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Chris Comber, Pam Bicknell and Megan
Mackenzie spoke to the item, which was taken as read. Discussions noted:
·
Operating
revenue is over budget by 6%, driven mostly by timing of subsidies and grants
related to the Silt Taskforce and NIWE projects. Revenue budgets are also
affected by higher dividends, lower interest rates, realisation of gains when
the change of managed funds provider happened and insurance claim payouts.
· Napier Port share price increased to
$2.84 and the Port has declared a one-off special dividend of 2.5 cents per
share which will be an additional $2.75 M dividend for HBRC.
· Indicative requested carry forwards
of $59.8M made up of Asset Management ($8M – IRG, Water Security, Open
Spaces, Coastal Hazards), NIWE ($51M), Corporate ($1M – mostly ICT
renewals) and ICM ($79k Marine Protection & Enhancement).
· Rates penalties are in line with
previous years, noting that remissions have not been as high as the $2.1M
budgeted.
· Aged debt continues to decrease,
mostly due to the efforts of HBRC debtors team which resulted in $30k savings
that would have previously been paid to debt collection agencies.
· Drew down $10M with LGFA to ensure
liquidity and external debt now at $113.8M.
· All NIWE project delivery plans have
now been approved and the programme spend sits at $19M to date, which is
being carried by HBRC while awaiting reimbursement by Central Government.
· Cyclone Gabrielle recovery $66.8M
spent to date and received $32.4M from insurance and NEMA claims to date.
Forecasting another $13.8M to be paid from NEMA and insurance which would
leave a hole of $20.7M , of which $13.6M has been covered by rates &
reserves and will leave $7M internal load. Note that $14.1M infrastructure
work and $1.3M for coroner’s enquiry have not been included.
· Silt Taskforce money must be spent
by 30 June, the funding sits within the Policy and Regulation Group of
Activities, and will net to $0.
· It was reiterated that the
financials contained in the Organisational Performance Report are by group of
activity while the financial report is reported differently due to the
different accounting requirements for the Annual Report, for Audit.
· The NIWE costs will start to align
more with when the work is being done now that the initial set-up costs have
mostly been attributed.
·
In
relation to Cyclone Gabrielle recovery costs, it was noted that the NEMA
policy is that internal council staff time will not be reimbursed.
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