Part E: ​Appendices

Glossary

Non-Financial

Local Government Act 2002 – The Local Government Act 2002 provides the legislative framework and powers under which local government authorities operate.

Long-term plan (LTP) – The LTP is a document required under the Local Government Act 2002 that sets out a local authority’s priorities over a 10 year period.

Annual Plan (AP) – The annual plan is produced for each year in between long-term plans to report and consult on variances to the adopted Long-term Plan.

Annual Report (AR) – The purpose of the annual report is to compare activities performed with those intended in the annual plan

Consultation Document – The consultation document is the basis of discussions between Council and its communities about the issues facing the district/area and how council is proposing to address those issues

Infrastructure Strategy – This document covers significant infrastructure issues across the groups of activity and contains 30 years’ forecasted capital and operational expenditure figures. Included in this document will be assets’ useful lives, growth/demand assumptions and assumed levels of service

Asset management plans (AMPs) – AMPs reflect a council’s infrastructure and asset base in terms of future maintenance, renewal and replacement needs

Community Outcomes – Means the outcomes that a local authority aims to achieve in meeting the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions

Growth Assumptions – These are growth forecasts based on a variety of trends which enable Council to predict future growth in the city. In order for Council to plan its infrastructure and asset needs in advance, Council needs to estimate the levels of infrastructure future generations will need.

FinancialTop

Associates – Entities that the Council owns a share of but does not control. Our share of the associates’ surplus/deficit and net assets is recorded in the Group financial statements. The Council’s associates are Basin Reserve Trust (50%), Capacity (50%), Chaffers Marina Holding Limited (11%), Wellington International Airport Limited (34%) and Wellington Regional Stadium Trust (50%).

Cash and cash equivalents – Cashflow and deposits which mature in three months or less.

Capital expenditure (Capex) – Expenditure that results in the creation of a new asset, or increases the life or capacity provided by an existing asset.

External funding for capital expenditure – Funding received from external parties which is recorded as income but used to fund capital expenditure projects.

Net borrowings – Net borrowings is total borrowings less any funds held on deposit.

Net surplus/(deficit) – Net surplus/deficit is the difference between total income and total expenses. It includes both operating revenue and operating expenditure as well as other non-funded items of revenue and expenditure such as capital funding, vested asset income and fair value movements

Operating expenditure – Expenditure related to providing Council Services. This excludes capital expenditure.

Depreciation – An expense charged each year to reflect the estimated cost of using our assets over their lives.

Amortisation – Relates to ‘intangible’ assets such as software (as distinct from physical assets, which are covered by the term depreciation).

Fair value – Essentially reflects the market value of assets or liabilities.

Investment properties – Investment properties are properties that are primarily held by the Council to earn rental income.

Prudential limits – Prudential limits are limits applied to the level of borrowings to ensure we are managing the Council’s assets and liabilities prudently. These limits are outlined in the Investment and Liability Policy and Financial Strategy in the Long-term Plan.

Renewal – Renewal is capital expenditure that relates to the replacement of existing assets

Ring-fenced – Ring-fenced are funds that can only be used for a specific purpose

Upgrade Capital Expenditure – Capital expenditure that improves the level of service or meets additional demand for a service

Funding impact statements (FIS) – FIS sets out the sources of both the operating and capital funding and expenditure for all activities and services.

Operating Expenditure – Expenditure related to providing Council Services. This excludes any capital expenditure.

Unfunded depreciation – The amount of depreciation that is not funded by rates. An example if this is our roading assets that are funded by NZTA and sewerage treatment assets where the operator has responsibility for asset renewal.

Vested assets – Assets that are created by others and passed into Council ownership (e.g. roads built by a developer as part of a subdivision).