Operations and Monitoring
Committee – Terms of Reference
Fields of Activity
The purpose of the Operations and Monitoring Committee is to
ensure consolidated and complete reporting and monitoring of all financial and
non-financial information and performance measures against the Annual Plan,
Long-Term Plan and Council Strategies, Goals and Priorities.
Membership
·
(Mayor and 14 Councillors).
·
Chair appointed by Council.
·
Deputy Chair appointed by Council.
·
1 Heretaunga Takoto Noa Māori Standing
Committee Member appointed by Council.
Quorum – 8 members
Delegated Powers
1)
Authority to exercise all of Council’s
powers, functions and authorities (except where prohibited by law or otherwise
delegated to another committee) in relation to all matters detailed in the
Fields of Activity.
2)
Authority to exercise all of Council’s
powers, functions and authorities (except where prohibited by law) at any time
when the Chief Executive certifies in a report that;
·
the matter is of such urgency that it requires
to be dealt with
·
the matter is required to be dealt with, prior
to the next ordinary meeting of the Council.
3)
Monitor the performance of Council in terms of
the organisational targets set in the Long Term Plan and Annual Plan –
both financial and nonfinancial.
4)
Monitor operational performance and
benchmarking.
5)
Undertake quarterly financial performance
reviews.
6)
Develop the Draft Annual Report and carry
forwards.
7)
Monitor and review the performance of Council
Controlled Organisations and other organisations that Council has an interest
in.
8)
Monitor and review tender and procurement processes.
9)
Monitor major capital projects.
10) Recommend to Council on matters concerning project decisions where
these are identified as a result of the committee’s project monitoring
responsibilities.
11) Writing off outstanding accounts for amounts exceeding $6,000 and
the remission of fees and charges of a similar sum.
12) Settlement of uninsured claims for compensation or damages where the
amount exceeds the amounts delegated to the Chief Executive.
13) Guarantee loans for third parties such as local recreational organisations
provided such guarantees are within the terms of Council policy.
14) Authority to exercise the Powers and Remedies of the General
Conditions of Contract in respect of the Principal taking possession of,
determining, or carrying out urgent repairs to works covered by the contract.
15) Grant of easement or right of way over Council property.
16) Approve insurance – if significant change to Council’s
current policy of insuring all its assets.
Te Hui o Te Kaunihera ā-Rohe o Heretaunga
Hastings
District Council: Operations & Monitoring Committee Meeting
Te
Rārangi Take
Report to Operations and Monitoring Committee
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Nā:
From:
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Aaron Wilson, Financial
Controller
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Te Take:
Subject:
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Financial Quarterly
Report for the nine months ended 31 March 2021
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1.0 Executive Summary – Te Kaupapa Me Te
Whakarāpopototanga
1.1
The purpose of this report is to inform the Committee of the financial result
for the nine months ended 31st March 2021.
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2.0 Recommendations – Ngā Tūtohunga
That the
Operations and Monitoring Committee receive the report titled Financial
Quarterly Report for the nine months ended 31 March 2021 dated 13 May 2021.
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3.0 Background – Te Horopaki
3.1 The accounting operating financial result is reported on
quarterly during the year and at year end a report is prepared on the financial
as well as the rating result. The rating result differs from the
accounting result in respect of non-cash items such as depreciation, vested assets
and development contributions that are not included.
3.2 This
financial report is governance focussed and allows
significant variances to be highlighted with explanations provided in a way
this is easy to read and understand through dashboard analytics and commentary.
3.3 If
Councillors require clarification on any points, please contact the writer prior to the meeting to ensure complete answers can be given
at the meeting on the detail in these reports.
4.0 Discussion – Te Matapakitanga
4.1 Set out below is a summary of the operating financial result
year to date. The financial results detailed below represent the
accounting view and does not reflect the potential rating result for 2020/21:
|
$’000
|
$’000
|
$’000
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Full year Revised
Budget*
|
|
2020/21
|
YTD Actual
|
YTD Revised Budget
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YTD Variance
|
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Operating Revenue
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126,163
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116,582
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9,580
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157,608
|
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Operating Expenditure
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103,714
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105,586
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1,871
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139,890
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Net Surplus/(Deficit)
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22,448
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10,997
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11,451
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17,718
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* Revised budget
includes the Annual budget, Brought Forwards and surplus allocations from 19/20
financial year
4.2 The
result above is presented against the revised
budget. The revised budget includes changes and decisions made during the
year on Council budgets which includes carry forwards from 2019/20.
4.3 Council’s
overall financial result is $11.45m ahead of YTD budget
for the quarter ended 31st March
2021.
4.4 Overall revenue
is $9.6m greater than YTD budget and expenditure is $1.9m, lower than YTD
budget.
Revenue
4.5 Fees
and charges revenue across Council are favourable by $9.34m with the main
drivers being:
· Unbudgeted
government funding received for 3 waters infrastructure of $7.7m.
· Higher than
budgeted connection fess revenue in wastewater ($313k) and Drinking water ($230k)
will be offset by higher spend.
· Planning and
Regulatory services are unfavourable to budget by $603k driven by lower than
budgeted building consent fees ($493k) along with lower parking revenues
($108k). Lower parking revenues are reflective of the impact of COVID-19 with
Government not requiring vehicle warrant of fitness’s to be renewed until
October 2020 with the impact being felt year to date.
· Council’s
share of Landfill revenue is $1.34m favourable to budget due to higher volumes.
· Splash Planet
revenue is $839k favourable with significantly higher volumes of people through
the gate along with higher than budgeted revenue in sales of food and gifts.
There has been some offset by lower admission fees revenue in other pools of
$343k, partly due to the effects of Level 2 restrictions on the learn to swim
programmes.
4.6 Subsidies
and Grants are $221k ahead of budget mainly due to MBIE subsidies received,
this is offset by higher capital expenditure.
4.7 Other
revenue and interest received are $597k ahead of budget mainly due to a gain on
sale of land.
4.8 Development
contributions are unfavourable to YTD budget by $1.174m. Phasing of budgets in
relation to when contributions occur is difficult, and creates timing
differences as it is not always known in advance in what month a payment will
occur when the budget is being set.
4.9 Additional
Revenues received
Additional revenue has been received
as part of the first tranche from the Provincial Growth Fund (PGF) and
DIA. This is as follows:
Expenditure
4.10 Overall expenditure
is tracking favourably year to date as at 31st March 2021 by $1.9m
or 1.4% against total budgeted expenditure year to date. Main drivers
include:
4.11 The
negative variance to budget for non-cash entries in terms of depreciation
($1.5m) are driven by higher asset values due to prior year revaluations in 3
waters, along with increased spend in infrastructure projects in water,
roading, and with buildings.
4.12 Finance
costs are favourable by $1.22m which is a reflection of lower levels of debt
than phased in the budget and lower actual interest rates compared with those
assumed in the budget. Additional funding received from the Government for
water infrastructure in advance of it being required has delayed the
requirement for additional debt funding.
4.13 Other
operating costs are favourable to budget by $870k, and are driven by higher
recovery costs where personnel and operational expenditure is recharged to
capital projects.
Areas of
Interest
4.14 Splash
Planet- The decision to open Splash Planet for the season back at the
beginning of the current financial year, whilst still operating under
uncertainty with regards COVID – 19 has proved to be a good one, with
record numbers recorded for the month of January 2021. This has resulted
a net operations (Revenue less operating expenditure) surplus before capital
spend of $623k.
4.15 Building
Control – The high level of economic activity within the Hastings District
and wider region has seen demand for building consents soar over the last three
years, both on a commercial and residential level.
4.16 Revenues
from consents have not reached budgeted levels partly due to vacancies within
the building team unable to be filled. This has meant a corresponding drop in
operational expenses related to the processing of consents. In addition,
this area has absorbed additional unbudgeted costs of $117k related to
compliance and investigation costs. At a net operations level building control
has a small surplus of $35K before capital spend.
4.17 While
the Building Control activity is forecasting an overall rating loss of $94k,
this is primarily driven by the impact of the compliance investigations, as the
reduced revenue has been offset by reduced expenditure in terms of BAU
(business as usual).
4.18 Pools
– Net operations for pools is $206k unfavourable, primarily driven by
the COVID 19 restrictions on learn to swim revenue. Water world has also
had a reduced revenue stream regarding Canoe Polo, with new Regional Sports
Park Canoe Polo Pond being utilised over the summer period.
4.19 Toitoi
– With Toitoi being affected from Level Two restrictions, performance
at a net operations level is $88k adverse to budget. Like the pools this
facility is highly sensitive to any change in alert levels.
Areas of unbudgeted but approved spend in the current
financial year:
4.20 Looking forward in the current financial year, it is
important to be aware of what unbudgeted expenditure has already been approved
by Council.
4.21 Municipal Building:
Council has approved an additional
$5.5m spend in order to complete the Municipal building project. A significant
portion of this unbudgeted expenditure will be incurred in the 2021/22
financial year.
4.22 Heretaunga House
Due to the unexpected earthquake
prone status of Heretaunga House, Council has been faced with unbudgeted
expenditure to quantify the cost involved to strengthening the building, and
provide alternative accommodation for staff displaced from the building. In
addition to these extra costs, there has been a loss of revenue from tenants
that there were leasing space in Heretaunga House.
4.23 In order to understand the work required to strengthen
Heretaunga House, Officers have commissioned consultant reports through The
Building Intelligence Group who are providing project management support.
The approach has been to spend the minimum amount necessary to achieve adequate
confidence in the estimated works and costs to make sound future
decisions. As a result the total estimate cost of approximately $50,000.
This work is currently being peer reviewed.
4.24 Year to date revenue is below budget by $288k due to the
loss of tenants that were leasing space. Operational expenditure excluding
depreciation is $143k above budget due to the additional unbudgeted but
approved costs associated with moving to 100 Warren Street. These costs
include the setup and establishment costs including partitioning, data and
electrical work.
4.25 Unbudgeted costs due to the Heretaunga House displacement
are likely to be funded from contingency reserves topped up at 1 July
2020 from the 2019/20 landfill surplus.
Covid- 19 Impacts in the current financial Year:
4.26 Whilst
the COVID-19 impact was mostly felt in the final quarter of the previous
financial year, there have been some ongoing effects that are still impacting
Council’s finances, albeit on a reduced scale from the prior year.
4.27 Sportsground
fees and charges after waivers and cancellations are $34k unfavourable YTD.
Should it be required contingency funding of up to $90k has been allowed for,
although it is unlikely the final shortfall will be anywhere near this amount.
4.28 Toitoi
revenue has been affected with Level 2 restrictions being in play for the
significant period of the first quarter. Toitoi cancelled approximately
20 events that were booked over the first quarter of this financial year. Of
these 20 events, 9 cancellations were made during the first lockdown and 11
cancellations were directly resultant of the level 2 restrictions in the first
quarter of this financial year. Alongside the cancellations there have
been 8 theatre events and 9 corporate events postponed. That is a further
17 events in total that have migrated from the first quarter in to the second
and third quarters.
4.29 Level
2 restrictions have also affected learn to swim with income at Flaxmere and
Clive substantially below budget. As a comparison last year’s income for
the third quarter was $353k, this year that is down to $282k.
4.30 With
the motor vehicle warrant of fitness renewals delayed until October, the
charging of infringements for out of warrant on vehicles were stopped.
This along with higher equipment maintenance costs have impacted on net operations.
4.31 Through
the revision of the 2020/21 Annual Plan, Council agreed to allocate $500k from
the sale of Orchard Road to a Covid-19 operational contingency for the purpose
of covering some of these unknown but expected financial impacts from the Covid-19
pandemic. An allocation from this contingency may be required to cover
these shortfalls, however a judgement on this will be made closer to year end
once a more complete picture of the year-end financial result is understood.
Forecast – Looking Forward
4.32 Officers
have prepared an updated the financial forecast as to how the year end should
look now the third quarter has been completed.
4.33 There
have been a number of assumptions that have been made in order be able to
provide an accurate picture at year end
4.34 In
order to provide working clarity for budget managers, this forecast shows the
bottom line rate requirement forecast for a wide range of activities within
Council.
4.35 The
rating forecast differs from the accounting result in respect of non-cash items
such as depreciation, vested assets and development contributions that are not
included. In terms of local government, rating requirement is regarded as being
an important indicator as it is shows how the rates that were collected have been
spent.
4.36 The
table shows the forecasted position across all Council activities at year end
against what the budgeted requirement is for the full year. The variance shows
whether there is a forecasted deficit or surplus. (A positive variance
represents an underspend to budgeted requirement, and a negative variance an
overspend).
4.37 The
line highlighted in blue shows the “whole of Council requirement”
and shows a $2.04m surplus at the end of year compared to budget, after net
interest savings have been factored in.
4.38 The
second table that is in green, shows how the surplus or deficit (i.e. $2.048m)
is split between what can be used as a general surplus against what needs to be
applied to the targeted rate surplus or deficit.
4.39 Targeted
rates surplus/deficit are ring fenced and cannot be used for other
activities. Therefore, when the makeup of the $2.04m forecast surplus is
split out between the general rate and the targeted rate, the general rate
shows a forecasted surplus of $1.06m.
This is a very
good result, forecast wise three quarters through the financial year, with the
number of challenges that Council have faced both on a local and national
level.
Assumptions
4.40 The
following assumptions and actions have been taken in modelling the end of year
forecast.
· Excludes
any surplus from Landfill
· All
revenue lines have been reviewed and adjusted.
· All
expenditure lines have been reviewed and adjusted.
· Some
contingency funding has not been applied as officers will apply this if the
year-end outcome should require it.
Capital
Spend
4.41 Council’s
total capital revised budget (including carry forwards, renewals, new works,
and growth projects) for 2020/21 is $146m. This level of expenditure is a
significant increase on what has been delivered previously by Council and there
is risk associated with the ability of Council to deliver on this programme.
4.42 The
large capital budget is made up of :
· Annual Plan $102m
· PGF Funding for
Jobs for Heretaunga $9m (added into
Annual Plan )
· Carry forwards
from 2020 $30m
· Tarbet Street
Project $2m
· HB Museum Storage $3m
Additionally there
will be further government funding received through 2020/21 and 2021/22
totalling $29m for housing infrastructure and three waters that is not
currently included in the Annual plan.
Of the three
waters $15.3m government funding Council has already received $7.3m in the
first tranche the remaining funds to be received as expenditure is incurred and
claimed back. It is likely that projects relating to this funding will
start in the following financial year.
4.43 Capital
spend for the year to date is $59.85m, against year to date budget of $90m.
Capital spend is forecasted to be $93.9m by year end and will represent the
largest ever delivery of capital works by Council. Whilst there are a large
number of projects out to tender a significant number of those projects will
not be completed by year end. Forecasting at this stage suggests carry
forwards into the 2021/22 financial year to be circa $46.2m.
4.44 It
needs to be noted that there have been a significant number of factors
impacting on Council’s ability to complete what is in the plan. The
Government’s need to provide stimulus to support the COVID-19 recovery
has led to significant funding for Council to embark on projects outside of the
original annual plan. The PGF funding for Jobs for Heretaunga was for $9m
and was added to the Annual Plan at a very late stage, giving officers no time
to consider delaying other projects.
4.45 Whilst
this project will be completed by May 2021, like some of the other government
funded projects, this has placed pressure on resources where other projects had
already been budgeted within the programme.
4.46 Projects
by Activity within the three types of capital spend are shown below:
4.47 Major
projects currently underway within the three types of capital spend are shown
below:
Treasury
4.48 Council’s
total gross debt position is $185.7m which includes $35m of prefunded capital
expenditure and debt refinancing which is currently held on deposit.
4.49 Council is currently compliant with Treasury Management
Policy. The Risk and Assurance Committee reviews and monitors
Council’s treasury performance and policy with advice from Bancorp
Treasury Services.
Attachments:
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1⇩
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Quarterly Dashboard Q3 March 2021
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FIN-09-01-21-196
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Hastings
District Council: Operations & Monitoring Committee Meeting
Te Rārangi Take
Report to Operations and Monitoring Committee
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Nā:
From:
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Jackie Evans, Manager:
Democracy and Governance
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Te Take:
Subject:
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Requests Received under
the Local Government Official Information and Meetings Act (LGOIMA) Update
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1.0 Executive Summary
– Te Kaupapa Me Te
Whakarāpopototanga
1.1 The
purpose of this report is to inform the Council of the number of requests under
the Local Government Official Information Act (LGOIMA) 1987 received in March
and April 2021.
1.2 This issue arises from
the provision of accurate reporting information to enable effective governance.
1.3 This is an administrative report to ensure that the Council is aware
of the number and types of information requests received and to provide
assurance the Council meeting its legislative obligations in relation to the
Local Government Official Information and Meetings Act (LGOIMA).
1.4 This report concludes by recommending that the LGOIMA requests be
noted.
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2.0 Recommendations – Ngā Tūtohunga
A) That the
Operations and Monitoring Committee receive the report titled Requests
Received under the Local Government Official Information and Meetings Act
(LGOIMA) Update dated 13 May 2021.
B) That the
LGOIMA requests received in March and April 2021, as set out in Attachment 1
(CG-16-4-00112) of the report be noted.
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3.0 Background – Te Horopaki
3.1 The
LGOIMA allows people to request official information held by local government
agencies. It contains rules for how such requests should be handled, and provides
a right to complain to the Ombudsman in certain situations. The LGOIMA
also has provisions governing the conduct of meetings.
Principle of
Availability
3.2 The
principle of whether any official information is to be made available shall be
determined, except where this Act otherwise expressly requires, in accordance
with the purposes of this Act and the principle that the information shall be
made available unless there is good reason for withholding it.
3.3 Purpose
of the Act
3.4 The
key purposes of the LGOIMA are to:
· Progressively
increase the availability of official information held by agencies, and promote
the open and public transaction of business at meetings, in order to:
· enable
more effective public participation in decision making;
· promote
the accountability of members and officials;
· so
enhance respect for the law and promote good local government;
· protect
official information and the deliberations of local authorities to the extent
consistent with the public interest and the preservation of personal privacy.
3.5 City,
district and regional councils, council controlled organisations and community
boards are subject to LGOIMA and official information means any information
held by an agency subject to the LGOIMA.
3.6 It is not limited
to documentary material, and includes material held in any format such as:
· written
documents, reports, memoranda, letters, notes, emails and draft documents;
· non-written
documentary information, such as material stored on or generated by computers,
including databases, video or tape recordings;
· information
which is known to an agency, but which has not yet been recorded in writing or
otherwise (including knowledge of a particular matter held by an officer,
employee or member of an agency in their official capacity);
· documents
and manuals which set out the policies, principles, rules or guidelines for
decision making by an agency; and
· the
reasons for any decisions that have been made about a person.
3.7 It
does not matter where the information originated, or where it is currently
located, as long as it is held by the agency. For example, the
information could have been created by a third party and sent to the
agency. The information could be held in the memory of an employee of the
agency.
What
does a LGOIMA request look like?
3.8 There
is no set way in which a request must be made. A LGOIMA request is made
in any case when a person asks an agency for access to specified official
information. In particular:
· a
request can be made in any form and communicated by any means, including
orally;
· the
requester does not need to refer to the LGOIMA; and
· the
request can be made to any person in the agency.
3.9 The
Council deals with in excess of 14,000 service requests on average each month
from written requests, telephone calls and face to face contact. The
LGOIMA requests dealt with in this report are specific requests for information
logged under formal LGOIMA procedure, which sometimes require collation of
information from different sources and/or assessment about the release of the
information requested.
Key Timeframes
3.10 An
agency must make a decision and communicate it to the requester ‘as soon
as reasonably practicable’ and no later than 20 working days after the
day on which the request was received.
3.11 The
agency’s primary legal obligation is to notify the requester of the
decision on the request ‘as soon as reasonably practicable’ and
without undue delay. The reference to 20 working days is not the de facto
goal but the maximum unless it is extended appropriately in accordance with the
Act. Failure to comply with time limit may be the subject of a complaint
to the ombudsman.
3.12 The
Act provides for timeframes and extensions as there is a recognition that
organisations have their own work programmes and that official information
requests should not unduly interfere with that programme.
4.0 Discussion – Te Matapakitanga
Current Situation
4.1 Council has requested
that official information requests be notified via a monthly report.
5.0 Options – Ngā Kōwhiringa
Not applicable
Attachments:
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1⇩
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Official Information Requests Report March and April 2021
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CG-16-4-00112
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Summary of
Considerations - He Whakarāpopoto Whakaarohanga
|
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Fit
with purpose of Local Government - E noho hāngai pū ai ki te
Rangatōpū-ā-Rohe
The Council is required to give effect to the purpose of
local government as set out in section 10 of the Local Government Act 2002.
That purpose is to enable democratic local decision-making and action by (and
on behalf of) communities, and to promote the social, economic,
environmental, and cultural wellbeing of communities in the present and for
the future.
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Link to the Council’s Community Outcomes – Ngā Hononga ki Ngā Putanga ā-Hapori
N/A
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Māori
Impact Statement -
Te Tauākī Kaupapa Māori
N/A
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Sustainability
- Te
Toitūtanga
N/A
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Financial
considerations -
Ngā Whakaarohanga Ahumoni
N/A
|
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Significance
and Engagement - Te
Hiranga me te Tūhonotanga
N/A
|
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Consultation
– internal and/or external - Whakawhiti Whakaaro-ā-roto / ā-waho
N/A
|
|
Risks:
Legal - Ngā
Tūraru: Ngā Ture
Opportunity: N/A
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REWARD – Te Utu
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RISK – Te Tūraru
|
|
[State the benefit, opportunity, innovation of the
outcome & whether it benefits; Safety (public/ staff/ contractors),
Finances, Service Delivery, Legal compliance, Reputation.]
|
[State the significant risks or threats (4 or 5 max) to
the objective & whether they affect; Safety (public/ staff/ contractors),
Finances, Service Delivery, Legal compliance, Reputation.]
|
|
|
Rural
Community Board –
Te Poari Tuawhenua-ā-Hapori
N/A
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