Agenda of Extraordinary Council Meeting

Annual Plan Deliberations item: 5.1

24 May 2022

TITLE:	Council Deliberations on the Annual Plan 2022/23 Consultation Document and Supporting Information
From:	Nicola Hartwell, Corporate Planner and Kyla Carlier, Corporate Strategy Manager
Authorised by Group Manager/s:	Bruce Howse, Pou Taumatua – Group Manager Corporate Services, on 18 May 2022

Executive summary/Whakarāpopototanga

The purpose of this report is to provide background information and present staff advice and recommendations, as part of council’s deliberation on the submissions received on the Annual Plan 2022/23 Consultation Document and supporting information, and final considerations presented as part of the development of the Annual Plan 2022/23.

This is the first annual plan process carried out following the adoption of the Long Term Plan 2021-2031 last year, and is an opportunity to make any adjustments required to the budget. The annual plan is focussed on any changes from the Long Term Plan.

Recommendations

1. That the report ‘Council Deliberations on the Annual Plan 2022/23 Consultation Document and Supporting Information ’ by Nicola Hartwell, Corporate Planner and Kyla Carlier, Corporate Strategy Manager dated 26 April 2022, be received.

2. That council support the provision of an additional $1.7M toward design and build of a maritime vessel to replace the current vessel (the Waikare), for a total cost of $3.3M, as proposed in the Annual Plan 2022/23 supporting information.

3. That council support borrowing the full amount of $3.3M required to design and build a maritime vessel that will replace the current vessel (the Waikare), and repay it over 15 years via the Council Services Rate beginning in 2023/24, as proposed in the Annual Plan 2022/23 supporting information.

4. That council support the $1.6M set aside for the design and build of the maritime vessel be placed in council’s Long Term Fund, as proposed in the Annual Plan 2022/23 supporting information.

5. That council supports the reallocation of CityLink funds set aside in 2022/23 year for T2 lanes (now delayed), and an increase to the targeted Whangārei transport rate of $188,216 per year from 2022/23, to maintain and improve the services provided by the Whangārei CityLink, as proposed in the Annual Plan 2022/23 supporting information.

6. That council supports an increase in total rates revenue from the 13.79% stated in the Long Term Plan 2021/31 to 13.89% (0.1%) for 2022/23.

7. That Bruce Howse, Group Manager – Corporate Services be given delegated authority to approve any consequential amendments to the final Annual Plan 2022/23 as a result of council decisions on submissions and any minor accuracy and grammatical amendments.

8. That council notes that the amounts set out in the report are based on best estimate forecasts at the time of writing, and that the CEO be given delegated authority to approve changes required to revise the financial statement and rating information within the final Annual Plan 2022/23 to give effect to the council’s deliberations, with final amounts presented for council approval in June 2022.

9. That council does not make any changes to the Annual Plan 2022/23 as a result of the submissions received on these topics: Genetically modified organism/engineering; marine biosecurity fee.

Considerations

1. Environmental Impact

The initiatives presented as part of this annual plan will enable more efficient delivery of services, and reduced vehicle emissions, with otherwise minimal environmental impact.

2. Community views

A process of consultation has been carried out to inform the recommendations set out in this report. A summary of this consultation and the feedback received is included in this report, and in attachment 1 to this report. Consultation was sought to inform council’s decisions on a specific set of proposals. A total of 13 written submissions and one verbal submission were received. Māori impact statement

The implementation of the plan change has the potential for positive effects for all local people, including Māori. There are no known particular impacts on Māori which are different from general ratepayers or users associated with the proposals.

3. Financial implications

Financial impacts or implementation issues are addressed in recommendations included within this report. Implementation issues

4. Significance and engagement

Section 76AA of the Local Government Act 2002 (LGA) directs that council must adopt a policy setting out how significance will be determined, and the level of engagement that will be triggered. This policy assists council in determining how to achieve compliance with LGA requirements in relation to decisions.

The proposals set out in the Annual Plan 2022/23 Consultation Document triggered council’s significance and engagement policy, and the process of consultation and engagement has now been carried out. The results of this engagement have been summarised in this document to inform council’s deliberations and decision-making process. The process of deliberations assists council in achieving compliance with sections 77 of the LGA.

5. Policy, risk management and legislative compliance

Consultation on the annual plan proposals has been carried out pursuant to sections 95 and 95A of the LGA and in accordance with the principles of consultation (section 82 LGA) Consideration of submissions through the process of deliberations will achieve compliance with section 77 of the LGA (Requirements in relation to decisions) and with council’s Significance and Engagement Policy, in particular ‘We will consult when we are required to by law, when a proposal is considered significant, and when we need more information on options for responding to an issue’.

A decision by council to include a new proposal in this annual plan that has not been through the process of consultation would require assessment against council’s Significance and Engagement policy. If it were determined under that policy that consultation was required, it is unlikely that this would be achievable in a timeframe that would allow adoption of the plan before the end of the financial year, resulting in high risk of breach of Section 95(1) of the LGA. Failure to consult in such an instance would also require consideration of Section 80 of the LGA (Identification of inconsistent decisions).

If the new proposals are not supported by council for inclusion in the plan during the process of deliberations, further public consultation will likely be required, which would not be achievable before the end of the financial year.

Background/Tuhinga

The purpose of this annual plan is to set out any differences from what was proposed in the Long Term Plan 2021-2031, and to highlight the impact on council’s budget and regional rates. Annual plan consultation processes focus on these proposed changes. The proposals add an extra $1.7 million in capital expenditure funded by lending from the Local Government Funding Agency, and $188,216 of additional operating expenditure. This will increase the total region-wide rate in 2022/23 from the 13.79% approved in the LTP 2021/31, to 13.89% (0.1%).

The Whangārei transport rate will increase by approximately $4.80 per Whangārei ratepayer, for a year-on-year average increase of just over approximately $65 for Whangarei ratepayers. There will be an increase in the region-wide rate of approximately $0.80 per ratepayer beginning 2023/24.

Consultation overview

Council invited feedback on proposals for the Annual Plan 2022/23 and User Fees and Charges during a month-long period running from 26 March to 29 April 2022. The consultation processes for both documents were carried out in tandem. This is the usual process for these annual reviews and offers synergies in terms of resources as well as producing a complete budget.

An annual plan consultation document was produced that summarised the proposals, with more detailed information and financials to support the proposals included in a supporting information document. Thirteen submissions were received during the consultation period, which included feedback on both consulted and non-consulted topics.

Members of the community were offered an opportunity to talk to councillors about the proposals during the consultation period, which occurred on 13 April 2022, and at which council received one oral submission.

Consulted Topics

Replacing the Waikare – Capex $1.7M for a total spend of $3.3M, to be borrowed and repaid

There were six submissions (five written, one oral) received on additional expenditure for the construction of a new vessel. Four were in favour of the proposal, and two against. One submitter in favour requested council keep a close eye on the feasibility of having an electric or hybrid vessel while another suggested council delay the project until supply chains can allow for more efficient production. One submission made against the proposal commented that the costs were nearly double, and there was nothing to indicate the total cost of construction or life expectancy of the vessel. The other submission against the proposal suggest council should not accept the increased cost and look at other options.

No submissions made comment on the proposed change to the funding model for the vessel, where council proposed to invest the original $1.6M set aside for the vessel, borrow the full $3.3M cost of the design and build, and repay this from the Council Services Rate.

Council has entered into a design contract for the construction of the vessel, with funds already set aside and invested in the project. The total construction cost is fixed by the contract, with life expectancy of the vessel in excess of 20 years.

Assessment of an electric/hybrid vessel was carried out and it has been determined that this is not yet feasible in terms of cost and fitness for purpose, however the new vessel will have emission reducing technology where achievable. Delaying the project may result in further increased cost, and delay delivery of service. Council may choose to adopt new technology once readily available.

Staff recommend that council proceed as proposed.

Whangārei CityLink – Opex $188k

There were six submissions received on the proposed increased operational spend for CityLink bus services. One submitter supported the proposal. Three submitters had no objection to the additional spend, but questioned the rate being targeted to all Whangārei District ratepayers, and requested the rate be targeted to ratepayers who live within walking distance of the bus service/urban ratepayers. One submitter recommended park and ride facilities and utilising rail corridors in rural areas to create a rail trail/commute pathways to the city. One submitter requested a regular Whangārei to Kaikohe service.

While ratepayers living in close proximity to bus routes may derive direct benefit from the CityLink service, there are indirect benefits to the wider Whangārei district including lower demand for parking, reduced emissions and provision of basic services to those without other means of transport. The Whangārei transport rate does not distinguish between urban and rural ratepayers, and a new rating model would be required if a more geographically targeted approach was taken, making the rate administratively inefficient.

Staff recommend that council proceed as proposed.

Other Comments

Other submissions were received on topics that were outside of the scope of the annual plan consultation topics. Out of those submissions, two related to topics under the jurisdiction of the Whangārei District Council, three related to genetically modified organisms, one related to the marine biosecurity fee, and one raised a number of miscellaneous items.^{^[1]} These topics are summarised in the Summary of Submissions report, attached. Where appropriate, submitter comments have been passed on to the Whangārei District Council and/or relevant staff members for follow up.

Attachments/Ngā tapirihanga

Attachment 1: Annual Plan 2022/23 and User Fees and Charges summary of submissions ⇩

Attachment 2: Annual Plan 2022/23 and User Fees and Charges full submission book ⇩

Annual Plan Deliberations item: 5.2

24 May 2022

TITLE:	Council deliberations on the User Fees and Charges 2022/23
From:	Robyn Broadhurst, Policy Specialist
Authorised by Group Manager/s:	Bruce Howse, Pou Taumatua – Group Manager Corporate Services, on 17 May 2022

Executive summary/Whakarāpopototanga

This report provides background information and presents staff advice and recommendations to inform council’s deliberation on the Draft User Fees and Charges 2022/23 and Statement of Proposal.

Staff recommend council support the Draft User Fees and Charges 2022/23 as consulted on, inclusive of the increased Pilotage and Shipping Navigation and Safety Services Fees and a 2.4% inflationary increase, and the addition of the removal of a note under both tables 3.6.2 and 3.6.4 relating to the number of staff attending a site visit.

Recommendations

1. That the report ‘Council deliberations on the User Fees and Charges 2022/23’ by Robyn Broadhurst, Policy Specialist and dated 27 April 2022, be received.

2. That council supports the inflationary increase of 2.4% to fees and charges contained in the User Fees and Charges 2022/23, as set out in the schedule.

3. That council supports the Draft User Fees and Charges 2022/23 as consulted and with the additional amendment set out in recommendation 4, and direct staff to prepare the final user fees and charges for council adoption in June 2022.

4. That council supports the removal of the notes relating to tables 3.6.2 and 3.6.4 ‘Where there is a need for two officers to attend, the costs of both officers will be recovered’.

5. That Bruce Howse, Group Manager – Corporate Services be given delegated authority to approve any consequential amendments as a result of council decisions on submissions and any minor accuracy and grammatical amendments.

Considerations

1. Significance and engagement

Engagement with the community has now been carried out. The process of deliberations assists council in achieving compliance with section 77 of the LGA.

2. Policy, risk management and legislative compliance

Consultation on the Draft User Fees and Charges 2022/23 has been carried out pursuant to section 150 of the LGA and in accordance with section 83 of the LGA.

Consideration of submissions through the process of deliberations will achieve compliance with section 77 of the LGA – Requirements in relation to decisions – and with council’s Significance and Engagement Policy, in particular ‘We will consult when we are required to by law, when a proposal is considered significant, and when we need more information on options for responding to an issue’.

Background/Tuhinga

Consultation was carried out on council’s Draft User Fees and Charges 2022/23 in conjunction with the process of consultation for the Annual Plan 2022/23. This is the usual process for these annual reviews and offers efficiencies in terms of staff resources and public participation as well as producing a complete budget. Consultation involved the production of a full draft user fees and charges schedule, complete with a statement of proposal that listed all proposed changes, including increases to Pilotage and Shipping Navigation and Safety Services Fees and a 2.4% inflationary increase.

Feedback on the proposals was sought during a month-long period from 26 March – 29 April 2022. A total of thirteen written submissions and one oral submission were received during the consultation period, with six directly commenting on the draft user fees and charges. The feedback is summarised in the summary of submissions document included as an attachment to the item titled “Council Deliberations on the Annual Plan 2022/23 Consultation Document and Supporting Information”, in this agenda. For completeness, a full submissions book is also included as an attachment to the item abovementioned.

The annual review of user fees and charges ensures that changes can be made regularly so that the charges do not become outdated. The draft schedule for 2022/23 proposed:

· Increasing the Pilotage and Shipping Navigation and Safety Services Fees;

· Inflationary increase of 2.4%; and

· Several minor amendments for clarity.

For a full list of amendments, please see the Statement of Proposal – Draft User Fees and Charges 2022/23 included as an Attachment 1 to this item.

Feedback received

The submission process allowed feedback in an open question rather than directed to the proposed changes. This was due to the fact the main proposed change, being the increase to Pilotage and Shipping Navigation and Safety Services Fees, only directly affected a handful of stakeholders.

No comments were received on the increase to Pilotage and Shipping Navigation and Safety Services Fees, nor the inflationary increase.

The six submissions received commented on the user fees and charges in general as follows:

· One individual submitter commented that they wished we would have clearly and simply listed all proposed changes item by item to save having to go through the document to find them and therefore refrained from either agreeing or disagreeing;

· One individual submitter commented that user pays: higher dog fees, introduce cat fees;

· Two individual submitters commented “OK” and “No objections” respectively;

· One submitter acting on behalf of the Kerikeri Cruising Club commented on the 35/65 split for the biosecurity fee stating that it was unfair and should ideally be scrapped, however they provided alternative solutions (please see full submission for details). Submitter also commented on the navigation bylaw charge as being inequitable, particularly considering the numbers of trailer boats significantly outweighs moored recreational vessels.

· One submitter acting on behalf of Federated Farmers commented that they support a high proportion of fees and charges funding council services to reduce the reliance on rates, and that they were in support of maintaining the current compliance monitoring costs associated with dairy farm monitoring, which incentivises farmers to have fully compliant systems that are charged lower under the charging schedule. However, submitter questioned the need for one or two officers to attend and where both costs will be recovered, asking for an amendment to provide some more clarity with regards to situations where two officers would be necessary. Submitter further commented that they suggest this clause (relating to a second officer) is removed from the schedule to ensure that diary inspection fees are reflective of the listed set charges.

It is noted that the Statement of Proposal, which provided the basis for consultation, clearly listed all proposed changes and the reasons for these changes, including the section the change related to, and that dog/cats fees are outside of the jurisdiction of council.

Submissions relating to the split of the biosecurity fee and the navigation bylaw charge are considered out-of-scope of this consultation and have been addressed and decided upon through previous processes. Any changes to these specific topics would require additional workshopping and subsequent consultation and would not be achievable this late in the process.

Regarding the submission relating to additional staff members attending dairy site visits, the clause ‘Where there is a need for two officers to attend, the costs of both officers will be recovered’ under both tables 3.6.2 and 3.6.4 was originally included as a Health and Safety measure for staff. However, this is not common practice and can therefore be removed as requested with no material change to charges resulting, or impact on council’s Health and Safety obligations.

Staff recommend that council supports the user fees and charges as consulted on, with the additional amendment of removing the note ‘Where there is a need for two officers to attend, the costs of both officers will be recovered’ under both tables 3.6.2 and 3.6.4, resulting from these submissions.

Attachments/Ngā tapirihanga

Attachment 1: Draft User Fees and Charges 2022 ⇩

Annual Plan Deliberations ITEM: 5.2

24 May 2022Attachment 1

PDF Creator

[1] There is a lack of facilities for indoor bowls and table tennis.• Fog and topography would compromise the proposed future airport sites in Ruatangata.•Did not support daylight savings and stressed the detrimental impacts it had on people and wildlife.•Did not support fencing off creeks and rivers.•Suggested a relationship between the use of fire bans and droughts.