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KAIKÕURA DISTRICT COUNCIL

FINANCE COMMITTTE MEETING

Date: 29 May 2019

Time 9:45 a.m.

Location COUNCIL CHAMBERS, 96 WEST END, KAIKÕURA

AGENDA

1. Apologies

2. Declarations of Interest

3. Matters of Importance to be raised as Urgent Business

4. Minutes to be Confirmed: 01 May 2019 page 2

5. Urgent Business

6. Finance Report page 3

7. Variance Report page 16

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MINUTES OF THE KAIKŌURA DISTRICT COUNCIL FINANCE MEETING HELD AT

9:51AM ON WEDNESDAY 1 MAY 2019, AT COUNCIL CHAMBERS, 96 WEST END,

KAIKŌURA

PRESENT: Councillor J Howden (Chair), Mayor W Gray, Councillors N Pablecheque, C Mackle, D Millton,

T Blunt, C Harnett, L Bond.

DECLARATIONS OF INTEREST:

Councillor Millton – Waipapa Limestone

CONFIRMATION OF MINUTES:

28 March 2019.

Moved by Councillor Howden, seconded by Councillor Harnett and resolved that the Finances

Committee Minutes of 28 March 2019, be confirmed as a true and accurate record.

Unanimous.

FINANCE AND VARIENCE REPORT: The Finance and Commercial Manager was in attendance to present this report.

As per previous months the overall position remains controlled. Debt is lower than

envisaged. Debt will increase as the rebuild commences.

The debt position would change rapidly as contracts had been awarded for rebuild work and

construction is commencing. Council had repaid debt and this generated greater finance

cost savings than the income from cash advance investments would generate. This was

considered prudent treasury management. Loans would be redrawn as the rebuild

commences and balances in the targeted rates reserves would reflect any unspent loan

interest.

An update was presented on the status of the Annual report. Audit NZ has reversed the

qualification on the inland road accounting treatment and staff are actively working with

Audit NZ to finalise the remaining matters.

The Annual Report was still being finalised with the Audit NZ team. However, the priority is

to adopt the Draft Annual Plan for consultation. We do not expect to be able to adopt the

Annual Report until June 2019.

The Finance and Commercial Manager (P Numan) was thanked for all his hard work during

the course of his tenure with the Kaikõura District Council. P Numan’s contract had come to

an end and he was taking up a role within the Mackenzie District Council. Paul was thanked

for his contribution in finalising the earthquake insurance claims.

There being no further business the meeting closed at 10:14am

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Report to: Finance Committee

Date: 1. 21 May 2019

Subject: Finance Report

Prepared by: 2. Paul Numan, Finance and Commercial Manager

Input sought from: Sheryl Poulsen, Finance Manager

Natalie Telford, Assistant Accountant

Authorised by: Angela Oosthuizen, Chief Executive

1. PURPOSE AND ORIGIN:

The purpose of this report is to provide the Finance Audit and Risk with an update on the financial

position of the Council as at 30 April 2019.

2. DISCUSSION:

The following provides a summary discussion on the Financial statements and supporting data as presented in the attachments to this report.

Statement of Financial Position

The Council financial position remains positive and until we incur the budgeted financial commitments from the rebuild programme - all available cash continues to be applied to repayment of borrowings – which ensures we gain the greatest financial return.

Accordingly, this has resulted in our total borrowings at $1.60 million at the end of April and favourable against budget.

Cash on hand at 30 April is $3.2 million.

Working Capital & Liquidity

Working capital finished in April with $2.23 million in assets over liabilities.

Liquidity is 2.4:1, meaning there is $2.40 in cash for every $1 in amounts due to be paid.

Statement of Comprehensive Revenue & Expense

At the end of April 2019, there was a net surplus of $1.694m and although unfavourable against

budget this is due to the timing in the receipt of grants and subsidies principally for the earthquake

rebuild.

Rates Revenue

Rates remissions have been less than forecast ($90k less) and penalties applied to overdue rates are

$30k more than expected. Some of these penalties apply to Maori Freehold Land rates, and will be

written off. These rates are discussed further in the Debtor Report in this agenda.

User fees & charges

Revenue from building consent fees is substantially higher than forecast; due to relatively high

numbers of consents being processed, high value consents being processed (such as the hotel and

other new commercial builds), and the fact that we are having consents processed externally – so the

cost of consent processing is being added to the consent fee.

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Grants & subsidies

The Three-Year Plan had forecast that we would spend over $15 million in earthquake rebuild projects

in the 2018/2019 financial year, and receive over $14 million in grants to fund the work. In reality, just

over $1.6 million has been spent on earthquake-related capital projects as at the end of April, and the

corresponding grants for that work is just over $1 million.

Roading is another area where the NZTA subsidy is less than forecast due to a lower spend in this area,

both in capital and operating spend. With a new dedicated Roading Engineer now on board, the

roading budget will be actively managed with the intention to achieve spend by year end – other than

bridge maintenance which has been delayed pending a review of the assessments that had been done

post-quake. The Crown funding for the Financial & Corporate Sustainability Review work has not been

claimed yet; this is expected to be received by the end of this financial year (June).

Interest & other revenue

Rather than set aside any available cash in term deposits to earn around 3% interest, we have instead

paid down our borrowings. There are greater savings associated with a reduction in debt than can be

received from investment in on call accounts or term deposits.

Other revenue includes petrol tax and infringement fees, and also includes the capital distribution we

receive from the Marlborough Regional Forestry joint venture. Those distributions total $350k for the

year to date, $57k higher than expected – although we are yet to pay Environment Canterbury their

share of the distribution, of around $47k.

Personnel expenses

Employee costs are $403k less than forecast, largely due to the recruitment of engineering and other

personnel being slower than predicted. Rebuild personnel expenses are also much lower than

forecast.

Financing expenses

Loan interest costs are lower than budgeted due to the early repayment of debt, as discussed above,

but also due to loans not being required yet, due to a slower than expected rebuild programme.

Other expenses

This report shows that “Other Expenses” are underspent by $1.244 million. The Variance Analysis

pages in this report highlight several areas of underspend. In summary;

Roading is particularly underspent ($591k under), largely due to the $200k provision for minor events not needed, $156k bridge maintenance yet to commence, and NCTIR haul routes maintenance being less than expected this year ($240k less). Residual funds will be set aside in a special roading reserve.

Three waters are $302k less than budget due to savings in electricity, and less maintenance being carried out.

Community facilities are overspent $132k, due to extra maintenance work on public halls, the pensioner flats, the civic centre, and parks & reserves.

Leadership & governance activities are $468k less than budget due to savings in consultants and professional fees; although we are yet to be billed for the 2018 Annual Report audit. Implementation of

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our new asset management system (Adapt) has also been slower than predicted as staff have been dealing with very high workloads.

Building & Regulatory are $100k over budget, due to consents being processed externally; note these costs are fully recovered by consent applicants (as discussed above in the commentary for user fees and charges).

There have been significant savings in consultants, legal advice and other professional fees, in relation to district planning, due to the plan review process going back to the normal RMA process rather than the streamlined process that had previously been available.

These savings have been more than offset by the cost of freedom camping (site preparation, portaloos, etc.), natural hazards work, and external resources and costs to develop our business case for applications to the Provincial Growth Fund. Those particular costs (for our PGF application) are being fully funded by a $200k PGF grant, which is being claimed in instalments as required.

The above figures may differ from the variances in the Variance Analysis pages due to those pages including all

expense types (personnel, depreciation and financing expenses), whereas the above commentary is referring

to “other expenses” only, as per the Statement of Comprehensive Revenue & Expense.

Revenue and Expenditure Variances

In summary Revenue is under budget by $11.467m and Expenses are under budget by $2.013m.

Further information is provided in the Variance Analysis section of this report and the detail provided

by activity in the Variance Analysis at Appendix 1.

Statement of Cash Flows

The total cash position has decreased to $504K since the last financial report to Council in March 2019

noting pending the rebuild commencing surplus cash has been used to repay debt. This is a cash

management measure, saving over 5% interest expense, instead of earning less than 3% on term

deposits.

Budget Performance (Revenue YTD and Expenditure YTD by Activity)

These are graphic representations of the Statement of Activity Performance and you can see at a

glance how activities are performing against budget and in comparison with each other. They also

highlight the extent to which the earthquake efforts are dwarfing our normal activities.

Revenue & Expenditure Types YTD – by Category

Over 44% of our revenue is sourced from grants and subsidies to 30 April, with 41% in operating costs;

19% in capital works; 18% in personnel costs and 11% in loan and principal repayments.

Variance Analysis

Revenue mainly from Grants and Crown subsidies anticipated to below that budgeted due to slow

progress on the infrastructural rebuild and community facility projects. Similar trend in expenditure in

these areas. Income from the provincial growth fund for the feasibility on major district projects is

favourable (grant not budgeted) and work is progressing to timeline. Contract management is ongoing

to ensure the roading programme is delivered. Slower than anticipated progress on the Natural

Hazards Chapter of the District Plan Review. This will result in lower expenditure to budget. However,

work is progressing albeit slower.

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Activity Revenue Expenditure Comment

Roading !

!

NCTIR Haul Routes behind schedule, Minor events

underspent due to good weather, Incomplete bridge

assessment, Traffic services cost offset with drainage and

unsealed maintenance.

Water

Lower expenditure than budgeted due to EQ damage to pumps (lower electricity costs), some maintenance work not carried out because of network modelling and studies being carried out before completing works.

Sewerage

Lower expenditure than budgeted due to EQ damage to

pumps (lower electricity costs), Planned maintenance

delayed to integrate with rebuild programme.

Stormwater

Expenditure lower than budgeted due to rebuild

investment on EQ

Refuse & Recycling

Higher capital grants due to WMINZ contribution. Major

sites upgrade completed at IWK.

Community Facilities ×

×

Slower progress on Community facilities projects.

Memorial Hall upgrade now underway and due for

completion in October. Pool working group continues to

meet with three options for consideration on the

swimming pool. Continued to work with the Scout Hall

user forum to progress project and funding application to

be submitted to Lotteries for earthquake damage.

Commercial

Leadership and Governance

Continuing work progressing on Annual Plan and

Sustainability Reviews.

Building and Regulatory !

Accreditation compliance costs over budget and high workload being managed by outsourcing processing. Outsourced processing costs fully recoverable.

Community Services

District development !

Slower progress than anticipated on District Plan Review

for natural Hazards but work is progressing.

Implementation of work on Natural Hazards occurring and

resource costs within budget. Feasibility study is

progressing on two major district projects. This work is

fully funded by the Provincial Growth Fund.

Rebuild !

!

Slower progress than anticipated. Work is progressing and

contracts for major projects are being awarded. Continual

governance o oversight of this programme in undertaken

by the Infrastructural Rebuild Steering Group.

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GLOSSARY OF TERMS: Items on the Statement of Financial Position

Cash & cash equivalents Bank accounts and term deposits that mature within 90 days.

Trade & other receivables Debtors and rates accounts (the amount that our ratepayers and customers owe us).

Prepayments & inventory Bills we have paid in advance (such as insurance), plus stock items.

Other financial assets Term deposits that mature after 90 days.

Non-current assets held for sale Investment property that the council intends to sell within 12 months

Intangible assets Carbon credits and computer software (Ozone)

Forestry assets The standing value of trees grown specifically for logging

Investment property Any property that is owned with the intention of generating a return (e.g. Pyne’s building and north wharf buildings).

Property, plant & equipment All other assets – roads, wharves, water and sewer infrastructure, land, buildings, vehicles, furniture, art works, library books, etc.

Trade & other payables Bills we haven’t paid yet, and other amounts we must pay within 12 months (refundable bonds, GST, ECan’s share of rates revenue, etc.).

Employee liabilities Annual leave owing to employees

Borrowings – current Loans that must be repaid within 12 months.

Other liabilities – current Development contributions held for the civic centre.

Provisions Landfill aftercare provision – an estimate of the cost that will be incurred to secure and cap the site once the landfill is closed.

Borrowings – non current The balance of loans that don’t need to be repaid within 12 months.

Other term debt Environment Canterbury’s share of Marlborough Regional Forestry debts, held on behalf.

Public equity A type of equity which records accumulated surpluses and deficits, and other movements in equity not recorded below.

Asset revaluation reserve A type of equity which records movements in property, plant and equipment values.

Special funds & reserves A type of equity which records funds set aside for specific purposes (such as grants, targeted rates, development contribution funds, etc.)

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3. FINANCIAL IMPLICATIONS AND RISKS:

Monthly monitoring and reporting on the Council financials is required as there is a risk that

the Council's financial position could deteriorate with an increase in debt levels; lowered

credit rating; revenue flows are lower than budgeted and expenditure is higher than

projected.

4. RECOMMENDATION:

It is recommended that the Finance Report and financial position of the Finance Committee as

at 30 April 2019 be received.

5. COMMUNITY OUTCOMES SUPPORTED:

The work is in support of all community outcomes.

We value, protect and enhance Kaikōura’s unique natural environment and biodiversity and sustainably manage disposal of waste.

Our District is economically diverse, attractive to investment and provides certainty around business and employment continuity.

Our community is resilient, safe and well and has their essential needs met

Our community participates in decisions and planning in a way that benefits our future.

Our infrastructure, housing and community facilities are easily accessible, cost effective and able to withstand our natural hazards.

Residents and visitors enjoy an improved quality of life in our District.

6. SIGNIFICANCE OF DECISION:

This decision is not considered significant in terms of Council’s Significance and

Engagement Policy.

7. RELEVANT LEGISLATION:

The Local Government Act 2002 states that a local authority should ensure prudent

stewardship and the efficient and effective use of its resources in the interests of its

district or region.

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KEY INDICATORS

AS AT 30 APRIL 2019

OPERATING RESULT OPERATING COSTS

operating surplus/(deficit) costs to deliver existing levels of service

TOTAL EXTERNAL BORROWING INTEREST ON DEBT

total borrowings from bank cost to service debt

CAPITAL EXPENDITURE DEVELOPMENT CONTRIBUTIONS

cost of new &/or replacement of assets received for district growth

DEBT AFFORDABILITY BENCHMARK EBID

financing expenses as a % of rates earnings before interest and depreciation

BALANCED BUDGET BENCHMARK BORROWINGS TO EQUITY

revenue equal or greater than expenses Term loans as a % of equity

$1.69m $10.82m$9,454k unfavourable v/s year-to-date budget of $11,149k $2,014k favourable v/s year-to-date budget of $12.83m

$13.7m favourable v/s year-to-date budget of $16.6m $15.7k favourable v/s year to date budget of $0k

$1.60m $110k$9,105k favourable v/s full year budget of $10.7m $366k favourable v/s year-to-date budget of $477k

FINANCIAL STATEMENT MEASURES

LONG TERM PLAN MEASURES

116% 0.98%16% favourable v/s council benchmark of 100% 4.71% favourable v/s full year budget of 5.70%

2.1% $3.51m7.9% favourable v/s council approved limit of 10.0% $9,820k unfavourable v/s year-to-date budget of $13.33m

$2.85m $15.7k

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STATEMENT OF FINANCIAL POSITION

AS AT 30 APRIL 2019

BUDGET to year end

$

ACTUAL 31/04/2019

$

ACTUAL 31/04/2018

$

ASSETS

Current assets

Cash & cash equivalents 1,831,910 3,240,055 4,527,246

Trade & other receivables 3,741,509 374,956 1,932,245

Prepayments & inventory 98,200 119,677 1,808

Total current assets 5,671,618 3,734,687 6,461,299

Non-current assets

Intangible assets - 188,743 247,126

Forestry assets 2,583,334 2,279,178 2,055,502

Investment property 2,313,125 1,465,000 1,860,000

Property, plant & equipment 192,025,294 159,470,783 153,594,359

Total non-current assets 196,921,753 163,403,704 157,756,987

TOTAL ASSETS 202,593,371 167,138,391 164,218,286

LIABILITIES

Current liabilities

Trade & other payables 1,954,651 1,241,039 2,163,859

Employee liabilities 100,000 265,795 224,321

Borrowings – current 615,906 0 633,042

Total current liabilities 2,670,557 1,506,833 3,021,222

Non-current liabilities

Provisions - 471,549 471,612

Borrowings – non current 8,699,358 1,603,234 2,710,128

Other term debt 564,606 353,730 334,521

Total non-current liabilities 9,263,964 2,428,513 3,516,261

EQUITY

Public equity 89,092,942 93,223,809 94,112,234

Asset revaluation reserve 83,231,984 65,535,566 59,086,740

Special funds & reserves 18,333,924 4,443,671 4,481,829

Total equity 190,658,850 163,203,046 157,680,803

TOTAL LIABILITIES & EQUITY 202,593,371 167,138,391 164,218,286

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STATEMENT OF COMPREHENSIVE REVENUE & EXPENSE

FOR THE PERIOD ENDED 30 APRIL 2019

BUDGET 2019

$

ACTUAL YTD 30/04/2019

$

BUDGET YTD 30/04/2019

$

VARIANCE 30/04/2019

$

REVENUE

Rates revenue 6,852,010 5,277,405 5,139,015 138,390

Water meter charges 130,000 63,189 65,000 (1,811)

User fees & charges 1,381,874 1,145,749 1,064,237 81,512

Grants & subsidies 20,697,800 5,551,732 17,280,174 (11,728,442)

Development contributions - 15,668 0 15,668

Interest revenue 75,423 36,531 62,850 (26,319)

Other revenue1 1,286,109 419,216 366,100 53,116

Total revenue 30,423,216 12,509,489 23,977,376 (11,467,887)

EXPENSES

Personnel 3,704,845 2,687,960 3,091,391 (403,431)

Depreciation 2,042,510 1,702,130 1,702,130 0

Financing expenses 571,843 110,431 476,530 (366,099)

Other expenses 11,191,365 6,314,517 7,558,542 (1,244,025)

Total expenses 17,510,563 10,815,038 12,828,593 (2,013,555)

Operating surplus/(deficit) 12,912,653 1,694,451 11,148,783 (9,454,332)

OTHER COMPREHENSIVE

REVENUE

Gains/(losses) on revaluation - - - -

Vested assets - - - -

ECAN share of MRF profit/loss - - - -

Total other comprehensive

revenue - - - -

TOTAL COMPREHENSIVE

REVENUE 12,912,653 1,694,451 11,148,783 (9,454,332)

1 Other Revenue includes Marlborough Regional Forestry joint venture revenue, penalties on overdue leases, and petrol tax.

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STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 30 APRIL 2019

BUDGET to year end

$

ACTUAL 30/04/2019

$

OPERATING ACTIVITIES

Receipts from rates 6,852,012 5,437,129

Interest received 75,423 36,531

Receipts from other revenue 7,042,777 6,806,824

Payments to employees & suppliers (14,290,016) (9,738,596)

Interest paid (571,846) (110,431)

Goods & services tax (net) - 90,932

Net Cash from Operating Activities (891,650) 2,351,860

INVESTING ACTIVITIES

Grants received for capital work 15,717,727 1,883,432

Purchase of investment property (200,000) -

Sale of forestry - -

Purchase of property, plant & equipment (19,746,078) (3,244,287)

Purchase of forestry assets - -

Purchase of intangible assets - -

Payment into term deposits - -

Net Cash from Investing Activities (4,288,351) (1,360,855)

FINANCING ACTIVITIES

Proceeds from borrowing 2,323,108 -

Repayment of borrowings (396,501) (1,665,889)

Net Cash from Finance Activities 1,926,607 (1,665,889)

NET INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS

(3,193,395) (504,355)

OPENING CASH 5,025,305 3,744,410

CLOSING CASH BALANCE 1,831,910 3,240,055

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Working capital is calculated by subtracting current liabilities from current assets, and is an indicator

of our ability to pay our commitments to suppliers when payments fall due. Please refer to the

Finance Report narrative for more information.

660,001

2,311,947

119,090

834,764

2,040,469

2,328,643

794,747

2,627,028

422,816

369,985

809,202

1,320,634

1,062,215

753,623

1,058,334

1,457,117

902,339

1,216,919

1,024,079

1,210,577

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

ThousandsA

xis

Titl

eRevenue v/s Expenditure - Apr 2019

Inc $369,985 v/s Exp $1,210,577 = Deficit $840,592

INCOME EXPENDITURE

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15

26.98%

15.21%

9.16%

44.38%

3.35%

0.51%

0.29%

0.13%

Targeted Rates

General Rates

User Fees &Charges

Grants & Subsidies

Forestry & Other

Water MeterCharges

Interest

DevelopmentContributions

Revenue YTD by Category

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INCOME APR-19 YEAR TO DATE Actual Budget % Variance

$ Apr Variance

$ Mar Variance U/F T/P Material

Projected Variance

Dashboard Indicator

Notes Ref

Roading $1,224,310 $1,605,312 -23.73% -$381,002 -$224,054 U T Y ! 1 Funding associated with under expenditure on Roading, principally NCTIR Haul Routes, Minor Events, Bridges and Traffic Services has resulted in lower subsidies being received.

Water Services $865,867 $860,444 0.63% $5,423 -$12,796 F P N -$30,000 2 Income from commercial water meters reduced due to out of use buildings and reduction in demand.

Sewerage $557,272 $538,217 3.54% $19,055 $16,813 F P N $40,000 3 Sewerage pan charges higher than anticipated

Stormwater $102,332 $102,087 0.24% $245 $241 F N 4 Negligible - no explanation required

Refuse & Recycling $660,634 $510,898 29.31% $149,736 $146,120 F P Y -$153,000 5 Capital Grants from WMINZ higher. Works completed at IWK.

Community Facilities $1,278,924 $1,872,492 -31.70% -$593,568 -$519,778 U P Y -$480,000 × 6 Grants not yet received for Harbour, Scout Hall, Swimming pool - Harbour claim for grant in progress; other projects not yet commenced

Commercial Activities $380,836 $309,360 23.10% $71,476 $6,446 F Y 7 Distribution from Marlborough Regional forestry higher than Budgeted

Leadership & Governance $84,955 $528,090 -83.91% -$443,135 -$290,711 U T Y 8 DIA Grant funding not claimed for financial Sustainability. Drawdown being progressed with the DIA. DIA Grant funding received for Communications Officer ($43k)

Building and Regulatory $715,824 $629,114 13.78% $86,710 $68,967 F T Y 9 Higher user Fees for Building Control offsetting against lower Infringement fees and costs to be recovered. To be monitored.

Community Services $278,369 $180,291 54.40% $98,078 $103,310 F P Y $95,000 10 Timing of grants received for: Earthquake Outreach Support, Family Violence Coordinator, Earthquake Recovery Support

District Development $2,495,096 $2,241,516 11.31% $253,580 $236,073 F P Y $250,000 11 MBIE Grant funding for Provincial Growth Fund Feasibility studies not budgeted

Earthquake Event $1,904,338 $12,735,388 0.00% -$10,831,050 -$9,684,118 U P Y -$12,185,000 ! 12 Slower than anticipated Rebuild programme impacting claiming of grants. See Rebuild Report

Interest $36,429 $62,850 -42.04% -$26,421 -$25,575 U T N -$40,000 13 Interest over budgeted

Rates $1,924,302 $1,801,317 6.83% $122,985 $124,380 F P Y $120,000 14 Rates remissions lower than expected

Gross Operating Revenue $12,509,489 $23,977,376 -47.83% -$11,467,887 -$10,054,682 -$12,383,000

Less Capital Subs & Grants -$1,883,432 -$13,119,350 -85.64%

Net Operating Revenue $10,626,057 $10,858,026 -2.14% -$231,969

EXPENDITURE APR-19 YEAR TO DATE Actual Budget % Variance

$ Apr Variance

$ Mar Variance U/F T/P Material

Projected Variance

Dashboard Indicator

Notes Ref

Roading $1,599,056 $2,215,790 -27.83% -$616,734 -$590,050 F T Y ! 15 NCTIR Haul Routes running behind schedule, Minor events underspent due to good weather, Incomplete bridge assessment , Traffic services cost offset with drainage and unsealed maintenance, TIMING Ongoing contract management to ensure delivery.

Water Services $983,777 $1,239,840 -20.65% -$256,063 -$270,396 F T Y 16 Electricity lower than budgeted due to EQ damage to pumps; Some maintenance work not carried out because of network modelling and studies thus lower than budgeted, Interest and overheads lower than budgeted. Lower expenditure mainly in Kaikōura Urban,

Sewerage $631,216 $782,886 -19.37% -$151,670 -$122,090 F T Y 17 Electricity Lower than budgeted due to EQ damage to pumps; Interest & overheads lower than budgeted; Planned maintenance delayed to integrate with Rebuild

Stormwater $104,178 $163,460 -36.27% -$59,282 -$40,175 F T Y 18 Consultancy Lower than budgeted due to rebuild investment on EQ; Maintenance lower than budgeted due to rebuild investment on EQ; Overheads lower than budgeted

Refuse & Recycling $492,701 $509,543 -3.31% -$16,842 -$4,329 F N 19 Negligible - no explanation required

Community Facilities $1,694,551 $1,828,357 -7.32% -$133,806 -$141,964 F P Y -$250,000 × 20 Lower interest & overheads under budget; Consultancy under budget; Maintenance over budget - finance to action review coding

Commercial Activities $140,138 $164,569 -14.85% -$24,431 -$18,637 F N 21 Negligible - no explanation required

Leadership & Governance $1,195,058 $1,694,420 -29.47% -$499,362 -$541,573 F P Y 30,000 ! 22

Timing delay in commencing financial sustainability review. Contract and consulting expenses to be monitored as project progresses. Personnel expenses under budget. Interest and costs recovered under budget. Recruitment costs for Rebuild Manager permanent - no budget was provided for this.

Building and Regulatory $859,164 $818,737 4.94% $40,427 $63,005 U P N $60,000 ! 23 Higher compliance costs continue to be a factor - accreditation; Outsourced processing costs to meet workload demand incurred but these will be fully recoverable.

Community Services $697,585 $789,370 -11.63% -$91,785 -$75,527 F T Y ! 24 Lower operating costs overall due to no training and illness at the front of house and the library. The variance will be addressed as new staff have come on line

District Development $1,076,330 $1,127,088 -4.50% -$50,758 $10,376 F P Y -$90,000 ! 25 Consultant expenditure on PGF funded by grant from the PGF, District Plan standard RMA process now being used, had planned to use SPP (streamline plan process)

Earthquake Event $1,312,802 $1,494,533 0.00% -$181,731 -$256,924 F P Y $345,000 ! 26 Rebuild slower than anticipated - see rebuild report.

Bad Debt $28,480 $0 0.00% $28,480 $23,909 U P N -$24,000 27 Bad Debt written off and Collection fees

$10,815,038 $12,828,593 -15.70% -$2,013,555 -$1,964,374 $71,000

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NET POSITION Actual Budget % Variance $ Apr

Variance

Roading -$374,746 -$610,478 -38.61% $235,732

Water Services -$117,911 -$379,396 -68.92% $261,485

Sewerage -$73,944 -$244,669 -69.78% $170,725

Stormwater -$1,846 -$61,373 -96.99% $59,527

Refuse & Recycling $167,933 $1,355 12293.61% $166,578

Community Facilities -$415,627 $44,135 -1041.72% -$459,762

Commercial Activities $240,698 $144,791 66.24% $95,907

Leadership & Governance -$1,110,103 -$1,166,330 -4.82% $56,227

Building and Regulatory -$143,341 -$189,623 -24.41% $46,282

Community Services -$419,216 -$609,079 -31.17% $189,863

District Development $1,418,766 $1,114,428 27.31% $304,338

Earthquake Event $591,536 $11,240,855 -94.74% -$10,649,319

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