Funding Impact and Financial Statements

Funding Impact Statement
​— whole of council


  AP
​2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
Sources of operating funding          
General rates, uniform annual general charges, rates penalties 131,000 136,353 134,936 (1,417)  
Targeted rates (other than a targeted rate for water supply) 103,552 108,242 106,451 (1,791)  
Subsidies and grants for operating purposes 7,250 6,873 7,714 841  
Fees, charges, and targeted rates for water supply* 113,761 112,956 134,566 21,610  
Interest and dividends from investments 9,908 9,308 11,044 1,736 1
Local authorities fuel tax, fines, infringement fees, and other receipts 10,817 12,645 9,541 (3,104)  
Total operating funding (A) 376,288 386,377 404,252 17,875  
           
Applications of operating funding          
Payments to staff and suppliers 245,000 241,197 269,637 28,440  
Finance costs 21,965 25,096 23,041 (2,055) 2
Internal charges and overheads applied (0) - - -  
Other operating funding applications 29,623 30,488 28,958 (1,530)  
Total applications of operating funding (B) 296,588 296,781 321,636 24,855  
           
Surplus (deficit) of operating funding (A - B) 79,700 89,596 82,616 (6,980)  
           
Sources of capital funding          
Subsidies and grants for capital expenditure 42,495 39,746 43,375 3,629  
Development and financial contributions 5,000 5,000 2,000 (3,000) 3
Increase (decrease) in debt 20,893 25,109 34,964 9,855  
Gross proceeds from sales of assets 15,075 15,075 4,050 (11,025) 4
Lump sum contributions - - - -  
Total sources of capital funding (C) 83,463 84,930 84,389 (541)  
           
Applications of capital funding          
Capital expenditure          
- to meet additional demand 1,634 3,957 2,558 (1,399)  
- to improve the level of service 53,991 57,776 69,965 12,189  
- to replace existing assets 84,094 98,610 79,480 (19,130)  
Increase (decrease) in reserves 23,444 14,183 15,002 819  
Increase (decrease) in investments - - - -  
Total applications of capital funding (D) 163,163 174,526 167,005 (7,521)  
           
Surplus (deficit) of capital funding (C - D) (79,700) (89,596) (82,616) 6,980  
           
Funding balance ((A - B) + (C - D)) - - - -  
           
Expenses for this activity grouping include the following depreciation/amortisation charge 92,109 101,138 102,165 1,027  
*Only the Water activity includes metered water rates
Notes:
1. Our expectation of Wellington International Airport Limited dividends has been increased to 2012/13 actual levels.
2. Forecast interest rates are lower than was forecast in the 2012–22 Long-term Plan for the same period, along with lower than expected debt levels.  
3. The expected development contributions income in 2014/15 has been reduced to reflect actual current income and changes to the Development Contributions Policy. 
4. Changes in the timings of Wellington Waterfront Limited proceeds offset by the inclusion of expected land sales included in the 2014/15 Annual Plan.

Funding Impact Statement
​​— governance, information and engagementTop


  AP
​2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
Sources of operating funding          
General rates, uniform annual general charges, rates penalties 16,356 15,449 14,214 (1,235)  
Targeted rates (other than a targeted rate for water supply) - - - -  
Subsidies and grants for operating purposes - - - -  
Fees, charges, and targeted rates for water supply* 733 407 565 158  
Interest and dividends from investments - - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts - - - -  
Total operating funding (A) 17,089 15,856 14,779 (1,077)  
           
Applications of operating funding          
Payments to staff and suppliers 8,579 8,217 7,820 (397) 1
Finance costs 14 1 15 14  
Internal charges and overheads applied 8,156 7,573 6,570 (1,003) 2
Other operating funding applications 267 10 313 303 3
Total applications of operating funding (B) 17,016 15,801 14,718 (1,083)  
           
Surplus (deficit) of operating funding (A - B) 73 55 61 6  
           
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 110 - - -  
Increase (decrease) in reserves (37) 55 61 6  
Increase (decrease) in investments - - - -  
Total applications of capital funding (D) 73 55 61 6  
           
Surplus (deficit) of capital funding (C - D) (73) (55) (61) (6)  
           
Funding balance ((A - B) + (C - D)) - - - -  
           
Expenses for this activity grouping include the following depreciation/amortisation charge 73 55 61 6  
*Only the Water activity includes metered water rates
Notes:
1. Differences in inflationary assumptions between the 2012–22 Long-term Plan and 2014/15 Annual Plan and reductions in costs associated with the operations of City Archives. ​
2. There has been a concerted effort to reduce back office costs that has resulted in a decrease to internal charges and overheads applied. This reduction has been spread across all activity areas. ​
​3. The second year or the planned two year funding for the Smart Energy Capital Iniative included as part of the 2013/14 Annual Plan has been topped up with additional funding in 2014/15 by way of Mayor Wade-Brown's decision to forgo her Wellington International Airport Limited directors fees and redirect them into the Initiative.

Funding Impact Statement
​​— Māori and Mana Whenua PartnershipsTop


  AP
​2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Sources of operating funding        
General rates, uniform annual general charges, rates penalties 225 252 225 (27)
Targeted rates (other than a targeted rate for water supply) - - - -
Subsidies and grants for operating purposes - - - -
Fees, charges, and targeted rates for water supply* - - - -
Interest and dividends from investments - - - -
Local authorities fuel tax, fines, infringement fees, and other receipts - - - -
Total operating funding (A) 225 252 225 (27)
         
Applications of operating funding        
Payments to staff and suppliers 214 243 214 (29)
Finance costs 1 - 1 1
Internal charges and overheads applied 8 9 8 (1)
Other operating funding applications - - - -
Total applications of operating funding (B) 223 252 223 (29)
         
Surplus (deficit) of operating funding (A - B) 2 - 2 2
         
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 2 - 2 2
Increase (decrease) in investments - - - -
Total applications of capital funding (D) 2 - 2 2
         
Surplus (deficit) of capital funding (C - D) (2) - (2) (2)
         
Funding balance ((A - B) + (C - D)) - - - -
         
Expenses for this activity grouping include the following depreciation/amortisation charge 2 - 2 2
*Only the Water activity includes metered water rates

Funding Impact Statement
​​— gardens, beaches and green open spacesTop


  AP
​2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
Sources of operating funding          
General rates, uniform annual general charges, rates penalties 26,540 28,560 27,267 (1,293)  
Targeted rates (other than a targeted rate for water supply) 436 427 632 205  
Subsidies and grants for operating purposes 637 583 671 88  
Fees, charges, and targeted rates for water supply * 1,118 1,261 1,314 53  
Interest and dividends from investments 4,910 5,457 5,101 (356)  
Local authorities fuel tax, fines, infringement fees, and other receipts - - - -  
Total operating funding (A) 33,641 36,288 34,985 (1,303)  
           
Applications of operating funding          
Payments to staff and suppliers 16,980 17,269 17,767 498 1
Finance costs 1,674 2,200 1,834 (366)  
Internal charges and overheads applied 11,233 12,489 11,520 (969)  
Other operating funding applications 80 100 100 -  
Total applications of operating funding (B) 29,967 32,058 31,221 (837)  
           
Surplus (deficit) of operating funding (A - B) 3,674 4,230 3,764 (466)  
           
Sources of capital funding          
Subsidies and grants for capital expenditure 1,080 600 620 20  
Development and financial contributions 1,099 1,099 183 (916)  
Increase (decrease) in debt (2,071) (1,591) 411 2,002  
Gross proceeds from sales of assets - - - -  
Lump sum contributions - - - -  
Total sources of capital funding (C) 108 108 1,214 1,106  
           
Applications of capital funding          
Capital expenditure          
- to meet additional demand 53 53 34 (19)  
- to improve the level of service 55 55 1,180 1,125 2
- to replace existing assets 2,545 2,498 1,791 (707) 2
Increase (decrease) in reserves 1,129 1,732 1,973 241  
Increase (decrease) in investments - - - -  
Total applications of capital funding (D) 3,782 4,338 4,978 640  
           
Surplus (deficit) of capital funding (C - D) (3,674) (4,230) (3,764) 466  
           
Funding balance ((A - B) + (C - D)) - - - 0  
           
Expenses for this activity grouping include the following depreciation/amortisation charge 3,952 4,456 4,042 (414)  
*Only the Water activity includes metered water rates
Notes:
1. Council agreed to provide $350k to the Lyall Bay Surf Club towards the construction of new clubrooms. This funding was agreed for 2013/14 in the 2012–22 Long-term Plan however it has been deferred till 2014/15 due to project delays. Funding for maintenance of Memorial Park (Buckle Street) included in the 2014/15 Annual Plan.
​2. Council approved additional capital expenditure to implement initiatives identified in the Council's open space and recreation framework, “Our Capital Spaces”. Additional expenditure has also been included for a new cycle and walkway in Kilbirnie and the repair of coastal areas damaged by the major storms in 2013. Expenditure for the proposed Children's Garden, funded by the Charles Plimmer Bequest, has been reclassified more accurately as upgrade funding.

Funding Impact Statement ​
​— waste reduction and energy conservationTop


  AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
Sources of operating funding          
General rates, uniform annual general charges, rates penalties 451 2,108 404 (1,704)  
Targeted rates (other than a targeted rate for water supply) - - - -  
Subsidies and grants for operating purposes - - - -  
Fees, charges, and targeted rates for water supply* 12,393 11,429 12,926 1,497 1
Interest and dividends from investments - 310 - (310)  
Local authorities fuel tax, fines, infringement fees, and other receipts - 7 - (7)  
Total operating funding (A) 12,844 13,854 13,330 (524)  
           
Applications of operating funding          
Payments to staff and suppliers 11,112 12,180 11,873 (307) 2
Finance costs 1,051 929 1,005 76  
Internal charges and overheads applied 111 (73) (112) (39)  
Other operating funding applications 5 - 5 5  
Total applications of operating funding (B) 12,279 13,036 12,771 (265)  
           
Surplus (deficit) of operating funding (A - B) 565 818 559 (259)  
           
Sources of capital funding          
Subsidies and grants for capital expenditure - - - -  
Development and financial contributions - - - -  
Increase (decrease) in debt 91 - 67 67  
Gross proceeds from sales of assets - - - -  
Lump sum contributions - - - -  
Total sources of capital funding (C) 91 - 67 67  
           
Applications of capital funding          
Capital expenditure          
- to meet additional demand - - - -  
- to improve the level of service 91 - 67 67  
- to replace existing assets 963 7,315 709 (6,606) 3
Increase (decrease) in reserves (398) (6,497) (150) 6,347  
Increase (decrease) in investments - - - -  
Total applications of capital funding (D) 656 818 626 (192)  
           
Surplus (deficit) of capital funding (C - D) (565) (818) (559) 259  
           
Funding balance ((A - B) + (C - D)) - - - -  
           
Expenses for this activity grouping include the following depreciation/amortisation charge 565 818 435 (383)  
*Only the Water activity includes metered water rates
Notes:
1. The required usage of the Landfill Levy Reserve, which is used to help offset operating costs, was increased after its utilisation was re-assessed.
2. Contract negotiations for several waste and recycling services has delivered lower operating costs than anticipated in the 2012–22 Long-term Plan. ​
​3. An extended resource consent process has resulted in a delay to the Southern Landfill Stage 4 extension. The capital programme was re-aligned to project expectations as part of the 2013/14 Annual Plan.

Funding Impact Statement
​​— waterTop


  AP
​2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
Sources of operating funding          
General rates, uniform annual general charges, rates penalties - - - -  
Targeted rates (other than a targeted rate for water supply) 24,804 26,902 25,408 (1,494)  
Subsidies and grants for operating purposes - - - -  
Fees, charges, and targeted rates for water supply* 13,366 12,856 13,912 1,056 1
Interest and dividends from investments - - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts - - - -  
Total operating funding (A) 38,170 39,758 39,320 (438)  
           
Applications of operating funding          
Payments to staff and suppliers 21,373 21,298 21,547 249 2
Finance costs 1,912 2,436 2,104 (332)  
Internal charges and overheads applied 1,704 1,824 1,522 (302)  
Other operating funding applications - - - -  
Total applications of operating funding (B) 24,989 25,558 25,173 (385)  
           
Surplus (deficit) of operating funding (A - B) 13,181 14,200 14,147 (53)  
           
Sources of capital funding          
Subsidies and grants for capital expenditure - - - -  
Development and financial contributions 1,231 1,231 671 (560)  
Increase (decrease) in debt 988 3,947 2,520 (1,427)  
Gross proceeds from sales of assets - - - -  
Lump sum contributions - - - -  
Total sources of capital funding (C) 2,219 5,178 3,191 (1,987)  
           
Applications of capital funding          
Capital expenditure          
- to meet additional demand 274 399 358 (41)  
- to improve the level of service 1,945 4,779 2,833 (1,946) 3
- to replace existing assets 9,962 11,000 9,104 (1,896) 3
Increase (decrease) in reserves 3,219 3,200 5,043 1,843  
Increase (decrease) in investments - - - -  
Total applications of capital funding (D) 15,400 19,378 17,338 (2,040)  
           
Surplus (deficit) of capital funding (C - D) (13,181) (14,200) (14,147) 53  
           
Funding balance ((A - B) + (C - D)) - - - -  
           
Expenses for this activity grouping include the following depreciation/amortisation charge 13,744 14,808 14,739 (69)  
*Only the Water activity includes metered water rates
Notes:
1. Water rates revenue was increased by 4 percent in 2013/14 and again by 4 percent in 2014/15. In the 2012–22 Long-term Plan water rates were held at 2012/13 levels for the duration of the Plan.
2. Reactive maintenance budgets were increased as part of the 2013/14 Annual Plan. This increase has been partially offset by lower bulk water costs than budgeted in the 2012–22 Long-term Plan. ​
​3. The Prince of Wales Reservoir has been deferred to the 2015–25 Long-term Plan, while alternatives are being assessed.

Funding Impact Statement
​​— wastewaterTop


  AP
​2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
Sources of operating funding          
General rates, uniform annual general charges, rates penalties - - - -  
Targeted rates (other than a targeted rate for water supply) 35,370 36,676 36,257 (419)  
Subsidies and grants for operating purposes - - - -  
Fees, charges, and targeted rates for water supply* 1,210 1,328 1,227 (101)  
Interest and dividends from investments - - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts - - - -  
Total operating funding (A) 36,580 38,004 37,484 (520)  
           
Applications of operating funding          
Payments to staff and suppliers 20,715 19,017 21,070 2,053 1
Finance costs 3,402 3,988 3,577 (411)  
Internal charges and overheads applied 3,821 5,390 3,541 (1,849)  
Other operating funding applications - - - -  
Total applications of operating funding (B) 27,938 28,395 28,188 (207)  
           
Surplus (deficit) of operating funding (A - B) 8,642 9,609 9,296 (313)  
           
Sources of capital funding          
Subsidies and grants for capital expenditure - - - -  
Development and financial contributions 1,007 1,007 549 (458)  
Increase (decrease) in debt (822) (797) (377) 420  
Gross proceeds from sales of assets - - - -  
Lump sum contributions - - - -  
Total sources of capital funding (C) 185 210 172 (38)  
           
Applications of capital funding          
Capital expenditure          
- to meet additional demand 185 210 172 (38)  
- to improve the level of service - - - -  
- to replace existing assets 7,226 8,185 7,573 (612) 2
Increase (decrease) in reserves 1,416 1,424 1,723 299  
Increase (decrease) in investments - - - -  
Total applications of capital funding (D) 8,827 9,819 9,468 (351)  
           
Surplus (deficit) of capital funding (C - D) (8,642) (9,609) (9,296) 313  
           
Funding balance ((A - B) + (C - D)) - - - -  
           
Expenses for this activity grouping include the following depreciation/amortisation charge 12,538 14,156 13,416 (740)  
*Only the Water activity includes metered water rates
Notes:
1. Budgets for network and pump station maintenance were increased as part of the 2013/14 Annual Plan. Treatment plant operational costs are higher than anticipated in the 2012–22 Long-term Plan primarily due to movements in electricity costs.
​2. The variance is due in large part to the availability and use of improved asset information and asset management systems.

Funding Impact Statement
​​— stormwaterTop


  AP
​2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
Sources of operating funding          
General rates, uniform annual general charges, rates penalties - - - -  
Targeted rates (other than a targeted rate for water supply) 18,089 18,757 18,648 (109)  
Subsidies and grants for operating purposes 40 42 120 78  
Fees, charges, and targeted rates for water supply* 9 9 9 -  
Interest and dividends from investments - - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts - - - -  
Total operating funding (A) 18,138 18,808 18,777 (31)  
           
Applications of operating funding          
Payments to staff and suppliers 7,486 5,223 7,432 2,209 1
Finance costs 2,612 3,446 2,875 (571)  
Internal charges and overheads applied 1,600 3,133 1,473 (1,660)  
Other operating funding applications - - - -  
Total applications of operating funding (B) 11,698 11,802 11,780 (22)  
           
Surplus (deficit) of operating funding (A - B) 6,440 7,006 6,997 (9)  
           
Sources of capital funding          
Subsidies and grants for capital expenditure - - - -  
Development and financial contributions 107 107 58 (49)  
Increase (decrease) in debt (7) 8 499 491  
Gross proceeds from sales of assets - - - -  
Lump sum contributions - - - -  
Total sources of capital funding (C) 100 115 557 442  
           
Applications of capital funding          
Capital expenditure          
- to meet additional demand 100 115 106 (9)  
- to improve the level of service - - 451 451 2
- to replace existing assets 3,912 4,498 3,697 (801) 2
Increase (decrease) in reserves 2,528 2,508 3,300 792  
Increase (decrease) in investments - - - -  
Total applications of capital funding (D) 6,540 7,121 7,554 433  
           
Surplus (deficit) of capital funding (C - D) (6,440) (7,006) (6,997) 9  
           
Funding balance ((A - B) + (C - D)) - - - -  
           
Expenses for this activity grouping include the following depreciation/amortisation charge 6,440 7,006 6,997 (9)  
*Only the Water activity includes metered water rates
Notes:
1. Budgets for network and pump station maintenance were increased as part of the 2013/14 Annual Plan. Rates costs have also increased as a result of the 2012/13 rates valuation process.
​2. A review of Stormwater renewals has resulted in a reclassification of capital expenditure splits between level of service and replacement of existing assets. Lower inflation on capital related costs has been budgeted than in the 2012–22 Long-term Plan. Part of the variance is due to the enhancement of asset management planning systems and improved asset information.

Funding Impact Statement ​
​— conservation attractionsTop


  AP
​2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Sources of operating funding        
General rates, uniform annual general charges, rates penalties 5,779 5,839 6,126 287
Targeted rates (other than a targeted rate for water supply) - - - -
Subsidies and grants for operating purposes - - - -
Fees, charges, and targeted rates for water supply* - - - -
Interest and dividends from investments - - - -
Local authorities fuel tax, fines, infringement fees, and other receipts - - - -
Total operating funding (A) 5,779 5,839 6,126 287
         
Applications of operating funding        
Payments to staff and suppliers 127 145 138 (7)
Finance costs 708 800 755 (45)
Internal charges and overheads applied 268 264 264 0
Other operating funding applications 3,590 3,499 3,632 133
Total applications of operating funding (B) 4,693 4,708 4,789 81
         
Surplus (deficit) of operating funding (A - B) 1,086 1,131 1,337 206
         
Sources of capital funding        
Subsidies and grants for capital expenditure 412 133 129 (4)
Development and financial contributions - - - -
Increase (decrease) in debt 1,239 400 387 (13)
Gross proceeds from sales of assets - - - -
Lump sum contributions - - - -
Total sources of capital funding (C) 1,651 533 516 (17)
         
Applications of capital funding        
Capital expenditure        
- to meet additional demand - - - -
- to improve the level of service 1,651 533 516 (17)
- to replace existing assets 241 279 278 (1)
Increase (decrease) in reserves 845 852 1,059 207
Increase (decrease) in investments - - - -
Total applications of capital funding (D) 2,737 1,664 1,853 189
         
Surplus (deficit) of capital funding (C - D) (1,086) (1,131) (1,337) (206)
         
Funding balance ((A - B) + (C - D)) - - - -
         
Expenses for this activity grouping include the following depreciation/amortisation charge 1,086 1,131 1,337 206
*Only the Water activity includes metered water rates

Funding Impact Statement
— city promotions and business supportTop


  AP
​2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
Sources of operating funding          
General rates, uniform annual general charges, rates penalties 4,311 4,997 5,207 210  
Targeted rates (other than a targeted rate for water supply) 14,583 14,804 15,012 208  
Subsidies and grants for operating purposes - - - -  
Fees, charges, and targeted rates for water supply* 186 - 14,035 14,035  
Interest and dividends from investments 50 - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts - - - -  
Total operating funding (A) 19,130 19,801 34,254 14,453  
           
Applications of operating funding          
Payments to staff and suppliers 7,160 5,639 26,079 20,440 1
Finance costs 682 378 710 332  
Internal charges and overheads applied 2,192 2,260 1,848 (412)  
Other operating funding applications 7,523 9,160 7,553 (1,607) 2
Total applications of operating funding (B) 17,557 17,437 36,190 18,753  
           
Surplus (deficit) of operating funding (A - B) 1,573 2,364 (1,936) (4,300)  
           
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 765 1,186 1,341 155  
Increase (decrease) in reserves 808 1,178 (3,277) (4,455)  
Increase (decrease) in investments - - - -  
Total applications of capital funding (D) 1,573 2,364 (1,936) (4,300)  
           
Surplus (deficit) of capital funding (C - D) (1,573) (2,364) 1,936 4,300  
           
Funding balance ((A - B) + (C - D)) - - - -  
           
Expenses for this activity grouping include the following depreciation/amortisation charge 1,573 2,364 1,618 (746)  
*Only the Water activity includes metered water rates
Notes:
1. Funding has been included for the Economic Development Fund established as part of the 2013/14 Annual Plan, a refocusing of resources towards economic development and funding for the Under 20 FIFA World Cup has been brought forward from 2015/16 as the event will be held earlier than the original start date. Funding for the Regional Amenities Fund has been reallocated to the Economic Development Fund. Costs have been reviewed and some reclassified from ‘Other operating funding applications’ to ‘Payments to staff and suppliers’. ​
​2. Reductions in funding for Positively Wellington Tourism were approved in the 2013/14 Annual Plan. Further reductions have been made and some costs have also been reviewed and reclassified from 'Other operating funding applications' to ‘Payments to staff and suppliers’.

Funding Impact Statement ​
​— arts and culture activitiesTop


  AP
​2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
Sources of operating funding          
General rates, uniform annual general charges, rates penalties 11,132 12,778 11,947 (831)  
Targeted rates (other than a targeted rate for water supply) 5,216 5,095 5,243 148  
Subsidies and grants for operating purposes 402 443 430 (13)  
Fees, charges, and targeted rates for water supply* 611 664 583 (81)  
Interest and dividends from investments 341 170 72 (98)  
Local authorities fuel tax, fines, infringement fees, and other receipts - - - -  
Total operating funding (A) 17,702 19,150 18,275 (875)  
           
Applications of operating funding          
Payments to staff and suppliers 3,219 3,359 3,510 151  
Finance costs 215 259 211 (48)  
Internal charges and overheads applied 935 1,588 1,049 (539)  
Other operating funding applications 12,484 13,139 12,680 (459) 1
Total applications of operating funding (B) 16,853 18,345 17,450 (895)  
           
Surplus (deficit) of operating funding (A - B) 849 805 825 20  
           
Sources of capital funding          
Subsidies and grants for capital expenditure - - - -  
Development and financial contributions - - - -  
Increase (decrease) in debt 25 25 26 1  
Gross proceeds from sales of assets - - - -  
Lump sum contributions - - - -  
Total sources of capital funding (C) 25 25 26 1  
           
Applications of capital funding          
Capital expenditure          
- to meet additional demand - - - -  
- to improve the level of service 25 25 26 1  
- to replace existing assets 1 2 1 (1)  
Increase (decrease) in reserves 848 803 824 21  
Increase (decrease) in investments - - - -  
Total applications of capital funding (D) 874 830 851 21  
           
Surplus (deficit) of capital funding (C - D) (849) (805) (825) (20)  
           
Funding balance ((A - B) + (C - D)) - - - -  
           
Expenses for this activity grouping include the following depreciation/amortisation charge 849 805 825 20  
*Only the Water activity includes metered water rates
Notes:
​1. Increased grant funding for the Wellington Museums Trust and an increase in funding for Wellington Orchestra that was approved as part of the 2013/14 Annual Plan. Funding for the Regional Amenities Fund reallocated to the Economic Development Fund.

Funding Impact Statement
​​— recreation promotion and supportTop


  AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
Sources of operating funding          
General rates, uniform annual general charges, rates penalties 24,661 24,478 24,001 (477)  
Targeted rates (other than a targeted rate for water supply) 776 883 1,039 156  
Subsidies and grants for operating purposes 396 120 398 278  
Fees, charges, and targeted rates for water supply* 11,353 12,267 11,483 (784) 1
Interest and dividends from investments 1,005 1,074 1,051 (23)  
Local authorities fuel tax, fines, infringement fees, and other receipts - - - -  
Total operating funding (A) 38,191 38,822 37,972 (850)  
           
Applications of operating funding          
Payments to staff and suppliers 17,116 17,418 16,950 (468) 2
Finance costs 3,902 3,966 3,725 (241)  
Internal charges and overheads applied 9,770 9,772 9,411 (361)  
Other operating funding applications 400 400 650 250 3
Total applications of operating funding (B) 31,188 31,556 30,736 (820)  
           
Surplus (deficit) of operating funding (A - B) 7,003 7,266 7,236 (30)  
           
Sources of capital funding          
Subsidies and grants for capital expenditure - - - -  
Development and financial contributions 466 466 - (466)  
Increase (decrease) in debt 1,469 1,757 457 (1,300)  
Gross proceeds from sales of assets - - - -  
Lump sum contributions - - - -  
Total sources of capital funding (C) 1,935 2,223 457 (1,766)  
           
Applications of capital funding          
Capital expenditure          
- to meet additional demand 871 908 123 (785) 4
- to improve the level of service 1,064 849 334 (515) 4
- to replace existing assets 2,902 2,851 2,564 (287) 5
Increase (decrease) in reserves 4,101 4,881 4,672 (209)  
Increase (decrease) in investments - - - -  
Total applications of capital funding (D) 8,938 9,489 7,693 (1,796)  
           
Surplus (deficit) of capital funding (C - D) (7,003) (7,266) (7,236) 30  
           
Funding balance ((A - B) + (C - D)) - - - 0  
           
Expenses for this activity grouping include the following depreciation/amortisation charge 7,091 7,355 7,324 (31)  
*Only the Water activity includes metered water rates
Notes:
1. Reduction in revenue forecast from swimming pools. This reflects current trends and a change in the timing of the closure for the Keith Spry Pool upgrade.
2. Reductions in swimming pool operating expenditure due to a change in the timing of the closure for the Keith Spry Pool upgrade.
3. Increased grant funding for the Basin Reserve Trust for increased ground maintenance costs.
4. The new artificial sportsfield planned for the Tawa/Grenada area has been deferred.
​5. Some sportsfields capital expenditure has been reclassified more accurately as upgrade funding.

Funding Impact Statement
​​— community supportTop


  AP
​2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
Sources of operating funding          
General rates, uniform annual general charges, rates penalties 22,293 22,978 21,755 (1,223)  
Targeted rates (other than a targeted rate for water supply) 4,245 4,665 4,179 (486)  
Subsidies and grants for operating purposes 1,023 1,082 1,296 214  
Fees, charges, and targeted rates for water supply* 20,635 18,937 22,057 3,120 1
Interest and dividends from investments 1,363 1,289 1,287 (2)  
Local authorities fuel tax, fines, infringement fees, and other receipts 851 904 659 (245)  
Total operating funding (A) 50,410 49,855 51,233 1,378  
           
Applications of operating funding          
Payments to staff and suppliers 24,926 26,315 26,166 (149)  
Finance costs (602) (1,704) (725) 979  
Internal charges and overheads applied 12,416 12,528 10,410 (2,118)  
Other operating funding applications 3,574 3,162 3,160 (2)  
Total applications of operating funding (B) 40,314 40,301 39,011 (1,290)  
           
Surplus (deficit) of operating funding (A - B) 10,096 9,554 12,222 2,668  
           
Sources of capital funding          
Subsidies and grants for capital expenditure 30,739 27,705 32,036 4,331  
Development and financial contributions 88 88 - (88)  
Increase (decrease) in debt (88) (89) 250 339  
Gross proceeds from sales of assets - - - -  
Lump sum contributions - - - -  
Total sources of capital funding (C) 30,739 27,704 32,286 4,582  
           
Applications of capital funding          
Capital expenditure          
- to meet additional demand - - - -  
- to improve the level of service 25,694 27,730 32,284 4,554 2
- to replace existing assets 7,031 7,909 6,915 (994) 3
Increase (decrease) in reserves 8,110 1,619 5,309 3,690  
Increase (decrease) in investments - - - -  
Total applications of capital funding (D) 40,835 37,258 44,508 7,250  
           
Surplus (deficit) of capital funding (C - D) (10,096) (9,554) (12,222) (2,668)  
           
Funding balance ((A - B) + (C - D)) - - - -  
           
Expenses for this activity grouping include the following depreciation/amortisation charge 13,707 13,174 15,730 2,556  
*Only the Water activity includes metered water rates
Notes:
1. Increased forecast revenue from housing operations.
2. The timing of the Housing Upgrade Project has been revised. Johnsonville library funding brought forward from 2015/16 ​
​3. The renewal of the Library operating system has been deferred by one year. This has been partly offset by an increase in the cost of renewing Council Housing assets. Part of the variance is due to the enhancement of asset management planning systems and improved asset information.

Funding Impact Statement
​​— public health and safetyTop


  AP
​2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
Sources of operating funding          
General rates, uniform annual general charges, rates penalties 7,713 9,023 8,266 (757)  
Targeted rates (other than a targeted rate for water supply) - - - -  
Subsidies and grants for operating purposes 10 11 25 14  
Fees, charges, and targeted rates for water supply* 3,436 3,487 3,962 475 1
Interest and dividends from investments 668 698 676 (22)  
Local authorities fuel tax, fines, infringement fees, and other receipts 48 61 52 (9)  
Total operating funding (A) 11,875 13,280 12,981 (299)  
           
Applications of operating funding          
Payments to staff and suppliers 7,860 7,877 8,284 407 2
Finance costs 70 94 76 (18)  
Internal charges and overheads applied 3,292 4,609 3,980 (629)  
Other operating funding applications 29 26 129 103  
Total applications of operating funding (B) 11,251 12,606 12,469 (137)  
           
Surplus (deficit) of operating funding (A - B) 624 674 512 (162)  
           
Sources of capital funding          
Subsidies and grants for capital expenditure - 424 - (424)  
Development and financial contributions 15 15 - (15)  
Increase (decrease) in debt 95 (232) 206 438  
Gross proceeds from sales of assets - - - -  
Lump sum contributions - - - -  
Total sources of capital funding (C) 110 207 206 (1)  
           
Applications of capital funding          
Capital expenditure          
- to meet additional demand 24 25 - (25)  
- to improve the level of service 86 182 206 24  
- to replace existing assets 606 728 1,104 376 3
Increase (decrease) in reserves 18 (54) (592) (538)  
Increase (decrease) in investments - - - -  
Total applications of capital funding (D) 734 881 718 (163)  
           
Surplus (deficit) of capital funding (C - D) (624) (674) (512) 162  
           
Funding balance ((A - B) + (C - D)) - - - -  
           
Expenses for this activity grouping include the following depreciation/amortisation charge 639 680 527 (153)  
*Only the Water activity includes metered water rates
Notes:
1. Increased income from liquor licensing due to fee increases and extra fees for the new District Licensing Committees following legislative changes in the Sale and Supply of Alcohol Act 2012 (Act).
2. Liquor licensing operating costs have increased due to the establishment of District Licensing Committee following legislative changes in the Sale and Supply of Alcohol Act 2012 (Act).
​3. Council agreed to provide public toilets in the planned new Lyall Bay Surf Club building. This funding was agreed for 2013/14 in the 2012–22 Long-term Plan however it has been deferred till 2014/15 due to project delays.

Funding Impact Statement
​​— urban planning, heritage and public spaces developmentTop


  AP
​2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
Sources of operating funding          
General rates, uniform annual general charges, rates penalties 7,254 6,927 7,098 171  
Targeted rates (other than a targeted rate for water supply) - - - -  
Subsidies and grants for operating purposes - - - -  
Fees, charges, and targeted rates for water supply* 20 21 3,922 3,901  
Interest and dividends from investments - - 310 310  
Local authorities fuel tax, fines, infringement fees, and other receipts - - - -  
Total operating funding (A) 7,274 6,948 11,330 4,382  
           
Applications of operating funding          
Payments to staff and suppliers 2,029 2,005 7,775 5,770 1
Finance costs 1,370 744 573 (171)  
Internal charges and overheads applied 2,337 2,743 3,040 297  
Other operating funding applications 1,526 1,455 490 (965) 1
Total applications of operating funding (B) 7,262 6,947 11,878 4,931  
           
Surplus (deficit) of operating funding (A - B) 12 1 (548) (549)  
           
Sources of capital funding          
Subsidies and grants for capital expenditure - - - -  
Development and financial contributions - - - -  
Increase (decrease) in debt 3,739 638 1,429 791  
Gross proceeds from sales of assets 15,075 15,075 2,050 (13,025)  
Lump sum contributions - - - -  
Total sources of capital funding (C) 18,814 15,713 3,479 (12,234)  
           
Applications of capital funding          
Capital expenditure          
- to meet additional demand - - - -  
- to improve the level of service 3,739 638 1,429 791 2
- to replace existing assets 9,114 10,936 3,267 (7,669) 3
Increase (decrease) in reserves 5,973 4,140 (1,765) (5,905)  
Increase (decrease) in investments - - - -  
Total applications of capital funding (D) 18,826 15,714 2,931 (12,783)  
           
Surplus (deficit) of capital funding (C - D) (12) (1) 548 549  
           
Funding balance ((A - B) + (C - D)) - - - -  
           
Expenses for this activity grouping include the following depreciation/amortisation charge 12 1 4,305 4,304  
*Only the Water activity includes metered water rates
Notes:
1. Wellington Waterfront Operations are no longer funded through a grant. The operating costs are now shown as payments to staff and suppliers.
2. Lombard Lane funding included in the 2014/15 Annual Plan, subject to associated private development taking place. ​
​3. Wellington Waterfront Limited capital programme rescheduling as part of the 2013/14 Annual Plan moved capital expenditure from 2014/15 into 2013/14.

Funding Impact Statement ​
​— building and development controlTop


  AP
​2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
Sources of operating funding          
General rates, uniform annual general charges, rates penalties 8,857 8,329 7,319 (1,010)  
Targeted rates (other than a targeted rate for water supply) - - - -  
Subsidies and grants for operating purposes - - - -  
Fees, charges, and targeted rates for water supply* 11,425 11,258 12,655 1,397 1
Interest and dividends from investments 423 94 224 130  
Local authorities fuel tax, fines, infringement fees, and other receipts 29 58 24 (34)  
Total operating funding (A) 20,734 19,739 20,222 483  
           
Applications of operating funding          
Payments to staff and suppliers 12,135 11,062 12,991 1,929 2
Finance costs - - - -  
Internal charges and overheads applied 8,407 8,616 6,971 (1,645)  
Other operating funding applications 35 37 135 98  
Total applications of operating funding (B) 20,577 19,715 20,097 382  
           
Surplus (deficit) of operating funding (A - B) 157 24 125 101  
           
Sources of capital funding          
Subsidies and grants for capital expenditure - - - -  
Development and financial contributions - - - -  
Increase (decrease) in debt 13,234 14,454 17,651 3,197  
Gross proceeds from sales of assets - - - -  
Lump sum contributions - - - -  
Total sources of capital funding (C) 13,234 14,454 17,651 3,197  
           
Applications of capital funding          
Capital expenditure          
- to meet additional demand - - - -  
- to improve the level of service 13,234 14,454 17,651 3,197 3
- to replace existing assets - - - -  
Increase (decrease) in reserves 157 24 125 101  
Increase (decrease) in investments - - - -  
Total applications of capital funding (D) 13,391 14,478 17,776 3,298  
           
Surplus (deficit) of capital funding (C - D) (157) (24) (125) (101)  
           
Funding balance ((A - B) + (C - D)) - - - -  
           
Expenses for this activity grouping include the following depreciation/amortisation charge 157 24 125 101  
*Only the Water activity includes metered water rates
Notes:
1. Includes additional revenue associated with the signing of a contract to provide building consenting services to the Christchurch City Council that was not in place at the time of the 2012–22 Long-term Plan.
2. There are increased building compliance and consent costs associated with the Christchurch City Council contract and increased earthquake strengthening costs in this activity. Some of these costs were previously classified as corporate costs as part of the 2012-22 Long-term Plan. ​
​3. The programme to strengthen the Council's earthquake-prone buildings has changed since the setting of the 2012–22 Long-term Plan. The programme includes the large project to strengthen the Town Hall.

Funding Impact Statement ​
​— transportTop


  AP
​2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
Sources of operating funding          
General rates, uniform annual general charges, rates penalties 27,924 32,565 29,503 (3,062)  
Targeted rates (other than a targeted rate for water supply) 33 33 33 -  
Subsidies and grants for operating purposes 4,667 4,465 4,774 309  
Fees, charges, and targeted rates for water supply* 2,100 2,246 2,100 (146)  
Interest and dividends from investments - - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts - - - -  
Total operating funding (A) 34,724 39,309 36,410 (2,899)  
           
Applications of operating funding          
Payments to staff and suppliers 11,852 13,165 12,530 (635) 1
Finance costs 4,303 5,481 4,774 (707)  
Internal charges and overheads applied 6,696 6,122 5,785 (337)  
Other operating funding applications 10 - 10 10  
Total applications of operating funding (B) 22,861 24,768 23,099 (1,669)  
           
Surplus (deficit) of operating funding (A - B) 11,863 14,541 13,311 (1,230)  
           
Sources of capital funding          
Subsidies and grants for capital expenditure 10,264 10,884 10,590 (294)  
Development and financial contributions 987 987 539 (448)  
Increase (decrease) in debt 3,000 6,589 9,418 2,829  
Gross proceeds from sales of assets - - - -  
Lump sum contributions - - - -  
Total sources of capital funding (C) 14,251 18,460 20,547 2,087  
           
Applications of capital funding          
Capital expenditure          
- to meet additional demand 127 2,247 1,765 (482) 2
- to improve the level of service 6,406 8,531 10,968 2,437 2
- to replace existing assets 24,786 26,224 24,979 (1,245) 3
Increase (decrease) in reserves (5,205) (4,001) (3,854) 147  
Increase (decrease) in investments - - - -  
Total applications of capital funding (D) 26,114 33,001 33,858 857  
           
Surplus (deficit) of capital funding (C - D) (11,863) (14,541) (13,311) 1,230  
           
Funding balance ((A - B) + (C - D)) - - - -  
           
Expenses for this activity grouping include the following depreciation/amortisation charge 20,461 22,939 22,285 (654)  
*Only the Water activity includes metered water rates
Notes:
1. A roading corridor contract signed as part of the 2013/14 Annual Plan delivered savings for existing service levels, this has resulted in lower costs in the 2014/15 Annual Plan.
2. Increased capital funding for cycleways has been included in the 2014/15 Annual Plan, along with increased funding for rural roading improvements and a reduction in the funding required to complete the Johnsoville roading upgrade. ​
​3. A roading corridor contract signed as part of the 2013/14 Annual Plan delivered savings for existing service levels, and has resulted in lower asset renewal costs in the 2014/15 Annual Plan. Part of the variance is due to the enhancement of asset management planning systems and improved asset information.

Funding Impact Statement
​​— parkingTop


  AP
2013/14
$000
per LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
Sources of operating funding          
General rates, uniform annual general charges, rates penalties (15,638) (16,842) (14,086) 2,756  
Targeted rates (other than a targeted rate for water supply) - - - -  
Subsidies and grants for operating purposes - - - -  
Fees, charges, and targeted rates for water supply* 17,992 19,044 18,316 (728) 1
Interest and dividends from investments - - - -  
Local authorities fuel tax, fines, infringement fees, and other receipts 8,800 10,451 7,706 (2,745) 2
Total operating funding (A) 11,154 12,653 11,936 (717)  
           
Applications of operating funding          
Payments to staff and suppliers 10,071 12,048 9,850 (2,198) 3
Finance costs 17 13 17 4  
Internal charges and overheads applied 549 613 1,593 980  
Other operating funding applications - - 1 1  
Total applications of operating funding (B) 10,637 12,674 11,461 (1,213)  
           
Surplus (deficit) of operating funding (A - B) 517 (21) 475 496  
           
Sources of capital funding          
Subsidies and grants for capital expenditure - - - -  
Development and financial contributions - - - -  
Increase (decrease) in debt 1 - 30 30  
Gross proceeds from sales of assets - - - -  
Lump sum contributions - - - -  
Total sources of capital funding (C) 1 - 30 30  
           
Applications of capital funding          
Capital expenditure          
- to meet additional demand - - - -  
- to improve the level of service 1 - 30 30  
- to replace existing assets - - 150 150  
Increase (decrease) in reserves 517 (21) 325 346  
Increase (decrease) in investments - - - -  
Total applications of capital funding (D) 518 (21) 505 526  
           
Surplus (deficit) of capital funding (C - D) (517) 21 (475) (496)  
           
Funding balance ((A - B) + (C - D)) - - - -  
           
Expenses for this activity grouping include the following depreciation/amortisation charge 517 435 475 40  
*Only the Water activity includes metered water rates
Notes:
1. Reduced revenue forecast from parking fees.
2. Reduced revenue forecast from parking enforcement. ​
​3. Reduction in transaction based parking costs as a result of lower revenue forecast and savings in parking enforcement costs.

Funding Impact Statement (Excluding GST) ​Top


Rate Category Factor Differential Charge Type Total Value of Factor* Rate/charge Rates yield GST Exclusive
$000
General rate Base (Residential) Capital Value Base differential use $36,387,854,000 ¢0.200769 $73,056
Commercial, Industrial & Business Capital Value Commercial, industrial & business use $10,864,820,000 ¢0.560350 $60,881
TOTAL           $133,937
Sewerage targeted rate Base (Residential) Fixed amount / rating unit Base differential use per connection status 66583 properties $106.60 $7,097
Capital Value Base differential use per connection status $38,604,670,000 ¢0.038853 $14,999
Commercial, Industrial & Business Capital Value Commercial, industrial and business use per connection status $9,241,123,000 ¢0.153228 $14,160
TOTAL           $36,257
Water targeted rate Base (Residential)
(without water meter)
Fixed amount / rating unit Base differential use per connection status without a water meter 59058 properties $137.70 $8,132
Capital Value Base differential use per connection status without a water meter $31,467,251,000 ¢0.047383 $14,910
Base (Residential)
(with water meter)
Consumption unit charge Base differential use per connection status with a water meter n/a $1.870/m3 $452
Fixed amount / rating unit Base differential use per connection status with a water meter n/a $111.90 $78
Commercial, Industrial & Business
(without water meter)
Capital Value Commercial, industrial and business use per connection status without a water meter $610,676,000 ¢0.387439 $2,366
Commercial, Industrial & Business
(with water meter)
Consumption unit charge Commercial, industrial and business use per connection status with a water meter n/a $1.870/m3 $13,000
Fixed amount / rating unit Commercial, industrial and business use per connection status with a water meter n/a $111.90 $348
TOTAL           $39,288
Stormwater targeted rate Base (Residential excluding rural) Capital Value Base differental use (excluding rural) $35,903,385,000 ¢0.040252 $14,452
Commercial, Industrial & Business (excluding rural) Capital Value Commercial, industrial and business use (excluding rural) $9,621,552,000 ¢0.043610 $4,196
TOTAL           $18,648
Base sector targeted rate Base (Residential) Capital Value Residential use $36,336,101,000 ¢0.018998 $6,902
Commercial sector targeted rate Commercial, Industrial & Business Capital Value Commercial, industrial & business use $10,834,820,000 ¢0.046406 $5,028
Downtown targeted rate Commercial, Industrial & Business Capital Value Commercial, industrial & business use located in the downtown area $7,341,671,000 ¢0.0191768 $14,079
Tawa driveways targeted rate Base (Residential) Fixed amount / rating unit Shared residential access driveways in maintained by Council in the suburb of Tawa (extent of provision of service) 251 properties $133.33 $33
Marsden Village targeted rate Commercial, Industrial & Business Capital Value Commercial, industrial & business use located in Marsden shopping village area $11,905,000 ¢0.121538 $14
Mirarmar Business Improvement District targeted rate Commercial, Industrial & Business Fixed amount / rating unit Commercial, industrial & business use located in the Mirarmar Business Improvement District area 130 properties $365.00 $47
Capital Value over $1,000,000 per rating unit Commercial, industrial & business use located in the Mirarmar Business Improvement District area for all capital value over $1,000,000 CV per rating unit $90,990,000 ¢0.036174 $33
TOTAL           $80
TOTAL RATES REQUIREMENT (excluding GST)   $254,266

Note: When rates for 2014/15 are assessed, GST will be applied to the final rates. The total rates requirement includes rates remissions, but excludes rates penalties which are budgeted separately.

Funding Impact Statement
​— rating mechanismsTop


RatesTop

Rates are assessed under the Local Government (Rating) Act 2002 (the Act) on all rateable rating units in the Rating Information Database. Where rates are based on value, the capital value of the property as assessed by Quotable Value New Zealand Limited will apply. The latest city-wide revaluation was carried out as at 1 September 2012. This revaluation remains effective for the 2014/15 rating year, except where subsequent maintenance valuations have been required under valuation rules or the Council’s rating policies.

Policy objective:

General RatesTop

General rates are set under section 13 of the Act on all rateable rating units in the City of Wellington.

The Council proposes to set a general rate based on the capital value of each rating unit within the city.

The general rate will be set on a differential basis, based on land use. All rating units (or part thereof) will be classified for the purposes of general rates within one of the following rating differentials.

Differential Rating CategoriesTop

Base Differential

This includes:

a. Separately rateable land used solely for one or more household units; excluding those properties that provide short stay (28 days or less) commercial accommodation for which a tariff is charged
b. Vacant land zoned residential
c. Rural land (including farmland and lifestyle blocks) under the District Plan that is administered by the Council, but excluding any rating unit that is used for rural industrial purposes
d. ​Separately-rateable land occupied by a charitable organisation which is deemed by the Council to be used exclusively or principally for sporting, recreation or community purposes and that does not generate any private pecuniary profit.

This category has a general rate differential rating factor of 1.0.

Commercial, Industrial and Business Differential

This includes:

a. Separately-rateable land used for a commercial or industrial purpose
b. Vacant land zoned commercial, industrial or rural industrial under the District Plan administered by the Council
c. Land used for offices, administrative and/or associated functions
d. Land used for commercial accommodation for which a tariff is charged and where the principal purpose is the provision of short stay (28 days or less) accommodation
e. Business-related premises used principally for private pecuniary benefit
f. Utility networks
​g. Any property not otherwise categorised within the Base Differential.

This category has a general rate differential rating factor of 2.8.

Differential Rating Category Conditions

Differential rating 2.8:1 Commercial:Base

a) The total capital value of the rating unit is above $800,000 or
​b) Minority use(s) account for more than 30 percent of the total capital value of the rating unit.

In any other case, the General rate differential is determined by principal use.

a) The time at which the Council gives final approval of the completed works, or
​b) The property is deemed (by the Council) to be available for its intended use.

In situations where the change in land use does not require a Council consent, but warrants a change in differential rating category, the onus is on the ratepayer to inform the Council prior to the property being utilised under the new use.

Uniform Annual General Charge

The Council does not assess a uniform annual general charge.

Non-Rateable LandTop

Non-Rateable

Includes any land referred to in Part 1, Schedule 1 of the Act. This land is non-rateable with the exception of targeted rates for sewerage and water where rates are applicable.

50 Percent Non-Rateable

Includes all land referred to in Part 2, Schedule 1 of the Act. This land is 50 percent non-rateable in respect of the rates that would have applied had the property not been classified as non-rateable, with the exception of targeted rates for sewerage and water for which the land is fully rateable.

Targeted RatesTop

Targeted rates are set under section 16 of the Act.

The Council has not adopted any lump sum contribution schemes under part 4A of the Act in respect of its targeted rates, and will not accept lump sum contributions in respect of any targeted rate.

Sewerage Rate

Targeted sewerage rates are to be apportioned 60 percent:40 percent of rates between properties incorporated under the Base differential and the Commercial, Industrial and Business differential in accordance with the Revenue and Financing Policy. This rate pays for the cost of the provision of the sewerage treatment facilities for the city.

For the purposes of these rates the sewerage collection and disposal service is treated as being provided if the rating unit is connected to a public sewerage drain (either directly or indirectly), irrespective of whether the property is considered fully rateable or is mandatory non-rateable or 50 percent non-rateable under Schedule 1 of the Act.

The targeted sewerage rate is calculated as follows:

For rating units incorporated in the Commercial, Industrial and Business differential:

A rate per dollar of capital value on all rating units connected to a public sewerage drain, to collect 40 percent of the required rates funding, after having deducted the total dollar amount budgeted to be collected through trade waste charges (excluding consent fees).

For rating units incorporated in the Base differential:

A fixed amount per annum per rating unit for administration, plus a rate per dollar of capital value on all rating units connected to a public sewerage drain, to collect 60 percent of the required rate funding.

Water Rate

A targeted rate for water is to be apportioned with the aim of achieving a 60 percent:40 percent split between properties incorporated under the Base differential and the Commercial, Industrial and Business differential in accordance with the Revenue and Financing Policy.

This rate pays for water collection and treatment facilities, the water distribution network and water conservation for the city.

This rate is set on all rating units serviced by a water connection.

For the purposes of these rates, the water service is treated as being provided if the rating unit is connected to the public water supply (either directly or indirectly), irrespective of whether the property is considered fully rateable or is mandatorily non-rateable or 50 percent non-rateable under Schedule 1 or 2 of the Act.

The targeted Water rate is calculated as follows:

For rating units incorporated in the Commercial, Industrial and Business differential, either:

a) A consumption unit rate per cubic metre of water used for all rating units connected to the public water supply with a water meter installed, plus a fixed amount per annum per rating unit for administration.
Or
b) A rate per dollar of capital value on all rating units connected to the public water supply, without a water meter installed.

For rating units rated incorporated in the Base differential, either:

a) A consumption unit rate per cubic metre of water used for all rating units connected to the public water supply with a water meter installed, plus a fixed amount per annum per rating unit for administration.
Or
b) A fixed amount per annum per rating unit for administration plus a rate per dollar of capital value on all rating units connected to the public water supply without a water meter installed, to collect the required Base differential contribution.

Stormwater Network Rate

A targeted stormwater rate is to be apportioned 77.5 percent to the non-rural rating units incorporated under the Base differential and 22.5 percent to the non-rural rating units incorporated under the Commercial, Industrial and Business differential in accordance with the Revenue and Financing Policy. This rate pays for the cost of the provision of the stormwater collection/disposal network for the city.

Properties classified as rural under the Council’s District Plan are excluded from the liability of this rate.

The targeted Stormwater network rate is calculated as follows:

For non-rural rating units incorporated in the Commercial, Industrial and Business differential:

A rate per dollar of capital value to collect 22.5 percent of the required rates funding.

For non-rural rating units incorporated in the Base differential:

A rate per dollar of capital value to collect 77.5 percent of the required rates funding.

Commercial, Industrial and Business Sector Targeted Rate

This rate pays for activities where the Council’s Revenue and Financing Policy identifies that the benefit can be attributed to the commercial, industrial and business sector and where the activity is not incorporated in other service related targeted rates. This incorporates the following:

This rate is assessed on all properties incorporated in the commercial, industrial and business sector and is calculated on a rate per dollar of rateable capital value.

Base Sector Targeted Rate

This rate pays for activities where the Council’s Revenue and Financing Policy identifies that the benefit can be attributed to properties incorporated under the Base differential rating category (incorporating residential ratepayers). This incorporates the following activities:

This rate is assessed on all properties incorporated under the Base differential rating category and is calculated on a rate per dollar of rateable capital value.

Downtown Targeted Rate

This rate pays for tourism promotion and retail support (free weekend parking). It also pays for 70 percent of the visitor attractions activity and 25 percent of galleries and museums activity.

This rate is assessed on all commercial, industrial and business properties in the downtown area and is calculated on a rate per dollar of rateable capital value. For the purpose of this rate, the downtown area refers to the area as described by the Downtown Area map as follows:

Downtown Levy Area map.

Tawa Driveways Targeted Rate

This rate pays for the maintenance of a specified group of residential access driveways in the suburb of Tawa, overseen by the Council. This rate is assessed on a specific group of rating units that have shared access driveway that are maintained by Council in the former Tawa Borough at a fixed amount per annum per rating unit.

Marsden Village Targeted Rate

This rate is collected by the Council on behalf of the Marsden Village Association on all commercial, industrial and business properties in the Marsden shopping village (see map) and is calculated on a rate per dollar of capital value to fund the maintenance of the area.

Karori map.

Miramar Business Improvement District Targeted Rate

This rate is set by Council to fund the Business Improvement District activities of Enterprise Miramar Peninsula Incorporated.

Miramar map.

The category of land for which this rate is set is on all rating units within the Miramar Business Improvement District (see map) which are subject to the “commercial, industrial and business” differential, but excluding any rating unit that is a substation or used by local or central government for a non-business purpose.

Liability for this rate is calculated as a fixed amount per rating unit, plus a rate per dollar of capital value for any capital value over $1 million per rating unit.

Indicative Rates*Top

The following table shows the indicative residential property rates inclusive of GST for properties without a water meter for 2014/15:

Capital Values
$
2014/15 Rates
$
Increase over 2013/14
​%
200,000 1,077 2.53%
300,000 1,476 2.44%
400,000 1,874 2.40%
500,000 2,272 2.37%
600,000 2,670 2.34%
700,000 3,068 2.33%
800,000 3,466 2.32%
900,000 3,865 2.31%

The following table shows the indicative downtown commercial property rates inclusive of GST (for properties with a water meter) for 2014/15. This excludes water by consumption which is charged based on actual usage:

Capital Values
$
2014/15 Rates
$
Increase over 2013/14
​%
3,250,000 37,483 2.33%
3,500,000 40,344 2.30%
3,750,000 43,206 2.27%
4,000,000 46,068 2.25%
4,250,000 48,929 2.23%
4,500,000 51,791 2.21%
4,750,000 54,653 2.20%
5,000,000 57,514 2.18%

Rates Remission and Postponement PoliciesTop

Refer to the Council Rates Remission and Postponement Policies. Changes to the rates remission policy are described on page 107.

Prospective Statement of Comprehensive Financial PerformanceTop


  AP
​2013/14
$000
LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
REVENUE          
Revenue from rates (excluding metered water) 233,561 244,025 241,387 (2,638) 1
Revenue from water by meter 13,333 12,822 13,879 1,057 2
Revenue from development contributions 5,000 5,000 2,000 (3,000) 3
Revenue from grants, subsidies and reimbursements 49,746 46,618 51,090 4,472 4
Revenue from operating activities 101,926 103,031 119,913 16,882  
Investments 19,118 18,455 20,215 1,760 5
Finance revenue 560 562 603 41  
Other revenue 1,120 1,164 1,100 (64)  
TOTAL REVENUE 424,364 431,677 450,187 18,510  
EXPENSE          
Finance expense 21,965 25,096 23,041 (2,055) 6
Expenditure on operating activities 274,623 271,688 298,596 26,908 7
Depreciation and amortisation 92,109 101,138 102,165 1,027  
TOTAL EXPENSE 388,697 397,922 423,802 25,880  
NET SURPLUS FOR THE YEAR 35,667 33,755 26,385 (7,370) 8
OTHER COMPREHENSIVE REVENUE AND EXPENSE          
Items that will not be classified to surplus/deficit          
Revaluations - fair value movement on property, plant and equipment - net 176,121 76,419 57,073 (19,346)  
TOTAL OTHER COMPREHENSIVE REVENUE AND EXPENSE 176,121 76,419 57,073 (19,346)  
TOTAL COMPREHENSIVE REVENUE AND EXPENSE FOR THE YEAR 211,788 110,174 83,458 (26,716)  
           
Notes:
1. Lower levels of inflation compared to the assumptions used in the 2012–22 Long-term Plan, which has changed the rates increase target and limit
2. Reclassification of rates between general rates and water rates
3. The expected development contributions income in 2014/15 has been reduced to reflect actual current income and changes to the Development Contributions Policy.
4. Changes in the timings for the Crown funding for the housing upgrade programme results in higher 2014/15 revenue.
5. Airport dividend forecast at 2012/13 levels, this is higher than the assumption used in the 2012–22 Long-term Plan.
6. Forecast interest rates are lower than was forecast in the 2012–22 Long-term Plan for the same period, along with lower than expected debt levels.
​7. Details of specific changes to operational costs can be found in the Funding Impact Statements. This will outline at an activity level the key changes.
8. Explanation of Net Operating Surplus:
EXPENDITURE NOT FUNDED UNDER SECTION 100 OF LGA AP
2014/15
$000
NZTA Transport funded projects (7,860)
General (4,000)
Moa Point sewerage treatment plant (3,226)
Decomissioned Living Earth joint venture plant (235)
Wellington Waterfront Limited depreciation (4,294)
TOTAL EXPENDITURE NOT FUNDED UNDER SECTION 100 OF LGA (19,615)
REVENUE RECEIVED FOR CAPITAL PURPOSES  
NZTA capital funding 11,194
Housing ring-fenced surplus (3,378)
Housing grant 32,036
Development contributions 2,000
Bequests, trust and other external funding 749
TOTAL REVENUE RECEIVED FOR CAPITAL PURPOSES 42,601
ITEMS FUNDED FROM PRIOR YEAR SURPLUSES  
Wellington Waterfront Limited interest (559)
Economic Development Fund (3,554)
TOTAL ITEMS FUNDED FROM PRIOR YEAR SURPLUS (4,113)
ADDITIONAL ITEMS  
Self-insurance 750
Weathertight Homes funding 6,662
Waste minimisation activity 124
Reserves purchases and development fund (24)
TOTAL ADDITIONAL ITEMS 7,512
TOTAL SURPLUS 26,385

Prospective Statement of Financial PositionTop


  AP
​2013/14
$000
LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
ASSETS          
Current assets          
Cash and cash equivalents 2,622 19,641 2,389 (17,252) 1
Derivative financial assets 108 - 409 409  
Trade and other receivables 41,658 38,090 39,556 1,466  
Prepayments 14,211 5,869 15,048 9,179 2
Inventories 866 1,134 875 (259)  
Total current assets 59,465 64,734 58,277 (6,457)  
Non-current assets          
Derivative financial assets 949 1,275 3,280 2,005  
Trade and other receivables 12,675 - - -  
Other financial assets 8,392 7,918 8,928 1,010  
Intangibles 13,900 13,036 16,743 3,707  
Investment properties 200,474 203,742 205,951 2,209  
Property, plant & equipment 6,768,587 6,985,012 6,974,749 (10,263)  
Investment in controlled entities 3,809 3,809 3,809 -  
Investment in associates 19,519 19,519 19,519 -  
Total non-current assets 7,028,305 7,234,311 7,232,979 (1,332)  
TOTAL ASSETS 7,087,770 7,299,045 7,291,256 (7,789)  
LIABILITIES          
Current liabilities          
Derivative financial liabilities 469 26 404 378  
Trade and other payables 53,217 60,435 57,945 (2,490)  
Revenue in advance 11,889 10,320 11,405 1,085  
Borrowings 129,572 92,067 155,562 63,495 3
Employee benefit liabilities and provisions 6,638 5,694 5,698 4  
Provision for other liabilities 16,797 11,708 17,466 5,758  
Total current liabilities 218,582 180,250 248,480 68,230  
Non-current liabilities          
Derivative financial liabilities 23,812 10,062 12,831 2,769  
Employee benefit liabilities 1,649 - 1,474 1,474  
Borrowings 246,063 336,864 248,601 (88,262) 3
Provisions for other liabilities 27,288 22,196 43,687 21,491  
Total non-current liabilities 298,812 369,122 306,594 (62,528)  
TOTAL LIABILITIES 517,394 549,372 555,073 5,701  
EQUITY          
Accumulated funds and retained earnings 4,985,988 4,974,489 4,992,265 17,776  
Revaluation reserves 1,593,814 1,768,045 1,743,064 (24,981) 4
Hedging reserve (23,896) (9,173) (9,955) (782)  
Fair value through other comprehensive revenue and expense reserve 586 316 93 (223)  
Restricted funds 13,884 15,996 10,716 (5,280)  
TOTAL EQUITY 6,570,376 6,749,673 6,736,183 (13,490)  
TOTAL EQUITY AND LIABILITIES 7,087,770 7,299,045 7,291,256 (7,789)  
           
Notes:
1. Assumptions on the funds held on deposit changed between the 2012–22 Long-term Plan and the 2014/15 Annual Plan.
2. Higher level of prepayments in the 2014/15 Annual Plan compared to the same period in the 2012–22 Long-term Plan. Key driver is increased insurance prepayment, due to higher premiums and a different payment period.
3. Inclusion of capital expenditure carry forward assumption in the 2014/15 Annual Plan not included in the 2012–22 Long-term Plan for the same period. The Council is committed to reducing the amount of capital expenditure that is not completed in the year it is planned. ​
​4. Reduction due to changes in assumptions used for asset revaluations and reductions in the capital expenditure programme in 2013/14 and 2014/15.

Prospective Statement of Changes in net assets/EquityTop


  AP
​2013/14
$000
LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
NET ASSETS/EQUITY - OPENING BALANCES          
Accumulated funds and retained earnings 4,950,327 4,940,735 4,965,881 25,146 1
Revaluation reserves 1,417,693 1,691,626 1,685,991 (5,635)  
Hedging reserve (23,896) (9,173) (9,955) (782)  
Fair value through other comprehensive revenue and expense reserve 586 316 93 (223)  
Restricted funds 13,878 15,994 10,715 (5,279)  
TOTAL EQUITY - Opening balance 6,358,588 6,639,498 6,652,725 13,227  
CHANGES IN EQUITY          
Retained earnings          
Net surplus for the year 35,667 33,756 26,385 (7,371)  
Transfer to restricted funds (32) (767) (3,766) (2,999)  
Transfer from restricted funds 26 765 3,765 3,000  
Revaluation reserves          
Fair value movement - property plant and equipment - net 176,121 76,419 57,073 (19,346)  
Restricted Funds          
Transfer to retained earnings (26) (765) (3,765) (3,000)  
Transfer from retained earnings 32 767 3,766 2,999  
TOTAL COMPREHENSIVE REVENUE AND EXPENSE 211,788 110,175 83,458 (26,717)  
NET ASSETS/EQUITY - CLOSING BALANCES          
Accumulated funds and retained earnings 4,985,988 4,974,489 4,992,265 17,776  
Revaluation reserves 1,593,814 1,768,045 1,743,064 (24,981)  
Hedging reserve (23,896) (9,173) (9,955) (782)  
Fair value through other comprehensive revenue and expense reserve 586 316 93 (223)  
Restricted funds 13,884 15,996 10,716 (5,280)  
TOTAL EQUITY - Closing balance 6,570,376 6,749,673 6,736,183 (13,490)  
           
Notes:
​1. Variations in actual opening balance between the 2012–22 Long-term Plan and the opening balance for the 2014/15 Annual Plan.

Prospective Statement of Cash FlowsTop


  AP
​2013/14
$000
LTP
2014/15
$000
AP
2014/15
$000
Variance
to LTP
​$000
Notes
CASH FLOWS FROM OPERATING ACTIVITIES          
Receipts from rates - Council (excluding metered water) 233,551 244,310 241,387 (2,923)  
Receipts from water rates by meter 13,333 12,822 13,879 1,057  
Receipts from rates - Greater Wellington Regional Council 50,341 - 50,341 50,341 1
Receipts from activities and other income 107,022 108,910 123,013 14,103  
Receipts from grants and subsidies - operating 7,251 6,871 7,715 844  
Receipts from grants and subsidies - capital 42,495 39,747 43,375 3,628  
Receipts from investment property lease rentals 9,220 9,157 9,215 58  
Cash paid to suppliers and employees (260,882) (258,451) (286,780) (28,329)  
Rates paid to Greater Wellington Regional Council (50,341) - (50,341) (50,341) 1
Grants paid (29,389) (30,232) (28,719) 1,513  
NET CASH FLOWS FROM OPERATING ACTIVITIES 122,601 133,134 123,085 (10,049)  
CASH FLOWS FROM INVESTING ACTIVITIES          
Dividends received 9,898 9,298 11,000 1,702  
Interest received 10 10 44 34  
Proceeds from sale of property, plant and equipment 15,075 - 4,050 4,050 2
Purchase of intangibles (3,305) (7,276) (8,777) (1,501)  
Purchase of property, plant and equipment (154,414) (137,992) (155,724) (17,732) 3
NET CASH FLOWS FROM INVESTING ACTIVITIES (132,736) (135,960) (149,407) (13,447)  
CASH FLOWS FROM FINANCING ACTIVITIES          
New borrowings 29,967 26,934 203,964 177,030 4
Repayment of borrowings - - (155,562) (155,562) 4
Interest paid on borrowings (20,866) (24,108) (22,080) 2,028  
NET CASH FLOWS FROM FINANCING ACTIVITIES 9,101 2,826 26,322 23,496  
Net increase/(decrease) in cash and cash equivalents - - - -  
Cash and cash equivalents at beginning of year 2,622 19,641 2,389 (17,252) 5
CASH AND CASH EQUIVALENTS AT END OF YEAR 2,622 19,641 2,389 (17,252)  
           
Notes:
1. Wellington City Council collects rates on behalf of GWRC. The 2012–22 Long-term Plan showed cash flows net of this transaction.
2. Timing changes in proceeds from Wellington Waterfront Limited and forecasting land sales expectations.
3. Changes in the timings of the capital expenditure programme.
4. Changes in reporting requirements. ​
​5. Variations in actual opening balance between the 2012–22 Long-term Plan and the opening balance for the 2014/15 Annual Plan.

Prospective Statement of Changes in Restricted FundsTop


  Opening balance
2014/15
$000
Deposits


$000
Expenditure


$000
Closing balance
2014/15
$000



Purpose
SPECIAL RESERVES AND FUNDS          
Reserve purchase and
development fund
285 - - 285 Used to purchase and develop reserve areas within the city.
Self insurance reserve 10,022 750 (750) 10,022 Allows the Council to meet the uninsured portion of insurance claims.
Economic Development Fund - 3,000 (3,000) - -
Total special reserves and funds 10,307 3,750 (3,750) 10,307  
TRUSTS AND BEQUESTS          
A Graham Trust 3 - - 3 For the upkeep of a specific area of Karori Cemetery
A W Newton Bequest 286 14 - 300 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 12 1 - 13 For the purchase of children's books
F L Irvine Smith Memorial 6 - - 6 For the purchase of books for the Khandallah Library
Greek NZ Memorial Association 5 - - 5 For the maintenance and upgrade of the memorial
Kidsarus 2 Donation 3 - - 3 For the purchase of children's books
Kirkaldie and Stains Donation 17 - - 17 For the beautification of the BNZ site
QEII Memorial Book Fund 21 1 - 22 For the purchase of books on the Commonwealth
Schola Cantorum Trust 6 - - 6 For the purchase of musical scores
Stanley Banks Trust 19 - (15) 4 To be available for bursaries for children of World War II servicemen
Terawhiti Grant 10 - - 10 To be used on library book purchases
Wellington Beautifying Society Bequest 14 - - 14 Used towards "the Greening of Taranaki Street" project
Total trusts and bequests 408 16 (15) 409  
Total restricted funds 10,715 3,766 (3,765) 10,716  

In addition to the above, the Council is proposing to establish a Forest Carbon Reserve Fund on the basis that it will reinvest a share of revenue from the sale of forestry emission units under the New Zealand Emissions Trading Scheme or Permanent Forest Sink Initiative to protect or enhance the Council’s forest carbon stocks. Other revenues generated from the sale of emission units or from costs recovered by way of fees and charges in regard to the New Zealand Emissions Trading Scheme will be treated as other revenues received by the Council. We are not anticipating any revenue for this fund in the 2014/15 year.