TASMAN DISTRICT COUNCIL

Project Kōkiri - the Nelson Tasman Economic Response and Recovery Plan was released in June 2020 and aims to stimulate the economy, protect and create new jobs and accelerate investment in the region. Working closely with Nelson Regional Development Agency, Nelson Tasman Chamber of Commerce, Nelson City Council, Iwi and the regional government agencies, the Council contributed to the development of Project Kōkiri - the Nelson Tasman Economic Response and Recovery Plan.

PROTECTING AND ENHANCING OUR NATURAL ENVIRONMENT

Te Kanihera o te tai o Aorere kaimahi have also developed their Māori language skills by attending te reo Māori courses. Kua hanga hoki e nga kaimahi he roopu waiata e hui auau ana ki te waiata i nga momo Waiata Maori, ki te ako i te tikanga o nga waiata me nga tikanga me te whai waahi ki nga huihuinga a te Kaunihera.

CLIMATE CHANGE ACTION

Golden Bay Community Committee: From July 2019, Councilor Manawhenua ki Mohua has been invited to attend meetings of the Golden Bay Community Committee, with the right to speak but not to vote. Iwi Councilors and Committee Members: Both the Nelson Sewerage Regional Business Unit and the Nelson-Tasman Regional Business Unit have iwi members with full voting rights.

ENVIRONMENTAL PLANS AND PROJECTS During the year, Council progressed several plans and

A working group of Te Ao Māori staff meets regularly to discuss iwi engagement, current projects affecting iwi and ways to improve awareness and understanding of Te Ao Māori.

2019/2020: A YEAR IN REVIEW

The council has embarked on a full review of its resource management plans and plans to create a single plan called the Tasman Environmental Plan. The current plans - the Tasman Regional Policy Statement and the Tasman Resource Management Plan - provide a blueprint for where and how our communities will grow and how we manage our natural resources.

PROVIDING FOR OUR COMMUNITIES

Developed in conjunction with Nelson City Council, the Plan aims to guide future decision-making to minimize and manage waste in our region. The implementation of the Kotahitanga Mō Te Taiao (KMTT) Alliance Strategy has taken a step forward with the appointment of a program coordinator as part of a relationship between the Alliance and The Nature Conservancy (TNC).

DRINKING WATER SUPPLY AND QUALITY Ensuring a safe and secure water supply for our

The TNC Program Coordinator will provide expertise, connections and potential funding to more effectively enable the successful implementation of the Alliance's strategy and long-term sustainability. The Alliance aims to drive large-scale conservation projects with wider social, cultural and economic outcomes across the Buller, Tasman, Nelson, Marlborough and Kaikōura regions.

GROWTH

Due to the large number of private domestic water boreholes in Motueka and Riwaka, borehole water quality testing began in October 2019 to identify any potential health risks.

GETTING AROUND TASMAN

COMMUNITY SPACES AND PLACES

New playgrounds were completed at Newhaven Crescent in Mārahau and at the Golden Bay Recreation Park (funded by the Golden Bay Shared Recreation Facility Committee). The junior mountain bike track was completed, the athletics track was repaved and the velodrome was lit up.

INFRASTRUCTURE PROJECTS

We began work on reviewing the Moutere-Waimea Reserve Management Plan and the Saxton Field Reserve Management Plan.

PLANNING FOR THE FUTURE

These plans will provide future vision and direction for the management of sports, recreation and play opportunities in these public areas, as well as the natural environment and landscape. The Kingsland Forest Park Development Plan was adopted in July 2020 to guide future planting and recreational use of an area of council land on the flanks of the Barnicoat Range above Richmond.

WORKING TOGETHER WITH OUR COMMUNITY

DELIVERING OUR BUSINESS AS USUAL

OUR NON-FINANCIAL

PERFORMANCE AT A GLANCE

PERFORMANCE HIGHLIGHTS

AREAS FOR IMPROVEMENT

Details of our performance against all our targets and the impact of Covid-19 are provided in Part 4: Financial and Non-Financial Performance of this report.

COVID-19 IMPACTS

KEY FINANCIAL INFORMATION

REPORTING AGAINST OUR FINANCIAL STRATEGY

NET EXTERNAL DEBT

KEY FINANCIAL INFORMATION

RATES AFFORDABILITY

DEBT AFFORDABILITY

FINANCIAL PERFORMANCE SUMMARY

REVENUE AND SAVINGS

2 Total operating income = cash earnings from fees, government grants and subsidies, user fees, interest, dividends, finance and other income and excludes non-government capital contributions (eg developer contributions and owned assets). The definitions contained in our Financial Strategy differ from those applied to the Financial Regulatory Standards reported in our Annual Reports.

PART TWO

COUNCIL VISION AND COMMUNITY

COMMUNITY OUTCOMES

VISION AND MISSION STATEMENT

BACKGROUND

COMMUNITY OUTCOME STATEMENTS

OUR VISION

Thriving communities enjoying the Tasman lifestyle

OUR MISSION STATEMENT

To enhance community wellbeing and quality of life

COUNCIL VISION AND COMMUNITY OUTCOMES

PART THREE

ROLES, COMPLIANCE AND AUDIT

STATEMENT

THE ROLE OF THE ANNUAL REPORT AND FINANCIAL STATEMENTS

STATEMENT OF COMPLIANCE AND RESPONSIBILITY

COMPLIANCE

RESPONSIBILITY

ANNUAL REPORT

ANNUAL PLAN

LONG TERM PLAN

PLANNING THE CYCLE

HOW THE ANNUAL REPORT FITS INTO

COUNCIL’S OVERALL PLANNING FRAMEWORK

INDEPENDENT

AUDITOR’S REPORT

OPINION ON THE AUDITED INFORMATION

REPORT ON THE DISCLOSURE REQUIREMENTS

INDEPENDENT AUDITOR’S REPORT

EMPHASIS OF MATTER – IMPACT OF COVID-19

SENSITIVITY OF THE VALUATION MODEL USED IN THE IMPAIRMENT ASSESSMENT

INVESTMENT PROPERTY

BASIS FOR OUR OPINION ON THE AUDITED INFORMATION

RESPONSIBILITIES OF THE COUNCIL FOR THE AUDITED INFORMATION

RESPONSIBILITIES OF THE AUDITOR FOR THE AUDITED INFORMATION

We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District Council's internal control. We conclude as to the appropriateness of the Board's use of the going concern basis and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the District Board's ability to continue as a going concern concern.

OTHER INFORMATION

We determine the appropriateness of the reported intended levels of service in the activities of the District Council as a reasonable basis for assessing the service levels achieved and reported by the District Council. We communicate with the Council about, among other things, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

INDEPENDENCE

Our conclusions are based on the audit evidence obtained up to the date of our audit report. We evaluate the overall presentation, structure and content of the audited information, including the disclosures, and whether the audited information, where applicable, represents the underlying transactions and events in a manner that achieves a fair presentation.

PART FOUR

FINANCIAL AND NON-FINANCIAL

STATEMENTS OF OBJECTIVES AND SERVICE PERFORMANCE

PREPARATION OF INTERNAL REPORTS

CAPITAL WORKS

ENVIRONMENT AND PLANNING

ENGINEERING

COMMUNITY DEVELOPMENT

GOVERNANCE

COUNCIL ENTERPRISES

RESOURCE MANAGEMENT

MAINTENANCE WORKS

LEGISLATIVE AND FINANCIAL COMPLIANCE

PERFORMANCE MEASURES

FUNDING IMPACT STATEMENTS (FIS)

ENVIRONMENT AND PLANNING

ENVIRONMENTAL MANAGEMENT

WHAT WE DO

WHY WE DO IT

CONTRIBUTION TO COMMUNITY OUTCOMES The Environmental Management activity primarily

OUR GOAL

ENVIRONMENT AND PLANNING – ENVIRONMENTAL MANAGEMENT

OUR LEVELS OF SERVICE AND HOW WE MEASURE PROGRESS

Review of the Tasman Region Policy Statement and consideration of combining it with the TRMP. The main priority at present is the review of the Tasman Regional Policy Statement and Tasman Resource Management Plan.

MAJOR ACTIVITIES

Implementation of the National Policy Statement for Urban Development Capacity and Planning for and Response to Urban Growth Pressures. Customer inquiries also doubled, mostly due to resident inquiries at the Richmond Air shed prompted by the surveillance strategy.

PUBLIC HEALTH AND SAFETY

CONTRIBUTION TO COMMUNITY OUTCOMES The Public Health and Safety activity primarily

ENVIRONMENT AND PLANNING (CONT.)

ENVIRONMENT AND PLANNING – PUBLIC HEALTH AND SAFETY

We will provide animal control services to minimize the danger, distress and nuisance caused by dogs and stray livestock and ensure that all known dogs are recorded and recorded. We will provide maritime administration services to ensure that Tasman's regional waters are safe and accessible and that all known commercial vehicle operators are licensed.

TRANSPORTATION, ROADS AND FOOTPATHS

CONTRIBUTION TO COMMUNITY OUTCOMES The Transportation, Roads and Footpaths activity

ENGINEERING – TRANSPORTATION, ROADS AND FOOTPATHS

Convenience: The quality of travel and aesthetics of our transport network is managed at a level appropriate to the importance of the route and meets community expectations. The Council has an approved Regional Land Transport Plan, which is a high-level plan to guide the management of the Transport, Roads and Trails group of activities.

NEW CAPITAL EXPENDITURE

The Brightwater Town Center project was impacted by the Covid-19 lockdown but is on track for completion in the first half of 2020/2021. New and renewed footpaths – Construction of new footpaths and replacement of existing footpaths in poor condition.

COASTAL STRUCTURES

CONTRIBUTION TO COMMUNITY OUTCOMES The Coastal Structures activity primarily contributes to

ENGINEERING (CONT.)

ENGINEERING – COASTAL STRUCTURES

Increase (decrease) in reserves – the movement in reserves is a reflection of underspending in the activity that increased the surplus.

WATER SUPPLY

CONTRIBUTION TO COMMUNITY OUTCOMES The Water Supply activity primarily contributes to the

ENGINEERING – WATER SUPPLY

We comply with Part 4 (bacterial compliance criteria) of the drinking water standards as determined by the drinking water assessor. It had 14 plants and 15 areas that required compliance with Part 4 of the Drinking Water Standards.

WASTEWATER

CONTRIBUTION TO COMMUNITY OUTCOMES The Wastewater activity primarily contributes to the

ENGINEERING – WASTEWATER

Pumping and reticulation - construction of a new sewage and pumping station to serve the Motueka West area. Headingly Lane Pumping Station and Rising Main Upgrade – upgrading of sewage main and pumping station to provide increased capacity.

STORMWATER

CONTRIBUTION TO COMMUNITY OUTCOMES The Stormwater activity primarily contributes to the

ENGINEERING – STORMWATER

This group of activities includes the ongoing management, maintenance and rehabilitation of the municipality's stormwater network, which includes the provision of systems for the collection, reticulation and drainage of stormwater. Capital Expenditure – Although capital appears to have been overspent, a transfer report has been sent to Council to approve the overspend.

SOLID WASTE

CONTRIBUTION TO COMMUNITY OUTCOMES The Solid Waste activity primarily contributes to the

ENGINEERING – SOLID WASTE

Spending this year included security improvements (including additional CCTV cameras in response to Covid-19), waste fencing at the Richmond site and additional stormwater treatment at the Tākaka Resource Recovery Centre. Work completed this year included pavement resurfacing at the Richmond Resource Recovery Center and four new waste transfer containers.

FLOOD PROTECTION AND RIVER CONTROL WORKS

CONTRIBUTION TO COMMUNITY OUTCOMES The Flood Protection and River Control Works activity

ENGINEERING – FLOOD PROTECTION AND RIVER CONTROL WORKS

This group of activities includes the ongoing management, maintenance and renewal of the Council's flood protection and river regulation assets, including promoting soil conservation and mitigating the damage caused by floods. We also carry out the Council's responsibilities for community communication and partnership to build a sense of community and town pride in the Tasman and build capacity within Tasman community groups.

CONTRIBUTION TO COMMUNITY OUTCOMES The Community Development activity primarily

The Council provides community housing for low income older adults that is affordable, accessible and fit for purpose. Effective community engagement builds trust and understanding in Council's decision-making, while also increasing Council's awareness of issues in the community;.

OUR GOALS

Providing access to a wide range of information relevant to the recreational and learning needs of the community. RESULT FOR 2020 GOAL FOR 2020 RESULT FOR 2019 HOW WE ARE SUCCESSFUL Users of Richmond Aquatic Center facilities report a high level of satisfaction.

CONTRIBUTION TO COMMUNITY OUTCOMES The Governance activity primarily contributes to the

This group of activities includes the management of approximately 2,700 stocked hectares of commercial forest plantations, airports at Motueka and Tākaka, a mix of leased and managed holiday parks in Motueka, Pōhara, Collingwood and Murchison, the management of Port Tarakohe and the management of various commercial property assets. The ownership and management of commercial assets by the Council provides benefits to all users through employment and development of the wider community.

CONTRIBUTION TO COMMUNITY OUTCOMES The Council Enterprises activity primarily contributes to

The World Enterprises group of activities includes the management, maintenance and renewal of Council's investment in forestry, Port Tarakohe and Māpua, Motueka and Tākaka airports, four holiday parks and various commercial properties. This group is not classified as a 'group of activities' for LTP purposes and no funding impact statement has been prepared for these activities.

STRATEGIC PLANNING

CUSTOMER SERVICES

FINANCE

HUMAN RESOURCES

INFORMATION SERVICES AND RECORDS MANAGEMENT

HEALTH AND SAFETY

SUPPORT SERVICES

OUTCOME 2020 SIGN 2020 RESULT 2019 RESULT HOW DID WE PERFORM We responded to customer requests in a timely and professional manner. OUTCOME 2020 SIGN 2020 RESULT 2019 RESULT HOW DID WE PERFORM We provide resolution of most customers' telephone inquiries during the initial conversation with a Customer Service Officer.

PART FIVE

FINANCIAL STATEMENTS

REPORTING ENTITY

OVERHEADS

BUDGET FIGURES

FUNDING IMPACT STATEMENTS

STATEMENT OF

ACCOUNTING POLICIES

They also deviate from GAAP in that funding sources within FIS are disclosed either for operating or capital purposes.

CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

LANDFILL AFTERCARE COSTS

INFRASTRUCTURAL ASSETS

OPERATIONAL ASSETS

STATEMENT OF ACCOUNTING POLICIES

Adjustments have been made to the "unencumbered" land value where there is a designation against the land or the use of the land is restricted due to reserve or endowment status. These adjustments must reflect the negative effect on the value of the land where an owner is unable to use the land more intensively.

CRITICAL JUDGEMENT IN APPLYING COUNCIL’S ACCOUNTING POLICIES

In determining the value of the amortized replacement cost of the asset, direct depreciation is applied. Non-specialized buildings (for example, residential buildings) are valued at fair value using market-based evidence.

CLASSIFICATION OF PROPERTY

Land is valued at fair value using market-based evidence based on its highest and best use with reference to comparable land values.

STATEMENT OF COMPREHENSIVE

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CASHFLOWS

STATEMENT OF CHANGES IN EQUITY

COUNCIL FUNDING IMPACT STATEMENT

PART SIX

NOTES TO FINANCIAL

NOTES TO FINANCIAL STATEMENTS

SUMMARY OF REVENUE AND EXPENDITURE FOR GROUPS OF ACTIVITIES

RATES

RATES RECOGNITION

RATES (CONT.)
OTHER REVENUE
OTHER REVENUE (CONT.)
SUBSIDIES AND GRANTS
FEES AND CHARGES
EMPLOYEE BENEFIT EXPENSES
OTHER EXPENSES

Where a physical asset is acquired for no or nominal consideration, the fair value of the asset received is recognized as income. Assets vested in the Council are recognized as income when control of the asset is obtained (for road and water assets this is when S224 is approved).

GRANT EXPENDITURE

OPERATING LEASE

OTHER EXPENSES (CONT.)

MAINTENANCE

FINANCE EXPENSE AND FINANCE INCOME
CASH AND CASH EQUIVALENTS
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES (CONT.)
DERIVATIVE FINANCIAL INSTRUMENTS

Income taxes related to the surplus or deficit for the period include current taxes and deferred taxes. Deferred taxes are the amount of income tax that must or can be recovered in future periods in respect of temporary differences and unused tax losses.

ACCOUNTING FOR DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Council uses derivative financial instruments to hedge exposure to interest rate risks arising from financing

ACCOUNTING FOR DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES The Board uses derivative financial instruments to hedge exposure to interest rate risks arising from financing.

FAIR VALUE

INTEREST RATE SWAPS

SENSITIVITY ANALYSIS

FINANCIAL ASSETS

Financial assets at fair value through surplus or deficit include financial assets held for trading. After initial recognition, financial assets in this category are measured at fair value, with gains or losses recognized in surplus or deficit on remeasurement.

IMPAIRMENT OF FINANCIAL ASSETS

Gains and losses when an asset is impaired or derecognised are recognized in surplus or deficit. Gains and losses are recognized directly in comprehensive income and expense, except for impairment losses, which are recognized in surplus or deficit.

Loans and other receivables

In the event of impairment, any accumulated loss previously recognized in other comprehensive income and expense will be removed from reserves and recognized in profit or loss, even if the asset is not derecognised. When recognition ceases, the accumulated gain or accumulated loss that was previously recognized in equity is recognized in profit or loss.

Financial assets at fair value through other comprehensive revenue and expense

FINANCIAL ASSETS (CONT.)

Financial assets at fair value through comprehensive income are those that are determined as fair value through comprehensive income or that are not classified in any of the other categories above. The fair value of the unlisted shares in the New Zealand Local Government Insurance Corporation and the New Zealand Local Government Funding Agency are determined by calculating the Tasman District Council's share of the total capital based on the shares held.

NON-CURRENT ASSETS (PROPERTY) HELD FOR SALE

PROPERTY, PLANT AND EQUIPMENT

If this would result in a charge on the balance in the revaluation reserve for assets, this balance is not recognized in other comprehensive income and expense, but is recognized in surplus or deficit. Any subsequent revaluation increase that reverses a previous decrease in value recognized in surplus or deficit will first be recognized in surplus or deficit up to the amount previously charged as an expense, and then in other comprehensive income and expense.

INFRASTRUCTURAL ASSET CLASSES

Revaluation of assets – With the exception of established assets at the initial point of recognition, all valuations for Roading, Threewaters, Waste, Land and Buildings are carried out or reviewed by independent qualified valuers and it is intended that valuations on a three-year cycle . The net revaluation results are credited or debited against other comprehensive income and expenses and are accumulated to an asset revaluation reserve in equity for that class of asset.

ROADS AND BRIDGES, WASTEWATER,

The residual value and useful life of an asset are reviewed at the end of each financial year and adjusted as appropriate. The carrying amount of revalued items is reviewed at each balance sheet date to ensure that these values do not differ materially from fair value.

SOLID WASTE, WATER SUPPLY, STORMWATER, COASTAL STRUCTURES, PORTS AND RIVER

PROPERTY, PLANT AND EQUIPMENT (CONT.)

Roads and bridges were valued at fair value using optimized depreciated replacement cost by Marsh & McLennan Companies as at June 30, 2020. They were valued at optimized depreciated replacement cost by Jones Lang Lasalle IP, Inc.

PROPERTY, PLANT AND EQUIPMENT (CONT.) Buildings (operational and restricted) – Specialised

IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

Value in use for non-cash-generating assets Non-cash-generating assets are those assets that are

Value in use for cash-generating assets

SURPLUS

DEPN 2 WRITE BACK

01 JULY 2019

30 JUNE 2020

01 JULY 2018

30 JUNE 2019

WORK IN PROGRESS

INTANGIBLE ASSETS

IMPAIRMENT

INTANGIBLE ASSETS (CONT.)

FORESTRY ASSETS

DEPRECIATION BY GROUP OF ACTIVITY

NATURE OF FORESTRY ASSETS

ANNUAL REVALUATION

EXPLANATION OF SIGNIFICANT ASSUMPTIONS AND MOVEMENTS

FORESTRY ASSETS (CONT.)

Covid-19 impact - Export log prices were extremely volatile in the March to May 2020 period due to Covid-19 related supply and demand shocks. Prices for exports 'at the wharf gate' rose in May 2020 to levels not seen in the last 3 years due to high Chinese demand following Covid-19 related supply shortages out of New Zealand, but fell significantly in June 2020.

RISK MANAGEMENT

INVESTMENT PROPERTY
INVESTMENT PROPERTY (CONT.)
INVESTMENT IN JOINT VENTURES
INVESTMENT IN JOINT VENTURES (CONT.)

The council's share in net assets, profits and other total income is included after equity. Where the Council deals with a joint venture, profits or losses are eliminated to the extent of the Council's interest in the joint ventures.

ASSETS

Actual and target returns on joint ventures

INTEREST IN JOINT OPERATIONS

His income from the sale of his share of the production arising from the joint operation;. his share in the revenue from the sale of the production of the joint operation; and e.

NELSON REGIONAL SEWERAGE BUSINESS UNIT (NRSBU)

A joint operation is a joint arrangement in which the parties having joint control of the arrangement have rights to the assets and liabilities for the liabilities associated with the arrangement. Joint operations also include operations where their activities are primarily aimed at providing an output to the parties to the joint arrangement (ie the parties are entitled to substantially all of the service potential or economic benefits of the assets).

NELSON TASMAN CIVIL DEFENCE AND EMERGENCY MANAGEMENT (NTCDEM)

NELSON TASMAN REGIONAL LANDFILL BUSINESS UNIT (NTRLBU)

WAIMEA WATER LIMITED (WWL)

INTEREST IN JOINT OPERATIONS (CONT.)

TRADE AND OTHER PAYABLES

PROVISIONS

PROVISION FOR LANDFILL AFTERCARE COSTS

EMPLOYEE BENEFIT LIABILITIES

EMPLOYEE ENTITLEMENTS Short-term benefits

Long-term benefits

Superannuation schemes Defined contribution schemes

EMPLOYEE BENEFIT LIABILITIES (CONT.)

Key assumptions in measuring retirement and long service leave obligations

BORROWINGS

SECURITY
REFINANCING
INTEREST RATES

BORROWINGS (CONT.) D. REPAYABLE PERIOD OF LOANS

FINANCE LEASES
INTERNAL BORROWINGS

REVALUATION RESERVE

ASSET REVALUATION RESERVE

ACCUMULATED EQUITY

Reserves are a component of equity capital that generally represents a specific use to which various parts of equity capital have been allocated.

REVALUATION RESERVE (CONT.)

RESTRICTED AND COUNCIL CREATED RESERVES

RESTRICTED RESERVE REPORTING – OTHER FUNDS

RESTRICTED AND COUNCIL CREATED RESERVES (CONT.)

Dog control reserve

Development contribution reserve

Water reserve

Wastewater reserve

Stormwater reserve

Solid waste reserve

Rivers disaster fund

Rivers reserve

Reserve financial contributions reserve

General disaster fund

Self-insurance fund

Community facilities rate reserve

RESTRICTED AND COUNCIL CREATED RESERVES (CONT.) Camping ground reserve

The campsite reserve is used to delineate all funding and expenses for the campsite activity. Any deviations from these budgets (due to timing of projects, unplanned expenses, etc.) are recorded in the campsite reserve so that any surpluses/deficits can be delineated.

Community housing reserve

CASHFLOW RECONCILIATION

RELATED PARTY TRANSACTIONS

PORT NELSON LIMITED
TASMAN BAYS HERITAGE TRUST
NELSON AIRPORT LIMITED Received from

KEY MANAGEMENT PERSONNEL

SEVERANCE

REMUNERATION

CHIEF EXECUTIVE

COUNCIL EMPLOYEES – HEAD COUNT

COUNCIL EMPLOYEES – FULL TIME EQUIVALENT

REMUNERATION (CONT.)

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS RISKS

Credit risk

FINANCIAL INSTRUMENTS (CONT.)

Debtors and other receivables derive primarily from the Council's statutory functions, therefore there are no procedures in place to monitor or report the credit quality of debtors and other receivables in relation to internal or external credit assessments. The Council does not have significant concentrations of credit risk in relation to debtors and other receivables as it has a large number of credit customers, mainly ratepayers and the Council has powers under the Local Government (Valuation) Act 2002 to recover unpaid debts from ratepayers.

Cash flow interest rate risk

The Council is exposed to credit risk as a guarantor of all the NZ LGFA's loans.

Financial guarantees

FINANCIAL INSTRUMENTS (CONT.) Price risk

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market prices. The Council is exposed to equity price risk for its investments, which are classified as financial assets held at fair value through comprehensive income and expense.

Liquidity risk

CAPITAL MANAGEMENT
CAPITAL MANAGEMENT (CONT.) Council has the following Council created reserves
URBAN PORTIONS OF THE STATE HIGHWAY NETWORK
EVENTS AFTER THE REPORTING DATE
SIGNIFICANT VARIANCES COMPARED TO THE ANNUAL PLAN
ELECTED REPRESENTATIVES
FINANCIAL PERFORMANCE IN RELATION TO REGULATIONS BENCHMARKS

The purpose of the covenant is to improve and support the environmental performance of drinking and waste water systems. Fair value loss on derivatives ($4.3 million) After interest rate swaps were entered into, interest rates fell, causing the fair value of the swaps to fall.

ANNUAL REPORT DISCLOSURE STATEMENT FOR YEAR ENDING 30 JUNE 2020 What is the purpose of this statement?

RATES AFFORDABILITY BENCHMARK Council meets the rates affordability benchmark if

Rates (revenue) affordability

FINANCIAL PERFORMANCE IN RELATION TO REGULATIONS BENCHMARKS (CONT.)

Rates (increases) affordability

DEBT AFFORDABILITY BENCHMARK

External debt limit

FINANCIAL PERFORMANCE IN RELATION TO REGULATIONS BENCHMARKS (CONT.) Net debt to equity

The following graph represents the actual results based on the prescribed definitions in the policy. A measurable net debt-to-equity limit. Actual net debt to equity (within or within the limit).

Net debt to total operating revenue

Net interest to total revenue

Net interest to total rates revenue

BALANCED BUDGET BENCHMARK

ESSENTIAL SERVICES BENCHMARK

DEBT SERVICING BENCHMARK

DEBT CONTROL BENCHMARK

OPERATIONS CONTROL BENCHMARK

RATING BASE AND INSURANCE OF ASSETS

RATING BASE INFORMATION

RATING BASE AND INSURANCE OF ASSETS (CONT.)

INSURANCE OF ASSETS

WATER, WASTEWATER, STORMWATER, RIVERS, REFUSE, AERODROMES, PORTS AND COASTAL ASSETS

ROADING AND FOOTPATH ASSETS

LAND, BUILDINGS, PLANT AND EQUIPMENT AND OTHER ASSETS This activity has a total asset book value of $230,839,000

COMMITMENTS AND CONTINGENCIES

CONTRACTUAL CAPITAL COMMITMENTS

OPERATING LEASES AS LESSEE

VEHICLES

SELF-INSURANCE FUND

COMMITMENTS AND CONTINGENCIES (CONT.)

GUARANTEE – NEW ZEALAND LOCAL GOVERNMENT FUNDING AGENCY LIMITED

WAIMEA WATER LIMITED JOINT OPERATION

Project cost

As such, no financial liability is recognized in relation to the potential difference in the investment and book value of the assets. For these reasons, the final price of the dam will not be known until the near completion of the project.

Compensation clause

Improved pond resilience, including the financier's ITE recommendations to improve the overflow drainage and grout curtain. WWL expects a corresponding delay (compared to original estimate) for the project of between two to four months, excluding Covid-19 delays, although options are being explored to recover time.

CIIL loan, guarantees and credit support

Risks will be better understood and mitigated in late 2020 once the culvert, initial dam and footing are complete, the embankment and injection curtain are well underway and quotes for mechanical and electrical work are received.

CONTINGENT LIABILITIES

OTHER CONTINGENT ASSETS 2020: $Nil (2019: $Nil)

ASSOCIATES CONTINGENT LIABILITIES AND CONTINGENT ASSETS

STANDARDS, AMENDMENTS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE

COVID-19 IMPACT

PBE IFRS 48 – SERVICE PERFORMANCE REPORTING

PBE IPSAS 41 – FINANCIAL INSTRUMENTS

PBE IPSAS 40 – PBE COMBINATIONS

PBE IFRS 17 – INSURANCE CONTRACTS

NZ IFRS 16 – LEASES

COVID-19 IMPACT (CONT.)

Due to Covid-19 restrictions, the Council incurred some income losses, mainly from; dividends, rent relief and campsites. There has been an impact on the Council's achievement of its performance targets during the year.

PORT NELSON INVESTMENT IN JOINT VENTURE Impairment consideration

A claim for these civil defense costs directly related to Covid-19 has been submitted to the Central Government in the amount of $377,000. The result of this assessment was that there was no material movement in asset values as a result of Covid-19.

Valuation of investment property

Nelson Airport land valuation

APPENDICES

APPENDIX ONE: APPLICATIONS PROCESSED

ENVIRONMENT AND PLANNING DEPARTMENT

APPLICATIONS PROCESSED 1 JULY 2019 TO 30 JUNE 2020

APPENDIX TWO: COUNCIL’S COMMITTEES, RESPONSIBILITIES AND PORTFOLIOS

COUNCIL STANDING COMMITTEES

STRATEGY AND POLICY COMMITTEE The Strategy and Policy Committee’s purpose is to

REGULATORY COMMITTEE

OPERATIONS COMMITTEE

COUNCIL COMMITTEES