Statement of Intent
2022/2023
1
Contents 1
Foreword
3
2
Strategic Objectives
4
3
Nature and Scope of Activities
5
4
Key Areas of Focus for the 2020/2021 Year
13
5
Performance Measures
a. Balanced Scorecard
15
b. Financial
16
c. Reporting
16
6
The Boards Approach to the Governance of Bay Venues
17
7
Board Performance Reviews
18
8
Ratio of Consolidated Funds
18
9
Estimate of Commercial Value
18
10
Accounting Policies & Other Compliance
18
11
Dividend Policy
18
12
Procedures for Acquisition of Other Interests
19
13
Other Matters Agreed as Between Directorate and the Shareholders
19
14
Transactions between Related Parties
19
15
Compensation from Local Authority
19
16
Schedule 1: Enduring Statement of Expectations
20
17
Schedule 2: Annual Letter of Expectation FY23
21
2
1. Foreword
I have pleasure, on behalf of Bay Venues Limited (Bay Venues), in introducing an updated Statement
of Intent (SOI) for the 2022/2023 year.
As Tauranga City Council’s (TCC) largest Council Controlled Organisation (CCO), Bay Venues play a
major role in contributing to the wellbeing of the people of Tauranga Moana. We are the kaitiaki of a
strategic network of community facilities. Our facilities and the experiences we provide, enhance the
quality of life for residents of, and visitors to, Tauranga Moana and the Bay of Plenty.
This Statement of Intent (SOI) is presented in accordance with the requirement of Section 64 (i) of the
Local Government Act 2002 and incorporates the expectations of TCC as outlined in the revised
Enduring Statement of Expectations adopted in December 2018 along with the annual Letter of
Expectations dated 13 December 2021. It outlines Bay Venues objectives, nature and scope of
activities undertaken, and the performance targets by which we will be measured for the year 1 July
2022 to 30 June 2023.
This is the first SOI produced by the new Bay Venues Board that was appointed in July 2021.
It is fair to say that the last 6-8 months has been a difficult time for the Bay Venues business. However,
despite the challenges of the current trading environment highlighted by the Covid pandemic, we wish
to assure TCC that the Board, executive and staff of Bay Venues remain fully committed to delivering
exceptional outcomes to the people and communities of Tauranga Moana. The Board is also pleased
with the strategic re-focusing work that has been completed to date and the recruitment of new CEO,
Chad Hooker.
This document will outline Bay Venues strategic approach to meeting Council’s expectation of driving
significant benefits for the community.
The organisation has had its most difficult year ever during 2021/22 with Covid restrictions taking a
heavy toll on financial and operational performance. Restrictions throughout the past year included a
three-week lockdown, capacity limits on all venues and the large indoor events being prohibited
between January and mid-April 2022. All of this has not only had a negative impact on Bay Venues
finances, but it has also had a major negative impact on the confidence of activity and event organisers
more generally as well as the general public.
It is anticipated that the business may take some time to recover to pre-Covid performance, but we
remain hopeful that we are now through the worst of things and that the situation will improve in
2022/23. However, given the ever-changing landscape that government restrictions in response to the
Covid pandemic have on our operations and our customers, we would welcome the opportunity to
view this SOI as a ‘living document’ as we move through the year.
Simon Clarke Chair
Bay Venues
3
2. Strategic Vision and Purpose
Our Vision
The Best Venues for the Bay.
Our Mission
We are the Kaitiaki of Tauranga’s Network of Community Facilities.
Our Purpose
Connecting our Community through Exceptional Experiences.
Our Values
Manaakitanga | Service
Whakawhanaungatanga | Relationships Kaitiakitanga | Caring
He Toi Tangata | Excellence
We acknowledge TCC’s Purpose and Values and will ensure our Bay Venues strategic focus is aligned
with this. To achieve our Vision, Mission and Purpose we will need to work in partnership with TCC
and collaborate with a range of partners throughout the wider community.
TCC Purpose
We’re here to make Tauranga better.
TCC Values
Pono / Integrity – We do what we say we will do.
Manaakitanga / Respect – We listen to all views and show we care.
Whaia te Tika / Service – We do the right thing for the community and each other.
Whanaungatanga / Collaboration – We work together and create connections.
4
3.
Nature and Scope of Activities
Bay Venues core business is venue ownership and management of community facilities and the
operation of venue-based businesses, programmes and services. Bay Venues is also in the business of
providing event services and hosting events within its venues.
Assets under Bay Venues management are worth approximately $125 million and the business
employs over 320 full time, fixed term, part-time, and casual staff.
We welcomed over 2.1 million visitors to our facilities in the 2019/20 year, a reduced number of 1.6
million users in 2020/2021 and 1.4 million (projected) in 2021/22 because of Covid. We will continue
to work hard to welcome members of our community and visitors to our facilities during 2022/2023.
Bay Venues owns and/or manages twenty-four facilities comprising five aquatic facilities, a Stadium
and ancillary buildings at Baypark, one large contemporary multi-purpose recreation and event centre,
two indoor sports recreation facilities, three community centres, two community share facilities, eight
community halls and a high-performance sports training centre.
Aquatic Facilities Community Halls & Centres Indoor Sports Facilities
Other
(5)
(11)
(5)
(3)
Baywave
Trustpower Baypark
Arataki Community Centre
Trustpower Arena
Stadium
Mount Hot Pools
University of Waikato
Elizabeth St Community Centre QEYC & Memorial Hall
Adams Centre for High
Performance
Greerton Pools
Papamoa Community Centre
Mount Sports Centre
Pavilions
Memorial Pool
Papamoa Sports & Rec Centre Aquinas Action Centre
Otumoetai Pool
Bethlehem Hall
Merivale Action Centre
Matua Hall
Greerton Hall
Welcome Bay Hall
Tauriko Hall
Waipuna Park Pavilion
Cliff Rd Building
5
Aquatic Facilities
Baywave
This is an aquatic and leisure centre, recognized regionally as providing a variety of recreational &
leisure, competition, aquatic education, exercise, health & wellbeing activities. The configuration of
the lap pool also accommodates synchronised swimming, water polo and underwater hockey as well
as regional and national aquatic events. The venue is home to a number of water-based sporting
clubs/squads. In 2019 the facility underwent a comprehensive maintenance closure which included
the installation of an aqua play facility for children. The next maintenance closure is scheduled for
early 2023 to undertake pool maintenance, skylight replacement, new non-slip flooring and to replace
failing water pipes.
Several secondary business units operate within the complex which are complimentary to the overall
purpose of the facility:
• Learn to Swim (including water safety lessons)
• Clubfit (health & fitness club)
• Café
• Merchandise
• Massage Therapy
Mount Hot Pools
An iconic and unique hot saltwater facility and world-class tourist attraction, providing rest, relaxation,
and rejuvenation/rehabilitation for a broad range of visitors. The Mount Hot Pools also provides
several physical therapy options for the general public including massage therapy, aqua walking and
aquarobics.
Greerton Aquatic & Leisure Centre
An aquatic and leisure centre, providing a variety of fun, safe, well-maintained aquatic and therapy
activities for the general public (primarily local). The 18m hydrotherapy pool is popular for rehab and
senior adults. Aquatic Evolution Tauranga are anchor tenants of the facility. Other activities which
complement the centre include:
• Learn to Swim (including water safety lessons)
• Aqua aerobics
• Clubfit (health & fitness club)
The facility is currently undergoing an extensive refurbishment including new non-slip flooring,
seismic strengthening, new changing facilities and a reconfigured entrance. In addition will be new
signage and repainting the pools and interior and exterior of the facility.
Memorial Pool
An outdoor seasonal facility with a lap and learners pool, BBQ facilities and green space, providing a
safe, clean, maintained environment for families and recreational swimmers to enjoy during the
summer months. This pool is at end of life and scheduled to be replaced by a new aquatic complex in
Memorial Park in the coming years.
Otumoetai Pool
Otumoetai Pool provides a safe, clean, well-maintained facility servicing the local community, in
particular the neighbouring College during school hours and the anchor tenants, Evolution Aquatics
Tauranga who are high users of the facility. This is an old facility and we are starting to encounter
more significant maintenance issues. Planning for its future will need to be considered.
6
BaySwim
Bay Venues delivers a quality Learn to Swim programme catering for all ages at Baywave and Greerton
Aquatic and Leisure Centres. In addition, BaySwim also provides Water Safety Education for primary
school groups as part of our funded Water Safety NZ’s ‘Water Safety for Life’ programme.
7
Indoor Sports Facilities
Trustpower Arena
The Trustpower Arena is the key sporting venue for indoor sports such as basketball, volleyball, futsal
and premier netball. The six-court side of the facility has a focus on community sport while the three-
court facility also gets used extensively for community sport when not being used to host events. The
facility also provides a range of pay for play sports leagues and programmes that service the
community. Within the facility is a licensed café providing quality food and beverage service.
Aquinas Action Centre (Community Share Facility)
Situated on the grounds of Aquinas College, the facility features a single court gymnasium suitable for
hosting sport, recreational and cultural activities outside of agreed school access hours.
Merivale Action Centre (Community Share Facility)
This facility is located on the grounds of Merivale Primary, it features a single court gymnasium
suitable for hosting sporting / recreational groups and community activities.
Mount Sports Centre
Located at Blake Park, this facility features a single court gymnasium suitable for hosting sporting and
recreational groups, community activities and minor events. The facility is also home to Tauranga City
Basketball’s office. This is an old facility and its future is being considered as part of the Blake Park
master plan.
Queen Elizabeth Youth Centre (including Memorial Hall)
Located at Memorial Park, this facility provides the city with a multi-court venue suitable for hosting
sporting & recreational groups. cultural and community activities. The venue also hosts a variety of
regional and national tournament and events. Pay for play sports leagues and centre-run programmes
are also provided at this venue. Planning is underway for the redevelopment of the QEYC to include
more court space along with a new aquatics complex, gym and café.
Community Centre-Run Programmes
Bay Venues runs several community focused programmes across the network for pre-schoolers,
children, youth and adults including the popular Tumble Time, Funky Fundays, Oddball, coaching
clinics, sports days, birthday parties, social badminton and more.
Sports Leagues
Bay Venues organises sports leagues both at the Trustpower Arena and Queen Elizabeth Youth Centre
for indoor netball, fastnet, football, and turbo touch.
8
Community Halls & Centres
Arataki Community Centre
This venue provides a high quality, versatile indoor space of varying sizes and flooring as well as
equipment, to enable community groups to host their activities. During the weekdays, PlayTime hosts
an OSCAR programme at the facility. Consideration is currently being given to possible expansion of
the facility to cater for increasing demand for space.
Bethlehem Hall
This venue is primarily used for local community groups to host a variety of activities. Private functions
also use this venue.
Cliff Road Building
This building provides a space for hire and is home to No Compromise box fit group and community
dinners. It is also a storage area for the petanque club. The facility is in poor condition and will only
operate in the short term until the future of this site is decided.
Elizabeth St Community & Arts Centre
This is a facility for community groups to host a variety of activities. It also provides space for
individuals to host private functions. The facility is in average condition and it’s future will be
considered in conjunction with Council’s investment in the new Civic Precinct.
Greerton Hall
This is a facility for local community groups to host a variety of activities. It also provides space for
individuals to host private functions. Greerton Hall is also used as office space for Greerton Village
Mainstreet.
Matua Hall
This venue provides space for local community groups and individuals to host a variety of activities
and private functions. During the weekdays, PlayTime hosts an OSCAR programme at the facility.
Papamoa Community Centre (at the Library)
This venue provides a high quality, versatile indoor space of varying sizes and flooring as well as
equipment, to enable community groups to host their activities. During the weekdays, PlayTime hosts
an OSCAR programme at the facility. The venue also provides visitors with useful information
including activities and services available in the community.
Papamoa Sports & Recreation Centre
Located at Gordon Spratt Reserve, this indoor facility has rooms of varying sizes as well as a range of
equipment, to enable community groups to host their activities. There is also a commercial kitchen
and licensed bar for groups, businesses and individuals to host functions. During the weekdays,
PlayTime hosts an OSCAR programme at the facility.
Tauriko Hall
This hall provides space for local community groups to host a variety of activities and provides a venue
for individuals to host private functions. During the weekdays, Schools’ Out hosts an OSCAR
programme at the facility. The facility is in poor condition and will be replaced in due course when a
new community centre can be established in the Tauriko area.
9
Waipuna Park Pavilion
This pavilion is for the users of Waipuna Park to utilise for registrations, after match functions and
meetings at no charge. Other community groups can also utilise the facility to host their activities.
Welcome Bay Hall
These venues provide space within the local community for community groups to host a variety of
activities. They also provide space for individuals to host private functions.
10
Events
Trustpower Arena
In addition to its purpose as a community indoor sports hub, the three-court side of the Arena acts as
the key events facility for the region. When combined with the six-court side of the facility the Arena
is a versatile multi-purpose venue with the ability to host any type of event – from community and
national sporting fixtures through to trade shows, conferences, gala dinners, corporate hospitality and
concerts.
Trustpower Stadium, Baypark
This is Tauranga City’s only significant outdoor stadium. It has the capacity for crowds of up to 19,000
people inclusive of seated and corporate hosting areas. It features a 480-metre oval clay speedway
track and a turf area (inside the track). The primary activity is Speedway race meetings (15-17 per
annum). Trustpower Stadium is also a venue for other events and activities suited to outdoor spaces
(drifting and outdoor concerts etc). Corporate boxes and a Premium Lounge are also available for
businesses to utilise for hosting, functions or meetings. A master plan is currently underway to
consider the future use of the wider Baypark site and how it can best be utilised to benefit the
community.
While Trustpower Baypark is regarded as one of the best equipped Speedway venues in New Zealand
with a fast, wide clay track and a large well serviced pit area it is showing its age and significant future
investment will be required to maintain it. A Promoter is contracted to promote and operate
Speedway events at Baypark.
Trustpower Stadium Lounge
The Stadium Lounge is a self-contained venue adjoined to the Baypark Stadium offering a secure and
private environment to host public and private functions. Suitable for meetings, conferences, gala
dinners, school balls, private functions, weddings and small to medium sized trade shows, this venue
can comfortably accommodate up to 500 people for dinner or 900 for performances. For major
stadium events, this facility offers the client added flexibility for hosting corporate hospitality or pre
and post event activities.
Bay Events
This business unit is primarily responsible for attracting events to Bay Venues facilities. Venue hire,
corporate hospitality, signage, corporate boxes, outdoor space hire and event support make up the
products and services offered by Bay Events.
Bay Catering
This business unit primarily provides catering services at venues managed by Bay Venues as well as
some off-site catering at other venues and events. Bay Catering also operates food and beverage
outlets throughout the Trustpower Baypark venue as well as the cafes at Trustpower Arena and
Baywave. Bay Catering also have contracts with the Ministry of Education to provide school lunches
to children at schools throughout the Bay of Plenty.
Bay Audio Visual
A sound, lighting and audio-visual equipment and support business unit that provides services
primarily at the Trustpower Arena, Trustpower Stadium Lounge, Trustpower Stadium and some
external off-site events and venues.
11
Associated Activities Bay Venues operates several venue-based business units including:
University of Waikato Adams Centre for High Performance
Based at Blake Park opposite Bay Oval, The University of Waikato Adams Centre for High Performance
is a high quality facility of over 2,500 m2 that include a 652m2 gym, plunge pools, physiotherapy,
massage and rehabilitation rooms, a sport science laboratory with performance testing, research and
acclimatisation facilities, meeting rooms and an athlete's lounge. It caters for a wide range of
athletes, high performance organisations, sports science research and athlete medical support
services. Current tenants of the Centre include NZ Rugby, BOP Rugby, Body in Motion High
Performance Sports and the University of Waikato. Strong demand for space in the facility along with
potential development on neighbouring sites has prompted investigations into potential expansion
options for the facility.
Clubfit
This is made up of two gymnasiums located at Baywave and Greerton Aquatics Centre. Clubfit
provides support and fitness programming to members who have access to mid to high quality
equipment.
Merchandise
Bay Venues operates small retail outlets at its aquatics facilities selling swimming apparel and
associated products.
BayStation
BayStation is a family entertainment business that operates four different entertainment products
including Blokarts, Drift Trikes, Paintball and Lasertag. The operation complements the range of
activities on offer at Baypark.
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4.
Key Areas of Focus for 2022/23
Bay Venues acknowledges TCC’s request to focus our business activity to contribute to the following
TCC Community Outcomes:
▪
We have a well planned city, with specific reference to supporting planning around the
Tauranga Domain, Blake Park and Baypark
▪
We are inclusive, with specific reference to strengthening mana whenua relationships
▪
We value and protect our environment, with specific reference to reducing greenhouse gas
emissions
We also note that TCC have asked Bay Venues to ensure its financial reporting is clear and transparent
and that Board professional development is undertaken.
In FY23 Bay Venues will continue to develop and execute robust business plans and innovative
initiatives that support and deliver the overall objectives of the Bay Venues Strategic Plan.
Key Goals
Primary Goal
1.
Community Benefit – We host a wide range of successful activities
and events (sport, culture, service, recreation and business) within
our facilities that collectively enhance the social, cultural and
economic wellbeing of Tauranga.
Supporting Goals
2.
High Quality Facilities – Our facilities and assets are safe, well
maintained, professionally managed and fit for purpose.
3.
A High Performing Organisation – We strive for excellence and
foster collaboration and partnership to achieve the best possible
outcomes.
Objectives
Community Benefit
1.
Host at least 1.6 million visits to our facilities. We will provide
analysis broken down by facility type and type of activity.
2.
Host at least TBC events and activities* in our facilities across a range
of activity types.
3.
Support at least 10 diversity and inclusion initiatives during the
year.
4.
Achieve a customer feedback rating of >85%.
5.
Have no preventable serious harm incidents in our facilities.
Strategic Objectives
▪
Develop a Wellbeing Reporting Framework in partnership with TCC.
*Reporting methodology to be confirmed. Target will be comparable with 2020/21 result.
13
High Quality Facilities
6.
Have no preventable unplanned facility closures.
7.
Deliver our capital and renewals programme to business case.
Strategic Objectives
▪
Develop a long-term Venue Strategy in partnership with TCC.
▪
Develop a Baypark Masterplan in partnership with TCC.
▪
Develop and implement a Sustainability Plan (including a target to
reduce greenhouse gas emission).
▪
Be TCC’s strategic delivery partner for community facilities and work
collaboratively with them on key strategic projects.
A High Performing Organisation
8.
Achieve our budgeted financial result.
9.
Meet regularly with TCC management, key facility users and mana
whenua.
Strategic Objectives
▪
Agree Memorandum’s of Understanding with key Iwi and mana
whenua that will include the kaupapa (purpose) and proposed
outcomes.
▪
Implement an easily understood and transparent funding-finance
model.
▪
Implement a High Performance Programme for key staff.
▪
Implement a Technology Roadmap.
14
6.
Performance Measures
a.
Balanced Scorecard
Activity
Target
Weighting
Community Benefit
Host >1.6 million visits to our facilities.
50%
Host >TBC events and activities.
Support >10 inclusivity & diversity initiatives.
Ach
ieve a customer feedback rating >85%.
High Quality Facilities
No preventable serious harm incidents in our
20%
facilities.
No preventable unplanned facility closures.
Capital and renewals programme on time and
on budget.
A High Performing Organisation Achieve Budgeted EBITDA
20%
Strategic Objectives
All FY23 Strategic Objectives are completed.
10%
15
b.
Financial
Bay Venues Ltd
Budget 21/22
Forecast 21/22
Budget 22/23
Forecast 23/24
Forecast 24/25
Profit & Loss
(000's)
Total
Total
Total
Total
Total
Revenue
Us er Fees a nd Cha rges
21,416
16,361
18,848
19,954
20,824
TCC Communi ty Outcome Subs i dy
2,916
3,256
4,030
4,268
4,519
Total Revenue
24,332
19,617
22,877
24,221
25,343
Les s Total expendi ture before i nteres t a nd
24,331
22,550
24,600
25,829
26,604
Depreci a tion
EBITDA Profit/(Loss)
1
(2,933)
(1,722)
(1,608)
(1,261)
BVL Funded Depreci a tion
823
616
677
877
813
BVL funded Debt Servi ci ng
205
414
621
659
724
Suplus/(Deficit) - after BVL capital costs
(1,027)
(3,963)
(3,020)
(3,145)
(2,799)
Add ba ck: Adjus tments for fundi ng
Renewa l s Gra nt
6,782
6,782
10,278
5,430
3,126
Debt Servi ci ng Gra nt
258
258
258
258
258
Debt Retirement Gra nt
194
194
344
344
344
Les s : Other Depn a nd debt s ervi ci ng
Depreci a tion
5,267
5,267
6,424
6,653
6,883
Debt Servi ci ng
380
380
380
380
380
Net Suplus/(Deficit)
561
(2,375)
1,057
(4,489)
(6,678)
c. Reporting
Bay Venues is committed to supporting TCC’s strategic priorities and objectives. Bay Venues will
endeavour to respond promptly and appropriately on issues raised by TCC.
Bay Venues will provide TCC with the following information:
i.
Statement of Intent (SOI)
Provide TCC with a draft SOI by 1 March 2022 and a final SOI by 30 July 2022
ii.
Annual Report
Provide an Annual Report to TCC within two months after the end of the financial year. This
will comply with section 68 of the Local Government Act 2002 and include the following:
a. Board report including summary of the financial results, a report of the
operations, a comparison of performance in relation to objectives and any
recommendation as to dividend;
b. Audited financial statements for the financial year in respect of the Company,
and;
c. The Auditor’s report on:
i.Those financial statements; and
ii.The performance targets and other measures by which performance has
been judged in relation to the objectives.
d. The audited financial statements shall consist of:
16
i. Statement of Financial Position; and
ii. Statement of Comprehensive Income; and
iii. Statement of Movements in Equity; and
iv.Statement of Cashflows; and
v.Disclosure of Related Party Transactions; and
vi.Notes to the Financial Statements; and
vii.Such other statements as may be necessary to fairly reflect the financial
position of the Company and its subsidiaries, the resources available to the
Company and its subsidiaries and the financial results of the operations of the
Company and its subsidiaries.
The annual report is to be presented in the format prescribed by TCC to enable consolidation
into the Group.
iii.
Quarterly Reports
As soon as practicable after the conclusion of each quarter, Bay Venues will provide TCC with
a report of performance against the SOI including:
a.
Summary of Financial Performance
b.
Summary of Financial Position
c.
Report on non-financial KPI’s year to date
d.
Commentary on performance for the preceding quarter
e.
Commentary on expected performance for the next quarter
A Quarterly Report will not be required for Q4 where the Annual Report is provided instead.
iv.
Quarterly Meetings
Upon request by TCC, members of the Board of Bay Venues will meet with the TCC
Commissioners and/or their appointed representative(s) quarterly in a confidential, informal
workshop to discuss and review issues of common interest.
v.
Half Yearly Governance to Governance Meeting
The Board of BVL will meet with the full Council of Elected Members/Commissioners of TCC
every six months in a confidential, informal session to discuss and review any issues of
common interest.
vi.
Half Yearly Mayor/CEO to Chair/CEO Meeting
The Commission Chair and CEO of TCC will meet with the Chair and CEO of Bay Venues every
six months, three months before or after the Governance-to-Governance meeting, to discuss
and review any issues of common interest.
vii.
No Surprises
Notwithstanding the reporting requirements the Board will operate on a ‘no’ surprises’ basis
to ensure that TCC is appraised as soon as is practicable, of any event or the possibility of an
adverse effect of an economic, social or political nature.
17
6.
The Board’s Approach to the Governance of BVL
The Directors of Bay Venues are responsible for the stewardship and future well-being of the
organisation. Directors exercise leadership, enterprise, integrity and judgement in directing the
organisation so as to provide assurance of its continuing and lasting prosperity and effectiveness.
In discharging their responsibilities Directors have a duty to act in the best interest of Bay Venues as
a whole, irrespective of personal, professional, commercial or other interests, loyalties or
affiliations. Directors’ first duty and loyalty must be to the legal entity defined in the Bay Venues
Constitution consistent with 1.3.1 of the Companies Act.
More detailed obligations in relation to both the Directors obligations to Bay Venues and TCC’s
obligations to Bay Venues are outlined in the Enduring Statement of Expectations (ESE).
7.
Board Performance Reviews
A Board led bi-annual review will be undertaken in July/August 2022 by an independent entity, with
results reported to TCC. This review will be conducted within the Institute of Directors (IoD) “Better
Boards” programme providing comparative data to prior reviews by IoD.
The report will provide assessment on the Board’s performance within:
• Chair and Individual Director effectiveness.
• Board policies and procedures/effectiveness.
• Overall Board effectiveness, dynamics and connectivity to Stakeholder and
Community.
8.
Ratio of Consolidated Funds
In November 2014 TCC resolved that an appropriate starting debt equity ratio of 20:80 is appropriate
for Bay Venues, but the ratio may change up to 25:75. This ratio is calculated as: Debt to Equity Ratio
= Total Debt / Total Equity.
9.
Estimate of Commercial Value
The Board estimate that the commercial value of the TCC’s investment in Bay Venues is represented
by the net assets of Bay Venues. This value is calculated from total assets less liabilities.
10. Accounting Policies & Other Compliance
Financial statements will be prepared in accordance with generally accepted accounting practice
(GAAP), NZ International Financial Reporting Standards, Companies Act 1993, Local Government Act
2002 and Financial Reporting Act 1993.
11. Dividend Policy
Any retained surpluses over $250,000 (nett after depreciation and interest) must be approved by
Council unless otherwise agreed or prevented due to legal requirements.
Council may decide to reinvest part or all the surplus into Bay Venues if Bay Venues establishes a
compelling investment proposal and/or using such option to retire debt
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In determining funds that are ‘surplus’, Council will consider the operating result against budget
including the accounting surplus, the underlying cash surplus, and surpluses generated from particular
activities.
12. Procedures for Acquisition of Other interests
Pursuant to the Constitution, Bay Venues will only invest in the shares of a new or existing company
or organisation with the prior approval of TCC. Where the Board consider the size of the acquisition
warrants it, they will have due diligence carried out prior to any binding agreement being made.
13. Other Matters Agreed as Between the Directorate
and the Shareholders
Bay Venues shall enter, where necessary, such agreements with TCC giving effect to any restrictions,
requirements and obligations required by TCC.
Due to the impact of Covid over the past year Bay Venues revenue and profitability has been
significantly negatively impacted. While existing loan arrangements with TCC are sufficient to cover
this in the short term, Bay Venues wishes to signal to TCC a need to review the funding and/or loan
arrangements to ensure that the business can continue to operate.
14. Transactions between Related Parties
Transactions between TCC and Bay Venues will be conducted on a commercial basis (fair and
reasonable) and if appropriate contestable basis.
Other related party transactions will be on a commercial basis and in accordance with Bay Venues
procurement policy.
15. Compensation from Local Authority
Compensation for any services provided to the TCC has been agreed as per the revised Enduring
Statement of Expectations and the Letter of Expectations.
Council provide Bay Venues with an operating grant of $3.448m, which increases annually with
CPI. TCC’s operating grant to Bay Venues helps deliver:
•
Business related outputs, which apply across all facilities
•
Community related outputs which apply only to the facilities and activities that are
considered to have a community focus.
The outputs expected of Bay Venues are detailed in section 4 of the ESE.
19
Schedule 1 – Enduring Statement of Expectations
20
Schedule 2 – Annual Letter of Expectation FY23
21
