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 | |
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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 | |
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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 | |
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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 | |
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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 | |
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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 |