Part A: Introduction

Mayor’s introduction

It’s an exciting time to be in the Capital. Employment is up, our hi-tech and retail economic activity is increasing, we’re making good progress for our environment and we are committed to a socially inclusive city. Events for all pockets and interests make the city buzz.

Our Annual Plan 2016/17 continues the strategic vision we set in Wellington 2040: Smart Capital of a people-centred city, connected to local communities and the world, environmentally alert with a dynamic central city at its heart.

Thank you to all the individuals and organisations who commented on our ideas, our plans and our budgets as part of the consultation process. Your submissions reinforced some ideas and challenged others to make our decision-making more robust. This Annual Plan now sets out our budget for the 2016/17 financial year, improving the Capital’s resilience while introducing fresh initiatives to ensure Wellington’s a place where local and global talent wants to live.

We have increased arts funding so our national and local cultural institutions thrive. Investment into a new outdoor events series will enliven our dynamic central city and keep Wellington in its rightful place as New Zealand’s creative Capital. Join us at exciting events like the World of WearableArt Awards Show, the British and Irish Lions matches, CubaDupa, the Cindy Sherman exhibition and other favourites including Summer City, Chinese Year of the Rooster and New Year’s Eve at Whairepo Lagoon.

Our commitment to a people-centred city sees us fund a collaboration of agencies to reduce the root causes of homelessness, welcome refugees and beautify the city. Our living wage has been extended from employees to cleaning and security contractors, encouraging productivity and loyalty.

Our environmental commitment includes the Low-Carbon Capital Plan with a pathway to reduce emissions by 80 percent by 2050. The Council’s purchase of the Zealandia visitor centre gives the Karori Wildlife Trust the long-term financial stability it needs to fulfil its 500-year vision of world-leading urban ecology and tourism.

Additional projects to ensure Wellington remains one of the most liveable cities in the world will start, including the Johnsonville Library upgrade, Arlington social housing upgrade, the new Harbour Escarpment walkway and new turfs for football and hockey.

A range of transport initiatives across all modes include improvements for pedestrians, safety initiatives to lower central city speeds, expanding our urban cycleway network, progressing Ngauranga to Airport modelling and consultation on integrated transport and urban design solutions for the 21st century.

In 2016/17 we’ll start the required strengthening of our iconic Town Hall, providing a home to a potential national school of music to boost music performance and talent development in the Capital. Construction of our new Convention Centre begins and we expect significant growth and investment from Wellington’s tourism offering. Located opposite Te Papa, the Movie Museum and Convention Centre will be a huge drawcard for visitors from across the globe. Once operational, $38 million GDP per annum will be generated and many jobs protected, providing a significant economic input for the city.

This financial year the Urban Development Agency will be established, rapidly increasing affordable housing of good design near decent facilities, rather than urban sprawl.

We’re focussing on inclusive growth with our Annual Plan, building a stronger future for our economy, our communities, and our Capital. Thank you to the public, and all the staff, volunteers, contractors and partners who will turn the plan to reality.

CELIA WADE-BROWN
Mayor

Message from the Chief Executive

This Annual Plan, which is effectively a new chapter in the Council’s Long-term Plan, helps Wellington grow sustainably.

All the signs point to a stronger economy in the coming year, which is the right time to make the decisions to keep that momentum going.

While the Council is heading in the right direction, there is still work to do.

The Council has three roles in a successful city:

1) Do the basics well – what I call the clean, green and safe agenda, keeping streets clean, roads maintained and emptying bins on time

2) Ensure the council is a well-led, well-run organisation with a clear agenda, sound finances and processes, good discipline and robust risk management and ICT systems. And there must be an effective, joined-up working relationship between appointed officials and the elected representatives.

3) Having an external focus – making the sure the city is the best it can be environmentally, socially and economically.

How does the Council measure up? On the first point, it does the basics really well. Wellington is a beautiful, clean and safe city. If you took an equivalent size city in the UK, there will be a few neighbourhoods you cannot walk around during the day and feel safe. There is no place in Wellington that is unsafe. The city’s assets and roads are in good shape with more accurate information than other councils on the age and condition of its underground pipe network.

On the second point, there is room for improvement but the Council is making good progress. It has an excellent credit rating (AA), prudent financial limits, carries less debt than most councils and is using innovation, shared services and technology to reduce costs and be as efficient as possible.

On the final point, the Council is doing really well environmentally and socially but needs to do more to support the economy – and it has, and it is. The council’s LTP tackled the economy head-on with exciting new projects to transform Wellington. The focus on the economy matters because rates from the business sector fund almost half the cost of providing council services. A growing rates base means more funding to improve environmental and social services, as well as infrastructure and economic development.

I have always said that the Council must earn the right to do the clever stuff – in other words, it must do the basics really well before it can invest in new and exciting projects such as the movie museum and convention centre. The Council is doing the basics well and is always looking for new and better ways of working.

Parking Services is a case in point. The Council brought the service in-house, invested heavily in training and equipment and paid parking officers the living wage. It modernised the service, rolled out sensors to automate street parking, will allow differential pricing and provided more parking spaces from the same system. It is not all about enforcement, customer service is equally important and parking officers play a wider ambassadorial role. So overall the city gets the best of both worlds – an improved service and value for money.

The good news is that the Council has managed to add new initiatives while keeping a lid on rates – the average rates increase this year is 3.6%, as forecast in our LTP and, importantly, without having to cut services.

The Annual Plan means the people of Wellington will continue to receive all their Council services – plus new projects that will transform the city – at an average of $5.93 per resident a day. This is roughly the same cost per resident a day as power, petrol, phone or internet, bills – but the council provides a multitude of services, not just one. By anyone’s measure, that is good value for money.

KEVIN LAVERY
Chief Executive

Our broad approach

Linking our Annual Plan 2016/17 with our Long-term Plan approach

More people today than at any other time in history have a choice about where they live. That’s why we need to invest in the city.

When we set the strategic direction for Wellington last year during our Long-term plan phase we did so in recognition of the fact that cities compete on the global stage. We compete with other city regions to attract people, students, jobs, ideas, businesses, trade and investment.

Other cities invest in their offering, and without ongoing investment and improvements to the city we lose our comparative advantage as an attractive place to live, work, do business and have a high quality of life.

Broad approach of the 10-year-plan

Though Wellington offers outstanding quality of life, its economy has considerable untapped potential. A stronger economy means jobs, prosperity and more opportunities for all Wellington residents. Economic growth is about:

making all residents more prosperous, so they can reach their potential and live enjoyable and fulfilling lives

attracting new skilled migrants to live, work and establish businesses in the city

providing a wider range of opportunities so residents have a choice of jobs, or creative or business opportunities

providing more entertainment and leisure opportunities and a wider range of attractions

increasing the city’s capital value – after all, a bigger rating base means the cost of rates are spread across more people, making them more affordable

releasing capital to invest in higher quality of life for all and a stronger environment.

Areas of focus for year two of the Long-term Plan

In our Long-term plan we budgeted for essential services for the city such as water supply, drainage, waste, parks and gardens, libraries, pools, sportsfields, recreation centres, streets and social housing. And this year, we will continue these investments in the Annual plan.

In addition to doing the basics well, areas of focus for year two include:

making the city more resilient and better able to cope with environmental shocks such as earthquakes and climate change

continuing our investment for economic growth by delivering on major catalyst projects and improving our connections to the world

working with others to make the city’s transport system more efficient by prioritising public transport, investing in new cycleways and walkways, and reducing bottlenecks on the road network, as well as continuing to focus on reducing resource use, waste and pollution

establishing an urban development agency to allow the Council to more actively deliver on the city’s Urban Growth Plan.

Overview

The Local Government Act 2002 requires us to plan in 3-year cycles. Every 3 years, we consult the community on a draft Long-term plan (LTP). 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 goals

We’ve put in place clear goals.

The Council has a vision for the city, Wellington Towards 2040: Smart Capital. It aims to grow and sustain the city as “an inclusive place where talent wants to live”.

The strategic vision is supported by four community outcomes or long-term goals:

Connected city: With improved physical and virtual connections, we can unleash the potential of Wellington’s people and businesses. Technology reduces the city’s physical distance from the world and markets, and the city’s compactness allows for relationships to form with ease.

People-centred city: Cities compete more for people, in particular, for the highly skilled, educated people who already make up a large proportion of Wellington’s population. It will become increasingly important to draw on these strengths, to ensure the city is open, welcoming, vibrant and embraces diversity.

Eco-city: We can build on current environmental strengths to transition to a low carbon future. As an eco-city, Wellington will achieve high standards of environmental performance, coupled with outstanding quality of life and an economy increasingly based on smart innovation.

Dynamic central city: By fostering the central city as a hub of creative enterprise, we can lead the region to the next level in economic transformation. With universities, research organisations and creative businesses all clustered in or near the central city, Wellington can grow, taking the wider region to the next step in prosperity and quality jobs.

The Long-term plan 2015–25 (LTP)

The LTP was adopted in June 2015 as our key strategic planning statement for the next 10 years. It also identified the key work programmes and financial parameters for a 3-year period. The key objectives of the LTP are:

“investing to grow” through establishing a programme of major projects that grow the economy and deliver returns on investment

investing to maintain and improve existing services, including making infrastructure more resilient and the city’s transport system more efficient

increasing the use of existing assets rather than spending on new infrastructure

improving asset management practices to better manage risk and the timing of asset replacement

achieving ongoing efficiencies from shared services and improved customer experiences.

To fund the proposed investments we have developed a financial strategy that:

limits rates increases to 3.9 percent annually, on average, over the next 10 years, with which we have agreed to 4.5 percent annually, on average, for the first 3 years of the LTP

caps Council debt at a maximum of 175 percent of annual income.

Detail on the LTP is available at: http://www.our10yearplan.co.nz

Annual Plan 2016/17

Annual plans give effect to LTPs. They identify, in detail, the proposed activity to be undertaken by us and how expenditure will be funded for a given year. 2016/17 is the second year of our LTP 2015–25.

As a result of recent changes to the Local Government Act 2002, any proposed variations to the activities and budgets contained in an LTP require explanation and justification in an Annual plan consultation document. This consultation document becomes the basis for engagement with our ratepayers and stakeholders on an Annual plan. This is because we are required to consult those in the community “who will or may be affected by, or have an interest in” an Annual plan before it is adopted, if the proposed plan includes “significant or material differences from the content of the LTP for the financial year to which the proposed Annual plan relates”.

The Annual Plan 2016/17 is the first developed under these new statutory requirements.

Financial summary

Measure
Annual Plan 2016/17
Long-term Plan 2015–25

2016/17
2016/17

Operating expenditure
$462.6 million
$458.6 million

Capital expenditure
$180.8 million
$172.5 million

Average rates increase after growth
3.6 percent
3.6 percent

Forecast year-end borrowings
$479.1 million
$492.0 million

Operational expenditure funded by rates
65 percent
65 percent

Rates distribution
45 percent commercial
55 percent residential
45 percent commercial
55 percent residential

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 creating resilient and vibrant communities and a strong economic environment.

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 LTP are:

Rates limits: | 2016/17
Rates increase limit (after growth) first triennium average | 4.5%
Rates increase limit (after growth) 10-year average | 3.9%

The average rates increase (after growth) signalled in the LTP for 2016/17 was 3.6 percent. The Annual Plan 2016/17 remains at this level and is compliant with the LTP financial strategy limits shown above.

The parameters we have set for borrowings as part of the LTP are:

Borrowings limits:
Operating targets
Prudential limits
Annual Plan
2016/17

Long-term Plan 2015–25 limit:

Net borrowing as a percentage of income
<150.0%
<175.0%
109.9%

Prudential limits:

Net borrowing as a percentage of income
<150.0%
<175.0%
109.9%

Net interest as a percentage of income
<15.0%
<15.0%
5.3%

Net interest as a percentage of annual rates income
<20.0%
<20.0%
8.8%

Liquidity (term borrowing and committed loan facilities to existing external net debt)
>115.0%
>115.0%
>115.0%

For 2016/17 we are within all of the operating targets.

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, maintaining our parks and gardens and delivering events.

The Council plans to spend $462.6 million on operational expenditure in 2016/17. This compares with $458.6 million forecast for 2016/17 in the LTP. Changes to the operational expenditure can be found in the Funding Impact Statements.

Sources of operational funding

Sixty-five 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 graphs below show how we are splitting our operational expenditure and how it will be funded in 2016/17.

*Graph reconciles to 'Total Expense' in the Prospective Statement of Comprehensive Revenue and Expense p.108.

*Graph reconciles to 'Total operating funding' in the Whole of Council Funding Impact Statement p.80.

Capital expenditure

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

Capital expenditure pays for purchasing, building, developing or renewing 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 $180.8 million in 2016/17.

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 rates funded depreciation. For new assets and upgrades, the main funding sources are borrowings, subsidies and grants.

The graphs below show how we are spending our capital expenditure and how it will be funded in 2016/17.

Engagement and consultation process

Prior to the development and publication of the Annual Plan 2016/17 Consultation Document we gave Wellingtonians the opportunity to share their ideas related to the objectives of the LTP – how to grow Wellington’s economy, be a smart resilient city, and make better use of infrastructure like parks, roads and libraries. The Council received 131 submissions and 184 ideas through our website’s online form, social media, email and by post. Fifty-seven submitters spoke to Councillors at panel hearings held on Monday 22 and Wednesday 24 February 2016.

The panel hearings were a new initiative to give an opportunity for people to highlight new ideas and to do it in a less formal way. For Councillors it provided valuable feedback on the issues that matter to local people and different community groups.

In March 2016 we issued a Consultation Document that highlighted the six key proposals for change we wanted to bring to residents’ attention and to get their feedback. These issues have been identified as either significant and/or material in nature and are different from what was proposed in the LTP. The six proposed changes were:

Urban Development Agency – Creating a new Council-controlled organisation (CCO) with land development powers that was not specified in the LTP.

Climate Change Action Plan and resilience – Proposing a new programme of work with ongoing costs and operational changes for the Council that was not contained in the LTP.

Food Act fee changes – Changing the fee structure from that outlined in LTP.

Zealandia governance changes – Creating a new Council-controlled organisation (CCO) that was not specified in the LTP.

Kilbirnie Business Improvement District – Including a new targeted rate to be applied to commercially rated properties in this area.

As a result of the initiatives process and the panel hearings, the Consultation Document also proposed a number of other initiatives Councillors wanted to be considered for funding in 2016/17. These initiatives were included in the Consultation Document so Councillors could gauge the level of public support for them before making any final decisions on the content of the Annual Plan 2016/17.

The Annual Plan 2016/17 Consultation Document was launched by the Mayor on 29 March. A series of consultation events were held over the following month to provide more information on the LTP and its objectives, and the proposed changes to the LTP contained in the Consultation Document. These consultation events also provided stakeholders with an opportunity to discuss the future needs of their interest area.

Because a greater number of people are choosing to engage with us through social media, we also adopted a continuous conversation approach on our Facebook and Twitter accounts, and our other social media channels. Over the consultation period a range of tweets and Facebook posts were made by the Council about the Annual Plan 2016/17 and the proposed changes to the LTP. These social media posts were used to raise awareness of the engagement and consultation process and to encourage people to make submissions. Other awareness raising activities included emails to over 1200 stakeholders, media releases, and advertisements in both the Dominion Post and Wellingtonian newspapers.

Submissions received

During the engagement and consultation process 808 written submissions were received: 114 filed online, 341 sent by email and 353 by post. All those providing written submissions were able to present in support of their submission at oral hearings. Oral hearings were held in the week beginning 9 May and 74 people choose to present. While some submitters provided feedback on issues raised in the Consultation Document, some submitters sought funding for a range of community initiatives not previously identified.

The submission process showed general support for the changes to the LTP and the new funding initiatives. After some minor alterations due to feedback received through the consultation process, all proposals included in the Consultation Document were included in the proposed Annual Plan 2016/17. Also included in the proposed plan were a small number of additional initiatives that arose through the consultation process and oral hearings, along with some funding and budget phasing proposals that arose after the Consultation Document was issued.

In early June final decisions on the content of the Annual Plan 2016/17 and the rates levels for 2016/17 were made. In their entirety these decisions resulted in:

a proposed rates increase (after growth) of 3.6 percent, in-line with that proposed for 2016/17 in the LTP; and total closing borrowing of $479.1 million for 2016/17, compared to a $492.0 million forecast for 2016/17 in the LTP.

The details of the key projects and their overall costs for 2016/17 are outlined in the next section of this plan.

What has changed after the consultation process

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

starting the implementation of the Smokefree Action Plan to move Wellington towards being a smokefree city by 2025

increasing the number of parking officers in order to provide service levels similar to those from when the function was outsourced to enable the continuation of quality service levels

increasing the number of drinking fountains in the central city by three in 2016/17

increasing the funding for the Newtown Festival to help with the event organisation in 2016/17

removing swimming pool entry fees for under-5s (this fee change does not affect the Learn to Swim programme fees)

removing a proposed Late Fee for burial services

additional funding for the developed design phase for the Vogelmorn Precinct

additional funding to continue the implementation of the Commonwealth Walkway

additional funding for the Terawhiti Karori Park artificial surface to increase the funding included in the LTP

bringing forward the Tawa Town Centre upgrade, which was originally planned for 2019/20.

Part B: Our work in detail

Statements of service provision

These outcomes below guide our activities. We’re looking to develop greater linkages between these outcomes and our seven activity areas. We have also started to identify outcome measures and indicators and over the next few years we will progressively introduce a performance framework to allow us to track progress against these outcomes.

Our outcomes and objectives are structured around the seven activity areas against which we measure our performance. These activities are:

Governance – delivering trust and confidence in decision-making
Environment – protecting and enhancing Wellington’s environment
Economic development – promoting the city’s competitive advantages in order to enhance quality of life
Cultural wellbeing – reflecting and shaping Wellington’s unique cultural identity
Social and recreation – sustaining safe, resilient and healthy communities
Urban development – preserving Wellington as a compact, vibrant and attractive city, now and into the future
Transport – delivering an efficient and safe transport system that connects people and places

In the following pages we explain what is proposed in 2016/17 for each activity area in terms of:

scope statement – an outline of the scope of our work under the activity

key projects – a summary of the key initiatives for the year

activity statements – what activities are to be undertaken and their rationale, the specific services to be provided

performance targets – an outline of objectives, outcome indicators and performance targets

what it will cost – a summary financial table for that activity area.

1 Governance

Pārongo ā-tāone

Governance is about democratic local decision-making on behalf of the people of Wellington. Our governance activities include managing local elections, informing residents about the city and the issues or challenges it faces, listening to residents’ views, making decisions in the best interests of the city and its people, and managing partnerships with mana whenua and other groups.

This work is essential for local democracy and for the quality of Council decision-making. Residents have a fundamental right to influence the makeup of the Council through elections, and to be informed about, and influence, Council decision-making. Public input and involvement improve the quality of decision-making by ensuring that all points of view and all relevant information are considered.

Our partnerships with mana whenua recognise their special place in the city’s history and special relationships with its land, waterways and other parts of its environment.

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 that 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 relating to our services.

Key projects

Giving effect to the Long-term plan 2015–25

It’s the Council’s job to meet the current and future needs of communities for local infrastructure, public services and regulatory functions in the most cost-effective way. The LTP was adopted in June 2015 and sets out the Council’s intentions for the decade ahead. During 2016/17 an amendment to the LTP will be progressed to reflect the changes to the plan from the Council’s decisions on the Movie Museum and Convention Centre proposal.

Local body elections

The local body elections are held every 3 years throughout New Zealand and the next Election Day is Saturday 8 October 2016. Elections will be held for the Mayor, 14 Councillors (who are elected from five wards) and Community Board members for the Tawa and Makara-Ohariu Community Boards. Nominations for these positions will be open from 15 July to 12 August.

Wellington has used the Single Transferrable Vote (STV) voting system since 2002. Under this system voters rank their preferred candidates with a number, and candidates are elected by reaching the “quota” – the number of votes required to be elected – which is based on the total number of votes and the number of vacant positions.

Voting documents will be posted out to all electors who are enrolled from 16 September. The voting period is approximately 3 weeks. Voters fill out the form and post the voting document back by 12 noon on Saturday 8 October. A progress result is generally expected by late afternoon on Saturday 8 October.

Pre-election report

Before each local body election, the Chief Executive must produce a pre-election report summarising the major projects planned for the following 3 years along with financial information on rates, rates increases and borrowing. The pre-election report is expected to be released on 29 July.

Digitisation of information

We have a requirement to digitise paper files so that we can respond to internal and external requests with digital documents and move to design and delivery of end-to-end digital services.

Council digitisation is delivered by a digitisation service established on-site at City Archives that will operate through to at least 30 June 2020. This service specialises in digitising paper files while preserving the paper original. These types of files are being digitised as they are used or if they are at risk from overuse. At the same time an off-site outsourced arrangement is used to buy one-off digitisation projects where the paper originals are no longer required.

Statement on Māori and mana whenua

Our Treaty obligations

Wellington City Council is involved in numerous activities that provide a platform for engagement with local iwi and the wider Māori community. We are also subject to a wide range of legal obligations and Te Tiriti o Waitangi considerations, including Memoranda of Understanding with local mana whenua iwi entities – Port Nicholson Block Settlement Trust and Te Rūnanga o Toa Rangatira Incorporated.

Mana whenua partnerships and iwi support

The legal obligations may be the foundations for organisational policy and delivery but on their own they don’t adequately emphasise the importance of Te Tiriti, the partnership with Māori and the critical value that this unique relationship can bring to the city both domestically and internationally.

As such, we will work to ensure the past, present and future role of Māori in our city will be valued and reflected in all aspects of our work, including urban design, economic development, resource management, social wellbeing, arts, culture and recreation.

Governance – group of activities

GROUP OF ACTIVITIES
RATIONALE
SERVICE OFFERING
NEGATIVE EFFECTS

1.1 Governance, information and engagement

1.1.1 City governance and engagement

1.1.2 Civic information

1.1.3 City Archives
Facilitating democratic decision-making

Providing open access to information

Providing advice, research and administrative support to elected members and community boards

Hosting local body elections

A call centre and website providing 24/7 access to information and a place to log service faults

Management of archival information in line with legislation

Facilitating engagement on key issues and input from advisory groups

Accountability planning and reporting

There are no significant negative effects from these activities.

1.2 Māori and mana whenua partnerships

1.2.1 Māori and mana whenua partnerships
Partnership and recognition of the special place of mana whenua

Maintaining formal relationships with two mana whenua partners

Facilitating opportunities to contribute to local decision-making

There are no significant negative effects from these activities.

Governance – performance measures

GOVERNANCE

Objectives
Democratic decision-making

Open access to information

Recognition of Māori

Outcome indicators
Residents (%) who agree that decisions are made in the best interests of the city

Residents (%) who state that they understand how the Council makes decisions

Residents (%) who understand how they can have input into Council decision-making

Mana whenua partners agree that the use and protection of the city's resources for the future is appropriate

Residents (%) who believe they have the opportunity to participate in city life

Voter turnout in local elections, referendums and polls

1.1 Governance, information and engagement

1.1.1 City governance and engagement

1.1.2 Civic information

1.1.3 City Archives

PURPOSE OF MEASURE
PERFORMANCE MEASURE
2016/17
2017/18
2018–25

To measure the quality of the public's involvement in Council decision-making
Residents (%) satisfaction with the level of consultation (ie the right amount)
55%
55%
55%

Residents (%) who are satisfied or neutral (neither satisfied nor dissatisfied) with regard to their involvement with decision-making
75%
75%
75%

To measure the quality and timeliness of residents' access to information
Council and committee agendas (%) are made available to the public within statutory timeframes (2 working days prior to the meeting)
100%
100%
100%

Council and committee agendas (%) that are made available to elected members 5 days prior to the meeting and to the public four days prior to the meeting
80%
80%
80%

Residents (%) who agree that Council information is easy to access (eg from the website, libraries, newspapers, etc)
55%
60%
Increasing trend

Residents (%) who agree that the Council website is easy to navigate and get information from
70%
75%
75%

Contact Centre response times – calls (%) answered within 30 seconds
80%
80%
80%

Contact Centre response times – emails (%) responded to within 24 hours
100%
100%
100%

1.2 Māori and mana whenua partnerships

1.2.1 Māori and mana whenua partnerships

PURPOSE OF MEASURE
PERFORMANCE MEASURE
2016/17
2017/18
2018–25

To measure the health of our relationships with mana whenua
Mana whenua partner satisfaction with Council relationship (satisfied and very satisfied)
Satisfied
Satisfied
Satisfied

To measure the engagement of the city's Māori residents
Māori residents (%) who are satisfied or neutral (neither satisfied nor dissatisfied) with regard to their involvement with decision-making
75%
75%
75%

Governance – activity budget

1.1 GOVERNANCE, INFORMATION AND ENGAGEMENT
2015/16
LTP
GROSS EXPENDITURE
2016/17
ANNUAL PLAN
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

1.1.1 – City governance and engagement
9,901
10,909

1.1.2 – Civic information
5,435
5,542

1.1.3 – City Archives
1,758
1,967

Total operating expenditure
17,094
18,418

Capital expenditure
($000)
($000)

1.1.1 – City governance and engagement
-
116

1.1.2 – Civic information
-
-

1.1.3 – City Archives
-
-

Total capital expenditure
-
116

1.2 Māori and mana whenua partnerships
2015/16
LTP
GROSS EXPENDITURE
2016/17
ANNUAL PLAN
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

1.2.1 – Māori and mana whenua partnerships
281
295

Total operating expenditure
281
295

Capital expenditure
($000)
($000)

1.2.1 – Māori and mana whenua partnerships
-
-

Total capital expenditure
-
-

2 Environment

Taiao

The Council is responsible for vital services such as water supply, waste reduction and disposal, and wastewater and stormwater. We fund conservation attractions such as Zealandia and Wellington Zoo, manage open spaces such as the Town Belt and Outer Green Belt, and the city’s beaches and coastline.

We fund these services because they are critical to the lives of individual Wellingtonians and to the community as a whole. They ensure that the city is safe and liveable, and that basic human needs are met. They minimise harmful effects from human activity. They also provide recreation opportunities, attract visitors, and make the city a beautiful place to live.

The Council is a regulator, funder and provider of services in the environment area. The environment is the Council’s biggest area of activity, with the majority of funding going on core services such as water, wastewater and stormwater.

Key projects

Low-Carbon Capital Plan 2016–18

The Council aims to make Wellington the “low carbon capital” and has agreed a plan that will support immediate climate change action and build a foundation to support our low carbon aspirations. The plan has three pillars of action:

Greening our growth – focussed on making sure that as the city grows it does so in a way that enhances its low carbon objectives. Funding is provided to programmes that reduce waste, make homes warmer and healthier, and reduce energy in commercial as well as residential homes.

Changing the way we move – focussed on supporting car-sharing schemes and electric vehicle charging infrastructure as well as support for walking, cycling and public transport modes.

Leading by example – focussed on reducing the organisation’s emission profile, as well as reducing the Council’s overall vehicle fleet while increasing the proportion of electric vehicles.

Zealandia

The Council has agreed it will purchase the Zealandia Visitor Centre from the Karori Sanctuary Trust for $10.3 million. In return, the Trust will repay the loan it owes the Council and the Guardians of the Sanctuary will approve amendments to its Trust deed to allow the Guardians to provide nominations to the Council for future Trust Board members. Both these changes will be progressed during the year and the designation of the Trust will be changed to a Council-controlled organisation, where the Council has overall governance control. In addition, the Council will maintain its grant funding at $875,000 for 2016/17 and will continue its in-kind support for the activities and initiatives Zealandia provides to visitors and residents.

Wastewater laterals

The Council has agreed to investigate the feasibility and impact of assuming ownership of wastewater laterals in the road reserve. Wastewater laterals are pipes that connect the plumbing in homes and businesses to public sewer mains. Private property owners in Wellington are currently responsible for the repair and renewal of wastewater laterals all the way to the connection with the public sewer main, including any parts under road reserve (mainly roads and verges). During 2016/17 further work will be undertaken to determine the condition of wastewater laterals, consequences of assuming ownership, and policy changes and consultation required to give effect to any changes in ownership.

Our Natural Capital

Our Natural Capital: Wellington’s Biodiversity Strategy and Action Plan is our vision for the city’s indigenous biodiversity.

It is an ongoing project with a budget of $330,000 for 2016/17. It aims to:

protect the city’s indigenous biodiversity, restore significant areas, create safe buffer zones around them and connect them together

reduce pest numbers throughout Wellington City to a point where our native species can survive and populations can expand

focus on raising awareness of the issues facing indigenous biodiversity and connecting people to their natural environment.

Walkway upgrades

We deliver ongoing renewals and upgrades of programme of trails as per the Open Spaces Access Implementation Plan and Our Capital Spaces. The purpose of the renewals and upgrade programme is to:

ensure safe, accessible and sustainable trails are provided that enable all trail users to be active and healthy, as well as meet the local trail user community’s expectations regarding ongoing trail works throughout the Council’s reserve network

meet the objectives of Our Capital Spaces by ensuring beginner riders have the opportunity to ride within the Council’s reserve network, and provide a family ride and easy walk resource within the reserve network.

Harbour Escarpment Walk

The Harbour Escarpment Walkway will eventually link Waihinahina Park in Newlands to Kaiwharawhara, running through Newlands along the coastal escarpment. It was identified in the Northern Reserves Management Plan and some components have already been developed. The new work in 2016/17 will cost $350,000 and will significantly improve the connectivity between these parts and increase its value for both locals and visitors.

Hydraulic modelling

The Council needs to better understand the existing capacity of the stormwater network, where and to what extent we are providing flood protection across a range of event severity, and where the areas exposed to high flood risk are. Hydraulic modelling projects will address this with $1.5 million budgeted in 2016/17. There are some known problem areas, and progressive improvement in these areas as well as advancing our understanding of citywide issues are planned.

Stormwater upgrades

The Council manages the network that collects, transports and disposes of stormwater. We work hard to reduce the risks of flooding and pollution but stormwater is discharged – untreated – into Wellington Harbour and streams. The Council is committing resources each year to improving water quality in the inner harbour and along the south coast. For 2016/17 this amount is $4.1 million.

Lyall Bay foreshore

In 2016/17 stage one of the Lyall Bay Foreshore Resilience Plan will be completed for around $1.0 million. Under the plan, the car park at Surfers Corner will be repaired, a new block wall built for the middle beach, and pipe extensions and rock riprap built at the western end of the beach.

Environment – group of activities

GROUP OF ACTIVITIES
RATIONALE
SERVICE OFFERING
NEGATIVE EFFECTS

2.1 Gardens, beaches and green open spaces

2.1.1 Local parks and open spaces

2.1.2 Botanic gardens

2.1.3 Roads open spaces

2.1.4 Town belts

2.1.5 Community environmental initiatives

2.1.6 Walkways

2.1.7 Biodiversity
Provide access to green open spaces

Provide public places to congregate

Provide access to recreational opportunities

Enhance biodiversity
Manage and maintain:

4000ha of parks, reserves and beaches

200 buildings for community use

340km of walking and mountain bike tracks

over 200,000 square metres of amenity bedding and horticultural areas

boat ramps, wharves, seawalls and slipways

In our management of the city’s green open spaces, we seek to balance recreation needs against environmental protection. While recreational use can have negative effects on the immediate environment, in most cases these are not significant.

We do not anticipate any other significant negative effects associated with our management of these services.

2.2 Waste reduction and energy conservation

2.2.1 Waste minimisation, disposal and recycling

2.2.2 Management closed landfills aftercare

2.2.3 Energy efficiency and conservation
Minimise and manage waste
Manage and monitor:

landfill operations/ composting waste at the Southern Landfill

domestic recycling and rubbish collection

the environmental impacts of closed landfills

programmes to educate residents to manage and minimise waste effectively

Waste management has the potential to create leachates and gases. The construction and management of the Southern Landfill is designed to minimise the impact of these. The service is subject to resource consent conditions and is monitored.

2.3 Water

2.3.1 Water network
Security of supply of potable water

Ensure high-quality water is available at all times for drinking and other household and business uses

Maintain 80 reservoirs, 34 pumping stations, 8000 hydrants and 1250km of pipes

We do not anticipate any significant negative effects associated with our provision of these services.

2.4 Wastewater

2.4.1 Sewage collection and disposal

2.4.2 Sewage treatment
Clean waterways are essential for public health and to the city’s environment.
Provide and monitor:

the city’s sewage collection, treatment and disposal in line with resource consent conditions

a real-time network monitoring system

the performance of Wellington Water

The wastewater network aims to minimise the harm to people that would arise without it. The Council has made significant investment in plant and equipment to treat the waste before it is disposed. There is the risk of minor overflows into waterways during storm events. These occurrences are rare and are monitored to reduce public health impacts.

2.5 Stormwater

2.5.1 Stormwater management
Keep people and property safe from flooding

Maintain, renew and upgrade the stormwater network to protect flooding

Introduce a hydraulic model

Monitor the performance of Wellington Water

The stormwater network aims to minimise the impact of flooding. The network can carry containments, such as oils from roads or run-off from developments, into waterways. We educate residents to change behaviours, such as pouring paint down drains, and monitor our waterways.

2.6 Conservation attractions
Inform and educate on the importance of conservation and biodiversity

Attract visitors

Protection of flora and fauna

Provide funding to Wellington Zoo, and support its expansion with the new Meet the Locals exhibition

Part-fund Zealandia, and monitor its performance

Provide a one-off $6m grant for the development of an Ocean Exploration Centre on the south coast (subject to third party funding and a final business case)

We do not anticipate any significant negative effects associated with our role in these services.

Environment – performance measures

ENVIRONMENT

Objectives
Security of supply

Waste reduction

Access to green open spaces

Biodiversity

Outcome indicators
Open space land owned or maintained by the Council – total hectares and sqm per capita

Residents' usage of the city's open spaces – local parks and reserves, botanic gardens, beaches and coastal areas, and walkways

Residents' perceptions that the natural environment is appropriately managed and protected

Hours worked by recognised environmental volunteer groups and botanic garden volunteers

Water consumption (commercial and residential combined)

Freshwater biological health (macro invertebrates) – Makara, Karori, Kaiwharawhara and Porirua streams

Freshwater quality – Makara, Karori, Kaiwharawhara and Porirua streams (note data for Owhiro Stream not available)

Energy use per capita

Number/sqm of “green star” buildings/space in the city

Total kerbside recycling collected per capita

Total waste to the landfill per capita

Selected indicators from the City Biodiversity Index (specific indicators to be confirmed)

2.1 Gardens, beaches and green open spaces

2.1.1 Local parks and open spaces

2.1.2 Botanic gardens

2.1.3 Beaches and coast operations

2.1.4 Roads open spaces

2.1.5 Town belts

2.1.6 Community environmental initiatives

2.1.7 Walkways

2.1.8 Biodiversity (pest management)

2.1.9 Waterfront public space

PURPOSE OF MEASURE
PERFORMANCE MEASURE
2016/17
2017/18
2018–25

To measure the quality of the open spaces we provide
Residents' satisfaction (%) with the quality and maintenance of green open spaces – local parks, playgrounds and reserves; botanic gardens; beaches and coastal areas; and walkways
90%
90%
90%

Number of visitors to the Botanic Gardens (including Otari-Wilton’s Bush)
1,280,000
1,280,000
1,280,000

To measure the quality of street cleaning services
Residents' satisfaction (%) with the quality of street cleaning
85%
85%
85%

Street cleaning (%) compliance with quality performance standards
98%
98%
98%

To measure the quality and quantity of work we undertake to protect biodiversity
We will plant 2 million trees by 2020
1,539,927
(77% of 2020 target)
1,690,127
(85% of 2020 target)
2 million by 2020
(100% of target)

High value biodiversity sites (%) covered by integrated animal pest control or weed control
59%
63%
70% by 2020

Proportion of grant funds successfully allocated (through milestones being met)
95%
95%
95%

2.2 Waste reduction and energy conservation

2.2.1 Waste minimisation, disposal and recycling management

2.2.2 Closed landfills aftercare

2.2.3 Energy efficiency and conservation

PURPOSE OF MEASURE
PERFORMANCE MEASURE
2016/17
2017/18
2018–25

To measure the quality of waste reduction and recycling services
Residents (%) satisfaction with recycling collection services
85%
85%
85%

Waste diverted from the landfill (tonnes)
at least 16,500 tonnes of recyclable material
at least 16,500 tonnes of recyclable material
at least 16,500 tonnes of recyclable material

Residents (%) who regularly use recycling (including weekly, fortnightly or monthly use)
90%
90%
90%

To measure the quality of our waste disposal services
Residents (%) satisfaction with waste collection services
90%
90%
90%

Energy sourced from the Southern Landfill (GWh)
8 GWh
8 GWh
8 GWh

To measure the amount (quantity) of the Council's energy consumption and emissions
WCC corporate energy use (including WCC general, pools and recreation centres, and CCOs)
Decrease in energy use from previous year
Decrease in energy use from previous year
Declining trend

WCC corporate greenhouse gas emissions
Compared to 2003, reduce emissions 40% by 2020 and 80% by 2050
Compared to 2003, reduce emissions 40% by 2020 and 80% by 2050
Compared to 2003, reduce emissions 40% by 2020 and 80% by 2050

2.3 Water

2.3.1 Water network

2.3.2 Water collection and treatment

PURPOSE OF MEASURE
PERFORMANCE MEASURE
2016/17
2017/18
2018–25

To measure the quality of water supplied to residents and the services that ensure security of supply
Compliance with Drinking Water Standards for NZ 2005 (revised 2008) (Part 4 bacterial compliance criteria) and (Part 5 protozoal compliance criteria)

100%
100%
100%

Maintenance of water supply quality gradings from Ministry of Health

Maintain
Maintain
Maintain

Customer satisfaction with water supply
90%
90%
90%

Number of complaints about:
n/a
n/a
n/a

(a) drinking water clarity
(b) drinking water taste
(c) drinking water odour
(d) drinking water pressure or flow
(e) drinking water continuity of supply
(f) responsiveness to drinking water complaints

per 1000 connections.

Median response time for:

(a) attendance for urgent call outs

60min
60min
60min

(b) resolution for urgent call out

4 hours
4 hours
4 hours

(c) attendance for non-urgent call outs

36 hours
36 hours
36 hours

(d) resolution for non-urgent call outs

15 days
15 days
15 days

Percentage of real water loss from networked reticulation system
<14%
<14%
<14%

Average drinking water consumption/resident/day
375 litres per day
375 litres per day
375 litres per day

Number of unplanned supply cuts per 1000 connections
< 4
< 4
< 4

2.4 Wastewater

2.4.1 Sewage collection and disposal network

2.4.2 Sewage treatment

PURPOSE OF MEASURE
PERFORMANCE MEASURE
2016/17
2017/18
2018–25

To measure the quality and timeliness of the wastewater service
Number of wastewater reticulation incidents per km of reticulation pipeline (blockages)

<=1.2
<=1.2
<=1.2

Dry weather wastewater overflows/1000 connections
0
0
0

Customer satisfaction with the wastewater service
75%
75%
75%

Number of complaints about:
n/a
n/a
n/a

(a) wastewater odour
(b) wastewater system faults
(c) wastewater system blockages
(d) responsiveness to wastewater system issues

per 1000 connections.

Median response time for wastewater overflows:

(a) attendance time
(a) <= 1 hour
(a) <= 1 hour
(a) <= 1 hour

(b) resolution time
(b) <=6 hours
(b) <=6 hours
(b) <=6 hours

To measure the impact of wastewater on the environment
Breaches of resource consents for discharges from wastewater system. Number of:
0
0
0

– abatement notices
– infringement notices
– enforcement orders
– convictions

for discharges from wastewater system

2.5 Stormwater

2.5.1 Stormwater management

PURPOSE OF MEASURE
PERFORMANCE MEASURE
2016/17
2017/18
2018–25

To measure the quality and timeliness of the stormwater service
Number of pipeline blockages per km of pipeline
<= 0.5
<= 0.5
<= 0.5

Customer satisfaction with stormwater management
75%
75%
75%

Number of complaints about stormwater system performance per 1000 connections
n/a
n/a
n/a

Median response time to attend a flooding event
<= 60 minutes
<= 60 minutes
<= 60 minutes

Breaches of resource consents for discharges from stormwater system. Number of:
0
0
0

To measure the impact of stormwater on the environment

– abatement notices
– infringement notices
– enforcement orders
– convictions

for discharges from stormwater system

Number of flooding events
n/a
n/a
n/a

Number of habitable floors per 1000 connected homes per flooding event
n/a
n/a
n/a

Percentage of days during the bathing season (1 November to 31 March) that the monitored beaches are suitable for recreational use
90%
90%
90%

Percentage of monitored sites that have a rolling 12-month median value for E.coli (dry weather samples) that do not exceed 1000 cfu/100ml
90%
90%
90%

2.6 Conservation attractions

2.6.1 Conservation visitor attractions

PURPOSE OF MEASURE
PERFORMANCE MEASURE
2016/17
2017/18
2018–25

To measure the success of our investments in conservation attractions
Wellington Zoo – visitors
239,408
242,520
245,673

Zealandia – visitors
99,300
96,500
98,430

Environment – activity budget

2.1 GARDENS, BEACHES AND GREEN OPEN SPACES
2015/16
LTP
GROSS EXPENDITURE
2016/17
ANNUAL PLAN
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

2.1.1 - Local parks and open spaces
8,756
8,791

2.1.2 - Botanic gardens
4,752
4,724

2.1.3 - Beaches and coast operations
1,409
1,283

2.1.4 - Roads open spaces
8,147
8,712

2.1.5 - Town belts
4,665
4,722

2.1.6 - Community environmental initiatives
743
757

2.1.7 - Walkways
582
604

2.1.8 - Biodiversity (pest management)
1,704
1,824

2.1.9 - Waterfront public space
1,737
4,856

Total operating expenditure
32,494
36,273

Capital expenditure
($000)
($000)

2.1.1 - Local parks and open spaces
1,286
705

2.1.2 - Botanic gardens
433
530

2.1.3 - Beaches and coast operations
227
1,176

2.1.4 - Roads open spaces
-
-

2.1.5 - Town belts
135
248

2.1.6 - Community environmental initiatives
-
-

2.1.7 - Walkways
550
1,014

2.1.8 - Biodiversity (pest management)
-
-

2.1.9 - Waterfront public space
-
-

Total capital expenditure
2,632
3,673

2.2 WASTE REDUCTION AND ENERGY CONSERVATION
2015/16
LTP
GROSS EXPENDITURE
2016/17
ANNUAL PLAN
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

2.2.1 - Waste minimisation, disposal and recycling management
12,836
13,268

2.2.2 - Closed landfills aftercare
522
414

2.2.3 - Energy efficiency and conservation
282
416

Total operating expenditure
13,641
14,098

Capital expenditure
($000)
($000)

2.2.1 - Waste minimisation, disposal and recycling management
1,238
673

2.2.2 - Closed landfills aftercare
-
-

2.2.3 - Energy efficiency and conservation
-
65

Total capital expenditure
1,238
738

2.3 WATER
2015/16
LTP
GROSS EXPENDITURE
2016/17
ANNUAL PLAN
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

2.3.1 - Water network
23,394
24,358

2.3.2 - Water collection and treatment
14,932
15,934

Total operating expenditure
38,327
40,292

Capital expenditure
($000)
($000)

2.3.1 - Water network
16,951
14,915

2.3.2 - Water collection and treatment
-
-

Total capital expenditure
16,951
14,915

2.4 WASTEWATER
2015/16
LTP
GROSS EXPENDITURE
2016/17
ANNUAL PLAN
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

2.4.1 - Sewage collection and disposal network
19,157
20,058

2.4.2 - Sewage treatment
22,654
23,540

Total operating expenditure
41,811
43,598

Capital expenditure
($000)
($000)

2.4.1 - Sewage collection and disposal network
10,481
11,236

2.4.2 - Sewage treatment
-
-

Total capital expenditure
10,481
11,236

2.5 STORMWATER
2015/16
LTP
GROSS EXPENDITURE
2016/17
ANNUAL PLAN
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

2.5.1 - Stormwater management
17,588
18,147

Total operating expenditure
17,588
18,147

Capital expenditure
($000)
($000)

2.5.1 - Stormwater management
4,455
7,020

Total capital expenditure
4,455
7,020

2.6 CONSERVATION ATTRACTIONS
2015/16
LTP
GROSS EXPENDITURE
2016/17
ANNUAL PLAN
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

2.6.1 - Conservation visitor attractions
6,459
6,989

Total operating expenditure
6,459
6,989

Capital expenditure
($000)
($000)

2.6.1 - Conservation visitor attractions
1,316
817

Total capital expenditure
1,316
817

3 Economic development

Whanaketanga ōhanga

The Council attracts and supports business activity; markets Wellington to tourists from New Zealand and overseas; owns and operates performance venues and conference facilities; promotes business, education and cultural links through sister city relationships; and provides free weekend parking in the central business district.

We fund these activities to attract and retain talent, grow the tourism spend and economic returns from events, and increase inward investment and exports.

These activities make Wellington a more vibrant place to live and improve residents’ quality of life, prosperity, identity and the opportunities available to them.

Key projects

City Growth Fund

This fund supports initiatives that will contribute to Wellington's economic growth.

The objective of the fund is to support projects, partnerships and programmes that contribute to the economic growth of the city. Specifically they will:

create and/or retain jobs

increase the rating base

support economic growth in key target sectors

positively contribute to Wellington's GDP and global reputation as a good place to do business.

$2.4 million of funding is available in 2016/17 and it will be focussed on events, initiatives and partnerships.

For more information go to:
http://wellington.govt.nz/services/community-and-culture/funding/council-funds/city-growth-fund

Free Wi-Fi in the central city

CBDFree is a free-to-use, high-capacity wireless service, available through most of Wellington’s central city area. The network is used by large numbers of Wellingtonians as well as visitors to the city and helps support Wellington’s reputation as a technology and visitor-friendly city internationally. The Wi-Fi is provided by CityLink, a local Wellington technology company and $150,000 has been allocated to pay for this in 2016/17.

Business Improvement Districts

The Council adopted its Business Improvement District (BID) policy in March 2013. BIDs involve a local business community within a defined geographical area developing projects and services that support local economic development.

The Kilbirnie Business Network has undertaken a process to determine whether a BID should be established in its area and this culminated in a poll that showed majority support to establish a BID. A new targeted rate, raising $80,000, is to be applied in 2016/17 to commercially rated properties in the Kilbirnie BID area. Liability for this rate will be calculated as a fixed amount of $500 per rating unit, plus a rate per dollar of rateable capital value for any capital value over $1 million per rating unit.

Wellington Regional Economic Development Agency (WREDA)

WREDA is the new regional economic development agency combining the economic development activities of Wellington City Council and Greater Wellington Regional Council to advance the prosperity and liveability of the Wellington region. The new organisational structure for WREDA was finalised in late 2015 and during 2016/17 WREDA will focus its activities on making Wellington the most prosperous, liveable and vibrant region in Australasia.

Movie Museum and Convention Centre

The Council has agreed in principle that it will build and own a modern, purpose-built Movie Museum and Convention Centre on Cable Street, opposite Te Papa. The proposal was consulted on during 2015/16, and if the project receives final approval from Council and The Movie Museum Limited, construction of the Movie Museum and Convention Centre is expected to begin in 2016/17.

Westpac Stadium

We will provide a $5.0m grant to the Wellington Regional Stadium Trust in 2016/17. This funding will be used to support the concourse upgrade to deliver a warmer, more welcoming environment for fans. The upgrade will deliver a consistent look and feel for the concourse that better reflects Wellington, the local community and sporting achievements. This will include more natural lighting, upgraded flooring and improved facilities to deliver an improved fan experience.

Economic development – group of activities

GROUP OF ACTIVITIES
RATIONALE
SERVICE OFFERING
NEGATIVE EFFECTS

3.1 City promotions and business support

3.1.1 WREDA

3.1.2 Wellington Convention Centre

3.1.3 Retail support

3.1.4 City Growth Fund/Economic grants

3.1.5 Major projects – economy

3.1.6 International relations

3.1.7 Business Improvement Districts
Talent attraction and retention

Grow tourism spend and economic returns from events

Grow inward investment and exports

Sustain city vibrancy

Promoting Wellington to visitors

Attracting and supporting major events

Offering convention and concert venues

Building regional and international relations

Attracting and supporting business activity

Exploring major economic development initiatives such as the:

runway extension and airline attraction

Convention Centre

indoor arena

War and Peace museum

We do not anticipate any significant negative effects associated with our role in these services.

Economic development – performance measures

ECONOMIC DEVELOPMENT

Objectives
Tourism spend

Investment attraction/digital exports

City vibrancy

Outcome indicators
Number of domestic and international visitors (guest nights)

Average length of stay – international and domestic

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 growths (net growth in business)

Domestic and international airline passengers entering Wellington airport

Free Wi-Fi usage (logons/day) – waterfront and central city

Pedestrian counts – average of various Lambton Quay sites

Businesses and employees in research and development sector

Secondary (international) and tertiary (international and domestic) students enrolled per 1,000 residents

Events/activities held with international cities (in Wellington and overseas)

3.1 City promotions and business support

3.1.1 WREDA

3.1.2 Wellington Convention Centre

3.1.3 Retail support

3.1.4 City Growth Fund/Economic Grants

3.1.5 Major projects – economy

3.1.6 International relations

3.1.7 Business Improvement Districts

PURPOSE OF MEASURE
PERFORMANCE MEASURE
2016/17
2017/18
2018–25

To measure the quality of our investments in promoting the city
WREDA – Positively Wellington Tourism partnership funding
Maintain the Council's funding at less than 50% of total income
Maintain the Council's funding at less than 50% of total income
Maintain the Council's funding at less than 50% of total income

To measure the usage of Council-supported events
Estimated attendance at Council-supported events
500,000
600,000
700,000

To measure the quality of our investments in economic development
Events Development Fund – ratio of direct spend to economic impact
20:1
20:1
20:1

The proportion of grant funds successfully allocated (through milestones being met)
95%
95%
95%

Economic development – activity budget

3.1 CITY PROMOTIONS AND BUSINESS SUPPORT
2015/16
LTP
GROSS EXPENDITURE
2016/17
ANNUAL PLAN
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

3.1.1 - WREDA
31,560
30,822

3.1.2 - Wellington Convention Centre
-
1,051

3.1.3 - Retail support (free weekend parking)
1,356
1,357

3.1.4 - City Growth Fund, economic growth and economic grants
3,599
3,001

3.1.5 - Major projects – economy
-
5,000

3.1.6 - Regional and external relations
572
661

3.1.7 - Business Improvement Districts
114
194

Total operating expenditure
37,201
42,086

Capital expenditure
($000)
($000)

3.1.1 - WREDA
-
-

3.1.2 - Wellington Convention Centre
2,215
7,011

3.1.3 - Retail support (free weekend parking)
-
-

3.1.4 - City Growth Fund, economic growth and economic grants
-
-

3.1.5 - Major projects – economy
-
-

3.1.6 - Regional and external relations
-
-

3.1.7 - Business Improvement Districts
-
-

Total capital expenditure
2,215
7,011

4 Cultural wellbeing

Oranga ahurea

The Council funds city events and festivals; supports attractions such as Te Papa, Great War Exhibition, Space Place, and the city’s galleries and museums; and supports community art and cultural activities.

The strength of Wellington’s creative culture depends on people; the output of artists, writers, musicians, and dancers; and on the expressiveness of Wellington’s communities.

We fund these activities because they matter to the lives of individual Wellingtonians and to the community as a whole. They contribute to a diverse economy and build on Wellington’s reputation as New Zealand’s arts and culture capital. They also make the city a more vibrant place to live, help develop healthy and connected communities, and improve residents’ quality of life.

Key projects

Cultural grant funding

The Council will continue to encourage and celebrate diversity by supporting arts and cultural events and small arts organisations. We have increased our cultural grants fund starting from 2016/17, which will increase our level of support to the capital’s arts and cultural institutions.

For more information go to:
http://wellington.govt.nz/services/community-and-culture/funding/council-funds/arts-and-culture-fund.

Outdoor Events

A new flagship Outdoor Events series will be launched in 2016/17. The events to be organised focus on the city and will be free and accessible to all. The content will range across a number of creative fields – music, dance, theatre, circus and digital art.

Pukeahu National War Museum Park

This project was a key part of New Zealand’s commemoration of the centenary of the First World War. The new park and Arras Tunnel – which are fantastic additions to the city – were largely funded by the Government. The Council supported the project and worked in partnership with the Ministry of Culture and Heritage and the New Zealand Transport Agency throughout their development.

The park has significantly improved the setting around the war memorial and provides space for the increasing number of people attending major ceremonial occasions such as Anzac Day every year. Year-round, it provides another great park and public space for everyone to enjoy as well as good walking and cycling connections. With assistance from the Government, we will maintain and look after the park from now on.

Circa Theatre

We have budgeted for a grant of $250,000 over the next 3 years to support Circa Theatre and $15,000 per annum over the next 3 years for technical support of external groups using the theatre.

Toi Pōneke

Toi Pōneke Arts Centre and Gallery is a creative space for artists, arts businesses and arts organisations to meet, work, rehearse and exhibit in the heart of the city. For 2016/17, operational funding from the Council will be increased to pay for temporary professional and sector development programmes across different art disciplines, as well as fund the gallery operation. Improvements will also be made to Toi Pōneke’s external signage and artworks.

Cultural wellbeing – group of activities

GROUP OF ACTIVITIES
RATIONALE
SERVICE OFFERING
NEGATIVE EFFECTS

4.1 Arts and cultural activities

4.1.1 City galleries and museums

4.1.2 Visitor attractions (Te Papa/Space Place/Movie Museum)

4.1.3 Arts and cultural festivals

4.1.4 Cultural grants

4.1.5 Access and support for community arts

4.1.6 Arts partnerships

4.1.7 Regional Amenities Fund
The arts:

contribute to a vibrant central city and provide opportunities for cultural expression

build a sense of place and identity

grow visitation and exposure to creativity and innovation

Funding to Te Papa, Wellington Museum, City Gallery, Capital E, the Cable Car Museum, Space Place, Movie Museum and Nairn Street Historic Cottage

Support major events and festivals that generate economic returns

Provide fund grants to arts organisations

Manage the Toi Pōneke Arts Centre and the City Art Collection

Te Aro o Nga Tupuna Heritage Trail and Te Motu Kairangi Plan

We do not anticipate any significant negative effects associated with our role in these services.

Cultural wellbeing – performance measures

CULTURAL WELLBEING

Objectives
Sense of place and identity

Diversity and openness

Visitation

Exposure to creativity and innovation

Outcome indicators
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"

Residents' (%) agreement with the statement that "Wellington is an easy place to get involved in the arts”

Te Papa visitors – total visitors, overseas visitors and NZ visitors from outside the region

Customer (%) satisfaction with the New Zealand Festival

Total tickets sold to the New Zealand Festival and the proportion sold to customers outside the region

Total visits to museums and galleries (including Space Place)

4.1 Arts and Culture Activities

4.1.1 City Galleries and Museums

4.1.2 Visitor attractions (Te Papa/Space Place)

4.1.3 Arts and cultural festivals

4.1.4 Cultural grants

4.1.5 Access and support for community arts

4.1.6 Arts partnerships

4.1.7 Regional Amenities Fund

PURPOSE OF MEASURE
PERFORMANCE MEASURE
2016/17
2017/18
2018–25

To measure the quality and usage of our arts and culture support activities
Attendee satisfaction with Council-supported arts and cultural festivals
90%
90%
90%

User (%) satisfaction with Toi Pōneke facilities and services
90%
90%
90%

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

Proportion of outcomes delivered (previous projects – weighted by $ value)
90%
90%
90%

Venues Subsidy – total number of performers and attendees at supported events
Increase on previous year
Increase on previous year
Increase on previous year

Economic contribution ($) the New Zealand Festival makes to the city’s economy (direct new spend)

$40m every second year

Cultural grants – % first-time applicants who are successful
50%
50%
50%

Cultural wellbeing – activity budget

4.1 ARTS AND CULTURE ACTIVITIES
2015/16
LTP
GROSS EXPENDITURE
2016/17
ANNUAL PLAN
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

4.1.1 - Galleries and museums (Wellington Museums Trust)
9,208
9,585

4.1.2 - Visitor attractions (Te Papa/Space Place/Movie Museum)
2,840
2,917

4.1.3 - Arts and cultural festivals
2,692
3,233

4.1.4 - Cultural grants
858
1,161

4.1.5 - Access and support for community arts
659
767

4.1.6 - Arts partnerships
2,277
2,481

4.1.7 - Regional Amenities Fund
609
609

Total operating expenditure
19,142
20,754

Capital expenditure
($000)
($000)

4.1.1 - Galleries and museums (WMT)
1,914
-

4.1.2 - Visitor attractions (Te Papa/ Space Place /Movie Museum)
180
9,248

4.1.3 - Arts and cultural festivals
-
-

4.1.4 - Cultural grants
100
-

4.1.5 - Access and support for community arts
26
27

4.1.6 - Arts partnerships
-
-

4.1.7 - Regional Amenities Fund
-
-

Total capital expenditure
2,220
9,275

5 Social and recreation

Pāpori me te hākinakina

The Council’s social and recreation work includes providing housing for people in need; funding city safety initiatives; regulating and monitoring food and liquor outlets; preparing to deal with earthquakes and other emergencies; providing community and recreation centres and halls; providing public toilets and cemeteries, pools and libraries; supporting community groups and events; and providing sport and recreation facilities, neighbourhood playgrounds and dedicated areas for our dogs.

We fund these services because they matter to the lives of individual Wellingtonians and to the community as a whole. They help to protect the most vulnerable people, keep people safe and healthy, and strengthen communities.

They provide opportunities for people to live healthy lifestyles, reach their potential, and enjoy themselves.

Key projects

Arlington Apartments upgrade

Arlington Apartments form an important part of the Council’s social housing portfolio and to the wider affordable rental housing capacity in central Wellington. However, most of the units are in poor condition, do not adequately support contemporary standards of living, and are in need of investment if they are to remain operational.

A decision has been made to replace the existing buildings with a new build modular solution. As part of the Housing Upgrade Programme, Arlington East will proceed with $17.9 million being provided by the Council over a number of years for demolition, site works and construction of housing blocks. Arlington West is being treated as a separate project to be undertaken in the future.

Basin Reserve

The Basin Reserve is regarded as one of the New Zealand’s top cricket venues, but faces competition from an increasing number of grounds around the country. The Basin Reserve needs significant investment to address a range of essential maintenance issues and a general upgrade of facilities.

The Basin Reserve Trust has developed a master plan to present a 25-year vision for the future of the ground and $1.6 million is budgeted for 2016/17.

Hockey Stadium artificial turf

Participation in hockey has grown significantly in the last decade, to the point where the National Hockey Stadium in Berhampore is now operating at capacity, with a 95 percent winter utilisation rate. We will install a third artificial turf sportsfield at the National Hockey Stadium to accommodate this growing demand and improve the stadium’s capacity to host hockey tournaments and events. The total cost of this project is $1.5 million and it is planned that it will be ready for use in 2017.

Terawhiti artificial turf

The Council has allocated $740,000 for the development of an artificial playing surface at the former Terawhiti Bowling Club in Karori. This will help the Waterside Karori Association Football Club complete the project during 2016/17.

Johnsonville Library

The new library will be located between Keith Spry Pool and the Johnsonville Community Centre, allowing the three facilities to operate as an integrated community hub. It is likely to include a cafe and possibly other community spaces like a kindergarten, in addition to the library facilities. Design work for the new library has commenced and we have involved the community in the design process.

Community centres and halls

We support a citywide network of community centres that help bring people together, improve and strengthen neighbourhoods, community resilience and community safety. We are planning to upgrade a number of community centres in the coming years to ensure they serve the community’s needs. This year we will begin the planning work for Aro Valley Community Centre and Newtown Community and Cultural Centre with construction starting in 2018/19.

Toitu Pōneke Sports Hub

The Council has provided $750,000 in 2016/17 for the redevelopment of a community and sports hub building at Kilbirnie Park subject to further development of the funding arrangements with the Council, and a wider pool of clubs and groups being able to access to the sports hub building.

School pools fund

Through this contestable fund we partner with schools to increase the total available pool capacity and aquatic programme opportunities throughout the city. Upgrades of school pools at Wellington East Girls College and Rewa Rewa School have started and will finish during 2016/17. Newtown and Kahurangi schools are planning for building work and refurbishment in 2016/17 with support from this fund.

See: http://wellington.govt.nz/services/community-and-culture/funding/council-funds/school-pools-partnership-fund

Freyberg Pool renewal

The Freyberg Pool will be undergoing its 5-yearly maintenance closure, which will see $1.76 million spent on renewing and upgrading the pool and its facilities during 2016/17.

Playground upgrades

We are building a new community playground in the Wakefield Park precinct in Berhampore and undertaking the renewal of playgrounds at:

Lyall Bay Parade play area

Alexandra Road play area in Hataitai

Arlington Road Play Area in Karori

Redwood/Brasenose Reserve play area in Tawa.

Supporting community resilience – Social and Recreation grant funding

This fund aims to foster strong, sustainable communities and support building capacity in the community. For 2016/17 we will prioritise projects that will have a positive social impact on: vulnerable groups, including refugees; street communities and place-based programmes; community and neighbourhood resilience; community safety; and Wellington becoming a UNICEF child and youth friendly city.

See: http://wellington.govt.nz/services/community-and-culture/funding/council-funds/social-and-recreation-fund

Te Mahana programme

Te Mahana is a community-driven strategy focussed on ending homelessness in Wellington. We will continue to work strategically on the further development of partnership approaches to ending homelessness. We are establishing a strategic partnership group to be chaired by the Mayor. This group will focus on an interagency approach to ensure services are aligned and resources are shared.

Dog exercise areas

We propose to construct fences around two dog exercise areas over the next 2 years. $140,000 is budgeted in 2016/17 for dog exercise areas. These areas make it possible to have dogs off their leashes to run free while keeping them and the public safe. Subject to finding suitable sites.

Graffiti management

In our Residents’ Monitoring Survey, 98 percent of Wellingtonians perceive their city to be safe, and we would like to keep it that way. While only 40 percent of our residents voiced concerns about graffiti, the overall perception is that graffiti contributes to people feeling unsafe when walking in town.

Food Act changes

The Food Act 2014 came into effect on 1 March 2016. The Council will implement the changes to its cost recovery model during the year and ensure that the impact of the new Act on one-off charity, school and sports events, and Early Childhood Education Centres is reasonable.

Smokefree Wellington Action Plan

This action plan supports the Government’s goal for New Zealand to be smokefree by 2025. Focus areas for the Council for the year are: extending smokefree outdoor areas; smokefree promotion and community engagement, including smokefree events (smokefree includes cessation support), leadership and advocacy. Areas around the city to become smokefree include Civic Square, bus stops, Council housing, and Council operated community centres, pools, recreation centres, building entrances, and laneways. The goal of the plan is that by 2025, less than 5 percent of Wellingtonians will smoke.

Social and recreation – group of activities

GROUP OF ACTIVITIES
RATIONALE
SERVICE OFFERING
NEGATIVE EFFECTS

5.1 Recreation promotion and support

5.1.1 Swimming pools

5.1.2 Sportsfields

5.1.3 Sportsfields (synthetic)

5.1.4 Recreation centres

5.1.5 Recreation partnerships

5.1.6 Playgrounds

5.1.7 Marinas

5.1.8 Golf course

5.1.9 Recreation programmes
Encouraging active and healthy lifestyles

Enabling participation in sporting and other group activities

Social cohesion

Greater participation with encouragement of greater use of existing facilities

Seven swimming pools for people to learn to swim, exercise, participate in aquatic sports or have fun

Four multi-purpose recreation centres plus the ASB Sports Centre

44 natural and nine artificial sports turfs (two in partnership with schools), eight croquet lawns, Berhampore Golf Course, Newtown Park running track, a velodrome, tennis/netball courts

The Evans Bay Marina and Clyde Quay Boat Harbour

Funding towards the Basin Reserve Master Plan Upgrade

There are negative effects from owning and managing buildings and other assets to deliver these services. These include waste (solid, liquid), direct energy use to operate the building, indirect energy use from people using transport to access them. Our operations are managed so that waste is minimised or recycled and energy and water is conserved. We also encourage the use of public transport, walking and cycling as a means of getting around the city.

Our swimming pools pose the additional risks of drowning. We manage this through a number of steps, most notably through the continuous presence of trained lifeguards. We also offer Learn to Swim programmes.

5.2 Community support

5.2.1 Libraries

5.2.2 Access support

5.2.3 Community advocacy

5.2.4 Grants (Social and Recreation)

5.2.5 Housing

5.2.6 Community centres and halls
Fostering diverse and inclusive communities

Enabling people to connect with information and each other

12 libraries plus an online branch providing access to a wide array of books, magazines, DVDs, e-books and e-audio, online journals, e-music tracks

Community outreach and children’s literacy programmes

Provision of community facilities and services including a citywide network of 18 community centres and community grants

Partnering with key social and health agencies to ensure there is a coordinated approach to address emerging community issues

Support community service providers and programmes to meet the needs of our diverse communities and most vulnerable residents

Housing approximately 4000 people in 2200 units

18 community centres and halls providing services, programmes, spaces for hire, childcare and education services

We undertake these activities to enhance the quality of life of the city’s residents and mitigate social harm.

While there are negative effects from owning and managing buildings and other assets through which the majority of these services are provided, we seek to minimise these negative effects by ensuring our operations are managed effectively and that waste is minimised or recycled and energy and water is conserved.

5.3 Public health and safety

5.3.1 Burials and cremations

5.3.2 Public toilets

5.3.3 Public health regulations

5.3.4 City safety

5.3.5 WREMO
Maintaining health standards

Activities that make people feel safe

Safety (and child friendly)

Cemeteries at Karori and Makara with a crematorium at Karori Cemetery

70 public toilets, beach and sportsfields changing rooms/pavilions

Regulating food and liquor outlets, animal, trade waste and managing environmental noise issues

Maintaining WHO Safe City accreditation

Provide a “city host” service, managing graffiti and supporting community initiatives

These activities exist to mitigate and manage significant risks – from natural disasters, personal safety in the city, to unhealthy food preparation practices.

These activities are necessary to ensure negative effects from other people’s activities or from a natural disaster are controlled and managed.

Social and recreation – performance measures

SOCIAL AND RECREATION

Objectives
Social cohesion

Participation in city life

Greater use of existing facilities

Safety (and child friendly)

Outcome indicators
Residents' usage of City Council community and recreation facilities

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

Housing Services tenants who report positive social contact

Residents' perceptions – city and community safety issues of most concern

Recorded crime and resolution rates – by categories

Number of notifications of the most prevalent food and water-borne diseases

Residents' life expectancy

Food premises – number of cleaning notices and closures per year

Percentage of food premises with an inspection rating of excellent or very good that maintain or improve their inspection rating

Number of uses of Leisure Card

Dog control – complaints received (% of registered dogs)

5.1 Recreation promotion and support

5.1.1 Swimming pools

5.1.2 Sportsfields

5.1.3 Sportsfields (synthetic)

5.1.4 Recreation centres

5.1.5 Recreation partnerships

5.1.6 Playgrounds

5.1.7 Marinas

5.1.8 Golf course

5.1.9 Recreation programmes

PURPOSE OF MEASURE
PERFORMANCE MEASURE
2016/17
2017/18
2018–25

To measure the quality and usage (quantity) of the recreation facilities we provide
User (%) satisfaction – swimming pools
90%
90%
90%

User (%) satisfaction – recreation centres and ASB Sports Centre
90%
90%
90%

User (%) satisfaction – sportsfields (including artificial sportsfields)
85%
85%
85%

Visits to facilities – swimming pools
1.260m
1.277m
Increasing trend

Visits to facilities – recreation centres and ASB Sports Centre
1.06m
1.07m
1.08m

ASB Sports Centre courts utilisation (%)
45%
46%
46%

Sportsfields – % of scheduled sports games and training that take place
Winter 80%
Winter 80%
Winter 80%

Summer 90%
Summer 90%
Summer 90%

Marinas occupancy
96%
96%
96%

Artificial sportsfields % utilisation – peak and off-peak (summer and winter)
Peak Winter 80%
Peak Winter 80%
Peak Winter 80%

Peak Summer 40%
Peak Summer 40%
Peak Summer 40%

Off peak winter 25%
Off peak winter 25%
Off peak winter 25%

Off peak summer 20%
Off peak summer 20%
Off peak summer 20%

5.2 Community support

5.2.1 Libraries

5.2.2 Access support

5.2.3 Community advocacy

5.2.4 Grants (Social and Recreation)

5.2.5 Housing

5.2.6 Community centres and halls

PURPOSE OF MEASURE
PERFORMANCE MEASURE
2016/17
2017/18
2018-25

To measure the quality and usage (quantity) of the housing services we provide
Tenant satisfaction (%) with services and facilities
90%
90%
90%

Tenant rating (%) of the overall condition of their house/apartment (good and very good)
90%
90%
90%

Tenant (%) sense of safety in their complex at night
75%
75%
75%

Occupancy rate of available housing facilities
90%
90%
90%

All tenants (existing and new) housed with policy
98%
98%
98%

To measure the progress of the Housing Upgrade Project
Agreed milestones, design standards and budgets are met in accordance with the agreed works programme and Deed of Grant between the Crown and the Council
To achieve
To achieve
To achieve

To measure the quality and usage (quantity) of our community and recreation support services (including libraries)
Libraries – user (%) satisfaction with services and facilities
90%
90%
90%

E-library – user satisfaction (%) with the online library collection
75%
75%
75%

Accessible Wellington Action Plan initiatives planned for next year
90%
90%
90%

The proportion of grants fund successfully allocated (through milestones being met)
95%
95%
95%

Proportion of outcomes delivered (previous projects) – weighted by $ value
90%
90%
90%

Libraries – residents (%) who are registered members
75%
75%
75%

Libraries – physical visits
2.4m
2.4m
2.4m

Libraries – website visits
2.5m
2.5m
2.5m

Library items issued
3m
3m
3m

Occupancy rates (%) of Wellington City Council Community Centres and Halls
45%
45%
45%

5.3 Public health and safety

5.3.1 Burials and cremations

5.3.2 Public toilets

5.3.3 Public health regulations

5.3.4 City safety

5.3.5 WREMO

PURPOSE OF MEASURE
PERFORMANCE MEASURE
2016/17
2017/18
2018–25

To measure the quality of our public health and safety services and programmes and our timeliness in responding to service requests
Dog control – urgent requests responded to within 1 hour and non-urgent within 24 hours
Urgent 100%
Urgent 100%
Urgent 100%

Non-urgent 99%
Non-urgent 99%
Non-urgent 99%

WCC public toilets – urgent requests responded to within 4 hours and non-urgent within 3 days
Urgent 100%
Urgent 100%
Urgent 100%

Non-urgent 95%
Non-urgent 95%
Non-urgent 95%

WCC public toilets (%) that meet required cleanliness and maintenance performance standards
95%
95%
95%

Percentage of alcohol inspections carried out for medium to very high-risk premises
100%
100%
100%

Percentage of alcohol inspections carried out for medium to very high-risk premises during high trading hours
25%
25%
25%

Graffiti removal – response timeframes met
80%
80%
80%

Social and recreation – activity budget

5.1 RECREATION PROMOTION AND SUPPORT
2015/16
LTP
GROSS EXPENDITURE
2016/17
ANNUAL PLAN
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

5.1.1 - Swimming pools
20,476
20,924

5.1.2 - Sportsfields
3,405
3,514

5.1.3 - Sportsfields (synthetic)
1,354
1,353

5.1.4 - Recreation centres
9,703
9,998

5.1.5 - Recreation partnerships
1,088
1,107

5.1.6 - Playgrounds
737
795

5.1.7 - Marinas
602
673

5.1.8 - Golf course
270
260

5.1.9 - Recreation programmes
282
280

Total operating expenditure
37,916
38,904

Capital expenditure
($000)
($000)

5.1.1 - Swimming pools
2,417
1,853

5.1.2 - Sportsfields
650
905

5.1.3 - Sportsfields (synthetic)
560
1,789

5.1.4 - Recreation centres
260
77

5.1.5 - Recreation partnerships
3,468
1,597

5.1.6 - Playgrounds
414
455

5.1.7 - Marinas
558
141

5.1.8 - Golf course
-
-

5.1.9 - Recreation programmes
-
-

Total capital expenditure
8,325
6,817

5.2 COMMUNITY SUPPORT
2015/16
LTP
GROSS EXPENDITURE
2016/17
ANNUAL PLAN
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

5.2.1 - Libraries
20,843
22,494

5.2.2 - Access support (Leisure Card)
105
102

5.2.3 - Community advocacy
1,279
1,219

5.2.4 - Grants (Social and Recreation)
3,643
4,223

5.2.5 - Housing
25,540
25,104

5.2.6 - Community centres and halls
3,201
3,473

Total operating expenditure
54,611
56,615

Capital expenditure
($000)
($000)

5.2.1 - Libraries
5,627
9,521

5.2.2 - Access support (Leisure Card)
-
-

5.2.3 - Community advocacy
-
-

5.2.4 - Grants (Social and Recreation)
-
-

5.2.5 - Housing
29,121
23,861

5.2.6 - Community centres and halls
154
262

Total capital expenditure
34,902
33,644

5.3 PUBLIC HEALTH AND SAFETY
2015/16
LTP
GROSS EXPENDITURE
2016/17
ANNUAL PLAN
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

5.3.1 - Burials and cremations
1,648
1,655

5.3.2 - Public toilets
2,661
2,962

5.3.3 - Public health regulations
5,276
5,254

5.3.4 - City safety
2,674
2,815

5.3.5 - WREMO
1,337
1,534

Total operating expenditure
13,596
14,220

Capital expenditure
($000)
($000)

5.3.1 - Burials and cremations
635
316

5.3.2 - Public toilets
984
1,621

5.3.3 - Public health regulations
-
-

5.3.4 - City safety
-
-

5.3.5 - WREMO
52
73

Total capital expenditure
1,671
2,010

6 Urban development

Tāone tupu ora

The Council’s urban development work includes urban planning and design, controlling building activity and land use, assessing risks from earthquake-prone buildings, and developing and enhancing public spaces.

Our work helps to make Wellington a compact, vibrant, attractive city in which it is easy to get from place to place, while reducing adverse effects on the environment. It is crucial for people’s health and safety, in the buildings they live and work in, and the public spaces they use. It is vital for the environment because a city with a smaller footprint produces fewer emissions and consumes fewer resources.

The Council’s key roles are to provide public spaces and infrastructure, and to plan and control development so the city can support a strong economy and a high quality of life in an environment that is both attractive and sustainable.

All of our work involves partnerships with developers and home owners who want to build or extend, with commuters who want to get to and from work or school, with businesses taking goods to market and with everyone who lives, works and plays in the city.

Key projects

Urban Development Agency

The Council has agreed to establish an Urban Development Agency to unlock the development potential in the city by removing barriers to development. This year, a detailed proposal for establishment of the agency will be prepared for consideration by the Council on what type of entity the agency will be, its accountability and monitoring arrangements, its funding model, and areas of focus.

Adelaide Road redevelopment

Although Wellington has a vibrant central business district, parts of the inner city remain underdeveloped. By focussing future development on the “growth spine”, linking the northern suburbs to the central city, the Basin Reserve, Newtown and Kilbirnie, we can significantly increase housing supply and create vibrant, new, mixed-use city and suburban areas.

To this end, work will begin this year on the initial planning stage of redeveloping Adelaide Road. Redeveloping the north end of Adelaide Road will deliver a vibrant, mixed-use neighbourhood with high-quality public spaces, rapid bus links, and new developments featuring apartments, workplaces, shops and cafes.

Lombard Lane redevelopment

We are working with others to increase levels of economic activity and pedestrian movement along inner city lanes and streets. These works will include physical improvements such as lighting, paving, planting, creating a new and improved Denton Park and a shared street. Improvements to Lombard Lane are part of this wider programme of street and laneway upgrades and $1.5 million has been budgeted in 2016/17 for this work.

Cable Car Lane redevelopment

The iconic Wellington Cable Car is one of Wellington's most visited tourist attractions and transports approximately 1.2 million passengers per year. At present, Cable Car Lane is difficult to find and requires a refresh for operational and safety reasons. The lane will be upgraded in 2016/17 to align with the Cable Car shutdown between July and October 2016.

Frank Kitts Park upgrade

Frank Kitts Park plays an important role in the city as a gathering place and site for waterfront events. The park was completed in the 1980s, with a design aimed at allowing spectators to safely watch the annual waterfront street car race that ran at the time. The Council is proposing to redevelop the park, re-orienting its focus towards the harbour, including a long-planned Chinese Garden and large areas of open lawn, along with a much improved children’s play area.

The redeveloped park is due for completion in 2018 and will cost $5.5 million over the next 2 years. The redevelopment will create a more diverse and attractive harbour-front space, suitable for a range of uses.

Tawa Town Centre

The Council is currently planning to encourage more medium-density housing to be built in areas that can support high-quality developments. To make sure these areas will continue to be suitable for more housing, the Council is also running a town centre planning programme that provides a vision for the town centre and an action plan to achieve this vision.

The Tawa Town centre upgrade was originally planned for 2019/20 but will now be brought forward to 2016/17 due to community support for an early start. Concept design and costings have been completed. The upgrade will cost $1.0 million.

Urban Activation Fund

The Urban Activation Fund is aimed at transforming Wellington’s streets and laneways with a variety of projects that will enhance the city’s vibrancy and character. This year we will improve Holland Street and Garrett Street, Swan Lane and Cable Car Lane. To build on the success of “pop-up” projects in Bond Street and Civic Square, funding has also been allocated to small-scale activation projects that make the most out of our urban spaces.

Built Heritage Incentive Fund

The Council's Built Heritage Incentive Fund helps owners maintain their heritage buildings. The fund recognises the importance of conserving, restoring, protecting and caring for Wellington's heritage-listed buildings, objects, and buildings in heritage areas as in the Wellington City District Plan Heritage List or Heritage Areas.

Fifteen percent of the fund is reserved for conservation-specific work, while 85 percent is intended for work related to earthquake strengthening. The proposed work should maintain or enhance the building's heritage values. For 2016/17, $1.25 million is budgeted.

See: http://wellington.govt.nz/services/community-and-culture/funding/council-funds/built-heritage-incentive-fund

City resilience

Wellington has been selected as one of the Rockefeller Foundation-pioneered 100 Resilient Cities (100RC). Under the 100RC arrangement, Wellington is provided with support to develop a Resilience Strategy, and to commence implementation. The majority of the development on the strategy work will occur in the 2016/17 financial year, funded by 100RC. The strategy has strong linkages to other Council priorities and outcomes, including infrastructure, economic and social policy areas.

Key themes are likely to include areas such as: adaptation to climate change; earthquake resilience; quality of life and economic prosperity. The themes will be finalised following public engagement through workshops, a survey and interviews.

It is anticipated that the strategy will identify programmes of work and projects that will be presented to the Council as part of the Long-term plan 2018–28 deliberations.

Town Hall strengthening

The Council is working on strengthening and upgrading the Wellington Town Hall, including the potential for a music hub to be established. Victoria University School of Music and the New Zealand Symphony Orchestra are working with the Council to plan an upgrade of the building for their use, as well as other Council uses.

We intend to take the opportunity to adapt the building for the music hub, or other Council uses, as part of the design where it is cost-effective. The work has to provide good value for the long-term benefit of the city and the complexity of the ground conditions and piles required detailed work to provide the best option. We are checking the previous base isolation design and expect to either reuse it or adapt it to take advantage of new technology and market changes.

We plan to present options and costs to the Council at the end of 2016 and start construction during 2017.

To find out more go to:
http://wellington.govt.nz/your-council/projects/earthquake-strengthening-projects/town-hall-strengthening/about-the-project

Placemaking

During the year we will spend up to $155,000 to create public spaces that will attract people. This will include suburban beautification projects and installing heritage building plaques, street identifying signs and historic character pedestrian traffic signs (like those of Kate Sheppard).

Commonwealth Walkway

The Commonwealth Walkway is a network of walkways across the Commonwealth established with the aim of inspiring young people to walk for physical and mental health. We plan to create New Zealand’s first Commonwealth Walkway that will connect 32 monuments, parks, building and historic places along a 9-kilometre loop.

Central city drinking fountains

Three water fountains will be installed in the central business district this year at Midland Park, Civic Square and Lower Cuba Street. This is to provide a healthy drinking option where families and young people congregate.

Urban development – group of activities

GROUP OF ACTIVITIES
RATIONALE
SERVICE OFFERING
NEGATIVE EFFECTS

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

6.1.1 Urban planning and policy development

6.1.2 City Shaper development

6.1.3 Public spaces and centres development

6.1.4 Built heritage development
Smart growth/urban containment

Resilience

Character protection

Guiding where and how the city grows through the District Plan

Maintaining Wellington’s sense of place and pride by preserving the city’s heritage and developing public spaces including the waterfront

Key projects include:

Frank Kitts Park upgrade

Adelaide Road regeneration

Kent and Cambridge terraces urban regeneration project

Population growth and urban development, if not well managed, can have negative effects on a city’s environment and on social wellbeing. Left unchecked, growth can result in a reduction of open and green spaces with consequences for recreational opportunities, amenity and even some ecosystems.

Development in the wrong areas, or the wrong types of development, can place strain on infrastructure and reduce people’s ability to access services and enjoy the opportunities the city offers. Poorly-planned growth and poor development and construction of individual buildings can reduce the attractiveness of the city and the “sense of place” that people identify with and it can have a direct impact on people’s safety. We aim to avoid or mitigate these negative effects by guiding future development into areas where the benefits are greatest and the negative effects least.

The tools we use include planning, working with landowners, direct investment in development of public spaces, and using our regulatory powers under legislation such as the Building Act and Resource Management Act.

6.2 Building and development control

6.2.1 Building control and facilitation

6.2.2 Development control and facilitation

6.2.3 Earthquake risk mitigation – built environment

Ensuring buildings are safe in accordance with the Building Act

Ensuring natural resources are used sustainably in line with the Resource Management Act

These activities exist to mitigate and manage risks from development, construction, weather-tight building problems and from earthquakes.

Development and construction, if not well managed, can have negative effects on a city’s environment and on social wellbeing, and on the safety of individuals.

Development in the wrong areas, or the wrong types of development, can place strain on infrastructure and reduce people’s ability to access services and enjoy the opportunities the city offers.

Poorly-planned growth, and poor development and construction of individual buildings, can reduce the attractiveness of the city and the “sense of place” that people identify with and it can have a direct impact on people’s safety.

Our quake-prone building assessment programme is focussed on ensuring quake-prone buildings are strengthened to required standards to ensure the safety of those that occupy the building and its surrounds.

Urban development – performance measures

URBAN DEVELOPMENT

Objectives
Smart growth/urban containment

Resilience

Character protection

Outcome Indicators
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 centre as an easy place to get to, use and enjoy

Residents’ perceptions of urban design/urban form safety issues (eg graffiti, vandalism, poorly lit public spaces, etc)

Building density throughout the city

Proportion of houses within 100m of a public transport stop

Residents’ perceptions that heritage items contribute to the city and local communities' unique character

New Zealanders’ perceptions that Wellington is an attractive destination

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

6.1.1 Urban planning and policy development

6.1.2 City Shaper development

6.1.3 Public spaces and centres development

6.1.4 Built heritage development

PURPOSE OF MEASURE
PERFORMANCE MEASURE
2016/17
2017/18
2018–25

To measure the quality of our urban planning, heritage protection and development work
Residents (%) who agree the city is developing in a way that maintains high quality design
Increase from previous year
Increase from previous year
Increasing trend

District Plan listed items that are removed or demolished
Nil
Nil
Nil

Residents (%) who agree the central city is lively and attractive
87%
87%
87%

Residents (%) who agree their local suburban centre is lively and attractive
60%
60%
60%

Residents (%) who rate their waterfront experience as good or very good
90%
90%
90%

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

Residents (%) who agree heritage items are appropriately valued and protected
65%
65%
65%

6.2 Building and development control

6.2.1 Urban planning and policy development

6.2.2 City Shaper development

6.2.3 Public spaces and centres development

6.2.4 Built heritage development

PURPOSE OF MEASURE
PERFORMANCE MEASURE
2016/17
2017/18
2018–25

To measure the timeliness of our building and development control services
Building consents issued within 20 working days
100%
100%
100%

Code of Compliance Certificates issued within 20 working days
100%
100%
100%

Land Information Memorandums (LIMs) issued within 10 working days
100%
100%
100%

Resource consents (non-notified) issued within statutory timeframes
100%
100%
100%

Resource consents that are monitored within 3 months of project commencement
90%
90%
90%

Subdivision certificates – Section 223 certificates issued within statutory timeframes
100%
100%
100%

Noise control (excessive noise) complaints investigated within 1 hour
90%
90%
90%

Environmental complaints investigated within 48 hours
98%
98%
98%

To measure the quality of our building and development control services
Customers (%) who rate building control services as good or very good
70%
70%
70%

Building Consent authority (BCA) accreditation retention (2-yearly)
n/a
To retain
n/a

To measure our progress on earthquake risk mitigation
Earthquake-prone building notifications (section 124) (%) that are issued without successful challenge
95%
95%
95%

Urban development – activity budget

6.1 URBAN PLANNING, HERITAGE AND PUBLIC SPACES DEVELOPMENT
2015/16
LTP
GROSS EXPENDITURE
2016/17
ANNUAL PLAN
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

6.1.1 - Urban planning and policy
2,277
2,094

6.1.2 - Waterfront development
972
1,326

6.1.3 - Public spaces and centres development
2,169
2,224

6.1.4 - Built heritage development
1,498
1,998

Total operating expenditure
6,916
7,642

Capital expenditure
($000)
($000)

6.1.1 - Urban planning and policy
-
-

6.1.2 - Waterfront development
6,843
6,390

6.1.3 - Public spaces and centres development
1,425
4,163

6.1.4 - Built heritage development
-
-

Total capital expenditure
8,268
10,553

6.2 BUILDING AND DEVELOPMENT CONTROL
2015/16
LTP
GROSS EXPENDITURE
2016/17
ANNUAL PLAN
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

6.2.1 - Building control and facilitation
13,809
13,624

6.2.2 - Development control and facilitation
5,981
5,971

6.2.3 - Earthquake risk mitigation – built environment
1,710
1,056

Total operating expenditure
21,500
20,651

Capital expenditure
($000)
($000)

6.2.1 - Building control and facilitation
-
-

6.2.2 - Development control and facilitation
-
-

6.2.3 - Earthquake risk mitigation – built environment
5,940
3,041

Total capital expenditure
5,940
3,041

7 Transport

Waka

Key projects

Bus priority planning

Wellington already has a number of bus lanes and other bus priority measures in place that are working well, but the city will need more. Bus priority measures give buses priority over other traffic and the Council, in conjunction with Greater Wellington Regional Council, plan to gradually expand the range and scope of bus priority measures.

Cycleway planning and implementation

Like other well-connected cities, we plan to improve the city’s cycling network. A better cycling network would encourage uptake of cycling as a transport mode, increase the health of participants, increase the carrying capacity of the city’s roads, reducing congestion and helping to lower the city’s emission profile.

Implementing cycleways in Wellington has its challenges because we are retrofitting them into established streets. Because of the city’s narrow and winding streets, some road or footpath space must be reallocated. This may mean prioritising cycle lanes or cycle parking over other on-street uses in some areas.

The planned network will span the city, with routes connecting suburbs to the central city. The plan is to roll it out over the next 10–15 years. In the coming year, subject to a joint NZTA /WCC review of the cycle programme, the focus will be on narrowing down options for the eastern suburbs, reviewing the Island Bay cycleway, and progressing the Hutt Road cycleway (see below).

Hutt Road cycleway

Wellington’s busiest cycle route, and one of its busiest bus corridors, will be made safer and more efficient with a new cycleway and transport improvements planned for the Hutt Road between Ngauranga and the central city. Work is scheduled to start this year and will be completed in 2018.

We have plans to build a new high-quality cycle path/footpath to make this route safer for pedestrians, cyclists and motorists. Two-thirds of the indicative $9 million cost will be paid by the Government through the new Urban Cycleways Fund and the National Land Transport Fund. The Council’s budgeted share is $3.1 million.

Ngauranga to Airport

The Ngauranga to Airport project aims to improve the flow of traffic through Wellington City. As part of this project in 2016/17 we will be undertaking a number of small projects at the cost of $375,000 to improve pedestrian flow in the central business district. In addition, the proposal to lower the speed limits within the central city is being re-examined with possible implementation to occur within the 2016/17 year.

Safer speeds

The Council proposes to reduce vehicle speeds in key suburban areas of the city. Studies show that reducing vehicle speeds significantly reduces the number and severity of injuries. It is expected that there will be little effect on motorists’ travel times. The cost for 2016/17 for the safer speeds project is $1.3 million.

Parking sensors

We are implementing the use of smart technology to make it easier for people to find car parks and pay for parking. Wireless sensors fitted into the road surface can provide information on whether a car park is occupied. This information can be used to tell drivers where car parks are available, as well as the price for parking. The sensors can be incorporated with online payment systems, making it easy for drivers to pay for their parking, and ensuring they only pay for the time they use. We plan to spend $380,000 on implementing this technology during 2016/17.

Parking officers

Parking Services was brought in-house in 2014 and as a result of the positive outcomes, demand for parking services has grown. In order to provide service levels similar to those from when the function was outsourced, additional staff are now required to meet this demand. The increase in staffing levels will enable the continuation of quality service levels, including supporting the implementation of parking sensors.

Cable Car

As part of the Cable Car’s maintenance programme we will be providing funding for the replacement of the drive mechanism in the coming year.

Transport – group of activities

GROUP OF ACTIVITIES
RATIONALE
SERVICE OFFERING
NEGATIVE EFFECTS

7.1 Transport

7.1.1 Transport planning

7.1.2 Vehicle network

7.1.3 Cycle network

7.1.4 Passenger transport network

7.1.5 Pedestrian network

7.1.6 Network-wide control and management

7.1.7 Road safety
Increased active mode share

Road safety

Reliable transport routes

Reduced emissions

54 road bridges (road and pedestrian) and five tunnels

2397 walls, 450 bus shelters and 18,000 street lights

24.3km of cycleways

858km of pedestrian paths, 680km of road pavements

132km of handrails, guardrails and sight rails

1500 hectares of road corridor land

21,500 signs and traffic signals

Lincolnshire Farm link roads

Cycleways

With any transport system, the potential negative effects are significant. In particular, there are environmental costs, ranging from air and noise pollution to surface water run-off from roads that may carry contaminants (by-products of tyres, brakes and engines and deposition from exhaust gases) into the stormwater system. This environmental impact is linked to the number of vehicles on the road; however, the dominant impact is the surrounding land uses, which direct stormwater run-off to the road. There are also potential negative effects from individual projects: for example, construction of any new road has effects on neighbours and neighbourhoods.

Dealing with these effects is complex. Some issues, such as vehicle emission standards, are properly dealt with at a national level. Others, such as air and water quality, are regional issues. Of those issues that can be dealt with at a local level, we seek to reduce the cause of the negative effects where possible. At present there are few statutory requirements for road controlling authorities to mitigate contaminants in road run-off before it is discharged to the receiving environment.

This Council does monitor the effects of stormwater run-off on aquatic receiving environments to ensure that adverse effects are avoided, remedied or mitigated.

Other potentially significant negative effects we must consider include:

The timing of road works and other improvements. These can impact on local businesses but may also affect growth opportunities. Our transport planning is designed to minimise the impact and focus our work in growth areas.

Safety. The transport network brings pedestrians, cyclists and vehicles together. This presents hazards to users. We’ve developed road safety programmes and design solutions to reduce the likelihood and severity of accidents.

7.2 Parking

7.2.1 Parking
Enabling people to shop, work and access recreation activities

12,000 on-street parking spaces, 3400 of which are in the central city

Street spaces for taxis, couriers, people with disabilities, bus stops and diplomatic services

Managing off-street parking at Clifton Terrace, the Michael Fowler Centre and beneath Civic Square

Transport – performance measures

TRANSPORT

Objectives
Increased active mode share

Road safety

Reliable transport routes

Reduced emissions

Outcome indicators
Residents’ perceptions that peak traffic volumes are acceptable

Residents’ perceptions that the transport system allows easy access to the city

Residents’ perceptions of quality and affordability of public transport services

Air quality monitoring (ie nitrogen dioxide, carbon monoxide, and particulate matter peaks)

Change from previous year in the number of road crashes resulting in fatalities and serious injury*

Social cost of crashes

Residents’ perceptions of transport related safety issues (ie issues of most concern)

Number of cyclists and pedestrians entering the central city (weekdays)

Residents (%) who agree the transport system allows easy movement around the city – vehicle users and pedestrians

7.1 Transport

7.1.1 Transport planning

7.1.2 Vehicle network

7.1.3 Cycle network

7.1.4 Passenger transport network

7.1.5 Pedestrian network

7.1.6 Network-wide control and management

7.1.7 Road safety

PURPOSE OF MEASURE
PERFORMANCE MEASURE
2016/17
2017/18
2018–25

To measure the quality and timeliness of the transport infrastructure and service
Residents’ condition (%) rating of the network – roads and footpaths (good or very good)
Roads: 75%
Roads : 75%
Roads: 75%

Footpaths: 75%
Footpaths: 75%
Footpaths: 75%

Requests for service response rate – urgent (within 2 hours) and non-urgent (within 15 days)*
Urgent: 100%
Urgent: 100%
Urgent: 100%

Non-urgent: 100%
Non-urgent: 100%
Non-urgent: 100%

Roads (%) that meet smooth roads standards (smooth roads – measured by Smooth Travel Exposure based on NAASRA counts)*
70%
70%
70%

Footpath (%) condition rating (measured against WCC condition standards)*
97%
97%
97%

Street lighting (%) for major roads (arterial, principal and collector roads) meets national standards
100%
100%
100%

Residents’ satisfaction (%) with street lighting in the central city and suburban areas
Central: 85%
Central: 85%
Central: 85%

Suburbs: 75%
Suburbs: 75%
Suburbs: 75%

Sea wall and retaining wall condition rating – walls (%) rated 3 or better (1 very good, 5 very bad)
90%
90%
90%

Percentage of the sealed local road network that is resurfaced*
10%
10%
10%

*DIA Mandatory measure

7.2 Parking

7.2.1 Parking

PURPOSE OF MEASURE
PERFORMANCE MEASURE
2016/17
2017/18
2018–25

To measure the quality of our parking provision
On-street car park turn-over rates – weekdays and weekends
Week: 6.8
Week: 6.8
Week: 6.8

Weekend: 5.275%
Weekend: 5.275%
Weekend: 5.275%

On-street car park average occupancy
Time: 95%
Time: 95%
Time: 95%

On-street car park compliance – time restrictions and payment
Payment: 90%
Payment: 90%
Payment: 90%

Residents’ perceptions (%) that parking enforcement is fair
Increase from previous year
Increase from previous year
Increase from previous year

Transport – activity budget

7.1 TRANSPORT
2015/16
LTP
GROSS EXPENDITURE
2016/17
ANNUAL PLAN
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

7.1.1 - Transport planning
1,144
2,651

7.1.2 - Vehicle network
22,645
24,101

7.1.3 - Cycle network
1,660
1,376

7.1.4 - Passenger transport network
1,720
2,450

7.1.5 - Pedestrian network
6,548
7,061

7.1.6 - Network-wide control and management
6,799
7,525

7.1.7 - Road safety
6,095
6,353

Total operating expenditure
46,612
51,517

Capital expenditure
($000)
($000)

7.1.1 - Transport planning
-
-

7.1.2 - Vehicle network
23,017
21,558

7.1.3 - Cycle network
5,673
7,522

7.1.4 - Passenger transport network
145
888

7.1.5 - Pedestrian network
4,583
4,671

7.1.6 - Network-wide control and management
2,804
2,380

7.1.7 - Road safety
2,352
3,538

Total capital expenditure
38,573
40,557

7.2 PARKING | 2015/16LTPGROSS EXPENDITURE | 2016/17ANNUAL PLANGROSS EXPENDITURE
Operating expenditure | ($000) | ($000)
7.2.1 - Parking | 13,404 | 13,925
Total operating expenditure | 13,404 | 13,925
Capital expenditure | ($000) | ($000)
7.2.1 - Parking | 1,449 | 496
Total capital expenditure | 1,449 | 496

8 Council controlled organisations (CCOs)

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 deliver significant services and undertake developments on behalf of the Wellington community. The following table explains what these organisations do and how their performance is measured.

Wellington Regional Stadium Trust

Structure
Objectives
Activities
PERFORMANCE INDICATORS

All of the trustees are jointly appointed by the Council and Greater Wellington Regional Council (GWRC).

As at 1 January 2016, they are John Shewan (Chair), Therese Walsh, Councillor Nigel Wilson (GWRC), Susan Elliott, Steven Fyfe, Mark McGuinness, Rachel Taulelei and Councillor Simon Marsh (WCC).

The Chief Executive is Shane Harmon.
The Wellington Regional Stadium Trust owns, operates and maintains the Stadium as a highquality multipurpose 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.
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

Total revenue

Event revenue

Net surplus

Note: The Wellington Regional Stadium Trust is not formally defined as a Council controlled organisation. This plan for their activities is presented to recognise the interest that Wellington City ratepayers have in the Trust and its activities.

Wellington Regional Economic Development Agency Limited

Structure
Objectives
Activities
PERFORMANCE INDICATORS

WREDA is the new regional economic development agency, combining the economic development activities of Wellington City Council and the Greater Wellington Regional Council into one organisation.

Wellington City Council is an 80% shareholder, and Greater Wellington Regional Council is a 20% shareholder.

As at 1 January 2016, the board members are Peter Biggs (Chair), Helen Anderson, Matt Clarke, Sarah Gibbs, Prof Grant Guilford, Richard Laverty, Paul Mersi, Thomas Pippos, Dave Gibson and Lorraine Witten.

The Chief Executive is Chris Whelan.
WREDA is a new economic development agency that brings together the region’s economic development agency (Grow Wellington) with existing city tourism (Positively Wellington Tourism) and venues (Positively Wellington Venues) agencies, and Wellington City Council’s major events activities.

The benefits to the region of a single agency include: one voice, clearer focus, better use of resources, and improved scale and capacity.
WREDA combines the activities and functions of four business units, previously located within, and supported by, Wellington City Council and Greater Wellington Regional Council – Grow Wellington (the region’s economic development agency) and its subsidiary, Creative HQ; Positively Wellington Tourism; and Positively Wellington Venues. WCCs Major Events unit will transfer to WREDA in 2016/17.
As set out in their SOI and including:

major events over the entire portfolio will achieve an economic benefit for every dollar invested

maintain Wellington’s Convention and Incentive market share (of the multi-day conference market) within the NZ market

number of direct Australian visitor arrivals will exceed 2015/16 levels

increase the number of international students studying in Wellington

Wellington Museums Trust

Structure
Objectives
Activities
PERFORMANCE INDICATORS

All trustees are appointed by the Council.

As at 1 January 2016, they are Jackie Lloyd (Chair), Councillor Nicola Young, Jane Wrightson, Rachel Farrant, and Jill Wilson.

The Chief Executive is Pat Stuart.
The Wellington Museums Trust (WMT) was established in 1995 to promote and manage the City Gallery, The Wellington Museum, the Nairn Street Cottage, Capital E, the Wellington Cable Car Museum, and Space Place.

WMT manages its facilities; establishes exhibition programmes and education policies for its facilities; and develops acquisition, deaccession and collection development policies for its collections and artefacts.

Deliver high-quality experiences, events and exhibitions at its facilities

Manage conservation and care for the objects of its collections, and conduct research and development to enhance visitors’ experiences

Offer quality education experiences to children and young people

Promote and protect the heritage of venues

Work with national and international artists and collectors

Attendance:

City Gallery

Capital E

Wellington Museum

Cable Car Museum

Space Place

Subsidy per visitor

Revenue per visitor

Total ownership cost to Council

Percentage of visitors who rate the quality of their experience as good or very good

Percentage of visitors that are repeat visitors

Wellington Cable Car Limited

Structure
Objectives
Activities
PERFORMANCE INDICATORS

The Council is the 100% shareholder in this company and appoints all of the directors.

As at 1 January 2016, they are Council officers Anthony Wilson and Andy Matthews.

The Chief Executive is Simon Fleisher.

The external Board of Wellington Cable Car Limited was disestablished on 1 April 2014.
Wellington Cable Car Limited owns and operates the Cable Car.

It also owns and maintains the overhead wiring system for the trolley bus passenger network which services the city.

Maintain 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

Market and manage the Cable Car passenger service operation

Manage the contract for the inspection, maintenance and repair of the trolley bus overhead wiring system

Cable Car passenger numbers

Cable Car service reliability

Percentage of users who rate the standard and operational reliability of the Cable Car as good or very good

Wellington Water Limited

Structure
Objectives
Activities
PERFORMANCE INDICATORS

Wellington Water was established in September 2014 and was formed by the merger of Greater Wellington Regional Council’s water supply group with Capacity Infrastructure Services, which was owned by Hutt, Porirua, Upper Hutt and Wellington city councils. The five local authorities are joint and equal owners of Wellington Water.

Each council owns its respective water, stormwater and wastewater assets and determines the level and standard of services to be provided to its customers and ratepayers.

As at 1 January 2016, the Directors are John Strahl (Chair), Nicki Crauford, Cynthia Brophy, David Wright and David Benham.

The Chief Executive is Colin Crampton.
To manage the provision of water services (water supply, stormwater and wastewater) to the residents and businesses in the areas served by its customers

Wellington Water’s customers are Wellington City Council, Hutt City Council, Porirua City Council, Upper Hutt City Council and Greater Wellington Regional Council.
Provide high-quality, safe and environmentally sustainable services to shareholding councils and other customers with a focus on contracted service delivery for the operation, maintenance and on-going development of drinking water, stormwater and wastewater assets and services, and asset management planning.

Provide a reliable water supply, wastewater and stormwater management service

Deliver budgeted capital expenditure projects for its shareholding councils

Deliver budgeted operating and maintenance activities for its shareholding councils

Comply with relevant standards, legislation and resource consents

Wellington Zoo Trust

Structure
Objectives
Activities
PERFORMANCE INDICATORS

The Wellington Zoo Trust was established on 1 July 2003 and all of the trustees are appointed by the Council.

As at 1 January 2016, they are Craig Ellison (Chair), Frances Russell, Linda Meade, Raewyn Bleakley and Councillor Sarah Free.

The Chief Executive is Karen Fifield.
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 plant and 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

Total ownership cost to the Council

Average income per visitor

Ratio of generated Trust income as % of WCC grant

Basin Reserve Trust

Structure
Objectives
Activities
PERFORMANCE INDICATORS

There are four trustees, of whom two are appointed by the Council and two by Cricket Wellington.

As at 1 January 2016, the two trustees appointed by the Council are Councillor Paul Eagle and Sir John Anderson (Chair). The two trustees appointed by Cricket Wellington are Michael Horsley and John Greenwood.

The Chief Executive is Peter Clinton.
The Basin Reserve Trust manages and operates the Basin Reserve to continue to attract national and international sporting events to Wellington.

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

other sports

community

Number of event days:

cricket

other sports

community

Attendance figures

Lambton Harbour Management Limited (Trading As Wellington Waterfront Limited)

Structure
Objectives
Activities
PERFORMANCE INDICATORS

The Council is the 100% shareholder in this company and appoints all of the directors.

As at 1 January 2016, they are Council officers Kevin Lavery (chair), Derek Fry, Andy Matthews and Greg Orchard.

The external Board of Wellington Waterfront Limited was disestablished on 1 April 2014.
Wellington Waterfront Limited holds the assets of the Wellington Waterfront project (as defined in the Wellington Harbour Board and Wellington City Council Vesting and Empowering Act 1987) as bare Trustee for the Council.
Wellington Waterfront Limited functions as a holding company for Waterfront assets.
Not applicable

The day-to-day operations formerly delivered by Wellington Waterfront Limited were transferred to the Council, with the activities for each year detailed within the annual Waterfront Development Plan.

Wellington Waterfront Development Plan – 3 years (2015/16–2017/18)

Context

The Waterfront Development Plan (WDP) outlines the Council’s work programme to implement the objectives of the Wellington Waterfront Framework (2001)1 . The WDP is required by the framework and is the way the Council develops the work plan for the waterfront and approves funding for the waterfront project.

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. By consulting on the draft WDP (alongside the draft Long-term plan) the Council obtains community feedback and views on its plans for the waterfront and associated funding. Depending on the project, there will be further opportunity for consultation and obtaining feedback and views prior to the Council making final decisions on whether a particular project will proceed. In addition, most applications for resource consent are publicly notified so that provides a further opportunity for public engagement and input.

This WDP covers the 3-year period from 1 July 2015. This is the first annual review of the current 3-year plan.

What is planned for years 2 and 3 of the current 3-year plan

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.

The following key projects are planned for years 2 and 3 of the current plan.

The Promenade: Development of the promenade as the spine that connects the waterfront is on-going. The proposed redevelopment of the North Kumutoto public space, which will coincide with the proposed redevelopment of site 10, will not only significantly improve the promenade for pedestrians and cyclists but also improve connectivity with CentrePort and the stadium to the north.

Subject to resource consent for the Site 10 building and adjacent public space, including the promenade being obtained, works will commence in 2016/17 and will be completed in 2017/18.

Refer to North Kumutoto below for further detail, including budget amounts.

Seawall and wharf maintenance: Many of the waterfront’s wharves are timber structures that are over 100 years old and require periodic maintenance to ensure they are kept to a satisfactory standard to provide sufficient levels of service appropriate to their use.

Seawalls are also critical assets, many of which date back to the early 1900s and are heritage listed as important links with Wellington’s past. The redevelopment of public space on the waterfront often provides the opportunity to undertake remedial work identified in periodic condition surveys these assets.

Further maintenance of these essential elements of the waterfront is planned for each year of the current triennium as follows:

Capex Budget ($000) | 2016/17 | 2017/18
| $829 | $1,579

Taranaki Street Wharf Precinct: The start of construction of a public toilet and change facility to complement the popular jump platform has been delayed to the first 2 months of the 2016/17 financial year. The previously proposed scope of work has been reduced and the resulting $300,000 budget saving has been re-allocated to the inclusion of a new kiosk and toilet facility in the southern end of TSB Arena to service the adjacent Frank Kitts Park children’s play area. Work is programmed to be undertaken in Quarter 1 of the 2016/17 financial year.

Capex Budget ($000): | 2016/17 | 2017/18
| $100 | $0

Frank Kitts Park Precinct: Successive Waterfront Development Plans, since 2007, have signalled the proposed redevelopment of Frank Kitts Park.

The Council approved the Garden of Beneficence design for the proposed redevelopment of Frank Kitts Park in December 2007. The design included redevelopment of the children’s playground; the lawn; and construction of the Chinese Garden, subject to the Wellington Chinese Garden Society (WCGS) meeting the costs of the Chinese Garden and Council costs being met from commercial proceeds. The project did not progress for many years due to the global financial crisis and delays in the WCGS’s fundraising.

The plan is to implement the agreed Garden of Beneficence concept design, which anticipates redevelopment of Frank Kitts Park in three parts – the Chinese Garden, the main lawn and the children’s playground. Further development of the design of the Garden of Beneficence will follow confirmation of funding.

Chinese Garden

The Wellington Chinese Garden Society and sister cities Beijing and Xiamen are funding the Chinese Garden element of the project.

Children’s playground

Revision of the children’s playground design was referred to user group consultation and feedback in mid-2014 and wider public consultation on the WDP in 2015. The resulting suggested improvements will be incorporated at the detailed design stage.

The lawn

Further consideration will be given to the central main lawn area, ensuring appropriate integration with the playground and Chinese Garden, including spaces that are protected from weather elements to optimise casual lunchtime use as well as suitable events space.

An application for resource consent for the redevelopment of Frank Kitts Park was lodged in May 2016 and is subject to public notification until 1 July 2016. A resource consent is expected to be granted in September 2016 and, subject to confirmation of external funding of the Chinese Garden, construction is intended to commence in April 2017 and take 12 months to complete. Capex sums and timing are as follows:-

Capex Budget ($000): | 2016/17 | 2017/18
| $1,000 | $4,300

Queens Wharf Precinct: Master planning for this area was completed and presented to the Council in 2011. With the exception of conversion of Shed 6 to the temporary convention centre, nothing has been progressed in the intervening period. The external refurbishment of Shed 6 and TSB Arena previously planned to be fully complete in the 2015/16 financial year will now not be fully complete until Quarter 1 of the 2016/17 financial year.

Capex Budget ($000): | 2016/17 | 2017/18
| $1,100 | $0

Following public consultation in early 2015 on a proposal to develop a commercial helicopter facility on the southern end of the outer-T along the lines of that proposed in the 2009 Blue Skies Ideas Competition, the Council’s preliminary investigations indicate that the costs of the required wharf strengthening will make the financial viability of this proposal challenging.

Kumutoto Precinct: Willis Bond and Co confirmed the development and lease agreement for Site 10 unconditional in May 2016 and following completion of subdivision, issuing of a new title and Willis Bond payment of deposit, the site was handed over to Willis Bond and its building contractor LT McGuinness for commencement of construction in June 2016.

The Council and its public space designer are advancing the developed design for the North Kumutoto public space prior to lodging an application for building consent and expected start of public space redevelopment work in late 2016.

Willis Bond and Co and the Council intend to complete the development of the building and North Kumutoto public space by mid-2018.

Capex Budget ($000): | 2016/17 | 2017/18
| $1,600 | $3,000

Motorhome Park: The proposed relocation of the Wellington Waterfront Motorhome Park to adjacent CentrePort-owned land to enable redevelopment of Site 10 did not proceed as planned due to the higher than budgeted cost of the relocation, resulting in this project not being viable.

Capex Budget ($000): | 2016/17 | 2017/18
| $0 | $0

Other capital renewals and general planning: An ongoing programme of repairs and maintenance, capital expenditure and renewals relating mainly to addressing seismic and resilience issues, public space lighting, bridge painting and historic wharf cranes repainting will be ongoing throughout the period in accordance with the Waterfront Operation’s Asset Management Plan.

Capex Budget ($000): | 2016/17 | 2017/18
| $300 | $200

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.

The framework has set seven objectives 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.

Annual surveys of public opinion consistently show satisfaction and approval ratings in excess of 90 percent. We will continue to strive to maintain and improve these ratings.

Design outcomes will continue to be monitored by the Council’s Technical Advisory Group (TAG), an independent provider of design advice for the Council. Drawing on the architecture, landscape architecture and urban design expertise of its members, TAG ensures that the framework principles have been applied consistently in the design of buildings and public spaces2.

We will also continue to put increased emphasis on our place-making activities to create an even stronger sense of place through:

a diverse offering of activities and development

improved access along the waterfront and between the city and the harbour

an evolving waterfront experience that is mindful of its historic past and its future

a consultative process that encourages participation by interested and affected groups and individuals.

1 The principles and objectives of the Wellington Waterfront Framework were reviewed by the Council in 2011 and endorsed as still being a relevant and appropriate blueprint for the future of the waterfront.

2 TAG was appointed by the Council in 2001 to ensure that Council decisions comply with the framework. TAG has specific advisory and recommendatory roles and functions and is also delegated decision-making on certain public space proposals.

Part C: Financial information

Our finances

Financial overview

Your rates

For 2016/17, total rates are to increase by 4.8 percent before allowing for growth of 1.2 percent in our ratepayer base. After allowing for expected growth, our total rates are to increase by 3.6 percent.

Rates on the average residential property (valued at $570,745) are expected to increase by 5.4 percent to $2,317 (excluding GST) in 2016/17. An average rates increase of around 2.7 percent for commercial properties is expected, this includes the impact of increases in metered water charges in 2016/17. These increases average to a 3.6 percent rates impact over all ratepayers, after growth in the ratepayer base has been taken into account.

2016/17 | Sector
| Residential | Commercial
Average property value | $570,745 | -
Average rates | $2,317 | -
Average rates increase (after growth) | 5.4% | 2.7%

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 assessed 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 2016/17, the commercial sector general rate per dollar of capital value is to remain at 2.8 times 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 business improvement district (BID) for the Miramar, Khandallah and Kilbirnie business districts.

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.

The Council is on a 3-yearly valuation cycle and for the 2016/17 rating year the September 2015 valuations will be used to distribute the total rates requirement across all rateable properties.

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 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 or scale 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

A new targeted rate for the Kilbirnie Business Improvement District under the terms of the Business Improvement District Policy, for $80,000 (excluding GST) will be applied to commercially rated properties in the Kilbirnie Business Improvement District area.

Liability for this rate will be calculated as a fixed amount of $500 (excluding GST) per rating unit, plus a rate per dollar of rateable capital value for any capital value over $1 million per rating unit.

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)

if the beneficiary be easily identified

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

intergenerational equity (ie the period in or over which those benefits are expected to occur are when the rates impost is to be received)

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 2016/17 we propose to make no changes to the policy.

User charges

For 2016/17, user charges are increasing in a number of areas. Our fees are set in accordance with our Revenue and Financing Policy. The areas where fees are changing are as follows:

burials and cremation

trade waste

landfill

swimming pools

recreation centres

public health regulations.

Understanding the Council’s budgeted surplus

The Council is forecasting a net operating surplus of $12.8 million in 2016/17. 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 that we have resolved not to fund.

Borrowings

Total borrowings are forecast to be $479.1 million at the end of 2016/17. Our forecast asset base totals $7.2 billion in 2016/17.

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 2016/17 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.

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 in service levels – we will specifically consult with you on these

changes affecting our opening position (eg updated borrowings forecasts).

This means the costs for each activity may differ from those we had originally forecast in the Long-term Plan 2015–25.

Annual plan disclosure statement for year ending 30 June 2017

What is the purpose of this statement?

The purpose of this statement is to disclose the Council’s planned financial performance in relation to various benchmarks to enable the assessment of whether the Council is prudently managing its revenues, expenses, assets, liabilities, and general financial dealings.

The Council is required to include this statement in its annual plan in accordance with the Local Government (Financial Reporting and Prudence) Regulations 2014 (the regulations). Refer to the regulations for more information, including definitions of some of the terms used in this statement.

Benchmark

Planned
Met

Rates affordability benchmark

income

Total rates collected
$302.0m
Yes

increases

4.5% after growth average rates increase over the first triennium
3.6%
Yes

Debt affordability benchmark
Net closing debt over operating income
175%
Yes

Balanced budget benchmark
100%
104%
Yes

Essential services benchmark
100%
135%
Yes

Debt servicing
10%
5.6%
Yes

Notes:

1 Rates affordability benchmark

(1) For this benchmark:

(a) the Council’s planned rates income for the year is compared with [a quantified limit/quantified limits] on rates contained in the financial strategy included in the Council’s long-term plan; and

(b) the Council’s planned rates increases for the year are compared with [a quantified limit/quantified limits] on rates increases for the year contained in the financial strategy included in the Council’s long-term plan.

(2) The Council meets the rates affordability benchmark if:

(a) its planned rates income for the year equals or is less than each quantified limit on rates; and

(b) its planned rates increases for the year equal or are less than each quantified limit on rates increases.

2 Debt affordability benchmark

(1) For this benchmark, the Council’s planned borrowing is compared with [a quantified limit/quantified limits] on borrowing contained in the financial strategy included in the Council’s long-term plan.

(2) The Council meets the debt affordability benchmark if its planned borrowing is within each quantified limit on borrowing.

3 Balanced budget benchmark

(1) For this benchmark, the Council’s planned revenue (excluding development contributions, vested assets, financial contributions, gains on derivative financial instruments, and revaluations of property, plant, or equipment) is presented as a proportion of its planned operating expenses (excluding losses on derivative financial instruments and revaluations of property, plant, or equipment).

(2) The Council meets the balanced budget benchmark if its revenue equals or is greater than its operating expenses.

4 Essential services benchmark

(1) For this benchmark, the Council’s planned capital expenditure on network services is presented as a proportion of expected depreciation on network services.

(2) The Council meets the essential services benchmark if its planned capital expenditure on network services equals or is greater than expected depreciation on network services.

5 Debt servicing benchmark

(1) For this benchmark, the Council’s planned borrowing costs are presented as a proportion of planned revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant, or equipment).

(2) Because Statistics New Zealand projects that the Council’s population will grow [as fast as, or faster than,/slower than] the national population growth rate, it meets the debt servicing benchmark if its planned borrowing costs equal or are less than [10%/15%] of its planned revenue.

Fees and user charges

The 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 set 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.

In line with that policy, we have made some changes to fees and charges in the following areas:

burials and cremation

trade waste

landfill

swimming pools

recreation centres

Public Health Regulations

New Food Act fees and fee structure have been incorporated through Public Health Regulations, with the introduction of the Food Act 2014, which passed into law in June 2014.

New fees will be implemented as of 1 July 2016 and are inclusive of GST. For more information see www.wellington.co.nz

Burials and cremation

Listed below are the increases to some of our fees for burials and cremations.

Burials and cremation fees | 2015/16 fee | 2016/17 fee
Adult Plot: Plaque Lawn Beam fee | $158.00 | $166.00
Children’s Section Beam fee | $158.00 | $166.00
Denominational Areas Beam fee | $158.00 | $166.00
Ash Plots Beam fee | $158.00 | $166.00
Extras – Concrete stand large | $80.00 | $85.00
Miscellaneous – Wooden adult urns | $68.00 | $78.00
Miscellaneous – Wooden infant urns | $32.00 | $40.00

Trade waste

Listed below are the increases to our fees for trade waste.

Conveyance and transport of trade waste | 2015/16 fee | 2016/17 fee
Volume |  |
Up to 100m³/day | $0.28/m³ | $0.29/m³
Between 100m³/day and 7000m³/day | $0.13/m³ | $0.13/m₃
Above 7000m³/day | $0.89/m³ | $0.91/m³
BOD (biochemical oxygen demand) |  |
Up to 3150kg/day | $0.30/m³ | $0.31/m³
Above 3150kg/day | $0.68/m³ | $0.69/m³
Suspended solids |  |
Up to 1575kg/day | $0.29/m³ | $0.30/m³
Above 1575kg/day | $0.55/m³ | $0.56/m³

Landfill

Listed below are the increases to our fees for the landfill.

Landfill fees | 2015/16 fee | 2016/17 fee
Green waste disposal (per tonne) | $56.40 | $58.10
General waste disposal (domestic) – per tonne | $121.80 | $158.00
General waste disposal (domestic) – minimum charge | $8.00 | $10.00

Swimming pools

Listed below are the increases to some of our fees for swimming pools. For a full listing of all fees, see http://wellington.govt.nz/recreation/get-active-indoors

Pool and programme fees –
general POS
2015/16 fee
2016/17 fee

Adult Swim
$5.90
$6.00

Adult 10 concession card
$48.80
$54.00

Adult 20 concession card
$97.60
$108.00

Adult 30 concession card
$146.00
$162.00

Child Swim
$3.60
$3.70

Child 10 concession card
$29.90
$33.30

Child 20 concession card
$59.80
$66.60

Child 30 concession card
$89.70
$99.90

Leisure Card Child Swim
$1.70
$1.90

Child Swim & Spa
$4.70
$4.90

CP Child Spa 10 Concession
$22.50
$23.40

CP Leisure Card Sauna
$2.40
$2.50

CP Leisure Card Sauna/Spa 10 trip
$24.00
$25.00

CP Leisure Card Spa
$2.40
$2.50

CP Sauna
$4.80
$5.00

CP Sauna & Swim
$7.00
$7.20

CP Spa
$4.80
$5.00

CP Spa 10 Concession
$43.20
$45.00

CP Spa Child
$2.50
$2.60

CP Swim & Spa
$7.00
$7.20

Sauna/Spa 10 Concession
$43.20
$45.00

Spa Top-up
$1.10
$1.20

Spa Under 5
$1.20
-

Spectator child swim meet 10–16 years
$2.00
$2.10

Spectator Swim Meet
$2.00
$2.10

Shower
$2.30
$2.50

Freyberg Hotspot
$15.00
$15.50

Freyberg Hotspot 10 concession
$43.20
$45.00

Freyberg Nutrition Workshop – Member
$10.00
$10.50

Freyberg Nutrition Workshop – Non Member
$20.00
$20.50

Leisure Card Steamroom
$2.40
$2.50

Karori Ocean Swim
$11.00
$11.50

Khandallah Adult
$3.00
$3.10

Khandallah Child
$1.50
$1.60

KSP Ocean Swim
$11.00
$11.50

Tawa – Adult Off-peak Swim
$3.00
$3.10

Tawa – Child Swim (August deal)
$3.00
$3.10

Tawa Toddler Day
$1.20
-

Tawa WeetbixTRY Training
$3.60
$3.70

WRAC Club Active Class
$10.70
$11.00

WRAC Club Active Class Leisurecard
$5.40
$5.50

WRAC Spa Exclusive Access (30min) in addition to entry fee
-
$6.00

WRAC Spa/Sauna/Swim Adult (Hotspot)
-
$8.80

WRAC Spa/Sauna/Swim Adult (Hotspot) 10 pass
-
$79.20

WRAC Spa/Sauna/Swim Adult (Hotspot) 10 pass LC
-
$39.60

WRAC Spa/Sauna/Swim Adult (Hotspot) LC
-
$4.40

WRAC Spa/Sauna/Swim Child (Hotspot)
-
$4.40

WRAC Spa/Sauna/Swim Child (Hotspot) 10 pass
-
$39.60

25m Lane Hire 1hr Commercial
$16.00
$16.50

25m Lane Hire 1hr Non Commercial
$8.00
$8.20

50m Lane Hire 1hr Commercial
$32.00
$33.00

50m Lane Hire 1hr Non Commercial
$16.00
$16.40

Aquafitness
$10.70
$11.00

Aquafitness 10 session
$96.30
$99.00

Aquafitness Leisure Card
$5.40
$5.50

Aquafitness Leisure Card 10 concession
$54.00
$55.00

BBQ Hire
$26.50
$27.00

Bike Only
$3.00
$3.10

Coffee - Tawa Pool
$3.00
$3.10

Diving Competition
$5.00
$5.20

Diving Family
$10.00
$10.20

Diving Spec Adult
$5.00
$5.20

Diving Spec Child
$2.00
$2.10

Duathlon
$10.00
$10.20

Extension Course
$25.60
$26.00

F/C Mat hire
$2.00
$2.10

F/C small group booking
$100.00
$102.00

Family Pass
$15.40
$15.90

Fat Blast Fitness Centre
$20.00
$20.50

Flippaball
$3.60
$3.70

Flippaball Comp entry
$59.00
$60.00

Funk Party
$5.90
$6.00

LTS Karori Swim Meet
$8.00
$8.20

LTS KSP Swim Meet
$5.50
$5.70

LTS Tawa Swim Meet
$5.50
$5.70

Mah jong
$1.60
$1.70

Police Test
$17.00
$20.00

Programme Finals
$2.50
$2.60

Programme heats sessions
$10.00
$10.20

Recreation Evening
$5.00
$5.20

Replacement Card
$5.40
$5.50

Replacement Card Coaches
$16.00
$16.50

School Swim
$1.20
$1.30

School Zones
$1.10
$1.20

Seniors Week - Aqua Therapy KSP
$2.00
$2.10

Speed Zone
$15.00
$15.50

Spin - 10 Trip
$112.50
$115.00

Spin - Casual
$12.50
$13.00

Spin - Member
$2.00
$2.10

Spin 10x member card
$20.00
$20.50

Starts and Turns Clinic (LTS)
$10.00
$10.20

Steamroom
$4.80
$5.00

Swim Meet programme session
$2.00
$2.10

Swim meet all heats sessions programme
$8.00
$8.20

Swim Meet Programme Karori Meet
$2.00
$2.10

Swim Under 5 years – Entrance Fee
$1.20
-

Tama Ora - Aquafit
$5.40
$5.50

Tama Ora - Swim
$3.00
$3.10

Weet-Bix Tri
$10.00
$10.20

Pool fees – rental fees | 2015/16 fee | 2016/17 fee
Pools - BBQ | $26.50 | $27.00
Freyberg - Aerobics Room - Commercial | $41.80 | $42.60
Freyberg - Aerobics Room - NC | $20.90 | $21.30
Pool - whole (excl WRAC) | $83.50 | $85.20
Pool - whole (excl WRAC) - Commercial | $167.00 | $170.40
Pool Hire 30 metre set up | $72.00 | $73.50
Pool Hire 30 metre set up - Commercial | $144.00 | $147.00
Pool Hire 50 metre - Commercial | $240.00 | $367.20
Pool Hire 50 metre Pool | $120.00 | $183.60
Pools - Group Fitness Room | $28.00 | $30.00
Pools - Group Fitness Room - Commercial | $56.00 | $60.00
Pools - Hourly Massage room | $10.00 | $11.00
Pools - Kayak | $34.70 | $35.40
Pools - Lane Hire 25m | $8.00 | $8.20
Pools - Lane Hire 25m - Commercial | $16.00 | $16.40
Pools - Lane Hire Thorndon | $13.30 | $13.60
Pools - Massage room (4hr session) | $40.00 | $40.80
Tawa Pool - whole (Tawa Pool only) | $50.00 | $51.00
Tawa Pool - whole (Teaching pool only) | $25.00 | $25.50
Trestle Tables | $14.00 | $15.00
WRAC - Events office | $10.00 | $11.00
WRAC - Lane Hire 50m | $18.00 | $18.50
WRAC - Lane Hire 50m - Commercial | $36.00 | $37.00
WRAC - Office | $10.00 | $11.00
WRAC - Storeroom | $10.00 | $11.00

Pool fees – other rental fees
(non POS items)
2015/16 fee
2016/17 fee

Freyberg - Aqua Instructor charge
$55.10
$56.20

Freyberg - PST 1 child
$6.80
$6.90

Freyberg - PST 2 child
$10.00
$10.20

Freyberg - PST 3 child
$13.40
$13.70

Freyberg - Spa Pool Hire
$104.00
$106.50

Karori - Aquatic Activity Instructor
$28.00
$30.50

Karori - Inflatable
$65.00
$66.50

Karori - Schools Instructor
$25.00
$25.50

Khandallah - Adult Swim
$3.00
$3.10

Khandallah - Child Swim
$1.50
$1.60

KSP - Aquatic Activity Instructor
$30.00
$30.50

KSP - Flippaball registration fee
$59.00
$60.20

KSP - Schools Instructor
$25.00
$25.50

Sound System / Underwater speakers Full Day
$160.00
$164.00

Sound System 1/2 day
$80.00
$82.00

Tawa - Aquatic Activity Instructor
$30.00
$30.50

Tawa - Inflatable
$60.00
$61.50

Tawa - Schools Instructor
$25.00
$25.50

WRAC - Aqua Instructor charge
$60.00
$61.50

WRAC - Aquatic Activity Instructor
$30.00
$30.50

WRAC - Birthday Party Child
$4.50
$4.70

WRAC - Events Passes - Adult
$5.50
$6.00

WRAC - Events Passes - Child
$2.50
$3.70

WRAC - Fitness Class
$10.60
$11.00

WRAC - Inflatable
$60.00
$80.00

WRAC - Lifeguard non commercial
$30.00
$45.00

WRAC - Massage Space
$33.10
$35.00

WRAC - Police Swim Test
$17.00
$18.00

WRAC - Rugby Recovery
$7.40
$7.60

WRAC - Schools Instructor
$25.00
$25.50

WRAC - Scoreboard/BigScreen
$120.00
$125.00

WRAC - Showers
$2.30
$2.50

WRAC - Staff Hire
$42.00
$45.00

Pool fees – swim memberships | 2015/16 fee | 2016/17 fee
Adult Monthly | $59.25 | $60.50
Adult Yearly | $710.45 | $724.60
Child Monthly | $35.45 | $36.20
Child Yearly | $426.30 | $434.80
Adult Monthly LC | $29.63 | $30.25
Adult Yearly LC | $355.23 | $362.30
Child Monthly LC | $17.73 | $18.10
Child Yearly LC | $213.15 | $217.40
Adult Monthly Swim Club | $50.36 | $51.40
Adult Yearly Swim Club | $603.88 | $615.90
Child Monthly Swim Club | $30.13 | $30.70
Child Yearly Swim Club | $362.36 | $369.60

Pool fees – aquatic programme | 2015/16 fee | 2016/17 fee
Beg school age (Up to Adv 1) | $13.50 | $14.00
Int school age (Adv 2–3) | $14.50 | $15.00
Adv school age (Mini squad/sport fit) | $15.00 | $15.50

Pool fees – other programmes | 2015/16 fee | 2016/17 fee
Adult Swim | $14.50 | $15.00
Adult Kayak | $28.10 | $28.70
Adult Kayak WRAC | $19.00 | $19.40
Child Diving KSP | $15.10 | $15.40
Child Diving WRAC | $15.50 | $15.80
Child Kayak | $15.10 | $15.40
Child Snorkelling | $15.10 | $15.40
Aquatic Club | $15.10 | $15.40
Private lesson | $60.00 | $61.50
Tai Chi | $9.50 | $9.70
Multisport Adult | $21.60 | $22.00
Multisport Child | $16.20 | $16.50
CART | $6.00 | $6.10

Recreation centres

Listed below are the increases to some of our fees for recreation centres. For a full listing of all fees, see http://wellington.govt.nz/recreation/get-active-indoors

Recreation fees – community recreation centres
2015/16 fee
2016/17 fee

Facility Court Hire - Off-peak
$27.00
$30.00

Facility Court Hire - Peak
$48.00
$50.00

Facility Court Hire - Kilbirnie Rec Peak (one-off events)
$58.50
$60.00

Facility Court Hire - Kilbirnie Rec (Commerical)
$100.00
$105.00

Facility Room Hire - Rec Centre Meeting Room - Semi Comm
$21.00
$25.00

Facility Room Hire - Rec Centre Meeting Room - Non Comm
$16.00
$18.00

Casual Play - Adult
$3.20
$3.50

Casual Play - Child
$1.60
$2.00

Casual Play - Leisure Card
$1.60
$1.80

Badminton - Casual
$1.80
$2.00

Tinytown - Preschool
$4.20
$4.50

Tinytown - Leisure Card
$2.10
$2.20

Tinytown - Earlybird
$6.70
$6.80

Tinytown - Earlybird Leisure Card
$5.30
$5.50

Programmes

Active Fun Play/Gym Jam
$4.50
$5.50

Preschool 0 to 2
$7.00/$8.50 Casual
$7.00/$9.50 Casual

2 to 5
$7.00/$8.50 Casual
$7.00/$9.50 Casual

School Age Programmes
$8.50
$9.00

Kilbirnie Rec Centre (skateboarding/rollerskate/rollerblade etc)
$9.40
$10.50

Kilbirnie Rec Centre LC (skateboarding/rollerskate/rollerblade etc)
$7.50
$8.40

Social Netball League (adult)
$55.00
per week
$60.00
per week

Miniball League
$225.00
per team/per term
$300.00
per team/per term

Basketball League
$262.50
per team/per term
$300.00
per team/per term

Parkour (Karori)
-
$12.50

Ezy Movers
$5.00
$5.50

Holiday Programme
$32.00/$42.00 Casual
$35.00/$45.00 or $50.00 Casual

Recreation fees – indoor community ASB Sports Centre | 2015/16 fee | 2016/17 fee
Facility Court Hire - Off-peak | $37.00 | $40.00
Facility Court Hire - Peak | $55.00 | $60.00
Facility Room Hire - Matairangi Room 1hr | $40.00 | $41.00
Facility Room Hire - Ngake Room 1hr | $20.00 | $20.50
Facility Room Hire - Ngake/Whataitai Room 1hr | $40.00 | $41.00
Facility Room Hire - Whataitai Room 1hr | $20.00 | $20.50
Casual Play - Adult | $3.20 | $3.50
Casual Play - Child | $1.60 | $2.00
Casual Play - Leisure Card | $1.60 | $1.80
Badminton - Off-peak | $9.00 | $11.00
Badminton - Peak | $14.00 | $16.00
Volleyball – Off-peak | $24.00 | $24.50
Volleyball - Peak | $37.00 | $38.00
Table Tennis – Off-peak | $9.00 | $10.00
Table Tennis - Peak | $14.00 | $16.00
Programmes - Preschool 0–2 | $6.00 | $7.00
Programmes - Preschool 2–5 | $6.00 | $7.50

Public Health Regulations

New fees and fee structure for Food Act fees under the new Food Act 2014 have been introduced and are listed below.

Public Health Food Act 2014 Fees – Food Control Plan | Time included | 2016/17 fee
Registration | 1 hour | $155.00
Registration renewal/re-register | half hour | $77.50
Amendment |  |
Significant | 1 hour | $155.00
Minor | half hour | $77.50
Change of circumstances | half hour | $77.50
Voluntary suspension | half hour | $77.50
Verification |  |
1st verification | 2.5 hours | $387.50
2nd verification | 2.5 hours | $387.50
Reduced verification | 1 hour | $155.00
Compliance |  |
Notice | 1 hour | $155.00
Application for review | 1 hour | $155.00
Statement of compliance | half hour | $77.50
Opening inspections | 1 hour | $155.00
Additional hours | per hour | $155.00

Public Health Food Act 2014 Fees – National Programme | Time included | 2016/17 fee
Registration | 1 hour | $155.00
Registration renewal/re-register | half hour | $77.50
Amendment |  |
Change of circumstances | half hour | $77.50
Voluntary suspension | half hour | $77.50
Verification |  |
1st verification | 1 hour | $155.00
2nd verification | 1 hour | $155.00
Compliance |  |
Notice | 1 hour | $155.00
Application for review | 1 hour | $155.00
Statement of compliance | half hour | $77.50
Opening inspections | 1 hour | $155.00
Additional hours | per hour | $155.00

Funding Impact Statements

Whole of Council

2015/16
LTP
$000
2016/17
AP
$000
Variance
to LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
152,004
160,913
8,909

Targeted rates (other than a targeted rate for water supply)
118,903
123,231
4,328

Subsidies and grants for operating purposes
6,485
8,086
1,601

Fees and charges
122,218
123,171
953

Interest and dividends from investments
11,013
11,125
112

Local authorities fuel tax, fines, infringement fees, and other receipts
9,255
9,178
(77)

Total operating funding (A)
419,878
435,704
15,826

Applications of operating funding

Payments to staff and suppliers
280,484
291,914
11,430
1

Finance costs
22,961
25,617
2,656
1

Internal charges and overheads applied
-
-
-

Other operating funding applications
35,850
43,007
7,157
1

Total applications of operating funding (B)
339,295
360,538
21,243

Surplus (deficit) of operating funding (A - B)
80,583
75,166
(5,417)

Sources of capital funding

Subsidies and grants for capital expenditure
36,026
32,950
(3,076)

Development and financial contributions
2,000
2,000
-

Increase (decrease) in debt
41,399
71,263
29,864
2

Gross proceeds from sales of assets
2,650
4,600
1,950

Lump sum contributions
-
-
-

Total sources of capital funding (C)
82,075
110,813
28,738

Applications of capital funding

Capital expenditure

- to meet additional demand
2,597
1,922
(675)
3

- to improve the level of service
62,680
87,124
24,444
3

- to replace existing assets
93,169
91,736
(1,433)
3

Increase (decrease) in reserves
4,212
5,197
985

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
162,658
185,979
23,321

Surplus (deficit) of capital funding (C - D)
(80,583)
(75,166)
5,417

Funding balance ((A - B) + (C - D))
-
-
0

Expenses for this activity grouping include the following depreciation/amortisation charge
102,165
101,975
(190)

Notes:

Variances for these operating expenditure items can be found in the Funding Impact Statement for each activity over the following 18 pages.

Includes funding for proposed Movie Museum and proposed Convention Centre.

Variances for these capital expenditure items can be found in the Funding Impact Statement for each activity over the following 18 pages.

1.1 Governance, Information And Engagement

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
16,587
17,528
941

Targeted rates (other than a targeted rate for water supply)
-
-
-

Subsidies and grants for operating purposes
-
-
-

Fees and charges
508
889
381
1

Internal charges and overheads recovered
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-

Total operating funding (A)
17,095
18,417
1,322

Applications of operating funding

Payments to staff and suppliers
9,713
11,170
1,457
2

Finance costs
16
16
-

Internal charges and overheads applied
7,308
7,179
(129)

Other operating funding applications
10
10
-

Total applications of operating funding (B)
17,047
18,375
1,328

Surplus (deficit) of operating funding (A - B)
48
42
(6)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
(48)
74
122

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
(48)
74
122

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
-
-
-

- to replace existing assets
-
116
116
3

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
-
116
116

Surplus (deficit) of capital funding (C - D)
(48)
(42)
6

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

Expenses for this activity grouping include the following depreciation/amortisation charge
48
42
(6)

Notes:

Revenue cost recovery for elections conducted on behalf of other local authorities and boards, for example Greater Wellington Regional Council and the Capital and Coast District Health Board. Parking revenue collected by Service Centre now recognised in Activity 7.2.

Increase in contractor costs related to local body election year.

Cost related to election-specific software.

1.2 Māori And Mana Whenua Partnerships

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
281
295
14

Targeted rates (other than a targeted rate for water supply)
-
-
-

Subsidies and grants for operating purposes
-
-
-

Fees and charges
-
-
-

Internal charges and overheads recovered
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-

Total operating funding (A)
281
295
14

Applications of operating funding

Payments to staff and suppliers
267
267
-

Finance costs
1
1
-

Internal charges and overheads applied
11
15
4

Other operating funding applications
-
10
10

Total applications of operating funding (B)
279
293
14

Surplus (deficit) of operating funding (A - B)
2
2
-

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
(2)
(2)
-

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
(2)
(2)
-

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
-
-
-

- to replace existing assets
-
-
-

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
-
-
-

Surplus (deficit) of capital funding (C - D)
(2)
(2)
-

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

Expenses for this activity grouping include the following depreciation/amortisation charge
2
2
-

2.1 Gardens, Beaches And Green Open Spaces

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
30,360
33,822
3,462

Targeted rates (other than a targeted rate for water supply)
-
-
-

Subsidies and grants for operating purposes
699
636
(63)

Fees and charges
1,437
1,465
28

Internal charges and overheads recovered
5,111
5,203
92

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-

Total operating funding (A)
37,607
41,126
3,519

Applications of operating funding

Payments to staff and suppliers
19,285
19,718
433
1

Finance costs
1,993
1,984
(9)

Internal charges and overheads applied
12,281
12,410
129

Other operating funding applications
120
100
(20)

Total applications of operating funding (B)
33,679
34,212
533

Surplus (deficit) of operating funding (A - B)
3,928
6,914
2,986

Sources of capital funding

Subsidies and grants for capital expenditure
650
-
(650)
2

Development and financial contributions
183
183
-

Increase (decrease) in debt
(2,129)
(3,426)
(1,297)

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
(1,296)
(3,243)
(1,947)

Applications of capital funding

Capital expenditure

- to meet additional demand
70
-
(70)

- to improve the level of service
1,121
1,959
838
3

- to replace existing assets
1,441
1,712
271

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
2,632
3,671
1,039

Surplus (deficit) of capital funding (C - D)
(3,928)
(6,914)
(2,986)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
3,928
7,264
3,336

Notes:

Increase due to additional funding for Our Natural Capital $165k, Town Belt flora and fauna monitoring $155k, and additional vegetation control costs $240k.

No funding drawdown on Plimmer Bequest funding 2016/17 Annual Plan.

Funding added to support the Lyall Bay Foreshore Resilience Plan $1m, including work on Surfers Corner car park $236k and pipe extensions and rock riprap at the western end of the beach $594k.

2.2 Waste Reduction And Energy Conservation

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
764
778
14

Targeted rates (other than a targeted rate for water supply)
-
-
-

Subsidies and grants for operating purposes
-
-
-

Fees and charges
12,876
13,320
444
1

Internal charges and overheads recovered
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-

Total operating funding (A)
13,640
14,098
458

Applications of operating funding

Payments to staff and suppliers
12,126
12,492
366
2

Finance costs
877
751
(126)

Internal charges and overheads applied
56
78
22

Other operating funding applications
255
383
128

Total applications of operating funding (B)
13,314
13,704
390

Surplus (deficit) of operating funding (A - B)
326
394
68

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
912
344
(568)
3

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
912
344
(568)

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
-
65
65

- to replace existing assets
1,238
673
(565)
3

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
1,238
738
(500)

Surplus (deficit) of capital funding (C - D)
(326)
(394)
(68)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
326
394
68

Notes:

Reflects increase in release of Waste Minimisation Levy to offset landfill costs.

Costs have increased within this activity as a result of inflationary and other contractual pressures.

Costs associated with Stage 4 of the Landfill project moved out into the 2017/18 budget year.

2.3 Water

2015/16
LTP
$000
2016/17
AP
$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)
38,291
40,257
1,966

Subsidies and grants for operating purposes
-
-
-

Fees and charges
35
35
-

Internal charges and overheads recovered
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-

Total operating funding (A)
38,326
40,292
1,966

Applications of operating funding

Payments to staff and suppliers
22,501
23,369
868
1

Finance costs
2,100
2,104
4

Internal charges and overheads applied
1,443
1,952
509
2

Other operating funding applications
-
-
-

Total applications of operating funding (B)
26,044
27,425
1,381

Surplus (deficit) of operating funding (A - B)
12,282
12,867
585

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
671
671
-

Increase (decrease) in debt
3,999
1,377
(2,622)

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
4,670
2,048
(2,622)

Applications of capital funding

Capital expenditure

- to meet additional demand
563
538
(25)

- to improve the level of service
3,038
3,375
337
3

- to replace existing assets
13,351
11,002
(2,349)
4

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
16,952
14,915
(2,037)

Surplus (deficit) of capital funding (C - D)
(12,282)
(12,867)
(585)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
12,282
12,867
585

Notes:

Costs have increased due to a rise in bulk water costs from GWRC $800k.

Increase due to reallocation of organisational overhead costs to better align to the cost of services provided within the activity.

Funding for the upgrade of water meters across Wellington.

The variance is a result of the availability and use of improved asset information and asset management systems. These systems have resulted in better informed renewals spend.

2.4 Wastewater

2015/16
LTP
$000
2016/17
AP
$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)
37,425
39,112
1,687

Subsidies and grants for operating purposes
-
-
-

Fees and charges
1,233
1,244
11

Internal charges and overheads recovered
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-

Total operating funding (A)
38,658
40,356
1,698

Applications of operating funding

Payments to staff and suppliers
21,117
20,623
(494)
1

Finance costs
3,741
3,833
92

Internal charges and overheads applied
3,525
5,254
1,729
2

Other operating funding applications
-
-
-

Total applications of operating funding (B)
28,383
29,710
1,327

Surplus (deficit) of operating funding (A - B)
10,275
10,646
371

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
549
549
-

Increase (decrease) in debt
(343)
40
383

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
206
589
383

Applications of capital funding

Capital expenditure

- to meet additional demand
223
228
5

- to improve the level of service
-
316
316
3

- to replace existing assets
10,258
10,691
433
3

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
10,481
11,235
754

Surplus (deficit) of capital funding (C - D)
(10,275)
(10,646)
(371)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
13,428
13,887
459

Notes:

Costs have decreased within this activity as a result of inflationary and other contractual pressures.

Increase due to reallocation of organisational overhead costs to better align to the cost of services provided within the activity.

Budget increased to improve the resilience of the wastewater network.

2.5 Stormwater

2015/16
LTP
$000
2016/17
AP
$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)
17,442
18,012
570

Subsidies and grants for operating purposes
136
125
(11)

Fees and charges
10
10
-

Internal charges and overheads recovered
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-

Total operating funding (A)
17,588
18,147
559

Applications of operating funding

Payments to staff and suppliers
7,131
7,018
(113)

Finance costs
2,904
2,890
(14)

Internal charges and overheads applied
1,501
2,000
499
1

Other operating funding applications
-
-
-

Total applications of operating funding (B)
11,536
11,908
372

Surplus (deficit) of operating funding (A - B)
6,052
6,239
187

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
58
58
-

Increase (decrease) in debt
(1,654)
723
2,377

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
(1,596)
781
2,377

Applications of capital funding

Capital expenditure

- to meet additional demand
161
237
76

- to improve the level of service
1,501
4,550
3,049
2

- to replace existing assets
2,794
2,233
(561)
3

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
4,456
7,020
2,564

Surplus (deficit) of capital funding (C - D)
(6,052)
(6,239)
(187)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
6,052
6,239
187

Notes:

Increase due to reallocation of organisational overhead costs to better align to the cost of services provided within the activity.

Budget increased to improve the resilience and ability of the stormwater network to respond to significant weather events.

The variance is a result of the availability and use of improved asset information and asset management systems. These systems have resulted in better informed renewals spend.

2.6 Conservation Attractions

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
6,459
6,989
530

Targeted rates (other than a targeted rate for water supply)
-
-
-

Subsidies and grants for operating purposes
-
-
-

Fees and charges
-
-
-

Internal charges and overheads recovered
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-

Total operating funding (A)
6,459
6,989
530

Applications of operating funding

Payments to staff and suppliers
214
216
2

Finance costs
748
787
39

Internal charges and overheads applied
286
275
(11)

Other operating funding applications
3,689
3,919
230

Total applications of operating funding (B)
4,937
5,197
260

Surplus (deficit) of operating funding (A - B)
1,522
1,792
270

Sources of capital funding

Subsidies and grants for capital expenditure
126
-
(126)

Development and financial contributions
-
-
-

Increase (decrease) in debt
(332)
(975)
(643)

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
(206)
(975)
(769)

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
516
-
(516)
1

- to replace existing assets
800
817
17

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
1,316
817
(499)

Surplus (deficit) of capital funding (C - D)
(1,522)
(1,792)
(270)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
1,522
1,792
270

Notes:

No zoo upgrades budgeted in 2016/17 Annual Plan year.

3.1 City Promotions And Business Support

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
4,610
4,377
(233)

Targeted rates (other than a targeted rate for water supply)
15,226
14,713
(513)

Subsidies and grants for operating purposes
-
1,051
1,051
1

Fees and charges
14,365
14,369
4

Internal charges and overheads recovered
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-

Total operating funding (A)
34,201
34,510
309

Applications of operating funding

Payments to staff and suppliers
21,483
21,216
(267)

Finance costs
736
1,565
829
2

Internal charges and overheads applied
939
754
(185)

Other operating funding applications
12,248
16,763
4,515
3

Total applications of operating funding (B)
35,406
40,298
4,892

Surplus (deficit) of operating funding (A - B)
(1,205)
(5,788)
(4,583)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
3,420
12,799
9,379

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
3,420
12,799
9,379

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
-
5,252
5,252
4

- to replace existing assets
2,215
1,759
(456)
5

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
2,215
7,011
4,796

Surplus (deficit) of capital funding (C - D)
1,205
5,788
4,583

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

Expenses for this activity grouping include the following depreciation/amortisation charge
1,795
1,787
(8)

Notes:

Funding income to offset the rates impact of the build phase of the proposed Convention Centre.

Interest costs for the building of the proposed Convention Centre.

Grant to Westpac Regional Stadium Trust for stadium improvements and maintenance.

Funding for the proposed Convention Centre construction programme.

Total 2015/16 and 2016/17 budgets include funding for Wellington venues renewals $1.3m, and 2016/17 for replacement of the TSB Arena floor $380k. Budgeted works 2015/16 included funding for replacing the HVAC system at St James Theatre $930k.

4.1 Arts And Culture Activities

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
13,008
14,090
1,082

Targeted rates (other than a targeted rate for water supply)
5,148
5,540
392

Subsidies and grants for operating purposes
410
494
84

Fees and charges
577
588
11

Internal charges and overheads recovered
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-

Total operating funding (A)
19,143
20,712
1,569

Applications of operating funding

Payments to staff and suppliers
4,072
4,723
651
1

Finance costs
276
368
92

Internal charges and overheads applied
1,024
1,180
156

Other operating funding applications
13,101
13,607
506
2

Total applications of operating funding (B)
18,473
19,878
1,405

Surplus (deficit) of operating funding (A - B)
670
834
164

Sources of capital funding

Subsidies and grants for capital expenditure
1,914
-
(1,914)

Development and financial contributions
-
-
-

Increase (decrease) in debt
(363)
8,440
8,803

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
1,551
8,440
6,889

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
2,119
9,272
7,153
3

- to replace existing assets
102
2
(100)

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
2,221
9,274
7,053

Surplus (deficit) of capital funding (C - D)
(670)
(834)
(164)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
670
834
164

Notes:

Budget increase includes extra funding for Toi Pōneke $140k, and funding for a new flagship outdoor events series $200k.

Funding increased for Cultural Grants Pool $275k, plus an increase in funding to the Wellington Museums Trust $270k.

Funding for construction of the proposed Movie Museum.

5.1 Recreation Promotion And Support

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
25,083
25,994
911

Targeted rates (other than a targeted rate for water supply)
1,088
1,107
19

Subsidies and grants for operating purposes
200
204
4

Fees and charges
11,547
11,599
52

Internal charges and overheads recovered
1,116
1,136
20

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-

Total operating funding (A)
39,034
40,040
1,006

Applications of operating funding

Payments to staff and suppliers
17,953
18,870
917
1

Finance costs
3,615
3,795
180

Internal charges and overheads applied
9,214
9,058
(156)

Other operating funding applications
663
678
15

Total applications of operating funding (B)
31,445
32,401
956

Surplus (deficit) of operating funding (A - B)
7,589
7,639
50

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
736
(822)
(1,558)

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
736
(822)
(1,558)

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
1,476
2,541
1,065
2

- to replace existing assets
6,849
4,276
(2,573)
2

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
8,325
6,817
(1,508)

Surplus (deficit) of capital funding (C - D)
(7,589)
(7,639)
(50)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
7,589
7,639
50

Notes:

Budget increase due to increase in staffing levels across the recreation centre and swimming pool network to meet health and safety requirements $625k, plus other inflationary pressures.

Total budget for 2016/17 includes funding for Basin Reserve Master Plan renewals programme $1.6.m, Hataitai Park re-surfacing $275k, renewal of Freyberg Pool facilities $1.8m, funding for an artificial surface at the former Terawhiti Bowling Club site in Karori $740k and development of Martin Luckie Park as a training facility for elite sport in Wellington $500k.

5.2 Community Support

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
22,792
24,737
1,945

Targeted rates (other than a targeted rate for water supply)
4,250
4,457
207

Subsidies and grants for operating purposes
969
934
(35)

Fees and charges
22,869
19,432
(3,437)
1

Internal charges and overheads recovered
1,171
1,125
(46)

Local authorities fuel tax, fines, infringement fees, and other receipts
586
547
(39)

Total operating funding (A)
52,637
51,232
(1,405)

Applications of operating funding

Payments to staff and suppliers
26,470
26,236
(234)

Finance costs
(1,632)
(1,600)
32

Internal charges and overheads applied
11,542
12,967
1,425
2

Other operating funding applications
4,084
4,632
548
3

Total applications of operating funding (B)
40,464
42,235
1,771

Surplus (deficit) of operating funding (A - B)
12,173
8,997
(3,176)

Sources of capital funding

Subsidies and grants for capital expenditure
20,668
18,082
(2,586)
4

Development and financial contributions
-
-
-

Increase (decrease) in debt
(3,771)
24,647
28,418
5

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
16,897
42,729
25,832

Applications of capital funding

Capital expenditure

- to meet additional demand
-
919
919
5

- to improve the level of service
26,139
25,706
(433)
5

- to replace existing assets
8,763
7,019
(1,744)
5

Increase (decrease) in reserves
(5,832)
18,082
23,914

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
29,070
51,726
22,656

Surplus (deficit) of capital funding (C - D)
(12,173)
(8,997)
3,176

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

Expenses for this activity grouping include the following depreciation/amortisation charge
15,318
15,504
186

Notes:

Reduction in revenue due to closure of Arlington Street social housing during redevelopment.

Increase due to reallocation of organisational overhead costs to better align to the cost of services provided within the activity.

Additional funding for the Social and Recreation Grants Pool $500k.

Reduction in drawdown from social housing funding pool.

Budgeted expenditure for Housing Upgrade Programme and Johnsonville Library redevelopment.

5.3 Public Health And Safety

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
9,540
10,099
559

Targeted rates (other than a targeted rate for water supply)
-
-
-

Subsidies and grants for operating purposes
25
-
(25)

Fees and charges
3,993
4,082
89

Internal charges and overheads recovered
664
676
12

Local authorities fuel tax, fines, infringement fees, and other receipts
39
39
-

Total operating funding (A)
14,261
14,896
635

Applications of operating funding

Payments to staff and suppliers
9,012
9,011
(1)

Finance costs
91
93
2

Internal charges and overheads applied
4,386
4,988
602
1

Other operating funding applications
129
109
(20)

Total applications of operating funding (B)
13,618
14,201
583

Surplus (deficit) of operating funding (A - B)
643
695
52

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
1,028
1,315
287

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
1,028
1,315
287

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
110
739
629
2

- to replace existing assets
1,561
1,271
(290)

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
1,671
2,010
339

Surplus (deficit) of capital funding (C - D)
(643)
(695)
(52)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
643
695
52

Notes:

Increase due to reallocation of organisational overhead costs to better align to the cost of services provided within the activity.

Additional funding included for funding for the upgrade of the clubrooms at Martin Luckie Park $250k, and upgrade of public conveniences at Alex Moore Park $330k.

6.1 Urban Planning, Heritage And Public Spaces Development

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
6,896
7,622
726

Targeted rates (other than a targeted rate for water supply)
-
-
-

Subsidies and grants for operating purposes
-
-
-

Fees and charges
20
20
-

Internal charges and overheads recovered
-
408
408

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-

Total operating funding (A)
6,916
8,050
1,134

Applications of operating funding

Payments to staff and suppliers
2,857
4,524
1,667
1

Finance costs
15
14
(1)

Internal charges and overheads applied
3,233
2,201
(1,032)
2

Other operating funding applications
800
1,300
500
3

Total applications of operating funding (B)
6,905
8,039
1,134

Surplus (deficit) of operating funding (A - B)
11
11
-

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
7,607
7,942
335

Gross proceeds from sales of assets
650
2,600
1,950
4

Lump sum contributions
-
-
-

Total sources of capital funding (C)
8,257
10,542
2,285

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
5,702
9,349
3,647
5

- to replace existing assets
2,566
1,204
(1,362)
6

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
8,268
10,553
2,285

Surplus (deficit) of capital funding (C - D)
(11)
(11)
-

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

Expenses for this activity grouping include the following depreciation/amortisation charge
11
11
-

Notes:

Additional funding for Swan Lane and Egmont Street urban lane activation projects $200k, for reinstatement of the Akau Tangi cones on Cobham Drive $90k, reclassification of costs from the organisation overhead pool $1.25m.

Increase due to reallocation of organisational overhead costs to better align to the cost of services provided within the activity.

Additional funding of $500k for Built Heritage Incentive Fund added during Long-term Plan 2015-25.

Proceeds from long-term lease of North Kumutoto waterfront carpark $2.6m.

Funding for development of North Kumutoto waterfront public space $3m. Additional funding for urban lane activation projects in Swan Lane, Garrett Street and Holland Street $400k.

Total budget for 2016/17 consists of funding for waterfront seawall and wharf renewals $810k, additional budget for maintenance of the Lagoon Bridge $150k and public street lighting $75k.

6.2 Building And Development Control

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
9,449
8,685
(764)

Targeted rates (other than a targeted rate for water supply)
-
-
-

Subsidies and grants for operating purposes
-
-
-

Fees and charges
12,027
11,942
(85)

Internal charges and overheads recovered
224
342
118

Local authorities fuel tax, fines, infringement fees, and other receipts
24
24
-

Total operating funding (A)
21,724
20,993
(731)

Applications of operating funding

Payments to staff and suppliers
12,655
12,481
(174)

Finance costs
3
3
-

Internal charges and overheads applied
8,761
8,224
(537)
1

Other operating funding applications
135
135
-

Total applications of operating funding (B)
21,554
20,843
(711)

Surplus (deficit) of operating funding (A - B)
170
150
(20)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
5,770
2,891
(2,879)

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
5,770
2,891
(2,879)

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
5,940
3,041
(2,899)
2

- to replace existing assets
-
-
-

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
5,940
3,041
(2,899)

Surplus (deficit) of capital funding (C - D)
(170)
(150)
20

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

Expenses for this activity grouping include the following depreciation/amortisation charge
170
150
(20)

Notes:

Decrease due to reallocation of organisational overhead costs to better align to the cost of services provided within the activity.

Funding moved into 2017/18 to better reflect deliverability of Civic Campus refresh project.

7.1 Transport

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
32,648
35,761
3,113

Targeted rates (other than a targeted rate for water supply)
33
33
-

Subsidies and grants for operating purposes
4,046
4,442
396
1

Fees and charges
2,042
1,960
(82)

Internal charges and overheads recovered
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-

Total operating funding (A)
38,769
42,196
3,427

Applications of operating funding

Payments to staff and suppliers
12,189
13,409
1,220
2

Finance costs
5,169
5,288
119

Internal charges and overheads applied
6,093
7,106
1,013

Other operating funding applications
515
1,260
745
3

Total applications of operating funding (B)
23,966
27,063
3,097

Surplus (deficit) of operating funding (A - B)
14,803
15,133
330

Sources of capital funding

Subsidies and grants for capital expenditure
12,668
14,868
2,200

Development and financial contributions
539
539
-

Increase (decrease) in debt
10,563
10,017
(546)

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
23,770
25,424
1,654

Applications of capital funding

Capital expenditure

- to meet additional demand
1,580
-
(1,580)
4

- to improve the level of service
11,199
15,602
4,403
5

- to replace existing assets
25,794
24,955
(839)
6

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
38,573
40,557
1,984

Surplus (deficit) of capital funding (C - D)
(14,803)
(15,133)
(330)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
22,646
24,453
1,807

Notes:

Capital expenditure budget has resulted in a higher level of NZTA subsidy.

Increase due to more funding for Ngauranga Gorge to Airport expressway project $1.7m, and increased funding for network compliance items, for example signage and markings $226k.

Funding for replacement of Cable Car electric drive, budgeted in the 2015-25 Long-term Plan 2015-25 Year 2 $2.5m, now re-phased $1.5m into 2015/16, and $1m 2016/17.

No growth upgrade projects budgeted for 2016/17.

Total 2016/17 budget includes a $7.5m investment in cycling infrastructure. New initiative Safer Roads project funding $1.1m, and increased funding for roading corridor improvement projects $600k.

The variance is a result of the availability and use of improved asset information and asset management systems. These systems have resulted in better informed renewals spend.

7.2 Parking

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
(14,051)
(14,370)
(319)

Targeted rates (other than a targeted rate for water supply)
-
-
-

Subsidies and grants for operating purposes
-
-
-

Fees and charges
19,899
20,777
878
1

Internal charges and overheads recovered
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
7,556
7,518
(38)

Total operating funding (A)
13,404
13,925
521

Applications of operating funding

Payments to staff and suppliers
10,346
10,765
419

Finance costs
479
584
105

Internal charges and overheads applied
1,987
2,523
536
2

Other operating funding applications
1
1
-

Total applications of operating funding (B)
12,813
13,873
1,060

Surplus (deficit) of operating funding (A - B)
591
52
(539)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
858
444
(414)

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
858
444
(414)

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
1,449
496
(953)
3

- to replace existing assets
-
-
-

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
1,449
496
(953)

Surplus (deficit) of capital funding (C - D)
(591)
(52)
539

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

Expenses for this activity grouping include the following depreciation/amortisation charge
591
52
(539)

Notes:

Increase due to movement of car parking revenue from activity 1.1 to 7.2 $320k, and effect of increased volumes on revenue $420k.

Increase due to reallocation of organisational overhead costs to better align to the cost of services provided within the activity.

Total budget for 2016/17 includes funding for phase 2 of parking sensor roll-out $300k (phase 1 Long-term Plan 2015-25 $1.45m), and roadside parking improvements $105k.

10.1 Organisational

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
(12,422)
(15,494)
(3,072)

Targeted rates (other than a targeted rate for water supply)
-
-
-

Subsidies and grants for operating purposes
-
200
200

Fees and charges
29,793
32,564
2,771
1

Internal charges and overheads recovered
34,577
33,829
(748)

Local authorities fuel tax, fines, infringement fees, and other receipts
1,050
1,050
-

Total operating funding (A)
52,998
52,149
(849)

Applications of operating funding

Payments to staff and suppliers
71,094
75,809
4,715
1

Finance costs
1,829
3,141
1,312
2

Internal charges and overheads applied
(30,727)
(35,445)
(4,718)
3

Other operating funding applications
100
100
-

Total applications of operating funding (B)
42,296
43,605
1,309

Surplus (deficit) of operating funding (A - B)
10,702
8,544
(2,158)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
15,148
5,435
(9,713)

Gross proceeds from sales of assets
2,000
2,000
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
17,148
7,435
(9,713)

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
2,370
4,861
2,491
4

- to replace existing assets
15,437
24,006
8,569
4

Increase (decrease) in reserves
10,043
(12,888)
(22,931)

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
27,850
15,979
(11,871)

Surplus (deficit) of capital funding (C - D)
(10,702)
(8,544)
2,158

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

Expenses for this activity grouping include the following depreciation/amortisation charge
12,776
8,363
(4,413)

Notes:

Transition costs and associated external income from move to regional shared services for information and communications technology.

Finance cost increase related to increased debt funding of capital expenditure projects as per Note 4 below.

Decrease in corporate costs due to reallocation of organisational overhead.

Total budget includes funding for Civic Campus redevelopment/ office resilience and efficiency projects $3.9m, Council property-related renewals/ upgrades $4.1m, and funding for information technology projects $2.7m. Funding of $10.34m budgeted for the purchase of Karori Sanctuary visitor centre from the Karori Sanctuary Trust. The Trust will use these funds to repay their outstanding loan balance with the Council of $10.34m.

Rates Funding 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
$39,413,606,000
¢0.222919
$87,860

Commercial, Industrial & Business
Capital Value
Commercial, industrial & business use
$11,510,047,000
¢0.623768
$71,796

TOTAL

$159,656

Sewerage targeted rate
Base (Residential)
Fixed amount / rating unit
Base differential use per connection status
67702 properties
$106.60
$7,217

Capital Value
Base differential use per connection status
$41,872,537,000
¢0.042703
$17,881

Commercial, Industrial & Business
Capital Value
Commercial, industrial and business use per connection status
$9,702,032,000
¢0.144444
$14,014

TOTAL

$39,112

Water targeted rate
Base (Residential)
(without water meter)
Fixed amount / rating unit
Base differential use per connection status without a water meter
59693 properties
$143.20
$8,548

Capital Value
Base differential use per connection status without a water meter
$34,115,672,000
¢0.044305
$15,115

Base (Residential)
(with water meter)
Consumption unit charge
Base differential use per connection status with a water meter
n/a
$2.020 / m³
$413

Fixed amount / rating unit
Base differential use per connection status with a water meter
n/a
$116.40
$78

Commercial, Industrial & Business
(without water meter)
Capital Value
Commercial, industrial and business use per connection status without a water meter
$563,721,000
¢0.423437
$2,387

Commercial, Industrial & Business
(with water meter)
Consumption unit charge
Commercial, industrial and business use per connection status with a water meter
n/a
$2.020 / m3
$13,348

Fixed amount / rating unit
Commercial, industrial and business use per connection status with a water meter
n/a
$116.40
$368

TOTAL

$40,256

Stormwater targeted rate
Base (Residential excluding rural)
Capital Value
Base differental use (excluding rural)
$38,888,441,000
¢0.035895
$13,959

Commercial, Industrial & Business (excluding rural)
Capital Value
Commercial, industrial and business use (excluding rural)
$10,079,699,000
¢0.040210
$4,053

TOTAL

$18,012

Base sector targeted rate
Base (Residential)
Capital Value
Residential use
$39,357,906,000
¢0.017089
$6,726

Commercial sector targeted rate
Commercial, Industrial & Business
Capital Value
Commercial, industrial & business use
$11,565,047,000
¢0.042672
$4,935

Downtown targeted rate
Commercial, Industrial & Business
Capital Value
Commercial, industrial & business use located in the downtown area
$7,748,617,000
¢0.180703
$14,002

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
$11,845,000
¢0.121538
$14

Khandallah Business Improvement District targeted rate
Commercial, Industrial & Business
Capital Value
Commercial, industrial & business use located in the Khandallah Business Improvement District area
$13,060,000
¢0.153139
$20

Kilbirnie Business Improvement District targeted rate
Commercial, Industrial & Business
Fixed amount / rating unit
Commercial, industrial & business use located in the Kilbirnie Business Improvement District area
106 properties
$500.00
$53

Capital Value over $1,000,000 per rating unit
Commercial, industrial & business use located in the Kilbirnie Business Improvement District area for all capital value over $1,000,000 CV per rating unit
$81,960,000
¢0.032943
$27

TOTAL

$80

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
126 properties
$365.00
$46

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
$93,920,000
¢0.036212
$34

TOTAL

$80

TOTAL RATES REQUIREMENT (excluding GST)

282,927

Note:

When rates for 2016/17 are assessed, GST will be applied to the final rates. The total rates requirment includes rates remissions but excludes rates penalties which are budgeted separately.

The Total Rates Requirement (Excluding GST) differs from the Revenue from rates in the Prospective Statement of Comprehensive Revenue and Expense as the Revenue from rates includes rates penalties not included in this statement.

Funding Impact Statement — Rating Mechanisms

Rates

Rates are a property tax to fund local government activities. Rates are assessed under the Local Government (Rating) Act 2002 (the Act) on rating units in the Rating Information Database. Where rates requirements are allocated based on property value, the capital value of the property as assessed by the Council’s valuation services provider will apply. The latest citywide revaluation was carried out as at 1 September 2015. This revaluation remains effective for the 2016/17 rating year, except where subsequent maintenance valuations have been required under valuation rules or the Council’s rating policies.

Citywide revaluations are performed every 3 years. The next citywide revaluation will be carried out as at 1 September 2018 and will be effective for the 2019/20 rating year and the two consecutive rating years (subject again to subsequent maintenance valuations).

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. There are no changes to the differential apportionment in 2016/17.

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 solely for sewerage and water where the service is provided.

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 apply, with the exception of targeted rates for sewerage and water for which the land is fully rateable if the service is provided.

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:

30 percent of the cost of the Wellington Regional Economic Development Agency (WREDA) and Venues. This is the equivalent of 100 percent funding of the events attraction and support activity within WREDA.

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

95 percent of the provision of community centres and halls activities

60 percent of the provision of the water network, collection and treatment, and the sewage collection, treatment and disposal network activities

77.5 percent of the stormwater management activity.

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:

50 percent of the cost of the Wellington Regional Economic Development Agency (WREDA) and Venues activities

40 percent of the cost of the Wellington Convention Centre activity

100 percent of retail support (free weekend parking) activity

70 percent of the visitor attractions activity

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 purposes 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 the 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 below) 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 the 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.

Khandallah Business Improvement District Targeted Rate

This rate is set by the Council to fund the Business Improvement District activities of the Khandallah Business Association Incorporated.

The category of land for which this rate is set is on all rating units within the Khandallah Business Improvement District (see map) that are subject to the “commercial, industrial and business” differential, but excluding any rating unit that is a substation.

Liability for this rate is calculated as a rate per dollar of rateable capital value.

Kilbirnie Business Improvement District Targeted Rate

This rate is set by the Council to fund the Business Improvement District activities of the Kilbirnie Business Network.

The category of land for which this rate is set is on all rating units within the Kilbirnie Business Improvement District (see map) that are subject to the “commercial, industrial and business” differential, but excluding any rating unit that is a substation.

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 and commercial property rates inclusive of GST for a selection of billing categories, based on the 2016/17 budget.

Indicative residential property rates (for properties without a water meter)

Indicative suburban commercial property rates (for properties with a water meter). This excludes water by consumption which is charged on actual usage.

Indicative downtown commercial property rates (for properties with a water meter). This excludes water by consumption which is charged on actual usage.

Capital Values

$
2016/17 Rates

$
Increase
over
2015/16
%*

Capital
Values

$
2016/17
Rates

$
Increase
over
2015/16
%*

Capital
Values

$
2016/17
Rates

$
Increase
over
2015/16
%*

200,000
1,122
4.88%

1,000,000
9,916
3.91%

1,000,000
11,994
0.52%

300,000
1,539
5.13%

1,250,000
12,363
3.92%

1,250,000
14,961
0.52%

400,000
1,957
5.27%

1,500,000
14,810
3.93%

1,500,000
17,927
0.52%

500,000
2,374
5.37%

1,750,000
17,257
3.93%

1,750,000
20,894
0.52%

600,000
2,791
5.43%

2,000,000
19,704
3.94%

2,000,000
23,860
0.52%

700,000
3,209
5.48%

2,250,000
22,151
3.94%

2,250,000
26,826
0.52%

800,000
3,626
5.52%

2,500,000
24,598
3.94%

2,500,000
29,793
0.52%

900,000
4,043
5.55%

2,750,000
27,045
3.94%

2,750,000
32,759
0.52%

1,000,000
4,461
5.58%

3,000,000
29,491
3.94%

3,000,000
35,726
0.52%

1,100,000
4,878
5.60%

3,250,000
31,938
3.95%

3,250,000
38,692
0.52%

1,200,000
5,295
5.61%

3,500,000
34,385
3.95%

3,500,000
41,659
0.52%

1,300,000
5,713
5.63%

3,750,000
36,832
3.95%

3,750,000
44,625
0.52%

1,400,000
6,130
5.64%

4,000,000
39,279
3.95%

4,000,000
47,591
0.52%

1,500,000
6,547
5.65%

4,250,000
41,726
3.95%

4,250,000
50,558
0.53%

1,600,000
6,965
5.66%

4,500,000
44,173
3.95%

4,500,000
53,524
0.53%

1,700,000
7,382
5.67%

4,750,000
46,620
3.95%

4,750,000
56,491
0.53%

1,800,000
7,800
5.68%

5,000,000
49,067
3.95%

5,000,000
59,457
0.53%

*This is the indicative percentage rates increase, taking into account average increases in property valuations for the relevant billing category.

Rates Remission and Postponement Policies

Refer to the Council Rates Remission and Postponement Policies. There are no changes to the rates remission and postponement policies.

Financial Statements

Prospective Statement of Comprehensive Revenue and Expense

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

REVENUE

Revenue from rates
270,907
284,138
13,231

Revenue from development contributions
2,000
2,000
-

Revenue from grants, subsidies and reimbursements
42,511
41,037
(1,474)
1

Revenue from operating activities
121,287
121,965
678
1

Investments
20,135
20,447
312

Fair value movement on investment property revalaution
3,665
3,989
324

Other revenue
1,050
1,050
-

Finance revenue
637
650
13

TOTAL REVENUE
462,192
475,276
13,084

EXPENSE

Finance expense
22,961
25,617
2,656
2

Expenditure on operating activities
316,333
334,923
18,590
3

Depreciation and amortisation
99,797
101,975
2,178

TOTAL EXPENSE
439,091
462,515
23,424

NET SURPLUS FOR THE YEAR
23,101
12,761
(10,340)
4

OTHER COMPREHENSIVE REVENUE AND EXPENSE

Fair value movement - property, plant and equipment - net
-
106,241
106,241

Share of equity accounted surplus from associates
-
-
-

TOTAL OTHER COMPREHENSIVE REVENUE AND EXPENSE
-
106,241
106,241

TOTAL COMPREHENSIVE REVENUE AND EXPENSE FOR THE YEAR
23,101
119,002
95,901

Notes:

Details of specific changes to revenue from activities can be found in the Funding Impact Statements.

Additional interest costs due to increased spending on capital projects.

Details of specific changes to operational costs can be found in the Funding Impact Statements.

4. EXPLANATION OF SURPLUS | 2016/17 AP
Items that are presented in the Prospective Statement of Comprehensive Revenue and Expense but do not offset rates |
BALANCED BUDGET | 0
DEPRECIATION NOT FUNDED BY RATES: |
Depreciation collected for capital assets that will not be renewed |
NZTA Transport funded projects | (7,597)
General | (91)
Moa Point sewerage treatment plant | (3,040)
Decommissioned Living Earth joint venture plant | (201)
Wellington Waterfront Limited depreciation | (3,396)
TOTAL DEPRECIATION NOT FUNDED BY RATES | (14,326)
REVENUE RECEIVED FOR CAPITAL PURPOSES: |
Funding received from external parties for major capital expenditure projects |
NZTA capital funding | 14,868
Housing capital grant and ring-fenced surplus | (5,909)
Development contributions | 18,082
Bequests, trust and other external funding | 2,000
TOTAL REVENUE RECEIVED FOR CAPITAL PURPOSES | 29,041
ITEMS FUNDED FROM PRIOR YEAR SURPLUSES: |
City Growth Fund | (3,000)
Lyall Bay Surf Club | (200)
Toitu Pōneke Sports Hub | (150)
TOTAL ITEMS FUNDED FROM PRIOR YEAR SURPLUSES | (3,350)
ADDITIONAL OPERATIONAL EXPENDITURE ITEMS: |
Operational expenditure items identified as equitable to be funded through other funding mechanisms |
Alex Moore Park | 12
Cable Car | (875)
Odyssey-related | (3,620)
Reserves purchases and development fund | (30)
Roading | (848)
Toitu Pōneke Sports Hub | (520)
Weathertight homes funding | 7,227
Westpac Stadium | (4,575)
Unrealised fair value adjustment for loans and receivables | 637
Fair value movement on investment property revaluation | 3,989
TOTAL ADDITIONAL OPERATIONAL EXPENDITURE ITEMS | 1,396
TOTAL SURPLUS | 12,761

Prospective Statement of Financial Position

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

ASSETS

Current assets

Cash and cash equivalents
1,249
1,714
465

Receivables and recoverables
42,333
42,834
501

Prepayments
12,096
13,433
1,338

Inventories
888
906
18

Total current assets
56,566
58,887
2,322

Non-current assets

Other financial assets
10,473
11,954
1,481
1

Intangibles
28,936
28,578
(358)

Investment properties
196,566
213,931
17,365
2

Property, plant & equipment
6,674,860
6,771,399
75,039
3

Investment in subsidiaries
3,809
5,071
1,262

Investment in associates
19,504
19,465
(39)

Total non-current assets
6,934,148
7,050,398
94,750

TOTAL ASSETS
6,990,714
7,109,285
97,071

LIABILITIES

Current liabilities

Exchange transactions, taxes and transfers payable
59,122
62,477
3,355
4

Revenue in advance
33,496
16,717
(16,779)
5

Borrowings
219,789
267,279
36,138

Employee benefit liabilities and provisions
6,845
7,180
335

Provision for other liabilities
11,790
7,972
(3,818)

Total current liabilities
331,042
361,625
19,231

Non-current liabilities

Exchange transactions, taxes and transfers payable
630
630
-

Borrowings
196,474
211,766
5,144

Employee benefit liabilities and provisions
1,708
1,593
(115)

Provisions for other liabilities
23,945
18,231
(5,714)
6

Total non-current liabilities
222,757
232,220
(685)

TOTAL LIABILITIES
553,798
593,845
18,545

EQUITY

Accumulated funds and retained earnings
4,994,681
5,011,091
16,410

Revaluation reserves
1,429,106
1,489,442
60,336
7

Hedging reserve
137
-
(137)

Fair value through other comprehensive revenue and expense reserve
63
106
43

Restricted funds
12,928
14,801
1,873

TOTAL EQUITY
6,436,915
6,515,440
78,525

TOTAL EQUITY AND LIABILITIES
6,990,714
7,109,285
97,071

Notes:

Projected increase in New Zealand Local Government Funding Agency borrower notes.

The investment property revaluation estimated for prior periods was less than the actual, in addition there is the expected movement in investment property revaluation for the 2016/17 year.

Budgeted increase in capital expenditure spend for the 2016/17 year less depreciation. More information can be found in the individual Funding Impact Statements.

Increased spend expected in 2016/17 has resulted in a higher than 2015/16 forecast level of trade payables.

Movement in revenue in advance for the Housing Upgrade Project.

Movement in weathertight homes provision.

Variance between estimated revaluation movement for prior periods and the actual and expected revaulation movement from 2016/17.

Prospective Statement of Changes In Equity

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

EQUITY – OPENING BALANCES

Accumulated funds and retained earnings
4,972,119
4,999,468
27,349

Revaluation reserves
1,429,106
1,383,201
(45,905)

Hedging reserve
137
-
(137)

Fair value through other comprehensive revenue and expense reserve
63
106
43

Restricted funds
12,389
13,663
1,274

TOTAL EQUITY – OPENING BALANCE
6,413,814
6,396,438
(17,376)

CHANGES IN EQUITY

Retained earnings

Net surplus for the year
23,101
12,761
(10,340)

Transfer to restricted funds
(4,518)
(4,518)
-

Transfer from restricted funds
3,979
3,380
(599)

Revaluation reserves

Fair value movement - property, plant and equipment - net
-
106,241
106,241

Hedging reserve

Share of other comprehensive income
-
-
-

Restricted Funds

Transfer to retained earnings
(3,979)
(3,380)
599

Transfer from retained earnings
4,518
4,518
-

TOTAL COMPREHENSIVE REVENUE AND EXPENSE
23,101
119,002
95,901

EQUITY – CLOSING BALANCES

Accumulated funds and retained earnings
4,994,681
5,011,091
16,410

Revaluation reserves
1,429,106
1,489,442
60,336

Hedging reserve
137
-
(137)

Fair value through other comprehensive revenue and expense reserve
63
106
43

Restricted funds
12,928
14,801
1,873

TOTAL EQUITY – Closing balance
6,436,915
6,515,440
78,525

Prospective Statement of Cash Flows

2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from rates - Council
259,728
292,828
33,100

Receipts from rates - Greater Wellington Regional Council
53,018
56,838
3,820
1

Receipts from activities and other revenue
136,363
100,082
(36,281)
2

Receipts from grants and subsidies - operating
36,026
33,017
(3,009)

Receipts from grants and subsidies - capital
6,485
8,020
1,535

Receipts from investment property lease rentals
9,135
9,335
200

Cash paid to suppliers and employees
(294,178)
(298,973)
(4,795)

Rates paid to Greater Wellington Regional Council
(53,018)
(56,838)
(3,820)
1

Grants paid
(35,583)
(42,672)
(7,089)

NET CASH FLOWS FROM OPERATING ACTIVITIES
117,976
101,637
(16,339)

CASH FLOWS FROM INVESTING ACTIVITIES

Dividends received
11,000
11,112
112

Interest received
637
650
13

Proceeds from sale of property, plant and equipment
2,650
4,600
1,950

Purchase of intangibles
(11,195)
(5,102)
6,093
3

Purchase of property, plant and equipment
(146,857)
(165,583)
(18,726)

NET CASH FLOWS FROM INVESTING ACTIVITIES
(143,765)
(154,323)
(10,558)

CASH FLOWS FROM FINANCING ACTIVITIES

New borrowings
239,327
298,783
59,456

Repayment of borrowings
(197,932)
(227,516)
(29,584)

Interest paid on borrowings
(22,763)
(26,690)
(3,927)

NET CASH FLOWS FROM FINANCING ACTIVITIES
18,632
44,577
4,445

Net increase/(decrease) in cash and cash equivalents
(7,157)
(8,109)
(952)

Cash and cash equivalents at beginning of year
8,406
9,823
1,417

CASH AND CASH EQUIVALENTS AT END OF YEAR
1,249
1,714
465

Notes:

Wellington City Council collects rates on behalf of GWRC.

Decrease in income from activites is detailed in the Funding Impact Statements by Activity.

Decrease in budgeted spend on information technology-related items in 2016/17.

Prospective Statement of Changes in Restricted Funds

OPENING BALANCE
2016/17
$000
DEPOSITS

$000
EXPENDITURE

$000
CLOSING BALANCE
2016/17
$000
Purpose

SPECIAL RESERVES AND FUNDS

Reserve purchase and development fund
999
-
-
999
Used to purchase and develop reserve areas within the city.

Economic initiatives development fund
2,976
3,000
(2,415)
3,561

Insurance reserve
9,277
1,500
(950)
9,827
Allows the Council to meet the uninsured portion of insurance claims

Total special reserves and funds
13,252
4,500
(3,365)
14,387

TRUSTS AND BEQUESTS

A Graham Trust
3
-
-
3
For the upkeep of a specific area of Karori Cemetery

A W Newton Bequest
319
16
(15)
320
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
14
1
-
15
For the purchase of children's books

F L Irvine Smith Memorial
7
-
-
7
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
20
1
-
21
For the purchase of books on the Commonwealth

Schola Cantorum Trust
7
-
-
7
For the purchase of musical scores

Terawhiti Grant
10
-
-
10
To be used on library book purchases

Total trusts and bequests
411
18
(15)
414

Total restricted funds
13,663
4,518
(3,380)
14,801

Summary of significant accounting policies

The following indicative financial statements show the 2015/16 financial year’s income and expenditure, and financial position.

Balanced budget

The Council operates a ”balanced budget”. This means that rates only fund what is required to pay for the services delivered each year.

Note that the prospective statement of comprehensive financial performance shows a surplus, mainly because revenue received for capital expenditure is required to be shown as income (operating).

So although there is a net surplus because of the accounting treatment, the Council does not budget or rate to make an operating profit.

The capital funding that is the primary cause of the ‘surplus’ mainly comes from third parties like the New Zealand Transport Agency (NZTA) for roads, and Housing New Zealand to partially fund the social housing upgrade programme.

The capital expenditure that this pays for is shown as changes in assets/equity and in the statement of financial position.

The Funding and Financial Statements attached are based on the project and programmes outlined and are informed by the Financial Strategy and significant forecasting assumptions.

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. As a defined public entity under the Public Audit Act 2001, for the purposes of financial reporting, the Council is audited by the Auditor General, and is classed as a Public Sector Public Benefit Entity.

These draft 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

The draft 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 draft prospective financial statements have been prepared to comply with Public Benefit Entity Accounting Standards (PBE Standards) for a Tier 1 entity. A Tier 1 entity is defined as being either publicly accountable or large (ie. expenses over $30m).

The reporting period for these prospective financial statements is the 10 year period ending 30 June 2025. 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 and the discount rate for forecast the long-term cost of borrowing are as per the “Significant forecasting assumptions” which are disclosed in the Long-term Plan 2015–25 on pages 209–210.

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 and these variations may be material.

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 or individual and directly receives approximately equal value in a willing arm’s length transaction (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.

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.

Approximately equal value

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. Some goods or services that the Council provides (eg the sale of goods at market rates) are defined as being exchange transactions. Only a few services provided by the Council operate on a full user pays, cost recovery or breakeven basis and these are considered to be exchange transactions unless they are provided at less than active and open market prices.

Most of the services that the Council provides for a fee are subsidised by rates and therefore do not constitute an approximately equal exchange. Accordingly most of the Council’s revenue is categorised as non-exchange.

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 grant or subsidy. A liability is recognised when the grant or subsidy received are subject to a condition such that the Council has the obligation to return those funds received in the event that the conditions attached to them 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 relating to the 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 when the Council has met the obligation for which the development contribution was charged.

Rendering of services

Revenue considered to be from exchange transactions is recognised by reference to the stage of completion of the transaction at the reporting date.

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.

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 (eg 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 or individual 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 that 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

The Council, as a local authority, is only liable for income tax on the surplus or deficit for the year derived from any Council controlled trading organisations and 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 3 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 subsidiaries and associates), and bank deposits with maturity dates of more than 3 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 that 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 that 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 1 year or beyond 1 year where a delay has occurred that 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.

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 3 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 3 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 3 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 3 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 percent 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 wastewater 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:

Asset | Category | Rate
Land | unlimited | not depreciated
Buildings | 1 ~75 | 1.33 ~ 100%
Civic Centre Complex | 10 ~ 78 | 1.28 ~ 10%
Plant and equipment | 3 ~ 100 | 1 ~ 33.3%
Library collection | 3 ~ 11 | 9.1 ~ 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 ~ 40 | 2.5 ~ 7.7%
Traffic islands | 80 | 1.25%
Bridges and tunnels | 3 ~ 175 | 0.57 ~ 33.3%
Drainage | 60 ~130 | 0.8% ~ 130%
Retaining walls | 30 ~ 75 | 1.33 ~ 3.33%
Pedestrian walkways | 10 ~ 50 | 2 ~ 10%
Pedestrian furniture | 10 ~ 25 | 4 ~ 10%
Barriers (handrails, guardrails) | 25 | 4%
Lighting | 3 ~ 50 | 2 ~ 33.3%
Cycleway network | 25 | 4%
Parking equipment | 8 ~ 10 | 10 ~ 12.5%
Passenger transport facilities | 25 | 4%
Traffic infrastructure | 5 ~ 40 | 2.5 ~ 20%
Drainage, waste and water: |  |
Pipework | 50 ~ 130 | 0.77 ~ 2%
Fittings | 25 ~ 110 | 0.91 ~ 4%
Water pump stations | 20 ~ 100 | 1 ~ 5%
Water reservoirs | 25 ~ 100 | 1 ~ 4%
Equipment 20 5% |  |
Sewer pump stations | 20 ~ 80 | 1.25 ~ 5%
Tunnels | 3 ~ 175 | 0.57 ~ 33.3%
Treatment plants | 3 ~ 100 | 1 ~ 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:

Asset Category
Useful Life
(years)
Depreciation
Rate

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 Group 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 Group (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, 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 percent 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 2 year period only and transfer ongoing claims to ACC at the end of the 2 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 Group 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 and the Group.

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 3 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 the Group 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 Group 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

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 draft 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 Long-term 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 Long-term 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.

(iv) Other disclosures

These prospective financial statements were adopted as part of the assumptions that form the Annual Plan 2016/17 for issue on 29 July 2016 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.

Projects and Programmes

Operational Expenditure

Strategy
Strategy Name
Activity
Activity Name
Activity Component
Activity Component Name
AP Project
Project name
Income/Expense
2015/16
LTP
$000
2016/17 AP
$000

1
Governance
1.1
Governance, information and engagement
1.1.1
City governance and engagement
C530
Annual Planning
Expense
1,109
1,422

C532
Policy
Expense
1,478
1,333

C534
Committee & Council Process
Expense
5,810
6,661

Income
(12)
(385)

C582
Strategic Planning
Expense
954
941

C590
Tawa Comm Brd - Discretionary
Expense
11
11

C616
Smart Capital - Marketing
Expense
539
541

City governance and engagement Total

9,888
10,524

1.1.2
Civic information
C334
WCC City Service Centre
Expense
983
1,043

Income
(117)
(119)

C338
Call Centre SLA
Expense
2,255
2,278

Income
(12)
(12)

C340
Valuation Services Contract
Expense
680
728

Income
(184)
(187)

C355
Lands Information
Expense
1,517
1,493

Civic information Total

5,122
5,223

1.1.3
City archives
C373
Archives
Expense
1,758
1,967

Income
(182)
(186)

City archives Total

1,575
1,781

Governance, information and engagement Total

16,586
17,528

1.2
Māori and Mana Whenua partnerships
1.2.1
Māori and Mana Whenua partnerships
C529
Funding agreements – Māori
Expense
203
193

C683
Māori Engagement
Expense
79
103

Māori and Mana Whenua partnerships Total

281
295

Māori and Mana Whenua partnerships Total

281
295

Governance Total

16,867
17,823

2
Environment
2.1
Gardens, beaches and green open spaces
2.1.1
Local parks and open spaces
A004
Parks and Reserves Planning
Expense
646
641

A011
Reserves Unplanned Maintenance
Expense
171
181

C515
Turf Management
Expense
1,184
1,173

Income
(8)
(8)

C517
Park Furniture Maintenance
Expense
1,637
1,645

C518
Maint- Park/Build/Infrastruct
Expense
1,800
1,889

Income
(199)
(203)

C563
Horticultural Operations
Expense
1,900
1,897

Income
(30)
(31)

C564
Arboricultural Operations
Expense
1,417
1,365

Income
(178)
(181)

Local parks and open spaces Total

8,341
8,369

2.1.2
Botanical gardens
C560
Botanic Gardens Services
Expense
4,752
4,724

Income
(387)
(394)

Botanical gardens Total

4,365
4,330

2.1.3
Beaches and coast operations
C298
Coastal Operations
Expense
1,409
1,283

Income
(51)
(52)

Beaches and coast operations Total

1,358
1,231

2.1.4
Roads open spaces
C006A
Road Corridor Growth Control
Expense
1,293
1,240

Income
(411)
(332)

C289
Street Cleaning
Expense
6,854
7,472

Income
(284)
(300)

Roads open spaces Total

7,451
8,079

2.1.5
Town belts
A008
Hazardous Trees Removal
Expense
446
458

Income
(6)
(6)

C514
Town Belts Planting
Expense
707
708

C524
Townbelt/Reserves Management
Expense
3,511
3,557

Income
(244)
(249)

Town belts Total

4,415
4,467

2.1.6
Community environmental initiatives
C513
Community greening initiatives
Expense
623
658

C652
Environmental Grants Pool
Expense
120
100

Community environmental initiatives Total

743
757

2.1.7
Walkways
C561
Walkway Maintenance
Expense
582
604

Walkways Total

582
604

2.1.8
Biodiversity (Pest management)
C509
Weeds & Hazardous Trees Monit
Expense
1,366
1,294

Income
(38)
(39)

C510
Animal Pest Management
Expense
339
530

Biodiversity (Pest management) Total

1,666
1,785

2.1.9
Waterfront Public Space
C701
Waterfront Public Space Management
Expense
1,737
4,856

Income
(301)
(307)

Waterfront Public Space Total

1,436
4,549

Gardens, beaches and green open spaces Total

30,357
34,172

2.2
Waste reduction and energy conservation
2.2.1
Waste minimisation, disposal and recycling management
C076
Landfill Operations & Maint
Expense
3,396
3,747

Income
(5,151)
(5,469)

C078A
Suburban Refuse Collection
Expense
2,856
2,935

Income
(3,362)
(3,392)

C079
Domestic Recycling
Expense
4,676
4,717

Income
(3,304)
(3,519)

C391
Waste Minimisation Info
Expense
1,817
1,776

Income
(1,013)
(880)

C558
Litter Enforcement
Expense
92
92

Waste minimisation, disposal and recycling management Total

7
8

2.2.2
Closed landfills aftercare
C077
Closed Landfill Gas Migr Monit
Expense
522
414

Closed landfills aftercare Total

522
414

2.2.3
Energy efficiency and conservation
C662
Smart Energy
Expense
282
416

Income
(46)
(60)

Energy efficiency and conservation Total

236
356

Waste reduction and energy conservation Total

765
777

2.3
Water
2.3.1
Water network
C112
Water - Meter Reading
Expense
134
153

C113
Water - Network Maintenance
Expense
3,894
4,053

C412
Water - Water Connections
Income
(35)
(35)

C462
Water - Pump Stations Maintenance / Ops
Expense
960
1,028

C463
Water - Asset Stewardship
Expense
17,155
17,623

C536
Water - Reservoir / Dam Maintenance
Expense
103
177

C547
Water - Monitoring & Investigation
Expense
531
607

C671
Water - Asset Management
Expense
618
717

Water network Total

23,360
24,322

2.3.2
Water collection and treatment
C115
Water - Bulk Water Purchase
Expense
14,932
15,934

Water collection and treatment Total

14,932
15,934

Water Total

38,292
40,256

2.4
Wastewater
2.4.1
Sewage collection and disposal network
A041
Wastewater - Asset Stewardship
Expense
13,748
13,959

Income
(615)
(627)

C084
Wastewater - Trade Waste Monitoring & Investigation
Expense
222
284

C086A
Wastewater - Network Maintenance
Expense
2,226
2,391

C497
Wastewater - Asset Management
Expense
561
655

C501
Wastewater - Monitoring & Investigation
Expense
1,289
1,569

C502
Wastewater - Pump Station Maintenance / Ops
Expense
1,111
1,200

Sewage collection and disposal network Total

18,542
19,431

2.4.2
Sewage treatment
C087
Wastewater - Treatment Plants
Expense
20,779
21,607

C347
Sewerage Disposal
Expense
1,875
1,933

Income
(618)
(618)

Sewage treatment Total

22,036
22,923

Wastewater Total

40,578
42,354

2.5
Stormwater
2.5.1
Stormwater management
A041A
Stormwater - Asset Stewardship
Expense
12,984
13,047

C086C
Stormwater - Network Maintenance
Expense
1,966
2,227

C090
Stormwater - Monitoring & Investigation
Expense
721
834

Income
(10)
(10)

C498
Stormwater - Asset Management
Expense
894
946

C677
Drainage Maintenance
Expense
984
1,050

Income
(136)
(125)

C689
Stormwater - Pump Station Maintenance / Ops
Expense
38
43

Stormwater management Total

17,442
18,013

Stormwater Total

17,442
18,013

2.6
Conservation attractions
2.6.1
Conservation visitor attractions
A288
Karori Sanctuary
Expense
1,490
1,807

C046
Wellington Zoo Trust
Expense
4,969
5,182

C426
Marine Conservation Centre
Expense
0
0

Conservation visitor attractions Total

6,459
6,989

Conservation attractions Total

6,459
6,989

Environment Total

133,893
142,561

3
Economic Development
3.1
City promotions and business support
3.1.1
WREDA
C105
Positively Wellington Tourism
Expense
5,630
5,630

C581
Events Fund
Expense
4,723
4,273

C686
Wellington Venues
Expense
18,596
18,207

Income
(14,365)
(14,369)

C690
Destination Wellington
Expense
1,775
1,775

C695
City Innovation
Expense
836
937

WREDA Total

17,195
16,453

3.1.2
Wellington convention centre
C703
Wellington Convention Centre
Expense
0
1,051

Income
0
(1,051)

Wellington convention centre Total

0
0

3.1.3
Retail support (free weekend parking)
C105B
CBD Weekend Parking
Expense
1,356
1,357

Retail support (free weekend parking) Total

1,356
1,357

3.1.4
WEID, economic growth and economic grants
C647
Economic Development Grant Pool
Expense
50
50

C693
Economic Growth Strategy
Expense
549
536

C696
City Growth Fund
Expense
3,000
2,415

WEID, economic growth and economic grants Total

3,599
3,001

3.1.5
Major economic projects
C709
Westpac Stadium
Expense
0
5,000

Major economic projects Total

0
5,000

3.1.6
Regional and external relations
C145
International Relations
Expense
572
661

Regional and external relations Total

572
661

3.1.7
Business improvement districts
C645
Marsden Village
Expense
14
14

C698
Miramar BID
Expense
100
180

Business improvement districts Total

114
194

City promotions and business support Total

22,836
26,666

Economic Development Total

22,836
26,666

4
Cultural Wellbeing
4.1
Arts and Cultural Activities
4.1.1
Galleries and museums (WMT)
C102
Wellington Museums Trust
Expense
8,708
9,008

C702
Museum of Conflict
Expense
500
500

C707
Movie Museum
Expense
0
77

Income
0
(77)

Galleries and museums (WMT) Total

9,208
9,508

4.1.2
Visitor attractions (Te Papa/Carter Observatory)
C440
Te Papa Funding
Expense
2,250
2,250

C659
Carter Observatory
Expense
590
667

Visitor attractions (Te Papa/Carter Observatory) Total

2,840
2,917

4.1.3
Arts and cultural festivals
C130E
Community Events Programme
Expense
2,670
3,211

Income
(410)
(417)

C587
Neighbour's Day
Expense
22
22

Arts and cultural festivals Total

2,283
2,815

4.1.4
Cultural grants
C661
Cultural Grants Pool
Expense
858
1,161

Cultural grants Total

858
1,161

4.1.5
Access and support for community arts
C101A
Wgtn Conv Cntr Comm Subsidy
Expense
200
200

C130K
Community Arts Programme
Expense
459
567

Income
(62)
(63)

Access and support for community arts Total

597
704

4.1.6
Arts partnerships
C422
NZSO Subsidy
Expense
216
216

C605
Toi Pōneke Arts Centre
Expense
1,243
1,394

Income
(515)
(525)

C670
Public Art Fund
Expense
393
442

C710
New Zealand Ballet
Expense
153
154

C713
Orchestra Wellington
Expense
272
275

Arts partnerships Total

1,761
1,956

4.1.7
Regional Amenities Fund
C691
Regional Amenities Fund
Expense
609
609

Regional Amenities Fund Total

609
609

Arts and Cultural Activities Total

18,155
19,670

Cultural Wellbeing Total

18,155
19,670

Strategy
Strategy Name
Activity
Activity Name
Activity Component
Activity Component Name
AP Project
Project name
Income/Expense
2015/16 LTP
$000
2016/17 AP
$000

5
Social and Recreation
5.1
Recreation promotion and support
5.1.1
Swimming pools
C034
Swimming Pools Operations
Expense
20,476
20,924

Income
(7,587)
(7,551)

Swimming pools Total

12,889
13,373

5.1.2
Sportsfields
C562
Sportsfields Operations
Expense
3,405
3,514

Income
(295)
(301)

Sportsfields Total

3,110
3,213

5.1.3
Sportsfields (Synthetic)
C682
Synthetic Turf Sport Operations
Expense
1,354
1,353

Income
(524)
(534)

Sportsfields (Synthetic) Total

830
819

5.1.4
Recreation centres
C037
Recreation Centres
Expense
2,722
2,713

Income
(753)
(767)

C669
ASB Sports Centre
Expense
6,980
7,285

Income
(1,904)
(1,940)

Recreation centres Total

7,046
7,290

5.1.5
Recreation partnerships
C008
Basin Reserve Trust
Expense
1,043
1,062

C384
Recreational NZ Academy Sport
Expense
45
45

Recreation partnerships Total

1,088
1,107

5.1.6
Playgrounds
C559
PlayGnd & Skate Facilty Mtnc
Expense
737
795

Playgrounds Total

737
795

5.1.7
Marinas
C418
Marina Operations
Expense
602
673

Income
(592)
(603)

Marinas Total

10
70

5.1.8
Golf course
C688
Municipal Golf Course
Expense
270
260

Income
(77)
(92)

Golf course Total

193
169

5.1.9
Recreation programmes
C130D
Recreation Programmes
Expense
282
280

Income
(15)
(15)

Recreation programmes Total

267
264

Recreation promotion and support Total

26,169
27,101

5.2
Community support
5.2.1
Libraries
C050
Library Network - Wide Operation
Expense
14,840
16,028

Income
(982)
(869)

C467
Branch Libraries
Expense
6,003
6,467

Income
(608)
(615)

Libraries Total

19,253
21,010

5.2.2
Access support (Leisure Card)
C419
Passport to Leisure Programme
Expense
105
102

Access support (Leisure Card) Total

105
102

5.2.3
Community advocacy
C130G
Community Advice & Information
Expense
1,279
1,219

Community advocacy Total

1,279
1,219

5.2.4
Grants (Social and Recreation)
C130A
Community Grants
Expense
215
262

C637
Support for Wgtn Homeless
Expense
142
140

C678
Social & Recreational Grant Pool
Expense
3,287
3,822

Grants (Social and Recreation) Total

3,643
4,224

5.2.5
Housing
C125
Housing Operations and Mtce
Expense
23,741
23,366

Income
(21,635)
(18,261)

C680
Housing Upgrade Project
Expense
1,799
1,739

Income
(21,637)
(19,017)

Housing Total

(17,731)
(12,173)

5.2.6
Community centres and halls
A468
Cmty Props Programmed Maint
Expense
498
684

Income
(4)
(4)

C068
Community Halls Ops and Maint.
Expense
189
210

Income
(38)
(39)

C130B
Community Prop & Facility Ops
Expense
2,279
2,347

Income
(188)
(192)

C130I
Accommodation Assistance Fund
Expense
234
232

Community centres and halls Total

2,971
3,238

Community support Total

9,519
17,620

5.3
Public health and safety
5.3.1
Burials and cremations
C007
Burial & Cremation Operations
Expense
1,648
1,655

Income
(803)
(858)

Burials and cremations Total

845
797

5.3.2
Public toilets
C072
Contracts - Public Conveniences
Expense
2,661
2,962

Public toilets Total

2,661
2,962

5.3.3
Public health regulations
C478
Public Health
Expense
4,648
4,577

Income
(3,211)
(3,245)

C675
Noise Monitoring
Expense
628
676

Public health regulations Total

2,065
2,009

5.3.4
City safety
C673
Anti-Graffiti Flying Squad
Expense
635
683

P169
Safe City Project Operations
Expense
2,039
2,132

City safety Total

2,674
2,815

5.3.5
WREMO
C540
Emergency Mgmt Plan & Train
Expense
1,090
1,273

Income
(14)
(14)

C543
Emgncy Mgmt Rural Fire Mgmt
Expense
247
261

Income
(29)
(4)

WREMO Total

1,294
1,517

Public health and safety Total

9,540
10,099

Social and Recreation Total

45,229
54,820

6
Urban Development
6.1
Urban planning, heritage and public spaces development
6.1.1
Urban planning and policy
C533
District Plan
Expense
2,027
2,055

Income
(20)
(20)

C650
Growth Spine Centres
Expense
250
39

Urban planning and policy Total

2,257
2,074

6.1.2
Waterfront development
C711
City Shaper Developments
Expense
972
1,326

Waterfront development Total

972
1,326

6.1.3
Public spaces and centres development
C350
Maintenance of City Art Works
Expense
320
432

C370
Public Space/Centre Devl. Plan
Expense
1,849
1,792

Public spaces and centres development Total

2,169
2,224

6.1.4
Built heritage development
P065
City Heritage Development
Expense
1,498
1,998

Built heritage development Total

1,498
1,998

Urban planning, heritage and public spaces development Total

6,896
7,621

6.2
Building and development control
6.2.1
Building control and facilitation
C480
Building Control/Facilitation
Expense
13,107
12,892

Income
(9,152)
(9,067)

C685
Weathertight Homes
Expense
703
732

Building control and facilitation Total

4,657
4,556

6.2.2
Development control and facilitation
C479
Development Cntrl/Facilitation
Expense
5,981
5,971

Income
(2,899)
(2,899)

Development control and facilitation Total

3,082
3,072

6.2.3
Earthquake risk mitigation - built environment
P057
Earthquake Risk Building Proj.
Expense
1,710
1,056

Earthquake risk mitigation - built environment Total

1,710
1,056

Building and development control Total

9,449
8,684

Urban Development Total

16,345
16,305

7
Transport
7.1
Transport
7.1.1
Transport planning
C681
Ngauranga to Airport Corridor
Expense
691
1,647

P249
Network Planning
Expense
452
1,004

Income
(86)
0

Transport planning Total

1,057
2,651

7.1.2
Vehicle network
C304
Road Maintenance&Storm Cleanup
Expense
1,649
1,735

Income
(687)
(720)

C312
Mtc Tawa Shared Driveways
Expense
37
35

C441
Walls, Bridges & Tunnel Mntnce
Expense
282
277

Income
(101)
(85)

C444
Drains & Walls Asset Stewardship
Expense
6,501
6,821

Income
(16)
(49)

C445
Kerb & Channel Maintenance
Expense
723
819

Income
(314)
(354)

C453
Vehicle Network Asset Stewardship
Expense
13,358
14,317

Income
(204)
(274)

C656
Port and Ferry Access
Expense
96
95

Vehicle network Total

21,322
22,619

7.1.3
Cycle network
C493
Cycleways Maintenance
Expense
96
110

Income
(36)
(47)

C577
Cycleway Asset Stewardship
Expense
365
228

C694
Cycleways Planning
Expense
1,199
1,038

Cycle network Total

1,625
1,329

7.1.4
Passenger transport network
C072A
Passenger Transport Facilities
Expense
658
599

Income
(486)
(286)

C550
Bus Shelter Contract Income
Expense
5
6

Income
(464)
(570)

C576
Passenger Transport Asset Stew
Expense
673
752

C655
Bus Priority Plan
Expense
109
89

C708
Cable Car
Expense
0
1,005

C712
Public Transport Trials
Expense
275
0

Passenger transport network Total

770
1,594

7.1.5
Pedestrian network
C307
Street Furniture Maintenance
Expense
360
441

Income
(6)
(6)

C377
Footpaths Asset Stewardhip
Expense
5,175
5,571

C448
Pedestrian Network Maintenance
Expense
842
882

Income
(33)
(34)

C492
Ped Network Structures Maint
Expense
171
167

Pedestrian network Total

6,509
7,021

7.1.6
Network-wide control and management
A026
Traffic Signals System Maintenance
Expense
1,282
1,389

Income
(548)
(590)

A153A
Traffic Control Asset Stewards
Expense
2,502
2,882

Income
(33)
(88)

C026C
Road Marking Maintenance
Expense
948
1,289

Income
(402)
(551)

C452
Traffic Signs Maintenance
Expense
559
571

Income
(197)
(204)

C481
Network Activity Management
Expense
1,508
1,394

Income
(874)
(891)

Network-wide control and management Total

4,746
5,201

7.1.7
Road safety
C026B
Street Lighting Maintenance
Expense
3,064
3,059

Income
(1,265)
(1,319)

C450
Transport Education & Promotion
Expense
631
772

Income
(227)
(231)

C494
Fences & Guardrails Maint
Expense
394
397

Income
(108)
(104)

C575
Safety Asset Stewardship
Expense
2,006
2,125

Road safety Total

4,496
4,698

Transport Total

40,524
45,114

7.2
Parking
7.2.1
Parking
C290
Parking Services & Enforcement
Expense
12,382
12,639

Income
(26,151)
(27,124)

C378
Waterfront Parking Services
Expense
1,022
1,286

Income
(1,304)
(1,171)

Parking Total

(14,051)
(14,370)

Parking Total

(14,051)
(14,370)

Transport Total

26,473
30,744

10
Council
10.1
Organisational Projects
10.1.1
Organisational
A312
Waterfront Commercial Property Services
Expense
6,609
3,418

Income
(2,600)
(2,670)

C332
Commercial Property Man & Serv
Expense
3,956
3,910

Income
(2,855)
(2,910)

C333
Civic Centre Facilities Managt
Expense
467
216

Income
(212)
(216)

C374
Information Services SLA
Expense
4,556
1,709

Income
(71)
(1,709)

C388
NZTA Income on Capex Work
Income
(12,668)
(14,868)

C700
Waterfront Utilities Management
Expense
440
428

Income
(416)
(423)

ORG
Organisation
Expense
4,467
8,451

Income
(285,291)
(312,700)

Organisational Total

(283,618)
(317,364)

Organisational Projects Total

(283,618)
(317,364)

Council Total

(283,618)
(317,364)

Capital Expenditure

Strategy
Strategy Name
Activity
Activity Name
Activity Component
Activity Component Name
AP Project
Project name
Income/Expense
2015/16
LTP
$000
2016/17 AP
$000

1
Governance
1.1
Governance, information and engagement
1.1.1
City governance and engagement
CX420
Committee & Council Processes
Expense
0
116

City governance and engagement Total

0
116

Governance, information and engagement Total

0
116

Governance Total

0
116

2
Environment
2.1
Gardens, beaches and green open spaces
2.1.1
Local parks and open spaces
CX284
Park Structures - upgrades & renewals
Expense
471
400

CX436
Parks Infrastructure
Expense
165
305

CX510
Plimmer Bequest Project
Expense
650
0

Local parks and open spaces Total

1,286
705

2.1.2
Botanical gardens
CX348
Botanic Garden
Expense
433
530

Botanical gardens Total

433
530

2.1.3
Beaches and coast operations
CX290
Coastal - upgrades
Expense
91
1,052

CX349
Coastal
Expense
136
124

Beaches and coast operations Total

227
1,176

2.1.5
Town belts
CX437
Town Belt & Reserves
Expense
135
248

Town belts Total

135
248

2.1.7
Walkways
CX435
Walkways renewals
Expense
550
1,014

Walkways Total

550
1,014

Gardens, beaches and green open spaces Total

2,632
3,672

2.2
Waste reduction and energy conservation
2.2.1
Waste minimisation, disposal and recycling management
CX084
Southern Landfill Improvement
Expense
1,238
673

Waste minimisation, disposal and recycling management Total

1,238
673

2.2.3
Energy efficiency and conservation
CX494
Energy Management Plan
Expense
0
65

Energy efficiency and conservation Total

0
65

Waste reduction and energy conservation Total

1,238
738

2.3
Water
2.3.1
Water network
CX126
Water - Network renewals
Expense
12,489
9,902

CX127
Water - Pump Station renewals
Expense
323
668

CX296
Water - Water Meter upgrades
Expense
0
477

CX326
Water - Network upgrades
Expense
1,441
1,368

CX430
Water - Network renewals
Expense
536
485

CX512
Water - Reservoir renewals
Expense
1,975
1,662

CX513
Water - Reservoir upgrades
Expense
190
353

CX518
Water - Water Meter renewals
Expense
(2)
0

Water network Total

16,951
14,915

Water Total

16,951
14,915

2.4
Wastewater
2.4.1
Sewage collection and disposal network
CX334
Wastewater - Network renewals
Expense
9,617
9,905

CX381
Wastewater - Network upgrades
Expense
0
456

CX517
Wastewater - Pump Station renewals
Expense
863
874

Sewage collection and disposal network Total

10,481
11,236

Wastewater Total

10,481
11,236

2.5
Stormwater
2.5.1
Stormwater management
CX031
Stormwater - Network upgrades
Expense
944
4,081

CX151
Stormwater - Network renewals
Expense
3,511
2,939

Stormwater management Total

4,455
7,020

Stormwater Total

4,455
7,020

2.6
Conservation attractions
2.6.1
Conservation visitor attractions
CX125
Zoo renewals
Expense
800
817

CX340
Zoo upgrades
Expense
516
0

Conservation visitor attractions Total

1,316
817

Conservation attractions Total

1,316
817

Environment Total

37,072
38,398

3
Economic Development
3.1
City promotions and business support
3.1.2
Wellington convention centre
CX275
Wellington Venues renewals
Expense
2,215
1,759

CX535
Convention Centre
Expense
0
5,252

Wellington convention centre Total

2,215
7,011

City promotions and business support Total

2,215
7,011

Economic Development Total

2,215
7,011

4
Cultural Wellbeing
4.1
Arts and Cultural Activities
4.1.1
Galleries and museums (WMT)
CX500
Gallery & Museum Upgrades
Expense
1,914
0

Galleries and museums (WMT) Total

1,914
0

4.1.2
Major economic projects
CX536
Movie Museum
Expense
0
9,248

Major economic projects Total

0
9,248

Visitor attractions (Te Papa/Carter Observatory)
CX496
Cable Car Precinct
Expense
180
0

Visitor attractions (Te Papa/Carter Observatory) Total

180
0

4.1.4
Cultural grants
CX497
Te ara o nga tupuna - Maori heritage trails
Expense
100
0

Cultural grants Total

100
0

4.1.5
Access and support for community arts
CX458
Arts Installation
Expense
26
27

Access and support for community arts Total

26
27

Arts and Cultural Activities Total

2,220
9,275

Cultural Wellbeing Total

2,220
9,275

5
Social and Recreation
5.1
Recreation promotion and support
5.1.1
Swimming pools
CX056
Aquatic Facility renewals
Expense
1,790
1,853

CX055
Aquatic Facility upgrades
Expense
627
0

Swimming pools Total

2,417
1,853

5.1.2
Sportsfields
CX345
Sportsfields upgrades
Expense
650
905

Sportsfields Total

650
905

5.1.3
Sportsfields (Synthetic)
CX507
Synthetic Turf Sportsfields upgrades
Expense
560
1,789

Sportsfields (Synthetic) Total

560
1,789

5.1.4
Recreation centres
CX059
Recreation Centre Renewal
Expense
227
15

CX499
ASB Sports Centre
Expense
33
62

Recreation centres Total

260
77

5.1.5
Recreation partnerships
CX503
Basin Reserve
Expense
3,468
1,597

Recreation partnerships Total

3,468
1,597

5.1.6
Playgrounds
CX181
Playgrounds renewals & upgrades
Expense
414
455

Playgrounds Total

414
455

5.1.7
Marinas
CX341
Marina renewals
Expense
492
87

CX342
Marina
Expense
66
54

Marinas Total

558
141

Recreation promotion and support Total

8,325
6,817

5.2
Community support
5.2.1
Libraries
CX077
Upgrade Library Materials
Expense
2,022
2,073

CX269
Upgrade Computer Replacement
Expense
2,690
0

CX338
Central Library upgrades
Expense
16
347

CX358
Branch Library upgrades
Expense
844
6,882

CX359
Branch Libraries renewals
Expense
55
220

Libraries Total

5,627
9,521

5.2.5
Housing
CX370
Housing upgrades
Expense
25,295
19,646

CX371
Housing renewals
Expense
3,826
4,215

Housing Total

29,121
23,861

5.2.6
Community centres and halls
CX467
Community Halls - upgrades & renewals
Expense
154
262

Community centres and halls Total

154
262

Community support Total

34,902
33,644

5.3
Public health and safety
5.3.1
Burials and cremations
CX369
Burial & Cremations
Expense
635
316

Burials and cremations Total

635
316

5.3.2
Public toilets
CX366
Public Convenience and pavilions
Expense
984
1,622

Public toilets Total

984
1,622

5.3.5
WREMO
CX372
Emergency Management renewals
Expense
52
73

WREMO Total

52
73

Public health and safety Total

1,671
2,010

Social and Recreation Total

44,898
42,471

6
Urban Development
6.1
Urban planning, heritage and public spaces development
6.1.2
Waterfront development
CX131
Wgtn Waterfront Development
Expense
4,277
5,187

CX523
Waterfront Renewals
Expense
2,566
1,204

Waterfront development Total

6,843
6,390

6.1.3
Public spaces and centres development
CX406
Central City Framework
Expense
1,325
2,527

CX446
Suburban Centres upgrades
Expense
0
1,120

CX522
Minor CBD Enhancements
Expense
100
124

CX527
Urban Regeneration Projects
Expense
0
392

Public spaces and centres development Total

1,425
4,162

Urban planning, heritage and public spaces development Total

8,268
10,553

6.2
Building and development control
6.2.3
Earthquake risk mitigation - built environment
CX505
Earthquake Risk Mitigation
Expense
5,940
3,041

Earthquake risk mitigation - built environment Total

5,940
3,041

Building and development control Total

5,940
3,041

Urban Development Total

14,208
13,594

7
Transport
7.1
Transport
7.1.2
Vehicle network
CX086
Wall,Bridge&Tunnel renewals
Expense
2,510
2,457

CX088
Thin Aspalt Road Surface renewals
Expense
1,741
2,118

CX089
Reseals renewals
Expense
2,477
2,435

CX090
Preseal Preparation renewals
Expense
3,360
3,288

CX092
Shape & Camber Correction
Expense
4,276
4,267

CX093
Sumps Flood Mitigation Upgrade
Expense
9
221

CX098
Road corridor new walls
Expense
1,451
2,182

CX101
Service Lane Improvements
Expense
0
51

CX165
Tunnel and bridge improvements
Expense
1,788
895

CX253
Kerb & Channel renewals
Expense
2,208
2,133

CX350
Road Risk Mitigation
Expense
898
720

CX377
Roading Capacity Projects
Expense
1,580
0

CX383
Area Wide Road Maintenance
Expense
719
790

Vehicle network Total

23,017
21,558

7.1.3
Cycle network
CX112
Cycling Improvements
Expense
5,673
7,522

Cycle network Total

5,673
7,522

7.1.4
Passenger transport network
CX492
Bus Priority Planning
Expense
145
888

Passenger transport network Total

145
888

7.1.5
Pedestrian network
CX091
Pedestrian Network Structures
Expense
118
240

CX094
Pedestrian Network Footpath renewals
Expense
3,859
3,539

CX099
Walking Improvements
Expense
200
409

CX108
Street Furniture renewals
Expense
160
261

CX109
Pedestrian Network Accessways
Expense
244
222

Pedestrian network Total

4,583
4,671

7.1.6
Network-wide control and management
CX095
Traffic & St Signs renewals
Expense
1,570
1,456

CX353
Traffic Signal renewals
Expense
1,234
924

Network-wide control and management Total

2,804
2,380

7.1.7
Road safety
CX096
Safety Street Lighting renewals
Expense
766
706

CX097
Rural road improvements
Expense
100
103

CX171
Minor safety projects
Expense
887
1,014

CX352
Fences & Guardrails renewals
Expense
599
624

CX445
Safer Roads Project
Expense
0
1,092

Road safety Total

2,352
3,538

Transport Total

38,573
40,557

7.2
Parking
7.2.1
Parking
CX319
Roadside Parking Improvements
Expense
1,449
496

Parking Total

1,449
496

Parking Total

1,449
496

Transport Total

40,022
41,052

10
Council
10.1
Organisational Projects
10.1.1
Organisational
CX010
Enterprise Applications
Expense
7,762
779

CX245
Capital Replacement Fund
Expense
4,390
4,469

CX258
Disaster Recovery Assets
Expense
473
901

CX260
Technology Infrastructure Assets
Expense
130
100

CX299
PeopleSoft Version Upgrade
Expense
50
361

CX300
Unscheduled infrastructure renewals
Expense
0
2,361

CX305
Health & Safety - Legislation Compliance
Expense
310
317

CX426
Civic Property renewals
Expense
1,746
2,985

CX501
Commercial Properties renewals
Expense
538
11,796

CX502
Community & Childcare Facility renewals
Expense
263
272

CX524
Legislative changes
Expense
50
103

CX525
Support for Business Unit Initiatives
Expense
170
482

CX528
Office Resilience and Efficiency
Expense
950
3,429

CX529
Civic Campus Resilience and Improvements
Expense
975
513

Organisational Total

17,807
28,867

Organisational Projects Total

17,807
28,867

Council Total

17,807
28,867

Grand Total

158,443
180,784

Part D: Appendices

Elected Members

CELIA WADE-BROWN
(MAYOR) City-wide

mayor@wcc.govt.nz

RAY AHIPENE-MERCER
Eastern Ward

ray.ahipene-mercer@wcc.govt.nz

Andy Foster
Onslow-Western Ward

andy.foster@wcc.govt.nz

Sarah Free
Eastern Ward

sarah.free@wcc.govt.nz

Simon Marsh
Eastern Ward

simon.marsh@wcc.govt.nz

Iona Pannett
Lambton Ward

iona.pannett@wcc.govt.nz

Malcolm Sparrow
Northern Ward

malcolm.sparrow@wcc.govt.nz

Simon Woolf
Onslow-Western Ward

simon.woolf@wcc.govt.nz

Jo Coughlan
Onslow-Western Ward

jo.coughlan@wcc.govt.nz

Paul Eagle
Southern Ward

paul.eagle@wcc.govt.nz

David Lee
Southern Ward

david.lee@wcc.govt.nz

Justin Lester
Northern Ward

justin.lester@wcc.govt.nz

Mark Peck
Lambton Ward

mark.peck@wcc.govt.nz

Helene Ritchie
Northern Ward

helene.ritchie@wcc.govt.nz

Nicola Young
Lambton Ward

nicola.young@wcc.govt.nz

Glossary

Non-Financial

Local Government Act (LGA02)

The Local Government Act 2002 provides the general framework and powers under which New Zealand's 78 democratically elected and accountable local authorities operate

Long-term plan (LTP)

The LTP is a document required under the Local Government Act 2002 that sets out a local authority’s priorities in the medium to long term

Annual Plan (AP)

The annual plan is produced for each year in between long-term plans and provides an opportunity to refresh the information for the coming year and consult with the community on any changes that are proposed

Annual Report (AR)

The purpose of the annual report is to compare activities performed with those intended in the annual plan

Consultation Document

The consultation document is the basis of discussions between Council and its communities about the issues facing the district/area and how council is proposing to address those issues

Infrastructure Strategy

This document covers significant infrastructure issues across the 5 mandatory groups of activity and contains 30 years’ forecasted capital and operational expenditure figures. Included in this document will be assets’ useful lives, growth/demand assumptions and assumed levels of service

Service plans

Council produces detailed service plans for all asset classes under its stewardship. These provide a picture of the level of service derived from each asset and asset specific risk are discussed in the service plans. Service plans show the actual operation of the Council’s assets and delivery of its services

Asset management plans (AMPs)

AMPs reflect a council’s infrastructure and asset base in terms of future maintenance, renewal and replacement needs

Levels of Service (LoS)

Service Delivery Indicators. How efficient and effective do council deliver its services to the community

Community Outcomes

Means the outcomes that a local authority aims to achieve in meeting the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions

Growth Assumptions

These are growth forecasts based on a variety of trends which enable Council to predict future growth in the city. In order for Council to plan its infrastructure and asset needs in advance, Council needs to estimate the levels of infrastructure future generations will need

Financial

Capital expenditure (Capex)

Expenditure that results in the creation of a new asset, or increases the life or capacity provided by an existing asset

Operating expenditure

Expenditure related to providing Council Services. This excludes capital expenditure.

Depreciation

An expense charged each year to reflect the estimated cost of using our assets over their lives. Amortisation relates to ‘intangible’ assets such as software (as distinct from physical assets, which are covered by the term depreciation)

Fair value

Essentially reflects the market value of assets or liabilities

Investment properties

Investment properties are properties that are primarily held by the Council to earn rental income

Prudential limits

Prudential limits are limits applied to the level of borrowings to ensure we are managing the Council’s assets and liabilities prudently. These limits are outlined in the Investment and Liability Policy and Financial Strategy in the Long Term Plan

Renewal

Renewal is capital expenditure that relates to the replacement of existing assets

Ring-fenced

Ring-fenced are funds that can only be used for a specific purpose

Upgrade Capital Expenditure

Capital expenditure that improves the level of service or meets additional demand for a service

Funding impact statements (FIS)

FIS sets out the sources of both the operating and capital funding for everything that council does

Forecast financial statements (FFS)

FFS is a tool that allows councils to use its resources where they are most needed. It summarises the expected performance of a council for the near future