Part C: Financial information

Financial statements

Forecast Statement of Comprehensive Revenue and Expense for the year 2019/20

  2018/19
LTP
$000
2019/20
AP
$000
Variance to
LTP
$000
Revenue      
Rates 310,705 325,857 15,152
Revenue from operating activities      
Development contributions 2,000 2,000 -
Grants, subsidies and reimbursements 40,708 32,367 (8,341)
Other operating activities 142,965 146,386 3,421
Investments revenue 24,196 25,861 1,665
Fair value gains 4,262 8,672 4,410
Other revenue 1,100 7,337 6,237
Finance revenue 13 13 -
Total Revenue 525,949 548,493 22,544
       
Expense      
Finance expense 24,918 24,902 (16)
Expenditure on operating activities 366,116 407,555 41,439
Depreciation and amortisation expense 117,158 124,573 7,415
Total Expense 508,192 557,030 48,838
       
Total operating surplus/(deficit) 17,757 (8,537) (26,294)
       
Share of equity accounted surplus from associates and jointly controlled entity - - -
       
Net surplus before taxation 17,757 (8,537) (26,294)
       
Income tax expense - - -
       
Net surplus/deficit 17,757 (8,537) (26,294)
       
Other comprehensive revenue and expense      
Items that will not be reclassified to surplus/(deficit)      
Revaluations:      
Fair value movement – property, plant and equipment – net - 204,856 204,856
       
Cash flow hedges:      
Fair value movement – net - - -
       
Fair value through other comprehensive income      
Fair value movement – financial assets – net - - -
       
Total other comprehensive revenue and expense - 204,856 204,856
       
Total Comprehensive Revenue and Expense 17,757 196,319 178,562

Prospective Statement of Financial Position for the year 2019/20Top

  2018/19
LTP
$000
2019/20
AP
$000
Variance to
LTP
$000
Assets      
Current assets      
Cash and cash equivalents 440 10,660 10,220
Other financial assets - 120,000 120,000
Receivables and recoverables 50,140 54,581 4,441
Prepayments 13,530 22,130 8,600
Inventories 974 1,617 643
Total current assets 65,084 208,988 143,904
       
Non-current assets      
Other financial assets 14,315 14,667 352
Intangibles 31,072 26,709 (4,363)
Investment properties 241,013 263,740 22,727
Property, plant & equipment 7,224,938 7,566,684 341,746
Investment in controlled entities 5,071 5,998 927
Investment in associates and jointly controlled entities 19,465 19,465 0
Total non-current assets 7,535,874 7,897,263 361,389
       
Total Assets 7,600,958 8,106,251 505,293
       
Liabilities      
Current liabilities      
Derivative financial liabilities - - -
Exchange transactions and transfers payable 72,154 63,734 (8,420)
Revenue in advance 14,388 15,277 889
Borrowings 125,000 126,000 1,000
Employee benefit liabilities and provisions 8,416 9,528 1,112
Provision for other liabilities 8,882 11,546 2,664
Total current liabilities 228,840 226,085 (2,755)
       
Non-current liabilities      
Derivative financial liabilities - 62,495 62,495
Exchange transactions and transfers payable 630 - (630)
Borrowings 506,309 676,962 170,653
Employee benefit liabilities 1,311 1,227 (84)
Provisions for other liabilities 23,384 32,129 8,745
Total non-current liabilities 531,634 772,813 241,179
       
Total Liabilities 760,474 998,898 238,424
       
Equity      
Accumulated funds and retained earnings 5,111,217 5,105,094 (6,123)
Revaluation reserves 1,716,629 2,045,106 328,477
Hedging reserve - (62,495) (62,495)
Fair value through other comprehensive revenue and expense reserve 2,888 3,744 856
Restricted funds 9,750 15,904 6,154
Total Equity 6,840,484 7,107,354 266,870
       
Total Equity and Liabilities 7,600,958 8,106,251 505,293

Prospective Statement of Changes in Equity for the year 2019/20Top

Estimate 2018/19
LTP
$000
2019/20
AP
$000
Variance to
LTP
$000
Equity – opening balances      
Accumulated funds and retained earnings 5,085,374 5,113,631 28,257
Revaluation reserves 1,840,250 1,840,250 0
Hedging reserve (25,362) (62,495) (37,133)
Fair value through other comprehensive revenue and expense reserve 3,744 3,744 0
Restricted funds 14,909 14,909 0
Total Equity – opening balances 6,918,915 6,910,040 (8,875)
       
Changes in Equity      
Retained earnings      
Net surplus for the year 28,257 (8,537) (36,793)
Transfer to restricted funds - - -
Transfer from restricted funds - - -
Transfer from revaluation reserves - - -
Transfer to revaluation reserves - - -
       
Revaluation reserves     -
Fair value movement – property, plant and equipment – net - 204,856 204,856
       
Transfer to retained earnings   - -
       
Hedging reserve     -
Movement in hedging reserve (37,133) - 37,133
       
Fair value through other comprehensive revenue and expense reserve     -
Movement in fair value   - -
       
Restricted Funds     -
Transfer to retained earnings - (1,006) (1,006)
Transfer from retained earnings - 2,001 2,001
       
Total comprehensive revenue and expense (8,876) 197,314 206,190
       
Net Equity – Closing Balances      
Accumulated funds and retained earnings 5,111,217 5,105,094 (6,123)
Revaluation reserves 1,716,629 2,045,106 328,477
Hedging reserve - (62,495) (62,495)
Fair value through other comprehensive revenue and expense reserve 2,888 3,744 856
Restricted funds 9,750 15,904 6,154
       
Total Equity – closing balances 6,840,484 7,107,354 266,870

Prospective Statement of Cash Flows for the year 2019/20Top

  2018/19
LTP
$000
2019/20
AP
$000
Variance to
LTP
$000
Cash flows from operating activities      
       
Receipts from rates – Council 321,022 326,123 5,101
Receipts from rates – Greater Wellington Regional Council 64,436 68,912 4,476
Receipts from activities and other income 132,378 120,915 (11,463)
Receipts from grants and subsidies – operating 6,673 6,886 213
Receipts from grants and subsidies – capital 34,035 25,481 (8,554)
Receipts from investment property lease rentals 11,215 11,215 -
Cash paid to suppliers and employees (333,722) (353,846) (20,124)
Rates paid to Greater Wellington Regional Council (64,436) (68,912) (4,476)
Grants paid (38,777) (39,476) (699)
Net GST (paid) / received      
Net cash flows from operating activities 132,824 97,298 (35,526)
       
Cash flows from investing activities      
Dividends received 12,981 14,646 1,665
Interest received 13 13 -
Proceeds from sale of investment properties - - -
Proceeds from sale of property, plant and equipment 2,000 13,000 11,000
Increase in investments - - -
Loan advances made - - -
Purchase of investment properties - - -
Purchase of Intangibles (6,918) (6,031) 887
Purchase of property, plant and equipment (239,010) (242,851) (3,841)
Net cash flows from investing activities (230,934) (221,223) 9,711
       
Cash flows from financing activities      
New borrowings 250,815 244,462 (6,353)
Repayment of borrowings (126,000) (125,000) 1,000
Interest paid on borrowings (26,915) (24,902) 2,013
Net cash flows from financing activities 97,900 94,560 (3,340)
       
Net increase/(decrease) in cash and cash equivalents (210) (29,365) (29,155)
Cash and cash equivalents at beginning of year 650 160,025 159,375
Cash and cash equivalents at end of year 440 130,660 130,220

Prospective statement of changes in restricted funds for the period ended 2019/20Top

  Opening balance
2019/20
$000
Deposits
$000
Expenditure
$000
Closing balance
2019/20
$000
Purpose
Special reserves and funds          
City growth fund - - - -  
Other funds 3,043     3,043  
Insurance reserve 11,406 1,982 (991) 12,397 Allows the Council to meet the uninsured portion of insurance claims
Total special reserves and funds 14,449 1,982 (991) 15,440  
           
Trusts and bequests          
A Graham Trust 3 - - 3 For the upkeep of a specific area of Karori Cemetery
A W Newton Bequest 348 17 (15) 350 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 16 1 - 17 For the purchase of children's books
F L Irvine Smith Memorial 8 - - 8 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 4 - - 4 For the purchase of children's books
Kirkaldie and Stains Donation 17 - - 17 For the beautification of the BNZ site
QEII Memorial Book Fund 22 1 - 23 For the purchase of books on the Commonwealth
Schola Cantorum Trust 8 - - 8 For the purchase of musical scores
Terawhiti Grant 10 - - 10 To be used on library book purchases
Wellington Beautifying Society Bequest 14 - - 14 To be used on library book purchases
Total trusts and bequests 460 19 (15) 464  
           
Total restricted funds 14,909 2,001 (1,006) 15,904  

EXPLANATION OF SURPLUS/DEFICITTop

The following are items that are presented in the Prospective Statement of Comprehensive Revenue and Expense but do not offset rates.

  $000
Balanced Budget 0
   
Depreciation not funded by rates:
NZTA Transport funded projects (14,719)
General (60)
Moa Point sewerage treatment plant (1,680)
Decommissioned Living Earth joint venture plant (230)
Wellington Waterfront Limited Depreciation (2,550)
Civic Campus (632)
Total depreciation not funded by rates (19,871)
   
Revenue received for capital purposes:
Funding received from external parties for major capital expenditure projects  
NZTA capital funding 24,506
Housing ring-fenced surplus (26,044)
Waste minimisation surplus (643)
Development contributions 2,000
Bequests, trust and other external funding 7,212
Total Revenue received for capital purposes 7,030
   
Items funded from prior year surpluses:
City Growth Fund (1,750)
Civic Campus (2,200)
Dwell Housing Trust (60)
Total items funded from prior year surplus (4,010)
   
Additional operational expenditure items:
Operational expenditure items identified as equitable to be funded through other funding mechanisms  
Alex Moore Park 55
Cable Car 125
Odyssey – related 221
Roading projects (2,370)
Toitu Poneke 80
Weathertight Homes funding 7,677
Westpac Stadium 400
Lets Get Wellington Moving (1,269)
Convention and Exhibition Centre construction phase (1,183)
Shelly Bay Grant (1,000)
Technology Infrastructure and Software 481
Fair value movement on investment property revaluation 8,672
Library (3,575)
Total additional items 8,314
   
Total Deficit (8,537)