Notice of the Ordinary meeting of
Nelson City Council
Te Kaunihera o Whakatū
Date: Thursday 27 June 2024 Time: 9.00a.m. Location: Council
Chamber |
Agenda
Rārangi take
Chairperson His Worship the Mayor Nick Smith
Deputy Mayor Cr Rohan O'Neill-Stevens
Members Cr Matty Anderson
Cr Matthew Benge
Cr Trudie Brand
Cr Mel Courtney
Cr James Hodgson
Cr Kahu Paki Paki
Cr Pete Rainey
Cr Campbell Rollo
Cr Rachel Sanson
Cr Tim Skinner
Cr Aaron Stallard
Quorum 7 Nigel Philpott
Chief Executive
Nelson City Council Disclaimer
Please note that the contents of these Council and Committee agendas have yet to be considered by Council and officer recommendations may be altered or changed by the Council in the process of making the formal Council decision. For enquiries call (03) 5460436.
Nelson City Council
27 June 2024
1. Apologies
Nil
2. Confirmation of Order of Business
3.1 Updates to the Interests Register
3.2 Identify any conflicts of interest in the agenda
There is no public forum.
5. Confirmation of Council Minutes of 23 May 2024 10 - 56
Document number R28623
Recommendation
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. |
6. Adoption of the Long Term Plan 2024-2034 57 - 69
Document number R28343
Recommendation
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.
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7. Adoption of Final Schedule of Fees and Charges 2024/25 70 - 86
Document number R28597
Recommendation
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.
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Confidential Business
Recommendation
That the Council
1. Excludes the public from the following parts of the proceedings of this meeting.
2. The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:
Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
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 |
Item 5: Confirmation of Council Minutes of 23 May 2024
Council 27 June 2024 |
Report Title: Confirmation of Council Minutes of 23 May 2024
Report Number: R28623
1. Purpose of Report
1.1 To confirm the minutes of the Council meeting held on 23 May 2024.
1. Confirms the minutes of the meeting of the Council, held and on 23 May 2024, as a true and correct record. |
Attachments
Attachment 1: Council, 23May2024 Minutes ⇩
Item 6: Adoption of the Long Term Plan 2024-2034
Council 27 June 2024 |
Report Title: Adoption of the Long Term Plan 2024-2034
Report Author: Louis Dalzell - Senior Policy Adviser
Report Authoriser: Nicky McDonald - Group Manager Strategy and Communications
Nikki Harrison – Group Manager Corporate Services
Report Number: R28343
1. Purpose of Report
1.1 To adopt the Long Term Plan 2024-2034 and set the rates for 2024/25.
2. Summary
2.1 Council is required at all times to have a Long Term Plan (LTP) and the current Plan only remains in force until 30 June 2024. A new LTP for the period 2024-2034 must be prepared and adopted by then.
Council has deliberated on submissions to the Consultation Document for the LTP 2024-2034 and other related policies consulted on. Audit New Zealand has audited the LTP and the audit opinion will be tabled at the meeting. Council can now adopt the final LTP and then set the rates for 2024/25.
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.
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4. Background
4.1 Public consultation on the LTP took place via the Consultation Document and supporting information from 27 March to 28 April 2024 along with related consultations (Revenue and Financing Policy, rating policies, Policy on Development Contributions, Significance and Engagement Policy and proposed Schedule of Fees and Charges for 2024/25). The opportunity to submit was publicised through a range of engagement and communications activities.
4.2 Council received 1537 submissions in total (1505 on the LTP Consultation Document and 32 on the related consultations), and 111 submitters spoke at hearings on 8, 9 and 10 May 2024. Council deliberated on the submissions on 23 and 24 May 2024. At the deliberations meeting Council considered the submissions and made decisions on a wide range of matters.
5. Discussion
Long Term Plan 2024-2034
5.1 The LTP is presented to Council for adoption prior to the end of June 2024 – as required by section 93 of the Local Government Act 2002 (LGA2002). Staff have prepared the LTP in accordance with decisions made by Council at deliberations and suggestions from Audit New Zealand.
5.2 The following tables summarise the impact on rates and debt of approved carry forwards, other changes since the consultation period and the deliberations decisions, compared to what was proposed in the Consultation Document.
Table 1: LTP 2024-2034 average rates increase summary
|
Year one 2024/25 |
Year two 2025/26 |
Year three 2026/27 |
Years four to 10 2027/28 – 2033/34 |
LTP Consultation Document |
8.2% Plus a $300 (GST incl.) Storm Recovery Charge |
5.4% |
4.8% |
Between 1.7% and 4.7% (Average of 3.3%) |
Final LTP 2024-2034
|
8.2% Plus a $300 (GST incl.) Storm Recovery Charge |
6.5% |
4.7% |
Between 3.0% and 4.2% (Average of 3.7%) |
Note: The average rates increases summarised in the table include an allowance for growth in the rating base. The Storm Recovery Charge will be charged for the 10 years of the LTP, but will not have an impact on projected average rates increases after the first year.
Table 2: LTP 2024-2034 projected debt increase summary
|
Year one Net debt at 30 June 2025 |
Year two Net debt at 30 June 2026 |
Year three Net debt at 30 June 2027 |
By Year 10 Net debt at 30 June 2034 |
LTP Consultation Document |
$248 million |
$252 million |
$280 million |
$526 million |
Final LTP 2024-2034
|
$252 million |
$259 million |
$288 million |
$504 million |
5.3 Council is forecasting to remain within its rates limit (except for years one and two due to the ongoing impact of inflation and the need to repay the August 2022 severe weather event) and its debt limit across the 10 years of the LTP.
Final adoption of other policies and schedules
5.4 Council needs to adopt the remaining policies that were consulted on with the LTP, which were not adopted at deliberations. The policies are included in the LTP document:
5.4.1 Rates Remission Policy (pages 283-291 of Attachment 1 1852948764-715)
5.4.2 Policy on Development Contributions (pages 294-374 of Attachment 1 1852948764-715)
5.5 Both policies have been updated to incorporate the decisions made at the deliberations and minor edits for consistency across documentation. The Revenue and Financing Policy, adopted at deliberations, has also been updated to reflect the confirmed community outcomes and is included for readoption (pages 253-279 of Attachment 1 1852948764-715).
5.6 The Nelson and Tasman Tier 2 Urban Environment: Draft Housing and Business Assessment and Draft Nelson City Housing and Business Capacity Assessment were prepared under the National Policy Statement on Urban Development and adopted as supporting information to the LTP consultation. Council needs to formally adopt the final versions of the HBAs, noting minor edits and corrections were made since consultation. The documents are attached (Attachment 2 336940202-11146 and Attachment 3 336940202-9003).
5.7 Staff have prepared a separate report on this agenda to adopt the Schedule of Fees and Charges for 2024/25 (the forecast LTP revenue has been aligned to the Schedule, so any change to the Schedule would require further reviewing of the LTP budgets before they could be adopted).
Infrastructure and Financial Strategies
5.8 The Infrastructure and Financial Strategies have been updated to reflect decisions made through the deliberations process. The strategies are included in the full LTP document from pages 119 to 252, and will be adopted as part of the LTP adoption.
Fulfilling Council’s financial consideration requirements
5.9 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 LTP to meet the expenditure needs identified in the LTP. For instance, Council has budgeted to achieve the balanced budget requirement across the 10 years of the LTP.
Setting of the rates
5.10 Following adoption of the LTP, Council needs to pass a resolution to set the rates for the 2024/25 financial year. This resolution must be passed after the LTP is adopted and the resolution must be consistent with the Council’s Revenue and Financing Policy and the Funding Impact Statement contained in that Plan. The Local Government (Rating) Act 2002 sets out the procedure for setting rates and penalties.
Communications with the public
5.11 After adoption, a media release will inform the public of key information about the LTP and the rates for 2024/25. A summary will be published in Our Nelson, and the final designed LTP document will be made available on Council’s website and at the Customer Service Centre and libraries. Responses will also be sent to submitters based on information provided to, and the discussions at, the deliberations meeting.
6. Options
6.1 Council has the following options
Option 1: Adopt the Long Term Plan 2024-2034 (Recommended option) |
|
Advantages |
· Implements the decisions made following consultation and deliberations. · Meets legislative requirements and timelines. · Enables rates for the 2024/25 year to be set and collected in a timely manner. · Enables staff to commence implementing the work programme in the LTP. |
Risks and Disadvantages |
· Council would not have an opportunity to make major changes to the document. · Some ratepayers may not agree with the decisions Council made during deliberations and may not want them implemented. |
Option 2: Delay adoption of the Long Term Plan 2024-2034 |
|
Advantages |
· If Council considers that any deliberations decisions have not been adequately reflected in the LTP, it can request staff make further changes prior to adoption. |
Risks and Disadvantages |
· If any major changes are to be made to the final LTP then Council will not meet statutory timelines and not be able to set rates for 2024/25 by 1 July 2024. · Potential that changes could involve revising budgets and financial information, which will involve substantial staff time and other resources (such as further auditing). · Creates a risk that the first rates instalment will not be collected in a timely manner or reflect the updated LTP settings. · Creates uncertainty for staff in terms of implementing the planned work programme and setting budgets for LTP year one. |
7. Conclusion
7.1 It is recommended that Council adopts the LTP 2024-2034 and sets the rates for the 2024/25 financial year.
8. Next Steps
8.1 If the LTP is adopted, staff will finalise the design of the Long Term Plan 2024-2034, and within one month publish it on Council’s website and make copies available at Council’s service centres and libraries. Responses will also be sent to submitters advising them of Council’s decisions.
Attachments
Attachment 1: 1852948764-715 - Long Term Plan 2024-2034 - draft for adoption (Circulated separately) ⇨
Attachment 2: 336940202-11146 - Nelson and Tasman Tier 2 Urban Environment: Housing and Business Assessment (Circulated separately) ⇨
Attachment 3: 336940202-9003 - Nelson City Housing and Business Capacity Assessment (Circulated separately) ⇨
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. |
Item 7: Adoption of Final Schedule of Fees and Charges 2024/25
Council 27 June 2024 |
Report Title: Adoption of Final Schedule of Fees and Charges 2024/25
Report Author: Martin Croft - Strategic Adviser Community Services
Report Authoriser: Andrew White - Group Manager Community Services
Report Number: R28597
1. Purpose of Report
1.1 To adopt the final Schedule of Fees and Charges 2024/25 for changes that require Council approval.
2. Summary
Council has consulted on the Draft Schedule of Fees and Charges 2024/25, received and heard submissions, and deliberated on the submissions. Council may now adopt the final Schedule of Fees and Charges 2024/25 for them to come into effect on 1 July 2024.
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. |
4. Background
4.1 Fees and charges are an important revenue source for Council. They are charged to recover costs of Council’s services, usually where there is some private benefit received. Fees and charges may be adjusted to achieve the targets Council set out in its Revenue and Financing Policy, which outlines the public/private benefit split used to determine the level of cost recovery from non-rate sources.
4.2 On 1 February 2024 adopted a Statement of Proposal for changes to the Draft Schedule of Fees and Charges for 2024/25 that required consultation. Council consulted on the Draft Schedule from 27 March to 28 April 2024 and received only one written submission and heard comments from two submitters at the hearings that related directly to the proposed changes to the schedule of fees and charges for 2024/25.
5. Discussion
Council deliberated on the submissions on 23 and 24 May 2024 and, in response to submissions, requested only one change to the Draft Schedule, which related to the Crematorium.
Agrees That the Council
1. Retains the crematorium; and
2. Adopts fees and charges at 100% cost recovery and amends the Revenue and Financing Policy to enable this; and
3. Investigates options for transitioning to sustainable non-fossil fuel options.
5.1 The Revenue and Financing Policy has since been amended to enable 100% recovery of Crematorium Costs.
5.2 Fees and charges for burials and cremations are managed under the Urban Environments Bylaw 2022, under clause 8.32 of the Bylaw and section 150(3)b of the Local Government Act 2022 (LGA). Amendment of these fees is subject to public consultation under section 82 of the LGA.
5.3 The proposed new fees for the Crematorium will need be consulted on and bought back to Council for approval at the earliest opportunity.
5.4 Following deliberations, staff have prepared the final Schedule of Fees and Charges 2024/25 (Attachment 1) in accordance with the Council direction from the deliberations.
6. Options
Option 1: Adopt the Final Schedule of Fees and Charges 2024/25 including any minor amendments (Recommended option) |
|
Advantages |
· Meets legislative requirements and timelines. · Implements the decisions made following consultation and deliberations. · Staff can commence implementing the new fees and charges from 1 July 2024. |
Risks and Disadvantages |
· None. |
Option 2: Delay adoption of the Final Schedule of Fees and Charges 2024/25 |
|
Advantages |
· This option would apply if Council considered that deliberations decisions were not adequately reflected in the final Schedule of Fees and Charges 2024/25. |
Risks and Disadvantages |
· Changes are likely to mean Council would not be able to implement the new fees and charges from 1 July 2024. |
7. Conclusion
7.1 Council has carried out a robust process to develop its Schedule of Fees and Charges 2024/25, including consulting using a Special Consultative Procedure. This report enables the Council to adopt the final Schedule of Fees and Charges 2024/25, which is based on decisions it made at the deliberations meeting on 23 and 24 May 2024.
8. Next Steps
8.1 Staff will update the website with the 2024/25 Schedule of Fees and Charges.
Attachments
Attachment 1: 1598046314-154 Final Schedule 2024-25- Fees and Charges for Council approval ⇩
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. |