Finance Committee

Notice of Meeting A meeting of the Finance Committee will be held in the Council Chamber, Forum North, Whangarei on:

Wednesday

25 November 2015 9.00 am

Committee Cr S J Deeming (Chairperson)

Her Worship the Mayor Cr S J Bell

Cr S J Bretherton Cr C B Christie Cr P A Cutforth

Cr S M Glen Cr C M Hermon

Cr P R Halse Cr G C Innes

Cr G M Martin Cr B L McLachlan

Cr S L Morgan Cr J D T Williamson

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Finance Committee Terms of Reference

Chairperson

Councillor S J Deeming

Members

Mayor Section 41A(5) of the Local Government Act 2002 provides that the Mayor is a member of each committee of the territorial authority

Councillors S J Bell, S J Bretherton, C B Christie, P A Cutforth, S M Glen, C M Hermon, P R Halse, G C Innes, G M Martin, B L McLachlan, S L Morgan and J D T Williamson

Attendance at Meetings

The Chief Executive Officer, Group Managers, Department Managers and such other Council Officers as deemed necessary, may attend Committee meetings.

Quorum

A quorum for a meeting of this Committee shall be:

half of the members if the number of members, including vacancies, is even or,

a majority of members, including vacancies, if the number of members is odd.

Delegated Authority 1. Does not have the powers of Council to act in the following instances as specified by

Clause (32) Schedule 7 of the Local Government Act 2002:

a) the power to make a rate; or b) the power to make a bylaw; or c) the power to borrow money, or purchase or dispose of assets, other than in

accordance with the long-term plan; or d) the power to adopt a long-term plan, annual plan, or annual report; or e) the power to appoint a chief executive; or f) the power to adopt policies required to be adopted and consulted on under this Act

in association with the Long Term Plan or developed for the purpose of the local governance statement; or

g) the power to adopt a remuneration and employment policy.

2. Does have the power of Council to enter into contracts up to a value of $3 million + GST, provided such contracts are in accordance with the Long Term Plan.

3. Does have the ability to appoint Sub-committees to deal with any matters of responsibility within the Committee’s Terms of Reference and areas of responsibility, and to make recommendations to the Committee on such matters and provided the

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Sub-committee shall not have power to act other than by a resolution of the Committee with specific limitations where there is urgency or special circumstances.

4. Does have the ability to make decisions in accordance with the Terms of Reference.

Terms of Reference

To review, consider, consult, advise and instruct Management on matters relating to the areas of responsibility of the Finance Committee.

To ensure that Council finances are well managed.

To ensure the provision of administrative services to Council, its Committees and Departments.

To ensure the fulfilment of Council’s legal obligations and responsibilities, including compliance with legal and regulatory matters.

To ensure the preparation of Council’s Long Term Plan, Annual Plan and Annual Report.

To oversee the management of Council’s commercial property portfolio including acquisitions and disposals within its financial delegation.

Areas of Responsibility

Financial/Planning and Control

Corporate Accounting Services

Treasury Management

Loans

Annual Plan

Administrative Services

Democracy Services

Information Systems

Customer Services

Business Excellence

Communications

Commercial property

Pensioner housing

General housing

Forum North

Marinas

Airport

Forestry

Whangarei Information Centre

Whangarei Tourism Trust

Economic Development

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Venues and Events

Such other functions as may be delegated by Council from time to time.

Specific Matters

Finance

Critique and recommend to Council the annual budget

Review monthly variance accounting reports and budget re-forecasts

Provide advice on financial policies

Ensure appropriate delegations are in place.

General

Consider such other matters as referred to the Committee by the Council or Management from time to time.

Make recommendations to Council where appropriate.

OPEN MEETING APOLOGIES CONFLICTS OF INTEREST Members are reminded to indicate any items in which they might have a conflict of interest. INDEX Item No Page No 1. Minutes of a Meeting of the Finance Committee held 28 October 2015 ................... 1 2. Financial Report for the Four Months Ending 31 October 2015 ................................ 5

Recommendations contained in this agenda may not be final decisions. Please refer to the minutes for resolutions.

Local Government Act 2002 Amendment Act 2012

Full consideration has been given to the provisions of the Local Government Act 2002 Amendment Act 2012 in relation to decision making and in particular the current and future needs of communities for good quality local infrastructure, local public services and performance of regulatory functions in a way that is most cost effective for households and businesses. Consideration has also been given to social, economic and cultural interests and the need to maintain and enhance the quality of the environment in taking a sustainable development approach.

Finance Committee 25 November 2015

1. Minutes: Finance Committee Wednesday 28 October 2015

Minutes of a meeting of the Finance Committee held in the Council Chamber Forum North on Wednesday 28 October 2015 at 9.00am Present: Cr S J Deeming (Chairperson) Her Worship the Mayor S L Mai, Crs S J Bell, S J Bretherton, C B Christie, P A Cutforth, S M Glen, G C Innes, C M Hermon, P R Halse, G M Martin, B L McLachlan, S L Morgan and J D T Williamson Also present: Northland Events Centre Trust (W Syers and D Harding) In Attendance: Chief Executive (R Forlong), Group Manager Support Services (A Adcock), Group Manager Positive Growth (J Thompson), Financial Controller (R Kerr), District Promotions and Tourism Manager (P Davis), Property Manager (M Hibbert), Venues and Events Manager (J Lynch), Assistant Accountant (N Wright), Communications Adviser (R Pascoe), Media Relations Adviser (A Midson), Executive Assistants (J Crocombe and D Taylor) and Senior Meeting Co ordinator (C Brindle)

1. Confirmation of Minutes of a Meeting of the Finance Committee held on 23 September 2015 Moved Cr Martin Seconded Cr Morgan

“That the minutes of the meeting of the Finance Committee held on 23 September

2015, having been circulated, be taken as read and now confirmed and adopted as a true and correct record of proceedings of that meeting.”

CARRIED 2. Financial Report for the Three Months Ending 30 September 2015

Moved Her Worship the Mayor Seconded Cr Innes “That the information be received.”

CARRIED

3. Rating Review Scoping Paper

Moved Cr Deeming Seconded Cr Halse “1. That the information be received.

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Finance Committee 25 November 2015

2. That a Targeted Review of current rating issues be completed in conjunction with the 2016/2017 Annual Plan.

3. That included in the review are the issues raised at post Long Term Plan meetings with Commercial ratepayers that relate to:

Separately Used or Inhabited Parts (SUIP’s) Remission and Postponement Policies Eligibility for Rates Rebate Scheme Wider use of Targeted Rates eg for higher levels of service upon ratepayer

request.” CARRIED

Cr Hermon requested her vote against be recorded. Cr Williamson left the meeting at 9.21am during discussions on Item 3.

4. Council Controlled Organisations – Financial Statements for 2014-2015

Moved Cr McLachlan Seconded Cr Morgan “That the Financial Statements for the following Council Controlled Organisations for the year ended 30 June 2015 be received: Whangarei District Airport Northland Events Centre Trust Whangarei Art Museum Trust.”

CARRIED

5. Delegated Authority Moved Her Worship the Mayor Seconded Cr Innes “That the changes to the delegated financial authorisations as listed below be approved and added to the operative list of delegated financial authorities and the delegations manual as from 28 October 2015 until further notice. Laboratory Coordinator Currently Category H $2,000.00

Change to Category G $5,000.00.”

CARRIED

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Finance Committee 25 November 2015

6. Local Government Funding Agency – Annual Report Moved Cr Innes Seconded Cr Cutforth “That the information be received.”

CARRIED

6. Local Government Funding Agency – AGM Matters Moved Cr Deeming Seconded Her Worship the Mayor “1. That the information be received. 2. That the Finance Committee authorise Alan Adcock to attend the AGM as shareholder

representative and for Whangarei District Council to vote by way of proxy to:

Approve the re-election of John Avery and election of Linda Roberston and Mike Trimmer as directors;

Approve the re-election of Tasman District Council and election of Auckland Council as ‘Nominating Local Authorities.

Approve the proposed increase to directors’ remuneration.” CARRIED

Positive Growth Group

8. Positive Growth Group – Report on Recent Activity

Moved Cr Glen Seconded Cr Cutforth “That the information be received.”

CARRIED

9. Post Event FIFA Report

Moved Cr Halse Seconded Cr Deeming “That that the information be received.”

CARRIED

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Finance Committee 25 November 2015

10. Fair Trade

Moved: Cr Cutforth Seconded: Cr Hermon “1. That Council apply to become a Fair Trade Workplace on the basis it has met the

expected requirements. 2. That Council agree to have a representative on Whangarei’s Fair Trade Steering

Committee. 3. That staff report back within six months on Fair Trade in the Workplace within Council. 4. That the Chief Executive be authorised to finalise the Fair Trade Workplace application

as required to meet the certification.” CARRIED

The meeting closed at 10.13am

Confirmed this 25th day of November 2015

S J Deeming (Chairperson)

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Finance Committee 1 25 November 2015

2. Financial Report For The Four Months Ending 31 October 2015

Reporting officer: Alan Adcock ( Group Manager Support Services)

Date of meeting: 25 November 2015 1 Purpose

To provide the financial results for the four months ending 31 October 2015.

2. Recommendation 1. That the financial report for the four months ended 31 October 2015 be received. 3 Background and Discussion

This financial report includes actual results for the fours months ending 31 October 2015, and the revised budget. 3.1 Operating Result

The net surplus for the four months ending 31 October 2015 is $2.167m compared with a budgeted surplus of $0.119m, resulting in a favourable variance of $2.049m. Within this are the following positive variances:

- User fees are $0.2m higher than budget - Operating grants and subsidies are $0.3m higher than budget - Personnel costs are $0.2m less than budget - Other operating expenses are $0.3m less than budget - Depreciation is $0.8m less than budget. - Development contributions $0.5m higher than budget.

These are somewhat offset by the unfavourable variance below:

- $0.6m overspend in repairs and maintenance.

3.2 Capital Expenditure

The capex spend for the year to date is $10.4m compared to a revised budgeted year to date spend of $9.1m (including carry forwards from 14/15), resulting in a total year to date overspend of $1.3m.

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Finance Committee 2 25 November 2015

3.3 External Debt

Total net external debt at the end of October was $132.3m compared to budgeted net debt of $145.3m, resulting in net debt being $13.0m under budget. As at 31 October cash of $24.7m was comprised of:

- $10m of term deposits relating to short term debt issuance (commercial paper) not currently needed,

- $10m of term deposits relating to prefunding entered into in July, - $3m of term deposits and $1.7m of cash on hand at the end of October.

4 Significance and Engagement

The decisions or matters of this Agenda do not trigger the significance criteria outlined in Council’s Significance and Engagement Policy, and the public will be informed via Agenda publication on the website.

Attachments 1. Monthly key indicators 2. Monthly Cash flow statement 3. Monthly balance sheet 4. Monthly income statement 5. Capital projects report 6. Treasury report 7. Accounts receivable

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RESOLUTION TO EXCLUDE THE PUBLIC

That the public be excluded from the following parts of proceedings of this meeting.

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

1. The making available of information would be likely to unreasonably prejudice the commercial position of persons who are the subject of the information. Section 7(2)(c)

2. To enable the council (the committee) to carry on without prejudice or disadvantage commercial negotiations. (Section 7(2)(i).

3. To protect the privacy of natural persons. Section 7(2)(a).

4. Publicity prior to successful prosecution of the individuals named would be contrary to the laws of natural justice and may constitute contempt of court. Section 48(1)(b).

5. To protect information which is the subject to an obligation of confidence, the publication of such information would be likely to prejudice the supply of information from the same source and it is in the public interest that such information should continue to be supplied. Section7(2)(c)(i).

6. In order to maintain legal professional privilege. Section 2(g).

7. To enable the council to carry on without prejudice or disadvantage, negotiations Section 7(2)(i).

Resolution to allow members of the public to remain

If the council/committee wishes members of the public to remain during discussion of confidential items the following additional recommendation will need to be passed:

Move/Second

“That be permitted to remain at this meeting, after the public has been excluded, because of his/her/their knowledge of Item .

This knowledge, which will be of assistance in relation to the matter to be discussed, is relevant to that matter because .

Note:

Every resolution to exclude the public shall be put at a time when the meeting is open to the public.

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