That the Council

1.    Confirms the minutes of the meeting of the Council, held on 8 June 2023, as a true and correct record.

That the Council

1.    Confirms the minutes of the meeting of the Council, held on 22 June 2023, as a true and correct record.

That the Council

1.    Receives the report Mayor's Report (R27770) and its attachments (1118544611-7172, 1118544611-7173, 1118544611-7174, 1118544611-7175, 1118544611-7164); and

2.    Supports, as a necessary step to achieve a successful response to its continued procurement of a development partner via open tender for the City Centre Housing Development (on 69-101 Achilles Ave and 42 Rutherford St), Kāinga Ora’s intention to include the possibility of the development having a portion of market housing; and

3.    Notes that in line with Council’s decision to increase funding for Kotahitanga mō te Taiao Alliance from $20,000 to $40,000, Tasman District and Marlborough District Councils have each agreed to match this increase; and

4.    Notes the attached submission by His Worship the Mayor on the Water Services Entities Amendment Bill (1118544611-7174); and

5.    Request Council officers to provide a report on the financial implications and implementation of the recommendations of the Report on the review of Nelson Festivals Trust reserves (1118544611-7175); and

6.    Considers the proposed Remits to the Local Government New Zealand AGM 2023, as discussed:

a.  Remit 1: Allocation of risk and liability in the building  sector – support/not support/confirm at the AGM;

b.  Remit 2: Rates rebate - support/not support/confirm at the AGM;

c.   Remit 3: Roading/transport maintenance funding - support/not support/confirm at the AGM;

d.  Remit 4: Local election accessibility - support/not support/confirm at the AGM;

e.  Remit 5: Ability for co-chairs at formal meetings – support/not support/confirm at the AGM;

f.   Remit 6: Parking infringement penalties - support/not support/confirm at the AGM;

g.  Remit 7: Rural and regional public transport - support/not support/confirm at the AGM;

h.  Remit 8: Establishing resolution service - support/not support/confirm at the AGM;

i.   Remit 9: Earthquake-prone buildings – support/not support/confirm at the AGM;

j.   Remit 10: KiwiSaver contributions for Elected Members - support/not support/confirm at the AGM;

k.  Remit 11: Audit NZ fees - support/not support/confirm at the AGM.

That the Council

1.    Receives the report Community Investment Funding Update - Small Grants Round June 2023 (R27749) and its attachments (636034393-11456 and 636034393-11464); and

2.    Receives the minutes from the Community Investment Fund meeting held on 7 June (unconfirmed) and notes the funding decisions taken.

That the Council

1.    Receives the report Elma Turner Library Seismic Strengthening Project - Additional Budget  (R27738) and its attachment (196698121-47508); and

2.    Approves the addition of $940,000 unbudgeted capital expenditure in the 2023/24 financial year to allow for the full reopening of the Elma Turner Library.

That the Council

1.    Receives the report Long Term Plan 2024-2034 - Draft Significant Forecasting Assumptions (R27697) and its attachment (1852948764-211); and

2.    Approves the Draft Significant Forecasting Assumptions that will be used to inform development of the Long Term Plan 2024-2034 (1852948764-211).

That the Council

1.    Receives the report August 2022 Extreme Weather Event Recovery - Quarterly Update (R27503) and its attachment 1590798627-594; and

2.    Approves retrospectively unbudgeted estimated expenditure between 31 December 2022 and 30 June 2023 as part of the August 2022 extreme weather event recovery of $8.2M; and

3.    Approves retrospectively unbudgeted estimated expenditure between May 2023 and 30 June 2023 as part of the May 2023 weather event response of $1.42M.

That the Council

1.    Receives the report Appointment of Commissioners - Nelson Airport Limited (R27769); and

2.    Approves the appointment of three independent Commissioners to hear and recommend on submissions received in relation to Private Plan Change 30 and the accompanying Notice of Requirement; and

3.    Notes that the Group Manager Environmental Management has delegated authority to select the credentialed Commissioners.

1

Council Meeting - Confidential Minutes - 8 June 2023

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)(b)(ii)

     To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

·    Section 7(2)(i)

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

·    Section 7(2)(h)

     To enable the local authority to carry out, without prejudice or disadvantage, commercial activities

2

Mayor's Report - LGNZ office appointments

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

3

Appointment of Independent Member - Audit, Risk and Finance Committee

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

4

Appointment of Directors to the Nelson Marina Council Controlled Organisation Board

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

5

Nelson Centre of Musical Arts Two-Year Debt Repayment Suspension

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)(h)

     To enable the local authority to carry out, without prejudice or disadvantage, commercial activities

6

Nelson Events Fund application - International Cricket Series

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

·    Section 7(2)(i)

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

His Worship the Mayor Hon Dr Smith acknowledged former Councillor Derek Shaw’s award in the Kings Birthday honours list for advocacy in environmental, community and sporting causes in the Nelson region. As a Nelson City councillor between 1984-2013, Mr Shaw helped develop the city’s biodiversity strategy, the Nelson Biodiversity Forum, Council’s programme to restore the health of the Maitai River and development of the Waimea Inlet Strategy and Action Plan.

Resolved CL/2023/111

That the Council

1.    Acknowledges former Councillor Derek Shaw’s award of the New Zealand Order of Merit for services to the environment, local government and athletics in the recent Kings Birthday Honours.

His Worship the Mayor/Sanson                                                      Carried

Resolved CL/2023/112

That the Council

2.    Receives and accepts the apologies from Councillor M Anderson for lateness.

His Worship the Mayor/Rollo                                                          Carried

Attachments

1    1982984479-6078 - Citizens Advice Bureau Nelson Tasman Inc.

Resolved CL/2023/113

That the Council

1.    Confirms the minutes of the meeting of the Council, held on 4 May 2023, as a true and correct record.

His Worship the Mayor/Sanson                                                      Carried

Resolved CL/2023/114

That the Council

1.    Confirms the minutes of the meeting of the Council, held on 25 May 2023, as a true and correct record.

Rainey/Brand                                                                                Carried

Recommendation to Council CL/2023/115

That the Council

1.    Approves the below changes to Council’s Section 17A review process:

a.     Increase the value threshold that triggers a service delivery review under Section 17A of the Local Government Act 2002 from $100,000 to $1 million per annum; and

b.    The Chief Executive provides a report to Council at the start of the Triennium listing all Section 17A Reviews to be undertaken over the three years, at which time Council may indicate any reviews that should be reported back to Council; and

c.     Delegate the Chief Executive responsibility to sign off reviews unless they meet a threshold of either:

i.     proposing considerable change to the service’s delivery and/or

ii.    is assessed as being of medium or high significance against Council’s Significance and Engagement Policy; and

d.    An annual report be presented to Council on progress and outcomes of Council’s Section 17A reviews.

Sanson/Courtney                                                                          Carried

Recommendation to Council CL/2023/116

That the Council

1.    Approves the Draft Annual Internal Audit Plan for the year to 30 June 2024 (1194974384-3368).

Paki Paki/Courtney                                                                        Carried

Resolved CL/2023/117

That the Council

1.    Receives the report Infrastructure Holdings Limited (R2772525) and its attachments (1511110536-695, 1511110536-698 and 1511110536-699).

Recommendation from the Joint Shareholders Committee 22 May 2023.

The Council notes as follows:

Purpose

A     the purpose is to seek Council’s approval for:

a)    the necessary amendments to update the form (previously approved by each of Nelson City Council (NCC) and Tasman District Council (TDC)) of each of:

i.      the Infrastructure Holdings Limited (IHL) Shareholders’ Agreement to be in the form attached (1511110536-695) (Shareholders’ Agreement);

ii.     the Agreement for Sale and Purchase of Shares in Port Nelson Limited (PNL) and Nelson Airport Limited (NAL) in the form attached (1511110536-698) (Agreement for Sale and Purchase of Shares) under which the shares of PNL and NAL are to be transferred from NCC and TDC to IHL;

iii.      Unanimous Shareholder Resolutions and Entitled Persons’ Agreement in relation to the “Restructuring Transactions” (as defined in the Council’s previous resolutions [CL/2022/226] (1982984479-6044) (1511110536-699); and

b)    an updated resolution for the purposes of section 50 of the Companies Act 1993 (Act) (1511110536-699)

Share values

B.    when the Joint Shareholders Committee previously approved and recommended to each of NCC and TDC (in RJSC22-6-1) the form of a Shareholders’ Agreement for IHL and an Agreement for Sale and Purchase of Shares in PNL and NAL, the values for the shares in each of PNL and NAL were recorded at book value (being, at that time, $8,446,000 in total); and

C.     upon the incorporation of IHL on 17 January 2023, NCC and TDC each subscribed for 42,230 ordinary shares in IHL (being 84,460 ordinary shares in total) (Initial Shares), at an issue price of $100.00 per share (Initial Share Issue). The total subscription amount for the Initial Shares was therefore $8,446,000 (Initial Subscription Amount). This was equal to the aggregate book value of PNL and NAL, as determined at the time that RJSC22-6-1 was approved. The consideration for the Initial Shares (being the Initial Subscription Amount) remains unpaid and will be paid to IHL in accordance with the Shareholders’ Agreement (that is to be approved in these resolutions); and

D.     Deloitte has now advised that the share values for each of PNL and NAL need to be recorded at market value (being the value of net assets as at 31 March 2023) for the purposes of the transfer of those shares from NCC and TDC to IHL on 1 July 2023. Deloitte has valued the net assets of:

i.      NAL at $103,700,000; and

ii.     PNL at $275,700,000,

resulting in a total net asset value of $379,400,000 for PNL and NAL combined (New Valuation); and

E.     in order for IHL to be capitalised in an amount equal to the purchase price for the shares in PNL and NAL (being $379,400,000), it will be necessary for NCC and TDC to each subscribe for a further 1,854,770 ordinary shares in IHL (being a further 3,709,540 ordinary shares in total) (Second Shares) at an issue price of $100.00 per share (Second Share Issue).  The total consideration for the Second Share Issue will be $370,954,000 and will also be paid in accordance with the Shareholders’ Agreement; and

F.     the Shareholders’ Agreement and the Agreement for Sale and Purchase of Shares have been updated from the form provided at 22 September 2022, to reflect the New Valuation and the Second Share Issue; and

G.     Entitled persons’ approvals will be required under the Act prior to IHL’s entry into the Shareholders’ Agreement and Agreement for Sale and Purchase of Shares, on the basis that (among other reasons already notified to this Council) the Second Share Issue will be undertaken in accordance with:

i.       section 107(2) of the Act so that the Second Shares may be issued otherwise than in accordance with sections 42, 44 or 45 of the Act; and

ii.      clause 3.4 of IHL’s constitution;

H.    The Council resolution at 22 September 2022, noted at items G., H., I., and S. that:

G.    As part of the proposal to incorporate IHL, it is proposed that each of the Shareholders transfer all their shares in PNL and NAL to IHL (Share Sale) for $8,446,000 in total (Purchase Price). The Purchase Price will be owed to the Shareholders in equal portions (being $4,223,000 each). The Crown holds, and will continue to hold, one special “Kiwi Share” in NAL.

H.    The Purchase Price allocation is:

a)     $2,400,000 for the shares in NAL; and

b)     $6,046,000 for the shares in PNL.

I.     Nelson City Council and Tasman District Council will each subscribe for 42,230 ordinary shares in IHL (being 84,460 ordinary shares in total) (Initial Shares), at an issue price of $100.00 per share (Initial Share Issue). The total subscription amount for the Initial Shares is therefore $8,446,000 (Initial Subscription Amount), which is equal to the Purchase Price.

S.    The Restructuring Proposals and the Financing Proposals will require the approval of the Shareholders as:

a)    the proposals are, or may be, “major transactions” (as defined in section 129 of the Companies Act 1993 (Act));

b)    the Initial Share Issue and the New Share Issue require the agreement of IHL’s entitled persons (as that term is defined in the Act) for the purposes of section 107(2) of the Act. The only entitled persons of IHL will be the Shareholders; and

c)    Nelson City Council and Tasman District Council (as the shareholders of IHL) must consent, for the purposes of section 50 of the Act and for all other purposes, to becoming the holder of the Initial Shares and the New Shares.

That the Council:

1.    Amends clauses G., H., I., and S. of Resolution CL/2022/226 of the Council meeting on 22 September 2022, to reflect the New Valuation, the Second Share Issue and the updated form of Unanimous Shareholder Resolutions and Entitled Persons’ Agreement, as follows:

G.    As part of the proposal to incorporate IHL, it is proposed that each of the Shareholders transfer all their shares in PNL and NAL to IHL (Share Sale) for $379,400,000 in total (Purchase Price). The Purchase Price will be owed to the Shareholders in equal portions (being $189,700,000 each). The Crown holds, and will continue to hold, one special “Kiwi Share” in NAL.

H.    The Purchase Price allocation is:

a)     $103,700,000 for the shares in NAL; and

b)     $275,700,000 for the shares in PNL.

I.     Upon incorporation of IHL, Nelson City Council and Tasman District Council each subscribed for (and IHL issued) 42,230 ordinary shares in IHL (being 84,460 ordinary shares in total) (Initial Shares), at an issue price of $100.00 per share (Initial Share Issue). The total subscription amount for the Initial Shares is therefore $8,446,000 (Initial Subscription Amount) which will be paid for in accordance with IHL’s Shareholders’ Agreement.  Since IHL’s incorporation on 17 January 2023, Deloitte has valued the shares in PNL and NAL at a total combined value of $379,400,000.  Accordingly, in order to capitalise IHL in an amount equal to the Purchase Price, Nelson City Council and Tasman District Council will each subscribe for a further 1,854,770 ordinary shares in IHL (being a further 3,709,540 ordinary shares in total) (Second Shares) at an issue price of $100.00 per share (Second Share Issue).  The consideration for the Second Share Issue will also be paid in accordance with the Shareholders’ Agreement. 

S.    The Restructuring Proposals and the Financing Proposals will require the approval of the Shareholders as:

a)      the proposals are, or may be, “major transactions” (as defined in section 129 of the Companies Act 1993);

b)      the Initial Share Issue requires the agreement of Nelson City Council and Tasman District Council as IHL’s shareholders and only entitled persons (as that term is defined in the Companies Act 1993) for all purposes (including to meet any requirement under the Companies Act 1993).

c)      the Second Share Issue and the New Share Issue require the agreement of IHL’s entitled persons (as that term is defined in the Companies Act 1993) for the purposes of section 107(2) of the Companies Act 1993, and for the purposes of clause 3.4 of IHL’s constitution.

d)      Nelson City Council and Tasman District Council (as the shareholders of IHL) must consent, for the purposes of section 50 of the Companies Act 1993 and for all other purposes, to becoming the holder of the Initial Shares, Second Shares and the New Shares; and

2.    Consents, for the purposes of section 50 of the Companies Act 1993 and for all other purposes, to being the joint owner in equal shares of the Initial Shares, Second Shares and the New Shares; and

3.    Approves the Shareholders’ Agreement, Agreement for Sale and Purchase of Shares, and Unanimous Shareholder Resolutions and Entitled Persons’ Agreement that will apply in place of the form of these documents previously approved by Council.

His Worship the Mayor/Benge                                                        Carried

Attachments

1    1511110536-699 Unanimous Shareholder Resolutions and Entitled Persons’ Agreement in relation to the “Restructuring Transactions”

2    1982984479-6089 - Infrastructure Holdings Limited presentation

Attachments

1    1982984479-6088 - Nelson Youth Council presentation

Resolved CL/2023/118

That the Council

1.    Receives the report City for All Ages Update (R27711).

O'Neill-Stevens/Sanson                                                                 Carried

Resolved CL/2023/119

That the Council

1.    Receives the report Mayor's Report (R27734); and

2.    Agrees that His Worship the Mayor, on behalf of Council, write to the Minister of Health and Te Whatu Ora officials seeking an urgent briefing to the full Council by Ministers and/or officials on the Nelson Hospital redevelopment project and commits Council to work collaboratively with Te Whatu Ora and Government on resolving the redevelopment; and

3.    Agrees that Tasman District Council Elected Members be invited to the briefing from Te Whatu Ora on the Nelson Hospital redevelopment project; and

4.    Acknowledges the people involved with managing the May 2023 weather event; and

5.    Acknowledges the engineering team for the emergency river works in the Whangamoa River following the August 2022 weather event that prevented further damage and isolation for the Kokorua community in the May 2023 heavy rainfall event.  

His Worship the Mayor/Rollo                                                          Carried

Attachments

1    1118544611-7145 Andrew Little article January 23 2021

2    1118544611-7144 OIA Redacted

3    1118544611-7146 - Letter from Rachel Boyack regarding Nelson Hospital Rebuild

Resolved CL/2023/120

That the Council

1.    Receives the report National Policy Statement - Urban Development Annual monitoring report 2021/2022 (R27674) and its attachment (336940202-6957); and

2.    Approves publishing the report National Policy Statement on Urban Development, Nelson-Tasman Joint Monitoring Report, June 2022 (336940202-6957) on the Council’s website.

Skinner/O'Neill-Stevens                                                                Carried

1

Council Meeting - Confidential Minutes - 4 May 2023

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7.

The withholding of the information is necessary:

·    Section 7(2)(i)

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

·    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

·    Section 48(1)(d)

     That the exclusion of the public from the whole or the relevant part of the proceedings of the meeting is necessary to enable the local authority to deliberate in private on its decision or recommendation in any proceedings to which this paragraph applies.

Section 48(2)

Paragraph (d) of subsection (1) applies to -

(a) Any proceedings before a local authority where -

(i) A right of appeal lies to any Court or tribunal against the final decision of  the local authority in those proceedings; or

(ii) The local authority is required, by any enactment, to make a recommendation in respect of the matter that is the subject of those proceedings; and

c) Any proceedings of a local authority in relation to any application or objection under the Marine Farming Act 1971.

2

Council Meeting - Confidential Minutes - 25 May 2023

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:

3

Mayor's Report - Taskforce Remuneration

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

4

City Club and Tasman Rugby Union - Approval for Ground Lease at Trafalgar Park Lane and Agreement to Lease Variation at Kinzett Terrace

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)(b)(ii)

     To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

·    Section 7(2)(i)

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

5

Stoke Rugby Football Club - Approval for Lease Term Variations

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

·    Section 7(2)(i)

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

6

Establishing a new contestable Climate Change Mitigation Fund

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)(h)

     To enable the local authority to carry out, without prejudice or disadvantage, commercial activities

7

Appointment of Chair to the Board of the Nelson Marina Management Council Controlled Organisation

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

8

Nelson Regional Development Agency - reappointment of Director

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

1

Mayor's Report - Taskforce Remuneration

2.     Agrees that the Report (R27740) remains confidential at this time.

2

City Club and Tasman Rugby Union - Approval for Ground Lease at Trafalgar Park Lane and Agreement to Lease Variation at Kinzett Terrace

6.     Agrees that Report (R27614) and its attachments (1655281707-22950 and 1655281707-22951) only be made publicly available following completion of negotiations and at that time still be subject to redaction of information that is required to be withheld under LGOIMA section 7(2)(b)(ii) – release would be likely to unreasonably prejudice the commercial position of a person who supplied or is the subject of the information.

3

Stoke Rugby Football Club - Approval for Lease Term Variations

3.     Agrees that the decision and the report Stoke Rugby - Request for new lease terms at the Pūtangitangi Greenmeadows Centre (R27663) be made public following the completion of negotiations; and

4.     Agrees that the attachment (1655281707-22926) remain confidential at this time.

4

Establishing a new contestable Climate Change Mitigation Fund

6.     Agrees that the decision only be made publicly available following establishment of the contestable Climate Change Mitigation Fund; and

7.     Agrees that Report (R27637) remain confidential at this time.

5

Appointment of Chair to the Board of the Nelson Marina Management Council Controlled Organisation

4.     Agrees that the Decision, Report (R27606), Attachment (1511110536-692) and the decision remain confidential at this time; and

5.     Agrees that the appointment be made public once it has been finalised.

6

Nelson Regional Development Agency - reappointment of Director

3.     Agrees that the decision only be made publicly available on the Nelson Regional Development Agency’s website (www.nelsontasman.nz) once the appointment has been announced.

Resolved CL/2023/132

That the Council

1.    Receives the report Adoption of Schedule of Fees and Charges 2023/24 (R27542) and its attachment (1598046314-107); and

2.    Notes that staff have incorporated in the Schedule of Fees and Charges 2023/24 the decisions made at the deliberations meeting on 25 May 2023 following public consultation between 29 March and 30 April 2023; and

3.    Adopts the Schedule of Fees and Charges 2023/24 (1598046314-107) that require Council approval; and

4.    Notes that staff will notify submitters of Council’s decisions on the Schedule of Fees and Charges 2023/24.

Courtney/Rainey                                                                           Carried

Resolved CL/2023/133

That the Council

1.   Receives the report Adoption of the Annual Plan 2023/24 and setting of the rates (R27507) and its attachment (839498445-14676); and

2.   Notes that staff have incorporated in the Annual Plan 2023/24 (839498445-14676) the decisions made at the deliberations meeting on 25 May 2023, which followed public consultation between 29 March and 30 April 2023; and

3.   Notes, in accordance with section 80 of the Local Government Act 2002, that:

a.    aspects of the work programme, rates increases, and debt projections in the Annual Plan 2023/24 are significantly inconsistent with the Long Term Plan 2021-2031 and the Financial Strategy; and

b.   the reasons for the inconsistency with Council’s Long Term Plan and Financial Strategy are largely due to costs of recovery from the August 2022 severe weather event, inflationary pressures, rising interest costs, bringing forward funding for projects to take advantage of available Government financial support, and decisions to respond to the changing needs of the Nelson community; and

c.    there is no intention to amend the Long Term Plan or Financial Strategy to accommodate the decisions at this time, as they will feed into the Long Term Plan 2024-2034 process that has already commenced; and

4.    Notes that, having had regard to the matters in section 100(2) of the Local Government Act 2002, and as approved in the Long Term Plan 2021-2031, the setting of an unbalanced budget in the Annual Plan 2023/24 remains prudent given the ongoing effects of the COVID-19 pandemic on the local economy and ratepayers and further notes that, more recently, Council budgets have been impacted by unforeseen additional costs associated with the August 2022 severe weather event and the sharp rise in inflation and interest costs; and

5.    Approves maintaining the commercial differential to collect 22.6% of total rates (excluding the water annual charge and water volumetric rate) for 2023/24; and

6.    Adopts the Annual Plan 2023/24 (839498445-14676) in accordance with section 95 of the Local Government Act 2002; and

7.    Delegates to the Mayor and Chief Executive to make any necessary minor editorial amendments prior to the public release of the Annual Plan 2023/24 ; and

8.    Notes that staff will notify submitters of Council’s decisions on the Annual Plan 2023/24; and

9.    Notes that Council must adopt the Funding Impact Statement for the 2023/24 financial year contained within the Annual Plan 2023/24, prior to setting the rates.

Courtney/Benge                                                                            Carried

Resolved CL/2023/134

That the Council

10.  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 2023 and ending on 30 June 2024.

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

Revenue approved:

General Rate                                $50,875,552

Uniform Annual General Charge   $6,991,104

Stormwater and Flood Protection Charge                                                           $10,583,927

Waste Water Charge                  $11,906,937

Water Annual Charge                  $4,335,443

Water Volumetric Charge          $10,116,034

Rates and Charges (excluding GST)                                                                    $94,808,997

Goods and Services Tax (at the current rate)                                                     $14,221,350

Total Rates and Charges            $109,030,347

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 0.37263 cents in the dollar of land value on every rating unit in the “residential – single unit” category.

·     a rate of 0.37263 cents in the dollar of land value on every rating unit in the “residential empty section” category.

·     a rate of 0.40989 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 0.40989 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 1.25407 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 236.5465% differential on land value.

·     a rate of 1.03368 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 177.4% differential on land value.

·     a rate of 0.81345 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 118.3% differential on land value.

·     a rate of 0.59285 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 59.1% differential on land value.

·     a rate of 1.79059 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 380.527% differential on land value.

·     a rate of 1.43612 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 285.4% differential on land value.

·     a rate of 1.08174 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 190.3% differential on land value.

·     a rate of 0.72700 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 95.1% differential on land value.

·     a rate of 1.51564 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 306.74% differential on land value.

·     a rate of 1.23005 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 230.1% differential on land value.

·     a rate of 0.94424 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 153.4% differential on land value.

·     a rate of 0.65844 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 76.7% differential on land value.

·     a rate of 0.24221 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 0.33537 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 $320.00 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 $557.35 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:

·     $619.31 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 $154.83 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 on each rating unit connect to the water supply, of:

Water charge (per connection)        $228.24

(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                                                                              $2.345 per m³

Usage from 10,001 – 100,000 cu.m/year                                                             $2.006 per m³

Usage over 100,000 cu.m/year                                                                             $1.583 per m³

Summer irrigation usage over 10,000 cu.m/year                                                    $2.175 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:

Rates instalments not paid on or by the Due 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:

Penalty on Rates

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

·     a charge of 10% of the amount of each rate instalment remaining unpaid 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 10% will be added on 10 July 2023 to any balance from a previous rating year (including penalties previously charged) remaining outstanding on 1 July 2023.

·     a further additional charge of 10% will be added on 11 January 2024 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 10 January 2024.

Penalty Remission

In accordance with 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.

O'Neill-Stevens/Hodgson                                                               Carried

Attachments

1    1118544611-7155 Ministerial response to Mayor Nick Smith

Resolved CL/2023/135

That the Council

1.    Receives the report Temporary exemption from payment for parking in the Inner City during winter months (R27760); and

2.  Notes the economic challenges facing city centre businesses and the community; and

3.   Establishes a City Centre Winter Activation Fund of $20,000 from existing city development operating budgets for 2023/24 to:

a)  Support events and projects that attract residents to the city centre over the winter months;

b) That events and projects supported by the fund are delivered by local community members or organisations; and

4.   Delegates disbursement of the City Centre Winter Activation Fund to staff in consultation with Uniquely Nelson and Chair of the City Centre Business Forum; and

5.    Approves that city centre parking be exempted from payment from 3.00p.m. to 5.00p.m. between 1 July and 31 October 2023 as a temporary measure to support city centre businesses; and

6.     Requests that consideration be given by the City Centre Business Forum and through the Long Term Plan to the development of a City Centre Retail Strategy.   

His Worship the Mayor/O'Neill-Stevens                                          Carried

As at March 2023

As at May 2023

Pre-Truss Damage Discovery

Including Truss Damage

Stage 1 - Pop Up Library

189,214

 189,214

Stage 2 - Rest of Library

1,400,000

 1,400,000

Stage 3 - Truss Damage Repairs

-  

 885,734

Stage 4 - Roof renewal and drainage

-  

 233,841

Total Stage 3 and 4 Costing

-

$1,119,575

Total Value for Construction (all stages)

$1,589,214

 $2,708,788

LTP Budget (carried forward to 22/23)

$200,000

 $200,000

Approved Expenditure Nov 2022

$1,400,000

 $1,400,000

Savings from ETL Capex Budgets allocated to project (21/22 and 22/23) includes furniture & fittings

$167,952

 $167,952

Total budget for Construction

 $1,767,952

 $1,767,952

BUDGET SURPLUS / (DEFICIT)

$178,738

($940,836)

Important considerations for decision making

Fit with Purpose of Local Government

The provision of library services is a core function of local government which supports the cultural and social wellbeing of the community.

Consistency with Community Outcomes and Council Policy

This report fits with the following Community Outcomes:

Our communities have opportunities to celebrate and explore their heritage, identity and creativity 

We are proud of and celebrate our history and heritage and how that contributes to our identity.  We have a strong sense of community, enhanced by the wide range of arts, cultural and sporting opportunities on offer. 

Our communities have access to a range of social, educational and recreational facilities and activities 

Nelson has developed high quality sports and recreation facilities for all ages. There are educational and leisure opportunities for the whole community to enjoy. We protect, enhance and celebrate Nelson’s human heritage and historic sites.   

Risk

Council faces reputational risk from long term closure of the City’s largest library facility.

Financial impact

The shortfall for the recommended works is unbudgeted and will require a decision from Council to fund. The shortfall will be funded through borrowings at an approximate interest cost of $37,600 per annum.

Degree of significance and level of engagement

This matter is of low significance and no engagement has been undertaken. The extended pop-up library is providing a library service to the community but not to the extent that the community is accustomed to or expects. No engagement will be required, however the public and stakeholders will be kept informed about the progress of this project through the Council’s communication channels, including Our Nelson, social media and regular media releases.

Climate Impact

There is no direct climate impact from the matters in this report.

Inclusion of Māori in the decision making process

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

Delegations

        This is a matter for full Council.

Important considerations for decision making

Fit with Purpose of Local Government

If the recommendation is approved, it will provide a consistent set of forecasting assumptions for use in the development of Council’s Long Term Plan 2024-2034 to inform the planning and budgeting. The assumptions provide Council with the information needed to make decisions which affect the social, economic, environmental and cultural wellbeing of the Nelson community.

Consistency with Community Outcomes and Council Policy

Adopting the Draft Significant Forecasting Assumptions for the Long Term Plan 2024-2034 supports the community outcome:

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

Risk

The assumptions contain the best data available at the time and provide estimates for a range of factors. Risks and uncertainty associated with each of the estimates and methods to mitigate, if applicable, are noted in the attachment.

Financial impact

There are no direct financial costs associated with the decision to approve the draft assumptions.

Degree of significance and level of engagement

This matter is of medium significance because assumptions underpin the decisions that will have an impact on the services and activities Council provides, and therefore on Council’s finances, debt, and rates. The community will have an opportunity to provide feedback on the assumptions as supporting information released alongside the Long Term Plan 2024-2034 Consultation Document.

Climate Impact

Projected impacts of climate change are included in the assumptions.

Inclusion of Māori in the decision making process

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

Delegations

This is a matter for Council.

Important considerations for decision making

Fit with Purpose of Local Government

The response and recovery works following the August 2022 extreme weather event and the May 2023 weather event fits the purpose of local Government by supporting the social, economic and environmental well-being of residents impacted by the event.

Consistency with Community Outcomes and Council Policy

The works in this report cover all the following Community Outcomes - “Our infrastructure is efficient, cost effective and meets current and future needs”; and “Our communities are healthy, safe, inclusive and resilient”; and “Our region is supported by an innovative and sustainable economy”.

Risk

The response and recovery effort following the August 2022 extreme weather event has reduced the risk to life and property but does pose ongoing reputational risk and risk of legal claim relating to complex issues involving Council property.

Financial impact

This report deals with costs incurred in responding to the August 2022 extreme weather event and the May 2023 weather event. Retrospective approval is required for estimated costs since December 2022 to end of June 2023 for the August event and estimated costs for the May 2023 event.

Degree of significance and level of engagement

The matters in this report are of medium significance as while the costs are significant there is an existing Council resolution approving the approach in this report. Ongoing recovery costs have been consulted on and included in the 2023/24 Annual Plan.

Climate Impact

The recovery will consider the appropriateness of reinstating our assets to a standard to deal with future events expected as a result of climate change.

Inclusion of Māori in the decision making process

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

Delegations

Matters in this report are for Council to consider.

Important considerations for decision making

Fit with Purpose of Local Government

The decision supports the planning process requirements (under the Resource Management Act 1991) associated with Nelson Airport Limited’s plans for future growth to provide for our region.

Consistency with Community Outcomes and Council Policy

Appointing Commissioners to hear the Private Plan Change 30 and Notice of Requirement submitters and to make recommendations is consistent with community outcomes particularly:

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

·    Our region is supported by an innovative and sustainable economy

Risk

Given Council is a 50% shareholder of Nelson Airport Limited there is some risk in its involvement in the decision making of this Private Plan Change. The risk is sufficiently mitigated by the recommendation to appoint independent Commissioners and by Council not making a submission on the proposal.

Financial impact

Nelson Airport Limited meet the costs of the Private Plan Change and Notice of Requirement Processes. No additional funding is sought as a consequence of this decision.

Degree of significance and level of engagement

This matter is of low significance because the recommendation to appoint independent Commissioners means the final decision by Council to accept or not accept the recommendations of the Commissioners is wholly based on independent expert advice. The delegation of these powers is provided for under legislation.

Climate Impact

The decision to appoint Commissioners has no impact on climate change.

Inclusion of Māori in the decision making process

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

Delegations

Officers have delegated authority to appoint independent Commissioner(s) when an application is one which the Council is, or perceived to be, an interested party (RMA6). This matter has been brought to Council for a decision to confirm how it can be appropriately involved in the Private Plan Change and Notice of Requirement processes.