Agenda of Extraordinary Meeting of Council

Extraordinary Meeting of Council - 02 April 2019 - Open Agenda Item 1

Agenda Items

1. Kerbside recyling collection

Type of Report:	Operational
Legal Reference:	Local Government Act 2002
Document ID:	710714
Reporting Officer/s & Unit:	Jon Kingsford, Director Infrastructure Services

1.1 Purpose of Report

To communicate to Council the process officers are following to implement the kerbside recycling collection as per the Joint Waste Management and Minimisation Plan (WMMP) adopted by Council in September 2018, and to seek approval for the budget parameters to enable officers to go to tender for an enhanced kerbside recycling collection service based on the Joint Waste Management and Minimisation Plan (WMMP).

Officer’s Recommendation

That Council:

a. Approve the extension of the current temporary arrangement for the provision of kerbside recycling collection service until a new service commences.

b. Approve to go to tender specifying outcomes sought through the contract and align with the Waste Management and Minimisation Plan (WMMP) 2018-2024 in regards to weekly collection and receptacle(s) provided, with a budget equivalent to costs of up to $95 per annum for each ratepayer receiving the service (including GST).

c. Note that Officers are working towards tendering for the kerbside recycling collection service as outlined in the Joint Waste Management and Minimisation Plan (WMMP) 2018-2024, for the contract to take effect as close to 1 November 2019 as possible.

d. Note that Council have a recommendation from the Strategy and Infrastructure Committee to collect only Grades 1 and 2 plastics, thus discontinuing the collection of plastics 3-7.

e. Note that Council will undertake consultation with the public as part of the Annual Plan 2019/20 for the funding of the kerbside recycling collection service and how it relates to the Joint Waste Management and Minimisation Plan (WMMP) 2018-2024, based on the current estimated cost increases. The consultation will include options on how the cost for ratepayers will be phased in.

Mayor’s Recommendation

That the Council resolve that the officer’s recommendation be adopted.

1.2 Background Summary

Budgeted cost of kerbside recycling collection service

Napier City’s current kerbside recycling collection service consists of a fortnightly collection with no receptacles provided.

The current 2018/19 budget and LTP budgets are based on an annual cost of $600,000 for a kerbside recycling service. This cost is offset by the utilisation of funds received from the Waste Minimisation Levy, leaving a net cost of $385,000 to be funded from ratepayers in the 2018/19 budget. This results in a cost of $19 (including GST) to each property receiving the recycling service. The current budgeted cost per property excluding the levy offset is $29 (including GST).

Joint Waste Management and Minimisation Plan 2018-2024

In September 2018, Council adopted the Joint Waste Management and Minimisation Plan (WMMP) 2018-2024. This plan outlines that Council will provide all households a receptacle(s) to ensure plastics, paper and glass are kept separated and the collection of recycling will occur weekly, as an enhanced service to kerbside recycling collection.

During the consultation period of the WMMP, indicative costs were outlined to the public. For the option of receptacle(s) and weekly collection, an estimated cost of $59 per year per ratepayer was outlined. The stated amounts are what is included in rates the $59 and are GST inclusive.

At the time of writing the WMMP, it was the intention that Napier City Council would tender for a joint kerbside recycling contract with Hastings District Council (HDC). Although not explicit in the WMMP, the intention was that the service of weekly collection would commence on 1 July 2020.

Council’s current kerbside recycling collection – temporary arrangement

Council currently have a temporary arrangement, as approved on 16 October 2018, with the service provider which was intended to continue on a month to month basis through until 30 June 2019 until a long term recycling contract was implemented. It is proposed that this temporary arrangement be extended until a new arrangement can be put in place. Officers are working towards an implementation time of November 2019.

The annualised cost of the current temporary arrangements are estimated to be approximately $1,500,000 p.a. or $72 per property receiving the service.

Although communication with HDC on this matter is still ongoing, it is likely that Napier City Council will be tendering this contract separately to HDC.

Implementing the WMMP kerbside recycling collection service

Council is intending to go out to tender for the enhanced kerbside recycling collection service in a long term contract in April 2019. It is likely that it will take up to six months for a contractor to mobilise the contract after signing (e.g. purchase plant and machinery). In order to provide as much flexibility to Council and the selected contractor to best manage continuity of service risks, Council officers propose to go to tender on a collaborative contract basis. This contract is likely to be procured on a cost plus profit basis, that better shares the current risks associated with the recycling industry between the contractor and Council.

1.3 Issues

Issues include:

· Council are currently paying an increased rate for the temporary arrangement to maintain the standard fortnightly kerbside recycling collection service. This was agreed to by Council in October 2018 as a one-off measure to ensure the service continued. The current approval is for an eight-month period up to 30 June 2019. Officers are now seeking an extension until the new contract is in place.

· To provide greater certainty of service continuity and to implement contemporary contract management practises, Council officers are working to procure a long term contract for the enhanced kerbside recycling collection service as per the WMMP as soon as possible.

· If the current contractor is unable to continue providing the current service for any reason, then there would be no kerbside recycling collection until a new contract commences (noting a tender process takes approximately 2 months, and mobilisation may be up to 6 months).

· As is the case with any tender process, Officers do not know whether tenders will come in within the estimated budget that has been allowed for.

· Current advice provided to officers indicates that the costs of the enhanced service are likely to come back significantly higher than outlined in the consultation document of the WMMP. In addition, the method of delivery (three crate system) proposed in the WMMP may not now be the most effective mechanism to deliver the service in a cost effective manner. The 2019-20 Annual Plan consultation will inform residents of the possible maximum cost of this service and will include options on how the cost for ratepayers will be phased in.

· Due to the rapidly evolving risks and issues associated with the recycling market, combined with the temporary nature of current service, Council is unlikely to have a joined up approach with HDC when tendering this contract.

The table (Attachment A) sets out in table form the changes that have and are proposed to occur with the funding of the kerbside recycling collection service.

1.4 Significance and Engagement

The changes to kerbside recycling services have been through a special consultative procedure as part of the development of the Waste Management and Minimisation Plan. In the consultation process, a large number of residents from Napier and Hastings provided feedback to the plan (approximately 6,000). Council is now giving effect to that plan.

The significance in this instance, is down to whether the costs of the enhanced kerbside recycling collection service, in today’s market, will be higher than what was indicated in the 2018 consultation of the WMMP, which was $59 per ratepayer. It is for this reason that Council are consulting on the anticipated increased costs to the service in the Annual Plan process.

Our Significance and Engagement Policy tells us that the financial impact on Council’s overall resources and rating level, including cost of the decision, is considered a small impact (low significance) if it has less than a 0.05% increase on rates and/or less than $500,000 external borrowing. High significance is characterised by a large impact being greater than a 1% increase on rates, and/or debt cap exceeded. Any impacts between low and high must be considered on a sliding scale.

Council will only know what the costs will be when the tender documents are received from tendering parties.

As part of the consultation with the public on the Annual Plan 2019/20, officers can enable scope for the Council to be able to respond to submissions on further changes in circumstances (such as updated costings which go beyond the indicative WMMP costs). However, the risk of doing this is that it further delays a long-term contract being put in place (see risk section). The increased costs have been provided as a range and the submission form provides for comment to be made on the future of the kerbside recycling service.

An assessment of this issue against Council’s Significance and Engagement Policy is that:-

· There is a moderate impact on a large proportion of the population

· The change will result in a greater than 1% increase in rates

· There is a large spending increase on an activity group (Other Infrastructure).

Due to the impacts, the community are being consulted on the changes to kerbside recycling as part of the 2019-20 Annual Plan.

1.5 Implications

Financial

The financial implications of implementing the enhanced kerbside recycling collection in Napier were estimated in the 2017/18 financial year as $59 per annum per ratepayer. The current rated costs are $19 per ratepayer. No financial provision beyond the current cost of $600,000 p.a. was updated in the Long Term Plan 2018-28 (LTP) as the WMMP was not adopted until after the LTP had been completed. It was envisaged at that time, that the contract would not be let until 1 July 2020, and therefore the cost could be consulted on at the time of the 2019/20 Annual Plan. The planned implementation date has been brought forward due to the current temporary arrangements.

The impact to rates for 2019/20 is a 3.0% rates increase for the enhanced recycling collection should the total cost of the contract be passed on directly to ratepayers. There are options for how this increase could be managed based on whether Council uses reserves to part fund the service in 2019/20 so that the impact to ratepayers is lessened during that time. The question of using reserves is being posed as part of the Annual Plan consultation with the public. Buffering the impact on ratepayers in this manner could reduce the rates impact in the 2019/20 year to 1.4%.

Social & Policy

The WMMP sets out the policy for managing and minimising waste in the Hawke’s Bay region. The goals include:

1) Reduce, recover and recycle more waste in order to contribute to the NZ waste strategy goal “reducing the harmful effects of waste”;

2) Improve information on waste generation and movements in Napier and Hastings;

3) Improve community awareness on waste and recovery trends and knowledge around resource recovery and diversion potential; and

4) Utilise innovating and cost effective waste management and minimisation approaches.

An enhanced kerbside recycling collection is one of the actions to contribute to the goals. Other actions around kerbside recycling collection include:

· expanding Council kerbside recycling collection to incorporate new developments and semi-urban households,

· considering the desire for enhancing kerbside recycling services in non-residential areas via specific consultation,

· investigating recycling options for multi-unit dwellings, and

· using regulation to control excess producers of recycling.

The Joint Waste Committee recognises that the Goals and Objectives of the WMMP are aspirational and therefore may not be reached in one single step change.

Risk

Council are looking to manage a number of risks relating to the kerbside recycling collection service. These include:

a. If Council do not go to market soon, Council may end up with no kerbside recycling collection provider to cover the current service for several months until a new contract is awarded.

b. If the proposed terms and service being procured in a competitive tender do not match services that the market can effectively deliver, the service cost will be greater than other, more cost effective alternatives.

c. If the market changes further, Council needs to ensure it has sufficient flexibility to respond and change the nature of the services provided within any new contractual arrangement.

If the costs are significantly higher than what was originally anticipated, then the public should be given an opportunity to provide feedback on whether that would affect their support for the enhanced service.

1.6 Options

The service options available to Council are as follows:

a. Implement the Waste Management and Minimisation Plan as approved by Council September 2018 with funding approved in line with the WMMP consultation.

b. Go to the market with a tender for a long term service without Hastings as the joint partner, specifying the method of collection as identified in the WMMP.

c. Go to market with a tender for a long term service without Hastings as the joint partner, identifying the outcomes that Council are seeking through the contract that are consistent with the goals and objectives of the WMMP.

d. Not implement the WMMP and stay with the current level of service (fortnightly, no receptacles), although there may still be a material change in the costs due to changing market conditions.

e. Identify a different solution from that set out in the WMMP, by making a decision inconsistent with that plan by virtue of section 80 of the Local Government Act 2002.

Options Analysis

Discussion on the service options available to Council are as follows:

a. Implement the Waste Management and Minimisation Plan as approved by Council in September 2018 with funding approved in line with the WMMP consultation.

· This involves joint implementation with Hastings from 1 July 2020, recognising that there is a risk that there may not be a contract in place in the proceeding months for that contract.

· Current market indications are that contract costs have increased significantly since the WMMP was finalised therefore funding in line with the WMMP may no longer be sufficient.

· Changes in the recycling markets and the current temporary arrangements in place and the risks associated with this mean that a joint approach may no longer be viable.

b. Go to the market with a tender for a long term service without Hastings as the joint partner, specifying the method of collection as identified in the WMMP.

· The purpose of doing this is to mitigate the risk of not having a contract in place, however advice received indicates that this approach is likely to result in very few, if any tenders.

· This approach is more likely to attract tenders from multiple parties and therefore produce a competitive tendering environment.

· This may mean that the three crate system consulted on in the WMMP is not the end solution delivered to the community.

d. Not implement the WMMP and stay with the current level of service (fortnightly, no receptacles), although there may still be a material change in the costs due to changing market conditions.

· This approach is likely to prolong the current risks and challenges experienced with the current contractor.

e. Identify a different solution from that set out in the WMMP, by making a decision inconsistent with that plan by virtue of section 80 of the Local Government Act 2002.

· This could be to provide a different/reduced level of service and/or revisit what was adopted in the Joint WMMP.

· The Implications of this decision is that this could reopen the entire WMMP and Hastings District Council would need to agree to revisit it too.

· This could involve a potential service change that is reduced from what was proposed, such as drop-off facilities only.

Funding Options

a. Provide Annual Plan funding in line with Waste Management and Minimisation Plan as approved by Council September 2018 to be rates funded – 3.0% rates increase.

b. Provide Annual Plan funding with an option to utilise reserves in years one and two, to smooth the implementation costs if tender is in line with cost estimates of the WMMP. Rates impact year 2019/20 - 1.4%

1.7 Development of Preferred Option

The preferred option is Option C – This involves:

· Seeking to implement the goals and objectives of the Waste Management and Minimisation Plan as approved by Council in September 2018.

· Consulting on funding as part of the 2019-20 Annual Plan.

· Approve funding to a budget equivalent to costs of up to $95 per ratepaying property (inclusive of GST).

· Going to tender for a long term service without Hastings as the joint partner to mitigate the risk of not having a contract in place.

· Implementation date as close as possible to 1 November 2019.

Preferred approach to funding

The preferred option is to provide Annual Plan funding with an option to utilise reserves in years 1 and 2 to smooth the implementation costs, assuming the tender is in line with the cost estimates of the WMMP. The impact to rates for would be 1.4% in 2019/20.

In the event where the best scoring tender is more than 15% above budget then this would come back to Council for consideration and a decision on next steps would be agreed at that time.

1.8 Attachments

a Changes to recycling collection services ⇩

Extraordinary Meeting of Council - 02 April 2019 - Open Agenda Item 2

2. Amendments to the Revenue and Financing Policy and the Rates Remission Policy

Type of Report:	Legal and Operational
Legal Reference:	Local Government Act 2002
Document ID:	711740
Reporting Officer/s & Unit:	Caroline Thomson, Chief Financial Officer Ross Franklin, Consultant

2.1 Purpose of Report

To recommend the proposed amendments to the Revenue and Financing Policy and the Rates Remission Policy for adoption by Council and subsequent consultation with the community.

Officer’s Recommendation

That Council:

a. Adopt the attached materials for consultation on amendments to the Revenue and Financing Policy.

i. Statement of Proposal to amend the Napier City Council Revenue and Financing Policy.

ii. Amended Revenue and Financing Policy.

b. Adopt the attached materials for consultation on amendments to the Rates Remission Policy.

i. Statement of Proposal to amend the Napier City Council Rates Remission Policy.

ii. Amended Rates Remission Policy.

c. Delegate authority to Council’s Chief Financial Officer for the management and implementation of the Rates Remission Policy.

Chairperson’s Recommendation

That the Council resolve that the officer’s recommendation be adopted.

2.2 Background Summary

Any change to Council’s Revenue and Financing Policy and Rates Remission Policy require Council to follow the principles of consultation as outlined in section 82 of the Local Government Act 2002. Any consultation to these policies is separate to, but can be undertaken in conjunction with, consultation on the Annual Plan.

Council’s Revenue and Financing Policy

Audit NZ recommended that Council undertake a full review of its Rates processes and its Funding Impact Statement (FIS). Officers have assessed that a full ‘back to basics’ review of the Revenue and Financing Policy which sets out the Council’s fundamental approach to rating is needed which will take approximately 12-18 months to complete.

In the interim, Officers have undertaken an initial review to ensure the rating information in the Revenue and Financing Policy is consistent with the FIS. This review identified that immediate changes are needed to the Revenue and Financing policy:

· to more accurately describe the rating differentials and targeted rates

· to include the new proposed Whakarire Revetment targeted rate

· to amend the funding split for animal control to align it with the agreed level of rate funding for that activity.

The updated Revenue and Financing policy is attached. Changes from the current policy are highlighted in red. A brief “Statement of Proposal” to outline the changes proposed is also attached.

Council’s Rates Remission Policy

In conjunction with the review of the Funding Impact Statement and Revenue and Financing Policy, Council’s Rates Remission Policy was reviewed to ensure it is fit for purpose and will enable Council to manage any changes to rates as a result of improvements to processes around the setting and collection of rates.

Additional clauses being added to the Rates Remission Policy and include:

· to cover remission of water by meter charges;

· additional flexibility to remit rate penalties to encourage ratepayers to bring their accounts up to date;

· provide the ability to remit rates on Council owned properties; and

· to also smooth the impact of changes in rates where a significant change occurs to the value of rates payable.

Additional changes have also been made to:

1. Make the Chief Financial Officer responsible for managing the Rates Remission Policy, so that it aligns with the organisational structure. A Council resolution is required on this because it involves a change to delegation.

2. Remove text in clause 4 relating to remission on contiguous properties as this is a statutory adjustment made under the Local Government (Rating) Act 2002 – clause 20. The act requires rating units in common ownership to be treated as one unit when they meet the statutory criteria. Where this section is applied there is no remission as the additional rates are not charged in the first place.

The updated policy is attached. Changes from the current policy are highlighted in red. A brief “Statement of Proposal” to outline the changes proposed is also attached.

2.3 Issues

In order to amend the Revenue and Financing Policy and to amend the Rates Remission Policy, Council is required to consult the community on the proposed changes to each policy.

It is proposed that this consultation take place in conjunction with the consultation on the 2019-20 Annual Plan.

2.4 Significance and Engagement

The introduction of the proposed targeted rate on properties on Whakarire Avenue is assessed as triggering high significance in Council’s Significance and Engagement Policy at the higher end of the scale, as there is a medium impact for this specific group of residents. As such, separate targeted consultation will take place with the residents of the properties that will be affected by the introduction of a proposed targeted rate on Whakarire Avenue.

The other policy changes are not considered to trigger significance.

Consultation on these policies is also a legal requirement under the Local Government Act 2002.

The proposal, and proposed amendments to the Revenue and Financing Policy and Rates Remission Policy will be available on Council’s website. Feedback will be able to be provided online via council’s website. Any feedback received on the two policies during the Annual Plan consultation will also be captured.

Consideration of feedback from consultation and adoption of the amendments to the Revenue and Financing Policy and Rates Remission Policy will proceed along the same decision-making timeframe as the Annual Plan 2019/20.

2.5 Implications

Financial

There are no direct financial implications.

Social & Policy

N/A

Risk

The Revenue and Financing Policy underpins Council’s funding so it is important to ensure that the policy is as robust as possible. The proposed changes will improve the policy and reduce any risk that Council may have had under the current policy.

2.6 Options

The options available to Council are as follows:

a. Approve the amended policies and statement of proposals for public consultation.

b. Make further amendments to the policies and statement of proposals and then release for consultation.

c. Retain the existing policies – no change.

2.7 Development of Preferred Option

The preferred option is for Council to approve the proposed amended policies for public consultation. The changes reflect Council policy decisions and also amend the policies to make improvements following a review of the existing documents. A full review of the policies will be undertaken in 2019/20.

2.8 Attachments

a Rates Remission Policy - as amended for consultation ⇩

b Revenue and Financing Policy - as amended for consultation ⇩

c Statement of Proposal for amendments to Revenue and Financing Policy and amendment to Rates Remission Policy ⇩

Extraordinary Meeting of Council - 02 April 2019 - Open Agenda Item 3

3. Consultation Document and draft Annual Plan 2019/20

Type of Report:	Legal
Legal Reference:	Local Government Act 2002
Document ID:	708247
Reporting Officer/s & Unit:	Jane McLoughlin, Corporate Planner Caroline Thomson, Chief Financial Officer Adele Henderson, Director Corporate Services Natasha Carswell, Manager Community Strategies

3.1 Purpose of Report

To present the consultation document and supporting information for the annual plan 2019/20 for Council’s adoption.

Officer’s Recommendation

That Council:

a. Approve the amendments to fees and charges for Environmental Health and Planning Support Services in the document titled Fees and Charges 2019/20.

b. Adopt the following documents as supporting information:

· Long Term Plan 2018-28 Major Projects Update

· FAQs – Water

· FAQs – Waste

· Capital Programme Changes

· What you get for your rates dollar

c. Adopt the Consultation Document form the basis of Council’s consultation with the community on the Annual Plan 2019/20.

d. Note that separate consultation will occur on the Revenue and Financing Policy to inform the Annual Plan 2019/20.

e. Delegate responsibility to the Chief Financial Officer to approve any final edits required to the Consultation Document and supporting information in order to finalise the documents for uploading online and physical distribution.

Mayor’s Recommendation

That the Council resolve that the officer’s recommendation be adopted.

3.2 Background Summary

Developing the annual budget

The process to develop council’s annual budget began in December 2018 with a series of workshops with Councillors to set direction on the budget. These seminars occurred on 18 December 2018, 29 January 2019, 31 January 2019, 28 February 2019, and 5 March 2019. Councillors were provided with cost pressures and efficiencies that could be made, and set direction to stay within our financial caps as outlined in the Finance Strategy.

On 15 March 2019, Council approved the underlying material, assumptions and key decisions for the development of the draft Annual Plan 2019/20 and Consultation Document.

Since that meeting the following has occurred:

1. An indicative cost range for the kerbside recycling and kerbside rubbish service has been received from the consultants who are working on a procurement strategy for the Council. This cost range is significantly higher than what was estimated in the WMMP consultation. The recycling contract report in this agenda outlines in detail the new funding and budget requirements. Officers sought direction from Councillors at a seminar on 19 March 2019 on how these new costs could be introduced in to budgets to minimise the rating impact. It is intended that the rating impact would be smoothed over a three year period (see the financial implications section in this report for more details).

2. Officers have further reviewed the schedule of fees and charges and are recommending the following amendments be made to the fees and charges schedule:

Business unit	Charge	Proposed 19/20 charge (incl GST)	Reason for change
Environmental Health	Amendment of Food Control Plan Registration (per hour)	$180	Charge description now includes ‘per hour’
Environmental Health	Amendment of National Programme Registration (per hour)	$180	Charge description now includes ‘per hour’
Environmental Health	Verification follow up (per hour)	$155	New fee introduced based on Ministry of Primary Industry recommendation
Planning Support Services	Digital property file ~~(scanned on an ad hoc basis, if scanning less than 15 minutes no charge)~~	$95	Remove ‘scanned on an ad hoc basis, if scanning less than 15 minutes no charge’ Charge has been reduced from $250 to $95 to provide the ability to recover property file administration costs

Rates increase

At the Council meeting on 15 March 2019 the average rates increase was 5.9%. The increased likely cost for the new kerbside recycling contract has an impact of 3% on rates. In the consultation document, as per direction from Councillors, a part pay option is proposed to reduce the impact to 1.3% in 2019/20. The Consultation Document proposes an average rates increase of 6.4% over the 2018/19 rates level.

Information for consultation

The consultation topics are:

· Implementation of enhanced kerbside recycling and rubbish collection services,

· Water projects,

· Regional Disaster Relief Trust,

· the Whakarire Revetment, and

· applications to the Provincial Growth Fund.

The Consultation Document also signals the timing changes to the capital works programme.

The following documents have been prepared as supporting information for the Consultation Document:

3.3 Issues

The Central Governments Provincial Growth Fund (PGF) was created with a $3billion fund to stimulate and provide jobs to the New Zealand regions. The Hawkes Bay councils have collectively being working together on applications to this fund to seek funding for key projects that meet the objectives of the PGF.

The following projects will be noted in the Annual Plan Consultation document as Council has submitted applications for these projects

- Maraenui Activation

- Inner Harbour feasibility

- Regional Park

- Westshore

The Maraenui and Inner Harbour projects were both included in the Council’s Long Term Plan, however the funding provided by the PGF will allow for better outcomes for these projects. Council has considered the benefits in obtaining this funding for the projects, but recognises that it may be required to undertake further consultation with the public depending on the outcome from the application. It is anticipated that the first round of announcements for Hawke’s Bay projects are likely to be made during May 2019.

Any additional ongoing costs as a result of the larger projects submitted to the fund have not been included in the Annual Plan 2019/20. It would be anticipated that the funding from the PGF would be fixed and Council would need to be aware that it would be responsible for carrying any project funding shortfalls (if any).

3.4 Significance and Engagement

Council has assessed that there are material and significant changes from the 2018-28 Long Term Plan for the 2019/20 year and that these matters will be consulted on as per the Consultation Document (Attachment G).

The consultation and submission period for the Annual Plan 2019/20 is Monday 8 April 2019 to noon Monday 13 May 2019. Submissions can be made online on the Council website. A flyer will be sent to all households outlining the process and how they can provide their feedback.

Councillors can engage with the community via three community meetings on the Annual Plan 2019/20. There will be no formal hearings prior to the deliberations process. As well as the three community meetings, there will also be a funding request meeting prior to the Council deliberations. Council will consider all feedback from the community, received both online and from the meetings, when making its final decisions on the Annual Plan 2019/20. Community meetings will occur on:

· Monday 15 April 2019, 6-7pm, Small Exhibition Hall, Napier Conference Centre, Napier War Memorial Centre

· Wednesday 17 April 2019, 11am-12 noon, Greenmeadows East Community Hall

· Thursday 2 May 2019, 6-7pm, Living Waters, Tamatea

The funding request meeting will occur at 9.00am, Wednesday 29 June 2019, Large Exhibition Hall, Napier Conference Centre, Napier War Memorial Centre, Marine Parade, Napier.

Council deliberations and resolution to proceed and complete the final Annual Plan will follow the funding request meeting on Wednesday 29 May 2019.

Council adoption of final Annual Plan will be Friday 28 June 2019.

3.5 Implications

Financial

There is an ongoing impact to rates from the increased recycling costs. In the Consultation Document, Council’s preferred option is a part pay option to smooth the rates impact bringing the average rate increase to 6.4%. The other option is to fully pay now however this will result in a breach of our self-imposed rates affordability limit for 19/20 by approximately 1% (an average rates increase of 8% on 18/19).

The impact of any of the changes proposed in 19/20 on rates for 20/21 will be considered in the development of the 20/21 budget.

Social & Policy

N/A

Risk

Noted in the paper brought to Council on 15 March 2019 – Proposal for Draft Annual Plan 2019/20 and Consultation Material.

3.6 Options

a. Approve the supporting information and Consultation Document.

b. Do not approve the supporting information and Consultation Document.

c. Approve in part the supporting information and Consultation Document.

3.7 Development of Preferred Option

Approve the supporting information and Consultation Document. A robust process for budget development has been undertaken.

3.8 Attachments

a Fees and Charges 2019/20 (Under Separate Cover)

b Long Term Plan 2018-28 Major Projects Update (Under Separate Cover)

c FAQs - Water (Under Separate Cover)

d FAQs - Waste (Under Separate Cover)

e Capital Progamme Changes (Under Separate Cover)

f What you get for your rates dollar (Under Separate Cover)

g Annual Plan 2019/20 Consultation Document (Under Separate Cover)

h Draft Annual Plan 2019/20 (Under Separate Cover)

Meeting Date:	Tuesday 2 April 2019
Time:	2.00pm
Venue:	Graeme Lowe Stand Corporate Lounge 2 McLean Park Latham Street Napier

Council Members	Mayor Dalton (In the Chair), Councillors Boag, Brosnan, Dallimore, Hague, Jeffery, McGrath, Price, Tapine, Taylor, White, Wise and Wright
Officer Responsible	Chief Executive
Administrator	Governance Team
	Next Council Meeting Tuesday 16 April 2019