Part A: Introduction

Mayor’s introduction

We all love Wellington, and we know we can make it even better. This year’s annual plan is all about getting on with the job.

This is the first budget for our newly elected Council. Last year, we were given an incredible honour: the chance to make a difference for our city. We’ve tried not to waste a single minute. This plan is a roadmap to a more confident, vibrant Wellington. A city with a growing economy, plenty of well-paid jobs, and arts and culture at its heart. A city where housing is affordable and we support people in need. A city where it’s easy to get around, and transport is efficient and affordable for everyone. And finally, a city that has recovered from the recent earthquakes and is safer for the future.

It starts with our economy. Currently the city is humming and we’re growing strongly with 2.8 percent growth in the last 12 months – but there’s more we can do. In this plan you’ll find a range of measures to further boost growth. We’re building a film museum and convention centre that will attract millions of dollars in tourism, and we’re backing local business by speeding up consenting.

We’re also taking action on the biggest issue our city faces: housing.

Affordable high-quality housing should be available to everyone in Wellington. That’s why we’re rolling out a comprehensive approach on housing. We’re building 750 new social and affordable houses over the next decade, refurbishing inner city buildings for new apartments, offering a $5000 rates rebate to first-home builders, simplifying consents to make it easier to build, and investing in the country’s first wet house to look after those most in need.

We’re also investing in the arts and culture that make Wellington such a colourful and exciting place to live. We’re working to reopen Wellington’s iconic Town Hall, and through our Capital of Culture programme half a million dollars will be invested in new festivals, public art and supporting emerging artists. It’ll ensure Wellington remains the coolest little capital in the world.

And we’re doing all this in a way that is affordable for ratepayers and focussed on getting the best value for every dollar we spend.

Despite a major earthquake and the unexpected costs that came with it, we’ve kept average rates increases down from a forecast 5.1 percent to just 3.3 percent. We’ve done that by re-phasing $11 million in lower priority spending. It means our debt levels are over $40 million less than forecast.

At the same time, we’re making sure ratepayers get better value at Council facilities through programmes like dropping spectators’ fees at Council pools.

The result is that our books are in good order, ratepayers’ money is being spent well, and we have the strongest financial positon of any government entity in the country.

Right now, Wellington is on the right track. This plan is about taking that to the next level. I want to thank everyone who submitted ideas, the staff who worked such long hours to put it together, and our team of Councillors for their vision and commitment to Wellington. Together, we’re making the city we love even better.

JUSTIN LESTER
Mayor

Message from the Chief Executive

Wellington is now in a period of forecast growth.

The annual plan is the Council’s budget. It outlines all the services and projects the Council will deliver over the coming year, what they will cost and how they will be paid for.

The residents and ratepayers of Wellington benefit every day from the Council’s services.

I’m often asked “what exactly does the Council do?”. Some people probably wonder what the Council does for them. The answer is compelling and comprehensive. We deliver an enormous range of important services, for example:

clean water and sanitation for businesses and households

libraries, swimming pools, sportsfields and playgrounds

roads, footpaths and cycleways

caring for vulnerable people

rubbish and recycling services

social and affordable housing

processing resource and building consents

recreational and community facilities

parks, gardens, public spaces and bush trails

arts and cultural events so that Wellingtonians have lots to do every day of the year.

The Council will continue to deliver all these services in the next 12 months at an average cost of $6.08 per resident per day. By any measure, that is excellent value for money.

The Council also helps to create and maintain a city that people want to come to from overseas and around New Zealand. That’s why the goal of the Long-term Plan 2015–25 was to put Wellington on a path to strong, sustainable growth – and that is what has happened.

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 the essential services we deliver, as well as more investment in infrastructure and economic development.

The Kaikoura earthquake in November resulted in a heightened focus on resilience. For this reason the Council has pushed out some major capital projects, which has helped to keep downward pressure on rates.

The good news is that the Council has managed to keep a lid on rates – the average rates increase this year is 3.3 percent – down from the 5.1 percent forecast 3 years ago.

Wellington is in good shape as the city continues to grow.

KEVIN LAVERY
Chief Executive

Background

More people today than at any other time in history have a choice about where they live. That’s why the Council’s Long-term Plan 2015–25 recognised the need to continue investing in our city and its people.

Planning for Wellington’s future – how it works

The Local Government Act 2002 requires us to plan in 3-year cycles. We do this with our Long-term Plan (LTP), which is prepared following consultation with the community. It 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 next LTP will be published in 2018.

Our annual plans allow us to take a fresh look each year at our work programme, and consider whether any changes are needed. These could be due to budgets revisions, new priorities set by elected members, or new projects to help deal with issues facing the city.

The focus of the Long-term Plan 2015–25

The two main priorities of our current LTP are delivering our core services well, and placing Wellington on a path of strong, sustainable economic growth. To do this, we planned to:

invest in projects to stimulate economic growth, and grow the ratepayer base

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

increase the use of existing assets/facilities, rather than investing in new ones

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

achieve ongoing efficiencies from shared services and improved customer service design.

Funding this investment programme is at the heart of the LTP financial strategy, which:

limits rates increases to 3.9 percent annually (on average over the next 10 years)

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

Details on the Long-term Plan 2015–25 are available at www.our10yearplan.co.nz

The Mayor and Councillors’ 3-year work programme (Triennium Plan)

Following the election in October 2016, the Mayor and Councillors consulted with stakeholders and the community to determine what the Council’s priorities for the next 3 years should be. The resulting plan sets out goals and ‘areas of focus’ for the Council’s work programme for 2016–19.

The 3-year work programme retains the approach outlined in the Long-term Plan 2015–25 (LTP) (doing the basics well and investing in the city to secure growth), while also including new goals and programmes to respond to new challenges facing Wellington, such as housing affordability, transport, sustainability, and resilience.

The table below provides an overview of the plan’s goals, focus areas, and key initiatives that are included in the Annual Plan 2017/18.

The full Triennium Plan can be found on page 128.

Vision: Wellington Towards 2040: Smart City

Long-term goals

Connected City – People, places, and ideas access networks to forge physical, virtual and social connections

People-Centred City – A healthy, vibrant, affordable and resilient city with a strong sense of identity and place

Eco-City – The capital of clean and green New Zealand

Dynamic Central City – A place of creativity, exploration and innovation that offers the lifestyle of a much larger city

3-year work programme goals
Icon of cityscape
Goal 1: More resilient
Icon of hub
Goal 2: Smarter growth
Icon of people
Goal 3: People-focussed
Icon of plant
Goal 4: More sustainable
Icon of upwards arrow
Goal 5: Improving the way we work

Focus areas 
2016–19

Safer homes, and more robust infrastructure (Urban development)

An economy ready to survive, adapt and thrive (Economic development)

Connected and prepared communities (Cultural wellbeing)

Economic and job growth (Economic development)

Housing our people (Urban development)

Designing the city for growth (Economic development)

Capital of Culture (Cultural wellbeing)

Community planning (Governance)

Clean, green, safe and inclusive city (Environment)

Our Natural Capital (Environment)

Waste management and minimisation (Environment)

Reducing emissions (Environment)

Living Wage (Governance)

Improved engagement (Governance)

Improved performance monitoring (Governance)

New for 2017/18

More resilient homes – resilience assessments (Urban development)

Smart building sensors (Urban development)

Town Hall earthquake strengthening (Urban development)

Discount fees for smokefree alfresco dining (Social and recreation)

Rates Remission for first-home builders (Urban development)

Tawa Business Improvement District (Economic development)

Significant sporting events (Economic development)

LED street lighting (Transport)

Arts and Culture funding – Capital of Culture (Cultural wellbeing)

St James Theatre, Royal Ballet (Cultural wellbeing)

Remove swimming pool spectator fees

Te Whare Oki Oki - assisted accommodation for the homeless (Social and recreation)

Projects to reduce anti-social behaviour (Social and recreation)

Play areas (Social and recreation)

Predator Free Wellington (Environment)

Electric vehicle and car share car parks (Environment)

Improved Lyall Bay Resilience (Environment)

Develop one-stop shop consenting (Urban development)

Expand community engagement resources (Governance)

Continue implementing the Living Wage (Governance)

Note: Items in italics indicate the relevant Council work area

Community feedback on the Annual Plan 2017/18

Community engagement

Prior to the development and publication of this annual plan, we gave Wellingtonians the opportunity to provide feedback on the 15 proposed initiatives, fee changes and proposed Council budget for 2017/18. We also engaged with the community on the 3-year work programme.

Engagement activities were carried out during April/May 2017. They included a website for submissions, radio and press advertising, social media campaigns, and an online virtual Q&A with Councillors and two stakeholder workshops (“Annual Plan Forums”).

Community feedback

For the Annual Plan we received 120 written submissions from individuals or organisations. Sixty-three comments were submitted through our social media channels, and 833 people responded to the research panel survey.

There was strong support for our proposals, with the majority of submitters and social media comments supporting the Annual Plan 2017/8 initiatives and 3-year work programme.

We also surveyed our research panel to determine community views on our annual plan proposals. We received 167 respondent comments on specific new initiatives, and 138 general comments. Overall, the majority of specific comments (61%) were in favour of the initiatives.

In addition, 217 comments were received from the research panel respondents on the proposed budget for 2017/18. Comments related to rates rises, reduction of Council operating costs, delayed capital expenditure and managing Council debt.

Two stakeholder forums were held, and were attended by 94 stakeholders – including mana whenua, community groups, residents’ associations, businesses and other organisations. Each forum conducted group prioritisation activities on the proposed initiatives. After discussion with these groups, the following initiatives were rated high or near-high priority for implementation were:

community engagement

one-stop shop Council consenting

resilience assessments

arts and culture programme

seismic building intelligence system

supported accommodation for the homeless (Te Whare Oki Oki).

New funding requests

While the majority of submissions focussed on the variances Council proposed in the engagement document, a small number of submitters also raised funding requests of their own. These submissions were assessed for inclusion in existing renewal and maintenance programmes where practicable.

Feedback on 3-year work programme (Triennium Plan)

In addition to the annual plan there were 149 comments made by submitters on the 3-year work programme. There was broad support for its goals and focus areas and the majority of the survey panel respondents (85%) were also supportive, with only 3 percent being opposed.

How this feedback helped shape the Annual Plan 2017/18

As a consequence of community feedback and the ongoing development of business cases for key initiatives, a number of project/budget changes were considered by the Mayor and Councillors and included in the final Annual Plan 2017/18:

Living Wage

the Island Bay Cycleway

Te Whare Oki Oki – supported living for the homeless

LED street lighting

St James earthquake strengthening and temporary relocation of the Royal New Zealand Ballet

support for second-tier sports events.

Details on these projects can be found in Part B: Our work in detail.

The proposed new initiatives for 2017/18 also included a number of ‘on the horizon’ projects. These projects were under development at the time of engagement and relate to making Wellington’s homes more resilient, additional blue tsunami lines, placing sensors in buildings to measure the effect of earthquakes, and effectively managing anti-social behaviour in the city.

The Council is continuing work on these projects, and detailed work programmes are to be considered by Councillors later in 2017/18. Any funding implications are to be considered as part of the Long-term Plan 2018–28.

Annual Plan Budget – key changes

Overview

This section outlines the main changes to the Long-term Plan 2015–25 (LTP) included in the Annual Plan 2017/18. Changes made as a result of community engagement are outlined in Part B, with further details included in Part C.

Overall, lower costs, re-phased capital projects and improved efficiency have allowed savings of over $11 million for 2017/18 without affecting service levels. The re-phasing of the projects has meant that there is less capital required in 2017/18. This means that, compared to what was forecast in the LTP, the Council will have:

reduced interest and depreciation expenses

lower overall debt – $40 million less.

Savings and efficiencies

We have carefully reviewed our spending to ensure it is focussed where it can do the most good, lowered costs where practicable and improved efficiency.

For example, the earthquake has undermined the usability of some of the Council’s buildings, which means we have had to assess how we use available space.
The result is a better utilisation of the available space and lowered costs. We have also achieved some efficiencies through improved procurement processes, better use of energy and increases in Council revenue.

Rephasing of the capital works programme

The capital works programme outlined in the LTP included a substantial investment in a variety of projects. In 2017/18, a portion of this programme will be rephased to later years or carried out over a longer period of time.

The drivers for this include the local body elections and November 2016 earthquake, which shifted the Council’s focus to the challenges facing Wellington (housing affordability, transport, sustainability, resilience).

Many of the larger projects in the LTP involved collaborative partnerships and co-investment from external stakeholders. The timing of these projects needs to be flexible to accommodate this change in focus and re-phasing of a number of other LTP projects.

Rephased projects

Project
Spending re-phased out of 2017/18
($000)

Details

Movie Museum
-31,591

Final designs are being progressed with partners and the project will not require capital funding for 2017/18.

Convention Centre
-23,195

Civic Campus property
-20,431

Improvements to the civic campus are being delayed. Once the remediation feasibility process is completed on the Civic Administration Building a decision will be made on its future use.

Town Hall EQS
-14,346

Council is negotiating with Victoria University on the establishment of a Music Hub in the Town Hall. Preliminary work on the Earthquake strengthening has begun with the majority of physical works scheduled for 2018/19.

Museum of Conflict
-10,000

The timing of this project has been deferred out of the current LTP.

Johnsonville Library upgrade
-5,900

The scope has changed to optimise community benefits and this has increased costs and has impacted on delivery timeframes. This will be reflected in the 2018 Long-term Plan.

Northern Growth roading projects
-5,200

Northern roading projects are contingent on developments and NZTA works. The timing of these has changed and no Council funding is required for 2017/18

Cycling improvements
-3,187

This programme of work includes further community engagement which has required the programme to be rephased over a longer period.

Kumutoto Public Space and Frank Kitts Park
-3,000

Frank Kitts park redevelopment requires further planning and is consequently being reprogrammed to 2018/19

Social Housing renewals
-2,700

The on-going redevelopment of the Arlington site has delayed the need for renewals. These were planned for 2017/18 in the LTP.

CBD speed limit
-1,300

This programme of work has been delayed to 2018/19 to facilitate the LED street light upgrade programme.

Project
New spending into 2017/18
($000)
Details

LED street lighting
15,253
This is an accelerated programme to replace all the remaining sodium bulbs with LED infrastructure. This has been accelerated to allow access to one year funding available from NZTA for 2017/18.

Prince of Wales reservoir
2,000
This project for a 35 million litre reservoir has been brought forward as a resilience priority.

Rephased transport programme
1,867
The renewals programme has been re-programmed and some money has been brought forward to deal with resilience issues.

Taranaki Street sewer upgrade
1,784
This project has been brought forward as a resilience priority.

South Coast Resilience
976
Stage 2 of programme of work to restore and strengthen the South Coast after damage caused by a succession of high-intensity storm surges in recent years.

Notes to table:

The budgeted capital programme for 2017/18 is $182 million. In addition, there is $64 million of ‘carry forward’ capital projects to deliver that were funded in the Annual Plan 2016/17, and $23 million of ‘carry forward’ capital projects that were funded in 2015/16 but delayed until 2017/18. The budgeted and additional works result in an capital programme of $269 million. The resulting debt forecast of $570.2 million, however, includes a ‘carry forward’ from the 2017/18 year of $65 million. The resulting capital programme to deliver in 2017/18 is forecast to have a budget of $204 million.

Part B: Our work in detail

Our work in detail

All our work falls under seven ‘strategic areas’ of activity (see below). For details of our ‘business-as-usual’ services, see the Long-term Plan 2015–25 (LTP) (www.our10yearplan.co.nz).

This annual plan focusses on new initiatives for 2017/18 that weren’t included in the LTP, key projects already under way and projects that continue as a priority during 2017/18.

Strategic area
Key objectives
Total Spend for 2017/18
New initiatives for 2017/18

Capital spend
Operating spend

Governance Icon
1. Governance

Democratic decision making

Open access to information

Recognition of Māori

Nil

$ million

19

$ million

Implementing Living Wage

Community engagement

Environment Icon
2. Environment

Security of supply (water)

Waste reduction

Access to green open spaces

Enhanced biodiversity

Emission reduction

45.5

$ million

164.3

$ million

Predator Free Wellington

Promote electric vehicle and car share uptake

South coast resilience

Economic development Icon
3. Economic development

Increased tourism spend

Improved investment attraction/digital exports

Enhanced city vibrancy

5.0

$ million

43.5

$ million

Tawa Business Improvement District (BID)

Second-tier sports events

Cultural wellbeing Icon
4. Cultural wellbeing

Sense of place and identity

Diversity and openness

Increased visitation (cultural tourism)

Exposure to creativity and innovation

1.3

$ million

21.6

$ million

Additional funding for arts/culture initiatives and events

Royal New Zealand Ballet (temporary accommodation)

Social and recreation Icon
5. Social and recreation

Social cohesion

Participation in community life for all

Greater use of existing facilities

Creating a safe (and child-friendly) city

24.7

$ million

114.6

$ million

Projects to reduce anti-social behaviour

Discount fees for businesses with smokefree outdoor (alfresco) dining

Te Whare Oki Oki – assisted living for the homeless

Remove fee for spectators supervising under 8 years at swimming pools

Improve quality of play spaces

Urban development Icon
6. Urban development

Smarter growth/urban containment

Resilience

Heritage and character protection

20.8

$ million

29.3

$ million

Rates remission for first-home/apartment builds

One-stop-shop consenting

Seismic building intelligence

Resilience assessment of homes

Town Hall earthquake strengthening

Transport Icon
7. Transport

Increased active mode share

Safe roads

Reliable transport routes

Reduced emissions

60.2

$ million

66.5

$ million

LED street lighting

1 Governance

Pārongo ā-tāone

This strategic area includes activities that enable democratic decision making. We encourage public input and involvement to ensure all points of view and relevant information are considered when we are making decisions on behalf of Wellingtonians.

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

Governance services 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. Our City Archives team looks after and makes available information about the city’s history. We also operate a contact centre that provides people with information about our services and respond to requests 24/7.

Governance

Governance Icon
Capital spend
2017/18
Operating spend
2017/18
How operating
costs are funded
Rates value
per $100

Nil

$ million

19

$ million

Key objectives, activities and focus for 2016–19

New for 2017/18 and key projects

2017/18 cost

New for 2017/18

Improved community engagement: The Council wants to improve the conversations it has with communities to allow for more meaningful engagement. In 2017/18 we will be increasing resources by $75k to fund improved community engagement for key projects.

Additional $75k

Implementing the Living Wage: The Living Wage provides workers and their families with the basic necessities of life. It also has positive benefits for employers by encouraging productivity and improving customer service. In 2013/14, the Council introduced a Living Wage rate of $18.40 per hour for its frontline staff. This was subsequently raised to $18.63 per hour in the following years and in 2017/18 we will be moving to the new Living Wage rate of $20.20 per hour for Council staff, including those working in Council Controlled Organisations. The rate will also be extended to some contractors for regular core services, with the main focus being cleaning and sanitation services. Our goal is to become an accredited Living Wage employer within the next 3 years.

Additional $1.89m

Other key projects being advanced in 2017/18 include:

Working with our Treaty Partners: We are committed to engaging and working with our partners to ensure the role of Māori in the past, present and future of our city is valued and reflected in all aspects of our work, including urban design, economic development, resource management, social wellbeing, arts, culture and recreation.

Earlier this year we signed a Memorandum of Understanding (MOU) with local mana whenua iwi entities Port Nicholson Block Settlement Trust (Taranaki Whānui) and Te Rūnanga o Toa Rangatira Incorporated. As a result of this, a leadership forum has been established and in the coming year we will work towards developing a work plan with Taranaki Whānui and Te Rūnanga that addresses mutual strategic, commercial and participatory outcomes consistent with the MOU.

Within existing budgets

How we measure our performance

Objectives
What we measure
Activities

Democratic decision making

Open access to information

The quality of the public's involvement in Council decision making (two measures with targets)

The quality and timeliness of residents' access to information (six measures with targets)

1.1.1 City governance and engagement
1.1.2 Civic information
1.1.3 City Archives

Recognition of Māori

The health of our relationships with mana whenua (one measure with target)

Engagement of the city's Māori residents (one measure with target)

1.2.1 Māori and mana whenua partnerships

For details of individual performance measures and targets for each activity, see the appendices.

Activity budgets (cost of service statements)

1.1 GOVERNANCE, INFORMATION AND ENGAGEMENT
2016/17
AP
GROSS EXPENDITURE
2017/18
AP
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

1.1.1 - City governance and engagement
10,909
11,325

1.1.2 - Civic information
5,542
5,349

1.1.3 - City archives
1,967
1,985

Total operating expenditure
18,417
18,659

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
2016/17
AP
GROSS EXPENDITURE
2017/18
AP
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

1.2.1 - Māori and mana whenua partnerships
295
300

Total operating expenditure
295
300

Capital expenditure
($000)
($000)

1.2.1 - Māori and mana whenua partnerships
-
-

Total capital expenditure
-
-

2 Environment

Taiao

This strategic area includes services such as water supply, waste reduction and disposal, wastewater and stormwater. Environment services are the Council’s biggest area of activity and funding. In addition, we fund conservation attractions such as Zealandia and Wellington Zoo, and manage open spaces such as the Town Belt, 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 the community as a whole

ensure the city is safe and liveable, and that basic human needs are met

minimise harmful effects from human activity

provide recreation opportunities, attract visitors, and make the city a beautiful place to live.

Environment

Environment Icon
Capital spend
2017/18
Operating spend
2017/18
How operating
costs are funded
Rates value
per $100

45.5

$ million

164.3

$ million

Key objectives, activities and focus for 2016–19

New for 2017/18 and key projects

2017/18 cost

New for 2017/18:

Electric vehicle (EV) and car share car parks: To promote and encourage the use of electric and shared vehicles, the Council has agreed to assign or develop 100 car parks for use by EVs or shared vehicles – 30 in the CBD and 70 in the suburbs. In 2017/18 we have allocated 37 car parks across the city for EV charging and car share schemes.

$100k capital funding and a maximum of $150k of lost revenue from parking fees

Predator Free Wellington: The Predator Free Wellington project is designed to eradicate possums, rats and mustelids from Wellington City to a point where our native species can survive and populations can expand. As part of this project, we have appointed a Director to oversee the eradication of rats and stoats from the Miramar Peninsula. This will be followed by the development of a strategy that will extend the project across Wellington.

Additional $125k

Improved Lyall Bay resilience: In 2016/17, Stage 1 work was undertaken to restore and strengthen the south coast after damage caused in recent years by a succession of high-intensity storm surges. In 2017/18 we will be ready to commence Stage 2 work, which includes sand dune planting and protection, and extensions to stormwater outfalls. Car parking at Surfers’ Corner is also being redesigned.

Capital of $976k for Stage 2

Other key projects being advanced in 2017/18 include:

Prince of Wales/Omāroro Reservoir: In 2017/18 Wellington Water will continue community engagement and planning for a new 35,000m³ concrete reservoir in Prince of Wales Park on the Town Belt. The reservoir will improve the resilience of the city’s water supply and provide more emergency water storage for 70,000 residents in the CBD, Thorndon, Mt Cook, Hataitai, Kilbirnie, Miramar, Strathmore, Seatoun and Newtown area, including Wellington Hospital. Construction of the reservoir will commence subject to obtaining all approvals and consents required.

Initial capital funding of $2m in 2017/18 and remaining funding to be finalised as part of 2018 Long-term Plan

How we measure our performance

Objectives
What we measure
Activities

Security of supply

Waste reduction

Access to green open spaces

Biodiversity

Emission reduction

The quality of the open spaces we provide (two measures with targets)
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

The quality of street cleaning services (two measures with targets)

The quality and quantity of work we undertake to protect biodiversity (three measures with targets)

The quality of waste reduction and recycling services (three measures with targets)
2.2.1 Waste minimisation, disposal and recycling management
2.2.2 Closed landfills aftercare
2.2.3 Energy efficiency and conservation

The quality of our waste disposal services (three measures with targets)
2.3.1 Water network
2.3.2 Water collection and treatment

The quantity of the Council’s energy consumption and emissions (two measures with targets)

The quality of water supplied to residents and the services that ensure security of supply (eight measures with targets)

The quality and timeliness of the wastewater service (five measures with targets)
2.4.1 Sewage collection and disposal network
2.4.2 Sewage treatment

The impact of wastewater on the environment (one measure with target)

The quality and timeliness of the stormwater service (four measures with targets)
2.5.1 Stormwater management

The impact of stormwater on the environment (five measures with targets)
2.6.1 Conservation visitor attractions

The success of our investments in conservation attractions (two measures with targets)

For details of individual performance measures and targets for each activity see the appendices.

Activity budgets (cost of service statements)

2.1 GARDENS, BEACHES AND GREEN OPEN SPACES
2016/17
AP
GROSS EXPENDITURE
2017/18
AP
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

2.1.1 - Local parks and open spaces
8,791
9,650

2.1.2 - Botanical gardens
4,724
5,118

2.1.3 - Beaches and coast operations
1,283
1,128

2.1.4 - Roads open spaces
8,712
8,949

2.1.5 - Town belts
4,722
4,878

2.1.6 - Community environmental initiatives
757
665

2.1.7 - Walkways
604
662

2.1.8 - Biodiversity (Pest management)
1,824
2,131

2.1.9 - Waterfront Public Space
4,856
5,481

Total capital expenditure
36,273
38,664

Capital expenditure
($000)
($000)

2.1.1 - Local parks and open spaces
705
1,033

2.1.2 - Botanical gardens
530
677

2.1.3 - Beaches and coast operations
1,176
1,155

2.1.4 - Roads open spaces
-
-

2.1.5 - Town belts
248
228

2.1.6 - Community environmental initiatives
-
-

2.1.7 - Walkways
1,014
1,044

2.1.8 - Biodiversity (Pest management)
-
-

2.1.9 - Waterfront Public Space
-
-

Total capital expenditure
3,672
4,137

2.2 WASTE REDUCTION AND ENERGY CONSERVATION
2016/17
AP
GROSS EXPENDITURE
2017/18
AP
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

2.2.1 - Waste minimisation, disposal and recycling management
13,268
14,042

2.2.2 - Closed landfills aftercare
414
319

2.2.3 - Energy efficiency and conservation
416
253

Total operating expenditure
14,098
14,614

Capital expenditure
($000)
($000)

2.2.1 - Waste minimisation, disposal and recycling management
673
2,071

2.2.2 - Closed landfills aftercare
-
-

2.2.3 - Energy efficiency and conservation
65
-

Total capital expenditure
738
2,071

2.3 WATER
2016/17
AP
GROSS EXPENDITURE
2017/18
AP
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

2.3.1 - Water network
24,358
25,352

2.3.2 - Water collection and treatment
15,934
16,396

Total operating expenditure
40,291
41,748

Capital expenditure
($000)
($000)

2.3.1 - Water network
14,915
15,530

2.3.2 - Water collection and treatment
-
-

Total capital expenditure
14,915
15,530

2.4 Wastewater
2016/17
AP
GROSS EXPENDITURE
2017/18
AP
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

2.4.1 - Sewage collection and disposal network
20,058
21,269

2.4.2 - Sewage treatment
23,540
22,917

Total operating expenditure
43,598
44,186

Capital expenditure
($000)
($000)

2.4.1 - Sewage collection and disposal network
11,236
15,492

2.4.2 - Sewage treatment
-
-

Total capital expenditure
11,236
15,492

2.5 Stormwater
2016/17
AP
GROSS EXPENDITURE
2017/18
AP
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

2.5.1 - Stormwater management
18,147
18,127

Total operating expenditure
18,147
18,127

Capital expenditure
($000)
($000)

2.5.1 - Stormwater management
7,020
7,420

Total capital expenditure
7,020
7,420

2.6 Conservation attractions
2016/17
AP
GROSS EXPENDITURE
2017/18
AP
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

2.6.1 - Conservation visitor attractions
6,989
6,970

Total operating expenditure
6,989
6,970

Capital expenditure
($000)
($000)

2.6.1 - Conservation visitor attractions
817
841

Total capital expenditure
817
841

3 Economic development

Whanaketanga ōhanga

This strategic area includes services that support business activity; marketing Wellington to tourists from New Zealand and overseas; operating performance venues and conference facilities; promoting business, education and cultural links through sister city relationships; and providing free weekend parking in the central business district.

We fund these activities because they:

make Wellington a more vibrant place to live

improve residents’ quality of life, prosperity, identity and the opportunities available to them.

Economic development

Economic development icon
Capital spend
2017/18
Operating spend
2017/18
How operating
costs are funded
Rates value
per $100

5.0

$ million

43.5

$ million

Key objectives, activities and focus for 2016–19

New for 2017/18 and key projects

2017/18 cost

New for 2017/18

Tawa Business Improvement District (BID): To support local economic development and bring the community together, the Council is working with businesses within Miramar, Khandallah, Kilbirnie and Tawa to create vibrant suburban centres. This is being achieved through a targeted rate where local businesses can pool funds for projects and improvements that complement existing Council services. In 2017/18 we are establishing a targeted rate for Tawa.

$95k (This is a targeted rate for businesses within the Tawa BID area)

Significant sporting events: The Council is a strong supporter of second-tier sport events. They bring significant numbers of participants and supporters to the city, benefit the economy and enhance Wellington’s reputation as a place for events and recreation. Other cities in New Zealand are increasingly doing more to secure these types of events. To stay competitive, from 2017/18 we will be providing greater support to these events through the City Growth Fund.

To be met from within existing City Growth Fund

Other key projects being advanced in 2017/18

We will continue to explore the potential for a 10,000–12,000 seat indoor arena for Wellington. Currently, the city’s premier venue for indoor concerts and events is the TSB Bank Arena, but because of its size and capacity constraints Wellington misses out on hosting top-level touring acts.

We will continue working with stakeholders to finalise the detailed design for the Movie Museum and Convention Centre project. The aim of this project and the indoor arena is to grow the city’s economy, showcase Wellington and improve its liveability and vibrancy.

Funding for the Movie Museum and Convention Centre is in the existing Long-term Plan (LTP) budget and feasibility work for an indoor arena will be met out of existing budgets

How we measure our performance

Objectives
What we measure
Activities

Increased tourism spend

Improved investment attraction/digital exports

Enhanced city vibrancy

The quality of our investments in promoting the city (one measure with target)
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

Attendance at Council supported events (one measure with target)

The quality of our investments in economic development (two measures with targets)

For details of individual performance measures and targets for each activity see the appendices.

Activity budgets (cost of service statements)

3.1 CITY PROMOTIONS AND BUSINESS SUPPORT
2016/17
AP
GROSS EXPENDITURE
2017/18
AP
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

3.1.1 - WREDA (Wellington Regional Economic Development Agency)
30,822
31,217

3.1.2 - Wellington convention centre
1,051
943

3.1.3 - Retail support (free weekend parking)
1,357
1,476

3.1.4 - City Growth Fund, economic growth and economic grants
3,001
3,433

3.1.5 - Major economic projects
5,000
5,373

3.1.6 - Regional and external relations
661
778

3.1.7 - Business improvement districts
194
291

Total operating expenditure
42,086
43,512

Capital expenditure
($000)
($000)

3.1.1 - WREDA (Wellington Regional Economic Development Agency)
-
-

3.1.2 - Wellington convention centre
7,011
5,016

3.1.3 - Retail support (free weekend parking)
-
-

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

3.1.5 - Major economic projects
-
-

3.1.6 - Regional and external relations
-
-

3.1.7 - Business improvement districts
-
-

Total capital expenditure
7,011
5,016

4 Cultural wellbeing

Oranga ahurea

This strategic area funds city events and festivals; attractions such as Te Papa; the city’s galleries and museums; and 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

support the city’s reputation as New Zealand’s arts and culture capital

improve residents’ quality of life.

Cultural wellbeing

Capital spend
2017/18
Operating spend
2017/18
How operating
costs are funded
Rates value
per $100

1.3

$ million

21.6

$ million

Key objectives, activities and focus for 2016–19

New for 2017/18 and key projects

2017/18 cost

New in 2017/18

Capital of Culture: To retain our status as the Capital of Culture and encourage the development of creative jobs and unique experiences for locals and visitors, we are expanding the arts and culture programme to create two new key events. These will assist to bridge the gaps between events during the winter months. The first event, an annual public celebration of Matariki, will be launched in partnership with local iwi, mana whenua partners and leading indigenous arts groups. The second initiative will be creating a diverse outdoor events series designed to inject colour and vibrancy into both the city and suburban areas. The events will create an opportunity to work more collaboratively on the delivery of visual arts information and the promotion of the city’s galleries, museums and public artworks.

$500k opex per year ($250k comes from existing City Growth Fund & $250k of other funding is being investigated)

The St James Theatre and Royal New Zealand Ballet (RNZB): Several of the Council’s buildings require earthquake strengthening for resilience and public safety, including the St James Theatre. This building’s strengthening work is partly budgeted for in the coming year, with the balance to be included in the Long-term Plan (LTP) 2018–28. The tenants – the RNZB and NZ Festival – need a temporary home while this work is carried out. There are no suitable studio spaces available in Wellington, so we are investigating using the dance and drama studioa at Te Whaea on Hutchinson Road. This site will require some extension and refurbishment work to be brought up to standard. Along with the planned capital works, the Council will work with the main tenant at Hutchison Road (Te Whaea Services, NZ National Dance and Drama Centre) to cement a partnership that ensures the long-term community benefits from increased investment are maximised.

$3.47m capex and $427k opex

How we measure our performance

Objectives
What we measure
Activities

Sense of place and identity

Diversity and openness

Increased visitation (cultural tourism)

Exposure to creativity and innovation

The quality and usage of our arts and culture support activities (seven measures with targets)
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

For details of individual performance measures and targets for each activity see the appendices.

Activity budgets (cost of service statements)

4.1 ARTS AND CULTURE ACTIVITIES
2016/17
AP
GROSS EXPENDITURE
2017/18
AP
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

4.1.1 - Galleries and museums (Wellington Museum Trust)
9,585
9,662

4.1.2 - Visitor attractions (Te Papa/Carter Observatory)
2,917
2,931

4.1.3 - Arts and cultural festivals
3,233
3,599

4.1.4 - Cultural grants
1,161
1,132

4.1.5 - Access and support for community arts
767
790

4.1.6 - Arts partnerships
2,481
2,805

4.1.7 - Regional Amenities Fund
609
641

Total operating expenditure
20,753
21,560

Capital expenditure
($000)
($000)

4.1.1 - Galleries and museums (Wellington Museum Trust)
-
0

4.1.2 - Visitor attractions (Te Papa/Carter Observatory)
9,248
1,223

4.1.3 - Arts and cultural festivals
-
-

4.1.4 - Cultural grants
-
8

4.1.5 - Access and support for community arts
27
28

4.1.6 - Arts partnerships
-
-

4.1.7 - Regional Amenities Fund
-
-

Total capital expenditure
9,275
1,258

5 Social and recreation

Pāpori me te hākinakina

The Council’s work in this strategic area 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

help to protect the most vulnerable people

keep people safe and healthy

strengthen communities.

Overall these activities contribute to the development of opportunities for people to live healthy lifestyles, realise their potential, and enjoy their city.

Social and recreation

Capital spend
2017/18
Operating spend
2017/18
How operating
costs are funded
Rates value
per $100

24.7

$ million

114.6

$ million

Key objectives, activities and focus for 2016–19

New for 2017/18 and key projects

2017/18 cost

New in 2017/18

Remove swimming pool spectator fees: As part of making recreation more accessible, the Council is looking at ways to support an accessible learn-to-swim environment – particularly for those people who might find entry fees a barrier. The removal of swimming pool fees for spectators and parents or guardians of children under 8 years old supports a more inclusive, family-focussed approach to developing children’s water safety knowledge and skills. The fee will be removed from 1 July 2017 and the estimated loss of revenue to the Council is anticipated to be approximately $100k annually. A spectator fee will still be charged for major aquatic tournaments and events, and additional spectator fees may be charged by the hosting organisation.

Revenue loss of $100k

Smokefree alfresco dining: Wellington has a goal to be smokefree by 2025. However, smoking often happens in outdoor dining areas. Outdoor dining in public spaces increases seating capacity and helps create vibrant, social outdoor areas. As an incentive for businesses, from 1 July 2017 the Council will offer a 100 percent discount on the per-square-metre fees for using pavement areas for those offering smokefree outdoor dining. Those with no smokefree restrictions receive a 50 percent discount. The estimated loss of revenue to the Council is anticipated to be $78k per year.

Estimated revenue loss of $78k per year.

Te Mahana programme and Te Whare Oki Oki (assisted accommodation for the homeless): Te Mahana is a community-driven strategy focussed on ending homelessness in Wellington. We are working with partners such as the Police, key social and health agencies, service providers and Central Government to deliver a housing first approach, which will provide accommodation and support to address the needs of the homeless. In the coming year we will progress the option of establishing a wet house, Te Whare Oki Oki, in Wellington with key stakeholders, and funding options will be considered as party of the LTP 2018–28.

No additional cost in 2017/18

Reduce anti-social street behaviour: Anti-social behaviour – in particular, begging – on city streets has been highlighted as an upcoming concern amongst Wellingtonians. We are working in partnership with key external agencies to develop a suite of projects focussed on effective, practical measures to address this issue. The goal is to provide alternatives to staying on the street and reduce both the numbers of people begging and incidences of anti-social behaviour.

No additional cost in 2017/18

New in 2017/18

Play areas: Following a detailed review of our play spaces policy, we have agreed to increase funding to improve the quality of the city’s play spaces. While there are currently over 100 play spaces across Wellington, there are still gaps in provision – one area being around Wakefield Park in Berhampore. In 2017/18, $200k will be invested in the development of a new play space at or near the park. Additional funding for development and renewals will be considered through the LTP 2018–28.

$200k for a place space around Wakefield Park.

Other key projects being advanced in 2017/18 include:

Johnsonville Library: This new library is intended to be the flagship facility for modern library services. It will showcase the efficiencies gained and improved customer service from operating the community facility as an integrated hub, and create the social infrastructure to support higher density residential development. Construction is planned to begin in November 2017 and finish in April 2019.

$5.183m of capital works in 2017/18

Social housing: Over the past few years we have been working to renew our social housing accommodation to ensure that it is fit for purpose. In the coming year we will continue work on the Arlington Flats projects.

$1.356m capital works in 2017/18

How we measure our performance

Objectives
What we measure
Activities

Social cohesion

Connected and resilient communities

Participation in community life for all

Greater use of existing facilities

Creating a safe and child-friendly city

The quality and usage of the recreation facilities we provide (nine measures with targets)
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

The quality and usage of the housing services we provide (five measures with targets)
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

The progress of the Housing Upgrade Project (one measure with target)
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 Wellington Region Emergency Management Office (WREMO)

Community connectedness and sense of wellbeing

The usage of our community and recreation support services (including libraries) (10 measures with targets)

The quality of our public health and safety services and programmes, our timeliness in responding to service requests (six measures with targets) and impact on perceptions on safety (as they affect quality of life)

For details of individual performance measures and targets for each activity see the appendices.

Activity budgets (cost of service statements)

5.1 RECREATION PROMOTION AND SUPPORT
2016/17
AP
GROSS EXPENDITURE
2017/18
AP
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

5.1.1 - Swimming pools
20,924
22,427

5.1.2 - Sportsfields
3,514
3,566

5.1.3 - Sportsfields (Synthetic)
1,353
1,601

5.1.4 - Recreation centres
9,998
10,028

5.1.5 - Recreation partnerships
1,107
1,325

5.1.6 - Playgrounds
795
837

5.1.7 - Marinas
673
641

5.1.8 - Golf course
260
248

5.1.9 - Recreation programmes
280
324

Total operating expenditure
38,904
40,998

Capital expenditure
($000)
($000)

5.1.1 - Swimming pools
1,853
2,249

5.1.2 - Sportsfields
905
608

5.1.3 - Sportsfields (Synthetic)
1,789
-

5.1.4 - Recreation centres
77
474

5.1.5 - Recreation partnerships
1,597
4,551

5.1.6 - Playgrounds
455
526

5.1.7 - Marinas
141
186

5.1.8 - Golf course
-
-

5.1.9 - Recreation programmes
-
-

Total capital expenditure
6,817
8,595

5.2 COMMUNITY SUPPORT
2016/17
AP
GROSS EXPENDITURE
2017/18
AP
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

5.2.1 - Libraries
22,494
21,741

5.2.2 - Access support (Leisure Card)
102
119

5.2.3 - Community advocacy
1,219
1,469

5.2.4 - Grants (Social and Recreation)
4,223
4,456

5.2.5 - Housing
25,104
26,463

5.2.6 - Community centres and halls
3,472
3,426

Total operating expenditure
56,615
57,675

Capital expenditure
($000)
($000)

5.2.1 - Libraries
9,521
7,633

5.2.2 - Access support (Leisure Card)
-
-

5.2.3 - Community advocacy
-
-

5.2.4 - Grants (Social and Recreation)
-
-

5.2.5 - Housing
23,861
5,197

5.2.6 - Community centres and halls
262
1,130

Total capital expenditure
33,644
13,960

5.3 PUBLIC HEALTH AND SAFETY
2016/17
AP
GROSS EXPENDITURE
2017/18
AP
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

5.3.1 - Burials and cremations
1,655
1,843

5.3.2 - Public toilets
2,962
3,131

5.3.3 - Public health regulations
5,254
5,966

5.3.4 - City safety
2,815
3,153

5.3.5 - WREMO (Wellington Region Emergency Management Office)
1,534
1,862

Total operating expenditure
14,219
15,955

Capital expenditure
($000)
($000)

5.3.1 - Burials and cremations
316
369

5.3.2 - Public toilets
1,622
1,637

5.3.3 - Public health regulations
-
-

5.3.4 - City safety
-
50

5.3.5 - WREMO (Wellington Region Emergency Management Office)
73
74

Total capital expenditure
2,010
2,010

6 Urban development

Tāone tupu ora

Our work in this strategic area includes enhancing the CBD public space, making improvements to the waterfront and suburban centres, developing public spaces such as urban parks and squares, looking after heritage in the city, assessing and issuing building and resource consents, ensuring earthquake-prone buildings are strengthened, and planning for the city’s future development.

The significant growth expected in Wellington over the next 30 years creates some challenges. We’re aiming to respond to those challenges in ways that ensure the city keeps its special character and enhances the liveability of the CBD and suburbs, while also enhancing the city’s resilience.

We fund these activities because they:

matter to the lives of individual Wellingtonians and to the community as a whole

enable the city to grow while retaining its character

provide the opportunity for people to live, work and play in an urban environment that is both attractive and sustainable.

Urban development

Capital spend
2017/18
Operating spend
2017/18
How operating
costs are funded
Rates value
per $100

20.8

$ million

29.3

$ million

Key objectives, activities and focus for 2016–19

New for 2017/18 and key projects

2017/18 cost

New for 2017/18

Develop a one-stop consent shop: The delivery of the Council’s land use, land development, consenting, food, entertainment, and beverage regulatory processes can be complex to navigate – particularly when a customer needs a number of consents from different areas of the Council. To make this easier, in the coming year the Council will progressively introduce a streamlined case management approach for services where the customer will only need to supply one application per project to a single case manager. Benefits to the customer include more efficient consenting, having a single point of contact, and faster processing times, as well as greater certainty and fewer surprises before significant investment is made.

No additional cost in 2017/18

Smart Building Sensors: With the recent Kaikoura earthquake it became apparent there was a need to invest in smart technology to enhance our knowledge about the status of Wellington buildings. We will develop a business case for deploying sensors into buildings in partnership with GNS Science, the Earthquake Commission and the Ministry of Business, Innovation and Employment to increase our knowledge of how buildings perform during an earthquake. The investment and deployment of sensors would enable us to make instant decisions about the safety and suitability of some of our larger building assists, inform which buildings should be prioritised for inspection/upgrade, what upgrade work is required and allow for earlier occupation into buildings post-disaster. We expect the business case to be completed in 2017 and that will inform investment decisions as part of the Long-term Plan 2018–28 (LTP).

No additional cost in 2017/18. Funding to be considered in 2018 LTP

Resilience Assessment for 500 homes: In 2017 we will develop a business case to investigate how the city can improve the resilience of new and existing houses in Wellington. Research shows that removing brick chimneys and securing subfloor structures to foundations increases residential resilience. This business case will support the development of a programme of work and support to make the city’s homes more resilient.

No additional cost in 2017/18. Funding to be considered in 2018 LTP

Rates remission for first-home builds: The rise of house prices and rents in Wellington has made housing affordability an issue. The Council is addressing this directly through increasing Council housing, more efficient consenting of new house builds, improving housing sector co-ordination with the establishment of a specialised housing task force, and introducing special housing areas. The Council wants to provide more support to first-home/apartment builders, and will offer a rates remission up to a maximum of $5000 on new residential apartments/dwellings in Wellington City boundaries that are on a separate rating unit and where construction is completed after 1 July 2017.

Additional $200k per year

Town Hall Earthquake Strengthening: The earthquake strengthening of the Town Hall has created an opportunity for Wellington to consider how it uses Civic Square. Since 2014, Wellington City Council, Victoria University and the New Zealand Symphony Orchestra (NZSO) have been investigating the feasibility of creating a ‘music hub’ operating across the Town Hall, adjacent Municipal Office Building and the Michael Fowler Centre. This has strong community support and planning and design will continue through 2017/18.

Total costs is $89.9m. (There is no rates impact in the 2017/18 year – this is expected from 2020/21 onwards)

How we measure our performance

Objectives
What we measure
Activities

Smart growth/urban containment

Resilience

Heritage & character protection

The quality of our urban planning, heritage protection and development work (seven measures with targets)
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

Timeliness of our building and development control services (two measures with targets)
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

The quality of our building and development control services (one measure with target)

The progress on earthquake risk mitigation (one measure with target)

For details of individual performance measures and targets for each activity see the appendices.

Activity budgets (cost of service statements)

6.1 URBAN PLANNING, HERITAGE AND PUBLIC SPACES DEVELOPMENT
2016/17
AP
GROSS EXPENDITURE
2017/18
AP
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

6.1.1 - Urban planning and policy
2,094
1,936

6.1.2 - Waterfront development
1,326
1,564

6.1.3 - Public spaces and centres development
2,224
2,408

6.1.4 - Built heritage development
1,998
1,745

Total operating expenditure
7,642
7,653

Capital expenditure
($000)
($000)

6.1.1 - Urban planning and policy
-
-

6.1.2 - Waterfront development
6,390
2,044

6.1.3 - Public spaces and centres development
4,162
1,358

6.1.4 - Built heritage development
-
-

Total capital expenditure
10,553
3,401

6.2 BUILDING AND DEVELOPMENT CONTROL
2016/17
AP
GROSS EXPENDITURE
2017/18
AP
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

6.2.1 - Building control and facilitation
13,624
14,049

6.2.2 - Development control and facilitation
5,971
6,213

6.2.3 - Earthquake risk mitigation - built environment
1,056
1,389

Total operating expenditure
20,650
21,651

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
3,041
17,372

Total capital expenditure
3,041
17,372

7 Transport

Waka

We look after hundreds of kilometres of streets and roads, as well as footpaths, cycle lanes, traffic signals, and car parks.

We also support public transport through bus priority measures, provide bus shelters, work suburb by suburb to improve traffic safety, and plan to ensure the city’s transport network meets future needs. We also work with stakeholders like Greater Wellington Regional Council and NZTA to improve networks and services in the city.

We fund these activities because a safe, reliable, efficient and sustainable transport system:

matters to the lives of individual Wellingtonians and to the community as a whole

enhances people’s quality of life

improves economic performance

reduces the city’s emissions profile.

Transport

Capital spend
2017/18
Operating spend
2017/18
How operating
costs are funded
Rates value
per $100

60.2

$ million

66.5

$ million

Key objectives, activities and focus for 2016–19

New for 2017/18 and key projects

2017/18 cost

New for 2017/18

LED street lighting: NZTA has provided a one-off opportunity to receive an 85 percent subsidy to assist with the conversion of 18,000 inefficient sodium and mercury vapour lights to highly efficient and versatile LED street lights. The cost of the total project is $15.2 million, and the Council’s portion of that is $2.3 million. There will be no additional impact on rates as we will fund this through existing budgets using a combination of 2016/17 transport carry forwards ($1m), deferral of CBD speed limits funding for one year ($1.3m) and other minor one-off adjustments to other programmes. A detailed business case is required to finalise funding, and determine the emission reduction and resilience benefits. It will be finalised later in the year.

Additional $2.3m capital expenditure

Other key projects being advanced in 2017/18 include:

Cycleways: We have completed an extensive engagement process with the Island Bay community to address concerns about the current cycleway design. The next step is to develop options that will go out for public consultation later in 2017. Engagement on cycleways and implementation work will also continue in other parts of the city, including Thorndon and Miramar.

Any additional costs to be confirmed once final option agreed

Let’s Get Wellington Moving: This project was launched with the key objectives of developing a resilient transport network that is reliable, efficient, and adaptable in addition to increasing active transport and reducing the use of private vehicles. The project team has been engaging with Wellingtonians on how best to achieve this, and will be consulting on proposals later in 2017.

No additional cost in 2017/18

How we measure our performance

Objectives
What we measure
Activities

Increased active mode share

Safe roads

Reliable transport routes

Reduced emissions

The quality and timeliness of the transport infrastructure and service (eight measures with targets)
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

The quality of our parking provision (four measures with targets)
7.2.1 Parking

For details of individual performance measures and targets for each activity see the appendices.

Activity budgets (cost of service statements)

7.1 TRANSPORT
2016/17
AP
GROSS EXPENDITURE
2017/18
AP
GROSS EXPENDITURE

Operating expenditure
($000)
($000)

7.1.1 - Transport planning
2,651
2,605

7.1.2 - Vehicle network
24,101
25,133

7.1.3 - Cycle network
1,376
1,802

7.1.4 - Passenger transport network
2,450
1,417

7.1.5 - Pedestrian network
7,061
7,469

7.1.6 - Network-wide control and management
7,525
7,744

7.1.7 - Road safety
6,353
6,504

Total operating expenditure
51,516
52,673

Capital expenditure
($000)
($000)

7.1.1 - Transport planning
-
-

7.1.2 - Vehicle network
21,558
22,414

7.1.3 - Cycle network
7,522
12,091

7.1.4 - Passenger transport network
888
1,116

7.1.5 - Pedestrian network
4,671
4,620

7.1.6 - Network-wide control and management
2,380
1,392

7.1.7 - Road safety
3,538
18,315

Total capital expenditure
40,557
59,950

7.2 PARKING
2016/17
AP
GROSS EXPENDITURE
2017/18
AP
ROSS EXPENDITURE

Operating expenditure
($000)
($000)

7.2.1 - Parking
13,925
13,844

Total operating expenditure
13,925
13,844

Capital expenditure
($000)
($000)

7.2.1 - Parking
496
297

Total capital expenditure
496
297

Council Controlled Organisations

Wellington Regional Stadium Trust

Structure
Objectives
Activities
PERFORMANCE INDICATORS

The Stadium is a joint initiative of Greater Wellington Regional Council (GWRC) and Wellington City Council.

Trustees are jointly appointed by GWRC and Wellington City Council.

At 1 January 2017 the Trust board comprised John Shewan (Chair), Dame Therese Walsh, Sue Elliott, Rachel Taulelei, Mark McGuinness, Steven Fyfe, Councillor Simon Marsh and Councillor David Ogden.

The Chief Executive is Shane Harmon.
The Trust provides high-quality facilities for rugby, cricket and other sports codes, musical and cultural events, and other users including sponsors and event and fixture organisers.
The Trust owns, operates and maintains the Stadium as a multipurpose sporting and cultural venue.

It manages a busy event programme and seeks opportunities to provide regular high-quality events.

The Trust ensures the Stadium is provided to the community for appropriate usage and it administers the Trust’s assets and the Stadium on a prudent commercial basis.
The delivery of a range of large-scale sporting and non-sporting events and the continuation of a full event calendar for the Stadium.

Improve hirer and fan experiences and satisfaction with the venue.

Demonstrate the Stadium’s economic benefit to the region.

Achieve utilisation and attendance figures, and maintain the Trust’s financial sustainability.

The Wellington Cable Car Limited

Structure
Objectives
Activities
PERFORMANCE INDICATORS

The company is wholly owned by Wellington City Council.

At 1 January 2017 the board comprised two Council appointed members: Anthony Wilson (Chair) and Andy Matthews.

The Chief Executive is Simon Fleisher.
The company owns and operates the Cable Car and owns and maintains the overhead network that supports the Greater Wellington Regional Council’s trolley bus passenger service.
The company maintains the cable cars and associated track, plant, tunnels, bridges and buildings in accordance with best engineering practice, and to meet the certification requirements of the New Zealand Transport Agency.

It markets and manages the Cable Car passenger service.

It also manages the contract for the inspection, maintenance and the repair of the trolley bus overhead network, and will be managing its future decommissioning.
Performance measures include passenger utilisation, satisfaction and cable car reliability.

Wellington Museums Trust

Structure
Objectives
Activities
PERFORMANCE INDICATORS

The Trust was established in 1995 and all trustees are appointed by Wellington City Council.

At 1 January 2017 the Trust board comprised Jackie Lloyd (Chair), Rachel Farrant, Jill Wilson, Jane Wrightson and Councillor Diane Calvert.

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

Its objectives are to deliver high-quality experiences, events and exhibitions at its facilities.
Experience Wellington 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.

It manages conservation and care for the objects of its collections, and conducts research and development to enhance visitors’ experiences. It works with national and international artists and collectors and offers quality educational experiences to children and young people.
Performance measures include general visitation and visitor satisfaction metrics.

A range of activity cost metrics, per visitor.

Average revenue per visitor and non-Council donations and funding support.

Karori Sanctuary Trust (trading as Zealandia)

Structure
Objectives
Activities
PERFORMANCE INDICATORS

The Karori Sanctuary Trust, trading as ZEALANDIA, began in 1995 as a community based conservation initiative supported by Wellington City Council and became a Council Controlled Organisation on 1 October 2016.

The Guardians of the Karori Sanctuary Trust have a role in nominating candidates for appointment to the Trust board, while Wellington City Council has the overall responsibility to appoint members to the Trust board.

At 1 January 2017, the Trust board comprised Denise Church (Chair), Philip Meyer, Pam Fuller, Steven Thompson, David Bibby and Russell Spratt.
ZEALANDIA’s vision is to connect people with nature by restoring the sanctuary valley and extending its halo of biodiversity.

The Trust is building the organisations capacity to provide learning experiences and research-based knowledge to help drive transformational changes toward a nature-rich future.
ZEALANDIA manages ongoing conservation and restoration work in the sanctuary valley, works with local organisations and community groups to support local biodiversity, provides educational experiences, and connects people to New Zealand's unique natural heritage.
Performance measures include a range of conservation related measures.

General visitation, educational visitation and membership numbers.

Visitor satisfaction metrics.

Support by volunteers.

A range of activity cost metrics, per visitor

Average revenue per visitor and non-Council donations and funding support.

Wellington Regional Economic Development Agency Limited (WREDA)

Structure
Objectives
Activities
PERFORMANCE INDICATORS

WREDA is 80% owned by Wellington City Council and 20% owned by Greater Wellington Regional Council.

At 1 January 2017 the board was chaired by Peter Biggs and included Thomas Pippos, Grant Guilford, Dave Gibson, Lorraine Witten, Matt Clark and Richard Laverty.

The Chief Executive (acting) is Derek Fry.

The Wellington Regional Strategy committee implements and develops the Wellington Regional Strategy, including overseeing the WREDA.

The Wellington Region Strategy Committee (WRS) committee comprises 10 members including one regional councillor, four members nominated by Wellington City Council, one member nominated by each of Kāpiti Coast District Council, Hutt City Council, Porirua City Council and Upper Hutt City Council, and one member nominated by the three Wairarapa district councils.

Wellington City Council’s members on the WRS committee are Mayor Justin Lester (Chair), Deputy Mayor Paul Eagle, Councillors Diane Calvert and Simon Marsh.
WREDA is the regional economic development agency for the lower North Island, combining the economic development activities of Wellington City Council and Greater Wellington Regional Council to advance the prosperity and liveability of the Wellington region.

WREDA’s aim is that by 2025, this will be the most prosperous, liveable and vibrant region in Australasia.
Promotes Wellington as a domestic and international visitor destination.

Markets Wellington as a convention and conference destination.

Provides visitor information services through WellingtonNZ.com.

Supports retail growth initiatives.

Facilitates new tourism and event products and services.

Undertakes economic development initiatives for the region.

Manages the city’s major events calendar and the city’s venues.
WREDA’s performance is measured against a broad range of outcomes suitable to the range of programmes that WREDA invests in.

Measures include venue utilisations, event attendances and city visits, accommodation statistics and visitor spend.

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.

A representative from each council sits on the regional Wellington Water Committee that provides overall leadership and direction for the company.

As at 1 January 2017, 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 and Upper Hutt City 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 ongoing 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 in 2003. The Council appoints all trustees to the board.

As at 1 January 2017, the Trust board is chaired by Craig Ellison and includes Raewyn Bleakley, Michael Potts, Sue Paterson and Councillor Sarah Free.

The Chief Executive is Karen Fifield.
The Zoo 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.
The Wellington Zoo Trust manages the assets and operations of Wellington Zoo.

It cares for resident animals and manages the animal collection.

The Zoo provides a high-quality visitor experiences and participates in captive management breeding and breed-for-release programmes.

The Zoo develops and maintains high-quality animal exhibits, delivers educational material and learning experiences, and contributes to zoological, conservation and facilities management research projects.
Performance measures include conservation and species management indicators.

General visitation, educational visitation numbers and visitor satisfaction metrics.

A range of activity cost metrics, per visitor.

Average revenue per visitor and non-council donations and funding support.

Basin Reserve Trust

Structure
Objectives
Activities
PERFORMANCE INDICATORS

The Trust board comprises four trustees, of whom two are appointed by the Council and two by Cricket Wellington.

At 1 January 2017 the Trust board comprised are Sir John Anderson (Chair), Councillor Simon Woolf, John Greenwood and Mike Horsley.

At 1 January 2017, the Cricket Wellington Chief Executive was Peter Clinton.
The Trust was established in 2005 to promote and coordinate the raising of funds and to manage and operate the Basin Reserve for recreational activities and for the playing of cricket.
The day-to-day management of the Basin Reserve is carried out by Cricket Wellington under a management agreement with the Trust.

Cricket Wellington manages the Basin Reserve for recreational activities and the playing of domestic and international cricket.

The Trust preserves and enhances the heritage value of the Basin Reserve.
Performance indicators include facilities usage and attendance measures.

Ground utilisation and event based measures.

Part C: Financial information

2017/18 Financial overview

ANNUAL PLAN

Annual plans give effect to Long-term Plans (LTPs). They identify, in detail, the proposed activity to be undertaken and how expenditure will be funded for a given year. 2017/18 is the third year of our Long-term Plan 2015–25 (LTP).

FINANCIAL SUMMARY

Measure | Annual Plan 2017/18 | Long-term Plan 2015–25
Operating expenditure | $480.3 million | $473.5 million
Capital expenditure | $182.5 million | $206.3 million
Average rates increase after growth | 3.3 percent | 5.1 percent
Forecast year-end borrowings | $528.2 million | $570.2 million
Debt over operating income | 114.7 percent | 124.4 percent

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

Setting limits on our rates and borrowings requires prioritisation of spending decisions and the ongoing review of existing services. The parameters we set for our rates levels and rates increases as part of the Long-term Plan 2015–25 are:

RATES LIMITS

Rates limits | 2017/18
Rates increase limit (after growth) first triennium average | 4.5%
Rates increase limit (after growth) 10-year average | 3.9%

The annual plan rates increase is 3.3 percent, which is 1.8 percent below the increase signalled during the Long-term Plan. This means the 3-year average rates increase is at 3.9 percent, which is below the limit set at 4.5 percent in the LTP and this is compliant with our 10-year limit.

The parameters we have set for borrowings as part of the Long-term Plan 2015-25 are:

Borrowings limits
Operating Target
Prudential Limits
Annual Plan
2017/18

Long-term Plan 2015–25 limit:

Net borrowing as a percentage of income
<150.0%
<175.0%
114.7%

Prudential limits:

Net interest as a percentage of income
<15.0%
<15.0%
5.5%

Net interest as a percentage of annual rates income
<20.0%
<20.0%
8.6%

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

For 2017/18 we are within all our borrowing and prudential limits.

Finances at a glance

Operational expenditure

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

The Council plans to spend $480.3 million on operational expenditure in 2017/18. This compares with $473.5 million forecast for 2017/18 in the Long-term Plan 2015–25 (LTP).

The graph below shows this operational expenditure by activity area in 2017/18.

Sources of operational funding

Some 65 percent of our operational expenditure is funded from a combination of general rates (paid on all rateable 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. Figure 1 shows how our operational expenditure will be funded in 2017/18.

Detailed information on all of our rating mechanisms is included in the Funding Impact Statements on page 66.

Your rates

For 2017/18, total rates are forecasted to increase by 4.4 percent before allowing for growth of 1.1 percent in our ratepayer base. After allowing for expected growth, our total rates are forecast to increase by 3.3 percent.

Rates on the average residential property (valued at $571,930) are expected to increase by 3.2 percent to $2,401 (excluding GST) in 2017/18. An average rates increase of around 3.6 percent for commercial properties, includes the impact of increases in metered water charges in 2017/18. These increases average to a 3.3 percent rates impact overall ratepayers, after growth in the ratepayer base have been taken into account.

Explaining your rates

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

General rates are used to fund activities where the Council is unable to clearly identify a specific group of ratepayers who receive the benefit of that activity, or where is it not possible or suitable for that group to be targeted to pay. General rates are split over two categories: the base sector general rate (residential) and the commercial sector general rate. These are both 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 2017/18, the commercial sector general rate per dollar of capital value is to remain at 2.8 times higher than the base sector general rate for a residential property of the same value.

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

The Council is on a 3-yearly valuation cycle and for the 2017/18 rating year the September 2015 valuations will be used to distribute the total rates requirement across all properties. The current property valuation will be used to distribute the total rates requirement for the 2016/17, 2017/18 and 2018/19 rating years.

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

the overall change in the Council’s rates requirement

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

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

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

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

changes in the Council’s remissions policy.

Changes to our rating mechanisms

New targeted rate for Tawa Business Improvement District: A new targeted rate is being included in the Annual Plan 2017/18 under the terms of the Business Improvement District Policy, for $95,000 (excluding GST) to be applied to commercially rated properties in the Tawa Business Improvement District area

Liability for this rate will be calculated as a fixed amount of $520 (excluding GST) per rating unit, plus a rate per dollar of rateable capital value for any capital value over $350,000 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 can be easily identified

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

intergenerational equity (i.e. do the benefits accrue to future generations as well as present ones)

the ‘polluter pays’ principle (i.e. 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 2017/18 we propose to make no changes to the policy.

Understanding the Council’s budgeted surplus

The Council is forecasting a net operating surplus of $32.4 million in 2017/18. 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.

Capital expenditure

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

Capital expenditure pays for purchasing, building or developing the Council’s assets (e.g. pipes, roads, libraries, swimming pools). Our capital expenditure (excluding ‘carry-forwards’ and loans to other organisations) is forecast to be $182.5 million in 2017/18, $23.8 million less than in the same period forecast in the Long-term Plan 2015-25. The graph below shows where this capital expenditure will be spent by activity area in 2017/18.

Sources of capital funding

We fund capital expenditure from depreciation, borrowings, NZTA subsidies, grants and development contributions. For asset renewals, the main funding source is depreciation. For new assets and upgrades, the main funding sources are borrowings, subsidies and grants. Figure 2 shows how our capital expenditure is being funded in 2017/18.

Borrowings: Total borrowings are forecast to be $528.2 million at the end of 2017/18. This equates to a net debt over operating income of 114.7 percent, compared to 124.4 percent as presented in the Long-term Plan 2015–25 (LTP). Our forecast asset base totals $7.4 billion in 2017/18.

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 2017/18 plan is $2 million worth of property asset disposals, with proceeds being used to reduce Council borrowings. There is also sale proceeds for the sale of the Municipal Office Building and Site 9 on the waterfront. Every specific property asset sale will be publicly consulted upon as per the standard Council process.

Variances from the Long-term Plan

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

changes in direct costs

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

the suitability of forecast inflation and Consumer Price Index (CPI) adjustments

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

This means the costs for each activity may differ from those we had originally forecast in the LTP.

Annual Plan Disclosure Statement for year ending 30 June 2018

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.

Rates affordability benchmark | Planned | Met
• income | Total rates collected $302.0m | $295.6m | Yes
• increases | 4.5% after growth average rates increase over the first triennium | 3.3% | Yes
Debt affordability benchmark | Net closing debt over operating income 175% | 114.7% | Yes
Balanced budget benchmark | 100% | 106% | Yes
Essential services benchmark | 100% | 161% | Yes
Debt servicing | 10% | 4.9% | 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 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 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 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%] of its planned revenue.

Fees and user charges

Our Revenue and Financing Policy guides our decisions on how to fund Council services. Under the policy, we take into account who benefits from a service (individuals, parts of the community, or the community as a whole) to help us determine how the service should be funded. The policy sets targets for each Council activity, determining what proportion should be funded from user charges, general rates, targeted rates and other sources of income.

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

Sewage collection and disposal network

Swimming pools

Sportsfields

Marinas

Building control and facilitation

Public Health Regulations

Parking (addressed through the Traffic Bylaw process)

New fees are proposed to be implemented as of 1 July 2017 and are inclusive of GST. For more information see wellington.govt.nz

Sewage collection and disposal network

Listed below are the increases to some of our fees for the sewage collection and disposal network.

Sewage collection and disposal network | 2016/17 Fee | 2017/18 Fee
Conveyance & Transport of Trade Waste
Volume |  |
Up to 100m³/day | $0.29/m³ | $0.30/m³
Above 7000m³/day | $0.91/m³ | $0.93/m³
B.O.D (Biochemical Oxygen Demand) |  |
Up to 3150kg/day | $0.31/m³ | $0.32/m³
Above 3150kg/day | $0.69/m³ | $0.71/m³
Suspended Solids |  |
Up to 1575kg/day | $0.30/m³ | $0.31/m³
Above 1575kg/day | $0.56/m³ | $0.57/m³

Swimming pools

Listed below are the changes to some of our spectator fees for swimming pools.

Swimming pools | 2016/17 Fee | 2017/18 Fee
Spectator fee for parents/guardians of children under 8 | $1.00 | Nil
Spectator fee – major events and tournaments | $1.00 | $1.00

Note: a spectator fee will still be charged for major aquatic tournaments and events, and additional spectator fees may be charged by the hosting organisation.

Sportsfields

Listed below are the increases to some of our fees for sportsfields.

Sportsfields | 2016/17 Fee | 2017/18 Fee
Cricket
Casual |  |
Level 1 | $386.50 | $388.00
Artificial pitch on concrete base | $165.00 | $170.00
Seasonal |  |
Level 1 | $2,917.00 | $2,930.00
Level 2 | $2,433.00 | $2,440.00
Level 3 | $1,417.00 | $1,420.00
Artificial pitch on concrete base | $955.00 | $970.00
Rugby, League, Soccer/Football, Aussie Rules
Casual |  |
Level 2 | $107.00 | $108.00
Level 3 | $82.50 | $85.00
Seasonal |  |
Level 1 | $2,350.00 | $2,400.00
Level 2 | $1,535.00 | $1,600.00
Level 3 | $1,299.00 | $1,300.00
Softball
Casual |  |
Level 1 | $176.00 | $178.00
Level 2 | $124.00 | $125.00
Seasonal |  |
Level 1 | $739.50 | $750.00
Level 2 | $497.00 | $500.00
Touch, 5-a-side, Ultimate, Gridiron
Casual |  |
Level 1 | $185.50 | $187.00
Level 2 | $149.00 | $150.00
Seasonal |  |
Level 1 | $1,535.00 | $1,560.00
Level 2 | $1,186.00 | $1,200.00
Netball – per Court
Court per season | $142.00 | $144.00
Off-season or organised | $11.00 | $12.00
Casual | $43.00 | $44.00
Tennis
Court per season | $193.00 | $195.00
Casual | $43.00 | $44.00
Cycling
Casual | $173.00 | $176.00
Seasonal | $1,747.00 | $1,760.00
Athletics
Casual | $633.50 | $634.00
WRFU Speed Trials | $141.00 | $144.00
Training
Ground Only (Unserviced) |  |
1 night | $107.00 | $108.00
1 night (season) | $384.00 | $386.50
3 nights (season) | $1,150.50 | $1,158.00
5 nights (season) | $1,917.50 | $1,920.00
Ground and Changing Rooms |  |
1 night | $193.00 | $195.00
1 night (season) | $808.00 | $818.00
2 nights (season) | $1,613.00 | $1,633.00
3 nights (season) | $2,420.00 | $2,450.00
4 nights (season) | $3,227.00 | $3,267.00
5 nights (season) | $4,035.00 | $4,085.00
Elite Parks
Rugby League Park | $639.50 | $642.00
Newtown Park | $639.50 | $642.00
Add-Ons
Groundsman – hourly rate(minimum 2 hours) | $36.00 | $40.00
Toilets Open | $36.00 | $38.00
Toilets and Changing rooms open | $86.00 | $88.00

Marinas

Listed below are the increases to some of our fees for marinas.

Marinas | 2016/17 Fee | 2017/18 Fee
Clyde Quay |  |
Mooring | $1,044.00 | $1,075.00
Boat Shed (2 to 13) | $2,196.00 | $2,262.00
Boat Shed (14 to 27) | $1,976.00 | $2,036.00
Boat Shed (28, 29) | $2,744.00 | $2,826.00
Boat Shed (38B) | $1,586.00 | $1,634.00
Boat Shed (38A to 42B, 48A, 48B) | $2,280.00 | $2,348.00
Boat Shed (43A to 47B) | $2,636.00 | $2,716.00
Dinghy Rack | $184.00 | $189.00
Evans Bay |  |
Berth | $2,632.00 | $2,712.00
Berth (Sea Rescue Jetty) | $1,548.00 | $1,594.00
Boat Shed (8 to 11) | $1,036.00 | $1,067.00
Boat Shed (1 to 7, 12 to 32) | $2,072.00 | $2,135.00
Boat Shed (33 to 46) | $3,108.00 | $3,200.00
Dinghy Locker | $310.00 | $319.00
Live-Aboard fee | $542.00 | $558.00
Trailer Park | $117.00 | $120.00

Building control and facilitation

Listed below are the increases to some of our fees for building control and facilitation.

Note that in January 2017, the Building (Pools) Amendment Act 2016 repealed the Fencing of Swimming Pools Act 1987 and inserted provisions relating to residential pool safety in the Building Act 2004. These changes mean that swimming pools inspection fees are now incorporated under the Building Inspections section in the schedule below.

Note that as of the 1st of July 2017 New Zealand Fire Service will be amalgamated into a new organisation called Fire and Emergency New Zealand. The Fire and Emergency New Zealand Act 2017 makes no provision for charging for services, therefore Wellington City Council will no longer charge for Fire Service Reports as part of the building consents process.

Building Control and Facilitation Fees
2016/17 Fee
2017/18 Fee

Customer services

Pre-application meetings: consent officer / expert / compliance officer (2 hours total officer time free, then a charge per hour thereafter).
$159.00
$163.50

Monthly report of Issued Building Consents
$75.50
$77.50

Official Information requests (property): Disbursements - 1st 20 A4 sheets free - 20 cents per additional sheet
POA
POA

Administration Fee (refunds / cancellations)
$100.00
$103.00

Time extension initial fee (30 mins admin, 30 mins inspector). Any time spent over this initial time will be charged at the relevant hourly rate
$129.50
$133.25

Time extension - additional inspectors time, hourly rate
$159.00
$163.50

Administration fee (other) - hourly rate
$100.00
$103.00

Restricted building work check (per notification)
$50.00
$51.50

Minor works

Drainage/Plumbing (val less than $5000)
$299.00
$307.50

Free standing fireplace
$198.50
$204.00

In-built fireplace
$418.00
$430.00

Additional inspection fee (per hour)
$159.00
$163.50

Lodgement fee

Lodging fee for Building Consents
$100.00
$103.00

Plan check

Less than $10,000 (Category 1)
$357.00
$367.00

Less than $10,000 (Category 2)
$555.00
$570.75

Less than $10,000 (Category 3)
$714.00
$734.00

$10,001 - $20,000 (Category 1)
$793.00
$815.50

$10,001 - $20,000 (Category 2)
$793.00
$815.50

$10,001 - $20,000 (Category 3)
$793.00
$815.50

$20,001 - $100,000 (Category 1)
$872.50
$897.25

$20,001 - $100,000 (Category 2)
$872.50
$897.25

$20,001 - $100,000 (Category 3)
$872.50
$897.25

$100,001 - $500,000 (Category 1)
$952.00
$979.00

$100,001 - $500,000 (Category 2)
$1,428.00
$1,468.50

$100,001 - $500,000 (Category 3)
$1,428.00
$1,468.50

$500,001 - $1,000,000 (Category 1)
$2,221.00
$2,283.75

$500,001 - $1,000,000 (Category 2)
$2,538.00
$2,609.75

$500,001 - $1,000,000 (Category 3)
$2,855.00
$2,935.75

$1,000,000 + (Category 1)
$2,935.00
$3,018.00

$1,000,000 + (Category 2)
$2,935.00
$3,018.00

$1,000,000 + (Category 3)
$2,935.00
$3,018.00

for each $500,000 or part thereof over $1,000,000
$753.50
$774.75

Consent Suspend Fee (to review additional information), charge per additional hour of officer re-assessment time.
$159.00
$163.50

Plan check for fast track consents

Fast Track - consents only - issued within 10 days (criteria applies, and applications will only be accepted on a case by case basis)
2 x consent approval charges
2 x consent approval charges

Fast Track - consents only - issued within 5 days (criteria applies, and applications will only be accepted on a case by case basis).
3 x consent approval charges
3 x consent approval charges

Multi-proof consent

Lodgement fee
$100.00
$103.00

Plan check - est 3 hours @$163.50
$477.00
$489.50

Additional time per hour
$159.00
$163.50

Code Compliance Certificate

Code Compliance Certificate (for Category 1 applications)
$100.00
$103.00

Code Compliance Certificate (for Category 2 applications)
$100.00
$103.00

Code Compliance Certificate (for Category 3 applications)
$126.00
$129.75

Building inspections

Hourly charge: the initial payment is based on estimate of inspections required. The final charges are based on actual time.
$159.00
$163.50

Engineering inspections (not covered by a Producers Statement), including fire, engineering, structural engineering for an unusual proposal or specific design
actual cost plus $100
actual cost plus $103

Structural check & additional charges

Deposit for Category 1 structural work (on Plan Reviews)
$283.50
$291.50

Deposit for Category 2 structural work (on Plan Reviews)
$386.50
$397.25

Deposit for Category 3 structural work (on Plan Reviews)
$706.00
$725.75

Deposit for Category 1 structural work (for Amended Plans)
$319.50
$328.50

Deposit for Category 2 structural work (for Amended Plans)
$319.50
$328.50

Deposit for Category 3 structural work (for Amended Plans)
$422.50
$434.25

Hourly Charge for Engineers (including internal overheads), over and above deposit
$285.00
$293.00

Hourly charge for Contract Management, over and above deposit
$136.00
$139.75

Deposit for all categories for structural checking not supported by a producer statement from a Chartered professional engineer
$706.00
$725.75

Levies

Department of Building and Housing (DBH) levy per $1,000 (of project value)
$2.01
$2.01

Building Research (BRANZ) levy per $1,000 (of project value)
$1.00
$1.00

Compliance schedule

New compliance schedule (linked with Building Consent).
This is the minimum charge (based on one hour of processing), additional charges will apply for time taken over this, at $163.50 per hour for additional hours
$238.00
$244.75

Additional charge per hour for new compliance schedule (linked with Building Consent)
$159.00
$163.50

Alterations and amendments to compliance schedule (linked to building consent or application for amendment to Compliance Schedule (CS) Form 11) will be charged on a time-taken basis at $163.50 per hour of officer time.
$159.00
$163.50

Minor compliance schedule amendments - change of owner/ agent, minor changes to Compliance Schedule requested by owner/ agent. This is the minimum charge (based on 15 min of processing). Additional charges will apply for time taken over this, at $163.50 per hour for additional hours. (Application for amendment to Compliance Schedule required Form 11).
$40.00
$41.00

Certificate lodgement

Processing time per hour
$159.00
$163.50

Preparation of legal documents (covers first two hours of processing time)
$300.00
$308.50

Disbursement of legal costs for registering certificates against titles
Actual Cost
Actual Cost

S77 building over two or more allotments - legal costs
Actual Cost
Actual Cost

S72 land subject to hazards - Land Information New Zealand (LINZ) lodgement
Actual Cost
Actual Cost

Certificate of Public Use (CPU)

Initial fee (includes 1 hour processing time)
$159.00
$163.50

Processing time over 1 hour
$159.00
$163.50

Lodgement fee
$75.00
$77.00

Amended Plan

Initial fee (includes 1 hour processing time)
$159.00
$163.50

Processing time over 1 hour
$159.00
$163.50

Lodgement fee
$75.00
$77.00

Project Information Memorandum (PIM) - if lodged with building consent

PIM ONLY - single residential dwelling including accessory buildings
$397.00
$408.25

PIM ONLY - other
$476.00
$489.50

Certificates of Acceptance

Lodgement fee
$100.00
$103.00

Less than $10,000 (Category 1)
$674.50
$693.50

Less than $10,000 (Category 2)
$872.50
$897.25

Less than $10,000 (Category 3)
$1,031.50
$1,060.75

$10,001 - $20,000 (Category 1)
$1,110.50
$1,142.00

$10,001 - $20,000 (Category 2)
$1,110.50
$1,142.00

$10,001 - $20,000 (Category 3)
$1,110.50
$1,142.00

$20,001 - $100,000 (Category 1)
$1,507.00
$1,549.75

$20,001 - $100,000 (Category 2)
$1,507.00
$1,549.75

$20,001 - $100,000 (Category 3)
$1,507.00
$1,549.75

$100,001 - $500,000 (Category 1)
$1,586.50
$1,631.50

$100,001 - $500,000 (Category 2)
$2,062.00
$2,120.25

$100,001 - $500,000 (Category 3)
$2,062.00
$2,120.25

$500,001 - $1,000,000 (Category 1)
$2,855.00
$2,935.75

$500,001 - $1,000,000 (Category 2)
$3,172.50
$3,262.25

$500,001 - $1,000,000 (Category 3)
$3,490.00
$3,588.75

$1,000,000 + (Category 1)
$3,569.00
$3,670.00

$1,000,000 + (Category 2)
$3,569.00
$3,670.00

$1,000,000 + (Category 3)
$3,569.00
$3,670.00

for each $500,000 or part thereof over $1,000,000
$753.50
$774.75

Consent Suspend Fee (to review additional information), charge per additional hour of officer re-assessment time.
$159.00
$163.50

Building Warrant of Fitness

Independent Qualified Person (IQP) registration fee (New & Renewal)
$159.00
$163.50

Additional charge for each new competency registered
$75.00
$77.00

Building Warrant of Fitness - Annual Certificate.
This is the base charge for 1 specified system. Additional charges will apply for time over 0.5 hours
$79.50
$81.75

Building Warrant of Fitness - Annual Certificate.
This is the base charge for 2-10 specified systems. Additional charges will apply for time taken over 1 hour
$159.00
$163.50

Building Warrant of Fitness - Annual Certificate.
This is the base charge for 11+ specified systems. Additional charges will apply for time taken over 1.5 hours
$238.00
$244.75

Additional charge per hour for processing Annual Certificate, where processing time exceeds that allowed for in the base charge.
$159.00
$163.50

Building Warrant of Fitness Inspection (per hour)
$159.00
$163.50

Special activity and monitoring

Hourly charge for officer time considering proposals and monitoring compliance
$159.00
$163.50

Building Certificate (pre-requisite for liquor license application)

Where application for building certificate received with application for town planning certificate
$159.00
$163.50

Where application received independently
$257.00
$264.25

Additional charge per hour for processing Building Certificate, where processing time exceeds one hour
$159.00
$163.50

LIM and Information Services

LIMs : Residential
$323.50
$333.25

Fast track residential LIMs
$485.00
$499.50

LIMs: Commercial Base Fee
$755.00
$777.75

LIMs : Per hour after 7 hrs
$100.00
$103.00

Property Reports: Building Consents
$151.00
$155.50

Property Reports: Multi-residential 3-8 unit property
$220.50
$227.00

Property Reports: Multi-residential 8+ unit property
$234.00
$241.00

Building Consent printout (site specific)
$27.00
$27.75

Certificate of Title
$26.00
$26.75

Public Health Regulations

Listed below are the changes to Public Health fees:

Public Health | 2016/17 Fee | 2017/18 Fee
Template or Model Food Control Plan
Verification |  |
1st verification – Normal (changed from 2.5 to 4 hours) | $387.50 | $620.00
2nd verification – Normal (changed from 2.5 to 4 hours) | $387.50 | $620.00
1st verification – Simple (2 hours) | N/A | $310.00 (New)
2nd verification – Simple (2 hours) | N/A | $310.00 (New)
Reduced Verification – 1 hour | $155.00 | Removed
National Programme
Verification |  |
1st verification | $155.00 (1 hour) | $310.00 (2 hours)
2nd verification | $155.00 (1 hour) | $310.00 (2 hours)
Pavement / Foothpath Permissions |  |
Central city (per m2) – Non-smoking area | $90.00 | Nil
Central city (per m2) – Smoking area | $90.00 | $45.00
Suburbs (per m2) – Non-smoking area | $58.50 | Nil
Suburbs (per m2) – Smoking area | $58.50 | $29.25

Parking

New hourly fee for parking within the Central Business District will be progressed by the City Strategy Committee in accordance with Council’s separate process for developing resolutions under the Traffic Bylaw. The changes in fees are:

Parking – per hour
(2 hour max stay)
2016/17 Fee
2017/18 Fee

Zone A1 (see map below)
$4.00
$4.50

Funding impact statements

WHOLE OF COUNCIL

2016/17
AP
$000
2017/18
AP
$000
Variance
to AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
160,913
170,671
9,758

Targeted rates (other than a targeted rate for water supply)
123,231
126,135
2,904

Subsidies and grants for operating purposes
8,086
9,601
1,515

Fees and charges
123,171
134,003
10,832
1

Interest and dividends from investments
11,125
11,294
169

Local authorities fuel tax, fines, infringement fees, and other receipts
9,178
8,963
(215)

Total operating funding (A)
435,704
460,667
24,963

Applications of operating funding

Payments to staff and suppliers
291,914
302,602
10,688
2

Finance costs
25,617
25,420
(197)

Internal charges and overheads applied
-
-
-

Other operating funding applications
43,007
45,889
2,882

Total applications of operating funding (B)
360,538
373,911
13,373

Surplus (deficit) of operating funding (A - B)
75,166
86,757
11,591

Sources of capital funding

Subsidies and grants for capital expenditure
32,950
46,313
13,363
3

Development and financial contributions
2,000
2,000
-

Increase (decrease) in debt
71,263
88,044
16,781

Gross proceeds from sales of assets
4,600
10,350
5,750

Lump sum contributions
-
-
-

Total sources of capital funding (C)
110,813
146,707
35,894

Applications of capital funding

Capital expenditure

- to meet additional demand
1,922
1,810
(112)

- to improve the level of service
87,124
79,445
(7,679)

- to replace existing assets
91,736
101,217
9,481

Increase (decrease) in reserves
5,197
50,992
45,795
4

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
185,979
233,464
47,485

Surplus (deficit) of capital funding (C - D)
(75,166)
(86,757)
(11,591)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
101,975
106,417
4,442

Notes:

The majority of this variance is the recognition of 3rd party revenue related to the contract with Dimension Data to delivery our ICT infrastructure.

This variance is related to one above and is recognising the full contract cost with Dimension Data to delivery our ICT infrastructure.

NZTA funding associated with the one off access to LED street light funding for 2017/18 makes up the majority of this variance.

Capex carry forwards funded from depreciation collected in prior years.  This is a result of the 2017/18 Capital programme being affected by prior year budgets being delivered in 2017/18 and some of the budgets in this Funding Impact Statement potentially being delivered in 2018/19.

1.1 GOVERNANCE, INFORMATION AND ENGAGEMENT

 2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
17,528
18,122
594

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

Subsidies and grants for operating purposes
-
-
-

Fees and charges
889
536
(353)
1

Internal charges and overheads recovered
-
-
-

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

Total operating funding (A)
18,417
18,658
241

Applications of operating funding

Payments to staff and suppliers
11,170
11,265
95

Finance costs
16
15
(1)

Internal charges and overheads applied
7,179
7,309
130

Other operating funding applications
10
10
-

Total applications of operating funding (B)
18,375
18,599
224

Surplus (deficit) of operating funding (A - B)
42
59
17

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
74
(59)
(133)

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
74
(59)
(133)

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
-
-
-

- to replace existing assets
116
-
(116)

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
116
-
(116)

Surplus (deficit) of capital funding (C - D)
(42)
(59)
(17)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
42
59
17

Notes:

The revenue cost recovery for elections conducted on behalf of other local athorities and boards, for example Greater Wellington Regional Council and Capital and Coast Health Board is not present in 2017/18.

1.2 MĀORI AND MANA WHENUA PARTNERSHIPS

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
295
300
5

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)
295
300
5

Applications of operating funding
-
-
-

Payments to staff and suppliers
267
272
5

Finance costs
1
1
-

Internal charges and overheads applied
15
15
-

Other operating funding applications
10
10
-

Total applications of operating funding (B)
293
298
5

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

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
33,822
35,994
2,172

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

Subsidies and grants for operating purposes
636
671
35

Fees and charges
1,465
1,825
360
1

Internal charges and overheads recovered
5,203
5,287
84

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

Total operating funding (A)
41,126
43,777
2,651

Applications of operating funding

Payments to staff and suppliers
19,718
20,806
1,088
2

Finance costs
1,984
2,443
459

Internal charges and overheads applied
12,410
13,528
1,118

Other operating funding applications
100
115
15

Total applications of operating funding (B)
34,212
36,892
2,680

Surplus (deficit) of operating funding (A - B)
6,914
6,886
(29)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
183
183
-

Increase (decrease) in debt
(3,426)
(2,932)
495

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
(3,243)
(2,749)
495

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
1,959
50
(1,909)
3

- to replace existing assets
1,712
4,087
2,375
3

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
3,671
4,137
466

Surplus (deficit) of capital funding (C - D)
(6,914)
(6,886)
29

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

Expenses for this activity grouping include the following depreciation/amortisation charge
7,264
7,058
(206)

Notes:

This is a transfer of the Waterfront public space management revenue from activity statement 10.1 Organisational (page 78).

This variance has a few components - $200k for the demolition of the Kilbirnie Bowls club will and additional costs of $200k for the implementation of Living Wage to increase to $20.20 to staff and the associated relativity along with other inflationary increases.

Major investment in the Lyall Bay resilience programme - stage two will be implemented in 2017/18, which will involve relocating the surfers corner carpark and implementing some erosion preventing measures.

2.2 WASTE REDUCTION AND ENERGY CONSERVATION

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
778
982
204

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

Subsidies and grants for operating purposes
-
-
-

Fees and charges
13,320
13,632
312
1

Internal charges and overheads recovered
-
-
-

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

Total operating funding (A)
14,098
14,614
516

Applications of operating funding

Payments to staff and suppliers
12,492
12,786
294
2

Finance costs
751
665
(86)

Internal charges and overheads applied
78
544
466
3

Other operating funding applications
383
210
(173)

Total applications of operating funding (B)
13,704
14,205
501

Surplus (deficit) of operating funding (A - B)
394
409
15

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
344
1,662
1,318

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
344
1,662
1,318

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
65
-
(65)

- to replace existing assets
673
2,071
1,398
4

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
738
2,071
1,333

Surplus (deficit) of capital funding (C - D)
(394)
(409)
(15)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
394
409
15

Notes:

This variance is driven out of additional revenue for waste operations.

Inflationary changes associated with the running of waste operations, which includes the southern landfill, domestic recycling and other waste reducing activities.

Organisational overheads change from year to year. There has been an increase to this activity due to a change in methodology which shows a truer cost of delivering our services.

$1.4m additional spend associated with the purchase of additional carbon credits. This is a two fold variance, reflected both in increased volumes and an increased price of the carbon credits.

2.3 WATER

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
-
-
-

Targeted rates (other than a targeted rate for water supply)
40,257
41,713
1,456

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)
40,292
41,748
1,456

Applications of operating funding

Payments to staff and suppliers
23,369
24,257
888
1

Finance costs
2,104
2,039
(65)

Internal charges and overheads applied
1,952
1,912
(40)

Other operating funding applications
-
-
-

Total applications of operating funding (B)
27,425
28,208
783

Surplus (deficit) of operating funding (A - B)
12,867
13,540
673

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
671
671
-

Increase (decrease) in debt
1,377
1,319
(58)

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
2,048
1,990
(58)

Applications of capital funding

Capital expenditure

- to meet additional demand
538
501
(37)

- to improve the level of service
3,375
4,747
1,372
2

- to replace existing assets
11,002
10,282
(720)
2

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
14,915
15,530
615

Surplus (deficit) of capital funding (C - D)
(12,867)
(13,540)
(673)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
12,867
13,540
673

Notes:

This variance is driven by increases to the bulk water charges from Greater Wellington Regional Council (GWRC) up $460k and property rates up $170k.

Major investment in the city’s resilience will include implementing the Prince of Wales 35 million litre reservoir. $2.1m will be budgeted in 2017/18 with further investment over the three years of the project.

2.4 WASTEWATER

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
-
-
-

Targeted rates (other than a targeted rate for water supply)
39,112
39,540
428

Subsidies and grants for operating purposes
-
-
-

Fees and charges
1,244
1,293
49

Internal charges and overheads recovered
-
-
-

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

Total operating funding (A)
40,356
40,833
477

Applications of operating funding

Payments to staff and suppliers
20,623
21,123
500
1

Finance costs
3,833
3,427
(406)

Internal charges and overheads applied
5,254
5,166
(88)

Other operating funding applications
-
-
-

Total applications of operating funding (B)
29,710
29,716
6

Surplus (deficit) of operating funding (A - B)
10,646
11,117
471

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
549
549
-

Increase (decrease) in debt
40
3,826
3,786

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
589
4,375
3,786

Applications of capital funding

Capital expenditure

- to meet additional demand
228
375
147

- to improve the level of service
316
2,801
2,485
2

- to replace existing assets
10,691
12,316
1,625
2

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
11,235
15,492
4,257

Surplus (deficit) of capital funding (C - D)
(10,646)
(11,117)
(471)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
13,887
14,470
583

Notes:

A reduction in wastewater treatment plant running costs of $500k has been reprioritised to network maintenance of $340k. The remaining difference is driven by increases to property rates $400k and general inflationary changes.

Investment in the wastewater network including increased capacity for projects on Taranaki Street of $4.2m, Dixon Street of $800k and the Karori western treatment plant outfall pipeline upgrade of $830k.

2.5 STORMWATER

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
-
-
-

Targeted rates (other than a targeted rate for water supply)
18,012
17,986
(26)

Subsidies and grants for operating purposes
125
131
6

Fees and charges
10
10
-

Internal charges and overheads recovered
-
-
-

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

Total operating funding (A)
18,147
18,127
(20)

Applications of operating funding

Payments to staff and suppliers
7,018
6,993
(25)

Finance costs
2,890
2,707
(183)

Internal charges and overheads applied
2,000
1,938
(62)

Other operating funding applications
-
-
-

Total applications of operating funding (B)
11,908
11,638
(270)

Surplus (deficit) of operating funding (A - B)
6,239
6,489
250

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
58
58
-

Increase (decrease) in debt
723
874
151

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
781
932
151

Applications of capital funding

Capital expenditure

- to meet additional demand
237
236
(1)

- to improve the level of service
4,550
4,524
(26)

- to replace existing assets
2,233
2,661
428
1

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
7,020
7,421
401

Surplus (deficit) of capital funding (C - D)
(6,239)
(6,489)
(250)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
6,239
6,489
250

Notes:

A stormwater upgrade of $2.2m is being carried out in Kilbirnie. Stage 1 to be completed in 2017/18 is the detailed design and construction of the pipeline.

2.6 CONSERVATION ATTRACTIONS

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
6,989
6,970
(19)

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)
6,989
6,970
(19)

Applications of operating funding

Payments to staff and suppliers
216
187
(29)

Finance costs
787
721
(66)

Internal charges and overheads applied
275
-
(275)

Other operating funding applications
3,919
4,303
384

Total applications of operating funding (B)
5,197
5,211
14

Surplus (deficit) of operating funding (A - B)
1,792
1,759
(33)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
(975)
(918)
57

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
(975)
(918)
57

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
-
-
-

- to replace existing assets
817
841
24

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
817
841
24

Surplus (deficit) of capital funding (C - D)
(1,792)
(1,759)
33

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

Expenses for this activity grouping include the following depreciation/amortisation charge
1,792
1,759
(33)

3.1 CITY PROMOTIONS AND BUSINESS SUPPORT

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
4,377
4,982
605

Targeted rates (other than a targeted rate for water supply)
14,713
15,253
540

Subsidies and grants for operating purposes
1,051
2,090
1,039
1

Fees and charges
14,369
13,587
(782)
2

Internal charges and overheads recovered
-
-
-

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

Total operating funding (A)
34,510
35,912
1,402

Applications of operating funding

Payments to staff and suppliers
21,216
18,870
(2,346)
3

Finance costs
1,565
1,771
206

Internal charges and overheads applied
754
1,230
476

Other operating funding applications
16,763
20,013
3,250
3

Total applications of operating funding (B)
40,298
41,884
1,586

Surplus (deficit) of operating funding (A - B)
(5,788)
(5,972)
(184)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
12,799
10,988
(1,811)

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
12,799
10,988
(1,811)

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
5,252
2,777
(2,475)
4

- to replace existing assets
1,759
2,239
480
4

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
7,011
5,016
(1,995)

Surplus (deficit) of capital funding (C - D)
5,788
5,972
184

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

Expenses for this activity grouping include the following depreciation/amortisation charge
1,787
1,628
(159)

Notes:

Increased internal grants for the Wellington Convention Centre project, which is planned to commence construction in 2017/18.

Shifting Convention Centre grants from Fees and Charges to Subsidies and Grants for operating purposes offset by increases to Wellington Convention Centre and Venues revenue increase.

Recoding the $3m City Growth Fund from Payments to staff and suppliers to Other operating funding applications.

There has been a delay to the Convention Centre project, this project is now planned to commence in 2017/18 utilising previous years underspends and 2017/18 budget.

4.1 ARTS AND CULTURE ACTIVITIES

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
14,090
14,272
182

Targeted rates (other than a targeted rate for water supply)
5,540
5,599
59

Subsidies and grants for operating purposes
494
924
430
1

Fees and charges
588
599
11

Internal charges and overheads recovered
-
-
-

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

Total operating funding (A)
20,712
21,394
682

Applications of operating funding

Payments to staff and suppliers
4,723
5,195
472
2

Finance costs
368
260
(108)

Internal charges and overheads applied
1,180
1,208
28

Other operating funding applications
13,607
14,030
423
2

Total applications of operating funding (B)
19,878
20,693
815

Surplus (deficit) of operating funding (A - B)
834
701
(133)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
8,440
557
(7,883)

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
8,440
557
(7,883)

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
9,272
1,247
(8,025)
3

- to replace existing assets
2
11
9

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
9,274
1,258
(8,016)

Surplus (deficit) of capital funding (C - D)
(834)
(701)
133

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

Expenses for this activity grouping include the following depreciation/amortisation charge
834
867
33

Notes:

Additional funding of $500k for a major winter cultural event has been offset by grants and revenue to make it rates neutral.

Increased funding of $170k for the Royal New Zealand Ballet for temporary accommodation at Te Whaea while the St James Theatre is earthquake strengthened as well as $250k additional funding for the Wellington Museums Trust to help with inflation and Living Wage increases.

There has been a delay to the Movie Museum project, this project is now planned to commence in 2017/18 utilising previous years underspends and 2017/18 budget.

5.1 RECREATION PROMOTION AND SUPPORT

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
25,994
27,963
1,969

Targeted rates (other than a targeted rate for water supply)
1,107
1,325
218

Subsidies and grants for operating purposes
204
187
(17)

Fees and charges
11,599
11,523
(76)

Internal charges and overheads recovered
1,136
1,192
56

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

Total operating funding (A)
40,040
42,190
2,150

Applications of operating funding

Payments to staff and suppliers
18,870
19,955
1,085
1

Finance costs
3,795
3,330
(465)

Internal charges and overheads applied
9,058
10,336
1,278

Other operating funding applications
678
696
18

Total applications of operating funding (B)
32,401
34,317
1,916

Surplus (deficit) of operating funding (A - B)
7,639
7,873
234

Sources of capital funding

Subsidies and grants for capital expenditure
-
50
50

Development and financial contributions
-
-
-

Increase (decrease) in debt
(822)
672
1,494

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
(822)
722
1,544

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
2,541
2,502
(39)

- to replace existing assets
4,276
6,093
1,817
2

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
6,817
8,595
1,778

Surplus (deficit) of capital funding (C - D)
(7,639)
(7,873)
(234)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
7,639
7,873
234

Notes:

There has been a $500k increase to the cost to running our swimming pools, as well as a $480k increase for the implementation of the Living Wage incresase to $20.20 to staff and the associated relativity.

$4.5m for the refresh of the RA Vance stand at the Basin Reserve along with $2.2m for the renewal and upgrade of the Karori swimming pool in 2017/18, plus $530k for playground renewals, including the new Wakefield Park Playground.

5.2 COMMUNITY SUPPORT

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
24,737
24,653
(84)

Targeted rates (other than a targeted rate for water supply)
4,457
4,624
167

Subsidies and grants for operating purposes
934
937
3

Fees and charges
19,432
24,042
4,610
1

Internal charges and overheads recovered
1,125
917
(208)

Local authorities fuel tax, fines, infringement fees, and other receipts
547
516
(31)

Total operating funding (A)
51,232
55,689
4,457

Applications of operating funding

Payments to staff and suppliers
26,236
26,821
585
2

Finance costs
(1,600)
(1,983)
(383)

Internal charges and overheads applied
12,967
11,592
(1,375)

Other operating funding applications
4,632
4,902
270
3

Total applications of operating funding (B)
42,235
41,332
(903)

Surplus (deficit) of operating funding (A - B)
8,997
14,357
5,360

Sources of capital funding

Subsidies and grants for capital expenditure
18,082
11,790
(6,292)

Development and financial contributions
-
-
-

Increase (decrease) in debt
24,647
(397)
(25,044)

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
42,729
11,393
(31,336)

Applications of capital funding

Capital expenditure

- to meet additional demand
919
694
(225)

- to improve the level of service
25,706
7,641
(18,065)
4

- to replace existing assets
7,019
5,625
(1,394)
4

Increase (decrease) in reserves
18,082
11,790
(6,292)

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
51,726
25,750
(25,976)

Surplus (deficit) of capital funding (C - D)
(8,997)
(14,357)
(5,360)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
15,504
17,259
1,755

Notes:

Additional revenue for City Housing - the revenue from the City Housing will change year to year while the Housing Upgrade programme is being completed and stock comes on and offline.

This variance is driven out of $290k additional costs for the implementation of the Living Wage increase to $20.20, the associated relativity and an increase in property rates of $220k.

This variance is a result of a $750k one off grant to Toitu Poneke for a sports hub at Kilbirnie park in 2016/17 and a $870k one off grant for the Karori Events Centre in 2017/18.

The large reduction in capital expenditure is associated with the reduction in spend for both the Arlington City Housing stage two and for the Johnsonville Library upgrade, both of these projects will look to utilise underspends from prior years to complete the required work in 2017/18.

5.3 PUBLIC HEALTH AND SAFETY

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
10,099
11,765
1,666

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

Subsidies and grants for operating purposes
-
-
-

Fees and charges
4,082
4,151
69

Internal charges and overheads recovered
676
687
11

Local authorities fuel tax, fines, infringement fees, and other receipts
39
39
-

Total operating funding (A)
14,896
16,642
1,746

Applications of operating funding

Payments to staff and suppliers
9,011
9,917
906
1

Finance costs
93
128
35

Internal charges and overheads applied
4,988
5,767
779

Other operating funding applications
109
54
(55)

Total applications of operating funding (B)
14,201
15,866
1,665

Surplus (deficit) of operating funding (A - B)
695
776
81

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
1,315
1,354
39

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
1,315
1,354
39

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
739
44
(695)
2

- to replace existing assets
1,271
2,086
815
2

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
2,010
2,130
120

Surplus (deficit) of capital funding (C - D)
(695)
(776)
(81)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
695
776
81

Notes:

Additional funding of $350k for the Wellington Regional Emergency Management Office has been included in the 2017/18 Annual Plan as well as $240k of additional costs to deliver on the changes brought about by the Food Act 2014 which were implemented in the 2016/17 Annual Plan.

Variance driven out of changes to the facilities management contract and changes to the facilities renewal programme. 

6.1 URBAN PLANNING, HERITAGE AND PUBLIC SPACES DEVELOPMENT

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
7,622
7,632
10

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

Subsidies and grants for operating purposes
-
-
-

Fees and charges
20
21
1

Internal charges and overheads recovered
408
42
(366)

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

Total operating funding (A)
8,050
7,695
(355)

Applications of operating funding

Payments to staff and suppliers
4,524
4,137
(387)
1

Finance costs
14
14
-

Internal charges and overheads applied
2,201
2,483
282

Other operating funding applications
1,300
1,050
(250)
2

Total applications of operating funding (B)
8,039
7,684
(355)

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
7,942
141
(7,801)

Gross proceeds from sales of assets
2,600
3,250
650

Lump sum contributions
-
-
-

Total sources of capital funding (C)
10,542
3,391
(7,151)

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
9,349
1,683
(7,666)
3

- to replace existing assets
1,204
1,719
515
3

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
10,553
3,402
(7,151)

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:

Reduction as a result of planning work for Te Aro regeneration and Kent and Cambridge Terraces along with an increases to the Urban Activation Fund were all included in 2016/17 these increases will not be ongoing into 2017/18.

Built Heritage Incentive Grant was increased to a higher level in 2016/17. This increase was not carried into 2017/18, however an underspend in this fund in 2016/17 may be utilised in 2017/18.

Projects including Lombard Lane, Site 10 public space (Waterfront),  funding for Cable Car Lane and Karori town centre upgrade were all planned for 2016/17, Garrett/Swan Lane,  Lukes Lane and the Plimmer Steps are planned for upgrade in 2017/18.

6.2 BUILDING AND DEVELOPMENT CONTROL

2017/18
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
8,685
8,705
20

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

Subsidies and grants for operating purposes
-
-
-

Fees and charges
11,942
12,922
980
1

Internal charges and overheads recovered
342
-
(342)

Local authorities fuel tax, fines, infringement fees, and other receipts
24
24
-

Total operating funding (A)
20,993
21,651
658

Applications of operating funding

Payments to staff and suppliers
12,481
13,254
773
1

Finance costs
3
3
-

Internal charges and overheads applied
8,224
8,114
(110)

Other operating funding applications
135
135
-

Total applications of operating funding (B)
20,843
21,506
663

Surplus (deficit) of operating funding (A - B)
150
145
(5)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
2,891
17,227
14,336

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
2,891
17,227
14,336

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
3,041
17,372
14,331
2

- to replace existing assets
-
-
-

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
3,041
17,372
14,331

Surplus (deficit) of capital funding (C - D)
(150)
(145)
5

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

Expenses for this activity grouping include the following depreciation/amortisation charge
150
145
(5)

Notes:

There have been changes that have resulted in increased cost and revenue in the Building Control and Facilitiation (building consents), these are mainly driven by providing consenting service to Auckland Council and changes to the Swimming Pool act requiring more inspections.

Resilience projects commencing in 2017/18 included the Earthquake strengthening of the Town Hall $13.4m and St James Theatre $500k, both of these projects will be utilising underspends from prior years.

7.1 TRANSPORT

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
35,761
37,626
1,865

Targeted rates (other than a targeted rate for water supply)
33
95
62

Subsidies and grants for operating purposes
4,442
4,576
134

Fees and charges
1,960
1,996
36

Internal charges and overheads recovered
-
-
-

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

Total operating funding (A)
42,196
44,293
2,097

Applications of operating funding

Payments to staff and suppliers
13,409
13,842
433
1

Finance costs
5,288
5,232
(56)

Internal charges and overheads applied
7,106
6,742
(364)

Other operating funding applications
1,260
260
(1,000)
2

Total applications of operating funding (B)
27,063
26,076
(987)

Surplus (deficit) of operating funding (A - B)
15,133
18,217
3,084

Sources of capital funding

Subsidies and grants for capital expenditure
14,868
34,473
19,605

Development and financial contributions
539
539
-

Increase (decrease) in debt
10,017
6,721
(3,296)

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
25,424
41,733
16,309

Applications of capital funding

Capital expenditure

- to meet additional demand
-
4
4

- to improve the level of service
15,602
18,793
3,191
3

- to replace existing assets
24,955
41,153
16,198
3

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
40,557
59,950
19,393

Surplus (deficit) of capital funding (C - D)
(15,133)
(18,217)
(3,084)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
24,453
26,600
2,147

Notes:

Additional costs associated with the Road Maintenance and Street Lighting activities along with general inflationary increases.

Funding for the Wellington Cable Car was paid out in 2016/17 and this is not an ongoing expenditure item.

NZTA funding associated with the one off access to LED street light funding for 2017/18 makes up the majority of this variance.

7.2 PARKING

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
(14,370)
(14,875)
(505)

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

Subsidies and grants for operating purposes
-
-
-

Fees and charges
20,777
21,385
608
1

Internal charges and overheads recovered
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
7,518
7,334
(184)

Total operating funding (A)
13,925
13,844
(81)

Applications of operating funding

Payments to staff and suppliers
10,765
10,970
205

Finance costs
584
4
(580)

Internal charges and overheads applied
2,523
2,816
293

Other operating funding applications
1
1
-

Total applications of operating funding (B)
13,873
13,791
(82)

Surplus (deficit) of operating funding (A - B)
52
53
1

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
444
244
(200)

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
444
244
(200)

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
496
113
(383)
2

- to replace existing assets
-
184
184

Increase (decrease) in reserves
-
-
-

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
496
297
(199)

Surplus (deficit) of capital funding (C - D)
(52)
(53)
(1)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
52
53
1

Notes:

Increased revenue is a result of the new central city parking zone, updating parking fees from $4.00 per hour to $4.50 per hour. This has been implemented to reduce pressure on these prime parking locations.

The finalisation of the parking sensors roll out was completed in 2016/17 and this project does not continue into 2017/18.

10.1 ORGANISATIONAL

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

Sources of operating funding

General rates, uniform annual general charges, rates penalties
(15,494)
(14,420)
1,074

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

Subsidies and grants for operating purposes
200
85
(115)

Fees and charges
32,564
37,740
5,176
1

Internal charges and overheads recovered
33,829
31,528
(2,301)

Local authorities fuel tax, fines, infringement fees, and other receipts
1,050
1,050
-

Total operating funding (A)
52,149
55,983
3,834

Applications of operating funding

Payments to staff and suppliers
75,809
81,951
6,142
2

Finance costs
3,141
4,643
1,502

Internal charges and overheads applied
(35,445)
(41,047)
(5,602)

Other operating funding applications
100
100
-

Total applications of operating funding (B)
43,605
45,647
2,042

Surplus (deficit) of operating funding (A - B)
8,544
10,336
1,792

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
5,435
46,767
41,332

Gross proceeds from sales of assets
2,000
7,100
5,100
3

Lump sum contributions
-
-
-

Total sources of capital funding (C)
7,435
53,867
46,432

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
4,861
15,151
10,290
4

- to replace existing assets
24,006
9,849
(14,157)
4

Increase (decrease) in reserves
(12,888)
39,203
52,091

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
15,979
64,203
48,224

Surplus (deficit) of capital funding (C - D)
(8,544)
(10,336)
(1,792)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
8,363
7,419
(944)

Notes:

The majority of this variance is the recognition of 3rd party revenue related to the contract with Dimension Data to delivery our ICT infrastructure.

This variance is related to one above and is recognising the full contract cost with Dimension Data to delivery our ICT infrastructure.

Proceeds from the sale of assets includes Civic Campus asset sales to partially fund the earthquake strengthening of the Town Hall.

Investment in the Civic Campus refresh continues in 2017/18 along with a number of commercial property renewals.

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 city-wide revaluation was carried out as at 1 September 2015. This revaluation remains effective for the 2017/18 rating year, except where subsequent maintenance valuations have been required under valuation rules or the Council’s rating policies.

City-wide revaluations are performed every three years. The next city-wide 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 2017/18.

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 Local Government (rating) Act 2002 (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 Local Government (rating) Act 2002 (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.

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.

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 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 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) that 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 rateable capital value of any capital value over $1,000,000.

Tawa Business Improvement District targeted rate

This rate is set by the Council to fund the Business Improvement District activities of the Tawa Business Network. The rate is set on all commercially rated properties in the Tawa Business Improvement District area (see map) that are subject to the “commercial, industrial and business” differential, but excluding any rating unit that is not connected to a service.

Liability for this rate will be calculated as a fixed amount per rating unit, plus a rate per dollar of rateable capital value for any capital value over $350,000 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 2017/18 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

$
2017/18 Rates

$
Increase
over
2016/17
%*

Capital
Values

$
2017/18
Rates

$
Increase
over
2016/17
%*

Capital
Values

$
2017/18
Rates

$
Increase
over
2016/17
%*

200,000
1,156
3.05%

1,000,000
10,291
3.73%

1,000,000
12,418
3.49%

300,000
1,588
3.14%

1,250,000
12,829
3.73%

1,250,000
15,488
3.49%

400,000
2,019
3.19%

1,500,000
15,367
3.73%

1,500,000
18,558
3.49%

500,000
2,451
3.23%

1,750,000
17,906
3.73%

1,750,000
21,628
3.49%

600,000
2,882
3.25%

2,000,000
20,444
3.73%

2,000,000
24,698
3.49%

700,000
3,314
3.27%

2,250,000
22,982
3.73%

2,250,000
27,768
3.49%

800,000
3,745
3.28%

2,500,000
25,520
3.73%

2,500,000
30,838
3.49%

900,000
4,176
3.29%

2,750,000
28,058
3.73%

2,750,000
33,908
3.49%

1,000,000
4,608
3.30%

3,000,000
30,596
3.73%

3,000,000
36,978
3.49%

1,100,000
5,039
3.31%

3,250,000
33,134
3.73%

3,250,000
40,048
3.49%

1,200,000
5,471
3.31%

3,500,000
35,672
3.73%

3,500,000
43,118
3.49%

1,300,000
5,902
3.32%

3,750,000
38,210
3.73%

3,750,000
46,188
3.49%

1,400,000
6,334
3.32%

4,000,000
40,749
3.73%

4,000,000
49,258
3.49%

1,500,000
6,765
3.33%

4,250,000
43,287
3.73%

4,250,000
52,328
3.49%

1,600,000
7,197
3.33%

4,500,000
45,825
3.73%

4,500,000
55,398
3.49%

1,700,000
7,628
3.33%

4,750,000
48,363
3.73%

4,750,000
58,467
3.49%

1,800,000
8,060
3.34%

5,000,000
50,901
3.73%

5,000,000
61,537
3.49%

*This is the indicative percentage rates increase, taking into account average increases in property valuations for the relevant billing category.

2017/18 Funding Impact Statement – 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
$39,804,777,000
¢0.234013
$93,148,353

Commercial, Industrial & Business
Capital Value
Commercial, industrial & business use
$11,650,092,000
¢0.655222
$76,333,966

TOTAL

$169,482,319

Sewerage targeted rate
Base (Residential)
Fixed amount / rating unit
Base differential use per connection status
68042 properties
$106.60
$7,253,277

Capital Value
Base differential use per connection status
$42,278,651,000
¢0.042899
$18,137,118

Commercial, Industrial & Business
Capital Value
Commercial, industrial and business use per connection status
$9,820,082,000
¢0.144092
$14,149,953

TOTAL

$39,540,348

Water targeted rate
Base (Residential)
(without water meter)
Fixed amount / rating unit
Base differential use per connection status without a water meter
59989 properties
$148.38
$8,901,175

Capital Value
Base differential use per connection status without a water meter
$34,420,954,000
¢0.044964
$15,477,038

Base (Residential)
(with water meter)
Consumption unit charge
Base differential use per connection status with a water meter
n/a
$2.064 / m³
$570,302

Fixed amount / rating unit
Base differential use per connection status with a water meter
n/a
$120.60
$79,596

Commercial, Industrial & Business
(without water meter)
Capital Value
Commercial, industrial and business use per connection status without a water meter
$650,873,000
¢0.402076
$2,617,004

Commercial, Industrial & Business
(with water meter)
Consumption unit charge
Commercial, industrial and business use per connection status with a water meter
n/a
$2.064 / m³
$13,687,243

Fixed amount / rating unit
Commercial, industrial and business use per connection status with a water meter
n/a
$120.60
$381,217

TOTAL

$41,713,574

Stormwater targeted rate
Base (Residential excluding rural)
Capital Value
Base differential use (excluding rural)
$39,264,223,000
¢0.035501
$13,939,192

Commercial, Industrial & Business (excluding rural)
Capital Value
Commercial, industrial and business use (excluding rural)
$10,124,299,000
¢0.039973
$4,046,986

TOTAL

$17,986,178

Base sector targeted rate
Base (Residential)
Capital Value
Residential use
$39,741,312,000
¢0.017818
$7,081,107

Commercial sector targeted rate
Commercial, Industrial & Business
Capital Value
Commercial, industrial & business use
$11,620,092,000
¢0.043537
$5,059,039

Downtown targeted rate
Commercial, Industrial & Business
Capital Value
Commercial, industrial & business use located in the downtown area
$7,769,469,000
¢0.184980
$14,371,964

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
$33,467

Marsden Village targeted rate
Commercial, Industrial & Business
Capital Value
Commercial, industrial & business use located in Marsden shopping village area
$11,895,000
¢0.121538
$14,457

Khandallah Business Improvement District targeted rate
Commercial, Industrial & Business
Capital Value
Commercial, industrial & business use located in the Khandallah Business Improvement District area
$12,235,000
¢0.163465
$20,000

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
$53,000

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
$82,070,000
¢0.032899
$27,000

TOTAL

$80,000

Tawa Business Improvement District targeted rate
Commercial, Industrial & Business
Fixed amount / rating unit
Commercial, industrial & business use located in the Tawa Business Improvement District area
72 properties
$520.00
$37,440

Capital Value over $350,000 per rating unit
Commercial, industrial & business use located in the Tawa Business Improvement District area for all capital value over $350,000 CV per rating unit
$75,540,000
¢0.076198
$57,560

TOTAL

$95,000

Miramar Business Improvement District targeted rate
Commercial, Industrial & Business
Fixed amount / rating unit
Commercial, industrial & business use located in the Miramar Business Improvement District area
125 properties
$365.00
$45,625

Capital Value over $1,000,000 per rating unit
Commercial, industrial & business use located in the Miramar Business Improvement District area for all capital value over $1,000,000 CV per rating unit
$93,420,000
¢0.036796
$34,375

TOTAL

$80,000

TOTAL RATES REQUIREMENT (excluding GST)

$295,557,453

Note:

When rates for 2017/18 are assessed, GST will be applied to the final rates. The total rates requirement includes rates remissions of 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.

Rates Remission and Postponement Policies

A rates remission up to a maximum of $5,000 (including GST) is being proposed to be offered to property owners who build their first home in Wellington. The objective of this remission is to assist first home builders and promote the supply of housing in Wellington city. The policy for this remission is included below. Refer to the Council Rates Remission Policy for all other rates remissions.

(Note: the Rates Remission Policy was adopted by Council as part of the 2015-25 Long-term Plan and will be amended as part of the 2017/18 Annual Plan)

Rates Remission Policy for First Home Builders:

REMISSION STATEMENT

The Council may grant a rate remission on a new residential dwelling (including apartments) on a separate rating unit, where construction is completed after 01 July 2017 within the boundaries of Wellington City Council.

The remission will be up to a maximum of $5,000 (including GST). To qualify for this remission, the property owner must be:

a New Zealand Permanent Resident or citizen,

this will be their first home,

and the home must be a new build

The earliest the remission can be applied for is after a building code compliance certificate has been issued by the Council for the rating unit. The remission will end once the $5,000 (including GST) has been remitted or when the rating unit is sold (whichever is the sooner).

The remission shall apply to all Wellington City Council rates assessed on the rating unit. Note that Greater Wellington Regional Council rates will still apply.

Applications must be received prior to the commencement of the rating year the remission is being applied for (1 July).

POLICY OBJECTIVE

The objective of this remission policy is to assist new first home builders and promote the supply of housing in Wellington city.

CONDITIONS AND CRITERIA

A remission of rates may apply under the following conditions and criteria:

I. the new residential dwelling must be within the Wellington City Council boundary
II. the new residential dwelling must be on a separate rating unit
III. the property owner(s) must be a New Zealand Permanent Resident or citizen and provide evidence of this
IV. the property must be the first home owned by the applicant
V. the property must be a new residential dwelling (including apartments)
VI. the property owner intends to use the property as their primary residence
VII. the property must be either built for the first owner or purchased within six months of construction
VIII. the property owner must provide evidence that they own the property
IX. application can be made by the ratepayer after a building code compliance certificate has been issued by the Council for the rating unit.
X. the remission will not be available retrospectively for residential dwellings (including apartments) that are already completed before 1 July 2017
XI. once granted, the remission will apply for a set period; commencing from the start of the following rating year and ending when the total amount of Wellington City Council rates remitted on the property reaches the $5,000 (including GST) limit or when the rating unit is sold (whichever is the sooner)
XII. Trusts, businesses and companies are not eligible for the remission

APPLYING FOR A RATES REMISSION

All applications must be in writing and set out the reasons for the request using the Wellington City Council ‘Application for Remission’ form.

Each remission application is applicable to a single rating year, except the Remission of Rates for Buildings Removed from the Earthquake Prone Buildings List, the Remission for New Greenfield Developments and the Remission for First Home Builders, which may apply to multiple rating years.

Applications must be received prior to the commencement of the rating year the remission is being applied for (1 July), with the exception of the following remission applications which may be received after the start of a rating year:

I. the Special Circumstances Remission,
II. the Metered Water Rates Remission,
III. the Remission of Rates for Buildings Removed from the Earthquake Prone Buildings List,
IV. and the Remission for New Greenfield Developments.

No applications will be backdated beyond the current rating year.

All applications for a remission on a rating unit that has previously received a remission or remissions, must be re-submitted annually for consideration of further remissions prior to the commencement of the rating year (1 July), with the exception of the Remission of Rates for Buildings Removed from the Earthquake Prone Buildings List, the Remission for New Greenfield Developments and the Remission for First Home Builders

The determination of eligibility and approval of any remission is at the absolute discretion of the Wellington City Council or its delegated officer.

Applications made for a remission will be considered on their own merits and any previous decisions of the Council will not be regarded as creating a precedent or expectations.

Rates Postponement Policy:

There are no changes to the rates postponement policy.

Financial statements

PROSPECTIVE STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE

2016/17
AP
$000s
2017/18
AP
$000s
Variance to
AP
$000s
Notes

INCOME

Revenue from rates
284,138
296,806
12,668

Revenue from development contributions
2,000
2,000
-

Revenue from grants, subsidies and reimbursements
41,037
55,913
14,876
1

Revenue from operating activities
121,965
130,702
8,737
2

Investments
20,447
22,454
2,007

Fair value movement on investment property revalaution
3,989
3,058
(931)

Other revenue
1,050
1,050
-

Finance revenue
650
704
54

TOTAL INCOME
475,276
512,687
37,411

EXPENSE

Finance expense
25,617
25,420
(197)

Expenditure on operating activities
334,923
348,489
13,566
3

Depreciation and amortisation
101,975
106,417
4,442

TOTAL EXPENSE
462,515
480,326
17,811

NET SURPLUS FOR THE YEAR
12,761
32,361
19,600

OTHER COMPREHENSIVE INCOME

Fair value movement - property, plant and equipment - net
106,241
122,876
16,635

Share of equity accounted surplus from associates
-
-
-

TOTAL OTHER COMPREHENSIVE INCOME
106,241
122,876
16,635

TOTAL COMPREHENSIVE INCOME FOR THE YEAR
119,002
155,237
36,235

Notes:

NZTA funding associated with the one off access to LED street light funding for 2017/18 makes up the majority of this variance.

The majority of this variance is the recognition of 3rd party revenue related to the contract with Dimension Data to delivery our ICT infrastructure.

This variance is related to two above and is recognisng the full contract cost with Dimension Data to delivery our ICT infrastructure.

4. EXPLANATION OF SURPLUS | Variance to AP $000's
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 | (7,598)
General | (82)
Moa Point sewerage treatment plant | (3,146)
Decommissioned Living Earth joint venture plant | (207)
Wellington Waterfront Limited Depreciation | (3,156)
TOTAL DEPRECIATION NOT FUNDED BY RATES | (14,189)
REVENUE RECEIVED FOR CAPITAL PURPOSES: |
Funding received from external parties for major capital expenditure projects |
NZTA capital funding | 30,573
Housing ring-fenced surplus | (2,657)
Housing capital grant | 11,790
Development contributions | 2,000
Bequests, trust and other external funding | 3,950
TOTAL REVENUE RECEIVED FOR CAPITAL PURPOSES | 45,656
ITEMS FUNDED FROM PRIOR YEAR SURPLUSES: |
City Growth Fund | (3,000)
Resilience Team additional year funding | (300)
Earthquake emergency rental costs | (782)
Business transformation team one year costs | (500)
Westapac Stadium Grant delay | (436)
Ballet temporary accomodation | (166)
TOTAL ITEMS FUNDED FROM PRIOR YEAR SURPLUSES | (5,184)
ADDITIONAL OPERATIONAL EXPENDITURE ITEMS: |
Operational expenditure items identified as equitable to be funded through other funding mechanisms |
Alex Moore Park | (245)
Cable car | 125
Odyssey - related | 221
Roading | 130
Toitu Poneke | 80
Weathertight Homes funding | 7,227
Westpac Stadium | (4,164)
Reserves purchases and development fund | (24)
Welly Moving project spend | (1,040)
Kilbirnie Bowling club demolition | (173)
Technology Infrastructure and Software | 231
Unrealised fair value adjustment for loans and receivables | 650
Fair value movement on investment property revaluation | 3,058
TOTAL ADDITIONAL ITEMS | 6,078
TOTAL SURPLUS | 32,361

PROSPECTIVE STATEMENT OF FINANCIAL POSITION

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

ASSETS

Current assets

Cash and cash equivalents
1,714
1,144
(570)

Derivative financial assets
-
-
-

Receivables and recoverables
42,834
48,542
5,708

Prepayments
13,433
13,414
(19)

Inventories
906
932
26

Total current assets
58,887
64,032
5,145

Non-current assets

Other financial assets
11,954
17,016
5,062

Intangibles
28,578
28,306
(272)

Investment properties
213,931
221,512
7,581

Property, plant & equipment
6,771,399
7,004,869
233,470

Investment in subsidiaries
5,071
5,071
-

Investment in associates
19,465
19,465
-

Total non-current assets
7,050,398
7,296,239
245,841

TOTAL ASSETS
7,109,285
7,360,271
250,986

LIABILITIES

Current liabilities

Derivative financial liabilities
-
-
-

Trade and other payables
62,477
62,060
(417)

Revenue in advance
16,717
13,132
(3,585)

Borrowings
267,279
269,984
2,705

Employee benefit liabilities and provisions
7,180
7,807
627

Provision for other liabilities
7,972
12,028
4,056

Total current liabilities
361,625
365,011
3,386

Non-current liabilities

Derivative financial liabilities
-
-
-

Trade and other payables
630
630
-

Borrowings
211,766
258,167
46,401

Employee benefit liabilities
1,593
1,467
(126)

Provisions for other liabilities
18,231
28,110
9,879

Total non-current liabilities
232,220
288,374
56,154

TOTAL LIABILITIES
593,845
653,385
59,539

EQUITY

Accumulated funds and retained earnings
5,011,091
5,077,829
66,738

Revaluation reserves
1,489,442
1,611,454
122,012

Hedging reserve
-
-
-

Fair value through other comprehensive income reserve
106
1,648
1,542

Restricted funds
14,801
15,955
1,154

TOTAL EQUITY
6,515,440
6,706,886
191,446

TOTAL EQUITY AND LIABILITIES
7,109,285
7,360,271
250,985

PROSPECTIVE STATEMENT OF CHANGES IN EQUITY

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

EQUITY – OPENING BALANCES

Accumulated funds and retained earnings
4,999,468
5,046,221
46,753

Revaluation reserves
1,383,201
1,488,578
105,377

Hedging reserve
-
-
-

Fair value through other comprehensive income reserve
106
1,648
1,542

Restricted funds
13,663
15,202
1,539

TOTAL EQUITY - Opening balance
6,396,438
6,551,649
155,211

CHANGES IN EQUITY

Retained earnings

Net surplusfor the year
12,761
32,361
19,600

Transfer to restricted funds
(4,518)
(4,518)
-

Transfer from restricted funds
3,380
3,765
385

Revaluation reserves

Fair value movement - property, plant and equipment - net
106,241
122,876
16,635

Hedging reserve

Share of other comprehensive income
-
-
-

Restricted Funds

Transfer to retained earnings
(3,380)
(3,765)
(385)

Transfer from retained earnings
4,518
4,518
-

TOTAL COMPREHENSIVE INCOME
119,002
155,237
36,235

EQUITY - CLOSING BALANCES

Accumulated funds and retained earnings
5,011,091
5,077,829
66,738

Revaluation reserves
1,489,442
1,611,454
122,012

Hedging reserve
0
0
-

Fair value through other comprehensive revenue and expense
106
1,648
1,542

Restricted funds
14,801
15,955
1,154

TOTAL EQUITY - Closing balance
6,515,440
6,706,886
191,446

PROSPECTIVE STATEMENT OF CASH FLOWS

2016/17
AP
$000
2017/18
AP
$000
Variance to
AP
$000
Notes

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from rates - Council
292,828
278,112
(14,716)

Receipts from rates - Greater Wellington Regional Council
56,838
60,573
3,735
1

Receipts from activities and other income
100,082
140,506
40,424
2

Receipts from grants and subsidies - operating
33,017
9,600
(23,417)

Receipts from grants and subsidies - capital
8,020
46,313
38,293

Receipts from investment property lease rentals
9,335
11,214
1,879

Cash paid to suppliers and employees
(298,973)
(317,801)
(18,828)

Rates paid to Greater Wellington Regional Council
(56,838)
(60,573)
(3,735)
1

Grants paid
(42,672)
(45,651)
(2,979)

NET CASH FLOWS FROM OPERATING ACTIVITIES
101,637
122,293
20,656

CASH FLOWS FROM INVESTING ACTIVITIES

Dividends received
11,112
11,240
128

Interest received
650
704
54

Proceeds from sale of property, plant and equipment
4,600
10,350
5,750

Purchase of Intangibles
(5,102)
(8,162)
(3,060)
3

Purchase of property, plant and equipment
(165,583)
(187,584)
(22,001)

NET CASH FLOWS FROM INVESTING ACTIVITIES
(154,323)
(173,452)
(19,129)

CASH FLOWS FROM FINANCING ACTIVITIES

New borrowings
298,783
313,020
14,237

Repayment of borrowings
(227,516)
(224,977)
2,539

Interest paid on borrowings
(26,690)
(26,863)
(173)

NET CASH FLOWS FROM FINANCING ACTIVITIES
44,577
61,180
16,603

Net increase/(decrease) in cash and cash equivalents
(8,109)
10,021
18,130

Cash and cash equivalents at beginning of year
9,823
(8,877)
(18,700)

CASH AND CASH EQUIVALENTS AT END OF YEAR
1,714
1,144
(570)

Notes:

Wellington City Council collects rates on behalf of Greater Wellington Regional Council (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
2017/18
$000
DEPOSITS

$000
EXPENDITURE

$000
CLOSING BALANCE
2017/18
$000
Purpose

SPECIAL RESERVES AND FUNDS

Reserve purchase and development fund
782
0
0
782
Used to purchase and develop reserve areas within the city.

Economic initiatives development fund
3,876
3,000
(3,000)
3,876

Insurance reserve
4,500
10,000
(4,500)
10,000
Allows the Council to meet the uninsured portion of insurance claims

Total special reserves and funds
9,158
13,000
(7,500)
14,658

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
15
1
-
16
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
21
1
-
22
For the purchase of books on the Commonwealth

Schola Cantorum Trust
8
-
-
8
For the purchase of musical scores

Terawhiti Grant
10
-
-
10
To be used on library book purchases

Wellington Beautifying Society Bequest
14
-
-
14
To be used on library book purchases

Total trusts and bequests
428
18
(15)
431

Total restricted funds
9,586
13,018
(7,515)
15,089

Summary of accounting policies

The following indicative financial statements show the 2017/18 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 (i.e. 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 (e.g. 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 (e.g. traffic and parking infringements, library overdue book fines, rates penalties) is recognised when infringement notices are issued or when the fines/penalties are otherwise imposed.

Sale of goods

The sale of goods is classified as exchange revenue. Sale of goods is recognised when products are sold to the customer and all risks and rewards of ownership have transferred to the customer.

Investment revenues

Dividends

Dividends from equity investments, other than those accounted for using equity accounting, are classified as exchange revenue and are recognised when the Council’s right to receive payment has been established.

Investment property lease rentals

Lease rentals (net of any incentives given) are classified as exchange revenue and recognised on a straight line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which benefits derived from the leased asset is diminished.

Other revenue

Donated, subsidised or vested assets

Where a physical asset is acquired for nil or nominal consideration, with no conditions attached, the fair value of the asset received is recognised as non-exchange revenue when the control of the asset is transferred to the Council.

Gains

Gains include additional earnings on the disposal of property, plant and equipment and movements in the fair value of financial assets and liabilities.

Finance revenue

Interest

Interest revenue is exchange revenue and recognised using the effective interest rate method.

Donated services

The Council benefits from the voluntary service of many Wellingtonians in the delivery of its activities and services (e.g. beach cleaning and Otari-Wilton’s Bush guiding and planting). Due to the difficulty in determining the precise value of these donated services with sufficient reliability, donated services are not recognised in these financial statements.

Expenses

Specific accounting policies for major categories of expenditure are outlined below:

Operating activities

Grants and sponsorships

Expenditure is classified as a grant or sponsorship if it results in a transfer of resources (e.g. 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 ASSESTS CLASSFIED 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 (e.g. 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 (e.g. 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, and 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:

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 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

Operating project and programmes

Activity Area
Activity Area Name
Activity Grouping
Activity Grouping Name
Activity Component
Activity Component Name
AP Activity
Activity/ LTP Project Name
Income/ Expense
2017/18
$000

1
Governance
1.1
Governance, information and engagement
1.1.1
City Governance and Engagement
1000
Annual Planning
Expense

1001
Policy
Expense
1,271

1002
Committee & Council Process
Expense
6,978

Income
(13)

1003
Strategic Planning
Expense
992

1004
Tawa Comm Brd - Discretionary
Expense
11

1005
Smart Capital - Marketing
Expense
548

City Governance and Engagement Total

11,312

1.1.2
Civic Information
1007
WCC City Service Centre
Expense
933

Income
(121)

1008
Call Centre SLA
Expense
2,504

Income
(12)

1009
Valuation Services Contract
Expense
737

Income
(228)

1010
Lands Information
Expense
1,176

Civic Information Total

4,988

1.1.3
City Archives
1011
Archives
Expense
1,985

Income
(162)

City Archives Total

1,824

Governance, information and engagement Total

18,123

1.2
Māori and Mana Whenua partnerships
1.2.1
Māori and mana whenua partnerships
1012
Funding agreements - Māori
Expense
196

1013
Māori Engagement
Expense
104

Māori and mana whenua partnerships Total

300

Māori and Mana Whenua partnerships Total

300

Governance Total

18,423

2
Environment
2.1
Gardens, beaches and green open spaces
2.1.1
Local Parks and Open Spaces
1014
Parks and Reserves Planning
Expense
787

1015
Reserves Unplanned Maintenance
Expense
187

1016
Turf Management
Expense
1,344

Income
(8)

1017
Park Furniture and Infrastructure Maintenance
Expense
1,676

1018
Parks and Buildings Maint
Expense
2,090

Income
(185)

1019
Horticultural Operations
Expense
2,074

Income
(31)

1020
Arboricultural Operations
Expense
1,492

Income
(184)

Local Parks and Open Spaces Total

9,241

2.1.2
Botanical Gardens
1021
Botanic Gardens Services
Expense
5,118

Income
(401)

Botanical Gardens Total

4,717

2.1.3
Beaches and Coast Operations
1022
Coastal Operations
Expense
1,128

Income
(53)

Beaches and Coast Operations Total

1,075

2.1.4
Roads open spaces
1024
Road Corridor Growth Control
Expense
1,253

Income
(349)

1025
Street Cleaning
Expense
7,696

Income
(318)

Roads open spaces Total

8,282

2.1.5
Town belts
1026
Hazardous Trees Removal
Expense
483

Income
(6)

1027
Town Belts Planting
Expense
924

1028
Townbelt-Reserves Management
Expense
3,472

Income
(253)

Town belts Total

4,619

2.1.6
Community environmental initiatives
1030
Community greening initiatives
Expense
565

1031
Environmental Grants Pool
Expense
100

Community environmental initiatives Total

665

2.1.7
Walkways
1032
Walkway Maintenance
Expense
662

Walkways Total

662

2.1.8
Biodiversity (pest management)
1033
Weeds & Hazardous Trees Monit
Expense
924

Income
(81)

1034
Animal Pest Management
Expense
1,207

Biodiversity (pest management) Total

2,050

2.1.9
Waterfront Public Space
1035
Waterfront Public Space Management
Expense
5,481

Income
(626)

Waterfront Public Space Total

4,855

Gardens, beaches and green open spaces Total

36,167

2.2
Waste reduction and energy conservation
2.2.1
Waste minimisation, disposal and recycling management
1036
Landfill Operations & Maint
Expense
4,007

Income
(5,555)

1037
Suburban Refuse Collection
Expense
3,032

Income
(3,470)

1038
Domestic Recycling
Expense
5,136

Income
(3,647)

1039
Waste Minimisation Info
Expense
1,776

Income
(900)

1040
Litter Enforcement
Expense
92

Waste minimisation, disposal and recycling management Total

470

2.2.2
Closed landfills aftercare
1041
Closed Landfill Gas Migr Monit
Expense
319

Closed landfills aftercare Total

319

2.2.3
Energy efficiency and conservation
1042
Smart Energy
Expense
253

Income
(60)

Energy efficiency and conservation Total

193

Waste reduction and energy conservation Total

982

2.3
Water
2.3.1
Water Network
1043
Water - Meter Reading
Expense
154

1044
Water - Network Maintenance
Expense
4,266

1045
Water - Water Connections
Income
(35)

1046
Water - Pump Stations Maintenance-Ops
Expense
1,024

1047
Water - Asset Stewardship
Expense
18,357

1048
Water - Reservoir-Dam Maintenance
Expense
271

1049
Water - Monitoring & Investigation
Expense
561

1050
Water - Asset Management
Expense
718

Water Network Total

25,317

2.3.2
Water Collection and Treatment
1051
Water - Bulk Water Purchase
Expense
16,396

Water Collection and Treatment Total

16,396

Water Total

41,713

2.4
Wastewater
2.4.1
Sewage collection and disposal network
1052
Wastewater - Asset Stewardship
Expense
14,517

Income
(661)

1053
Wastewater - Trade Waste Monitoring & Investigation
Expense
292

1055
Wastewater - Network Maintenance
Expense
2,767

1057
Wastewater - Asset Management
Expense
781

1058
Wastewater - Monitoring & Investigation
Expense
1,573

1059
Wastewater - Pump Station Maintenance-Ops
Expense
1,338

Sewage collection and disposal network Total

20,608

2.4.2
Sewage treatment
1060
Wastewater - Treatment Plants
Expense
20,979

1062
Sewerage Disposal
Expense
1,938

Income
(632)

Sewage treatment Total

22,285

Wastewater Total

42,893

2.5
Stormwater
2.5.1
Stormwater management
1063
Stormwater - Asset Stewardship
Expense
13,049

1064
Stormwater - Network Maintenance
Expense
2,261

1065
Stormwater - Monitoring & Investigation
Expense
799

Income
(10)

1066
Stormwater - Asset Management
Expense
896

1067
Drainage Maintenance
Expense
1,079

Income
(131)

1068
Stormwater - Pump Station Maintenance-Ops
Expense
43

Stormwater management Total

17,986

Stormwater Total

17,986

2.6
Conservation attractions
2.6.1
Conservation visitor attractions
1069
Karori Sanctuary
Expense
1,814

1070
Wellington Zoo Trust
Expense
5,156

Conservation visitor attractions Total

6,970

Conservation attractions Total

6,970

Environment Total

146,711

3
Economic Development
3.1
City promotions and business support
3.1.1
Wellington Region Economic Development Agency (WREDA) & Venues
1073
Positively Wellington Tourism
Expense
5,630

1074
Events Fund
Expense
4,523

1075
Wellington Venues
Expense
18,244

Income
(14,360)

1076
Destination Wellington
Expense
1,775

1077
City Innovation
Expense
1,045

WREDA & Venues Total

16,857

3.1.2
Wellington Convention Centre
1078
Wellington Convention Centre
Expense
943

Income
(943)

Wellingotn Convention Centre Total

(0)

3.1.3
Retail support (free weekend parking)
1079
CBD Weekend Parking
Expense
1,476

Retail support (free weekend parking) Total

1,476

3.1.4
City Growth Fund & Economic Grants
1080
Economic Development Grant Pool
Expense
50

1081
Economic Growth Strategy
Expense
383

1082
City Growth Fund
Expense
3,000

City Growth Fund & Economic Grants Total

3,433

3.1.5
Major Projects
1085
Film Museum
Expense
373

Income
(373)

1086
Westpac Stadium
Expense
5,000

Major Projects Total

5,000

3.1.6
International Relations
1087
International Relations
Expense
778

International Relations Total

778

3.1.7
Business Improvement Districts
1088
Marsden Village
Expense
14

1089
Business Improvement Districts
Expense
277

Business Improvement Districts Total

291

City promotions and business support Total

27,835

Economic Development Total

27,835

4
Cultural Wellbeing
4.1
Arts and Cultural Activities
4.1.1
Galleries and museums (Wellington Museums Trust)
1090
Wellington Museums Trust
Expense
9,162

1091
Museum of Conflict
Expense
500

Galleries and museums (Wellington Museums Trust) Total

9,662

4.1.2
Visitor attractions (Te Papa/Carter Observatory)
1092
Te Papa Funding
Expense
2,250

1093
Carter Observatory
Expense
681

Visitor attractions (Te Papa/Carter Observatory) Total

2,931

4.1.3
Arts and cultural festivals
1095
Community Events Programme
Expense
3,577

Income
(924)

1097
Citizen's Day - Mayoral Day
Expense
22

Arts and cultural festivals Total

2,675

4.1.4
Cultural grants
1098
Cultural Grants Pool
Expense
1,132

Cultural grants Total

1,132

4.1.5
Access and support for community arts
1099
Wgtn Conv Cntr Comm Subsidy
Expense
200

1100
Community Arts Programme
Expense
590

Income
(64)

Access and support for community arts Total

726

4.1.6
Arts partnerships
1101
New Zealand Symphony Orchestra (NZSO) Subsidy
Expense
216

1102
Toi Poneke Arts Centre
Expense
1,439

Income
(535)

1103
Public Art Fund
Expense
459

1104
New Zealand Ballet
Expense
412

1105
Orchestra Wellington
Expense
279

Arts partnerships Total

2,271

4.1.7
Regional Amenities Fund
1106
Regional Amenities Fund
Expense
641

Regional Amenities Fund Total

641

Arts and Cultural Activities Total

20,037

Cultural Wellbeing Total

20,037

Activity Area
Activity Area Name
Activity Grouping
Activity Grouping Name
Activity Component
Activity Component Name
AP Activity
Activity/ LTP Project Name
Income/ Expense
2017/18
$000

5
Social and Recreation
5.1
Recreation promotion and support
5.1.1
Swimming Pools
1107
Swimming Pools Operations
Expense
22,427

Income
(7,338)

Swimming Pools Total

15,089

5.1.2
Sportsfields
1108
Sportsfields Operations
Expense
3,566

Income
(306)

Sportsfields Total

3,259

5.1.3
Sportsfields (Synthetic)
1109
Synthetic Turf Sport Operations
Expense
1,601

Income
(619)

Sportsfields (Synthetic) Total

982

5.1.4
Recreation Centres
1110
Recreation Centres
Expense
2,934

Income
(780)

1111
ASB Sports Centre
Expense
7,094

Income
(1,961)

Recreation Centres Total

7,288

5.1.5
Recreation partnerships
1112
Basin Reserve Trust
Expense
1,278

1113
Recreational NZ Academy Sport
Expense
47

Recreation partnerships Total

1,325

5.1.6
Playgrounds
1114
PlayGnd & Skate Facility Mtnc
Expense
837

Playgrounds Total

837

5.1.7
Marinas
1115
Marina Operations
Expense
641

Income
(618)

Marinas Total

23

5.1.8
Golf Course
1116
Municipal Golf Course
Expense
248

Income
(72)

Golf Course Total

176

5.1.9
Recreation programmes
1117
Recreation Programmes
Expense
324

Income
(16)

Recreation programmes Total

308

Recreation promotion and support Total

29,288

5.2
Community support
5.2.1
Libraries
1118
Library Network - Wide Operation
Expense
15,424

Income
(806)

1119
Branch Libraries
Expense
6,317

Income
(611)

Libraries Total

20,324

5.2.2
Access Support
1120
Passport to Leisure Programme
Expense
119

Access Support Total

119

5.2.3
Community Advocacy
1121
Community Advice & Information
Expense
1,469

Community Advocacy Total

1,469

5.2.4
Grants (Social and Recreation)
1122
Community Grants
Expense
1,088

1123
Support for Wgtn Homeless
Expense
198

1124
Social & Recreational Grant Pool
Expense
3,171

Grants (Social and Recreation) Total

4,456

5.2.5
Housing
1125
Housing Operations and Mtce
Expense
24,792

Income
(22,870)

1126
Housing Upgrade Project
Expense
1,671

Income
(12,727)

Housing Total

(9,133)

5.2.6
Community centres and halls
1127
Cmty Props Programmed Maint
Expense
565

Income
(4)

1128
Community Halls Ops and Maint.
Expense
590

Income
(46)

1129
Community Prop & Facility Ops
Expense
1,934

Income
(221)

1130
Accommodation Assistance Fund
Expense
337

Community centres and halls Total

3,155

Community support Total

20,390

5.3
Public health and safety
5.3.1
Burials and Cremations
1131
Burial & Cremation Operations
Expense
1,843

Income
(833)

Burials and Cremations Total

1,010

5.3.2
Public Toilets
1132
Contracts - Public Conveniences
Expense
3,131

Public Toilets Total

3,131

5.3.3
Public Health Regulations
1133
Public Health
Expense
5,250

Income
(3,339)

1134
Noise Monitoring
Expense
717

Public Health Regulations Total

2,627

5.3.4
City Safety
1135
Anti-Graffiti Flying Squad
Expense
721

1136
Safe City Project Operations
Expense
2,432

City Safety Total

3,153

5.3.5
Wellington Regional Emergency Management Office
1137
Civil Defence
Expense
1,628

Income
(14)

1138
Rural Fire
Expense
234

Income
(4)

Wellington Regional Emergency Management Office Total

1,844

Public health and safety Total

11,765

Social and Recreation Total

61,443

6
Urban Development
6.1
Urban planning, heritage and public spaces development
6.1.1
Urban Planning and Policy
1139
District Plan
Expense
1,936

Income
(21)

Urban Planning and Policy Total

1,915

6.1.2
Waterfront development
1141
City Shaper Developments
Expense
1,564

Waterfront development Total

1,564

6.1.3
Public spaces and centres development
1142
Public Art and Sculpture Maintenance
Expense
371

1143
Public Space-Centre Devl. Plan
Expense
2,037

Public spaces and centres development Total

2,408

6.1.4
Built heritage development
1145
City Heritage Development
Expense
1,745

Built heritage development Total

1,745

Urban planning, heritage and public spaces development Total

7,632

6.2
Building and development control
6.2.1
Building Control and Facilitation
1146
Building Control-Facilitation
Expense
13,073

Income
(9,846)

1147
Weathertight Homes
Expense
976

Building Control and Facilitation Total

4,203

6.2.2
Development Control and Facilitation
1148
Development Cntrl-Facilitation
Expense
6,213

Income
(3,100)

Development Control and Facilitation Total

3,113

6.2.3
Earthquake risk mitigation - built environment
1151
Earthquake Risk Building Proj.
Expense
1,389

Earthquake risk mitigation - built environment Total

1,389

Building and development control Total

8,705

Urban Development Total

16,337

7
Transport
7.1
Transport
7.1.1
Transport Planning
1152
Ngauranga to Airport Corridor
Expense
1,565

Income
-

1153
Transport Planning and Policy
Expense
1,039

Income
-

Transport Planning Total

2,605

7.1.2
Vehicle network
1154
Road Maintenance and Storm Clean Up
Expense
1,778

Income
(758)

1155
Tawa Shared Driveways Maintenance
Expense
35

1156
Wall, Bridge and Tunnel Maintenance
Expense
280

Income
(88)

1157
Drains & Walls Asset Stewardship
Expense
6,603

Income
(33)

1158
Kerb & Channel Maintenance
Expense
837

Income
(372)

1159
Vehicle Network Asset Stewardship
Expense
15,506

Income
(200)

1160
Port and Ferry Access
Expense
94

Vehicle network Total

23,682

7.1.3
Cycle network
1161
Cycleways Maintenance
Expense
157

Income
(70)

1162
Cycleway Asset Stewardship
Expense
593

1163
Cycleways Planning
Expense
1,052

Cycle network Total

1,732

7.1.4
Passenger transport network
1164
Passenger Transport Facilities
Expense
603

Income
(286)

1165
Bus Shelter Contract Income
Expense
5

Income
(580)

1166
Passenger Transport Asset Stewardship
Expense
717

1167
Bus Priority Plan
Expense
87

1168
Cable Car
Expense
6

1169
Public Transport Trials
Expense
-

Passenger transport network Total

551

7.1.5
Pedestrian network
1170
Street Furniture Maintenance
Expense
444

Income
(6)

1171
Footpaths Asset Stewardship
Expense
5,954

1172
Pedestrian Network Maintenance
Expense
898

Income
(34)

1173
Pedestrian Network Structures Maintenance
Expense
172

Pedestrian network Total

7,428

7.1.6
Network-wide control and management
1174
Traffic Signals Maintenance
Expense
1,402

Income
(621)

1175
Traffic Control Asset Stewardship
Expense
3,009

Income
(78)

1176
Road Marking Maintenance
Expense
1,320

Income
(580)

1177
Traffic Signs Maintenance
Expense
587

Income
(217)

1178
Network Activity Management
Expense
1,425

Income
(911)

Network-wide control and management Total

5,337

7.1.7
Road safety
1179
Street Lighting Maintenance
Expense
3,133

Income
(1,390)

1180
Transport Education & Promotion
Expense
773

Income
(236)

1181
Fences & Guardrails Maintenance
Expense
411

Income
(111)

1182
Safety Asset Stewardship
Expense
2,186

1183
Travel Demand Management Programme
Expense
-

Road safety Total

4,767

Transport Total

46,102

7.2
Parking
7.2.1
Parking
1184
Parking Services & Enforcement
Expense
13,635

Income
(28,107)

1185
Waterfront Parking Services
Expense
209

Income
(612)

Parking Total

(14,875)

Parking Total

(14,875)

Transport Total

31,227

Activity Area
Activity Area Name
Activity Grouping
Activity Grouping Name
Activity Component
Activity Component Name
AP Activity
Activity/ LTP Project Name
Income/ Expense
2017/18
$000

10
Council
10.1
Organisational Projects
10.1.1
Organisational
1186
Waterfront Commercial Property Services
Expense
3,654

Income
(2,450)

1187
Commercial Property Man & Serv
Expense
4,403

Income
(2,589)

1190
Information Services SLA
Expense
(0)

Income
-

1191
NZTA Income on Capex Work
Expense
-

Income
(30,573)

1193
Self Insurance Reserve
Expense
1,500

1196
External Capital Funding
Expense
-

Income
(3,900)

1197
Plimmer Bequest Project Expend
Expense
-

Income
(50)

1198
Waterfront Utilities Management
Expense
511

Income
(389)

1199
Civic Project Funding
Expense
-

Income
(5,100)

1200
Organisation
Expense
11,249

Income
(320,256)

1202
Civic Centre Facilities Managt
Expense
220

Income
(220)

1204
Sustainable Parking Infrastructure
Expense
-

Income
150

Organisational Total

(343,790)

Organisational Projects Total

(343,790)

Council Total

(343,790)

Grand Total

(21,775,457)

Capital projects and programmes

Activity Area
Activity Area Name
Activity Grouping
Activity Grouping Name
Activity Component
Activity Component Name
AP Activity
Activity/ LTP Project Name
2017/18
$000

2
Environment
2.1
Gardens, beaches and green open spaces
2.1.1
Local Parks and Open Spaces
2003
Parks Infrastructure
487

2004
Parks Buildings
496

2005
Plimmer Bequest Project
50

Local Parks and Open Spaces Total

1,033

2.1.2
Botanical Gardens
2006
Botanic Garden
677

Botanical Gardens Total

677

2.1.3
Beaches and Coast Operations
2007
Coastal - upgrades
1,029

2008
Coastal
126

Beaches and Coast Operations Total

1,155

2.1.5
Town belts
2009
Town Belt & Reserves
228

Town belts Total

228

2.1.7
Walkways
2010
Walkways renewals
1,044

Walkways Total

1,044

Gardens, beaches and green open spaces Total

4,137

2.2
Waste reduction and energy conservation
2.2.1
Waste minimisation, disposal and recycling management
2011
Southern Landfill Improvement
2,071

Waste minimisation, disposal and recycling management Total

2,071

Waste reduction and energy conservation Total

2,071

2.3
Water
2.3.1
Water Network
2013
Water - Network renewals
9,059

2014
Water - Pump Station renewals
577

2015
Water - Water Meter upgrades
447

2016
Water - Network upgrades
1,816

2018
Water - Network renewals
1,102

2019
Water - Reservoir renewals
972

2020
Water - Reservoir upgrades
1,355

2021
Water - Water Meter renewals
201

Water Network Total

15,530

Water Total

15,530

2.4
Wastewater
2.4.1
Sewage collection and disposal network
2023
Wastewater - Network renewals
10,556

2024
Wastewater - Network upgrades
4,036

2026
Wastewater - Pump Station renewals
901

Sewage collection and disposal network Total

15,492

Wastewater Total

15,492

2.5
Stormwater
2.5.1
Stormwater management
2028
Stormwater - Network upgrades
4,057

2029
Stormwater - Network renewals
3,364

Stormwater management Total

7,420

Stormwater Total

7,420

2.6
Conservation attractions
2.6.1
Conservation visitor attractions
2033
Zoo renewals
841

Conservation visitor attractions Total

841

Conservation attractions Total

841

Environment Total

45,491

3
Economic Development
3.1
City promotions and business support
3.1.2
Wellington Convention Centre
2035
Wellington Venues renewals
2,239

2130
City Shaper - Film Museum
2,777

Wellington Convention Centre Total

5,016

City promotions and business support Total

5,016

Economic Development Total

5,016

4
Cultural Wellbeing
4.1
Arts and Cultural Activities
4.1.2
Visitor attractions (Te Papa/Carter Observatory)
2129
City Shaper - Convention Centre
1,223

Visitor attractions (Te Papa/Carter Observatory) Total

1,223

4.1.4
Cultural grants
2041
Te ara o nga tupuna - Māori heritage trails
8

Cultural grants Total

8

4.1.5
Access and support for community arts
2042
Arts Installation
28

Access and support for community arts Total

28

Arts and Cultural Activities Total

1,258

Cultural Wellbeing Total 

1,258

5
Social and Recreation
5.1
Recreation promotion and support
5.1.1
Swimming Pools
2043
Aquatic Facility upgrades
1,000

2044
Aquatic Facility renewals
1,249

Swimming Pools Total

2,249

5.1.2
Sportsfields
2045
Sportsfields upgrades
608

Sportsfields Total

608

5.1.4
Recreation Centres
2048
Recreation Centre Renewal
449

2049
ASB Sports Centre
25

Recreation Centres Total

474

5.1.5
Recreation partnerships
2050
Basin Reserve
4,551

Recreation partnerships Total

4,551

5.1.6
Playgrounds
2051
Playgrounds renewals & upgrades
526

Playgrounds Total

526

5.1.7
Marinas
2052
Evans Bay Marina - Renewals
64

2053
Clyde Quay Marina - Upgrade
122

Marinas Total

186

Recreation promotion and support Total

8,595

5.2
Community support
5.2.1
Libraries
2054
Upgrade Library Materials
2,110

2055
Upgrade Computer Replacement
80

2056
Central Library upgrades
17

2057
Branch Library upgrades
5,183

2058
Branch Libraries renewals
244

Libraries Total

7,633

5.2.5
Housing
2059
Housing upgrades
1,356

2060
Housing renewals
3,841

Housing Total

5,197

5.2.6
Community centres and halls
2061
Community Halls - upgrades & renewals
1,130

Community centres and halls Total

1,130

Community support Total

13,960

5.3
Public health and safety
5.3.1
Burials and Cremations
2062
Burial & Cremations
369

Burials and Cremations Total

369

5.3.2
Public Toilets
2063
Public Convenience and pavilions
1,637

Public Toilets Total

1,637

5.3.4
City Safety
2064
Safety Initiatives
50

City Safety Total

50

5.3.5
Wellington Region Emergency Management Office (WREMO)
2065
Emergency Management renewals
74

WREMO Total

74

Public health and safety Total

2,129

Social and Recreation Total

24,684

6
Urban Development
6.1
Urban planning, heritage and public spaces development
6.1.2
Waterfront development
2067
Wgtn Waterfront Development
325

2068
Waterfront Renewals
1,719

Waterfront development Total

2,044

6.1.3
Public spaces and centres development
2070
Central City Framework
1,217

2074
Minor CBD Enhancements
54

2075
Urban Regeneration Projects
86

Public spaces and centres development Total

1,358

Urban planning, heritage and public spaces development Total

3,401

6.2
Building and development control
6.2.3
Earthquake risk mitigation – built environment
2076
Earthquake Risk Mitigation
17,372

Earthquake risk mitigation – built environment Total

17,372

Building and development control Total

17,372

Urban Development Total

20,774

7
Transport
7.1
Transport
7.1.2
Vehicle network
2077
Wall, Bridge & Tunnel Renewals
3,696

2078
Road Surface Renewals
1,713

2079
Reseals
2,181

2080
Preseal Preparations
2,647

2081
Shape & Camber Correction
3,953

2082
Sumps Flood Mitigation
226

2083
Road Corridor New Walls
1,496

2084
Service Lane Improvements
52

2085
Tunnel & Bridge Improvements
1,855

2086
Kerb & Channel Renewals
2,185

2087
Vehicle Network New Roads
4

2088
Road Risk Mitigation
1,129

2089
Roading Capacity Projects
500

2090
Area Wide Road Maintenance
776

Vehicle network Total

22,414

7.1.3
Cycle network
2094
Cycling Improvements
12,091

Cycle network Total

12,091

7.1.4
Passenger transport network
2095
Bus Priority Planning
1,116

Passenger transport network Total

1,116

7.1.5
Pedestrian network
2096
Pedestrian Network Structures
158

2097
Pedestrian Network Renewals
3,652

2098
Walking Improvements
431

2099
Street Furniture
162

2100
Pedestrian Network Accessways
217

Pedestrian network Total

4,620

7.1.6
Network-wide control and management
2101
Traffic & Street Signs
613

2102
Traffic Signals
779

Network-wide control and management Total

1,392

7.1.7
Road safety
2103
Street Lights
15,923

2104
Rural Road Improvements
105

2105
Minor Works Projects
1,020

2106
Fences & Guardrails
642

2107
Safer Roads Projects
626

Road safety Total

18,315

Transport Total

59,950

7.2
Parking
7.2.1
Parking
2108
Parking Asset renewals
184

2109
Roadside Parking Improvements
113

Parking Total

297

Parking Total

297

Transport Total

60,247

10
Council
10.1
Organisational Projects
10.1.1
Organisational
2111
Capital Replacement Fund
621

2112
Information Management
595

2114
ICT Infrastructure
800

2116
Strategic Initiatives
223

2117
Unscheduled infrastructure renewals
1,075

2118
Health & Safety - Legislation Compliance
122

2119
Civic Property renewals
1,640

2120
Commercial Properties renewals
4,221

2121
Community & Childcare Facility renewals
558

2125
Legislative changes
100

2126
Business Unit Support
479

2127
Office Resilience and Efficiency
6,371

2128
Civic Campus Resilience and Improvements
2,585

2131
Business Transformation
5,610

Organisational Total

25,000

Organisational Projects Total

25,000

Council Total

25,000

Part D: Appendices

Appendix 1: The Mayor and Councillors’ 3-year work programme

Triennium Plan
2016–19

Introduction

After the 2016 local authority elections, the Mayor and Councillors met with the Wellington community and Council stakeholders to identify goals and areas of focus for the next 3 years. The ideas generated at the Wellington Summit led to the Council’s 3-year work programme, which will help Wellington become a more resilient, smarter, people-focussed and sustainable city.

This 3-year work programme also supports the goals and focus areas in the Long-Term Plan 2015-25 (LTP) and will guide the update of the LTP in 2018.

Goal 1: More resilient

We want the city to be more resilient. We want people, communities, institutions and businesses to survive, adapt, and grow no matter what kinds of chronic stresses and acute shocks they experience. For the coming 3 years we have identified three focus areas:

Safer homes, and more robust infrastructure

An economy ready to survive, adapt and thrive

Connected and prepared communities

Focus Area 1: Safer homes, locations and more robust infrastructure

What success looks like in 3 years

Cuba Street, Newtown, Courtenay Place heritage areas have Disaster Management Plans

Unreinforced masonry in public spaces and along strategic routes is addressed

The number of earthquake-prone buildings is reduced

Residential dwellings are assessed and strengthened, unreinforced chimneys are secured or removed, and subfloor structures are secured

Weaknesses in critical infrastructure and lifelines, such as electricity supply, fuel storage, port access and emergency port facilities, are identified and addressed

Wellington’s water network is significantly more resilient, and the city, its communities and households have adequate emergency water supply

Transport infrastructure, including critical routes and all transport modes, are able to withstand major shocks

There is a comprehensive understanding of the economic impacts of an infrastructure outage

The Wellington Earthquake National Initial Response Plan is jointly planned with central and local government, and is widely understood and socialised

The District Plan adequately accounts for natural hazards

What we already deliver

We already undertake a range of activities to make buildings and infrastructure in the city more resilient. This work includes:

assessing earthquake-prone buildings and working with owners on strengthening them

strengthening city infrastructure (eg the water network, water reservoirs, and retaining walls above and below roads)

managing and upgrading the “three waters” network to make them more resilient to earthquakes and more frequent weather events, which includes flooding protection work and adaptation planning (eg encouraging uptake of water-sensitive urban design principles)

earthquake strengthening Council buildings and facilities

working with other councils in the region and network operators (eg Lifelines Group) to identify vulnerabilities in the region and develop responses, adaptations or resolutions.

Note: For more information on our response to climate change and approach to “greening Wellington’s growth”, see Section 4 – More sustainable.

New proposals and areas of focus for 2016-2019

Unreinforced masonry

We will provide funding support of $1m in 2016/17 to strengthen unreinforced masonry, facades and parapets in public spaces in the city and along strategic routes. Central Government has also earmarked $2m for Wellington for this initiative.

The $1m of funding has been allocated from the Built Heritage Incentive Fund.

Prince of Wales Reservoir

We will speed up the delivery of Prince of Wales Reservoir. Consents will be launched in the coming months with construction expected to start in 2018.

As Wellington’s bulk water supply pipelines cross major earthquake faults, the addition of a large-scale reservoir built to modern seismic standards will provide a secure water source in the event of disruption to normal water supplies.

The Council’s Long-term Plan has $9.4m budgeted (uninflated) for this project. Discussions will continue with the DHB and Central Government around options for funding support for this critical piece of infrastructure.

Funding options will be finalised in 2017 and consents are also expected to be lodged during the year. Construction is expected to start in 2018.

Improved transport network

We will work with Central Government to explore opportunities to bring forward planned transport corridor improvements to enhance the resilience of the region’s transport network (e.g. P2G, Cross Valley Link, Let’s Get Wellington Moving, and Great Harbour Way).

This would essentially result in a re-phasing of existing NZTA and Council capital works. There could be a modest impact as part of the Let’s Get Wellington Moving programme in the next two years, but the majority of the impact is expected to be in 2019 and beyond.

More resilient homes

We will work with Central Government, Earthquake Commission (EQC), Ministry of Business, Innovation and Employment (MBIE) and the insurance industry to explore options for a programme of work to make Wellington’s homes safer and more resilient.

This project is a significant priority for Central Government. Research is being prepared to determine the impact on the resilience of Wellington homes and the results of the research will provide a more detailed picture of out-year costs.

Water resilience plan

Wellington Water is investigating how to improve the resilience of the water supply network. Their water supply resilience project involves developing an investment plan for client councils’ 2018-28 Long-term Plans to ensure water supply networks meet agreed levels of service after a major earthquake. This work will include exploring opportunities for a cross-harbour pipe from the aquifer to Wellington.

Smart Buildings

This initiative aims to deploy sensors in partnership with GNS in buildings throughout Wellington CBD and develop a tool to collate information from the building sensors, GNS ground sensors and our building databases. This will enable us to make instant decisions about the safety and suitability of some of our larger building assets, inform which buildings should be prioritised for inspection/upgrade work, what upgrade work is needed, improve design of new buildings, allowing earlier occupation into buildings post-disaster and, more targeted decision making around buildings and spatial planning of the city.

There will be funding implications from the Smart Building project. Costs and partnership opportunities are still being worked through and more detail will be available in late 2017.

Focus Area 2: An economy ready to survive, adapt, and thrive

What success looks like in 3 years

Increased business continuity planning by small to medium enterprises to allow for businesses to bounce back / recover from shocks and stresses

Businesses are self-sufficient with at least 7 days emergency water and sewage provision

Businesses are easily able to access earthquake recovery and preparedness information

The Council has improved information and intelligence about businesses in the city to inform decision making by local and Central Government during the initial response and recovery phases after major events.

What we already deliver

Our work to support economic development in the city is focussed on providing core infrastructure and support so businesses can grow and create jobs.

Recent events highlighted two important factors that could negatively impact on the city’s economic resilience and the Council’s ability to support businesses after an event.

One: Many businesses do not undertake sufficient business continuity planning (particularly smaller to medium-sized enterprises). This was also evident after the Christchurch earthquakes. Insufficient business continuity planning can negatively impact on the viability of the business or cause it to move to other regions.

Two: The Council currently holds insufficient information about individual businesses in the city to provide rapid support to those caught in a cordon and more broadly to determine the nature and scope of support packages with Central Government.

New proposals and areas of focus for 2016-2019

Business continuity planning

The Council and Wellington Regional Economic Development Agency (WREDA) will work with the Chamber of Commerce and other stakeholders to develop a programme of work to improve the level of business continuity planning by small to medium-sized enterprises in Wellington.

To ensure success, businesses have to own the programme of work. The role of WREDA and the Council will be that of catalyst and facilitator.

Business intelligence

While a lot of data exists about buildings and businesses within Wellington, not all of it is held by the Council. This project will acquire and collate relevant data to build a comprehensive profile of businesses in the city so the Council is in a strong position to support Central Government and businesses after an event.

This project is a data collation and management exercise and it is expected that it can be delivered from within existing 2017/18 budgets.

Focus Area 3: Connected and prepared communities

What success looks like in 3 years

The Quality of Life and Resident Satisfaction surveys show that people are connected to their community, know their neighbour, have access to resources and spaces they need to look after themselves and those in need

Communities and households have the information they need to enable them to make decisions that increase their resilience

Households and communities are prepared – they have the required equipment and provisions to be self-sufficient for at least seven days following an event

There is increased business continuity planning for community and voluntary organisations

A framework for a sustainable food system for Wellington is developed

What we already deliver

We already undertake a range of activities to help communities build resilience. This work includes:

community programmes that connect people such as #wellynextdoor, Neighbours Day Aotearoa and Growing Neighbourhoods

providing community spaces as bases for volunteers where resources can be shared

programmes that focus on building community resilience, developing stronger neighbourhoods and encouraging neighbours to get to know each other.

New proposals and areas of focus for 2016-2019

Resilient communities

Our work in this area will continue over the next 3 years with a specific focus on engaging communities (including cultural communities), and improving the connectedness, preparedness, adaptation and resilience in suburban communities and the central city.

In addition, we will focus on providing tools to the voluntary sector to enhance their resilience and developing the urban agriculture programme to ensure a sustainable food network is developed for Wellington.

Adaptation

We will develop a community engagement and communications plan to guide how we raise awareness of the impacts and cost of climate change (including sea level rise, more intense weather events, and flooding). This will draw on best practice guidelines and prepare communities for the decisions that will need to be made in the development of a Climate Change Adaptation Strategy for Wellington. This strategy will guide District Plan changes and infrastructure investment in the years to come.

Over the next 3 years the focus will be on improving the resilience of Wellington’s south coast to storm surges. These projects are part of the existing Council work programme. Funding of $1m capex has been earmarked for south coast resilience work in 2017/18.

Goal 2: Smarter growth

We want smarter growth in the city. To achieve that we will work with the community and stakeholders to ensure the city develops and grows in ways that is inclusive and meets their aspirations, and two; we will invest to grow the overall economy and support the continued transition towards a thriving knowledge economy.

For the coming 3 years we have identified three focus areas:

Economic and job growth

Housing our people

Designing our city for growth

Focus Area 1: Economic and job growth

What success looks like in 3 years

Wellington has been experiencing strong economic growth and net inward migration. A strong capital programme in Wellington and the wider region in the coming years will mean this trend will continue. A strong economy will increase the cost of construction and this will need to be managed well for Council projects. Housing affordability and increased congestion will also emerge as a result of a successful and growing economy.

Key sectors the Council (in partnership with WREDA) is focussing on to drive growth momentum include: film and screen, ICT/digital/tech, high-value manufacturing, education, research, science and technology, tourism and events, and professional services (including government).

For the economic and job growth focus area, success in 3 years is:

GDP per capita growth of 1.5 percent (assumes population growth of 2 percent p.a. and GDP growth of 3.5 percent p.a.)

above 2.5 percent pa growth in jobs in the city – with a strong focus on knowledge-intensive jobs

an increasingly diversified economy to improve productivity and make more resilient

Wellington’s central city remaining the most productive area of the country

an increase in total visitor numbers, overall spend and length of stay.

What we already deliver

We already undertake a range of activities to support economic and job growth in the city. This work includes:

funding the Wellington Regional Economic Development Agency – which focusses its activities on promoting the city, tourism attraction/promotion, migrant attraction, student attraction, managing the Council’s venues and supporting key growth sector development – to advance the prosperity and liveability of the Wellington region

funding projects, partnerships and programmes that contribute to the economic growth of the city through the City Growth Fund

investing in major infrastructure/facilities necessary for city development, eg the Movie Museum and Convention Centre

delivering free Wi-Fi in the central city

working with communities to establish Business Improvement Districts

supporting WREDA and Westpac Stadium to provide a range of major events, and venues

providing effective core infrastructure.

New proposals and areas of focus for 2016-2019

One-stop-shop consenting

One of our core functions is to regulate land use and development. The process around the consenting can be complex – particularly when the client requires multiple consents from different areas of the Council. In 2017/18 we will introduce a case management approach to make the process easier from a customer perspective. This will be followed by introducing a Development Portal in the following year to coordinate consents for customers.

Business Improvement Districts (BIDs)

BIDs involve a local business community within a defined geographical area developing projects and services that support local economic development. This is then funded through a targeted rate. BIDs – like the one established in Miramar – support the creation of vibrant suburban centres, and bring a community together.

We will work with other communities and support the development of BID areas where there is demonstrable potential and demand by the local community.

Alfresco dining fees

In 2017/18 we will review fees and charges (rather than the regulatory environment) and discount / remove alfresco dining fees.

Tech Hub expansion

In 2017/18 we will evaluate the success of the tech hub and consider which model/s will best meet future demand for connection and collaboration across Wellington’s technology sector.

Opportunities to collaborate with libraries will be considered as part of that. Funding for any expansion will be subject to the results of evaluation.

Economic growth and diversification

Over the next 3 years we will work with WREDA to develop the capability for an increased number of start-ups, explore options to increase eco-tourism, strengthen tertiary to business links, position Wellington as a city laboratory where new services, products and ideas can be trialled.

We will also continue to work with WREDA to support commercialisation of research and develop a major firms’ attraction programme.

Movie Museum and Convention Centre

We will continue to work with stakeholders to deliver the Movie Museum and Convention Centre. This project will be funded through approved budgets.

Indoor arena

We will undertake a feasibility study for an indoor arena in the city to attract a broader range, and larger acts to the city.

Long haul connections

In 2017 the resource consent process of the runway extension project will be progressed, and we will continue work with Singapore Airlines to ensure the success of the route, and explore additional routes/airline opportunities.

Focus Area 2: Housing people

What success looks like in 3 years

1500 new housing units are entering the market per year

There is an increased number of Council-owned social and affordable housing units (750)

The overall number of homeless people is reduced and the number of homeless people successfully housed has increased

Key worker accommodation is available

Rental properties meet quality standards (a rental WOF has been introduced).

What we already deliver

We already undertake range of activities to support housing development and providing housing to those in need. This work includes the following:

District Plan – our Urban Growth Strategy directs urban growth where it will benefit the city most and is supported by a quality transport network. To support greater housing supply we have set up Special Housing Areas and identified areas for medium-density housing development – Newlands and Tawa are under consideration for medium-density development, and Johnsonville and Kilbirnie are in place.

Social housing – we house approximately 4000 people in 2200 social housing units across the city.

Housing upgrade – we are progressively upgrading our housing stock so it is warm and meets modern standards. The current focus is on upgrading the Arlington Apartments.

Te Mahana programme – we work with stakeholders on ending homelessness in Wellington.

New proposals and areas of focus for 2016-2019

Rates remission

In 2017/18 the Council will introduce a rates remission scheme on new residential dwellings/apartments (on a separate rating unit) where construction is completed after 1 July 2017. The objective of this remission policy is to assist new first-home/apartment buyers and expand the supply of housing in Wellington City. The rates remission will be up to a maximum of $5000 (including GST).

Build Wellington

Funding and governance options for establishing Build Wellington to parcel land for development and expedite the delivery of more housing development in the city will be presented to the City Strategy Committee in 2017.

Social housing

The current focus is developing a strategic investment plan that seeks to contribute to the key Council objective of increasing social and affordable housing in Wellington. This will assist in providing a picture of housing supply and demand in Wellington and a clear housing vision, outcomes and investment plan. The overall objective will be to create a financially sustainable business model to increase social and affordable housing provision in the city. This could in turn have financial implications; however, it will be dependent on the nature and scale of any investments decided upon.

Housing Taskforce

We have established a Housing Taskforce made up of the Mayor, Deputy Mayor and relevant external experts to provide advice on how the Council can best support additional housing provision in the city across the spectrum – private, affordable, social and supported living. The Housing Taskforce will use existing resources and inform areas of priority and report back in 2017.

Supported living for people who experience homelessness – Te Whare Oki Oki.

We will develop a business case for a wet house for homeless people who require a supported living environment. The business case will determine key factors including location, delivery mechanism, cost and stakeholders.

Rental Warrant of Fitness

By 2018/19 we will develop a Wellington City housing quality standard framework to support the Council acting on cold, damp, and unsafe housing. Funding will be assigned through existing budgets.

Focus Area 3: Designing our city for growth

What success looks like in 3 years

The Council has developed a holistic plan for the future of central city development

The overall amenity, enjoyment and safety of the central city is improved to cater for a larger and more diverse population living there

Travel to and through the city is easier and safer

Visitors and locals increasingly recognise Wellington as a unique, creative, safe and people-friendly city

Journey times on main routes do not increase with additional population

There is increased uptake of active transport modes (including walking in the central city, for example), public transport, and reduced reliance on private transport

Expanded network of cycleways is being increasingly used as a key/preferred mode of access across the city

Well-developed and maintained lighting for pedestrians

What we already deliver

The guiding principles behind our long-term approach to urban development are to:

keep our city compact, walkable and supported by an efficient transport network

maintain the features that support our high quality of life

protect the city’s natural setting and reduce the environmental impacts of development and transport

make the city more resilient to natural hazards, such as earthquakes, and the effects of climate change

Our work to support these goals is multifaceted and involves: setting and administrating the District Plan; regulating land use and development; protecting places that have citywide character and heritage value; making improvements to the urban fabric of the city to enhance its liveability (e.g. laneways, urban parks); planning for and upgrading town centres

It also involves implementing the cycling network and improvements to infrastructure to encourage walking, as well as working with stakeholders such as NZTA and Greater Wellington Regional Council (GWRC) on roading and public transport improvements – including bus hubs and bus priority measures – in the city and the wider region.

New proposals and areas of focus for 2016-2019

Laneways program

Our laneways programme is targeting locations where we know we can achieve commercial uplift and growth. We want to design them to be places where small businesses and artisan producers locate to provide products and services that are uniquely Wellington. The design of the lanes leverages their character and adds to the tourism experience of being the creative capital. Continued funding for this project will be considered during the next Long-term Plan review.

Transmission Gully

We will work with stakeholders, particularly NZTA, to deliver Transmission Gully during 2020.

Petone to Grenada link

We will work with NZTA on consent processes for this key road project. While this is an NZTA project, there will be funding implications associated with developing link roads to connect to the Petone to Ngauranga road.

Cycling network

The Council’s prioritised 10 to 15-year cycleway programme is as follows:

the Great Harbour Way/Te Ara o Pōneke, including sections along the Hutt Road and from Miramar to Waitangi Park within the next 3 years

the eastern suburbs linking Seatoun, Kilbirnie, and Newtown

the southern suburbs linking to Pukeahu National War Memorial Park

small to medium improvements in other areas

We are aiming to deliver new cycling infrastructure plans across the city in agreement with partners using a place–based approach. Funding for this work has been allocated as part of the existing LTP and through NZTA.

Cost of public transport

We will continue to advocate for affordable public transport, student concession, off–peak fares, and move to a fully electric public transport fleet at the earliest opportunity. This will have no budget implications as it is falls within GWRC budget.

Future Central City programme

The Future Central City programme will plan for population and economic growth in the central city while enhancing pedestrian access, parking and overall attractiveness to residents, businesses and visitors.

Goal 3: People focussed

Although Wellington is a small city by global standards, it has a cosmopolitan culture and its residents are open-minded and outward-looking.

We have a culture that is welcoming and creative, and encourages people to tell their stories and express and celebrate their identities – whether those identities derive from ethnicity, culture, heritage, neighbourhood, belief, artistic or sporting endeavour, or any other source. While there is much to celebrate, there are always improvements that can be made. For the coming 3 years we have identified three areas of focus:

Capital of Culture

Community Planning, facilities and utilisation of space

Clean, green, save and inclusive city

Focus Area 1: Capital of Culture

What success looks like in 3 years

Progress has been made on the Town Hall and Music Hub

The accessibility of medium-sized venues has been improved (incorporating fit-for-purpose and affordability issues)

A dynamic events calendar to liven the city, attract visitors, and strengthen our events reputation has been delivered (will require securing new events, revitalising others, and no longer supporting others)

An engaging and well-attended Te Matatini event in 2019

A new major event has been secured for winter – a traditionally quiet time in the events calendar and for accommodation providers

Increased attendance at major festivals and events e.g. CubaDupa

Movie Museum and Convention Centre has been completed

Increased number of arts and cultural initiatives across the city (e.g. art on buildings, Chinese New Year, Diwali Festival of Lights)

The City’s reputation as a place for great food, coffee, and craft beer is increasingly recognised nationally and internationally

What we already deliver

We already undertake a range of activities to make Wellington the “Capital of Culture”. This work includes:

funding and managing Toi Pōneke to support local artists and deliver the Arts Activation Initiative

delivering major events eg WoW, CupaDupa, Beervana, Wellington on a Plate, and the New Zealand Festival

delivering key Wellington-based festivals and city events eg Christmas festival, New Year celebration, Waitangi Day, Gardens Magic

fostering community art and public art

delivering a range of museum and gallery experiences through Wellington Museums Trust

providing funding support to Te Papa (major visitor attraction)

working alongside Wellington Region Economic Development Agency (WREDA) to promote the city and its culture and events

delivering the Wellington Asia Residency Exchange (WARE) programme and supporting Te Whare Hera and other international artist residency programmes.

New proposals and areas of focus for 2016-2019

Arts and culture sector programmes

We will allocate an additional $500k of funding to develop and implement the new arts and culture sector programme to ensure the city’s “capital of culture” reputation is retained and enhanced. Funding will be allocated to deliver on a range of opportunities including:

developing Matariki Festival as a national festival

capitalising on the Te Matatini National Kapa Haka Festival in Wellington 2019

considering establishing a Wellington’s Arts Trail

delivering the free creative events series to activate the capital

developing an art on buildings lights initiative with local artists.

Toi Pōneke Centre

The current lease term ends August 2020. Options for the future will be prepared for consideration as part of the next long-term plan.

Focus Area 2: Community planning, facilities and utilisation of spaces

What success looks like in 3 years

A place-based approach to community development has been developed and implemented, integrating a co-design participatory approach to local planning and service development reflecting local needs

Increased sport and recreation participation to improve the health and wellbeing of our communities

New and improved options supporting the delivery of community spaces that help volunteers and community groups

Increased utilisation of Council facilities.

What we already deliver

We already undertake a range of activities to increase community planning, utilisation of facilities and development of spaces. This work includes:

providing recreational services including sportsfields, recreation centres, playgrounds, and swimming pools

providing community centres and halls throughout the city

Toi Pōneke creative hub

providing 11 branch libraries and the Central Library

developing a model for delivery of community services and projects that responds to community issues, and supports community-led programmes

encouraging participation in sports, group activities for active and healthy lifestyles.

working with communities to realise their potential through various projects and programmes, eg Newtown community planning and Strathmore 44 rejuvenation project

upgrading Council facilities to ensure they meet community needs, eg maximising Council facilities utilisation, completing Basin Reserve redevelopment, Civic Precinct upgrade and strengthening work, and Johnsonville Library upgrade.

Integrated suburban plans

Develop a community participatory approach to suburban planning to ensure local services and programmes meet local communities, current and local needs are met. The planning and engagement phase can be delivered from within existing funding, however, these processes often result in strong community demand for higher service levels, which will likely have funding implications in future years.

Youth Summit

In 2017/18 we will run a Youth Summit to engage with the city’s youth population and identify their priorities for the city. To ensure there is no impact on rates we will be working with Central Government to fund this initiative.

Swimming pools

We will remove the swimming pool spectator/parent/guardian fee. Removing the fee will support a safe learn-to-swim environment, reduce the barriers to families using Council facilities, and remove the anomaly of parents having to pay to supervise their children while swimming.

Sports hub

Sports hubs allow for greater sharing and use of existing recreation facilities so that they are efficiently used. We will work with sporting codes and local communities to develop sports hubs where appropriate and this will be funded by existing funds allocated in the Long-term Plan.

Community places and spaces

We will capitalise on current approaches (e.g. Johnsonville) as well as explore new ways to provide and support community spaces and places. This could include a model for community dojos and spaces to provide opportunities for volunteers and community groups where resources can be shared. This initiative will be funded from existing budgets and will commence in 2018/19.

Focus Area 3: Clean, green, safe and inclusive city

What success looks like in 3 years

High satisfaction levels with street cleanliness and perceptions of safety across the city are maintained

Reduced alcohol harm in Wellington

On track to deliver a wet house in the city

On track to achieve SmokeFree city status by 2020

We progress towards becoming a UNICEF Child Friendly City

We work with partners to reduce inequality and social deprivation across the city

Accessibility of city streets, buildings and facilities is improved

Local community safety plans are developed with the community

What we already deliver

We already undertake a range of activities to make Wellington an appealing clean, green, safe and inclusive city. This work includes:

maintaining health standards

encouraging activities that make people feel safe

delivering safety (and child friendly) programmes.

Projects and programmes include:

improving community safety, accessibility, appeal and connections (connected communities) through street cleanliness and safety, and making sure people are safe, connected to their communities, know their neighbours and look after those in need

providing City Hosts to support locals and visitors in the city

regulating food and liquor outlets, trade waste and environmental noise

providing the Local Hosts

improving city safety and accessibility with the Eyes-On safety programme, supporting the Eyes Safety and resilience initiative (in partnership with the Police and business community) and the comprehensive management of begging

delivering on Te Mahana through the partnership with Te Whakamura.

New proposals and areas of focus for 2016-2019

Reduce social deprivation/inequality

We will continue to work with communities and our stakeholders throughout the city to advocate for and help the city’s most vulnerable. Our social housing programme, the implementation of the Living Wage and community outreach programmes are all geared towards providing a more inclusive community.

Smokefree Wellington

We will continue to progress the extension of smokefree areas to achieve SmokeFree City status by 2025.

Community driven safety planning

We will develop local community safety plans encompassing community safety in the broadest sense through a community participatory/co-design approach, reflective of the needs and concerns of the local community.

Wellington City has been making progress towards becoming a child and youth-friendly city and finalise accreditation. We will work with young people to document and map issues and develop an action plan to deliver on accreditation guidelines.

Goal 4: More sustainable

Like all cities, we face significant environmental challenges. One of the most important of these is the need to reduce greenhouse gas emissions, but others include, encouraging efficient use of resources such as water and energy, managing pests and promoting biodiversity and continuing to reduce the amount of solid waste the city produces. We’re working hard to respond to these challenges. After all, the environment is the foundation on which Wellington is built. Over the next 3 years we will focus on three key areas of activity:

Our Natural Capital

Waste management and minimisation

Reducing our emissions

Focus Area 1: Our Natural Capital

What success looks like in 3 years

Expanded predator free zones as part of Predator Free Wellington

Enhanced walking and biking trail access in the city, with more promotion to drive utilisation

Improvement in all indicators in the City Biodiversity Index

Completion of the Outer Green Belt Network.

What we already deliver

We already undertake a range of activities under the Our Natural Capital plan to promote the outcomes sought. This involves:

controlling pest species and restoring habitats to ensure rare, threatened or locally significant species can thrive (undertaken through the Our Natural Capital Plan

protecting special areas, protect heritage trees, and manage land use through our regulatory role through the District Plan

funding the Zoo and Zealandia, and work with the Greater Wellington Regional Council (GWRC) and local communities to improve biodiversity throughout the city

working with stakeholders to establish a Marine Exploration Centre on Wellington’s south coast

providing over 300km of tracks throughout the city and are progressing plans with the local mountain bike community to improve Makara Peak Mountain Bike Park and tracks elsewhere in the city in the coming years.

New proposals and areas of focus for 2016-2019

Predator Free Wellington

Deliver Predator Free Wellington in partnership with GWRC, the Next Foundation and local communities. The programme will aim to eradicate possums, rats and mustelids from Wellington City to a point where our native species can survive and populations can expand.

Deliver Our Natural Capital

Over the next 3 years Our Natural Capital will focus on restoring ecologically significant areas, creating buffer zones and raising awareness of issues facing indigenous biodiversity and working with local communities across all our reserves. All initiatives are currently funded through the Our Natural Capital Plan.

Makara Peak Mountain Bike Master Plan

We will work with the local mountain bike community to deliver on the final master plan for the park. This will include new tracks, an improved entrance, additional parking and regional coordination. Any funding implications for the Council will be considered as part of the 2018 Long-term Plan update.

Focus Area 2: Waste management and minimisation

What success looks like in 3 years

Better managed waste volumes to landfill

Reduced household food waste

Solution for sewage sludge to landfill disposal identified

Lower Emission Trading Scheme (ETS) obligations through waste minimisation and gas capture

Increased rates of recycling across the city.

What we already deliver

We already undertake a range of activities under the Waste Management and Minimisation Plan to promote the outcomes sought, including:

Education and information – we work with schools, community groups and the business sector, providing support services, including the Enviroschools programme to organisations that want to explore opportunities for waste reduction.

Grants and community support – we provide grants for community projects to reduce waste, and business development projects to create self-sustaining waste businesses.

Reuse/recycle – we operate Second Treasures shop and industry-based reuse programmes, deliver the domestic kerbside collection, support recycling in schools and ECE centres. We also provide garden waste drop-off and composting facilities, support Kai to Compost, and run the Love Food, Hate Waste programme.

Waste to landfill - we operate kerbside collection for residents, as well as a transfer station and existing operations at the Southern Landfill. We continue to capture landfill gas for energy production and care for closed landfills.

Clean streets - we operate litter bins, street cleaning and enforcement operations necessary to maintain clean streets.

Trade waste - we operate both wastewater treatment plants (and continue minority operations of Porirua Wastewater treatment plant) and strive to reduce the volume of and hazardous component of this waste.

Predator eradication.

New proposals and areas of focus for 2016-2019

Sewage sludge

We will undertake an options assessment for sewage sludge disposal to reduce stress on infrastructure, mitigate future capacity issues, and reduce the Council’s Emission Trading Scheme (ETS) carbon liability.

Reduce waste to landfill

Over the next 3 years we will continue to deliver initiatives to separate and reduce waste at source like Love Food Hate Waste, and continue work to better manage total waste to landfill. (Note: there is a correlation between strong economic growth/development and increased waste.)

We will confirm a new regional Waste Management and Minimisation Plan, look to improve gas capture at the Southern Landfill, increase recycling rates, and investigate the establishment of organic waste collection, public recycling bins, and going plastic bag free.

Focus Area 3: The Low Carbon Capital

What success looks like in 3 years

Lower building and residential emissions

Increased public transport, walking and cycling

Increased EV charging infrastructure across the city

Lower Council organisational emissions

Improved community understanding of the impacts of climate change and sea level rise.

What we already deliver

We already undertake a range of activities under the Low Carbon Capital Plan to promote the outcomes sought, including the three pillars to fulfil the goals of the plan. They are:

greening Wellington’s growth

investigate District Plan changes to support more sustainable growth including phasing out the minimum parking requirement, requiring Electronic Vehicle charging in parking buildings, and more permissive density rules

progressively evaluate programmes like Home Energy Saver, Warm Up Wellington, the Smart Buildings Challenge and the Low Carbon Challenge

Support solar power across the city

Changing the way we move

Support car share and electric vehicle charging

invest in walking, cycling and public transport modes

advocate for lower public transport fares and a fully electric public transport fleet

advocate for greater support for the development of biofuels

leading by example

Continue with Certified Emissions Measurement And Reduction Scheme (CEMARS) certification programme, Carbon Disclosure Project reporting, and Compact of Mayors reporting

Invest in energy savings across the business

Transition Council vehicle fleet to non-fossil fuelled vehicles

Deliver Love Food Hate Waste with national partners

Further implement green practice in the Council’s procurement programme and supply chain

Drive staff behaviour change through an in-house education programme

Develop an implementation plan for the Carbon Management Policy

Improve consideration of climate issues through better evaluation of all policies, investments and actions

New proposals and areas of focus for 2016-2019

Deliver the 2016-18 Low Carbon Capital Plan

Deliver the initiatives highlighted in the “Wellington 2016-18 Low Carbon Capital Plan” namely around the three pillars of greening Wellington’s growth, changing the way we move, and leading by example.

Promote electric vehicle uptake

Primarily through accelerating the installation of electric vehicle charging infrastructure across the city, make it more convenient to own an electric vehicle in Wellington City.

Goal 5: Improving how we work

Focus Area 1: Living Wage

What success looks like in 3 years

An official living wage for all Council and CCO staff has been introduced

A living wage for relevant contracts delivering ongoing core services has been implemented

Obtain Council accreditation has been obtained within the triennium.

New proposals and areas of focus for 2016-2019

Living Wage

In 2017/18 we will raise the minimum wage paid by the Council and its council-controlled organisations to the official NZ Living Wage. This will rise to $20.20 on 1 July 2017.

In addition to this, the Council will commit to a staged implementation of the Living Wage on relevant contracts for regular and ongoing core services, to be processed on a case-by-case basis. In 2017/18 the Council’s primary focus will be on cleaning and sanitation services. We will also examine which of these services could best be delivered through an in-house model. We will seek to obtain living wage accreditation within the 3 years.

Focus Area 2: Improved engagement

What success looks like in 3 years

Improved engagement across the board (including ward community engagement) – particularly for important large-scale projects that have high community impact

Productive and ongoing engagement with iwi

Greater use of quantitative and qualitative (eg experiences) research to inform Council engagement and decision making

Simpler and more meaningful performance framework to guide decision making and accountability

Increasingly easier access to Council services and information

Engagement and consultation programmes support an increased community connection with the Council and understanding of Council plans, policies and programmes.

New proposals and areas of focus for 2016-2019

Relationship with iwi

We will continue to develop our relationships with our iwi partners and explore opportunities to work together on projects and programmes that benefit the city and its communities.

Engagement and consultation

We will work to expand the Council’s community engagement on significant projects and introduce more quantitative research for major projects to support the decision-making process.

We will also undertake more community led planning exercises. Our participatory co-design approach to community planning will target suburbs and the most vulnerable communities. While many aspects of improved engagement can be achieved from within existing budgets, introducing new engagement tools and/or scaling the engagement and communications component of projects/policies could have budget implications. These will be built into the business case of each project/policy.

Performance framework

We will review the monitoring framework as a decision-making tool, to ensure KPIs are meaningful for the Council and public. This work will be conducted in the first half of 2017 and includes setting performance measures and targets for this Triennium Plan. The new performance framework will be consulted on with stakeholders and the community as part of the 2018 Long-term Plan.

The review will be delivered from within existing resources. Depending on the nature and scale of data that needs to be collected for the new performance framework there may be a small additional cost, but in the first instance we will look to deliver this from existing resources.

Focus Area 3: Smart Council

What success looks like in 3 years

Key customer services redesigned for greater responsiveness, flexibility and resilience (including recording of jobs completed)

Increased staff satisfaction

IT network and Enterprise IT platform enables improved customer service, flexibility, and easier access to online services e.g. regulatory processes

Council workplaces redesigned for improved customer service, flexibility, and resilience

Council learnings seamlessly informs decision making.

New proposals and areas of focus for 2016-2019

Smart Council programme

Continue to develop and implement projects that focus on becoming customer focussed, digitally enabled, agile, scalable, transparent and open. Funding implications will be brought to committee once further detailed work has been completed.

Focus Area 4: Council building resilience

What success looks like in 3 years

Council buildings are resilient for a range of events

Council service hubs in a range of locations across the city, building on existing networks.

New proposals and areas of focus for 2016-2019

Council buildings

It is important that the Council is able to provide critical services after an event. Resilient accommodation for staff is a prerequisite.

The Council is currently operating out of a reduced accommodation portfolio. Information is pending on key buildings (eg the Civic Administration Building), and once detailed information becomes available, we will review the Council’s entire accommodation portfolio and consider options.

Focus Area 5: Financial sustainability

What success looks like in 3 years

The Council’s budget is sustainable, work is effectively prioritised to deliver on triennium goals

Services are delivered in the most efficient and effective way

New proposals and areas of focus for 2016-2019

Budget

Rates increases will be kept below 3.4% for the 2017/18 year.

Appendix 2: Detailed performance information

Governance

Activity | Performance measure | Targets
2016/17 | 2017/18
1.1 Governance, information and engagement | Residents (%) satisfaction with the level of consultation (i.e. the right amount) | 55% | 55%
Residents (%) who are satisfied or neutral (neither satisfied nor dissatisfied) with regard to their involvement with decision-making | 75% | 75%
| Council and committee agendas (%) are made available to the public within statutory timeframes (2 working days prior to the meeting) | 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%
| Residents (%) who agree that Council information is easy to access (e.g. from the website, libraries, newspapers, etc.) | 55% | 60%
| Residents (%) who agree that the Council website is easy to navigate and get information from | 70% | 75%
| Contact Centre response times – calls (%) answered within 30 seconds | 80% | 80%
| Contact Centre response times – emails (%) responded to within 24 hours | 100% | 100%
| Mana whenua partner satisfaction with Council relationship (satisfied and very satisfied) | Satisfied | Satisfied
| Māori residents (%) who are satisfied or neutral (neither satisfied nor dissatisfied) with regard to their involvement with decision-making | 75% | 75%

Environment

Activity
Performance measure
Targets

2016/17
2017/18

2.1 Gardens, beaches and green open spaces
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%

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

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

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

We will plant 2 million trees by 2020
1,539,927
(77% of 2020 target)
1,690,127
(85% of 2020 target)

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

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

2.2 Waste reduction and energy conservation
Residents (%) satisfaction with recycling collection services
85%
85%

Waste diverted from the landfill (tonnes)
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%

Residents (%) satisfaction with waste collection services
90%
90%

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

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

2.3 Water
Compliance with Drinking Water Standards for NZ 2005 (revised 2008) (Part 4 bacterial compliance criteria) and (Part 5 protozoal compliance criteria)
100%
100%

Maintenance of water supply quality gradings from Ministry of Health
Maintain
Maintain

Customer satisfaction with water supply
90%
90%

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

Median response time for:
attendance for urgent call outs
resolution for urgent call out
attendance for non-urgent call outs
resolution for non-urgent call outs

60min
4 hours
36 hours
15 days

60min
4 hours
36 hours
15 days

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

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

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

2.4 Wastewater
Number of wastewater reticulation incidents per km of reticulation pipeline (blockages)
<=1.2
<=1.2

Dry weather wastewater overflows/1000 connections
0
0

Customer satisfaction with the wastewater service
75%
75%

Number of complaints about:
(a) wastewater odour
(b) wastewater system faults
(c) wastewater system blockages
(d) responsiveness to wastewater system issues
per 1000 connections.
n/a
n/a

Median response time for wastewater overflows:
(a) attendance time
(b) resolution time
(a) <= 1 hour
(b) <= 6 hours
(a) <= 1 hour
(b) <= 6 hours

Breaches of Resource consents for discharges from wastewater system.
Number of:
- abatement notices
- infringement notices
- enforcement orders
- convictions
for discharges from wastewater system
0
0

2.5 Stormwater
Number of pipeline blockages per km of pipeline
<= 0.5
<= 0.5

Customer satisfaction with stormwater management
75%
75%

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

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

Breaches of resource consents for discharges from stormwater system.
Number of:
- abatement notices
- infringement notices
- enforcement orders
- convictions
for discharges from stormwater system
0
0

Number of flooding events
n/a
n/a

Number of habitable floors per 1000 connected homes per flooding event
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%

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%

2.6 Conservation attractions
Wellington Zoo – visitors
239,408
242,520

Zealandia – visitors
93,600
96,500

Economic development

Activity | Performance measure | Targets
2016/17 | 2017/18
3.1 City promotions and business support | Wellington Regional Economic Development Agency (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
| Estimated attendance at Council-supported events | 500,000 | 600,000
| Events Development Fund – ratio of direct spend to economic impact | 20:1 | 20:1
| The proportion of grant funds successfully allocated (through milestones being met) | 95% | 95%

Cultural wellbeing

Activity | Performance measure | Targets
2016/17 | 2017/18
4.1 Arts and culture activities | Attendee satisfaction with Council-supported arts and cultural festivals | 90% | 90%
| User (%) satisfaction with Toi Pōneke facilities and services | 90% | 90%
| The proportion of grants funds successfully allocated (through milestones being met) | 95% | 95%
| Proportion of outcomes delivered (previous projects-weighted by $ value) | 90% | 90%
| Venues Subsidy – total number of performers and attendees at supported events | 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%

Social and recreation

Activity
Performance measure
Targets

2016/17
2017/18

5.1 Recreation promotion and support
User (%) satisfaction - swimming pools
90%
90%

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

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

Visits to facilities –swimming pools
1.260m
1.277m

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

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

Sportsfields - % of scheduled sports games and training that take place
Winter 80%
Summer 90%
Winter 80%
Summer 90%

Marinas occupancy
96%
96%

Artificial sportsfields % utilisation – peak and off-peak (summer and winter)
Peak Winter 80%
Peak Summer 40%
Off peak winter 25%
Off peak summer 20%
Peak Winter 80%
Peak Summer 40%
Off peak winter 25%
Off peak summer 20%

5.2 Community support
Tenant satisfaction (%) with services and facilities
90%
90%

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

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

Occupancy rate of available housing facilities
90%
90%

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

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

Libraries – user (%) satisfaction with services and facilities
90%
90%

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

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

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

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

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

Libraries – physical visits
2.4m
2.4m

Libraries – website visits
2.5m
2.5m

Library items issued
3m
3m

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

5.3 Public health and safety
Dog control – urgent requests responded to within 1 hour and non-urgent within 24 hours
Urgent 100%
Non urgent 99%
Urgent 100%
Non urgent 99%

WCC public toilets – urgent requests responded to within 4 hours and non-urgent within 3 days
Urgent 100%
Non urgent 95%
Urgent 100%
Non urgent 95%

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

Percentage of very high risk premises inspected during peak times (amended measure for 2017/18)
n/a
38%

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

Number of compliance or enforcement actions taken per year
nil
nil

Graffiti removal – response timeframes met
80%
80%

Urban development

Activity
Performance measure
Targets

2016/17
2017/18

6.1 Urban planning, heritage and public spaces development (including waterfront development)
Residents (%) who agree the city is developing in a way that maintains high
quality design
Increase from previous year
Increase from previous year

District Plan listed items that are removed or demolished
nil
nil

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

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

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

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

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

6.2 Building and development
Building consents issued within 20 working days
100%
100%

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

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

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

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

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

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

Environmental complaints investigated within 48 hours
98%
98%

Customers (%) who rate building control services as good or very good
70%
70%

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

Earthquake-prone building notifications (section 124) (%) that are issued without successful challenge
95%
95%

Transport

Activity
Performance measure
Targets

2016/17
2017/18

7.1 Transport
Residents’ condition (%) rating of the network – roads and footpaths (good or very good)
Roads: 75%
Footpaths: 75%
Roads: 75%
Footpaths: 75%

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

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

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

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

Residents' satisfaction (%) with street lighting in the central city and suburban areas
Central: 85%
Suburbs:75%
Central: 85%
Suburbs:75%

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

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

7.2 Parking
On-street car park turn-over rates - weekdays and weekends
Week: 6.8
Weekend:5.2
Week: 6.8
Weekend:5.2

On-street car park average occupancy
75%
75%

On-street car park compliance - time restrictions and payment
Time: 95%
Payment: 90%
Time: 95%
Payment: 90%

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

Appendix 3: Your Mayor and Councillors

Citywide

Justin Lester
(Mayor)

04 499 4444
mayor@wcc.govt.nz

Chair: Council

Portfolio Leader: Arts and Culture, Major City Projects, Governance

Southern Ward

Paul Eagle
(Deputy Mayor)

027 329 0646
paul.eagle@wcc.govt.nz 

Chair: Long-term and Annual Plan Committee, CEO Performance Review Committee

Portfolio Leader: Housing, Recreation, Events

Onslow-Western Ward

Diane Calvert

029 971 8944
diane.calvert@wcc.govt.nz

Portfolio Leader: Community Planning and Engagement

Eastern Ward

Chris Calvi-Freeman

027 803 0015
chris.calvi-freeman@wcc.govt.nz

Portfolio Leader: Transport Strategy and Operations

Lambton Ward

Brian Dawson

027 413 5809
brian.dawson@wcc.govt.nz

Portfolio Leader: Social Development, Living Wage

Northern Ward

Jill Day

027 262 3181
jill.day@wcc.govt.nz

Portfolio Leader: Māori Partnerships, Children and Young People

Eastern Ward

Sarah Free

022 121 6412
sarah.free@wcc.govt.nz

Chair: Grants subcommittee

Portfolio Leader: Public Transport, Cycling and Walking

Onslow-Western Ward

Andy Foster

021 227 8537
andy.foster@wcc.govt.nz

Chair: Finance, Audit & Risk Management Subcommittee

Portfolio Leader: Urban Development, Finance, Predator Free Wellington, Karori Framework

Northern Ward

Peter Gilberd

027 614 1416
peter.gilberd@wcc.govt.nz

Portfolio Leader: Natural Environment, City Scientist

Southern Ward

David Lee

021 220 2357
david.lee@wcc.govt.nz

Portfolio Leader: Technology, Innovation, Enterprise (TIE), Climate Change

Eastern Ward

Simon Marsh

021 922 196
simon.marsh@wcc.govt.nz

Portfolio Leader: Economic Development, Small Business (joint)

Lambton Ward

Iona Pannett

021 227 8509
iona.pannett@wcc.govt.nz

Chair: City Strategy Committee

Portfolio Leader: Infrastructure and Sustainability

Northern Ward

Malcolm Sparrow

027 232 2320
malcolm.sparrow@wcc.govt.nz

Chair: Regulatory Process Committee

Portfolio Leader: Community Resilience

Onslow-Western Ward

Simon Woolf

027 975 3163
simon.woolf@wcc.govt.nz

Chair: Council Controlled Organisations Subcommittee

Portfolio Leader: Wellington Ambassador Tourism, Small Business (joint), Sport

Lambton Ward

Nicola Young

021 654 844
nicola.young@wcc.govt.nz

Portfolio Leader: Central City Projects, Education Partnerships