Council Budget Annual Plan agenda 19 03 13 · 2014-07-02 · COUNCIL BUDGET / ANNUAL PLAN MEETING Commencing at 9.00am on Tuesday 19 March 2013 Council Chamber ... highlights the

COUNCIL BUDGET / ANNUAL PLAN MEETING

Commencing at 9.00am

on

Tuesday 19 March 2013

Council Chamber District Council Building

2 King George Place Timaru

TIMARU DISTRICT COUNCIL

Notice is hereby given that a meeting of the Timaru District Council to consider the 1 July 2013 to 30 June 2014 Budget and Annual Plan, will be held in the Council Chamber, District Council Building, 2 King George Place, Timaru on Tuesday 19 March 2013 at 9.00am. Please bring your draft budget (coloured document), draft annual plan (‘2 Work Programme’) and your Long Term Plan to the meeting LOCAL AUTHORITIES (MEMBERS’ INTERESTS) ACT 1968 Councillors are reminded that if you have a pecuniary interest in any item on the

agenda, then you must declare this interest and refrain from discussing or voting on

this item, and are advised to withdraw from the meeting table.

Peter Nixon CHIEF EXECUTIVE

Timaru District Council Council meeting # 811500 19 March 2013


BUDGET / ANNUAL PLAN MEETING

19 MARCH 2013

AGENDA

Item No

Page No

1 Opening Prayer – Mary-Jane Konings, Timaru Presbyterian Parish

2 Apologies

3 1 Annual Plan and Budget for the Period 1 July 2013 to 30 June 2014

4 13 Interview – 2pm Aoraki Development Business and Tourism 2013/14 Budget

5 17 Aoraki Development Business and Tourism 2013/14 Draft Statement of Intent

6 25 Social Housing Upgrades

7 29 Timaru District Holdings Limited Directorship

Timaru District Council Council Meeting # 811500 1 19 March 2013


FOR THE MEETING OF 19 MARCH 2013

Report for Agenda Item No 3 Prepared by Mark Low Tina Rogers Corporate Planning Manager Group Manager Corporate

Services Annual Plan and Budget for the Period 1 July 2013 to 30 June 2014 (File F1/4)

_______________________________ Purpose of Report The purpose of this report is to present the draft budget, Annual Plan and fees and charges to the Council, (two documents are circulated separately). Background The draft budget document varies from the budget that has been presented previously in the Long Term Plan (LTP). The Local Government Act 2002 Section 95 (5) states: “The purpose of an annual plan is to— (a) contain the proposed annual budget and funding impact statement for the year

to which the annual plan relates; and (b) identify any variation from the financial statements and funding impact

statement included in the local authority's long-term plan in respect of the year; and

(c) support the long-term plan in providing integrated decision-making and co-ordination of the resources of the local authority; and

(d) contribute to the accountability of the local authority to the community; and (e) extend opportunities for participation by the public in decision-making

processes relating to the costs and funding of activities to be undertaken by the local authority.”

Council is required to prepare an Annual Plan for the 2013/14 year. This is founded on year two of the 2012-2022 LTP which was adopted by Council in June 2012, and variations from the LTP 2012 – 22 are explained in the Annual Plan document. The next Long Term Plan is due for preparation for the ten years beginning 1 July 2015. Draft Annual Plan 2013/14 Overview Groups of Activities A summary for each of the groups of activities is attached in Appendix B. This highlights the Emerging Issues and Expected Changes for each group, a summary of notable operating projects, significant proposed change to rates and fees and how the group fits with the new purpose definition included in the Local Government Act 2012 Amendment. Information on levels of service and capital projects can be found in the Section Two draft of the Annual Plan.


Major Projects Significant projects planned in 2013/14 are: - Timaru District Wastewater Treatment Plant Upgrade – Continuation of $17m

upgrade the District’s Wastewater Treatment Plant including installation of oxidation ponds, pipelines and pump stations.

- Over $18m of water network asset renewals and upgrades, including network upgrades on the Downlands and Te Moana schemes.

- Ongoing upgrading of district parks and reserves, including playgrounds, park furniture and walkways.

- Ongoing Washdyke roading network improvements. - Over $10m of capital expenditure on the district’s transport network including

resurfacing roads and footpaths, seal extension and bridge renewals. Projects of the note include seal extension, the commencement the conversion of the Factory Road bridge to two lanes, Temuka roading renewals and initial scoping of the district Central Business District renewals project aimed at refreshment of the district’s CBD.

- Improvements of stormwater infrastructure including projects in Timaru and Geraldine.

- Other sewer projects, including the Domain Avenue, Temuka sewer renewal and Queen Street wetwell refurbishment.

- Exhibition upgrade at the museum. - Temuka Swimming Pool renewals including heating system upgrade and water

main renewal. Rates Impact The preliminary draft annual plan shows the 2013/14 increase of 4.38% including inflation. The LTP 2012-22 proposed a rate increase of 6.24% excluding inflation. District wide rates are proposed to increase by 2.00%. Targeted rate increases include: Sewer charge increases by $33 to $348 Urban water charge increases by $5 to $234 Aquatic Centre charge increases by $4 to $106 Waste Management charge increases by $10 to $319. Fees and charges for some Council services are proposed to increase to meet increased costs of some services and reflect required cost recovery. Fee schedules are included in the budget document and changes summarised in Appendix B. Extensive evaluation and scrutiny of the approved 2012/13 budget and 2013/14 proposed budget has been undertaken by the Management Team and staff in light of the current economic times. Appendix A details the projects that have been reviewed by Management based on recommendations from the Council and staff. These are referred to as the “White Pages”. The majority were referred to this Annual Plan from the LTP process in March and June 2012. Management has prioritised these based on the following: High Statutory obligation or for consistency Medium Highly desirable Low Desirable.


Given the Council’s objectives, the management team has been mindful of the following objectives: 1. To meet statutory requirements such as Drinking Water Standards and

Emissions Trading Scheme; 2. Maintain the physical infrastructure; 3. To provide a level of service that should at least maintain the status quo unless

there are reasons for change; and 4. Provide a well-run professional organisation for ratepayers and other

stakeholders; 5. Minimise rate increases; 6. The identification of additional items on a priority basis. The level of discretionary expenditure in the budget is very low. Any further budget reductions are likely to affect levels of service and therefore have some impact on the community. Annual Plan Timetable The approved timetable for the consideration and adoption of the 2013/14 Annual Plan is as follows: 11-13 March Budget meetings of Community Boards 19-21 March Council meets to consider Preliminary Draft Annual Plan and

Budget 9 April Council adopts Draft Annual Plan 13 April Draft Annual Plan available. Submissions open 13 May Draft Annual Plan submissions close 4-5 June Draft Annual Plan submissions hearing and decisions 25 June Council meeting to adopt Annual Plan and Rates Resolution. Conclusion The preliminary draft annual plan and budget continues the implementation of the 2012 – 22 LTP work programme. It proposes an increase in the Council’s rate requirement of 4.38% for 2013/14 (compared with 6.24% + inflation in the 2012 LTP). Recommendation

That the 2013/14 Annual Plan and Budget be considered.


Appendix A

Additional Expenditure Requests for 2013/14 Budget Mgmt Source of request Operating 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Source of Funds Explanation

/CapitalRECREATION & LEISUREArt Gallery

Wages & electricity to open 4 hours longer at weekend Low Council O 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Rates Extend opening hours. Easier for some tourists to visit.

MuseumPublic Programmes Officer Low Council O 14,400 14,400 14,400 14,400 14,400 14,400 14,400 14,400 14,400 14,400 Rates Referral from Council LTP Meeting.

ParksSport & Recreation Strategy Medium Council O 40,000 Rates Referral from Council LTP Meeting.Sport SC Funding Medium Council O 10,000 Rates Referral from Council LTP Meeting.Development Plan for Sporting facilities/sports groups in Geraldine Low Council O 10,000 Rates Referral from Council LTP budget Meeting.

Swimming PoolsAquatics revenue - increase in adult admission price Medium Staff O -50,000 -50,000 -50,000 -50,000 -50,000 -50,000 -50,000 -50,000 -50,000 -50,000 Rates Increase in Adult admission price by 50 cents to $5.50

COMMUNITY SUPPORTEconomic Development

Events Support Low Council O 50,000 Rates Referral from Council LTP Meeting.

Civil Defence

NZRT Training & Equipment HighResource Planning & Reg

Committee O 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 RatesContribution to ensure continuation of NZRT in the district. Prevously undertaken by Red Cross.

ROADING & FOOTPATHSSubsidisable Roading

Unsealed Road Maintenance High Staff O 100,000 Rates Increase in level of service on unsealed rural roadsSeal Extensions (budget reduction) Medium Staff C -330,000 Rates/Depreciation Reduction in Seal Extension programme

OTHERContingency Fund replenishment Medium Council O Undefined Rates Projected balance 30/6/13 is $451,738Disaster Recovery Fund replenishment Medium Council O Undefined Rates Projected balance 30/6/13 is $1,708,578


Appendix B Group: Democracy Activities: Governance and Leadership

1.0 Emerging Issues and Expected Changes • Outcomes of 2012 Representation Review (currently with Local Government

Commission) • Proposed legislative change for Local Government across wide spectrum of

activities, including Local Government Act, Resource Management Act, Food Act, Land Transport Management Act

• New purpose of Local Government as included 2012 Local Government Amendment Act

• 2013 elections • New item added for development of the required Liquor Licensing Policy • Elected member remuneration for after the October 2013 elections has not yet

been determined by the Remuneration Authority.

2.0 Levels of Service Refer to 2012-22 LTP. 2013/14 year included in Section Two: Activities

3.0 Operating Projects of note 2013/14

$000’s 2014/15 $000’s

2015/16 $000’s

Elections 93 Identity Development 50 Website Development 50 Community Survey 25 25 Long Term / Annual Plan consultation/development

15 25 10

Liquor Licensing Policy/Training 50

4.0 Capital Projects Refer to 2012-22 LTP. 2013/14 year included in Section Two: Activities

5.0 Changes to Rates or Fees No significant changes.

6.0 Local Government Act (2012 Amendment) Democracy is listed in Section 10(1)(a) of the Local Government Act.


Group: Community Support Activities: Airport, Community Facilities (includes public toilets, cemeteries), Community Funding, Economic Development and District Promotions, Emergency Management, Safer Communities, Social Housing

1.0 Emerging Issues and Expected Changes • Ongoing funding pressures from reduction in funding sources and higher

community expectations. • Rapidly ageing population • Loss of funding for large portion of Safer Communities activities. In the past year,

Safer Communities has undergone substantial change due to a reduction in central government. A funding contract with the YMCA of $25k per year now partially funds youth workers.

• Ongoing ageing of social housing units and requirements for updating • Airport terminal roof requires replacement as has reached the end of its useful life.

This is a new capital project. • Temuka cemetery extension funding changed to enable bridge to be completed the

enable project to proceed.



$000’s 2014/15 $000’s

2015/16 $000’s

Nil


5.0 Changes to Rates or Fees • Social Housing – proposed increases in rentals between $5-$10 per week per unit

(or 4.3-13%). This depends on the nature, location and facilities provided in the unit.

• Airport – no changes to fees • Cemeteries – proposed increase in plot purchase charges of $25 - $80 (5.5-

10.4%), interment charges of $20 - $95 (10.5-11.6%) and concrete beams of $15 - $30 (13%). This depends on nature of purchase (e.g. single, infant, stillborn, ashes and RSA). Additional charges increased by $50 - $100 (12.5-14.3%).

6.0 Local Government Act (2012 Amendment) The Airport is a strategic asset in the Council’s Significance Policy and represents local infrastructure. Community Facilities represent community infrastructure, a core service under Section 11A of the Local Government Act. Cemeteries are legally required under the Burials and Cremations Act 1974. Community Funding and Economic Development and District Promotions are either directly or indirectly provided as local public services. Social Housing is also specifically identified as a strategic asset in the Council’s Significance Policy and represents a local public service provided cost effectively at no cost to households and businesses. Emergency Management is undertaken in accordance with the Civil Defence Emergency Management Act 2002, Forest & Rural Fires Act 1977 and as a core service under S11A(d) of the Local Government Act 2002 “the avoidance or mitigation of natural hazards”.


Group: District Planning and Regulatory Services Activities: Building Control, District Planning, Environmental Health (including Animal Control)

1.0 Emerging Issues and Expected Changes • Outcomes of proposed legislative change in the Food, Building Control and District

Planning areas • Outcomes of numerous earthquake prone building reports/reviews and subsequent

legislation • Ongoing implementation of Building Act reforms, including Building Consent

Authority 18 regulations requiring formal qualifications for Building Consent Officers • Implementation of liquor licensing reforms during 2013 • Review of Council Earthquake Prone Buildings Policy • Variations in Building and Resource Consents handled annually • Ongoing level of complaints and service requests from the community • Implementation of new Dog Control Bylaw/Policy and effect on resourcing, income

and workload • Introduction of government initiatives such as the introduction of national policy

statements or national environmental standards • Review of the Timaru District Plan and influence of government legislation on

nature of future plans • Continuation of the SNA survey beyond that specified in the LTP • High numbers of building consents resulting in additional costs and revenue. • Outcomes following recent enactment of the Sale and Supply of Alcohol Act 2012.



$000’s 2014/15 $000’s

2015/16 $000’s

SNA survey 30 30 SNA Protection 30 30 30 District Plan review 30 175


5.0 Changes to Rates or Fees • Building Control – increases in various fees of $5-$50 (4.3 - 10.3%). • District Planning – no changes to fees • Dog Control – no changes to fees • Environmental Health– no changes to fees

6.0 Local Government Act (2012 Amendment) Building Control, Environmental Health (including Animal Control) and District Planning are undertaken as regulatory functions in terms of S10(1)(b) of the Act to meet the requirements of the Building Control Act, Sale and Supply of Alcohol Act, Food Act, Resource Management Act and Dog Control Act. Processes and resourcing levels are regularly reviewed to provide a cost effective service that still meets accreditation requirements.


Group: Recreation and Leisure Activities: Cultural and Learning Facilities (including Art Gallery, Halls, Theatre Royal, Libraries, Museum), Parks, Recreation and Swimming Pools

1.0 Emerging Issues and Expected Changes • Ongoing demand for services and higher community expectations, including impact

of new technology. • Potential loss of Learning Experiences Outside The Classroom (LEOTC) funding

for the South Canterbury Museum. • Year Two delivery of Caroline Bay Trust Aoraki Centre, including aquatics and

other programmes. • Outcomes of closure of Century Pool facility and potential for development as a

facility for gym sports.



$000’s 2014/15 $000’s

2015/16 $000’s

Temuka Domain Grass Cycle Track 46


5.0 Changes to Rates or Fees • Libraries – no changes to fees • Art Gallery – no changes to fees • South Canterbury Museum – no changes to fees • Theatre Royal – Change to heating rate after the first five hours. No other changes

to fees. • Halls and Community Centres – Increase in Fairview Hall rate at the request of

Fairview Hall Committee. Changes to Westend Hall fees. No other changes to fees. • Swimming Pools – Increase in Aquatic Centre targeted rate to $106 (from $102).

No other changes to fees. • Parks, sportsgrounds and fishing huts - no changes to fees

6.0 Local Government Act (2012 Amendment) Libraries, museums, reserves, recreational facilities and other community infrastructure are specifically referenced as core services under Section 11A of the Local Government Act. Under the purpose of local government, they represent local public services.


Group: Roading and Footpaths Activities: Roading and Footpaths, Cycleways and walkways

1.0 Emerging Issues and Expected Changes • Management of road networks with no provision for escalations (flat-line budgets) • Potential change to NZTA funding criteria and ratios • Reduction in depreciation expense due to assets reaching the end of their

‘accounting’ life. Funding into the depreciation reserve has been maintained at the higher levels included in the LTP.

• Ability to undertake undergrounding is limited by Alpine Energy’s capacity to undertake the work.



$000’s 2014/15 $000’s

2015/16 $000’s

Strategic studies/Active transport 30


5.0 Changes to Rates or Fees • Roading and Footpaths/Parking Fees - no changes to fees

6.0 Local Government Act (2012 Amendment) Roading and Footpaths falls within the definition of local infrastructure (S10B) and is listed as a core service in Section 11A as network infrastructure. A large proportion of expenditure is competitively tendered to deliver the most cost effective result.

Group: Waste Minimisation Activities: Compost, Recycling and Refuse

1.0 Emerging Issues and Expected Changes • Implementation of the TDC Waste Management and Minimisation Plan. • Ongoing impact of the Emissions Trading Scheme on landfill costs • Ongoing reduced volumes to landfill.



$000’s 2014/15 $000’s

2015/16 $000’s

Nil



5.0 Changes to Rates or Fees • Waste Management Rate – Urban rate proposed to increase to $319 (from $309)

and Rural to $318 (from $308) • Waste Management Fees and charges – various changes to some fees, including

extra bin charges and replacement bins. No changes to transfer station charges.

6.0 Local Government Act (2012 Amendment) Waste Minimisation falls within the definition of S10(1)(b) of the Act as local infrastructure and a public service. It is specifically referenced under S11A(c) as a core service. Delivery of the activity is competitively tendered.

Group: Sewer Activities: Sewer

1.0 Emerging Issues and Expected Changes • Completion and commissioning of domestic Wastewater treatment upgrade • Commencement of Domain Avenue, Temuka sewer main upgrade



$000’s 2014/15 $000’s

2015/16 $000’s

Nil


5.0 Changes to Rates or Fees • Trade waste Charges – increase in disposal charges from 0.88c to $1.05 per cubic

metre (19%) • Special Liquid Waste Charges - additional charge for high solids content (increase

by$10 per cubic metre) • Sewer Uniform Annual charge – increase to $348 (from $315) (10.5%)

6.0 Local Government Act (2012 Amendment) Sewer falls within the definition of S10(1)(b) of the Act as local infrastructure. It is specifically referenced under S11A(c) as network infrastructure, a core service. Delivery of the activity is competitively tendered.


Group: Stormwater Activities: Stormwater

1.0 Emerging Issues and Expected Changes • Implementation of the outcomes from the Canterbury Natural Resources Regional

Plan (NRRP). • Development of Stormwater Management Plans.



$000’s 2014/15 $000’s

2015/16 $000’s

Nil


5.0 Changes to Rates or Fees Stormwater – no changes to fees

6.0 Local Government Act (2012 Amendment) Stormwater falls within the definition of S10(1)(b) of the Act as local infrastructure. It is specifically referenced under S11A(c) as network infrastructure, a core service. Delivery of the activity is competitively tendered.

Group: Water Supply Activities: Water Supply

1.0 Emerging Issues and Expected Changes • Orari/Waihi stockwater race scheme has closed one year earlier than specified in

the LTP. • Significant ongoing maintenance on some of the schemes (especially

Rangitata/Orari)



$000’s 2014/15 $000’s

2015/16 $000’s

Timaru Water Supply Strategy 100 Investigations for water from OWP 37 Urban Water Public Health Risk Management Plan

30



5.0 Changes to Rates or Fees • Water Supply – no changes to water charges for following schemes – Beautiful

Valley, Orari, Seadown • Water Supply – changes to water charges for following schemes:

o Downlands - Domestic – increase to $409 from $392, o Rangitata/Orari Water race scheme – increase from $15.80/hectare to

$17/hectare, o Te Moana –increase in tank charge from $343.90 to $353.70 (2.85%) o Urban water charge – increase from $229 to $234 ($5 or 2.1%)

• Other Water Charges – increase in sale price of water of 4c per cubic metre from all schemes

6.0 Local Government Act (2012 Amendment) Water Supply falls within the definition of S10(1)(b) of the Act as local infrastructure. It is specifically referenced under S11A(c) as network infrastructure, a core service. Delivery of the activity is competitively tendered.




Report for Agenda Item No 4

Prepared by Peter Nixon Chief Executive Aoraki Development Business & Tourism 2013/14 Budget

_______________________________ Purpose of Report To consider the draft budget and operating grant requested of the Council for 2013/14. Background The Local Government Act 2002 requires Council Controlled Organisations (CCO) to provide a draft Statement of Intent for Council consideration by 1 March each year. The CCO then incorporates any changes required by the Council and the final Statement of Intent must be adopted by 1 July. Options The Aoraki Development Business & Tourism’s budget can be approved as presented or be reduced so there is no increase in the Council grant. Identification of Relevant Legislation, Council Policies and Plans The Local Government Act 2002. The Council’s Long Term Plan (LTP). Assessment of Significance The matter is not deemed significant under the Council’s Significance Policy. Consultation Wendy Smith, General Manager of ADBT will be present to speak to the report. Conclusion Aoraki Development Business & Tourism has asked for an increase in the Council grant bulk funded over three years as follows: 2012/13 2013/14 2014/15 2014/16 Operational Grant 690,500 704,310 718,400 732,770 Campaign in Christchurch 30,000 30,000 0 0 720,500 734,310 718,400 732,770 No provision for an increase has been factored into the draft Council budget, and generally no inflation is provided for beyond year one. Recommendation That the Council considers for inclusion in the draft budget what the contribution to Aoraki Development Business & Tourism should be for 2013/14 (only).


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Report for Agenda Item No 5

Prepared by Peter Nixon Chief Executive Aoraki Development Business & Tourism 2013/14 Draft Statement of Intent

_______________________________

Purpose of Report To present the draft 2013/14 Statement of Intent for Aoraki Development Business & Tourism (ADBT) for consideration and adoption, attached. Background The Local Government Act 2002 requires Council Controlled Organisations (CCO) to provide a draft Statement of Intent for Council consideration by 1 March each year. The CCO then incorporates any changes required by the Council and the final Statement of Intent must be adopted by 1 July. Options The Council can approve the Statement of Intent as it is presented or approve it subject to amendments(s). Identification of Relevant Legislation, Council Policies and Plans The Local Government Act 2002. The Council’s Community Plan (LTCCP). Assessment of Significance The matter is not deemed significant under the Council’s Significance Policy. Consultation Wendy Smith, General Manager of ADBT will be present to speak to the report. Other Considerations There are no other considerations. Conclusion This draft Statement of Intent again reflects the new organisation and incorporates information and funding requirements from the previous Strategic Plan and Business Plan, and it formalises the current reporting mechanisms. This is the opportunity for the Council to influence the direction of ADBT. Recommendation That the draft Statement of Intent for Aoraki Development Business & Tourism for 2013/14 be considered and approved subject to Council’s decisions on the 2013/14 Budget.


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Report for Agenda Item No 6 Prepared by Tina Rogers Matt Ambler

Group Manager Corporate Services Property Manager Social Housing Upgrades

_______________________________ Purpose of Report At its meeting of 27 November 2012 the Policy and Development Committee considered a report from the Property Manager on capital upgrade progress and passed a resolution that included the following extract paragraph:

4. ”That the possibility of expediting the upgrade works be funded by external loan be investigated as part of the Annual Plan process.”

Background The focus of capital works has been on the conversion of baths and shubs to showers (wet area) and shower boxes. The programme for shower conversions has been a work in progress since the 2001/02 financial year and significant progress has been made. From a total of 236 units (as at February 2013) 175 conversions have been completed. Wet area showers are very beneficial for tenants with mobility issues but they are becoming expensive to install. Current costs are approximately $10,000 - $11,000 per conversion. Shower boxes by comparison have an estimated cost of $4,000 to $4,500 per unit. Timaru has the highest concentration of units with 138 in total. 38 units are awaiting conversions, mostly in those addresses where there are higher numbers, such as Woodlands Road (18), Princes Street (18), Harper Street (22) and Clyde Carr Crescent (14). Temuka has 56 units of which 17 require conversions. The main concentrations of these are at Wilkin Street and Whitcombe Street. Pleasant Point has 6 units at 7 Horton Street, 4 of which require conversion. Geraldine has been largely completed with two units left to do and Pareora which has six units, all have showers.


Insulation upgrades of our older units is also identified as a priority. The following blocks have been completed since 2004 with the assistance of EECA subsidies: Geraldine - All Pleasant Point - All Temuka Harris Courts, King Street Pye Courts, Wilmshurst Street Tarrant Courts – Original insulation (20 – 30 years) Timaru 10A – C Princes Street Wilson Street Rhodes Street Hanan Place Keith / James Street Craigie Avenue Taylor Street. All new units built 2007/08 have insulation. Clyde Street and Jonas Street, Timaru, Tarrant Courts, Temuka and 74 King Street, Pareora were built over 20 years ago and have the original insulation material. As at February 2013, there are a total of 130 units where new insulation would be beneficial: Pareora 6 Temuka 31 (Cameron, Clarke, Tarrant and McMillan Courts) Timaru 93 (Woodlands Road, Harper and Princes Streets, Clyde Carr Crescent,

Clyde and Jonas Streets). Of these, the units at Pareora (6), Clyde Street (13), Jonas Street (12) and Tarrant Courts, Temuka (9) have existing insulation within ceiling spaces. These units (total of 40 units) are eligible for EECA funding (currently at 33%). This would leave 90 units to complete with new insulation. These units have skillion roofs, with monier tile cladding which can be a risk to reclad. Consultation with Building Unit staff suggests that renewing roof cladding with iron should be considered with the cost of insulation. Options The options are to undertake the upgrades on a timeframe that is most suitable to the Council yet remains affordable for the tenants. The preferred option for the bathrooms would be to undertake bathroom upgrades in the remaining 61 units over a period of 3 years. This would involve the installation of 34 walk-in showers and 27 shower boxes. The preferred option for the insulation upgrade would be to upgrade the 40 units that have ceiling spaces over the next 2 years. Further investigations would need to be undertaken in regard to the units with skillion roofs.


Identification of relevant legislation, Council policy and plans Local Government Act, Council’s Long Term Plan. Assessment of Significance The decision is not considered significant in terms of the Council’s Significance Policy. Consultation Consultation has previously been undertaken with tenants. Their views on levels of service and desired improvements are used as a basis of determining upgrades. Other Considerations Not Applicable. Funding Implications The total capital cost of the bathroom and insulation upgrades is forecast to be $527,000 of which $20,000 would be received from subsidies and the balance financed from an internal loan. Servicing costs for the loan could be financed within rent levels which include the rent increasing by an additional $5 per week for units that have both bathroom and insulation upgrades. This would be in addition to the rent increases already proposed. A budget showing the impact on the budget is attached in Appendix A. There continues to be no rate input into this activity. Conclusion It is desirable to undertake the bathroom and insulation upgrades of the social housing units to upgrade the level of service for the older units. This proposal will not fully complete all the insulation upgrades due to the roofing on some of the units which will need other options analysed and can be considered by the Council for the 2014/15 Annual Plan. Recommendations a) That the report be received and noted; and b) That the Council considers the addition of $527,000 over three years for

bathroom upgrades to 61 units and insulation upgrades to 40 units. This is to be financed via internal loans and subsidies.


Appendix A HOUSING CS2

AUTHORITY ACTUAL BUDGET PROJ ACTUAL BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

GL 2011/12 2012/13 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23Routine Expenditure $ $ $ $ $ $ $ $ $ $ $ $ $

Operating expenses 555,998 614,900 645,900 644,600 644,600 644,600 644,600 644,600 644,600 644,600 644,600 644,600 644,600Corporate Overhead 3850.980.980 91,400 94,600 94,600 97,400 96,200 95,800 93,900 93,600 93,300 92,800 92,300 92,300 92,000

Depreciation 3850.680.740 216,860 276,000 225,000 227,800 242,000 243,600 245,400 245,400 246,000 247,200 248,800 250,800 253,100Loan Expenses - Interest 3850.470.703 70,436 83,600 79,800 81,400 87,100 91,000 90,900 86,900 83,000 79,000 75,100 71,100 67,200

TOTAL OPERATING EXPENDITURE 934,694 1,069,100 1,045,300 1,051,200 1,069,900 1,075,000 1,074,800 1,070,500 1,066,900 1,063,600 1,060,800 1,058,800 1,056,900

Less Other IncomeRental Income 1850.110.138 886,176 948,400 950,000 1,021,000 1,069,400 1,130,400 1,132,400 1,132,400 1,132,400 1,132,400 1,132,400 1,132,400 1,132,400Subsidy re insulation 1850.115.172 0 0 0 20,000 0 0 0 0 0 0 0 0 0

NET COST OF SERVICES 48,518 120,700 95,300 10,200 500 -55,400 -57,600 -61,900 -65,500 -68,800 -71,600 -73,600 -75,500

Appropriations to Reserves Depreciation fund 5850.9600.9657 273,600 276,000 276,000 227,800 242,000 243,600 245,400 245,400 246,000 247,200 248,800 250,800 253,100Housing Fund 5850.9600.9620 0 0 0 0 -500 55,400 57,600 61,900 65,500 68,800 71,600 73,600 75,500

Less Reserve Funds AppliedDepreciation fund (re capex/loans rep) 5855.9601.9657 241,433 171,700 141,700 171,700 155,800 160,500 175,200 185,200 195,200 205,200 215,200 225,200 225,200Depreciation fund (re shortfall) 5855.9601.9657 0 120,700 146,300 30,200 0 0 0 0 0 0 0Housing Fund 5855.9601.9620 14,600 0 0 0 0 0 0 0 0 0 0 0 0

MOVEMENT IN RETAINED EARNINGS 66,085 104,300 83,300 36,100 86,200 83,100 70,200 60,200 50,800 42,000 33,600 25,600 27,900

Loan Repayments 9850.9402.9250 81,667 81,700 81,700 81,700 65,800 70,500 75,200 75,200 75,200 75,200 75,200 75,200 75,200

Capital ExpenditureShower upgrades 0 0 0 183,000 142,000 142,000 0 0 0 0 0 0 0Insulation 0 0 0 60,000 0 0 0 0 0 0 0 0 0Refurbishment 7850.730.401 69,108 90,000 60,000 90,000 90,000 90,000 100,000 110,000 120,000 130,000 140,000 150,000 150,000

216,860 276,000 225,000 450,800 384,000 385,600 245,400 245,400 246,000 247,200 248,800 250,800 253,100

Provision For Depreciation 7855.8401.8610 216,860 276,000 225,000 227,800 242,000 243,600 245,400 245,400 246,000 247,200 248,800 250,800 253,100

Loans RaisedInternal Loan 9850.9404.9250 0 0 0 223,000 142,000 142,000 0 0 0 0 0 0 0

GENERAL RATES 0 0 0 0 0 0 0 0 0 0 0 0 0

Closing Balance Housing Fund 2,013 357 376 -117 56,731 118,821 188,584 265,704 350,260 442,128 540,871 646,749Closing Balance Depreciation Fund (Housing) 95,121 199,219 241,557 346,792 454,493 554,995 650,774 742,198 829,652 913,340 993,473 1,080,175




Report for Agenda Item No 7 Prepared by Peter Nixon

Chief Executive Timaru District Holdings Limited Directorship

_______________________________ Purpose of Report The purpose of this report is to update the Council on the process for appointing an external director to Timaru District Holdings Limited (TDHL), establish a sub-committee to interview the shortlisted applicants to provide a recommendation for the Council to consider on 14 May 2013, and extend Craig O’Connor’s interim appointment until 15 May 2013. Background Director attributes for the external TDHL position were finalised at the 11 December 2012 Council meeting and the vacancy was advertised in January. The current casual vacancy held by Craig O’Connor terminated at the conclusion of the TDHL Annual General Meeting on 6 December 2012, but he was reappointed at the 11 December Council meeting for 4 months (ie to 11 April 2013). It is a busy period (with Easter in the middle) and there are a large number of applications referred to HR consultants to consider and shortlist. There is also a need to appoint a subcommittee to interview the shortlisted applicants and recommend an appointee to the Council. It is therefore unlikely that the appointment will be made by 11 April and it will be necessary to extend the interim appointment of Craig O’Connor for another month until the 14 May Council meeting. Mitchell Notley is considering the applications and will provide a shortlist for a Council sub-committee to interview. The sub-committee will then recommend one of the applicants to the Council for appointment. Options The decisions that are required are: 1. Re-appoint Craig O’Connor as the external TDHL director until the final

appointment is completed. 2. Appoint a subcommittee to interview the shortlisted applicants and present a

recommendation to the Council. This complies with the Council policy for appointments. However, the Council could decide to appoint another person as an interim director or alternatively speed the appointment process up and appoint a permanent director by 11 April.


Identification of Relevant Legislation, Council Policies and Plans Companies Act, Local Government Act, Director Appointment and Remuneration Policy and TDHL Constitution. Assessment of Significance This matter is not deemed significant under the Council’s Significance Policy. Consultation No consultation has been undertaken. Other Considerations None. Funding Implications There are no funding implications associated with this decision, although there are costs associated with the human resource consultant assessment process used to evaluate applicants for the director position. Conclusion A long term appointment to the position of external director for TDHL now needs to be completed. Many quality applications have been received and the Council needs to establish an interview subcommittee to interview the shortlisted applications and bring a recommendation to the Council. The casual vacancy will have completed his term by the time a new director is appointed so will need to be reappointed in the interim until the final appointment is completed. Recommendations 1 That Craig O’Connor be reappointed to the interim position of Director of

TDHL until 14 May2013.

2 That the applications received be considered and shortlisted by Mitchell Notley.

3 That an interview subcommittee be established with delegated authority to

interview the shortlisted applicants and recommend an appointment to the Council on 14 May 2013.

4 The interview subcommittee consist of the Chairman and Deputy Chairman

of TDHL, the Chairman of Policy and Development Committee and one other councillor (to be selected).




Added to agenda later Supplementary information for Agenda Item No 1

Prepared by Tina Rogers

Group Manager Corporate Services Aquatic Centre Rates (File R1/2)

_______________________________ Purpose of Report The purpose of this report is to provide information regarding the application of the Aquatic Centre rates based on the discussion at the Policy and Development Committee on 16 October 2012. Background The Committee considered the report that is attached. The resolution from that meeting was:

“That the report be received, the submitters be thanked for their submission, and taking on board the comments made in the submission and at this meeting, the Committee agrees to look at the issue prior to setting the district wide rates for the 2013/14 year and the matter be considered as part of the Annual Plan process.”

Options Both options that were included in the report are available. Amending the Rating Policy so that the rate applies per dwelling results in some farming units paying less and some paying more and an approach would need to be developed for the treatment of commercial properties and vacant residential sections. Adding a Remission Policy would be simpler in that the policy could be as specific as the Council wished. Ratepayers would need to apply for the remission and provide information regarding their circumstances. Firstly, the Council needs to decide if it wishes to amend the Rating Policy in respect of the Aquatic Centre rate. If it does the further decisions that are required include: 1. Is a change in rating policy or remission most appropriate? A change in rating

policy would be required if the rates were to be applied per dwelling in the rural sector. A remission could only be used to reduce rates that are applied under the policy.

2. What change is desired by the amendment? 3. Is the change to affect all sectors or only the farming sector? The other areas

that need to be considered are commercial properties that are not contiguous but are used for the same purpose and vacant commercial and residential sections.


4. Is the change only to apply to properties that are in the same legal ownership and used as one, or to apply to properties that are in different, but related, legal ownership that are used as one.

5. Would any change for farming properties be affected by the number of dwellings on the property? For example, would separate rural properties that have dwellings be able to be treated as a single unit for the provision of a remission of the Aquatic Centre rate.

6. Is the change in Aquatic Centre rate application to be expanded to other rate types such as the Uniform Annual General Charge?

7. How will the change be funded? (Refer to Financial Implications section of this report.)

Depending on the scope of the change, there would be differing consequences. The administration involved in amending the rating policy to be per dwelling would be significant as this information is currently not collected for rating purposes. A remission policy would be simpler to administer as ratepayers would make application. Any change in Remission Policy or Rates Policy would need to be consulted on via a Special Consultative Procedure. If significant changes were made to the Rating Policy, there could be a change in the Revenue and Financing Policy that would require an amendment to the Council’s Long Term Plan. Identification of Relevant Legislation, Council Policy and Plans Long Term Plan, Local Government Act 2002, and the Local Government (Rating) Act 2002. Assessment of Significance This matter is not deemed significant under the Council’s Significance Policy.

Consultation Consultation has previously been undertaken as part of the 2012-22 Long Term Plan. Other Considerations There are no other considerations relevant to this matter. Funding Implications Any change in the application of the aquatic centre rate would result in increased or decreased revenue to the Council. Due to the complexities of ownership, dwelling numbers and usage of properties, the number of properties that would be affected by each of the many options available is unknown. Currently there are 21,179 charges of the Aquatic Centre rate. Should there be a reduction in this number either through a change in Rating Policy or through a Remission Policy, a decision on this shortfall would be required. Either the Aquatic Centre rate for other ratepayers could be increased or there could be an increase in General Rates. If the shortfall was funded by an increase in the Aquatic Centre rate for the remaining ratepayers, the rate would increase by 50 cents for each 100 properties that no longer pay the rate either through a change in Rating Policy or Remission Policy. For example, if 1,000 ratepayers received a remission of their Aquatic Centre rate, other ratepayers would incur a $5 increase in the aquatic centre rate.


Given that the financial implications of a change in Rating Policy or the implementation of a Remission Policy are unknown, a provisional amount would need to be estimated and included in the budget. Any variance to this estimate would need to be adjusted for in the following year. Conclusion The application of the aquatic centre rate has been consistent over the last three years and is consistent with the application of the uniform annual general charge for rural and commercial properties. There is however some dissatisfaction from a small number of ratepayers. If any change is considered necessary, a new Remission Policy would be the simplest way to achieve a change. Recommendations a) That this report be received and noted. b) That the Council decides if any changes are warranted to the existing rates

policies at this time.


POLICY AND DEVELOPMENT COMMITTEE

FOR THE MEETING OF 16 OCTOBER 2012

Report for Agenda Item No 6 Prepared by Tina Rogers

Group Manager Corporate Services Aquatic Centre Rates (File R1/2)

_______________________________ Purpose of Report The purpose of the report is to provide background information on the aquatic centre targeted rate and circumstances where no aquatic centre rate can be charged. Mr and Mrs Robins have raised this issue and will be speaking to the Committee at 1.00pm. A copy of their letter is attached in Appendix A. Background The Long Term Plan (page 179) includes the following:

“The cost of the Caroline Bay Aquatic Centre is recovered from all ratepayers in the form of a uniform targeted aquatic centre rate assessed at the fixed amount per separately used or inhabited part of a residential rating unit, or per rating unit for other rating units (being the same amount per separately used or inhabited part of a residential rating unit).”

This is also reflected in the Rates Resolution made by the Council on 26 June 2012. The aquatic centre rate is now $102.00 and was previously $50.00 in 2011/12 and $26.00 in 2010/11 (all GST inclusive). A small amount of feedback has been received recently from ratepayers about the amount of this rate, particularly where a ratepayer is paying the rate on multiple properties. All rateable rating units receive the aquatic centre rate irrespective of value, size or improvements on the property and this application is unchanged over the last 3 years. The only exception to this is when rating units are in common ownership as per section 20 of the Local Government (Rating) Act (LGRA) which states:

“Two or more rating units must be treated as 1 unit for setting a rate if those units are-

(a) owned by the same person or persons; and (b) used jointly as a single unit; and (c) contiguous or separated only by a road, railway, drain, water rate,

river, or stream.” This section means that where a farm, business or residence is made up of multiple rating units (generally legal titles) that they are all in the same ownership and adjoining, they only incur one aquatic centre rate and one uniform annual general charge.


It is not uncommon for farming operations to be made up of multiple rating units due to multiple legal titles. Ratepayer queries generally result when the properties are not in the same legal ownership, such as part being owned by a partnership, part by a trust and part by a company, or where the properties are not adjoining. In the case of Mr and Mrs Robins, there are 3 farming blocks which are not adjacent to each other. In addition two properties are owned by a trust and one is owned as a partnership. The properties therefore do not qualify under section 20 of the LGRA to be treated as one property and only incur one aquatic centre charge and uniform annual general charge. Options The current method of applying the rate is consistent with the Uniform Annual General Charge (UAGC) with the exception that multiple residential units (such as blocks of flats) receive multiple aquatic centre charges for each unit but only one UAGC. Possible alternative options to consider which would assist Mr and Mrs Robins are: 1. To amend the rating policy so that the rate is applied per dwelling. 2. Add a rates remission policy for properties that are used together to reduce the

charge to one per operation. Both options would only be able to be applied from 1 July 2013 at the earliest. Under option 1 this would reduce the charges on some farming properties but would increase on other farming properties where there are multiple dwellings. The consequences on commercial properties would also need to be considered. Under option 2, this could incorporate the situation where properties are in different, but related, ownership structures although this does add additional complexity. Ratepayers would need to apply providing proof of the properties being used as a single unit. Both options would result in additional administration by council officers. Identification of Relevant Legislation, Council Policy and Plans Long Term Plan, Local Government Act 2002, and the Local Government (Rating) Act 2002. Assessment of Significance This matter is not deemed significant under the Council’s Significance Policy.

Consultation Consultation has previously been undertaken as part of the 2012-22 Long Term Plan earlier in 2012. Other Considerations There are no other considerations relevant to this matter.


Funding Implications Any change in the application of the aquatic centre rate would result in increased or decreased revenue to the Council. This would need to be addressed by changing the rate for other ratepayers to compensate. Conclusion The application of the aquatic centre rate has been consistent over the last three years and is consistent with the application of the uniform annual general charge for rural and commercial properties. There is however some dissatisfaction from a small number of ratepayers. It is not possible to make any changes for the current rating year and any change would need to be included in future Annual Plans and Long Term Plans. Recommendations a) That this report be received and noted. b) That the Committee decides if any changes are warranted to the existing

rates policies.


Appendix A

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Council M19 Marc

Meeting ch 2013

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Council Budget Annual Plan agenda 19 03 13 · 2014-07-02 · COUNCIL BUDGET / ANNUAL PLAN MEETING Commencing at 9.00am on Tuesday 19 March 2013 Council Chamber ... highlights the