regional facilities auckland (rfa) · exceptionally wet or hot weather continues to have an adverse...

Regional Facilities Auckland (RFA)Background Regional Facilities Auckland (RFA) presents a vibrant and exciting environment to those that live in and visit our city. The experiences we create are rich in culture and heritage, the natural environment, arts, sport and live performances. We achieve this through our creative programmes, events, collections and venues.

Our operational brands are the Auckland Art Gallery, AucklandConventions, Auckland Live, Auckland Stadiums, New ZealandMaritime Museum and Auckland Zoo, which are supported by afacilities management and corporate services function.

RFA is the steward of over $1.3b of assets and operates acommercial business model. External revenue earned fromcommercial activities (including admission charges, venue hire,event related services, food and beverage, commissions,exclusivity fees, sponsorship and property rental) amounts to 71%of our income, with the balance coming from Auckland Counciloperational grants.

How operating expenditure is funded

Comments The key challenges for RFA are:• Auckland’s growth: Increasing population and diversity coupled with demands on infrastructure and funding pressures.• Aging infrastructure: Increasing cost of operation, compromised customer experiences and poor asset and network performance.• Operating in a highly volatile and cyclical commercial market• Increased competition: In recent times Australia has invested in the arts and cultural sector making it a more financially attractive

destination for musicals and concerts, rather than Auckland. There has also been increased competition for conventions and events,locally, nationally and internationally.

Our strategic priorities are:• Enhance customer experiences: We have an ongoing programme to improve the customer journey across the RFA business and

maximise revenue.• Optimise sector networks: Continue to work with sector partners to create value for money and greater opportunities for our customers.• Invest in our venues and services: Invest in the development of Auckland Zoo, Auckland Stadiums and the Aotea Centre so that these

venues are fit for purpose and form a suitable platform for the future social and cultural advancement of our city.

ServicesN

et o

pex

FY19

Auckland Art Gallery 8,909

Auckland Zoo 4,760

Maritime Museum 2,184

Venues and events (301)RFA corporate support & facilities management 20,085

Auckland Council Budget Book 20183rd Edition

Rates: 36%

Other including fees and charges: 64%

$ 000 FY17

Actual

FY18

Actual

FY19

Budget

FY20

Budget

FY21

BudgetOperating revenue 55,277 59,370 62,539 64,414 67,057 Operating expenditure 89,014 93,244 98,176 98,531 101,655 Net operating expenditure 33,737 33,874 35,637 34,117 34,598 Capital revenue 4,734 - - - -Capital expenditure 34,500 45,395 121,608 42,219 33,843 Net capital expenditure 29,766 45,395 121,608 42,219 33,843

4%Operating expenditure 2018/2019

RFA

Group

4%

Capital expenditure 2018/2019

RFA

Group

220

Regional Facilities Auckland (RFA)

Auckland Council Budget Book 20183rd Edition

Key areas of capex spend ($m) FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 10-year total

Auckland Zoo 43 19 16 16 12 17 11 12 4 6 155

Aotea Centre 43 0 2 2 4 24 15 3 0 0 94

Auckland Stadiums 20 7 6 3 3 4 7 6 3 4 63

Auckland Art Gallery 3 2 5 3 3 1 2 1 1 2 23

Civic Theatre 1 8 0 0 0 1 1 0 2 0 13

Maritime Museum 0 0 0 0 0 0 0 0 0 0 4

Total RFA capex 122 42 34 29 27 53 44 30 18 18 417

Prior LTP comparison

10-yeartotal

LTP 2015-2025 $375m

Revised 10-year budget 2019-2028 $417m

Capital investment trend

0m

20m

40m

60m

80m

100m

120m

140m

Budget

221

Regional Facilities Auckland Auckland Art Gallery

Auckland Council Budget Book 2018 3rd Edition

Auckland Art Gallery

What is delivered? Auckland Art Gallery Toi o Tāmaki holds New Zealand’s most extensive collection of national and international art. Through the presentation of exhibitions, public programmes and thought leadership, the Gallery aims to be a catalyst for creative practice and ideas. Auckland Art Gallery: • Manages the world’s largest New Zealand art collection including curating, research, conservation, external

loans and an exhibition programme• Delivers public access, education and outreach programmes• Supplements its funding by attracting revenue through retail, sponsorship, grants, philanthropy, admissions to

paid exhibitions, café services, events and other commercial services that complement the visitor experience.

How is it measured? Actual

2016/17 Actual

2017/18 Target

2018/19 Target

2019-28 (pa)

The number of people who experience Regional Facilities Auckland's arts, environment and sports venues and events

3.2m 4.1m 3.5m 3.7 - 4m

The net promoter score for Regional Facilities Auckland's audiences and participants

16 37 18 19-20

The percentage of RFA operating expenses funded through non-rates revenues

68% 61% 65% 65%

The number of RFA programmes contributing to the visibility and presence of Māori in Auckland, Tāmaki Makaurau.

10 27 14 16-20

How much does it cost? Income and expenditure:

$000 FY17 FY18 FY19 FY20 FY21 Actual Actual Budget Budget Budget

Fees and user charges 2,129 2,525 3,279 3,345 3,412

Other revenue 1,716 3,562 1,254 1,279 1,305

Total operating revenue 3,845 6,087 4,533 4,624 4,717 Staff costs 7,241 6,947 8,158 8,292 8,457

Grants, contributions and sponsorship - - - - -

Outsourced works and services 675 49 48 49 50

Consultancy and professional services 141 21 56 57 58

Repairs and maintenance 10 11 9 10 10

Other expenditure 3,740 4,828 5,171 5,274 5,383

Total operating expenditure 11,807 11,856 13,442 13,682 13,958

Capital revenue 4,734 - - - - Capital expenditure 5,099 2,107 1,249 611 635

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Regional Facilities Auckland Auckland Art Gallery


Who pays? Operating costs are funded primarily from general rates with the balance from external commercial revenue derived across the RFA organisation (including admission fees, venue rental, shop sales, food and beverage commissions, ticket commissions, on-charge of event related labour cost, sponsorship, merchandising, etc.).

Capital costs are funded from a mixture of borrowings, general rates, third party contributions, and externally donated artworks.

Where are budget decisions made? Governing Body: The overall budget is approved by the Governing Body through the LTP and Annual Plan process.

Local Boards: N/A

RFA Board: Approve the budget before submitting to Auckland Council as part of the LTP and Annual Plan process. Decisions regarding the allocation of funding within the total RFA budget envelope are recommended by management and approved by the RFA Board.

Management: Make decisions within the allocated budget envelopes and in accordance with the delegations from the Board.

Comments The following initiatives are in place to target revenue improvements: • One ticketed exhibition this financial year• Growth in smaller revenue streams including retail shop sales, café services, membership and conservation

work• International visitor admission charges (implemented by the Gallery in January 2018 for the first time)• Targeted focus on external grants and sponsorship for exhibitions and the learning programme.

As a result, associated cost of sales may increase to meet additional revenue targets

Key risks include: • Ticketed exhibitions are subject to increasing competition for the discretionary dollar• Continued level of corporate sponsorships for exhibitions and learning programmes required• A new international charges and donations initiative that has not been tested or baseline yet established• Relocation of the Art Gallery’s main storage facility.

What are your key projects/programmes? • Art Works Collection development.

What is the focus for the next 3 years? • Touring exhibitions• Maintaining international revenue streams.

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Regional Facilities Auckland Auckland Zoo


Auckland Zoo

What is delivered? Auckland Zoo is a leading centre for wildlife conservation with New Zealand’s largest collection of native and exotic species. The Zoo is in a unique position to bring people together to keep wildlife safe from future extinction. Auckland Zoo: • Provides exemplary care for wildlife that ensures their wellbeing and helps conserve species• Supports research to improve the science of wildlife management• Delivers experiences that touch people, connect them with nature and inspire them to care about wildlife• Provides unique learning opportunities to build understanding of wildlife within our community• Uses Zoo resources and expertise to help conserve wildlife in wild places and encourages our community

to care for and protect wildlife through their own actions• Ensures all resources (including retail products and services) are managed efficiently, effectively and

sustainably for these purposes.


2016/17 Actual

2017/18 Target

2018/19 Target

2019-28 (pa)


16 37 18 19-20


68% 61% 65% 65%


10 27 14 16-20




Other revenue 1,139 773 981 1,001 1,006

Total operating revenue 11,352 12,308 13,964 14,660 16,244

Staff costs 9,208 9,358 11,167 11,297 11,924

Grants, contributions and sponsorship 61 - 26 26 27



Repairs and maintenance 398 606 412 421 529



Capital revenue - - - - -

Capital expenditure 7,535 14,634 43,477 18,666 15,711

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Who pays? Operating costs are funded primarily from external commercial revenue (admission fees, venue rental, shop sales, food and beverage commissions, sponsorship, and merchandising) with the balance of funding from general rates.

Capital costs are funded from a mixture of borrowings and general rates.


Local Boards: N/A



Comments The South East Asia Precinct (approximately 20% of the Zoo footprint) is closed as construction continues through to completion in 2020. The impact on overall zoo experience for visitors has, and will continue to be, potentially significant. A variety of mitigation measures are being implemented to compensate for this impact during the construction period to help maintain visitation and revenue targets. These measures include:

• Temporary paid exhibits, such as the Bug Lab experience (closed August 2018)• Temporary free exhibits included as part of the general admission price• Activation of the South East Asia construction site as part of the Zoo visitor experience• Additonal planned and impromptu animal experiences during the Zoo visit to enhance the overall

customer experience.

Long standing vacancies will be recruited during the next period. Holding these positions vacant has historically helped to manage budget cuts in previous years. However, the increasing impact on customer experience, staff performance, ability to deliver revenue targets, and potential safety of staff and visitors is demonstating that this is no longer tenable.

Exceptionally wet or hot weather continues to have an adverse effect on revenue, particularly if peak visitation days are affected. Ongoing investment in infrastructure as part of the capital renewals programme will, over time, provide more opportunities to provide a high quality visitor experience despite these adverse weather conditions.

What are your key projects/programmes? • Renewal of the South East Asia, South America and Entry precincts

• Budget change request for funds to address the renewal of infrastructure systems that are necessary for theZoo to operate safely and within consented compliance for electrical services, potable water supply,wasterwater discharge, and trade waste discharge

• Renewal of the Sri Lanka, Pridelands and Te Wao Nui facilities

• New catering outlets including replacing Darwin’s Restaurant and refurbishing the Old Elephant House

• Schools Conservation Education Outreach Programme.

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What is the focus for the next 3 years? • Capital renewals

• Key stakeholder partnerships and community engagement.

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Regional Facilities Auckland New Zealand Maritime Museum


New Zealand Maritime Museum

What is delivered? New Zealand Maritime Museum holds and exhibits the largest maritime collection in New Zealand and aspires to explore and unite the people with the sea. The museum’s mission is to preserve, present and celebrate Aotearoa New Zealand’s maritime heritage, housing exhibitions spanning history from the first Polynesian explorers and settlers, to modern day triumphs at the America’s Cup.

Previously run by the New Zealand Maritime Museum Trust, ownership has recently transferred to RFA on 9 March 2018. The museum aims to:

• Provide rewarding, enjoyable and unique discovery experiences to Aucklanders of all ages in the area ofnational, regional and local maritime heritage

• Preserve, present, interpret and celebrate a collection of vessels, artefacts, documents and displays in away that stimulates interest

• Enhance learning and understanding as it tells the story of our ocean, coastal and harbour seafaring.


2016/17 Actual

2017/18 Target

2018/19 Target

2019-28 (pa)


16 37 18 19-20


68% 61% 65% 65%


10 27 14 16-20

How much does it cost?

Income and expenditure: $000 FY17 FY18 FY19 FY20 FY21

Actual Actual Budget Budget Budget Fees and user charges - 343 - - -

Other revenue - 1,247 2,842 2,898 2,955

Total operating revenue - 1,590 2,842 2,898 2,955 Staff costs - 834 2,505 2,555 2,606


Outsourced works and services - - 13 13 14

Consultancy and professional services - 5 71 73 74

Repairs and maintenance - 43 480 490 499

Other expenditure - 574 1,957 1,995 2,034

Total operating expenditure - 1,456 5,026 5,126 5,227

Capital revenue - - - - - Capital expenditure - 761 309 318 328

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Regional Facilities Auckland New Zealand Maritime Museum


Who pays? Operating costs are funded primarily from external commercial revenue (admission fees, venue rental, food and beverage commissions, sponsorship, commercial leases, and merchandising) with the balance of funding from general rates.



Local Boards: N/A



Comments The Maritime Museum was transferred to the RFA on 9 March 2018 and has a lease agreement with Panuku (which expires in nine years) for use of the land. Consideration needs to be made as to the long-term provision of this service and facility for our community, including associated cafès, and potential America’s Cup developments on the waterfront.

Previous ARAFA funding will be transferred to the RFA, as part of the RFA operating funding.

What are your key projects/programmes? • Facility developments, if any, to support the America’s Cup.

What is the focus for the next 3 years? • Consideration of long-term provision and location of this facility and service• Maximising synergies arising from integration into RFA.

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Regional Facilities Auckland RFA venues and events

Auckland Council Budget Guide 2018 3rd Edition

RFA venues and events

What is delivered? Due to commercial sensitivities, RFA’s three operational business units - Auckland Stadiums, Auckland Live and Auckland Conventions - have been aggregated for the purposes of this budget book. In addition to the community uses of these facilities, these business units operate in a highly volatile and competitive market for promoters and venue hirers.

These operational business units create a vibrant city where Aucklanders and visitors alike have the opportunity to experience an exciting range of live arts and entertainment, exhibitions, conventions, sports and community events. Service delivery is enabled through RFA’s operational brands:

• Auckland Live: a world-class arts and entertainment organisation that offers diverse and innovativeprogramming content to its visitors, ranging from big international shows and large festivals to smallercommunity engagement events. As a sector leader it is recognised as a creative hub and centre forperforming arts development, education, enrichment and high performance professional training.

• Auckland Conventions: attracts and delivers domestic/international conventions, meetings, commercialexhibitions, functions and dinners across all RFA venues.

• Auckland Stadiums: attracts and delivers sports events, concerts, and music festivals in our stadiumvenues. It supports high-performance sport organisations through its fit-for-purpose training andadministration facilities and also hosts community sport programmes for schools and local/regional clubs,providing them with affordable access to its facilities.


2016/17 Actual

2017/18 Target

2018/19 Target

2019-28 (pa)

The number of people who experience Regional Facilities Auckland's arts, environment and sports venues and events

3.2m 4.1m 3.5m 3.7 - 4m


16 37 18 19-20


68% 61% 65% 65%


10 27 14 16-20




Other revenue 5,806 5,561 4,974 5,158 5,287

Total operating revenue 37,310 36,630 38,430 39,407 40,260 Staff costs 11,501 12,259 13,647 13,494 13,722



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Repairs and maintenance 92 2,149 2,805 2,987 2,999



Capital revenue - - - - - Capital expenditure 14,353 8,750 23,954 9,356 8,514

Who pays?Operating costs are funded primarily from external commercial revenue (admission fees, venue rental, food and beverage commissions, ticketing commissions, sponsorship, merchandising, naming rights, etc.) with the balance of funding from general rates.

Capital costs are funded from a mixture of external funding, borrowings, and general rates.


Local Boards: N/A



Comments Events revenue is highly cyclical and volatile in nature and is expected to be variable from year to year. The increase from 2017/18 is due to: • Increased target for the number of live events and major concerts.• Increased visitation income targets at events and venues to be achieved through enhanced content

programming, improved food and beverage offerings, and other customer experience enhancementinitiatives

• Sourcing alternative revenue lines which could include:o securing naming rights partners;o creating more philanthropic opportunities with the private sector;o partnering with Australian arts and Auckland arts and tourism organisations at strategic and

operational levels;o developing the equipment hireage revenue streams for live events; ando developing the Australian and Asian markets for international conventions.

Expenditure budgeted to increase from 2017/18 as a result of: • Transfer of facilities management responsibilities from Corporate Support and Facilities Mangement to

Auckland Stadiums for stadium venues only;• Recruitment of long-standing vacancies which helped manage budget cuts in previous years, but are now

impacting on customer experience, staff performance, ability to deliver revenue targets, and safety of staffand our visitors; and

• Increased cost of sales to meet additional revenue.

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Key risks to achieving revenue targets include: • Market volatility of international touring acts;• Increasing competition for the discretionary dollar;• Increasing cost of accommodation for conference delegates;• Convention venues not available for use e.g. Viaduct Events Centre; and• Ongoing construction works at Aotea Centre.

What are your key projects/programmes? • Continuation of essential renewals at Western Springs in 2018/19• Investment into a QBE Stadium High Performance Centre in 2018/19 and 2019/20 with a contribution from

external parties• Refurbishment of Bruce Mason Centre food and beverage amenities and The Box café• Major refurbishment of Aotea Centre• Development of Aotea Studios.

What is the focus for the next 3 years? • Increasing diversity of revenue streams to reduce reliance on a volatile concert and events market• Maintaining or growing the conventions, meetings, commercial exhibitions, and functions revenue with the

ANZ Viaduct Events Centre no longer being available due to the hosting of the America’s Cup.

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Regional Facilities Auckland RFA Corporate Support and Facilities Management


RFA Corporate Support and Facilities Management

What is delivered? Corporate support and facilities management provides services across RFA through the following functions: • Property and facilities management services• Strategy, planning and finance• Procurement• Project management• ICT• People & culture• Risk and assurance• External relations• Customer experience• Health and safety• Security• Asset management planning• Operational funding for Trusts Arena, Vodafone Events Centre, and North Shore Events Centre• Managing the relationship with Stardome Observatory and Planetarium, MOTAT, Trusts Arena, Vodafone

Events Centre and North Shore Events Centre.

These services provide support across RFA’s events and operational business units. The nature of RFA’s businesses mean specialist, direct support and advice is critical to the success and safety of our operational delivery. The services are supplemented with Auckland Council shared services where this adds value to service delivery.

How is it measured? N/A



Fees and user charges 459 494 778 794 810

Other revenue 2,311 2,261 1,992 2,031 2,071

Total operating revenue 2,770 2,755 2,770 2,825 2,881

Staff costs 10,167 8,399 9,447 9,636 9,829

Grants, contributions and sponsorship 1,800 2,044 1,261 1,286 1,312


Consultancy and professional services 1,028 1,208 1,297 1,323 1,350

Repairs and maintenance 3,991 2,281 2,189 2,174 2,229



Capital revenue - - - - -

Capital expenditure 7,513 19,143 52,619 13,268 8,655

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Regional Facilities Auckland RFA Corporate Support and Facilities Management


Who pays? Operating costs are funded primarily from external commercial revenue (admission fees, venue rental, food and beverage commissions, sponsorship, merchandising, naming rights, etc) derived from across the organisation with the balance of funding from general rates.



Local Boards: N/A



Comments Revenue includes ground lease associated with Spark Arena and Bruce Mason Theatre carparking revenue.

Expenditure is expected to reduce from 2017/18 due to: • Transfer of facilities management responsibilities and associated budgets to Auckland Stadiums for the

stadium venues• Deferral and/or reduction of expenditure relating to repairs and maintenance, internal audit, staff recruitment,

ICT costs, and health and safety training.

The key risk to achieving budget is the impact of recent cost savings targets on property maintenance deferrals which may lead to higher costs in the longer term.

What are your key projects/programmes? • Procurement of major service functions to implement efficiencies• Asset condition assessments of RFA facilities to inform future renewals programmes.

What is the focus for the next 3 years? • Repairs and maintenance of existing facilities to ensure they are fit for purpose• Improved project delivery of agreed capital programme• Visitor security enhancements• Leveraging further shared services available from across the Auckland Council Group.

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regional facilities auckland (rfa) · exceptionally wet or hot weather continues to have an adverse...

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