That the Council

1.     Confirms the minutes of the meeting of Council, held on 4 June 2019, as a true and accurate record.

That the Council

1.     Receives the report Adoption of the Annual Plan 2019/20, amendment to the Long Term Plan 2018-28 and setting of the rates for 2019/20   (R10278) and its attachments (A2213052, A2212773 and A2121185); and

2.     Adopts the Annual Plan 2019/20 (A2213052) pursuant to Section 95 of the Local Government Act 2002; and

3.     Delegates the Mayor and Chief Executive to make any necessary minor editorial amendments prior to the release of the Annual Plan 2019/20 to the public; and

4.     Sets the following rates under the Local Government (Rating) Act 2002, on rating units in the district for the financial year commencing on 1 July 2019 and ending on 30 June 2020.

The revenue approved below will be raised by the rates and charges that follow.

Revenue approved:

General Rate                                                $40,737,232

Uniform Annual General Charge                  $9,043,450

Stormwater and Flood Protection Charge  $6,096,208

Waste Water Charge                                     $8,719,184

Water Annual Charge                                   $3,705,207

Water Volumetric Charge                             $8,645,483

Clean Heat Warm Homes and Solar Saver     $402,996

Rates and Charges (excluding GST)         $77,349,760

Goods and Services Tax
(at the current rate)                                   $11,602,464

Total Rates and Charges                            $88,952,224

The rates and charges below are GST inclusive.

(1) General Rate

A general rate set under section 13 of the Local Government (Rating) Act 2002, assessed on a differential land value basis as described below:

•    a rate of 0.51346 cents in the dollar of land value on every rating unit in the “residential – single unit” category.

•     a rate of 0.51346 cents in the dollar of land value on every rating unit in the “residential empty section” category.

•     a rate of 0.56481 cents in the dollar of land value on every rating unit in the “single residential unit forming part of a parent valuation, the remainder of which is non-rateable” category. This represents a plus 10% differential on land value.

•    a rate of 0.56481 cents in the dollar of land value on every rating unit in the “multi residential” category. This represents a plus 10% differential on land value.

•     a rate of 1.42382 cents in the dollar of land value on every rating unit in the “commercial – excluding inner city and Stoke commercial” subject to 100% commercial and industrial (occupied and empty) category. This represents a plus 177.3% differential on land value.

•     a rate of 1.19636 cents in the dollar of land value on every rating unit in the “commercial – excluding inner city and Stoke commercial” subject to 25% residential and 75% commercial” category. This represents a plus 133% differential on land value.

•     a rate of 0.96890 cents in the dollar of land value on every rating unit in the “commercial – excluding inner city and Stoke commercial” subject to 50% residential and 50% commercial” category. This represents a plus 88.7% differential on land value.

•     a rate of 0.74092 cents in the dollar of land value on every rating unit in the “commercial – excluding inner city and Stoke commercial” subject to 75% residential and 25% commercial” category. This represents a plus 44.3% differential on land value.

·     a rate of 1.87208 cents in the dollar of land value on every rating unit in the “commercial inner city” subject to 100% commercial and industrial (occupied and empty) category. This represents a plus 264.6% differential on land value.

·     a rate of 1.53268 cents in the dollar of land value on every rating unit in the “commercial inner city subject to 25% residential and 75% commercial” category. This represents a plus 198.5% differential on land value.

·     a rate of 1.19277 cents in the dollar of land value on every rating unit in the “commercial inner city subject to 50% residential and 50% commercial” category. This represents a plus 132.3% differential on land value.

·     a rate of 0.85337 cents in the dollar of land value on every rating unit in the “commercial inner city subject to 75% residential and 25% commercial” category. This represents a plus 66.2% differential on land value.

·     a rate of 1.81765 cents in the dollar of land value on every rating unit in the “Stoke commercial subject to 100% commercial and industrial (occupied and empty)” category. This represents a plus 254% differential on land value.

·     a rate of 1.49160 cents in the dollar of land value on every rating unit in the “Stoke commercial subject to 25% residential and 75% commercial” category. This represents a plus 190.5% differential on land value.

·     a rate of 1.16555 cents in the dollar of land value on every rating unit in the “Stoke commercial subject to 50% residential and 50% commercial” category. This represents a plus 127% differential on land value.

·     a rate of 0.83951 cents in the dollar of land value on every rating unit in the “Stoke commercial subject to 75% residential and 25% commercial” category. This represents a plus 63.5% differential on land value.

·     a rate of 0.33375 cents in the dollar of land value on every rating unit in the “rural” category. This represents a minus 35% differential on land value.

·     a rate of 0.46211 cents in the dollar of land value on every rating unit in the “small holding” category. This represents a minus 10% differential on land value.

(2) Uniform Annual General Charge

A uniform annual general charge under section 15 of the Local Government (Rating) Act 2002 of $435.22 per separately used or inhabited part of a rating unit.

(3) Stormwater and Flood Protection Charge

A targeted rate under section 16 of the Local Government (Rating) Act 2002 of $330.47 per rating unit, this rate is payable by all ratepayers excluding rural rating units, rating units east of the Gentle Annie saddle, Saxton’s Island and Council’s stormwater network.

(4) Waste Water Charge

A targeted rate for waste water disposal under section 16 of the Local Government (Rating) Act 2002 of:

·     $477.93 per separately used or inhabited part of a residential, multi residential, rural and small holding rating units that is connected either directly or through a private drain to a public waste water drain.

·     For commercial rating units, a waste water charge of $119.48 per separately used or inhabited part of a rating unit that is connected either directly or through a private drain to a public waste water drain. Note:  a “trade” waste charge will also be levied.

(5) Water Annual Charge

A targeted rate for water supply under Section 16 of the Local Government (Rating) Act 2002, of:

Water charge (per connection)                        $200.40

(6) Water Volumetric Rate

A targeted rate for water provided under Section 19 of the Local Government (Rating) Act 2002, of:

Price of water:

Usage up to 10,000 cu.m/year         $2.137 per m³

Usage from 10,001 – 100,000
cu.m/year                                           $1.883 per m³

Usage over 100,000 cu.m/year        $1.486 per m³

Summer irrigation usage over
10,000 cu.m/year                              $2.010 per m³

(7) Clean Heat Warm Homes

A targeted rate per separately used or inhabited part of a rating unit that has been provided with home insulation and/or a heater to replace a non-complying solid fuel burner under Section 16 of the Local Government (Rating) Act 2002 in accordance with agreement of the original ratepayer, of:

·     For properties levied the Clean Heat Warm Homes as a result of agreements entered into after 1 July 2011, the targeted rate for each year for 10 years will be the total cost of the installed works excluding GST, divided by 10, plus GST.

·     For properties levied the Clean Heat Warm Homes as a result of agreements entered into prior to 1 July 2011 the targeted rate of:

(8) Solar Hot Water Systems

A targeted rate for any separately used or inhabited parts of a rating unit that has been provided with financial assistance to install a solar hot water system under Section 16 of the Local Government (Rating) Act 2002 in accordance with agreement of the original ratepayer, of the following factors on the extent of provision of service (net cost of the work including GST after deducting EECA grant, plus funding cost):

·     0.14964 (including GST) for agreements entered into prior to 1 July 2011, multiplied by the Net Cost of the Work adjusted for any increased GST.

·     0.13847 (including GST) for agreements entered into after 1 July 2011 multiplied by the Net Cost of the Work.

Other Rating Information:

Due Dates for Payment of Rates

The above rates (excluding water volumetric rates) are payable at the Nelson City Council office, 110 Trafalgar Street, Nelson and shall be payable in four instalments on the following dates:

Rates instalments not paid on or by the Last Date for payment above will incur penalties as detailed in the section “Penalty on Rates”.

Due Dates for Payment of Water Volumetric Rates

Residential water volumetric rates are payable at the Nelson City Council office, 110 Trafalgar Street, Nelson and shall be payable on the following dates:

Special (final) water volumetric rates will be payable 14 days from the invoice date of the special (final) water reading as shown on the water invoice.

Commercial water volumetric rates are payable at the Nelson City Council office, 110 Trafalgar Street, Nelson and shall be payable on the following dates:

Penalty on Rates

Pursuant to Sections 57 and 58 of the Local Government (Rating) Act 2002, the council authorises the following penalties on unpaid rates (excluding volumetric water rate accounts) and delegates authority to the Group Manager Corporate Services to apply them:

·     a charge of 10% of the amount of each rate instalment remaining unpaid on the penalty date as shown in the above table and also shown on each rate instalment notice.

·     a charge of 10% will be added on 5 July 2019 to any balance from a previous rating year (including penalties previously charged) remaining outstanding on 4 July 2019.

·     a further additional charge of 10% will be added on 8 January 2020 to any balance from a previous rating year (including penalties previously charged) remaining outstanding on 7 January 2020.

Penalty on Water Volumetric Rates

Pursuant to Sections 57 and 58 of the Local Government (Rating) Act 2002, the council authorises the following penalties on unpaid volumetric water rates and delegates authority to the Group Manager Corporate Services to apply them:

•      a charge of 10% of the amount of each volumetric water rate account remaining unpaid on the penalty date as shown in the above table and also shown on each volumetric water rate account.

Penalty Remission

In accordance with Council’s rate remission policy, the Council will approve the remission of the penalty added on instalment one due to late payment provided the total annual rates are paid in full by 20 November 2019. If full payment of the annual rates is not paid by 20 November 2019 the penalties relating to the first instalment outlined above will apply.

The above penalties will not be charged where Council has agreed to a programme for payment of outstanding rates.

The Group Manager Corporate Services is given discretion to remit rates penalties either in whole or part in accordance with Council’s approved rates remission policy, as may be amended from time to time.

Discount on Rates

Pursuant to Section 55 of the Local Government (Rating) Act 2002, the Council will allow a discount of 2.0 percent of the total rates (excluding volumetric water rates) where a ratepayer pays the year’s rates in full on or before the Last Date for Payment for instalment one being 20 August 2019.

Payment of Rates

The rates shall be payable at the Council offices, Civic House, 110 Trafalgar Street, Nelson between the hours of 8.30am to 5.00pm Monday, Tuesday, Wednesday and Friday and 9.00am to 5.00pm Thursday.

Where any payment is made by a ratepayer that is less than the amount now payable, the Council will apply the payment firstly to any rates outstanding from previous rating years and then proportionately across all current year rates due; and

5.     Adopts the amendments to the Long Term Plan 2018-28 (A2212773) pursuant to Section 93 of the Local Government Act 2002; and

6.     Delegates the Mayor and Chief Executive to make any necessary minor editorial amendments prior to the release of the amended Long Term Plan 2018-28 to the public.

1

Council Meeting - Public Excluded Minutes -  4 June 2019

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)(g) To maintain legal professional privilege

2

Deferred Item - Recommendation from Community Services Committee

Founders Park - property purchase

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)(i)

     To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

3

Community Services Committee - Founders Park - property purchase: Supplementary information

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)(i)

     To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

Important considerations for decision making

1. Fit with Purpose of Local Government

Adopting the Annual Plan 2019/20 and the amendment to the Long Term Plan 2018-28 for Community Housing fits with the purpose of local government as it sets out how Council will deliver infrastructure, services, regulatory functions and other services during 2019/20 and how rates will be set to achieve this.  

2. Consistency with Community Outcomes and Council Policy

The Annual Plan process supports all the Community Outcomes, particularly that:

·      Our Council provides leadership and fosters partnerships, a regional perspective, and community engagement.

3. Risk

 Given the diversity of views expressed by submitters there are some decisions that not all members of the public would agree with. However, the thorough consultation undertaken mitigates this risk and all submitters will receive a customised letter explaining Council’s decisions.  

4. Financial impact

The adoption of this Annual Plan will result in a final increase in rates required, after allowing for growth in the rating base, is 4.2%.  The forecast net debt as at 30 June 2020 is $91.7 million.

Through the adoption of this Annual Plan, Council plans to meet the financial benchmarks included in the Annual Plan disclosure statement.

5.   Degree of significance and level of engagement

This report relates to the adoption of the final Annual Plan 2019/20, the setting of rates for 2019/20, and amendments to the Long Term Plan 2018-2028.  These matters are considered to be low significance, as the key decisions on submissions were made as part of the 4 June 2019 deliberations meeting.

The matters considered under the Annual Plan Consultation Document and the proposed amendment to Long Term Plan 2018-2028 (relating to community housing) were, by comparison, of medium to high significance.  That assessment reflected that the proposals directly impacted on all Council work, would determine the level of rates for the 2019/20 year, and related to the divestment of a strategic asset (community housing) thereby requiring an amendment to the long term plan. 

Under the Local Government Act 2002 (the Act), local authorities are required to consult prior to adoption of an annual plan only if it proposes significant or material differences from the long term plan (section 95(2A). Furthermore, in general there is no requirement to undertake a special consultative procedure.  In this case, however, consultation on an amendment to the long term plan was undertaken at the same time as consultation on the annual plan, triggering the requirement under section 95B of the Act to undertake a special consultative procedure.  Council has undertaken this process and met the requirements of the Act.

The content of the Annual Plan Consultation Document and proposed amendment to the Long Term Plan 2018-28 were of medium to high significance for many members of the public. This assessment reflects that the proposals in these plans directly impact on all of Council’s work, the strategic asset of community housing, as well as the rates for the 2019/20 year.  

6. Inclusion of Māori in the decision making process

The following submissions were made by iwi or iwi owned organisations,  Ngāti Tama ki Te Waipounamu Trust, Te Matua Trust and Koata Ltd to the Annual Plan Consultation Document.

7. Delegations

       The preparation and adoption of an Annual Plan, setting of rates and
amending the Long Term Plan are decisions for Council.