Mayor’s welcome

Partnerships

Progress

Resilience

Wellington City has enjoyed a good year; a year of events and investment that we’ll benefit from for generations to come.

The year 2012/13 can be characterised as a year of partnerships and creating the conditions for our new, diverse and innovative economy to thrive. The spectacle of the global premiere for The Hobbit: An Unexpected Journey, the Royal Visit of Charles, Prince of Wales and Camilla, Duchess of Cornwall, and the inaugural AFL premiership match held outside Australia excited the Capital.

The year was also about resilience: city resilience through stronger buildings and robust emergency responses; community resilience through stronger partnerships with social agencies, schools, community groups and neighbourhoods; economic resilience through the continued diversification of the Wellington economy, fostering the development of our innovative companies and promoting the export of our ideas and products to the world.

Our planning and preparedness for unexpected natural events revealed their benefits only weeks after the Council year 2012/13 ended.

Partnerships

Emergency management: Recent events have confirmed the Council’s view that our priority must be on a strong, resilient city. In July 2012 the new regionally shared emergency management organisation (Wellington Regional Emergency Management Office – WREMO) began operating, pulling together expertise from around our region’s councils. In conjunction with WREMO and GNS we undertook 26 seminars to better inform the public about earthquake risk and personal preparedness. Over 1400 people attended these sessions. Earthquake assessments for homes were made available and local products and services were showcased at the Wellington Rocks! expo.

City Housing: Our partnership with the Crown for the Housing Upgrade Project is the largest and most intensive social housing redevelopment project ever undertaken in New Zealand. We completed the upgrade of Central Park Apartments in August 2012 and Newtown Park Apartments, ahead of schedule in June 2013, a total of 395 units. The upgrades included seismic strengthening, new kitchens and bathrooms, thermal curtains, improved ventilation and insulation and the reconfiguring of some units. Further work on affordable housing is in progress.

Education: Our teams collaborated with 80 Victoria University students, to examine how we strengthen Cuba Street buildings while retaining their special heritage character, and signed up with Victoria University for an ongoing planting initiative on Te Ahumairangi Hill. The Wolf Pack safety campaign was developed by Massey University students, including a mobile app where users can keep connected to friends. A good example of our Smart Capital in action!

Mana whenua: We continued with many activities throughout the year – Matariki, Māori Language Week, and Waitangi Day celebrations. The public sector kapa haka concert Te Kōnohete was a huge success, drawing more than 800 of the Capital’s people together in performance and the spectacular Oruaiti Reserve was opened in November 2012.

ProgressTop

This year was the first year of our Long-term Plan to implement the vision Wellington Towards 2040: Smart Capital. Here are some indicators from our four outcomes that show we’re on the right track:

Eco city: total waste to landfill per capita has decreased from last year by 0.02 tonnes per person; energy use has dropped from 6.9 MWh per person to 6.7 MWh; residential water consumption has decreased by six litres per person per day to 288 litres. The Home Energy Saver programme resulted in over 635 home energy assessments to Wellington households and 364 of these customers installed an energy efficiency measure on the spot (over 680 low energy light bulbs, 255 efficient shower heads and 154 draught-proof measures).

Connected city: 97 percent of residents now have access to broadband, and within the Wellington region there were 23,608,000 passenger trips on a bus and 11,355,000 on a train. Usage of our CBD Free wireless internet was up seven percent on the previous year, no doubt assisted by our golden run of weather.

Dynamic central city: We have 4500 smart businesses in the city and 12 percent of employees working in the smart business sector; 13,134 people reside in the central city, equating to 7.3 percent of the city’s population and 82 percent of residents feel a sense of pride in the look and feel of the central city. The Wellington region gained 5900 new jobs, according to Statistics NZ, higher than anywhere except Canterbury.

People-centred: Eighty eight percent of residents rate their quality of life as extremely good or good; and we feel safe – 98 percent feel safe in the central city during the day.

ResilienceTop

Although the earthquakes of 21 July 2013 and 16 August 2013 are outside the timeframe for this report they’re certainly on everyone’s minds – and we worked hard throughout the previous year to prepare for such events.

Strengthening work: Projects for the Begonia House, Rugby League Park Stand and the Colonial Cottage have been completed and the buildings are no longer earthquake prone. A total of 4239 pre-1976 buildings have been assessed since mid-2009. Six hundred and twelve have been declared earthquake prone of which 134 are heritage, and 757 are left to assess. We will complete this programme of assessments by June 2014.

Preparedness: Our people are prepared for an emergency more than anywhere in New Zealand. Seven out of 10 Wellington residents have water stored away for an emergency, 78 percent of residents have emergency items and 42 percent have plans at the ready.

Communication and engagement: This is always an important issue and our residents' survey indicated we could improve in this area, so it’s pleasing that the Council has launched its Draft Engagement Policy for your consideration this next year.

There are many community, business and Council achievements to celebrate, and many more planned for the year ahead.

CELIA WADE-BROWN
Mayor

Chief Executive’s welcome

I’m new to Wellington, having become Chief Executive of this Council in April this year. I can already see that this is a great city. It is safe, vibrant, creative, as well as having many environmental features and advantages. I love living here and I am proud to lead this organisation.

As you will see in this report, the Council is in a healthy financial position and is making good progress on its key priorities. In terms of economic growth, we successfully hosted the world premiere of The Hobbit: An Unexpected Journey and agreed to contribute to the cost of the Resource Management Act approvals process for the proposed Wellington International Airport runway extension. In addition to this, we have decided to use $3 million of this year’s operating surplus to build a Wellington Economic Initiatives Development Fund for the coming year to target further events, initiatives and partnerships as priority areas for growth.

In terms of our resilience to natural disasters, we have done a significant amount of investigation and planning around the strengthening of Council owned buildings. A work programme and funding has now been agreed, with the Town Hall project about to get underway. In addition to this we have been strengthening the city’s core infrastructure including underground pipes, reservoirs, bridges and retaining walls with the strengthening of the Karori Tunnel being a key achievement this year. We have also made great progress with the upgrade of our social housing portfolio, with significant investment from Central Government. The completed projects and associated community programmes continue to win awards and are a true credit to all involved. We look forward to similarly successful partnerships with the Government, particularly in the transport area with the Memorial Park project underway and other major network projects for the region going through their consenting phases.

The Council recorded a net surplus of $28.2 million. After adjusting for fair value movements and other non-cash items of income and expense, the underlying surplus for 2012/13 is $3.6 million – this is largely due to savings in interest and depreciation from the Council not completing its planned capital work programme. The significant amount of carry forward capital expenditure, which results in these interest and depreciation savings, is not a pattern that I see continuing as we set more realistic capital programmes that are more focussed on our key priorities.

In terms of our overall performance, you will note on page 7 that, to take advantage of new technology and reduce costs, we have changed how we survey Wellingtonians about our performance. This has had an impact on some of the results. However, it is also clear that people feel more negative about our performance in some areas, particularly around how we make decisions and satisfaction with some facilities. We will be looking into these results further to find out what we can do to improve our future performance in these areas.

I am committed to working with the elected members, all staff, our partners and the wider community to take this city and region forward. The economy holds the key to our success. We need to invest in the right projects – projects that cut our costs, generate income or lead to economic growth, which in turn expands the business rate base. This will enable the Council to maintain its investment in community infrastructure while keeping rates affordable. I’m committed to leading an organisation that delivers, is accessible and open. This report is part of that commitment. An informed community is, after all, important for a healthy democracy.

KEVIN LAVERY
Chief Executive

Our role and direction

Who we are

Our aims

Explaining our work

Our methodology

We are responsible for community wellbeing

Who we are

Wellington City Council is made up of 15 elected representatives – the Mayor and 14 Councillors. It’s their job to make bylaws, set the city’s overall strategic direction, and approve budgets, policies and plans aimed at achieving that direction. Part of their role is to listen and take the pulse of the community before making decisions. They are supported in their governance role by two community boards.

The elected representatives are supported by the Council’s Chief Executive and 1550 staff, who provide advice, implement Council decisions, and look after the city’s day-to-day operations.

Our aimsTop

In June 2012 the Council adopted the 2012–22 Long-term Plan. This plan outlined the services we planned to deliver for the next 10 years.

This Annual Report explains how we’ve delivered on year one of the Long-term Plan.

The Long-term Plan outlined our vision for the city – Wellington Towards 2040: Smart Capital, which contains four outcomes for the city: to be people centred, connected, an eco-city and have a dynamic central city. These outcomes guide our decisions about our services and what we plan to do. The Long-term Plan also outlined three priorities to guide us for the next three years: an inclusive place where talent wants to live; a resilient city; and a well managed city.

We will work with other organisations to further these community outcomes

These outcomes and priorities are structured around seven areas. The chapters in this report highlight progress towards those outcomes.

The seven chapters are:

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

Explaining our workTop

In this report you’ll be able to find information about the state of the city – everything from the transport network to the state of the environment to the strength of Wellington’s communities.

For each activity we explain:

What we do – an outline of the scope of our work under the activity.
Contribution – how our activities contribute towards our outcomes.
Key projects – a description of milestones and activities achieved during the year.
What it cost – a summary financial table for that activity.
How we performed – an outline of results against targets. We place these in the context of past results and next year’s targets where appropriate.

Our methodologyTop

The performance information is drawn from a wide variety of sources, including annual surveys of Wellington residents.

Every year we carry out a series of surveys which collectively are called the Residents Monitoring Survey (RMS). Some of the information is used to inform the Annual Report and highlights how the Council and its Council Controlled Organisations (CCOs) are performing from the point of view of Wellington and New Zealand residents.1 They also help us identify where we may need to make improvements in how we do things.

In recent years the survey has consisted of two separate surveys of Wellington residents, one focusing on the Council and one on the CCOs, as well as a survey of residents across New Zealand focusing on Wellington’s reputation across the country.

Change in methodology

In 2012, two of the three surveys were changed from telephone surveys to online surveys. In 2013, all of the surveys were conducted online (80 percent using the Council’s newly established research panel and 20 percent from an external research panel).

The Council’s research panel members were recruited using a third party media company. Invitations were sent to individuals to sign up – but were only accepted as members if they met quotas around age, gender and electoral ward to ensure the panel is representative of Wellington. No panel members were self selected.

This change was carried out because:

online is significantly cheaper. Doing the survey online using the new research panel costs about half what it would cost to do the surveys by telephone. Also, the panel can be used for other surveys throughout the year, saving the Council up to $15,000 each time.

the telephone method is becoming less viable as fewer research companies are offering this service. Also, it relies on matching phone numbers from the Yellow Pages to names on the electoral roll, which causes difficulties in obtaining an adequate sample size due to increased mobile phone usage and unlisted numbers.

the reliability of online research panels have matured to the point where they are becoming the industry standard.

we timed the change to tie in with the start of the new performance framework, which we developed as part of our 2012–22 Long-term Plan.

Impact on results

Between the 2012 and 2013 years, some measures in the RMS show a drop in people rating the Council and its CCOs positively. In some cases the drop is large. In most cases this is represented by an increase in the ‘neutral’ response as well as an increase in negative ratings.

Some of the decline is due to the change in methodology. There is a tendency to respond more negatively when answering a question anonymously in written form, as opposed to a person on the telephone. In some cases it has been shown that people respond more truthfully when answering about something that is socially desirable.

There is also a tendency to respond more neutrally, towards the middle of the scale and away from extremes.2

It is not possible to know how much of the change is due to the change in method and how much is due to an actual drop in performance.3 The timing of the surveys may also have impacted the results. Previously the surveys were carried out in February and May. In 2013, the surveys were carried out in June.

Consequently, care should be taken when comparing the results of the survey in 2013 with results from previous years. In this report, we have drawn a line between the results of this year and those of previous years to highlight the change in the survey methodology. We have also tried to identify factors that may have contributed to the change in result where appropriate.

The sample of 500 residents4, aged over 18, is representative of the Wellington population in terms of electoral ward, age and gender. The maximum standard margin of error is +/-4.38 percent.

Areas highlighting where improvement is needed

Regardless of the change in method, the Council is taking the results seriously. In particular the Council is exploring further the following areas, which show some of the largest increases in negative ratings:

Council decision-making and information:

Areas include how Wellingtonians feel the Council involves the community and people in decision-making, how easy it is to access information, whether the Council makes decisions in the best interests of the city, whether people understand how the Council makes decisions, and how much influence people feel they have on the decisions made by the Council. People are also telling us that our website is not easy to navigate or get information from.

The Quality of Life Survey (conducted in September 2012) also showed a decline in how well people understand council decision-making processes across all six cities participating in the survey. While still low, Wellington scored the highest out of the six cities (38 percent compared to the average of 29 percent across the group). For confidence in council decision making, Wellington scored 46 percent compared to the average of 36 percent across the group (ranking third out of the six cities), and for public influence on council decision-making, Wellington scored 48 percent compared to the average of 37 percent across the group (ranking second across the group).

To better understand these results and actions that the Council could take in response, we are commissioning an external agency to conduct a series of focus groups with those people who have rated the Council negatively on these questions. The results will feed into the implementation of the Council’s Engagement Policy, which is being reviewed.

Satisfaction with some Council services and facilities:

Areas include public toilets, playgrounds, skate parks, and recreation centres, and value for money for recreation services and facilities.

The Council is undertaking customer service surveys with the users of recreation facilities to identify where improvements can be made.

The Council needed to make this change in how the survey was conducted at some point for a number of reasons as noted above. We chose to coincide the change with the start of a new Long-term Plan period and with the introduction of some new measures. Therefore, the results of this year’s surveys can now be viewed as a new benchmark for residents’ satisfaction.

1 Approximately 23 percent of the measures in the Annual Report are derived from the RMS.

2 The Quality of Life survey of residents in six New Zealand cities changed from telephone to online methodology in 2012. A smaller sample of Wellington residents were also surveyed using the telephone method enabling a direct comparison to be made. Overall, those questions concerned with Council decision-making showed a shift away from the extreme positive towards the negative in the online responses.

3 Given the impact of the change in methodology, we will be reviewing our performance targets in some areas.

4 45 percent of those sent the survey responded.

Glossary of terms

We have compiled a list of key terms we use throughout the report.

Annual Plan – the Annual Plan is a budget prepared by the Council showing the expected cost of running the city for the year of the plan and how the costs will be funded. An Annual Plan is not prepared in years when a Long-term Plan is prepared (see Long-term Plan).

Associates – are entities the Council owns a share of but does not control. Our share of the associates’ surplus/deficit and net assets is recorded in the Group financial statements. The Council’s associates are Basin Reserve Trust (50 percent), Capacity (63 percent), Chaffers Marina Holding Limited (12 percent), Wellington International Airport Limited (34 percent) and Wellington Regional Stadium Trust (50 percent).

Capital expenditure – expenditure on assets that provide a long-term ongoing benefit to the Council, usually fixed assets (property plant and equipment), for example buildings.

Cash and cash equivalents – includes cash as well as deposits which mature in less than three months.

Current asset – an asset that can readily be converted to cash or will be used to repay a liability within 12 months of balance date.

Current liability – a liability that is required to be discharged within 12 months of balance date.

Depreciation (amortisation) – an expense charged each year to reflect the estimated cost of using our assets over their lives. Amortisation relates to ‘intangible’ assets such as software (as distinct from physical assets, which are covered by the term depreciation).

External funding for capital expenditure – funding recorded as income but used to fund capital expenditure projects.

Fair value – essentially reflects the market value of assets or liabilities.

Investment properties – these are properties that are primarily held by the Council to earn rental income.

Liquidity/funding risk – this is the risk that the Council will not have access to the required funds to meet its present obligations.

Long-term Plan – a 10 year forecast prepared every three years showing the expected cost of running the city for the following ten years and how the costs will be funded.

Net borrowings – total borrowings less any cash or cash equivalents.

Net surplus/(deficit) - the difference between total income and total expenses. It includes both operating revenue and operating expenditure as well as other non-funded items of revenue and expenditure such as capital funding, vested asset income and fair value movements.

Operational expenditure – expenditure that is not capital expenditure (see Capital expenditure).

Prudential limits – these are limits applied to the level of borrowings to ensure we are managing the Council’s assets and liabilities prudently. These limits are outlined in the Investment and Liability Management Policy in the Long-term Plan.

Ring-fenced – funds that can only be used for a specific purpose.

Total comprehensive income – is the net surplus/(deficit) adjusted for fair value movements of some of our assets including plant and equipment and financial instruments such as cash flow hedges. These movements are non-cash in nature and reflect the changing fair value of assets the Council owns.

Underlying funding surplus/(deficit) – the portion of the overall net surplus/(deficit) that has arisen from changes to operating income operational expenditure as compared to budget.

Vested assets – assets that are created by others and passed into Council ownership (eg roads built by a developer as part of a subdivision).

Key financial facts

Just over half of our income comes from rates which means a significant portion comes from other sources

Income Source | $ (million)
General household rates | 74.8
General commercial rates | 63.9
Sewerage rates | 33.5
Stormwater rates | 17.4
Water rates | 34.0
Downtown Levy | 13.7
Other rates | 0.1
Income for capital expenditure | 39.6
Revenue from operating activities | 122.6
Revenue from investments | 23.6
Other income | 23.2

Our borrowings and our assets

Borrowings are used to fund assets that will deliver services to Wellington for many years.

The Council's level of debt, in simple terms, equates to a 5.4% mortgage on the city's assets

Where the money was spent

Cost per resident per year

Economic development
$165

Transport
$253

Urban development
$182

Environment
$700

Council
$142

Cultural wellbeing
$89

Social and recreation
$483

Governance
$75

Wellington 2040 indicators

Dynamic central city 2012/13

Eco city 2012/13

Connected city 2012/13

People centred city 2012/13

These indicators highlight our progress towards reaching our vision of Wellington Towards 2040: Smart Capital in the 2012/13 year. For further results on these long-term outcomes see the Monitoring Information on page 198.

Dynamic central city 2012/13

GDP per capita growth
GDP per capita growth for 2012–13: 0.2%

New jobs across the city in smart, knowledge intensive areas:
Number of new jobs in ‘smart’ businesses: 451; Total new jobs 2168.

The population of the central city and the proportion of growth in the CBD
13,134 people reside in the central city, equating to 7.3% of the city’s population.

The number and growth of enterprises and jobs in the central city
City – enterprises: 25,086; jobs: 140,320. Central city – enterprises: 8,641; jobs: 96,410.

The resolution rate of earthquake prone buildings and community preparedness
Identified earthquake prone buildings strengthened/demolished 2012/13: 44 Residents with emegency items and plan: items: 78% Plan: 42%

Resident’s sense of pride in the look and feel of the central city
82% of residents feel a sense of pride

Eco city 2012/13Top

City wide greenhouse gas emissions
We have commissioned URS to do our city-wide greenhouse gas inventories for 200/01, 2006/07, 2009/10 and 2012/13 using the latest international best practice methodology. This will be reported on in the 2013/14 Annual Report.

The mode of residents’ travel into the CBD and amount of fuel sold in the city
Car: 33%; Bus: 34%; Walking: 20%; Train: 6%; Cycle:3%. Fuel used on Wellington roads: 2012/13: 1,843 litres/person

Landfill waste per capita
0.41 tonnes/person.

The breadth and health of native bird species
See page 198 in the Monitoring information

New Zealanders perception of the extent that Wellington is an eco-city
27% of New Zealanders agree that Wellington is an eco-city

GWH of renewable energy generated within the city’s boundaries
Total renewable energy generated in the city = 475,850 MWh, which is equivalent to 35% of the city’s electricity consumption.

Growth of ‘smart’ jobs and enterprises
Number of smart businesses in the city: 4,507; Percentage of employees working in smart business sector: 11.6%

Connected city 2012/13Top

Access to, and usage of broadband (including ultrafast)
97% of residents have access

Peak travel times
Peak travel times between CBD and suburbs (Peak travel time range (minutes) Miramar 10.0–15.0 Karori 9.0–24.0 Island Bay 8.0–21.0 Johnsonville 7.0–26.0

Usage of public transport (trains and buses)
Total passenger boardings: Bus: 23,608,000; Trains: 11,355,000 (Wellington Region)

Value of exports
Wellington Airport: Tonnage: 870, Value $18.5M Wellington Seaport: Tonnage 1.15M; Value $989M

Number of international air connections
One - Australia

People centred city 2012/13Top

Residents health (chronic disease rates) and their perceptions of safety
Health info – Heart disease: 3.3%, Diabetes: 4.9%, Obesity: 25.7% Central city day = 98%. Central city night =72%. Neighbourhood day = 99%. Neighbourhood night = 85%.

Resident perceptions of their quality of life
88% of residents rate their quality of life as extremly good or good

Average incomes of residents and labour force participation
(2006 Census data): Median personal income: $32,500; Median Household Income: $72,200. (2012/13) Labour force participation rate: 71.5%

The diversity of the population and residents’ values regarding diversity
30% of the city’s population are non-European. 67% of residents believe that different lifestyles and cultures make Wellington a better place to live.

Educational achievement and youth participation
33% of Wellingtonians over the age of 15 have a Degree-level qualification or higher. (2006 census data – not updated) youth NEET rates: 9.9%

Ratio of income to cost of living
Between 2011 and 2012, the ratio between earnings and cost of living increased by 0.8% (became more expensive).

Resident perceptions of their social networks and community cohesiveness
School or work network: 58%; Hobby/interest group: 30%; Online community groups (eg Facebook): 51%; Sports club:29%; Church/spiritual group:19%; Community/voluntary group: 18%; Friends:3%. Residents’ perceptions that they feel a sense of community with others in their local neighbourhood: 53%

Governance

1.1 Governance, information and engagement

1.2 Māori and mana whenua partnerships

Pārongo Ā-Tāone

1 Governance Pārongo Ā-Tāone

1.1 Governance, information and engagement

What we do:

Our governance, information and engagement activities contribute to us being

Key projects

What it cost

How we performed

Pārongo, kōrerorero whānui me ngā mahi whakataunga

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

What we do:

City governance and engagement

Civic information

City archives

Our governance, information and engagement activities contribute to us beingTop

People-centred –These activities enhance trust and confidence in civic decision-making and encourage the community to participate in city governance.

Connected – Providing information about our services allows people to use the city’s services, facilities and activities.

Key projectsTop

During the year:

The Council conducted a Representation Review on the ward boundaries and electoral system. The Local Government Commission agreed with the Council’s decision to retain the existing ward structure, community boards and electoral system.

We completed preparations for the 2013 local authority elections by updating the ratepayer roll and finalising the contract with electionz.com Ltd for the provision of election processing and electoral officer support services.

As part of our e-meetings solutions project we upgraded our committee room with collapsible computer screens and rolled out Council DashBoard – a Cloud-based solution to deliver meeting documents on iPads for the Mayor and Councillors.

We consulted on several initiatives and projects including a homelessness strategy – Te Mahana – a policy and legislative review of the Town Belt, a design brief for development of north Kumutoto on the waterfront, an Events Policy and various traffic resolutions.

We led a comprehensive engagement and consultation programme across the city to develop the draft Alcohol Management Strategy, for which 277 submissions were received. Key stakeholders included students, licensees, city housing tenants, Pacific and ethnic communities, Māori communities, the hospitality and retail industries, Police, the Medical Officer of Health, and residents associations.

The Council partnered with other councils in the region to examine if a different governance arrangement for the Wellington region would be beneficial for residents and businesses. A working party was established with Greater Wellington Regional Council, Kapiti District Council and Porirua City Council, and it concluded that a single unitary council, with or without the Wairarapa, would best provide the necessary scale to deliver improvements for the region.

– Two variations of the preferred model were developed – one with two tiers of representation (incorporating local boards), and the other with a single tier of representation. These two options were consulted on with the community over a six–week period from late March to early May 2013.

– We agreed with our community that if the governance model was to change, we would recommend a model with a single tier of representation, excluding the Wairarapa, and with small local wards that ensure direct access to local politicians and enhanced accountability.

The Council adopted its 2013/14 Annual Plan after public consultation that included over 470 public submissions. The plan explains what we will do over the next year, why we plan to do it, how much it will cost and how it will be funded.

We undertook consultation on the International Relations Policy with central government agencies, foreign government representatives in Wellington, local business agencies and sister-city organisations. The final draft of the policy will be released in August 2013.

City archives

We identified and digitised a large number of significant plans and documents relating to water supply, drainage and stormwater to support work around our asset planning and management.

We collaborated with other councils in the Wellington region to identify how we can deliver or enhance access to archival records across the region. We are also working closely with the Museum of Wellington City and Sea to coordinate what archives they should hold and what should sit with City Archives.

We worked closely with the Victoria University School of Architecture providing records to support their courses. In particular we provided a package of reference records to be used in first-year studies by students, which reduced multiple enquiries to Archives for the same material and provides an enhanced level of service to the students.

What it costTop

Operating Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

1.1.1 City Governance and Engagement

Expenditure
8,161
8,141
(20)
8,383

Revenue
(14)
(12)
2
(30)

Net Expenditure
8,147
8,129
(18)
8,353

1.1.2 Civic Information¹

Expenditure
5,327
5,587
260
5,422

Revenue
(248)
(198)
50
(244)

Net Expenditure
5,079
5,389
310
5,178

1.1.3 City Archives

Expenditure
1,283
1,322
39
1,179

Revenue
(208)
(174)
34
(180)

Net Expenditure
1,075
1,148
73
999

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

1.1.1 City Governance and Engagement

Expenditure
19
31
12
–

Unspent portion of budget to be carried forward
N/A
–
–
N/A

Under budget due to lower labour costs.

How we performedTop

To assess our performance, we ask residents’ views on information provision, decision-making, and consultation processes. We also monitor the performance of our Contact Centre answering calls and emails, and assess user satisfaction with City Archives services and facilities.

To understand the extent to which the public is informed and engaged

Percentage of residents satisfied with the level of consultation (ie the right amount)

Source: WCC Residents’ Monitoring Survey 2013

Residents’ (%) satisfaction with their involvement in Council decision-making (including neutral responses)

Source: WCC Residents’ Monitoring Survey 2013

In relation to the above results, the Council is revising its Engagement Policy and developing a plan to improve its approach to consultation and engagement. This will specifically look to address current barriers to people's understanding of our consultation processes and participation in our decision-making. We will report on our progress with this plan in our public Quarterly Reports.

E-democracy participation – number of ePetitions and number of people that participate

During the year 14 ePetitions were received. This compared with 18 in 2011/12 and 34 in 2010/2011. Not all ePetitions are accepted as some fail to meet Council criteria (for example, because they deal with issues outside our jurisdiction) and some are withdrawn by the petitioner. Of the 14 ePetitions received, six were declined and one was withdrawn. Of those that closed in 2012/2013, a total of 2148 people took part.

There is no target for this performance measure.

Source: WCC Democratic Services

To measure how easy it is for residents to access information and whether that information is available in a timely manner

Council and committee agendas (%) made available to the public five days prior to the meeting

The Local Government Official Information and Meetings Act 1987 requires us to make all agendas and reports available two days before meetings. We have set a higher standard for ourselves by aiming for five days.

The percentage of agendas that are available to the public five days prior to the meetings has been generally improving over time (59% in 2008/2009; 68% in 2009/2010; 75% in 2010/2011; 74% in 2011/12). This year the result has increased to 80%.

All agendas were made publicly available at least two days prior to the meetings, which is the legal requirement.

Source: WCC Democratic Services

Residents (%) who agree that Council information is easy to access

Source: WCC Residents’ Monitoring Survey 2013

We designed and launched a new website in February 2013. This may have attributed to residents finding it more difficult to access information until they became familiar with the new layout. This drop could also be due to the change in survey methodology.

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

Result: 59% of residents that have used the Council website in the past 12 months agreed it was easy to navigate, 52% agreed it was easy to get information from (target: 80%). This was a new measure for 2012/13.

Over the coming year we will be looking at ways to evaluate the effectiveness of the new design layout and information navigation of our website.

Source: WCC Residents’ Monitoring Survey 2013

Contact Centre calls that are answered within 30 seconds and emails that are answered within 24 hours

Source: WCC Contact Centre

To measure success of protecting the City’s historic information and making it available to the public

User satisfaction with City Archives services and facilities

Source: WCC City Archives

1.2 Māori and mana whenua partnerships

What we do:

Our Māori and mana whenua partnership activities contribute to us being

Key projects

What it cost

How we performed

Tawa community board

Makara/ohariu community board

Whai wāhitanga Māori (tae noa ki te mana whenua)

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

What we do:

Māori and mana whenua partnerships

Our Māori and mana whenua partnership activities contribute to us beingTop

People-centred –This activity promotes inclusiveness, celebrates social and cultural diversity, and enables us to respond to the needs and aspirations of Māori and mana whenua.

Key projectsTop

During the year:

We co-hosted with our iwi partner Taranaki-Whānui ki te Upoko o te Ika, a hui at Pipitea marae for newcomers considering citizenship. Around 100 people from many nationalities attended.

During Māori Language Week (23–29 July) we hosted:

– Kapa Haka and Kōrero at the City Gallery, featuring Ngā Taiohi o te Rāwhiti – Wellington East Girls' and Rongotai College's kapa haka group.
– Ngā Tautohetohe (debates) at the City Gallery featuring artists, community and college students.
– Rangitatau ki Kirikiri Tatangi heritage walk with guides Councillor Ahipene-Mercer and Holden Hohaia.
– Te Awe Māori Business Network annual cook-off at Te Raukura, te wharewaka o Pōneke.

Te Kōnohete, the public sector kapa haka concert was held in the Town Hall. Twelve kapa haka rōpū participated representing 15 agencies and an estimated 1000 people attended throughout the event.

Waitangi Day 2013 celebrations were held on the waterfront with the Port Nicholson Block Settlement Trust, our iwi partner.

We assisted with festivals and community events such as the Te Rā o Kupe festival, the Te Awe Māori Business Network community event, and the Matariki and Māori Language Week festivals.

What it costTop

Operating Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

1.2.1 Māori and Mana Whenua Partnerships

Expenditure
222
237
15
227

Revenue
(5)
–
5
(5)

Net Expenditure
217
237
20
222

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

1.2.1 Māori and Mana Whenua Partnerships

Expenditure
–
–
–
–

How we performedTop

We aim to have positive relationships with mana whenua, and high levels of engagement with all Māori in the city. We assess our mana whenua partnerships by carrying out an annual evaluation in which we ask mana whenua organisations about their perceptions of their relationships with the Council, and whether we are meeting our agreed obligations.

To measure the health of our relationship with mana whenua

Mana whenua partner evaluation – satisfaction with Council relationship

Our mana whenua partners perceive their overall relationship with the Council positively. Clear and regular communication and inclusion in meetings and development of policy supports the relationships.

Areas identified for improvement included ensuring appropriate training on the Treaty relationships for politicians and officials, especially when there are new elected members and changes in key staff.

In terms of the Council’s obligations under the Memoranda of Understanding, both mana whenua partners believe it is timely to review the obligations and expectations.

Wellington was perceived to be a great place to do business with a strong tertiary education influence and ease of access to a number of key businesses and professional institutions.

Source: Mana Whenua Partners’ Relationship Evaluation 2013

We continue to engage our iwi partners regularly on matters of partnership, participation and protection as agreed in our Memoranda of Understanding with Port Nicholson Block Settlement Trust and Te Rūnanga o Toa Rangatira Incorporated.

To measure the engagement of the City's Māori residents

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

Result: 60% of Māori surveyed were satisfied or neutral with regard to their involvement with decision-making (target: 85%. 2011: 78%).

Source: WCC Residents’ Monitoring Survey 2013.

Note: We increased the number of Māori sampled for selected questions in the survey. This improves our confidence in the results.

Mayor and Councillors

Mayor Celia Wade-Brown.
Celia Wade-Brown (Mayor)
City-wide
Phone: (04) 938 6691
mayor@wcc.govt.nz

Council appointments
Portfolio Leader: Climate Change, Information and Communications Technology, Finance, Emergency Management
The Mayor is an ex officio member of all committees and subcommittees

Ray Ahipene-Mercer.
Ray Ahipene-Mercer
Eastern ward
Phone: (04) 388 2366
ray.ahipene-mercer@wcc.govt.nz
Meeting Attendance: 94%

Council appointments
Portfolio Leader: Arts and Culture
Trustee: Wellington Museums Trust

Ngaire Best.
Ngaire Best
Northern ward
Phone: (04) 232 9000
ngaire.best@wcc.govt.nz
Meeting Attendance: 98%

Council appointments
Portfolio Leader: Three Waters and Waste
Director: Positively Wellington Venues
Tawa Community Board (Appointed Member)

Stephanie Cook.
Stephanie Cook
Lambton ward
Phone: (04) 970 5351
stephanie.cook@wcc.govt.nz
Meeting Attendance: 91%

Council appointments
Portfolio Leader: Social
Grants Subcommittee (Chair)

Jo Coughlan.
Jo Coughlan
Onslow-Western ward
Phone: (04) 802 5010
jo.coughlan@wcc.govt.nz
Meeting Attendance: 83%

Council appointments
Portfolio Leader: Economy
Trustee: Positively Wellington Tourism

Paul Eagle.
Paul Eagle
Southern Ward
Phone: (04) 934 7007
paul.eagle@wcc.govt.nz
Meeting Attendance: 96%

Council appointments
Portfolio Leader: Community Engagements
Director: Positively Wellington Venues

Andy Foster.
Andy Foster
Onslow-Western ward
Phone: (04) 476 9220
andy.foster@wcc.govt.nz
Meeting Attendance: 85%

Council appointments
Strategy and Policy Committee (Chair)
Portfolio Leader: Transport (Public Transport and Roading)
Director: Capacity

Leonie Gill.
Leonie Gill
Eastern ward
Phone: (04) 387 9363
leonie.gill@wcc.govt.nz
Meeting Attendance: 92%

Council appointments
Regulatory and Processes Committee (Chair)

Justin Lester.
Justin Lester
Northern Ward
Phone: (04) 478 8264
justin.lester@wcc.govt.nz
Meeting Attendance: 97%

Council appointments
Portfolio Leader: Community Facilities
Director: Wellington Waterfront Ltd
Tawa Community Board (Appointed Member)

Simon Marsh.
Simon Marsh
Eastern ward
Phone: 021 922 196
simon.marsh@wcc.govt.nz
Meeting Attendance: 96%

Council appointments
Trustee: Wellington Zoo Trust

Ian McKinnon.
Ian McKinnon
(Deputy Mayor)
Lambton ward
Phone: (04) 472 6832
ian.mckinnon@wcc.govt.nz
Meeting attendance: 100%

Council appointments
Performance Review Committee (Chair)
Audit and Risk Management Subcommittee (Chair)
Portfolio Leader: Governance
Director: Wellington International Airport Ltd

John Morrison.
John Morrison
Onslow-Western ward
Phone: (04) 938 9350
john.morrison@wcc.govt.nz
Meeting Attendance: 93%

Council appointments
Portfolio Leader: Sports and Events
Trustee: Wellington Regional Stadium Trust
Trustee: Basin Reserve Trust

Iona Pannett.
Iona Pannett
Lambton ward
Phone: (04) 384 3382
iona.pannett@wcc.govt.nz
Meeting Attendance: 99%

Council appointments
Development Contributions Subcommittee (Chair)
Portfolio Leader: Built Environment

Bryan Pepperell.
Bryan Pepperell
Southern ward
Phone: (04) 934 3660
bryan.pepperell@wcc.govt.nz
Meeting Attendance: 96%

Council appointments
Portfolio Leader: Walking, Cycling, Motorcycling and Safety

Helene Ritchie.
Helene Ritchie
Northern ward
Phone: (04) 473 1335
helene.ritchie@wcc.govt.nz
Meeting Attendance: 98%

Council appointments
Portfolio Leader: Natural Environment

Notes to the table:

The Mayor is an ex-officio member of all committees and subcommittees (that is 11 bodies plus the Wellington Regional Strategy Forum). The conduct of her other Mayoral duties restricts her ability to attend meetings of all these bodies and also the length of time she can be in attendance. Despite this she attended 72 percent of meetings during the year.

For information on remuneration and a breakdown of remuneration sources refer to Note 42 Related Parties Disclosures: Remuneration

The meeting attendance figure relates to Council, committee (including Strategy and Policy pre meeting sessions) and subcommittee meetings. Councillors are also appointed to Council-Controlled Organisations, community boards, working parties, advisory groups and other external bodies. The meeting attendance figures provided do not include Councillors’ attendance at these meetings. Such meetings can conflict with Council meeting times.

Tawa community boardTop

Malcolm Sparrow (Chair)
Meeting attendance: 100%
Phone: (04) 232 5030
Mobile: 027 232 2320
Email: malcolm@tawalink.com
Graeme Hansen (Deputy Chair)
Meeting attendance: 83%
Phone: (04) 232 9784
Mobile: 027 679 0968
Email: graemeh-tcbd@xnet.co.nz

Justin Lester
Meeting attendance: 83%
Phone: (04) 478 8264
Mobile: 021 247 8312
Email: justin.lester@wcc.govt.nz
Ngaire Best
Meeting attendance: 90%
Phone: (04) 232 9000
Mobile: 027 449 6925
Email: ngaire.best@wcc.govt.nz

Margaret Lucas
Meeting attendance: 83%
Phone: (04) 232 7284
Email: mm.lucas@xtra.co.nz
Chris Reading
Meeting attendance: 75%
Phone: (04) 232 8130
Mobile: 027 333 6800
Email: chris.reading@xtra.co.nz

Alistair Sutton
Meeting attendance: 92%
Phone: (04) 232 2873
Mobile: 027 478 8269
Email: thesuts@xtra.co.nz
Robert Tredger
Meeting attendance: 83%
Phone: (04) 232 5982
Mobile: 021 181 4499
Email: tredger@slingshot.co.nz

Makara/ohariu community boardTop

Christine Grace (Chair)
Meeting attendance: 100%
Phone: (04) 476 8176
Mobile: 027 462 0108
Email: gracecp@xtra.co.nz
Gavin Bruce (Deputy Chair)
Meeting attendance: 80%
Phone: (04) 478 3231
Mobile: 021 906 252
Email: bruceohariu@hotmail.com

Judy Liddell
Meeting attendance: 80%
Phone: (04) 477 2322
Mobile: 027 450 2009
Email: judyliddell@hotmail.com
Wayne Rudd
Meeting attendance: 90%
Phone: (04) 476 2283
Mobile: 027 228 8877
Email: wayne.rudd@paradise.net.nz

Margie Scotts
Meeting attendance: 60%
Phone: (04) 476 6601
Mobile: 027 462 0601
Email: mscotts@xtra.co.nz
Hamish Todd
Meeting attendance: 70%
Phone: (04) 477 4673
Email: aandhtodd@xtra.co.nz

Environment

2.1 Gardens, beaches and green open spaces

2.2 Waste reduction and energy conservation

2.3 Water

2.4 Wastewater

2.5 Stormwater

2.6 Conservation attractions

Taiao

2 Environment Taiao

2.1 Gardens, beaches and green open spaces

What we do

Our gardens, beaches and green open spaces activities contribute to us being

Key projects

What it costs

How we performed

Ngā wāhi wātea me ngā mahi papa atawhai

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

What we do

Local parks and open spaces

Botanic Gardens

Beaches and coastal operations

Roads open spaces

Town Belt

Community environmental initiatives

Walkways

Biodiversity (pest management)

Our gardens, beaches and green open spaces activities contribute to us beingTop

People-centred – High quality natural environments enhance Wellington’s unique ‘sense of place’, making it an even better place to live, work and play. They attract visitors and provide attractive, safe and accessible opportunities for leisure and recreation.

Connected – Accessible and high quality natural and green environments encourage people to gather together, share activities and connect with each other. Networks of green spaces and corridors link the city with its coastline and beaches. Conservation connects people with the environment and links the present to the future.

Eco-city – High quality natural and green environments protect and enhance our biodiversity and contribute to offsetting our carbon emissions. They model Wellington’s leadership role as Capital City of a clean and green New Zealand and as a leading sustainable city of the 21st Century.

Dynamic Central City – High quality natural and green environments accessible within minutes from the central business district attract visitors, and are important for residents’ quality of life.

Key projectsTop

During the year:

Parks and open spaces

We undertook flood protection measures at Prince of Wales Park by installing a stream bund to protect both the sportsfield and residential property adjacent to the park.

The revegetation programme was branded Two Million Trees under the Our Living City initiative and we planted 44,120 trees.

The spring turf renovations on all central business district lawns were complete in time for the premiere of The Hobbit.

We assisted in the trial of a new design of street bin, with increased capacity and the capability for mechanised servicing, as an alternative to existing bins. The first set of prototype bins have been deployed with performance data being captured for evaluation in 2013/14.

In partnership with the Cancer Society and the District Health Board we implemented smokefree signage at our playgrounds and sportsfields.

We work with over 70 active environmental groups who contribute huge amounts of time and labour to our open spaces.

Botanic Gardens

The seismic strengthening of the Begonia House was completed, and the renewal of the Begonia House Terrace paving is expected to be complete in July 2013.

The refurbishment and renewals at the Treehouse have created a much more visitor-friendly information and exhibition space.

Another successful Spring Festival was held, along with the Meet the Curator series and a photographic exhibition at the refurbished Treehouse.

The storm on 13 June felled two historic macrocarpas and severely damaged two historic gums.

We held a very successful photographic competition along side the annual Otari-Wilton’s Bush Open Day. This was well attended with good plant sales and participation in guided walks.

Along with the Otari-Wilton’s Bush Trust and the Wellington Botanical Society we developed a Treasure Trail of Otari’s taonga plant species.

Otari-Wilton’s Bush was reassessed as a ‘Garden of National Significance’ by the Royal New Zealand Institute of Horticulture.

Beaches and coast

We complied with the resource consent requirements for Oriental Bay beach by undertaking sand and structure surveys and carrying out two sand redistributions.

Work began on the replacement of the bearers on the Evans Bay Yacht Club northern boat ramp.

We constructed sand dune protection fencing at Worser Bay and completed sand removal at the sea wall.

Town Belt

The Council approved the Wellington Town Belt Management Plan and drafting instructions for a Wellington Town Belt Bill. The Bill will strengthen the protection of the Town Belt and modernise its governance arrangements under the Town Belt Deed.

The Oruaiti Reserve upgrade was completed and we held a formal opening of the reserve.

Community environmental initiatives

A Natural Environment Forum was held on 23 April for our environmental community with over 200 people attending.

We distributed 28,112 native eco-sourced plants to environmental community groups across the city for planting as part of ecological restoration projects. We distributed 10,000 plants to private residents under the reserve and road reserve planting schemes.

We involved 2757 children with planting projects, in collaboration with Zealandia, World Wildlife Fund and the Zoo.

We ran a hugely successful Wellington Coastal Clean-Up that involved over 500 people and collected over five tonnes of rubbish.

We worked with Victoria University students on environmental research initiatives and signed a Memoranda of Understanding with Victoria University for Growing Graduates, where they are funding an on-going planting initiative on Te Ahumairangi Hill.

Walkways

Key walkway renewals this year included: Johnson Hill Reserve,Te Raikaihau Headland, George Denton Park, Mt Victoria, Eastern Walkway and Te Kopahou Reserve.

A new track – Te Araroa Walkway – was built as part of Spicer Forest. This track was funded in partnership with Meridian Energy as part of the construction of the access road for the Mill Creek Wind Farm.

We supported a number of communities with track renewal and track building works.

Biodiversity

We completed the second year of the south-west peninsula goat control project which is a partnership between Greater Wellington Regional Council, Biodiversity Condition Fund and landowners.

We focused on continuing our pest plant programme in 33 key native ecosystems across the city. We undertook weed surveys in six key native ecosystems and continued to control high priority weeds in high profile parts of the Town Belt.

What it costsTop

Operating Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

2.1.1 Local Parks and Open Spaces¹

Expenditure
7,694
8,052
358
7,961

Revenue
(531)
(479)
52
(1,092)

Net Expenditure
7,163
7,573
410
6,869

2.1.2 Botanical Gardens²

Expenditure
4,510
4,383
(127)
4,444

Revenue
(379)
(446)
(67)
(384)

Net Expenditure
4,131
3,937
(194)
4,060

2.1.3 Beaches and Coast Operations

Expenditure
1,020
1,042
22
1,041

Revenue
(51)
(51)
–
(49)

Net Expenditure
969
991
22
992

2.1.4 Roads Open Spaces³

Expenditure
10,070
9,216
(854)
9,706

Revenue
(694)
(552)
142
(603)

Net Expenditure
9,376
8,664
(712)
9,103

2.1.5 Town Belts⁴

Expenditure
5,070
4,358
(712)
4,285

Revenue
(422)
(209)
213
(914)

Net Expenditure
4,648
4,149
(499)
3,371

2.1.6 Community Environmental Initiatives

Expenditure
389
408
19
421

Revenue
(24)
–
24
(10)

Net Expenditure
365
408
43
411

2.1.7 Walkways

Expenditure
505
511
6
469

Revenue
–
–
–
–

Net Expenditure
505
511
6
469

2.1.8 Biodiversity (Pest Management)

Expenditure
1,123
1,046
(77)
1,111

Revenue
(65)
–
65
(85)

Net Expenditure
1,058
1,046
(12)
1,026

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

2.1.1 Local Parks and Open Spaces⁵

Expenditure
894
925
31
1,893

Unspent portion of budget to be carried forward
N/A
551

N/A

2.1.2 Botanical Gardens⁶

Expenditure
1,065
1,118
53
444

Unspent portion of budget to be carried forward
N/A
320

N/A

2.1.3 Beaches and Coast Operations

Expenditure
116
116
–
168

Unspent portion of budget to be carried forward
N/A
30

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

2.1.5 Town Belts

Expenditure
155
116
(39)
276

Unspent portion of budget to be carried forward
N/A
–

N/A

2.1.7 Walkways⁷

Expenditure
441
339
(102)
337

Unspent portion of budget to be carried forward
N/A
–

N/A

Under budget due to lower depreciation costs.

Over budget due to lower shop revenue and higher labour costs

Over budget as a result of the one-off impact of restructuring costs.

Over budget due to clean-up costs following the severe storm in June.

Under budget due to delays in the planning and consent phase for the Halfway House restoration. Also works funded by the Charles Plimmer bequest at Watts Peninsular have been delayed due to ongoing discussions with central government agencies.

Under budget due to delays replacing paving at the Begonia House – this work is now under-way and expected to be complete in the early part of the 2013 year. Also some delays have occurred in the renewal programme.

Over budget as additional work has been completed in Spicer Forest funded by Meridian Energy.

How we performedTop

We aim to protect Wellington’s ecology and unique natural environment while keeping the city’s open spaces, parks, gardens, beaches attractive, accessible, and safe. We assess our performance by measuring compliance with quality standards and surveying residents’ use of, and satisfaction with, local parks, gardens, beaches and open spaces. We also measure the amount of restorative planting and pest management that takes place.

To measure the standard of the open spaces we provide

Residents’ (%) satisfaction with the quality and maintenance of local parks, gardens and beaches

Source: WCC Residents’ Monitoring Survey 2013

Residents (%) who agree that green open spaces, gardens and beaches provide good value for money

Result: 80% (target: 90%; 2011/12: 94%; 2010/11: 94%).

Source: WCC Residents’ Monitoring Survey 2013

Residents’ (%) satisfaction with the quality and maintenance of green open spaces

Source: WCC Residents’ Monitoring Survey 2013

To measure the utilisation of the open spaces we provide

Residents’ frequency (%) of usage of local parks and reserves (yearly and weekly)

Source: WCC Residents’ Monitoring Survey 2013

Number of visitors to the Botanic Garden

Result: 1,141,398 (target: 1,200,000).

This is a new measure. Visitor numbers to the Botanic Garden include estimates based on last year. The counters have not been working correctly since August 2012. Three new counters were installed in April. Visitor numbers during May and June were 68% better than projected.

Source: Botanic Garden

Residents’ frequency (%) of usage of Botanic Garden (yearly and weekly)

Source: WCC Residents’ Monitoring Survey 2013

Residents’ frequency (%) of usage of beaches and coastal areas (yearly and weekly)

Source: WCC Residents’ Monitoring Survey 2013

Residents’ frequency (%) usage of walkways (yearly and weekly)

Source: WCC Residents’ Monitoring Survey 2013

To measure the standard of the street cleaning service

Street cleaning (%) compliance with quality performance standards

Source: WCC CitiOperations

To measure our efforts to protect and enhance biodiversity and native species health

Total number of native plantings undertaken by the Council

Result: 41,155 (target: 45,000)

Source: WCC Parks and Gardens

Total number of native plants provided by the Council for community planting

Result: 32,162 (target: 30,000)

Source: WCC Parks and Gardens

High value biodiversity sites (%) covered by integrated animal pest control or weed control

Result: 52% (target: 52%)

Source: WCC Parks and Gardens

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

Result: 100% (target: 95%).

Source: WCC Community Networks

2.2 Waste reduction and energy conservation

What we do

Our waste reduction and energy conservation activities contribute to us being

Key projects

What it costs

How we performed

Whakaiti para, hangarua me te pena pūnga

Sustainability is about meeting our needs now without burdening future generations

What we do

Energy efficiency and conservation

Closed landfill aftercare

Waste minimisation, disposal and recycling

Our waste reduction and energy conservation activities contribute to us beingTop

People-centred – Developing funding partnerships with key stakeholders to insulate Wellington homes improves the health and quality of life of Wellington’s residents. Collaboration between the Council and the community to reduce waste and increase recycling promotes community ownership of sustainable management of the environment.

Eco-city – Reduced waste and increased waste recycling and organic composting minimises the use of landfills and promotes the sustainable management of resources. A focus on energy efficiency for the city’s households and businesses will reduce costs and reduce its greenhouse gas emissions. Developing partnerships and encouraging policies for continued development of renewable energy in the city will be crucial for the Council’s Eco-City aspirations.

Dynamic central city – Facilitating greater construction of Greenstar rated buildings in the city centre, energy efficiency retrofits of central city office buildings and businesses as well as the uptake of emerging ‘green’ technologies will allow Wellington to showcase its Eco-City credentials.

Students on the Building Science course at Victoria University carried out energy audits at our branch libraries. We then had a young professional from the Sustainable Building Council collaborate on further research into the students’ findings, and make recommendations to reduce energy use at branch libraries.

Key projectsTop

During the year:

A major part of our focus and as outlined in the Regional Waste Management and Minimisation Plan goes towards improving the diversion of waste from landfills. We look to identify where we can increase the yield of recyclable material.

– This year an estimated 12,000 tonnes of recyclables were diverted from the landfill through the Council domestic kerbside recycling service. 800 tonnes of organic food waste was diverted from landfills through the Council's Kai to Compost food waste collections service, and through the Council compost operations, 8500 tonnes of green waste was processed.

A total of 98 schools, nurseries and other not-for profit organisations are now fully embedded in the Council’s recycling and landfill diversion policies.

Kai to Compost has grown from a few cafes in Wellington's central business district, to an average of 190 wheelie bins of food waste per week collected and diverted from the Southern Landfill. We are expecting to double our current Kai to Compost customer base and volumes from the current 800 tonnes to 1600 tonnes.

Partnering with Envirocomp

We are working in partnership with New Zealand's first nappy composting service, Envirocomp. Nappies as a single use item are a divertible waste stream from landfills, and Envirocomp is a local entity that has provided a network of nappy collection points for Wellingtonians. The service is provided for users who are willing to pay a nominal fee to have nappies recycled, rather than disposed of to landfill. The Council has subsidised the first 5200 nappy recycling bags sold in the city, and have a drop-off point at the Southern Landfill recycling centre.

The Council-run compost operations were selected by Waste Minz to host the site visit for the Waste Minz Mid-Year Round Up 2013. The visit was attended by national representatives from the waste minimisation industry and had a focus on organic waste diversion and the Council’s Kai to Compost food waste collections service.

Energy

This year we participated in an all-of-Government procurement for electricity, and obtained better overall pricing for two categories of supply. Separate contracts for smaller and larger sites commenced in February 2013 and run for two and three years respectively.

Our main effort to reduce electricity use this year centred on lighting. We changed a large number of inefficient lamps in the civic administration building, and in parts of the central library installed more efficient fittings. We also carried out numerous other electricity conservation measures such as correcting problems where equipment was running unnecessarily, and installing a more efficient heating system at the Botanic Garden Treehouse. Eliminating overnight use and good housekeeping at a large building at the Southern Landfill reduced consumption by half and we were able to downgrade the supply to a lower rating category.

The Council partnered with the Energy Efficiency and Conservation Authority (EECA) and the Capital & Coast District Health Board (CCDHB) to fund 220 retrofits of low-income housing in Wellington. The Warm Up Wellington programme was delivered through the Sustainability Trust.

We continued to deliver the Home Energy Saver programme in partnership with Capacity. The programme resulted in over 635 home energy assessments to Wellington households and 364 of these customers installed an energy efficiency measure on the spot (over 680 low energy light bulbs, 255 efficient shower heads and 154 draught-proof measures).

What it costsTop

Operating Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

2.2.1 Waste Minimisation, Disposal and Recycling Management¹

Expenditure
10,711
11,845
1,134
11,244

Revenue
(12,079)
(11,828)
251
(11,962)

Net Expenditure
(1,368)
17
1,385
(718)

2.2.2 Closed Landfills Aftercare²

Expenditure
(728)
479
1,207
(181)

Revenue
–
–
–
–

Net Expenditure
(728)
479
1,207
(181)

2.2.3 Energy Efficiency and Conservation

Expenditure
–
–
–
173

Revenue
–
–
–
–

Net Expenditure
–
–
–
173

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

2.2.1 Waste Minimisation, Disposal and Recycling Management³

Expenditure
488
530
41
1,103

Unspent portion of budget to be carried forward
N/A
933

N/A

2.2.2 Closed Landfills Aftercare

Expenditure
–
–
–
–

2.2.3 Energy Efficiency and Conservation

Expenditure
44
76
32
97

Unspent portion of budget to be carried forward
N/A
19

N/A

Under budget due to receipt of an unbudgeted distribution payment from the Spicer Landfill joint venture, and higher volumes of general waste through the landfill than budgeted.

Under budget as the annual reassessment of future closed landfill monitoring costs resulted in a reduction in the provision which shows as income in our financial statements.

Under budget due to delays in the submission of the resource consent lodgement for the stage 4 extension of the Southern Landfill, and delays to the implementation of the bin trial project.

How we performedTop

We have an active energy management programme that helps us monitor energy use across all of our energy accounts and identify and implement energy savings projects. We have a fleet management programme that is constantly looking to optimise fleet use and also improve driver performance for safety and fuel use outcomes.

We assess energy efficiency activities by measuring city and Council greenhouse gas emissions and Council energy use.

We assess our effectiveness in waste disposal and minimisation by monitoring resource consent compliance and by measuring resident use of, and satisfaction with, waste management activities.

To measure how well we provide and encourage the use of recycling services to divert valuable material from the waste stream

Resident (%) satisfaction with recycling and waste collection

Source: WCC Residents’ Monitoring Survey 2013

Waste diverted from the landfill vs. total waste to the landfill (tonnes)

Note: Diverted material includes kerbside recycling and inflows of soils that are able to be diverted.

Source: WCC CitiOperations

Residents’ (%) weekly usage of kerbside recycling collection service

Source: WCC Residents’ Monitoring Survey 2013

Kerbside recycling collected (tonnes)

Source: WCC CitiOperations

Previously, kerbside recycling combined glass with other recyclable products. Broken glass contaminated the recyclable material which then resulted in low volumes being processed in New Zealand, due to the abrasive deterioration the product caused to the reprocessing machines.

Within the new kerbside collection scheme, the volumes collected are of a higher quality due to glass being segregated at the point of collection into its own recyclable stream. This has allowed paper and glass to be processed in New Zealand – contributing to local employment and our recyclable export market. In most cases recyclables are now contributing to the ongoing costs associated with the provision of the kerbside recycling service.

To measure how efficiently we dispose of waste and its impact on the environment

Energy sourced from the Southern Landfill

Result: 5.2 GWh (target: 8 GWh, 2011/12: 8.3GWh; 2010/11: 7.4GWh)

There was a lack of gas produced in the landfill due to the drought experienced over the summer months. A lack of rainfall means there is no leachate to promote the breakdown of organic matter.

Source: Nova Energy

Residents’ (%) agreement that waste management services provide good value for money

Result: 80% (target: 85%; 2011/12: 78%; 2010/11: 82%).

Source: WCC Residents’ Monitoring Survey 2013

To measure energy use at Council sites

Council corporate energy use (electricity and natural gas)

Properties | Target | Result | Explanation of variance
Council general (now includes all gas and large electricity sites) | No historic data | 18,344,189 kWh |
Council pools and recreation facilities | Decrease from previous year (17,375,246 kWh) |   17,887,367 kWh   | 2012/13 results were above target because of the reopening of the Tawa pool which had been closed for a long period in 2011/13. We also opened a new hydrotherapy pool at Wellington Regional Aquatic Centre and an additional learner pool at Karori.
Main CCOs | No historic data | 9,963,836 kWh | Changed to include Museums Trust, Wellington Venues, Wellington Waterfront and Zoo Trust.

The warmer weather in summer resulted in a higher than normal demand for air conditioning, which resulted in higher electricity use over the third quarter.

With regard to gas use, we implemented a number of savings. A boiler combustion controller proved effective, and the City Gallery was able to greatly reduce its gas use due to the nature of the exhibitions it held. Under the renewals programme, we installed a new efficient condensing boiler at the Begonia House in the Botanic Garden.

To measure the reduction of the Council’s environmental footprint

Council Corporate greenhouse gas emissions (Tonnes CO2 –e)

Note: the table above compares emissions from the following sources over a time series; diesel, petrol, electricity, gas, LPG, flights and Southern Landfill. This does not represent the Council's full corporate greenhouse gas inventory but rather a comparison of emissions sources over time.

We are planning to conduct an audit and/or certification of our emissions inventory in the 2013/14 year to be reported on in the 2013/14 Annual Report. This will use best practice standards for corporate emissions measurement and reporting.

Source: WCC Climate Change Office

Number of carbon credits generated from Council reserves per annum

Result: 149,979 (target: 5,000). In addition to its annual allocation of units for post-1989 forests placed either in the Emissions Trading Scheme or the Permanent Forest Sink Initiative, the Council also received a large quantity of one-off units in 2012/13 relating to its pre-1990 forests.

Source: New Zealand Emission Unit Register account

2.3 Water

What we do

Our water activities contribute to us being

Key projects

What it costs

How we performed

Wai

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

What we do

Water network

Water collection and treatment

Our water activities contribute to us beingTop

People-centred – A reliable and adequate supply of clean and safe water is critical for the health, wellbeing and prosperity of everyone in Wellington.

Eco-city – An efficient water supply network in which waste is minimised and demand is managed is an important part of being an eco-city.

Connected – A reliable and adequate supply of clean and safe water is a core requirement of a connected city in the 21st Century.

Key projectsTop

During the year:

The Hospital Prince of Wales reservoir project is to construct a 35 million-litre buried concrete reservoir that will provide emergency water storage for Wellington Hospital. All Wellington’s bulk water supply pipelines cross major earthquake faults and total disruption to the city’s water supply is possible in the event of a severe earthquake. This reservoir is part of ongoing work to improve Wellington City’s water supply storage in case of an emergency and will be built to modern seismic standards. Preliminary design work including site survey, geotechnical, conceptual option and site seismic assessments have been completed. The resource consent process that includes public consultation is scheduled to commence in the coming year.

Seismic upgrades of the Carmichael (Newtown), Newland No 2, and Johnsonville No 1 reservoirs were completed whilst the Messines Road reservoirs were replaced with new reservoirs of increased capacity, all to improve the resilience of the water supply network. Pipe network renewals were completed in Tasman Street, Karori, Johnsonville, Tawa, Churton Park and in the central business district. Three water pump stations were upgraded in Miramar.

We carried out leak detection work in Johnsonville, Thorndon, Highbury, Karori East and West, Seatoun, Onslow, Brooklyn, Roseneath, Broadmeadows and Hataitai.

What it costsTop

Operating Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

2.3.1 Water Network¹

Expenditure
24,272
23,833
(439)
23,656

Revenue
(1,558)
(32)
1,526
(1,360)

Net Expenditure
22,714
23,801
1,087
22,296

2.3.2 Water Collection and Treatment

Expenditure
13,396
13,472
76
13,012

Revenue
(4)
–
4
(3)

Net Expenditure
13,392
13,472
80
13,009

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

2.3.1 Water Network²

Expenditure
12,170
11,990
(180)
12,223

Unspent portion of budget to be carried forward
N/A
397

N/A

Under budget due to the recognition of unbudgeted vested asset income.

Under budget due to delays in the Hospital Prince of Wales reservoir project.

How we performedTop

We aim to supply safe, reliable drinking water. We measure our effectiveness by monitoring water consumption, residents’ satisfaction with water quality and the water network, compliance with New Zealand Drinking Water Standards and response times for service requests.

To measure the quality of water supplied to residents

Compliance with Drinking Water Standards for New Zealand 2005

Compliance was achieved with the New Zealand drinking water standards for all of the city’s water grading zones.

Source: Capacity Infrastructure Services Ltd

Residents’ (%) agreement that water services provide good value for money

Result: 81% (target: 90%; 2011/12: 84%; 2010/11: 85%).

Source: WCC Residents’ Monitoring Survey 2013

Customer complaints regarding water quality (taste and odour)

Result: 165 complaints (target: fewer than 200, 2011/12: 202; 2010/11: 289)

Source: Capacity Infrastructure Services Ltd

Customer satisfaction (%) with water quality and network service

Source: Capacity Infrastructure Services Ltd

To measure the performance of services that ensure security of supply

Water pressure

Result: 96% of properties had appropriate water pressure ie minimum 250kPa (target 97%; 2011/12: 96%; 2010/11: 96%).

Source: Capacity Infrastructure Services Ltd

Fire hydrants

Result: 100% of fire hydrants tested met New Zealand Fire Service Code of Practice fire-fighting water supply requirements (target: 95%; 2011/12: 100%).

Source: Capacity Infrastructure Services Ltd

Water distribution network – quality grading

Result: all parts of the network retained the grading of ‘a’ to ‘b’ in the Ministry of Health quality grading (target: ‘a’ to ‘b’ grading).

An ‘a’ grading refers to assets that are completely satisfactory with negligible or very low levels of risk.

A ‘b’ grading refers to assets that are satisfactory with very low levels of risk.

A ‘c’ grading refers to assets that are marginally satisfactory with moderate-low risk.

In 2008, the Ministry of Health graded the entire network. Annually, they ensure this grading has been retained by reviewing the Council’s replacement and/or maintenance of water pipes.

Source: Capacity Infrastructure Services Ltd

Response time to services request (%) within one hour of notification

Source: Capacity Infrastructure Services Ltd

Unaccounted for water (%) from the network

Source: Capacity Infrastructure Services Ltd

Unaccounted for water (UFW) is mainly water lost through leaks in the public and private network. It also covers water used in fire-fighting, unmetered Council use, and even theft. Over the past 10 years, UFW has fallen sharply, contributing to an overall reduction in the amount of water Wellington uses.

Residential water consumption (per person per day)

Result: 288 litres per person per day (target: 292 litres per person per day; 2011/12: 282; 2010/11: 297).

Source: Capacity Infrastructures Services Ltd

Total city water consumption during the year

Result: 26.6 billion litres (target: less than 30 billion litres; 2010/11: 28.4 billion litres). Water conservation measures, leak detection and remediation have reduced the total water usage.

Source: Capacity Infrastructures Services Ltd

2.4 Wastewater

What we do

Our wastewater activities contribute towards us being

Key projects

What it costs

How we performed

Parawai

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

What we do

Sewage collection and disposal

Sewage treatment

Our wastewater activities contribute towards us beingTop

People-centred – A safe and reliable wastewater network provides protection against public health risks.

Eco-city – A safe and reliable wastewater network provides protection against environmental harm.

Dynamic central city – A safe, reliable and well maintained wastewater network will function effectively and not cause disruptions to inner city living and business activities.

Key projectsTop

During the year:

Wastewater network renewals were completed at 17 locations throughout the city and nine wastewater pump stations were upgraded.

The Moa Point Wastewater Treatment Plant had a short outfall discharge during a storm in May. This was caused by extremely high levels of suspended solids entering the plant and blocking the step screens. If the short outfall had not been used there would have been significant damage to the wastewater treatment. We have carried out operational changes at the plant to reduce the number of short duration overflows.

Toxic waste dumping occurred in the Karori catchment. Investigations into the source are under-way, and to date effects at the Western Wastewater Treatment Plant have been minimal.

What it costsTop

Operating Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

2.4.1 Sewage Collection and Disposal Network¹

Expenditure
17,277
16,998
(279)
16,315

Revenue
(1,892)
(595)
1,297
(2,780)

Net Expenditure
15,385
16,403
1,018
13,535

2.4.2 Sewage Treatment²

Expenditure
21,877
21,590
(287)
21,847

Revenue
(378)
(657)
(279)
(1,262)

Net Expenditure
21,499
20,933
(566)
20,585

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

2.4.1 Sewage Collection and Disposal Network³

Expenditure
6,882
7,117
236
8,069

Unspent portion of budget to be carried forward
N/A
831

N/A

Under budget due to the recognition of unbudgeted vested asset income.

Variance is due to the consolidation of the Porirua Waste Water Treatment Plant Joint Venture. This variance is partially offset by lower landfill costs as a result the de-watering process reducing the mass of sludge transferred to the landfill, and lower than budgeted depreciation costs.

Under budget due to savings on the Central Terrace sewer renewal, delays to the Beach Street sewer renewal and savings from the UV treatment upgrade due to a change in approach in addressing the treatment of bypass flows.

How we performedTop

Our wastewater activities should protect public health and property without compromising the environment. We measure our effectiveness by monitoring freshwater quality, resident satisfaction with the wastewater network and response times for service requests.

To measure the standard of the wastewater service

Customer (%) satisfaction with wastewater services

Source: Capacity Infrastructure Services Ltd

Response time to service requests (%) within one hour of notification

Result: 67% of requests were responded to within one hour of notification (target: 95%; 2011/12: 96%; 2010/11: 91%).

Transition issues with the new service provider are being addressed. Despite the non-compliance no complaints were received.

Source: Capacity Infrastructure Services Ltd

Residents (%) who agree wastewater services provide good value for money

Result: 79% (target: 75%; 2011/12: 70%; 2010/11: 71%).

Source: WCC Residents’ Monitoring Survey 2013

To measure the impact of wastewater on the environment

Freshwater sites (%) within acceptable faecal coliform counts

Investigations are under-way to determine the reasons for the high faecal counts. There are seven sampling sites we are investigating. To date the sources have not been identified though at some sites they have been narrowed down to a particular area. One site at South Karori Road was due to a leaking sewer main which has now been fixed. Pollution investigations, including structural examinations and dye tests, are continuing.

Source: Capacity Infrastructure Services Ltd

Sewage network – resource consent compliance

Result: 100% compliance5 (target: compliance: 2011/12: 100%)

Source: Capacity Infrastructure Services Ltd

5 This result is based on the last formal confirmation received from GWRC in October 2012. The final confirmation of compliance from GWRC will not be received until after publication of this report.

2.5 Stormwater

What we do

Our stormwater activities contribute towards us being

Key projects

What it costs

How we performed

Wai-ua

The stormwater network keeps people and property safe from flooding

What we do

Stormwater management

Our stormwater activities contribute towards us beingTop

People-centred – A safe and reliable stormwater network and effective maintenance and operation programmes prevent avoidable disruptions to community living and minimise the risks of injury and the risks of damage to property from stormwater.

Eco-city – A safe and reliable stormwater network minimise the impacts – such as erosion – of stormwater on the environment.

Dynamic central city – A safe and reliable stormwater network and effective maintenance and operations programmes allow people to live, work and play in the central city safely and without disruption.

Connected – A safe and reliable stormwater network and effective maintenance and operations programmes reduce the risk of avoidable surface flooding and environmental damage that may affect transport networks.

As a part of the stormwater consent compliance a Stormwater Consultative Committee has met approximately every three months to discuss and provide comment on stormwater issues. The committee is made up of parties who expressed interest during the initial consenting process.

Key projectsTop

During the year:

Two bridges over the Karori Stream were replaced. Work began to renew the stormwater drains in Tasman Street serving the Mt Cook Catchment and the Massey University campus.

A major rainfall event occurred on 6 May 2013 resulting in widespread surface flooding and flooding of 32 residential and commercial buildings. We implemented the Capacity Emergency Management Plan establishing an emergency control centre at our offices in conjunction with the maintenance contractor – CityCare.

The Tacy Street Stormwater pump station performed well in the heavy rain events of May 2013. This was its first real test since the pump station was completed at the end of 2011. It ensured flooding was averted in its catchment during a severe rain storm.

We worked with WREMO (Wellington Regional Emergency Management Office) and Council Emergency Controllers to respond to the 6 May flood event.

We work with stakeholders likely to be affected by construction activities to minimise the effects of investigation and construction activities – for example, investigations to confirm the suitability of a route for a stormwater pipe upgrade through Massey University. The existing drain passes underneath the university and we worked with the university to identify potential routes for its replacement, conducting site investigations outside of examination periods to minimise the effect on students and staff.

What it costsTop

Operating Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

2.5.1 Stormwater Management¹

Expenditure
17,490
17,411
(79)
16,044

Revenue
(3,655)
(48)
3,607
(2,632)

Net Expenditure
13,835
17,363
3,528
13,412

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

2.5.1 Stormwater Management²

Expenditure
2,564
2,584
21
4,001

Unspent portion of budget to be carried forward
N/A
1,208

N/A

Under budget due to the recognition of unbudgeted vested asset income.

Under budget due to delays in the Davis Street culvert strengthening work and delays in the commencement of the Tasman Street and Oban Street stormwater renewal projects.

How we performedTop

Our stormwater activities should protect public health and property without compromising the environment. We measure our effectiveness by monitoring beach water quality, and by resident satisfaction with the stormwater network and response times for service requests.

To measure the standard of the stormwater service

Residents (%) who agree stormwater services provide good value for money

Result: 69% (target: 75%).

Source: WCC Residents’ Monitoring Survey 2013

Customer (%) satisfaction with stormwater network service

Source: Capacity Infrastructure Services Ltd

Response time to service requests (%) within one hour of notification

Result: 72% of requests were responded to within one hour of notification (target: 95%). Transition issues with the new service provider are being addressed. Despite the non-compliance no complaints were received.

Source: Capacity Infrastructure Services Ltd

Number of buildings reported to have been flooded as a result of a less than one-in-50-year rain event

Result: 49 properties flooded (target: no properties flooded).

All of the properties flooded are a result of four significant weather events. Investigations on network capacity are being undertaken to understand cause and potential solutions.

Source: Capacity Infrastructure Services Ltd

To understand the impact of stormwater on the environment

Bathing beaches (%) compliance with Ministry for the Environment guidelines (Green Status)

Source: Capacity Infrastructure Services Ltd

Seawater samples are collected and analysed for Enterococci bacteria, in accordance with GWRC and the Ministry for the Environment requirements. Samples collected within 48 hours of a heavy rain event can read high due to contaminants entering the stormwater network.

Stormwater resource consent compliance (includes the monitoring of overflows, stormwater outfall discharge and coastal water quality)

Stormwater resource consent compliance has been achieved.6

Source: Capacity Infrastructure Services Ltd

6 This result is based on the last formal confirmation received from GWRC in October 2012. The final confirmation of compliance from GWRC will not be received until after publication of this report.

2.6 Conservation attractions

What we do

Our conservation attraction activities contribute towards us being

Key projects

What it costs

How we performed

Ngā painga kukume Papa Atawha

Nature is one of Wellington’s biggest attractions

What we do

Wellington Zoo

Zealandia

Our conservation attraction activities contribute towards us beingTop

People-centred – These activities inform and educate residents and visitors about conservation. They tell the story of our past, of our special wildlife, and of exotic flora and fauna and attract people to the city.

Eco-city – These facilities play important conservation roles, protecting native and exotic flora and fauna.

Wellington Zoo became the world’s first carboNZero certified zoo, thanks to a unique and successful partnership with Beca and the Department of Internal Affairs.

Wellington Zoo had a five-year commitment to reducing its carbon footprint, Beca provided technical expertise in attaining carboNZero certification, and it was made possible by Department of Internal Affairs funding. In addition to being the major donor for the Asia Precinct, ASB Bank funded the cost of the certification itself and the required carbon offsets.

Key projectsTop

During the year:

Wellington Zoo

The Zoo Trust celebrated its tenth anniversary.

The Asia Precinct encompassing a new Sun Bear exhibit and revamped Sumatran Tiger exhibit was officially opened in September 2012 by Mayor Celia Wade-Brown.

The Green Zoo, Green You sustainability exhibit was also opened by the Mayor in September 2012. This space allows the Zoo to share its sustainability journey with its visitors.

Hero HQ, the Zoo’s reptile and invertebrate exhibit opened in April 2013.

The Zoo was the proud recipient of the Vibrant Gold award at the Gold Awards in June 2013. In addition, Kamala’s Pavilion won a 2012 Wellington Architecture Award for Public Architecture and the NZ Architecture Award for Small Projects in May 2013, and the Asia Precinct was a finalist in the NZ Institute of Builders Awards in June 2013.

In addition to the support of the Council and ASB Bank, during the year the Zoo received a number of donations and bequests, including $300,000 from Pub Charity for the next major capital project, Meet the Locals, and a bequest for $100,000 from a staff member, which was used to purchase an x-ray digital imager for The Nest Te Kōhanga. This will greatly improve animal care outcomes.

Wellington Zoo’s first successful breeding of Grand Skinks also took place, with three Grand Skinks born – a first for zoo holders in New Zealand. Wellington Zoo holds part of the insurance population of this critically endangered animal for the Department of Conservation.

In conjunction with Massey University, Wellington Zoo runs the Masterate Programme in Zoo Animal and Wildlife Health. The Zoo hosts four veterinary residents each year as they complete placements on the programme. This is the only programme of its type in the world and builds veterinary capability for New Zealand. The Holdsworth Family Trust has agreed to support the Zoo’s financial share of the Veterinary Residency Programme at The Nest Te Kōhanga.

Zealandia

In December 2012 the Council approved operational funding and a new partnership model with the Karori Sanctuary Trust.

Zealandia have secured a Regional Amenities Fund grant for a joint project with Wellington Zoo to improve interpretation and the visitor experience at environmental attractions across the region.

Zealandia, Wellington City Council, Greater Wellington Regional Council, Department of Conservation, Wellington Zoo, Conservation Volunteers, Wellington Natural Heritage Trust, WWF and SPCA are working together on developing a project focusing on a halo area around Zealandia. This is to provide a safe habitat for the native birds flying in and out of the sanctuary. This project is also being consulted on as part of Our Capital Spaces: a draft open spaces and recreation framework for Wellington.

Twenty four kaka fledged 83 kaka chicks, the highest number of pairs and chicks using nest boxes in a season to date.

What it costsTop

Operating Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

2.6.1 Conservation Visitor Attractions

Expenditure
5,354
5,378
24
4,885

Revenue
–
–
–
–

Net Expenditure
5,354
5,378
24
4,885

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

2.6.1 Conservation Visitor Attractions¹

Expenditure
2,144
2,063
(81)
2,105

Unspent portion of budget to be carried forward
N/A
1,177

N/A

Under budget due to the rephasing of the 'Meet the Locals' upgrade project at Wellington Zoo.

How we performedTop

We support the Zoo and Zealandia for their conservation roles and for their status as nature-based visitor attractions. We assess their success on the basis of visitor numbers and at Zealandia, the education programme attendees.

To measure the success of our investments in promoting the city

Zoo visitors

Source: Wellington Zoo Trust

Zealandia visitors

Strategies around the visitor experience, pricing and membership benefits have been formulated to address declining visitation numbers and these strategies are expected to be launched in the spring of 2013.

Source: Zealandia

Zealandia – education programme attendees

Result: 7645 (target: 5281; 2011/12: 6556; 2010/11: 7068).

A new school holiday programme was introduced and ran successfully during the year. Also work began on a pilot programme with Kelburn School getting involved in the halo project, which aims to involve the community in conservation through pest management and monitoring.

Note: This result is only the number of visits by schools. Next year we will report on the total educational visits (which includes pre-schoolers and university students, and the target will be updated to reflect this).

Source: Zealandia

Economic Development

Whanaketanga ōhanga

3 Economic Development Whanaketanga ōhanga

3.1 City promotions and business support

What we do

Our city promotions and business support activities contribute towards us being

Key projects

What it costs

How we performed

Ngā whakatairanga tāone me ngā āwhina pakihi

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

What we do

Tourism promotions (Positively Wellington Tourism)

Events attraction and support

Convention venues (Positively Wellington venues)

Retail support (free weekend parking)

Regional and external relations

Grants and creative workforce

Destination Wellington

Our city promotions and business support activities contribute towards us beingTop

People-centred – Our activities connect people with places and ideas, make Wellington an attractive place to live and do business, and attracts tens of thousands of visitors to the city every year.

Connected – Major events and our performance spaces and conference venues connect us to artists and events of national and international significance, and Wellington’s story is connected to the world by Positively Wellington Tourism’s marketing and promotion. Event-based websites and social media platforms are connecting people to what is on and how they can be there.

Dynamic central city – Our events, festivals, spaces and venues anchor Wellington’s appeal as a place of creativity, exploration, innovation and excitement. Iconic events such as the World of WearableArt® awards show (WOW), the International Festival of the Arts and the Hertz Sevens are world class and an integral part of our Dynamic Central City.

We worked closely with Wellington Waterfront Limited to deliver a number of successful events on the waterfront, which included New Year celebrations, the Hertz Sevens Rugby Tournament, Homegrown, the Pinot Noir Festival, AMI Round the Bays, Dragon boating, the Asian Night Market, Fringe Festival events, and Chinese New Year.

Key projectsTop

During the year:

Positively Wellington Tourism (PWT)

The Hobbit: An Unexpected Journey premiere was a key focus area during the first half of the year which included hosting the worldwide premiere. Around 60 of the 100-strong media contingent travelled from over 20 countries in addition to Australian and domestic journalists. A report commissioned by the Council estimated the world premiere of The Hobbit contributed over $11.5 million to Wellington's economy during the premiere week.

The fourth annual Visa Wellington On a Plate was enjoyed by 20,500 festival-goers who participated in 106 festival events and dined at 108 DINE restaurants over the 17 days of the festival. New spend by visitors outside of the Wellington region generated $1.41 million dollars in direct spending.

PWT brought the Spoil Yourself in Wellington campaign to life in our biggest visitor market by ‘Spoiling Auckland’. The experiential and digital campaign – run in partnership with Air New Zealand, Mojo and Whittaker’s – saw a team descend on Auckland to surprise locals with a range of gifts from Wellington. The campaign resulted in record Auckland online traffic with over 28,000 visits to the campaign landing page on WellingtonNZ.com.

PWT launched a Winter Events campaign to promote winter weekend travel to Wellington and in Australia PWT’s campaign saw a $1million joint venture campaign with Tourism New Zealand take place focusing on creating awareness of Wellington and its neighbouring regions – Wellington, Wairarapa, Hawke’s Bay and Marlborough – as the food and wine centre of New Zealand.

Events attraction

WOW was once again a success with all performances selling out and more than 30,000 people from out of town attending the event. WOW has signed a nine year contract to remain in Wellington. WOW makes a huge economic contribution to Wellington with the last economic impact study estimating $15.1 million spent in the city, and $4.9 million of that going directly to the city’s retailers. In addition to this it also brings further jobs to the city, employing over 400 people each year for the production.

The red-carpet world premiere of The Hobbit: An Unexpected Journey was on 28 November. The Council ran a number of events including the five-day Hobbit-inspired Artisan Market in Waitangi Park with 19 stallholders plus food and drink outlets. There were outdoor public screenings of the Lord of the Rings trilogy, also at Waitangi Park.

We hosted the Hertz Sevens which was again a great success with over 21,000 visitors in Wellington specifically for the event. The 2013 tournament was the fourth leg in the HSBC Sevens World Series, and featured 16 international teams.

Wellington Fashion Week ran in early April. This was the second time the event has been held and this year almost 40 designers, including up-and-coming local brands took part.

The historic Australian Football League match between St Kilda and Sydney was played at the Westpac Stadium on ANZAC Day with over 22,000 supporters attending the match.

The Council, in association with the Wellington Returned Services Association (RSA) ran a series of ANZAC Day events on Thursday 25 April. The dawn parade, dawn service and wreath laying ceremonies have become popular events and draw attendance from a large cross-section of the Wellington community. Over 7000 members of the public attended the dawn parade and service, joined by the New Zealand Prime Minister and two Australian Federal Government Ministers.

Wellington hosted New Zealand’s Hottest Little Jazz Festival from 6-8 June. The festival was headlined by eight-time Grammy winner Chucho Valdés and two-time Grammy winner Cassandra Wilson. Over 9000 people enjoyed over 50 shows held in a number of the city's music venues.

The LUX Wellington Light Festival was held in late June, and despite the stormy weather 14,000 people enjoyed 18 artworks that use light, set up along the waterfront and in back alleys in the CBD.

We continued to support other events such as the Oceania World Cup Orienteering Festival, the Hertz Sevens Parade, the Homegrown music festival, Nitro Circus, State Capital Classic Ocean Swim, Pinot Noir 2013, Contact National Triathlon, and the New Zealand-England test cricket match at the Basin.

Positively Wellington Venues (PWV)

PWV delivered over 950 events across all venues. Performance and exhibitions included: Ed Sheeran, Neil Young, Glenn Miller, Madame Butterfly, Phantom of the Opera, Cinderella (St James Theatre), Hairspray (Opera House), Agatha’s Christie’s The Mousetrap, and Royal NZ Ballet’s production of Giselle.

PWV received international ISO Quality and Environmental Management certification across all its venues. They are currently the only New Zealand venues management organisation to have received this certification across all their venues.

Regional and external relations

The city received 34 delegations over the year from Japan, China, Singapore, Korea, South East Asia, Thailand and Australia. We had eight outbound delegations to Singapore, UK, China, USA and Japan.

The Memorandum of Cooperation for Strategic Economic Partnership between the Zhejiang Province and the Wellington region was signed.

Zhejang Radio and Television Group filmed a documentary entitled Beautiful Wellington.

We celebrated 25 years of our sister-city relationship with the Chinese city of Xiamen with a visit to Wellington by Xiamen Deputy Mayor Kang Tao and city officials, and the opening in Wellington of Charming Xiamen - a photography exhibition.

We helped Wellington companies do business with our sister/friendly cities overseas. The Formary connected with a local partner in Tianjin who has created an upholstery fabric that blends Chinese rice production waste product with New Zealand wool. The fabric will be sold in the USA. The Village Goldsmith from Wellington signed a deal to supply designs to Chinese bridal jewellery chain Hiersun.

The Council won the 'Best Cultural, Sport or Recreation project' at the 2013 Sister Cities Awards for the Japan Festival.

We organised and hosted the Kia Kaha! Japan Festival of Wellington 2012. More than 30 delegates from Sakai visited Wellington to take part in the festival. Approximately 30,000 visitors attended festival events.

We held the India Workshop: Wellington/Delhi Strategy to discuss a possible city-to-city relationship with Delhi. The workshop attendees included New Zealand stakeholders, the High Commission of India, universities and local India organisations.

We supported the Wellington Chinese New Year Festival by organising the Shenzhen Song and Dance Troupe to visit Wellington and perform. The performance added a new element to this dynamic and exciting festival.

Destination Wellington

The Council established a programme of work to attract, retain and grow investment, to create jobs and to support sustainable economic growth. A collaborative team was formed by involving the Council, Positively Wellington Tourism and Grow Wellington to run the programme. The roles of the three parties are as follows:

PWT has a responsibility to raise Wellington’s profile in target markets and support attraction efforts through marketing activities.

Grow Wellington is to identify and target business, talent, students and investment, and convert opportunities into business deals.

The Council is to coordinate the overall programme and provide market analysis and intelligence.

Some key year one achievements include:

Extensive research undertaken by PWT which documents stakeholders’ perceptions of Wellington.

A targeted Wellington education strategy to attract international students and develop the education offering in the city.

A competitor city audit of 25 competitor cities, their economic development agencies, sectors of focus, incentive offerings and promotion activities, and the cities’ rankings on international indices.

Although the emphasis of the programme in year one has been on background research, strategy development and campaign development, the programme had an early success with the relocation of a contact centre from Australia to the CBD. The contact centre is already employing 85 staff, and has forecast to increase to 200 jobs next year, bringing in an additional $10 million in economic value to Wellington.

Business improvement districts

In March, the Council approved a business improvement district (BID) policy which provides a framework for establishing and implementing BIDs in the city. We started working with the first BID in Miramar and this work is ongoing.

As part of a review of our grant funds the Council agreed that the Economic Grant Pool from 1 July 2013 will be focussed for a two-year period on the development of BIDs in the city.

We developed an action plan for the Open for Business programme of the Economic Development Strategy. As part of this ‘can-do’ programme we will engage with key businesses across the city to further our understanding about the challenges and opportunities they face.

What it costsTop

Operating Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

3.1.1 Tourism Promotion

Expenditure
5,740
5,740
–
5,740

Revenue
–
–
–
–

Net Expenditure
5,740
5,740
–
5,740

3.1.2 Convention Venues¹

Expenditure
17,952
4,515
(13,437)
3,439

Revenue
(14,659)
–
14,659
(410)

Net Expenditure
3,293
4,515
1,222
3,029

3.1.3 Retail Support (free weekend parking)

Expenditure
1,281
1,286
5
16,170

Revenue
–
–
–
(13,415)

Net Expenditure
1,281
1,286
5
2,755

3.1.4 Grants and Creative Workforce²

Expenditure
1,512
1,718
206
1,826

Revenue
(40)
–
40
(50)

Net Expenditure
1,472
1,718
246
1,776

3.1.5 Events Attraction and Support³

Expenditure
4,923
4,631
(292)
4,922

Revenue
(96)
–
96
(344)

Net Expenditure
4,827
4,631
(196)
4,578

3.1.6 Regional and External Relations

Expenditure
643
514
(129)
590

Revenue
(40)
–
40
(9)

Net Expenditure
603
514
(89)
581

3.1.7 Destination Wellington

Expenditure
982
1,000
18
–

Revenue
–
–
–
–

Net Expenditure
982
1,000
18
–

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

3.1.2 Convention Venues⁴

Expenditure
3,313
3,699
386
212

Unspent portion of budget to be carried forward
N/A
3,531

N/A

Under budget due to receipt of unbudgeted sub-tenant revenue upon the transition of St James Trust assets to the Council, as well as lower depreciation than budgeted as a result of the 2011/12 asset revaluation process. Revenue and expenditure variances as a result of the consolidation of Wellington Venues Ltd.

Under budget due to lower expenditure on promotional advertising and unbudgeted income for CBD WiFi.

The use of internal labour for The Hobbit premiere has resulted in a higher organisational overhead allocation than budgeted for this activity.

Under budget due to delays in the start of temporary venue fit-out due to the need to complete initial earthquake and pile strengthening work, and delays in completing deferred maintenance at the Opera House.

How we performedTop

We measure our contribution to the development of Wellington as an events hub and tourist destination by monitoring the number of visitors to the city, attendees at key facilities and by the strong return on events investment. By supporting strategic projects and by representing the city’s interests to Central Government and overseas, we aim to improve Wellington’s economic competitiveness. To assess success, we monitor the projects we are involved in and support.

To measure the success of our investments in promoting the city

International visitors – guest nights

International visitor room nights decreased to 667,760 in the year to April 2013, a decrease of 13.6%. (target: maintain international visitor nights).

There is a continuing decline in visitors from the UK and US markets. This decline is offset somewhat by growth in visitors from China, but these visitors tend to stay for shorter periods in New Zealand.

Source: Positively Wellington Tourism

Average length of stay – international and domestic visitors

Result: 2.04 nights (target: 2 nights; 2011/12: 2.05; 2010/11: 1.96)

Source: Statistics New Zealand

New Zealand market visitors

Domestic visitor room nights increased by 4.4% to 1,373,613 for the year to April 2013, compared to the same period in 2012 (target: increase by 2% on previous year).

The Some Like it Hot summer campaign (led with a ‘Kids Stay Free’ hotel offer), Game Masters at Te Papa and other events over the summer led to December and January being record months in terms of commercial guest nights, with an 8.7% growth in the domestic market across the two-month period.

Source: Positively Wellington Tourism

Positively Wellington Tourism – partnership funding

The Council’s funding amounted to 49% of total income (target: maintain the Council's funding at less than 50% of total income; 2011/12: 48%; 2010/11: 50%).

Source: Positively Wellington Tourism

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

There is no target for this measure.

Source: WCC International Relations

To understand the reach of events and promotion activities

Wellington venues occupancy

Result: 953 hire days (target 1032).

Source: Positively Wellington Venues Ltd

Estimated attendance at Council supported events

Result: 549,128 (target: 500,000).

Source: WCC City Events

To measure the success of our investments in economic development

Residents’ satisfaction (%) with Council supported events and festivals

Result: 90% (target 95%).

Source: Residents' Monitoring Survey

Events Development Fund – ratio of spend to economic impact

Major ticketed events attracted significant visitor numbers and economic benefit. We met our overall goal of economic benefits outweighing costs by a ratio of at least 20:1. We achieved 24:1.

Source: WCC City Events

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

Result: 100%

In 2013/14 criteria for this fund will be aligned to support community economic development projects wanting to establish local BIDs.

Source: WCC Community Networks

To measure the standard of the provision of parking

On-street car park turnover rates – weekdays and weekends

Source: WCC Infrastructure

Cultural Wellbeing

Oranga ahurea

4 Cultural Wellbeing Oranga ahurea

4.1 Arts and cultural activities

What we do

Our arts and culture activities contribute towards us being

Key projects

What it costs

How we performed

Ngā mahi toi me ngā ngohe ahure

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

What we do

Galleries and museums

Visitor attractions (Te Papa and Carter Observatory)

Arts and cultural festivals

Cultural grants

Access and support for community arts

Arts partnerships

Regional Amenities

Our arts and culture activities contribute towards us beingTop

People-centred – They shape Wellington’s sense of place and identity. They celebrate creativity and ideas and increase our understanding of culture and history. By enabling Wellington’s creative communities to thrive, they promote inclusive, tolerant and strong communities.

Connected – They provide ideas and places where people can connect, share what is common and explore what is different and new. They connect the present with the past and both with the future. Through events and collaborations they connect us with people, places and ideas here and abroad.

Dynamic central city – They enhance Wellington’s vibrancy as a diverse and eventful place where people want to live work and play.

Key projectsTop

During the year:

The Museum of Wellington City & Sea was chosen by The Times of London in its Sunday edition as one of the 50 top museums in the world; the only New Zealand museum to be placed on the list. This accolade has been followed up with popular recognition through the 2013 Trip Advisor Traveller’s Choice Award naming our museum as one of the top 25 museums in the South Pacific and one of the top 10 museums in New Zealand.

Carter Observatory held public activities for the solar eclipse on 14 November, the landing of Curiosity Rover on Mars and Matariki, and the launch of a new planetarium show Wildest Weather in the Solar System.

The City Gallery programme produced some memorable experiences for visitors such as Len Lye: Kaleidoscope and The Sophist’s Mirror: Ben Cauchi.

Strengths of partnerships

Many of the programmes and exhibitions that Wellington Museums Trust institutions deliver are through partnerships or collaborations with other organisations that optimise our strengths and our city and harbour locations. Prominent examples this year include the Capital E National Theatre for Children and the New Zealand Symphony Orchestra partnership that transformed myth into legend in a new collaborative work for young people: Skydancer based on Whiti Ihimaera’s novel; and Museum of Wellington City & Sea partnered with the Film Archive to produce Welcome to Wellington: 100 years of Wellington Moments a new Tall Screen film.

Summer City ran early in the year, with over 80 events held. Highlights included ASB Gardens Magic, Films by Starlight, Pasifika Festival, Waitangi Day celebrations, Island Bay Festival, Bowl-a-rama Skate Festival, Chinese New Year parade, NZCT Dragon Boat Festival, the Newtown Festival, and the South East Asian Night Market.

The Summer Street Life project continued from its pilot to weekends and early evenings. This was an initiative to have bands, performers and musicians perform in public spaces around the city in December and January, adding vibrancy to the CBD both in the lead-up to Christmas and through into the New Year.

This year’s Matariki celebrations were assisted with collaboration from 20 organisations. A particular focus was on waka, navigation and voyaging. The waka Te Matau a Maui (double hull waka) arrived from Napier, sailed by Ngāti Kahungunu, and was welcomed into Wellington Harbour by mana whenua Taranaki Whānui and the Council to mark the beginning of Matariki.

Africa Day was celebrated on a larger scale than previously to mark the 50th anniversary of African Unity. The rich African culture was demonstrated through performance, fashion, crafts and food. A fashion show was held at Te Papa in the lead-up to the event. Largely organised by the newly formed African Community Council of Wellington and supported by the Council's City Events team as well as Police and the Department of Internal Affairs.

Cultural grants

We provided grants to support community-based arts and culture organisations and initiatives – such as Arts Access Aotearoa, Ocean Wave Community Dance Project, Vincent’s Art Workshop, Creative Capital Arts Trust, Wellington professional theatres, and many more. Some were one-off grants for projects that meet our criteria, others longer-term grants to the cultural sector that contribute to our strategic objectives.

We supported one resident artist (from Asia) and one exchange artist (a Wellington-based artist going to Asia) through the Wellington Asia Residency Exchange (WARE). This programme is provided in partnership with the Asia NZ Foundation.

The Wellington Sculpture Trust, with assistance from the Council, launched two new permanent sculptures:

Ngā Kina by Michel Tuffery – a sculpture located at the entrance of Kumutoto Stream on the Wellington waterfront.

Woman of Words, a Katherine Mansfield memorial sculpture by Virginia King located on the edge of Midland Park and Lambton Quay.

We continued to work with the Wellington International Airport, Studio Pacific Architecture, the Port Nicholson Block Settlement Trust and Te Rūnanga o Toa Rangatira Incorporated to deliver Naïve Melody a new public artwork by Nathan Pohio located in the international arrivals area at Wellington Airport.

We supported temporary public art projects through the Public Art Fund including: Enrapture by Tape Art New Zealand, an evolving five-day tape art mural series in Civic Square; Public Sculpture Tables by Mary Whalley, held at Aro Valley Park, Jack Illot Green and Glover Park; and Brides – a dress-up conversation by Jo Randerson/Barbarian Productions and Anya Tate-Manning.

We facilitated relationships that allow art and business collaborations, for example supporting the Urban Dream Brokerage – an agency that brings property managers and the creative industry together through the creative use of vacant spaces in Wellington.

Community arts and partnerships

In partnership with local communities, we facilitated the development of three mural projects – Bay Road, Kilbirnie; Granville Flats, Berhampore; and Tawa Youth Mural beside the skatepark.

We developed a Mural Toolkit, a how-to-guide to making a mural. This is primarily an online resource for artists, businesses, and organisations wanting to develop a mural. The toolkit includes information about funding, health and safety and evaluating projects.

Artsplash, Wellington’s Young People’s Arts Festival, had a total of 7528 children from 103 primary and intermediate schools participate and present their art to an audience of 21,000.

An external evaluation of the ‘Ocean Waves’ Community Arts Project detailed the successful delivery of this community dance project in the ASB Sports Centre in Kilbirnie.

We initiated Paint Up, a pilot mural project in partnership with Berhampore and Newtown Schools, Eastern Southern Youth Trust and two experienced artists. Paint Up aims to upskill and empower young people through the design and painting of a mural in their neighbourhoods and to raise awareness of the social and economic impacts of tagging.

Toi Pōneke continued to be well used with the Gallery presenting 12 exhibitions across a wide range of contemporary artists and curators. Toi Pōneke also entered into a partnership with Whitireia New Zealand to provide an artist-in-residency programme at the art centre in 2013.

Regional amenities

We led the cross-council Wellington Regional Amenities Fund Working Party. Following decisions by Wellington City, Hutt and Upper Hutt City Councils, and Kapiti Coast and Masterton District Councils, to include funding in their 2012-22 Long-term Plans and Annual Plans, the working party drafted a resolution and terms of reference for a joint committee of the participating councils to govern the fund and approve applications.

In the first year, the joint committee has finalised the priorities and criteria and allocated funding to four projects which strongly delivered to the regional priorities. The four projects are:

The Winter of Art programme at Te Papa with a range of international and local art exhibitions and providing tours to other galleries in the region.

The opening night event of the 2014 New Zealand Festival of the Arts.

A visitor experience development project for environmental attractions in the region.

The 2014 ‘On ANZAC Eve’ concert which is part of the WW100 commemoration programme.

The five contributing councils have confirmed their commitment to the second year of the fund through their 2013/14 Annual Plans.

What it costsTop

Operating Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

4.1.1 City Galleries and Museums

Expenditure
8,339
8,401
62
8,243

Revenue
–
–
–
–

Net Expenditure
8,339
8,401
62
8,243

4.1.2 Visitor Attractions (Te Papa/Carter Observatory)

Expenditure
3,023
3,053
30
3,032

Revenue
–
–
–
–

Net Expenditure
3,023
3,053
30
3,032

4.1.3 Arts and Cultural Festivals

Expenditure
2,488
2,509
21
2,288

Revenue
(310)
(398)
(88)
(306)

Net Expenditure
2,178
2,111
(67)
1,982

4.1.4 Cultural Grants

Expenditure
853
898
45
829

Revenue
–
–
–
(1)

Net Expenditure
853
898
45
828

4.1.5 Access and Support for Community Arts

Expenditure
662
681
19
649

Revenue
(79)
(129)
(50)
(127)

Net Expenditure
583
552
(31)
522

4.1.6 Arts Partnerships

Expenditure
1,930
1,762
(168)
1,751

Revenue
(694)
(520)
174
(491)

Net Expenditure
1,236
1,242
6
1,260

4.1.7 Regional Amenities Fund

Expenditure
643
594
(49)
–

Revenue
(32)
–
32
–

Net Expenditure
611
594
(17)
–

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

4.1.5 Access and Support for Ccommunity Arts

Expenditure
10
40
30
117

Unspent portion of budget to be carried forward
N/A
–

N\A

How we performedTop

We aim to support a wide range of arts and cultural festivals. To assess our contribution we monitor the number of events and groups supported and measure attendance and satisfaction with events and festivals.

We are committed to working in partnership with, and securing the long-term future of, the arts sector in Wellington. We demonstrate this through our commitment to Toi Pōneke, and measure users’ satisfaction.

We support the Wellington Museums Trust to deliver high quality gallery and museum experiences and events. We measure performance through visitor numbers, awareness of and experience at the various galleries and museums, and the average subsidy per customer. For results, see ‘Wellington Museums Trust’ on page 192 in the Council-Controlled Organisations section of this report.

To measure the effectiveness of our arts and culture support activities

Satisfaction with Council supported arts and cultural festivals

Source: WCC Residents’ Monitoring Survey 2013

Customer satisfaction (%) with the NZ International Arts Festival

The NZ International Arts Festival is held biannually so there are no results for this year. The target for next year 2013/14 is 80% satisfaction.

Total tickets sold (#) to the NZ International Arts Festival and the proportion sold to the customers outside the region

The NZ International Arts Festival is held biannually so there are no results for this year. The target for next year 2013/14 is 130,000 tickets sold with 30% to customers outside the region.

Economic contribution ($) the NZ International Arts Festival makes to the city’s economy (new spend)

The NZ International Arts Festival is held biannually so there are no results for this year. The target for next year 2013/14 is that the overall economic impacts for the 2014 festival will be at least $40 million of new spend.

User satisfaction (%) with Toi Pōneke facilities and services

Result: 82% of users were satisfied with Toi Pōneke facilities and services (target: 90%; 2011/12: 86%; 2010/11: 90%).

Source: Toi Pōneke Customer Satisfaction Survey 2013

Cultural grants – % of applicants who are satisfied with support and advice received from the Council

Result: 73% of applicants were satisfied with the support and advice received from the Council (target: 95%).

Source: WCC Community Networks

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

Result: 97% (target: 95%).

Source: WCC Community Networks

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

Result: 100% (target: 90%).

Source: WCC Community Networks

To understand the reach of our arts and culture support activities

Te Papa visitors (by overseas visitors and NZ visitors from outside the region)

Source: Te Papa

Total visits to museums and galleries (including Carter Observatory)

Result: 644,411 (target: 620,000)

Source: Wellington Museums Trust

Arts and cultural festivals estimated attendance

Source: WCC City Events

Venues subsidy – total number of performers and attendees at supported events

There was a total of 28,523 performers and 150,346 attendees at supported events. There was no target for this measure, however next year the target will be to increase on this year’s results.

Source: WCC City Events

Cultural grants – % first-time applicants who are successful

Result: 44% (target: 50%).

Source: WCC Community Networks

Number of artists involved in supported art projects delivered through the Public Art Fund

A total of 39 artists were involved in supported arts projects through the Public Art Fund. There is no target for this measure.

Source: WCC City Arts

Social and Recreation

5.1 Recreation promotion and support

5.2 Community participation and support

5.3 Public health and safety

Pāpori me te hakinakina

5 Social and Recreation Pāpori me te hakinakina

5.1 Recreation promotion and support

What we do

Our recreation and support activities contribute towards us being

Key projects

What it costs

How we performed

Ngā rauhanga hapori

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

What we do

Swimming pools

Sportsfields

Synthetic sportsfields

Recreation centres

Recreation partnerships

Recreation programmes

Playgrounds

Marinas

Golf course

Our recreation and support activities contribute towards us beingTop

People-centred – Access to recreation opportunities is important for people’s health and wellbeing. Our recreation facilities provide a wide range of health and wellbeing benefits to the people who use them.

Connected – Recreation and sport activities also bring people together, strengthening social cohesion, and by offering a wide range of facilities, the city becomes a more appealing place for people to live.

The team at ASB Sports Centre have continued to build partnerships with sports governing bodies, regional sports organisations and local clubs in order to increase the opportunities for local people to participate in a wide range of sports and activities.

Key projectsTop

During the year:

We opened the new Hydrotherapy Pool at the Wellington Regional Aquatic Centre; Tawa Pool was re-opened following a 12-month closure for earthquake strengthening and construction of a new roof. We also opened a new Teaching Pool at Karori Pool and commenced work on the extension to Keith Spry Pool.

The Wellington Regional Aquatic Centre hosted: North Island Diving Championships, NZ Age Group Swimming Championships, NZ Junior Swimming Championships, Wellington Long Course Championships, U18 Underwater Hockey Championships, National Surf Lifesaving Championships and NZ Short Course Championships.

We completed the replacement of the Newtown Park running track and received a class 2 certification from the International Association of Athletics Federation.

Following a number of public meetings, a resource consent application was lodged for the proposed artificial sportsfield and new multi-sport building at Alex Moore Park in Johnsonville. Construction of the artificial sportsfield is expected to start in October/November 2013 with completion by April 2014. We completed construction of a full size artificial sportsfield at St Patrick’s College to which we contributed 50 percent of the construction cost.

Funding was secured from Sport New Zealand to develop a sportsfield strategy for the Wellington region. The strategy is due for completion later in 2013 and will help steer the future provision of sportsfields in the region for the next 20 years.

A number of significant sports events have been delivered at the ASB Sports Centre such as the National Handball Championships, National Futsal Club Championships and Under 15 National Basketball Championships, and the Centre received a Highly Commended award from the New Zealand Recreation Association under its Outstanding Project category, along with a number of architecture awards.

In conjunction with Sport New Zealand and the Royal Port Nicholson Yacht Club we developed the Wellington Ocean Sport Programme. We also negotiated a new contract with Sport Wellington to deliver the Sports Talent Development Programme and received partnership funding from the New Zealand Community Trust of $400,000 for targeted events and sport and recreation programmes.

We renewed the playground equipment at John Walker Park, Izard Park and Paddington Grove play areas.

We received Kiwisport funding to deliver Ki-o-rahi programmes to 2000 school children in the city. In addition to this we have received funding for three years from Sport New Zealand to further develop the sport of Ki-o-rahi within the city.

We have continued to deliver our Push Play trailer service to families, groups and organisations to enable them to take part in active recreation within their own community. We also delivered eight ‘Push Play in the Park’ events at parks around the city.

In conjunction with Eastern Suburbs Youth Trust, Sport Wellington, Zumba Fitness and New Zealand Community Trust we delivered seven recreation activity events under the title Summer in Strathmore and seven under the banner Summer in Berhampore over the course of the summer.

We completed the upgrade to the entrances at Clyde Quay Boat Harbour by installing new handrails and steel capping to the stairs, and completed our maintenance programme at Evans Bay Marina.

What it costsTop

Operating Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

5.1.1 Swimming Pools¹

Expenditure
18,866
18,562
(304)
18,095

Revenue
(6,827)
(7,704)
(877)
(6,481)

Net Expenditure
12,039
10,858
(1,181)
11,614

5.1.2 Sportsfields

Expenditure
3,447
3,429
(18)
3,581

Revenue
(288)
(342)
(54)
(320)

Net Expenditure
3,159
3,087
(72)
3,261

5.1.3 Sportsfields (Synthetic)

Expenditure
1,028
1,094
66
1,171

Revenue
(389)
(393)
(4)
(338)

Net Expenditure
639
701
62
833

5.1.4 Recreation Centres²

Expenditure
9,436
9,475
39
8,196

Revenue
(2,512)
(2,654)
(142)
(1,723)

Net Expenditure
6,924
6,821
(103)
6,473

5.1.5 Recreation Partnerships

Expenditure
766
850
84
645

Revenue
–
–
–
–

Net Expenditure
766
850
84
645

5.1.6 Playgrounds

Expenditure
773
805
32
742

Revenue
–
–
–
–

Net Expenditure
773
805
32
742

5.1.7 Marinas

Expenditure
534
572
38
485

Revenue
(578)
(556)
22
(585)

Net Expenditure
(44)
16
60
(100)

5.1.8 Golf Course

Expenditure
178
156
(22)
–

Revenue
(51)
(61)
(10)
–

Net Expenditure
127
95
(32)
–

5.1.9 Recreation Programmes³

Expenditure
622
891
269
907

Revenue
(201)
(175)
26
(178)

Net Expenditure
421
716
295
729

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

5.1.1 Swimming Pools⁴

Expenditure
4,054
3,807
(247)
4,417

Unspent portion of budget to be carried forward
N/A
6,272

N/A

5.1.2 Sportsfields

Expenditure
1,375
1,379
4
609

Unspent portion of budget to be carried forward
N/A
34

N/A

5.1.3 Sportsfields (Synthetic)

Expenditure
38
38
–
1,074

Unspent portion of budget to be carried forward
N/A
12

N/A

5.1.4 Recreation Centres

Expenditure
188
60
(128)
5,766

Unspent portion of budget to be carried forward
N/A
32

N/A

5.1.5 Recreation Partnerships

Expenditure
265
263
(2)
232

Unspent portion of budget to be carried forward
N/A
–

N/A

5.1.6 Playgrounds

Expenditure
269
270
1
725

Unspent portion of budget to be carried forward
N/A
72

N/A

5.1.7 Marinas

Expenditure
96
95
(1)
348

Unspent portion of budget to be carried forward
N/A
7

N/A

Over budget due to the Tawa Pool closure running longer than planned. Revenue is also behind target in the fitness centres.

Operating revenue is under budget at the ASB Sports Centre.

Under budget due to lower labour costs.

Delays have been experienced with the Keith Spry Pool redevelopment. Construction has now begun – this significant upgrade is expected to be completed in the 2014/15 financial year.

How we performedTop

We provide a wide range of facilities that offer access to sports and recreation opportunities for residents. We assess our performance by measuring use of, and user satisfaction with, recreation services, facilities and recreation programmes.

To understand the standard of the services we provide; and the value the public see in them

User’s (%) satisfaction with recreation services and facilities

Source: WCC Residents’ Monitoring Survey 2013

Residents (%) who agree that Council recreation services and facilities provide good value for money

Result: 61% (target: 80%; 2011/12: 77%; 2010/11: 79%).

We are undertaking customer service surveys with the users of recreation facilities to identify where improvements can be made.

Source: WCC Residents’ Monitoring Survey 2013

To understand the reach and utilisation of the services we provide

Visits to Council swimming pools

Source: Recreation Wellington

Attendance is down due to the prolonged closure of Tawa Pool (from October 2011–November 2012) the expected extra attendance at Keith Spry to cover Tawa closure did not occur. Added to this was the delay in opening the Karori Teaching Pool which was budgeted to have been operating from the beginning of the year but only opened in January 2013.

Visits to Council recreation centres

Source: Recreation Wellington

Note: the 2011/12 figures include the ASB Centre which opened that year – from 2012/13 onwards they are reported on separately.

ASB Centre courts % utilisation – peak and off-peak

Result: Peak = 41% (target 51%) Off-peak = 28% (target 25%).

Utilisation of courts at ASB Sports Centre is lower than target due to shorter competition seasons being operated by sports organisations than was anticipated in our Annual Plan.

Source: ASB Centre

Visits to the ASB Centre – peak and off-peak

Result: Peak = 324,694 (target 392,730) Off-peak = 199,201 (target 116,730).

Overall, attendance at ASB Sports Centre has exceeded target.

Source: ASB Centre

Sportsfields - % of scheduled sports games and training that take place

Result: Winter = 84% (target: 80%) Summer = 94% (target: 90%)

Source: WCC Parks and Gardens

Marina berths and boatsheds occupancy

Source: WCC Parks and Gardens

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

Result: Winter peak = 79% (target 80%) Off-peak = 19% (target 15%)

Summer peak = 39% (target 60%) Off-peak = 13% (target 10%)

Summer peak usage of artificial pitches is down as we continue to work with regional sporting organisations/clubs and community groups during the peak holiday season. We are still working with summer sporting codes to make the transition from grass to artificial fields.

Source: WCC Parks and Gardens

College artificial sportsfields % utilisation for Council hours (summer and winter)

Result: Winter = 79% (target 80%) Summer = 36% (target 60%)

Summer peak usage of artificial pitches is down as we continue to work with regional sporting organisations/clubs and community groups during the peak holiday season. We are still working with summer sporting codes to make the transition from grass to artificial fields.

Source: WCC Parks and Gardens

5.2 Community participation and support

What we do

Our community and participation support activities contribute towards us being:

Key projects

What it costs

How we performed

Tautoko hapori

We recognise the importance of building local community resilience by supporting partnerships and programmes that connect communities and neighbourhoods and enhance community safety

We support a citywide network of community spaces, libraries and support community organisations, and provide homes for people whose needs are not met by state housing or the private housing market

What we do

Libraries

Access support (Leisure Card)

Community advocacy and support

Grants (social and recreation)

Community centres and halls

Housing

Our community and participation support activities contribute towards us being:Top

People-centred – They promote individual wellbeing, safe neighbourhoods and cohesive, engaged and inclusive communities that are better able to cope with change and provide support during times of adversity. They reflect and respond to a diversity of needs and promote accessibility and active and healthy lifestyles. They provide an opportunity for a home and a better quality of life for those less well-off without unreasonable hardship.

Connected – They help people and communities connect and engage with each other and foster the exchange of knowledge and ideas through social, physical and virtual networks.

Dynamic central city – They respond to the diversity of individual and community needs and promote a diverse, safe and vibrant city.

We have worked collaboratively with the homeless community and a range of government agencies/community organisations that work with people experiencing or are vulnerable to homelessness in developing Te Mahana – a draft strategy to end homelessness in Wellington by 2020.

Key projectsTop

During the year:

Our libraries Summer Reading Challenge for children encouraged children to read and review as many titles from the list as they could over a seven week period. Over 900 entries were received.

A promotion of the Mango languages database for people wanting to learn a new language resulted in an increase of more than three times the usage.

During the year we launched the library mobile app. This gives users of smart phones and tablets the ability to access a range of library services.

Throughout the year a number of successful library events were staged in partnership with community organisations including Law for Lunch, talks on heritage issues and demonstrations of online library resources to Seniornet members.

Leisure Card membership continued to grow with more than 7000 Wellingtonians carrying the card and over 120,000 visits to our recreation facilities during the year.

We worked with key government departments, agencies and others across the city to develop a local Wellington City Welfare Plan which provides a framework for the delivery of welfare for people and animals in an emergency. This was successfully activated to provide a welfare response to two emergencies. We are also working with Capacity to install a series of water tanks across the city for use by the community in an emergency.

We are working in partnership with member organisations of the Wellington Council of Social Services to map the city’s social services and build a comprehensive picture of the funding and delivery of social services, to identify current and emergent gaps in social services provision.

In response to increased incidences of begging we developed a number of innovative initiatives which includes an Alternate Giving Scheme. The initial social marketing campaign is to encourage people to stop giving to people on the street and to give to support agencies instead. A mobile app has been developed to allow immediate electronic payments to charities of choice. We are also working with Massey University Design School to develop donation/awareness sites that will be placed in key locations in the city.

We received $15,000 funding through the Ministry of Youth Development’s Youth Partnership Fund to work with local youth groups in Johnsonville on a mural.

We continue to work in partnership with the Capital and Coast District Health Board and other regional councils to develop a regional community directory that provides improved information on accessibility.

We reviewed our grants criteria and created new funds that align with the Council’s new priorities and will deliver outcomes that encourage healthy lifestyles, enhance connectedness and neighbourliness.

We support 52 organisations with longer-term contract funding across a range of sector groups, serving youth development, homelessness, volunteering and other social and recreational activities.

We support a network of community centres and community spaces throughout the city, and opened Churton Park Community Centre in partnership with the community.

We have partnered with Wellington Community Law to develop an online resource to provide guidance and information to assist with all aspects of governance and the operation of running a community centre.

Housing

We have completed the first five years of our 20-year upgrade programme in partnership with the Crown. The upgrade of Central Park and Newtown Park Apartments was completed and construction began at Berkeley Dallard Apartments and Marshall Court, while the revised preliminary design of Kotuku is underway.

We undertook a wide range of programmes focused on tenant wellbeing and increasing inclusiveness and connectedness, including celebrating Neighbours Day with the second Annual Tenant Summit in March 2013 and the launching of Primetimers, a positive aging programme for over–80s. We ended the year with over 100 tenants attending Matariki celebrations at Central Park Apartments.

We increased our delivery of onsite programmes including the addition of a third computer hub where our recently signed Memoranda of Understanding with the Pacific Training Institute will enable tenants to access free computer training courses to earn NZQA credits.

We received six further awards for our work in housing:

– the Australasian Housing Institute Most Inspirational Colleague award

– Wellington Association of City Housing Artists (WACHA) won the Tenant Led Initiative award

– the Housing Upgrade Project was highly commended in the Leading Housing Solution award

– NZ Institute of Architects Architect award – National Residential award for Regent Park Apartments

– NZ Open Source Award for Use in the Social Services for the City Housing Computer Hubs

– Property Council Award – Multi-unit Residential award for Regent Park Apartments.

Housing Upgrade Project

The Housing Upgrade Project is the largest and most intensive social housing redevelopment project ever undertaken in New Zealand. The Council and the Government are sharing the $400 million cost of upgrading 2,300 homes. Treasury took on the oversight of the Project in 2013 and we have been building a positive working relationship with officials.

We have continued to work closely with the Housing New Zealand Corporation (HNZC) at both a national and regional level to make best use of knowledge and resources. This included providing feedback on housing demand forecasting models, sharing information on asset development plans and, with the closure of the Gordon Wilson Apartment building, rehousing a number of HNZC tenants by leasing some of our low-demand units to the Corporation.

A strength based community development programme runs alongside the upgrade to help increase social capital and community spirit and pride within City Housing communities. A partnership with the Ministry of Social Development, Hawkins, and the Building and Construction Industry Training Organisation is proving successful and is placing a number of tenants into employment with Hawkins. We have also worked in partnership with the Wellington Regional Emergency Management Office to increase resilience within the tenant community.

What it costsTop

Operating Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

5.2.1 Libraries¹

Expenditure
20,104
20,683
579
21,234

Revenue
(1,832)
(2,284)
(452)
(2,112)

Net Expenditure
18,272
18,399
127
19,122

5.2.2 Access Support

Expenditure
125
163
38
120

Revenue
–
–
–
–

Net Expenditure
125
163
38
120

5.2.3 Community Advocacy

Expenditure
1,617
1,573
(44)
1,776

Revenue
(190)
(100)
90
(164)

Net Expenditure
1,427
1,473
46
1,612

5.2.4 Grants (Social and Recreation)

Expenditure
3,312
3,326
14
6,388

Revenue
–
–
–
(17)

Net Expenditure
3,312
3,326
14
6,371

5.2.5 Housing²

Expenditure
21,115
20,934
(181)
19,051

Revenue
(47,010)
(52,772)
(5,762)
(65,754)

Net Expenditure
(25,895)
(31,838)
(5,943)
(46,703)

5.2.6 Community Centres and Halls³

Expenditure
2,853
3,185
332
2,827

Revenue
(223)
(246)
(23)
(230)

Net Expenditure
2,630
2,939
309
2,597

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

5.2.1 Libraries

Expenditure
1,995
1,993
(2)
2,066

Unspent portion of budget to be carried forward
N/A
–

N/A

5.2.5 Housing⁴

Expenditure
31,744
32,876
1,132
49,102

Unspent portion of budget to be carried forward
N/A
6,634

N/A

5.2.6 Community Centres and Halls

Expenditure
223
269
46
833

Unspent portion of budget to be carried forward
N/A
25

N/A

Under budget due to lower labour and IT costs.

Under budget due to timing of grant income recognition relating to the Housing Upgrade Project.

Under budget due to lower labour, cleaning and depreciation costs.

Under budget due to timing changes on the Housing Upgrade Project and delays in the renewals programme.

How we performedTop

Our aim is for strong, resilient and engaged communities in which everyone feels included.

We aim to provide a high quality library service, and we measure residents’ use of and satisfaction with library services, facilities and range of collection.

We assess success in community support in a variety of ways, including use of community centres and halls and community group satisfaction with Council relationships. We also keep track of the number of groups supported through social and recreation grants.

We aim to provide good quality homes to people whose housing needs are not met by other landlords. We assess our effectiveness by measuring tenant satisfaction, compliance with legal requirements, completion of scheduled upgrades and occupancy rates.

To understand the standard of the services we provide; and the value the public see in them

Libraries – user (%) satisfaction with services and facilities

Result: 87% (target: 90%; 2011/12: 95%; 2010/11: 95%)

Source: WCC Residents’ Monitoring Survey 2013

Libraries – residents’ (%) satisfaction with range and variety of collection

Result: 87% (target: 85%; 2011/12: 92%; 2010/11: 94%)

Source: WCC Residents’ Monitoring Survey 2013

Residents (%) who agree that library services and facilities provide good value for money

Result: 76% (target: 85%; 2011/12: 84%; 2010/11: 86%)

Source: WCC Residents’ Monitoring Survey 2013

To understand the reach and utilisation of recreation services

Users of programmes – recreation centre programmes

Source: Recreation Wellington

Number of uses of Leisure Card

Source: Recreation Wellington

Residents (%) rating of their ease (easy or very easy) of access to Council recreation facilities and programmes

Result: 55% (target 85%; 2011/12: 79%; 2010/11: 84%)

We are attributing this drop in result to the change in methodology, as the number of people accessing our facilities and programmes has increased dramatically during this last year which would suggest that we are making access easier.

Source: WCC Residents’ Monitoring Survey 2013

To measure the standard of the housing services we provide

Council housing tenants’ satisfaction (%) with services and facilities

Source: WCC Housing Tenants Survey 2013

Council housing tenants’ (%) that rate the overall condition of their house/apartment as good or very good

Source: WCC Housing Tenants Survey 2013

City Housing compliance with legislative requirements

Result: all City Housing services and facilities complied with all legislative requirements (eg Residential Tenancies Act and building warrant of fitness). Target: compliance (2011/12: compliant; 2010/11: compliant).

Source: WCC City Housing

Council housing tenants (%) that feel safe in their complex at night

Source: WCC Housing Tenants Survey 2013

Council housing tenants (%) who report positive social contact

Result: 87% (target: 65%; 2011/12: 91%; 2010/11: 90%; 2009/10: 90%).

Source: WCC Housing Tenants Survey 2013

To measure the utilisation and demand of the social housing resource

Occupancy rate of available housing facilities

Result: 94% (target: 90%; 2011/12: 83%; 2010/11: 86%).

This is the occupancy for available units – it excludes units we cannot let due to construction and upgrades as part of the Housing Upgrade Project.

Source: WCC City Housing

All tenants (existing and new) housed within policy

Result: 99% (target: 98%).

Source: WCC City Housing

Residents (%) who rate services and facilities as good value for money

Result: 85% (target: 85%; 2011/12: 83%; 2010/11: 83%).

Source: WCC Housing Tenants Survey 2013

To track the progress of the Housing Upgrade Project

Milestones for Housing Upgrade Project

We completed the upgrade of Central Park Apartments in August 2012 and Newtown Park Apartments, ahead of schedule in June 2013, a total of 395 units. The upgrades included seismic strengthening, new kitchens and bathrooms, thermal curtains, improved ventilation and insulation and the reconfiguring of some units.

Construction is currently underway at Berkeley Dallard Apartments and Marshall Court (Miramar) while the revised preliminary design of Kotuku (Kilbirnie) is underway. Engagement with the tenant community included seeking their input to the design phases of all upgrade projects.

We successfully relocated over 140 households either in order to begin construction or get tenants back into upgraded properties. With only small numbers of existing tenants relocating to Central Park and Newtown Park Apartments we have managed to significantly reduce the number of households on the waiting list.

All other projects are on target to meet budgets, and design and tender milestones.

Target: meet all milestones, design standards and budgets (2011/12: achieved).

Source: WCC City Housing

To understand the effectiveness of our community support services

Community groups (%) satisfied with Council relationships

Result: 86% (target: 90%; 2011/12: 79%; 2010/11: 83%)

Source: WCC Community Networks Customer Satisfaction Survey

Residents’ neighbourliness behaviours

Result: 92% of residents have displayed ‘neighbourliness’ behaviour (target: 65%)

Source: WCC Residents’ Monitoring Survey 2013

Accessible Wellington Action Plan initiatives planned for year progressed or completed

Result: 81% (target: 80%)

This is the first year this has been measured, and measurement will be refined and developed in partnership with the Accessibility Advisory Group. An Accessibility Advisor will assist in further developing Council-wide monitoring of accessible projects. To date, projects include developing an open spaces audit checklist with accessibility as key criteria for evaluating effectiveness. Accessibility is also being integrated into project management outcomes and resources, and training has been provided to assist contractors in understanding the need for accessibility in their planning and delivering. Our libraries ensure technologies and services will improve participation and access for all, and are providing accessibility and customer interaction skills training for staff.

Source: WCC Community Networks

To understand the effectiveness of our recreation support distribution

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

Result: 100% (target: 95%).

Source: WCC Community Networks

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

Result: 96% (target: 90%).

Source: WCC Community Networks

To understand the reach and utilisation of the services we provide

Libraries – Residents (%) who are registered members

Result: 67% (target: 75%; 2011/12: 61%; 2010/11: 78%)

The 75% target was based on the previous library computer system definition of an active library member, and it included customers who remained on the system if they had active debts even if they were not using their library card. We now have the facility to exclude those, which is a more accurate figure of the active memberships.

Source: Wellington City Libraries

Libraries – physical visits and website visits

Targets for 2012/13 onwards were updated and set as part of the 2012-22 Long-term Plan.

Source: Wellington City Libraries

Library programmes – estimated attendees

Result: 81,273 (target: 70,000; 2011/12: 95,544; 2010/11: 89,886).

Source: Wellington City Libraries

Library items issued

Source: Wellington City Libraries

E-library users’ satisfaction (%) with the online library collection

Result: 70% (target: 67%)

Source: Wellington City Libraries

Occupancy rates (%) of Council community centres and halls

Result: 30% (target: 60%).

There has been a change to the methodology for calculating occupancy rates, which now combines the measure for community centres and community halls. The combined measure calculates occupancy based on the total number of hours the facility can be booked rather than a mix of bookable and staffed hours. We have reset the target from 60% to a new stretch target of 45%. We expect to meet target by the end of 2013.

Source: WCC Community Networks

Homelessness – % of known homeless people supported by agencies

Target: 100%. The result is not available as this will be a component of the Te Mahana (homelessness) project work which is still in development and the tools for this measurement will be a component of the finished strategy in December 2013/January 2014.

Source: WCC Community Networks

5.3 Public health and safety

What we do

Our public health and safety activities contribute towards us being

Key projects

What it costs

How we performed

Hauora tūmatanui me te haumanu

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

What we do

Burials and cremations

Public toilets

Public health regulations

City safety

Wellington Regional Emergency Management Office (WREMO)

Our public health and safety activities contribute towards us beingTop

People-centred – They make Wellington a safe city that is better able to cope with change.

Dynamic central city – They make the central city a safe place for people to live, work and play.

We have undertaken a joint liquor licensing monitoring programme with Regional Public Health and the New Zealand Police. The programme has included controlled purchase operations (purchase by person under 18 in controlled circumstances), joint inspections and combined enforcement proceedings.

Key projectsTop

During the year:

We constructed headstone beams in the Roman Catholic, Poon Fah, Soldiers, Muslim and Plaque Lawn sections at Makara Cemetery and began planting and fencing for the extension of the Natural Burial site at Makara Cemetery.

We worked with the Shia Muslim Community of Wellington in developing a Shia Muslim section at Makara Cemetery, and assisted the Greek community to construct a new chapel at Makara Cemetery.

We completed the new Exeloo public toilets at Newlands Mall and Grasslees Reserve.

The renewal of the Evans Bay Park pavilion includes two larger changing rooms, an increased number of shower heads and an all gender accessible public toilet.

Four hundred food businesses are now operating with Food Control Plans under the voluntary implementation programme, which equates to a third of all food businesses operating in Wellington City.

City safety

We maintained International Safe Community accreditation (WHO safe city status) which emphasises collaboration with partners to deliver safety initiatives in the city. These initiatives include local community and suburban programmes, working in partnership with community police, community patrols and neighbourhood support groups.

The Regional Graffiti Strategy was agreed and we are developing a Graffiti Management Plan to provide a framework for the city response to, and eradication of, graffiti and vandalism. We have also introduced the Stoptags database, in which the information is shared with the police and assists us in monitoring and developing graffiti responses.

As part of a personal safety campaign we launched the Wolf Pack campaign. The campaign was developed by third-year Massey University Visual Communication Design students and included a mobile app where users can keep connected to friends and be safe.

Our Walk Wise programme was reviewed and brought in-house. Local Hosts have three main roles, primarily they are the city’s ambassadors but also provide daily reporting on issues in the CBD. Local Hosts work in partnership with the Police.

In partnership with the Police, a City Safety CCTV hub was opened this year. This is monitored by police-trained volunteers and Local Hosts and connects with community patrols to assist and share information.

Wellington Regional Emergency Management Office (WREMO).

During the year, WREMO developed the next generation Group Plan. This strategic document was created with direction from the joint committee along with input from Community-Driven Emergency Management (CDEM) partners comprising council general managers, welfare organisations, emergency services, Lifeline organisations and council planners. Formal consultation was conducted at 10 venues throughout the region and correspondence was received from a further four individuals/organisations. The Group Plan was approved by the joint committee on 28 June 2013.

A companion document, the Community Resilience Strategy, was produced to provide the philosophy and systematic approach, guiding WREMO initiatives in this area. This document has since become the subject of favourable feedback from both New Zealand and external sources. The document was placed on the WREMO website in support of the successful application by Wellington City to participate in the UN-Habitat City Resilience Profiling Programme.

A comprehensive audit of each Emergency Operations Centre (EOC) was completed. The resulting remedial action plan is well under-way, designed to improve and enhance all EOC systems, equipment and procedures, to ensure sustained operations.

During the course of the year WREMO, along with regional operations, responded to the following events: a tsunami watch, a rural fire, a landslide, and a severe storm.

Emergency Management Partnerships

WREMO in association with partner councils gained three awards from the International Association of Emergency Managers (IAEM). Two were for the Blue Line project and one for the CDEM Volunteer Programme which won the 2013 Partnership in Preparedness Oceania award. This recognised WREMO for its development of a new volunteer programme that leverages its efforts to build a connected and prepared community through its new philosophy, Community-Driven Emergency Management (CDEM). The four-module course, including a new volunteer handbook, was created to reflect the change of philosophy toward social capacity-building and community focus. The new programme stands apart from others, with its strong emphasis on connectedness and preparedness while continuing to build solid community response capacity.

What it costsTop

Operating Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

5.3.1 Burials and Cremations

Expenditure
1,760
1,680
(80)
1,646

Revenue
(865)
(824)
41
(802)

Net Expenditure
895
856
(39)
844

5.3.2 Public Toilets

Expenditure
2,164
2,168
4
2,311

Revenue
–
–
–
(2)

Net Expenditure
2,164
2,168
4
2,309

5.3.3 Public Health Regulations

Expenditure
3,878
3,861
(17)
4,775

Revenue
(2,533)
(2,483)
50
(2,430)

Net Expenditure
1,345
1,378
33
2,345

5.3.4 City Safety

Expenditure
2,105
2,127
22
1,781

Revenue
(59)
(10)
49
(3)

Net Expenditure
2,046
2,117
71
1,778

5.3.5 WREMO

Expenditure
2,010
1,934
(76)
2,202

Revenue
(148)
(38)
110
(84)

Net Expenditure
1,862
1,896
34
2,118

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

5.3.1 Burials and Cremations

Expenditure
110
109
(1)
215

Unspent portion of budget to be carried forward
N/A
–

N/A

5.3.2 Public Toilets¹

Expenditure
734
735
1
418

Unspent portion of budget to be carried forward
N/A
150

N/A

5.3.4 City Safety

Expenditure
–
–
–
173

Unspent portion of budget to be carried forward
N/A
–

N/A

5.3.5 WREMO

Expenditure
–
–
–
85

Under budget due to delays in the renewal of the Martin Luckie Park Pavilion. The planning process has taken longer than expected.

How we performedTop

We aim to protect and enhance public health and safety. We measure our effectiveness through residents’ satisfaction with, and complaints about, facilities and services and by monitoring food premises’ compliance with health and safety standards.

To measure the progress towards minimising threats to public safety

Emergency management

As of July 2012 a new regionally shared emergency management organisation (Wellington Regional Emergency Management Office – WREMO) has been operating. The new organisation is hosted by the Greater Wellington Regional Council but it is accountable to the region’s Mayors and the Chief Executives’ Group of all the regional local authorities.

WREMO has updated a number of regional emergency management plans and is delivering training programmes for Civil Defence volunteers. In addition it has been reorganising the main Emergency Operations Centres for the region and ensuring these will be ready to be activated in an emergency. The agreed plans contain a number of key performance indicators which will be monitored.

A total of 144 people (equivalents) were trained throughout the region in EOC/emergency related skills. Further courses will be programmed.

Number of trained Civil Defence volunteers

Result: 382 (target: 400)

Source: WCC City Networks

To understand the effectiveness of our public health and safety services and programmes

Dog control – complaints received (% of registered dogs)

Result: 26% (target: maintain or improve – there is no historical data for this measure. Next year the target will be for complaints received to be 26% or less of registered dogs.)

Source: WCC Public Health

Response to service requests – dog control

Result: We responded to 98% of urgent requests within one hour (target: 100%; 2011/12: 97%; 2010/11: 100%), and 99% of non-urgent requests within 24 hours (target: 99%; 2011/12 99%; 2010/11: 99%).

Urgent dog attacks are defined as attacks on people or other animals.

Source: WCC Public Health

Food premises – number of cleaning notices and closures per year

Result: There were 38 cleaning notices and closures during the year. There is no target for this measure.

Source: WCC Public Health

Food premises (%) with excellent or very good hygiene ratings that maintain or improve their rating

The target was increased to 98% from 95% last year. This measures performance of premises during the year to ensure they maintain required health standards. Downgrading can be due to numerous factors, most commonly loss of trained staff, deferred maintenance, and reduced cleaning standards.

Source: WCC Public Health

Residents’ (%) satisfaction with the cleanliness of Council public toilets (satisfied or neutral responses)

Source: WCC Residents’ Monitoring Survey 2013

Response to service requests – public toilets

Result: We responded to 100% of urgent requests within one hour (target: 100%; 2011/12: 98%), and 95% of non-urgent requests within three days (target: 95%; 2011/12 98%).

Source: WCC Parks and Gardens

Council public toilets that meet required cleanliness and maintenance performance standards

Source: WCC Parks and Gardens

Percentage of planned inspections carried out for high risk (category 3) premises

Result: We achieved 100% of after-hours inspections for high risk liquor premises. This is a new Annual Plan measure.

Source: WCC Public Health

Percentage of inspections of high risk premises (category 3) carried out during high trading hours

Result: 26% (target: 25%) This is a new Annual Plan measure.

Source: WCC Public Health

Urban development

6.1 Urban planning, heritage and public spaces development

6.2 Building and development control

Tāone Tupu Ora

6 Urban development Tāone Tupu Ora

6.1 Urban planning, heritage and public spaces development

What we do

Our urban planning, heritage and public spaces development activities contribute towards us being

Key projects

What it costs

How we performed

Whakahaerenga whare me te whanaketanga

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

What we do

Urban planning and policy development

Waterfront development

Public space and centres developments

Built heritage development

Our urban planning, heritage and public spaces development activities contribute towards us beingTop

People-centred – They promote the adequacy and safety of our homes and buildings and reduce the risks of injury and damage from earthquakes.

Eco-city – They encourage the incorporation of green design features and principles into urban development and promote the preservation and greening of character built landscape rather than destruction and redevelopment.

Dynamic central city – They contribute to Wellington being a safe and good place to do business through continuously reviewed and informed policy and cost-effective and timely service delivery.

What would Cuba Street look like in 20 years?

We co-ordinated an extension of the recent Victoria University student project on Cuba Street. Our Heritage and Earthquake Resilience teams collaborated with 80 fourth–year students from the Victoria University Schools of Architecture and Design, on a project called “What would Cuba Street look like in 20 years?” that focused on exploring options for the earthquake strengthening of Cuba Street buildings while retaining their heritage character and that of the street. An exhibition of the students’ work was held at the Schools of Architecture and Design in November 2012, and provided innovative and provocative answers.

Key projectsTop

During the year:

District Plan Change 77 Curtis Street Business Area was notified and we completed the submission process, receiving 75 submissions.

The final appeal on DPC48 (Central Area Review) has been settled and signed off by the Environment Court. This is a significant milestone for this plan change which was notified in September 2006.

Approximately 15 individual Environment Court appeals were resolved (14 resolved by mediation).

We appeared in two Environment Court hearings – one on the Johnsonville Medium Density Area (DPC72) and the other on amateur radio installations (DPC74). The Court ruled in favour of both plan changes.

Memorial Park – we have been working in partnership with the New Zealand Transport Agency (NZTA) and other parties including the Australian Government on delivering this high-quality park. We are contributing $5 million of capital funding to this work in 2013/14. The timing of the work will ensure the park will be complete for ANZAC commemorations and ahead of the anniversary of the Capital City status in 2015.

Parliament Precinct – work has begun on the area between Whitmore and Molesworth streets. We are beginning to engage with key stakeholders to enable a detailed design to be delivered before the 2015 commemorations.

Kilbirnie upgrade – the first part of a $1.5 million upgrade of Kilbirnie town centre began in September 2012. With the help of the local community and businesses, the Council developed a plan aimed at revitalising the town centre and creating an attractive, vibrant, people-friendly and prosperous part of Wellington City. The work focused on improving the main shopping street, Bay Road. This included extending and improving the pedestrian areas and upgrading the lighting to help make the street safer at night. Construction work progressed slower than expected due to the replacement and location of a number of old services and works being halted during December to minimise impacts on Christmas trading. The upgrade will be completed by mid-August 2013.

We are upgrading Miramar town centre. The public space improvements will include improved parking and pedestrian safety, creation of public space, and the relocation of the public toilets. We have worked closely with the local community and businesses to ensure the design was right for the area and that businesses would be able to operate throughout the whole process of construction.

The Central City Framework sets out a vision for the development of the central city. This year we have undertaken improvements to Opera House Lane, including new lighting and artwork installation, and commenced works to improve the access and amenity of Clyde Quay.

The Built Heritage Incentive Fund is being applied mainly to projects on heritage buildings which need support for earthquake strengthening.

The Thematic Heritage Study of Wellington has been completed and will be available on our website. The study provides a framework which will be used to assist in assessing the District Plan heritage listings and ensuring that listings represent Wellington’s diverse heritage.

Wellington Waterfront Limited have undertaken the following capital works: commencing redevelopment of the Overseas Passenger Terminal; installing a diving platform by the Free Ambulance building; developing a design brief to guide the future of the North Kumutoto area (in line with Environment Court’s decision on Variation 11); completing seismic strengthening of Shed 11 and fit-out of Shed 5 including the addition of ‘The Crab Shack’.

What it costsTop

Operating Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

6.1.1 Urban Planning and Policy Development¹

Expenditure
2,168
2,388
220
2,207

Revenue
(4)
(20)
(16)
(4)

Net Expenditure
2,164
2,368
204
2,203

6.1.2 Waterfront Development²

Expenditure
11,534
2,275
(9,259)
1,876

Revenue
(9,514)
–
9,514
(463)

Net Expenditure
2,020
2,275
255
1,413

6.1.3 Public Spaces and Centres Development³

Expenditure
3,921
1,229
(2,692)
1,413

Revenue
–
–
–
(17)

Net Expenditure
3,921
1,229
(2,692)
1,396

6.1.4 Built Heritage Development⁴

Expenditure
899
1,168
269
802

Revenue
–
–
–
–

Net Expenditure
899
1,168
269
802

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

6.1.1 Urban Planning and Policy Development⁵

Expenditure
967
967
–
197

Unspent portion of budget to be carried forward
N/A
527

N/A

6.1.2 Waterfront Development⁶

Expenditure
6,307
4,042
(2,265)
4,700

Unspent portion of budget to be carried forward
N/A
418

N/A

6.1.3 Public Spaces and Centres Development⁷

Expenditure
2,259
2,220
(39)
1,492

Unspent portion of budget to be carried forward
N/A
1,331

N/A

6.1.4 Built Heritage Development

Expenditure
–
–
–
–

Unspent portion of budget to be carried forward
N/A
–

N/A

Under budget due to lower level of professional costs incurred this year on the District Plan.

Variance relates to the impact of the annual revaluation on investment property and consolidation of Wellington Waterfront.

Recognition of $3 million operating cost commitment to the National War Memorial project as approved by the Council on 26 September 2012.

Under budget due to lower professional costs and the distribution of Heritage Grants.

Delays on the Kilbirnie project, expected to be complete in August 2013.

Council approved additional budget to complete earthquake strengthening work on Shed 6.

Delays on the Laneways, Parliamentary precinct and Miramar projects.

How we performedTop

We encourage high-quality urban development that focuses growth in a way that makes the city more sustainable, while preserving its character. We monitor our District Plan programme and measure progress towards this aim through residents’ perceptions of development in relation to urban character.

To measure our effectiveness at facilitating high quality urban development

Residents (%) who agree the city is developing in a way that takes into account its unique urban character and natural environment

Source: WCC Residents’ Monitoring Survey 2013

There has been an emphasis on concept design and planning throughout the period, and projects that were scheduled for construction, for example Opera House Lane, have been delayed for various reasons. This sense of slow progress exacerbated by the general lack of building activity within the city may have impacted on results.

District Plan change appeals

Result: 100% of our District Plan appeals were resolved (target: 90%).

Source: WCC City Planning

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

Source: WCC Residents’ Monitoring Survey 2013

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

This drop may be influenced by the Kilbirnie Town Upgrade that has received considerable negative press due to delays.

Source: WCC Residents’ Monitoring Survey 2013

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

Source: WCC Residents’ Monitoring Survey 2013

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

Result: 100% (target: 95%). This was a new measure.

Source: WCC Community Networks

To measure our effectiveness at protecting the built heritage of the city

District Plan listed items that are removed or demolished

Result: 1 (target: 0). The one listed item that was removed was a heritage tree.

Source: WCC City Planning

Residents (%) who agree heritage items are appropriately valued and protected in central city and suburban areas

Heritage protection is a topical national issue. After the earthquake in Christchurch, public sensitivity to the safety of buildings is applying pressure on listed heritage buildings. Signals from Central Government and media, are that less value should be placed on heritage buildings when considered against public safety and economic viability.

Source: WCC Residents’ Monitoring Survey 2013

6.2 Building and development control

What we do

Our building and development control activities contribute towards us being

Key projects

What it costs

How we performed

Māherehere tāone, whanaketanga wāhi tuku-ihotanga, wāhi tūmatanui

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

What we do

Building control and facilitation (building consents)

Development control and facilitation (resource consents)

Earthquake risk mitigation – built environment

Our building and development control activities contribute towards us beingTop

People-centred – They promote built form and safe open spaces that welcome and engage people and encourage them to stay. They tell our stories and reflect who we are and the things we care about, helping us understand ourselves and each other.

Connected – They connect people with places and make them easy to find and functional.

Eco-city – They promote intensive development rather than sprawl into green spaces and encourage the greening of streets, buildings and places. They promote walking and riding on buses and bikes.

Dynamic central city – They promote accessible and safe places where people want to live, work, and play, and where they can meet to share events and ideas. They encourage a built form and urban culture that reflects the energy of diversity the people, and they shape a place where ideas, innovation and difference can be expressed and supported.

New Zealand Historic Places Trust, Victoria University of Wellington and the Council partnered in a pilot project to model options available to building owners in the Cuba Precinct. This was very successful and we intend to build on the information gained.

Key projectsTop

During the year:

We passed our biannual review and retained our accreditation as a building control authority. The accreditation scheme was introduced by the Government to help ensure buildings are built right first time. It focuses on strengthening the building process at the consent processing, inspection and approval stages. This change was brought about primarily in response to the nationwide issue around leaky homes.

We prepared for the implementation of a new tablet-based mobile electronic system, Go-Get, for our field inspectors that will enable us to provide better service to our customers and improve our internal processes. We implemented Go-Get into the Building Warrant of Fitness process and there has been an improvement in building compliance which improves the safety of commercial buildings in our city.

Quick Consents now allow us to process and send small simple building consents electronically.

Sixty nine percent of Land Information Memorandums (LIMs) were applied for online and over half the total applicants are current owners preparing to sell properties.

The application to demolish the heritage-listed Harcourts building was declined by independent commissioners. This decision was appealed to the Environment Court. It is anticipated that the case will be heard on 19 August.

We issued 714 resource consents. This compared with 705 in 2011/12 and 925 in 2009/10.

Earthquake risk mitigation

In conjunction with WREMO and GNS we undertook 26 Community and Business seminars, to better inform them about earthquake risk and the need for personal preparedness. Over 1400 people attended these sessions and the feedback received was very positive.

Strengthening work at Begonia House, Rugby League Park Stand, and Colonial Cottage has been completed and the buildings are no longer earthquake prone.

Wellington Rocks, an earthquake risk and building safety expo was held in April. Over 1200 people attended the expo with a further 600 attending the parallel seminar series.

What it costsTop

Operating Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

6.2.1 Building Control and Facilitation¹

Expenditure
12,276
11,663
(613)
11,286

Revenue
(7,839)
(7,660)
179
(6,755)

Net Expenditure
4,437
4,003
(434)
4,531

6.2.2 Development Control and Facilitation

Expenditure
5,300
6,033
733
5,373

Revenue
(2,368)
(3,005)
(637)
(2,487)

Net Expenditure
2,932
3,028
96
2,886

6.2.3 Earthquake Risk Mitigation - built environment²

Expenditure
355
1,022
667
422

Revenue
–
–
–
–

Net Expenditure
355
1,022
667
422

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

6.2.3 Earthquake Risk Mitigation - built environment³

Expenditure
2,193
2,397
204
948

Unspent portion of budget to be carried forward
N/A
622

N/A

Over budget as a result of the one-off impact of restructuring costs.

Under budget due to expenditure occurring later than expected.

Under budget due to $200k savings on Mayor's Office relocation and delays on other projects due to resource constraints.

How we performedTop

We measure our effectiveness by monitoring the timeframes for providing services (such as the issuing of building consents and LIMs).

We aim to ensure any development is of high quality, and complies with the District Plan and resource consent conditions. To gauge our performance, we monitor the rates of customer satisfaction with the service we provide and timely issue of contents and certificates.

We work to mitigate the potential impact of earthquakes to protect the safety of Wellingtonians. Progress is measured through the number of earthquake-prone building assessments we have undertaken, and the proportion of notifications that are not challenged.

To measure the timeliness of our legislative compliance processes and related services

Building consents (%) issued within 20 working days

Result: 99.7% (target: 100%; 2011/12: 96%; 20010/11: 94%).

Source: WCC Building Consents and Licensing

Code Compliance Certificates (%) issued within 20 working days

Result: 97% (target: 100%; 2011/12: 98%; 2010/11: 99%).

Source: WCC Building Consents and Licensin

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

Result: 100% (target: 100%; 2011/12: 100%; 2010/11: 100%).

There was a 21% increase in the number of LIMs issued from last year and the percentage of property sold in Wellington that had LIMs issued was 43% - an increase from 39% last year.

Source: WCC Building Consents and Licensing

Resource consents (non notified) issued within statutory timeframes (20 working days)

Source: WCC Development Planning and Compliance

Resource consents (%) that are monitored within three months of project commencement

Result: 99% (target: 90%; 2011/12: 91%; 2010/11: 90%).

Source: WCC Development Planning and Compliance

Subdivision certificates (%) – Section 223 certificates issued within 10 working days

Source: WCC Development Planning and Compliance

Noise control (excessive noise) complaints (%) investigated within one hour

Result: 98% (target: 90%; 2011/12: 99%; 2010/11: 98%)

Source: WCC Development Planning and Compliance

Environmental complaints (%) investigated within 48 hours

Result: 98% (target: 98%; 2011/12: 99%; 2010/11: 98%).

Source: WCC Development Planning and Compliance

To measure the satisfaction of the services we provide

Customers (%) who rate building control services as good or very good

Result: 70% (target: 70%; 2011/12: 59%; 2010/11: 43%).7

Source: WCC Building Consents and Licensing Customer Experience Survey 2013

Customers (%) who rate development control services as good or very good

Result: 53% (target: 70%; 2011/12: 45%; 2010/11: 64%).

We have maintained our very high levels of performance regarding timeframes. We have received positive feedback from applicants on our solution based and helpful approach. In terms of compliance, we have had successful prosecutions and as a result have we received positive feedback regarding the Council’s willingness to maintain public confidence in our planning controls.

Source: WCC Development Control Services Customer Satisfaction Survey 2013

To measure the standard of the services we provide

Building Consent Authority (BCA) accreditation retention

Result: Retained (target: to retain status; 2011/12: retained; 2010/11: retained).

Source: WCC Building Consents and Licensing

To measure our progress on earthquake risk mitigation

Potentially earthquake-prone buildings assessed

We completed 866 assessments. This was more than the 700 assessments required in order for the Council to achieve the target of completing 85% of the total number of known buildings that require assessment.

Source: WCC Earthquake Resilience

Earthquake prone building notifications (section 124) (%) that are issued without successful challenge

Result: 100% - there were 326 notifications8 issued and none were challenged (target: 100%; 2011/12: 100%; 2010/11: 100%).

Source: WCC Earthquake Resilience

Earthquake-strengthened Council buildings – programme achievement

Our earthquake risk mitigation work programme of assessing buildings of pre-1976 construction has seen a total of 4239 buildings assessed since the beginning of the programme in mid-2009. 612 have been declared earthquake prone, of which 134 are heritage, and 757 are left to assess. We expect to complete this programme of assessments in June 2014.

Strengthening work at Begonia House, Rugby League Park Stand and Colonial Cottage has been completed and the buildings are no longer earthquake prone. The unused toilets at Brooklyn Community centre have been demolished and the site reinstated.

We are on target with our earthquake programme of strengthening Council-owned buildings. Planning has begun for the construction on the Wellington Town Hall and on stage one of the Civic Administration Building. In addition we will strengthen Tawa and Brooklyn libraries, Thistle Hall, Truby King House and begin initial work on the Band Rotunda. The Portico will be demolished by the end of the year. Further investigative work will be undertaken on the Opera House before a strengthening proposal is developed for the Long-term Plan.

Source: WCC Earthquake Resilience

To measure uptake of the Financial Assistance Package (FAP)

Weathertight houses – Financial Assistance Package (number of claims accepted and number of remediations claimed)

There were 49 claims accepted and 23 remediations claimed. There is no target for this measure.

Source: WCC Financial Planning

7 This year the method of assessment has changed to a 10-point scale evaluation using an online post-issue survey within a short time from issue. All answers are linked to a specific contact with the department, as opposed to a general overview over time. This now aligns with other methods of satisfaction research being undertaken throughout the Council both in scale and methodology. Next year's results will be an overview of a full year's results gathered weekly, therefore using a much greater sampling size for increased accuracy.

8 The number of notifications is not likely to have a direct relationship to the current number of earthquake-prone buildings as the list can fluctuate due to buildings being strengthened, demolished or owners supplying additional information to change earthquake prone status.

Transport

7.1 Transport

7.2 Parking

Waka

7 Transport Waka

7.1 Transport

What we do

Our transport activities contribute towards us being

Key projects

What it costs

How we performed

Waka

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

What we do

Transport planning

Vehicle network

Pedestrian and cycle network

Passenger transport network

Network-wide control

Road safety

Car parking

Our transport activities contribute towards us beingTop

People-centred –They provide people with accessible and safe transport choices, from their homes to shops, for work, recreation and pleasure, including walkways and bikeways.

Connected – They provide a fit-for-purpose transport network and accessible and safe transport choices that connect people with each other and with places locally, nationally and internationally, including for commerce and trade.

Eco-city – They reflect a commitment to sustainable, safe and efficient transport choices including, walking and biking.

Dynamic central city – They provide for easy and affordable movement to and around the central city, especially by walking. They link people with places, events and activities and with commerce, business and trade.

The Council has established a ‘Wellington One Network’ partnership with the NZTA for managing the transport network to create a joint approach within the combined jurisdiction.

Key projectsTop

During the year:

We continued to provide advice on the transport aspects of the proposed Memorial Park scheme and the Wellington Public Transport Spine Study through to its final short-list evaluation phase.

We completed a further stage of safety improvements on Willis Street including new paving and street furniture at the Bond Street intersection, and completed the last stages of the major upgrade of the intersection of Adelaide Road, Riddiford and John streets.

We submitted a comprehensive funding application to NZTA for the implementation of major roading and traffic improvements for central Johnsonville, designed to both address existing traffic congestion and safety issues and also to facilitate the future expansion of the Johnsonville shopping centre.

We completed 67 kms of road resurfacing, and renewed 25 kms of footpaths and 12 kms of kerb and channelling.

The Karori Tunnel was earthquake strengthened including completion of a retaining wall on the Glenmore Street side and new, more effective and efficient LED lighting in the tunnel.

We undertook condition assessments of 57 seawalls and 129 retaining walls. This resulted in building 16 new retaining walls and renewing 25 retaining walls.

We provided project and site specific approvals covering 138 roads or part roads in the city to enable the roll-out of ultra fast broadband.

Pedestrian and cycle network

We installed approximately 40 ‘stop boxes’ that give cyclists a safe haven while waiting for traffic signals to change. In addition to the physical benefits, these boxes also help to remind drivers about the presence and importance of cyclists sharing the road.

Work progressed on the Tawa Valley pathway with a level crossing over the rail line between Tawa Pool and Tawa College opening in October 2012.

We replaced or repaired 151 bus stop signs and undertook repairs to 71 bus shelters across the city as well as installing seven new bus shelters.

We held a forum to share with cyclists our future plans and provided an opportunity for cyclists to provide feedback through a workshop session. This forum had over 200 attendees and provided valuable insight for future investment.

Road safety community programmes

To assist in the planning and delivery of our road safety community programmes we engage with the Council’s Safe and Sustainable Reference Group. This group is made up of the members of the road safety action plan group (NZTA, NZ Police, Accident Compensation Corporation and Greater Wellington Regional Council) and members from the Automobile Association, Bikers Rights Organisation New Zealand, Regional Public Health, Cycle Aware Wellington, Living Streets Aotearoa, as well as representatives of the Council's Accessibility Advisory Group and Youth Council.

Road safety

Pedestrian safety featured highly throughout the year with new controlled crossing points established at the intersection of Jervois Quay with Wakefield and Taranaki streets, in Willis Street by Chews Lane, and on Courtenay Place by Allen and Blair streets. These crossing points also improve the effectiveness of the bus lanes with improved traffic flows.

We introduced a Kea Crossing at Karori Normal School, which increases the level of warning devices for motorists before and after school hours around the crossing area.

We are working with schools to foster engineered solutions to support road safety education programmes. During the year 25 schools have committed to working with the Council to improve road safety for school children with an additional four schools showing an interest in a more formal commitment.

A new railway crossing point at Tawa has increased the level of safety for both cyclists and pedestrians that cross a busy section of railway. Cyclist and pedestrian safety has also been improved in Houghton Bay with the completion of a new roundabout and parking area.

We continued the rollout of safer speed areas through our suburban centres.

What it costsTop

Operating Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

7.1.1 Transport Planning¹

Expenditure
400
567
167
871

Revenue
(70)
(96)
(26)
(192)

Net Expenditure
330
471
141
679

7.1.2 Vehicle Network²

Expenditure
20,784
21,234
450
19,694

Revenue
(4,967)
(1,120)
3,847
(1,284)

Net Expenditure
15,817
20,114
4,297
18,410

7.1.3 Cycle Network

Expenditure
313
309
(4)
135

Revenue
(18)
(3)
15
(1)

Net Expenditure
295
306
11
134

7.1.4 Passenger Transport Network³

Expenditure
1,309
1,563
254
1,397

Revenue
(974)
(1,040)
(66)
(984)

Net Expenditure
335
523
188
413

7.1.5 Pedestrian Network⁴

Expenditure
6,032
6,125
93
5,760

Revenue
(139)
(38)
101
(34)

Net Expenditure
5,893
6,087
194
5,726

7.1.6 Network-wide Control and Management⁵

Expenditure
5,763
6,232
469
5,903

Revenue
(1,545)
(1,869)
(324)
(1,748)

Net Expenditure
4,218
4,363
145
4,155

7.1.7 Road Safety

Expenditure
5,410
5,673
263
5,391

Revenue
(1,245)
(1,570)
(325)
(1,548)

Net Expenditure
4,165
4,103
(62)
3,843

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

7.1.2 Vehicle Network⁶

Expenditure
27,675
26,863
(812)
24,459

Unspent portion of budget to be carried forward
N/A
1,465

N/A

7.1.3 Cycle Network⁷

Expenditure
1,353
1,353
–
1,127

Unspent portion of budget to be carried forward
N/A
190

N/A

7.1.4 Passenger Transport Network

Expenditure
1,033
1,013
(20)
558

Unspent portion of budget to be carried forward
N/A
–

N/A

7.1.5 Pedestrian Network⁸

Expenditure
4,674
4,811
137
4,940

Unspent portion of budget to be carried forward
N/A
–

N/A

7.1.6 Network-wide Control and Management

Expenditure
2,529
2,519
(10)
2,324

Unspent portion of budget to be carried forward
N/A
–

N/A

7.1.7 Road Safety

Expenditure
2,542
2,517
(25)
2,542

Unspent portion of budget to be carried forward
N/A
–

N/A

Under budget due to lower labour costs.

Under budget due to the recognition of unbudgeted vested asset income.

Under budget due to lower reactive maintenance, cleaning requirement and lower interest costs.

Under budget due to the recognition of unbudgeted vested asset income and lower depreciation costs.

Under budget due to lower labour and depreciation costs than budgeted.

Under budget due to delays in the purchasing process in relation to Aotea Quay land acquisition, as well as delays in the Karori Road wall replacement as a result of additional consultation with the public on artistic features. The Westchester Drive project came in over budget as a result of time delays and costs relating to structural variations requirements.

Under budget due to delays in the Tawa cycleway upgrade project, as a result of negotiations with KiwiRail in relation to access to complete the Linden Park bridge taking longer than anticipated.

Under budget due to lower labour costs requirements than budgeted.

How we performedTop

We want to ensure Wellington’s transport network is sustainable, safe and efficient. We assess efficiency and sustainability by measuring the proportion of residents who walk, cycle or use buses for transport; and by measuring resident satisfaction with the city as a place to move around on foot and in cars. We also assess performance by recording the rate of road casualties occurring and by measuring: residents’ satisfaction with our transport infrastructure/services, performance against international standards, service provision, and asset condition and peak travel times.

To measure the efficient movement of people and goods

Residents’ (%) agreement that the transport system allows easy movement around the city – vehicle users and pedestrians

Source: WCC Residents’ Monitoring Survey 2013

Peak travel times between CBD and suburbs

Location
Peak travel time range (minutes)

2007/
08
2008/
09
2009/
10
2010/
11
2011/
12
2012/
13

Miramar
7.5–24.5
8.0–28.0
8.5–19.0
9.0–19.0
8.0–20.0
10.0–15.0

Karori
9.0–22.0
8.5–22.0
8.0–23.0
8.0–20.0
8.5–27.0
9.0–24.0

Island Bay
7.5–14.5
8.0–16.5
8.0–16.5
8.0–16.0
7.0–14.0
8.0–21.0

Johnsonville
7.0–16.0
7.0–21.0
6.5–22.0
7.0–24.0
7.0–28.0
7.0–26.0

Target is to maintain or improve on these times.

Source: WCC Infrastructure

To measure the movement towards more sustainable transport options

Mode of transport into the central city (weekdays)

Source: WCC Residents’ Monitoring Survey 2013

Cyclists and pedestrians entering the CBD weekdays

Result: 862 cyclists (target: 864); 5480 pedestrians (target: 5237).

Source: WCC Infrastructure

Primary school children (%) who walk to and from school daily

Source: WCC Residents’ Monitoring Survey 2013

There is no known explanation for this drop in result beyond the potential impact from the change in survey methodology and the timing of the survey (June of this year as opposed to January and May in previous years). In terms of the change in methodology, there is a documented tendency for people to respond more positively to some questions when they are asked by a person on the telephone, as opposed to completing a survey online. In some cases, it has been shown that people respond more favourably over the phone when answering questions about something which is considered socially desirable, such as 'children walking to school'. This may account for some of the shift in the result reported here. Given the potential impact of the change in methodology on some results, we will be reviewing our performance targets in some areas.

Cable car passenger numbers

Result 1,060,458 passengers (target: 1,073,700); 2011/12: 1,067,634.

Source: Wellington Cable Car Ltd

To measure the standard of transport infrastructure and service

Residents’ (%) condition rating of the network – roads and footpaths (good and very good)

Source: WCC Residents’ Monitoring Survey 2013

Requests for service

Result: we responded to 97% of urgent requests for service within two hours (target: 100%); 2011.12: 97%; 2010/11: 100%) and 96% of non-urgent request for service within 15 days (target: 100%; 2011/12: 97%; 2010/11: 100%).

During the year we had approximately 22,000 requests for service across the roading and transport network. These requests are prioritised according to the risk to the public or property with urgent tasks responded to within two hours.

During the year we processed approximately 550 requests relating to footpath and accessway maintenance and 220 requests for maintenance to kerb and channel assets – all of which were responded to within 15 working days.

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

Road smoothness is assessed using criteria from the National Association of Australian State Road Authorities (NAASRA). The above figures include smoothness ratings for both rural and urban roads within Wellington City.

Source: WCC Infrastructure

Footpath condition rating – % compliant with Council standards

Result: 92% (target: 97%; 2011/12: 97%; 2010/11: 97%)

Source: WCC Infrastructure

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

Result: 93% of lights comply (target: 100%; 2011/12: 94%; 2010/11: 93%).

Source: WCC Infrastructure

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

Analysis of the survey results will be undertaken to assess why there was such a drop in satisfaction. By grouping respondents by location we will assess if there have been any significant outages or faults that could contribute to this drop in satisfaction.

Source: WCC Residents’ Monitoring Survey 2013

User satisfaction (%) with the safety and maintenance of cycleways

Source: WCC Residents’ Monitoring Survey 2013

Our target for satisfaction with cycleway maintenance was reduced slightly in the 2012-22 Long-term Plan to reflect the 2011 baseline result of 60%.

Residents (%) who agree that Council transport network services provide good value for money

Result: 65% of residents agree the Council transport network provides good value for money (target: 75%; 2011/12: 66%; 2010/11: 70%)

Source: WCC Residents’ Monitoring Survey 2013

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

Result: 91% of walls are rated 3 or better – 1 being very good and 5 very bad (target: 90%; 2011/12: 95%).

Source: WCC Infrastructure

Quarry

Result: achieved (target: to meet legislative compliance).

Source: WCC Infrastructure

To measure progress towards increasing transport safety

Road casualties (per 10,000 population):

| Targets: Maintain or reduce
| 2009/10 | 2010/11 | 2011/12 | 2012/13
Vehicles | 55.6 | 47.2 | 29.2 | 26.3
Pedestrians | 3.3 | 3.7 | 3.7 | 3.3
Cyclists | 3.4 | 3.3 | 2.3 | 3.3

Note: results are based on road casualties on Wellington City Council roads – not the region. Next year the data will focus on the number of crashes rather than the number of casualties resulting from a singular crash.

Source: NZ Transport Agency

7.2 Parking

What we do

Our parking activities contribute towards us being

Key projects

What it costs

How we performed

Ratonga tūnga waka

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

What we do

Parking

Our parking activities contribute towards us beingTop

People-centred – Through short-term parking they promote convenience for people choosing to travel by car to shop, visit or do business. Through long-term parking they provide convenience for people choosing to travel by car for work or extended business or leisure in the city.

Connected – They allow people choosing to travel by car to connect with people and places in the central city for businesses, work or leisure.

Dynamic central city – By encouraging people to travel into the central city, they enhance its vibrancy and promote retail and other business activity.

Key projectsTop

We introduced ‘taxi restricted parking areas’ on Mercer Street, Featherston Street, Lambton Quay, Waring Taylor Street and The Terrace in response to public concern over taxis monopolising public parking spaces in the vicinity of heavily used taxi stands.

We added Snapper as a payment option on 600 pay and display machines covering 3000 parks in the central business district.

What it costsTop

Operating Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

7.2.1 Parking¹

Expenditure
10,702
12,034
1,332
10,679

Revenue
(25,427)
(27,664)
(2,237)
(25,629)

Net Expenditure
(14,725)
(15,630)
(905)
(14,950)

Capital Expenditure ($000)
Actual
2013
Budget
2013
Variance
2013
Actual
2012

7.2.1 Parking

Expenditure
–
–
–
2,357

Unspent portion of budget to be carried forward
N/A
–

N/A

Over budget due to reduced revenue from parking enforcement.

How we performedTop

To ensure people can access the central city and its amenities, we provide convenient on-street parking throughout the central city. We monitor this by measuring daily parking turnover rates and compliance with parking regulations.

To measure the standard of the provision of parking

On-street car park turnover rates – weekdays and weekends

Source: WCC Infrastructure

On-street car park average occupancy (%)

Result: Overall occupancy 75% (target: 75%; 2011/12: 65%; 2010/11: 76%)

Zone | Weekday occupancy | Weekend occupancy
Cable/Civic | 64% | 94%
Cuba/Tory/Courtenay | 67% | 81%
Lambton/Terrace/Aitken | 81% | 82%

Source: WCC Infrastructure

On-street car park compliance – time restrictions and payment

Source: WCC Infrastructure

Residents’ satisfaction with the availability of on-street car parking

Source: WCC Residents’ Monitoring Survey 2013

There is no explanation other than a change in the methodology to why satisfaction with parking availability in the weekends has dropped substantially. The parking meter fleet has been updated with more payment options, and time restrictions are now enforced on Sundays resulting in increased turnover of parking spaces.

Residents’ perceptions (%) that parking enforcement is fair

Result: 33% of residents believe that parking enforcement is fair (target: this is a new measure so there is no target. Next year the target will be to increase on this year’s result).

Source: WCC Residents’ Monitoring Survey 2013

Financial Statements

Financial overview

Funding Impact Statements

Statement of Compliance and Responsibility

Statement of Comprehensive Financial Performance

Explanation of Council's Net Surplus

Statement of Changes in Equity

Statement of Financial Position

Statement of Cash Flows

Notes forming part of the financial statements

Financial overview

Net SurplusAnnual Report, Statement of Comprehensive Financial Performance, page 102

Total Comprehensive Income

Budgeted Net Surplus

Difference between budgeted and actual net surplusAnnual Report, Notes to the financial statements, Note 33: Major Budget Variations, page 165

Underlying funding surplus/(deficit)

Financial Performance

Financial PositionAnnual Report, Statement of Financial Position, page 105

Borrowings Compliance

Group highlights

Looking forward

Net Surplus9

The net surplus is the difference between the expenses the Council incurred during the year and the income the Council received. It is represented by the following formula:

Net Surplus = Total income – Total expenses

The Council recorded a net surplus of $28.2 million. The budgeted net surplus was $37.4 million. The net surplus for the year was $9.2 million less than budgeted.

The net surplus for the year includes income that was received to pay for capital projects such as funding from NZTA for roading projects and Housing New Zealand for the upgrades to our social housing. As the cost for capital projects is not recorded in the Statement of Comprehensive Financial Performance the Council budgets to generate a surplus.

Total Comprehensive IncomeTop

Total comprehensive income of $42.1 million represents the net surplus of $28.2 million adjusted for fair value movements of some of our assets including plant and equipment and financial instruments such as cash flow hedges. These movements are non-cash in nature and reflect changing fair value of assets the Council owns.

Budgeted Net SurplusTop

The majority of the budgeted net surplus of $37.4 million is due to funding received from the Crown to fund capital expenditure projects.

Difference between budgeted and actual net surplus10Top

| $000
Budgeted Net Surplus | 37,426
Value of assets vested to Council | 10,519
These are assets transferred between the Council and an external party and are recognised as revenue or expense accordingly. The majority are infrastructural assets that have been constructed by developers and transferred to the Council on completion. |
Net fair value gain/(loss) | 5,683
These amounts reflect changes in the fair value of our investment properties, loans to related parties and interest rate swaps. These movements are non-cash in nature. |
Net surplus/(deficit) from Wellington Waterfront and Venues Projects and joint ventures | (6,764)
The financial performance (deficit) of these entities is not included in the budget and is subtracted. (Excludes fair value movements and gains or losses on the disposal of assets shown separately) |
Changes to External Funding for Capital Expenditure | (6,675)
This income is received for specific capital projects and cannot be used to fund operating expenditure. |
Net gain/(loss) on disposal of fixed assets | (1,127)
The Council does not budget for gains or losses on the disposal of assets |
Other changes | 548
Certain depreciation charges are not funded through rates as they are either fully or partly funded by external parties |
Ringfenced surpluses/(deficits) | 1,872
Surpluses and deficits from our housing and waste activities are ringfenced. Deficits are not rates funded. |
Underlying funding surplus/(deficit) | (13,295)
Further breakdown follows. |
Actual Net Surplus | 28,187

Underlying funding surplus/(deficit)Top

Underlying net surplus/deficit is the portion of the overall net surplus/(deficit) that has arisen from changes to operating income and operational expenditure as compared to budget. The underlying funding surplus/(deficit) is an important measure of the overall financial performance of the Council during the year.

The Council has recorded an underlying funding deficit in the current year of $13.3 million. This has arisen because the Council recorded expenditure relating to a reassessment of the provision for weathertight homes which has been partially offset by net savings in operational expenditure.

| $000
Unbudgeted net revenue/(expenditure) |
Restatement of weathertight homes provision | (14,965)
Provision for storm costs | (855)
Insurance costs (net of recoveries) funded through self-insurance reserve | (451)
Significant changes in net revenue/(expenditure) |
Dividends in excess of budget (including Wellington International Airport Ltd) | 1,624
Decrease in income from activities | (3,276)
Decrease in depreciation | 2,820
Decrease in rates revenue | (2,228)
Decrease in net interest expense | 1,997
Other net variances | 2,039
Total underlying funding deficit | (13,295)

The movement in the weathertight homes provision is separately funded through a combination of rates and borrowings so is added back to calculate the underlying surplus available for use. The Council has already agreed to use $3 million of the 2012/13 surplus to fund the Wellington Economic Initiatives Development Fund and therefore has an underlying funding surplus to carry forward of $10.5 million.

| $000
Opening underlying funding surplus from previous years | 1,940
Items separately rates funded in prior year |
Movement in weathertight homes provision | 9,903
Underlying surplus carried forward from previous years | 11,843
Movement in underlying funding deficit from this year's result | (13,295)
Items separately rates funded
Movement in weathertight homes provision | 14,965
Adjusted available underlying surplus | 13,513
Transfer to reserves
Funding Wellington Economic Initiatives Development Fund | (3,000)
Remaining underlying funding surplus to carry forward | 10,513

5 Year Trend ($M)

Five year trend.Top

2013 Results compared with Annual Plan

Financial PerformanceTop

Income11

The Council received total income of $446.4 million during the year.

Source of income.Top

Rates are the main source of funding for the Council with revenue from operating activities, which includes user fees, being the next largest source. Other sources of income for the Council include income for capital expenditure, income from interest and dividends.

We received $237.4 million of income from rates.12  Rates income comes from a number of sources including general rates levied on properties and a range of targeted rates including stormwater and sewerage rates.

Source of rates income.Top

General rates revenue is collected based on property rateable values. Currently commercial properties pay rates at a higher level on their rateable value than non-commercial properties. This is called the rates differential. The rates differential during the year is shown in the graph below. Currently the ratio is 1:2.8.

Expenses13

The total expenses incurred by the Council during the year were $418.2 million which represents the cost of running the city during the year. The activities of the Council are divided into strategic areas of focus:

Operational expenditure by strategic area.Top

The table below shows the cost per Wellington resident14 per day for each strategic area.

Cost per strategic area per resident per day

Strategic area
Total cost
$M
Cost per resident per year
$
Cost per resident per day
$

Governance
15.0
75
0.21

Environment
140.0
700
1.92

Economic Development
33.0
165
0.45

Cultural Wellbeing
17.9
89
0.24

Social and Recreation
96.7
483
1.32

Urban Development
36.5
182
0.50

Transport
50.7
253
0.69

Council
28.4
142
0.39

418.2
$2,089
$5.72

Deciding who pays

When we’re deciding how to fund an activity (whether to use rates, user charges, or other sources of income), we consider:

community outcomes that the activity contributes to;

who benefits – individuals, identifiable parts of the community, or the community as a whole;

the timeframe in which the benefit occurs – for example, an asset that lasts for several generations will generally be funded through borrowing and depreciation so that everyone who benefits, present and future, contributes.

Our Revenue and Financing Policy sets out how each Council activity will be funded, based on these criteria. The policy is available on our website www.Wellington.govt.nz

Financial Position15Top

Net worth is the difference between the total assets and the total liabilities of the Council. Net worth is represented in the financial statements by the balance of equity.

The net worth of the Council at the end of the year was $6,348.4 million, an increase of $42.1 million from the previous year. The main reasons for the increase were the net surplus generated for the year and the fair value movement in our cash flow hedges.16

Assets and liabilities – five year trend $M

Assets

The major assets of the Council include:

Property, Plant and Equipment (including land, buildings and infrastructure assets) – $6,546.3 million

Other Assets (including investment properties and investments in subsidiaries and associates) – $365.0 million

During the year $134.1 million was spent on constructing and developing assets around Wellington that contributed to the balance of Property, Plant and Equipment. The chart below shows how much was spent on each strategic area during the year for constructing and developing assets:

Capital expenditure by strategy.Top

To help spread the cost of assets to everyone who benefits the Council budgets to recover a certain amount of the value of the asset each year. This amount is called depreciation.17  Depreciation spreads the cost of an asset over its useful life.

Liabilities

The major liabilities of the Council include:

Gross borrowings – $388.3 million18

Other liabilities (including trade and other payables) – $174.6 million

The Council uses borrowings to fund the purchase or construction of new assets or upgrades to existing assets that are approved though the Annual Plan and Long-term Plan process.

Net borrowings

Net borrowings are the total borrowings less any cash and cash equivalents.19

Net Borrowings = Gross Borrowings – Cash and Cash Equivalents.

The gross borrowings were $388.3 million20 , less the balance of cash and cash equivalents of $44.4 million, resulting in a net borrowings balance of $343.9 million at the end of the year.

Net borrowings – five year trend $M

Net borrowings - five year trend.Top

Net borrowings increased by $5.0 million during the year. The net borrowings at the end of the year is $10.1 million less than budgeted in the 2012/13 Long-term Plan. The difference is due to changes in the timing of capital projects and savings in capital expenditure.

Investment Position

The Council continues to maintain a strong investment position when compared with the level of borrowings. The graph below compares the balance of investments and net borrowings over the last five years.

Investments and borrowings – five year trend $M

Investments and borrowings - five year trend.Top

The balance of investments primarily comes from investment properties, our share of the net assets of our associates (including Wellington International Airport Limited) and other financial assets.

Borrowings ComplianceTop

During the year the Council maintained its AA credit rating with Standard and Poors. The credit rating is a comparative measure of the financial strength of the Council. The AA rating held by the Council is the highest attributed to councils across New Zealand. Holding and maintaining such a high credit rating provides a range of benefits to the Council that would not otherwise be available. These benefits include access to lower cost borrowings and access to a wider range of borrowing alternatives.

The Council has met all of the core policy compliance requirements set out in its Investment and Liability Management Policy.

The prudential limits are set out in the table below:

Prudential limits | Policy Limit | Actual | Compliance
Borrowings as a % of equity | <10% | 5.5% | Yes
Borrowings as a % of income | <150% | 78.7% | Yes
Net interest as a % of annual rates income | <15% | 8.4% | Yes

Notes:
Equity is based on the 30 June 2013 Annual Report
Net interest, Net borrowings, Annual Rates and Income are based on 30 June 2013 figures

The policy limit for net borrowings as a percentage of income for the Council of 150% is significantly less than the Local Government Funding Agency policy limit of 250%. The Council is comfortably in compliance with the prudential limits set out in the Investment and Liability Management Policy

The Council uses hedging to reduce the impact of changes in interest rates. By hedging the floating rates they effectively become fixed rates. The Investment and Liability Management Policy sets out both upper and lower hedging limits. At the end of the year some % of the interest on borrowings was effectively fixed due to hedging.21

Interest rate risk control limits
(interest rate exposure)
Policy Limit
Actual
Compliance

Fixed interest proportion
50–95%
84%
Yes

Broken down as follows:

1–3 year bucket
20–60%
24%
Yes

3–5 year bucket
20–60%
23%
Yes

5–10 year bucket
20–60%
53%
Yes

Liquidity is a measure of the Councils ability to access cash when required. The Council manages its liquidity risk by ensuring we have unused facilities available to fund future spending and by ensuring the maturity of our borrowings is well spread. The limits for liquidity are set out in the Investment and Liability Management Policy. There are some $151.5 million of unused facilities available at 30 June to cover future spending requirements and ensure that the Council has adequate access to funds at all times.22

Liquidity/funding risk (access to funds) | Policy Limit | Actual | Compliance
Liquidity/funding risk (access to funds) | >110% | 114% | Yes
Broken down as follows: |  |  |
1–3 year bucket | 20–60% | 60% | Yes
3–5 year bucket | 20–60% | 21% | Yes
5–10 year bucket | 15–60% | 19% | Yes

Notes:
“Liquidity” is defined as Current borrowings committed loan facilities divided by 12 month peak borrowings (for the purposes of measuring liquidity short dated Commercial paper is excluded).

Group highlightsTop

The Group comprises the Council and its interests in associate and subsidiary entities. These entities include Wellington International Airport Limited and Capacity. Refer to Note 38 of the financial statements for the full Group structure diagram.

| 2013 | 2012 | 2011 | 2010 | 2009
| $M | $M | $M | $M | $M
Net surplus | 30.4 | 50.0 | 8.2 | 23.5 | 16.0
Total assets | 7,081.3 | 7,006.3 | 6,841.9 | 6,485.6 | 6,443.0
Total liabilities | (570.6) | (540.1) | (495.1) | (397.6) | (375.4)
Total equity | 6,510.7 | 6,466.2 | 6,346.8 | 6,088.0 | 6,067.6

Looking forwardTop

The results for the year ended 30 June 2013 reflect the delivery of high-quality, cost-effective services and products to the residents of Wellington.

The 2013/14 Annual Plan sets out the Council’s planned operating expenditure programmes for the 2013/14 year. The following graphs highlight the Council’s spending plans for the 2013/14 financial year.

Operational Expenditure 2013/14

Total operational expenditure: $388.7 million.

Capital Expenditure 2013/14

Total capital expenditure $139.7 million. This does not include the $32.7 million of capital expenditure carried forward from the 2012/13 financial year.23

9 Annual Report, Statement of Comprehensive Financial Performance, page 102

10 Annual Report, Notes to the financial statements, Note 33: Major Budget Variations, page 165

11 Annual Report, Statement of Comprehensive Financial Performance, page 102

12 Annual Report, Notes to the financial statements, Note 1: Revenue from rates, page 121

13 Annual Report, Statement of Comprehensive Financial Performance, page 102

14 Estimated city population to be 200,100 by Statistics New Zealand

15 Annual Report, Statement of Financial Position, page 105

16 Annual Report, Notes to the financial statements, Note 26 Hedging reserve, page 153

17 Annual Report, Statement of Comprehensive Financial Performance, page 102

18 Annual Report, Notes to the financial statements, Note 21 Borrowings, page 142

19 Annual Report, Notes to the financial statements, Note 10 Cash and Cash Equivalents, page 128

20 Annual Report, Notes to the financial statements, Note 21 Borrowings, page 142

21 Annual Report, Notes to the financial statements, Note 31 Financial instruments, page 156

22 Annual Report, Notes to the financial statements, Note 21 Borrowings, page 142

23 Annual Report, Notes to the financial statements, Note 34 Analysis of capital expenditure by strategy, page 167

Funding Impact Statements

Whole of Council2

1.1 Governance, information and engagement

1.2 Māori engagement (including mana whenua)

2.1 Open spaces and conservation

2.2 Waste reduction, recycling and energy conservation

2.3 Water

2.4 Wastewater

2.5 Stormwater

2.6 Conservation attractions

3.1 City promotions and business support

4.1 Arts and culture activities

5.1 Recreation promotion and support

5.2 Community participation and support

5.3 Public health and safety

6.1 Urban planning, heritage and public spaces development

6.2 Building and development management

7.1 Transport

7.2 Parking services

Capital expenditure funding by strategic area

For the period 1 July 2012 to 30 June 2013

The funding impact statements show the source and application of funds for activities of the Council and are a new requirement of the Local Government Act 2002. The statements present the capital and operational expenditure separately. The format for the funding impact statements is prescribed in the Local Government (Financial Reporting) Regulations 2011. As the format of the statements is prescribed in legislation it improves the ability to compare the results across different councils.

Whole of Council²

Annual plan
2011/12
$000
Actual
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

General rates, uniform annual general charges, rates penalties
124,615
124,792
127,147
126,925

Targeted rates (other than a targeted rate for water supply)
93,095
93,107
99,740
99,097

Subsidies and grants for operating purposes
6,323
6,903
6,831
6,660

Fees, charges, and targeted rates for water supply¹
107,465
106,422
110,101
109,435

Interest and dividends from investments
9,308
23,355
9,308
12,530

Local authorities fuel tax, fines, infringement fees, and other receipts
13,271
10,590
12,162
9,607

Total operating funding (A)
354,077
365,169
365,289
364,254

Applications of operating funding

Payments to staff and suppliers
230,640
229,081
235,262
229,409

Finance costs
22,195
21,209
22,647
22,247

Other operating funding applications
28,496
39,315
29,568
35,537

Total applications of operating funding (B)
281,331
289,605
287,477
287,193

Surplus (deficit) of operating funding (A - B)
72,746
75,564
77,812
77,061

Sources of capital funding

Subsidies and grants for capital expenditure
58,501
62,438
45,765
39,925

Development and financial contributions
5,753
3,434
5,000
4,356

Increase (decrease) in debt
23,439
30,052
14,919
19,651

Gross proceeds from sales of assets
-
-
-
-

Lump sum contributions
-
-
-
-

Total sources of capital funding (C)
87,693
95,924
65,684
63,932

Applications of capital funding

Capital expenditure

- to meet additional demand
2,589
6,731
2,702
3,181

- to improve the level of service
76,480
79,951
54,491
52,695

- to replace existing assets
74,453
67,536
78,944
78,241

Increase (decrease) in reserves
6,917
17,270
7,359
6,876

Increase (decrease) in investments
-
-
-
-

Total applications of capital funding (D)
160,439
171,488
143,496
140,993

Surplus (deficit) of capital funding (C - D)
(72,746)
(75,564)
(77,812)
(77,061)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
86,349
85,691
91,703
88,577

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).
² The figures in this statement represent the Council only and do not include Wellington Waterfront or Venues Projects or our joint ventures with Porirua City Council.

1.1 Governance, information and engagementTop

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

General rates, uniform annual general charges, rates penalties
15,362
14,666
14,666

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

Subsidies and grants for operating purposes
-
-
-

Fees, charges, and targeted rates for water supply¹
398
384
470

Internal charges and overheads recovered
-
-
-

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

Total operating funding (A)
15,760
15,050
15,136

Applications of operating funding

Payments to staff and suppliers
8,090
7,892
7,509

Finance costs
-
-
-

Internal charges and overheads applied
7,377
7,034
7,035

Other operating funding applications
135
10
127

Total applications of operating funding (B)
15,602
14,936
14,671

Surplus (deficit) of operating funding (A - B)
158
114
465

Sources of capital funding

Subsidies and grants for capital expenditure
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
-
-
-

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
-
-
-

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
-
-
-

- to replace existing assets
-
-
19

Increase (decrease) in reserves
158
114
446

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
158
114
465

Surplus (deficit) of capital funding (C - D)
(158)
(114)
(465)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
158
114
99

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).

1.2 Māori engagement (including mana whenua)Top

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

General rates, uniform annual general charges, rates penalties
237
237
237

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

Subsidies and grants for operating purposes
-
-
-

Fees, charges, and targeted rates for water supply¹
-
-
5

Internal charges and overheads recovered
-
-
-

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

Total operating funding (A)
237
237
242

Applications of operating funding

Payments to staff and suppliers
235
229
214

Finance costs
-
-
-

Internal charges and overheads applied
2
8
5

Other operating funding applications
-
-
-

Total applications of operating funding (B)
237
237
219

Surplus (deficit) of operating funding (A - B)
-
-
23

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
-
-
-

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
-
-
-

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
-
-
-

- to replace existing assets
-
-
-

Increase (decrease) in reserves
-
-
23

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
-
-
23

Surplus (deficit) of capital funding (C - D)
-
-
(23)

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

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

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).

2.1 Open spaces and conservationTop

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

General rates, uniform annual general charges, rates penalties
27,306
26,648
26,648

Targeted rates (other than a targeted rate for water supply)
376
408
408

Subsidies and grants for operating purposes
512
549
766

Fees, charges, and targeted rates for water supply¹
1,174
1,188
1,215

Internal charges and overheads recovered
5,101
5,207
5,120

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

Total operating funding (A)
34,469
34,000
34,157

Applications of operating funding

Payments to staff and suppliers
16,909
16,453
16,932

Finance costs
-
-
-

Internal charges and overheads applied
13,647
13,444
13,686

Other operating funding applications
80
100
57

Total applications of operating funding (B)
30,636
29,997
30,675

Surplus (deficit) of operating funding (A - B)
3,833
4,003
3,482

Sources of capital funding

Subsidies and grants for capital expenditure
380
250
472

Development and financial contributions
1,284
1,099
792

Increase (decrease) in debt
(472)
(1,206)
(1,117)

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
1,192
143
147

Applications of capital funding

Capital expenditure

- to meet additional demand
39
49
50

- to improve the level of service
1,153
94
97

- to replace existing assets
1,652
2,479
2,525

Increase (decrease) in reserves
2,181
1,524
957

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
5,025
4,146
3,629

Surplus (deficit) of capital funding (C - D)
(3,833)
(4,003)
(3,482)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
3,833
4,226
3,971

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).

2.2 Waste reduction, recycling and energy conservationTop

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

General rates, uniform annual general charges, rates penalties
485
496
496

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

Subsidies and grants for operating purposes
-
-
-

Fees, charges, and targeted rates for water supply¹
10,055
11,821
12,079

Internal charges and overheads recovered
258
296
89

Local authorities fuel tax, fines, infringement fees, and other receipts
-
7
-

Total operating funding (A)
10,798
12,620
12,664

Applications of operating funding

Payments to staff and suppliers
9,028
10,817
8,723

Finance costs
807
953
1,010

Internal charges and overheads applied
91
(29)
(327)

Other operating funding applications
-
-
11

Total applications of operating funding (B)
9,926
11,741
9,417

Surplus (deficit) of operating funding (A - B)
872
879
3,247

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
8

Development and financial contributions
-
-
-

Increase (decrease) in debt
941
204
137

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
941
204
145

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
941
204
137

- to replace existing assets
-
865
395

Increase (decrease) in reserves
872
14
2,860

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
1,813
1,083
3,392

Surplus (deficit) of capital funding (C - D)
(872)
(879)
(3,247)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
872
879
657

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).

2.3 WaterTop

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

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

Targeted rates (other than a targeted rate for water supply)
24,169
23,536
23,536

Subsidies and grants for operating purposes
-
-
-

Fees, charges, and targeted rates for water supply¹
11,850
12,854
11,427

Internal charges and overheads recovered
-
-
-

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

Total operating funding (A)
36,019
36,390
34,963

Applications of operating funding

Payments to staff and suppliers
18,865
19,816
20,232

Finance costs
-
-
-

Internal charges and overheads applied
4,239
3,665
3,603

Other operating funding applications
-
-
10

Total applications of operating funding (B)
23,104
23,481
23,845

Surplus (deficit) of operating funding (A - B)
12,915
12,909
11,118

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
109

Development and financial contributions
1,437
1,231
733

Increase (decrease) in debt
895
1,899
2,472

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
2,332
3,130
3,314

Applications of capital funding

Capital expenditure

- to meet additional demand
-
254
274

- to improve the level of service
2,332
2,876
3,040

- to replace existing assets
8,369
8,226
8,856

Increase (decrease) in reserves
4,546
4,683
2,268

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
15,247
16,039
14,432

Surplus (deficit) of capital funding (C - D)
(12,915)
(12,909)
(11,118)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
12,915
13,824
13,823

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).

2.4 WastewaterTop

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

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

Targeted rates (other than a targeted rate for water supply)
30,937
33,433
33,433

Subsidies and grants for operating purposes
-
-
-

Fees, charges, and targeted rates for water supply¹
1,272
1,252
1,182

Internal charges and overheads recovered
-
-
-

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

Total operating funding (A)
32,209
34,685
34,615

Applications of operating funding

Payments to staff and suppliers
14,767
16,863
18,475

Finance costs
-
-
-

Internal charges and overheads applied
8,731
8,741
7,239

Other operating funding applications
-
-
-

Total applications of operating funding (B)
23,498
25,604
25,714

Surplus (deficit) of operating funding (A - B)
8,711
9,081
8,901

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
1,176
1,007
1,038

Increase (decrease) in debt
(1,017)
(818)
(708)

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
159
189
330

Applications of capital funding

Capital expenditure

- to meet additional demand
4
189
172

- to improve the level of service
155
-
158

- to replace existing assets
7,759
7,363
6,552

Increase (decrease) in reserves
952
1,718
2,349

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
8,870
9,270
9,231

Surplus (deficit) of capital funding (C - D)
(8,711)
(9,081)
(8,901)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
11,944
12,984
12,514

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).

2.5 StormwaterTop

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

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

Targeted rates (other than a targeted rate for water supply)
16,972
17,363
17,363

Subsidies and grants for operating purposes
36
39
57

Fees, charges, and targeted rates for water supply¹
8
9
93

Internal charges and overheads recovered
-
-
1

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

Total operating funding (A)
17,016
17,411
17,514

Applications of operating funding

Payments to staff and suppliers
4,761
5,356
6,599

Finance costs
-
-
-

Internal charges and overheads applied
5,602
5,573
4,349

Other operating funding applications
-
-
-

Total applications of operating funding (B)
10,363
10,929
10,948

Surplus (deficit) of operating funding (A - B)
6,653
6,482
6,566

Sources of capital funding

Subsidies and grants for capital expenditure
-
189
-

Development and financial contributions
124
107
85

Increase (decrease) in debt
236
(35)
8

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
360
261
93

Applications of capital funding

Capital expenditure

- to meet additional demand
9
95
64

- to improve the level of service
351
166
29

- to replace existing assets
3,315
3,532
2,470

Increase (decrease) in reserves
3,338
2,950
4,096

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
7,013
6,743
6,659

Surplus (deficit) of capital funding (C - D)
(6,653)
(6,482)
(6,566)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
6,653
6,482
6,543

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).

2.6 Conservation attractionsTop

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

General rates, uniform annual general charges, rates penalties
4,907
5,378
5,378

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

Subsidies and grants for operating purposes
-
-
-

Fees, charges, and targeted rates for water supply¹
-
-
-

Internal charges and overheads recovered
-
-
-

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

Total operating funding (A)
4,907
5,378
5,378

Applications of operating funding

Payments to staff and suppliers
96
122
128

Finance costs
-
-
-

Internal charges and overheads applied
1,075
1,031
953

Other operating funding applications
2,839
3,164
3,149

Total applications of operating funding (B)
4,010
4,317
4,230

Surplus (deficit) of operating funding (A - B)
897
1,061
1,148

Sources of capital funding

Subsidies and grants for capital expenditure
1,072
155
541

Development and financial contributions
-
-
-

Increase (decrease) in debt
3,217
467
1,430

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
4,289
622
1,971

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
4,289
622
1,971

- to replace existing assets
242
172
173

Increase (decrease) in reserves
655
889
975

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
5,186
1,683
3,119

Surplus (deficit) of capital funding (C - D)
(897)
(1,061)
(1,148)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
897
1,061
1,124

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).

3.1 City promotions and business supportTop

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

General rates, uniform annual general charges, rates penalties
5,233
5,032
5,032

Targeted rates (other than a targeted rate for water supply)
11,450
14,572
14,572

Subsidies and grants for operating purposes
-
-
40

Fees, charges, and targeted rates for water supply¹
248
-
635

Internal charges and overheads recovered
-
-
-

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

Total operating funding (A)
16,931
19,604
20,279

Applications of operating funding

Payments to staff and suppliers
5,712
5,755
6,739

Finance costs
-
-
-

Internal charges and overheads applied
2,275
2,428
2,381

Other operating funding applications
7,236
9,178
8,366

Total applications of operating funding (B)
15,223
17,361
17,486

Surplus (deficit) of operating funding (A - B)
1,708
2,243
2,793

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
-
4,011
2,419

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
-
4,011
2,419

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
-
4,011
2,419

- to replace existing assets
2,201
1,483
894

Increase (decrease) in reserves
(493)
760
1,899

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
1,708
6,254
5,212

Surplus (deficit) of capital funding (C - D)
(1,708)
(2,243)
(2,793)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
1,708
2,243
1,450

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).

4.1 Arts and culture activitiesTop

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

General rates, uniform annual general charges, rates penalties
10,834
11,716
11,716

Targeted rates (other than a targeted rate for water supply)
4,950
5,135
5,135

Subsidies and grants for operating purposes
419
420
285

Fees, charges, and targeted rates for water supply¹
623
626
823

Internal charges and overheads recovered
147
162
162

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

Total operating funding (A)
16,973
18,059
18,121

Applications of operating funding

Payments to staff and suppliers
2,939
3,256
3,131

Finance costs
-
-
-

Internal charges and overheads applied
1,690
1,760
1,798

Other operating funding applications
11,509
12,177
12,306

Total applications of operating funding (B)
16,138
17,193
17,235

Surplus (deficit) of operating funding (A - B)
835
866
886

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
43
40
10

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
43
40
10

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
43
40
10

- to replace existing assets
-
-
-

Increase (decrease) in reserves
835
866
886

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
878
906
896

Surplus (deficit) of capital funding (C - D)
(835)
(866)
(886)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
835
866
867

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).

5.1 Recreation promotion and supportTop

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

General rates, uniform annual general charges, rates penalties
23,494
23,011
23,011

Targeted rates (other than a targeted rate for water supply)
657
850
850

Subsidies and grants for operating purposes
222
396
597

Fees, charges, and targeted rates for water supply¹
10,803
11,490
10,249

Internal charges and overheads recovered
989
1,025
988

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

Total operating funding (A)
36,165
36,772
35,695

Applications of operating funding

Payments to staff and suppliers
16,557
16,484
16,209

Finance costs
-
-
-

Internal charges and overheads applied
13,108
13,063
13,197

Other operating funding applications
225
400
405

Total applications of operating funding (B)
29,890
29,947
29,811

Surplus (deficit) of operating funding (A - B)
6,275
6,825
5,884

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
17

Development and financial contributions
659
466
308

Increase (decrease) in debt
3,957
3,563
3,216

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
4,616
4,029
3,541

Applications of capital funding

Capital expenditure

- to meet additional demand
1,706
1,502
1,433

- to improve the level of service
2,910
2,061
1,783

- to replace existing assets
5,147
3,227
3,069

Increase (decrease) in reserves
1,128
4,064
3,140

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
10,891
10,854
9,425

Surplus (deficit) of capital funding (C - D)
(6,275)
(6,825)
(5,884)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
6,275
6,913
6,828

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).

5.2 Community participation and supportTop

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

General rates, uniform annual general charges, rates penalties
24,654
21,744
21,744

Targeted rates (other than a targeted rate for water supply)
4,337
4,410
4,410

Subsidies and grants for operating purposes
902
1,124
1,102

Fees, charges, and targeted rates for water supply¹
19,192
18,650
19,435

Internal charges and overheads recovered
987
1,222
1,093

Local authorities fuel tax, fines, infringement fees, and other receipts
991
1,029
632

Total operating funding (A)
51,063
48,179
48,416

Applications of operating funding

Payments to staff and suppliers
24,374
25,034
23,201

Finance costs
-
-
-

Internal charges and overheads applied
10,921
11,049
11,155

Other operating funding applications
5,050
3,524
3,382

Total applications of operating funding (B)
40,345
39,607
37,738

Surplus (deficit) of operating funding (A - B)
10,718
8,572
10,678

Sources of capital funding

Subsidies and grants for capital expenditure
42,702
34,600
28,088

Development and financial contributions
-
88
58

Increase (decrease) in debt
267
(88)
(155)

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
42,969
34,600
27,991

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
43,023
34,293
27,986

- to replace existing assets
5,222
5,311
5,976

Increase (decrease) in reserves
5,442
3,568
4,707

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
53,687
43,172
38,669

Surplus (deficit) of capital funding (C - D)
(10,718)
(8,572)
(10,678)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
10,484
11,480
12,478

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).

5.3 Public health and safetyTop

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

General rates, uniform annual general charges, rates penalties
9,130
8,409
8,409

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

Subsidies and grants for operating purposes
10
10
84

Fees, charges, and targeted rates for water supply¹
3,134
3,287
3,469

Internal charges and overheads recovered
646
666
688

Local authorities fuel tax, fines, infringement fees, and other receipts
74
57
52

Total operating funding (A)
12,994
12,429
12,702

Applications of operating funding

Payments to staff and suppliers
7,923
7,364
8,051

Finance costs
-
-
-

Internal charges and overheads applied
4,420
4,388
3,970

Other operating funding applications
17
25
20

Total applications of operating funding (B)
12,360
11,777
12,041

Surplus (deficit) of operating funding (A - B)
634
652
661

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
5
15
10

Increase (decrease) in debt
573
33
38

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
578
48
48

Applications of capital funding

Capital expenditure

- to meet additional demand
19
9
9

- to improve the level of service
559
39
39

- to replace existing assets
381
633
796

Increase (decrease) in reserves
253
19
(135)

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
1,212
700
709

Surplus (deficit) of capital funding (C - D)
(634)
(652)
(661)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
634
658
564

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).

6.1 Urban planning, heritage and public spaces developmentTop

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

General rates, uniform annual general charges, rates penalties
5,985
7,040
7,040

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

Subsidies and grants for operating purposes
-
-
-

Fees, charges, and targeted rates for water supply¹
33
20
4

Internal charges and overheads recovered
-
-
-

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

Total operating funding (A)
6,018
7,060
7,044

Applications of operating funding

Payments to staff and suppliers
1,518
1,895
1,503

Finance costs
-
-
-

Internal charges and overheads applied
3,095
3,709
3,155

Other operating funding applications
1,405
1,455
4,425

Total applications of operating funding (B)
6,018
7,059
9,083

Surplus (deficit) of operating funding (A - B)
-
1
(2,039)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
31

Development and financial contributions
-
-
-

Increase (decrease) in debt
6,197
1,208
446

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
6,197
1,208
477

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
6,197
1,208
477

- to replace existing assets
-
5,360
9,056

Increase (decrease) in reserves
-
(5,359)
(11,095)

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
6,197
1,209
(1,562)

Surplus (deficit) of capital funding (C - D)
-
(1)
2,039

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

Expenses for this activity grouping include the following depreciation/amortisation charge
-
1
11

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).

6.2 Building and development managementTop

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

General rates, uniform annual general charges, rates penalties
7,886
8,053
8,053

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

Subsidies and grants for operating purposes
-
-
-

Fees, charges, and targeted rates for water supply¹
11,111
10,611
10,237

Internal charges and overheads recovered
-
90
-

Local authorities fuel tax, fines, infringement fees, and other receipts
20
55
(29)

Total operating funding (A)
19,017
18,809
18,261

Applications of operating funding

Payments to staff and suppliers
11,017
10,733
9,693

Finance costs
-
-
-

Internal charges and overheads applied
7,988
8,005
8,141

Other operating funding applications
-
35
4

Total applications of operating funding (B)
19,005
18,773
17,838

Surplus (deficit) of operating funding (A - B)
12
36
423

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
491
2,977
2,193

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
491
2,977
2,193

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
491
2,977
2,193

- to replace existing assets
-
-
-

Increase (decrease) in reserves
12
36
423

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
503
3,013
2,616

Surplus (deficit) of capital funding (C - D)
(12)
(36)
(423)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
12
36
42

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).

7.1 TransportTop

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

General rates, uniform annual general charges, rates penalties
26,766
27,666
27,666

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

Subsidies and grants for operating purposes
4,002
4,166
3,729

Fees, charges, and targeted rates for water supply¹
1,888
2,057
1,879

Internal charges and overheads recovered
-
-
-

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

Total operating funding (A)
32,656
33,922
33,307

Applications of operating funding

Payments to staff and suppliers
11,220
11,526
11,646

Finance costs
-
-
-

Internal charges and overheads applied
10,330
10,086
9,044

Other operating funding applications
-
-
4

Total applications of operating funding (B)
21,550
21,612
20,694

Surplus (deficit) of operating funding (A - B)
11,106
12,310
12,613

Sources of capital funding

Subsidies and grants for capital expenditure
14,347
10,101
10,659

Development and financial contributions
1,068
987
1,332

Increase (decrease) in debt
7,814
3,134
6,948

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
23,229
14,222
18,939

Applications of capital funding

Capital expenditure

- to meet additional demand
812
604
58

- to improve the level of service
13,739
5,900
11,163

- to replace existing assets
22,914
25,754
28,585

Increase (decrease) in reserves
(3,130)
(5,726)
(8,254)

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
34,335
26,532
31,552

Surplus (deficit) of capital funding (C - D)
(11,106)
(12,310)
(12,613)

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

Expenses for this activity grouping include the following depreciation/amortisation charge
20,710
20,093
19,318

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).

7.2 Parking servicesTop

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Sources of operating funding

General rates, uniform annual general charges, rates penalties
(15,498)
(16,785)
(16,785)

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

Subsidies and grants for operating purposes
-
-
-

Fees, charges, and targeted rates for water supply¹
17,408
17,814
17,575

Internal charges and overheads recovered
-
-
-

Local authorities fuel tax, fines, infringement fees, and other receipts
10,133
9,850
7,850

Total operating funding (A)
12,043
10,879
8,640

Applications of operating funding

Payments to staff and suppliers
10,785
11,075
9,915

Finance costs
-
-
-

Internal charges and overheads applied
581
586
619

Other operating funding applications
-
-
(290)

Total applications of operating funding (B)
11,366
11,661
10,244

Surplus (deficit) of operating funding (A - B)
677
(782)
(1,604)

Sources of capital funding

Subsidies and grants for capital expenditure
-
-
-

Development and financial contributions
-
-
-

Increase (decrease) in debt
297
-
-

Gross proceeds from sales of assets
-
-
-

Lump sum contributions
-
-
-

Total sources of capital funding (C)
297
-
-

Applications of capital funding

Capital expenditure

- to meet additional demand
-
-
-

- to improve the level of service
297
-
-

- to replace existing assets
1,020
-
(3)

Increase (decrease) in reserves
(343)
(782)
(1,601)

Increase (decrease) in investments
-
-
-

Total applications of capital funding (D)
974
(782)
(1,604)

Surplus (deficit) of capital funding (C - D)
(677)
782
1,604

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

Expenses for this activity grouping include the following depreciation/amortisation charge
677
373
457

¹ Included in this figure is the metered water rates (applicable to Funding Impact Statement for Water).

Capital expenditure funding by strategic areaTop

Annual plan
2011/12
$000
LTP
2012/13
$000
Actual
2012/13
$000

Strategic Area

Governance

- to meet additional demand
-
-
-

- to improve the level of service
-
-
-

- to replace existing assets
-
-
19

Total Governance
-
-
19

Environment

- to meet additional demand
52
587
560

- to improve the level of service
9,221
3,962
5,432

- to replace existing assets
21,337
22,637
20,971

Total Environment
30,610
27,186
26,963

Economic Development

- to meet additional demand
-
-
-

- to improve the level of service
-
4,011
2,419

- to replace existing assets
2,201
1,483
894

Total Economic Development
2,201
5,494
3,313

Cultural Well-being

- to meet additional demand
-
-
-

- to improve the level of service
43
40
10

- to replace existing assets
-
-
-

Total Cultural Wellbeing
43
40
10

Social and Recreation

- to meet additional demand
1,725
1,511
1,442

- to improve the level of service
46,492
36,393
29,808

- to replace existing assets
10,750
9,171
9,841

Total Social and Recreation
58,967
47,075
41,091

Urban Development

- to meet additional demand
-
-
-

- to improve the level of service
6,688
4,185
2,670

- to replace existing assets
-
5,360
9,056

Total Urban Development
6,688
9,545
11,726

Transport

- to meet additional demand
812
604
58

- to improve the level of service
14,036
5,900
11,163

- to replace existing assets
23,934
25,754
28,582

Total Transport
38,782
32,258
39,803

Council organisation

- to meet additional demand
-
-
1,121

- to improve the level of service
-
-
1,193

- to replace existing assets
16,231
14,539
8,878

Total Council organisation
16,231
14,539
11,192

Total Council

- to meet additional demand
2,589
2,702
3,181

- to improve the level of service
76,480
54,491
52,695

- to replace existing assets
74,453
78,944
78,241

TOTAL COUNCIL
153,522
136,137
134,117

Statement of Compliance and Responsibility

Compliance

Responsibility

Compliance

The Council and management of Wellington City Council confirm that all the statutory requirements in relation to the Annual Report, as outlined in Schedule 10 of the Local Government Act 2002, have been complied with.

ResponsibilityTop

The Council and management accept responsibility for the preparation of the annual financial statements and judgements used in them. They also accept responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting.

In the opinion of the Council and management, the annual financial statements for the year ended 30 June 2013 fairly reflect the financial position, results of operations and service performance achievements of Wellington City Council and Group.

Celia Wade-Brown
Mayor
Kevin Lavery
Chief Executive
Andy Matthews
Acting Chief Financial Officer

28 August 2013
28 August 2013
28 August 2013

Statement of Comprehensive Financial Performance

For the year ended 30 June 2013

Council
Group24

Note
Actual
2013
$000
Budget
2013
$000
Actual
2012
$000
Actual
2013
$000
Actual
2012
$000

INCOME

Revenue from rates

Revenue from rates (excluding metered water)

1
226,022
226,603
217,908
226,022
217,908

Revenue from water rates by meter

1
11,366
12,822
12,356
11,366
12,356

Operating Activities

Revenue from development contributions

2
4,356
5,000
3,434
4,356
3,434

Revenue from grants, subsidies and reimbursements

2
46,795
52,596
69,523
51,076
76,420

Revenue from other operating activities

2
111,056
99,395
108,529
122,608
119,518

Revenue from investments
3
23,590
18,464
34,929
12,668
12,493

Total Revenue

423,185
414,880
446,679
428,096
442,129

Fair value movement on investment property revaluation
17
5,385
-
-
5,385
-

Other income
4
14,706
1,164
16,451
14,719
16,468

Finance income
5
3,139
562
2,202
3,497
2,493

TOTAL INCOME

446,415
416,606
465,332
451,697
461,090

EXPENSE

Finance expense
5
(23,150)
(22,647)
(21,578)
(23,152)
(21,670)

Expenditure on operating activities
6
(303,930)
(264,830)
(288,611)
(318,740)
(304,680)

Depreciation and amortisation
7
(91,148)
(91,703)
(88,537)
(91,977)
(89,356)

Fair value movement on related party loans
13
-
-
(1,002)
-
(1,002)

Fair value movement on investment property revaluation
17
-
-
(3,418)
-
(3,418)

TOTAL EXPENSE

(418,228)
(379,180)
(403,146)
(433,869)
(420,126)

TOTAL OPERATING SURPLUS

28,187
37,426
62,186
17,828
40,964

Share of equity accounted surplus/(deficit) from associates
41
-
-
-
12,705
9,105

NET SURPLUS BEFORE TAXATION

28,187
37,426
62,186
30,533
50,069

Income tax expense
8
-
-
-
(91)
(107)

NET SURPLUS for the year

28,187
37,426
62,186
30,442
49,962

OTHER COMPREHENSIVE INCOME

Adjustment for wind-up of St James
40
-
-
14,577
-
-

Revaluations:

Fair value movement - property, plant and equipment - net
25
-
-
48,612
-
48,612

Cash flow hedges:

Fair value movement - net
26
14,104
-
(14,455)
14,104
(14,455)

Reclassification to finance income
26
(163)
-
(268)
(163)
(268)

Fair value through other comprehensive income:

Fair value movement - financial assets - net
27
(61)
(432)
(594)
(61)
(594)

Share of other comprehensive income of associates:

Fair value movement - property, plant and equipment - net
25
-
-
-
-
33,437

Reclassification to share of equity accounted surplus
26
-
-
-
153
1,072

Adjustment - disposal of a subsidiary by an associate
41
-
-
-
-
1,745

TOTAL OTHER COMPREHENSIVE INCOME

13,880
(432)
47,872
14,033
69,549

TOTAL COMPREHENSIVE INCOME for the year

42,067
36,994
110,058
44,475
119,511

The notes on page 110 to 188 form part of and should be read in conjunction with these financial statements.

24 The Group includes the Council, the subsidiaries disclosed in Note 40, and the Council’s interest in the associates disclosed in Note 41. A structural diagram of the Group is shown in Note 38.

Explanation of Council’s Net Surplus

Net surplus and total comprehensive income

Budgeted net surplus

Difference between budgeted and actual net surplus

Underlying funding surplus/(deficit)

Net surplus and total comprehensive income

The Council has recorded a net surplus of $28.187 million for the year. This is $9.239 million less than the budgeted net surplus of $37.426 million.

Total comprehensive income of $42.067 million includes fair value movements of some of our assets including plant and equipment and cash flow hedges.

Budgeted net surplusTop

The majority of the budgeted net surplus is due to funding received from the Crown to fund capital expenditure projects. External funding for capital expenditure is recorded in financial statements as income in the Statement of Comprehensive Income but the capital expenditure is not. In the 2012/13 year the external funding for capital expenditure was budgeted to be $44.889 million and the actual external funding received was $39.603 million.

Difference between budgeted and actual net surplusTop

| $000
Budgeted Net Surplus | 37,426
Value of assets vested to Council | 10,519
These are assets transferred between the Council and an external party and are recognised as revenue or expense accordingly. The majority are infrastructural assets that have been constructed by developers and transferred to the Council on completion. |
Net fair value gain/(loss) | 5,683
These amounts reflect changes in the fair value of our investment properties, loans to related parties and interest rate swaps. These movements are non-cash in nature. |
Net surplus/(deficit) from Wellington Waterfront and Venues Projects and joint ventures | (6,764)
The financial performance (deficit) of these entities is not included in the budget and is subtracted. (Excludes fair value movements and gains or losses on the disposal of assets which are shown separately) |
Changes to External Funding for Capital Expenditure | (6,675)
This income is received for specific capital projects and cannot be used to fund operating expenditure. |
Net gain/(loss) on disposal of fixed assets | (1,127)
Council does not budget for gains or losses on the disposal of assets |
Other changes | 548
Certain depreciation charges are not funded through rates as they are either fully or partly funded by external parties |
Ringfenced surpluses/(deficits) | 1,872
Surpluses and deficits from our housing and waste activities are ringfenced. Deficits are not rates funded. |
Underlying funding surplus/(deficit) | (13,295)
Further breakdown follows |
Actual Net Surplus | 28,187

Underlying funding surplus/(deficit)Top

Underlying net surplus/deficit is the portion of the overall net surplus/(deficit) that has arisen from changes to operating income operational expenditure as compared to budget. The underlying funding surplus/(deficit) is an important measure of the overall financial performance of the Council during the year.

The Council has recorded an underlying funding deficit in the current year of $13.295 million. This has arisen because the Council recorded expenditure relating to a reassessment of the provision for weathertight homes which has been partially offset by net savings in operational expenditure.

$000

Unbudgeted net revenue/(expenditure)

Restatement of weathertight homes provision
(14,965)

Provision for storm costs
(855)

Insurance costs (net of recoveries) funded through self insurance reserve
(451)

Significant changes in net revenue/(expenditure)

Dividends in excess of budget 
(including Wellington Intl Airport Ltd)
1,624

Decrease in income from activities
(3,276)

Decrease in depreciation
2,820

Decrease in rates revenue
(2,228)

Decrease in net interest expense
1,997

Other net variances
2,039

Total underlying funding deficit
(13,295)

The movement in the weathertight homes provision is separately funded through a combination of rates and borrowings so is added back to calculate the underlying surplus available for use. The Council has already agreed to use $3 million of the 2012/13 surplus to fund the Wellington Economic Initiatives Development Fund and therefore has an underlying funding surplus to carry forward of $10.513 million.

| $000
Opening underlying funding surplus from previous years | 1,940
Items separately rates funded in prior year |
Movement in weathertight Homes Provision | 9,903
Underlying surplus carried forward from previous years | 11,843
Movement in underlying funding deficit from this years result | (13,295)
Items separately rates funded |
Movement in weathertight Homes Provision | 14,965
Adjusted available underlying surplus | 13,513
Transfer to reserves |
Funding Wellington Economic Initiatives Development Fund | (3,000)
Remaining underlying funding surplus to carry forward | 10,513

See note 33: Major Budget Variations for more information.

Statement of Changes in Equity

For the year ended 30 June 2013

Council
Group

Note
Actual
2013
$000
Budget
2013
$000
Actual
2012
$000
Actual
2013
$000
Actual
2012
$000

EQUITY - Opening balances

Accumulated funds and retained earnings
24
4,897,679
4,870,224
4,819,507
4,943,343
4,890,529

Revaluation reserves
25
1,417,693
1,414,606
1,369,106
1,529,500
1,447,476

Hedging reserve
26
(23,896)
(9,173)
(9,173)
(24,050)
(10,399)

Fair value through other comprehensive income reserve
27
154
748
748
154
748

Restricted funds
28
14,701
16,018
16,085
17,301
18,383

TOTAL EQUITY - Opening balance

6,306,331
6,292,423
6,196,273
6,466,248
6,346,737

CHANGES IN EQUITY

Retained earnings

Net surplus for the year
24
28,187
37,426
62,186
30,442
49,962

Adjustment for wind-up of St James

-
-
14,577
-
-

Adjustment - disposal of a subsidiary by an associate
41
-
-
-
-
1,745

Transfer to restricted funds
24
(4,072)
(765)
(517)
(4,639)
(1,273)

Transfer from restricted funds
24
813
765
1,901
1,293
2,355

Transfer from revaluation reserves
24
370
-
25
370
25

Revaluation reserves

Fair value movement - property, plant and equipment - net
25
-
-
48,612
-
82,049

Transfer to retained earnings
25
(370)
-
(25)
(370)
(25)

Hedging reserve

Movement in hedging reserve
26
13,941
-
(14,723)
14,094
(13,651)

Fair value through other comprehensive income reserve

Movement in fair value
27
(61)
(432)
(594)
(61)
(594)

Restricted funds

Transfer to retained earnings
28
(813)
(765)
(1,901)
(1,293)
(2,355)

Transfer from retained earnings
28
4,072
765
517
4,639
1,273

Total comprehensive income

42,067
36,994
110,058
44,475
119,511

EQUITY - Closing balances

Accumulated funds and retained earnings
24
4,922,977
4,907,650
4,897,679
4,970,809
4,943,343

Revaluation reserves
25
1,417,323
1,414,606
1,417,693
1,529,130
1,529,500

Hedging reserve
26
(9,955)
(9,173)
(23,896)
(9,956)
(24,050)

Fair value through other comprehensive income reserve
27
93
316
154
93
154

Restricted funds
28
17,960
16,018
14,701
20,647
17,301

TOTAL EQUITY - Closing balance

6,348,398
6,329,417
6,306,331
6,510,723
6,466,248

The notes on pages 110 to 188 form part of and should be read in conjunction with these financial statements.

Statement of Financial Position

As at 30 June 2013

Council
Group

Note
Actual
2013
$000
Budget
2013
$000
Actual
2012
$000
Actual
2013
$000
Actual
2012
$000

ASSETS

Current assets

Cash and cash equivalents
10
44,389
19,641
22,622
50,518
26,912

Derivative financial assets
11
409
-
108
409
108

Trade and other receivables
12
49,556
38,090
41,658
52,047
43,541

Prepayments

15,048
5,869
14,211
15,233
14,309

Inventories
14
875
1,134
866
1,901
2,017

Non-current assets classified as held for sale
15
272
-
949
272
949

Total current assets

110,549
64,734
80,414
120,380
87,836

Non-current assets

Derivative financial assets
11
3,280
1,275
949
3,280
949

Trade and other receivables
12
-
-
12,675
-
12,675

Other financial assets
13
8,369
6,814
7,842
8,769
9,362

Intangibles
16
13,549
8,350
12,169
13,588
12,277

Investment properties
17
205,951
203,742
200,474
205,951
200,474

Property, plant and equipment
18
6,546,292
6,533,338
6,501,686
6,558,933
6,514,367

Investment in subsidiaries
40
3,809
3,809
3,809
-
-

Investment in associates
41
19,519
19,519
19,519
170,453
168,424

Total non-current assets

6,800,769
6,776,847
6,759,123
6,960,974
6,918,528

TOTAL ASSETS

6,911,318
6,841,581
6,839,537
7,081,354
7,006,364

LIABILITIES

Current liabilities

Derivative financial liabilities
11
404
26
469
404
469

Trade and other payables
19
57,945
60,435
53,217
62,352
56,715

Revenue in advance
20
11,405
10,320
11,889
11,892
12,643

Borrowings
21
155,562
92,067
129,572
155,565
129,574

Employee benefit liabilities and provisions
22
5,698
5,694
6,638
6,988
7,936

Provision for other liabilities
23
34,501
11,708
32,209
34,501
32,209

Total current liabilities

265,515
180,250
233,994
271,702
239,546

Non-current liabilities

Deferred tax
9
-
-
-
1,427
1,196

Derivative financial liabilities
11
12,831
10,062
23,812
12,831
23,812

Trade and other payables
19
630
-
630
630
630

Borrowings
21
232,768
281,601
232,046
232,775
232,057

Employee benefit liabilities and provisions
22
1,474
1,600
1,649
1,564
1,800

Provision for other liabilities
23
49,702
38,651
41,075
49,702
41,075

Total non-current liabilities

297,405
331,914
299,212
298,929
300,570

TOTAL LIABILITIES

562,920
512,164
533,206
570,631
540,116

EQUITY

Accumulated funds and retained earnings
24
4,922,977
4,907,650
4,897,679
4,970,809
4,943,343

Revaluation reserves
25
1,417,323
1,414,606
1,417,693
1,529,130
1,529,500

Hedging reserve
26
(9,955)
(9,173)
(23,896)
(9,956)
(24,050)

Fair value through other comprehensive income reserve
27
93
316
154
93
154

Restricted funds
28
17,960
16,018
14,701
20,647
17,301

TOTAL EQUITY

6,348,398
6,329,417
6,306,331
6,510,723
6,466,248

TOTAL EQUITY AND LIABILITIES

6,911,318
6,841,581
6,839,537
7,081,354
7,006,364

The notes on pages 110 to 188 form part of and should be read in conjunction with these financial statements

Statement of Cash Flows

For the year ended 30 June 2013

Council
Group

Note
Actual
2013
$000
Budget
2013
$000
Actual
2012
$000
Actual
2013
$000
Actual
2012
$000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from rates - Council (excluding metered water)

225,077
226,745
218,440
225,077
218,440

Receipts from water rates by meter

11,373
12,822
12,356
11,373
12,356

Receipts from rates - Greater Wellington Regional Council

46,517
-
43,789
46,517
43,789

Receipts from activities and other income

116,087
105,417
102,336
134,271
116,109

Receipts from grants and subsidies - operating

6,913
6,831
7,452
11,168
12,744

Receipts from grants and subsidies - capital

45,938
45,765
55,644
46,377
51,720

Receipts from investment property lease rentals

13,508
9,166
13,333
13,649
13,481

Cash paid to suppliers and employees

(254,770)
(240,674)
(243,401)
(285,646)
(266,379)

Rates paid to Greater Wellington Regional Council

(50,410)
-
(44,703)
(50,410)
(44,703)

Grants paid

(32,811)
(29,328)
(38,932)
(22,959)
(29,739)

Income tax paid

-
-
-
-
(49)

Net GST (paid)/received

(455)
-
1,260
(1,246)
1,310

NET CASH FLOWS FROM OPERATING ACTIVITIES

126,967
136,744
127,574
128,171
129,079

CASH FLOWS FROM INVESTING ACTIVITIES

Dividends received

10,922
9,298
22,436
10,922
22,426

Interest received

1,642
10
951
1,856
1,110

Decrease in bank investments

-

-
1,532
-

Proceeds from sale of property, plant and equipment

3,492
-
2,023
3,492
2,023

Increase in investments

(123)
-
(2,240)
(523)
(2,630)

Purchase of investment properties

(92)
-
(150)
(92)
(150)

Purchase of intangibles

(4,877)
(4,563)
(4,677)
(4,886)
(4,693)

Purchase of property, plant and equipment

(122,260)
(151,574)
(151,994)
(122,962)
(153,052)

NET CASH FLOWS FROM INVESTING ACTIVITIES

(111,296)
(146,829)
(133,651)
(110,661)
(134,966)

CASH FLOWS FROM FINANCING ACTIVITIES

New borrowings

156,360
31,662
158,299
156,360
158,299

Repayment of borrowings

(129,000)
-
(129,000)
(129,000)
(129,000)

Interest paid on borrowings

(21,264)
(21,577)
(20,241)
(21,264)
(20,332)

NET CASH FLOWS FROM FINANCING ACTIVITIES

6,096
10,085
9,058
6,096
8,967

Net increase/(decrease) in cash and cash equivalents

21,767
-
2,981
23,606
3,080

Cash and cash equivalents at beginning of year

22,622
19,641
19,641
26,912
23,832

CASH AND CASH EQUIVALENTS AT END OF YEAR
10
44,389
19,641
22,622
50,518
26,912

Wellington City Council acts as a collection agency for Greater Wellington Regional Council (GWRC) by including additional rates and levies in its own billing process. Once collected, the monies are passed to GWRC. The budget assumes that the inflows and outflows will offset each other and are shown as nil accordingly.

The Council has ringfenced cash of $14.075 million relating to the housing upgrade project and waste activities; this has been offset against borrowings. See Note 21: Borrowings for more information.

The notes on pages 110 to 188 form part of and should be read in conjunction with these financial statements.

The net surplus from the Statement of Comprehensive Financial Performance is reconciled to the net cash flows from operating activities in the Statement of Cash Flows as follows:

Reconciliation of net surplus to net cash flows from operating activities

Council
Group

Note
2013
$000
2012
$000
2013
$000
2012
$000

Net surplus for the period

28,187
62,186
30,442
49,962

Add/(deduct) non-cash items:

Net vested assets/expense
4
(10,519)
(7,163)
(10,519)
(7,191)

Bad debts written-off not previously provided for
6
-
78
-
78

Depreciation and amortisation
7
91,148
88,537
91,958
89,356

Fair value changes in investment properties
17
(5,385)
3,418
(5,385)
3,418

Other fair value changes

(850)
100
(566)
30

Movement in provision for impairment of doubtful debts

(179)
(72)
(217)
(72)

Tax expense

-
-
22
81

Non-cash movement in provisions

15,852
9,887
15,851
9,887

Total non-cash items

90,067
94,785
91,144
95,587

Add/(deduct) movement in working capital:25

Trade and other receivables

5,066
(16,249)
5,507
(17,682)

Prepayments

(837)
(8,342)
(941)
(7,978)

Trade and other payables

1,262
6,422
1,127
7,592

Revenue in advance

(484)
1,569
(751)
1,140

Inventories

(9)
268
118
94

Employee benefit liabilities

(1,115)
993
1,243)
1,103

Provision for other liabilities

(4,997)
(4,441)
(4,993)
(4,378)

Total working capital movement

(1,114)
(19,780)
(1,176)
(20,109)

Add/(deduct) investing and financing activities:

Net loss / (gain) on disposal of property, plant and equipment

1,127
(6,471)
1,162
(6,470)

Dividends received

(10,922)
(22,436)
(94)
-

Interest received

(1,642)
(951)
(1,863)
(1,110)

Interest paid on borrowings

21,264
20,241
21,261
20,332

Share of equity accounted surplus from associates

-
-
(12,705)
(9,113)

Total investing and financing activities

9,827
(9,617)
7,761
3,639

Net cash flow from operating activities

126,967
127,574
128,171
129,079

The notes on pages 110 to 188 form part of and should be read in conjunction with these financial statements.

25 Excluding non-cash items.

Notes forming part of the financial statements

Summary of significant accounting policies

Reporting entity

Basis of preparation

Judgements and estimations

Basis of consolidation

Income

Taxation

Goods and Services Tax (GST)

Financial instruments

Inventories

Investment properties

Non-current assets classified as held for sale

Property, plant and equipment

Intangible assets

Research and Development

Leases

Employee benefit liabilities

Provisions

Equity

Contingent assets and liabilities

Statement of cash flows

Related parties

Budget figures

Cost allocation

Comparatives

Note 1: Revenue from rates

Note 2: Revenue from operating activities

Note 3: Revenue from investments

Note 4: Other income

Note 5: Finance income and expense

Note 6: Expenditure on operating activities

Note 7: Depreciation and amortisation

Note 8: Income tax expense

Note 9: Deferred tax assets and liabilities

Note 10: Cash and cash equivalents

Note 11: Derivative financial instruments

Note 12: Trade and other receivables

Note 13: Other financial assets

Note 14: Inventories

Note 15: Non-current assets classified as held for sale

Note 16: Intangibles

Note 17: Investment properties

Note 18: Property, plant and equipment

Note 19: Trade and other payables

Note 20: Revenue in advance

Note 21: Borrowings

Note 22: Employee benefit liabilities and provisions

Note 23: Provision for other liabilities

Note 24: Accumulated funds and retained earnings

Note 25: Revaluation reserves

Note 26: Hedging reserve

Note 27: Fair value through other comprehensive income reserve

Note 28: Restricted funds

Note 29: Special reserves and funds

Note 30: Trusts and bequests

Note 31: Financial Instruments

Note 32: Analysis of Operating Surplus by Strategic Area

Note 33: Major budget variations

Note 34: Analysis of capital expenditure by strategic area

Note 35: Capital expenditure performance

Note 36: Commitments

Note 37: Contingencies

Note 38: Group structure

Note 39: Joint ventures

Note 40: Investment in Subsidiaries

Note 41: Investment in Associates

Note 42 : Related party disclosures

Note 43: Remuneration and staffing

Note 44: Events after the end of the reporting period

For the year ended 30 June 2013

|  | Page
Summary of significant accounting policies | 110
Note |  |
1 | Revenue from rates | 121
2 | Revenue from operating activities | 122
3 | Revenue from investments | 123
4 | Other income | 123
5 | Finance income and expense | 124
6 | Expenditure on operating activities | 125
7 | Depreciation and amortisation | 126
8 | Income tax expense | 127
9 | Deferred tax assets and liabilities | 128
10 | Cash and cash equivalents | 128
11 | Derivative financial instruments | 129
12 | Trade and other receivables | 130
13 | Other financial assets | 132
14 | Inventories | 133
15 | Non-current assets classified as held for sale | 133
16 | Intangibles | 134
17 | Investment properties | 135
18 | Property, plant and equipment | 136
19 | Trade and other payables | 141
20 | Revenue in advance | 141
21 | Borrowings | 142
22 | Employee benefit liabilities and provisions | 145
23 | Provision for other liabilities | 147
24 | Accumulated funds and retained earnings | 151
25 | Revaluation reserves | 152
26 | Hedging reserve | 153
27 | Fair value through other comprehensive income reserve | 153
28 | Restricted funds | 153
29 | Special and Council-created reserves and funds | 154
30 | Trusts and bequests | 155
31 | Financial instruments | 156
32 | Analysis of operating surplus by strategic area | 163
33 | Major budget variations | 165
34 | Analysis of capital expenditure by strategic area | 167
35 | Capital expenditure performance | 169
36 | Commitments | 171
37 | Contingencies | 173
38 | Group structure | 175
39 | Joint ventures | 176
40 | Investment in subsidiaries | 177
41 | Investment in associates | 178
42 | Related party disclosures | 182
43 | Remuneration and staffing levels | 185
44 | Events after the end of the reporting period | 188

Summary of significant accounting policies

Reporting entityTop

Wellington City Council is a territorial local authority governed by the Local Government Act 2002.

The primary objective of the Council and Group is to provide goods or services for community or social benefits rather than making a financial return. Accordingly, for the purposes of financial reporting, Wellington City Council is a public benefit entity.

The financial statements include the Council and Group. A Group structural diagram is included in Note 38. The Council includes the results and operations of Wellington City Council as a separate legal entity, the Council’s interests in the joint ventures as disclosed in Note 39 and both the Wellington Waterfront and Wellington Venues projects. The Group includes the Council, the subsidiaries disclosed in Note 40, and the Council’s interest in the associates disclosed in Note 41. All entities included within the Group are domiciled in Wellington, New Zealand.

The financial statements of the Council and Group are for the year ended 30 June 2013 and were authorised for issue by Council on 28 August 2013.

Basis of preparationTop

Statement of compliance

The 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 financial statements comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable Financial Reporting Standards, as appropriate for public benefit entities.

Measurement base

The measurement basis applied is historical cost, modified by the revaluation of certain assets and liabilities as identified in this summary of significant accounting policies. The accrual basis of accounting has been used unless otherwise stated.

For the assets and liabilities recorded at fair value, fair value is defined as the amount for which an item could be exchanged, or a liability settled, between knowledgeable and willing parties in an arm’s-length transaction. For investment property, non-current assets classified as held for sale and items of property, plant and equipment which are revalued, the fair value is determined by reference to market value. The market value of a property is the estimated amount for which a property could be exchanged on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction.

Amounts expected to be recovered or settled more than one year after the end of the reporting period are recognised at their present value. The present value of the estimated future cash flows is calculated using applicable inflation factors and a discount rate. The inflation rates used are obtained from the latest relevant BERL forecasts and the discount rate is the Council’s forecast long-term cost of borrowing.

The 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 consolidated financial statements.

Change of accounting policies

There have been no changes in accounting policies during the financial period.

Standards, amendments and interpretations issued but not yet effective and not early adopted

Standards, amendments and interpretations issued but not yet effective that have not been early adopted and which are relevant to the Council include:

NZ IFRS 9 Financial Instruments and NZ IFRS 9 Financial Instruments (2010) – The Council has previously made the decision not to early adopt NZ IFRS 9 Financial Instruments to replace NZ IAS 39 Financial Instruments: Recognition and Measurement, as not all phases of NZ IFRS 9 have been completed and authorised for use. The effective date for adoption by the Council is 1 July 2015.

The suite of approved accounting standards currently applicable for Public Benefit Entities (PBE) is temporarily frozen pending the development of a new set of New Zealand public sector accounting standards (PAS) based on the International Public Sector Accounting Standards (IPSAS). The expected transition date to the new standards is 1 July 2014.

An interim ‘new’ set of standards (NZ IFRS PBE) with effect for periods beginning on or after 1 December 2012 will replace the ‘old’ NZ IFRS with PBE paragraphs. There are no differences between the ‘old’ and ‘new’ sets of standards.

No disclosures have been made in regard to new or amended NZ IFRS that are presently only applicable to ‘for profit’ entities.

Judgements and estimationsTop

The preparation of financial statements using NZ IFRS requires the use of judgements, estimates and assumptions. Where material, information on the main assumptions is provided in the relevant accounting policy or in the relevant note.

The estimates and assumptions are based on historical experience as well as other factors that are believed to be reasonable under the circumstances. Subsequent actual results may differ from these estimates.

The estimates and assumptions are reviewed on an ongoing basis and adjustments are made where necessary.

Judgements that have a significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in the relevant notes. Significant judgements and estimations include landfill post-closure costs, asset revaluations, impairments, certain fair value calculations and provisions.

Basis of consolidationTop

The Group includes joint ventures, subsidiaries and associates. A Group structure diagram is included in Note 38.

Joint ventures

Joint ventures are contractual arrangements with other parties to undertake a jointly controlled operation. The Council has a liability in respect of its share of joint ventures’ deficits and liabilities, and shares in any surpluses and assets. The Council’s proportionate interest in the assets, liabilities, revenue and expenditure is included in the financial statements of the Council and Group on a line-by-line basis.

Subsidiaries

Subsidiaries are entities that are controlled by the Council. In the Council financial statements, the investment in subsidiaries are carried at cost. In the Group financial statements, subsidiaries are accounted for using the purchase method where assets, liabilities, revenue and expenditure is added in on a line-by-line basis.

All significant transactions between Group entities, other than rates, are eliminated on consolidation. Rates are charged on an arm’s-length basis and are not eliminated to ensure that reported costs and revenues are consistent with the Council’s Annual Plan.

Associates

Associates are entities where the Council has significant influence, but not control, over their operating and financial policies. In the Council financial statements, the investments in associates are carried at cost. In the Group financial statements, the Council’s share of the assets, liabilities, revenue and expenditure of associates is included on an equity accounting basis as a single line.

IncomeTop

Income comprises revenue, gains and finance income and is measured at the fair value of consideration received or receivable. Specific accounting policies for major categories of income 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 proportionately throughout the year.

Operating activities

Grants, subsidies and reimbursements

Grants, subsidies and reimbursements are initially recognised at their fair value where there is reasonable assurance that the payment will be received and all attaching conditions will be complied with. Grants and subsidies received in relation to the provision of services are recognised on a percentage of completion basis. Reimbursements (eg NZ Transport Agency roading claim payments) are recognised upon entitlement, which is when conditions pertaining to eligible expenditure have been fulfilled.

Development contributions

Development contributions are recognised as income when the Council provides, or is able to provide, the service for which the contribution was charged. Until such time as the Council provides, or is able to provide, the service, development contributions are recognised as liabilities.

Fines and penalties

Revenue from fines and penalties (eg traffic and parking infringements, library overdue book fines, rates penalties) is recognised when infringement notices are issued or when the fines/penalties are otherwise imposed.

Rendering of services

Revenue from the rendering of services (eg building consent fees) is recognised by reference to the stage of completion of the transaction, based on the actual service provided as a percentage of the total services to be provided. Under this method, revenue is recognised in the accounting periods in which the services are provided.

Sale of goods

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 are recognised when the shareholders’ rights to receive payment have been established.

Investment property lease rentals

Lease rentals (net of any incentives given) are recognised on a straight line basis over the term of the lease.

Other income

Specific accounting policies for major categories of other income are outlined below:

Donated, subsidised or vested assets

Where a physical asset is acquired for nil or nominal consideration, the fair value of the asset received is recognised as income 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 income

Interest

Interest income is recognised using the effective interest rate method.

Donated services

The Council benefits from the voluntary service of many Wellingtonians in the delivery of its activities and services (e.g. beach cleaning and Otari-Wilton’s Bush guiding and planting). Due to the difficulty in determining the precise value of these donated services with sufficient reliability, donated services are not recognised in these financial statements.

Expenses

Specific accounting policies for major categories of expenditure are outlined below:

Operating activities

Grants and sponsorships

Expenditure is classified as a grant or sponsorship if it results in a transfer of resources (eg cash or physical assets) to another entity in return for compliance with certain conditions relating to the operating activities of that entity. It includes any expenditure arising from a funding arrangement with another entity that has been entered into to achieve the objectives of the Council. Grants and sponsorships are distinct from donations which are discretionary or charitable gifts. Where grants and sponsorships are discretionary until payment, the expense is recognised when the payment is made. Otherwise, the expense is recognised when the specified criteria have been fulfilled.

Finance expense

Interest

Interest expense is recognised using the effective interest rate method. All borrowing costs are expensed in the period in which they are incurred.

Depreciation and amortisation

Depreciation of property, plant and equipment and amortisation of intangible assets are charged on a straight-line basis over the estimated useful life of the associated assets.

TaxationTop

Income tax on the surplus or deficit for the year comprises current and deferred tax.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the end of the reporting period, plus any adjustment to tax payable in respect of previous periods.

Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the assets and liabilities, and the unused tax losses using tax rates enacted or substantively enacted at the end of the reporting period. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which they can be utilised.

Goods and Services Tax (GST)Top

All items in the 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 instrumentsTop

Financial instruments include financial assets (loans and receivables and financial assets at fair value through other comprehensive income), 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 income.

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 less than three months.

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 three months.

Financial assets in this category are recognised initially at fair value plus transaction costs and subsequently measured at amortised cost using the effective interest rate method. Fair value is estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date for assets of a similar maturity and credit risk. Trade and other receivables due in less than 12 months are recognised at their nominal value. A provision for impairment is recognised when there is objective evidence that the asset is impaired. As there are statutory remedies to recover unpaid rates, penalties and water meter charges, no provision has been made for impairment in respect of these receivables.

Financial assets at fair value through other comprehensive income 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 income 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 income 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 income while the ineffective part is recognised within surplus or deficit. Gains or losses recognised in other comprehensive income 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.

InventoriesTop

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 propertiesTop

Investment properties are properties which are held primarily to earn rental income or for capital growth or both. These include the Council’s ground leases, land and buildings and the Wellington Waterfront Project’s investment properties.

Investment properties exclude those properties held for strategic purposes or to provide a social service. This includes properties which generate cash inflows as the rental revenue is incidental to the purpose for holding the property. Such properties include the Council’s social housing assets, which are held within operational assets in property, plant and equipment. Borrowing costs incurred during the construction of investment property are not capitalised.

Investment properties are measured initially at cost and subsequently measured at fair value, determined annually by an independent registered valuer. Any gain or loss arising is recognised within surplus or deficit. Investment properties are not depreciated.

Non-current assets classified as held for saleTop

Non-current assets held for sale are separately classified as their carrying amount will be recovered through a sale transaction rather than through continuing use. A non-current asset is classified as held for sale where:

the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets;

a plan to sell the asset is in place and an active programme to locate a buyer has been initiated;

the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value;

the sale is expected to occur within one year or beyond one year where a delay has occurred which is caused by events beyond the Group’s control and there is sufficient evidence the Group remains committed to sell the asset; and

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 equipmentTop

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 and infrastructure land (including land under roads). Each asset type includes all items that are required for the network to function.

Vested assets are those assets where ownership and control is transferred to the Council from a third party (eg infrastructure assets constructed by developers and transferred to the Council on completion of a subdivision). Vested assets are recognised within their respective asset classes as above.

Recognition

Expenditure is capitalised as property, plant and equipment when it creates a new asset or increases the economic benefits of an existing asset. Costs that do not meet the criteria for capitalisation are expensed.

Measurement

Property, plant and equipment is recognised initially at cost, unless acquired for nil or nominal cost (eg vested assets), in which case the asset is recognised at fair value at the date of transfer. The initial cost of property, plant and equipment includes the purchase consideration (or the fair value in the case of vested assets), and those costs that are directly attributable to bringing the asset into the location and condition necessary for its intended purpose. Subsequent expenditure that extends or expands the asset’s service potential is capitalised.

Borrowing costs incurred during the construction of property, plant and equipment are not capitalised.

After initial recognition, certain classes of property, plant and equipment are revalued to fair value. Where there is no active market for an asset, fair value is determined by optimised depreciated replacement cost.

Specific measurement policies for categories of property, plant and equipment are shown below:

Operational assets

Plant and equipment and the Civic Centre complex are measured at historical cost and not revalued.

Library collections are valued at depreciated replacement cost on a three-year cycle by the Council’s library staff in accordance with guidelines outlined in Valuation Guidance for Cultural and Heritage Assets, published by the Treasury Accounting Team, November 2002.

Land and buildings are valued at fair value on a three-year cycle by independent registered valuers.

Restricted assets

Art and cultural assets (artworks, sculptures and statues) are valued at historical cost. Zoo animals are stated at estimated replacement cost. All other restricted assets (buildings, parks and reserves and the Town Belt) were valued at fair value as at 30 June 2005 by independent registered valuers. The Council has elected to use the fair value of other restricted assets at 30 June 2005 as the deemed cost of the assets. These assets are no longer revalued. Subsequent additions have been recorded at cost.

Infrastructure assets

Infrastructure assets (roading network, water, waste and drainage reticulation assets) are valued at optimised depreciated replacement cost on a three-year cycle by independent registered valuers. Infrastructure valuations are based on current quotes from actual suppliers. As such, they include ancillary costs such as breaking through seal, traffic control and rehabilitation. Between valuations, expenditure on asset improvements is capitalised at cost.

Infrastructure land (excluding land under roads) is valued at fair value on a three-year cycle.

Land under roads, which represents the corridor of land directly under and adjacent to the Council’s roading network, was valued as at 30 June 2005 at the average value of surrounding adjacent land discounted by 50% to reflect its restricted nature. The Council elected to use the fair value of land under roads at 30 June 2005 as the deemed cost of the asset. Land under roads is no longer revalued. Subsequent additions have been recorded at cost.

The 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 income and taken to the asset revaluation reserve. Where this results in a debit balance in the reserve for a class of property, plant and equipment, the balance is included in the surplus or deficit. Any subsequent increase on revaluation that offsets a previous decrease in value recognised within surplus or deficit will be recognised firstly, within surplus or deficit up to the amount previously expensed, with any remaining increase recognised within other comprehensive income 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.

Further information in respect of the most recent valuations for each class is provided in Note 25: Revaluation reserves.

Impairment

The carrying amounts of property, plant and equipment 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 income.

Disposal

Gains and losses arising from the disposal of property, plant and equipment are recognised within surplus or deficit in the period in which the transaction occurs. Any balance attributable to the disposed asset in the asset revaluation reserve is transferred to retained earnings.

Work in progress

The cost of projects within work in progress is transferred to the relevant asset class when the project is completed and then depreciated.

Depreciation

Depreciation is provided on all property, plant and equipment, with certain exceptions. The exceptions are land, restricted assets other than buildings, and assets under construction (work in progress). Depreciation is calculated on a straight-line basis, to allocate the cost or value of the asset (less any assessed residual value) over its estimated useful life. The estimated useful lives and depreciation rate ranges of the major classes of property, plant and equipment are as follows:

Land
unlimited
not depreciated

Buildings
1 to 100 years
1% to 100%

Civic Centre complex
10 to 100 years
1% to 10%

Plant and equipment
3 to 100 years
1% to 33.3%

Library collections
3 to 11 years
9.1% to 33.3%

Restricted assets (excluding buildings)
unlimited
not depreciated

Infrastructure assets:

Land (including land under roads)

unlimited
not depreciated

Roading:

Formation/earthworks

unlimited
not depreciated

Pavement

13 to 40 years
2.5% to 7.7%

Traffic islands

80 years
1.25%

Bridges and tunnels

3 to 150 years
0.67% to 33.3%

Drainage

15 to 120 years
0.83% to 6.67%

Retaining walls

30 to 100 years
1% to 3.33%

Pedestrian walkway

10 to 50 years
2% to 10%

Pedestrian furniture

8 to 25 years
4% to 12.5%

Barriers

10 to 110 years
0.91% to 10%

Lighting

10 to 50 years
2% to 10%

Cycleway network

25 to 45 years
2.2% to 4%

Parking equipment

8 to 10 years
10% to 12.5%

Passenger transport facilities

25 years
4%

Traffic infrastructure

3 to 30 years
3.33% to 33.3%

Drainage, waste and water:

Pipework

40 to 110 years
0.91% to 2.5%

Fittings

7 to 100 years
1% to 14.29%

Water pump stations

10 to 100 years
1% to 10%

Water reservoirs

40 to 100 years
1% to 2.5%

Equipment

25 years
4%

Sewer pump stations

20 to 80 years
1.25% to 5%

Tunnels

150 years
0.67%

Treatment plants

3 to 100 years
1% to 33.3%

The landfill post-closure asset is depreciated over the life of the landfill based on the capacity of the landfill.

Variation in the range of lives for infrastructural assets is due to these assets being managed and depreciated by individual component rather than as a whole asset.

Intangible assetsTop

Intangible assets predominantly comprise computer software and carbon credits. They are recorded at cost less any subsequent amortisation and impairment losses.

Computer software has a finite economic life and amortisation is charged to surplus or deficit on a straight-line basis over the estimated useful life of the asset. Typically, the estimated useful lives and depreciation rate range of these assets are as follows:

Computer software
1 to 7 years
14.29% to 100%

Carbon credits comprise either allocations of emission allowances granted by the Government related to forestry assets or units purchased in the market to cover liabilities associated with landfill operations. Carbon credits are recognised at cost at the date of allocation or purchase.

Gains and losses arising from disposal of intangible assets are recognised within surplus or deficit in the period in which the transaction occurs. Intangible assets are reviewed at least annually to determine if there is any indication of impairment. Where an intangible asset’s recoverable amount is less than its carrying amount, it will be reported at its recoverable amount and an impairment loss will be recognised. Losses resulting from impairment are reported within surplus or deficit.

Research and DevelopmentTop

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.

LeasesTop

Operating leases as lessee

Leases where the lessor retains substantially all the risks and rewards of ownership of the leased items are classified as operating leases. Payments made under operating leases are recognised within surplus or deficit on a straight-line basis over the term of the lease. Lease incentives received are recognised within surplus or deficit over the term of the lease as they form an integral part of the total lease payment.

Operating leases as lessor

The Group leases investment properties and a portion of land and buildings. Rental income 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 liabilitiesTop

A provision for employee benefit liabilities (holiday leave, long service leave and retirement gratuities) is recognised as a liability when benefits are earned but not paid.

Holiday leave

Holiday leave includes: annual leave, long service leave (qualified for), statutory time off in lieu and ordinary time off in lieu. Annual leave is calculated on an actual entitlement basis in accordance with section 21(2) of the Holidays Act 2003.

Retirement gratuities

Retirement gratuities are calculated on an actuarial basis based on the likely future entitlements accruing to employees, after taking into account years of service, years to entitlement, the likelihood that employees will reach the point of entitlement, and other contractual entitlements information.

Other contractual entitlements

Other contractual entitlements include termination benefits, which are recognised within surplus or deficit only when there is a demonstrable commitment to either terminate employment prior to normal retirement date or to provide such benefits as a result of an offer to encourage voluntary redundancy. Termination benefits settled within 12 months are reported at the amount expected to be paid, otherwise they are reported as the present value of the estimated future cash outflows.

ProvisionsTop

Provisions are recognised for future liabilities of uncertain timing or amount when there is a present obligation as a result of a past event, it is probable that expenditure will be required to settle the obligation and a reliable estimate of the obligation can be made. Provisions are measured at the expenditure expected to be required to settle the obligation. Liabilities and provisions to be settled beyond 12 months are recorded at their present value.

Landfill post-closure costs

The Council, as operator of the Southern Landfill, has a legal obligation to apply for resource consents when the landfill or landfill stages reach the end of their operating life and are to be closed. These resource consents will set out the closure requirements and the requirements for ongoing maintenance and monitoring services at the landfill site after closure. A provision for post-closure costs is recognised as a liability when the obligation for post-closure arises, which is when each stage of the landfill is commissioned and refuse begins to accumulate.

The provision is measured based on the present value of future cash flows expected to be incurred, taking into account future events including known changes to legal requirements and known improvements in technology. The provision includes all costs associated with landfill post-closure including final cover application and vegetation; incremental drainage control features; completing facilities for leachate collection and monitoring; completing facilities for water quality monitoring; completing facilities for monitoring and recovery of gas.

Amounts provided for landfill post-closure are capitalised to the landfill asset. The capitalised landfill asset is depreciated over the life of the landfill based on the capacity used.

The Council has a 21.5% joint venture interest in the Spicer Valley landfill. The Council’s provision for landfill post-closure costs includes the Council’s proportionate share of the Spicer Valley landfill provision for post-closure costs.

ACC partnership programme

The Council is an Accredited Employer under the ACC Partnership Programme. As such the Council accepts the management and financial responsibility of our employee work-related injuries. From 1 April 2009 the Council changed its agreement with ACC from Full Self Cover (FSC) to Partnership Discount Plan (PDP). Under the PDP option, the Council is responsible for managing work related injury claims for a two-year period only and transfer ongoing claims to ACC at the end of the two-year claim management period with no further liability. Under the ACC Partnership Programme the Council is effectively providing accident insurance to employees and this is accounted for as an insurance contract. The value of this liability represents the expected future payments in relation to work-related injuries occurring up to the end of the reporting period for which the Council has responsibility under the terms of the Partnership Programme.

Financial guarantee contracts

A financial guarantee contract is a contract that requires the Council to make specified payments to reimburse the contract holder for a loss it incurs because a specified debtor fails to make payment when due.

Financial guarantee contracts are initially recognised at fair value. The Council measures the fair value of a financial guarantee by determining the probability of the guarantee being called by the holder. The probability factor is then applied to the principal and the outcome discounted to present value.

Financial guarantees are subsequently measured at the higher of the Council’s best estimate of the obligation or the amount initially recognised less any amortisation.

EquityTop

Equity is the community’s interest in the Council and Group and is measured as the difference between total assets and total liabilities. 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 equity are accumulated funds and retained earnings, revaluation reserves, a hedging reserve, a fair value through other comprehensive income 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.

Contingent assets and liabilitiesTop

Contingent liabilities and contingent assets are disclosed in the Notes forming part of the Financial Statements at the point at which the contingency is evident. Contingent liabilities are disclosed if the possibility they will crystallise is not remote. Contingent assets are disclosed if it is probable the benefits will be realised.

Statement of cash flowsTop

Cash and cash equivalents for the purposes of the cash flow statement comprises bank balances, cash on hand and short term deposits with a maturity of three months or less. The 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 income 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 income. Financing activities relate to activities that change the equity and debt capital structure of the Council and Group and financing costs.

Related partiesTop

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, including the Mayor and Councillors, the Chief Executive and all members of the Executive Leadership Team.

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. The disclosures for the Group include the remuneration of the Mayor and those Councillors in their role as trustees or directors of entities within the Group. Directors’ remuneration does not include reimbursement of authorised work expenses or the provision of work-related equipment such as cellphones and laptops.

Budget figuresTop

The Annual Plan budget figures included in these financial statements are for the Council as a separate entity. The Annual Plan figures do not include budget information relating to subsidiaries or associates. These figures are those approved by the Council at the beginning of each financial year following a period of consultation with the public as part of the Annual Plan process. These figures do not include any additional expenditure subsequently approved by the Council outside the Annual Plan process. For completeness, any additional expenditure approved by the Council is explained in Notes 32 to 35. The Annual Plan figures have been prepared in accordance with GAAP and are consistent with the accounting policies adopted by the Council for the preparation of these financial statements.

Cost allocationTop

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.

ComparativesTop

To ensure consistency with the current year, certain comparative information has been reclassified where appropriate. This has occurred:

where classifications have changed between periods;

where the Council has made additional disclosure in the current year, and where a greater degree of disaggregation of prior year amounts and balances is therefore required; and

where there has been a change of accounting policy. (There has been no change in the 2012/13 year)

Note 1: Revenue from ratesTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

General rates

Base sector
68,202
67,032
68,202
67,032

Commercial, industrial and business sector
58,723
57,836
58,723
57,836

Targeted rates

Base sector
6,579
6,112
6,579
6,112

Commercial, industrial and business sector
5,163
4,411
5,163
4,411

Sewerage
33,518
31,287
33,518
31,287

Stormwater
17,397
16,986
17,397
16,986

Water
22,648
23,210
22,648
23,210

Downtown levy
13,745
10,987
13,745
10,987

Marsden Village
14
14
14
14

Tawa driveways
33
33
33
33

Total revenue from rates (excluding metered water)
226,022
217,908
226,022
217,908

Revenue from water rates by meter
11,366
12,356
11,366
12,356

Total revenue from rates for Wellington City Council
237,388
230,264
237,388
230,264

Total rates billed
284,043
273,942
284,043
273,942

less Greater Wellington Regional Council component
(46,655)
(43,678)
(46,655)
(43,678)

Total revenue from rates for Wellington City Council
237,388
230,264
237,388
230,264

The total amount of rates charged on Council-owned properties that have not been eliminated from revenue and expenditure is $10.419m (2012: $10.125m). For the Group rates of $10.455m (2012: $10.161m) have not been eliminated.

Rates remissions

Revenue from rates and levies is shown net of rates remissions. The Council’s Rates Remission and Postponement Policies provide for general rates to be partially remitted for rural open space; land used principally for games or sport and in special circumstances (where the rating policy is deemed to unfairly disadvantage an individual ratepayer). A remission of the Downtown levy targeted rate may also be granted to provide rates relief for downtown commercial property temporarily not fit for the purpose due to the property undergoing development and therefore not receiving the benefits derived by contributing to the Downtown levy targeted rate. The Council committed itself at the start of the year to certain remissions, which for the reporting period ended 30 June 2013 totalled $0.260m (2012: $0.224m).

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Total revenue from rates
237,648
230,488
237,648
230,488

less Council policy remissions

Rural open space
129
99
129
99

Land used principally for games or sport
80
78
80
78

Downtown levy
51
47
51
47

Total remissions
260
224
260
224

Total revenue from rates (net of remissions)
237,388
230,264
237,388
230,264

Non-rateable land

Under the Local Government (Rating) Act 2002 certain properties are non-rateable. This includes schools, churches, public gardens and certain land vested in the Crown. This land is non-rateable in respect of general rates but, where applicable, is rateable in respect of sewerage and water. Non-rateable land does not constitute a remission under the Council’s Rates Remission and Postponement Policies.

Note 2: Revenue from operating activitiesTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Grants, subsidies and reimbursements

Grants, subsidies and reimbursements – operating
7,192
7,452
12,237
14,112

Grants, subsidies and reimbursements – capital
39,603
62,071
38,839
62,308

Total grants, subsidies and reimbursements
46,795
69,523
51,076
76,420

Development contributions
4,356
3,434
4,356
3,434

Other operating activities

Fines and penalties
10,132
11,140
10,132
11,140

Rendering of services
94,888
91,055
104,687
97,577

Sale of goods
6,036
6,334
7,789
10,801

Total other operating activities
111,056
108,529
122,608
119,518

Total revenue from operating activities
162,207
181,486
178,040
199,372

For the Council, the principal grants and reimbursements are from:

The New Zealand Transport Agency (NZTA), which reimburses part of the Council’s costs for maintaining the local roading infrastructure. The capital reimbursements from NZTA of $10.641m (2012: $12.377m) and operating reimbursements of $4.471m (2012: $4.527m) are for costs already incurred and there are no unfulfilled conditions or other contingencies relating to the reimbursements.

The Crown, for the upgrade of the Council's social housing stock. The capital grant recognised in the current year of $28.088m (2012: $48.050m) is part of a 10 year work programme that commenced in 2008 and the revenue is recognised in accordance with that agreed work programme. There are no unfulfilled conditions or other contingencies relating to this grant.

For the Group, the additional principal subsidy was $3.814m (2012: $5.632m) from Greater Wellington Regional Council to Wellington Cable Car Limited for the maintenance of the overhead wire trolley system.

Rendering of services includes revenue from all Council services and is broken down as follows:

Rendering of services
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Animal control
1,128
1,043
1,128
1,043

Berths and boat sheds
578
585
578
585

Building consents and licensing services
11,591
10,500
11,591
10,500

Community programmes and facilities hire
2,403
1,929
2,403
1,929

Community housing
17,992
16,717
17,992
16,717

Convention and conference centre
14,441
13,663
14,441
13,663

Encroachments and reserve land contributions
1,702
1,517
1,702
1,517

Green spaces
1,967
1,987
1,967
1,987

Landfill operations and recycling
7,673
8,084
7,673
8,084

Lease revenue from property, plant and equipment
4,744
4,572
4,744
4,572

Libraries – hireage
1,095
1,047
1,095
1,047

Parking fees and permits
17,042
16,699
17,042
16,699

Rendering of services recognised in subsidiaries
-
-
9,799
6,522

Roading infrastructure projects
1,261
1,628
1,261
1,628

Services to Greater Wellington Regional Council
751
727
751
727

Swimming pools
6,382
6,135
6,382
6,135

Trade waste
565
529
565
529

Other
3,573
3,693
3,573
3,693

Total rendering of services
94,888
91,055
104,687
97,577

Note 3: Revenue from investmentsTop

Council
Group

NOTE
2013
$000
2012
$000
2013
$000
2012
$000

Dividend from investment in associates

10,828
22,426
-
-

Dividend from investment in subsidiary

94
10
-
-

Investment property lease rentals
17
12,668
12,493
12,668
12,493

Total revenue from investments

23,590
34,929
12,668
12,493

Note 4: Other incomeTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Gain on disposal of property, plant and equipment
360
6,701
361
6,701

Release of provisions
2,403
1,276
2,415
1,293

Petrol tax
1,102
1,127
1,102
1,127

Restricted funds
322
184
322
184

Vested assets
10,519
7,163
10,519
7,163

Total other income
14,706
16,451
14,719
16,468

Restricted funds are received for specific purposes and are generally held for future use within special reserves or bequest and trust funds. For further information refer to Note 28: Restricted funds.

Vested assets are principally infrastructural assets such as roading, drainage, waste and water assets that have been constructed by developers. As part of the consents process, ownership of these assets is transferred to the Council, and on completion they become part of the city’s network.

The values of principal vested assets received were: roading ($6.322m) and drainage, waste and water ($3.640m).

Note 5: Finance income and expenseTop

Council
Group

NOTE
2013
$000
2012
$000
2013
$000
2012
$000

Finance income

Amortisation of loans to related parties
13
465
504
465
504

Cash flow hedge movements reclassified from hedging reserve
26
163
268
163
268

Fair value hedge adjustments to borrowings

648
217
648
217

Interest on deposits, loans and receivables

1,641
951
1,999
1,242

Movements on derivatives at fair value through surplus or deficit

222
262
222
262

Total finance income

3,139
2,202
3,497
2,493

Less

Finance expense

Fair value hedge movements

648
217
648
217

Interest on borrowings

21,269
20,015
21,269
20,107

Interest on finance leases

62
117
64
117

Re-discounting of interest on provisions

1,171
1,229
1,171
1,229

Total finance expense

23,150
21,578
23,152
21,670

Net finance cost

20,011
19,376
19,655
19,177

Movements arising from the remeasurement of the Group's fair value hedges are offset by a fair value adjustment to borrowings so there is no impact on the net surplus for the year.

Movements on derivatives at fair value through surplus or deficit represents the fair value movements on interest rate swaps that do not meet the criteria for hedge accounting. Movements in the Group's other derivatives that meet the criteria for hedge accounting are taken to the cash flow hedge reserve and have no impact on the net surplus for the year.

Re-discounting of interest on provisions is the Council’s funding cost for non-current provisions (where the cash flows will not occur until a future date). For further information refer to Note 22: Employee benefit liabilities and provisions, and Note 23: Provision for other liabilities.

Note 6: Expenditure on operating activitiesTop

Council
Group

NOTE
2013
$000
2012
$000
2013
$000
2012
$000

Auditor's remuneration:

Audit services – Audit New Zealand – Financial Statements

301
314
390
359

Audit services – Audit New Zealand – Long-term Plan

-
135
-
135

Audit services – Audit New Zealand – other

7
7
7
7

Audit services – Other Auditors

-
-
50
29

Impairments

Bad debts written off not previously provided for

-
78
-
78

Increase in provision for impairment of trade and other receivables
12
803
222
803
222

Impairment loss from property, plant and equipment
18
-
132
-
132

Governance and employment

Councillor remuneration as directors/trustees
43
1,317
1,314
1,407
1,404

Directors/trustees of subsidiaries – remuneration

-
-
467
453

Other elected members' remuneration (Community Boards)
43
105
102
105
102

Employee benefits expense:

- remuneration

73,666
76,698
91,320
94,052

- superannuation contributions (including KiwiSaver)

1,380
1,246
1,644
1,457

- termination benefits (including severances)

1,781
2,410
1,862
2,502

Other personnel costs

2,894
3,492
3,339
3,944

Insurance

Insurance premiums

11,482
9,084
11,910
9,423

Self insurance costs – net
29
451
915
451
915

General

Advertising, printing and publications

2,146
2,976
8,189
8,595

Consultants and legal fees

5,961
5,647
6,157
5,796

Contractors

2,701
3,278
3,815
4,593

Direct costs

105,690
98,727
113,917
108,634

Grants – general

13,182
11,025
13,082
10,970

Grants to subsidiaries
42
18,274
17,824
-
-

Grants to associates
42
1,355
180
1,355
180

Information and communication technology

6,012
5,482
6,748
6,090

Loss on disposal of property, plant and equipment

1,357
210
1,393
210

Loss on disposal of intangibles

130
20
130
20

Operating lease – minimum lease payments

1,174
1,196
1,706
1,692

Reassessment of provisions
23
15,945
9,903
15,945
9,903

Utility costs

17,861
17,151
18,355
17,655

Other general costs

17,955
18,843
14,193
15,128

Total expenditure on operating activities

303,930
288,611
318,740
304,680

Auditor’s remuneration

During the period Audit New Zealand provided other services to the Council, namely assurance services relating to the Clifton Terrace car park managed by the Council on behalf of the NZTA.

General

Direct costs are costs directly attributable to the provision of Council services, including contracts, maintenance, management fees, materials and services.

Grants – general include $2.250m towards the funding of Te Papa.

Operating lease minimum lease payments are for non-cancellable agreements for the use of assets such as buildings and specialised computer equipment.

Utility costs are those relating to the use of electricity, gas, and water. It also includes the payment of rates on Council-owned properties.

Note 7: Depreciation and amortisationTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Depreciation

Buildings
17,780
16,442
17,780
16,442

Civic Centre complex
2,866
2,807
2,866
2,807

Restricted buildings
1,240
1,168
1,240
1,168

Drainage, waste and water infrastructure
33,176
33,222
33,176
33,222

Landfill post closure
250
213
250
213

Library collections
2,307
2,070
2,307
2,070

Plant and equipment
10,243
10,779
10,994
11,529

Roading infrastructure
19,418
18,695
19,418
18,695

Total depreciation
87,280
85,396
88,031
86,146

Amortisation

Computer software
3,868
3,141
3,946
3,210

Total amortisation
3,868
3,141
3,946
3,210

Total depreciation and amortisation
91,148
88,537
91,977
89,356

Depreciation (amortisation) is an expense charged each year to reflect the estimated cost of using our assets over their lives. Amortisation relates to intangible assets such as software (as distinct from physical assets, which are covered by the term depreciation).

Note 8: Income tax expenseTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Current tax expense

Current year
-
-
47
107

Prior period adjustment
-
-
-
-

Total current tax expense
-
-
47
107

Deferred tax expense

Origination and reversal of temporary differences
(270)
(190)
-
103

Change in unrecognised temporary differences
-
-
44
(46)

Recognition of previously unrecognised tax losses
270
190
-
(57)

Total deferred tax expense
-
-
44
-

Reconciliation of tax on the surplus and tax expense
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Surplus for the period before taxation
28,187
62,186
30,533
50,069

Prima facie income tax based on domestic tax rate – 28%
7,892
17,412
8,549
14,019

Effect of non-deductible expenses and tax exempt income
(8,169)
(17,539)
(8,013)
(17,539)

Effect of tax losses utilised
270
190
-
-

Current year's loss for which no deferred tax asset was recognised
7
(25)
7
(30)

Recognition of prior year loss
-
-
(51)
-

Change in unrecognised temporary differences
-
-
103
(16)

Prior period adjustment
-
-
22
(57)

Share of income tax of equity accounted associates
-
(38)
(526)
3,730

Tax Expense
-
-
91
107

Imputation credits
Group

2013
$000
2012
$000

Imputation credits available in subsequent periods
101
70

Note 9: Deferred tax assets and liabilitiesTop

Unrecognised temporary differences and tax losses

Deferred tax assets have not been recognised in respect of the following items:

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Deductible temporary differences
-
-
463
363

Tax losses
2,003
2,911
2,005
2,924

Total
2,003
2,911
2,468
3,287

Under current income tax legislation, the tax losses and deductible temporary differences referred to above do not expire.

The unrecognised deferred tax asset in respect of the above items for the Council is $0.561m (2012: $0.815m) and for the Group $0.691m (2012: $0.819m).

Deferred tax assets have not been recognised in respect of these items as it is not probable that future taxable profits will be available against which the benefit of the losses can be utilised.

In 2013 $0.964m (2012: $0.679m) previously unrecognised tax losses, with a tax effect of $0.270m (2012: $0.190m) were recognised by the Group by way of loss transfer arrangement.

As at 30 June 2013, the Group had a deferred tax liability of $1.427m (2012: $1.196m).

Note 10: Cash and cash equivalentsTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Cash at bank
7,284
2,574
10,105
5,266

Cash on hand
105
48
115
59

Short term bank deposits
37,000
20,000
40,298
21,587

Total cash and cash equivalents
44,389
22,622
50,518
26,912

Bank balances that are interest bearing earn interest based on current floating bank deposit rates.

Short term deposits are made with a registered bank for varying periods of up to three months depending on the immediate cash requirements and short term borrowings of the Group, and earn interest at the applicable short term deposit rates.

The Council holds short term deposits as part of its overall liquidity risk management programme. This enables the Council to maintain its regular commercial paper programme and to pre-fund upcoming debt maturities. The combination of the commercial paper programme and holding short term deposits reduces the Council’s cost of funds.

Note 11: Derivative financial instrumentsTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Current assets

Interest rate swaps – fair value hedges
409
108
409
108

Total current assets
409
108
409
108

Non-current assets

Interest rate swaps – fair value hedges
-
949
-
949

Interest rate swaps – cash flow hedges
3,280
-
3,280
-

Total non-current assets
3,280
949
3,280
949

Total derivative financial instrument assets
3,689
1,057
3,689
1,057

Current liabilities

Interest rate swaps – cash flow hedges
404
247
404
247

Interest rate swaps – non-hedged
-
222
-
222

Total current liabilities
404
469
404
469

Non-current liabilities

Interest rate swaps – cash flow hedges
12,831
23,812
12,831
23,812

Total non-current liabilities
12,831
23,812
12,831
23,812

Total derivative financial instrument liabilities
13,235
24,281
13,235
24,281

Derivative financial instruments are used by the Group in the normal course of business to hedge exposure to cash flow and fair value interest rate risk. The amounts shown above represent the fair values of these derivative financial instruments. Although these are managed as a portfolio, the Group has no rights to offset assets and liabilities and must present these figures separately.

Cash flow hedges are used to fix interest rates on floating rate debt (floating rate notes or commercial paper) or bank borrowings. Fair value hedges are used to convert interest rates on some fixed rate debt (bonds) to floating rates.

For further information on the Council’s interest rate swaps please refer to Note 31: Financial instruments.

Note 12: Trade and other receivablesTop

Council
Group

NOTE
2013
$000
2012
$000
2013
$000
2012
$000

Trade receivables – debtors

10,959
8,402
13,048
11,078

Provision for impairment of trade receivables – debtors

(241)
(318)
(532)
(591)

Net trade receivables – debtors

10,718
8,084
12,516
10,487

Trade receivables – fines

10,703
10,758
10,703
10,758

Provision for impairment of trade receivables – fines

(6,623)
(6,329)
(6,623)
(6,329)

Net trade receivables – fines

4,080
4,429
4,080
4,429

Trade receivables from related parties

- Subsidiaries
42
671
1,089
-
-

- Associates
42
13
25
13
25

Total trade receivables from related parties

684
1,114
13
25

Total net trade receivables

15,482
13,627
16,609
14,941

Accrued income

6,099
13,704
6,602
14,069

GST receivable

4,406
3,568
4,722
3,572

Rates receivable

10,417
9,605
10,417
9,605

Sundry receivables

13,152
13,829
13,697
14,029

Total trade and other receivables

49,556
54,333
52,047
56,216

Represented by:

Current

49,556
41,658
52,047
43,541

Non-current

-
12,675
-
12,675

Total trade and other receivables

49,556
54,333
52,047
56,216

Current trade receivables, rates receivables and sundry receivables are non-interest bearing and receipt is generally on 30-day terms, therefore the carrying value of trade and other receivables approximates their fair value.

The movement in the provision for impairment of trade receivables is analysed as follows:

Provision for impairment of total trade receivables
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Opening balance
6,647
7,301
6,920
7,574

New provisions made
803
222
821
222

Release of unused provision
(367)
(295)
(367)
(295)

Amount of provision utilised
(219)
(581)
(219)
(581)

Provision for impairment of total trade receivables – closing balance
6,864
6,647
7,155
6,920

The ageing profile of trade and other receivables at the reporting date is as follows:

Council
Receivables
2013
Receivables
2012

Gross
$000
Impaired
$000
Net
$000
Gross
$000
Impaired
$000
Net
$000

Trade and other receivables

Not past due
31,020
-
31,020
38,832
-
38,832

Past due 0 – 3 months
7,802
(113)
7,689
6,325
(125)
6,200

Past due 3 – 6 months
3,218
(111)
3,107
2,199
(114)
2,085

Past due more than 6 months
14,380
(6,640)
7,740
13,624
(6,408)
7,216

Total trade and other receivables
56,420
(6,864)
49,556
60,980
(6,647)
54,333

Group
Receivables
2013
Receivables
2012

Gross
$000
Impaired
$000
Net
$000
Gross
$000
Impaired
$000
Net
$000

Trade and other receivables

Not past due
32,575
-
32,575
40,512
-
40,512

Past due 0 – 3 months
8,126
(113)
8,013
6,405
(125)
6,280

Past due 3 – 6 months
3,695
(111)
3,584
2,227
(114)
2,113

Past due more than 6 months
14,806
(6,931)
7,875
13,992
(6,681)
7,311

Total trade and other receivables
59,202
(7,155)
52,047
63,136
(6,920)
56,216

The receivables past due for more than six months primarily relates to fines. Due to their nature, the collection pattern for fines is longer than that for trade debtors.

Note 13: Other financial assetsTop

Council
Group

NOTE
2013
$000
2012
$000
2013
$000
2012
$000

Financial assets at fair value through other comprehensive income

Equity investments:

- Civic Assurance

620
681
620
681

- NZ Local Government Funding Agency (LGFA)

1,883
2,000
1,883
2,000

Loans and deposits

Bank deposits – term

-
-
400
1,520

LGFA – borrower notes

480
240
480
240

Loans to related parties – associates
42
1,407
1,248
1,407
1,248

Loans to related parties – other organisations

3,979
3,673
3,979
3,673

Total other financial assets

8,369
7,842
8,769
9,362

Civic Assurance is the trading name of New Zealand Local Government Insurance Corporation Limited, which provides insurance products and other financial services principally to local authorities. The Council holds a 4.78% (2012: 4.78%) shareholding in this entity with no present intention to sell.

The New Zealand Local Government Funding Agency Limited (LGFA), which commenced in December 2011 is an alternative debt provider majority owned by and operated for local authorities. The Council holds an 8% shareholding of the paid-up capital and as a shareholder will benefit from a return on its investment and as a borrower from lower borrowing costs. The small reduction in value relates to the sell-down of shares to enable other councils to become shareholders. The LGFA has a AA+ (domestic long term) credit rating from Standard and Poors.

The loans to related parties are concessionary in nature, since the loans have been granted on interest-free terms.

The movements in the loans are as follows:

Council
Group

NOTE
2013
$000
2012
$000
2013
$000
2012
$000

Loans to related parties – associates

Wellington Regional Stadium Trust

(nominal value $15,394,893)

Opening balance

1,248
1,107
1,248
1,107

Amortisation of fair value adjustment

159
141
159
141

Closing balance at fair value
42
1,407
1,248
1,407
1,248

Loans to related parties – other organisations

Karori Wildlife Sanctuary Trust

(nominal value $10,346,689)

Opening balance

3,673
4,312
3,673
4,312

Amortisation of fair value adjustment

306
363
306
363

Additional fair value movement

-
(1,002)
-
(1,002)

Closing balance at fair value

3,979
3,673
3,979
3,673

Total loans to related parties

5,386
4,921
5,386
4,921

The fair value movement on loans reflects the timing of their expected repayments and the interest free nature of the loan. Over the remaining life of the loans their fair value will be amortised back up to their full nominal value.

The amortisation rate applicable to the Wellington Regional Stadium Trust is 12.710% and the rates applicable to the Karori Wildlife Sanctuary Trust range from 6.875% to 12.710%.

Further information on the related parties is disclosed in Note 42: Related party disclosures.

Note 14: InventoriesTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Consumables
551
432
613
1,355

Inventories held for resale
193
368
1,157
596

Inventories held for distribution
131
66
131
66

Total inventories
875
866
1,901
2,017

Consumables are materials or supplies which will be consumed in conjunction with the delivery of services. Consumables within the Council predominately comprise nursery plants, printing products and drainage and waste consumables. Consumables within the Group are mainly Wellington Cable Car Limited inventories of spare parts.

Inventories held for resale within the Council mainly comprise inventories at the Botanic Gardens and the Council’s swimming pools. The Group includes inventories at Wellington Museums Trust and Wellington Zoo.

Inventories held for distribution primarily relate to the holding of wheelie bins, green bins and recycling bags for distribution at no or nominal cost.

Note 15: Non-current assets classified as held for saleTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Opening balance
949
8,099
949
8,099

Disposals
(899)
(7,916)
(899)
(7,916)

Transfers from property, plant and equipment
222
899
222
899

Transfers to property, plant and equipment
-
(133)
-
(133)

Non-current assets classified as held for sale – closing balance
272
949
272
949

Non-current assets held for sale are valued at the lower of the carrying amount and fair value less costs to sell at the time of reclassification.

Note 16: IntangiblesTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Computer software

Cost – opening balance
38,981
34,128
39,662
34,865

Accumulated amortisation
(28,936)
(25,943)
(29,509)
(26,525)

Computer software opening balance
10,045
8,185
10,153
8,340

Acquired by direct purchase
5,023
5,021
5,029
5,043

Net disposals
(130)
(20)
(130)
(20)

Amortisation
(3,868)
(3,141)
(3,946)
(3,210)

Transfer from property, plant and equipment
-
-
3
-

Total computer software – closing balance
11,070
10,045
11,109
10,153

Cost
43,011
38,981
43,701
39,662

Accumulated amortisation
(31,941)
(28,936)
(32,592)
(29,509)

Total computer software – closing balance
11,070
10,045
11,109
10,153

Work in progress

Computer software
2,442
2,124
2,442
2,124

Total work in progress
2,442
2,124
2,442
2,124

Carbon credits

Cost – Opening Balance
-
-
-
-

Additions
37
-
37
-

Total carbon credits – closing balance
37
-
37
-

Total intangibles
13,549
12,169
13,588
12,277

Disposals and transfers are reported net of accumulated amortisation.

Carbon credits

As part of the Emissions Trading Scheme the Council received carbon credits from Central Government in recognition of the carbon absorbed by a portion of the Council’s green belt. The Council received 149,979 credits for the 2013 calendar year (2012: 1,196). The Council has also purchased 80,000 credits in the market to cover the expected liabilities associated with landfill operations. At 30 June 2013 the total number of credits held is 234,686 (2012: 4,707).

At 30 June 2013 the liability relating to these credits is $0.080m (2012: nil).

More information on carbon credits can be found in the Statements of Service Performance under activity 2.2: Waste reduction and energy conservation.

Note 17: Investment propertiesTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Opening balance
200,474
203,742
200,474
203,742

Additions by acquisition
-
21
-
21

Additions by subsequent expenditure
92
129
92
129

Fair value revaluation movements taken to surplus/(deficit)
5,385
(3,418)
5,385
(3,418)

Investment properties – closing balance
205,951
200,474
205,951
200,474

Wellington City Council’s investment properties were valued as at 30 June 2013 by William Bunt (FNZIV, FPINZ), registered valuer and Director of Valuation Services for CBRE Limited. Wellington Waterfront Project’s investment properties were valued as at 30 June 2013 by Paul Butchers (BBS, FNZIV, FPINZ), Director of Bayleys Valuation Limited.

The Council’s total investment properties comprise ground leases of $154.902m (2012: $154.527m) and land and buildings of $51.049m (2012: $45.947m) held for investment purposes.

Ground leases are parcels of land owned by the Council in the central city or on the waterfront that are leased to other parties who own the buildings situated on the land. The leases are generally based on 21-year perpetually renewable terms. As these parcels of land are held for investment purposes the rentals are charged on a commercial market basis.

The basis of valuation varies depending on the nature of the lease. For sites that are subject to a terminating lease the approach is to assess the value of the rental income over the remaining term of the lease and add the residual value of the land at lease expiry. For sites subject to perpetually renewable leases values have been assessed utilising a discounted cash flow and arriving at a net present value of all future anticipated gross rental payments.

Revenues and expenses
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Revenue from investment properties
12,668
12,493
12,668
12,493

Direct operating expenses of investment properties

– from investment properties that generated income
339
1,058
339
1,058

Contractual obligations for capital expenditure
35
6,947
35
6,947

Contractual obligations for operating expenditure
48
62
48
62

The direct operating expenses relating to investment properties form part of the direct expenses in Note 6: Expenditure on operating activities.

Fair value of investment properties valued by independent registered valuers
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

William Bunt – CBRE Limited
156,662
156,577
156,662
156,577

Paul Butchers – Bayleys Valuation Limited
49,289
43,897
49,289
43,897

Total fair value of investment properties valued by independent registered valuers
205,951
200,474
205,951
200,474

Note 18: Property, plant and equipmentTop

The movements in the property, plant and equipment assets are summarised as follows:  

Summary
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Property, plant and equipment – Opening balance
6,501,686
6,362,494
6,514,367
6,393,223

Additions
149,795
226,238
149,956
223,057

Disposals
(6,823)
(1,936)
(6,860)
(16,028)

Depreciation expense
(87,280)
(85,396)
(88,031)
(86,146)

Impairment losses
-
(132)
-
(132)

Revaluation movement
-
48,612
-
48,612

Transfer from non-current assets held for sale
-
133
-
133

Transfer to non-current assets held for sale
(222)
(899)
(222)
(899)

Transfer to intangibles
-
-
(3)
-

Movement in work in progress
(10,864)
(47,428)
(10,274)
(47,453)

Property, plant and equipment – Closing balance
6,546,292
6,501,686
6,558,933
6,514,367

The movements according to the individual classes of assets are as follows:

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

OPERATIONAL ASSETS

Land

Land – at cost – opening balance
-
3,081
-
6,172

Land – at valuation – opening balance
206,036
198,283
206,036
198,283

Total land – opening balance
206,036
201,364
206,036
204,455

Additions
-
4,222
-
4,222

Disposals
(2,205)
(1,356)
(2,205)
(4,447)

Revaluation movement
-
2,536
-
2,536

Transfer between asset classes
(500)
145
(500)
145

Transfer to non-current assets held for sale
-
(875)
-
(875)

Total land – closing balance
203,331
206,036
203,331
206,036

Land – at cost – closing balance
-
-
-
-

Land – at valuation – closing balance
203,331
206,036
203,331
206,036

Total land – closing balance
203,331
206,036
203,331
206,036

Buildings

Buildings – at cost – opening balance
-
41,057
-
54,112

Buildings – at valuation – opening balance
547,704
369,665
547,704
369,665

Total cost/valuation
547,704
410,722
547,704
423,777

Accumulated depreciation
-
(26,115)
-
(28,169)

Total buildings – opening balance
547,704
384,607
547,704
395,608

Additions
60,906
130,694
60,906
130,694

Depreciation expense
(17,780)
(16,442)
(17,780)
(16,442)

Disposals
(485)
(56)
(485)
(11,057)

Revaluation movement
-
46,076
-
46,076

Transfer between asset classes
30
2,825
30
2,825

Total buildings – closing balance
590,375
547,704
590,375
547,704

Buildings – at cost – closing balance
60,906
-
60,906
-

Buildings – at valuation – closing balance
547,282
547,704
547,282
547,704

Total cost/valuation
608,188
547,704
608,188
547,704

Accumulated depreciation
(17,813)
-
(17,813)
-

Total buildings – closing balance
590,375
547,704
590,375
547,704

Landfill post closure costs26

Landfill post closure – at cost – opening balance
3,930
3,635
3,930
3,635

Accumulated depreciation
(1,850)
(1,701)
(1,850)
(1,701)

Total landfill post closure costs – opening balance
2,080
1,934
2,080
1,934

Depreciation expense
(250)
(213)
(250)
(213)

Transfer between asset classes
-
(700)
-
(700)

Movement in post closure costs
(147)
1,059
(147)
1,059

Total landfill post closure costs – closing balance
1,683
2,080
1,683
2,080

Landfill post closure – at cost – closing balance
3,783
3,930
3,783
3,930

Accumulated depreciation
(2,100)
(1,850)
(2,100)
(1,850)

Total landfill post closure costs – closing balance
1,683
2,080
1,683
2,080

Civic Centre complex

Civic Centre complex – at cost – opening balance
172,949
170,774
172,949
170,774

Accumulated depreciation
(53,065)
(50,259)
(53,065)
(50,259)

Total Civic Centre complex – opening balance
119,884
120,515
119,884
120,515

Additions
745
2,170
745
2,170

Transfer between asset classes
(3)
6
(3)
6

Depreciation expense
(2,866)
(2,807)
(2,866)
(2,807)

Total Civic Centre complex – closing balance
117,760
119,884
117,760
119,884

Civic Centre complex – at cost – closing balance
173,691
172,949
173,691
172,949

Accumulated depreciation
(55,931)
(53,065)
(55,931)
(53,065)

Total Civic Centre complex – closing balance
117,760
119,884
117,760
119,884

Plant and equipment

Plant and equipment – at cost – opening balance
156,363
150,472
169,045
167,405

Accumulated depreciation
(74,512)
(68,257)
(79,448)
(73,514)

Total plant and equipment – opening balance
81,851
82,215
89,597
93,891

Additions
11,304
13,057
11,464
9,877

Depreciation expense
(10,243)
(10,779)
(10,994)
(11,529)

Disposals
(3,548)
(520)
(3,585)
(520)

Transfer between asset classes
(27)
(2,122)
(27)
(2,122)

Transfer to intangibles
-
-
(3)
-

Total plant and equipment – closing balance
79,337
81,851
86,452
89,597

Plant and equipment – at cost
157,065
156,363
169,867
169,045

Accumulated depreciation
(77,728)
(74,512)
(83,415)
(79,448)

Total plant and equipment – closing balance
79,337
81,851
86,452
89,597

Disposals and transfers are reported net of accumulated depreciation.

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Library collections

Library collections – at cost – opening balance
1,977
-
1,977
-

Library collections – at valuation – opening balance
15,715
15,715
15,715
15,715

Total cost/valuation
17,692
15,715
17,692
15,715

Accumulated depreciation
(2,070)
-
(2,070)
-

Total library collections – opening balance
15,622
15,715
15,622
15,715

Additions
1,995
1,977
1,995
1,977

Depreciation expense
(2,307)
(2,070)
(2,307)
(2,070)

Revaluation movement
-
-
-
-

Total library collections – closing balance
15,310
15,622
15,310
15,622

Library collections – at cost – closing balance
3,972
1,977
3,972
1,977

Library collections – at valuation – closing balance
15,715
15,715
15,715
15,715

Total cost/valuation
19,687
17,692
19,687
17,692

Accumulated depreciation
(4,377)
(2,070)
(4,377)
(2,070)

Total library collections – closing balance
15,310
15,622
15,310
15,622

TOTAL OPERATIONAL ASSETS
1,007,796
973,177
1,014,911
980,923

INFRASTRUCTURE ASSETS

Drainage, waste and water

Drainage, waste and water – at cost – opening balance
46,755
-
46,755
-

Drainage, waste and water – at valuation – opening balance
1,350,574
1,365,199
1,350,574
1,365,199

Total cost/valuation
1,397,329
1,365,199
1,397,329
1,365,199

Accumulated depreciation
(33,222)
-
(33,222)
-

Total drainage, water and waste – opening balance
1,364,107
1,365,199
1,364,107
1,365,199

Additions
30,130
32,130
30,130
32,130

Depreciation expense
(33,176)
(33,222)
(33,176)
(33,222)

Total drainage, water and waste – closing balance
1,361,061
1,364,107
1,361,061
1,364,107

Drainage, waste and water – at cost – closing balance
76,885
46,755
76,885
46,755

Drainage, waste and water – at valuation – closing balance
1,350,574
1,350,574
1,350,574
1,350,574

Total cost/valuation
1,427,459
1,397,329
1,427,459
1,397,329

Accumulated depreciation
(66,398)
(33,222)
(66,398)
(33,222)

Total drainage, water and waste – closing balance
1,361,061
1,364,107
1,361,061
1,364,107

Roading

Roading – at cost – opening balance
38,614
-
38,614
-

Roading – at valuation – opening balance
784,374
784,374
786,974
786,974

Total cost/valuation
822,988
784,374
825,588
786,974

Accumulated depreciation
(18,695)
-
(18,695)
-

Total roading – opening balance
804,293
784,374
806,893
786,974

Additions
38,613
38,614
38,613
38,614

Depreciation expense
(19,418)
(18,695)
(19,418)
(18,695)

Total roading – closing balance
823,488
804,293
826,088
806,893

Roading – at cost – closing balance
77,227
38,614
77,227
38,614

Roading – at valuation – closing balance
784,374
784,374
786,974
786,974

Total cost/valuation
861,601
822,988
864,201
825,588

Accumulated depreciation
(38,113)
(18,695)
(38,113)
(18,695)

Total roading – closing balance
823,488
804,293
826,088
806,893

Infrastructure land

Infrastructure land – at cost – opening balance
-
-
-
-

Infrastructure land – at valuation – opening balance
36,447
36,447
36,447
36,447

Total infrastructure land – opening balance
36,447
36,447
36,447
36,447

Disposal
(370)
-
(370)
-

Total infrastructure land – closing balance
36,077
36,447
36,077
36,447

Infrastructure land – at cost – closing balance
-
-
-
-

Infrastructure land – at valuation – closing balance
36,077
36,447
36,077
36,447

Total infrastructure land – closing balance
36,077
36,447
36,077
36,447

Land under roads

Land under roads – at cost – opening balance
2,944,770
2,944,639
2,944,770
2,944,639

Additions
3,117
158
3,117
158

Disposals
(88)
(4)
(88)
(4)

Impairment
-
(132)
-
(132)

Transfer between asset classes
360
-
360
-

Transfer from non-current assets held for sale
-
133
-
133

Transfer to non-current assets held for sale
(222)
(24)
(222)
(24)

Land under roads – closing balance
2,947,937
2,944,770
2,947,937
2,944,770

TOTAL INFRASTRUCTURE ASSETS
5,168,563
5,149,617
5,171,163
5,152,217

RESTRICTED ASSETS

Art and cultural assets

Art and cultural assets – at cost – opening balance
8,731
8,382
11,066
10,718

Additions
548
421
549
420

Transfer between asset classes
-
(72)
-
(72)

Art and cultural assets – closing balance
9,279
8,731
11,615
11,066

Restricted buildings

Restricted buildings – at cost – opening balance
33,175
32,820
33,175
32,820

Accumulated depreciation
(5,766)
(4,615)
(5,766)
(4,615)

Total restricted buildings – opening balance
27,409
28,205
27,409
28,205

Additions
1,981
454
1,981
454

Depreciation expense
(1,240)
(1,168)
(1,240)
(1,168)

Disposals
(111)
-
(111)
-

Transfer between asset classes
-
(82)
-
(82)

Restricted buildings – closing balance
28,039
27,409
28,039
27,409

Restricted buildings – at cost – closing balance
34,832
33,175
34,832
33,175

Accumulated depreciation
(6,793)
(5,766)
(6,793)
(5,766)

Total restricted buildings – closing balance
28,039
27,409
28,039
27,409

Parks and reserves

Parks and reserves – at cost – opening balance
204,516
203,234
204,516
203,234

Additions
603
1,282
603
1,282

Disposals
(16)
–
(16)
–

Transfer between asset classes
3,699
-
3,699
-

Parks and reserves – closing balance
208,802
204,516
208,802
204,516

Town Belt – at cost
88,103
88,103
88,103
88,103

Transfer between asset classes
(3,559)
-
(3,559)
-

Total restricted buildings – closing balance
84,544
88,103
84,544
88,103

Zoo animals – at cost
500
500
500
500

TOTAL RESTRICTED ASSETS
331,164
329,259
333,500
331,594

WORK IN PROGRESS

- Land
53
460
53
460

- Buildings
13,881
33,873
13,881
33,873

- Civic Centre complex
5,835
1,226
5,835
1,226

- Plant and equipment
13,354
9,416
13,944
9,416

- Drainage, waste and water
457
381
457
381

- Roading
4,840
1,854
4,840
1,854

- Art and cultural
173
326
173
326

- Restricted buildings
176
2,097
176
2,097

TOTAL WORK IN PROGRESS
38,769
49,633
39,359
49,633

TOTAL PROPERTY, PLANT AND EQUIPMENT
6,546,292
6,501,686
6,558,933
6,514,367

Disposals and transfers are reported net of accumulated depreciation.

Revaluation of property, plant and equipment

The Council’s operational land and buildings were valued as at 30 June 2012, and infrastructural land as at 30 June 2011 by William Bunt (FNZIV, FPINZI), registered valuer and Director of Valuation Services for CBRE Limited.

Library collections were valued as at 30 June 2011 by the Council’s library staff. The revaluation was carried out in accordance with guidelines outlined in Valuation Guidance for Cultural and Heritage Assets published by the Treasury Accounting Team, November 2002. An independent peer review was conducted by Michaela O’Donovan, Manager Service Design and Implementation, National Library of New Zealand.

Drainage, waste and water infrastructure and the roading network were valued as at 30 June 2011 by John Vessey (MIPENZ), Partner of Opus International Consultants Limited.

In the years which an asset class is not revalued, the Group assesses whether there has been any material change in the value of that asset class. The movement in asset values between 30 June 2012 and 30 June 2013 for the Roads, Water and Library asset classes were assessed using appropriate indices. The increase in asset value of 1.6% was not considered material by management and accordingly the assets were not revalued at 30 June 2013.

Further information on revaluation reserves and movements is contained in Note 25: Revaluation reserves.

Finance leases

The net carrying amount of plant and equipment assets held the Council under finance leases is $0.906m (2012: $1.242m).

Service concession arrangement

The Moa Point sewerage treatment plant is owned by the Council and operated by Veolia Water under a design, build and operate contract. Veolia Water also operates the Council-owned Western (Karori) and Carey’s Gully treatment plants. The plants and building assets are included in the drainage, waste and water asset class above.

Veolia Water is required to fund all renewals and repairs and return the plants to the Council in 2020 with a future life expectancy of at least 25 years.

As asset owner, the Council incurs all associated operating expenses, namely management fees, depreciation and finance costs. In accordance with section 100 of the Local Government Act 2002, the Council does not fully rates fund the plant’s depreciation expenditure.

Veolia’s monthly management fee is determined in accordance with annually adjusted tariffs. The contract terminates either on the expiry of the 25-year term (2020) or on the occurrence of a contract default event by either party. The contract’s right of renewal resides with the Council.

Note 19: Trade and other payablesTop

Council
Group

NOTE
2013
$000
2012
$000
2013
$000
2012
$000

Trade payables and accruals

42,875
41,667
47,118
45,834

Trade payables owing to related parties

- Subsidiaries
42
980
1,344
-
-

- Associates
42
712
677
712
677

Interest payable

2,826
2,759
2,826
2,759

Sundry payables

11,182
7,400
12,326
8,075

Total trade and other payables

58,575
53,847
62,982
57,345

Represented by:

current

57,945
53,217
62,352
56,715

non-current

630
630
630
630

Total trade and other payables

58,575
53,847
62,982
57,345

Trade payables are non-interest bearing and are normally settled on terms varying between seven days and the 20th of the month following the invoice date.

Note 20: Revenue in advanceTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Inspection and licensing fees
2,392
2,733
2,392
2,733

Lease rentals
2,584
2,667
2,584
2,667

Rates and water
1,457
1,152
1,457
1,152

Indoor Community Sports Centre
2,043
2,342
2,043
2,342

Wellington Venues
1,270
1,212
1,270
1,212

Revenue in advance – subsidiaries
-
-
487
754

Other
1,659
1,783
1,659
1,783

Total revenue in advance
11,405
11,889
11,892
12,643

Note 21: BorrowingsTop

The Council maintains a prudent borrowings position in relation to our equity and annual income. Borrowings are primarily used to fund the purchase of new assets or upgrades to existing assets that are approved through the Annual Plan and Long-term Plan processes.

Net Borrowings

The following table offsets current (12 months or less) investment deposits held against the gross borrowings to obtain a net borrowings position.

Net borrowings

Council
Group

NOTE
2013
$000
2012
$000
2013
$000
2012
$000

Total gross borrowing and overdraft facilities utilised

388,330
361,618
388,340
361,631

Less

Cash and cash equivalents
10
(44,389)
(22,622)
(50,518)
(26,912)

Bank deposits – term (3–12 months)
13
-
-
(400)
(1,520)

Total net borrowings

343,941
338,996
337,422
333,199

Further discussion and illustration of the net borrowing and investment position is included in the Financial Overview on page 76.

The gross borrowings are comprised as follows:

Gross borrowings
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Current

Bank facilities – short term – committed
-
2,000
-
2,000

Commercial paper
100,000
100,000
100,000
100,000

Debt securities – fixed rate bonds
25,000
9,000
25,000
9,000

Debt securities – floating rate notes
30,000
18,000
30,000
18,000

Finance leases
562
572
565
574

Total current
155,562
129,572
155,565
129,574

Non-current

Bank loans – term
3,035
1,242
3,035
1,242

Debt securities – fixed rate bonds
15,409
36,057
15,409
36,057

Debt securities – floating rate notes
214,000
194,000
214,000
194,000

Finance leases
324
747
331
758

Total non-current
232,768
232,046
232,775
232,057

Total borrowings
388,330
361,618
388,340
361,631

The Council's borrowing strategy is to minimise liquidity risk by avoiding concentration of debt maturity dates and to ensure there is long-term access to funds. Further information on the liquidity and market risks associated with borrowings is contained in Note 31: Financial instruments.

Bank facilities

A total of $145m (2012: $155m) of committed bank facilities is available to the Council. Some $55m is on a short term basis of less than one year and $90m for longer than one year. Interest is payable in arrears at wholesale market rates. A further $5m (2012: $5m) is available as an uncommitted facility with interest payable in arrears at wholesale market rates. Of these facilities, none were drawn at the end of the reporting period (2012: $2m).

Bank loans – term

Loans for the Council relate to the wastewater treatment plant joint venture with Porirua City Council, and comprise several individual loans totalling $3.035m (2012: $1.242m) with maturities from 2015 to 2036. The average effective interest rate applicable is 7.00%

Commercial paper

The Group has issued $100m of commercial paper with maturities of three months or less. The interest is paid on issue. The interest rates range from 2.69% to 2.87%.

Debt securities

The Group has issued $40m (2012: $44m) of fixed rate bonds with maturities from 31 March 2014 to 17 January 2020. Interest is payable six monthly in arrears. The interest rates range from 4.47% to 7.13%. The value of fixed rate debt securities includes a fair value hedge adjustment of $0.409m (2012: $1.057m) relating to the fair value interest rate swaps associated with these bonds.

The Group has issued $244m (2012: $212m) of floating rate notes with maturities from 30 September 2013 to 2 August 2019. Interest is payable quarterly in arrears. The interest rates vary from 2.76% to 4.15% and are subject to quarterly reset dates.

The following table shows the total borrowing facilities available to the Council and Group, and the use of these facilities at the end of the reporting period.

Gross borrowing and overdraft facilities
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Gross borrowing and overdraft facilities available

Bank facilities – short term – committed
55,000
55,000
55,000
55,000

Bank facilities – long term – committed
90,000
100,000
90,000
100,000

Bank facilities – short term – uncommitted
5,000
5,000
5,000
5,000

Bank loans – term
3,035
1,242
3,035
1,242

Bank overdraft
1,500
1,500
1,550
1,550

Commercial paper
100,000
100,000
100,000
100,000

Debt securities – fixed rate bonds
40,409
45,057
40,409
45,057

Debt securities – floating rate notes
244,000
212,000
244,000
212,000

Finance leases
886
1,319
896
1,332

Total gross borrowing and overdraft facilities available
539,830
521,118
539,890
521,181

Gross borrowing and overdraft facilities utilised

Bank facilities – short term – committed
-
2,000
-
2,000

Bank loans – term
3,035
1,242
3,035
1,242

Commercial paper
100,000
100,000
100,000
100,000

Debt securities – fixed rate bonds
40,409
45,057
40,409
45,057

Debt securities – floating rate notes
244,000
212,000
244,000
212,000

Finance leases
886
1,319
896
1,332

Total gross borrowing and overdraft facilities utilised
388,330
361,618
388,340
361,631

Gross borrowing and overdraft facilities unutilised

Bank facilities – short term – committed
55,000
53,000
55,000
53,000

Bank facilities – long term – committed
90,000
100,000
90,000
100,000

Bank facilities – short term – uncommitted
5,000
5,000
5,000
5,000

Bank overdraft
1,500
1,500
1,550
1,550

Total gross borrowing and overdraft facilities unutilised
151,500
159,500
151,550
159,550

Bank overdraft

An overdraft facility of $1.500m (2012: $1.500m) is available to the Council. This facility was undrawn as at 30 June 2013 (2012: undrawn). The Group has additional overdraft facilities of $0.050m (2012: $0.050m).

Security

Council borrowings are secured by way of a Debenture Trust Deed over the Council’s rates revenue.

Internal borrowings

Council borrows on a consolidated level and as such does not use internal borrowing and therefore does not prepare internal borrowing statements.

Ringfenced funds

The Council holds $15.442m (2012: $8.738m) of cash that may only be used for a specified purpose; this amount has been offset against borrowings. As part of the agreement with the Crown for the Housing Upgrade Project an amount of $13.059m (2012: $7.700m), representing the accumulated cash surpluses from the Housing activity, has been ringfenced for future investment in the Council's social housing assets. There is also an amount of $2.383m (2012: $1.038m) related to accumulated cash surpluses from the Waste Reduction and Energy Conservation activity which, under the Waste Minimisation Act 2008, must be ring fenced for future investment in waste activities.

Finance lease liabilities

The Group has entered into finance leases for items of plant and equipment, predominantly computer equipment. The net carrying amount of the leased items is included within plant and equipment shown in Note 18: Property, plant and equipment.

The finance leases can be renewed at the Group’s option, with rentals set by reference to current market rates for items of equivalent age and condition. The Group does have the option to purchase the asset at the end of the lease term.

There are no restrictions placed on the Group by any of the finance leasing arrangements.

Lease liabilities are effectively secured as the rights to the leased asset revert to the lessor in the event of default.

The finance lease liabilities are analysed as follows:

Analysis of finance lease liabilities
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Future minimum lease payments

Not later than one year
596
634
600
638

Later than one year and not later than five years
336
793
344
805

Later than five years
-
-
-
-

Total future minimum lease payments
932
1,427
944
1,443

Future finance charges
(46)
(108)
(48)
(111)

Present value of future minimum lease payments
886
1,319
896
1,332

Present value of future minimum lease payments

Not later than one year
562
572
565
574

Later than one year and not later than five years
324
747
331
758

Later than five years
-
-
-
-

Total present value of future minimum lease payments
886
1,319
896
1,332

Note 22: Employee benefit liabilities and provisionsTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Current

Short-term benefits

Payroll accruals
459
417
793
743

Holiday leave
4,525
4,992
5,481
5,964

Total short-term benefits
4,984
5,409
6,274
6,707

Termination benefits

Other contractual provisions
714
1,229
714
1,229

Total termination benefits
714
1,229
714
1,229

Total current
5,698
6,638
6,988
7,936

Non-current

Long-term benefits

Long service leave provision
-
-
78
101

Retirement gratuities provision
1,474
1,649
1,486
1,699

Total long-term benefits
1,474
1,649
1,564
1,800

Total employee benefit liabilities and provisions
7,172
8,287
8,552
9,736

Movements in the above short term and long term benefit provisions are analysed as follows:

Long service leave provision
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Opening balance
-
-
101
118

Additional or increased provision made
-
-
-
-

Release of provision
-
-
-
(17)

Amount utilised
-
-
(23)
-

Long service leave – closing balance
-
-
78
101

Retirement gratuities provision
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Opening balance
1,649
1,600
1,699
1,648

Movement in required provision
(23)
3
(23)
5

Release of unused provision
(170)
(14)
(182)
(14)

Rediscounting of interest
102
100
102
100

Amount utilised
(84)
(40)
(110)
(40)

Retirement gratuities – closing balance
1,474
1,649
1,486
1,699

Background

The Council’s retirement gratuities provision is a contractual entitlement for a reducing number of employees who, having qualified with 10 years service, will on retirement be entitled to a payment based on years of service and current salary. This entitlement has not been offered to Council employees since 1991. Based on the age of remaining participants the provision may not be extinguished until 2037, assuming retirement at age 65.

Estimation

The gross retirement gratuities provision (inflation adjusted at 2.30%) as at 30 June 2013, before discounting, is $2.093m (2012: $2.360m). The discount rate used is 6.50%.

Movements in the above termination benefits provision are analysed as follows:

Other contractual provisions
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Opening balance
1,229
373
1,229
373

New provision
714
1,229
714
1,229

Release of unused provision
(463)
(11)
(463)
(11)

Amount utilised
(766)
(362)
(766)
(362)

Other contractual provisions – closing balance
714
1,229
714
1,229

Background

The above provision is to cover estimated redundancy costs as at 30 June 2013 resulting from the current restructuring of the Council.

Note 23: Provision for other liabilitiesTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Current

ACC Partnership programme
20
10
20
10

Landfill post-closure costs
3,322
4,509
3,322
4,509

Storm costs
855
-
855
-

Weathertight homes
30,304
27,690
30,304
27,690

Total current
34,501
32,209
34,501
32,209

Non-current

Landfill post-closure costs
13,027
12,708
13,027
12,708

Weathertight homes
36,675
28,367
36,675
28,367

Total non-current
49,702
41,075
49,702
41,075

Total provision for other liabilities
84,203
73,284
84,203
73,284

Movements in the above provisions for other liabilities are analysed as follows:

ACC Partnership programme
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Opening balance
10
133
10
133

Change in provision for risks incurred
96
(5)
96
(5)

Amounts utilised
(86)
(118)
(86)
(118)

Total liability for claims outstanding
20
10
20
10

Represented by:

Present value of future payments
17
9
17
9

Risk margin
3
1
3
1

Total liability for claims outstanding
20
10
20
10

Background

The Council is a member of the Accident Compensation Corporation (ACC) partnership programme. The Council acts as an agent on behalf of ACC managing claims for its employees and providing entitlements under the Accident Insurance Act 1998 in relation to work-related personal injuries and illnesses.

Estimation

This provision represents an estimate of the claims outstanding at the end of the reporting period together with an estimate of the claims incurred but not yet reported.

Landfill post-closure costs
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Opening balance
17,217
16,830
17,217
16,830

Additional or increased provision made
29
1,011
29
1,011

Release of provision
(1,550)
(957)
(1,550)
(957)

Re-discounting of interest
1,069
1,129
1,069
1,129

Amount utilised
(416)
(796)
(416)
(796)

Landfill post-closure costs – closing balance
16,349
17,217
16,349
17,217

Background

The Council operates the Southern Landfill (Stage 3) and has a 21.5% joint venture interest in the Spicer Valley Landfill. It also manages a number of closed landfill sites around Wellington. The Council has responsibility for the closure of its landfills and to provide ongoing maintenance and monitoring of the landfills after they are closed.

As part of the closure of landfills, or landfill stages, the Council’s responsibilities include:

final cover application and vegetation;

incremental drainage control features; and

completing facilities for post closure responsibilities.

Post closure responsibilities include:

treatment and monitoring of leachate;

ground water and surface monitoring;

gas monitoring and recovery;

implementation of remedial measures such as needed for cover and control systems; and

ongoing site maintenance for drainage systems, final cover and vegetation.

The management of the landfill will influence the timing of recognition of some liabilities – for example, the Southern Landfill operates in stages. A liability relating to any future stages will only be created when the stage is commissioned and when refuse begins to accumulate in this stage.

Estimations

The long term nature of the liability means there are inherent uncertainties in estimating costs that will be incurred. The provision has been estimated using known improvements in technology and known changes to legal requirements. Future cashflows are discounted using the rate of 6.50%. The gross provision (inflation adjusted at 2.80%), before discounting, is $24.505m as at 30 June 2013 (2012: $28.630m). This represents the Council’s projection of the amount required to settle the obligation at the estimated time of the cash outflow.

Stage 3 of the Southern Landfill has an estimated remaining capacity of 658,051m³ (2012: 751,160m³) and is expected to close in 2018. These estimates have been made by the Council’s engineers based on expected future and historical volume information.

The Council’s provision includes a proportionate share of the Spicer Valley Landfill provision for post closure costs. The Spicer Valley Landfill has an estimated remaining capacity of 589,000m³ (2012: 620,000m³) and an estimated remaining life out to the end of 2022.

Storm costs
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Opening balance
855
-
855
-

Background

Following a severe storm in June 2013 a provision has been made for an estimate of the associated clean-up costs not covered through the self insurance reserve fund.

Weathertight homes
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Opening balance
56,057
50,864
56,057
50,864

Additional or increased provision made
14,965
9,903
14,965
9,903

Amount utilised
(4,043)
(4,710)
(4,043)
(4,710)

Weathertight homes – closing balance
66,979
56,057
66,979
56,057

Background

This provision represents the Council’s estimated liability relating to the settlement of claims arising in relation to the Weathertight Homes Resolution Services (WHRS) Act 2006 and civil proceedings for weathertightness.

A provision has been recognised for the potential net settlement of all known claims, including those claims that are being actively managed by the Council as well as claims lodged with WHRS but not yet being actively managed. The provision also includes an amount of $7.739m (2012: $8.933m) as a provision for future claims relating to weathertightness issues not yet identified or not yet reported.

Estimation

The Council has provided for the expected future costs of reported claims. The provision for active claims is based on the best estimate of the Council’s expected future costs to settle these claims and is reviewed on a case by case basis. The estimate for claims which have been notified and are not yet actively managed and unreported claims is based on actuarial assessments and other information on these claims. The nature of the liability means there are significant inherent uncertainties in estimating the likely costs that will be incurred in the future. This represents the Council’s best estimate of the amount required to settle the obligation at the estimated time of the cash outflow. Future cashflows are inflation adjusted and discounted using an applicable discount rate. The provision is net of any third-party contributions including insurance, where applicable.

The provision is based on best estimates and actuarial assessments and therefore actual costs incurred may vary significantly from those included in this provision, especially for future claims relating to weathertightness issues not yet identified or not yet reported.

The significant assumptions used in the calculation of the weathertight homes provision are as follows:

Amount claimed

Represents the expected amount claimed by the homeowner and is based on the actual amounts for claims already settled.

Settlement amount

Represents the expected amount of awarded settlement and is based on the actual amounts for claims already settled.

Amount expected to be paid by the Council

Represents the amount expected to be paid by the Council out of any awarded settlement amount and is based on the actual amounts for claims already settled. This figure has been increasing over the last few years as it is becoming more common for the other parties involved in a claim to be either in liquidation or bankrupt, or have limited funds and be unable to contribute to settlement.

Timing of claim payments

Represents the expected timing of claim payments based on the expected length of time it takes to settle claims. This assumption is based on experience and the actual timings for claims already settled.

Participation in Financial Assistance Package scheme

The provision for 2013 includes certain actuarial assumptions around the Government’s Financial Assistance Package (FAP). This assumption is based on actual and expected participation rates in the scheme.

Percentage of homeowners who will make a successful claim

Historical data collected on the number of claims lodged has enabled assumptions to be made on the percentage of homes built in the last 10 years which may experience weathertightness problems and therefore the percentage of homeowner who may make a successful claim.

The table below illustrates the potential impact on surplus or deficit of changes in some of the assumptions listed above.

Council and Group
2013
$000

10%
-10%

Assumption
Effect on Surplus or Deficit

Amount claimed
5,438
(5,439)

Settlement level award
5,438
(5,439)

Council contibution to settlement
5,438
(5,439)

Timing of claim payments
285
(213)

Participation in FAP scheme
(2,949)
2,949

Percentage of homeowners who will make a successful claim
774
(774)

Council and Group
2013
$000

2%
-2%

Assumption
Effect on Surplus or Deficit

Discount rate
(1,894)
2,444

Funding of weathertight homes settlements

Weathertight homes settlements are funded initially through borrowings. To repay those borrowings, the Council has agreed to incrementally increase rates by 0.75% per annum until such time as the weathertight homes liability has been settled and the associated borrowings and funding costs are repaid. To ensure that the funding of weathertight homes is fully transparent the associated settlement costs, borrowings and rates funding is reported annually.

Funding for weathertight homes liability
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Opening balance
(2,562)
-
(2,562)
-

Funding for weathertight homes liability
3,331
2,221
3,331
2,221

Total amounts paid
(4,043)
(4,711)
(4,043)
(4,711)

Interest allocation
(168)
(72)
(168)
(72)

Closing balance funded through borrowings
(3,442)
(2,562)
(3,442)
(2,562)

Note 24: Accumulated funds and retained earningsTop

Council
Group

NOTE
2013
$000
2012
$000
2013
$000
2012
$000

Accumulated funds

1,269,134
1,269,134
1,293,162
1,293,162

Retained earnings

Opening balance

3,628,545
3,550,373
3,650,181
3,597,367

Net surplus

28,187
62,186
30,442
49,962

Adjustment for wind-up of St James
40
-
14,577
-
-

Adjustment for disposal by associate
41
-
-
-
1,745

Transfers from revaluation reserves
25
370
25
370
25

Transfers from restricted funds
28
813
1,901
1,293
2,355

Transfers to restricted funds
28
(4,072)
(517)
(4,639)
(1,273)

Retained earnings – closing balance

3,653,843
3,628,545
3,677,647
3,650,181

Total accumulated funds and retained earnings

4,922,977
4,897,679
4,970,809
4,943,343

Note 25: Revaluation reservesTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Land – opening balance
144,672
142,136
144,672
142,136

Revaluation recognised in other comprehensive income
-
2,536
-
2,536

Transfer to retained earnings on disposal of assets
(370)
-
(370)
-

Land – closing balance
144,302
144,672
144,302
144,672

Buildings – opening balance
240,462
194,411
240,462
194,411

Revaluation recognised in other comprehensive income
-
46,076
-
46,076

Transfer to retained earnings on disposal of assets
-
(25)
-
(25)

Buildings – closing balance
240,462
240,462
240,462
240,462

Library collections – opening balance
7,147
7,147
7,147
7,147

Revaluation recognised in other comprehensive income
-
-
-
-

Library collections – closing balance
7,147
7,147
7,147
7,147

Drainage, waste and water – opening balance
641,549
641,549
641,549
641,549

Revaluation recognised in other comprehensive income
-
-
-
-

Drainage, waste and water – closing balance
641,549
641,549
641,549
641,549

Infrastructure land – opening balance
13,347
13,347
13,347
13,347

Revaluation recognised in other comprehensive income
-
-
-
-

Infrastructure land – closing balance
13,347
13,347
13,347
13,347

Roading – opening balance
370,516
370,516
372,389
372,389

Revaluation recognised in other comprehensive income
-
-
-
-

Roading – closing balance
370,516
370,516
372,389
372,389

Associates' revaluation reserves – opening balance
-
-
109,934
76,497

Revaluation recognised in other comprehensive income
-
-
-
33,437

Effect of changed shareholding in Chaffers Marina Holdings Limited
-
-
-
-

Associates' revaluation reserves – closing balance
-
-
109,934
109,934

Total revaluation reserves
1,417,323
1,417,693
1,529,130
1,529,500

These revaluation reserves are represented by:

Opening balance
1,417,693
1,369,106
1,529,500
1,447,476

Revaluation recognised in other comprehensive income
-
48,612
-
82,049

Effect of changed shareholding in Chaffers Marina Holdings Limited
-
-
-
-

Transfer to retained earnings on disposal of assets
(370)
(25)
(370)
(25)

Total revaluation reserves – closing balance
1,417,323
1,417,693
1,529,130
1,529,500

The revaluation reserves are used to record accumulated increases and decreases in the fair value of land, buildings, the library collection, and drainage, waste, water and roading assets.

The Council did not have any assets revalued during the period ending 30 June 2013 as part of its normal revaluation cycle, except for investment properties as explained in Note 17: Investment properties.

Note 26: Hedging reserveTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Opening balance
(23,896)
(9,173)
(24,050)
(10,399)

Cash flow hedge net movement recognised in other comprehensive income
14,104
(14,455)
14,104
(14,455)

Cash flow hedge movement reclassified to finance income
(163)
(268)
(163)
(268)

Cash flow hedge movement reclassified to share of equity accounted surplus of associate
-
-
153
1,072

Hedging reserve – closing balance
(9,955)
(23,896)
(9,956)
(24,050)

The hedging reserve shows accumulated fair value changes for interest rate swaps which satisfy the criteria for hedge accounting and have operated as effective hedges during the period. The Group includes the equity accounted net movement in the hedging reserve of our associate, Wellington International Airport Limited.

Note 27: Fair value through other comprehensive income reserveTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Opening balance
154
748
154
748

Fair value adjustment taken to other comprehensive income
(61)
(594)
(61)
(594)

Fair value through other comprehensive income – closing balance
93
154
93
154

This reserve reflects the accumulated fair value movement in the Council’s investment in Civic Assurance, for which there is no intention to sell. See Note 13: Other financial assets – for further information.

Note 28: Restricted fundsTop

Council
Group

NOTE
2013
$000
2012
$000
2013
$000
2012
$000

Special reserves and funds
29
17,553
14,288
20,240
16,888

Trusts and bequests
30
407
413
407
413

17,960
14,701
20,647
17,301

Opening balance

14,701
16,085
17,301
18,383

Additional funds

4,072
517
4,639
1,273

Funds utilised

(813)
(1,901)
(1,293)
(2,355)

Closing balance

17,960
14,701
20,647
17,301

These funds are held by the Council for specific purposes. More detailed information on the Council’s restricted funds is disclosed in Note 29: Special reserves and funds and Note 30: Trusts and bequests.

Note 29: Special reserves and fundsTop

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Wellington economic initiatives development fund

Opening balance
-
-
-
-

Additional funds
3,000
-
3,000
-

Wellington economic initiatives development fund – closing balance
3,000
-
3,000
-

Reserve purchase and development fund

Opening balance
299
1,199
299
1,199

Additional funds received
7
-
7
-

Funds utilised
(21)
(900)
(21)
(900)

Reserve purchase and development fund – closing balance
285
299
285
299

Early Settlers Memorial Park reserve

Opening balance
23
44
23
44

Funds utilised
(20)
(21)
(20)
(21)

Early Settlers Memorial Park reserve – closing balance
3
23
3
23

Self insurance reserve

Opening balance
9,723
10,138
9,723
10,138

Additional funds received
750
500
750
500

Funds utilised – net of recoveries
(451)
(915)
(451)
(915)

Self insurance reserve – closing balance
10,022
9,723
10,022
9,723

Subsidiaries' resticted funds

Opening balance
-
-
2,600
2,298

Additional funds received
-
-
567
756

Funds utilised
-
-
(480)
(454)

Subsidiaries' restricted funds – closing balance

-
2,687
2,600

Subdivision development reserve
4,119
4,119
4,119
4,119

Other reserves
124
124
124
124

Total special reserves and funds – closing balance
17,553
14,288
20,240
16,888

Wellington economic initiatives development fund

This fund has been set up to be part of an integrated approach to fostering growth in the economy.

Reserve purchase and development fund

This fund is used to purchase and develop reserve areas within the city. The funds were utilised for the costs associated with the purchase of reserve land on Te Ahumairangi (Tinakori) Hill and the Kinnoull Station.

Early Settlers Memorial Park reserve

This reserve is used to upgrade and maintain the Bolton Street Cemetery and surrounding park and walkways.

Self-insurance reserve

This reserve came into effect in 2001 and allows the Council to meet the uninsured portion of insurance claims. Annual additions to the reserve of $0.750m (2012: $0.500m) are funded through rates as identified in the Annual Plan.

Subsidiaries’ restricted funds

The restricted funds of the subsidiaries relate to the Wellington Museums Trust and the Wellington Zoo Trust:

The Wellington Museums Trust has three reserves; a Capital Reserve, a Colonial Cottage Museum Collection reserve and a City and Sea Collection reserve. The two collection reserves are for the purpose of future museum acquisitions.

The Wellington Zoo Trust has a number of trust and bequests made, which are held as restricted funds until utilised.

Note 30: Trusts and bequestsTop

Council
Opening
Balance
Additional
Funds
Funds
Utilised
Closing
Balance

2013
$000
2013
$000
2013
$000
2013
$000

A Graham Trust
2
1
-
3

A W Newton Bequest
272
14
-
286

Charles Plimmer Bequest
-
298
(298)
-

E A McMillan Estate
6
-
-
6

E Pengelly Bequest
11
1
-
12

F L Irvine Smith Memorial
6
-
-
6

Greek NZ Memorial Association
5
-
-
5

Kidsarus 2 Donation
3
-
-
3

Kirkcaldie and Stains Donation
17
-
-
17

Lewis Glover Bequest
-
-
-
-

QEII Memorial Book Fund
19
1
-
20

Schola Cantorum Trust
6
-
-
6

Stanley Banks Trust
31
-
(12)
19

Terawhiti Grant
10
-
-
10

W G Morrison Estate
11
-
(11)
-

Wellington Beautifying Society Bequest
14
-
-
14

Total trusts and bequests
413
315
(321)
407

Analysis of movements in trusts and bequests

Additional funds

Trusts and bequests receiving additional funds during the year were those where interest has been applied in accordance with the original terms and conditions.

Charles Plimmer – Distributions through the Public Trust recognised as income – $298,000

Funds utilised

Trusts and bequests funds utilised during the year were:

Charles Plimmer – to complete Point Dorset and initial work on the redevelopment of Grasslees Park in Tawa – $298,000

Stanley Banks – educational grants to children of WWII service personnel – $12,000.

Other than those specific trusts and bequests discussed above, the others are generally provided for library, educational or environmental purposes.

Note 31: Financial InstrumentsTop

The following tables provide an analysis of the Council’s financial assets and financial liabilities by reporting category as described in the summary of accounting policies:

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Financial assets

Loans and receivables

Cash and cash equivalents
44,389
22,622
50,518
26,912

Trade and other receivables
49,556
54,333
52,047
56,216

Other financial assets
5,866
5,161
6,266
6,681

Total loans and receivables
99,811
82,116
108,831
89,809

Financial assets at fair value through other comprehensive income

Other financial assets
2,503
2,681
2,903
4,201

Total financial assets at fair value through other comprehensive income
2,503
2,681
2,903
4,201

Hedged derivative financial instruments

Derivatives designated as fair value hedges
3,689
1,057
3,689
1,057

Total hedged derivative financial instruments
3,689
1,057
3,689
1,057

Total financial assets
106,003
85,854
115,423
95,067

Total non-financial assets
6,805,315
6,753,683
6,965,931
6,911,297

Total assets
6,911,318
6,839,537
7,081,354
7,006,364

Financial liabilities

Financial liabilities at amortised cost

Trade and other payables
58,575
53,847
62,982
57,345

Borrowings
388,330
361,618
388,340
361,631

Total financial liabilities at amortised cost
446,905
415,465
451,322
418,976

Derivative financial instruments

Derivatives designated as cash flow hedges
13,235
24,059
13,235
24,059

Total derivative financial instruments
13,235
24,059
13,235
24,059

Financial liabilities at fair value through surplus/deficit

Derivative financial instruments
-
222
-
222

Total financial liabilities at fair value through surplus/deficit
-
222
-
222

Total financial liabilities
460,140
439,746
464,557
443,257

Total non-financial liabilities
102,780
93,460
106,074
96,859

Total liabilities
562,920
533,206
570,631
540,116

Fair value

The fair values of all financial instruments equate to the carrying amount recognised in the Statement of Financial Position.

Fair value hierarchy

For those financial instruments recognised at fair value in the Statement of Financial Position, the fair values are determined according to the following hierarchy:

Level 1 – Quoted market price – financial instruments with quoted prices for identical instruments in active markets.

Level 2 – Valuation technique using observable inputs – financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable.

Level 3 – Valuation techniques with significant non-observable inputs – financial instruments valued using models where one or more significant inputs are not observable.

Council and Group
2013
2012

Level 1
$000
Level 2
$000
Level 3
$000
Level 1
$000
Level 2
$000
Level 3
$000

Financial assets

Financial assets at fair value through other comprehensive income
-
-
2,503
-
-
2,681

Derivative financial instruments

- fair value hedges
-
409
-
-
1,057
-

- cash flow hedges
-
3,280
-
-
-
-

Financial liabilities

Derivative financial instruments

- cash flow hedges
-
13,235
-
-
24,059
-

- non-hedged swaps
-
-
-
-
222
-

Reconciliation of fair value movements in Level 3
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Financial assets at fair value through other comprehensive income

- Equity investments

Opening balance - 1 July
2,681
1,275
2,681
1,275

Purchases
-
2,000
-
2,000

Disposals
(117)
-
(117)
-

Gains or losses recognised in other comprehensive income
(61)
(594)
(61)
(594)

Closing balance - 30 June
2,503
2,681
2,503
2,681

Financial risk management

As part of its normal operations, the Group is exposed to a number of risks. The most significant are credit risk, liquidity risk and market risk, which includes interest rate risk. The Group’s exposure to these risks and the action that the Group has taken to minimise the impact of these risks is outlined below:

Credit risk

Credit risk is the risk that a third party will default on its obligations to the Group, thereby causing a financial loss. The Group is not exposed to any material concentrations of credit risk other than its exposure within the Wellington region. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the Statement of Financial Position and the face value of financial guarantees to related parties (refer Note 37: Contingencies). There is currently no liability recognised for these guarantees as the Group does not expect to be called upon for payment.

The Group’s maximum exposure to credit risk at the end of the reporting period is:

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Financial instruments with credit risk

Cash and cash equivalents
44,284
22,574
50,403
26,853

Derivative financial instrument assets
3,689
1,057
3,689
1,057

Trade and other receivables

- Trade receivables
15,482
13,627
16,609
14,941

- Other receivables
34,074
40,706
35,438
41,275

Other financial assets

- Bank deposits – term
-
-
400
1,520

- LGFA borrower notes
480
240
480
240

- Loans to related parties – associates
1,407
1,248
1,407
1,248

- Loans to related parties – other organisations
3,979
3,673
3,979
3,673

Financial guarantees to related parties
700
800
700
800

Total financial instruments with credit risk
104,095
83,925
113,105
91,607

Receivables balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant.

The Council is exposed to credit risk as a guarantor of the LGFA’s borrowings. Further information about this exposure is explained in Note 37: Contingencies.

Credit quality of financial assets

The credit quality of financial assets that are neither past due or impaired can be assessed by reference to Standard and Poor’s credit ratings.

Counterparties with credit ratings
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Cash – registered banks

AA-
7,284
2,574
10,105
5,266

Short term deposits – registered banks

AA-
36,000
20,000
38,970
21,587

A+
1,000
-
1,328
-

Term deposits – registered banks

AA-
-
-
400
1,520

Term deposits – borrower notes – LGFA

AA+
480
240
480
240

Derivative financial instrument assets

AA-
3,689
1,057
3,689
1,057

Liquidity risk

Liquidity risk refers to the situation where the Group may encounter difficulty in meeting obligations associated with financial liabilities. The Group maintains sufficient funds to cover all obligations as they fall due. Facilities are maintained in accordance with the Council’s Liability Management Policy to ensure the Group is able to access required funds.

Contractual maturity

The following maturity analysis sets out the contractual cash flows for all financial liabilities that are settled on a gross cash flow basis. Contractual cash flows for financial liabilities include the nominal amount and interest payable.

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Contractual cash flows of financial liabilities excluding derivatives

0–12 months
224,791
192,578
229,832
196,079

1–2 years
39,429
65,023
38,804
65,027

2–5 years
176,441
154,421
176,444
154,430

More than 5 years
46,526
37,167
46,526
37,167

Total contractual cash flows of financial liabilities excluding derivatives
487,187
449,189
491,606
452,703

Represented by:

Carrying amount as per the Statement of Financial Position
446,905
415,465
451,322
418,976

Future interest payable
40,282
33,724
40,284
33,727

Total contractual cash flows of financial liabilities excluding derivatives
487,187
449,189
491,606
452,703

The following maturity analysis sets out the contractual cash flows for all financial liabilities that are settled on a net cash flow basis. Contractual cash flows for derivative financial liabilities are the future interest payable.

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Contractual cash flows of derivative financial liabilities

0–12 months
6,612
6,894
6,612
6,894

1–2 years
4,310
5,946
4,310
5,946

2–5 years
3,998
11,304
3,998
11,304

More than 5 years
39
1,653
39
1,653

Total contractual cashflow of derivative financial liabilities
14,959
25,797
14,959
25,797

Represented by:

Future interest payable
14,959
25,797
14,959
25,797

Total contractual cash flows of derivative financial liabilities
14,959
25,797
14,959
25,797

In addition to cash to be received in 2013/14 the Council currently has $145m in unused committed bank facilities available to settle obligations as well as $77.7m of cash, cash equivalents and receivables and is expected to have sufficient cash to meet all contractual liabilities as they fall due.

The Council is exposed to liquidity risk as a guarantor of all of LGFA’s borrowings. This guarantee becomes callable in the event of the LGFA failing to pay its obligations when they fall due. Information about this exposure is explained in Note 37: Contingencies.

The Council mitigates exposure to liquidity risk by managing the maturity of its borrowings programme within the following maturity limits:

Period | Minimum | Maximum | Actual
0 – 3 years | 20% | 60% | 60%
3 – 5 years | 20% | 60% | 21%
More than 5 years | 15% | 60% | 19%

Market risk

Market risk is the risk that the value of an investment will decrease or a liability will increase due to changes in market conditions. The Group uses interest rate swaps in the ordinary course of business to manage interest rate risks. A Treasury Committee, headed by senior management personnel, provides oversight for financial risk management and derivative activities and ensures any activities are in line with the Liability Management Policy which is formally approved by the Council as part of the Long-term Plan (LTP).

Cash flow and fair value interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Group’s financial instruments will decrease due to changes in market interest rates. The Group is exposed to interest rate risk from its interest-earning financial assets and interest-bearing financial liabilities. The Group is risk averse and seeks to minimise exposure arising from its borrowing activities primarily by entering into interest rate swap arrangements to fix interest rates on its borrowings.

The Group manages its cash flow interest rate risk by using interest rate swaps. These have the economic effect of converting borrowings from floating rates to fixed rates. The Council uses interest rate swaps to maintain a required ratio of borrowing between fixed and floating interest rates as specified in the liability management policy:

Minimum fixed rate | Maximum fixed rate | Actual % of fixed debt prior interest rate swaps | Actual % of fixed debt after interest rate swaps
50% | 95% | 12% | 76%

The table below shows the effect of the interest rate swaps at reducing the Council’s exposure to interest rate risk:

Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Financial instruments subject to interest rate volatility – before effect of interest rate swaps

Cash and cash equivalents
44,389
22,622
50,518
26,912

Bank facilities – short term
-
(2,000)
-
(2,000)

Bank loans
(3,035)
(1,242)
(3,035)
(1,242)

Commercial paper
(100,000)
(100,000)
(100,000)
(100,000)

Debt securities – floating rate notes
(244,000)
(212,000)
(244,000)
(212,000)

Total financial instruments subject to interest rate volatility – before effect of interest rate swaps
(302,646)
(292,620)
(296,517)
(288,330)

Effect of interest rate swaps in reducing interest rate volatility

Effect of fair value hedge
(25,000)
(34,000)
(25,000)
(34,000)

Effect of cash flow interest rate swaps – hedged
277,000
290,000
277,000
290,000

Effect of cash flow interest rate swaps – non-hedged
-
10,000
-
10,000

Total effect of interest rate swaps in reducing interest rate volatility
252,000
266,000
252,000
266,000

Total financial instruments subject to interest rate volatility – after effect of interest rate swaps
(50,646)
(26,620)
(44,517)
(22,330)

These interest rate swaps have a nominal value which represents the value of the debt they are covering (included above). This amount is not recorded in the financial statements; instead the fair value of these interest rate swaps is recognised. This represents the difference between the current floating interest rate and the fixed swap interest rate. At 30 June 2013 the fair value of the interest rate swaps was -$9.546m (2012: -$23.224m). This liability will reduce to zero as the swaps reach the end of their lives, and therefore do not represent a liability that the Council will be required to pay cash to settle.

Given that the interest rate swaps have terms that match with the borrowings (short term bank facilities, commercial paper and debt securities), it is appropriate to include the effect of the interest rate swaps on the borrowings interest rate and present the net effective interest rates for the underlying borrowings:

Weighted effective interest rates
Council
Group

2013
%
2012
%
2013
%
2012
%

Investments

Cash and cash equivalents
3.18
3.45
3.17
3.24

Bank deposits – term
-
-
4.25
4.40

LGFA – borrower notes
3.35
3.37
3.35
3.37

Loans to related parties
-
-
-
-

Borrowings

Bank facilities – short term
-
3.70
-
3.70

Bank loans
7.00
7.00
7.00
7.00

Commercial paper
2.78
2.81
2.78
2.81

Debt securities
3.50
4.05
3.50
4.05

Derivative financial instruments – hedged
5.00
5.01
5.00
5.01

Derivative financial instruments – non-hedged
-
6.31
-
6.31

Finance leases
10.28
10.32
10.29
10.34

Loans to related parties, being the loans to the Wellington Regional Stadium Trust and to the Karori Wildlife Sanctuary Trust, are both on interest free terms.

Sensitivity analysis

While the Council has significantly reduced the impact of short-term fluctuations on the Group’s earnings through interest rate swap arrangements, there is still some exposure to changes in interest rates.

The tables below illustrate the potential surplus and deficit impact of a 1% change in interest rates based on the Council’s and the Group’s exposures at the end of the reporting period:

Council

2013
$000

+1%
-1%
+1%
-1%

Interest rate risk
Note
Effect on
Surplus or Deficit
Effect on
Other Comprehensive Income

Financial assets

Cash and cash equivalents – Council
a
444
(444)
-
-

LGFA – Borrower notes

5
(5)
-
-

Derivatives – interest rate swaps – hedged
b
-
-
126
127

Financial liabilities

Bank term loans

(30)
30
-
-

Commercial paper
c
(180)
180
-
-

Debt securities
d
(1,040)
1,040
-
-

Derivatives – interest rate swaps – hedged
b
-
-
16,833
(18,046)

Total sensitivity to interest rate risk

(801)
801
16,959
(17,919)

a. Cash and cash equivalents

Council funds are in a number of different registered bank accounts with interest payable on the aggregation of all accounts. A movement in interest rates of plus or minus 1% has an effect on interest income of $0.444m.

b. Derivatives – interest rate swaps

Derivatives include interest rate swaps with a fair value totalling -$9.546m. A movement in interest rates of plus 1% has an effect on increasing the unrealised value of the hedged interest rate swaps by $16.959m. A movement in interest rates of minus 1% has an effect on reducing the unrealised value of the hedged interest rate swaps by $17.919m.

c. Commercial paper

Commercial paper is part of a programme and subject to floating rates and totals $100m. The full exposure to changes in interest rates has been reduced because the Council has $82m of the debt at fixed rates through interest rate swaps. A movement in interest rates of plus or minus 1% has an effect on the interest expense of $0.180m.

d. Debt securities

Debt securities at floating rates total $244m. The full exposure to changes in interest rates has been reduced because the Council has $195m of this debt at fixed rates through interest rate swaps. Debt securities at fixed rates total $40m of which $25m is subject to changes in interest rates as it has been swapped to floating through interest rate swaps. A movement in interest rates of plus or minus 1% has an effect on the interest expense of $1.040m.

Equity management

The Group’s equity includes accumulated funds and retained earnings, revaluation reserves, a hedging reserve, a fair value through other comprehensive income reserve and restricted funds which comprise special funds, reserve funds and trusts and bequests.

The Local Government Act 2002 (the Act) requires the Council to manage its revenues, expenses, assets, liabilities, investments, and general financial dealings prudently and in a manner that promotes the current and future interests of the community. Ratepayer funds are largely managed as a by-product of managing revenues, expenses, assets, liabilities, investments, and general financial dealings.

The objective of managing these items is to achieve intergenerational equity, which is a principle promoted in the Act and applied by the Council. Intergenerational equity requires today’s ratepayers to meet the costs of utilising the Council’s assets but does not expect them to meet the full cost of long-term assets that will benefit ratepayers in future generations. Additionally, the Council has asset management plans in place for major classes of assets, detailing renewal and programmed maintenance. These plans ensure ratepayers in future generations are not required to meet the costs of deferred renewals and maintenance.

The Act requires the Council to make adequate and effective provision in its Long-term Plan and in its Annual Plan (where applicable) to meet the expenditure needs identified in those plans. The Act sets out the factors that the Council is required to consider when determining the most appropriate sources of funding for each of its activities. The sources and levels of funding are set out in the funding and financial policies in the Council’s LTP.

Note 32: Analysis of Operating Surplus by Strategic AreaTop

This analysis by strategic area is a summary of the ‘what it cost’ information within the Statements of Service Performance. Refer to pages 14 to 74 for more detailed information including variance explanations in respect of the Council’s strategies and activities.

Operating Income and Expenditure

Council
Income
Expenditure
Net
Net

Actual
2013
$000
Budget
2013
$000
Actual
2013
$000
Budget
2013
$000
Actual
2013
$000
Budget
2013
$000
Variance
2013
$000

Strategic area

Governance
475
384
14,993
15,287
(14,518)
(14,903)
385

Environment
21,732
14,897
140,030
140,022
(118,298)
(125,125)
6,827

Economic development
14,835
-
33,033
19,404
(18,198)
(19,404)
1,206

Cultural wellbeing
1,115
1,047
17,938
17,898
(16,823)
(16,851)
28

Social and recreation
63,707
70,642
96,694
97,468
(32,987)
(26,826)
(6,161)

Urban development
19,725
10,684
36,453
25,777
(16,728)
(15,093)
(1,635)

Transport
34,385
33,400
50,713
53,737
(16,328)
(20,337)
4,009

Total strategic areas
155,974
131,054
389,854
369,593
(233,880)
(238,539)
4,659

Council
290,441
285,552
28,374
9,587
262,067
275,965
(13,898)

Total strategic areas and Council
446,415
416,606
418,228
379,180
28,187
37,426
(9,239)

The variance in Governance is due to savings arising from personnel vacancies during the year.

The variance in Environment is due to the recognition of unbudgeted vested asset income ($6.3m) for water, stormwater and sewerage pipes and fittings. The variance was also impacted by a favourable movement in the closed landfill provision offset by the need to provide for unbudgeted clean-up costs relating to the June storm.

The variance in Economic Development is due to the receipt of unbudgeted sub-tenant revenue upon the transition of St James Trust assets to Council, as well as lower depreciation than budgeted as a result of the 2011/12 asset revaluation process.

The variance in Social and Recreation is due to less capital funding being recognised as costs on the Berkeley Dallard flats upgrade are occurring later than anticipated in the budget. In addition we have received less revenue than expected particularly from swimming pools.

The variance in Urban Development relates to the unbudgeted $3m contribution towards the National War Memorial Park as approved by Council on 26 September 2012 and the consolidation of Wellington Waterfront Project with an increase in depreciation and insurance costs.

The variance in Transport is due to the recognition of unbudgeted vested asset income ($3.6m) for roading land, roads, footpaths and curb and channel. Depreciation for roading assets was also lower than budgeted ($0.4m).

The variance in Council is due to a number of factors including a higher than budgeted Wellington International Airport Limited dividend income and commercial lease revenue received offset by reduced rates revenue and development contributions. There is also an increase in the provision for weathertight homes.

Other major operating income and expenditure budget variances are explained within Note 33: Major budget variations.

Council
Income
Expenditure
Net
Net

Actual
2012
$000
Budget
2012
$000
Actual
2012
$000
Budget
2012
$000
Actual
2012
$000
Budget
2012
$000
Variance
2012
$000

Strategic area

Governance
459
398
15,211
15,998
(14,752)
(15,600)
848

Environment
23,136
13,091
136,433
133,295
(113,297)
(120,204)
6,907

Economic development
14,228
248
32,687
16,731
(18,459)
(16,483)
(1,976)

Cultural wellbeing
925
1,042
16,792
16,826
(15,867)
(15,784)
(83)

Social and recreation
81,223
78,030
97,933
97,367
(16,710)
(19,337)
2,627

Urban development
17,006
11,164
29,223
25,035
(12,217)
(13,871)
1,654

Transport
31,420
33,430
49,830
54,301
(18,410)
(20,871)
2,461

Total strategic areas
168,397
137,403
378,109
359,553
(209,712)
(222,150)
12,438

Council
296,935
281,427
25,037
8,129
271,898
273,298
(1,400)

Total strategic areas and Council
465,332
418,830
403,146
367,682
62,186
51,148
11,038

Due to a realignment of some activities within the above strategic areas the results for the 2012 year above have changed slightly from those previously published so that they are directly comparable with the 2013 results.

Note 33: Major budget variationsTop

Statement of Comprehensive Financial Performance
Council
Council

2013
$000
2012
$000

Reconciliation of actual surplus to underlying surplus and variance to budget

Council actual net surplus
28,187
62,186

Less:

Fair value movements:

Related party loans
-
1,002

Investment property revaluation
(5,385)
3,418

Other
(298)
(534)

Total fair value movements
(5,683)
3,886

Additional net expenditure from Wellington Waterfront and Venues Projects and Porirua Joint Ventures
6,764
3,678

Changes to external funding for capital expenditure:

Restricted funds income
(72)
196

Decrease in development contributions revenue
644
2,319

Timing of the Housing New Zealand capital grant
6,513
(5,348)

Change in New Zealand Transport Agency reimbursement – capital
(139)
1,601

Additional external funding towards capital projects
(271)
(849)

Total changes to external funding for capital expenditure
6,675
(2,081)

Vested assets – income
(10,519)
(7,163)

Gain on disposal of assets
(360)
(6,701)

Loss on disposal of assets and intangible assets
1,487
230

Expenditure not funded under section 100 of LGA

NZTA funded transport projects
(31)
(1,772)

Moa Point Treatment Plant and Living Earth
(517)
(25)

Total additional expenditure not funded under section 100 of LGA
(548)
(1,797)

Underlying Council actual net surplus
26,003
52,238

less Council budget net surplus
37,426
51,148

Council underlying variance
(11,423)
1,090

Major budget variations

Unbudgeted revenue/expenditure:

Restatement of weathertight homes provision
(14,965)
(9,903)

Provision for storm costs
(855)
-

Insurance costs (net of recoveries) funded through self insurance reserve
(451)
(915)

Total unbudgeted revenue/expenditure
(16,271)
(10,818)

Significant variations from budget

Dividends in excess of budget (including Wellington International Airport Limited)
1,624
13,138

Decrease in income from activities
(3,276)
(2,366)

Decrease in depreciation
2,820
507

Decrease in rates revenue
(2,228)
134

Decrease in net interest expense
1,997
986

Other net variances27
2,039
359

Total significant variations from budget
2,976
12,758

Council underlying variance excluding ringfenced amounts
(13,295)
1,940

Variance in ringfenced City Housing deficit
505
(1,581)

Variance in ringfenced Waste Activity surplus

731

Council underlying variance
(11,423)
1,090

Statement of Changes in Equity

Significant variations from budgeted changes in equity are as follows:

$9.239m of lower surplus in the current year,

$13.941m fair value increase in the hedging reserve.

Total equity is $18.981m higher than budgeted due to the $4.702m of variations above, plus a $13.908m higher opening position due to annual plan timing.

Statement of Financial Position

Significant variations from budget are as follows:

Current assets are $45.815m higher than budget primarily due to:

difference in short-term deposits due to the timing of receipt of cash and repayment of commercial paper – $19.500m,

a higher level of cash due to differences in short term cash requirements, we aim to hold minimal cash balances and use all additional money received to either repay debt or put on deposit – $5.169m,

higher current receivables due to a movement of one large debtor between non-current and current – $10.675m,

higher prepayments largely due to differences in the timing of when payments for insurance premiums were made compared to what was assumed in the budget – $9.179m.

Non-current assets are $23.922m higher than budget primarily due to:

higher assets levels, both physical – $12.954m and intangible – $5.199m due to spend on our annual capital expenditure programme,

higher other financial assets due to the investments in and with the LGFA – $2.363m offset by a reduction in the fair value of the investment in Civic Insurance due to a reduction in its net asset balance – ($0.655m),

higher investment property values due to revaluations – $2.209m,

higher derivative values due to increases in interest rate valuation curves – $2.005m.

Total liabilities are $50.756m higher than budget due to:

changes in the maturity profile of our debt, as well as changes in the expected timing of weathertight home claim payments, that have resulted in most of the change in total liabilities being within current liabilities,

changes in gross debt levels from budget due to underspends in the capital expenditure programme as well as a higher level of short-term deposits – $14.662m,

a significant increase in our provisions – $33.844m, primarily relating to an increase in the expected total future settlements relating to weathertight homes.

Statement of Cash Flows

Significant variations from budget are as follows:

Net cash flows from operating activities decreased by $9.777m primarily due to higher payments to suppliers and employees – $14.096m and grants paid – $3.483m offset by increased revenue from activities and other income – $10.670m,

Net cash flows from investing activities decreased by $35.533m primarily due to the decrease in the purchase of property, plant and equipment – $29.314m.

Note 34: Analysis of capital expenditure by strategic areaTop

This analysis reports capital expenditure performance against the approved budget contained within the Annual Plan by strategic area. The note reflects Wellington City Council capital expenditure only.

Council
Annual Plan Budget
Budget Brought Forward from
Total Capex Budget
Budget to Carry Forward to
Available Capex Budget
Actual Capex
Variance Net

2013
$000
2012
$000
2013
$000
2014
$000
2013
$000
2013
$000
2013
$000

Strategic area

Governance
-
31
31
-
31
19
12

Environment
27,186
5,254
32,440
(5,467)
26,973
26,963
10

Economic development
5,494
1,736
7,230
(3,531)
3,699
3,313
386

Cultural wellbeing
40
-
40
-
40
10
30

Social and recreation
47,075
8,057
55,132
(13,239)
41,893
41,091
802

Urban development
9,545
2,979
12,524
(2,897)
9,627
11,726
(2,099)

Transport
32,258
8,473
40,731
(1,655)
39,076
39,803
(727)

Total strategic areas
121,598
26,530
148,128
(26,789)
121,339
122,925
(1,586)

Council
14,539
5,032
19,571
(5,954)
13,617
11,192
2,425

Total capital expenditure
136,137
31,562
167,699
(32,743)
134,956
134,117
839

Excluding additional expenditure funded from external sources:

Zoo Trust – Contribution
461

Trench Sharing – Wellington Electricity Lines Limited
109

Track Maintenance – Spicer Forest
99

The Nest Te Kōhanga – Zoo Trust
82

Town Belt Maintenance – Max Drake
50

Willis Street – Wellington Electricity Lines Limited
31

Ross Street – Wellington City Transport Limited

18

ASB Sports Centre – Four Winds
15

Karori Recreation Centre – Energy Efficiency and Conservation Authority
8

Minor funding for capital works
2

Total adjusted net variance
1,714

The capex variance of $0.839m has been adjusted for additional external funding received over and above budget.

Budget to carry forward

Amounts committed for future expenditure at end of the reporting period from within these capital expenditure budget carry forwards have been included within Note 36: Commitments.

Significant acquisitions and replacements of assets

In accordance with the provisions of Schedule 10 of the Local Government Act 2002, information in respect of significant acquisitions and replacements of assets is reported within the Statements of Service Performance.

Council
Annual Plan Budget
Budget Brought Forward from
Total Capex Budget
Budget to Carry Forward to
Available Capex Budget
Actual Capex
Variance Net

2012
$000
2011
$000
2012
$000
2013
$000
2012
$000
2012
$000
2012
$000

Strategic area

Governance
-
31
31
(31)
-
-
-

Environment*
30,610
4,208
34,818
(5,254)
29,564
30,716
(1,152)

Economic development
2,201
332
2,533
(1,736)
797
212
585

Cultural wellbeing
43
232
275
-
275
261
14

Social and recreation
58,967
9,287
68,254
(8,057)
60,197
66,063
(5,866)

Urban development
6,688
3,197
9,885
(2,979)
6,906
7,337
(431)

Transport
38,781
7,553
46,334
(8,473)
37,861
38,307
(446)

Total strategic areas
137,290
24,840
162,130
(26,530)
135,600
142,896
(7,296)

Council
16,230
3,839
20,069
(5,032)
15,037
11,324
3,713

Total capital expenditure
153,520
28,679
182,199
(31,562)
150,637
154,220
(3,583)

* The budget carry forward for 2011/12 includes a carry forward from 2008/09

Excluding additional expenditure funded from external sources:

Zoo Trust – Contribution
435

Housing Grant – accrued income
5,348

Waste Activity surplus for capital works
450

Khandallah Town Hall – Cornerstone Trust
157

Indoor Community Sports Centre – NZCT SPARC funding
940

Cobblestone Light Box – Victoria University
17

Willis Street – Citylink
131

Wakefield Park – Lotteries funding
200

Minor funding for capital works
12

Total adjusted net variance
4,107

Note 35: Capital expenditure performanceTop

Capital expenditure projects

The following analysis shows the actual capital expenditure against budget. Projects are classified according to the strategic area. Detailed commentaries on each strategic area, activity and the outcomes that they contribute towards are contained in each strategic section of the Statements of Service Performance.

Actual Expenditure28
Proposed Budget Carry Forward29
Total Forecast Expenditure
Budget30
Notes

2013
$000
2013
$000
2013
$000
2013
$000

Governance

City governance and engagement
19
-
19
31

Total Governance
19
-
19
31

Environment

Local parks and open spaces
894
551
1,445
1,476

Botanical gardens
1,065
320
1,385
1,438

Water network
12,170
397
12,567
12,387

Sewage collection and disposal network
6,882
831
7,713
7,948
1

Stormwater management
2,564
1,208
3,772
3,792

Conservation visitor attractions
2,144
1,177
3,321
3,240

Other
1,244
983
2,227
2,159

Total Environment
26,963
5,467
32,430
32,440

Economic development

Visitor attractions and Convention venues
3,313
3,531
6,844
7,230
2

Total Economic development
3,313
3,531
6,844
7,230

Cultural Wellbeing

Other
10
-
10
40

Total Cultural wellbeing
10
-
10
40

Social and recreation

Swimming Pools
4,054
6,272
10,326
10,079
3

Sportsfields
1,375
34
1,409
1,413

Libraries
1,995
-
1,995
1,993

Housing
31,744
6,634
38,378
39,510
4

Public toilets
734
150
884
885

Other
1,189
149
1,338
1,252

Total Social and recreation
41,091
13,239
54,330
55,132

Urban development

Urban planning and policy
967
527
1,494
1,494

Waterfront development
6,307
418
6,725
4,460
5

Public spaces and centres development
2,259
1,330
3,589
3,551

Earthquake risk mitigation – built environment
2,193
622
2,815
3,019
6

Total Urban development
11,726
2,897
14,623
12,524

Transport

Vehicle network
27,675
1,465
29,140
28,327
7

Cycle network
1,353
190
1,543
1,543

Passenger transport network
1,033
-
1,033
1,013

Pedestrian network
4,674
-
4,674
4,811

Network-wide control and management
2,526
-
2,526
2,519

Road safety
2,542
-
2,542
2,518

Total Transport
39,803
1,655
41,458
40,731

Council

Organisational projects including IT
11,192
5,954
17,146
19,571

Total Council
11,192
5,954
17,146
19,571

Total capital expenditure projects
134,117
32,743
166,860
167,699

Savings achieved on several sewer renewal projects, and a change in approach in addressing bypass flows has resulted in savings in costs relating to the earlier proposed UV treatment upgrade.

Savings identified on deferred maintenance costs.

The cost of the new hydrotherapy pool at the Wellington Regional Aquatic Centre and the new teaching pool at the Karori pool were slightly ahead of budget.

Savings on renewals and upgrade projects.

In October 2012 the Council approved an additional $2.9m of capital spend for the strengthening of Shed 6 wharf.

Savings relating to the Mayor’s office relocation.

Increased costs on the Westchester Drive due to time delays experienced and required variations. Additional costs are offset by higher than budgeted external capital revenue received for the project in 2011/12.

Note 36: CommitmentsTop

Capital commitments
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Approved and contracted – property, plant and equipment
48,790
63,935
51,775
63,935

Approved and contracted – investment properties
35
6,940
35
6,940

Approved and contracted – intangibles
1,400
821
1,400
821

Approved and contracted – share of associates
-
-
5,745
2,400

Approved and contracted – share of joint ventures
-
-
-
-

Total capital commitments
50,225
71,696
58,955
74,096

The capital commitments above often span more than one financial year and includes the capital expenditure carried forward from Note 34: Analysis of capital expenditure by strategic area, which forms only part of the total commitments shown.

Operating leases – Group as lessee

The Group leases certain items of plant, equipment, land and buildings under various non-cancellable operating lease agreements.

The lease terms are between two and 21 years and the majority of the lease agreements are generally renewable at the end of the lease period at market rates.

The amount of minimum payments for non-cancellable operating leases is recognised as an expense in Note 6: Expenditure on operating activities.

The future expenditure committed by these leases is analysed as follows:

Non-cancellable operating lease commitments as lessee
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Plant and equipment

Not later than one year
22
194
154
345

Later than one year and not later than five years
8
17
172
219

Later than five years
-
-
-
-

Land and buildings

Not later than one year
981
1,909
1,263
2,328

Later than one year and not later than five years
2,135
3,763
2,392
4,218

Later than five years
1,398
1,760
1,398
1,760

Total non-cancellable operating lease commitments as lessee
4,544
7,643
5,379
8,870

Operating leases – Group as lessor

The Group has also entered into commercial property leases of its investment property portfolio and other land and buildings.

The land and buildings held for investment purposes are properties which are not held for operational purposes and are leased to external parties.

Ground leases are parcels of land owned by the Group in the central city or on the waterfront that are leased to other parties who own the buildings situated on the land. The leases are generally based on 21-year perpetually renewable terms. As these parcels of land are held for investment purposes the rentals are charged on a commercial market basis.

The land and buildings not held for investment purposes are either used to accommodate the Group’s operational activities or are held for purposes such as road widening, heritage, or are being monitored for compliance reasons. In some cases, parts of these assets are leased to external parties on a commercial basis. The terms of these commercial leases generally range from one to 15 years.

The committed revenues expected from these lease portfolios are analysed as follows:

Non-cancellable operating lease commitments as lessor
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Investment properties

Not later than one year
9,344
9,755
9,344
9,755

Later than one year and not later than five years
36,280
36,430
36,280
36,430

Later than five years
89,994
97,720
89,994
97,720

Land and buildings

Not later than one year
2,158
4,848
1,070
3,787

Later than one year and not later than five years
4,246
9,326
1,045
5,115

Later than five years
4,150
11,238
4,150
11,146

Total non-cancellable operating lease commitments as lessor
146,172
169,317
141,883
163,953

Commitments to related parties

The Council and Group have no commitments to key management personnel beyond normal employment obligations.

The Council has commitments to its subsidiaries and associates only to the extent of the expenditure approved in the Long-term Plan for the period ending 30 June 2014. Other expenditure approved as part of the Long-term Plan for the period from 1 July 2014 to 30 June 2022 is subject to change and approval each year through the Annual Plan.

Council
Annual Plan
LTP
Total

2013/14
$000
2015–2022
$000

$000

Subsidiaries

Wellington Waterfront
1,076
8,605
9,681

Wellington Zoo Trust
2,715
22,392
25,107

Wellington Museums Trust
7,710
61,682
69,392

Positively Wellington Tourism
7,375
56,041
63,416

Carter Observatory
300
2,400
2,700

Wellington Venues
-
819
819

Total subsidiary commitments
19,176
151,939
171,115

Associates

Basin Reserve Trust
355
2,840
3,195

Total associate commitments
355
2,840
3,195

Other related parties

Karori Wildlife Sanctuary Trust
875
875
1,750

Total other related party commitments
875
875
1,750

Total related party commitments
20,406
155,654
176,060

Note 37: ContingenciesTop

Contingent liabilities
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Financial guarantees to community groups
700
800
700
800

Uncalled capital – LGFA
1,883
2,000
1,883
2,000

Other legal proceedings
172
280
172
280

Share of associates' contingent liabilities
-
-
-
-

Share of joint ventures' contingent liabilities
-
-
-
-

Total contingent liabilities
2,755
3,080
2,755
3,080

The financial guarantees to community groups above are analysed below:

Outstanding debt subject to Council guarantees
Council
Group

2013
$000
2012
$000
2013
$000
2012
$000

Karori Wildlife Sanctuary Trust
700
800
700
800

Total outstanding debt subject to Council guarantees
700
800
700
800

Karori Wildlife Sanctuary Trust (Zealandia)

The Council has provided a guarantee over a term loan facility to a maximum limit of $1.550m plus any outstanding interest and enforcement costs.

NZ Local Government Funding Agency Limited (LGFA)

The Council is one of 30 local authority shareholders and 8 local authority guarantors of the LGFA. In that regard the Council has uncalled capital of $1.866m. When aggregated with the uncalled capital of other shareholders, $20m is available in the event that an imminent default is identified. Also, together with the other shareholders and guarantors, Council is a guarantor of all of LGFA’s borrowings. At 30 June 2013, LGFA had borrowings totalling $2,422m (2012: $835m).

Financial reporting standards require the Council to recognise the guarantee liability at fair value. However, the Council has been unable to determine a sufficiently reliable fair value for the guarantee, and therefore has not recognised a liability. The Council considers the risk of LGFA defaulting on repayment of interest or capital to be very low on the basis that we are not aware of any local authority debt default events in New Zealand; and local government legislation would enable local authorities to levy a rate to recover sufficient funds to meet any debt obligations if further funds were required.

Other legal proceedings

Other legal proceedings are current claims against the Council and Group as a result of past events which are currently being contested. The amounts shown reflect potential liability for financial reporting purposes only and do not represent an admission that any claim is valid. The outcome of these remains uncertain at the end of the reporting period. The maximum exposure to Council is anticipated to be less than $0.172m.

Unquantified contingent liabilities

The Government’s Weathertight Homes Financial Assistance Package aims to help people get their non-weathertight homes fixed faster, and centres on the Government and local authorities each contributing 25% of agreed repair costs and affected homeowners funding the remaining 50% backed by a Government loan guarantee. The impact that this package will have on future claim numbers and the quantum of those claims remains unknown at this stage since the scheme is still in its early stage. A provision for known claims and future claims has been made (refer Note 23: Provisions for other liabilities), but there may be an uplift in the number of claims as a result of the Government package. The impact and cost of this potential uplift in claims is unknown at this stage and cannot be measured reliably and therefore the Council and Group have an unquantified contingent liability.

On 11 October 2012 the Supreme Court of New Zealand released a decision clarifying that councils owe a duty of care when approving plans and inspecting construction of a building which was not purely a residential building. The Court held that there was no principled basis for distinguishing between the liability of those who played a role in the construction of residential buildings as against the construction of non-residential buildings. This extends the scope of the potential liability for the Council to include non-residential buildings consented under the Building Act 1991.

Through the process of working with our actuaries, it has been identified that due to a lack of historical and current information relating to non-residential building claims, a reliable estimate of any potential liability cannot be quantified at this time.

There are various other claims that the Council and Group are currently contesting which have not been quantified due to the nature of the issues, the uncertainty of the outcome and/or the extent to which the Council and Group have a responsibility to the claimant. The possibility of any outflow in settlement in these cases is assessed as remote.

Contingent assets

The Council and Group have no contingent assets as at 30 June 2013 (2012: $Nil).

Note 38: Group structureTop

Wellington City Council reporting entity (Council)

Wellington City Council Group reporting entity (Group)

The Council has established several Council-Controlled Organisations (CCOs) and Council-Controlled Trading Organisations (CCTOs) to help it achieve its goals for Wellington. These organisations were set up to independently manage Council facilities, or deliver specific services and developments on behalf of Wellington residents. A report on these organisations is found on page 190. The Council has made appointments to other organisations, which make them Council Organisations (as defined in the Local Government Act 2002) but they are not Council-controlled or part of the Group.

Percentages above represent the Council’s interest and/or ownership (for accounting purposes) in each of the entities in the Group.

The legal name of the subsidiary is the Partnership Wellington Trust Inc.

The legal name of the associate is Capacity Infrastructure Services Limited.

The legal name of the subsidiary is Wellington Venues Limited.

Note 39: Joint venturesTop

The Council has significant interests in the following joint ventures:

Joint venture
Interest 
2013
Interest 
2012
Nature of business

Wastewater treatment plant – Porirua City Council
27.6%
27.6%
Owns and operates a wastewater treatment plant and associated trunk sewers and pumping stations that provide services to Wellington City’s northern suburbs.

Spicer Valley Landfill – Porirua City Council
21.5%
21.5%
Owns and operates a sanitary landfill that provides services to Wellington City’s northern suburbs.

The end of the reporting period for the joint ventures is 30 June. Included in the financial statements are the following items that represent the Council’s and Group’s interest in the assets and liabilities of the joint ventures.

Share of Net Assets
2013
$000
2012
$000

Assets

Current

Inventory
5
5

Trade and other receivables
693
-

Non-current

Property, plant and equipment
19,430
19,444

Share of total assets
20,128
19,449

Liabilities

Current

Trade and other payables
-
62

Non-current

Borrowings
3,035
1,242

Provisions for other liabilities
1,768
1,680

Share of total liabilities
4,803
2,984

Share of net assets
15,325
16,465

The Council’s and Group’s share of the joint ventures’ current year net surplus and revaluation movements included in the financial statements are shown below.

Share of Net Surplus and Revaluation Movements
2013
$000
2012
$000

Operating revenue
2,400
2,525

Operating expenditure
(3,540)
(2,772)

Share of net surplus or (deficit)
(1,140)
(247)

Share of current year revaluation movement
-
(82)

The Council’s and Group’s share of the joint ventures capital commitments is $Nil (2012: $Nil) and contingent liabilities is $Nil (2012: $Nil).

Note 40: Investment in SubsidiariesTop

The following entities are subsidiaries of Council:

Subsidiary
Interest
2013
Interest
2012
Nature of business

Positively Wellington Tourism (Partnership Wellington Trust Inc)
100%
100%
Creates economic and social benefit by marketing the city with the private sector as a visitor destination.

Wellington Waterfront Limited
100%
100%
Manages the Wellington Waterfront Project.

Wellington Cable Car Limited  
100%
100%
Owns and manages the trolley bus overhead wiring system and the Cable Car.

Wellington Museums Trust
100%
100%
Administers the Cable Car Museum, Capital E, the City Gallery, the Colonial Cottage Museum, the Carter Observatory and the Museum of Wellington City and Sea

Positively Wellington Venues (Wellington Venues Limited)
100%
100%
Manages the Wellington Venues Project.

Wellington Zoo Trust
100%
100%
Manages and guides the future direction of the Wellington Zoo.

The reporting period end date for all subsidiaries is 30 June. Full copies of their financial statements can be obtained directly from their offices. Further information on the structure, objectives, the nature and scope of activities, and the performance measures and targets of the entities can be found in the Report on Council Controlled Organisations (page 190).

The cost of the Council’s investment in subsidiaries is reflected in the Council’s financial statements as follows:

Investment in subsidiaries
2013
$000
2012
$000

Wellington Cable Car Limited
3,809
3,809

Total investment in subsidiaries
3,809
3,809

The equity investment represents the cost of the investment to the Council and includes all capital contributions made by the Council to subsidiaries. The Council has only made equity investments in Wellington Cable Car Limited. Nominal settlement amounts ($100) made in respect of Trusts, for which Council is the settlor, have not been recognised due to their materiality.

Information on inter-company transactions is included in the Note 42: Related party disclosures.

Note 41: Investment in AssociatesTop

The Council has a significant interest in the following associates:

Associate
Interest
2013
Interest
2012
Nature of business

Basin Reserve Trust  
50%
50%
Manages, operates and maintains the Basin Reserve

Capacity (Capacity Infrastructure Services Limited)
62.5%
62.5%
Jointly manages water services for Wellington and Lower Hutt cities. (Refer below for voting rights)

Chaffers Marina Holdings Limited
11.45%
11.45%
Holding company for Chaffers Marina Limited.

– Chaffers Marina Limited
100%
100%
Owns and manages the marina.

Wellington International Airport Limited
34%
34%
Owns and manages Wellington International Airport facilities and services.

Wellington Regional Stadium Trust
50%
50%
Owns and manages Westpac Stadium.

Full copies of the associates’ separately prepared financial statements can be obtained directly from their offices.

Basin Reserve Trust

The Basin Reserve Trust was established on 24 February 2005 to manage, operate and maintain the Basin Reserve and has a reporting period end date of 30 June. The Trust was jointly created with Cricket Wellington Incorporated (CWI). Wellington City Council and CWI each appoint two of the four trustees. Wellington City Council has significant influence over the Trust through the appointment of trustees, and receives benefits from the complementary activities of the Trust. On this basis the Trust is recognised as an associate of the Council in accordance with NZ IAS 28: Investments in Associates. It is therefore appropriate to recognise the interest that Wellington City ratepayers have in the Trust within the Council’s financial statements. As each party has equal power to appoint Trustees, Wellington City Council’s ownership interest in the Trust has been accounted for at 50%.

Capacity

Capacity, the trading name for Capacity Infrastructure Services Limited was jointly created with Hutt City Council on 9 July 2003 and has a reporting period ending 30 June. Wellington City Council and Hutt City Council each own Class A and Class B shares in the company.

| Wellington City Council | Hutt City Council | Shares on issue
Class A shares (voting rights) | 150 | 150 | 300
Class B shares (financial entitlements) | 188 | 112 | 300

The Class A shares represent voting rights and are split evenly between the two councils. The Class B shares confer the level of contributions and ownership benefits of each council. Wellington City Council holds 188 Class B shares, and Hutt City Council holds 112. The company is considered to be jointly controlled because of the equal sharing of voting rights conferred through the Class A shares and is therefore an associate of both Wellington City Council and Hutt City Council in accordance with NZ IAS 28: Investments in Associates. Each Council will equity account for their respective ownership interest as determined by the proportionate value of Class B shares held. Wellington City Council’s ownership interest in the company is 62.5%.

Wellington City Council, Hutt City Council and Upper Hutt City Council have agreed to move Capacity Infrastructure Services Ltd to an outcomes based business model, which is designed to allow for the better development of a coherent regional strategy on delivering future three-waters services. They have also agreed to Upper Hutt City Council joining as a shareholder of Capacity. Porirua City Council is currently considering a proposal to become a customer and shareholder of Capacity. If both Upper Hutt City Council and Porirua City Council join as shareholders, Wellington City Council’s percentage of voting shares will reduce to 25% and its percentage of income shares will reduce to 50% of the company.

The shareholding changes and shift to the outcomes based business model are anticipated to be effective from 1 October 2013.

Chaffers Marina

Chaffers Marina Holdings Limited and Chaffers Marina Limited have a reporting period end date of 30 June. The shares in Chaffers Marina Holdings Limited are held by Wellington Waterfront Limited in a fiduciary capacity. As at 30 June 2013 Council held an 11.45% interest in Chaffers Marina Holdings Limited (2012: 11.45%) which has been reflected in the Group financial statements on an equity accounting basis reflecting the special rights (as set out in Chaffers Marina Limited’s Constitution) which attach to the golden share that it holds in Chaffers Marina Limited.

Wellington International Airport Limited

Wellington International Airport Limited has a reporting period end date of 31 March. The ultimate majority owner, Infratil Limited, has determined a different end of reporting period to Council, which is legislatively required to use 30 June. The Council owns 34% of the company, with the remaining 66% owned by NZ Airports Limited (which is wholly owned by Infratil Limited).

Wellington Regional Stadium Trust

Wellington Regional Stadium Trust was jointly created with Greater Wellington Regional Council and has a reporting period end date of 30 June. Wellington City Council has significant influence over the Wellington Regional Stadium Trust through the appointment of Trustees and receives benefits from the complementary activities of the Trust. On this basis the Trust is an associate of the Council in accordance with NZ IAS 28: Investments in Associates. It is therefore appropriate to recognise the interest that Wellington City ratepayers have in the Trust within the Council’s financial statements. As each Council has equal power to appoint Trustees, Wellington City Council’s ownership interest in the Trust has been accounted for at 50%.

Summary of Financial Position and Performance of Associates

The Council’s share of the assets, liabilities, revenues and surpluses or deficits of the associates is as follows:

Associates
Assets
Liabilities
Revenues
Surplus/(Deficit)

2013
$000
2013
$000
2013
$000
2013
$000

Basin Reserve Trust
524
50
318
(100)

Capacity
1,343
1,073
4,763
45

Chaffers Marina Holdings Limited
690
143
97
(16)

Wellington International Airport Limited
276,346
130,935
36,104
11,349

Wellington Regional Stadium Trust
48,412
9,115
8,347
1,427

Associates
Assets
Liabilities
Revenues
Surplus/(Deficit)

2012
$000
2012
$000
2012
$000
2012
$000

Basin Reserve Trust
628
53
300
(69)

Capacity
1,149
925
4,873
53

Chaffers Marina Holdings Limited
688
125
99
(23)

Wellington International Airport Limited
270,192
131,388
33,819
7,289

Wellington Regional Stadium Trust
48,212
10,448
9,353
1,855

Investment in associates

The cost of the Council’s investment in associates is reflected in the Council financial statements as follows:

Investment in associates
Council

2013
$000
2012
$000

Capacity
376
376

Chaffers Marina Holdings Limited
1,368
1,368

Wellington International Airport Limited
17,775
17,775

Total investment in associates
19,519
19,519

The investment in associates in the Group financial statements represents the Council’s share of the net assets of the associate. This is reflected in the Group financial statements as follows:

Investment in associates
Group

2013
$000
2012
$000

Basin Reserve Trust

Opening balance
574
643

Equity accounted earnings of associate
(100)
(69)

Closing balance – investment in Basin Reserve Trust
474
574

Capacity

Opening balance
226
173

Equity accounted earnings of associate
45
53

Closing balance – investment in Capacity
271
226

Chaffers Marina Holdings Limited

Opening balance
1,014
1,037

Change in shares during the year
-
-

Change in equity due to changed shareholding
-
-

Equity accounted earnings of associate
(16)
(23)

Closing balance – investment in Chaffers Marina Holdings Limited
998
1,014

Wellington International Airport Limited

Opening balance
129,959
108,842

Dividends
(10,828)
(22,426)

Equity accounted earnings of associate
11,349
7,289

Share of net revaluation of property, plant and equipment – movement
-
33,437

Share of hedging reserve – movement
153
1,072

Adjustment for sale of i-site
-
1,745

Closing balance – investment in Wellington International Airport Limited
130,633
129,959

Wellington Regional Stadium Trust

Opening balance
36,651
34,796

Equity accounted earnings of associate
1,427
1,855

Closing balance – investment in Wellington Regional Stadium Trust
38,078
36,651

Total investment in associates
170,453
168,424

The Council’s share of the results of the Basin Reserve Trust, Capacity, Chaffers Marina Holdings Limited, Wellington International Airport Limited and the Wellington Regional Stadium Trust is as follows:

Share of associates' surplus/(deficit)
Group

2013
$000
2012
$000

Basin Reserve Trust

Share of net surplus/(deficit) before tax
(100)
(69)

Tax (expense)/credit
-
-

Share of associate's surplus/(deficit) – Basin Reserve Trust
(100)
(69)

Capacity

Share of net surplus/(deficit before tax)
45
53

Tax (expense)/credit
-
-

Share of associate's surplus/(deficit) – Capacity
45
53

Chaffers Marina Holdings Limited

Share of net surplus/(deficit) before tax
(16)
(23)

Tax (expense)/credit
-
-

Share of associate's surplus/(deficit) – Chaffers Marina Holdings Limited
(16)
(23)

Wellington International Airport Limited

Share of net surplus before tax
11,671
5,985

Tax (expense)/credit
(322)
1,304

Share of associate's surplus/(deficit) – Wellington International Airport Limited
11,349
7,289

Wellington Regional Stadium Trust

Share of net surplus before tax
1,427
1,855

Tax (expense)/credit
-
-

Share of associate's surplus – Wellington Regional Stadium Trust
1,427
1,855

Total share of associates' surplus/(deficit)
12,705
9,105

Note 42 : Related party disclosuresTop

Identity of related parties

In this section, the Council discloses the remuneration and related party transactions of key management personnel, which comprises the Directors (the Mayor and Councillors), the Chief Executive and all members of the Council’s Executive Leadership Team. All members of the Group are also considered to be related parties of Wellington City Council, including its joint ventures, subsidiaries and associates.

Key management personnel

Council
Group

NOTE
2013
$
2012
$
2013
$
2012
$

Council members (Directors)

Short-term employee benefits
43
1,362,501
1,358,825
1,529,492
1,523,919

Chief Executive and Executive Leadership team

Short-term employee benefits

2,324,002
2,627,432
2,324,002
2,627,432

Post employment benefits

22,148
17,791
22,148
17,791

Total remuneration paid to key management

3,708,651
4,004,048
3,875,642
4,169,142

For further disclosure of the remuneration payable to the Mayor, Councillors and the Chief Executive refer to Note 43: Remuneration and staffing.

Material related party transactions – key management personnel

During the year key management personnel, as part of normal local authority relationships, were involved in transactions of a minor and routine nature with the Council on normal commercial terms (such as payment of rates and purchases of rubbish bags).

Except for these transactions no key management personnel have entered into related party transactions with the Group.

The Mayor and Councillors disclose their personal interests in a register available on the Council Website.

There are no commitments from the Council to key management personnel.

Material related party transactions – other organisations

– NZ Local Government Funding Agency Limited (LGFA)

The LGFA was incorporated on 1 December 2011 and was established to facilitate the efficient, and cost effective, raising of debt funding for local government authorities. There are currently 30 regional, district and city councils throughout New Zealand that own 80% of the issued capital, with the Government holding the remaining 20%. The Council became an establishment shareholder in this Council Controlled Trading Organisation (CCTO) and currently has an investment of $1.883m representing 8% of paid-up capital.

– Karori Wildlife Sanctuary Trust (Zealandia)

The Council has influence in the governance, funding and operations of the Karori Wildlife Sanctuary Trust (trading as Zealandia) which is not part of the Group, to the extent that it is considered appropriate to disclose the nature of the transactions as being between related parties.

The Council appoints two of the five trustees including the Chair. Operational funding of $0.350m was made during the year to 30 June 2013. The Council has a concessionary loan totalling $10.347m on interest free terms to the Trust. Further information on the loan is included in Note 13: Other financial assets.

Intra group transactions and balances

During the year the Council has entered into several transactions with its joint venture partner Porirua City Council. The nature of these intra-group transactions and the outstanding balances at the year-end are as follows:

Intra group transactions and balances – Joint ventures
2013
$000
2012
$000

Expenditure incurred by the Council to fund the operation and management of:

Porirua – waste water treatment plant
1,792
1,537

During the year the Council has entered into several transactions with its subsidiaries. The nature of these intra-group transactions and the outstanding balances at the year-end are as follows:

Intra group transactions and balances – Subsidiaries
2013
$000
2012
$000

Dividend received from:

Wellington Cable Car Limited
94
10

Revenue for services provided by the Council to:

Positively Wellington Tourism
125
160

Positively Wellington Waterfront
2
2

Wellington Cable Car Limited
68
63

Wellington Museums Trust
1,970
2,377

Wellington Zoo Trust
608
524

2,773
3,126

Expenditure incurred by the Council to fund operations and management of:

Positively Wellington Tourism
6,390
5,940

Positively Wellington Waterfront
1,075
1,075

Wellington Museums Trust
8,010
8,010

Wellington Zoo Trust
2,799
2,799

18,274
17,824

Expenditure for services provided to the Council by:

Positively Wellington Tourism
168
128

Wellington Cable Car Limited
323
195

Wellington Museums Trust
313
230

Wellington Venues Limited
5,386
5,428

Wellington Zoo Trust
1,280
1,112

7,470
7,093

Current receivables owing to the Council from:

Positively Wellington Waterfront
-
1

Wellington Cable Car Limited
2
1

Wellington Museums Trust
30
598

Wellington Zoo Trust
639
489

671
1,089

Current payables owed by the Council to:

Positively Wellington Tourism
15
-

Wellington Cable Car Limited
-
193

Wellington Museums Trust
15
172

Wellington Venues Limited
492
362

Wellington Zoo Trust
458
617

980
1,344

Current receivables and payables

The receivables and payables balances are non-interest bearing and are to be settled with the relevant entities on normal trading terms and conditions.

During the year the Council has entered into several transactions with its associates. The nature of these intra-group transactions and the understanding balances at the year-end are as follows:

Intra group transactions and balances – Associates
2013
$000
2012
$000

Dividend received from:

Wellington International Airport Limited
10,828
22,426

Revenue for services provided by the Council to:

Basin Reserve Trust
71
79

Capacity
34
34

Wellington International Airport Limited
1
3

Wellington Regional Stadium Trust
276
228

382
344

Expenditure incurred by the Council to fund the operation and management of:

Basin Reserve Trust
355
180

Wellington International Airport Limited ¹
1,000
-

1,355
180

Expenditure for services provided to the Council from:

Basin Reserve Trust
-
7

Capacity
11,370
8,190

Wellington International Airport Limited
108
35

Wellington Regional Stadium Trust
297
252

11,775
8,484

Current receivables owing to the Council from:

Basin Reserve Trust
2
14

Capacity
3
3

Wellington Regional Stadium Trust
8
8

13
25

Current payables owed by the Council to:

Capacity
605
605

Wellington International Airport Limited
35
-

Wellington Regional Stadium Trust
72
72

712
677

Limited–recourse funding loan and advance

Wellington Regional Stadium Trust – nominal value – $15,394,893
1,407
1,248

Current receivables and payables:

The receivables and payables balances are non-interest bearing and are to be settled with the relevant entities on normal trading terms and conditions.

Limited-recourse funding loan and advance

The $15m loan to the Wellington Regional Stadium Trust (WRST) is unsecured, with no specified maturity and at no interest. The loan is not repayable until all other debts are extinguished.

On maturity of the WRST membership underwrite, the unpaid interest was converted to a $0.395m advance repayable after all other advances made by the Council and Greater Wellington Regional Council.

This grant to Wellington International Airport Limited relates to the agreement to fund 50% (capped at $1m) of the resource consent costs arising from the airport runway extension.

Note 43: Remuneration and staffingTop

Mayoral and Councillor remuneration

Remuneration is any money, consideration or benefit received, receivable or otherwise made available, directly or indirectly, to the Mayor or a Councillor during the reporting period. The Mayor and Councillors are considered directors as they occupy the position of a member of the governing body of the Council reporting entity. The disclosures for the Group include the remuneration of the Mayor and the appropriate Councillors in their role as trustees or directors of entities within the Group.

The following people held office as, either or both, elected members of the Council’s governing body, and trustees or directors of entities comprising the Group during the reporting period. The total remuneration attributed to the Mayor and Councillors during the year from 1 July 2012 to 30 June 2013 was $1,529,492 (2012: $1,523,919) and is disaggregated and classified as follows:

Council Member
Monetary Remuneration
Non Monetary Remuneration
Total Council Remuneration 2013
Director/Trustee Fees
Total Remuneration 2013

Salary

$
Resource
Consent Hearing
Fees
$
Allowances

$

$

$

$

$

Ahipene-Mercer, Ray
80,300
-
360
3,000
83,660
15,000
98,660

Best, Ngaire
80,300
-
360
3,000
83,660
15,000
98,660

Cook, Stephanie
85,220
-
360
3,000
88,580
-
88,580

Coughlan, Jo
80,300
-
360
3,000
83,660
15,000
98,660

Eagle, Paul
80,300
-
360
3,000
83,660
15,000
98,660

Foster, Andy
90,325
2,200
360
3,000
95,885
15,000
110,885

Gill, Leonie
85,220
-
-
3,000
88,220
-
88,220

Lester, Justin
80,300
-
360
3,000
83,660
15,000
98,660

McKinnon, Ian
97,430
-
360
3,000
100,790
43,991
144,781

Marsh, Simon
65,926
-
360
3,000
69,286
15,000
84,286

Morrison, John
80,300
-
360
3,000
83,660
18,000
101,660

Pannett, Iona
80,300
2,200
360
3,000
85,860
-
85,860

Pepperell, Bryan
80,300
-
360
3,000
83,660
-
83,660

Ritchie, Helene
80,300
-
360
3,000
83,660
-
83,660

Wade-Brown, Celia
161,600
-
-
3,000
164,600
-
164,600

Totals
1,308,421
4,400
4,680
45,000
1,362,501
166,991
1,529,492

Total monetary remuneration
1,317,501
166,991
1,484,492

Total non- monetary remuneration
45,000
-
45,000

Salary

The Remuneration Authority is responsible for setting the remuneration levels for elected members (Clause 6, Schedule 7 of the Local Government Act 2002). The Council’s monetary remuneration (salary) detailed above was determined by the Remuneration Authority. As permitted under the Authority’s guidelines the Council has chosen for its elected members to receive an annual salary for the 2012/13 financial year rather than the alternative option of a combination of meeting fee payments and annual salary.

Resource consent hearings payments

The determination issued by the Remuneration Authority also provides for the payment of hearing fees for those Councillors who sit as members of the Hearings Committee for hearings of resource consent applications lodged under the Resource Management Act 1991. The fees for members, who act in this capacity, are paid at the rate of $100 per hour for the Chair and $80 per hour for other members.

Taxable and non-taxable allowances – mileage, broadband services and mobile phones

Councillors are entitled to claim an allowance for mileage for which the rates are set by the Remuneration Authority. However, from December 2008, Councillors voluntarily decided to forgo receiving this allowance.

Councillors are able to choose either of the following two options:

the payment of a communication allowance of $30 per month; or

the reimbursement of any Council related communication costs, over and above any communication costs they would normally incur, payable on receipt of the appropriate documentation required under the provisions of the Remuneration Authority’s determination.

Both the allowance and reimbursement options are non-taxable. Only the payments under the allowance option have been included as remuneration in the schedule above.

The level of all allowances payable to the Council’s elected members has been approved by the Remuneration Authority and is reviewed by the Authority on an annual basis.

Non-monetary

In addition, the Mayor and Councillors receive non-monetary remuneration in relation to car parking space provided. The Councillors have shared office and working space available for use, and access to phones and computers. Professional indemnity and trustee liability insurance is also provided to Councillors against any potential legal litigation which may occur while undertaking Council business.

Director/trustee fees

The above director/trustee remuneration was paid to the following Council members in their capacity as Council appointees to the following organisations:

Council Member
Position
Director / Trustee Fees
Organisation
Council
Interest
%

Subsidiaries
$
Associates
$

Ahipene-Mercer, Ray
Trustee
15,000
-
Wellington Museums Trust
100.0

Best, Ngaire
Director
15,000
-
Positively Wellington Venues
100.0

Coughlan, Jo
Trustee
15,000
-
Positively Wellington Tourism
100.0

Eagle, Paul
Director
15,000
-
Positively Wellington Venues
100.0

Foster, Andy
Director
-
15,000
Capacity
62.5

Lester, Justin
Director
15,000
-
Wellington Waterfront Limited
100.0

McKinnon, Ian
Director
-
43,991
Wellington International Airport Limited
34.0

Marsh, Simon
Trustee
15,000
-
Wellington Zoo Trust
100.0

Morrison, John
Trustee
-
18,000
Wellington Regional Stadium Trust
50.0

Total director and
trustee fees

90,000
76,991

Community Boards

The Council has two community boards – the Tawa Community Board and the Makara/Ohariu Community Board. Remuneration paid to the elected members of these boards is as follows:

Community Board Member
Salary
Allowances
Total
2013

$
$
$

TAWA COMMUNITY BOARD

Sparrow, Malcolm (Chair)
21,165
540
21,705

Hansen, Graeme (Deputy Chair)
8,465
-
8,465

Lucas, Margaret
8,465
-
8,465

Reading, Chris
8,465
-
8,465

Sutton, Alistair
8,465
-
8,465

Tredger, Robert
8,465
-
8,465

MAKARA-OHARIU COMMUNITY BOARD

Grace, Christine (Chair)
13,550
540
14,090

Bruce, Gavin (Deputy Chair)
5,295
-
5,295

Liddell, Judy
5,295
-
5,295

Rudd, Wayne
5,295
-
5,295

Scotts, Margie
5,295
-
5,295

Todd, Hamish
5,295
-
5,295

Totals
103,515
1,080
104,595

A technology allowance of $45 per month is available to the chair of both the Tawa and Makara/Ohariu Community Boards. This allowance can be taken as either an allowance or as an actual expense reimbursement. Both options are non-taxable but only payments under the allowance option are included in the above remuneration table.

Chief Executive’s remuneration

The Chief Executive of the Council was appointed in accordance with section 42 of the Local Government Act 2002.

The table below shows the total remuneration of the Chief Executive paid or payable for the year ended 30 June 2013.

Under the terms of his agreement, the Chief Executive of the Council chooses how he wishes to take his remuneration package (salary only or a combination of salary and benefits).

Remuneration of the Chief Executive
Council

2013
$
2012
$

Short-term employee benefits

Garry Poole (1 July 2012 – 12 April 2013)

Salary¹
327,345
398,432

Motor vehicle and car park (including FBT)
-
25,025

Other remuneration:

– accrued leave entitlement for the tenure of employment (1998 – 2013)
123,027

– contractual payment due at expiry of fixed term employment agreement
that commenced on 2 March 2008
104,520

Total remuneration paid or payable
554,892
423,4572

Kevin Lavery (31 March – 30 June 2013)

Salary³
99,726
-

Total remuneration paid or payable
99,726
-

Garry Poole was on a fixed term individual employment agreement with total remuneration of $419,231.

The total paid in 2012 is higher than the Chief Executive’s total annual remuneration (refer footnote 1) because some of the payment relates to the 2011 year (as following the September 2012 remuneration review process, the adjustment to remuneration was backdated to 2 March 2012).

Kevin Lavery is on a fixed term individual employment agreement with total remuneration of $400,000.

Severances

In accordance with Schedule 10, section 19 of the Local Government Act 2002, the Council is required to disclose the number of employees who received severance payments during the year and the amount of each severance payment made.

Severance payments include any consideration (monetary and non-monetary) provided to any employee in respect of the employee’s agreement to the termination of their employment with the Council. Severance payments exclude any final payment of salary, holiday pay and superannuation contributions.

For the year ending 30 June 2013 the Council made severance payments to 12 employees (2012:12) totalling $240,830 (2012: $110,628).

The individual values of each of these severance payments are: $2,500; $13,463; $3,000; $20,013; $22,133; $35,000; $42,747; $35,000; $35,000, $16,275; $13,699; $2,000.

Staffing levels and remuneration bands

The following table identifies the number of full-time employees as at the end of the reporting period and the full-time equivalent number of all other part-time, fixed term and casual employees. The table further identifies the breakdown of remuneration levels of those employees into various bands.

| Council
| 2013 | 2012
The number of full-time employees as at 30 June | 910 | 1020
The full-time equivalent number of all other non full-time employees | 216 | 209
The number of employees receiving total annual remuneration of less than $60,000 | 1033 | 1126
The number of employees receiving total annual remuneration of more than $60,000 in bands of $20,000 |  |
$60,000–$79,999 | 251 | 278
$80,000–$99,999 | 123 | 137
$100,000–$119,999 | 75 | 73
$120,000–$139,999 | 36 | 39
$140,000–$159,999 | 15 | 12
$160,000–$179,999 | 9 | 7
$180,000–$219,999* | 9 | 6
$220,000–$279,999* | 7 | 8
$280,000–$419,999* | 4 | 2

A full-time employee or full-time equivalent is based on a 40-hour week.

Total annual remuneration has been calculated to include any non-financial benefits and other payments in excess of normal remuneration such as the employer KiwiSaver contribution.

* If the number of employees for any band was five or less then it has been combined with the next highest band.

Note 44: Events after the end of the reporting periodTop

There are no events after the end of the reporting period that require adjustment to the financial statements or the notes to the financial statements.

There were two large earthquakes situated near Wellington on 21July and 16 August 2013 which caused damage to some commercial and residential buildings in the Wellington area. The Council has performed engineering assessments on Council-owned buildings affected by the earthquake and discovered no structural damage. Repair to cosmetic damage and clean-up costs are expected to be minimal and largely covered by the self-insurance reserve fund.

26 The Council’s share of the joint venture with Porirua City Council relating to the Spicer Valley Landfill is included in this asset class.

27 Other net variances relate to other reduced costs in programmes, projects and organisational costs.

28 Actual capital expenditure consists of all expenditure 2012/13 including expenditure against carry forwards.

29 Proposed budget carry forwards represent the portion of the project budget to be carried forward to future financial years.

30 Budgets comprise 2012/13 Annual Plan budgets brought forward into 2012/13 from the previous financial period.

Appendices

Report on Council-Controlled Organisations

Monitoring information

Our environmental impact

Independent auditor's report

Report on Council-Controlled Organisations

Wellington Regional Stadium Trust

Partnership Wellington Trust (trading as Positively Wellington Tourism)

Wellington Museums Trust

Wellington Venues Limited (trading as Positively Wellington Venues)

Lambton Harbour Management Limited (trading as Wellington Waterfront Limited)

Wellington Cable Car Limited

Capacity Infrastructure Services Limited

Wellington Zoo Trust

Basin Reserve Trust

In order to achieve our objectives for Wellington, we have established several companies and trusts. These organisations were set up to independently manage Council facilities, or to deliver significant services and undertake development on behalf of the Wellington community. Where necessary, we provide funding to support their operations and capital investment requirements.

The following pages explain what the organisations do, how their performance is measured, and how they performed during 2012/13.

Wellington Regional Stadium Trust

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2012/13
ACTUAL 2012/13

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

As at 30 June 2013, they are John Shewan (Chair), Councillor Chris Laidlaw (GWRC), Sir John Anderson, Liz Dawson, Sue Elliott, Mark McGuinness and Councillor John Morrison (WCC).

David Gray retired as Chief Executive on 30 June 2013 and Shane Harmon is the new Chief Executive from July 2013.
The Wellington Regional Stadium Trust owns, operates and maintains the Stadium as a high quality multi purpose sporting and cultural venue. It provides facilities to be used for rugby, cricket and other sports codes, musical and cultural events, and other users including sponsors and event and fixture organisers.  
The Trust:

operates the Stadium 

manages the event programme and seeks opportunities to provide regular quality events 

ensures the Stadium is provided to the community for appropriate usage 

administers the Trust assets and the Stadium on a prudent commercial basis.

Number of events
47
52

Total revenue
$15.13 million
$16.70 million*

Event revenue
$4.69 million
$6.10 million*

Net surplus
$2.32 million
$3.06 million*

Note: the Wellington Regional Stadium Trust is not formally defined as a Council-Controlled Organisation. This report on their activities is presented to recognise the interest that Wellington City ratepayers have in the Trust and its activities.

* Subject to final audit and trustee approval.

Partnership Wellington Trust (trading as Positively Wellington Tourism)Top

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2012/13
ACTUAL 2012/13

All trustees are appointed by the Council.  

As at 30 June 2013, they are Mike O’Donnell (Chair), Ed Sims, Sarah Gibbs, Councillor Jo Coughlan, Howard Greive and Chris Wilkinson.

The Chief Executive is David Perks.    
The Partnership Wellington Trust markets and adds value to Wellington to achieve sustainable economic growth for the people of the city.  

It acts to enhance the recognition of Wellington as a desirable visitor destination, enhance the profile of city businesses and to promote strategic alliances and private sector partnerships, and maximise the city’s share of regional spending.  

It also promotes community focused initiatives, aims to improve the sustainability of Wellington’s commercial sector through its marketing initiatives, and facilitates the coordination of marketing initiatives that are appropriate to its objectives.
The Trust:

promotes Wellington as a visitor destination in national and international markets

markets Wellington as a convention and conference destination 

provides visitor information services

runs initiatives that promote retail growth, including the downtown retail campaign

profiles Wellington’s strengths in arts, sport and education attractions, and conducts development of an ongoing events profile for the city

facilitates the development of new tourism and event product, and the development of the Visiting Friends and Relatives (VFR) market

manages Wellington’s destination profile on the internet

conducts research and analysis of the tourism industry.

International direct arrivals to Wellington Airport from Australia
Increase Australian visitor arrivals by 7% over 2011/12 levels
-0.67%

International visitor nights
Maintain international visitor room nights relative to 2011/12 level
-13.34%31

New Zealand visitor nights
Domestic visitor nights increased by 2% relative to 2011/12 levels
+7.05%32

Weekend occupancy in partner hotels (capacity aligned)
Increased by 2% relative to 2011/12 levels
+1.0%

Downtown weekend visitation 
Maintained at 2011/12 levels
-0.85%

i-SITE revenue
Maintained at 2011/12 levels
-1.9%33

Cost effectiveness
Maintain Council’s funding at 50% or less of Wellington’s marketing activity investment
48.7%

Visits to WellingtonNZ.com
10% increase over 2011/12 levels
+25%

Online revenue
Generate $680k of bookings through the site
$569k34

Wellington Museums TrustTop

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2012/13
ACTUAL 2012/13

All trustees are appointed by the Council.  

As at 30 June 2013, they are Quentin Hay (Chair), Councillor Ahipene-Mercer, Philip Shewell, Jackie Lloyd and Alick Shaw. The Chief Executive is Pat Stuart.  
The Wellington Museums Trust (WMT) was established in 1995 to promote and manage the City Gallery Wellington, the Museum of Wellington City & Sea, the Colonial Cottage, Capital E, the Wellington Cable Car Museum, the New Zealand Cricket Museum and the Carter Observatory. The Trust has a management agreement with the New Zealand Cricket Museum.

It manages and develops the Trust programmes and services, and acquires and manages collections for the benefit of Wellington. It provides advice to the Council for the development of museum and gallery services in Wellington, establishes exhibition programmes and education policies for its facilities, and develops acquisition, deaccession and collection development policies. It liaises with Positively Wellington Tourism to enhance its attraction to Wellington’s visitors.  
The Trust:

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

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

offers quality education experiences to children and young people

promotes and protects the heritage of venues 

develops and operates the Soundhouse Studio 

works with national and international artists and collectors.

Attendance targets:

City Gallery
143,000
161,681

Capital E
102,000
100,32935

Museum of Wellington
93,800
98,605

Colonial Cottage
2,100
1,825

Cable Car Museum
227,000
235,866

NZ Cricket Museum
2,100
1,895

Carter Observatory
50,000
48,820

Subsidy per customer (excludes Plimmer's Ark, but includes rental subsidy)
$13.04
$12.44

Carter Observatory subsidy per customer
$7.78
$6.15

Percentage of visitors to all Trust institutions who rate the quality of their experience as good or very good
90% on average
94%

Percentage of visitors to all Trust institutions are repeat visitors
27%
48%

Percentage of all residents are aware of Trust institutions
Approximately 88% (across all institutions)
86%

Wellington Venues Limited (trading as Positively Wellington Venues)Top

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2012/13
ACTUAL 2012/13

All trustees are appointed by the Council.  

As at 30 June 2013, they are Chris Parkin (Chair), Councillor Ngaire Best, Councillor Paul Eagle, Mike Egan, Samantha Sharif, Lorraine Witten, Linda Rieper and Daniel Bridges. The Chief Executive is Glenys Coughlan.  
Wellington Venues Limited exists to manage and promote Wellington’s major events venues, including the Michael Fowler Centre, Town Hall, St James Theatre and Opera House as venues, and to help establish Wellington as the premier city for events and conferences.    
Wellington Venues Ltd:

manages and operates Venues and any related events business  

advocates for the venue and event sector for the benefit of the residents of Wellington  

works to achieve greater community access to the venues’ facilities  

develops and maintains beneficial relationships with other national and international institutions, supports Positively Wellington Tourism, and develops new initiatives in its role as a key provider of event and performance venues.

Venue hire days

103236
953

Performance days and revenues
655
600; revenue targets met

Convention and events days and revenues
377
352; revenue targets met

Maintain appropriate mix of commercial and community hires
Maintain appropriate mix of commercial and community hires
Achieved

Pan-venue asset management
Pan-venue asset management
Achieved

Reduced environmental footprint targets
Reduced environmental footprint targets
Ongoing

Joint marketing with PWT and other partners
Continuing joint marketing with PWT and other partners such as a joint Australian marketing initiative with PWT aimed at the Wellington conference and events market
Ongoing

Contingency plan for seismic strengthening of Town Hall
Contingency plan for seismic strengthening of Town Hall
Achieved

Lambton Harbour Management Limited (trading as Wellington Waterfront Limited)Top

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2012/13
ACTUAL 2012/13

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

As at 30 June 2013, they are Robert Gray (Chair), Councillor Justin Lester, Derek McCorkindale and
Jane Black. The Chief Executive is Ian Pike.  
Wellington Waterfront Limited acts as the implementation manager for the waterfront development area. This means ensuring that the waterfront area is recognised locally and internationally for its design; is attractive; caters for a wide range of activities; is readily accessible to all people; and is both safe and perceived to be safe. Wellington Waterfront Limited also acts to protect significant heritage buildings on the waterfront, and makes sure that activities on the waterfront are integrated with those on the harbour.  
The company:

implements the objectives of the Waterfront Framework as outlined in the Waterfront development Plan 

demonstrates willingness to engage with the public about how the waterfront is developed  

manages day-to-day operations on the waterfront, including cleaning, security and maintenance 

negotiates and manages contracts for the design and construction of the waterfront’s public spaces 

negotiates and manages contracts and leases for all building development sites, and the refurbishment and re-use of existing buildings 

owns and manages the marina.  

Percentage of residents visiting the waterfront
95%
99%

Percentage of residents satisfied with the waterfront
90%
99%

Number of project milestones achieved on time
Number of project milestones achieved on time:

Complete
wharf pile refurbishment of Queens Wharf
Achieved

Complete the urban design proposal for OPT public space and achieve TAG sign-off
Ongoing

Progress the development of Site 10 and complete stage 2 of Kumutoto development
Ongoing

Deliver the proposed diving platform within the Circa cut-out space (Q2)
Achieved

Have approved the long-term development proposal for Shed 1 (Q4)
Project Deferred37

Successfully complete the marketing and sale of the Shed 5 long-term lease (Q2)
Achieved

Meet the contractual milestones in the MOU with Te Papa for the Transition Building, Waitangi Park (Q4)
Ongoing

Wellington Cable Car LimitedTop

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2012/13
ACTUAL 2012/13

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

As at 30 June 2013, they are Roger Drummond (Chair), Nicki Crauford, and Anthony Briscoe. The Chief Executive is Des Laughton.  
Wellington Cable Car Limited owns and operates the Cable Car as an efficient, reliable and safe transport service and a uniquely Wellington tourism asset.   It also owns and maintains the overhead wiring system for the trolley bus passenger network which services the city.  
The company:

maintains the cable cars and associated track, plant, tunnels, bridges and buildings in accordance with best engineering practice, and to meet the certification requirements of the NZTA 

manages the cable car passenger service operation 

markets the cable car 

identifies options for enhancing the cable car travel and tourism experience 

specifies and controls the contract for the inspection, maintenance and repair of the trolley bus overhead wiring system.

Cable car passenger numbers
1,073,000
1,060,458

All cable car vehicles and associated buildings and equipment are maintained to required safety standards
Achieved
Achieved

Cable car service reliability
Greater than 99%
99.8%

Percentage of residents who have used the cable car in the last 12 months
30%
46%

Percentage of users who rate the standard and operational reliability of the cable car as good or very good
95%
94%

Capacity Infrastructure Services LimitedTop

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2012/13
ACTUAL 2012/13

Wellington City Council and Hutt City Council are equal 50% shareholders in this Council-Controlled Trading Organisation, and between them appoint all of the directors. The company is overseen by a board of directors made up of two Councillors (one from each council) and four independent directors (two are appointed jointly by the councils). Each council continues to own its respective water, stormwater and wastewater assets and determines the level and standard of services to be provided to its customers and ratepayers.  

As at 30 June 2013, the Councillor appointees are Andy Foster (Wellington City Council) and David Bassett (Hutt City Council). The four independent directors are Peter Allport (Chair), Peter Leslie, Ian Hutchings and John Strahl. The Chief Executive is
David Hill.  

Wellington City Council, Hutt City Council and Upper Hutt City Council have agreed to move Capacity Infrastructure Services Ltd to an outcomes based business model, which is designed to allow for the better development of a coherent regional strategy on delivering future three-waters services. They have also agreed to Upper Hutt City Council joining as a shareholder of Capacity. Porirua City Council is currently considering a proposal to become a customer and shareholder of Capacity. If both Upper Hutt City Council and Porirua City Council join as shareholders, Wellington City Council’s percentage of voting shares will reduce to 25%.  

The shareholding changes and shift to the outcomes focused operating model are anticipated to be effective from 1 October 2013.
The objective of Capacity is to manage the provision of water services (water supply, stormwater and wastewater) to the residents and businesses in the areas served by its customers. Capacity’s current customers are Wellington City Council, Hutt City Council and Upper Hutt City Council.  

The company’s purpose is to provide high-quality, safe and environmentally sustainable services to shareholding councils and other customers with a principal focus on asset management planning and contracted service delivery for the operation, maintenance and ongoing development of drinking water, stormwater and wastewater assets and services.  

The company is committed to ensuring all work managed on behalf of customers accords with the highest standards of health and safety for those involved in the work and for the general public. The company will continually seek opportunities to integrate water, stormwater and wastewater activities within the Wellington region where such integration can deliver least cost, best practice outcomes to the benefit of shareholder councils and other entities.

See also the Environment strategic area for more information on water, stormwater and wastewater services.

Provide a reliable water supply, wastewater and stormwater service.
Fewer than four unplanned supply cuts (pipe bursts) per 1000 connections
Achieved (1.3 unplanned supply cuts per 1000 connections)

Develop and complete asset management plans
Within agreed timeframe
Achieved (within agreed timeframe)

Deliver budgeted capital expenditure projects for respective councils
Within agreed timeframes and budget
Achieved (within agreed timeframes and budget)

Deliver budgeted operating and maintenance activities for respective councils
Within agreed timeframes and budget
Achieved (within agreed timeframes and budget)

Manage and operate Capacity within its budget
Within agreed budget
Achieved (within agreed budget)

Comply with relevant standards, legislation and resource consents
Achieve full compliance
Achieved full compliance38

Wellington Zoo TrustTop

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2012/13
ACTUAL 2012/13

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

As at 30 June 2013, they are Ross Martin (Chair), Frances Russell, Linda Meade, Alan Dixson, and Councillor Simon Marsh.
The Wellington Zoo Trust manages the assets and operations of Wellington Zoo for the benefit of the residents of Wellington and visitors to the city. It promotes species conservation, educates the community by building an awareness of plant and animal species, and supports the conservation and educational activities of other organisations.

Cares for resident animals and manages the animal collection.

Provides a high-quality visitor experience

Participates in captive management breeding and breed-for-release programmes.

Develops and maintains high quality animal exhibits.

Delivers educational material and learning experiences.

Contributes to zoological, conservation and facilities management research projects.

Number of visitors

206,703
232,130

Conservation Programme Managed Species (% of total collection)

41%
39.8%

Average Council subsidy per visitor

$13.54
$12.06

Annual fundraising target for Zoo Capital Plan

$468,693td>
$406,538

Average income per visitor (excluding Council grant)

$14.88
$13.81

Ratio of generated Trust income as % of Council grant

110%
115%

Basin Reserve TrustTop

STRUCTURE
OBJECTIVES
ACTIVITIES
PERFORMANCE MEASURES
TARGET 2012/13
ACTUAL 2012/13

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

As at 30 June 2013, the two trustees appointed by the Council are Councillor John Morrison and Sir John Anderson. The two trustees appointed by Cricket Wellington are Don Neely and Douglas Catley (Chair). The Chief Executive of Cricket Wellington is Peter Clinton.
The Basin Reserve Trust manages and operates the Basin Reserve to continue to attract national and international sporting events to Wellington.
The Trust:

manages the Basin Reserve for recreational activities and the playing of cricket for the residents of Wellington

contributes to the events programme for Wellington

operates as a successful not-for profit undertaking

preserves and enhances the heritage value of the Basin Reserve.

Number of events:

cricket
15
20

other sports
6
1

community
2
1

Number of
event days:

cricket
34
32

other sports
6
1

community
2
1

Attendance figures
34,800
32,878

31 The 2011/12 figures are still impacted by the 2011 Rugby World Cup.

32 This increase is due to a strong domestic marketing campaign and events schedule.

33 The slight drop in i-SITE revenue reflects the drop in international nights/numbers to Wellington, but additional revenue sources from snapper and dash tickets has helped offset this.

34 Whilst Wellingtonnz.com was the first online booking channel available in New Zealand, there are now larger global channels in the online market.

35 Capital E, Carter Observatory and the Colonial Cottage were all affected by building issues, the most significant being the Capital E building which was assessed as earthquake prone in November 2012.

36 This is calculated as the total number of hires at the venue, as opposed to actual days, as venues can be hired for multiple events within one day.

37  While planning continued through the year on specific projects within the Queens Wharf precinct, it was determined that a viable development proposal for Shed 1 was not achievable at this time in the current economic climate.

38 Compliance report from GWRC not due until later in 2013.

Monitoring information

Governance outcome indicators

Environment outcome indicators

Economic development outcome indicators

Cultural wellbeing outcome indicators

Social and recreation outcome indicators

Urban development outcome indicators

Transport outcome indicators

The following indicators have been developed to assess achievement of our Council outcomes that were set as part of the 2012-22 Long–term Plan.

The Council’s outcomes are our aspirations for the city and our communities. They are aimed at promoting Wellington’s social, economic, environmental, and cultural wellbeing now and in the future.

The Council outcomes reflect areas of the city we are able to influence, whereas community outcomes reflect the community’s overall aspirations including areas we have limited ability to influence (for example, affordability of housing). Over time we expect to see improvement across all areas. The information provided below is a complete record of the ‘outcomes indicators’ section under each strategy area.

We use some acronyms:

GIS: Geographic Information Systems

PWT: Positively Wellington Tourism

NZTA: New Zealand Transport Agency

TEC: Tertiary Education Commission.

Governance outcome indicators

COUNCIL OUTCOME INDICATOR | SOURCE | DATA
Residents who agree that decisions are made in the best interests of the city | WCC Residents’ Monitoring Survey | (2008/09, 2009/10, 2010/11, 2011/12, 2012/13) 59%, 61%, 60%, 55%, 31%
Residents who state that they understand how the Council makes decisions | WCC Residents’ Monitoring Survey | (2006/07, 2007/08, 2008/09, 2009/10, 2010/11, 2011/12, 2012/13) 43%, 40%, 45%, 51%, 48%, 42%, 27%
Residents who believe they have an influence on Council decision-making | WCC Residents’ Monitoring Survey | (2008/09, 2009/10, 2010/11, 2011/12, 2012/13) Large and Some Influence: 64%, 65%, 61%, 60%, 41%
Mana whenua partner agreement that the use and protection of the city's resources for the future is appropriate | WCC Research, Consultation and Planning | Both partners agree that Council is making appropriate decisions regarding the use and protection of the city’s resources.
Residents who beleive they have the opportunity to participate in city life | WCC Residents’ Monitoring Survey | (2013) Agree and strongly agree: 67%
Voter turnout in local elections | N/A | N/A

Environment outcome indicatorsTop

COUNCIL OUTCOME INDICATOR
SOURCE
DATA

Hectares of open space land owned or maintained by the Council, per capita39
WCC Parks and Gardens
2006/07: 188.3 m2/person (3,535 hec); 2007/08: 185.5 m2/person (3,535 hec); 2008/09: 183.3 m2/person (3,535 hec); 2009/10: 208.6m2/person (4,078 hec); 2010/11: 206.7m2/person (4,086 hec); 2011/12: 210.9m2/person (4,221 hec); 2012/13: 202.1m2/person (4,086 hec).

Residents’ usage of the city’s open spaces
WCC Residents’ Monitoring Survey
(2007/08, 2008/09, 2009/10, 2010/11, 2011/12, 2012/13) Most days = 6%, 5%, 3%, 4%, 4%, 4%; Once or twice a week = 14%, 13%, 13%,14%, 12%, 11%; Once every 2–3 weeks = 10%, 11%, 11%,11%, 12%, 13%; Once a month = 11%, 14%, 11%, 12%, 12%, 13%; Once every 2–3 months = 12%, 13%, 13%, 13%, 12%, 15%; Once every 4–5 months = 6%, 6%, 6%, 5%, 5%, 10%; Once every 6 months or less often = 13%, 13%, 13%, 14%, 15%, 14%; Never in the last 12 months = 29%, 24%, 31%, 29%, 29%, 21%

Residents’ perceptions that the natural environment is appropriately managed and protected
WCC Residents’ Monitoring Survey
(2006/07, 2007/08, 2008/09, 2009/10, 2010/11, 2011/12, 2012/13) 79%, 75%, 82%, 84%, 89%, 87%, 80%.

Kilometres of managed tracks and walkways
WCC Parks and Gardens
2006/07 = 365.5km; 2007/08 = No change; 2008/09 = 316.6km; 2009/10: 337km; 2010/11 = 327km; 2011/12 = 335km; 2012/13 = 360km

Hours worked by recognised environmental volunteer groups and Botanic Garden volunteers
WCC Parks and Gardens
2006/07 = 7,511 hours; 2007/08 = 9,388 hours; 2008/09 = 12,326 hours; 2009/10 = 25,000 hours; 2010/11 = 28,000 hours; 2011/12 = 31,200 hours; 2012/13 = 24,682 hours.40

Bird counts – abundance and distribution
WCC Parks and Gardens

% of stations where species were recorded

average number of birds observed at each station 41

Species
2007
2008
2009
2010
2011
2012
2007
2008
2009
2010
2011
2012

bellbird
14
23
7
3
0
1.5
0.07
0.13
0.56
0.19
0.00
0.02

fantail
55
57
47
51
27
18.5
0.38
0.33
4.50
7.44
0.35
0.25

grey warbler
91
93
76
68
59
69
1.09
1.51
7.75
9.84
0.84
1.20

hihi
1

1

0
0
0.00
0.00
0.06
0.00
0.00
0.00

kaka
4
16
7
6
1
5.5
0.02
0.07
0.56
0.44
0.10
0.07

kakariki

1

0.05
0.5
0.00
0.00
0.06
0.00
0.01
0.02

karearea

1

0
0.5
0.00
0.00
0.06
0.00
0.00
0.01

kingfisher
23
27
15
4
0.02
2.5
0.10
0.16
1.13
0.25
0.03
0.04

saddleback
3
4
3

0.05
1
0.01
0.02
0.19
0.00
0.07
0.02

shining cuckoo
4
8
19
29
0.16
19.5
0.02
0.03
1.44
3.00
0.17
0.25

silvereye
97
98
89
55
79
82.5
2.58
2.66
19.75
0.00
1.86
2.40

tui
96
99
93
89
72
36.5
1.48
2.16
16.88
38.31
1.35
0.80

whitehead
5

6
1
0.04
5
0.03
0.00
0.75
0.18
0.06
0.09

woodpigeon
18
20
16
15
0.06
3
0.11
0.11
1.25
1.62
0.07
0.03

Water consumption (commercial and residential combined)
Capacity Infrastructure Services Ltd
23.7 billion L This figure is total usage excluding unaccounted for water

Renewable energy (GWh) generated in the city (and % of city's electricity consumption)
Meridian Energy
Total renewable energy generated in the city = 475,850 MWh42 , which is equivalent to 35% of the city’s electricity consumption.43

City-wide greenhouse gas emissions

We have commissioned URS New Zealand to do our city-wide greenhouse gas inventories for 200/01, 2006/07, 2009/10 and 2012/13 using the latest international best practice methodology. This will be reported on in the 2013/14 Annual Report.

Fresh water biological health (macro invertebrates)
Greater Wellington Regional Council
(2005/06, 2006/07, 2007/08, 2008/09, 2009/10, 2010/11, 2011/12) – Makara Stream: 100, 94, 96, 113, 112, 110, 120; Karori Stream: 93, 109, 88, 95, 82, 79, 95.5; Kaiwharawhara Stream: 91, 88, 96, 85, 91, 87, 86.7. Most recently available data are for 2011/12 year.

Fresh water quality
Greater Wellington Regional Council
(2006/2007–2008/09, 2009/10, 2010/11, 2011/12) Makara Stream: Fair, Good, Fair, Fair; Karori Stream: Fair, Fair, Fair, Fair; Kaiwharawhara Stream: Fair, Fair, Fair, Fair. Most recently available data are for 2011/12 year.

Residents’ actions to reduce stormwater pollution
WCC Residents’ Monitoring Survey
(2007/08, 2008/09, 2009/10, 2010/11, 2011/12, 2012/13) Putting litter in a rubbish bin: 92%, 85%, 91%, 87%, 92%, 91%; Pouring all household liquid waste down inside sink, toilet or gully trap: 66%, 71%, 72%, 73%, 73%, 64%; Disposing of oil, paint, chemicals by putting them out with household rubbish or taking them for recycling: 57%, 68%, 69%, 67%, 74%, 49%; collect sweepings from driveway, paths or yard for composting or for disposal with your household rubbish: 56%, 62%, 62%, 60%, 65% 49%; Wash the car at the car wash or on the lawn: 43%, 52%, 52%, 45%, 49%, 30%; Washing paint brushes in an inside sink: 47%, 49%, 48%, 52%, 55%, 48%; Pick up droppings left by dogs: 23%, 23%, 26%, 30%, 28%, n/a

Total waste to landfill, per capita
WCC CitiOperations
2006/07 = 0.39 tonnes/person; 2007/08 = 0.36 tonnes/person; 2008/09 = 0.42 tonnes/person; 2009/10 = 0.41 tonnes/person; 2010/11 = 0.42 tonnes/person; 2011/12 = 0.43 tonnes/person; 2012/13 = 0.41 tonnes/person.

Residents’ actions to reduce waste from homes (including recycling, composting, etc)
WCC Residents’ Monitoring Survey
(2007/08, 2008/09, 2009/10, 2010/11, 2011/12, 2012/13) Use Council’s kerbside recycling service: 90%, 91%, 90%, 91% 92%, 86%; Donating things to second-hand shops/charities: 89%, 87%, 90%; 91%, 89%, 80%; Reusing plastic containers such as food containers: 87%, 88%, 88%, 92%, 90%, 85%; Buying refills: 75%, 66%, 73%, 74 %, 70%, 59%; Avoiding using plastic bottles or bags/use green bags: 57%, 57%, 59%, 58%, 49%, 34%; Taking things to recycling stations: 56%, 51%, 52%, 48%, 51%, 39%; Home composting: 44%, 48%, 47%, 50%, 50%, 41%.

New Zealanders’ and residents’ perceptions that Wellington is an eco-city
WCC Residents’ Monitoring Survey 2013 and Arts Omnibus Survey 2013
2012/13 New Zealanders: 27% Residents: 29%

Energy-use, per capita (Wellington Region)
Wellington Electricity
2007/08: 6.6 MWh/person; 2009/10: 7.2 MWh/person; 2010/11: 7.0 MWh/person; 2011/12: 6.9 MWh/person; 2012/13: 6.7 MWh/person.

Number/Sq M of ‘green star’ buildings/space in the city
New Zealand Green Building Council
2012/13: 15 buildings equalling 181,905 square metres in the city

Residents (%) who live in an insulated property
WCC Residents’ Monitoring Survey 2013
(2011/12, 2012/13) Residents’ who report their home as rarely or never: Cold: 30%, 27%; Damp: 63%, 60%; Hard to heat: 47%, 49%

Economic development outcome indicatorsTop

COUNCIL OUTCOME INDICATOR | SOURCE | DATA
Number of enterprises and jobs in the city and central city | Statistics NZ | (2013) City - enterprises: 25,086; jobs: 140,320. Central city – enterprises: 8,641; jobs: 96,410.  
Visitor numbers – international (guest nights) | PWT | (2007/08, 2008/09, 2009/10, 2010/11, 2011/12, 2012/13) 716,614; 691,851; 692,202; 702,463; 776,834; 667,760.
Visitor numbers – domestic (guest nights) | PWT | (2007/08, 2008/09, 2009/10, 2010/11, 2011/12, 2012/13): 1,223, 315; 1,268,426; 1,352,242; 1,280,162; 1,315,814; 1,373,613.
Accommodation (commercial) – occupancy rates and guest nights | Statistics NZ | (2007/08, 2008/09, 2009/10, 2010/11, 2011/12, 2012/13) Guest nights: 1,939,929; 1,960,277; 2,017,445; 1,982,625; 2,092,605; 2,041,371; Occupancy: 63%, 65%, 64%, 62%, 66%, 64% (Year-end April)
Number of major conferences | PWT | 2011/12 = 468; 2012/13 = 606 (year end March).44
Number of A-level events45 held in Wellington and their economic contribution | WCC Events | 2007/08 = 5 A-Level events ($30.5m); 2008/09 = 7 A-Level events ($51m); 2009/10 = 9 A-Level events ($34.8m); 2010/11= 9 A-Level events ($23.7m); 2011/12 = 16 A-Level events ($17m); 2012/13 = 9 A-level events ($30.2m).
New Zealand’s top 200 companies based in Wellington | NZ Management Magazine | (2006/07, 2007/08, 2008/09, 2009/10, 2010/11, 2011/12, 2012/13): 27, 29, 24, 24, 20, 18, 20
Business enterprises – births and growths (net growth in business) | Statistics NZ | Annual growth (business units): 2007/08 = 2.2%; 2008/09 = 2.2%; 2009/10 = 2%; 2010/11: -1.9%; 2011/12: 0.14%; 2012/13 = -0.04%. Net growth 2000–2010: 22%.    
Growth in business and employees – 'smart' business | Market Economics | (2012/13) Number of smart businesses in the city: 4,507; Percentage of employees working in smart business sector: 11.6%
Domestic and international airline passengers entering Wellington Airport | Wellington International Airport | (2006/07, 2007/08, 2008/09, 2009/10, 2010/11, 2011/12, 2012/13 - March year-end) Domestic: 4,060,313; 4,418,381; 4,644,505; 4,491,402; 4,479,664; 4,474,000; 4,647,000 International: 575,398; 603,344; 611,002; 626,365; 654,615; 718,000; 727,000
Free wifi usage (logons/day) – waterfront and central city | Citylink | (2012/13) Central city: total of 1,903,357 logons (5,214 per day) Waterfront: 106,659 (292 per day).
Residents who have access to broadband (%) including ultrafast | WCC Residents’ Monitoring Survey | (2008/09, 2009/10, 2010/11, 2011/12, 2012/13): 79%, 86%, 86%, 90%, 97%.
Gross Domestic Product (per capita growth) | Infometrics | (2008, 2009, 2010, 2011, 2012/13) 1.21%, 0.90%, 1.01%, -1.45%, 0.2% Regional share of national employment: 12.2% (MBIE Regional Activity Report)  
Educational achievement (degree level qualifications) | Statistics NZ | 33% of Wellingtonians over the age of 15 have a Degree-level qualification or higher. (2006 census data – not updated)
Labour force participation rate and youth NEET rates | Statistics NZ | (2012/13) Labour force participation rate: 71.5% Youth NEET rates: 9.9%
Income – household and personal | Statistics NZ | (2006 Census data): Median personal income: $32,500; Median Household Income: $72,200.
Ratio of income to cost of living for residents | Statistics NZ | Between 2011 and 2012, the ratio between earnings and cost of living increased by 0.8% (became more expensive).
Pedestrian counts – average of various Lambton Quay sites | WCC golden mile pedestrian survey | (2012/13) 2179 average hourly pedestrian counts for various Lambton quay sites Monday – Friday  
Total value of exports (value and estimated tonnage) | Statistics NZ | Wellington Airport: Tonnage: 870, Value $18.5 Million. Wellington Seaport: Tonnage 1.15M; Value $989M.  
Number of international air connections (by country) | Wellington International Airport | One - Australia
Businesses and employees engaged in research and development sector | Statistics NZ | (2008, 2009, 2010, 2011, 2012) Businesses: 152; 154; 149; 146; 152. Employees: 4,930; 4,840; 4,930; 4,990; 4,920.  
Secondary (international) and Tertiary (international and domestic) students enrolled per 1000 residents | Education Counts | (2012/13) 346 international fee paying secondary school students Tertiary students: domestic: 22,016; international: 2,589.

Cultural wellbeing outcome indicatorsTop

COUNCIL OUTCOME INDICATOR | SOURCE | DATA
Residents’ frequency of engagement in cultural and arts activities | WCC Residents’ Monitoring Survey | (2010, 2011, 2012, 2013) At least once a week: 11%,11%, 9%, 7%; At least once a month: 41%, 36%, 39%, 30%; At least once ever six months: 31%, 33%, 31%, 32%; At least once a year: 8%, 9%, 9%, 15%; less often: 6%, 8%, 10%, 12%.
New Zealanders’ and residents’ perceptions that ‘Wellington has a culturally rich and diverse arts scene’ | WCC Residents’ Monitoring Survey 2013 and Arts Omnibus Survey 2013 | New Zealanders (2007, 2008, 2009, 2010, 2011, 2012, 2013) 81%, 82%, 84%, 85%, 81%, 77%, 84%).   Residents (2013: 92%)  
Residents’ perceptions that Wellington’s local identity (sense of place) is appropriately valued and protected | WCC Residents’ Monitoring Survey | (2007, 2008, 2009, 2010, 2011, 2012, 2013) 79%, 77%, 79%, 81%, 81%, 82%, 77%.
Number of events held at key venues46 | Venues and Te Papa | (2007/08, 2008/09, 2009/10, 2010/11, 2011/12, 2012/13) 1,176; 1,361; 1,514; 1,489; 1,424, 1356  
New Zealanders’ and residents’ perceptions that ‘Wellington is the arts capital of New Zealand’ | WCC Residents’ Monitoring Survey 2013 and Arts Omnibus Survey 2013 | New Zealanders (2007, 2008, 2009, 2010, 2011, 2012, 2013) 61%, 63%, 64%, 68%, 65%, 61%, 54%.   Residents (2007, 2008, 2009, 2010, 2011, 2012, 2013) 76%, 77%, 80%, 81%, 79%, 79%, 70%.
New Zealander and residents’ perceptions that ‘Wellington is the events capital of New Zealand’ | WCC Residents’ Monitoring Survey 2013 and Arts Omnibus Survey 2013 | New Zealanders (2007, 2008, 2009, 2010, 2011, 2012, 2013) 37%, 39%, 42%, 53%, 42%, 37%, 29%   Residents (2007, 2008, 2009, 2010, 2011, 2012, 2013) 63%, 65%, 65%, 70%, 64%, 60%, 51%
Residents’ (%) agreement with the statement that ‘Wellington is an easy place to get involved in the arts’ | WCC Residents’ Monitoring Survey | (2013) 87%

Social and recreation outcome indicatorsTop

COUNCIL OUTCOME INDICATOR
SOURCE
DATA

Residents’ usage of WCC community facilities
WCC Residents’ Monitoring Survey
(2007, 2008, 2009, 2010, 2011, 2012, 2013) Community centre = 19%, 18%, 25%, 24%, 22%, 27%, 19% Community Hall = 18%, 15%, 20%, 23%, 22%, 28%, 17%

Residents’ perceptions that they feel a sense of community with others in their local neighbourhood
Quality of Life Survey
(2006, 2008, 2010, 2012) 57%, 51%, 60%, 53%  

Residents’ perceptions that Wellington offers a wide range of recreation activities
WCC Residents’ Monitoring Survey
(2007, 2008, 2009, 2010, 2011, 2012, 2013) 94%, 93%, 94%, 91%, 91%, 92%, 76%

Residents’ frequency of physical activity
WCC Residents’ Monitoring Survey
(2007, 2008, 2009, 2010, 2011, 2012, 2013) 80%, 72%, 73%, 75%, 77%, 76%, 64% (more than 2.5 hours per week).

Residents’ perceptions of barriers restricting participation in recreation activities, for example, too busy, poor health, no facilities, parking, transport, weather, expense
WCC Residents’ Monitoring Survey
(2010, 2011, 2012, 2013) Too busy: 28%, 26%, 20%, 47%; Poor health: 10%, 8%, 9%, 11%; Lack of motivation: 8%, 7%, 5%, 24%; Lack of parking/public transport/transport: 8%, 6%, 8%, 20%; Weather: 7%, 5%, 6%, 27%; Expense: 6%, 7%, 7%, 37%.

Residents’ importance of sense of community in local neighbourhood
Quality of Life Survey
(2006, 2008, 2010, 2012): 69%, 59%, 70%, 75%  

Residents’ usage of Council-run Libraries
WCC Residents’ Monitoring Survey
(2008, 2009, 2010, 2011, 2012, 2013) 73%, 79%, 79%, 81%, 80%, 68%.

Residents frequency of visiting Council-run Libraries
WCC Residents’ Monitoring Survey
(2010, 2011, 2012, 2013) More than once a week: 10%, 7%, 8%, 5%; once a week: 16%, 19%, 17%, 10%; once every 2-3 weeks: 19%, 22%, 21%, 29%; once a month: 23%, 23%, 21%, 18%; once every 2–3 months: 14%, 15%, 15%, 19%; once every 4–6 months: 10%, 8%, 10%, 13%; less often: 8%, 7%, 9%, 6%.

Residents engaging in neighbourly actions
WCC Residents’ Monitoring Survey
(2013) Spoken to a neighbour: 92%; given help to a neighbour: 58%; received help from a neighbour: 43%; participated in an activity with a neighbour: 28%; discussed emergency preparedness with a neighbour: 12%; none of the above: 7%

Types of social networks to which residents belong (community, sports, ethnic, etc)
Quality of Life Survey
(2006, 2008, 2010, 2012) School or work network: 62%, 67%, 65%, 58%; Hobby/interest group: 37%, 41%, 38%, 30%; Online community groups (eg Facebook): 20%, 38%, 59%, 51%; Sports club: 33%, 29%, 30%, 29%; Church/spiritual group: 32%, 26%, 23%, 19%; Community/voluntary group: 22%, 19%, 22%, 18%; Friends: 4%, 11%, 7%, 3%.  

Ethnic diversity of the city’s population and residents’ values regarding diversity
Statistics NZ and WCC Residents’ Monitoring Survey
30% of the city’s population are non-European. 67% of residents believe that different lifestyles and cultures make Wellington a better place to live.

Residents’ perceptions of safety – central city and local neighbourhood (day and night)
WCC Residents’ Monitoring Survey
(2007, 2008, 2009, 2010, 2011, 2012, 2013) Central city day = 99%, 96%, 99%, 99%, 99%, 97%, 98%. Central city night = 74%, 56%, 67%, 64%, 74%, 69%, 72%. Neighbourhood day = 99%, 98%, 98%, 100%, 98%, 98%, 99%. Neighbourhood night = 86%, 84%, 88%, 87%, 89%, 88%, 85%.

Residents’ perceptions – city safety issues of most concern47
WCC Residents’ Monitoring Survey
(2010/11, 2011/12, 2012/13): Alcohol and drug problems: 62%, 67%, 54%. Dangerous drivers (including speed, drunk drivers): 57%, 55%, 34%. Threatening people/people behaving dangerously: 44%, 47%, 53%. Poorly lit/dark public areas (streets, paths, parks): 47%, 59%, 63%. Traffic including busy roads/lack of pedestrian facilities: 46%, 45%, 31%. Car theft/vandalism: 47%, 52%, 33%. Graffiti: 50%, 52%, 46%. Vandalism (broken windows in shops): 30%, 37%, 30%. Poorly maintained/dangerous public areas: 36%, 43%, 37%.

Crime – number recorded (resolution rate) – by category48
NZ Police
(2008, 2009, 2010, 2011, 2012) Offences against the person (% resolved): 7,052 (78%); 7,222 (80%); 6,959 (76%); 6,406 (77%); 5,837 (71%). Burglary/ Theft: 21,657 (20%); 21,259 (21%); 19,733 (19%); 20,144 (19%); 17,606 (20%). Illicit drug offences: 1,897 (96%); 2,367 (97%); 1,907 (95%); 1,810 (96%); 2,603 (96%). Public order offences: 4,517 (86%); 5,108 (87%); 4,342 (86%); 4,056 (89%); 3,807 (85%).

Residents with home emergency items and plan
WCC Residents’ Monitoring Survey
Items: (2010, 2011, 2012, 2013): 76%, 85%, 83%, 78% Plan: (2007, 2008, 2009, 2010, 2011, 2012, 2013): 33%, 36%, 45%, 48%, 65%, 59%, 42%

Number of notifications of the most prevalent food and water-borne diseases
WCC Building Consents and Licensing
2006/07 = 261; 2007/08 = 269; 2008/09 = 306; 2009/10 = 291; 2010/11 = 210; 2011/12 = 161; 2012/13 = 234.49

Life expectancy (with breakdown)
Statistics NZ
Male: 1995–1997 = 75.4; 2000–2002 = 78; 2005–2007 = 80.1%. Female: 1995–1997 = 81.2; 2000–2002 = 82.5; 2005–2007 = 83.7%. (Census – not updated in 2011/12 or 2012/13).

Residents’ perception of their ‘quality of life’
WCC Residents’ Monitoring Survey
(2007/08, 2008/09, 2009/10, 2010/11, 2011/12, 2012/13) 94%; 93%; 92%; 93%; 91%; 88%

Urban development outcome indicatorsTop

COUNCIL OUTCOME INDICATOR
SOURCE
DATA

Residents’ perceptions that Wellington is a great place to live, work and play
WCC Residents’ Monitoring Survey
(2008, 2009, 2010, 2011, 2012, 2013) great place to live: 95%, 94%, 94%, 96%, 96%, 93%; great place to work: 80%, 78%, 75%, 74%, 69%, 66%; great place to play: 91%, 93%, 90%, 91%, 92%, 88%.

Value of commercial and residential building consents
Statistics NZ
(2009, 2010, 2011, 2012, 2013 March Year End). Commercial: $318.7m, $307.9m, $263.8m, $209.8m, $208.7m. Residential: $314.3m, $210.8m, $265.9m, $231.5m, $266.9m.

Population density – central city area, 'Growth Spine,' inner-city residential, outer residential, suburban centres (long-term indicator)
WCC GIS
(2001, 2006) Central city: 5,844; 8,547 people; ‘Growth Spine:’ 18,348; 22,293 people; Inner city: 23,559; 25,227 people; Outer residential: 98,718; 108,402 people; Suburban centres: 2,295; 3,105 people. (Census – not updated in 2011/12 or 2012/13)

Residents’ perceptions of the city centre as an easy place to get to, use and enjoy
WCC Residents’ Monitoring Survey
(2013): easy to get around: 81%; easy to access leisure activities: 74%

Residents’ perceptions of urban design/urban form safety issues (ie graffiti, vandalism, poorly lit public spaces etc)
WCC Residents’ Monitoring Survey
(2008, 2009, 2010, 2011, 2012, 2013) Poorly lit public areas: 53%; 48%; 57%; 47%; 59%; 63% Vandalism: 45%; 34%; 36%; 30%; 37%; 30% Graffiti: 64%; 56%; 48%; 50%; 52%; 46% Poorly maintained public areas: 42%; 34%; 41%; 36%; 43%; 37%.

% of city’s population who reside in the central city
Statistics NZ
13,134 people reside in the central city50 , equating to 7.3% of the city’s population.

Building density (buildings per hectare) – central city area, 'Growth Spine,' inner-city residential, outer residential, suburban centres (long-term indicator)
WCC GIS
(2010, 2011, 2012, 2013) Central Area – 1,904 (7.85 buildings per hectare); 1,884 (7.76 buildings per hectare); 1,869 (7.70 buildings per hectare); 1,870 (7.7 buildings per hectare). Inner Residential – 10,652 (34.60 buildings per hectare); 10,633 (34.5l buildings per hectare); 10,578 (34.46 buildings per hectare), 10,577 (34.39 buildings per hectare).Outer Residential – 76,699 (21.84 buildings per hectare); 76,818 (21.88 buildings per hectare); 76,990 (21.96 buildings per hectare); 77,009 (21.9 buildings per hectare). Suburban Centres – 2,217 (7.37 buildings per hectare); 2,207 (7.34 buildings per hectare); 2,201 (7.32 buildings per hectare); 2,202 (7.32 buildings per hectare). Growth Spine – 10,172 (13.93 buildings per hectare); 10,153 (13.90 buildings per hectare)); 10,124 (13.87 buildings per hectare); 10,131 (13.87 buildings per hectare).

Proportion of houses within 100m of a public transport stop.
WCC GIS
2006 = 48%; 2008 = 48%; 2010 = 48%; 2011 = 47%; 2012 = 46%; 2013 = 45%

Identified earthquake-prone buildings that have been strengthened/demolished
WCC Building Consents and Licensing
2009/10: 4; 2010/11: 11; 2011/12: 12; 2012/13: 44  

Residents’ perceptions that heritage items contribute to the city and local communities’ unique character  
WCC Residents’ Monitoring Survey
(2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013) City: 91%, 86%, 91%, 95%, 91%, 88%, 91%, 92% Local community: 79%, 72%, 74%, 83%, 80%, 77%, 77%, 72%

New Zealanders perception that Wellington is an attractive destination
Colmar Brunton Omnibus Survey
(2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013) 81%, 75%, 79%, 80%, 82%, 75%, 77%, 78%.

Residents’ rating of sense of pride in the way their city looks and feels.
WCC Residents’ Monitoring Survey
(2007, 2008, 2009, 2010, 2011, 2012, 2013) 87%, 86%, 88%, 86%, 91%, 91%, 82%.

Transport outcome indicatorsTop

COUNCIL OUTCOME INDICATOR
SOURCE
DATA

Residents’ perceptions that peak traffic volumes are acceptable
WCC Residents’ Monitoring Survey
(2007, 2008, 2009, 2010, 2011, 2012, 2013) 55%, 58%, 64%, 66%, 75%, 73%, 57%

Total fuel used on Wellington roads, per capita
WCC Infrastructure Planning and Data
2008/09: 2,022 litres/person; 2009/10: 2,012 litres/person 2010/11: 1,934 litres/person; 2011/12: 1908 litres/person; 2012/13: 1,843 litres/person

Residents’ perceptions that the city’s transport system allows easy access from the suburbs to the city
WCC Residents’ Monitoring Survey
(2007, 2008, 2009, 2010, 2011, 2012, 2013) 77%, 75%, 80%, 80%, 77%, 76%, 63%.

Mode of transport used by residents to come into the CBD – by car, bus, walking, train, and cycling
WCC Residents’ Monitoring Survey
(2008, 2009, 2010, 2011, 2012, 2013) Car: 46%, 36%, 35%, 29%, 36%, 33%; Bus: 28%, 33%, 38%, 31%, 33%, 34%; Walking: 15%, 17%, 16%, 26%, 16%, 20%; Train: 6%, 5%, 4%, 6%, 4%, 6%; Cycle: 4%, 4%, 4%, 4%, 5%, 3%.

Residents’ perceptions that public transport is convenient and affordable
WCC Residents’ Monitoring Survey
(2008, 2009, 2010, 2011, 2012, 2013) Convenient: 77%, 80%, 75%, 74%, 74%, 68%; Affordable: 75%, 72%, 68%, 55%, 51%, 40%.

Uses of public transport: buses, trains
Greater Wellington
(2013) Total passenger boardings: Bus = 23,608,000; Trains: 11,355,000 (Wellington Region)

Air quality monitoring (nitrogen dioxide, carbon monoxide, and particulate matter PM₁₀)
Greater Wellington
(2009, 2010, 2011, 2012 Calendar years): Nitrogen dioxide (µg/m³): Maximum: 100.1, 105.4, 93.7, 92.0; mean (annual): 27.4, 25.8, 24.4, 20.2. Carbon monoxide (mg/m³): Maximum: 2.9, 3.2, 2.5, 1.9; mean (annual): 0.6, 0.6, 0.6, 0.4. Particulate matter PM₁₀ (µg/m³): Maximum: 31, 32, 34, 32; mean: 13, 13, 13, 13.

Number of road crashes resulting in injury
NZTA
(2007, 2008, 2009, 2010, 2011, 2012): Total: 521, 559, 433, 372, 314, 298. Fatal: 2, 5, 3, 3, 6, 2. Serious: 89, 88, 53, 55, 79, 77.  

Social cost of all crashes – includes loss of life estimates and non-injury crashes.
NZTA
(2007, 2008, 2009, 2010, 2011, 2012) $163m, $168m, $112m, $104m, $116m, $98m.51

Residents’ perceptions of transport related safety issues (issues of most concern)
WCC Residents’ Monitoring Survey
(2007/08, 2008/09, 2009/10, 2010/11, 2011/12, 2012/13) Traffic or busy roads: 39%; 43%; 43%; 46%; 45%; 31%. Car theft or vandalism: 52%; 49%; 53%; 47%; 52%; 33%. Poorly lit or dark public areas: 53%; 48%; 57%; 47%; 59%; 63%. Dangerous driving: 56%; 51%; 58%; 57%; 55%; 34%.

39 All per capita calculations are based on the most recent 30 June 2012 Wellington City resident population estimate from Statistics NZ (202,200).

40 The number of volunteer groups continues to increase, however record keeping of volunteer hours across the 75 groups can be difficult.

41 Two years ago we changed the areas we were conducting bird counts in, which led to a change in abundance that we were recording. This is the information from the November 2012 bird count.

42 This figure does not include small scale renewables such as solar PV, microwind and solar hot water.

43 The vast majority of this renewable energy total is from Project West Wind, which connects into the national grid as opposed to Wellington City. This means that some electricity produced by West Wind will be consumed by other parts of the country.

44 The data we use for this measure is the number of multi-day conferences (events) held in Wellington. This has changed from previous years as a new national Convention Activity Survey (CAS) was initiated by MBIE and the NZ Bureaux (of which the Wellington Convention Bureau is a member). Therefore the data we previously used is not comparable to the new dataset.

45 ‘A level’ events are defined as those events with a total funding spend of $50K plus, excluding the iconic events, being WOW, Hertz Sevens and NZ International Arts Festival.

46 Key venues include: Westpac Stadium; St James Theatre; Opera House; Wellington Town Hall; Michael Fowler Centre; TSB Bank Arena and Te Papa.

47 In the 2012/13 Residents’ Monitoring Survey, residents were asked what issues were particularly concerning, as opposed to which issue was of ‘most’ concern.

48 There has been an error in calculation of burglary/theft numbers in previous reports. The error has been corrected and data backdated accordingly.

49 There has been a national increase in cases of the two most prevalent waterborne diseases – Cryptospoidium and Giardia. The Ministry of Health has increased education awareness on prevention as a result.

50 Central city is defined as the Thorndon/Tinakori; Lambton; Willis Street/Cambridge Terrace area units.

51 The calculation for this measure has been updated and recalculated for past years. It calculates the social cost of all crashes in Wellington City causing injury and non-injury.

Our environmental impact

Greenhouse gas emissions

Energy use

Fuel use

Resource use

Ongoing projects

We aim to achieve year-on-year improvements in our sustainable practices. We have an obligation to act sustainably, both as an organisation and as a service provider to the community.

One of the city’s key strategic goals – adopted as part of our vision, Wellington Towards 2040: Smart Capital – is to be an eco-city. To meet this goal, the Council is taking an environmental leadership role, proactively responding to environmental challenges and setting an example for others. This section provides an assessment of our corporate ‘environmental footprint’.

We have measured our performance using corporate sustainability indicators that follow Global Reporting Initiative’s Sustainability Reporting Guidelines.52 The indicators are:

greenhouse gas emissions
energy use
fuel use
water use
paper use
waste produced and recycled.

Greenhouse gas emissions

The corporate emission reduction targets adopted by the Council are:

Year
2003
2010
2020
2050

Target (against base year)
Base year
Stabilise
(0% increase)
-40%
-80%

The Council’s corporate greenhouse gas inventory covers all of the activities of the Council and its Council-Controlled Organisations, in line with reporting requirements of the Greenhouse Gas Protocol. This includes emissions from water supply, stormwater and wastewater activities, as well as methane emissions generated by the collection and disposal of the community’s waste in Council-used landfills.

We will be engaging independent experts to review and audit our corporate greenhouse gas emissions. These audit results will be ready for public reporting in the 2013/14 Annual Report.

Energy useTop

We have undertaken a range of projects aimed at improving the energy efficiency of our operations which have achieved positive results. We have seen a decrease in both electricity and gas use from 2011/12 to 2012/13.53

However, weather is a key variable in our ‘business as usual’ electricity and gas usage and is a contributing factor to the decrease over the past year. For example, while we did some gas efficiency work, the majority of the reduction can be attributed to the reduced need for heating due to the exceptionally warm weather.

Our energy management plan has implemented many electricity savings measures; however the impact of those savings measures has been lessened by the increase in demand for air conditioning over summer. Overall usage has decreased, which is a positive result.

Corporate energy use

Year | 2009/10 | 2010/11 | 2011/12 | 2012/13
Electricity (kWh) | 28,824,859 | 27,989,319 | 28,580,202 | 27,774,631
Gas (kWh) | 19,515,668 | 17,394,927 | 17,583,849 | 15,875,753

Fuel useTop

There has been a declining trend in the use of fuel in our vehicles.

Since 2009/10, there has been a 28 percent reduction in petrol use and a 40 percent reduction in diesel use. These changes in petrol consumption can largely be attributed to the improvements in fleet management and utilisation, and procurement specifications of light vehicles. The decline in diesel use is largely due to changes in the landfill operations and confining the Council's bulk fuel reliance at the Southern Landfill to the composting operations. The bulk fuel volumes are set to reduce by 88 percent.

Corporate fuel use

Year | 2009/10 | 2010/11 | 2011/12 | 2012/13
Petrol (litres) | 188,806 | 168,906 | 155,276 | 134,772
Diesel (litres) | 726,469 | 699,257 | 653,282 | 434,468

Resource useTop

Water use has reduced by 4.8 percent in 2012/13 compared to 2009/10 however there was a slight increase from last year. This is mainly due to the drought conditions experienced and while there was a period where sportsfield irrigation stopped, it was not long enough to offset the extra usage up to that point.

Our paper use has steadily declined since 2009/10. We have continued to print more documents internally on demand, instead of completing large external runs. With regards to committee agendas we used to print 72 copies per meeting, and we now only print 46 copies. With the introduction of Council DashBoard – the Cloud-based solution to deliver meeting documents on iPads for the Mayor and Councillors we expect to see a further decline in the amount of printing required.

Corporate resource use

Year | 2009/10 | 2010/11 | 2011/12 | 2012/13
Water-use (m3) | 511,117 | 517,970 | 466,706 | 487,428
A4 paper (reams) | 18,225 | 16,042 | 15,118 | 7,36854

For 2012/13 the organisation produced 273.33 tonnes of waste of which 160 tonnes (58 percent) was recycled. Compared to the previous year our total waste has increased, however we have increased the amount we recycle – up 4 percent from last year.

Ongoing projectsTop

We have a range of projects that, subject to partner funding, will help reduce our environmental footprint further. These include:

extending LED lighting technology

pilot solar PV scheme

investigation into smarter streetlighting systems.

52 See www.globalreporting.org

53 Data reported in the rest of this section is for Council owned and run properties only.

54 We changed paper suppliers in December and to date the paper usage from January–June 2013 is not available. This figure represents our usage from July–December 2012.

Independent auditor’s report

Opinion

Basis of opinion

Responsibilities of the Council

Responsibilities of the Auditor

Independence

To the readers of Wellington City Council and Group’s annual report for the year ended 30 June 2013

The Auditor General is the auditor of Wellington City Council (the City Council) and Group. The Auditor General has appointed me, Andy Burns, using the staff and resources of Audit New Zealand to audit:

the financial statements of the City Council and Group that comprise:

the statement of financial position as at 30 June 2013 on page 105;

the statement of comprehensive financial performance, statement of changes in equity and statement of cash flows for the year ending 30 June 2013 on pages 102 to 107; and

the notes to the financial statements that include accounting policies and other explanatory information about the financial statements on pages 108 to 188;

the statement of service provision (made up of the individual statements of service performance) of each group of activities carried out by the City Council on pages 14 to 74;

the funding impact statements in relation to each group of activities of the City Council on pages 82 to 99;

the statements about budgeted and actual capital expenditure in relation to each group of activities of the City Council on pages 82 to 100; and

the funding impact statement of the City Council on page 82.

In addition, the Auditor General has appointed me to report on whether the City Council and Group’s annual report complies with the Other Requirements of schedule 10 of the Local Government Act 2002, where applicable, by including:

information about:

internal borrowing on page 144;

reserve funds on page 154;

remuneration paid to the elected members and certain employees of the City Council on page 185;

employee staffing levels and remuneration on page 185; and

severance payments on page 188;

Council-Controlled Organisations on pages 190 to 197;

a report on the activities undertaken by the City Council and Group to establish and maintain processes to provide opportunities for Māori to contribute to the Council’s decision making processes on page 18; and

a statement of compliance signed by the Mayor of the Council, and by the City Council’s Chief Executive on page 101.

Opinion

Audited information

In our opinion:

the financial statements of the City Council and group on pages 75 to 188:

comply with generally accepted accounting practice in New Zealand; and

fairly reflect:

the City Council and Group’s financial position as at 30 June 2013; and

the results of its operations and cash flows for the year ended on that date

the statements of service performance of the City Council on pages 14 to 74:

complies with generally accepted accounting practice in New Zealand; and

fairly reflects the City Council’s levels of service for the year ended 30 June 2013, including:

the levels of service as measured against the intended levels of service adopted in the Long-term Plan; and

the reasons for any significant variances between the actual service and the expected service

the funding impact statements in relation to each group of activities of the City Council on pages 82 to 100, fairly reflects by each group of activities, the amount of funds produced from each source of funding and how the funds were applied as compared to the information included in the City Council’s Long-term Plan.

the statements about budgeted and actual capital expenditure in relation to each group of activities of the City Council on pages 82 to 100, fairly reflects by each group of activities the capital expenditure spent as compared to the amounts budgeted and set out in the City Council’s Long-term Plan or Annual Plan.

the funding impact statement of the City Council on page 82, fairly reflects the amount of funds produced from each source of funding and how the funds were applied as compared to the information included in the City Council’s Annual Plan.

Compliance with the other requirements of schedule 10

In our opinion, which is not an audit opinion, the City Council and Group’s Annual Report complies with the Other Requirements of schedule 10 that are applicable to the Annual Report.

Our audit was completed on 28 August 2013. This is the date at which our opinion is expressed.

The basis of our opinion is explained below. In addition, we outline the responsibilities of the Council and our responsibilities, and we explain our independence.

Basis of opinionTop

We carried out our audit in accordance with the Auditor General’s Auditing Standards, which incorporate the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the information we audited is free from material misstatement.

Material misstatements are differences or omissions of amounts and disclosures that, in our judgement, are likely to influence readers’ overall understanding of the financial statements and statements of service performance. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.

An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the information we audited. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the information we audited, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the City Council and Group’s preparation of the information we audited that fairly reflect the matters to which they relate. We consider internal control in order to design procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the City Council and Group’s internal control.

An audit also involves evaluating:

the appropriateness of accounting policies used and whether they have been consistently applied;

the reasonableness of the significant accounting estimates and judgements made by the Council;

the adequacy of all disclosures in the information we audited;

determining the appropriateness of the reported statements of service performance within the Council’s framework for reporting performance; and

the overall presentation of the information we audited.

We did not examine every transaction, nor do we guarantee complete accuracy of the information we audited.

When reporting on whether the Annual Report complies with the Other Requirements of schedule 10 of the Local Government Act 2002, our procedures were limited to making sure the information required by schedule 10 was included in the Annual Report, where relevant, and identifying material inconsistencies, if any, with the information we audited. This work was carried out in accordance with International Standard on Auditing (New Zealand) 720; The Auditor’s Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements. As a result we do not express an audit opinion on the City Council and Group’s compliance with the requirements of schedule 10.

We did not evaluate the security and controls over the electronic publication of the information we are required to audit and report on. We have obtained all the information and explanations we have required and we believe we have obtained sufficient and appropriate evidence to provide a basis for our opinion.

Responsibilities of the CouncilTop

The Council is responsible for preparing:

financial statements and statements of service performance that:

comply with generally accepted accounting practice in New Zealand;

fairly reflect the City Council and Group’s financial position, financial performance and cash flows;

fairly reflect its service performance, including achievements compared to forecast;

funding impact statements in relation to each group of activities that fairly reflects by each group of activities the amount of funds produced from each source of funding and how the funds were applied as compared to the information included in the City Council’s Long-term Plan;

statements about budgeted and actual capital expenditure in relation to each group of activities that fairly reflects by each group of activities the capital expenditure spent as compared to the amounts budgeted and set out in the City Council’s Long-term Plan or Annual Plan; and

a funding impact statement that fairly reflects the amount of funds produced from each source of funding and how the funds were applied as compared to the information included in the City Council’s Annual Plan;

the other information in accordance with the requirements of schedule 10 of the Local Government Act 2002.

The Council is responsible for such internal control as it determines is necessary to ensure that the Annual Report is free from material misstatement, whether due to fraud or error. The Council is also responsible for the publication of the Annual Report, whether in printed or electronic form.

The Council’s responsibilities arise under the Local Government Act 2002.

Responsibilities of the AuditorTop

We are responsible for expressing an independent opinion on, the information we are required to audit, and whether the Council has complied with the Other Requirements of schedule 10, and reporting that opinion to you. Our responsibility arises under section 15 of the Public Audit Act 2001 and section 99 of the Local Government Act 2002.

IndependenceTop

When carrying out this audit, which includes our report on the Other Requirements, we followed the independence requirements of the Auditor General, which incorporate the independence requirements of the External Reporting Board. During the year we undertook a review of the Clifton Terrace car park managed by the City Council on behalf of the New Zealand Transport Agency. Other than this audit, which includes our report on the Other Requirements, and the review of the Clifton Terrace car park, we have no relationship with or interests in the City Council or any of its subsidiaries.

A P Burns
Audit New Zealand
On behalf of the Auditor General
Wellington, New Zealand