investment attraction international relations...attraction of these operations. new zealand contact...

75

Investment Attraction & International Relations

A key role for Priority One is to support the creation of an environment that attracts and retains business and investment in the Western Bay of Plenty sub-region in a sustainable manner. This involves removing external barriers to business competitiveness by ensuring infrastructure is capable of meeting business needs and sufficient serviced land is available at a competitive price. It also includes the development of inter-regional and international investment strategies that contribute to economic growth.

BUSINESS ATTRACTION & MARKETING CAMPAIGN

At the heart of what Priority One does is supporting the creation of an environment that attracts new business to the sub-region and retains those businesses that we already have. 'The Tauranga Business Case ' showcases the diversity of successful, innovative, highvalue, internationalised businesses located across Tauranga and the Western Bay of Plenty, with the aim of attracting new business in strategic industry sectors. Priority One also assists businesses moving to the sub-region smooth the relocation process. This includes helping with local authority issues and processes, offering advice and making referrals to the services provided by Priority One's members.

During the reporting period a dedicated Business Relocations Manager was employed on a contract basis to review and re-energise the business attraction campaign and also focus on attracting new business into Tauranga's city centre. As a result, the following new tactical campaigns are being developed:

• Attraction of contact centres: The sub-region has strong competitive advantages to offer contact centres, both in terms of those considering relocating here and existing contact centres that are thinking about outsourcing their work. Priority One brought Giles Potter, a contact centre industry expert, to Tauranga to help determine our potential in the attraction of these operations. New Zealand contact centre industry currently employs around 30,000 staff across 400 locations, with around two thirds of them located in Auckland . Following his visit , Mr Potter believes the sub-region is well-placed to attract a share of the growing contact centre market.

• Distribution centres: A campaign has been launched to target over 800 Aucklandbased importers and distribution centres. In attracting these types of firms, we will be leveraging one of Tauranga's biggest value propositions - proximity to the largest and most efficient port in the country. Together with our abundant and competitively priced industrial land and efficient regional transport infrastructure, we have a pretty compelling case to tempt Auckland-based distribution centres here.

• Logistics and distribution: Of the 18 companies that Priority One is currently working with in terms of potential business relocations , a number are in the logistics and distribution sector. This fits with Tauranga's competitive advantages in terms of proximity to the Port of Tauranga and our strong transport links to the highly populous upper and central North Island areas.

• City centre investment: Positioning Tauranga as a vibrant, contemporary city will attract business and talent, creating high value employment and stimulating economic growth which will positively impact on the entire Bay of Plenty region . A unique value proposition is being developed that will attract local and national highly-productive and knowledge-intensive businesses to the city centre. A key component of this is the 3D animation fly-through that is being developed by Animation Research Ltd.

In terms of individual companies that we are working with , since the business attraction campaign was refreshed in September, we have worked in various ways with nearly 50 companies from elsewhere in New Zealand and overseas that are considering relocating to

Priority One Annual Report 2015-16 Page I 33

76

the sub-region. Of these, four have completed their move, resulting in the establishment of 29 new jobs and around $1 .1 million in capital investment. As at 30 June we are working alongside 18 companies that are active in their relocation plans. If these come to fruition, they will create 352 new jobs and invest around $16.5 million in the sub-region .

It should be noted that all the businesses that have chosen to establish in the sub-region have demonstrated a commitment to using local suppliers and service providers. The downstream economic return of these businesses is well beyond the initial capital spend and direct jobs growth. This is the payback to Priority One's members who have supported the organisation through its formative years to the point that a real economic dividend is now being generated.

INTERNATIONAL RELATIONS

Building and developing our international connections will make the Western Bay of Plenty sub-region more competitive. Targeted international relations activity provides the subregion with opportunities to promote trade, tourism and help attract investment and skilled people to the Western Bay of Plenty.

Priority One supports Tauranga City Council in maximising economic opportunities arising from its partnerships with international cities, ensuring these relationships are strategically aligned to support economic growth. Tauranga's current relationships are with Yantai (China) , Hitachi (Japan) and Ansan (South Korea) .

During the reporting period the following initiatives were undertaken:

• Western Bay of Plenty International Strategy

Priority One led an initiative with local agencies with international relations objectives to improve alignment of collaborative efforts. A group comprising ExportNZ BOP, Tourism Bay of Plenty, Education Tauranga , Tauranga City Council , Western Bay of Plenty District Council and the Ministry for Business, Innovation and Employment have adopted a new strategy to support and leverage international connections, enable a more coordinated approach to offshore activities and make the most of available resources. It identifies a number of actions to promote tourism and trade, and to help attract and retain investment and skills . The international strategy also supports and connects with a range of other local initiatives and strategies, as well as aligning with the government's New Zealand Investment Attraction Strategy to support economic growth.

• NZ China Mayoral Forum

Local Government New Zealand and the Ministry of Business, Innovation and Employment have been leading a project to develop a well-functioning network of core city-regions as a basis for developing collaborative relationships and an 'NZ Inc' approach to economic development. The objective is to enable more targeted investments by central government to increase agglomeration and lift labour productivity. Priority One is providing economic development input to this project on behalf of Tauranga City Council.

A key work stream is the China Engagement project, which has involved the development of a strategy to leverage sub-national relationships in China for economic benefit. This work will determine how cities and regions can work together on a series of targeted delegations.

During the last reporting period , Tauranga City Mayor Stuart Crosby and Priority One's Strategic Projects Manager, Greg Simmonds, took part in a delegation that met with China's President, Xi Jinping in Auckland to sign a formal MOU to establish a New Zealand China Mayoral Forum. The first NZ-China Mayoral Forum was held in Xiamen in September 2015 and attended by both Mayor Crosby and Greg.

Priori ty One Annua l Report 2015-16 Page I 34

77

The forum represented the largest delegation of New Zealand civic leaders to have ever visited China, with 12 mayors representing many of the cities and regions , as well as business and educational leaders from across New Zealand attending . Topics discussed included trade and investment opportunities in the areas of education , tourism and people-to-people exchanges. There is an expectation that business engagement will form a key part of the forums. The next forum will be held in December 2017 at Te Papa in Wellington .

• Mayoral Delegation to China

Tauranga's reputation as a major centre for marine science research and a destination for international students received a significant boost during April 2016. A small delegation led by Mayor Stuart Crosby (Tauranga City Council) and including representatives from Priority One, Education Tauranga, the Coastal Marine Field Station and Takara restaurant, as well as teachers and students from Tauranga Intermediate, spent 10 days in South Korea and China strengthening science and education connections. Key outcomes from the visit included the following :

Advancing an agreement with the Yantai Coastal Zone Institute, one of China's leading marine research institutions, to establish a Sino-NZ marine innovation centre to share international research leadership in the fields of blue biotechnology, coastal remediation and new product commercialisation . Initially, there will be an exchange of PhD students between Tauranga and Yantai and an industry conference will be held in Tauranga later this year. Establishing a relationship between Korea 's national marine research institute and the University of Waikato's coastal marine group to undertake cooperation around sustainable urban coasts, with the potential for future student exchange. Signing a cooperation agreement between Tauranga Intermediate and Yantai No. 2 Middle School in China with the aim of boosting the international programme, including student exchanges. Initiating a strategic partnership, signed last year with Suzhou Industrial Park Education Bureau, to receive international students from Suzhou. Opening a Tauranga photography exhibition in Yantai to promote Tauranga as a destination for education and tourism. Attend ing a major education expo to promote Tauranga as a destination for international students.

Priority One Annual Report 2015-16 Page I 35

78

Financial Statements & Auditor's Report

The financial statements and auditor's report will be available in Priority One's published 2015-16 Annual Report, which will be distributed in October 2016.

Pri ority One Annua l Report 2015-16 Page I 36

79

Company directory

Board of Directors

Chair: Brett Hewlett, Comvita Ltd

Deputy Chair: Sara Lunam, Corporate Services Manager, Port of Tauranga Limited

Mary-Anne Macleod, Chief Executive, Bay of Plenty Regional Council

Scott Adams, Director Commercial Properties, Carrus Corporation

Simon McDonald , Founding Trustee, Hawaiki Rising Voyaging Trust

Adam Hazlett, Managing Director, Modern Office

Steven Saunders, General Manager, Plus Group Horticulture Limited

Kylie van Heerden, Partner, Sharp Tudhope Lawyers

Garry Poole, Chief Executive, Tauranga City Council

Simon Clarke, General Manager Business Solutions & Technology, Trustpower Limited

Miriam Taris, Chief Executive, Western Bay of Plenty District Council

Carol Ward , General Manager Marketing , ZESPRI International

Antoine Coffin , representing the three iwi of Tauranga Moana (Ngati Ranginui , Ngai Te Rangi and Ngati Pukenga)

Auditors

Staples Rodway P 0 Box 743 Tauranga 3140 New Zealand Tel: +64 7 578 2989

Registered Office

Priority One Western Bay of Plenty Incorporated P 0 Box 13057 Level 2, 29 Grey Street Tauranga 3141 New Zealand Tel : +64 7 571 1401 Fax: +64 7 571 1402

Priority One Annua l Report 2015-16 Page I 37

80Council

24 November 2016

Schedule of Payments for the Months of July -September 2016

1. Purpose

The purpose of this report is for the Elected Members to receive the information on payments from ANZ Bank for the months of July, August and September 2016.

2. Background

In accordance with the provisions of the legislation the following payments were made during the months of July, August and September 2016. Computer printouts listing all the vouchers issued over the period will be available for inspection if required.

Payment Summary- July 2016

$ Payment of Accounts -Direct Credits and Cheques from 19,573,152.26 Direct Debits (salary payments) 896,751 .60 Direct Debits (other accounts) 11,500,000.00

TOTAL 31,969,903.86

Payment Summary - August 2016

$ Payment of Accounts -Direct Credits and Cheques f rom 15,788,321.11 Direct Debits (salary payments) 1,334,836. 73 Direct Debits (other accounts) (1.20)

TOTAL 17,123,156.64

Payment Summary- September 2016 $

Payment of Accounts-Direct Credits and Cheques from 5,686,139.73 Direct Debits (salary payments) 1,081,086.81 Direct Debits (other accounts) 9,000,002.00

TOTAL 15,767,228.54

Dian McCall Financial Accountant

A2787395 Page 1

81Sheet9

BANK RECONCILLIATION September 201 6

ANZ Banking Group Accounts

Closing Cash as at 30th September 2016 09 01 01 8003

Bank Statement Balance as at 30th September 2016

Less Unpresented Cheques

Plus Cash on Hand

Less Receipts Cancelled

Reconcilling item

Direct debit to go thru next month

jnl to be done

AP invoices posted in advance

External Transactions

Direct Debits

Closing Cash as at 30th September 2016

Direct Credit and Cheques

Cancelled cheques tota l payments

Direct debits

Salary

Investments

gl direct debit transactions

Cash receipting Balance BIF

Adjustment prior period

Cash receipt alteration

Prepared By:

4, 708,732.56

4 ,708,732.56

977,407.17

1,081,086.81

9,000,000.00

2.00

268818 268819 268821

268823 268824 268825

API268309

API268398

API 266705 cancelled

API 266687 not DD

API 266688 not DD

15,767,228.54 Total for Councillor report

15,767,228.54

18,542,567.35 ____ ~2":',7~7~5~,3:=3~8'-3. 8::-'-1 Total activity (Transaction report) 3,373,899.90

6,149,238. 71

0.00

Checked By: Date:

14-0ct-1 6 2:21 PM

Page 1

6,149,238.71

5,772,370.38

(30,680.35)

485,259.75

(1,1 35,908.1 5 )

5,769.86

(1 ,199.47)

(14.50)

273.29

1,056,543.00

(662.60)

(1,237.50)

(1,275.00 )

6,149,238.71

0.00

0.00

82

BANK RECONCILLIATION AUGUST 2016

Closing Cash as at 31st August 2016

Bank Statement Balance as at 31st August 2016


Plus Cash on Hand


Reconcilling item

Plus External transactions

AP invoices posted in advance

AP invoices not posted

Closing Cash as at 31st August 2016

Direct Credit and Cheques Cancelled cheques total payments Direct debits Salary Investments gl direct debit transactions

Cash receipting Balance B/F

Adjustment prior period Cash receipt alteration

Prepared By:

SheetS


09 01 01 8003

6,475,948.72 8,687.80

6,467,260.92 9,321 ,060.19 1 ,334,836. 73

-1 .20

API 265889 266136 266198

266594 266680 266687 266688

266705 267266 267267 267392

Not paid by DD 266198 266680 266687 266688 266705

API 266290 267613 267614

267615 267616

17,123,156.64 Total for Councillor report 17,123,156.64

17,482,701.58 -------:-..:"3~5"'-9':',5--:4,.;.4 .':'-9~4 Total activity (Transaction report} 3,023,278.88

3,382,823.82

0.00

Checked By: Date:

7-Sep-16 10:58 AM

Page 1

3,382,823.82

3,405,800. 76

(23,772.92 )

14,163.08

2,854.96

1,462.77

(18,848.71 )

(14,767.10)

14,767.10

1 '163.88

3,382,823.82

0.00

0.00

83u BANK RECONCILLIATION JULY 2016

Closing Cash as at 31st July 2016

Bank Statement Balance as at 29th July 2016


Plus Cash on Hand


Reconcilling item

Plus external transactions

Direct debit to go thru next month

jnl to be done

Less AP posted in advance

Closing Cash as at 31st July 2016

Direct Credit and Cheques

Cancelled cheques

total payments

Direct debits

Salary

Investments

gl direct debit transactions

Cash receipting Balance 8/F

Adjustment prior period

Cash receipt alteration

Prepared By:

Sheet?


09 01 01 8003

Unreconciled

item

265935 266164 266371

AP 266~ not DO l<f8

5,225,913.47

5,225,913.47

14,347,238.79 896,751.60

11 ,500,000.00

0.00

31,969,903.86 Total for Councillor report

31,969,903.86

31 ,562,654.67 ______ -4..:.0=-7'-''=-24.;.;9:..;·..:.19=-Total activity (Transaction report)

INT99 duplicated

receipts

3,168,460.63

-1 ,379.16

2,759,832.28

269,833.94

Checked By: Date:

4-Aug-16 3:36 PM

Page 1

3,029,666.22

2, 709,235.71

(32,530.68 }

88,949.44

(1,758.31}

1,203.52

259.25

269,833.94

-5,526 .65

(4,749.50}

4,749.50

3,029,666.22

0.00

0.00

84

Perform a nee Report

3 months ending 30 September 2016

A2784756

Attachment D

Western Bay of Plenty J.Jis,rlct Council

1

85

Results Summary

The following tables provide a high level summary of Council's financial and non financial results for the three months ending 30 September 2016.

Long Term Plan

Non I Financial I Activity Financial Result

A2784756

Corporate Plan

Page

46

48 I Work Environment

Attachment D

Non I Financial Financial

Activity Result

2

86

Leadership- Representation Community Outcome:

Attachment D

• Leaders are informed by the views of residents to make effective decisions which improve our communities and environment, now and for the future.

Representation Work .financial ..... ... .....;.:_:...;.;.f- •

Community Representation

Non financial: There are no projects for the Community Boards.

Financial: No issues.

District Representation

Non financial: All KPis met these activities. Partnership Forums - With the start of a new triennium iwi and hapu will need to re-mandate their representatives for their respective forums, Te Ara Mua is complete. Councils response to Treaty Settlements - Training of staff continues, updates to Councils Policy and Strategy Committee are on hold pending the completion of Local Government elections. Induction programme planning well underway for proposed start date of 17 October 2016 following Local Body elections.


Treasury Management

Non financial: All key indicators achieved.

Financial: Total income is $6k ahead of budget due to external interest income being higher than forecast. Total expenditure is $18k lower than budget due to internal interest recoveries being $109k higher than budget due to 2016 year-end current account and loan balances, and $36k underspend on loan management fees and other operating expenses. This was offset by $114k additional interest expense on external debt

A2784756 ~

87Attachment D

Financial Summary

Variance +I-

Full Yr Full Yr

Actual Revised

Budget Revised

Representation YTD Budget

$'000 0/o $'000

Budget $'000

YTD $'000 $'000

1,907 1,964 Operating Costs 474 455 (19) -4%

3,108 3,165 Total Costs 740 762 21 3%

(502) (502) Total Direct Income (119) (126) (7) -5%

2,606 2,663 Net Cost of Service 622 636 15 2%

0 0 Capital expenditure 0 0 0

A2784756 d

88

Leadership - Planning for the Future Community Outcome:

Attachment D

• In consultation with our communities and guided by our sustainable development approach, we plan for the future.

Planning for the Future

Resource Management Planning

Work PtOclramme

Fimmcial

Non financial: The work programme for the resource management team is progressing well . Work continues on the Te Puke and Katikati Structure Plan reviews. A tranche of plan changes was notified before the elections and will conclude in the New Year. The Resource Management Manager continues to oversee the appeal to the Rangiuru Business Park plan change and is attempting to progress settlement of the ONFL appeal (Matakana Island). The settlement pattern review has been endorsed by partner Councils so implementation (structure planning) commences now.

Financial : Financials are largely on track for Q1 actuals v budget year to date.

Policy & Planning

Non financial: The draft Coastal Erosion policy is completed and will adopted for consultation in the New Year. Similarly, a comprehensive community engagement approach is being developed to launch the WMMP in the New Year. To mark the operative date for the new Dog Control Policy and Bylaw the first in the new series of Wander Dog Club walks was held at TECT and was a resounding success. The Alcohol Ban Bylaw is also operative. The policy development work programme for 2016/17 will be confirmed with the new Council likely before the end of the year. In the mean time work continues on Project Wai Ora, with a Skype meeting recently held with Minister Tolley and MP Scott Simpson present. This project is moving away from infrastructure provision to more of a focus on housing quality (both remediation and development). Planning is underway for the review of concept plans for Precious Reserve, Maramatanga Park and Omokoroa Domain Reserve.

Financial: OPEX year to date is under budget for Q1 and this is largely due to salary savings while 2 x Senior Policy Analyst positions remain vacant.

A2784756 c;

89

Planning for the Future

Infrastructure Planning

Non financial: There are no projects for this activity.


A2784756

Attachment D

h

90Attachment D

Financial Summary

Variance + 1-

Full Yr Full Yr

Actual Revised

Budget Revised

Policy & Planning YTD Budget

$ '000 OJo Budget YTD

$'000 $'000

$'000 $'000

786 848 Operating Costs 131 159 28 17%

1,051 1,113 Total Costs 236 268 31 12%

(13) (13) Total Direct Income (3) (3) 0 0%

1,038 1,100 Net Cost of Service 233 264 31 12%


Resource Management Planning

651 771 Operating Costs 130 120 (10) -8%

883 1,003 Total Costs 184 178 (6) -3%

0 0 Total Direct Income (0) 0 0

883 1,003 Net Cost of Service 183 178 (6) -3%


A2784756 7

91

Building Communities - Communit ies

Community Outcome:

Attachment D

• Social infrastructure (the community facilities, services and networks that help individuals, families, groups and communities) meets the diverse needs of communities; communities are strong and can influence their future .

Communities

Community Development

Non financial: Council CCTV Policy revised. Community Matching Fund was run earlier this year due to elections. Funding is being allocated and a new QMS system completed. Creative Tauranga has a new CE and has changed its name to Creative BOP to better reflect its geographic spread. Tauranga Moana Safe City is now similarly called Tauranga Western Bay Safer Communities. Change is proposed for how this service may run in future . Service delivery contracts have been updated and signed . There are no outstanding issues.

Financial: Financials are on target. There are no outstanding issues.

Community Facilities

Non financial: Work programme has commenced . Te Puna Hall currently waiting outcome of Notice of Requirement, which is with the Commissioner. Te Puke Hall earthquake strengthening will be deferred until 2017/2018 financial year.

Financial: There are no issues with the financials.

Emergency Management

Non financial: National exercise had full participation . Identified learnings to apply to the EOC and recovery areas.


A2784756 Q

92Attachment D

Communities Work

libraries and Service Centres

Non financial: All KPis met or exceeded for these activities. Reconfiguration Barkes Corner public area - initial project scoping completed . Foot traffic and Wi-Fi use steady in libraries and service centres across the district. Katikati Library project - revised budget is $4.5m. Design process underway with planned completion December 2017.

Financial: Barkes Corner overspend due to reversal of 2016 accrual (sick pay) and salaries. All libraries income not met due to allocation of annual service charges in September.

A2784756 a

93Attachment D

Financial Summary

Variance +I-

Full Yr Full Yr

Actual Revised

Budget Revised Community Development &

YTD Budget

$'000 0/o $'000

Budget Grants $'000

YTD $'000 $ '000

1,156 1,156 Operating Costs 427 309 (118) -38%

1,425 1,425 Total Costs 525 376 (149) -40%


1,377 1,377 Net Cost of Service 467 364 (103) -28%


Emergency Management

465 465 Operating Costs 38 36 (2) -6%

597 597 Total Costs 77 69 (8) -12%

(91) (91) Total Direct Income ( 45) (43) 2 5%

506 506 Net Cost of Service 32 26 (6) -24%


A2784756 H l

94Attachment D

Variance +I-

Full Yr Full Yr

Actual Revised

Budget Revised Information Centres YTD Budget $'000 0/o $'000

Budget $'000 YTD

$'000 $'000

1,827 1,840 Operating Costs 472 403 (69) -17%

2,807 2,820 Total Costs 831 672 (159) -24%

(2,442) (2,442) Total Direct Income (463) (451) 11 3%


3,811 3,840 Capital expenditure 75 71 (4) -6%

Cemeteries

71 71 Operating Costs 5 18 13 72%

150 150 Total Costs 25 38 13 34%


75 75 Net Cost of Service 17 20 3 14%


Community Halls

365 365 Operating Costs 146 135 (12) -9%

411 411 Total Costs 161 143 (18) -13%




A2784756 11

95Attachment D

Variance+ /-

Full Yr Full Yr

Actual Revised Budget

Revised Pensioner Housing YTD BudgetYTD $'000 0/o Budget

$'000 $ '000 $'000 $'000

275 275 Operating Costs 105 99 (6) -6%

498 498 Total Costs 155 155 0 0%




Community I nfrastructure Support

0 0 Operating Costs 0 0 0

(1) (1) Total Costs (0) (0) (0) -48%


(3) (3) Net Cost of Service (1) (1) 0 1%


A2784756 11

96

Building Communities- Recreation & Leisure Community Outcome:

Attachment D

• Recreation and leisure facilities are well planned and safe to meet the diverse and changing needs of our community.

Recreation and Leisure

Coastal and Marine Structures

Non financial: Year two of the Coastal and Marine renewals contract is on track. Currently waiting for H5 treated timber to complete Kauri Point Jetty upgrade.

Financial: Depreciation costs a little higher then forecast for the first quarter. Maintenance costs over budget for period. This is a cash flow matter that will balance out in the next quarter. Capex budget within tolerances.

Recreation Reserves and Facilities

Non financial: Projects are progressing in accordance with Business Plan milestones. Annual spraying of prickle weed and sports turf has been completed . Spring growth along with the wet weather and ground conditions are providing some challenges for the reserves maintenance contractor. Swimming pools on target for opening in October. Te Puke pool has been repainted .

Financial: Reserve Financial Contributions are tracking ahead of forecast income ($246,652) (Budget YTD $-422,592 vs Actual YTD $-669,244) . Operating and Capital expenditure budgets are within tolerances. Miscellaneous income received from various grants for projects e.g. Jubilee lighting upgrade.

Sub Regional Reserves

Non financial: Daryll Hall the new Park Ranger started with the team on 1 August 2016 and is settling in to role of Park Ranger. The Remote Access Weather Station (RAWS) has been installed and is providing data that will be used to calculate the local Fire Weather Index. "The Obstacle Run" organised by Mule Event Management took place on 8th October and attracted over 300 competitors. This was the first truly commercial race event staged at the Park and highlighted the potential for this and other commercially organised events at the Park. Clubs are

A2784756 1 ~

97Attachment D

Recreation and Leisure

seeking to complete development of the CASS ranges in preparation for a major competition in the New Year.

Financial: Operating and Capital expenditure budgets within tolerances, the exception being forestry income resulting from the recent harvesting operations. This revenue is ring fenced for future forestry operations identified in the approved Forestry Management Plan.

Financial Summary -

Variance + 1-

Full Yr Full Yr

Actual Revised

Budget Revised

Recreation Reserves & Facilities YTD Budget

$'000 0/o $'000 Budget

$'000 YTD

$'000 $'000

2,686 2,777 Operating Costs 564 2,829 227 8%

4,660 4,660 Total Costs 4,452 980 319 7%

(2,254) (2,254) Total Direct Income (768) (526) 755 -36%

2,570 2,405 Net Cost of Service 1,588 454 1,073 40%

2,468 2,800 Capital expenditure 190 218 599 32%

Coastal & Marine Structures

202 202 Operating Costs 196 0 44 18%

902 781 Total Costs 200 147 126 13%

0 0 Total Direct Income 0 0 0


400 627 Capital expenditure 44 0 14 2%

A2784756 14

98Attachment D

Variance+/-

Full Yr Full Yr

Actual Revised

Budget Revised

Sub-Regional Parks YTD Budget

$ '000 0/o $'000

Budget $ '000

YTD $ '000 $ '000

749 1,249 Operating Costs 533 147 715 57%

925 1,420 Total Costs 218 1,420 731 51%


473 598 Net Cost of Service (160) 189 830 139%

645 645 Capital expenditure 53 247 177 72% --

A2784756 1 t;

99

Building Communities- Regulatory Community Outcome:

• Regulatory services support community wellbeing.

Regulatory

Animal Control

Attachment D

Non financial : Known dog population has increased in last quarter with close to 9000 dogs now on Council records. Focus in the quarter has been on ensuring dog registration is completed by all dog owners. The new dog policy and bylaw was also adopted by Council on 25 August 2016, communications and media releases have been well received with dog owners satisfied that the policy and bylaw reflects their needs. A good outcome from the comprehensive engagement programme undertaken as part of the review.

Financial: Both OPEX and revenue are tracking to budget at the end of the first quarter, noting however that corporate overheads are $20k ahead of budget.

Building & Health Services

Non financial: Total building consents approved (344) of which new dwellings (131) received for the year indicate a steady increase on the same period last year. A similar increase is identified for inspections visits (2959 this year versus 2019 for the same period last year) reflecting the increase in building activity. 66% (10/15) of service requests were actioned within agreed timeframes against a target of 90%. Building consent applications processed within the statutory timeframe of 20 working days was 98% (337/344). The activity continues to experience sustained growth across the district with a number of subdivisions under development or coming on-line which will see the consent transactions continue at a high level.

Financial: The net cost of service for the building inspections cost centre is tracking slightly behind budget but this is primarily as a result of actual overheads for Q1 being significantly ahead of budget year to date. The net cost of service for the building consent application cost centre is currently ahead of budget year to date driven largely by user fees being well ahead of budget. It is important to note however that consultant spend is tracking over budget and similarly, overheads for Q1 are tracking ahead of budget. The net cost of service for the BWOF cost centre is on track.

A2784756 1h

100Attachment D

Regulatory ( cont'd)

Compliance

Non financial: Inspections and application numbers are as per work programme. Parking services activities have been impacted with staff member recovering from surgery, additional resource was providing cover temporarily.

Financial: Registered premises revenue ahead of target due to number of premises transitioning to Food Control Plans - incurring additional officer and admin fees. Compliance fees increase due to allocation of RC monitoring fees to compliance consents activity. Parking revenue down for quarter based on resource.

Resource Consents

Non financial : 94% statutory performance for non-notified land use and subdivision consent applications (109/116) processed within 20 working days. One Appeal (Z Energy) submitted to Environment Court was heard in July 2016 and the Court granted the Appeal against Councils decision to refuse consent. Survey Plan (s.223 RMA approvals) met at 137/37 (100%) in 10 working days. 97.8% (88/90) of Project Information Memorandums (PIMs) completed in statutory time. 100% (283/283) of Land Information Memorandums (LIMs) have been completed in statutory time.

Financial : All financial results are generally positive with net costs of service favourable. Incomes for subdivision consents and Survey Plan (5.223) approvals are $24k above budget. Income received on LIMs is tracking to the budget reflective of the continually high level of property enquiries throughout the region as are PIMs at $25k above budget. Legal and consultant costs for the Z Energy Appeal exceeded those budgeted. Use of consultants for peak work overflows has been necessary whilst we recruit for additional permanent staff to cover the increased consent workload. Overall the activity maintains a positive balance.

A2784756 17

101Attachment D

Financial Summary

Variance + 1-

Full Yr. Full Yr.

Actual Revised

Budget Revised

Regulatory - Resource Consents YTD Budget

$'000 0/o $'000

Budget $'000

YTD $'000 $'000

1,027 1,027 Operating Costs 286 242 (45) -18%

1,529 1,529 Total Costs 437 367 (70) -19%




Regulatory - Building & Health

2,330 2,330 Operating Costs 580 542 (38) -7%

3,062 3,062 Total Costs 874 725 (149) -21%




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102Attachment D

I

Variance+/-

Full Yr Full Yr

Actual Revised

Budget Revised

Regulatory- Animal Control YTD Budget

$'000 0/o $'000

Budget $'000

YTD $'000 $'000

434 434 Operating Costs 91 103 12 12%

701 701 Total Costs 181 170 (12) -7%


162 162 Net Cost of Service (323) (315) 8 3%


Regulatory - Compliance

561 561 Operating Costs 123 134 11 8%

731 731 Total Costs 201 177 (24) -14%




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103

Building Communities- Stormwater Network Community Outcome:

Attachment D

• Stormwater approaches are innovative, affordable and sustainable and lead to a reduction in flooding events.

Stormwater Network

Stormwater Network

Non financial: Projects generally on track with no issues to report. Waihi Beach two-mile creek project (downstream) tenders received and being evaluated.

Financial: Stormwater income on track for first quarter, with expenditure down on budget due in part to no major storm events requiring additional expenditure.

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104Attachment D

Financial Summary

Variance + 1-

Full Yr full Yr

Actual Revised

Budget Revised Stormwater YTD

Budget $'000 0/o

Budget YTD $'000

$'000 $'000

$'000 I

778 778 Operating Costs 169 250 81 33% i

3,998 3,998 Total Costs 928 1,055 127 12%

(4,805) (4,805) Total Direct Income (1,136) (1,133) 4 0% I !



Waihi Beach Coastal Protection

25 25 Operating Costs 0 6 6

124 124 Total Costs 26 31 5 15%

(109) (109) Total Direct Income ( 43) (27) 16 58%



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105

Building Communities - Transportation

Community Outcome:

Attachment D

• Transportation networks are safe, affordable, sustainable and planned to meet our Community's needs and support economic development.

Transportation

Reading

Non financial: Financial Assistance claims being submitted as required

Financial: On target.

Network Development

Non financial: Waihi Beach Community Roading Projects: The Board is reprioritising projects. The focus is on cycleways. Katikati Community Roading Projects : Beach Road trees planted. Cryptomerias along Fairview Road removed and will be replaced with maples. A number of Katikati footpath priorities are committed to be finished by December 2016. Stewart Street widening has been added to the list for consideration. Omokoroa Community Roading Projects: Western Ave walkwayjcycleway complete. The bridge remains to be completed. Te Puke Community Roading Projects: Funding committed to Town Centre loan. Maketu Community Roading Projects: Town Point Road footpath authorised, but delayed due to the requirement for a HNZ Authorisation . Rural Roading: Cycleways being planned. Omokoroa to Tauranga cycleway design in progress. Waihi to Waihi Beach land access is under negotiation.

Financial: Maketu footpath project to be partly covered by the ONMC footpath allocation and will consume the local community roading allocation .

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106Attachment D

Transportation

Network Optimisation

Non financial: Widening of Waihi Beach Road near boundary started and pavement works will take place this summer. Omokoroa Road upgrade from SH2 to railway being negotiated with Westlink. Omokoroa Road rehabilitation from Western Avenue to Tralee Street in design stage and programmed for late summer 2016/17. Burd Road seal extension started after delays dealing with obstructive landowner.

Financial : On target

Environmental Mitigation

Non financial: Ongoing.

Financial: Vegetation budget will be fully committed dealing with nuisance or dangerous trees. Code 305101 004: insufficient budget for lump sum component of urban vegetation but budget is available to offset in the other maintenance categories.

Transportation Health & Safety

Non financial: Minor Improvement projects ongoing with capital works as per approved programme. Community Safety programme progressing well. School zone safety trial receiving NZTA funding has been installed.

Financial: On target.

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107Attachment D

Financial Summary

Variance+/-

Full Yr Full Yr

Actual Revised

Budget Revised

Transportation YTD Budget

$'000 0/o Budget YTD $'000

$'000 $'000 $'000

8,783 8,881 Operating Costs 2,146 1,898 (247)

19,361 19,460 Total Costs 4,438 4,501 64

(23,164) (23,164) Total Direct Income (5,781) (5,738) 43

(3,803) (3,704) Net Cost of Service (1,343) (1,236) 107

17,954 19,728 Capital expenditure 1,543 1,354 (189)

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108

Building Communities- Water Supply Community Outcome:

• Water supply is provided to our Community in a sustainable manner.

Water Supply

Council Water Supply

Attachment D

Financial

Non financial: projects tracking well. Only one project of concern being Eastern water supply upgrade to the Pongakawa water treatment plant. additional trial is underway to determine what level of filtration and treatment will be required to the 2nd Bore due to elevated levels of minerals within the ground water.

Financial : On track with budgets for operational costs and projected income. No issues to report at this point.

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109Attachment D

Financial Summary

Variance + 1-

Full Yr Full Yr

Actual Revised

Budget Revised

Western Water Supply YTD Budget

$'000 0/o $'000

Budget $'000

YTD $'000 $'000

1,617 1,617 Operating Costs 477 459 (18) -4%

3,587 3,587 Total Costs 1,070 952 (118) -12%

(4,250) ( 4,250) Total Direct Income (1,179) (1,050) 129 12%


2,248 2,805 Capital expenditure 477 465 (12) -3%

Central Water Supply

1,219 1,219 Operating Costs 263 270 7 3%

2,781 2,781 Total Costs 681 661 (20) -3%



767 767 Capital expenditure (25) 5 30 596%

Eastern Water Supply

1,765 1,765 Operating Costs 470 434 (36) -8%

4,296 4,296 Total Costs 1,036 1,067 30 3%

(3,935) (3,935) Total Direct Income (1,017) (979) 38 4%



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110

Protecting the Environment- Natural Environment

Community Outcome:

• Areas of our natural environment with important environmental, cultural and heritage values are protected.

Natural Environment

Environmental Protection

Non financial: These projects and activities are on course. Fencing subsidies grants have been allocated.

Financial: There are no financial issues to report.

Financial Summary

Variance +I-

Full Yr Full Yr

Actual Revised

Budget Revised

Natural Environment YTD Budget

$'000 0/o $'000

Budget $'000

YTD $'000 $'000

695 695 Operating Costs 78 167 89 54%

700 700 Total Costs 94 168 74 44%




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Attachment D

}7

111

Protecting the Environment- Waste Management Community Outcomes:

• Wastewater services are well planned and maintained to ensure a clean and healthy environment. • Efficient waste management practices minimise environmental harm and waste.

Waste Management

Wastewater

Attachment D

Non financial: Operationally on track for the first quarter with no major issues to report. Resource consent applications for Katikati and Te Puke wastewater schemes currently being reviewed by BOPRC. Expectations that preliminary consent conditions will be provided to WBOPDC by December for Katikati and next year forTe Puke.

Financial : Income better than planned by 9% with operational costs on track.

Solid Waste

Non financial : Recycling centres at each location are operating well with steady increase in monthly usage. An update on WBOPDC Waste Management and Minimisation Plan will be reported back to Councillors in the coming months seeking and endorsing direction on a number of items. Educational activities in the community such as paper for trees and worm farm workshops are currently underway.

Financial: Tracking under budget with no issues to report this quarter. Commodity (on selling of products collected at recycling centres) income still showing positive revenue income.

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112Attachment D

Financial Summary

Variance + /-

Full Yr Full Yr Actual

Revised

Budget Revised

Waihi Beach Wastewater YTD Budget

$'000 0/o $'000

Budget $'000

YTD $'000 $'000

1,111 1,116 Operating Costs 343 347 5 1%

3,302 3,307 Total Costs 931 895 (36) -4%




Katikati Wastewater

1,082 1,087 Operating Costs 234 164 (70) -43%

2,182 2,187 Total Costs 503 439 (64) -15%

(2,344) (2,344) Total Direct Income (581) (581) (0) 0%

(162) (157) Net Cost of Service (78) (142) (64) -45%

649 649 Capital expenditure 42 34 (8) -25%

Te Puke Wastewater

846 851 Operating Costs 184 212 29 14%

1,721 1,726 Total Costs 397 431 34 8%


(1,437) (1,432) Net Cost of Service (476) (358) 117 33%

725 771 Capital expenditure 96 94 (2) -2%

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113Attachment D

Variance + 1-

Full Yr Full Yr

Actual Revised

Budget Revised

Omokoroa Wastewater YTD Budget

$'000 0/o $'000

Budget $'000

YTD $'000 $'000

788 815 Operating Costs 173 185 12 6%

4,103 4,130 Total Costs 1,006 1,013 7 1%



2,804 2,804 Capital expenditure 3 0 (3)

Maketu Wastewater

477 477 Operating Costs 144 118 (25) -22%

1,257 1,257 Total Costs 333 313 (20) -6%


777 777 Net Cost of Service 201 193 (7) 4%


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114Attachment D

Variance +I-

Full Yr Full Yr

Actual Revised

Budget Revised District Solid Waste YTD Budget

$'000 0/o $'000

Budget $'000

YTD $'000 $'000

565 565 Operating Costs 58 96 38 39%

706 706 Total Costs 95 132 36 28%




Western Solid Waste

333 333 Operating Costs 131 76 (55) -72%

470 470 Total Costs 198 110 (87) -79%



0 0 Capital expenditure (39) 0 39

Eastern Solid Waste

347 347 Operating Costs 56 84 28 33%

517 517 Total Costs 119 126 7 6%

( 441) (441) Total Direct Income (113) (110) 3 2%



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115Attachment D

Variance + 1-

Full Yr Full Yr

Actual Revised

Budget Revised

Omokoroa Solid Waste YTD Budget

$'000 0/o Budget YTD

$'000 $'000

$'000 $'000


159 159 Total Costs 25 40 15 37%




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116

Supporting our Economy- Economic

Community Outcome:

Attachment D

• To encourage the sustainable use of local resources in a way which strengthens economic opportunit ies and improves social outcomes.

Economic

Economic Development

Non financial: Visitor information centres are busy as tourism booms. Changes in boards and Chief Executive roles for Pl and Tourism BOP. Te Puke EDG contract modified to concentrate exclusively on economic development initiatives and re-signed. New manager for Waihi Beach Events and Promotions organisation . Service Delivery Contracts signed. No other issues to report.

Financial : On target - no issues.

Financial Summary

Variance+/-

Full Yr Full Yr

Actual Revised

Budget Revised

Economic YTD Budget $'000 0/o

$'000 Budget

$ '000 YTD

$'000 $'000

606 606 Operating Costs 228 178 (49) -28%

649 649 Total Costs 261 189 (72) -38%



267 267 Capital expenditure (1) 1 2 249%

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117

Customer Service

Council Outcome:

Attachment D

• Customers are provided with an environment where their needs are understood, information is accurate and user friend ly, and advice and services are provided in a timely and professional manner.

Customer Service

Customer Identification & Needs Analysis

Non financial: Survey review work ready for next phase. Other projects not started yet.

Financial: No direct budget for this activity.

Service Delivery Processes & Standards

Work Programme

Non financial: An increase in complaints in line with increased customer contacts and general increase in demand for services.

Financial: N/A

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118

Community Relationships

Council Outcome:

• Residents and all key communities of interest are effectively engaged .

Community Relationships

Communication

Attachment D

Non financial: Have signalled some issues in terms of Communications resourcing . Joint local body election campaign communications project completed .


Maori

Non financial: Cultural training is ongoing with new staff and contractors.

Financial : There is no separate budget for this activity.

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119

Internal Processes -Asset Management Council Outcome:

• Council's assets are efficiently, effectively and proactively managed.

Asset Management

Asset Management

Attachment D

Non financial: Veolia contract for utilities is working well and customer compliments are being received on a regular basis.

Financial: No issues, budgets are underspent but this is due to timing issues.

Corporate Property

Non Financial: Work programme on track. The preferred draftsperson/architect selected has been selected for the animal shelters. Work to be undertaken prior to Christmas which is later than anticipated due to current building market.

Financial: Most financial cost centres are within financial thresholds however the property purchase in Omokoroa has created a variance due to the phasing of the budget.

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120Attachment D

Financial Summary

Variance+/-

Full Yr Full Yr

Actual Revised

Budget Revised

Corporate Assets YTD Budget

$'000 0/o $'000

Budget $'000

YTD $'000 $'000

5,858 5,858 Operating Costs 226 214 (13) -6%

516 516 Total Costs 521 421 (100) -24%

0 0 Total Direct Income (96) (94) 1 1%


614 614 Capital expenditure 1,067 27 (1,040) 3795%

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121

Internal Processes- Key Business Processes

Council Outcome:

• Systems and processes represent value for money and meet the business needs of the organisation .

Key Business Processes

Quality Management

Attachment D

Non financial: Working on the QMS transition to the new standard IS09001:2015. QMS reviews and audits working wel l.


Information Management

Non financial : Business solutions team attended Agile workshop. Implemented Kanban boards and weekly stand up meetings with the team . Review business improvement initiatives for presentation to MT. Reviewed programme of work and focus on online projects - LIMs and Building Consent Applications. Continued working with Datacom on programme management of projects. Telecommunications as a Service agreement with Spark underway. Support function going well, on call arrangement fixed for one year.

Financial: No budget issues

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122Attachment D

Key Business Processes

Procurement

Non financial : District valuation process is underway with results to be known in late November. Internal audit of the procurement process has also been commenced results to be reported in November.

Financial: There is no budget for this activity.

Financial Management

Non financial : All projects are target met and on track

Financial: Corporate Finance operating costs were $70k under forecast which includes $47k for audit fees due to budget timing, and $11k for bank charges. This is offset by $70k reduction in overheads recovered. _ Financial services costs were $12k ahead of budget including salaries $7k ahead and overhead recovered $6k under budget. Accounting Operations costs were $43k under budget with valuation fees being $41k under, this relates to the timing of the district valuation which will completed in December 2016. This is offset by $21k reduction in overhead recovered. Commission income budgeted for $32k has not been received. This is from BOPRC and is not due until November.

Continuous Improvement

Non financial : Four of five projects are target met. Timesheet project is partial met due to resource constraints. Work still progressing.


A2784756 ~Q

123Attachment D

Financial Summary

Variance+/-

Full Yr Full Yr

Actual Revised

Budget Revised

Financial Services YTD Budget

$'000 0/o $'000

Budget $'000

YTD $'000 $'000

1J45 1,745 Operating Costs 308 416 107 26%

138 138 Total Costs 3 14 10 75%




Treasury Operations


(271) (271) Total Costs (85) (68) 18 26%




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124Attachment D

Variance+/-

Full Yr Full Yr Actual Revised

Budget Revised Rate appropriat ion YTD Budget

$ '000 0/o $'000

Budget $'000

YTD $'000 $'000

1,370 1,370 Operating Costs 603 560 (43) -8%

1,370 1,370 Total Costs 603 560 (43) -8%

(21,675) (21 ,675) Total Direct Income (5,760) (5,569) 192 3%

(20,305) (20,305) Net Cost of Service (5,158) (5,009) 149 3%


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125

Internal Processes- Work Effectively with Others Council Outcome:

• Collaboration with other organisations achieves improved community outcomes.

Work Effectively with Others

Planning & Working in Partnership

Non financial:

Attachment D

Work P!!flii'!I!Rme

Financial

Local Government Futures: indicative Business Cases for Water/Wastewater and Transportation were approved by the Governance Group on 6 September 2016.

Financial: There is no separate budget for this activity.

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126

Internal Processes- Risk Management Council Outcome:

• Risks are identified, minimised or mitigated.

Risk Management

Risk Management

Attachment D

Work ~rogramme

Financial

Non financial: Four of five KPis are target met. Business continuity planning is currently partial met as focus has been diverted to S17a review work. Work to recommence in October/November with first draft completed in December 2016.


Occupational Safety & Health

Non financial: The WSMP recommendations are being finalised . The safety programme is on track. Incident reporting continues to be steady through the Vault system. The hazard to risk project is well underway. The hazard to risk project should be completed by December 2016. The safety committee are working well together.

Financial : on track.

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127

Learning & Innovation- Staff Knowledge & Skills Council Outcome:

• Knowledgeable and skilled workforce enhances organisational capability and effectiveness.

Staff Knowledge & Skills

Capacity & Recruitment

Attachment D

Work Financial

Non financial: Four new staff were appointed and inducted into Council. Three staff exited Council. The wellness programme is now underway at Council, which includes a range of physical activities, fundraisers and fresh fruit; this month the strut and stroll walking participants commenced. A SOLGM management team has been finalised. A new SOLGM accelerated management learning training course has commenced, this training is aimed at new leaders and emerging leaders. Succession planning has commenced.


Clear Accountabilities & Responsibility

Non financial: Year end performance appraisals completed.


Training & Development

Non financial: The SOLGM management challenge team for 2017 has been finalised. The 2016 SOLGM accelerated leadership programme has commenced with three WB attendees. We are currently investigating a stress management training course. GM Policy, Planning & Regulatory will attend a senior leadership programme through SOLGM.

Financial: The training budget forms part of the Human Resources budget.

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128Attachment D

Financial Summary

Variance + 1-

Full Yr Full Yr

Actual Revised

Budget Revised

Human Resource Services YTD Budget

$'000 0/o $'000

Budget $'000

YTD $'000 $'000

762 762 Operating Costs 225 190 (35) -18%

0 0 Total Costs 0 0 0

0 0 Total Direct Income 0 0 0

0 0 Net Cost of Service 0 0 0


Note: Operating costs for this activity are recovered through overhead allocations, therefore total costs are $nil.

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129

Learning & Innovation- Institutional Knowledge Council Outcome:

• Institutional knowledge is captured, shared and utilised.

Institutional Knowledge

Knowledge Management

Attachment D

Work Financial -rl~wnu.ft'lliil Non financial: Knowledge management toolkit operating effectively for new staff and those resigned. Further roll out to all staff to be completed.


Information Utilisation

Non financial: Building consent scanning contract in place with PBS for scanning completed files. Jordan's contract extended for 6 months until March 2017. Process for managing building consent applications under review and will be done in conjunction with the online building consent application project. Subdivision contract to be prepared to go to the market. Objective upgrade complete 16 October 2016. No operational issues.


Alignment & Monitoring

Non financial: 2016/17 Business Plan completed and available on the intranet. Reporting for the quarter ending 30 September 2016 has commenced.


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130Attachment D

Financial Summary

Variance + 1-

Full Yr Full Yr

Actual Revised

Budget Revised

Information Services YTD Budget

$'000 0/o Budget YTD $'000

$'000 $'000 $'000

3,080 3,080 Operating Costs 785 756 (29) -4%

664 664 Total Costs 23 159 136 85%




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131

Learning & Innovation -Work Environment Council Outcome:

• The Council is recognised as a good employer that provides a motivating work environment.

Work Environment

Motivating Environment

Non financial : Compliance with corporate standards on track.


All One Team

Attachment D

F'mancial

Non financial: Work has commenced on the 2016/17 work programme. There are some timing issues however it is anticipated that 90% of the work programme will be achieved.


Being Valued

Non financial: There are some delays in the work programme. The Kenexa staff survey has been completed, results to be collated .


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