Meeting:

Regional Council

Meeting Date:

20 May 2021

 

 

Items under Separate Cover

As noted on the Regional Council Agenda for the meeting on Thursday 20 May 2021, the following items are included under separate cover:

Reports

Information Only

Agenda Item 10.2  Arotake Tuatoru 2020/21 - Performance Monitoring Report Quarter Three                                                         2

Attachment 1 - Arotake 2020/21 Tuatoru Quarter Three (July 2020 to March 2021) 3

Attachment 2 - Bancorp Treasury Report March 2021 - Public Excluded

Attachment 3 - Toi Moana Trust March 2021 Quarterly Report - Public Excluded

Public Excluded Section

Agenda Item 11.5  Confidential Attachments - Arotake Tuatoru - Quarter Three

 

 


 

 

 

Report To:

Regional Council

Meeting Date:

20 May 2021

Report Writer:

Debbie Hyland, Finance & Transport Operations Manager and Zhivan Alach, Organisational Performance Manager

Report Authoriser:

Mat Taylor, General Manager, Corporate

Purpose:

This report provides an overview of Council’s performance (financial and non-financial) and the progress of our work for the nine months ended 31 March 2021.

 

 

Arotake Tuatoru 2020/21 - Performance Monitoring Report Quarter Three

 

Executive Summary

This report provides an overview of Council’s performance and the progress of our work for the third quarter of 2020/21. Arotake Tuatoru 2020/21 (July 2020 to March 2021) is included as Attachment 1 to this report.

1.             For the nine months ended 31 March 2021, Council is forecasting an annual operating deficit of $13.2 million which is $0.3 million lower than the budgeted deficit of $12.9 million. Council expects to receive $13.0 million of capital revenue which is lower than the annual capital revenue budget of $18.5 million. As a result, Council is forecasting a total deficit of $0.2 million which is $5.7 million lower than the total budgeted surplus of $5.6 million. Council is forecasting capital expenditure of $40.3 million which is $14.1 million lower than the capital budget of $54.4 million.

2.             Our total investment portfolio is $282.3 million including $50 million on-lent to Quayside Holdings Limited (Quayside).The portfolio has an average yield of 1.73%. Council has borrowed $231.4 million, with $50.0 million on-lent to Quayside, and $181.4 million to fund capital expenditure comprising $112.2 million core debt and $69.2 million reinvested in term deposits to align with future cash-flows for capital expenditure. The average interest rate on borrowings is 1.5%. Confidential Appendix 2 Bancorp Monthly Treasury Report and Confidential Appendix 3 Quayside Holdings Toi Moana Fund Quarterly Update March 2021 provide further details of Council’s treasury performance.

3.             We are tracking well against our performance measures for the third quarter with 22 out of 33 performance measures on track, two measures not on track and one measure with no data available due to changes to the activity (Regional Economic Development). Data is not yet available for 8 measures, mainly due to them being reported annually.

 

Recommendations

That the Regional Council:

1.       Receives the report, Arotake Tuatoru 2020/21 - Performance Monitoring Report Quarter Three.

1        Confirms the public be excluded on the grounds set out in the Local Government Official Information and Meetings Act 1987 from consideration of the following report attachments:

(a)  Bancorp Treasury Report March 2021 under Section 48(1)(a)(i) Section 7 (2)(b)(ii) as withholding the information is necessary to protect information where the making available of the information would be likely to unreasonably prejudice the commercial position of the person who supplied or who is the subject of the information and that this attachment remain in Public Excluded.

(b)  Toi Moana Trust March 2021 Quarterly Report under Section 48(1)(a)(i) Section 7 (2)(b)(ii) as withholding the information is necessary to protect information where the making available of the information would be likely to unreasonably prejudice the commercial position of the person who supplied or who is the subject of the information and that this attachment remain in Public Excluded.

 

1.        Introduction

4. This report provides an overview of Council’s performance and the progress of our work for the third quarter of the 2020/21 financial year (July 2020 – March 2021). This includes a view of our service delivery and financial forecasts to 31 March 2021.

5. Arotake Tuatoru 2020/21 has been included as Attachment 1 to this report and includes the following sections.

·    Highlights for the quarter are presented in the ‘Executive Summary’ section of the report.

·    A Financial Performance section providing an overview of Operating and Capital expenditure, key budget variance analysis, and the forecast reserves position to 30 June 2021. This also includes an update on Treasury performance, including investments and borrowings.

·    Non-financial performance is covered through the Service Delivery Performance section of the report which includes monitoring of key performance indicators as set out in the Long Term Plan 2018-2028. People and Culture, and Health and Safety updates round out the non-financial information.

6. Following this Council meeting, the Arotake report will be published on Council’s website.

1.1      Alignment with Strategic Framework

 

The Way We Work

We deliver value to our ratepayers and our customers.

1.1.1    Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

 

þ Cultural

 

þ Social

 

þ Economic

 

 

7. Councils’ Arotake report provide monitoring information across the full range of Council activities which collectively support all four aspects of community wellbeing.    

2.        Arotake Tuatoru 2020/21 highlights

Highlights from the Community Outcomes in Action for the quarter include:

Consultation on our Long Term Plan 2021-2031

Quarter three saw the release of the consultation document for our proposed Long Term Plan for 2021-2031. The document was open for submissions from 22 February to 22 March.

To support engaging with our community, we held a number of online and in-person meetings/huis, including presentations to other councils across the region and community events in Rotorua, Rangitāiki and Tauranga.

In order to try to reach as many people as possible across our region, we used a mix of digital and newspaper advertising, as well as advertising on grass-roots social channels and iwi radio stations for the first time.

We were really pleased to receive more submissions than any other previous LTP consultation – a total of 319.

Self-certification for boat ramp users

New rules to stop the spread of aquatic pests across the Bay of Plenty came into force this quarter, with boat ramp users now required to self-certify that their vessels and trailers are free from freshwater fish and plant pests.

The rules contained within the Bay of Plenty Regional Pest Management Plan 2020–2030 ensure that lake users take an active role in protecting the long-term health of the region’s lakes and rivers.

Self-certification checkpoints have been set up this week at the most popular boat ramps around the Rotorua Te Arawa lakes. The checkpoints are clearly signposted and have forms that should be completed and displayed on the dashboard of the vehicle used to launch the vessel.

Biannual oil spill response training exercise in Fergusson Park

A biannual oil spill response training exercise was undertaken in the Matua/Fergusson Park area. This exercise was based on a scenario of oil impacting on the Matua Estuary from a vessel sinking at a mooring.

This training helps ensure Council are prepared to respond to an oil incident, and that our Oil Spill Response Plan is co-ordinated and effective. Booms, oil skimmers, boats and personal protective equipment were used to contain and clean up the oil.

Approximately 30 participants were involved in this inter-agency exercise, including staff from the Regional Council response team including the Regional Harbourmaster, Maritime New Zealand, Tauranga City Council, Department of Conservation, iwi, Waikato Regional Council and Gisborne District Council.

· Additional highlights from the quarter can be found on page 4-5 of the Arotake report.

3.        Summary of financial and non-financial performance to 31 March 2021

8. For the nine months ended 31 March 2021, Council is forecasting an annual operating deficit of $13.2 million which is $0.3 million higher than the budgeted deficit of $12.9 million. Council expects to receive $13.0 million of capital revenue which is lower than the annual capital revenue budget of $18.5 million. As a result, Council is forecasting a total deficit of $0.2 million which is $5.7 million lower than the total budgeted surplus of $5.6 million.

9. The significant contributor of this is the Rotorua Lakes Activity which is forecasting an under-spend in operating expenditure of $3.6 million, $2.5 million of this is due to the Rotorua Te Awara Lakes land use change incentives programme which also lowers forecast grants and subsidies revenue. The proposed land use change incentives budgets for 2020/21 to 2026/27 have been re-phased through the development of the draft Long Term Plan 2021-2031 to better reflect the expected uptake of land use incentives.

10.         The year-end capital expenditure forecast is $40.3 million, this is a forecast underspend of $14.1 million. This is mainly due to a $4.7 million underspend in the Rivers and Drainage Activity mainly associated with flood damage repairs expected to be completed by June 30 2021 at a lower cost.  The Waioeka estuary restoration project within the Regional Flood Risk Coordination Activity is forecasting a $3.9 million underspend due to delays in negotiations on the land purchase required for the project.

3.1      Treasury

11.         Our total investment portfolio is $282.3 million including $50 million on-lent to Quayside Holdings Limited (Quayside).The portfolio has an average yield of 1.73%.

12.         Council has borrowed $231.4 million, with $50.0 million on-lent to Quayside, and $181.4 million to fund capital expenditure comprising $112.2 million core debt and $69.2 million reinvested in term deposits to align with future cash-flows for capital expenditure. The average interest rate on borrowings is 1.5%.

13.         Confidential Appendix 2 Bancorp Monthly Treasury Report and Confidential Appendix 3 Quayside Holdings Toi Moana Fund Quarterly Update March 2021 provide further details of Council’s treasury performance.

3.2      Performance Measures

14.         We are tracking well against our performance measures at this stage of the year. 22 out of a total of 33 performance measures were on track at the end of Quarter 1, with an additional 8 measures to be reported on later in the year. In addition, 2 measures were not on track to be achieved at the end of 2020/21.

15.         One measure has no data available due to changes to the activity (Regional Economic Development).

16.         Further information about how we are tracking can be found on pages 16-18 of the Arotake report.

4.        Considerations

4.1      Risks and Mitigations

There are no direct risk implications arising as a result of this report.

4.2      Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

17.         There are no direct climate change implications arising as a result of this report.

18.         Climate Change is identified as a strategic challenge facing the Bay of Plenty Region.  The Arotake Report provides a report on the financial and non-financial performance of Council and this includes work delivered through Groups of Activities to understand the implications of and to respond to the implications of Climate Change.

4.3      Implications for Māori

19.         Through this quarter Council continued to deliver services as set out in our LTP 2018-2028 and Annual Plan 2020/21, this includes delivering services to all of our community including Māori.

20.         Council also continues with work that involves engagement with Māori. Our region has New Zealand’s largest number of iwi entities and the second largest Māori population. This provides the region and its communities with a rich and vibrant cultural dynamic. The involvement of Māori in Council decision making has been and will continue to be, an important component of our work as a Regional Council.

4.4      Community Engagement

 

21.         

Engagement with the community is not required as the recommended proposal / decision [relates to internal Council matters only].

 

4.5      Financial Implications

 

This report sets out the financial performance for Bay of Plenty Regional Council for the nine months ended 31 March 2021.

The draft Long Term Plan 2021-2031 Budget incorporates assumptions related to the Council’s FY20/21 in-year performance monitoring.

5.        Next Steps

22.         Following this Council meeting, the Arotake report will be published on Council’s website.

 

 

Attachments

Attachment 1 - Arotake 2020/21 Tuatoru Quarter Three (July 2020 to March 2021)

Attachment 2 - Bancorp Treasury Report March 2021 (Public Excluded)

Attachment 3 - Toi Moana Trust March 2021 Quarterly Report (Public Excluded)  

 


Regional Council                                                                                                                           20 May 2021

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Regional Council                                                                                                          20 May 2021

 

Item 10.2

Public Excluded Attachment 2

Bancorp Treasury Report March 2021


Regional Council                                                                                                          20 May 2021

 

Item 10.2

Public Excluded Attachment 3

Toi Moana Trust March 2021 Quarterly Report