Agenda of Council meeting - Wednesday, 21 December 2022

Council Meeting Agenda

21 December 2022

MINUTES OF A Council Meeting OF THE Central Otago District Council
HELD AT Ngā Hau e Whā, William Fraser Building, 1 Dunorling Street, Alexandra
AND LIVE STREAMED VIA MICROSOFT TEAMS ON Wednesday, 14 December 2022 COMMENCING AT 10.31 am

PRESENT: Cr N Gillespie (Chair), Cr T Alley, Cr L Claridge, Cr I Cooney, Cr S Duncan, Cr S Feinerman, Cr C Laws, Cr M McPherson, Cr T Paterson

IN ATTENDANCE: S Jacobs (Chief Executive Officer), S Righarts (Group Manager - Business Support), D Rushbrook (Group Manager - Community Vision), D Scoones (Group Manager - Community Experience), L van der Voort (Group Manager - Planning and Infrastructure), L Fleck (General Manager – People and Culture), J Muir (Three Waters Director), S Finlay (Chief Financial Officer), D McKewen (Accountant), A Rodgers (Principal Policy Planner), D Beange (Welcoming Communities Coordinator), C Green (Water Services Accountant), P Penno (Community and Engagement Manager), R Williams (Community Development Advisor), M De Cort (Communications Coordinator), W McEnteer (Governance Manager)

Note: In the absence of His Worship the Mayor, the Deputy Mayor assumed the Chair.

Note: Cr Alley gave a karakia to begin the meeting.

1 Apologies

Apology

Resolution

Moved: Alley

Seconded: McPherson

That the apologies received from Crs Browne and McKinlay and from His Worship the Mayor be accepted.

Carried

2 Public Forum

There was no public forum.

Note: Cr Paterson joined the meeting at 10.33 am.

3 Confirmation of Minutes

Resolution

Moved: Feinerman

Seconded: Laws

That the public minutes of the Ordinary Council Meeting held on 9 November 2022 be confirmed as a true and correct record.

Carried

4 Declaration of Interest

Members were reminded of their obligations in respect of declaring any interests. There were no further declarations of interest.

Note: With the permission of the meeting, item 22.10.12 was moved earlier in the meeting.

5 Mayor’s Report

22.10.12 Mayor's Report

Resolution

Moved: Gillespie

Seconded: Duncan

That the Council receives the report.

Carried

6 Reports

22.10.2 Private Plan Change 21 - Fulton Hogan, Parkburn

To consider the acceptance and processing of proposed Private Plan Change 21.

Resolution

Moved: Alley

Seconded: Paterson

That the Council

A. Receives the report and accepts the level of significance.

B. Agrees to accept and process the request as a private plan change and proceed to notify the request, under clause 26 of the First Schedule to the Resource Management Act 1991.

Carried

22.10.3 Plan Change 22 - Dark Sky

To consider the notification of proposed Plan Change 22 in accordance with Clause 5 of the first Schedule to the Resource Management Act 1991.

After discussion it was agreed that the plan change should come back to Council after it had been reviewed by Aukaha and before it was notified.

Resolution

Moved: Claridge

Seconded: Cooney

That the Council

A. Receives the report and accepts the level of significance.

B. Notes that the plan change will come back to Council after consultation with Aukaha.

Carried

Note: Cr Alley assumed the Chair as the Community Vision and Experience portfolio lead.

22.10.4 Welcoming Communities Annual Report

To inform Council of the progress made in the Central Otago Welcoming Communities programme in the last year and to present the three-year Welcoming Plan.

Resolution

Moved: Alley

Seconded: Paterson

That the report be received.

Carried

Note: Cr Laws assumed the Chair as the Three Waters and Waste portfolio deputy lead.

22.10.5 Three Waters Depreciation Increase

To consider the increase in depreciation expense relating to three waters assets.

Resolution

Moved: McPherson

Seconded: Claridge

That the Council

A. Receives the report and accepts the level of significance.

B. Notes the depreciation effect arising from the 30 June 2022 three waters asset valuation.

C. Approves adjusting the depreciation expense to ensure rate funded depreciation only covers the three waters renewals program in the Draft 2023-24 Annual Plan. This will reduce the rate funded depreciation by approximately $2.1M and is consistent with the 2021 Long-Term Plan.

Carried

Note: Cr Duncan assumed the Chair as the Roading portfolio lead.

22.10.6 Roading Depreciation Increase Impact on Annual Plan 2023-24

To consider the increase in rate funded depreciation expense relating to roading assets.

Resolution

Moved: Paterson

Seconded: Laws

That the Council

A. Receives the report and accepts the level of significance.

B. Note the depreciation effect arising from the 30 June 2022 roading asset valuation.

C. Resolves to adjust the depreciation expense to ensure rate funded depreciation only covers the roading capital works programme in the draft 2023-24 Annual Plan as presented. This will reduce the rate funded depreciation by approximately $1.2M (and therefore reduce rates by 4.07%) which is consistent with previous years treatment.

Carried

Note: Cr Gillespie resumed the Chair.

Note: With the permission of the meeting, item 22.10.8 was moved earlier in the meeting.

22.10.8 Financial Report For The Period Ending 31 October 2022

To consider the financial performance for the period ending 31 October 2022.

Resolution

Moved: Alley

Seconded: Cooney

That the report be received.

Carried

Note: Matthew Wilson, Deanna Macdonald and Elaine Wilson from Aon Insurance joined the meeting for item 22.10.7.

22.10.7 Insurance Programme Renewal

To consider Council’s insurance programme renewal and related increase in insurance premium of $212,466.

After discussion it was agreed that the resolution should specifically state where the money for the increase would come from.

Resolution

Moved: Alley

Seconded: McPherson

That the Council

A. Receives the report and accepts the level of significance.

B. Approves to increase the budget for the current financial year through the reforecast process to accommodate the insurance renewal premiums as outlined in the attached reports up to a value of $212,466. The increase for FY 2023 to be funded by an overspend and FY 2024 through the annual plan process.

C. Authorises the Chief Executive Officer to continue negotiations with Aon to seek reductions in the premium prior to final payment date of 21 December 2022.

Carried

Note: Cr Duncan left at 12.04 pm and returned at 12.06 pm.

22.10.9 Development of a District Vision and Wellbeing Framework

To provide an overview of the development of a district wide, 50-year vision and wellbeing framework.

After discussion it was agreed that Cr Alley and Feinerman would act as liaison for the external advisory group as the Chair and Deputy Chair of the Community Vision and Experience portfolio respectively.

Resolution

Moved: Duncan

Seconded: Claridge

That the Council

A. Receives the report and accepts the level of significance.

B. Notes the update on the development of a district vision and wellbeing framework.

C. Appoints Crs Alley and Feinerman to act as liaison to the external advisory group.

Carried

Note: With the permission of the meeting, item 22.10.11 was moved earlier in the meeting.

22.10.11 Activity Update from Central Otago Museums Trust

To review the progress and overall performance of the Central Otago Museums Trust, following its first year of operation.

Resolution

Moved: Cooney

Seconded: Feinerman

That the report be received.

Carried

Note: The meeting adjourned at 12.14 pm and returned at 12.47 pm.

22.10.10 Future for Local Government Submission

To consider the process for the Future for Local Government submission.

Resolution

Moved: Alley

Seconded: Laws

That the report be received.

Carried

7 Status Reports

22.10.13 December 2022 Governance Report

To report on items of general interest, receive minutes and updates from key organisations, consider Council’s forward work programme, business plan and status report updates.

Resolution

Moved: Feinerman

Seconded: Duncan

That the Council receives the report.

Carried

8 Community Board Minutes

22.10.14 Minutes of the Vincent Community Board Meeting held on 31 October 2022

Resolution

Moved: McPherson

Seconded: Alley

That the unconfirmed Minutes of the Vincent Community Board Meeting held on 31 October 2022 be noted.

Carried

22.10.15 Minutes of the Maniototo Community Board Meeting held on 1 November 2022

Resolution

Moved: McPherson

Seconded: Alley

That the unconfirmed Minutes of the Maniototo Community Board Meeting held on 1 November 2022 be noted.

Carried

22.10.16 Minutes of the Teviot Valley Community Board Meeting held on 2 November 2022

Resolution

Moved: McPherson

Seconded: Alley

That the unconfirmed Minutes of the Teviot Valley Community Board Meeting held on 2 November 2022 be noted.

Carried

22.10.17 Minutes of the Extraordinary Cromwell Community Board Meeting held on 10 November 2022

Resolution

Moved: McPherson

Seconded: Alley

That the unconfirmed Minutes of the Extraordinary Cromwell Community Board Meeting held on 10 November 2022 be noted.

Carried

22.10.18 Minutes of the Vincent Community Board Meeting held on 22 November 2022

Resolution

Moved: McPherson

Seconded: Alley

That the unconfirmed Minutes of the Vincent Community Board Meeting held on 22 November 2022 be noted.

Carried

22.10.19 Minutes of the Teviot Valley Community Board Meeting held on 24 November 2022

Resolution

Moved: McPherson

Seconded: Alley

That the unconfirmed Minutes of the Teviot Valley Community Board Meeting held on 24 November 2022 be noted.

Carried

22.10.20 Minutes of the Cromwell Community Board Meeting held on 28 November 2022

Resolution

Moved: McPherson

Seconded: Alley

That the unconfirmed Minutes of the Cromwell Community Board Meeting held on 28 November 2022 be noted.

Carried

9 Committee Minutes

22.10.21 Minutes of the Assessment Committee Meeting held on 22 November 2022

Resolution

Moved: McPherson

Seconded: Alley

That the unconfirmed Minutes of the Assessment Committee Meeting held on 22 November 2022 be noted.

Carried

10 Date of Next Meeting

The date of the next scheduled meeting is 21 December 2022.

11 Resolution to Exclude the Public

Resolution

Moved: Gillespie

Seconded: Paterson

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
Confidential Minutes of Ordinary Council Meeting	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)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
22.10.22 - Cromwell Town Centre Project	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)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
22.10.23 - December 2022 Confidential Governance Report	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)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
22.10.24 - Confidential Minutes of the Vincent Community Board Meeting held on 22 November 2022	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)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
22.10.25 - Confidential Minutes of the Teviot Valley Community Board Meeting held on 24 November 2022	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)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
22.10.26 - Confidential Minutes of the Cromwell Community Board Meeting held on 28 November 2022	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)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

B. That Neil Penney and Marilyn Brown from NMA be able to stay for item 22.10.22 because of their knowledge of the topic.

Carried

The public were excluded at 12.56 pm and the meeting closed at 1.35 pm.

Council meeting Agenda

21 December 2022

5 Reports

22.11.2 Adoption of the audited Annual Report 2021/22

Doc ID: 597103

1. Purpose of Report

To adopt the audited 2021/22 Annual Report.

Recommendations

A. That the Council receives the report and accepts the level of significance.

B. Recommend that Council adopt the 2021/22 Annual Report subject to Audit New Zealand issuing an audit opinion, and subject to any further amendments requested by Audit New Zealand.

2. Background

Under s98 of the Local Government Act 2002, Council must prepare a report assessing its performance against the activities and intended levels of performance, indicative costs, and sources of funds as set out in the Long-term Plan 2021-31 and long-term plan year one 2021/22 (LTP Yr1). This report contains specific financial statements as well as the auditor’s report on those statements and on the performance targets by which performance has been judged. Council adopts this report as part of the normal annual calendar of events. This annual report must be adopted by 31 December 2022 if Council wishes to meet its legislative timeframe.

The draft annual report was presented to Audit and Risk committee on the 27^th September 2022. Since then, there have been no changes to the face of the accounts for the Annual Report 2021/22. Although there have been a few amendments to the notes, this has not changed the integrity of the Annual Report.

Outlined below are the results of the Annual Report that were presented to the Audit and Risk Committee, updated with these minor amendments.

At the date of writing this report, Council has not yet received the verbal clearance from Audit New Zealand. Staff continue to work with Audit New Zealand on the basis that verbal clearance will be received before the Council meeting on the 21^st December 2022. The latest copy of the Annual Report 2021/22 is attached to this agenda for review. Once clearance has been received a final copy will be made available for review.

3. Discussion

The Government has recognised the shortage of auditors in New Zealand and has extended the statutory reporting deadlines for all local councils from 31 October 2022 to 31 December 2022.

Therefore, all councils will have an extension from the Office of the Auditor-General to the legislative deadline for adopting their annual report until 31 December 2022. The Annual Report will be made available to the public within one month after adoption and a Summary Annual Report will also be prepared subject to Audit New Zealand’s timeline.

4. Variances to the Long-term Plan

The end of year result has a surplus of $28.39M, compared to the reported budget of $7.644M in the 2021/22 long-term plan year one. The most significant variances in income were subsidies and grants, vested assets and land sales.

Subsidies and grants

Subsidies and grants income is $8.121M favourable against budget. The bulk of the additional income is from the stimulus funding for Three Waters amounting to $8.098M. Additional grants were received from Strategic Tourism Assets Protection Programme (STAPP) and Ministry of Business, Innovation and Enterprise (MBIE). The Waka Kotahi New Zealand Transport Agency subsidy was lower than expected by ($1.626M).

Vested assets

Additional revenue of $10.032M was received from vested assets. The bulk of the assets attributed to this included the subdivisions at Cromwell and Alexandra being Terrace Park, Wooing Tree and Dunstan Park.

Land sales

The 2021/22 land sales were $10.556M lower than the expected budget by ($6.730M). This was due to the timing of land sales for the Dunstan Park and Cemetery Road subdivisions. Dunstan Park released the titles for stage one and two of the subdivision. Cemetery Road stage one sections have all been sold.

Details of all unaudited variances can be found below:

VARIANCE REPORT for the year ended 30 June 2022	2021/22 Actual $000	2021/22 LTP Yr1 $000	2021/22 Variance Favourable / (Unfavourable) $000
REVENUE
Revenue from non-exchange transactions
Rates	35,545	34,900	645
Subsidies and Grants	15,424	7,303	8,121
Regulatory fees	2,399	1,937	462
User fees and other income	5,677	5,095	582
Assets Found	-	-	-
Vested assets	10,032	-	10,032
Valuation gains / (losses)	(140)	-	(140)
Development and financial contributions	2,843	2,104	739
Revenue from exchange transactions
Direct charges revenue – full cost recovery	340	383	(43)
Rental revenue	458	432	26
Interest	89	388	(299)
Dividends	-	-	-
Profit on sale of assets	52	-	52
Land Sales	10,556	17,286	(6,730)
Gains on revaluation of investment properties	806		806
TOTAL REVENUE	84,081	69,829	14,252

EXPENDITURE
Community, Economic and Strategic Development	3,983	3,738	(245)
Environmental Services	6,100	5,736	(364)
Governance and Corporate Services	1,096	1,635	538
Planning and Regulatory	6,108	5,660	(448)
Pools Parks and Cemeteries	6,341	7,120	779
Property and Community Facilities	10,970	17,560	6,591
Roading	9,004	9,191	188
Service Centres and Libraries	1,539	1,638	99
Stormwater	652	545	(107)
Wastewater	4,602	3,954	(648)
Water	5,291	5,406	115
TOTAL EXPENDITURE	55,685	62,185	6,498

NET SURPLUS / (DEFICIT)	28,396	7,644	20,751

Other revenue variances

Rates

Rates income is on par with the 2021/22 LTP Yr1 with an increase of $645k. This is due to the difference between the adopted LTP Yr1 and the actual setting of the rates at 1 July 2021, giving a total $397k. Additional increases are for penalties and metered water charges.

User fees and other income

User fees revenue of $5.677M has a favourable variance of $582k compared to the 2021/22 LTP Yr1. The budget included the Tourism Infrastructure Funding (TIF) for the new Clyde toilet and Miners Lane carparks.

Development contributions

Development contributions has a favourable variance of $739k. Greater than expected contributions were linked to Cromwell and Vincent water and wastewater along with district roading contributions.

5. Capital expenditure

Capital expenditure of $40.75M is higher than the 2021/22 LTP Yr1 budget of $30.8M by $9.9M. The overspend in water of $8.611M and wastewater of $7.224M is off-set by underspends in property and community facilities of $4.214M and roading of $1.859M.

2020/21 Actual $000	Capital Expenditure	2021/22 LTP Yr1 $000	2021/22 Actual $000	Variance $000
2,375	Water	7,610	16,221	(8,611)
4,088	Wastewater	6,253	13,477	(7,224)
629	Stormwater	380	448	(68)
7,358	Roading	7,420	5,561	1,859
410	Environmental Services	382	407	(25)
237	Planning, Regulatory and Community Development	248	-	248
1,052	Pools, Parks and Cemeteries	1,712	2,209	(496)
7,306	Property and Community Facilities	6,058	1,844	4,214
151	Service Centres and Libraries	214	189	24
-	Regional Identity, Tourism and Economic Development	-	-	-
533	Governance and Corporate Services	556	401	155
24,139		30,834	40,757	(9,923)

Three Waters

The unfavourable variances are due to the timing of construction projects. The main drivers include the Lake Dunstan water supply, water treatment plant and capacity upgrades, Clyde wastewater improvements and water stimulus fund projects.

Roading

The favourable variance of $1.859M is due to the timing of the budget and work programme. Roading projects include footpath, carpark, drainage and structural renewals, minor improvements, sealed and gravel road renewals and drainage renewals.

Property and Community Facilities

The favourable variance of $4.214M is mainly due to the timing of the Cromwell Town Centre projects which is currently under budget. The project includes the Memorial Hall project, Cromwell administration buildings projects and grounds, along with paths and fences around the Town Centre.

6. Statement of Financial Position analysis

Current assets have reduced overall by $10.163M with less funds available for term deposits. Cash flows have been managed internally which has meant Council only borrowed $5M as opposed to $25M that was budgeted in the LTP Yr1 externally from Local Government Funding Agency (LGFA). Capital expenditure has increased significantly from the previous year with $40.757M spent compared to $24.139M in 2020/21. Major projects include the Lake Dunstan water supply, water treatment plant and capacity upgrades, Clyde wastewater improvements and water stimulus fund projects.

Current liabilities have increased from the 2021/22 LTP Yr1 budget, with an increase in payables and deferred revenue of $5.257M. Significant costs have been incurred with the Clyde Reticulation project along with the Lake Dunstan water supply project.

There is an overall decrease of $26.612M in working capital at $600k, in comparison to the 2021/22 budgeted LTP Yr1of $27.212M, mainly due to increased capital spend.

The overall result is a net asset position of $1.094B, which is $196M more than budgeted in the 2021/2022 LTP Yr1. The most significant impact is the revaluation of property, plant and equipment totalling $167M. The most significant valuation increases have occurred in roading of $55.9M, water assets $23.3M, wastewater assets $15.2M land $42.9M and buildings $10.3M.

Roading $55M: (per valuation report from Rationale)

Council’s roading assets were valued at $749M as at 30 June 2022. This represents an increase of $95.4M when compared with the 1 July 2020 valuation. $76.7m (80%) of this increase was attributable to increases in unit rate replacement costs.

The RAMM Road Construction Index was used as the default treatment for escalating unit rate replacement costs. This resulted in the replacement cost of most assets increasing by 12.4%. Special consideration was given to particular asset classes. These are summarised as follows:

· The unit rates applied to the valuation of bridges were increased by 17.4%, in line with Waka Kotahi’s Bridge Index.

· The unit rate applied to the valuation of asphalt sealed pavement surfaces was increased by 43.8%. This unit rate was calculated based on recent construction costs incurred by council’s contractor, Fulton Hogan.

· The unit rate applied to the valuation of eco seals was increased by 27.4%. This was also based on recent construction costs incurred by Fulton Hogan.

The following graph shows the main increase being $76.7M inflation.

Land $42.9M and Buildings $10.3M

Land and property values have increased based on market indications and demand. These valuations may reduce in the future due to the volatility of the current market.

Water assets $23.3M and wastewater $15.2M

Pipe values have increased by 30% and above ground assets have also had significant increases in value. This year, site audits were performed with additional assets being found impacting on the increased valuations.

7. Statement of Financial Position

2020/21 Actual $000	Statement of Financial Position for the year ended 30 June 2022	Notes	2021/22 LTP Yr1 $000	2021/22 Actual $000
	EQUITY
411,812	Accumulated funds	10	401,564	441,222
487,465	Property revaluation reserve	10	496,629	654,513
(17)	Fair value through other comprehensive income revenue reserve	10	(20)	(14)
80	Restricted reserves	10	80	80
899,340	Total equity		898,253	1,094,886
	REPRESENTED BY:
	Current assets
5,014	Cash and cash equivalents	11	19,896	6,735
11,500	Other financial assets	12	8,000	-
4,852	Receivables	13	625	4,743
-	Non Current assets held for sale		3,171	-
5,394	Inventories	14	1,509	5,119
26,760	Total current assets		33,201	16,597
	Less current liabilities
256	Agency and deposits	15	273	273
13,254	Payables and deferred revenue	15	4,706	9,963
673	Employee entitlements	16	1,010	761
-	Borrowings and other financial liabilities		-	5,000
14,183	Total current liabilities		5,988	15,997
12,577	Working capital		27,212	600
	Non-current assets
111	Available for sale financial assets	12	109	114
282	Loans and receivables	17	333	231
26,032	Work in Progress	19	26,032	48,471
852,710	Property, plant and equipment	19	865,260	1,037,093
1,272	Intangible assets	20	2,271	1,351
431	Forestry assets	22	357	291
5,925	Investment property	23	1,683	6,735
886,763	Total non-current assets		896,045	1,094,286
	Less non-current liabilities
-	Provisions	25	5	-
-	Borrowings and other financial liabilities		25,000	-
-	Total non-current liabilities		25,005	-

899,340	Net assets (assets minus liabilities)		898,253	1,094,886

Rates receivable

Rates receivable	2021/22				2020/21
	Gross	Impairment		Net	Gross	Impairment	Net
	$000	$000		$000	$000	$000	$000
Reporting year ended 30 June
Current	500	(56)		443	517	(46)	471
Unpaid 1 year	136	(46)		89	83	(39)	45
Unpaid 2 years	72	(39)		34	48	(31)	17
Unpaid 3 years and older	242	(149)		93	160	(118)	42
Total	949		(290)	659	810	(234)	576

Of the rates receivable, there are certain properties where the owners have formally or informally abandoned the land. Outstanding rates on these properties are treated as impaired. Other outstanding rates receivables are not impaired as council has access to various powers under the Local Government (Rating) Act 2002 for collection.

All overdue receivables have been assessed for impairment and appropriate provisions applied. Council holds no collateral as security or other credit enhancements over receivables that rare either past due or impaired. The impairment provision for non-rates receivables has been calculated by a review of specific debtors.

There is no concentration of credit risk with respect to receivables due to the dispersed customer base.

Sundry accounts receivable

Sundry accounts receivables of $1.988M includes Waka Kotahi New Zealand Transport Agency $266k and water stimulus funding $473k, which comprises 37% of the sundry receivables balance.

The age of outstanding sundry accounts receivable is detailed below:

	2021/22				2020/21
	Gross	Impairment	Net		Gross	Impairment		Net
	$000	$000	$000		$000	$000		$000
Sundry Accounts receivable
Current	1,836	-		1,836	2,159		-		2,159
Unpaid 1 months	30	-		30	56		-		56
Unpaid 2 months	23	-		23	12		-		12
Unpaid 3 months and older	98	(22)		76	154		(22)		133
Total	1,988	(22)		1,965	2,382		(22)		2,360

Debtors

Of the receivables in excess of three months, the following debtors make up $54k of the $98k balance (55%). GF & KM Doran had a balance of $27k for development contributions which has since been paid and A & M Erskine $16k for resource consent applications. Mervyn Shaw still has an outstanding balance of $5.1k with a payment plan in place. Top Shelf Productions owes $5.7k however the company has now gone into liquidation. This has been sent to receivable management and liquidators were appointed in March 2022. There are a further 59 outstanding debtors with a balance under $5k which are currently being followed up.

8. Additional disclosure notes

Contingent liabilities

The Council has no contingent liabilities as at 30 June 2022.

Severance agreements

Pursuant to Schedule 10 Part 3 (33) of the Local Government Act 2002, the Council is required to disclose the cost of any severance agreement with an employee. There was one severance payment in 2021/2022.

9. Performance measures overview

As part of the ten-year long-term plan, council is required to set performance measures. Every year, as part of council’s annual budgeting process, these measures are reviewed, although council is limited in what can be changed between long-term plan cycles. This allows the community to see the intended levels of service and how these will be measured. As part of the annual report, council reports actual results achieved against these targets. Achievement of these targets is reported alongside the financial results for each activity. A summary of the individual results is included below:

	2021/22 Performance Measure Results						2020/21
Group of Activities	No. of Targets	Forecast target	No. achieved	No. not achieved	% Achieved	% Achieved
Water	9	8	8	1	89%	58%
Wastewater	8	6	5	3	63%	43%
Stormwater	8	8	7	1	88%	100%
Roading	7	7	4	3	57%	67%
Environmental Services	4	1	2	2	50%	50%
Planning & Regulatory	8	6	5	3	63%	29%
Pools, Parks & Cemeteries	6	2	4	2	67%	33%
Property & Community Facilities	6	4	3	3	50%	71%
Service Centre’s & Libraries	7	3	2	5	29%	43%
Community, Economic & Strategic Development	6	3	1	5	17%	0%
Governance & Corporate Services	4	4	3	1	75%	0%
Totals	73	53	44	29	60%	53%

The details of the measures and explanations for why some targets where not achieved is contained in the activity sections in the attached draft 2021/22 Annual Report. The 2021/22 results were 60% compared to 53% in 2020/21.

10. Next Steps

Any recommendations from Audit New Zealand will be assessed and staff will respond accordingly.

11. Attachments

Appendix 1 - Draft Annual Report 2021-22 ⇩

Report author:	Reviewed and authorised by:

Susan Finlay	Saskia Righarts
Chief Financial Officer	Group Manager - Business Support
15/12/2022	15/12/2022


AGENDA Ordinary Council Meeting Wednesday, 21 December 2022
Date:	Wednesday, 21 December 2022
Time:	10.00 am
Location:	Ngā Hau e Whā, William Fraser Building, 1 Dunorling Street, Alexandra (A link to the live stream will be available on the Central Otago District Council's website.)
Sanchia Jacobs Chief Executive Officer