Agenda of Extraordinary Council Meeting

23 May 2023

5 Ngā Pūrongo / Reports

5.1 District-Wide Rating For Water Supply And Wastewater Proposal Deliberations.

File Number: A4213732

Author: Jo Boyd, Corporate Planner

Authoriser: Janice Smith, Acting Chief Executive

Take Pūrongo / Purpose of the Report

The purpose of this report is to provide background information and to present financial considerations to assist in decision-making for the district-wide rating of water and wastewater proposal.

WhakarĀpopoto matua / Executive Summary

· The statutory purpose of the Annual Plan is to confirm differences from what was proposed in the corresponding year of the current Long-Term Plan 2021-31.

· Council agreed to discuss the proposal to amend the rating methodology for water and wastewater rating in a separate consultation process

· Consultation commenced on the proposal for change on 21 November 2022 and ran for an extended period to February 2023.

· The purpose of this deliberations report is to provide the information required to enable Council to make a final decision on the suggested change to rate methodologies

tŪtohunga / Recommendation

That Council:

a) adopts the proposal to change to a district-wide targeted rate for water supply and wastewater services

b) amends its Revenue & Financing Policy to include the change for implementation 1 July 2023.

1) TĀhuhu kŌrero / Background

There is an increasing challenge in our district to fund water and wastewater. Currently these services are funded through capital and operational targeted rates, with the capital rate calculated on a scheme-by-scheme basis. As part of the previous rate review, it was proposed to change to district-wide targeted rating for reticulated water and wastewater services because it was identified that for communities with a small number of ratepayers, the scheme-based costs were becoming unaffordable.

Since then, costs continue to increase, assets continue to age, and stricter compliance requires a higher level of service. There is also a clearer picture of the future impacts of not taking immediate action to resolve water infrastructure issues.

The proposal that was consulted on was to remove the current scheme-based targeted rates for water and wastewater and replace them with a district-wide targeted rates. This would impact ratepayers connected to (or able to connect to) the 15 wastewater schemes and those properties receiving piped water from our nine water treatment plants. Some ratepayers would experience a net increase in their rates while others would experience a decrease. It would not affect ratepayers who are not connected to (or not able to connect to) any Council wastewater or water scheme.

We proposed this changed to make sure we:

• Achieve compliance

• Support growth

• Manage affordability

• Prepare our communities for the Water Services Reform Programme.

Engagement

Consultation commenced on the 21 November 2022 to 16 February 2023. 213 submissions were received during that time. One additional last submission was received and added into the submission schedule, but not counted as part of the analysis, however their comments and submission were included in the complete submission set provided to Elected Members. 155 submissions were received via the ‘have your say’ page on the FNDC website and the remaining 58 submissions were either via the inbox (48) or hardcopy form (10). Five submitters wished to have their submissions heard verbally, however when contacted only four submitters wished to be heard. An initial date of the 29^th of March was postponed to the 6^th of April where four submitters verbally presented to council.

Final analysis

All submissions were provided to Elected Members for review. Final analysis was based on the initial question proposed in the consultation: ‘Do you support the proposal to change the way we rate for reticulated water and wastewater to a district-wide rate, instead of a scheme-based rate?’

Total by filtered scenario	Support	Does not support	N/a	Total
Able to connect to reticulated water and/or wastewater, but not connected through choice	3	11	-	14
Connected to both reticulated water and wastewater	21	31	1	53
Connected to just reticulated water	6	13	-	19
Connected to just reticulated wastewater	15	34	-	49
Totals	45	89	1	135

Noted that in the comments received for connections to reticulated just water or wastewater, the submitters assumed that they would then be charged for both services regardless of if they received both services or not. This resulted in a larger ‘do not support’ response.

Totals by grouped filtered comments*	Support	Does not support	N/a	Total
Additional costs to ratepayer	-	2	1	3
Affordability	6	26	-	32
Fairer system (Inc regional / improved wellbeing / environment)	46	-	-	46
Inequitable system	2	37	-	39
Infrastructure investment and/or compliance	7	4	-	11
Misunderstood proposal/not enough information provided	-	4	2	6
Prefers current system	-	8	1	9
User pays	4	47	2	53

* Responses grouped and calculated based on actual responses to the question proposed.

2) matapaki me NgĀ KŌwhiringa / Discussion and Options

Further to this consultation taking place, government has revised its 3Waters approach, including a name change to Affordable Water Reform Programme with a re-focus on the impetus for the reforms being to improve the affordability of water services. A number of key changes including the number of WSE’s from four to ten, a staggered establishment date and each territorial authority owner appoints one territorial authority representative to the regional representative group.

The main change that impacts this proposal is the staggered establishment date, as the Northland entity will not change. Progress is already underway in the transition of water services into the new entity and it is possible that Entity A could continue its current trajectory, which would include changing the process for district-wide rating of water and wastewater.

There is also the possibility that any reforms will be repealed by any new government should there be a change in government.

Option 1 – Change the rating system as proposed (recommended)

With regard to the Affordable Water Reform, Council will stay within Entity A, and indications from government are that all entities will require a district-wide targeted rate for water supply and wastewater. By changing to a District Wide rating methodology this will align with the current Affordable Water Reform Programmes timeframe, even if there is a staged transition.

Option 2 – Keep the current targeted rating system for water supply and wastewater

Leave the decision to lie on the table until such time that further progress is made in the reforms space and/or central government elections have occurred and programme either continued or repealed. This would then allow a possible change to district-wide rating to occur 1 July 2024 or 1 July 2026.

TAKE TŪTOHUNGA / REASON FOR THE RECOMMENDATION

All submissions have been collated and analysed. To facilitate Council decision making staff have analysed feedback and provided recommendations for Council to debate and, if desired, amend. The decision made at this meeting will come into effect on 1 July 2023. All submitters to this proposal will be notified in due course.

3) PĀnga PŪtea me ngĀ wĀhanga tahua / Financial Implications and Budgetary Provision

The decisions made at this meeting determine the financial implications and the district-wide targeted rate for water supply and wastewater for the 2023/24 financial year.

Āpitihanga / Attachments

1. DW rating comments relating to the proposed change - A4214023 ⇩

Hōtaka Take Ōkawa / 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.

He Take Ōkawa / Compliance Requirement	Aromatawai Kaimahi / 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	Significance of the proposed changes to the schedule of fees and charges is assessed as medium/low.
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	The proposed change is relevant to the rating remission policy 2021, Local Government (Rating) Act 2002 and community outcomes of Communities that are healthy, safe, connected and sustainable, proud vibrant communities and a wisely managed and treasured environment that recognises the special role of tangata whenua as kaitiaki.
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 proposal has relevance to those affected who can connect or are already connected to water supply and/or wastewater.
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. State the possible implications and how this report aligns with Te Tiriti o Waitangi / The Treaty of Waitangi.	Consultation was carried out in accordance with section 83 of the LGA.
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 (for example – youth, the aged and those with disabilities).	Those identified have been contact directly through the consultation process and those who provided feedback have been acknowledged.
State the financial implications and where budgetary provisions have been made to support this decision.	No financial implications exist, it is a transitional change from an individual targeted to a district-wide targeted rate.
Chief Financial Officer review.	The Chief Financial Officer has reviewed this report.

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Extraordinary Council Meeting Agenda

23 May 2023

5.2 Annual Plan Deliberations - 2023/24

File Number: A4212105

Author: Angie Thomas, Team Leader - Accounting Services

Authoriser: Janice Smith, Acting Chief Executive

Purpose of the Report

The purpose of this report is to provide background information and to present financial considerations to assist in decision-making for the 2023/24 Annual Plan.

Executive Summary

· The statutory purpose of the Annual Plan is to confirm differences from what was proposed in the corresponding year of the current Long-Term Plan 2021-2031.

· The Consultation Document putting proposals to the public was adopted on 21 March 2023.

· The purpose of this deliberations report is to provide the information required to enable Council to make final decisions to minimise the rates requirement for the 2023/24 financial year while contributing to the economic recovery of the district and ensuring minimal impact on levels of service.

· Each recommendation is referenced to the relevant section in the attached discussion document.

Recommendation

That Council:

1. Consultation items;

a. Partnering with the Turner Centre to better deliver arts and culture for the district

i) That Council accept the proposal to take over the ownership of the Turner Centre building.

ii) That additional operating budgets of $71K are included in the annual plan for the

a) Fixed cost grant

b) Maintenance of the external fabric of the building

iii) That Council repays the outstanding balance of the Westpac loan of circa $1.1M and ceases the guarantee and ongoing interest payments.

iv) That staff develop an operating agreement in conjunction with the Turner Centre Board

b. Enabling housing development on Māori Freehold Land

i) That Council adopt the policy R23/15 Enabling Housing Development on Māori Freehold Land as proposed.

ii) Staff establish clear application guidelines.

c. Amend Council rates remission policies to include R23/15

That Council approves amendment to current and future policies to include R23/15 Enabling housing development on Māori freehold land.

d. Other issues raised

That Council notes all other comments made in the submissions but makes no change to the Annual Plan 2023/24.

2. Adopt Fees and Charges

a. That Council amends the attached Schedule of Fees and Charges for 2023/24 to replace, cancel and amend partial fee types for Resource Consents, Building Consents, Compliance, and Cemeteries.

b. That Council adopts the Schedule of Fees and Charges for 2023/24.

3. Additional capital programme requests

a. That Council approves the additional capital programme funding of

Year	Value ($millions)
2023/24	4.980
2024/25	2.875
2025/26	2.070

As outlined in detail within the report.

b. An additional $50k operational budget is required for professional fees to progress the stormwater resource consents capital project for the Te Hiku drainage district.

c. That Council approves to amend the 2023/24 capital programme with the projects totalling $19.7M that have been rescheduled from 2022/23.

d. The total capital programme for 2023/24 is $105.2M which excludes the additional requests.

4. Rate increases and debt ceiling

a. That Council notes the rate increases and debt ceiling benchmarks in the next 3 years from 2023/24 to 2025/26.

5. Other issues

a. That Council approves the reinstatement of $100k for Placemaking for the Te Hiku Community Board.

b. That Council approves the role of Coordinator to Te Kuaka Committee of $87k and includes this sum in the operational budgets.

1) Background

This is the second annual plan process carried out for the 2021-31 Long Term Plan.

A number of workshops were held to review both operational and capital expenditure. Staff have taken a further look to provide further analysis on the capital programme for the 2022/23 and outer years which has resulted in a now proposed 7.75% rate increase.

The purpose of this deliberations report is to provide the information required to enable Council to make final decisions to set the rates requirement for the 2023/24 financial year while considering minimal impact on levels of service.

Annual Plan process

The statutory purpose of the Annual Plan is to confirm differences from what was proposed in the corresponding year of the current Long-Term Plan 2021-2031.

Community consultation/engagement is required only on those changes that are considered ‘significant’. Typically, submitters will also provide feedback on other topics not discussed in the Consultation Document. Such feedback is recorded, analysed and considered alongside feedback on the specific proposals.

As highlighted in the Consultation Document 2023/24, the Council has focused on delivering the key infrastructure and services, but this has come with a number of challenges including Cyclone Gabrielle and other weather events, this has compounded with the highest level of inflation imposing significant extra costs nationally.

The Consultation Document putting proposals to the public was adopted on 21 March 2023. Also consulted on at the same time were proposed fees and charges for 2023/24. Consultation of the two items in tandem is the usual process for the Annual Plan and fees and charges.

Council plans to adopt the final Annual Plan on 29 June 2023 at an ordinary Council meeting.

Consultation

Consultation was carried out from 24 March 2023 until 24 April 2023 on proposals to:

· Partnering with the Turner Centre to better deliver arts and culture for the district

I support this proposal	I don’t this support proposal	I’m not sure	N/a
623	50	12	5

· Enabling housing development on Māori Freehold Land (policy)

I support the conditions in the draft policy	I do not support the conditions in the draft policy	I’m not sure	N/a
270	60	220	140

692 submissions provided feedback on both consulted and non-consulted topics. 18 submitters asked to speak at verbal submissions held both in person and digitally on 17 May 2023.

There were a large number of submissions received in support of the Turner Centre proposal as the consultation document was shared amongst user groups and other organisations that support or use the Centre. These submitters did not necessarily respond to the second proposal leaving an unsure or n/a response. The overall general comments the majority related to the increase in rates (13 comments) as well as comments relating to activities (7), planning/regulatory/governance (6), wellbeing (2), spending, fees (3), other (3).

2) Discussion and Options

1.a Partnering with the Turners Centre to better deliver arts and culture

The general consensus from the submissions received is the value that communities across the district place on the Turner Centre seeing it not only as a hub for arts and culture but the importance for ongoing development in that space. Acknowledging that the current operations have been under immense economic pressure due to COVID-19, economic downturn and now continuing economic pressures for the near future.

Total operating costs budgeted for 2023/24 $71k which includes $45k grant.

The balance of the loan is $1.1M circa.

Option 1 Adopt the Partnering with the Turner Centre to better deliver arts and culture for the district proposal

Allows the Centre to continue to function and develop opportunities within the arts and culture sector across the district. A management agreement with the Turner Centre Board will need to developed in consultation with the Turner Centre Board and be presented to Council for discussion prior to adoption.

Option 2 Do not adopt the Partnering with the Turner Centre to better deliver arts and culture for the district proposal.

Unless there was alternative financial support, the Centre would probably have to cease operations. Reducing the options for people and communities within this space. There would also be an economic impact throughout the tourism and hospitality industry as some events would have utilised accommodation providers throughout the district.

1.b Enabling housing development on Māori Freehold Land (policy)

Option 1 Adopt the policy with proposed conditions and criteria

For 2023/24 Council proposes a new rating policy to enable housing development on Māori Freehold Land through the remission of rates. Council has Policy R23/13 – Incentivising Māori Economic Development this policy will sit alongside to better assist Māori in both areas of development and provide housing opportunities on Māori Freehold Land. This is a requirement under section 114A of the Local Government Rating Act and this policy needs to be in place by 1 July 2024.

Option 2 Amends the conditions in the draft policy

While the council is required to have this policy, changes can be made to the policy to best fit.

The term could be reduced to a sliding scale of 1 to 5 years:

Year 1 – 100% remitted

Year 2 – 75% remitted

Year 3 – 50% remitted

Year 4 – 25% remitted

Year 5 – 0% remitted

2. ADOPT FEES AND CHARGES

As part of preparations for the LTP 2024-34, fees and charges are being thoroughly reviewed by staff to ensure the following:

· Fees are being applied correctly and consistently.

· Fees meet the pre-requisite requirement of being cost recovery (where applicable)

· Resource consent fees have been reviewed and recalculated to address past inconsistencies and bring those fees to where practical and reasonable cost recovery.

· This is an ongoing process, aligning with the LTP process and all fees are reviewed annually.

There were three direct submissions received though the Special Consultative Process (LGA 2002, Section 83) that ran at the same time as the Annual Plan consultation process.

· Submitter No. 1 in total support of the proposed fees changes as outlined in the Schedule, except for correcting the clerical error of 2022/23 to increase the fee for oversize double depth internments.

· Submitter No. 2 objection to all fee increases, commenting that services were not equitable across the district.

· Submitter No. 3 supported in part the changes in resource consents and objected to all other proposals.

Three comments were also received through the Annual Plan submissions. Two supporting the proposed changes - one in general and would like to see the reintroduction of developer contributions, one specifically supporting the hourly fees for resource consents, however suggested that building consents be a fixed fee. There were two objections specifically resource consent fees, one to the calculation of resource consent fees and the other to the increase of fees.

Option 1 Adopt fees and charges 2023/24

There are no reasons for the Council not to proceed to adopt the proposed Fees and Charges for the forthcoming year.

Option 2 Don’t adopt the proposed Fees and Charges Schedule 2023/24

If the proposed Fees and Charges Schedule 2023/24 are not adopted, then fees and charges will remain for the next year or until Council determines a suitable timeframe, noting that if there were any increases in the resource consents area, we would be required to carry out a Special Consultative Process again, allowing time for consultation, verbal submissions, and deliberations to take place.

Any additional shortfall in fees as budgeted would then be required from the general rate to cover any area where cost recovery was not able to be met.

3. ADDITIONAL CAPITAL PROGRAMME REQUESTS

Throughout the Annual Plan process staff have completed an extensive review on the current and future years of the capital programme.

Additional new capital projects have been requested by staff to be included in the Annual Plan 2023/24:

		Additional LOS request			Justification /comment
Cost centre	Project name	2023-24	2024-25	2025-26	Justification /comment
Carparks	Okaihau Car Parking, Cycle Trail	-	-	500,000	Support use of Cycle Trail and economic growth
Halls	Kohukohu Hall Renewals	600,000	-	-	Renewal project commenced FY23 requires additional funding to complete
Maritime	Maritime, lighting meters	50,000	-	-	New project - metering of all DF lighting and power supplies which draw power from street lighting required to ensure power cost is at correct rate and sustainment costs are reduced. Without metering a 3 monthly audit is required at an average cost of $3k per audit per location.
	Opononi Maritime Boat Trailer Park	500,000	1,500,000	400,000	New project - identified to address known safety risks and facility restrictions
Parks & Reserves	Minor works, Northern	-	350,000	350,000	Parks & Reserves - New budget to meet unplanned works across all Ward rated DF cost centres
	Minor works, Eastern	350,000	350,000	350,000	Parks & Reserves - New budget to meet unplanned works across all Ward rated DF cost centres
	Minor works, Western	350,000	350,000	350,000	Parks & Reserves - New budget to meet unplanned works across all Ward rated DF cost centres
	Taipa Point Reserve Stormwater mitigation	100,000	200,000	-	Linked to Roading project
	Amokura Reserve, Kerikeri	-	120,000	-	Community identified project
	Kowhai Park Footpath, Kaikohe	-	5,000	-	Community identified project
	Playground, Rawene	-	-	120,000	Relocate public playground currently located within leased property
	Objects & Statues	80,000			Various Objects and statues require renewal as identified in condition assessment programme
Toilets	Kerikeri Motorhome & Caravan Dump Station	250,000			Kerikeri Dump station on leased land, Lessor has indicated that the renewal of the lease is unlikely.
Stormwater	Stormwater Reactive Renewals (LOS funds required to increase budget available)	200,000			Continued budgetary provision required to meet urgent unplanned works
	348a SH12 Omapere Stormwater	500,000			Additional budget required to undertake work agreed to via a signed discharge agreement with property owner
	Sommerville Ave Kaitaia	300,000			Agreed contribution to Roading project being delivered in FY24
	Stormwater Resource Consents - Te Hiku	500,000			Additional $50k professional fees budget will be required to support this project
	Kerikeri Stormwater Network Improvements Stage 2, 7 Hone Heke	250,000			RFS4110914 refers - Council committed to stage II works
Wastewater	Russell WWTP	350,000			Work required to address existing abatement notice
	Reactive Health & Safety - District Wide	400,000			To address known H&S needs
Water	Reactive Health & Safety - District Wide	200,000			To address known H&S needs
		4,980,000	2,875,000	2,070,000

Option 1 Include all new capital programme requests

That all new capital programme requests are accepted as there are no rating impacts in the 2023/24 year of the Annual Plan but will impact in the future years once completed. These will be all loan funded.

If the stormwater resource consent capital project for the Te Hiku drainage district is approved, the additional $50k operational budget will need to be considered to support this project. This will be for professional fees and will have a rating impact.

Option 2 Partially or exclude all capital programme requests

That only a select group of projects be included in the Annual Plan 2023/24 or exclude all of the additional requests and will be reviewed during the Long-Term Plan (LTP) 2024-34 process.

4. RATE INCREASES AND DEBT CEILING

Disclosure requirements as per The Financial Reporting and Prudence Regulations 2014 alongside the Financial Strategy ensures we are prudently managing revenues, expenses, assets, liabilities and general financial dealings.

Rates (increase) affordability

This benchmark compares planned rates with quantified limit on rates contained in the Financial Strategy of the Long Term Plan (LTP) 2021-31.

The quantified limit is that the rates increase should not exceed LGCI plus 3.5%. This is indicating that the limit is nearing for 2023/24 and exceed in 2024/25.

	2023/24	2024/25	2025/26
Quantified limit on rates increase	7.80%	6.90%	6.40%
Proposed increase within limit	7.75%	11.11%	4.71%

Debt Affordability (external debt)

This benchmark compares debt planned debt with a quantified limit on borrowing contained in the Financial Strategy. The quantified limit is that net debt be no higher than 175% of total revenue excluding capital subsidies.

This is indicating the limit in 2025/26 will be exceeded.

	2023/24	2024/25	2025/26
Limit	255,746	274,609	285,379
Borrowing	182,779	235,613	306,658
	71.5%	86%	107%

5. OTHER ISSUES

Te Hiku Community Board has requested the reinstatement of $100k for Placemaking. This was removed in error during the process and has been committed for Master Planning.

The establishment of the Te Kuaka Committee has identified a number of legacy issues that are being worked on and the administrative workload that has eventuated is more than can be coped with. The Committee are requesting a co-ordination role of $87k similar to the Community Board Co-ordinator roles that support those boards.

These will incur a combined additional 0.187% on rates.

Reason for the recommendation

3) Financial Implications and Budgetary Provision

The decisions made at this meeting will determine the financial implications and rates for the 2023/24 financial year.

Attachments

1. APFinalAnalysis2023 - A4212041 ⇩

2. F&Csubmissions2023 - A4211793 ⇩

3. Fees_and_charges_schedule_202324 - A4212234 ⇩

4. TC - Kerikeri Civic Trust Loan Guarantee - A4215657 ⇩

5. Rate Change AP24 Presentation - A4217147 ⇩

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

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	Decisions at this meeting lead to the adoption of an Annual Plan for the coming financial year. Consultation has been carried out on significant variations to the corresponding year in the current Long Term Plan.
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	Local Government Act 2002, Significance and Engagement Policy, 2018-28 Long Term Plan.
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.	District-wide relevance. Community Board chairs have been involved in all meetings and workshops relating to this Annual Plan.
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.	Significant consultation and engagement has been undertaken, both for the 2018-28 Long Term Plan and in the preparation of this Annual Plan.
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 (for example – youth, the aged and those with disabilities.	Significant consultation and engagement has been undertaken, both for the 2018-28 Long Term Plan and in the preparation of this Annual Plan.
State the financial implications and where budgetary provisions have been made to support this decision.	Decisions will set budgets and determine rates for the financial year 1 July 2020 to 30 June 2021.
Chief Financial Officer review.	The Chief Financial Officer has reviewed this report

Extraordinary Council Meeting Agenda

23 May 2023

5.3 Nomination of President for Local Government New Zealand

File Number: A4212097

Author: Joshna Panday, Democracy Advisor

Authoriser: Jacine Warmington, Group Manager - Strategic Relationships

Take Pūrongo / Purpose of the Report

To formalise a nomination on behalf of Far North District Council for the President of Local Government New Zealand.

WhakarĀpopoto matua / Executive Summary

· Councils across New Zealand have been given an opportunity to provide a local authority nomination for the role of president for Local Government New Zealand;

· Any elected member is positioned to stand for the role of President nominated by one member Council;

· The nomination is required to be seconded by another member Council;

· Far North District Council has been approached by New Plymouth District Council to second their nomination of Mayor Neil Holdom for the role of President;

· The submission to support this nomination is required by close of business on 31 May 2023, and with timelines being very tight, this decision cannot be deferred to the next meeting on 1 June 2023;

tŪtohunga / Recommendation

That Council seconds the candidate nomination of Mayor Neil Holdom of New Plymouth District Council for President of Local Government New Zealand.

1) TĀhuhu kŌrero / Background

Council has been approached by New Plymouth District Council with a formal request to second their nomination of Mayor Neil Holdom for President of Local Government New Zealand.

The process for nominating a candidate requires another member Council to second the nomination for the purpose of validating the submission.

A copy of the President nomination form is attached.

Whilst Council may put forward their support of the nomination, should there be other candidates, the final decision on appointment will be determined by election at the Local Government New Zealand AGM on Wednesday, 26 July 2023.

2) matapaki me NgĀ KŌwhiringa / Discussion and Options

At the writing of this report the Far North District Council had only been approached by the New Plymouth District Council for support of their nomination.

Take Tūtohunga / Reason for the recommendation

To endorse the decision to support the nomination.

3) PĀnga PŪtea me ngĀ wĀhanga tahua / Financial Implications and Budgetary Provision

There are no financial implications as a result of this report.

Āpitihanga / Attachments

1. President nomination form - A4212115 ⇩

Hōtaka Take Ōkawa / 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

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

He Take Ōkawa / Compliance Requirement	Aromatawai Kaimahi / 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.	n/a
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 role is representative of the District and Council.
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. State the possible implications and how this report aligns with Te Tiriti o Waitangi / The Treaty of Waitangi.	This is a governance nomination to a local authority regulating body and as such has no particular implication for Māori
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 (for example – youth, the aged and those with disabilities).	None – this report relates only to a nomination
State the financial implications and where budgetary provisions have been made to support this decision.	There are no specific financial implications
Chief Financial Officer review.	The Chief Financial Officer has not reviewed this report

Extraordinary Council Meeting Agenda

23 May 2023

5.4 Endorsement of Remits submitted by Kapiti Coast District Council and Invercargill City Council to the 2023 LGNZ AGM

File Number: A4217506

Author: Joshna Panday, Democracy Advisor

Authoriser: Jacine Warmington, Group Manager - Strategic Relationships

Purpose of the Report

To formalise the support provided to Kapiti Coast District Council and Invercargill City Council on their respective remit applications for consideration at the 2023 Local Government New Zealand (LGNZ) Annual General Meeting (AGM).

Executive Summary

· An application for a remit submission requires the support of an LGNZ zone, sector or five Councils.

· The Kapiti Coast District Council and Invercargill City Council have requested the support of 2 respective remit applications to be submitted to LGNZ for inclusion on the 2023 LGNZ AGM agenda.

· The requests are to offer support by 23 May 2023 to ensure timely submission by Wednesday, 24 May 2023.

· Due to the timeframe for deliverables, this report could not be postponed to the next Council meeting, 1 June 2023

Recommendation

That the Far North District Council endorse the support provided to Kapiti Coast District Council and Invercargill City Council on the following remits to be submitted to the 2023 Local Government New Zealand AGM:

1) Kapiti Coast District Council - Kiwisaver

2) Invercargill City Council - Young Elected Members Network

1) Background

Each year LGNZ calls for proposed remits to be considered at their Annual General Meeting. Nominating Councils must have endorsement from 5 other Councils. The AGM votes on these proposals and adopted remits become LGNZ Policy.

The respective remits proposed by Kapiti Coast District Council and Invercargill City Council have been received by Far North District Council, requesting support to validate an application to LGNZ.

The applications for each of the remits are attached.

2) Discussion and Options

An overview of the remit and the importance as suggested by the applicant is listed below:

Remit

Importance as per application

Kapiti Coast District Council - Kiwisaver

This remit is about equity. For 16 years, since its inception,

KiwiSaver has been available for ALL New Zealanders, who -

usually reside in New Zealand, and are aged between 18 and

65 and work. And for the entire time, our sector has been the

only group in our country who have been excluded from the

accruing savings, and any ability to benefit from personal and

employer contributions and annual Government contributions.

KiwiSaver has evolved into a sort of universal benefit for all to

use during our lifetimes, whether it is for a first home deposit,

during a personal or community emergency, or as a form of

life insurance.

Unfortunately, those elected members who are most fiscally

disadvantaged fall into two groups. The young, who we are

trying so hard to attract to the sector, and those with the

experience of 2 or 3 or more triennium behind them, who can

count in the tens of thousands, the negative effects on their KiwiSaver balances on their 65th birthday.

We meet all the criteria to be eligible for KiwiSaver benefits,

all we ask for is to be treated like all other New Zealanders.

Invercargill City Council - Young Elected Members Network

This remit is critically important as it addresses the pressing issue of a lack of a standardised and independent process for handling complaints and escalating issues within local government.

Currently, councils handle their own problems in an ad-hoc manner, leaving many complaints unanswered and individuals feeling unsafe to come forward. This absence of a clear and impartial process undermines transparency, accountability, and public trust in local government. It also fails to provide legal protection for complainants and increases the risk of defamation.

By establishing a comprehensive framework that includes a complaints / issues / support / mediation forum and a tiered escalation process, this remit aims to promote fairness, protect complainants, restore public confidence, strengthen local democracy, and ensure timely and effective issue resolution. It will also enable economies of scale for Councils as with a centralised system it means that Councils are not left trying to justify the cost of an investigation against the cost of allowing behaviour to remain unchallenged^{^[1]}.

In September 2021, the LGC released the report to the Minister of Local Government. The report noted the wide variety of approaches of how Councils deal with complaints or issues and the total inability to deal efficiently with breaches. The recommendations have been placed on hold until the outcome of the Future of Local Government is resolved – while there is some merit to this approach as it allows changes to be done together, there is a very clear need for a standardised complaints process, improved tools to Councils and a reinforcing of the COC^{^[2]} process. This should also include the education / best practice guidance the LGC reference in the report.

Reason for the recommendation

To endorse the support on the two remits proposed by Kapiti Coast District Council and Invercargill City Council.

3) Financial Implications and Budgetary Provision

There are no financial implications in endorsing (or not), remits at the LGNZ AGM.

Attachments

1. Kiwisaver Remit Application Form - A4217804 ⇩

2. Remit Draft - Young Elected Members Network - A4217661 ⇩

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

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	This is a matter of low significance.
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	n/a
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.	These are matters considered to have national impact that we have opportunity to comment on from a district perspective. The views of the Community Boards have not been sought due to time constraints.
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.	Some of the remits will have a higher impact or require a higher level of engagement with Māori than others and will be considered should the applications reach LGNZ AGM
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.	Elected members will be impacted across the nation.
State the financial implications and where budgetary provisions have been made to support this decision.	There are no financial implications or need for budgetary provision in formulating a view on these remits.
Chief Financial Officer review.	The Chief Financial Officer has not reviewed this report.

Extraordinary Council Meeting Agenda

23 May 2023

5.5 Endorsement of Remits submitted by Hamilton City Council to the 2023 LGNZ AGM

File Number: A4216562

Author: Joshna Panday, Democracy Advisor

Authoriser: Jacine Warmington, Group Manager - Strategic Relationships

Purpose of the Report

To formalise the support provided to Hamilton City Council on 3 remit applications for consideration at the 2023 Local Government New Zealand (LGNZ) Annual General Meeting (AGM).

Executive Summary

· An application for a remit submission requires the support of an LGNZ zone, sector or five Councils.

· The Hamilton City Council has requested the support of 3 remits to be submitted to LGNZ for inclusion on the 2023 LGNZ AGM agenda.

· The request is to offer support on all 3 remits by 19 May 2023 to ensure timely submission by Wednesday, 24 May 2023.

· Due to the timeframe for deliverables, this report could not be postponed to the next Council meeting, 1 June 2023

Recommendation

That the Far North District Council endorses the support provided to Hamilton City Council on the following remits to be submitted to the 2023 Local Government New Zealand Annual General Meeting:

1. Virtual Quorum

2. Kiwisaver for Elected Members

3. Development of a shared understanding and centralised framework of wellbeing.

1) Background

Three remits proposed by Hamilton City Council have been received by Far North District Council requesting support to validate an application to LGNZ.

The application for each of the remits are attached.

Due to the timeframe of the application closing date, Kahika-Mayor Moko Tepania has offered support to all three remits.

2) Discussion and Options

An overview of the remit and the importance as suggested by the applicant is listed below:

#	Remit	Importance as per application
1.	Virtual Quorum	Allowing Members attendance via audio-visual link can better allow flexibility and ability for Members to manage both their own health and their own schedules. Allowing Members attendance via audio-visual link can better allow flexibility and ability for Members to manage both their own health and their own schedules.
2.	Kiwisaver for Elected Members	Currently, Elected Members are treated as independent contractors, with no obligation of the organisation KiwiSaver deductions or contribute to Members' KiwiSaver. This could be viewed as a disadvantage and a barrier to some being elected.
3.	Development of a shared understanding and centralised framework of wellbeing	The Local Government (Community Wellbeing) Amendment Act (2019) restored the four aspects of wellbeing to the mandate of all councils in New Zealand. The Act “provides for local authorities to play a broad role in promoting the social, economic, environmental, and cultural well-being of their communities, taking a sustainable development approach”. Unfortunately, the Act does not define what wellbeing, or the four dimensions (social, economic, environmental or cultural) mean. Given the importance of wellbeing to central and local government, it would be helpful to bring together the different frameworks and interpretations into a shared understanding of wellbeing. A lack of a centralised framework and shared understanding has led to multiple wellbeing frameworks and definitions being referenced and used. This adds complexity for Councils and other organisations and reduces the positive impact that the inclusion of wellbeing in the Act could have. It also makes it harder for central and local government to work together in partnership to improve wellbeing. Hamilton City Council Deputy Mayor, and Chair of Zone Two, Angela O’Leary raised this issue directly with Hon Kieran McAnulty, Minister for Local Government, at a Zone Two forum earlier this year. He suggested he would support work by LGNZ to bring everyone into alignment in this sphere. It will be important that central government is fully engaged in the conversation.

Reason for the recommendation

To endorse the support on all 3 remits proposed by Hamilton City Council.

3) Financial Implications and Budgetary Provision

There are no financial implications in endorsing (or not), remits at the LGNZ AGM.

Attachments

1. Remit application form 2023 - online quorum - A4216651 ⇩

2. Remit application form 2023 - EM kiwisaver and remuneration - A4216655 ⇩

3. Remit application form 2023 - wellbeing - A4216657 ⇩

4. Remit annex - wellbeing - A4216653 ⇩

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

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	This is a matter of low significance.
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	n/a
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.	These are matters considered to have national impact that we have opportunity to comment on from a district perspective. The views of the Community Boards have not been sought due to time constraints.
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.	Some of the remits will have a higher impact or require a higher level of engagement with Māori than others and will be considered should the applications reach LGNZ AGM
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.	Elected members will be impacted across the nation.
State the financial implications and where budgetary provisions have been made to support this decision.	There are no financial implications or need for budgetary provision in formulating a view on these remits.
Chief Financial Officer review.	The Chief Financial Officer has not reviewed this report.

[1] The current cots to Councils of Councillor “HR” is not known, Code of Conduct investigations for ICC have generally cost at least $10,000.00. The cost of this proposed system needs to be balanced against the costs of other interventions (Commissioners in Tauranga and the intervention at ICC).