At a Glance

Sticking to our targets

The Budget at a Glance

Indicative Residential Property Rates (properties without a water meter and inclusive of GST)Note – these indicative rates are subject to change. These will be updated to reflect the rates resolution to the Council on 18 June 2014.

Where The Money Goes

Where The Money Comes From

Delivering value for money

It’s the Council’s job to enable democratic local decision-making and meet the current and future needs of our communities for local infrastructure, public services and regulatory functions in the most cost-effective way.

This Annual Plan delivers on that. Its adoption follows extensive consultation and the broad programme of services it contains represents great value for money:

The plan equates to $5.56 per resident per day.1

Governance

We inform residents and make decisions about the city’s future, through elections, consultation, engagement, our website, publications and other channels.

2014/15 operating cost:
$15m ($73 per resident, $0.20 per resident per day)

Environment

We supply water to the city’s homes and businesses and safely dispose of stormwater, wastewater and solid waste. We support conservation-based visitor attractions such as Wellington Zoo, Zealandia and four botanical gardens. We provide over 40 square kilometres of Town Belt and reserve land, parks and coastline. We offer grants for environmental initiatives and promote energy efficiency, urban ecology and sustainability.

2014/15 operating cost:
$150m ($729 per resident, $2 per resident per day)

Economic Development

We support major events and facilities such as Te Papa and the Wellington venues that attract visitors and spending to the city. We fund tourism promotion and keep the city centre vibrant by providing free weekend parking. We also provide grants for projects with economic benefits.

2014/15 operating cost:
$38m ($184 per resident, $0.50 per resident per day)

Cultural Wellbeing

We fund the city’s art galleries and museums, operate Toi Pōneke Arts Centre, support the New Zealand Festival and the New Zealand Symphony Orchestra, operate the City Archives, provide cultural grants and support a wide array of community events and festivals.

2014/15 operating cost:
$18m ($89 per resident, $0.24 per resident per day)

Social and Recreation

We provide the city’s sportsfields, swimming pools, recreation centres, playgrounds and libraries. We also provide over 2300 homes and protect public health and safety by monitoring the city centre, controlling liquor and food sales, regulating public health risks, providing toilets and preparing the city to deal with emergencies such as earthquakes.

2014/15 operating cost:
$103m ($501 per resident, $1.37 per resident per day)

Urban Development

We guide and regulate building and land development, enhance the waterfront and other public areas, and protect the city’s built heritage.

2014/15 operating cost:
$36m ($174 per resident, $0.48 per resident per day)

Transport

We look after more than 650km of streets and roads, as well as footpaths, cycle lanes, traffic signals and car parks. We also support public transport through measures such as bus lanes and shelters.

2014/15 operating cost:
$57m ($279 per resident, $0.76 per resident per day)

Sticking to our targets

The Annual Plan sets out the Council’s activities and budget for the 2014/15 financial year. It builds on the priorities and financial limits that are established in the Long-term Plan.

In the 2012-22 Long-term Plan we had a forecast rates increase of 3.17 percent for 2014/15. A review of priorities and spending has reduced this to 2.49 percent. This sits just below our rates limit of 2.5 percent (after factoring in growth in the ratepayer base).

Our net borrowings sit well within the limits we have set. Our borrowings are at 100 percent of income. This is close to our operating target of less than 105 percent but well within the prudential limit of less than 150 percent. As a percentage of equity, the borrowings sit at 6 percent.

The Budget at a Glance

Operational expenditure budget: $404.2 million

Capital works budget: $152.0 million2

Total forecast borrowings: $404.2 million

Total assets: $7.3 billion

Average rates increase total: 2.49%

Rates differential: 2.8:13

Average rates impacts subject to changes in valuations:

– residential sector: 2.35%
– commercial sector: 2.70%

Net operating surplus: $26.3 million4

Indicative Residential Property Rates (properties without a water meter and inclusive of GST)5

Capital values
2014/15
$
Total rates
2014/15
$

200,000
1,081

300,000
1,481

400,000
1,881

500,000
2,281

600,000
2,680

700,000
3,080

800,000
3,480

900,000
3,880

Where The Money Goes

Where The Money Comes From

1 Total operating expenditure divided by resident population of 205,345 (Forecast I.D) and divided by 365 days.

2 Excludes carry forwards and loans to other organisations.

3 Our rating policy sees the commercial sector paying 2.8 times the general rates of a residential ratepayer on a property of equal value. This differential has been substantially reduced over time.

4 The surplus primarily relates to an accounting practice that means funding received for specific capital projects (ie Housing New Zealand grants, development contributions, New Zealand Transport Agency subsidies) are recognised as income.

5 Note – these indicative rates are subject to change. These will be updated to reflect the rates resolution to the Council on 18 June 2014.

Mayor’s Introduction

Matariki atua ka eke mai i te rangi e roa, e. Whāngainga iho ki te mata o te tau e roa, e.

The Pleiades stars that herald the returning light, bringing new growth and new life.

Welcome to our Annual Plan for 2014/15. I am proud that we are one of the country’s first councils to agree our Annual Plan for the year ahead.

This year’s budget is about growing the economy, increasing our rating base, encouraging development, making the city more resilient to climate change and other disasters, protecting our built and natural heritage and improving transport choices.

We have committed ourselves to being an action-oriented Council that will respond to the issues facing Wellington City. This Annual Plan therefore includes changes that will assist developers and encourage the construction of better quality, environmentally-rated buildings, more earthquake-strengthening assistance and significantly more money for cycling improvements. We agreed these changes and maintained the delivery of all our other services, for an average rates rise of 2.49 percent – below our limit and less than forecast.

We have also agreed our future economic growth agenda 8 Big Ideas, which includes projects that will make a significant impact on our economy such as a film museum, a runway extension for Wellington International Airport, a tech precinct and convention and concert venues. Subject to business cases, these will be further progressed during the development of the 2015–25 Draft Long-term Plan later in the year. The Council is working closely with the Wellington Employers Chamber of Commerce and we’re eager to advance the dialogue we progressed at the first Business Summit held earlier in 2014.

During the consultation process on this plan, we heard from more than 1000 Wellingtonians. Through this input, it was gratifying to see so many people warmly supporting the steps we are taking to lift the wages of our lowest paid staff. There was also a large number of submissions strongly supporting the increased funding for cycling improvements, emphasising the message that came through loud and clear during last year’s election.

I am pleased that the fundamental needs of the city are being well met – for example our $404 million of operational spending includes almost $100 million for stormwater, drinking water and sewage and almost $20 million for libraries. Our economic development funding, which includes events, city promotion and new projects, is significantly higher than four years ago. In 2014/15 our spending on events will be just over $6 million.

The Council is in good financial shape and we are getting on with the job. You said Wellington is a great place to live and let’s keep it that way. I am confident that this plan will ensure the Capital remains one of the world’s most liveable cities, while keeping borrowing and rates within limits set in the Council’s financial strategy.

MAYOR CELIA WADE-BROWN

Chief Executive’s Introduction

This is the second Annual Plan since I came to Wellington to be Chief Executive. This plan represents bold thinking, clear planning and a focus on long-term and sustainable growth.

There has been a big debate about whether Wellington’s economy is growing or contracting, but what cannot be disputed is that growth levels are on an upward trajectory and that there is still significant potential to do better. This plan is about consolidating that recent improvement.

Wellington has all the raw ingredients a world-class city needs. It has a high quality of life, vibrant public spaces, stunning natural attractions and a compact urban form that means everything is within minutes of the amenities you would expect of a cosmopolitan city. Simply, this is a great place to live.

But, there is a challenge for us to face. We must continue to deliver high-quality, value-for-money services but we also have to up our game. We have, we are and we will. This 2014/15 Annual Plan represents the projects, the people and the resources we need to really drive Wellington towards a sustainable, bright and prosperous future.

Contained within our plan is a package of 8 Big Ideas. These ideas represent significant opportunities for Wellington’s growth and global sectors like film and technology. They also represent what we are doing to improve our physical access to the world and the smart ways we can move around our city.

In addition to our 8 Big Ideas, we will deliver a no cuts, no surprises budget. That means we will continue to deliver the high-quality services you expect and deserve, we will continue to support our hugely important local infrastructure like our libraries and sports grounds and we will continue to put a human face to our city with our work to help alleviate homelessness.

The 2014/15 Annual Plan is a comprehensive and meaningful plan of action that has been shaped by Wellingtonians for Wellington.

KEVIN LAVERY
Chief Executive

Overview

WE PLAN IN THREE-YEAR CYCLES

The Local Government Act 2002 requires us to plan in three-year cycles. Every three years, we consult the community on a draft long-term plan. This sets out our intentions for the decade ahead — what we’ll do, how we’ll do it, how much we’ll spend, who will pay, the levels of service we’ll provide, and how we’ll measure the quality and effectiveness of our work. Our last long-term plan was adopted in 2012; our next will be prepared in the coming year.

In between these long-term plans, we take a fresh look each year at our work programme and consider whether any changes are needed. Change may be needed due to revisions to our budgets or new projects to help deal with issues or challenges facing the city. We publish a draft annual plan and listen to your feedback before publishing an annual plan — this document.

The Annual Plan

Our job is to look after Wellington, now and into the future

So, how do we decide what to do?

It’s a simple question with a complex answer. To develop the programme set out in this Annual Plan, we’ve considered a range of factors. We’ve sought to enhance Wellington and its people. We’ve taken into account community expectations, what we know about the state of the city and its services, what we know about future challenges the city is likely to face, and the aspirations we’ve signed up to as part of our economic growth agenda.

The need to meet all of our legal obligations, and ensure prudent management of the city’s finances and assets has also guided our decisions.

We’ve set in place clear goals

Our vision is of a Smart Capital, an inclusive city where talent wants to live. We aim to lift the quality of life on offer in the city by sustaining a culture that is open minded, enhancing the city centre, facilitating the provision of virtual and physical infrastructure, and bolstering the local economy for a lower-carbon future and greater prosperity.

Everything we do contributes to one or more of these outcomes:

Governance: our work aims to deliver trust and confidence in decision-making. An effective and decisive organisation is, after all, more likely to engage others and attract partners.

Environment: we act as a guardian and regulator of the local natural environment.

Economic development: we aim to provide the conditions for growth by advancing the city’s competitive advantages.

Cultural wellbeing: diversity is a feature of urban life – communities, like Wellington, that embrace this as part of their cultural identity will flourish.

Social and recreation: we provide services that aim to sustain safe, resilient, and active communities.

Urban development: we preserve Wellington as a compact, vibrant, and attractive city now and into the future.

Transport: our aim is to deliver an efficient and safe transport system that connects people and places.

See the 2014/15 Activity Programme for more detail.

We’re keeping a lid on costs…

This Annual Plan represents value for money. Take the rates of $2,281 on a $500,000 house. These are less than the average household pays for a single utility — power. Our entire services for the city cost around $2029 per resident per year.

This has been achieved by continuously reviewing the costs of our services. As an example, we have reviewed the governance structures for some of our council-controlled organisations. We have decided to bring the functions of Wellington Waterfront Ltd in-house and are combining Positively Wellington Tourism and Wellington Venues. We expect this to save around $500,000 per annum.

The overall budget sits within the targets that we have set in place in our Financial Strategy. This sees rates increases capped and sets out the levels of borrowing that are considered prudent. (See the Our Finances section for more details.)

… and we’re keeping the city running

This year’s plan sustains the high levels of service that are already in place. We have even increased the budget in some areas to meet cost increases or other pressures:

Our Capital Spaces: a framework to develop, promote and prioritise investment in the city’s open spaces and outdoor recreation facilities receives the following boost:

Makara Peak Mountain Bike Park: $28,000 in capital expenditure and $40,000 in operating expenditure

Open Space Access (tracks and walkways): $150,000 in capital expenditure

community planting and pest control: $75,800 in operating expenditure

Project Halo partnership project: $47,000 to support backyard biodiversity in a buffer zone around Zealandia and pest control in the adjoining rural area

signage at parks and reserves: $20,000 in operating expenditure

promotion of Wellington as a premier mountain biking destination: $30,000 in operating expenditure.

Storm damage: to undertake remedial works following the severe storm in June 2013, we have budgeted:

an additional $973,000 in capital expenditure including $847,000 for seawalls and seashore defensive structures

an additional $262,000 in operating expenditure including $100,000 to remove ageing pines in the Town Belt.

Libraries – children’s literacy and outreach: we have agreed to increase our libraries’ budget by $60,000 to reinstate our children’s literacy programmes, and for customer service and collection refreshment.

Newtown community hub: we will bring forward $40,000 in operating expenditure funding from 2016/17 to 2014/15 to start feasibility work on a community hub/centre for Newtown.

Rural road improvements: in response to a request from the Makara-Ohariu Community Board, we have agreed to allocate $100,000 in capital expenditure for minor safety initiatives on rural roads in Ohariu and Makara.

See the other changes noted in the ‘public feedback’ section (page 13).

We’ve also chosen to lift our performance in key areas

Cycling: the ease, reliability and affordability of a transport network are important to a city’s success.

Wellington on the whole does well in this regard – it has the highest public transport use in the country, more people cycling and walking, and a reducing reliance on cars for commuting – there is nevertheless room for improvement. A focus in the coming year will be on cycling.

The capital budget has been increased by $3 million to $4.3 million. The focus will be on safety and improving key routes.

Living wage rate: the Council has agreed to introduce a living wage rate ($18.40 per hour minimum) for its directly employed staff as part of a broader workforce development plan. An engaged workforce, after all, results in more effective service delivery.

Development contributions: a growing property market is good for the city. It stimulates investments, creates jobs, and adds to the city’s long-term viability. The way we regulate development can impact on the level of investment being made. We have made policy changes to encourage development of quality buildings, reduce compliance costs and improve the efficiency of our processes. (See the appendix for more details.)

Earthquake strengthening: the city has an extensive resilience programme. This covers everything from retaining walls to educational programmes, emergency preparedness, research programmes with the United Nations and local universities, and grants for heritage protection. From 1 July 2014, we will be widening the rates remission for buildings under construction and also introducing a further rates remission after seismic strengthening. These changes aim to encourage property owners to strengthen their buildings. The changes are contained in our amended Rates Remission Policy.

Growth centres: our goal is to direct growth along a spine from Johnsonville in the north, through the CBD, to Kilbirnie. This will result in population increases in those areas and demand for services. Additions this year include:

Johnsonville

undertake significant road improvements in partnership with the New Zealand Transport Agency

undertake work on the design and Resource Consent for the new library.

Central city

extend our free wifi offering

boost summer retail activity through new Christmas and New Year events

introduce a minor public space improvements project

support the completion of the National War Memorial Park.

Kilbirnie and east

create a shared cycling and walking pathway across Kilbirnie

complete public space improvements at Coutts and Onepu roads

support the new Miramar Business Improvement District Area (and its application of a $80,000 targeted rate from commercial rated properties in the Miramar Business Improvement District Area).

We have also deferred or decided to no longer pursue some projects and plans.

Tawa artificial sportsfields: we had proposed to build an additional synthetic sportsfield in the Grenada North/Tawa area in 2014/15. However, a recently developed Wellington Regional Sportsfield Strategy recommended that this not proceed at this time. Consequently, the Council agreed to defer the construction of this turf (reducing our net capital expenditure by $1.046 million) noting that the Tawa Rugby Football Club has decided to construct an artificial sportsfield at Lyndhurst Park and we will upgrade the upper field at Redwood Park in Tawa with a sand-based surface.

Prince of Wales Reservoir: we had planned to construct a new 35 million litre reservoir above Prince of Wales Park in Mt Cook to serve Wellington Hospital’s emergency needs and service potential population growth in the inner-city. We have subsequently agreed to defer this project while we investigate alternative options, including the building of a second water pipe across the harbour. This reduced our capital expenditure by $3.1 million in 2014/15.

Southern Landfill extension: we are applying for resource consent to expand this significant waste management facility. However, we are not planning to do any physical works in 2014/15 as the existing landfill sites have enough capacity for the current volumes of refuse being deposited there. This reduced our capital expenditure by $6.5 million in 2014/15.

Regional Amenities Fund: this fund was established as a ‘top-up’ funding mechanism for entities that provide regional benefits, primarily in the arts, culture and environmental attractions and events sectors. The Council had budgeted a total contribution of $1,336,500 to this regional fund in 2014/15; an increase of $727,300. We have decided to reallocate this increase to support the volunteer graffiti eradication programme (see below) and provide the financial capacity to support Wellington-based projects through the Council’s Economic Development Fund, using similar criteria to the Regional Amenities Fund.

The plan has been influenced by public feedback

We received 633 written submissions, considered the views of 258 people who completed an on-line survey and 196 Our Capital Voice panel members. We also heard directly from 94 submitters as part of our hearings process.

The feedback has resulted in the confirmation of projects and changes. However, the work programme outlined in this document is not the same as the draft plan. Changes made by the Council after hearing from the community include:

bringing forward the upgrade of the community playground at Makara School from 2016/17 to 2014/15

providing funding for the ongoing maintenance of the National War Memorial Park

extending the funding period to provide free wifi in the central city

redirecting a portion of our planned increased contribution to the Regional Amenities Fund to our Economic Development Fund

funding design work and Resource Consent application for the new library in Johnsonville

funding for the city-wide volunteer graffiti eradication programme

reinstating funding for phase two of the Kilbirnie Town Centre upgrade (public space improvements from the Coutts Street and Onepu Road corner to connect with stage one of the town centre upgrade at the southern end of Bay Road)

deferring a commitment to public space improvements around Lombard Lane, Denton Park and part of Bond Street to next year’s plan

agreement to consider including, as part of the 2015-25 Long-term Plan, $260,000 towards the Karori Events Centre provided the Trust has raised at least $1 million from non-Council sources in addition to the $350,000 raised to date

an expanded definition for the Development Contributions Policy to recognise equivalent environmental rating tools and assessments that provide evidence of equal or better environmental performance for the city, when compared to the green star rating tool

refinements to performance measures.

Looking Ahead

Our growth agenda

We’ve got all the ingredients to be a world-class city

Wellington has the best educated, most creative and tech-savvy people in New Zealand, high quality tertiary institutions, lots of smart businesses, and a great culture.

We also have all the lifestyle requirements natural beauty, compactness, a creative vibe, open attitudes, and a quiet ambition that makes anything possible.

But we are not doing as well as we could

Our economy isn’t as strong as some other cities, which of course means fewer jobs, opportunities and less money to invest. We still rely heavily on the government sector to provide jobs and keep the economy afloat.

When deregulation happened in the nineties and many large corporations drifted north, not enough was done to replace them with new industries and business.

Though Wellington has some amazing businesses, overall our economy is not diverse enough, and unless that changes we’re going to be stuck in a cycle of low growth and poor economic performance compared to other cities.

This is a key issue for the city. There is no real growth potential in our largest economic sector – the government bureaucracy. If we look back to when times were good and the economy was growing, Wellington never achieved the same level of the growth of cities that were more closely linked to the open market.

Our quality of life is high on the back of investments

The Council has made significant investments in assets and programmes that have lifted the city’s quality of life. The following are some examples in recent years:

over $100 million in sports and recreation: the ASB Sports Centre; artificial sportsfields; Karori Park redevelopment; Wellington Regional Aquatic Centre expansion; Keith Spry Pool and others

over $200 million in our social housing (in addition to funding from the Government)

$40 million a year in managing wastewater

$30 million a year on parks, reserves and walkways

$20 million a year in providing libraries

$18 million a year supporting museums, galleries and the arts.

We need to grow our income so we can sustain such investments and take even bigger steps towards our goals

The city has a clear vision that neatly encapsulates its strengths and values, and will position it well for the future – a city that is sustainable, dynamic, connected and people-centred.

But achieving those results will not come without investment. A stronger economy and a growing ratepayer base (ie value of the city) provide the means to invest more so that we can reach those results sooner. The stronger the economy, the faster the ratepayer base grows. The faster the ratepayer base grows, the more we can invest in the city.

A key focus of the coming year will be the development of our Long-term Plan. This gives us the chance to review our programme in full and consider what transformation could be made to propel the city forward.

Stepping up is possible

Obviously the Council doesn’t run the local economy. Our role in economic growth, is in supporting and enabling the city’s entrepreneurs, businesses, investors, researchers and workers.

Our commitment will be to:

Be open for business – we can make Wellington the easiest place in the world to do ethical business by minimising red tape, making sure regulation is clear and sensible and being far more customer-focussed.

Do our core jobs well – we can deliver our services as efficiently and effectively as possible, creating a great environment to do business in.

Bring people together – we can play an enabling role, helping to connect people and organisations in ways that create jobs or market opportunities.

Invest in growth – we can invest in civic infrastructure, attractions and amenities that will make a real difference to the local economy and our people.

We’ve gone ahead and made a start

We’re not just talking about it. The Council has already made a start by taking steps to achieve these things, for example by:

working with other councils in the region to merge back office information technology services

working with other councils to establish a ‘one-stop shop’ regional economic development agency

contributing $1 million to the Airport runway consent application costs

establishing an Economic Initiatives Development Fund (with funding of $3.7 million in 2014/15) and a $20 million investment in Destination Wellington

halving development contributions

developing – and committing to explore – eight investment ideas to move the economy along.

We’ve got the capacity to act

This Annual Plan provides a good platform. The prospective position at the end of this plan (30 June 2015) is strong. We have an AA credit rating with Standard & Poor’s – the highest for a public sector entity.

We’ve directed the Chief Executive to institute strict disciplines on our capital investment programme with the aim of reducing carry forwards and reprioritising within the year.

Our rates are not as high as many of our neighbours, and in terms of stacking up against other cities we do pretty well. In short, we have the opportunity and resources to do more if we choose to.

But we must make sure our investments provide a return in the form of growth in the ratepayer base – this will then lead to a cycle of growth releasing more capital to invest back into the city.

Our 8 Big Ideas and more

Our future programme includes a number of projects aimed at growing the local economy. These are in various stages of development but will all be subject to business case tests. They include:

Film museum: Wellington’s film sector thrills, inspires and amazes people here and around the world. A film museum would celebrate this and offer a high-quality international tourist attraction.

International air connections: the region’s prosperity depends on the strength of our connections to the world. Our airport is currently too short for long-haul aircraft. An extended runway would allow planes to fly direct to Asia and raise the prospect of one-stop flights to other destinations.

A tech precinct: connecting with people is critical to success in high-tech industries. A Central Business District tech-precinct would support an environment to share ideas, knowledge, investment and pathways to international markets.

Conference and concert venues: conventions bring people to the city to learn, discuss ideas and make connections. At the moment we have good convention and concert venues but our market share and ability to attract headline acts needs to be considered.

A framework for Miramar: Miramar is New Zealand’s creative hot spot. Set against a backdrop of the coast and green open space, the area presents a number of development opportunities. Setting in place a framework to guide development will ensure the city benefits.

Better transport: providing easy, reliable and safe transport choice is critical for the city. Over the coming years, we will work with NZTA (New Zealand Transport Agency) and Greater Wellington Regional Council to improve those choices in the city.

Open for business: we will take steps to ensure our regulatory and policy settings don’t wrongly impinge on business doing what it does best: investing and creating jobs.

Liveable city: sustaining what makes Wellington a great place to live will be important as we compete with other cities for people and resources.

The Council will also look to support other organisations’ projects that can contribute to the growth agenda. These will be subject to funding being secured from third parties and the consideration of business cases. They include the proposed Ocean Exploration Centre on the south coast and possible expansion of the Museum of Wellington City & Sea.

2014/15 Activity Programme

Over the next few pages, you’ll find information about our plans for 2014/15.

Our work is divided into seven activity areas:

Governance – engagement with Māori, and information, consultation and decision-making.

Environment – gardens and beaches, green open spaces, water, wastewater, waste reduction and energy conservation, environmental conservation attractions and the quarry.

Economic development – city promotions, events and attractions, and business support.

Cultural wellbeing – heritage, galleries and museums, community arts and cultural support, and arts partnerships.

Social and recreation – housing, recreation facilities and programmes, libraries, public health and safety and community support.

Urban development – urban planning and policy, building control and facilitation, development control and facilitation, earthquake risk mitigation and public spaces development.

Transport – transport planning and policy, transport networks and parking.

In each section we outline information about the work we do, key projects, capital and operational costs, and our performance targets (ie our targets for quantity, quality and breadth of service).

We’ve done our best to provide information that is meaningful and relevant, and to present this information as clearly as possible, so that you – Wellington’s residents and business people – can be informed about our programme for the year ahead.

Governance

1.1 Governance, information and engagement

1.2 Māori and mana whenua partnerships

Pārongo ā-Tāone

1 Governance Pārongo ā-Tāone

“He tangata kaiaka mā te mauī, he tangata kaiaka mā te katau”

“Engage some people to attend to the left, and some to attend to the right (a community can use all the skills of its people).”

1.1 Governance, information and engagement

What we do

Key projects

Measuring our performance

What it will cost

Pārongo, kōrerorero whānui me ngā mahi whakataunga

We want to involve people and maintain their confidence in our decision-making.

What we do

City governance and engagement

Civic information

City archives.

Our decisions shape our city – today and into the future. These decisions have to reflect the services that matter to the community and how much they are willing to pay for them, so we do a range of things to ensure people are well informed and can contribute meaningfully to Council decision-making processes. The Local Government Act 2002 sets out the decision-making, planning and accountability procedures expected of councils.

Other legislation requires us to keep a record of our work and provide access to the information we hold. Our City Archives team looks after and makes available a huge range of primary information about the city’s history.

We also operate a 24/7 contact centre so we can provide people with information and respond to their requests related to our services.

Key projects

We will continue to develop the service centre as a one-stop-shop for customers.

We will explore shared services with other councils in the region to reduce costs and improve services.

We will review bylaws and polices to ensure their continued alignment with our overall goals.

We will develop our long term plan – setting out the levels of service and investments that we intend to make.

Measuring our performance

Our targets for 2014/15 are:

at least 60% of residents are satisfied that the Council consults them the right amount

at least 80% of residents are satisfied or neutral (neither satisfied nor dissatisfied) with the way the Council involves them in decision-making

we monitor e-petition participation

100% of Council and committee agendas will be made available to the public two working days prior to the meeting

80% of Council and committee agendas will be made available to the public five working days prior to the meeting

at least 80% of residents agree that Council information is easy to access

at least 80% of residents agree the Council website is easy to navigate and use

80% of contact centre calls are answered within 30 seconds

90% of emails are answered within 12 hours and 100% of emails are answered within 24 hours6

80% of issues reported through the smartphone Fix-It app will be responded to within 30 minutes and the remaining 20% within six hours7

90% of users are satisfied with the City Archives services and facilities.

What it will costTop

1.1 Governance, information and engagement
Operating expenditure 2014/15
Capital expenditure
2014/15

Income
Expenditure
Net expenditure
Total

($000)
($000)
($000)
($000)

1.1.1 - City governance and engagement
(58)
8,329
8,271
-

1.1.2 - Civic information
(324)
5,433
5,109
-

1.1.3 - City Archives
(182)
1,016
834
-

2014/15 1.1 Total
(564)
14,778
14,214
-

2013/14 Total
(733)
17,089
16,356
110

2012–22 LTP Yr 3 Total
(408)
15,856
15,448
-

Variance 2012–22 LTP Yr 3 to AP 14/15
(156)
(1,078)
(1,234)
-

6 Wording of measure changed to better reflect actual performance.

7 New measure.

1.2 Māori and mana whenua partnerships

What we do

Key projects

Measuring our performance

What it will cost

Whai wāhitanga Māori (tae noa ki te mana whenua)

We have an obligation to ensure the views of mana whenua are heard.

What we do

We ensure the special position of mana whenua Ngāti Toa Rangatira and Taranaki Whānui ki te Upoko o te Ika is acknowledged and reflected in the way we make decisions about the city and its resources. We will ensure their contribution to Wellington’s heritage and future is fully and publicly acknowledged.

We work with mana whenua to explore opportunities for the city emerging from settlement of their Treaty of Waitangi claims and engage with the wider Māori community in particular on issues of specific interest to them.

Key projectsTop

We will continue to work in partnership with mana whenua on the basis of the specific recognitions set out in the memoranda of understanding.

We will work to ensure Māori needs and aspirations are reflected in the work of the Council.

We will work with the Port Nicholson Block Settlement Trust to host Waitangi Day celebrations in the city.

Measuring our performanceTop

Our targets for 2014/15 are:

maintain a positive relationship with our mana whenua partners

at least 85% of Māori residents are satisfied or neutral (neither satisfied nor dissatisfied) with regard to their involvement with decision-making.

What it will costTop

1.2 Māori and mana whenua partnerships
Operating expenditure 2014/15
Capital expenditure
2014/15

Income
Expenditure
Net expenditure
Total

($000)
($000)
($000)
($000)

1.2.1 - Māori and Mana Whenua partnerships
-
225
225
-

2014/15 1.2 Total
-
225
225
-

2013/14 Total
-
225
225
-

2012–22 LTP Yr 3 Total
-
252
252
-

Variance 2012–22 LTP Yr 3 to AP 14/15
-
(27)
(27)
-

Environment

2.1 Gardens, beaches and green open spaces

2.2 Waste reduction and energy conservation

2.3 Water

2.4 Wastewater

2.5 Stormwater

2.6 Conservation attractions

Taiao

2 Environment Taiao

“Toitū te marae a Tāne, Toitū te marae a Tangaroa, Toitū te iwi”

“Care for the domain of Tāne Mahuta (Guardian of the Forest) and Tangaroa (Guardian of the sea), so too will the people endure.”

2.1 Gardens, beaches and green open spaces

What we do

Key projects

Measuring our performance

What it will cost

Ngā wāhi wātea me ngā mahi papa atawhai

We manage the city’s natural environment and gardens in ways that balance conservation and enhancement with opportunities for enjoyment and recreation.

What we do

Local parks and open spaces

Botanic gardens

Beaches and coastal operations

Roads and open spaces

Town Belt

Community environmental initiatives

Walkways

Biodiversity (pest management).

From the green hills and the Town Belt to the wild south coast and the city’s botanic gardens, Wellington is surrounded by nature. Our activities seek to preserve the city’s unique environment and protect and restore its biodiversity. A high-quality natural environment enhances the city’s ‘sense of place’ and provides attractive, safe and accessible places for leisure and recreation. Our aim is to enhance enjoyment of these areas.

We ensure that the city’s beaches and coastline remain healthy through a programme involving dune protection, planting, erosion control and maintenance of boating facilities. We look after the city’s parks and gardens, including the Botanic Garden, Otari Wilton’s Bush, Bolton Street Memorial Park, Truby King Park, the Town Belt and many other reserve areas.

We grow about 80,000 native plants each year in our Berhampore Nursery for use in parks, gardens and open spaces and manage over 30 hectares of lawns on over 700 sites throughout the city.

Key projectsTop

We will progress the implementation the Council’s Our Capital Spaces framework to develop, promote and prioritise investment in the city’s open spaces and outdoor recreation facilities.

We will take responsibility for the ongoing maintenance of the National Memorial Park.

Work will continue on the Children’s Garden at the Botanic Garden. This development is dependent on fundraising.

We will support the introduction of the Wellington Town Belt Bill into Parliament to improve and modernise the governance arrangements for the Town Belt.

We will complete the Suburban Reserves Management Plan covering reserves in the eastern, central and western areas.

We will progress our Biodiversity Action Plan and the South Coast Management Plan.

We will continue to work with Ngāti Toa Rangatira to develop a co-management plan for Tapu te Ranga Island (referred to in the deed of settlement between Ngāti Toa Rangatira and the Crown).

Manage our involvement in international resilience programmes (eg application for funding from the Rockefeller Institute and UN resilience programme participation) as part of Our Living City.

Measuring our performanceTop

Our targets for 2014/15 are:

90% of residents are satisfied with the quality and maintenance of local parks and reserves

95% of residents are satisfied with the quality and maintenance of the Botanic Garden

90% of residents are satisfied with the quality and maintenance of beaches and coastal areas

90% of residents agree that green open spaces, gardens and beaches provide good value for money

90% of residents are satisfied with the quality and maintenance of walkways

85% of residents are satisfied with the quality and maintenance of roadside vegetation

90% of residents use local parks and reserves yearly, and at least 30% use them weekly

the Botanic Garden will have 1.2 million visitors

75% of residents visit the Botanic Garden yearly, and 10% visit it weekly

95% of residents use beaches and coastal areas yearly, and 25% use them weekly

70% of residents use walkways yearly, and 15% use them weekly

85% of residents are satisfied with the quality and maintenance of street cleaning

100% of our street cleaning complies with quality performance standards

at least 45,000 native plantings are undertaken by the Council

at least 34,000 native plants are provided by the Council for community planting

at least 70% of high-value biodiversity sites are covered by integrated animal pest control or weed control

at least 95% of the grants funds are successfully allocated (through milestones being met)

90% of project outcomes are achieved (weighted by $ value).8

What it will costTop

2.1 Gardens, Beaches and Green Open Spaces
Operating expenditure 2014/15
Capital expenditure
2014/15

Income
Expenditure
Net expenditure
Total

($000)
($000)
($000)
($000)

2.1.1 - Local parks and open spaces
(611)
8,545
7,934
1,098

2.1.2 - Botanic gardens
(409)
4,762
4,353
602

2.1.3 - Beaches and coast operations
(51)
1,371
1,320
568

2.1.4 - Roads open spaces
(667)
7,645
6,978
-

2.1.5 - Town belts
(209)
5,080
4,871
110

2.1.6 - Community environmental initiatives
-
632
632
-

2.1.7 - Walkways
-
597
597
625

2.1.8 - Biodiversity (pest management)
(38)
1,530
1,492
-

2014/15 2.1 Total
(1,985)
30,162
28,177
3,003

2013/14 Total
(1,755)
29,010
27,255
2,653

2012–22 LTP Yr 3 Total
(1,843)
31,056
29,213
2,605

Variance 2012–22 LTP Yr 3 to AP 14/15
(142)
(894)
(1,036)
398

8 New measure.

2.2 Waste reduction and energy conservation

What we do

Key projects

Measuring our performance

What it will cost

Whakaiti para, hangarua me te pena pūngao

Sustainability is about meeting our needs now without burdening future generations.

What we do

Energy efficiency and conservation

Closed landfill aftercare

Waste minimisation, disposal and recycling.

A sustainable city uses resources efficiently, re-uses or recycles them and only commits them to landfills as a last resort. Sustainability is about reducing the amount of energy we use and using clean energy from renewable sources. It is also about promoting a culture that values the environment and encourages pro-environment behaviour of everyone who lives, works, or studies here.

Key projectsTop

We will secure resource consent for Stage 4 of the Southern Landfill.

Manage the waste flows that enter the landfill.

We will:

– produce regional and city-level greenhouse gas inventories and projections
– start external engagement on climate-change adaptation, with a focus on sea level rise
– establish a Carbon Reserve Fund for future carbon sale revenues.

We will continue with the Warm Up New Zealand: Heat Smart programme, which supports improved home insulation and heating, and the Home Energy Saver Programme which provides for free energy assessments.

As part of our Smart Energy Capital project, we will:

– undertake the Schoolgen programme in partnership with Genesis Energy
– develop a model energy performance contract in conjunction with the Energy Management Association.

Measuring our performanceTop

Our targets for 2014/15 are:

90% of residents use recycling collection services weekly and 85% of users are satisfied with the service

no more than 84,000 tonnes of waste is sent to the landfill

at least 16,500 tonnes of recyclable material will be diverted from the landfill

collect 12,000 tonnes of kerbside recycling9

90% of residents are satisfied with our waste collection service and 85% agree that it provides good value for money

8GWh of energy is sourced from the Southern Landfill

the Council’s corporate energy use has decreased from the previous year

Energy use by Council pools and recreation centres has decreased from the previous year

Energy use by our Council-controlled organisations has decreased from the previous year.

we have also set a longer-term target to reduce our corporate gas emissions to 40% below 2003 levels (22,959 tonnes) by 2020 and 80% by 2050

5000 carbon credits are generated from Council reserves.

What it will costTop

2.2 Waste reduction and energy conservation
Operating expenditure 2014/15
Capital expenditure
2014/15

Income
Expenditure
Net expenditure
Total

($000)
($000)
($000)
($000)

2.2.1 - Waste minimisation, disposal and recycling management
(12,926)
12,802
(124)
776

2.2.2 - Closed landfills aftercare
-
404
404
-

2.2.3 - Energy efficiency and conservation
-
-
-
-

2014/15 2.2 Total
(12,926)
13,206
280
776

2013/14 Total
(12,393)
12,842
449
1,054

2012–22 LTP Yr 3 Total
(11,436)
13,544
2,108
7,315

Variance 2012–22 LTP Yr 3 to AP 14/15
(1,490)
(338)
(1,828)
(6,539)

9 Target updated from the LTP target for 2014/15 (14,124 tonnes).

2.3 Water

What we do

Key projects

Measuring our performance

What it will cost

Wai

Clean, safe water is essential for residents’ quality of life and wellbeing.

What we do

Water network

Water collection and treatment.

We ensure high-quality water is available at all times for drinking as well as other household and business uses. We are responsible for looking after the network, all new connections and making sure all statutory requirements and environmental standards are met.

The work is delivered by Capacity – an organisation that provides water services to Upper and Lower Hutt and on behalf of Porirua City Council. Greater Wellington Regional Council, which is responsible for the bulk supply of water, is currently considering joining the single delivery agency. This would ensure knowledge and ideas are shared to ensure a long term regional approach to water management.

Key projectsTop

We will continue to assess the ability of our water, stormwater, and wastewater services to cope with an earthquake. Such assessments include checking the seismic strength of water reservoirs, pump stations, telemetry systems and critical pipeline fittings/fixtures. Investigations are ongoing and physical strengthening work is underway on the Maldive Street, Maupuia and Linden reservoirs.

We have a programme of activities to improve the water network’s resilience and our emergency preparedness. The programme involves a range of projects including the installation of mobile water tanks at key locations and completing the installation of auto shut-off valves on reservoirs.

We will continue upgrading parts of the water network to meet new standards for firefighting.

We will continue to contribute to the Porirua Harbour and Catchment Strategy with Porirua City Council and Greater Wellington Regional Council including sediment reduction plans and community education.

Measuring our performanceTop

Our targets for 2014/15 are:

all water delivered to Wellington properties complies with Drinking Water Standards for New Zealand (2005)

at least 90% of residents agree that water services provide good value for money

the number of complaints regarding water quality (taste and odour) is less than 200 per year

95% of customers are satisfied with water quality and network service

97% of properties receive appropriate water pressure (a minimum of 250kPa)

95% of fire hydrants tested meet the New Zealand Fire Service Code of Practice for fire fighting water supply requirements

the water distribution network receives an ’a’ to ’b’ grading from the Ministry of Health (‘a’ = completely satisfactory, very low level of risk, and ‘b’ = satisfactory, very low level of risk)

97% of service requests relating to the water network are responded to within one hour of notification

no more than 14% of water in the network is unaccounted for

residential water consumption per person per day is 287 litres (residential water consumption is based on bulk water supplied less the metered commercial consumption divided by resident population)

total water consumption during the year will be less than 30 billion litres.

What it will costTop

2.3 Water
Operating expenditure 2014/15
Capital expenditure
2014/15

Income
Expenditure
Net expenditure
Total

($000)
($000)
($000)
($000)

2.3.1 - Water network
(33)
25,738
25,705
12,294

2.3.2 - Water collection and treatment
-
14,174
14,174
-

2014/15 2.3 Total
(33)
39,912
39,879
12,294

2013/14 Total
(33)
38,733
38,700
12,181

2012–22 LTP Yr 3 Total
(34)
40,366
40,332
16,178

Variance 2012–22 LTP Yr 3 to AP 14/15
1
(454)
(453)
(3,884)

2.4 Wastewater

What we do

Key projects

Measuring our performance

What it will cost

Parawai

Maintaining public health and safety and clean waterways is essential to the city’s environmental wellbeing.

What we do

Sewage collection and disposal

Sewage treatment.

Sewage collection and disposal is essential for public health and safety, and a core component of the city’s services. Without this service, Wellington could not operate as a modern, environmentally friendly city.

Key projectsTop

We are progressing with a pilot programme to investigate and evaluate how private drains contribute to wastewater overflows. This will involve constructing a hydraulic model to more accurately identify sources of excess flows, repairing private drains that contribute to the problem (until a policy is developed), and completing the development of overflow containment standards.

We will review the Trade Waste and Transportation of Waste Bylaws to protect the environment and the Council’s investment in sewerage infrastructure, while pursuing opportunities to reduce costs to businesses and stimulate economic growth.

We will reduce sewage pollution in three priority catchments, taking advantage of partnerships and other project investment such as water sensitive urban design.

Measuring our performanceTop

Our targets for 2014/15 are:

at least 90% of customers are satisfied with the wastewater network service

95% of service requests relating to the wastewater network are responded to within one hour of notification

75% of residents agree that wastewater services provide good value for money

95% of freshwater sites are within acceptable bacteria counts (E. coli)

our sewage network complies with resource consents.

What it will costTop

2.4 Wastewater
Operating expenditure 2014/15
Capital expenditure
2014/15

Income
Expenditure
Net expenditure
Total

($000)
($000)
($000)
($000)

2.4.1 - Sewage collection and disposal network
(571)
18,767
18,196
7,745

2.4.2 - Sewage treatment
(656)
22,837
22,181
-

2014/15 2.4 Total
(1,227)
41,604
40,377
7,745

2013/14 Total
(1,210)
40,476
39,266
7,411

2012–22 LTP Yr 3 Total
(1,328)
42,551
41,223
8,395

Variance 2012–22 LTP Yr 3 to AP 14/15
101
(947)
(846)
(650)

2.5 Stormwater

What we do

Key projects

Measuring our performance

What it will cost

Wai-ua

The stormwater network keeps people and property safe from flooding.

What we do

Stormwater management.

Management of the stormwater network protects residents and property from flooding. Without this service, Wellington could not operate as a modern, efficient city.

Key projectsTop

We will continue to improve the quality of stormwater collected from the city’s urban environment before it is discharged into our streams and coastal waters. This programme includes the development of integrated catchment management plans, cultural and ecological impact assessments, the investigation of key polluting sites (such as Davis Street and Houghton Bay) as well as public education campaigns.

We will develop an integrated catchment management plan for the city which will identify and assess stormwater issues associated with land uses.

Measuring our performanceTop

Our targets for 2014/15 are:

75% of residents agree that stormwater services provide good value for money

85% of customers are satisfied with the stormwater network service

95% of all service requests relating to the stormwater network are responded to within one hour of notification

no properties (buildings) are flooded as a result of a less than 1-in-50-year rain event

95% of bathing beaches comply with the Ministry of Environment guidelines (green status)

stormwater networks comply with resource consents (includes the monitoring of overflows, stormwater outfall discharge monitoring and coastal water quality monitoring).

What it will costTop

2.5 Stormwater
Operating expenditure 2014/15
Capital expenditure
2014/15

Income
Expenditure
Net expenditure
Total

($000)
($000)
($000)
($000)

2.5.1 - Stormwater management
(129)
18,777
18,648
4,255

2014/15 2.5 Total
(129)
18,777
18,648
4,255

2013/14 Total
(49)
18,138
18,089
4,012

2012–22 LTP Yr 3 Total
(51)
18,808
18,757
4,613

Variance 2012–22 LTP Yr 3 to AP 14/15
(78)
(31)
(109)
(358)

2.6 Conservation attractions

What we do

Key projects

Measuring our performance

What it will cost

Ngā painga kukume Papa Atawhai

Nature is one of Wellington’s biggest attractions.

What we do

Wellington Zoo

Zealandia.

These facilities play important conservation roles, protecting native and exotic flora and fauna. They inform and educate, attract visitors, and their existence creates economic incentives for the city’s environment to be protected and enhanced.

Key projectsTop

Wellington Zoo will continue work on Meet the Locals, a New Zealand precinct that takes visitors on a journey from the south coast of Wellington, through farming regions, to the mountains of the South Island.

We will provide $875,000 in funding for Zealandia to help secure its future as an important Wellington asset.

The redirection of $627,000 into our economic development fund for projects that add to regional amenities could be applied to conservation attractions, where the business cases are considered appropriate.

Measuring our performanceTop

Our targets for 2014/15 are:

at least 230,111 visitors to the Zoo10

at least 93,430 visitors to Zealandia11

at least 5,281 people will attend an education programme at Zealandia.

What it will costTop

2.6 Conservation attractions
Operating expenditure 2014/15
Capital expenditure
2014/15

Income
Expenditure
Net expenditure
Total

($000)
($000)
($000)
($000)

2.6.1 - Conservation visitor attractions
-
6,126
6,126
794

2014/15 2.6 Total
-
6,126
6,126
794

2013/14 Total
-
5,779
5,779
1,892

2012–22 LTP Yr 3 Total
-
5,839
5,839
812

Variance 2012–22 LTP Yr 3 to AP 14/15
-
287
287
(18)

10 Target updated from the LTP target for 2014/15 (215,054 visitors).

11 Target updated from the LTP target for 2014/15 (94,859 visitors).

Economic development

Whanaketanga ōhanga

3 Economic development Whanaketanga ōhanga

“Mauri mahi, mauri ora; mauri noho, mauri mate”

“Industry begets prosperity (security); idleness begets poverty (insecurity).”

3.1 City promotions and business support

What we do

Key projects

Measuring our performance

What it will cost

Ngā whakatairanga tāone me ngā āwhina pakihi

By supporting city promotions, events and attractions, we underscore Wellington’s reputation as a great place to live and visit.

What we do

Tourism promotions (Positively Wellington Tourism)

Events attraction and support

Convention venues (Positively Wellington Venues)

Retail support (free weekend parking)

International relations

Grants and creative workforce

Destination Wellington

City Innovation projects

This is a priority area of focus for the Council. The economic prosperity of the city is closely linked to residents’ quality of life. It provides the resources for businesses, the Council and individuals to contribute to the vibrancy of the city and invest in its future development.

We are committed to taking the steps we can to enable individual entrepreneurs and businesses to flourish. This includes being ‘open for business’ by making it easy and cost-effective to work with the Council.

We also decided recently to amalgamate the activities of our tourism agency (Positively Wellington Tourism) with those of our conference and entertainment organisation (Positively Wellington Venues) into a single Council-controlled organisation. This new entity will result in greater co-ordination of, and focus on, activities that contribute to economic growth. It will also cut costs in the areas of governance and overheads. The alignment of the work of this entity and that delivered by Grow Wellington will be essential to ensure the best economic outcomes for the city and region.

Key projectsTop

We will host numerous events including teams and matches as part of the FIFA Under 20 World Cup, the ICC Cricket World Cup, play our part in commemorations marking the centenaries of the start of the First World War and of Gallipoli, and celebrate the 150th anniversary of Wellington’s status as Capital City.

Following adoption of our Business Improvement District (BID) Policy in 2013, a BID is being established in the Miramar commercial area. Community support for the BID has resulted in a targeted rate being proposed in the 2014/15 Draft Annual Plan. The establishment of further BIDs is being explored with other suburban commercial areas.

We propose to invest in our Economic Development Fund again in 2014/15 to support proposals that will contribute to economic growth and create jobs.

We will continue to fund a free wi-fi service in the central business district.

We will develop and assess projects that support our economic growth agenda (see the 8 Big Ideas in the Overview section).

We will progress initiatives that support existing enterprises and start-ups in areas such as skills development and access to mentors, finance and research.

Measuring our performanceTop

Our targets for 2014/15 are:

the number of guest nights from international visitors will increase by 2% from 2013/14

International and domestic visitors will stay an average of two nights

New Zealand market visitors will increase by 2% from the previous year

partnership funding with Positively Wellington Tourism will be maintained at less than 50% of total income

we will continue to hold events and activities with our formal international partnership cities (in Wellington and overseas)

at least 951 hire days across all Wellington Venues12

400,000 attendees at council supported events

95% residents are satisfied with council supported events and festivals

Events Development Fund - There will be a 20:1 ratio of spend to economic impact

at least 95% of grants funds will be successfully allocated (through milestones being met)13

during the week the carpark turnover rate is 6.8 cars per day

during the weekend the carpark turnover rate is 5.2 cars per day.

What it will costTop

3.1 City promotions and business support
Operating expenditure 2014/15
Capital expenditure
2014/15

Income
Expenditure
Net expenditure
Total

($000)
($000)
($000)
($000)

3.1.1 - Tourism promotion (PWT)
-
5,630
5,630
-

3.1.2 - Convention venues
(14,035)
17,763
3,728
1,341

3.1.3 - Retail support (free weekend parking)
-
1,449
1,449
-

3.1.4 - Grants and creative workforce
-
1,262
1,262
-

3.1.5 - Events attraction and support
-
4,313
4,313
-

3.1.6 - Regional and external relations
-
4,881
4,881
-

3.1.7 - Destination Wellington
-
2,510*
2,510
-

2014/15 3.1 Total
(14,035)
37,808
23,773
1,341

2013/14 Total
(186)
19,080
18,894
765

2012–22 LTP Yr 3 Total
-
19,588
19,588
1,186

Variance 2012–22 LTP Yr 3 to AP 14/15
(14,035)
18,220
4,185
155

*This now includes City Innovation project costs, which were previously allocated across Council.

12 Target updated due to changes to how hire days are calculated.

13 Measure reworded for clarification and consistency.

Cultural wellbeing

Oranga ahurea

4 Cultural wellbeing Oranga ahurea

“He kura te toiora ahurea tangata”

“A person’s cultural wellbeing is precious. The value of a human being and the contribution each makes to the wellbeing of the group.”

4.1 Arts and cultural activities

What we do

Key projects

Measuring our performance

What it will cost

Ngā mahi toi me ngā ngohe ahurea

Supporting arts activity adds vibrancy to the city as well as promoting inclusive, tolerant and strong communities.

What we do

Galleries and museums

Visitor attractions (Te Papa and Carter Observatory)

Arts and cultural festivals

Cultural grants

Access and support for community arts

Arts partnerships

Regional amenities.

Our arts activities build on Wellington’s reputation as New Zealand’s arts and culture capital. A strong arts and culture sector contributes to a diverse economy, healthy and connected communities and high quality of life. Wellingtonians also tell us that ‘creativity’ is an important part of Wellington’s identity and an important reason for why they choose to live here. As well as undertaking some of our own projects, we support the activities of arts organisations through our funding of the Wellington Museums Trust, the Public Arts Fund, the Cultural Grants Pool and the Creative Communities Scheme.

Key projectsTop

We will maintain our contribution to the Wellington Regional Amenities Fund at $609,200; the same level as our 2013/14 contribution. This fund provides ‘top up’ funding to entities that provide regional benefits, primarily in areas of arts, culture and environmental attractions and events.

We will support one artist from Asia to come to Wellington, and one Wellington-based artist to go to Asia as part of the Wellington Asia Residency Exchange programme, undertaken in partnership with Asia New Zealand.

We will complete our review of the Toi Pōneke Arts Centre and outline a set of recommendations for its future.

Measuring our performanceTop

Our targets for 2014/15 are:

90% are satisfied with Council supported arts and cultural festivals

90% of users are satisfied with Toi Pōneke facilities and services

95% of cultural grant applicants are satisfied with support and advice received from the Council

at least 95% of projects funded through Arts and Culture grants meet agreed outcomes14

90% of project outcomes are achieved (weighted by $ value)15

1.35 million people will visit Te Papa, including 495,000 New Zealand visitors and 352,000 from outside the region

museums and galleries (including Carter Observatory) will have a total of 583,123 visits

750,000 (estimated) attend arts and cultural festivals held in the city

the total number of performers and attendees at supported events will increase on the previous year

Arts and Culture grants — 50% of first-time applicants are successful

support artists and art projects through the Public Art Fund (there is no target for this measure).

What it will costTop

4.1 Arts and culture activities
Operating expenditure 2014/15
Capital expenditure
2014/15

Income
Expenditure
Net expenditure
Total

($000)
($000)
($000)
($000)

4.1.1 - Galleries and museums (WMT)
-
8,412
8,412
-

4.1.2 - Visitor attractions (Te Papa/Carter Observatory)
-
2,981
2,981
-

4.1.3 - Arts and cultural festivals
(410)
2,597
2,187
-

4.1.4 - Cultural grants
-
1,053
1,053
-

4.1.5 - Access and support for community arts
(68)
613
545
26

4.1.6 - Arts partnerships
(535)
1,938
1,403
-

4.1.7 - Regional Amenities Fund
-
609
609
-

2014/15 4.1 Total
(1,013)
18,203
17,190
26

2013/14 Total
(1,013)
17,361
16,348
26

2012–22 LTP Yr 3 Total
(1,107)
18,980
17,873
27

Variance 2012–22 LTP Yr 3 to AP 14/15
94
(777)
(683)
(1)

14 Measure reworded for clarification and consistency.

15 Measure reworded for clarification and consistency.

Social and recreation

5.1 Recreation promotion and support

5.2 Community support

5.3 Public health and safety

Pāpori me te hākinakina

5 Social and recreation Pāpori me te hākinakina

“Whāia ngā mahi a te rēhia”

“Engage in the pursuit of pleasure.”

5.1 Recreation promotion and support

What we do

Key projects

Measuring our performance

What it will cost

Ngā rauhanga hapori

We provide a wide variety of community facilities throughout the city to encourage quality of life and healthy lifestyles.

What we do

Swimming pools

Sportsfields

Recreation centres

Recreation partnerships and programmes

Playgrounds

Marinas

Berhampore Golf Course.

To encourage people of all ages to engage in social and recreational activities that help them live more active and healthy lives, we provide a wide range of high quality sporting and recreation facilities throughout the city. A number of facilities also attract visitors, and raise the city’s profile, by hosting national and international events.

Key projectsTop

We will complete the addition of a new teaching pool, a spray pool and improved changing facilities at Keith Spry Pool.

We will upgrade the Makara Model School playground.

We will explore opportunities and undertake feasibility work on the development of recreational/sporting/community hubs at Kilbirnie Park (the Toitu Pōneke Hub), Hataitai Park, Wakefield Park and Alex Moore Park.

We will continue to improve irrigation, drainage and the installation of a sand carpet at Nairnville Park.We will upgrade the upper field at Redwood Park in Tawa with a sand-based surface.

We will develop a ki-o-rahi programme through an Active Communities grant from Sport NZ.

Measuring our performanceTop

Our targets for 2014/15 are:

90% of users are satisfied with Council swimming pools, recreation centres and playgrounds

95% of users are satisfied with the ASB Centre

85% of users are satisfied with sportsfields 80% of residents agree that Council recreation services and facilities provide good value for money

1.4 million people use swimming pools and 350,000 use recreation centres

519,612 people will visit the ASB Centre during peak times and 174,420 during off-peak times

71% of ASB Centre courts will be used during peak times, and 35% during off-peak times

of the games that are scheduled for Council outdoor sportsfields in summer 90% are played, and in winter 80% are played

96% of marina berths are occupied

artificial sportsfields are used 80% of the time during peak winter times and 60% during peak summer times

artificial sportsfields are used 15% of the time during off-peak winter times and 10% during off-peak summer times

for the hours the Council uses college artificial sportsfields, 80% are used during winter and 60% in summer.

What it will costTop

5.1 Recreation promotion and support
Operating expenditure 2014/15
Capital expenditure
2014/15

Income
Expenditure
Net expenditure
Total

($000)
($000)
($000)
($000)

5.1.1 - Swimming Pools
(7,445)
19,174
11,729
1,369

5.1.2 - Sportsfields
(286)
3,339
3,053
518

5.1.3 - Sportsfields (Synthetic)
(538)
1,453
915
50

5.1.4 - Recreation Centres
(2,853)
9,987
7,134
26

5.1.5 - Recreation partnerships
-
1,039
1,039
352

5.1.6 - Playgrounds
-
721
721
610

5.1.7 - Marinas
(574)
571
(3)
96

5.1.8 - Golf Course
(68)
240
172
-

5.1.9 - Recreation programmes
(115)
483
368
-

2014/15 5.1 Total
(11,879)
37,007
25,128
3,021

2013/14 Total
(11,748)
37,267
25,519
4,837

2012–22 LTP Yr 3 Total
(12,388)
37,837
25,449
4,607

Variance 2012–22 LTP Yr 3 to AP 14/15
509
(830)
(321)
(1,586)

5.2 Community support

What we do

Key projects

Measuring our performance

What it will cost

Tautoko hapori

We provide support for all communities and affordable housing for those in need.

What we do

Libraries

Access support (Leisure Card)

Community advocacy

Grants (social and recreation)

Community centres and halls

Housing.

We want Wellington to be a people-centred city where people feel welcome – a city that fosters diverse and inclusive communities.

To enable this we provide libraries, halls and community centres that act as focal points for community activity and provide opportunities for people to connect with each other.

We support partnerships and programmes within communities and neighbourhoods as a way of building local community resilience. We work with our partners to ensure the city’s social infrastructure supports vulnerable people in the city. Through the provision of social housing we help meet the basic housing needs of many people in our city.

Key projectsTop

In 2007, the Council entered into an agreement with the Crown that will see the Council continue to provide social housing, at roughly the same levels, for 30 years. As part of this agreement, and with funding from the Government, we will complete the upgrade of the Berkeley Dallard and Etona housing complexes. We will also start work on the Marshall Court and Kotuku complexes depending on Council approval, we will undertake design work towards the upgrade of the Arlington complex.

We will review the Social Housing Rental Policy.

We will start feasibility work on a community hub/centre for Newtown, which may capture the opportunity for a number of social agencies to be co-located with our own Council services.

We will undertake work on the design and Resource Consent application for the new library in Johnsonville.

We will support and encourage community resilience, strong neighbourhoods and community networks. We will also work with local agencies and organisations to ensure welfare support is in place for people and animals following an emergency event.

We will reinstate Children’s literacy programmes in our libraries.

We will finalise and implement Te Mahana – a strategy to deal with homelessness. These include a review of how we support community agencies, and how our support aligns with that of the Government.

We will implement the Government’s recent alcohol reforms and the Council’s own Alcohol Management Strategy.

Measuring our performanceTop

Our targets for 2014/15 are:

90% of library users are satisfied with its services and facilities

85% of residents are satisfied with the range and variety of collection

85% of residents agree that library services and facilities provide good value for money

130,000 use recreation centre programmes

leisure cards are used at least 97,000 times

85% of residents find access to Council recreation facilities and programmes easy or very easy

90% of tenants are satisfied with services and facilities

90% of tenants rate the overall condition of their house/apartment as good or very good

City Housing services and facilities comply with all legislative requirements (eg the Residential Tenancies Act and the Building Act)

75% of tenants feel safe in their complex at night

65% of tenants have positive social contact in their complex

90% of housing facilities are occupied

98% of all tenants (existing and new) are housed within the existing policy

85% of residents rate services and facilities as good value for money

achieve agreed milestones, design standards and budget in accordance with the agreed works programme and Deed of Grant between the Crown and the Council

90% of community groups are satisfied with Council relationships

65% of residents engage in ‘neighbourly’ behaviours

80% of Accessible Wellington Action Plan initiatives are progressed or completed

at least 95% of projects funded through Social and Recreation grants meet agreed outcomes16

90% of project outcomes are achieved (weighted by $ value)17

69% of residents are registered library users18

there are 2.3 million physical visits and 1.4 million website visits to our libraries

an estimated 78,000 people attend various library programmes19

3 million items are issued from libraries

67% of e-library users are satisfied with the online library collection

community centres and halls are 45% occupied20

100% of known homeless people are supported by agencies.

What it will costTop

5.2 - Community support
Operating expenditure 2014/15
Capital expenditure
2014/15

Income
Expenditure
Net expenditure
Total

($000)
($000)
($000)
($000)

5.2.1 - Libraries
(1,733)
20,787¹
19,054
2,530

5.2.2 - Access support (Leisure Card)
-
53
53
-

5.2.3 - Community advocacy
-
1,454
1,454
-

5.2.4 - Grants (Social and Recreation)
(19)
2,795
2,776
-

5.2.5 - Housing
(54,075)
25,417
(28,658)²
36,647

5.2.6 - Community centres and halls
(220)
2,947
2,727
22

2014/15 5.2 Total
(56,047)
53,453
(2,594)
39,199

2013/14 Total
(53,247)
52,656
(591)
32,724

2012–22 LTP Yr 3 Total
(48,629)
52,188
3,559
35,639

Variance 2012–22 LTP Yr 3 to AP 14/15
(7,418)
1,265
(6,153)
3,560

¹This figure includes the direct costs of library services and a proportion of the Council’s internal corporate costs. The direct costs of providing library services are proposed to increase. This has been offset to a degree through a reduction in back-office costs, which has reduced the internal charges applied to library (and all other) services.

²Net expenditure on the housing activity includes Government funding for capital expenditure upgrades of Council owned social housing.

16 Measure reworded for clarification and consistency.

17 Measure reworded for clarification and consistency.

18 Target updated due to changes in how it is calculated.

19 Target updated from the LTP target for 2014/15 (70,000 attendees).

20 Target updated due to changes in how it is calculated.

5.3 Public health and safety

What we do

Key projects

Measuring our performance

What it will cost

Hauora tūmatanui me te haumanu

We work to protect Wellingtonians from threats to their health and safety.

What we do

Burials and cremations

Public toilets

Public health regulations

City safety

Wellington Regional Emergency Management Office (WREMO).

Wellington enjoys a reputation as a safe city with a vibrant CBD. We work to maintain public confidence in the safety of the city’s streets and suburbs.

Wellington’s location makes earthquake-preparedness particularly important. The city also must be prepared for other civil emergencies such as flooding and tsunami.

We have legislative requirements to maintain public health standards by regulating food and liquor outlets, animals, trade waste and managing environmental noise problems.

We also provide public toilets and cemeteries as part of our public health activities.

Key projectsTop

We expect to close the Karori Cemetery crematorium in 2014/15. To continue providing this service, and meet air quality regulations, we would have to spend a significant amount to upgrade this facility. We believe that its current utilisation does not justify the expense and there are alternative providers of this service in the city. We are not planning any changes to burial services.

We will review and implement changes related to the Dogs Policy and Animal Bylaw. We will implement legislative changes as a result of the introduction of the Sale and Supply of Alcohol Act and the introduction of the new Food Act.

We will act on our Graffiti Management Plan, which provides guidelines for the prevention and removal of graffiti vandalism. This will include funding volunteer graffiti eradication initiatives.

We will continue to support Wellington’s World Health Organisation Safe City status through strengthening partnerships with community patrols and neighbourhood support groups, our Local Hosts programme and by working with the community and the Police to monitor CCTV safety cameras in the city.

We will investigate how we could work with the Police to help establish Māori, Pacific and/or ethnic wardens in the city.

We will continue to support the Wellington Regional Emergency Management Office – a shared emergency management organisation for the region.

Measuring our performanceTop

Our targets for 2014/15 are:

600 trained civil defence volunteers

the percentage of complaints received about dogs will not increase from the previous year

100% of urgent dog control requests are responded to within one hour and 99% of non-urgent request within 24 hours

98% of food premises with an inspection rating of ‘excellent’ or ‘very good’ maintain or improve their inspection rating

80% of residents are satisfied or neutral (neither satisfied nor dissatisfied) with the cleanliness of Council public toilets

95% of Council public toilets meet required cleanliness and maintenance performance standards

100% of urgent request about Council public toilets are responded to within four hours and 95% of non-urgent requests are responded to within three days

100% of planned inspections are carried out for high-risk (category 3) premises

25% of inspections of high-risk premises (category 3) are carried out during high trading hours.

What it will costTop

5.3 - Public health and safety
Operating expenditure 2014/15
Capital expenditure
2014/15

Income
Expenditure
Net expenditure
Total

($000)
($000)
($000)
($000)

5.3.1 - Burials and cremations
(828)
1,637
809
280

5.3.2 - Public toilets
-
2,432
2,432
987

5.3.3 - Public health regulations
(3,182)
4,726
1,544
-

5.3.4 - City safety
-
2,138
2,138
-

5.3.5 - WREMO
(29)
1,387
1,358
43

2014/15 5.3 Total
(4,039)
12,320
8,281
1,310

2013/14 Total
(3,495)
11,223
7,728
717

2012–22 LTP Yr 3 Total
(3,560)
12,589
9,029
934

Variance 2012–22 LTP Yr 3 to AP 14/15
(479)
(269)
(748)
376

Urban development

6.1 Urban planning, heritage and public spaces development (including Waterfront development)

6.2 Building and development control

Tāone Tupu Ora

6 Urban development Tāone Tupu Ora

“Ka mate kāinga tahi, ka ora kainga rua”

“The original dwelling place has been abandoned, but the second is secure.”

6.1 Urban planning, heritage and public spaces development (including Waterfront development)

What we do

Key projects

Measuring our performance 

What it will cost

Whakahaerenga whare me te whanaketanga

Our focus is on enhancing Wellington as a compact, vibrant, attractive and safe city that is built on a human scale and is easy to navigate.

What we do

Built heritage development

Urban planning and policy development

Public space and centres developments

Waterfront development (see Waterfront Development Plan on page 112).

Our urban planning and policy development work provides guidance on how and where the city should grow. It’s important this happens in a way that retains the things residents like about Wellington – such as its compact nature, the fact that it has a true ‘heart’ around the city centre and harbour, and the character of its hillside residential areas.

The Council is required to prepare a District Plan under the Resource Management Act 1991. The District Plan is the primary document that manages land use and development within the Council’s territorial boundaries.

We also look after and develop public spaces – including the development of the waterfront. Development of public squares and parks enhances people’s enjoyment of the city and contributes to our civic pride and our ‘sense of place’.

We also help preserve the city’s heritage through District Plan provisions and by providing financial assistance through the Built Heritage Incentive Fund, which supports the remedying of earthquake-prone features, the development of conservation plans or initial reports from engineers for earthquake strengthening activities.

Key projectsTop

We will be progressing a range of projects as part of our Central City Framework. The priority projects we plan to work on in 2014/15 include:

– Parliamentary Precinct – public space enhancements and improved connections ahead of the 150-year anniversary of Wellington becoming New Zealand’s Capital City.
– Memorial Park – this will be complete in time for the ANZAC commemorations and the 150th anniversary of our Capital City status in 2015.

We will complete work as part of the Kilbirnie Town Centre upgrade project. This will include public space improvements from the Coutts Street and Onepu Road corner to connect with stage one of the town centre upgrade at the southern end of Bay Road.

We are bringing the activities of Wellington Waterfront Limited in-house. The following capital works will be progressed in the coming year:

– The Promenade – we will continue to improve the connection from the Meridian building through to Shed 21 and the Railway Station in consultation with stakeholder groups.
– Wharf pile maintenance – the third stage of the waterfront-wide pile repair and refurbishment programme was planned to take place in 2014/15, but has now been scheduled to be completed in 2016/17.
– Queens Warf Precinct – we will continue the development of an adventure activities area within the Shed 6 Harbour Basin. Options will continue to be explored with respect to opportunities around the Outer T of Queens Wharf.
– Frank Kitts Park Precinct – we will complete the redevelopment of the children’s playground.
– Kumutoto Precinct – we will continue work on the development opportunities for site 10, which is at an advanced stage, and site 9. With the delay in starting development on the site, the timing of upgrading the public space in the precinct has now been budgeted for 2015/16, with wider works occurring in the subsequent year. This will be subject to change as plans for these sites progress.

Measuring our performance Top

Our targets for 2014/15 are:

80% of residents agree the city is developing in a way that takes in to account its unique urban character and natural environment

90% of District Plan change appeals are resolved

87% of residents agree the central city is lively and attractive

65% of residents agree their local suburban centre is lively and attractive

90% of residents rate their waterfront experience as good or very good

95% of grants funds are successfully allocated (through milestones being met)

no District Plan-listed items are removed or demolished

75% of residents agree that heritage items are properly valued and protected in the central city

70% of residents agree that heritage items are properly valued and protected in suburban areas.

What it will costTop

6.1 Urban planning, heritage and public spaces development
Operating expenditure 2014/15
Capital expenditure
2014/15

Income
Expenditure
Net expenditure
Total

($000)
($000)
($000)
($000)

6.1.1 - Urban planning and policy
(20)
1,819
1,799
-

6.1.2 - Waterfront development
(3,863)
11,226
7,363
2,712

6.1.3 - Public spaces and centres development
-
1,763
1,763
1,984

6.1.4 - Built heritage development
-
1,026
1,026
-

2014/15 6.1 Total
(3,883)
15,834
11,951
4,696

2013/14 Total
(20)
7,274
7,254
12,853

2012–22 LTP Yr 3 Total
(21)
6,948
6,927
11,574

Variance 2012–22 LTP Yr 3 to AP 14/15
(3,862)
8,886
5,024
(6,878)

6.2 Building and development control

What we do

Key projects 

Measuring our performance

What it will cost

Māherehere tāone, whanaketanga wāhi tuku-ihotanga, wāhi tūmatanui

We ensure developments do not harm the environment and building works are safe and comply with the Building Code.

What we do

Building control and facilitation (building consents)

Development control and facilitation (resource consents)

Earthquake risk mitigation – built environment

Weathertight homes.

All cities control building and development work according to the provisions of the Building Act, the Resource Management Act and their District Plans. These controls are necessary to ensure buildings are safe and comply with the Building Code, and resources are used sustainably to protect public health and safety and to protect future users of land and buildings. They’re also needed to protect urban character and to preserve the city’s heritage.

We also administer an Earthquake-prone Buildings Policy. The policy sets in place processes to identify buildings that are below the required earthquake standards and the requirements and timeframes for building owners to bring them up to the necessary standard. Implementation of the policy is a statutory requirement.

Key projects Top

As part of our commitment to increasing the resilience of our city, and being a Council that is ‘open for business’, we have made the following amendments to the Rates Remission Policy to support and encourage building owners to undertake earthquake strengthening work:

– not requiring the payment of targeted rates on a building while it is being strengthened but is not able to be tenanted; and
– where the owners have chosen to strengthen their building, holding rates at pre-strengthening levels plus the average annual rates increase for three years following strengthening; or
– where the owners have chosen to remove the building from the site, remitting 10% of the rates payable on the property for a period of three years.

This proposal will not increase the Council’s rates requirement, but it will mean other ratepayers will pay a marginally higher proportion on their rates bill to offset the relief provided to the owners of earthquake-prone buildings. The actual timing and quantum of this impact will depend on when earthquake strengthening occurs and the valuation changes of those buildings but has been estimated to be between $200,000 and $500,000 per annum (or 0.08 to 0.2 percent on the average rates bill).

We also plan to establish a fund so we can refund 10 percent of building consent fees (up to $5000 in total) for earthquake-prone building projects to be applied upon completion of strengthening works. This would cost $100,000 per annum.

Legislation is moving towards a risk-based approach to building control with more emphasis placed on licensed building practitioners taking responsibility for the work they carry out. We will have less involvement in building projects for low-risk residential work and large commercial projects involving industry professionals. These changes may mean we become more involved in enforcement action where licensed building practitioners have failed to meet their responsibilities.

We will continue to earthquake-strengthen the Council’s portfolio of properties. This work is to meet legislative requirements and ensure the safety of structures for users and the general public. We plan to proceed with the strengthening of the Town Hall, while also considering how this can be enhanced for the economic benefit of the city.

Measuring our performanceTop

Our targets for 2014/15 are:

100% of building consents issued within 20 working days

100% of code of compliance certificates issued within 20 working days

100% of land information memorandums (LIMs) issued within 10 working days

100% of resource consents (non-notified) issued within 20 working days

90% of resource consents are monitored within three months of project work starting

100% of section 223 subdivision certificates are issued within statutory timeframes (10 working days)

90% of noise control (excessive noise) complaints are investigated within one hour

98% of environmental complaints are investigated within 48 hours

70% of customers rate building control services as good or very good

70% of customers rate development control services as good or very good

Retention of Building Consent Authority (BCA) accreditation

100% of earthquake-prone building notifications (under section 124 of the Building Act) are issued without successful challenge

monitor our progress on the earthquake strengthened Council buildings and stay on target

monitor the number of claims accepted and the number of remediations claimed through the Weathertight houses – Financial Assistance Package.

What it will costTop

6.2 Building and development control
Operating expenditure 2014/15
Capital expenditure
2014/15

Income
Expenditure
Net expenditure
Total

($000)
($000)
($000)
($000)

6.2.1 - Building control and facilitation
(9,736)
12,801
3,065
-

6.2.2 - Development control and facilitation
(2,943)
5,728
2,785
-

6.2.3 - Earthquake risk mitigation - built environment
-
1,469
1,469
17,651

2014/15 6.2 Total
(12,679)
19,998
7,319
17,651

2013/14 Total
(11,453)
20,360
8,907
13,234

2012–22 LTP Yr 3 Total
(11,316)
19,645
8,329
14,454

Variance 2012–22 LTP Yr 3 to AP 14/15
(1,363)
353
(1,010)
3,197

Transport

7.1 Transport

7.2 Parking

Waka

7 Transport Waka

“He ihu waka, he ihu whenua”

“A canoe bow, a headland.”

7.1 Transport

What we do

Key projects

Measuring our performance

What it will cost

Waka

We manage the transport network so it is sustainable, safe and efficient.

What we do

Transport planning

Vehicle network

Passenger transport network

Pedestrian and cycle network

Network-wide control

Road safety.

A well-planned, efficient transport system, which allows for the easy movement of people and goods to and through the city, is critical for economic growth and for residents’ quality of life. Between 200,000 and 300,000 people use some form of the city’s transport network every day.

Wellingtonians are enthusiastic users of public transport and an effective public transport network helps reduce congestion and reduces the city’s carbon emissions. A high proportion of the city’s residents walk and cycle to work instead of using private cars.

Key projectsTop

We will start work on upgrading the cycling route from Island Bay to the CBD. We will also begin to make safety improvements on some of the other 19 cycling routes. This will also include implementing 30kmh speed limit reduction in the CBD.

We will start road improvements in partnership with NZTA to improve safety and benefit the community in Johnsonville.

We will continue to work with Greater Wellington Regional Council and NZTA on the Wellington Public Transport Spine Study. This study looks at the feasibility of options for a future high quality, high frequency public transport spine through central Wellington between the Railway Station and Newtown (and beyond).

We will continue to work closely with NZTA on a range of state highway projects including the Basin Reserve, Memorial Park, Inner City Bypass capacity enhancements and the Buckle Street to Cobham Drive project including Mt Victoria Tunnel duplication.

We will continue strengthening and rebuilding works for tunnels and bridges throughout the city. In 2014/15, we will work on the Hataitai Bus Tunnel and collaborate with NZTA on the Mt Victoria tunnel options.

Measuring our performanceTop

Our targets for 2014/15 are:

70% of residents agree the transport system allows easy movement for vehicles around the city

95% of residents agree the transport system allows easy movement for pedestrians around the city

average peak travel times between the CBD and suburbs are maintained or improved (for travel from Miramar, Karori, Island Bay and Johnsonville)

37% of residents, who travel to the central city on weekdays, take the bus

6% of residents, who travel to the central city on weekdays, take a train

24% of residents, who travel to the central city on weekdays, walk

5% of residents, who travel to the central city on weekdays, cycle

an increase in the number of pedestrians and cyclists entering the CBD on weekdays from 2013/14

45% of primary school children walk to and from school on a daily basis

1,005,847 people will travel on the Cable Car

75% of residents rate the road and footpath network as good or very good 100% of urgent service requests are responded to in two hours and non-urgent within 15 days

70% of roads meet Smooth Roads Standards (NAASRA)

97% of footpaths meet Council condition standards

100% of street lighting for major roads meets national standards

85% of residents are satisfied with street lighting in the central city and 75% are satisfied with street lighting in suburban areas

50% of cycleway users are satisfied with cycleway safety and 60% are satisfied with maintenance

75% of residents agree that transport network services offer good value for money

90% of seawalls and retaining walls have a condition rating of 3 or better

our quarry operations remain legislatively compliant

road casualties will reduce (with fewer than 15.2 per 10,000 population for vehicles, 4 for pedestrians and 3.3 for cyclists).21

What it will costTop

7.1 Transport
Operating expenditure 2014/15
Capital expenditure
2014/15

Income
Expenditure
Net expenditure
Total

($000)
($000)
($000)
($000)

7.1.1 - Transport planning
(56)
1,108
1,052
-

7.1.2 - Vehicle network
(1,284)
23,136
21,852
24,565

7.1.3 - Cycle network
(27)
692
665
4,352

7.1.4 - Passenger transport network
(1,025)
1,612
587
161

7.1.5 - Pedestrian network
(39)
6,579
6,540
3,851

7.1.6 - Network-wide control and management
(2,101)
6,285
4,184
2,055

7.1.7 - Road safety
(1,737)
5,971
4,234
2,729

2014/15 7.1 Total
(6,269)
45,383
39,114
37,713

2013/14 Total
(6,264)
43,319
37,055
31,320

2012–22 LTP Yr 3 Total
(6,194)
47,707
41,513
37,003

Variance 2012–22 LTP Yr 3 to AP 14/15
(75)
(2,324)
(2,399)
710

21 Target changed from ‘maintain or reduce’ to ‘reduce’.

7.2 Parking

What we do

Key projects

Measuring our performance

What it will cost

Ratonga tūnga waka

Parking in the CBD is important for shoppers, tourists and those working in and visiting the city.

What we do

We provide about 10 percent of the parking in central Wellington. This includes on-street parking spaces and off-street parking at various sites. Parking is important for shoppers, people working in the city, visitors to the city, and people coming in to the city for recreational activities.

Key projectsTop

There will be an in-house Council group established to provide all parking services and enforcement from 1 July 2014.

We are undertaking a trial of parking sensors for enforcement purposes and to gather information on occupancy. If the trial proves effective these may be installed across the city from 2015/16.

Measuring our performanceTop

Our targets for 2014/15 are:

the average weekday on-street car park turnover rate is 6.8 cars per day, and for weekends it is 5.2 cars per day

on average, 75% of on-street car parks are occupied

95% compliance with Council on-street car park time restrictions and 90% compliance with payment requirements

45% of residents are satisfied with the availability of on-street car parking during the week

60% of residents are satisfied with the availability of on-street car parking during the weekend

the percentage of residents that perceive parking enforcement is fair will increase from previous year.

What it will costTop

7.2 Parking
Operating expenditure  2014/15
Capital expenditure
 2014/15

Income
Expenditure
Net expenditure
Total

($000)
($000)
($000)
($000)

7.2.1 – Parking
(26,022)
11,936
(14,086)
180

2014/15 7.2 Total
(26,022)
11,936
(14,086)
180

2013/14 Total
(26,792)
11,154
(15,638)
1

2012–22 LTP Yr 3 Total
(29,496)
13,110
(16,386)
-

Variance 2012–22 LTP Yr 3 to AP 14/15
3,474
(1,174)
2,300
180

Our finances

This section contains:

financial overview

Financial overview

At a glance

Financial strategy at a glance

Finances at a glance

Capital expenditure

Consolidated Activity Statements – Operating Expenditure

Consolidated Activity Statements – Capital Expenditure and Loans to Other Organisations

Consolidated Activity Statements – Borrowing

Overview By Activity Areas

Reconciliation of operational funding

At a glance

$404.2 million operating expenditure

$152.0 million capital expenditure – this excludes capital expenditure carry-forwards from 2013/14

63 percent of operational expenditure is funded by rates

Total rates forecast 2.49 percent higher than in 2013/14

Forecast year-end borrowings $404.2 million.

Financial strategy at a glance

The Council implemented its Financial Strategy as part of the 2012–22 Long-term Plan. This guides the decisions we make now and in the future to ensure our investment in the city is financially sustainable. In many ways, our strategy formalised our current practice and complements our existing financial policies. The strategy is founded on the following guiding principles:

fairness and equity

willingness to pay

value for money

risk management and assessment

good financial governance and stewardship.

The Council is in a sound financial position as indicated by our AA Standard and Poor’s credit rating. We will continue to manage the financial challenges associated with the costs of earthquake-strengthening our assets and our weathertight homes liabilities.

Setting limits on our rates and borrowings requires prioritisation of spending decisions and ongoing review of existing services. The parameters we set for our rates levels and rates increases as part of the 2012–22 Long-term Plan are:

Rates limits: | 2014/15
Rates increase target (after growth)22 | 1.60%
Rates increase limit (after growth)23 | 2.50%
Rates increase (after growth) | 2.49%
Rates limit ($’000)24 | 254,289

The Annual Plan rates increase is 2.49 percent, which is in line with the rates limit set in our financial strategy. This is an improvement on the the Long-term Plan where the projected rates increase for 2014/15 was 3.17 percent.

The parameters we have set for borrowings and capital expenditure as part of the 2012–22 Long-term Plan are:

Borrowings limits:
Operating Targets
Prudential Limits
Annual Plan
2014/15

Net borrowing as a percentage of equity
<10%
<10%
6.0%

Net borrowing as a percentage of income
<105.0%
<150.0%
100.0%

Net interest as a percentage of income
<15.0%
<15.0%
5.1%

Net interest as a percentage of annual rates income
<20.0%
<20.0%
9.0%

Liquidity (term borrowing committed loan facilities to 12 month peak net borrowing forecast)
>110.0%
>110.0%
>110.0%

Borrowings funded capital expenditure target - over legislative Council triennium
$45.0m
$60.0m
$46.1m

For 2014/15 we are within all of the borrowings limits.

Finances at a glance

Operational expenditure

Operational expenditure provides for all of our day-to-day operations and services, from waste disposal, water supply and maintaining our roads, to issuing building consents, running our recreational facilities and maintaining our parks and gardens.

The Council plans to spend $404 million on operational expenditure in 2014/15.

The graph below shows this operational expenditure by activity area in 2014/15. This compares with $386 million forecast for 2014/15 in the 2012–22 Long-term Plan.

Sources of operational funding

Some 66 percent of our operational expenditure is funded from a combination of general rates (paid on all properties) and targeted rates. The remainder is funded from user charges, ground and commercial lease income, dividends and other revenue such as grants and government subsidies.

The graph below shows how our operational expenditure will be funded in 2014/15.

Detailed information on all of our rating mechanisms is included on page 84 of the plan.

Your rates

For 2014/15, total rates are forecast to increase by 2.99 percent before allowing for growth in our ratepayer base. After allowing for expected growth, our total rates are forecast to increase by 2.49 percent.

Average residential property rates are to increase by 2.35 percent. This means that the rates on the average residential property valued at $531,049 will increase to $2,083 (excluding GST) in 2014/15. An average rates increase of around 2.70 percent for commercial properties, including the impact of increases in metered water charges in 2014/15. These increases average to a 2.49 percent rates impact over all ratepayers, after growth in the ratepayer base have been taken into account.

Explaining your rates

Our total rates revenue is split between general rates and targeted rates.

General rates are used to fund activities where the Council is unable to clearly identify a specific group of ratepayers who receive the benefit of that activity, or where is it not possible or suitable for that group to be targeted to pay. General rates are split over two categories: the base sector general rate (residential) and the commercial sector general rate. These are both levied based on a rate per-dollar of capital value. The Council has a general rates differential in place that decides how the general rate is shared between the residents and businesses in each category.

In 2014/15, the commercial sector general rate per dollar of capital value is to remain at 2.8 times higher than the base sector general rate for a residential property of the same value.

Targeted rates are used to fund activities where the Council is able to clearly identify a specific group of ratepayers who receive the benefit of the activity, and where it is proper that this group be targeted to pay. The Council sets targeted rates to fund costs associated with the city’s water, sewerage and stormwater systems. Separate targeted rates are also set for our base (residential) sector, commercial sector, downtown commercial sector, Marsden Village, Tawa driveways and Miramar business improvement district (BID).

Your total rates bill will be made up of the general and targeted rates that apply to your property.

Property valuations and rates distribution

The Council sets the total amount of rates required to fund its spending based on the budgeted costs. For the majority of its rates the Council then uses property valuations as the basis to distribute the total rates requirement proportionally across all properties in Wellington by setting a rate per-dollar of capital value on your property.

The Council is on a 3-yearly valuation cycle and for the 2014/15 rating year the September 2012 valuations will be used to distribute the total rates requirement across all properties. The current property valuation will be used to distribute the total rates requirement for the 2014/15 and 2015/16 rating years.

It is important to note that your rates bill does not automatically change when your property value changes. Your rates bill will only be impacted by the change in your property’s capital value relative to the change the in capital value for the entire city. The final rates bill for an individual property will depend on:

the overall change in the Council’s rates requirement

any changes to the way we fund our activities (as set out in our Revenue and Financing Policy)

any changes in the rates differential or uniform rates applying to that property

the growth in the number of rateable properties in the city (due to construction of new houses, apartments or business premises)

the change in that property’s capital value compared to the average change in the capital value for the entire city

changes in the Council’s remissions policy.

Changes to rates or rating mechanisms

Water rates

The following increases to our targeted water rates to ensure the cost increases in the associated water activity are properly recovered:

Targeted Water Rating Mechanism
Current
(including GST)
2014/15
(including GST)

Water consumption charge for properties with a water meter
$2.067 per cubic metre
$2.151 per cubic metre

Annual fixed amount targeted rate for properties with a water meter
$123.63
$128.69

Annual fixed amount targeted rate for base (residential) sector properties without a water meter
$152.09
$158.36

Changes to our rates remission policy

The following changes and additions to our rates remission policy are to support earthquake strengthening of the city’s most at risk buildings.

The plan is to encourage owners to take positive action to strengthen the buildings they own and make our city safer by ensuring our rating regime does not unfairly penalise this important work. The changes are detailed as follows:

During strengthening works (for all buildings):

Remitting targeted rates on a building while it is being strengthened but is not able to be tenanted. This will be achieved by:

– Renaming the section 2.3 “Remission of Downtown Targeted Rates on Property Under Development Policy” to “Remission of Targeted Rates on Property Under Development or Earthquake Strengthening Policy”; and
– Amending the scope of the policy under section 2.3 to include remission of the commercial, industrial and business sector targeted rate and the base sector targeted rates, and extending the application of this remission to beyond the downtown area.

After strengthening works (for earthquake-prone buildings25 only):

For strengthened buildings, holding rates at pre-strengthening levels plus the annual average rates increases for three years following strengthening. This will be done by remitting rates payable on any valuation uplift that may reasonably arise from seismic strengthening works; and

For removed buildings, remitting 10% of the rates payable on the property for a period of 3 years.

This will be achieved by the addition of a new remission policy under section 2.6 “Remission of Rates for Buildings Removed from the Earthquake Prone Buildings List”.

Full details of the rates remission policy and changes can be found on page 106.

Development contributions policy

The change to the Development Contributions Policy is summarised as follows:

Reduce the development contribution charges (cost to developers) where the Local Government Act 2002 Amendment Bill (No 3) proposes changes under which councils would no longer be able to charge development contributions for community infrastructure, or charge commercial developments for reserves contributions.

Introduce a remission for significant ‘green’ building developments to recognise their strategic importance in the city. This will also reduce unnecessary costs to developers in doing business with the Council by providing an alternative to the self assessment process

To view the policy please refer to our website Wellington.govt.nz/your-council/plans-policies-and-bylaws/policies/development-contributions-policy

Funding our activities

When we’re deciding how to fund an activity, we consider a wide range of factors including:

who benefits (individuals, an identifiable part of the community)

can the beneficiary be easily identified

can the beneficiary be easily excluded from using the service for non-payment

intergenerational equity (ie do the benefits accrue to future generations as well as present ones)

the ‘polluter pays’ principle (ie people should pay for negative effects they cause)

fairness/equity of excluding people who cannot afford to pay

transparency/accountability of a particular funding method

overall impact on social, economic, cultural and environmental wellbeing.

Our Revenue and Financing Policy outlines how we propose to fund our activities. In 2014/15 we are not making any changes to the policy.

User charges

For 2014/15, User charges are increasing in only one area. Our fees are set in accordance with our Revenue and Financing Policy. The area where we are increasing our fees is:

Waste minimisation, disposal and recycling management (including trade waste)

The fee increase are outlined in the appendices of this plan.

Understanding the Council’s budgeted surplus

The Council is forecasting a net operating surplus of $26.3 million in 2014/15. The majority of this surplus arises from cash funding received for capital purposes (Crown grants for housing, development contributions, NZTA subsidies and bequests). This income flows through to the net operating surplus to be available to fund capital expenditure. Offsetting this are some depreciation costs on assets which we have resolved not to fund.

Capital expenditure

We’re continuing to invest in our city’s infrastructure while focusing on city resilience.

Capital expenditure pays for purchasing, building or developing the Council’s assets (eg pipes, roads, libraries, swimming pools). Our capital expenditure (excluding ‘carry-forwards’ and loans to other organisations) is forecast to be $152 million in 2014/15, $8 million less than in the same period forecast in the Long-term Plan.

The graph below shows where this capital expenditure will be spent by activity area in 2014/15.

Sources of capital funding

We fund capital expenditure from depreciation, borrowings, NZTA subsidies, grants and development contributions. For asset renewals, the main funding source is depreciation. For new assets and upgrades, the main funding sources are borrowings, subsidies and grants.

The graph below shows how our capital expenditure is being funded in 2014/15.

Borrowings

Total borrowings are forecast to be $404.2 million at the end of 2014/15. Our forecast asset base totals $7.2 billion in 2014/15.

As borrowings are mainly a consequence of capital expenditure, our financial strategy set a borrowings funded capital investment target of $45 million for each three-yearly Council triennium, and a borrowings funded capital investment limit of $60 million for each three yearly Council Triennium. This will ensure our debt levels remain sustainable and affordable for years to come. This is expected to be $46 million over the period 2012/13–2014/15.

Land sale

The Council only owns property assets that are necessary for public works or another purpose aligned to Council strategies. Property assets falling outside of this will be considered for sale or redeployed.

Reflected in the 2014/15 plan is $2 million worth of property asset disposals, with proceeds being used to reduce Council borrowings. Every specific property asset sale will be publicly consulted upon as per the standard Council process.

Variances from the Long-term Plan

Each year we review the underlying assumptions and costs that make up each activity. For each activity we consider the impact of a number of factors including:

changes in direct costs

updated forecasting assumptions (including changes to the forecast timing of projects)

the suitability of forecast inflation and CPI adjustments

changes affecting our opening position (e.g. updated borrowings forecasts).

This means the costs for each activity may differ from those we had originally forecast in the 2012–22 Long-term Plan.

Consolidated Activity Statements – Operating Expenditure

AP
2013/14
$000
LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000

OPERATING STATEMENT

Operating Expenditure
388,697
397,922
423,802
25,881

Weathertight Homes funding
4,996
6,662
6,662
(1)

Self-insurance
750
750
750
-

Waste Minimisation
-
-
124
124

Total operating expenditure and other outflows
394,443
405,334
431,338
26,004

Add back City housing ring-fenced surplus
(3,480)
(3,472)
(3,378)
94

Less expenditure not funded under section 100 of LGA:

NZTA Transport funded projects
(7,438)
(7,623)
(7,814)
(191)

General unfunded depreciation
(4,000)
(4,000)
(4,000)
-

Moa Point sewerage treatment plant
(3,015)
(3,624)
(3,226)
398

Discontinued Living Earth plant
(221)
(239)
(235)
4

Wellington Waterfront unfunded depreciation
-
-
(4,294)
(4,294)

Less expenditure funded by prior year surplus/borrowings:

Economic Development Fund
-
-
(3,554)
(3,554)

Wellington Waterfront interest
-
-
(559)
(559)

Taputeranga Island
-
-
(24)
(24)

Total operating expenditure to be funded
376,289
386,376
404,254
17,878

Funded by:

General rates
130,000
136,353
133,937
(2,416)

Targeted rates:

Sewerage rates (including trade waste)
35,370
36,677
36,257
(420)

Water rate
38,137
39,725
39,288
(437)

Stormwater rate
18,089
18,757
18,648
(109)

Base (residential) sector targeted rate
6,476
6,891
6,902
11

Commercial sector targeted rate
4,895
4,821
5,028
207

Downtown targeted rate
13,870
14,147
14,079
(68)

Tawa driveways targeted rate
33
33
33
-

Marsden Village targeted rate
14
14
14
-

Mirarmar Business Improvement District targeted rate
-
-
80
80

Total targeted rates
116,884
121,065
120,329
(736)

Total rates to fund operating expenditure and other outflows
246,884
257,418
254,266
(3,152)

User charges
78,159
79,610
93,410
13,800

Other income

Ground and commercial leases
32,912
31,710
36,574
4,864

Dividends
9,898
9,298
11,000
1,702

NZTA subsidies
5,341
5,085
5,561
476

Housing grants
995
1,082
1,296
214

Petrol tax
1,120
1,164
1,100
(64)

Interest from investments
-
-
39
39

Miscellaneous
980
1,009
1,008
(1)

Total operating funding
376,289
386,376
404,254
17,878

Consolidated Activity Statements – Capital Expenditure
and Loans to Other Organisations

AP
2013/14
$000
LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000

Renewal capital expenditure
84,094
98,610
79,480
(19,130)

Upgrade capital expenditure
55,625
61,733
72,523
10,790

Capital expenditure carried forward from 2012/13
28,000
-
-
-

Capital expenditure carried forward from 2013/14
(10,000)
-
32,500
32,500

Capital expenditure carried forward from 2014/15
-
-
(20,000)
(20,000)

Total capital expenditure to be funded
157,719
160,343
164,503
4,160

Loans to other organisations
-
-
-
-

Total capital expenditure and loans to be funded
157,719
160,343
164,503
4,160

FUNDED BY:

Depreciation
72,525
90,462
71,666
(18,796)

Use of housing surplus
-
26
-
(26)

NZTA transport subsidies
10,264
10,884
10,590
(294)

Housing grants
30,739
27,705
32,036
4,331

Development contributions
5,000
5,000
2,000
(3,001)

Bequests & grants
1,492
1,157
749
(408)

Borrowings
37,699
25,109
47,462
22,354

Total funding for capital expenditure and loans to other organisations
157,719
160,343
164,503
4,160

Consolidated Activity Statements – Borrowing

AP
2013/14
$000
LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000

Opening Gross Borrowings - total
345,668
401,996
355,762
(46,235)

New borrowings to fund capital expenditure:

- Housing capital expenditure
-
-
-
-

- Other capital expenditure
20,893
25,109
34,964
9,855

- Carry forward capital expenditure
18,000
-
12,500
12,500

Total
38,893
25,109
47,464
22,355

Other movements to borrowings:

Asset proceeds
(15,075)
(15,075)
(4,050)
11,025

Ring-fenced housing surpluses - opex
3,479
3,472
3,378
(94)

Ring-fenced housing surpluses - capex
(9,954)
(5,471)
(6,844)
(1,373)

Self insurance fund contribution
(750)
(750)
-
750

Weathertight homes funding
8,772
8,593
8,430
(163)

Economic Development Fund
-
-
3,554
3,554

Wellington Waterfront interest
-
-
559
559

Depreciation reserve movement
3,851
10,772
(4,090)
(14,862)

Other movements
751
284
-
(284)

Closing Gross Borrowing
375,635
428,931
404,163
(24,768)

Overview By Activity Areas

The below table summaries the funding activity statements that are required by the Local Government Act 2002 (Act).

This shows the operation and capital funding of each activity and compares to the same period in the 2012–22 Long-term Plan.

Due to legislative requirements these operational funded expenditure do not include funded and unfunded depreciation and borrowing funded expenditure. For full reconciliation please see reconciliation on the following page.

Activity Areas
Activity
2014/15
OPEX
per LTP
$000
2014/15
OPEX
AP
$000
Variance
OPEX
to LTP
$000
2014/15
CAPEX
per LTP
$000
2014/15
CAPEX
AP
$000
Variance
CAPEX
to LTP
$000

1.1
Governance
Governance, information and engagement
15,801
14,718
(1,083)
55
61
6

1.2

Maori and mana whenua partnerships
252
223
(29)
-
2
2

16,053
14,941
(1,112)
55
63
8

2.1
Environment
Gardens, beaches and green open spaces
32,058
31,221
(837)
4,338
4,978
640

2.2

Waste reduction and energy conservation
13,036
12,771
(265)
818
626
(192)

2.3

Water
25,558
25,173
(385)
19,378
17,338
(2,040)

2.4

Wastewater
28,395
28,188
(207)
9,819
9,468
(351)

2.5

Stormwater
11,802
11,780
(22)
7,121
7,554
433

2.6

Conservation attractions
4,708
4,789
81
1,664
1,853
189

115,557
113,922
(1,635)
43,138
41,817
(1,321)

3.1
Economic Development
City promotions and business support
17,437
36,190
18,753
2,364
(1,936)
(4,300)

17,437
36,190
18,753
2,364
(1,936)
(4,300)

4.1
Cultural Wellbeing
Arts and culture activities
18,345
17,450
(895)
830
851
21

18,345
17,450
(895)
830
851
21

5.1
Social and Recreation
Recreation promotion and support
31,556
30,736
(820)
9,489
7,693
(1,796)

5.2

Community support
40,301
39,011
(1,290)
37,258
44,508
7,250

5.3

Public health and safety
12,606
12,469
(137)
881
718
(163)

84,463
82,216
(2,247)
47,628
52,919
5,291

6.1
Urban Development
Urban planning, heritage and public spaces development
6,947
11,878
4,931
15,714
2,931
(12,783)

6.2

Building and development control
19,715
20,097
382
14,478
17,776
3,298

26,662
31,975
5,313
30,192
20,707
(9,485)

7.1
Transport
Transport
24,768
23,099
(1,669)
33,001
33,858
857

7.2

Parking
12,674
11,461
(1,213)
(21)
505
526

37,442
34,560
(2,882)
32,980
34,363
1,383

10.1
Corporate Support

(19,178)
(9,618)
9,560
17,338
18,221
883

-

-

Whole of Council

296,781
321,636
24,855
174,525
167,005
(7,520)

Reconciliation of operational funding

2014/15
$000

Total applications of operating funding (from Whole of Council FIS)
321,636

Add:

Depreciation
102,165

Total expense (from Prospective Statement of Comprehensive Financial Performance)
423,801

Add Rates funded repayment of borrowings
7,535

Total operating expenditure & other outflows (from Prospective Statement of Comprehensive Financial Performance)
431,336

City Housing ring-fenced surplus/(deficit)
(3,378)

Unfunded depreciation
(19,569)

Borrowings funded operational expenditure
(4,137)

Total operating expenditure & other outflows to be funded (from Opex Consolidated Activity Statement)
404,253

22 From 2014/15 onwards the target is based on CPI.

23 The limit on rates increases are set as an indexation based on LGCI. The base year is the 2011/12 rates income.

24 The limits on rates is based on the increase set by the LGCI annually.

25 Buildings assessed as 33% or less of the National Building Standard (NBS) and on the Wellington City Council Earthquake Prone Buildings List.

Funding Impact and Financial Statements

Funding Impact Statement — whole of council

Funding Impact Statement — governance, information and engagement

Funding Impact Statement — Māori and Mana Whenua Partnerships

Funding Impact Statement — gardens, beaches and green open spaces

Funding Impact Statement — waste reduction and energy conservation

Funding Impact Statement — water

Funding Impact Statement — wastewater

Funding Impact Statement — stormwater

Funding Impact Statement — conservation attractions

Funding Impact Statement — city promotions and business support

Funding Impact Statement — arts and culture activities

Funding Impact Statement — recreation promotion and support

Funding Impact Statement — community support

Funding Impact Statement — public health and safety

Funding Impact Statement — urban planning, heritage and public spaces development

Funding Impact Statement — building and development control

Funding Impact Statement — transport

Funding Impact Statement — parking

Funding Impact Statement (Excluding GST)

Funding Impact Statement — rating mechanisms

Rates

General Rates

Differential Rating Categories

Non-Rateable Land

Targeted Rates

Indicative Rates*

Rates Remission and Postponement Policies

Prospective Statement of Comprehensive Financial Performance

Prospective Statement of Financial Position

Prospective Statement of Changes in net assets/Equity

Prospective Statement of Cash Flows

Prospective Statement of Changes in Restricted Funds

This section contains:

the funding impact statement

prospective financial statements

significant accounting policies

Funding Impact Statement
— whole of council

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
131,000
136,353
134,936
(1,417)

Targeted rates (other than a targeted rate for water supply)
103,552
108,242
106,451
(1,791)

Subsidies and grants for operating purposes
7,250
6,873
7,714
841

Fees, charges, and targeted rates for water supply*
113,761
112,956
134,566
21,610

Interest and dividends from investments
9,908
9,308
11,044
1,736
1

Local authorities fuel tax, fines, infringement fees, and other receipts
10,817
12,645
9,541
(3,104)

Total operating funding (A)
376,288
386,377
404,252
17,875

Applications of operating funding

Payments to staff and suppliers
245,000
241,197
269,637
28,440

Finance costs
21,965
25,096
23,041
(2,055)
2

Internal charges and overheads applied
(0)
-
-
-

Other operating funding applications
29,623
30,488
28,958
(1,530)

Total applications of operating funding (B)
296,588
296,781
321,636
24,855

Surplus (deficit) of operating funding (A - B)
79,700
89,596
82,616
(6,980)

Sources of capital funding

Subsidies and grants for capital expenditure
42,495
39,746
43,375
3,629

Development and financial contributions
5,000
5,000
2,000
(3,000)
3

Increase (decrease) in debt
20,893
25,109
34,964
9,855

Gross proceeds from sales of assets
15,075
15,075
4,050
(11,025)
4

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
83,463
84,930
84,389
(541)

Applications of capital funding

Capital expenditure

- to meet additional demand
1,634
3,957
2,558
(1,399)

- to improve the level of service
53,991
57,776
69,965
12,189

- to replace existing assets
84,094
98,610
79,480
(19,130)

Increase (decrease) in reserves
23,444
14,183
15,002
819

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
163,163
174,526
167,005
(7,521)

Surplus (deficit) of capital funding (C - D)
(79,700)
(89,596)
(82,616)
6,980

Funding balance ((A - B) + (C - D))
-
-
-
-

Expenses for this activity grouping include the following depreciation/amortisation charge
92,109
101,138
102,165
1,027

*Only the Water activity includes metered water rates

Notes:

1. Our expectation of Wellington International Airport Limited dividends has been increased to 2012/13 actual levels.
2. Forecast interest rates are lower than was forecast in the 2012–22 Long-term Plan for the same period, along with lower than expected debt levels.  
3. The expected development contributions income in 2014/15 has been reduced to reflect actual current income and changes to the Development Contributions Policy. 
4. Changes in the timings of Wellington Waterfront Limited proceeds offset by the inclusion of expected land sales included in the 2014/15 Annual Plan.

Funding Impact Statement
— governance, information and engagement

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
16,356
15,449
14,214
(1,235)

Targeted rates (other than a targeted rate for water supply)
-
-
-
-

Subsidies and grants for operating purposes
-
-
-
-

Fees, charges, and targeted rates for water supply*
733
407
565
158

Interest and dividends from investments
-
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-
-

Total operating funding (A)
17,089
15,856
14,779
(1,077)

Applications of operating funding

Payments to staff and suppliers
8,579
8,217
7,820
(397)
1

Finance costs
14
1
15
14

Internal charges and overheads applied
8,156
7,573
6,570
(1,003)
2

Other operating funding applications
267
10
313
303
3

Total applications of operating funding (B)
17,016
15,801
14,718
(1,083)

Surplus (deficit) of operating funding (A - B)
73
55
61
6

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-
-

Development and financial contributions
-
-
-
-

Increase (decrease) in debt
-
-
-
-

Gross proceeds from sales of assets
-
-
-
-

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
-
-
-
-

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-
-

- to improve the level of service
-
-
-
-

- to replace existing assets
110
-
-
-

Increase (decrease) in reserves
(37)
55
61
6

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
73
55
61
6

Surplus (deficit) of capital funding (C - D)
(73)
(55)
(61)
(6)

Funding balance ((A - B) + (C - D))
-
-
-
-

Expenses for this activity grouping include the following depreciation/amortisation charge
73
55
61
6

*Only the Water activity includes metered water rates

Notes:

1. Differences in inflationary assumptions between the 2012–22 Long-term Plan and 2014/15 Annual Plan and reductions in costs associated with the operations of City Archives.
2. There has been a concerted effort to reduce back office costs that has resulted in a decrease to internal charges and overheads applied. This reduction has been spread across all activity areas.
3. The second year or the planned two year funding for the Smart Energy Capital Iniative included as part of the 2013/14 Annual Plan has been topped up with additional funding in 2014/15 by way of Mayor Wade-Brown’s decision to forgo her Wellington International Airport Limited directors fees and redirect them into the Initiative.

Funding Impact Statement
— Māori and Mana Whenua Partnerships

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000

Sources of operating funding

General rates, uniform annual general charges, rates penalties
225
252
225
(27)

Targeted rates (other than a targeted rate for water supply)
-
-
-
-

Subsidies and grants for operating purposes
-
-
-
-

Fees, charges, and targeted rates for water supply*
-
-
-
-

Interest and dividends from investments
-
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-
-

Total operating funding (A)
225
252
225
(27)

Applications of operating funding

Payments to staff and suppliers
214
243
214
(29)

Finance costs
1
-
1
1

Internal charges and overheads applied
8
9
8
(1)

Other operating funding applications
-
-
-
-

Total applications of operating funding (B)
223
252
223
(29)

Surplus (deficit) of operating funding (A - B)
2
-
2
2

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-
-

Development and financial contributions
-
-
-
-

Increase (decrease) in debt
-
-
-
-

Gross proceeds from sales of assets
-
-
-
-

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
-
-
-
-

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-
-

- to improve the level of service
-
-
-
-

- to replace existing assets
-
-
-
-

Increase (decrease) in reserves
2
-
2
2

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
2
-
2
2

Surplus (deficit) of capital funding (C - D)
(2)
-
(2)
(2)

Funding balance ((A - B) + (C - D))
-
-
-
-

Expenses for this activity grouping include the following depreciation/amortisation charge
2
-
2
2

*Only the Water activity includes metered water rates

Funding Impact Statement
— gardens, beaches and green open spaces

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
26,540
28,560
27,267
(1,293)

Targeted rates (other than a targeted rate for water supply)
436
427
632
205

Subsidies and grants for operating purposes
637
583
671
88

Fees, charges, and targeted rates for water supply *
1,118
1,261
1,314
53

Interest and dividends from investments
4,910
5,457
5,101
(356)

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-
-

Total operating funding (A)
33,641
36,288
34,985
(1,303)

Applications of operating funding

Payments to staff and suppliers
16,980
17,269
17,767
498
1

Finance costs
1,674
2,200
1,834
(366)

Internal charges and overheads applied
11,233
12,489
11,520
(969)

Other operating funding applications
80
100
100
-

Total applications of operating funding (B)
29,967
32,058
31,221
(837)

Surplus (deficit) of operating funding (A - B)
3,674
4,230
3,764
(466)

Sources of capital funding

Subsidies and grants for capital expenditure
1,080
600
620
20

Development and financial contributions
1,099
1,099
183
(916)

Increase (decrease) in debt
(2,071)
(1,591)
411
2,002

Gross proceeds from sales of assets
-
-
-
-

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
108
108
1,214
1,106

Applications of capital funding

Capital expenditure

- to meet additional demand
53
53
34
(19)

- to improve the level of service
55
55
1,180
1,125
2

- to replace existing assets
2,545
2,498
1,791
(707)
2

Increase (decrease) in reserves
1,129
1,732
1,973
241

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
3,782
4,338
4,978
640

Surplus (deficit) of capital funding (C - D)
(3,674)
(4,230)
(3,764)
466

Funding balance ((A - B) + (C - D))
-
-
-
0

Expenses for this activity grouping include the following depreciation/amortisation charge
3,952
4,456
4,042
(414)

*Only the Water activity includes metered water rates

Notes:

1. Council agreed to provide $350k to the Lyall Bay Surf Club towards the construction of new clubrooms. This funding was agreed for 2013/14 in the 2012–22 Long-term Plan however it has been deferred till 2014/15 due to project delays. Funding for maintenance of Memorial Park (Buckle Street) included in the 2014/15 Annual Plan.
2. Council approved additional capital expenditure to implement initiatives identified in the Council’s open space and recreation framework, “Our Capital Spaces”. Additional expenditure has also been included for a new cycle and walkway in Kilbirnie and the repair of coastal areas damaged by the major storms in 2013. Expenditure for the proposed Children’s Garden, funded by the Charles Plimmer Bequest, has been reclassified more accurately as upgrade funding.

Funding Impact Statement
— waste reduction and energy conservation

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
451
2,108
404
(1,704)

Targeted rates (other than a targeted rate for water supply)
-
-
-
-

Subsidies and grants for operating purposes
-
-
-
-

Fees, charges, and targeted rates for water supply*
12,393
11,429
12,926
1,497
1

Interest and dividends from investments
-
310
-
(310)

Local authorities fuel tax, fines, infringement fees, and other receipts
-
7
-
(7)

Total operating funding (A)
12,844
13,854
13,330
(524)

Applications of operating funding

Payments to staff and suppliers
11,112
12,180
11,873
(307)
2

Finance costs
1,051
929
1,005
76

Internal charges and overheads applied
111
(73)
(112)
(39)

Other operating funding applications
5
-
5
5

Total applications of operating funding (B)
12,279
13,036
12,771
(265)

Surplus (deficit) of operating funding (A - B)
565
818
559
(259)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-
-

Development and financial contributions
-
-
-
-

Increase (decrease) in debt
91
-
67
67

Gross proceeds from sales of assets
-
-
-
-

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
91
-
67
67

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-
-

- to improve the level of service
91
-
67
67

- to replace existing assets
963
7,315
709
(6,606)
3

Increase (decrease) in reserves
(398)
(6,497)
(150)
6,347

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
656
818
626
(192)

Surplus (deficit) of capital funding (C - D)
(565)
(818)
(559)
259

Funding balance ((A - B) + (C - D))
-
-
-
-

Expenses for this activity grouping include the following depreciation/amortisation charge
565
818
435
(383)

*Only the Water activity includes metered water rates

Notes:

1. The required usage of the Landfill Levy Reserve, which is used to help offset operating costs, was increased after its utilisation was re-assessed.
2. Contract negotiations for several waste and recycling services has delivered lower operating costs than anticipated in the 2012–22 Long-term Plan.
3. An extended resource consent process has resulted in a delay to the Southern Landfill Stage 4 extension. The capital programme was re-aligned to project expectations as part of the 2013/14 Annual Plan.

Funding Impact Statement
— water

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
-
-
-
-

Targeted rates (other than a targeted rate for water supply)
24,804
26,902
25,408
(1,494)

Subsidies and grants for operating purposes
-
-
-
-

Fees, charges, and targeted rates for water supply*
13,366
12,856
13,912
1,056
1

Interest and dividends from investments
-
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-
-

Total operating funding (A)
38,170
39,758
39,320
(438)

Applications of operating funding

Payments to staff and suppliers
21,373
21,298
21,547
249
2

Finance costs
1,912
2,436
2,104
(332)

Internal charges and overheads applied
1,704
1,824
1,522
(302)

Other operating funding applications
-
-
-
-

Total applications of operating funding (B)
24,989
25,558
25,173
(385)

Surplus (deficit) of operating funding (A - B)
13,181
14,200
14,147
(53)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-
-

Development and financial contributions
1,231
1,231
671
(560)

Increase (decrease) in debt
988
3,947
2,520
(1,427)

Gross proceeds from sales of assets
-
-
-
-

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
2,219
5,178
3,191
(1,987)

Applications of capital funding

Capital expenditure

- to meet additional demand
274
399
358
(41)

- to improve the level of service
1,945
4,779
2,833
(1,946)
3

- to replace existing assets
9,962
11,000
9,104
(1,896)
3

Increase (decrease) in reserves
3,219
3,200
5,043
1,843

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
15,400
19,378
17,338
(2,040)

Surplus (deficit) of capital funding (C - D)
(13,181)
(14,200)
(14,147)
53

Funding balance ((A - B) + (C - D))
-
-
-
-

Expenses for this activity grouping include the following depreciation/amortisation charge
13,744
14,808
14,739
(69)

*Only the Water activity includes metered water rates

Notes:

1. Water rates revenue was increased by 4 percent in 2013/14 and again by 4 percent in 2014/15. In the 2012–22 Long-term Plan water rates were held at 2012/13 levels for the duration of the Plan.
2. Reactive maintenance budgets were increased as part of the 2013/14 Annual Plan. This increase has been partially offset by lower bulk water costs than budgeted in the 2012–22 Long-term Plan.
3. The Prince of Wales Reservoir has been deferred to the 2015–25 Long-term Plan, while alternatives are being assessed.

Funding Impact Statement
— wastewater

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
-
-
-
-

Targeted rates (other than a targeted rate for water supply)
35,370
36,676
36,257
(419)

Subsidies and grants for operating purposes
-
-
-
-

Fees, charges, and targeted rates for water supply*
1,210
1,328
1,227
(101)

Interest and dividends from investments
-
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-
-

Total operating funding (A)
36,580
38,004
37,484
(520)

Applications of operating funding

Payments to staff and suppliers
20,715
19,017
21,070
2,053
1

Finance costs
3,402
3,988
3,577
(411)

Internal charges and overheads applied
3,821
5,390
3,541
(1,849)

Other operating funding applications
-
-
-
-

Total applications of operating funding (B)
27,938
28,395
28,188
(207)

Surplus (deficit) of operating funding (A - B)
8,642
9,609
9,296
(313)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-
-

Development and financial contributions
1,007
1,007
549
(458)

Increase (decrease) in debt
(822)
(797)
(377)
420

Gross proceeds from sales of assets
-
-
-
-

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
185
210
172
(38)

Applications of capital funding

Capital expenditure

- to meet additional demand
185
210
172
(38)

- to improve the level of service
-
-
-
-

- to replace existing assets
7,226
8,185
7,573
(612)
2

Increase (decrease) in reserves
1,416
1,424
1,723
299

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
8,827
9,819
9,468
(351)

Surplus (deficit) of capital funding (C - D)
(8,642)
(9,609)
(9,296)
313

Funding balance ((A - B) + (C - D))
-
-
-
-

Expenses for this activity grouping include the following depreciation/amortisation charge
12,538
14,156
13,416
(740)

*Only the Water activity includes metered water rates

Notes:

1. Budgets for network and pump station maintenance were increased as part of the 2013/14 Annual Plan. Treatment plant operational costs are higher than anticipated in the 2012–22 Long-term Plan primarily due to movements in electricity costs.
2. The variance is due in large part to the availability and use of improved asset information and asset management systems.

Funding Impact Statement
— stormwater

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
-
-
-
-

Targeted rates (other than a targeted rate for water supply)
18,089
18,757
18,648
(109)

Subsidies and grants for operating purposes
40
42
120
78

Fees, charges, and targeted rates for water supply*
9
9
9
-

Interest and dividends from investments
-
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-
-

Total operating funding (A)
18,138
18,808
18,777
(31)

Applications of operating funding

Payments to staff and suppliers
7,486
5,223
7,432
2,209
1

Finance costs
2,612
3,446
2,875
(571)

Internal charges and overheads applied
1,600
3,133
1,473
(1,660)

Other operating funding applications
-
-
-
-

Total applications of operating funding (B)
11,698
11,802
11,780
(22)

Surplus (deficit) of operating funding (A - B)
6,440
7,006
6,997
(9)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-
-

Development and financial contributions
107
107
58
(49)

Increase (decrease) in debt
(7)
8
499
491

Gross proceeds from sales of assets
-
-
-
-

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
100
115
557
442

Applications of capital funding

Capital expenditure

- to meet additional demand
100
115
106
(9)

- to improve the level of service
-
-
451
451
2

- to replace existing assets
3,912
4,498
3,697
(801)
2

Increase (decrease) in reserves
2,528
2,508
3,300
792

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
6,540
7,121
7,554
433

Surplus (deficit) of capital funding (C - D)
(6,440)
(7,006)
(6,997)
9

Funding balance ((A - B) + (C - D))
-
-
-
-

Expenses for this activity grouping include the following depreciation/amortisation charge
6,440
7,006
6,997
(9)

*Only the Water activity includes metered water rates

Notes:

1. Budgets for network and pump station maintenance were increased as part of the 2013/14 Annual Plan. Rates costs have also increased as a result of the 2012/13 rates valuation process.
2. A review of Stormwater renewals has resulted in a reclassification of capital expenditure splits between level of service and replacement of existing assets. Lower inflation on capital related costs has been budgeted than in the 2012–22 Long-term Plan. Part of the variance is due to the enhancement of asset management planning systems and improved asset information.

Funding Impact Statement
— conservation attractions

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000

Sources of operating funding

General rates, uniform annual general charges, rates penalties
5,779
5,839
6,126
287

Targeted rates (other than a targeted rate for water supply)
-
-
-
-

Subsidies and grants for operating purposes
-
-
-
-

Fees, charges, and targeted rates for water supply*
-
-
-
-

Interest and dividends from investments
-
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-
-

Total operating funding (A)
5,779
5,839
6,126
287

Applications of operating funding

Payments to staff and suppliers
127
145
138
(7)

Finance costs
708
800
755
(45)

Internal charges and overheads applied
268
264
264
0

Other operating funding applications
3,590
3,499
3,632
133

Total applications of operating funding (B)
4,693
4,708
4,789
81

Surplus (deficit) of operating funding (A - B)
1,086
1,131
1,337
206

Sources of capital funding

Subsidies and grants for capital expenditure
412
133
129
(4)

Development and financial contributions
-
-
-
-

Increase (decrease) in debt
1,239
400
387
(13)

Gross proceeds from sales of assets
-
-
-
-

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
1,651
533
516
(17)

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-
-

- to improve the level of service
1,651
533
516
(17)

- to replace existing assets
241
279
278
(1)

Increase (decrease) in reserves
845
852
1,059
207

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
2,737
1,664
1,853
189

Surplus (deficit) of capital funding (C - D)
(1,086)
(1,131)
(1,337)
(206)

Funding balance ((A - B) + (C - D))
-
-
-
-

Expenses for this activity grouping include the following depreciation/amortisation charge
1,086
1,131
1,337
206

*Only the Water activity includes metered water rates

Funding Impact Statement
— city promotions and business support

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
4,311
4,997
5,207
210

Targeted rates (other than a targeted rate for water supply)
14,583
14,804
15,012
208

Subsidies and grants for operating purposes
-
-
-
-

Fees, charges, and targeted rates for water supply*
186
-
14,035
14,035

Interest and dividends from investments
50
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-
-

Total operating funding (A)
19,130
19,801
34,254
14,453

Applications of operating funding

Payments to staff and suppliers
7,160
5,639
26,079
20,440
1

Finance costs
682
378
710
332

Internal charges and overheads applied
2,192
2,260
1,848
(412)

Other operating funding applications
7,523
9,160
7,553
(1,607)
2

Total applications of operating funding (B)
17,557
17,437
36,190
18,753

Surplus (deficit) of operating funding (A - B)
1,573
2,364
(1,936)
(4,300)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-
-

Development and financial contributions
-
-
-
-

Increase (decrease) in debt
-
-
-
-

Gross proceeds from sales of assets
-
-
-
-

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
-
-
-
-

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-
-

- to improve the level of service
-
-
-
-

- to replace existing assets
765
1,186
1,341
155

Increase (decrease) in reserves
808
1,178
(3,277)
(4,455)

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
1,573
2,364
(1,936)
(4,300)

Surplus (deficit) of capital funding (C - D)
(1,573)
(2,364)
1,936
4,300

Funding balance ((A - B) + (C - D))
-
-
-
-

Expenses for this activity grouping include the following depreciation/amortisation charge
1,573
2,364
1,618
(746)

*Only the Water activity includes metered water rates

Notes:

1. Funding has been included for the Economic Development Fund established as part of the 2013/14 Annual Plan, a refocusing of resources towards economic development and funding for the Under 20 FIFA World Cup has been brought forward from 2015/16 as the event will be held earlier than the original start date. Funding for the Regional Amenities Fund has been reallocated to the Economic Development Fund. Costs have been reviewed and some reclassified from ‘Other operating funding applications’ to ‘Payments to staff and suppliers’.
2. Reductions in funding for Positively Wellington Tourism were approved in the 2013/14 Annual Plan. Further reductions have been made and some costs have also been reviewed and reclassified from ‘Other operating funding applications’ to ‘Payments to staff and suppliers’.

Funding Impact Statement
— arts and culture activities

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
11,132
12,778
11,947
(831)

Targeted rates (other than a targeted rate for water supply)
5,216
5,095
5,243
148

Subsidies and grants for operating purposes
402
443
430
(13)

Fees, charges, and targeted rates for water supply*
611
664
583
(81)

Interest and dividends from investments
341
170
72
(98)

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-
-

Total operating funding (A)
17,702
19,150
18,275
(875)

Applications of operating funding

Payments to staff and suppliers
3,219
3,359
3,510
151

Finance costs
215
259
211
(48)

Internal charges and overheads applied
935
1,588
1,049
(539)

Other operating funding applications
12,484
13,139
12,680
(459)
1

Total applications of operating funding (B)
16,853
18,345
17,450
(895)

Surplus (deficit) of operating funding (A - B)
849
805
825
20

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-
-

Development and financial contributions
-
-
-
-

Increase (decrease) in debt
25
25
26
1

Gross proceeds from sales of assets
-
-
-
-

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
25
25
26
1

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-
-

- to improve the level of service
25
25
26
1

- to replace existing assets
1
2
1
(1)

Increase (decrease) in reserves
848
803
824
21

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
874
830
851
21

Surplus (deficit) of capital funding (C - D)
(849)
(805)
(825)
(20)

Funding balance ((A - B) + (C - D))
-
-
-
-

Expenses for this activity grouping include the following depreciation/amortisation charge
849
805
825
20

*Only the Water activity includes metered water rates

Notes:

1. Increased grant funding for the Wellington Museums Trust and an increase in funding for Wellington Orchestra that was approved as part of the 2013/14 Annual Plan. Funding for the Regional Amenities Fund reallocated to the Economic Development Fund.

Funding Impact Statement
— recreation promotion and support

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
24,661
24,478
24,001
(477)

Targeted rates (other than a targeted rate for water supply)
776
883
1,039
156

Subsidies and grants for operating purposes
396
120
398
278

Fees, charges, and targeted rates for water supply*
11,353
12,267
11,483
(784)
1

Interest and dividends from investments
1,005
1,074
1,051
(23)

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-
-

Total operating funding (A)
38,191
38,822
37,972
(850)

Applications of operating funding

Payments to staff and suppliers
17,116
17,418
16,950
(468)
2

Finance costs
3,902
3,966
3,725
(241)

Internal charges and overheads applied
9,770
9,772
9,411
(361)

Other operating funding applications
400
400
650
250
3

Total applications of operating funding (B)
31,188
31,556
30,736
(820)

Surplus (deficit) of operating funding (A - B)
7,003
7,266
7,236
(30)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-
-

Development and financial contributions
466
466
-
(466)

Increase (decrease) in debt
1,469
1,757
457
(1,300)

Gross proceeds from sales of assets
-
-
-
-

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
1,935
2,223
457
(1,766)

Applications of capital funding

Capital expenditure

- to meet additional demand
871
908
123
(785)
4

- to improve the level of service
1,064
849
334
(515)
4

- to replace existing assets
2,902
2,851
2,564
(287)
5

Increase (decrease) in reserves
4,101
4,881
4,672
(209)

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
8,938
9,489
7,693
(1,796)

Surplus (deficit) of capital funding (C - D)
(7,003)
(7,266)
(7,236)
30

Funding balance ((A - B) + (C - D))
-
-
-
0

Expenses for this activity grouping include the following depreciation/amortisation charge
7,091
7,355
7,324
(31)

*Only the Water activity includes metered water rates

Notes:

1. Reduction in revenue forecast from swimming pools. This reflects current trends and a change in the timing of the closure for the Keith Spry Pool upgrade.
2. Reductions in swimming pool operating expenditure due to a change in the timing of the closure for the Keith Spry Pool upgrade.
3. Increased grant funding for the Basin Reserve Trust for increased ground maintenance costs.
4. The new artificial sportsfield planned for the Tawa/Grenada area has been deferred.
5. Some sportsfields capital expenditure has been reclassified more accurately as upgrade funding.

Funding Impact Statement
— community support

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
22,293
22,978
21,755
(1,223)

Targeted rates (other than a targeted rate for water supply)
4,245
4,665
4,179
(486)

Subsidies and grants for operating purposes
1,023
1,082
1,296
214

Fees, charges, and targeted rates for water supply*
20,635
18,937
22,057
3,120
1

Interest and dividends from investments
1,363
1,289
1,287
(2)

Local authorities fuel tax, fines, infringement fees, and other receipts
851
904
659
(245)

Total operating funding (A)
50,410
49,855
51,233
1,378

Applications of operating funding

Payments to staff and suppliers
24,926
26,315
26,166
(149)

Finance costs
(602)
(1,704)
(725)
979

Internal charges and overheads applied
12,416
12,528
10,410
(2,118)

Other operating funding applications
3,574
3,162
3,160
(2)

Total applications of operating funding (B)
40,314
40,301
39,011
(1,290)

Surplus (deficit) of operating funding (A - B)
10,096
9,554
12,222
2,668

Sources of capital funding

Subsidies and grants for capital expenditure
30,739
27,705
32,036
4,331

Development and financial contributions
88
88
-
(88)

Increase (decrease) in debt
(88)
(89)
250
339

Gross proceeds from sales of assets
-
-
-
-

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
30,739
27,704
32,286
4,582

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-
-

- to improve the level of service
25,694
27,730
32,284
4,554
2

- to replace existing assets
7,031
7,909
6,915
(994)
3

Increase (decrease) in reserves
8,110
1,619
5,309
3,690

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
40,835
37,258
44,508
7,250

Surplus (deficit) of capital funding (C - D)
(10,096)
(9,554)
(12,222)
(2,668)

Funding balance ((A - B) + (C - D))
-
-
-
-

Expenses for this activity grouping include the following depreciation/amortisation charge
13,707
13,174
15,730
2,556

*Only the Water activity includes metered water rates

Notes:

1. Increased forecast revenue from housing operations.
2. The timing of the Housing Upgrade Project has been revised. Johnsonville library funding brought forward from 2015/16
3. The renewal of the Library operating system has been deferred by one year. This has been partly offset by an increase in the cost of renewing Council Housing assets. Part of the variance is due to the enhancement of asset management planning systems and improved asset information.

Funding Impact Statement
— public health and safety

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
7,713
9,023
8,266
(757)

Targeted rates (other than a targeted rate for water supply)
-
-
-
-

Subsidies and grants for operating purposes
10
11
25
14

Fees, charges, and targeted rates for water supply*
3,436
3,487
3,962
475
1

Interest and dividends from investments
668
698
676
(22)

Local authorities fuel tax, fines, infringement fees, and other receipts
48
61
52
(9)

Total operating funding (A)
11,875
13,280
12,981
(299)

Applications of operating funding

Payments to staff and suppliers
7,860
7,877
8,284
407
2

Finance costs
70
94
76
(18)

Internal charges and overheads applied
3,292
4,609
3,980
(629)

Other operating funding applications
29
26
129
103

Total applications of operating funding (B)
11,251
12,606
12,469
(137)

Surplus (deficit) of operating funding (A - B)
624
674
512
(162)

Sources of capital funding

Subsidies and grants for capital expenditure
-
424
-
(424)

Development and financial contributions
15
15
-
(15)

Increase (decrease) in debt
95
(232)
206
438

Gross proceeds from sales of assets
-
-
-
-

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
110
207
206
(1)

Applications of capital funding

Capital expenditure

- to meet additional demand
24
25
-
(25)

- to improve the level of service
86
182
206
24

- to replace existing assets
606
728
1,104
376
3

Increase (decrease) in reserves
18
(54)
(592)
(538)

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
734
881
718
(163)

Surplus (deficit) of capital funding (C - D)
(624)
(674)
(512)
162

Funding balance ((A - B) + (C - D))
-
-
-
-

Expenses for this activity grouping include the following depreciation/amortisation charge
639
680
527
(153)

*Only the Water activity includes metered water rates

Notes:

1. Increased income from liquor licensing due to fee increases and extra fees for the new District Licensing Committees following legislative changes in the Sale and Supply of Alcohol Act 2012 (Act).
2. Liquor licensing operating costs have increased due to the establishment of District Licensing Committee following legislative changes in the Sale and Supply of Alcohol Act 2012 (Act).
3. Council agreed to provide public toilets in the planned new Lyall Bay Surf Club building. This funding was agreed for 2013/14 in the 2012–22 Long-term Plan however it has been deferred till 2014/15 due to project delays.

Funding Impact Statement
— urban planning, heritage and public spaces development

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
7,254
6,927
7,098
171

Targeted rates (other than a targeted rate for water supply)
-
-
-
-

Subsidies and grants for operating purposes
-
-
-
-

Fees, charges, and targeted rates for water supply*
20
21
3,922
3,901

Interest and dividends from investments
-
-
310
310

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-
-

Total operating funding (A)
7,274
6,948
11,330
4,382

Applications of operating funding

Payments to staff and suppliers
2,029
2,005
7,775
5,770
1

Finance costs
1,370
744
573
(171)

Internal charges and overheads applied
2,337
2,743
3,040
297

Other operating funding applications
1,526
1,455
490
(965)
1

Total applications of operating funding (B)
7,262
6,947
11,878
4,931

Surplus (deficit) of operating funding (A - B)
12
1
(548)
(549)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-
-

Development and financial contributions
-
-
-
-

Increase (decrease) in debt
3,739
638
1,429
791

Gross proceeds from sales of assets
15,075
15,075
2,050
(13,025)

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
18,814
15,713
3,479
(12,234)

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-
-

- to improve the level of service
3,739
638
1,429
791
2

- to replace existing assets
9,114
10,936
3,267
(7,669)
3

Increase (decrease) in reserves
5,973
4,140
(1,765)
(5,905)

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
18,826
15,714
2,931
(12,783)

Surplus (deficit) of capital funding (C - D)
(12)
(1)
548
549

Funding balance ((A - B) + (C - D))
-
-
-
-

Expenses for this activity grouping include the following depreciation/amortisation charge
12
1
4,305
4,304

*Only the Water activity includes metered water rates

Notes:

1. Wellington Waterfront Operations are no longer funded through a grant. The operating costs are now shown as payments to staff and suppliers.
2. Lombard Lane funding included in the 2014/15 Annual Plan, subject to associated private development taking place.
3. Wellington Waterfront Limited capital programme rescheduling as part of the 2013/14 Annual Plan moved capital expenditure from 2014/15 into 2013/14.

Funding Impact Statement
— building and development control

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
8,857
8,329
7,319
(1,010)

Targeted rates (other than a targeted rate for water supply)
-
-
-
-

Subsidies and grants for operating purposes
-
-
-
-

Fees, charges, and targeted rates for water supply*
11,425
11,258
12,655
1,397
1

Interest and dividends from investments
423
94
224
130

Local authorities fuel tax, fines, infringement fees, and other receipts
29
58
24
(34)

Total operating funding (A)
20,734
19,739
20,222
483

Applications of operating funding

Payments to staff and suppliers
12,135
11,062
12,991
1,929
2

Finance costs
-
-
-
-

Internal charges and overheads applied
8,407
8,616
6,971
(1,645)

Other operating funding applications
35
37
135
98

Total applications of operating funding (B)
20,577
19,715
20,097
382

Surplus (deficit) of operating funding (A - B)
157
24
125
101

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-
-

Development and financial contributions
-
-
-
-

Increase (decrease) in debt
13,234
14,454
17,651
3,197

Gross proceeds from sales of assets
-
-
-
-

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
13,234
14,454
17,651
3,197

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-
-

- to improve the level of service
13,234
14,454
17,651
3,197
3

- to replace existing assets
-
-
-
-

Increase (decrease) in reserves
157
24
125
101

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
13,391
14,478
17,776
3,298

Surplus (deficit) of capital funding (C - D)
(157)
(24)
(125)
(101)

Funding balance ((A - B) + (C - D))
-
-
-
-

Expenses for this activity grouping include the following depreciation/amortisation charge
157
24
125
101

*Only the Water activity includes metered water rates

Notes:

1. Includes additional revenue associated with the signing of a contract to provide building consenting services to the Christchurch City Council that was not in place at the time of the 2012–22 Long-term Plan.
2. There are increased building compliance and consent costs associated with the Christchurch City Council contract and increased earthquake strengthening costs in this activity. Some of these costs were previously classified as corporate costs as part of the 2012-22 Long-term Plan.
3. The programme to strengthen the Council’s earthquake-prone buildings has changed since the setting of the 2012–22 Long-term Plan. The programme includes the large project to strengthen the Town Hall.

Funding Impact Statement
— transport

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
27,924
32,565
29,503
(3,062)

Targeted rates (other than a targeted rate for water supply)
33
33
33
-

Subsidies and grants for operating purposes
4,667
4,465
4,774
309

Fees, charges, and targeted rates for water supply*
2,100
2,246
2,100
(146)

Interest and dividends from investments
-
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-
-

Total operating funding (A)
34,724
39,309
36,410
(2,899)

Applications of operating funding

Payments to staff and suppliers
11,852
13,165
12,530
(635)
1

Finance costs
4,303
5,481
4,774
(707)

Internal charges and overheads applied
6,696
6,122
5,785
(337)

Other operating funding applications
10
-
10
10

Total applications of operating funding (B)
22,861
24,768
23,099
(1,669)

Surplus (deficit) of operating funding (A - B)
11,863
14,541
13,311
(1,230)

Sources of capital funding

Subsidies and grants for capital expenditure
10,264
10,884
10,590
(294)

Development and financial contributions
987
987
539
(448)

Increase (decrease) in debt
3,000
6,589
9,418
2,829

Gross proceeds from sales of assets
-
-
-
-

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
14,251
18,460
20,547
2,087

Applications of capital funding

Capital expenditure

- to meet additional demand
127
2,247
1,765
(482)
2

- to improve the level of service
6,406
8,531
10,968
2,437
2

- to replace existing assets
24,786
26,224
24,979
(1,245)
3

Increase (decrease) in reserves
(5,205)
(4,001)
(3,854)
147

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
26,114
33,001
33,858
857

Surplus (deficit) of capital funding (C - D)
(11,863)
(14,541)
(13,311)
1,230

Funding balance ((A - B) + (C - D))
-
-
-
-

Expenses for this activity grouping include the following depreciation/amortisation charge
20,461
22,939
22,285
(654)

*Only the Water activity includes metered water rates

Notes:

1. A roading corridor contract signed as part of the 2013/14 Annual Plan delivered savings for existing service levels, this has resulted in lower costs in the 2014/15 Annual Plan.
2. Increased capital funding for cycleways has been included in the 2014/15 Annual Plan, along with increased funding for rural roading improvements and a reduction in the funding required to complete the Johnsoville roading upgrade.
3. A roading corridor contract signed as part of the 2013/14 Annual Plan delivered savings for existing service levels, and has resulted in lower asset renewal costs in the 2014/15 Annual Plan. Part of the variance is due to the enhancement of asset management planning systems and improved asset information.

Funding Impact Statement
— parking

AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
(15,638)
(16,842)
(14,086)
2,756

Targeted rates (other than a targeted rate for water supply)
-
-
-
-

Subsidies and grants for operating purposes
-
-
-
-

Fees, charges, and targeted rates for water supply*
17,992
19,044
18,316
(728)
1

Interest and dividends from investments
-
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
8,800
10,451
7,706
(2,745)
2

Total operating funding (A)
11,154
12,653
11,936
(717)

Applications of operating funding

Payments to staff and suppliers
10,071
12,048
9,850
(2,198)
3

Finance costs
17
13
17
4

Internal charges and overheads applied
549
613
1,593
980

Other operating funding applications
-
-
1
1

Total applications of operating funding (B)
10,637
12,674
11,461
(1,213)

Surplus (deficit) of operating funding (A - B)
517
(21)
475
496

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-
-

Development and financial contributions
-
-
-
-

Increase (decrease) in debt
1
-
30
30

Gross proceeds from sales of assets
-
-
-
-

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
1
-
30
30

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-
-

- to improve the level of service
1
-
30
30

- to replace existing assets
-
-
150
150

Increase (decrease) in reserves
517
(21)
325
346

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
518
(21)
505
526

Surplus (deficit) of capital funding (C - D)
(517)
21
(475)
(496)

Funding balance ((A - B) + (C - D))
-
-
-
-

Expenses for this activity grouping include the following depreciation/amortisation charge
517
435
475
40

*Only the Water activity includes metered water rates

Notes:

1. Reduced revenue forecast from parking fees.
2. Reduced revenue forecast from parking enforcement.
3. Reduction in transaction based parking costs as a result of lower revenue forecast and savings in parking enforcement costs.

Funding Impact Statement (Excluding GST)

Rate
Category
Factor
Differential Charge Type
Total Value of Factor*
Rate/charge
Rates yield GST Exclusive
$000

General rate
Base (Residential)
Capital Value
Base differential use
$36,387,854,000
¢0.200769
$73,056

Commercial, Industrial & Business
Capital Value
Commercial, industrial & business use
$10,864,820,000
¢0.560350
$60,881

TOTAL

$133,937

Sewerage targeted rate
Base (Residential)
Fixed amount / rating unit
Base differential use per connection status
66583 properties
$106.60
$7,097

Capital Value
Base differential use per connection status
$38,604,670,000
¢0.038853
$14,999

Commercial, Industrial & Business
Capital Value
Commercial, industrial and business use per connection status
$9,241,123,000
¢0.153228
$14,160

TOTAL

$36,257

Water targeted rate
Base (Residential)
(without water meter)
Fixed amount / rating unit
Base differential use per connection status without a water meter
59058 properties
$137.70
$8,132

Capital Value
Base differential use per connection status without a water meter
$31,467,251,000
¢0.047383
$14,910

Base (Residential)
(with water meter)
Consumption unit charge
Base differential use per connection status with a water meter
n/a
$1.870/m³
$452

Fixed amount / rating unit
Base differential use per connection status with a water meter
n/a
$111.90
$78

Commercial, Industrial & Business
(without water meter)
Capital Value
Commercial, industrial and business use per connection status without a water meter
$610,676,000
¢0.387439
$2,366

Commercial, Industrial & Business
(with water meter)
Consumption unit charge
Commercial, industrial and business use per connection status with a water meter
n/a
$1.870/m³
$13,000

Fixed amount / rating unit
Commercial, industrial and business use per connection status with a water meter
n/a
$111.90
$348

TOTAL

$39,288

Stormwater targeted rate
Base (Residential excluding rural)
Capital Value
Base differental use (excluding rural)
$35,903,385,000
¢0.040252
$14,452

Commercial, Industrial & Business (excluding rural)
Capital Value
Commercial, industrial and business use (excluding rural)
$9,621,552,000
¢0.043610
$4,196

TOTAL

$18,648

Base sector targeted rate
Base (Residential)
Capital Value
Residential use
$36,336,101,000
¢0.018998
$6,902

Commercial sector targeted rate
Commercial, Industrial & Business
Capital Value
Commercial, industrial & business use
$10,834,820,000
¢0.046406
$5,028

Downtown targeted rate
Commercial, Industrial & Business
Capital Value
Commercial, industrial & business use located in the downtown area
$7,341,671,000
¢0.0191768
$14,079

Tawa driveways targeted rate
Base (Residential)
Fixed amount / rating unit
Shared residential access driveways in maintained by Council in the suburb of Tawa (extent of provision of service)
251 properties
$133.33
$33

Marsden Village targeted rate
Commercial, Industrial & Business
Capital Value
Commercial, industrial & business use located in Marsden shopping village area
$11,905,000
¢0.121538
$14

Mirarmar Business Improvement District targeted rate
Commercial, Industrial & Business
Fixed amount / rating unit
Commercial, industrial & business use located in the Mirarmar Business Improvement District area
130 properties
$365.00
$47

Capital Value over $1,000,000 per rating unit
Commercial, industrial & business use located in the Mirarmar Business Improvement District area for all capital value over $1,000,000 CV per rating unit
$90,990,000
¢0.036174
$33

TOTAL

$80

TOTAL RATES REQUIREMENT (excluding GST)

$254,266

Note: When rates for 2014/15 are assessed, GST will be applied to the final rates. The total rates requirement includes rates remissions, but excludes rates penalties which are budgeted separately.

Funding Impact Statement
— rating mechanisms

Rates

Rates are assessed under the Local Government (Rating) Act 2002 (the Act) on all rateable rating units in the Rating Information Database. Where rates are based on value, the capital value of the property as assessed by Quotable Value New Zealand Limited will apply. The latest city-wide revaluation was carried out as at 1 September 2012. This revaluation remains effective for the 2014/15 rating year, except where subsequent maintenance valuations have been required under valuation rules or the Council’s rating policies.

Policy objective:

To provide the Council with adequate income to carry out its mission and objectives.

To support the Council’s achievement of its strategic objectives.

To be simply administered, easily understood, allow for consistent application and generate minimal compliance costs.

To spread the incidence of rates as equitably as possible by balancing the level of service provided by the Council with ability to pay and the incidence of costs in relation to benefits received.

To be neutral in that it does not encourage people to redirect activity in order to avoid its impact.

To reflect the decisions of the Council’s policies and rating reviews.

General Rates

General rates are set under section 13 of the Act on all rateable rating units in the City of Wellington.

The Council proposes to set a general rate based on the capital value of each rating unit within the city.

The general rate will be set on a differential basis, based on land use. All rating units (or part thereof) will be classified for the purposes of general rates within one of the following rating differentials.

Differential Rating Categories

Base Differential

This includes:

a. Separately rateable land used solely for one or more household units; excluding those properties that provide short stay (28 days or less) commercial accommodation for which a tariff is charged
b. Vacant land zoned residential
c. Rural land (including farmland and lifestyle blocks) under the District Plan that is administered by the Council, but excluding any rating unit that is used for rural industrial purposes
d. Separately-rateable land occupied by a charitable organisation which is deemed by the Council to be used exclusively or principally for sporting, recreation or community purposes and that does not generate any private pecuniary profit.

This category has a general rate differential rating factor of 1.0.

Commercial, Industrial and Business Differential

This includes:

a. Separately-rateable land used for a commercial or industrial purpose
b. Vacant land zoned commercial, industrial or rural industrial under the District Plan administered by the Council
c. Land used for offices, administrative and/or associated functions
d. Land used for commercial accommodation for which a tariff is charged and where the principal purpose is the provision of short stay (28 days or less) accommodation
e. Business-related premises used principally for private pecuniary benefit
f. Utility networks
g. Any property not otherwise categorised within the Base Differential.

This category has a general rate differential rating factor of 2.8.

Differential Rating Category Conditions

Differential rating 2.8:1 Commercial:Base

The differential apportionment for the commercial, industrial and business sector is 2.8 times the General rate per dollar of capital value payable by those properties incorporated under the Base (Residential) differential. No changes are proposed to the differential apportionment in 2014/15.

The separated parts of a rating unit will be differentially rated where a part of the property is non-rateable or the property fits under one or more rating differential and either:

a) The total capital value of the rating unit is above $800,000 or
b) Minority use(s) account for more than 30 percent of the total capital value of the rating unit.

In any other case, the General rate differential is determined by principal use.

In regard to the rates attributable to a rating unit during the transition period between two differential rating categories, a ratepayer may apply for a change in rating category at any time between the lodgement of a building consent application with the Council (on the condition that the principal prior use has ended) and the earlier of either:

a) The time at which the Council gives final approval of the completed works, or
b) The property is deemed (by the Council) to be available for its intended use.

In situations where the change in land use does not require a Council consent, but warrants a change in differential rating category, the onus is on the ratepayer to inform the Council prior to the property being utilised under the new use.

The rating differential classification of all rating units must be set prior to the commencement of a rating year and will remain in place for that entire rating year. Any change in circumstances that results in a change of differential classification during a rating year will apply from 1 July of the following rating year.

Any property eligible for mandatory 50 percent non-rateability under Part 2, Schedule 1, of the Act, will be first classified under the appropriate General rate differential classifications and the non-rateability applied to that rate.

Uniform Annual General Charge

The Council does not assess a uniform annual general charge.

Non-Rateable Land

Non-Rateable

Includes any land referred to in Part 1, Schedule 1 of the Act. This land is non-rateable with the exception of targeted rates for sewerage and water where rates are applicable.

50 Percent Non-Rateable

Includes all land referred to in Part 2, Schedule 1 of the Act. This land is 50 percent non-rateable in respect of the rates that would have applied had the property not been classified as non-rateable, with the exception of targeted rates for sewerage and water for which the land is fully rateable.

Targeted Rates

Targeted rates are set under section 16 of the Act.

The Council has not adopted any lump sum contribution schemes under part 4A of the Act in respect of its targeted rates, and will not accept lump sum contributions in respect of any targeted rate.

Sewerage Rate

Targeted sewerage rates are to be apportioned 60 percent:40 percent of rates between properties incorporated under the Base differential and the Commercial, Industrial and Business differential in accordance with the Revenue and Financing Policy. This rate pays for the cost of the provision of the sewerage treatment facilities for the city.

For the purposes of these rates the sewerage collection and disposal service is treated as being provided if the rating unit is connected to a public sewerage drain (either directly or indirectly), irrespective of whether the property is considered fully rateable or is mandatory non-rateable or 50 percent non-rateable under Schedule 1 of the Act.

The targeted sewerage rate is calculated as follows:

For rating units incorporated in the Commercial, Industrial and Business differential:

A rate per dollar of capital value on all rating units connected to a public sewerage drain, to collect 40 percent of the required rates funding, after having deducted the total dollar amount budgeted to be collected through trade waste charges (excluding consent fees).

For rating units incorporated in the Base differential:

A fixed amount per annum per rating unit for administration, plus a rate per dollar of capital value on all rating units connected to a public sewerage drain, to collect 60 percent of the required rate funding.

Water Rate

A targeted rate for water is to be apportioned with the aim of achieving a 60 percent:40 percent split between properties incorporated under the Base differential and the Commercial, Industrial and Business differential in accordance with the Revenue and Financing Policy.

This rate pays for water collection and treatment facilities, the water distribution network and water conservation for the city.

This rate is set on all rating units serviced by a water connection.

For the purposes of these rates, the water service is treated as being provided if the rating unit is connected to the public water supply (either directly or indirectly), irrespective of whether the property is considered fully rateable or is mandatorily non-rateable or 50 percent non-rateable under Schedule 1 or 2 of the Act.

The targeted Water rate is calculated as follows:

For rating units incorporated in the Commercial, Industrial and Business differential, either:

a) A consumption unit rate per cubic metre of water used for all rating units connected to the public water supply with a water meter installed, plus a fixed amount per annum per rating unit for administration.

Or

b) A rate per dollar of capital value on all rating units connected to the public water supply, without a water meter installed.

For rating units rated incorporated in the Base differential, either:

a) A consumption unit rate per cubic metre of water used for all rating units connected to the public water supply with a water meter installed, plus a fixed amount per annum per rating unit for administration.

Or

b) A fixed amount per annum per rating unit for administration plus a rate per dollar of capital value on all rating units connected to the public water supply without a water meter installed, to collect the required Base differential contribution.

Stormwater Network Rate

A targeted stormwater rate is to be apportioned 77.5 percent to the non-rural rating units incorporated under the Base differential and 22.5 percent to the non-rural rating units incorporated under the Commercial, Industrial and Business differential in accordance with the Revenue and Financing Policy. This rate pays for the cost of the provision of the stormwater collection/disposal network for the city.

Properties classified as rural under the Council’s District Plan are excluded from the liability of this rate.

The targeted Stormwater network rate is calculated as follows:

For non-rural rating units incorporated in the Commercial, Industrial and Business differential:

A rate per dollar of capital value to collect 22.5 percent of the required rates funding.

For non-rural rating units incorporated in the Base differential:

A rate per dollar of capital value to collect 77.5 percent of the required rates funding.

Commercial, Industrial and Business Sector Targeted Rate

This rate pays for activities where the Council’s Revenue and Financing Policy identifies that the benefit can be attributed to the commercial, industrial and business sector and where the activity is not incorporated in other service related targeted rates. This incorporates the following:

100 percent of the cost of the events attraction and support activity.

This rate is assessed on all properties incorporated in the commercial, industrial and business sector and is calculated on a rate per dollar of rateable capital value.

Base Sector Targeted Rate

This rate pays for activities where the Council’s Revenue and Financing Policy identifies that the benefit can be attributed to properties incorporated under the Base differential rating category (incorporating residential ratepayers). This incorporates the following activities:

100 percent of the facilitation of community environmental initiatives, cultural grants, facilitation of recreation partnerships and community advocacy activities.

98 percent of the provision of community centres and halls activities.

This rate is assessed on all properties incorporated under the Base differential rating category and is calculated on a rate per dollar of rateable capital value.

Downtown Targeted Rate

This rate pays for tourism promotion and retail support (free weekend parking). It also pays for 70 percent of the visitor attractions activity and 25 percent of galleries and museums activity.

This rate is assessed on all commercial, industrial and business properties in the downtown area and is calculated on a rate per dollar of rateable capital value. For the purpose of this rate, the downtown area refers to the area as described by the Downtown Area map as follows:

Tawa Driveways Targeted Rate

This rate pays for the maintenance of a specified group of residential access driveways in the suburb of Tawa, overseen by the Council. This rate is assessed on a specific group of rating units that have shared access driveway that are maintained by Council in the former Tawa Borough at a fixed amount per annum per rating unit.

Marsden Village Targeted Rate

This rate is collected by the Council on behalf of the Marsden Village Association on all commercial, industrial and business properties in the Marsden shopping village (see map) and is calculated on a rate per dollar of capital value to fund the maintenance of the area.

Miramar Business Improvement District Targeted Rate

This rate is set by Council to fund the Business Improvement District activities of Enterprise Miramar Peninsula Incorporated.

The category of land for which this rate is set is on all rating units within the Miramar Business Improvement District (see map) which are subject to the “commercial, industrial and business” differential, but excluding any rating unit that is a substation or used by local or central government for a non-business purpose.

Liability for this rate is calculated as a fixed amount per rating unit, plus a rate per dollar of capital value for any capital value over $1 million per rating unit.

Indicative Rates*

The following table shows the indicative residential property rates inclusive of GST for properties without a water meter for 2014/15:

Capital Values
$
2014/15 Rates
$
Increase over 2013/14
%

200,000
1,077
2.53%

300,000
1,476
2.44%

400,000
1,874
2.40%

500,000
2,272
2.37%

600,000
2,670
2.34%

700,000
3,068
2.33%

800,000
3,466
2.32%

900,000
3,865
2.31%

The following table shows the indicative downtown commercial property rates inclusive of GST (for properties with a water meter) for 2014/15. This excludes water by consumption which is charged based on actual usage:

Capital Values
$
2014/15 Rates
$
Increase over 2013/14
%

3,250,000
37,483
2.33%

3,500,000
40,344
2.30%

3,750,000
43,206
2.27%

4,000,000
46,068
2.25%

4,250,000
48,929
2.23%

4,500,000
51,791
2.21%

4,750,000
54,653
2.20%

5,000,000
57,514
2.18%

Rates Remission and Postponement Policies

Refer to the Council Rates Remission and Postponement Policies. Changes to the rates remission policy are described on page 107.

Prospective Statement of Comprehensive Financial Performance

AP
2013/14
$000
LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

REVENUE

Revenue from rates (excluding metered water)
233,561
244,025
241,387
(2,638)
1

Revenue from water by meter
13,333
12,822
13,879
1,057
2

Revenue from development contributions
5,000
5,000
2,000
(3,000)
3

Revenue from grants, subsidies and reimbursements
49,746
46,618
51,090
4,472
4

Revenue from operating activities
101,926
103,031
119,913
16,882

Investments
19,118
18,455
20,215
1,760
5

Finance revenue
560
562
603
41

Other revenue
1,120
1,164
1,100
(64)

TOTAL REVENUE
424,364
431,677
450,187
18,510

EXPENSE

Finance expense
21,965
25,096
23,041
(2,055)
6

Expenditure on operating activities
274,623
271,688
298,596
26,908
7

Depreciation and amortisation
92,109
101,138
102,165
1,027

TOTAL EXPENSE
388,697
397,922
423,802
25,880

NET SURPLUS FOR THE YEAR
35,667
33,755
26,385
(7,370)
8

OTHER COMPREHENSIVE REVENUE AND EXPENSE

Items that will not be classified to surplus/deficit

Revaluations - fair value movement on property, plant and equipment - net
176,121
76,419
57,073
(19,346)

TOTAL OTHER COMPREHENSIVE REVENUE AND EXPENSE
176,121
76,419
57,073
(19,346)

TOTAL COMPREHENSIVE REVENUE AND EXPENSE FOR THE YEAR
211,788
110,174
83,458
(26,716)

Notes:

1. Lower levels of inflation compared to the assumptions used in the 2012–22 Long-term Plan, which has changed the rates increase target and limit
2. Reclassification of rates between general rates and water rates
3. The expected development contributions income in 2014/15 has been reduced to reflect actual current income and changes to the Development Contributions Policy.
4. Changes in the timings for the Crown funding for the housing upgrade programme results in higher 2014/15 revenue.
5. Airport dividend forecast at 2012/13 levels, this is higher than the assumption used in the 2012–22 Long-term Plan.
6. Forecast interest rates are lower than was forecast in the 2012–22 Long-term Plan for the same period, along with lower than expected debt levels.
7. Details of specific changes to operational costs can be found in the Funding Impact Statements. This will outline at an activity level the key changes.

8. Explanation of Net Operating Surplus:

EXPENDITURE NOT FUNDED UNDER SECTION 100 OF LGA
AP
2014/15
$000

NZTA Transport funded projects
(7,860)

General
(4,000)

Moa Point sewerage treatment plant
(3,226)

Decomissioned Living Earth joint venture plant
(235)

Wellington Waterfront Limited depreciation
(4,294)

TOTAL EXPENDITURE NOT FUNDED UNDER SECTION 100 OF LGA
(19,615)

REVENUE RECEIVED FOR CAPITAL PURPOSES

NZTA capital funding
11,194

Housing ring-fenced surplus
(3,378)

Housing grant
32,036

Development contributions
2,000

Bequests, trust and other external funding
749

TOTAL REVENUE RECEIVED FOR CAPITAL PURPOSES
42,601

ITEMS FUNDED FROM PRIOR YEAR SURPLUSES

Wellington Waterfront Limited interest
(559)

Economic Development Fund
(3,554)

TOTAL ITEMS FUNDED FROM PRIOR YEAR SURPLUS
(4,113)

ADDITIONAL ITEMS

Self-insurance
750

Weathertight Homes funding
6,662

Waste minimisation activity
124

Reserves purchases and development fund
(24)

TOTAL ADDITIONAL ITEMS
7,512

TOTAL SURPLUS
26,385

Prospective Statement of Financial Position

AP
2013/14
$000
LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

ASSETS

Current assets

Cash and cash equivalents
2,622
19,641
2,389
(17,252)
1

Derivative financial assets
108
-
409
409

Trade and other receivables
41,658
38,090
39,556
1,466

Prepayments
14,211
5,869
15,048
9,179
2

Inventories
866
1,134
875
(259)

Total current assets
59,465
64,734
58,277
(6,457)

Non-current assets

Derivative financial assets
949
1,275
3,280
2,005

Trade and other receivables
12,675
-
-
-

Other financial assets
8,392
7,918
8,928
1,010

Intangibles
13,900
13,036
16,743
3,707

Investment properties
200,474
203,742
205,951
2,209

Property, plant & equipment
6,768,587
6,985,012
6,974,749
(10,263)

Investment in controlled entities
3,809
3,809
3,809
-

Investment in associates
19,519
19,519
19,519
-

Total non-current assets
7,028,305
7,234,311
7,232,979
(1,332)

TOTAL ASSETS
7,087,770
7,299,045
7,291,256
(7,789)

LIABILITIES

Current liabilities

Derivative financial liabilities
469
26
404
378

Trade and other payables
53,217
60,435
57,945
(2,490)

Revenue in advance
11,889
10,320
11,405
1,085

Borrowings
129,572
92,067
155,562
63,495
3

Employee benefit liabilities and provisions
6,638
5,694
5,698
4

Provision for other liabilities
16,797
11,708
17,466
5,758

Total current liabilities
218,582
180,250
248,480
68,230

Non-current liabilities

Derivative financial liabilities
23,812
10,062
12,831
2,769

Employee benefit liabilities
1,649
-
1,474
1,474

Borrowings
246,063
336,864
248,601
(88,262)
3

Provisions for other liabilities
27,288
22,196
43,687
21,491

Total non-current liabilities
298,812
369,122
306,594
(62,528)

TOTAL LIABILITIES
517,394
549,372
555,073
5,701

EQUITY

Accumulated funds and retained earnings
4,985,988
4,974,489
4,992,265
17,776

Revaluation reserves
1,593,814
1,768,045
1,743,064
(24,981)
4

Hedging reserve
(23,896)
(9,173)
(9,955)
(782)

Fair value through other comprehensive revenue and expense reserve
586
316
93
(223)

Restricted funds
13,884
15,996
10,716
(5,280)

TOTAL EQUITY
6,570,376
6,749,673
6,736,183
(13,490)

TOTAL EQUITY AND LIABILITIES
7,087,770
7,299,045
7,291,256
(7,789)

Notes:

1. Assumptions on the funds held on deposit changed between the 2012–22 Long-term Plan and the 2014/15 Annual Plan.
2. Higher level of prepayments in the 2014/15 Annual Plan compared to the same period in the 2012–22 Long-term Plan. Key driver is increased insurance prepayment, due to higher premiums and a different payment period.
3. Inclusion of capital expenditure carry forward assumption in the 2014/15 Annual Plan not included in the 2012–22 Long-term Plan for the same period. The Council is committed to reducing the amount of capital expenditure that is not completed in the year it is planned.
4. Reduction due to changes in assumptions used for asset revaluations and reductions in the capital expenditure programme in 2013/14 and 2014/15.

Prospective Statement of Changes in net assets/Equity

AP
2013/14
$000
LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

NET ASSETS/EQUITY - OPENING BALANCES

Accumulated funds and retained earnings
4,950,327
4,940,735
4,965,881
25,146
1

Revaluation reserves
1,417,693
1,691,626
1,685,991
(5,635)

Hedging reserve
(23,896)
(9,173)
(9,955)
(782)

Fair value through other comprehensive revenue and expense reserve
586
316
93
(223)

Restricted funds
13,878
15,994
10,715
(5,279)

TOTAL EQUITY - Opening balance
6,358,588
6,639,498
6,652,725
13,227

CHANGES IN EQUITY

Retained earnings

Net surplus for the year
35,667
33,756
26,385
(7,371)

Transfer to restricted funds
(32)
(767)
(3,766)
(2,999)

Transfer from restricted funds
26
765
3,765
3,000

Revaluation reserves

Fair value movement - property plant and equipment - net
176,121
76,419
57,073
(19,346)

Restricted Funds

Transfer to retained earnings
(26)
(765)
(3,765)
(3,000)

Transfer from retained earnings
32
767
3,766
2,999

TOTAL COMPREHENSIVE REVENUE AND EXPENSE
211,788
110,175
83,458
(26,717)

NET ASSETS/EQUITY - CLOSING BALANCES

Accumulated funds and retained earnings
4,985,988
4,974,489
4,992,265
17,776

Revaluation reserves
1,593,814
1,768,045
1,743,064
(24,981)

Hedging reserve
(23,896)
(9,173)
(9,955)
(782)

Fair value through other comprehensive revenue and expense reserve
586
316
93
(223)

Restricted funds
13,884
15,996
10,716
(5,280)

TOTAL EQUITY - Closing balance
6,570,376
6,749,673
6,736,183
(13,490)

Notes:

1. Variations in actual opening balance between the 2012–22 Long-term Plan and the opening balance for the 2014/15 Annual Plan.

Prospective Statement of Cash Flows

AP
2013/14
$000
LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
$000
Notes

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from rates - Council (excluding metered water)
233,551
244,310
241,387
(2,923)

Receipts from water rates by meter
13,333
12,822
13,879
1,057

Receipts from rates - Greater Wellington Regional Council
50,341
-
50,341
50,341
1

Receipts from activities and other income
107,022
108,910
123,013
14,103

Receipts from grants and subsidies - operating
7,251
6,871
7,715
844

Receipts from grants and subsidies - capital
42,495
39,747
43,375
3,628

Receipts from investment property lease rentals
9,220
9,157
9,215
58

Cash paid to suppliers and employees
(260,882)
(258,451)
(286,780)
(28,329)

Rates paid to Greater Wellington Regional Council
(50,341)
-
(50,341)
(50,341)
1

Grants paid
(29,389)
(30,232)
(28,719)
1,513

NET CASH FLOWS FROM OPERATING ACTIVITIES
122,601
133,134
123,085
(10,049)

CASH FLOWS FROM INVESTING ACTIVITIES

Dividends received
9,898
9,298
11,000
1,702

Interest received
10
10
44
34

Proceeds from sale of property, plant and equipment
15,075
-
4,050
4,050
2

Purchase of intangibles
(3,305)
(7,276)
(8,777)
(1,501)

Purchase of property, plant and equipment
(154,414)
(137,992)
(155,724)
(17,732)
3

NET CASH FLOWS FROM INVESTING ACTIVITIES
(132,736)
(135,960)
(149,407)
(13,447)

CASH FLOWS FROM FINANCING ACTIVITIES

New borrowings
29,967
26,934
203,964
177,030
4

Repayment of borrowings
-
-
(155,562)
(155,562)
4

Interest paid on borrowings
(20,866)
(24,108)
(22,080)
2,028

NET CASH FLOWS FROM FINANCING ACTIVITIES
9,101
2,826
26,322
23,496

Net increase/(decrease) in cash and cash equivalents
-
-
-
-

Cash and cash equivalents at beginning of year
2,622
19,641
2,389
(17,252)
5

CASH AND CASH EQUIVALENTS AT END OF YEAR
2,622
19,641
2,389
(17,252)

Notes:

1. Wellington City Council collects rates on behalf of GWRC. The 2012–22 Long-term Plan showed cash flows net of this transaction.
2. Timing changes in proceeds from Wellington Waterfront Limited and forecasting land sales expectations.
3. Changes in the timings of the capital expenditure programme.
4. Changes in reporting requirements.
5. Variations in actual opening balance between the 2012–22 Long-term Plan and the opening balance for the 2014/15 Annual Plan.

Prospective Statement of Changes in Restricted Funds

Opening balance
2014/15
$000
Deposits

$000
Expenditure

$000
Closing balance
2014/15
$000

Purpose

SPECIAL RESERVES AND FUNDS

Reserve purchase and
development fund
285
-
-
285
Used to purchase and develop reserve areas within the city.

Self insurance reserve
10,022
750
(750)
10,022
Allows the Council to meet the uninsured portion of insurance claims.

Economic Development Fund
-
3,000
(3,000)
-
-

Total special reserves and funds
10,307
3,750
(3,750)
10,307

TRUSTS AND BEQUESTS

A Graham Trust
3
-
-
3
For the upkeep of a specific area of Karori Cemetery

A W Newton Bequest
286
14
-
300
For the benefit of art (Fine Arts Wellington), education (technical and other night schools) and athletics (rowing)

E A McMillan Estate
6
-
-
6
For the benefit of the public library

E Pengelly Bequest
12
1
-
13
For the purchase of children’s books

F L Irvine Smith Memorial
6
-
-
6
For the purchase of books for the Khandallah Library

Greek NZ Memorial Association
5
-
-
5
For the maintenance and upgrade of the memorial

Kidsarus 2 Donation
3
-
-
3
For the purchase of children’s books

Kirkaldie and Stains Donation
17
-
-
17
For the beautification of the BNZ site

QEII Memorial Book Fund
21
1
-
22
For the purchase of books on the Commonwealth

Schola Cantorum Trust
6
-
-
6
For the purchase of musical scores

Stanley Banks Trust
19
-
(15)
4
To be available for bursaries for children of World War II servicemen

Terawhiti Grant
10
-
-
10
To be used on library book purchases

Wellington Beautifying Society Bequest
14
-
-
14
Used towards “the Greening of Taranaki Street” project

Total trusts and bequests
408
16
(15)
409

Total restricted funds
10,715
3,766
(3,765)
10,716

In addition to the above, the Council is proposing to establish a Forest Carbon Reserve Fund on the basis that it will reinvest a share of revenue from the sale of forestry emission units under the New Zealand Emissions Trading Scheme or Permanent Forest Sink Initiative to protect or enhance the Council’s forest carbon stocks. Other revenues generated from the sale of emission units or from costs recovered by way of fees and charges in regard to the New Zealand Emissions Trading Scheme will be treated as other revenues received by the Council. We are not anticipating any revenue for this fund in the 2014/15 year.

Significant Accounting Policies

Reporting entity

Basis of preparation

Judgements and estimations

Revenue

Expenses

Taxation

Goods and Services Tax (GST)

Financial instruments

Inventories

Investment properties

Non-current assets classified as held for sale

Property, plant and equipment

Intangible assets

Research and Development

Leases

Employee Benefit Liabilities

Provisions

Net Assets/Equity

Prospective Statement of Cash Flows

Related parties

Cost allocation

Comparatives

Public Benefit Entity Financial Reporting Standard 42 Prospective Financial Statements (PBE FRS 42)

Reporting entity

Wellington City Council is a territorial local authority governed by the Local Government Act 2002.

The primary objective of the Council is to provide goods or services for community or social benefits rather than making a financial return. Accordingly, for the purposes of financial reporting, as the Council is audited by the Auditor General, it is classed as a Public Sector Public Benefit Entity.

These prospective financial statements are for Wellington City Council (the Council) as a separate legal entity. Consolidated prospective financial statements comprising the Council and its controlled entities (subsidiaries), joint ventures and associates have not been prepared.

Basis of preparation

Statement of compliance

Due to ongoing discussions between the Local Government sector and its auditors on the application of certain new PBE standards, no change has been made in these prospective financial statements to reflect the new standards. The accounting policies have been updated to reflect the Council’s current interpretation of the new standards but they are subject to amendment. It is anticipated that any changes to the financial statements resulting from the application of the new Public Sector Public Benefit Entity Standards (PBE standards) are not expected to be material as they will be principally presentational differences only.

The prospective financial statements have been prepared in accordance with the requirements of the Local Government Act 2002, which includes the requirement to comply with New Zealand Generally Accepted Accounting Practice (NZ GAAP).

The prospective financial statements have been prepared to comply with PBE Standards for a Tier 1 entity. The Council is adopting the PBE standards for the first time in the periods presented in these financial statements.

The reporting period for these prospective financial statements is the year ending 30 June 2015. The prospective financial statements are presented in New Zealand dollars, rounded to the nearest thousand ($000), unless otherwise stated.

The accounting policies set out below have been applied consistently to all periods presented in these prospective financial statements.

Measurement base

The measurement basis applied is historical cost, modified by the revaluation of certain assets and liabilities as identified in this summary of significant accounting policies. The accrual basis of accounting has been used unless otherwise stated.

For the assets and liabilities recorded at fair value, fair value is defined as the amount for which an item could be exchanged, or a liability settled, between knowledgeable and willing parties in an arm’s-length transaction. For investment property, non-current assets classified as held for sale and items of property, plant and equipment which are revalued, the fair value is determined by reference to market value. The market value of a property is the estimated amount for which a property could be exchanged on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction.

Amounts expected to be recovered or settled more than one year after the end of the reporting period are recognised at their present value. The present value of the estimated future cash flows is calculated using applicable inflation factors and a discount rate. The inflation rates used are obtained from the latest relevant BERL26 forecasts and the discount rate is the Council’s forecast long-term cost of borrowing.

Judgements and estimations

The preparation of prospective financial statements using PBE standards requires the use of judgements, estimates and assumptions. Where material, information on the main assumptions is provided in the relevant accounting policy.

The estimates and assumptions are based on historical experience as well as other factors that are believed to be reasonable under the circumstances. Subsequent actual results may differ from these estimates.

The estimates and assumptions are reviewed on an ongoing basis and adjustments are made where necessary.

Judgements that have a significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in the relevant notes. Significant judgements and estimations include landfill post-closure costs, asset revaluations, impairments, certain fair value calculations and provisions.

Revenue

Revenue comprises rates, revenue from operating activities, investment revenue, gains, finance and other revenue and is measured at the fair value of consideration received or receivable.

Revenue may be derived from either exchange or non-exchange transactions.

Revenue from exchange transactions

Revenue from exchange transactions arises where the Council provides goods or services to another entity and directly receives approximately equal value (primarily in the form of cash in exchange) .

Revenue from non-exchange transactions

Revenue from non-exchange transactions arises from transactions that are not exchange transactions. Revenue from non-exchange transaction arises when the Council receives value from another party without giving approximately equal value directly in exchange for the value received.

Approximately equal value is considered to reflect a fair or market value, which is normally commensurate with an arm’s length commercial transaction between a willing buyer and willing seller. Many of the services that the Council provides for a fee are charged at below market value as they are subsidised by rates. Other services operate on a cost recovery or breakeven basis and are not considered to reflect a market return. Most of the Council’s revenue is therefore categorised as non-exchange.

An inflow of resources from a non-exchange transaction recognised as an asset, is recognised as revenue, except to the extent that a liability is also recognised in respect of the same inflow.

As the Council satisfies a present obligation recognised as a liability in respect of an inflow of resources from a non-exchange transaction recognised as an asset, it reduces the carrying amount of the liability recognised and recognises an amount of revenue equal to that reduction.

Specific accounting policies for major categories of revenue are outlined below:

Rates

Rates are set annually by resolution from the Council and relate to a particular financial year. All ratepayers are invoiced within the financial year for which the rates have been set. Rates revenue is recognised in full as at the date when rate assessment notices are sent to the ratepayers. Rates are a tax as they are payable under the Local Government Ratings Act 2002 and are therefore defined as non-exchange.

Water rates by meter are regulated in the same way as other rates and are taxes that use a specific charging mechanism to collect the rate and are non-exchange revenue.

Operating activities

The Council undertakes various activities as part of its normal operations, some of which generate revenue, but generally at below market rates. The following categories (except where noted) are classified as transfers, which are non-exchange transactions other than taxes.

Grants, subsidies and reimbursements

Grants and subsidies are recognised as revenue immediately except to the extent a liability is also recognised in respect of the same inflow. A liability is recognised when the resources received are subject to a condition such that the Council has the obligation to return those resources received in the event that the conditions attached are breached. As the Council satisfies the conditions, the carrying amount of the liability is reduced and an equal amount is recognised as revenue.

Reimbursements are recognised upon entitlement, which is when conditions pertaining to eligible expenditure have been fulfilled.

Development contributions

Development contributions are recognised as revenue when the Council provides, or is able to provide, the service for which the contribution was charged. In the event that the Council is unable to provide the service immediately, or the development contribution is refundable, the Council will recognise an asset and a liability and only recognise revenue as the liability is extinguished.

Rendering of services

Revenue from the rendering of services where the service provided is non-exchange is recognised when the transaction occurs to the extent that a liability is not also recognised.

Within rendering of services the only revenues considered to be exchange revenue are from Parking services (meter fees and permits) and commercial leases of some building assets. For these transactions the revenue is recognised by reference to the stage of completion of the transaction at the reporting date.

Fines and penalties

Revenue from fines and penalties (eg traffic and parking infringements, library overdue book fines, rates penalties) is recognised when infringement notices are issued or when the fines/penalties are otherwise imposed.

Sale of goods

The sale of goods is classified as exchange revenue. Sale of goods is recognised when products are sold to the customer and all risks and rewards of ownership have transferred to the customer.

Investment revenues

Dividends

Dividends from equity investments, other than those accounted for using equity accounting, are classified as exchange revenue and are recognised when the Council’s right to receive payment has been established.

Investment property lease rentals

Lease rentals (net of any incentives given) are classified as exchange revenue and recognised on a straight line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which benefits derived from the leased asset is diminished

Other revenue

Donated, subsidised or vested assets

Where a physical asset is acquired for nil or nominal consideration, with no conditions attached, the fair value of the asset received is recognised as non-exchange revenue when the control of the asset is transferred to the Council.

Gains

Gains include additional earnings on the disposal of property, plant and equipment and movements in the fair value of financial assets and liabilities.

Finance revenue

Interest

Interest revenue is exchange revenue and recognised using the effective interest rate method.

Donated services

The Council benefits from the voluntary service of many Wellingtonians in the delivery of its activities and services (e.g. beach cleaning and Otari-Wilton’s Bush guiding and planting). Due to the difficulty in determining the precise value of these donated services with sufficient reliability, donated services are not recognised in these financial statements.

Expenses

Specific accounting policies for major categories of expenditure are outlined below:

Operating activities

Grants and sponsorships

Expenditure is classified as a grant or sponsorship if it results in a transfer of resources (eg cash or physical assets) to another entity in return for compliance with certain conditions relating to the operating activities of that entity. It includes any expenditure arising from a funding arrangement with another entity that has been entered into to achieve the objectives of the Council. Grants and sponsorships are distinct from donations which are discretionary or charitable gifts. Where grants and sponsorships are discretionary until payment, the expense is recognised when the payment is made. Otherwise, the expense is recognised when the specified criteria have been fulfilled.

Finance expense

Interest

Interest expense is recognised using the effective interest rate method. All borrowing costs are expensed in the period in which they are incurred.

Depreciation and amortisation

Depreciation of property, plant and equipment and amortisation of intangible assets are charged on a straight-line basis over the estimated useful life of the associated assets.

Taxation

Income tax on the surplus or deficit for the year comprises current and deferred tax.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the end of the reporting period, plus any adjustment to tax payable in respect of previous periods.

Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the assets and liabilities, and the unused tax losses using tax rates enacted or substantively enacted at the end of the reporting period. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which they can be utilised.

Goods and Services Tax (GST)

All items in the prospective financial statements are exclusive of GST, with the exception of receivables and payables, which are stated as GST inclusive. Where GST is not recoverable as an input tax, it is recognised as part of the related asset or expense.

Financial instruments

Financial instruments include financial assets (loans and receivables and financial assets at fair value through other comprehensive revenue and expense), financial liabilities (payables and borrowings) and derivative financial instruments. Financial instruments are initially recognised on trade-date at their fair value plus transaction costs. Subsequent measurement of financial instruments depends on the classification determined by the Council. Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the Group has transferred substantially all of the risks and rewards of ownership.

Financial instruments are classified into the categories outlined below based on the purpose for which they were acquired. The classification is determined at initial recognition and re-evaluated at the end of each reporting period.

Financial assets

Financial assets are classified as loans and receivables or financial assets at fair value through other comprehensive revenue and expense.

Loans and receivables comprise cash and cash equivalents, trade and other receivables and loans and deposits.

Cash and cash equivalents comprise cash balances and call deposits with maturity dates of three months or less.

Trade and other receivables have fixed or determinable payments. They arise when the Group provides money, goods or services directly to a debtor, and has no intention of trading the receivable.

Loans and deposits include loans to other entities (including controlled entities and associates), and bank deposits with maturity dates of more than three months.

Financial assets in this category are recognised initially at fair value plus transaction costs and subsequently measured at amortised cost using the effective interest rate method. Fair value is estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date for assets of a similar maturity and credit risk. Trade and other receivables due in less than 12 months are recognised at their nominal value. A provision for impairment is recognised when there is objective evidence that the asset is impaired. As there are statutory remedies to recover unpaid rates, penalties and water meter charges, no provision has been made for impairment in respect of these receivables.

Financial assets at fair value through other comprehensive revenue and expense relate to equity investments that are held by the Council for long-term strategic purposes and therefore are not intended to be sold. Financial assets at fair value through other comprehensive revenue and expense are initially recorded at fair value plus transaction costs. They are subsequently measured at fair value and changes, other than impairment losses, are recognised directly in a reserve within equity. On disposal, the cumulative fair value gain or loss previously recognised directly in other comprehensive revenue and expense is recognised within surplus or deficit.

Financial liabilities

Financial liabilities comprise trade and other payables and borrowings. Financial liabilities with duration of more than 12 months are recognised initially at fair value plus transaction costs and subsequently measured at amortised cost using the effective interest rate method. Amortisation is recognised within surplus or deficit. Financial liabilities with duration of less than 12 months are recognised at their nominal value.

On disposal any gains or losses are recognised within surplus or deficit.

Derivatives

Derivative financial instruments include interest rate swaps used to hedge exposure to interest rate risk on borrowings. Derivatives are initially recognised at fair value, based on quoted market prices, and subsequently remeasured to fair value at the end of each reporting period. Fair value is determined by reference to quoted prices for similar instruments in active markets. Derivatives that do not qualify for hedge accounting are classified as non-hedged and fair value gains or losses are recognised within surplus or deficit.

Recognition of fair value gains or losses on derivatives that qualify for hedge accounting depends on the nature of the item being hedged. Where a derivative is used to hedge variability of cash flows (cash flow hedge), the effective part of any gain or loss is recognised within other comprehensive revenue and expense while the ineffective part is recognised within surplus or deficit. Gains or losses recognised in other comprehensive revenue and expense transfer to surplus or deficit in the same periods as when the hedged item affects the surplus or deficit. Where a derivative is used to hedge variability in the fair value of the Council’s fixed rate borrowings (fair value hedge), the gain or loss is recognised within surplus or deficit.

As per the International Swap Dealers’ Association (ISDA) master agreements, all swap payments or receipts are settled net.

Inventories

Inventories consumed in the provision of services (such as botanical supplies) are measured at the lower of cost and current replacement cost.

Inventories held for resale (such as rubbish bags), are recorded at the lower of cost (determined on a first-in, first-out basis) and net realisable value. This valuation includes allowances for slow-moving and obsolete stock. Net realisable value is the estimated selling price in the ordinary course of business.

Inventories held for distribution at no or nominal cost, are recorded at the lower of cost and current replacement cost.

Investment properties

Investment properties are properties which are held primarily to earn rental revenue or for capital growth or both. These include the Council’s ground leases, and certain land and buildings.

Investment properties exclude those properties held for strategic purposes or to provide a social service. This includes properties which generate cash inflows as the rental revenue is incidental to the purpose for holding the property. Such properties include the Council’s social housing assets, which are held within operational assets in property, plant and equipment. Borrowing costs incurred during the construction of investment property are not capitalised.

Investment properties are measured initially at cost and subsequently measured at fair value, determined annually by an independent registered valuer. Any gain or loss arising is recognised within surplus or deficit. Investment properties are not depreciated.

Non-current assets classified as held for sale

Non-current assets held for sale are separately classified as their carrying amount will be recovered through a sale transaction rather than through continuing use. A non-current asset is classified as held for sale where:

the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets;

a plan to sell the asset is in place and an active programme to locate a buyer has been initiated;

the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value;

the sale is expected to occur within one year or beyond one year where a delay has occurred which is caused by events beyond the Group’s control and there is sufficient evidence the Group remains committed to sell the asset;

actions required to complete the sale indicate it is unlikely that significant changes to the plan will be made or the plan will be withdrawn; and

a non-current asset classified as held for sale is recognised at the lower of its carrying amount or fair value less costs to sell. Impairment losses on initial classification are included within surplus or deficit.

Property, plant and equipment

Property, plant and equipment consists of operational assets, restricted assets and infrastructure assets.

Operational assets include land, the landfill post-closure asset, buildings, the Civic Centre complex, the library collection, and plant and equipment.

Restricted assets include art and cultural assets, zoo animals, restricted buildings, parks and reserves and the Town Belt. These assets provide a benefit or service to the community and in most cases cannot be disposed of because of legal or other restrictions.

Infrastructure assets include the roading network, water, waste and drainage reticulation networks, service concession assets and infrastructure land (including land under roads). Each asset type includes all items that are required for the network to function.

Vested assets are those assets where ownership and control is transferred to the Council from a third party (eg infrastructure assets constructed by developers and transferred to the Council on completion of a subdivision). Vested assets are recognised within their respective asset classes as above.

Heritage assets are tangible assets with historical, artistic, scientific, technological, geophysical or environmental qualities that are held and maintained principally for their contribution to knowledge and culture. The Council recognises these assets within these financial statements to the extent their value can be reliably measured.

Recognition

Expenditure is capitalised as property, plant and equipment when it creates a new asset or increases the economic benefits of an existing asset. Costs that do not meet the criteria for capitalisation are expensed.

Measurement

Property, plant and equipment is recognised initially at cost, unless acquired for nil or nominal cost (eg vested assets), in which case the asset is recognised at fair value at the date of transfer. The initial cost of property, plant and equipment includes the purchase consideration (or the fair value in the case of vested assets), and those costs that are directly attributable to bringing the asset into the location and condition necessary for its intended purpose. Subsequent expenditure that extends or expands the asset’s service potential is capitalised.

Borrowing costs incurred during the construction of property, plant and equipment are not capitalised.

After initial recognition, certain classes of property, plant and equipment are revalued to fair value. Where there is no active market for an asset, fair value is determined by optimised depreciated replacement cost.

Specific measurement policies for categories of property, plant and equipment are shown below:

Operational assets

Plant and equipment and the Civic Centre complex are measured at historical cost and not revalued.

Library collections are valued at depreciated replacement cost on a three-year cycle by the Council’s library staff in accordance with guidelines outlined in Valuation Guidance for Cultural and Heritage Assets, published by the Treasury Accounting Team, November 2002.

Land and buildings are valued at fair value on a three-year cycle by independent registered valuers.

Restricted assets

Art and cultural assets (artworks, sculptures and statues) are valued at historical cost. Zoo animals are stated at estimated replacement cost. All other restricted assets (buildings, parks and reserves and the Town Belt) were valued at fair value as at 30 June 2005 by independent registered valuers. The Council has elected to use the fair value of other restricted assets at 30 June 2005 as the deemed cost of the assets. These assets are no longer revalued. Subsequent additions have been recorded at cost.

Infrastructure assets

Infrastructure assets (roading network, water, waste and drainage reticulation assets) are valued at optimised depreciated replacement cost on a three-year cycle by independent registered valuers. Infrastructure valuations are based on current quotes from actual suppliers. As such, they include ancillary costs such as breaking through seal, traffic control and rehabilitation. Between valuations, expenditure on asset improvements is capitalised at cost.

Infrastructure land (excluding land under roads) is valued at fair value on a three-year cycle.

Land under roads, which represents the corridor of land directly under and adjacent to the Council’s roading network, was valued as at 30 June 2005 at the average value of surrounding adjacent land discounted by 50% to reflect its restricted nature. The Council elected to use the fair value of land under roads at 30 June 2005 as the deemed cost of the asset. Land under roads is no longer revalued. Subsequent additions have been recorded at cost.

The service concession asset class consists of the Moa Point, Western (Karori) and Carey’s Gulley waste water treatment plants which are owned by the Council but operated by Veolia Water under agreement. The assets are valued consistently with waste infrastructure network assets.

The carrying values of revalued property, plant and equipment are reviewed at the end of each reporting period to ensure that those values are not materially different to fair value.

Revaluations

The result of any revaluation of the Council’s property, plant and equipment is recognised within other comprehensive revenue and expense and taken to the asset revaluation reserve. Where this results in a debit balance in the reserve for a class of property, plant and equipment, the balance is included in the surplus or deficit. Any subsequent increase on revaluation that offsets a previous decrease in value recognised within surplus or deficit will be recognised firstly, within surplus or deficit up to the amount previously expensed, with any remaining increase recognised within other comprehensive revenue and expense and in the revaluation reserve for that class of property, plant and equipment.

Accumulated depreciation at the revaluation date is eliminated so that the carrying amount after revaluation equals the revalued amount.

While assumptions are used in all revaluations, the most significant of these are in infrastructure. For example where stormwater, wastewater and water supply pipes are underground, the physical deterioration and condition of assets are not visible and must therefore be estimated. Any revaluation risk is minimised by performing a combination of physical inspections and condition modelling assessments.

Impairment

The Council’s assets are defined as cash generating if the primary purpose of the asset is to provide a commercial return. Non-cash generating assets are assets other than cash generating assets.

The carrying amounts of cash generating property, plant and equipment assets are reviewed at least annually to determine if there is any indication of impairment. Where an asset’s, or class of assets’, recoverable amount is less than its carrying amount it will be reported at its recoverable amount and an impairment loss will be recognised. The recoverable amount is the higher of an item’s fair value less costs to sell and value in use. Losses resulting from impairment are reported within surplus or deficit, unless the asset is carried at a revalued amount in which case any impairment loss is treated as a revaluation decrease and recorded within other comprehensive revenue and expense.

The carrying amounts of non-cash generating property, plant and equipment assets are reviewed at least annually to determine if there is any indication of impairment. Where an asset’s, or class of assets’, recoverable service amount is less than its carrying amount it will be reported at its recoverable service amount and an impairment loss will be recognised. The recoverable service amount is the higher of an item’s fair value less costs to sell and value in use. A non-cash generating asset’s value in use is the present value of the asset’s remaining service potential. Losses resulting from impairment are reported within surplus or deficit, unless the asset is carried at a revalued amount in which case any impairment loss is treated as a revaluation decrease and recorded within other comprehensive revenue and expense.

Disposal

Gains and losses arising from the disposal of property, plant and equipment are recognised within surplus or deficit in the period in which the transaction occurs. Any balance attributable to the disposed asset in the asset revaluation reserve is transferred to retained earnings.

Work in progress

The cost of projects within work in progress is transferred to the relevant asset class when the project is completed and then depreciated.

Depreciation

Depreciation is provided on all property, plant and equipment, with certain exceptions. The exceptions are land, restricted assets other than buildings, and assets under construction (work in progress). Depreciation is calculated on a straight-line basis, to allocate the cost or value of the asset (less any assessed residual value) over its estimated useful life. The estimated useful lives and depreciation rate ranges of the major classes of property, plant and equipment are as follows:

Land | unlimited | not depreciated
Buildings | 1 to 100 years | 1% to 100%
Civic Centre complex | 10 to 100 years | 1% to 10%
Plant and equipment | 3 to 100 years | 1% to 33.3%
Library collections | 3 to 11 years | 9.1% to 33.3%
Restricted assets (excluding buildings) | unlimited | not depreciated

Infrastructure assets:

Land (including land under roads)

unlimited
not depreciated

Roading:

Formation/earthworks

unlimited
not depreciated

Pavement

13 to 40 years
2.5% to 7.7%

Traffic islands

80 years
1.25%

Bridges and tunnels

3 to 150 years
0.67% to 33.3%

Drainage

15 to 120 years
0.83% to 6.67%

Retaining walls

30 to 100 years
1% to 3.33%

Pedestrian walkway

10 to 50 years
2% to 10%

Pedestrian furniture

8 to 25 years
4% to 12.5%

Barriers

10 to 110 years
0.91% to 10%

Lighting

10 to 50 years
2% to 10%

Cycleway network

25 to 45 years
2.2% to 4%

Parking equipment

8 to 10 years
10% to 12.5%

Passenger transport facilities

25 years
4%

Traffic infrastructure

3 to 30 years
3.33% to 33.3%

Drainage, waste and water:

Pipework

40 to 110 years
0.91% to 2.5%

Fittings

7 to 100 years
1% to 14.29%

Water pump stations

10 to 100 years
1% to 10%

Water reservoirs

40 to 100 years
1% to 2.5%

Equipment

25 years
4%

Sewer pump stations

20 to 80 years
1.25% to 5%

Tunnels

150 years
0.67%

Treatment plants

3 to 100 years
1% to 33.3%

The landfill post closure asset is depreciated over the life of the landfill based on the capacity of the landfill.

Variation in the range of lives for infrastructural assets is due to these assets being managed and depreciated by individual component rather than as a whole asset.

Intangible assets

Intangible assets predominantly comprise computer software and carbon credits. They are recorded at cost less any subsequent amortisation and impairment losses.

Computer software has a finite economic life and amortisation is charged to surplus or deficit on a straight-line basis over the estimated useful life of the asset. Typically, the estimated useful lives and depreciation rate range of these assets are as follows:

Computer software
1 to 7 years
14.29% to 100%

Carbon credits comprise either allocations of emission allowances granted by the Government related to forestry assets or units purchased in the market to cover liabilities associated with landfill operations. Carbon credits are recognised at cost at the date of allocation or purchase.

Gains and losses arising from disposal of intangible assets are recognised within surplus or deficit in the period in which the transaction occurs. Intangible assets are reviewed at least annually to determine if there is any indication of impairment. Where an intangible asset’s recoverable amount is less than its carrying amount, it will be reported at its recoverable amount and an impairment loss will be recognised. Losses resulting from impairment are reported within surplus or deficit.

Research and Development

Research costs are expensed as incurred. Development expenditure on individual projects is capitalised and recognised as an asset when it meets the definition and criteria for capitalisation as an asset and it is probable that the Council will receive future economic benefits from the asset. Assets which have finite lives are stated at cost less accumulated amortisation and are amortised on a straight-line basis over their useful lives.

Leases

Operating leases as lessee

Leases where the lessor retains substantially all the risks and rewards of ownership of the leased items are classified as operating leases. Payments made under operating leases are recognised within surplus or deficit on a straight-line basis over the term of the lease. Lease incentives received are recognised within surplus or deficit over the term of the lease as they form an integral part of the total lease payment.

Operating leases as lessor

The Council leases investment properties and a portion of land and buildings. Rental revenue is recognised on a straight-line basis over the lease term.

Finance leases

Finance leases transfer to the Council (as lessee) substantially all the risks and rewards of ownership of the leased asset. Initial recognition of a finance lease results in an asset and liability being recognised at amounts equal to the lower of the fair value of the leased property or the present value of the minimum lease payments.

The finance charge is released to surplus or deficit over the lease period and the capitalised values are amortised over the shorter of the lease term and the useful life of the leased item.

Employee Benefit Liabilities

A provision for employee benefit liabilities (holiday leave, long service leave and retirement gratuities) is recognised as a liability when benefits are earned but not paid.

Holiday leave

Holiday leave includes: annual leave, long service leave (qualified for), statutory time off in lieu and ordinary time off in lieu. Annual leave is calculated on an actual entitlement basis in accordance with section 21(2) of the Holidays Act 2003.

Retirement gratuities

Retirement gratuities are calculated on an actuarial basis based on the likely future entitlements accruing to employees, after taking into account years of service, years to entitlement, the likelihood that employees will reach the point of entitlement, and other contractual entitlements information.

Other contractual entitlements

Other contractual entitlements include termination benefits, which are recognised within surplus or deficit only when there is a demonstrable commitment to either terminate employment prior to normal retirement date or to provide such benefits as a result of an offer to encourage voluntary redundancy. Termination benefits settled within 12 months are reported at the amount expected to be paid, otherwise they are reported as the present value of the estimated future cash outflows.

Provisions

Provisions are recognised for future liabilities of uncertain timing or amount when there is a present obligation as a result of a past event, it is probable that expenditure will be required to settle the obligation and a reliable estimate of the obligation can be made. Provisions are measured at the expenditure expected to be required to settle the obligation. Liabilities and provisions to be settled beyond 12 months are recorded at their present value.

Landfill post-closure costs

The Council, as operator of the Southern Landfill, has a legal obligation to apply for resource consents when the landfill or landfill stages reach the end of their operating life and are to be closed. These resource consents will set out the closure requirements and the requirements for ongoing maintenance and monitoring services at the landfill site after closure. A provision for post-closure costs is recognised as a liability when the obligation for post-closure arises, which is when each stage of the landfill is commissioned and refuse begins to accumulate.

The provision is measured based on the present value of future cash flows expected to be incurred, taking into account future events including known changes to legal requirements and known improvements in technology. The provision includes all costs associated with landfill post-closure including final cover application and vegetation; incremental drainage control features; completing facilities for leachate collection and monitoring; completing facilities for water quality monitoring; completing facilities for monitoring and recovery of gas.

Amounts provided for landfill post-closure are capitalised to the landfill asset. The capitalised landfill asset is depreciated over the life of the landfill based on the capacity used.

The Council has a 21.5% joint venture interest in the Spicer Valley landfill. The Council’s provision for landfill post-closure costs includes the Council’s proportionate share of the Spicer Valley landfill provision for post-closure costs.

ACC partnership programme

The Council is an Accredited Employer under the ACC Partnership Programme. As such the Council accepts the management and financial responsibility of our employee work-related injuries. From 1 April 2009 the Council changed its agreement with ACC from Full Self Cover (FSC) to Partnership Discount Plan (PDP). Under the PDP option, the Council is responsible for managing work related injury claims for a two-year period only and transfer ongoing claims to ACC at the end of the two-year claim management period with no further liability. Under the ACC Partnership Programme the Council is effectively providing accident insurance to employees and this is accounted for as an insurance contract. The value of this liability represents the expected future payments in relation to work-related injuries occurring up to the end of the reporting period for which the Council has responsibility under the terms of the Partnership Programme.

Financial guarantee contracts

A financial guarantee contract is a contract that requires the Council to make specified payments to reimburse the contract holder for a loss it incurs because a specified debtor fails to make payment when due.

Financial guarantee contracts are initially recognised at fair value. The Council measures the fair value of a financial guarantee by determining the probability of the guarantee being called by the holder. The probability factor is then applied to the principal and the outcome discounted to present value.

Financial guarantees are subsequently measured at the higher of the Council’s best estimate of the obligation or the amount initially recognised less any amortisation.

Net Assets/Equity

Net assets or equity is the community’s interest in the Council and is measured as the difference between total assets and total liabilities. Net assets or equity is disaggregated and classified into a number of components to enable clearer identification of the specified uses of equity within the Council.

The components of net assets or equity are accumulated funds and retained earnings, revaluation reserves, a hedging reserve, a fair value through other comprehensive revenue and expense reserve and restricted funds (special funds, reserve funds, trusts and bequests).

Restricted funds are those reserves that are subject to specific conditions of use, whether under statute or accepted as binding by the Council, and that may not be revised without reference to the Courts or third parties. Transfers from these reserves may be made only for specified purposes or when certain specified conditions are met.

Prospective Statement of Cash Flows

Cash and cash equivalents for the purposes of the cash flow statement comprises bank balances, cash on hand and short term deposits with a maturity of three months or less. The prospective statement of cash flows has been prepared using the direct approach subject to the netting of certain cash flows. Cash flows in respect of investments and borrowings that have been rolled-over under arranged finance facilities have been netted in order to provide more meaningful disclosures.

Operating activities include cash received from all non-financial revenue sources of the Council and record the cash payments made for the supply of goods and services. Investing activities relate to the acquisition and disposal of assets and investment revenue. Financing activities relate to activities that change the equity and debt capital structure of the Council and financing costs.

Related parties

Related parties arise where one entity has the ability to affect the financial and operating policies of another through the presence of control or significant influence. Related parties include members of the Group and key management personnel. Key management personnel include the Mayor and Councillors as directors, the Chief Executive and all members of the Executive Leadership Team being key advisors to the directors and Chief Executive.

The Mayor and Councillors are considered directors as they occupy the position of a member of the governing body of the Council reporting entity. Directors’ remuneration comprises any money, consideration or benefit received or receivable or otherwise made available, directly or indirectly, to a director during the reporting period. Directors’ remuneration does not include reimbursement of authorised work expenses or the provision of work-related equipment such as cellphones and laptops.

Cost allocation

The Council has derived the cost of service for each significant activity (as reported within the Statements of Service Performance). Direct costs are expensed directly to the activity. Indirect costs relate to the overall costs of running the organisation and include staff time, office space and information technology costs. These indirect costs are allocated as overheads across all activities.

Comparatives

To ensure consistency with the current year, certain comparative information has been reclassified where appropriate. This has occurred:

where classifications have changed between periods;

where the Council has made additional disclosure in the current year, and where a greater degree of disaggregation of prior year amounts and balances is therefore required; and

where there has been a change of accounting policy.

Public Benefit Entity Financial Reporting Standard 42 Prospective Financial Statements (PBE FRS 42)

The Council has complied with PBE FRS 42 in the preparation of these prospective financial statements. In accordance with PBE FRS 42, the following information is provided:

(i) Description of the nature of the entity’s current operation and its principal activities

The Council is a territorial local authority, as defined in the Local Government Act 2002. The Council’s principal activities are outlined within this Annual Plan.

(ii) Purpose for which the prospective financial statements are prepared

It is a requirement of the Local Government Act 2002 to present prospective financial statements that span 1 year and include them within the Annual Plan. This provides an opportunity for ratepayers and residents to review the projected financial results and position of the Council. Prospective financial statements are revised annually to reflect updated assumptions and costs.

(iii) Bases for assumptions, risks and uncertainties

The financial information has been prepared on the basis of best estimate assumptions as the future events which the Council expects to take place. The Council has considered factors that may lead to a material difference between information in the prospective financial statements and actual results. These factors, and the assumptions made in relation to the sources of uncertainty and potential effect, are outlined within this Annual Plan.

(iv) Cautionary Note

The financial information is prospective. Actual results are likely to vary from the information presented, and the variations may be material.

(v) Other Disclosures

The prospective financial statements were authorised for issue on 7 May 2014 by Wellington City Council. The Council is responsible for the prospective financial statements presented, including the assumptions underlying prospective financial statements and all other disclosures. The Annual Plan is prospective and as such contains no actual operating results.

26 Business and Economic Research Limited.

Appendices

Rates Remission Policy

Fees and charges

Waterfront Development Plan

Council-controlled organisations

Council outcome indicators

Contact details: Mayor and Councillors

Rates Remission Policy

(Note: the Rates Remission Policy was adopted by Council as part of the 2012-22 Long-term Plan and amended as part of the 2014/15 Annual Plan)

1. Introduction

2. Circumstances Where A Remission May Apply

3. Applying For A Rates Remission

4. Delegation

5. Rates Penalty Remission

6. Non-Rateable Land

7. Remission Of Rates On Māori Freehold Land

(Note: the Rates Remission Policy was adopted by Council as part of the 2012-22 Long-term Plan and amended as part of the 2014/15 Annual Plan)

1. Introduction

In accordance with Section 85 of the Local Government (Rating) Act, 2002:

i. A local authority may remit all or part of the rates on a rating unit (including penalties for unpaid rates) if –

a. the local authority has adopted a remissions policy under section 102 of the Local Government Act 2002, and
b. the local authority is satisfied that the conditions and criteria in the policy are met.

ii. The local authority must give notice to the ratepayer identifying the remitted rates.

2. Circumstances Where A Remission May Apply

2.1 RURAL OPEN SPACE REMISSION

Remission statement

The Council may grant a 50 percent remission on land classified as rural under the District Plan where the rating unit is rated under the Base differential and used principally for farming or conservation purposes.

Policy objective

To provide rates relief for rural, farmland and open spaces.

Conditions and criteria

Land used principally for farming or conservation purposes

A rates remission of 50 percent of the Base general rate will be granted to rating units that are classified as rural under the District Plan and used principally for farming or conservation purposes. Under this policy ‘principally for farming or conservation purposes’ is defined as where:

a. The rating unit (or property) exceeds 30 hectares in area, and
b. 50 percent or more of the rateable capital value of the property is made up of the land value, and
c. the principal use of the land is for conservation, agriculture, horticulture, pastoral or silviculture purposes, or for the keeping of bees, poultry or other livestock excluding commercial dog kennels or catteries.

2.2 REMISSIONS ON LAND USED PRINCIPALLY FOR GAMES OR SPORT

Remission statement

Where the Council considers a rating unit is used principally for games or sport, it will apply a 50 percent remission of general rates where the rating unit:

a. has a club licence under the Sale of Liquor Act 1989, and
b. would otherwise qualify as 50 percent non-rateable under Part 2, Schedule 1, of the Local Government (Rating) Act, and
c. the property is rated at the Base differential.

Policy objective

To reduce the adverse financial impact of the Local Government (Rating) Act 2002 on land used principally for games or sports, occupied by clubs that hold a club liquor licence and no longer qualify as 50 percent non-rateable.

Conditions and criteria

All applications must be received in writing using the Wellington City Council ‘Application for Remission’ form. A remission under this policy will apply for one year only. Applicants must reapply annually. The application for a rate remission must be made prior to the commencement of the rating year (1 July). Successful applications received during a rating year will be applicable from the commencement of the following year. No applications will be backdated. For the avoidance of doubt, this policy specifically excludes chartered clubs and clubs holding permanent charters.

2.3 REMISSION OF TARGETED RATES ON PROPERTY UNDER DEVELOPMENT OR EARTHQUAKE STRENGTHENING

Remission statement

The Council may remit part or all of the commercial sector and downtown targeted rates on land classified under the Council’s commercial, industrial and business differential as defined within our Funding Impact Statement Rating Mechanisms, where the property is deemed to be ‘not fit for purpose’ due to the property being under development or due to the existing building being earthquake strengthened.

The Council may remit part or all of the Base sector targeted rate on land classified under the Council’s Base differential (including residential) as defined within our Funding Impact Statement Rating Mechanisms, where the property is deemed to be ‘not fit for purpose’ due to earthquake strengthening.

Policy objective

To provide rates relief for property temporarily not fit for purpose due to the property undergoing development or earthquake strengthening and therefore not receiving the benefits derived by contributing to the commercial, residential or downtown targeted rates.

Conditions and criteria

To enable the remission statement above, ‘not fit for purpose’ is defined in this policy as where:

a. the property (rating unit) will not hold sufficient consents to permit occupation and,
b. the property (rating unit) will not be used for any purpose, apart from the construction of buildings, premises or associated works, or earthquake strengthening works and
c. the property (rating unit) will not generate any revenue stream

The above criteria apply to, and must be met by, an entire rating unit as identified in the Council’s rating information database (RID) and apply only for the period the building is not ‘fit for purpose’.

2.4 REMISSION OF VOLUNTARY RESIDENTIAL METERED WATER RATES

Remission statement

The Council may grant a remission on a voluntary residential metered water rate where excess water consumption has occurred due to a leak beyond the point of supply on the ratepayer’s property. The excess water consumption may only be remitted to the level of the current Greater Wellington Regional Council bulk water rate.

Policy objective

The objective of this remission policy is to provide a measure of rates relief where a water leak has been detected on the ratepayer’s residential property with a voluntary water meter, and prompt remedial action to repair the leak has been undertaken. However the ratepayer is responsible for water leaks, the pipes and the usage of water on their property in accordance with the Water Services Bylaw.

Conditions and criteria

A remission of the residential metered water rate may be granted for excess water consumption where the leak is the rate payer’s responsibility (beyond the point of supply). Excess water consumption will be calculated as the difference between actual metered usage on the latest reading and the average daily metered usage over the last four readings. The full water rate will be charged on the average daily usage over the last four readings and the excess water consumption (as calculated above) will be charged at the current Greater Wellington Regional Council bulk water rate. This remission should only be applied for if:

i. the leak occurred on a voluntary residential metered water property; and
ii. excess water consumption has occurred through a broken or leaking pipe; and
iii. evidence is provided that the fault has been remedied within a reasonable time period and prior to the application for a remission

In the advent of a recurrence of a water leak, the Council would require the property owner to get a condition assessment of the pipes on the property prior to any decisions to remit a subsequent remission.

2.5 SPECIAL CIRCUMSTANCES REMISSION

Remission statement

It is recognised that not all situations in which it may be appropriate for the Council to remit rates will necessarily be known in advance and/or provided for in specific rating policies. In circumstances where the rating policy is deemed by the Council to unfairly disadvantage an individual ratepayer, the Council may grant a one-off remission of part or all of the rates assessed for a rating unit (or property) on the condition that the remission does not set a precedent that unfairly disadvantages other ratepayers.

Policy objective

To provide for the possibility of a rates remission in circumstances that have not been specifically addressed in other parts of the Council’s Rates Remission and Postponement Policies.

Conditions and criteria

The Council may remit part of the general rate assessed in relation to particular rating unit where:

i. the rates on that rating unit are disproportionate to those levied in respect of comparable rating units, or
ii. the rating policy is determined by the Council to unfairly disadvantage an individual ratepayer.

The approval of the remission must not set a precedent that unfairly disadvantages other ratepayers.

2.6 REMISSION OF RATES FOR BUILDINGS REMOVED FROM THE EARTHQUAKE PRONE BUILDINGS LIST

Remission statement

The Council may grant a remission on a property’s rates where the property was on the Council’s Earthquake Prone Building List and the owner has taken action to remove that building from the list either by strengthening that building to beyond 33 percent of the New Building Standard (NBS) or by removing the building from the site. The building owner may qualify for this remission for a period of 3 years after the removal of the building from the earthquake prone building list. If the building is listed in the District Plan Heritage List then the building owner may qualify for this remission for a period of 5 years after the removal of the building from the earthquake prone building list.

The building owner must apply for this remission within 12 months of the removal of the building from the earthquake prone building list (by issuance of a code of compliance for work performed).

For strengthened buildings, the remission shall equate to the increased rates (general rate, downtown targeted rate, commercial industrial and business sector or base sector targeted rates, stormwater network and sewerage rates) payable due to the valuation uplift that may arise from seismic strengthening works.

For removed buildings, the remission shall equate to 10 percent of the rates (general rate, downtown targeted rate, commercial industrial and business sector or base sector targeted rates, stormwater network and sewerage rates) payable on the property.

Policy objective

The objective of this remission policy is to minimise the rates impact of valuation increases arising for property owners who have taken positive action to address the structural safety of their earthquake-prone buildings.

Conditions and criteria

A remission of rates may apply under the following conditions and criteria:

i. the building must have been on the Earthquake Prone Buildings list27

ii. the building owner must have taken action to remove their building from this list either through seismic strengthening or building removal
iii. the remission must be applied for within 12 months of the building being removed from the Earthquake Prone Buildings list and will relate to the following three rating years only (the property owner does not need to reapply in years 2 and 3). If the building is listed in the District Plan Heritage List then the building owner may apply for this remssion for a period of 5 years after the removal of the building from the earthquake prone building list.
iv. the remission will apply to the general rate, downtown targeted rate, commercial industrial and business sector or base sector targeted rates, stormwater network and sewerage rates (hereinafter referred to as “the rates”)
v. the remission will not be available retrospectively for buildings already removed from the list prior to this policy being implemented
vi. the remission is only available to the property owner who has taken action to remedy their building. It will not be available to a third-party purchaser of the building even if a sale took place within three years (or 5 years for a building listed on the Heritage List of the District Plan) of the building being removed from the Earthquake Prone Buildings list
vii. for earthquake-prone buildings that have been seismically strengthened to > 33 percent NBS the following conditions and calculations will apply:

a. the remission application will be accepted after the code of compliance has been issued for the seismic strengthening project
b. the remission will be calculated as the additional rates payable due to the valuation uplift that may arise from the seismic strengthening project28

c. if there has been no property valuation uplift as a result of seismic strengthening work then no remission will be calculated
d. the Council’s nominal annual rates increase will still apply

viii. for earthquake prone buildings that have been removed from the site the following conditions and calculations will apply:

a. the remission application will be accepted after evidence of the building removal has been provided to Council and the building has been removed from the earthquake prone building list
b. the remission will be calculated as 10 percent of the rates payable on the property for each of the three years following the acceptance of the remission application

Valuation changes

Wellington City Council is on a three-yearly valuation cycle for all properties in the city. City-wide valuations are performed by Quotable Value New Zealand Limited in September and are used to calculate rates from the next rating year commencing 1 July. The next city-wide valuation will occur in September 2015 and will be used to calculate rates for the rating year commencing 1 July 2016.

Properties are also subject to ‘maintenance valuation adjustments’ at any time between the valuation cycles when there has been a measurable value change, usually triggered by improvement works.

Building owners will be notified when the capital value of their property has changed. Rates will be calculated using the new capital value from the next rating year commencing 1 July.

Application

This remission may be applied for at anytime during the year. If approved by Council officers the remission will take effect either from the next rating year (1 July), or will be backdated to take effect from the start of the current rating year at the nomination of the property owner and agreement of Council officers. The remission will cease after three years from the agreed effective start date or after 5 years in the case of a building listed in the District Plan Heritage List.

3. Applying For A Rates Remission

All applications must be in writing and set out the reasons for the request using the Wellington City Council ‘Application for Remission’ form.

Each remission application is applicable to a single rating year. Applications must be received prior to the commencement of the rating year the remission is being applied for (1 July), with the exception of the Special Circumstances Remission, Voluntary Residential Metered Water Rates Remission and the Remission of rates for buildings removed from the earthquake prone building list which may be received after the start of a rating year. No applications will be backdated beyond the current rating year.

All applications for a remission on a rating unit that has previously received a remission or remissions, must be re-submitted annually for consideration of further remissions prior to the commencement of the rating year (1 July).

The determination of eligibility and approval of any remission is at the absolute discretion of the Wellington City Council or its delegated officer.

Applications made for a remission will be considered on their own merits and any previous decisions of the Council will not be regarded as creating a precedent or expectations.

4. Delegation

Decisions relating to the remission of rates are delegated to the Chief Executive, the Chief Financial Officer and the Manager Financial Accounting.

5. Rates Penalty Remission

Policy objective

To enable the Council to act fairly and reasonably when rates have not been received by the due date and a penalty has been applied.

Conditions and criteria

Upon receipt of an application from the ratepayer, or identified by the Council, the Council may remit all or part of a penalty where it considers that it is fair and equitable to do so.

Matters that will be taken into consideration by the Council include the following:

a. the ratepayer’s payment history, and
b. the impact on the ratepayer of an extraordinary event, and
c. the payment of the full amount of rates due, or
d. the ratepayer entering into an agreement with the Council for the payment of rates within a reasonable timeframe.

The Council reserves the right to impose conditions on the remission of penalties.

APPLYING FOR A RATES PENALTY REMISSION

A Rates Penalty Remission application must be in writing, setting out the reasons for the request with enough information and proof for officers to evaluate the request. No special remission form is required. The written request will be accepted by post, fax or email (rates@wcc.govt.nz).

DELEGATION FOR A RATES PENALTY REMISSION

Decisions relating to the remission of penalties on rates are delegated to the Chief Executive, the Chief Financial Officer and the Manager Financial Accounting.

6. Non-Rateable Land

In addition to rates remissions, some types of property are not rateable or are partly non-rateable under Schedule 1 or Schedule 2 of the Local Government Rating Act (2002). For details of non rateable property uses refer to this legislation on the New Zealand Legislation website.

7. Remission Of Rates On Māori Freehold Land

The Council’s objectives in relation to rates remission and postponement apply equally to Māori freehold land. Therefore the rates remission and postponement policies applicable to Māori freehold land are identical to those that apply to non-Māori freehold land.

27 As maintained by Wellington City Council.

28 Property valuation adjustments will occur either as part of the Council’s three-yearly city wide revaluation cycle, or through ‘maintenance valuation adjustments’ that occur in between cycles where improvement works have taken place resulting in a measurable value change. Building owners will be notified of any valuation change in both circumstances. Under both circumstances rates are not impacted until the next rating year commencing 1 July. Officers reserve the right to use their discretion in determining valuation changes that may arise from seismic strengthening under this policy.

Fees and charges

Our Revenue and Financing Policy guides our decisions on how to fund Council services. Under the policy, we take into account who benefits from a service (individuals, parts of the community, or the community as a whole) to help us determine how the service should be funded. The policy sets targets for each Council activity, determining what proportion should be funded from each of user charges, general rates, targeted rates and other sources of income.

New fees will be implemented as of 1 July 2014 and are inclusive of GST unless otherwise stated. For more information see Wellington.govt.nz

Note that the following list of fees and charges is not a complete list of all fees and charges levied by the Council. It consists of those fees and charges subject to consultation.

Trade Waste

We are increasing our fees for trade waste, required to maintain policy compliance. The Wellington Trade Waste Bylaw 2004 expects full cost recovery from trade waste customers and the Council is moving towards this in a staged approach as part of its Long-term Plan. The changes are set out below.

Annual Licence For Registered Premises | Current Fee | 2014/15 Fee
Conveyance & Transport of Trade Waste |  |
Volume |  |
Up to 100m³/day | $0.26/m³ | $0.27/m³
Between 100m³/day and 7000m³/day | $0.12/m³ | $0.13/m³
Above 7000m³/day | $0.83/m³ | $0.85/m³
B.O.D |  |
Up to 3150kg/day | $0.28/kg | $0.29/m³
Above 3150kg/day | $0.63/kg | $0.64/m³
Suspended Solids |  |
Up to 1575kg/day | $0.27/kg | $0.28/m³
Above 1575kg/day | $0.51/kg | $0.52/m³

Waterfront Development Plan

(Note: Council approved a three year Waterfront Development Plan as part of the 2012-22 Long-term Plan. This 2014/15 plan updates year three of that plan)

What’s included here

Why it’s important

Contribution to community outcomes

What we’ll provide – our levels of service

How we’ll measure our performance

How we manage our assets that support this activity

(Note: Council approved a three year Waterfront Development Plan as part of the 2012-22 Long-term Plan. This 2014/15 plan updates year three of that plan)

What’s included here

Our aim is to develop Wellington’s inner city waterfront in accordance with the fundamental principles set down in the Wellington Waterfront Framework (2001). The waterfront is not only a working wharf but is also a public recreation destination for locals and visitors to the city. Our role, therefore, is to deliver a work programme that will ensure the waterfront experience continues to be a special combination of activities, history, views and architecture to delight, challenge, entertain and educate everyone.

The Waterfront Development Plan outlines the work programme to implement the objectives of the Framework over a three-year period. From 1 July 2014 the implementation of the plan will be undertaken by a Council business unit. The plan is reviewed on an annual basis. The plan has been updated this year to cover activities and expenditure within the final year of its projected three-year programme. The most significant change is with regard to the timing of receipts from the development of North Kumutoto. This project has been delayed and receipts are now forecast to be received over the two financial years 2015/16 and 2016/17.

Why it’s important

Wellington’s waterfront is one of the most easily recognised and frequently photographed parts of our city, and is much changed from the bustling port of old. The waterfront is a special place that welcomes all people to live, work and play in the beautiful and inspiring spaces and architecture that connect our city to the sea and protect our heritage for future generations.

Over recent decades, Wellington City Council, together with many interested Wellingtonians, has developed a vision for the waterfront and its future. In 2001 this vision was laid out in the publication of the Wellington Waterfront Framework. This document sets down the fundamental principles for establishing development work programmes on the waterfront. The phasing of the work has been decided based on the following principles:

heritage buildings should be restored and reused as a priority

timing of commercial development will be impacted by market conditions

income should be generated upfront where possible to minimise the impact on ratepayers

public confidence in the waterfront development must be maintained.

The Framework requires transparency and a willingness to engage with the public about how the waterfront is developed. A balance must be set between making good progress on the waterfront and providing the public with sufficient opportunity to be involved. As such, public submissions are sought when detailed or concept designs are proposed.

Contribution to community outcomes

We contribute to the following goals of Wellington Towards 2040: Smart Capital:

People-Centred City: The waterfront is one of Wellington’s premiere destinations for work, recreation and events.

Connected City: Wellington’s waterfront is acknowledged widely as a gathering point for friends, colleagues and family, and now, with free wi-fi access across the entire space, as a place to connect globally.

Eco-city: we are helping develop Wellington as an eco-city by ensuring that all development activity on the waterfront is sustainable and strives for the highest possible environmental ratings.

Dynamic Central City: The waterfront contributes to Wellington’s downtown area in numerous ways. It provides cultural, recreational, heritage and maritime activity. Opportunities for commercial and residential development add to the changing face of Wellington’s central business district. By hosting events such as World of Wearable Arts, Round the Bays and other sports events, and festivals like Home Grown and Diwali, the waterfront is promoting Wellington as a vibrant, creative and multi-cultural place.

What we’ll provide – our levels of service

Seven objectives have been set for the waterfront:

the waterfront is locally and internationally recognised for its design

the waterfront is readily accessible to all people

the waterfront is, and is perceived to be, safe at all times

the waterfront is seen as an attractive place that draws Wellingtonians and visitors alike

the waterfront successfully caters for a wide range of events and activities

significant heritage buildings are protected on the waterfront

activities on the waterfront are integrated with those on the harbour.

There are many proposed and on-going projects, all with different complexities, and in some cases, the potential to be interrelated. Some work needs to be done sequentially because of physical requirements to maintain the waterfront experience as much as possible during construction or to coincide with neighbouring development activities. There may sometimes be financial implications that justify undertaking one piece of work before another. Further, sufficient flexibility must be built in to respond to good ideas or proposals in a timely manner, should they arise.

Under the Wellington Waterfront Framework, Wellington’s waterfront is divided into five precincts linked by the waterfront promenade, each with its own distinctive style and personality:

Waitangi

Taranaki Street Wharf

Frank Kitts Park

Queens Wharf

Kumutoto.

The following key projects are planned for the next year.

The Promenade: Development of the promenade as the spine that connects the waterfront is on-going. A particular focus over the next year will be on the North Kumutoto connection from the Meridian building through to Shed 21 and the railway station. We will continue to address the pedestrian/cycling interface through enhanced signage and other improvements undertaken in consultation with various stakeholder groups.

Wharf pile maintenance: The third stage of the waterfront-wide pile repair and refurbishment programme was planned to take place in 2014/15, but has now been scheduled to be completed in 2016/17.

| 2014/15
Projected public space development contribution ($000): | $0

Waitangi Precinct: The redevelopment of the Overseas Passenger Terminal and public space will be all but complete as we enter the 2014/15 financial year. Construction began in 2012 and is expected to be completed in mid 2014. Work will continue on the feasibility of the proposed transition building adjacent to Te Papa.

| 2014/15
Projected public space development contribution ($000): | $125

Taranaki Street Wharf Precinct: This area is essentially complete.

| 2014/15
Projected public space development contribution ($000): | $0

Frank Kitts Park Precinct: WWL will continue to oversee the design development of the whole of Frank Kitts Park and work with the Wellington Chinese Garden Society regarding its fundraising initiatives. WWL will secure resource consent for the partial redevelopment of the park and implement its development in stages. The children’s playground, now 15 years old, is in urgent need of upgrade and repair. This work was started in 2013/14 and will be completed in 2014/15. The playground design will be informed by input from the public.

| 2014/15
Projected public space development contribution ($000): | $800

Queens Wharf Precinct: Masterplanning for this area was completed and presented to the Council in 2011. Options will continue to be explored with respect to opportunities around the Outer T of Queens Wharf. Development of an adventure activities area within the Shed 6 Harbour Basin that commenced in 2013/14 will continue through 2014/15.

| 2014/15
Projected public space development contribution ($000): | $130

Kumutoto Precinct: Work will continue on the development opportunities for site 10 which is at an advanced stage and also site 9. However, with the delay in commencing development on these sites, the timing of upgrading the public space in the north Kumutoto precinct has been budgeted now for 2015/16 with wider works occurring in the subsequent year. This will be subject to change as plans for these sites develop.

| 2014/15
Projected public space development contribution ($000): | $0

Other capital renewals: An ongoing programme of repairs and maintenance, capital expenditure and renewals has been identified in the company’s asset management plan.

| 2014/15
Projected public space development contribution ($000): | $909

How we’ll measure our performance

The overall success of the waterfront will be measured by the achievement of the principles and objectives outlined in the Waterfront Framework.

Design outcomes will continue to be monitored by the Council’s Technical Advisory Group, an independent provider of design advice. Drawing on the architecture, landscape architecture and urban design expertise of its members, they ensure that the Framework principles have been applied consistently in all the design of buildings and public space.

The achievement of milestones in line with this plan and residents’ use and perceptions of their experience on the waterfront will continue to be monitored.

Beyond the current Waterfront Development Plan the following activities are proposed:

Frank Kitts Park refurbishment incorporating a Chinese Garden – 2016/17 ($4 million)

Wharf strengthening programme stage 3 – 2016/17 ($2.035 million)

Completion of public space enhancements in north Kumutoto – 2016/17 ($5 million)

Ongoing maintenance, renewals and management of leases ($2.358 million over six years).

How we manage our assets that support this activity

The company maintains an asset management plan (2011) is maintained for the Waterfront. It complies with all legislation and regulatory requirements, including resource consents. Waterfront assets are maintained in a condition that allows the buildings and public space to meet visitor and stakeholder expectations. Active engagement is maintained with other commercial operators on waterfront sites to ensure that the issues are resolved quickly and effectively, and that the waterfront remains a safe and welcoming place for everyone.

| 2014/15
Waterfront Operating costs ($000) | 6,288
Public Space Developments ($000) | 1,964
| 2014/15
Waterfront Operating revenues ($000) | 3,281
Proceeds Commercial Developments ($000) | 2,050
Loan Financing Balance | 2014/15
Wharf repiling (cumulative) ($000) | 5,60829
Public Space (cumulative) ($000) | 9,663

29 Excludes the funding of $2.9m realated to the strengthening of the wahrf for the Shed 6 development as this was excluded from the calculation of the loan balance.

Council-controlled organisations

Wellington Regional Stadium Trust

Partnership Wellington Trust (trading as Positively Wellington Tourism)

Wellington Museums Trust

Wellington Venues Limited (Trading as Positively Wellington Venues)

Lambton Harbour Management Limited (trading as Wellington Waterfront Limited)

Wellington Cable Car Limited

Capacity Infrastructure Services Limited

Wellington Zoo Trust

Basin Reserve Trust

In order to achieve our objectives for Wellington we have established several companies and trusts. These organisations were set up to independently manage Council facilities, or to provide significant services and undertake developments on behalf of the Wellington community. The following table explains what the organisations do and how their performance is measured.30 At its meeting on 19 December 2013, the Council agreed to changes in the governance arrangements for some of its Council-controlled organisations (CCOs). These are explained under ‘structure’ in the tables below.

Wellington Regional Stadium Trust

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2014/15

All of the trustees are jointly appointed by the Council and Greater Wellington Regional Council (GWRC).

As at 1 June 2014, they are John Shewan (Chair), Councillor Nigel Wilson (GWRC), Steven Fyfe, Sir John Anderson, Liz Dawson, Sue Elliott, Mark McGuinness and Councillor Paul Eagle.

The Chief Executive is Shane Harmon.
The Wellington Regional Stadium Trust owns, operates and maintains the Stadium as a high quality multi purpose sporting and cultural venue. It provides facilities to be used for rugby, cricket and other sports codes, musical and cultural events, and other users including sponsors and event and fixture organisers.  
The Trust:

Operates the Stadium.  

Manages the event programme and seeks opportunities to provide regular quality events.  

Ensures the Stadium is provided to the community for appropriate usage.  

Administers the Trust assets and the Stadium on a prudent commercial basis.

Number of events

45-50

Total revenue

$14.76 million

Event revenue

$5.42 million

Net surplus

$1.19 million

Note: the Wellington Regional Stadium Trust is not formally defined as a Council-controlled organisation. This plan for its activities is presented to recognise the interest that Wellington city ratepayers have in the Trust and its activities.

Partnership Wellington Trust (trading as Positively Wellington Tourism)

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2014/15

All trustees are appointed by the Council.

As at 1 June 2014, they are Howard Greive (Chair), Sarah Gibbs, Councillor Simon Woolf, and Chris Wilkinson.

The Chief Executive is
David Perks.

The activities of Positively Wellington Tourism (PWT) and Positively Wellington Venues will be amalgamated within a single CCO. The activities, performance measures and targets listed in this table will become the responsibility of the amalgamated CCO.
The Partnership Wellington Trust markets and adds value to Wellington to achieve sustainable economic growth for the people of the city.

It acts to enhance the recognition of Wellington as a desirable visitor destination, enhance the profile of city businesses and to promote strategic alliances and private sector partnerships, and maximise the city’s share of regional spending.

It also promotes community focused initiatives, aims to improve the sustainability of Wellington’s commercial sector through its marketing initiatives, and facilitates the coordination of marketing initiatives that are appropriate to its objectives.
The Trust:

Promotes Wellington as a visitor destination in national and international markets.

Markets Wellington as a convention and conference destination.

Provides visitor information services.

Runs initiatives that promote retail growth, including the downtown retail campaign.

Profiles Wellington’s strengths in arts, sport and education attractions, and conducts development of an ongoing events profile for the city.

Facilitates the development of new tourism and event product, and the development of the Visiting Friends and Relatives (VFR) market.

Manages Wellington’s destination profile on the internet.

Conducts research and analysis of the tourism industry.

International direct arrivals to Wellington Airport from Australia

Increase Australian visitor arrivals through Wellington International Airport by 5% over 2013/14 levels

International commercial guest nights 

Increase international commercial guest nights to Wellington relative to 2013/14 by 2%

Domestic commercial guest nights

Increase domestic commercial guest nights in Wellington city by 2% relative to 2013/14

Weekend occupancy in partner hotels

Increase weekend rooms sold in partner hotels by 2% relative to 2013/14

Downtown weekend visitation 

Weekend visitation to downtown Wellington maintained at 2013/14 levels

i-SITE revenue

Maintain i-SITE revenue at 2013/14 levels

Cost effectiveness

Maintain Council’s core funding at 50% or less of Wellington’s marketing activity investment

Visits to WellingtonNZ.com

10% increase over 2013/14 levels

Wellington Museums Trust

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2014/15

All trustees are appointed by the Council.

As at 1 June 2014, they are Quentin Hay (Chair), Councillor Nicola Young, Rachel Farrant, Jackie Lloyd and Jill Wilson.

The Chief Executive is Pat Stuart.
The Wellington Museums Trust was established in 1995 to promote and manage the City Gallery Wellington, the Museum of Wellington City & Sea, the Colonial Cottage, Capital E, the Wellington Cable Car Museum and Carter Observatory. The Trust has a management agreement with the New Zealand Cricket Museum.

The Trust manages and develops the programmes and services, and acquires and manages collections for the benefit of Wellington. It provides advice to the Council for the development of museum and gallery services in Wellington, establishes exhibition programmes and education policies for its facilities, and develops acquisition, deaccession and collection development policies. It liaises with Positively Wellington Tourism to enhance its attraction to Wellington’s visitors.  

Delivers high quality experiences, events and exhibitions at its facilities.

Manages conservation and care for the objects of its collections, and conducts research and development to enhance visitors’ experiences.

Offers quality education experiences to children and young people.

Promotes and protects the heritage of venues.

Develops and operates the Soundhouse Studio.

Works with national and international artists and collectors.

Attendance targets:

City Gallery

140,000

Capital E

80,000

Museum of Wellington

90,000

Colonial Cottage

2,125

Cable Car Museum

220,998

Carter Observatory

50,000

Subsidy per customer (excludes $50,000 for Capital E festival)

$13.99

Carter Observatory subsidy per customer

$7.36 

Percentage of visitors to all trust institutions who rate the quality of their experience as good or very good

90% on average

Percentage of visitors to all Trust institutions are repeat visitors

27% average

Percentage of all residents are aware of Trust institutions

Approximately 86% (across all institutions)

Wellington Venues Limited (Trading as Positively Wellington Venues)

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2014/15

All directors are appointed by the Council.

As at 1 June 2014, they are Chris Parkin (Chair), Councillor Simon Woolf, Mike Egan, Samantha Sharif, Lorraine Witten, Linda Rieper and Daniel Bridges.

The Chief Executive is Glenys Coughlan.

The activities of Positively Wellington Tourism (PWT) and Positively Wellington Venues will be amalgamated within a single CCO. The activities, performance measures and targets listed in this table will become the responsibility of the amalgamated CCO.
Wellington Venues Limited exists to manage and promote Wellington’s major Events venues, including the Michael Fowler Centre, Town Hall, St James Theatre and Opera House as venues, and to help establish Wellington as the premier city for events and conferences.    
Wellington Venues Ltd.:

Manages and operates the Venues and any related Events business

Advocates for the Venue and Event sector for the benefit of the residents of Wellington

Works to achieve greater community access to the Venues’ facilities

Develops and maintains beneficial relationships with other national and international institutions, supports Positively Wellington Tourism, and develops new initiatives in its role as a key provider of event and performance venues.

Venue hire days

Performance days and revenues

Convention and events days and revenues

Maintain appropriate mix of commercial and community hires

Maintain satisfaction ratings of >90%

Ensure standards are maintained through pan-venue asset management

Reduced environmental foot print targets achieved

Maintain or increase from previous year  

Maintain or increase from previous year  

Maintain or increase from previous year    

Lambton Harbour Management Limited (trading as Wellington Waterfront Limited)

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2014/15

The Council is the 100% shareholder in this company and appoints all of the directors.

As at 1 June 2014, they are council officers Kevin Lavery (chair), Derek Fry, Andy Matthews and Greg Orchard.

On 1 April 2014, the external Board of Wellington Waterfront Limited was disestablished.
The company structure is required to be retained to hold the assets of the Waterfront in trust for Council with respect to the Marine and Coastal Area Act 2011.
As at 1 July 2014, Wellington Waterfront Limited will function as a holding company for Waterfront assets.   The day to day operations formerly delivered by WWL have been transferred to Council, with the activities for 2014/15 detailed within the Waterfront Development Plan.

Wellington Cable Car Limited

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2014/15

The Council is the 100% shareholder in this company and appoints all of the directors.  

As at 1 June 2014 they are council officers Anthony Wilson (chair) and Andy Matthews.

The Chief Executive is Simon Fleisher.

On 1 April 2014, the external Board of Wellington Cable Car Limited was disestablished. The activities, performance measures and targets listed in this table will continue to apply.
Wellington Cable Car Limited owns and operates the Cable Car as an efficient, reliable and safe transport service and a uniquely Wellington tourism asset.   It also owns and maintains the overhead wiring system for the trolley bus passenger network which services the city.  
The company:

Maintains the cable cars and associated track, plant, tunnels, bridges and buildings in accordance with best engineering practice, and to meet the certification requirements of the New Zealand Transport Agency.  

Manages the Cable Car passenger service operation.  

Markets the Cable Car.  

Identifies options for enhancing the Cable Car travel and tourism experience.  

Specifies and controls the contract for the inspection, maintenance and repair of the trolley bus overhead wiring system.

Cable Car passenger numbers  

All Cable Car vehicles and associated buildings and equipment are maintained to required safety standards  

Cable Car service reliability  

Percentage of residents who have used the Cable Car in the last 12 months  

Percentage of users who rate the standard and operational reliability of the Cable Car as good or very good

1,005,847

Achieve

Greater than 99%

30%

95%

Capacity Infrastructure Services Limited

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2014/15

Wellington City Council, Hutt City Council, Upper Hutt City Council and Porirua City Council are equal voting shareholders in this Council-controlled trading organisation, and between them appoint all of the directors. The company is overseen by a board of directors made up of four sole Council appointments (one from each council) and four joint appointments. Each council continues to own its respective water, storm water and waste water assets and determines the level and standard of services to be provided to its customers and ratepayers.

As at 1 June 2014, the Councillor appointees are Councillor Sarah Free (Wellington City Council), Councillor Bassett (Hutt City Council), Mayor Nick Leggett (Porirua City Council) and Mayor Wayne Guppy (Upper Hutt City Council). The remaining directors are John Strahl (Chair), Ian Hutchings, and Raveen Jaduram.

The Chief Executive is
Colin Crampton.
The objective of Capacity is to manage the provision of water services (water supply, storm water and wastewater) to the residents and businesses in the areas served by its customers. Capacity’s current customers are Wellington City Council, Hutt City Council, Upper Hutt City Council and Porirua City Council.  
The company’s purpose is to provide high quality, safe and environmentally sustainable services to shareholding councils and other customers with a principal focus on asset management planning and contracted service delivery for the operation, maintenance and on-going development of drinking water, storm water and waste water assets and services.

The company is committed to ensuring all work managed on behalf of customers accords with the highest standards of health and safety for those involved in the work and for the general public. The company will continually seek opportunities to integrate water, storm water and waste water activities within the Wellington region where such integration can deliver least cost, best practice outcomes to the benefit of shareholder councils and other entities.

See the Environment section on page 27 for more information on water, storm water and waste water services.

Provide a reliable water supply, wastewater and storm water service. 

Develop and complete asset management plans  

Deliver budgeted capital expenditure projects for respective councils  

Deliver budgeted operating and maintenance activities for respective councils  

Manage and operate Capacity within its budget  

Comply with relevant standards, legislation and resource consents

Fewer than 4 unplanned supply cuts (pipe bursts) per 1000 connections

Within agreed timeframe

Within agreed timeframes and budget

Within agreed timeframes and budget

Within agreed budget

Achieve full compliance

Wellington Zoo Trust

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2014/15

The Wellington Zoo Trust was established on 1 July 2003 and all of the trustees are appointed by the Council.

As at 1 June 2014, they are Ross Martin (Chair), Frances Russell, Linda Meade, Alan Dixson, and Councillor
Simon Marsh.  
The Wellington Zoo Trust manages the assets and operations of Wellington Zoo for the benefit of the residents of Wellington and visitors to the city. It promotes species conservation, educates the community by building an awareness of animal species, and supports the conservation and educational activities of other organisations.  

Cares for resident animals and manages the animal collection.  

Provides a high-quality visitor experience  

Participates in captive management breeding and breed-for-release programmes.  

Develops and maintains high quality animal exhibits.  

Delivers educational material and learning experiences.  

Contributes to zoological, conservation and facilities management research projects.

Number of visitors  

Conservation Programme Managed Species (% of total collection)

Average WCC subsidy per visitor

Annual fundraising target for Zoo Capital Plan

Average income per visitor (excluding City Council grant)

Ratio of generated Trust income as % of City Council grant

230,11131

>41%

$11.98

25% of spend for the year

$14.25

119%

Basin Reserve Trust

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2014/1532

There are four trustees, of whom two are appointed by the Council and two by Cricket Wellington.

As at 1 June 2014, the two trustees appointed by the Council are Councillor Paul Eagle and Sir John Anderson (Chair). The two trustees appointed by Cricket Wellington Don Neely and John Greenwood. The Chief Executive of Cricket Wellington is Peter Clinton.  
The Basin Reserve Trust manages and operates the Basin Reserve to continue to attract national and international sporting events to Wellington.  
The Trust:

Manages the Basin Reserve for recreational activities and the playing of cricket for the residents of Wellington.  

Contributes to the events programme for Wellington.  

Operates as a successful not-for profit undertaking.  

Preserves and enhances the heritage value of the Basin Reserve.

Number of events

Cricket

10

Other sports

10

Community

2 

Number of event days

Cricket

26

Other sports

10

Community

2

Attendance figures

29,800

30 These targets are based on three year projections in the entities 2013/14 Statement of Intent (SOI). These are subject to change in the entities 2014/15 SOI which will be final on 30 June 2014.

31 This figure has increased from the original Long-term Plan target to reflect the higher than anticipated visitor numbers in previous years. 

32 These figures are provisional pending the release of the domestic and international cricket season schedule in mid-2014.

Council outcome indicators

Governance | Residents who agree that decisions are made in the best interest of the city
Residents’ perceptions that they understand how the Council make decisions
Residents’ perceptions of their extent of influence on Council decision-making
Mana whenua partner agreement over the use and protection of the city’s resources for the future is appropriate
Residents’ perceptions of the extent to which they have the opportunity to participate in city life
Voter turnout in local elections
Environment | Hectares of open space land owned or maintained by the Council, per capita (sqm per capita)
Residents usage of the city’s open spaces
Residents’ perceptions that the natural environment is appropriately managed and protected
Kilometres of managed tracks and walkways
Hours worked – by recognised environmental volunteer groups and Botanic Garden volunteers
Bird counts – abundance and distribution
Water consumption (commercial and residential combined)
Renewable energy (GWH) generated in the city (and % of city’s electricity consumption)
City-wide greenhouse gas emissions
Freshwater biological health (macroinvertebrates)
Freshwater quality
Residents’ actions to reduce stormwater pollution
Total waste to landfill per capita
Residents’ actions to reduce waste
New Zealanders’ and residents’ perceptions that Wellington is an eco-city
Energy–use per capita
Number/square metres of ‘green star’ buildings/space in the city
% of residents who live in an insulated property
Economic development | Number of enterprises and jobs in the central city
Number of domestic and international visitors
Accommodation rates (guest nights and occupancy)
Number of major conferences
Number of A-level events held in Wellington and their economic contribution
New Zealand’s top 200 companies based in Wellington
Business enterprises – births and growth (net growth in business)
Growth in businesses and employees – ‘smart’ business
Domestic and international airline passengers entering Wellington Airport
Free wi-fi usage (logons/day) – waterfront and central city
Residents who have access to broadband (%) including ultrafast
GDP (per capita) and regional economic activity growth
Educational achievement (degree-level qualifications)
Labour force participation rate and youth NEET rates
Income – household and personal
Ratio of income to cost of living for residents
Pedestrian counts – average of various Lambton Quay sites
Total value of exports (value and estimated tonnage)
Number of international air connections (by country)
Businesses and employees in research and development sector
Secondary (international) and tertiary (international and domestic) students enrolled per 1000 residents
Cultural wellbeing | Residents’ frequency of engagement in cultural and arts activities
New Zealanders’ and residents’ perceptions that ‘Wellington has a culturally rich and diverse arts scene’
Resident perceptions that Wellington’s local identity (sense of place) is appropriately valued and protected
Events held at key city venues
New Zealanders’ and residents’ perceptions that ‘Wellington is the arts capital of New Zealand’
New Zealanders’ and residents’ perceptions that ‘Wellington is the events capital of New Zealand’
New Zealanders’ and residents’ perceptions that ‘Wellington has a culturally rich and diverse arts scene’
Residents’ usage (%) of libraries and frequency of use
Residents’ (%) agreement with the statement that “Wellington is an easy place to get involved in the arts”.
Social and recreation | Residents usage of City Council community and recreation facilities
Residents’ perceptions that they feel a sense of community with others in their neighbourhood
Residents’ perceptions that Wellington offers a wide range of recreation activities
Residents’ frequency of physical activity
Residents’ perceptions that there are barriers to participating in recreation activities
Residents’ importance of sense of community in local neighbourhood
Residents’ usage of libraries and frequency of use
Residents engaging in ‘neighbourly’ actions
Types of social networks to which residents belong (i.e. community, sports, ethnic, etc)
Ethnic diversity of the city’s population and residents’ values regarding diversity
Resident perceptions of safety – inner city and neighbourhood (day and night)
Residents’ perceptions – city safety issues of most concern
Recorded crime and resolution rates – by categories
Residents with home emergency items and plan
Number of notifications of the most prevalent food and water-borne diseases
Residents’ life expectancy
Residents’ perceptions of their ‘quality of life’
Urban development | Residents’ perceptions that Wellington is a great place to live, work and play
Value of residential and commercial building consents
Population: growth and density (central city, growth spine)
Residents’ perceptions of the city as an easy place to get to, use and enjoy
Residents’ perceptions of urban design/urban form safety issues (i.e. graffiti, vandalism, poorly lit public spaces, etc)
% of city’s population who reside in the central city
Building density throughout the city
Proportion of houses within 100m of a public transport stop
Identified earthquake-prone buildings that have been strengthened/demolished
Residents’ perceptions that heritage items contribute to the city and local communities’ unique character
New Zealanders’ perceptions that Wellington is an attractive destination
Residents sense of pride in the look and feel of the city/central city

Transport
Residents’ perceptions that peak traffic volumes are acceptable

Total fuel used on Wellington roads (litres)

Residents’ perceptions that the transport system allows easy access to the city

Mode of transport to access the central city (i.e. car, bus, train, walking, cycling)

Residents’ perceptions of quality and affordability of public transport services

Uses of public transport: buses, trains

Air quality monitoring (i.e. nitrogen dioxide, carbon monoxide, and particulate matter peaks)

Residents’ perceptions of transport related safety concerns

Number of road crashes resulting in injury

Social cost of crashes

Contact details: Mayor and Councillors

Mayor Celia Wade-Brown. Celia Wade-Brown
(Mayor)
City-wide
Phone: (04) 801 3102
mayor@wcc.govt.nz

Mayor Celia Wade-Brown. Ray Ahipene-Mercer
Eastern Ward
Phone: (04) 388 2366
ray.ahipene-mercer@wcc.govt.nz

Mayor Celia Wade-Brown. Jo Coughlan
Onslow-Western Ward
Phone: (04) 473 7920
jo.coughlan@wcc.govt.nz

Mayor Celia Wade-Brown. Paul Eagle
Southern Ward
Phone: 021 673 630
paul.eagle@wcc.govt.nz

Mayor Celia Wade-Brown. Sarah Free
Eastern Ward
Phone: 022 121 6412
sarah.free@wcc.govt.nz

Mayor Celia Wade-Brown. David Lee
Southern Ward
Phone: 021 220 2357
david.lee@wcc.govt.nz

Mayor Celia Wade-Brown. Andy Foster
Onslow-Western Ward
Phone: (04) 476 9220
andy.foster@wcc.govt.nz

Mayor Celia Wade-Brown. Justin Lester
(Deputy Mayor)
Northern Ward
Phone: (04) 478 8264
justin.lester@wcc.govt.nz

Mayor Celia Wade-Brown.Simon Marsh
Eastern Ward
Phone: 021 922 196
simon.marsh@wcc.govt.nz

Mayor Celia Wade-Brown.Iona Pannett
Lambton Ward
Phone: (04) 384 3382
iona.pannett@wcc.govt.nz

Mayor Celia Wade-Brown.Mark Peck
Lambton Ward
Phone: 027 446 1650
mark.peck@wcc.govt.nz

Mayor Celia Wade-Brown.Helene Ritchie
Northern Ward
Phone: (04) 473 1335
helene.ritchie@wcc.govt.nz

Mayor Celia Wade-Brown.Malcolm Sparrow
Northern Ward
Phone: 027 232 2320
malcolm.sparrow@wcc.govt.nz

Mayor Celia Wade-Brown.Simon Woolf
Onslow-Western Ward
Phone: 027 975 3136
simon.woolf@wcc.govt.nz

Mayor Celia Wade-Brown.Nicola Young
Lambton Ward
Phone: 021 654 844
nicola.young@wcc.govt.nz

Contact:

Wellington City Council
101 Wakefield Street, Wellington
Tel: 04 499 4444