AGENDA

 

Ordinary Council Meeting

Thursday, 30 July 2020

I hereby give notice that an Ordinary Meeting of Council will be held on:

Date:

Thursday, 30 July 2020

Time:

9.30am

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

 


Terms of reference – Council

 

 

 

Membership

Chairperson

Mayor Tenby Powell

Deputy chairperson

Cr Tina Salisbury

Members

Cr Jako Abrie

Cr Larry Baldock

Cr Kelvin Clout

Cr Bill Grainger

Cr Andrew Hollis

Cr Heidi Hughes

Cr Dawn Kiddie

Cr Steve Morris

Cr John Robson

Quorum

Half of the members physically present, where the number of members (including vacancies) is even; and a majority of the members physically present, where the number of members (including vacancies) is odd.

Meeting frequency

Six weekly or as required for Annual Plan, Long Term Plan and other relevant legislative requirements.

Role

·        To ensure the effective and efficient governance of the City

·        To enable leadership of the City including advocacy and facilitation on behalf of the community.

Scope

·        Oversee the work of all committees and subcommittees.

·        Exercise all non-delegable and non-delegated functions and powers of the Council.

·        The powers Council is legally prohibited from delegating include:

o   Power to make a rate.

o   Power to make a bylaw.

o   Power to borrow money, or purchase or dispose of assets, other than in accordance with the long-term plan.

o   Power to adopt a long-term plan, annual plan, or annual report

o   Power to appoint a chief executive.

o   Power to adopt policies required to be adopted and consulted on under the Local Government Act 2002 in association with the long-term plan or developed for the purpose of the local governance statement.

o   All final decisions required to be made by resolution of the territorial authority/Council pursuant to relevant legislation (for example: the approval of the City Plan or City Plan changes as per section 34A Resource Management Act 1991).

·        Council has chosen not to delegate the following:

o   Power to compulsorily acquire land under the Public Works Act 1981.

·        Make those decisions which are required by legislation to be made by resolution of the local authority.

·        Authorise all expenditure not delegated to officers, Committees or other subordinate decision-making bodies of Council.

·        Make appointments of members to the CCO Boards of Directors/Trustees and representatives of Council to external organisations.

·        Consider any matters referred from any of the Standing or Special Committees, Joint Committees, Chief Executive or General Managers.

Procedural matters

·        Delegation of Council powers to Council’s committees and other subordinate decision-making bodies.

·        Adoption of Standing Orders.

·        Receipt of Joint Committee minutes.

·        Approval of Special Orders.

·        Employment of Chief Executive.

·        Other Delegations of Council’s powers, duties and responsibilities.

Regulatory matters

Administration, monitoring and enforcement of all regulatory matters that have not otherwise been delegated or that are referred to Council for determination (by a committee, subordinate decision-making body, Chief Executive or relevant General Manager).

 

 


Ordinary Council Meeting Agenda

30 July 2020

 

Order Of Business

1         Apologies. 7

2         Public Forum.. 7

3         Acceptance of Late Items. 7

4         Confidential Business to be Transferred into the Open. 7

5         Change to the Order of Business. 7

6         Confirmation of Minutes. 8

6.1            Minutes of the Council Meeting held on 30 June 2020. 8

7         Declaration of Conflicts of Interest 18

8         Deputations, Presentations, Petitions. 18

Nil

9         Recommendations from Other Committees. 18

Nil

10       Business. 19

10.1         Annual Plan 2020/21 - Adoption Report 19

10.2         Rates Resolution 2020/2021. 196

10.3         Borrowing Programme 2020-2021. 202

10.4         Adopt Final 2020/21 Development Contributions Policy. 206

10.5         Amendments to the Traffic and Parking Bylaw 2012. 209

11       Discussion of Late Items. 215

12       Public Excluded Session. 216

12.1         Public Excluded Minutes of the Council Meeting held on 30 June 2020. 216

12.2         2020 Reappointment of Directors to the Board of Bay Venues Limited. 216

 

 


1          Apologies

2          Public Forum  

3          Acceptance of Late Items

4          Confidential Business to be Transferred into the Open

5          Change to the Order of Business


Ordinary Council Meeting Agenda

30 July 2020

 

6          Confirmation of Minutes

6.1         Minutes of the Council Meeting held on 30 June 2020

File Number:           A11645303

Author:                    Jenny Teeuwen, Committee Advisor

Authoriser:              Robyn Garrett, Team Leader: Committee Support

 

Recommendations

That the Minutes of the Council Meeting held on 30 June 2020 be confirmed as a true and correct record.

 

 

Attachments

1.      Minutes of the Council Meeting held on 30 June 2020 

  


UNCONFIRMEDOrdinary Council Meeting Minutes

30 June 2020

 

 

MINUTES

Ordinary Council Meeting

Tuesday, 30 June 2020

 


Order Of Business

1         Apologies. 3

2         Public Forum.. 3

2.1            Delwyn Cooper, BOP Badminton Association; and Zane Jensen, Sport BOP. 3

3         Acceptance of Late Items. 4

4         Confidential Business to be Transferred into the Open. 4

5         Change to the Order of Business. 4

6         Confirmation of Minutes. 4

Nil

7         Declaration of Conflicts of Interest 4

8         Deputations, Presentations, Petitions. 4

Nil

9         Recommendations from Other Committees. 4

Nil

10       Business. 5

10.1         Multipurpose Badminton Facility - Baypark / Te Maunga site assessment 5

10.2         Spring Street Carpark Building - Progress Report on Seismic Assessment 5

10.3         City Centre objectives and decision-making timetable. 6

11       Discussion of Late Items. 8

12       Public Excluded Session. 8

12.1       Civic Accommodation Update and Civic Precinct Planning ………………………...…8

 

 

 

 

MINUTES OF Tauranga City Council

Ordinary Council Meeting

HELD AT THE Tauranga City Council, Council Chambers, 91 Willow Street, Tauranga

ON Tuesday, 30 June 2020 AT 9am

 

PRESENT:               Mayor Tenby Powell (Chairperson), Cr Tina Salisbury (Deputy Chairperson), Cr Jako Abrie, Cr Larry Baldock, Cr Kelvin Clout, Cr Bill Grainger, Cr Dawn Kiddie, Cr Steve Morris, and Cr John Robson

IN ATTENDANCE: Marty Grenfell (Chief Executive), Paul Davidson (General Manager: Corporate Services), Barbara Dempsey (General Manager: Regulatory & Compliance), Susan Jamieson (General Manager: People & Engagement), Christine Jones (General Manager: Strategy & Growth), Gareth Wallis (General Manager: Community Services), Robyn Scrimshaw (Reserves & Recreation Planner), Mark Smith (Manager: Spaces & Places), Paul Muller (Team Leader: Facilities), Ross Hudson (Strategic Advisor), Coral Hair (Manager: Democracy Services), Robyn Garrett (Team Leader: Committee Support), and Jenny Teeuwen (Committee Advisor)

 

 

1          Apologies

Resolution  CO14/20/10

Moved:       Cr Tina Salisbury

Seconded:  Cr Dawn Kiddie

That apologies from Cr Heidi Hughes and Cr Andrew Hollis for absence, and Cr Morris for lateness, be received and accepted.

Carried

 

2          Public Forum

2.1         Delwyn Cooper, BOP Badminton Association; and Zane Jensen, Sport BOP

A copy of Ms Cooper’s handout for this item can be viewed on Tauranga City Council’s website in the Minutes Attachments document for this committee meeting.

Attachments

1       Presentation handout - Multipurpose Badminton Facility

 

 

At 9.03am, Cr Morris entered the meeting.

 

 

Key points

·             The Bay of Plenty Badminton Association (BOP Badminton) first approached Council in 2008 via a submission to the 2008/09 Annual Plan requesting assistance to find a suitable location for a dedicated badminton facility.

·             BOP Badminton also approached the BOP Polytechnic regarding a joint venture.  This option fell through with the BOP Polytech merge in 2017.

·             BOP Badminton approached Council again in 2017.  Soper Reserve, Tatua Reserve and Baypark were identified as suitable options.  Soper Reserve was subsequently removed as an option.

·             Baypark‘s preference was to extend its own facility and integrate any new building into their current on-site management.  BOP Badminton wanted a land only lease and to own and manage their own facility.

·             Requested allocation of one piece of land so BOP Badminton could move ahead.

 

In response to questions

·             Baypark would provide better access and parking.

·             Badminton did not fit into a multi-purpose system very well.  The current indoor court network at Baypark was not conducive to badminton.  Preference was for a stand-alone facility to enable the organisation to generate an income for the sport.

·             The new facility would be used by all of the Western Bay of Plenty’s badminton clubs but each club would retain its own identity and run on different days.  The clubs would benefit from one administration and the ability to pool resources.

·             Participation in secondary school badminton increased by 7% over the last year.  Badminton featured in the AIMs games and had a good level of participation.

·             BOP Badminton ideally would like a 17 court facility to enable hosting national and international tournaments.

 

The Mayor thank Ms Cooper and Mr Jensen for their presentation.

 

3          Acceptance of Late Items

Nil

4          Confidential Business to be Transferred into the Open

Nil

5          Change to the Order of Business

Nil

6          Confirmation of Minutes

Nil 

7          Declaration of Conflicts of Interest

Nil

8          Deputations, Presentations, Petitions

Nil

9          Recommendations from Other Committees

Nil


 

 

10        Business

10.1       Multipurpose Badminton Facility - Baypark / Te Maunga site assessment

Staff           Robyn Scrimshaw, Reserves & Recreation Planner

 

Key points

·             The Tauranga Reserves Management Plan endorsed BOP Badminton to go on to Tatua Reserve, subject to Baypark not being readily available or suitable.

·             BOP Badminton would undertake a feasibility study on the finalised location.

·             It was recommended Tatua Reserve be approved.

 

In response to questions

·             The cost of geotechnical investigations varied greatly from site to site.

·             Tauranga City Council (TCC) staff had a good working relationship with Bay Venues Ltd (BVL).

·             The reclassification of a portion of Tatua Reserve would involve surveying off a piece of the land and the new reserve plan being lodged with Land Information New Zealand.

·             Soper Reserve could still work for a badminton facility but had been previously ruled out as the site was used for large events, particularly concerts, and there was some concernthat one could restrict the other.  Tatua would have less impacts on other likely users.

·             Parking and access for big tournaments would be considered as part of the feasibility study.

·             The height and design of the building discounted land in residential areas.

·             Site 1 at Baypark was used for stormwater tailings so the land was not compressed in any way and was unsuitable for the development of a facility.

·             BVL’s preference was for Site 5 at Baypark and extending the existing facility.

·             Site 4 was currently used as an access and egress for large events and concerts.

 

Resolution  CO14/20/11

Moved:       Cr John Robson

Seconded:  Cr Jako Abrie

That Council:

(a)         Acknowledges there is available and suitable land at Trustpower Baypark for development of additional facilities but recognises that further strategic planning is required before development of the site is suitable.

And

(b)     Approves Tatua Reserve as the most appropriate location for a new multi-purpose badminton facility.

Carried

 

 

10.2       Spring Street Carpark Building - Progress Report on Seismic Assessment

Staff           Paul Muller, Team Leader: Facilities

 

External     Dave Brunsdon, Consulting Engineer, Kestrel Group

 

A copy Mr Brunsdon’s presentation for this item can be viewed on Tauranga City Council’s website in the Minutes Attachments document for this committee meeting.

Attachments

1       Presentation - Spring Street Carpark Building - Progress Report on Seismic Assessment

 

Key points

·             There was no regulatory reason for a seismic assessment to be undertaken but following the Canterbury and Kaikoura earthquakes, there was an awareness that certain forms of long-span precast concrete flooring systems could have vulnerabilities.

·             The Earthquake Prone Building (EPB) threshold was 34% New Building Standard (NBS).  The structural walls were likely to rate between 50% and 67% NBS.  The precast flooring units were likely to rate above 34% NBS.  The north-eastern block walls and the floor slabs had been identified as scoring less than 34% NBS.

·             Next steps were to complete the overall Detailed Seismic Assessment and to retrofit the connection of the north-eastern block walls to the floor slabs.

 

In response to questions

·             How an earthquake would affect the building was dependent on the type and nature of the earthquake.

 

Resolution  CO14/20/12

Moved:       Cr Jako Abrie

Seconded:  Cr John Robson

That the Council receives the Spring Street Carpark Building - Progress Report on Seismic Assessment.

Carried

 

 

10.3       City Centre objectives and decision-making timetable

Staff           Ross Hudson, Strategic Advisor

 

External     Nigel Tutt, Priority One

 

Key points

·             As TCC moved towards the Long Term Plan (LTP) and reconsidered the role and function of the city centre post Covid-19, a refreshed direction for the city centre was required.

·             TCC would take a partnership approach to the refreshed direction and co-design with those with the capacity to effect change through investment.

·             TCC was working closely with Priority One on this.

·             A document with a shared narrative would be produced and used to both guide the market and TCC’s own investment decisions.

·             A partnership approach to the development of the city centre that was collegial, respectful and constructive to enable achievement of shared goals was important.

·             Signals from TCC decisions were also important.

·             The private developer community was positive about the city centre.

 

In response to questions

·             The Durham Street and Elizabeth Street projects demonstrated TCC’s willingness to partner in projects but TCC would need to build on this.

·             The CBD strategy was one component of the wider Te Papa Peninsula intensification project and was focussed more on investors.  TCC was looking to work in partnership with the development community as opposed to individual developers.

·             Developers would only invest in the city centre if it was viable to do so.

·             Engagement for this project had been with land and property owners in the CBD as opposed to existing business owners.  CBD business owners were engaged through other Spaces and Places projects, and programmes such as Downtown Tauranga.

·             The City Plan was created decades ago and the principles and philosophy at that time were market led.  Developers simply developed what the City Plan enabled them to do.  The philosophy had changed over time.  A City Plan Review report would be presented to the Urban Form and Transport development Committee in July.

 

Motion 

Moved:       Mayor Tenby Powell

Seconded:  Cr Tina Salisbury

That the Council:

(a)     Agrees to produce a refreshed ‘direction’, objectives and priorities for the city centre in partnership with key stakeholders to inform Council’s 2021-31 Long Term Plan.

(b)     Agrees that the proposed decision-making timetable and associated work is appropriate to the development of the 2021-31 Long Term Plan.

 

Amendment

Moved:       Cr Dawn Kiddie

Seconded:  Cr Steve Morris

That (a) be amended to read:

(a)         Agrees to produce a refreshed ‘direction’, objectives and priorities for the city centre in partnership with residents and key stakeholders to inform Council’s 2021-31 Long Term Plan.

In Favour:       Crs Bill Grainger, Dawn Kiddie, Steve Morris and John Robson

Against:           Crs Tenby Powell, Tina Salisbury, Jako Abrie, Larry Baldock and Kelvin Clout

lost 4/5

Amendment

Moved:       Cr John Robson

Seconded:  Cr Jako Abrie

That (a) be amended to read:

(a)         Agrees to engage with the developer community with regards to a refreshed ‘direction’, objectives and priorities for the city centre in partnership with key stakeholders to inform Council’s 2021-31 Long Term Plan.

 

The second amendment was adopted by the original mover and seconder and was substituted into the substantive motion.

 

The substantive motion as amended was then put.

Resolution  CO14/20/13

Moved:       Mayor Tenby Powell

Seconded:  Cr Tina Salisbury

That the Council:

(a)     Agrees to engage with the developer community with regards to a refreshed ‘direction’, objectives and priorities for the city centre in partnership with key stakeholders to inform Council’s 2021-31 Long Term Plan.

(b)     Agrees that the proposed decision-making timetable and associated work is appropriate to the development of the 2021-31 Long Term Plan.

In Favour:       Crs Tenby Powell, Tina Salisbury, Jako Abrie, Larry Baldock, Kelvin Clout, Bill Grainger, Dawn Kiddie and Steve Morris

Against:           Cr John Robson

carried 8/1

Carried

 

11        Discussion of Late Items

Nil

12        Public Excluded Session

RESOLUTION TO EXCLUDE THE PUBLIC

Resolution  CO14/20/14

Moved:       Cr Larry Baldock

Seconded:  Cr Kelvin Clout

(a)         That the public be excluded from the following parts of the proceedings of this meeting.

The general subject matter 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 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under section 48 for the passing of this resolution

12.1 - Civic Accommodation Update and Civic Precinct Planning

s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege

s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

s48(1)(a) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

 

(b)     Permit Mr David Lambie to remain at this meeting, after the public has been excluded, because of his knowledge of property development and corporate real estate.  This knowledge will be of assistance in relation to the matter to be discussed in Agenda Item 12.1.

Carried

 

At 11am, the meeting adjourned.

 

At 11am, Cr Jako Abie left the meeting.

 

At 11.15am, the meeting resumed in Public Excluded.

 

 

The meeting closed at 11.47am.

 

 

 

The minutes of this meeting to be confirmed at the Ordinary Council meeting held on 30 July 2020.

 

...................................................

CHAIRPERSON

 


Ordinary Council Meeting Agenda

30 July 2020

 

7          Declaration of Conflicts of Interest

8          Deputations, Presentations, Petitions

Nil

9          Recommendations from Other Committees

Nil


Ordinary Council Meeting Agenda

30 July 2020

 

10        Business

10.1       Annual Plan 2020/21 - Adoption Report

File Number:           A11635150

Author:                    Josh Logan, Team Leader: Corporate Planning

Kathryn Sharplin, Manager: Finance

Tracey Hughes, Financial Insights & Reporting Manager

Authoriser:              Christine Jones, General Manager: Strategy & Growth

 

Purpose of the Report

1.      This report is presented to Council to adopt the final Annual Plan 2020/21.

Recommendations

That the Council:

(a)     Adopt the Annual Plan 2020/21 (Attachment 1).

(b)     Authorise the Chief Executive to make any necessary minor drafting or presentation amendments to the Annual Plan 2020/21, revenue and finance policy and user fees and charges 2020/21 prior to final printing.

(c)     Adopt the revenue and finance policy (Attachment 2).

(d)     Adopt the user fees and charges for 2020/21 (Attachment 3).

 

Executive Summary

2.      Following consultation on the revised draft Annual Plan 2020/21, Council considered the Plan and deliberated on 16-17 July 2020. The decisions made by Council during the deliberations have been incorporated into the Annual Plan 2020/21. The final plan is presented to Council for adoption.

DISCUSSION

3.      The Local Government Act 2002 (LGA) requires Council to adopt an annual plan for each financial year, prior to commencement of that year. The annual plan’s purpose includes setting the proposed budget, identifying variations from the LTP, providing for integrated decision making, and providing accountability to the community.

4.      The Council considered and provided direction on issues related to the content and development of the draft Annual Plan 2020/21 through a series of meetings from December 2018 to June 2020. The reports, agendas and minutes relating to these annual plan meetings can be found on Council’s website (www.tauranga.govt.nz/council/council-documents/annual-plans). These decisions were reflected in the draft Annual Plan 2020/21 Consultation Document, revised draft Annual Plan 2020/21 Consultation Document and supporting information. These documents were presented to the community for consultation.

5.      Consultation on the draft Annual Plan 2020/21 was undertaken from 3 April - 3 May 2020 and 291 submissions were received. Further consultation on a revised draft Annual Plan 2020/21 was undertaken from 17 June - 1 July 2020 and 587 submissions were received with 85 submitters speaking at the hearings held on 2 - 7 July 2020. Many topics were covered, including issues presented in the consultation document and other feedback and suggestions.

6.      Council met on 16 and 17 July 2020 to deliberate and make decisions on the content of the final annual plan. The final Annual Plan 2020/21 (Attachment A) incorporates these decisions and is presented for adoption by Council.

Key changes from the draft Annual Plan 2020/21

7.      The key changes from what was proposed in the revised Annual Plan 2020/21 Consultation Document which were approved by Council during deliberations include:

(a)     Council changed its original decision to keep the hanging baskets in the city centre. This will save $79,000 in the coming year and $89,000 thereafter

(b)     Decided against increasing the Priority One budget by $130,000

(c)     Adding a further $200,000 for investment in sustainability planning and delivery bringing the total budget to $400,000

(d)     Reduced New Year’s Eve funding from $494,000 to $400,000

(e)     Opted to keep Our Place open with funding of $160,000

(f)      Added $200,000 for options and feasibility work on the Memorial Park walkway to inform an LTP discussion.

(g)     Contributing $40,000 funding for Awhina House

(h)     Contributing $200,000 funding for the Kāinga Tupu homelessness strategy

(i)      Contributing $40,000 funding to the Tauranga Community Housing Trust

(j)      Contributing $30,000 funding for Tauranga Community Foodbank

(k)     Contributing $25,000 funding for the Incubator creative hub

(l)      Contributing $20,000 funding for Taonga Tauranga to develop a ‘heritage intent’ (and another $20,000 for next year)

(m)    Contributing $20,000 funding for Envirohub to lead a ‘sustainable neighbourhoods’ project

(n)     Caring communities funding resource $150,000

(o)     Loan funded grant of $133,000 to Mount Maunganui Cricket Club which has a rates impact of $25,000

(p)     In terms of Council’s capital programme for 2020/21:

(i)      Providing $30,000 to identify dump sites for motor caravans, working with the NZ Motor Caravan Association

(ii)     $240,000 for improving Anzac Park

(iii)     Removal of the housing action bulk funding as sufficient budget is allocated elsewhere.

(iv)    $250,000 for Monmouth Redoubt improvements

(v)     $255,000 for bus shelters, changing the target from 13 new shelters to 30.

(q)     Provision of additional staff costs to support health and safety responsibilities and improved asset delivery valued at a net change of $330,000

(r)      Carryforward of operational budgets along with rates funding from 2019-20 totalling $400,000

(s)     Various budget and funding adjustments that were rates neutral but increased operating expenditure in non-rates funded activity

(t)      Various amendments to the capital programme including, capital projects carried forward from 2019-20, adjustments to cost and timing of projects and the addition of new projects on Mauao and for water supply to Tauriko Business estate and Tauriko West with a net impact on the capital programme of $7m.

 

8.      Additional operational expenditure as a result of deliberations totalled $1.17m.  Council requested that this additional cost be funded from any rates surplus or other budget savings so that total rates remained at an increase of 4.7% after growth.  Rates surplus funding from 2019/20 of $390,000 is available to fund costs in 2020/21.  Budgets across the organisation have been amended with capitalisation targets and other adjustments to achieve the required rates savings target. 

 

Directions to staff to inform the Long-term Plan 2021-31

9.      Through the development of the annual plan and during the deliberations council deferred a number of decisions or requested staff to prepare further information as part of the upcoming Long-term Plan (LTP) 2021-31.

10.    Topics of the requests include:

a)   Considering boat ramp charges in the 2021-31 LTP;

b)   Staff to review the provision of the tropical display house in Robins Park in the LTP process, including options to upgrade, relocate or demolish it;

c)   Staff to prepare an issues and options paper on allowing Mount Maunganui Men’s Shed to locate at Tatua or Cherokee Place reserve;

d)   Staff to prepare an issues and options paper on reclassifying Simpson Reserve, Papamoa as an active reserve/Gordon Spratt reserve capacity;

e)   Staff report back on the capital costs of a data collection system to inform parking decision making;

f)    Reaffirms its commitment to collaborate with the Wairakei Community Centre Trust in planning for a community centre in Papamoa East and investigate lease/design/build options.

 

Key financial indicators and consistency with LTP and Financial Strategy

11.    The table below summarises the financials for 2020/21 to be adopted. The full financials are included within the final Annual Plan 2020/21 document at Attachment 1. After deliberations the total rates increase remains at 4.7% as proposed in the consultation document.

 

 

Revenue and Finance Policy

12.    The Revenue and Financing Policy (Attachment 2) has been updated to include the amendment made to the policy as part of the annual plan deliberations. The change relates to the decision made to amend the rating structure by reducing the Uniform Annual General Charge (UAGC) from 20% to 10%.

13.    In the 2018-2028 Long Term Plan (LTP) Council resolved to:

(a)     introduce a commercial differential on the general rate phased in over three years from 1:1 to 1:1.2 in the 2020-21 rating year

(b)     reduce the percentage of rates assessed through the UAGC phased over the first three years of the LTP, from 30% to 15% by the 2020-21 rating year.

14.    Tauranga City has a higher UAGC than other New Zealand Metropolitan local authorities. A lower fixed charge places more rating burden on higher value properties than a higher fixed charge. Tauranga City has a lower commercial general differential, which impacts the amount of rates assessed on commercial rating units.

15.    In the revised draft annual plan for 2020/21 Council consulted on a proposal to further reduce the level of UAGC from 15% to 10%, which would increase the amount of rates assessed on higher value residential and commercial ratepayers.

16.    Council has heard submissions on the 2020/21 draft Annual Plan supporting and opposing the original LTP decision, and the amended proposal to further reduce the level of UAGC.

USER FEES and Charges

17.    User fees and charges are updated by Council on an annual basis. Updates reflect changing circumstances, Consumer Price Index (CPI) adjustments, new or removed fee requirements, or benchmarking with other Councils. Some user fees and charges are set by government legislation. The user fees and charges must fairly reflect the cost of services available and offered by Council.

18.    The majority of increases to the user fees and charges for the 2020/21 financial year were based on a CPI assumption of 1.7%. Where suitable, user fees and charges were rounded to the nearest dollar.

19.    Significant or material changes to the user fees and charges were publicly consulted on alongside the annual plan 2020/21 with any submissions considered during the deliberations. The changes to the user fees and charges that were approved by Council during deliberations include:

a)   In response to submissions received through the first round of consultation, Bay Venues Ltd (BVL) conducted a further review of their pricing schedule. Price increases relating to the funded network have been reduced significantly from the initial figure that was provided for the annual plan in January 2020, BVL have now communicated with council that they have adopted a CPI plus rationalisation approach

b)   Correcting the Water Supply Consumption Charge per m3 from $2.22 to $2.23.

20.    Since the annual plan deliberations, the fees and charges document has also been updated for ‘Animal Services fees’ to be in alignment with decision made by council on 21 April 2020 to maintain Dog registration at $87.00 per dog and $130.00 for Dangerous Dogs.

21.    The user fees and charges schedule has been updated accordingly and is presented at Attachment 3 for adoption by Council. These user fees and charges would take effect immediately if adopted.

Strategic / Statutory Context

22.    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 Long-term Plan 2018-28 (LTP). Developing an annual plan requires consultation on changes that are significantly or materially different from the LTP.

Options Analysis

Option 1: Adopt the Annual Plan 2020/21 and user fees and charges

23.    This option would adopt the Annual Plan 2020/21 as presented at Attachment 1 and also the updated Revenue and Finance Policy (Attachment 2) and user fees and charges (Attachment 3).

Advantages

Disadvantages

·  An annual plan is adopted for the 2020/21 financial year.

·  Revenue and Finance Policy is updated to reflect decisions of Council.

·  User fees and charges are adopted.

·  None

Recommended? Yes

 


 

Option 2: Amend or do not approve the Annual Plan 2020/21 and user fees and charges

24.    This option would not approve the Annual Plan 2020/21, updated Revenue and Finance Policy and user fees and charges which have both been developed with Council during 2019/21 and undergone consultation with the public.

Advantages

Disadvantages

·  None

·    Rates and water rates invoices will be delayed causing significant customer disruption and financial costs. This will reduce the time for ratepayers to pay from around four weeks to less than three weeks or alternatively pushing the rates due date into September which will incur significant costs such as payment of GST, and borrowing for delayed revenue, before rates are due for payment.

Recommended? No

Legal Implications / Risks

The role of the Annual Plan

25.    The Annual Plan is Council’s resource-allocation document for the year ahead. 

26.    Legally, the purpose of the Annual Plan is set out in section 95(5) of the Local Government Act 2002 (“the Act”) as being to:

(a)     contain the proposed annual budget and funding impact statement for the year to which the annual plan relates; and

(b)     identify any variation from the financial statements and funding impact statement included in the local authority’s long-term plan in respect of the year; and

(c)     provide integrated decision making and co-ordination of the resources of the local authority; and

(d)     contribute to the accountability of the local authority to the community.

27.    The Act also requires, at section 95(6), that the Annual Plan be prepared in accordance with the principles and procedures that apply to the 2018/28 Long-term Plan. 

Other relevant legislative context

28.    There are two key elements of the Act that need to be considered by Council in development and adopting an Annual Plan.

Prudent financial management

29.    Section 101 of the Act addresses financial management and, at sub-section (1) explicitly refers to prudent financial management in relation to both the current and future communities. 

‘A local authority must manage its revenues, expenses, assets, liabilities, investments, and general financial dealings prudently and in a manner that promotes the current and future interests of the community.’

30.    This means that Council needs to find the balance between the short-term and long-term interests of its community when managing its finances.


 

Balanced budget

31.    Section 100 of the Act requires that Council sets a balanced budget.  This is explicitly stated in sub-section (1) thus:

‘A local authority must ensure that each year’s projected operating revenues are set at a level sufficient to meet that year’s projected operating expenses.’

32.    Despite this requirement, sub-section (2) provides for Council to set a budget where projected operating revenues do not meet projected operating expenses if it considers it is financially prudent to do so.  In setting an ‘unbalanced budget’ Council’s consideration of financial prudence needs to address four matters listed in the Act and paraphrased as:

(a)     The costs of desired service levels and of maintaining the capacity and integrity of assets throughout their useful lives

(b)     The revenues available to maintain the capacity and integrity of assets throughout their useful lives

(c)     Inter-generational equity

(d)     Council’s own Revenue & Financing Policy and other financial policies.

33.    The 2020-21 annual plan budget does not meet the balanced budget benchmark meaning that operating expenditure exceeds operating and subsidy revenue.  However, this is not considered imprudent as the expenditure is funded by other means than annual revenue including:

(a)     depreciation expense is not funded where there is alternative funding available for asset renewals, such as NZTA subsidy

(b)     grants or expenditure is loan funded when it is to develop long term assets or plans so the costs to ratepayers is spread over time

(c)     unspent rates revenue from the previous year is available to spend on projects or other initiatives for the year. 

Significance

34.    Under the Significance and Engagement Policy 2014, these matters are of medium significance as they relate to the Council’s adoption of the annual plan.

Consultation / Engagement

35.    Consultation has been carried out in accordance with this Policy, resulting in submissions which were considered in developing the final Annual Plan 2019/20.

36.    Letters will be sent to submitters providing information on the decisions made by Council through the Annual Plan deliberation process.

Next Steps

37.    Following Council adoption, the Annual Plan 2019/20 will form the basis of the Council’s budget and workplan for the 2020/21 financial year (1 July 2020 – 30 June 2021).

Attachments

1.      Attachment 1 - Annual Plan 2020/21 - A11648486

2.      Attachment 2 - Revenue and Financing Policy - Annual Plan 2020/21 - A11648068

3.      Attachment 3 - User Fees and Charges - 2020/21 - A11648077  

 

          


Ordinary Council Meeting Agenda

30 July 2020

 


 

PDF Creator


 

PDF Creator


 


 


 


 


 


 


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 


 

PDF Creator


 


 


 


 


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator


 

PDF Creator


 


 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


Ordinary Council Meeting Agenda

30 July 2020

 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


Ordinary Council Meeting Agenda

30 July 2020

 


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 


 

PDF Creator

 


Ordinary Council Meeting Agenda

30 July 2020

 

10.2       Rates Resolution 2020/2021

File Number:           A11636317

Author:                    Jim Taylor, Transactional Services Manager

Authoriser:              Paul Davidson, General Manager: Corporate Services

 

Purpose of the Report

1.      To set the rates for the 2020/2021 rating year.

Recommendations

That the Council:

(a)        Sets the following rates under the Local Government (Rating) Act 2002, in accordance with the relevant provisions of the Council's Long Term Plan 2018-2028 and the Funding Impact Statement in the Annual Plan for the 2020/2021 rating year, on rating units in the city for the financial year commencing on 1 July 2020 and ending on 30 June 2021. 

      The rates and charges specified are inclusive of Goods and Services Tax at the prevailing rate.

I.    General Rate

 

A general rate set under section 13(2) (b) of the Local Government (Rating) Act 2002 at:

 

·      A rate of $0.00229907 in the dollar of capital value on all residential rateable rating units in the City.

·      A rate of $0.00275888 in the dollar of capital value on all commercial rateable rating units in the City.

 

(“residential” and “commercial” are as defined in the Funding Impact Statement).

II.   Uniform Annual General Charge

 

A uniform annual general charge set under section 15(1)(b) of the Local Government (Rating) Act 2002 at:

 

·      A rate of $296.00 per separately used or inhabited part of a rateable rating unit.

III.  Glass Collection Rate

A uniform targeted rate for the establishment of glass collection services in the City, and collection services, set under section 16(3)(b) and 16(4)(a) of the Local Government (Rating) Act 2002, on all rating units in the City on which there is one or more residential use and that will be provided with the glass collection service, at:

 

·      A rate of $37.34 per 45L bin capacity provided for each residential use on each rating unit in the City.

 

IV.  Wastewater Rate

 

A differential targeted rate for wastewater, set under sections 16(3)(b) and 16(4)(b) of the Local Government (Rating) Act 2002 at:

 

·    A rate of $505.78 for each water closet or urinal in a connected rating unit in the city.

 

·    A rate of $252.89 per separately used or inhabited part of a rating unit (as defined in the Funding Impact Statement) for any serviceable rating units in the city.

 

(“Connected” and “serviceable” rating units are defined in the Funding Impact Statement).

 

A rating unit used primarily as a residence for 1 household will not be treated as having more than 1 water closet or urinal.

V.   Water Supply Rates

 

Volumetric rate

 

A targeted rate for metered water supply set under section 19(2)(a) of the Local Government (Rating) Act 2002 at

 

·      A rate of $2.23 per cubic metre of water supplied.

 

Base rate

 

A differential targeted rate per connection on every rating unit in the City which is provided with a metered water supply service, set under sections 16(3)(b) and 16(4)(b) of the Local Government (Rating) Act 2002, calculated on the basis of the nature of the connection size as follows:

 

Meter Size

Amount

20mm

$33.00

25mm

$63.00

32mm

$63.00

40mm

$260.00

50mm

$514.00

80mm

$1,028.00

100mm

$1,266.00

150mm

$1,266.00

200mm

$1,266.00

250mm

$1,266.00

 

VI.  Water Supply Rates (unmetered)

 

Unmetered rate

 

A uniform targeted rate on every rating unit in the City which is provided with and connected to an unmetered water supply service, set under sections 16(3)(b) and 16(4)(a) of the Local Government (Rating) Act 2002, at:

 

·      A rate of $690.00 for each separately used or inhabited part of a rating unit as defined in the Funding Impact Statement.

VII. Economic Development Rate

A targeted rate for economic development in the City, set under section 16(3)(b) and 16(4)(a) of the Local Government (Rating) Act 2002 at:

 

·      A rate of $0.00051443 in the dollar of capital value on every commercial rateable rating unit (as defined in the Funding Impact Statement).

VIII.Mainstreet Rates

 

Targeted rates for Mainstreet organisations, set under section 16(3)(b) and 16(4)(a) of the Local Government (Rating) Act 2002, at:

 

·    A rate of $0.00051999 in the dollar of capital value for every commercial rating unit in the Tauranga Mainstreet rating area as defined in the Funding Impact Statement.

 

·    A rate of $0.00082296 in the dollar of capital value for every commercial rating unit in the Mt Maunganui Mainstreet rating area as defined in the Funding Impact Statement.

 

·    A rate of $0.00171421 in the dollar of capital value for every commercial rating unit in the Greerton Mainstreet rating area as defined in the Funding Impact Statement.

 

·    A rate of $0.00034526 in the dollar of capital value for every commercial rating unit in the Papamoa Mainstreet area as defined in the Funding Impact Statement.

IX.  Special Services Rates

 

            ‘The Lakes’ Targeted Rate

 

A uniform targeted rate for additional levels of service in relation to maintenance and renewal of street gardens, street trees, footpaths and the removal of litter from ponds provided to ‘The Lakes’ subdivision, located at Pyes Pa, set under section 16(3)(b) and 16(4)(a) of the Local Government (Rating) Act 2002, at:

 

·      A rate of $83.89 per rating unit located within ‘The Lakes’ subdivision as defined in the Funding Impact Statement.

 

            ‘The Coast Papamoa’ Targeted Rate

 

A uniform targeted rate for additional levels of service in relation to maintenance and renewal of street trees and footpaths provided to ‘The Coast Papamoa’ subdivision, located at Papamoa, set under section 16(3)(b) and 16(4)(a) of the Local Government (Rating) Act 2002, at:

 

·    A rate of $35.21 per rating unit located within ‘The Coast Papamoa’ subdivision as defined in the Funding Impact Statement.

 

            ‘The Excelsa’ Targeted Rate

 

A uniform targeted rate for additional levels of service in relation to maintenance and renewal of street gardens, street trees and up lights under trees provided to ‘The Excelsa’ subdivision, located at Papamoa, set under section 16(3)(b) and 16(4)(a) of the Local Government (Rating) Act 2002, at:

 

·    A rate of $48.20 per rating unit located within ‘The Excelsa’ subdivision as defined in the Funding Impact Statement.

X.   Resilience Rate

A targeted rate for resilience in Water, Wastewater, Stormwater, Transportation and Emergency Management, set under section 16(3)(a) and 16(4) (a) of the Local Government (Rating) Act 2002 at:

 

·      A rate of $0.00002144 in the dollar of capital value on every rateable rating unit in the City.

 

(b)        That all rates (except the water supply volumetric rate set under section 19 and the water supply base rate for metered connections under section 16 of the Local Government (Rating) Act 2002) be payable in two equal instalments due on:

 

·    31August 2020 and

·    28 February 2021.

 

(c)        That all metered water rates will, except as to high users, be invoiced on a quarterly basis dependant on when the water meters are read, in accordance with the table below headed “Due dates and penalty dates for rates for metered water supply”. The due dates will also be specified on the invoice. Rating units, which are considered high users of water (namely having an average consumption more than 5m3 per day) will be invoiced monthly, and these rates will be due on the first Thursday after 23 days following the date of the invoice.

 

(d)        That the Council authorises the addition of penalties to rates that are not paid by the due date, as follows, in accordance with sections 57 and 58 of the Local Government (Rating) Act 2002, and delegates authority to the Manager Finance to apply penalties in accordance with this regime:

 

(i)         a charge of 10% on so much of any rates instalment after 1 July 2020 which is unpaid after the relevant due date (except for the volumetric rate under section 19 and the water supply base rate for metered connections under section 16 of the Local Government (Rating) Act 2002) will be applied on:

 

Instalment due date

Penalty Date

31 August 2020

9 September 2020

28 February 2021

9 March 2021

 

(i)         a charge of 10% on so much of any of the volumetric rate under section 19 and the water supply base rate for metered connections under section 16 of the Local Government (Rating) Act 2002 invoiced after 1 July 2020 and which is unpaid after the due date will be applied on whichever is the next consecutive date following the due date of the invoice to which the penalty applies, being:

 

Water Penalty Date

29 October 2020

4 February 2021

29 April 2021

29 July 2021

 

 

Due dates and penalty dates for rates for metered water supply

Week

Area

Q1 Due date

Q2 Due date

Q3 Due date

Q4 Due date

1

Mt Maunganui North, Omanu, Arataki

27-Aug-20

12-Nov-20

18-Feb-21

20-May-21

2

Mt Maunganui Industrial, Matapihi, Arataki, Te Maunga, Papamoa West

27-Aug-20

19-Nov-20

25-Feb-21

27-May-21

3

Papamoa Beach West / East

3-Sep-20

26-Nov-20

4-Mar-21

3-Jun-21

4

Papamoa Beach East / South, Kairua, Welcome Bay

10-Sep-20

3-Dec-20

11-Mar-21

10-Jun-21

5

Welcome Bay, Hairini, Poike, Maungatapu, Pyes Pa

17-Sep-20

10-Dec-20

18-Mar-21

17-Jun-21

6

Hairini, Maungatapu, Greerton, Yatton Park, Gate Pa, Tauranga South

24-Sep-20

17-Dec-20

25-Mar-21

24-Jun-21

7

Tauranga South / Central, Sulphur Point, Judea

1-Oct-20

24-Dec-20

1-Apr-21

1-Jul-21

8

Avenues, Te Reti, Judea, Brookfield, Otumoetai

8-Oct-20

14-Jan-21

8-Apr-21

8-Jul-21

9

Bellevue, Otumoetai, Matua

15-Oct-20

21-Jan-21

15-Apr-21

15-Jul-21

10

Matua, The Lakes, Bethlehem

22-Oct-20

28-Jan-21

22-Apr-21

22-Jul-21

All including High users

Penalty Added Date

29-Oct-20

4-Feb-21

29-Apr-21

29-Jul-21

 

(e)        Where a ratepayer makes any payment 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 proportionately across all current year rates due.

 

 

Executive Summary

2.      To set rates for the 2020/2021 year in accordance with the Local Government (Rating) Act 2002 and in accordance with the relevant provisions of the Council's Long Term Plan 2018-2028, and the Funding Impact Statement in the 2020/2021 Annual Plan.

Background

3.      The total rates requirement is determined through the Annual Plan.

4.      The total rates increase between the 2019/2020 and 2020/2021 years (excluding water volumetric charges) is 4.7% after adjusting for growth of 1.6%. This is supported by growth in the number of rating units and the increase in capital value.

5.      The median increase for residential ratepayers is 1.1% and the median increase for commercial ratepayers is 10.9%. (includes rating policy change to UAGC and commercial differential on the general rate)

Strategic / Statutory Context

6.      The rates resolution is required to set and assess the rates.

Consultation / Engagement

7.      The community was consulted through the draft annual plan and revised draft annual plan.

Significance

8.      Under the Significance and Engagement Policy 2014, this decision is of high significance due to the quantum involved and its impact on the community.  This decision affects all Ratepayers of Tauranga City. It is a significant funding source ($165 Million rates revenue and estimated $24 Million water volumetric charge revenue for Council).

Next Steps

9.      Rates will be set and assessed for the 2020/2021 rating year.

Attachments

Nil


Ordinary Council Meeting Agenda

30 July 2020

 

10.3       Borrowing Programme 2020-2021

File Number:           A11627618

Author:                    Mohan De Mel, Treasurer

Authoriser:              Paul Davidson, General Manager: Corporate Services

 

Purpose of the Report

1.      This report seeks approval for the Borrowing Programme 2020-2021.

That Council:

(a)        Receive Report  – Borrowing Programme 2020-2021;

(b)        Recommend to Council to approve the Borrowing Resolution for the 2020-2021 financial year:

i.          The borrowing of $200,377,000 (the “Borrowing”).  This Borrowing being made up of:

·    $146,000,000 of new loans approved for the financial year 2020-2021 in the Annual Plan 2020-2021;

·    $54,277,000 of maturing loans during the financial year 2020-2021;

·    That in addition a bank overdraft facility of $100,000 be retained.

ii.         The borrowing is to be secured against the rates revenue of Council under the Debenture Trust Deed.

iii.         That the Council may also fund the capital expenditure programme and its working capital requirements from its cash reserves and other internal / external sources of funds.

(c)        Recommend to Council to approve that authority is delegated to the Chief Executive and the General Manager Corporate Sevices, subject to the Local Government Act 2002 and the Treasury Policy, to:

i.          determine the details and timing of the Borrowing whether in this financial year or in the future and to raise long or short-term loans, whether by one or more bank facilities or other facilities, or by one or more issues of stock, whether by internal funding or external, and whether by wholesale issue or by private placement to habitual investors, to yield a maximum external borrowing identified in (b)(i) above, of $200,377,000 secured under the Debenture Trust Deed as the Chief Executive and General Manager Corporate Services consider appropriate and in accordance with the Council's Treasury Policy; and

ii.         execute all loan and security documentation in relation to the Borrowing on behalf of Council, including any loan and/or credit agreements and stock certificates, investment statement and any other documents which Council may be required to enter into in respect of the borrowing, and to give one or more certificates in respect thereof for the purposes of Section 118 of the Local Government Act in respect of Council's entry into such borrowing security or related documentation.

 

(d)        Recommend to Council to approve that authority is delegated to the General Manager Corporate Services to borrow internally to manage the funding requirements, subject to availability of internal funding and reassign approved borrowings between activities for approved projects.

 

(e)        Recommend to Council to approve that authority is delegated to the General Manager Corporate Services to enter into interest rate risk management transactions with institutions with whom the Council has interest rate risk management documentation in place as and when he considers appropriate, subject to the limits set out in Council's Treasury Policy.

 

 

Executive Summary

2.      Council’s external borrowing (net) is forecast to reach $686 million as at 30 June 2021 as per the Annual Plan 2020-2021.  Intra-year gross debt levels will be higher than closing net debt as at 30 June 2021 due to planned pre-funding of debt maturities.  The borrowing programme allows us to fund the delivery of our capital programme and enables the delivery of our community outcomes.

Background

3.      Council’s total external borrowing requirement is $200,277,000 comprising $146,000,000 of new debt for projects and $54,277,000 of refinancing maturing debt for the year 2020-2021 as per the Annual Plan 2020-2021.  The existing $100,000 overdraft facility to be retained for the Council's day to day cash management.

 

4.      Carry forward projects from Annual Plan 2019-2020 are included in the above borrowing.

 

5.      Borrowing by Council activities is funded from both internal and external funding sources.  Internal funding sources are mainly Reserves and Internal Debt Retirement.

 

6.      The capital programme 2020-2021 excluding non-cash items (vested assets) is $215 million.  This has been reduced by $43 million (Capital Delivery Adjustment) to determine the closing debt as at 30 June 2021 from a cashflow perspective.

 

7.      As per the Annual Plan 2020-2021 external debt (net) is forecast at $686 million for 30 June 2021.  During the year the gross debt level will increase above this figure due to planned pre-funding of debt maturities.

 

Interest Rate Management 

8.      Council is exposed to interest rate fluctuations on existing and future borrowings.  Interest rate risk is minimised by managing floating and fixed interest rate exposures within the Treasury Policy limits framework.

9.      The Council has previously resolved to enter into Master Agreements with various institutions which provide the framework under which risk management transactions are carried out.

 

Form of Borrowing

10.    It is planned to source all external funding requirements from both the Local Government Funding Agency, Housing Infrastructure Fund and the wholesale market.  Both short and long term funding can be sourced from the wholesale market by way of wholesale tender, private placement and/or bank funding.

 

 

 

Bank Facility

11.    Currently Council has a $70 million undrawn bank facility as at 30 June 2020.  This facility is available to be drawn down at short notice to manage short and long term funding requirements.  The facility maturity is 31 October 2024.  This facility is required to ensure compliance with the Treasury Policy.

 

Security

12.       Council’s Treasury Policy states that Council will generally offer security for its borrowing by way of a charge over its rates under the Debenture Trust Deed (Section 5.1.6 Treasury Policy).

 

Purpose of the Loan

13.       The purpose of the loans is to generally finance capital projects and debt repayment as provided in Council’s Annual Plan 2020-2021.

 

Compliance with the Treasury Policy

14.       The Borrowing proposed is consistent with Council’s Treasury Policy.  The Treasury Policy prescribes that net interest expense should not exceed 20% of annual operating revenue and that net external debt should not exceed 300% of the annual operating revenue.  The proposed borrowing will not result in the Council exceeding the above limits.

 

Working Capital for CCO’s

15.       To assist with the smooth financial running of the CCOs, Council provides working capital funding to Bay Venues Limited and BOPLASS.  By the nature of their size and type of businesses, these companies experience “lumpy” cash-flows throughout the year.  It is prudent and cost effective for Council to provide working capital funding.

Strategic / Statutory Context

16.       Council’s external borrowing (net) is forecast to reach $686m as at 30 June 2021 as per the Annual Plan 2020-2021.  The borrowing programme allows us to fund the delivery of our capital programme and enables the delivery of our community outcomes.

Options Analysis

17.       There are no options associated with this report as these resolutions are required to enable the delivery of Council decisions as per the adoption of the Annual Plan 2020-2021, and to satsify the requirements of the Treasury Policy.

Financial Considerations

18.       Council’s external borrowing (net) is forecast to reach $686m as at 30 June 2021 as per the Annual Plan 2020-2021.  The borrowing programme allows us to fund the delivery of our capital programme and enables the delivery of our community outcomes.

Legal Implications / Risks

19.       The Local Government Act 2002 provides the authority to borrow in Section 12.  Borrowing falls within the “full rights, powers and privileges” that a local authority has to undertake any activity, do any act or enter into any transaction for the purpose of performing its role.  The Treasury Policy also requires the approval of all borrowing by Council resolution.

Consultation / Engagement

20.       Annual Plan has been consulted.

Significance

21.       These Borrowing Programme matters are significant.  However, these approvals are a result of prior decision making and allow implimentation of the Annual Plan 2020-2021, which underwent public consultation.  All risk management activities are undertaken in accordance with the Treasury Policy.

Next Steps

22.       Implementation of the Borrowing Programme 2020-2021.

Attachments

Nil


Ordinary Council Meeting Agenda

30 July 2020

 

10.4       Adopt Final 2020/21 Development Contributions Policy

File Number:           A11627578

Author:                    Ana Blackwood, Development Contributions Policy Analyst

Anna Thurnell, Team Leader: Growth, Funding and Policy

Authoriser:              Christine Jones, General Manager: Strategy & Growth

 

Purpose of the Report

1.      To adopt the 2020/21 Development Contributions Policy.

Recommendations

That the Council:

(a)     Adopts the 2020/21 Development Contributions Policy

(b)     Delegates to the General Manager: Strategy and Growth the authority to rectify any minor errors or omissions that are identified in the 2020/21 Development Contributions Policy prior to final publication.

 

Discussion

2.      Council reviews and updates its Development Contributions Policy on an annual basis. In March 2020 the draft Development Contributions Policy (DCP) was adopted by Council and circulated for public consultation.

3.      Impacts of the Covid-19 pandemic and the consequential re-consultation on the Annual Plan has meant that this final version of the DCP is being adopted a month later than what we would usually achieve, but otherwise the consultation process has been relatively similar to previous years.

4.      Council received several submissions on the contents of the Policy and several changes have been made in response to these submissions. There have also been a number of changes to the growth funded capital expenditure budgets as a result of decisions made by Council through the Annual Plan deliberations process.

5.      The proposed new DCP fees for 2020/21 are set out in the Attached full version of the 2020/21 DCP – with a summary being included as attachment A to this report.

6.      The most significant changes to development contribution fees (greater than 1%) compared to what was consulted on in the draft 2020/21 DCP are:

(a)     A 6.7% increase in Citywide development contributions (in dollar terms this is an increase of $670 per 3-bedroom residential dwelling)

(b)     A decrease of 3.6% for fees applicable to development in Wairakei

(c)     An increase of 2% to the development contribution fees for Tauriko

7.      The increase in the citywide development contribution levy of approximately $670 per household or 6.7% is still largely being driven by cost escalations related to the construction of the Te Maunga Wastewater Treatment Plant. Of note is an additional $10million dollar budget approved by Council since the adoption of the draft policy.

8.      Another contributing factor to the increase in citywide costs is that there was an amendment to a Facility Agreement with the Crown, which relates to the Housing Infrastructure Fund. This amendment resulted in the reallocation of the interest benefit from this agreement. Where previously the zero interest loans only reduced capital costs for specific Development Contribution funded projects, it is now being used to reduce the overall interest costs for all Council projects.

9.      Changes to fees for Wairakei and Tauriko are not the result of any major one or two decisions but rather the cumulative impact of a number of relatively smaller changes including capital expenditure updates approved by Council through the deliberations process, updates to costs to reflect final actual completed costs, and updates to cost of capital figures included within the DC charges.

10.    Other than the above budget changes there have been some minor amendments to the contents of the policy as discussed below. 

(a)     Update to Section 1.1 to remove the end date that the policy would be applied to. This has been replaced with a comment that the policy will remain operative until superseded by another Policy adopted by Council. This change is to prevent having to go through the same legal procedure that was required to extend the operative date of the 2019/20 DCP past the 30 June.

(b)     Structure plans have been updated to reflect the current planning progress.

(c)     Boundaries have been updated for the sub-catchments in Wairakei so that boundary now aligns with the boundary of The Boulevard road.

Next Steps

11.    If the policy is adopted by Council with no further changes then staff will prepare the document for public distribution. Hardcopies of the DCP will be distributed to libraries and to stakeholders who request a copy and otherwise a link to the online version will be provided to those involved in the submissions process.

12.    The fees set out in the DCP will become operative on 1 August 2020 and will be applied to any consents which are lodged with Council after that date.

Attachments

1.      Attachment A - Summary of fee changes between years and draft - A11644819

2.      Final 2020/21 DCP - PDF (full version) - A11640970    


Ordinary Council Meeting Agenda

30 July 2020

 

Attachment A.    Summary of 2020/21 Development Contribution Fees and comparisons to previous policies

  2019/20 Final

 2020/21 Draft

 2020/21 Final

Movement compared to final

% Change final to final

Movement draft to final

% change draft to final

Citywide (3 bedroom + fees)

8,538

9,946

10,616

 $ 2,078

24.3%

 $ 670

6.7%

Bethlehem

12,495

12,516

12,551

56

0.4%

 $34

0.3%

Ohauiti

11,334

11,272

11,185

(149)

-1.3%

($ 87)

-0.8%

Papamoa

8,673

8,701

8,729

55

0.6%

 $ 28

0.3%

Pyes Pa

6,750

6,802

6,798

48

0.7%

($ 3)

0.0%

Pyes Pa West

30,758

29,752

29,972

(785)

-2.6%

 $ 220

0.7%

Tauranga

3,568

3,614

3,614

46

1.3%

0.00

0.0%

Tauriko (per hectare)

359,759

378,911

387,117

27,358

7.6%

 $ 8,206

2.2%

Wairakei B (per hectare)

331,678

367,250

353,705

22,026

6.6%

($ 13,545)

-3.7%

Welcome Bay

8,457

8,480

8,498

41

0.5%

 $ 18

0.2%

West Bethlehem (per hectare)

355,476

372,880

372,880

17,403

4.9%

0.00

0.0%

 

 


Ordinary Council Meeting Agenda

30 July 2020

 

10.5       Amendments to the Traffic and Parking Bylaw 2012

File Number:           A11641381

Author:                    Wayne Thompson, Transportation Engineer

Authoriser:              Nic Johansson, General Manager: Infrastructure

 

Purpose of the Report

1.      To obtain approval from Council to introduce amendments to the appropriate Attachments within the Traffic and Parking Bylaw.

2.      These Amendments result following a Council decision to alter on-street parking in the Tauranga City Centre from paid to free parking with a 120-minute maximum restriction, to be reviewed 30 November 2020.  Please note any existing on street restrictions less than 120 minutes shall remain as scheduled as these have been in place and agreed with retailer consultation at that time. These relate to P15, P30 and P60 restrictions in various areas across the City Centre. Existing hours of operation are recommended to be altered from 9.00 am – 3.00 pm Monday–Friday, 9.00 am – 1.00 pm Saturday to 8.00 am – 4.00 pm Monday–Saturday to provide more effective enforcement of time restrictions.

Recommendations

That the Council:

(a)     Receive Amendments to the Traffic and Parking Bylaw 2012 Report.

(b)     Adopt the proposed amendments to the Traffic and Parking Bylaw 2012 Attachment as per Appendix B, effective from 3 August 2020.

 

Executive Summary

3.      The Traffic and Parking Bylaw 2012 includes Attachments each of which lists various traffic and parking restrictions.

4.      Council can amend the Attachments by Council Resolution.

5.      This report sets out Amendments to the following:

(a)     Attachment: 7.13 Pay Areas Time Designation and On Street Hours of Operation

(b)     Attachment: 7.14 Pay Area Spaces and Car Park Buildings On Street Hours of Operation

Background

6.      Council adopted the Traffic and Parking Bylaw 2012 (the ‘Bylaw’) on 23 October 2012 and it came into effect on 1 November 2012. The purpose of the Bylaw is to facilitate traffic management and parking control measures in respect of roads, public places, parking areas and transport stations owned or managed by Council.

7.      Amendments to ‘the Bylaw’ are presented to Council for approval three to four times annually so that any enforcement of parking restrictions can be carried out as required.

Strategic / Statutory Context

8.      The amendments achieve the vision and strategic transport priorities to help make our network safer and easier for people to get around the city.

9.      The amendments have been designed to provide stimulus to support economic recovery of businesses in the city centre.

Options Analysis

10.    Not applicable.

Council agreed at the 16 July 2020 meeting to implement the FREE parking with a 120 Minute Maximum Time Restriction as soon as possible with the issue being reviewed from 30 November 2020. 

Financial Considerations

11.    There will be some very minor additional costs ($1000) to alter parking signs associated with the changes above, but these can be absorbed into existing budgets.

Legal Implications / Risks

12.    The bylaw amendments are needed to allow enforcement of the changes.

Consultation / Engagement

13.    During the Annual Plan deliberations meeting on 16 July it was suggested that the recommended changes to the bylaw would require a period of public consultation.  This is not the case.  The bylaw allows for the recommended changes to be made by simple resolution. 

In terms of the Local Government Act 2002, all decisions require Council to “give consideration to the views and preferences of persons likely to be affected by, or to have an interest in, the matter” (section 78).  How Council complies with this requirement, and the extent to which views are sought, is at the discretion of Council. 

14.    While the reduced parking charges have not been consulted on, the original request (through the Annual Plan process) was made by the organisation representing affected retailers and business owners.  The immediate impact on those parking vehicles is a reduction in charges.  Further consultation is not considered essential in order to inform Council on the likely ‘views and preferences’ of affected and interested persons.

Significance

15.    Under the Significance and Engagement Policy 2014, this decision is of low significance as the proposed amendments are minor changes to the attachments of the Traffic and Parking Bylaw 2012.

Attachments

1.      Attachment  - proposed amendments to the Traffic and Parking Bylaw - A11641451   


Ordinary Council Meeting Agenda

30 July 2020

 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator

 


Ordinary Council Meeting Agenda

30 July 2020

 

11        Discussion of Late Items  


Ordinary Council Meeting Agenda

30 July 2020

 

12        Public Excluded Session  

RESOLUTION TO EXCLUDE THE PUBLIC

Recommendations

That the public be excluded from the following parts of the proceedings of this meeting.

The general subject matter 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 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under section 48 for the passing of this resolution

12.1 - Public Excluded Minutes of the Council Meeting held on 30 June 2020

s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege

s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

s48(1)(a) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

12.2 - 2020 Reappointment of Directors to the Board of Bay Venues Limited

s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons

s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

s48(1)(a) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7