A Layman's version of the Annual Accounts 2010/11

From: Bryan Pepperell [mailto:Bryan.Pepperell@wcc.govt.nz]

Sent: Monday, 29 August 2011 2:39 p.m.

To: Peter Garty

Cc: GRP: Councillors

Subject: FW: A Layman's version of the Annual Accounts

CFO Wellington City Council

Dear Peter,

Recently I raised the issue of a Layman's version of the Annual accounts with you.

As we are about to bring the 2010/11 Financial Statements and Statements of Service Performance to Strategy and Policy tomorrow I would like a layman's short overview in plain English. Please answer the following questions:

1)What is the value of the realisable assets that Council has? That is what could be realistically sold in an emergency to raise cash?

2) What is the total income of Council from rates?

3)What is the total non-rateable income and a breakdown of that income?

4)What is Council's debt in total, including the Council owned trading organisations and Trusts? Could you separate Council's debt please?

5)What does it cost to run Council as a Corporation? The total wage and salary bill please.

6) How much do we spend on outside

contracting, consulting and legal services?

7) What is the total

interest bill for Council borrowings and its other entities? Please give a breakdown.

8)What does it cost to deliver all Council's services and what percentage of the total is wages and salaries?

Regards

Councillor Pepperell

To: Bryan Pepperell
Cc: GRP: Councillors
Subject: RE: FW A Layman's version of the Annual Accounts

Councillor Pepperell

Responses:

1) Total realisable assets = $313m (Investment property of $204m plus Airport investment of $109m - other investments in subsidiaries and associates would not be easily realisable)

2) Income from rates = $223m (53% of total income)

3) Total non-ratable income = $193m. Broken down as follows:

	2011
	$000
Rendering of services	81,271
Grants, subsidies and reimbursements - capital	54,741
Investment property lease rentals	13,452
Fines and penalties	11,689
Dividend from investment in associates	9,061
Grants, subsidies and reimbursements - operating	6,261
Sale of goods	5,600
Vested assets	4,256
Development contributions	2,708
Petrol tax	1,167
Gain on disposal of property, plant and equipment	1,009
Release of provisions	569
Other <$500k	1,690
Total	193,474

4) Gross borrowings – cash and cash equivilents = net borrowings

The gross borrowings Council = $331.4m (Group gross borrowings = $332.0m)

Net borrowings Council = $311.8 m (Group net borrowings = $308.1m)

5) Total wages and salaries = $84.5m (including Councillor and community board remuneration, superannuation contributions, retirement costs and other personnel costs)

6) Cost of consultants, legal fees and contractors = $9.9m

7) Interest costs for Group is $18.3m. Only $42k is CCOs (St James) - the rest is Council.

8) Cost to deliver Council services (total expenses) = $400.0m. Wages and salaries (including Councillor and community board remuneration, superannuation contributions, retirement costs and other personnel costs) is 21.1%

Regards

Peter

Peter Garty
Chief Financial Officer
E-mail: peter.garty@wcc.govt.nz
Phone: +64 4 803 8785

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