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AGENDA
Ordinary Council Meeting Wednesday, 21 December 2022
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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.)
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Sanchia Jacobs Chief Executive Officer |
21 December 2022 |
Notice is hereby given that a Council Meeting will be held in Ngā Hau e Whā, William Fraser Building, 1 Dunorling Street, Alexandra and live streamed via Microsoft Teams on Wednesday, 21 December 2022 at 10.00 am. The link to the live stream will be available on the Central Otago District Council’s website.
Order Of Business
Ordinary Council Meeting - 14 December 2022
22.11.1 Declarations of Interest Register
22.11.2 Adoption of the audited Annual Report 2021/22
Members His Worship the Mayor T Cadogan (Chairperson), Cr N Gillespie, Cr T Alley, Cr S Browne, Cr L Claridge, Cr I Cooney, Cr S Duncan, Cr S Feinerman, Cr C Laws, Cr N McKinlay, Cr M McPherson, Cr T Paterson
In Attendence 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), J Muir (Three Waters Director), M De Cort (Communications Coordinator), W McEnteer (Governance Manager)
1 Apologies
2 Public Forum
Ordinary Council Meeting - 14 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.
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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.
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.
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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:
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.
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22.11.1 Declarations of Interest Register
Doc ID: 606888
1. Purpose
Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.
Appendix 1 - Declarations of Interest ⇩
21 December 2022 |
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.
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 27th 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 21st 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 |
2021/22 |
2021/22 $000 |
2021/22 $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.
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
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 |
Statement of Financial Position |
Notes |
2021/22 |
2021/22 |
|
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.
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
|
21 December 2022 |
The date of the next scheduled meeting is 25 January 2023.