Auckland Council released its unaudited financial results for the June year to the NZX yesterday (because the council has listed debt securities), with more detail to come in 4 weeks.
The deputy auditor-general will complete the audit and issue an audit opinion on 28 September.
Group highlights include:
- Revenue up 11% ($424 million) to $4.129 billion, ($3.705 billion in 2016), including
- Rates $1.641 billion ($1.564 billion)
- Fees & user charges $1.193 billion ($1.083 billion)
- Operating surplus $340 million before gains & losses ($250 million)
- Net debt (after cash on hand) up $486 million to $7.969 billion, but $467 million lower than forecast
- Surplus after tax $640 million ($231 million deficit)
- Total assets up $2.7 billion to $47.36 billion ($44.68 billion)
- Net assets $35.78 billion ($33.65 billion).
Auckland Council Group acting chief financial officer Matthew Walker said the group’s financial performance “shows it is balancing the need for prudent financial management with the investment required to address the growth challenges Auckland faces.
“As a successful & increasingly global city, Auckland’s population is growing rapidly. This continually adds to the demands on our transport, 3 waters & community infrastructure such as libraries & parks. Yet the group results show the council is on track to deliver its largest programme of investment ever over the next decade, based on the adopted 2015-25 long-term plan.
In the last year, the council group (including council-controlled organisations such as Auckland Transport & Watercare Services Ltd) delivered $1.66 billion of investment, including its share of the city rail link, now co-funded by Auckland Council & the Government.
Mr Walker said the council sold down part of its diversified financial assets portfolio in August 2016 and issued debt in $NZ, Euro, Norwegian kroner & $A. Meanwhile, it continued to raise debt through the Local Government Funding Agency. He said low interest rates had contributed to a lower cost of funds during the course of this financial year.
“The council maintained its credit ratings of AA (stable) from Standard & Poor’s, and Aa2 from Moody’s Investor Services, confirming our prudent fiscal management and strong debt-servicing capability. These continue to remain among the strongest credit ratings in New Zealand.
“The council has begun the development of its long-term plan 2018-28. While group debt is projected to reach $11.6 billion by 2025, it will remain at a prudent level relative to our income.
“The group’s asset base is expected to grow from $45 billion to $60 billion over that same period to 2025.”
- $310 million on water & wastewater infrastructure
- $200 million on parks, sports facilities, libraries, community centres & facilities
- $430 million on roads & footpaths, and
- $288 million on public transport.
Attribution: Council accounts & release.