Annual Report 2012-13 Summary - Porirua€¦ · Plan 2012/22. Much of this work focused on four...

September 2013

ISSN 978-1-877548-66-6 (print) ISSN 978-1-877548-83-3 (online)

Annual Report Summary2012/13

www.pcc.govt.nz

ANNUAL REPORT SUMMARY – September 2013

Contents

About the Summary ..................................................................................................................................................................... 1

From the Mayor and Chief Executive .......................................................................................................................................... 1

Our Council ...................................................................................................................................................................................3

Services We Provide ......................................................................................................................................................................3

The Council’s Strategic Priorities for 2012/13 ............................................................................................................................. 4

How Did We Do – Achievements & Challenges ..........................................................................................................................5

Financial Performance ................................................................................................................................................................ 9

Report from the Auditor ............................................................................................................................................................ 12

Financial Summary of Audited Accounts 2012/13 .....................................................................................................................13

1


About the Annual Report Summary

This summary gives you an overview of the services and financial performance of the Council for 2012/13. It doesn’t give as complete an understanding as provided by the full financial and service performance statements in the Annual Report adopted by the Council on 18 September 2013 but you can view the full Annual Report at city libraries and the Council’s main offices or online at www.pcc.govt.nz. Both the summary and the full Annual Report have been examined by the Council’s external auditor and received an unqualified opinion. In addition, it is the opinion of the Council and management of Porirua City Council that this summary represents fairly and consistently the financial position and operations of the Council as detailed in the Annual Report 2012/13.

We thank all of the individuals, community groups and organisations who worked with our Council over the past year to help improve living, doing business and raising families in Porirua City.

The 2012/13 year has been a busy one. The Council has worked to deliver what we said we would in the Long Term Plan 2012/22. Much of this work focused on four strategic priorities: A City of Villages, Healthy Harbour, A Growing City, A Great City Experience.

A number of strands of work have been completed as part of city centre revitalisation including changes by the streamside to create a Streamside Quarter. The area has been improved to attract high quality businesses including bars and eateries. The introduction of a new Bizhub for individuals or small businesses operating from home is to be included in this area. Changes at the Saturday morning market, making it more attractive to a wider variety of vendors that give a greater range of food choices for market goers, have also been completed.

Investment in infrastructure over the year has not only contributed to making the experience of living in Porirua better, it also links to our focus on protecting our harbour. We spent $1,638,000 on waste water pipeline renewals and $647,000 to improve the stormwater network. We also spent $1,136,000 renewing our water supply pipelines.

Ongoing work to provide link roads from Transmission Gully has continued. When the motorway is completed, it will also benefit our harbour by diverting traffic and its associated contaminants away from the harbour edge and improve connectivity, safety and the quality of life in our villages that currently are separated by State Highway 1.

Message from The Mayor and Chief ExecutiveWork to create pleasant places across our city to improve local neighbourhoods has continued with new or improved walkways, parks, playgrounds and sportsfields.

We’ve welcomed some new businesses to Porirua in this past year. Swedish Telecommunications Company Ericsson is opening a new production facility in Porirua that will bring 30 new jobs to the city - they are expected to open in the next month. Meanwhile, hardware chain Mitre 10 Mega is also due soon to open its new store in the Porirua’s Mega Centre. Growth in the number of businesses in Porirua has averaged 2.7% per annum since 2000, compared to 1.8% for New Zealand.

There’s been a lot of work done by the councils in the wider region towards working more closely together. This has led to a number of changes that are about to take effect.

The Council and Capacity Infrastructure Services held discussions about Capacity providing asset management, general management and service delivery functions for water supply, wastewater and stormwater in Porirua City. We will soon be entering into a contract with Capacity and the Council will then become a shareholder in Capacity Infrastructure Services.

From 1 October 2013 one new Rural Fire Authority will take effect covering Upper Hutt, Lower Hutt, Wellington, Porirua, and Kapiti Coast. It will also be responsible for land owned by Greater Wellington Regional Council and Department of Conservation as well as private forests. This new authority will be responsible for managing wildfires in forest and rural land within these areas.

The debate on how the Wellington region should be governed has been another area of work keeping us busy. This was done to ensure that the Council was

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Gary SimpsonCHIEF ExECUTIVE

well-informed about, and had input into, the discussions and decision-making on the future function and form of local government in the Wellington region.

In June, the Council agreed to a two-tier, one council model for the Wellington region. The Local Government Commission is now considering a number of applications on the issue and will report back to the community in the next few months.

During our consultation on the draft LTP and then again in the 2013/14 Annual Plan, you asked us to conduct an efficiency and effectiveness review to develop a sound information base on which future budget decisions can be made. The Council appointed Grant Thornton New Zealand Ltd to undertake this review and it is anticipated the results of this review will be available by the end of September 2013.

As part of the Council’s Long Term Financial Strategy, we have managed our finances based on a three pronged approach: that each generation pays its fair share for Council services; that the average rate increase is kept to within the Council’s mandated limits; and that debt is kept within policy limits.

The Council achieved a Net Surplus of $1.6 million compared to a budgeted deficit of $3.4 million largely as a result of favourable non-cash outcomes. These include an increase in Vested Assets of $3.7 million higher than

Nick LeggettMAyOR OF PORIRUA CITy

budgeted and the unbudgeted gain on Interest Rate Swaps of $1.6 million.

We also saw a drop in revenue from Fees & Charges of 7%, principally in lower revenues from Spicer Landfill, Development Contributions, Aquatic Centre receipts and Building and Resource Consents.

The Council has managed its expenditure of $69.8 million to stay below budget of $70.1 million, which is pleasing as it also includes the $1.1 million of costs from the June storm event.

The Council has effectively managed its capital works programme to reflect its commitment to focus on improving the city’s core infrastructure. $15.0 million was spent on capital projects. This work was funded through drawing down on existing reserves – enabling the Council to avoid any additional borrowing in 2012/13. It is unlikely we will be able to rely on the same level of reserves in future years.

Of the Council’s 70 reportable performance measures, we met 76% of targets. This reflects our on-going focus on improving the service provided by our business to the Porirua community.

Finally, we would like to thank members of the Council and the staff at the Council for their efforts and commitment to providing a great service to everyone who lives, works and plays in Porirua.

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Our Council The current Council consists of the Mayor and 13 Councillors namely:

Nick Leggett, Liz Kelly, ‘Ana Coffey, Ken Douglas, Luafataali’i Litea Ah Hoi, Denys Latham, Fa’amatuainu Wayne Poutoa, Robert Rangi, Faafoi Seiuli, Anita Baker, Sue Dow, Bronwyn Kropp, Euon Murrell and Tim Sheppard.

Services We Provide The Council’s business is divided into nine Groups of Activities each with its own section in the full Annual Report. The Groups are:

› Strategy and Planning

› Stormwater

› Wastewater

› Water Supply

› Transport

› Solid Waste

› Community & Leisure

› Environment & Regulatory

› Democratic Process

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City of Villages – Connected and distinctive villages, able to have their respective spaces and characters shaped by the people who live in them.

Healthy Harbour – At the heart of our city of villages, providing recreational, economic and cultural opportunities, now and in the future.

A Growing City – Prosperity, growth and better opportunities for all Porirua residents through city centre revitalisation.

A Great City Experience – Quality, affordable and efficient services at every point enabling residents, businesses and visitors to make the most of their city experience.

The Council’s Strategic Priorities for 2012/13Following consultation with you during the Long Term Plan 2012-22 the Council adopted four Strategic Priorities that have set the direction for the work each of the business groups above have carried out over the past year. These priorities are:

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How Did We Do – Achievements and ChallengesCity of Villages – The Village Planning Programme works in partnership with communities in Porirua to assist with the development of Village Plans to help achieve the vision and outcomes for their neighbourhoods. The Council budgets $500,000 per annum toward this programme.In the past year $468,000 (93% of Capital budget) was spent on various projects across the following villages: Ranui, Cannons Creek, Waitangirua, Whitby, Pukerua Bay, Pauatahanui, Paremata, and Plimmerton. In addition, the Village programme provided help and facilitation with village activities in Hongoeka, Ascot Park, Takapuwahia and Titahi Bay. This work included pathways, events, artworks, mainstreet upgrades, landscaping signage and consultation with village communities.

Other works to keep communities active and connected include:

› Improvements and renewals of the local transport network including public roads (excluding State Highway 1 and 58), road drainage infrastructure and cleaning, walkways and cycleways, traffic and street lighting, and community road safety education activities.

› An extension to the Pauatahanui Pathway – Te Ara Piko with a 350 metre long boardwalk to Ration Creek pathway/cycleway extension on Wi Neera Drive.

› Landscaping, vegetation management and pathway formation at Bothamley Park and assistance in setting up the ‘parkrun’ event within the park

› Playground renewals at Whitehouse Road, Calliope Park and Jillett Street Playgrounds

Challenges

Resident satisfaction with the Village Planning Programme was 46%, slightly lower than target of 48%. The survey respondents were a random sample of residents, some of whom may live in an area that is not in the village programme and therefore may not know about the programme. 3% of the respondents were not very satisfied and 51% didn’t know about the village programme. However, in another survey targeting stakeholders in the village programme, 84% of respondents were satisfied or very satisfied with the programme, exceeding a target of 75%.

The Council works in partnership with communities in Porirua.

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Challenges

Results from the National Suitability for Bathing Report, completed by the Ministry for the Environment in July 2013, showed that at times during the year pollution levels at Plimmerton Beach were ‘Fair’ while at Onepoto, adjacent to the Porirua Rowing Club the results were ‘Poor’. A programme of works was carried out and is already showing improvements in this area.

There are pockets within the harbour, especially after heavy rainfall events, when the public is advised not to collect shellfish. The ongoing improvement works above will address these issues over time.

HealtHy Harbour – The Council spent $179,000 on the Porirua Harbour and Catchment Strategy. This strategy is being delivered in partnership with Ngati Toa Rangatira, Greater Wellington Regional Council and Wellington City Council. Also a number of groups across the Council have completed the following works: Sewerage

› Relined 6.2 kilometres of sewer network.

› Replaced or upgraded pumps at 6 sewer pump stations.

› Targeted inspection of 2,166 properties for sewer/storm water faults as part of the annual cross-connection detection programme. 247 properties (11.5%) were identified with faults and repaired.

› Installed real-time flow monitoring systems on 8 critical pump stations. These enable better sewer network understanding, management and planning.

Litter

› Community groups, with support from the Council, removed 5.5 tonnes of general litter and 4 tonnes of tyres from the harbour as part of an improved harbour litter removal programme.

Environmental Management

› Planted over 29,000 plants and installed 2.5 kilometres of fencing as part of catchment erosion sediment control programmes.

Awareness

› Installed 500 “Drains to harbour/stream” plaques on street sumps in Porirua CBD and strategic locations in the Tawa and Churton Park areas.

› Commenced a regular monthly ‘Harbour Column’ in the Kapi-Mana News to highlight things the public can do to help the harbour.

› Established an extensive monitoring network and environmental survey programme.

› Started three other key projects:

• an estuary restoration plan,

• a catchment erosion control plan, and

• ‘Rural Guidelines’ (to assist rural landowners in using best practice land management activities).

There were 14 maintenance requests per 1000 households relating to the stormwater network against a target of 27.

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a growing City – $850,000 was spent on City Centre Revitalisation and the project’s implementation plan is underway. This includes opening up Ferry Lane to improve pedestrian access into the City. This is an on-going project to improve the functionality of Porirua’s Central Business District (CBD) environment to attract more visitors, new businesses and residents.

A City Prospectus has been developed to attract partnership in a new Biz Hub development in the CBD. The Council has also undertaken bids for government office development in the City. A programme of city centre placemaking events has been implemented including work to revitalise the Saturday market. City centre branding has been developed.

The Live Beyond website and promotional campaign was launched successfully to attract home-buyers in the Wellington region to Porirua, by emphasising that our city has what home-buyers are looking for.

The Environment and City Planning team completed a number of projects to ensure Porirua is a modern growing city recognised for its distinctive villages and communities where residents and visitors can make the most of their city experience.

Welly WiFi in Porirua’s CBD was launched and immediately attracted a substantial number of users. In the first three months the service attracted 36,400 connections. Over 80% of users say that they’d like to see the Council’s free WiFi service extended to more places in Porirua.

Challenges

The departure of NZ Post from under the canopies coupled with the ongoing effects of the recession has meant business in the city centre has slowed.

Employment growth in Porirua City decreased by 2.4% in the year to March 2013 compared with the previous 12 months. This is against a target of 0.5% growth. The Council’s work programme has focussed on promoting growth in service industries (health, education, IT/professional services) in addition to supporting retail and traditional manufacturing companies. Programmes to date have focussed on promoting more effective use of digital tools and technologies and supporting international business connections. This transition is still happening and growth is not as fast as originally anticipated.

City Centre Revitalisation will improve the attractiveness of Porirua’s CBD.

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a great City experienCe – All scheduled Capital upgrades were completed on time and within budget. Almost 78% of the community who were surveyed were satisfied with the levels of service across all activities provided by the Council from rubbish and roads to pools and parks. Highlights include:

› 487,744 visits were made to the Porirua libraries (physical and online), exceeding a target of 300,000 visits.

› 580,500 people used the Council’s indoor recreation facilities (Te Rauparaha Arena (including Fitness Gym), Aquatic Centre, Cannons Creek Pool), exceeding a target of 550,000.

› Pataka attracted 232,436 visitors, 72,436 visitors above target.

› 85% of users were satisfied or very satisfied with the services given by Building Compliance Team, against a target of 75%.

› $647,000 was spent on improvements to the stormwater network to provide greater capacity and enhanced public safety features. No residential, commercial or public buildings were affected by flood water during a 1 in 10 year storm event.

› On-going Asset Replacement Programme for the Wastewater Treatment Plant equipment and facilities at a cost of $1,638,000.

› $48,000 was spent on upgrading the City’s reservoirs.

› The Council invested $1.1 million on improving infrastructure for the delivery of drinking water. This included significant pipeline renewals at Chaffey Crescent, Sievers Grove, Mungavin Avenue, Champion Street, Bedford Street, Castor Crescent, Birman Place, and Niger Street. This reflects the Council’s on-going focus on improving the City’s core-services. The Council met its target of implementing seven initiatives to secure adequate water supply into the future.

› Regular collection of household rubbish including kerbside rubbish collection from urban and some rural residential properties. There were 4 requests per 1000 households relating to missed kerbside rubbish bag collections, achieving a target of less than 10.

Challenges

A major 1 in 30 year storm event in Porirua in June 2013 resulted in seven classrooms and a shop being flooded along with damage to infrastructure across the City.

The Council consistently met 24 of 25 (92%) resource consent conditions at the Wastewater Treatment Plant, against a target of 100%. There have been some issues meeting faecal coliform consent limits in the final treated effluent discharged. New air blowers to rectify the situation were installed in June 2013 with very good results.

Lower operating revenues generated by Spicer Landfill reflects the prevailing economic conditions that have led to a decrease in economic activity, and the subsequent amount of solid waste processed at the Spicer Landfill. The lower revenue was partly offset by savings in operational costs and levy payments. In addition to the budget of $83,000 the Council approved a $100,000 carryover giving a total capital budget of $183,000 for 2012/13.

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Financial Performance long term finanCial strategyThe Council has adopted a three pronged approach to its financial strategy; that each generation pays its fair share for Council services, that the average rate increase is kept to within the Council’s mandated limits; and that debt is kept to within policy limits.

Since the Long Term Plan 2009-19 (LTP) the Council has embarked on bringing the organisation back into a Net Surplus situation which is forecasted to be in 2016/17.

While the Council has achieved a favourable result for 2012/13 to that forecast in the LTP 2012-22, it has been brought about by favourable non-cash outcomes, such as an increase in Vested Assets of $3.7 million higher than budgeted and an unbudgeted gain on Interest Rate Swaps of $1.6 million.

The graph below shows the Council’s progress in achieving its goal.

Net Surplus

The Council has had a successful year and has achieved a Net Surplus of $1.6 million compared to a budgeted deficit of $3.4 million. This is despite the storm damage that occurred in late June 2013 that is estimated to cost the Council $1.1 million.

While the Council is pleased with a Net Surplus of $1.6 million, there was a drop in revenue from Fees & Charges of 7%, principally in lower revenues from Spicer Landfill, Development Contributions, Aquatic receipts, building consents and resource consents.

2010/11

Actual Forecast Budget

Net (Deficit) / Surplus

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

$’000’s 3,0002,0001,000

0(1,000)(2,000)(3,000) (4,000) (5,000) (6,000) (7,000)

The Council has adopted a three pronged approach to its f inancial strategy.

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1009080706050403020100

2010/11

Actual Forecast Policy Limit

Debt Levels

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

The last measure of the Long Term Financial Strategy is keeping debt levels within policy limits. The Council avoided any additional borrowing which had a favourable impact on the following measures:

16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%

2010/11


Interest Expense / Operating Revenue

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

1.4

1.2

1

0.8

0.6

0.4

0.2

02010/11


Debt / Operating Revenue Ratio

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Operating Revenue

The graph below shows the Council’s sources of revenue. As can be seen from the graph, the Council is heavily dependent on Rates Revenue, as Vested Assets, Interest Rate swaps and Investment Property Revaluations are non-cash. The Council received higher than budgeted non-cash revenue in the form of Vested Assets ($3.7 million) and Interest Rate Swaps ($1.6 million), while Investment Property Revaluations were lower than expected ($100,000 compared to a budgeted $500,000), reflecting the current economic conditions.

Where Funds Came From 2012/13

Income from Vested Assets 8%

Rates 65%

Gain on Sale of Assets 0%Investment Property Revaluations 0%

Net Gain on Interest Swaps 2%

Investment Revenue 1%

Subsidies & Grants 5%

Development & Financial Contributions 0%

Fees & Charges 19%

The following graph highlights the challenges the Council has had with Fees & Charges, which was 7% below budget (lower revenues from Spicer Landfill, Development Contributions, Aquatic receipts and Building and Resource consents). The Council received more Subsidies and Grants revenue than expected due to additional revenue from the New Zealand Transport Agency (NZTA) relating to remedial work arising from the storm damage that occurred in June 2013 and additional grant revenue received for the capital work to be undertaken at Te Rauparaha Arena.

16.014.012.010.08.06.04.02.00.0

Fees & charges

Development & financial

contributions

Subsidies & grants

Investment revenue

Gain on sale of assets

Net gain on interest swaps

Income from

vested assets

Investment property

revaluations

$m’s

Comparison of Non Rates Revenue against Budget

$m’s

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20

15

10

5

0Staff Costs

Interest Consulting &

Professional Fees

Contracted Services

Depreciation Fuel, Power &

Gas

Insurance OtherPurchase of

Materials

Repairs of Maintenance

$m’s

Comparison of Expenditure against Budget

Rate Funding of Activities4

Stormwater 4%

Community & Leisure

34%

Democratic Process

5%

Environmental & Regulatory

5%

Strategy & Planning 13%

Solid Waste Services 4%

Transport 11%

Water Services 12%

Wastewater 12%

Repairs & Maintenance 2%

Operating Expenses of Council 2012/13

Staff Costs 30%

Consulting & Professional

Fees 3%

Contracted Services 20%Depreciation 26%

Fuel, Power & Gas 3%

Insurance 2%

Other 6%

Purchase of Materials 2%

Interest 5%

Staff Costs (excluding training, conferences, temporary labour, and other staff costs) were below budget due to a number of staff vacancies that arose during the year. These were filled by temporary staff.

Consulting and Professional Fees were higher than expected as the Council undertook a number of reviews of Council buildings; work on advancing Transmission Gully Motorway; advice on Capacity; and Emergency Management Office and City Centre project work. Contracted Services were higher due to the storm damage remedial work undertaken.

The graph below shows the allocation of rate funding to the various activities that the Council undertakes.

Operating Expenditure

The Council has a wide range of Activities and a wide range of expenditure types to deliver these Activities. The Council’s main operating expenditure falls into 3 major categories, Staff costs, Contracted Services and Depreciation. Changes in levels of service are likely to affect these categories. The graph below highlights the major operating expenditure of Council.

The other expenditure shown were all below budget as the Council sought to manage its expenditure in a more effective and efficient manner.

Service Performance

The Council uses a range of measures to monitor service performance. The measures cover attributes relating to outcomes and service delivery such as timeliness, responsiveness, safety, statutory compliance, project milestones and customer satisfaction.

The Council largely met its performance targets for 2012/13, as shown in the graph below. The Not Applicable category relates to long-term measures which are measured on a 3-5 year time scale, rather than on an annual basis.

Comparison of Expenditure against Budget

The Council has managed its expenditure ($69.8 million) to stay below budget of $70.1 million while being able to absorb $1.1 million in storm damage costs. The graph below compares how actual expenditure compared against that budgeted.

Actual Budget

Performance Measure Results 2012/13

Strategic Priority Measures

Community and Leisure

Democratic Process

Environment and Regulatory

Solid Waste

Transport

Water Supply

Wastewater

Wastewater Treatment

Landfill

Stormwater

Strategy and Planning

Met Within 5% of Target Not ApplicableNot Met

0% 20% 40% 60% 80% 100%

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Financial Summary of Audited Accounts – 2012/2013The disclosures in this summary have been extracted from the full financial information in the Annual Report 2012/13. The financial statements have been prepared in accordance with New Zealand generally accepted accounting practice and comply with New Zealand equivalents to the International Financial Reporting Standards and other applicable Financial Reporting Standards (as appropriate for a public benefit entity). The

Annual Report 2012/13 includes a Statement of Compliance to this effect. These summary financial statements have been prepared in compliance with FRS:43 Summary Financial Statements. These statements are presented in New Zealand dollars rounded to the nearest thousand unless otherwise stated. The Council is not aware of any events subsequent to 30 June 2013 which require an adjustment of, or disclosure in the financial statements.

statement of finanCial positionAs at 30 June 2013This table shows the value of what Council owns and owes. Significant movement in the value of Council’s assets during the year include:

Actual2012/2013

$’000

LTP2012/2013

$’000

Actual2011/2012

$’000

Total Equity 1,099,643 1,135,636 1,094,095

Total Current Assets 17,073 25,189 20,415

Total Non-Current Assets 1,153,875 1,185,869 1,147,762

Total Assets 1,170,948 1,211,058 1,168,177

Current Liabilities excluding Public Debt 12,506 11,312 15,398

Current Portion of Public Debt 12,893 22,440 10,491 Total Current Liabilities 25,399 33,752 25,889

Non-Current Liabilities excluding Public Debt 10,387 11,052 9,866

Public Debt 35,519 30,618 38,327 Total Non-Current Liabilities 45,906 41,670 48,193

Total Liabilities 71,305 75,422 74,082

Net Assets 1,099,643 1,135,636 1,094,095

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statement of CompreHensiVe inComeFor the year ended 30 June 2013This table summarises the Council’s operating income and expenditure as well as other financial transactions that have impacted on the Council’s net equity.

Actual2012/2013

$’000

LTP2012/2013

$’000

Actual2011/2012

$’000

Rates revenue 46,621 46,490 44,887

Fees & Charges 13,298 14,390 13,343

Income from vested assets 5,738 2,069 6,746

Net gain on derivatives 1,610 0 0

Other income 4,129 3,753 4,135

Total Revenue 71,396 66,702 69,111

Personnel costs 21,669 21,490 21,817

Interest expense 3,449 3,548 3,527

Net loss on derivatives 0 0 419

Depreciation & Amortisation 17,892 18,146 16,659

Other expenses 26,799 26,956 29,832

Total Expenditure 69,809 70,140 72,254

Net Surplus/(Deficit) 1,587 (3,438) (3,143)

Revaluation of property, plant and equipment 3,961 52,003 13,245

Total Comprehensive Income 5,548 48,565 10,102

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statement of CHanges in equityFor the year ended 30 June 2013This table summarises the financial transactions that have impacted on the Council’s net equity.

Actual2012/2013

$’000

LTP2012/2013

$’000

Actual2011/2012

$’000

Equity at 1 July 1,094,095 1,087,071 1,083,993

Revaluation gains/losses taken to equity 3,961 52,003 13,245

Net income/(expense) recognised directly in equity 3,961 52,003 13,245

Net Surplus/(Deficit) 1,587 (3,438) (3,143)

Total Comprehensive Income 5,548 48,565 10,102

Equity at the end of the year 1,099,643 1,135,636 1,094,095

Equity at the end of the year is comprised of the following:

Ratepayers equity 335,652 324,055 333,905

Special funds & reserves 8,669 13,656 8,829

Asset revaluation reserves 755,322 797,925 751,361

Equity at the end of the year 1,099,643 1,135,636 1,094,095

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statement of CasH flows For the year ended 30 June 2013This table shows how the Council generated and used cash. The overall net increase or decrease represents the change in our cash and cash equivalents arising from operating, investing and financing activities.

Actual2012/2013

$’000

LTP2012/2013

$’000

Actual2011/2012

$’000

Net Cash from Operating Activities 8,605 14,153 7,791

Net Cash from Investing Activities (12,846) (14,034) (13,460)

Net Cash from Financing Activities 84 2,205 10,437

Net Increase/(Decrease) in Cash (4,157) 2,324 4,768

Cash Resources at the beginning of the year 13,444 2,038 8,676

Cash resources at the end of the year 9,287 4,363 13,444

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Fees & charges

Indoor Recreation, Building Compliance, Resource Consents, Landfill, Water Supply and Waste Management Activities fees and charges revenue were 7% lower than budget. This lower than budgeted revenue is due to the continuing low growth in the economy and increased competition in the leisure areas.

Subsidies & grants

Increase in subsidies and grants is a result of additional funding for Community Services projects and NZTA Roading subsidy. The NZTA increase includes subsidies for storm damage incurred late June 2013 of $0.4 million.

Income from vested assets

Income from vested assets represents the value of land reserves, roads and reticulation assets vested in Council during the course of the financial year. The vesting of assets is outside the control of Council and the amount vested ($5.7 million) was much higher than anticipated.

Personnel costs

Personnel Costs are $0.2 million above budget due to the increased use of temporary staff to fill vacant positions. As these positions are filled this cost will decrease.

Other Expenditure

Other Expenditure is $0.2 million below budget. Storm related costs incurred in late June 2013 of $1.1 million have offset savings made during the year.

Depreciation

Lower carrying cost of assets due to Council capital programme not fully completed and lower than anticipated prior year asset revaluations has meant a lower depreciation charge for the 2012-13 year against budget of $0.3 million. Depreciation is not impacted by the decrease in land under roads revaluation referred to below, as land is not depreciated.

Revaluation of property, plant and equipment

Roading assets and land under roads were revalued on 30 June 2013 adding $4.0 million (net) to the value of the underlying assets. This increase in value was 92% less than planned for in the 2012/13 budget. The value of roading assets increased by $19.7 million and the land under roads decreased by $15.7 million.

Working Capital

The Council fully expects to be able to refinance $10 million of public debt showing as a current liability. This will then give the Council a positive working capital position.

Annual Report 2012-13 Summary - Porirua€¦ · Plan 2012/22. Much of this work focused on four...

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