Part C: ​Financial information

Financial Statements

Prospective Statement of Comprehensive Revenue and Expense

  2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes
         
REVENUE        
Revenue from rates 270,907 284,138 13,231  
Revenue from development contributions 2,000 2,000 -  
Revenue from grants, subsidies and reimbursements 42,511 41,037 (1,474) 1
Revenue from operating activities 121,287 121,965 678 1
Investments 20,135 20,447 312  
Fair value movement on investment property revalaution 3,665 3,989 324  
Other revenue 1,050 1,050 -  
Finance revenue 637 650 13  
TOTAL REVENUE 462,192 475,276 13,084  
EXPENSE        
Finance expense 22,961 25,617 2,656 2
Expenditure on operating activities 316,333 334,923 18,590 3
Depreciation and amortisation 99,797 101,975 2,178  
TOTAL EXPENSE 439,091 462,515 23,424  
NET SURPLUS FOR THE YEAR 23,101 12,761 (10,340) 4
OTHER COMPREHENSIVE REVENUE AND EXPENSE        
Fair value movement - property, plant and equipment - net - 106,241 106,241  
Share of equity accounted surplus from associates - - -  
TOTAL OTHER COMPREHENSIVE REVENUE AND EXPENSE - 106,241 106,241  
TOTAL COMPREHENSIVE REVENUE AND EXPENSE FOR THE YEAR 23,101 119,002 95,901  

Notes:

  1. Details of specific changes to revenue from activities can be found in the Funding Impact Statements.
  2. Additional interest costs due to increased spending on capital projects.
  3. Details of specific changes to operational costs can be found in the Funding Impact Statements.

4. EXPLANATION OF SURPLUS 2016/17 AP
   
Items that are presented in the Prospective Statement of Comprehensive Revenue and Expense but do not offset rates  
   
BALANCED BUDGET 0
   
DEPRECIATION NOT FUNDED BY RATES:  
Depreciation collected for capital assets that will not be renewed  
NZTA Transport funded projects (7,597)
General (91)
Moa Point sewerage treatment plant (3,040)
Decommissioned Living Earth joint venture plant (201)
Wellington Waterfront Limited depreciation (3,396)
TOTAL DEPRECIATION NOT FUNDED BY RATES (14,326)
   
REVENUE RECEIVED FOR CAPITAL PURPOSES:  
Funding received from external parties for major capital expenditure projects  
NZTA capital funding 14,868
Housing capital grant and ring-fenced surplus (5,909)
Development contributions 18,082
Bequests, trust and other external funding 2,000
TOTAL REVENUE RECEIVED FOR CAPITAL PURPOSES 29,041
   
ITEMS FUNDED FROM PRIOR YEAR SURPLUSES:  
City Growth Fund (3,000)
Lyall Bay Surf Club (200)
Toitu Pōneke Sports Hub (150)
TOTAL ITEMS FUNDED FROM PRIOR YEAR SURPLUSES (3,350)
   
ADDITIONAL OPERATIONAL EXPENDITURE ITEMS:  
Operational expenditure items identified as equitable to be funded through other funding mechanisms  
Alex Moore Park 12
Cable Car (875)
Odyssey-related (3,620)
Reserves purchases and development fund (30)
Roading (848)
Toitu Pōneke Sports Hub (520)
Weathertight homes funding 7,227
Westpac Stadium (4,575)
Unrealised fair value adjustment for loans and receivables 637
Fair value movement on investment property revaluation 3,989
TOTAL ADDITIONAL OPERATIONAL EXPENDITURE ITEMS 1,396
TOTAL SURPLUS 12,761

Prospective Statement of Financial PositionTop

  2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes
         
ASSETS        
Current assets        
Cash and cash equivalents 1,249 1,714 465  
Receivables and recoverables 42,333 42,834 501  
Prepayments 12,096 13,433 1,338  
Inventories 888 906 18  
Total current assets 56,566 58,887 2,322  
Non-current assets        
Other financial assets 10,473 11,954 1,481 1
Intangibles 28,936 28,578 (358)  
Investment properties 196,566 213,931 17,365 2
Property, plant & equipment 6,674,860 6,771,399 75,039 3
Investment in subsidiaries 3,809 5,071 1,262  
Investment in associates 19,504 19,465 (39)  
Total non-current assets 6,934,148 7,050,398 94,750  
TOTAL ASSETS 6,990,714 7,109,285 97,071  
LIABILITIES        
Current liabilities        
Exchange transactions, taxes and transfers payable 59,122 62,477 3,355 4
Revenue in advance 33,496 16,717 (16,779) 5
Borrowings 219,789 267,279 36,138  
Employee benefit liabilities and provisions 6,845 7,180 335  
Provision for other liabilities 11,790 7,972 (3,818)  
Total current liabilities 331,042 361,625 19,231  
         
Non-current liabilities        
Exchange transactions, taxes and transfers payable 630 630 -  
Borrowings 196,474 211,766 5,144  
Employee benefit liabilities and provisions 1,708 1,593 (115)  
Provisions for other liabilities 23,945 18,231 (5,714) 6
Total non-current liabilities 222,757 232,220 (685)  
TOTAL LIABILITIES 553,798 593,845 18,545  
EQUITY        
Accumulated funds and retained earnings 4,994,681 5,011,091 16,410  
Revaluation reserves 1,429,106 1,489,442 60,336 7
Hedging reserve 137 - (137)  
Fair value through other comprehensive revenue and expense reserve 63 106 43  
Restricted funds 12,928 14,801 1,873  
TOTAL EQUITY 6,436,915 6,515,440 78,525  
TOTAL EQUITY AND LIABILITIES 6,990,714 7,109,285 97,071  

Notes:

  1. Projected increase in New Zealand Local Government Funding Agency borrower notes.
  2. The investment property revaluation estimated for prior periods was less than the actual, in addition there is the expected movement in investment property revaluation for the 2016/17 year.
  3. Budgeted increase in capital expenditure spend for the 2016/17 year less depreciation. More information can be found in the individual Funding Impact Statements.
  4. Increased spend expected in 2016/17 has resulted in a higher than 2015/16 forecast level of trade payables.
  5. Movement in revenue in advance for the Housing Upgrade Project.
  6. Movement in weathertight homes provision.
  7. Variance between estimated revaluation movement for prior periods and the actual and expected revaulation movement from 2016/17.

Prospective Statement of Changes In EquityTop

  2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes
         
EQUITY – OPENING BALANCES        
Accumulated funds and retained earnings 4,972,119 4,999,468 27,349  
Revaluation reserves 1,429,106 1,383,201 (45,905)  
Hedging reserve 137 - (137)  
Fair value through other comprehensive revenue and expense reserve 63 106 43  
Restricted funds 12,389 13,663 1,274  
TOTAL EQUITY – OPENING BALANCE 6,413,814 6,396,438 (17,376)  
         
CHANGES IN EQUITY        
         
Retained earnings        
Net surplus for the year 23,101 12,761 (10,340)  
Transfer to restricted funds (4,518) (4,518) -  
Transfer from restricted funds 3,979 3,380 (599)  
         
Revaluation reserves         
Fair value movement - property, plant and equipment - net - 106,241 106,241  
         
Hedging reserve        
Share of other comprehensive income - - -  
         
Restricted Funds        
Transfer to retained earnings (3,979) (3,380) 599  
Transfer from retained earnings 4,518 4,518 -  
         
TOTAL COMPREHENSIVE REVENUE AND EXPENSE 23,101 119,002 95,901  
         
EQUITY – CLOSING BALANCES        
Accumulated funds and retained earnings 4,994,681 5,011,091 16,410  
Revaluation reserves 1,429,106 1,489,442 60,336  
Hedging reserve 137 - (137)  
Fair value through other comprehensive revenue and expense reserve 63 106 43  
Restricted funds 12,928 14,801 1,873  
         
TOTAL EQUITY – Closing balance 6,436,915 6,515,440 78,525  

Prospective Statement of Cash FlowsTop

  2015/16
LTP
$000
2016/17
AP
$000
Variance to
LTP
$000
Notes
         
CASH FLOWS FROM OPERATING ACTIVITIES        
Receipts from rates - Council 259,728 292,828 33,100  
Receipts from rates - Greater Wellington Regional Council 53,018 56,838 3,820 1
Receipts from activities and other revenue 136,363 100,082 (36,281) 2
Receipts from grants and subsidies - operating 36,026 33,017 (3,009)  
Receipts from grants and subsidies - capital 6,485 8,020 1,535  
Receipts from investment property lease rentals 9,135 9,335 200  
Cash paid to suppliers and employees (294,178) (298,973) (4,795)  
Rates paid to Greater Wellington Regional Council (53,018) (56,838) (3,820) 1
Grants paid (35,583) (42,672) (7,089)  
         
NET CASH FLOWS FROM OPERATING ACTIVITIES 117,976 101,637 (16,339)   
         
CASH FLOWS FROM INVESTING ACTIVITIES        
         
Dividends received 11,000 11,112 112  
Interest received 637 650 13  
Proceeds from sale of property, plant and equipment 2,650 4,600 1,950  
Purchase of intangibles (11,195) (5,102) 6,093 3
Purchase of property, plant and equipment (146,857) (165,583) (18,726)  
         
NET CASH FLOWS FROM INVESTING ACTIVITIES (143,765) (154,323) (10,558)  
         
CASH FLOWS FROM FINANCING ACTIVITIES        
         
New borrowings 239,327 298,783 59,456  
Repayment of borrowings (197,932) (227,516) (29,584)  
Interest paid on borrowings (22,763) (26,690) (3,927)  
         
NET CASH FLOWS FROM FINANCING ACTIVITIES 18,632 44,577 4,445  
         
Net increase/(decrease) in cash and cash equivalents (7,157) (8,109) (952)  
Cash and cash equivalents at beginning of year 8,406 9,823 1,417  
         
CASH AND CASH EQUIVALENTS AT END OF YEAR 1,249 1,714 465  

Notes:

  1. Wellington City Council collects rates on behalf of GWRC.
  2. Decrease in income from activites is detailed in the Funding Impact Statements by Activity.
  3. Decrease in budgeted spend on information technology-related items in 2016/17.

Prospective Statement of Changes in Restricted FundsTop

  OPENING BALANCE
2016/17
$000
DEPOSITS

$000
EXPENDITURE

$000
CLOSING BALANCE
2016/17
$000
Purpose
           
SPECIAL RESERVES AND FUNDS          
Reserve purchase and development fund 999 - - 999 Used to purchase and develop reserve areas within the city.
Economic initiatives development fund 2,976 3,000 (2,415) 3,561  
Insurance reserve 9,277 1,500 (950) 9,827 Allows the Council to meet the uninsured portion of insurance claims
Total special reserves and funds 13,252 4,500 (3,365) 14,387  
           
TRUSTS AND BEQUESTS          
A Graham Trust 3 - - 3 For the upkeep of a specific area of Karori Cemetery
A W Newton Bequest 319 16 (15) 320 For the benefit of art (Fine Arts Wellington), education (technical and other night schools) and athletics (rowing)
E A McMillan Estate 6 - - 6 For the benefit of the public library
E Pengelly Bequest 14 1 - 15 For the purchase of children's books
F L Irvine Smith Memorial 7 - - 7 For the purchase of books for the Khandallah Library
Greek NZ Memorial Association 5 - - 5 For the maintenance and upgrade of the memorial
Kidsarus 2 Donation 3 - - 3 For the purchase of children's books
Kirkaldie and Stains Donation 17 - - 17 For the beautification of the BNZ site
QEII Memorial Book Fund 20 1 - 21 For the purchase of books on the Commonwealth
Schola Cantorum Trust 7 - - 7 For the purchase of musical scores
Terawhiti Grant 10 - - 10 To be used on library book purchases
Total trusts and bequests 411 18 (15) 414  
Total restricted funds 13,663 4,518 (3,380) 14,801