Notice of the Ordinary meeting of

Nelson City Council

Te Kaunihera o Whakatū

 

Date:                      Tuesday 14 June 2022

Time:                     9.00a.m.

Location:                via Zoom

Agenda

Rārangi take

Chairperson                      Her Worship the Mayor Rachel Reese

Deputy Mayor                   Cr Judene Edgar

Members                           Cr Yvonne Bowater

        Cr Trudie Brand

        Cr Mel Courtney

        Cr Kate Fulton

        Cr Matt Lawrey

        Cr Rohan O'Neill-Stevens

        Cr Brian McGurk

        Cr Gaile Noonan

        Cr Pete Rainey

        Cr Rachel Sanson

        Cr Tim Skinner

Quorum    7                                         Pat Dougherty

Chief Executive

Nelson City Council Disclaimer

Please note that the contents of these Council and Committee agendas have yet to be considered by Council and officer recommendations may be altered or changed by the Council in the process of making the formal Council decision. For enquiries call (03) 5460436.


Council Values

 

Following are the values agreed during the 2019 – 2022 term:

 

A. Whakautetanga: respect

B. Kōrero Pono: integrity

C. Māiatanga: courage

D. Whakamanatanga: effectiveness

E. Whakamōwaitanga: humility

F. Kaitiakitanga: stewardship

G. Manaakitanga: generosity of spirit

 

 


Nelson City Council

14 June 2022

 

 

Page No.

 

Karakia and Mihi Timatanga

1.       Apologies

Nil

2.       Confirmation of Order of Business

3.       Interests

3.1      Updates to the Interests Register

3.2      Identify any conflicts of interest in the agenda

4.       Public Forum

5.       Recommendations from Committees                        

5.1     Audit, Risk and Finance Subcommittee - 24 May 2022

5.1.1   Draft Annual Internal Audit Plan to 30 June 2023

Recommendation to Council

 

That the Council

1.    Approves the Draft Annual Internal Audit Plan for the year to 30 June 2023 (A2867251).

 

 


 

5.2     Strategic Development and Property Subcommittee - 9 June 2022

5.2.1   Nelson Marina Masterplan

Recommendation to Council

 

That the Council

1.    Approves releasing the Draft Nelson Marina Masterplan (A2893150) for consultation and community feedback; and

2.    Approves the public feedback document (A2893152).

 

 

6.       Mayor's Report        13 - 14

Document number R26948

That the Council

1.        Receives the report Mayor's Report (R26948) and its attachment (A2898827).

7.       Adoption of the Annual Plan 2022/23 and setting of the rates              15 - 41

Document number R26771

Recommendation

That the Council

1.    Receives the report Adoption of the Annual Plan 2022/23 and setting of the rates (R26771)  and its attachments (A2891743, A2891469, and A2900167); and

2.    Agrees that the content of the Annual Plan 2022/23 does not include significant or material differences to year two of the Long Term Plan 2021-31; and

3.    Approves the budget carry forwards as set out in Attachment 1 (A2891743); and

4.    Reconfirms, as approved through the Long Term Plan 2021-31, that setting an unbalanced budget in the Annual Plan 2022/23 is prudent in terms of section 100 of the Local Government Act 2002, given the ongoing effects of the COVID-19 pandemic on the local economy and ratepayers, and having had regard to the matters in section 100(2) of the Local Government Act 2002;

5.    Adopts the Annual Plan 2022/23 (A2900167) pursuant to Section 95 of the Local Government Act 2002; and

6.    Delegates the Mayor, Deputy Mayor and Chief Executive to make any necessary minor editorial amendments prior to the release of the Annual Plan 2022/23 to the public; and

7.    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 2022 and ending on 30 June 2023.

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

  Revenue approved:

General Rate                                                     $43,641,098

Uniform Annual General Charge                      $11,113,932

Stormwater and Flood Protection Charge           $8,561,516

Waste Water Charge                                        $10,776,338

Water Annual Charge                                        $4,133,539

         Water Volumetric Charge                                   $9,644,924

Rates and Charges (excluding GST)                 $87,871,347

Goods and Services Tax(at the current rate)   $13,180,702

Total Rates and Charges                                $101,052,049

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 0.34323 cents in the dollar of land value on every rating unit in the “residential – single unit” category.

·        a rate of 0.34323 cents in the dollar of land value on every rating unit in the “residential empty section” category.

·        a rate of 0.37755 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 0.37755 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 1.15049 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 235.195% differential on land value.

·        a rate of 0.94869 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 176.4% differential on land value.

·        a rate of 0.74687 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 117.6% differential on land value.

·        a rate of 0.54505 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 58.8% differential on land value.

·        a rate of 1.59411 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 364.445% differential on land value.

·        a rate of 1.28128 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 273.3% differential on land value.

·        a rate of 0.96860 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 182.2% differential on land value.

·        a rate of 0.65591 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 91.1% differential on land value.

·        a rate of 1.38583 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 303.76% differential on land value.

·        a rate of 1.12511 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 227.8% differential on land value.

·        a rate of 0.86460 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 151.9% differential on land value.

·        a rate of 0.60374 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 75.9% differential on land value.

·        a rate of 0.22310 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 0.30891 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 $376.05 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 $454.43 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:

 

·    $564.72 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 $141.18 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)       $220.69

 

         (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       $2.295 per m³

Usage from 10,001 – 100,000

cu.m/year                                       $1.962 per m³

Usage over 100,000 cu.m/year      $1.548 per m³

Summer irrigation usage over

10,000 cu.m/year                           $2.129 per m³

 

       (7) Low Valued Properties Remission Value

In accordance Section 85 of the Local Government (Rating) Act 2002 and Council’s Rates Remission Policy, Council sets the land value for the Low Valued Properties Rates Remission at $10,000.

Other Rating Information:

Due Dates for Payment of Rates

The above rates (excluding water volumetric rates) shall be payable in four instalments on the following dates:

 

Instalment
Number

Instalment Date

Last Date for Payment

Penalty Applied

Instalment 1

25 July 2022

22 August 2022

26 August 2022

Instalment 2

25 October 2022

21 November 2022

25 November 2022

Instalment 3

25 January 2023

20 February 2023

24 February 2023

Instalment 4

26 April 2023

22 May 2023

26 May 2023

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

Water volumetric rates shall be payable on the following dates:

 

Billing Month

Last Date for Payment

July 2022

22 August 2022

August 2022

20 September 2022

September 2022

20 October 2022

October 2022

21 November 2022

November 2022

20 December 2022

December 2022

20 January 2023

January 2023

20 February 2023

February 2023

20 March 2023

March 2023

20 April 2023

April 2023

22 May 2023

May 2023

20 June 2023

June 2023

20 July 2023

 

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 5% of the amount of each rate instalment remaining unpaid after the due date stated above, to be added on the penalty date as shown in the above table and also shown on each rate instalment notice.

·     a charge of 5% will be added on 8 July 2022 to any balance from a previous rating year (including penalties previously charged) remaining outstanding on 1 July 2022.

·     a further additional charge of 5% will be added on 11 January 2023 to any balance from a previous rating year (including penalties previously charged) to which a penalty has been added according to the bullet point above, remaining outstanding on 9 January 2023.

Penalty Remission

In accordance Section 85 of the Local Government (Rating) Act 2002 and Council’s Rates Remission Policy, the Council will approve the remission of a penalty where the criteria of the policy has been met.

Payment of Rates

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, Thursday and Friday and 9.00am to 5.00pm Wednesday.

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 to current year rates due.

 

 

8.       Central Library Development Project Progress Report to End of March 2022 Quarter 42 - 49

Document number R26822

Recommendation

That the Council

1.    Receives the report Central Library Development        project Progress Report to End of March 2022 Quarter        (R26822).

 

9.       Placeholder: Central Library Development - Communications Strategy

This report will be distributed in a supplementary agenda.

 

10.     Quarterly update on significant central government reform programmes            50 - 59

Document number R26888

Recommendation

That the Council

1.    Receives the report Quarterly update on significant central government reform programmes (R26888)

 


 

11.     Nelson Regional Development Agency Statement of Intent 2022/2023            60 - 119

Document number R26709

Recommendation

That the Council

1.    Receives the report Nelson Regional Development Agency Statement of Intent 2022/2023 (R26709) and its attachment (A2901525); and

2.    Agrees that the Nelson Regional Development Agency Statement of Intent 2022/23 meets Council’s expectations and is approved as the final Statement of Intent for 2022/23.

 

  

Confidential Business

12.     Exclusion of the Public

Recommendation

That the Council

1.       Excludes the public from the following parts of the proceedings of this meeting.

2.       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)

 

Recommendations from Committees

 

 

1

Strategic Development and Property Subcommittee - 9 June 2022

Relocatable Home Park Maitai Valley Motor Camp Approval

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)(g)

     To maintain legal professional privilege

2

Nelmac Limited Director Reappointment

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

 

 

Karakia Whakamutanga

 

  

  


 

Item 6: Mayor's Report

 

Council

14 June 2022

 

 

REPORT R26948

Mayor's Report

 

1.       Purpose of Report

1.1      To update Council on current matters.

2.       Recommendation

 

That the Council

1.    Receives the report Mayor's Report (R26948) and its attachment (A2898827).

 

3.       World Health Organisation’s Global Network of Age friendly Cities and Communities.

3.1      Whakatu Nelson has officially been accepted into the World Health Organisation’s Global Network of Age-friendly Cities and Communities (GNAFCC). A letter of congratulations from Hon Dr Ayesha Verrall, Minister for Seniors is attached (A2898827).

3.2      The WHO Global Age-friendly Cities Guide identifies core characteristics of an age-friendly city in eight areas of urban life: outdoor spaces and buildings; transportation; housing; social participation; respect and social inclusion; civic participation and employment; communication and information; and community support and health services.

3.3      The combined effort of Council and the community to develop He Rautaki Whakatupuranga: City for All Ages Strategy contributed to this significant achievement.

 

Author:          Rachel Reese, Mayor of Nelson

Attachments

Attachment 1:   A2898827 Hon Dr Ayesha Verrall re WHO's Global Network of Age friendly cities  


Item 6: Mayor’s Report Attachment 1

PDF Creator 


 

Item 7: Adoption of the Annual Plan 2022/23 and setting of the rates

                                                

Council

14 June 2022

 

 

REPORT R26771

Adoption of the Annual Plan 2022/23 and setting of the rates

 

 

1.       Purpose of Report

1.1      To approve carry forwards, adopt the Annual Plan 2022/23, and set the rates for 2022/23.

2.       Summary

2.1      Council is required to adopt the final Annual Plan 2022/23 by 30 June 2022, in accordance with s95(3) of the Local Government Act 2002.

3.       Recommendation

That the Council

1.    Receives the report Adoption of the Annual Plan 2022/23 and setting of the rates (R26771)  and its attachments (A2891743, A2891469, and A2900167); and

2.    Agrees that the content of the Annual Plan 2022/23 does not include significant or material differences to year two of the Long Term Plan 2021-31; and

3.    Approves the budget carry forwards as set out in Attachment 1 (A2891743); and

4.    Reconfirms, as approved through the Long Term Plan 2021-31, that setting an unbalanced budget in the Annual Plan 2022/23 is prudent in terms of section 100 of the Local Government Act 2002, given the ongoing effects of the COVID-19 pandemic on the local economy and ratepayers, and having had regard to the matters in section 100(2) of the Local Government Act 2002;

5.    Adopts the Annual Plan 2022/23 (A2900167) pursuant to Section 95 of the Local Government Act 2002; and

6.    Delegates the Mayor, Deputy Mayor and Chief Executive to make any necessary minor editorial amendments prior to the release of the Annual Plan 2022/23 to the public; and

7.    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 2022 and ending on 30 June 2023.

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

  Revenue approved:

General Rate                 $43,641,098

Uniform Annual General Charge                                  $11,113,932

 

Stormwater and Flood Protection Charge                           $8,561,516

Waste Water Charge     $10,776,338

Water Annual Charge     $4,133,539

 

                            Water Volumetric Charge                                                                        $9,644,924

Rates and Charges (excluding GST)                                      $87,871,347

Goods and Services Tax
(at the current rate)     $13,180,702

Total Rates and Charges                                    $101,052,049

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 0.34323 cents in the dollar of land value on every rating unit in the “residential – single unit” category.

 

·    a rate of 0.34323 cents in the dollar of land value on every rating unit in the “residential empty section” category.

 

·    a rate of 0.37755 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 0.37755 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 1.15049 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 235.195% differential on land value.

 

·    a rate of 0.94869 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 176.4% differential on land value.

 

·    a rate of 0.74687 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 117.6% differential on land value.

 

·    a rate of 0.54505 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 58.8% differential on land value.

 

·    a rate of 1.59411 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 364.445% differential on land value.

 

·    a rate of 1.28128 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 273.3% differential on land value.

 

·    a rate of 0.96860 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 182.2% differential on land value.

 

·    a rate of 0.65591 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 91.1% differential on land value.

 

·    a rate of 1.38583 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 303.76% differential on land value.

 

·    a rate of 1.12511 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 227.8% differential on land value.

 

·    a rate of 0.86460 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 151.9% differential on land value.

 

·    a rate of 0.60374 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 75.9% differential on land value.

 

·    a rate of 0.22310 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 0.30891 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 $376.05 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 $454.43 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:

·    $564.72 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 $141.18 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)                                         $220.69

 

         (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                               $2.295 per m³

Usage from 10,001 – 100,000

cu.m/year               $1.962 per m³

Usage over 100,000 cu.m/year                               $1.548 per m³

Summer irrigation usage over

10,000 cu.m/year   $2.129 per m³

 

       (7) Low Valued Properties Remission Value

In accordance Section 85 of the Local Government (Rating) Act 2002 and Council’s Rates Remission Policy, Council sets the land value for the Low Valued Properties Rates Remission at $10,000.

Other Rating Information:

Due Dates for Payment of Rates

The above rates (excluding water volumetric rates) shall be payable in four instalments on the following dates:

 

Instalment
Number

Instalment Date

Last Date for Payment

Penalty Applied

Instalment 1

25 July 2022

22 August 2022

26 August 2022

Instalment 2

25 October 2022

21 November 2022

25 November 2022

Instalment 3

25 January 2023

20 February 2023

24 February 2023

Instalment 4

26 April 2023

22 May 2023

26 May 2023

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

Water volumetric rates shall be payable on the following dates:

 

Billing Month

Last Date for Payment

July 2022

22 August 2022

August 2022

20 September 2022

September 2022

20 October 2022

October 2022

21 November 2022

November 2022

20 December 2022

December 2022

20 January 2023

January 2023

20 February 2023

February 2023

20 March 2023

March 2023

20 April 2023

April 2023

22 May 2023

May 2023

20 June 2023

June 2023

20 July 2023

 

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 5% of the amount of each rate instalment remaining unpaid after the due date stated above, to be added on the penalty date as shown in the above table and also shown on each rate instalment notice.

 

·    a charge of 5% will be added on 8 July 2022 to any balance from a previous rating year (including penalties previously charged) remaining outstanding on 1 July 2022.

 

·    a further additional charge of 5% will be added on 11 January 2023 to any balance from a previous rating year (including penalties previously charged) to which a penalty has been added according to the bullet point above, remaining outstanding on 9 January 2023.

Penalty Remission

In accordance Section 85 of the Local Government (Rating) Act 2002 and Council’s Rates Remission Policy, the Council will approve the remission of a penalty where the criteria of the policy has been met.

Payment of Rates

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, Thursday and Friday and 9.00am to 5.00pm Wednesday.

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 to current year rates due.

 

 

4.       Background

4.1      Council workshops on the Annual Plan were held in December 2021, and February and March 2022. At its meeting of 10 March 2022 Council agreed that the content of the Annual Plan 2022/23 did not include significant or material differences to year two of the Long Term Plan, and therefore public consultation on the document was not required.

4.2      The decision not to consult on this Annual Plan and the reasons for this were shared with the community via a media release and in the

23 March issue of Our Nelson.

4.3      A Council workshop was held on 17 May 2022 to discuss variances to budgets since they were presented at the Council meeting on 10 March. Attachment 2 contains an assessment of the significance of variances from the Long Term Plan, in accordance with Council’s Significance and Engagement Policy. Having regard to those assessments, staff do not consider these variances to be significant or material, so there is no requirement for public consultation.

4.4      Attachment 1 contains the proposed carry forwards presented today for approval by Council.

5.       Discussion

Variance to budgets

5.1      The table below provides a high-level overview of proposed variance from the Long Term Plan as presented to Council on 10 March, and the final figures.

 

Year Two

LTP

Proposed

AP 2022/23

10 Mar 2022

Proposed Variance to LTP

10 Mar 2022

Final

AP 2022/23

Final Variance to LTP

Rates increase

5.4%

5.4%

Nil

5.4%

Nil

Rates cap

5.4%

5.4%

Nil

5.4%

Nil

Uniform Annual General Charge (UAGC)

13%

11%

(2%)

11%

(2%)

Net debt at 30 June 2023

$159.9 m

$161.7 m

$1.8 m

$161.0m

$1.1 m

Debt/revenue ratio

113%

112%

(1%)

114%

1%

Capital spend (Excluding capital staff costs, vested assets, regional consolidations)

$64 m

$66.7 m

$2.7 m

$69.4m

$5.4m

Operating Expenditure

(As per Annual Plan statement of comprehensive revenue and expense)

$144.5 m

$142.1 m

$2.4 m

$144.4 m

$0.1 m

Other Income (Excluding regional consolidations, water by meter & internal interest)

$41.8 m

$41.4 m

($0.4 m)

$42 m

$0.2 m

5.2      Capital changes since 10 March which are over $500,000 are discussed below:

Civic House projects

5.3      The 2022/23 budget for refurbishment of Civic House has been reduced by $2.5 million, to $500,000. $2 million has been carried over into 2023/24, as more time is needed to develop a new approach. The pandemic has changed how Council operates and further change is coming from the Three Waters reform and changes to the Resource Management Act. New ways of working have required a rethink of the original business case.

5.4      Budgets carried over from 2021/22 for the renewal of Civic House’s roof have been reduced by $218,000 to $700,000 for the year. Options are being developed to strengthen the roof to above 34% NBS.

5.5      $900,000 has been added to the ceiling tiles remediation budget (including carry forwards) bringing the total for 2022/23 to $1.5 million. This will allow funding for working through remediation, based on priorities identified in a detailed seismic assessment that is being prepared.

Library Precinct development

5.3      The proposed budget of $3.4 million for this project in 2022/23 has been reduced to $1.2 million, due to rephasing of the project. $2.2 million has been carried over to 2025/26.

Maitai Camp improvements

5.4      Planned capital improvements at the Maitai Campground in 2022/23 are largely achievable, though there is some pressure on delivery. $515,000 has been carried over into 2023/24 to continue the project, resulting in a $1.6 million budget for 2022/23. The focus for the year will be on compliance work.

Sealed road resurfacing

5.5      $813,000 has been carried over from 2021/22 into 2022/23 for road resurfacing, as the contractor had limitations on the amount of work that it could achieve in 2021/22. The $2.3 million total budget in 2022/23 will be spent under a new road maintenance contract.

Millers Acre Centre building improvements

5.6      Miller’s Acre budgets for 2022/23 have increased by $610,000, to $885,000. Additional funds were approved by Council on 10 May 2022, to enable the recladding project to progress. $260,000 was carried over from 2021/22.

Wastewater projects

5.7      To assist with reducing the overall capital expenditure programme for 2022/23, the renewal of wastewater pipelines within Wolfe Street will now be phased over two financial years. This has resulted in $800,000 being carried over into 2023/24, leaving $800,000 in 2022/23.

5.8      The Awatea Place pump station project experienced delays in the latter half of 2021/22, so the construction works have been phased into 2022/23. $2.2 million has been carried over into 2022/23 for this, giving a total of $3.7 million.

Stormwater projects

5.9      The Washington Valley Infrastructure Upgrade – Stage 1 (Hastings Street) will not be completed in 2021/22, due to late start on site and COVID-19 restrictions/staff shortages. Construction and budgets are phased over two financial years (2021/22 and 2022/23). Progress on site has been slower than expected, for reasons including the discovery of contaminated coal tar material, the cost implications of which are still being worked on. As a result, funds are being carried over into 2022/23, with the project due for completion that year. $911,000 has been carried over in the stormwater portion of the project, bringing its total budget for 2022/23 to $2.4 million.

5.10    Budgets for the Rutherford Street stormwater upgrades have increased by $640,000 to $4.8 million for 2022/23, as part of an approved funding increase to the Rutherford Street Upgrades group of projects. This has resulted from changes to the design and scheduling of work, including a longer construction duration to minimise disruption to the public and the continuing rise in material costs.

5.11    Due to late awarding of tender, work on the Wastney Terrace stormwater construction programme has moved into 2022/23, resulting in $553,000 being carried over from 2021/22 ($1.6 million total for the year).

Water Supply projects

5.12    Budgets for Rutherford Street water renewals have increased by $535,000 to $1.3 million for 2022/23, as part of a funding increase to the Rutherford Street Upgrade group of projects described above.

5.13    To assist with reducing the overall capital expenditure programme for 2022/23, the renewal of water pipelines within Wolfe Street will now proceed in 2023/24. This has resulted in $500,000 being carried over into 2023/24, leaving $1.4 million budget for 2022/23.

Carry Forwards

5.14    Staff have reforecast the current year capital spend to 30 June 2022.  The projected capital forecast is $55.8 million, excluding staff time, joint business units and vested assets, with savings of $0.4 million offset by income funded overspends of $0.7 million. Capital carry forwards requested of $21 million are spread across years 2-5 of the Long Term Plan 2021-31 and are included in Attachment 1 for approval. $15 million of this is budget carried over from 2021/22 into 2022/23, and is included in the $71.6 million capital programme for 2022/23. (Changes to scope adjustment are included in the forecast total, but excluded from savings and carry forward totals).

5.15    Staff have also requested project-based operating expenditure budgets totalling $330,000 to be carried over into years 2-5 of the Long Term Plan 2021-31 (Attachment 1).

COVID Inflation Allowance

5.16    COVID-19 has resulted in increased costs that have posed many challenges to the delivery of Council’s capital works programme throughout 2021/22. A COVID Inflation Allowance was approved by Council on 17 February 2022 and management thereof delegated to the Tenders Subcommittee, with reporting to the Audit, Risk and Finance (ARF) Subcommittee. This was to supplement potential project cost ‘overs’ arising from the ever increasing materials and equipment costs, to complement the already successful streamlined procurement process, to award tenders more quickly, and to stay ahead of a very fast-moving, uncertain and volatile market. Based on the information available at that time, $1.8 million was included for 2022/23. The effectiveness of the new Inflation Allowance measures will be reported to Council via the ARF Subcommittee on a quarterly basis.

5.17    Since March 2022, further disruptions to the global and national economy have been seen, caused chiefly by New Zealand’s Omicron variant outbreak and the Russia/Ukraine conflict. Predictions by Business and Economic Research Limited earlier in the year that material markets would stabilise and then ease over the next 12 months have not been realised. On the contrary, costs for materials have increased even further. Labour shortages in construction remains an extremely volatile issue, with this not likely to ease any time in the short to medium term. This is likely to result in pressure on the budget allocation of $1.8 million. Any requests for further funding will be brought to full Council.

Setting of the rates

5.18    Following adoption of the Annual Plan, Council needs to pass a resolution to set the rates for the 2022/23 financial year.

5.19    The Annual Plan 2022/23 does not include any change to the rates increase set for year two of the Long Term Plan – this will remain at 5.4%. This level of rates is below the March 2022 annualised Consumer Price Index (CPI) inflation rate of 6.9%.

5.20    Net debt is forecast to increase from what was forecast in the Long Term Plan - from $159.9 million to $161 million.

5.21    The Long Term Plan increased the debt/revenue cap to 175% (from 150%) to fund infrastructure investment. The Long Term Plan debt/revenue figure for year two was 113%, and the final Annual Plan 2022/23 figure is 114%.

Unbalanced budget

5.22    Section 100 of the Local Government Act 2002 requires that local authorities must ensure that each year’s projected operating revenues are set at a level sufficient to meet that year’s projected operating expenses. However, the Act also provides that a local authority may set revenues at a different level if it resolves that it is financially prudent to do so, having regard to:

(a) the estimated expenses of achieving and maintaining the predicted levels of service provision set out in the long-term plan, including the estimated expenses associated with maintaining the service capacity and integrity of assets throughout their useful life; and

(b) the projected revenue available to fund the estimated expenses associated with maintaining the service capacity and integrity of assets throughout their useful life; and

(c) the equitable allocation of responsibility for funding the provision and maintenance of assets and facilities throughout their useful life; and

(d) the funding and financial policies adopted under LGA (2002) section 102.

5.23    The balanced budget benchmark is normally at least 100%, i.e. that revenue for the year (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant, or equipment) exceeds operating expenses (excluding losses on derivative financial instruments and revaluations of property, plant, or equipment).

5.24    In relation to 2022/23 Council confirmed an unbalanced budget was prudent at the adoption of the Long Term Plan 2021-31 on 24 June 2021:

Confirms that setting an unbalanced budget in 2021/22, 2022/23 and 2023/24 of the Long Term Plan 2021 – 2031  is prudent in terms of section 100 of the Local Government Act 2002, given the ongoing effects of the COVID-19 pandemic on the local economy and ratepayers, and having had regard to the matters in section 100(2) of the Local Government Act 2002;

5.25    Council does not meet the balanced budget benchmark for 2022/23, with a planned level of 98%. This is consistent with year two of the Long Term Plan 2021-31 Financial Strategy, where it was acknowledged that COVID-19 has had a significant impact on Council’s finances. It was resolved to have an unbalanced budget (projected operation expenditure exceeding projected operating income) for years one, two and three of the Long Term Plan, to maintain services and integrity of assets. This shortfall will be funded using Council’s balance sheet (debt).

Revaluation impacts

5.26    Revaluations are challenging a number of councils around the country. As detailed in the 10 March report to Council, the three-yearly revaluation of the City in September 2021 saw a 73% average increase in Nelson’s land valuations, which are used as a basis of setting rates. The impact of this is a change in the distribution of rates collected. 2022/23 rates increases for lower value properties are above average, and higher value properties are receiving lower rate increases. This does not change the total amount of rates collected by Council.

5.27    Attempts by Council to smooth the impact of the 2021 revaluation on lower value properties (through, for example, further reducing the UAGC) would not be sufficient to counter the significant increases in house prices that Nelson has experienced. Attempts to manipulate financial levers to address the housing crisis are likely to create flow on effects in other areas. Council’s Rating Policy will be considered as part of the next Long Term Plan, 2024-34.

5.28    Issues with funding and income for local government, and a possible review of the rating system, require more fundamental consideration across the sector. Council has raised the issue with the Future For Local Government Panel.

Communications with the public

5.29    Households with rates increases in the top 10% will receive a letter in July outlining the factors that have led to the increase, and detailing the types of assistance offered by Council.

5.30    After adoption, a media release will inform the public of key information about the Annual Plan and the rates for 2022/23. A summary will be published in Our Nelson, and the final designed Annual Plan document will be made available.

6.       Options

6.1      Council can, as recommended, approve the carry forwards as set out in Attachment 1, adopt the Annual Plan 2022/23, and set the rates for the 2022/23 financial year. Alternatively, Council could ask that further amendments be made to budgets and/or the Annual Plan 2022/23, and that updated documents and resolutions be brought back to a future Council meeting.

6.2      Approving the carry forwards in Attachment 1, adopting the Annual Plan and setting the rates is the preferred option. The alternative would make it difficult for Council to adopt the Annual Plan and set rates for 2022/23 by 30 June 2022. The resolution provides for minor amendments to be approved by the Mayor, Deputy Mayor, and Chief Executive.

7.       Conclusion

7.1      It is recommended that Council approve the carry forwards as set out in Attachment 1, adopt the Annual Plan 2022/23, and set the rates for the 2022/23 financial year.

 

Author:          Nicky McDonald, Group Manager Strategy and Communications and Nikki Harrison Group Manager Corporate Services

Attachments

Attachment 1:   A2893711 - Capital and operating carry forwards - Annual Plan 2022/23

Attachment 2:   A2891469 - Annual Plan 2022/23 variance to the Long Term Plan - Significance and Engagement Policy Assessment

Attachment 3:   A2900167 - Annual Plan 2022/23 (Circulated separately)

 

 

 

 

Important considerations for decision making

1.     Fit with Purpose of Local Government

Adopting the Annual Plan 2022/23 supports the wellbeing of Nelson residents and businesses, as it sets out how Council will fund and deliver infrastructure, community services, regulatory functions and support services during 2022/23.

2.     Consistency with Community Outcomes and Council Policy

The Annual Plan supports all of Council’s Community Outcomes.

3.     Risk

The Local Government Act 2002 Amendment Act 2014 (Section 33) specified that consultation is not required if the proposed annual plan does not include significant or material differences from the content of the long-term plan for the financial year to which the proposed annual plan relates.

These amendments were designed to streamline consultation to make it more useful, practical and effective, and to introduce more flexibility and discretion for councils. 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.

Council has not previously taken the route of not consulting on an annual plan. There is a possibility that the significance or materiality assessment made in relation to these changes may be challenged.

However, based  on the overall changes to the rates revenue, net debt level, and capital works programme, staff consider it unlikely that any legal challenge would be successful.

4.     Financial impact

The financial impact of adopting the Annual Plan 2022/23 is summarised in the table at 5.1.

5.     Degree of significance and level of engagement

Adoption of the Annual Plan on the terms proposed is of low significance having regard to Council’s Significance and Engagement Policy, and as further detailed in the enclosed table at Attachment Two. The changes to year two of the Long Term Plan are not significant and consultation under the Local Government Act is not required. Changes made have not altered rates requirements, and projected debt levels have not changed significantly.

6.     Climate Impact

This decision will have no impact on the ability of Council to proactively respond to the impacts of climate change now or in the future.

7.     Inclusion of Māori in the decision making process

No engagement with Māori has been undertaken in preparing this report.

8.     Delegations

The adoption of the Annual Plan and setting of rates are decisions for Council.

 


Item 7: Adoption of the Annual Plan 2022/23 and setting of the rates: Attachment 1

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Item 7: Adoption of the Annual Plan 2022/23 and setting of the rates: Attachment 2

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Item 8: Central Library Development Project Progress Report to End of March 2022 Quarter

 

Council

14 June 2022

 

 

REPORT R26822

Central Library Development Project Progress Report to End of March 2022 Quarter

 

1.       Purpose of Report

1.1      To update Council on the progress of the major project – the Central Library Development Project.

2.       Recommendation

That the Council

1.    Receives the report Central Library Development Project Progress Report to End of March 2022 Quarter (R26822).

 

 

 

 

3.       Background

3.1      The Central Library Development project is a major project for the Nelson Region. The new, modern library is intended to create an enticing place for the Nelson community. While retaining valued library services at its core, the transformed library will offer the community much more. For example, it may be an incubator for learning, creativity and innovation, alongside being a safe and welcoming place for all.

3.2      The Central Library Development project gives effect to the key actions identified in Te Ara ō Whakatū – the pathways of Nelson by creating an enticing destination facility in the Central City during the daytime and evening. In particular, the project delivers on:

3.2.1   Great Places – creating an exciting social space offering appeal across a wide age range.

3.2.2   Precinct Power – creating a gateway to the riverside precinct and a stimulus for further redevelopment of the precinct by Wakatū Inc.

3.2.3   People at Play – enhancing the current library offering as a safe and inviting place for children in the Central City.

3.3      At its 18 May 2021 meeting, Council:

(2)      Reconfirms that, having considered submissions on the Long Term Plan 2021-31 and having considered the business case, Council’s preferred option is to build a new library building on the corner of Halifax Street and Trafalgar Street, within the Riverside Precinct, subject to agreement with Wakatū Incorporation on a land exchange involving that site and the current library site, and completion of a flood mitigation plan for the proposed building footprint including consideration of effects on adjoining sites.

3.4      Further, Council:

(3)     Confirms that, prior to negotiations taking place:

·     Council will approve the land exchange negotiation team and its brief; and

(4)     Confirms that on completion of negotiations:

·    Council will approve the community engagement process (including a communication strategy), project management and governance approach, procurement process, financial management, and reporting and approvals processes for the proposed new library building and landscaping; and

(5)     Notes that under best practice a Quality Assurance Framework is used for the life of the project

(6)     Confirms that prior to design

·    Council will approve the level of any shared community spaces (including provision for community organisations) in the library building project scope; and

(7)     Notes the guiding principle of developing an accessible community space, that officers also consider housing opportunities in the planning process and to report to Council on considerations; and

(8)     Confirms that, should negotiations with Wakatū Incorporation on a land exchange be unsuccessful, officers will seek confirmation from Council to proceed with Option Four – to construct a new high specification library on the current site.

3.5      Subsequently, at its 23 September 2021 meeting, Council made the following resolutions:

2.      Amends clause 4 of resolution CL/2021/090 made during the 18-20 May 2021 Council meeting, to:

Confirms that, on completion of negotiations:

·    Council will approve the community engagement process (including a communication strategy and engagement plan), project management and governance approach, procurement process, financial management, and reporting and approvals processes for the proposed new library building and landscaping, noting that this work will run in parallel with land exchange negotiations; and

3.6      Since the 18 May 2021 Council meeting, notable progress has been made with the Central Library Development Project. Key achievements include:

3.7      At its 23 September 2021 meeting, Council made the following resolution addressing clause (3) of its May resolution:

Approves the Nelson Central Library Development Land Exchange Negotiation Team, consisting of the Group Manager Community Services (Team Lead), Group Manager Infrastructure, John Murray and Sam Cottier (Lead Negotiator); and

3.8      The land exchange negotiations have been steadily progressing with Wakatū Incorporation (Wakatū) since the establishment of the negotiation team (see section 4.1).

3.9      The Flood Mitigation Plan was presented to Council on 23 September 2021, where it was agreed that the flood modelling undertaken demonstrated that the proposed Nelson Central Library had a negligible effect on the adjacent properties, if design and landscape features are included into the design brief. Those requirements will be included in the final brief.

Agrees that the flood modelling presented in the Nelson Central Library Redevelopment - Flood Mitigation Plan (A2733041) demonstrates that the proposed Nelson Central Library Development (corner of Trafalgar/Halifax Streets) has negligible effect on adjacent properties if design and landscape features are incorporated into the design brief; and

3.10    The flood modelling will continue to be revisited if new and pertinent evidence arises or there are changes in the legislative context that may impact the development.

3.11    The organisation chart was established (clause (4) of the May resolutions) with membership of the Steering Group, Governance Reference Group, Project Control Group and Project Management team confirmed.

3.12    A Project Manager from Council’s Project Management Office was appointed as the internal project manager for the Central Library Development project.

3.13    A rigorous two-stage procurement process, commencing in October 2021, was undertaken to select a suitable Project Director. An appointment was made in December 2021.

3.14    A high-level project plan was developed in January 2022 with an updated detailed project plan and comprehensive risk register completed in March 2022.

3.15    Two engagement specialists were contracted to deliver the first phase of the community engagement process – Crestani Communication and Bowland Consulting. An Iwi Liaison was appointed to guide the iwi engagement process.


 

3.16    The community engagement strategy was approved at Council’s 23 March 2022 meeting. This identified four engagement phases throughout the Central Library Development project. These are:

3.16.1   Phase 1: Engagement on the process and the idea

·     Vison, benefits, opportunity for input

·     Blue skies – explore a future library experience

3.16.2   Phase 2: Engagement on concept design

Have we got it right?

3.16.3   Phase 3: Community update on preliminary design

Share the latest design and explain the choices that needed to be made

3.16.4   Phase 4: Engagement with user groups on developed design

The specifics of what we are proposing – will the layout/functionality work?

3.16.5   Construction phase: keep dialogue going to maintain goodwill.

3.16.6   Completed living library: keep dialogue going between locals and their library.

4.       Discussion

4.1      Site negotiations

4.1.1     The land exchange negotiation with Wakatū Inc is progressing well, with the negotiation team anticipating that a Pre-development Agreement will be ready for Council consideration by the end of June 2022.

4.1.2     Geotech testing of the site, a critical part of due diligence, was completed by the end of May. The report on the test results is expected mid to late June 2022.

4.2      Housing opportunities

4.2.1     A workshop with elected members on the housing opportunities was held on 23 March.  The opportunity for housing either within the library site or as part of the wider precinct development can continue to be explored through until the concept design phase for the project. 

4.3      Sustainability objectives

4.3.1     Beca has been engaged to develop climate change mitigation and environmental sustainability objectives for the new building and surrounding landscaping. The draft report was received in late May, with the finalised report expected in early June.  This will be reported through to the Governance Reference Group in June and to the wider council as part of proposed regular communication updates.

 

4.4      Communication

4.4.1     It is proposed to provide short fortnightly updates to elected members on the progress of the Central Library Development project as part of the regular internal communication updates.  This will be in addition to quarterly major project reporting to Council.

4.4.2     Locally based Publik Agency has been engaged to lead the communication strand of work for the project. A draft communication strategy is currently being developed, which will be reported to Council for adoption at either its June or July meeting in accordance with the LTP resolution (see section 3.1 above).

4.4.3     It is anticipated that the first phase of communication will focus on context setting and building community excitement and engagement with the project. Pre-engagement discussions with key stakeholders will continue concurrently through this communication phase.

4.5      Community engagement process

4.5.1     Dates for the commencement of the wider community engagement process are still to be confirmed.  However, the process is likely to commence sometime after the conclusion of the DAPP engagement process.

4.5.2     Once dates are finalised, the first phase of engagement for the Central Library Development project, will inform the development of the brief for the concept design.

4.5.3     A range of engagement tools and methodologies will be used to raise awareness of the process and to make it easy for all Nelsonians to participate either in person, in print, online or via an 0800 number.

4.5.4     These include but are not limited to:

-        Shape Nelson – the key information source and where residents can sign up for regular email updates on the project

-        Public drop ins and pop ups at locations like the Farmers Market and Victory Centre

-        Social media surveys

-        Interactive booths at the Central Library and elsewhere.

 

1.       
A drawing of a house

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Figure 1  Concept sketch of interactive booths for Central Library

 

2.       
Figure 2  Detail of example imagery for each booth

 

4.6      Iwi Engagement

4.6.1     The Iwi Engagement Plan, being led by the Iwi Liaison officer, is continuing to progress.  It is advantageous that this process is proceeding ahead of the wider community engagement process.  An initial hui for the Central Library Development project is likely to be held in July.

5.       Finance

5.1      Budget expenditure is well within the estimates for the 2021/22 financial year. The following expenditure is to 31 May 2022.

5.2      Breakdown of actual project expense in 2021/22 financial year

5.3      Budget, forecast and actuals

6.       Risks

6.1      A detailed risk register has been prepared for the project, which is regularly updated as any new risks are identified, or risks are closed off.

6.2      Project risks continue to be actively monitored by the Project Control Group, Governance Reference Group and Steering Group.

7.       Conclusion

7.1      The land exchange negotiation with Wakatū Inc is progressing well, with results from the Geotech testing due in June. 

7.2      The negotiation team advises that it anticipates a Pre-Development Agreement will be ready for Council consideration by the end of June 2022.

7.3      The development of the Communication Strategy is progressing well, with a draft to be reported to Council for adoption at either its June or July meeting.

8.       Next Steps

8.1      The draft communications strategy will be presented to Council at either its June or July meeting for consideration and adoption.

8.2      A Central Library Development project hui with iwi will be scheduled potentially in July.

8.3      The dates for wider community engagement will be finalised.

 

Author:          Alice Heather, Central Library Development Project Director

Attachments

Nil


 

Item 10: Quarterly update on significant central government reform programmes

 

Council

14 June 2022

 

 

REPORT R26888

Quarterly update on significant central government reform programmes

 

1.       Purpose of Report

1.1      To provide Council a quarterly update on significant reform programmes impacting local government.

2.       Recommendation

 

That the Council

1.    Receives the report Quarterly update on significant central government reform programmes (R26888)

 

 

3.       Context

3.1      There are a large number of significant central government work programmes underway related to local government. They include:

3.1.1   Future for Local Government Review

3.1.2   Three Waters Reform programme

3.1.3   Resource Management Act reforms

3.1.4   Climate change policies

3.1.5   Civil defence changes

3.2      Collectively, these programmes will considerably change the operating environment for local government.

3.3      The Future for Local Government Review is looking at local government arrangements as a whole – what the sector does, how it does it and how it pays for it. The outcomes of the review will flow into the implementation of all the other changes.

3.4      Concerns have been raised regarding aspects of the reform programmes and their impact on local government. These include:

3.4.1   capacity for councils to respond to and prepare for these significant reforms, including resourcing

3.4.2   uncertainty around timeframes

3.4.3   having the right skills and qualified staff to implement the changes.

 

4.       Future for Local Government

Background

4.1      In April 2021 the Future for Local Government Review was established by the Minister of Local Government. The purpose of the review is to “identify how our system of local democracy needs to evolve over the next 30 years, to improve the wellbeing of New Zealand communities and the environment, and actively embody the treaty partnership”.[3]

4.2      The scope of the review includes the following aspects of local government:

4.2.1   Roles, functions and partnerships

4.2.2   Representation and governance

4.2.3   Funding and financing.

4.3      A Review Panel was appointed to undertake the review, which is being conducted in three stages:

4.3.1   Stage one – Early soundings to identify the initial scope and early engagement with local government.

4.3.2   Stage two – Engagement with individual councils and broader public engagement about the future of local governance alongside research and policy development. This will conclude with a report to the Minister with draft findings and recommendations.

4.3.3   Stage three – formal consultation about the draft recommendations. Submissions will be considered before the Review Panel delivers its final report in April 2023.

Key updates

4.4      In mid-2021, Council had a workshop to identify key themes and ideas on the review and the notes from this workshop were shared with the Review Panel.

4.5      On 8 October 2021, the Review Panel released its Interim Report, which outlined the priority issues, looked at the current state of play for local government and the context for change. In the report, the Panel outlined five priority questions they will consider when designing the most effective system of local governance.

4.6      Council had a workshop on 1 March 2022 to discuss the Interim Report and then met with the Review Panel on 29 March 2022 to discuss the five priority questions and provide feedback.

Next steps

4.7      After engagement with individual councils, the Review panel began work on the draft report, which will outline its findings and recommendations. While councils were engaged with directly, the general public now have an opportunity to express their views through an open survey until the end of June.

4.8      There are no actions for Council until the Review Panel delivers its draft report, due by 30 September 2022. Following this will be a formal consultation/engagement process.

 

5.       Three Waters Reform

Background

5.1      On 27 October 2021, the Government announced the next steps for the Three Waters Reform programme, including confirming the establishment of four water services entities to manage New Zealand’s drinking water, wastewater and stormwater networks, and mandating an “all in approach”. Nelson City Council has been placed in Water Service Entity C.

5.2      A water services regulator has been established, Taumata Arowai, which will enforce existing standards to ensure that drinking water suppliers provide safe drinking water to consumers, with significant penalties proposed, including fines and criminal proceedings, if suppliers do not comply.

5.3      On 10 November 2021, the Government announced the establishment of a Working Group made up of representatives from local government and iwi/Māori to consider how representation, governance and accountability for the new water service entities can be strengthened.

5.4      Council received reports providing updates on the reform programme at the 23 September 2021 and 8 December 2021 Council meetings.

Key updates

Recommendations from the Three Waters Working Group

5.5      In April 2022, the Government announced it would accept the vast majority of the Working Group’s recommendations, which means to:

5.5.1   provide for a public shareholding structure that makes community ownership clear, with shares allocated to councils reflective of the size of their communities (one share per 50,000 people)

5.5.2   further strengthen and clarify the role of the Regional Representative Group; with joint oversight from local councils and mana whenua to ensure community voice and provide tighter accountability from each water services entity board

5.5.3   maintain that board members are to be appointed based on skills and competency

5.5.4   strengthen connections to smaller communities including through local sub-committees feeding into the Regional Representative Group, to ensure all communities’ voices are considered as part of investment prioritisation

5.5.5   recognise and embrace Te Mana o te Wai – the health and wellbeing of our waterways and waterbodies – as a korowai, or principle, that applies across the water services framework.

Better off funding package

5.6      The Government is providing a better off funding package to local authorities in recognition of the significance to the local government sector (and the communities they serve) of the transfer of responsibility for water service delivery. The $2 billion package has been pre-allocated to councils based on a nationally consistent formula and is available in two tranches. The first $500 million is available from 1 July 2022 and the remaining $1.5 billion will be available from 1 July 2024.

5.7      Nelson City Council has access to $5.18million in the first tranche. Council needs to develop a funding proposal which demonstrates engagement with iwi/Māori, outlines how the projects meet the funding criteria, and undertake a wellbeing assessment setting out the expected benefits. Council’s process for the first tranche includes holding a workshop in late May for elected members to provide input on the appropriate criteria and projects to put forward in an application. Engagement with iwi will also be undertaken as the application is developed. The final application will come to a Council meeting for approval before being submitted to the Department of Internal Affairs.

5.8      Applications for tranche one funding close on 30 September 2022.

Establishing Water Service Entity C

5.9      Work is underway to establish the water service entities. Council staff are participating in multiple workstreams and steering groups. An internal project team has been established to build working relationships with the National Transition Unit and field its requests for information. Transition Reference Groups have been established at a national level to provide advice to the National Transition Unit. Council representatives have been confirmed on the “People & Workforce” and “Asset Management, Operations and Stormwater” reference groups. 

5.10    Council has also established a working group to respond to the large number of Three Waters related requests for information under the Local Government Official Information and Meetings Act 1987.

5.11    The Local Transition Team for Water Service Entity C was set up in May 2022 and comprises senior staff from each “Entity C” Council.  The Local Transition Team will form local working groups of subject matter experts to support the operational set up of the water service entity. An interim organisation, known as “Local Establishment Entity C”, is being set up this year, with recruitment for a Chief Executive and senior management roles taking place from July to December 2022. The Local Transition Team and related local working groups will then be absorbed into Local Establishment Entity C, which in turn will become Water Service Entity C on 1 July 2024.

Next steps

Water Services Entities Bill

5.12    The next stage of the Government’s programme is to release the draft Water Service Entities Bill for consultation, which is expected in
mid-2022. Council agreed at the 8 December 2021 meeting that community engagement will be undertaken prior to Council submitting on the draft legislation (8 December Council agenda, page 180).

5.13    Once the Water Services Entities Bill has been released and timeframes are understood, Council will make a submission to the Government, informed by feedback from the community.

 

6.       Resource Management Act 1991 (RMA) Reforms

Background

6.1      In February 2021, the Government announced it would repeal the RMA and enact new legislation. The three proposed acts are:

6.1.1   Natural and Built Environments Act, as the main replacement for the RMA, to protect and restore the environment while better enabling development

6.1.2   Strategic Planning Act, requiring the development of
long-term regional spatial strategies to help coordinate and integrate decisions made under relevant legislation

6.1.3   Climate Adaptation Act, to address complex issues associated with managed retreat.

6.2      The Government released an exposure draft of the Natural and Built Environments Act in June 2021 and invited submissions. Council provided its submission and highlighted concerns around the lack of detail in the draft legislation, governance arrangements, and a proposal for Nelson, Tasman and Marlborough councils to produce a combined natural and built environment plan as well as a combined spatial plan.

6.3      The Environment Select Committee met in September 2021 to hear submissions. Any changes to the Natural and Build Environments Act will be made before the Bill is formally introduced. An officer is involved in groups working through the potential content of the legislation and understands it will have significant changes to plan development and process, as well as resource consenting and compliance. A transitional process and timeline is anticipated.

6.4      To date, no draft or preliminary proposals for the Strategic Planning Act or Climate Adaptation Act have been released for public input.

6.5      More detail on how the RMA reforms will impact on the Council’s climate change programme is provided in the subsequent section on upcoming climate change policies.

Key updates

6.6      There will be requirements for new plans to be developed under the Strategic Planning Act and the Natural and Built Environments Act, but it is unclear to what extent they will differ from existing plans or how work can transition from the draft Whakamahere Whakatū Nelson Plan into the new plans. The decision by the Government as to whether combined plans are required across Te Tau Ihu will determine the future path of this work for Nelson.

6.7      The draft Natural and Built Environments Act has provided some areas of change. These changes include a shift towards plans creating more certainty and less consenting requirements; different plan making processes; a focus on environmental outcomes; and much greater demands on environmental system modelling, monitoring and reporting. Changes were also signalled to the consenting and compliance processes.

6.8      In addition, if the proposed single ‘combined plan’ for Nelson, Tasman and Marlborough proceeds, or any form of joint plan making, changes will be required to administration, governance and management arrangements. Arrangements and agreements with iwi are likely to change, and new relationships formally established with central government agencies.

6.9      The extent of uncertainty arising from the reforms partially contributed to a decision by the Council to pause the Whakamahere Whakatū Nelson Plan programme in November 2021 – this programme included a full review of Nelson’s resource management plans, including the Regional Policy Statement, Nelson Resource Management Plan (including Coastal Plan) and Air Quality Plan. The decision to pause aimed to minimise the inefficient use of funds or staff time that would be involved in the plan making process. However, it was recognised that work needed to continue in relation to housing, climate change, freshwater and air quality.

6.10    No change was made to the Long Term Plan 2021- 2031, due to the uncertainty around legislative requirements and a combined plan. The Long Term Plan budget will need to be reassessed once there is greater certainty about planning and monitoring requirements, system requirements and governance arrangements. The additional resourcing demands may be significant – including staffing requirements.

Next steps

6.11    Introduction of the Natural and Build Environments Bill is expected in the second or third quarter of 2022. Another round of public consultation will follow this as part of the standard legislative process.

6.12    The Strategic Planning Act is anticipated for release in the third quarter of 2022. The Climate Adaptation Act may not be released until 2023.

 

7.       Upcoming climate change policies

Background

7.1      A number of significant national-level climate change policies are expected in 2022 and 2023, including the Emissions Reduction Plan, the National Adaptation Plan and the RMA reforms.

Key updates

Emissions Reduction Plan and emissions budgets

7.2      In May 2022, Central government released the Emissions Reduction Plan and set national-level emissions budgets for the periods 2022–2025, 2026–2030 and 2031–2035. Emissions budgets will act as interim targets to reduce greenhouse emissions and move progressively towards New Zealand’s 2050 targets. The Emissions Reduction Plan sets out how the emissions budgets will be met. This plan is likely to have significant implications for local government, in particular through new policies on waste, building and construction, transport and energy.

 

National Adaptation Plan

7.3      The first National Adaptation Plan will set direction on how New Zealand will adapt to the unavoidable impacts of climate change and address key climate risks up to 2028 (as identified in the National Climate Change Risk Assessment which was published in 2020). A draft of the National Adaptation Plan was released for consultation on 28 April 2022, along with proposed policies on managed retreat which will inform the development of the proposed Climate Adaptation Act. The draft National Adaptation Plan focuses on three key areas:

7.3.1   Reforming institutions to be fit for a changing climate

7.3.2   Providing data, information and guidance to enable everyone to assess their own climate risks

7.3.3   Embedding climate resilience across government strategies and policies.

7.4      Submissions on the draft plan close on 3 June. Council will make a draft submission by the 3 June deadline, and it will be considered by elected members for retrospective approval on 16 June.

7.5      The Climate Change Response Act 2022 requires the National Adaptation Plan to be produced every six years. The first plan is due to be finalised in August 2022.

Resource management reforms and the Council’s climate change programme

7.6      The resource management reforms, discussed in section 6 of this report, will also have a significant impact on Council’s climate change programme. The Government plans to introduce the proposed Climate Adaptation Act into Parliament in 2023. The Act will provide local government with tools to address legal and technical issues associated with managed retreat and for funding and financing climate adaptation. The Government is currently consulting on managed retreat proposals, alongside the draft National Adaptation Plan. The proposed Natural and Built Environments Act will set outcomes, limits and possibly also targets relating to climate change. The Strategic Planning Act will mandate the use of spatial planning and enable integrated environmental planning which considers climate change, future infrastructure provision and other matters.

7.7      As an interim measure prior to resource management reform being in place, the Resource Management Act 1991 will be amended on
30 November 2022 to remove the current statutory bar on consideration of greenhouse gas emissions in planning and consenting processes. This could have a significant impact, particularly on resource consents. The Government is expected to provide further direction on the scope of this legislative amendment before the amendments coming into effect.

 

8.       Civil defence changes

Background

8.1      The National Emergency Management Agency has established a Regulatory Framework Review Programme to bring together three projects that have significant alignment. The projects are:

8.1.1   changing the legislation

8.1.2   reviewing the National Civil Defence Emergency Management Plan and the accompanying guide

8.1.3   developing the roadmap for the National Disaster Resilience Strategy.

8.2      The aim of the changes is to build a modern, fit-for-purpose, enduring framework for an emergency management system so that:

8.2.1   communities better understand the risks they face, and are better prepared to respond to and recover from emergencies

8.2.2   iwi and Māori participation is recognised, enabled, and valued

8.2.3   the emergency management system is well-coordinated, high performing and enjoys widespread trust and confidence

8.2.4   the impacts of emergencies on people, the economy, and the environment are reduced.

8.3      In late 2020, the National Emergency Management Agency established a new Policy Unit to lead the Regulatory Framework Review Programme to bring together three projects that will enable New Zealand to achieve its emergency management system reforms.

8.4      This builds on previous work, including the development of the National Disaster Resilience Strategy and the Government’s response to a Technical Advisory Group’s report into how New Zealand responds to natural disasters and other emergencies.

8.5      In December 2021, the Minister for Emergency Management announced that a new Emergency Management Bill would replace the Civil Defence Emergency Management Act 2002.

Key updates

8.6      In early 2022, the National Emergency Management Agency undertook targeted engagement with people working in local and regional emergency development, providing the Modernising the Emergency Management Framework discussion document for feedback. The framework specifically asked for feedback on:

8.6.1   roles and responsibilities within the civil defence emergency management sector and amongst partnering agencies

8.6.2   the future state of the current emergency management system (including welfare needs, and people disproportionately impacted by emergencies)

8.6.3   iwi and Māori involvement in emergency management

8.6.4   developing actions to form the roadmap for the National Disaster Resilience Strategy.

8.7      In February 2022, the Nelson Civil Defence Emergency Management Group provided feedback, which, in general, supported the need for change to modernise New Zealand’s emergency management system and the proposals within the document. The Group noted the case for change was evident with the outcomes from the review of the response to the Canterbury earthquakes of 2011 and subsequent recovery, and further endorsed in the many reviews that followed. However, the Group raised concerns about the ability of the National Emergency Management Agency, civil defence emergency management groups, partners and response agencies to deliver on what is being proposed. Concerns centred around requiring additional resources that are not currently budgeted for.

8.8      Following targeted engagement, the National Emergency Management Agency started developing options to address the issues raised.

Next steps

8.9      Between April and October 2022, the Government will develop policy proposals and draft the Bill, which is intended to be introduced to the House after the 2022 local government elections and submissions are likely to be called for in November 2022.

 

9.       Conclusion

9.1      This report provided an update on significant central government reform programmes underway that, together, will significantly change how local government operates and delivers services.

9.2      Further updates will be provided in September and December 2022.

 

Author:          Ailish Neyland, Policy Adviser

Attachments

Nil


 

Item 11: Nelson Regional Development Agency Statement of Intent 2022/2023

 

Council

14 June 2022

 

 

REPORT R26709

Nelson Regional Development Agency Statement of Intent 2022/2023

 

 

1.       Purpose of Report

1.1      To seek Council approval for the Nelson Regional Development Agency (NRDA) Statement of Intent (SOI) 2021-2024 as updated in March 2022.

2.       Summary

2.1      The NRDA has provided an updated SOI for Council consideration for the 2022/23 period. The NRDA has a three year SOI covering the 2021-2024 period, which has previously been approved by Council. The NRDA is required to provide an annual SOI which updates the previously approved work programme for approval by Council.

3.       Recommendation

 

That the Council

1.    Receives the report Nelson Regional Development Agency Statement of Intent 2022/2023 (R26709) and its attachment (A2901525); and

2.    Agrees that the Nelson Regional Development Agency Statement of Intent 2022/23 meets Council’s expectations and is approved as the final Statement of Intent for 2022/23.

 

 

4.       Background

4.1      The NRDA, along with other Council Controlled Organisations (CCOs), must submit a draft SOI annually indicating its proposed activities for the following year. Schedule 8 of the Local Government Act 2002 outlines the purpose of a SOI, what is to be included and how it is to be approved. The draft SOI 2022/23 prepared by the NRDA, in collaboration with Council, is attached (Attachment One: A2855278). The SOI supplied by the NRDA is compliant with the legislation.

4.2      At its meeting of 18 March 2021 Council approved a three-year SOI for the NRDA. This is the first time the NRDA SOI covers a three-year period, which is intended to enable longer term planning, and this is the first update of the SOI which reflects changes to the work programme. This SOI needs to be updated every year, however Council does not need to provide further Letters of Expectation unless the strategic direction required changes substantially.

4.3      The updated SOI focuses on long term outcomes such as achieving a regenerative, productive, inclusive, resilient, and creative economy. Strategic priorities include integrating climate change, wellbeing, and economic resilience across work programmes. The Nelson Tasman Regeneration Plan 2021-2031 (Project Kōkiri 2.0) remains a key focus. Support for sector transitions, Māori economic development and economic insights and analysis continue.

4.4      The NRDA continues to collaborate across a range of sectors to respond to central government policy priorities regarding industry transformation, migration settings regarding seasonal labour, climate change adaptation and mitigation including just transitions, the importance of the Māori economy, and technology change.

4.5      The NRDA Chair Meg Matthews, Chief Executive Fiona Wilson, and the NRDA management team will attend the meeting to answer any questions about this SOI.

5.       Discussion

          Changes outlined in SOI 2022/2023

5.1      This SOI is an update to the full three year 2021-2024 SOI and includes technical updates, changes to language, updated data/economic information, COVID 19 responses, the decision to close the Nelson i-SITE, the government’s decision not to fund Destination Management Plan implementation, confirmation of the Regional Business Partnership funding and Tourism-Conservation jobs broker role, and emerging opportunities. It reflects findings from the 2021/22 period.  Updates in the SOI 2022/2023 are outlined below.

COVID-19

5.2      The SOI 2022/2023 acknowledges the need to maintain responsiveness in the operating environment due to COVID-19.

Change of Language

5.3      Moving language from ‘recovery’ to ‘working to support through the ongoing impacts of COVID-19.

5.4      ‘Visitor’ in place of ‘Tourist’ to reflect the increased importance of domestic tourism.

Data and economic information

5.5      This has been updated to include 2021 information and references in line with extended/new and current economic profiling.

Nelson i-SITE and in-region visitor information

5.6      The SOI has been updated to reflect findings from the review of the Nelson iSITE model and the decision to close the current Nelson i-SITE for up to 24 months while the NRDA works on a long-term solution and international visitor demand returns.

5.7      Under Destination Profiling the NRDA will be providing in-region support to visitors through a range of website, maps, digital promotion and phone support. In 2022-24 the NRDA will determine with Council, the appropriate new model for in-person visitor information support, following the closure of the Nelson i-SITE in 2022. This work is also reflected under the Summary Work Plan section.

5.8      The NRDA will host a pilot Tourism-Conservation Jobs Broker position throughout 2022-24 which is noted in this updated SOI.

Destination Management Plan

5.9      The SOI reflects confirmation there is no further funding for the Destination Management Plan implementation which will impact delivery, as is shown under the Strategic Priorities, and Financial Performance sections. The NRDA will continue to work on securing private sector funding for this work.

Regional Business Partners Program

5.10    The recent confirmation from the Ministry of Business, Innovation and Employment (MBIE) that the NRDA is the preferred provider for the Regional Business Partner Network across Nelson, Tasman and Marlborough has been added to the SOI. The Financial Performance section has been updated to reflect this funding. Further details are still to be negotiated with MBIE.

Workforce Skills and Development

5.11    As part of the Regional Business Partnership Program the NRDA is now delivering the government funded 12-month digital boost service to businesses, which is now reflected in the Measures of Success and Summary Work Plan sections.

5.12    The NRDA support of the business case to secure a Skills Hub in Nelson is reflected under the Summary Work Plan section.

 

Creative Economy

5.13    The work the NRDA is doing to support the Creative Economy has been made more explicit in this SOI, and will include profile building, productivity initiatives, and strengthening of the region’s film profile.

           Investment Attraction

5.14    A Tasmanian Trade delegation visit in the first quarter of 2022/23 has now been confirmed and work on the Briefing for Ministers has been added to the SOI.

5.15    Key Performance Measures

5.16    Additions have been made to some key performance measures to support emerging opportunities and Business Plan targets which were finalised post the adoption of the SOI 2021-2024. Some adjustments have been made to the Strategic Framework based on an updated and ‘realistic’ lens.

5.17    References have been included to emerging opportunities such as the Oceans Economy, Te Tauihu Film and the Productivity Project.

Resourcing and Funding

5.18    Findings from 2021 work and new information have been used to inform adjustments in resource allocations. For example, adjustments to support separate programmes for Horticulture and Food and Beverage have been made to move towards a combined focus on the Food and Fibre sector.

5.19    The SOI 2022/2023 highlights that the funding situation continues to be key to programme delivery.

5.20    The main financial changes include the updated government revenue from the Regional Business Partners Program, and the Tourism-Conservation jobs broker role and reflection of the confirmation there is no funding for implementation of the Destination Management Plan.

5.21    The SOI update includes reference to the review of the i-SITE delivery model in 2021/22 finding the current model to be financially unviable.  Resource implications from emerging opportunities and 2021 funds are through adjustment of existing resources and do not involve any change to overall resource levels.

5.22    The E2E funding is confirmed to June 2023.

Strategic Framework

5.23    The SOI provides the Strategic Framework Model for the NRDA. The four strategic priority activity areas are:

 

5.23.1 Economic strategy and innovation

·   Strategic economic development

·   Te Tauihu Māori economy

·   Economic intelligence

5.23.2 Industry sector resilience

·   Sector transitions and growth

·   Visitor sector regeneration

5.23.3 Investment attraction and promotion

·   Regional identity and proposition

·   Investment attraction

·   Destination profiling

·   Strategic events

5.23.4 Business and workforce development

·   Workforce and skills development

·   Business innovation

5.24    Changes to the Strategic Framework in the updated SOI are:

 

Current (SOI 2021-2024)

Change (SOI 2022/2023)

Supporting industry transformation

Supporting industry growth, capacity and regeneration

Outputs: Sector Transitions and Growth

Targets sector support initiatives

Outcomes: Nelson Tasman has a zero-carbon circular economy

Nelson Tasman is a national leader in progress towards a zero-carbon economy

Vulnerable communities have greater access to employment opportunities

Vulnerable communities are supported to have access to employment opportunities through clear partnerships in place between the range of regional agencies.

Draft SOI reviewed by Chair and Independent member of Audit, Risk and Finance subcommittee

5.25    Independent subcommittee members John Peters and John Murray, alongside Council staff, reviewed the draft SOI on 21 March 2022. It was noted that financial information and additional information around risks were required prior to the draft SOI coming to Council for adoption. These comments were passed onto the NRDA. This information has been provided in the draft SOI for Council adoption.

5.26    Mr Peters and Mr Murray also highlighted the different funding levels provided by Nelson City and Tasman District councils. It was noted this is not a new issue but given inflationary pressures a fixed contribution by Tasman District Council needs to be reflected in the NRDA’s work programme. The NRDA recognises that this has been noted previously and that additional support from Tasman District Council to enable service delivery of Project Kokiri 2.0 could be on a more equitable level of funding to Nelson City Council.

6.       Options

6.1      Council can approve the SOI or provide feedback to the NRDA in respect of changes to the SOI.

6.2      If Council does not approve the SOI, then it must take all practicable steps under Clause 5 of Schedule 8 of the Local Government Act to modify the SOI.

 

Option 1: Approves the SOI (Recommended option)

Advantages

·   Gives clarity to the NRDA and Council on direction for 2022/2023

Risks and Disadvantages

·   None identified

Option 2: Does not approve the SOI and modifies the SOI under Clause 5 of Schedule 8 of the Local Government Act

Advantages

·    Allows Council to set a different direction

Risks and Disadvantages

·    Lack of clarity for the NRDA and Council

·    Creates uncertainty in the relationship between Council and the NRDA

·    Creates inconsistency with the already approved three year 2021-2024 SOI

 

7.       Conclusion

7.1      Officers are of the opinion that the draft SOI adequately aligns with Council expectations and can be adopted as the final SOI for 2022/23.

8.       Next Steps

8.1      If agreed, officers will advise the NRDA that the SOI is approved. If not agreed, officers will advise of necessary changes to the SOI.

 

Author:          Pip Jamieson, Manager Strategy

Attachments

Attachment 1:   A2901525 NRDA Statement of Intent 2022 V4 updated@3.6.22  

 

Important considerations for decision making

1.      Fit with Purpose of Local Government

Section 64 of the Local Government Act requires the adoption of a Statement of Intent for every CCO.

2.     Consistency with Community Outcomes and Council Policy

The recommendation algins with the following Community Outcomes:

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

·     Our region is supported by an innovative and sustainable economy

3.     Risk

There is still a large degree of uncertainty in regard to COVID-19 and the impact on the economic outlook and recovery for Nelson Tasman. These risks need to be managed and are built into the approach taken by the NRDA.

Aspects of the SOI are dependent on the nature of central government funding supporting being made available. Continued support from partners and stakeholders, such as Council and businesses, is critical to the successful delivery of the SOI.

4.     Financial impact

There are no new financial implications arising from the recommendations in this report.

5.     Degree of significance and level of engagement

The adoption of the SOI is of low significance to the community, business, and iwi as this is an update of the 2021-2024 SOI.

6.     Climate Impact

The NRDA acknowledge that climate change is one of the major risks facing the region. Components of delivering on the necessary transition towards a low carbon and more resilient economy are factored into the work of the NRDA.

Several key activities to deliver in the areas of climate change and sustainability are included in the SOI. 

7.     Inclusion of Māori in the decision making process

No engagement with Māori has been undertaken in preparing this report.

8.     Delegations

Council retains all responsibilities, powers, functions and duties in relation to governance matters for the following items:

·     Regional economic development, including Nelson Regional Development Agency and Uniquely Nelson.

 


Item 11: Nelson Regional Development Agency Statement of Intent 2022/2023: Attachment 1

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[3] To learn more about the reform, please go to the Department of Internal Affairs website, https://www.dia.govt.nz/Future-for-Local-Government-Review