Executive, Audit & Risk Committee Agenda October 2018

Executive, Audit & Risk Committee

Tuesday 23 October 2018 10.00am Taranaki Regional Council, Stratford Executive, Audit & Risk Committee - Agenda

Agenda for the meeting of the Executive, Audit & Risk Committee to be held in the Taranaki Regional Council chambers, 47 Cloten Road, Stratford, on Tuesday 23 October 2018 commencing at 10.00am.

Members Councillor D L Lean (Committee Chairperson) Councillor M J Cloke Councillor M P Joyce Councillor D N MacLeod Councillor N W Walker Councillor C S Williamson

Apologies

Notification of Late Items

Item Page Subject Item 1 3 Confirmation of Minutes

Item 2 7 Financial and Operational Report

Item 3 69 Quarterly Operational Report - September 2018

Item 4 114 Taranaki Stadium Trust 2017/2018 Annual Report

Item 5 142 Public Transport Operational Update for the quarter ending 30 September 2018

Item 6 154 Public Excluded

Item 7 155 Confirmation of Confidential Minutes

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Agenda Memorandum

Date 23 October 2018

Memorandum to Chairperson and Members Executive, Audit and Risk Committee

Subject: Confirmation of Minutes – 10 September 2018

Approved by: M J Nield, Director-Corporate Services

B G Chamberlain, Chief Executive

Document: 2134337

Resolve That the Executive, Audit and Risk Committee of the Taranaki Regional Council: 1. takes as read and confirms the minutes of the Executive, Audit and Risk Committee meeting of the Taranaki Regional Council held in the Taranaki Regional Council chambers, 47 Cloten Road, Stratford, on Monday 10 September 2018 at 10.00am 2. notes the recommendations therein were adopted by the Taranaki Regional Council on 18 September 2018. Matters arising Appendices Document #2118999 – Minutes Executive, Audit and Risk Committee

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Minutes of the Executive, Audit and Risk Committee Meeting of the Taranaki Regional Council, held in the Taranaki Regional Council Chambers, 47 Cloten Road, Stratford, on Monday 10 September 2018 at 10.00am.

Members Councillors D L Lean (Committee Chairperson) M J Cloke M P Joyce D N MacLeod N W Walker C S Williamson

Attending Messrs M J Nield (Director-Corporate Services) Mrs R Johnson (Financial Services Manager) Mrs K van Gameren (Committee Administrator) Mr P Ledingham (Communications Officer)

Apologies There were no apologies.

Notification of Late Items There were no late items of business.

1. Confirmation of Minutes – 30 July 2018

Resolved

THAT the Executive, Audit and Risk Committee of the Taranaki Regional Council: 1. takes as read and confirms the minutes of the Executive, Audit and Risk Committee meeting of the Taranaki Regional Council held in the Taranaki Regional Council chambers, 47 Cloten Road, Stratford, on Monday 30 July 2018 at 10.00am 2. notes the recommendations therein were adopted by the Taranaki Regional Council on 7 August 2018. Joyce/MacLeod

Matters arising

There were no matters arising.

Doc# 2118999-v1

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2. Financial and Operational Report

2.1 The memorandum to receive information on the operational and financial performance of the Council was noted and discussed by the Committee. It was noted that the Council has been focused on the preparation and audit of the Council’s 2017/2018 Annual Report. The audit is running a few days later than usual. Consequently, last year’s ledger has not been able to be closed in sufficient time to produce the July 2018 Monthly Financial Report. This report will be presented to the next meeting of the Executive, Audit and Risk Committee. There are no known financial issues for 2018/2019 to date.

Recommended THAT the Taranaki Regional Council 1. receives the memorandum 2. notes the Regional Integrated Ticketing System update 3. notes the digital media report 4. notes the health and safety report. Williamson/Cloke

3. 2018/2019 Insurance Programme

3.1 Mrs R Johnson, Financial Services Manager, spoke to the memorandum informing the Committee on the placement of the Council’s 2018/2019 insurance programme.

3.2 The Committee noted the addition, for the first time, of cyber risk insurance to the Council’s programme. Mr M J Nield, Director-Corporate Services, provided an overview of the Council’s internal information systems procedures designed to mitigate risk and provide security for data and records.

Recommended THAT the Taranaki Regional Council 1. notes the placement of insurance and coverage for material damage, business interruption, motor vehicles, personal accident, marine hulls, fidelity guarantee, travel, employer’s liability, statutory liability, cyber risk, hall hirer’s liability and combined liability risks for 2018/2019. MacLeod/Walker

4. Regional Software Holdings Limited Annual Report for the year ended 30 June 2018

As a Director on Regional Software Holdings Limited, Mr M J Nield, Director- Corporate Services, declared his interest to the Executive, Audit and Risk Committee and facilitated discussion only on the Regional Software Holdings Limited Annual General Meeting and Annual Report for the year ended 2018 item.

Executive, Audit and Risk Committee Meeting Monday 10 September 2018

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4.1 Mr M J Nield, Director-Corporate Services, spoke to the memorandum to receive and consider the Regional Software Holdings Limited’s Annual Report for the year ended 30 June 2018.

Recommended

THAT the Taranaki Regional Council 1. receives the Regional Software Holdings Limited’s Annual Report for the year ended 30 June 2018. Lean/Williamson

5. Public Excluded

In accordance with section 48(1) of the Local Government Official Information and Meetings Act 1987, resolves that the public is excluded from the following part of the proceedings of the Executive, Audit and Risk Committee meeting held on Monday 10 September 2018 for the following reason/s:

Item 6 - Confirmation of Confidential Minutes

That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information where the withholding of the information is necessary protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.

Item 7 – Port Taranaki Limited Annual Report and Annual General Meeting

MacLeod/Williamson

There being no further business, the Committee Chairperson, Councillor D L Lean, declared the open meeting of the Executive, Audit and Risk Committee closed at 10.30am.

Confirmed

Committee Chairperson: ______D L Lean

Date: 23 October 2018

Executive, Audit and Risk Committee Meeting Monday 10 September 2018

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Agenda Memorandum

Date 23 October 2018

Memorandum to Chairperson and Members Executive, Audit & Risk Committee

Subject: Financial and Operational Report

Approved by: M J Nield, Director—Corporate Services

B G Chamberlain, Chief Executive

Document: 2136804

Purpose The purpose of this memorandum is to receive information on the operational and financial performance of the Council and to confirm the use of the Council’s Common Seal.

Recommendations That the Taranaki Regional Council: 1. receives the memorandum and the July and August 2018 Monthly Financial Reports 2. notes the Regional Integrated Ticketing System update 3. notes the digital media report 4. notes the health and safety report.

Background The Council produces a Monthly Financial Report outlining the financial performance for the month and year to date. This memorandum supports the Monthly Financial Report by providing additional supporting operational and financial information. The Council operates its Common Seal under delegated authority. Part of that delegated authority is the reporting back of all Seal transactions.

1. Monthly Financial Reports Attached are the Monthly Financial Reports for July and August 2018.

In the “Financial Indicators Section”, for revenue, expenditure and operating surplus/deficit, for the whole of the Council the actual year to date (YTD) performance is compared against the YTD budget. A green variance indicates that the variance is within plus or minus 5% and less than $50,000. A yellow variance indicates that the variance is greater than plus or minus 5% and between $50,000 and $100,000 but less than plus or minus 10% and more than $100,000. A red variance indicates that the variance is more than plus or minus 10% and

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more than $100,000. The arrow indicates the trend over time. A green up arrow indicates and improving trend and a red down arrow indicates a deteriorating trend.

The financial performance pie graphs for operating expenditure and income show the actual performance against budget and the forecast performance against budget, accumulated for all activities. The green slice indicates the number of activities where the variance is within plus or minus 5% and less than $50,000. The yellow slice indicates the number of activities where the variance is greater than plus or minus 5% and between $50,000 and $100,000 but less than plus or minus 10% and more than $100,000. The red slice indicates the number of activities where the variance is more than plus or minus 10% and more than $100,000.

The operational performance pie graphs for levels of service and individual activities show the actual performance against budget and the forecast performance against budget, accumulated for all activities. The green slice indicates the number of levels of service/activities where the actual performance is on target. The yellow slice indicates the number of levels of service/activities where the actual performance is at risk of not being achieved. The red slice indicates the number of levels of service/activities where the actual performance is not meeting the target.

For each Group of Activities (Resource management, Biosecurity and biodiversity, Transport, Hazard management, Recreation culture and heritage, and Regional representation, advocacy and investment management: In the “Financial Indicators Section”, for revenue and expenditure, for that group of activities, the actual year to date (YTD) performance is compared against the YTD budget. A green variance indicates that the variance is within plus or minus 5% and less than $50,000. A yellow variance indicates that the variance is greater than plus or minus 5% and between $50,000 and $100,000 but less than plus or minus 10% and more than $100,000. A red variance indicates that the variance is more than plus or minus 10% and more than $100,000. The arrow indicates the trend over time. A green up arrow indicates and improving trend and a red down arrow indicates a deteriorating trend.

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slice indicates the number of levels of service/activities where the actual performance is at risk of not being achieved. The red slice indicates the number of levels of service/activities where the actual performance is not meeting the target.

Financially, the Council is in-line with the estimates established for 2018/2019 in the 2018/2028 Long-Term Plan. At 31 August 2018, the overall financial result is ahead of budget. This is due to timing variances and the full year forecasted result is expected to be on target with the exception of Yarrow Stadium, which is forecast to be over budget at year end as the Council’s share of the recovery programme cost is realised. Significant income and expenditure variances (plus or minus $100,000) are:  State of the environment monitoring - $106,684 under budget due to vacancies in science services departments and the current emphasis on compliance monitoring reporting.  Enhancement grants - $236,057 under budget due to the “Transforming Taranaki” Fresh Water Improvement Fund grants not occurring until later in the financial year.  Government grant revenue is $233,332 under budget due to the “Transforming Taranaki” Fresh Water Improvement funding not being received until later in the financial year.  Recreation, culture and heritage revenue - $100,285 over budget due to the 2017/2018 Pukeiti Trust Distribution being received in August 2018.

2. Operational report Operationally, programmes are currently on target with the planned levels of activity established for 2018/2019 in the 2018/2028 Long-Term Plan. The Quarterly Operational Report for September 2018 is part of the Agenda for this meeting.

3. Regional integrated ticketing project (RITS) The RITS project continues to progress through the respective work programmes. These include financial policies and procedures, user acceptance test cases, the smart card terms and conditions and marketing tool box.

INIT have confirmed that the second week long Factory Acceptance Testing (FAT2) will commence Monday 29 October 2019 in Dunedin. The same RITS representatives that attended FAT in Germany will be required.

Dates have been tentatively scheduled for the two additional testing phases System Acceptance Testing and User Acceptance Testing.

No update is available for Project Next (the National Ticketing Solution led by Greater Wellington).

4. Digital Media monitoring Communications activities are delivered across a range of channels including publications, media releases, advertising and digital media. Some recent highlights are:  Media releases, newspaper stories and social media posts on Towards Predator-Free Taranaki, enforcement action, regional gardens, public transport, the Annual Report and PFAS investigations.

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 The Council’s education programme continues to be busy supporting 10 schools currently involved in Towards Predator-Free Taranaki with monitoring and trapping programmes. Other class visits/field trips have focused on the river, marine environment, regional gardens and biodiversity.  The roll out of Towards Predator-Free Taranaki continues to be supported by a wide range of communications and education activities.  Preparation is underway for presentation of the Council’s 2018 Environmental Awards at the end of October.  Finalising and launching Phase 3 of the website development project.  Graphic design and communications support for a wide range of Council activities.

Council newsletter Talking Taranaki, the bimonthly email newsletter, was launched in November 2017 and the sixth issue was published in early October 2018, bringing its first full calendar year to a close. Each issue was emailed to an average 6,957 email addresses and achieved an average 'open rate' of 32.6% (Government sector average: 20.5%) and an average 'click rate' of 3.6% (Government sector average: 2.6%). The most popular links were to videos. There have been a total of 242 'unsubscribes', or 3.5% of the average total number of recipients per edition. The low unsubscribe rate bears out the mainly positive feedback received on the newsletter, which is also published in community newspapers and on the web. Talking Taranaki will continue to be published in the coming calendar year using existing formats and frequency.

ALGIM recognition Talking on Water, the Council's 2017 campaign to raise awareness of issues relating to freshwater quality, was among four finalists for this year's Association of Local Government Information Management (ALGIM) 'Best Digital Service' award, and officers were invited to deliver a presentation to the ALGIM Spring Conference in Auckland in September.

The campaign was fronted by two cartoon characters and was received with interest by conference delegates, who came from 44 Councils nationwide. The eventual winner was Waipa District Council for its LTP engagement campaign that included the use of virtual- reality goggles. Highly commended was Whanganui District Council for its project to provide online access to the entire collection of the Sarjeant Gallery Te Whare o Rehua Whanganui, and the fourth finalist was Matamata-Piako District Council for its use of digital tools to promote an international mass-activity challenge involving 15 minutes of exercise by as many people as possible on the nominated day.

Car-free day World Car-Free Day took place in September and this was leveraged as an opportunity to get more people to give public transport a go. Free bus travel was offered on 21 and 22 September on the region’s Citylink, Connector and Southlink services. We had some very pleasing results with an increase in patronage across the board. For example, comparing Car- Free Friday to the Friday before, we had a 27% increase in Citylink services and 24.3% increase on Connecter services.

This campaign was delivered through a range of channels – radio ads, social media, posters in buses, newspaper ads and the Taranaki Daily News published two articles which helped generate awareness.

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Council website Phase 3 work is complete and we are now focusing on campaigns to get people using the new features. There is now a ‘surf-watch’ page where people can access everything they need to make a decision about when and where they surf, all in one place. This includes wind direction data, as well as other third party data (i.e. webcams, swell predictions, weather). Another key feature includes a Journey Planner for buses and the Environmental section of the website is more mobile friendly.

Social media Over this time period (29 August – 9 October) the Council has made 68 Facebook posts and 16 Twitter posts across its Council, gardens and transport pages.

Followers of our pages are consistently increasing (341 more followers over this period) meaning that our content is reaching and engaging more people.

The Taranaki Regional Council Instagram account (which is a more visual platform) now has 672 followers (99 more than the last report). We have made 13 posts over this period. If you use Instagram personally, feel free to follow this page - @TaranakiRC.

We closely observe the performance of our posts on Facebook, Twitter and Instagram. As well as taking note of what posts achieve the highest reach and engagement, we regularly engage in conversation with members of the public who comment on our posts. Often our conversations require input from staff and directors.

Social media by the numbers Our Facebook page posts (across all five pages) reached 128,591 people and 9,288 of these people have liked, shared, clicked or commented on our posts. As you will see, our Facebook page followers are constantly increasing with a total of 229 more followers across our five pages over this period. Our Twitter posts (across our two pages) reached 4,942 people and 100 engaged with them.

Facebook page Page followers Reach Engagement TaranakiRegionalCouncil 3,629 (+97) 83,442 6,087 TaranakiPublicTransport 407 (+15) 11,880 1,090 Túpare 856 (+38) 10,492 648 Pukeiti 1,334 (+52) 12,382 858 Hollard Gardens 1,151 (+27) 10,395 605 Facebook group Members Taranaki Schools Environment Group 31

Twitter profile Followers Impressions Engaged @TaranakiRC (TRC main) 1,788 (+13) 4,637 94 @TaranakiRG (Gardens) 581 305 6

Top Facebook posts (of 68 across our pages and group) Reach Engaged 1 “ Pete Morgan is one of the lucky ones. Lucky enough to live in 8,294 1,033 a spot, in Taranaki, where there’s native birds in his backyard every day…” (Towards Predator-Free Taranaki)

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2 “ New Plymouth residents can pick up a rat trap and box this 11,776 980 month, becoming an urban trapper and supporting the city’s biodiversity…”(Towards Predator-Free Taranaki) 3 “ Urban trappers are luring New Plymouth rats with a range of 6,322 697 tempting flavours, from peanut butter to avocado, macadamia butter and pineapple lumps…” (Towards Predator-Free Taranaki) 4 “ Are you good at identifying birds? Do you want to be part of 7,620 604 taking Taranaki towards predator-free? Get involved in Taranaki’s biodiversity monitoring...” (Towards Predator-Free Taranaki) 5 “ Hear why it's critical for one in five households in New 13,246 542 Plymouth district to trap in their back yard, removing rats, helping support Taranaki's biodiversity…”(Towards Predator- Free Taranaki) 6 “ The Te Henui walkway, bordering on the suburb of 5,636 434 Merrilands, is an important city greenspace with abundant kererū, tūī and fantail…”(Towards Predator-Free Taranaki) 7 “ Check out these NEW WHEELS! This big, bright, brand-new 2,261 403 bus entered service today as the Hāwera-New Plymouth Connector, making four return trips each weekday with extensions from and to Opunake on the first and final trips respectively…” (Buses) 8 “ If you're looking for something to do over the school holidays 2,411 367 you should come and visit Hollard Gardens. We've got it all…” (Hollard Gardens) 9 “ IT'S SPRING TIME! Soak it all in at Pukeiti - there's plenty of 5,591 328 colour to lift your mood, walking tracks to get some exercise & of course, the Founders Cafe - Pukeiti Garden is now open (Fri - Sun 10am - 4pm at the moment, then every day from 1 October onwards). “ (Pukeiti) 10 “ Come down and see us at The Seaside Market today, 10am- 2,175 269 2pm at Ngamotu Beach! Chat with our friendly team about how to get trapping in your backyard to protect biodiversity.” (Towards Predator-Free Taranaki)

Top Tweets (of 16 across our two profiles) Impressions Engaged 1 “ See why it's critical that one in five households in New 359 17 Plymouth district trap in their back yard...” (Towards Predator-Free Taranaki) 2 “ Look what hit the roads in #Taranaki today - a brand 495 11 new Connector bus which makes four return trips each weekday from #Hawera to #NewPlymouth with extensions from and to #Opunake. Find out what's different about this new bus...” (Buses) 3 “ We are looking for a new Events Facilitator to 465 9 coordinate our Regional Gardens’ events. As you may

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know, Pukeiti, Hollards & Tūpare are rapidly growing & developing so it's a very exciting time to join a buzzing team!..” (Jobs) 4 “ If you thought something was missing in #September, it 159 7 might have been the #rain. Some places in #Taranaki were down to a third of their normal monthly totals…” (Hydrology) 5 “ Leave the car at home to celebrate #WorldCarFreeDay! 554 7 Travel FREE on all Citylink buses this Friday (21 Sept) and Saturday (22 Sept). You can also travel free on the Hawera to New Plymouth #bus…” (Buses)

5. Health and Safety The health and safety report is attached.

6. Common Seal The following document was signed under seal during the period 10 October 2018:  No common seal documents signed

Decision-making considerations Part 6 (Planning, decision-making and accountability) of the Local Government Act 2002 has been considered and documented in the preparation of this agenda item. The recommendations made in this item comply with the decision-making obligations of the Act.

Financial considerations—LTP/Annual Plan This memorandum and the associated recommendations are consistent with the Council’s adopted Long-Term Plan and estimates. Any financial information included in this memorandum has been prepared in accordance with generally accepted accounting practice.

Policy considerations This memorandum and the associated recommendations are consistent with the policy documents and positions adopted by this Council under various legislative frameworks including, but not restricted to, the Local Government Act 2002, the Resource Management Act 1991 and the Local Government Official Information and Meetings Act 1987.

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Iwi considerations This memorandum and the associated recommendations are consistent with the Council’s policy for the development of Māori capacity to contribute to decision-making processes (schedule 10 of the Local Government Act 2002) as outlined in the adopted long-term plan and/or annual plan. Similarly, iwi involvement in adopted work programmes has been recognised in the preparation of this memorandum.

Legal considerations This memorandum and the associated recommendations comply with the appropriate statutory requirements imposed upon the Council.

Appendices/Attachments Document 2136855: Health and Safety Report—August/September 2018 Document 2138147: Monthly Financial Report July 2018 Document 2139574: Monthly Financial Report August 2018

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JULY 2018 MONTHLY FINANCIAL REPORT

TARANAKI REGIONAL COUNCIL

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Table of contents

Executive summary...... 1

Key ...... 2

Statement of comprehensive revenue and expense ...... 3

Resource management ...... 4

Biosecurity and biodiversity ...... 7

Transport ...... 9

Hazard management ...... 11

Recreation, culture and heritage ...... 13

Regional representation, advocacy and investment management ...... 15

Statement of financial position ...... 17

Capital expenditure and disposals ...... 18

Local Authorities (Members’ Interests) Act 1968 ...... 19

Financial delegations...... 20

Aged debtors analysis ...... 20

Reserves ...... 20

Bank and investment balances ...... 21

Doc # 2138147

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Executive summary

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Total revenue Operating expenditure Operating surplus/deficit

What the Council earns – rates, charges, grants The costs to operate Council’s activities: Council’s total revenue less operating and investment income: expenditure:

Actual YTD: Trend: Actual YTD: Trend: Actual YTD: Trend:

$290.0K under budget $219.9K under budget $70.1K over budget $0.5M $2.7M $-2.2M

Against a YTD budget of $0.8M and a full year Against a YTD budget of $2.9M and a full year Against a YTD budget of $-2.1M and a full year budget of $32.2M. budget of $32.0M. budget of $0.2M.

FINANCIAL PERFORMANCE

Operating Expenditure Income

Actual Forecast Actual Forecast

Financial Performance Future Performance Financial Performance Future Performance

Non-financial performance

OPERATIONAL PERFORMANCE

Levels of Services Activities

Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances

The overall financial result is behind budget, however this is timing differences at the start of the new financial year. The full year forecasted result is expected to be on target with the exception of Yarrow Stadium.

Overall operational performance is on target with no significant issues to raise at this early stage

MONTHLY FINANCIAL REPORT – JULY 2018 1

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Key

This section defines the symbols and colours used in the Executive Summary and the Groups of Activities.

Introduction

For each Group of Activities:

In the “Financial Indicators Section”, for revenue and expenditure, for that group of activities, the actual year to date (YTD) performance is compared against the YTD budget. A green variance indicates that the variance is within plus or minus 5% and less than $50,000. A yellow variance indicates that the variance is greater than plus or minus 5% and between $50,000 and $100,000 but less than plus or minus 10% and more than $100,000. A red variance indicates that the variance is more than plus or minus 10% and more than $100,000. The arrow indicates the trend over time. A green up arrow indicates and improving trend and a red down arrow indicates a deteriorating trend.

In the “Operating Expenditure by Activity” section, there is a dial for each activity comparing YTD expenditure against budget and a forecast for the rest of the year. The colours are green – variance of less than plus or minus 5% and less than $50,000, yellow – plus or minus variance of more than 5% and between $50,000 and $100,000 but less than 10% and red – plus or minus variance of more than 10% and $100,000. The key components of each dial are:  The outer ring is the forecast for the rest of the year – green OK, yellow performance at risk, red target will not be achieved  The pointer indicates whether the variance is over or under budget and the colour indicates the scale of the variance – the actual variance figure sits at the bottom of the pointer  The YTD and Full Year (FY) budgets are included in the grey section. The operational performance pie graphs for levels of service and individual activities show the actual performance against budget and the forecast performance against budget, accumulated for all activities within that group of activities. The green slice indicates the number of levels of service/activities where the actual performance is on target. The yellow slice indicates the number of levels of service/activities where the actual performance is at risk of not being achieved. The red slice indicates the number of levels of service/activities where the actual performance is not meeting the target.

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Statement of comprehensive revenue and expense

This statement summarises performance against budget for the month and for the year to date.

Month Year to date 2018/2019 Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $ Cost of services Resource management 1,220,904 1,394,235 173,331 1,220,904 1,394,235 173,331 14,647,450 Biosecurity and biodiversity 402,731 427,955 25,224 402,731 427,955 25,224 6,162,607 Transport 358,130 401,679 43,549 358,130 401,679 43,549 4,809,335 Hazard management 96,008 72,574 -23,434 96,008 72,574 -23,434 918,545 Recreation culture and heritage 432,429 441,936 9,507 432,429 441,936 9,507 3,853,303 Regional representation, advocacy and 184,407 176,148 -8,259 184,407 176,148 -8,259 1,592,777 investment management Total operating expenditure 2,694,609 2,914,527 219,918 2,694,609 2,914,527 219,918 31,984,017

Revenue from exchange transactions Direct charges revenue 139,061 255,694 -116,633 139,061 255,694 -116,633 4,004,960 Rent revenue 93,815 89,166 4,649 93,815 89,166 4,649 1,070,000 Dividends 0 0 0 0 0 0 8,000,000

Revenue from non-exchange transactions General rates revenue 0 0 0 0 0 0 7,954,392 Targeted rates revenue 0 0 0 0 0 0 2,220,791 Direct charges revenue 103,721 162,594 -58,873 103,721 162,594 -58,873 5,027,196 Government grants 140,302 262,454 -122,152 140,302 262,454 -122,152 3,646,423 Vested assets 0 0 0 0 0 0 0 Total income 476,899 769,908 -293,009 476,899 769,908 -293,009 31,923,762

Operating surplus/(deficit) before finance -2,217,710 -2,144,619 -73,091 -2,217,710 -2,144,619 -73,091 -60,255 income/expenses & taxation

Finance income 28,002 25,000 3,002 28,002 25,000 3,002 300,000 Finance expense 0 0 0 0 0 0 0 Net finance expense 28,002 25,000 3,002 28,002 25,000 3,002 300,000

Operating surplus before taxation -2,189,707 -2,119,619 -70,088 -2,189,707 -2,119,619 -70,088 239,745

Other gains/losses Gains/(losses) on revaluation of properties 0 0 0 0 0 0 0 Operating surplus before taxation -2,189,707 -2,119,619 -70,088 -2,189,707 -2,119,619 -70,088 239,745 Income tax expense 0 0 0 0 0 0 10,000 Surplus/(deficit) for the period -2,189,707 -2,119,619 -70,088 -2,189,707 -2,119,619 -70,088 229,745

Other comprehensive income Revaluation of property, plant and 0 0 0 0 0 0 0 equipment Other comprehensive income, net of tax 0 0 0 0 0 0 0

Operating surplus/(deficit) -2,189,707 -2,119,619 -70,088 -2,189,707 -2,119,619 -70,088 229,745

MONTHLY FINANCIAL REPORT – JULY 2018 3

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Resource management

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Total revenue Operating expenditure

What the Council earns – rates, charges, grants and investment income: The costs to operate Council’s activities:

Actual YTD: Trend: Actual YTD: Trend:

$0.2M $253.8K under budget $1.2M $173.3K under budget

Against a YTD budget of 0.4M and a full year budget of 7.6M. Against a YTD budget of 1.4M and a full year budget of 14.6M.

Operating Expenditure by Activity

Resource management planning Consent processing and administration Compliance monitoring programmes

Pollution incidence and response State of the environment monitoring Resource investigations and projects

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Operating Expenditure by Activity

Key YTD Variance

< 5% and less than $50,000

≥ 5% < 10% and between $50,000 and $100,000

≥ 10% and greater than $100,000

Sustainable land management plans and plant Enhancement grants supply programme

Non-financial performance

OPERATIONAL PERFORMANCE

Levels of Services Activities

Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances

Overall resource management expenditure is currently under budget. Material activity variances (> or < than $100,000) are:

Enhancement grants - $112,424 under budget due to the “Transforming Taranaki” Fresh Water Improvement Fund grants not occurring until later in the financial year.

Direct charges revenue is $137,125 under budget due to timing variances amongst a range of activities.

Government grant revenue is $116,666 under budget due to the “Transforming Taranaki” Fresh Water Improvement funding not being received until later in the financial year.

Consent processing and administration expenditure and revenue is forecasted to be under budget due to lower levels of consenting work than expected.

MONTHLY FINANCIAL REPORT – JULY 2018 5

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Cost of services statement

RESOURCE MANAGEMENT

Month Year to date 2018/2019

Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $

Expenditure

Resource management planning 70,559 99,697 29,138 70,559 99,697 29,138 912,061

Consent processing and administration 99,241 134,895 35,654 99,241 134,895 35,654 1,102,352

Compliance monitoring programmes 374,847 357,316 -17,531 374,847 357,316 -17,531 3,285,944

Pollution incidents and response 103,017 102,168 -849 103,017 102,168 -849 937,722

State of the environment monitoring 189,254 251,213 61,959 189,254 251,213 61,959 2,343,291

Resource investigations and projects 77,625 45,261 -32,364 77,625 45,261 -32,364 442,908

Sustainable land management plans and 286,628 271,529 -15,099 286,628 271,529 -15,099 3,765,174 plant supply programme

Enhancement grants 19,732 132,156 112,424 19,732 132,156 112,424 1,857,998

Total expenditure 1,220,904 1,394,235 173,331 1,220,904 1,394,235 173,331 14,647,450

Income

General rates 452,876 452,876 0 452,876 452,876 0 3,232,796

Direct charges 157,341 294,466 -137,125 157,341 294,466 -137,125 5,927,698

Government grants 0 116,666 -116,666 0 116,666 -116,666 1,702,000

Investment funds 610,687 530,227 80,460 610,687 530,227 80,460 3,784,956

Total income 1,220,904 1,394,235 -173,331 1,220,904 1,394,235 -173,331 14,647,450

Operating surplus/(deficit) 0 0 0 0 0 0 0

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Biosecurity and biodiversity

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Total revenue Operating expenditure

What the Council earns – rates, charges, grants and investment income: The costs to operate Council’s activities:

Actual YTD: Trend: Actual YTD: Trend:

$0.0M $3.5K under budget $0.4M $25.2K under budget

Against a YTD budget of 0.0M and a full year budget of 1.8M. Against a YTD budget of 0.4M and a full year budget of 6.2M.

Operating Expenditure by Activity

Biosecurity and biodiversity planning Biosecurity/pest management Biodiversity

Non-financial performance

OPERATIONAL PERFORMANCE

Levels of Services Activities

Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances

Overall biosecurity and biodiversity expenditure is slightly under budget. There are no material activity variances (> or < than $100,000).

Biosecurity/pest management is forecast to run over budget and Biodiversity under budget due to the Environment Services team allocating more time to pest management activities. This should not affect the Council’s overall result.

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Cost of services statement

BIOSECURITY AND BIODIVERSITY

Month Year to date 2018 /2019

Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $

Expenditure

Biosecurity and biodiversity planning 0 6,050 6,050 0 6,050 6,050 55,920

Biosecurity/pest management 225,362 188,600 -36,762 225,362 188,600 -36,762 3,063,700

Biodiversity 177,369 233,305 55,936 177,369 233,305 55,936 3,042,987

Total expenditure 402,731 427,955 25,224 402,731 427,955 25,224 6,162,607

Income

General rates 191,902 191,902 0 191,902 191,902 0 2,076,428

Direct charges 7,842 11,375 -3,533 7,842 11,375 -3,533 1,755,098

Transfer from reserves 0 0 0 0 0 0 0

Transfer to reserves 0 0 0 0 0 0 -100,000

Investment funds 202,987 224,678 -21,691 202,987 224,678 -21,691 2,431,081

Total income 402,731 427,955 -25,224 402,731 427,955 -25,224 6,162,607

Operating surplus/(deficit) 0 0 0 0 0 0 0

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Transport

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Total revenue Operating expenditure

What the Council earns – rates, charges, grants and investment income: The costs to operate Council’s activities:

Actual YTD: Trend: Actual YTD: Trend:

$0.2M $30.7K under budget $0.4M $43.5K under budget

Against a YTD budget of 0.2M and a full year budget of 3.1M. Against a YTD budget of 0.4M and a full year budget of 4.8M.

Operating Expenditure by Activity

Regional land transport planning Passenger transport Harbour management

Key YTD Variance

< 5% and less than $50,000

≥ 5% < 10% and between $50,000 and $100,000

≥ 10% and greater than $100,000

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Non-financial performance

OPERATIONAL PERFORMANCE

Levels of Services Activities

Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances

Overall transport expenditure is under budget. There are no material activity variances (> or < than $100,000).

Cost of services statement

TRANSPORT

Month Year to date 2018 /2019

Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $

Expenditure

Regional land transport planning 10,320 11,889 1,569 10,320 11,889 1,569 109,951

Passenger transport 344,953 385,915 40,962 344,953 385,915 40,962 4,652,884

Harbour management 2,856 3,875 1,019 2,856 3,875 1,019 46,500

Total expenditure 358,130 401,679 43,549 358,130 401,679 43,549 4,809,335

Income

General rates 72,797 72,797 0 72,797 72,797 0 204,874

Targeted rates 0 0 0 0 0 0 1,207,670

Direct charges 72,636 97,863 -25,227 72,636 97,863 -25,227 1,174,360

Government grants 140,302 145,788 -5,486 140,302 145,788 -5,486 1,944,423

Government grants for capital 0 0 0 0 0 0 0

Transfer from reserves 0 0 0 0 0 0 40,000

Transfer to reserves 0 0 0 0 0 0 -1,858

Investment funds 72,394 85,231 -12,837 72,394 85,231 -12,837 239,866

Total income 358,130 401,679 -43,549 358,130 401,679 -43,549 4,809,335

Operating surplus/(deficit) 0 0 0 0 0 0 0

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Hazard management

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Total revenue Operating expenditure

What the Council earns – rates, charges, grants and investment income: The costs to operate Council’s activities:

Actual YTD: Trend: Actual YTD: Trend:

$0.0M $1.7K under budget $0.1M $23.4K over budget

Against a YTD budget of 0.0M and a full year budget of 0.0M. Against a YTD budget of 0.1M and a full year budget of 0.9M.

Operating Expenditure by Activity

Civil defence emergency management Flood management and general river control River control schemes

Key YTD Variance

< 5% and less than $50,000

≥ 5% < 10% and between $50,000 and $100,000

≥ 10% and greater than $100,000

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Non-financial performance

OPERATIONAL PERFORMANCE

Levels of Services Activities

Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances

Overall hazard management expenditure is over budget. There are no material activity variances (> or < than $100,000).

Cost of services statement

HAZARD MANAGEMENT

Month Year to date 2018 /2019

Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $

Expenditure

Civil defence emergency management 33,270 33,270 0 33,270 33,270 0 399,236

Flood management and general river 24,908 26,782 1,874 24,908 26,782 1,874 251,881 control

River control schemes 37,830 12,522 -25,308 37,830 12,522 -25,308 267,428

Total expenditure 96,008 72,574 -23,434 96,008 72,574 -23,434 918,545

Income

General rates 32,664 32,664 0 32,664 32,664 0 141,757

Targeted rates 0 0 0 0 0 0 711,706

Direct charges 0 1,667 -1,667 0 1,667 -1,667 20,000

Government grants 0 0 0 0 0 0 0

Transfer from reserves 45,303 0 45,303 45,303 0 45,303 0

Transfer to reserves 0 0 0 0 0 0 -45,651

Investment funds 18,042 38,243 -20,201 18,042 38,243 -20,201 165,968

Total income 96,008 72,574 23,434 96,008 72,574 23,434 993,780

Operating surplus/(deficit) 0 0 0 0 0 0 75,235

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Recreation, culture and heritage

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Total revenue Operating expenditure

What the Council earns – rates, charges, grants and investment income: The costs to operate Council’s activities:

Actual YTD: Trend: Actual YTD: Trend:

$0.0M $7.9K under budget $0.4M $9.5K under budget

Against a YTD budget of 0.0M and a full year budget of 0.2M. Against a YTD budget of 0.4M and a full year budget of 3.9M.

Operating Expenditure by Activity

Regional gardens Puke Ariki Yarrow Stadium

Key YTD Variance

< 5% and less than $50,000

≥ 5% < 10% and between $50,000 and $100,000

≥ 10% and greater than $100,000

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Non-financial performance

OPERATIONAL PERFORMANCE

Levels of Services Activities

Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances

Overall recreation, culture and heritage expenditure is on budget. There are no material activity variances (> or < than $100,000). Yarrow Stadium is forecast to be over budget at year end as the Council’s share of the total cost of the recovery programme is realised.

Cost of services statement

RECREATION CULTURE AND HERITAGE

Month Year to date 2018 /2019

Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $

Expenditure

Regional gardens 284,429 293,936 9,507 284,429 293,936 9,507 2,827,303

Puke Ariki 75,000 75,000 0 75,000 75,000 0 150,000

Yarrow Stadium 73,000 73,000 0 73,000 73,000 0 876,000

Total expenditure 432,429 441,936 9,507 432,429 441,936 9,507 3,853,303

Income

General rates 197,747 197,747 0 197,747 197,747 0 1,566,192

Targeted rates 0 0 0 0 0 0 0

Direct charges 4,749 12,667 -7,918 4,749 12,667 -7,918 152,000

Investment funds 229,932 231,522 -1,590 229,932 231,522 -1,590 1,833,696

Total income 432,429 441,936 -9,507 432,429 441,936 -9,507 3,853,303

Operating surplus/(deficit) 0 0 0 0 0 0 0

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Regional representation, advocacy and investment management

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Total revenue Operating expenditure

What the Council earns – rates, charges, grants and investment income: The costs to operate Council’s activities:

Actual YTD: Trend: Actual YTD: Trend:

$0.0M $0.0K under budget $0.2M $8.3K over budget

Against a YTD budget of 0.0M and a full year budget of 0.0M. Against a YTD budget of 0.2M and a full year budget of 1.6M.

Operating Expenditure by Activity

Investment management Community engagement Advocacy and response

Key YTD Variance

< 5% and less than $50,000

≥ 5% < 10% and between $50,000 and $100,000

≥ 10% and greater than $100,000

Governance

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Non-financial performance

OPERATIONAL PERFORMANCE

Levels of Services Activities

Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances

Overall regional representation and advocacy expenditure is on budget. There are no material activity variances (> or < than $100,000).

Cost of services statement

REGIONAL REPRESENTATION, ADVOCACY AND INVESTMENT MANAGEMENT

Month Year to date 2018 /2019

Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $

Expenditure

Investment management 500 500 0 500 500 0 6,000

Community engagement 29,249 32,099 2,850 29,249 32,099 2,850 292,709

Advocacy and response 29,036 30,939 1,903 29,036 30,939 1,903 278,212

Governance 125,622 112,610 -13,012 125,622 112,610 -13,012 1,015,856

Total expenditure 184,407 176,148 -8,259 184,407 176,148 -8,259 1,592,777

Income

General rates 81,029 81,029 0 81,029 81,029 0 732,346

Direct charges 213 250 -37 213 250 -37 3,000

Investment funds 103,165 94,869 8,296 103,165 94,869 8,296 857,431

Total income 184,407 176,148 8,259 184,407 176,148 8,259 1,592,777

Operating surplus/(deficit) 0 0 0 0 0 0 0

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Statement of financial position

This statement summarises the Council’s assets, liabilities and residual equity. The statement is split between current items (those expected to be realised within 12 months) and non-current items (expected to last longer than 12 months).

Month End 2018/2019 2017/2018 Actual $ Estimates $ Annual Report $ Current Assets Cash and cash equivalents 2,577,557 602,506 2,358,662 Current portion of investments 5,459,759 - 5,399,129 Trade and other receivables 948,435 2,000,000 3,915,561 Inventories 56,108 - 56,108 Prepayments 199,976 100,000 195,602 Taxation refundable 5,109 - 5,109 Work in progress 257,864 400,000 161,854 Total current assets 9,504,807 3,102,506 12,092,025

Non-current assets Treasury investments 2,527,445 5,407,975 2,500,000 Port Taranaki Ltd 26,000,000 26,000,000 26,000,000 Civic Assurance Ltd 1,000 1,000 1,000 Regional Software Holdings Ltd 798,118 798,118 798,118 Intangible assets 1,021,716 1,699,571 1,041,418 Investment properties 17,380,500 14,617,000 17,380,500 Property plant and equipment 30,245,626 33,014,493 30,211,725 Total non-current assets 77,974,405 81,538,607 77,932,761

Total assets 87,479,212 84,641,113 90,024,786

Current liabilities Trade and other payables 4,333,350 2,000,000 4,606,478 Work- in-progress 600,618 500,000 669,281 Employee entitlements current 1,175,483 935,000 1,189,559 Taxation payable - - - Total current liabilities 6,109,451 3,435,000 6,465,318

Non-current liabilities Employee entitlements term 717,400 800,000 717,400 Total non-current liabilities 717,400 800,000 717,400

Total liabilities 6,826,851 4,235,000 7,182,718

Public equity Retained earnings 64,948,459 65,188,180 67,092,864 Reserves 11,194,564 11,494,701 11,239,866 Asset revaluation reserves 4,509,338 3,723,232 4,509,338 Total public equity 80,652,361 80,406,113 82,842,068

Total liabilities and equity 87,479,212 84,641,113 90,024,786

Commentary and variances

There are no significant variances to report.

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35 Executive, Audit & Risk Committee - Financial and Operational Report

Capital expenditure and disposals

Capital expenditure in excess of $10,000 for the month was:

DESCRIPTION AMOUNT $

2018 Toyota Hi Lux Utility 39,168

Pukeiti Garden Development WIP 31,459

Pukeiti Lodge Construction WIP 41,562

Pukeiti Art WIP 10,000

Website Development - Phase 3.0 WIP 23,349

Fixed asset disposals in excess of $10,000 for the month were:-

DESCRIPTION AMOUNT $

Toyota Highlander 10,435

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Local Authorities (Members’ Interests) Act 1968

Additions to the Creditors Detail List for the month were:

DATE CODE CREDITOR NAME ADDRESS ESTABLISHED

2715 JA & MJ Gardner Trusts Partnership 48 Wood St, Patea 02 -Jul-18

2717 L & J Morgan Upper Ngariki Rd, Rahotu 02 -Jul-18

2718 Bushguard Pest Services 2 Ulysses St, Stratford 03 -Jul-18

2719 Fitzroy Surf Life Saving Club Inc. PO Box 3099, Fitzroy 03 -Jul-18

2720 Oliver Woods Farm Trust 353 Croydon Rd, Stratford 03 -Jul-18

2721 Leslie & Trina Stanley 42 Gaine St, New Plymouth 06 -Jul-18

2722 Jamze Trust 241 Barrett Rd, New Plymouth 09 -Jul-18

2723 Kat Zuidema 64 Carthew St, Okato 09 -Jul-18

2724 Pilbrow Surveying Ltd 54 Scott Rd, Te Kauwhata 11 -Jul-18

2725 National Wetland Trust PO Box 177, Pukekohe 11 -Jul-18

2726 Environmental Pest Services Ltd 2348 Tinui Valley Rd, Tinui 11 -Jul-18

2727 Kavanagh Trust Partnership PO Box 4210, New Plymouth 11 -Jul-18

2728 NJ & JD Barr 164 Lower Hunter Rd, Hawera 13 -Jul-18

2730 N3 Ltd PO Box 7170, Auckland 16 -Jul-18

2731 Wellington City Council PO Box 14342, Kilbirnie, Wellington 20 -Jul-18

2733 Karen Clark 52 Inland North Rd, Tikorangi 25 -Jul-18

Woodnet Forestry, Marginal Land and PO Box 758, Masterton 2734 Carbon Consultancy Services 30 -Jul-18

2735 Heather Meyer 19 Beech Place, Hawera 31 -Jul-18

Notes:

1. The schedule of all previously listed creditors for the purpose of the Local Authorities (Members’ Interests) Act 1968 is available for Members’ perusal. 2. The schedule excludes any staff who may have become a creditor. 3. Under the terms of Section 6 and Section (1) of the Local Authorities (Members’ Interests) Act 1968, members are required to declare if they hold directly or indirectly, a pecuniary interest other than an interest in common with the public.

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Financial delegations

The following payments were made during the period to 31 July 2018 that exceeded the budgeted approved delegated authority levels:

DESCRIPTION AMOUNT $

Nil

Aged debtors analysis

The total debtors outstanding at 31 July 2018 were aged as follows:

DESCRIPTION AMOUNT $ PERCENT %

Current balance 43,196 6

30 days balance 351,937 51

60 days balance 67,664 10

90 days and over balance 232,224 33

Total debtors 695,201 100

Reserves

As at 31 July 2018 the following reserve balances were held:

DESCRIPTION AMOUNT $

Contingency/Disaster Reserve 1,086,000

North Taranaki/Waitara River Control Scheme Reserve 1,128,144

South Taranaki Rivers Control Scheme Reserve (29,860)

Dividend Equalisation Reserve 6,395,766

Passenger Transport Rate Reserve 46,514

Egmont National Park Control Reserve 398,000

Endowment Land Sales Reserve 2,170,000

Total reserves 11, 194,564

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Bank and investment balances

As at 31 July 2018 the following cash, bank and investment balances were held:

% OF TOTAL INVESTED $ YIELD % MATURITY DATE

Bank of New Zealand:

Call Account 16 1,730,821 2.2 On Call

Current accounts 8 833,783 0.6 On Call

Subordinated Notes 10 1,004,513 5.3 17/12/2025

TSB Bank:

Cheque Accounts 639 On Call

8,482 Call Account 1.9 On Call

1,522,932 Term Investment 14 4.0 12/09/2019

1,580,870 31/03/2019 Term Investment 15 4.0

ASB Bank:

Cheque Account 3,833 On Call

Term Investment 17 1,825,897 3.4 19/08/2018

1,294,027 09/03/2019 Term Investment 12 3.5

758,964 17/09/2018 Term Investment 7 3.5

Total 100 10,564,761 3.9*

All investments are in accordance with the Investment Policy. * Weighted average interest rate

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www.trc.govt.nz

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AUGUST 2018 MONTHLY FINANCIAL REPORT

TARANAKI REGIONAL COUNCIL

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Table of contents

Executive summary...... 1

Key ...... 2

Statement of comprehensive revenue and expense ...... 3

Resource management ...... 4

Biosecurity and biodiversity ...... 7

Transport ...... 9

Hazard management ...... 11

Recreation, culture and heritage ...... 13

Regional representation, advocacy and investment management ...... 15

Statement of financial position ...... 17

Capital expenditure and disposals ...... 18

Local Authorities (Members’ Interests) Act 1968 ...... 19

Financial delegations...... 20

Aged debtors analysis ...... 20

Reserves ...... 20

Bank and investment balances ...... 21

Doc # 2139574

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Executive summary

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Total revenue Operating expenditure Operating surplus/deficit

What the Council earns – rates, charges, grants The costs to operate Council’s activities: Council’s total revenue less operating and investment income: expenditure:

Actual YTD: Trend: Actual YTD: Trend: Actual YTD: Trend:

$130.2K under budget $423.1K under budget $293.0K under budget $4.1M $4.9M $-0.8M

Against a YTD budget of $4.2M and a full year Against a YTD budget of $5.3M and a full year Against a YTD budget of $-1.1M and a full year budget of $32.2M. budget of $32.0M. budget of $0.2M.

FINANCIAL PERFORMANCE

Operating Expenditure Income

Actual Forecast Actual Forecast

Financial Performance Future Performance Financial Performance Future Performance

Non-financial performance

OPERATIONAL PERFORMANCE

Levels of Services Activities

Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances

The overall financial result is ahead of budget, however this is considered to be mainly timing differences. The full year forecasted result is expected to be on target with the exception of Yarrow Stadium.

Overall operational performance is on target with no significant issues to raise at this early stage

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45 Executive, Audit & Risk Committee - Financial and Operational Report

Key

This section defines the symbols and colours used in the Executive Summary and the Groups of Activities.

Introduction

For each Group of Activities:

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Statement of comprehensive revenue and expense

This statement summarises performance against budget for the month and for the year to date.

Month Year to date 2018/2019 Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $ Cost of services Resource management 1,017,621 1,218,216 200,595 2,238,525 2,612,451 373,926 14,647,450 Biosecurity and biodiversity 309,801 290,501 -19,300 712,532 718,456 5,924 6,162,607 Transport 340,578 381,086 40,508 698,708 782,765 84,057 4,809,335 Hazard management 70,233 62,694 -7,539 166,241 135,268 -30,973 918,545 Recreation culture and heritage 303,811 295,828 -7,983 736,240 737,764 1,524 3,853,303 Regional representation, advocacy and 127,691 124,621 -3,070 312,097 300,769 -11,328 1,592,777 investment management Total operating expenditure 2,169,735 2,372,946 203,211 4,864,343 5,287,473 423,130 31,984,017

Revenue from exchange transactions Direct charges revenue 392,926 268,194 124,732 531,988 523,888 8,100 4,004,960 Rent revenue 90,530 89,166 1,364 184,345 178,332 6,013 1,070,000 Dividends 0 0 0 0 0 0 8,000,000

Revenue from non-exchange transactions General rates revenue 1,988,598 1,988,598 0 1,988,598 1,988,598 0 7,954,392 Targeted rates revenue 555,198 555,199 -1 555,198 555,199 -1 2,220,791 Direct charges revenue 354,322 209,594 144,728 458,043 372,188 85,855 5,027,196 Government grants 150,928 262,454 -111,526 291,230 524,908 -233,678 3,646,423 Vested assets 0 0 0 0 0 0 0 Total income 3,532,503 3,373,205 159,298 4,009,402 4,143,113 -133,711 31,923,762

Operating surplus/(deficit) before finance 1,362,768 1,000,259 362,509 -854,942 -1,144,360 289,418 -60,255 income/expenses & taxation

Finance income 25,542 25,000 542 53,545 50,000 3,545 300,000 Finance expense 0 0 0 0 0 0 0 Net finance expense 25,542 25,000 542 53,545 50,000 3,545 300,000

Operating surplus before taxation 1,388,310 1,025,259 363,051 -801,397 -1,094,360 292,963 239,745

Other gains/losses Gains/(losses) on revaluation of properties 0 0 0 0 0 0 0 Operating surplus before taxation 1,388,310 1,025,259 363,051 -801,397 -1,094,360 292,963 239,745 Income tax expense 0 0 0 0 0 0 10,000 Surplus/(deficit) for the period 1,388,310 1,025,259 363,051 -801,397 -1,094,360 292,963 229,745

Other comprehensive income Revaluation of property, plant and 0 0 0 0 0 0 0 equipment Other comprehensive income, net of tax 0 0 0 0 0 0 0

Operating surplus/(deficit) 1,388,310 1,025,259 363,051 -801,397 -1,094,360 292,963 229,745

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Resource management

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Total revenue Operating expenditure

What the Council earns – rates, charges, grants and investment income: The costs to operate Council’s activities:

Actual YTD: Trend: Actual YTD: Trend:

$0.7M $226.0K under budget $2.2M $373.9K under budget

Against a YTD budget of 0.9M and a full year budget of 7.6M. Against a YTD budget of 2.6M and a full year budget of 14.6M.

Operating Expenditure by Activity

Resource management planning Consent processing and administration Compliance monitoring programmes

Pollution incidence and response State of the environment monitoring Resource investigations and projects

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Operating Expenditure by Activity

Key YTD Variance

< 5% and less than $50,000

≥ 5% < 10% and between $50,000 and $100,000

≥ 10% and greater than $100,000

Sustainable land management plans and plant Enhancement grants supply programme

Non-financial performance

OPERATIONAL PERFORMANCE

Levels of Services Activities

Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances

Overall resource management expenditure is currently under budget. Material activity variances (> or < than $100,000) are:

State of the environment monitoring - $106,684 under budget due to vacancies in science services departments and the current emphasis on compliance monitoring reporting.

Enhancement grants - $236,057 under budget due to the “Transforming Taranaki” Fresh Water Improvement Fund grants not occurring until later in the financial year.

Government grant revenue is $233,332 under budget due to the “Transforming Taranaki” Fresh Water Improvement funding not being received until later in the financial year.

Consent processing and administration expenditure and revenue is forecasted to be under budget due to lower levels of consenting work than expected.

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49 Executive, Audit & Risk Committee - Financial and Operational Report

Cost of services statement

RESOURCE MANAGEMENT

Month Year to date 2018/2019

Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $

Expenditure

Resource management planning 47,550 71,727 24,177 118,110 171,424 53,314 912,061

Consent processing and administration 66,581 84,650 18,069 165,822 219,545 53,723 1,102,352

Compliance monitoring programmes 273,338 257,465 -15,873 648,185 614,781 -33,404 3,285,944

Pollution incidents and response 83,787 73,425 -10,362 186,803 175,593 -11,210 937,722

State of the environment monitoring 139,627 184,352 44,725 328,881 435,565 106,684 2,343,291

Resource investigations and projects 31,347 35,261 3,914 108,972 80,522 -28,450 442,908

Sustainable land management plans and 365,848 378,160 12,312 652,477 649,689 -2,788 3,765,174 plant supply programme

Enhancement grants 9,543 133,176 123,633 29,275 265,332 236,057 1,857,998

Total expenditure 1,017,621 1,218,216 200,595 2,238,525 2,612,451 373,926 14,647,450

Income

General rates 344,382 344,382 0 797,258 797,258 0 3,232,796

Direct charges 498,459 353,966 144,493 655,799 648,432 7,367 5,927,698

Government grants 0 116,666 -116,666 0 233,332 -233,332 1,702,000

Investment funds 174,780 403,202 -228,422 785,467 933,429 -147,962 3,784,956

Total income 1,017,621 1,218,216 -200,595 2,238,525 2,612,451 -373,926 14,647,450

Operating surplus/(deficit) 0 0 0 0 0 0 0

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Biosecurity and biodiversity

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Total revenue Operating expenditure

What the Council earns – rates, charges, grants and investment income: The costs to operate Council’s activities:

Actual YTD: Trend: Actual YTD: Trend:

$0.0M $1.2K over budget $0.7M $5.9K under budget

Against a YTD budget of 0.0M and a full year budget of 1.8M. Against a YTD budget of 0.7M and a full year budget of 6.2M.

Operating Expenditure by Activity

Biosecurity and biodiversity planning Biosecurity/pest management Biodiversity

Non-financial performance

OPERATIONAL PERFORMANCE

Levels of Services Activities

Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances

Overall biosecurity and biodiversity expenditure is on budget. There are no material activity variances (> or < than $100,000).

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51 Executive, Audit & Risk Committee - Financial and Operational Report

Cost of services statement

BIOSECURITY AND BIODIVERSITY

Month Year to date 2018/2019

Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $

Expenditure

Biosecurity and biodiversity planning 49 4,408 4,359 49 10,458 10,409 55,920

Biosecurity/pest management 171,407 122,631 -48,776 396,769 311,231 -85,538 3,063,700

Biodiversity 138,345 163,462 25,117 315,715 396,767 81,052 3,042,987

Total expenditure 309,801 290,501 -19,300 712,532 718,456 5,924 6,162,607

Income

General rates 128,582 128,582 0 320,484 320,484 0 2,076,428

Direct charges 16,110 11,375 4,735 23,952 22,750 1,202 1,755,098

Transfer from reserves 0 0 0 0 0 0 0

Transfer to reserves 0 0 0 0 0 0 -100,000

Investment funds 165,109 150,544 14,565 368,096 375,222 -7,126 2,431,081

Total income 309,801 290,501 19,300 712,532 718,456 -5,924 6,162,607

Operating surplus/(deficit) 0 0 0 0 0 0 0

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Transport

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Total revenue Operating expenditure

What the Council earns – rates, charges, grants and investment income: The costs to operate Council’s activities:

Actual YTD: Trend: Actual YTD: Trend:

$0.5M $11.8K under budget $0.7M $84.1K under budget

Against a YTD budget of 0.5M and a full year budget of 3.1M. Against a YTD budget of 0.8M and a full year budget of 4.8M.

Operating Expenditure by Activity

Regional land transport planning Passenger transport Harbour management

Key YTD Variance

< 5% and less than $50,000

≥ 5% < 10% and between $50,000 and $100,000

≥ 10% and greater than $100,000

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53 Executive, Audit & Risk Committee - Financial and Operational Report

Non-financial performance

OPERATIONAL PERFORMANCE

Levels of Services Activities

Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances

Overall transport expenditure is under budget. There are no material activity variances (> or < than $100,000).

Cost of services statement

TRANSPORT

Month Year to date 2018/2019

Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $

Expenditure

Regional land transport planning 7,217 8,508 1,291 17,538 20,397 2,859 109,951

Passenger transport 332,968 368,703 35,735 677,922 754,618 76,696 4,652,884

Harbour management 393 3,875 3,482 3,249 7,750 4,501 46,500

Total expenditure 340,578 381,086 40,508 698,708 782,765 84,057 4,809,335

Income

General rates -75,771 -75,771 0 -2,974 -2,974 0 204,874

Targeted rates 301,918 301,918 -1 301,918 301,918 -1 1,207,670

Direct charges 111,661 97,863 13,798 184,297 195,726 -11,429 1,174,360

Government grants 150,928 145,788 5,140 291,230 291,576 -346 1,944,423

Government grants for capital 0 0 0 0 0 0 0

Transfer from reserves 0 0 0 0 0 0 40,000

Transfer to reserves 0 0 0 0 0 0 -1,858

Investment funds -148,158 -88,712 -59,446 -75,763 -3,481 -72,282 239,866

Total income 340,578 381,086 -40,508 698,708 782,765 -84,057 4,809,335

Operating surplus/(deficit) 0 0 0 0 0 0 0

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Hazard management

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Total revenue Operating expenditure

What the Council earns – rates, charges, grants and investment income: The costs to operate Council’s activities:

Actual YTD: Trend: Actual YTD: Trend:

$0.0M $3.3K under budget $0.2M $31.0K over budget

Against a YTD budget of 0.0M and a full year budget of 0.0M. Against a YTD budget of 0.1M and a full year budget of 0.9M.

Operating Expenditure by Activity

Civil defence emergency management Flood management and general river control River control schemes

Key YTD Variance

< 5% and less than $50,000

≥ 5% < 10% and between $50,000 and $100,000

≥ 10% and greater than $100,000

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Non-financial performance

OPERATIONAL PERFORMANCE

Levels of Services Activities

Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances

Overall hazard management expenditure is over budget. There are no material activity variances (> or < than $100,000).

Cost of services statement

HAZARD MANAGEMENT

Month Year to date 2018/2019

Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $

Expenditure

Civil defence emergency management 33,270 33,270 0 66,540 66,540 0 399,236

Flood management and general river 14,287 19,658 5,371 39,195 46,440 7,245 251,881 control

River control schemes 22,676 9,766 -12,910 60,506 22,288 -38,218 267,428

Total expenditure 70,233 62,694 -7,539 166,241 135,268 -30,973 918,545

Income

General rates -45,187 -45,187 0 -12,523 -12,523 0 141,757

Targeted rates 177,927 177,927 -1 177,927 177,927 -1 711,706

Direct charges 0 1,667 -1,667 0 3,334 -3,334 20,000

Government grants 0 0 0 0 0 0 0

Transfer from reserves 0 0 0 45,303 0 45,303 0

Transfer to reserves - 150,965 0 - 150,965 - 150,965 0 - 150,965 -45,651

Investment funds 107,267 -52,904 16 0,171 125,309 -14,661 139,970 165,968

Total income 89,042 81,503 7,539 185,050 154,077 30,973 993,780

Operating surplus/(deficit) 18,809 18,809 0 18,809 18,809 0 75,235

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56 Executive, Audit & Risk Committee - Financial and Operational Report

Recreation, culture and heritage

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Total revenue Operating expenditure

What the Council earns – rates, charges, grants and investment income: The costs to operate Council’s activities:

Actual YTD: Trend: Actual YTD: Trend:

$0.1M $100.3K over budget $0.7M $1.5K under budget

Against a YTD budget of 0.0M and a full year budget of 0.2M. Against a YTD budget of 0.7M and a full year budget of 3.9M.

Operating Expenditure by Activity

Regional gardens Puke Ariki Yarrow Stadium

Key YTD Variance

< 5% and less than $50,000

≥ 5% < 10% and between $50,000 and $100,000

≥ 10% and greater than $100,000

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Non-financial performance

OPERATIONAL PERFORMANCE

Levels of Services Activities

Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances

Direct charges revenue is $100,285 over budget due to the 2017/2018 Pukeiti Trust distribution being received in August 2018.

Cost of services statement

RECREATION CULTURE AND HERITAGE

Month Year to date 2018/2019

Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $

Expenditure

Regional gardens 230,811 222,828 -7,983 515,240 516,764 1,524 2,827,303

Puke Ariki 0 0 0 75,000 75,000 0 150,000

Yarrow Stadium 73,000 73,000 0 146,000 146,000 0 876,000

Total expenditure 303,811 295,828 -7,983 736,240 737,764 1,524 3,853,303

Income

General rates 95,728 95,728 0 293,475 293,475 0 1,566,192

Targeted rates 0 0 0 0 0 0 0

Direct charges 120,870 12,667 108,203 125,619 25,334 100,285 152,000

Investment funds 11,860 112,079 -100,219 241,792 343,601 -101,809 1,833,696

Total income 303,811 295,828 7,983 736,240 737,764 -1,524 3,853,303

Operating surplus/(deficit) 0 0 0 0 0 0 0

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Regional representation, advocacy and investment management

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Total revenue Operating expenditure

What the Council earns – rates, charges, grants and investment income: The costs to operate Council’s activities:

Actual YTD: Trend: Actual YTD: Trend:

$0.0M $0.1K under budget $0.3M $11.3K over budget

Against a YTD budget of 0.0M and a full year budget of 0.0M. Against a YTD budget of 0.3M and a full year budget of 1.6M.

Operating Expenditure by Activity

Investment management Community engagement Advocacy and response

Key YTD Variance

< 5% and less than $50,000

≥ 5% < 10% and between $50,000 and $100,000

≥ 10% and greater than $100,000

Governance

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59 Executive, Audit & Risk Committee - Financial and Operational Report

Non-financial performance

OPERATIONAL PERFORMANCE

Levels of Services Activities

Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances

Overall regional representation and advocacy expenditure is on budget. There are no material activity variances (> or < than $100,000).

Cost of services statement

REGIONAL REPRESENTATION, ADVOCACY AND INVESTMENT MANAGEMENT

Month Year to date 2018/2019

Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $

Expenditure

Investment management 500 500 0 1,000 1,000 0 6,000

Community engagement 29,697 22,889 -6,808 58,946 54,988 -3,958 292,709

Advocacy and response 22,460 21,819 -641 51,496 52,758 1,262 278,212

Governance 75,034 79,413 4,379 200,656 192,023 -8,633 1,015,856

Total expenditure 127,691 124,621 -3,070 312,097 300,769 -11,328 1,592,777

Income

General rates 57,293 57,293 0 138,322 138,322 0 732,346

Direct charges 149 250 -101 362 500 -138 3,000

Investment funds 70,249 67,078 3,171 173,413 161,947 11,466 857,431

Total income 127,691 124,621 3,070 312,097 300,769 11,328 1,592,777

Operating surplus/(deficit) 0 0 0 0 0 0 0

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Statement of financial position

Month End 2018/2019 2017/2018 Actual $ Estimates $ Annual Report $ Current Assets Cash and cash equivalents 2,083,727 602,506 2,358,662 Current portion of investments 3,645,156 - 5,399,129 Trade and other receivables 4,121,426 2,000,000 3,915,561 Inventories 230,568 - 56,108 Prepayments 187,811 100,000 195,602 Taxation refundable 5,109 - 5,109 Work in progress 375,599 400,000 161,854 Total current assets 10,649,396 3,102,506 12,092,025

Non-current assets Treasury investments 2,537,054 5,407,975 2,500,000 Port Taranaki Ltd 26,000,000 26,000,000 26,000,000 Civic Assurance Ltd 1,000 1,000 1,000 Regional Software Holdings Ltd 798,118 798,118 798,118 Intangible assets 1,002,095 1,699,571 1,041,418 Investment properties 17,380,500 14,617,000 17,380,500 Property plant and equipment 30,291,662 33,014,493 30,211,725 Total non-current assets 78,010,430 81,538,607 77,932,761

Total assets 88,659,826 84,641,113 90,024,786

Current liabilities Trade and other payables 4,282,751 2,000,000 4,606,478 Work- in-progress 443,520 500,000 669,281 Employee entitlements current 1,175,483 935,000 1,189,559 Taxation payable - - - Total current liabilities 5,901,755 3,435,000 6,465,318

Non-current liabilities Employee entitlements term 717,400 800,000 717,400 Total non-current liabilities 717,400 800,000 717,400

Total liabilities 6,619,155 4,235,000 7,182,718

Public equity Retained earnings 66,185,805 65,188,180 67,092,864 Reserves 11,345,529 11,494,701 11,239,866 Asset revaluation reserves 4,509,338 3,723,232 4,509,338 Total public equity 82,040,671 80,406,113 82,842,068

Total liabilities and equity 88,659,826 84,641,113 90,024,786

Commentary and variances

There are no significant variances to report

MONTHLY FINANCIAL REPORT – AUGUST 2018 17

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Capital expenditure and disposals

Capital expenditure in excess of $10,000 for the month was:

DESCRIPTION AMOUNT $

Pukeiti Lodge Construction WIP 12,081

Hydrology Sites WIP 10,800

Pukeiti Lodge Fit Out WIP 20,277

Website Development - Phase 3.0 WIP 63,525

Fixed asset disposals in excess of $10,000 for the month were:-

DESCRIPTION AMOUNT $

Nil

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Local Authorities (Members’ Interests) Act 1968

Additions to the Creditors Detail List for the month were:

DATE CODE CREDITOR NAME ADDRESS ESTABLISHED

2736 3B Marketing Ltd PO Box 15010, Auckland 01-Aug-18

2737 NZ Agrichemical Trust PO Box 10232, Wellington 01-Aug-18

2738 Mad Media Ltd 70 Lower King Rd, New Plymouth 01-Aug-18

2739 Lauree Jones PO Box 219, Waitara 02-Aug-18

2740 John Boon 2285B State Highway 3, Waverley 09-Aug-18

2741 Grove Dairy Farm (2008) Ltd 504 Patea Rd, Patea 10-Aug-18

2742 Aaron Uhlenberg 69A Celia St, Stratford 13-Aug-18

2743 CPS (NZ) Ltd 38 Angle St, Auckland 14-Aug-18

2744 PZ Contracting 3 Whitcombe Tce, RD 24, Stratford 15-Aug-18

2745 Aventedge Pty Ltd PO Box 62631, Greenland, Auckland 17-Aug-18

2746 Kaimata Sawmills Ltd PO Box 47, Inglewood 21-Aug-18

2747 CG Fleming Limited 21 King St, Opunake 29-Aug-18

2748 Gregory & Denise Carter 210 Hunter Rd. RD 13, Hawera 29-Aug-18

2749 Coastal Rugby Club PO Box 48, Opunake 29-Aug-18

Notes:

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63 Executive, Audit & Risk Committee - Financial and Operational Report

Financial delegations

The following payments were made during the period to 31 August 2018 that exceeded the budgeted approved delegated authority levels:

DESCRIPTION AMOUNT $

Nil

Aged debtors analysis

The total debtors outstanding at 31 August 2018 were aged as follows:

DESCRIPTION AMOUNT $ PERCENT %

Current balance 3,362,619 90

30 days balance 31,610 1

60 days balance 120,158 3

90 days and over balance 228,335 6

Total debtors 3,742,722 100

Reserves

As at 31 August 2018 the following reserve balances were held:

DESCRIPTION AMOUNT $

Contingency/Disaster Reserve 1,086,000

North Taranaki/Waitara River Control Scheme Reserve 1,270,940

South Taranaki Rivers Control Scheme Reserve (21,691)

Dividend Equalisation Reserve 6,395,766

Passenger Transport Rate Reserve 46,514

Egmont National Park Control Reserve 398,000

Endowment Land Sales Reserve 2,170,000

Total reserves 11,345,529

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Bank and investment balances

As at 31 August 2018 the following cash, bank and investment balances were held:

% OF TOTAL INVESTED $ YIELD % MATURITY DATE

Bank of New Zealand:

Call Account 15 1,232,224 2.2 On Call

Current accounts 10 839,456 0.6 On Call

Subordinated Notes 12 1,009,027 5.3 17/12/2025

TSB Bank:

Cheque Accounts 629 On Call

Call Account 8,494 1.9 On Call

Term Investment 18 1,528,027 4.0 12/09/2019

Term Investment 19 1,586,068 4.0 31/03/2019

ASB Bank:

Cheque Account 2,925 On Call

Term Investment 16 1,297,901 3.5 09/03/2019

Term Investment 9 761,187 3.5 17/09/2018

Total 100 8,265,938 4.1*

All investments are in accordance with the Investment Policy. * Weighted average interest rate.

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www.trc.govt.nz

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Health and Safety Dashboard

Reporting Period:

1 August 2018 – 30 September 2018

Incidents (1 July 2018 – 30 June 2019)

Illness 0 (0) Incidents 3 (3) Injury 7 (9)

ACC Claims 0 (0) Near Miss 7 (14) Notifiable 0 (0)

Types of Incidents and Injuries

Slips/Trips/Falls (no injury) - No Treatment 5 Sprains/Strains 2 First Aid 2 Cuts/Abrasions - Medical Centre - Bruising 5 Hospital - Near Miss 1 Vehicle Damage 3 Formal Investigation - Insect Stings - WorkSafe Investigation - Other -

Health and Wellbeing

Health Monitoring Assessments 15 Workstation Assessments 8 Baseline Monitoring 5

Wellness Initiatives Return to work plan Steptember 40 officers participated, – Non work related 1 raised $1,762.80 for Cerebral Palsy

67 Executive, Audit & Risk Committee - Financial and Operational Report

Health and Safety Objectives Update

Health & Safety Committee Meetings 1 Hazard reviews completed 12 Workers Committee meetings 1

Evacuation practice Policies - due for review:

Completed June 2018 Safe Driving Policy introduced

WSMP Status: Tertiary 2018 Wellness Plan developed Self-Audit – signed off December 2017

2018/2019 Health and Safety plan Health and Safety training days 11 developed

68 Executive, Audit & Risk Committee - Quarterly Operational Report - September 2018

Agenda Memorandum

Date 23 October 2018

Memorandum to Chairperson and Members Executive, Audit and Risk Committee

Subject: Quarterly Operational Report – September 2018

Prepared by: M J Nield, Director-Corporate Services

Approved by: B G Chamberlain, Chief Executive

Document: 2140179

Purpose The purpose of this memorandum is to receive and consider the Council’s Quarterly Operational Report (QOR) for the quarter ended 30 September 2018.

Recommendation That the Taranaki Regional Council: 1. receives and adopts the Quarterly Operational Report for the quarter ended 30 September 2018.

Background At the 3 August 2015 Executive Committee meeting, a proposed Operational Performance Reporting Framework was considered and adopted. As part of this framework, a QOR was to be introduced. The purpose of a Quarterly Operational Report (QOR) is to present a snapshot of the Council progressing through the delivery of the programme of activities agreed to in that year’s annual plan or long-term plan. It is designed to give a feel for how the Council is progressing and the forecast for the rest of the year.

Discussion The first 2018/2019 QOR has been developed and is presented for the Council’s consideration and adoption.

This report covers the first quarter of the 2018/2019 year and reports upon the achievement of the approved programme of work for 2018/2019 as adopted in the 2018/2028 Long-Term Plan. The focus of the Report is on operational performance. Financial performance will continue to be reported upon on a monthly basis through the six-weekly Executive, Audit and Risk Committee meetings.

69 Executive, Audit & Risk Committee - Quarterly Operational Report - September 2018

The Report is structured on the format of the performance management framework within the 2018/2028 Long-Term Plan. Reporting is based upon each activity within the six groups of activities. The following is included:  The objective for that activity  Commentary/Highlights – a high-level overview of how that activity is progressing and any indications for future performance. Case studies and/or matters of interest may also be included in this section.  Outputs/Key performance indicators – these are the annual plan/long-term plan measures for the year together with actual performance to date. “NF” (non-financial status) is the performance year to date and “E” (expected future status) is the forecast for the rest of the year. The colours are as defined below.  Scoreboard – Outputs/Key performance indicators – this is a graphical representation of how performance is progressing and how it is forecast to progress for the rest of the year. The key is:

o green – performance is on target for the year or is forecast to remain on target for the year o orange – performance to date is at risk of not achieving the target or there is a risk that the year end performance may not be achieved o red – performance to date has not achieved the target or the performance for the rest of the year is unlikely to achieve the target o grey – the performance measure has been delayed o black – reporting on the performance measure has not been updated or the forecast for the rest of the year has not been updated.  Further explanation of all performance that is not “on target” is provided.

For the quarter ended 30 September 2018, the QOR shows that, across the range of the Council’s activities, the Council is making good progress on the adopted works programme. There are no new particular areas of concern that need to be considered by the Council. This level of performance is forecast to continue throughout the rest of 2018/2019.

Except as noted below the Council is achieving all the measures and targets established in the 2018/2028 Long-Term Plan.

The following performance measures are noted as being orange. That is, performance to date is at risk of not achieving the target or there is a risk that the year end performance may not be achieved:

Consent processing and administration: The pre-hearing success rate may be impacted upon by the Mt Messenger consent process.

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The following performance measures are noted as being red. That is, performance to date has not achieved the target or the performance for the rest of the year is unlikely to achieve the target:

Nil.

Legal considerations This memorandum and the associated recommendations comply with the appropriate statutory requirements imposed upon the Council.

Appendices/Attachments Document 2140028: September 2018 Quarterly Operational Report

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SEPTEMBER 2018 QUARTERLY

OPERATIONAL REPORT

TARANAKI REGIONAL COUNCIL Document: 2140028

www.trc.govt.nz

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Table of contents

Executive summary...... 1 Introduction ...... 2 Resource management ...... 3 Resource management planning ...... 3 Consent processing and administration ...... 5 Compliance monitoring programmes ...... 6 Pollution incidents and response ...... 8 State of the environment monitoring ...... 9 Resource investigations and projects ...... 11 Sustainable land management plans and plant supply programme ...... 13 Enhancement grants ...... 15 Biosecurity and biodiversity ...... 16 Biosecurity and biodiversity planning ...... 16 Biosecurity/pest management ...... 17 Biodiversity ...... 19 Transport ...... 21 Regional land transport planning ...... 21 Passenger transport ...... 22 Harbour management ...... 24 Hazard management ...... 25 Civil defence emergency management ...... 25 Flood management and general river control ...... 27 River control schemes ...... 29 Recreation, culture and heritage ...... 30 Regional gardens...... 30 Puke Ariki ...... 32 Yarrow Stadium ...... 33 Regional representation, advocacy and investment management ...... 34 Investment management ...... 34 Community engagement...... 36 Advocacy and response ...... 37 Governance ...... 38

ISSN 2463-4808 Document 2140028

QUARTERLY OPERATIONAL REPORT – SEPTEMBER 2018 I

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Executive summary

This is the Quarterly Operational Report (QOR) for the three months ended 30 September 2018. The purpose of a QOR is to present a snapshot of the Council progressing through the delivery of the programme of activities agreed to in that year’s annual plan or long-term plan. It is designed to give a feel for how the Council is progressing and the forecast for the rest of the year.

This QOR presents the achievement of the programmes of work established by the Council for 2018/2019 in the 2018/2028 Long-Term Plan.

Except as noted below the Council is achieving all the measures and targets established for 2018/2019 in the 2018/2028 Long- Term Plan.

The following performance measures are noted as being orange. That is, performance to date is at risk of not achieving the target or there is a risk that the year-end performance may not be achieved:

 Consent processing and administration: The pre-hearing success rate may be impacted upon by the Mt Messenger consent process.

The following performance measures are noted as being red. That is, performance to date has not achieved the target or the performance for the rest of the year is unlikely to achieve the target:

 Nil.

QUARTERLY OPERATIONAL REPORT – SEPTEMBER 2018 1

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Introduction

The purpose of a Quarterly Operational Report (QOR) is to present a snapshot of the Council progressing through the delivery of the programme of activities agreed to in that year’s annual plan or long-term plan. It is designed to give a feel for how the Council is progressing and the forecast for the rest of the year.

The QOR is structured in the following manner for each activity within each one of the six groups of activity:  The objective for that activity  Commentary/Highlights – a high level overview of how that activity is progressing and any indications for future performance. Case studies and/or matters of interest may also be included in this section.  Outputs/Key performance indicators – these are the annual plan/long-term plan measures for the year together with actual performance to date. “NF” (non-financial status) is the performance year to date and “E” (expected future status) is the forecast for the rest of the year. The colours are as defined below.  Scoreboard – Outputs/Key performance indicators – this is a graphical representation of how performance is progressing and how it is forecast to progress for the rest of the year. The key is: o green – performance is on target for the year or is forecast to remain on target for the year o orange – performance to date is at risk of not achieving the target or there is a risk that the year-end performance may not be achieved o red – performance to date has not achieved the target or the performance for the rest of the year is unlikely to achieve the target o grey – the performance measure has been delayed o black – reporting on the performance measure has not been updated or the forecast for the rest of the year has not been updated.  Further explanation of all performance that is not “on target” is provided.

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Resource management

Resource management planning

Preparing, adopting and maintaining comprehensive and publicly considered policies, plans and strategies that will deliver to the Taranaki community, efficient and effective management of the Council’s functions and Taranaki’s natural and physical resources.

Commentary/Highlights

Proposed Coastal Plan (PCP) has been notified and 61 submissions were received. 24 further submissions were received. The focus has been on assessing the submissions and considering responses. A revised plan will be presented to the October Policy and Planning Committee for consideration prior to a pre-hearing process with submitters.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Complete preparation/full reviews and interim reviews of resource management policies, plans and strategies: Regional Policy Statement: Commence full review in The Regional Policy Statement for Taranaki (RPS) was made operative in 2019/2020 as part of the development of a January 2010. An interim review of the RPS has been completed, involving combined natural resource management plan. the preparation and targeted consultation of an Interim Review Report in 2017.

Regional Coastal Plan: Full review continued in The review is ongoing. A Proposed Coastal Plan and Section 32 evaluation 2018/2019 and will form part of the development of report have been prepared. They were publicly notified on 24 February. a combined natural resource management plan. The Schedule 1 Plan review process has commenced with the deadline for submissions being 27 April 2018. 61 submissions were received and a summary of submissions report prepared and publicly notified. Further submissions were called for and 24 further submissions were received. A draft Officers report and revised Plan have been completed for pre-hearing consultation.

Regional Air Quality Plan: Commence full review in The review of the Regional Air Quality Plan for Taranaki was completed and 2021/2022 as part of the development of a made operative on 25 July 2011. Draft interim review report of the efficiency combined natural resource management plan. and effectiveness of that Plan has been completed with the report adopted at the Policy and Planning meeting of 24 April 2018.

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Resource management

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Regional Fresh Water and Land Plan: Full review The review of the freshwater and land plans is ongoing. Preliminary continued in 2017/2018 and will form part of the consultation has commenced, including targeted consultation, on a development of a combined natural resource combined Draft Freshwater and Land Plan. Preparation of the Draft Section management plan. 32 Evaluation Report has also commenced, which has been informed by further work and studies, including a review of limits for environmental flows and the setting of draft regional targets for swimmability, and the effectiveness of riparian management. Consultants report on environmental flows have been received.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance

. On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Resource management

Consent processing and administration

Managing the Council's resource consenting responsibilities by efficiently and effectively providing advice on consenting obligations and processing applications.

Commentary/Highlights

The number of consents processed is similar to last year but there are also a number of new applications and consent renewals. The consenting process is becoming more streamlined with ongoing system improvements being made to manage consenting risks and to reduce costs (e.g. on-line resource consent applications). There have been no objections or appeals against consent decisions. The 100% consent processing time frame compliance has been maintained, meaning activities are not being delayed.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Provide accurate and timely information in response Timely and appropriate information has been provided for all information to all appropriate requests for assistance in requests. implementing Regional Plan rules.

Process and determine 100% of accepted resource All of the 11 resource consent applications processed during the month, and consent applications (approximately 400 consents the year to date (66) were completed in accordance with the statutory per annum), in compliance with the Resource procedures of the Act and the Council’s Resource Consents Procedures Management Act 1991, including compliance with documentation. statutory timeframes, and the Council’s Resource Consents Procedures document.

Successfully defend 100% of consent decisions No decisions have been appealed to the Environment Court appealed to the Environment Court.

Minimise the number and duration of resource Of decisions made this year, 100% (2/2) of applications receiving consent hearings by resolving, through the pre- submissions have been resolved by agreement between the parties and hearing process, at least 50% of submissions without the need for a hearing. received on resource consent applications.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

Consent processing and administration: The pre-hearing success rate may be impacted upon by the Mt Messenger consent process.

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Resource management

Compliance monitoring programmes

Undertaking effective and efficient monitoring of resource consents and, where necessary, undertaking successful enforcement action.

Commentary/Highlights

Consent holders are assessed each year on their environmental performance and on consent compliance. Overall ratings for consent holders in the 2017/2018 year were found to be 76% ‘high’ and 20% ‘good’. Reporting of the 2017/2018 programmes is now underway, with 13 reports competed to the end of September. A number of individual programmes had been merged for efficiency in 2017/2018, so while monitoring activities have increased overall, the number of programmes shows a reduction. There are additional programmes for hydrocarbon exploration and development activities. With the continuing downturn in the oil and gas exploration and production sector, it is likely that the number of compliance programmes and reports for this sector will remain at subdued levels. The dairy farm effluent system non-compliance rate in 2017/2018 was at a level slightly higher than the previous year, due to a wetter season, and reflected the need to maintain oxidation pond systems. Appropriate enforcement action has been undertaken in response to non-compliance.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

100% of individual compliance monitoring The implementation of 118 individual compliance monitoring programmes programmes for all major consents designed, for the 2018/2019 monitoring period is underway. The number of implemented and publicly reported upon programmes has reduced as a number have been combined to improve (approximately 120 individual compliance efficiency. Overall the level of compliance monitoring on tailored monitoring monitoring programmes per annum) within the programmes has remained static. 120 individual scheduled compliance negotiated budgets and completed within nine programmes were designed and implemented in the 2017/2018 year, the months of the end of the monitoring period. majority of which are reported on annually (during 2018/2019). By the end of August 2018, nine annual programmes in nine reports were published. Three hydraulic fracturing and one wellsite reports were also completed.

Implement and report on 100% of Within each compliance monitoring annual report, recommendations from recommendations arising from prior year’s previous reports are set out and their implementation, via monitoring monitoring of resource consents subject to an programme design and consent reviews, is reported upon. Implementation individual compliance monitoring programme. of every recommendation is reported within the relevant report.

Implement annual programmes for 100% of 37 inspections of minor industrial operations have been completed. These resource consents for agricultural discharges and inspections are to ensure good environmental practices are being achieved. 90% of minor industries not otherwise subject to an 221 annual dairy inspections have been completed. individual compliance monitoring programme (approximately 3,300 inspections per annum).

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Resource management

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Resource management

Pollution incidents and response

Responding effectively to pollution incidents, reducing the occurrence and effects of pollution and other unauthorised incidents and, where necessary, undertaking successful enforcement action.

Commentary/Highlights

The number of incidents was about the same as this quarter last year. Implemented the Enforcement Policy and successfully used a wide range of enforcement tools. There have been no significant marine oil spills that required actioning the Taranaki Regional Oil Spill Response Plan.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Respond to all consent non-compliance and During compliance monitoring, 54 non-compliance with resource consent implement appropriate advisory and enforcement conditions were identified. Issued 15 fourteen day letters, 20 abatement actions to require 100% compliance with resource notices and 9 infringement notices. One prosecution has been initiated as a consents, regional plans and/or national result of consent non-compliance. environmental standards.

Respond to 100% of pollution and other complaints Responded to all 109 reported incidents (100%) within the required (generally within fours hours of receipt) and where timeframe. Instigated control and clean-up where required. Issued 10 appropriate instigate control, clean up and fourteen day letters, 19 abatement notices and 6 infringement notices. One enforcement procedures, where reasonable and prosecution has been initiated as a result of unauthorised incidents. appropriate, and publicly report on all environmental incidents.

Administer and implement the Taranaki Regional Oil Administered the Tier II Taranaki Regional Oil Spill Response Plan in Spill Response Plan as agreed with Maritime New accordance with the programme agreed with Maritime New Zealand. No Zealand including responding to 100% of oil spills. minor marine oil spills have occurred that warranted actioning the Plan.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Resource management

State of the environment monitoring

Monitoring the state of the environment in Taranaki to enable periodic evaluation of the state of and trends in environmental quality and of the effects of the implementation of the Council’s policies and plans.

Commentary/Highlights

Implementation of the suite of state of the environment (SEM) programmes (over 50) was delivered in 2017/2018 as scheduled. Reports on the state of and trends in the ecological quality of the region's fresh water for the 2016/2017 year and for soil quality (5 yearly survey) have been published, and other reports are in preparation. Support continues for the regional councils' environmental data LAWA website and engagement in developing the national EMaR (environmental monitoring and reporting) programmes alongside other regional councils and the Ministry for the Environment (particularly freshwater, air quality, macroinvertebrates, and land use/land cover).

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Implement and report on 100% of the Council’s Implementing 100% of the state of the environment monitoring state of the environment monitoring programmes programmes, in accordance with the programmes prepared for 2017/2018. comprising monitoring of surface fresh water quantity, levels and flows, fresh water quality,

groundwater quantity and quality, coastal waters,

biodiversity, air quality and land use sustainability using recognized and reputable methods of data collection, analysis and reporting in accordance with the Council’s State of the Environment Monitoring Procedures document and State of the Environment Monitoring Programmes.

Monitor, review and where appropriate, further State of the environment monitoring is being delivered as scheduled. The develop existing programmes by 30 June of each periphyton programme has been extended in terms of number of sites and year. frequency. Additional sites for physical/chemical monitoring have been established and are being monitored. Coastal rocky foreshore ecology, Lake Rotorangi, and marine and freshwater monitoring programmes have been reported during 2017/2018. Soft shore marine and shellfish programmes are being scoped. Further programmes may be required to address the amendments made to the NPS for Freshwater.

Prepare and publish the five-yearly state of the The five-yearly state of the environment report, Taranaki as one - Taranaki environment report. The next report is due in 2020. Tangata tu Tahi, was published in July 2015. The next report due in 2020. Annual freshwater quality report cards have been published.

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Resource management

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Maintain all quality assurance programmes and All quality assurance programmes and information databases for information databases for hydrometric, air quality, hydrometric, air quality, physicochemical freshwater, terrestrial biodiversity, physicochemical freshwater, terrestrial biodiversity, fresh water biological and marine biological data, are being maintained. The fresh water biological and marine biological data. Council's contract laboratory maintains International Accreditation New IANZ registration for chemical analysis maintained. Zealand accreditation for the majority of tests undertaken on behalf of the Council.

Maintain public access to on-line live regional data Live on-line data is being maintained and reported for 37 hydrology sites, 28 on hydrology, meteorology, soil moisture and meteorology sites, 11 soil moisture sites, 16 freshwater sites, and 13 marine bathing beach water quality. Live data reported on bathing beach water quality sites. the Taranaki Regional Council’s website.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Resource management

Resource investigations and projects

Providing relevant research information for resource management purposes.

Commentary/Highlights

Various activities continuing during 2018/2019 include exploring research and funding opportunities relevant to regional council activities in conjunction with Crown Research Institutes (CRIs), taking into account the MBIE research 2018 and 2019 bidding processes for environmental research funding, advice/input on allocation of CRI core funding (Strategic Science investment funds), and with several of the National Science Challenges- 'Our Land and Water' (enduring primary sector productivity and optimisation), 'Resilience Challenge' (natural hazards, especially weather, earthquake, volcanic, Matauranga Maori science, and coastal), 'Sustainable Seas', 'Deep South' (climate change drivers and effects), and 'Our Biological Heritage' (supporting biodiversity and biosecurity). Support studies into the effects of cadmium and fluoride on soil health and productivity, crop integrity, and animal health continued. Interim research reports have been received. Collaboration continues with Dairy Trust Taranaki in studying water usage and soil condition under varying farm management regimes on farms in Taranaki. Engagement in the MBIE-funded 'Curious minds' community-based science programme continues, with a number of individual projects either already underway or in development.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Over the period of the 2018/2028 Long-Term Plan the Council intends to undertake a range of resource investigations and applied research projects. These are normally undertaken in partnership with science providers, other councils or resource users but may also include a range of other parties, including iwi, as potential partners for Council resource investigations and projects. Such projects evolve over time. Specifically for 2018/2019, the Council intends to: Continue to support the “best practice dairying Continuing to monitor ecological and physicochemical water quality catchments” study in the Waiokura Stream parameters within the Waiokura catchment in the 2018/2019 year. catchment, and evaluation of data arising from this project.

Support studies into the behaviour and Participated as a member of the Cadmium Working Group. Studies bioavailability of cadmium and other contaminants supported provide an assessment of the risks to agriculture and will provide in agricultural soils and fertilizer. evidence for effective soil management options to mitigate plant uptake. Studies are underway on cadmium accumulation in a range of forage and market garden crops grown in various soils; levels of Cd within agriculture and food chain systems; the significant of Cd within primary production sectors; options for management of soil systems and fodder pasture to control uptake; field studies into concentrations of cadmium in horticulture produce; soil emendation studies (lime, compost) to control cadmium uptake; characterisation of cadmium binding in a variety of soil types; cadmium effects upon soil rhizobia and nitrogen availability; and cadmium effects upon livestock in relation to soil and pasture cadmium. The group has undertaken a strategic review of its purpose and delivery. A LandCare soils study shows no clear trend for cadmium levels in Taranaki soils.

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Resource management

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Investigate the benefits of riparian management for Opportunities to research and/or report the consequences of riparian ecological health. management for in-stream and terrestrial ecological health will be explored during 2018/2019, including referencing this work in policy advocacy and development. SEM monitoring programmes for water quality, ecological health, and periphyton proliferation are continuing

Engagement in “Envirolink” and other science Envirolink projects encompassing molecular (DNA) detection of fish species research opportunities, to enhance knowledge base in freshwater, satellite-based sensing of coastal water quality, and new for policy development and implementation. technology for determining flows in weedy lowland streams have been Projects with clear relevance and benefit to Taranaki approved by MBIE for funding in 2018/2019. There is on-going engagement to be adopted through “Envirolink” and other with MBIE's National Science Challenges, to pursue projects of benefit to the funding opportunities. Taranaki region- specifically the 'Resilience Challenge' (eg Mt Taranaki volcanic effects on agriculture, petroleum/petrochemical industry, lifelines resilience, effective civil defence amongst iwi), 'Bioheritage', 'Sustainable Seas' (eg de-commissioning offshore installations; sediment movement and effects), and 'Our Land and Water' challenges. Preparations are in hand for a regional councils' research priorities workshop (October 2018). Key contacts with PCE, PMCSA, departmental science advisors, and MBIE have been maintained. A review of research funding in NZ, with opportunities and constraints for councils, is being prepared.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Resource management

Sustainable land management plans and plant supply programme

Promoting sustainable land and riparian management by providing land management advice and information on an individual property basis and through advocacy and facilitation.

Commentary/Highlights

The commissioning and mapping of riparian plans is the focus for this quarter before monitoring gets into full swing after calving. In the hill country, STRESS works are being audited for the end of the October reporting period. A new 4-year application to the hill country erosion fund will be submitted at the end of October. Mobile technology for hill country monitoring is near completion but the riparian application is still being built to undertake riparian plan audits in the field. A 2 year contract is in place for “Transforming Taranaki”, its application with the Ministry for the Environment’s Freshwater Improvement Fund. A scoping document has been completed which will enable a request for proposal to be let to create a digital “tree planting decision support” web portal. The portal will house, or link, to information to help landowners make informed decisions about tree planting.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Planning services. Provide property planning For the month of September, no plans have been prepared. Year to date, no services to landholders. Prepare plans covering comprehensive farm plans and no agroforestry plans have been prepared. 1,000 hectares of land use capability mapping in the Plans cover 67% or 205,425 hectares of the land in private ownership in the hill country and 100 riparian plans in the intensive hill country. For the month of September, no new riparian plans and no add- water management zone. ons were prepared. Two riparian plans (1 riparian plan and 1 add-ons) have been completed for the year.

Monitoring and reporting. Liaise with and monitor For the year to date, there have been 1,780 liaisons (320 observations and approximately 2,600 riparian plans and 100 farm 1,460 events). In total, to the end of June, 4,752 km of new fencing has plans and report on the implementation of the been erected resulting in 85.7% of waterways protected by fencing. Since 1 recommended fencing and planting. July 2017, 2,787 km of new planting has been established, resulting in 71.7% of watwerways having adequate vegetation where recommended.

Provision of advice. When requested, provide Until the end of September 2018, responded to 28 requests all within the advice on sustainable land management practices required timeframe. within ten working days.

Provide, on a cost-recovery basis, approximately To the end of September 2018, 198,868 native plants have been ordered for 450,000 suitable plants for land stabilisation, soil the year. conservation and riparian planting programmes.

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Resource management

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Implement the South Taranaki and Regional Erosion For the October reporting period, 2.9 kilometres of fencing to protect 5.8 Support Soil Conservation Programme including an hectares of reversion and retirement, and 40.1 hectares of new forestry is estimated 4,000 poplar poles, 50 ha of protection projected. For the May reporting period, 7 kilometres of fencing to protect forestry and construction of 22 km of retirement 39 hectares of reversion and retirement and 6 ha of forestry is projected. fencing to retire 400 ha of marginal land.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Resource management

Enhancement grants

Promoting the protection of the environment through the provision of targeted enhancement grants.

Commentary/Highlights

Enhancement grants provide funding for a range of programmes including key native ecosystems, wetland protection and STRESS. Funding is provided for projects as outlined in plans that are agreed to with the landowner. This funding also supports the Taranaki Biodiversity Trust “Wild for Taranaki”.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Implement a programme using environmental Land Management: $34,000 has been allocated to projects with $9,330 paid enhancement grants for the protection of habitats of out in grants. Biodiversity $150,000 Bio-ops KNE funding is fully allocated, regional significance. $27,500 Bio-ops has been paid out. These projects include support for biodiversity plans, regionally significant wetland projects and "Wild for Taranaki" projects.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Biosecurity and biodiversity

Biosecurity and biodiversity planning

Commentary/Highlights

Pest management plan and strategy, delivering efficient and effective management of biosecurity functions, are in place in accordance with statutory requirements. No further work was required this quarter.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Undertake an interim review of the Pest A review of the strategies was completed and both documents were Management Plan for Taranaki in 2022/2023 and a adopted in February 2018 ten-year full review in 2027/2028.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Biosecurity and biodiversity

Biosecurity/pest management

Controlling pest plants and animals to minimise their adverse effects on biodiversity, primary production and the regional economy and environment.

Commentary/Highlights

The self-help possum control programme’s main focus has been on landowners in the East zone undertaking maintenance to ensure they meet plan requirements. Public enquiries for a range of pest plant and pest animals continue to be responded to. Control of Old Man’s Beard within the Waingongoro catchment continues as contractors complete the initial phase of part 2. The pest plant inspection programme slows over the winter period and it is expected that this will increase as the season moves into more favourable conditions.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Dependent upon the review of the Pest Management Plan for Taranaki, undertake operational programmes through both the Pest Management Plan for Taranaki: and the Pest Management Strategy for Taranaki, including: Eradication of selected pest plants. Control of selected “eradication” pest plants will commence over the coming months. Staff will continue to search and locate new sites that will require control over time.

Inspection, monitoring and where necessary, No possum monitoring has been undertaken as yet as first lot of trap catch enforcement of sustained control pest programmes. is required in October. Undertook 102 property inspections this quarter for pest plants. With the onset of spring the pest plant infestations are likely to increase over the coming months. Issued 9 Notices of Direction for sustained control pest programmes this quarter. 4 for possums and 5 for plants.

Raise public awareness of and respond to enquiries Provided advice and where appropriate undertake control action for all related to pest issues. notifications. This quarter 28 enquiries for pest plants were received, 12 of which were strategy/plan pests. Received 61 enquiries for pest animals of which 22 were strategy/plan pests.

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Biosecurity and bidiversity

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Biosecurity and biodiversity

Biodiversity

Maintaining and enhancing the indigenous biodiversity of the Taranaki region and managing pests to limit the impact on production and environmental values, including working alongside landowners and other groups and agencies in accordance with the Council's policies and its biodiversity and biosecurity strategies.

Commentary/Highlights

Work with landowners to prepare biodiversity plans that protect the values within their Key Native Ecosystems (KNE) continues. Work on implementing existing plans continues, including fencing, planting, pest plant and animal control, provision of education and advice. Work continues on actively looking for new sites that meet the Key Native Ecosystem criteria, with particular focus on areas that are close to existing sites, to provide corridors of protection across the landscape. On 30 May 2018, the Conservation Minister launched the ‘Towards Predator-Free Taranaki’ project. This is the first large-scale project with the long-term aim of removing introduced predators from a region. The project is supported by the Council, Predator Free 2050 Ltd - the company set up by the Government to help New Zealand achieve its predator-free 2050 goals - and by the regions communities and landowners through active participation.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Continue to assess ecosystem sites within the region At June 2018 the inventory of KNE's identified 252 sites. Work is currently on a voluntary basis, in order to identify further key progressing on the identification of a further four (4) sites. native ecosystems.

Prepare at least 20 biodiversity plans per annum for It is planned to prepare 24 new biodiversity plans during 2018/2019. To date properties containing key native ecosystems (KNE). seven (7) new plans have been completed. Work is currently progressing on further plans.

Initiate and support implementation of work Annual work plans have been prepared for 122 KNE's with a Biodiversity programmes on all KNE’s with a biodiversity plan. Plan. Pest animal control tends to span the whole year, pest plant control and fencing are typically carried out during the summer months and plantings during winter/spring.

Undertake a landscape scale predator eradication Three different phases of work have begun around the mountain, starting in and management programme across the Taranaki the New Plymouth area, Oakura, and the Kaitake ranges. These phases ring plain, including urban communities. The represent the three different elements to the project: urban trapping, rural programme will target possums (building on the control, and zero possums. Monitoring work and site-led work has also successful possum self-help and urban begun, and officers have had input into several technological innovations. programmes), mustelids (ferrets, stoats & weasels), rats and feral cats. Years 1-3 will focus on the

Waiwhakaiho catchment, around Mt Taranaki and

urban areas across the region starting in New Plymouth. Different control techniques will be trialled in both the rural and urban landscape, including the eradication of possums.

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Biosecurity and bidiversity

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Continue to assess ecosystem sites within the region At June 2018 252 KNE sites had been identified and registered in the KNE on a voluntary basis, in order to identify further key Inventory. Work is currently progressing on the identification of a further native ecosystems. four (4) sites.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

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Transport

Regional land transport planning

Contributing to an effective, efficient and safe land transport system in the public interest.

Commentary/Highlights

With the Regional Land Transport Plan (RLTP) 2015-21 mid-term review complete, planning activity moves to advocacy on a number of important transport projects such as Mt Messenger by-pass, the Awakino tunnel by-pass, the sealing of SH43 and the Waitara to Bell Block safety works. Support continues to be provided to the Regional Transport Committee and the State Highway 3 Working Party as required; as does ongoing liaison with stakeholders and responses to requests for submissions.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Complete preparation/full reviews and interim reviews of the transport policies, plans and strategies: Review, monitor and make adjustments to the Nine variations (December 2015, June & September 2016, March, May & regional land transport plan, as required, in November 2017, March 2018 and June 2018) have been required to the accordance with statutory requirements. Regional Land Transport Plan (RLTP).

Complete a full review of the Regional Land Review to be carried out. Transport Plan 2021/2022-2026/2027 during 2020/2021.

Complete a mid-term review of the Regional Land Review to be carried out. Transport Plan 2021/2022-2026/2027 during 2023/2024.

Review and make adjustments to the Transport Review to be carried out. Activity Procurement Strategy, as required, in accordance with statutory requirements.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Transport

Passenger transport

Promoting the provision of community public transport in Taranaki and assist the transport needs of the transport disadvantaged.

Commentary/Highlights

Passenger services continue to be provided throughout the region with ongoing monitoring of farebox and commerciality ratio. Total patronage across the services was up 3.8% on the corresponding period. This excludes three Southlink services as the September data was not available at reporting time. The Citylink service recorded patronage growth of 5.1%. The Connector service recorded patronage decrease of 15.4%. Total Mobility trips increased during the period, up 16.2%. Ironside trips were down 0.5%. A highlight was World Car Free Day. This is an annual international event held on 22 September, which this year fell on a Saturday. We offered free travel to all Southlink passengers on the regular day of service in the week leading up to the event. For the Connector service, the event was celebrated on Friday 21 September, with the Citylink service celebrated on Friday 21 September and Saturday 22 September, due to the limited Saturday service. The event was successful. Patronage on the Opunake to New Plymouth service was 20 which is average for the service, Connector patronage was 133 up 24% on the previous Friday and Citylink patronage was 1,655, an increase of 22% on the previous week.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Provide Total Mobility subsidy assistance to Provided Total Mobility Scheme services to the targeted areas. Trips YTD are qualifying persons through the New Zealand 12,482, an increase of 16.2% (2017/2018 - 44,098). An additional 1,896 trips Transport Agency supported Total Mobility Scheme. were made by the Ironside Vehicle Society, a decrease of 0.5% (2017/2018 - 6,910).

Operate public transport services in the New Passenger transport services in the New Plymouth district and regional Plymouth district and regional Taranaki consistent Taranaki were operated consistent with the Regional Public Transport Plan. with the Regional Public Transport Plan subject to funding approval from the New Zealand Transport

Agency and the availability of local share funding.

Monitor the region’s bus service contracts including Patronage growth on the region's bus services YTD is 3.8% (2017/2018 - patronage growth and fare box recovery. Monitor 1.5%). This figure excludes three Southlink services as data is not available at the commerciality ratio of the region's public time of reporting. Farebox recovery YTD is 44.9% (2017/2018 - 38.6%). transport services and publish the ratio annually. Commerciality ratio YTD is 46.4% (2017/2018 - 40%). These two figure have not been updated for September as the data is not available at time of reporting.

Provide financial assistance to the Ironside Vehicle Financial assistance to the Ironside Vehicle Society in 2018/2019 is set at a Society subject to funding eligibility criteria being base level of $65,000. met.

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Transport

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Transport

Harbour management

Promoting safe navigation for all users of the waters of Port Taranaki.

Commentary/Highlights

There were no significant navigation and safety incidents at the port and there was compliance with the required codes and management systems. A near miss occurred with Blyde Wharf and a vessel under Port Taranaki Ltd pilotage, which is being investigated by both the port and Maritime New Zealand. The Port Taranaki Harbour Safety Management System has been reviewed with Port Taranaki Ltd as part of a pre-audit process which is due in November.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Provide harbourmaster and harbour warden services To date, no breaches have been reported. The new Harboumaster is making for Port Taranaki and implement the Navigation positive changes. The Harbour Safety Management System is being Bylaw for Port Taranaki and Approaches. No reviewed. Senior staff changes at the Port may impact this process. significant breaches of the requirements of the New Zealand Port and Maritime Safety Code, including

the Port Taranaki Harbour Safety Management

System.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Hazard management

Civil defence emergency management

Supporting, within the Taranaki community and Iwi, an integrated comprehensive emergency management system including hazard awareness, reducing risk, maintaining readiness, and providing response and recovery capacity and capabilities.

Commentary/Highlights

The Taranaki Civil Defence Emergency Management (CDEM) Group's review of the effectiveness of and areas for enhancement of CDEM in Taranaki identified key areas for development: re-structuring and expansion of the Taranaki Emergency Management Office, to support and mentor district councils in delivery of CDEM functions at the local level (including risk identification and reduction, community readiness and resilience, and response and recovery capacity and capability) and re- structuring of existing governance and administrative delivery of CDEM activities. The Group has identified new constituting arrangements, including new funding agreements, alternative delivery of administrative functions, and the CDEM regional management role for the Emergency Management Office. The new Group Plan, adopted in June 2018, reflects the new arrangements and agreements. Related work projects being implemented include identification and implementation of territorial authority responsibilities and functions, a stocktake of hazards and risks research undertaken for the Taranaki region, a stocktake of regional readiness and risk reduction, risk and hazard identification workshops, and adoption of an annual work plan incorporating governance, risk identification and reduction, organisational resilience, and capacity and capability enhancement.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Support the Emergency Management office to The Group has adopted an annual business plan and budget for 2018/2019. prepare, implement, monitor and report upon the Development of a service level agreement between NPDC as service Taranaki Civil Defence Emergency Management provider and TRC as administering authority is in hand. The 2018/2019 Annual Business Plan. Annual Business Plan for Taranaki Civil Defence and Emergency Management (CDEM) is to be reported to the TRC, the CEG, and the CDEMG Group. Six key activity areas have been identified in the Business Plan: (i) strong governance arrangement and accountability, including future work plans and administration of advisory groups, the Co-ordinating Executive Group (CEG) and the CDEM Group meetings. (ii) disaster risk identification and reduction, management, strengthening risk planning and integration; (iii) organisation resilience, focusing operational systems and protocols for emergency operations/coordination centres; (iv) community resilience through volunteer management protocols, public education, community resilience plans and a Group resilience strategy; (v) capability development through education and training courses; and (vi) response and recovery arrangements through appointment of local Controllers, Recovery Managers and CIMS function leads.

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99 Executive, Audit & Risk Committee - Quarterly Operational Report - September 2018

Hazard management

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Support the Emergency Management office to The new Group Plan was adopted on 19 June 2018. The statutory review of implement, monitor and report upon the operative the Plan is due in 2023. The new Group Plan is to be amended in due course Civil Defence Emergency Management Group Plan by incorporation of an additional section on strategic recovery. This work on for Taranaki, and draft, and notify the next Plan in strategy recovery arises from a new requirement under the CDEM Act. The accordance with the statutory review period. Annual Report was presented to the CEG and Group meetings in August- September. Related work projects arising from the new Group Plan are being implemented, including receipt and adoption of a review of TA responsibilities and functions, a stocktake of hazards and risks research undertaken for the Taranaki region, a stocktake of regional readiness and risk reduction, risk and hazard identification workshops, and a CDEM Group strategy, vision and priorities adopted.

Support the Emergency Management office to Work supporting New Plymouth, Stratford and South Taranaki District maintain, review, and as needs be, implement Councils, for the establishment of EOCs, continues. Delivery of training for effective response and recovery procedures to CDEM staff is occurring and future course sessions are scheduled. minimise harm or damage to people and property Appointment of Local Controllers and Local Recovery Managers were arising from emergency events. confirmed at the last Joint Committee meeting of the previous financial year. The CDEM Group is moving to local response and recovery delivery (via District Council Emergency Operations Centres), and regional coordination through the Taranaki Emergency Management Office (TEMO) and the regional Emergency Coordination Center. Specification and development of operational systems for use during response and recovery is underway and implemented. Emergency operations systems are being configured for the new operating model. A localised tornado in New Plymouth in August required a district level response.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Hazard management

Flood management and general river control

Providing accurate and timely flood warnings, providing flood control advice and undertaking minor works and associated actions (audit of regional plans and consent applications to ensure activities are undertaken without an increased risk of flooding and river erosion) to minimise and prevent damage by floods and river erosion.

Commentary/Highlights

Information from rainfall and river level monitoring systems was provided. Advice was provided to landowners on a range of river/stream flood control advance and drainage related matters.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Effectively monitor rainfall and river levels and issue Meteorological and hydrometric monitoring sites were maintained to high timely flood warnings. Maintain continuous level of operational standard, with no significant maintenance works monitoring systems (100% functional) and issue required. All incoming telemetry data is monitored continuously and timely warnings for all cases, where necessary, in responded to in accordance with the procedures for the monitoring of accordance with the Flood Event Standard severe weather and flood events. Twelve severe weather watch alerts and Operating Procedure (approximately 35 warnings five warnings have been received from MetService in the year to September. per annum). No flood warnings were issued over the same period.

Undertake minor emergency river and flood control No emergency works requiring Council funding have been required this works when necessary. quarter.

Respond to 100% of requests for drainage, river and Staff have provided advice, predominantly to farmers, on a range of flood control advice and assistance within ten requests for general advice on works in streams. working days.

Facilitate river control projects for the environmental The willow control programme continues, focusing on removal of willow in enhancement of the region’s waterways. riparian areas to improve flood flows and enhance riparian vegetation.

Resource management planners are given advice to Advice has been given on a range of matters regarding the interpretation of ensure regional plan rule and consent conditions will regional plan rules and to provide technical assistance during the processing not increase the risk of flooding or river erosion. of resource consent applications.

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Hazard management

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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102 Executive, Audit & Risk Committee - Quarterly Operational Report - September 2018

Hazard management

River control schemes

Managing and maintaining river control scheme works to accepted design standards to minimise and prevent damage by floods and river erosion.

Commentary/Highlights

All schemes (Lower Waiwhakaiho, Lower Waitara, Okato and Waitotara) have been maintained as per their respective asset management plans. A range of maintenance works have been occurring across the schemes including vegetation clearance within the flood channel and erosion control works. The Opunake flood control scheme works are complete.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Manage all flood and river control schemes across All schemes have been maintained as per their asset management plan: the region in accordance with asset management Waiwhakaiho Scheme - Weed willow removal upstream of Devon Rd. plans or management plans; including Lower Clearance of self-seeded wattle trees from Mangaone Stream channel Waiwhakaiho, Lower Waitara, Okato and Waitotara upstream of Katere Road. Riparian planting on the Mangaone Stream. Schemes. Waitara Scheme - rock riprap stabilisation around an outfall at Queen St. Waitotara Scheme - planting of willow poles to control erosion at strategic locations in Waitotara River. General – mowing of grassed area and stopbanks; general weed control.

Manage other minor river schemes to standards as No works were planned for this period. agreed with scheme participants.

Implement the rural component of an Opunake The rural component of the scheme has been completed and is functioning Flood Control Scheme. The rural component of the as per expected design performance. Scheme will divert floodwaters from the Hihiwera Stream to the Otahi Stream and the Waiaua River.

An urban component will be designed and

implemented by the South Taranaki District Council. The scheme is designed to protect Opunake from a 1% Annual Exceedance Probability (one-in-100- year) flooding event.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Recreation, culture and heritage

Regional gardens

Ensuring that Hollard Gardens, Tupare and Pukeiti are maintained and enhanced as regionally significant recreational and heritage amenities.

Commentary/Highlights

All gardens have been maintained to the standards in the respective Asset Management Plans. The main focus operationally has been garden projects: Tupare, a range of camellias and rhododendrons have been pruned and shaped. Hollard’s, remaining storm damage has been cleared and some replanting is completed, entrance area has been cleared ready for landscaping. Pukeiti, extensive pruning releasing and planting have been ongoing in a number of areas. At all gardens public events have been well attended and visitor numbers have increased.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Provide three regional gardens (Tupare, Hollard The gardens are now open all day every day for free general use by the Gardens and Pukeiti) for free general use by the regional community and visitors regional community. Tupare, Hollard Gardens and Pukeiti open to the public daily with unrestricted free

general access.

Encourage the increased use of the regional gardens Visitor numbers for the financial year ending July 2018: Pukeiti 82,887, by the community for recreational purposes and for Tupare 38,239 and Hollard Gardens 19,985. Events: Pukeiti 26, Tupare 40 specific events. and Hollard Gardens 61. Through the winter there have been a number of educational workshops, all well attended.

Continue implementing the Pukeiti asset The Lodge construction is all but finished except for the concreting, which management plans focusing on completing the will be finished when the weather improves. The construction of the Weka upgrade works in the Zone 1 Garden, the wetland is also all but complete with just the actual planting and signage to rhododendron collection in Zone 2 and recreational finish this project. Other projects include: planning and implementation of development opportunities in Zone 3. Priority tasks project works including the hard and soft landscaping around the Lodge, to be completed include: • completing the new tracks in Zone 1 as well as the engineering and drafting of the working landscaping and visitor facilities in the Garden Zone drawings for the Family Hut building and effluent system. The canopy walk 1 • continuing to enhance the rhododendron project is ready to go to market for proposals. The rhododendron collection collection (Zone 2) through implementing the Plant continues to expand with significant new plantings which are evident Collection Plan • continuing to develop and throughout the garden areas. As we move to the next stage of implement world class story-telling and development, new interpretation is being planned with a focus on predator interpretation throughout Pukeiti • developing a free Kaitake and historical information on the area. canopy walk linking Pukeiti with the rainforest • developing walking and cycling trails throughout the

rainforest and linking to the coast • developing

visitor facilities including a family hut, the Puke te whiti summit and enhancing various heritage and biodiversity sites.

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Recreation culture and heritage

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Continue implementing the Hollard Gardens asset The construction of the new workshop is complete, the shelter and management plans focusing on: • providing a new barbeque will be constructed early summer barbeque and shelter • extending education workshops in Bernie’s Home Garden by providing a

new single garage workshop • extending the culvert

to create more car parking.

Continue implementing the Tupare asset The cottage heating is installed. Interior upgrades have been planned and management plans focusing on: • upgrading the ready to progress. Cottage, including heating, lighting and access • continuing art work based on the arts and crafts

genre • investigating an upgrade of the tennis court

hospitality options.

Review and adopt asset management plans for Asset management plans for the three gardens have been completed and Tupare, Hollard Gardens and Pukeiti by 31 October adopted. The next review of the plans is scheduled for 2020/2021. 2020.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Recreation, culture and heritage

Puke Ariki

Maintaining an ongoing partnership with the Puke Ariki regional museum and library including the use of exhibitions, presentations and services within annual projects.

Commentary/Highlight

The relationship with Puke Ariki is progressing well. The projects for 2018/2019 (see below) have been agreed upon and are in the process of being delivered. The Permian Monsters: Life Before the Dinosaurs exhibition proved to be very popular and successful - this was part of the Council's 2017/2018 programme with Puke Ariki.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Maintain an ongoing partnership relationship with Quarterly partnership meetings are held with Puke Ariki. The three the Puke Ariki regional museum and library including 2018/2019 projects are: South Taranaki reef exhibition in Taranaki Naturally the ongoing use of display and presentation material Gallery ($120,000); Taranaki Naturally Gallery marketing campaign ($5,000); within an annual project. Aotea Utanganui Museum of South Taranaki. ($25,000).

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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106 Executive, Audit & Risk Committee - Quarterly Operational Report - September 2018

Recreation culture and heritage

Yarrow Stadium

Facilitating the continued maintenance and development of Yarrow Stadium.

Commentary/Highlights

The focus for the first part of this year was the recovery plan to get the Stadium operational for the Mitre10 Cup. Having achieved this, work has moved onto the development of options for repairing/reinstating the Stadium. It is expected that these options will be considered in the new year for inclusion into works programmes for 2019/2020.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Contract with New Plymouth District Council for the The Trust and the New Plymouth District Council have a management operation and management of Yarrow Stadium. agreement for the operation and management of Yarrow Stadium. New Plymouth District Council are operating and managing Yarrow Stadium under this agreement.

Undertake asset management planning for the A joint committee of the Council and the New Plymouth District Council future maintenance, enhancement and development have developed and adopted a strategic plan and associated 2015/2025 of Yarrow Stadium. asset management plan for the long-term development of Yarrow Stadium. Asset management planning for 2018/2028 is on hold while the solutions for the results of earthquake assessments on the two Stands are identified. The focus for the first part of this year was the recovery plan to get the Stadium operational for the Mitre10 Cup. Having achieved this, work has moved onto the development of options for repairing/reinstating the Stadium.

Provide regional funding for the future maintenance, Regional funding is provided to the Taranaki Stadium Trust for long-term enhancement and development of Yarrow Stadium. maintenance and development at Yarrow Stadium. The 2018/2019 funding is being used for the recovery programme.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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107 Executive, Audit & Risk Committee - Quarterly Operational Report - September 2018

Regional representation, advocacy and investment management

Investment management

Ensuring that the equity, property and treasury investments owned by the Council are efficiently managed.

Commentary/Highlights

Investment management activities are working well within defined policies and procedures. The annual general meeting of Port Taranaki Ltd has occurred with one director retiring and one director reappointed.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Consider Port Taranaki’s annual statement of Port Taranaki Ltd’s performance was reviewed when considering their corporate intent and monitor performance against 2017/2018 Annual Report on 18 September 2018. Performance against established targets. standards set in the statement of corporate intent is reported in the Council's annual report.

Appoint Directors at Port Taranaki Ltd’s annual Councillor Littlewood retired by rotation and was reappointed at the 20 general meeting and at other times as required. September 2018 Port Taranaki Ltd annual general meeting (AGM). Mr Roger Taylor resigned at the AGM and his position was not filled.

Undertake on-going liaison with port company Regular formal and informal briefings and discussions occurred between the directors and management. Board and the Council throughout 2018/2019.

Manage and, where appropriate, divest leasehold Leasehold land is managed in accordance with the Council's Investment land in accordance with the Investment Policy. Policy. A 5% return from leasehold land rentals is expected in 2018/2019. No properties have been divested.

Manage and maximise returns from treasury All treasury investments are in accordance with the Council’s Investment investments in accordance with the Investment Policy. Policy.

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108 Executive, Audit & Risk Committee - Quarterly Operational Report - September 2018

Regional representation, advocacy and investment management

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Regional representation, advocacy and investment management

Community engagement

Promoting community awareness, understanding and involvement with the Council's functions and activities, together with demonstrating the value and contribution of the work of the Council to the region.

Commentary/Highlights

The implementation of the digital and social media strategy is the primary focus and good progress is being made on all fronts. A lot of time and energy has gone into supporting the Towards Predator-Free Taranaki project. The web design and redevelopment project is progressing well with Stage 3 going live in the first quarter of 2018/2019. Work is progressing on using live environmental data for a surfing app. The transport app has been delayed by the NZTA. Preparations are underway for the 2018 Environmental Awards. The environmental education programme continues to be busy and successful. The Enviroschools programme has been built into existing programmes.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Engage with the community across a range of A range of communications activities have been undertaken to support channels including print and digital publications, programmes. The website is being maintained and enhanced (Phase 3 news media, websites, mobile and social media. development is almost complete), and social media activity continues to Produce five bi-monthly editions of the Council grow with 3,662 followers on Facebook. One issue of Talking Taranaki newsletter and publish through print and digital newsletter has been published to date. channels.

Implement the environmental awards programme. Selection of environmental awards has been made to be presented in late October.

Provide an on-going environmental education There have been 62 education sessions/field trips involving 2,006 students programme for school children and the wider (including the Gardens' School Programmes), 16 planning meetings, 3 community including class visits, field trips, the professional development sessions and 1 issue of the SITE newsletter. The Pukeiti Rainforest School and support for community Enviroschools Programme is being is being coordinated by the Council's projects. Enviroschools Regional Coordinator. There are 22 schools and 14 kindergartens in the Enviroschools programme in Taranaki.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Regional representation, advocacy and investment management

Advocacy and response

Advocating and responding, on behalf of the Taranaki community, to initiatives proposed by other agencies, when those initiatives affect the statutory responsibilities of the Council or relate to matters of regional significance, which are of interest or concern to the people of Taranaki.

Commentary/Highlights

Submissions are prepared and approved by the Council prior to being submitted. The Council continues to be involved in various forums associated with policy development, advocacy, liaison and response to a range of national initiatives.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Assess the implications of policy initiatives proposed To date, thirteen (13) submissions have been made. by other agencies including discussion documents, proposed policies, strategies, plans and draft

legislation, and respond within required timeframes

on approximately 20 occasions per year.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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Regional representation, advocacy and investment management

Governance

Facilitating public representation by the Council and its committees in accordance with statutory requirements.

Commentary/Highlights

The Council remains on target with all its statutory governance and engagement obligations. The 2017/2018 Annual Report was adopted on 18 September 2018. Work is finishing on the representation review and commencing on the 2019 elections. Initial work on the 2019/2020 Annual Plan has commenced.

Outputs/Key performance indications

PERFORMANCE MEASURE ACTUAL PERFORMANCE

Completion of statutory planning and reporting Statutory planning and reporting accountability documents have all been documents (Long-Term Plan, Annual Plans and prepared within statutory requirements and timeframes. The 2017/2018 Annual Reports) within statutory requirements. Annual Report was adopted on 18 September 2018. Work on the 2019/2020 Annual Plan has commenced.

Preparation of agendas and minutes and the All meetings are conducted in accordance with adopted Standing Orders conduct of meetings in accordance with Standing and the Local Government Official Information and Meetings Act 1987. Orders and the Local Government Official Agendas are publicly available at least 48 hours before each meeting and Information and Meetings Act 1987. minutes are prepared and adopted for all meetings.

Conduct of triennial local authority elections without The 2016 local authority elections were held in October 2016. The elections any need for re-conduct of the elections as a result were successfully completed with no appeals or judicial reviews held. The of judicial review. next local authority elections are in October 2019.

Scoreboard – Outputs/Key performance indications

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

Explanation for key performance indications other than “On target”

N/A

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www.trc.govt.nz

113 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

Agenda Memorandum

Date 23 October 2018

Memorandum to Chairperson and Members Executive, Audit and Risk Committee

Subject: Taranaki Stadium Trust 2017/2018 Annual Report

Approved by: M J Nield, Director—Corporate Services

BG Chamberlain, Chief Executive

Document: 2126316

Purpose The purpose of this memorandum is to receive and consider the Taranaki Stadium Trust’s 2017/2018 Annual Report.

Recommendation That the Taranaki Regional Council: 1. receives the Taranaki Stadium Trust’s 2017/2018 Annual Report.

Background The Council took over control of the Taranaki Stadium Trust on 27 June 2013. As such, the Trust is a council-controlled organisation of the Council.

The purpose of the Trust is to promote the effective and efficient maintenance, development, management, operation and promotion of Yarrow Stadium as a community asset used for recreation, sporting and cultural activities for the benefit of the people of Taranaki, working in particular with the Taranaki Regional Council and the New Plymouth District Council.

Council-controlled organisations are required to produce and audited annual report within three months of the completion of each financial year.

Discussion The Taranaki Stadium Trust has prepared, and has had audited, its 2017/2018 Annual Report—refer attached.

114 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

District Council operates and funds the operations of Yarrow Stadium. The Taranaki Regional Council funds, via the Trust, the long-term maintenance and development of Yarrow Stadium.

This partnership for funding and operating/maintaining/developing assists in maintaining Yarrow Stadium as a premier regional sports and events venue.

Yarrow Stadium hosted an All Blacks test match against Argentina in September 2017. This was the operational highlight of 2017/2018.

The remainder of the year has been spent addressing issues arising from earthquake assessments of the stands that indicated that they are earthquake prone buildings. The East Stand has been assessed at 10% of new building standard (NBS) and the West Stand at 20% of NBS. At these levels, the public cannot use the Stands, as they are earthquake prone buildings. By closing the West Stand seating, the NBS rating increased to 45%. At this level, the hospitality, media and amenity rooms at the top of the Stand can be used safely.

The response to the earthquake assessments was, first, to protect public safety for patrons and staff. This involved closing both stands for all use. After that, the focus has been on getting the Stadium operational again before the process of determining the required remedial works occurs. A significant recovery programme was implemented to get Yarrow Stadium operational for ongoing events and commitments. Residual funding for 2017/2018 and funding for 2018/2019 has been committed to this recovery programme.

The next steps are to determine the options for the repair/reinstatement of the two Stands. The majority of the 2018/2019 year will be consumed in the examination of options and then making the decisions on how the Stands will be made operational and how these works will be funded.

Yarrow Stadium is well regarded nationally and internationally and, as such, the Taranaki Stadium Trust is committed to getting Yarrow Stadium fully operational as soon as is practicable.

The start of the 2017/2018 year involved the completion of the new amenities blocks behind the West Stand and the completion of the new hospitality suites in the West Stand. The remainder of the Trust’s 2017/2018 funding was committed to the recovery programme to get Yarrow Stadium operational again.

The assessment of the two stands as earthquake prone buildings has required the Trust to reassess the value of those stands. This is a complex process as there are many unknowns in the future uses and/or repair of the stands. Consequently, the Trust has taken a conservative approach to the carrying value of the two stands and has written down the value of those assets by $15.5m.

The Trust’s auditors have issues an unmodified audit opinion on the Trust’s annual report except for the assessment of the impairment of the two stands. They note:

115 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

been completed at the time of authorising the financial statements. For this reason, there are limited audit procedures that we can perform to independently conclude the reasonableness of the asset value as at 30 June 2018.

The auditor is, correctly noting that there is insufficient information to form an opinion on whether the impairment assessment is too much, too little or about right.

Yarrow Stadium and the Trust faces some challenging times ahead as the goal of returning the Stadium to full operational use is implemented.

Legal considerations This memorandum and the associated recommendations comply with the appropriate statutory requirements imposed upon the Council.

Appendices/Attachments Document 2126170: Taranaki Stadium Trust 2017/2018 Annual Report: Covering Letter Document 2126146: Taranaki Stadium Trust 2017/2018 Annual Report Document 2126145: Taranaki Stadium Trust 2017/2018 Annual Report: Audit Opinion

116 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

20 September 2017 Document: 2126170

Mr Basil Chamberlain Chief Executive Officer Taranaki Regional Council Private Bag 713 STRATFORD

Dear Basil

Taranaki Stadium Trust 2017/2018 Annual Report

In accordance with section 10.2 of the Taranaki Stadium Trust’s Revised Deed of Trust, I am pleased to present a copy of the Trust’s audited 2017/2018 Annual Report.

If you require any further information, please do not hesitate to contact me.

Yours faithfully

MJ Nield Trustee

117 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

118 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

119 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

Table of Contents

Entity information forthe Year Ended 30 June 2018...... 1 Trustee's Report...... ^ Statement of Service Performance...... ^

Statement of Financial Performance for the Year Ended 30 June 2018 ...... 5 Statement of Changes in Equity for the Year Ended 30 June 2018...... 5 Statement of Financial Position as at 30 June 2018 ...... 6

Statement of Cash Flows for the Year Ended 30 June 2018...... 7

Notes to the Financial Statements ...... 8 Trust Directory ...... 17

Document 2102633

Taranaki Stadium Trust: 2017/2018Annual Report

120 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

Entity information for the Year Ended 30 June 2018

Legal name

Taranaki Stadium Trust

Type of entity and legal basis

The Taranaki Stadium Trust (the Trust) is a charitable trust incorporated in New Zealand under the Charitable Trusts Act 1957 and is domiciled in New Zealand. The Trust is controlled by the Taranaki Regional Council and is a Council Controlled Organisation as defined under section 6 of the Local Government Act 2002, by virtue of the Council's right to appoint the Board of Trustees.

The Trust s purpose

The purpose of the Trust is to promote the effective and efficient maintenance, development, management, operation and promotion ofYarrow Stadium as a community asset used for recreation, sporting and cultural activities for the benefit of the people ofTaranaki, working in particular with the Taranaki Regional Council and the New Plymouth District Council.

Structure of the Trust's operations, including governance arrangements

The Trust comprises a Board of two Trustees who oversee the governance of the Trust. The Trustees are appointed by the Taranaki Regional Council. The Trust does not employ any staff. All the Trust's administrative and support services are undertaken by the Taranaki Regional Council. The operation of Yarrow Stadium is undertaken by the New Plymouth District Council pursuant to a ManagementAgreement.

Main sources of the Trust's cash and resources

Operating grants received from the Taranaki Regional Council are the primary sources of funding to the Trust

Outputs

Refer to the statement of sewice performance.

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121 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

Trustee's Report

The Trustees are pleased to present the Taranaki Stadium Trust's 2017/2018 Annual Report.

The purpose of the Trust is to promote the effective and efficient maintenance, development, management, operation and promotion ofYarrow Stadium as a community assetused for recreation, sporting and cultural activitiesfor the benefit of the people of Taranaki, working in particular with the Taranaki Regional Council and the New Plymouth District Council.

The Trust, the New Plymouth District Council and the Taranaki Regional Council have a partnership arrangement for the operation and the development, maintenance and enhancement of the Yarrow Stadium facilities. Under the Trust's Deedand the ManagementAgreement betweenthe Trust andthe NewPlymouth DistrictCouncil, the NewPlymouth District Council operates and funds the operations of Yarrow Stadium. The Taranaki Regional Council funds, via the Trust, the long-term maintenanceand development of Yarrow Stadium.

This partnershipfor funding and operating/maintaining/developingassists in maintainingYarrow Stadium as a premier regional sports and events venue.

Highlights

Yarrow Stadium hosted an All Blacks test match againstArgentina in September 2017. This wasthe operational highlightof 2017/2018.

The remainder of the year has been spent addressing issues arising from earthquake assessments of the stands that indicatedthat they are earthquakeprone buildings. The EastStand has been assessedat 10%of new building standard (NBS) and the West Stand at 20% of NBS. At these levels, the Standscannot be used by the public as they are earthquakeprone buildings. By closing the WestStand seating,the NBS rating increasedto 45%. At this level the hospitality, media and amenity rooms at the top of the Stand are able to be used safely.

The response to the earthquake assessments was, first and foremost, to protect public safety for patrons and staff. This involved closing both stands for all use. After that, the focus has been on getting the Stadium operational again before the processof determiningthe required remedialworks occurs. A significantrecovery programme wasimplemented to getYarrow Stadium operational for ongoing events and commitments. Residualfunding for 2017/2018and fundingfor 2018/2019 has been committed to this recovery programme.

The next steps are to determine the options for the repair/reinstatement of the two Stands. The majority of the 2018/2019year will be consumed in the examinationof options andthen makingthe decisionson howthe Standswill be made operational and how these works will be funded.

Yarrow Stadium is well regarded nationally and internationally and, as such, the Taranaki Stadium Trust is committed to getting Yarrow Stadium fully operational as soon as is practicable.

Financial Highlights

The start of the 2017/2018 year involved the completion of the new amenities blocks behind the West Stand and the completion of the new hospitality suites in the West Stand. The remainder of the Trust's 2017/2018 funding was committed to the recovery programme to get YarrowStadium operational again.

The assessmentof the two stands as earthquake prone buildings has required the Trust to reassessthe value of those stands. This is a complex process as there are many unknowns in the future uses and/or repair of the stands. Consequently,the Trust hastaken a conservativeapproach to the carryingvalue ofthe two stands ofthe two stands and has written down the value of those assets by $15. 5m.

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Trustee's Report

Looking Ahead

Yarrow Stadium and the Trust faces some challenging times ahead as the goal of returning the Stadium to full operational use is implemented. //"..

Michael Davey Michael Nield Trustee Trustee 18 September 2018 18 September 2018

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Statement of Service Performance

Performance Targets

The performance ofTaranaki StadiumTrust has beenjudged againstthe following measures:

The presence of a Management Agreement with the New Plymouth District Council for the operation of the Stadium

An agreement for the management and operation of Yarrow Stadium, between the Trust and the New Plymouth District Council, is in place. The original agreement for the Council to manage and operate the stadium was signed in 2004 and the latest renewal came into effect from 27 June 2013. New Plymouth District Council operated Yarrow Stadium in accordance with the Management Agreement during 2017/2018.

The provision of funding for a programme of agreed maintenanceand long-term development of the Stadium. The programme of maintenance and long-term development is to be agreed upon by the Taranaki Regional Council and the New Plymouth District Councii.

The New Plymouth District Council and the Taranaki Regional Council have agreed upon a long-term maintenance and development programme for the ten years from 2016/2017to 30 June 2025. The Taranaki Regional Council provided the annual funding of $876, 000 to the Taranaki Stadium Trust.

Asset management planning forYarrow Stadium is on hold while issues arising from earthquake assessments of the stands, that indicated that they are earthquake prone buildings, are attended to. Funding has been used to attend to issues arising from earthquake assessments of the stands. The focus has been on getting the Stadium operational again.

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Statement of Financial Performance for the Year Ended 30 June 2018

Notes Actual $ Actual $ 2017/2018 2016/2017 Revenue Council funding 876,000 876, 000 Interest revenue 1, 173 4,953 Sundry income Total revenue 877, 173 880,953

Expenses Depreciation 653, 101 642, 897 Finance expenses 101,560 59, 138 Other expenses 297,668 347, 487 Impairment of buildings 5,465,753 Total expenses 6, 518,082 1, 049, 522

Surplus/(deficit) (5, 640,909) (168,569)

Other comprehensive revenue Gains/flosses) on revaluation of Stadium 1,434, 835 Impairment of buildings (10,049,235) Total other comprehensive income (10,049,235) 1, 434, 835

Total comprehensive income/(deficit) (15,690, 144) 1,266,266

Total comprehensive income/fdeficit) attributable to: Taranaki Regional Council (15,690, 144) 1, 266, 266 Total comprehensive income/(deficit) (15,690,144) 1,266,266

Statement of Changes in Equity for the Year Ended 30 June 2018

Notes Actual $ Actual $ 2017/2018 2016/2017

Balance ati July 26,880,259 25, 613,993 Surplus/(deficit) for the year (5, 640, 909) (168, 569) Other comprehensive income (10,049,235) 1,434, 835 Total comprehensive income/(deficit) (15,690, 144) 1,266,266

Balance at 30 June 11, 190, 115 26,880,259

The accompanying notes form part of these financial statements.

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Statement of Financial Position as at 30 June 2018

Notes Actual $ Actual $ 2017/2018 2016/2017 Assets Current assets Cash and cash equivalents 263,331 571, 568 Debtors and other receivables 96, 517 169,410 Total current assets 359,848 740, 978

Non-current assets Property, plant and equipment 15,821,746 29,822,607 Total non-current assets 15, 821, 746 29,822,607

Total assets 16, 181,594 30, 563,585

Liabilities Current liabilities Creditors and other payables 1, 041, 206 1, 903,063 Borrowings 3,950,273 1, 780, 263 Total current liabilities 4,991,479 3, 683, 326

Total liabilities 4, 991, 479 3,683,326

Net assets 11,190,115 26, 880, 259

Equity Accumulated funds 4 10, 220, 115 15, 861, 024 Asset Revaluation Reserve 4 970,000 11,019,235 Total equity attributable to the Trust 11,190,115 26,880,259

The accompanying notes form part of these financial statements.

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126 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

Statement of Cash Flows for the Year Ended 30 June 2018

Notes Actual $ Actual $ 2017/2018 2016/2017 Cash flows from operating activities Taranaki Regional Council 876,000 876,000 Interest received 2, 104 4, 068 Sundry income received Payments to suppliers (444, 568) (300,890) Interest paid (101, 560) (59, 138) Goods and services tax (net) 32,850 (32, 723) Net cash from operating activities 10 364,826 487,317

Cash flows from (used in) investing activities Purchase of property, plant and equipment (2, 843, 073) (175, 991) Net cash from (used in) investing activities (2, 843, 073) (175, 991)

Cash flows from financing activities Applied to borrowings (180,000) Provided from borrowings 2, 170,010 Net cash from financing activities 2, 170,010 (180,000)

Net (decrease)/increase in cash and cash equivalents (308,237) 131, 326 Opening cash and cash equivalents 571, 568 440, 242 Closing cash and cash equivalents 263, 331 571,568

The goods and services tax (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department. The GST(net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes.

The accompanying notes form part of these financial statements.

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127 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

Notes to the Financial Statements

Statement of accounting policies

Reporting entity

The Taranaki Stadium Trust (the Trust) is a charitable trust incorporated in NewZealand under the Charitable Trusts Act 1957 and is domiciled in New Zealand. The Trust is controlled by the Taranaki Regional Council and isa Council Controlled Organisation as defined under section 6 of the Local Government Act 2002, by virtue of the Council's right to appoint the Board of Trustees.

Ratherthan making a financial return, the primary objective of the Trust is to is to promote the effective and efficient maintenance, development, management, operation and promotion ofYarrowStadium as a community asset used for recreation, sporting and cultural activities for the benefit of the people of Taranaki, working in particular with the Taranaki Regional Council and the New Plymouth DistrictCouncil. The Trust has elected to apply PBESFR-A (PS) Public Benefit Entity Simple Format Reporting - Accrual (Public Sector) on the basisthat the Trust does not have public accountability (as defined) and has total annual expenses of less than $2 million.

The financial statements are prepared on the assumption that the Trust will continue to operate in the foreseeable future. The financial statements of the Trust are for the year ended 30 June 2018. The financial statements were authorised for issue by the Board of Trustees on 18 September 2018.

Basis of preparation

Measurement base

The financial statements have been prepared on a historical costs basis, modified by the revaluation of certain fixed assets.

Functional and presentation currency

The financial statements are presented in New Zealand dollars and all values are rounded to the nearest dollar. The functional currency of the Trust is New Zealand dollars.

New and amended accounting standards adopted

In the current year the Trust has elected to apply the requirements of a PBE standard that is part of the Tier 2 PBE accounting requirements. The standard elected is Impairmentof RevaluedAssets including Amendments to PBEIPSASs 21 and 26 for the purposes of the impairment recognised in note 6.

Changes in accounting policies

There have been no changes in accounting policies for the year ended 30 June 2018.

Significantaccounting policies

The following is a summary of the significantaccounting policies, adopted by the Trust, in the preparation of these financial statements.

Goods and services tax

The Trust is registered for Goodsand ServicesTax (GST). The financial statements have been prepared exclusive of GST, with the exception of receivables and payables, whichare stated inclusive of GST.The net amount of GST, recoverable from or payable to the Inland Revenue Department (IRD), is included as part of receivables or payables, in the statement of financial position. The net amount of GST, paid to or received from the IRD, is classified as an operating cash flow, in the statement of cash flows.

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128 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

Notes to the Financial Statements

Revenue

Council grants are recognised as revenue when the funding is received unless there is an obligation to return the funds if conditions of the grant are not met ("use or return condition"). If there is such an obligation, the grant is initially recorded as a liability and recognised as revenue when conditions of the grant are satisfied.

Interest revenue is recorded as it is earned during the year.

Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with banks with original maturities of 3 months or less, and bank overdrafts. Bank overdrafts are shown within borrowings, as a current liability, in the statement of financial position.

Investments

Investments comprise investments in terms deposits with banks. Depositswith banks are initially recorded at the amount paid. If it appears that the carrying amount of the investment will not be recovered, it is written down to the expected recoverable amount.

Debtors and other receivables

Debtors are initially recorded at the amount owed. When it is likely the amount owed (or some portion) will not be collected, a provision for impairment is recognised and the loss is recorded as a bad debt expense.

Property, plant and equipment

Property, plant, and equipment is recorded at cost, less accumulated depreciation and impairment losses with the exception of land and buildings which is recorded at valuation. Donated assets are recognised upon receipt of the asset if the asset has a useful life of 12 months or more, and the current value of the asset is readily obtainable and significant. Significantdonated assets for which currentvalues are not readily obtainableare not recognised. Foran assetto be sold, the asset is impaired if the market price for an equivalent asset falls below its carrying amount. For an asset to be used by the Trust, the asset is impaired if the value to the Trust in using the asset falls belowthe carrying amount of the asset.

Accounting for revaluations

When an item of property, plant and equipment is revalued, any accumulated depreciation, at the date of the revaluation, is eliminated against the gross carrying amount of the asset. Then, the net amount is restated, to reflect the revaluation.

If the carrying amount of an item of property, plant and equipment increases, as the result of a revaluation, the increase shall be recognised in the asset revaluation reserve, within other comprehensive income. However, the increase shall be recognised in the surplus or deficit, to the extent that it reverses a revaluation decrease, of the same asset, previously recognised in the surplus or deficit.

If the carrying amount of an item of property, plant and equipment decreases, as the result of a revaluation, the decrease shall be recognised in the surplus or deficit. However, the decrease shall be recognised in the asset revaluation reserve, within other comprehensive income, to the extent of any credit balance in the revaluation reserve, in relation to that asset.

Revaluations of property, plant and equipment are accounted for on a class-of-asset basis.

In accordance with the Trust's Statement of Intent for the year to 30 June 2018, property, plant and equipment is revalued on a three yearly cycle, with the latest occurring as at 30 June 2017.

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Notes to the Financial Statements

Additions

The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential, associated with the item, will flow to the Trust, and the cost of the item can be measured reliably. In most instances, an item of property, plant and equipment will be recognised at cost. Where an asset is acquired at no cost, or for a nominal cost, it will be recognised at fair value as at the acquisition date.

Disposals

Gains and losses on disposal are determined by comparing proceeds received, with the carrying amount of the asset. Gains and losses on disposal are included in the surplus or deficit. When revalued assets are sold, amounts included in the asset revaluation reserve, in relation to those assets, will be transferred to accumulated funds.

Subsequent costs

Costs incurred subsequent to initial acquisition are capitalised if, and only if, it is probable that future economic benefits or service potential, associated with the item, will flow to the Trust, and the cost of the item can be measured reliably.

Impairment of property, plant and equipment

The carrying values of property, plant and equipment are reviewed annually for impairment, with reference to internal and external factors which may indicate the carrying value exceeds depreciated replacement cost. Any significant impairment is recognised by writing the assets down to their depreciated replacement cost and charging the impairment to the relevant revaluation reserve or to the surplus or deficit, where there is no revaluation reserve. If an asset's carrying value exceeds its recoverable amount, the asset is impaired, and the carrying amount is written down to the recoverable amount. In relation to revalued assets, the impairment loss is recognised againstthe revaluation reserve, for that asset class. Where that results in a debit balance, in the revaluation reserve, the balance is recognised in the surplus or deficit. In relation to assets that are not revalued, the total impairment is recognised in the surplus or deficit.

Depreciation and amortisation expense

Depreciation is provided on a straight-line basis, at rates that will write-off the cost or valuation of assets, to their estimated residual values, over their useful lives. The rates of depreciation are as follows: Buildings 1.25% to 6.67% per annum Furniture, fittings and equipment 6. 67% to 15.00% per annum Office Equipment 15.00% to 30.00% per annum

The residual value and the useful life of an asset is reviewed, and adjusted if applicable, at the end of each financial year.

Creditors and other payables

Creditors and accrued expenses are measured at the amount owed.

Income tax

The Trust has been granted Charitable Status by the IRD and therefore, is exempt from income tax.

Loans

Loans are recognised at the amount borrowed from the lender. Loan balances include any interest accrued at year-end that has not yet been paid.

Critical accounting estimates and assumptions

In preparing these financial statements, the Trust has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the actual results.

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Notes to the Financial Statements

Estimates and assumptions are continually evaluated, and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the value of assets and liabilities, within the next financial year, are discussed below:

Property, plant and equipment useful lives and residual values: At each balance date, the Trust reviews the useful lives and residual values of its property, plant and equipment. To assess whether the useful lives and residual values are appropriate, the Trust considers a number of factors, such as, the physical condition of the asset, the expected period of use of the asset, and the expected disposal proceeds, from future sale of the asset.

An incorrect estimate of the useful life or residual value will impact on the depreciable amount of an asset and will therefore, impact depreciation expense in the statement of comprehensive income, and the carrying amount of the asset in the statement of financial position. The Trust minimises the risk of this uncertainty through physical inspection of assets. The Trust has made an impairment assessment with regard to the East and West Stands in the current financial year-refer note 6.

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131 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

Notes to the Financial Statements

1. Income

Actual $ Actual $ 2017/2018 2016/2017 Annual grant from the Taranaki Regional Council 876, 000 876, 000

Donated goods or services not recognised. During the year, the Trust received professional accounting and secretarial sen/ices from the Taranaki Regional Council at no charge.

2. Finance Expenses

Actual $ Actual $ 2017/2018 2016/2017 Interest - loans 101,560 59, 138 Total finance expenses 101, 560 59, 138

3. Other Expenses

Actual $ Actual $ 2017/2018 2016/2017 Audit fees for financial statement audit 5, 677 5, 519 Bank charges 134 123 Charities commission 44 44 Insurance 72, 583 57, 271 Legal fees 1,211 975 Stadium repairs and maintenance 215,339 281, 275 Valuation fees 2, 680 2, 280 Total other expenses 297,668 347, 487

4. Equity

Actual $ Actual $ 2017/2018 2016/2017 Accumulated funds Balance at 1 July 15, 861, 024 16,029, 593 Surplus/(deficit) for the year (5, 640,909) (168, 569) Balance at 30 June 10, 220, 115 15,861,024

Asset revaluation reserve Balance at 1 July 11, 019, 235 9, 584, 400 Movement in the asset revaluation reserve (10,049,235) 1,434,835 Balance at 30 June 970,000 11, 019, 235

Total equity 11, 190, 115 26,880,259

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Notes to the Financial Statements

5. Cash and cash equivalents

Actual $ Actual $ 2017/2018 2016/2017 TSB Bank current account 256, 153 464,822 TSB Bank on call account 7, 178 106, 746 Total cash and cash equivalents 263,331 571, 568

The carrying value of cash and cash equivalents approximates their fair value.

6. Property, plant and equipment

Actual $ Actual $ 2017/2018 2016/2017 Land at valuation Carrying amount at 1 July 3, 120, 000 2, 370, 000 Additions Revaluation 750, 000 Carrying amount at 30 June 3, 120, 000 3, 120, 000

Furniture, fittings and equipment Cost at 30 June previous year 896, 648 851,468 Accumulated depreciation (347,839) (309,436) Net book value previous year 548, 809 542,032

Carrying amount at 1 July 548, 809 542, 032 Additions 45, 180 Depreciation (41, 415) (38,403) Carrying amount at 30 June 507,394 548,809

Buildings at valuation Cost at 30 June previous year 27, 126,691 26, 034, 626 Accumulated depreciation (972, 893) (1, 316,709) Net book value previous year 26, 153,798 24,717,917

Carrying amount at 1 July 26, 153,798 24,717,917 Additions 2, 167, 228 1, 355, 540 Depreciation (611,686) (604,494) Impairment of buildings (15, 514, 988) Revaluation 684,835 Carrying amount at 30 June 12, 194, 352 26, 153, 798

Office equipment Cost at 30 June previous year 16,430 16, 430 Accumulated depreciation (16, 430) (16, 430) Net book value previous year

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Notes to the Financial Statements

Actual $ Actual $ 2017/2018 2016/2017 Carrying amount at 1 July Additions Disposals Depreciation Carrying amount at 30 June

Total property, plant and equipment 15,821,746 29, 822, 607

As at 30 June 2018 Cost Accumulated Carrying Or Valuation Depreciation Amount Land at valuation 3, 120,000 3, 120,000 Furniture, fittings and equipment at cost 896,648 389,254 507,394 Buildings at valuation 13,778,930 1, 584, 578 12, 194, 352 Office equipment at cost 16,430 16,430 Total property, plant and equipment 17, 812, 008 1,990,262 15,821,746

Valuation TSB Bank holds a restriction over the title of the Trust's property by wayof a registered first mortgage over the property at 6 Maratahu Street, New Plymouth. No plant and equipment is pledged as securityfor liabilities.The land and buildingswere valued, as at 30 June 2017, by lan Baker FNZIV,FPINZ, registered valuer, TelferYoung (Taranaki) Limited. Land and buildings were adjusted in the financial statements, for the year ending 30 June 2017, to reflect this revaluation. The land and buildingsare valued basedon the depreciated replacement cost approach using assumptions the valuer believed to be fair and reasonableat the date of valuation.The valuation was performed by TelferYoung (Taranaki) Limited. TelferYoung (Taranaki) Limited are a registered experienced valuerwith extensive market knowledge in the types of land and buildingsowned by the Taranaki StadiumTrust. The total fairvalue of the land and buildings valued at 30 June 2017 was $27,865, 109.

Impairment Detailed seismic assessments have been completed on the East and West Stands ofYarrow Stadium. The assessments indicatethat the East Stand is 10% of new building standard and the West Stand is 20% of new building standard. As such both stands are earthquake prone buildings and have been closed from use.

The West Stand increasesto 45% of new building standard if the seats are closed to public use and only the facilities at the top of the stand are used. At 45% of the standard, the stand is not considered earthquake prone and can be used again, with the public excluded from the seats. The total carrying value of the East and West Stands before the recognition of impairment loss amounted to $19,726,399.

The Trust is committed to the repair and/or the reinstatement of the stands and for Yarrow Stadium to become fully operational. Investigations have commenced on the options for repairing or reinstating the stands.This workwill not be completed until February2019. Thus, as at 30 June 2018, the Trust has not determined the reasonableapproach to estimate the recoverable service amount of the East and West Stands of the Yarrow Stadium.

Based upon knowledgeto date, the level of impairment is assessed at 50% for the West Stand (excluding the new hospitality area which is fully operational) and 90% for the EastStand. The actual level of impairment loss is likely to be different based upon the outcomes of investigations into repair and/or reinstatement options. This variance may be material.

The total value of the impairment loss of the East and West Stands for the year ended was $15, 514, 988.

$10,049,235 of the impairment has been reversed against previous building revaluations recorded in the asset revaluation reserve, with the remaining balance of $5,465, 753 recognised in surplus or deficit.

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Notes to the Financial Statements

7. Debtors and other receivables

Actual $ Actual $ 2017/2018 2016/2017 TSB Bank interest accrual 15 946 GST receivable 96, 502 168,464 Total debtors and other receivables 96,517 169, 410

8. Creditors and other payables

Actual $ Actual $ 2017/2018 2016/2017 Audit fee accrual 5, 677 5, 519 Trade payables and accruals 1, 035, 529 1, 897, 544 Total creditors and other payables 1, 041, 206 1,903,063

Creditors and other payables are non-interest bearing and are normally settled on 30-day terms. Therefore the carrying values approximate their fair value.

9. Borrowings

Actual $ Actual $ 2017/2018 2016/2017 TSB Bank Liberty Revolving credit facility 3,950, 273 1, 780, 263 Total borrowings 3, 950, 273 1,780,263

The TSB Bank Liberty Revolving credit facility has a draw down limit of $5, 000, 000 and is secured by way of a registered first mortgageover the propertyat 6 MaratahuStreet, NewPlymouth. Interestis incurred at a variablerate of 3.66% pa, being the 90 day mid Bank bill rate plus a 1.45% margin.

10. Reconciliation of net surplus/(deficit) to net cash from operating activities

Actual $ Actual $

2017/2018 2016/2017 Surplus/fdeficit) (5, 640,909) (168,569) Add/ftess) non-cash items: Depreciation and amortisation expense 653, 101 642,897 Impairment of buildings (through surplus/fdeficit)) 5, 465, 753

Add/ftess) movements in working capital items Creditors and other payables (186,012) 159,860 Debtors and other receivables 931 (885) Goods and Services Taxation 71, 962 (145, 986) Net cash from operating activities 364, 826 487, 317

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135 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

Notes to the Financial Statements

11. Related parties

Related-partydisclosures have not been made for transactions with related parties that are within a normal supplier or client/recipient relationship on terms and conditions no more or less favourable than those that it is reasonable to expect the Trust would have adopted in dealing with the party at arm's length in the same circumstances.

The Taranaki Regional Council is deemed to be a related party ofTaranaki Stadium Trust. There are no related party balances as at 30 June 2018.

The Trust owns YarrowStadium, but, the New Plymouth District Council managesand operates the Stadium, in accordancewith a ManagementAgreement, between the two parties. In relation to the yearending 30 June 2018, no debts between the parties were written off or forgiven, and no transactions took place between the parties at nil or nominal value. TheTrust does not have any employees. No Trustee fees were paid during the year.

12. Capital commitments

There are no capital commitments as at 30 June 2018 (2016/2017: $1,451,311).

13. Contingent liabilities

There are no contingent liabilities at 30 June 2018 (2016/2017: nil).

14. Contingent assets

There are no contingent assets at 30 June 2018 (2016/2017: nil).

5. Events after the balance sheet date

The Trust has no material events subsequent to balance date. (2016/2017 - The Trust increased its debt facility to $5m in August 2017 (TSB Bank Liberty Revolving credit facility) to fund capital projects commenced in the 2016/2017 financial year and due to be completed in 2017/2018).

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136 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

Trust Directory

Taranaki Stadium Trust

Nature of business: Charitable Trust

Trustee: Michael Davey Michael Nield

Trust Settlement Date: 23 December 1999

Address: C/- Taranaki Regional Council Private Bag 713 Stratford 47 Cloten Road Stratford

Bankers: TSB Bank New Plymouth

Solicitors Till Henderson Stratford

Auditors: Melissa Youngson Deloitte Limited on behalf of the Auditor-General

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137 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

INDEPENDENT AUDITOR’S REPORT

TO THE READERS OF TARANAKI STADIUM TRUST’S FINANCIAL STATEMENTS AND STATEMENT OF SERVICE PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2018

The Auditor-General is the auditor of Taranaki Stadium Trust (the Trust). The Auditor- General has appointed me, Melissa Youngson, using the staff and resources of Deloitte Limited, to carry out the audit of the financial statements and statement of service performance of the Trust on his behalf.

We have audited:

 the financial statements of the Trust on pages 5 to 16, that comprise the statement of financial position as at 30 June 2018, the statement of financial performance, statement of changes in equity and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information; and

 the statement of service performance of the Trust on page 4.

Qualified opinion

Qualified opinion on the financial statements – Limited procedures over the impairment of Yarrow Stadium

In our opinion, except for the matter described in the Basis for our qualified opinion section of our report, the financial statements of the Trust on pages 5 to 16:

o present fairly, in all material respects:

- its financial position as at 30 June 2018; and

- its financial performance and cash flows for the year then ended; and

o comply with generally accepted accounting practice in New Zealand in accordance with Public Benefit Entity Simple Format Reporting – Accrual (Public Sector).

Unmodified opinion on the statement of service performance

In our opinion, the statement of service performance of the Trust on page 4:

o presents fairly, in all material respects, the Trust’s actual performance compared against the performance targets and other measures by which performance was judged in relation to the Trust’s objectives for the year ended 30 June 2018.

Our audit was completed on 18 September 2018. This is the date at which our qualified opinion is expressed.

The basis for our qualified opinion is explained below. In addition, we outline the responsibilities of the Trustees and our responsibilities relating to the financial statements and the statement of service performance, we comment on other information, and we explain our independence.

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Basis for our Qualified Opinion

Impairment of building assets for Yarrow Stadium

The impairment loss recognised on the Eastern and Western Stands of Yarrow Stadium that is disclosed in Note 6 of the financial statements amounts to $15,514,988. This amount is based on knowledge to date. A further assessment has commenced on the options and costs for repairing and/or reinstating the stands, however this has not yet been completed at the time of authorising the financial statements. For this reason, there are limited audit procedures that we can perform to independently conclude the reasonableness of the asset value as at 30 June 2018.

We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the Professional and Ethical Standards and the International Standards on Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under those standards are further described in the Responsibilities of the auditor section of our report.

We have fulfilled our responsibilities in accordance with the Auditor-General’s Auditing Standards.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Responsibilities of the Trustees for the financial statements and the statement of service performance

The Trustees are responsible on behalf of the Trust for preparing financial statements that are fairly presented and that comply with generally accepted accounting practice in New Zealand. The Trustees are also responsible for preparing the statement of service performance for the Trust.

The Trustees are responsible for such internal control as they determine is necessary to enable them to prepare financial statements and statement of service performance that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements and the statement of service performance, the Trustees are responsible on behalf of the Trust for assessing the Trust’s ability to continue as a going concern. The Trustees are also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Trustees intends to liquidate the Trust or to cease operations, or have no realistic alternative but to do so.

The Trustees’ responsibilities arise from the Local Government Act 2002.

Responsibilities of the auditor for the audit of the financial statements and the statement of service performance

Our objectives are to obtain reasonable assurance about whether the financial statements and the statement of service performance, as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in accordance with the Auditor-General’s Auditing Standards will always detect a material misstatement when it exists. Misstatements are differences or omissions of amounts or disclosures, and can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could

139 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

reasonably be expected to influence the decisions of readers, taken on the basis of these financial statements and the statement of service performance.

We did not evaluate the security and controls over the electronic publication of the financial statements and the statement of service performance. As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. Also:

 We identify and assess the risks of material misstatement of the financial statements and the statement of service performance, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control.

 We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.

 We evaluate the appropriateness of the reported statement of service performance within the Trust’s framework for reporting its performance.

 We conclude on the appropriateness of the use of the going concern basis of accounting by the Trustees and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Trust’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements and the statement of service performance or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Trust to cease to continue as a going concern.

 We evaluate the overall presentation, structure and content of the financial statements and the statement of service performance, including the disclosures, and whether the financial statements and the statement of service performance represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Trustees regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Our responsibilities arise from the Public Audit Act 2001.

140 Executive, Audit & Risk Committee - Taranaki Stadium Trust 2017/2018 Annual Report

Other Information

The Trustees are responsible for the other information. The other information comprises the information included on pages 1 to 3, but does not include the financial statements and the statement of service performance, and our auditor’s report thereon.

Our opinion on the financial statements and the statement of service performance does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon.

In connection with our audit of the financial statements and the statement of service performance, our responsibility is to read the other information. In doing so, we consider whether the other information is materially inconsistent with the financial statements and the statement of service performance or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on our work, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Independence

We are independent of the Trust in accordance with the independence requirements of the Auditor-General’s Auditing Standards, which incorporate the independence requirements of Professional and Ethical Standard 1(Revised): Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board.

Other than the audit, we have no relationship with, or interests in, the Trust.

Melissa Youngson Partner for Deloitte Limited On behalf of the Auditor-General Hamilton, New Zealand

141 Executive, Audit & Risk Committee - Public Transport Operational Update for the quarter ending 30 September 2018

Agenda Memorandum

Date 23 October 2018

Memorandum to Chairperson and Members Executive, Audit and Risk Committee

Subject: Public transport operational update for the quarter ending 30 September 2018

Approved by: M J Nield, Director - Corporate Services

BG Chamberlain, Chief Executive

Document: 2138479

Purpose The purpose of this memorandum is to provide members with an operational report of the public transport services for the quarter ending 30 September 2018.

Recommendation That the Taranaki Regional Council: 1. receives and notes the operational report of the public transport services for the quarter year ending 30 September 2018.

Background The Council is responsible for promoting an integrated, safe, responsive and sustainable land transport system within the region. This involves a range of activities, including provision of public transport services and the Total Mobility Scheme.

Citylink (New Plymouth, Bell Block, Waitara and Oakura) bus service Patronage over the quarter increased 5.3% on the same quarter last year. Patronage was 175,380 up 8,643 with increases in all categories excluding Adult, Community Service Card and WITT. Most of the increase is attributable to higher student patronage.

Following a complaint from one passenger regarding another passenger and their respective Disability Assist dogs, we were able to glean a better understanding of the legislation governing service dogs travelling on buses. In this instance, we met with each passenger and their dogs and by working through the issues with compassion and empathy were able to reach a solution that was agreeable to all, ensuring both parties continue to use the buses.

142 Executive, Audit & Risk Committee - Public Transport Operational Update for the quarter ending 30 September 2018

Connector (Hawera to New Plymouth) bus service Patronage over the quarter decreased (15%) on the same quarter last year. Patronage was 7,971 down 1,447 with the most significant decreases in TDHB patients (20%), Tertiary (42%), WITT (17%) and other students attending training courses down (36%). Some of the reasons for these decreases include the nurses strike meaning appointments for patients were down, less WITT students registering for the Connector this year and no students from south Taranaki participating in the Build A Bach programme this semester. Ongoing changes will continue to be monitored. There was strong growth in SuperGold Card, up 238 or 42% on the same period last year.

We are grateful to Pickering Motors for investing in the brand-new Connector bus, launched on 1 August, making four return trips each weekday with extensions from and to Opunake on the first and final trips respectively.

The new bus is big, bright and has more seats with diagonal seatbelts; the new vehicle has more locker space (for prams, pushchairs and even bikes). Other features include three rows of seats with extra legroom, air suspension at the rear for a smoother ride, electronic destination board and security cameras.

Advertising on the back of the bus has been secured by Restore Taranaki adding to the overall impact of the new branding and bringing in additional revenue.

An animated advert is currently in production to promote the Connector service and once finished will be released through social media and movie theatres in Taranaki.

Also under development is a public version of the booking management App, which currently allows Council, Pickering Motors and TDHB administrative staff to create passenger bookings. The revised App will allow individuals to make their own travel bookings thereby offering greater flexibility to the service and reducing staff time spent on this function.

Southlink services September data was only available for Opunake to New Plymouth meaning this service full quarter data was available for reporting. Patronage over the quarter increased 23% on the same quarter last year. Patronage was 230, up 43 with the increases in SuperGold Card, up 13 or 11% and Child, up 17 or 113%.

143 Executive, Audit & Risk Committee - Public Transport Operational Update for the quarter ending 30 September 2018

Contract changes for the Opunake to Hawera including Manaia to Hawera Southlink service are in progress. It is intended that the following changes will be take effect from December 2018:  Cease the Tuesday Manaia service and amalgamate into a revised Opunake to Hawera service,  Reroute the existing Opunake-Kaponga-Eltham to Hawera service to Opunake– Kaponga–Manaia to Hawera,  Change the day of service from Friday to Thursday, and  Change the operator from Weir Bros to Pickering Motors.

Reasons for this approach are:  Demand for the Tuesday Manaia service has dropped as has the Opunake to Hawera over a number of years. Both services are averaging 3-4 passenger per week,  By switching to Pickering Motors the total kilometres travelled to deliver the service will be reduced, as Weir Bros are based in Hawera, thereby reducing the total contract cost and improve the financial viability of the service. Farebox recovery for both is around 10%, well below Council target of 25%, and  By changing the day we provide increased travel options for Opunake residents enabling them to go to Hawera on Thursdays and New Plymouth on Fridays.

World Car Free Day A highlight this quarter included celebrating World Car Free Day. This is an annual international event held on 22 September, which this year fell on a Saturday. In order to enable our communities to take the fullest advantage, we offered free travel to all bus passengers (excluding the Citylink school bus services). Given that the Southlink services do not operate on a Saturday, we offered free travel to our Southlink patrons travelling in the week preceding. For Connector patrons we offered free fares on Friday 21 September and on

144 Executive, Audit & Risk Committee - Public Transport Operational Update for the quarter ending 30 September 2018

the Citylink service, free travel on Friday 21 September and Saturday 22 September due to the limited Saturday services provided.

Citylink patronage on Friday totalled 1,548 and on Saturday 107, an increase on the previous weeks patronage of 19.4% and 84.5% respectively. Overall, for both days an extra 301 passenger trips recorded, an increase of 22% on the previous week’s patronage.

Connector patronage totalled 133, up 26 or 24% on the previous Friday.

Opunake to New Plymouth recorded patronage of 20, which is about average for the service. No data was available for the remaining Southlink services at the time of preparing this report.

Our social media indicators showed that we reached over 4,500 people with a good number of shares and engagement resulting from the World Car Free Day promotion.

SuperGold Card SuperGold Card trips for the Citylink, Connector and Opunake to New Plymouth for the quarter totalled 14,240, up 1,730 or 14% on the 12,510 for the same 3 services in the same quarter last year.

Total Mobility Scheme Total trips for the quarter were 12,482, up 1,741 or 16.2% on the same quarter last year. This is a recent trend with trip numbers increasing since the implementation of the electronic swipe/ID cards.

The Transition Expo was attended in September with a well-received speech delivered about transport options for people with impairments; covering off on the concessions available, the Total Mobility scheme and our Citylink and Connector services. Approximately 150 students, their families and secondary schools, attended the Expo, who were there to find out and ask questions about the support and services available in the Taranaki District around transitioning from school into the adult world.

During the Expo, the mother of a young man who is hearing-impaired approached our officer. Approximately one year previously, her son Levi was lacking in confidence and reluctant to venture beyond the security of his Stratford home. She had enrolled her son in classes in New Plymouth but he was anxious about travelling there. Our Transport Manager supported her son and collected him from his home, showing him where to wait at the stop and introduced him to the driver of the Connector service. Mrs Jones was delighted to explain that her son was now confident and had come an incredibly long way since that first outing. She could not speak highly enough of how the opportunity to travel independently had assisted her son.

Ironside Vehicle Society Incorporated Total trips for the quarter were 1,896, down 10 or (0.5%). Of the total 1,496 or 79% involved wheelchair passengers.

145 Executive, Audit & Risk Committee - Public Transport Operational Update for the quarter ending 30 September 2018

Legal considerations This memorandum and the associated recommendations comply with the appropriate statutory requirements imposed upon the Council.

Appendices/Attachments Document 2138558: Public Transport Programme Update – September 2018 quarter

146 Executive, Audit & Risk Committee - Public Transport Operational Update for the quarter ending 30 September 2018

Public Transport Programme Update – operational overview September 2018 Citylink performance

Citylink Sept 2018 quarter Year to date 17/18 vs 18/19 Patronage 175,380 175,380 ↑5.% 3 Revenue $276,248 $267,913 ↑3.0 % Farebox* 42.0% 42.0% ↑1.1% Commerciality* 43.7% 43.7% ↑ 1.0% *Ratios exclude indexation costs

Citylink patronage 2016/2017, 2017/2018 and 2018/2019

80,000

70,000

60,000

50,000 2016/2017 40,000 2017/2018 30,000 2018/2019 20,000

10,000

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Fare category 201 8/2019 YTD 2017/18 YTD 17/18 vs 18/19 Adult 8,257 8,453 ↓2.0% Child/Student 103,750 95,934 ↑8.0% Seniors/SuperGold 14,837 12,766 ↑16% Tertiary 1,453 1,101 ↑32% Beneficiary 13,056 14,616 ↓11% Access 1,523 1,465 ↑ 4.0% WITT 5,832 7,577 ↓23% Transfer 25,212 23,508 ↑7 .0% Promotion 1,460 1,317 ↑11%

201 8/2019 YTD 2017/18 YTD 17/18 vs 18/19 Trips per capita 3.1 2.9 ↑ 0.2%

147 Executive, Audit & Risk Committee - Public Transport Operational Update for the quarter ending 30 September 2018

Uurban route patronage YTD 2018/2019 8000

7000

6000

5000

4000

3000

2000

1000

0 1 2 3 4 5 6 7 8 9 20 40 10 11 Route number

Peak/off-peak passenger YTD 2018/2019

19%

Peak Off-peak

81%

148 Executive, Audit & Risk Committee - Public Transport Operational Update for the quarter ending 30 September 2018

Citylink revenue YTD 2015/2016, 2016/2017 and 2017/2018

120,000

100,000

80,000

2016/2017 60,000 2017/2018 2018/2019 40,000

20,000

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

149 Executive, Audit & Risk Committee - Public Transport Operational Update for the quarter ending 30 September 2018

Connector performance

Connector Sept 2018 quarter Year to date 17/18 vs 18/19 Patronage 7,971 7,971 ↓ 15.4% Revenue $52,707 $52,707 ↓ 4.9% Farebox* 60.8% 60.8% ↓ 2.4% Commerciality* 61.4% 61.4% ↓ 1.8% *Ratios exclude indexation costs

Connector patronage YTD 2016/17, 2017/18 and 2018/19

4500

4000

3500

3000

2500 2016/2017

2000 2017/2018 2018/2019 1500

1000

500

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Fare category 201 8/2019 YTD 2017/18 YTD 17/18 vs 18/19 ACCESS 62 56 ↑11% Adult 985 899 ↑10% Beneficiary 640 710 ↓10% Child 114 122 ↓ 7.0% Seniors 88 84 ↑ 5.0% SuperGold 798 561 ↑4 2% TDHB 771 1,079 ↓2% 9 Tertiary 435 643 ↓32% WITT 3,001 3,631 ↓17% Training (Paid) 943 1,477 ↓36% Promotion 134 156 ↓14%

150 Executive, Audit & Risk Committee - Public Transport Operational Update for the quarter ending 30 September 2018

Peak / off-peak patronage YTD 2018/2019

38%

Peak Off-peak

62%

Connector revenue YTD 2016/2017, 2017/2018 and 2018/2019

20000 18000 16000 14000

12000 2016/2017 10000 2017/2018 8000 6000 2018/2019 4000 2000 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

151 Executive, Audit & Risk Committee - Public Transport Operational Update for the quarter ending 30 September 2018

Southlink performance

Opunake to New Plymouth Sept 2018 quarter Year to date 17/18 vs 18/19 Patronage 23 230 ↑23% Revenue $765 $765 ↑ 7.4% Farebox* 16.2% 16.2% ↑ 0.8% Commerciality* 16.2% 16.2% ↑ 0.8% *Ratios exclude indexation costs

At the time of the preparation of the report the patronage data for September was not available for the additional Southlink services, Manaia to Hawera, Opunake to Hawera and Waverley to Hawera.

SuperGold Card

SGC patronage YTD 2016/2017, 2017/2018 and 2018/2019 6,000

5,000

4,000

2016/17 3,000 2017/18 2018/19 2,000

1,000

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Total Mobility Total Mobility trips YTD 2016/2017, 2017/2018 and 2018/2019 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2016/17 2017/18 2018/19

152 Executive, Audit & Risk Committee - Public Transport Operational Update for the quarter ending 30 September 2018

Ironside trips YTD 2016/2017, 2017/2018 and 2018/2019 7500 7000 6500 6000 5500 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2016/17 2017/18 2018/19

153 Executive, Audit & Risk Committee - Public Excluded

Executive, Audit & Risk Committee Public Excluded

In accordance with section 48(1) of the Local Government Official Information and Meetings Act 1987, resolves that the public is excluded from the following part of the proceedings of the Executive, Audit and Risk Committee Meeting on Tuesday 23 October 2018 for the following reason/s:

- Confirmation of Confidential Minutes

154