Business North Harbour Annual Report 2018 & Business Plan 2018-2021

ANNUAL REPORT 30 JUNE 2018

BUSINESS PLAN 1 JULY 2018–30 JUNE 2021

2

Annual Report 2018

BUSINESS NORTH HARBOUR

Chair and GM report On behalf of the Executive Committee Board and executive staff, it gives us great pleasure to report on the achievements, outcomes and progress made during the past twelve months.

Business North Harbour continues to focus on managing the impact of continuing growth in the business improvement district (BID) area and surrounds. This growth has resulted in significant diversification of industry sectors, as well as development of the last greenfield land in the area. Alongside this has come a massive increase in residential housing in nearby areas. Our ongoing programmes are designed to keep the North Harbour BID safe, accessible and thriving as it grows.

development and transport agencies. Formal consultation and submissions focused on the Auckland Plan 2050, Auckland Council’s Long-Term Plan 2018–28, Government Policy Statement 2018 and Regional Land Transport Programme 2018–28. Cost of business was a consistent theme throughout our submissions on the Auckland Council and UHLB budgets. Much has been said about the tightening of the local government purse and we expected to see the implications of this new fiscal policy across all council services in the Long-Term Plan 2018–28. It is with concern we report that the proposed regional fuel tax was not amended in favour of more direct user-pay models, and the additional costs to business through the imposition of mainly environmental targeted rates were not overturned.

We continue to lobby Auckland Council, central government and NZTA for a strategic Albany/North Harbour plan to ensure that a wider strategy is in place. Our ongoing constructive relationships with these stakeholders are particularly important as the impact of the Auckland Unitary Plan (currently operative in part) is felt.

One positive decision which we supported, was the resumption of Auckland Council’s Business Rates Differential strategy, effective 1 July 2018 – something we have advocated for since 2017. The reduction of the percentage of rates collected from the commercial sector will have a positive impact on cost of business for all our members. We will continue to hold Auckland Council accountable to their published reduction strategy.

To ensure that planning and investment decisions best reflect the needs of our commercial property owners, business owners and tenants, we made formal presentations to central and local government, including Upper Harbour Local Board (UHLB), and economic

Representation of our members interests continued in the context of the Auckland Unitary Plan. Business North Harbour supported significant retail appellants in the Environmental Court as they sought to overturn Auckland Council’s decision to remove the need for retail parking

BUSINESS NORTH HARBOUR

Annual Report 2018

3

Executive committee board

Peter Lamberton

Neil Tuffin

Katheryn Chivers

Robert Elcombe

Greg Frittelli

Lisa Hill

Janet Marshall

Emma Monsellier

Terry Ottow

Chair ASB (3 August 2018 – October 2018, representing Primacc)

​MiIT

PJCK Holdings

within the Metropolitan and Business Park zones (October 2017). While we were successful in this instance – retail parking requirements have been retained – we maintain a watching brief, especially for non-complying developments.

Thanks must be given to the Business North Harbour Executive Committee Board for their leadership and governance. All nine elected local business representatives give generously of their time and expertise to support the executive team and the wider North Harbour business district. Special mention should be made of Janet Marshall and Greg Frittelli, who will not seek re-election in 2018, having both served the maximum period of six years on the board.

We look forward to a continued partnership with our members and key stakeholders as we work together to ensure that North Harbour remains a desirable and prosperous location for business and investment in Auckland.

Peter Lamberton Chair

Janine Brinsdon General Manager

Deputy Chair Maat Group

I nsurance and Lending Group (ILG) (resigned as of May 2018)

Monsellier Law

McVeagh Fleming Lawyers (1 August 2018 – October 2018, representing Edge Mortgages)

Eclipse Recruitment

AMPM Marketing Ltd

Executive staff

Janine Brinsdon

Sarah de Zwart

Shirner Kenny

Dave Loader

Kate Thorpe

Tracey Begovic

General Manager

Crime Prevention Specialist

Relationship Manager and Transport Projects

Membership Support/ Administration

Communications and Marketing Manager

Project Support

4

Annual Report 2018

BUSINESS NORTH HARBOUR

The growth of North Harbour and why it is so important Regional growth Since 2000, the original North Harbour business district, loosely bounded by Albany Highway, Rosedale Road, Constellation Drive and Apollo Drive (Windsor Park and North Harbour East Statistics NZ Census Area Unit Definitions), has undergone phenomenal growth. The number of businesses located here has increased to 1920 (excluding self-employed business operators), and employee numbers have risen from 10,000 to over 26,000.

Unfortunately, due to the census data restrictions, we are unable to just report back on the growth of the commercial and industrial area adjacent to the Albany Mall/Albany Park and Ride. Based on the statistical information available, and our local knowledge of the area, we are confident in our claim of 30,000+ employees within the expanded North Harbour BID (NHBID) as of 2017. Add those self employed, and the number exceeds 35,000.

How does our growth compare?

When lobbying for infrastructure investment or representation in local government policy, it is vital for us to understand how we are tracking at an Auckland regional and local board level. North Harbour BID is captured within the Upper Harbour Local Board (UHLB) area, which is the narrowest geographic cluster available for the key economic data given here.

Auckland represents 38.2% of the national GDP, which grew at a rate of 3.6% in 2017.

Auckland’s GDP grew in 2017 by 5.2%.

UHLB’s GDP growth in 2017 was up 6.1%.

To prove this wasn’t a flash in the pan, UHLB’s GDP growth over the past 10 years has averaged at 4.4%, vs nationwide growth of just 2.0%.

We continue to represent our members to central and local government on issues which impact productivity, and this will remain a priority in future.

heights of 12.9% in 2004, to 2016’s growth of 5.7%. The only year employment growth dipped was in 2010 (-2.1%), echoed by a national drop of -2.4%.

Growth in the number of business units in the Upper Harbour area exceeds greater Auckland’s, with an average of 4.4% p.a.

UHLB statistics show a growth of business units every year since 2010, even when the greater Auckland region declined 1.5% in 2010. The message we are delivering to politicians is that infrastructure spend is essential for consistent growth.

The top 10 qualifications in demand for 2017 in the UHLB area were management and commerce, engineering and related technologies, society and culture, architecture and building, education, and health.

Industry sectors are represented below.

While industry is a relatively small part of the UHLB regional economy, wholesale trade made the largest contribution to overall growth in 2016 and 2017, with growth of 5.7% over the year. The next-largest contributor was construction, followed by financial and insurance services.

Employment UHLB employment growth in 2017 continued to outperform Auckland’s regional performance which demonstrates the importance of providing local employment options.

UHLB’s employment growth has been sustained over many years, from the heady

Employment Growth in 2017 4.4%

Commercial property returns Demand for commercial property is strong within the North Harbour BID area, and with business unit growth across UHLB outperforming Auckland (4.4% vs 3.4%) demand is likely to continue.

Metro Office Overall Vacancy Date

UHLB National Auckland

Productivity growth – economic activity generated by each employee – for UHLB is recorded at $99,235 in 2017.

North Harbour

Mairangi Bay

Sep-16

3.2%

4.3%

Mar-17

6.5%

8.1%

Sep-17

4.0%

2.6%

Mar-18

6.0%

3.1%

Metro Industrial Overall Vacancy Date

3.8%

2.4%

Self-employment remains an attractive option for 9,284 people, equal to 18.1% of the UHLB workforce, which is higher than the national average of 16.4%.

North Harbour

Mairangi Bay

Feb-16

1.4%

2.2%

Aug-16

1.1%

2.5%

Feb-17

1.0%

1.9%

Aug-17

1.3%

0.6%

Feb-18

1.9%

1.6%

Source: Colliers International Research Percentage figures are averages.

Funding partnerships GDB by Industry UHLB

16% 23.1% 10.3% 4.9% 5.9%

10.1%

6.9% 7.1%

8.1% 7.6%

Wholesale Trade Public Administration and Safety Professional, Scientific and Technical Services Manufacturing Unallocated Rental, Hiring and Real Estate Services Construction Retail Trade Education and Training All others

Gold sponsor and external grant funding growth in 2017–18 was consistent with additional non-budgeted funds received from Massey University to support the Business Capability Programme.

We received $20,000 budgeted support from Auckland Transport to assist in resourcing transport-related projects, and $5000 from Auckland Council for the extension of our Waste Minimisation Project.

UHLB provided $20,000 for a research project for the wider Albany region, to understand the needs of business and commercial property owners located in the Albany Village. Our thanks is extended to our sponsors and stakeholders for their financial support in 2017–18.

BUSINESS NORTH HARBOUR

74

Annual Report 2018

%

5

Business North Harbour training room utilised

54

increase in attendees at St John first aid courses

times by members, +100% from previous year

$4,549,724,000

CV as at 1 July 2018 for North Harbour BID

$5,101m

$60,000

Value of UHLB economy 2017

Gold Sponsorship 2017/18

459 visits by our crime prevention specialist, distributing 391information packs and completing 62 physical assessments of

HEL LO my name is

800

properties to avoid future burglaries and crimes.

attendees at our Business Lunch, Business Breakfast, Business After Five and special interest group events

Forward Together

Invest for Success Smart financial and legal strategies for growing businesses

Because a loyal and motivated team is essential for business growth

ON TARGET Meaningful marketing for measurable results

Bringing BIG DATA Down to Earth

AGM 2017 Full report and new Executive Board Pg 18

Asian Business Matters New feature Pg 27

Unit Titles Property legislation explained Pg 35

NOVEMBER 2017 — MEMBER NEWS AND INFORMATION FYI November 2017.indb 1

businessnh.org.nz

Money Psychology

On the Auckland Long-Term Plan Pg 7

Thinking beyond budget and cashflow Pg 18

Economic Views Exiting for the right reasons Pg 30

businessnh.org.nz

Have your say

Going the distance

Council proposals and budgets Pg 7

Tips for entering overseas markets Pg 22

MAY 2018 — MEMBER NEWS AND INFORMATION

Customer Focus The true value of the customer experience Pg 31

businessnh.org.nz

Data Compliance

What Matters Most to You?

Cross Border Transactions

Protecting your business and your customers Pg 25

Member Survey results Pg 26

Doing business in China (pt 1) Pg 31

AUGUST 2018 — MEMBER NEWS AND INFORMATION

copies of FYI magazine printed and distributed

businessnh.org.nz

3/11/17 12:02 PM

3950 reports received on security ‘hot sites’

Have your say

MARCH 2018 — MEMBER NEWS AND INFORMATION

17,600

2112

pallets recycled, reducing roadside waste and upcycling to companies who require additional pallets

6

BUSINESS NORTH HARBOUR

Annual Report 2018

CONNECT COMMUNICATE COLLABORATE

The Connect, Communicate, Collaborate strapline continued to reflect the key priorities of our members (as indicated in the 2017 and 2018 Business North Harbour Membership Surveys) and drive our core programmes.

Connect Our commitment for the past twelve months has been to provide members with access to speakers who would normally be unavailable to them as individuals.

We hosted eleven events in addition to our Business Capability Workshops and public meetings. Keynote speakers at our three Business Lunches/Breakfasts were Auckland Mayor Phil Goff, Vic Crone, CEO Callahan Innovation, and Hon. Phil Twyford, Minister for Transport, Housing and Urban Development. The political weighting of our recent speakers reflects the desire of members to understand and influence local and central government decisions, which can increase business (and personal) costs.

In last year’s Annual Report, we reported on the development of a comprehensive membership CRM. This project was completed within the 2018 financial year, and delivers a robust and streamlined membership database platform which will form the basis of our member communication and engagement over the coming years.

Our business directory is a valuable resource that provides a link for local businesses to connect and build supplier and customer relationships within a 7–10 kilometre radius. Our objective for the year was to have 70% of our members listed, but this has been exceeded, with 80% of our members’ details checked and published.

20% INCREASE

30% Communicate

INCREASE IN FEED IMPRESSIONS

The scale80% and diversity of ourIN membership base provides both INCREASE ENGAGEMENT challenges and opportunities. One key challenge is due to the BID structure, which gives automatic entitlement of membership for those owning a commercial property or operating a business within a geographic boundary. As managers of the North Harbour BID, the Business North Harbour team is continually finding new tenants and 3000% 345% property owners who were not aware of our business association, or INCREASE INCREASE the depth30% of services provided.

INCREASE

ORGANIC REACH

10%

10% 10%

PAID REACH

INCREASE IN FEED IMPRESSIONS INCREASE IN PROFILE VISITS

INCREASE

16%

INCREASE IN WEBSITE ENGAGEMENT

3.08min

PER WEBSITE VISIT

3.04min PREVIOUSLY

20%

INCREASE

30%

INCREASE IN FEED IMPRESSIONS

80%

INCREASE IN ENGAGEMENT

30%

345%

3000%

ORGANIC REACH

PAID REACH

INCREASE

INCREASE

INCREASE

Without an accurate membership database, effective and efficient communication becomes increasingly difficult. Therefore, significant resource was devoted to improving the accuracy our IMPRESSIONS membership 10% INCREASE IN of FEED data, and we now have a 90% certificate of accuracy rate. This 10% INCREASE IN PROFILE VISITS benchmark, along with increased capability and capacity across INCREASE digital platforms, will enable us to deliver to the KPIs set for 2018/19 and beyond (which we did not fully achieve in 2017/18).

10%

FYI magazine FYI is the only publication to be posted to all business owners within the North Harbour BID as well as the 2500+ commercial property owners, providing valuable content as well as a unique opportunity INCREASE IN to influence both groups of decision-makers. The magazine was WEBSITE ENGAGEMENT produced four times to budget and timeframes, and due to record levels of advertising sales, it was increased to 40 pages per issue.

3.08min PERthemes WEBSITE VISIT Overall included3.04min planning for business growth, building PREVIOUSLY a loyal and motivated team, investing for success, enhanced marketing, and economic performance reviews. In each issue, we also featured professional development articles from local and industry experts. During the past year, FYI content has expanded to include a property owners’ section, Asian business page, community page, governance section, social responsibility pages, and a Money Matters column which is targeted at the 35,000 local employees.

16%

Our e-newsletter, Your Business North Harbour, was delivered 64 times, with content covering general news, programme updates and events promotion. Following ongoing database audit, the current e-news subscriber level is 3893. Even though we missed our KPI target of a 35% opening rate, we reached a credible average of 25%.

The CRM audit will assist with e-newsletter engagement in 2018/19.

External media partners We continued our monthly column in the North Harbour Networker, and columns and advertising in Channel magazine were timed to align with major news and events (e.g. Auckland Economic Update, David Norman, March 2018 and Marketing Masterclass, June 2018).

Our C3 programme, advocacy and Business Expo were featured on stuff.co.nz and in the North Shore Times, and Business North Harbour was the subject of a cover story in NZ Business in June 2018. Media presence at our major events has increased.

BUSINESS NORTH HARBOUR

Annual Report 2018

7

Kirsten Taylor, Women in Business Event, June 2018

Laura Clarke, British High Commissioner to New Zealand, Business After Five, May 2018

Vic Crone, Business Lunch, April 2018

Bruce Cotterill, Business Breakfast, Feb 2018

Meet the Mayor, August 2017

Business After Five May 2018 guests

C3 expo took place August 2017 at Massey University

Selection of guests at our Business Networking events

8

Annual Report 2018

BUSINESS NORTH HARBOUR

Collaborate

C3 Expo

CEO Forum

C3

In last year’s Business Plan, we committed to the delivery of three forums aimed at business owner/managers responsible for $10m+ turnover, with more than 30 employees. These forums provided the chance to share and learn from peers also running companies of scale.

Accessing skilled employees and work-ready graduates remains a challenge for businesses seeking to grow their talent pool. Business North Harbour, with the support of UHLB, has developed the C3 online portal specifically to help businesses bridge that gap.

Presentations were made by Ivor Tiefenbrun from Linn Products on developing an international hi-fi brand and dealer network, Campbell Mitchell from Suncorp on ‘Risk to Reward’, and Peter Bailey from Kordia/Aura on cybersecurity.

Despite solid interest, we struggled to attract sufficient attendees to make this programme worthwhile. Therefore, the decision has been made not to host specific CEO Forums in 2018/19, but to revisit if demand is there during 2019/20.

We launched this platform at a physical expo in September 2017, attracting 22 business exhibitors and over 250 students. Successful introductions were made at the expo, with students engaged to assist businesses with their projects.

Currently there are 159 students registered looking for paid or unpaid projects, with 73

One Day Sale

businesses seeking assistance, through the creation of 41 projects.

Streamlined search criteria and increased collaboration with universities and international student organisations has delivered increased awareness of this service. Further enhancements will be made to the portal in 2018/19 to enable part-time non-student applicants to be considered.

Building capability In response to feedback in the 2017 member survey, we committed to delivering six specialist business capability workshops over the past twelve months, and a total of nine workshops were eventually held. The success of this programme has ensured its expansion in the 2018/19/20 period.

Bruce Cotterill’s ‘Best Leaders don’t Shout’ February 2018 workshop attracted over 100 people, and the workshop from Vesna Nixon, Kiwibank’s Campaign Marketing Manager, was oversubscribed, leading to a second marketing workshop in May 2018. Thank you to those members who have responded with additional topics of interest, to Massey University for their financial support, and to the speakers who generously gave of their time.

One Day Sale Business North Harbour’s One Day Sale took place on 25 November 2017, and was another phenomenally successful event for retailers and shoppers. We achieved a significant increase in advertising reach for the event, through advertising in Viva magazine (232,000 readers), and with print partners (218,528) and external digital partners (70,951). Through all combined media channels we targeted over 500,000 potential shoppers.

BUSINESS NORTH HARBOUR

Annual Report 2018

9

Keeping your business moving

Northern Corridor Improvement Project (NCIP) – Albany Bridge NCIP – Caribbean Drive Intersection

NCIP – McClymonts and Tirohanga Whanui

In the 2018 financial year we have progressed key strategic projects in support of continuing growth and investment in the North Harbour business district. As always, significant growth brings challenges to business efficiency, so we remain focused on leveraging positive outcomes from the increased scale and presence of the North Harbour region.

One key strategic project was representing our members’ interests in relation to the Northern Corridor Improvement Project, which commenced construction in January 2018. This $700 million project, funded through central and local government, will increase access to and from the North Harbour BID, and also provide separation from, and improved access to, State Highway 1 north and south.

As an extension of the Northern Corridor Improvement Project, Auckland Transport and NZTA are proposing an additional bus station located in Rosedale Road.

Understanding the views of property and business owners and their employees in the vicinity of the proposed station was a key project for us from November 2017 to February 2018. We spoke to 637

NCIP – Northern Busway Extension heading to Greville Rd

businesses to ensure they were aware of the proposal.

We engaged Traffic Design Group to peer-review Auckland Transport and NZTA’s modelling and scope. This external consultation will continue as more information is released. Consultation with NZTA and Auckland Transport will be critical in 2018–19 to ensure the vitality of this catchment area is protected, while increasing options for commuters.

Management of current assets Commuter education remains the backbone of our transport programme. More than 280 transport resource kits were distributed to business owners, and a further 764 commuters reached through travel expo presentations.

Public transport patronage growth was mainly limited to members using the Northern Expressway for meetings. We distributed 50 corporate HOP cards for that purpose, to reduce congestion in and around Constellation and Albany Park and Rides. The new North Shore public transport timetable, which takes effect in

September 2018, reflects our successful negotiation on improved service levels for 20 routes. Through our continued lobbying, Auckland Transport are adding an additional route to provide connectivity between Corinthian Drive and Albany Park and Ride.

Representation In addition to hosting Hon. Simon Bridges in September 2017, giving high transport users access to the then Minister of Transport, the views of our members were conveyed through formal submissions on key strategic plans such as the Public Transport Network Review North, as well as regional plans previously mentioned.

All print, digital and social media platforms were used to keep members and their staff informed about key projects such as the Northern Corridor Improvement Project, proposed Rosedale bus station, and proposed Constellation Drive clearway.

A full list of local advocacy is available at businessnh.org.nz/webpages/betterservices/#safetyandaccess and regional submissions at businessnh.org.nz/ webpages/our-purpose/#formalsubmission

10

Annual Report 2018

BUSINESS NORTH HARBOUR

Keeping your investment safe Business North Harbour’s nightly security patrol, conducted 365 days a year, remains a service highly valued by 39.66% of members.*

SECURE PLATES

Our commitment to funding crime prevention is paying a dividend, as being located within a low crime area is the reason why 65% of business owners* thought North Harbour was an attractive place to work, live and play.

In an attempt to remove temptation from vandals, we have distributed 5300 ‘Lock Your Vehicle, Remove Your Valuables’ messages to on-street parked cars over the past 12 months, to protect our members and their trade customers through increased awareness. This message has also been delivered via translated resources in Korean and Mandarin to key retail hotspots aimed especially at the nighttime economy.

We have also continued with our practice of instructing Armourguard to pay specific attention to ‘hot sites’ – premises that have been victims of crime or are at risk due to trending crime.

HELP HELPREDUCE REDUCE LANDFILL LANDFILL FOOD FOODWASTE WASTE COLLECTION COLLECTION AVAILABLE AVAILABLE Your Yourfirst first 66collections collections are areFREE FREE businessnh.org.nz/ businessnh.org.nz/ foodwastecollection foodwastecollection TERMS TERMS & CONDITIONS & CONDITIONS APPLY APPLY

REGISTER FOR OUR FOOD WASTE PROGRAMME

FREE BIN

Contact Business North Harbour to have your vehicle registration plates secured for free.

Plates are removed from vehicles for petrol drive-offs and more serious crimes. The inconvenience of finding your plates missing is a time consuming process to have them replaced.

PLUS FIRST 6 COLLECTIONS!

A FRIENDLY MESSAGE

For details about this free service email: crimeprevention@businessnh.org.nz

Trending crime Vehicle security was recognised as important to 31.9% of our members in the recent survey. Despite the fitting of 319 secure number plate screws, there has been a 33% increase in stolen number plates and petrol drive-offs over the past twelve months. There has also been an increase of 150% year on year for stolen cars. It is important to put these statistics into context, with the majority of vehicle insecurities impacting parked cars, caused by the shortfall of parking for the Albany Park and Ride. We will continue to put pressure on Auckland Transport to increase secure parking for these commuters.

REMOVE YOUR VALUABLES

We’re “beating the feet” to make your community safer

businessnh.org.nz/foodwastecollection

businessnh.org.nz 09 968 2222

BNH029 - Car Crime DLE 2016.indd 2-3

1/08/16 4:53 PM

Community safety To understand the impact of crime across the wider North Harbour area, we have hosted 28 meetings with stakeholders such as NZ Police, Auckland Council, UHLB, Westfield Mall Albany, NZTA and Northern Corridor Alliance members, St John, NZ Fire Service, Massey University and QBE Stadium. This sharing of information has resulted in more comprehensive preventative action across the wider community.

Shoplifting has increased over the past twelve months, but the majority of cases have involved health food shops, with manuka honey being the prize.

Social responsibility Two inorganic collections were completed, with 194m3 collected from 54 businesses.

Thanks to recycling and upcycling through community groups, only 6m3 ended up in landfill.

Do Doyou youhave have spare spareusable usable pallets? pallets?

We We will will introduce introduce you you to to other other members members who who are are desperate desperate forfor them, them, soso letlet usus know. know.

This This is is aa true true win–win! win–win!

ToTo sign sign upup head head to to businessnh.org.nz, businessnh.org.nz, click click onon ‘Safer ‘Safer Business’, Business’, scroll scroll to to ‘Pallets’ ‘Pallets’ and and complete complete thethe appropriate appropriate forms. forms.

For Formore moreinformation informationcontact contact david@businessnh.org.nz david@businessnh.org.nz ororcall call021 021560 560287 287

Over 42% of our members* consider landfill reduction important or very important. During our consultation and submission on the Draft Auckland Council Waste Minimisation Plan 2018, our members expressed interest in additional options to reduce landfill, so we developed a pilot for food waste collections (March 2018). Based on that success, we applied for $5000 grant funding from Auckland Council Waste Minimisation and Innovation Fund, which will be applied to expanding the programme in 2018/19.

Councillor Penny Hulse, Chair of the Environment and Community Committee, says it is wonderful to see an initiative where businesses are creating their own solutions. “Reducing Auckland’s waste is a massive task and there isn’t a single silver-bullet solution that will solve it.

That’s why Auckland Council is so supportive of innovative waste minimisation ideas that come from individuals, communities and businesses.”

Please remove all valuables from sight and ensure your vehicle is locked

차량 내부에 있는 귀중품이나 소지품을 보이지 않도록 치워 주시고, 문 잠김을 확인해 주시기 바랍니다. 贵重物品请收好并放在看 不到的地方。请确定您的 车子有锁好。

Hide your valuables posters.indd 1

Contact ContactDave Daveon on021 021560 560287 287

22/04/16 2:16 PM

BUSINESS NORTH HARBOUR

Business Plan 2018–2021

11

Business Plan 2018–2021 Business North Harbour’s purpose is to empower economic prosperity and growth, provide a voice for our community’s concerns, facilitate networking for local business development, and develop business capability through access to leading industry specialists.

The Board is extremely focused on ensuring this continues to be delivered. With that in mind, we measured the outcomes of events held over the last year to ensure they remain relevant and engaging. While it was very pleasing to find that this was the case for most programmes, we have also identified several areas for improvement, which we believe will provide more value for our members.

The Board is also looking ambitiously to the future.

With 37 events scheduled for 2018, it is going to be a fantastic year. We are lifting the threshold to ensure events are facilitated by experts in their field who provide tangible benefits, as we understand the cost of the time commitment for attendees away from their businesses. In essence, we aspire for these events to become world class.

We also wish to advocate strongly on your behalf.

Business North Harbour is actively engaged with decision-makers at all levels within Auckland Council, Upper Harbour Local Board (UHLB), Auckland Transport, ATEED and other organisations. However it is clear we are one of many voices, and our ability to influence real change is limited as a result. We want to challenge the status quo. To maximise our advocacy capability, we will be looking to establish a group that represents the economic and development interests of the wider North Shore (Devonport to Silverdale), culminating in the production of a ‘master plan’ resource regarding the growth and capacity of the region, specifically detailing how it impacts our members.

Surprisingly, our research tells us this does not yet exist.

Our aim is to change that.

The Board is committed to ensuring tangible outcomes in accordance with our purpose. We believe we are very well placed and will do so with executional excellence.

However our success is ultimately in the level of our engagement with you, our members, and we will be looking to ensure value is delivered at every opportunity.

12

Business Plan 2018–2021

BUSINESS NORTH HARBOUR

Direction One major change you will note when reviewing our 2018/19 budget is that we have monetised the cost of representation.

Our priorities will be guided by feedback from our members in the Business North Harbour Membership Survey 2018.

Local advocacy The majority of our advocacy programme has historically been two-fold – focusing firstly on decisions by local and central government that have a direct impact on your business and commercial property investment returns, and secondly on decisions that impact on the efficiency and productivity of the business district.

Examples include the reduction of congestion, maximising the positive outcomes of infrastructure investment, and mitigating rate increases.

This focus will continue during the extended life of this business plan, due to the construction phase of the Northern Corridor Improvement Project, the design phase of the proposed Rosedale bus station, implementation of the Public Transport North extended service, and consultation on the Auckland Council and UHLB budgets and plans for 2019/20.

Regional advocacy

The proposed Rosedale bus station

Despite the scale of the North Harbour business district, it is apparent that at regional or national policy level, decisions are being made over which we have limited influence. While our remit remains unchanged, in order for us to make a difference at a local level, we need to also focus on projects wider than the North Harbour BID area.

or very important. A key transport project for the 2018/19 period will be the introduction of the new public transport service for the North Shore. In October 2018, we will support AT in an extensive commuter education programme to maximise patronage of the increased network.

Good transport services and networks are important or very important to 87% of our members. We will create baseline data for key arterial routes, measuring traffic flow, queue times, vehicle occupancy levels and modes of travel to monitor the effectiveness of our advocacy.

Members supported the introduction of light rail to the North Shore (66%) and a second Waitemata Harbour crossing (47%). More cycles and walkways came in as a distant fourth priority for our advocacy programme, with 22% of members considering them very important.

An easy commute and good roading and infrastructure are both ranked as very important by 67% of our members, and good local amenities are considered important or very important to 88%.

In 2017, the population grew across the UHLB area by 4% to 65,300, at a rate faster than Auckland (2.6%) and national growth (2.1%). Investment is not keeping up with this population growth, and our members are reporting that it is impacting on their business profitability.

Improved public transport was highlighted by 68% of local employees as being important

Alongside the development of a North Shore ‘master plan’, we will actively consult on the supporting growth, including the delivery of a transport solutions plan in October– December 2018. Of particular interest is the infrastructure that will support growth in Silverdale, Wainui, Dairy Flat and the northwest region.

In the coming twelve months we will continue to work with the following stakeholders to foster more collaboration on key projects: NZTA, central government, Auckland Council, UHLB, Auckland Transport, Infrastructure New Zealand, Chamber of Commerce, Employers and Manufacturers Association, the British Consulate, and adjoining business improvement districts.

The key advocacy projects identified by members in the 2018 survey show that they value having a strong representative voice on a regional scale in order to effect benefits and progress at a local level.

Programme development Influence (Local and Central Government) Public meetings to enable understanding on official submissions

Improved local public transport networks

Light rail to the North Shore

Second Waitemata Harbour crossing More cycle and/or walkways

LEVEL OF IMPORTANCE (1 – LEAST 6 – MOST)

1

2

3

4

5

6

More than 42% of business owners and 55% of property owners stated in the survey that reducing landfill was important or very important to them, either for environmental or cost of operations reasons. Therefore, we will actively increase our waste minimisation programme services over the next 12–24 months. In September 2018, we will apply for significant multiyear grant funding from Auckland Council Waste Minimisation and Innovation Fund to expand the number of food waste bins we can deliver our members at no charge. If the application is successful, it will enable us to expedite the rate of services available. If unsuccessful, we will plan for service expansion in the 2019–20 budget.

BUSINESS NORTH HARBOUR

Connect The most popular of our showcase events is the Women in Business series, with 44.5% of members considering these events very important/important.

Due to the high level of participation, we will increase to four main events during the 2018–19 financial year.

Our Business Breakfasts and Luncheons series will remain at three keynote events, with the major change being the expectation of attendees increasing to 250 per event. Business After Fives will remain a core service, as these were considered very important/important by 43% of members.

Enthusiastic participation in the North Shore Commercial Property Group has led to an extension of this programme, with the two main events supported by four smaller workshops on specialist topics. The key topics of interest for this special interest group were building compliance, leasing and sales (legal), property development, and body corporate management. Many property owners also attend our core events and have access to the Business Capability Programme.

Communicate With our CRM system and data in place, our focus now moves to a review of our digital platforms and strategic communication platforms, including the website businessnh.org.nz.

Business Plan 2018–2021

Sponsorship returns Thank you to the ten local businesses and organisations who have committed to Gold Sponsorship for 2018/19. The $60,000 sponsorship fund will assist with the development and delivery of additional member services in the coming twelve months.

The decision to retain just 10 Gold Sponsors was made knowing there would be additional opportunities created for local businesses seeking to raise their profile through association with the Business Capability Programme. We thank Massey University for their $8000 grant, and look forward to working alongside them and other stakeholders such as ATEED in delivering this ambitious programme.

Cut-through of our communication message is critical. Over 60% of members state they want to receive monthly e-newsletters from us, so we will transition from weekly over the coming year. This will place more demands on our social and digital communication tools, and the printed and electronic version of FYI magazine. Amongst our business owners, Facebook is the preferred social media platform (48.25%), with LinkedIn a close second (38%). Property owners appear less interested in the social media platforms but are more interested in the FYI digital magazine version. Growth across all platforms will be critical with the planned reduction of e-newsletter frequency.

The communication platform review will be completed by December 2018, with the outcome being the delivery of efficient and highly targeted communication to our 4,500 members, and secondary reach to the 35,000+ employees throughout the district. An investment of $15,000 has been allocated for this project.

Building increased capability A significant change in the coming 12–24 months is our increased investment in building capability across our membership.

In the 2018–19 period, we have committed to hosting four keynote events, attracting quality speakers such as Google, IBM, and All Blacks manager Gilbert Enoka. To cement learning, the topics raised during these keynote events will be expanded on through supporting workshops. Our research supports this waterfall approach, and it is expected to increase impact, reach and ROI for the business district.

The choice of topics was guided by the 2018 membership survey, as well as feedback from the eight workshops held in 2017/18. The first four keynotes will be on technology/AI, digital marketing, leadership and culture, and health and safety. Further topics identified as important were business profitability, people management, and sales and effective networking. These will be covered through workshop-style events. Access to a skilled and educated workforce is important or very important to 84% of members, and we believe these workshops will contribute significantly to this objective.

Employee well-being ranked number one for 60% of our members, and we will incorporate the foundations of this topic in the Business Capability Programme for 2018–19. Personal safety was identified as very important for 70% of employees, and this will be added to the workshop programme from July 2019. Further research will be conducted to define what elements members wish us to focus on in future years.

Access to an advice line is a service 54% of our business owners want. Partnership discussions commenced in 2017/18, and that service will be delivered in 2018/19.

Event Category Partner Programme sponsor:

13

14

Business Plan 2018–2021

BUSINESS NORTH HARBOUR

Your voice Our advocacy focus in the medium term will be to work collaboratively with key stakeholders to hold central government and Auckland Council to account.

With central government elections due to take place in 2020, we recognize that unless key projects important to the North Shore are included in detailed budgets within the Auckland Transport Alignment Project 2018 and the Regional Land Transport Plan 2018–2028, it is unlikely that they will proceed due to pressure on local and central government funding.

Destination of choice Promoting North Harbour as a destination is important to both property owners (55%) and business owners (50%) in the BID. We will conduct further research into member expectations, and incorporate their feedback as we create destination marketing, PR and communications to increase awareness and pride of place.

Our business owner members want access to quality buildings to rent and buy (37% consider this very important, 28% important). We will continue to provide education to our property owners and managers via the North Shore Commercial Property Group, specialist property pages in FYI magazine, and communication portals, assisting them to deliver fit-for-purpose properties for lease.

KPIs for 2018/19

Negotiate regular references to North Harbour, and members, across regional and national media partners.

WOMEN IN BUSINESS:

600 attendees BUSINESS BREAKFAST/ LUNCHEONS:

750 attendees BUSINESS AFTER 5:

200 attendees

BUSINESS CAPABILITY PROGRAMME:

1200 participants across all workshops

Publish four issues of FYI magazine, with 4000+ copies per issue (total readership 72,000 p.a.).

Incorporate specialist content for commercial property owners and resources in Korean and Mandarin.

Review current external media partnerships to maximize advertising investment and reach.

Send a minimum of 12 issues of Your Business North Harbour e-newsletter and increase opening rates from 22 to 35%.

Ensure 80% of all businesses have a current, fully utilized directory profile on businessnh.org.nz.

Provide nighttime security patrols 365 days per year across the entire North Harbour BID.

Visit 1000 members face to face to advise them of our programmes and encourage their participation.

Maintain 90% accuracy of membership postal and physical database.

Advocate for improved access for localised commuter trips.

BUSINESS NORTH HARBOUR

Access to skills Nearly 65% of Business North Harbour members rate access to skills as important or very important.

We will continue assisting our members to grow their business capability through access to quality training workshops.

Continued growth of our C3 platform remains a priority, to increase the talent pool for local employers to draw from (including student and non-student candidates.)

We will develop relationships with Immigration NZ, and provide our employers with information on attracting skilled international staff. We will also work closely with organisations such as the German Chamber of Commerce, who have access to a significant number of students and interns seeking work experience in New Zealand.

Conduct inorganic collections

Business Plan 2018–2021

Organisational development As an organisation, we are not planning an expansion ballot for the coming twelve months.

However, we will be proactive in offering associate membership to businesses not currently supported by a formal BID structure, with a particular focus on those in the Hobsonville, Silverdale and Wairau areas. As well as increasing our membership subscription income, this strategy will provide those businesses with the opportunity to connect, communicate and collaborate with our extensive business networks.

As always, we will ensure that Business North Harbour Inc. continues to comply with the operational and governance requirements outlined in the Auckland Council Business Improvement District (BID) Policy 2016.

twice a year.

Develop food waste management pilot programme – trial and monitor 20 businesses with in-premise food waste collection bins between July and December 2018.

Install 450 secure number plate screws (74% of employees state this is important/very important).

Deliver 5000 ‘Lock Your Vehicle, Remove Your Valuables’ bilingual messages.

Increase active projects on the C3 portal by 30% and increase shortlisted candidates by 30%.

Host the seventh Business Expo in May 2019, attracting 100 exhibitors and 1,000 visitors, to budget.

Host and deliver the annual One Day Sale on 24 November 2018, to scale and budget.

Continue to provide a voice for business and investment with key local and central government decision-makers.

Mitigate the impact of the Northern Corridor Improvement Project redevelopment on business efficiency and access.

Increase LinkedIn followers by 100%, and increase feed impressions by 25% and engagement by 20%.

Increase Facebook followers by 100%, and increase both paid and organic reach by 25%.

Increase Twitter followers by 50%, and increase feed impressions by 100% and profile visits by 20%.

Use specific hashtags for all programmes and events.

Increase unique visitor numbers to businessnh.org.nz by 20%.

Increase overall engagement, with 25% more page views per visit across our website, and increase time spent on the site from 3.4 to 4.08 minutes per session.

15

16

FINANCIALS

BUSINESS NORTH HARBOUR

Financial Report FY 30 June 2018 Business North Harbour Incorporated Independent auditor’s report to the Members Report on the Financial statements Opinions

We have audited the performance report of Business North Harbour Incorporated (the entity), which comprises the the statement of financial position as at 30 June 2018, the entity information, statement of service performance, statement of financial performance and statement of cash flows for the year ended 30 June 2018, and the statement of accounting policies and other explanatory information.

In our opinion: a) the reported outcomes and outputs, and quantification of the outputs to the extent practicable, in the statement of service performance are suitable; b) the accompanying performance report gives a true and fair view of: i) the entity information for the year then ended; ii) the service performance for the year then ended; and iii) the financial position of Business North Harbour Incorporated as at 30 June 2018 and of its financial performance, and cash flows for the year then ended. in accordance with Public Benefit Entity Simple Format Reporting – Accrual (Not-For-Profit) issued by the New Zealand Accounting Standards Board.

We conducted our audit of the statement of financial performance, statement of financial position, statement of cash flows, statement of accounting policies and notes to the performance report in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)), and the audit of the entity information and statement of service performance in accordance with the International Standard on Assurance Engagements (New Zealand) ISAE (NZ) 3000 (Revised).

Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Performance Report section of our report. We are independent of the entity in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other than in our capacity as auditor we have no relationship with, or interests in, the entity.

Responsibilities of the Board for the Performance Report

The Board are responsible for: a) Identifying outcomes and outputs, and quantifying the outputs to the extent practicable, that are relevant, reliable, comparable and understandable, to report in the statement of service performance; b) the preparation of a performance report on behalf of the entity that gives a true and fair view, which comprises: – the entity information; – the statement of service performance; and – the statement of financial performance, statement of financial position, statement of cash flows, statement of accounting policies and notes to the performance report in accordance with Public Benefit Entity Simple Format Reporting – Accrual (Not-ForProfit) issued by the New Zealand Accounting Standards Board, and

c) for such internal control as the Board determine is necessary to enable the preparation of the performance report that is free from material misstatement, whether due to fraud or error.

In preparing the performance report, the Board are responsible on behalf of the entity for assessing the entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board either intend to liquidate the entity or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the performance report is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) and ISAE (NZ) 3000 (Revised) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this performance report.

As part of an audit in accordance with ISAs (NZ) and ISAE (NZ) 3000 (Revised), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the performance report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of the use of the going concern basis of accounting by the Board and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the performance report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.

However, future events or conditions may cause the entity to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the performance report, including the disclosures, and whether the

Contact details

Physical Address 12 Parkway Drive, Albany, Auckland 0632 Officers Peter Lamberton, Chairman (appointed 19 October 2017) Neil Tuffin, Deputy Chair (appointed 19 October 2017) Emma Monsellier (appointed 19 October 2017) Lisa Hill (appointed 19 October 2017) Katheryn Chivers (appointed 19 October 2017) Janet Marshall (appointed 19 October 2017) Robert Elcombe (appointed 19 October 2017) Terry Ottow (appointed 19 October 2017) Greg Frittelli (resigned 10 May 2018) Terry Zouch (resigned 19 October 2017) Chris Cooke (resigned 19 October 2017) Peter Jollands (resigned 19 October 2017) Janine Brindson (General Manager) Auditors William Buck Level 4, 21 Queen Street Auckland CBD 1010 New Zealand Postal Address P O Box 303126 North Harbour 0751 Phone 09 968 2222 Email admin@businessnh.org.nz Website businessnh.org.nz

performance report represents the underlying transactions and events in a manner that achieves fair presentation.

• Perform procedures to obtain evidence about and evaluate whether the reported outcomes and outputs, and quantification of the outputs to the extent practicable, are relevant, reliable, comparable and understandable.

We communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Restriction on Distribution and Use

This report is made solely to the entity’s members, as a body. Our audit work has been undertaken so that we might state to the entity’s members those matters which we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the entity and the entity’s members, as a body, for our audit work, for this report or for the opinions we have formed.

William Buck Audit (NZ) Limited Auckland 24 September 2018

BUSINESS NORTH HARBOUR

FINANCIALS

17

Financial Statements Statement of Movements in Equity

Statement of Financial Performance For the Year Ended 30th June 2018

2018 Actual ($)

2018 Budget ($)

2017 Actual ($)

657,734

657,734

626,412

Subscription from Members

15,785

26,119

16,057

Grants Received

23,860

20,000

61,086

Function & Events Income

38,145

37,950

92,949

Note

Revenue

Targeted Rate

Sponsorship

68,646

Advertising Income

38,501

Interest Revenue

1,051

Other Revenue

100

Total Revenue

Less Expenses

Employee Related Costs

Costs re Member Programmes & Services Lease and Rental Expenses Other Expenses Total Expenses

66,500 41,560 550

-

83,217 40,276 488

850,413

920,485

2

355,977

356,962

372,746

3

331,533

371,595

335,027

4

46,184

45,000

41,889

56,693

59,715

2017 ($)

Opening Balance

201,841

273,132

Profit for the Period

40,137

85,312

Total Increases

40,137

(71,291)

241,978

201,841

Increases

Prior Year Adjustment

- (156,603)

Total Equity

61,643

Statement of Financial Position As at 30th June 2018 Current Assets

Bank Accounts and Cash

790,388

833,272

811,305

Trade Receivables

53,433

17,141

109,180

Interest Accrual

Net Surplus Before Depreciation

Note

2018 ($)

2017 ($)

6

145,661

316,422

-

14,245

Credit Notes Receivable

Depreciation

7,716

25,000

14,968

Amortisation of intangibles

8,900

-

8,900

(3,320)

-

-

RWT Paid

Term Deposits

7

Intangible Assets

9

Net Depreciation Adjustment

13,296

25,000

23,868

Property, Plant and Equipment

Surplus/(Deficit) for the Year

40,137

(7,859)

85,312

Total Non-Current Assets

8

Current Liabilities

Business Credit Cards Trade Payables

Receipts In Advance

Statement of Cash Flows For the Year Ended 30th June 2018

Cash Flows from Operating Activities Cash was received from:

NHBID Targeted Rate Levy

Fees, Subscriptions and Other Receipts from Members

Sponsorship, Donations, Fundraising and Other Similar Receipts Receipts from Providing Goods or Services

Interest, Dividends and Other Investment Receipts Net GST Refund Received Cash was applied to:

Payments to Suppliers and Employers

Total Cash Flows from Operating Activities

2018 ($)

2017 ($)

Holiday Pay Accrued

Total Current Liabilities Total Liabilities

665,956

634,243

71,191

79,107

18,825

13,576

145,399

155,553

422

(3,012)

256

486

Net Assets Equity

Retained Earnings Net Assets

181,471

409,851

265,000

38,819 3,733

307,552

1,771

10

-

5,375

489,023

Total Assets

73,809

10,522 60

Total Current Assets Non-Current Assets

24,434 795

Goods and Services Tax

Less Depreciation Adjustments

Loss (Gain) on Disposal of Property, Plant and Equipment

2018 ($)

Equity

-

843,821

5

For the Year Ended 30th June 2018

45,262

-

-

36,515 12,633 49,148

458,999 2,039

68,365

187,456

173,558

247,045

257,158

241,978

201,841

12,555

247,045

241,978 241,978

13,196

257,158

201,841 201,841

(803,030) (781,590) 99,019

98,363

3,730

-

Cash Flows from Investing Activities Cash was received from:

Receipts from Sale of Property, Plant and Equipment Receipts from Sale of Investments Cash was applied to:

Payments to Acquire Property, Plant and Equipment

55,000 (8,510)

(2,320)

(269,780)

(2,320)

(170,761)

96,043

316,422

220,379

(170,761)

96,043

Payments to Purchase Investments

(320,000)

Net Increase/ (Decrease) in Cash

Total Cash Flows from Investing Activities

Cash Balances

Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Net change in cash for period

-

145,661

-

The accompanying notes form part of the Performance Report and should be read in conjunction with the reports contained herein.

For and on behalf of the Association:

316,422 Peter Lamberton (Chairperson)

Date: 24 September 2018

18

FINANCIALS

BUSINESS NORTH HARBOUR

Notes to the Financial Statements 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Business North Harbour Incorporated is a non-profit organisation registered under the Incorporated Societies Act 1908.

Basis of Preparation The entity has elected to apply PBE SFR-A (NFP) Public Benefit Entity Simple Format Reporting - Accrual (Not-For-Profit) on the basis that it does not have public accountability and has total annual expenses of equal to or less than $2,000,000. All transactions in the Performance Report are reported using the accrual basis of accounting. The Performance Report is prepared under the assumption that the entity will continue to operate in the foreseeable future.

The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on an historical cost basis have been used, with the exception of certain items for which specific accounting policies have been identified. a) Changes in Accounting Policies There have been no changes in accounting policies.

All policies have been applied on bases consistent with those used in previous years. b) Property, Plant & Equipment The entity has the following classes of Property, Plant & Equipment: • Office Equipment • Furniture & Fittings • Plant & Equipment All property, plant & equipment is stated at cost less depreciation.

Depreciation of the assets has been calculated at the maximum rates permitted by the Income Tax Act 2007. c) Intangibles Intangible Assets are amortised by the straight-line method over the period during which any benefit is expected, not exceeding 10 years. d) Goods and Services Tax These financial statements have been prepared on a GST exclusive basis, with the exception of accounts receivable and accounts payable which are shown inclusive of GST. e) Income Tax No provision for Income Tax has been made as there is no current or deferred tax payable. The Association is exempt from Tax pursuant to section CW40(1) of the Income Tax Act 2007. f) Receivables Receivables are stated at their estimated realisable value. Bad debts are written off in the year in which they are identified.

There were no bad debts written off during the year (2017: NIL). g) Revenue Recognition Grants and donations are recognised as income when they become receivable, unless the Association has a liability to repay the grant if the requirements of the grant are not fulfilled. A liability is recognised to the extent that any such conditions are unfulfilled at the end of the reporting period.

Interest income is recognised on a cash received basis.

All other revenue is reported when it is earned.

2. EMPLOYMENT RELATED COSTS BID Management Costs BID Administration Costs BID Marketing Costs Transport Programme Costs Crime Prevention Programme Costs ACC Levy Kiwisaver - Employer Contribution Staff Training Recruitment Expenses

2018 ($) 130,770 43,100 66,688

2017 ($) 131,902 47,478 65,603

65,937

71,570

36,117

36,654

947

711

9,133

9,209

3,285 355,977

2,815 6,804 372,746

3. COSTS RELATED TO PROVIDING MEMBER PROGRAMMES AND SERVICES Business and Economic Development Costs Crime Prevention Scheme Costs Transport Management Programme Costs

2018 ($)

2017 ($)

224,658

248,866

72,242

72,222

34,632

13,939

331,533

335,027

4. LEASE AND RENTAL EXPENSES Rent, Rates & Body Corp Fees

2018 ($)

2017 ($)

46,184

41,889

46,184

41,889

2018 ($) 11,581 4,595 1,287 7,323 1,869 1,663 1,056 5,658 2,796 800 940 193 4 5,918 -

2017 ($) 8,872 36 5,882 950 1,605 6,970 2,115 1,689 1,461 6,476 2,948 682 989 70 7,137 21

2,294

2,253

6,213 2,507 56,693

9,042 2,045 61,643

5. OTHER EXPENSES Accountancy Fees Advertising & Promotion Audit Fees Bad Debts Bank Charges Board Honorariums Board Support Cleaning & Laundry General Expenses Insurance Interest IT Expenses Legal Expenses Meeting Costs Postage & Courier Printing & Stationery Repairs & Replacements Subscriptions, Licenses & Registrations Telephone, Tolls & Internet Travel - National & Mileage

6. BANK ACCOUNTS AND CASH BNZ - Cheque Account BNZ - On Call Account BNH ACC Targeted Rate Account ASB BNH Cheque Account ASB NHBID Targeted Rate Account ASB BNH Savings -50 Account Westfield Vouchers Held in Stock

2018 ($) -

2017 ($) 184,260 5

-

19

63,072

54,172

82,409

53,011

9

24,852

170

103

145,661

316,422

2018 ($) 55,000 110,000 100,000 265,000

2017 ($) -

7. INVESTMENTS Term Deposit - 30 days Term Deposit - 60 days Term Deposit - 6 months

8. PROPERTY, PLANT & EQUIPMENT Office Furniture & Equipment

At Cost Less Accumulated Depreciation

Current Year Depreciation Plant & Equipment At Cost Less Accumulated Depreciation Current Year Depreciation Total Property, Plant & Equipment Total Depreciation for the Year

2018 ($)

2017 ($)

38,454

38,977

(19,077)

(21,954)

19,377 3,584

17,023 3,217

118,458

147,529

(99,016) (128,037) 19,442 4,132

19,492 11,751

38,819

36,515

7,716

14,968

12. RELATED PARTIES

During the year there have been material transactions between Business North Harbour Incorporated and related parties, as follows: Related Party Greg Frittelli Lisa Hill Kate Chivers

Relationship Board member of BNH and shareholder of ILG Insurance Brokers Board member of BNH and Director of Eclipse Recruitment Board member of BNH and employee of McVeagh Fleming

Emma Monsellier

Board member of BNH and principal of Monsellier Law

Chris Cooke

Board member of BNH and Director of Speedy Signs

Robert Elcombe Terry Ottow Neil Tuffin

Board member of BNH and Director of MiIT Ltd Board member of BNH and Director of AMPM Board Member of BNH and Director of Maat Group

Type of Transaction

2018 ($)

2017 ($)

Insurance Expense

(5,658)

(4,928)

Sponsorship Income Recruitment Expense Sponsorship Income Legal Advice Advertising Income Legal Advice

8,000 (0) 6,000 (1,092) 1,174 (2,150)

12,000 (1,460) 6,000 (1,049) 500 (1,350)

(2,751)

Not a board member this year

Signage Expense Internet Services and Computer Purchases Sponsorship Income Marketing Material Advertising Income

Not a board member this year

6,000 ( 2,012) 2,900

(2,744)

Not a board member this year

450

At balance date the following balances were included in trade debtors and trade creditors being receivable from (owing to) related parties: Related Party

Type of Balance Payable for Computers Robert Elcombe, MiIT Ltd Receivable for Sponsorship and Advertising Terry Ottow, AMPM Receivable for Sponsorship Chris Cooke, Speedy Signs Payable for Signage Lisa Hill, Eclipse Recruitment Receivable for Sponsorship Neil Tuffin, Maat Group Receivable for Advertising Emma Monsellier, Monsellier Law Receivable for Training Fees

2018 ($) (2,739) 0 1,150 (1,294) 767 1,714 417

2017 ($) (3,848) 4,675 575 1,150 517 978

All related party transactions are on normal commercial terms. No related party balances have been written off.

BUSINESS NORTH HARBOUR

9. INTANGIBLES Intangible Assets at Cost Accumulated Amortisation

2018 ($) 24,000 (20,267) 3,733

2017 ($) 24,000 (11,367) 12,633

Current Year Amortisation

8,900

8,900

10. RECEIPTS IN ADVANCE Advertising Income in Advance Audit Fee Accrual Funding Received in Advance Rent Incentive Accrual Sponsorship in Advance Subscriptions in Advance

2018 ($)

2017 ($)

-

300

4,900

4,900

172,656

164,434

8,000 1,900 187,456

2,024 1,900 173,558

11. COMMITMENTS

Commitments to lease or rent assets Lease of Property - Current Lease of Property - NonCurrent Lease of Assets - Current Lease of Assets - NonCurrent

2018 ($) 41,560

2017 ($) 28,333

76,193

28,333

1,752

1,752

2,044

3,796

Commitment to purchase property, plant and equipment There are no commitments to purchase property, plant and equipment.

13. CONTINGENT LIABILITIES

There are no contingent liabilities or guarantees as at 30 June 2018 (last year – nil).

15. ABILITY TO CONTINUE OPERATING The entity will continue to operate for the foreseeable future.

19

Budget 2018/19 and Draft 2019/20 In line with the Auckland Council Business Improvement District (BID) Policy 2016, and supported by our continued commitment to financial and operational transparency, we have produced a three-year Business Plan. This is supported by a draft budget through to 30 June 2020.

Detailed below is the finalised 2018/19 budget, which supports the outcomes and KPIs detailed in the Business Plan on pages 11–15.

Variances to 2018/19 Budget

At the AGM 2017, members approved the targeted rate levy of $690,621 which forms the basis of the operational budget for the current financial year.

The key variances to the draft budget presented last year reflect the decision taken by the executive and Executive Committee to significantly increase focus on the Business Capability Programme. The expenditure of $180,423 for this programme will be offset by sponsorship and stakeholder support to the extent of $100,000.

The other key variance is how we are monetising our advocacy programme. These programme costs of delivery have historically been accounted for in management overheads and the transport programme. As presented in our Business Plan, we will take a dual focus in the coming 36 months, which will retain the local interests but increase the knowledge of key advocacy projects across the North Shore. While the NHBID is substantial, surrounding growth is impacting our members’ productivity, so an understanding at a strategic level is an investment which we believe will pay dividends.

The Executive Committee and management remain committed to providing cost neutrality between the targeted rate levy and the programmes and services available to Business North Harbour members.

Our Targeted Rate collection method will remain unchanged, with a fixed fee of $150 + GST applied to each commercially rated property within the NHBID, plus a rate in the dollar to be multiplied by the capital value of the rating unit (including GST).

The rate per $ for the 2018/19 year is 0.00008812.

The targeted rate per property on average has decreased by 3.1% against the past twelve months.

Draft 2019/20

Member approval will be sought at the AGM 2018 for the collection of $690.621 as the Targeted Rate levy for that 2019/20 financial year, and the overall draft budget as presented. The Executive Committee is confident that Business North Harbour can deliver their business plan objectives without the need for an increase to the Targeted Rate Levy for this time period. Instead we will focus on increased revenue from sponsorship and external stakeholders – those who will gain a direct economic benefit from their activities and relationships.

As with all budget forecasts, the economic environment and programme development may require changes to the operational component, but it is with confidence that we present these budgets for your review and approval.

Budget Position Proposed 2018/19 FINAL 2018/19 Budget as Published ($) Budget ($)

14. EVENTS AFTER THE BALANCE DATE

There were no events that have occurred after the balance date that would have a material impact on the Performance Report (last year – nil).

FINANCIALS

Key Income Streams NHBID Targeted Rate

Associate Membership

Advertising and Promotion Gold Sponsorship

External Programme Grants

Events and Economic Development Business Capability Programme (previously included in Events and ED)

Interest

Total Estimated Income

Proposed 2019/20 ($)

690,621

690,621

690,621

48,500

48,500

54,000

27,000 60,000 35,000

23,117 60,000 30,000

139,650

125,500

-

100,000

600

720

24,000 78,000 95,000 67,500

120,000 750

1,001,371

1,078,458

1,129,871

Crime Prevention

110,000

97,010

95,000

Member Communications

125,000

118,286

120,000

55,000

180,423

195,000

Programme Expenditure Transport

Events and Economic Development Business Capability Programme

Advocacy (previously reported under BID Projects and Personnel)

Special Interest Groups & NHBID Programme Projects Total Estimated Programme Costs

100,000 205,000 -

25,000

25,580

144,390 216,500

38,760

35,000 85,000

220,000 95,000

620,000

820,949

845,000

Personnel

220,000

170,250

175,000

Premises

48,000

49,680

50,000

Operating Expenditure Administration and Accounting IT/Computer

Depreciation

Board Honorariums

Total Estimated OPEX

Total Estimated Programme and OPEX Estimated Surplus/Deficit

47,000 20,000 25,000 7,500

367,500

35,656 12,800 15,000 7,500

290,886

36,800 13,000 12,000 7,500

294,300

987,500

1,111,835

1,139,300

13,871

-33,377

-9,429

businessnh.org.nz Phone 09 968 2222 12 Parkway Drive, North Harbour, Auckland 0632 POÂ Box 303126, North Harbour 0751

@BusinessNorthHarbour

Business North Harbour

@BizNorthHarbour