Christchurch City Council

Agenda

 

 

Notice of Meeting:

An ordinary meeting of the Christchurch City Council will be held on:

 

Date:                                    Tuesday 21 June 2022

Time:                                   9.30am

Venue:                                 Council Chambers, Civic Offices,
53 Hereford Street, Christchurch

 

 

Membership

Chairperson

Deputy Chairperson

Members

Mayor Lianne Dalziel

Deputy Mayor Andrew Turner

Councillor Jimmy Chen

Councillor Catherine Chu

Councillor Melanie Coker

Councillor Pauline Cotter

Councillor Mike Davidson

Councillor Celeste Donovan

Councillor Anne Galloway

Councillor James Gough

Councillor Yani Johanson

Councillor Aaron Keown

Councillor Sam MacDonald

Councillor Phil Mauger

Councillor Jake McLellan

Councillor Tim Scandrett

Councillor Sara Templeton

 

 

16 June 2022

 

 

 

Principal Advisor

Dawn Baxendale

Chief Executive

Tel: 941 6996

 

 

Samantha Kelly

Team Leader Hearings & Committee Support

941 6227

samantha.kelly@ccc.govt.nz

www.ccc.govt.nz

Note:  The reports contained within this agenda are for consideration and should not be construed as Council policy unless and until adopted.  If you require further information relating to any reports, please contact the person named on the report.
To watch the meeting live, or a recording after the meeting date, go to:
http://councillive.ccc.govt.nz/live-stream
To view copies of Agendas and Minutes, go to:
https://www.ccc.govt.nz/the-council/meetings-agendas-and-minutes/

 


Council Annual Plan

21 June 2022

 

 

 


Council Annual Plan

21 June 2022

 

TABLE OF CONTENTS

 

1.        Apologies Ngā Whakapāha................................................................................. 4

2.        Declarations of Interest Ngā Whakapuaki Aronga.................................................. 4

Staff Reports

3.        Extending Wheeliebin Kerbside Collection Service in Wairewa................................ 5

4.        Wheeliebin Kerbside Collection Service - Opt Out for Multi-unit Residential Developments....................................................................................................................... 9

5.        Vacant Central City Land Differential and Remission............................................ 13

6.        Policy on Remission and Postponement of Rates on Māori Freehold Land................ 17

7.        Annual Plan 2022/23........................................................................................ 33

8.        Resolution to Exclude the Public...................................................................... 151

 


Council Annual Plan

21 June 2022

 

 

1.   Apologies Ngā Whakapāha

At the close of the agenda no apologies had been received.

2.   Declarations of Interest Ngā Whakapuaki Aronga

Members are reminded of the need to be vigilant and to stand aside from decision making when a conflict arises between their role as an elected representative and any private or other external interest they might have.


Council Annual Plan

21 June 2022

 

 

3.     Extending Wheeliebin Kerbside Collection Service in Wairewa

Reference / Te Tohutoro:

22/739246

Report of / Te Pou Matua:

Andrew Jefferies, Rates Revenue Manager, Andrew.jefferies@ccc.govt.nz

General Manager / Pouwhakarae:

Leah Scales, General Manager Resources

 

 

1.   Brief Summary

1.1       The purpose of this report is to summarise Council's considerations relating to the proposal to expand the wheeliebin kerbside collection service in Wairewa, following submissions on the Draft Annual Plan 2022/23.

2.   Proposal in the Draft Annual Plan 2022/23

2.1       Existing situation: Properties in Little River receive a kerbside collection service for all three bins: rubbish (red), recycling (yellow) and organics (green). The area is also serviced by the Little River recycling drop-off site. Those Little River properties pay the Waste Minimisation Targeted Rate which is $196.45 per house (incl GST) in 2021/22. The targeted rate covers the cost of collecting and processing recycling and organics (yellow and green). The cost of collecting and disposing of rubbish (red bin) is recovered through Council’s general rate, which is based on the capital value of each property.

2.2       Other properties in Wairewa receive a part-service for rubbish and recycling. Properties with a part-service transport their waste to the Birdlings Flat Transfer Station or the Little River recycling point and pay 75% of the Waste Minimisation Targeted Rate – that is $147.34 per house (incl GST) in 2021/22. 

2.3       Change proposed as part of the Draft Annual Plan 2022/23: Council proposed to offer the kerbside service to all properties accessible to our collection vehicle, between Cooptown and Gebbies Valley. These properties will have the option to order three bins, or continue to use the existing facilities. We’re keeping it flexible, as we know through consultation with residents that some people prefer the service they have now.

2.4       However, all developed properties that have the service available will be charged the full Waste Minimisation Targeted Rate. This is consistent with our policy throughout the city. Properties already paying the 75% part rate, will have an increase in annual rates of around $49 (incl GST).

2.5       For those properties on roads our collection trucks can’t access there will be no change in service or charging.

2.6       The proposed expansion to our kerbside collection service will include all properties on the new collection route, shown in the map below:

Figure 1: Proposed additions to kerbside collection routes

 

3.   Submissions on the proposal

3.1       62 submitters provided feedback on our proposed changes to kerbside collection rates. 66% supported the proposal, while 34% opposed.

3.2       Some submitters considered the proposed arrangements would be more convenient than weekly trips to the transfer station.

3.3       There were concerns from some submitters around safety issues of having wheelie bins in settlements that experience regular high wind events.

3.4       Others would like to see the service extended further still.

4.   Staff advice

4.1       Staff recommend that the Council proceed with the extension of kerbside services to Wairewa as proposed in the Draft Annual Plan 2022/23, but with the following modifications:

4.1.1   Bin clips will be offered in Birdlings Flat to address concerns around high winds spreading rubbish;

4.1.2   Service will be extended up Okuti Valley to the road end (the original concerns about truck access have been resolved).

4.2       The recommendations in the paper titled "Annual Plan 2022/23", which is going to the Council - Annual Plan meeting on 21 June 2022, include the adoption of Funding Impact Statement – Rating Information. That sets out the proposed extent of the kerbside service, which determines which properties pay the full differential on the Waste Minimisation Targeted Rate.

5.   Officer Recommendations Ngā Tūtohu

That the Council:

1.         Approves the extension of the Wheeliebin Kerbside Collection Service in Wairewa proposal, including the changes made in response to the submissions, subject to the Funding Impact Statement – Rating Information being adopted as part of the final Annual Plan 2022-23 on 21 June 2022.

 

 

 

 

Attachments / Ngā Tāpirihanga

There are no attachments to this report.

 

In addition to the attached documents, the following background information is available:

Document Name

Location / File Link

Not applicable

 

 

 

 

 

 

Confirmation of Statutory Compliance / Te Whakatūturutanga ā-Ture

Compliance with Statutory Decision-making Requirements (ss 76 - 81 Local Government Act 2002).

(a) This report contains:

(i)  sufficient information about all reasonably practicable options identified and assessed in terms of their advantages and disadvantages; and

(ii) adequate consideration of the views and preferences of affected and interested persons bearing in mind any proposed or previous community engagement.

(b) The information reflects the level of significance of the matters covered by the report, as determined in accordance with the Council's significance and engagement policy.

 

 

 

Signatories / Ngā Kaiwaitohu

Author

Andrew Jefferies - Manager Rates Revenue

Approved By

Bruce Moher - Acting Head of Finance

Leah Scales - General Manager Resources/Chief Financial Officer

  


Council Annual Plan

21 June 2022

 

 

4.     Wheeliebin Kerbside Collection Service - Opt Out for Multi-unit Residential Developments

Reference / Te Tohutoro:

22/738065

Report of / Te Pou Matua:

Andrew Jefferies, Rates Revenue Manager, Andrew.jefferies@ccc.govt.nz

General Manager / Pouwhakarae:

Leah Scales, General Manager Resources

 

 

1.   Brief Summary

1.1       The purpose of this report is to obtain Council agreement to the Wheeliebin Kerbside Collection Service-Opt out for Multi-unit Residential Developments proposal, including changes to the Rates Remission Policy that provide for financial opt-out from funding red bin kerbside collection and disposal costs.

2.   Proposal in the Draft Annual Plan 2022/23

2.1       Existing situation: Our three-bin kerbside collection provides a door-to-door waste service for residents. However, we're aware this service doesn't work for large, multi-unit residential developments, where space to store wheelie bins and have them collected is limited.

2.2       At present, properties may choose not to receive wheelie bins. However, all developed properties pay for our kerbside collection service, whether they use it or not. 

2.3       They pay for the kerbside collection and processing of recycling and organics (yellow and green bins) through the Waste Minimisation Targeted Rate. This rate is set at $196.45 per occupied unit in 2021/22. 

2.4       They pay for the kerbside collection and disposal of rubbish (red bin) through the general rate, which is based on the capital value of each property.

2.5       Change proposed as part of the Draft Annual Plan 2022/23: Some multi-unit residential developments may choose to use a commercial recycling, organics and rubbish collection instead of our kerbside service. Residential developments using an approved alternative service will not pay the Targeted Rate if they:

2.5.1   Complete a waste management plan that meets the objectives of our Waste Minimisation and Management Plan; and

2.5.2   Demonstrate the use of an equivalent three-bin (rubbish, recycling and organics) service through a private contractor. The service must meet the objectives of our Waste Minimisation and Management Plan.

2.6       Multi- unit residential developments (10 or more units) that opt-out of our service won't have to pay the Targeted Rate. However, they will continue funding Council's other waste management activities, including the kerbside collection and disposal of rubbish (red bin), as that is part of the general rate, based on capital value.

2.7       A rates remission would be inserted into Council's Rates Remission Policy to implement the opt-out from the Targeted Rate.

3.   Submissions on the proposal

3.1       73 submitters provided feedback on our proposed changes to kerbside collection rates. 30% supported the proposal while 70% opposed it. Those who indicated that they opposed did not oppose us making changes for multi-unit developments, they just don’t think that they go far enough.

3.2       Submitters would like to see changes enable them to opt out of all kerbside collection costs (not just the Targeted Rate, but also the part of the General Rate that funds red bin kerbside collection and disposal).

4.   Guidance from councillor briefings

4.1       Councillors directed staff to provide a way for multi-unit residential developments to opt out, not only from paying the Targeted Rate, but also from funding the red bin kerbside collection and disposal costs.

5.   Staff advice and modified proposal

5.1       Staff have added a new remission covering the financial opt-out from funding red bin kerbside collection and disposal costs. The new remission will remit $83 of rates for each opt out, representing the average annual kerbside collection and disposal cost for the red bin.

5.2       The following underlined words have been added in the proposed Rates Remission Policy:

Remission 9:  Wheelie bin service reduction

Objective

To provide rates relief from the Waste Minimisation targeted rate for rating units within multi-unit residential developments where the rating unit has opted out of receiving the 3-bin kerbside collection service, and to provide further rates relief to the extent that kerbside collection and disposal costs for refuse are included within the general rate rather than the Waste Minimisation targeted rate.  

Conditions and criteria

This rates remission applies where a rating unit within a multi-unit residential development has, with the approval of Council, opted out of the 3-bin kerbside collection service. Note that opt out will be approved only where alternative arrangements are made for collection of all waste streams, and Council considers those arrangements provide an appropriately equivalent service.

Where the opt out applies for the whole year, the remission will be equal to the Waste Minimisation targeted rate, plus $83 (representing the average annual kerbside collection and disposal cost for the red bin). 

Where the opt out applies for part of the year the Council may, at its discretion, grant a remission calculated based on the proportion of the year to which the opt out applies.

6.   Officer Recommendations Ngā Tūtohu

That the Council:

1.         Approves the Wheeliebin Kerbside Collection Service-Opt out for Multi-unit Residential Developments proposal, including changes to the Rates Remission Policy that provide for financial opt-out from funding red bin kerbside collection and disposal costs, subject to the approval of the Rates Remission Policy which is to be adopted as part of the final Annual Plan 2022-23 on 21 June 2022.

 

 

 

 

Attachments / Ngā Tāpirihanga

There are no attachments for this report.

 

In addition to the attached documents, the following background information is available:

Document Name

Location / File Link

 

 

 

 

 

 

 

Confirmation of Statutory Compliance / Te Whakatūturutanga ā-Ture

Compliance with Statutory Decision-making Requirements (ss 76 - 81 Local Government Act 2002).

(a) This report contains:

(i)  sufficient information about all reasonably practicable options identified and assessed in terms of their advantages and disadvantages; and

(ii) adequate consideration of the views and preferences of affected and interested persons bearing in mind any proposed or previous community engagement.

(b) The information reflects the level of significance of the matters covered by the report, as determined in accordance with the Council's significance and engagement policy.

 

 

 

Signatories / Ngā Kaiwaitohu

Author

Andrew Jefferies - Manager Rates Revenue

Approved By

Bruce Moher - Acting Head of Finance

Leah Scales - General Manager Resources/Chief Financial Officer

  


Council Annual Plan

21 June 2022

 

 

5.     Vacant Central City Land Differential and Remission

Reference / Te Tohutoro:

22/731147

Report of / Te Pou Matua:

Andrew Jefferies, Rates Revenue Manager, andrew.jefferies@ccc.govt.nz

General Manager / Pouwhakarae:

Leah Scales, General Manager Resources

 

 

1.   Brief Summary

1.1       The purpose of this report is to seek Council approval for the Vacant Central City Land Differential and Remission proposal, including the changes made in response to the submissions on the Draft Annual Plan 2022/23.

2.   Proposal in Draft Annual Plan 2022/23

2.1       The proposal published with the Draft Annual Plan 2022/23 contained two parts: a new differential on the value-based general rate, and a new rates remission.

2.2       The purpose of the proposal is to achieve a fairer balance of rates, recognising that vacant land currently pays relatively low rates (since rates are largely based on capital value) yet those owners benefit significantly from Council's activities.

New differential on the value-based general rate

2.3       A new “City Vacant” differential will be introduced, applying to the value-based general rate. It will have a value of 4 (compared with standard differential of 1, and business differential of 1.697).

2.4       It will apply to any rating unit:

2.4.1   which is located within the Central City Business Zone or the Central City Mixed Use (South Frame) Zone in the District Plan; and

2.4.2   where no active or consented use is being made of the land.

2.5       The “active or consented use” criteria means that a property will NOT have the City Vacant differential applied if it is:

2.5.1   developed (has a building on it), or is under development; or

2.5.2   in a temporary use that:

·     is a permitted activity under rules in the District Plan (e.g. used as a support site for adjacent construction); or

·     has an approved and fully implemented resource consent (e.g. open-air carpark).

2.6       If land has a resource consent for use as a carpark, we would not apply the City Vacant differential to that land. We note that the appearance of the land would be able to be managed through consent conditions.

New rates remission

2.7       A new rates remission (Remission 8: Vacant Central City Land) would be available for rating units paying the City Vacant differential. The remission would reduce payable rates to the level the land would have paid on the business differential.

2.8       Land would qualify for the remission if it is kept in an improved and maintained state, consistent with Council’s Vacant Site Improvement Guide (https://ccc.govt.nz/culture-and-community/central-city-christchurch/develop-here/vacant-sites).

Expand the proposal?

2.9       We also invited comments on:

2.9.1   expanding the proposal in future to cover other parts of the city (not just the central city)

2.9.2   whether the Council should investigate options (for FY24 or beyond) for increasing rates on derelict central city buildings.

3.   Submissions on the proposal

3.1       The following table summarises the results of submissions on this issue:

Question

Support

Oppose

Other

A new “City Vacant” differential rate

64%
46

17%
12

18%
13

A new rates remission for vacant land

50%
27

31%
17

18%
10

Wider application of a vacant differential rate

100%
26

 

 

A financial mechanism to encourage/require owners to act in relation to Central City ‘Barrier Sites’

78%
40

16%
8

6%
3

 

3.2       Some submissions raised concern that the proposal was not a lawful use of Council’s rating powers.

3.3       There was strong support for extending the proposal to other parts of the city, and to derelict buildings.

4.   Guidance from councillor briefings

4.1       Lawfulness: Councillors sought reassurance that the proposal is lawful.

4.2       Consent delays: Councillors were concerned that delays in Council’s consenting processes could mean that consent applications (e.g. resource consent for an open-air carpark) are not processed in time for vacant land to avoid the higher City vacant differential. Councillors wanted the proposal to be amended to deal with that situation.

4.3       Derelict buildings: Councillors tested whether it was possible for the proposal to be amended to extend it to derelict buildings from 1 July 2022.

4.4       Extend area: Councillors also tested whether it was possible for the proposal to be amended to extend it to other parts of the city from 1 July 2022.

5.   Staff advice and modified proposal

5.1       Lawfulness: While the proposal appears to be unique in New Zealand (no other councils impose a higher general rate differential on vacant land), staff consider that the proposal is authorised under the Local Government (Rating) Act 2002 and the Local Government Act 2002.

5.2       Consent delays: Staff have added a new remission covering the situation where the owner of vacant land loses the opportunity to avoid the higher City Vacant differential due to delay in Council’s consenting processes. The following words have been added in the Rates Remission Policy, at the end of Remission 8: Vacant Central City Land:

Further remission – consenting delay

Rates may also be remitted where Council considers that Council’s actions or inactions have caused a delay in processing a building or resource consent relating to that land, and where Council considers that, if it had processed the consents in accordance with statutory timeframes, it is reasonable to expect that the land owner could have avoided being assessed for the City Vacant differential. The amount of rates remitted is at Council’s discretion.

5.3       The recommendations in the paper titled “Annual Plan 2022/23”, which is going to the Council – Annual Plan meeting on 21 June 2022, include the adoption of this Rates Remission Policy.

5.4       Clarify “under development”: When defining the term “active or consented use”, the term “under development” is used – see paragraph 0 above. Staff propose to change this term for clarification to read “under construction”. This clarifies that a property that has development plans (e.g. architectural plans) does not have an “active or consented use” unless actual construction work has begun. The paper titled “Annual Plan 2022/23”, which is going to the Council – Annual Plan meeting on 21 June 2022, will adopt the Funding Impact Statement – Rating Information, which includes this amendment.

5.5       Derelict buildings: It is not possible to modify the proposal to cover derelict buildings from 1 July 2022, since we did not consult on a detailed proposal to do that. Staff will carry out further work and report on options for a potential proposal for consultation ahead of the rating year beginning 1 July 2023.

5.6       Extend area: Again, it is not possible to extend the proposal to other areas of the city from 1 July 2022, since we did not consult on a detailed proposal to do that. Staff will carry out further work and report on options for a potential proposal for consultation ahead of the rating year beginning 1 July 2023.

6.   Officer Recommendations Ngā Tūtohu

That the Council:

1.         Approves the Vacant Central City Land Differential and Remission proposal, including the changes made in response to the submissions (remission to deal with consent delays, and clarifying “under development”), subject to the approval of the Rates Remission Policy and the Funding Impact Statement – Rating Information which are to be adopted as part of the final Annual Plan 2022-23 on 21 June 2022;

2.         Direct staff to carry out further work and report on options for extending the Vacant Central City Land proposal to other areas of the city and to derelict buildings, with a view to consultation ahead of the rating year beginning 1 July 2023.

 

 

 

 

Attachments / Ngā Tāpirihanga

There are no attachments for this report.

 

In addition to the attached documents, the following background information is available:

Document Name

Location / File Link

 

 

 

 

 

 

 

Confirmation of Statutory Compliance / Te Whakatūturutanga ā-Ture

Compliance with Statutory Decision-making Requirements (ss 76 - 81 Local Government Act 2002).

(a) This report contains:

(i)  sufficient information about all reasonably practicable options identified and assessed in terms of their advantages and disadvantages; and

(ii) adequate consideration of the views and preferences of affected and interested persons bearing in mind any proposed or previous community engagement.

(b) The information reflects the level of significance of the matters covered by the report, as determined in accordance with the Council's significance and engagement policy.

 

 

 

Signatories / Ngā Kaiwaitohu

Author

Andrew Jefferies - Manager Rates Revenue

Approved By

Bruce Moher - Acting Head of Finance

Leah Scales - General Manager Resources/Chief Financial Officer

  


Council Annual Plan

21 June 2022

 

 

6.     Policy on Remission and Postponement of Rates on Māori Freehold Land

Reference / Te Tohutoro:

22/740088

Report of / Te Pou Matua:

Andrew Jefferies, Rates Revenue Manager, Andrew.jefferies@ccc.govt.nz

General Manager / Pouwhakarae:

Leah Scales, General Manager Resources

 

 

1.   Brief Summary

1.1       The purpose of this report is to adopt a new Policy on Remission and Postponement of Rates on Māori Freehold Land from 1 July 2022, incorporating some changes following submissions on the Draft Annual Plan 2022/23.

2.   Proposal in Draft Annual Plan 2022/23

2.1       Existing Policy: The Council is required to have, and does have, a Policy on Remission and Postponement of Rates on Māori Freehold Land. The current version of the Policy outlines 12 criteria for rates relief. The first of those is that that relief may be provided where "the land is not in use". This has been the most important criteria in practice.

2.2       New legislation: In early 2021 legislation was passed amending the Local Government Act 2002 (LGA) and the Local Government (Rating) Act 2002 (LGRA) to (among other things):

a)        Make unused MFL non-rateable from 1 July 2021

b)        Write off rates arrears on unused MFL from 1 July 2021

c)         Provide that, from 1 July 2022, the Council's MFL Policy must support the principles set out in the Preamble to the Te Ture Whenua Maori Act 1993 (TTWM Act).

2.3       The Council is required to review its existing Policy to ensure it supports the principles set out in the Preamble to the TTWM Act, and to take into account the matters set out in Schedule 11 of the LGA (see below).

2.4       Change proposed as part of the Draft Annual Plan 2022/23: The Council proposed to adopt a new Policy from 1 July 2022. The key changes were:

a)        The proposed Policy explicitly recognises the principles in the Preamble to TTWM Act as objectives of the Policy.

b)        The current Policy applies to Māori Freehold Land and Māori customary land (of which there is none in the Christchurch takiwā). The proposed Policy may also be applied to:

·     a Māori reservation

·     "1967 land" (general land that ceased to be Māori land under Part 1 of the Māori Affairs Amendment Act 1967, where the land is still owned by the descendants of the persons who owned it immediately before it ceased to be Māori land)

·     land returned to iwi or hapū ownership through treaty settlement or a right of first refusal scheme

3.   Submissions on the proposal and staff advice

3.1       10 submitters provided feedback on our rates proposal. 50% supported the proposal, while 50% opposed.

3.2       A submission was received from Mahaanui Kurataiao Limited on behalf of the six Papatipu Rūnanga. Ngā Rūnanga “support the spirit of the Policy but oppose the text of the Policy”. A set of proposed alterations were attached.

3.3       The following table sets out the suggestions made in the submission, along with the way staff propose we address those concerns:

Table 1: Submissions from Mahaanui Kurataiao / Rūnanga and Council Staff Recommendations

Submission

Council Staff Recommendation

(1) Introduction should acknowledge the rangatiratanga of Ngā Rūnanga as tangata whenua, and the Tiriti Partnership between Ngā Rūnanga and Council.

Agreed.

In terms of the Tiriti Partnership, we have used the language from the Relationship Agreement between Christchurch City Council and Ngā Rūnanga (1 Sep 2016)

(2) The introduction should note the Ngāi Tahu Claims Settlement Act 1998 applies to the territory of the Council

Agreed

(3) The Policy objectives should include recognition of the tangata whenua status of Ngāi Tahu Papatipu Rūnanga

Agreed

(4) Include various empowering provisions relating to new legislative provisions (ss 20A, s98A, 62A and 65, LGRA)

Agreed

(5) The Council should not hold sole discretionary decision-making authority in relation to the rating of Māori land. Decisions must be made in full cooperation with, and giving effect to the views of, Ngā Rūnanga. This can be undertaken through Te Hononga Council – Papatipu Rūnanga Committee.

Staff propose to add the following words near the beginning of the Policy

Recognising this Relationship Agreement, the process for making decisions under this policy will be determined by Te Hononga Council – Papatipu Rūnanga Committee (Te Hononga), or an equivalent Committee mechanism, or in the absence of such a process, by Council staff in accordance with Council’s delegations register.

In the section headed “Land to which this policy applies” we would make the following change:

At the sole discretion of Council, this This policy may also apply to the following types of land as if it were Māori freehold land”

During 2022/23, Council staff will prepare the necessary papers for Council and Te Hononga to set up the decision-making process. Note that the Terms of Reference and delegations for Te Hononga will need to be amended – at present Te Hononga can make recommendations to the Council but does not have delegated authority to make formal decisions on behalf of the Council.

(6) Establish a Ngāi Tahu Rates Commission to which Council would transfer rates collected on Māori land. Commission would then reinvest rates collected on infrastructure and development projects. Invite Council to set a hui to discuss.

Council will discuss this further with Mahānui Kurataiao, Ngā Rūnanga and Te Hononga. This issue is separate from the drafting of the Policy on Remission and Postponement of Rates on Māori Freehold Land. No change is required to the Policy.

Staff note that while it is not possible for Council to delegate rate-making powers under the legislation, further discussions could include consideration of alternative ways to achieve the objective. Staff expect that discussions will confirm Council’s commitment to enabling greater participation by mana whenua in decision making especially for those rates for Māori freehold land. Rates on Māori freehold land in 2021/22 were around $80,000 (excluding Environment Canterbury rates and GST, and after being reduced for remissions). Staff will also work with other neighbouring Councils so that there is some consistency for Māori ratepayers and Ngā Rūnanga.

 

3.4       The proposed Policy on Remission and Postponement of Rates on Māori Freehold Land (1 July 2022) is attached as Attachment A. It shows tracked changes from the version published with the Draft Annual Plan 2022/23. It includes changes dealing with issues 1 to 5 above. No change is required for issue 6 because that issue is beyond the scope of the policy.

4.   Schedule 11 considerations

4.1       When determining a new Policy on Remission and Postponement of Rates on Māori Freehold Land, Council must consider the following matters set out in Schedule 11 of the LGA (refer to s108(4) LGA):

a)        the desirability and importance of each of the objectives (see below)

b)        whether, and to what extent those objectives could be prejudicially affected if there is no remission/postponement

c)         whether, and to what extent those objectives are likely to be facilitated by the remission/postponement

d)        the extent to which different criteria and conditions for rates relief may contribute to different objectives.

4.2       The objectives in Schedule 11 are:

a)        supporting the use of the land by the owners for traditional purposes

b)        recognising and supporting the relationship of Māori and their culture and traditions with their ancestral lands

c)         avoiding further alienation of Māori freehold land

d)        facilitating any wish of the owners to develop the land for economic use

e)         recognising and taking account of the presence of waahi tapu that may affect the use of the land for other purposes

f)          recognising and taking account of the importance of the land in providing economic and infrastructure support for marae and associated papakainga housing (whether on the land or elsewhere):

g)        recognising and taking account of the importance of the land for community goals relating to preservation/protection of the natural environment

h)        recognising the level of community services provided to the land and its occupiers

i)          recognising matters related to the physical accessibility of the land.

4.3       An assessment of the Policy against the matters set out in Schedule 11 of the LGA is set out in Attachment B.

5.   Officer Recommendations Ngā Tūtohu

That the Council:

1.         Adopts the Policy on Remission and Postponement of Rates on Māori Freehold Land (1 July 2022) set out in Attachment A, including changes made in response to the submission by Mahaanui Kurataiao Limited/ Ngā Rūnanga, as discussed in this report.

 

 

 

 

Attachments / Ngā Tāpirihanga

No.

Title

Page

a

Policy on Remission and Postponement of Rates on Māori Freehold Land (1 July 2022)

22

b

Analysis Against Schedule 11 (s108(4) Local Government Act 2002)

30

 

 

In addition to the attached documents, the following background information is available:

Document Name

Location / File Link

 

 

 

 

 

 

 

Confirmation of Statutory Compliance / Te Whakatūturutanga ā-Ture

Compliance with Statutory Decision-making Requirements (ss 76 - 81 Local Government Act 2002).

(a) This report contains:

(i)  sufficient information about all reasonably practicable options identified and assessed in terms of their advantages and disadvantages; and

(ii) adequate consideration of the views and preferences of affected and interested persons bearing in mind any proposed or previous community engagement.

(b) The information reflects the level of significance of the matters covered by the report, as determined in accordance with the Council's significance and engagement policy.

 

 

 

Signatories / Ngā Kaiwaitohu

Author

Andrew Jefferies - Manager Rates Revenue

Approved By

Bruce Moher - Acting Head of Finance

Leah Scales - General Manager Resources/Chief Financial Officer

  


Council Annual Plan

21 June 2022

 









Council Annual Plan

21 June 2022

 



Council Annual Plan

21 June 2022

 

 

7.     Annual Plan 2022/23

Reference / Te Tohutoro:

22/716878

Report of / Te Pou Matua:

Peter Ryan, Head of Performance Management, Peter.Ryan@ccc.govt.nz

General Manager / Pouwhakarae:

Lynn McClelland, Assistant Chief Executive, Lynn.McClelland@ccc.govt.nz

 

 

1.   Brief Summary

1.1       The purpose of this report is to present to the Council for consideration and adoption:

1.1.1   an analysis of the submissions and hearings made through the Annual Plan consultation process;

1.1.2   the outcome of the Council’s considerations to date; and

1.1.3   Mayor’s Recommendations for consideration before the Council adopts the Annual Plan 2022/23.

1.2       The Annual Plan process will be reviewed by the Council’s Audit and Risk Management Committee at its meeting on 15 June 2022.

1.3       The Committee’s opinion is provided to the Council in Section 12 of this report as well as a verbal update at the Council meeting.

1.4       The Council is required to prepare and adopt an Annual Plan for each financial year (s.95(1)) Local Government Act 2002).

1.5       The consultation process for adoption of the Annual Plan 2022/23 was undertaken in accordance with the Council’s statutory obligations.

1.6       Following its resolution to adopt the Annual Plan 2022/23, the Council will set and assess rates for the 2022-23 year.

2.   Officer Recommendations Ngā Tūtohu

That the Council:

1.         Receives the information included in this report and attachments;

2.         Notes the recommendations of the Council’s Audit and Risk Management Committee at its meeting on 15 June 2022, that an appropriate process has been followed in the preparation of the information  that provide the basis for this Annual Plan 2022/23;

3.         Adopts the Mayor’s Recommendations set out in Attachment A;

4.         Adopts the summary of the rates impact and net debt ratio impact of the Mayor’s Recommendations set out in Attachment B;

5.         Adopts the proposed changes to the Council’s capital programme for 2022/23 set out in Attachment C;

6.         Adopts the proposed changes to the Council’s operating expenditure for 2022/23 set out in Attachment D;

7.         Adopts the proposed Revenue and Financing Policy set out in Attachment E;

8.         Adopts the proposed Funding Impact Statement – Rating Information set out in Attachment F. Note that the changes from the version published for consultation with the Draft Annual Plan 2022/23 are:

a.         Changing the term “under development” to “under construction” – this is used in the definition of “active or consented use” which is used to identify the land to which the new City Vacant differential will apply. This change is for clarification only, and is discussed in the paper “Vacant Central City Land Differential and Remission” (21 June 2022 Council – Annual Plan meeting);

b.         Removing reference to the Water Supply, Wastewater and Stormwater Bylaw 2014 and instead referring to the Water Supply and Wastewater Bylaw 2022;

c.         Updating the map of the wheeliebin kerbside collection area to include the Okuti Valley, as discussed in the paper “Extending Wheeliebin Kerbside Collection Service in Wairewa” (21 June 2022 Council – Annual Plan meeting);

9.         Adopts the proposed Rates Remission Policy set out in Attachment G. Note that the changes from the version published for consultation with the Draft Annual Plan 2022/23 are:

a.         Providing a new remission to support financial opt-out from funding red bin kerbside collection and disposal costs, as discussed in the paper “Wheeliebin Kerbside Collection Service - Opt Out for Multi-unit Residential Developments” (21 June 2022 Council – Annual Plan meeting);

b.         Providing a new remission covering the situation where the owner of vacant land loses the opportunity to avoid the higher City Vacant differential due to delay in Council’s consenting processes, as discussed in the paper “Vacant Central City Land Differential and Remission” (21 June 2022 Council – Annual Plan meeting);

10.       Adopts the proposed minor changes, errors or omissions for levels of service, set out in Attachment H;

11.       Notes the Thematic Analysis of the Annual Plan 2022/23 Submissions, set out in Attachment I;

12.       Notes the Annual Plan 2022/23 - Management Sign-off for Process set out in Attachment J; and

13.       Notes the Annual Plan 2022/23 - Management Sign-off for Significant Forecasting Assumptions set out in Attachment K.

14.       Adopts the Annual Plan 2022/23 comprising the information and underlying documents adopted by the Council at the meeting dated 24 February 2022 (the draft Annual Plan 2022/23), as amended by resolutions 3-10 above and Attachments C-H.

15.       Authorises the General Manager Resources/Chief Financial Officer to make the amendments required to ensure the published 2022/23 Annual Plan aligns with the Council’s resolutions of 21 June 2022 and to make any other non-material changes that may be required;

16.       Authorises the General Manager Resources/Chief Financial Officer to borrow, in accordance with the Liability Management Policy, sufficient funds to enable the Council to meet its funding requirements as set out in the 2022/23 Annual Plan;

17.       Having set out rates information in the Funding Impact Statement contained in the Annual Plan 2022/23 (adopted by the above resolutions), resolves to set the following rates under the Local Government (Rating) Act 2002 for the 2022-23 financial year, commencing on 1 July 2022 and ending on 30 June 2023 (all statutory references are to the Local Government (Rating) Act 2002).

a.         a uniform annual general charge under section 15(1)(b) of $145.00 (incl. GST) per separately used or inhabited part of a rating unit;

b.         a general rate under sections 13(2)(b) and 14 set differentially based on property type, as follows:

Differential Category

Basis for Liability

Rate Factor (incl. GST) (cents/$ of capital value)

Standard

Capital Value

0.323283

Business

Capital Value

0.548611

Remote Rural

Capital Value

0.242462

City Vacant

Capital Value

1.293131

 

c.         a water supply targeted rate under section 16(3)(b) and 16(4)(b) set differentially depending on whether a property is connected or capable of connection to the on-demand water reticulation system, as follows:

Differential Category

Basis for Liability

Rate Factor (incl. GST) (cents/$ of capital value)

Connected (full charge)

Capital Value

0.077068

Serviceable (half charge)

Capital Value

0.038534

 

d.         a restricted water supply targeted rate under sections 16(3)(b) and 16(4)(a) on all rating units with one or more connections to restricted water supply systems of $390.00 (incl. GST) for each standard level of service received by a rating unit;

e.         a land drainage targeted rate under sections 16(3)(b) and 16(4)(a) on all rating units in the serviced area of 0.047244 cents per dollar of capital value (incl. GST);

f.          a sewerage targeted rate under sections 16(3)(b) and 16(4)(a) on all rating units in the serviced area of 0.091404 cents per dollar of capital value (incl. GST);

g.         a waste minimisation targeted rate under sections 16(3)(b) and 16(4)(b) set differentially depending on whether a full or partial service is provided, as follows:

Differential Category

Basis for Liability

Rate Charge (incl. GST)

Full service

Per separately used or inhabited part of a rating unit

$189.50

Partial service

Per separately used or inhabited part of a rating unit

$142.13

Note:
The full service charge is assessed on every separately used or inhabited part of a rating unit in the serviced area. The partial service charge is assessed on every separately used or inhabited part of a rating unit outside the kerbside collection area, where a limited depot collection service is available (75% of the full rate).

h.         a water supply fire connection targeted rate under sections 16(3)(b) and 16(4)(a) on all rating units receiving the benefit of a water supply fire connection of $125.00 (incl. GST) per connection;

i.          an excess water supply commercial volumetric targeted rate under section 19(2)(a) set for all rating units which receive a commercial water supply as defined in the Water Supply and Wastewater Bylaw 2022, plus land under single ownership on a single certificate of title and used for three or more household residential units, boarding houses, motels, and rest homes of $1.18 (incl. GST) per m3 or any part of a m3 for consumption in excess of the rating unit’s water supply targeted rate allowance, provided that all properties will be entitled to a minimum consumption of 0.6986 cubic metres per day.

The rating unit’s water supply targeted rate allowance in m3 per year is the volume of water equal to the assessed water supply targeted rate divided by $1.18.

For example, if a rating unit is assessed $1,000 for the water supply targeted rate, that rating unit's water supply targeted rate allowance for the year is 847.5m3 ($1000 divided by $1.18/m3), which is 2.32 m3/day. Liability for the excess water supply commercial volumetric targeted rate is for any consumption in excess of that allocation.

j.          an excess water supply residential volumetric targeted rate under section 19(2)(a) set for the following:

·        all metered residential rating units where the meter records usage for a single rating unit;

·        a rating unit where the meter records usage for multiple rating units, and where there is a special agreement in force specifying which rating unit / ratepayer is responsible for payment,

of $1.35 (incl GST) per m3 or any part of a m3 for consumption in excess of 700 litres per day;

k.         an active travel targeted rate under section 16(3)(a) and 16(4)(a) of $20.00 (incl. GST) per separately used or inhabited part of a rating unit;

l.          a heritage targeted rate under section 16(3)(a) and 16(4)(a) on all rating units of 0.000774 cents per dollar of capital value (incl. GST);

m.       a special heritage (Cathedral) targeted rate under section 16(3)(a) and 16(4)(a) of $6.52 (incl. GST) per separately used or inhabited part of a rating unit;

n.         special heritage (Arts Centre) targeted rate under section 16(3)(a) and 16(4)(a) of 0.000609 cents per dollar of capital value (incl. GST);

o.         a Central City Business Association targeted rate under section 16(3)(b) and 16(4)(a) of $339.07 (incl. GST) per business rating unit in the Central City Business Association Area, where the land value of the rating unit is greater than or equal to $50,000;

p.         an Akaroa Health Centre targeted rate under section 16(3)(b) and 16(4)(a) of $35.54 (incl. GST) per separately used or inhabited part of a rating unit, for rating units located in areas defined by the following valuation roll numbers: 23890, 23900, 23910, 23920, 23930, 23940 and 23961 (the eastern portion of Banks Peninsula);

18.       Resolves that all rates except the excess water supply commercial volumetric targeted rate, and the excess water supply residential volumetric targeted rate, are due in four instalments, and set the following due dates for payment:

Instalment

1

2

3

4

Area 1

15 August 2022

15 November 2022

15 February 2023

15 May 2023

Area 2

15 September 2022

15 December 2022

15 March 2023

15 June 2023

Area 3

31 August 2022

30 November 2022

28 February 2023

31 May 2023

 

Where the Instalment Areas are defined geographically in the Map and Table as follows:

 

Area 1

Area 2

Area 3

Includes generally the Central City and the suburbs of St Albans, Merivale, Mairehau, Papanui, Riccarton, Addington, Spreydon, Sydenham, Beckenham, Opawa and Banks Peninsula.

Includes generally the suburbs of Shirley, New Brighton, Linwood, Woolston, Mt Pleasant, Sumner, Cashmere and Heathcote.

Includes generally the suburbs of Belfast, Redwood, Parklands, Harewood, Avonhead, Bishopdale, Ilam, Fendalton, Hornby, Templeton and Halswell.

 

19.       Resolves that excess water supply commercial volumetric targeted rates, and excess water supply residential volumetric targeted rates are due for payment on the dates shown below in the “Due date” column, based on the week in which amounts are invoiced (shown in the “Week beginning” column). The “Penalty date” column will be referred to further below:

Week beginning

Due date

Penalty date

27/06/2022

25/08/2022

30/08/2022

4/07/2022

1/09/2022

6/09/2022

11/07/2022

8/09/2022

13/09/2022

18/07/2022

15/09/2022

20/09/2022

25/07/2022

22/09/2022

27/09/2022

1/08/2022

29/09/2022

4/10/2022

8/08/2022

6/10/2022

11/10/2022

15/08/2022

13/10/2022

18/10/2022

22/08/2022

20/10/2022

25/10/2022

29/08/2022

27/10/2022

1/11/2022

5/09/2022

3/11/2022

8/11/2022

12/09/2022

10/11/2022

15/11/2022

19/09/2022

17/11/2022

22/11/2022

26/09/2022

24/11/2022

29/11/2022

3/10/2022

1/12/2022

6/12/2022

10/10/2022

8/12/2022

13/12/2022

17/10/2022

15/12/2022

20/12/2022

24/10/2022

22/12/2022

27/12/2022

31/10/2022

29/12/2022

3/01/2023

7/11/2022

5/01/2023

10/01/2023

14/11/2022

12/01/2023

17/01/2023

21/11/2022

19/01/2023

24/01/2023

28/11/2022

26/01/2023

31/01/2023

5/12/2022

2/02/2023

7/02/2023

12/12/2022

9/02/2023

14/02/2023

19/12/2022

16/02/2023

21/02/2023

26/12/2022

23/02/2023

28/02/2023

2/01/2023

2/03/2023

7/03/2023

9/01/2023

9/03/2023

14/03/2023

16/01/2023

16/03/2023

21/03/2023

23/01/2023

23/03/2023

28/03/2023

30/01/2023

30/03/2023

4/04/2023

6/02/2023

6/04/2023

11/04/2023

13/02/2023

13/04/2023

18/04/2023

20/02/2023

20/04/2023

25/04/2023

27/02/2023

27/04/2023

2/05/2023

6/03/2023

4/05/2023

9/05/2023

13/03/2023

11/05/2023

16/05/2023

20/03/2023

18/05/2023

23/05/2023

27/03/2023

25/05/2023

30/05/2023

3/04/2023

1/06/2023

6/06/2023

10/04/2023

8/06/2023

13/06/2023

17/04/2023

15/06/2023

20/06/2023

24/04/2023

22/06/2023

27/06/2023

1/05/2023

29/06/2023

4/07/2023

8/05/2023

6/07/2023

11/07/2023

15/05/2023

13/07/2023

18/07/2023

22/05/2023

20/07/2023

25/07/2023

29/05/2023

27/07/2023

1/08/2023

5/06/2023

3/08/2023

8/08/2023

12/06/2023

10/08/2023

15/08/2023

19/06/2023

17/08/2023

22/08/2023

26/06/2023

24/08/2023

29/08/2023

 

 

 

 

20.       Resolves to add the following penalties to unpaid rates:

a.         for the excess water supply commercial volumetric targeted rate, and the excess water supply residential volumetric targeted rate, a penalty of 7 per cent will be added to any portion of an invoiced amount not paid on or by the due date, to be added on the date shown in the "Penalty date" column in the table above, based on the week in which amounts are invoiced;

b.         for all rates except the excess water supply commercial volumetric targeted rate, and the excess water supply residential volumetric targeted rate, a penalty of 7 per cent will be added to any portion of an instalment not paid on or by the due date, to be added on the following dates:

Instalment

1

2

3

4

Area 1

19 August 2022

18 November 2022

18 February 2023

19 May 2023

Area 2

20 September 2022

20 December 2022

18 March 2023

20 June 2023

Area 3

03 September 2022

03 December 2022

03 March 2023

03 June 2023

 

c.         for all rates, an additional penalty of 7 per cent will be added on 01 October 2022 to any rates assessed, and any penalties added, before 1 July 2022 and which remain unpaid on 01 October 2022;

d.         for all rates, a further penalty of 7 per cent will be added if any rates to which a penalty has been added under (c) above remain unpaid on 01 April 2023.

 

3.   Background

3.1       The Long Term Plan (LTP) 2021-31 was approved by Council in June 2021. It followed a comprehensive process that reviewed operational expenditure, levels of service and the capital programme in a highly detailed way.

3.2       The Council is required to prepare and adopt an Annual Plan for each financial year (s.95(1)) Local Government Act 2002).

3.3       The purpose of the plan is to:

3.3.1   contain the proposed annual budget and funding impact statement for 2022/23;

3.3.2   identify any variation from the financial statements and funding impact statement in the Council’s Long Term Plan for 2022/23;

3.3.3   provide integrated decision-making and co-ordination of the Council’s resources; and contribute to the accountability of the Council to the community.

3.4       The information for the Annual Plan 2022/23 has been prepared in accordance with the requirements of the LGA 2002.  The information includes:

3.4.1   the proposed annual budget and funding impact statement for 2022/23;

3.4.2   any variation from the financial statements and funding impact statement included in the Council's 2021-2031 Long Term Plan for 2022/23;

3.4.3   proposed changes to the Council's capital programme for 2022/23 and any changes to the Level of Service provision for activities undertaken by the Council;

3.5       The draft Annual Plan 2022/23 was adopted by the Council on 24 February 2022.

3.6       The Council completed consultation with the community on the draft Annual Plan 2022/23 via a Consultation Document and underlying information adopted on 24 February 2022.

3.7       The Consultation Document and the underlying information were made publicly available and members of the public were given the opportunity to present their views and preferences in response;

3.7.1   Opportunity for members of the public to present at public hearings were available from 4 May to 11 May 2022. 

3.7.2   All submissions, written and oral, have been analysed to identify the matters commented on, the reasons for those comments and the overall themes that emerged from the consultation process;

3.8       The result of this work has been provided to elected members to assist with their deliberations. The Thematic Analysis of the Annual Plan 2022/23 Submissions is Attachment I of this report.

3.9       In the time since the conclusion of the Hearings staff have held numerous briefings with councillors (17, 19, 23, 25 and 31 May 2022), provided responses to issues and questions raised, and received direction on all matters raised. The briefing of 25 May was open to the public.

3.10    Guidance provided by Elected Members and the Mayor’s Recommendations has been built into the Annual Plan 2022/23 adoption documents, including expectations for rates increases.

3.11    Changes made largely reflect community feedback on the Draft Annual Plan or changes to Council’s operating environment since February.

3.12    Having obtained specific guidance from councillors, staff prepared a report and attachments for the Annual Plan 2022/23. The process for preparing information has been the subject of a detailed series of staff sign offs that demonstrate compliance with the Council’s statutory, financial, and legal obligations.

3.13    These signoffs (both management and for significant assumptions used in the Annual Plan) have been reviewed by the Audit and Risk Management Committee. In the opinion of the Committee an appropriate process has been followed in the preparation of this information.

3.14    In response to questions from councillors, staff have provided a wide range of advice and recommendations. Some are not Annual Plan recommendations per se (as they are processes or actions, not budget line items) but those with councillor support will be tracked as action items and their implementation reported back to Council. These requests will be tabled at the Council meeting.

3.15    Examples include the Port Hills Management Plan and increases to Community Arts Funding (both to be considered during the 2024/34 Long Term Plan process) and the Arts Precinct (where staff have been asked to work with the Central City Business Association and Christchurch NZ – as well as submitters - on other activation sites that could be used within the central city, on what would be required and what funds would be needed. Staff held an initial workshop with these and other stakeholder groups on 14 June 2022, to look at the future activation of the Performing Arts Precinct and other available land in the Central City. Further workshops are being planned.)

4.   Financial Overview

Rates

4.1       The recommended Annual Plan includes a rates requirement (excl. GST) to be levied of $625.3 million.

4.2       The proposed average rates increase to all existing ratepayers of 4.56% is lower than the 4.97% forecast in the 2021-31 Long Term Plan and lower than the 4.96% proposed in the Draft Annual Plan. The average house will have a rates increase of $2.60 per week.

4.3       The increases for the average capital value property in the 3 sectors is:           

Residential                  4.55%

Business                       4.25%

Remote Rural             2.66%

4.4       The material drop in the Remote Rural average from 4.41% in the Draft is largely due to a reduced general rate requirement of $5 million.

Operating Expenditure

4.5       Operational expenditure of $537.5 million is $10.0 million above the level forecast in the draft Annual Plan principally due to:

4.5.1   Additional inflation budgeted ($6.9 million),

4.5.2   Burwood Landfill – new consent granted for continued operations until FY24, operating costs added to budget ($2.7 million) (offset by higher revenues),

4.5.3   Insurance premiums increase ($1.4 million),

4.5.4   Additional resourcing costs added to Building Consenting ($1 million) to service higher volumes (offset by higher revenues),

4.5.5   Governors Bay Restoration Trust grant ($0.8 million – borrowed for),

4.5.6   Central City Vacant Land Remissions ($0.7 million) reflecting update to include remissions on sites where a consent is currently in progress,

4.6       These increases are partially offset by an adjustment to the opening date for Parakiore Recreation and Sport Centre ($3.8 million) (partially offset by lower revenues), and South West Leisure Centre ($1.3 million).

4.7       Interest costs are $4.1 million higher than projected in the Draft Annual Plan due to increase in interest rates. Noting that $2.4 million of this relates to onlending to subsidiaries which is recovered.

4.8       Details of all changes are shown in Attachment D.

Revenue

4.9       Total revenue excluding rates of $386.9 million is $37.4 million lower than that included in the Draft Annual Plan. The main revenue changes are:

4.9.1   Delayed Crown funding for the Te Kaha/Canterbury Multi Use Arena ($47.3 million), due to re-timing of the projected spend.

4.9.2   Reduced revenue of $1.7 million due to an adjustment to the opening date for Parakiore Recreation and Sport Centre.

4.9.3   Reduced parking revenues ($0.7 million) due to return to pre Covid levels taking longer than expected.

Partially offset by,

4.9.4   Burwood Landfill – new consent granted for continued operations until FY24 ($5.8 million),

4.9.5   Higher interest revenues of $5.1 million, due to increased interest rates ($2.4 million offset by subsidiaries onlending costs),

4.9.6   Higher Building Consenting revenues ($1 million).

Surplus, operating deficits, and sustainability

4.10    The recommended Annual Plan for 2022/23 shows an accounting surplus of $323.8 million before revaluations. Under accounting standards the Council is required to show all revenue, including recoveries from central Government and NZ Transport Agency, as income for the year. However, some of these recoveries reimburse the Council for capital expenditure. After adjusting for these capital revenues, the Council is forecasting a balanced budget for 2022/23.

Capital programme expenditure

4.11    The capital programme has been reviewed with heavy focus on deliverability and affordability, to ensure ratepayers are not levied in advance of funds being required. Details of proposed changes from Draft Annual Plan 2022/23 are shown in Attachment C. Key factors taken into account when considering deliverability were:

·   Covid-19

·   Supply chain issues

·   Cost escalation

·   Human resource availability (internal and external), and

·   The Governments current reform programme (3 Waters, Future of Local Government, RMA)

4.12    The Council plans to invest $578.3 million in the capital programme in 2022/23, a decrease of $37.2 million from the Draft Annual Plan.

4.13    Decreased spend planned in 2022/23 compared to the Draft Annual Plan includes:

·   Revised timing of spend on Te Kaha ($47.3 million),

·   Rephased timing of Ōtākaro-Avon River Corridor ($2.5 million) from 2022/23 to 2026/27,

·   Rephased Performing Arts Precinct spend ($2.4 million) from 2022/23 to 2023/24,

·   The Square and Surrounds ($2 million) rephased from 2022/23 to 2023/24 and 2024/25,

·   Hornby Development Contributions ($1.8 million) rephased from 2022/23 to 2023/24.

4.14    Increased spending in 2022/23 compared to the Draft Annual Plan relates to provision for an estimated $20 million of 2021/22 works expected to be carried forward to 2022/23, with a further $105 million moving to later years.

4.15    Other key changes from the Draft Annual Plan that do not impact 2022/23 include:

·   Additional funding for Halswell Junction Road Extension ($5.5 million) budgeted in 2023/24.

·   Budget for remediation of Barry’s Bay Landfill included in 2023/24 ($1.8 million).

Capital programme funding

4.16    The capital programme is funded by subsidies and grants for capital expenditure, development contributions, proceeds from asset sales, rates and debt. In 2022/23 we will rate for $164.6 million of renewals which is consistent with our Financial Strategy.

 

 

Borrowing

4.17    The recommended Annual Plan includes new borrowing in 2022/23 of $177.5 million, a decrease of $60.9 million from the Draft Annual Plan, reflecting funds on hand due to lower capital delivery in 2021/22. Gross debt at 30 June 2023 is expected to be $2.26 billion, $169 million lower than the Draft Annual Plan as a result of lower capital delivery in 2021/22, and CCHL refinancing $50 million of debt directly.

4.18    In accordance with our financial strategy we will continue to ensure prudent and sustainable financial management of our operations and will not borrow beyond our ability to service and repay that borrowing.

5.   Significant Assumptions

5.1       Significant assumptions were reviewed and there is no significant change from the Draft Annual Plan other than a rise in interest rates and an increased risk around inflation, despite an additional 1% provision provided for operating costs.

6.   Financial Risk Management Strategy

6.1       The Council’s policies to assist in managing its financial risk, including liquidity and funding risk management, interest rate exposure and counterparty credit risk are unchanged. An important element in assessing the value of the Council’s risk management strategy is its five key financial ratios (two net debt, two interest and one liquidity). These key ratios are all expected to be met in 2022/23.

6.2       While all Financial Prudence benchmarks were met in the Draft, the Debt Servicing benchmark (borrowing costs as a percentage of revenue being less than 10%) is now not forecast to be met for 2022/23. It is forecast at 10.2%, resulting from significant increases in interest rates since February. It is expected to peak in 2024/25 at 11.3%. In the LTP this benchmark was expected to be breached in 2026/27 – 2028/29. It should be noted that some of the interest cost relates to borrowing for onlending to CCO’s, which in turn generates offsetting interest revenue that the ratio doesn’t account for. There is no concern around the ability to service the debt.

7.   Fees and Charges

7.1       Other than several minor wording corrections/clarifications, the only proposed change from the previously published Draft Annual Plan 2022/23 is to reduce Library book hold fees from $3 to $2.

8.   Changes to Levels of Service

8.1       There are three minor changes to levels of service proposed from the Draft Annual Plan 2022/23, each with accompanying rationale. These are attached in Attachment H.

9.   Changes to Revenue, Financing and Rating Policies

9.1       There are three policies proposed to be changed (that is, changed from the policies currently in place for the 2021/22 financial year).

9.2       The Revenue and Financing Policy is the same as proposed for the Draft Annual Plan 2022/23. It provides support for the proposed general rate differential on vacant land within the central city, and the enables provision for financial contributions in the future. The proposed Revenue and Financing Policy is attached in Attachment E.

9.3       The Rates Remission Policy changes (compared with the Draft Annual Plan 2022/23) are described in two papers on the agenda for the 21 June 2022 Council – Annual Plan meeting:

·   Vacant Central City Land Differential and Remission

·   Wheeliebin Kerbside Collection Service - Opt Out for Multi-unit Residential Developments

The proposed Rates Remission Policy is attached in Attachment G.

9.4       The changes to the Policy on Remission and Postponement of Rates on Māori Freehold Land  (compared with the Draft Annual Plan 2022/23) are described in a paper on the agenda for the 21 June 2022 Council – Annual Plan meeting called “Policy on Remission and Postponement of Rates on Māori Freehold Land”.

10. Annual Plan Process

10.1    The Council is required to prepare and adopt an Annual Plan for each financial year (s.95(1)) Local Government Act 2002).

10.2    The purpose of the plan is to:

10.2.1 contain the proposed annual budget and funding impact statement for 2022/23;

10.2.2 identify any variation from the financial statements and funding impact statement in the Council’s Long Term Plan for 2022/23;

10.2.3 provide integrated decision-making and co-ordination of the Council’s resources; and contribute to the accountability of the Council to the community.

10.3    The information for the Annual Plan 2022/23 has been prepared in accordance with the requirements of the LGA 2002.  The information includes:

10.3.1 the proposed annual budget and funding impact statement for 2022/23;

10.3.2 any variation from the financial statements and funding impact statement included in the Council's 2021-2031 Long Term Plan for 2022/23;

10.3.3 proposed changes to the Council's capital programme for 2022/23 and any changes to the Level of Service provision for activities undertaken by the Council;

10.3.4 revised schedule of significant assumptions.

10.4    The information has been prepared in accordance with the principles and procedures that apply to the preparation of the financial statements and funding impact statement included in the 2021-2031 Long Term Plan. It contains appropriate references to the provisions in the LTP which set out the Council's activities for the 2022/23 year.

10.5    The information also complies with the requirements set out in Part 2 of Schedule 10 of the LGA 2002 in respect of the information to be included in an Annual Plan.

10.6    Following adoption the final Annual Plan document will be published and distributed via the public web site, with a select number of hard copies made available to elected members, for public viewing through our libraries and service centres, and to the Parliamentary Library. Responses to submitters will be prepared and sent, and the responses to submissions and Thematic Analysis will be also published to the public site.

11. Consultation

11.1    The draft Annual Plan 2022/23 was adopted by the Council on 24 February 2022.

11.2    The Council completed consultation with the community on the draft Annual Plan 2022/23 via a Consultation Document and underlying information adopted on 24 February 2022.

11.2.1 The Consultation Document and the underlying information were made publicly available and members of the public were given the opportunity to present their views and preferences in response;

11.2.2 Opportunity for members of the public to present at public hearings were available from 4 May to 11 May 2022. 

11.2.3 All submissions, written and oral, have been analysed to identify the matters commented on, the reasons for those comments and the overall themes that emerged from the consultation process;

11.2.4 The result of this work has been provided to elected members to assist with their deliberations. The Thematic Analysis of the Annual Plan 2022/23 Submissions is Attachment I of this report. The Thematic Analysis provides a summary of key issues identified by a significant number of submitters. The first part of the report provides an overview of the key themes and messages that have come through in submissions (including for four special topic consultations that were run in parallel with the Annual Plan). The latter part of the report provides detailed submissions analysis for some of the issues that were most popular with submitters. Also included is a breakdown of the number of submissions received, by Community Board, age and gender.

11.3          In the time since the conclusion of the Hearings staff have held numerous briefings with councillors (17, 19, 23, 25 and 31 May 2022), provided responses to issues and questions raised, and received direction on all matters raised. The briefing of 25 May was open to the public.

11.4          Guidance provided by Elected Members and the Mayor’s Recommendations has been built into the Annual Plan 2022/23 adoption documents, including expectations for rates increases.

11.5          Changes made largely reflect community feedback on the raft Annual Plan or changes to Council’s operating environment since February.

12. Audit and Risk Management Committee

12.1    Council’s Audit and Risk Management Committee met on 15 June 2022 in respect of the information that provides the basis for the 2022/23 Annual Plan. The Committee resolved the following:

That the Audit and Risk Management Committee:

1.      Notes it has reviewed the general checklist and sign-off by management, including significant forecasting assumptions, in respect of the information that provides the basis for the Annual Plan 2022/23.

2.      Advises the Council that in the Committee’s opinion an appropriate process has been followed in the preparation of this information.

13. External Audit

Note that Annual Plans are not subject to formal audit by Audit New Zealand.

 

Attachments / Ngā Tāpirihanga

No.

Title

Page

a

Mayor’s Recommendations

48

b

Summary of the rates impact and net debt ratio impact of the Mayor’s Recommendations

53

c

Proposed changes to the Council’s capital programme

54

d

Proposed changes to the Council’s operating expenditure

55

e

Revenue and Financing Policy

56

f

Funding Impact Statement - Rating Information

83

g

Rates Remission Policy

98

h

Minor changes, errors or omissions - Levels of Service

103

i

Thematic Analysis of the Annual Plan 2022/23 Submissions

109

j

Annual Plan 2022/23 - Management Sign-off for Process

124

k

Annual Plan 2022/23 - Management Sign-off for Significant Forecasting Assumptions

134

l  

Mayor's Recommendation (Under Separate Cover) - Confidential

 

 

 

In addition to the attached documents, the following background information is available:

Document Name

Location / File Link

Draft Annual Plan 2022/23

Draft Annual Plan 2022/23 : Christchurch City Council (ccc.govt.nz) 

Consultation Document for Annual Plan 2022/23

Consultation document : Christchurch City Council (ccc.govt.nz)

Long-term Plan 2021-31

Long-term Plan 2021-31 : Christchurch City Council (ccc.govt.nz)

 

 

 

Confirmation of Statutory Compliance / Te Whakatūturutanga ā-Ture

Compliance with Statutory Decision-making Requirements (ss 76 - 81 Local Government Act 2002).

(a) This report contains:

(i)  sufficient information about all reasonably practicable options identified and assessed in terms of their advantages and disadvantages; and

(ii) adequate consideration of the views and preferences of affected and interested persons bearing in mind any proposed or previous community engagement.

(b) The information reflects the level of significance of the matters covered by the report, as determined in accordance with the Council's significance and engagement policy.

 

 

 

Signatories / Ngā Kaiwaitohu

Authors

Boyd Kedzlie - Senior Business Analyst

Bruce Moher - Acting Head of Finance

Ryan McLachlan - Reporting Accountant

Approved By

Peter Ryan - Head of Performance Management

Helen White - Head of Legal & Democratic Services

Leah Scales - General Manager Resources/Chief Financial Officer

Lynn McClelland - Assistant Chief Executive Strategic Policy and Performance

  


Council Annual Plan

21 June 2022

 






Council Annual Plan

21 June 2022

 


Council Annual Plan

21 June 2022

 


Council Annual Plan

21 June 2022

 


Council Annual Plan

21 June 2022

 




























Council Annual Plan

21 June 2022

 
















Council Annual Plan

21 June 2022

 






Council Annual Plan

21 June 2022

 







Council Annual Plan

21 June 2022

 
















Council Annual Plan

21 June 2022

 











Council Annual Plan

21 June 2022

 

















 


Council Annual Plan

21 June 2022

 

 

8.      Resolution to Exclude the Public

Section 48, Local Government Official Information and Meetings Act 1987.

 

I move that the public be excluded from the following parts of the proceedings of this meeting, namely items listed overleaf.

 

Reason for passing this resolution: good reason to withhold exists under section 7.

Specific grounds under section 48(1) for the passing of this resolution: Section 48(1)(a)

 

Note

 

Section 48(4) of the Local Government Official Information and Meetings Act 1987 provides as follows:

 

“(4)     Every resolution to exclude the public shall be put at a time when the meeting is open to the public, and the text of that resolution (or copies thereof):

 

             (a)       Shall be available to any member of the public who is present; and

             (b)       Shall form part of the minutes of the local authority.”

 

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by Section 6 or Section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public are as follows:


Council - Annual Plan

21 June 2022

 

 

 

ITEM NO.

GENERAL SUBJECT OF EACH MATTER TO BE CONSIDERED

SECTION

SUBCLAUSE AND REASON UNDER THE ACT

PLAIN ENGLISH REASON

WHEN REPORTS CAN BE RELEASED

7.

Annual Plan 2022/23

 

 

 

 

 

Attachment l - Mayor's Recommendation

s7(2)(h), s7(2)(i)

Commercial Activities, Conduct Negotiations

The release of this information would compromise the negotiations of tender.

Following the award of construction tender.