AGENDA

 

Strategy, Finance and Risk Committee Meeting

Wednesday, 8 June 2022

I hereby give notice that a Strategy, Finance and Risk Committee Meeting will be held on:

Date:

Wednesday, 8 June 2022

Time:

3pm

Location:

BoP Regional Council Chambers

Regional House

1 Elizabeth 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 – Strategy, Finance & Risk Committee

 

 

Membership

Chairperson

Commission Chair Anne Tolley

Deputy chairperson

Dr Wayne Beilby – Tangata Whenua representative

Members

Commissioner Shadrach Rolleston

Commissioner Stephen Selwood

Commissioner Bill Wasley

 

Matire Duncan, Te Rangapū Mana Whenua o Tauranga Moana Chairperson

Te Pio Kawe         –   Tangata Whenua representative

Rohario Murray    –   Tangata Whenua representative

Bruce Robertson  –   External appointee with finance and risk experience

Quorum

Five (5) members must be physically present, and at least three (3) commissioners and two (2) externally appointed members must be present.

Meeting frequency

Six weekly

 

Role

The role of the Strategy, Finance and Risk Committee (the Committee) is:

(a)        to assist and advise the Council in discharging its responsibility and ownership of health and safety, risk management, internal control, financial management practices, frameworks and processes to ensure these are robust and appropriate to safeguard the Council's staff and its financial and non-financial assets;

(b)        to consider strategic issues facing the city and develop a pathway for the future;

(c)        to monitor progress on achievement of desired strategic outcomes;

(d)        to review and determine the policy and bylaw framework that will assist in achieving the strategic priorities and outcomes for the Tauranga City Council.

Membership

The Committee will consist of:

·            four commissioners with the Commission Chair appointed as the Chairperson of the Committee

·            the Chairperson of Te Rangapū Mana Whenua o Tauranga Moana

·            three tangata whenua representatives (recommended by Te Rangapū Mana Whenua o Tauranga Moana and appointed by Council)

·            an independent external person with finance and risk experience appointed by the Council.

 

Voting Rights

The tangata whenua representatives and the independent external person have voting rights as do the Commissioners.

The Chairperson of Te Rangapu Mana Whenua o Tauranga Moana is an advisory position, without voting rights, designed to ensure mana whenua discussions are connected to the committee.

Committee's Scope and Responsibilities

A.  STRATEGIC ISSUES

The Committee will consider strategic issues, options, community impact and explore opportunities for achieving outcomes through a partnership approach.

A1 – Strategic Issues

The Committee's responsibilities with regard to Strategic Issues are:

·            Adopt an annual work programme of significant strategic issues and projects to be addressed. The work programme will be reviewed on a six-monthly basis.

·            In respect of each issue/project on the work programme, and any additional matters as determined by the Committee:

      Consider existing and future strategic context

      Consider opportunities and possible options

      Determine preferred direction and pathway forward and recommend to Council for inclusion into strategies, statutory documents (including City Plan) and plans.

·            Consider and approve changes to service delivery arrangements arising from the service delivery reviews required under Local Government Act 2002 that are referred to the Committee by the Chief Executive.

·            To take appropriate account of the principles of the Treaty of Waitangi.

A2 – Policy and Bylaws

The Committee's responsibilities with regard to Policy and Bylaws are:

·            Develop, review and approve bylaws to be publicly consulted on, hear and deliberate on any submissions and recommend to Council the adoption of the final bylaw. (The Committee will recommend the adoption of a bylaw to the Council as the Council cannot delegate to a Committee the adoption of a bylaw.)

·            Develop, review and approve policies including the ability to publicly consult, hear and deliberate on and adopt policies.

A3 – Monitoring of Strategic Outcomes and Long Term Plan and Annual Plan

The Committee's responsibilities with regard to monitoring of strategic outcomes and Long Term Plan and Annual Plan are:

·            Reviewing and reporting on outcomes and action progress against the approved strategic direction. Determine any required review / refresh of strategic direction or action pathway.

·            Reviewing and assessing progress in each of the six (6) key investment proposal areas within the 2021-2031 Long Term Plan.

·            Reviewing the achievement of financial and non-financial performance measures against the approved Long Term Plan and Annual Plans.

B. FINANCE AND RISK

The Committee will review the effectiveness of the following to ensure these are robust and appropriate to safeguard the Council's financial and non-financial assets:

·            Health and safety.

·            Risk management.

·            Significant projects and programmes of work focussing on the appropriate management of risk.

·            Internal and external audit and assurance.

·            Fraud, integrity and investigations.

·            Monitoring of compliance with laws and regulations.

·            Oversight of preparation of the Annual Report and other external financial reports required by statute.

·            Oversee the relationship with the Council’s Investment Advisors and Fund Managers.

·            Oversee the relationship between the Council and its external auditor.

·            Review the quarterly financial and non-financial reports to the Council.

B1 - Health and Safety

The Committee’s responsibilities through regard to health and safety are:

·            Reviewing the effectiveness of the health and safety policies and processes to ensure a healthy and safe workspace for representatives, staff, contractors, visitors and the public.

·            Assisting the Commissioners to discharge their statutory roles as "Officers" in terms of the Health and Safety at Work Act 2015.

B2 - Risk Management

The Committee's responsibilities with regard to risk management are:

·            Review, approve and monitor the implementation of the Risk Management Policy, Framework and Strategy including the Corporate Risk Register.

·            Review and approve the Council’s "risk appetite" statement.

·            Review the effectiveness of risk management and internal control systems including all material financial, operational, compliance and other material controls. This includes legislative compliance, significant projects and programmes of work, and significant procurement.

·            Review risk management reports identifying new and/or emerging risks and any subsequent changes to the "Tier One" register.

B3 - Internal Audit

The Committee’s responsibilities with regard to the Internal Audit are:

·            Review and approve the Internal Audit Charter to confirm the authority, independence and scope of the Internal Audit function. The Internal Audit Charter may be reviewed at other times and as required.

·            Review and approve annually and monitor the implementation of the Internal Audit Plan.

·            Review the co-ordination between the risk and internal audit functions, including the integration of the Council's risk profile with the Internal Audit programme. This includes assurance over all material financial, operational, compliance and other material controls. This includes legislative compliance (including Health and Safety), significant projects and programmes of work and significant procurement.

·            Review the reports of the Internal Audit functions dealing with findings, conclusions and recommendations.

·            Review and monitor management’s responsiveness to the findings and recommendations and enquire into the reasons that any recommendation is not acted upon.

B4 - External Audit

The Committee's responsibilities with regard to the External Audit are:

·            Review with the external auditor, before the audit commences, the areas of audit focus and audit plan.

·            Review with the external auditors, representations required by commissioners and senior management, including representations as to the fraud and integrity control environment.

·            Recommend adoption of external accountability documents (LTP and annual report) to the Council.

·            Review the external auditors, management letter and management responses and inquire into reasons for any recommendations not acted upon.

·            Where required, the Chair may ask a senior representative of the Office of the Auditor General (OAG) to attend the Committee meetings to discuss the OAG's plans, findings and other matters of mutual interest.

·            Recommend to the Office of the Auditor General the decision either to publicly tender the external audit or to continue with the existing provider for a further three-year term.

B5 - Fraud and Integrity

The Committee's responsibilities with regard to Fraud and Integrity are:

·            Review and provide advice on the Fraud Prevention and Management Policy.

·            Review, adopt and monitor the Protected Disclosures Policy.

·            Review and monitor policy and process to manage conflicts of interest amongst commissioners, tangata whenua representatives,  external representatives appointed to council committees or advisory boards, management, staff, consultants and contractors.

·            Review reports from Internal Audit, external audit and management related to protected disclosures, ethics, bribery and fraud related incidents.

·            Review and monitor policy and processes to manage responsibilities under the Local Government Official Information and Meetings Act 1987 and the Privacy Act 2020 and any actions from the Office of the Ombudsman's report.

B6 - Statutory Reporting

The Committee's responsibilities with regard to Statutory Reporting relate to reviewing and monitoring the integrity of the Annual Report and recommending to the Council for adoption the statutory financial statements and any other formal announcements relating to the Council's financial performance, focusing particularly on:

·            Compliance with, and the appropriate application of, relevant accounting policies, practices and accounting standards.

·            Compliance with applicable legal requirements relevant to statutory reporting.

·            The consistency of application of accounting policies, across reporting periods.

·            Changes to accounting policies and practices that may affect the way that accounts are presented.

·            Any decisions involving significant judgement, estimation or uncertainty.

·            The extent to which financial statements are affected by any unusual transactions and the manner in which they are disclosed.

·            The disclosure of contingent liabilities and contingent assets.

·            The basis for the adoption of the going concern assumption.

·            Significant adjustments resulting from the audit.

Power to Act

·            To make all decisions necessary to fulfil the role, scope and responsibilities of the Committee subject to the limitations imposed.

·            To establish sub-committees, working parties and forums as required.

·            This Committee has not been delegated any responsibilities, duties or powers that the Local Government Act 2002, or any other Act, expressly provides the Council may not delegate. For the avoidance of doubt, this Committee has not been delegated the power to:

o               make a rate;

o               make a bylaw;

o               borrow money, or purchase or dispose of assets, other than in accordance with the Long-Term Plan (LTP);

o               adopt the LTP or Annual Plan;

o               adopt the Annual Report;

o               adopt any policies required to be adopted and consulted on in association with the LTP or developed for the purpose of the local governance statement;

o               adopt a remuneration and employment policy;

o               appoint a chief executive.

Power to Recommend

To Council and/or any standing committee as it deems appropriate.

 

 


Strategy, Finance and Risk Committee Meeting Agenda

8 June 2022

 

Order of Business

1         Opening karakia. 11

2         Apologies. 11

3         Public forum.. 11

4         Acceptance of late items. 11

5         Confidential business to be transferred into the open. 11

6         Change to order of business. 11

7         Declaration of conflicts of interest 11

8         Business. 12

8.1           Hearing of submissions on the draft Rates Postponement Policy and the draft Rates Remission Policy. 12

8.2           Hearing of submissions on the draft Remission and Postponement of Rates on Māori Freehold Land Policy. 22

9         Discussion of late items. 33

10       Closing karakia. 33

 

Strategy Finance And Risk Committee Meeting

Submission Hearing Schedule

Wednesday 8 June 2022

Rates Remission And Postponement Policies

Time

Submission Number

Name

Organisation

3:00 PM

6

Rob Paterson

3:15 PM

3

George Marriott

 

3:20 PM

4

Keith Catran

 

3:25 PM

6

Lara Burkhardt

Ngā Pōtiki ā Tamapahore Trust

3:30 PM

7

Tui Priest (not confirmed)

 

3.40 PM

2

Ian Stevenson (to be confirmed

 

 

 

 


1          Opening karakia

2          Apologies

3          Public forum 

4          Acceptance of late items

5          Confidential business to be transferred into the open

6          Change to order of business

7          Declaration of conflicts of interest


Strategy, Finance and Risk Committee Meeting Agenda

8 June 2022

 

8          Business

8.1         Hearing of submissions on the draft Rates Postponement Policy and the draft Rates Remission Policy

File Number:           A13501256

Author:                    Emma Joyce, Policy Analyst

Authoriser:              Christine Jones, General Manager: Strategy & Growth

 

Purpose of the Report

1.       To hear submissions on the draft Rates Remission Policy and the draft Rates Postponement Policy (draft policies).

Recommendations

That the Strategy, Finance and Risk Committee:

(a)     Receive the verbal submissions on the draft Rates Remission Policy and the draft Rates Postponement Policy.

(b)     Receive the written submissions on the draft Rates Remission Policy and the draft Rates Postponement Policy.

 

 

Executive Summary

2.       The Strategy, Finance and Risk Committee (the committee) adopted the draft policies for consultation at its March 2022 meeting. Submissions were invited from 27 April to 18 May 2022. A total of nine submissions were received on the draft Rates Postponement Policy with five requesting to be heard (attachment one). A total of five submissions were received on the draft Rates Remission Policy with one requesting to be heard (attachment two).

3.       This report provides an opportunity to hear submissions from those people who indicated they wish to be heard.

Background

4.       In general, all ratepayers are expected to pay rates. However, rates postponement and remission policies allow Council to recognise financial or other special circumstances where ratepayers may require support to manage their rates payments. In adopting the Long-term Plan 2021-2031 (LTP) and in response to public feedback, Commissioners requested a review of council policies on the remission and postponement of rates, particularly for those on fixed incomes.

5.       Recent legislative changes also require councils to review their policies on rates remission and postponement to confirm they support the principles in the Preamble to Te Ture Whenua Māori Act 1993 (TTWMA 93).

6.       At its March 2022 meeting, the Committee adopted a draft Rates Remission Policy that proposed a temporary remission of rates for gold kiwifruit orchards. This remission is to ease the transition to the new rating valuation of such orchards and reflect a recent decision that the rating of gold kiwifruit orchards should not include the value of the G3 license.

7.       Feedback was sought on the following changes to the draft Rates Postponement Policy:

·    Requiring applicants for rates postponement on the ground of financial hardship to show evidence that they cannot access support from private sector financial institutions and have at least 25% equity in the property. Council will support applicants to access the Government rates rebate scheme prior to seeking postponement

·    Noting that applications can only be for the property the ratepayer is currently residing in.

8.       The draft Rates Postponement Policy also proposed extending the postponement available for farmland to properties recently moved into the Tauranga area and will likely be rezoned from rural to urban uses in the future.

9.       A total of 14 submissions were received on both draft policies. The table below lists submitters who wish to be heard, noting that one submitter (Rob Paterson) will speak on both draft policies.

Submission number

Draft Policy

Submitter name

2

Rates Postponement Policy

Ian Stevenson

1

Rates Remission Policy

6

Rates Postponement Policy

Rob Paterson

3

Rates Remission Policy

3

Rates Postponement Policy

George Marriott

4

Rates Postponement Policy

Keith Catran

7

Rates Postponement Policy

Tui Priest

Strategic / Statutory Context

10.     Section 102 of the Local Government Act 2002 allows councils to adopt policies on the remission and postponement of rates. Where councils have adopted such policies, they must be reviewed prior to 1 July 2024 to confirm that they support the principles in TTWMA 93.

Financial Considerations

11.     There are no financial considerations arising from the recommendations in this report.

Legal Implications / Risks

12.     There are no legal implications arising from the recommendations in this report.

13.     While we await the decision of the High Court on including the value of the G3 license in the rating valuation, the proposed remission will have the same effect as if the value was not included. If the Gisborne Land Valuation Tribunal decision is upheld, the rating valuations will be corrected and the provisions in the draft Rates Remissions Policy will not need to take effect.  

Consultation / Engagement

14.     A total of 14 submissions on the draft policies were received during the consultation period from 27 April to 18 May 2022. The consultation was advertised on the Council website and through social media.

15.     An advertisement was placed in the Weekend Sun on 6 May 2022 advising people of the review of the draft policies.

16.     Staff sent letters to the owners of affected gold kiwifruit orchards and contacted both Zespri and the New Zealand Kiwifruit Growers Incorporated (NZKGI) in respect of the rates remission for orchards with the G3 licenses and planted vines. NZKGI provided a letter from their lawyers in response. This has been circulated to the committee separately as it is not considered a submission to the draft Rates Remission Policy.

Significance

17.     The Local Government Act 2002 requires an assessment of the significance of matters, issues, proposals and decisions in this report against Council’s Significance and Engagement Policy.  Council acknowledges that in some instances a matter, issue, proposal or decision may have a high degree of importance to individuals, groups, or agencies affected by the report.

18.     In making this assessment, consideration has been given to the likely impact, and likely consequences for:

(a)   the current and future social, economic, environmental, or cultural well-being of the district or region

(b)   any persons who are likely to be particularly affected by, or interested in, the decision.

(c)   the capacity of the local authority to perform its role, and the financial and other costs of doing so.

19.     In accordance with the considerations above, criteria and thresholds in the policy, it is considered that the decision is of low significance. While the hearing of submissions on the draft policy is of low significance, the adoption of the draft policies is of medium significance.

ENGAGEMENT

20.     Taking into consideration the above assessment, that the decision is of low significance, officers are of the opinion that no further engagement is required prior to Council making a decision.

Next Steps

21.     Deliberations on the matters raised in submissions will take place at the next Committee meeting (20 June 2022) prior to the adoption of a final policy. The draft policies must be adopted by 1 July 2022.

Attachments

1.       Submissions on draft Rates Postponement Policy - A13502523

2.       Submissions on draft Rates Remission Policy - A13528902   


Strategy, Finance and Risk Committee Meeting Agenda

8 June 2022

 

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Strategy, Finance and Risk Committee Meeting Agenda

8 June 2022

 

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Strategy, Finance and Risk Committee Meeting Agenda

8 June 2022

 

8.2         Hearing of submissions on the draft Remission and Postponement of Rates on Māori Freehold Land Policy

File Number:           A13501371

Author:                    Emma Joyce, Policy Analyst

Authoriser:              Christine Jones, General Manager: Strategy & Growth

 

Purpose of the Report

1.       To hear submissions on the draft Remission and Postponement of Rates on Māori Freehold Land Policy (draft policy).

Recommendations

That the Strategy, Finance and Risk Committee:

(a)     Receive the verbal submissions on the draft Remission and Postponement of Rates on Māori Freehold Land Policy.

(b)     Receive the written submissions on the draft Remission and Postponement of Rates on Māori Freehold Land Policy.

 

 

Executive Summary

2.       The Strategy, Finance and Risk Committee (the committee) adopted the draft policy at its March 2022 meeting. Submissions were invited from 27 April to 18 May 2022. A total of six submissions were received (attachment one) with three requesting to be heard in support of their submission.

3.       This report provides an opportunity to hear submissions from those people who indicated

Background

4.       Council is required to review its policy on the remission and postponement of rates on Māori freehold land by 1 July 2022 in response to the Local Government (Rating of Whenua Māori) Amendment Act 2021. This Act introduced provisions to the Local Government (Rating) Act (LG(R)A 02) and Local Government Act 2002 (LGA 02) to better enable development of Māori freehold land, particularly for housing and papakāinga, and to modernise rating legislation affecting Māori freehold land.

5.       Policies on the remission and postponement of rates on Māori freehold land must now also support the principles in the Preamble to Te Ture Whenua Māori Act 1993. These principles remind us of the special significance of land to Māori and the need to provide for its development for the benefit of the owners, their whānau and hapū.

6.       At its March 2022 meeting, the Committee adopted a draft policy that emphasised the potential outcomes and benefits of developing Māori freehold land both for the owners and their whanau and the wider Tauranga community. In particular, the draft policy:

·    References the Preamble to Te Ture Whenua Māori Act in the policy purpose

·    Provides for decisions on remission to be based on the potential outcomes of development rather than fixed criteria

·    Provides for the remission of the portion of rates attributed to the land’s subdivision potential recognising that the value of the land to the owners may not be in its subdivision potential

·    Provides for remission of rates on land with limited productive use.

7.       A total of six submissions were received. The table below lists submitters who wish to be heard

Submission number

Submitter name

3

Ian Stevenson

4

Rob Paterson

6

Lara Burkhardt (on behalf of Ngā Pōtiki ā Tamapahore Trust)

Strategic / Statutory Context

8.       A policy on the remission and postponement of rates on Māori freehold land is a requirement of all councils under section 102(1) of the LGA 02 (noting that councils do not have to offer remission or postponement of rates). Policies must include the objectives sought by remission, and the criteria in order for rates to be remitted. The objectives and criteria must have regard to the “desirability and importance” of a range of objectives such as protection of indigenous biodiversity, protection of wāhi tapu, and avoiding further alienation of land. These criteria are listed at schedule 11 to LGA 02 – Matters relating to the relief of rates on Māori freehold land.  This is in addition to the recent requirement noted in the above background section that policies support the principles contained within the Preamble to TTWMA 93.

9.       Council has previously shown support for the development of Māori land through the development of a policy to provide grants to cover payment of development contributions for papakāinga.

Financial Considerations

10.     There are no financial considerations arising from the recommended option to hear submissions.

Legal Implications / Risks

11.     There are no legal implications arising from the recommended option.

Consultation / Engagement

12.     A total of six submissions on the draft policy were received during the consultation period from 27 April to 18 May 2022. The consultation was advertised on the Council website and through social media.

13.     Staff also contacted owners of Māori freehold land to advise of the consultation period.

14.     The draft policy (as consulted) had been discussed with Te Rangapū and circulated to landowners prior to consultation.

Significance

15.     The Local Government Act 2002 requires an assessment of the significance of matters, issues, proposals and decisions in this report against Council’s Significance and Engagement Policy.  Council acknowledges that in some instances a matter, issue, proposal or decision may have a high degree of importance to individuals, groups, or agencies affected by the report.

16.     In making this assessment, consideration has been given to the likely impact, and likely consequences for:

(a)   the current and future social, economic, environmental, or cultural well-being of the district or region

(b)   any persons who are likely to be particularly affected by, or interested in, the decision.

(c)   the capacity of the local authority to perform its role, and the financial and other costs of doing so.

17.     In accordance with the considerations above, criteria and thresholds in the policy, it is considered that the decision is of low significance. However, the decision to adopt a revised policy is of medium significance.

ENGAGEMENT

18.     Taking into consideration the above assessment, that the decision is of low significance, officers are of the opinion that no further engagement is required prior to Council making a decision.

Next Steps

19.     Deliberations on the matters raised in submissions will take place at the next Strategy, Finance and Risk Committee (20 June 2022) prior to the adoption of a final policy. A final policy must be adopted by 1 July 2022.

Attachments

1.       Submissions on Draft Remission and Postponement of Rates on Maori Freehold Land Policy - A13501006   


Strategy, Finance and Risk Committee Meeting Agenda

8 June 2022

 

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Strategy, Finance and Risk Committee Meeting Agenda

8 June 2022

 

9          Discussion of late items

 

10        Closing karakia