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Council Annual Plan
27 June 2023
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3. Annual
Plan 2023/24
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Reference / Te Tohutoro:
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23/469000
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Report of / Te Pou Matua:
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Peter
Ryan, Head of Corporate Planning and Performance, (Peter.Ryan@ccc.govt.nz)
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General Manager / Pouwhakarae:
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Lynn
McClelland, Assistant Chief Executive Strategic Policy and Performance
(lynn.mcclelland@ccc.govt.nz)
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1. Nature of Decision or Issue and Report Origin
1.1 The purpose of this report is to present to Council for
consideration and adoption:
- an analysis of the submissions and hearings made through the Annual Plan
consultation process;
- the outcome of the Council’s considerations to date; and
- Mayor’s Recommendations for consideration before the Council adopts the
Annual Plan 2023/24, and
- the Annual Plan 2023/24, including any attached documents.
1.2 The Council is required to prepare and adopt an Annual Plan
for each financial year (s.95(1)) Local Government Act 2002).
The purpose of the plan is to:
- contain the annual budget and funding impact statement for 2023/24;
- identify any variation from the financial statements and funding impact
statement in the Council’s Long Term Plan for 2023/24;
- provide integrated decision-making and co-ordination of the Council’s
resources; and contribute to the accountability of the Council to the
community.
1.3 The
decisions in this report are of low significance in relation to the
Christchurch City Council’s Significance and Engagement Policy.
2. Officer Recommendations Ngā
Tūtohu
That the Council
Annual Plan:
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 20 June
2023, that an appropriate process has been followed in the preparation of the
information that provides the basis for this Annual Plan 2023/24;
3. Adopts the Mayor’s Recommendations set
out in Attachment A;
4. Adopts the summary of the financial, rates,
and benchmark impacts including proposed operational changes for 2023/24 set
out in Attachment B;
5. Adopts the proposed changes to the
Council’s capital programme for 2023/24 set out in Attachment C;
6. Adopts the proposed Funding Impact Statement
– Rating Information set out in Attachment D.
7. Notes the Thematic Analysis of the Annual Plan
2023/24 Submissions, set out in Attachment E;
8. Notes the Annual Plan 2023/24 - Management
Sign-off for Process set out in Attachment F; and
9. Notes the Annual Plan 2023/24 - Management
Sign-off for Significant Forecasting Assumptions set out in Attachment G.
10. Adopts the Annual Plan 2023/24 comprising the
information and underlying documents adopted by the Council at the meeting
dated 28 February 2023 (the draft Annual Plan 2023/24), as amended by
resolutions 3-6 above and Attachments B-D.
11. Authorises the General Manager Resources/Chief
Financial Officer to make the amendments required to ensure the published 2023/24
Annual Plan aligns with the Council’s resolutions of 27 June 2023 and to
make any other non-material changes that may be required;
12. 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 2023/24 Annual Plan.
13. Having set out rates information in the
Funding Impact Statement – Rating Information contained in the Annual
Plan 2023/24 (adopted as Attachment D by the above resolutions),
resolves to set the following rates under the Local Government (Rating) Act
2002 for the 2023-24 financial year, commencing on 1 July 2023 and ending on 30
June 2024 (all statutory references are to the Local Government (Rating) Act
2002).
a. a uniform
annual general charge under section 15(1)(b) of $153.00 (incl. GST) per
separately used or inhabited part of a rating unit;
b. a general
rate under sections 13(2)(b) and 14 set differentially based on property
type, as follows:
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Differential
Category
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Basis for
Liability
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Rate Factor
(incl. GST) (cents/$ of capital value)
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Standard
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Capital
Value
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0.211685
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Business
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Capital
Value
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0.469940
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Remote
Rural
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Capital
Value
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0.158763
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City Vacant
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Capital
Value
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0.957449
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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:
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Differential
Category
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Basis for
Liability
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Rate Factor
(incl. GST) (cents/$ of capital value)
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Connected
(full charge)
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Capital
Value
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0.067836
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Serviceable
(half charge)
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Capital
Value
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0.033918
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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 0.035731 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 0.075347 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:
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Differential
Category
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Basis for Liability
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Rate Charge
(incl. GST)
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Full
service
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Per separately used or
inhabited part of a rating unit
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$184.75
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Partial
service
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Per separately used or
inhabited part of a rating unit
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$138.56
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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 $1.35 (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
$1.35.
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 740.7m3 ($1000
divided by $1.35/m3), which is 2.03 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 900 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 0.001886 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. a special
heritage (Arts Centre) targeted rate under section 16(3)(a) and
16(4)(a) of 0.000416 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 $392.36 (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 $90,000;
14. Notes that business differential on the
value-based general rate has changed from 1.697 in 2022/23 to 2.22 in 2023/24.
Similarly, the City Vacant differential has increased from 4 in 2022/23 to
4.523 in 2023/24.
15. 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:
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Instalment
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1
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2
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3
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4
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Area 1
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15 August
2023
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15 November
2023
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15 February
2024
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15 May 2024
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Area 2
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15
September 2023
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15 December
2023
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15 March
2024
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15 June
2024
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Area 3
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31 August
2023
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30 November
2023
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28 February
2024
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31 May 2024
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Where
the Instalment Areas are defined geographically in the Map and Table as
follows:
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Area 1
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Area 2
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Area 3
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Includes generally the
Central City and the suburbs of St Albans, Merivale, Mairehau, Papanui,
Riccarton, Addington, Spreydon, Sydenham, Beckenham, Opawa and Banks
Peninsula.
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Includes generally the
suburbs of Shirley, New Brighton, Linwood, Woolston, Mt Pleasant, Sumner,
Cashmere and Heathcote.
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Includes generally the
suburbs of Belfast, Redwood, Parklands, Harewood, Avonhead, Bishopdale, Ilam,
Fendalton, Hornby, Templeton and Halswell.
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16. 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:
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Week beginning
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Due date
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Penalty date
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3/07/2023
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31/08/2023
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5/09/2023
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10/07/2023
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7/09/2023
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12/09/2023
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17/07/2023
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14/09/2023
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19/09/2023
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24/07/2023
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21/09/2023
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26/09/2023
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31/07/2023
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28/09/2023
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3/10/2023
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7/08/2023
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5/10/2023
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10/10/2023
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14/08/2023
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12/10/2023
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17/10/2023
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21/08/2023
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19/10/2023
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24/10/2023
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28/08/2023
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26/10/2023
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31/10/2023
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4/09/2023
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2/11/2023
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7/11/2023
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11/09/2023
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9/11/2023
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14/11/2023
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18/09/2023
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16/11/2023
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21/11/2023
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25/09/2023
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23/11/2023
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28/11/2023
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2/10/2023
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30/11/2023
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5/12/2023
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9/10/2023
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7/12/2023
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12/12/2023
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16/10/2023
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14/12/2023
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19/12/2023
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23/10/2023
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21/12/2023
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26/12/2023
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30/10/2023
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28/12/2023
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2/01/2024
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6/11/2023
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4/01/2024
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9/01/2024
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13/11/2023
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11/01/2024
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16/01/2024
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20/11/2023
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18/01/2024
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23/01/2024
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27/11/2023
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25/01/2024
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30/01/2024
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4/12/2023
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1/02/2024
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6/02/2024
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11/12/2023
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8/02/2024
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13/02/2024
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18/12/2023
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15/02/2024
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20/02/2024
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25/12/2023
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22/02/2024
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27/02/2024
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1/01/2024
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29/02/2024
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5/03/2024
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8/01/2024
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7/03/2024
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12/03/2024
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15/01/2024
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14/03/2024
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19/03/2024
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22/01/2024
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21/03/2024
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26/03/2024
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29/01/2024
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28/03/2024
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2/04/2024
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5/02/2024
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4/04/2024
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9/04/2024
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12/02/2024
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11/04/2024
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16/04/2024
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19/02/2024
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18/04/2024
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23/04/2024
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26/02/2024
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25/04/2024
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30/04/2024
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4/03/2024
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2/05/2024
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7/05/2024
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11/03/2024
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9/05/2024
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14/05/2024
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18/03/2024
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16/05/2024
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21/05/2024
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25/03/2024
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23/05/2024
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28/05/2024
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1/04/2024
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30/05/2024
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4/06/2024
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8/04/2024
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6/06/2024
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11/06/2024
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15/04/2024
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13/06/2024
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18/06/2024
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22/04/2024
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20/06/2024
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25/06/2024
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29/04/2024
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27/06/2024
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2/07/2024
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6/05/2024
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4/07/2024
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9/07/2024
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13/05/2024
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11/07/2024
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16/07/2024
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20/05/2024
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18/07/2024
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23/07/2024
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27/05/2024
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25/07/2024
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30/07/2024
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3/06/2024
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1/08/2024
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6/08/2024
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10/06/2024
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8/08/2024
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13/08/2024
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17/06/2024
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15/08/2024
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20/08/2024
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24/06/2024
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22/08/2024
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27/08/2024
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17. 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 10 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 10 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:
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Instalment
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1
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2
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3
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4
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Area 1
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18 August
2023
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21 November
2023
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20 February
2024
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20 May 2024
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Area 2
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20
September 2023
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20 December
2023
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20 March
2024
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20 June
2024
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Area 3
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5 September
2023
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5 December
2023
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4 March
2024
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6 June 2024
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c. for all rates, an additional penalty of 10 per
cent will be added on 1 October 2023 to any rates assessed, and any penalties
added, before 1 July 2023 and which remain unpaid on 1 October 2023;
d. for all rates, a further penalty of 10 per
cent will be added if any rates to which a penalty has been added under (c)
above remain unpaid on 1 April 2024.
3. Reason for Report Recommendations Ngā Take mō te
Whakatau
3.1 All
Councils in New Zealand are required to have an approved Long Term Plan in
place at all times, or an LTP updated by an Annual Plan.
3.2 This
Annual Plan was prepared after extensive consultation with our community as
well as briefings with Council – see section 6 ‘Background’
for details.
4. Alternative Options Considered Ētahi atu Kōwhiringa
4.1 N/A.
5. Detail Te Whakamahuki
5.1 The Council is required to prepare and adopt an Annual Plan for each
financial year (s.95(1)) Local Government Act 2002).
5.2 The decision affects the following wards/Community Board areas:
5.2.1 All
wards and Community Board areas.
6. Background
6.1 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.
6.2 The
Council is required to prepare and adopt an Annual Plan for each financial year
(s.95(1)) Local Government Act 2002).
6.3 The
purpose of the plan is to:
6.3.1 contain
the proposed annual budget and funding impact statement for 2023/24;
6.3.2 identify
any variation from the financial statements and funding impact statement in the
Council’s Long Term Plan for 2023/24;
6.3.3 provide
integrated decision-making and co-ordination of the Council’s resources;
and contribute to the accountability of the Council to the community.
6.4 The
information for the Annual Plan 2023/24 has been prepared in accordance with
the requirements of the LGA 2002. The information includes:
6.4.1 the
proposed annual budget and funding impact statement for 2023/24;
6.4.2 any
variation from the financial statements and funding impact statement included
in the Council's 2021-2031 Long Term Plan for 2023/24;
6.4.3 proposed
changes to the Council's capital programme for 2023/24 and any changes to the
Level of Service provision for activities undertaken by the Council;
6.5 The
draft Annual Plan 2023/24 was adopted by the Council on 28 February 2023.
6.6 The
Council completed consultation with the community on the draft Annual Plan
2023/24 via a Consultation document and underlying information adopted on 28
February 2023.
6.7 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;
6.7.1 Opportunity
for members of the public to present at public hearings was available from 27
April to 4 May 2023;
6.7.2 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.
6.8 The
result of this work has been provided to elected members to assist with their
deliberations. The Thematic Analysis of the Annual Plan 2023/24 Submissions is Attachment
E of this report.
6.9 In
the time since the conclusion of the Hearings staff have held numerous
briefings with councillors (15, 24, 30 May, 1 and 6 June 2023), provided
responses to issues and questions raised, and received direction on all matters
raised. The briefing of 1 June was open to the public.
6.10 Guidance
provided by Elected Members and the Mayor’s Recommendations has been
built into the Annual Plan 2023/24 adoption documents, including expectations
for rates increases.
6.11 Changes
made largely reflect community feedback on the Draft Annual Plan or changes to
Council’s operating environment since February.
6.12 Having
obtained specific guidance from councillors, staff prepared a report and
attachments for the Annual Plan 2023/24. 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.
6.13 These
signoffs (both management process 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.
6.14 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.
7. Financial Overview
Rates
7.1 The
recommended Annual Plan includes a rates requirement (excl. GST) to be levied
of $679.2 million.
7.2 The
proposed average rates increase to all existing ratepayers of 6.33% is higher
than the 5.42% forecast in the 2021-31 Long Term Plan and higher than the 5.68%
proposed in the Draft Annual Plan. The average house will have a rates increase
of $3.97 per week.
7.3 The
increases for the average capital value property in the 3 sectors is:
Residential 6.52%
Business 5.61%
Remote Rural -0.60%
7.4 The
material drop in the Remote Rural average from 0.69% in the Draft is largely
due to a reduced general rate requirement of $5.6 million.
Operating Expenditure
7.5 Operational
expenditure of $605.8 million is $20.6 million above the level forecast in the
draft Annual Plan principally due to:
7.5.1 Additional
projects funded from the Crowns Better Off funding package ($7.6 million),
7.5.2 Water
Supply chlorination and other operational and maintenance costs ($4.9 million),
7.5.3 Personnel
costs ($4.6 million),
7.5.4 Costs
relating to the living wage announcement ($3.9 million), and other notified
contract increases ($0.6 million),
7.5.5 Lower
Consenting costs reflecting forecast volume reduction ($1.4 million).
7.6 Interest
costs are $4.7 million higher than projected in the Draft Annual Plan largely
due to updated interest rates relating to onlending to subsidiaries which is
recovered ($2.6 million), the retiming of Te Kaha borrowing ($2.6 million), and
a reduction from reassessing the projected opening debt position ($1
million).
7.7 Details
of all changes are shown in Attachment B, Financial changes from the
Draft Annual Plan.
Revenue
7.8 Total
revenue excluding rates of $479.9 million is $20.3 million higher than that
included in the Draft Annual Plan. The main revenue changes are:
7.8.1 Additional
Crown project funding ($10.5 million) substantially related to the Better Off
funding package,
7.8.2 Additional
subvention receipts available ($10 million),
7.8.3 Higher
interest revenues of $3.4 million, due to increased interest rates and higher
opening onlending to CCHL,
7.8.4 Additional
Waka Kotahi operational revenue mainly from CERF projects ($1.2 million),
Partially
offset by,
7.8.5 Lower
Waka Kotahi capital revenues ($3.2 million),
7.8.6 Reduced
commercial excess water and trade waste revenue ($1.9 million),
7.8.7 Lower
forecast consenting volumes ($1.7 million).
Surplus, operating
deficits, and sustainability
7.9 The
recommended Annual Plan for 2023/24 shows an accounting surplus of $118.1 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 2023/24.
Capital programme expenditure
7.10 The capital programme has been
reviewed with heavy focus on deliverability, to ensure ratepayers are not
levied in advance of funds being required. Details of proposed changes from
Draft Annual Plan 2023/24 are shown in Attachment C. Key factors taken
into account when considering deliverability were:
· Labour demands and resultant shortages (internal
and external),
· Ongoing supply chain issues,
· Cost escalation pressures.
7.11 The Council plans to invest a total
of $746.4 million in the capital programme in 2023/24, an increase of $130.5
million from the Draft Annual Plan.
7.12 Increased spend planned in 2023/24
compared to the Draft Annual Plan includes the following (refer Attachment C
for the full list):
· Revised timing of spend on
Te Kaha (+$127.0 million),
· Additional Council funding
to support the changes for the Coastal Pathway (+$1.4 million),
· Rephasing of Akaroa Wharf
Redevelopment to reflect design, consenting and procurement (-$4.3 million),
· Rephasing of the
Canterbury Provincial Chambers Stage 1 allowance (-$1.5 million),
· The Grassmere Housing
Development Infrastructure Acceleration Funding from Central Government (total
$30.9million) requires a net positive investment in horizontal infrastructure
(+$1.8million),
· The Better Off Funding
from Central Government (total $11.75 million for capital expenditure over 4
years) provides investment in Parks and Community (+$0.9million).
· Revised timing of spend on
Matatiki: Hornby Community Centre reflecting good progress (+$4.6 million).
This includes funding of $450,000 from Better Off Funding Initiative provided
by Central Government,
· The Tsunami Warning System
is rephased to provide time to continue to work on the technical solution
before implementation (-$0.7 million),
· The Takapūneke
Reserve has been allocated additional funds (+$0.5 million).
7.13 Other
key changes from the Draft Annual Plan that do not impact 2023/24 include
change requests and drawdowns completed under staff delegations and reported to
Council on a quarterly basis. These have a net zero impact on 2023/24.
Capital programme
funding
7.14 The
capital programme is funded by subsidies and grants for capital expenditure,
development contributions, proceeds from asset sales, rates and debt. In
2023/24 we will rate for $192.7 million of renewals which is consistent with
our Financial Strategy.
Borrowing
7.15 The
recommended Annual Plan includes net new borrowing in 2023/24 of $293.9
million, an increase of $114.9 million from the Draft Annual Plan, reflecting
the advanced spend timing in relation to Te Kaha. Gross debt at 30 June 2023 is
expected to be $2.66 billion, $125 million higher than the Draft Annual Plan
due to Te Kaha.
7.16 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.
8. Significant Assumptions
8.1 Significant
assumptions were reviewed and there is no significant change from the Draft
Annual Plan. A number have been rewritten for improved clarity of risk.
9. Financial Risk Management Strategy
9.1 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
2023/24.
9.2 The
two Financial Prudence benchmarks not expected to be met in the Draft Annual
Plan remain so. They are the Rates Affordability benchmark and the Debt
Servicing benchmark.
9.3 The
Rates Affordability benchmark measures the notional year on year increase in
rates. For 2023/24 it is 8.4%, up from 7.8% in the Draft, and compared to the
LTP benchmark of 7.2% (which was based on the projected LTP notional increase
of 6.2% plus 1% variation). Significantly higher inflation and interest costs
compared to the 2.3% inflation and 2.4% new borrowing cost incorporated in the
LTP have largely caused the higher increase.
9.4 The
Debt Servicing benchmark (borrowing costs as a percentage of revenue being less
than 10%) is not forecast to be met for 2023/24. It is forecast at 11.2%,
resulting from significant increases in interest rates since February 2022 and
additional borrowing for on-lending to subsidiaries. In the LTP this benchmark
was expected to be breached in 2026/27 – 2028/29. Approximately one third
of the interest cost relates to on-lending to subsidiaries which generates offsetting
interest revenue that the ratio doesn’t consider. Without this cost the
ratio is well below the 10% benchmark. There is no concern around the ability
to service the debt.
10. Fees and Charges
10.1 There
are a number of minor wording corrections/clarifications from the Draft Annual
Plan schedule.
11. Changes to Levels of Service
11.1 There
are no additional changes to levels of service other than those adopted with
the Draft Annual Plan 2023/24.
12. Annual Plan Process
12.1 The
Council is required to prepare and adopt an Annual Plan for each financial year
(s.95(1)) Local Government Act 2002).
12.2 The
purpose of the plan is to:
12.2.1 contain the
proposed annual budget and funding impact statement for 2023/24;
12.2.2 identify any
variation from the financial statements and funding impact statement in the
Council’s Long Term Plan for the financial year 2023/24;
12.2.3 provide
integrated decision-making and co-ordination of the Council’s resources;
and contribute to the accountability of the Council to the community.
12.3 The
information for the Annual Plan 2023/24 has been prepared in accordance with
the requirements of the LGA 2002. The information includes:
12.3.1 the proposed
annual budget and funding impact statement for 2023/24;
12.3.2 any variation
from the financial statements and funding impact statement included in the
Council's 2021-2031 Long Term Plan for 2023/24;
12.3.3 proposed
changes to the Council's capital programme for 2023/24 and any changes to the
Level of Service provision for activities undertaken by the Council;
12.3.4 revised
schedule of significant assumptions.
12.4 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 2023/24 financial year.
12.5 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.
12.6 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.
13. Consultation
13.1 The
draft Annual Plan 2023/24 was adopted by the Council on 28 February 2023.
13.2 The
Council completed consultation with the community on the draft Annual Plan
2023/24 via a Consultation document and underlying information adopted on 28
February 2023.
13.2.1 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;
13.2.2 Opportunity for
members of the public to present at public hearings was available from 27 April
to 4 May 2023. We received 811 submissions and 115 submitters appeared in
person;
13.2.3 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;
13.2.4 The result of this work has been provided to elected members
to assist with their deliberations. The Thematic Analysis of the Annual Plan 2023/24
Submissions is Attachment E 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.
13.3 In
the time since the conclusion of the Hearings staff have held numerous
briefings with councillors (15, 24, 30 May, 1 and 6 June 2023), provided
responses to issues and questions raised, and received direction on all matters
raised. The briefing of 1 June was open to the public.
13.4 Guidance
provided by Elected Members and the Mayor’s Recommendations has been
built into the Annual Plan 2023/24 adoption documents, incorporating any rates
impact.
13.5 Changes
made largely reflect community feedback on the draft Annual Plan or changes to
Council’s operating environment since adopting the draft in February.
14. Audit and Risk Management Committee
14.1 Council’s
Audit and Risk Management Committee met on 20 June 2023 in respect of the
information that provides the basis for the 2023/24 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 2023/24.
2.
Advises the Council that in the Committee’s opinion an appropriate
process has been followed in the preparation of this information.
15. External Audit
15.1 Note
that Annual Plans are not
subject to formal audit by
Audit New Zealand.
16. Policy
Framework Implications Ngā
Hīraunga ā- Kaupapa here
Strategic
AlignmentTe Rautaki
Tīaroaro
16.1 This
report supports the Council's
Long Term Plan (2021 - 2031):
16.2 Internal Activities
16.2.1 Activity: Performance Management and Reporting
· Level of Service: 13.1.1 Implement the Long Term
Plan and Annual Plan programme plan - Critical path milestone due dates in
programme plans are met.
Policy
Consistency Te Whai
Kaupapa here
16.3 The decisions are
consistent with Council’s Plans and Policies.
Impact
on Mana Whenua Ngā
Whai Take Mana Whenua
16.4 The annual plan
involves a significant decision in relation to ancestral land or a body of
water or other elements of intrinsic value, in that Takapūneke Reserve will
receive additional funds.
16.5 The purpose of the
Annual Plan is to update specific content from the last Long Term Plan,
especially where circumstances have changed. It is not a fundamental review of
plans.
16.6 The Long Term Plan
2021 contained a range of services and initiatives whose purpose was to involve
and support Mana Whenua in the future planning, direction and development of
the city. That relationship must be extended and built upon as a
partnership during the development of the 2024-34 Long Term Plan.
16.7 New processes are
already in train to ensure that our partnership priorities are met for the 2024
LTP. This includes the appointment of new Te Tiriti Relations advisors, and
ongoing discussions and relationship-building with Mana Whenua
representatives. Discussion with the Te Tiriti Relations advisors as part
of this process indicated their preference to focus on co-development of the
Strategic Framework and 2024 LTP rather than the details of the Annual Plan
2023/24.
16.8 The LTP process
specifically includes early involvement of Mana Whenua in both the setting of
Strategic Framework that will drive the next LTP, and in the detailed planning
phases that occur (around services, projects and processes) before a draft LTP
is developed. These are new processes and are still being developed and
refined.
16.9 The Council
directly engages with iwi – Te Rūnanga o Ngāi Tahu, and six of
the Papatipu Rūnanga who fall within the Council catchment as mana whenua
of respective rohe: Te Ngāi Tūāhuriri Rūnanga, Te Hapū
o Ngāti Wheke, Wairewa Rūnanga, Te Rūnanga o Koukourārata,
Ōnuku Rūnanga and Te Taumutu Rūnanga.
Climate
Change Impact Considerations Ngā Whai Whakaaro mā te Āhuarangi
16.10 This Annual Plan continues
with the climate change commitments set out in the 2021 Long Term Plan and sets
the stage for further initiatives in the 2024 LTP.
Accessibility
Considerations Ngā
Whai Whakaaro mā te Hunga Hauā
16.11 Not relevant.
17. Resource Implications Ngā Hīraunga Rauemi
Capex/Opex Ngā Utu Whakahaere
17.1 Cost
to Implement - within existing budget.
17.2 Maintenance/Ongoing
costs - within existing budget.
17.3 Funding
Source - existing budget per Council's Long Term Plan (2021 – 2031.)
Other He mea anō
17.4 None.
18. Legal Implications Ngā Hīraunga ā-Ture
Statutory power to undertake proposals in the report
Te Manatū Whakahaere Kaupapa
18.1 The Council is required to prepare and adopt a Draft Annual
Plan for each financial year (s.95(1)) Local Government Act 2002).
Other Legal Implications Ētahi atu
Hīraunga-ā-Ture
18.2 There is no additional legal context, issue or
implication relevant to this decision.
19. Risk Management Implications Ngā Hīraunga Tūraru
19.1 Risks
identified and managed through the general checklists and sign-offs by
management, including significant forecasting assumptions, reviewed by Audit
and Risk Management Committee.
Attachments Ngā Tāpirihanga
|
No.
|
Title
|
Reference
|
Page
|
|
a ⇩ 
|
Mayor's
Commentary and Recommendations
|
23/939657
|
20
|
|
b ⇩
|
Financial
changes from the Draft Annual Plan
|
23/976468
|
28
|
|
c ⇩
|
Proposed
changes to the Council's capital programme
|
23/929940
|
30
|
|
d ⇩ 
|
Funding Impact
Statement - Rating Information
|
23/946364
|
31
|
|
e ⇩
|
Thematic
Analysis of the Annual Plan 2023/24 Submissions
|
23/870042
|
47
|
|
f ⇩
|
Annual Plan
2023/24 - Management Sign-off for Process
|
23/902867
|
69
|
|
g ⇩
|
Annual Plan
2023/24 - Management Sign-off for Significant Forecasting Assumptions
|
23/902871
|
85
|
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
|
Authors
|
Boyd Kedzlie -
Senior Business Analyst
Adelaine
Hansson - Performance Analyst
Bruce Moher -
Manager Corporate Reporting
Andrew
Jefferies - Manager Rates Revenue
Andrew
Robinson - Head of Programme Management Office
Peter Ryan -
Head of Corporate Planning & Performance
Ron Lemm -
Manager Legal Service Delivery, Regulatory & Litigation
|
|
Approved By
|
Peter Ryan -
Head of Corporate Planning & Performance
Russell Holden
- Head of Finance
Helen White -
Head of Legal & Democratic Services
Leah Scales -
General Manager Resources/Chief Financial Officer
Lynn
McClelland - Assistant Chief Executive Strategic Policy and Performance
Dawn Baxendale
- Chief Executive
|
