PROSPECTIVE STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE OPERATING REVENUE Rates, Including Targeted Rates for Water Supply 137,774 143,267 150,032 153,926 Grants & Subsidies 5,022 5,319 5,303 5,058 Fees & Charges 40,188 39,054 35,209 46,433 Finance Revenue 2,990 1,834 2,012 2,297 Total Operating Revenue 185,974 189,474 192,556 207,714 ASSET DEVELOPMENT REVENUE & OTHER GAINS Development Contributions 27,141 20,460 19,361 24,334 Other Gains 16,544 1,016 1,875 605 Grants & Subsidies Capital Expenditure Contributions 5,560 9,683 6,183 13,879 Vested Assets to Tauranga City 24,008 34,431 37,733 37,929 Total Asset Development Revenue & Other Gains 73,253 65,590 65,152 76,747 TOTAL REVENUE 259,227 255,064 257,708 284,461 OPERATING EXPENDITURE Personnel Expense 43,050 46,799 43,363 52,328 Depreciation & Amortisation Expense 44,942 46,564 50,399 52,281 Finance Expenses 20,663 19,420 23,613 21,021 Other Finance Expenses 171 230 226 310 Other Operating Expenses 82,246 77,822 75,426 93,491 Total Operating Expenditure 191,072 190,835 193,027 219,431 PROSPECTIVE STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE (CONTINUED) OTHER EXPENSES Other Losses 6,264 0 0 0 Unrealised Loss on Interest Swaps 21,221 0 0 0 Provisions Expense 1,414 25 26 0 Total Other Expenses 28,899 25 26 0 TOTAL EXPENDITURE 219,971 190,860 193,053 219,431 SURPLUS/(DEFICIT) BEFORE TAXATION 39,256 64,204 64,655 65,030 Income Tax Expense/(Benefit) 0 0 0 0 Surplus from Continuing Operations 39,256 64,204 64,655 65,030 SURPLUS/(DEFICIT) AFTER TAXATION 39,256 64,204 64,655 65,030 OTHER COMPREHENSIVE REVENUE AND EXPENSE Asset Revaluation Reserve Gains/ 85,970 0 95,909 0 (Losses) Taxation on Other Comprehensive 0 0 0 0 Revenue Other Comprehensive Revenue and Expense for the year, net of tax 85,970 0 95,909 0 TOTAL COMPREHENSIVE REVENUE AND EXPENSE FOR THE YEAR 125,226 64,204 160,564 65,030 42 TAURANGA CITY COUNCIL ANNUAL PLAN
PROSPECTIVE STATEMENT OF FINANCIAL POSITION ASSETS ASSETS - CURRENT Cash and Cash Equivalents 18,570 0 15 71 Debtors & Other Receivables 17,310 15,330 17,914 17,310 Inventories 339 438 560 339 Derivative Financial Instruments 181 1,069 40 181 Non-Current Assets Held for Sale 8,858 4,356 4,818 13,104 Total Current Assets 45,258 21,193 23,347 31,005 ASSETS NON-CURRENT Derivative Financial Instruments 1,858 1,773 1,771 1,858 Other Financial Assets 6,080 6,969 9,366 6,685 Other Investments - CCO's 101,301 106,343 101,347 110,537 Other Investments - Other Entities 200 174 166 200 Investment Property 50,283 40,703 30,894 50,283 Intangible Assets 11,757 7,343 9,141 11,645 Forestry 9,236 10,160 6,542 9,236 Property, Plant & Equipment 3,335,394 3,346,889 3,628,767 3,522,331 Total Non-Current Assets 3,516,109 3,520,354 3,787,994 3,712,775 TOTAL ASSETS 3,561,367 3,541,547 3,811,341 3,743,780 LIABILITIES LIABILITIES - CURRENT Payables & Deferred Revenue 41,353 34,060 35,371 41,353 Provisions 6,173 83 503 80 Employee Entitlements 3,883 2,568 3,835 3,883 Deposits Held 5,041 4,526 4,406 5,041 Revenue in Advance 2,885 3,153 5,246 2,885 Derivative Financial Instruments 486 381 190 486 Borrowings 30,000 60,000 122,352 50,000 Total Current Liabilities 89,821 104,771 171,903 103,728 PROSPECTIVE STATEMENT OF FINANCIAL POSITION (CONTINUED) LIABILITIES NON-CURRENT LIABILITIES Provisions 34 78 144 58 Employee Entitlements 70 116 216 70 Derivative Financial Instruments 48,397 28,083 18,108 48,397 Borrowings 285,542 331,349 304,644 392,071 Total Non-Current Liabilities 334,043 359,626 323,112 440,596 TOTAL LIABILITIES 423,864 464,397 495,015 544,324 NET ASSETS 3,137,503 3,077,150 3,316,326 3,199,456 EQUITY Retained Earnings 883,455 935,842 1,009,137 1,016,469 Restricted Reserves (55,499) (113,579) (160,356) (156,588) Other Created Reserves 8,304 15,176 20,351 12,478 Created Reserves 79,984 89,621 100,390 105,839 Asset Revaluation Reserve 2,221,259 2,150,090 2,346,804 2,221,258 3,137,503 3,077,150 3,316,326 3,199,456 FINANCIALS IN DETAIL 43
PROSPECTIVE STATEMENT OF MOVEMENTS IN EQUITY EQUITY AT END OF PRIOR YEAR 3,012,462 3,012,462 3,155,288 3,134,224 Total Comprehensive Revenue and 125,041 63,721 160,564 65,030 Expense Other Movements 0 967 474 202 Movements in Equity for the Year 125,041 64,688 161,038 65,232 EQUITY AT THE END OF THE YEAR 3,137,503 3,077,150 3,316,326 3,199,456 COMPONENTS OF EQUITY Retained Earnings Retained Earnings at beginning 842,639 842,824 933,575 883,457 Surplus/(Deficit) after taxation for the 39,256 63,721 64,655 65,030 Year Net Transfers to/ from Other Reserves 1,560 28,330 10,433 67,782 Other Adjustments 0 967 474 200 Retained Earnings at end 883,455 935,842 1,009,137 1,016,469 Restricted Reserves Restricted Reserves at beginning (57,552) (57,552) (130,347) (55,499) Net Transfers to/ (from) Retained 2,053 (56,027) (30,009) (101,089) Earnings Restricted Reserves at end (55,499) (113,579) (160,356) (156,588) Restricted Reserves Consists of: Trusts 831 810 886 842 Other Restricted Reserves 4,096 4,042 4,345 4,077 Development Contributions (60,426) (118,431) (165,587) (161,508) Restricted Reserves at end (55,499) (113,579) (160,356) (156,588) Created Reserves Created Reserves at beginning 77,100 77,100 101,166 85,010 Net Transfers to/ (from) Retained 11,189 27,697 19,575 33,307 Earnings Created Reserves at end of Year 88,289 104,797 120,741 118,317 PROSPECTIVE STATEMENT OF MOVEMENTS IN EQUITY (CONTINUED) Created Reserves Consist of: Depreciation Reserves 79,984 89,621 100,390 105,839 Other Special Purpose Reserves 8,305 15,176 20,351 12,478 Created Reserves at end of 88,289 104,797 120,741 118,317 Year Asset Revaluation Reserves Asset Revaluation Reserves at beginning 2,150,275 2,150,090 2,250,894 2,221,258 Net Impact of Revaluations on 85,785 0 95,910 0 Revaluation Reserves Gains/(Losses) Net Transfers to/ (from) Retained (14,802) 0 0 0 Earnings on Asset Disposals Asset Revaluation Reserves at end 2,221,258 2,150,090 2,346,804 2,221,258 Asset Revaluation Reserves Consist of: Heritage 602 602 602 602 Distribution Systems 467,271 361,610 361,610 467,271 Library 1,041 0 0 1,041 Land, Building & Improvements 1,679,277 1,697,173 1,882,826 1,679,462 Roading Network 72,882 90,705 101,766 72,882 Asset Revaluation Reserves at end 2,221,073 2,150,090 2,346,804 2,221,258 EQUITY AT THE END OF THE YEAR 3,137,503 3,077,150 3,316,326 3,199,456 44 TAURANGA CITY COUNCIL ANNUAL PLAN
PROSPECTIVE STATEMENT OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES Receipts from rates revenue 147,604 123,401 129,216 151,740 Subsidies and grants received 11,548 9,396 11,031 14,522 Development and financial contributions 27,141 20,460 19,361 24,334 received Fees and charges received 39,981 62,385 53,324 50,848 Interest received 2,395 1,425 2,012 1,890 Dividends received 431 410 451 407 Receipts from other revenue - - 105 - Total operating cash provided 229,100 217,477 215,500 243,741 Payments to suppliers (89,945) (91,656) (71,839) (97,482) Payments to employees (43,474) (46,799) (43,363) (52,328) Interest paid (20,747) (19,420) (23,613) (21,021) Goods and services taxation (net) (10,934) - - - Total operating cash applied (165,100) (157,875) (138,815) (166,204) PROSPECTIVE STATEMENT OF CASH FLOWS (CONTINUED) Movements of Investments in CCO's (18,802) - - - Purchase of Property, Plant & Equipment (72,167) (152,538) (123,379) (221,806) Purchase of Intangible assets (4,257) - - - Total investing cash applied (95,226) (152,538) (123,379) (221,806) NET CASH FLOWS FROM INVESTING ACTIVITIES (65,948) (156,195) (117,179) (217,938) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings 60,353 136,030 150,918 156,529 Repayment of borrowings (75,401) (75,000) (110,424) (30,000) NET CASH FLOWS FROM FINANCING ACTIVITIES (15,048) 61,030 40,494 126,529 NET INCREASE/(DECREASE) IN (16,996) (35,563) - 56 CASH Cash at the beginning of the year 35,563 35,563 15 15 CASH AT END OF THE YEAR 18,570-15 71 NET CASH FLOWS FROM OPERATING ACTIVITIES 64,000 59,602 76,685 72,910 CASH FLOWS FROM INVESTING ACTIVITIES Receipts from Sale of Property, Plant 13,313 4,356 10,084 13,104 and Equipment Receipts from Sale of intangible assets - - - - Receipts from Sale of investments & CCO repayment of borrowings 15,965 (8,013) (3,884) (9,236) Total investing cash provided 29,278 (3,657) 6,200 3,848 FINANCIALS IN DETAIL 45
FUNDING IMPACT STATEMENT FOR THE YEAR WHOLE OF COUNCIL SOURCES OF OPERATING FUNDING General Rates, Uniform Annual General Charges, Rates Penalties 99,755 104,843 105,947 Targeted Rates 43,512 45,190 47,979 Subsidies and grants for operating purposes 4,452 4,394 4,183 Interest and dividends from investments * 1,834 2,462 2,297 Fees and charges 38,415 34,082 45,726 Local authorities fuel tax, fines, infringement fees, and other receipts * 1,506 1,589 1,584 Total Sources of Operating Funding (A) 189,474 192,559 207,716 APPLICATIONS OF OPERATING FUNDING Payments to Staff & Suppliers 124,876 119,036 146,130 Finance Costs 19,420 23,613 21,021 Other Operating Funding applications 0 0 0 Total Applications of Operating Funding (B) 144,296 142,649 167,150 Surplus/(Deficit) of Operating Funding (A-B) 45,178 49,910 40,566 SOURCES OF CAPITAL FUNDING Subsidies and grants for capital expenditure 4,078 5,756 9,464 Development and financial contributions 20,460 19,361 24,334 Increase/(Decrease) in debt 51,621 42,809 48,616 Gross proceeds from the sale of assets 4,356 10,084 13,104 Lump sum contributions 5,602 457 4,416 Other dedicated capital funding 0 0 0 Total Sources of Capital Funding (C) 86,117 78,467 99,934 APPLICATION OF CAPITAL FUNDING - to meet additional demand 59,225 46,850 94,269 - to improve level of service 54,818 56,429 58,738 - to replace existing assets 23,107 20,218 21,338 Increase/(Decrease) in reserves (5,855) 4,880 (33,847) Increase/(Decrease) of investments 0 0 0 Total Applications of Capital Funding (D) 131,295 128,377 140,499 Surplus/(Deficit) of Capital Funding (C-D) (45,178) (49,910) (40,566) Funding balance ((A-B)+(C-D)) 0 0 0 * Some Items from Local authorities fuel tax, fines, infringement fees, and other receipts have been re-classified as Interest and Dividends from investments from 2016 onwards. Water by Meter is now included under Targeted Rates as opposed to Fees and charges. 46 TAURANGA CITY COUNCIL ANNUAL PLAN
RECONCILIATION OF FUNDING IMPACT STATEMENT AND PROSPECTIVE STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE FOR THE 17/18 YEAR Total Rates from Funding Impact Statement (Whole of ) 143,267 150,032 153,926 General Rates Requirement 99,755 100,024 105,947 Targeted Rates 25,785 25,430 28,272 Targeted Rates for Water Supply 17,727 18,535 19,707 Inflation amount - 6,043 - Total Rates requirement per Prospective Statement of Comprehensive Revenue and Expense 143,267 150,032 153,926 Revenue from Funding Impact Statement (Whole of ) 46,207 42,524 53,788 Revenue funding capital expenditure 9,683 6,183 13,879 Vested Assets 34,431 37,733 37,929 Development Impact Fee revenue 20,460 19,361 24,334 Other Gains & Revaluation 1,016 1,875 605 Total Rates Requirement 143,267 150,032 153,926 Total Revenue per Prospective Statement of Comprehensive Revenue and Expense (includes Asset Development revenue) 255,064 257,708 284,461 Expenditure from Funding Impact Statement (Whole of ) 144,296 142,628 167,150 Depreciation 46,564 50,399 52,281 Total Expenditure per Prospective Statement of Comprehensive Revenue and Expense 191,343 193,027 219,431 Total Capital Expenditure from Funding Impact Statement (Whole of 132,794 113,413 161,242 ) Vested Assets 34,431 37,733 37,929 Total Capital Expenditure 167,225 151,146 199,171 *Water metered (volumetric charge) is now included under Targeted Rates as opposed to Fees and charges. Water (metered base charge) is included under general rates requirement. FINANCIALS IN DETAIL 47