That the Council

1.    Confirms the minutes of the meeting of the Council, held and on 23 May 2024, as a true and correct record.

That the Council

1.    Receives the report Adoption of the Long Term Plan 2024-2034 (R28343) and its attachments (1852948764-715, 336940202-11146, 336940202-9003); and

2.    Adopts the following policies:

a.     Revenue and Financing Policy (pages 253-279 of Attachment 1 1852948764-715);

b.    Rates Remission Policy (pages 283-291 of Attachment 1 1852948764-715); and

c.     Policy on Development Contributions (pages 294-374 of Attachment 1 1852948764-715).

3.    Adopts the Nelson  and Tasman Tier 2 Urban Environment: Housing and Business Assessment (Attachment 2 336940202-11146) and the Nelson City Housing and Business Capacity Assessment (Attachment 3 336940202-9003); and

4.    Adopts the Long Term Plan 2024-2034 (Attachment 1 1852948764-715) in accordance with Section 93 of the Local Government Act 2002; and

5.    Agrees the Mayor and Chief Executive be delegated authority to approve any minor editorial amendments required to the document prior to the public release of the Long Term Plan 2024 - 2034; and

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

7.    Sets the following rates under the Local Government (Rating) Act 2002, on rating units in the district for the financial year commencing on 1 July 2024 and ending on 30 June 2025.

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

Revenue approved:

General Rate                                        $56,253,939

Uniform Annual General Charge         $7,610,966

Stormwater Charge                               $7,199,211

Storm Recovery Charge                         $6,702,202

Flood Protection Rate                             $3,931,527

Waste Water Charge                           $12,486,739

Water Annual Charge                              $4,807,647

Water Volumetric Charge                    $11,217,842

Rates and Charges (excluding GST)   $110,210,073

Goods and Services Tax

(at the current rate)                            $16,531,511

Total Rates and Charges                     $126,741,584

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 0.40825 cents in the dollar of land value on every rating unit in the “residential – single dwelling” category.

·          a rate of 0.40825 cents in the dollar of land value on every rating unit in the “residential empty section” category.

·          a rate of 0.44908 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 1.39620 cents in the dollar of land value on every rating unit in the “commercial – excluding inner city and Stoke commercial” category. This represents a plus 241.9965% differential on land value.

·          a rate of 1.97767 cents in the dollar of land value on every rating unit in the “commercial inner city” category. This represents a plus 384.427% differential on land value.

·          a rate of 1.69506 cents in the dollar of land value on every rating unit in the “Stoke commercial” category. This represents a plus 315.201% differential on land value.

·          a rate of 0.26536 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 0.40825 cents in the dollar of land value on every rating unit in the “forestry” category.

·          a rate of 0.36743 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 $344.23 per separately used or inhabited part of a rating unit.

(3) Stormwater Charge

A targeted rate under section 16 of the Local Government (Rating) Act 2002 of $385.79 per rating unit, excluding Rural rating units, Saxton’s Island and Council’s stormwater network.

(4) Storm Recovery Charge

A targeted rate under section 16 of the Local Government (Rating) Act 2002 of $300.00 per separately used or inhabited part of a rating unit.

(5) Flood Protection Rate

A targeted rate under section 16 of the Local Government (Rating) Act 2002 of 0.03725 cents in the dollar of land value, excluding Saxton’s Island and Council’s stormwater network.

(6) Waste Water Charge

A targeted rate for waste water disposal under section 16 of the Local Government (Rating) Act 2002 of:

·        $640.09 per separately used or inhabited part of a residential, multi residential, rural, forestry 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 $160.02 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.

(7) Water Annual Charge

A targeted rate for water supply under section 16 of the Local Government (Rating) Act 2002 per connection on all rating units where a water meter is installed for the property, of:

Water charge (per connection)                  $251.66

(8) 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           2.626 per m³

Usage from 10,001 – 100,000 cu.m/year

                                                           $2.232 per m³

Usage over 100,000 cu.m/year        $1.838 per m³

Summer irrigation usage

over 10,000 cu.m/year                     $2.442 per m³

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 before the Penalty Applied date 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 8 July 2024 to any balance from a previous rating year (including penalties previously charged) remaining outstanding on 1 July 2024.

·          a further additional charge of 10% will be added on 8 January 2025 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 8 January 2025.

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.

That the Council

1.    Receives the report Adoption of Final Schedule of Fees and Charges 2024/25 (R28597) and its attachment (1598046314-154); and

2.    Notes that, with the exception of fees for the Crematorium, staff have incorporated in the Schedule of Fees and Charges 2024/25 the decisions made at the deliberations meeting on 23 and 24 May 2024 following public consultation between 27 March and 28 April 2024; and

3.    Adopts the Final Schedule 2024-25- Fees and Charges for Council approval (1598046314-154) that require Council approval; and

4.    Notes that staff will notify submitters of Council’s decisions on the Schedule of Fees and Charges 2024/25.

1

Confirmation of Council Minutes of 23 May 2024

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

Important considerations for decision making

Fit with Purpose of Local Government

The LTP development and consultation process enables Council to democratically make decisions on behalf of its community, and to consider its services, work programme and budgets in terms of the wellbeing of its community in the present and for the future.

Adopting the LTP and setting the rates fits with the purpose of local government as these two processes set out the services Council intends to provide, how these services will be measured, and how each service will be funded.

Consistency with Community Outcomes and Council Policy

Implementing the LTP is the key method used by Council to achieve the Community Outcomes and a vehicle for updating key Council policies and strategies.

Risk

There is a risk that some members of the public/stakeholders might not support or object to the final decisions that Council makes or challenge the process. Ensuring a robust consultation and decision-making process and clearly explaining the reasons for decisions through communications to the public will help mitigate this risk.

There are continued areas of uncertainty that present risks to the 10 year work programme, such as from legislative and regulatory change, climate change and natural disasters, and the economic environment (as outlined in the LTP’s significant forecasting assumptions). Changes that impact the work programme will need to be responded to by Council as they arise.

Financial impact

The Long Term Plan 2024-2034 will be the basis of Council expenditure across the next 10 years (subject to subsequent annual plans and LTPs) and will enable the setting the rates for the 2024/25 financial year. The financial impacts of the content of the LTP have been considered by Council during the preparation of the work programme and budgets for inclusion in the Consultation Document and during deliberations on submissions. The financial impact on rates and debt of adopting the LTP is outlined in sections 5.2 and 5.3 of this report.

Degree of significance and level of engagement

The decisions on the content of the LTP are of high significance to residents and ratepayers of Nelson because of the financial and services implications. Public consultation was undertaken using a special consultative procedure to meet the requirements of the LGA2002.

Climate Impact

The decisions in this report will impact on Council’s ability to proactively respond to the impacts of climate change now or in the future. The impact of climate change has been considered as part of development of the LTP. 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 reduce its emissions.

The consultation process has allowed the community to provide feedback on Council’s climate response budgets and activities. More than $13 million is allocated across the 10 years of the LTP 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.

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. Prior to community consultation, an update was provided to Te Ohu Whakahaere on 6 March. Submissions were received from several Māori organisations, iwi trusts and iwi-affiliated commercial entities and considered at deliberations.

Legal context

Council’s decision must be made in accordance with Part 6 of LGA2002. This required 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.

Council has the power to make these decisions in accordance with sections 76AA, 93, 102 of the LGA2002 for the Long Term Plan and other policies for adoption, and section 23 of the Local Government (Rating) Act 2002 for the setting of the 2024/25 rates.

Delegations

The decisions contained in this report are within Council’s area of responsibility.

Important considerations for decision making

Fit with Purpose of Local Government

The recommendations in this report assist with better allocation of the costs of delivering services between users and ratepayers, helping to promote social, economic, environmental, and cultural wellbeing of communities in the present and for the future.

Consistency with Community Outcomes and Council Policy

The recommended changes to fees and charges assists with achieving the stated funding outcomes in the Long Term Plan, and are aligned with the following community outcomes:

•      Our unique natural environment is healthy and protected.

•      Our infrastructure is efficient, cost-effective and meets current and future needs.

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

Risk

If proposed changes are not approved, the income generated from fees and charges may not cover actual costs incurred and result in a financial shortfall. It is also likely to lead to far greater increases in the future. Increasing fees and charges by too high a level however could result in dissatisfaction by those impacted by the increase.

Financial impact

The proposed increases to the higher range in the Revenue and Financing Policy better balances the costs of delivering services between users and ratepayers and lessens the general rates requirement.

Degree of significance and level of engagement

Staff assess most of the matters outlined in this report as being of medium significance where the fees and charges outlined in the report are proposed to increase higher than just CPI.

Consultation has occurred for these matters in accordance with the required statutory requirements in parallel with the consultation for the Long Term Plan 2024-2034.

Climate Impact

The proposal in this report will have no impact on the ability of Council to proactively respond to the impacts of climate change now or in the future.

Inclusion of Māori in the decision making process

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

Legal context

Section 12 of the Local Government Act 2002 provides Council with a broad general power for setting fees and charges for goods, services and amenities provided by Council to the community. Council has specific delegations for the setting of fees and charges in its Delegations Register. Council approval is required for increases in fees and charges over the current CPI or where Council approval is otherwise required (for example by a bylaw or by legislation).

Delegations

This is a matter for Council.