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Report To:
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Regional
Council
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Meeting
Date:
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24 June
2021
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Report
Writer:
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Mark Le Comte, Principal Advisor,
Finance and Debbie Hyland, Finance & Transport Operations Manager
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Report
Authoriser:
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Mat
Taylor, General Manager, Corporate
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Purpose:
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For Council to receive the final
draft Statement of Intent 2021/22 for Quayside Holdings
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Quayside Holdings Statement of Intent
2021/22
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Executive Summary
This report intends to
complete the Council process for the Quayside Holdings Statement of Intent
(SOI). This has included:
· Council’s
statement of expectations
· Council
Consideration of the draft SOI
· The
Quayside Board considering Council’s feedback on the draft SOI
· Audit
confirmation that the SOI aligns with Long Term Plan 2021-2031 financial
estimates.
The Quayside Chief
Executive notes that there may be minor changes to the final draft SOI (attachment
one). The legislative requirement is the completed SOI must be adopted by the
Quayside Board and delivered to the shareholder by 30 June 2021. There is no
specific requirement for Council to adopt the SOI.
Earthworks for the Rangiuru
business park are due to commence in the spring of 2021. The SOI includes an
estimate the Business Park will create between 3,000 and 4,000 new jobs in
the region.
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Recommendations
That the Regional Council:
1 Receives
the report, Quayside Holdings Statement of Intent 2021/22.
2 Receives
the Quayside Holdings final draft Statement of Intent 2021/22.
3 Notes
that Quayside may make minor changes to the final Draft Statement of Intent
before 30 June 2021.
4 Authorises
that the Regional Council Chair is to determine whether any changes to Quayside
Holdings final draft Statement of Intent 2021/22 are material and require
discussion at a Council Meeting.
1. Introduction
Quayside is a Council Controlled
Organisation (CCO) which includes several subsidiaries.
Schedule 8 of the Local
Government Act (2002) requires Council Controlled Organisations to deliver to
shareholders their completed Statement of Intent (SOI) before the financial
year to which it relates.
1.1 Legislative Framework
The requirements and process for
completing the SOI is set in the LGA sections 64, 64A, 64B and schedule 8.
1.2 Alignment with Strategic
Framework
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A Healthy Environment
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Freshwater for Life
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Safe and Resilient Communities
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A Vibrant Region
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We
invest appropriately in infrastructure to support sustainable development.
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The Way We Work
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We
deliver value to our ratepayers and our customers.
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Quayside Holdings manages Council’s major financial
investments to achieve a return on invested funds to reduce the general rates
requirement and grow the investment portfolio for intergenerational wealth,
equity and wellbeing.
In addition, Quayside is leading the development of
Rangiuru as a project with significant regional benefit and other local
investments.
1.2.1 Community Well-beings Assessment
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Dominant Well-Beings Affected
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¨ Environmental
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¨ Cultural
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¨ Social
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¨ Economic
Medium
- Positive
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Quayside Holdings manages
Council’s major financial investments to achieve a return on invested
funds to reduce the general rates requirement and grow the investment portfolio
for intergenerational wealth, equity and wellbeing.
In addition, Quayside is leading
the development of Rangiuru as a project with significant regional benefit and
other local investments.
2. Statement of Intent Process
This report
completes the Council process for the Quayside Holdings Statement of Intent
(SOI). This has included:
· Council’s
statement of expectations
· Council
Consideration of the draft SOI
· The
Quayside Board considering Council’s feedback on the draft SOI
The Quayside Chief Executive notes
that there may be minor changes to the final draft SOI (attachment one).
The completed SOI must be adopted
by the Quayside Board and delivered to the Regional Council by 30 June 2021.
Council is not required to adopt the SOI, however, Council can require the
Board to modify the SOI by resolution.
Staff consider that the efficient
process is to authorise the Regional Council Chair to consider, and to decide
on whether Council need to discuss any subsequent changes to the SOI.
The material financial estimates
for Quayside Holdings are aligned with LTP 2021-2031 and shown in the table
below:
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2021/22
$ million
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2022/23
$
million
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2023/24
$
million
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Distributions
to Council
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Ordinary
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36.0
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37.1
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38.2
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Special
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4.0
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2.9
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0-3.0
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Total
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40.0
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40.0
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38.2-41.2
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Council Shareholder Value
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2,723
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2,743
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2,766
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Work is underway on updating the
Quayside Dividend Policy. The above figures are the current and best available
estimates. This is expected to change as a result of actual performance.
Earthworks for the Rangiuru
business park are due to commence in the spring of 2021. The SOI includes an
estimate that the Business Park will create between 3,000 and 4,000 new jobs in
the region.
3. Considerations
3.1 Risks and Mitigations
Quayside manages a diversified
portfolio of investments to mitigate individual investment risks. Council and
Quayside staff meet regularly to discuss treasury operations and risk
management.
3.2 Climate Change
The matters
addressed in this report are of a procedural nature and there is no need to
consider climate change impacts.
3.3 Implications for Māori
The implications for Māori
are directly related to rates required and are of a financial nature only.
Quayside has investments that directly benefit Māori.
3.4 Community Engagement
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INFORM
Whakamōhio
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To provide affected communities with balanced and
objective information to assist them in understanding the problems,
alternatives and/or solutions.
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Information related to dividends
received by Council and CCO objectives were included with the supporting
information for Long Term Plan 2021-2031 consultation.
3.5 Financial Implications
If the recommendation is adopted by Council, will it result in:
- Unbudgeted work during the current financial
year?
- Unbudgeted work for any of the years remaining
in the current Long Term Plan?
If the answer is ‘no’ to both questions please
select the dropdown option 1 and complete appropriately.
If the answer is ‘yes’ to either question please
select “Budget Implications” in the building block below and liaise
with your Management Accountant in order to complete the Financial Impact
table.
There are no
material unbudgeted financial implications and this fits within the allocated
budget. Work on the dividend policy may have impacts on future financial
planning.
4. Next Steps
Next Steps: What next? What resources are needed? Further
analysis? Timeframes ahead. Any consultation planned. Remind Council of the
process ahead. Next update to Council?
Conclusion: Short concluding remarks. Referring back to
recommendations. No new content.
Staff and the Chair will review
the final SOI. The Quayside SOI will be published on Council’s website as
required.
Staff will continue to work
closely with Quayside Holdings on group treasury and tax matters.
Attachments
Attachment 1 - Quayside final draft
Statement of Intent 2021/22 ⇩
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Report To:
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Regional
Council
|
|
Meeting
Date:
|
24 June
2021
|
|
Report
Writer:
|
Mark Le Comte, Principal Advisor,
Finance and Debbie Hyland, Finance & Transport Operations Manager
|
|
Report
Authoriser:
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Mat
Taylor, General Manager, Corporate
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Purpose:
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For Council to receive the final
draft Statement of Intent 2021/22 for the Toi Moana Trust
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Toi Moana Trust Statement of Intent
2021/22
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Executive Summary
This report intends to
complete the Council process for the Toi Moana Trust Statement of Intent.
This has included:
· Council’s
statement of expectations
· Council
Consideration of the draft Statement of Intent
· The
Toi Moana Trust Board considering Council’s feedback on the draft
Statement of Intent (Appendix 1)
· Staff
and Audit confirmation that the Statement of Intent aligns with Long Term
Plan 2021-2031 financial estimates.
The
SOI sets out the Toi Moana Trust estimated dividend distribution, and this is
consistent with the amounts in the Council’s Long Term Plan 2021-2031.
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Recommendations
That the Regional Council:
1 Receives
the report, Toi Moana Trust Statement of Intent 2021/22.
2 Approves
the Toi Moana Trust Statement of Intent 2021/22.
3 Notes
that there may be minor changes to the Statement of Intent before 30 June 2021.
4 Authorises
that the Regional Council Chair is to determine whether any changes to the Toi
Moana final draft Statement of Intent 2021-2024 are material and require
discussion at a Council Meeting.
1. Introduction
The Toi Moana Trust is a Council
Controlled Organisation (CCO)
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Schedule 8 of the Local Government Act (2002) requires Council
Controlled Organisations to deliver to shareholders their completed Statement
of Intent (SOI) before the financial year to which it relates.
1.1 Legislative Framework
The requirements and process for
completing the SOI is set in the LGA sections 64, 64A, 64B and schedule 8.
1.2 Alignment with Strategic
Framework
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A Healthy Environment
|
|
|
Freshwater for Life
|
|
|
Safe and Resilient Communities
|
|
|
A Vibrant Region
|
|
|
The Way We Work
|
We
deliver value to our ratepayers and our customers.
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The Toi Moana Trust was established to provide a long-term
return on invested funds to reduce the general rates requirement.
1.2.1 Community Well-beings Assessment
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Dominant Well-Beings Affected
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¨ Environmental
|
¨ Cultural
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¨ Social
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¨ Economic
Low -
Positive
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The Toi Moana Trust was
established to provide a long-term return on invested funds to reduce the
general rates requirement.
2. Statement of Intent Process
This report intends to complete the
Council process for the Toa Moana Statement of Intent (SOI). This has included:
· Council’s
statement of expectations
· Council
Consideration of the draft SOI
· The
Quayside Board considering Council’s feedback on the draft SOI
· Audit
confirmation that the SOI aligns with Long Term Plan 2021-2031 financial
estimates.
The Quayside Chief Executive notes
that there may be minor changes to the final draft SOI (attachment one). The
completed SOI must be adopted by 30 June 2021.
The financial estimates for Toi
Moana are aligned with LTP 2021-2031 and shown in the table below:
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2021/22
$ million
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2022/23
$
million
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2023/24
$
million
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Distributions to Council
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Ordinary
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2.25
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2.25
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2.25
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Special
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2.25
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Total
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4.5
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2.25
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2.25
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Council Shareholder Value
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45
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45
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45
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Quayside, as the investment
manager, is reviewing the mix of investments that are required to achieve the
long term goals for the Toi Moana Trust.
Staff and Council’s
treasury advisors will review any proposed changes before reporting this to
Council with a revised Statement of Investment Proposal (SIPO).
3. Considerations
3.1 Risks and Mitigations
The Toi Moana
Trust may experience fluctuations in returns and value, however, has been
designed as a long term investment and short term volatility should be
‘looked through’. Quayside and Council staff meet regularly to
discuss investment performance and risks.
3.2 Climate Change
The matters
addressed in this report are of a procedural nature and there is no need to
consider climate change impacts.
3.3 Implications for Māori
The implications for Māori
are directly related to rates required and are of a financial nature only.
3.4 Community Engagement
|
-
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INFORM
Whakamōhio
|
To provide affected communities with balanced and
objective information to assist them in understanding the problems,
alternatives and/or solutions.
|
Information related to dividends
received by Council and CCO objectives were included with the supporting
information for Long Term Plan 2021-2031 consultation.
3.5 Financial Implications
If the recommendation is adopted by Council, will it result in:
- Unbudgeted work during the current financial
year?
- Unbudgeted work for any of the years remaining
in the current Long Term Plan?
If the answer is ‘no’ to both questions please
select the dropdown option 1 and complete appropriately.
If the answer is ‘yes’ to either question please
select “Budget Implications” in the building block below and liaise
with your Management Accountant in order to complete the Financial Impact
table.
There are no
material unbudgeted financial implications and this fits within the allocated
budget. The dividend received is a key part of our Financial Framework review
and our Financial Strategy.
4. Next Steps
Next Steps: What next? What resources are needed? Further
analysis? Timeframes ahead. Any consultation planned. Remind Council of the
process ahead. Next update to Council?
Conclusion: Short concluding remarks. Referring back to
recommendations. No new content.
The completed SOI will be
reviewed by staff and the Chair. The completed SOI will be published on
Council’s website as legislatively required.
Attachments
Attachment 1 - Toi Moana final draft
Statement of Intent ⇩
