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Waitakere's 10 Year Plan

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Waitakere's 10 Year Plan PART B WAITAKERE CITY COUNCIL Best for the West - Waitakere's 10 year Plan MISSION, GOALS AND TE WHAKATAKANGA, NGA PRINCIPLES TUHENGA, NGA WHANONGA WAITAKERE ECO CITY TETAIAO O WAITAKERE sustainable kia mau tonu nga tikanga dynamic whakahirahira just tino rangatiratanga PRINCIPLES WHANONGA open honest communication kia pono kia ngawari responsiveness kia mama nga wawata accountability ko te whanau hei titiro partnership kia haere kotahi innovation kia kakama excellence kia tino ataahua integrity kia haere totika I roto I te rangaimarie SECTION ONE SECTION THREE Council controlled organisations 2 POLICIES Revenue and fi nancing policy 86 Summary water and sanitary services assessment 10 Rates remission and postponement policies 136 Summary solid waste management plan 21 Policy on remission and postponement of rates on FINANCIAL STATEMENTS Maori land 140 Policy on partnerships with the private sector 141 Summary of activity statements 23 Development contributions and fi nancial Capital expenditure and loan payments 28 contributions policy 143 Prospective funding impact statement 44 Liability management and investment policy 178 Rating information 50 Policy on signifi cance 199 Audit report 202 SECTION TWO FORECAST FINANCIAL STATEMENTS Prospective statement of comprehensive income 60 Prospective statement of changes in equity 61 Prospective application of funds 62 Prospective balance sheet 64 Prospective statement of cash fl ows 66 Prospective fi nancial statements general information 68 Statement of accounting policies 69 Signifi cant forecasting assumptions 78 Prospective summary of future borrowing 84 CONTENTS BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 1 COUNCIL CONTROLLED ORGANISATIONS INTRODUCTION WAITAKERE CITY HOLDINGS LIMITED The Council has three subsidiaries (WCHL) which are Council Controlled Organisations. The following explains OBJECTIVES what the organisations do and how To provide leadership and proactively support the Council by investigating their performance is measured. investment opportunities which have the potential to enhance employment opportunities or to stimulate economic growth; promoting investment in Waitakere; active property portfolio management; seeking out opportunities for diversifi cation of the Council’s income streams; and identifying present and future infrastructure needs. It is acknowledged that the Council seeks more than a simple commercial return, and that there are particular strategic objectives associated with the Council’s ownership of the Waitakere City Holdings and Group entities, with which they must maintain an alignment. NATURE AND SCOPE OF ACTIVITIES Waitakere City Holdings Limited holds on behalf of the Council a shareholding investment in Waitakere Properties Limited (WPL) of $2,300,000, representing 100 percent of WPL’s share capital. Waitakere Properties Limited in turn holds a 40 percent shareholding in Prime West Management Limited. COUNCIL CONTROLLED ORGANISATIONS COUNCIL CONTROLLED Waitakere City Holdings Limited oversees on behalf of Council the operations of the Board of Trustees of the Waitakere Enterprise Trust Board (Waitakere Enterprise or WE). WCHL has a responsibility to ensure that (WPL) and (WE) operates economically and effi ciently, and in accordance with an agreed Statement of Intent and to SECTION ONE optimise the returns - both fi nancial and non-fi nancial - within the parameters set by Council. 2 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE COUNCIL CONTROLLED ORGANISATIONS KEY PERFORMANCE TARGETS FROM THE STATEMENT OF INTENT 2009/2010 PERFORMANCE MEASURE PERFORMANCE TARGET Ensure that the fi nancial targets and strategic direction of A draft 2010/2011 Statement of Intent (SOI) for the holding WCHL are in line with the requirements of Waitakere City company will be submitted to the Council no later than 1 Council. March 2010. This will include a performance scorecard of appropriate qualitative and quantative performance targets. Council is satisfi ed that the content of the draft SOI is strategically aligned and is a sound document. Ensure that Waitakere City Council is kept informed of all Quarterly reports to the Finance and Operational signifi cant matters relating to its group entities. Performance Committee (FOP) of the Council. The quarterly report shall provide information that complies with the reporting requirements outlined in the (SOI). Major matters of urgency are reported to the Chair of the Finance and Operational Performance Committee of the Council and the Council's Chief Executive jointly on a "no surprises" basis with formal reporting undertaken as soon as practical on the Board concluding its investigations and being in a position to report. Ensure that WCHL directors add value to the company A formal evaluation of the WCHL governance structures and and that their conduct is according to generally accepted directorate completed in conjunction with Council by June standards. 2010. Council is satisfi ed that the Board and directors of WCHL add value and the governance structure is appropriate. Ensure timely advice to the Council's Finance and Undertake external biennial board evaluations in conjunction Operational Performance Committee and Chief Executive on with the Council offi cers. The Chairman shall ensure proper the performance of the Boards of the respective activities. completion of Board and director self assessments every alternate year. Ensure that the draft WPL and WE SOIs are appropriate, Review and endorse WPL and WE SOIs with comments to measurable, attainable and timely. the Finance and Operational Performance Committee within suffi cient time to enable feedback within the 60 day statutory time frame. Ensure that the fi nal WPL and WE SOIs are strategically WCHL will direct WPL and WE to produce strategically aligned documents, while also being compatible with the aligned draft 2010/2011 SOIs. strategic aims of the Council. WCHL will assess the alignment of the SOIs with any specifi cally notifi ed Council strategic directives. Objectives of WPL and WE are developed, to be aligned with appropriate Council strategies. Ensure that group entity reporting is relevant and timely. WPL and WE SOIs to incorporate specifi c reporting ORGANISATIONS COUNCIL CONTROLLED requirements, including quarterly reporting of performance The quarterly report shall provide information that complies with the reporting requirements outlined in the SOI. Ensure that there are adequate processes for the WPL and WE SOIs to incorporate specifi c statements identifi cation, assessment and management of the risk regarding the processes for the management of risk exposures of WPL and WE. exposures. SECTION ONE Ensure WPL and WE have risk management policies in place that are aligned to the SOI. Ensure that WPL and WE are complying with the risk management policies. BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 3 COUNCIL CONTROLLED ORGANISATIONS CONTINUED WAITAKERE PROPERTIES LIMITED (WPL) OBJECTIVES The Company will operate as a successful business, recognising that the primary property activities are undertaken as Trust Projects. As a provider of services to the Trust Projects and Waitakere City Council it believes it has obligations that apply to a company operating in this environment: • To maintain such systems and procedures as necessary for the prudent and successful operation of the Company • To ensure that the Trust Projects achieve the strategic outcomes stated in the Trust Deed and to take account, where practicable and commercial, key sustainable objectives and sustainable building practices • To achieve rates of return on the Trust Projects similar to other comparable developments, or to identify the cost of activities not undertaken on a strictly commercial basis • To exercise opportunities that add value to the Company/Council and/or further the Company’s/Council’s objectives • To build the value of the Waitakere Properties Limited brand • To manage the risks associated with the Trust Projects prudently. The Company will aim to maximise the value of the Trust Projects and/or the Company and therefore the value of the investment, by: • Anticipating and meeting the customer’s needs • Ensuring developments are of consistently high quality • Providing customers with value for money • Undertaking or encouraging development in a manner consistent with strategic City objectives • Pursuing opportunities that advance the strategic City objectives. NATURE AND SCOPE OF ACTIVITIES Waitakere Properties Limited develops and manages council-owned properties under a formal trust deed arrangement. As at 30 June 2008, the company administered eight properties under this trust deed arrangement. The combined book value of these properties as at 30 June 2008 is $37.1m and this balance is recognised in the fi nancial statements of Waitakere City Council. KEY PERFORMANCE TARGETS FROM THE STATEMENT OF INTENT 2009/2010 PERFORMANCE MEASURE PERFORMANCE TARGET COMMERCIAL RETURN – WPL To sustain the economic base of the Company to ensure it is • Achieving budgeted revenue and costs able to carry out the required functions for its shareholder. • Ensuring Net Profi t After Tax (NPAT) target for company operations is breakeven or better COUNCIL CONTROLLED ORGANISATIONS COUNCIL CONTROLLED COMMERCIAL RETURN – DECLARATION OF TRUST To ensure that each Trust Project is delivered in a manner Aiming for fi nancial returns in the Trust projects at levels which optimises the commercial benefi t and return to Council consistent with good market practice, or if
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