Item 11: Options for
the Annual Plan 2022/23
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Council
10 March 2022
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REPORT R26534
Options
for the Annual Plan 2022/23
1. Purpose
of Report
1.1 To
decide whether to consult on the draft Annual Plan 2022/23.
1.2 To
decide whether to adjust the Uniform Annual General Charge.
2. Summary
2.1 The
Local Government Act does not require councils to formally consult on annual
plans where the changes from the Long Term Plan 2021-31 (LTP) for that year are
not significant.
2.2 Staff
have assessed the proposed changes to year two of Council’s LTP against
Council’s Significance and Engagement Policy and LTP priorities and do
not believe they are material. Therefore, Council has the option of not
consulting on the Annual Plan 2022/23 before its adoption.
2.3 The
report also recommends reducing the Uniform Annual General Charge to 11% to
reflect changes in the three waters fixed charges.
3. Recommendation
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That
the Council
1. Receives the report Options for the
Annual Plan 2022/23 (R26534) and its attachments (A2830485 and A2837769); and
2. Agrees to reduce the Uniform Annual
General Charge from 13% to 11% from 1 July 2022; and
3. Agrees that the content of the
Annual Plan 2022/23 does not include significant or material differences to
year two of the LTP and therefore consultation on the Annual Plan 2022/23
will not be undertaken; and
4. Notes that there will be messaging
prepared for the community on the content of the proposed Annual Plan 2022/23
and Council’s consultation decision, noting other matters Council is
planning to engage the community on during the 2022 year; and
5. Notes that the final Annual Plan
and rates resolutions for 2022/23 will be brought for adoption before the end
of June 2022.
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4. Background
Nelson’s Annual Plan
2022/23 process so far
4.1 Draft
capital budgets for 2022/23 were discussed at a Council workshop on 7 December
2021. There were presentations on the context of this Annual Plan, capital
variance from Year Two forecasts in the LTP, and COVID-19 impacts on the
capital work programme. A second workshop on 10 February and 1 March 2022
presented revised budgets and the rates for 2022/23.
Consultation requirements of
the Local Government Act 2002
4.2 Section
95 of the Act states that councils must prepare and adopt an annual plan for
each financial year. It includes the requirement to consult in a manner that
gives effect to the requirements of section 82, the principles of consultation,
before adopting an annual plan.
4.3 In
2014, an amendment to the Act specified that this requirement does not apply if
the annual plan does not include significant or material differences from the
content of the long term plan for that financial year. This is to be determined
by the respective authorities’ policy measures of significance. These
amendments were designed to streamline consultation to make it more useful,
practical and effective, and to introduce more flexibility and discretion for
councils.
4.4 The
purpose of the annual plan was amended to reflect the legislative changes. It
is a document which identifies variance from the long term plan and provides a
statutory link between the long term plan and the annual setting of rates.
5. Discussion
Materiality of
the proposed changes
5.1 The
table below provides a high-level overview of proposed variance:
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Year Two
LTP
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Proposed
Annual Plan 2022/23
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Variance
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Rates
increase
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5.4%
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5.4%
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Nil
|
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Rates
cap
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5.4%
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5.4%
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Nil
|
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Uniform
Annual General Charge (UAGC)
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13%
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11%
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(2%)
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|
Net debt
at 30 June 2023
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$160 million
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$161.7 million
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$1.7 million
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Debt/revenue
ratio
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113%
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112%
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(1%)
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Capital
spend (Excluding Capital Staff Costs, Vested
Assets, Regional Consolidations)
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$64 million
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$66.7 million
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$2.7 million
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Operational
spend (Excluding Regional Consolidations &
Internal Interest)
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$140.7 million
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$138.1 million
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$2.6 million
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Other
Income (Excluding Regional Consolidations, Water
by meter & Internal Interest)
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$41.8 million
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$41.4 million
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$0.4 million
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Rates
and Debt
5.2 With
the adoption of the LTP, the rates cap increased to the Local Government Cost
Index (LGCI) + 2.5% (from LGCI + 2%). Rates increases were set at the rates cap
across the ten years of the LTP, except for Year One (2021/22). The Annual Plan
2022/23 does not propose any change to the rates increase set for Year Two of
the LTP – this would remain at 5.4%. This level of rates would be below
the December 2021 annualised Consumer Price Index (CPI) inflation rate of 5.9%.
5.3 Net
debt is proposed to move very little from what was forecast in the LTP, which
is an increase of $1.7 million to $161.7 million.
5.4 The
LTP increased the debt/revenue cap to 175% (from 150%) to fund infrastructure
investment. The planned figure for Year Two was 113%, and the proposed Annual
Plan 2022/23 is very close to that, at 112%.
Capital Works Programme
5.5 COVID-19
has resulted in increased costs posing challenges to the successful delivery of
Council’s capital works programme throughout 2021/22, including:
· Month-on-month
cost increases for supply of materials and equipment
· Supply chain
delays and shortages, which incur costs
· Increasing freight
costs
· A tight labour
market – staff shortages and high mobility are making recruitment a
challenge
· Alert/Traffic
Light levels adding to complexity and uncertainty, which flows on to pricing
for services
5.6 Council
commissioned Business and Economic Research Limited (BERL) to assist officers
in determining what the outlook over the next several years would be, specifically
to see if prices will continue to rise, plateau, or drop. BERL advised that,
based on global economic consensus, the markets will calm down and that the
current steep price increases experienced to date will reverse in the course of
this year, leading to a net Nelson adjusted Local Government Cost Index (LGCI)
increase for capital expenditure of 3.4% for July 2021 – June 2022.
5.7 Expected
additional costs over and above the budget for the current year, based on
further funding requests and information to hand, has increased the capital
budget by 5.7%. As advised by BERL, the Nelson adjusted LGCI for capital
expenditure for the 2022/23 year is 3%. Staff consider it prudent to account
for the 2.7% difference (5.7% less budgeted 3% for 2022/23) in next
year’s Annual Plan.
5.8 In
order to assist Council to respond to market challenges quickly and deliver its
work programme in 2022/23 and years to come, a $1.8 million ‘COVID
Inflation Allowance’ is proposed for this Annual Plan. The allowance can
be called on to supplement project cost ‘overs’ when tenders come
in which require a fast approval process.
5.9 As
shown in the table below, there have been shifts in most activities’
capital budgets:
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Annual Plan 2022/23 Capital Expenditure (Excl. Capital Staff
Costs, Vested Assets, Regional Consolidations)
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Account
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LTP
2021-31
Final
Year Two
(2022/23)
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2022/23
Forecast
Estimate
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Variance 2022/23 AP Less LTP 2022/23
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Transport
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8,249,127
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8,410,927
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161,800
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Water
Supply
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6,338,105
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6,431,370
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93,265
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Wastewater
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9,880,945
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7,736,454
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(2,113,814)
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Stormwater
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7,942,845
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10,266,017
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2,323,172
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Flood
Protection
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10,734,248
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10,961,498
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227,250
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Solid
Waste
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32,445
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32,445
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0
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Environmental
Management
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2,231,454
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1,736,454
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(495,000)
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Social
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7,668,914
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8,029,866
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360,951
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Parks
& Active Recreation
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7,371,276
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5,477,405
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(1893,871)
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Economic
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0
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0
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0
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Corporate
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3,599,804
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7,577,698
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3,977,894
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Total
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64,049,163
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66,690,810
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2,641,647
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5.10 Proposed capital project
variances are listed below, which consist largely of movement of funds within
the next few years. These movements have been applied to create an achievable,
efficient 2022/23 work programme, and do not represent a reduction in levels of
service (see Attachment One):
Infrastructure:
5.11 Washington
Valley is a major project involving the upgrade/renewal of wastewater,
stormwater, water and roading infrastructure. This project has been split into
three stages. The LTP was based on Stage 1 being completed in 2021/22, Stage 2
in 2022/23 and Stage 3 in 2023/24.
5.12 To
achieve best value for money the construction window for Stage 1 was
negotiable, which enabled contractors to programme this project in against
their already busy workload. This resulted in construction for Stage 1
spreading over two financial years, and it is anticipated that approximately
$2.5 million is required to be carried over from 2021/22 into 2022/23 to
complete it.
5.13 In
addition, the $5.7 million included in the LTP for Stage 2 is proposed to be
deferred for one year, due to the need to prioritise the connection of the new
stormwater pipeline in Hastings Street to the existing culvert on St Vincent
Street (further information on this in section 5.26).
Transport:
5.14 $500,000
is to be brought forward to progress the City Centre bus interchange in
preparation for the new bus service in 2023.
5.15 $600,000
is planned to be brought forward to design and upgrade the Toi Toi
Street/Vanguard Street intersection to improve safety for road users and
pedestrians. In addition, $500,000 is being brought forward to improve safety
at the St Vincent Street roundabout.
5.16 $82,000
is to be carried forward into 2022/23 for the Railway Reserve Lighting project.
The business case is anticipated to be completed in 2021/22, followed by a
security study to determine the best location for lighting in 2022/23, and
design and consenting processes. Implementation is scheduled to begin in
2023/24. $643,000 is to be carried forward from 2022/23 to 2023/24.
5.17 $733,000
for Nelson Future Access Study active transport corridors in Washington Valley
and the hospital area is proposed to be moved to 2023/24, to align with the
Washington Valley utility upgrade and planning alongside the hospital redevelopment.
Water Supply:
5.18 An
additional $814,000 is included in proposed budgets for the renewal of
watermains in Arapiki Street and Rutherford Street.
5.19 Due
to the speed cushion trial on Toi Toi Street currently underway, the proposed
water ridermain upgrade for $209,000 is now planned to start in 2022/23 rather
than 2021/22.
5.20 Due
to the rephasing of Stage 2 of the Washington Valley Upgrade, approximately
$1.16 million for the renewal of the watermain is proposed to be moved into
2023/24.
5.21 A
further $245,000 is proposed to support projects associated with the proposed
new water trunk main and reservoirs in Atawhai and residential water meters.
Wastewater:
5.22 The wastewater pipeline renewals
programme is planned to be increased by approximately $1.1 million and includes
allocation for pipe renewals within Collingwood Street,
Rutherford Street and Wolfe Street. This is due to increased project costs
in the COVID-19 environment (as described in 5.5-5.7).
5.23 Construction
of the Awatea Place Pump Station is progressing ahead of schedule.
Approximately $3.2 million of the $4.66 million allocated in the LTP for
2022/23 is proposed to be brought forward into 2021/22.
5.24 Due to the rephasing of Stage 1
and 2 of the Washington Valley Upgrade, the 2022/23 budget for the renewal of
the wastewater pipelines has been reduced from approximately $1.57 million to
$970,000, with the balance deferred (see 5.11-5.13). This is to enable the
completion of Stage 1 of the upgrade.
5.25 A
further $348,000 is proposed to support projects associated with the Atawhai
Rising Main renewal programme and Pump Station renewals.
Stormwater:
5.26 An
additional $550,000 is to be included for Stage 1 of the Rutherford Street
stormwater upgrade, as a result of increased project cost estimates due to the
impacts of COVID-19 (described in 5.5-5.7), along with confirmed design and
expected construction methodology.
5.27 $1.05
million is included for completing Stage 1 of the Wastney Terrace Stormwater
Upgrade, for the same reasons as above (5.26). Due to delays at the resource
consent stage, construction is scheduled to begin in April/May of 2022.
5.28 Approximately
$1.46 million is included for the completion of Stage 1 of the Washington
Valley Upgrade. Stage 2 of the Upgrade has been deferred to 2023/24, to enable
the stormwater connection from Hastings Street to St Vincent Street, summarised
below:
5.28.1 The
culvert on St Vincent Street and Haven Road is due to be renewed in the LTP
from 2025 to 2027. During the design of the Washington Valley Stormwater
upgrade, it was identified that the condition of the St Vincent Street culvert
requires a localised upgrade to ensure the new stormwater pipe on Hastings
Street (Stage 1) can be successfully connected to this culvert. Prior to Stage
2 of the Washington Valley Upgrade commencing, the connection from Hastings
Street to St Vincent Street is to be prioritised in 2022/23 with approximately
$1.85 million proposed to be brought forward. The timing of the full renewal of
the St Vincent Street and Haven Road Culvert will be reviewed in a subsequent
Annual Plan/LTP.
Environment:
5.29 The
proposed budget for Streets for People City Centre projects has reduced from
$1.55 million to $800,000 in 2022/23 for design, engagement and implementation
of smaller projects. $1.9 million from 2021/22 and 2022/23 is proposed to be
deferred to 2023/24, to enable all the required project management steps to be
completed prior to construction of projects.
Social:
5.30 The
business case for the remediation of Stoke Hall is underway, and the budget of
$1.9 million for 2022/23 will be revisited once this is completed.
5.31 $2.1
million is planned to be allocated to action infrastructure improvements at the
Maitai Campground.
5.32 $1.2
million for the purchase of land to increase cemetery capacity would move into
2023/24, to align with the Joint Regional Cemetery Project Implementation Plan.
A final decision on proceeding with a regional cemetery will be made by Nelson
City and Tasman District Councils, following the endorsement of a business case
by the Joint Regional Cemetery Working Group.
5.33 $100,000
is to be brought forward for the Montgomery Square toilet upgrade. The project
is to include Council funding from 2024/25 and 2025/26 and a grant of $460,000
from the Ministry of Business, Innovation and Employment.
5.34 Following
detailed design, an additional $784,000 has been provisionally included for
Refinery Building earthquake strengthening, as well as $472,000 being carried
forward from 2021/22. A workshop will be held with Council in April (date
may change).
Parks and Active Recreation:
5.35 Renewal
of the Wakefield Quay sea wall in 2022/23 ($2 million) has been deferred
following further advice from engineering consultants. The additional time will
also allow the project to incorporate any developments arising from Waka
Kotahi/NZ Transport Agency’s Nelson Future Access programme.
Corporate:
5.36 An
additional $600,000 has been included for Civic House ceiling tiles remediation
work, necessary for safety as the old tiles pose a risk in the event of an
earthquake. Investigation into alternative methodology to determine the most
cost-effective way of resolving this safety issue is currently underway.
5.37 Civic
House Refurbishment: The pandemic has changed how Council operates, and new
ways of working are under consideration. Work is underway to confirm scope
requirements and price additional options for the refurbishment of Civic House.
The business case for refurbishment will be reviewed in respect of any new
requirements and brought back to Council for consideration.
5.38 Millers
Acre: A detailed cost estimate is underway in parallel with final design work
for the new cladding. A report will be presented to the Strategic Development
and Property Subcommittee on 24 March for approval of additional funding.
5.39 The
additional COVID Inflation Allowance of $1.8 million is held in the Corporate
activity.
Operational Budgets
5.40 There
has been an increase in interest rates from the time that the LTP was set,
which has increased the external interest to be paid. The rise in inflation has
also had an effect across the board, specifically causing increases in
depreciation and insurance after revaluations in June 2021. These increases
have been negated by a number of small changes to the operational budgets, both
in other income and in expenditure. Some of these changes have occurred in cost
centres that do not have a rates impact, meaning that the net of all the
changes is a zero rating and Council maintains a net rates increase of 5.4% as
per the LTP. These changes would not reduce the levels of service provided to
the community, or negatively impact work towards Council’s LTP Priorities.
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Proposed Annual Plan 2022/23 Operational Expenditure Variance
Summary (Excluding Regional Consolidations & Internal Interest)
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Activity
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LTP
2021-31
Final
Year 2
(2022/23)
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Proposed Annual Plan
2022-23
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Variance 2022/23
Annual Plan Less LTP Year Two
|
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Transport
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22,878,988
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23,109,327
|
230,339
|
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Water
Supply
|
12,767,398
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12,973,108
|
205,710
|
|
Wastewater
|
14,215,019
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14,657,579
|
442,560
|
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Stormwater
|
5,585,105
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5,668,392
|
83,288
|
|
Flood
Protection
|
1,907,812
|
1,670,328
|
(237,484)
|
|
Solid
Waste
|
7,481,956
|
7,785,382
|
303,426
|
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Environment
|
21,380,402
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19,085,311
|
(2,295,091)
|
|
Social
|
16,588,875
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17,301,638
|
712,763
|
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Parks
& Active Recreation
|
17,691,071
|
17,182,582
|
(508,489)
|
|
Economic
|
2,699,971
|
2,656,672
|
(43,299)
|
|
Corporate
|
17,466,644
|
16,051,226
|
(1,415,418)
|
|
Total
|
140,663,240
|
138,141,545
|
(2,521,694)
|
|
|
|
|
|
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Proposed Annual Plan 2022/23 Other Income Variance Summary (Excluding Regional Consolidations, Water
by meter & Internal Interest)
|
|
|
Activity
|
LTP
2021-31
Final
Year 2
(2022/23)
|
Proposed Annual Plan
2022-23
|
Variance 2022/23
Annual Plan Less LTP Year Two
|
|
Transport
|
(7,208,957)
|
(7,382,974)
|
(174,017)
|
|
Water
Supply
|
(47,585)
|
(55,233)
|
(7,648)
|
|
Wastewater
|
(3,204,327)
|
(3,378,435)
|
(174,017)
|
|
Stormwater
|
(5,085)
|
(5,085)
|
Nil
|
|
Flood
Protection
|
Nil
|
Nil
|
Nil
|
|
Solid
Waste
|
(7,657,432)
|
(7,731,367)
|
(73,935)
|
|
Environment
|
(6,344,020)
|
(7,306,390)
|
(962,370)
|
|
Social
|
(2,017,655)
|
(2,308,816)
|
(291,161)
|
|
Parks
& Active Recreation
|
(4,456,449)
|
(4,414,765)
|
38,684
|
|
Economic
|
(325,542)
|
(325,542)
|
Nil
|
|
Corporate
|
(10,497,053)
|
(8,512,289)
|
1,984,763
|
|
Total
|
(41,761,105)
|
(41,420,896)
|
340,209
|
|
|
|
|
|
5.41 The largest variance is in
the Environmental Management activity, due to the Whakamahere Whakatū
Nelson Plan being put on hold (by Council resolution of November 2021) pending
legislative changes to the Resource Management Act. This results in a reduction
of $3 million expenditure, $2.9 million of which was loan funded.
5.42 The
largest variance in the Corporate activity is due to a change in timing of the
Forestry harvesting plans with some work having come forward to the 2021/22
year which sees a decrease in Income of $2.1 million and a decrease in
expenditure of $1.8 million.
5.43 In
the LTP, Council had an additional 13.3 FTE in Year 2. As it is likely
that wage inflation will be above the 1.7% allowed in the LTP, 5.3 FTE will not
be recruited – thus allowing wage inflation to be adjusted to 3%. Overall
salaries are 0.69% or $190,000 above the LTP figure at $27,561,000.
Revaluation
Impacts
5.44 The
three-yearly revaluation of the City undertaken by Quotable Value (QV) has seen
a material increase in valuations. The land valuations will be used as a basis
of setting rates from 1 July 2022.
5.45 On
average, the value of residential housing has increased by 42% since the last
revaluation in 2018, with the average house value now sitting at $885,000,
while the corresponding average land value has increased by 73% for an average
of $508,000.
5.46 Commercial
property values increased by 14%, and property values in the industrial sector
have increased by 27% since the last rating valuation in 2018. Commercial and
industrial land values have increased by 31% and 36% respectively.
5.47 The
revaluation has seen historically lower value suburbs increase by more than
higher value suburbs, as seen in the QV presentation at the 8 December 2021
Council meeting. The table below is from this presentation:
5.48 Analysing
the data by 2018 land value bands shows that on average, lower value properties
have had a higher average increase in land value than higher value properties.
5.49 The
Uniform Annual General Charge (UAGC) covers charges for services which most
residents benefit from, irrespective of property value. Council currently
collects 13% of rates (excluding Solar Saver and Clean Heat Warm Homes targeted
rates, and water annual charge and water volumetric rate) through the UAGC.
5.50 Fixed
targeted rates for water, wastewater and stormwater/flood protection are
projected to increase in 2022/23 by approximately $134 from 2021/22 levels for
residential ratepayers. Over the past few years, Council has progressively been
reducing the UAGC from 15% to the current level of 13%, as its focussed
investment in three waters infrastructure has increased the overall fixed
charges and therefore the impact on lower value properties.
5.51 The
increase in 2022/23 in the three waters fixed charges, would justify lowering
the UAGC to 11% (based on the fact that the overall increase in the fixed
charges would be similar to the average increase in rates). This would not be
considered material as it is consistent with previous direction and actions
taken by Council, and therefore consultation would not be required.
5.52 Lowering
the UAGC to these levels still results in rates increases for 2022/23 for lower
value properties being well above the average rate increase, with higher value
properties receiving very low rate increases.
5.53 Council
could consider lowering the UAGC further than 11% to attempt to smooth the
impact of the 2021 revaluation on lower value properties. However even a
dramatic drop in the UAGC would not be sufficient to counter the significant
increases in house prices that Nelson has experienced, and it is not the
purpose of the UAGC to somehow manage the impacts of property price changes. In
fact, attempts to manipulate levers like the UAGC to address the housing crisis
are likely to have unintended consequences in other areas, and see Council
having to manage other flow on effects.
5.54 In
a broader context, issues with funding and income for local government, and a
possible review of the rating system, are something that Council could be
discussing with the Future For Local Government Panel when it meets with
elected members on 29 March, as these issues require a more fundamental
consideration across the sector.
Commercial
Differential
5.55 Commercial
rates for 2021/22 are set to collect 23.1% of the total rates, excluding water annual
charge and water volumetric rate, Clean Heat Warm Homes and Solar Saver
charges.
5.56 The
percentage collected has been decreased by 0.5% per annum for the last four
years to reduce the burden on the commercial sector. The LTP states that
Council will continue to reduce the proportion of rates collected from
commercial properties by 0.5% per year (to be reviewed annually) for the first
three years of the 2021-31 LTP. A reduction in the commercial differential
changes the distribution of the rates but not the overall average.
5.57 Given
the relative movements of the revaluation between residential and
commercial/industrial, it makes sense to continue with decreasing the
commercial differential and the sample rates tables reflect this.
Climate Rate
5.58 The
inclusion of a new climate rate in the Annual Plan, similar to the new Climate
Action Targeted Rate currently being consulted on by Auckland Council, was
raised during the 10 February workshop. To justify the new rate proposed by
Auckland Council, an assessment of its Climate Action Plan and the projected
emissions reductions it is expected to deliver was undertaken. In order to
provide a robust argument for the need for such a rate in Nelson, staff would
need to develop a list of currently unfunded actions that would be a priority
for achieving Council’s climate change objectives. Work underway on a
strategic framework for climate change would also inform the case for a
targeted climate rate, by setting out strategic priorities to guide future climate
action and decisions on where investment is needed. Council could request work
on a proposed targeted climate rate be undertaken to inform the 2023/24 Annual
Plan.
Assessment of Significance
5.59 Staff
have assessed proposed changes to Year Two against Council’s Significance
and Engagement Policy and considered the impact on Council’s LTP
priorities (Attachment One). The proposed changes in the Annual Plan 2022/23
are not considered to be significant, both when assessed independently and alongside
the other changes proposed.
Community
views can be considered without additional consultation
5.60 Council
consulted on the LTP in 2021 and received over 660 submissions – a record
number. The content of these submissions remains highly relevant, as does other
recent community feedback that can help inform considerations on the content of
this Annual Plan. This gives effect to Section 78 of the Act, which requires
Council to give consideration to community views and preferences.
5.61 With
respect to this, the analysis of significance in Attachment One has also
considered whether any proposed changes would have a negative impact on
Council’s key priorities set in the LTP 2021-31. No significant impacts
on these have been identified.
Advantages to
not consulting on this Annual Plan
5.62 As
the variances proposed for this year’s Annual Plan are not significant
and do not trigger the legislative requirement to consult, there would be
several advantages for Council and the community of not consulting on the Annual
Plan this year.
Saving public effort and time
/ combatting consultation fatigue
5.63 Shape
Nelson shows the wide range of topics Council has been and is engaging with the
public on. Many organisations and members of the public put significant time
and consideration into their LTP submissions in 2020, and various consultations
in 2021/22. Asking the public to submit again on an Annual Plan without
significant changes may be seen as unreasonable, as their LTP feedback remains
relevant.
5.64 As
detailed in section 5.69, Council is planning to hold many consultations in the
2022 calendar year. A non-essential consultation on the Annual Plan would pull
focus and public resources away from these more critical topics.
5.65 ‘Consultation
fatigue’, from too frequently being asked to give feedback, risks putting
some people off submitting on consultations when Council really needs their
input. An information sharing approach for a non-significant Annual Plan would
reduce the consultation burden.
Diverting resources to work
that is meaningful to the community, and Council’s priorities
5.66 A
significant amount of staff and elected members’ time is absorbed by the
process of:
· Preparation of a
consultation document
· Submission
processing and consideration, followed by hearings and deliberations
· Preparation of
letters to all submitters
5.67 Consulting
on an Annual Plan without significant variances would not be an efficient use
of Council resources. Staff and elected members have many competing priorities,
and not consulting here will give them time for other important work.
Community engagement opportunities beyond Annual Plan
consultation
Opportunities to provide feedback
5.68 Consultation
on an annual plan is only one of the many opportunities the public has to give
feedback and make requests of elected members and staff during a given year.
Other opportunities include:
· Informal
consultations (comments received online via Shape Nelson, by letter, in person,
or via email)
· Formal
consultations (written and oral submissions are considered by elected members)
· The
opportunity to speak at public forums
· Feedback
to customer services, which is passed to relevant staff
5.69 There
are several consultations/engagements occurring this year. Elected members will
have the opportunity to get involved in some of these through workshops,
sharing Council communications, and public meetings (subject to COVID-19
traffic light levels), as well as the formal consultation processes.
5.70 Topics
for public engagement planned for 2022 and into 2022/23 include:
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· Dynamic Adaptive Planning Pathways
· Future
Development Strategy Review
· Parking
Strategy
· Three
Waters Reforms
· Out
and About On Tracks Strategy
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· City
Centre Library Engagement
· Road
Encroachment Policy Review
· Parking
and Vehicle Control Bylaw
· Arts
Strategy
· Navigational
Safety Bylaw
· Urban
Greening Strategy
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Informing the community about the Annual
Plan
5.71 If
Council decides not to consult, the community will still be informed about the
Annual Plan. Council’s Significance and Engagement Policy describes the
desired outcome of engagement with the public, based on significance. For
issues of low significance, “information to assist the public in
understanding the problems, solutions and performance is available via Council
materials”.
5.72 If
there is no consultation, staff plan to communicate the key messages of the
Annual Plan to the public (rates, debt, low variance, and main changes to
projects) prior to adoption. Materials will explain the decision on
consultation. The final Annual Plan and rates will be advertised in a media
release, and through social media channels once it is adopted. This approach is
consistent with requirements of the Act, and with the approach followed by
other councils.
Sample Rates
5.73 A
table of proposed sample rates for 2022/23 is included in this report as
Attachment Two. Council’s online Rates Search tool will be updated
shortly after this meeting, so that individuals can compare their 2022/23 rates
under this proposal against the current year. This tool will be advertised in
public communications about the Annual Plan.
6. Options
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Option 1:
(Recommended) Do not undertake consultation due to
no significant changes from Year Two of the LTP.
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Advantages
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· A
consultation document, submissions and hearings are not required, saving
significant community and Council time. Staff and elected members’ time
can be used for other priority work which contributes to the LTP priorities
· Avoids raising expectations in the community about
the ability to add new projects and funding to the Annual Plan
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Risks
and Disadvantages
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· Some members of the community may be unhappy that a
formal consultation is not available
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Option 2: Prepare a consultation document and carry out
consultation on all the proposed changes set out in the Annual Plan 2022/23.
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Advantages
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· Some members of the community may prefer the
opportunity to request changes to the Annual Plan and be heard by elected
members
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Risks
and Disadvantages
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· Significant staff and elected member resources are
required
· Council has limited ability to amend the overall
work programme in the Annual Plan
· There is a risk of community consultation fatigue
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7. Next Steps
7.1 If
a decision is taken not to consult staff will prepare communications on the
Annual Plan 2022/23 and a report to adopt the final Annual Plan and rates for
2022/23 will be brought to Council before the end of June 2022.
Author: Nicky
McDonald, Group Manager Strategy and Communications
Nikki Harrison, Group Manager Corporate Services
Attachments
Attachment 1: A2830485 -
Assessment of the proposed Annual Plan 2022/23 against Council’s
Significance and Engagement Policy ⇩
Attachment 2: A2837769
- Rating impacts of the proposed Annual Plan 2022/23 (UAGC 13% and 11% shown) ⇩
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Important considerations for decision making
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1. Fit
with Purpose of Local Government
The decision aligns with
Council’s responsibilities under the Local Government Act 2002 for
consultation and production of annual plans. As consultation on the LTP was
extensive, a decision not to consult on an Annual Plan which contains no
significant or material changes from the Long Term Plan for that year would
not negatively impact community wellbeing.
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2. Consistency
with Community Outcomes and Council Policy
The recommendations align with Council’s
Significance and Engagement Policy and the following community outcome:
Our Council provides leadership and fosters
partnerships, a regional perspective, and community engagement.
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3. Risk
Council has not previously
taken the route of not consulting on an annual plan, due to the inclusion of
significant changes. If Council decides not to carry out formal consultation,
there is a possibility that the significance or materiality assessment may be
challenged.
Based on the overall changes
proposed to the rates revenue, net debt level, and capital works programme,
staff consider it unlikely that there would be a successful legal challenge.
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4. Financial
impact
There would be financial savings in 2021/22 on
public communications, the design, printing and distribution of a
consultation document, processing of submissions, and the running of
hearings.
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5. Degree
of significance and level of engagement
This matter is of low significance to the community
as there are no material changes proposed to year two of the LTP. Without
consultation, engagement on the Annual Plan 2022/23 will occur in the form of
communications from Council, to assist the public in understanding the
process and content of the Plan.
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6. Climate
Impact
This decisions in this report
will have no impact on the ability of Council to proactively respond to the
impacts of climate change now or in the future.
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7. Inclusion of Māori in the decision making process
No engagement with Māori
has been undertaken in preparing this report.
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8. Delegations
The Council has the following delegations to
consider options for consultation on the Annual Plan 2022/23:
Areas of Responsibility:
· Communications
and Engagement Strategy
· Long Term
Plan policies, including the Financial Strategy, ratings policies, revenue
and financing policies and Long Term Plan assumptions
Delegations:
· The power to
adopt a Long Term Plan, Annual Plan or Annual Report
· The power to
adopt policies required to be adopted and consulted on under the Local
Government Act 2002 in association with the Long Term Plan or developed for
the purpose of the local governance statement
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