Item 6: Adoption of the
Long Term Plan 2024-2034 Consultation Document
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Council
22 March 2024
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Report
Title: Adoption
of the Long Term Plan 2024-2034 Consultation Document
Report
Author: Louis Dalzell - Senior
Policy Adviser
Report
Authoriser: Nicky McDonald - Group Manager Strategy and
Communications
Report
Number: R28102
1. Purpose
of Report
1.1 To adopt the
Consultation Document and supporting information for the Long Term Plan 2024-2034
and to approve the consultation process, including for related consultations.
2. Summary
2.1 Council is required at
all times to have a Long Term Plan. It is reviewed in three yearly cycles. A
new Long Term Plan for the period 2024-2034 must be prepared and adopted by 30
June.
2.2 Council must consult
with the community on its proposed Long Term Plan, and as part of that process
is required to prepare a Consultation Document. The Consultation Document has
been reviewed by Audit NZ and is attached for adoption (1852948764-360: Attachment
1). Council is also required to make available to the public supporting
information that was used to inform development of the Consultation Document.
Some of the supporting information has already been adopted, with the remaining
documents attached (Attachments 3- 9).
3. Recommendation
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That the Council
1. Receives the report Adoption
of the Long Term Plan 2024-2034 Consultation Document (R28102) and its
attachments (1852948764-360, 1852948764-634, 1530519604-11301, 1852948764-480,
1852948764-675, 332184083-5274, 1852948764-535, 336940202-11140, 336940202-11141,
2010958706-10042, 1852948764-352, 1852948764-434, 1852948764-423, 1852948764-424);
and
2. Approves for consultation an
amended Storm Recovery Charge rating proposal set on a uniform basis of $300
(including GST) per separately used or inhabited part of a rating unit for
the ten year period 2024/25 to 2033/34; and
3. Approves reallocating $50,000
of Better Off Funding from promoting a community car sharing scheme to the
project to transition Arts Council Nelson to an Arts Development Agency; and
4. Adopts the following
documents as supporting information for Nelson’s Long Term Plan
2024-2034 Consultation Document as required by section 93G of the Local
Government Act 2002:
a. Draft Infrastructure Strategy
2024-2054 (1530519604-11301: Attachment 3)
b. Draft Financial Strategy
(1852948764-480: Attachment 4)
c. Draft Significant Forecasting
Assumptions (1852948764-675: Attachment 5)
d. Draft Supporting Financial
Information for the Long Term Plan 2024-34 Consultation Document
(332184083-5274: Attachment 6)
e. Draft Council Activity summaries
(1852948764-535: Attachment 7)
f. Draft
Nelson City Housing and Business Capacity Assessment (336940202-11140:
Attachment 8)
g. Draft Nelson and Tasman Tier 2 Urban
Environment Housing and Business Assessment (336940202-11141: Attachment 9);
and
5. Approves the amended draft
Eligibility Buy-out Principles (2010958706-10042: Attachment 10) for
consultation as part of the 'Buy-out of private properties affected by slips'
Long Term Plan 2024-2034 Consultation Document key issue; and
6. Agrees that having considered
Council’s Significance and Engagement Policy and the importance of
other matters to the district and its communities, that the key issues facing
Council and the district are described in the Consultation Document; and
7. Agrees that the Long Term
Plan 2024-2034 Consultation Document (1852948764-360: Attachment 1) provides
a fair representation of the matters that are proposed in the Long Term Plan
and is an effective basis for public consultation as required by section 93B
of the Local Government Act; and
8. Receives the Audit Opinion
from Audit New Zealand for inclusion in the Consultation Document; and
9. Adopts the Long Term Plan
2024-2034 Consultation Document (1852948764-360: Attachment 1) for public
consultation in accordance with the relevant sections 93 - 93F of the Local
Government Act 2002; and
10. Agrees that the consultation approach (set
out in paragraphs 5.19 to 5.23 of this report R28102):
a. includes sufficient steps to
ensure the following documents will be reasonably accessible to the public
and will be publicised in a manner appropriate to their purpose and
significance:
i. Long Term Plan Consultation
Document 2024-2034
ii. supporting information
iii. the consultation information that will
be consulted on in parallel with the Consultation Document; and
b. will result in the Long Term Plan
Consultation Document 2024-2034, supporting information, and the consultation
information that will be consulted on in parallel with the Consultation
Document, being as widely publicised as is reasonably practicable as a basis
for consultation
c. meets the requirements of
section 82 and 83 of the Local Government Act 2002; and
11. Approves the amended draft Revenue and
Financing Policy (1852948764-352: Attachment 11) for public
consultation in accordance with sections 102, 103, 82 and 82A of the Local
Government Act 2002; and
12. Approves the following consultation
information in accordance with sections 82 and 82A of the Local Government Act 2002:
a. Consultation information on
the draft Revenue and Financing Policy (1852948764-434: Attachment 12)
b. Consultation information on the
draft Rating Policies (1852948764-423: Attachment 13)
c. Consultation information on
the draft Significance and Engagement Policy (1852948764-424: Attachment 14);
and
13. Agrees His Worship Mayor Hon Dr Smith
and the Chief Executive be delegated authority to approve any minor
amendments required to documents prior to them being made available for
public consultation.
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4. Background
4.1 Every three years
Council is required, under section 93 of the Local Government Act 2002
(LGA2002), to prepare and adopt a Long Term Plan. The Long Term Plan contains
Council’s 10 year work programme including all the services and
activities it plans to deliver and their estimated costs. Council is required
to consult with the community on its Long Term Plan, and prepare a Consultation
Document for that purpose.
4.2 The Consultation
Document must “provide an effective basis for public participation in
local authority decision-making processes relating to the content of a Long
Term Plan”. It needs to explain the key issues being consulted on (based
on their significance), provide options for consideration and give information
on how Council proposals will impact on rates, debt and levels of service. It
must also include reference to Council’s Financial Strategy and
Infrastructure Strategy, changes to funding arrangements, changes to levels of
service and changes to rates and debt levels.
4.3 In developing the Long
Term Plan 2024-2034, Council has:
4.3.1 sought feedback from iwi partners,
including via an activity management plan (AMP) engagement process and a Long
Term Planning Summit with Iwi Leaders
4.3.2 provided opportunity for elected
members to have input across many workshops on key matters, approaches and
priorities (including on draft AMPs), overall work programmes, budgets and
content of the Consultation Document
4.3.3 provided opportunity for elected
members to discuss with their communities matters related to the Long Term Plan
and input those views through workshops
4.3.4 made decisions at Council meetings on
matters for inclusion in the proposed Long Term Plan and matters for
consultation alongside at key stages across financial year 2023/24
4.3.5 provided the draft Consultation
Document and supporting documents to Audit NZ in February 2024 for review.
4.4 The Consultation
Document has been prepared assuming that Council will continue to provide water
services throughout the 10 years of the Plan. This is consistent with the
current Government’s direction and Council resolution on 14 December 2023
to include the three water activities in the Long Term Plan.
5. Discussion
Decision
to refine the Storm Recovery Charge proposal
5.1 Council decided in December
2023 to consult on a Storm Recovery Charge targeted rate set on a uniform basis
of $330 (including GST) per rating unit for ten years (CL/2023/294). Following
further consideration in early 2024, elected members provided feedback in
support of refining the rating proposal to apply it to all separately used or
inhabited parts of a rating unit (SUIP). A rating unit is typically tied to a
title of land whereas a SUIP is based on separately occupied portions of a
property (e.g. for a separate tenancy, lease, or license). Taking this approach
reduces the charge’s annual amount by spreading the cost of recovery to a
wider group of ratepayers – i.e. including individual units of
accommodation within retirement villages, multi-unit residential properties and
individual commercial tenancies as SUIPs within a rating unit.
5.2 Staff recommend
setting the annual charge at $300 (including GST). This includes some
contingency for potential cost variations over the six year recovery work
programme. In the event the recovery costs are paid off earlier, it would
result in the charge being reduced in later years or ended earlier than the 10
years. A further option, if there is a surplus, would be to transfer it to the
General Emergency Fund. If there are any overruns in the recovery costs it is
not intended to increase the charge but to meet this from the General Emergency
Fund or general rates.
Decision
to redirect funding from Better Off Funding
5.3 Council decided in
September 2022 to allocate $50,000 of Better Off Funding to help promote a
community car sharing scheme in Nelson (CL/2022/206). Following consideration
of Council’s draft budgets and financial constraints, elected members
provided feedback in support of redirecting this funding to another Better Off
funding project, the transition of the Arts Council Nelson to an arts
development agency. This change allowed a saving in rates funding that would
otherwise have been required to allow the transition to proceed. A decision is
required to reallocate the funding, which is sought at recommendation 3 of this
report. Any promotion of car sharing by staff will, as a result, be undertaken
within existing budgets.
5.4 In September 2022,
Council also allocated Better Off Funding to a broader He Tātai Whetū
– Whakatū Nelson Arts and Creativity Strategy implementation
project. This included an Arts Relief Package, initially envisaged to provide
grants to local artists to create arts activations in the city. Council
subsequently decided in August 2023 (CL/2023/179) to:
5.4.1 retain $50,000 funding for the Arts
Relief Package
5.4.2 select the Nelson Arts Council/the
Arts Development Agency as the agency to implement the package
5.4.3 note that the He Tātai
Whetū/Arts and Creativity Strategy Taskforce would consider the best
approach for the package prior to its introduction.
5.5 The taskforce has
reassessed the package and does not think Council needs to change its original
intent to provide financial opportunities to local practitioners but suggested
a focus on supporting city revitalisation projects, which will be taken on
board through the implementation.
Supporting
information
5.6 Under section 93G of
the LGA2002, Council must adopt the supporting information that is relied on by
the content of the Consultation Document, before it adopts the Consultation
Document itself. This information must also be made available to the public as
part of the consultation process. Some of the supporting information has been
approved at prior Council meetings in 2023/24 ready for consultation. A
complete list of the supporting information is included in Attachment 2.
5.7 To reflect Council
direction and audit requirements the following documents have been amended and
are attached for re-approval:
5.7.1 Draft Infrastructure Strategy
2024-2054 (Attachment 3)
5.7.2 Draft Financial Strategy (Attachment
4)
5.7.3 Draft Significant Forecasting
Assumptions (Attachment 5)
5.8 Staff seek adoption of
the following remaining supporting information:
5.8.1 Draft Supporting Financial Information
for the Long Term Plan 2024-34 Consultation Document (Attachment 6)
5.8.2 Draft Council Activity summaries
(Attachment 7)
5.8.3 Draft Nelson City Housing and Business
Capacity Assessment (Attachment 8)
5.8.4 Draft Nelson and Tasman Tier 2 Urban
Environment Housing and Business Assessment (Attachment 9).
5.9 Elected members
received drafts of the documents noted in points 5.8.2 to 5.8.4 in January 2024
prior to review by Audit NZ.
Fulfilling
Council’s financial consideration requirements
5.10 Council needs to consider the
financial prudency requirements of sections 100 and 101 of the LGA2002 when
developing the Financial Strategy. Council must make adequate and effective
provisions in the Long Term Plan to meet the expenditure needs identified in
the Plan. Council considered this when adopting the draft Financial Strategy on
1 February 2024. Council has budgeted to achieve the balanced budget
requirement across the ten years of the Long Term Plan.
Consultation
Document
5.11 Following Council decisions and
workshop feedback, the Consultation Document has been developed to achieve its
purpose under the LGA2002 and is now ready for adoption. A designed version
will be tabled at the meeting for information.
5.12 The Consultation Document, when
published, will include a report on behalf of the Auditor General confirming
whether it meets its purpose and discussing the quality of the underlying
information and assumptions. The opinion was not available at the time of the
agenda’s distribution – it will be tabled at the meeting.
5.13 The title, ‘Beyond the
storm’, reflects the theme of the Consultation Document and proposed Long
Term Plan. Nelson has faced recent challenges, including from natural
disasters, cost of living pressures and the consequences of the pandemic. The
proposed Long Term Plan has been developed in this context and to support
Nelson to move beyond these ‘storms’ over the next decade.
5.14 The Consultation Document identifies
eight key issues for community feedback:
5.14.1 Rates affordability
5.14.2 Buy-out of private properties affected by slips
5.14.3 Council’s forestry approach
5.14.4 Marina CCO proposal
5.14.5 Housing Reserve Fund changes
5.14.6 All-weather sports turf
5.14.7 Tāhunanui Beach facilities
5.14.8 Arts Hub.
5.15 Options for each key issue
– including Council’s proposal – are included to meet section
93C of the LGA2002. The issue relating to the buy-out of private properties
contemplates a significant new activity for Council. Sections 97 and 93E of the
LGA2002 also apply to this issue and an analysis of the ‘reasonably
practicable options’ is included. The draft Eligibility Buy-out Principles
have been updated following central government feedback. The draft principles
(Attachment 10) are attached for re-approval for consultation with the
community.
5.16 The Consultation Document also
incorporates sections summarising other proposed projects and changes and
Council’s financial approach to highlight matters for feedback and
support public participation in decision-making.
Consultation
5.17 Council is required to undertake a special consultative
procedure to seek feedback to inform the Long Term Plan 2024-2034 (to meet
section 93(2) of the LGA2002).
5.18 The aim of the consultation process is to:
5.18.1 improve
public awareness and understanding on Council’s Long Term Plan
5.18.2 seek
public views on the key issues, proposals and options for the Long Term Plan
5.18.3 meet
statutory requirements for consultation on the Long Term Plan and related
decisions.
5.19 The proposed consultation process involves:
5.19.1 preparation
and adoption of a consultation document and supporting information
5.19.2 a
submission period of 27 March to 28 April for the public to make submissions
5.19.3 hearings
to enable submitters to present their submissions to Council
5.19.4 deliberations
and decisions on the matters raised in submissions, followed by adopting the
final Long Term Plan 2024-2034.
5.20 Adoption of the final Long Term Plan and setting the rates
for 2024/25 is planned to occur on 27 June 2024.
5.21 The following are the key methods proposed to raise public
awareness of the consultation process:
5.21.1 advertisements
in local media
5.21.2 promotion
of the opportunity to submit on the Consultation Document in Our Nelson, which
is delivered to households in Nelson, including via a dedicated issue of Our
Nelson
5.21.3 providing
opportunities for the public to discuss the Consultation Document with elected
members (including using a stall at the Saturday Market and elected members
talking directly with their communities)
5.21.4 publicise
the Consultation Document and opportunity to submit by media release, on social
media and Antenno posts.
5.22 Copies of the Consultation Document and supporting
information will be available on Council’s website and at Council’s
Customer Service Centre and libraries.
5.23 These methods may be amended as the consultation process
progresses. Staff expect there will be local media coverage on the key issues
and other proposed projects and changes outlined in the Consultation Document.
Staff will also trial the use of
some artificial intelligence tools to help speed up processing of submissions
and reduce the resources used – for example, searching by keywords to
help categorise submissions.
5.24 The consultation process above is proportionate to the
significance of the matters raised and is in accordance with sections 93A, 82
and 83 of the LGA2002 for the Long Term Plan Consultation Document and sections
82 and 82A for the other consultations occurring at the same time.
Consultation information for related consultations
5.25 Council has previously approved
the following draft policies for consultation alongside the Long Term Plan
– draft Significance and Engagement Policy and three draft rating
policies. The draft Revenue and Financing Policy (Attachment 11) has been
updated to reflect Council direction and audit requirements and is attached for
re-approval. Consultation
information on these policies have been prepared for adoption (Attachments 12
to 14).
5.26 Consultation information and processes for the draft Development Contributions Policy and the proposed
Schedule of Fees and Charges 2024/25 were adopted on 7 December 2023 and 1
February 2024 respectively.
5.27 The Consultation Document refers to all of the related consultations
to raise awareness and encourage submissions on these topics.
6. Options
6.1 Development of a
Consultation Document is a legal obligation under sections 93B and 93C of the LGA2002.
Council can choose to amend the Consultation Document or delay its release to
the community but that would put at risk completion of the Long Term Plan
within statutory timeframes. Elected members have previously reviewed the
Consultation Document and had the opportunity to comment on it.
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Advantages
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· Meets
the requirements of the LGA2002.
· Provides
the community with the opportunity to provide feedback to Council on what is
proposed.
· The
statutory deadline of adopting the final Long Term Plan before the start of
2024/25 can be met.
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Risks and Disadvantages
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· Council
would not have an opportunity to make major changes to the documents, if it
considers they are needed prior to public consultation.
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Advantages
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· If
Council considers that the Consultation Document does not meet its needs or
the needs of the community, Council can request staff to make further changes
before releasing it for public consultation.
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Risks and Disadvantages
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· Financial
changes are likely to have an impact on the rates increase and level of debt.
· Revised
budgets and financial information, a Consultation Document and supporting
information would need to be developed, audited and adopted by Council, which
would delay the consultation process.
· High
risk that the final Long Term Plan will not be adopted before the start of
2024/25. This would mean that Council would not be able to strike its rates
for the 2024/25 financial year by 30 June 2024.
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7. Conclusion
7.1 The Consultation
Document sets out the key issues and other matters proposed to be included in
the Long Term Plan 2024-34 and is considered to provide a good basis for public
consultation. It is recommended that the Consultation Document and supporting information
be adopted and approved for public consultation.
8. Next Steps
8.1 A range of engagement
and communications activities are proposed to make the community aware of the
consultation and encourage submissions. In May, Council will consider the
submissions received, hold hearings and deliberations. A final Long Term Plan
will then be prepared for Council’s adoption before 30 June 2024.
Attachments
Attachment 1: 1852948764-360 -
Nelson’s Long Term Plan 2024-2034 Consultation Document - draft for adoption
(Circulated separately) ⇨
Attachment 2: 1852948764-634
- List of supporting information ⇩
Attachment 3: 1530519604-11301
- Draft Infrastructure Strategy 2024-2054 ⇩
Attachment 4: 1852948764-480
- Draft Financial Strategy ⇩
Attachment 5: 1852948764-675
- Draft Significant Forecasting Assumptions ⇩
Attachment 6: 332184083-5274
- Draft Supporting Financial Information for the Long Term Plan 2024-34
Consultation Document ⇩
Attachment 7: 1852948764-535
- Draft Council Activity summaries ⇩
Attachment 8: 336940202-11140
- Draft Nelson City Housing and Business Capacity Assessment ⇩
Attachment 9: 336940202-11141
- Draft Nelson and Tasman Tier 2 Urban Environment Housing and Business
Assessment ⇩
Attachment 10: 2010958706-10042
- Draft Eligibility Buy-out Principles ⇩
Attachment 11: 1852948764-352
- Draft Revenue and Financing Policy ⇩
Attachment 12: 1852948764-434
Consultation Information Draft Revenue and Financing Policy ⇩
Attachment 13: 1852948764-423
Consultation Information Draft Rating Policies ⇩
Attachment 14: 1852948764-424
Consultation Information Draft Significance and Engagement Policy ⇩
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Important considerations for decision making
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Fit with Purpose of Local Government
Adoption of the Consultation Document and related
documents is required under section 93 of the Local Government Act 2002.
Consulting on the Long Term Plan proposals supports
the purpose of Local Government by enabling our community to have input into
decisions that will impact community wellbeing.
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Consistency with Community Outcomes
and Council Policy
Consulting on the Long Term Plan proposals enables
community engagement. The content of the Long Term Plan Consultation Document
and budget proposals support all of Council’s community outcomes.
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Risk
Consultation reduces the risk that Council will
fund services or projects that are not supported by part or all of the
community. A broad programme of engagement over the consultation period
reduces the risk that feedback will be at a low level or not representative.
Adopting the Consultation Document and its
supporting information is considered low risk, as Council will consider the
views of the public before making its final decisions. The proposed process
is in line with the requirements of the LGA2002. There is a risk that some
members of the public might object to the final decisions that Council makes
or challenge the process. Ensuring a robust consultation process and
explaining the reasons for decisions will help mitigate this risk.
There is a risk that some in the community will not
be supportive of the effect on services that may be experienced due to the
reductions necessary to keep the average rates rises down. The impact of
reduced maintenance budgets will not always be obvious to the public but there
may be increased complaints where repairs are slower and services not as
responsive. Messaging about the balance Council has struck between fiscal
restraint and investment in the city and its services will help mitigate this
risk.
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Financial impact
The financial impact of the proposals in the
Consultation Document are reflected in the resulting proposed rates figures
and debt levels.
The consultation costs will be undertaken within
existing budgets.
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Degree of significance and level of
engagement
The Consultation Document and supporting documents
are collectively of high significance because they set out Council’s 10
year work programme and budgets. Having considered Council’s
Significance and Engagement Policy and the importance of other matters to the
district and its communities, eight key issues facing Council and the
district have been included in the Consultation Document.
Public consultation will be undertaken using a
special consultative procedure.
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Climate Impact
The
impact of climate change has been considered as part of development of the
Long Term Plan and in the supporting documents. While some climate change
budgets have had to be phased over a longer period for affordability, every
effort has been made to provide the expenditure needed to support Nelson to
adapt to climate impacts and for Council to meet its emissions targets.
A total of approximately $15
million is allocated across the ten years of the Long Term Plan for climate
specific projects. There are also many other projects that include actions
that will contribute to reducing emissions and adapting to the impacts of
climate change but that are not included in the total as climate change
action is not their primary purpose.
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Inclusion of Māori in the decision
making process
Engagement has occurred with iwi during the Long
Term Plan preparation process, particularly during development of the
Activity Management Plans and through the Long Term Planning Summit with Iwi
Leaders. Also, an update on the Long Term Plan process and related
consultations was provided to Te Ohu Whakahaere on 6 March 2024.
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Legal
context
Council
has the power to make these decisions in accordance with sections 93, 93A, 82
and 83 of the LGA2002 for the Long Term Plan Consultation Document and
sections 82 and 82A for the other consultations occurring at the same time.
Council’s
decision must be made in accordance with Part 6 of LGA2002. This requires use
of the Special Consultative Procedure for the Consultation Document and a
section 82 process using the principles of consultation as a guide for the
related consultations occurring at the same time.
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Delegations
The
decisions contained in this report are within the Council’s area of
responsibility.
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