Agenda of Ordinary Council Meeting

24 March 2020

10.1 Adoption of draft Annual Plan 2020/21

File Number: A11286937

Author: Ben Burnand, Corporate Planner

Authoriser: Paul Davidson, General Manager: Corporate Services

Purpose of the Report

1. In accordance with the Local Government Act 2002, Council is required to produce and adopt an annual plan by 30 June 2020.

2. This report seeks your approval of the draft Annual Plan 2020/21, the draft User Fees and Charges 2020/21, and the updated draft Revenue and Financing Policy prior to consultation.

Recommendations

That the Council:

(a) Adopts the Annual Plan 2020/21 Consultation Document (CD) for public consultation from 25 March to 27 April 2020;

(b) Adopts the draft Annual Plan 2020/21 supporting financial information;

(d) Adopts the Statement of Proposal for the draft Revenue and Financing Policy as the basis for public consultation.

(e) Authorises the Chief Executive to approve minor drafting, financial and presentation amendments to the draft Annual Plan 2020/21 Consultation Document and Statement of Proposals for User Fees and Charges and the Revenue and Financing Policy prior to printing if necessary.

Executive Summary

3. The early development of the Annual Plan 2020/21 was based on a Council endorsed principle of a draft budget for capital and operations within the envelope of an average residential rates increase of no more than inflation plus 2%.

4. This endorsed approach was reviewed following several matters including the requirement for additional capital budgets, additional provisions for weathertightness claims, and the deferral of the elder housing divestment revenues. Following this review, the endorsed approach for the setting of the 2020/21 budget within the envelope of an average residential rates increase of no more than inflation plus 2% was no longer financially sustainable or prudent.

5. On 4 March 2020, Policy Committee considered various options to address the current financial situation for 2020/21 and to ensure we are preparing for future years as we develop the Long-term Plan 2021-31. Council resolved to approve a draft 2020/21 capital programme of $244M and an associated rates revenue increase of 12.6%. A further resolution was approved to amend the rating structure by reducing the Uniform Annual General Charge (UAGC) to 10% and increasing the Commercial differential to 1.3.

6. This report presents the draft Annual Plan and Supporting Financial Information for adoption for consultation following the decisions made at the Policy Committee meeting on 4 March 2020. The proposed Consultation Document (CD) (Attachment 1) and Statement of Proposals for the User Fees and Charges, and for the Revenue and Financing Policy require adoption in order to progress to public consultation. A draft Annual Plan 2020/21 summary document (a shortened version of the Consultation Document) will be tabled at this meeting and will be accompany our consultation material.

7. In addition, Report - Adoption of the Draft 2020/21 Development Contributions Policy presented at this meeting contains the Draft Development Contributions Policy as well as the Statement of Proposal for the Development Contributions Policy which will require adoption in order to progress to public consultation.

Background

8. On 10 December 2019, Council considered the indicative draft budget for the Annual Plan 2020/21. Council endorsed, in principle, the Annual Plan draft budget for capital and operations within the envelope of an average residential rates increase for 2020/21 of no more than inflation plus 2%.

9. In addition, Council

(a) requested options to achieve this rating level

(b) agreed to continue with year three of the rating structure changes to reduce the UAGC to 15% and increase the commercial differential to 1.2%

10. Following December 2019, there were a number of matters that affected Council’s financial outlook. The matters included additional capital budgets, additional provisions for weathertightness claims, and the deferral of elder housing divestment revenues. The cumulative effect of these matters resulted in the draft Annual Plan that was endorsed by Council in December 2019, no longer being financially sustainable or prudent.

11. On 4 March 2020, Council was presented with several options to address Council’s current financial situation. Report – Annual Plan 2020/21 – Draft 2020/21 Budget Options and Implications was presented to Council with the following immediate actions for consideration:

(a) Prioritising capital expenditure

(b) Increasing revenue

(d) Commencing engagement with the community and with regional and national partners regarding the city’s and Council’s ongoing fiscal challenges

(e) Commencing development of a plan to investigate, execute and decide upon options for medium-term solutions

12. Four specific options were considered by Council relating to the budget for 2020/21. These options had undergone a four-step process being:

(a) Determination of what needs to be delivered in 2020/21 (predominantly capital projects since they have a larger effect on the debt to revenue ratio)

(b) Determination of the appropriate debt to revenue ratio (to demonstrate prudent financial management and to ensure that Council’s financial positioning entering the Long-term Plan process is acceptable)

(d) Identification of the level of revenue required and the split of revenue sources to deliver on (a) to (c).

13. Council considered these matters on 4 March 2020 and resolved to:

(a) Approve the draft 2020/21 capital programme of $244M and associated rates revenue increase of 12.6%.

(b) Recognise that the rates increase of 12.6% is made up of:

(i) Business as usual general rate 3.9%

(ii) Waters 2.1%

(iii) Growth & transport planning 1.5%

(iv) Debt management 5%

(v) Other operating expenditure 0.1%

(c) Approve a further amendment to the rating structure by reducing the uniform annual general charge to 10% (over and above the reduction to 15% approved by Council in December 2019) and a further increase in the commercial differential to 1.3.

14. The draft Annual Plan 2020/21 has been produced in line with the resolutions from 4 March 2020. A Consultation Document (CD) has been produced accordingly which aims to consult with the community regarding Council’s preferred approach for 2020/21 and how we best position ourselves for future years.

15. It should be noted that the Annual Plan direction from Elected Members was provided prior to the COVID19 outbreak.

Supporting Financial Information

16. The attached Supporting Financial Information (Attachment 2) provides the information that is relied upon by the content of the proposed CD.

17. The Supporting Financial Information sets out the updated financial reports and how these compare to those presented in the 2018-28 Long Term Plan (LTP). The proposed Annual Plan budget for 2020/21 is based on year three of the LTP.

18. Since the development of the LTP, Council is experiencing significantly higher costs relating to its capital programme. Council signalled in the 2019/20 budget that this continues to put pressure on debt levels. For 2020/21, the risk of Council exceeding its debt-to-revenue ratio limit either in-year or in the following year, is much higher and necessitated reconsideration of the capital expenditure programme (and therefore debt levels) and/or the level of revenue. This was considered on 4 March 2020 with those resolutions providing the basis for the Supporting Financial Information.

19. The Supporting Financial Information will be made publicly available on our website in order to provide the community access to the financial detail relied upon by the CD.

CONSULTATION DOCUMENT

20. The purpose and content of the Annual Plan CD is set out in section 95A of the Local Government Act 2002. It must provide a basis for public participation in decision-making, identifying significant or material differences between the proposed Annual Plan and the content of the LTP for the relevant financial year.

21. Given the significance of both the short-term and long-term impact on debt, and proposed rates increase, the Annual Plan 2020/21 will go through consultation to enable Council to obtain feedback from the community regarding its preferred approach for 2020/21 and the long-term financial sustainability issue.

22. The attached Annual Plan 2020/21 CD (Attachment 1) has been drafted to seek community feedback.

STATEMENTS OF PROPOSAL

23. The attached Statement of Proposal – User Fees and Charges 2020/21 (Attachment 3) presents the proposed changes to the User Fees and Charges for year 2020/21. These were approved as the basis for consultation by Council on 19 February 2020. These will be consulted on alongside the Annual Plan 2020/21 with a reference to these processes included in the CD.

(a) Since the adoption of the draft User Fees and Charges schedule on 19 February 2020 the following fee amendments are proposed and reflected in the attached Statement of Proposal (Attachment 3):

(i) The proposed fee for the water consumption charge per m³ has increased from $2.22 (inclusive GST) to $2.32 (inclusive GST). The increase in this fee reflects increases in the costs of providing potable water and includes the result of the 5% debt management decision approved by Council at the Policy Committee on 4 March 2020. In the Water activity, the increased income required to retire existing debt is reflected in the volumetric charge.

(ii) New fees are proposed in the Development Works, and Asset Protection Bond and Service Connection areas, to recover actual costs incurred by Council. These fees relate to streetlight relocations, a monthly charge for Development Works Approval applications, and CCTV processing. In addition, it is proposed that the administration fee for Incomplete Works and Landscaping Bonds is increased to reflect actual costs. The fee changes are presented in the Statement of Proposal (Attachment 3).

(b) Council has requested a report that assesses the potential to provide a discounted dog registration fee for residents aged over 65. This report is due to be presented to Council on 21 April 2020 and may affect the user fees and charges for Animal Services. The 21 April report will advise Council on whether further consultation will be required if they decide to amend the draft user fees and charges for Animal Services.

(c) On 19 February 2020, Council approved a small increase and removal of the early bird fee is to discourage long stay commuter parking in favour of alternative transport modes and creating capacity for short stay parking.

24. The attached Statement of Proposal – Revenue and Financing Policy (Attachment 4) presents the proposed changes to Council’s Revenue and Financing Policy. This is required following the decision made on 4 March 2020 to further amend the rating structure by reducing the UAGC to 10% (over and above the reduction to 15% approved by Council in December 2019). The updated draft Revenue and Financing Policy for consultation is attached (Attachment 5).

25. The Statement of Proposal – Development Contributions Policy will also be considered by Council for adoption at this meeting through Report – Adoption of the Draft 2020/21 Development Contributions Policy.

Strategic / Statutory Context

26. The Local Government Act 2002 (LGA) requires local authorities to prepare and adopt an Annual Plan for each financial year. This report is in relation to the 2020/21 financial year, which is the third year of the LTP. Developing an Annual Plan requires consultation on changes that are significantly or materially different from the LTP. If there are no such changes, a local authority is not required to consult.

Legal Implications / Risks

27. In accordance with the LGA, Council must consult with the community if the annual plan includes significant or material differences from the content of the LTP for the financial year to which the proposed annual plan relates.

Consultation / Engagement

28. The Annual Plan will go through consultation to enable Council to obtain feedback from the community regarding its preferred approach for 2020/21 and the long-term financial sustainability issue.

29. The proposed updates to the User Fees and Charges, to the Revenue and Financing Policy, and to the Development Contributions Policy require consultation under the LGA and other Acts.

30. Consultation will take place between 25 March 2020 and 27 April 2020. Consultation on the Statement of Proposals for User Fees and Charges, the Revenue and Financing Policy, and for the Development Contributions Policy will be held concurrently. A formal submission process and hearings will be held in May 2020.

Significance

31. Tauranga’s Significance and Engagement Policy determines whether a matter is significant. In making the assessment against this policy, there is no intention to assess the importance of this item to individuals, groups, or agencies within the community and it is acknowledged that all reports have a high degree of importance to those affected by Council decisions. Materiality is defined as being something that would influence the decisions or assessments of those reading or responding to the consultation document.

32. In terms of the Significance and Engagement Policy the financial matters raised, and the budget adjustments identified and recommended through previous reports that have led to the draft Annual Plan are deemed to be significant. It is therefore proposed that the Annual Plan is presented to the community for consultation.

Next Steps

33. Following adoption of the Annual Plan 2020/21 documents, consultation will take place between 25 March 2020 and 27 April 2020. This will be followed by hearings on 4-7 May 2020, deliberations on 25-28 May 2020 and final adoption in June 2020.

Attachments

1. TO BE TABLED AT MEETING - Draft Annual Plan 2020-21 Consultation Document - A11338220

2. TO BE TABLED AT MEETING - Supporting Financial Information - A11342225

3. Statement of Proposal for 2020-21 User Fees and Charges Consultation - A11283607 ⇩

4. Statement of Proposal for 2020-21 Revenue and Financing Policy for Consultation - A11315703 ⇩

5. Draft Revenue and Financing Policy - AP2020-21 - A11331472 ⇩

Ordinary Council Meeting Agenda

24 March 2020

Statement of Proposal

Proposed 2020/21

Tauranga City Council Fees and Charges for Community Consultation

This Statement of Proposal includes:

· The proposed 2020/21 fees and charges that require consultation

· The reasons for the proposal; and

· How people can present their views on the proposal.

Proposed 2020/21 fees and charges

The Council’s fees and charges are set under the Local Government Act 2002 (LGA), Resource Management Act 1991 (RMA), Food Act 2014 and other legislation. Under the Local Government Act 2002 (LGA) Council is required to consult on user fees and charges where there is a significant or material difference to the budget in the Long-term Plan. Council is also legislatively required to consult on a number of other fees. This proposal sets out the fees and charges that meet this criterion (see table below).

Council’s user fees and charges are updated each year during the annual plan process. Updates reflect changing circumstances, Consumer Price Index (CPI) adjustments, new or removed fee requirements, or benchmarking with other Councils. The proposed fees and charges reflect the outcome of this review process. The key changes and reasons for these changes are outlined below.

Activity area
ANIMAL SERVICES	2020/21 Proposed fee	Current fee
Dog owner classification
Normal fee Discounted fee (if paid before 1 August)	$138 $92	$130 $87
Dangerous dogs (classified) Discounted fee (if paid before 1 August)	$207 $138	$196.50 $131
Service of notices
Mileage	$0.79/km	$0.60/km
Reason for proposal: PLEASE NOTE – Animal Services fees may be subject to change and will be dependent upon a Council report on 21 April 2020 to consider discounted dog registration fees for residents over the age of 65. Proposed increase to dog registration fees to match the operational cost. The mileage reimbursement fee has increased to reflect the current rate.

ASSET PROTECTION BONDS & SERVICE CONNECTION FEES	2020/21 Proposed fee	Current fee
Service connection fees
Service connection application fee	$228	$92
Streetlight relocation fee	$471	NEW
Reason for proposal: The increase in service connection application fees to reflect the actual cost processing applications. The new fee for streetlight relocation to recover the actual cost of this service.

BAYCOURT	2020/21 Proposed fee	Current fee
COMMERCIAL VENUE RENTAL – proposed fees below or 10% box office, whichever is greater after ticketing fees.
Complex
All day / Conference / Private functions	$3,943	$3,685
Performances	$3,814	$3,685
Exhibitions	$3,814	$3,685
Auditorium
All day / Conference / Private functions	$2,444	$2,280
Performances	$2,360	$2,280
Exhibitions	$2,360	$2,280
X Space
All day / Conference / Private functions	$878	$820
Performances	$861	$820
Exhibitions	$605	$585
Pre / Post show function	$308	$293
Terrace Room
All day / Conference / Private functions	$287	$268
Performances	$174	$168
Exhibitions	$303	$293
Pre / Post show function	$308	$293
Greenroom
All day / Conference / Private functions	$314	$268
Performances	$174	$168
Exhibitions	$303	$293
Pre / Post show function	$308	$293
COMMUNITY VENUE RENTAL – applies to performances and exhibitions only
Complex
Performances	$1,907	$1,843
Exhibitions	$1,907	$1,843
Auditorium
Performances	$1,180	$1,140
Exhibitions	$1,180	$1,140
X Space
Performances	$430.50	$820
Exhibitions	$303	$585
Terrace Room
Performances	$87	$84
Exhibitions	$152	$146.50
Greenroom
Performances	$87	$84
Exhibitions	$152	$146.50
Reason for proposal: For clarity, a community organisation fee and a separate commercial fee are proposed to be in place as opposed to a general fee and subsidised fee for community organisations.

BAY VENUES LIMITED (BVL)	2020/21 Proposed fee	Current fee
AQUATICS GENERAL ENTRY
Baywave
Adult	$8	$7.90
Child / Senior	$5.50	$5.20
Family	$22	$21
Spectator	$2	$1.50
Greerton
Adult	$6	$5
Child / Senior	$3.50	$2.50
Family	$15.50	$12
Spectator	$1	$0.60
Memorial / Otumoetai
Adult	$6	$4.80
Child / Senior	$3.50	$2.50
Family	$15.50	$11.70
Spectator	$1	$0.60
AQUATICS LANE HIRE
Standard Lane Hire – Peak	$12	$8.50
Standard Lane Hire – Off Peak	$12	$4
High User Lane Hire – Peak	$8.50	$8.50
High User Lane Hire – Off Peak	$8.50	$4
Schools (9am – 3pm)	$6	$4
Adult Squad Baywave – Peak	$4.50	$3.80
Adult Squad Baywave – Off Peak	$4.50	$3.80
Adult Squad Greerton / Memorial / Otumoetai – Peak	$3	$1.40
Adult Squad Greerton / Memorial / Otumoetai – Off Peak	$3	$1.40
Child Squad Baywave – Peak	$3	$3.80
Child Squad Baywave – Off Peak	$3	$3.80
Child Squad Greerton / Memorial / Otumoetai – Peak	$2	$1.40
Child Squad Greerton / Memorial / Otumoetai – Off Peak	$2	$1.40
AQUATICS MEMBERSHIPS
Adult – Baywave	$832	$418
Child / Senior – Baywave	$572	$418
Adult – Greerton / Memorial / Otumoetai	$624	$253
Child / Senior - Greerton / Memorial / Otumoetai	$364	$253
INDOOR SPORTS
Arena
Adult – Standard	$55	$46.20
Adult – Community	$46.50	$37
Youth / Senior – Standard	$37.50	$30
Youth / Senior – Community	$32.50	$24
Queen Elizabeth Youth Centre
Adult – Standard	$38.50	$32.40
Adult – Community	$33	$25.90
Youth / Senior – Standard	$27	$23
Youth / Senior – Community	$23	$18.40
Aquinas
Adult – Standard	$30.50	$32.40
Adult – Community	$25.50	$25.90
Youth / Senior – Standard	$20.50	$23
Youth / Senior – Community	$18	$18.40
Merivale Action Centre
Adult – Standard	$30.50	$24.80
Adult – Community	$25.50	$21.10
Youth / Senior – Standard	$20.50	$17
Youth / Senior – Community	$18	$14.80
Mount Sports Centre
Adult – Standard	$30.50	$23.40
Adult – Community	$25.50	$18.70
Youth / Senior – Standard	$20.50	$14.70
Youth / Senior – Community	$18	$11.80
COMMUNITY HALLS
Bethlehem
Adult – Standard	$26.50	$21.70
Adult – Community	$22.50	$17.40
Youth / Senior – Standard	$18.50	$17.30
Youth / Senior – Community	$15.50	$13.80
Cliff Road
Adult – Standard	$14.50	$10.90
Adult – Community	$12.50	$8.70
Youth / Senior – Standard	$10	$10.10
Youth / Senior – Community	$8.50	$8.10
Elizabeth Street
Adult – Standard	$14.50	$11.60
Adult – Community	$12.50	$9.30
Youth / Senior – Standard	$10	$8.20
Youth / Senior – Community	$8.50	$6.60
Greerton
Adult – Standard	$26.50	$23.40
Adult – Community	$22.50	$18.70
Youth / Senior – Standard	$18.50	$18.30
Youth / Senior – Community	$15.50	$14.60
Matua
Adult – Standard	$26.50	$22.40
Adult – Community	$22.50	$17.90
Youth / Senior – Standard	$18.50	$17.40
Youth / Senior – Community	$15.50	$13.90
Tauriko
Adult – Standard	$23	$20.60
Adult – Community	$19.50	$14
Youth / Senior – Standard	$16	$20.60
Youth / Senior – Community	$13.50	$14
Waipuna
Adult – Standard	$23	$17.70
Adult – Community	$19.50	$14.20
Youth / Senior – Standard	$16	$13.90
Youth / Senior – Community	$13.50	$11.10
Welcome Bay
Adult – Standard	$26.50	$23
Adult – Community	$22.50	$18.40
Youth / Senior – Standard	$18.50	$17.30
Youth / Senior – Community	$15.50	$13.80
COMMUNITY CENTRES
Arataki – XL Room (Heron & Dotterel)
Adult – Standard	$37.50	$29.10
Adult – Community	$32	$23.30
Youth / Senior – Standard	$26	$25.90
Youth / Senior – Community	$22	$20.70
Arataki – Large Room (Heron / Dotterel)
Adult – Standard	$29.50	$16.20
Adult – Community	$25	$12.90
Youth / Senior – Standard	$21	$13.90
Youth / Senior – Community	$18	$11.10
Arataki – Medium Room (Kingfisher / Penguin)
Adult – Standard	$23.50	$13.80
Adult – Community	$21.50	$11
Youth / Senior – Standard	$16	$12
Youth / Senior – Community	$14	$9.60
Arataki – Small Room (Sandpiper / Oyster Catcher)
Adult – Standard	$17.50	$10.60
Adult – Community	$15	$8.70
Youth / Senior – Standard	$12	$9.30
Youth / Senior – Community	$10	$7.60
Papamoa Community Centre – Large Room (Tohora / Aihe)
Adult – Standard	$29.50	$28.20
Adult – Community	$25	$22.60
Youth / Senior – Standard	$21	$28.20
Youth / Senior – Community	$18	$22.60
Papamoa Community Centre – Medium Room (Mako)
Adult – Standard	$23.50	$26.10
Adult – Community	$21.50	$19.30
Youth / Senior – Standard	$16	$26.10
Youth / Senior – Community	$14	$19.30
Papamoa Community Centre – Small Room (Tamure / Tarakihi / Patiki / Atrium)
Adult – Standard	$17.50	$20.40
Adult – Community	$15	$13.70
Youth / Senior – Standard	$12	$20.40
Youth / Senior – Community	$10	$13.70
Papamoa Sport & Recreation Centre – XXL Room (Surfbreaker & Dunes)
Adult – Standard	$45.50	$29.40
Adult – Community	$39	$23.50
Youth / Senior – Standard	$32	$29.40
Youth / Senior – Community	$27	$23.50
Papamoa Sport & Recreation Centre – XL Room (Surfbreaker)
Adult – Standard	$37.50	$18.90
Adult – Community	$32	$15.10
Youth / Senior – Standard	$26	$14.50
Youth / Senior – Community	$22	$11.60
Papamoa Sport & Recreation Centre – Large Room (Dunes / Beachside)
Adult – Standard	$29.50	$18.90
Adult – Community	$25	$15.10
Youth / Senior – Standard	$21	$14.50
Youth / Senior – Community	$18	$11.60
Papamoa Sport & Recreation Centre – Medium Room (Driftwood)
Adult – Standard	$23.50	$8.90
Adult – Community	$21.50	$7.10
Youth / Senior – Standard	$16	$6.80
Youth / Senior – Community	$14	$5.40
Papamoa Sport & Recreation Centre – Small Room (Seashell / Shoreline)
Adult – Standard	$17.50	$8.90
Adult – Community	$15	$7.10
Youth / Senior – Standard	$12	$6.80
Youth / Senior – Community	$10	$5.40
Reason for proposal: An increase to the above user fees and charges (as well as to rates-funded subsidy) is proposed to cover the cost of operation of these facilities which has grown by 7% per year over the last 4 years on average. The proposed approach has lower impact on users and a lower impact on rates. This option also enables BVL to simplify and rationalise its user fees and charges as entry prices across the network are currently overly complex are not consistent between facilities.

BUILDING SERVICES	2020/21 Proposed fee	Current fee
Building Consent Fees – staff hourly rates
Administration	$147	$144
Team Leader	$270	$264
Manager / Project Manager / Legal Services	$279	$273
Compliance Officer Pool Fencing	$219	$213
Technical Specialist (Hazardous Substances and New Organisms)	$236	$231
Environmental Planning Processing	$231	$162
PIM fees
Solar Heater – Installation only	$442.50	$433
Amended Plans
On-site minor variation	$90	NEW
Building Consent Administration Charges & Levies
Building levy ($1.75 per $1,000 (or part there-after of building works $20,000 or more). The BA04 requires Council to collect a levy to be paid to MBIE.	$1.75 per $1,000 (or part there-after of building works $20,444 or more)	$2.01 per $1,000 (or part there-after of building works $20,444 or more)
Priority Code Compliance Certificate
Code Compliance Certificate (over 5 years old) Drainage, Solid Fuel Heaters, Solar, Retaining Walls (Non-refundable CCC fee, in addition to CCC project value fees, plus hourly charge fees as applicable).	$383	NEW
Commercial Code Compliance Certificate (over 5 years old) (Non- refundable CCC fee, in addition to CCC project value fees, plus hourly charge fees as applicable).	$1,500	NEW
CCC Reactivation Fee	$180	NEW
Reason for proposal: Proposed increases for staff hourly rates to reflect demand on complexity of applications. Proposed increase to solar heater installation only to reflect actual cost. New fees proposed for on-site minor variations to Amended Plans, Code Compliance Certificate (over 5 years old), and Code Compliance Certificate Reactivation Fee. Correction to building levy fee paid to MBIE.

DEVELOPMENT WORKS	2020/21 Proposed fee	Current fee
Development Works Approvals, Observations / Testing / Reinspection
Minimum monthly charge for an active Development Works Approval application	$195	NEW
CCTV Inspections of Gravity Drainage Lines
CCTV processing fee	$90	NEW
Incomplete Works and Landscaping Bonds
Administration Fee (non-refundable)	$505	$280
Reason for proposal: Proposed increases to administration fee to reflect actual cost. Proposed new fees for CCTV processing and a minimum monthly charge for an active Development Works Approval application to cover actual cost to Council for these services.

LABORATORY FEES	2020/21 Proposed fee	Current fee
IANZ Accredited Tests
pH	$18.50	$18
Turbidity	$18.50	$18
Free Available Chlorine	$26.25	$25
E.coli	$50	$47.50
Total Coliforms	$50	$47.50
E.coli and Total Coliforms	$50	$47.50
Enterococci	$50	$47.50
Non Accredited Tests
Colour	$22	$21
%T 254nm	$22	$21
Conductivity	$22	$21
Salinity	$13	$12
Alkalinity	$28.50	$27
Iodometric Chlorine	$28.50	$27
COD	$33	$31
Ammonia Nitrogen	$38	$36.50
Nitrate Nitrogen	$30	$28
Dry Solids	$29	$27.50
Settleable solids	$29	$27.50
Volatile solids	$29	$27.50
Heterophile Plate Count	$38.50	$37
Soil pH	$75	$70
Soil conductivity	$65	$60
Toxicity Test	$160	$150
TKN	$47.50	$45
Dissolved Reactive Phos	$30	$25
Oil & Grease-SUB	$80	$76.50
Miscellaneous Fees
Sub sampling	$9	$8.50
Courier	$9	$8.50
Call back rate; per hour or portion thereof	$80	$75
Microscopic Exam	$85	$80
Reason for proposal: Please note - Laboratory fees are not an external fee available to the public. The proposed increase to the laboratory fees reflects new contract rates.

PARKING FEES	2020/21 Proposed fee	Current fee
Paid Parking Area
Paid Parking Area – Dive Crescent	$6 daily	$4 daily
Paid Parking Area – Cliff Road	$5 daily	$3 daily
Paid Parking Area (Off Street)	$10 daily	$8 daily
Paid Parking Area – per hour (on and off street)	$2.50/hr	$2/hr
Parking Buildings – Casual
2-3 hours	$5	$4
3-4 hours	$7	$6
4-5 hours	$9	$8
5-6 hours	$11	$10
6-7 hours	$12	$11
7-8 hours	$14	$12
Parking Buildings - Leased
Spring Street Lease – Covered (monthly)	$230	$200
Spring Street Lease – Uncovered (monthly)	$210	$180
Spring Street Lease – Basement (monthly)	$290	$250
Elizabeth Street Lease – Covered (monthly)	$230	$220
Elizabeth Street Lease – Uncovered (monthly)	$210	$200
Harington Street Lease – Covered (monthly)	$230	$220
Off-street leased carparks
TV 3 – Lease	$230	$220
Kingsview – Lease	$230	$220
Devonport – Lease	$210	$190
Dive Crescent – Lease	$128	$125
Reason for proposal: Early bird (pre 9.30am) fees have been removed. The proposed increases and removal of the early bird fee is to discourage long stay commuter parking in favour of alternative transport modes and creating capacity for short stay parking.

PARKS & RECREATION	2020/21 Proposed fee	Current fee
Events on Parks
Commercial, ticket price less than $50 – per day	$300	$230
Commercial, ticket price more than $50 – per day	$3,500	$3,022
Amenities charge – per site, weekdays, 9am to 5pm	$35	NEW
Amenities charge – per site, after hours, weekends and public holidays	$70	NEW
Markets on public open space per market – commercial operator	$250	NEW
Markets on public open space per market – not got profit organisation	$100	NEW
McLaren Falls - Hire Charges – Group Bookings (per night 3pm to 10am)
Hostel – sleeps 16	$200	$153
McLaren Falls - Hire Charges – Group Bookings (day fee 10am to 3pm)
Hostel – sleeps 16	$70	$60
McLaren Falls – Camping (per person per night)
Adults	$15	$10.50
McLaren Falls – Events
Over 100 participants	$300	NEW
Reason for proposal: Proposed increases to McLaren Falls hire charges adequately reflect the service provided and are aligned with fees from comparable regional parks. A new fee is proposed for McLaren Falls events with over 100 participants and new fees are proposed for amenities use for events on Parks. New fees are also proposed for markets on public open space for commercial and not for profit organisations.

PLANNING	2020/21 Proposed fee	Current fee
Staff Hourly Rates - Environmental Planning Staff
Environmental Planner	$234	$158
Senior Environmental Planner	$255	$193
Manager: Environmental Planning	$279	$222
Planning Technician	$147	$112
Intermediate Environmental Planner	$245	$173
Development Planner / Principal Planner	$270	$208
Team Leader: Environmental Planning	$270	$208
Staff Hourly Rates - Environmental Protection Staff
Team Leader: Environmental Monitoring	$270	$176
Environmental Monitoring Officer	$219	$151
Environmental Monitoring Technician	$147	NEW
Reason for proposal: The proposed increase to planning and protection staff charge out rates reflect the demand for services and their associated complexity. A new fee is proposed for Environmental Monitoring Technician.

REGULATION MONITORING	2020/21 Proposed fee	Current fee
Mobile Shops
Base Fee Marine Parade Tender sites per parking space (Christmas Day to Waitangi Day)	$750 per parking space	$700 per parking space
Reason for proposal: The base fee for Marine Parade has not been reviewed and updated. This fee was last reviewed in 2015.

SUSTAINABILITY AND WASTE	2020/21 Proposed fee		Current fee
Abandoned Cars
Storage fee (per day)	$20		$15
Reason for proposal: The proposed increase to the storage fee of abandoned cars reflects the increase in contract rates. Public Events waste monitoring services are no longer provided and have been removed from Council’s User fees and charges.
TAURANGA CEMETERY PARKS AND CREMATORIUM		2020/21 Proposed fee		Current fee
Burial of Ashes
Ashes Plot Catholic and Presbyterian		$450		NEW
Burials
Late fee for burials and cremations (Applies when services arrive later than time booked. See Cemetery rules for grace periods that apply)		$250		$235
Additional charges
Public Holiday Surcharge		$350		$315
Reason for proposal: There are proposed increases to the Burials late fee and public holiday surcharge. A new fee has been introduced for a new area for the Burial of Ashes. Some fees have been removed from the Burial of Ashes section as these areas are no longer available.

WATER SUPPLY	2020/21 Proposed fee	Current fee
General
Consumption Charge per m³	$2.32	$2.14
Reason for proposal: The increase in the water consumption charge reflects increases in the costs of providing potable water and includes the result from the 5% debt management decision approved by Council at the Policy Committee on 4 March 2020. In the Water activity, the increased income required to retire existing debt is reflected in the volumetric charge.

How can I make a submission?

The proposed 2020/21 Fees and Charges will be open for public submissions alongside the Annual Plan 2020/21 consultation from 25 March 2020 until 5.00pm 25 April 2020.

Full copies of the proposed fees and charges document and submission forms are available from Council’s Willow Street Customer Service Centre, the Tauranga, Mount Maunganui, Greerton and Papamoa Libraries and on Council’s website at www.tauranga.govt.nz/annualplan2020.

If you also wish to present your submission in person, Council will hear verbal submissions on the 4 – 7 May 2020. You can indicate if you wish to speak to your submission on the submission form.

Ordinary Council Meeting Agenda

24 March 2020

Statement of Proposal

2020/21 Development Contributions Policy

Under the Local Government Act 2002 Council may require development contributions. Council has had a Development Contributions Policy in place since 1 July 2004. This Policy has been reviewed annually in conjunction with the Council’s Annual Plan or Long-Term Plan process, with an amended Policy becoming operative on 1 July of each subsequent year.

The Draft 2020/21 Development Contributions Policy (2020/21 Policy) forms part of this proposal and includes revised schedules of charges (Tables 1 – 3 in Section 1).

This Statement of Proposal sets out:

· The reasons for the proposal;

· An analysis of the reasonable practicable options;

· A summary of proposed policy amendments for the 2020/21 Policy;

· A summary of the differences in fees and charges from the 2019/20 Policy compared to those in the draft 2019/20 Development Contributions Policy; and

· A copy of the Draft 2020/21 Policy.

Reason for the Proposal

Development contributions are an integral component in Council’s funding strategy, specifically in regard to the funding of growth-related capital expenditure. The proposed 2020/21 Development Contributions Policy will allow Council to continue to collect Development Contributions.

Reviewing, updating and amending the Development Contributions Policy ensures that the charges are based on the best possible data available to Council.

How to submit

Any organisation, group or member of the public may make a submission to Council in regard to the content of the Draft Development Contributions Policy. The Draft Policy will be distributed after 24 March 2020 along with information regarding methods to submit.

Full copies of the Statement of Proposal, the Draft Policy document and the submission forms are available from Council’s Willow Street Customer Service Centre, the Tauranga, Mount Maunganui, Greerton and Papamoa Libraries and on Council’s website at www.tauranga.govt.nz.

If you also wish to present your submission in person to the Mayor and Councillors then please indicate this on your written submission and Council staff will be in touch to advise you of dates for verbal submissions.

Analysis of Reasonably Practicable Options

The table below contains an analysis of the reasonable practicable options for the funding of growth-related capital expenditure incurred by Tauranga City Council. This includes the current proposal.

Option	Analysis
Charge Development Contributions under the Local Government Act 2002	Population and urban growth of the city is the reason much of Council’s capital expenditure needs to be undertaken. As the cause of this expenditure, it is fair that a significant portion of this cost is recovered directly from the development community through the collection of development contributions. While this does create a significant upfront cost for development, if these costs were not funded by development, the main alternative would be to increase rates by a substantial amount. Council’s view is that this would impose an unfair financial burden on the ratepayers of the city.
Financial contributions under the Resource Management Act 1991	Financial contributions are similar to development contributions. The main differences are that: · The implementation of a financial contribution system is open to merits-based appeal through the Environment Court for each individual development. This adds cost, time and uncertainty for Council. · The adoption and subsequent review of financial contribution systems is also open to merits-based appeal through the Environment Court. This adds further cost, time and uncertainty for Council. For these reasons, Council has, in most cases, chosen to use development contributions rather than financial contributions to fund growth-related capital expenditure. The limited circumstances where Council has chosen to use financial contributions are: · Where specific organisations are exempt from the payment of development contributions but not financial contributions. · To fund local reserve infrastructure within the Papamoa urban growth area. These provisions are summarised in the Draft 2020/21Development Contributions Policy and are set out in detail in Council’s City Plan..
Rates-funded loans	This would involve growth-related capital expenditure being funded in the same manner as most of Council’s other capital expenditure – through loans that are repaid through the collection of rates. This would impose the cost of growth-related capital expenditure on the whole community rather than targeting the funding of these costs at the growth community which have caused these costs to be incurred.
Targeted rates	This would be similar to development or financial contributions in the sense that funding would still be targeted at the growth community. The primary difference is that development contributions are charged upfront whereas the targeted rate would recover the costs over a period of time. This option would increase rates on new properties by a significant amount for an extended period of time. For example, it could potentially double rates for a period of 20 years. This is unlikely to be popular and may cause Council difficulties in the future when properties are sold to new owners. This has been Council’s experience to date with a relatively modest targeted rate in The Lakes development. It should also be noted that Council has not fully explored the details associated with implementing this type of targeted rate under the Local Government (Rating) Act 2002, and some legal impediments may exist.

Summary of proposed amendments to the 2019/20 Development Contributions Policy

1. The content of the 2020/21 Development Contributions Policy has not changed materially compared to the Operative Policy. A version of the Draft Policy showing tracked changes is available from Council upon request. Key changes that have been made to the policy compared to the Operative Policy are discussed below.

Updated Development Contribution Fees

2. Council reviews and updates all planned capital expenditure works on an annual basis. Changes to the development contribution funded works result in changes to development contribution fees. The following table shows the fees that are included in the Draft 2020/21 Development Contributions Policy and the percentage change compared to the current 2019/20 Development Contributions Policy.

Catchment	Charge basis	2019/20 DC Fees	Proposed 2021 DC Fees	Movement	Percentage change
Citywide	Per household	$8,538	$9,946	$1,408	16%
Bethlehem	Per additional lot	$12,495	$ 12,516	$21	0.2%
Ohauiti	Per additional lot	$11,334	$11,272	($62)	-0.5%
Papamoa	Per additional lot	$8,673	$ 8,701	$28	0.3%
Pyes Pa	Per additional lot	$6,750	$ 6,802	$52	0.8%
Pyes Pa West	Per additional lot	$30,758	$ 29,752	($1,006)	-3.3%
Tauranga Infill	Per additional lot	$3,568	$ 3,614	$46	1.3%
Tauriko	Per hectare	$359,759	$ 378,911	$19,152	5.3%
Wairakei
Sub catchment A	Per hectare	$483,220	$517,527	$34,307	7.1%
Sub catchment B	Per hectare	$331,678	$367,250	$35,572	10.7%
Sub catchment C	Per hectare	$667,971	$685,456	$17,485	2.6%
Welcome Bay	Per additional lot	$8,457	$ 8,480	$ 23.00	0.3%
West Bethlehem	Per additional lot	$26,332	$ 27,621	$1,289	4.9%

3. Causes for the changes in the development contribution fees are discussed on the following page.

Citywide Fees

4. The Citywide development contributions have increased from $8,538 per household to $9,919 per household. This increase is driven by the cost to construct the Te Maunga Wastewater Treatment Plant and by the increased cost to construct a large Trunk Watermain project which is funded via citywide development contributions.

5. The costs increase in the Te Maunga Treatment Plant are due to increased preliminary and general costs and contractor margins. The national trend has been going upward the last couple of years. There has also been an increase in costs due to poor ground conditions and the requirement for additional subfloor ground support for the bioreactor.

6. The new costs for the Trunk Watermain project are based on costing knowledge of similar projects which are already tendered and under construction as part of the Waiari Water scheme. Cost increases are reflective of market costs and include risk allowances.

Bethlehem, Ohauiti, Papamoa, Pyes Pa, Pyes Pa West, Tauranga Infill and Welcome Bay

7. The fluctuation in fees for development in these catchments are due to small changes in a number of different aspects which influence the final fee. They include small changes to project costs, changes in cost of capital and inflation allowances (which are calculated based on the expected time of constructing projects compared to expected timeframe of recovering the debt) and changes in timing of delivery. Most of these catchments also include a contribution towards the Southern Pipeline project which has also increased minimally (increase of $46 per lot due to updates to cost of capital calculations).

8. The decrease in the charge per lot in Pyes Pa West is primarily related to funding received from the New Zealand Transport Agency (NZTA) towards some of the higher value projects in that catchment. When funds are received from NZTA this decreases the portion of costs that are recovered as development contributions. These funds were received retrospectively (i.e. after the funds were spent) and so weren’t previously accounted for in the funding apportionments.

Wairakei

9. The cost for development in the Wairakei catchments is increasing by approximately $30,000 per hectare. These costs increases are primarily driven by increases for several planned wastewater projects – more specifically the costs of the Opal Drive and Wairakei Trunk networks.

10. These project costs were revised based on needs identified in a review of the wider wastewater networks needs for the eastern corridor area of Tauranga. The review considered wastewater network constraints, future needs and the ground conditions of the area to ensure that planned projects will provide adequately for future populations and resilience. The review also identified a number of new design requirements and provided a greater understanding of constraints and risk to be manged throughout construction.

Tauriko

11. The increase in development contribution costs for Tauriko primarily relates to the revised wastewater infrastructure required to service the far eastern catchment of Tauriko. The previously planned pump station is no longer considered a viable option to service the entire catchment area, therefore revised costs have been included for a new wastewater scheme that will in part service the Tauriko catchment. 39% of the new project costs (or $8.1M) will be funded from development contributions in Tauriko. This funding proportion is based on the expected wastewater flow from Tauriko compared to the wastewater flows from other areas of future development.

West Bethlehem

12. The increase in charges for West Bethlehem relates to a Council decision to subsidise development contribution levies in that catchment. The value of the subsidy decreases each financial year so that the levy will continue to increase until no subsidy is required. The Development Contributions Policy includes Table 70: Future local development contribution for West Bethlehem as discount reduces. This demonstrates the future project increases in fees for West Bethlehem as the value of the subsidy reduces.

Future development contributions increase

13. Section 1.4 of the DRAFT 2020/21 Development Contribution’s Policy includes a section which discusses expected changes to future development contributions policies. As with the Operative Policy there is a note outlining that the Citywide Development Contribution is expected to increase significantly in the 2022 financial year. At this stage the exact quantum of this increase is not known as it is dependent on the final financial cost of constructing the Waiari Water Supply Scheme and is subject to future decisions made by the Council over the next financial year, for example Council will be considering options to fund a number of planned community facilities using Citywide Development Contributions.

Ordinary Council Meeting Agenda

24 March 2020

10.3 Code of Conduct Complaint

File Number: A11324552

Author: Marty Grenfell, Chief Executive

Authoriser: Marty Grenfell, Chief Executive

Purpose of the Report

1. The purpose of the report is to consider an independent investigation into a Code of Conduct (the Code) complaint, determine whether a breach of the Code has occurred and what further action will be taken.

Recommendations

That the Council:

(a) Receives the report “Code of Conduct Complaint”; and

(b) Notes the findings of the independent investigation; and

(d) Notes that the complainant, interested party and the respondent take no part in the discussion or voting on this matter;

(e) Determines whether to concur or disagree with the findings of the independent investigation that the subject of this complaint did constitute a breach of the Code of Conduct; and

(f) Should the Council determine that a breach of the Code of Conduct did occur, determines what further action, if any, will be taken.

Executive Summary

2. The Chief Executive received a complaint from Councillor Andrew Hollis on 8 March 2020 concerning the alleged actions and behaviour of the Mayor Tenby Powell in regard to himself and Councillor Dawn Kiddie. The complaint was independently investigated, and the final report has been provided for consideration by the Council.

Background

3. The Code presumes that the complaint made under the Code will be dealt with in the public arena unless there are grounds for not doing so under the Local Government Official Information and Meetings Act 1987 (LGOIMA).

4. The Chief Executive received a complaint from Councillor Andrew Hollis (the complainant) on 8 March 2020 concerning the alleged actions and behaviours of the Mayor Tenby Powell (the respondent) in regard to himself and Councillor Dawn Kiddie during an Executive Briefing on 5 March 2020 regarding key messages for the Annual Plan 2020/21 Consultation Document.

5. The Chief Executive engaged Campbell Gourlay of Three60 Consult to investigate the complaints in accordance with the Tauranga City Council Elected Members’ Code of Conduct 2016-2019 (“the Code”) in particular Part Four: Compliance and Review and is provided as Attachment B to Mr Gourlay’s report.

6. The report from Campbell Gourlay, Three 60 Consult, was received on 17 March 2020 and is provided as Attachment 1 along with six attachments A-F.

7. Two pieces of legal advice were received from Brookfields in relation to this complaint and these are provided as Attachments 2 and 3 of this report. The first advice was in relation to hearing the complaint in a public forum (Attachment 2). The second advice was in relation to four questions set out below (Attachment 3):

· Is it permissible to meet beforehand to discuss the matter?

· Can the Mayor be suspended from committees or other bodies given his role as Mayor?

· If left with an even number of councillors to determine the matter, what should happen in the event of an even split?

· Should Cr Kiddie participate in consideration of the report on the complaint?

8. The Code provides that if the subject of a complaint is found to be material the investigator will inform the Chief Executive, who will inform the complainant and the respondent. The Chief Executive then prepares a report to the Council which will consider the findings and determine whether a penalty or another form of action is to be imposed.

9. Members with an interest in the proceedings may not take part in these proceedings including the decision-making and voting. This relates to Councillor Andrew Hollis (as complaint), Mayor Tenby Powell (as respondent) and Councillor Dawn Kiddie (as a member with an interest).

10. The 2016-19 Code of Conduct is due to be reviewed and the Council will consider a report at its meeting on 21 April 2020. The process for considering an investigator’s report and the penalties available will not change in the new proposed Code.

Strategic / Statutory Context

11. Clause 15 of Schedule 7 of the Local Government Act 2002 states that a council must adopt a code of conduct for members and that an elected member must comply with the code of conduct.

Process for considering the investigator’s report

12. Step 5 of Part 4: Compliance and Review of the Code sets out the process for considering the investigator’s report and states that the Council before making any decision in respect of the investigator’s report will give the member against whom the complaint has been made (in this case the Mayor) an opportunity to appear and speak in their own defence. The form of penalty that might be applied will depend on the nature of the breach, if one is found to have occurred, and may include the following actions:

(i) A letter of censure to the member;

(ii) A request (made either privately or publicly) for an apology;

(iii) A vote of no confidence in the member;

(iv) Removal of certain council-funded privileges (such as attendance at conferences);

(v) Restricted entry to council offices, such as no access to staff areas (where restrictions may not previously have existed);

(vi) Limitation on any dealings with council staff so that they are confined to the Chief Executive only;

(vii) Suspension from committees or other bodies; or

(viii) An invitation for the member to consider resigning from the council

13. The Council may decide that a penalty will not be imposed where a respondent agrees to one or more of the following:

(a) Attend a relevant training course; and/or

(b) Work with a mentor for a period of time; and/or

(d) Tender an apology

14. As part of the professional development programme for members, the Mayor has previously agreed to work with a mentor.

Options Analysis

Option 1 – Find a breach of the Code did occur

15. The Council has the option of concurring with the findings of the independent investigator that the subject of this complaint did constitute a breach of the Code of Conduct.

16. The Council may then decide whether or not to impose a penalty, as set out in the Code. Please note there is legal advice that the Mayor cannot be suspended from a committee or other body.

Option 2 – Find a breach of the Code did not occur

17. The Council has the option of disagreeing with the findings of the independent investigator that the subject of this complaint did not constitute a breach of the Code of Conduct.

18. If no breach of the Code has been found, no further action will be taken.

Financial Considerations

19. The cost of the independent investigation will be met within current budgets.

Legal Implications / Risks

20. A breach of the Code does not constitute an offence under the Local Government Act 2002.

Consultation / Engagement

21. There is no requirement to consult or engage the community about a complaint made under the Code of Conduct.

Significance

22. Considering a complaint made under the Code of Conduct is not considered to be significant in terms of the Council’s Significance and Engagement Policy.

Next Steps

23. No further steps are required once the Council has decided on this complaint.

Attachments

1. Attachment 1 - Code of Conduct Complaint by Cr Hollis Investigation Report - Campbell Gourlay - 17 March 2020 - A11338025 ⇩

2. Attachment A - Code of Conduct Issue - A11338027 ⇩

3. Attachment B - 2016-2019 Elected Members' Code of Conduct - A11338030 ⇩

4. Attachment C - Andrew Hollis Facebook 5 January 2019 - A11338032 ⇩

5. Attachment D - Andrew Hollis Facebook 23 October 2019 - A11338034 ⇩

6. Attachment E - Andrew Hollis Facebook 22 February 2020 - A11338035 ⇩

7. Attachment F - Andrew Hollis Facebook 5 March 2020 - A11338039 ⇩

8. Attachment 2 - Legal advice Brookfields Code of Conduct Complaint by Cr Hollis consider in public arena - 16 March 2020 - A11338022 ⇩

9. Attachment 3 - Legal advice Brookfields Code of Conduct Complaint by Cr Hollis - 4 questions - 18 March 2020 - A11338023 ⇩


AGENDA Ordinary Council Meeting Tuesday, 24 March 2020
I hereby give notice that an Ordinary Meeting of Council will be held on:
Date:	Tuesday, 24 March 2020
Time:	9am
Location:	Tauranga City Council Council Chambers 91 Willow Street Tauranga
Please note that this meeting will be livestreamed and the recording will be publicly available on Tauranga City Council's website: www.tauranga.govt.nz.
Marty Grenfell Chief Executive

	Fees in Operative Policy	Fees shown in February report	Fees in the Draft 2021 DC Policy
$ per hectare of land	$359,759	$352,404	$378,911