Agenda of Extraordinary Council Meeting

Extraordinary Council Meeting Agenda

4 August 2026

5 Ngā Pūrongo / Reports

5.1 Local Government Reform - Head Start Outline Proposal

File Number: A5892045

Author: Roger Ackers, Head of Strategic Reform Initiatives

Authoriser: Guy Holroyd, Chief Executive Officer

Take Pūrongo / Purpose of the Report

To seek Council’s approval of the Northland Head Start Outline Proposal (HSOP) and agreement to submit the proposal through the Government's Head Start process, noting that support from at least one other Northland territorial authority is required for the proposal to be submitted.

WhakarĀpopoto matua / Executive Summary

· The final Northland Head Start Outline Proposal (HSOP) has been developed following previous decisions of participating Northland councils and subsequent review by the Local Government Reform Elected Member Steering Group (EMSG).

· While Kaipara District Council (KDC) has resolved not to support the proposal, the HSOP continues to be supported by Whangārei District Council (WDC), Far North District Council (FNDC) and Northland Regional Council (NRC) to date.

· Council is now asked to consider approval of the HSOP and agree to submit it to Government through the Head Start process, in conjunction with the other participating councils. The due date for submission is 9 August 2026.

· Not agreeing the HSOP would mean that reform for Northland would be done by Government, via a ‘backstop’ process.

tŪtohunga / Recommendation

That Council:

a) Notes the previous decisions of the Northland councils in relation to the Head Start Outline Proposal, as outlined in Attachment 1.

b) Notes Kaipara District Council's decision not to support the Head Start Outline Proposal based on the staged transition model and its request to be excluded from any Head Start proposal submitted for Northland.

c) Notes the recommendation of the Local Government Reform Elected Member Steering Group to approve the Head Start Outline Proposal as provided in Attachment 3 and recommend it to participating councils for approval and submission through the Government's Head Start process.

d) Notes that Whangarei District Council will consider approval of the Head Start Outline Proposal and participation in its submission through the Government's Head Start process, at its 3 August 2026 Council meeting.

e) Notes that Northland Regional Council will consider endorsement of the Head Start Outline Proposal at its 5 August 2026 Council meeting and that, while endorsement is not required for submission, it demonstrates continued regional support for progressing local government reform discussions.

f) Approves the Head Start Outline Proposal, as provided in Attachment 4

g) Agrees that the Head Start Outline Proposal approved in recommendation f (above) be submitted to Government by the local government reform secretariat, through the Head Start process, due by 9 August.

h) Notes that, subject to the decisions of the participating councils, it is intended that the Head Start Outline Proposal be submitted jointly by Whangārei District Council and Far North District Council, with endorsement from Northland Regional Council, and that Kaipara District Council may also participate should it subsequently resolve to support the proposal and seek inclusion prior to submission.

i) 9. Delegates authority to the Whangarei District Council Chief Executive (as Secretariat), to approve any minor editorial amendments required prior to submission, including corrections to grammar, spelling, formatting, layout and presentation, provided such amendments do not materially alter the intent or substance of the proposal approved by Council.

j) Notes that any substantive amendments to the Head Start Outline Proposal following Council approval would require reconsideration by participating councils, meaning submission would not be achievable within the timeframe for the Government’s Head Start process.

1) Tāhuhu Kōrero / Background

Following the Local Government Reform Elected Member Steering Group (EMSG) meeting on 6 July 2026, participating Northland councils considered the recommendation to progress a HSOP based on the staged transition model for local government reorganisation in Northland. The staged transition model provides for an initial move to two unitary authorities, before transitioning to a single Northland unitary authority over a period to be determined through the detailed design phase.

On 16 July 2026, FNDC resolved to support progressing the development of a HSOP and confirmed its preference that the interim staged model comprise a combined Whangārei District and Kaipara District unitary authority, alongside a standalone Far North District unitary authority. WDC resolved to support the same on 13 July 2026, while NRC resolved to endorse progression of the staged transition pathway, noting its preferred outcome remains a single Northland unitary authority.

KDC resolved not to support progression of the proposed HSOP and requested exclusion from any proposal submitted for Northland. While KDCs’ position has been reflected within the draft HSOP, the Government's Head Start process requires support from a minimum of two territorial authorities for a proposal to proceed, meaning the proposal remains eligible for submission should both WDC and FNDC approve it.

The WDC, NRC, FNDC, and KDC decisions are provided at Attachment 1 for reference. Following these decisions, the final HSOP was drafted and presented to the EMSG for review at its meeting on 27 July 2026. The EMSG recommended that the HSOP be presented to participating councils for approval and submission through the Government's Head Start process, with NRC providing endorsement. The minutes from the EMSG are provided at Attachment 3.

The final HSOP is provided at Attachment 4 and is now presented to Council for consideration. Should FNDC approve the proposal, it is intended that the HSOP be submitted jointly by FNDC and WDC, with endorsement from NRC, ahead of the Government's submission deadline of 9 August 2026. While KDC has resolved not to support the proposal and requested exclusion from any submission, this would not preclude KDC from subsequently participating in the submission should it decide to support the HSOP prior to lodgement.

2) matapaki me NgĀ KŌwhiringa / Discussion and Options

The final Head Start Outline Proposal (HSOP) has now been prepared and is provided at Attachment 4. The proposal reflects the staged transition model previously supported by WDC, FNDC and NRC, and has been developed following the direction provided by participating councils and the EMSG. The HSOP proposes a staged pathway towards a single Northland unitary authority, beginning with an interim arrangement comprising a combined Whangārei and Kaipara unitary authority and a standalone Far North unitary authority.

KDC, FNDC and NRC all provided documentation that outlines their council’s position on Local Government Reform. These were tabled, or included, in the EMSG agenda/minutes at the 27 July 2026 meeting and are provided for transparency at Attachment 2 of this report.

Kaipara District Council Position

KDC has resolved not to support the proposed HSOP and has requested exclusion from any proposal submitted for Northland. KDC's preference is for a model comprising three separate unitary authorities supported by shared services and further investigation of alternative collaborative arrangements.

While KDC’s position is acknowledged and reflected in the HSOP, a three-unitary-authority model is not able to proceed through the Government's Head Start process. The Head Start guidelines require proposals to include the amalgamation of two or more existing territorial authorities and a reduction in the number of local authorities. A model based on three separate unitary authorities would not meet this requirement as it would not involve any amalgamation of existing territorial authorities.

The role of the Northland Regional Council

Although NRC cannot formally submit a Head Start Outline Proposal, local government reorganisation directly affects regional councils and their regional functions. NRC has therefore played an active role throughout the development of the HSOP through its participation in both the EMSG and staff working group processes.

NRC has contributed to the assessment of options, development of the preferred model and preparation of the HSOP. While NRC's preferred outcome remains a single Northland unitary authority, it has endorsed progression of the staged transition model in order to maintain a collaborative and regionally supported approach to reform.

Endorsement of the HSOP from NRC remains important. Regional functions, environmental management responsibilities, and future governance arrangements are all addressed within the HSOP, and NRC's involvement helps ensure the proposal considers the work and role of the Regional Council, rather than solely those of the participating territorial authorities.

Recommendations from the EMSG

The EMSG was established to provide governance oversight and collective direction throughout the development of local government reform options for Northland. Since the commencement of the Head Start process, the EMSG has considered community feedback, technical analysis, governance options and council positions, and has provided direction to staff and advisors regarding the development of the HSOP.

At its meeting on 27 July 2026, the EMSG reviewed the final draft HSOP and agreed to recommend that it be presented to participating councils for approval. The EMSG further recommended that the proposal be approved for submission by WDC and FNDC, with endorsement from the NRC. The EMSG minutes are provided in Attachment 3.

Alternative to the Head Start pathway

The HSOP pathway is voluntary. For Northland, WDC, FNDC and NRC continue to support progressing through the Head Start pathway. Submitting a locally developed proposal provides an opportunity to progress a "by Northland, for Northland" approach to local government reform, which is important for our communities.

Should councils choose not to proceed through the Head Start pathway, local government reorganisation discussions and decisions would instead continue through the Government-led backstop process. While this is undefined at the moment, it is likely to align with Government’s preference for single Unitary Authorities by 2028, and Northland Councils would then lose control of the process and timing.

Policy and planning implications

Local government reform is progressing alongside significant Resource Management (RM) reform, including the proposed replacement of the Resource Management Act with new planning and natural environment legislation. These reforms are expected to require a shift to a more regionally coordinated planning framework, including development of a regional spatial plan and greater alignment across councils. Local government reform is being progressed to ensure alignment with resource management change.

TAKE TŪTOHUNGA / REASON FOR THE RECOMMENDATION AND NEXT STEPS

The recommendation is made because approving and submitting the Head Start Outline Proposal (HSOP) enables Northland councils to continue progressing a locally developed approach to local government reform through the Government’s Head Start process. The proposal reflects the direction previously provided by participating councils, has been reviewed and recommended by the Elected Member Steering Group, and meets the Government’s requirement for a proposal jointly supported by at least two territorial authorities. Declining to approve the HSOP would remove Northland’s opportunity to progress reform through the Head Start pathway and would result in any future reorganisation being considered through the Government-led backstop process.

Approval of the HSOP does not commit Council to any future local government structure, nor does it implement local government reorganisation. It is an outline proposal only. Should the proposal be accepted by Government, further detailed design, analysis, engagement, consultation and decision-making would occur before any future reorganisation could proceed. Approval therefore allows Northland to participate in the next stage of reform discussions while retaining the opportunity to assess the detailed proposal and its implications before any final decisions are made.

Assuming participating councils approve the HSOP, it will be lodged with Government on Friday 7 August 2026, ahead of the Sunday 9 August 2026 timeframe.

As KDC has resolved not to support the HSOP, it is intended that, subject to council approvals, the proposal be submitted jointly by WDC and FNDC, with endorsement from NRC. Approval by WDC or FNDC alone would not be sufficient to enable submission, as the proposal remains dependent on support from at least one other territorial authority.

Given the Government's submission deadline of 9 August 2026, there is no opportunity for further substantive amendments to the HSOP. Any material changes would likely require reconsideration by participating councils to ensure continued support and alignment with the proposal being submitted. For this reason, the delegation sought through this report is limited to minor editorial amendments that do not alter the intent or substance of the proposal approved by Council.

It is important to note that lodgement of the HSOP is only the first phase in the Government’s local government reform programme. It is a high level outline proposal only. The Government has been clear that following its approval (likely in September 2026) the next phase is where the detailed design of the model, along with benefits/disbenefits etc will be assessed and analysed.

This means that participating councils will have further opportunity to consult with the people of Northland, understand if this approach works, design the model in more depth and make further decisions on the programme. The detailed design phase report is due in March 2027.

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

WDC, FNDC and NRC have each made provision within their budgets to support the Local Government Reform programme, including programme establishment, governance arrangements, technical advice, options analysis and development of the Head Start Outline Proposal (HSOP). These budget allocations have funded the work completed to date. Kaipara District Council has not, at this stage, allocated funding to participate in the programme.

The overall programme budget remains indicative at this stage, with further financial analysis and cost estimates to be developed should the proposal progress to the next phase of the Head Start process. Any future programme costs, including detailed design, transition planning and potential implementation costs, will be dependent on the final local government arrangements progressed and will be subject to future council consideration and decision-making.

Should the HSOP be accepted by Government, participating councils will review programme governance, scope and budget requirements during the next stage to ensure sufficient resourcing is in place for future work programmes.

Āpitihanga / Attachments

1. Attachment 1 - Resolutions on Head Start outline Proposal from Northland Councils - A5893096 ⇩

2. Attachment 2 - Position Statements from other Councils - A5893098 ⇩

3. Attachment 3 - EMSG Minutes UNCONFIRMED 27.07.26 - A5894100 ⇩

4. Attachment 4 - Northland Local Government - A Staged Path to Reform - A5893812 ⇩

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	In accordance with Council's Significance and Engagement Policy, this matter is assessed as having a high level of significance due to its potential long term implications for local government arrangements in Northland and the associated level of public interest. However, the decision before Council is limited to whether it wishes to approve and submit the Head Start Outline Proposal to Government. Approval of the proposal does not itself implement local government reorganisation, alter governance arrangements, transfer assets, or make any final decision regarding future local government structures. Decisions regarding whether the proposal progresses beyond the outline proposal stage rest with Central Government, and any future reorganisation process would require further analysis, engagement, consultation and decision-making if the proposal is approved. At this stage, engagement is considered proportionate to the decision being made and the timeframe provided by the Government for the submission of a Head Start Outline Proposal. Community feedback, Iwi and Hapū engagement, and stakeholder input undertaken to date have informed the development of the HSOP. Should the proposal be accepted by Government and progress to the detailed proposal stage, further and more comprehensive engagement and consultation would be undertaken in accordance with statutory requirements and Council policy.
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	Relevant legislation includes the Local Government Act 2002, including sections 76 to 82 relating to decision-making, and the Local Government (Structural and Governance Reform) legislation and Head Start framework established by Central Government. Relevant Council policies include the Far North District Council Significance and Engagement Policy and Long Term Plan 2024-34. The proposal aligns with Council's community outcomes by supporting effective local governance, enabling councils to work collaboratively for the benefit of Northland communities and ensuring local government arrangements remain fit for purpose into the future.
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 district-wide relevance as it considers potential future local government arrangements affecting the entire Far North District and wider Northland region. The matter is therefore not specific to any individual community board area and no particular community board has a greater interest than another. Community board views have been represented through elected members and through engagement and feedback processes undertaken as part of the development of the Head Start Outline Proposal.
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.	The proposal has the potential to affect future governance arrangements, representation arrangements and relationships between local government and tangata whenua across Northland. Accordingly, Iwi, Hapū, Post Settlement Governance Entities and Māori organisations have been provided opportunities to engage during development of the Head Start Outline Proposal. Feedback received through those engagement processes has informed consideration of governance, representation and partnership matters within the proposal. This report relates to the submission of an outline proposal only and does not make any decisions regarding land, water, assets or statutory arrangements. The proposal recognises the importance of Te Tiriti o Waitangi and acknowledges that any future detailed design work would need to further consider Māori participation in local decision-making, relationships with Iwi and Hapū, and opportunities to strengthen arrangements that support Treaty-based partnerships.
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).	Persons and organisations likely to be affected by, or interested in, this proposal include residents and ratepayers across Northland, Iwi and Hapū, local businesses, community organisations, elected members, council staff, neighbouring councils and Central Government. Community, stakeholder and tangata whenua engagement undertaken during development of the Head Start Outline Proposal has informed the proposal and the options considered by councils and the Elected Member Steering Group. The proposal may also be of interest to groups such as young people, older persons and people living with disabilities due to the potential long-term impact on local governance and service delivery arrangements. These interests have been considered through the broader engagement and feedback processes undertaken to date.
State the financial implications and where budgetary provisions have been made to support this decision.	Funding for the Local Government Reform programme, including governance arrangements, technical advice, options analysis and development of the Head Start Outline Proposal, has been provided for within existing approved budgets of participating councils. No additional budget allocation is required as a direct result of this decision. Should the proposal progress beyond the outline proposal stage, future programme costs and budget requirements would be considered separately through future council decision-making processes.
Chief Financial Officer review.	The Chief Financial Officer has reviewed this report