Part E: Supporting and financial information

Forecast financial statements

FORECAST STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE

  2017/18
AP
$000		 2018/19
LTP
$000		 2019/20
LTP
$000		 2020/21
LTP
$000		 2021/22
LTP
$000		 2022/23
LTP
$000		 2023/24
LTP
$000		 2024/25
LTP
$000		 2025/26
LTP
$000		 2026/27
LTP
$000		 2027/28
LTP
$000
                       
REVENUE                      
Revenue from rates 296,806 310,705 324,747 347,623 371,361 395,413 423,905 444,977 466,136 482,692 492,353
Revenue from development contributions 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Revenue from grants, subsidies and reimbursements 55,913 40,708 30,382 26,849 55,953 25,147 24,952 25,843 25,487 24,628 24,777
Revenue from operating activities 130,702 142,965 145,521 148,254 152,016 169,767 173,837 180,055 185,212 191,682 198,106
Investments 22,454 24,196 25,861 26,123 27,050 28,129 28,415 28,715 29,015 29,315 29,640
Fair value movement on investment property revalaution 3,058 4,262 4,820 5,408 5,527 5,649 6,036 6,443 6,598 7,037 7,502
Other revenue 1,050 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100
Finance revenue 704 13 13 13 60 154 201 201 201 221 238
TOTAL REVENUE 512,687 525,949 534,444 557,370 615,067 627,359 660,446 689,334 715,749 738,675 755,716
EXPENSE                      
Finance expense 25,420 24,918 30,902 38,175 44,412 50,655 55,155 58,146 62,161 65,378 65,841
Expenditure on operating activities 348,489 366,116 377,785 387,208 397,185 419,962 425,806 439,196 449,541 461,637 471,766
Depreciation and amortisation 106,417 117,158 121,962 133,748 140,387 151,155 166,203 179,400 190,887 199,990 207,160
TOTAL EXPENSE 480,326 508,192 530,649 559,131 581,984 621,772 647,164 676,742 702,589 727,005 744,767
NET SURPLUS FOR THE YEAR 32,361 17,757 3,795 (1,761) 33,083 5,587 13,282 12,592 13,160 11,670 10,949
OTHER COMPREHENSIVE REVENUE                      
Fair value movement - property, plant and equipment - net 122,876 - 166,987 62,166 - 202,142 81,983 - 241,633 99,911 -
Share of equity accounted surplus from associates - - - - - - - - - - -
TOTAL OTHER COMPREHENSIVE REVENUE 122,876 - 166,987 62,166 - 202,142 81,983 - 241,633 99,911 -
TOTAL COMPREHENSIVE REVENUE FOR THE YEAR 155,237 17,757 170,782 60,405 33,083 207,729 95,265 12,592 254,793 111,581 10,949

FORECAST STATEMENT OF FINANCIAL POSITIONTop

  2017/18
AP
$000		 2018/19
LTP
$000		 2019/20
LTP
$000		 2020/21
LTP
$000		 2021/22
LTP
$000		 2022/23
LTP
$000		 2023/24
LTP
$000		 2024/25
LTP
$000		 2025/26
LTP
$000		 2026/27
LTP
$000		 2027/28
LTP
$000
                       
ASSETS                      
                       
Current assets                      
Cash and cash equivalents 1,144 440 279 298 481 336 475 193 425 496 390
Derivative financial assets - - - - - - - - - - -
Receivables and recoverables 48,542 50,140 51,288 52,765 54,554 60,347 62,363 64,782 66,877 69,213 71,345
Prepayments 13,414 13,530 13,975 14,320 14,676 15,683 15,873 16,445 16,853 17,351 17,737
Inventories 932 974 996 1,012 1,041 1,065 1,093 1,118 1,142 1,178 1,211
Total current assets 64,032 65,084 66,538 68,395 70,752 77,431 79,804 82,538 85,297 88,238 90,683
                       
Non-current assets                      
Other financial assets 17,016 14,315 16,020 18,151 19,644 20,615 21,074 21,888 23,251 23,251 23,251
Intangibles 28,306 31,072 34,507 37,237 38,696 37,763 36,472 34,711 34,984 40,821 43,931
Investment properties 221,512 241,013 245,833 251,241 256,768 262,417 268,453 274,896 281,494 288,531 296,033
Property, plant & equipment 7,004,869 7,224,938 7,484,255 7,667,490 7,782,681 8,036,126 8,152,496 8,215,558 8,553,581 8,636,096 8,611,274
Investment in subsidiaries 5,071 5,071 5,071 5,071 5,071 5,071 5,071 5,071 5,071 5,071 5,071
Investment in associates 19,465 19,465 19,465 19,465 19,465 19,465 19,465 19,465 19,465 19,465 19,465
                       
Total non-current assets 7,296,239 7,535,874 7,805,151 7,998,655 8,122,325 8,381,457 8,503,031 8,571,589 8,917,846 9,013,235 8,999,025
                       
TOTAL ASSETS 7,360,271 7,600,958 7,871,689 8,067,050 8,193,077 8,458,888 8,582,835 8,654,127 9,003,143 9,101,473 9,089,708
                       
LIABILITIES                      
                       
Current liabilities                      
Derivative financial liabilities - - - - - - - - - - -
Trade and other payables 62,060 72,154 71,484 76,981 77,516 73,446 72,745 79,305 87,072 76,797 76,076
Revenue in advance 13,132 14,388 14,645 14,920 15,298 17,085 17,494 18,120 18,639 19,290 19,937
Borrowings 269,984 125,000 153,000 126,500 181,000 105,000 115,000 115,000 105,000 100,000 100,000
Employee benefit liabilities and provisions 7,807 8,416 8,661 8,884 9,133 9,390 9,566 9,749 9,945 10,142 10,356
Provision for other liabilities 12,028 8,882 6,746 4,131 3,214 2,593 2,303 2,288 2,309 2,356 2,408
Total current liabilities 365,011 228,840 254,536 231,416 286,161 207,514 217,108 224,462 222,965 208,585 208,777
                       
Non-current liabilities                      
Derivative financial liabilities - - - - - - - - - - -
Trade and other payables 630 630 630 630 630 630 630 630 630 630 630
Borrowings 258,167 506,309 584,863 744,561 783,391 920,059 938,740 989,595 1,084,773 1,085,338 1,061,849
Employee benefit liabilities 1,467 1,311 1,350 1,384 1,423 1,463 1,491 1,519 1,550 1,580 1,613
Provisions for other liabilities 28,110 23,384 19,044 17,388 16,718 16,739 17,118 17,581 18,092 18,626 19,176
Total non-current liabilities 288,374 531,634 605,887 763,963 802,162 938,891 957,979 1,009,325 1,105,045 1,106,174 1,083,268
TOTAL LIABILITIES 653,385 760,474 860,423 995,379 1,088,323 1,146,405 1,175,087 1,233,787 1,328,010 1,314,759 1,292,045
  2017/18
AP
$000		 2018/19
LTP
$000		 2019/20
LTP
$000		 2020/21
LTP
$000		 2021/22
LTP
$000		 2022/23
LTP
$000		 2023/24
LTP
$000		 2024/25
LTP
$000		 2025/26
LTP
$000		 2026/27
LTP
$000		 2027/28
LTP
$000
EQUITY                      
                       
Accumulated funds and retained earnings 5,077,829 5,111,217 5,114,243 5,111,693 5,143,975 5,148,742 5,161,185 5,172,917 5,185,199 5,195,968 5,205,996
Revaluation reserves 1,611,454 1,716,629 1,883,616 1,945,782 1,945,782 2,147,924 2,229,907 2,229,907 2,471,540 2,571,451 2,571,451
Hedging reserve - - - - - - - - - - -
Fair value through other comprehensive revenue and expense reserve 1,648 2,888 2,888 2,888 2,888 2,888 2,888 2,888 2,888 2,888 2,888
Restricted funds 15,955 9,750 10,519 11,308 12,109 12,929 13,768 14,628 15,506 16,407 17,328
                       
TOTAL EQUITY 6,706,886 6,840,484 7,011,266 7,071,671 7,104,754 7,312,483 7,407,748 7,420,340 7,675,133 7,786,714 7,797,663
                       
TOTAL EQUITY AND LIABILITIES 7,360,271 7,600,958 7,871,689 8,067,050 8,193,077 8,458,888 8,582,835 8,654,127 9,003,143 9,101,473 9,089,708

FORECAST STATEMENT OF CASH FLOWSTop

  2017/18
AP
$000		 2018/19
LTP
$000		 2019/20
LTP
$000		 2020/21
LTP
$000		 2021/22
LTP
$000		 2022/23
LTP
$000		 2023/24
LTP
$000		 2024/25
LTP
$000		 2025/26
LTP
$000		 2026/27
LTP
$000		 2027/28
LTP
$000
CASH FLOWS FROM OPERATING ACTIVITIES                      
Receipts from rates - Council 278,112 321,022 323,473 345,825 369,312 390,367 421,547 442,530 463,951 480,460 490,466
Receipts from rates - Greater Wellington Regional Council 60,573 64,436 67,395 72,095 77,026 82,000 87,954 92,269 96,782 100,292 102,241
Receipts from activities and other revenue 140,506 132,378 149,004 151,950 155,754 173,907 177,688 183,809 188,921 195,329 201,608
Receipts from grants and subsidies - operating 9,600 6,673 (3,318) (787) 6,701 6,691 6,717 6,714 6,700 6,693 6,696
Receipts from grants and subsidies - capital 46,313 34,035 33,700 27,636 49,252 18,456 18,235 19,129 18,787 17,935 18,081
Receipts from investment property lease rentals 11,214 11,215 11,215 11,215 11,215 11,215 11,215 11,215 11,215 11,215 11,215
Cash paid to suppliers and employees (317,801) (333,722) (341,385) (342,870) (354,462) (377,620) (380,627) (386,814) (396,569) (414,817) (419,103)
Rates paid to Greater Wellington Regional Council (60,573) (64,436) (67,395) (72,095) (77,026) (82,000) (87,954) (92,269) (96,782) (100,292) (102,241)
Grants paid (45,651) (38,777) (42,801) (45,427) (43,651) (44,402) (45,207) (48,180) (48,110) (51,144) (52,080)
                       
NET CASH FLOWS FROM OPERATING ACTIVITIES 122,293 132,824 129,888 147,542 194,121 178,614 209,568 228,403 244,895 245,671 256,883
                       
CASH FLOWS FROM INVESTING ACTIVITIES                      
                       
Dividends received 11,240 12,981 14,646 14,908 15,835 16,914 17,200 17,500 17,800 18,100 18,425
Interest received 704 13 13 13 60 154 201 201 201 221 238
Proceeds from sale of property, plant and equipment 10,350 2,000 8,000 9,500 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Purchase of Intangibles (8,162) (6,918) (7,822) (7,641) (6,485) (4,259) (4,293) (4,324) (5,081) (7,472) (4,818)
Purchase of property, plant and equipment (187,584) (239,010) (218,833) (257,195) (252,773) (202,610) (197,604) (235,957) (281,237) (188,636) (183,504)
                       
NET CASH FLOWS FROM INVESTING ACTIVITIES (173,452) (230,934) (203,996) (240,415) (241,363) (187,801) (182,496) (220,580) (266,317) (175,787) (167,659)
                       
CASH FLOWS FROM FINANCING ACTIVITIES                      
                       
New borrowings 313,020 250,815 376,538 258,198 246,330 187,168 209,681 155,855 200,178 110,565 81,511
Repayment of borrowings (224,977) (126,000) (269,984) (125,000) (153,000) (126,500) (181,000) (105,000) (115,000) (115,000) (105,000)
Interest paid on borrowings (26,863) (26,915) (32,607) (40,306) (45,905) (51,626) (55,614) (58,960) (63,524) (65,378) (65,841)
                       
NET CASH FLOWS FROM FINANCING ACTIVITIES 61,180 97,900 73,947 92,892 47,425 9,042 (26,933) (8,105) 21,654 (69,813) (89,330)
                       
Net increase/(decrease) in cash and cash equivalents 10,021 (210) (161) 19 183 (145) 139 (282) 232 71 (106)
Cash and cash equivalents at beginning of year (8,877) 650 440 279 298 481 336 475 193 425 496
                       
CASH AND CASH EQUIVALENTS AT END OF YEAR 1,144 440 279 298 481 336 475 193 425 496 390

FORECAST STATEMENT OF CHANGES IN RESTRICTED / RESERVE FUNDSTop

  OPENING BALANCE
2018/19
$000		 DEPOSITS

$000		 EXPENDITURE

$000		 CLOSING BALANCE
2027/28
$000		 PURPOSE
           
SPECIAL RESERVES AND FUNDS          
Reserve purchase and development fund 782 0 0 782 Used to purchase and develop reserve areas within the city.
City growth fund 2,862 19,338 (19,338) 2,862  
Insurance reserve 4,906 16,577 (8,291) 13,192 Allows the Council to meet the uninsured portion of insurance claims
Total special reserves and funds 8,550 35,915 (27,629) 16,836  
           
           
TRUSTS AND BEQUESTS          
A Graham Trust 3 1 - 4 For the upkeep of a specific area of Karori Cemetery
A W Newton Bequest 334 172 (150) 356 For the benefit of art (Fine Arts Wellington), education (technical and other night schools) and athletics (rowing)
E A McMillan Estate 6 - - 6 For the benefit of the public library
E Pengelly Bequest 16 5 - 21 For the purchase of children's books
F L Irvine Smith Memorial 7 2 - 9 For the purchase of books for the Khandallah Library
Greek NZ Memorial Association 5 2 - 7 For the maintenance and upgrade of the memorial
Kidsarus 2 Donation 4 1 - 5 For the purchase of children's books
Kirkaldie and Stains Donation 17 - - 17 For the beautification of the BNZ site
QEII Memorial Book Fund 22 10 - 32 For the purchase of books on the Commonwealth
Schola Cantorum Trust 8 3 - 11 For the purchase of musical scores
Terawhiti Grant 10 - - 10 To be used on library book purchases
Wellington Beautifying Society Bequest 14 - - 14 For the greening of Taranaki Street
Total trusts and bequests 446 196 (150) 492  
           
Total restricted funds 8,996 36,111 (27,779) 17,328