Quarterly Report
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QUARTERLY REPORT QUARTER 3, 2019/20 01 January 2020 to 31 March 2020 215 Hastings Street, Napier 4110 Private Bag 6010, Napier 4142 Phone: 06 835 7579 Email: [email protected] Website: napier.govt.nz Prepared in accordance with the requirements of the Local Government Act 2002 Contents Financial Performance Snapshot .............................................................................................. 2 Service Performance Snapshot ................................................................................................. 3 Treasury Management Summary .............................................................................................. 5 Cumulative Quarterly Graphs ..................................................................................................... 6 This report summarises the Council’s progress in the third quarter of 2019/20 towards fulfilling the intentions in the Summary Net Operating Expenditure of Activity Groups .............................................. 9 Annual Plan. Quarterly performance is assessed against Activity Group Detail ................................................................................................................... 10 Income, Total Operating Expenditure, Capital Expenditure Democracy & Governance ......................................................................................................11 and Key Performance Measures. Transportation ............................................................................................................................14 Stormwater ..................................................................................................................................18 Wastewater ................................................................................................................................22 Water Supply .............................................................................................................................25 Other Infrastructure ................................................................................................................29 City Strategy ..............................................................................................................................34 Community and Visitor Experiences ................................................................................42 Property Assets ........................................................................................................................59 Support Units ........................................................................................................................... 64 Rates and Special Funds Financial Summary ....................................................................67 People and Capability Report ..................................................................................................68 City Strategy Regulatory Activity Report ...........................................................................70 Napier City Council - Quarterly Report Q3 2019/20 Report - Quarterly Napier City Council 1 Financial Performance Snapshot The year to date net operating surplus of $237k is $247k favourable to the budgeted deficit of $10k. This Performance v Budget ($000) favourable variance is attributable to a combination of factors as outlined below: Revenue: Total Revenue • Financial and Development contribution revenue is $2m above budget year to date due to the timing of revenue allocated ahead of schedule • Rates revenue is $490k higher than budget due to additional income resulting from a review of the rates system Total Operating Expenditure • Finance revenue is $630k above budget year to date due to more funds invested than anticipated as a result of less than planned capital expenditure • Other revenue is $1.5m higher than budget due to higher than expected revenue from transfer station, Total Capital Expenditure lease income and timing of DIA funding received for the 3 waters review. Expenditure - 10,000 20,000 30,000 40,000 50,000 60,000 • Employee benefit is $800k lower than budget due to vacancies across the organisation Budget YTD Actual YTD • Depreciation is higher than budget. A revaluation of assets in 2018/19 resulted in an increase in asset value which has impacted depreciation in 19/20 • Other operating expenses are $3.6m above budget year to date due to costs relating to the Aquarium business case, legal expenses and lower than planned recharging of in- house labour due to vacancies. Figures are shown in thousands ($,000) Year to Date Mar 2020 Year End * Variance Key Revised Revised Annual Favourable / Underspent All Council Actual Budget Variance * % Variance Budget Plan Unfavourable / Overspent Revenue Rates Revenue 45,812 45,323 489 1% 60,541 60,541 Finance Revenue 1,193 564 629 >100% 753 753 Financial and Development Contributions 4,439 2,462 1,977 >100% 3,349 3,349 Subsidies and Grants 4,346 4,280 67 2% 8,848 8,848 Other Revenue 27,510 26,056 1,454 6% 51,149 51,183 Other gains/losses 113 187 (74) (40)% 1,196 1,196 83,413 78,872 4,541 125,835 125,869 Expenditure Employee Benefit Expense 28,591 29,391 800 3% 39,081 39,013 Depreciation and Amortisation 20,026 18,703 (1,323) (7)% 24,938 24,938 Finance Costs - - - - - Other Operating Expenses 34,559 30,974 (3,585) (12)% 51,184 48,341 Share of associate surplus/deficit - (186) (186) (100)% (248) (248) Offsetting Expenditure - - - 0 0 83,176 78,882 (4,294) 114,954 112,044 Napier City Council - Quarterly Report Q3 2019/20 Report - Quarterly Napier City Council Net Operating (Surplus) / Shortfall (237) 10 247 11% (10,881) (13,825) 2 Service Performance Snapshot Key Highlights January In January Central Government announced funding to enable us to progress the region-wide Three Waters Review. The project aligns with the region’s strategic priority for the 2019-22 triennium – water safety, security and planning - agreed by the Hawke’s Bay Leaders Forum on 25th November 2019. February Napier’s new parents’ and caregivers’ room, Te Kōhungahunga Atawhai, opened in February. Based in Ocean Boulevard, Te Kōhungahunga Atawhai is intended to be a sanctuary for parents and caregivers of very young children. March In mid-March various discussion documents on different aspects of our District Plan went live on our website. The discussion documents outline potential plans for greenfield residential developments, preserving our cultural heritage, promoting city living, to name just a few. Affected groups were contacted requesting their feedback. As the lead organisation of the award-winning Safer Napier programme, NCC organised & hosted a two-day workshop on Crime Prevention Through Environmental Design (CPTED), featuring Australian expert John Goldsworthy. The workshop was held in mid-March. CPTED can build a sense of community, reduce victimisation, opportunities for crime, and fear of crime. The workshop was attended by staff from Napier, Hastings, Tararua, Central Hawke’s Bay, Taupo and Whanganui councils, NZ Police, and other organisations. A National State of Emergency was declared at 12.21pm on 25 March 2020 due to COVID-19. Council’s Incident Management Team began operating as soon as lockdown commenced on 23 March 2020. Napier City Council - Quarterly Report Q3 2019/20 Report - Quarterly Napier City Council 3 Service Performance Snapshot continues Key Performance Measures This quarter, 91% of key performance indicators (90 of 99) measured on a monthly or quarterly basis were achieved, or are in progress and on target to be achieved by year end. Any measures which were not achieved are explained in the activity sections of this report, along with the full list of performance measures and results. Napier City Council - Quarterly Report Q3 2019/20 Report - Quarterly Napier City Council 4 Treasury Management Summary Investments Report Investment Types Held at Quarter-End Range of Interest Rates Negotiated During the Quarter Amount ($,000) Rate Date Call Deposits 0 Call Deposits (lowest) N/A All Average 12 Call Deposits (highest) N/A All Term S&P Credit Month Int. Deposits Rating Rate Term Deposits (lowest) 1.60% 31/03/020 Westpac AA− 2.52% 1,000,000 Term Deposits (highest) 3.26% 17/01/2020 ANZ AA− N/A 0 ASB AA− 2.75% 22,000,000 BNZ AA− 2.70% 18,000,000 Weighted Average Interest Rate for All Currently Held Investments Kiwibank A 2.68% 6,000,000 Amount Average ($,000) Rate 47,000,000 Call Deposits 0 0.00% Term Deposits 47,000 2.72% Total Investments as at 31 December 2019 $47,000,000 $47,000 Maturity Profile of Investments Weighted Average Interest Rate as at 31 March 2020 2.72% Lower Upper Within Benchmark Average Interest Rate as at 31 March 2020 0.84% Term Percentage Limit Limit Limits 0 - 6 months* 94.7% 30% 80% No u (Benchmark = average 6-month ‘BKBM’ mid-rate of today and 6 months ago) Napier City Council - Quarterly Report Q3 2019/20 Report - Quarterly Napier City Council 6 - 12 months* 5.3% 20% 70% No u u 1 - 3 years 0.0% 0% 50% Yes External Loans Report 3 - 5 years 0.0% 0% 20% Yes u Loans Raised During Quarter *Term deposits in the previous quarter were structured for cashflows anticipated to occur prior to Christmas. When those cashflow assumptions moved further out, it was intended that term deposit maturities would in turn began moving further out. However the unprecedented events of the third quarter of 2019/20 Amount Interest Rate necessitated cash reserves to be held short-term for immediate cashflow needs. Local Authority Stock - Floating Nil N/A The current yield curve inversion,