the following community outcomes:
• Our communities have access to a range of social, cultural, educational and recreational facilities and activities.
• Our region is supported by an innovative and sustainable economy.
OUR GOAL
To undertake commercial and semi-commercial activities that meet user needs, provide a safe and compliant working environment, and that are financially sustainable.
COUNCIL ENTERPRISES
Fully achieved Achieved within 5% Not achieved Not measured
OUTCOME 2020 TARGET 2020 RESULT 2019 RESULT HOW DID WE PERFORM Commercial assets are managed prudently to provide a financial return for the benefit of the District’s ratepayers
Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) for Port Tarakohe will provide adequate funding cover
0.7 -0.1 0.5 The main reason for lower
earnings in 2019/2020 was a timing difference for $225,000 of professional fees which were incurred during the year, but funded by the Provincial Growth Fund in the following year. However, wharfage income was also lower than budget as Covid-19 restricted access to key markets for mussel farmers.
EBITDA for holiday parks and campgrounds will provide for increasing funding cover
1.5 0.6 1.2 EBITDA was significantly lower
than budget due to Covid-19 related rent relief provided to our leased holiday parks, plus the direct impact of Covid-19 on our managed holiday park.
OUR LEVELS OF SERVICE AND HOW WE MEASURE PROGRESS
OUTCOME 2020 TARGET 2020 RESULT 2019 RESULT HOW DID WE PERFORM EBITDA for
commercial properties will provide adequate funding cover
0.9 1.0 1.2 Commercial properties did
provide adequate funding cover, despite some Covid-19 related rent relief for hospitality and retail tenants.
Net return on forestry assets provide a commercial outcome
9.0% 9.1% 6.3% The return from forestry
was above the target due to additional harvesting and higher than budgeted average log prices.
OUR LEVELS OF SERVICE AND HOW WE MEASURE PROGRESS (CONT.)
COUNCIL ENTERPRISES
MAJOR ACTIVITIES
The Council Enterprises group of activities involves the management, maintenance and renewals of Council’s investments in forestry, Port Tarakohe and Māpua, Motueka and Tākaka aerodromes, four holiday parks and various commercial property.
The major projects for Council Enterprises for 2019/2020 have included:
PROJECT LTP BUDGET (YEARS
EXPENDITURE PLANNED) 2019/2020 BUDGET ACTUAL 2019/2020 Port Tarakohe New Wharf
Construction
$2,220,000|
(Y1 and Y8)
$0 Council spent $0 in the 2019/2020 year. Budget of $1,020,000 was carried forward from the 2018/2019 year into 2019/2020 year. The project is delayed pending the decision on a related application for government funding.
Māpua Shed 5 Structural Works
$255,000 (Y1)
$0 Council spent $245,993 in the
2019/2020 year. Budget of
$220,866 was carried forward from the 2018/2019 year into 2019/2020 year. Several small variations to the original scope increased the cost by $25,127.
Māpua Wharf Capital Works
$0 $350,000 Council spent $102,211 in the
2019/2020 year. Budget of $50,000 was carried forward from the 2018/2019 year into 2019/2020 year. The project was approved to repair and upgrade Shed 2. The project commenced in May 2020 and was ongoing at the year-end.
COUNCIL ENTERPRISES
PROJECT LTP BUDGET (YEARS
EXPENDITURE PLANNED) 2019/2020 BUDGET ACTUAL 2019/2020 Collingwood
Holiday Park Upgrade
$541,000 (Y1)
$0 Council spent $499,521 in the 2019/2020 year. Budget of $450,000 was carried forward from the 2018/2019 year into 2019/2020 year. Overspend of $49,521 offset by underspend of $52,122 on renewals below.
Collingwood Holiday Park Renewals
$566,000 (Y1 – 10)
$52,122 Council spent $0 in the 2019/2020 year.
Budget of $30,474 was carried forward from the 2018/2019 year into 2019/2020 year.
Pōhara Holiday Park Capital Buyback
$541,000 (Y1)
$0 Council spent $540,000 in the 2019/2020 year. Budget of $540,000 was carried forward from the 2018/2019 year into 2019/2020 year.
Pōhara Holiday Park Renewals
$680,000 (Y1 – 10)
$62,546 Council spent $0 in the 2019/2020 year.
Budget of $15,000 was carried forward from the 2018/2019 year into 2019/2020 year.
Murchison Riverside Holiday Park Upgrade
$167,000 (Y2)
$166,790 Council spent $0 in the 2019/2020 year.
Project was delayed due to Covid-19.
Murchison Riverside Holiday Park Renewals
$556,000 (Y1 – 10)
$52,122 Council spent $0 in the 2019/2020 year.
Budget of $51,000 was carried forward from the 2018/2019 year into 2019/2020 year.
Motueka Holiday Park Renewals
$1,133,000 (Y1 – 10)
$104,244 Council spent $118,743 in the 2019/2020 year. Budget of $98,087 was carried forward from the 2018/2019 year into 2019/2020 year.
MAJOR ACTIVITIES (CONT.)
COUNCIL ENTERPRISES
FUNDING IMPACT STATEMENT
For the year ended 30 June 2020BUDGET 2018/2019
$000
ACTUAL 2018/2019
$000 COUNCIL ENTERPRISES
ACTUAL 2019/2020
$000
BUDGET 2019/2020
$000 % OF BUDGET
SOURCES OF OPERATING FUNDING
(217) (217) General rates, uniform annual general charges, rates penalties (218) (215) 101%
– – Targeted rates – – –
– 210 Subsidies and grants for operating purposes 50 – 100%
1,337 1,051 Fees and charges 769 1,015 76%
– – Internal charges and overheads recovered – – –
8,351 9,690 Local authorities fuel tax, fines, infringement fees, and other receipts 15,083 8,903 169%
9,471 10,734 Total operating funding 15,684 9,703 162%
APPLICATIONS OF OPERATING FUNDING
5,960 7,125 Payments to staff and suppliers 10,985 6,511 169%
441 309 Finance costs 265 349 76%
900 834 Internal charges and overheads applied 905 944 96%
– – Other operating funding applications – – –
7,301 8,268 Total applications of operating funding 12,155 7,804 156%
2,170 2,466 Surplus/(deficit) of operating funding 3,529 1,899 186%
SOURCES OF CAPITAL FUNDING
– – Subsidies and grants for capital expenditure – – –
– – Development and financial contributions – – –
1,874 (445) Increase/(decrease) in debt 467 (31) –1506%
– – Gross proceeds from sale of assets – – –
– – Lump sum contributions – – –
– – Other dedicated capital funding – – –
1,874 (445) Total sources of capital funding 467 (31) –1506%
APPLICATIONS OF CAPITAL FUNDING Capital expenditure
– – • to meet additional demand – – –
2,387 50 • to improve the level of service 1,286 167 770%
291 131 • to replace existing assets 430 621 69%
1,366 1,840 Increase/(decrease) in reserves 2,280 1,080 211%
– – Increase/(decrease) in investments – – –
4,044 2,021 Total applications of capital funding 3,996 1,868 214%
(2,170) (2,466) Surplus/(deficit) of capital funding (3,529) (1,899) 186%
Debt was higher than budget as a direct result of the capital spend being higher than budget. The increase in reserves was a result of higher forestry net income due to a change in the harvesting programme.
This section covers strategic planning, customer services, finance, human resources, information management and health and safety.
Support Services are the internal teams that help Council operate efficiently. Support Services are an essential part of ensuring we operate in an effective and efficient manner, meeting our statutory obligations, and working towards the achievement of community outcomes. These activities are internally focused and do not generally have a direct output to the community, rather they are internal support systems for those activities that do. The Support Service activities have their own business plans which outline the strategic focus for the activity and the major projects proposed.
This group is not classed as a ‘group of activities’ for LTP purposes and no funding impact statement is produced for these activities. However, we set and report against levels of service.