AGENDA
Ordinary meeting of the
Governance Committee
Thursday 30 November 2017
Commencing at 9.00am
Council Chamber
Civic House
110 Trafalgar Street, Nelson
Membership: Councillor Ian Barker (Chairperson), Her Worship the Mayor Rachel Reese, Councillors Mel Courtney, Bill Dahlberg (Deputy Chairperson), Paul Matheson, Gaile Noonan, Mike Rutledge and Tim Skinner
Guidelines for councillors attending the meeting, who are not members of the Committee, as set out in Standing Order 12.1:
· All councillors, whether or not they are members of the Committee, may attend Committee meetings
· At the discretion of the Chair, councillors who are not Committee members may speak, or ask questions about a matter.
· Only Committee members may vote on any matter before the Committee
It is good practice for both Committee members and non-Committee members to declare any interests in items on the agenda. They should withdraw from the room for discussion and voting on any of these items.
Governance Committee
30 November 2017
Nil
2. Confirmation of Order of Business
3.1 Updates to the Interests Register
3.2 Identify any conflicts of interest in the agenda
Document number M3044
Recommendation
That the Governance Committee
Confirms the minutes of the meeting of the Governance Committee, held on 26 October 2017, as a true and correct record.
6. Status Report - Governance - 30 November 2017 12 - 13
Document number R8723
Recommendation
That the Governance Committee
Receives the Status Report Governance Committee 30 November 2017 (R8723) and its attachment (A1160658).
8. Statement of Expectation 2018/19 - Bishop Suter Trust 14 - 89
Document number R8697
Recommendation
That the Governance Committee
Receives the report Statement of Expectation 2018/19 - Bishop Suter Trust (R8697) and its attachments (A1512571 and A1870160); and
Recommendation to Council
That the Council
Confirms the general matters to be included in the Bishop Suter Trust Statement of Expectation letter as those identified in paragraphs 4.1 to 4.14 of report R8745; and
Confirms the specific matters to be included in the Bishop Suter Trust Statement of Expectation letter as:
• Development of a five year strategic plan, that;
- Articulates a clear vision for the Suter; and
- Identifies issues, opportunities and costs associated with delivering on that vision, including:
o Opportunities to increase third party funding
o Ensuring the staff have the right skills and capacity
o Demonstrates Commitment to the principals of good asset management
o Optimising the Governance Group’s skillset and blend; and
• Development of a Governance succession plan;
• Cybersecurity; and
• Sustainability; and
• Recovery planning, in particular a request to identify potential hazards and how recovery is planned for these hazards.
9. Statement of Expectation 2018/19 - Nelson Regional Development Agency 90 - 140
Document number R8745
Recommendation
That the Governance Committee
Receives the report Statement of Expectation 2018/19 - Nelson Regional Development Agency (R8745) and its attachments (A1851817 & A1603844).
Recommendation to Council
That the Council
Confirms the general matters to be included in the Nelson Regional Development Agency Statement of Expectation letter as those identified in paragraphs 4.1 to 4.14 of report R8745; and
Confirms the specific matters to be included in the Statements of Expectation letters as:
• Cybersecurity; and
• Sustainability; and
• Recovery planning, in particular a request to identify potential hazards and how recovery is planned for these hazards.
10. Draft Rates Remissions Policy 141 - 147
Document number R8732
Recommendation
That the Governance Committee
Receives the report Draft Rates Remissions Policy (R8732) and its attachments (A1769391 and A1866257); and
Delegates to Council any decision making on the revised Revenue and Financing Policy and the revised Policy on Remission and Postponement of Rates on Maori Freehold Land in view of timing constraints.
Recommendation to Council
That the Council
Approves changes to the Rates Remission Policy for concurrent consultation during the submission process for the Consultation Document to the Long Term Plan 2018-28.
11. Nelmac Letter of Expectation 2018/19 - referral to Council 148 - 149
Document number R8726
Recommendation
That the Governance Committee
Receives the report Nelmac Letter of Expectation 2018/19 - referral to Council (R8726); and
Refers the Nelmac Letter of Expectation directly to the 14 December 2017 Council meeting.
Recommendation
That the Governance Committee
Excludes the public from the following parts of the proceedings of this meeting.
The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:
|
Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
|
1 |
Governance Committee Meeting - Public Excluded Minutes - 26 October 2017 |
Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7. |
The withholding of the information is necessary: · Section7(2)(a) To protect the privacy of natural persons, including that of a deceased person. · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) |
13. Re-admittance of the public
Recommendation
That the Governance Committee
Re-admits the public to the meeting.
Note:
· This meeting is expected to continue beyond lunchtime.
· Lunch will be provided.
· The meeting will adjourn at 10am for a Council Workshop
Governance Committee Minutes - 26 October 2017
Minutes of a meeting of the Governance Committee
Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson
On Thursday 26 October 2017, commencing at 9.00am
Present: Councillor I Barker (Chairperson), Her Worship the Mayor R Reese, Councillors M Courtney, B Dahlberg (Deputy Chairperson), P Matheson, G Noonan and T Skinner
In Attendance: Councillors B McGurk and S Walker, Acting Chief Executive (D Hammond), Group Manager Community Services (C Ward), Senior Strategic Adviser (N McDonald), Manager Communications (P Shattock), and Governance Adviser (L Canton)
Apology: Councillor M Rutledge
1. Apologies
|
Resolved GOV/2017/075 That the Governance Committee Receives and accepts the apology from Councillor Rutledge. Courtney/Dahlberg Carried |
2. Confirmation of Order of Business
There was no change to the order of business.
Attendance: Her Worship the Mayor joined the meeting at 9.02am.
3. Interests
There were no updates to the Interests Register, and no interests with items on the agenda were declared.
Councillor Matheson subsequently declared in interest in item 3 of the public excluded agenda Reappointment of Trustees to the City of Nelson Civic Trust and left the meeting for that item.
4. Public Forum
There was no public forum.
5. Confirmation of Minutes
5.1 7 September 2017
Document number M2887, agenda pages 6 - 11 refer.
|
Resolved GOV/2017/076 That the Governance Committee Confirms the minutes of the meeting of the Governance Committee, held on 7 September 2017, as a true and correct record. Courtney/Dahlberg Carried |
6. Status Report - Governance - 26 October 2017
Document number R8595, agenda pages 12 - 13 refer.
Attendance: Councillor Skinner joined the meeting at 9.05am.
|
Resolved GOV/2017/077 That the Governance Committee Receives the Status Report Governance Committee 26 October 2017 (R8595) and its attachment (A1160658). Dahlberg/Courtney Carried |
7. Chairperson's Report
There was no Chairperson’s Report.
8. Nelson Municipal Band Trust - Council Controlled Organisation Exemption
Document number R8287, agenda pages 14 - 18 refer.
Group Manager Community Services, Chris Ward, presented the report.
Her Worship the Mayor did not participate in the voting on this item.
|
Resolved GOV/2017/078 That the Governance Committee Receives the report Nelson Municipal Band Trust - Council Controlled Organisation Exemption (R8287) and its attachment (A1801559). Noonan/Dahlberg Carried |
|
Recommendation to Council GOV/2017/079 That the Council Approves an exemption to the Nelson Municipal Band Trust for the purposes of Section 6(4)(i) of the Local Government Act 2002, in accordance with Sections 7(3) and 7(6) of the Act and after considering the matters in Section 7(5) of the Act. Noonan/Dahlberg Carried |
9. Exclusion of the Public
|
Resolved GOV/2017/080 That the Governance Committee Excludes the public from the following parts of the proceedings of this meeting. The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows: Dahlberg/Matheson Carried |
|
Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
|
1 |
Governance Committee Meeting - Public Excluded Minutes - 7 September 2017 |
Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7. |
The withholding of the information is necessary: Section 7(2)(a) · To protect the privacy of natural persons, including that of a deceased person. Section 7(2)(i) · To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)
|
The meeting went into public excluded session at 9.06am and resumed in public session at 9.23am.
10. Re-admittance of the Public
|
Resolved GOV/2017/081 That the Governance Committee Re-admits the public to the meeting. Noonan/Dahlberg Carried |
There being no further business the meeting ended at 9.23am.
Confirmed as a correct record of proceedings:
Chairperson
Date
|
|
Governance Committee 30 November 2017 |
REPORT R8723
Status Report - Governance - 30 November 2017
1. Purpose of Report
1.1 To provide an update on the status of actions requested and pending.
2. Recommendation
|
Receives the Status Report Governance Committee 30 November 2017 (R8723) and its attachment (A1160658). |
Attachments
Attachment 1: A1160658 Status Report - Governance Committee ⇩
Item 8: Statement of Expectation 2018/19 - Bishop Suter Trust
|
|
Governance Committee 30 November 2017 |
REPORT R8697
Statement of Expectation 2018/19 - Bishop Suter Trust
1. Purpose of Report
1.1 To provide direction to officers on the Council's expectations for the Bishop Suter Trust for the 2018/19 Statement of Intent.
2. Recommendation
|
Receives the report Statement of Expectation 2018/19 - Bishop Suter Trust (R8697) and its attachments (A1512571 and A1870160); and |
Recommendation to Council
|
Confirms the general matters to be included in the Bishop Suter Trust Statement of Expectation letter as those identified in paragraphs 4.1 to 4.14 of report R8745; and Confirms the specific matters to be included in the Bishop Suter Trust Statement of Expectation letter as: • Development of a five year strategic plan, that; - Articulates a clear vision for the Suter; and - Identifies issues, opportunities and costs associated with delivering on that vision, including: o Opportunities to increase third party funding o Ensuring the staff have the right skills and capacity o Demonstrates Commitment to the principals of good asset management o Optimising the Governance Group’s skillset and blend; and • Development of a Governance succession plan; • Cybersecurity; and • Sustainability; and • Recovery planning, in particular a request to identify potential hazards and how recovery is planned for these hazards. |
3. Background
3.1 The preparation of Statements of Expectation is not required under the Local Government Act. However, it is best practice for the Council to signal to CCOs its expectations for each organisation in the 2018/19 financial year. These expectations can then be considered by these entities to guide their strategic direction and to assist in the development of the Statement of Intent (SOI) for that financial year.
3.2 This also means that Council engages with these entities early and therefore any difference in expectations can be addressed early in the process.
3.3 Council officers maintain good relationships with their colleagues at each of these organisations and are always ready to assist them in the interpretation of Local Government Act requirements and the preparations of their respective SOIs.
4. Discussion
General expectations to be included in SOIs/SOCIs
4.1 SOIs/SOCI (Statements of Corporate Intent) must include a complete set of summary prospective financial statements for at least 3 years (preferably 5 years) i.e. Statement of Comprehensive Income, Statement of Financial Position and cashflow statement.
4.2 SOIs/SOCIs should disclose measures like Earnings before interest and tax (EBIT) and Earnings before interest, tax, depreciation and amortisation (EBITDA) and balance sheet ratios where applicable i.e. CCTOs.
4.3 SOIs must fully comply with Schedule 8 of the Local Government Act. SOCIs must comply with both the related Act e.g. the Port Companies Act and though not a legal requirement, desirably Schedule 8 of the Local Government Act. This is to ensure a consistent approach across all CCOs.
4.4 Compliance with legislation and reporting on Health and Safety matters must be given due emphasis.
4.5 Dividends are to be disclosed along with the dividend payout policies, where applicable. Where dividends are not increasing over time, then an explanation should be provided e.g. increased capital expenditure; the need to reinvest in the business.
4.6 Where the Council makes a financial contribution to the operational costs of the organisation, the CCO should show how it intends to increase non-council revenue streams.
4.7 Capital expenditure and asset management intentions should be included.
4.8 CCOs should use the same information for both managing the business and reporting through to the Council i.e. the information used for setting targets and reporting against them for the SOI should overlap and be a subset of the information used for internal reporting.
4.9 SOIs and other CCO reports should be in a plain style, concise, relevant, accessible and focused on meeting the needs of the shareholding councils and the public they represent. The use of graphs, tables and charts is expected to convey both financial and non-financial information along with trends (past, current and future numbers).
4.10 To be effective the SOI must disclose the performance story for the CCO, providing a clear and succinct understanding of the CCO purpose, the goods and services it delivers and what success looks like. Providing a clear message to the boards on these requirements and other expectations will assist in ongoing improvements in the SOI and reporting.
4.11 The main aspects of the SOI performance story are:
· Strategic context;
· Specifying and presentation of the outcomes framework;
· Main measures and targets, outcomes and objectives;
· Linking the strategy outputs performance together.
4.12 Risk management - Council would like to understand better in the SOI how the Boards are considering and managing risks, including natural hazards.
4.13 Health and Safety - Given the requirements of the Health and Safety at Work Act 2015 (the Act), it is appropriate for Council to set out its expectations in relation to Health and Safety in the CCOs/CCTOs.
4.13.1 Under Section 44 (3) of the Act elected members do not have a duty to exercise due diligence to ensure that any council-controlled organisation complies with its duties or obligations under the Act unless that member is also an officer of that council-controlled organisation.
4.13.2 However as a key funder it is still appropriate to set out expectations of Health and Safety management in CCOs/CCTOs.
4.13.3 The Council expect the Boards of its CCOs to set appropriate Health and Safety strategy and policy, understand the nature of risks/hazards within the business, monitor performance and activities to ensure risk is being managed and review H&S systems and performance.
4.14 Governance performance - In order to aid Council when making decisions on director/trustee remuneration and appointments, the Board should undertake regular evaluation of its own performance.
4.14.1 Council expects these review to be carried out at least once every eighteen months.
4.14.2 The Chair of the Board should reference this evaluation when making recommendations on the re-appointment or recruitment of Board members.
Specific expectations to be included in the Bishop Suter Trust SOI
4.15 The Bishop Suter Trust is entering a new phase of operations, this being the first full year of operation since the re-opening of the gallery in October 2016.
4.16 The Trust needs to demonstrate that it has a clear strategic vision and goals for the Gallery. The Council asks that the Trust develops a five year strategic plan and articulates within its SOI this vision and identifies any transitional issues to be addressed over the next three years. The following topics are expected to be addressed within the context of delivering against the strategic vision:
4.16.1 Opportunities to increase third party funding
4.16.2 Realistic and costed staffing requirements
4.16.3 Commitment to the principals of good asset management
4.16.4 Governance skillset and blend
4.17 As part of this last requirement, the Council would like to see a clear governance succession plan developed over the next 12 months. This should identify how the Board will identify and train/mentor a future Chair of the Trust.
4.18 The Joint Committee of Nelson City and Tasman District Councils identified the following specific matters to be addressed by the joint CCO’s this year. The Committee may wish to extend these to the Bishop Suter Trust.
· To ensure that
Risk Management include cybersecurity; and
· Sustainability (across all CCOs where not currently included), including offsetting carbon emissions, and consideration of wider environmental impacts/outcomes; and
· Recovery planning, in particular a request to identify potential hazards and how recovery is planned for these hazards; and
4.19 The Joint Committee also requested that officers begin a conversation around fair pay and gender equity in employment as part of good employer obligations under the Local Government Act.
5. Options
|
Option 1: accept the matters to be included in the Statement of Expectation letter |
|
|
Advantages |
· Gives clear and early direction to the Board to assist with the preparation of the 2018/19 Statement of Intent. |
|
Risks and Disadvantages |
· none |
|
Option 2: amend the matters to be included in the Statement of Expectation letter |
|
|
Advantages |
· Gives clear and early direction to the Board to assist with the preparation of the 2018/19 Statement of Intent. |
|
Risks and Disadvantages |
· none |
Chris Ward
Group Manager Community Services
Attachments
Attachment 1: A1512571 - Bishop Suter Trust - Statement of Intent 2016-19 ⇩
Attachment 2: A1870160 - Bishop Suter Trust Annual Report 3Oct2017 ⇩
|
Important considerations for decision making |
|
1. Fit with Purpose of Local Government The Bishop Suter Trust delivers local public cultural services to our community. |
|
2. Consistency with Community Outcomes and Council Policy The Suter contributes to the outcome ‘Our communities have opportunities to celebrate and explore their heritage, identity and creativity’ and ‘Our communities have access to a range of social, educational and recreational facilities and activities’ Although not required by the Local Government Act, preparation of Statements of Expectations prior to the SOI/SOCI process is best practice. |
|
3. Risk Providing a Statement of Expectation mitigates the low risk that the CCO develops a Statement of Intent which is not aligned with Council expectations. |
|
4. Financial impact None. |
|
5. Degree of significance and level of engagement This matter is of low significance because this decision is about setting expectations early in the SOI process and there are other decision points along the way. Engagement will occur with the respective Boards but is not required with the wider community. |
|
6. Inclusion of Māori in the decision making process No consultation has been undertaken with Maori in preparation of this report. |
|
7. Delegations The Governance Committee is responsible for Council Controlled Trading Organisations and Council Controlled Organisations. The Governance Committee has the power to make a recommendation to Council on this matter. |
Item 9: Statement of Expectation 2018/19 - Nelson Regional Development Agency
|
|
Governance Committee 30 November 2017 |
REPORT R8745
Statement of Expectation 2018/19 - Nelson Regional Development Agency
1. Purpose of Report
1.1 To provide direction to officers on the Council's expectations for the Nelson Regional Development Agency for the 2018/19 Statement of Intent.
2. Recommendation
|
Receives the report Statement of Expectation 2018/19 - Nelson Regional Development Agency (R8745) and its attachments (A1851817 & A1603844). |
Recommendation to Council
|
Confirms the general matters to be included in the Nelson Regional Development Agency Statement of Expectation letter as those identified in paragraphs 4.1 to 4.14 of report R8745; and Confirms the specific matters to be included in the Statements of Expectation letters as: • Cybersecurity; and • Sustainability; and • Recovery planning, in particular a request to identify potential hazards and how recovery is planned for these hazards. |
3. Background
3.1 The preparation of Statements of Expectation is not required under the Local Government Act. However, it is best practice for the Council to signal to CCOs its expectations for each organisation in the 2018/19 financial year. These expectations can then be considered by these entities to guide their strategic direction and to assist in the development of the Statement of Intent (SOI) for that financial year.
3.2 This also means that Council engages with these entities early and therefore any difference in expectations can be addressed early in the process.
3.3 Council officers maintain good relationships with their colleagues at each of these organisations and are always ready to assist them in the interpretation of Local Government Act requirements and the preparations of their respective SOIs.
3.4 To assist the Committee, the NRDA’s annual report and Statement of Intent 2016-17 are attached (attachments 1 and 2).
4. Discussion
General expectations to be included in SOIs/SOCIs
4.1 SOIs/SOCIs (Statements of Commercial Intent) must include a complete set of summary prospective financial statements for at least 3 years (preferably 5 years) i.e. Statement of Comprehensive Income, Statement of Financial Position and cashflow statement.
4.2 SOIs/SOCIs should disclose measures like Earnings before Interest and Tax (EBIT) and Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) and balance sheet ratios where applicable i.e. CCTOs.
4.3 SOIs must fully comply with Schedule 8 of the Local Government Act. SOCIs must comply with both the related Act e.g. the Port Companies Act and though not a legal requirement, desirably Schedule 8 of the Local Government Act. This is to ensure a consistent approach across all CCOs.
4.4 Compliance with legislation and reporting on Health and Safety matters must be given due emphasis.
4.5 Dividends are to be disclosed along with the dividend payout policies, where applicable. Where dividends are not increasing over time, then an explanation should be provided e.g. increased capital expenditure; the need to reinvest in the business.
4.6 Where the Council makes a financial contribution to the operational costs of the organisation, the CCO should show how it intends to increase non-council revenue streams.
4.7 Capital expenditure and asset management intentions should be included.
4.8 CCOs should use the same information for both managing the business and reporting through to the Council i.e. the information used for setting targets and reporting against them for the SOI should overlap and be a subset of the information used for internal reporting.
4.9 SOIs and other CCO reports should be in a plain style, concise, relevant, accessible and focused on meeting the needs of the shareholding councils and the public they represent. The use of graphs, tables and charts is expected to convey both financial and non-financial information along with trends (past, current and future numbers).
4.10 To be effective the SOI must disclose the performance story for the CCO, providing a clear and succinct understanding of the CCO purpose, the goods and services it delivers and what success looks like. Providing a clear message to the boards on these requirements and other expectations will assist in ongoing improvements in the SOI and reporting.
4.11 The main aspects of the SOI performance story are:
· Strategic context;
· Specifying and presentation of the outcomes framework;
· Main measures and targets, outcomes and objectives;
· Linking strategy outputs and performance together.
4.12 Risk management - Council would like to understand better in the SOI how the Boards are considering and managing risks, including natural hazards.
4.13 Health and Safety - Given the requirements of the Health and Safety at Work Act 2015 (the Act), it is appropriate for Council to set out its expectations in relation to Health and Safety in the CCOs/CCTOs.
4.13.1 Under Section 44 (3) of the Act elected members do not have a duty to exercise due diligence to ensure that any council-controlled organisation complies with its duties or obligations under the Act unless that member is also an officer of that council-controlled organisation.
4.13.2 However as a key funder it is still appropriate to set out expectations of Health and Safety management in CCOs/CCTOs.
4.13.3 The Council expects the Boards of its CCOs to set appropriate Health and Safety strategy and policy, understand the nature of risks/hazards within the business, monitor performance and activities to ensure risk is being managed and review H&S systems and performance.
4.14 Governance performance - In order to aid Council when making decisions on director/trustee remuneration and appointments, the Board should undertake regular evaluation of its own performance.
4.14.1 Council expects these reviews to be carried out at least once every eighteen months.
4.14.2 The Chair of the Board should reference this evaluation when making recommendations on the re-appointment or recruitment of Board members.
Specific expectations to be included in the NRDA SOI
4.15 The Joint Committee of Nelson City and Tasman District Councils identified the following specific matters to be addressed by the joint CCO’s this year. The Committee may wish to extend these to the NRDA.
· To ensure that
Risk Management include cybersecurity; and
· Sustainability (across all CCOs where not currently included), including offsetting carbon emissions, and consideration of wider environmental impacts/outcomes; and
· Recovery planning, in particular a request to identify potential hazards and how recovery is planned for these hazards; and
4.16 The Joint Committee also requested that officers begin a conversation around fair pay and gender equity in employment as part of good employer obligations under the Local Government Act.
5. Options
5.1 No other matters have been identified by staff for specific attention.
6. Options
|
Option 1: accept the matters to be included in the Statement of Expectation letter |
|
|
Advantages |
· Gives clear and early direction to the Board to assist with the preparation of the 2018/19 Statement of Intent. |
|
Risks and Disadvantages |
· none |
|
Option 2: amend the matters to be included in the Statement of Expectation letter |
|
|
Advantages |
· Gives clear and early direction to the Board to assist with the preparation of the 2018/19 Statement of Intent. |
|
Risks and Disadvantages |
· none |
Chris Ward
Group Manager Community Services
Attachments
Attachment 1: A1851817 - Nelson Regional Development Agency Annual Report July 2016-June 2017 ⇩
Attachment 2: A1603844 - Nelson Regional Development Agency Statement of Intent 2016-17 ⇩
|
Important considerations for decision making |
|
1. Fit with Purpose of Local Government The Nelson Regional Development Agency delivers local economic development services to our community. |
|
2. Consistency with Community Outcomes and Council Policy Although not required by the Local Government Act, preparation of Statements of Expectations prior to the SOI/SOCI process is best practice. |
|
3. Risk Providing a Statement of Expectation mitigates the low risk that the CCO develops a Statement of Intent which is not aligned with Council expectations. |
|
4. Financial impact None. |
|
5. Degree of significance and level of engagement This matter is of low significance because this decision is about setting expectations early in the SOI process and there are other decision points along the way. Engagement will occur with the respective Boards but is not required with the wider community. |
|
6. Inclusion of Māori in the decision making process No consultation has been undertaken with Maori in preparation of this report. |
|
7. Delegations The Governance Committee is responsible for Council Controlled Trading Organisations and Council Controlled Organisations. The Governance Committee has the power to make a recommendation to Council on this matter. |
Item 10: Draft Rates Remissions Policy
|
|
Governance Committee 30 November 2017 |
REPORT R8732
Draft Rates Remissions Policy
1. Purpose of Report
1.1 To approve changes to the Rates Remissions Policy for concurrent consultation as part of the Long Term Plan process in 2018.
2. Recommendation
|
Receives the report Draft Rates Remissions Policy (R8732) and its attachments (A1769391 and A1866257); and Delegates to Council any decision making on the revised Revenue and Financing Policy and the revised Policy on Remission and Postponement of Rates on Maori Freehold Land in view of timing constraints. |
Recommendation to Council
|
Approves changes to the Rates Remission Policy for concurrent consultation during the submission process for the Consultation Document to the Long Term Plan 2018-28. |
3. Background
3.1 Council is required to review its policy on Rates Remissions at least once every six years under the Local Government Act 2002. The policy was reviewed in 2016 but there are two further changes proposed in this report. It is therefore proposed to review and consult on the Rates Remission Policy as part of the Long Term Plan process.
3.2 Two areas of change to the Rates Remission Policy are included in this report. Another, relating to Maori Freehold Land, is still in progress and is proposed to be delegated to Council in order to have a timely approval to feed into the Long Term Plan development.
3.3 An adopted Revenue and Financing Policy is also required for the Long Term Plan and is proposed to be delegated to Council for timing reasons.
4. Discussion
4.1 The first change proposed, is to formalise the existing practice of discounting for early payment of rates. This has been offered for some time, and is included in the Funding Impact Statement and rates resolution, but recent legal advice suggests it would be preferable to have this practice included in the policy (see Attachment 1).
4.2 The amendment to the section for community, sporting and other organisations is to make it explicit that registered Community Housing Providers (CHPs) are eligible to apply for a rates remission. This discount has been applied for by, and granted to, Abbeyfield for a number of years but the policy around CHPs is not as clear as it could be. This revision to the policy will make the intention clear and enable officers to promote the opportunity to other eligible providers.
4.3 Currently this would include the following three registered providers:
· Abbeyfield
· Nelson Tasman Housing Trust; and
· Habitat for Humanity.
4.4 A remission for Kaumātua housing at Whakatū Marae is an addition to the policy. It is currently rated separately from the marae as freehold land but officers consider it delivers substantially the same community benefits as other social housing provision. The marae is planning to transfer the Kaumātua housing to the marae under Te Ture Whenua Māori Act 1993 in mid-2018. The amended provision in the policy is included in case that transfer does not occur.
4.5 Work on revisions to the Policy on Remission and Postponement of Rates on Maori Freehold Land is still underway, as officers engage with affected landowners. In order to have approval of the approach before workshops on the Long Term Plan in February 2018, it is proposed to delegate decision making to the 14 December Council meeting.
4.6 Likewise, for timing reasons, it is proposed to delegate decision making on revisions to the Revenue and Financing Policy to Council. The Long Term Plan must include an adopted Revenue and Financing Policy and officers are currently working on amendments that were not ready in time for this meeting.
5. Options
5.1 It is recommended these amendments to the Rates Remission Policy be approved for consultation. The Committee also has the option of not recommending the changes to Council, for either matter. In the case of the early payment amendment, this would be counter to legal advice.
5.2 It is further recommended that decisions on a revised Policy on Remission and Postponement of Rates on Maori Freehold Land and Revenue and Financing Policy be delegated to Council for timing reasons.
Nikki Harrison
Group Manager Corporate Services
Attachments
Attachment 1: Policy on Rates Remission for Community, Sporting and Other Organisations (A1769391) ⇩
Attachment 2: Discount for Early Payment of Rates (A1866257) ⇩
|
Important considerations for decision making |
|
1. Fit with Purpose of Local Government The decisions in this report will allow Council to support groups providing cost effective delivery of services to the community and encourage more efficient processing of rates. |
|
2. Consistency with Community Outcomes and Council Policy The decisions in this report supports the Community Outcomes that “Our communities have access to a range of social, educational and recreational facilities and activities”. |
|
3. Risk Amending the Rates Remission Policy reduces risk by providing greater clarity about eligibility for various remissions. |
|
4. Financial impact The cost of changes to the social housing element of the policy would be $12,000 per year if all eligible groups took up the opportunity. There would be no new financial impact from including the section on early payment of rates. |
|
5. Degree of significance and level of engagement This matter is of low significance as it impacts a small number in the community and has a small financial impact. It will be consulted on concurrently with Long Term Plan consultations. |
|
6. Inclusion of Māori in the decision making process Maori have not been consulted on this report. |
|
7. Delegations The Governance Committee has the responsibility for considering rating systems and policies. The Governance Committee has the power to make a recommendation to Council on this matter. |
Item 10: Draft Rates Remissions Policy: Attachment 1
Rates remission for community, sporting and other organisations
Objective
The
remission of rates for community, sporting and other organisations is To facilitate the ongoing provision of non-commercial community services and non-commercial recreational opportunities.
The purpose of granting rates remission to an organisation is to achieve following general social wellbeing objectives:
• Recognise the public good contribution to community wellbeing made by such organisations and
• Assist the organisation’s survival and
• Make membership of the organisation more accessible to the general public, particularly disadvantaged groups including children, youth, young families, aged people and economically disadvantaged people.
Or to achieve the following social housing objectives:
• Facilitate the ongoing provision of social housing in Nelson by registered Community Housing Providers or
• Facilitate provision of kaumatua housing at Whakatu Marae.
Conditions and criteria
Council supports applications for financial assistance by any organisation not conducted for private profit. The principal object of the organisation should be to promote the development of Nelson City and provide for at least one of the following: the public, community housing, recreation, health, enjoyment, instruction, sport or any form of culture, or for the improving or developing of amenities, where the provisions of any one of these areas is to the benefit of the city.
For applicants other than social housing or kaumatua housing providers the following information should be included in support of an application:
• Evidence that other areas of assistance have been investigated if available,
• That there is a need for assistance,
• That there has been a reasonable effort made to meet the need by the organisation itself,
• The organisation’s most recent financial accounts.
For Social Housing Providers the following information is required:
• Evidence that the organisation is a registered Community Housing Provider with the Community Housing Regulatory Authority
• Evidence that the property for which rates remission is sought is used for social housing and/or affordable rental housing, and is neither vacant nor commercial property
• A copy of the organisation’s current Rules or Constitution that sets out the purpose of the organisation,
• The Social Housing Provider’s most recent financial accounts
For Kaumatua housing providers the following information is required:
• A copy of the most recent financial accounts for the Kaumatua housing
Procedure
The organisation must apply to the Council for a remission on or before 31
August if the applicant wishes the remission to apply to rates payable in that
year.
An application for remission will apply for a maximum of three years and all applications will expire on 30 June following the revaluation of all properties in the city. A new application must be made if continued assistance is required.
Each application will be considered by Council on its merits, and provision of a remission in any year does not set a precedent for similar remissions in any future year.
Remission is granted only in respect of those parts of the rates that are based on land value. The remission is 50% of the rates payable.
Rates remissions will be made by passing a credit to the applicant’s rates assessment.
No rate remission under this part of the Policy will be available to an organisation that is in receipt of a mandatory rate remission.
Decisions on applications under this Policy will be made by the Group Manager, Corporate Services [or according to the Delegations Register].
Item 10: Draft Rates Remissions Policy: Attachment 2
Discount for early payment of rates
Objective
Council recognizes the cash flow advantage and reduced processing costs that result from early payment of rates and offers a discount to encourage this outcome. This discount is to be set each year in the Annual Plan and will be applied, if the criteria are met, without requiring a ratepayer to make an application.
Relevant Legislation
2. Local Government (Rating) Act 2002, section 55 Local Government Act 2002, section 109
Conditions and criteria
3. This policy applies to all ratepayers in the Nelson City Council area.
4. A discount will be allowed for early payment of rates in compliance with the following conditions:
5. · The discount will be allowed for any ratepayer who pays the total annual rates as specified on the rates assessment, by the last date for payment for the first instalment;
6. · The discount will not apply to volumetric water charges;
7. · The discount will be at a rate fixed annually by Council resolution.
Procedure
· Council will process early payment of the current year’s rates in accordance with this policy.
A1866257 – Discount for Early Payment of Rates Page 1 of 1
Item 11: Nelmac Letter of Expectation 2018/19 - referral to Council
|
|
Governance Committee 30 November 2017 |
REPORT R8726
Nelmac Letter of Expectation 2018/19 - referral to Council
1. Purpose of Report
1.1 To refer the Nelmac Letter of Expectation 2018/19 directly to Council and not exercise the Governance Committee’s delegation in this regard.
2. Summary
2.1 The Governance Committee has the delegation to recommend Letters of Expectations for approval for Nelson City Council Council Controlled Trading Organisations (CCTOs) and Council Controlled Organisations (CCOs). However, there is not enough time for the Governance Committee to consider the Letter of Expectations 2018/19 for Nelmac, as a workshop with Council to discuss the issues is only being held on 28 November.
3. Recommendation
|
Receives the report Nelmac Letter of Expectation 2018/19 - referral to Council (R8726); and Refers the Nelmac Letter of Expectation directly to the 14 December 2017 Council meeting. |
4. Background
4.1 The Governance Committee has the delegated authority to recommend CCO/CCTO Letters of Expectations to the Council for approval. Nelmac’s AGM is on 22 November 2017, followed by a Nelmac workshop with Council on 28 November 2017. This does not allow enough time for the Governance Committee to approve the Nelmac Letter of Expectation and make a recommendation to Council.
4.2 Councillors are already heavily committed with meetings and Long Term Plan workshops, therefore in the interests of timeliness, officers believe that it would be most efficient for the Governance Committee to resolve to refer the matter directly to the 14 December 2017 Council meeting.
5. Options
|
Option 1: Accept the referral of delegation |
|
|
Advantages |
· The matters in the Statement of Expectation are considered in a timely manner. |
|
Risks and Disadvantages |
· None known. |
|
Option 2: Refuse to accept the referral of delegation |
|
|
Advantages |
· None known |
|
Risks and Disadvantages |
· The Statement of Expectation would not be considered until the next meeting of the Governance Committee, currently scheduled for 8 March 2018. |
6. Conclusion
6.1 It is recommended that the Governance Committee refer its delegation to the Council meeting of 14 December 2017.
Elaine Stephenson
Governance Adviser
Attachments
