notice of meeting notice is hereby given of the meeting of the … · 2014-08-12 · tuesday 12...

NOTICE OF MEETING

Notice is hereby given of the Meeting of the Finance and Policy Committee

to be held in the Council Chamber, First Floor, Civic Administration Building,

101 Esk Street, Invercargill on Tuesday 12 August 2014 at 4.00 pm

His Worship the Mayor Mr T R Shadbolt JP Cr N D Boniface (Chairman) Cr G J Sycamore (Deputy Chair) Cr R L Abbott Cr G D Lewis Cr D J Ludlow Cr L S Thomas

EIRWEN HARRIS MANAGER, SECRETARIAL SERVICES

A G E N D A

Page

1. APOLOGIES

His Worship the Mayor

2. PUBLIC FORUM

3. REPORT OF THE CHIEF EXECUTIVE

3.1 ELECTORAL OPTIONS – LOCAL GOVERNMENT ELECTIONS 2016 5

Appendix 1 7

4. MONITORING OF PERFORMANCE

4.1 LEVELS OF SERVICE 1 JULY 2013 TO 30 JUNE 2014 17

6. ACTIVITY PLAN REVIEW

N/A

7. DEVELOPMENT OF POLICIES / BYLAWS

7.1 REPORT OF THE DIRECTOR OF FINANCE AND CORPORATESERVICES

7.1.1 Financial Policies 21

Appendix 1 25 Appendix 2 29 Appendix 3 31 Appendix 4 35

8. ACTION SHEET

9. OTHER BUSINESS

10. URGENT BUSINESS

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TO: FINANCE AND POLICY COMMITTEE

FROM: CHIEF EXECUTIVE

MEETING DATE: TUESDAY, 12 AUGUST 2014

ELECTORAL OPTIONS – LOCAL GOVERNMENT ELECTIONS 2016

Report Prepared by: R W King – Chief Executive

SUMMARY

The Council has the option to decide, by 12 September 2014, whether to stay with the current electoral system, First Past the Post (FPP) or whether to change to the alternative system, single transferable vote (STV) for the 2016 elections. Whether or not the Council passes a resolution by 12 September 2014, it must give public notice by 19 September of the right for 5% of electors to demand a poll on the electoral system to be used at the 2016 local elections.

RECOMMENDATION

That the Invercargill City Council retains the First Past the Post (FPP) electoral system for the 2016 Triennial Local Government Elections.

IMPLICATIONS

1. Has this been provided for in the Long Term Plan/Annual Plan?

N/A

2. Is a budget amendment required?

No

3. Is this matter significant in terms of Council’s Policy on Significance?

No

4. Implications in terms of other Council Strategic Documents or Council Policy?

Nil

5. Have the views of affected or interested persons been obtained and is any further public consultation required?

Decision subject to poll provisions

FINANCIAL IMPLICATIONS

A change from FPP to STV will increase the cost of holding the elections to the Council, as an external provider will be required to process the results.

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ELECTORAL OPTIONS – LOCAL GOVERNMENT ELECTIONS 2016 Attached as Appendix 1 is the Code of Good Practice for the Management of Local Authority Elections and Polls 2016 as issued by the New Zealand Society of Local Government Managers. This report describes in detail how the two systems work, and their respective advantages and disadvantages.

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TO: FINANCE AND POLICY COMMITTEE FROM: DIRECTOR OF FINANCE AND CORPORATE

SERVICES MEETING DATE: TUESDAY 12 AUGUST 2014

LEVELS OF SERVICE REPORT – 1 JULY 2013 TO 30 JUNE 2014 Report Prepared by: Melissa Short – Strategy and Policy Manager SUMMARY Reporting on the Corporate Services levels of service measures for the period comprising 1 July 2013 to 30 June 2014. RECOMMENDATIONS That the report be received. IMPLICATIONS 1. Has this been provided for in the Long Term Plan/Annual Plan?

The report monitors performance in relation to levels of service measures identified in the Long Term Plan and Annual Plan.


No


No


No


No FINANCIAL IMPLICATIONS No financial implications result from this report.

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DEMOCRATIC PROCESS

Democratic Activities 1 July 2013 to 30 June 2014

2012/13 Annual Report adopted before 1 November 2013. Achieved. Annual Report adopted on 29 October 2013.

2014/15 Annual Plan adopted before 1 July 2014. Achieved. Annual Plan adopted on 17 June 2014.

DESTINATIONAL MARKETING Please note, the following information and graphs are supplied by Venture Southland. Commercial Accommodation Monitor - May update (released July 2014)

In May 2014 compared with May 2013, Southland guest nights rose 0.8 percent to 26,709. International guest nights fell 8.5 percent to 4,414 while Domestic guest nights rose 2.9 percent to 22,295. The average length of stay rose from 1.68 nights to 1.74 nights. The overall occupancy rate fell from 29.3 percent to 27.3 percent. The occupancy rate, excluding holiday parks, was 35.5 percent in May 2014. Accommodation capacity, excluding holiday parks, was unchanged. For the year ended May 2014 compared with the previous year, guest nights fell 3.1 percent to 365,141, with International guest nights rising 0.7 percent to 106,711 and Domestic guest nights falling 4.6 percent to 258,430.

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Total NZ – Guest Nights; last three years (in comparison with regional trend)

ENTERPRISE Please note, no report was available at the time of printing this report. Venture Southland receive updated information in August and reports will be available following. INVESTMENT PROPERTY 1 July 2013 to 30 June 2014 Investment Property Activity

Investment Property transactions (purchases and sales) Sales 13 Bond Street, Invercargill (5 August 2013)

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TO: FINANCE AND POLICY COMMITTEE FROM: DIRECTOR OF FINANCE AND CORPORATE

SERVICES MEETING DATE: TUESDAY 12 AUGUST 2014

FINANCIAL POLICIES Report Prepared by: Melissa Short – Strategy and Policy Manager SUMMARY Council’s financial policies are due for review. RECOMMENDATIONS That the draft Liability Management, Rates Postponement and Rates Remission Policies be adopted for public consultation. IMPLICATIONS 1. Has this been provided for in the Long Term Plan/Annual Plan?

No


No


No


These policies form a key part of Council’s financial framework.


Adoption of the draft policies is the first step in the public consultation process. Consultation will be undertaken in a way that meets the requirement of section 82 of the Local Government Act 2002.

FINANCIAL IMPLICATIONS No financial implications arise from this report.

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FINANCIAL POLICIES To ensure compliance with the Local Government Act 2002 (LGA) and Council’s own policies, a thorough review of Council’s Policy Register needs to be undertaken. This exercise has commenced by staff reviewing Council’s Liability Management Policy, Rates Postponement Policy and Rates Remission Policy. Following an initial staff review the three policies were presented to the Audit and Risk Committee with a list of areas where there was the potential for amendment. The changes implemented in the draft policies will enable Council to address amended legislative requirements and ensure consistency in the format that policies take. A monitoring clause has been added to all three policies that will have the effect of ensuring Executive staff report to the Audit and Risk Committee on the application of the policies. Liability Management Policy (Appendix 1) A Liability Management Policy must state Council’s policies in respect of the management of both borrowing and other liabilities. The following is a list of amendments that have been made to the draft Liability Management Policy: Section headed “Local Government Act 2002 Requirements” • Legislative reference has been amended to read section 102(1), whereas it was

previously section 102(4)(b). • The list of policies Council is legislatively required to have within its Liability

Management Policy no longer includes specific borrowing limits or the giving of security. These bullet points have been removed from the Policy and are now considered within Council’s Financial Strategy. The Financial Strategy is reviewed at least once every three years as part of the LTP process.

Section headed “Objective” • Long Term Council Community Plan has been amended to read Long Term Plan. This

has been amended throughout the entire Policy. The Reporting and Review timeframe has been amended from that of a three yearly review to a six yearly review. This is in line with the LGA requirement that the Policy is reviewed at least once every six years. Rates Postponement Policy (Appendix 2) A Rates Postponement Policy must state the objective sought to be achieved by a postponement of the requirement to pay rates and the conditions and criteria to be met in order for the requirement to pay rates to be postponed. Staff have made only one amendment to the Rates Postponement Policy. A review is required at least once every six years under the LGA and therefore a review clause has been added to the Policy. Rates Remission Policy (Appendix 3) A Rates Remission Policy must state the objective sought to be achieved by the remission of rates and the conditions and criteria to be met in order for rates to be remitted. The following is a list of amendments that have been made to the Rates Remission Policy: • In clause (c) Remission of Rates on Land protected for Natural, Cultural or Historic

Conservation Purposes, there has been an addition under the Criteria and Conditions section. Section 39 Heritage New Zealand Pouhere Taonga Act 2014 has been added to the list of legislation under which a protection order or covenant can be issued and give rise to the Rates Remission Policy. This legislation repealed the Historic Places Act 1993 and it is under this legislation that new Heritage Covenants will be issued.

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• A review is required at least once every six years under the LGA and therefore a review clause has been added to the Policy.

With the earthquake-prone building legislation being developed at Central Government level, there was a discussion at the Audit and Risk Committee Meeting regarding whether the Policy should include a category regarding strengthening work for earthquake prone buildings as a reason for Council to consider remissions. The Audit and Risk Committee recommended that Council investigate incentives for strengthening earthquake prone buildings following decisions and the development of legislation from Central Government rather than amending the Rates Remission Policy. Criteria and conditions regarding earthquake prone buildings have therefore not been included in the draft policy attached.

PUBLIC CONSULTATION Under the amendments to the LGA, Council no longer needs to use the Special Consultative Procedure when undertaking consultation on these draft policies. The new obligation under the Act is that public consultation is undertaken using a consultation process that gives effect to the requirements of section 82. Section 82 presents the principles of consultation as attached in Appendix 4. Section 82A (also in Appendix 4) states that as part of the consultation Council must make a copy of the draft policies available to the public for consultation. The development of Council’s Significance and Engagement Policy will assist in providing direction as to what level of consultation is appropriate for future policies or proposals that do not require use of the Special Consultative Procedure. In the absence of the Significance and Engagement Policy, to achieve compliance with the requirements of sections 82 and 82A of the LGA the draft policies and this report will form a consultation package that will be made available to the public. Council will also utilise its website and Facebook site as well as its NoticeBoard and Community News publications to advertise the availability of the consultation package and to explain what the policies contain and how this could affect members of the Community. To encourage people to make their views known the advertising of the policies will suggest that the community provide written comments, which could include email or posts on our Facebook page, and that these written comments will be collated and presented to Council for consideration prior to making decisions on the policies. Iwi are the only stakeholder group that have been identified as having an interest different to the general community and should be provided with a copy of the consultation package and an opportunity to discuss any implications with Council prior to Council making decisions and adopting the policies.

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LIABILITY MANAGEMENT POLICY

Reference Number: A804696

Authorised by:

Invercargill City Council

Effective Date:

Supersedes: 2009 Liability Management Policy

Policy Owner: Invercargill City Council

Purpose:

This defines the statement of intent of the

policy.

Council borrows for the following primary purposes: General debt to fund Council’s capital works primarily on infrastructure

assets. The use of debt is seen as an appropriate and efficientmechanism for promoting intergenerational equity between current andfuture ratepayers in relation to Council’s assets and investments.

Short term debt to manage timing differences between cash inflows andoutflows, and to maintain Council’s liquidity.

Specific debt associated with significant “one-off” projects and non-financial investments from time to time.

Borrowing through hire purchase, credit, deferred payment or leasearrangements in the ordinary course of Council business.

LOCAL GOVERNMENT ACT 2002 REQUIREMENTS

Section 104 of the LGA 2002 provides that the Liability Management Policy required to be adopted under Section 102(1) must state the local authority policies in respect of liability management, including: (a) Interest rate exposure (b) Credit exposure (c) Liquidity (d) Debt repayment

OBJECTIVES

The objectives of the Liability Management Policy are consistent with market best practice and will take into account Council’s 10 year plans as set out in the Long Term Plan. The key Liability Management objectives in relation to borrowings are to: Prudently manage Council’s borrowing activities to ensure the ongoing funding of Council.

Borrow only under Council approved facilities and as permitted by this policy. Minimise borrowing costs within prudent risk management control limits. Manage exposure to adverse interest rate movements. Ensure operational controls and procedures to protect Council against financial loss, opportunity cost and other

inefficiencies are maintained.

BORROWING MANAGEMENT AND INTERNAL CONTROLS

Council approves policy parameters in relation to borrowing activities. Council approves, by resolution, the borrowing requirement for each financial year in the Annual Plan or Long Term Plan or by later resolution during the year. Council considers the impact on its borrowing limits as well as the size and the economic life of the asset that is being funded and its consistency with Council’s Long Term Plan. A resolution of Council is not required for hire purchase, leased, credit or deferred purchase of goods if:

Appendix 1

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The period of indebtedness is less than 365 days; or The goods or services are obtained in the ordinary course of operations on normal commercial terms for amounts not

exceeding in aggregate $50,000. Council’s Chief Executive has overall responsibility for the operations of Council. The Director of Finance and Corporate Services reviews regular treasury reports to ensure compliance with policies, procedures and risk limits and has overall responsibility for setting risk management strategies in relation to the implementation of this treasury policy. The Director will also oversee the management of Council’s relationship with financial institutions and the negotiation of borrowing facilities with bankers, the appointment of brokers / arrangers / managers. Council’s borrowing activities are managed centrally through its accounting function. The accounting function is broadly charged with the following responsibilities: Manage Council’s borrowing programme to ensure funds are readily available at margins and costs favourable to

Council. Raise authorised and appropriate borrowing, in terms of both maturity and interest rate strategies. Manage the impact of market risks such as interest rate risk and liquidity on Council’s borrowing by undertaking

appropriate hedging activity in the financial markets. Minimise adverse interest rate related increases on ratepayer charges and maintain overall interest costs within

budgeted parameters. Provide timely and accurate reporting of treasury activity and performance. Council is prohibited from borrowing in a foreign currency by Section 113 of the Local Government Act 2002.

INTEREST RATE EXPOSURE

Interest rate risk management refers to managing the impact that movements in interest rates can have on Council’s cash flows. This impact can be both favourable and unfavourable. Council’s ongoing borrowing requirement gives rise to direct exposure to interest rate movements.

FIXED / FLOATING PROFILE

Interest is incurred on any bank funding facility, issuance of local authority stock and other borrowing arrangements. This policy recognises that the longer the term of borrowing, the greater the interest rate risk. Longer term fixed rate borrowings may be of benefit if market interest rates rise, but equally may not allow the Council to take advantage of periods of low interest rates. A balance is achieved through having variable terms with regard to interest rate resets. The Council manages its interest rate exposures by defining minimum and maximum hedging percentages within various time buckets. These parameters are reviewed annually by the Director of Finance and Corporate Services. Any changes recommended must be approved by the full Council before inception. The table below shows an example of how minimum and maximum hedged or fixed rate exposure requirements within various time buckets are detailed in operational procedure and reporting documentation.

Interest Rate Maturity Profile Limit

Minimum Fixed Rate Maximum Fixed Rate

Less than one year 40% 100%

One year to three years 20% 70%

Three years to five years 10% 50%

Five years to 10 years 0% 40%

Any hedging outside the determined parameters or for longer than 10 years must be approved by the Council, before initiation. When managing the interest rate risk of the Council the hedging percentages relate to total core debt. Core debt cannot exceed borrowing projections as per the Long Term Plan or Annual Plan or as approved by the Council.

INTEREST RATE RISK MANAGEMENT CONTRACTS

Interest rate risk can be managed by using interest rate risk management contracts that allow the reprofiling of the portfolios including the: Hedging of up to 100% of repricing risk on existing fixed rate debt and issue yield risk on planned new debt within the

next 12 month period. Converting fixed rate borrowing into floating rate or hedged borrowing and floating rate borrowing into fixed or hedged

borrowing within the overall parameters of this policy.

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The following interest rate risk management instruments are approved by Council: Interest Rate Swaps Forward Rate Agreements Interest Rate Options on approved underlying instruments, eg on Interest Rate Swaps or bonds. Interest Rate Collar Strategy, but only where the ratio of the face value and interest rate exposure on bought to sold

legs is 1:1.

CREDIT EXPOSURE

Council hedging can only be undertaken with approved New Zealand Registered Banks.

LIQUIDITY AND FUNDING RISK

Liquidity management refers to the timely availability of funds to Council when needed, without incurring penalty costs. Funding risk management centres on the ability to re-finance or raise new debt at a future time at the same or more favourable pricing (fees and borrowing margins) and terms of existing facilities. A key factor of funding risk management is to reduce the concentration of risk at any one point in time so that if one-off internal or external negative credit events occur, the overall interest cost is not unnecessarily increased. The following guidelines have been established to provide Council with appropriate levels of liquidity at all times, as follows: Cash flow forecasts will be produced to assist in the matching of operational and capital expenditure to revenue

streams and borrowing requirements. Council will maintain its financial investments in liquid instruments. Council will ensure that, where sinking funds or Council created investments are maintained to repay borrowing, these

investments are held for maturities not exceeding the relevant borrowing repayment date. To minimise the impact of unexpected cash surpluses, the Council will take advantage of the efficiencies of any

floating rate loan facility. The following guidelines have been established to control funding risk: To avoid concentration of debt maturity dates no more than 50% or $25 million (whichever is the highest) of total debt

can be subject to refinancing on a rolling 12 month basis. Total debt is defined as total existing external debt.

DEBT REPAYMENT

Repayment of debt (interest and principal) is governed by: Affordability of debt servicing costs. Intergenerational equity principles (debt will be repaid over the life of the asset or 25 years whichever is the lesser). Maintenance of prudent debt levels and borrowing limits. Council repays borrowings from general, special funds or from the existing specific sinking fund allocated to that

borrowing. Where a loan is raised for a specific purpose and the funds are no longer required the funds will be held in a special

fund until the funds can be applied against a future borrowing.

BORROWING MECHANISMS

In developing strategies for new borrowing (in relation to source, term, size and pricing) Council takes into account the following: Available and Council approved sources, terms and types of borrowing. Council’s overall debt maturity profile, to ensure concentration of debt is avoided at reissue/rollover time. Prevailing interest rates, margins and total cost relative to term and nature of the borrowing. The market’s outlook on future interest rate movements as well as Council’s own. Legal documentation and financial covenants.

GUARANTEES

Council provides guarantees for banks for loans between the bank and non-profit bodies advances where Council considers the guarantee to be beneficial to the community in accordance with Council’s policies on loan guarantees. Clear parameters for maximum levels of exposure are set in the loan guarantees policy.

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The non-profit bodies are to forward their financial statements to Council annually. Should the guarantee be called upon, Council takes immediate steps to recover the money. Guarantees require the prior approval by way of Council resolution.

LEASES

Council utilises finance leases (as opposed to an operational lease ie renting) as a means of financing some office equipment.

GLOSSARY

Approved Risk Management Instruments

Interest rate swap (“IRS”) Interest Rate Swap

An interest rate swap is an agreement between Council and a counterparty (usually a bank) protecting Council against a future adverse interest rate movement. Council pays (or receives) a fixed interest rate and receives (or pays) a floating interest rate. The parties agree to a notional principal amount, the future interest rate, the settlement dates and the benchmark floating rate, which is usually off the Reuters page containing the daily rate sets for BKBM (bank bill reference rates). Objective

To provide Council with certainty as to its interest rate cost on an agreed principal amount for an agreed period. Floating rate sets are typically every three or six months over the life of the swap. Example

Council fixes its interest rate for three years at 6.50%, on a quarterly basis on a portion of its planned borrowings by entering into a three year 6.50% fixed rate swap. The floating rate reference is three month BKBM. Outcome

On a swap-reset date, the three month bank bill rate is at, say 4.75%. Council borrows from its bank the principal, for three months at 4.75% plus Council’s margin. At the same time the bank pays Council 4.75% on the principal amount for a three month period. Council then pays the bank 6.50% on the principal amount for a three month period. This means that Council’s effective interest rate is 6.50% plus its margin. In practice cashflows would be netted off if the swap and the underlying borrowing facility were with the same bank.

Monitoring & Auditing:

This section describes who and how the application of the policy will be monitored.

The Audit and Risk Committee will monitor the application of this Policy via reports from Executive staff.

Revision History:

Effective Date:

Review Period: This Policy will be reviewed every six (6) years unless earlier review is required due to legislative changes, or is warranted by another reason.

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RATES POSTPONEMENT POLICY


Authorised by:


Effective Date:

Supersedes: 2009 Rates Postponement Policy


Purpose:

This defines the statement of intent of the policy.

The objective of this policy is to assist ratepayers experiencing extreme financial circumstances which affect their ability to pay rates.

CONDITIONS AND CRITERIA

1. Only rating units used solely for residential purposes (as defined by Council) will be eligible for consideration for ratespostponement for extreme financial circumstances.

2. Only the person entered as the ratepayer, or their authorised agent, may make an application for rates postponementfor extreme financial circumstances. The ratepayer must be the current owner of, and have owned for not less thanfive years, the rating unit which is the subject of the application. The ratepayer must not own any other rating units orinvestment properties (whether in the district or in another district).

The ratepayer (or authorised agent) must make an application to Council on the prescribed form (copies can be obtained from Council offices, or from the Bluff Service Centre).

Council will consider, on a case by case basis, all applications received that meet the criteria described in the first two paragraphs under this section. Council will delegate authority to approve applications for rates postponement to particular officers.

When considering whether extreme financial circumstances exist, all of the ratepayer’s personal circumstances will be relevant including the following factors: age, physical or mental disability, injury, illness and family circumstances.

Before approving an application Council must be satisfied that the ratepayer is unlikely to have sufficient funds left over, after the payment of rates, for normal health care, proper provision for maintenance of his/her home and chattels at an adequate standard as well as making provision for normal day to day living expenses.

Where Council decides to postpone rates the ratepayer must first make acceptable arrangements for payment of future rates, for example by setting up a system for regular payments.

Any postponed rates will be postponed until:

The death of the ratepayer(s); or

Until the ratepayer(s) ceases to be the owner of the rating unit; or

Until the ratepayer(s) ceases to use the property as his/her residence; or

Until a date specified by Council.

Each ratepayer who has successfully applied for postponement will be the subject of review every three years.

Council will charge an annual fee on postponed rates for the period between the due date and the date they are paid. This fee is designed to cover Council’s administrative costs.

Council will charge interest on the total amount postponed. The interest will be assessed annually and calculated using the average interest rate incurred by Council on its overdraft.

The policy will apply from the beginning of the rating year in which the application is made although Council may consider backdating past the rating year in which the application is made depending on the circumstances.

The postponed rates or any part thereof may be paid at any time. The applicant may elect to postpone the payment of a lesser sum than that which they would be entitled to have postponed pursuant to this policy.

Appendix 2

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Postponed rates will be registered as a statutory land charge on the rating unit title. This means that Council will have first call on the proceeds of any revenue from the sale or lease of the rating unit. Monitoring & Auditing:



Revision History:

Effective Date:


Associated Documents / References: Rates Postponement Application Form (A355596)

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RATES REMISSION POLICY


Authorised by:


Effective Date:

Supersedes: 2009 Rates Remission Policy


Purpose:

This defines the statement of intent of the policy.

This policy outlines the objectives sought to be achieved by the remission of rates and the conditions and criteria to be met in order for rates to be remitted.

REMISSIONS FOR COMMUNITY, SPORTING AND OTHER ORGANISATIONS

Objectives

To facilitate the ongoing provision of not for profit community services, sporting and recreational opportunities for the residents of the district.

The purpose of granting rates remission to an organisation is to:

Assist the organisation’s survival; and

Make membership of the organisation more accessible to the general public, particularly disadvantagedgroups. These include children, youth, young families, aged people, those with disabilities andeconomically disadvantaged people.

Conditions and Criteria

This part of the policy will apply to land owned and occupied by a community, sporting or charitable organisation, which is used exclusively or principally for sporting, recreation, or community purposes.

The policy will not apply to groups or organisations whose primary purpose is to address the needs of adult members (over 18 years) for entertainment or social interaction.

The remission is set at 50% of all rates with the exception of targeted rates for water supply, sewage disposal or refuse collection. Properties used for community residential purposes will be set at 100% except for targeted rates for water supply, sewage disposal or refuse collection. Council will, however, decide the amount of rates to be remitted on a case by case basis.

Applications for remission must be made on the prescribed form (available from Council offices or from the Bluff Service Centre).

The application for rates remission must be made to Council prior to the commencement of the rating year. Applications received during a rating year will be applicable from the commencement of the following rating year. Applications will not be backdated.

Organisations making application should include the following documents in support of their applications:

Statement of objectives; and

Financial accounts; and

Information on activities and programmes; and

Details of membership or clients.

The policy shall apply to such organisations as approved by Council as meeting the relevant criteria. Council may delegate the authority to make such approvals to particular Council officers as specified by a resolution of Council.

Appendix 3

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In granting remissions under this part of the policy Council may specify certain conditions before remission will be granted. Applicants will be required to agree in writing to these conditions and to pay any remitted rates if the conditions are violated.

REMISSIONS FOR ECONOMIC DEVELOPMENT

Objectives

Council is committed to supporting and promoting a profitable business sector. Rates relief is tangible evidence of this commitment. Conditions and Criteria

Council favours developments that directly or indirectly have the potential to boost employment opportunities in the district in the long term. This can be new building developments or the alteration of existing buildings. Residential development is not included in this policy. Specifics

(i) The development cost should be at least $100,000 for the following industries:

(a) Downstream industries (eg forest products, aluminium, fishing).

(b) Industries unaffected (largely) by freight costs (eg high tech, information collection and distribution and education).

(c) Tourism related activities.

Council also has discretion to consider applications under $100,000 in special circumstances.

(ii) The development cost for all other activities must be at least $250,000.

(iii) Rates may be remitted for up to three years and Council may impose conditions as to the completion of the development.

(iv) Developments which in Council’s opinion are in direct competition with other operational businesses will not be eligible, however relief may be granted during the construction period.

Consideration of Other Matters

Each application will be treated on its merits and Council will have regard to:

(i) The financial advantage to the district, including job creation.

(ii) The extent to which the viability of the development is reliant on rates relief and whether such relief would expedite the development.

(iii) The provision of any free public amenities or public facilities (other than those required by another Act), such as public viewing areas and restrooms, landscaping and environmental improvement, fountains and outdoor sculptures.

(iv) Other issues specific to the application including:

The ability of the applicant to pursue sound business practices.

The better utilisation of the city’s infrastructural assets.

Promotional factors of benefit to the city.

Applications for the remission for economic development should be made at the planning stage and will be considered by the Finance and Policy Committee of Council. In considering applications Council may decide to seek independent verification of any information provided on an application.

Council will decide what amount of rates will be remitted on a case by case basis. For the purposes of this part of the policy, a project will be viewed as having commenced when a building consent is issued.

In granting remissions under this part of the policy Council may specify certain conditions before remission will be granted. Applicants will be required to agree in writing to these conditions and to pay any remitted rates if the conditions are violated.

REMISSION OF RATES ON LAND PROTECTED FOR NATURAL, CULTURAL OR HISTORIC CONSERVATION PURPOSES

Objectives

To preserve and promote natural resources and heritage to encourage the protection of land for natural, cultural or historic purposes.

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Conditions and Criteria

Ratepayers who own rating units which have some feature of natural, cultural or historic heritage which is voluntarily protected may qualify for remission of rates under this part of the policy.

This policy applies only to property over which a protection order or covenant has been issued under the following Acts:

Section 6 Historic Places Act 1993

Section 39 Heritage New Zealand Pouhere Taonga Act 2014

Section 22 Queen Elizabeth the Second National Trust Act 1977

Sections 76 and 77 Reserves Act 1977

Section 27 Conservation Act 1987

Land that is non-rateable under Section 8 of the Local Government (Rating) Act and is liable only for rates for water supply, sewage disposal or refuse collection will not qualify for remission under this part of the policy.

Applications must be made in writing. Applications should be supported by documentary evidence of the protected status of the rating unit (eg a copy of the covenant or other legal mechanism).

The Director of Finance and Corporate Services shall have the authority to remit rates under this section. Remissions may be granted subject to conditions. Applicants will be required to agree in writing to any conditions and to pay any remitted rates if the conditions are violated.

REMISSION OF PENALTIES

Objective

The objective of this part of the remission policy is to enable Council to act fairly and reasonably in its consideration of rates which have not been received by Council by the penalty date due to circumstances outside the ratepayer’s control. Conditions and Criteria

Automatic remission of the penalties incurred on instalment one will be made where the ratepayer pays the total amount due for the year on or before the penalty date of the second instalment.

Remission of one penalty will be considered in any one rating year where payment has been late due to significant family disruption. Remission will also be considered in the case of death, illness, or accident of a family member.

Remission of the penalty will be granted if the ratepayer is able to provide evidence that their payment has resulted from matters outside their control. Each application will be considered on its merits and remission will be granted where it is considered just and equitable to do so.

The Director of Finance and Corporate Services shall have the authority to remit penalties under this section. Monitoring & Auditing:



Revision History:

Effective Date:


Associated Documents / References: Rates Remission Application Form (A355596)

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Appendix 4

82 Principles of consultation

(1) Consultation that a local authority undertakes in relation to any decision or other matter must be undertaken, subject to subsections (3) to (5), in accordance with the following principles: (a) that persons who will or may be affected by, or have an interest in, the decision

or matter should be provided by the local authority with reasonable access to relevant information in a manner and format that is appropriate to the preferences and needs of those persons:

(b) that persons who will or may be affected by, or have an interest in, the decision or matter should be encouraged by the local authority to present their views to the local authority:

(c) that persons who are invited or encouraged to present their views to the local authority should be given clear information by the local authority concerning the purpose of the consultation and the scope of the decisions to be taken following the consideration of views presented:

(d) that persons who wish to have their views on the decision or matter considered by the local authority should be provided by the local authority with a reasonable opportunity to present those views to the local authority in a manner and format that is appropriate to the preferences and needs of those persons:

(e) that the views presented to the local authority should be received by the local authority with an open mind and should be given by the local authority, in making a decision, due consideration:

(f) that persons who present views to the local authority should have access to a clear record or description of relevant decisions made by the local authority and explanatory material relating to the decisions, which may include, for example, reports relating to the matter that were considered before the decisions were made.

(2) A local authority must ensure that it has in place processes for consulting with Māori in accordance with subsection (1).

(3) The principles set out in subsection (1) are, subject to subsections (4) and (5), to be observed by a local authority in such manner as the local authority considers, in its discretion, to be appropriate in any particular instance.

(4) A local authority must, in exercising its discretion under subsection (3), have regard to: (a) the requirements of section 78; and (b) the extent to which the current views and preferences of persons who will or may

be affected by, or have an interest in, the decision or matter are known to the local authority; and

(c) the nature and significance of the decision or matter, including its likely impact from the perspective of the persons who will or may be affected by, or have an interest in, the decision or matter; and

(d) the provisions of Part 1 of the Local Government Official Information and Meetings Act 1987 (which Part, among other things, sets out the circumstances in which there is good reason for withholding local authority information); and

(e) the costs and benefits of any consultation process or procedure.

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http://legislation.govt.nz/act/public/2002/0084/latest/link.aspx?id=DLM172321

http://legislation.govt.nz/act/public/2002/0084/latest/link.aspx?id=DLM122284

(5) Where a local authority is authorised or required by this Act or any other enactment to

undertake consultation in relation to any decision or matter and the procedure in respect of that consultation is prescribed by this Act or any other enactment, such of the provisions of the principles set out in subsection (1) as are inconsistent with specific requirements of the procedure so prescribed are not to be observed by the local authority in respect of that consultation.

82A Information requirements for consultation required under this Act (1) This section applies if this Act requires a local authority to consult in accordance with,

or using a process or a manner that gives effect to, the requirements of section 82. (2) The local authority must, for the purposes of section 82(1)(a) and (c), make the

following publicly available: (a) the proposal and the reasons for the proposal; and (b) an analysis of the reasonably practicable options, including the proposal,

identified under section 77(1); and (c) if a plan or policy or similar document is proposed to be adopted, a draft of the

proposed plan, policy, or other document; and (d) if a plan or policy or similar document is proposed to be amended, details of the

proposed changes to the plan, policy, or other document.

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