CHRISTCHURCH CITY COUNCIL
CHRISTCHURCH CITY COUNCIL ANNUAL REPORT 1998
PAGE
MISSION STATEMENT 2
COUNCILLORS AND SENIOR STAFF 3
HIGHLIGHTS OF THE YEAR 4 - 8
FINANCIAL MANAGEMENT POLICIES 9
FINANCIAL HIGHLIGHTS 10
REPORT OF AUDIT OFFICE 11 - 12
CHRISTCHURCH CITY COUNCIL GROUP 13
CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE 14
CONSOLIDATED STATEMENT OF MOVEMENTS IN EQUITY 15
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 16 - 17
CONSOLIDATED STATEMENT OF CASH FLOWS 18
STATEMENT OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS 19 - 32
STATEMENTS OF OBJECTIVES AND SERVICE PERFORMANCE AND COST OF SERVICES OF
SIGNIFICANT ACTIVITIES 33 - 60
STATEMENTS OF COST OF SERVICE FOR INTERNAL SERVICE PROVIDERS 61
STATEMENTS OF OBJECTIVES AND SERVICE PERFORMANCE AND
COST OF SERVICES OF SUBSIDIARY, JOINT VENTURE AND ASSOCIATE ORGANISATIONS 62 - 77
EQUAL OPPORTUNITY POLICY 78 - 79
INDEX 80
The annual report and audited financial statements of Christchurch City Council, together with the report of Audit Office, were adopted by the Council on 27 November 1998. Published on 22 December 1998 by the Office of the City Manager Christchurch City Council, in compliance with S223E of the Local Government Act 1974 (as amended) PO Box 237, Christchurch, New Zealand. Tel: (03) 379 1660. Fax: (03) 379 7786
1 THE MISSION STATEMENT OF THE CHRISTCHURCH CITY COUNCIL
To provide a system of local government for the community of Christchurch which:
• is responsive to local needs;
• gives strong expression to local identity;
• strikes a balance between democracy, effectiveness, and efficiency;
• is highly accountable for its actions;
• advocates in the interest of the whole community;
• adds value and employment to the city’s economy;
• enhances the quality of the city’s environment;
• is based on sustainable management principles;
• efficiently delivers high quality services;
• maintains an effective working partnership with central government and the regional unit of local government;
• is both a good corporate citizen and a good employer.
TE KAUPAPA E WHAIA E TE KAUNIHERA O TE TAONE NUI O OTAUTAHI
Kia whakaritea tetahi ara mo te kawanatanga-a-taone mo nga iwi o otautahi • kia aro atu ki nga hiahia-a-rohe
• kia tino whakaataria nga ahuatanga o te taone nei
• kia whakaritea te kawanatanga horite kia tika tonu, kia kakama hoki
• kia whakaae ki te hiki pikau mo ana mahi katoa
• hei mangai mo te nohoanga tangata whanui
• kia whakanuitia te whai painga o te whakahaerenga moni me etahi turanga mahi
• kia whakapai i te takiwa o te taone nui
• kia ukaukaina nga kaupapa o te mahi whakahaere
• kia hoatu nga ratonga pai rawa atu
• kia mahi ngatahi me te kawanatanga me te kawanatanga-a-rohe hoki • kia pai te whakahaere o tana umanga, kia tika hoki te aronga ki ana kaimahi
2 CHRISTCHURCH CITY COUNCIL
As at 30 June 1998
Mayor Vicki Buck
Deputy Mayor Councillor Morgan Fahey OBE MB ChB MRCGP FRNZCGP
Councillors Oscar Alpers LLB Notary Public Pat Harrow Dip Hort Carole Anderton Ian Howell OBE FNZIM Graham Berry BSc Alister James LLB David Buist Lesley Keast JP David Close MA (NZ) MA (Essex) Charles Manning MA (S’ton) Graham Condon QSM Garry Moore ACA David Cox Margaret Murray JP TTC Anna Crighton JP MA (Hons) Denis O’Rourke LLB Newton Dodge Gail Sheriff Carole Evans QSO JP Barbara Stewart Gordon Freeman JP Ron Wright JP MPMI Ishwar Ganda
Membership of Community Boards
Burwood-Pegasus Shirley-Papanui David Dobbie (Chair) Yvonne Palmer (Chair)
Clare Duff Don Rowlands Judith Bruce Anne Carroll
Carole Evans (Cr) Gail Sherriff (Cr) * Graham Condon (Cr) Newton Dodge (Cr)
David East Jack Travis Gordon Freeman (Cr) Garry Moore (Cr)
Alister James (Cr) Chrissie Williams Stephen Wright Sue Wells BA
Fendalton-Waimairi Spreydon-Heathcote Barbara Stewart (Cr) (Chair) Oscar Alpers (Cr) (Chair) Val Carter Keith Nuttall JP MPS ANZCP * Carole Anderton (Cr) Sonia Gill BA ATCL AREINZ Graham Catley Ian Rivers Phil Clearwater MA (Hons) Ian Howell (Cr) Cheryl Colley Hazel Tait David Drayton Trish Hunter Pat Harrow (Cr) Ron Wright (Cr) Morgan Fahey (Cr) Ann Lewis BA
Hagley-Ferrymead Riccarton-Wigram Anna Crighton (Cr)(Chair) David Buist (Cr) Chair Heather Brown Aaron O’Brien BA *Graham Berry (Cr) Mary Corbett JP TTC David Cox (Cr) Richard Boulton BSc(Hons) BCA Helen Broughton MA Dip Ed (GC) Bob Todd OBE JP Charles Manning (Cr) Mark Kunnen Lesley Keast (Cr) Liz McRostie John Freeman JP MA DipTchgTTC Ishwar Ganda (Cr) Bob Shearing Mike Mora
* Denotes member elected to both Council and Community Board
Senior Management City Manager Mike Richardson MA(Econ) MA(Town&Reg Planning) MRTPI FRS FNZIM Director of Finance Bob Lineham BCom FCA AFNZIM MILAM Director of Human Resources Dorothea Brown NZLA Cert FNZLA Director of Operations Ken Lawn BA DipTP MNZPI Director of Policy Jonathan Fletcher BE(Hons) ME(Env Eng) MPP MIPENZ MNZAE
3 HIGHLIGHTS OF THE YEAR
REPORT FOR THE YEAR ENDED 30 JUNE 1998 cost of approximately $34 million. It is appropriate to This Annual report provides an opportunity for the Council acknowledge the significant sponsorship contributions to report on what has been achieved during the year ended 30 received, in particular those from the NZ Lotteries Board and June 1998. It enables the Community to judge the Council’s the Community Trust. performance in achieving the objectives and performance set Christchurch City Facilities Limited was established during out in its Plan, which was published fifteen months ago. the year. This Council owned company owns, on behalf of the Council, the Convention Centre, WestpacTrust Centre and Christchurch a Good Place to Live also the lease of the Town Hall. The company has contracted The Council believes Christchurch continues to improve as the management of all three facilities to NCC (New Zealand) a great place to live and work and is aware that citizens also are Ltd, which is a joint venture company between NCC proud of the city and most contribute personally as well as Management and Development Ltd of Bangkok and collectively through the Council to this progress. Visitors also Addington Raceway of Christchurch. It is expected that generally recognise the beauty, culture and quality of life in operating costs will progressively reduce over the next few years Christchurch. as utilisation of the facilities increases. Every year the Council conducts a major survey of public Increased visitor numbers to Christchurch as a result of the opinion and once again in 1998 this survey indicated that 94% wide range of events will provide a significant economic of citizens are satisfied or very satisfied with Christchurch as a impact to the local economy and many new jobs. place to live, work and spend spare time. Economic Development and Employment The key to building communities in which people want to live is to have a Council, which leads by working with its More generally the Canterbury Development Corporation communities to help them achieve their priorities. To be able (CDC) is contracted as the Council’s economic development to do this well requires an ability and willingness to listen to the agency. In addition to providing a number of significant views of the community and residents. After much discussion support, networking and development services to industry, and research and consideration of options, the Council in education and employment programmes, it has managed December adopted a policy on Seeking Community Views. nearly 2400 young people looking for jobs. Of these, 42% This policy statement is designed to reflect the Council’s have been placed in to full time employment, training or commitment to being sensitive to community views while at further education. This significantly exceeds Government’s the same time confirming that it is the Council that has the target of 25% for such schemes. responsibility for making decisions. There is no doubt that The CDC has also administered other employment related community consultation processes play and will increasingly programmes through the Adult Employment programme (400 play an important part in the Council’s work as it seeks to positions filled) and through Community Grants, which provide quality governance for the Christchurch community. helped 22 groups to achieve outcomes not otherwise possible. SOCIAL - WELLBEING AND COMMUNITY HIGHLIGHTS Social Housing WestpacTrust Centre The Council has embarked on an exciting development programme to construct a further $8 million of affordable Although the WestpacTrust Centre was opened after the rental homes across the city. This will bring the Council’s conclusion of the June 1998 year, the substantial part of the housing portfolio to 2,660 rental units. This new programme work was completed in this year. This great indoor stadium/ has been developed following an indepth review of needs for entertainment facility can seat 8000 people and has the affordable housing within the city. The housing portfolio is potential to provide for a huge range of events from indoor managed without recourse to rates funding by reinvesting the sports, to trade shows, to international quality concerts. surplus on operations in further development and/or renewal This fine facility has been completed within budget for a of existing assets.
4 HIGHLIGHTS OF THE YEAR
Library Services Pioneer Pool and Centennial Pools This has been a significant year for the Canterbury Public Work has commenced on the indoor aquatic leisure centres Library with the issue of over 5.1 million books to 67% of at Pioneer Sports Stadium and Centennial Pool. Pioneer will adults and 80% of young people in the city. The pressure on include Christchurch’s first wave pool as well as a 25 metre five the Library continues to grow through popular demand. The lane training pool, associated gymnasia and other leisure future directions of the Library for the period to 2007 have features. These facilities will provide significant opportunities been extensively researched and adopted by the Council as the for water-based fun and fitness programmes in the city as well strategic direction for the Library in Christchurch. as filling a gap in provision in the south of Christchurch. On the building front, the Shirley Library was rebuilt and Jade Stadium opened for business only nine months after extensive damage by a fire. The business has grown significantly since the During the year the Council has investigated the ways in reopening. The rebuilt library provides a facility which for the which it can help to provide for a major upgrade of the former first time combines library and service centre functions, Lancaster Park in such a way that the new upgraded facility pointing the way to better integration of services for Council’s can be self-sustaining. Subsequently, Jade Stadium Limited customers. has been established as a 100% subsidiary of Council which will take over and manage the assets and the proposed The Central Library has also been extended and refurbished redevelopment. with the work being completed in November 1997. The increased space, new decor and new services have been greatly Art Gallery appreciated by over 100,000 people per month who visit the The new Art Gallery has moved a step closer with the Central Library. Provision is included in the Council’s Plan completion of the functional design brief and the launching of for a series of further improvements to the facilities in the a national architectural competition to select the Architects suburbs. through assessment of submitted art gallery designs. The Cathedral Square building which is scheduled to commence in October 2000 will be sited on land in Worcester Boulevard purchased, in The reconstruction of Cathedral Square commenced in part, through a generous grant from the Community Trust. February 1998 after many years in the planning stages. Cathedral Square is the city’s most “public face” and work has A fund raising committee has been established by support proceeded after extensive public consultation. It is scheduled groups to help raise additional funds to secure the necessary for completion in October 1999. external funding for the project. Sporting Success Youth Advocate The community turned out in force to welcome the During the year the Council appointed its first Youth victorious Canterbury Team and the Canterbury Crusaders Advocate. The appointment grew out of the work the Council after winning the 1997 NPC and 1998 Super 12 Rugby was undertaking on policies and priorities for young people in competitions. These parades were organised by the Council at Christchurch. It reflects the Council’s commitment to the short notice and drew huge crowds. view that young people are the future of the City and that the City needs to ensure that it is a good place not just for adults ‘Sport in Action’ events day at North Hagley Park was very but also for young people to live, play, work and learn. The well attended with a large variety of sports and recreation appointment of the Youth Advocate, together with the earlier activities available for the public to “have a go”. appointment of a Children’s Advocate, means that the Council Excellent summer weather saw a 67% increase in patronage now has advocates for the two groups in the community that at the Council’s outdoor swimming pools. do not have the right to vote. The Council continued to support sport in a variety of School Safety ways including the provision of sports grounds throughout the year. The Council has assisted with the development and implementation of an initial trial of fifteen pedestrian crossing facilities outside schools. “Kea” Crossings provide improved management of traffic at the school frontage during the periods when children are going to and from school. The success of the initial trial has resulted in five further sites being added during the year. To make the journey to and from schools safe for children, especially pedestrians and cyclists, the “Safe Routes to School” programme identified issues of concern to the school community. Surveying children is an important part of the process. Remedial measures are undertaken, using a combined engineering, education and enforcement approach. An evaluation of the programme has shown that it has been well received in the school community. A unique children’s cycle safety training programme has been developed. The programme has been provided to 40 schools with around 800 children attending the experience. Extensive planning and consultation has been underway to obtain approval for trial 40 km/hr speed zones outside schools. Many schools report that they experience difficulty with speeding vehicles during the periods that children are crossing their road frontage before and after school. The School zones, which are the first of their kind in New Zealand, are widely used overseas.
5 HIGHLIGHTS OF THE YEAR
ENVIRONMENTAL HIGHLIGHTS develops, that more of these materials will be utilised locally, providing both employment and environmental benefits. Waterways Project Initiatives Progress has also been made on commercial waste The Council is leading the way in New Zealand in minimisation through a survey of businesses to ascertain how waterway conservation and restoration projects. Grants from they can best be assisted, including production and circulation the Sustainable Management Fund have enabled two waterway of advice sheets. projects to be documented and publicised nationally as case studies of good practice in conservation of natural Regional Landfill environments within cities. The Avoca Valley Stream project Progress has been made during the year towards sets out a process for community involvement in waterway establishing a joint venture between Canterbury Waste Services enhancement. The other project involved development of a and Canterbury Territorial Authorities with the aim of standard conservation covenant for use in urban environments. establishing a joint regional landfill early in the new The enhancement of waterways not only beautifies the millennium when the current Burwood site will be closed. surrounding areas and provides wildlife habitats but also reduces maintenance costs and increases pride of the Compost community in these areas. An agreement has been reached between Garden City Compost and Living Earth whereby the Council product can Kerbside Recycling be marketed under the Living Earth Brand. The compost In May the city’s new kerbside recycling collection was plant is a further facility that makes good use of material, commenced for one third of the city, with the service being which would otherwise cause the current landfill to fill much extended to the whole city by July. The collection has proved more quickly. popular and positive feedback has been received from the community. Provision for Landfill After Care Tonnages of recyclables collected in the first three months In accordance with internationally accepted practice the project to an annual quantity of about 11,000 tonnes. About Council has recognised in its accounts for the first time the 4,500 tonnes of paper used to be collected under the previous long term liability for after care of closed landfill facilities. A system so there is 6,500 tonnes of recyclables per annum no liability has been recognised on the balance sheet of $13.8 longer going to the landfill as a result of this new collection. million that will be met over approximately the next 30 years This represents a 16% decrease in the city's black bag refuse as the former landfill sites are fully restored and returned to collection. useful purposes. The materials are being delivered to the Recovered Cycle Planning Materials Foundation which is responsible for finding the best During the year cycleways were provided at the hospital markets for them. The Recovered Material Foundation corner, for Shirley Schools, on Kahu Road, Kotare and (RMF) operates at the Parkhouse Road Refuse Station and has Kilmarnock Streets. Cycle lanes were marked through Moncks designed and constructed, at a fraction of the cost of an Bay connecting and extending those already marked across the imported equivalent, a glass crushing facility. The resulting causeway and through Redcliffs. crushed glass is being sold as a replacement material for sand in sandblasting and as an industrial filler. Other materials such as Design was completed for another 1.5 kilometres of cycle paper, aluminium and steel cans, and plastic bottles currently lanes along Ferry and Main Roads. Full consultation and are baled and shipped overseas. It is expected as the RMF design was completed for the first two stages of the (Papanui to
6 HIGHLIGHTS OF THE YEAR
Riccarton) railway cycleway which is likely to proceed in aerators. Research and consultation with parties was carried January/February 1999. out during the year to look at options for the long term discharge of the effluent to the estuary or the sea. Cycling has been promoted through twelve editions of the Press cycling page. Asset Management Plans for Infrastructural Services INFRASTRUCTURAL ASSETS Asset management planning was a key focus during the year. The liquid waste asset management plan was approved by Summer Drought Council and the asset management plans for roads and Canterbury Region experienced drought conditions during footpaths, water supply, waterways and wetlands, parks, the period commencing with lower than average rainfall in property and housing were all well advanced. September 1997 and persisting through the 1998 winter. Pressures in the aquifer that supplies Christchurch water fell FUNDING AND INFORMATION HIGHLIGHTS close to all time low levels. As a result, water restrictions were Year 2000 Compliance applied for a short period in February - the first time such restrictions had been brought in for 10 years. The situation The Council is proactive in dealing with its potential emphasised the need to manage the underground water exposure to the “Year 2000 issue”, thus minimising the risk to resource wisely. The City and Regional Councils are jointly Council services. engaged in a project to set long term strategies for A Project Manager and Project Assistant have been engaged Christchurch area water use. full time to manage the project, ensuring systems at risk are made compliant. A representative from each of the Council Water Expo units makes up a core team of 35 staff who are working with In a new initiative sponsored by the Royal Society of New the Project Management team. Zealand, awareness of water resource issues was brought to All Council facilities are being reviewed during 1998 for school children by way of the Council’s Water Expo project. Y2K risk. Major systems are generally compliant and where This established an interactive web site for school and there are identified shortcomings, strategies are in place for individual participation, and culminated in a project replacement or rectification. competition. Competition entries were displayed at the Convention Centre over a two day period, comprising 87 Where any system is deemed to be of high risk, eg. water, posters, 15 videos and 12 multimedia presentations. waste and Civil Defence. Contingency arrangements are being This marks the beginning of our use of the Internet to educate formulated to give confidence that services will not be young people about the water resource and wildlife issues interrupted. Contingency arrangements will be formulated confronting the region. Further such developments are irrespective of that system’s assessed compliance status. planned. Service providers to the Council have been contacted and Wastewater Treatment Plant asked to ensure they too will meet Year 2000 compliance so that risks are minimised of possible interruption to Council Following consultation, the Council is planning major service delivery. expenditure over the next five years to increase the capacity of the wastewater treatment plant to provide for a growing city The Project Team intends to have all Y2K concerns and to meet increasing environmental standards. Provision has resolved by the end of June 1999, six months ahead of the been made in the Plan for the expenditure of $30 million. A required date. contract has been let for the design of new clarifiers and
7 HIGHLIGHTS OF THE YEAR
Information Projects FUTURE CHALLENGES The organisation has spent considerable effort during this Proposed Roading Reform year planning for new information systems to better service customer service enquiries and for improved financial and The Council was very concerned at Government’s initial management information. consultation proposals on roading reform. In February 1998, the Council agreed to fund two major Funding Policy streams of activity related to roading reform – a legal challenge The Council completed its Funding Policy at the end of relating to common law rights of ownership of the road reserve June and published this with its 1998 Plan as well as various and a campaign to promote the Council’s viewpoint regarding other policy documents required by the Local Government the Roading Advisory Group proposals. Amendment Act (No3) 1996. This Policy evolved from Since making a submission on the Roading Advisory detailed analysis of the 230 outputs which the Council Group proposals in February, the Council has been active in produces and required the input of many hundreds of metting promoting its position. This activity has ensured that the hours plus staff support time. Council’s views have been at the forefront of public debate on FINANCIAL PERFORMANCE proposed roading reform. The extensive programme outlined in this report has been As this report goes to print, we are awaiting further achieved within the net operating budget established in the announcements on Government plans for reform of this area. 1997 Plan. Given that the operating turnover is $235 million, Major changes in this area will have wide ranging implications this is a very satisfactory result. In addition the balance sheet for the organisation and the local input into roading needs in of the Council remains strong with non-current assets under the city. core Council management of $2.66 billion and term debt of Banks Peninsula District Council Amalgamation $120 million. Even with the debt of Christchurch City Holdings Limited added, term debt at $244 million is only The Council responded during the year to requests from 9.17% of the Council’s non-current assets. the Local Government Commission for information and comment on a possible amalgamation with Banks Peninsula An operating surplus has been achieved of $23.39 million District Council (BPDC). While the operation of BPDC is which is well ahead of the budgeted deficit of $0.5 million and small compared to this Council, there will be significant issues is considerably better than the $2.5 million deficit target set in to be dealt with if an amalgamation proceeds as standards in the Financial Management Policy adopted in 1994. A special the rural area are brought up to city standards. dividend originating from Lyttelton Port Company increased dividend income by $15.0 million. Water and Wastewater Reform The Council has a strong liquid position with current assets There has been speculation over the possibility of of $84.1 million compared to current liabilities of $60.9 Government legislating for these functions to be transferred million. Of these current assets, $42.3 million represent into a LATE. Council is keeping a watching brief on this reserves held for specific purposes, and $20.1 million of the issue. current liabilities relate to debt due to mature within a year for which refinancing arrangements or repayment reserves are available. The Statement of Financial Position at June 1998 shows that the equity of the Council has increased during the year by $31.3 million. The increase is principally due to growth of reserves held for debt repayment and assets vested in the Council from subdivisions. Growth in operational, infrastructural and restricted assets was $67.6 million offset by Vicki Buck was Mayor throughout the year in question. increased debt of approximately $32.7 million. It is worthy of note that there is net growth in all assets categories in spite of depreciation of $48.5 million indicating that significant expenditure is taking place to renew all categories of assets on an ongoing basis. Group Financial Performance The group accounts represent the consolidated results and financial position of the entire group including the major trading enterprises in which the Council has a significant interest. The consolidated results for the group illustrate the David Close, Chairman Strategy & Resources Committee size and strength of the group as a whole: < Turnover $826 million
< Net surplus $38.2 million
< Total Assets $3.48 billion
< Total Debt $527.5 million
< Total equity $2.76 billion Mike Richardson, City Manager
< Increase in equity $30.3 million November 1998
8 STATEMENT OF FINANCIAL MANAGEMENT POLICIES
Principles 7. The Operating Expenditure of the Council shall be met from the operating revenues of the Council subject to the The following principles underly the policies on financial policy of reducing the operating deficit as outlined in and debt management set out below: point 1 above. 1. Debt repayment programme over 20 years to ensure intergenerational equity. 8. Sufficient expenditure will be applied to maintain the existing infrastructural asset base at least to current 2. • Ordinary renewal expenditure to be funded from standards or to standards adopted through an asset depreciation charges. management programme.
• New asset net additions funded both from loans and 9. Cash generated from revenue derived to meet depreciation internal financing. charges will be applied for funding renewal works in the first instance followed by capital works and Council debt. 3. Operating expenditure will be funded from operating revenue. 10. Cash surpluses from any year will be applied to reduce the borrowing requirement of the subsequent year.
Policies 11. Consideration is being given to replacing depreciation on The Christchurch City Council has adopted the following Infrastructural assets with Asset Maintenance Plans which policies in relation to Financial and Debt Management of the expense renewal and maintenance expenditures direct to Council and Christchurch City Holdings Ltd combined for the operating account in substitution for depreciation. the 20 years to 30 June 2014. 12. Net debt to funds flow from operations shall not exceed five times, ie, an ability to repay debt over five years 1. Over a period of five years the operating deficit of the (medium term) before net capital additions. Council will be progressively eliminated in accordance with the following targets: 13. A revenue study is being undertaken to determine the appropriate sources of revenue for the various Council Year ending Target Actual (Surplus)/ activities. This is expected to have an impact on the $ million Deficit Achieved structure of rates and revenue in future years. June 1995 11.75 10.38 Underlying Assumptions June 1996 10.0 7.84 1. Interest rates no more than 7% per annum for short term June 1997 2.4 (2.50) borrowings and 8.5% per annum for borrowings of two years or longer. June 1998 0.5 (23.4) 2. Zero to 2% inflation parameter. June 1999 Nil
Cash surpluses will be generated after year 5 (1998/99) to Note: Funds flow from operations is the net cash surplus of repay all Council loans over a 20 year rolling time frame. gross revenue over operating cash expenses (excludes depreciation). 2. Provision by way of reserve/sinking fund will be made each year for repayment of all new loans raised by the Council, plus the existing debt of Christchurch City Holdings Ltd, at no less than 3% of the amount borrowed, ie, to fix a Ratios debt repayment time frame of 20 years for the City The Financial Management Policies outlined above were Council. adopted in conjunction with the 1994/95 Annual Plan and it 3. Interest paid on term debt by the Council and is appropriate to compare the key ratios as at 30 June 1998 Christchurch City Holdings Ltd combined will not exceed with the outer benchmarks of the policy. 8% of the consolidated gross revenue, provided interest rates do not increase above 8.5%. This parameter would It should be noted that these ratios relate to the joint be reviewed in the event of interest rates rising above this position of the Council and Christchurch City Holdings Ltd. level. Policy Actual Projection 4. Term Debt as a percentage of total assets of the Council Limit 30 June 1998 Annual Plan and Christchurch City Holdings Ltd shall be no more than 1998 12%. Term Debt/Total Assets 12% 9.0% 7.7% 5. Term Debt as a percentage of realisable assets (includes net Term Debt/Realisable Assets 33% 22.3% 16.4% trading enterprise assets but excludes Infrastructural and Net Interest/Operating Revenue 8% 5.0% 5.3% Restricted Assets) shall be no more than 33%. Net Debt/Funds Flow 5 times 2.2 4.0 6. The liquidity ratio (current assets: current liabilities) shall be not less than 1:1 at each year end. (Note: Current assets excludes for this purpose cash investments relating to specified reserve funds and current liabilities excludes the current portion of term debt.)
9 FINANCIAL HIGHLIGHTS
Financial highlights from the financial statements have been extracted to provide an overview of the financial health of the Council. This data relates the City Council only and does not include the consolidated results of the corporatised trading.
TERM DEBT TO TOTAL ASSETS (Ratio) TERM DEBT TO REALISABLE ASSETS (Ratio) 8.95% (Actual 1998) 7.68% (Projection) 12.00% (Policy Limit) 22.33% (Actual 1998 ) 16.36% (Projection) 33.00% (Policy Limit)
NET INTEREST TO OPERATING REVENUE (Ratio) NET DEBT TO FUNDS FLOW (Times) 5.04% (Actual 1998) 5.29% (Projection) 8.00% (Policy Limit) 2.16 (Actual 1998 ) 4.04 (Projection) 5.00 (Policy Limit)
GENERAL RATE AS PERCENTAGE OF MAXIMUM LEGAL LIMIT WORKING CAPITAL RATIO (Times) 31.31% (1998) 27.62% (1997) 27.56% (1996) Number of times Current Assets exceed Current Liabilitiesby 1.38 (Actual 1998) 1.25 (1997) 1.60 (1996)
10 AUDIT REPORT
11 AUDIT REPORT
12 CHRISTCHURCH CITY COUNCIL GROUP
The following pages report the financial statements of the Christchurch City Council and its Subsidiaries for the year ended 30 June 1998. Christchurch City Council Parent Statements include:
Christchurch City Council Various Bequest and Special Funds Mayor’s Welfare Fund Canterbury Technology Park (at proportionate share – one third) Subsidiaries and Associates are: • Christchurch City Holdings Limited The Company is a wholly owned company formed to hold Christchurch City Council investments in subsidiaries. The financial statements consolidated are for the year ended 30 June 1998. Subsidiaries of this Company are: • Southpower Limited: This Company is an energy supply company in which Christchurch City Holdings Limited has an 87.625% interest. The financial statements consolidated are for the year ended 31 March 1998. Its major subsidiary is Enerco (New Zealand) Ltd. • Christchurch International Airport Limited This Company is 75% owned by Christchurch City Holdings Limited. The financial statements consolidated are for the year ended 30 June 1998. • Christchurch Transport Limited Christchurch Transport Limited is a public transport company and is wholly owned by Christchurch City Holdings Limited. The financial statements consolidated are for the year ended 30 June 1998. • Lyttelton Port Company Limited This Company is 65.63% owned by Christchurch City Holdings Limited. The financial statements consolidated are for the year ended 30 June 1998. • Canroad Construction Limited This Company is a wholly owned local authority trading enterprise that manufactures and supplies roading paving material, and also tenders for road works contracts. The financial statements consolidated are for the year ended 30 June 1998. • Streetworks Management (Christchurch) Limited This Company is a non trading local authority trading enterprise wholly owned by the Christchurch City Council. The financial statements consolidated are for the year ended 30 June 1998. • Selwyn Plantation Board Limited This associate company is 39.32% owned by the Christchurch City Council. The financial statements for the year ended 31 March 1998 are equity accounted. • Travis Finance Limited This Company is a holding company wholly owned by the Christchurch City Council, and has subsidiaries involved in ownership and maintenance of Travis Heritage Park, a natural reserve protecting native species. The financial statements consolidated are for the year ended 30 June 1998. • Windsor Central Limited This company is wholly owned by the Christchurch City Council, and currently owns the land upon which a future art gallery will be built. The financial statements consolidated are for the year ended 30 June 1998. • Christchurch City Facilities Limited This Company is wholly owned by the Christchurch City Council. It owns the Christchurch Convention Centre, leases the Town Hall from the Christchurch City Council and will own the Sports and Entertainment Centre under construction at balance date. The financial statements consolidated are for the year ended 30 June 1998.
13 CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 1998
GROUP GROUP PARENT PARENT PARENT 1998 1997 1998 1997 1998 Estimate INCOME NOTE PAGE NO $000's $000's $000's $000's $000's
Rates 116,083 109,748 116,876 110,550 116,289 Interest 1 22 7,471 8,893 5,638 7,409 4,430 Sale of Energy 419,588 386,516 0 0 0 Appliance Sales 46,196 54,161 0 0 0 Energy Contracting 6,009 3,927 0 0 0 Airport Operations 47,812 44,905 0 0 0 Port Operations 52,355 52,106 0 0 0 Transport Operations 15,972 12,140 0 0 0 Petroleum Tax 1,910 1,890 1,910 1,890 1,824 Dividends 2 22 258 311 31,018 10,187 16,441 Levies, Grants and Donations 6 23 4,947 6,853 5,004 6,853 3,500 Sundry Revenue 24,754 11,040 124 994 994 Significant Activity Income 3 22 & 33 76,074 69,430 73,046 68,513 70,979
TOTAL INCOME $819,429 $761,920 $233,616 $206,396 $214,457
EXPENDITURE Energy Operations 374,415 363,166 0 0 0 Airport Operations 18,799 16,487 0 0 0 Port Operations 27,046 27,067 0 0 0 Transport Operations 11,331 9,551 0 0 0 Levies 5 23 3,452 2,918 3,452 2,918 2,628 Professional Expenses re Subsidiaries 74 74 74 74 356 Grants 636 386 636 386 0 Other 7 23 1,629 3,780 0 2,154 1,845 Civic Child Care Centre Costs 0 (922) 0 (922) 0 Sundry Expenditure 12,249 11,626 168 232 0 Provision for Expenses 10 23 0 462 0 462 0 Interest 42,894 37,642 7,559 5,728 8,546 Significant Activity Costs 3 22 & 33 145,963 138,210 149,087 146,170 153,623 Depreciation 97,869 92,273 48,527 46,696 47,959 Subvention Payment 0 0 728 0 0
TOTAL EXPENDITURE 4 22 $736,357 $702,720 $210,231 $203,898 $214,957
OPERATING SURPLUS (DEFICIT) 83,072 59,200 23,385 2,498 (500)
Landfill After Care Provision 14 24 (13,800) 0 (13,800) 0 0 Vested Assets 20 25 16,600 23,901 16,600 23,901 0 Grants/Contributions to Enhancement Projects 44 32 4,967 0 4,967 0 7,434
Net Surplus (Deficit) Before Taxation 90,839 83,101 31,152 26,399 6,934 Income Tax Expense 39 31 (30,254) (23,306) 0 0 0
Net Surplus (Deficit) After Taxation 60,585 59,795 31,152 26,399 6,934 Share of Profits Attributable to Minority Interests (21,495) (13,910) 0 0 0 Share of Profits in Associates 8 23 (903) (689) (7) 124 563
NET SURPLUS (DEFICIT) TRANSFERRED $38,187 $45,196 $31,145 $26,523 $7,497 TO RETAINED EARNINGS
This Statement should be read in conjunction with the Statement of Accounting Policies and Notes to the Financial Statements.
14 CONSOLIDATED STATEMENT OF MOVEMENTS IN EQUITY FOR THE YEAR ENDED 30 JUNE 1998
GROUP GROUP PARENT PARENT 1998 1997 1998 1997 $000's $000's $000's $000's
Equity at 1 July 2,730,956 2,448,777 2,533,458 2,300,965
Net Surplus attributable to: Parent Entity Shareholders 38,187 45,196 31,145 26,523 Minority Interests 21,495 13,910 - - Increases (decreases) in Revaluation Reserves (6,425) 187,715 190 205,970
Total Recognised Revenues and Expenses for the Year 53,257 246,821 31,335 232,493 Distribution paid and provided to Minority Interests (23,381) (10,235) - - Minority Interest Share of Revaluation - 45,386 - - Other movements in Minority Interests 449 207 - -
Equity at 30 June $2,761,281 $2,730,956 $2,564,793 $2,533,458
This Statement should be read in conjunction with the Statement of Accounting Policies and Notes to the Financial Statements.
15 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 1998
GROUP GROUP PARENT PARENT 1998 1997 1998 1997 $000's $000's $000's $000's CURRENT LIABILITIES NOTE PAGE NO Bank Overdraft 42,448 27,918 748 3 Accounts Payable 9 23 73,800 92,058 21,720 24,029 Provision for Taxation 1,855 1,558 855 1,010 Accruals 11 23 38,865 25,291 17,155 13,692 Proposed Dividend 4,339 3,306 0 0 Current Portion of Term Debt 12 24 20,290 18,623 20,034 18,368 Current Portion of Other Non Current Liabilities 16 25 393 - 393 -
TOTAL CURRENT LIABILITIES $181,990 $168,754 $60,905 $57,102
NON CURRENT LIABILITIES Term Debt 12 24 328,994 297,972 99,994 68,972 Bank and Other Bills 13 24 178,256 137,649 0 0 Other 16 25 19,088 5,059 18,949 4,903 TOTAL NON CURRENT LIABILITIES $526,338 $440,680 $118,943 $73,875
DEFERRED TAXATION 39 31 $11,207 1,161 0 0
EQUITY Reserve Funds 17 25 42,274 32,165 42,274 32,165 Capital Reserves 18 25 1,756,223 1,756,223 1,756,223 1,756,223 Revaluation Reserves 19 25 494,629 501,197 608,992 608,893 Retained Earnings 21 25 264,499 236,278 157,304 136,177
Total Ratepayers Equity 2,557,625 2,525,863 2,564,793 2,533,458 Minority Interest 41 32 203,656 205,093 0 0
TOTAL EQUITY 2,761,281 2,730,956 2,564,793 2,533,458
TOTAL LIABILITIES AND EQUITY $3,480,816 $3,341,551 $2,744,641 $2,664,435
This Statement should be read in conjunction with the Statement of Accounting Policies and Notes to the Financial Statements.
16 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 1998
GROUP GROUP PARENT PARENT 1998 1997 1998 1997 $000's $000's $000's $000's CURRENT ASSETS NOTE PAGE NO Cash on Hand 30 26 30 26 Bank 39,933 24,285 0 1,264 Short Term Investments 56,818 44,725 56,818 44,725 Accounts Receivable 22 26 78,464 82,106 10,933 11,654 Other Receivables/Prepayments 23 26 6,924 7,947 6,186 7,491 Inventory 24 26 14,007 16,660 2,024 1,925 Taxation Prepayment 12,690 8,298 0 0 Dividends Receivable 219 44 8,060 4,374
TOTAL CURRENT ASSETS $209,085 $184,091 $84,051 $71,459
NON CURRENT ASSETS INVESTMENTS General Investments 25 26 61,887 60,408 600,939 597,468 Loan Repayment Investments 7,742 11,545 7,742 11,545
FIXED ASSETS Operational 27 28 1,592,543 1,505,710 468,513 431,913 Infrastructural 28 28 1,318,799 1,299,559 1,318,799 1,299,559 Restricted 29 29 264,597 252,491 264,597 252,491
GOODWILL 26,163 27,747 0 0
TOTAL NON CURRENT ASSETS $3,271,731 $3,157,460 $2,660,590 $2,592,976
TOTAL ASSETS $3,480,816 $3,341,551 $2,744,641 $2,664,435
This Statement should be read in conjunction with the Statement of Accounting Policies and Notes to the Financial Statements.
17 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 1998
GROUP GROUP PARENT PARENT 1998 1997 1998 1997 CASH FLOWS FROM OPERATING ACTIVITIES NOTE $000's $000's $000's $000's Cash was provided from: Rates and other Revenue 817,803 716,215 201,273 176,207 Interest 8,364 9,153 6,576 7,121 Dividends 83 303 27,332 7,709 Taxation Subvention 0 0 0 0
$826,250 $725,671 $235,181 $191,037 Cash was disbursed to: Payments to suppliers and employees 599,894 537,581 156,139 138,480 Goods and Services Tax (Net) 569 1,443 (935) 411 Interest 42,667 36,139 7,561 5,087 Tax Paid 24,303 28,861 883 0
$667,433 $604,024 $163,648 $143,978
NET CASH FLOW FROM OPERATING ACTIVITIES 38 $158,817 $121,647 $71,533 $47,059
CASH FLOWS FROM INVESTING ACTIVITIES Cash was provided from: Proceeds of sale of fixed assets 11,348 14,914 1,389 16,002 Investments Realised 2,100 4,377 3,711 4,169 Loan Repaid by Subsidiary 0 0 8,594 13
$13,448 $19,291 $13,694 $20,184
Cash was applied to: Cash outflow for Fixed Assets 203,387 187,219 96,395 74,364 Cash outflow for investment in Subsidiary Company 0 0 11,432 21,847 Cash outflow for Loan to Subsidiary Company 0 0 0 15,974 Cash outflow for Sundry Investments 6,746 22,080 0 1,479
$210,133 $209,299 $107,827 $113,664
NET CASH FROM INVESTING ACTIVITIES ($196,685) ($190,008) ($94,133) ($93,480)
CASH FLOWS FROM FINANCING ACTIVITIES Cash was provided from: Proceeds of raising Public Debt 95,842 65,063 51,234 46,649 Share Capital (Minorities) 0 208 0 0
$95,842 $65,271 $51,234 $46,649 Cash was applied to: Term Borrowing Reduced 22,411 24,394 18,546 13,267 Other 0 (34) 0 0 Dividends 22,348 9,510 0 0 Bank Bills 0 0 0 0
$44,759 $33,870 $18,546 $13,267
NET CASH FROM FINANCING ACTIVITIES $51,083 $31,401 $32,688 $33,382
Increase (Decrease) in cash held 13,215 (36,960) 10,088 (13,039) Opening Cash 41,118 78,078 46,012 59,051
ENDING CASH FORWARD 37 $54,333 $41,118 $56,100 $46,012
This Statement should be read in conjunction with the Statement of Accounting Policies and Notes to the Financial Statements.
18 STATEMENT OF ACCOUNTING POLICIES
REPORTING ENTITY (ii) Airport Fixed Assets: The Christchurch City Council is a territorial local Fixed assets are recorded at original cost less accumulated authority formed under the Local Government Act 1974 as depreciation. Cost recognises the acquisition price paid on amended. the purchase of the Airport assets from the Christchurch Airport Authority and subsequent capital expenditure. MEASUREMENT BASE Fixed assets have not been revalued above original cost, The measurement base adopted is that of historical cost as except for Land which is revalued every three years. The modified by the revaluation of certain assets. current valuation of land is at net current value as at 30 June 1996; registered valuer Simes & Co. ACCOUNTING POLICIES (iii) Port Fixed Assets: The following accounting policies which materially affect Fixed assets are recorded at cost less accumulated the measurement of financial performance and the financial depreciation. position have been applied. (iv) Transport Fixed Assets: A. Basis of Consolidation Buses were revalued to net open market value at 30 June Subsidiary Companies and Local Authority Trading 1993 by Connell Wagner Ltd (MIPMV). This valuation Enterprises was confirmed as at 30 June 1996. Subsidiaries and other entities in which the Council has a (v) Energy Distribution Systems: controlling shareholding are accounted for using the All fixed assets were revalued by Ernst and Young, Purchase method, which shows the group profits in the registered valuer, to net current value at 31 March 1997. Consolidated Statement of Financial Performance, and the assets and liabilities in the Consolidated Statement of (vi) Assets purchased since valuation have been recorded at Financial Position. All significant inter company cost. transactions are eliminated upon consolidation. C. Infrastructural Assets Associate Organisations Infrastructural Assets have been valued at replacement Associate organisations are accounted for by the Equity value, depreciated according to the expected remaining life method, which records the Council’s share of profits and of the system. This has been adopted as deemed cost. losses for the period in the Consolidated Statement of Infrastructural assets are: Financial Performance, and shows the amount of equity Roads held in Investments in the Consolidated Statement of Financial Position. An associate organisation is one in Water, Sewerage and Stormwater Pumping Plant which the Council has an equity interest of between 20% Sewers and Stormwater Drains and 50% and the capacity to significantly influence the Water Reticulation policies of that organisation. Street Lighting Joint Ventures Traffic Signals Joint Ventures are incorporpated into the parent’s financial statements using the proportionate method. Water Meters B. Operational and Fixed Assets Bus Shelters (i) Council Operational Assets: Roads were valued at 30 June 1992 by Professional Engineers employed on the staff of Christchurch City (a) The following operational assets were valued as at Council. The methodology adopted and valuation for 30 June 1991 by Harcourts Valuations Ltd. roading was supervised and reviewed by Royds Garden, - Chattels Consulting Engineers. Land under roads is included in the valuation based on Valuation New Zealand values for - Mobile Plant (including vehicles) rating purposes. - Plant Water Supply Pumping Plant was valued at 31 May 1991 Valuations above were based on depreciated replacement by Royds Garden, Consulting Engineers. value. This is deemed to be cost. Sewerage and Stormwater Pumping Plant was valued at (b) Land and Buildings were valued by Simes & Co Ltd at June 1996 to net current value on existing use basis. 31 May 1991 by Beca Steven, Consulting Engineers. (c) Library Books are shown at a valuation by Harcourts Sewers, Stormwater Drains and Water Reticulation Valuations Ltd at 30 June 1992. Valuation was based on Infrastructural Assets were valued at 30 June 1992 by the lower of the net current replacement cost, and the Royds Garden, Consulting Engineers. Street Lighting was recoverable amount. valued at 30 June 1992 by Harcourts Valuations Ltd. Operational Assets will be valued in future, as follows: Water Meters, Bus Shelters and Traffic Signals were valued All Plant and Chattels At initial valuation and cost at 1 July 1991 by Harcourts Valuations Ltd. and Library Books for subsequent purchases. Additions to Infrastructural Assets since valuation are Land & Buildings To be cyclically revalued every recorded at cost. three years by external valuers.
19 STATEMENT OF ACCOUNTING POLICIES
D. Assets under Construction H. Provision for Resealing Surfaces Assets under construction are not depreciated. The total Whereas depreciation is provided for in respect of Airport cost of a project is transferred to the relevant asset class on sealed surfaces, recognising the ultimate economic life of its completion, and then depreciated. those surfaces, additional provision is made for periodic maintenance involving the resealing of the surfaces. The E. Restricted Assets resealing provision takes account of the accruing These assets are: maintenance throughout the financial period and has the character of a timing difference which is not deductible for Land and Buildings with restrictions on sale - eg Parks taxation purposes until the eventual expenditure is and Reserves incurred. Library Books - New Zealand Collection The selected economic life for sealed surfaces is based on Properties held in Trust for other organisations the assumption that periodic maintenance will be carried These assets have been valued on the same basis as out. The provision is, therefore, regarded as being the Operational Assets. equivalent of additional depreciation which will be reversed when the actual resurfacing is carried out. Total provision Works of Art: is deducted from the carrying value of sealed surfaces. Works of Art have been valued at market value by the Registrar of the Robert McDougall Art Gallery at I. Landfill After Care Costs 30 June 1997. As operator of the Burwood landfill, the Council has a legal obligation to provide ongoing maintenance and monitoring services at the landfill site after closure. To provide for the F. Investment and Development Property estimated cost of aftercare, a charge is made each year based The Council has no properties purchased or acquired for the on volumes processed through the landfill. primary purpose of earning capital gains or rental income. The estimated cost is calculated based on estimates of: G. Depreciation (i) Total current cost Depreciation provided in respect of operational and This is defined as the amount that would be paid if all infrastructural assets is intended to write off the cost of equipment, facilities and services included in the estimate assets over their estimated useful life. This is performed were acquired during the current period. The estimate has using the straight line method except for mobile plant that been based on costs of closure of similar landfills by other is depreciated on a diminishing value (DV) basis. local authorities. (ii) Total capacity The main bases are the following periods: The estimated length of time needed for post-closure care Buildings 100 Yrs is 30 years. Office and Computer Equipment 4-5Yrs The Council also has a legal obligation to provide ongoing Motor Vehicles/Motorised Plant 2-16 Yrs maintenance and monitoring services for the closed landfill sites of the former amalgamating authorities. The Sealed Surfaces (other than roads) 30-50 Yrs estimated future costs to perform this obligation have been Harbour Structures 5-58 Yrs accrued and charged in the June 1998 year. Energy Distribution System 70 Yrs The calculations assume no change in the legislative Gas Mains and Services 80 Yrs requirements for closure and post-closure treatment. Meters and Local Control Equipment 30 Yrs J. Goods and Services Tax Leasehold Land Improvements 14 Yrs The financial statements have been prepared exclusive of Library Books 3-10 Yrs GST with the exception of receivables, payables, rental housing and ‘financial services’ as defined in the Act. Roading 23-77 Yrs These items have been shown inclusive of GST. Sewers, Stormwater and Water Systems and Plant 10-90 Yrs K. Research and Development Costs Streetlights 28 Yrs Research and development costs are expensed in the period incurred. Development costs are deferred where it is Bridges 142 Yrs probable that future benefits will exceed those costs. Bus Shelters 66 Yrs Deferred development costs are amortised over future periods in relation to expected future revenue. Buses 5-6 Yrs Mobile Plant 7.5-50.0% DV L. Goodwill Goodwill represents the excess of the purchase Restricted assets are not depreciated except for Historic consideration over the fair value of net tangible and Buildings which are depreciated at 1% on a straight line identifiable intangible assets acquired at the time of basis. Southpower Ltd’s, Travis Finance Ltd's and Christchurch City Holdings Ltd’s acquisition of the shares in subsidiaries. Goodwill is amortised by the straight line method over the period during which benefits are expected to be received. This is a maximum of 20 years.
20 STATEMENT OF ACCOUNTING POLICIES
M. Income Tax Stock are valued at cost with premiums paid or discounts The income tax expense charged to the Statement of taken on acquisition amortised over the life of the Financial Performance includes both the current year investment. Income is recognised on a yield to maturity expense and the income tax effects of timing differences basis. calculated using the liability method. (d) Share investments, gifted in trust, are valued at fair value. Southpower and Christchurch International Airport Ltd apply tax effect accounting on a partial basis to all timing (e) Loans to various sporting and cultural organisations differences. All other subsidiaries apply tax effect are recorded at fair value. accounting on a comprehensive basis. A debit balance in (f) All other financial instruments, including Cash and the deferred tax account, arising from timing differences or Bank balances, Accounts Payable and Term Debt are income tax benefits from income tax losses, is only valued at fair value. recognised when there is virtual certainty of realisation. S. Debt Servicing and Cost of Capital N. Inventories Cost of capital charges for significant activities were Inventories are valued at the lower of cost and net realisable stopped from 1 July 1996. These have been replaced by value. debt servicing charges that represent each activity’s share of Cost is determined by FIFO or weighted average methods. the Council’s actual borrowing costs. These are apportioned on the basis on the book value of the O. Leases Operational and Infrastructural Assets employed at (i) Finance Leases 1 July 1998. These leases effectively transfer all the risks and benefits of Cost of capital is taken into account in setting fees. ownership to the lessee. Finance Leases are included in T. Cost Allocations liabilities at their current value. Assets purchased under such leases are included in fixed assets and depreciated at The costs of all internal service type activities are allocated usual rates. or charged directly to external service type activities. External service refers to activities which provide a service (ii) Operating Leases direct to the public. Internal service type activities provide Under these leases, the lessor effectively retains all the risks support for the external service activities. Where the user and benefits of ownership. These lease payments are of a service can be identified, for example with City Design charged as expenses in the periods in which they are and Works Operations, the cost recovery is made by way of incurred. direct charge. Where this has not been possible, the costs are allocated by way of corporate overhead. The basis of P. Employment Entitlements the corporate overhead allocation is reviewed each year and Provision is made in respect of the Council's liability for every attempt is made to relate the allocation with the gratuity allowances, and annual and long service leave. service utilised. Internal service costs which are allocated These have been calculated on an actual entitlement basis out as corporate overhead include Corporate Services and at current rates of pay. Financial Services. Q. Investments U. Donated Goods and Services Subsidiaries, Associates and shares in Local Government The Council receives the benefits of many services provided Insurance Corporation Limited and New Zealand Counties by volunteers. These services are greatly valued. They are, Investment Company Limited are valued at share of equity however, difficult to measure in monetary terms. From an of the latest Statement of Financial Position. accounting point of view these services are not considered R. Financial Instruments material in relation to the Council’s total expenditure. Christchurch City Council and its subsidiaries are party to Vested Land, Buildings and Infrastructural Assets are financial instrument arrangements as part of everyday included at current value. operations. These financial instruments include Banking funds, Bank Deposits, Short Term Investments, Accounts V. Third Party Transfer Payment Agencies Receivable, Long Term Receivable, Sinking Fund The Council collects monies for many organisations Investments, Accounts Payable and Term Debt. including Southpower, Canterbury Regional Council and Revenues and Expenses in relation to all financial others. Where collections are processed through the instruments are recognised in the Statement of Financial Council’s books, any monies held are shown as Accounts Performance. Payable in the Statement of Financial Position. All financial instruments are recognised in the Statement of W. Changes in Accounting Policies Financial Position, with the exception of Guarantees and Contingent Assets and Liabilities, which are disclosed by The Liability for closure and after care of landfills is now way of Note to the Financial Statements. Any income or being recognised progressively over the life of the landfill. expenditure arising from the exercising of a Guarantee, or The future liability for after care costs for closed landfills upon a contingency becoming an actual asset or liability, has also been recognised in full. will be recognised in the Statement of Financial This change has been made to ensure that the Council's Performance at the time of confirmation. future obligations related to refuse disposed of in landfills is The following methods and assumptions were used to value recognised and so the full cost of refuse disposal is shown. each class of financial instrument: (a) Accounts Receivable and Long Term Receivable are The overall effect of the change is to increase operational recorded at estimated realisable value. expenditure in the current year by $13.8 million. (b) Short Term Investments are valued at fair value. There were no other changes in Accounting Policies. These have been applied on a basis consistent with those (c) Investments in Government and Local Authority used in previous years.
21 NOTES TO FINANCIAL STATEMENTS
NOTE 1: NOTE 3: Interest Income: Significant Activity Income: Interest Income represents interest earned on investments for 1998 1997 the year ended 30 June 1998. $000's $000's Parent 73,046 68,513 Group 1998 1997 Subsidiaries 10,921 7,031 $000's $000's Less Inter Entity Transactions (7,893) (6,114) Loan Repayment Investments 993 1,189 Trust Investments 60 230 Group $76,074 $69,430 Short Term Investments 3,252 5,294 Interest Earned by Subsidiary Organisations 3,116 1,484 Refer to Summary of Activities on page 33. General Investments 50 696
$7,471 $8,893 Significant Activity Expenditure: 1998 1997 $000's $000's Parent 1998 1997 Parent 149,087 146,170 $000's $000's Subsidiaries 12,825 6,785 General Investments 1,333 696 Less Inter Entity Transactions (15,949) (14,745) Loan Repayment Investments 993 1,189 Short Term Investments 3,252 5,294 Group $145,963 $138,210 Trust Investments 60 230 Refer to Summary of Activities on page 33. $5,638 $7,409
NOTE 4: The following costs are included in Expenditure: NOTE 2: Group Parent $000's $000's Dividend Income: (a) Audit Fees 1998 1997 $000's $000's 1998 Group Auditor of Parent 332 147 Local Government Insurance Other Auditors 204 0 Corporation Ltd 22 44 Selwyn Plantation Board Ltd 236 236 Other Services: Associates 0 31 Auditor of Parent 38 5 Other Auditors 5 0 $258 $311 1997 Auditor of Parent 343 160 Other Auditors 179 0 1998 1997 $000's $000's Other Services: Parent Auditor of Parent 52 6 Christchurch City Holdings Ltd 30,714 9,869 Other Auditors 12 0 Local Government Insurance Corporation Ltd 22 44 (b) Directors Fees paid in subsidiary Selwyn Plantation Board Ltd 236 236 organisations Streetworks Management 1998 813 0 (Christchurch) Ltd 0 (23) 1997 799 0 Canroad Construction Ltd 46 61 (c) Councillors Allowances $31,018 $10,187 1998 1,275 1,275 1997 1,192 1,192
(d) Bad Debts 1998 1,299 84 1997 1,214 74
(e) Movement in Provision for Doubtful Debts 1998 1,240 70 1997 138 0
Included in Income is the following: Gain on Sale of Fixed Assets 1998 949 300 1997 722 1,064
22 NOTES TO FINANCIAL STATEMENTS
NOTE 5: NOTE 8: Sections 223J and K of the Local Government Act and the Associated Organisations: Canterbury Museum Trust Board Act 1993 require the following to be reported on for the year ended 30 June 1998. Share of loss in Associated Organisations was $7K (Parent), (1997, $124K profit) and share of loss in Associated Organisations (Group) was ($903K), (1997, $689K profit). Parent 1998 1997 $000's $000's (a) Insurance Premiums Paid 907 996 NOTE 9: (b) Ex Gratia payments to any persons Accounts Payable: suffering a loss while rendering 1998 1997 assistance to or performing any action $000's $000's while under control or authority of Parent 21,720 24,029 the Council Nil Nil Subsidiaries 55,040 71,281
(c) Ceremonies for the public or a 76,760 95,310 section of the public 71 90 Less Inter Company Items (2,960) (3,252) (d) Purchase of insignia and robes of office and civic insignia of any kind 3 3 Group $73,800 $92,058 (e) Provision of Entertainment 97 84 NOTE 10: Provision for Expenses: (f) Payment of levies or general contributions to organisations Parent and Group 1998 1997 considered appropriate to the $000's $000's functions of the Council - Civil Defence 603 483 ACC and Other 0 462 - Canterbury Museum 2,278 1,924 - Riccarton Bush 285 285 Total Parent and Group 0 $462 - Rural Fire Fighting 286 226 NOTE 11: $3,452 $2,918 Accruals: (g) Unauthorised Expenditure Nil Nil Accruals are balance date items accrued to that date in the following: (h)Four members are appointed by the Council to the 1998 1997 Canterbury Museum Trust Board as the Council’s $000's $000's representatives. Parent 17,155 13,692 Subsidiaries 21,784 11,599 NOTE 6: Grants and Donations: Group $38,939 $25,291 Less intercompany Items (74) 0 Parent 1998 1997 $000's $000's $38,865 $25,291 Mayor’s Welfare Fund (1) 295 839 Reserve Contributions and Bequests 4,275 4,161 Comprising: Sundry 434 1,853 Employees 10,126 9,247 $5,004 $6,853 Contract Retentions 2,264 1,610 Accrued Expenditure 3,817 1,693 Less Intercompany Items (57) 0 Income in Advance 948 1,142
Group 4,947 6,853 Total Parent $17,155 $13,692
(1) NB 1997 included a bequest from the Estate of HG Philpott of $556,000. Subsidiaries: Employees 8,959 10,842 NOTE 7: Accrued Expenditure 12,825 757 Other Expenditure: Total Subsidiaries $21,784 $11,599 Parent 1998 1997 $000's $000's Asset Writeoffs & Writedowns 0 2,154
Subsidiary: Amortisation of Goodwill 1,629 1,626
Group $1,629 $3,780
23 NOTES TO FINANCIAL STATEMENTS
NOTE 12: Christchurch City Holdings Limited: (CCHL) Term Debt: These Commercial Bills are rolled over at periodic intervals for periods between 30 to 180 days, issued under a notes issuance Term Debt liability is as follows: facility (NIF) managed by Credit Agricole Indosuez. The 1998 1997 interest rate is determined by either the BKBM bid rate set by $000's $000's Reuters daily, plus a variable margin or absolute bid at 10.30am Christchurch City Council on the date of settlement. These notes are secured by a first Total Term Debt (secured by Rates) 120,028 87,340 ranking debenture over the assets of CCHL. Less Current Portion (20,034) (18,368) Christchurch International Airport Limited: Term Debt $99,994 $68,972 The bank bills are due for repayment by 31 March 2001. Interest is calculated at Bank rates and the interest rate varies Christchurch City Holdings Limited daily. During the year the rates ranged from 7.30% to 7.69% Total Term Debt 44,000 44,000 Less Current Portion 0 0 Lyttelton Port Company Limited: Both the short term borrowings and term advances have been Term Debt $44,000 $44,000 raised pursuant to multi option credit line agreements with Westpac Trust. These funds have been lent against a negative Southpower Limited pledge deed where the bank rates equally with other creditors. Total Term Debt 185,256 185,255 The effective interest rate during the year was 7.53% Less Current Portion (256) (255) NOTE 14: Term Debt $185,000 $185,000 Landfill Aftercare Liability
Group Burwood Landfill Total Term Debt 349,284 316,595 The Christchurch City Council gained a resource consent in Less Current Portion (20,290) (18,623) April 1998 to operate Stage II of the Burwood Landfill. The Council has responsibility under the resource consent to provide Group Term Debt $328,994 $297,972 ongoing maintenance and monitoring of the landfill after the site is closed. There are closure and post-closure responsibilities such as the following: Christchurch City Council Term Debt of $120M is due for repayment as follows: Closure responsibilities: $000's % - final cover application and vegetation 1998/99 20,034 Average interest rate 6.86 - incremental drainage control features 1999/00 37,353 " " 8.02 - completing facilities for leachate collection and monitoring 2000/02 28,372 " " 8.01 - completing facilities for water quality monitoring 2002/25 34,269 " " 7.51 - completing facilities for monitoring and recovery of gas Post-closure responsibilities $120,028 - treatment and monitoring of leachate - ground water and surface monitoring The Council has loan repayment investments (Sinking - gas monitoring and recovery Funds) of $7.742M which are to be applied against Term Debt. - implementation of remedial measures such as needed for (1997, $11.545M). The Council also established a Loan cover and control systems Repayment Reserve during the year of $10.472M to reduce - ongoing site maintenance for drainage systems, final cover Term Debt. and vegetation Southpower Limited $000's Interest Rate To provide for the estimated cost of aftercare a charge is made Current 256 90 day bill each year. This charge is based on the following formula: 3 years * 185,000 rates + margin * 9.17% to 9.69% estimated total current cost x cumulative capacity used $185,256 total estimated capacity less amount previously recognised Christchurch City Holdings Limited $000's 90 day bill The estimated total liability for closure and post-closure is $7.6 3 years $44,000 rates + million. The amount remaining to be recognised is $2.0 million. margin NOTE 13: Capacity of the Site The resource consent expires on 31 May 2002 when it is Bank and Other Bills: planned that the Council will use a new joint venture landfill. Group 1998 1997 Therefore, remaining useful life is estimated to be 47 months. $000's $000's Non Current Portion 178,256 137,649 Closed Landfills
$178,256 $137,649 The Council is still awaiting the issue of resource consents for the closed landfills for which it is responsible for the ongoing Christchurch City Holdings Ltd 80,000 84,000 monitoring and maintenance. The liability has been estimated ChCh International Airport Ltd 70,390 47,149 based on an assumed monitoring period of 30 years, after the Lyttelton Port Co Ltd 27,866 6,500 issue of the resource consents. The total estimated cost for the closed landfills, excluding the first three stages of the Burwood $178,256 $137,649 Landfill, is $8.2 million.
24 NOTES TO FINANCIAL STATEMENTS
NOTE 15: NOTE 19: Imputation Credit Account: Revaluation Reserves: 1998 1997 $000's $000's Parent 1998 1997 Imputation credits of subsidiaries $000's $000's Balance 1 July 608,893 402,396 CCH Ltd 18,677 13,144 Movements During Year CCHL Subsidiaries 48,390 50,338 Revaluation of Share of Subsidiaries Other CCC Subsidiaries 19 12 and Joint Ventures 548 208,915 Revaluation of Assets (358) (2,945) $67,086 $63,494 Fixed Assets Realised (91) 527
Dividend income of the parent includes an accrual for the BALANCE 30 JUNE $608,992 $608,893 final 1998 dividends. All these dividends, except those from one subsidiary, carry imputation credits when the dividend is received. Group 1998 1997 $000's $000's NOTE 16: Balance 1 July 501,197 312,955 Movements During Year Other Non-Current Liabilities: Revaluation of Share of Associates Parent 1998 1997 and Joint Venture (6,067) 46 $000's $000's Fixed Assets Realised (143) 527 Current Portion 393 0 Revaluation of Assets (358) 187,669 Non Current Portion 18,949 4,903 BALANCE 30 JUNE $494,629 $501,197 $19,342 $4,903 Revaluation Reserves with debit balances have not been Being: expensed, as they are not considered significant and are Provision for Gratuity Allowance $5,542 $4,903 expected to reverse in future periods. Provision for Landfill Aftercare 13,800 0
$19,342 $4,903 NOTE 20: Group 1998 1997 Vested Assets: $000's $000's Parent and Group: 1998 1997 Current Portion 393 0 $000's $000's Non Current Portion 19,088 5,059 Restricted Land and Buildings 4,734 5,564 Infrastructural Assets 11,866 18,337 $19,481 $5,059 $16,600 $23,901 Provision for Gratuity Allowance 5,681 5,059 Provision for Landfill Aftercare 13,800 0 NOTE 21: $19,481 $5,059 NOTE 17: Retained Earnings:
Reserve Funds: Parent 1998 1997 $000's $000's Parent and Group 1998 1997 Balance 1 July 136,177 111,800 $000's $000's Add Surplus for Year 31,145 26,523 Balance 1 July 32,165 30,546 Plus/(Less) Realised Assets Revaluation Transfers from/(to) Retained Earnings 10,109 1,619 Reserve 91 (527) Add Transfers from/(to) Reserves (10,109) (1,619) BALANCE 30 JUNE $42,274 $32,165
Trust Funds 2,038 2,072 BALANCE 30 JUNE $157,304 $136,177 Special Funds 40,236 30,093 Group BALANCE 30 JUNE $42,274 $32,165 Balance 1 July 236,278 193,228 NOTE 18: Add Surplus for Year 38,187 45,196 Less Realised Assets Revaluation Capital Reserve: Reserve 143 (527) Add Transfers from/(to) Reserves (10,109) (1,619) Parent and Group 1998 1997 $000's $000's BALANCE 30 JUNE $264,499 $236,278 Balance 1 July 1,756,223 1,756,223
BALANCE 30 JUNE $1,756,223 $1,756,223
25 NOTES TO FINANCIAL STATEMENTS
NOTE 22: NOTE 25: Accounts Receivable: Investments: 1998 1997 $000's $000's Group 1998 1997 Parent 10,933 11,654 Investment in Companies $000's $000's Subsidiaries 70,528 73,909 (at Share of Equity): NZ Counties Investments Co Ltd 285 285 81,461 85,563 NZ Local Government Insurance Co Ltd 657 656 Less Inter Company Items (2,997) (3,457) Shares held on account of M K Richards Trust (at Market Valuation) 515 579 Group $78,464 $82,106 Equity Share of Selwyn Plantation Board Ltd 30,319 35,936 Other (at Cost) - Mortgages and Loans 4,393 4,101 NOTE 23: - Investments by Subsidiaries 25,718 18,851
Other Receivables and Prepayments: $61,887 $60,408
1998 1997 $000's $000's Parent 1998 1997 Parent 6,186 7,491 Investment in Companies $000's $000's Subsidiaries 809 621 (at Share of Equity): - NZ Counties Investment Co Ltd 285 285 6,995 8,112 - NZ Local Government Insurance Co Ltd 657 656 Less Inter Company Items (71) (165) Investment in Companies (at Market Valuation): Group $6,924 $7,947 - Shares held on a/c of M K Richards Trust 515 579 Investment in Subsidiary Companies NOTE 24: (at Share of Equity): Inventory: - Christchurch City Holdings Ltd 524,323 513,858 - Canroad Construction Ltd 360 222 Inventory represents stocks of various materials, goods and - Streetworks Management (ChCh) Ltd 41 61 livestock held by: - Travis Finance Ltd (650) (313) - Windsor Central Ltd 9,664 367 Parent 1998 1997 - Christchurch City Facilities Ltd 18,553 20,057 $000's $000's Investment in Joint Ventures General Stores 1,433 1,293 (at Proportionate Share of Equity) Livestock and Feed 162 193 - Canterbury Technology Park 0 587 Souvenirs and Food 126 115 Investment in Associate Organisations Development Land 303 324 (at Share of Equity): - Selwyn Plantation Board Ltd 30,319 35,936 2,024 1,925 Other (at Cost): Subsidiaries 11,983 14,735 - General Mortgages and Miscellaneous Loans 4,393 4,101 Group $14,007 $16,660 - Loans - Christchurch City Holdings Ltd 5,000 5,000 - Windsor Central Ltd 0 8,574 Comprising: 1998 1997 - Canroad Construction Ltd 79 98 $000's $000's - Travis Finance Ltd 7,400 7,400 Development Land 303 324 Inventories 13,416 16,028 $600,939 $597,468 Livestock and Feed 162 193 Souvenirs and Food 126 115 Publicly Traded Investments: 1998 1997 $14,007 $16,660 Market Value of Investment at 30 June $000's $000's Lyttelton Port Company Ltd 83,285 149,913 Enerco New Zealand Ltd 286,890 297,136
26 NOTES TO FINANCIAL STATEMENTS
Electricty Hedge Contracts NOTE 26 Financial Instruments: Southpower has electricty price hedge contracts with various counterparties covering the period to 30 September (a) Credit Risk 2000. Under these contracts, Southpower purchases electricty Financial instruments which potentially subject forward at a fixed price (hedge price) or within a price range to Christchurch City Council and its subsidiaries to credit risk give certainty about future electricity costs. consist principally of cash and short term investments, accounts In a typical fixed price contract, if the wholesale spot price and long term receivables, and loans. goes higher than the hedge price, the counterparty reimburses the company for the difference between the two prices. If the wholesale spot price goes below the hedge price, the company (b) Credit Risk Exposure reimburses the counterparty for the difference. (i) Parent: In an options contract, while the wholesale spot price Maximum exposures to credit risk at balance date are: remains within a contracted price range, no payment is 1998 1997 required by either party. However, if the wholesale spot price $000's $000's falls below the floor price, Southpower reimburses the Cash and Bank Balances 30 1,290 counterparty for the difference between the two prices. If the Short Term Investments 56,818 44,725 wholesale spot price exceeds the cap price, the counterparty Accounts Receivable 10,933 11,654 reimburses the company for the difference. As the purpose of Loans to Cultural and Sporting these contracts is to limit risk rather than fix a price, it is not Organisations 4,393 4,101 possible to calculate a face value for these contracts. Shares gifted in Trust 515 579 Due to the lack of liquidity in the market as at 31 March, Loan Repayment Investments 7,742 11,545 it is not practicable to assign a fair value to such contracts. The face value of contracts held at 31March 1998 was as follows: (ii) Group Financial Year $000's Cash and Bank 39,963 24,311 1999 84,993 Short Term Investments 56,818 44,725 Accounts Receivable 78,464 82,106 2000 43,101 Loans to Cultural and other Orgs 4,393 4,101 2001 14,355 Shares Gifted in Trust 515 579 Loan Repayment Investments 7,742 11,545 Long Term Investments 25,718 18,851 (d) Concentration of Credit Risk Financial instruments which potentially subject the Group No collateral security is held for the above. to concentrations of credit risk consist principally of cash and short term investments, trade and notes receivable and various (c) Off-Balance Sheet Risk off-balance sheet instruments. Interest rate swaps may be employed by the Council’s The Group places its cash and short term investments with subsidiaries to manage interest rate exposure. Fluctuations in high-credit-quality financial institutions and sovereign bodies interest rates give rise to market risk. and limits the amount of credit exposure to any one financial institution in accordance with its treasury policy. Contracts have been entered into with various counterparties, Concentrations of credit risk with respect to accounts having such credit ratings and in accordance with such dollar receivable are limited due to the large number of customers limits as set forth by authorised policies. No collateral or other included in the subsidiary’s customer base. security is required to support financial instruments with credit risk. While the Group may be subject to credit losses up to the notional principal or contract amounts in the event of non (e) Fair Values performance by its counterparties, it does not expect such losses to occur. For all financial instruments other than the following, the carrying amount is assessed as being fair value. The notional principal or contract amounts outstanding at 1998 1997 30 June are as follows: $000's $000's 1998 1997 Parent $000's $000's Foreign Currency Forward Parent Exchange Contracts 0 0 Foreign Currency Forward Exchange Contracts 0 0 Group Interest Rate Options (6) (54) Group Interest Rate Swaps and FRAs 5,076 3,906 Interest Rate Swaps and Forward Rate Agreements (FRAs) 478,000 445,000 Interest Rate Options 10 25 Foreign Currency Forward Exchange Contracts 1,076 110
27 NOTES TO FINANCIAL STATEMENTS
NOTE 27: Operational Assets: GROUP OPERATIONAL ASSETS AS AT 30 JUNE 1998 Valuation Accumulated Value Value or Cost Depreciation 30 June 1998 30 June 1997 $000's $000's $000's $000's Land 232,148 0 232,148 227,992 Site Improvements 581 19 562 0 Buildings 448,111 18,305 429,806 345,957 Plant and Chattels 163,913 79,148 84,765 84,389 Buses 10,583 3,213 7,370 3,678 Mobile Plant 33,645 16,831 16,814 18,517 Sealed Surfaces 29,019 17,098 11,921 12,553 Energy Distribution System 784,772 27,250 757,522 742,030 Harbour Structures 33,837 7,276 26,561 21,872 Vessels 3,551 1,604 1,947 2,104 Other Assets 38,665 15,538 23,127 46,618
$1,778,825 $186,282 $1,592,543 $1,505,710
Christchurch International Airport Limited Land and Buildings, with a book value of $81,526K (1997 $80,714K), have a fair value of $188,170K (1997 $121,687K) as determined by an independent registered valuer. An amount of $5,796K being a provision for resealing airport surfaces has been deducted from Fixed Asset totals in 1998 (1997 $5,696K). Christchurch City Council Operational Assets are as follows: Valuation Accumulated Value Value or Cost Depreciation 30 June 1998 30 June 1997 $000's $000's $000's $000's Land 127,718 0 127,718 124,724 Buildings 255,243 4,840 250,403 242,254 Buildings in Progress - New Brighton Pier 0 0 0 2,918 - Other 37,713 0 37,713 10,264 Plant 32,344 19,765 12,579 13,733 Work in Progress - Plant 1,538 0 1,538 795 Chattels 34,258 22,784 11,474 10,074 Library Books 25,697 15,422 10,275 8,635 Mobile Plant 33,644 16,831 16,813 18,516
$548,155 $79,642 $468,513 $431,913
Net book value of land and buildings at 30 June 1998 is considered to be fair value. NOTE 28: Infrastructural Assets: CHRISTCHURCH CITY COUNCIL AND GROUP Valuation Accumulated Value Value or Cost Depreciation 30 June 1998 30 June 1997 $000's $000's $000's $000's Bus Shelters 373 27 346 213 Roading 880,544 106,112 774,432 762,031 Sewers 237,965 34,256 203,709 202,386 Stormwater 208,334 27,102 181,232 179,180 Water Reticulation 146,067 15,858 130,209 128,349 Water Meters 7,569 2,639 4,930 5,019 Streetlights 15,569 4,949 10,620 9,723 Traffic Lights 4,474 2,029 2,445 2,454 Water Pumping Stations 13,342 4,836 8,506 7,809 Sewer Pumping Stations 4,073 1,703 2,370 2,395 $1,518,310 $199,511 $1,318,799 $1,299,559
The ownership of urban portions of the State highway network is unclear although there is legal opinion indicating that the ownership rests within local authorities. Transit NZ maintains the carriageway of the highway in their entirety without any costs accruing to local authorities. As a consequence, even if ownership resides with local authorities, in practice, Transit NZ controls the economic resources. Pending clarification of ownership and further consideration of the accounting issues which may arise, the Christchurch City Council has not recognised the urban portion of the state highway network as an asset in these financial statements.
28 NOTES TO FINANCIAL STATEMENTS
NOTE 29:
Restricted Assets: CHRISTCHURCH CITY COUNCIL AND GROUP Valuation Accumulated Value Value or Cost Depreciation 30 June 1998 30 June 1997 $000's $000's $000's $000's Art Works 20,364 0 20,364 20,203 Library Books NZ Room 4,335 0 4,335 4,233 Reserve Land and Improvements 230,264 0 230,264 219,273 Buildings - Historic 9,719 138 9,581 8,729 Properties held in Trust for other organisations 53 0 53 53
$264,735 $138 $264,597 $252,491
Net book value of land and buildings at 30 June 1998 is considered to be fair value.
NOTE 30: NOTE 33: Subsequent Events: Annual Residents Survey: Subsequent to balance date, Southpower Limited and These indicators are based on the Annual Residents Survey Enerco Limited have sold their energy trading assets and of Participation and Satisfaction. This has been designed by undertakings. Other than this, there are no subsequent balance Statistics NZ and implemented by National Research Bureau date events in relation to the Council or its subsidiaries that Ltd under contract to the Christchurch City Council. Where materially affect the financial statements. actual results from the survey are included in the Statement of Service Performance, these are based on interviews conducted NOTE 31: with 803 Christchurch City residents in April/May 1998. Related Party Transactions: This sample size and method of sample selection means There have been no transactions between Christchurch City that the sample error at the 90% confidence interval is plus/ Council and companies/organisations on which Councillors are minus 3% for those questions applicable to all respondents. directors or executive members, other than those eliminated on That is, there is a 90% probability that the result is within 3% consolidation. Charges between the related parties are made in of that obtained were the total population surveyed. the normal course of business including payment and receipt of inter group dividends and interest on inter company debt. NOTE 34: These have been eliminated on consolidation. Parking Survey NOTE 32: These indicators are based on results drawn from surveys of off street and on street car parkers designed by the There is a difference between Annual Plan and Annual Department of Statistics actioned by Parking Unit staff. 266 Report in respect of the amount shown in the Estimates. This off street car park users and 208 on street car park users were difference has been brought about by the full allocation of interviewed in 1998. The estimated sampling error for these Support Services costs to External Significant Service Delivery surveys lies within the +/-3% range. Costs. 1998 Estimates figures are restated. This allocation does not alter the total amount shown in the Annual Plan.
29 NOTES TO FINANCIAL STATEMENTS
NOTE 35: Contingencies: Contingent Liabilities: (a) Christchurch City Council has the following contingent liabilities: Contingent Assets: 1998 1997 $000's $000's (a) The following buildings are to be vested in Christchurch - Christchurch City Holdings City Council: Ltd - Uncalled Capital 138,999 138,999 1998 1997 $000's $000's $138,999 $138,999 - Nurses Chapel (Valuation) 360 360
(b) Subsidiaries There are also contingent liabilities arising from claims The following contingent assets related received through the Employment Court with the transfer to Lyttelton Port Company: of staff from Christchurch Transport to Christchurch - Claims re previous Harbour Board Transport Limited and claims from parents of children Loan 0 525 attending the Civic Child Care Centre. The financial effect of these claims cannot be quantified. $0 $525 (b) Contingent liabilities also exist in subsidiaries relating to: NOTE 36: Parent Commitments: 1998 1997 At balance date capital commitments were $32,552K Performance Bonds - Christchurch $000's $000's including $7,940K as agent for Christchurch City Facilities Transport Ltd 874 734 Ltd Performance Bonds - Canroad Construction Ltd 20 93 At balance date operating commitments were as follows: Taxation - Southpower Ltd 13,500 9,900 Contracts - Southpower Ltd 0 14,512 1998 $000's $14,394 $25,239 Under 1 year 8,490 1-2 years 6,573 2-5 years 12,062 (c) Following the issue of a legal opinion by the Crown Law Over 5 years 4 Office, a national issue as to the correctness of levying certain uniform annual charges on rating apportionments is $27,129 under review. Due to the considerable uncertainty surrounding the issue, Council has not raised a provision in these accounts. The potential impact is that Council may Comparative figures are not available for the parent as have to refund up to $886,000 of uniform annual charges. commitment obligations beyond the first year were not This issue affects all councils in New Zealand who include compiled for the 1997 financial year. Total parent uniform annual charges as part of their general rates. commitments at 30 June 1997 were $42,012K.
(d) Subsquent to balance date, a statement of claim has Subsidiary Company Commitments: been filed against the Council in relation to a resource At balance date capital commitments were $19,495K (1997 consent granted in June 1995. Damages of $2 million are $50,158K). being claimed. The Council is defending this claim. At balance date lease commitments were as follows: (e) The deduction of certain expenditure incurred over a 1998 1997 number of years by the Enerco Group was disallowed as $000's $000's revenue expenditure by the Inland Revenue Department Under 1 year 1,988 2,742 ("IRD"). The Enerco Group lodged an objection to this 1-2 years 1,085 3,347 reassessment of income and won its case in the High Court. 2-5 years 562 1,893 The IRD has appealed this decision. If the Enerco Group is Over 5 years(1) 2,246 1,800 unsuccessful then additional tax of up to $9.1 million (31 March 1997 $9.1 million) plus interest would be payable in $5,881 $9,782 respect of these assessments, $4.4 million (31 March 1997 $4.4 million) of which has been paid on a without prejudice basis in terms of the Income Tax Act 1976. If the Enerco (1) Christchurch City Facilities Limited has leased land from Group is successful in its claim then it will receive a refund Addington Raceway Limited for the Sports and Entertainment of the amount paid plus interest. This amount is included site. The lease has a 50 year term from 2 December 1996 with in the Taxation Prepayment in the Statement of Financial a right of renewal. The minimum annual lease payment is Position. $40,000.
30 NOTES TO FINANCIAL STATEMENTS
NOTE 37: NOTE 39: Statement of Cash Flows: Taxation: The closing cash balance at 30 June 1998 comprises the (a) Parent 1998 1997 following amounts: $000's $000's Net Surplus/(Deficit) Before Tax 31,152 26,399 1998 1997 Parent: $000's $000's Prima Facie Tax Expense at 33% 10,280 8,712 Cash on hand 30 26 Bank 0 1,264 Short Term Investments 56,818 44,725 Permanent Differences 162 (5,123) Bank Overdraft (748) (3) Imputation Credits (10,236) (3,362) Tax Credit Re Group Losses (206) (227) $56,100 $46,012 Income Tax Expense $0 $0 Group: Cash on hand 30 26 Bank 39,933 24,285 (b) Group 1998 1997 Bank Overdraft (42,448) (27,918) $000's $000's Short Term Investments 56,818 44,725 Net Surplus Before Tax 90,839 83,101
Prima Facie Tax Expense at 33% 29,977 27,423 $54,333 $41,118
Cash balances at end of year include Special Funds and Tax Credit Re Group Losses 0 (235) Trusts which are restricted in their use. The balances of Timing Differences Not Recognised (1,357) (1,715) these funds amount to $42,274K at 30 June 1998 Permanent Differences 4,042 (7) ($32,165K at 30 June 1997). Loss Not Previously Recognised (226) 0 Under/(Over) Provision (2,182) (2,160)
NOTE 38: Income Tax Expense $30,254 23,306 Reconciliation of Net Operating Cash Flow and Operating Surplus (Deficit): Comprising: Group Parent Current Taxation 20,208 24,524 1998 1998 Deferred Taxation 10,046 (1,218) $000's $000's $30,254 $23,306 Net Surplus After Taxation 60,585 31,152 Non Cash Items Depreciation 97,869 48,527 Deferred Taxation: 1998 1997 Increase/(Decrease) in Deferred Tax 10,046 0 $000's $000's Write Off Goodwill 1,584 0 Opening Balance (1,161) (2,379) Vested Assets (16,600) (16,600) Current Year (10,046) 1,218 Other Movement in Minority Interest 449 0 Increase in Landfill Aftercare Provision 13,800 13,800 Deferred Tax Asset /(Liability) ($11,207) ($1,161) Movements in Working Capital Items Decrease/(Increase)in: Accounts Receivable & Accruals 3,249 (2,901) Unrecognised future income tax benefits from timing Taxation Receivable (4,392) 0 differences existing in the Group amount to $2,220K (1997 Inventory 2,653 (99) $3,694K). Group overseas tax losses, with restrictions on use, Increase/(Decrease)in: amount to $1,940K (1997 $1,539K). Group tax losses carried Accounts Payable and Accruals (14,768) (4,907) forward amount to $8,236K (tax effect $2,718K) (1997 Taxation Payable 297 (155) $6,176K and $2,038K respectively). Non-current Employee Entitlements 94 246
Less Items Classified as Investing: Net (Gain)/Loss on Sale of Fixed Assets (949) (300) Movement in Fixed Asset related Accounts Payable 4,900 2,770
Net Cash Inflow/(Outflow) from Operating Activities $158,817 $71,533
The following items are presented as Net: (a) Goods and Services Tax (b) Short Term Money Market Investments
31 NOTES TO FINANCIAL STATEMENTS
NOTE 40: NOTE 42: Transit NZ Funded Activities: Remuneration: Section 31 of the Transit New Zealand Act requires the The City Manager of the Christchurch City Council, Council to separately disclose those activities which receive appointed under Section 119C(1)(a) of the Local Government funding from Transit New Zealand (TNZ). The Council has Act 1974, received a salary of $161,165 for the financial year several activities or functions which receive funding, either ended 30 June 1998. directly or indirectly from this source. These activities/ In terms of his contract, the City Manager also received the functions are disclosed in this section. Estimates for these items following additional benefits: cannot be separately identified. Functions and objectives of the Item Benefit to Tax Paid to Cost to Business Units involved are provided in the respective Service City Inland Revenue Council Performance Statements. Manager Department Works Operations Business Unit: 1998 1997 $000's $000's Allowances 5,985 1,688 7,673 Revenue from TNZ Minor and Superannuation Subsidy 10,798 5,318 16,116 Ancillary Works (4,787) (4,185) Use of Motor Vehicle 8,943 4,382 13,325 Revenue from Other Activities (33,391) (35,359) $25,726 $11,388 $37,114 Total Works Performed (38,178) (39,544) Total Operating Costs (37,767) 38,612 For the year ended 30 June 1998, the total annual cost Surplus on Operations ($411) ($932) including fringe benefit tax, to the Christchurch City Council, of the remuneration package of the City Manager is calculated at $198,279 (1997$195,056) of which $186,891 (1997 The (surplus)/deficit is transferred to the Council’s general $183,904) is the total benefit received by the postholder. fund. In addition 35 Senior Managers are employed on contracts In-house Professional Services: for periods between 3 and 5 years. The four Directors are City Streets Business Unit: 1998 1997 employed on remuneration packages in the following range: $000's $000's Annual Salary $110,000 to $130,000 Revenue from In-house Professional Other elements of remuneration $25,000 to $35,000 Services for TNZ Financially The remaining 31 senior unit managers on contract are Assisted Roading (434) (263) employed on salaries in the following ranges. Additional Revenue from Other Activities (4,871) (5,011) benefits are generally between 10% and 20% of salary and consist of superannuation subsidy, professional fees and use of a Total Works Performed (5,305) (5,274) vehicle varying from limited private use to no private use: Total Operating Costs 5,305 5,274 Salary Range Number in 1997 Deficit on Operations $0 $0 range $60,000 - $70,000 5 9 $70,000 - $80,000 11 9 City Design Business Unit: 1998 1997 $80,000 - $90,000 12 9 $000's $000's $90,000 -$100,000 2 5 Revenue from In-house Professional $100,000 -$110,000 1 0 Services for TNZ Financially Assisted Roading (679) (400) 31 32 Revenue from Other Activities (5,533) (4,744) NOTE 43: Total Works Performed (6,212) (5,144) Cost of Severance Payments: Total Operating Costs 5,937 4,910 Section 223E(7A) of the Local Government Act 1974 requires any severance payments, including the tax liability, that Net (Surplus) Deficit on Operations ($275) ($234) exceeds $50,000 to be reported. For the year ended 30 June 1998, the following payments were made: (1997 Nil.) Building Inspector $54,151 The (surplus)/deficit is returned to the Council’s general Clerk $57,701 fund.
NOTE 44: NOTE 41: Grants/Contributions to Enhancement 1998 1997 Projects $000's Minority Interest: $000's $000's New Zealand Lottery Grants Board for Christchurch International Airport WestpacTrust Centre 4,000 Limited 28,665 27,576 The Community Trust Grant for WestpacTrust Lyttelton Port Company Limited 11,269 16,915 Centre 600 Southpower Limited 163,722 160,602 Other Sponsorships and Contributions 367 $4,967 $203,656 $205,093
32 SUMMARY OF ACTIVITIES
Costs (After Internal Recoveries) Income Net Costs Estimate Actual 1998 1998 1998 1998 1997 $000's $000's $000's $000's $000's A (i) SUMMARY OF SERVICE DELIVERY ACTIVITES Art Gallery 2,200 (392) 1,808 1,867 1,598 Car Parking 4,857 (8,283) (3,426) (2,894) (3,097) City Streets 45,050 (11,601) 33,449 35,040 35,491 Convention and Entertainment Facilities 731 (130) 601 2,300 2,575 Economic Development and Employment 6,685 (1,698) 4,987 5,282 5,564 Environmental Policy and Planning 3,629 (12) 3,617 4,129 3,239 Environmental Services 15,215 (9,022) 6,193 5,323 4,963 Housing 6,650 (9,437) (2,787) (1,619) (1,579) Leisure and Community Services 15,399 (4,781) 10,618 11,138 9,228 Library Services 14,345 (1,165) 13,180 13,324 12,633 Parks 14,068 (1,424) 12,644 13,673 13,684 Public Accountability 6,618 0 6,618 6,713 5,499 Refuse 13,047 (9,196) 3,851 3,582 3,016 Service Delivery and Advice 4,394 (680) 3,714 3,870 3,383 Sewerage 18,276 (2,078) 16,198 16,362 15,192 Water Services 23,833 (3,517) 20,316 20,865 18,692
Total Cost of Service Delivery 194,997 (63,416) 131,581 138,955 130,081 Less Interest (7,013) 0 (7,013) (8,546) (5,728) Add Back Service Provider Income 9,630 (9,630)
$197,614 ($73,046) $124,568 $130,409 $124,353
(ii) Year Ended 30 June 1998:
Represented in Statement of Financial Performance as: Activities 149,087 Depreciation 48,527
$197,614
(iii) Interest expense in the Statement of Financial Performance includes:
Interest allocated to significant activities 7,013 Unallocated interest 546
$7,559
Income Net Result Net Result After Tax After Tax After Deducting After Deducting Minority Interest Minority Interest 1998 1997 $000's $000's $000's B SUMMARY OF CONSOLIDATING SUBSIDIARY AND ASSOCIATED ORGANISATIONS Canroad Construction Ltd 5,141 231 142 Canterbury Technology Park 379 188 411 Christchurch City Facilities Ltd 6,043 (3,553) (43) Christchurch City Holdings Ltd 56,628 45,001 17,866 Christchurch International Airport Ltd 48,477 10,925 5,059 Christchurch Transport Ltd 15,985 1,696 1,023 Lyttelton Port Co Ltd 53,000 12,847 12,290 Selwyn Plantation Board Ltd 4,931 583 915 Southpower Ltd 507,208 30,240 25,180 Streetworks Management Christchurch Ltd 4 (20) (16) Travis Finance Ltd 740 (337) (1,048) Windsor Central Ltd 35 (85) (659)
Total $698,571 $97,716 $61,120
Individual Activity Reports are reported on the following pages.
33 ART GALLERY
A public art museum comprising the Robert McDougall Art Gallery located in the Botanic Gardens and the Art Annex at the Arts Centre. These facilities provide the basis for mounting exhibitions, acquiring works of art, holding public lectures and seminars, implementing educational programmes and providing reference material on the visual arts.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1998/99 Performance Indicators Actual Target 1. To enhance the cultural wellbeing 1.1 Residents satisfied with value of Council of the community through the spending on the Art Gallery, at least 61% 63% cost effective provision and the development of an art museum to 1.2 Number of Gallery/Annex visits, at least 268,857 235,000 maximise enjoyment of visual art exhibitions, and to promote public 1.3 Residents visiting Art Gallery and/or Art appreciation of the Canterbury Annex once or more during the year, at least 65% 55% Region’s art heritage by collecting, conserving, studying, and disseminating knowledge of works of art.
2. Continue the programme of art 2.1 Number of art works conserved, at works conservation. least 280 53
3. Acquire art works and 3.1 Number of art works acquired, at develop the collection. least 124 60
4. Mount and promote a 4.1 Number of exhibitions/installations held programme of art works during the year, at least 22 25 exhibitions and disseminate knowledge about the collection.
5. Provide a programme of cultural 5.1 Number of Cultural Events, more than 204 126 and educational activities focused on the visual arts. 5.2 Number of School Visits, more than 567 groups 426 groups
6. Maintain an adequate level of 6.1 Resident visitors satisfied with Art Gallery service that meets the National and/or Art Annex visit(s), at least 84% 80% Standards and the needs of the public.
7. Prepare project terms of reference 7.1 Project terms of reference for new Christchurch 30 July by and brief of the new Christchurch Art Gallery distributed for public comment 1997 31 July 1997 Art Gallery. and input
7.2 Initial brief for new Christchurch Art Gallery 28 February by 1998 28 February 1998
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998
1998 1998 1998 1998 1997 COSTS INCOME NET ESTIMATE ACTUAL (After COST NET COST NET COST Internal Recoveries) $000's $000's $000's $000's $000's
OPERATIONAL OUTPUTS
Art Collections 598 (82) 516 585 484 Exhibitions 1,162 (251) 911 910 815 Information and Advice 440 (59) 381 372 299
COST OF SERVICE $2,200 ($392) $1,808 $1,867 $1,598
NOTES ($000s): External Revenue included in Income is: Actual 1998 $392, Estimate 1998 $382, Actual 1997 $257. Depreciation included is: Actual 1998 $76, Estimate 1998 $115, Actual 1997 $73. Refer to Note 33.
34 CAR PARKING
Management and administration of off-street and kerbside parking facilities with city wide enforcement of parking bylaws and regulations, utilising 2,450 metered spaces, 328 coupon spaces, 14 off street parking buildings, 3,233 spaces. Facilities employ 49 FTE staff.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target 1. Fair and efficient parking 1.1 Average paid compliance rate in metered 73% 60% enforcement and related and coupon parking areas. administration involving better parking habits and reduced 1.2 Number of motorists surveyed who consider 68% 50% offending. parking officers apply 'the rules' fairly.
2. Efficient and effective provision 2.1 Vehicles parked in staffed off street 48% & 82% 52% & 86% of the on and off street parking facilities at average overall and peak time resource. occupancy rates of
2.2 Users of off street parking facilities satisfied 68% 68% with service provided (average of four factors), at least
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998
1998 1998 1998 1998 1997 COSTS INCOME NET ESTIMATE ACTUAL (After COST NET COST NET COST Internal Recoveries) $000's $000's $000's $000's $000's
OPERATIONAL OUTPUTS
Enforcement 2,316 (3,037) (721) (383) (465) Parking Operations 2,484 (5,237) (2,753) (2,544) (2,666) Abandoned Vehicles 57 (9) 48 33 34
COST OF SERVICE $4,857 ($8,283) ($3,426) ($2,894) ($3,097)
NOTES ($000s):
External Revenue included in Income is: Actual 1998 $8,283, Estimate 1998 $8,750 Actual 1997 $7,890. Depreciation included is: Actual 1998 $248, Estimate 1998 $370, Actual 1997 $235. Refer to Notes 33 & 34.
35 CITY STREETS
Researching and planning to meet the city’s future access and parking needs; detailed monitoring and management of present traffic patterns; and programming and managing the implementation of works for the maintenance of the city’s street and bridge system. The roading network comprises 1,484km of carriageway, 110 bridges, 2,268km of kerbs and channel, and 2,110km of sealed footpaths. STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target
1. People are satisfied with the 1.1 Satisfaction level with different modes Car 88% Refer note below level of service for personal among representative sample of population. Bus 81% mobility, and they have an Cycle 82% appropriate choice of transport Walk 89% mode - by car, public transport, cycle or foot. 1.2 Comparative economic and community Car $0.73 cost of each mode reported as cost/km. Bus $0.84 Cycle $0.89 Walk $3.52
1.3 Comparative travel speed measured for each Car 41.6 mode in km/hr. Bus 17.7 Cycle 15.0 Walk 4.0
2. Businesses and therefore the 2.1 Trend over time for length of travel time Morning peak 3.8% economy, are supported by on key major access routes at peak and off- Off peak 0.7% levels of service for goods peak times - percentage decrease. Afternoon peak 7.6% movement that are consistent with efficient business 2.2 Satisfaction levels among the business Car 71% operations. community with the efficiency of the road Van 66% network. Truck 64%
3. Christchurch is perceived a safe 3.1 Perception of daytime safety experienced Car 81% city for road users. versus that expected among a representative Bus 90% sample of residents for each mode by Cycle 61% journey type and location. Walk 78%
3.2 Percentage decrease /(increase) in serious Car 2.1% injury crashes from previous year. Bus 0% Cycle 13.0% Walk (3.9%)
4. Christchurch is safe and 4.1 Satisfaction with cycle safety during the day 61% accessible for cyclists. among a representative sample of residents, both cyclists and non-cyclists.
4.2 Percentage decrease /(increase) in serious Information not injury cycle crashes from previous year. yet available
5. More people use public 5.1 Use of public transport per capita. 27.0 trips transport than they do today and it keeps growing as a 5.2 Proportion of public transport trips to all Not measured proportion of all trips. trips.
6. Christchurch is regarded as a 6.1 Satisfaction with ease of access and 71% pedestrian friendly city - of motorist attitude to pedestrians among a 58% especially for children, the representative sample of residents. elderly and the disabled. 6.2 Percentage decrease /(increase) in serious Information not injury accidents for pedestrians from previous yet available year.
7. The streets meet agreed 7.1 Satisfaction with street assets among a 72.5% community expectations and representative sample of residents (average of they are managed in the most 8 factors). cost effective way. Not meaningful 7.2 Overall measure (indices) of standard without a comparative compared to cost. standard
NOTE: No benchmarks or targets for the indicators were included in the Plan. These were to be developed as City Streets entered into the first round of measurement during the 1997/98 year.
36 CITY STREETS
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target
8. The City's physical 8.1 Trend measure of transport generated Not measured environment is protected and pollution over time. enhanced. 8.2 Satisfaction with protection and 78% enhancement of 'Garden City' image 68% and community value of street space.
8.3 Proportion of length of street with trees Not measured to total length of street where trees can be planted.
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998
1998 1998 1998 1998 1997 COSTS INCOME NET ESTIMATE ACTUAL (After COST NET COST NET COST Internal Recoveries) $000's $000's $000's $000's $000's
OPERATIONAL OUTPUTS
Output Agreement Administration 505 (58) 447 653 503 Planning 2,525 (205) 2,320 1,042 1,392 Roading and Traffic Advice - Service Centres 298 0 298 117 498 Customer Services 565 (573) (8) 666 727 TNZ Output Agreements (293) (228) (521) 0 (252) Provision for Roading Land 22,278 (149) 22,129 22,897 20,886 Roading System Maintenance 18,703 (5,202) 13,501 14,445 15,842 Tram Operation 469 (213) 256 802 263 Transfer from LTDA for Infrastructural Assets 0 (4,973) (4,973) (5,582) (4,368)
COST OF SERVICE $45,050 ($11,601) $33,449 $35,040 $35,491
NOTES ($000s):
External Revenue included in Income is: Actual 1998 $11,601, Estimate 1998 $16,166, Actual 1997 $11,362 Depreciation included is: Actual 1998 $19,497, Estimate 1998 $19,090, Actual 1997 $18,880. Refer to Note 33.
37 CONVENTION AND ENTERTAINMENT FACILITIES
Promoting and operating the Town Hall, Convention Centre, and Sports and Entertainment Centre venues for cultural, conference, entertainment and sporting events. Operations include marketing and promotion, the provision of 'front of house' functions and theatrical, ticket sales, building maintenance and catering servcices.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target 1. Provide cultural, social and 1.1 Residents satisfied with the value for money of economic benefit to the rates spent on the Town Hall and Convention Christchurch community by Centre, at least 71% 69% promoting the facilities as the pre-eminent venues in the city for presenting the performing arts, conventions and trade exhibitions, sports and entertainment.
2. Wide ranging community use of 2.1 Total number of Town Hall and Convention all facilities. Centre visits, at least 505,000 590,000
2.2 Residents visiting one or more Town Hall and Convention Centre venues at least once during the year, at least 56% 63%
3. Significant economic impact of 3.1 Increase the average nights stayed by tourists over the Convention Centre to the the previous year, at least -1.22% 2.5% Christchurch economy.
4. Project an image to venue users 4.1 Customers rating quality of staff service during the of the highest possible quality. year (across all categories) as good or better, at least 72% 70%
4.2 Customers satisfied with visits to Town Hall and Convention Centre during the year (across all venues), at least 87% 80%
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998
1998 1998 1998 1998 1997 COSTS INCOME NET ESTIMATE ACTUAL (After COST NET COST NET COST Internal Recoveries) $000's $000's $000's $000's $000's
OPERATIONAL OUTPUTS
Venue Operation 731 (130) 601 2,300 2,575
COST OF SERVICE $731 ($130) $601 $2,300 $2,575
NOTES ($000s):
The costs shown include depreciation of $544 (1997 $446). Refer to Note 33.
38 ECONOMIC DEVELOPMENT AND EMPLOYMENT
Provision of information, support services, marketing, incentives and co-ordination to encourage and assist economic growth, job creation and tourism.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target 1. Sustainable economic 1.1 Residents satisfied with the value for money development and increased of rates spent on economic development, at least 48% 69% employment through ensuring the co-ordinated provision of information, advisory, support and marketing services which result in the level of investment and the number of jobs in the City being greater than would otherwise be the case.
2. Conduct regular seminars/ 2.1 Participants at seminars/workshops rate them workshops to help identify and/or as very useful or useful, at least 93% 70% create business opportunities with growth potential.
3. Further investigate and promote 3.1 Successful Investor/Investee match from the 5 but business investment and local Directory of Business Opportunities during scheme only 15 projects purchasing opportunities in the year, at least operated for Canterbury. 5 months 3.2 Maintain current information of businesses on BUSINESS LINK, minimum of 4750 5000 businesses
3.3 Achieve a purchase rate for direct enquiries, 32% 30% minimum of
4. Continue the Business in the 4.1 Maintain a comprehensive directory to facilitate Community Programme to matching of mentors with businesses requiring 89 50 mentors stimulate business survival, help with a minimum listing of growth and employment generation in Canterbury.
5. Provide a programme of job 5.1 Contribute to job creation projects for young 12 10 projects assistance and job placements unemployed people, at least to help youth and other unemployed persons. 5.2 Provide work opportunities in community organisations/non profit sector, at least 400 400 people over 24 years old
6. Support the infrastructure of 6.1 Contribute to the development/maintenance community groups working with of the infrastructure of community groups the unemployed. working with the unemployed, at least 26 5 groups
6.2 Said groups formally express satisfaction 89% 100% with support provided
7. Provide advice and information 7.1 Days Visitor Centre open, at least 364 364 days to tourists through Centre to have the following visitor numbers Information Office Services and counter advice January to March, per day 1622/522 1650/700 July to September, per day 1398/391 450/220
7.2 Visit or host overseas travel wholesalers during 66 hosted 30 wholesalers the year, at least
7.3 The Christchurch Convention Bureau prepares bid documents on behalf of organisations seeking to bring conferences to Christchurch, at least 36 10
8. Implement and monitor the 8.1 Persons who are Non City Centre workers, Marketing Strategy for the City but have visited City Centre in year ended Centre. 30 June 1998, at least 94% 90%
39 ECONOMIC DEVELOPMENT AND EMPLOYMENT
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target
8.2 Residents of Christchurch who have visited City Centre in year ended 30 June 1998 for non-work purposes, at least 96% 70%
9. Continue to develop the Sister 9.1 Co-ordinate an Adelaide Trade Delegation Cities programme, to enhance the visit to Christchurch in March 1998 November 1997 city internationally. with an involvement by a minimum of 10 10 local companies
9.2 Co-ordinate through sister city committees 7 3 projects by educational exchange projects 30 June 1998
9.3 Co-ordinate a community delegation visit to Gansu Province in August 1997 August 1997 with a minimum of 26 30 people
10. Encourage international 10.1 Visit Christchurch schools to promote understanding and awareness concept of sister cities, minimum of 5 6 by active promotion of cultural, educational, commercial, 10.2 Profile existing relationships within sporting and friendship Christchurch public libraries, minimum of 7 6 exchanges between Sister Cities.
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998
1998 1998 1998 1998 1997 COSTS INCOME NET ESTIMATE ACTUAL (After COST NET COST NET COST Internal Recoveries) $000's $000's $000's $000's $000's
OPERATIONAL OUTPUTS
Advice to Council 55 0 55 48 40 Business Information and Advice 308 0 308 319 289 Business and Economic Promotion 323 0 323 322 297 Visitor Promotions 872 0 872 872 815 Employment and Training Scheme Administration 2,963 (1,445) 1,518 1,737 2,276 Employment Promotion 323 (14) 309 298 326 Turning Point 2000 306 (35) 271 200 151 City Promotional Activity 349 (12) 337 396 375 Central City Promotions 293 (109) 184 232 226 Central City Retail Marketing 589 (83) 506 579 512 Sister Cities 304 0 304 279 257
COST OF SERVICE $6,685 ($1,698) $4,987 $5,282 $5,564
NOTES ($000s): External Revenue included in Income is: Actual 1998 $1,698, Estimate 1998 $1,839, Actual 1997 $1,332. Depreciation included is: Actual 1998 $128, Estimate 1998 $93, Actual 1997 $119. Refer to Note 33.
40 ENVIRONMENTAL POLICY AND PLANNING
Planning for and managing the use, development and protection of the natural and physical resources of the City in a manner which enables the City, and its communities and people, to provide for their social, economic and cultural needs in a sustainable, healthy and safe way while meeting the reasonably foreseeable needs of future generations.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target 1. Manage the use, development 1.1 Residents satisfied with the value for money and protection of the natural and of rates spent on overall city and environmental physical resources of the City in a planning, at least 62% 60% manner which enables the city, and its communities and people, to provide in a sustainable, healthy and safe way for their social, economic and cultural needs. Establish and review objectives, policies and methods for minimising adverse and promoting beneficial effects of activities on the environment, including people and communities.
2. Assist with the hearing of 2.1 Reports completed within the time frame 100% 100% submissions on the City Plan, set down by the City Plan process particularly as they relate to the objectives and policies.
3. Prepare concept plans for 3.1 Complete within budget by Achieved 30 June 1998 environmental improvement of Central City, neighbourhood improvement plans and urban renewal programmes.
4 Prepare concept plans for areas 4.1 Complete by Partially 30 November 1997 of the natural environment complete strategy for the City.
5.Undertake detailed studies of parts 5.1 Complete by Achieved 30 June 1998 of the City subject to change and growth.
6. Continue to assess applications 6.1 Provide assistance to owners of 18 6 listed buildings for grants to help to retain listed by 30 June 1998 heritage buildings.
41 ENVIRONMENTAL POLICY AND PLANNING
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998
1998 1998 1998 1998 1997 COSTS INCOME NET ESTIMATE ACTUAL (After COST NET COST NET COST Internal Recoveries) $000's $000's $000's $000's $000's
OPERATIONAL OUTPUTS
Plans and Policy Statements 912 0 912 723 921 Consents and Applications 155 0 155 134 152 Policy Advice 2,001 (12) 1,989 2,593 1,556 Information 247 0 247 281 304 Environmental Promotion 170 0 170 203 170 Monitoring 131 0 131 173 119 Funds Administration 13 0 13 22 17
COST OF SERVICE $3,629 ($12) $3,617 $4,129 $3,239
NOTES ($000s):
External Revenue included in Income is: Actual 1998 $12, Estimate 1998 $15, Actual 1997 $24. Depreciation included is: Actual 1998 $51, Estimate 1998 $46, Actual 1997 $55. Refer to Note 33.
42 ENVIRONMENTAL SERVICES
Administering and enforcing statutory regulation of building and development work, the health and safety of licensed premises activities and the keeping of dogs.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target 1. Ensure statutory purposes and 1.1 Residents satisfied with the value for money principles of building control, of of rates spent on regulating activities and health, dangerous goods and liquor investigating nuisances, at least 48% 57% licensing and of animal control are achieved with minimal compliance costs.
2. Complete the process of hearing 2.1 Complete hearing of submissions submissions and cross submissions and cross submissions to City Plan by 90% 31 October 1998 for the City Plan. by 30 June 1998
3. Administer the City Plan in an 3.1 Meet the following consent applications efficient and effective manner. processing standards (unless an extension is authorised) Of flat plan applications within 90% 95% in 20 working days Of subdivision applications within 65% 70% in 20 working days Of non-notified resource consents which do not require a hearing within 72% 95% in 20 working days Of notified resource consents within 57% 80% in 70 working days
3.2 Residents who believe building or land developments in their local area during the year, have made their area worse, no more than 11% 12%
4. Minimise situations which cause 4.1 Respond to complaints of excessive nuisance or objectionable effects noise within an average of 30 minutes of 31 Minutes 30 minutes on human health and safety. notification and in case of unreasonable noise, commence investigation upon receipt of complaint within 100% 2 working days within 2 working days 4.2 Residents experience no problems during the year from neighbour/industrial and commercial noise, at least 76%/91% 80/93%
5. Inspect registered premises to 5.1 All food premises identified as being 92% All ensure compliance with required at risk in terms of safety to be inspected at premises environmental health standards. least once per year at least once
6. Process building consent 6.1 Subject to provision of complete applications within the time information, process building consent limits prescribed by the Building applications within the time limits Act. prescribed by the Building Act 90% 90%
7. Effective control of dog nuisance 7.1 Residents experiencing no problems occurrence. during the year, from barking/wandering dogs, at least 71%/70% 70%/68%
43 ENVIRONMENTAL SERVICES
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998
1998 1998 1998 1998 1997 COSTS INCOME NET ESTIMATE ACTUAL (After COST NET COST NET COST Internal Recoveries) $000's $000's $000's $000's $000's
OPERATIONAL OUTPUTS
Consents and Applications 8,559 (6,383) 2,176 1,479 1,853 Environmental Effects Control 654 (20) 634 525 600 Plans and policy Statements 1,098 (13) 1,085 775 697 Information and Advice 3,348 (1,183) 2,165 2,438 1,843 Animal Control 1,556 (1,423) 133 106 (30)
COST OF SERVICE $15,215 ($9,022) $6,193 $5,323 $4,963
NOTES ($000s):
External Revenue included in Income is: Actual 1998 $9,022, Estimate 1998 $9,568 Actual 1997 $9,258. Depreciation included is: Actual 1998 $311, Estimate 1998 $241, Actual 1997 $259. Refer to Note 33.
44 HOUSING
Managing and administering a stock of rental accommodation for elderly persons, invalids and people on low incomes. Units managed in this activity include 2,174 elderly persons housing units and 387 public rental units.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target 1. Continue to provide welfare 1.1 All reported cases of urgent need responded to surveillance of elderly persons’ within Achieved 1 hour housing tenants.
2. Effectively tenant the existing 2.1 Vacancy rate for EPH and Public Rental units, EPH 3.25% housing stock. less than PRH 2.06% 3%
3. Separately fund housing 3.1 User charges as a proportion of net cost of Surplus administration and maintenance service, at least achieved 100% without recourse to general rate income.
4. Ensure the design and 4.1 Completion within budget of programme of implementation of an approved specific EPH maintenance and construction programme of housing works involving: improvements and development - remodelling bed sitter units, at least 78 40 works. - constructing a residents lounge within an existing EPH complex Jecks Place 1 by 30 June 1998
5. Carry out a satisfaction survey of 5.1 Tenants satisfied with the service and Service 84% the tenants on a bi-annual basis. accommodation provided, at least Accommodation 94% 80%
6. Enhance the quality of the life of 6.1 Tenants satisfied with social/leisure activities 73% 80% the Council tenants. provided
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998
1998 1998 1998 1998 1997 COSTS INCOME NET ESTIMATE ACTUAL (After COST NET COST NET COST Internal Recoveries) $000's $000's $000's $000's $000's
OPERATIONAL OUTPUTS
Elderly Persons Housing 5,124 (6,892) (1,768) (1,104) (838) Trust Housing 53 (84) (31) (24) (48) Owner/Occupied Housing 23 (30) (7) (6) (44) Public Rental Housing 1,389 (2,273) (884) (455) (593) General Housing 61 (158) (97) (30) (56)
COST OF SERVICE $6,650 ($9,437) ($2,787) ($1,619) ($1,579)
NOTES ($000s):
External Revenue included in Income is: Actual 1998 $9,437, Estimate 1998 $8,997, Actual 1997 $8,389. Depreciation included is: Actual 1998 $807, Estimate 1998 $881, Actual 1997 $775. Refer to Note 33.
45 LEISURE AND COMMUNITY SERVICES
Enhancing the health and well-being of the people of Christchurch and their enjoyment of life through the provision and promotion of selected sport and recreation programmes and facilities, and advice and advocacy on community issues.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target 1. Assist, encourage and advise 1.1 Increase participation in Council recreation clubs, organisations and the programmes by at least 12% 5% general public to maintain or increase overall participation 1.2 Participants satisfied with the Council's levels, and to ensure adequate recreation programmes, at least 73% 90% resources are available.
2. Encourage major sporting and 2.1 Secure major sporting events and/or recreation events to come to recreation events, minimum of 3 3 Christchurch. 2.2 Identify separate pre Sydney 2000 Olympic Interest Games competition events to be held in express ed but Christchurch/Canterbury confirmations 5 not yet received 3. Prepare a leisure strategy for 3.1 Production of a leisure strategy for Christchurch and implement the Christchurch Not completed 30 June 1998 Council's new recreation and sport policy.
4. Maintain and improve existing 4.1 Residents visiting Council stadia once or Council stadia, pools, and more during the year 35% 34% other recreation facilities. 4.2 Residents visiting Council swimming pools during the year 49% 43%
4.3 Residents satisfied with the value for money Sports Grounds 84% of rates spent on providing swimming pools, Swimming Pools sports grounds, and stadia, at least and Stadia 78% 78%
5. Distribute Hillary Commission 5.1 Residents satisfied with the value for money and other grants to sports and of rates spent on supporting voluntary groups recreation organisations. and organisations, at least 68% 65%
6. Liaise with, advise and advocate 6.1 New Youth Council meetings held & Met monthly on behalf of, assist community distributes Youth Information booklets since March Monthly organisations to help reduce Not met 23,000 by March 1998 disadvantages, improve quality 6.2 Major youth events organised by 4YP (Youth of life and increase control Entertainment Organisation) 4 4 by 30 June 1998 people have on their lives and provide support for theYouth 6.3 Run in partnership with other agencies Function passed at least 3 by Council, youth workers & youth networking and co-ordinating forums to Youth Workers' 30 June 1998 projects. for youth workers and people involved Collective in youth issues.
7. Operate each facility for which 7.1 Favourable Education Review Office reports Pioneer not reviewed 3 the Council is directly are received for all child care facilities Very favourable reports creches responsible efficiently and for other 2 and effectively. 7.2 Annual client surveys indicate satisfaction Not measured 85% with facilities to be done biannually in future
8. Provide clean, accessible and 8.1 Patrons satisfied with the overall service Not measured 95% safe toilets in Cathedral Square. provided
9. Plan and organise festivals and 9.1 Residents satisfied with value of Council 86% 80% events. spending on providing events and free entertainment, at least
10. Redevelop Centennial Pool and 10.1 Sufficient progress made on redeveloping Work is commence construction of Centennial Pool to permit opening by running to 31 December 1998 Pioneer Pool. programme
46 LEISURE AND COMMUNITY SERVICES
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998
1998 1998 1998 1998 1997 COSTS INCOME NET ESTIMATE ACTUAL (After COST NET COST NET COST Internal Recoveries) $000's $000's $000's $000's $000's
OPERATIONAL OUTPUTS
Plans and Policy Statements 121 0 121 142 124 Information and Advice 549 0 549 491 515 Community Services 2,149 (682) 1,467 2,072 1,145 Leisure Services 961 (93) 868 812 643 Stadia 1,116 (526) 590 619 343 Pools 1,102 (280) 822 797 852 Golf Courses 292 (355) (63) (16) (46) Camping Grounds 85 (67) 18 8 5 QEII Park 4,033 (1,856) 2,177 1,976 2,028 Events 1,289 (83) 1,206 1,034 1,020 SummerTimes 733 (189) 544 552 522 Events Marketing 43 0 43 63 22 Grants Administration 85 0 85 92 3 Recreation and Sports Grants 782 (437) 345 356 292 Attractions and Events Grants 600 0 600 573 527 Community Services Grants 728 0 728 747 783 Arts and Culture Grants 731 (213) 518 820 450
COST OF SERVICE $15,399 ($4,781) $10,618 $11,138 $9,228
NOTES ($000s):
External Revenue included in Income is: Actual 1998 $4,781, Estimate 1998 $4,761, Actual 1997 $4,389. Depreciation included is: Actual 1998 $824, Estimate 1998 $838, Actual 1997 $827. Refer to Note 33.
47 LIBRARY SERVICES
Developing the knowledge, literacy and information skills of the city's residents and to contribute to the city's cultural, economic and social wellbeing and cultural understanding by providing and promoting accessible, non-exclusive, high quality and cost effective library and information services. Library Services manages a book stock of 966,387 volumes and provides services to 221,803 enrolled members and other users.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target
1. Provide and promote accessible 1.1 Residents (adults and children) visiting non exclusive high quailty and cost a Council library during the year, at least 67% 60% effective library and information services.
2. Continue to provide effective 2.1 Borrowers satisfied with service provided lending and information services to (average of six factors), at least 81% 81% clients of the library system. 2.2 Information clients satisfied with service provided (average of five factors), at least 83% 85%
2.3 Average cost per lending service ransaction, not more than $1.85 $2.20
3. Integrate the Sumner Adult Library 3.1 Integration completed by 28 October 1997 31 October 1997 with the Children's Library under the management of the Libraries Unit. ort Commenced 30 June 1998 3.2 Building alterations completed by but not completed 4. Continue the development of 4.1 New communications equipment electronic resource availability at installed by 28 February 1998 28 February 1998 Central and Community Libraries.
5. Extend the services available on Sunday 5.1 Extended Sunday services available on 9 November 1997 9 November 1997 from the Central Library to enable completion of Stage II of the Central customers to borrow items and have Library reorganisation from information enquiries satisfied. Temporary co- 30 September 6. In conjunction with the Council's MIS 6.1 Co-ordinator appointed by ordinator appointed 1998 Unit, co-ordinate the Council's World 1 April 1998 Wide Web project through the appointment of a full-time Progress report to the Council by Report delayed 30 June 1998 co-ordinator, based in the Libraries Unit.
7. Integrate the extension of services to 7.1 Service delivery plan, including Questionnaire 31 May 1998 pre-school children into the Library's services to pre-schools adopted by used & results reported overall service delivery to children. Evaluation, including Customer to Community Services satisfaction. Committee. No formal written plan in place.
8 . Commence planning and building of a 8.1 Building commenced by Yet to start. Planning & 30 June 1998 new Fendalton Library to provide a design continuing 1,200 square metre facility to cater for increased demand for services, in conjunction with the Fendalton Service Centre.
9. Commence preliminary planning for 9.1 Site purchased and planning completed Council owned site the New Brighton Community Library by chosen. Building 30 June 1998 scheduled for building in 1998/99. commenced August 1998.
NOTE: No benchmarks or targets for the indicators were included in the Plan. These were to be developed as City Streets entered into the first round of measurement during the 1997/98 year.
48 LIBRARY SERVICES
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998
1998 1998 1998 1998 1997 COSTS INCOME NET ESTIMATE ACTUAL (After COST NET COST NET COST Internal Recoveries) $000's $000's $000's $000's $000's
OPERATIONAL OUTPUTS
Information Technology/WWW Project Advice 106 (53) 53 55 28 Central Library Lending Service 3,223 (436) 2,787 2,713 2,635 Central Library Information Services 3,408 (107) 3,301 3,259 2,661
Community Libraries Lending and Information Services Pre-School Outreach 57 0 57 59 0 Outreach 306 (1) 305 316 0 Bishopdale Library 561 (52) 509 540 613 Fendalton Library 916 (83) 833 871 1,075 Halswell Library 319 (24) 295 298 319 Hornby Library 509 (46) 463 468 532 Linwood Library 848 (86) 762 742 769 Mobile Libraries 608 (11) 597 621 426 New Brighton Library 541 (48) 493 508 584 Papanui Library 716 (66) 650 642 706 Redwood Library 354 (21) 333 341 415 Shirley Library 760 (40) 720 763 837 Spreydon Library 715 (64) 651 720 777 St Martins Library 99 (3) 96 98 86 Sumner Library 129 (8) 121 134 96 Neighbourhood Libraries 95 0 95 124 74
COST OF SERVICE $14,345 ($1,165) $13,180 $13,324 $12,633
NOTES ($000s):
External Revenue included in Income is: Actual 1997 $1,165, Estimate 1997 $1,159, Actual 1997 $1,052. Depreciation included is: Actual 1997 $2,046, Estimate 1997 $2,199, Actual 1996 $2,337. Refer to Note 33.
49 PARKS
Planning and managing the acquisition, maintenance, development and use of the City’s resource of public parks and reserves for the purposes of recreation, amenity and conservation. 638 parks (4,274 Ha) and nine cemeteries maintained using in-house and external contractors.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target 1. Enhance the quality of life of the 1.1 Residents visiting a city park or beach once or City’s residents and visitors by more during the year, at least 97% 95% providing parks and open spaces so as to conserve natural 1.2 Residents satisfied with the value for money of resources, promote the City's rates spent on parks and playing fields, at least 84% 83% unique identity, and service the need for places for sport and 1.3 Residents satisfied with level of provision for recreation. To ensure that various park activities (average of 10 activities), Christchurch remains the at least 66% 70% country's premier garden city and its parks and gardens remain 1.4 Residents satisfied with standard of parks internationally recognised. maintenance, at least 90% 92%
2. Implement the approved park 2.1 Complete to specification standards restricted asset improvement, development and projects, at least 215 190 park building construction programme. 2.2 Complete to specification standards all fixed asset projects 100% 100%
3. Supply high quality plants through 3.1 Supply plants in accordance with specified both production and contract standard, at least 221,536 220,000 Plants growing for the city wide planting programme.
4. Process applications for use of 4.1 Process applications for leases and licences within 90% 100% parks and ensure all licences and two months of receipt in accordance with Council leases are in place and the rental standards and legal requirements. policy applies.
5. Set assessment criteria standards 5.1 Develop an assessment criteria for decision making Preliminary to assist with the acquisition on reserve acquisitions by work 31 December 1997 of the best quality reserves for the started best cost.
6. Respond to our obligations under 6.1 Maintain a daily fire weather index during the fire 100% 100% the Forest and Rural Fires Act to season and ensure the Council's resources are suppress wildfires in the rural areas trained and ready to respond to all fires. of the city.
7. Prepare plans and reports in 7.1 Complete, at least 11 10 Planning Reports response to identified park issues. Partially 2 Management completed Plans
8. Complete attributes on urban 8.1 Complete data survey of all 44,000 street trees tree resource and load data survey in the city by 90% 30 June 1998 of street trees in the city. complete
9. Undertake a twice yearly park 9.1 Ensure a level of compliance within 10% of all Completed 30 June 1998 specification quality survey of all maintenance specifications for park assets. Level of parks and determine percentages compliance is of compliance. within 5%
10.Process all applications for plot 10.1Action interments in accordance with statutory 796 900 purchases and warrants for requirements. interment in cemeteries.
* Target per Corporate Plan
50 PARKS
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998
1998 1998 1998 1998 1997 COSTS INCOME NET ESTIMATE ACTUAL (After COST NET COST NET COST Internal Recoveries) $000's $000's $000's $000's $000's
OPERATIONAL OUTPUTS
Plans and Policy Statements 219 0 219 249 280 Information and Advice 787 (4) 783 763 701 Parks Advice - Service Centres 316 0 316 361 316 Consents and Applications 163 0 163 163 124 Rural Fire Authority 175 (175) 0 0 0 Cemeteries 777 (466) 311 292 324 Nursery Products (334) (5) (339) (12) 0 Parks Maintenance 11,895 (774) 11,121 11,787 11,874 Environmental Parks Grants 70 0 70 70 65
COST OF SERVICE $14,068 ($1,424) $12,644 $13,673 $13,684
NOTES ($000s):
External Revenue included in Income is: Actual 1998 $1,424, Estimate 1998 $1,677, Actual 1997 $1,387. Depreciation included is: Actual 1998 $255, Estimate 1998 $226, Actual 1997 $218. Refer to Note 33.
51 PUBLIC ACCOUNTABILITY
Provision for civic leadership and the democratic process of decision-making by elected members through remuneration and support arrangements for the Mayor, 24 Councillors and 33 elected Community Board members.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target 1.To achieve the purposes of 1.1 Proportion of residents satisfied with the local government, including value for money of rates spent on significant recognising identity, values activities as disclosed in the Annual Residents’ and rights of the Christchurch Survey, to be not less than 71% 85% community, providing for choice in the provision of public facilities and services, and encouraging effective public participation in local government.
2.Implement programmed 2.1 Community/residents group meetings with community consultation to Board or its representatives as per proposed Continuous enhance the ability of programme Achieved Consultation Community Boards to represent their communities.
3.Ensure the negotiation of 3.1 Contents of all Statements of Corporate Statements of Corporate Intent or similar documents in compliance Intent for the Local Authority with Section 594T of the Local Government All Statements of Trading Enterprises and Act, and all such statements finalised within Corporate Intent comparable documents for three months of commencement of the finalised within similar organisations in which relevant corporate body’s financial year 100% 3 months the Council has a significant interest.
4.Implement an agreed 4.1 All meetings of elected members held in All meetings All meetings programme of elected member complete compliance with provisions of the 100% 100% meetings. Local Government Official Information and of the of the Meetings Act without the need for subsequent time time procedural correction
5.Prepare appropriate public 5.1 Adopt Annual Plan for 1997/98 30 July 1997 30 July 1997 accountability documents. and Annual Report for 1996/97 by 26 November 1997 30 November 1997
6.Effectively allocate 6.1 Funds allocated in accordance with a Completed by Completed by Community Board statement of Community Board priorities 30 June 1998 30 June 1998 discretionary funds. agreed following public consultation
52 PUBLIC ACCOUNTABILITY
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998
1998 1998 1998 1998 1997 COSTS INCOME NET ESTIMATE ACTUAL (After COST NET COST NET COST Internal Recoveries) $000's $000's $000's $000's $000's
OPERATIONAL OUTPUTS
Elected Member Representation 2,635 0 2,635 2,177 2,081 Elected Member Decision Making 3,762 0 3,762 4,083 3,223 Liaison and Discretionary Expenditure 221 0 221 453 195
COST OF SERVICE $6,618 0 $6,618 $6,713 $5,499
NOTES ($000s):
External Revenue included in Income is: Actual 1998 Nil, Estimate 1998 Nil, Actual 1997 Nil. Depreciation included is: Actual 1998 $21, Estimate 1998 $9, Actual 1997 $25. Refer to Note 33.
53 REFUSE
Providing regular refuse collection services and operating transfer, recycling and disposal facilities. Public and commercial refuse collection through three transfer stations open seven days per week, with final disposal at landfill site. STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98. Performance Indicators Actual Target 1. To protect the public health of the 1.1 Residents satisfied with value for money of Christchurch community and maintain rates spent on refuse collection and disposal, the quality of the City’s natural at least 79% 90% environment by promoting waste minimisation and ensuring effective provision of collection and disposal of residual waste. 2. Properly maintain and reliably operate 2.1 Number of unplanned shutdowns and transfer facilities in accordance with proven incidences of non-compliance with operational manuals and management consents and bylaws during the year, no plans. more than Nil Nil
3.1 To achieve the outputs in the 1997/ 98 3.1 Increase green waste annual intake to 26,523 27,500 Compost Facility Business Plan which tonnes includes promotion of the diversion of green waste to the Compost Plant.
3.2 To advance the sustainable use of 3.2 Delivery of sorted newspaper, glass, plastic recyclable materials by the collection and and metal cans to the RMF with maximum delivery of sorted kerbside recyclable complaints about contamination, not more materials to the Recovered Materials than 212 Foundation (RMF).
3.3 To encourage commercial organisations to 3.3 Progress on joint Christchurch City Council, undertake waste reduction programmes ECNZ waste minimisation project. Diverse including cleaner production, waste industries to be selected, assessed and training auditing and in-house recycling systems. undertaken for cleaner production methods, at least 12 12
4. Provide effective residual refuse disposal in 4.1 Number of proven incidents in landfill accordance with consents and bylaws. operations where conditions of consents and dispensations have been contravened, no more than Nil Nil 5. To continue working with the Canterbury 5.1 Appointment of a joint venture partner for a Memorandum 30 June 1998 Waste Joint Standing Committee to Regional Landfill & progress towards of understanding identify a joint venture partner for a new identification of a Regional Landfill site. Regional Landfill site as a replacement for approved Burwood and other landfills. STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998
1998 1998 1998 1998 1997 COSTS INCOME NET ESTIMATE ACTUAL (After COST NET COST NET COST Internal Recoveries) $000's $000's $000's $000's $000's
OPERATIONAL OUTPUTS
Plans and Policy Statements 247 0 247 227 211 Refuse Collection 4,720 (589) 4,131 4,092 4,319 Transfer Operations 5,015 (7,023) (2,008) (2,047) (1,079) Waste Minimisation 3,379 (833) 2,546 2,657 1,004 Refuse Disposal (314) (751) (1,065) (1,347) (1,439)
COST OF SERVICE $13,047 ($9,196) $3,851 $3,582 $3,016
NOTES ($000s): External Revenue included in Income is: Actual 1998 $9,196, Estimate 1998 $9,464, Actual 1997 $7,783. Depreciation included is: Actual 1998 $134, Estimate 1998 $138, Actual 1997 $148. Refer to Note 33.
54 SERVICE DELIVERY AND ADVICE
Administration of a network of service delivery at strategic locations in the city, additional to the Civic Offices, for the provision of Council and related community services to the public.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE Objectives for 1997/98 Performance Indicators Actual Target 1. Increase public awareness of the 1.1 Users satisfied with suitability of community availability and the use of local halls and centres for chosen activities, at least 89% 89% services and facilities through effective provision and promotion.
2. Demonstrate and promote 2.1 Service centre customers satisfied with service customer satisfaction with the received (average of five factors), at least Not measured 80% quality of public contacts in the process of delivering services. 2.2 Customers satisfied with service when last telephoned the Council during the year (average of five factors), at least 77% 78%
3. Encourage participation and a 3.1 Report to elected members on the outcomes of sense of belonging in the implementation of the community Partially 30 June 1998 communities. development and social wellbeing, and met recreation and sport policies. %% 3.2 Residents aware of local residents’ groups, at least 28% 24%
55 SERVICE DELIVERY AND ADVICE
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998
1998 1998 1998 1998 1997 COSTS INCOME NET ESTIMATE ACTUAL (After COST NET COST NET COST Internal Recoveries) $000's $000's $000's $000's $000's
OPERATIONAL OUTPUTS
Community Services - Service Centres
Sockburn Service Centre 609 (58) 551 537 511 Linwood Service Centre 391 (10) 381 433 303 Fendalton Service Centre 426 (24) 402 478 368 Papanui Service Centre 440 (37) 403 370 347 Beckenham Service Centre 336 (4) 332 364 353 Shirley Service Centre 575 (44) 531 662 543
Counter Services - Corporate 328 (34) 294 305 307
Counter Services - Service Centres
Sockburn Service Centre 268 (225) 43 26 31 Riccarton Sub Centre 142 (28) 114 109 100 Linwood Service Centre 29 (22) 7 5 21 Fendalton Service Centre 109 (61) 48 37 13 Papanui Service Centre 126 (42) 84 122 83 Beckenham Service Centre 105 (46) 59 67 57 Shirley Service Centre 154 (41) 113 56 57
Corporate Communications 356 (4) 352 299 289
$4,394 ($680) $3,714 $3,870 $3,383
NOTES ($000's):
External Revenue included in Income is: Actual 1998 $680, Estimate 1998 $647, Actual 1997 $683. Depreciation included is: Actual 1998 $128, Estimate 1998 $144, Actual 1997 $114. Refer to Note 33.
56 SEWERAGE
Provide liquid waste transport, treatment and refuse services in a manner that will enhance the health, safety and convenience of the Christchurch community, and meet the needs of a growing city in conformity with the intentions of district and regional plans. The sewage collection system serves all of the Christchurch City urban area and comprises 1,350 km of sewer mains, 78 pumping stations, approximately 20,000 manholes, 1,600 flush tanks, and 100,000 sewer laterals. Treatment works are at Bromley, Belfast and Templeton.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target 1. Preserve the value of the 1.1 Full implementation of the 1997/98 Capital work of Complete capital public reticulation system by sewer capital works programme, and the $6,749,488 works of adopting an asset management Asset Management Plan adopted by the completed. $7,054,541 strategy. Council AMP adopted AMP adopted by 23 September 1998 30 June 1998 2. To ensure adequate system 2.1 Complete major catchment flow capacity to cater for present and monitoring over the whole reticulation future urban growth by system and identify sub-catchment flow continuing the flow monitoring monitoring requirements, plus Not Completed 30 June 1998 programme and eliminating inspection and remedial works 15,621 properties 15,000 Properties stormwater entry. on a further inspected
3. No overflows of sewage from 3.1 Discharges of sewage to waterways due reticulation due to failure of to failure of Council pumping Council pumping equipment. equipment. NIL NIL
4. Provide response and control to 4.1 Proportion of trade waste pollution pollution and hazardous incidents at which a pollution control substance spillage incidents. response was available within 15 minutes of notification, at least 100% 98%
5.To minimise energy costs for all 5.1 Maximium use of waste gas flares for the operating plant, by maximising year, no more than 72.5 Hours 80 Hours biogas used for energy production.
6. To comply with water right 6.1 Reduction in suspended solids and effluent discharge standards as biological oxygen demand across required through achievement Christchurch Treatment Works primary of target treatment levels. and secondary processes an average of 66% & 65% 70% & 65%
6.2 Reduction in faecal coliforms across the whole plant of 99.7% 99.9%
7. To minimise sewage treatment 7.1 Annual cost per year per person, costs. maximum of $12.15 $11.5
8. Progress conversion of liquid 8.1 Conversion of liquid waste plan records waste reticulation plan records into electronic form by 30 June 1998, at into digitised computer based least 23% 35% format.
57 SEWERAGE
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998
1998 1998 1998 1998 1997 COSTS INCOME NET ESTIMATE ACTUAL (After COST NET COST NET COST Internal Recoveries) $000's $000's $000's $000's $000's
OPERATIONAL OUTPUTS
Plans and Policy Statements 177 0 177 139 133 Information and Advice 128 (26) 102 216 152 Consents and Applications 303 0 303 332 186 Liquid Waste Collection 12,175 (312) 11,863 12,018 11,171 Liquid Waste Treatment and Disposal 5,493 (1,740) 3,753 3,657 3,550
COST OF SERVICE $18,276 ($2,078) $16,198 $16,362 $15,192
NOTES ($000's):
External Revenue included in Income is: Actual 1998 $2,078, Estimate 1998 $2,132, Actual 1997 $2,075. Depreciation included is: Actual 1998 $8,416, Estimate 1998 $8,135, Actual 1997 $8,284. Refer to Note 33.
58 WATER SERVICES
Planning, operating and maintaining the City’s water supply and distribution system, supplying high quality water to meet residential and business needs and for firefighting purposes. The operation and/or maintenance of the stormwater collection system, waterway environments and flood control facilities together with associated water quality, biota and physical monitoring. Systems include 287 kilometres of waterways and 572 kilometres of stormwater drains.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target 1. To provide a sufficient, reliable 1.1 Residents satisfied with the value for money and cost effective supply of high of rates spent on water supply services, at quality water to the least 90% 90% Christchurch community, while sustainably managing the city’s water resources, and protecting people and property from fire and flood.
2. Effectively respond to requests 2.1 Maintain first contact action on 99% of Not measured Within 3 working days for land drainage information. general land drainage information, related Specialist information correspondence and enquiries within 10 working days
3. Effectively respond to 3.1 Process land and project information 98% of LIMs, applications for service. memoranda applications within 4 and 2 96% of PIMs 90% days respectively
3.2 Ensure applications for new connections are Within 3 working days processed and forwarded for connection 100% of receipt of application
4. Operate and maintain the water 4.1 Unplanned headworks shutdowns resulting supply system. in loss of supply to customers for longer than four hours Nil Nil
4.2 Unplanned shutdown incidents of less than 2 less than 10 four hours duration during the year *Category ‘U’ 95% 4.3 Repair of reported A-C category leaks as *Category ‘1’ 91% 100% per the scheduled time frames *Category ‘3’ 97%
4.4 Quality of water tested meeting the public health requirements of the New Zealand drinking water standards, no less than 99% 99% 5. Operate and maintain 5.1 Residents aware of rubbish polluting stormwater collection and flood Christchurch waterways, less than 28% 28% control systems, and manage the City’s waterways.
* Categories were changed to the following:
‘U’ - urgent, repair the same day ‘1’ - repair within one day (ie 24 hours) ‘3’ - repair within 3 days
59 WATER SERVICES
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998
1998 1998 1998 1998 1997 COSTS INCOME NET ESTIMATE ACTUAL (Including COST NET COST NET COST Internal Recoveries) $000's $000's $000's $000's $000's
OPERATIONAL OUTPUTS
Plans and Policy Statements 555 0 555 562 605 Information and Advice 1,443 (99) 1,344 1,272 981 Consents and Applications 607 (643) (36) (341) (172) Supply of Water 11,468 (2,515) 8,953 9,469 7,615 Land Drainage Operations and Maintenance 9,760 (260) 9,500 9,903 9,663
COST OF SERVICE $23,833 ($3,517) $20,316 $20,865 $18,692
NOTES:
External Revenue included in Income is: Actual 1998 $3,517, Estimate 1998 $3,398, Actual 1997 $3,249. Depreciation included is: Actual 1998 $9,071, Estimate 1998 $9,004, Actual 1997 $8,891. Refer to Note 33.
60 INTERNAL SERVICE PROVIDERS
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998 CITY DESIGN
COSTS INCOME NET NET NET
S1998 1998 1998 1998 1997 Consultancy Services ACTUAL ACTUAL ACTUAL ESTIMATE ACTUAL $000's $000's $000's $000's $000's Structural / Mechanical 468 (502) (34) 0 (48) Roading 1,646 (1,594) 52 (27) (233) Drainage 1,128 (1,230) (102) 0 (52) Legal Surveying 823 (920) (97) 0 (8) Architectural 301 (323) (22) 0 69 Landscape 526 (538) (12) 0 (11) Quantity Surveying 55 (46) 9 0 18 Plan Records and Printing 175 (175) 0 0 0 Computerised Mapping 218 (212) 6 0 49 Project Management 322 (316) 6 0 (18) Mechanical/Electrical 275 (356) (81) 0 0
ALLOCATED TO SERVICE DELIVERY ACTIVITIES $5,937 ($6,212) ($275) (27) ($234)
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998 PLANT AND BUILDING SERVICES
COSTS INCOME NET NET NET
Operational Outputs 1998 1998 1998 1998 1997 ACTUAL ACTUAL ACTUAL ESTIMATE ACTUAL $000's $000's $000's $000's $000's
Mechanical Services 4,083 (4,081) 2 0 82 Plant Hire Services 10,462 (11,935) (1,473) (1,395) (1,118) Building Services 2,673 (2,552) 121 0 57
ALLOCATED TO SERVICE DELIVERY ACTIVITIES $17,218 ($18,568) ($1,350) ($1,395) ($979)
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998 WORKS OPERATIONS
COSTS INCOME NET NET NET
Operational Outputs 1998 1998 1998 1998 1997 ACTUAL ACTUAL ACTUAL ESTIMATE ACTUAL $000's $000's $000's $000's $000's Contracting Services Council Units 31,949 (32,505) (556) 0 (1,200) CCC Lates 2,314 (2,137) 177 0 361 Public and Others 3,504 (3,536) (32) (14) (93)
ALLOCATED TO SERVICE DELIVERY ACTIVITIES $36,935 ($38,178) ($411) ($14) ($932)
61 CANROAD CONSTRUCTION LIMITED
Canroad Construction Limited is a local authority trading enterprise, 100% owned by the Christchurch City Council. It supplies bitumen products, laboratory services, roading maintenance services and roading construction services on a commercial basis. The Council retains control over the activities of the company through approval of the company’s annual Statement of Corporate Intent.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target 1. To yield projected return on 1.1 Minimum after tax return on shareholders investment. funds of 79% 10%
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 1998
ACTUAL ESTIMATE ACTUAL 1998 1998 1997 $000's $000's $000's Revenue 5,141 5,164 7,031
Operating, Financing and Depreciation Costs 4,924 5,112 6,819
Total Expenditure 4,924 5,112 6,819
NET PROFIT BEFORE TAXATION $217 $52 $212
Tax Expense/(Benefit) (14) Note (1) 70
NET PROFIT AFTER TAXATION $231 Note (1) $142
(1) No target was set
62 CANTERBURY DEVELOPMENT CORPORATION
Canterbury Development Corporation acts as the economic development area of the Christchurch City Council, providing economic development and employment services.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target 1. Play a lead role in co- 1.1 Satisfaction, formally expressed by other key ordinating, integrating and agencies, with CDC services used and their Not formally 100% facilitating the activities of all interaction with CDC measured those agencies and community groups influencing economic development, job creation and training in Canterbury.
2. Manage Christchurch City 2.1 All training, project employment and work Number of Participants: Council’s involvement in opportunities programmes in complete 78 Subsidised Employment 65* Government and Community accordance with Government and Council 120# Computer Training 160* employment schemes. requirements 2,708 Youth Employment 1,300*
3. Maintain through Business 3.1 Refer businesses to relevant sources of Grow Canterbury contact with information and assistance, at least 2,463 2,500 local business and provide advice on assistance available in order to increase employment and facilitate business growth.
4. Through Business in the 4.1 Maintain a comprehensive directory of Community stimulate business mentors available to assist, with at least 89 50 mentors survival, growth and available employment generation in Canterbury by mobilising the resources, business skills, experience and information of successful businesses for the benefit of struggling and growing enterprises.
5. Provide through Company 5.1 Visit by 30 June 1998, businesses in Rebuilders ‘last resort’ assistance Canterbury, at least 259 100 mainly to small companies based on the expertise of volunteers.
6. Through BUSINESSLINK 6.1 Maintain current information of businesses on Canterbury provide the highest BUSINESSLINK, at least 4,750 5,000 quality information to Canterbury businesses.
* Target per Corporate Plan # The number of participants was reduced as a result of funding being withdrawn.
63 CANTERBURY DEVELOPMENT CORPORATION
STATEMENT OF COST OF SERVICE FOR THE YEAR ENDED 30 JUNE 1998
ACTUAL ESTIMATE ACTUAL 1998 1998 1997 $000's $000's $000's Income Operational Grant CCC 653 553 540 Business Grow Grant CCC 0 100 65 Business Grow Income 157 127 193 Other Income 221 270 227
1,031 1,050 1,025 Less Expenses 1,198 1,204 1,192
SURPLUS (DEFICIT) ($167) ($154) ($167)
The deficit is to be funded from Reserves.
64 CANTERBURY MUSEUM TRUST BOARD
The Canterbury Museum Trust Board is established under the Canterbury Museum Trust Board Act 1993. Five local authorities are levied contributions to fund the ongoing activities of the Museum Trust Board. The Board composition includes four appointees from the Christchurch City Council. The Christchurch City provides 91% of the levies received by the Museum.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target 1. To progress towards a total 1.1 Prepare overall concept plan for a 5 year new visitor experience through project to revitalise the Museum visitor the public galleries. experience with scoping report completed by 30 June 1998 30 June 1998
1.2 Design and implement a Children's Discovery Centre to be opened by 30 September 1997 3 0 September 1997
1.3 Complete and open the Mountfort Gallery of European Decorative Arts and Costume by 3 0 September 1997 30 September 1997
2. Improved customer focus and 2.1 Increase visitor numbers by 12.5% to 450,218 450,000 service. 2.2 Maintain visitor satisfaction rating with displays, exhibits and facilities in excess of 82% 70%
2.3 Design and implement an enhanced Museum foyer and reception area by 30 June 1998 30 June 1998 Discrete 3. Proper care of heritage 3.1 Prepare a comprehensive Collections collection plans in collections. Management Plan by preparation 30 June 1998
3.2 Undertake Stage I of a programme to relocate Pictorial collection and properly store the Museum's 1.9 million relocated. Plans for collection items by all Documentary History 30 June 1998 collections approved for mplementation 1998-99
3.3 Develop a new store for the Museum's wet Plans are in place, new collections which meets statutory dangerous store will be commissioned goods requirements by in October 1998 30 June 1998
4. Adequate maintenance of 4.1 Undertake Stage IV of fire safety upgrade by 31 August 1997 30 June 1998 buildings and plant.
5. Corporate development to 5.1 Undertake Compers job sizing exercise in Delayed, waiting enhance staff's abilities to meet conjunction with the Christchurch City completion of CCC the above objectives. Council by job sizing framework 30 June 1998
5.2 Appoint Promotions Manager to raise the Marketing Manager profile of the Museum and attract $250,000 appointed May 1998 in sponsorship by Sponsorship proposals 30 June 1998 under development STATEMENT OF COST OF SERVICE FOR THE YEAR ENDED 30 JUNE 1998
ACTUAL ESTIMATE ACTUAL 1998 1998 1997 $000's $000's $000's Costs 2,935 4,692 3,374 Less Levies (2,458) (2,464) (1,943) Less Income (1,121) (1,029) (1,711)
Net Surplus/(Cost) $644 ($1,199) $280
ANALYSIS OF COST OF SERVICE $000's $000's $000's
Depreciation 271 258 Loan Servicing 127 127 Other Operating 2,537 2,989
TOTAL COST OF SERVICE $2,935 $4,692 $3,374
65 CANTERBURY TECHNOLOGY PARK
1 A joint venture undertaken by three equal (33 /3%) partners, Christchurch City Council, Trustbank Limited and Aoraki Corporation. The joint venture is developing land near Christchurch International Airport to facilitate the establishment and development of technology-based industries. The Joint Venture’s financial performance significantly depends on the rate and nature of land sales.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target
1. Continue to progress the sale of remaining 1.1 Further land sales totalling at land. least 0.3 hectares 1.0hectares
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 1998
ACTUAL ACTUAL 1998 1997 INCOME $000's $000's Land Sales 346 969 Interest Received 33 27
379 996
EXPENDITURE Opening Value of Land Held 970 1,329 Land Development and Sale Costs 181 151
1,151 1,480 Less Value of Land Held 1,045 970
Cost of Land Sold 106 510 Administration and Operating 25 26 Audit Fee 2 2 Management Fees 35 29 Promotion Expenses 1 1 Repairs and Maintenance Ground 16 13 Legal Costs 6 4
191 585
NET SURPLUS/(DEFICIT) TRANSFERRED TO PARTNERS’ CAPITAL ACCOUNTS $188 $411
1 NOTE: Christchurch City Council has accounted for 33 /3% of this profit or loss using the proportionate consolidation method.
66 CHRISTCHURCH CITY FACILITIES LIMITED
Christchurch City Facilities Limited was incorporated as a local authority trading enterprise on 27 June 1997. The Company owns the Convention Centre land and building, and has a lease of the Entertainment Centre land. The Company has acquired a lease of the Town Hall and will own the Entertainment Centre buildings and improvements.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE The key performance targets of Christchurch City Facilities Limited were to achieve or better the financial results as forecast in the Statement of Corporate Intent 1998.
Actual Forecast $ $ Net profit before tax (3,553,143) (3,355,475) Net profit after tax (3,553,143) (3,355,475) Debt/equity ratio 0% 0% Debt to total assets 0% 0%
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 1998
ACTUAL ACTUAL 1998 1997 $000's $000's INCOME Operating 6,043 0
EXPENDITURE Operating and Other 9,596 43
NET SURPLUS/(DEFICIT) BEFORE TAX (3,553) (43)
Provision for Taxation 0 0
TAX PAID SURPLUS/(DEFICIT) FOR THE YEAR ($3,553) ($43)
67 CHRISTCHURCH CITY HOLDINGS LIMITED
Christchurch City Holdings Limited is a wholly owned subsidiary of Christchurch City Council formed for the purpose of holding investments in subsidiary organisations.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE Objectives for 1997/98 Performance Indicators Actual Target 1. Achieve projected financial 1.1 Pay dividends totalling performance. $30.7M $15.2M
2. Make provision for ongoing 2.1 Reduce existing debt by debt repayment. $0.5M $4.0M
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 1998
ACTUAL ACTUAL 1998 1997 $000's $000’s
Interest Earned 6,988 7,338 Dividends 48,220 22,607 Other Income 1,420 699
56,628 30,644
EXPENSES 10,989 12,310 Interest Paid 638 468 Other TOTAL EXPENSES 11,627 12,778
NET SURPLUS $45,001 $17,866
68 CHRISTCHURCH INTERNATIONAL AIRPORT LIMITED
A private company jointly owned by Christchurch City Holdings Limited (75%) and the New Zealand Government (25%). The primary activity of the company is to own and operate Christchurch International Airport efficiently and on sound business principles for the benefit of both commercial and non-commercial aviation users and in accordance with the terms of the aerodrome licence which defines standards and conditions laid down by the Ministry of Transport.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target 1. Achieve through service 1.1 Aircraft departures, at least 40,271 36,000 provision and promotion Passenger movements, at least 3.67 million 3.80 million targeted aircraft, passenger Tonnes of international airfreight and international airfreight movements, at least 35,575 30,000 movements.
2. Maintain acceptable safety 2.1 Compliance with the standards and standards. conditions laid down in the MOT aerodrome 100% 100% licence compliance compliance
3. Achieve projected dividend 3.1 (Subject to Directors recommendation) payments. dividend payments of 58% of after tax profit 60% 58% amounting to a payment of $6.0M (CCC and and share equals $4.5M) $6.566M $4.5M
CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 1998
ACTUAL ACTUAL 1998 1997 $000’s $000’s REVENUE Operating Revenue 47,840 44,941 Interest Income 637 573
TOTAL REVENUE 48,477 $45,514
EXPENSES Audit Fees 30 30 Depreciation 7,532 6,605 Depreciation Review Adjustment - 8,746 Provision for Resealing Surfaces 100 (80) Directors’ Fees 122 104 Employee Remuneration and Benefits 7,783 8,068 Financing and Interest Costs 4,883 3,145 Other Operating Costs 11,869 9,891
TOTAL EXPENSES 32,319 36,509
NET SURPLUS BEFORE TAX 16,158 9,005 Taxation 5,233 3,946
NET SURPLUS AFTER TAX $10,925 $5,059
69 CHRISTCHURCH TRANSPORT LIMITED
A local authority trading enterprise, 100% owned by Christchurch City Holdings Limited. It provides public passenger transport, freighting and ancillary services to domestic and commercial users, including the tourist market.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target
1. Achieve targeted return on 1.1 Pre-tax return on investment of 18% 11% investment.
2. Achieve projected net after 2.1 Net after tax profit of $1,696,162 $862,000 tax profit.
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 1998
ACTUAL ACTUAL 1998 1997 $000's $000's
REVENUE FROM OPERATIONS 15,985 12,428
NET SURPLUS BEFORE TAX 2,357 1,363 After charging: Audit Fees 20 20 Depreciation 663 685 Directors Fees 78 77 Loss/(Gain) on Sale of Fixed Assets (737) (113) Property Leases 276 Subvention Payments 299 168
Taxation 661 340
NET SURPLUS AFTER TAX $1,696 $1,023
70 LYTTELTON PORT COMPANY LIMITED
A company established under the Port Companies Act 1988 operating the Port of Lyttelton. Through Christchurch City Holdings Limited the Christchurch City Council has 65% control. The Company provides services for receiving and despatching to and from the Port a wide range of products, facilities for the berthage, repair and servicing of marine vessels and owns land and facilities necessary to maintain its commercial assets.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target
1. Achieve projected port 1.1 Containers (in TEUs), at least 153,800 103,000 throughput. Fuel, at least 970,558 835,000 tonnes Coal, at least 1,028,920 1,500,000 tonnes Other Cargoes, at least 1,212,793 1,392,000 tonnes
2. Achieve projected financial 2.1 Income (before interest and tax) to total performance. assets, at least 27% 23%
2.2 Income (after tax) to average Equity (before extraordinaries), at least 31% 22%
2.3 Equity, at least 44.4% 66%
2.4 Dividend payments, at least 155% 50% of tax paid profit
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 1998
ACTUAL ACTUAL 1998 1997 $000’s $000’s
Revenue 53,000 52,249
Net Surplus Before Tax 18,933 18,330 Less Taxation (6,086) (6,040)
NET SURPLUS AFTER TAX $12,847 $12,290
71 RICCARTON BUSH TRUST
Riccarton Bush Trust manages a 6.373 hectare native bush remnant gifted to the people of Canterbury in 1914. The Trust manages Riccarton House and its 5.41 hectare of grounds including Deans Cottage, the first house build on the Canterbury Plains. Incorporated under a 1914 Act of Parliament, the Riccarton Bush Trust has powers to levy the Christchurch City Council for funding to maintain and operate the Riccarton Bush, Riccarton House and its grounds. The Christchurch City Council appoints six of the nine members on the Trust Board.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target
1. To protect, enhance and make 1.1 Conserve and enhance the property in complete Ongoing Ongoing accessible the lands described as accordance with the Act and the Management ‘Riccarton Bush’ within the Plan Act.
2. Remove exotic plants and 2.1 Staged programme in place for plant removal Stage 1 30 June 1998 invasive Hoheria Sexstlosa from and replacement with native species involving completed the Bush and re-establish/ removal of 80 mature seeding trees and August 1998 replant native species. replacement by 400 young native species
3. Provide information brochures 3.1 Information brochures and interpretation kit 30 April 1998 30 April 1998 for visitors and a resource kit be completed by for all Canterbury schools.
4. Re-route existing cycleway. 4.1 To be finalised by Resource consents 30 July 1997 being actioned
5. Begin Stage 1 landscape design 5.1 Work underway and continuing by 31 March 1998 31 August 1997 work in house grounds.
6. Period furnishing of selected 6.1 Rooms furnished by 30 June 1998 30 June 1998 rooms already restored and decorated under Stages 1and 2.
7. Finalise concept & design plans 7.1 Funding application processed by 30 September 30 September for multi-media interactive 1997 1997 exhibition gallery and public access archive computerised data base.
8. Prepare concept and design 8.1 Plans finalised by Completion 30 June 1998 plans for the re-creation of expected ground floor domestic wing. 31 December 1998
9. Create Christchurch & 9.1 Begin in collection process by 31 July 1998 31 July 1997 Canterbury heritage photography gallery in attic 9.2 Install a minimum display by 30 June 1998 30 June 1998 along with period toys and goods.
STATEMENT OF COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 1998
ACTUAL ESTIMATE ACTUAL 1998 1998 1997 $000's $000's $000's
Costs 365 171 232 Depreciation 12 2 12
377 173 244 Less Income (46) (38) (41)
Deficit before Levy & Grants 331 135 203 Less Levy and Grants (285) (285) (285)
(DEFICIT)/SURPLUS ON OPERATIONS ($46) $150 $82
72 SELWYN PLANTATION BOARD LIMITED
A company engaged in forestry related activities, jointly owned by Selwyn District Council (61%) and the Christchurch City Council (39%). Land area is 13,252 HA of which 9,858 HA is stocked.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators* Actual Target 1. Continue the scheduled1.1 Plant hectares by 31 March 1998, at least 151 230 planting programme.
2. Produce programmed 2.1 Tonnes of wood produced, at least 76,976 105,000 wood volume.
3. Achieve projected 3.1 IRR on net tangible assets* 4.3% 6% internal rate of return.
* This performance target recognises the long term investment nature of plantation forestry and the fact that the Board’s stands will not achieve a normal distribution until year 2000.
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 1998
ACTUAL ESTIMATE ACTUAL 1998 1998 1997 $000's $000's $000's INCOME Operating 4,931 6,809 5,916
EXPENDITURE Operating and Other 4,055 4,974 4,547
NET SURPLUS FOR THE YEAR BEFORE TAX 876 1,835 1,369
Provision for Tax (293) Note (1) (454)
TAX PAID SURPLUS FOR THE YEAR $583 Note (1) $915
Note (1) No target was set.
73 SOUTHPOWER LIMITED
An energy company in which the Christchurch City Council has an 87.6% shareholding through Christchurch City Holdings Limited. Southpower’s core business is the purchase and supply of electricity. It is managed on a commercial basis, meeting and developing market led demand for electricity, and undertaking investments which yield a commercial rate of return and increase theSTATEMENT commercial OF value OBJECTIVES of Southpower. AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target
1. Complete the budgeted 1.1 Programmed value of parent company capital programme of capital works. expenditure completed within budget by 31 March 1998 $18.6 million $20.1 million
2. Achieve projected overall 2.1 Net after tax profit to average owners equity financial performance. (based on revalued ordinary owners equity of $499.2 million) for year ending 31 March 1998, at least 6.1% 3.9%
2.2 Dividend payments of $14.3 million for year ending 31 March 1998 (Christchurch City Holdings Ltd 87.6% share is $12.5 million) $16.0 million $14.3 million
CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 1998
GROUP GROUP ACTUAL ACTUAL 1998 1997 $000's $000’s
OPERATING REVENUES $507,208 $467,274
Operating Surplus Before Taxation 61,412 44,738
LessTaxation Expense & Subvention Payment (19,689) (13,441)
OPERATING SURPLUS AFTER TAXATION 41,723 31,297 Plus Share of Retained Surplus of Subsidary Companies & Goodwill Writeoff (10,588) (5,304) Less Associates Losses (895) (813)
NET SURPLUS - PARENT COMPANY SHAREHOLDERS $30,240 $25,180
74 STREETWORKS MANAGEMENT (CHRISTCHURCH) LIMITED
Streetworks Management (Christchurch) Limited is a non-trading local authority trading enterprise, 100% owned by the Christchurch City Council. The Company was formed to meet the requirements of Transit New Zealand regarding tendering for subsidised roading work. The Transit New Zealand Amendment Act 1995 amended these requirements and this role is now performed by Canroad Construction Limited, another local authority trading enterprise that is 100% owned by the Christchurch City Council. The Council retains control over the activities of the company through approval of the Company’s Annual Statement of Corporate Intent.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target
NB: No formal financial targets were published as it was planned that the company would cease to operate before the commencement of the year.
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 1998
ACTUAL ACTUAL 1998 1997 $000's $000's
Income 4 165 Contract Expenditure 4 165
GROSS SURPLUS 0 0 Expenses (20) (182) Other income 0 166
NET (DEFICIT)/SURPLUS BEFORE TAXATION (20) (16) TAXATION 00
NET SURPLUS AFTER TAXATION ($20) ($16)
75 TRAVIS FINANCE LIMITED AND SUBSIDIARIES
Travis Finance Limited is a local authority trading enterprise, 100% owned by the Christchurch City Council. The Company was incorporated in July 1996 as a financing vehicle for the purchase of two pieces of land. One is to become the Travis Heritage Park, and the other is adjacent to Bottle Lake Forest Plantation.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target
1. To achieve projected financial 1.1 Limit the net loss to no more than 337,257 $622,250 loss performance.
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 1998
ACTUAL ESTIMATE ACTUAL 1998 1998 1997 $000's $000's $000's INCOME Operating 740 8
EXPENDITURE Operating and Other 1,077 1,056
NET SURPLUS/(DEFICIT) FOR THE YEAR BEFORE TAX (337) (622) (1,048)
Provision for Tax 0 0 0
TAX PAID SURPLUS/(DEFICIT) FOR THE YEAR ($337) ($622) ($1,048)
76 WINDSOR CENTRAL LIMITED
Windsor Central Limited was established as a local authority trading enterprise when the Council purchased all the shares in the Company in July 1996. The Company owns a site bounded by Gloucester, Worcester and Montreal Streets that is intended to be used as a future Art Gallery site. The land is currently leased to the Council as a car park.
STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE
Objectives for 1997/98 Performance Indicators Actual Target
1. To achieve projected financial 1.1 Achievement of projected financial NPBT performance. performance for the year $84,881 loss $31,500
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 1998
ACTUAL ACTUAL 1998 1997 $000's $000's INCOME Operating 35 35
EXPENDITURE Operating and Other 120 694
NET SURPLUS/(DEFICIT) FOR THE YEAR BEFORE TAX (85) (659)
Provision for Taxation 0 0
TAX PAID SURPLUS/(DEFICIT) FOR THE YEAR ($85) ($659)
77 CHRISTCHURCH CITY COUNCIL EQUAL EMPLOYMENT OPPORTUNITY POLICY
GIVING VALUE - BEING VALUED
(REFERENCE TO THE LOCAL GOVERNMENT AMENDMENT ACT NO. 2 1989 SECTION 119H)
MANAGEMENT PLAN FOR EQUAL EMPLOYMENT OPPORTUNITIES 1997/98
The EEO Consultative Committee shall:
Pursue results as identified in its Team Value Statement.
Specific Actions
1. EEO Consultative Committee Role, Structure, Membership, Term
1.1 Monitor the Committee’s role, structure, membership and term on an annual basis.
2. Recruitment and Selection
2.1 Review Recruitment and Selection training workshops to ensure appropriate EEO component is included.
3. Training and Development
3.1 Continue to monitor training and development practices and support EEO representation on the Development Training Task Force Committee.
3.2 EEO review of Performance Development System and practices by:
• liaising with Performance Development Co-ordinator • Seeking feedback from staff in target groups • addressing issues arising
3.3 Continue to conduct EEO Workshops on EEO principles and the Christchurch City Council EEO Policy for all staff.
4. Equal Employment Opportunities Review of the Organisation
4.1 Report annually on the employment profile of the Council.
4.2 Invite staff from target groups to raise EEO issues and/or strategies related to their target group in focus groups or individually.
4.3 Follow up with issues or recommendations from focus groups or individuals.
4.4 Review results of EEO related questions in organisation climate survey.
4.5 Follow up with recommendation from results.
5. Communication and Promotion
5.1 Review in November 1997 the strategy for the communication and promotion of EEO in Council.
5.2 Review in November 1997 the role of the specialist communications and promotions member.
5.3 Finalise and distribute the procedures brochure by July 1997 that outlines the steps involved when EEO representatives are contacted.
5.4 Facilitate Target Group Networks
• Target group representatives to provide the opportunity for the development of networks. • Target group representatives to report back quarterly to committee meetings and to the monthly working party meetings.
As identified in the EEO Consultative Committee Management Plan the following have been achieved:
• Committee’s role, structure, membership and term have been reviewed.
• EEO Workshops for staff are conducted on a monthly basis - currently approximately 85% of all staff have attended a workshop.
78 CHRISTCHURCH CITY COUNCIL EQUAL EMPLOYMENT OPPORTUNITY POLICY
• Annual forums for staff to comment on the EEO Policy and Management Plan have been conducted in 1998.
• A procedures brochure for staff outlining the steps involved following contacting an EEO representative has been produced and circulated around the organisation.
• All Target Group Networks have been established and are working through the organisation.
• The EEO Working Party meets on a monthly basis and reveives feedback from each target group representative.
• The EEO Consultative Committee meets quarterly.
• All advertised Job Descriptions/Job Value Statements are monitored to ensure alignment with the principles of EEO.
• The Policy for the Prevention of Sexual Harassment in the workplace is currently under review.
• A policy for the Prevention of Harassment and Bullying in the Workplace is currently being drafted for release in December 1998.
• An Ethnic Profile has been prepared and circulated around the organisation. A Forum to review the profile has been held. Feedback from the Forum has yet to be analysed. Appropriate action plans to follow.
• Salaried Staff Gender Profile Consulation Report has been released. A project team, Strategies for Salaried Women, has been formed and is currently working on strategies in six identified areas.
• Reviewed Staff Recruitment and Selection Manual.
79 INDEX
Page
Auditors Report 11 - 12
Consolidated Financial Statements 13 - 18
Internal Service Providers 61
Elected Members 3
Equal Employment Opportunity Policy 78 - 79
Financial Highlights 10
Financial Management Policies 9
Highlights of the Year 4 - 8
Mayor and Councillors 3
Mission Statement 2
Senior Management 3
Significant Activities Art Gallery 34 Car Parking 35 City Streets 36 - 37 Convention and Entertainment Facilities 38 Economic Development and Employment 39 - 40 Environmental Policy and Planning 41 - 42 Environmental Services 43 - 44 Housing 45 Leisure and Community Services 46 - 47 Library Services 48 - 49 Parks 50 - 51 Public Accountability 52 - 53 Refuse 54 Service Delivery and Advice 55 - 56 Sewerage 57 - 58 Water Services 59 - 60 Summary 33
Statement of Accounting Policies and Notes to Financial Statements 19 - 32
Subsidiary Organisations etc 62 - 77
80