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Minute Item Attachments of Bay of Islands-Whangaroa Community Board Meeting - 12 August 2019 Agenda of Audit, Risk, and Finance Committee Meeting - 28 March 2019

 

 

 

AGENDA

 

 

Audit, Risk, and Finance Committee Meeting

 

Thursday, 28 March 2019

Time:

12:45 pm

Location:

Council Chamber

Memorial Avenue

Kaikohe

 

 

Membership:

Cr John Vujcich - Chairperson

Mayor John Carter

Cr Tania McInnes

Cr Ann Court

Cr Felicity Foy

Cr Colin (Toss) Kitchen

Cr Sally Macauley

Cr Kelly Stratford

Member Bruce Robertson

Member Adele Gardner

Member Mike Edmonds

Member Terry Greening

 

 


Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

AUDIT, RISK AND FINANCE COMMITTEE - MEMBERS REGISTER OF INTERESTS

Name

Responsibility (i.e. Chairperson etc)

Declaration of Interests

Nature of Potential Interest

Member's Proposed Management Plan

Hon John Carter QSO

Board Member of the Local Government Protection Programme

Board Member of the Local Government Protection Program

 

 

Carter Family Trust

 

 

 

Felicity Foy

Director - Northland Planning & Development

I am the director of a planning and development consultancy that is based in the Far North and have two employees.

 

I will abstain from any debate and voting on proposed plan change items for the Far North District Plan.

I will declare a conflict of interest with any planning matters that relate to resource consent processing, and the management of the resource consents planning team.

I will not enter into any contracts with Council for over $25,000 per year. I have previously contracted to Council to process resource consents as consultant planner.

Flick Trustee Ltd

I am the director of this company that is the company trustee of Flick Family Trust that owns properties on Weber Place, Seaview Road, and Allen Bell Drive.

 

 

Elbury Holdings Limited

This company is directed by my parents Fiona and Kevin King.

This company owns several dairy and beef farms, and also dwellings on these farms. The Farms and dwellings are located in the Far North at Kaimaumau, Bird Road/Sandhills Rd, Wireless Road/ Puckey Road/Bell Road, the Awanui Straight and Allen Bell Drive.

 

Foy Farms partnership

Owner and partner in Foy Farms - a farm in three titles on Church Road, Kaingaroa

 

 

Foy Farms Rentals

Owner and rental manager of Foy Farms Rentals for 6 dwellings on Church Road, Kaingaroa and 1 dwelling on Allen Bell Drive, Kaitaia

 

 

King Family Trust

This trust owns several titles/properties at Cable Bay, Seaview Rd/State Highway 10 and Ahipara - Panorama Lane.

These trusts own properties in the Far North.

 

Previous employment at FNDC 2007-16

I consider the staff members at FNDC to be my friends

 

 

Partner Felicity Foy

Employed by Justaplumber Taipa

 

 

 

Friends with some FNDC employees

 

 

 

Colin Kitchen

No form received

 

 

 

Tania McInnes

Director – GBT Ventures Ltd

 Company not currently operational

 

 Will notify Council if company becomes operational.

Member of Northland Conservation Board

 

Conservation matters not aligned with Council policy.

Will notify Council should a perceived conflict arise.

Trustee – Northland Youth Education Trust

 

No perceived conflicts

Will notify Council should a perceived conflict arise.

Founder – Bay of Islands Women’s Nexus

No perceived conflicts. An informal organisation

 

 

Own a section on Seaview Road, Paihia 0200

 

 

 

Having worked within the organisation in the early 2000’s, I know a number of staff, none of which I am close with.

 

 

 

John Vujcich

Board Member

Ngati Hine Health Trust

Matters pertaining to property or decisions that may impact of their health services

Declare interest and abstain

Board Member

Pioneer Village

Matters relating to funding and assets

Declare interest and abstain

Director

Waitukupata Forest Ltd

Potential for council activity to directly affect its assets

Declare interest and abstain

Director

Rural Service Solutions Ltd

Matters where council regulatory function impact of company services

Declare interest and abstain

Director

Kaikohe (Rau Marama) Community Trust

Potential funder

Declare interest and abstain

Partner

MJ & EMJ Vujcich

Matters where council regulatory function impacts on partnership owned assets

Declare interest and abstain

Member

Kaikohe Rotary Club

Potential funder, or impact on Rotary projects

Declare interest and abstain

Member

New Zealand Institute of Directors

Potential provider of training to Council

Declare a Conflict of Interest

Member

Institute of IT Professionals

Unlikely, but possible provider of services to Council

Declare a Conflict of Interest

Member

Kaikohe Business Association

Possible funding provider

Declare a Conflict of Interest

Ann Court

Waipapa Business Association

Member

Warren Pattinson Limited

Shareholder

Building company. FNDC is a regulator and enforcer

No FNDC Controls

Kerikeri Irrigation

Supplies my water

 

No EM intervention in disputes

Top Energy

Supplies my power

 

No other interest greater than the publics

District Licensing

N/A

N/A

N/A

Top Energy Consumer Trust

Trustee

Crossover in regulatory functions, consenting economic development and contracts such as street lighting.

Declare interest and abstain from voting.

Ann Court Trust

Private

Private

N/A

Waipapa Rotary

Honorary member

Potential community funding submitter

Declare interest and abstain from voting.

Properties on Onekura Road, Waipapa

Owner Shareholder

Any proposed FNDC Capital works or policy change which may have a direct impact (positive/adverse)

Declare interest and abstain from voting.

Property on Daroux Dr, Waipapa

Financial interest

 

 

Flowers (I get flowers occasionally)

Ratepayer 'Thankyou'

Bias/ Pre-determination?

Declare to Governance

Coffee and food

Ratepayers sometimes 'shout' food and beverage

Bias or pre-determination

Case by case

Consider all staff my friends

N/A

Suggestion of not being impartial or pre-determined!

Be professional, due diligence, weigh the evidence. Be thorough, thoughtful, considered impartial and balanced. Be fair.

 

My husband is a builder and may do work for Council staff

 

 

Warren Pattinson (Husband)

Warren Pattinson Limited

Director

Building Company. FNDC is a regulator

Remain at arm’s length

Air NZ

shareholder

None

None

Warren Pattinson Limited

Builder

FNDC is the consent authority, regulator and enforcer.

Apply arm’s length rules

Kurbside Rod and Custom Club (unlikely)

President NZ Hot Rod Association

Potential to be linked to a funding applicant and my wife is on the decision making committee.

unlikely to materialise but would absent myself from any process as would Ann.

Property on Onekura Road, Waipapa

Owner

Any proposed FNDC capital work in the vicinity or rural plan change. Maybe a link to policy development.

Would not submit.                                                                               Rest on a case by case basis.

Sally Macauley

Chairman

Northland District Health Board

Matters pertaining to health issues re Fluoride and freshwater as an example.

Declare a perceived conflict.

Chairman

Oranga Tamaraki - Ministry of Vulnerable Children- Northland Community Response Forum

Matters pertaining to this ministry

Declare a perceived conflict.

Judicial Justice of the Peace

Visitations to Ngawha Prison

Matters pertaining to Judicial Issues re Ngawha Prison

Declare a perceived Interest

The Turner Centre

FNDC Representative

Observer, acknowledging FNDC financial contribution.

Note FNDC partnership

Trustee

Kaikohe Education Trust

Providing students laptops - possible request for written support to funders

Declare a conflict

Executive member

Kaikohe Business Association

Matters pertaining to request for written support to funders.

 

Chairman

Bay of Islands Arts Festival Trust

Issues pertaining to the application of support funds

Declare a conflict of interests

Trustee

Bay of Islands Radio Marine

Issues pertaining to the application of support funds

Declare a conflict of interests

Secretary/Trustee

Kerikeri International Piano Competition

Issues pertaining to the application of support funds

Declare a conflict of interests

Trustee/Director

Kaikohe Community and Youth Trust

Possible application of support funding

Declare a conflict of interests

Commercial

Palmer Macauley Offices- Kerikeri and Kaikohe

Infrastructural matters with FNDC

Declare a conflict

Private property of which there would not be any conflict.

 

 

Paihia, Kerikeri, Kaikohe

 

 

 

Peter Macauley (Husband)

Senior Partner

Palmer Macauley

 

 

Peter Macualey

Barristers and Solicitors- Kerikeri, Kaikohe and Mangonui

Legal matters with FNDC

 

Director/Trustee

 

 

St John NZ Priory Chapter

St John Priory Chapter

Legal matters with FNDC

Declare a conflict

Senior Partner

Peter Macauley- Palmer Macauley Barristers and Solicitors Kaikohe, Kerikeri AND Mangonui

Legal matters with FNDC

Declare a conflict

St John NZ

Priory Trust Board

Writing of policies and legal matters as an example

Note Interests

Lions Club of Kaikohe

Director

Legal matters etc

Note Interests

Kaikohe Rugby Club

Patron

Legal Matters

 

Viking Rugby Club, Whangarei

Life Member

Legal Matters

 

Private Property

 

 

Kerikeri, Paihia - no contents.

 

 

 

Bruce Robertson

No interests to declare

 

 

 

Mike Edmonds

Chair

Kaikohe Mechanical and Historic Trust

Council Funding

 Decide at the time

Committee member

Kaikohe Rugby Football and Sports Club

Council Funding

Withdraw and abstain

Adele Gardner

N/A - FNDC Honorarium

 

 

 

The Far North 20/20, ICT Trust

Trustee

 

 

Te Ahu Charitable Trust

Trustee

 

 

ST Johns Kaitaia Branch

Trustee/ Committee Member

 

 

I know many FNDC staff members as I was an FNDC staff member from 1994-2008.

 

 

 

Partner of Adele Gardner

N/A as Retired

 

 

 

Terry Greening

Greening Family Trust

Beneficiary

 

Highly unlikely to interface with FNDC

Bay of Islands Walking Weekend Trust

 

Potential of seeking funds

Step aside from any requests or decisions regarding requests

Russell 2000 Trust (Chairman)

 

 

Trust is about to wind up.

Russell Centennial Trust    (Chairman)

Manages Russell Museum

Seeks funds from council

Step aside from any requests or decisions regarding requests

Residence at Kaha Place, Russell

Nil

Nil

N/A

Terry Greening (Wife)

Greening Family Trust

Beneficiary

N/A

N/A

Residence at Kaha Place, Russell

 

 

 

Cr Kelly Stratford

Office manager at Kinghans.

 

 

 

Denture assistant at Kawakawa denture Services
self-employed as book keeper
Kelly@ksbookkeeoing.net

None

None

 

KS Bookkeeping and Administration

Business owner, bookkeeping and development of environment management plans for clients.

None perceived

I’d step aside from decisions that arise, that may have conflicts.

Kinghans Accounting

Office Administration

None perceived

Step aside from decisions that arise, that may have conflicts.

Waikare Marae Trustees

Trustee

May be perceived conflicts

Case by case basis

Kawakawa Business & Community Association

Committee member/newsletter editor and printer

None perceived

If there was a perceived conflict, I will step aside from decision making

Bay of Islands College

Parent elected trustee

None perceived

If there was a perceived conflict, I will step aside from decision making

Karetu School

Bay Cosmos Soccer

Parent elected trustee. Committee member and coach

None perceived

If there was a perceived conflict, I will step aside from decision making

Property in Waikare and Moerewa

 

 

If there was a perceived conflict, I will step aside from decision making

Coffee and food

Ratepayers sometimes 'shout' food and beverage

Bias or pre-determination

Case by case

Kelly Stratford (Husband)

Puketona Junction Café

39 Gillies Café

Barista & Chef

Barista

N/A

 N/A

 

Property in Moerewa

 

N/A

N/A

 

 

 


Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

Far North District Council

Audit, Risk, and Finance Committee Meeting

will be held in the Council Chamber, Memorial Avenue, Kaikohe on:

Thursday 28 March 2019 at 12:45 pm

Order Of Business

1          Apologies and Declarations of Interest 11

2          Deputation. 11

3          Confirmation of Previous Minutes. 12

3.1            Confirmation of Previous Minutes. 12

4          Strategic Planning and Policy Group. 19

4.1            Draft Far North Holdings Limited Statement of Intent 2019-2022. 19

5          Corporate Services Group. 36

5.1            Amendments to Rating Relief Policies. 36

5.2            Level of Service Quarter 2 Performance Report 68

5.3            Long Term Asset Funding Update. 94

5.4            Revenue Recovery Report 98

5.5            Council Financial Report February 2019. 104

6          Public Excluded. 122

6.1            Confirmation of Previous Minutes (Public Excluded) 122

6.2            Internal Audit and Assurance. 122

6.3            FNDC Current Legal Action Potential Liability Claims. 122

6.4            Blues-Chiefs Preseason Game Review.. 122

7          Meeting Close. 123

 

 


1            Apologies and Declarations of Interest

Members need to stand aside from decision-making when a conflict arises between their role as a Member of the Community Board and any private or other external interest they might have. This note is provided as a reminder to Members to review the matters on the agenda and assess and identify where they may have a pecuniary or other conflict of interest, or where there may be a perception of a conflict of interest.

If a Member feels they do have a conflict of interest, they should publicly declare that at the start of the meeting or of the relevant item of business and refrain from participating in the discussion or voting on that item. If a Member thinks they may have a conflict of interest, they can seek advice from the Chief Executive Officer or the Team Leader Governance Support (preferably before the meeting).

It is noted that while members can seek advice the final decision as to whether a conflict exists rests with the member.

2            Deputation

No requests for deputations were received at the time of the Agenda going to print.


Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

3            Confirmation of Previous Minutes

3.1         Confirmation of Previous Minutes

File Number:           A2339435

Author:                    Melissa Wood, Meetings Administrator

Authoriser:             Kate Barnes, Governance Support Team Leader

 

Purpose of the Report

The minutes of the previous Audit, Risk, and Finance Committee meeting are attached to allow the Committee to confirm that the minutes are a true and correct record

Recommendation

That the Audit, Risk, and Finance Committee confirm that the minutes of the meeting of the Committee held 29 November 2018 are a true and correct record.

 

1) Background

Local Government Act 2002 Schedule 7 clause 28 states that a local authority must keep minutes of its proceedings.  The minutes of these proceedings duly entered and authenticated as prescribed by a local authority are prima facie evidence of those meetings.

 

2) Discussion and Options

The minutes of the meeting are attached. Far North District Council Standing Orders Section 27.3 states that no discussion shall arise on the substance of the minutes in any succeeding meeting, except as to their correctness.

Reason for the recommendation

The reason for the recommendation is to confirm the minutes are a true and correct record of the previous meeting

3) Financial Implications and Budgetary Provision

There are no financial implications or the need for budgetary provision as a result of this report.

 

 

Attachments

1.       Unconfirmed Minutes - Audit, Risk, and Finance Committee 29 November 2018 - A2283847  


 

Compliance schedule:

Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular:

1.       A Local authority must, in the course of the decision-making process,

a)      Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and

b)      Assess the options in terms of their advantages and disadvantages; and

c)      If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga.

2.       This section is subject to Section 79 - Compliance with procedures in relation to decisions.

Compliance requirement

Staff assessment

State the level of significance (high or low) of the issue or proposal as determined by the Council’s Significance and Engagement Policy

Not applicable

State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.

Not applicable

State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought.

Not applicable

State the possible implications for Māori and how Māori have been provided with an opportunity to contribute to decision making if this decision is significant and relates to land and/or any body of water.

None

Identify persons likely to be affected by or have an interest in the matter, and how you have given consideration to their views or preferences.

Not applicable

State the financial implications and where budgetary provisions have been made to support this decision.

There are no financial implications or the need for budgetary provision arising from this report.

Chief Financial Officer review.

The Chief Financial Officer has not reviewed this report.

 

 


Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

   MINUTES OF Far North District Council
Audit, Risk, and Finance Committee Meeting
HELD AT THE
Council Chamber, Memorial Avenue, Kaikohe
ON
Thursday, 29 November 2018 AT 10:00 am

 

PRESENT:              Cr John Vujcich, Mayor John Carter (HWTM), Cr Tania McInnes (Deputy Mayor), Cr Ann Court, Cr Colin (Toss) Kitchen, Cr Sally Macauley, Cr Kelly Stratford, Member Bruce Robertson, Member Adele Gardner, Member Mike Edmonds, Member Terry Greening

APOLOGIES:         Cr Felicity Foy

IN ATTENDANCE: Shaun Reilly – Kaikohe-Hokianga Community Board Member

STAFF PRESENT:   Shaun Clarke - Chief Executive Officer, Samantha Edmonds - General           Manager Corporate Services, Andy Finch - General Manager Infrastructure &         Asset Management, Darrell Sargent - General Manager Strategic Planning    & Policy, Jaime Dyhrberg - Executive Officer, Janice Smith - Chief Financial         Officer, George Swanepoel - In-House Counsel, Matt Bell - Manger Risk &           Improvement, Glenn Rainham - Manager Alliances, Tanya Reid - Business        Improvement Advisor, Leanna Ransom - Internal Auditor, Tanya Nowell -    Team Leader Infrastructure Programmes, Alastair Wiseman - Manager Health Safety & Wellbeing

 

1            Apologies and Declarations of Interest

Apology

Committee Resolution  2018/7

Moved:       Cr Kelly Stratford

Seconded:  Cr Ann Court

That the apology received from Cr Foy be accepted and leave of absence granted.

Carried

 

3            Corporate Services Group

3.1         Confirmation of Previous Minutes

Committee Resolution  2018/8

Moved:       Member Adele Gardner

Seconded:  Member Terry Greening

That the Audit, Risk, and Finance Committee confirm that the minutes of the meeting of the Committee held 27 September 2018 are a true and correct record.

Carried

 

3.2A      Deputation

Matthew Wilson from Aon New Zealand (Insurance Company)

Deputy Mayor McInnes left the meeting at 10:25 am and rejoined the meeting at 10:57 am.

Mayor Carter left the meeting at 10:30 am and rejoined the meeting at 10:31 am

Councillor Kitchen left the meeting at 10:37 am and rejoined the meeting at 10:39 am

 

3.2         Insurance renewal considerations

Committee Resolution  2018/9

Moved:       Cr Kelly Stratford

Seconded:  Member Bruce Robertson

That the Audit, Risk, and Finance Committee

a)      approve the additional funding required in future years to provide for public liability and professional indemnity insurance quoted by Aon Insurance of $115,000

                                                                                                                                               CARRIED

b)      approve the additional funding required in 2019/20 and 2022/23 for the Riskpool additional calls of approximately $104,000 in each year

                                                                                                                                               CARRIED

c)      consider the requirement for insurance cover for underground assets based on the possible loss information provided and if necessary, approve an additional $65,000 in the budget from 2019/20 onwards

Amendment

Moved:       Member Bruce Robertson

Seconded:  Mayor John Carter

c)      Confirms that Council do not insure underground assets, for 2019/20, but consider the     impacts on the financial strategy with respect to self-funding and asset management.

Carried

Councillor Stratford requested a vote by division

For

Against

Mayor Carter

Cr Stratford

Cr Macauley

Member Greening

Member Robertson

Member Gardner

Cr Court

Member Edmonds

Cr Kitchen

 

Deputy Mayor McInnes

 

Cr Vujcich

 

The amendment became the substantive motion

That the Audit, Risk, and Finance Committee

a)      approve the additional funding required in future years to provide for public liability and professional indemnity insurance quoted by Aon Insurance of $115,000

b)      approve the additional funding required in 2019/20 and 2022/23 for the Riskpool additional calls of approximately $104,000 in each year

c)      Confirms that Council do not insure underground assets, for 2019/20, but consider the impacts on the financial strategy with respect to self-funding and asset management.

Carried

Councillor Stratford abstained from voting

3.3         Council Financial Report October 2018

Committee Resolution  2018/10

Moved:       Cr Ann Court

Seconded:  Member Adele Gardner

That the Audit, Risk, and Finance Committee receive the report entitled “Council Financial Report 31 October 2018”

Carried

 

4            Information Reports

4.1         Level of Service KPI Performance Report - Quarter 1

Committee Resolution  2018/11

Moved:       Cr Colin (Toss) Kitchen

Seconded:  Mayor John Carter

That the Audit, Risk, and Finance Committee receive the report ”Level of Service KPI Performance Report - Quarter 1.”

Carried

 

5            Public Excluded

RESOLUTION TO EXCLUDE THE PUBLIC

Committee Resolution  2018/12

Moved:       Cr Tania McInnes

Seconded:  Cr Kelly Stratford

That the public be excluded from the following parts of the proceedings of this meeting.

The general subject matter of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under section 48 for the passing of this resolution

5.1 - Confirmation of Previous Minutes (Public Excluded)

s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

s7(2)(c)(i) - the withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information, or information from the same source, and it is in the public interest that such information should continue to be supplied

s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege

s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities

s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

5.2 - Internal Audit Update - November

s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

5.3 - FNDC Current Legal Action Potential Liability Claims

s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege

s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

 

Carried

 

 

6            CONFIRMATION OF INFORMATION AND DECISIONS IN OPEN MEETING

Committee Resolution  2018/13

Moved:       Cr Tania McInnes

Seconded:  Cr Kelly Stratford

That the Audit, Risk, and Finance Committee confirms that the information and decisions contained in the part of the meeting held with the  public excluded are not to be restated in public meeting.

Carried

 

6            Meeting Close

The Meeting closed at 11:56 am.

 

The minutes of this meeting will be confirmed at the Audit, Risk, and Finance Committee Meeting held on 28 March 2019

 

...................................................

CHAIRPERSON

 


Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

4            Strategic Planning and Policy Group

4.1         Draft Far North Holdings Limited Statement of Intent 2019-2022

File Number:           A2395737

Author:                    Sheryl Gavin, General Manager Corporate Services (Acting)

Authoriser:             Shaun Clarke, Chief Executive Officer

 

Purpose of the Report

This report presents the draft Statement of Intent of Far North Holdings Limited for the three years from 1 July 2018 to 30 June 2021.

Executive Summary

·        The Statement of Intent presented complies with the requirements of the Local Government Act. 

·        This report was submitted via email to Shaun Clarke, Chief Executive Officer, Sheryl Gavin, General Manager Corporate Services (Acting) and Janice Smith, Chief Financial Officer on 28 February 2018.

 

Recommendation

That the Audit, Risk, and Finance Committee recommend Council confirm the Far North Holdings Statement of Intent 2019-2022.

 

1) Background

The requirements for the governance and accountability of council-controlled organisations (CCO) and council organisations are set out in Part 5, Sections 55-74, of the Local Government Act 2002 (LGA) and Schedule 8, Clauses 1-10, of the LGA sets out specific provisions regarding Statements of Intent (SOI).

The purposes of a SOI are to:

a.         Provide transparency to the community about the proposed activities and intentions of the CCO for the forthcoming year

b.         Enable Council, as the shareholder in the CCO to influence the direction of the company

c.         Create a basis for accountability of the Directors of the CCO to Council as the shareholder.

Section 64, LGA requires every CCO to have a SOI that complies with clauses 9 and 10 of Schedule 8 of the LGA. These clauses outline the statutory content of a SOI.

The statutory provisions of Schedule 8 require the Board to deliver to its shareholders a draft SOI on or before 1 March each year then consider any comments on the draft SOI made to it within 2 months of 1 March before delivering the completed SOI on or before 30 June each year.

The shareholder, Council, can either agree with the draft SOI or require the Board to modify the SOI on any matter included in Clause 9 (1)( a) to (i). Modification must be by way of resolution and the shareholder is first required to consult the Board as to the matters to be modified.

The effect of the timing provisions is that the shareholder, Council, has until 30 April to make any comments back to the company on changes it would like to see made to the draft SOI.  The CCO must then consider these comments and submit its final SOI to the shareholder by 30 June.

Far North Holdings Limited (FNHL) has met its statutory obligations by submitting a draft SOI by the statutory deadline. A copy of the draft SOI is attached.

2) Discussion and Options

The draft SOI contains information specified in Clause 9, Schedule 8, LGA.  The SOI is consistent with previous SOIs that have been submitted by FNHL.

Reason for the recommendation

The receipt of the draft Statement of Intent from the Council CCTO, Far North Holdings Limited, is part of the compliance requirements of a statutory process.  The reason for the recommendation is to confirm the draft SOI and recommend the report be received by Council at a meeting prior to 30 June 2019.

3) Financial Implications and Budgetary Provision

There are no financial implications or the need for budgetary provision.

Attachments

1.       DRAFT Statement of Intent 2019  to 2022 - A2400587  


 

Compliance schedule:

Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular:

1.       A Local authority must, in the course of the decision-making process,

a)      Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and

b)      Assess the options in terms of their advantages and disadvantages; and

c)      If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga.

2.       This section is subject to Section 79 - Compliance with procedures in relation to decisions.

 

Compliance requirement

Staff assessment

State the level of significance (high or low) of the issue or proposal as determined by the Council’s Significance and Engagement Policy

As this is a report for Audit, Risk & Finance Committee to recommend to Council and requires no decisions to be made by the Audit, Risk, and Finance Committee it is deemed to have a low to medium level of significance.

State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.

Part 5, Sections 55-74, of the Local Government Act 2002 (LGA)

Schedule 8, Clauses 1-10, of the Local Government Act 2002 (LGA)

State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought.

The matter has District wide relevance.

State the possible implications for Māori and how Māori have been provided with an opportunity to contribute to decision making if this decision is significant and relates to land and/or any body of water.

Considered in relation to proposed performance objectives of FNHL.

Identify persons likely to be affected by or have an interest in the matter, and how you have given consideration to their views or preferences.

Not applicable.

State the financial implications and where budgetary provisions have been made to support this decision.

There are no financial implications or the need for budgetary provision arising from this report.

Chief Financial Officer review.

The Chief Financial Officer has reviewed this report

 

 


Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

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Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

5            Corporate Services Group

5.1         Amendments to Rating Relief Policies

File Number:           A2386461

Author:                    Janice Smith, Chief Financial Officer

Authoriser:             Sheryl Gavin, General Manager Corporate Services (Acting)

 

Purpose of the Report

To seek a recommendation to amend the rating relief polices adopted as part of the 2018/28 LTP process where issues around interpretation and application have been identified.

Executive Summary

·        The document Rating Relief Policies was adopted by Council in June 2018 as part of the 2018/28 LTP process.

·        Staff have been working with the revised polices and have identified some minor issues that need to be amended to allow the policies to be applied as intended.

·        Once the amendments have been approved it will be necessary to conduct a short consultation with the public.

 

Recommendation

That the Audit, Risk, and Finance Committee recommend to Council that the following amendments to the Rating Relief Polices are approved prior to consultation:

i)       The Transitional Farmland policy is re-instated

ii)      The Treaty Settlement Lands policy is amended to include settlements approved prior to 1 July 2018

iii)     The Common Use Properties policy is amended to include commercial enterprises and residential properties

iv)     The Landlocked Land policy is amended to refer Maori land issues to the Maori Land Court for decision

v)      The Land Subject to Protection for Outstanding Natural Landscape, Cultural, Historic or Ecological Purposes policy is amended to include covenants approved under the Heritage New Zealand Pouhere Taonga Act 2014 (or Historic Places Act 1993)

vi)     The Residential Rates for Senior Citizens policy is amended to provide clarity for conditions 1 and 4 to allow staff to apply the conditions fairly to all applicants.

 

 

1) Background

As part of the 2018/28 LTP process the Rating Relief Policies were re-drafted into plain English and those thought to no longer be necessary were rescinded.

Since adoption of the revised policies, staff have identified some issues of interpretation that appear to be at odds with the intention of the policies.

Approval is now sought to make some small amendments to these policies so that they can be effectively applied in a consistent manner.

2) Discussion and Options

Since 1 July 2018, staff have been working with the revised Rating Relief Policies and have noted that the following issues require amendment:

a)    Transitional Farmland Policy

This policy was always intended to be a transitional policy and stated that:

 

“This policy is a transitional policy which will remain in force until council so decides or until the last affected property no longer qualifies, whichever is the sooner. No further applications will be considered under this policy”

 

There are 11 active postponements under this policy and when Council made the decision to rescind the policy, technically the postponement on all 11 accounts ceased. Staff do not think that this was the intention and permission is sought to re-instate the policy with the same clause as stated above.

 

b)    Treaty Settlement Lands

This policy was introduced to provide some relief where lands were returned under treaty settlements as General Title Land and therefore not eligible for relief under the Maori Freehold Land policies.

 

The policy became effective from 1 July 2018 but did not provide for the conditions and criteria to apply to lands that had settled prior to that date

 

It is recommended that the policy be applied retrospectively to any lands settled prior to 1 July 2018 under the Treaty of Waitangi settlement processes.

 

c)    Common Use Properties

This policy is intended to provide some relief to owners that do not strictly meet the requirements of S20 of the Local Government (Rating) Act 2002 for contiguous properties. It would typically be applied to farms, commercial enterprises and residential properties which span more than one rating unit.

 

The policy as currently written can only be applied to farm land or commercial developments which are vacant.

 

When the policy was re-written it was not the intention to create the above limitation and it is recommended that the following amendments be included:

 

Condition and criteria 4.

That this should be amended to include “or commercial enterprise” after the word “farm”

 

Condition and criteria 5.

A new condition is included as follows:

 

In the case of residential rating units where two or more separately owned rating units are        owned by an individual and/or trust and are contiguous but the ownership is not an exact match, the rating units will be considered as one. For this to apply one unit must have a dwelling and the other unit(s) considerable development which proves that the rating units are being used as one.  E.g. House/dwelling on one rating unit and or garden and garage on the other rating unit.

 

Existing conditions and criteria 5 and 6 be re-numbered 6 and 7

 

d)    Land Locked Land

This policy applies to both General Title and Maori Freehold Land.

However, the policy requires the applicant to apply to the High Court under the Property Law Act 2007 to have the land declared “land locked”.

 

A legal opinion has been received that advises that only the Maori Land Court can make this declaration in relation to Maori Freehold Land.

 

It is therefore recommended that condition and criteria 1 be amended to add

 

“or, in the case of Maori Freehold Land, as determined by the Maori Land Court”.

 

e)    Land Subject to Protection for Outstanding Natural Landscape, Cultural, Historic or Ecological Purposes

Under condition 2 of this policy a series of sections of relevant Acts are referred to under which this policy can be applied.

 

It has been identified that there are some covenants that are legally applied under the Heritage New Zealand Pouhere Taonga Act 2014 (or Historic Places Act 1993) and that this reference has been omitted.

 

Whilst it can be assumed that it would be Council’s intent to include such covenants, they cannot be included without the specific Act being added to the policy

 

It is recommended that the Heritage New Zealand Pouhere Taonga Act 2014 (or Historic Places Act 1993) be added to condition 2.

 

f)     Residential Rates for Senior Citizens

There are 2 conditions within this policy that are not clear or easy to apply.

 

Condition and criteria 1 (b) refers to an applicant being “on a fixed income” but does not include a definition of what this might mean. It is recommended that the following definition be added:

 

“an income from a pension or investment that is set at a particular figure and does not vary like a dividend or rise with the rate of inflation”

 

Condition and criteria 4 requires staff to make an assessment of an applicant’s income in order to determine if they have insufficient funds remaining to pay their rates. Staff are not trained to make such assessments therefore it is suggested that the following be added:

 

“if the applicant qualified for the Rates Rebate then their income has already been tested and they therefore qualify for the Rates Postponement”.

 

All amendments to the policies are identified in green in the attached document.

 

Legislative process to amend remission and postponement policies

 

Remission and postponement policies are made under section 102(2)(e) of the Local Government Act (LGA). Amendments to these policies are subject to consultation that gives effect to section 82 of the LGA. In practical terms, this means that those who are affected by the amendments must be consulted in any way Council sees fit as long as the requirements of section 82 are fulfilled and consultation is aligned with Council’s policy on Significance and Engagement. Note that the required consultation is not a Special Consultative Procedure, and therefore does not require notification, a statement of proposal or formal hearings.

 

Following adoption of the draft amendments by Council an appropriate consultation period will take place, followed by formal adoption prior to the end of June 2019. A consultation plan will be developed should this Committee recommend approval of the proposed amendments to Council.

Reason for the recommendation

The above anomalies have been identified in the Rating Relief Policies and staff are recommending amendments so that the policies can be effectively and fairly applied.

3) Financial Implications and Budgetary Provision

There are no financial implications arising from this report

Attachments

1.       Rating Relief Policies - A2391572

2.       Transitional policy for the postponement of rates on farmland - A2391574  


 

Compliance schedule:

Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular:

1.       A Local authority must, in the course of the decision-making process,

a)      Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and

b)      Assess the options in terms of their advantages and disadvantages; and

c)      If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga.

2.       This section is subject to Section 79 - Compliance with procedures in relation to decisions.

 

Compliance requirement

Staff assessment

State the level of significance (high or low) of the issue or proposal as determined by the Council’s Significance and Engagement Policy

Low

State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.

This is an amendment to existing Council Rating Relief Policies

State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought.

N/A

State the possible implications for Māori and how Māori have been provided with an opportunity to contribute to decision making if this decision is significant and relates to land and/or any body of water.

N/A

Identify persons likely to be affected by or have an interest in the matter, and how you have given consideration to their views or preferences.

N/A

State the financial implications and where budgetary provisions have been made to support this decision.

None

Chief Financial Officer review.

The Chief Financial Officer prepared this report

 

 


Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

 

 

 

 

 


Introduction

Section 102(3) of the Local Government Act 2002 (LGA 02) provides that a council may adopt a rates remission policy and a postponement policy. This policy addresses both the remission and postponement of rates. 

Sections 102(1) and 101(2) of the LGA 02 require councils to adopt a policy for the remission and postponement of rates on Māori Freehold Land. In the development of these policies, Council has considered Schedule 11 of the LGA 02 and recognises that the nature of Māori land is different to General Title Land.

The objectives of Council’s rating relief policies are to:

1.   


1.    Provide an equitable system of rating remission and postponement for all sectors of the community;

2.    Provide ratepayers with financial assistance where they might otherwise have difficulty meeting their obligations to pay rates;

3.    Align with Council’s community outcomes and strategic priorities;

4.    Recognise that certain unoccupied Māori Freehold Land not used may have particular conditions, ownership structures, or other circumstances which make it appropriate to remit or postpone rates for defined periods of time; and

5.    Ensure consideration of Schedule 11 of the LGA 02 (matters relating to rates relief on Māori Freehold Land).


 

Making an application? This is what you need to know:

1.   


1.    All applications under these policies must be made in writing, signed by the owner/ratepayer, and accompanied by any required supporting documentation. After an application has been submitted, further documentation may be requested. In that event, the applicant will be notified accordingly.

2.    As provided for in section 88 of the Local Government (Rating) Act 2002 (LGRA 02), a postponement fee may be calculated and added to the postponed rates.

3.    The basis of calculating the postponement fee is included in each year’s Funding Impact Statement, which can be found in the Long Term or Annual Plan for that year.

4.    The owner(s) of the property must provide proof of eligibility which will be confirmed with relevant Council information.

5.    Where land is in multiple ownership, a written statement authorising an individual to act for one or more owners must be submitted with all applications.

6.    Where a property or part of that property is sold within the period of remission or postponement, Council has the right to recover the rates remitted or postponed for the applicable period. This may apply to the whole property or only to that portion of the portion that has been sold.

7.    Council may require further information from the applicant if deemed necessary to process the application.

8.    Council reserves the right to inspect the use of a property, where appropriate, for application assessment and to confirm compliance with policy criteria from time to time.

9.    Any decision made by Council under this policy is final.


10.   Remissions or postponements granted under previous policies will remain in force as per those policies.

11.   Applications may be made for a remission or postponement of rates in circumstances which are not included in the separate policy category sections set out below. These are known as “outside of policy” applications. Council’s authority is restricted by the provisions of the LGRA 02. For that reason, all such applications “outside of policy” must be in writing, and accompanied by sufficient detail and documentation to support a decision by Council. 

12.   Council is under no obligation to approve any applications that do not comply with the established policies and Council’s decision on the matter is final.

13.   Council’s decision whether to grant or deny an application for remission or postponement of rates will be based upon:

a.   The application itself; and,

b.   All supporting documents submitted by the applicant; and,

c.   Any relevant information and/or documentation held in Council’s records.

14.   Except where otherwise indicated, Council reserves the right to grant or deny any and all applications for remission or postponement of rates under these policies.



 

Table of Contents

Introduction. 1

Making an application? This is what you need to know: 1

Table of Contents. 3

Definitions. 4

Common-Use Properties. 5

Community, Sports and Not-for-profit Organisations. 6

Excess Water Charges. 7

Incentivising Māori Economic Development 8

Landlocked Land. 9

Land Subject to Protection for Outstanding Natural Landscape, Cultural, Historic or Ecological Purposes. 10

Māori Freehold Land Not Used. 12

New Users of Māori Freehold Land. 13

Papakāinga on Māori Freehold Land. 14

Penalties. 15

Properties Spanning Multiple Districts. 16

Residential Rates for Senior Citizens. 17

School Sewerage Charges. 19

Treaty Settlement Lands. 20

Unusable Land. 21

Wastewater Charges on Government Funded Subsidy Schemes. 22

Proposed Policies for Revocation. 23


 

Definitions

For the purpose of these policies, words used in the singular include the plural, and words used in the plural include the singular.

ARREAR means unpaid rates as at 30 June of the rating year prior to application.

COUNCIL means the Far North District Council and includes any person or agent authorised by the Far North District Council.

LANDLOCKED has the same meaning as defined in the Property Law Act 2007.

MĀORI FREEHOLD LAND has the same meaning as defined in Te Ture Whenua Māori Act 1993 Part VI section 129(2)(a).

NATURAL DISASTER has the same meaning as in the Earthquake Commission Act 1993.

NEW USER is a person that has not been previously identified in Council’s Rates Information Database as being responsible for the rates on the land.

OCCUPIED means a formal right by occupation order or informal right by licence to occupy Māori Freehold Land, or other arrangements are in place and are exercised.

OCCUPIER means a person, persons, organisation, or business entity that is using a rating unit or portion of a rating unit under a lease, license or other formal agreement for a specified period of time.

OUTSTANDING NATURAL LANDSCAPE refers to any largely unmodified landscape with characteristics and qualities that amount to being conspicuous, eminent or remarkable. These landscapes are afforded protection through the Resource Management Act 1991 as a matter of national importance.

PAPAKĀINGA has the same meaning as in the operative version of the Far North District Plan.

POSTPONEMENT means an agreed delay in the payment of rates for a certain time, or until certain defined events occur.

RATEPAYER includes, under the Local Government (Rating) Act 2002, either the owner of the rating unit or a lessee under a registered lease of not less than 10 years, which provides that the lessee is required to be entered into the Rating Information Database as the ratepayer.

REASONABLE ACCESS has the same meaning as the Property Law Act 2007.

REMISSION means that the requirement to pay the rate levied for a particular financial year is forgiven in whole or in part.

STATUTORY LAND CHARGE means a charge registered against a Certificate of Title of a property by someone who has a financial interest in the property, such as debt or part ownership.

TREATY SETTLEMENT LANDS means any land which has been returned to Māori ownership in a Treaty Claims Settlement, or land which may have been purchased from Treaty settlement monies to replace land which could not be returned because it is in private ownership.

UNIFORM ANNUAL GENERAL CHARGE (UAGC) is a type of rate levied by Council. It is a fixed charge, or an amount that stays the same regardless of the value of the property. The UAGC is the same amount for all ratepayers across the District.

USED includes use for the purposes of any residential occupation of the land, or any activity for business or commercial purposes, including lease agreements, or storage of equipment, stock or livestock.

 


Common-Use Properties

Background

Section 20 of the LGRA 02 requires that multiple rating units be treated as one rating unit if they are:

1.   Owned by the same person or persons; and,

2.   Used jointly as a single unit; and,

3.   Contiguous or separated only by a road, railway, drain, water race, river or stream.

This policy expands on the provisions of the Act, and provides for commercial operations to be treated as one rating unit to assist economic development in the district.


Policy Objectives

1.    To provide for farming by treating multiple rating units as one rating unit if they are physically separated but used jointly as one farming operation. 

2.    To assist development in the District by treating multiple rating units of a development as a single rating unit for a maximum of three years.

Scope

This policy applies to both General Title and Māori Freehold Land.

 

Policy Statements

In addition to the provisions of section 20 of the LGRA 02, Council will treat the following separate rating units as a single rating unit if they are owned by the same person or entity:

a.   A farm that consists of multiple rating units but functions as one commercial operation;

b.   Rating units of a residential or commercial development which are vacant and owned by the original developer, pending their sale or lease to subsequent purchasers or lessees.

 

Conditions and Criteria

1.    Applicants must provide sufficient evidence that the multiple rating units in question are being jointly used as a single farming operation, or are part of the same subdivision or commercial development.

2.    In the case of a residential or commercial development, multiple rating units will be treated as a single rating unit for a maximum term of three years. This term is calculated from 1 July in the year that this provision first applies.

3.    Residential or commercial developments that have already received this remission under a previous policy are not eligible for remission under this policy.

4.    In the case of a farm or commercial enterprise, the separate multiple rating units must be owned or leased by the same person or entity. If any of the separate rating units are leased, the term of the lease must be 10 years or more, including rights of renewal. The owners of each of the separate rating units must confirm in writing that their unit is being jointly used as a single farming operation.

5.    In the case of residential rating units where two or more separately owned rating units are  owned by an individual and/or trust and are contiguous but the ownership is not an exact match, the rating units will be considered as one. For this to apply one unit must have a dwelling and the other unit(s) considerable development which proves that the rating units are being used as one.  E.g. House/dwelling on one rating unit and or garden and garage on the other rating unit.

6.    In the case of a farm, the rating units must be situated within a radius of two kilometres from the boundary of the primary property.

7.    Council reserves the right to exclude any specific targeted charge from this policy.


8.   

Community, Sports and Not-for-profit Organisations

Background

Community and voluntary groups provide facilities to enhance and contribute to the wellbeing of the residents of the Far North. This policy provides rating relief for those organisations that operate for the benefit of the community.

 


Policy Objectives

1.    To assist in the ongoing provision of community services and recreational opportunities that benefit Far North residents.

2.    To facilitate and support access to drug, alcohol and mental health facilities for Far North residents.

Scope

This policy applies to both General Title and Māori Freehold Land.

Policy Statements

1.    Council may remit up to 100% of the rates payable on land owned or used by:

a.     Registered Charitable Organisations or IRD approved donee organisations; or

b.    Any entity which has, as its principal purpose and function, the provision of free access to family counselling, or, assessment, counselling and in-patient treatment for people with alcohol, drug and mental health related problems.

2.    Council may remit 50% of the rates payable on land owned or used by an entity for the purpose of providing benefit to Far North residents through:

a.     the promotion of recreation, health, education, or instruction; or

b.    the running of a campground on land for the purposes listed in section 2(a) above.

3.    Council may remit service charges, which may be sewerage only or any or all service charges at the sole discretion of Council.

Conditions and Criteria

1.    Relevant financial information must accompany all applications. This includes:

a.     statement of organisation objectives

b.    full financial accounts

c.     information on activities and programmes

d.    details of membership or clients.

2.    No remission will be given on land on which a licence under the Sale of Liquor Act is held.

3.    No remission will be given on land where any person or entity receives private financial profit from the activities carried out on the land. All income earned by ratepayers and entities receiving a remission under this policy must be spent on reasonable salaries, wages and other costs reasonably related to its community, sports, or not-for-profit purposes.

4.    Land used for an activity which is commercial in nature does not qualify for rates remission. For example an “op-shop” does not qualify for rating relief under this policy.


5.   

Excess Water Charges

Background

Individual consumers are responsible for:

a.   the maintenance of their own internal reticulation system from the water meter to the house; and

b.   payment for all water supplied through the meter.

Some consumers may experience an occasional water leak in their internal reticulation, and not be aware of the problem. This policy seeks to assist the ratepayer to cover excess water charges. 


Policy Objectives

1.    To assist ratepayers with excessive water charges due to a water leak.

2.    To incentivise ratepayers to regularly check their water meter and maintain their internal water reticulation.

Scope

This policy applies to both General Title and Māori Freehold Land.

Policy Statements

1.    Council may provide a full remission of excess water charges to the ratepayer once every 10 years where a leak in the internal reticulation of that property has resulted in water loss.

2.    Council may provide a 50% remission of excess water charges to the ratepayer in the case of a separate leak on that property within 10 years following the grant of a first application.

Conditions and Criteria

1.    Applications made under this policy must be received by Council within six months of the first notification to the ratepayer by Council of a possible leak.

2.    Proof of repairs to the internal reticulation must accompany the application. This may be in the form of a detailed written report or an invoice for repairs from a registered plumber.

3.    No remission will be given where the repairs have not been completed by a registered plumber.

4.    Excess water charges resulting from any other leaks within the 10 year period are not eligible for remission.

5.    The maximum relief that will be provided will be the difference between the normal consumption and the actual water consumption for that period.



 

Incentivising Māori Economic Development

Background

Council recognises that there is a need to incentivise economic development on Māori Freehold Land. Enabling and incentivising Māori economic development through the remission of rates may see direct economic and social benefits to landowners generating a return on the land, as well as to Council from future rates contributions, as the venture grows and becomes sustainable.


Policy Objectives

1.    To provide incentives for Māori land owners to develop Māori Freehold Land for economic use.

2.    To enable owners to develop an economic base and to assist with the subsequent payment of rates.

Scope

This policy applies to Māori Freehold Land.

Policy Statement

Council will remit rates on Māori Freehold Land for the purposes of incentivising economic development.

Conditions and Criteria

1.    Council will remit rates under this policy on an eight-year sliding scale as follows:

•      Years 1-3 - 100% remitted

•      Year 4 - 90% remitted

•      Year 5 - 80% remitted

•      Year 6 - 60% remitted

•      Year 7 - 40% remitted

•      Year 8 - 20% remitted; and

•      Year 9 - 0% remitted

2.    The land, or portion of the land, for which relief is sought must be considered suitable for development, and confirmed as currently not used.

3.    Applications must be accompanied by a business case, and a meeting with Council staff will be required to determine any other necessary documentation.

4.    Key considerations by Council may include:

a.     professional advice has been obtained;

b.    there is a suitable management structure in place;

c.     appropriate financial arrangements for the development of the land have been made;

d.    suitable monitoring and reporting systems have or will be established; and

e.     realistic financial projections and cash flows have been provided.

5.    Upon approval, a regular annual report and financial statements on the development must be submitted to Council each year.


 


Landlocked Land

Background

The Property Law Act 2007 enables owners of landlocked properties to take legal action in order to gain reasonable access to their property. Ratepayers may be unable to take action under these provisions of the Property Law Act due to their financial circumstances.


Policy Objectives

To provide rating relief to ratepayers where their land has no reasonable access and the ratepayer cannot afford to take action through the Property Law Act 2007.

Scope

This policy applies to both General Title and Māori Freehold Land.

Policy Statement

Council may postpone rates on landlocked land where there is no reasonable access as defined in the Property Law Act 2007, or, in the case of Maori Freehold Land, as determined by the Maori Land Court

Conditions and Criteria

1.    The land must be landlocked as defined in Section 326 of the Property Law Act 2007, or, in the case of Maori Freehold Land, as determined by the Maori Land Court

2.    The application must state why access cannot be obtained through procedures set forth in Part 6, Subpart 3, of the Property Law Act.

3.    The application must include a statutory declaration that there is no practical access across adjoining land and that the land is not in use by any person, Fencing to prevent trespassing does not constitute use of the land.

4.    The maximum term for the postponement of rates for landlocked property is three years. If the land remains landlocked at the end of that period, postponed rates will be remitted.

5.    The owner must advise Council if the status of the land changes, if access is obtained, or if any person commences to use the land. If the land ceases to be landlocked during the period of the postponement, any rates postponed and not remitted under this policy will not be repayable unless the owner fails to keep the current and future rates up to date.

6.    The repayment of postponed rates will not be required merely because of a change of ownership of the land, provided that the land continues to comply with the criteria of this policy.

1.   


7.   

Land Subject to Protection for Outstanding Natural Landscape, Cultural, Historic or Ecological Purposes

Background

The Far North District Council recognises that certain rateable land within the District is protected for outstanding natural landscape, cultural, heritage, or ecological purposes.


Policy Objectives

To provide rating relief to landowners who have reserved lands that have particular outstanding natural landscape, cultural, historic or ecological values for future generations.

Scope

This policy applies to both General Title and Māori Freehold Land.

Policy Statements

1.    Council may remit rates on land subject to protection for outstanding natural landscape, cultural, historic or ecological purposes under the formal protection agreements listed in 2 a) through 2 g) of the conditions and criteria of this policy.

2.    Council may postpone rates on land subject to protection for outstanding natural landscape, cultural, historic or ecological purposes under the formal protection listed in 2 h) of the conditions and criteria of this policy.

Conditions and Criteria

1.    Applications must be supported by a copy of the formal protection agreement and a Management Plan detailing how the values of the land are to be maintained, restored, and/or enhanced.

2.    The land must be subject to a formal protection agreement as set out below:

a.     An open space covenant under section 22 of the Queen Elizabeth the Second National Trust Act 1977; or

b.    A conservation covenant under section 77 of the Reserves Act 1977; or

c.     A Nga Whenua Rahui kawenata under section 77A of the Reserves Act 1977; or

d.    A declaration of protected private land under section 76 of the Reserves Act 1977; or

e.     A management agreement for conservation purposes under section 38 of the Reserves Act 1977; or

f.     A management agreement for conservation purposes under section 29 of the Conservation Act 1987; or

g.    A Māori reservation for natural, historic, or cultural conservation purposes under sections 338 to 341 of the Te Ture Whenua Māori Act 1993 (Māori Land Act 1993); or

h.     A covenant for conservation purposes under section 27 of the Conservation Act 1987.

i.      A covenant for conservation purposes approved under the Heritage New Zealand Pouhere Taonga Act 2014 (or Historic Places Act 1993)

3.    The rating unit or portion of the rating unit that is the subject of the application must not be in use.

4.    Where the entire rating unit is the subject of the application, the remission or postponement of rates will apply to all rates levied on the property. 

5.    The protected and unprotected portions of the rating unit will be separately valued and assessed as separate parts pursuant to Section 45 (3) of the Local Government (Rating) Act 2002. In these instances, the remission or postponement of rates will only apply to the protected portion of the rating unit.

6.    The following activities will not constitute use of the land:

a.     Work undertaken to preserve or enhance the features covenanted on the land, including but not limited to weed control, planting to counteract erosion, or erection of a fence to prevent trespassing.

b.    The removal of material by Māori for cultural purposes.

7.    Any remission or postponement granted under this policy will become effective on 1 July in the rating year following the submission of the application.

8.    Any remission or postponement of rates on the land will be cancelled immediately in the event that the land ceases to be protected under a formal protection agreement. Postponed rates that have not been remitted will be repayable in the event that the covenant conditions and the Management Plan objectives are breached in the sole opinion of the Council, whose decision is final.

 

 

 

 

Specific Conditions and Criteria for Postponement of Rates

1.    After a term of six years, the postponed rates for the first year of the covenant period will be remitted. After this, one additional year of the postponed rates will be remitted each year, so that a maximum of six years of postponed rates are held against the land at any given time.

2.    Upon expiration of the covenant or other agreement, any rates that are postponed against the land at that time, which have not been remitted under paragraph 9 above, will become due.

3.    The repayment of postponed rates will not be required as a result of a change of ownership, provided that the land continues to comply with all criteria.

4.    Council will not seek repayment of postponed rates where future postponement is revoked due to Council changing its criteria for postponement.



 

Māori Freehold Land Not Used

Background

The Far North District Council recognises the unique barriers to the use and development of Māori Freehold Land resulting from fragmented ownership. While Māori Freehold Land itself may not be difficult to use or develop, there may be challenges around the use and the financing of the development of the land which arise from fragmented ownership.

This policy provides relief by giving a remission where land is not used due to the difficulty of multiple ownership, obtaining collective agreement, or the lack of financing options. This policy does not apply to Māori Freehold Land in sole ownership.  


Policy Objectives

1.    To provide for rates remission for Māori Freehold Land under multiple ownership or portions thereof which are not used.

2.    To avoid further alienation of Māori Freehold Land as a result of financial pressures that may be brought by the imposition of rates on lands not used.

Scope

This policy applies only to Māori Freehold Land.

Policy Statement

Council may, upon application from the owners, authorised agents of the owners, or Council itself acting for the owners, agree to remit the rates on such unused land for a period not exceeding three years.

Conditions and Criteria

1.    The land must be in multiple ownership. Land in sole-ownership is not eligible for rating relief under this policy.

2.    The land must not be used by any person or entity.

3.    If the land comes under use at any point, it will no longer receive remission of rates under this policy.

4.    Council expects that any rating relief will be temporary, with each application limited to a term of three years. Council may consider renewing the rating relief upon the receipt of further applications from the owners.


5.   

New Users of Māori Freehold Land

Background

The Far North District Council recognises that significant rate arrears due to the challenges of multiple ownership can act as a disincentive to any new use of Māori Freehold Land where a New User could become responsible for the payment of any existing arrears of rates and penalties on the land. This policy has been developed to encourage use of Māori Freehold Land in these circumstances.


Policy Objective

To remove the barrier of rate debt for New Users to be able to use or develop the land.

Scope

This policy applies only to Māori Freehold Land.

Policy Statement

Council may postpone the arrears of rates on Māori Freehold Land subject to the land being continuously used by a New User and that person agreeing to pay the rates while they are using the land.

 

 

 

 

 

 

Conditions and criteria

1.    The person proposing to use the land must be a New User.

2.    Where land has recently moved from multiple ownership to sole ownership, the sole owner will be treated as a New User.

3.    Council has the sole discretion as to whether or not to grant the application, and may seek additional information before making its final decision.

4.    The New User using the land must, upon approval of the application, keep the current and future rates up to date for as long as they continue to use the land.

5.    If the current and future rates are not paid within one month of the due dates, Council reserves the right to reapply the postponed rates to the land.

6.    Postponed rates will remain as a charge on the property for a period of six years from the date on which the rate was assessed, after which time they will be remitted.



 

Papakāinga on Māori Freehold Land

Background

The Far North District Council recognises the importance of Māori Freehold Land in providing landowners and their whanau with the opportunity to establish papakāinga. The imposition of multiple Uniform Annual General Charges or other non-service related charges may act as a disincentive to occupying Māori Freehold Land for papakāinga purposes.

The policy creates apportionments on land which is subject to a license to occupy or has an informal arrangement in place. This means that each occupier will pay rates only upon the land they occupy, rather than upon the entire area of the rating unit.


Policy Objectives

1.    To put in place processes to allow the residents with occupation licenses or other informal arrangements to pay their portion of rates in respect of the land that they occupy.

2.    To assist Māori to establish papakāinga or other housing on Māori Freehold Land.

3.    To assist Māori to establish an economic base for future development.

Scope

This policy applies only to Māori Freehold Land.

Policy Statement

Council may remit multiple UAGCs, as well as other charges, for separately used or inhabited parts of a rating unit which are subject to a licence to occupy or other informal arrangement.

 

 

 

 

Conditions and Criteria

1.    The part of the land concerned must be the subject of a licence to occupy or other informal arrangement for the purposes of providing residential housing for the occupier.

2.    The area of land covered by each arrangement must have a separate valuation issued by Council’s valuation service providers and will be issued with a separate rate assessment pursuant to Local Government (Rating) Act 2002 Section 45 (3).

3.    The occupier must agree to pay any rates assessed in respect of the part or division of the rating unit that is the subject of the application.

4.    No portion of the service charges for utilities will be remitted.

5.    Council reserves the right to cancel the remission on the portion of a rating unit upon which rates remain unpaid for a period of more than one month after the due date.

6.    Uniform Annual General Charges and other charges on the land will remain in remission so long as the occupation continues to comply with the conditions and criteria of this policy.



 

Penalties

Background

Penalties are charged where rates instalments are not paid by the due date.  Council recognises the economic hardship faced by some ratepayers. This policy provides for the remission of rates penalties on the grounds of financial hardship.


Policy Objective

To allow for the remission of penalties where the ratepayer has entered into repayment arrangements or there are reasonable grounds to remove the penalty.

Scope

This policy applies to both General Title and Māori Freehold Land.

Policy Statement

Council may remit rates penalties where the application provides a reasonable reason for remission.

 

 

 

Conditions and Criteria

1.    Applications will be considered if:

a.     The applicant has a previous good record of payment and on-time payments of all rate instalments within the last two years, and an honest attempt has been made to have payment delivered on time; or

b.    The owner of the rating unit has been given insufficient notice of the invoice due date; or

c.     A request is made on compassionate grounds; or

d.    The ratepayer has entered into a Rates Easy Pay agreement and has maintained the arrangement to clear their outstanding rates.

2.    Penalties may be remitted upon payment of all outstanding rates.



 

Properties Spanning Multiple Districts

Background

There are a small number of properties situated across the boundary line between the Far North District and other districts. These properties incur rates from both councils. This policy provides an equitable method of assessing rates for those properties.


Policy Objective

To recognise that some properties span multiple districts, and to ensure that only the portion of property within the Far North District is rated by the Far North District Council.

Scope

This policy applies to both General Title and Māori Freehold Land.

 

 

Policy Statement

Rates will be remitted on any portion of a property outside of the Far North District.

Conditions and Criteria

If there is a dwelling on the portion of the property within the Far North District:

•      no portion of the Uniform Annual General Charge will be remitted; and

•      the land value based rate will continue to be remitted on the portion outside of the Far North District.



 

Residential Rates for Senior Citizens

Background

The payment of rates for senior citizens on a limited income can affect their quality of life. This policy provides senior citizens with the option of postponing their rates to be paid until a sale of the rating unit takes place, or, in the event that they pass away, until the settlement of their estate. This will relieve elderly people of potential financial hardship, and enhance the quality of their lives, including the ability to remain in their home longer with limited income.


Policy Objective

To positively contribute to the quality of life for senior citizens by postponing rates payable.


Scope

This policy applies to General Title Land. Council does not consider the application of this policy appropriate for Māori Freehold Land; because of the nature of Māori Freehold Land, Council does not consider it appropriate to charge postponed rates to the land. Landowners of Māori Freehold Land are eligible for remission of rates under the Extreme Financial Hardship Policy.

Policy Statements

Council may postpone rates for ratepayers whose primary income is the New Zealand Superannuation Scheme. Any postponed rates will be postponed until:

a.     The settlement of the ratepayer’s estate following their death; or

b.    The ratepayer ceases to be the owner or occupier of the rating unit; or

c.     The ratepayer ceases to use the property as their primary residence; or

d.    The accrued charges exceed 80% of the rateable value of the property (postponed rates will remain due for payment only on death, sale, or the date specified by Council); or

e.     A date specified by the Council.

Conditions and Criteria

1.    Postponement under this policy will only apply to ratepayers who are:

a.     eligible to receive the New Zealand Superannuation Scheme, which is, or will be, their primary income; or

b.    on a fixed income. This is defined as “an income from a pension or investment that is set at a particular figure and does not vary like a dividend or rise with the rate of inflation”

2.    The rating unit must be used by the ratepayer as their primary residence. This includes, in the case of a family trust owned property, use by a named individual or couple.

3.    The ratepayer must not own any property that may be used:

a.     as a holiday home or rental property; or 

b.    for commercial activities, such as farming or business.

4.    Council must be satisfied that the ratepayer is unlikely to have sufficient funds left over, after payment of rates, for normal day to day living expenses, normal health care, and maintenance of the home and chattels to an adequate and reasonably healthy standard. If the applicant qualified for the Rates Rebate then their income had already been tested and they therefore qualify for the Rates Postponement Council reserves the right to request any information around the ratepayer’s personal circumstances that it deems necessary to make a decision.

5.    People occupying a unit in a retirement village under a licence to occupy must have the agreement of the owner of the retirement village before applying for postponement of the rates payable on their unit.

4.   


6.    If a property is still under a mortgage, a written and signed approval must be obtained from the Mortgagee as part of the application. This is because the payment of postponed rates will have priority over mortgage payments.

7.    Properties that are the subject of a reverse mortgage are not eligible for rating relief under this policy.

8.    Council has the right to decline rates postponement for a property that is in a known hazard zone. This is to minimise any risk of loss to Council.

9.    Postponed rates will be registered as a statutory land charge on the rating unit title, meaning that Council will have first claim on the proceeds of any revenue from the sale or lease of the rating unit.

10.   If rates are postponed, the ratepayer will still be responsible for the amount of rates equal to the maximum rebate available under the central government Rates Rebate Scheme for the current rating year. Council is able to assist applicants for the Rates Rebate Scheme. If the ratepayer is not eligible for a rates rebate, they will still be responsible for paying this amount, and will be required to enter into a payment arrangement to cover this portion.

11.   Council will charge an annual administrative fee on postponed rates.

12.   The postponed rates or any part thereof may be paid to Council at any time.

13.   The property must be insured at the time the application is granted and must be kept insured. Evidence of this must be produced annually.

14.   Senior citizens for whom rates are being postponed under this policy must promptly inform Council of any substantial change in their financial status which might affect their eligibility for such postponement.

15.   For senior citizens who have had rates postponed under this policy but are no longer eligible for the postponement, those rates will remain postponed, and new rates will be charged accordingly


 



 

School Sewerage Charges

Background

The Council recognises that schools may be disproportionately charged for sewerage services where there are a higher number of toilets in relation to the actual number of students enrolled in schools. This policy ensures that schools are equitably charged for sewerage services.


Policy Objective

To ensure equitable rating of educational establishments by providing relief for sewerage charges.

Scope

This policy applies to both General Title and Māori Freehold Land.

Policy Statements

Where the nominal number of pans is less than the actual number of pans, sewage charges will be remitted on those pans that make up the difference between the two.

 

 

 

 

Conditions and Criteria

1.    This policy applies to those educational establishments specified in Schedule 1, clause 6 of the Local Government (Rating) Act 2002.

2.    The nominal pan number will be calculated as one pan per 20 students/staff members or part thereof.

3.    This policy does not apply to residential dwellings on school property.

4.    The number of students in an educational establishment is the number of students on its roll on 1 March of the year immediately before the year to which the charge relates.

5.    The number of staff in an educational establishment is the number of full time teaching equivalent (FTTE) staff and full time equivalent (FTE) administration staff employed by that educational establishment on 1 March of the year immediately preceding the year to which the charge relates.

1.  


1.  

Treaty Settlement Lands

Background

Council recognises that post-settlement governance entities (PSGEs), which are formed to receive properties returned as a part of Treaty of Waitangi settlements, will require time to develop strategic plans, restore protections, and complete necessary works for cultural and commercial redress properties. These properties can be classed as General Title, which means that the rating relief policies for Māori Freehold Land do not apply to all of these properties. This policy has been developed in recognition of these circumstances.


Policy Objective

To recognise that lands acquired as part of a Treaty settlement process may have particular conditions or other circumstances which make it appropriate to remit rates.

Scope

This policy applies only to Treaty Settlement Lands and will retrospectively apply to any settlements prior to 1 July 2018

Policy Statement

Council will agree to remit rates on Treaty Settlement Lands subject to the criteria set out below.

Conditions and Criteria

1.    Before remission of rates may come into effect, Council must receive an appropriate and satisfactory application supported by sufficient documentation. Any remission granted will come into effect as of the date of that application.

2.    The applicant must provide proof that the land which is the subject of the application is Treaty Settlement Land.

3.    Returned lands that were non-rateable under the previous ownership will receive a full rates remission for a period of three years.

4.    Where returned lands are commercial redress properties and are not used, Council will grant a 50% remission for a period three years. 

5.    Where the returned lands are commercial redress properties and meet the criteria as outlined in the Incentivising Māori Economic Development Policy, Council will remit rates on an eight-year sliding scale as follows:

•      Years 1-3 - 100% remitted

•      Year 4 - 90% remitted

•      Year 5 - 80% remitted

•      Year 6 - 60% remitted

•      Year 7 - 40% remitted

•      Year 8 - 20% remitted; and

•      Year 9 - 0% remitted



 

Unusable Land

Background

Natural disasters can cause land to become unusable for a long period of time. This policy addresses the issue of land that had been made unusable by a natural disaster.


Policy Objective

To provide rating relief to the owners of properties that have become unusable as a result of a natural disaster, and where the loss of the use of the property will result in financial hardship to the owner.

Scope

This policy applies to both General Title and Māori Freehold Land.

Policy Statement

Council may grant a remission of rates on land that has become indefinitely unusable as a result of a natural disaster.

Conditions and Criteria

1.    The applicant must set out in detail the nature of the natural disaster that has caused the land to be unusable.

2.    The application must outline the steps that the owner has taken, or will take, to return the land to a usable state. If this is not possible, the application must state why.

3.    The application must be supported by a geotechnical report from a registered engineer setting out the reasons why the land has become, and will remain, unusable.

4.    The applicant will be required to sign an agreement that any remission will be cancelled immediately if the land is returned to a usable state.



 

Wastewater Charges on Government Funded Subsidy Schemes

Background

From time to time, Central Government establishes funds to assist the development of wastewater schemes in communities that might not otherwise be able to afford it. The Government subsidy assists in the capital costs of a scheme. This policy ensures that the benefit of the Government subsidy is passed on to ratepayers in those communities that are of greatest need.


Policy Objectives

1.    To comply with the requirements of Government Funded Subsidy Schemes.

2.    To ensure that ratepayers in those communities of greatest need receive a benefit from the subsidy in the form of reduced charges.

Scope

This policy applies to both General Title and Māori Freehold Land.

Policy Statement

The Far North District Council will provide a remission for the capital portion of the wastewater charge for new schemes funded by Government Subsidy where the deprivation index of that community is seven or higher.

Conditions and Criteria

1.    Where the policy applies, Council will automatically grant the remission to the rate accounts that qualify.

2.    The remission will only apply to the capital portion of each year’s rate and is only available to existing properties and their owners at the time that the relevant wastewater scheme became operational.

3.    The remission will terminate 10 years after the date at which the sewerage scheme became operational.

4.    Where a qualifying property is subdivided, any new rating units that are created over and above the original single rating unit will not be eligible for this remission.


 


 

Proposed Policies for Revocation

Background

Section 109 of the LGA 02 provides for a remission or postponement policy to be revoked. The following policies have been reviewed and are proposed to be revoked for the reasons outlined below.

Remissions of Additional Penalties

This policy provides for ratepayers to apply for a remission of additional penalties where they have entered into a Rates Easy Pay agreement to pay outstanding arrears over an agreed period of time.

Rationale for revocation

On 5 June 2015 Council resolved to cease charging and remit all additional penalties outstanding on rate accounts prior to 30 June 2015. The Remission of Additional Penalties policy is now redundant.

Remission of Postponed Rates

This policy directs Council to remit postponed rates that have reached the predetermined age or term as provided for in the rates postponement policies.

Rationale for revocation

This policy is no longer required because each postponement policy now, where appropriate, contains a condition that once postponed rates reach the maximum term, they will be remitted.

Remission of Rates on Land that has made Lump Sum Contributions

Prior to Local Government reorganisation in 1989, a number of sewerage schemes were established or enhanced using loans. In certain cases, the ratepayers were offered the opportunity to make a lump sum contribution rather than paying an annual loan rate. This policy provides a remission for ratepayers that have already made lump sum contributions to the cost of these loans.

Rationale for revocation

Council does not have any claims for remissions under this policy and there are no lump sum contribution schemes. If there was future provision for lump sum contributions, Council automatically applies a remission.

Transitional policy for the Postponement of Rates on Farmland

The Rating Valuations Act used to provide rating relief to farm owners with high rates because of the potential to develop the land. This Act was repealed and Council introduced this policy to continue rates relief for farms in proximity to high valued urban or coastal areas and to reduce the incidence of coastal development.

Rationale for revocation

This policy does not provide for any new applications to be made to Council. Eleven properties are currently subject to this policy and have existing agreements with Council. Therefore this policy is no longer required. Agreements will cease if the land is developed or sold.

This policy is to be re-instated to ensure that the 11 properties to which it applies continue to receive the postponement.


Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

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Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

5.2         Level of Service Quarter 2 Performance Report

File Number:           A2393244

Author:                    Kaela Allison, Systems & Project Accountant

Authoriser:             Sheryl Gavin, General Manager Corporate Services (Acting)

 

Purpose of the Report

The purpose of this report is to present the Level of Service KPI Performance Report for Committee’s consideration.

Recommendation

That the Audit, Risk, and Finance Committee receive the report “Level of Service Quarter 2 Performance Report”.

 

 

Background

An overview of staffing and financial data is included to give an overall picture of the activity groups and what factors may have an influence upon performance.

Discussion and Next Steps

This report is for information only.

Financial Implications and Budgetary Provision

There are no financial implications or budgetary provision needed as a result of this report.

Attachments

1.       LOS KPI Quarterly Performance Report_Q2 - A2393237  

 


Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

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Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

5.3         Long Term Asset Funding Update

File Number:           A2395588

Author:                    Janice Smith, Chief Financial Officer

Authoriser:             Sheryl Gavin, General Manager Corporate Services (Acting)

 

Purpose of the Report

This report provides an update on the programme of work being undertaken on the Long Term Asset Funding project.

Executive Summary

In November, a presentation was given to a workshop following the Audit, Risk & Finance Committee on the Long Term Asset Funding project.

Since that update, work has continued as scheduled and this report is to update the committee on where the project is in relation to the timeline provided in the presentation.

 

Recommendation

That the Audit, Risk, and Finance Committee receive the report Long Term Asset Funding Update.

 

Background

The timeline for the Long Term Asset Funding project that was included in the presentation in November was as follows:

Discussion and Next Steps

Work on the District Facilities information has now been completed. A small working team has been established in the Financial Services team which will now take the information completed so far and move into the modelling phase of the project.

In December, a telephone conference call was held with Paul Crimp of the South Waiarapa District Council (SWDC) as he had instigated a similar process at that council. The conversation was very useful and highlighted the fact that the project did not need to be a “one size fits all” solution. At SWDC they only apply the renewals modelling to the 3 water accounts. For the District Facility type assets, they have a range of renewal policies that determine the percentage of the asset that will have funded depreciation and this varies according to the asset and future renewal expectations. A copy of the feedback is attached for information.

Part of the work of the finance team assigned to LTAF is to contact other council’s that we know follow the same principles and make enquiries concerning how they determine what assets attract what action and this will be fed into the review process.

At this point, there are no variations to the timeline that was identified

Financial Implications and Budgetary Provision

There are no financial implications

Attachments

1.       South Waiarapa District Council feedback - A2395577  

 


Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

Briefing note for LTAF group.

Background

Paul Crimp, CEO of Wairarapa District Council, was approached by Mayor Carter to discuss depreciation and asset funding. A telephone call was arranged for the 20th December 2018 for the CEO and the CFO to talk to Paul..

Depreciation –v- renewal

Paul advised that it took the Council 8 years to land on the position it has now implemented in the 2018-28 LTP.

It was felt there was a clear disconnect between depreciation and what the Council was spending on renewals.

SWDC focused on water and wastewater only. Wellington Water (WW) completed work on asset condition and this was paid for from depreciation reserves. It wasn’t a huge amount and was at a negotiated rate. SWDC also made it a condition of all maintenance work to have a CCTV review done every time. This adds to the condition information over time.

The data that WW provided showed that they could smooth renewals over time to achieve the work that they felt would be needed and this released rate dollars to fund other work.

Using WW for the data analysis gave the auditors comfort that the values could be relied upon in relation to network status.

What if the assumptions are wrong?

It will be necessary to find a balance as networks change all the time. SWDC took a view that the data was probably 80% right. If they needed to work on something that wasn’t planned then the view was that it would have needed to be done at some point so it isn’t “a mistake” just a timing difference.

Rating for the waters

SWDC rate district wide for the 3 waters. One of the old schemes now needs work and the view taken is that every scheme will require work over time so they will all receive appropriate investment over time. SWDC created a 3 waters reserve to allow funds to be moved around but this works for them as their water, wastewater and stormwater ratepayers are more or less the same group of customers.

Other points

SWDC identified unit rates for roading but decided not to pursue this.

Depreciation reserves are not cash backed.

SWDC started the process slowly by “unfunding” 20% of the depreciation for water and wastewater and diverting the funds to other projects.

They do not apply this model to Community type assets but they do have a model of partially funding deprecation on these assets dependant on the asset type. Some are run to failure and not depreciated, others are fully depreciated and some fall between these points.

 


Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

5.4         Revenue Recovery Report

File Number:           A2395747

Author:                    Margriet Veenstra, Manager - Transaction Services

Authoriser:             Sheryl Gavin, General Manager Corporate Services (Acting)

 

Purpose of the Report

The purpose of this report is to provide quarterly reporting of revenue recovery to the Audit, Risk, and Finance Committee.

Executive Summary

This is the second report for the 2018/19 financial year providing information on action taken to collect current and arrears balances for rates, water and sundry debt, and to provide information on how collection is tracking against targets.

Recommendation

That the Audit, Risk, and Finance Committee receive the report “Revenue Recovery Report”.

 

Background

This document has been prepared to outline current and arrears balances for rates, water and sundry debt as at 3 January 2019 and the actions taken by the Debt Management Team for the collection of the General Title rates and water and sundry debt.

This information is part of the standing items reported to the Committee on a regular basis.

Discussion and Next Steps

The information has been identified for General Title rate and water accounts as well as Maori Freehold Land rates and water accounts. Sundry debtors, which are other fee generating areas of council, are shown in a separate table.

A Statute Barred Write-off process was completed in August 2018, and this totalled $953,641.17 for General Title rates and $6,130,978.94 for MFL rates.

Taking into account the Statute Barred Write-Off, the General Title 2016+ rates arrears balance has been reduced by $604,167 since June 2018 and the 2016+ water arrears have been reduced by $98,281. For MFL the 2014+ rates arrears have reduced by $689,700 and the 2014+ water arrears have been reduced by $15,506.

Below are the actions and focus areas for the third quarter, by the Debt Management Team for the collection of the General Title rates and water and Sundry Debt.

 

·    Urgent Demand process commenced in September 2018.

Focus on 180 highest arrears General Title properties without a mortgage. Three letters were created to support the process: Urgent Demand, Final Urgent Demand and Legal proceedings to commence.

Audit of all accounts has been completed

§ 75% of customers have received both urgent demand letters, of which 85% are due to move to legal proceedings.

§ 3% of customers paid their arrears in full

§ 11% are now on a payment plan.

§ 12% are either deceased rate payers or abandoned land

§ 10% of customers require further investigation

External legal provider recommendation as to approach for subsequent legal proceedings.

Next steps: Analysis of all accounts currently classified as abandoned land and deceased rate payer to confirm status and identify a select number of properties to commence court proceedings through external legal provider.

·    A review commenced in November of all accounts referred to the external collection agency with the view of taking back all accounts to Councils Debt Management Team. As a result:

47% of accounts have been taken back to Council

Of those taken back, 47% have received first and/or second letters as part of the Urgent Demand process.

37% have either returned mail and/or need further investigation.

6% accounts are now paid and/or have a payment plan in place.

10% are abandoned land or deceased rate payer.

·    Audit is taking place of all fixed Direct Debits currently in place with Council. So far, 80% of customers have now been switched to variable Direct Debit or have a new fixed Direct Debit within minimum Rates Easy Pay requirement.

·    Continuous audit of existing Arrangements to Pay to ensure the agreements are being met. Contacting the customer where this is not the case and either reschedule the agreement or cancel and move to next recovery step.

·    A review of all procedures is being undertaken as part of the Continuous Improvement initiative to ensure adequate monitoring and actions are proceeding in a timely manner.

·    The ongoing promotion of the Internal Affairs Rates Rebates Scheme in day to day communications with Ratepayers and regular meetings with relevant community organisations is another key focus.

 

Additional focus areas quarter three:

·    Sundry Debtors review

Small Bad Debt and Credit Write-off journals preparation and approval

Initial contact with all customers by email, mail and/or telephone

Facilitation of issue resolution with other council departments to ensure debt is cleared.

Review of processes.

Process change for licence renewals.

 

Financial Implications and Budgetary Provision

Provision is made annually for doubtful debts in relation to the arrears owed to council. A higher provision for Maori Freehold land rates and water is made in comparison to General Title rates and water due to the difference in collection options available to Council.

Attachments

1.       ARF Revenue Recovery Report - 28 March 2019 - A2396777  

 


Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

Statute Barred Write-Off 2019

 

General rate and water rates analysis by age at 3 January 2019.

 

 

 


 

Maori Freehold Land rate and water by age at 03 January 2019.

 

 


 

Sundry Debtors by age for 30 June 2018

 

 

Since June 2018 90+ days debt has been reduced by $127,206 and the overall aged debt has been reduced by $2,171,163, mainly drive by Sundry Debtors.

 

Reason for the recommendation

This report is for information only.

 


 

Compliance schedule:

Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular:

1.   A Local authority must, in the course of the decision-making process,

a)   Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and

b)   Assess the options in terms of their advantages and disadvantages; and

c)   If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga.

2.   This section is subject to Section 79 - Compliance with procedures in relation to decisions.

                                                      

Relationship with existing policies and Community outcomes.

Remission polices apply to qualifying ratepayers

Possible implications for the relationship of Māori and their culture and traditions with their ancestral land, water, site, waahi tapu, valued flora and fauna, and other taonga.

Remission of rates is available to qualifying ratepayers under the various remission and postponement policies adopted by Council

Views or preferences of persons likely to be affected by, or to have an interest in the matter, including persons with disabilities, children and older persons.

N/A

Does the issue, proposal, decision or other matter have a high degree of significance or engagement as determined under the Council's Policy #2124?

N/A

If the matter has a Community rather than a District wide relevance has the Community Board's views been sought?

N/A

Financial Implications and Budgetary Provision.

These are noted in the report.

Chief Financial Officer review.

The Chief Financial Officer is the report writer

 

 

 

 


Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

5.5         Council Financial Report February 2019

File Number:           A2403234

Author:                    Angie Thomas, Chief Financial Officer (Acting)

Authoriser:             Janice Smith, General Manager - Corporate Services (Acting)

 

Purpose of the Report

To provide an overview and information on the current financial position and performance of the Far North District Council as at 28 February 2019.

Executive Summary

This report provides a summary overview, Statement of Financial Performance, Capital Performance and Borrowing and Investment reports.

 

Recommendation

That the Audit, Risk, and Finance Committee receive the report “Council Financial Report February 2019”.

 

 

Background

This reports financial information as at 28 February 2019.

Discussion and Next Steps

This report is for information only.

Financial Implications and Budgetary Provision

There are no financial implications or budgetary provisions required as a result of this report.

Attachments

1.       Council Financial Report 28 Feb 2019 - A2404424  

 


Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

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Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

6            Public Excluded  

RESOLUTION TO EXCLUDE THE PUBLIC

Recommendation

That the public be excluded from the following parts of the proceedings of this meeting.

The general subject matter of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under section 48 for the passing of this resolution

6.1 - Confirmation of Previous Minutes (Public Excluded)

s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege

s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

6.2 - Internal Audit and Assurance

s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege

s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

6.3 - FNDC Current Legal Action Potential Liability Claims

s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege

s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

6.4 - Blues-Chiefs Preseason Game Review

s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities

s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

 

 

 

 

 

 


Audit, Risk, and Finance Committee Meeting Agenda

28 March 2019

 

7            Meeting Close