Cromwell Community Board 5 February Report for Decision

Transcription

1 Cromwell Community Board 5 February 2019 Report for Decision Draft Annual Plan 2019/20 (GAD ) Purpose of Report For the Cromwell Community Board to approve the draft budgets for inclusion in Council s Annual Plan 2019/20 process. The documentation will provide supporting information to the Consultation Document, if required Recommendations A. Recommended that the report be received and the level of significance accepted. B. Recommended that Cromwell draft budgets be accepted by the Cromwell Community Board Background The 2019/20 Draft Budgets have been prepared on the assumption that there is no inflationary increase on the current budgets These draft figures result in a rate increase for the community board rates of $310k (12.2%). The main reason for the increase is due to increased depreciation from the Cromwell Fruit project. The increase in other costs reflect new budget lines in contracting in relation to the Cromwell Masterplan. This cost of $3.5 million will see the start of the project. This cost will be funded from reserves. A CAPEX cost of $4.9 million has been included in the CAPEX program for property. This expenditure will be subject to a separate consultation process in April/May. These amounts will not be included in the final budget if the decisions based on the consultation change the Community Boards and/or Councils view on the matter. Report Author: Executive Manager Corporate Services

2 ANNUAL LTP ANNUAL ANNUAL Plan Year 2 Plan Plan 2019/ /20 Variance 2019/ /19 Variance $'000 $'000 $'000 $'000 $'000 $'000 Income: Rates 2,533 2, ,533 2, User fees & Other External Interest & Dividends Internal Interest Revenue 751 1,155 (404) Reserves Contributions Development Contributions Other Capital Contributions Profit on Sale of Assets 4,015 7,489 (3,473) 4,015 11,051 (7,036) Total Income 8,493 12,217 (3,724) 8,493 15,182 (6,690) Expenditure Building Repairs and Mtce Fuel & Energy (6) (6) Grants (5) (5) Internal Interest Expense (22) (58) Members Remuneration (7) (7) Contracts (34) (52) Other Costs 3, (3,511) 3, (3,008) Rates expense Staff (11) (22) Cost Allocations (15) (22) Loss on Sale of Assets Depreciation (142) (205) Total Expenses 7,314 3,567 (3,747) 7,314 3,932 (3,382) Operating Surplus / (Deficit) 1,179 8,650 (7,471) 1,179 11,251 (10,071) Vested assets NET SURPLUS / (DEFICIT) 1,179 8,650 (7,471) 1,179 11,251 (10,071) Options Considered Option 1 Consider and amend, if required, the proposed budgets presented in this report for consultation as part of the Annual Plan 2019/20. Advantages: Allows for the budget to feed into Council s Annual Plan 2019/20 Meets statutory requirements Disadvantages: None Option 2 Decline the draft budgets. Advantages: Allows more time to review the proposed budget Report Author: Executive Manager Corporate Services

3 Disadvantages: Will affect the adoption process for the Annual Plan 2019/20 which has statutory time frames. Discussion The attached rates analysis shows the cost centres that are funded by Cromwell Community Board Rates and outlines the changes made. Cost centre managers have indicated that these changes are required. Risk Analysis If the final Annual Plan 2019/20 is not adopted by 30 June 2019 Council will lose its ability to set rates on 1 July Additionally, if the process is not fully compliant, Council may be exposed to legal challenges. Financial Implications The Annual Plan 2019/20 will be used as the basis for financial management for 2019/20. Local Government Act 2002 Purpose Provisions The proposed Annual Plan 2019/20 and associated consultation document will be produced in order to comply with the provisions of the Local Government Act Council Policies / Plans / Procedures The Annual Plan 2019/20 will form the basis for financial and non-financial management and performance measurement for 2019/20. Proposal It is recommended that the Community Board adopt Option 1 Implementation Plan The Annual Plan 2019/20 will be adopted and used for management funding and measurement for 2019/20. Consultation and Engagement These budgets are proposed to the Community Board. Once agreed, they will form part of the supporting documentation for the Annual Plan 2019/20. Items of significance in the Annual Plan will be included in the Consultation Document as part of the Consultative Process. Communication A communication plan will form part of the Consultative Process. Attachments 1. Cromwell Rates Comparison 2. Capital Expenditure 2019/20 Report Author: Executive Manager Corporate Services

4 Report Author: Bernard Murphy Executive Manager Corporate Services 31/01/2019 Report Author: Executive Manager Corporate Services

5 Cromwell Community Board Rates for Comparison to Annual Plan Sundry 2018/19 AP 2019/20 AP % Change $ Change 3033 Cromwell Promotions 106, , % Cromwell General Revenues (205,000) (160,975) -27.3% (44,025) 3211 Elected Members - Cromwell 108, , % (7,660) 3431 Cromwell Community Grants 49,025 53, % (4,700) 58, , % (56,385) Cromwell General Revenues Reduction in investment ineterest Property and Facilities 2018/19 AP 2019/20 AP 19/20 vs 18/19 % Change 19/20 vs 18/19 $ Change 3351 Property general Cromwell 154, , % 43, Endowment land Cromwell (50,061) (71,164) 29.7% 21, Medical centre Cromwell % (6) 3361 Industrial estate Cromwell (49,659) (81,661) 39.2% 32, Bannockburn Community Centre 0 11, % (11,754) 3414 Cromwell Memorial Hall 71,172 66, % 4, Cromwell sports pavillions 14,362 (16,536) 186.9% 30, Tarras Comunity Centre 9,697 17, % (7,616) 3418 Cromwell Museum 38,924 39, % (453) 3419 Cromwell Resource Centre Bldg. 20,119 21, % (1,390) 3757 Cromwell Town Centre 278, , % (143,578) 487, , % (33,005) Property General Cromwell Increase in staff costs. Endowment Land Cromwell No planned sale of land. Industrial Estate Cromwell Reduction in investment account interest, due to no land sales and higher engineering fees. Cromwell Sports Pavillions Increase in investment account interest. Tarras Community Centre Increase in contract work and higher planned repair & maintenance costs. Cromwell Resource Centre Building Higher planned maintenance costs, in line with LTP. Cromwell Town Centre Higher depreciation (Big Fruit reserve) and investment account interest.

6 Parks and Reserves 2018/19 AP 2019/20 AP 19/20 vs 18/19 % Change 19/20 vs 18/19 $ Change 3451 Bannockburn Recreation Reserve Comm 1,536 3, % (1,481) 3461 Anderson Park 181, , % (29,395) 3463 Cromwell Reserves 564, , % (101,775) 3491 Cromwell Pool 892, , % (66,860) 3831 Cromwell Cemetery 36,808 58, % (22,026) 3832 Nevis Cemetery 600 (150) 500.0% 750 1,677,29 0 1,898, % (220,787) Bannockburn Recreational Reserve Increase in investment account interest. Anderson Park Higher depreciation and increase in physical works contracts. Cromwell Reserves Higher depreciation, higher maintenance contract value and tree costs. Cromwell Swim Centre Higher depreciation, staff costs and maintenance costs. Cromwell Cemetery Higher contract works and parks ground maintenance costs. 2018/19 AP 2019/20 AP % Change $ Change Total Rates 2,222,758 2,532, % (310,176) 2018/19 LTP 2019/20 LTP % Change $ Change Planned LTP Rate Movement 2,222,758 2,380, % (157,415) Effect on the Rates for These draft figures result in a rate increase for the community board rates of $310k. The main increase is due to an increase in depreciation costs and professional fees. 2018/19 Annual Plan vs 2019/20 Annual Plan Movement in Surplus/Deficit (10,071) Rates Cost allocations Contracts Grants Profit on sale Development contributions User fees & other Operating Costs Depreciation (7,036) ,040 (12,000) (9,000) (6,000) (3,000) 0 3,000 $000s

7 This Graph shows the total rates increase in red and the major contributors to the reduction. Lines in Green have an effect of reducing the rates required while the blue lines will increase the rate requirement. Total Cromwell Rates Collected 2019/20 8.8% 91.2% District Community Board Cromwell Rates Collected 2019/20 This graph shows the makeup of rates collected in the Cromwell Ward in terms of the Community Board rates and Districtwide rates. The Community Board rates make up just under 9% of the rates collected in the area. The main driver of the rate movements comes from the Districtwide rates.

8 CAPITAL EXPENDITURE 2019/20: AP LTP 2019/ /20 Variance Council Property and Facilities Cromwell Town Centre Cromerll Master Plan 4,964, ,964,190 4,964, ,964,190 Tarras Community Centre Tarras Community Centre - Pinex Renewal 16, ,600 16, ,600 Parks and Recreation Anderson Park Sports field realignment - feasability study 5,000 5,000 0 Replace irrigation sprinklers 2,449 2,449 0 New Signs and Structures 1,500 1,500 0 Replace park benches at playground 6,000 6,000 0 Replace Softfall 3,500 3, ,449 18,449 0 Cromwell Pool Renovate hockey storage room 5,000 5,000 0 Washing machine Sand filter 90,000 90,000 0 Compressor heatpump 200, ,000-50,000 Recreation equipment 2,380 2, , ,989-50,000 Cromwell Reserves Installation of drinking fountain at Dustin Park Playground 5,000 5,000 0 Extend skate park an Big Fruit Reserve to cover half basketball court area 300, ,000 0 Installation of pop-up irrigation in reserve at McNulty Road/ Gair Ave intersetion (beside The Rise) 159, ,300 0 Irrigation sprinklers Cromwell Reserves 6,149 6,149 0 Fencing Contributions Cromwell Reserves 9,194 9,194 0 Replace solenoid irrigation valves. 20,000 20,000 0 Landscaping Upgrades in Parks Cromwell Reserves 13, ,000 Replacement of Controller Boxes and Controller 7,000 7,000 0 Replacement Signs and Structures 6,000 6,000 0 Playground softfall replacement 7,000 7, , ,643 13,000 Grand Total 865, ,081 4,943,790