Ann: FLLYR: AKC: Full Year Results to 30 June 201

• Release Date: 30/08/12 11:11
• Summary: FLLYR: AKC: Full Year Results to 30 June 2012
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AKC
30/08/2012 09:11
FLLYR

REL: 0911 HRS Auckland Council

FLLYR: AKC: Full Year Results to 30 June 2012

The period July 1 2011 to June 30 2012 - marks the completion of Auckland
Council's transition from eight organisations to one. Aucklanders can have
confidence that their council delivered, and will continue to deliver, on the
promise of amalgamation.

For the period Auckland Council Group reports a deficit after tax of $233m.
Included in this result is $167m relating to unrealised costs of contracts to
fix future interest rates at current historical lows, and a further $83
million for asset impairment, legacy costs and provisions including
weathertightness. This provides certainty for the Group and ratepayers as we
embark on the largest capital investment programme in the region's history.

The Group's assets increased by $1.5 billion as a result of new acquisitions
and revaluations. Continued slow economic growth across the Auckland region
reduced non-rate revenue from property developer contributions and vested
assets. Net cash flow from operating activities was $280 million in the 12
months.
Our successes and continued delivery would not have been possible without our
staff who have worked incredibly hard through a period of almost continuous
change. Their continued efforts have ensured that our service level has
remained of high quality, while providing value for money. They have enabled
our exciting innovations and are building an organisation Auckland can be
proud of.
Another significant achievement in the period was developing and signing off
the Auckland Plan - our 30-year prospectus for the region. This world-class
city plan contains the big-picture, joined-up thinking Auckland has lacked in
the past. It includes the Southern Initiative, a plan which identifies stable
housing, job growth, skills development and environmental enhancement in
South Auckland.

We began implementing the Auckland Plan during the period, which involves
ongoing dialogue with central government agencies, infrastructure network
providers, other private sector organisations, and communities. We adopted
the City Centre Masterplan, Waterfront Plan (prepared by Waterfront Auckland)
and council's Economic Development Strategy, which sets the roadmap for how
Auckland does business over the next 10 years.

We also signed off on our 2012-2022 Long-term Plan ('LTP'). This ten-year
plan for $59 billion of operational and capital expenditure outlines how
Auckland Council intends to keep its books firmly in balance. Some $1.7
billion in savings are identified within this plan.
Work progressed during the year on the Auckland Unitary Plan, which will
replace all the district plans (excluding that of the Hauraki Gulf islands),
and regional policies of the eight former councils, with a single document.
This will transform the way people engage with the council on planning, land
use and resource consent matters.
Council has a higher credit rating than most of the country's entities, with
the exception of the New Zealand Government, and we aim to keep it that way.
Standard and Poor's looked at the budget assumptions within our LTP earlier
this year and maintained our credit rating at AA, which is higher than that
of the major domestic banks. This credit rating has now been supported by a
similar view from Moody's Investors Service.

We have now completed one of the largest transitions in New Zealand history,
put in place a new innovative governance model and planning regime,
successfully hosted the Rugby World Cup 2011, revalued 510,000 of our city's
homes and business premises and began developing a 'can do' culture -
significant achievements all while maintaining operational stability.

The Rugby World Cup was a particular highlight in the period. Auckland acted
as the hub of the tournament over the six weeks, providing our CCOs with
challenges and opportunities for the region's infrastructure and resources
such as transport, business programmes, tourism, training venues and support
events.
We pulled together to ensure the success of this event was felt by all in the
region, bearing out that a visitor economy and major events will be a key
driver of the region's economic growth.

Auckland Council is now focused on transforming our organisation and we have
defined how we will continue to improve our delivery. Successful
transformation will free up the resources needed for us to deliver on the
Auckland Plan, the strategy to create the world's most liveable city, and
also deliver value for money for ratepayers.

We are:
o Transforming the customer experience by putting the customer at the heart
of our organisation
o Moving from operational stability to operational excellence
o Creating a high performance organisation that works for all Aucklanders

We have identified 24 opportunity areas to do things as one organisation that
we could not as eight separate legacy councils, which will lead to a more
innovative, effective and focused council.

As an organisation, Auckland Council is still young but we have come through
some tough challenges and changes. We now have the expertise and products in
place to enable the Auckland region to achieve ongoing success.
End CA:00226666 For:AKC    Type:FLLYR      Time:2012-08-30 09:11:02