Meeting of Council (Te Huinga Tu)

Transcription

1 Council Members Chairman Ali Timms Cr Nicol Horrell (Deputy) Cr Ross Cockburn Cr Neville Cook Cr Rowly Currie Cr Robert Guyton Cr Grant Hubber Cr Peter Jones Cr Lloyd McCallum Cr Marion Miller Cr Jan Riddell Cr Maurice Rodway Meeting of Council (Te Huinga Tu) 9.00 am 30 September Welcome (Haere mai) 2. Apologies (Nga Pa Pouri) A G E N D A (Rarangi Take) 3. Public Forum, Petitions and Deputations (He Huinga tuku korero) 4. Confirmation of Minutes (Whakau korero) (a) Organisational Performance and Audit Committee 14 September Notification of Extraordinary and Urgent Business (He Panui Autaia hei Totoia Pakihi) 5.1 Supplementary Reports 5.2 Other NB: Councillors are reminded to advise the Chairman, at least a day prior to the meeting, of your intention to raise any matters. 6. Questions (Patai) 7. Staff Report - 16/C/70 Item 1 - Draft Annual Report 2015/ Item 2 - Rates Setting Levies 2016/ Extraordinary and Urgent Business (Panui Autaia hei Totoia Pakihi) 9. Public Excluded Business (He hui Pakihi e hara mo te iwi) K R Swinney Acting Director of Corporate Services RECOMMENDATIONS IN COUNCIL REPORTS ARE NOT TO BE CONSTRUED AS COUNCIL POLICY UNTIL ADOPTED BY COUNCIL

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3 Item /16 Annual Report MORF ID: A Strategic Direction: Report by: Ken Swinney, Acting Director of Approved by: Rob Phillips, Chief Executive Corporate Services Executive Approval: Rob Phillips, Chief Executive Purpose For Council to approve the amended 2015/16 Annual Report to be adopted at its meeting on 5 October Summary Council is asked to review the amended draft Annual Report for 2015/16 and Draft Annual Report Summary and, following any further amendments if necessary, forward the draft document to the Council meeting on 5 October 2016 for adoption. Recommendation It is recommended that Council consider the content of the amended Draft Annual Report for 2015/16 and Draft Annual Report Summary and, following any further amendments if necessary, resolve to forward the draft document to the Council meeting on 5 October 2016 for adoption. Report The initial draft report and draft report summary was presented to the Organisational Performance and Audit Committee for consideration on 14 September Brett Tomkins and Sarah Osbourne of Deloitte and Bruce Robertson of Morrison Low were present at the meeting. Mr Robertson made a number of suggestions on the content and layout of the draft Annual Report in order to make the highlights and messaging clearer. Given that the changes to the draft document were substantial, the Committee felt that it would be appropriate to have a further meeting to present an amended Draft Annual Report for consideration. The following changes have been made: Top 10 Results This has been added to the front of the document, in a pictogram format. Section 1 The message from the Chairman and Chief Executive has been removed from the full report and now sits in the Summary document. Page 3

4 Section 2 The reports on Opportunities for Māori to contribute to decision-making and Collaboration across Councils Shared Services have been moved to Section 6. Future challenges were added to each of these reports. Section 3 In each of the Groups of Activities 1 to 5, key results and future challenge panels were added, plus some words were added to most, but not all, of the Not Achieved results in the statements of service performance (SSP). The wording in SSP 2 of Activity 1 was also reordered. In Activity 4(a), the narrative of the velvetleaf incursion was changed to a pictogram. Financial Results All financial results have now been included in the draft document. Annual Report Summary Consequential adjustments were made to the Summary document as a result of changes to the main document. Views of Affected Parties There are no matters in this report which require consideration under this heading. Compliance with Significance and Engagement Policy There are no issues within this report which trigger matters in this policy. Legal Compliance This report and the associated recommendations comply with the appropriate statutory requirements placed upon the Council. Consistency with Council s LTP/Annual Plan/Policy/Strategy This report is consistent with Council policy. Financial and Resource Implications There are no additional financial or resource implications. Conclusion Council is asked to consider the amended draft Annual Report for 2015/16 and Draft Annual Report Summary and, following any further amendments if necessary, forward the draft documents to the Council meeting on 5 October 2016 for adoption. The audit formalities can be completed after its adoption. Page 4

5 Attachments 1. Draft Annual Report 2015/16 (separate attachment) 2. Draft Annual Report Summary 2015/16 (distributed separately) Page 5

6 Item 2 Rates Setting Levies 2016/17 MORF ID: A Strategic Direction: Rates Setting Report by: Phil Culling, Finance Approved by: Ken Swinney, Acting Corporate Manager, Services Director Executive Approval: Rob Phillips Chief Executive Purpose For Council to set and assess the 2016/17 rates. Summary The Local Government (Rating) Act 2002 (Section 23) outlines the procedure to be followed when a Council sets its rates. Rates must be set by a resolution of Council and relate to a financial year and be set in accordance with the relevant provisions of the Council s Long-term Plan for that financial year, in this instance 1 July June 2017, details of which are documented in the Council s 2016/17 Annual Plan. This report sets out the information and recommendations required for Council to properly set the 2016/17 rates. Recommendation It is recommended that Council resolve to set and assess the 2016/17 rates, as calculated in the following schedule and according to the following conditions: 1 General Rates 1.01 For providing revenue for the general purposes of the Council in the year commencing 1 July 2016 and ending on 30 June 2017, as authorised by Section 13 of the Local Government (Rating) Act 2002, to set and assess the following rates to raise $4,873,909. Equalised rate per dollar of on the Capital Value of all rateable property located within the boundaries of the Southland District Council. Equalised rate per dollar of on the Capital Value of all rateable property located within the boundaries of the Gore District Council. Equalised rate per dollar of on the Capital Value of all rateable property located within the boundaries of the Invercargill City Council For providing revenue for the general purposes of the Council relating to dairy activity, on a differential basis, in the year commencing 1 July 2016 and ending on 30 June 2017, as authorised by Section 13 of the Local Government (Rating) Act 2002, to set and assess the following rates to raise $139,090. Page 6

7 Equalised rate per dollar of on the Capital Value of all rateable dairy property located within the boundaries of the Southland District Council. Equalised rate per dollar of on the Capital Value of all rateable dairy property located within the boundaries of the Gore District Council. Equalised rate per dollar of on the Capital Value of all rateable dairy property located within the boundaries of the Invercargill City Council Uniform Annual General Charge For providing revenue for the general purposes of the Council in the year commencing 1 July 2016 and ending on 30 June 2017 as authorised by Section 15 of the Local Government (Rating) Act 2002, to set and assess the following rates to raise $3,404,540. A Uniform Annual General Charge of $ Works and Services Rates 2.01 Biosecurity For providing revenue for the general purpose of pest plant and animal control surveillance and administration within the Council s region in the year commencing 1 July 2016 and ending 30 June 2017, as authorised by Section 16 of the Local Government (Rating) Act 2002, to set and assess the following rates to raise $2,340,335. Equalised rate per dollar of on Land Value of all rateable property located within the boundaries of the Southland District Council. Equalised rate per dollar of on Land Value of all rateable property located within the boundaries of the Gore District Council. Equalised rate per dollar of on Land Value of all rateable property located within the boundaries of the Invercargill City Council Land Sustainability For providing revenue for the general purpose of encouraging wise land use by promoting best management practices by example and education within the Council s region in the year commencing 1 July 2016 and ending 30 June 2017, as authorised by Section 16 of the Local Government (Rating) Act 2002, to set and assess the following rates to raise $1,971,545. Equalised rate per dollar of on Land Value of all rateable property located within the boundaries of the Southland District Council. Page 7

8 Equalised rate per dollar of on Land Value of all rateable property located within the boundaries of the Gore District Council. Equalised rate per dollar of on Land Value of all rateable property located within the boundaries of the Invercargill City Council Catchment Rating For the purpose of providing revenue for activities, maintenance and improvement control works and services in the various rating districts listed below in the year commencing 1 July 2016 and ending 30 June 2017, as authorised by: (i) (ii) s13-14 Local Government (Rating) Act 2002 to set and assess rates according to the classifications or differentials for each individual rating district; and s16-17 Local Government (Rating) Act 2002, to set and assess rates using a classification scheme established under s40-41 or s92(1) Rating Powers Act 1988 that is provided for and saved under s146 Local Government (Rating) Act 2002: Drainage and River Control rates Section Scheme Duck Creek Works rates on land area to raise $64,939 for drainage maintenance Class Ratio Rate per Hectare A 24 $ B 20 $ C 8 $ D 4 $ E 2 $ F 1 $ Scheme Otepuni Creek Works rates on land area to raise $18,878 for drainage maintenance Class Ratio Rate per Hectare A 6 $ B 5 $ C 4 $ D 3 $ E 2 $ F 1 $ Page 8

9 2.06 Scheme Upper Waihopai River Works rates on land area to raise $19,655 for drainage maintenance Class Ratio Rate per Hectare A 6 $ B 5 $ C 4 $ D 3 $ E 2 $ F 1 $ Scheme Upper Waikawa River Works rates on land area to raise $9,370 for stream bank protection Class Ratio Rate per Hectare A 15 $ B 10 $ C 9 $ D 6 $ F 3 $ Scheme Upper Waikiwi River Works rates on land area to raise $16,421 for drainage maintenance Class Ratio Rate per Hectare A 22 $ B 12 $ C 8 $ D 6 $ E 2 $ F 1 $ U1 20 $ U2 10 $ Scheme Waituna Creek Works rates on land area to raise $151,427 for drainage maintenance Class Ratio Rate per Hectare A 8 $ B 7 $ C 6 $ Page 9

10 D 5 $ E 3 $ F 1 $ BCL 1 $ BCM 1 $ Scheme Clifton Drainage Works rates on land area to raise $4,242 for drainage maintenance Class Ratio Rate per Hectare A 20 $ B 15 $ Scheme Invercargill Flood Control Class % Rate per Dollar M1 16 $ M2 8 $ M3 1 $ M4 75 $ Works rates on land value to raise $461,604 for maintenance of flood control structures 2.12 Scheme 434 Waiau Rating District Works rates on land value to raise $84,126 for flood control, willow control and drainage maintenance Class Ratio Rate per Dollar C4 1 $ D1 600 $ D2 125 $ E1 10 $ E2 60 $ E3 700 $ F1 1 $ F2 4 $ F3 35 $ Page 10

11 2.13 Scheme Lake Hawkins Works rates on land value to raise $109,893 for drainage maintenance, pumping operations and pump replacement reserves Class Ratio Rate per Dollar A 5 $ B 4 $ C 1 $ Scheme Oreti Rating District Works rates on land value to raise $982,018 for flood control and drainage maintenance (Land within Southland District Council) Class Ratio Rate per Dollar A1 3 $ A2 2 $ A3 2 $ A $ A6 1 $ B1 7 $ B2 7 $ B3 7 $ B4 3 $ B6 1 $ C1 3 $ C2 2 $ C3 1 $ C $ C $ E2 1 $ F1 8 $ F2 2 $ F $ (Land within Invercargill City Council) A2 2 $ A7 2 $ B2 7 $ B5 3 $ B $ C1 3 $ C2 2 $ Page 11

12 E2 1 $ F2 2 $ F $ Scheme Waihopai River Works rates on land value to raise $33,646 for drainage maintenance (Land within Southland District Council) Class Ratio Rate per Dollar A 9 $ B 6 $ C 4 $ D 3 $ E 2 $ F 1 $ (Land within Invercargill City Council) A 9 $ B 6 $ C 4 $ D 3 $ E 2 $ F 1 $ Scheme Makarewa Rating District Works rates on land value to raise $234,099 for flood control and drainage maintenance (Land within Southland District Council) Class Ratio Rate per Dollar A2 3 $ A3 2 $ A4 1 $ B1 6 $ B2 5 $ B3 5 $ B4 6 $ B5 5 $ B6 5 $ B7 6 $ B8 35 $ C2 3 $ C3 2 $ C4 1 $ Page 12

13 F1 1 $ (Land within Gore District Council) A4 1 $ B3 5 $ F1 1 $ (Land within Invercargill City) F1 1 $ Scheme Mataura Rating District Works rates on land value to raise $1,227,428 for flood control and drainage maintenance (Land within Southland District Council) Class Ratio Rate per Dollar A1 1 $ A2 1 $ B1 25 $ B5 15 $ B6 5 $ B7 5 $ B8 5 $ C1 5 $ C2 3 $ C3 2 $ C4 1 $ C5 5 $ D1 1 $ D2 1 $ E1 3 $ E2 2 $ E5 1 $ E6 1 $ E7 1 $ F1 1 $ F $ (Land within Gore District Council) A3 2 $ B2 25 $ B3 10 $ C1 5 $ C2 3 $ Page 13

14 C3 2 $ C4 1 $ E1 3 $ E2 2 $ E4 3 $ F1 1 $ F2 3 $ F3 3 $ F4 3 $ Scheme Aparima Rating District Works rates on land value to raise $327,165 for flood control and Drainage maintenance Class Ratio Rate per Dollar A1 4 $ A2 3 $ A3 20 $ B2 5 $ B3 4 $ B4 2 $ C1 3 $ C2 2 $ C3 1 $ E2 1 $ F1 5 $ F2 1 $ F $ F4 2 $ Scheme Waimatuku Rating District Works rates on land value to raise $56,778 for drainage maintenance Class Ratio Rate per Dollar C1 3 $ C2 2 $ C $ F1 1 $ F $ F $ Page 14

15 2.20 Scheme 450 Te Anau Basin Rating District Works rates on land value to raise $233,792 for flood control and drainage maintenance Class Ratio Rate per Dollar B1 200 $ C4 10 $ per ha D1 15 $ D3 16 $ E1 150 $ E3 750 $ E4 300 $ E5 750 $ F1 5 $ F2 10 $ F3 10 $ District Rated by Annual Maintenance Charge As authorised by Section 11 Soil Conservation and Rivers Control Amendment Act Scheme 653 Lower Waikawa River To raise $3, for willow control maintenance 3 Southern Pest Eradication Society rate For collecting revenue for the Southern Pest Eradication Society (SPES) in the year commencing 1 July 2016 and ending on 30 June 2017, as authorised by Section 16 of the Local Government (Rating) Act 2002, to set and assess the following rates to raise $255,945. Rates will be assessed on all rating units greater than or equal to 4 ha contained in the Southland region, south of the Mimihau Stream and east of the Mataura River. The rate will be $2.60 per hectare. 4 GST All calculations include Goods and Services Tax at 15.0% as required by the Goods and Services Tax Act Page 15

16 5 Payment Dates As authorised by Section 24 Local Government (Rating) Act 2002 all rates for the year 1 July 2016 to 30 June 2017 shall be payable at the Southland Regional Council in one instalment due on 25 November A penalty charge of 10% will be imposed on any rates remaining unpaid after 25 November Penalties As authorised by Section 57 of the Local Government (Rating) Act 2002 the following penalties for the late payment of rates will apply. 6.1 Current Rates A penalty of 10% will be added to all 2016/17 rates remaining unpaid after 25 November Rates in Arrears as at 1 January 2017 A penalty of 10% will be applied to all rates (including penalties) from previous financial years remaining unpaid on 1 January 2017 (this penalty excludes current 2016/17 rates). 6.3 Rates in Arrears as at 1 July 2017 A penalty of 10% will be applied to all rates (including penalties) from previous financial years remaining unpaid on 1 July 2017 (this penalty includes 2016/17 rates unpaid at 1 July 2017). 7 Rate Records and Valuation Roll The Rate Records and Valuation Roll for the district of Environment Southland are available for inspection, free of charge at Regional House corner North Road and Price Street, Waikiwi, Invercargill during the hours of 8.00 am to 5.00 pm Monday to Friday (excluding Public Holidays). 8 Annual Plan The 2016/17 Annual Plan is available for public inspection during normal office hours. In addition, a copy will be provided on request or is available on the Council s website Page 16

17 Report Background This report is prepared for Council in order to set the rates on properties for the year 1 July 2016 to 30 June Section 23 of the Local Government (Rating) Act 2002 states how rates are set. It states: 23 Procedure for setting rates (1) Rates must be set by a resolution of the local authority. (2) Rates set by a local authority must (a) (b) relate to a financial year, or part of a financial year; and be set in accordance with the relevant provisions of the local authority s long-term plan and funding impact statement for that financial year. The section goes on to set out terms and conditions of the ability to set a rate not provided for in the Long-term Plan and to require the delivery, within 20 working days, of a copy of the resolution to the Secretary of Local Government. Section 24 requires the resolution to state the financial year to which the rate applies and the date on which the rate must be paid. The rates set out in this report and in the proposed resolution are the GST inclusive amounts of the rates set out in the plan. There is no Biodiversity TbFree NZ rate this year. Section 23 of the Rating Act 2002 states that a local authority must meet the following requirements before it can set its rates under the Act: That Council has prepared and adopted a Long-term Plan for the financial year to which the rates apply Adopted its 2016/17 Plan on 30 June 2016 That the rates set are in accordance with the relevant provisions of Council s Plan There have been no changes to the rates as set out in the plan. Therefore both of the criteria have been met. The formal rate setting resolution is the end result of a number of previous Council decisions and statutory requirements, including meetings to prepare the 2016/17 Annual Plan and adoption of the plan. In this current year, there have been 1,625 merged properties, most of which were received in June and July. This has affected the calculation of the UAGC, which will now be $75 compared with $74.40 in the adopted Annual Plan. Page 17

18 Equalisation As per Council s requirement, and as indicated in pages 36/37 of the 2016/17 Annual Plan, the values used for the rates have been adjusted or equalised, to take into account the differing valuation dates of the three territorial authorities in the region. The most recent revaluation was in the Southland District Council in July The table below sets out the percentage adjustments used: Capital Values (including dairy farms) Actual Capital Value Quotable Value % Increase % QV SDC 20,147,406,500 20,211,073, GDC 3,146,228,680 3,410,566, ICC 7,149,432,808 7,359,255, $30,443,067,988 $30,980,894, Land Values (including dairy farms) Actual Land Value Quotable Value %Increase % QV SDC 14,216,448,600 14,255,849, GDC 1,856,205,700 2,157,252, ICC 2,497,688,650 2,560,321, Views of Affected Parties $18,570,342,950 $18,973,422, Council considered the views of affected parties during the Annual Plan process. Compliance with Significance and Engagement Policy This has been specifically complied with during the Annual Plan process. Legal Compliance This report is prepared taking into account the requirements of Local Government Rating Act and Local Government Act. Consistency with Council s LTP/Annual Plan/Policy/Strategy This report is consistent with setting Council s rates in accordance with the second year of the Long-term Plan. Financial and Resource Implications Property rates account for $14.8 million, or 49% of Council s revenue for 2016/17. Rates are a property tax and have to be set and assessed using the specific requirements of the Local Government Rating Act. Page 18

19 Council has one instalment for rates with the last day of payment being 25 November A seasonal overdraft is used prior to this to fund operating expenditure until rates are received. Page 19