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.
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 ⇩
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 ⇩
