PALMERSTON NORTH CITY COUNCIL
Committee of
Council MEETING
4 March 2020
Order of Business
NOTE: The
Committee of Council meeting coincides with the ordinary meeting of the Arts, Culture &
Heritage Committee meeting and the Infrastructure Committee meeting. The
Committees will conduct business in the following order:
- Committee of Council
- Arts, Culture & Heritage Committee
- Infrastructure Committee
1. Apologies
2. Notification
of Additional Items
Pursuant to Sections 46A(7) and
46A(7A) of the Local Government Official Information and Meetings Act 1987, to
receive the Chairperson’s explanation that specified item(s), which do
not appear on the Agenda of this meeting and/or the meeting to be held with the
public excluded, will be discussed.
Any additions in accordance with
Section 46A(7) must be approved by resolution with an explanation as to why
they cannot be delayed until a future meeting.
Any additions in accordance with
Section 46A(7A) may be received or referred to a subsequent meeting for further
discussion. No resolution, decision or recommendation can be made in
respect of a minor item.
3. Declarations
of Interest (if any)
Members are reminded of their duty
to give a general notice of any interest of items to be considered on this
agenda and the need to declare these interests.
4. Annual
Budget (Plan) 2020/21 - Adopting Supporting Information and the Consultation
Document Page 5
Memorandum, presented by Steve
Paterson, Strategy Manager - Finance.
5. Exclusion
of Public
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To be moved:
“That the
public be excluded from the following parts of the proceedings of this
meeting listed in the table below.
The general
subject of each matter to be considered while the public is excluded, the
reason for passing this resolution in relation to each matter, and the
specific grounds under Section 48(1) of the Local Government Official
Information and Meetings Act 1987 for the passing of this resolution are as
follows:
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General
subject of each matter to be considered
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Reason for
passing this resolution in relation to each matter
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Ground(s)
under Section 48(1) for passing this resolution
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This
resolution is made in reliance on Section 48(1)(a) of the Local Government
Official Information and Meetings Act 1987 and the particular interest or
interests protected by Section 6 or Section 7 of that Act which would be
prejudiced by the holding of the whole or the relevant part of the proceedings
of the meeting in public as stated in the above table.
Also that the
persons listed below be permitted to remain after the public has been
excluded for the reasons stated.
[Add Third
Parties], because of their knowledge and ability to assist the
meeting in speaking to their report/s [or other matters as specified] and
answering questions, noting that such person/s will be present at the meeting
only for the items that relate to their respective report/s [or matters as
specified].
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PALMERSTON NORTH CITY COUNCIL
Memorandum
TO: Committee
of Council
MEETING DATE: 4
March 2020
TITLE: Annual
Budget (Plan) 2020/21 - Adopting Supporting Information and the Consultation
Document
Presented By: Steve
Paterson, Strategy Manager - Finance
APPROVED BY: Stuart
McKinnon, Chief Financial Officer
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RECOMMENDATION(S)
TO Council
1. That the
Chief Executive incorporate the following amendments (if any) to the draft of
the supporting information and the Consultation Document for the 2020/21
Annual Budget.
2. That the following
(amended to incorporate amendments in recommendation 1) be adopted as
supporting information that has been relied upon to prepare the Consultation
Document for the 2020/21 Annual Budget (Plan):
· Financial
overview and forecast financial statements
· Annual
Budget (Plan) Disclosure Statement
· Groups
of Activities information, including financial forecasts and programme
schedules
· Significant
forecasting assumptions
· Descriptions
of the proposed rating system, rates and funding impact statements
· Descriptions
of proposed levels of service for Council activities and performance measures
3. That the
Consultation Document (amended to incorporate amendments in recommendation 1)
for the 2020/21 Annual Budget (Plan) be adopted.
4. That the
Mayor and Chief Executive be delegated authority to make minor amendments to
the Consultation Document.
5. That the
objectives of the rates remission policy be reviewed as part of the wider
review of financial policies during the preparation of the 10 Year Plan
2021-31.
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1. ISSUE
1.1 The
Council is required to adopt an Annual Budget[1]
for 2020/21. A draft of the budget has been prepared for consideration by the
Council. The Local Government Act 2002 (LGA) requires Councils to consult
with the public before adopting the Annual Budget. This requirement
does not apply if there are no material or significant differences between year
3 of the 2018-28 10 Year Plan and what is now proposed in the budget.
1.2 Whether
to formally consult or not is a decision for the Council to determine.
1.3 In
preparing this report it has been assumed the Council will wish to consult so a
draft of the supporting information and consultation document has been prepared
for Committee consideration.
1.4 The
Committee’s recommendations will be presented to a Council meeting on 18
March for adoption.
2. BACKGROUND
2.1 Under
Local Government legislation, the Council is not required to consult on an
Annual Budget unless there is significant change to levels or service, funding
issues, strategic assets by comparison with the particular year of the 10 Year
Plan. The Council must still adopt an annual plan prior to 30 June 2020.
2.2 There
are no significant changes to year 3 (2020/21) of the 10 Year Plan in terms of
the proposed outcomes and service deliverables. However, there are some
proposed changes to the timing of a number of programmes.
2.3 The
proposed Consultation Document (attached) highlights what changes there
are from year 3 of the 10 Year Plan, primarily due to changed circumstances and
updated timelines for some programmes.
2.4 The
legislative intent is that the Council no longer publishes a full draft of the
Annual Plan. However, much of the information that would have been in the
draft plan is still required to be adopted as supporting information and made
publicly available, particularly through Council’s website.
2.5 Preparation
of the material for consideration at this meeting has been assisted by
direction received from elected members at a workshop/briefing held in
February.
2.6 A
strategy for public engagement has been developed. This will include
provision of the final Consultation Document and Supporting Information on
Council’s website and at the Council office and City and branch
libraries, from 20 March.
2.7 Given
there is no material change to the direction it is proposed that there be an annual
budget component to the planned sector group meetings being arranged for the
development of the 2021-31 10 Year Plan.
2.8 It
is intended that the proposed rates for each property will be able to be viewed
on the Council’s website.
2.9 As
usual the public will have the option of making a submission and speaking to a
Council Hearings’ Committee.
2.10 Following
the consultation period and hearings, the Council will be required to adopt its
final Annual Budget (Plan) prior to 30 June 2020.
2.11 A
presentation, highlighting the key features of the proposed budget, will be
made at the meeting.
2.12 In
addition, attached as Appendix One, are a series of brief explanations
of some of the matters to be covered in the presentation and in particular:
Schedule A – Operating programmes –
variations between year 3 of the 10 Year Plan and the draft of the 2020/21
Annual Budget
Schedule B
– Capital renewal programmes – variations between year 3 of
the 10 Year Plan and the draft of the 2020/21 Annual Budget
Schedule C
– Capital new programmes – variations between year 3 of the
10 Year Plan and the draft of the 2020/21 Annual Budget
Schedule D –
Schedule of assumed carry forwards of incomplete 2019/20 programmes for
completion in 2020/21 – these assumptions will be reviewed again in May.
Schedule E
– Budgeted increase in operating expenses for 2020/21
compared with the 2019/20 annual budget (excluding interest and depreciation)
Schedule F
– Comparisons of rating incidence assuming varying
levels of UAGC – the draft supporting material includes an assumption the
UAGC will be $525.
2.13 In
the context of the legislation the following are being considered in the
supporting information to be adopted by the Council:
· Financial
overview and forecast financial statements
· Annual
Budget (Plan) Disclosure Statement
· Groups
of Activities information, including financial forecasts and programme
schedules
· Significant
forecasting assumptions
· Descriptions
of the proposed rating system, rates and funding impact statements
· Levels
of service and performance measures
These are
attached as Appendix Two.
2.14 In
August 2019 the Council resolved that the objective of the Rates Remission
Policy be reviewed during the 2020/21 annual plan process. It is recommended
that it would be more appropriate to do this as part of the overall review of
financial policies that is part of the preparation of the 2021-31 10 Year Plan.
3. NEXT
STEPS
3.1 Officers
will make any changes resulting from the Committee of Council’s decisions.
3.2 An
updated final Consultation Document will be presented to the Council for
adoption at its meeting on 18 March 2020.
4. Compliance
and administration
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Does the Committee have
delegated authority to decide?
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No
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Are the decisions significant?
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No
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If they are significant do they
affect land or a body of water?
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No
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Can this decision only be made
through a 10 Year Plan?
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No
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Does this decision require
consultation through the Special Consultative procedure?
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Yes
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Is there funding in the current
Annual Plan for these actions?
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Yes
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Are the recommendations
inconsistent with any of Council’s policies or plans?
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No
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The recommendations contribute
to Goal 5: A Driven and Enabling Council
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The recommendations contribute
to the outcomes of the Driven and Enabling Council Strategy
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The recommendations contribute
to the achievement of action/actions in a plan under the Driven and Enabling
Council Strategy
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Contribution to strategic direction
and to social, economic, environmental and cultural well-being
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Adopting an annual
budget/plan each year is a fundamental legislative requirement and without
this in place the Council will not be able to set rates for the year and
therefore fund any of its actions, plans or strategies.
Determining a draft of the
annual budget and the nature of public engagement is also a fundamental part
of the process.
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Attachments
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1.
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Appendix 1 Sch A - operating programmes - variations between
year 3 of 10YP and draft of 2020/21 AB ⇩ 
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2.
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Appendix 1 Sch B - capital renewal programmes - variations
between year 3 of 10YP and draft of 2020/21 AB ⇩ 
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3.
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Appendix 1 Sch C - capital new programmes - variations
between year 3 of 10YP and draft of 2020/21 ⇩
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4.
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Appendix 1 Sch D - schedule of assumed carry forward
programmes ⇩
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5.
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Appendix 1 Sch E - budgeted increase in operating expenses
compared with 2019/20 ⇩
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6.
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Appendix 1 Sch F - Examples of rates with varying levels of
UAGC ⇩
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7.
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Appendix 2 - Draft Consultation Document 2020/21 ⇩
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8.
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Appendix 2 - Draft supporting information for 2020/21 CD
(attached separately)
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