Napier City Council Summary Annual Report For the period 1 July 2012 to 30 June 2013 Napier City Council Annual Report Summary 2012/13 Contents Mayor and Chief Executive Report 3 Financial Condition Indicators 5 How Rates Were Spent 5 Financial Summary 6 Major Budget Variances 7 Shared Services 10 Financial Overview 11 Activity Summary 23 Democracy and Governance 23 Roading 23 Solid Waste 24 Stormwater 24 Sewerage 25 Water Supply 25 Recreation 26 Social and Cultural 27 City Promotion 29 Planning and Regulatory 30 Property Assets 31 Napier City Council 231 Hastings Street, Napier 4110 Private Bag 6010, Napier 4142 Phone: 06 835 7579 / Fax: 06 835 7579 / Email: [email protected] www.napier.govt.nz Aerial photos courtesy of Peter Scott www.abovehawkesbay.co.nz Napier City Council Annual Report Summary 2012/13 Mayor and Chief Executive Report So, what has Napier City achieved in the last year. Importantly our finances remain in a strong position allowing us to keep our rates at 1.2% and our public debt reduced to $2 million. Activity at the Parklands development continues to fund amenity and facilities for residents and visitors and these add huge value to the city experience and peoples lifestyles. Projects completed over the last 12 months are: Moving Marineland Penguins to a new extension of the Aquarium Junior Cycle Track on Marine Parade Marine Parade Playground additions for older children and the start of the landscaping to the Aquarium Greening of Napier programme continued throughout the city Onekawa Spray Park Stage One of the Hastings Street upgrade has been completed and the large stormwater project along Tennyson Street to Marine Parade beach successfully and safely finished. A pier over the outfall will be constructed in 2014. Taipo Stream Pathway continues the city’s desire to have pathways accessible to all. Roading projects include the Pandora Road roundabout, Puketapu Road reconstruction, Hill Road and Northe Terrace. Significantly the Museum & Art Gallery was handed back to Council in April ready to be filled with the treasures of Hawke’s Bay. The completion of Herschell Street upgrade adds to the ambience of this special area and the MTG (Museum Theatre Gallery) is now back as the cultural heart of Hawke’s Bay. 2012/13 year ends with a huge amount of work completed for the city – it is thanks to our staff, the Council and residents that we can be proud of our city. Barbara Arnott Wayne Jack MAYOR CHIEF EXECUTIVE Page 3 Napier City Council Annual Report Summary 2012/13 Mayor and Councillors as at 30 June 2013 Back Row (L-R): Cr Keith Price (Onekawa–Tamatea Ward), Cr Bill Dalton JP, Cr Tony Jeffery JP. Middle Row (L-R): Cr Rob Lutter (Taradale Ward), Cr Maxine Boag (Nelson Park Ward), Cr Michelle Pyke, Cr Faye White, Cr Mark Herbert (Ahuriri Ward), Cr John Cocking. Front Row (L-R): Mayor Barbara Arnott, Cr Tania Wright JP (Taradale Ward), Cr Kathie Furlong (Deputy Mayor), Cr Dave Pipe (Nelson Park Ward). Mission Statement To provide the Facilities and Services and the Environment, Leadership, Encouragement and Economic Opportunity to make Napier the Best City in New Zealand in which to live, work, raise a family, and enjoy a safe and satisfying life. Page 4 Napier City Council Annual Report Summary 2012/13 Financial Condition Indicators Actual TYP/AP Actual 2013 2013 2012 $000 $000 $000 Rates revenue 45,938 45,466 44,840 Net surplus 7,837 16,216 18,744 Working capital 80,147 24,642 69,317 Public debt 2,021 2,020 4,028 Total assets 1,378,123 1,379,746 1,375,190 Proportion of rates revenue to total revenue (%) 53.48% 46.80% 47.30% Public debt as a percentage of total assets 0.15% 0.15% 0.30% Proportion of rates revenue applied to service debt (%)* 7.50% 9.30% 8.30% * Gross interest cost is used for this calculation - internal interest income included not as a reduction of interest cost. Refer Borrowing Programme page 86 of the full Annual Report.. How Rates Were Spent The chart below shows the split of rates expenditure between Council’s activities. A negative percentage indicates a contribution to rates. Roading 26.68% Stormwater 11.49% Sportsgrounds 9.28% Reserves 8.02% Libraries 7.78% Democracy and Governance 4.79% Napier Aquatic Centre 4.12% HB Museum and Art Gallery 4.10% Wastewater 3.96% Community Planning 3.34% Public Toilets 2.12% City and Business Promotion 2.05% Water Supply 2.01% Regulatory Consents 1.78% National Aquarium of NZ 1.52% Planning Policy 1.50% Solid Waste 1.13% Napier Municipal Theatre 1.07% Cemeteries 1.06% Environmental Health 1.03% Emergency Management 0.97% Napier i-SITE Visitor Centre 0.80% Inner Harbour 0.74% Building Consents 0.67% War Memorial Conference Centre 0.59% Animal Control 0.55% Marine Parade Pools 0.53% Halls 0.43% City Promotion 0.24% Par 2 MiniGolf -0.19% Retirement and Rental Housing -0.63% Kennedy Park -1.53% Property Holdings -2.04% Page 5 Napier City Council Annual Report Summary 2012/13 Financial Summary Actual Budget Actual 2013 2013 2012 $000 $000 $000 Summary Statement of Comprehensive Income for the Year Ended 30 June 2013 Total income 85,899 97,144 94,805 Less operating expenditure 78,098 80,863 75,984 Less finance costs 255 278 289 Share of associate surplus/(deficit) 291 213 212 Income tax expense - - - Surplus/(deficit) after tax 7,837 16,216 18,744 Valuation gains (loss) taken to equity (392) - 8,176 Fair value gains/(losses) through comprehensive income on investments (20) - 7 Total comprehensive income 7,425 16,216 26,927 Statement of Changes in Equity for the Year Ended 30 June 2013 Balance at 1 July 1,352,959 1,339,461 1,326,032 Surplus/(deficit) after tax 7,837 16,216 18,744 Valuation gain/(loss) taken to equity (412) - 8,183 Total equity 1,360,386 1,355,677 1,352,959 Statement of Financial Position as at 30 June 2013 Total current assets 94,029 43,931 85,084 Total non-current assets 1,284,094 1,335,815 1,290,106 Total assets 1,378,123 1,379,746 1,375,190 Total current liabilities 13,883 19,289 15,767 Total non-current liabilities 3,854 4,780 6,464 Total liabilities 17,737 24,069 22,231 Total public equity 1,360,386 1,355,677 1,352,959 Statement of Cash Flows for the Year Ended 30 June 2013 Net cash from operating activities 34,623 30,658 37,069 Net cash from investing activities (29,224) (19,056) (39,666) Net cash from financing activities (2,008) (2,008) (8) Net (decrease)/increase in cash, cash equivalents and bank overdrafts 3,391 9,594 (2,605) Cash, cash equivalents and bank overdrafts at the beginning of the year 4,612 (1,520) 7,217 Cash, cash equivalents and bank overdrafts at the end of the year 8,003 8,074 4,612 1. Part 6 Section 98 (4) (b) of the Local Government Act 2002 requires Council to make publicly available a summary of information contained in its Annual Report. 2. The specific disclosures included in the summary financial report have been extracted from the full financial report authorised for issue by the Mayor and Chief Executive on 8 October 2013. This summary has been prepared in accordance with FRS-43: Summary Financial Statements. 3. The summary financial report cannot be expected to provide as complete an understanding as provided by the full financial report. The full financial report dated 8 October 2013 has received an unqualified audit report. A copy of the financial report may be obtained from Council’s offices and from Councils website napier.govt.nz. Select Plans, Policies, Bylaws tab and then Plans & Reports. 4. This summary financial report has been examined by the auditor for consistency with the full financial report. An unqualified auditor’s report is included with this summary. 5. The Summary Financial Statements are for Napier City Council as an individual entity and are presented in New Zealand dollars rounded to $000’s. 6. The primary objective of Napier City Council is to provide goods and services for the community or social benefit rather than making a financial return. Accordingly, Napier City Council has designated itself as a public benefit entity for the purposes of New Zealand equivalents to NZ IFRS. 7. The full financial report was prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP) and comply with New Zealand equivalents to International Financial Reporting Standards (IFRS) as appropriate for public benefit entities. 8. Changes to Accounting Policy - There were no changes this year. Page 6 Napier City Council Annual Report Summary 2012/13 Major Budget Variances Explanations for major variations from Council’s 2012/13 Annual Plan are as follows: 2.1. Statement of Financial Performance 2.1.1 Income Income was $11.2m below 2012/13 budget and $8.9m below 2011/12 year. Significant variances to budget arise from other revenue and other gains/(losses) classifications as follows: (a) Finance Income Interest income of $3.5m for 2012/13 was better than budget by $1.8m. Interest bearing deposits were significantly higher during the year than anticipated in the budget as cash held by Council was significantly higher than budget. Cash held is invested in interest bearing deposits in accordance with Councils investment policy. Increased amounts held on deposit have resulted in higher than planned interest income.