Council prior to a June Special General Meeting of the shareholders of the Local Government Funding Agency seeking approval to amend the net debt /total revenue foundation policy financial covenant.

          Agrees that the CE uses his delegation to:

(c)     Authorise that on-street parking be free for the first 2 weeks of alert level 2, but that Council enforces the time limits in the various parking areas to ensure carpark turnover is maintained;

(d)     Authorise that off-street parking be free for the first two hours for the first 2 weeks of alert level 2. The carparks can be used for longer periods with users paying for that additional time past the first two hours.

          (e)     Authorise the General Manager: Infrastructure to extend the free parking in resolutions           (c) and (d) above a further 2 weeks in the event that parking turnover is being                           maintained.

 

Carried

 

8            Discussion of Late Items

Nil.

9            Public Excluded Session

RESOLUTION TO EXCLUDE THE PUBLIC

Committee Resolution  FI4/20/3

Moved:       Mr Bruce Robertson

Seconded:  Cr Tina Salisbury

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:

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under section 48 for the passing of this resolution

9.1 - COVID-19 Pandemic - Risk Register

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)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

s48(1)(a) - 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

9.2 - Litigation Report

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)

s48(1)(a) - 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

9.3 - Organisational change - Bay Venues Limited

s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons

s48(1)(a) - 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

 

Carried

 

The meeting adjourned 10.50am for 10 minutes

The meeting closed at 1.25pm.

 

The minutes of this meeting are to be confirmed at the Finance, Audit and Risk Committee meeting held on 22 September 2020.

 

...................................................

CHAIRPERSON

 


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 

7            Declaration of Conflicts of Interest

 

8            Deputations, Presentations, Petitions

8.1         Presentation from Bay of Plenty Regional Council and Quayside Holdings Limited  


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 

9            Business

9.1         Annual Residents Survey 2020

File Number:           A11696086

Author:                    Josh Logan, Team Leader: Corporate Planning

Authoriser:             Christine Jones, General Manager: Strategy & Growth

 

Purpose of the Report

1.       The Annual Residents Survey allows Council to better understand the community’s perception and satisfaction with Council, its services, functions and activities.

Recommendations

That the Finance, Audit and Risk Committee:

(a)     Receive Report – Annual Residents Survey 2020

 

Executive Summary

2.       The Annual Residents Survey allows Council to gauge residents’ perceptions on a range of Council services, functions and activities.

3.       Up until 2019/2020 the survey was conducted via telephone with a target of 200 residents every four months. In 2020 the methodology was changed to collecting responses via a mail-out with an additional possibility to complete the questionnaire online.

4.       645 surveys have been undertaken with Tauranga City residents and the resulting data analysed. The report by Key Research explores these findings in more detail, looking at trends and how the results to individual questions contribute to residents’ overall perception of Council.

Results Summary

5.       51% of respondents were satisfied or very satisfied with Tauranga City Council in general. Overall performance was most strongly influenced by reputation, followed by value for money and then core service deliverables.

Discussion

Context

6.       The Annual Residents Survey 2020 forms part of a wider set of information we have, or plan to obtain, around engagement with the Tauranga community and their wants, needs and perceptions of Council and of Tauranga as a place to live.

Overview

7.       Key Research has undertaken an annual residents survey from 2006 to 2020, on behalf of the Council, to gauge residents’ perceptions on a range of Council services, functions and activities.

8.       The Annual Residents Survey measures the perception of residents on a number of different aspects of Council’s business. It is undertaken over the course of the year, through separate waves. Data collection took place between 4th November 2019 and 31st May 2020 in three waves:

·    4th Nov 2019 – 2nd Dec 2019

·    10th Feb 2020 – 16th Mar 2020

·    1st May 2020 – 31st May 2020.

The overall results have a margin of error of +/- 4% at the 95% confidence level.

9.       Post data collection the sample has been weighted so it is aligned with known population distributions for the Tauranga City Council area, as per the Census 2018 results, based on age, gender, wards and ethnicity.

10.     A number of the survey questions relate to performance measures in the Long-term Plan and are reported to the community through the Annual Report. The results of each wave are used to provide indicative results to inform the quarterly monitoring reports.

11.     Key Research’s analysis of the Annual Residents Survey for 2020 is included as Attachment 1.

12.     Analysis of the data by Key Research provides 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.

Summary of Results

13.     Overall satisfaction with Tauranga City Council declined with 51% of residents rating the council 7-10 out of 10. Overall reputation has the greatest impact on overall satisfaction[1], and within this area building faith and trust in Council and delivering sound financial management have the greatest potential to improve satisfaction.

14.     Tauranga City’s reputation declined to 50, out of a range from -50 to +150 (down from 58 in 2019), a level considered ‘poor’ against the reputation benchmark[2]. The greatest decrease is seen among residents from both the Te Papa - Welcome Bay with score of 45 (58 in 2019), and Otūmoetai – Bethlehem wards area with score of 47 (60 in 2019).

15.     The Council has continued to maintain reasonable satisfaction levels for its Core Service Deliverables (public facilities, water management, outdoor spaces, roads/footpaths and cycle paths, and waste management)[3]. However, satisfaction has dropped from 72% last year to 66% of residents either satisfied or very satisfied with these deliverables[4].

16.     Areas that have seen an increase in satisfaction included: Tauranga having enough parks or green spaces; the look and feel of cemeteries in Tauranga (visitors), and that Freedom camping has been less of an issue over past 12 months.

17.     The strongest improvement opportunities exist around faith and trust, financial management and property rates being fair and reasonable as they are areas of high impact and relatively low performance. Areas with high impact and strong performance include waste management, invoicing being clear and correct, and roads/footpaths and cycle paths.

Strategic / Statutory Context

18.     The Annual Residents Survey allows effective monitoring of performance and insights to be gained to inform future planning.

Options Analysis

19.     There are no options associated with this report. The report is provided as information only.

Significance

20.     Under the Significance and Engagement Policy 2014, the decision to receive this report is of low significance.  

Next Steps

21.     The results of the Annual Residents Survey 2020 inform several of the performance measures included in the Annual Report.

22.     Wave one of the Annual Residents Survey 2021 will be reported to Finance, Audit and Risk Committee in late 2020.

Attachments

1.       Tauranga CC Residents Perception Survey 2020 - A11698421   


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

 


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 

9.2         CCO Draft and Final Annual Reports for 2019/2020

File Number:           A11738635

Author:                    Anne Blakeway, Manager: CCO Relationships and Governance

Authoriser:             Gareth Wallis, General Manager: Community Services

 

Purpose of the Report

1.       The purpose of this report is for the council-controlled organisations to provide their draft and final annual reports to Council regarding their financial and non-financial performance for the year 2019/2020.

Recommendations

That the Finance, Audit and Risk Committee:

(a)     Receive the council-controlled organisations’ draft and final annual reports for 2019/2020.

 

Executive Summary

2.       Tauranga City Council (TCC) has a number of council-controlled organisations (CCOs) who are required to provide their audited annual reports to Council regarding their financial and non-financial performance.

3.       Due to the impact of COVID-19 on public entities, Audit NZ have had to re-prioritise their audits, with several of the CCO audits being delayed this year. This means that draft annual reports for Bay Venues Limited (BVL), Bay of Plenty Local Authority Shared Services Limited (BOPLASS), Tauranga Art Gallery Trust (TAGT), Tourism Bay of Plenty (TBOP) are provided at this time. An audited annual report is provided for the Local Government Funding Agency (LGFA).

4.       A summary of each CCO’s performance against the financial and non-financial measures in their individual Statements of Intent (SOIs) is provided for BVL, BOPLASS, TAGT, TBOP and the LGFA.

5.       TBOP’s annual report will also be provided to Western Bay of Plenty District Council (WBOPDC) as joint shareholder, at their meeting on 24 September 2020.

Background

Requirement to report

6.       In accordance with their SOIs, BVL, TAGT, TBOP and the LGFA are required to provide draft annual reports to Council within two months of the end of the financial year. The final audited annual reports are due to be provided to Council within three months of the end of the financial year.

7.       In accordance with its SOI and the Local Government Act 2002 (LGA), BOPLASS is required to provide an audited annual report to Council within three months of the balance date (30 September).

8.       BVL, TAGT, TBOP and BOPLASS are audited by Audit New Zealand and LGFA is audited by KPMG. Due to the impact of COVID-19 on public entities, Audit New Zealand have had to re-prioritise, leading to the CCO audits being delayed this year.

9.       A legislative change on 5 August 2020 provides for CCOs with a 30 June balance date to extend their statutory reporting timeframe until 30 November 2020. (See Attachment 1, letter from the Office of the Auditor General.)

10.     This means that BVL, BOPLASS, TAGT and TBOP have only been able to provide draft Annual Reports and financial statements to Council as follows:

CCO

Date board approved

Date draft received by TCC

(due 30 September)

Reference

BVL

Draft, unaudited Annual Report

TBC

11 September 2020

Attachment 2

BOPLASS

Draft, unaudited Annual Report

TBC

2 September 2020

Attachment 3

TAGT

Draft, unaudited Annual Report

TBC

31 August 2020

Attachment 4

TBOP

Draft, unaudited Annual Report

TBC

31 August 2020

Attachment 5

LGFA

Final, audited Annual Report

27 August 2020

28 August 2020

Attachment 6

11.     Annual reports are provided by the CCOs to the Finance, Audit and Risk Committee as part of its role to ensure the CCO’s performance is consistent with their SOIs and other accountability documents.

12.     As TBOP is a joint CCO with WBOPDC, TBOP’s draft annual report will also be provided to their Council meeting for discussion on 24 September 2020.

13.     Specifically, the SOIs require that the annual reports include:

(i)      Statement of Financial Position (balance sheet);

(ii)     Statement of Comprehensive Income (income statement);

(iii)     Statement of Movements in Equity;

(iv)    Statement of Cash Flows;

(v)     Disclosure of related party transactions;

(vi)    Notes to the Financial Statements; and

(vii)   Such other statements as may be necessary to fairly reflect the financial position of the Company and its subsidiaries, the resources available to the Company and its subsidiaries and the financial results of the operations of the Company and its subsidiaries.

14.     The board of each CCO is also required to provide a board report, including a summary of the financial results, a report of the operations, and a comparison of performance in relation to objectives.

15.     All five draft Annual Reports have met the legislative and SOI requirements. Final copies of audited Annual Reports will be provided for each of the CCOs by the extended statutory reporting timeframe of 30 November 2020.

Bay Venues Limited (based on draft, unaudited report)

16.     The draft unaudited BVL Annual Report 2019/20 is provided as Attachment 2.


 

Summary of financials

17.     BVL reported an EBITDA deficit of $918,000, or $2.01 million after interest, tax and depreciation. This was against a budgeted EBITDA surplus of $221,000, or $1.2 million after interest, tax and depreciation.

18.     This was based on an actual revenue of $18.25 million against a budgeted revenue of $20.5 million (excluding TCC debt servicing, renewal funding and rehabilitation expense funding). The deficit is partially offset by the government’s COVID wage subsidy of $2 million.

19.     The deficit is partially offset by BVL’s contribution of $692,000 to the BVL depreciation reserve. This reserve is held by Council for BVL asset renewals. As at 30 June 2020, BVL has contributed $1.87 million to the reserve for depreciation on new capital.

20.     Note 27 to the financial statements (page 35 of Attachment 2) addresses major variations against budget. Operating revenue was behind budget largely due to closure of facilities during the COVID-19 lockdown period, with user fees and charges down by $3.7 million. This figure was partly offset by the government’s wage subsidy. Operating expenditure was below budget due to savings realised while facilities were closed.

21.     TCC’s renewals funding to BVL was $4.1 million, which included $241,000 rehabilitation funding. This was lower than budgeted, primarily due to the Baywave contingency costs not being required. The Memorial Pool renewals project has also been put on hold.

22.     Note 31 to the financial statements (Pages 37-38 of Attachment 2) details the impact of COVID-19 on BVL, including a budgeted future impact in FY 2020/21 of $3.3 million to user fees and a $1.03 million reduction in profitability. To mitigate this impact, BVL has frozen all remuneration increases, staff training and recruitment expenses in FYE 2021, along with other operating expenses where possible.

Summary of SOI performance

23.     A balanced scorecard table outlining the targets and providing commentary on BVL’s performance against each of them has been provided on page 41 (non-financial) and page 42 (financial) of the Annual Report (Attachment 2). Five out of the seven targets (or 70%, based on the percentage weighting) set out in BVL’s 2019/20 SOI have been achieved.

24.     Further, BVL have undertaken all 13 of the community output actions/activities identified within schedule A of BVL’s SOI with TCC. It is noted that the utilisation outcome was not achieved due to the closure of Baywave in July/August for repairs and maintenance, and the closure of all community facilities for nine weeks during the COVID-19 lockdown period.

25.     Performance measures that have not been achieved by the year end include revenue and EBITDA targets (as outlined in the summary of financials above), and Return on Investment (ROI), or TCC fee for service per user ratio. ROI is $1.49 – or 22% behind on the previous year’s result of $1.22 – again as a result of the closure of community facilities during the COVID-19 lockdown period.

26.     The turnover rate for all full-time and part-time permanent staff decreased from last year’s 31.7% to 24.3% this financial year. While this rate was already trending downwards during the year, BVL acknowledge that COVID-19 has had a significant positive impact on staff turnover.

27.     FYE 2020 has seen a decrease in the number of facility-related Health and Safety incidents to 139, from 144 in the previous year.

28.     In order to limit the expense of undertaking an annual customer survey, BVL used a different methodology this year, seeking customer experience feedback from six specific business areas instead of the usual cross-organisation approach. 89% of customers surveyed expressed that they were satisfied or very satisfied with their customer experience.

Other comments

29.     Pages 3-8 of BVL’s draft Annual Report contain a summary of the year’s results, noting that BVL’s 24 facilities were used by 1.79 million people during the year, compared to 2.11 million last year. More than 38,806 hours were spent within community centres and halls (compared to 47,789 last year), noting that all facilities were closed from 25 March to 12 May 2020.

30.     A snapshot of ‘Stories of the Year’ is provided on pages 7-8, including the Bay Dreams Festival which benefitted the city to the tune of $4.1 million in terms of economic development. Other highlights include the remediation and rejuvenation of Baywave Aquatic and Leisure Centre, and the BaySwim programme. 

31.     The Chairperson’s Report (Attachment 2, pages 9-10 of BVL’s Annual Report) notes the impact of COVID-19 on BVL and recognises the contribution of former Chief Executive, Gary Dawson. The Chair also highlights the need to review the future of some of BVL’s facilities, which are no longer fit for purpose and prioritise investment in the 2021-2031 Long Term Plan.

32.     The Chief Executive’s Report (Attachment 2, pages 11-13) notes non-financial performance targets met, as well as savings of over $527,000 that were made in the last four months of FYE 2020 which, combined with the government’s wage subsidy, saw BVL mitigate the financial impact of COVID-19.

33.     Additional operational highlights from the 2019/20 year noted in the CE’s Report include:

·   The development and implementation of a new digital transformation strategy, including document management system.

·   The handling of the COVID-19 pandemic shutdown, with positive feedback from users and customers.

BOPLASS Limited (based on draft, unaudited report)

34.     The draft unaudited BOPLASS Annual Report 2019/20 is provided as Attachment 3.

Summary of financials

35.     BOPLASS has finished the 2019/20 year with a deficit after tax of $15,223 (compared to a budgeted surplus of $329,000, and a surplus after tax of $5,322 last year).

36.     Revenue was lower than budget due to a lower project revenue than budgeted, but expenses were reduced to compensate. Note 25 to the financial statements (page 44 of Attachment 3 – BOPLASS draft Annual Report) provides explanations of major variances against budget. 

Summary of SOI performance

37.     BOPLASS’s Annual Report states that all SOI targets have been achieved (6 out of 6, or 100%). A table outlining the targets and providing commentary on BOPLASS’s performance against each item is provided on pages 8-13 of the attached draft Annual Report (Attachment 3).

38.     Notable highlights include:

·   A key inter-regional project has been the appointment of a provider for insurance brokerage and risk management services, with BOPLASS developing the procurement initiative on behalf of 28 North Island councils. This has provided savings in both fees and insurance premiums.

·   The MahiTahi Collaboration Portal proved to be an invaluable tool during the COVID-19 lockdown and has simplified the sharing of information, including the development of tender documents and information, and also health and safety expertise across the region.

·   Securing councils’ infrastructure insurance into the international markets at favourable rates and terms for all councils.


 

Tauranga Art Gallery Trust (based on draft unaudited report)

39.     The draft unaudited TAGT Annual Report 2019/20 is provided as Attachment 4.

Summary of financials

40.     TAGT has finished the 2019/20 year with a $67,932 surplus, against a budgeted deficit of $75,096 – a very pleasing result considering the impact of COVID-19. This was mainly due to changes in TAGT’s events strategy and an increase in touring income, as well as the government’s wage subsidy.

41.     Note 18 on pages 20 and 21 of the TAGT Annual Report (Attachment 4) addresses major variances to the budget, including a total decrease in revenue of $135,011 due to sponsorship, grants, donations and venue hire being below budget as a result of the impact of COVID-19 and the resulting closure of the Gallery.

42.     However, TAGT is to be commended for the significant reduction in expenses of $312,858, which it has made on employee costs, the education programme, administration, exhibition, building and maintenance costs.

43.     The value of TAGT’s property, plant and equipment reduced by $111,194 on the previous year due to the revaluation of artworks undertaken by an independent valuer.

44.     The trust is in a stronger cash position than the previous year, with an increase of $124,433 in the value of its cash and investments. These changes contributed to a slight increase in the Trust’s total asset values and a consequential increase in TAGT’s equity to $9.9 million.

Summary of SOI performance

45.     Highlights include a total of 52,895 visitors through the Gallery, including 7,911 students through education programmes. The Art Bus was used by 46 different schools free of charge.

46.     Visitor numbers included 18,154 visitors to Mr G’s ‘Home’ signature exhibition and 27,587 visitors to TAGT’s collaborative exhibition with Tauranga City Council’s Heritage Collection.

47.     The Gallery has delivered 16 exhibitions of local and national significance, delivering a broad range of genres, subjects and media, as well as eight ‘Friends of the Gallery’ events. Five touring exhibitions in Whakatane, Whangarei, Te Awamutu, Franklin and The Dowse hosted another 40,292 visitors – a considerable increase of 32,000 on the previous year.

48.     TAGT achieved a high level of customer satisfaction, with 86% of 2,425 surveyed visitors either extremely satisfied or highly satisfied, compared to 81% of 6,204 surveyed responses last year.

49.     Some of TAGT’s key performance targets have not been met, as a direct result of COVID-19 and the impact on international visitor numbers and limited domestic visitors, including:

·    The Gallery was closed from 26 March to 19 May, which has meant that visitor numbers reached 88% of TAGT’s target of 60,000 – down by 12,880 on the previous year.

·    Admission donations were down by 4.2% on budget.

·    Retail sales were down $9,000 on the previous year.

·    Venue hire income was 48% below previous years, with approximately 25% of this relating to restrictions on event and venue gathering numbers as a result of the COVID-19 alert levels.

Other comments

50.     Tauranga Art Gallery was the first New Zealand venue to present Terminus by international artists Jess Johnson and Simon Ward, with their pioneering use of virtual reality which drew in 22,751 visitors.

51.     While sourcing external funds to meet the rising cost of exhibitions continues to be the Gallery’s biggest challenge, TAGT succeeded in raising 24% of its operating revenue from external sources, against a goal of 20%. (This figure excludes the wage subsidy).

52.     A positive outcome from the decline in visitor numbers to the CBD has been the Gallery’s development of online art tutorials, including a series of artist video interviews and three virtual exhibition tours during the COVID lockdown period.

Tourism Bay of Plenty (based on draft unaudited report)

53.     The draft unaudited TBOP Annual Report 2019/20 is provided as Attachment 5.

Summary of financials

54.     The financial summary shows an overall positive result of $2,108 compared to budget. As per the key performance indicators in their statement of intent 2019-2022, TBOP has maintained a working capital ratio of not less than 1 (actual 1.3) and equity ratio above 0.5 (actual 0.51).

55.     Tourism BOP met budget by offsetting reductions in budgeted income with corresponding reductions in expenditure, and with the assistance of the first round of the government wage subsidy.

56.     Page 37 of the attached TBOP Annual Report (Attachment 5) addresses major variances to the budget, including significantly reduced retail sales due to reduced stock and the COVID-19 lockdown, as well as reduced commissions and budgeted funding that was not received.

57.     These variances were offset by a reduction in international marketing, administration and overhead costs, and employee costs. Trustee fees were lower than budgeted due to Board vacancies for part of the year.

58.     The trust has a decrease in its cash position from the previous year, with $190,683 in its bank accounts and cash, compared to $396,072 in 2018/19. A slight decrease in total assets, combined with a slight decrease in total liabilities, has contributed to a slight increase in the Trust’s total equity to $424,935 (from $422,827 in 2018/19).

Summary of SOI performance

59.     The Chairperson’s Report (page 2 of the TBOP Annual Report – Attachment 5) notes the first half of the 2019/20 year saw 8% growth in the region’s visitor economy, comprised of 6% growth of the domestic market and 16% growth of the international market.

60.     Of the 65 measures used to track Tourism BOP’s progress, 53 were achieved, or 82%. A table outlining the targets and commentary on TBOP’s performance against each of them is provided on pages 41 to 52 of the attached Annual Report (Attachment 4).

61.     Due to the Whakaari/White Island eruption and the COVID-19 pandemic, five performance measures were not achieved and a further seven were put on hold or changed to focus on the crises at hand. These include:

·    Visitor spend goals (total, domestic, international and cruise) were unable to be met due to the imposed travel restrictions.

·    Total visitor spend was $91 million – or 7.1% short of the June 2020 target. However, it should be noted that the Coastal Bay of Plenty has experienced less impact than the national average loss of 12.3% thus far, due to having less reliance on the international visitor market than some other key New Zealand destinations.

·    Similarly, the goal for growth in the number of export-ready operators was not met as one of the products that was export-ready was mothballed due to the pandemic.

·    The new website was successfully launched in March 2020, but the implementation of online sales and service capability has been delayed.

·    Visitor satisfaction and Visitor Information Services surveying were put on hold, with a view to implementing them over the 2020/21 financial year instead.

·    Establishment of ‘passion groups’ and mapping regional infrastructure experiences to identify gaps were both delayed, as was the formation of a Leadership Advisory Group.

·    Tourism forecasts have not been updated due to the uncertainty in the tourism sector caused by the COVID-19 pandemic.

Other comments

62.     The challenges created by crises such as the Whakaari/White Island eruption and the COVID-19 global pandemic demonstrates an even greater need for TBOP’s Te Hā Tāpoi - The Love of Tourism three-year destination management strategy, which launched in March.

63.     TBOP’s immediate focus is on the domestic and local markets, while also maintaining a presence in the international market to maintain awareness.

64.     Tourism BOP officially opened the new Tauranga i-SITE on The Strand in November 2019 and launched the new www.bayofplentynz.com website in March 2020. Both align closely to the destination’s Place DNA™ themes and provide inspiration for visitors.

65.     In May 2020, the ‘No Place Like Home’ campaign was re-launched encouraging locals to explore the Coastal Bay of Plenty and share their love of this place with their visiting friends and family. The campaign was the runner-up for a marketing award and received an additional $15,000 media advertising as a result.

66.     Tourism BOP worked extensively with local and national media throughout 2019/2020 to advocate on behalf of the region’s tourism industry and visitors, generating over $12 million in Equivalent Advertising (EVA) through partnerships through Tourism NZ and Air NZ.

67.     TBOP’s Annual Report will also be presented to the WBOPDC at their Council meeting on 24 September 2020.

The Local Government Funding Agency (based on audited report)

68.     The audited LGFA Annual Report 2019/20 is provided as Attachment 6, with a cover letter to shareholders provided as Attachment 7.

Summary of financials

69.     The LGFA has finished the 2019/20 year with an $10.6 million surplus (compared to $11.2 million in 2018/19). Three new council members were added, bringing the total to 67 member councils.

70.     Long-dated lending to councils over the 2019/20 year was $2.33 billion – slightly less than the record amount of $2.45 billion in the previous year – but LGFA’s estimated market share of 85.7% remained high.

71.     The LGFA has declared a dividend of 3.51% for the 2019/20 financial year, compared to 4.62% in 2018/19. This represents a payment of $65,496 to Council, which was received on 6 September 2020.

Summary of performance

72.     The LGFA’s Annual Report states that the two primary performance targets for the year ended 30 June 2020 have been achieved, i.e. that net interest income for the period was greater than $17.9 million (at $18.2 million), and that annual issuance and operating expenses for the period were less than $6.3 million (at $6.26 million).

73.     Six out of the eight additional targets for the year ended 30 June 2020 were also achieved. A table outlining the targets and providing commentary on LGFA’s performance against each of them is provided on page 17 of the attached Annual Report (Attachment 6).

74.     The two missed SOI targets are outlined below:

·   Travel restrictions due to the COVID-19 lockdown restricted LGFA’s ability to meet with each Participating Local Authority during the final quarter of the year. However, all annual compliance certificates were completed by all council members in 2019.

·   There were two compliance breaches of the Treasury Policy during the 12-month period ending 30 June 2020. There was no financial loss to LGFA from either breach and reputational risk was assessed to be minimal. LGFA management have reviewed controls that could be put in place to mitigate the risk of further breaches.

Other comments

75.     The LGFA maintained its AA+ rating from both Standard & Poor and Fitch Ratings. This rating maintains parity with the New Zealand Government’s credit rating.

76.     All treasury covenants were met throughout the 2019/20 financial year.

Strategic / Statutory Context

77.     The Local Government Act 2002 (LGA) requires CCOs to provide audited annual reports to their shareholders. The annual reports are helpful when developing Council’s Letters of Expectation (LOEs) for its CCOs for the following year.

78.     Council’s partnerships with its CCOs help deliver our community outcomes and facilitate improved quality of life, quality of economy and sound city foundations.

Financial Considerations

79.     The financial considerations are outlined in the main body of the report and attachments.

Legal Implications / Risks

80.     The Annual Reports meet the legislative requirements for the CCOs to provide Council with an overview of performance against their SOIs on both financial and non-financial measures.

Consultation / Engagement

81.     No consultation or engagement is required or planned.

Significance

82.     Under TCC’s Significance and Engagement Policy, the receipt of the CCOs’ draft Annual Reports is considered to be of low significance as they are reports of actual performance against objectives previously agreed in the SOI.

Next Steps

83.     The CCOs will be informed of Council’s consideration of this paper.

84.     Final copies of audited Annual Reports will be provided by BVL, BOPLASS, TAGT and TBOP by the extended statutory reporting timeframe of 30 November 2020.

85.     Any issues raised will be considered during the upcoming development of the annual Letters of Expectation (LOE) for the 2021-2024 statements of intent, which will be presented to Council for approval in December 2020.

86.     The CCOs are currently finalising their planning for the 2021-2031 Long Term Plan. Any significant proposals will be presented to Council separately as required.

Attachments

1.       Office of the Auditor General letter - 30 June 2020 - A11830041

2.       BVL DRAFT Annual Report & Financial Statements 2019/2020 - A11830031

3.       BOPLASS DRAFT Annual Report & Financial Statements 2019/2020 - A11830037

4.       TAGT DRAFT Annual Report & Financial Statements 2019/2020 - A11830039

5.       TBOP Draft Annual Report & Financial Statements 2019/20 - A11830038

6.       LGFA Annual Report & Financial Statements 2019/20 - A11830063

7.       LGFA Cover Letter to Shareholders for Annual Report 2019/20 - A11830064   


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 

PDF Creator


 


 


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


PDF Creator


PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


PDF Creator


PDF Creator


 


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


PDF Creator


PDF Creator


 

PDF Creator


 


 

PDF Creator


PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 


 

PDF Creator


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


PDF Creator


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 

PDF Creator


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 

9.3         Tauranga City Council Draft Annual Report

File Number:           A11671759

Author:                    Kathryn Sharplin, Manager: Finance

Tracey Hughes, Financial Insights & Reporting Manager

Rhea Brooks, Corporate Planner

Authoriser:             Paul Davidson, General Manager: Corporate Services

 

Purpose of the Report

1.       The purpose of this report is to provide councillors with an update of the year end financial and non-financial results for Tauranga and to give councillors an opportunity to feedback comments on the presentation of the annual report.

Recommendations

That the Finance, Audit and Risk Committee:

(a)     Receives Report on Tauranga City Council Draft Annual report

 

 

Executive Summary

2.       The draft financial report shows results consistent with those reported in the quarterly reports through the year and during the Covid-19 lockdown period.  The Covid-19 impact, commencing with the 6-week lockdown, reduced revenue in key areas reliant on user fees and further slowed capital delivery and some operational expenditure for the year.  There was a small rates surplus at year-end of $390,000, which council agreed to use to fund operating costs in 2020-21.

          Key draft Financial results for TCC include:

$257m total operating revenue (consolidated)

$277m total operating expenditure (consolidated)

$22m capital and operating subsidies

$31m development contribution revenue

$131m capital expenditure

$525m net debt

$390k rates surplus

204% debt to revenue ratio (consolidated)

 

3.       Note that the above numbers are subject to final audit and therefore may change before the final adoption in October.

4.       The overall result of the non-financial performance measures for the full financial year show a total of 86 measures achieved (58%), 49 not achieved (33%), and 13 not able to be measured (9%). Of the 49 measures off-track, 22 measures have been affected by COVID-19.

5.       The front portion of the annual report identifies activity highlights for the year along with key financials.  Overall, the financials show performance unfavourable to budget, with an overall operating deficit that is significantly higher than budgeted due to both revenue shortfalls and unbudgeted expense in the form of asset write-offs and increased weathertight provision.

6.       Councillors have an opportunity to provide feedback on this draft Annual report prior to its finalisation for adoption in October.

 

Background

7.       The draft Annual Report for the year ended 30 June 2020 is attached to this report.

8.       The discussion below is divided into two sections:

(i)  financial results and

(ii) Non-financial performance against performance measures set in the LTP and Annual Plan.

Financial Results

9.       The operational results of council shown in the Statement of Comprehensive Revenue and Expense for Council and on a consolidated basis with its CCOs, are unfavourable to budget due to lower revenue and significant unbudgeted costs and asset write-offs. 

10.     The surplus of operating revenue over expenditure (excluding asset revenue and other expenses) was close to budget with lower revenue offset by lower depreciation costs. There was a small rates surplus of about $390,000 at year end, which council resolved to offset against 2020-21 operating costs during the annual plan adoption.

11.     Operating revenue is $7.7m below budget for user fees.  It is estimated that in total about $4m of the loss of operating revenue could be attributed to the impact of Covid-19. The rest was due to less activity than expected when budgets were set across building and planning consents, parking revenue (budgets had included revenue of $1.2m from Harington Street carpark) and forestry harvesting in the water catchment, which did not take place. The main areas of below budget revenue include:

(a)     Parking revenue $4.1m ($2.3m post Covid-19)

(b)     Building & Planning $2.3m ($0.5m post Covid-19)

(c)     Forestry Harvesting in the water catchment $1.8m

(d)     Airport revenue $1.4m ($1.3m post Covid-19)

(e)     Property and Historic Village loss of lease revenue $0.6m

 

12.     Rates revenue was close to budget with most revenue collected by mid-March prior to the lockdown.  Overall 98.6% of rates revenue was received for the year with the balance followed up over time under normal follow up processes within the rates team.

13.     Operational subsidies included Covid-19 wage subsidies to TCC ($1.8m), BVL $2.0m.and the Art Gallery ($0.1m).  These subsidies were unbudgeted.  NZTA subsidies were close to budget.

14.     Finance revenue was above budget $1m largely related to timing of borrowings and delays in capital expenditure due to Covid-19 which meant that more funds were held on deposit.

15.     Operating expenditure was below budget as a result of depreciation being $4m below budget as a result of water and wastewater depreciation being revised down as part of the 2018-19 revaluation process, along with the slower capital delivery in these activities which affects the total value of new assets to be depreciated.  These two adjustments were not incorporated in the final annual plan budgets for 2019-20 but have been reflected in the 2010-21 annual plan.

16.     Additional operational expenditure across several activities was largely offset by underspends in other parts of the business.  The high-level summary of expenditure variances is included in the groups of activities funding impact statements.

17.     Covid-19 resulted in additional costs in areas of construction maintenance contracts, in enabling staff to work effectively from home and assisting in civil defence areas.  These costs were partially offset by other areas of expenditure slowing down as a result of Covid-19 and the lockdown.

18.     As well as operational results, the Statement of Comprehensive Revenue and Expense reports asset development revenue and other gains and expenses to provide an overall surplus after tax.  The overall surplus is $3.6m, which is $81.5m below budget.  On a consolidated basis the surplus is $1.6m.  The main drivers of the variance include:

(a)     lower asset revenue from NZTA subsidies due to slower capital delivery ($13m)

(b)     vested assets due to timing of receipt of physical assets ($26m),

(c)     Offset by higher Development contributions ($5m) and other gains primarily non-cash revaluations.

19.     Losses accounted for the balance.  These losses were from:

(a)     the write-off of capital expenditure on Harington Street carpark ($24.9m)

(b)     the increase in provisions expense to recognise the liability of weathertight claims including Cayman Apartments ($12.5m)

(c)     the required valuation of fixed interest rate hedging on borrowings.  These losses are not realised but record the difference in interest payable on the transactions against current market interest rates at balance date ($13.5m).

20.     Net debt at year end was $525m which was $18m below budget.  This lower debt position reflects slower capital delivery.  However, it was higher than budgeted for the capital delivered for several reasons:

(a)     Revenue losses from Covid-19

(b)     unbudgeted costs as a result of Bella Vista

(c)     higher costs of capital projects.

21.     Financial Prudence Benchmarks must be reported by all Councils.  This year TCC did not achieve two of these for the first time:

(a)     The balanced budget benchmark which is achieved if revenue (including capital subsidies) is greater than operating expenditure (including asset write-offs and other losses). 

(b)     The operations control benchmark which is achieved if actual net cash flow is equal to or above planned net cash flow from the LTP.  This year net cashflow was less than LTP budget primarily due to loss of revenue from Covid-19 and lower rates revenue than planned in the LTP.

 

Key themes from financial results

22.     The financial results for the year ended 30 June 2020 reflect a number of key themes, some of which relate to the year’s events, while others are ongoing issues and challenges:

Events in 2020 financial year:

(a)     The impact of Covid-19

(b)     The write off of Harington Street carpark capital work due to design issues

(c)     Unbudgeted costs related to consenting issues at Bella Vista and Cayman apartments

(d)     Ongoing growth in building consents.

Ongoing funding and financing issues:

(e)     The challenges and risks to physically deliver a large capital programme

(f)      The cost and scope increases associated with our capital programme

(g)     Growth impacts and the costs of managing growth

(h)     The effect on financial strength of TCC with increasing total debt and declining debt to revenue position as expenditure (both capital and operational) continues to exceed revenue.

23.     Each of these items is summarised in the key financials section of the annual report. Council will have an opportunity to consider and provide feedback on the annual report before it is finalised.

Non-financial perfomance Measures

24.     Within a Long-term Plan, the level of service that the council will deliver is agreed upon by the council in consultation with the public. The Local Government Act 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 measures. In the 2018-28 Long-term Plan there were 148 non-financial performance measures that were agreed upon, of which 23 are mandatory from section 261B of the Local Government Act 2002.

25.     This draft annual report presents the position of how the council achieved the non-financial performance measures and ultimately the levels of service during the financial year. Of the 148 non-financial performance measures, 135 of them have been measured during the financial year.

26.     The result for the full financial year is that a total of 86 non-financial performance measures have been achieved (58%) and 49 were not achieved (33%), with 13 not able to be measured (9%). Of the 49 measures off-track, 22 measures have been affected by COVID-19.

27.     The following high-level observations can be made for the activity areas:

          We performed strongly in the following areas:

·    We achieved 100% of our performance measures in cemeteries and city planning and infrastructure.

We were close on a number of measures and we believe we provided a good level of service:

·    Of the 49 targets not met, 14 were within 1-10% of our target.

·    There was strong demand for community bookings (83%) at Baycourt, which limited the opportunities for commercial hires (17%). This was further amplified by COVID-19.

·    The results from emergency management, whilst overall positive, highlight that our staff need more training to increase the 32% of staff qualified to supply an Emergency Operations Centre. These trainings whilst scheduled, were delayed due to supporting the Whakaari eruption and COVID-19 responses.

 

COVID-19 impacted 22 measures from the following activities:

·    Airport

·    Arts and Heritage

·    Baycourt

·    Beachside

·    City Events

·    Community Development

·    Elder housing

·    Emergency Management

·    Libraries

·    Parks and Recreation

·    Regulation Monitoring

·    Resource Recovery and Waste

·    Transportation

 

28.    Seven measures in the LTP were changed after resolutions by the Audit, Finance, Risk and Monitoring Committee on 19 February 2019 and 27 November 2019. They relate to arts and heritage, emergency management, and resource recovery and waste. These measures are tabled separately in the activities section of the report, under ‘Additional measures monitored’ and have been excluded from our overall performance summary.

Strategic / Statutory Context

29.     The Annual Report is a public document that reports to the community on the Council’s performance and achievements against what was planned, for both financial and non-financial performance. The Annual Report must be prepared each year in accordance with generally accepted accounting practice in New Zealand and compliant with the requirements of the Local Government Act 2002.

Options Analysis

30.     There is no options analysis for this report.

Financial Considerations

31.     The financial statements and information presented is for the financial year completed on 30 June 2020.

Legal Implications / Risks

32.     The audited Annual Report normally must be adopted by 30 October 2020, under the Local Government Act 2002.  However, because of Covid-19 the adoption date allowable has been extended by Government to December 2020.

Consultation / Engagement

33.     The Audited Annual Report will be published with limited circulation of printed copies and an electronic copy provided on the website.

Significance

34.     This report is not significant in terms of the significance and engagement policy.

Next Steps

35.     Audit New Zealand is currently undertaking its audit of the annual report working with staff to ensure all requirements are met. Elected members have been provided a copy report and feedback has been invited.

36.     The final Annual Report will be presented to Council for adoption on 28 October 2020.

Attachments

1.       TCC Annual Report 2019-20 DRAFT - A11843627 (supplementary document)    


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 

 

9.4         Funding and Financing for the Long Term Plan

File Number:           A11831353

Author:                    Kathryn Sharplin, Manager: Finance

Mohan De Mel, Treasurer

Authoriser:             Paul Davidson, General Manager: Corporate Services

 

Purpose of the Report

1.       To identify the key financial issues, challenges and options for the 2021-31 Long Term Plan (LTP) and funding and financing options for further investigation

Recommendations

That the Finance, Audit and Risk Committee:

(a)     Agree to further consideration of the following funding and financing matters and prioritisation for the Long Term Plan

(i)      Infrastructure Funding and Financing (IFF) application to new greenfield growth areas

(ii)     Prioritisation and timing of expenditure

(iii)     Targeted rates for transportation and stormwater

(iv)    Level of commercial differential

(v)     Treatment of risk reserve and providing for weathertight claims and unforeseen events

(vi)    Financial limits on rates that take into account the wider funding impacts

(vii)   Other funding and finance opportunities at local, regional and national level

 

 

 

Executive Summary

2.       The major challenge for the LTP is that Tauranga City Council (TCC) has insufficient funding and financing available to deliver the infrastructure that is required for this growing city.

3.       Across three waters, transportation and community the new infrastructure required in the next ten years is a stepped increase that is likely to require several billion dollars of expenditure. 

4.       The LTP will be formulated based on two scenarios which were presented to the Policy Committee on the 8th September.  These scenarios were

-     Core, committed and prioritised

-     Connected and growing communities

Whilst the full quantum of investment under each scenario will not be available until later in the year it is anticipated that both scenarios will place funding and financing pressure on TCC with the second scenario requiring further funding and financing options to be able to be implemented.

5.       Council will need to look at a variety of levers to address this challenge that include:

(a)     raising additional revenue

(b)     moving some investment off balance sheet

(c)     reducing expenditure through prioritisation.

 

6.       To address these options it is proposed that further investigation is undertaken:    

(a)     relating to rating structure, in particular:

(i)      the benefits of rate funded expenditure on services and infrastructure (hypothecation) in the areas of:

(1)     Transportation

(2)     Stormwater

(ii)     the commercial differential, including relative benefit of council services and benchmarking with other councils.

(b)     The option of Infrastructure Funding and Financing (IFF) application to new greenfield growth areas

(c)     Prioritisation of capital and operational expenditure

(d)     Other contribution to costs of infrastructure including funding and financing options with other partners at a local, regional and national level.

It should be noted that further work on Waters Reform will occur through the development of the LTP but is not included within the scope of these options.

7.       Further work on these matters will be brought back to council through the Revenue and Financing Policy and Financial Strategy

 

Background

Key Challenge: Funding and financing capacity insufficient to meet infrastructure needs

8.       TCC has experienced over 20 years of rapid population growth with its associated demand for new infrastructure.  These costs have been balanced against the need to manage rates and debt increases to remain affordable and sustainable.  As a result of many years of new infrastructure provision, Tauranga Council has one of the highest levels of debt of any Council in New Zealand, a deficit of community infrastructure and significant pressure on its roading and three waters networks.  By the 30 June 2021 TCC net debt is budgeted to be $688m based on the funded capital programme for 2020-21.

9.       The next ten years sees the need for substantial capital investment on stepped infrastructure across water, wastewater and transportation and the need to provide community infrastructure in many of our existing communities as well as across new growth areas.  Further pressure comes from the impacts of climate change, recent assessment of the infrastructure requirements to build resilience, and increasing environmental standards.

10.     Based on the capital investment requirements identified in the 2018-28 LTP, and growing assessment of costs of this infrastructure we are expecting the infrastructure requirements over the next ten years to exceed council’s funding and financing capacity by over $1 billion.  The level of investment capacity is between $1.5-$2b over the period depending on the level of rates increases and other funding.

11.     Council’s capacity to borrow has been extended by the movement of the LGFA debt to revenue ratio limit from 250% to 300% for two years reducing to 280% by 2026.  A prudent borrowing limit would see an amount of debt headroom of 20-25% maintained below these limits.

 

High level Financials

12.     The graphs below show the relationship between the level of capital expenditure alongside rates-increase assumptions and the effect over five years on the debt to revenue ratio.   These graphs are intended to show the high level financial issues and the rating levels assumed are for illustrative purposes only.  They will be refined once the full LTP is developed later in the year.

13.     The first graph shows the increase in the debt to revenue ratio as a result of a capital programme of $200m per annum for the next 5 years and rates increases held at low levels around CPI + 2% + growth.  Over time, the debt headroom (amount above Council’s self- imposed debt limit and the LGFA debt limit) is eroded if rates are maintained at this minimum level.

 

 

14.     The second graph shows the improved situation if rates are increased 2.1% more than in graph 1, when this additional revenue is used to retire debt rather than fund increased expenditure.

Options:  Funding, Financing and Prioritisation

 

15.     Council has a number of levers to assist to meet the infrastructure funding and financing challenges.  Broadly these options include:

(a)     Prioritisation of infrastructure so that the most critical and beneficial infrastructure is put in place first

(b)     Prioritisation of operating expenditure, which was covered in the review of operational expenditure during the annual plan

(c)     “Off balance sheet options” which would enable other organisations to put in place some of the infrastructure (albeit with the costs ultimately paid by ratepayers), or regional or national funding

(d)     Additional revenue whether through higher rates, other charges or grants.

(e)     Changes to the structure of rates and charges so that those who benefit most from the expenditure contribute proportionately

(f)      Costing and pricing to better account for risk and contingencies

(g)     Options to budget for unforeseen events and weathertight claims

 

Rates funding options

16.     Changes to rating structure have been made over the last three years to better reflect a fair and equitable rating structure.  A commercial differential of 1:1.2 was phased in over three years and the UAGC the fixed portion of general rates was reduced to 10% of the general rate from its earlier maximum level of 30%.

17.     All changes to rating structure need to consider the requirements of the Local Government Act 2002.  They should be guided by key principles including:

(a)     Fairness and equity

(b)     Transparency and accountability

(c)     Simplicity

(d)     Cost effective administration

18.     To achieve these principles the purpose of the expenditure for which rates are sought needs to be considered to determine:

(a)     What is the distribution of benefits between the whole community, parts of the community and individuals?

(b)     Is the cost benefit balance right?

(c)     Do we have the right mix of general and targeted rates?

(d)     Is the overall impact on the community fair and equitable?

19.     A number of new ways of funding and financing significant areas of expenditure have been identified that could be investigated further prior to their consideration as part of this LTP.  Council agreement is sought prior to further work being undertaken in the following areas:

(a)     Further investigation of rates structure options in relation to:

(i)      the benefits of rate funded expenditure on services and infrastructure (hypothecation) in the areas of:

(1)     Transportation

(2)     Stormwater

         Given time pressures to complete the LTP following the impact of Covid19 it is recommended not to look at any further targeted rate opportunities in this LTP.

(ii)     the commercial differential, including relative benefit of council services and benchmarking with other councils.

(b)     The option of Infrastructure Funding and Financing (IFF) application to new greenfield growth areas

(c)     Prioritisation of capital and operational expenditure

(d)     Other contribution to costs of infrastructure including regional and national funding & financing

20.     Funding and financing risk.

(a)     Currently councils risk reserve is in deficit largely due to the amount of leaky home claims paid or provided for from this reserve

(b)     Further investigation is recommended as to the treatment of this reserve including the separation of funding for leaky homes and for other risk events.

21.     Further work on these matters will be brought back to council through the Revenue and Financing Policy and Financial Strategy.  This will include a full analysis across financial limits set within the financial strategy.

 

Strategic / Statutory Context

22.     This report outlines financial challenges and options for further investigation as part of the LTP.

Options Analysis

23.     There are no options presented as part of this report

Financial Considerations

24.     The financial information presented here will be updated over the next few months as project costings are completed and draft LTP budgets are prepared.

Legal Implications / Risks

25.     There are no legal implications or risks associated with this report.  However, consideration of rates changes and other funding and financing options need to follow the requirements of the Local Government Act 2002.

Consultation / Engagement

26.     Funding and Financing options to support expenditure proposals in the LTP along with the Financial Strategy and Revenue and Financing Policy will be incorporated in the consultation document to be consulted on as part of the LTP.  Prior to this key groups and organisations affected by the LTP and funding and financing options will be approached through a process of engagement prior to the formal consultation process.

Significance

27.     This report is for information and to seek guidance from council on topics for further investigation.  It is not significant in terms of the Significance and Engagement policy

Next Steps

28.     Further work on the financials and the funding and financing options will be brought to Council through the Revenue and Financing Policy and the Financial Strategy.

Attachments

Nil


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 

9.5         Quarter 4 Local Government Official Information Requests and Mayor and Councillors' Requests

File Number:           A11835141

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 Councillors’ requests over the fourth quarter (Q4) from 1 April to 30 June 2020.

Recommendations

That the Finance, Audit and Risk Committee:

(a)     Receives the report Quarter 4 Local Government Official Information Requests and Mayor and Councillors’ Requests.

 

 

LGOIMA rEQUESTS

2.       A total of 77 requests were received in Q4 (73 LGOIMA and four Privacy Act requests), compared with 38 requests received in Q3 (34 LGOIMA and four Privacy Act requests). This is an increase of 103% from the previous quarter.

 

3.       Over the entire financial year 1 July 2019 – 30 June 2020, a total of 285 information requests were received. These are summarised by quarter in the table below. These figures do not include follow-up requests.

 

 

LGOIMA and Privacy Act requests in the 2019/20 financial year – by quarter, type and total

 

Quarter

LGOIMA

Privacy Act

both

Totals

1

98

2

1

101

2

67

1

1

69

3

34

4

0

38

4

73

4

0

77

 

273

11

1

285

 

4.       There are no requests made in Q4 that are still to be finalised. 10 requests made in Q4 had the response time extended, compared with two in Q3. Six of these extensions were for extensive LGOIMA requests for copies of the Mayor and Councillors’ texts and emails.

 

5.       Over the entire financial year, a total of 20 requests had their response time extended.

 

6.       15 requests made in Q4 were partially withheld and four requests were refused. One request was transferred to another government agency.

7.       Over the entire financial year, 56 requests were partially withheld and 11 requests were refused. Six requests were transferred to other government agencies.

8.       More analysis of the LGOIMA data for Q4 and the 2019/20 financial year is detailed in the pie graphs below.

9.       Nine requesters made multiple requests (two or more). Two of these requesters made more than five requests and the remaining seven requesters made three requests each. Multiple requests comprised 43% of the total requests made in Q4.
Over the entire financial year, multiple requests comprised 34% of the total information requests made.

10.     In relation to information requests made in Q4, we have not been notified of any complaints by the Office of the Ombudsman or the Office of the Privacy Commissioner.

11.     Over the entire financial year, three complaints were notified to us by the Office of the Ombudsman and one was notified to us by the Office of the Privacy Commissioner. The three Ombudsman complaints have been responded to, however we have yet to receive confirmation that the files have been closed. The file for the privacy complaint has been closed.

12.     100% of LGOIMA and Privacy Act requests responded to in Q4 were within the statutory timeframes, compared with 93% in Q3. Over the entire financial year, 98% of requests were responded to within statutory timeframes.

 

13.     We continue to proactively publish LGOIMA responses on the TCC website that are considered to be of interest to the community.

14.     The Office of the Ombudsman investigation is still in the process of being finalised and we do not have a confirmed date for the release of the provisional opinion.  The delay has been due to Covid-19 priorities for the Office of the Ombudsman. This has been reported to the Projects, Services and Operations Committee. The provisional opinion will be available for the Council to provide management comments in response to any of the recommendations.  The Ombudsman’s Office will consider those comments before publishing a final report, which is tabled in Parliament. It is expected that the report will set-out a series of recommendations and the in-house working party will pick these up and progress them.

 

Mayor and Councillor Requests

 

15.     Democracy Services received 208 Mayor and Councillor queries in Q4, compared with 261 in Q3. This is a decrease of 20%. There are no outstanding Q4 queries.

 

16.     Over the entire financial year, a total of 658 Mayor and Councillor queries were received by Democracy Services. This figure does not include follow-up requests. These are summarised by quarter in the table below:

 

 

 

 

 


Mayor and Councillor queries in the 2019/20 financial year*

Quarter

Totals

1

112

2

77

3

261

4

208

 

658

 

 

 

 

 

 

 

 

 

 

*Note: these exclude those queries managed by the Mayoral Office

17.     More detailed analysis of the Mayor and Councillor queries for Q4 and the 2019/20 financial year is detailed in the pie graphs below:


 

 

Q4 Official information requests (LGOIMA, Privacy Act requests) - Graphs

 

           

 

 

 

 

2019/20 Total Official Information Requests (LGOIMA & Privacy Act requests) – Graphs

 

 

 

 

 

Q4 Mayor and Councillor queries – Graphs

 



 

 

 

2019/20 Total Mayor and Councillor Queries – Graphs

 

 

 

Attachments

Nil    


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 

10          Discussion of Late Items


Finance, Audit and Risk Committee Meeting Agenda

22 September 2020

 

11          Public Excluded Session  

RESOLUTION TO EXCLUDE THE PUBLIC

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:

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under section 48 for the passing of this resolution

11.1 - Public Excluded Minutes of the Finance, Audit and Risk Committee Meeting held on 12 May 2020

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)(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)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

s48(1)(a) - 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

11.2 - Litigation Report

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)

s48(1)(a) - 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

11.3 - Corporate Risk Register - Quarterly Update

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)

s48(1)(a) - 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

11.4 - Quarterly Cyber Security Report - Q4 2020

s7(2)(c)(i) - the withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information, or information from the same source, and it is in the public interest that such information should continue to be supplied

s7(2)(c)(ii) - the withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely otherwise to damage the public interest

s48(1)(a) - 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

 

 

 



[1] See pages 16 to 18 of Attachment 1 for an explanation of the survey’s assessment of overall satisfaction

[2] See pages 30 to 33 of Attachment 1 for a summary of the reputation benchmark results

[3] See page 37 of Attachment 1 for the start of the core deliverables section

[4] See page 23 of Attachment 1 for the summary of results for core deliverables