Agenda of Arts, Culture and Heritage Committee

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Arts, Culture and Heritage Committee

MEETING DATE: 16 April 2018

TITLE: Cultural CCOs Six Month Reports to December 2017 and Draft Statements of Intent 2018-2021

DATE: 26 March 2018

AUTHOR/S: Rebecca Hofmann, Community Funding Coordinator, Libraries and Community Services

Matt Duxfield, Management Accountant, City Corporate

RECOMMENDATION(S) TO Council

1. That Council receive the six month reports to December 2017 submitted by Globe Theatre Trust Board, Te Manawa Museums Trust, Caccia Birch Trust Board and Regent Theatre Trust (the cultural CCOs).

2. That Council receive the draft Statements of Intent 2018–2021 submitted by the cultural CCOs.

3. That Council note any items to be addressed by the cultural CCOs in drafting their final Statements of Intent.

4. That Council refer to the 10 Year Plan an additional grant to remunerate Regent Theatre Trust Board, Caccia Birch Trust Board and Globe Theatre Trust Board for trustee meeting fees, and that in the final Statements of Intent this grant is to be shown as:

a. adjusted for inflation; or

b. not adjusted for inflation.

1. ISSUE

1.1 The Council is required by the Local Government Act 2002 (LGA) to regularly undertake performance monitoring of its CCOs. Council is required to evaluate the contribution of each CCO to the Council’s objectives for the CCO; the desired results set out in the Statement of Intent (SOI); and the overall aims and outcomes of the Council based on the six month reports.

1.2 Council must also agree to a CCO’s new SOI each year. See Appendix 1 for further information on SOIs, including the development process, purpose and required content.

1.3 Representatives of each cultural CCO are in attendance to present their six month reports and draft SOIs to Council.

2. BACKGROUND

2.1 A CCO is an organisation in which Council has the right to appoint at least fifty per cent of the trustees. Council has four cultural CCOs which were set up to independently manage Council-owned cultural facilities for a mixture of commercial and community purposes: Globe Theatre Trust Board, Te Manawa Museums Trust, Caccia Birch Trust Board and Regent Theatre Trust. These organisations are each managed by a Board of Trustees made up of committed volunteers.

2.2 Caccia Birch Trust Board, while currently exempted as a CCO pursuant to s 7(3) of the LGA to reduce audit costs, is still required to report to Council in the same way as a CCO.

3. Trust Board Meeting Grant

3.1 On 24 October 2017 the Council resolved:

“That Council approve the Regent Theatre Trust Board, Caccia Birch Trust Board and Globe Theatre Trust Board to pay a per meeting fee of $85.00 for all of their trustees commencing 1 July 2018.”

3.2 Regent Theatre Trust Board, Caccia Birch Trust Board and Globe Theatre Trust Board have budgeted for the meeting cost in their draft SOIs, and ask that Council approve funding to cover this cost. If approved, Officers need further direction as to whether this grant is to be inflation adjusted for 2019/20 onwards.

3.3 The maximum per annum amount for the trustee fees for 2018/19 is outlined below:

Organisation	Number of Trustees	Maximum Amount p/a
Regent Theatre Trust Board	6	$6,120
Caccia Birch Trust Board	6	$6,120
Globe Theatre Trust Board	5	$5,100
Total		$17,340

4. PERFORMANCE FOR THE SIX MONTHS TO DECEMBER 2017 AND DRAFT STATEMENTS OF INTENT

4.1 Officers have summarised the six month reports and draft SOIs received from each cultural CCO in the following pages. The full documents are appended to this memo.

4.2 This memo is in a different format from previous years, and includes more contextual information to assist Elected Members. The narrative summaries are now accompanied by performance target dashboards; one for each six month report, and one for each draft SOI.

(a) The six month report dashboard provides a comparison of the CCO’s performance against their targets, and against the same time last year. Data from past six month reports has been used to identify a three-year trend in performance against these targets.

(b) The draft SOI dashboard provides a summary of the future targets set for the period covered by the SOI. It also compares these targets to both their current target and the actual result from 2016/17.

4.3 Similarly, the draft SOI financial summary now shows the figures for the two past years alongside the three years covered by the SOI. While in the past some of the six month financial information was estimated, the CCOs have been asked to provide actual figures.

4.4 Officers will continue to work with CCOs to communicate Council’s new strategic direction, and to help the CCOs align their vision. The Chair of each CCO was formally notified in January that a letter of expectation process is to be introduced later this year. Letters of expectation ensure Council’s expectations and priorities are clearly communicated to each CCO, giving them guidance in respect of the matters to be covered by their next SOI. Officers will also provide guidance and support to ensure CCO reporting aligns with best practice (based on guidance from the Office of the Auditor-General) and the requirements of the LGA.

5. Globe Theatre Trust Board

5.1 Six Month Report to 31 December 2017

GLOBE: SUMMARY OF ACTIVITIES – 6 MONTH
During the reporting period Globe Theatre Trust Board hosted a variety of events, including some as a result of a new drive to increase the diversity of its hirers. An improved online presence and regular newsletters ensure that patrons are kept informed, and the new café provides a way to attract foot traffic to the complex. This reporting period has seen the Board working to understand its operations in relation to the needs of its community. A stakeholder consultation period has provided the basis for the Board’s new strategic plan. Work has been done to survey the satisfaction and needs of the community. In future, the Globe will be able to use this information to clearly track and build on its objectives.

GLOBE: SUMMARY OF ACTIVITIES – 6 MONTH

During the reporting period Globe Theatre Trust Board hosted a variety of events, including some as a result of a new drive to increase the diversity of its hirers. An improved online presence and regular newsletters ensure that patrons are kept informed, and the new café provides a way to attract foot traffic to the complex.

This reporting period has seen the Board working to understand its operations in relation to the needs of its community. A stakeholder consultation period has provided the basis for the Board’s new strategic plan. Work has been done to survey the satisfaction and needs of the community. In future, the Globe will be able to use this information to clearly track and build on its objectives.

GLOBE: PERFORMANCE TARGET DASHBOARD – 6 MONTH
The 3 Year Trend = à Steady ä Improving æ Declining
Measure		YTD 31 Dec 2016	YTD 31 Dec 2017	3 Year Trend	Comments on trend
Community usage	Actual Target	76% 60%	79% 60%	æ	High figure in YTD 2015 results in downwards trend
Usage nights	Actual Target	175 125	190 125	ä	Steady increase year-on-year
Performances	Actual Target	72 82	78 82	æ	High figure in YTD 2015 results in downwards trend
Events co-promoted by Trust	Actual Target	3 2 (full year)	5 2 (full year)	ä	Steady increase year-on-year
Hirers	Actual Target	37 None set	46 None set	–	Improved result compared to YTD 2016 (no 2015 data)
New hirers	Actual Target	17 None set	23 None set	–	As above

GLOBE: FINANCIALS – 6 MONTH

	YEAR TO DATE			Annual
Summary Financials ($000)	Actual	Budget	Var.	Budget

Financial Performance
Total Revenue	94	138	(44)	276
Total Expenses	96	101	5	202
Net Surplus (Deficit)	(2)	37	(39)	74

Financial Position
Total Assets	290			403
Total Liabilities	36			15
Equity	254			388

Cash Flows
Total Net Cash Flows	7			1
Opening Cash	32			25
Closing Cash	39			25

· 6 month budget calculated based on 50% of full year budget.

· 6 month actual is $2k deficit.

· Revenue from donations/fundraising was $26k against a full year budget of $129k, which included approximately $120k for capital improvements. Expenditure attached to this has been spent proportionally.

· Cash has increased by $7k in the 6 months.

· Working capital covers 6% of the annualised operating expenditure.

GLOBE: ISSUES & OUTLOOK – 6 MONTH
· The Board notes that increased usage or occupancy does not always translate into increased hire revenue (see Figure 3 on page 9 of the report). The balance between gathering revenue and ensuring accessibility is an issue for all cultural CCOs. · Progress has been made to address accessibility and rigging issues in Globe 1. However issues with temperature control and the rehearsal room have been identified – see page 6 of the report. · Café services are soon to be expanded, including offering ticket sales outside of box office hours. · The Globe is pleased to have secured four Chamber Music New Zealand bookings for 2018, and to welcome a resident dance school as a result of a new MOU.

GLOBE: ISSUES & OUTLOOK – 6 MONTH

· The Board notes that increased usage or occupancy does not always translate into increased hire revenue (see Figure 3 on page 9 of the report). The balance between gathering revenue and ensuring accessibility is an issue for all cultural CCOs.

· Progress has been made to address accessibility and rigging issues in Globe 1. However issues with temperature control and the rehearsal room have been identified – see page 6 of the report.

· Café services are soon to be expanded, including offering ticket sales outside of box office hours.

· The Globe is pleased to have secured four Chamber Music New Zealand bookings for 2018, and to welcome a resident dance school as a result of a new MOU.

5.2 Draft Statement of Intent 2018–2021

GLOBE: SUMMARY – DRAFT SOI

The Globe Theatre Trust Board’s draft SOI 2018–2021 is the first since the implementation of its new strategic plan. The draft SOI identifies alignment with Council’s vision as one of its core strategic priorities. A range of performance measures are included, which are focussed on the satisfaction of the community. Specific targets are to be set based on benchmarking work currently being undertaken.

The Board expresses concern about its ability to fund its responsibilities whilst maintaining affordability for the community, and intends to make a submission to increase its operating budget. If this submission is unsuccessful, Council can require the Globe to modify the SOI.

GLOBE: PERFORMANCE TARGET DASHBOARD – DRAFT SOI
Measure	Actual 2016/17	Target 2017/18	SOI 2018/19	SOI 2019/20	SOI 2020/21
Usage nights	273	250	TBC	TBC	TBC
Performances	138	165	TBC	TBC	TBC
Satisfaction (hirers)	New	New	≥97%	TBC	TBC
Satisfaction (audiences)	New	New	≥78%	TBC	TBC
Events co-promoted by the Globe	8^{^[1]}	2	5	10	12
Proportion of MOU-driven usage	New	New	60%	65%	70%
Depreciation costs funded	New	New	33%	67%	75%
Donation and fundraising revenue^{^[2]}	New	$10,000	$10,000	$13,000	$15,000

GLOBE: FINANCIALS – DRAFT SOI

	Actual	Forecast	Statement of Intent
Summary Financials ($000)	2016/17	2017/18	2018/19	2019/20	2020/21

Financial Performance
Total Revenue	176	251	258	269	281
Total Expenses	177	208	216	219	222
Net Surplus (Deficit)	(2)	43	42	50	59

Financial Position
Total Assets	295	318	361	412	471
Total Liabilities	39	20	20	21	21
Equity	256	299	341	391	450

Cash Flows
Net change in cash flows	14	(25)	16	11	17
Opening Cash	18	32	7	23	34
Closing Cash	32	7	23	34	51

· The PNCC current operating grant of $78,266 in 2018/19 matches what has been budgeted under the long term plan 2018-28.

· In addition, Globe have 2 additional grant requests:

o $30,000 to fund depreciation and to ensure maintenance and renewals are progressed in a timely fashion. This will form a submission to the long term plan.

o $5,100 to cover Trust meeting fees, which are also included as an additional cost.

· Including these additional grants:

o Financial performance shows the net surpluses in each year of between $42k and $59k.

o Net cash flow would increase each year by an average of $15k

o Working capital grows from covering 12% of operating expenses in 2018/19 to 26% in 2020/21.

6. Te Manawa Museums Trust

6.1 Six Month Report to 31 December 2017

TE MANAWA: SUMMARY OF ACTIVITIES – 6 MONTH
In the six months to 31 December 2017 Te Manawa presented a range of events and exhibitions, resulting in a strong performance against its visitor targets. The Trust is tracking well for the majority of its other targets, as summarised in the dashboard. Four events were co-created with community partners during the reporting period. The Art Gallery’s milestone 40^th anniversary was commemorated by the Golden Dreams exhibition, one of a number of exhibitions hosted over the period. Te Manawa continues to build relationships in the community. During the reporting period the Trust identified partnership opportunities with several international museums and a local trust; and signed a partnership document with Rangitāne.

TE MANAWA: SUMMARY OF ACTIVITIES – 6 MONTH

In the six months to 31 December 2017 Te Manawa presented a range of events and exhibitions, resulting in a strong performance against its visitor targets. The Trust is tracking well for the majority of its other targets, as summarised in the dashboard.

Four events were co-created with community partners during the reporting period. The Art Gallery’s milestone 40^th anniversary was commemorated by the Golden Dreams exhibition, one of a number of exhibitions hosted over the period.

Te Manawa continues to build relationships in the community. During the reporting period the Trust identified partnership opportunities with several international museums and a local trust; and signed a partnership document with Rangitāne.

TE MANAWA: PERFORMANCE TARGET DASHBOARD – 6 MONTH
The 3 Year Trend = à Steady ä Improving æ Declining
Measure		YTD 31 Dec 2016	YTD 31 Dec 2017	3 Year Trend	Comments on trend
Visits to TM	Actual Target	127,214 85,000	105,536 86,000	à	High YTD 2016 result (due to Dinos) balanced by 2017
Visits to exhibitions at other venues	Actual Target	47,628 50,000	82,532 50,000	æ	High YTD 2015 result results in downwards trend
Online reach	Actual Target	319,527 79,000	291,794 80,000	ä	Upward trend compared to YTD 2015
Third-party revenue	Actual Target	$553,000 $280,000	$276,300 $294,200	à	High YTD 2016 result (due to Dinos) balanced by 2017
Visitor satisfaction (TM surveys)	Actual Target	96% >96%	98% >96%	ä	Steady increase year-on-year
Activity participation	Actual Target	No data 10,000	12,614 11,000	–	Improved result compared to YTD 2015 (no 2016 data)

TE MANAWA: FINANCIALS – 6 MONTH

	YEAR TO DATE			Annual
Summary Financials ($000)	Actual	Budget	Var.	Budget

Financial Performance
Total Revenue	1,808	1,817	(9)	3,623
Total Expenses	1,999	1,754	(245)	3,651
Net Surplus (Deficit)*	(191)	63	(254)	(28)
*Excludes collection movements
Financial Position
Total Assets	16,628	16,903	(275)	16,844
Total Liabilities	399	420	21	428
Equity	16,229	16,483	(254)	16,416

Cash Flows
Total Net Cash Flows	(204)	219	(424)	184
Opening Cash	591	660	(69)	660
Closing Cash	387	879	(492)	845

· 6 month actual is $191k deficit compared to a budgeted $63k surplus. This is mainly due to operating expenses being $245k higher than budget.

· Cash has decreased by $204k in the 6 months, compared to a budgeted increase of $219k. There is a capital grant of $175k expected in the second half for capital expenditure already incurred, which leads to forecasted cash reserves improving before year-end.

· Working capital covers 14% of the annualised operating expenses.

TE MANAWA: ISSUES & OUTLOOK – 6 MONTH

· Reaching LEOTC (Learning Experiences Outside the Classroom) targets continues to be a challenge. From 1 January 2018 this programme is covered by new contract arrangements, including a lower visit target.

· Shaping the long-term future of Te Manawa is a high priority for the Trust, and some planned activities have been deferred for consideration as part of TM2025.

· The Trust is looking forward to touring the Topp Twins exhibition, with four venues confirmed.

· A UCOL student has been engaged to evaluate volunteer management systems, with the aim of improving volunteer involvement in Te Manawa.

· Education is an on-going focus: a series of after-school science and technology programmes is scheduled to being in February 2018; a Learning Reference Group has been established; and development of Te Manawa’s learning hub concept continues.

6.2 Draft Statement of Intent 2018–2021

TE MANAWA: SUMMARY – DRAFT SOI
Te Manawa Museums Trust’s draft SOI illustrates a shift in focus and intentions, with an expanded vison and new mission and key priorities. The majority of the Trust’s Key Strategic Objectives (KSOs) cover Te Manawa’s ‘business as usual’ workstream. Each KSO is illustrated by performance targets, but there is less detail this year about the internal activities Te Manawa plans to undertake in order to achieve the KSOs. The Trust’s second workstream – ‘rapid evolution’ – is the focus of KSO 4. This objective outlines the Trust’s goal of providing a foundation for the future of the organisation. The Trust observes that this will require flexibility, as it aims to establish the basis for the long-term vision and service levels of Te Manawa. The Trust acknowledges the need to engage with and inform stakeholders on progress. Te Manawa shows net deficits for each year of the SOI period, which it states will help to provide better service delivery to support its vision.

TE MANAWA: SUMMARY – DRAFT SOI

Te Manawa Museums Trust’s draft SOI illustrates a shift in focus and intentions, with an expanded vison and new mission and key priorities. The majority of the Trust’s Key Strategic Objectives (KSOs) cover Te Manawa’s ‘business as usual’ workstream. Each KSO is illustrated by performance targets, but there is less detail this year about the internal activities Te Manawa plans to undertake in order to achieve the KSOs.

The Trust’s second workstream – ‘rapid evolution’ – is the focus of KSO 4. This objective outlines the Trust’s goal of providing a foundation for the future of the organisation. The Trust observes that this will require flexibility, as it aims to establish the basis for the long-term vision and service levels of Te Manawa. The Trust acknowledges the need to engage with and inform stakeholders on progress. Te Manawa shows net deficits for each year of the SOI period, which it states will help to provide better service delivery to support its vision.

TE MANAWA: PERFORMANCE TARGET DASHBOARD – DRAFT SOI
Measure	Actual 2016/17	Target 2017/18	SOI 2018/19	SOI 2019/20	SOI 2020/21
Visits to TM	175,853	172,000	178,000	180,000	185,000
Visits to exhibitions at other venues	75,240	100,000	100,000	120,000	150,000
Online reach (including e-visits)	581,129	160,000	200,000	250,000	300,000
Visits to Te Ahikaea activities	New	New	5,000	10,000	20,000
Third-party revenue	$972,000	$577,000	$577,000	$800,000	$800,000
Visitor satisfaction (TM surveys)	96.3%	>96%	>93%	>94%	>95%
Deliver on ‘out-of-the-box’ thinking	New	New	2	3	3

TE MANAWA: FINANCIALS – DRAFT SOI

	Actual	Forecast	Statement of Intent
Summary Financials ($000)	2016/17	2017/18	2018/19	2019/20	2020/21

Financial Performance
Total Revenue	3,975	3,704	3,933	3,928	4,000
Total Expenses	4,034	3,768	4,112	4,046	4,118
Net Surplus (Deficit)*	(58)	(64)	(179)	(118)	(118)
*Excludes collection movements
Financial Position
Total Assets	16,787	16,783	16,720	16,628	16,535
Total Liabilities	417	430	433	433	433
Equity	16,370	16,353	16,288	16,195	16,102

Cash Flows
Net change in cash flows	(216)	(152)	(159)	(28)	(68)
Opening Cash	808	591	439	280	252
Closing Cash	591	439	280	252	184

· The PNCC current operating grant of $3,131,026 in 2018/19 matches what has been budgeted under the long term plan 2018-28.

· Financial performance shows the net deficits in each year, with $179k in 2018/19 and $118k in 2019/20 and 2020/21.

· Cash is budgeted to decrease by $255k over the 3 years. This is due to the Rapid Evolution project.

· Current assets are forecast to move from $987k as at 30 June 2018 to $351k at 30 June 2021.

· Working capital coverage of operating expenses is forecast to move from 7% in 2018/19 to a negative position in 2020/21, meaning that current liabilities are budgeted to exceed current assets in 2020/21.

7. Caccia Birch Trust Board

7.1 Six Month Report to 31 December 2017

CACCIA BIRCH: SUMMARY OF ACTIVITIES – 6 MONTH
During the six months to 31 December 2017 Caccia Birch Trust Board continued to encourage access to the property by participating in the Heritage Open Days and Local History Week, and by hosting 10 free open afternoons. The Trust Board continues to manage the maintenance of the house and grounds to ensure that this heritage property is preserved for coming generations. The house is in excellent condition and the Board continues to plan for improvements, such as a new recycling facility and landscaping.

CACCIA BIRCH: SUMMARY OF ACTIVITIES – 6 MONTH

During the six months to 31 December 2017 Caccia Birch Trust Board continued to encourage access to the property by participating in the Heritage Open Days and Local History Week, and by hosting 10 free open afternoons.

The Trust Board continues to manage the maintenance of the house and grounds to ensure that this heritage property is preserved for coming generations. The house is in excellent condition and the Board continues to plan for improvements, such as a new recycling facility and landscaping.

CACCIA BIRCH: PERFORMANCE TARGET DASHBOARD – 6 MONTH
The 3 Year Trend = à Steady ä Improving æ Declining
Measure		YTD 31 Dec 2016	YTD 31 Dec 2017	3 Year Trend	Comments on trend
Open afternoons	Actual Target	12 10 (full year)	10 10 (full year)	ä	Steady upwards trend
Average occupancy	Actual Target	64% None set	73% None set	ä	Steady upwards trend
Usage days	Actual Target	118 None set	138 None set	ä	Slight upwards trend
Proportion of usage: Training and seminars	Actual Target	35% None set	44% None set	ä	Slight upwards trend
Proportion of usage: Meetings	Actual Target	37% None set	33% None set	ä	Slight upwards trend
Proportion of usage: Community discounted	Actual Target	10% None set	6% None set	æ	Strong downwards trend
Proportion of usage: Private functions and weddings	Actual Target	12% None set	9% None set	æ	Slight downwards trend
Proportion of usage: Events, tours and open days	Actual Target	6% None set	8% None set	ä	Steady upwards trend

CACCIA BIRCH: FINANCIALS – 6 MONTH

	YEAR TO DATE			Annual
Summary Financials ($000)	Actual	Budget	Var.	Budget

Financial Performance
Total Revenue	139	143	(3)	286
Total Expenses	147	158	11	319
Net Surplus (Deficit)	(8)	(15)	7	(33)

Financial Position
Total Assets	232			174
Total Liabilities	95			26
Equity	137			148

Cash Flows
Total Net Cash Flows	3			16
Opening Cash	20			28
Closing Cash	22			44

· Cash flow is estimated.

· 6 month actual is $8k deficit compared to a budgeted $15k deficit.

· Cash has increased by $3k in the 6 months.

· Working capital covers 3% of the annualised costs.

CACCIA BIRCH: ISSUES & OUTLOOK – 6 MONTH
· The Trust cites marketing budget constraints and increased competition from other venues as limiting factors in increasing user numbers. · The Trust looks forward to hosting further publically accessible events this year, including the Bridal Fair. · The Trust hopes to attract greater visitor participation by developing the grounds and Coach House Archive. Funding has been secured to continue work on the archive project.

CACCIA BIRCH: ISSUES & OUTLOOK – 6 MONTH

· The Trust cites marketing budget constraints and increased competition from other venues as limiting factors in increasing user numbers.

· The Trust looks forward to hosting further publically accessible events this year, including the Bridal Fair.

· The Trust hopes to attract greater visitor participation by developing the grounds and Coach House Archive. Funding has been secured to continue work on the archive project.

7.2 Draft Statement of Intent 2018–2021

CACCIA BIRCH: SUMMARY – DRAFT SOI

The Caccia Birch Trust Board has set out its intended actions to work towards its vision of preserving Caccia Birch House for the community, and increasing its value as an attraction. New performance targets have been set for customer satisfaction, usage days, and usage by new community groups.

The Trust would like to progress several projects, including the Coach House Archive, a recycling and waste facility, and continued work on the grounds. The Trust also plans to explore the feasibility of a café operating from the Coach House.

CACCIA BIRCH: PERFORMANCE TARGET DASHBOARD – DRAFT SOI
Measure	2016/17 Actual	2017/18 Target	2018/19 Target	2019/20 Target	2020/21 Target
Open afternoons	20	10	10	12	14
Tour groups	New	New	6	7	8
Usage days	230	n/a	250	255	260
Satisfaction (users)	New	New	90%	92%	94%
New community group users	New	New	1	2	3

CACCIA BIRCH: FINANCIALS – DRAFT SOI

	Actual	Budget	Statement of Intent
Summary Financials ($000)	2016/17	2017/18	2018/19	2019/20	2020/21

Financial Performance
Total Revenue	266	286	293	299	305
Total Expenses	287	319	313	318	320
Net Surplus (Deficit)	(21)	(33)	(20)	(19)	(15)

Financial Position
Total Assets	182	174	148	130	115
Total Liabilities	37	26	42	42	43
Equity	145	148	106	88	73

Cash Flows
Net change in cash flows	(2)	16	10	(1)	1
Opening Cash	22	28	21	31	30
Closing Cash	20	44	31	30	31

· Forecasted opening cash for 2018/19 is lower than budgeted closing cash for 2017/18.

· The PNCC current operating grant of $98,775 in 2018/19 matches what has been budgeted under the long term plan 2018-28.

· In addition, Caccia Birch have requested an additional grant of $6,120 to cover Trust meeting fees, which are also included as an additional cost.

· Including this additional grant:

o Financial performance shows the net deficits in each year of between $15k and $20k

o Net cash flow would increase in year 1 by $10k, and remain relatively stable in the subsequent 2 years.

o The equity and assets of Caccia Birch are reducing each year by approximately the value of depreciation.

o Working capital coverage of operating expenses remains stable at between 5% and 6%.

8. Regent Theatre Trust

8.1 Six Month Report to 31 December 2017

REGENT: SUMMARY OF ACTIVITIES – 6 MONTH
The Regent Theatre has hosted a range user groups over this reporting period. Community use sits at 78%, and the Board is committed to maintaining accessibility and providing support for community hirers. This year marks a milestone for the Trust – in May 2018 it will be 20 years since the refurbishment and reopening of the Regent on Broadway. The Friends of the Regent continue to be a valued part of theatre operations, funding the replacement of the Regent’s dimmer system. The redevelopment of the Regent’s customer database is underway, working to correct on-going issues. This forms part of the Regent’s audience development strategy.

REGENT: SUMMARY OF ACTIVITIES – 6 MONTH

The Regent Theatre has hosted a range user groups over this reporting period. Community use sits at 78%, and the Board is committed to maintaining accessibility and providing support for community hirers. This year marks a milestone for the Trust – in May 2018 it will be 20 years since the refurbishment and reopening of the Regent on Broadway.

The Friends of the Regent continue to be a valued part of theatre operations, funding the replacement of the Regent’s dimmer system. The redevelopment of the Regent’s customer database is underway, working to correct on-going issues. This forms part of the Regent’s audience development strategy.

REGENT: PERFORMANCE TARGET DASHBOARD – 6 MONTH
The 3 Year Trend = à Steady ä Improving æ Declining
Measure		YTD 31 Dec 2016	YTD 31 Dec 2017	3 Year Trend	Comments on trend
Total days use (auditorium)	Actual Target	120 80	94 None set	æ	Slight downwards trend after peak in YTD 2016
Total attendances	Actual Target	59,670 50,000	53,999 None set	æ	As above
Total days hire: commercial	Actual Target	26 None set	21 None set	ä	Lower YTD 2015 result = slight upwards trend
Total days hire: community	Actual Target	94 None set	73 None set	æ	Slight downwards trend after peak in YTD 2016
Events in Regency and Rehearsal Rooms	Actual Target	99 67	– None set	–	Need YTD 2017 data to identify trend
Events hosted with youth organisation	Actual Target	New measure	1 1 (full year)	–	New measure

REGENT: FINANCIALS – 6 MONTH

	YEAR TO DATE			Annual
Summary Financials ($000)	Actual	Budget	Var.	Budget

Financial Performance
Total Revenue	421	434	(13)	826
Total Expenses	426	461	36	905
Net Surplus (Deficit)*	(4)	(27)	23	(79)
*Excludes donated assets and Regent on Broadway Promotions
Financial Position
Total Assets	726
Total Liabilities	147
Equity	579

Cash Flows
Total Net Cash Flows	20
Opening Cash	104
Closing Cash	124

· 6 month actual financial performance is $4k deficit compared to a budgeted $27k deficit.

· Cash has increased by $20k in the 6 months.

· Working capital covers 38% of the annualised costs.

REGENT: ISSUES & OUTLOOK – 6 MONTH
· The absence of an Abbey Musical Theatre production during the reporting period has led to a reduction in patronage and live nights. However, an agreement has been reached with Abbey which will ensure one production per year for the next five years. · A series of events has been planned for the Regent’s 20th Anniversary celebrations. · The Regent is developing a mid-winter series of events, to be expanded further in 2019. · Forward bookings for the remainder of this reporting year are reported to be positive.

REGENT: ISSUES & OUTLOOK – 6 MONTH

· The absence of an Abbey Musical Theatre production during the reporting period has led to a reduction in patronage and live nights. However, an agreement has been reached with Abbey which will ensure one production per year for the next five years.

· A series of events has been planned for the Regent’s 20th Anniversary celebrations.

· The Regent is developing a mid-winter series of events, to be expanded further in 2019.

· Forward bookings for the remainder of this reporting year are reported to be positive.

8.2 Draft Statement of Intent 2018–2021

REGENT: SUMMARY – DRAFT SOI

The Regent’s draft SOI includes an updated vision, mission and values from the Trust’s new strategic plan. New projects include re-establishing theatre tours, a focus on training and development for volunteers, and increasing the accessibility of the theatre for diverse community groups.

The Trust will continue to use Regent on Broadway Promotions to strategically procure key productions for the City. Strategic priority 4 indicates the Trust will focus on research and data collection as a tool for audience development, informing a planned review of the marketing strategy and related plans.

REGENT: PERFORMANCE TARGET DASHBOARD – DRAFT SOI
Measure	Actual 2016/17	Target 2017/18	SOI 2018/19	SOI 2019/20	SOI 2020/21
Significant events assisted	New	New	1	2	2
Culturally diverse events assisted	New	New	2	3	4
Iconic community events assisted	New	New	2	2	2
School events assisted	13	8	10	11	11
Total attendances	100,576	n/a	100,000	100,000	100,000
Total live nights	204	n/a	160	160	160
Income from commercial use	66.91%	n/a	≥55%	≥55%	≥55%
Attendances (community events)	60.86%	n/a	≥60%	≥60%	≥60%
Community satisfaction	97%	n/a	95%	95%	95%
Events in foyer and function rooms	223^{^[3]}	n/a	230	240	250

REGENT: FINANCIALS – DRAFT SOI

	Actual	Forecast	Statement of Intent
Summary Financials ($000)	2016/17	2017/18	2018/19	2019/20	2020/21

Financial Performance
Total Revenue	823	826	845	855	862
Total Expenses	823	905	916	931	949
Net Surplus (Deficit)	(1)	(79)	(71)	(76)	(87)

Financial Position
Total Assets	693		734	727	782
Total Liabilities	123		120	123	127
Equity	570		614	604	655

Cash Flows
Net change in cash flows	(53)			0	0
Opening Cash	157			150	150
Closing Cash	104		150	150	150

· Forecasted 17/18 balance sheet and cash flows not provided. Cash flow for the SOI is based on balance sheet forecast of cash accounts.

· The PNCC current operating grant of $214,919 in 2018/19 matches what has been budgeted under the long term plan 2018-28. Their SOI states it will increase by 4.1% in 2019/20 and by 1.4% in 2020/21.

· In addition, Regent Theatre has requested an additional grant of $6,120 to cover Trust meeting fees, which are also included as an additional cost.

· Including this additional grant:

o Financial performance shows a net deficit each year of between $71k and $87k.

o Net cash flow is expected to remain stable, with $10k surpluses being placed into term deposits.

o Working capital coverage of operating expenses remains stable at between 32% and 33% each year.

9. NEXT STEPS

9.1 Officers will communicate any Council comments on the draft SOI to the Boards of the cultural CCOs by 1 May 2018.

9.2 The cultural CCOs will submit their final SOIs by 30 June 2018, and these will be presented to the Committee at its meeting on 10 September 2018.

9.3 The CCOs will submit their annual reports by 30 September 2018, and these will be presented to the Committee at its meeting on 12 November 2018.

10. Compliance and administration

Does the Committee have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual <Enter clause>	No
Are the decisions significant?	No
If they are significant do they affect land or a body of water?	No
Can this decision only be made through a 10 Year Plan?	No
Does this decision require consultation through the Special Consultative procedure?	No
Is there funding in the current Annual Plan for these actions?	Yes
Are the recommendations inconsistent with any of Council’s policies or plans?	No

Attachments

1.	Appendix 1 - Statements of Intent ⇩
2.	The Globe - Six Month Report to 31 December 2017 ⇩
3.	The Globe - Draft Statement of Intent 2018-2021 ⇩
4.	Te Manawa - Six Month Report to 31 December 2017 ⇩
5.	Te Manawa - Six Month Report to 31 December 2017 - Financials ⇩
6.	Te Manawa - Draft Statement of Intent 2018-2021 ⇩
7.	Te Manawa - Draft Statement of Intent 2018-2021 - Financials ⇩
8.	Caccia Birch - Six Month Report to 31 December 2017 ⇩
9.	Caccia Birch - Draft Statement of Intent 2018-2021 ⇩
10.	The Regent - Six Month Report to 31 December 2017 ⇩
11.	The Regent - Draft Statement of Intent 2018-2021 ⇩

Rebecca Hofmann

Community Funding Coordinator

Matt Duxfield

Management Accountant

[3] Result is for Regency and Rehearsal Rooms only, not foyer

Rachel Bowen (Chairperson)
Jim Jefferies (Deputy Chairperson)
Grant Smith (The Mayor)
Susan Baty	Vaughan Dennison
Brent Barrett	Karen Naylor
Adrian Broad	Bruno Petrenas
Gabrielle Bundy-Cooke	Tangi Utikere

5-18	Tourist Signs - Caccia Birch Memorandum, dated 6 December 2017 from the Senior Transportation Engineer, Glenn Connelly. The Mayor (Grant Smith) left the meeting at 11.45am. In discussion it was agreed that they did not want to see a delay for the signage for Caccia Birch House.
	The COMMITTEE RECOMMENDS Moved Rachel Bowen, seconded Lorna Johnson. 1. That Council Officers investigate and provide comprehensive review of information signs and facilities to be sign posted and report back to the Arts, Culture and Heritage Committee in June 2018.
	Moved Leonie Hapeta, seconded Chairperson Rachel Bowen. 2. That modest direction signs be installed to indicate the presence of Caccia Birch House.
	Clause 5-18 above was carried 15 votes to 0, the voting being as follows: For: Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.