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Financial information

Total council financial statements

Operating Revenue table

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Note:
(1) 2007/08 LTCCP numbers have been updated to reflect the Amended 2006-16 Ten-Year Plan or LTCCP (approved by the Council on 12 June 2007), which includes funding for the new regional economic development agency in relation to the Wellington Regional Strategy.

(2) The operating deficit in the 2007/08 Plan is due to Greater Wellington funding the purchase of rail rolling stock through one of its Council Controlled Organisations (Greater Wellington Rail Ltd) by way of capital grants. These grants are now treated as operating expenditure, but in the Proposed 2007/08 Annual Plan and 2006–16 Ten-Year Plan (LTCCP) they were treated as capital expenditure.

(3) Non-cash items include depreciation, investment impairment, forestry cost of goods sold and unrealised revaluation gains.

Operating expenditure table

Investment overview
Greater Wellington has a significant portfolio of investments comprising:

  • Liquid financial deposits
  • Greater Wellington’s treasury management function
  • Administrative properties eg. depots
  • Forestry and business units
  • Equity investments in the WRC Holdings Group (incl. CentrePort Ltd)
  • Rail rolling stock (passenger trains) and related transport infrastructure

Greater Wellington recognises that, as a responsible public authority, any investments held should be for the long-term benefit of the community, with any risk being appropriately managed. It also recognises that lower
risk generally means lower returns.

From a risk management point of view, Greater Wellington is well aware that its investment returns are exposed to the success or otherwise of its two main investments – the WRC Holdings Group (including CentrePort Limited) and its liquid financial deposits. At an appropriate time in the future Greater Wellington believes that it could continue to reduce its risk exposure by reducing its investment holdings, and use the proceeds to repay debt. The timing of these divestments would be in accordance with Greater Wellington’s
objective to optimise the overall return to ratepayers.

It is important to appreciate that Greater Wellington’s investments contribute approximately 12% to the total level of regional rates. In other words, regional rates would need to be 12% higher were it not for the contribution from Greater Wellington’s investments.

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