Council Briefing: Annual Plan. What we are covering today. Section 1: The Annual Plan process LTP vs. current Position Statement
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1 Council Briefing: Annual Plan What we are covering today Section 1: The Annual Plan process LTP vs. current Position Statement Section 2: Possible Scenarios Next steps 1
2 The Annual Plan Process Annual Plan 2019/20 process Annual Plan 2019/20 is an update to Year 2 of the LTP budget for that financial year Consultation with the public is only required if there are material changes to the LTP (as per Significance and Engagement Policy) Council can make the decision to consult even if it's not deemed necessary If there are no material changes and it isn t consulted on, an annual plan is still drafted, adopted, audited and provided to the public; It is considerably cheaper to not consult unnecessarily Any non-material changes are highlighted in the Annual Plan Annual Plan needs to be adopted by 30 June
3 LTP vs Current LTP Position Key Components of LTP Investment in IT to minimise risk. Inflation only increase for Insurance costs. Budgeted for medium growth in land unit development. Limited Staff growth. Elected Member Remuneration. No provision for Riskpool costs. Current Position Why gaps have appeared Software purchase budgeted, but license fees not planned for. Professional Liability costs increased exponentially Subdivision development and land use consents exponentially increased and more complex. Council not meeting 20 day standard. Expenditure on planning consultants increased due to difficulty securing planning staff. Salary increase Council has been notified as a guarantor for LGFA of monies owing on behalf of Riskpool insurance. Position statement Various savings in the LTP Budget have been identified in the 2019/20 AP to maintain the approved LTP increase of 5.26%. These budget adjustments would result in continued underperformance against regulatory requirements. Some additional impacts include: Resource Consent performance will be maintained at current, below regulatory requirement levels; Not all assets will be covered by depreciation; Local Share not funded; District Plan elements deferred/delayed; and IT projects delayed. 3
4 There has been an exponential increase in resource consents for land subdivision and other consents Anticipated subdivision activity has exceeded budgeted levels Increased complexity of Resource Consents mean more are being notified and thus using staff resources and legal fees Planning staff are difficult to attract, recruit and retain The Rates Funded Proportion of Resource Consents is 33% - when processing quantities, time and costs go up, so do rates. Risk of not meeting Government Standards 4
5 5
6 (not shown in other graphs) 6
7 (not shown in other graphs) Identified Scenarios Status Quo: Maintain the budget as per the position statement. However, in this scenario KDC will continue to operate below regulatory requirements. Scenario Two: Model transfer of consultant spend to internal resources to increase capacity to meet demand and regulatory requirements. Scenario Three: Additional expenditure above Scenario Two to meet demand of Mangawhai Central Development. 7
8 Next Steps 1. Consult or not consult decision at the December Council meeting 2. If consult: Draft consultation document and engagement plan presented to 4 February briefing Adopt CD for consultation at February Council meeting Consultation in March Draft annual plan for adoption at June Council meeting 3. If not consult: Engagement plan with public to 4 February briefing Draft annual plan for adoption at June Council meeting 8
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