Agenda of Council - Thursday, 26 October 2023

Item 5: Annual Report 2022/23

Council

26 October 2023

Report Title: Annual Report 2022/23

Report Author: Nicky McDonald - Group Manager Strategy and Communications

Report Number: R27942

1. Purpose of Report

1.1 To adopt the Annual Report for the year ending 30 June 2023 in accordance with section 98 of the Local Government Act 2002.

2. Summary

2.1 The Local Government Act requires Council to adopt the final Annual Report within four months after the end of the financial year (i.e. by 31 October).

2.2 Audit New Zealand commenced auditing the draft Annual Report 2022/23 in September 2023, and audit work will be complete by the date of this meeting. Any final amendments to the draft Annual Report (Attachment 839498445-17804) will be tabled at the meeting, along with the Audit report. No significant issues have been identified during the audit.

2.3 The Annual Report 2022/23 presents the financial performance of the Council over the previous year. Council recorded an accounting deficit before the revaluations for the year ended 30 June 2023 of $14.6 million which was $21.5 million less than budget. Net weather-related expenses amounted to $14.5 million which is the majority of the variance to budget. Borrowings net of cash and LGFA borrower notes were $168.8 million, compared to a budget of $161.0 million.

3. Recommendation

That the Council

1. Receives the report Annual Report 2022/23 (R27942) and its attachment (839498445-17804); and

2. Adopts the Annual Report for the year ended 30 June 2023 in accordance with S98 of the Local Government Act 2002 contained in Attachment 1 (839498445-17804); and

3. Receives the Audit New Zealand Opinion as tabled at the meeting; and

4. Delegates the His Worship the Mayor and Chief Executive authority to approve minor editorial changes to the Annual Report 2022/23 as necessary.

4. Background

4.1 The purpose of the Annual Report is to compare the actual activities and performance of Council with those set out in the Annual Plan 2022/23. It is also a means to enable accountability to the community for the decisions Council has made throughout the year.

4.2 Progress was made across a range of projects in line with Council’s Long Term Plan 2021-31, however the recovery from the August 2022 severe weather event impacted all activities across Council. Council achieved 77.6% of its performance measures in 2022/23 which is a decrease from the 2021/22 result of 83%. This decrease can also be partly explained by the introduction of a new accounting standard, which has changed the way we report on performance measures.

4.3 An initial draft of the Annual Report 2022/23 was presented to the Audit, Risk and Finance Committee on 15 September 2023 for information and to provide an opportunity for any feedback. The committee passed the following resolution:

Resolved ARF/2023/010

That the Audit, Risk and Finance Committee

3. Confirms to Council that the Audit, Risk and Finance Committee has reviewed the Draft Annual Report 2022/23 (839498445-17289) and the audit process and is satisfied that the Annual Report is on track for Council adoption prior to 31 October 2023.

4.4 The Annual Report includes both the parent (Nelson City Council) and the Nelson City Council Group – which consists of Nelson City Council, its subsidiaries (Nelmac Limited, Nelson Civic Trust, Bishop Suter Trust, Nelson Regional Development Agency) and its associates and joint ventures.

4.5 As Council does not have a controlling interest in its associates (Nelson Airport Limited, Tasman Bays Heritage Trust and Port Nelson Limited) these are equity accounted. Nelson Regional Sewerage Business Unit, Nelson Tasman Regional Landfill Business Unit, and the Nelson Tasman Combined Civil Defence Organisation are proportionately consolidated as these are not separate legal entities. Further detail of the accounting treatment is included in Note 1 to the accounts.

5. Discussion

Highlights for 2022/23

5.1 New Public Transport System

2023 saw the launch of 17 new electric buses to service the wider Nelson-Tasman region, with work to enable this project being completed throughout 2022/23. This service will provide more buses, more often, with a route now servicing the Nelson Airport. The electric buses are quiet and clean and will contribute to Nelson-Tasman reducing greenhouse gases associated with transport.

5.2 Saxton Creek Upgrade

The Saxton Creek upgrade project looks to improve how and where water flows during a major weather event. The project is planned over four phases with stage four progressing through 2022/23. The upgrade will mean that that the area will be able to cater for a 1 in 100-year flood. This work has received $7.5 million funding from Kānoa – Regional Economic Development and Investment Unit, which has allowed Council to bring the project forward, creating new jobs in the area.

5.3 Project Mahitahi

Led by Council, Project Mahitahi is a multi-partnership, long-term project to restore the Mahitahi River’s terrestrial ecosystems. This project has received funding from the Department of Conservation (DOC) and Ministry for the Environment Jobs for Nature programs, allowing the project to continue through to June 2025. This project has employed over 60 people during the two-year period of DOC funding, resulting in over 100,000 native trees being planted, and strengthened relationships between all those involved in the project.

5.4 Bridge Street Linear Park

Council entered into a funding agreement with the Government in September 2022 after being successful with the 2021/22 application to the Infrastructure Acceleration Fund to enable the Bridge Street Linear Park project (Rutherford Street to Collingwood Street) to proceed. This project will transform Bridge Street into an active transport corridor and linear park, offering a high amenity street scape to enable city centre revitalisation outcomes. The funding includes the associated underground infrastructure, a flood gate and increased capacity of the Paru Paru Road wastewater treatment pump station.

5.5 Te Ramaroa

The city was lit up with the lights of Te Ramaroa festival in June and July 2023. The free community event brought together a collection of light installations spread throughout the city, created by a diverse range of local and national artists. The event provided a boost to the local economy, generating high numbers of visitors.

5.6 Te Pā Harakeke

In November 2023 Te Pā Harakeke was officially opened, welcoming Nelsonians to a new play area situated over the disestablished modeller’s pond. This allowed for the remediation of contaminated land and accommodated a stormwater discharge system which is built to adjust to waters of the king tide. The Nelson Society of Modellers railway track remains in place for people to enjoy, and the park won the healthy park of the year award at the Recreation Aotearoa Conference in 2023.

Non-financial performance

5.7 Council measures its non-financial success against performance measures that are set through the LTP. The LTP established 67 performance measures across Council’s eleven activity areas. The measures are recorded as ‘achieved’, ‘not achieved’, or ‘not measured’ (where insufficient data is available to determine a result) at the end of the year.

5.8 Council achieved 52 (77.6%) of its non-financial performance measures in 2022/23. In 2021/22 Council achieved 55 (83%) of its non-financial performance measures. Commentary on all measures is provided in the activity sections of Attachment 1.

Surplus/Deficit

5.9 The Annual Report shows that Council recorded a net deficit before revaluations for the year ended 30 June 2023 of $14.6 million which was $21.5 million less than budget. Net weather-related expenses amounted to $14.5 million (including abandoned assets), which is the majority of the $21.5 m variance to budget. In the 2021/22 financial year, this was a surplus of $23.5 million. More detail for the variance is explained in the Annual Report Note 40, however the reasons for this variance are mainly due to:

5.10 Fees and charges are $6.3 million lower than budget, which is mainly due to the following:

5.10.1 TDC recovery income is nil against a budget of $2.8 million due to a reclassification to other revenue for external reporting purposes (section 5.14).

5.10.2 Harvesting income is lower than budget by $3.0 million as a result of the changes to the planned timing of harvesting as well accounting adjustments for external reporting, where only the movement in forestry fair value is considered as income for external reporting purposes.

5.11 Subsidies and grants are $6.9 million higher than budget mainly due to the following:

5.11.1 Waka Kotahi income is $3.4 million greater than budget. $3.9 million of this relates to flood recovery, $1.2 million relates to public transport, and $0.5 million relates to other transport cost recoveries. This is offset by a reduction of $2.3 million in grants for capital expenditure due to delays in the capital expenditure programme due to the August 2022 weather event.

5.11.2 There is $3.1 million of accrued income for the NEMA claim for the August 2022 weather event.

5.11.3 This is offset by a reduction of $0.8 million in Waste Minimalisation income, due to the kitchen waste service commencing later than anticipated (refer 5.19).

5.12 Finance income is $0.9 million greater than budgeted. This is due to interest on short-term investments (i.e. pre-funding of debt).

5.13 Development/financial contributions are $2.7 million greater than budget due to more development activity in the community than budgeted.

5.14 Other revenue is $9.7 million greater than budget due to the following reasons:

5.14.1 Vested asset income was $5.5 million more than budgeted.

5.14.2 Dividend/subvention income was $0.8 million less than budgeted.

5.14.3 $1.8 million of accrue insurance recoveries on the August 2022 weather event.

5.14.4 $2.8 million reclassification from Fees and Charges above (section 5.10).

5.15 Other gains/losses are less than budget by $3.6 million due to the following:

5.15.1 $2.4 million of abandoned assets as a result of the August 2022 weather event (across roading, water supply, wastewater and storm water).

5.15.2 $2.2 million difference is due to a loss in the forestry activity of $0.7 million as a result of the revaluation of forestry asset and an accounting adjustment at the year end.

5.15.3 This is partially offset by a higher than planned gain of $1.0 million on the revaluation of swaps – due to interest rate rises.

5.16 Personnel costs were $1.7 million higher than budgeted, which is mainly due to higher (5%) than budgeted (3%) average salary increase (Costs additional 0.9m), less capitalized wages than budgeted (by $0.9m) as the recovery programme being operating expenditure rather than capital expenditure and higher Contractor/Temp and Training Staff costs.

5.17 Depreciation and amortisation expense was $4.9 million greater than budgeted. In the 2021/22 financials, the asset valuations saw significant increases. This resulted in a much higher depreciation expense than budgeted for. This was especially evident in Roads, Wastewater, Stormwater, and Water Supply.

5.18 Finance costs are greater than budget by $2.0 million. $0.9 million is due to an increase in interest from additional pre-funding of debt (see 5.12). The remaining $1.1 million is due to both interest rate increases and higher borrowings due to the weather event.

5.19 Other expenses were $23.4 million greater than budget mainly due to $21.2 million spent on the August 2022 weather event. Other major variances include:

5.19.1 $1.0 million increase in transport-related expenditure (offset by Waka Kotahi grants in 5.11 above).

5.19.2 $0.5 million decrease in kerbside kitchen waste service due to the delayed deployment of this initiative (see 5.11 above).

5.19.3 $0.5 million increase in green waste and recycling levies.

5.19.4 $2.5 million decrease in forestry expenses compared to the budget due to an accounting adjustment to move net profit to other gains/losses.

5.19.5 A $3.45 million accrual has been added for the Tahunanui Beach sawdust remediation. This is made up of $0.45m for short-term solution, and the $3.0m for long-term solution. These figures were based on estimations provided by staff in the report to Council on 10 August 2023. As the condition at Tahunanui Beach existed at balance date, accounting standards requires that the Council provides for this.

All other increases/decreases in operating expenditure are less than $0.5 million.

5.20 The final Land and Infrastructure Revaluations was $165.3 million; $134.7 million over budget:

5.20.1 Infrastructure assets are revalued every year to smooth out the large fluctuations and accounted for all of the overall revaluation. This is against a budget of $30.6 million.

5.20.2 Land is revalued every five years or when its fair value diverges materially from its carrying value. Land was not revalued in 2022/23 due to movements not being material from the 2021/22 financial year, when it was last revalued.

External Debt

5.21 At 30 June 2023 Council’s borrowings, net of deposits, cash and LGFA borrower notes were $168.8 million compared to a budget of $161.0 million. This variance of $7.8 million is mainly due to:

5.21.1 The additional weather-related expenditure of $21.2 million.

5.21.2 This was offset by a reduction in the Capital Expenditure not reaching the full programme and ending less than budgeted by $7.1 million against Annual Plan budget of $72.9 million (excluding vested assets and joint operations but including capital staff time and weather-related capital expenditure). Detail relating to variances in the Capital Programme can be seen in the section of “Summary of Capital Expenditure over $100,000”.

5.21.3 This was offset by additional weather-related revenue received of $4.3 million.

Rating Surplus/(Deficit)

5.22 The rates deficit was $2.2 million and has increased the balance of the Emergency Response Fund.

Financial prudence results

5.23 Council is required to include information on financial performance in relation to various benchmarks in the Annual Report.

5.24 A summary of this information in the Annual Report is included in the following table:

Measure	Result	Benchmark
Rates (increases) affordability	5.4%	<5.4%	Achieved
Balanced Budget (revenue:expenditure)	84%	>100%	Not achieved
Debt affordability (% of revenue)	115%	<150%	Achieved
Essential services (capital expenditure:depreciation)	174%	>100%	Achieved
Debt Servicing (interest:revenue)	4.77%	<10%	Achieved
Debt Control (actual:budget)	111%	<100%	Not achieved
Operational Control (actual:budget net cashflow from operations)	77%	>100%	Not achieved

5.25 The following benchmarks were not achieved:

5.25.1 Balanced budget was not achieved due to the spend on the August 2022 weather event.

5.25.2 Debt control was not achieved due to the unbudgeted borrowings in 2022/23 due to the spend on the August 2022 weather event.

5.25.3 Operational control was not met due to the unbudgeted spend on the August 2022 weather event.

Material differences from the draft Annual Report presented to the Audit, Risk and Finance Committee

5.26 The draft Annual Report went to the Audit, Risk and Finance Committee on 15 September 2023. Since that time, the audit has been undertaken.

5.27 The table below shows the difference between the two versions of the Annual Report presented to the Audit, Risk and Finance Committee.

		Council
		Final	Draft	Variance
$NZ000’s	Notes	2023	2023	2023
Rates	3	78,235	78,235	-
Fees and charges		35,379	35,388	(9)
Subsidies and grants	4	22,447	23,814	(1,367)
Finance revenue	9	872	872	-
Development/financial contributions	5	6,384	6,384	-
Other revenue	5	21,034	21,933	(799)
Other gains/(losses)	6	(2,586)	(5,014)	2,428
Total revenue		164,351	161,612	2,739
Personnel costs	8	(30,337)	(30,337)	-
Depreciation and amortisation expense	19,20	(38,354)	(38,354)	-
Finance costs	9	(7,026)	(6,996)	(30)
Other expenses	7	(100,689)	(97,343)	3,346
Total operating expenditure		(176,406)	(173,030)	3,376
Share of joint operation's surplus	25	-	-	-
Surplus before tax		(14,641)	(11,418)	3,223
Income tax expense	10	-	-	-
Surplus after tax		(14,641)	(11,418)	3,223
Other comprehensive revenue
Land and Infrastructure revaluations	31	165,272	253,214	(87,942)
Share of subsidiaries revaluations		-	-	-
Total other comprehensive revenue		165,272	253,214	(87,942)
Total comprehensive revenue		150,631	241,796	(91,165)

5.28 Subsidies and grants have reduced by $1.4 million due to a reduction in the NEMA accrual for the initial claim, which has now been finalised.

5.29 Other revenue has reduced by $0.8 million, which is mainly due to a $0.8 million reduction in vested assets due to changes in the valuation of these assets.

5.30 Other gains/(losses) have reduced by $2.4 million which is mainly due to a reclassification of abandoned assets to revaluation expense.

5.31 Other expenses have increased by $3.4 million which is mainly due to an accrual of $3.5 million for the Tahunanui Sawdust remediation.

5.32 Land and Infrastructure revaluations reported to Audit, Risk and Finance Committee (ARF) on 15 September was $253.2 million whereas it is $165.2 million in the final Annual Report. This difference is due to the final valuation not being available at the time the draft Annual Report was provided to the Committee.

5.33 There have been no other material changes to the draft Annual Report presented to ARF. There have, however, been some minor changes to the results in the statement of comprehensive revenue and expense and in the statement of financial position (and associated notes).

6. Options

6.1 Option 1 is the recommended option.

Option 1: Adopts the Annual Report 2022/23
Advantages	· Meets statutory timeframes. · Allows timely production and distribution of the Annual Report
Risks and Disadvantages	· No further opportunity for Council to review minor amendments prior to publishing.
Option 2: Not adopt the Annual Report 2022/23
Advantages	· None identified
Risks and Disadvantages	· Adoption of the Annual Report will not meet statutory timeframes. · Not meeting statutory timeframes may be a consideration by Standard and Poor’s for the Council credit rating. · The Annual Report will not be available to the public in a timely manner.

7. Conclusion

7.1 It is recommended that Council adopts the Annual Report for the 2022/23 year.

8. Next Steps

8.1 Following adoption by Council the Annual Report 2022/23 will be made available online, and printed copies provided for reference at Council’s public libraries and the Customer Service Centre. An article on the Annual Report will be included in an upcoming edition of Our Nelson.

8.2 Council is required to make publicly available a summary of the information contained in the Annual Report within one month of its adoption. An audited Summary Annual Report 2022/23 will be made available online, as well as at Council’s public libraries and the Customer Service Centre.

Attachments

Attachment 1: 839498445-17804 - Draft Annual Report 2022 2023 - 19Oct2023 ⇩

Important considerations for decision making

Fit with Purpose of Local Government

The Annual Report 2022/23 is a requirement of the Local Government Act 2002 and fits the purpose of local government by providing information about Council’s performance during the year – this contributes to democratic local decision-making on behalf of the community.

Consistency with Community Outcomes and Council Policy

The decision to adopt the Annual Report aligns with the following community outcome:

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

Risk

The content of the Annual Report is prescribed by statute so there is a very low risk that it will not achieve the required outcome.

The Local Government Act 2002 requires Council to adopt the final Annual Report within four months of the end of the financial year (31 October). If Council does not adopt the Annual Report at this meeting, there is a risk of not meeting the statutory timeframe.

Financial impact

There is no immediate financial impact from this decision - preparation and publication of the Annual Report can be achieved within existing budgets. The Annual Report itself outlines the financial position of Council at the end of the 2022/23 financial year.

Degree of significance and level of engagement

This decision is of low significance and does not require engagement.

Climate Impact

The Annual Report (Attachment 1) contains a summary of Council’s climate change actions in 2022/23, promoting awareness of Council’s work in this area.

Inclusion of Māori in the decision making process

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

Legal context

Council has power to make this decision under section 98 of the Local Government Act 2002. Part 3 of Schedule 10 of the Act outlines the information which must be included in the Annual Report. Staff have ensured that the document complies with these requirements.

Delegations

The adoption of the Annual Report is a decision that can only be made by the Council.

Item 6: Draft Arts, Heritage and Events Activity Management Plan 2024-2034

Council

26 October 2023

Report Title: Draft Arts, Heritage and Events Activity Management Plan 2024-2034

Report Author: Mark Preston-Thomas - Manager Community Partnerships

Report Authoriser: Andrew White - Group Manager Community Services

Report Number: R27926

1. Purpose of Report

To recommend that Council adopts the Draft Arts, Heritage and Events Activity Management Plan 2024-2034, as the version to inform the Long Term Plan 2024-2034.

2. Recommendation

That the Council

1. Receives the report Draft Arts, Heritage and Events Activity Management Plan 2024-2034 (R27926) and its attachment (636019211-1682); and

2. Approves the Draft Arts, Heritage and Events Activity Management Plan 2024-2034 (636019211-1682) as the version to inform the development of the Long Term Plan 2024-2034; and

3. Notes that the financial tables in the Draft Arts, Heritage and Events Activity Management Plan 2024-2034 (636019211-1682) are subject to change as draft budgets are developed; and

4. Notes that the Draft Arts, Heritage and Events Activity Management Plan 2024-2034 (636019211-1682) will be updated and the final Activity Management Plan will be approved by Council after the adoption of the Long Term Plan 2024-2034.

3. Background

3.1 Draft Activity Management Plans (AMPs) are prepared for the approval of Council to inform development of the Long Term Plan (LTP). This draft AMP will inform the development of the 2024-2034 LTP.

3.2 Following consultation and adoption of the LTP, the draft AMPs will be updated to align with the adopted LTP. The final updated AMPs will then be brought back to Council after the 2024-2034 LTP has been adopted.

3.3 The draft AMP takes account of previous Council resolutions and feedback at workshops affecting the proposed work programme and budgets. A workshop was held with Council on August 2023 to discuss the draft AMP.

3.4 Officers have also undertaken a high-level review of budgets across all Council activities.

4. Discussion

4.1 The Draft AMP sets out the background to Council’s Arts, Heritage and Events activities and includes details of the following:

· Proposed arts, heritage and event priorities for 2024 to 2034.

· Proposed future levels of service.

· The proposed activity budgets for activities.

4.2 Iwi provided feedback on proposed Arts and Heritage activities primarily as part of the engagement for He Tātai Whetū (Arts Strategy) and Taonga Tuku Iho (Heritage Strategy), and through the quarterly Te Ohu Toi Ahurea (Arts and Heritage) forum.

4.3 The management of the heritage capital assets such as buildings is covered in the draft Properties Asset Management Plan which will be considered by Council via a separate report.

Key Issues and Priorities

4.4 A workshop was held with Council on 11 August 2023 to inform this draft Arts, Heritage and Events AMP. Feedback received from Elected Members at this workshop included:

· Discussion of the implementation of the He Tātai Whetū Arts and Creativity Strategy, and an action plan for the Taonga Tuku Iho Heritage Strategy.

· The importance of hosting of Te Matatini.

· A need to engage the community on issues such as NCMA’s proposed debt remission.

· Events are an essential part of community wellbeing, and that Council should continue to support a diverse events calendar.

· Volunteers are critical to maintain levels of services at heritage facilities.

4.5 Iwi engagement to inform the AMP occurred through the Te Ohu Toi Ahurea (arts, heritage, and events forum) with iwi cultural managers. The following are key themes from iwi engagement:

· A request to rename Founders Heritage Park.

· The importance of Te Matatini.

· Māori representation in Arts and Heritage needs to be rebalanced.

4.6 Due to economic constraints, Council’s available budget is restricted. This has resulted in taking the following approach for the Draft AMP:

· Implementation of the He Tatai Whetu (Arts) and Taonga Tuku Iho (Heritage) strategies will be phased over an extended time period.

· Essential customer service functions at heritage facilities will be prioritised (for example by increasing volunteer capacity) over longer term projects such as upgrading venues.

· Delivering new events will need to be offset by no longer delivering some legacy events.

4.7 Changes to Levels Of Service (LOS) are proposed in this AMP compared to the previous AMP. The previous 2021-31 AMP had 38 levels of service to capture the breadth and depth of work across the portfolios, and to capture the activity of selected external organisations. Previous LOS included;

· Public art.

· Community Arts and Arts Services – including Arts Council and Creative Communities.

· Arts Facilities and Venues – including Suter, Theatre Royal and NCMA.

· Heritage Facilities – including museum, iwi māori partnerships, collections, Founders Heritage Park, Tuku Heritage Festival, Heritage Information Panels, Heritage Project Fund and Heritage Rates Remissions.

· Events – including Nelson Arts Festival, Community Events, Te Matatini, Council requested events and Facilities Marketing.

4.8 To simplify reporting and provide indicators to align with the principles of He Tatai Whetu (Arts) and Taonga Tuku Iho (Heritage) strategies, this AMP has three proposed LOS covering;

· Events: Provision of at least 12 accessible events that achieve high community satisfaction.

· Heritage Activities: Heritage facilities receive high levels of visitors, and the annual Tuku festival attracts widespread community participation.

· Arts Activities: One public artwork is installed every three years.

Options

4.9 The preferred option is for Council to adopt the Draft Arts, Heritage, and Events Activity Management Plan 2024-2034 as the version to inform the Draft LTP 2024-2034.

Option 1: Approve the Draft Arts, Heritage and Events AMP 2024 – 2034
Advantages	· Will continue to meet requirements of the Local Government Act 2002 · Aligns with timeframes to meet AMP and LTP deadline obligations
Risks and Disadvantages	· Nil – there will be a further opportunity for Council to consider the content of the draft AMP following adoption of the 2024-34 LTP
Option 2: Accept the Draft Arts, Heritage and Events AMP 2024 – 2034, with changes
Advantages	· Will continue the process to meet requirements of the Local Government Act 2002 · Will allow for further elected member considerations to be included at an early stage of the process
Risks and Disadvantages	· May delay timeframes to meet AMP and LTP deadline obligations if significant changes are requested
Option 3: Do not accept the Draft Arts, Heritage and Events AMP 2024 – 2034
Advantages	· Nil
Risks and Disadvantages	· May fail to meet requirements of Local Government Act 2002 · May delay timeframes to meet AMP and LTP deadline obligations if significant changes are requested

5. Conclusion

5.1 The Draft Arts, Heritage and Events Activity Management Plan 2023-2034 has been prepared to inform the 2024-2034 LTP and will support Council in meeting its obligations under section 93 and Schedule 10 of the Local Government Act 2002.

Attachments

Attachment 1: 636019211-1682 - Draft Arts, Heritage and Events Activity Management Plan 2024-2034 (Circulated separately) ⇨

Important considerations for decision making

Fit with Purpose of Local Government

The development of an Arts, Heritage, and Events AMP for Whakatū Nelson fits with the purpose of Local Government as it will deliver outcomes to our local area and contribute to the social and cultural wellbeing of our community.

Consistency with Community Outcomes and Council Policy

This draft AMP supports Council’s Community Outcomes being to;

· Support our communities to be prosperous, connected, and inclusive

· Transform our city and commercial centres to be thriving, accessible and people-focused

· Foster a healthy environment and a climate resilient, low-emissions community

Risk

There is a moderate risk that Council’s reputation may be damaged by delaying implementation of the He Tātai Whetū Arts and Creativity Strategy 2022-2032 and Taonga Tuku Iho Heritage Strategy 2022–2032.

Significant risks are identified and documented in the AMP.

Financial impact

There are no direct funding implications from the recommendation. The draft AMP guides the funding in the draft LTP and will be subject to further discussion with Council and a consultation process with the community.

Degree of significance and level of engagement

This matter is of high significance because the adoption of an LTP is a statutory requirement under the Local Government Act 2002. Therefore, consultation with the community will occur in the form of publicly advertising the Draft LTP and calling for submissions.

Climate Impact

The draft AMP considers potential impacts and risks of climate change regarding Arts, Heritage and Events activities.

Inclusion of Māori in the decision making process

Iwi feedback was obtained during the development of the He Tātai Whetū and Taonga Tuku Iho strategies that inform much of the AMP activity. Iwi feedback has been received through the Te Ohu Toi Ahurea / iwi cultural managers and council forum.

Legal context

This report allows Council to meet the requirements of the Local Government Act regarding the progress of the 2024-34 Long Term Plan.

Delegations

This is a matter for Council to approve.

Item	General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Particular interests protected (where applicable)