Agenda of Finance & Audit Committee - Wednesday, 27 April 2022

Palmerston North City Council

Minutes of the Finance & Audit Committee Meeting Part I Public, held as an Audio-Visual meeting on 23 March 2022, commencing at 9.01am

Members

Present:

Councillor Susan Baty (in the Chair), The Mayor (Grant Smith) and Councillors Vaughan Dennison, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Leonie Hapeta, Lorna Johnson, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Mr Stephen Armstrong.

Non Members:

Councillor Brent Barrett, Rachel Bowen, Zulfiqar Butt and Orphée Mickalad.

Apologies:

The Mayor (Grant Smith) (early departure on Council business) and Councillors Lew Findlay QSM (early departure) and Billy Meehan.

Councillor Vaughan Dennison left the meeting at 9.39am and entered the meeting again at 9.52am during consideration of clause 20. He was present for all clauses.

Councillor Orphée Mickalad was not present when the meeting resumed at 10.52am. He entered the meeting again at 10.56am during consideration of clause 22. He was present for all clauses.

Councillor Lorna Johnson was not present when the meeting resumed at 10.52am. She entered the meeting again at 10.59am during consideration of clause 22. She was present for all clauses.

Councillor Rachel Bowen left the meeting at 11.02am during consideration of clause 22. She was present when the meeting resumed at 1.56pm. She was not present for clauses 22 and 23.

The Mayor (Grant Smith) left the meeting at 11.40am at the conclusion of clause 22. He entered the meeting again at 2.20pm during consideration of clause 25. He was not present for clauses 23 and 24.

Councillor Leonie Hapeta was not present when the meeting resumed at 1.56pm. She was not present for clauses 24 to 27 inclusive.

17-22

Apologies

Moved Susan Baty, seconded Aleisha Rutherford.

The COMMITTEE RESOLVED

1. That the Committee receive the apologies.

Clause 17-22 above was carried.

	Declaration of Interest
	Councillor Vaughan Dennison declared a conflict of interest in item 13 (clause 26) and stated he would withdraw from the discussion.

18-22

Confirmation of Minutes

Moved Susan Baty, seconded Lorna Johnson.

The COMMITTEE RESOLVED

1. That the minutes of the Finance & Audit Committee meeting of 23 February 2022 Part I Public and Part II Confidential be confirmed as true and correct records.

Clause 18-22 above was carried.

19-22

Palmerston North Airport Ltd - Interim Report for 6 months to 31 December 2021

Memorandum, presented by Steve Paterson, Strategy Manager Finance, Murray Georgel (Palmerston North Airport Ltd (PNAL) Chair) and David Lanham (PNAL Chief Executive).

Moved Susan Baty, seconded Zulfiqar Butt.

The COMMITTEE RECOMMENDS

1. That Council receive the Interim Report and Financial Statements of Palmerston North Airport Ltd for the period ended 31 December 2021, presented to the Finance & Audit Committee on 23 March 2022.

Clause 19-22 above was carried.

20-22

Palmerston North Airport Ltd - Draft Statement of Intent for 2022/23

Memorandum, presented by Steve Paterson, Strategy Manager Finance, Murray Georgel (PNAL Chair) and David Lanham (PNAL Chief Executive).

Councillor Vaughan Dennison left the meeting at 9.39am and entered the meeting again at 9.52am.

Moved Susan Baty, seconded Karen Naylor.

The COMMITTEE RECOMMENDS

1. That Council receive the Palmerston North Airport Ltd (PNAL) draft Statement of Intent for 2022/23, presented to the Finance & Audit Committee on 23 March 2022, and PNAL be advised that Council supports the proposed direction and implementation strategy.

Clause 20-22 above was carried.

21-22

Debt funding arrangements for Palmerston North Airport Ltd - Loan Facility Agreement

Memorandum, presented by Steve Paterson, Strategy Manager Finance.

Moved Susan Baty, seconded Karen Naylor.

The COMMITTEE RECOMMENDS

1. That the loan facility agreement (attached) that would enable the Council to borrow sums from the Local Government Funding Agency and on-lend to Palmerston North Airport Limited in the form of fixed rate unsecured debt be approved.

2. That the Chief Executive be authorised to approve amendments to the agreement (if required) to address the way in which Local Government Funding Agency Borrower Notes are treated between the parties, or as a consequence of annual reviews.

3. That the Chief Executive be authorised to enter transactions contemplated by the loan agreement of amounts not exceeding $10 million in advance of the approval of the final Statement of Intent each year, and subsequently transactions not exceeding the maximum term debt for each year as outlined in the adopted Statement of Intent.

Clause 21-22 above was carried.

Note:

Councillor Orphée Mickalad did not participate in the vote.

The meeting adjourned at 10.33am.
The meeting resumed at 10.52am.

When the meeting resumed Councillors Lorna Johnson and Orphée Mickalad were not present.

22-22	Fees and Charges Review Report, presented by Steve Paterson, Strategy Manager Finance. Councillor Orphée Mickalad entered the meeting at 10.56am. Councillor Lorna Johnson entered the meeting at 10.59am. Councillor Rachel Bowen left the meeting at 11.02am.
	Moved Susan Baty, seconded Lorna Johnson. The COMMITTEE RECOMMENDS Planning & Miscellaneous 1. That the Statement of Proposal (and the associated summary) to adopt updated fees and charges for Planning Services and Miscellaneous Services effective from 1 July 2022 as attached in Appendix 3, be approved for public consultation and the Chief Executive be authorised to undertake the necessary consultative process under sections 83 and 150 of the Local Government Act 2002. Building 2. That the fees and charges for Building Services, as proposed in Appendix 4 be adopted and following public notification take effect from 1 July 2022.
	Clauses 22.1-22 and 22.2-22 above were carried.
	Moved Susan Baty, seconded Lorna Johnson. 3. That Council receive the report titled ‘Fees and Charges Review’, presented to the Finance & Audit Committee on 23 March 2022, and that the current status of fees and charges be noted. Trade Waste 4. That the proposal to adopt updated fees and charges for Trade Waste services effective from 1 July 2022 as attached in Appendix 2, be approved for public consultation and the Chief Executive be authorised to undertake the necessary consultative process under sections 82 and 150 of the Local Government Act 2002. Environmental Health 5. That the fees and charges for Environmental Health Services (in terms of regulation 7 of the Health (Registration of Premises) Regulations 1966) as proposed in Appendix 5, be adopted and following public notification, take effect from 1 July 2022. Animal Control 6. That the fees and charges for the Impounding of Animals (in terms of section 14 of the Impounding Act 1955) and for Dog Registration and Dog Impounding (in terms of sections 37 and 68 of the Dog Control Act 1996) as proposed in Appendix 6 be adopted, and following public notification, take effect from 1 July 2022. Burial & Cremation 7. That the fees and charges for Burial and Cremation, as proposed in Appendix 7 be adopted and following public notification, take effect from 1 July 2022. Service Connections 8. That the fees and charges for Service Connections, as proposed in Appendix 8 be adopted and take effect from 1 July 2022. Resource Recovery/Waste Management 9. That the changes to fees and charges for Resource Recovery/Waste Management relating to the recycling of tyres as proposed in Appendix 9 be adopted and take effect from 1 July 2022. Sportsfields 10. That the fees and charges for Sportsfields as proposed in Appendix 10 be adopted and take effect from 1 July 2022. Backflow Prevention 11. That the fees and charges for Backflow Prevention testing and maintenance as proposed in Appendix 11 be adopted and take effect from 1 July 2022. Corridor Access Request 12. That the fees and charges for Corridor Access Requests as proposed in Appendix 12 be adopted and take effect from 1 July 2022.
	Clauses 22.3-22 to 22.12-22 above were carried.

The Mayor (Grant Smith) left the meeting at 11.40am.

23-22

Variations to Operating Budget

Memorandum, presented by Cameron McKay, Acting Chief Financial Officer.

Moved Susan Baty, seconded Karen Naylor.

The COMMITTEE RECOMMENDS

1. That Council receive the memorandum titled ‘Variations to Operating Budget’ presented to the Finance & Audit Committee on 23 March 2022.

2. That Council note and approve bringing forward capital expenditure of $1m from 2022/23 into 2021/22 for Programme 1879 - Council's Plant and Vehicle Replacements.

Clause 23-22 above was carried.

The meeting adjourned at 12.02pm.
The meeting resumed at 1.56pm.

The Mayor (Grant Smith) and Councillor Leonie Hapeta were not present when the meeting resumed.

24-22

Allocation of funding from the Low Carbon Fund to Capital Renewal Programmes

Memorandum, presented by Adam Jarvis, Senior Climate Change Advisor.

Moved Susan Baty, seconded Lorna Johnson.

The COMMITTEE RECOMMENDS

1. That ‘Programme 1791 – Parks Depot – Building Reserves’ be increased by $90,000 in the 2021/2022 Financial Year for the upgrade of the Ferguson Street Depot boiler to modern energy efficiency standards.

2. That ‘Programme 1837 - Swimming Pools – Pool Renewals’ be increased by $39,558 in the 2021/2022 Financial Year for the upgrade of the modern energy efficient variable speed drives at the Lido Aquatic Centre.

3. That ‘Programme 1888 – Low Carbon Fund’ be reduced by $129,558 in the 2021/2022 Financial year.

Clause 24-22 above was carried.

25-22

Ashhurst Domain - Vacant Ex-Cafe Building Options

Report, presented by Bryce Hosking, Group Manager - Property, and Kathy Dever-Tod, Group Manager - Parks and Logistics.

After discussion Elected Members were of the opinion that Council should retain the ex-café building within Ashhurst Domain. Waiting until the review of Ashhurst Domain Reserve Management Plan was completed would provide a complete picture, including the historical and heritage value of both the land and building.

The Mayor (Grant Smith) entered the meeting at 2.20pm.

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RECOMMENDS

1. That Council retain the ex-café building within Ashhurst Domain and seek to lease the building once the review of Ashhurst Domain Reserve Management Plan is completed.

Clause 25-22 above was carried.

26-22

Colquhoun Park - Proposal to grant a lease on reserve land to Manawatu Softball Association Incorporated and Freyberg Old Boys' Rugby Football Club Incorporated

Memorandum, presented by Bryce Hosking, Group Manager - Property and Kathy Dever-Tod, Group Manager - Parks and Reserves.

Moved Grant Smith, seconded Patrick Handcock ONZM.

The COMMITTEE RECOMMENDS

1. That Council approve entering a new lease with Manawatu Softball Association and Freyberg Old Boys’ Rugby Club Incorporated for part of the Colquhoun Park Pavilion, 134-136 Fairs Road, Palmerston North, in accordance with Section 54 of the Reserves Act 1977.

Clause 26-22 above was carried.

Note:

Councillor Vaughan Dennison declared a conflict of interest and withdrew from the discussion.

27-22

Committee Work Schedule

Moved Susan Baty, seconded Patrick Handcock ONZM.

The COMMITTEE RESOLVED

1. That the Finance & Audit Committee receive its Work Schedule dated March 2022.

Clause 27-22 above was carried.

The meeting finished at 2.35pm.

Confirmed 27 April 2022

Chairperson

Report

TO: Finance & Audit Committee

MEETING DATE: 27 April 2022

TITLE: Waka Kotahi Recreation Pathways Fund Associated with Te Ahu a Turanga Highway

PRESENTED BY: Kathy Dever-Tod, Group Manager - Parks and Logistics

APPROVED BY: Sarah Sinclair, Chief Infrastructure Officer

RECOMMENDATION(S) TO Council

1. That the Chief Executive is authorised to prepare a bid to the Waka Kotahi Te Ahu a Turanga Recreational Paths Fund on behalf of the Council.

2. That the amount of the Council bid to the Waka Kotahi Te Ahu a Turanga Recreational Paths Fund is $516,000, as described in Option 2 of this report and comprised of:

· $456,000 to enhance the existing pathways on the Ashhurst side of the river; and

· $60,000 to investigate the options and costs of addressing pedestrian, cycling and equestrian safety on the Saddle Road Bridge and equestrian facilities on the Pembroke Street rail overbridge.

3. That the Council note the funding application reflects the initial estimate of the cost to construct the chosen option, and further investigation is required before an engineer’s estimate can be prepared.

4. That the Chief Executive report back to the Finance & Audit Committee on the outcome of the funding application, including any financial implications for consideration as part of the draft 2023/24 Annual Budget process.

Summary of options analysis for

Problem or Opportunity	Waka Kotahi have established a $1 million Recreational Paths Fund (the fund) associated with the construction of the new Te Ahu a Turanga highway. The fund priorities are for improvements associated with the communities affected by the Te Ahu a Turanga highway construction. Council is eligible to apply to the fund. A decision is required as to whether Council wishes to apply to the fund and accept the long-term maintenance and renewal costs associated with developments undertaken from the fund, as well as the community benefits.
OPTION 1:	Development of a full 3 Bridges Loop, 10 km off road recreation circuit.
Community Views	Proposal supported by Society for the Resilience and Engagement of the Community of Ashhurst & Pohangina Incorporated (RECAP). Proposal supported by Ashhurst equestrian community representatives if improved access for horses around the village is provided.
Benefits	· Provide a 10 km recreational loop path connected to, and utilising portions of, the Te Ahu a Turanga shared path and repurposed construction road. · Improves the level of service on the existing Ashhurst pathway network providing safer, more accessible shared pathways in Ashhurst. · Improves access for horse riders. · Integrates with Roading Programme 2057, which includes a connection from the Village to the Ashhurst Domain via a pedestrian/cycle bridge across the railway line at Pembroke Street. · Option is scalable to the amount of funding received, if any.
Risks	· Encouraging additional pedestrian, cyclist and equestrian use of the Saddle Road Bridge raises a significant safety risk. There are no separated facilities on the bridge. · Does not provide a full loop for horses because the Te Ahu a Turanga shared path is not approved for horses and there are no facilities on the Saddle Road Bridge. · Limited investigations into the design and costs on several elements of the proposal have been undertaken. There is a risk cost may come in higher than estimated. A preliminary engineering assessment of the Terrace ramp has been commissioned at the time of writing to reduce this risk. · There will be demand for further increased levels of service such as carparking, pest control and planting on the true left bank of the Pohangina River. · Does not address uncertainty regarding additional costs for achieving an equestrian level of service on the Pembroke Street rail overbridge.
Financial	$573,000 externally funded from Recreational Pathways Fund. Additional $42,000 operational funding per annum for walkways maintenance. Increased renewals costs.
OPTION 2:	Enhance walkways on the Ashhurst Village side only and investigate loop feasibility – Preferred Option
Community Views	Proposal supported by RECAP. Proposal supported by Ashhurst equestrian community representatives if improved access for horses around the village is provided.
Benefits	· Improves level of service on existing Ashhurst pathway network providing safer, more accessible shared pathways in Ashhurst. · Improves access for horse riders. · Integrates with Roading Programme 2057, which includes a connection from the Village to the Ashhurst Domain via a pedestrian/cycle bridge across the railway line at Pembroke Street. · Investigates options and costs for safety improvements to the Saddle Road Bridge and assesses the marginal cost of equestrian access being included into the rail overbridge design so the feasibility of the long-term vision is better understood. · Option is scalable to the amount of funding received, if any.
Risks	· Does not provide access to the repurposed construction road. · Limited investigations into the design and costs on several elements of the proposal have been undertaken. There is a risk costs may come in higher than estimated. A preliminary engineering assessment of the Terrace ramp has been commissioned at the time of writing to reduce this risk.
Financial	$516,000 external funding from Recreational Pathways Fund. Additional $15,000 operational funding per year for walkways maintenance.
OPTION 3:	Do not bid to the Te Ahu a Turanga Recreational Paths Fund to establish the Ashhurst Three Bridges Loop path.
Community Views	RECAP and equestrian representatives have supported making improvements to Ashhurst recreation facilities. This option does not deliver those improvements.
Benefits	· No additional maintenance and renewal costs. · No risk of demand for increased levels of service.
Risks	· Disappointment in the Ashhurst community that the funding opportunity was not taken.
Financial	There are new additional financial implications arising from this option.

Rationale for the recommendations

1. Overview of the problem or opportunity

1.1 Waka Kotahi have established a $1 million Recreational Paths Fund (the fund) associated with the construction of the new Te Ahu a Turanga highway.

1.2 The fund is expected to open for applications in late April/early May and will remain open until it is either all allocated/spent, or the highway project is complete.

1.3 Waka Kotahi are expected to prioritise the fund to the communities close to the highway but have not limited bids to that criteria.

1.4 The fund purpose includes a preference for pathways that connect to the highway shared path, but again this is not a limiting criterion.

1.5 Council Officers have scoped a potential project, labelled the ‘Three Bridges Loop’, as shown in Attachment 1, consistent with the vision presented in the Te Apiti Masterplan.

1.6 The Three Bridges Loop would complete a 10 km path that makes use of new and repurposed assets delivered by the highway project and enhances existing pathways in Ashhurst. It incorporates an existing Council active transport project, within Programme 2057 of the 2021-31 Ten Year Plan, to provide a railway overbridge, as a link in the loop.

1.7 The component projects that make up the Three Bridges Loop proposal are not currently included in the Parks Asset Management Plan or Council’s 2021-32 Ten Year Plan.

1.8 If the Council funding bid is successful, Council would need to make a new funding provision for the ongoing costs maintenance and renewal costs associated with the new assets.

1.9 Council needs to decide whether it wishes to pursue this funding opportunity and if so, the extent of the projects it wishes to pursue given the risks and uncertainty around the Saddle Road Bridge of a full loop.

2. Background and previous council decisions

2.1 Waka Kotahi is building Te Ahu a Turanga to replace the existing section of highway which incorporates the Manawatu Gorge. The new highway will have a sealed shared path alongside it from Ashhurst Domain to the roundabout at the Woodville end of the highway.

2.2 Waka Kotahi have established a contestable $1 million ‘Recreational Paths Fund’ to be spent or fully committed to projects by the time the highway opens in late 2024.

Wider environment

2.3 Te Apiti Masterplan: The Te Apiti/Manawatu Gorge Masterplan proposes 11 projects to enhance the recreation and biodiversity aspects of the scenic reserve. One of the projects listed in the Masterplan is length of pathway connecting the wetland walkways under the eco viaduct back to the Saddle Road Bridge.

2.4 Council contributes $44,000 per annum through Long Term Plan Programme 835 – Ashhurst Domain – Biodiversity Improvements as Part of Manawatū Gorge Project. Through the Ten Year Plan Programme 1486, $156,000 of operational funding has been budgeted towards implementation of the Te Apiti Masterplan.

2.4.1 Waka Kotahi has a separate workstream underway looking at the future of the old Gorge Road. Responsibility for maintenance of any future walk/cycle/equestrian pathway along the old road is yet to be confirmed.

2.5 Lindauer Trail, Tararua: Tararua District Council will be bidding for a portion of the Recreational Paths Fund to progress a long-envisaged ‘Lindauer Trail’ connecting Woodville to Ferry Reserve. Like the proposed pathway at the Ashhurst end, the Lindauer Trail will connect to the Te Ahu a Turanga shared path and the Manawatu Gorge walkways.

2.6 Gateway Park: Waka Kotahi will be delivering an enhanced carpark area at the Ashhurst end/start point of the Manawatu Gorge walks. The Te Ahu a Turanga shared path will pass through the carpark. Future responsibility and funding for the maintenance of this carpark in the Waka Kotahi construction corridor land is yet to be confirmed.

2.7 Ashhurst Domain Reserve Development and Management Plan: Work was initiated on review of the Ashhurst Domain Development and Management under Programme 1073, which allows $60,000 per year for Reserve Management Planning. The background research was completed in 2021. This work has been delayed by staff resource prioritisation to urban growth planning and delivery of current programmes. The Ashhurst Domain work is planned for completion in 2022/23.

2.8 Manawatu River Park: The Manawatu River Framework plans for a continuous pathway between Palmerston North and Ashhurst. The 3 Bridges Loop has the potential to add value to that vision with a loop on the end that would mean a 40 to 50 km off-road route would be established.

Land Ownership

2.9 All the land contained within the 3 Bridges Loop proposal is in public ownership.

2.10 The portion of the path east of the Pohangina River – between the new Manawatu River (Parahaki) Bridge and the Saddle Road Bridge, is the current highway construction road which passes over land owned by Waka Kotahi. Waka Kotahi have signalled that they intend to maintain ownership of this land.

2.11 The section of path described in 2.10 is within the city boundary, it is within the Manawatu District Council (MDC) rohe.

Urban Growth in Ashhurst

2.12 Preliminary investigations have been completed for the proposed Ashhurst Urban Growth plan change. The Mulgrave Street area within the plan change is on the Terrace and related to the proposed loop development.

2.13 If the plan change proceeds as currently proposed it will add a 550m off-road path along the Terrace as shown in Figure 1.

Map

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Figure 1: Mulgrave Street Urban proposed Urban Growth Area

Parks Asset Management Plan

2.14 The current level of service for walkways, as described in the Parks Asset Management Plan, is:

· Walkway surfaces are maintained to a standard appropriate to the type and level of usage, and the surrounding environment

· Council is progressively replacing walkways on key active transport routes with shared pathways

2.15 The level of service along The Terrace path is variable. Some sections have a gravel or limestone hard surface and other section are grass.

2.16 There has been demand from the equestrian community in Ashhurst for access along the Terrace walkway. A deputation to Council in December 2018 requested the removal of barriers, opening up of pathways and a potential overbridge across a railway track.

2.17 In April 2019 Council resolved:

1. That Council notes the actions undertaken to improve access for horse riders in Ashhurst.

2. That Council incorporates the needs of horse riders into a wider planning process to identify active transport routes from the realignment of State Highway 3, through the Ashhurst village and towards the Saddle Road.

2.18 There are currently no projects in the AMP or Long-Term Plan of Council which facilitate a change to the level of service for existing paths in Ashhurst.

2.19 The provision of a consistent hard surface path would provide a more accessible path, including for wheeled uses and those with mobility issues, and more robust surface for regular equestrian use.

Timing and investigations

2.20 There is some flexibility around timing of implementation with Waka Kotahi indicating funded projects must be completed or committed by 2024, when the highway is due for completion.

2.21 Council can submit a proposal based on the rough order estimates developed to date, noting that scope of the series of projects within the programme would be reviewed following the completion of investigations and design in 2022/23.

2.22 Implementation could then follow in 2023/24.

3. Description of options

3.1 Option 1: Development of a full 3-Bridges Loop, 10 km off road recreation circuit

3.1.1 The pathway will utilise:

· a portion of the Ashhurst to Woodville highway shared path (3.2 km);

· the repurposed construction road from Saddle Road Bridge to the Parahaki Bridge (2.9 km), connecting the wetland walkways under the eco viaduct back to the Saddle Road. This would require an access and maintenance agreement with Waka Kotahi;

· the Saddle Road Bridge, which has no cycling/walking/equestrian facilities;

· portions of new pathway construction (2.2 km); and

· upgrades to existing paths (1.1 km) and a railway overbridge at Pembroke Street, Ashhurst.

3.1.2 The Pembroke Street railway overbridge is included in the 2021-2031 Ten Year Plan under Active Transport Programme 2057. Implementation is provisionally indicated for 2024/25^{^[1]}. This programme is Waka Kotahi funded and it is not known at this time whether an equestrian level facility would be eligible for funding or whether the additional costs would need to be met by Council.

3.1.3 Option 1 is estimated to cost $531,000 to construct and $40,000 a year to maintain.

3.2 Option 2: Enhance walkways on the Ashhurst Village side only and investigate loop feasibility

3.2.1 Limit the work to Council land on the Ashhurst side only – from McCraes Bush along the Terrace to Ashhurst Domain, as shown within the dotted white lines in Attachment 1.

3.2.2 This option excludes repurposing and connecting to the construction road on true left bank of the Pohangina River, within the Manawatu District, and constructing a path on the road shoulder from the Saddle Road Bridge to McCraes Bush.

3.2.3 The Pembroke Street railway overbridge would be completed under Programme 2057.

3.2.4 This Option would include an application for investigations funding to:

1. Ascertain options and their costs for pedestrian/cyclist/equestrian improvements to the Saddle Road Bridge.

2. Seek advice on the design and cost requirements for the Pembroke Street rail overbridge to ascertain the difference between pedestrian/cycle facilities with and without additional capacity for equestrian.

3.2.5 Option 2 is estimated to cost $516,000 to construct and $15,000 per year to maintain.

3.3 Option 3: Status quo – Do not apply to the fund

3.3.1 Council could determine that the ongoing maintenance and renewal costs do not justly the benefits of the capital funding available and decide not to apply to the fund.

4. Analysis of options

4.1 Option 1: Development of a full 3-Bridges Loop, 10 km off road recreation circuit

4.1.1 Option 1 provides for a 10 km walking and riding loop.

4.1.2 The repurposed construction road would provide another walking environment connected to the Gateway Park/Te Apiti.

4.1.3 The full loop will be attractive to residents of Ashhurst, has potential for events (with appropriate traffic management on the Saddle Road Bridge) and would provide an extension to the recreation opportunity from Palmerston North in conjunction with the Manawatu River Path, when the connection to Ashhurst is completed.

4.1.4 The level of service for the existing walkway along the top of the Terrace would be increased to a hard surface, making it accessible to more people.

4.1.5 Connectivity to the Ashhurst Domain would add loop walking opportunities and improve access, including from the Mulgrave portion of the Ashhurst Urban Growth area, if that proceeds.

4.1.6 The redevelopment of the equestrian access ramp up and down the Terrace to McCraes Bush, along the Terrace and to the Domain via an overbridge were also presented to Waka Kotahi by RECAP at a community meeting on proposals.

4.1.7 This option could be considered a long-term objective if other options are preferable at this stage.

4.1.8 The risks associated with Option 1 are:

· Limited time to prepare designs and costs estimates means this option has the greatest financial risk. A preliminary engineering assessment of the Terrace ramp has been commissioned at the time of writing to reduce this risk.

· The Saddle Road Bridge has no separate walking/cycling or equestrian facilities. The shoulder is narrow and cannot accommodate those transport modes without being very close to or in the live traffic lane as shown in Figure 2. Encouraging the loop use will present significant safety risks on this bridge.

Figure 2: Saddle Road Bridge

· Securing a public access agreement and maintenance agreement with Waka Kotahi for the land parcel on which the construction road sits, to repurpose and maintain the road as a shared path.

· Demand for new levels of service as a result of project implementation such as pedestrian/safety improvements to the Saddle Road Bridge, carparking, pest control and planting on the true left bank of the Pohangina River.

· The rail overbridge at Pembroke Street has not been designed. The marginal cost of achieving equestrian access is not understood or budgeted for. Waka Kotahi may not fund the equestrian level of service.

4.1.9 Costs are estimated at $578,000 from the fund, as outlined in Attachment 2. The cost estimate excludes elements funded in existing programmes.

4.2 Individual projects within the overall programme could be prioritised to match the level of funding received from Waka Kotahi should funding awarded be less than the amount applied for.

4.2.1 Maintenance costs are estimated at $42,000 per year including an allowance for the risk of illegal dumping at the service gates to the repurposed construction road.

4.3 Option 2: Enhance walkways on the Ashhurst Village side only and investigate loop feasibility

4.3.1 This is the preferred option due to the following benefits:

4.3.2 There would be no requirement to negotiate an agreement with Waka Kotahi for the parcel with the construction road on it, and there is no risk of increased level of service requests for the repurposed construction road.

4.3.3 Investigating the options and their costs for addressing the safety of encouraging walking, cycling and equestrian use of the Saddle Road Bridge ensures that options to mitigate the risk are understood before committing to the aspiration of the full loop.

4.3.4 Investigating the marginal cost of equestrian level specification for the Pembroke rail overbridge improves planning and cost understanding in a timely manner allowing an informed decision for future Assert Management Plan and 10 Year Plan processes.

4.3.5 The costs are $516,000. The cost estimate excludes elements funded in existing programmes.

4.3.6 The maintenance costs are estimated as $15,000 per annum.

4.3.7 Option 2 does not have the loop benefits of Option 1.

4.3.8 Option 2 has a lower risk profile than Option 1.

· The study of options to improve safety and/or provide facilities on the Saddle Road Bridge and the approaches to it from either direction will be undertaken, which reduces uncertainty with respect to practicable options and cost.

· Option 2 reduces the immediate risks of pressure to increase the level of service such as further carparking, increased planting and pest control on the proposed repurposed construction haul road until the safety concerns of the Saddle Road Bridge and approaches are considered in more detail.

4.3.9 Limited time to prepare designs and costs estimates means high financial risk; in particular design and reliable costing for the Terrace to McCraes Bush ramp are still present in this option.

4.4 Option 3: Status quo - Do not apply to the fund

4.4.1 Option 3 maintains the existing levels of service with no increased provision.

4.4.2 The benefits of Option 3 are:

· no increased renewal and maintenance costs; and

· no risk of increased demand for further facility provision in the future such as further carparking increased planting and pest control.

4.4.3 The risks are that Option 3 does not:

· deliver on demand for increased accessibility and equestrian access;

· investigate options for overcoming the barriers to delivering on the full loop proposed by the Te Apiti Masterplan;

· take advantage of the funding opportunity. The funding is a limited opportunity associated with the highway development. Other opportunities of this size may not arise again in this location.

5. Flexibility of component deliVery

5.1 There is uncertainty about the level of funding that may be secured. In the event that Waka Kotahi fund less than the applied for amount Council can prioritise projects within the overall proposal to fit the funding available.

5.2 If the fund were unsubscribed Council could consider other level of service improvements if requested to consider further applications.

6. Conclusion

6.1 The Waka Kotahi Recreational Paths Fund is available for community-initiated pathway projects, ideally connected to the Te Ahu a Turanga shared path.

6.2 The fund is a timely opportunity to progress delivery of improved levels of service for the Ashhurst community and visitors from Palmerston North and further afield.

6.3 Option 2, developing the paths within the village and scoping the implications of the key barriers to implementing a full loop, will be a significant step towards the Te Apiti Masterplan vision.

6.4 Option 2 ensures adequate research is completed on the feasibility and costs of addressing the key barriers of:

· the Saddle Road Bridge;

· the approaches to the Saddle Road Bridge; and

· the requirements for equestrian level of service on the planned Pembroke Street overbridge

to inform future decisions and significantly reduce risk.

6.5 Option 2 is the recommended option. If Waka Kotahi funding does not provide funding at the level applied for, the component projects within the Option 2 proposal can be prioritised to stay within budget.

6.6 The longer-term vision proposed for the 10 km Three Bridges Loop Path in the Te Apiti Masterplan would add to the exceptional recreational opportunities available and be accessible from the village of Ashhurst. Once the shared path from Palmerston North to Ashhurst is completed this loop would add value to the Manawatu River Park.

6.7 The design of the Pembroke Street Rail overbridge has not started. As such, there is not yet an understanding of the marginal costs of delivering improved equestrian access through to the Domain and River environments from the Village, over and above that for just cyclists and pedestrians.

7. Next actions

7.1 Prepare funding proposal for submission to Waka Kotahi.

8. Outline of community engagement process

8.1 Waka Kotahi has operated a series of stakeholder and community engagement hui throughout the planning and construction process for Te Ahu a Turanga.

8.2 There was a strong community call for the inclusion of a shared path alongside the new road all the way from Ashhurst to Woodville. Adding a community benefit component is a common feature of projects of this size.

8.3 Council, Waka Kotahi, Horizons Regional Council and Department of Conservation have worked together to develop plans for the future ‘Gateway Park’ as the start point for walks in the Manawatu Gorge.

8.4 Waka Kotahi has been holding Community Liaison Group meetings to keep the community informed of progress on the new highway and receive feedback from the community along the way.

8.5 To date Waka Kotahi has held two public meetings specifically to discuss the process and to hear ideas relating to the Recreational Paths Fund. The most recent of these was in February 2022.

8.5.1 Other ideas and proposals raised at the February 2022 Recreational Paths Fund community meeting included:

· A pathway up to Wharite Peak.

· Completing the Lindauer Trail on the Woodville side – Woodville to Ferry Reserve.

· Enhanced equestrian access across the local farms.

· Progressing a mountain bike trail through the Gorge following the southern boundary of the scenic reserve.

· Improving the Naenae Road link path into the Tararua Range. Connecting the Tararua District to Palmerston North District via Council maintained trails in Tararua Forest Park and Hardings Park and on to Sledge Path.

· Opening the old Manawatu Gorge Road to the public. Note this is being considered under a separate Waka Kotahi work-stream.

Compliance and administration

Does the Committee have delegated authority to decide?		No
Are the decisions significant?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		No
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to Goal 2: A Creative and Exciting City
The recommendations contribute to the achievement of action/actions in Active Communities The actions are: · Improve walkways and shared paths to support the City’s most popular activity · Promote opportunities to be active · Work with other sport and recreation providers and adjoining Councils · Develop and improve walking opportunities through the promotion of new trails, designating links on private land to achieve network continuity · Extend the walkway/ shared path network and develop new parks in residential growth areas
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The recommendations will add shared path experiences in Ashhurst improving the social well-being of residents of both Ashhurst and Palmerston North. In combination with the Te Ahu a Turanga shared path and gateway development, and in accordance with the Te Apiti Masterplan, the proposed walkway adds to the visitor experience and the associated economic benefits for the community.

Attachments

1.	Proposed Three Bridges Loop path map ⇩
2.	Preliminary Cost Estimates - Options 1 and 2 ⇩

Memorandum

TO: Finance & Audit Committee

MEETING DATE: 27 April 2022

TITLE: Treasury Report - 9 Months Ending 31 March 2022

Presented By: Steve Paterson, Strategy Manager - Finance

APPROVED BY: Cameron McKay, Acting Chief Financial Officer

RECOMMENDATION(S) TO Finance & Audit Committee

1. That the Committee note the performance of Council’s treasury activity for the 9 months ending 31 March 2022.

1. ISSUE

To provide an update on the Council’s treasury activity for the 9 months ending 31 March 2022.

2. BACKGROUND

The Council’s 10 Year Plan 2021-31 forecast additional debt requirements for 2021/22 of $49.5m would need to be raised during the year to fund the $67.5m of new capital expenditure programmes (including assumed carry forwards from 2020/21). In July 2021 the Council resolved to specifically authorise the raising of up to $50m of additional debt. In September 2021 the Council approved increasing the new capital expenditure programme for the year by a further $4.2m (with associated external funding of $2.3m) due to a revised assessment of the level of carryforwards from 2020/21. Further adjustments to the capital expenditure budget for the year have been approved but there has been no change to the formal resolution approving increased debt levels as there was a high likelihood the full capital expenditure programme for the year would not be achieved.

Council’s Financial Strategy (updated version adopted 7 July 2021) contains the following ratios which the Council has determined to be prudent maxima:

· Net debt as a percentage of total assets not exceeding 20%

· Net debt as a percentage of total revenue not exceeding 200%

· Net interest as a percentage of total revenue not exceeding 15%

· Net interest as a percentage of annual rates income not exceeding 20%

An updated version of the Treasury Policy (embracing the Liability Management and Investment Policy), adopted by the Council in August 2020, also contains a number of other criteria regarding debt management.

3. PERFORMANCE

Following the annual review published on 3 May 2021 Council’s S&P Global Rating’s credit rating remained unchanged at AA / A-1+.

Schedule 1 attached shows the details of Council’s debt as at 31 March 2022. Debt levels were within the policy parameters outlined in section 2 of this report.

The summarised gross term debt movements are shown in the following table:

10YP Budget for year (2021/22)

$000

Actual – 3 months (2021/22)

$000

Actual – 6 months (2021/22)

$000

Actual – 9 months (2021/22)

$000

Debt Balance at 1 July 2021

New Debt #

Debt repayments #

163,163

49,184

166,125

20,000

(9,125)

166,125

25,000

(9,125)

166,125

45,000

(9,125)

Closing Balance

Comprising:

Bank advance (on call)

LGFA short term advance

LGFA & Council stock

212,347

177,000

182,000

202,000

Deposits held for debt repayment

Net term debt

(10,000)

167,000

(15,000)

167,000

(35,000)

167,000

# A portion of the Council’s debt is drawn on a daily basis – daily drawdowns and repayments are not included in these figures but the net draw or repayment for the year to date is shown as part of new debt or debt repayment as appropriate.

Gross debt at 31 March 2022 was $202m compared with $166.125m at 1 July 2021. $35m of this sum was raised in advance to prefund debt maturing on 5 April 2022, 5 August 2022 and 5 April 2023.

Movements in recent years are shown in the following graph:

Actual finance costs incurred during the 9 months (including interest, line fees and the effects of payments relating to swaps) amounted to $3.67m compared with the budget for the year of $5.09m. $122k of this expense related to $10m of new loans raised in July 2021, $5m of new loans raised in October 2021 and $20m raised on 14 March 2022 to prefund debt maturing on 5 April 2022, 5 August 2022 and 17 April 2023 respectively. This cost was more than offset by unbudgeted interest income of $140k received from short term investment of this $35m. The effective average interest rate for the 9 months was 2.7% compared with the budgetary assumption of 2.8%.

The Council has entered financial instruments related to its debt portfolio utilising swap trading lines established with Westpac, ANZ and BNZ. The details of these are shown in Schedule 2 attached.

The value of these instruments is measured in terms of its ‘mark-to-market’, ie. the difference between the value at which the interest rate was fixed and the current market value of the transaction. Each of these transactions was valued at the date they were fixed and again at the reporting date. Financial reporting standards require the movement in values to be recorded through the Council’s Statement of Comprehensive Income (Profit & Loss Account). They have been revalued as at 31 March 2022 and show a reduction in the book value liability of $5.3m for the quarter and $11.6m for the year to date.

Swaps with a notional value of $5m matured during the first quarter. During November the maturity dates for swaps with a notional value of $18m were extended and the fixed interest rates applying to them reduced. These changes were negotiated in an effort to moderate the impact of increasing interest rates on rates for 2022/23 and to lengthen the fixed cover in place.

The Council’s Treasury Policy contains guidelines regarding the measurement of treasury risk as follows:

· Funding and liquidity risk is managed by the Council maintaining a pre-set portion of its debt in a range of maturity periods, eg. < 3 years, 3 - 7 years, 7 years +.

· Interest rate risk is managed by the Council maintaining the ratio of debt that is subject to floating versus fixed interest rates within pre-set limits.

The position compared to the policy is illustrated in the graphs in Schedule 3 attached.

The funding & liquidity risk position can be summarised as follows:

· Council’s liquid position complies with policy.

· Since 30 June 2021 $45m of term debt has been raised. $35m of this is to pre-fund debt maturing in April 2022, August 2022 and April 2023 and has been invested in the meantime at a rate that for the time being more than covers the cost of the interest expense. The remainder is funding capital expenditure in the 2022/23 year.

The interest rate risk position describes the portion of the overall forecast debt that is fixed versus floating and can be summarised as follows:

· There is significant uncertainty about forecast levels of future debt – this very much depends on a number of factors including future Council decisions on the proposed capital expenditure programme and Government decisions on the future structure of the provision of three waters.

· At the present time the strategy being adopted is to use the forecast debt figures from the 2021-31 10 Year Plan but reducing them by 30% each year. Past experience is the Council has struggled to deliver its full programme of budgeted work so it is prudent to assume this reduced requirement. Failing to do this would likely lead to the Council’s portfolio becoming over-hedged.

· At the present time projected debt levels that exclude debt assigned for three waters programmes are also being considered to make sure the Council is not over-hedged if water related debt is effectively transferred (or paid off) on 30 June 2024.

· At the present time interest rates are being fixed at or near policy minimums based on the debt forecasts mentioned above and that is the position as at 31 March. As market opportunities present themselves consideration is being given to increasing the hedging to nearer policy mid-points.

The Treasury Policy also contains requirements in relation to counterparty credit risk – this relates to investments and financial risk management instruments.

The position as at 31 March is shown in Schedule 4 attached. As can be seen from the schedule the policy limit for the level of investments at Westpac of $15m has been exceeded by $20m. $10m of this investment matures on 4 April leaving the limit exceeded by $10m until August. The most recent investment of $20m was made with Westpac as they offered an interest rate that significantly exceeded what was on offer elsewhere. The limit per counterparty is considered to be very conservative and will be considered for review when the policy is next reviewed. In the meantime, the Policy requires that counterparties exceeding the limits are required to be reported to the Council.

As at 31 March 2022, all remaining policy targets had been met.

Council’s credit lines with the banks include an $18m three-year credit facility with Westpac Bank (maturing 31 October 2025) and a revolving $25m three-year facility with ANZ Bank (maturing 31 March 2025).

4. CONCLUSION & NEXT STEPS

Finance costs for the year (including interest, line fees and the effect of swaps) were $3.67m compared with the budget for the year of $5.09m.

In conjunction with Council’s treasury advisors hedging instruments are regularly reviewed in an effort to ensure the instruments are being utilised to the best advantage as market conditions change. The level of hedging cover is also reviewed as the forecasts of future debt levels are revised.

Council’s borrowing strategy is continually reviewed, in conjunction with Council’s treasury advisors, to ensure the best advantage is taken of Council’s quality credit rating.

A further performance report will be provided after the June 2022 quarter.

5. Compliance and administration

Does the Committee have delegated authority to decide?		Yes
Are the decisions significant?		No
If they are significant do they affect land or a body of water?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to Goal 5: A Driven & Enabling Council This report outlines the outcomes of a fundamental administrative activity of the Council.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	Managing the Council’s treasury activity is a fundamental component of day to day administration of the Council.

Attachments

Schedules 1 to 4 ⇩

Memorandum

TO: Finance & Audit Committee

MEETING DATE: 27 April 2022

TITLE: Options for Reallocation of Events Related Budgets

Presented By: Anton Carter, Group Manager Community Services

APPROVED BY: Kerry-Lee Probert, Acting Chief Customer Officer

RECOMMENDATION(S) TO Council

1. That Council approve Option 1 – reduction of events and events related budgets by $100,000 to top up programme 1675 – Covid Relief Fund.

1. ISSUE

This memorandum is in response to the Notice of Motion;

”That the CE quantify the likely underspend across PNCC 2021/22 events and events-related budgets and provide a report on options to reallocate that surplus to provide relief and support to the city's events sector.“

2. Background

2.1 Identified unspent event related funds

Officers have identified $235,000 of underspend relating to events and events-related budgets within the current financial year.

The underspend relates to programmes, activities and works that were budgeted to be carried out by the Central City Library, Major Events and Community Events, but cannot proceed in the current COVID-19 environment.

These budgets are operational in nature and must be spent by 30 June 2022, with remaining surplus’ to be applied to debt repayment.

2.2 Reallocation of unspent event related funds

Officers investigated various possible options for the reallocation of these identified funds, firstly by connecting with a small group of individuals with knowledge and connections with the City’s events sector. These individuals included the Community Development team, PNCC Venues, Major Events team, Creative Sounds, The Regent, independent event producers and several community not-for-profit organisations.

Following these discussions a range of options was considered:

· Topping up the Covid Relief Fund;

· Reviving a previous Council event programme called ‘Palmy Unleashed’;

· Establishing a new ‘Kick Starter’ small events fund with the aim to stimulate activity;

· Commissioning several large community events;

· Providing extra financial support for existing events;

· Topping up existing PNCC event funds;

· Creating a partnership with an established organisation to administer a small events fund for the events sector to access.

After analysing the options the following barriers were identified:

· Ability to deliver initiatives by the end of the financial year;

· Officers’ capacity to set up and administer a new small grants fund and allocate the funding by the end of this financial year;

· Capacity for an established organisation to administer a small events fund.

While many of the above options would achieve the aim of supporting the City’s events sector by having a forward focussed approach, most were seen as not feasible for the reasons highlighted above and therefore not investigated further.

2.3 Covid-19 Relief Fund

The Covid-19 Relief Fund (CRF) was proposed to the Community Development Committee in August 2020 as part of the City Recovery Plan. It was to be a one-off $200,000 relief fund to provide support to community organisations that have been impacted by COVID-19.

The aim of the fund was to be a rapid response fund, without undue hurdles, to provide financial relief to community organisations that need it. Council Officers were to work alongside applicants to ensure quick decisions and timely payments.

Since its inception in August 2020, the fund has received a total of 53 applications and supported a total of 37 applications. A total allocation of $195,394.80 has been made as at 1 April 2022, with the average grant allocated being $5,280.94.

The current balance of the CRF as at 1 April 2022 is $4,605.20 and is likely to be fully spent by mid-April 2022.

A list of successful applicants and amounts are provided as Appendix 1.

During the draft Annual Budget 2022/23 process, Council adopted at its meeting on 16 March 2022 the following budget for the CRF.

“That an additional budget of $100,000 is allocated to continue the COVID-19 Relief Fund for 2022/23.”

3. Options

Option 1: $100,000 – Top up to the existing Covid Relief Fund (CRF)

This option offers support to those impacted by Covid-19 and would be allocated within this financial year 2021/22. The $100,000 is reallocated from the Central City Library Events budget, and the figure of $100,000 was chosen as it provides sufficent funds to respond to potential applicants up until 30 June 2022. Any remaining amount can be returned to the overall surplus for this financial year.

The CRF is an existing funding mechanism set up to provide targeted support to those impacted by Covid-19. Utilising this current mechanism would be an effective way to respond to the needs of a broad cross-section of the community, including the events sector.

This funding approach has a retrospective focus and event organisers and local suppliers are able to apply to this fund if they meet the criteria.

The current CRF criteria states:

Individuals or businesses engaged in delivery of a community event are also eligible to apply if they meet all other criteria.

· Experience an increase in demand for the applicant’s services due to Covid-19

· A loss of anticipated income due to Covid-19

· Unexpected costs due to Covid-19.

This provides opportunity for those in the events sector to apply to this fund if they can primarily show a loss of income due to the cancellation of events and activities due to the ongoing effects of Covid-19.

Option 2: Do not top up the Covid Relief Fund

This option does not provide relief and support to the city's events sector.

Description of options

Table A: Weighing up options

Options

Benefits

Risks

1 – Top-up Covid Relief Fund

· Existing mechanisms set up to offer support and relief

· Rapid response to applications

· Minimal barriers for access

· Broad criteria

· Events sector can apply

· Provides support up until 30 June 2022

· Broad criteria, not just specific to City’s events sector

· Retrospective approach, not forward focused

· Doesn’t provide a direct stimulus to the City’s events sector

2 – Do not top up Covid Relief Fund

· Identified event related budgets contribute towards Council surplus to repay debt

· The remaining balance of identified unspent funds may be used for another purpose

· Identified events related budgets are not reallocated to provide direct support and relief for the City’s events sector

4. Other support for the City’s events sector

4.1 PNCC community and major events

For Council delivered events, local suppliers were secured where possible, with early confirmation and minimum deposits factored into cancellation policies, therefore ensuring that where events were cancelled, most contractors received 50% deposits.

Support has been provided to event organisers and contracted suppliers throughout the 2021/22 financial year where possible. For major event funding, all incurred and eligible production costs were considered by the Events team when considering appropriate levels of retained funding. Event planning and production incurs considerable cost prior to event delivery and to ensure the city’s trusted event producers are able to continue delivering iconic events, continued funding has been provided to ensure the return of these events in the 22/23 financial year.

4.2 Ongoing Council support

Council offers a range of support to the events sector of which funding is one. Officers provide advice for developing events and funding support and when the traffic light system changes Officers will be contracting local suppliers regarding Council events.

Other Council funds that support the events sector and require an applicant to be a registered entity or umbrella-ed by a registered entity are;

· Arts Event Fund

· Community-Led Initiatives Fund

· Creative Communities Scheme

· Major Events Fund

4.3 Change to the Traffic Light system

The current ‘Red’ setting impacts on the number and range of events able to be held. The lifting of capacity limits for outdoor events on 25 March 2022 has had an immediate and positive impact, particularly on outdoor sporting events.

With the cancellation of so many events over the past 12 months, there is a backlog of people wanting to hold events. As was seen after the first lockdown in 2020, the ‘bounceback’ for hosting events and audience participation was strong.

A move to ‘Orange’ setting will have a major impact on the City’s events sector. Officers are continually working with event organisers to support their planning in anticipation of this change.

4.4 Central Government funding support

Various central government agencies have offered a range of Covid-19 relief support funding for the cultural and events sector including;

· Ministry of Culture & Heritage (MCH)

· Creative New Zealand (CNZ)

· Inland Revenue Department (IRD)

· Ministry of Business, Innovation & Employment (MBIE)

While this support seems significant, it appears (based on the number of successful applicants listed on websites) very little of the funding has reached organisations or individuals in Palmerston North. This is mainly due to the specific nature of each of the funds criteria, the threshold required for eligibility and national competition.

Officers are encouraging suitable applicants to register and apply for national funding where appropriate.

5. NEXT STEPS

If Option 1 is supported:

· The CRF can be topped up immediately and be available for applicants to access until the end of this financial year 2021/22.

· Targeted promotion to the City’s events sector will help raise awareness of this support available.

6. Compliance and administration

Does the Committee have delegated authority to decide?		No
Are the decisions significant?		No
If they are significant do they affect land or a body of water?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to Goal 2: A Creative and Exciting City
The recommendations contribute to the achievement of action/actions in Arts and Heritage The action is: Provide artists and arts organisations with advice and support in governance, funding, marketing and communications, collaboration, and event and project management.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	Contributes by offering financial support to the events sector who have been impacted by Covid-19, by providing relief and support so those involved in the events sector can continue to operate and provide valuable services needed for a flourishing events sector.

Attachments

Appendix 1: Covid Relief Fund successful applicants as at 1 April 2022 ⇩

[1] The programme is subject to Waka Kotahi subsidy and conditional on acceptance at the next three yearly funding approval process.

Susan Baty (Chairperson)
Karen Naylor (Deputy Chairperson)
Grant Smith (The Mayor)
Vaughan Dennison	Lorna Johnson
Renee Dingwall	Bruno Petrenas
Lew Findlay QSM	Aleisha Rutherford
Patrick Handcock ONZM	Stephen Armstrong
Leonie Hapeta

1.	FY 2022 Quarterly Report March 2022 ⇩
2.	FY 2022 Performance Measures March 2022 ⇩
3.	FY2022 Quarterly Report to Council March 2022 Supplementary Material ⇩
4.	Three Waters Stimulus Funding Changes ⇩