Agenda of Council - Wednesday, 6 November 2024

Council MEETING

6 November 2024

Order of Business

1. Karakia Timatanga

2. Apologies

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.

4. 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.

5. Public Comment

To receive comments from members of the public on matters specified on this Agenda or, if time permits, on other matters.

6. Tribute - Peter Michael Willis Page 7

7. Petition: Flooding at Julia Wallace Retirement Village Page 9

8. Progress on Stormwater Improvements for Milson Page 11

Memorandum, presented by Mike Monaghan, Manager- 3 Waters and Ricki Freemantle, 3 Waters Activity Manager.

9. Confirmation of Minutes Page 15

That the minutes of the ordinary Council meeting of 30 October 2024 Part I Public be confirmed as a true and correct record.

Reports

10. Transport Funding Implications 2024-2027 Page 21

Memorandum, presented by Glen O'Connor, Manager - Transport & Development, Scott Mancer, Manager - Finance and James Miguel, Senior Transport Planner.

11. Annual Budget 2025/26 - Timing and Programme Budgets Page 37

Memorandum, presented by Scott Mancer - Manager Finance and Steve Paterson - Manager Financial Strategy.

12. Māori Ward referendum implications Page 83

Memorandum, presented by Waid Crockett, Chief Executive.

13. Exemption of the Manawatū-Whanganui Regional Disaster Relief Fund, and Palmerston North Performing Arts Trust from being Council Controlled Organisations Page 89

Memorandum, presented by Sarah Claridge, Governance Advisor.

14. Palmerston North Performing Arts Trust - Annual Report and Annual Accounts 2023/24 Page 93

Memorandum, presented by Hannah White, Democracy & Governance Manager.

15. Council Work Schedule Page 103

Recommendations from Committee Meetings

16. Presentation of the Part I Public Sustainability Committee Recommendations from its 16 October 2024 Meeting Page 107

17. Presentation of the Part I Public Community Committee Recommendations from its 23 October 2024 Meeting Page 109

18. Karakia Whakamutunga

19. Exclusion of Public

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:

General subject of each matter to be considered		Reason for passing this resolution in relation to each matter	Ground(s) under Section 48(1) for passing this resolution
12	Attachments for Māori Ward referendum implications	MAINTAIN LEGAL PRIVILEGE: This information is covered by legal privilege because it contains legal advice or could become a matter before the courts	s7(2)(g)
20.	Presentation of the Part II Confidential Sustainability Committee Recommendations from its 16 October 2024 Meeting	For the reasons set out in the Sustainability Committee meeting of 16 October 2024, held in public present.
21.	Presentation of the Part II Confidential Community Committee Recommendations from its 23 October 2024 Meeting	For the reasons set out in the Community Committee meeting of 23 October 2024, held in public present.

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.

Memorandum

TO: Council

MEETING DATE: 6 November 2024

TITLE: Progress on Stormwater Improvements for Milson

Presented By: Mike Monaghan, Manager- 3 Waters and Ricki Freemantle, 3 Waters Activity Manager

APPROVED BY: Chris Dyhrberg, General Manager Infrastructure

RECOMMENDATION TO Council

1. That Council receive the memorandum titled ‘Progress on Stormwater Improvements for Milson’ presented to Council on 6 November 2024.

1. ISSUE

Several houses were flooded during the heavy rainfall that occurred in Palmerston North on 18 and 19 August this year. Some of these houses have experienced flooding in the past, including units in the Julia Wallace Retirement Village, adjacent to Milson Line.

Note the rainfall experienced in August 2024 was the highest August on record, while the event of 18 and 19 August had an expected return period of once every ten years.

2. BACKGROUND

A portion of the Julia Wallace Retirement Village adjacent to Milson Line has been constructed over a historic water course, the Milson Stream. Portions of the stream have been piped (including in Milson Line) while other sections remain as open channel, albeit realigned from the original course of the stream (e.g. the section behind Purdie Place).

Allowing development over an existing stream can result in issues with overland flow paths. Overland flow paths are typically triggered during significant rainfall events, as water is no longer contained within the piped or channel network and tries to return to the location of the original stream. Hence, understanding and allowing for overland flow paths is critical to ensuring flood mitigation. Figure 1 shows the original alignment of the Milson Stream, which has since been diverted and built over.

The Milson Stream drains a large catchment, extending from Kelvin Grove through to the Mangaone Stream adjacent John F Kenney Drive. This section of the stormwater network has a very flat gradient (or slope) and hence small changes to the network either up or downstream can have significant impacts to water levels in other sections. Piping parts of the stream can cause issues upstream during heavy rainfall, which is the case with the area around Milson Line.

Extensive modelling has been undertaken of this catchment to identify the best solution to help mitigate flood levels. The modelling has shown that installing a larger pipe in Milson Line will help to reduce water levels (and hence flooding) upstream (including around the Julia Wallace Retirement Village), but would increase downstream levels, hence transferring the flood risk - which is not acceptable.

In September this year, the model was fine-tuned to provide an optimal solution that will help to reduce the occurrence of localised flooding without transferring risk to downstream properties. This scenario includes an overland swale on top of the existing DN1,800 pipe adjacent the Julia Wallace Retirement Village, as well as a low wall along the boundary to guide the secondary flow path away from the village and connecting a DN600 stormwater main in Milson Line.

Council has recently purchased the small strip of land between the Milson Combined Church and the Julia Wallace Retirement Village. This strip is critical to enable the construction of the swale and the wall. Combined, these two features will help to provide an overland flow path during heavy rainfall events, thereby reducing the flood water level in the adjacent properties, including Purdy Place.

Figure 1. Original Milson Stream alignment (area in question inside red box).

Figures 2 & 3 show ponding inside the retirement village, following a rainfall event in October.

Figure 2. Ponding inside Julia Wallace Retirement Village - looking towards Milson Line.

Figure 3. Ponding inside Julia Wallace Retirement Village – showing boundary fence with adjacent commercial site.

3. NEXT STEPS

Detailed design is underway on the swale and low wall that will be constructed in the newly acquired strip of land, as well as a small modification to an existing DN600 stormwater pipe in Milson Line. The designs are scheduled to be completed by January 2025, with construction planned immediately thereafter during the summer construction season.

Officers will engage with the Julia Wallace Retirement Village to help better understand the secondary flow paths and discuss options and plans to help mitigate localised ponding/flooding.

Staff will continue with detailed design and construction to help mitigate flooding in the Milson Line area, and to discuss overland flow path requirements and impacts with the Julia Wallace Retirement Village management team.

4. Compliance and administration

Does Council 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 objectives?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 4: He tāone toitū, he tāone manawaroa Goal 4: A sustainable and resilient city
The recommendations contribute to the achievement of objective/objectives in: 13. Mahere wai 13. Water Plan The objective is: To help mitigate flooding in the Milson Line catchment.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The recommendations in this memorandum refer to work that is in flight with existing funding through the Long-Term Plan. As such, the outputs help to mitigate flooding in one part of the Milson Line catchment, adjacent the Julia Wallace Retirement Village.

Attachments

Nil

Palmerston North City Council

Minutes of the Council Meeting Part I Public, held in the Council Chamber, First Floor, Civic Administration Building, 32 The Square, Palmerston North on 30 October 2024, commencing at 9.00am.

Members

Present:

Councillor Debi Marshall-Lobb (in the Chair) and Councillors Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Lew Findlay, Roly Fitzgerald, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

Apologies:

Grant Smith (The Mayor), Councillor Leonie Hapeta (early departure on Council business)

Councillor Hapeta left the meeting at 10.26am after consideration of clause 183-24. She was not present for clauses 184-24 to 186-24 inclusive.

	Karakia Timatanga
	Councillor Fitzgerald opened the meeting with karakia.

180-24

Apologies

Moved Debi Marshall-Lobb, seconded Vaughan Dennison.

RESOLVED

1. That Council receive the apologies.

Clause 180-24 above was carried 15 votes to 0, the voting being as follows:

For:

Councillors Debi Marshall-Lobb, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Lew Findlay, Roly Fitzgerald, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

181-24

Notification of Additional Items

Moved Debi Marshall-Lobb, seconded Vaughan Dennison.

RESOLVED

That Council agree to consider the following late report titled Toitū Te Tiriti Hīkoi event: Level and nature of Council support for the reasons below:

Reason for lateness:
Presentation to 30 October meeting allows for more sufficient planning time, rather than publishing in 6 November agenda.

Reason for urgency:
Confirmation of the level and nature of Council support will aid in appropriate planning for the event to be held 16 November.

Clause 181-24 above was carried 14 votes to 0, the voting being as follows:

For:

Councillors Debi Marshall-Lobb, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Lew Findlay, Roly Fitzgerald, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

Councillor Billy Meehan did not vote.

182-24

Confirmation of Minutes

Moved Debi Marshall-Lobb, seconded Vaughan Dennison.

RESOLVED

That the minutes of the ordinary Council meeting of 2 October 2024 Part I Public, Part II Confidential and Part IIB be confirmed as a true and correct record.

Clause 182-24 above was carried 13 votes to 0, with 2 abstentions, the voting being as follows:

For:

Abstained:

Councillors Billy Meehan and William Wood.

The meeting adjourned 9.11am

The meeting resumed 9.20am

183-24		Annual Report 2023/24 - Recommendations from Risk & Assurance Committee Meeting of 23 October 2024 Scott Mancer, Finance Manager updated Council on the proofing changes made since the Risk & Assurance Committee had reviewed the Annual Report. He tabled the list of minor changes made to the Annual Report, and the Auditor’s Opinion (attached). Debbie Perera, Audit Director, Audit New Zealand commented on the Auditor’s Opinion. Council’s Annual Report received two qualifications on non-financial performance indicators: · Waters services complaints–ongoing issue with how the Council counted water services complaints. However the Audit Director was pleased that systems were changed in April 2024 to accurately record complaints. · Issues around recording resource consents - due to new software, there have been issues with accurately recording the legal days required to issue resource consent. The Auditor’s Opinion noted a ‘limitation of scope” as Auditors could not verify the accuracy of Council’s data. Councillor Karen Naylor, Deputy Chair of the Risk and Assurance Committee presented the recommendations.
		Moved Karen Naylor, seconded Vaughan Dennison. RESOLVED 1. That Council adopt the recommendations from the Risk & Assurance Committee of 23 October 2024: Adoption of Annual Report 2023/24 (clause 29-24) Memorandum, presented by Scott Mancer, Manager - Finance and Debbie Perera, Audit Director. The COMMITTEE RECOMMENDS 3. That Council note that, assuming Audit clearance is given, the final Auditor’s ‘opinion’ from Audit New Zealand will be received following expected adoption by Council on 30 October 2024 and Council signing of the reports. 4. That the Chief Executive engage Elected Members in the process of identifying Key Achievements for inclusion in Annual Reports 2025 onwards. 5. That key achievements in the 2024 Annual Report be amended to: (b) Key achievements for Goal 2 (page 12) – substitute bus launch with highlighting CCO visitor numbers. (c) Key achievements for Goal 3 (page 15) – substitute environmental health contract with completion of Papaioea Place.
		Clause 183-24 above was carried 15 votes to 0, the voting being as follows: For: Councillors Debi Marshall-Lobb, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Lew Findlay, Roly Fitzgerald, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.
		Moved Karen Naylor, seconded Vaughan Dennison. RESOLVED 2. That Council adopt the Annual Report 2023/24 and Summary Annual Report 2023/24 (as amended).
		Clause 183-24 above was carried 14 votes to 0, the voting being as follows: For: Councillors Debi Marshall-Lobb, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Lew Findlay, Roly Fitzgerald, Patrick Handcock, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.
		Moved Karen Naylor, seconded Vaughan Dennison. Note: On the Committee recommendation: 5. That key achievements in the 2024 Annual Report be amended to: (a) Key achievements for Goal 1 (page 8) – remove reference to Featherston Street. The recommendation was lost 6 votes to 9, the voting being as follows: For: Councillors Mark Arnott, Lew Findlay, Leonie Hapeta, Billy Meehan, Karen Naylor and William Wood. Against: Councillors Debi Marshall-Lobb, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Patrick Handcock, Lorna Johnson, Orphée Mickalad and Kaydee Zabelin.

Councillor Hapeta left the meeting at 10:26am

184-24	Results of the 2024 Residents' Survey Memorandum, presented by Kian Lee, Policy Analyst (Research and Monitoring). An additional motion was put to consider running focus groups to complement the information collected from the survey.
	Moved Debi Marshall-Lobb, seconded Vaughan Dennison. RESOLVED 1. That Council note the results of the 2024 Residents’ Survey
	Clause 184-24 above was carried 14 votes to 0, the voting being as follows: For: Councillors Debi Marshall-Lobb, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Lew Findlay, Roly Fitzgerald, Patrick Handcock, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.
	Moved Brent Barrett, seconded Rachel Bowen. RESOLVED 2. That Council refer a budget for focus group research to the Annual Budget 2025-2026 process.
	Clause 184-24 above was carried 11 votes to 3, the voting being as follows: For: Councillors Debi Marshall-Lobb, Brent Barrett, Rachel Bowen, Vaughan Dennison, Lew Findlay, Roly Fitzgerald, Patrick Handcock, Lorna Johnson, Orphée Mickalad, William Wood and Kaydee Zabelin. Against: Councillors Mark Arnott, Billy Meehan and Karen Naylor.

185-24

Toitū Te Tiriti Hīkoi event: Level and nature of Council support

Memorandum, presented by Todd Taiepa, Poutoko Aporei - Principal Māori Advisor, and Luke McIndoe, Head of Events.

Moved Debi Marshall-Lobb, seconded Patrick Handcock.

RESOLVED

1. That the level and nature of Council support for the Toitū Te Tiriti Hīkoi event scheduled visit to Palmerston North on Saturday 16 November 2024 be:

c. To respond to the use of public spaces managed by the Council and partner with Rangitāne o Manawatū and other agencies to welcome and host Toitū Te Tiriti Hīkoi in Palmerston North.

2. That it be noted that the Chief Executive will utilise existing operational budgets to support the Toitū Te Tiriti Hīkoi event.

Clause 185-24 above was carried 12 votes to 2, the voting being as follows:

For:

Councillors Debi Marshall-Lobb, Brent Barrett, Rachel Bowen, Vaughan Dennison, Lew Findlay, Roly Fitzgerald, Patrick Handcock, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor and Kaydee Zabelin.

Against:

Councillors Mark Arnott and William Wood.

186-24

Council Work Schedule

Moved Debi Marshall-Lobb, seconded Vaughan Dennison.

RESOLVED

1. That Council receive its Work Schedule dated 30 October 2024.

Clause 186-24 above was carried 14 votes to 0, the voting being as follows:

For:

Councillors Debi Marshall-Lobb, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Lew Findlay, Roly Fitzgerald, Patrick Handcock, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

	Karakia Whakamutunga
	Councillor Fitzgerald closed the meeting with karakia.

The meeting finished at 12.00pm.

Confirmed 6 November 2024

Deputy Mayor

Memorandum

TO: Council

MEETING DATE: 6 November 2024

TITLE: Transport Funding Implications 2024-2027

Presented By: Glen O'Connor, Manager - Transport & Development, Scott Mancer, Manager - Finance and James Miguel, Senior Transport Planner

APPROVED BY: Waid Crockett, Chief Executive

RECOMMENDATIONS TO Council

1. That Council approve adjustments to the Active and Transport Activity Budgets for the 2024/25 financial year as detailed below:

a. Decrease NZTA Subsidy Operating Revenue by $736k as detailed in Attachment 1.

b. Decrease Operating Expenditure by $1,283k as detailed in Attachment 1.

c. Decrease NZTA Subsidy Capital Revenue by $883k for Renewal Programmes as detailed in Attachment 2.

d. Amend the Capital Renewal Programme Expenditure as detailed in Attachment 2.

e. Decrease NZTA Subsidy Capital Revenue by $1,913k for Capital New/Growth Programmes as detailed in Attachment 3.

f. Amend Capital New/Growth Programme Expenditure as detailed in Attachment 3.

2. That Council approve adjustments to the Roading Activity Budgets for the 2024/25 financial year as detailed below:

a. Decrease NZTA Subsidy Operating Revenue by $60k as detailed in Attachment 4.

b. Decrease Operating Expenditure by $2,081k as detailed in Attachment 4.

c. Increase NZTA Subsidy Capital Revenue by $305k for Renewal Programmes as detailed in Attachment 5.

d. Amend the Capital Renewals Programme Expenditure as detailed in Attachment 5.

e. Decrease NZTA Subsidy Capital Revenue by $2,461k for Capital New/Growth Programmes as detailed in Attachment 6.

f. Amend the Capital New/Growth Programme Expenditure as detailed in Attachment 6.

3. That Council amend the operational programme budgets (both NZTA Subsidy Revenue and Expenditure) for business cases and transport planning, as detailed in Table 1.

4. That Council note that by approving the changes in 1 – 3 that this will result in an operating deficit for the Transport Group of Activities of $1,593M and that this will be funded by loans from a net reduction in the capital programme and a transfer of $336k from loan funded Capital Programme 628 – Totara Road Wastewater Consent Renewal Upgrade.

5. That Council note that the recommendations above relate to the 2024/25 Financial Year and implications for the Transport Programme and future years (2025/26 & 2026/27) budget implications will be referred to the appropriate Annual Plan process.

1. ISSUE

1.1 At the Council meeting on 2 October 2024, considering Transport funding implications, Council gave officers direction on how to approach the 2024/25 budget shortfall and prioritisation. (See resolution 163-24).

1.2 Council asked the Chief Executive to report back on financial modelling, service levels and any other potential consequences on Year 1 of the Long-Term Plan service delivery for:

· Local Road Pothole Activity Class (resurfacing, drainage, rehabilitations, etc.) and Local Road Operations Activity Class (maintenance and operations of road network), by funding to the NZTA funded levels

· Walking and Cycling Activity Class (includes footpaths, cycleways and shared path) by funding an additional $1.1M for footpaths to the funding secured from NZTA

· Capital new works (upgrades and new assets), by prioritising;

o Programme 2526 - Amberley Ave Bridge,

o Programme 159 - Kelvin Grove Road – Safety Improvements $1M,

o Programme 2335 - Stoney Creek Road – Safety Improvements $500k,

o Programme 1804 – City-Wide – Road Drainage – Additional Drainage Upgrades $120k, and

o deferring other programmes to reallocate Council’s local share funding

· The Manawatū Regional Freight Ring Road Business Case, by reallocation of $100k transport debt funding.

· And that other omissions identified in the report be covered by reallocating Council’s local share funding and debt funding the remaining operational and renewal omissions of circa $1.7M, as shown in Table 2 of that report.

1.3 This paper brings back the information requested in a collated form for final elected member decision on changes to the 2024/25 financial year budget. The indicative programme budgets for 2025/26 & 2026/27 financial years for the Transport activity have been provided via the Annual Budget paper, also for discussion at the 6 November Council meeting.

2. BACKGROUND

NZ Transport Agency Waka Kotahi (NZTA) funding

2.1 In September 2024, NZ Transport Agency Waka Kotahi (NZTA) released its funding allocation from the National Land Transport Fund (NLTF) through its National Land Transport Programme (NLTP).

2.2 The three-year funding allocated to Council for the 2024-2027 period saw Council receive a total funding pool of $56.2M (unless otherwise stated all amounts are inclusive of both NZTA and Council local share) or 43% of associated Long-Term Plan (LTP) budgets. Many other local authorities received similar levels of funding.

2.3 Each Council and NZTA have an agreed Funding Assistance Rate (FAR). The FAR for PNCC is 51%, with Council’s local share of 49%. In some instances, specific to certain projects or activity types the FAR can vary and can be either higher or lower than the 51%.

2.4 The confirmed funding through the NLTP has created a shortfall in Council’s LTP budget. The shortfall over the next three years is 51% of the total budget variance of $73.8M or $37.7M.

2.5 The NLTP is prepared every three years and allocates funding to various programmes based on the direction set out in the Government Policy Statement on Land Transport (GPS).

2.6 The 2024-27 GPS was finalised in June 2024, much later in the planning and budgeting cycle than expected. In this GPS, the Government outlined that their priorities include Roads of National and Regional Significance and road maintenance, with a focus on pothole prevention.

2.7 Officers understand that NZTA may seek applications for a country wide $100M fund for Low Cost Low Risk safety type projects. At the time of writing this report we are awaiting details and the criteria around the fund’s allocation. It appears that this is a three-year fund, that will include Council’s local share. On the basis that $33 million per year may be available, Council’s pro rata share of that in could be circa $500k per year, inclusive of Council’s 49% local Share ($250k). It should be noted there is currently no provision for this local share funding in the proposed Transport budgets.

Storm repairs above budget

2.8 August 2024 was the wettest August on record for our city, with September and October also very wet. As a result of this weather, there was a large amount of damage to our transport network, especially along the foothills of the Tararua ranges.

2.9 The storm repairs carried out over August and September are likely to cost circa $1.78M ($360k Operating Expenditure and $1.42M Capital New Expenditure). This is $1.53M above our budgeted programme (# 2380) of $250k for emergency reinstatements in the 2024/25 year. The final cost of these repairs will be dependent on the exact repair methods utilised, along with any further damage prior to these repairs being completed. Until the repairs are in place, a relatively small amount of rain can cause an oversized amount of damage.

2.10 It is estimated we will receive a subsidy of circa $900k from NZTA for this work, leaving Council with a shortfall in its budgets of $750k in capital and operating. We are waiting for confirmation from NZTA of their subsidy amount.

2.11 It is important that these repairs are undertaken in full to limit further damage and reduce risk to users of our transport network.

2.12 The emergency works budgets that Council has will need to be increased, over time, to ensure that suitable budgets are available to respond to these types of events.

Amberley Avenue bridge above budget

2.13 The Amberley Avenue bridge is now forecast to cost $4.2M in totality. This is $575k more than budgeted.

2.14 This additional cost is largely due to three metre longer bridge piles being required than originally planned, additional condition surveys for nearby properties and added costs for service relocations. The piles, due to poorer subsoils than expected, were required to be three metres longer than expected, with these piles adding $255k of this additional cost. A greater number of nearby properties will be surveyed, prior to and after the installation of the bridge piles, to identify any issues caused from the piling operations, and this will add $50k of costs. Additional costs for the relocation of utility services will add $270k of costs.

Service Level Changes

2.15 Officers believe that the proposed re-allocations detailed in this paper will limit service reductions by focusing funding on road resurfacing, rehabilitations and drainage type activities. This will allow the focus to continue to be on pothole repairs, and importantly, pothole prevention.

2.16 Active Transport will have some service levels impacts, with a basic level of service funded for this activity. However, additional funding has been applied to footpath renewals, to enable the delivery of a footpath programme similar to last year. Work such as the sweeping of cycle lanes, cycle lane markings and vegetation control will be able to be undertaken out of the proposed funding of the omissions, so there should be minimal service level impacts in these areas.

2.17 As per Council direction, $120k has been retained for city wide drainage upgrade, which will allow a selected number of minor, but high impact, drainage upgrades to be undertaken.

2.18 Safety improvements, such as new raised safety platforms or intersection improvements, will be delayed and considered as part of a future LTP / RLTF process, in order to seek co-funding from NZTA.

2.19 The focus for capital new will be the Stoney Creek Road and Kelvin Grove Road areas, with a safety focus. Upon completion of the detailed designs for these works later this financial year, a works programme detailing costs and subsequent timings will be finalised. The delayed works will now be considered as part of a future LTP / RLTF process in order to seek co-funding from NZTA.

2.20 The Manawatū Regional Freight Ring Road Business Case (MRFRR) will be progressed, 100% funded by Council. We have consolidated all professional services budgets for transport planning to fund the MRFRR in Table 1.

Table 1: Amended Transport planning operating Programmes

Transport Planning Operating Programmes	Proposed 24/25 Budget	Proposed 25/26 Budget	Indicative 26/27 Budget
	$000's	$000's	$000's
Revised Budget (Current)
Manawatu Regional Freight Ring Road IBC	500	450	450
Plan Change G (Aokautere) SSBC	-	-	450
Parking Management Plans	-	50	50
Bus Hub DBC	-	225	225
Roads and Streets Framework	-	-	60
Total Transport Operating	500	725	1,235

Proposed Budget (No NZTA Funding)
Manawatu Regional Freight Ring Road IBC	100	380	662
Plan Change G (Aokautere) SSBC	-	-	-
Parking Management Plans	-	-	-
Bus Hub DBC	-	-	-
Roads and Streets Framework	-	-	-
Total Transport Operating	100	380	662

2.21 The delay of the safety and capital new works, to a future LTP / RLTF process, will have an impact on our supplier market, both for professional services and physical works. It is likely that some expert capability and capacity, that was in place to deliver this work, will be lost from our supplier market, making it harder for Council to deliver future works.

Carry forwards which impact 2024/25 budget

2.22 There are some projects that were not completed at 30 June 2024 and carried over into the 2024/25 year.

2.23 As there is now no NZTA funding for these projects in the 2024/25 financial year, Council will need to 100% fund the completion of these projects.

2.24 These projects are estimated to cost in the order of $895k, as summarised in Table 2 below:

Table 2: Carry Forward projects from 23/24 with 24/25 spend

Programme	Actual Year to date.	Forecasted Total Expenditure to complete works required
	$000’s	$000’s
Programme 2390 Low Cost/Low Risk	$593	$750
Programme 1944 Village Road Upgrades	$108	$145
Total	$701	$895

3. Discussion

3.1 There is $4.9M of local share funding available to be reallocated, as identified in the Council meeting on 2 October.

3.2 At the Sustainability Committee on 16 October 2024, a paper was presented in the confidential part of that meeting, which resulted in committee recommendations to be considered by Council today.

3.3 Should Council agree the committee recommendations and allocate funding to this project for 2024/25, recommendations 1(f) and 4 in this paper will need to be adjusted to reflect this decision. In preparation, officers have ensured there is a buffer available within the baseline, should Council adopt these recommendations. It should also be noted that any decision for this programme, will impact associated programme budgets for 2025/26 being considered at this same Council meeting.

3.4 Officers recommend that the re-allocation of funding for the 2024-25 financial year occurs as shown in Table 3 below.

Table 3: Proposed Reallocation of Local Share Funding

Transport Expenditure Budgets - Programme/ Workstream	24/25 Revised Budget	Proposed 24/25 Budget	Variance
	$000s	$000s	$000s
Operating

Active Transport
Revenue	(1,029)	(293)	736
Expenditure	5,411	4,128	(1,283)
Net Active Transport Operating	4,382	3,835	(547)

Roading
Revenue	(11,435)	(11,375)	60
Expenditure	29,994	32,075	2,081
Total Roading Operating	18,559	20,699	2,140

Total Transport Operating	22,941	24,535	1,593

Renewals

Active Transport
Continue	1,150	1,100	(50)
Part Defer	900	318	(582)
Defer	-	-	-
			-
Total Active Transport Renewals	2,050	1,418	(632)

Roading
Continue	9,120	10,498	1,378
Part Defer	-	-	-
Defer	-	-	-

Total Roading Renewals	9,120	10,498	1,378

Total Expenditure Transport Renewals	11,170	11,916	746

Capital Revenue Active Transport Renewals	(1,046)	(163)	883
Capital Revenue Roading Renewals	(4,503)	(4,808)	(305)
Total Revenue Transport Renewals	(5,549)	(4,971)	578

Capital New/Growth

Active Transport
Continue	200	200	-
Part Defer	2,000	50	(1,950)
Defer	1,750	-	(1,750)
			-
Total Active Transport Capital New/Growth	3,950	250	(3,700)

Roading
Continue	8,391	8,966	575
Part Defer	7,350	4,019	(3,331)
Defer	500	-	(500)
Total Roading Capital New/Growth	16,241	12,985	(3,256)

Total Expenditure Transport Capital New/Growth	20,191	13,235	(6,956)

Capital Revenue Active Transport New/Growth	(1,913)	-	1,913
Capital Revenue Roading New/Growth	(4,361)	(1,899)	2,462
Total Revenue Transport New/Growth	(6,274)	(1,899)	4,374

Transport Operating and Capital	54,302	49,686	(5,413)
Transport Capital Revenue	(11,823)	(6,870)	5,748
	42,480	42,815	336

Table 4: Overall Summary

Overall finance summary	24/25 Revised Budget	Proposed 24/25 Budget	Net Increase/ (Decrease)
	$000's	$000's	$000's

Active Transport Operating	4,382	3,835	(547)
Roading Operating	18,559	20,699	2,140

Total Transport Operating	22,941	24,535	1,593

Active Transport Renewals	2,050	1,418	(632)
Roading Renewals	9,120	10,498	1,378
Total Transport Renewals	11,170	11,916	746
Active Transport New/Growth	3,950	250	(3,700)
Roading New/Growth	16,241	12,985	(3,256)
Total Transport New/Growth	20,191	13,235	(6,956)

Active Transport Capital Revenue	(2,959)	(163)	2,796
Roading Capital Revenue	(8,864)	(6,707)	2,157
Total Transport Revenue	(11,823)	(6,870)	4,952

Total Debt Increase (Operating and Capital)			336

Offset by deferral of P-628 Totara Road WWTP			(340)
Potential Net Impact to Council Debt			(4)

4. NEXT STEPS

4.1 Officers will work through the impacts of funding and service level implications as part of the annual plan process for 2025/26 and 2026/27.

4.2 A communications plan around any transport funding implications will be developed and implemented.

5. Compliance and administration

Does the Council 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 objectives?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to the achievement of objective/objectives in: 3. Mahere tūnuku 3. Transport Plan The objective is: Develop, maintain, operate and renew the active and public transport network to deliver Council goals, the purpose of this plan, and the Government Policy Statement on Transport.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The issues discussed in this report are key to delivering a safe, well maintained and well utilised transport network.

Attachments

1.	24-25 Active Transport Operating Budget Changes ⇩
2.	24-25 Active Transport Renewals Budget Changes ⇩
3.	24-25 Active Transport Capital New-Growth Budget Changes ⇩
4.	24-25 Roading Operating Budget Changes ⇩
5.	24-25 Roading Renewals Budget Changes ⇩
6.	24-25 Roading Capital New-Growth Budget Changes ⇩

Memorandum

TO: Council

MEETING DATE: 6 November 2024

TITLE: Annual Budget 2025/26 - Timing and Programme Budgets

Presented By: Scott Mancer - Manager Finance and Steve Paterson - Manager Financial Strategy

APPROVED BY: Cameron McKay, General Manager Corporate Services

RECOMMENDATIONS TO Council

1. That Council note the process and timing of the Annual Budget 2025/26 as outlined in Table 1 of the “Annual Budget 2025/26- timing and programme budgets” presented to Council on 6 November 2024.

2. That Council recommend the following programmes for inclusion in the draft 2025/26 Annual Budget:

a. Operating programmes as outlined in Attachment 1 (as amended, if required),

b. Transport operating programmes as outlined in Attachment 2 (as amended, if required),

c. Transport capital programmes as outlined in Attachment 3 (as amended, if required) and,

d. Non-Transport programmes as outlined in Attachment 4 (as amended, if required).

3. That Council provide direction to officers to support the Centrepoint Theatre rebuild by either:

a. In-kind support – officer time to support with fundraising, promotion, communications etc; or

b. Resource consent and building consent costs – the application process for this is already underway; or

c. Grant funding – the quantum to be determined by the Council as part of the Annual Budget process; or

d. Do not provide any support.

4. That Council note directions given today will be brought back for Council consideration on 11 December 2024.

1. ISSUE

Officers are in the process of developing the Annual Budget 2025/26 (based on year 2 of the Long-term Plan) (LTP) for consideration by the Council.

This report outlines the proposed timetable for the budget preparation and adoption and focuses on the proposed programmes that form part of the budget.

The outcomes of this report and the separate report to this same meeting regarding the funding of transport programmes will help officers bring together an overall financial picture for Council to consider on 11 December. The 11 December report will address key assumptions such as inflation, interest rates, insurance & utility costs.

2. BACKGROUND

The Council is required to adopt an Annual Budget (Plan) by 30 June 2025. This budget will be based on year 2 of the LTP. During the budget preparation process, it will be necessary to consider among other things:

· Whether there are any changes required to significant forecasting assumptions

· How to address the transport activity given the lower levels of transport subsidy that are now available

· What financial and other assumptions to make in relation to the Nature Calls project and the Local Waters Done Well programme

· The size and deliverability of the proposed capital programme

· The proposed rating system, taking into consideration the impacts of the 2024 city revaluation.

3. TIMING OF BUDGET PROCESS

The following table outlines the proposed timing of the budget process.

Table 1: Annual Budget 2025/26

Month	Date	Forum	Process
November	6	Council	Confirm budget timing and provide direction on composition and timing of capital and operating programmes
December	11	Council	Consider overall financial position in the light of updated operating budgets and capital and operating programme budgets Consider revenue requirements (rates and fees & charges) Consider provisional information on impacts of city revaluation on rates incidence
February	12	Council	Consider full draft budget and draft consultation document and fees & charges schedules
March	5	Council	Adopt Consultation Document and budget for consultation (consultation period 17 March to 11 April)
April	30 April & 1 May	Council - Hearings	Hearing of submissions
May	14	Council	Deliberate on submissions and any updated information from officers
June	4	Council	Adopt Annual Budget Set rates

4. Programme budgets

4.1 Operating Programmes

Proposed operating programmes are shown in Attachment 1. The Transport operating programmes have been provided in Attachment 2.

4.2 Capital Programmes

Given the scale and complexity of the Transport capital programmes they are shown as a separate Attachment 3.

The proposed budgets for 2025/26 and beyond for Transport programmes have been updated to reflect the revised subsidy assumptions consistent with the separate report on transport funding.

Other programmes are listed in Attachment 4.

Where there have been major changes, a comment has been provided against the programme in the appropriate schedule, except for Transport.

The following graph and associated tables show the proposed total capital expenditure (renewals, growth and strategic/levels of service) with the latest revised budget for 2024/25 and the LTP budgets for 2025/26, 2026/27 and 2027/28. For each of the years from 2025/26 onwards a proposed Annual Budget (AB) column is shown.

A summary of the high-level breakdown of the capital programmes are shown in the graph and tables below.

Table 2: Capital Programme Summary 2024/25 to 2027/28 Financial Years

$’000	2024/25 Revised Budget	2025/26 LTP	2025/26 Draft Annual Budget	2026/27 LTP	2026/27 Draft Annual Budget	2027/28 LTP	2027/28 Draft Annual Budget
Renewal	$33,303	$35,598	$35,565	$35,921	$35,519	$40,346	$40,438
Growth	$14,845	$12,684	$12,531	$25,014	$22,460	$19,485	$23,028
Level of Service	$46,959	$77,259	$67,413	$97,160	$76,904	$156,700	$136,225
Total Capital Expenditure	$95,107	$125,541	$115,508	$158,095	$134,883	$216,531	$199,720

The proposed total capital expenditure programme of $115.5M compares with Year 2 of the LTP $125.6M and the revised budget for 2024/25 of $95M. The majority of the increase from 2024/25 to 2025/26 relates to strategic capital (level of service) programmes.

The largest of these programmes, in dollar terms are:

Prog #	Programme	2025/26 $M
727	Material Recovery Facility Development	5.8
2440	Pasifika Centre Expansion	3.9
1194	CET Arena Masterplan Development	8.2
1895/2239	Te Motu o Poutoa Development (incl. design & consenting)	6.9

The size of the proposed programme (in dollar terms) raises the issue of whether it is realistic in terms of our capability to deliver it. In general terms there is not a direct relationship between the dollar value of the total programme and deliverability. The draft programme for 2025/26 includes slightly fewer, but on average more expensive programmes.

Deliverability risk is being progressively reduced by:

· Becoming more proficient in the use of new project management tools

· Augmenting in-house resources with external consultants to deliver high-risk, high-complexity projects that are outside the capability and capacity of internal resources.

5. COmmittee Resolutions

5.1 Centrepoint Theatre:

5.1.1 At the Culture and Sport Committee meeting on 25 September, Elected Members heard from the Centrepoint Theatre about their proposed rebuild of their central city site. They indicated an early estimate of the total cost of the project was $5.1M and that firmer estimates from a quantity surveyor were expected shortly. The timetable involves fundraising during 2025, building during 2026 and reopening in 2027. Centrepoint requested a financial commitment from the Council of $250k (including remission of some fees) over perhaps three years.

5.1.2 The Committee resolved:

“That the Chief Executive provide options for the Council to support the Centrepoint build project, in time for any decisions to be referred to the Annual Budget.”

5.1.3 Officers consider the range of options available include:

· In-kind support – officer time to support with fundraising, promotion, communications etc

· Resource consent and building consent costs – the application process for this is already underway

· Grant funding – the quantum to be determined by the Council as part of the Annual Budget process

· Do not provide any support

5.1.4 Council guidance through a resolution today indicating a preferred option (Recommendation 3) will mean that officers can further investigate and factor this into draft budgets to be presented to Council on 11 December.

5.2 Shared Pathway – New & Link Improvement:

5.2.1 At the Sustainability Committee on 16 October 2024, a paper was presented regarding the Shared Pathway & Link Improvements (Programme 2057). The Committee recommendations are due to be considered by Council today. The Committee recommendation from the public part of this meeting was:

That Council considers 1b and 1c in conjunction with the 6 November 2024 report to Council regarding Transport Funding, with a view to enabling flexible progress on the Ashhurst riverside and the Feilding shared paths.

Recommendation 1b – Direct the Chief Executive to continue engagement with affected landowners and progress planning and preparations for the Notice of Requirement to be lodged in Year 4 of the Long-Term Plan, or earlier if all directly affected landowners provide their written support prior to lodgement.

Recommendation 1c – Direct the Chief Executive to continue engagement with affected landowners and lodge the Notice of Requirement over the 2024-2027 Financial Years; with land acquisition and construction commencing from Year 4 of the Long-Term Plan.

5.2.2 Since the Committee recommendations relate to Year 2 onward, these committee recommendations should also be considered alongside other programme prioritisation set out in this paper. Should Council agree either or both of the recommendations above, officers will include in further iterations of budget drafts.

5.3 Residents Survey – Focus Group:

5.3.1 At the Council meeting of 30 October, Elected Members referred consideration of budget for focus group to research results of the resident’s survey to the budget process. Doing so would mean adding a new operational programme for the 2025/26 Financial Year. Officers estimate that $50k would be required to action this. Should elected members resolve today to include this, officers will include a new programme into the Operational Budget report to Council on 11 December 2024.

6. NEXT STEPS

6.1 Based on the decisions of this meeting a further report (encompassing the operating budgets) will be prepared for consideration on 11 December. This will also incorporate any decisions on Community Committee recommendations.

6.2 A separate report on that date will also inform the outcomes of the 2024 city revaluation (assuming it is signed off by the Valuer General on 29 November). It is planned to provide some interim information on the potential impacts on rates incidence.

7. Compliance and administration

Does the Council 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 objectives?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Governance and Active Citizenship Plan.
The recommendations contribute to the achievement of objectives: Make well-informed decisions on city issues Gather and use data to inform decision-making and council activities.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The Annual Budget process is an essential procedural step to enable the Council to fulfill its legislatively prescribed planning & reporting accountability obligations.

Attachments

1.	Operating Programmes - excluding Transport ⇩
2.	Operating Programmes - Transport ⇩
3.	Capital Programmes - Transport ⇩
4.	Capital Programme - excluding Transport ⇩

Memorandum

TO: Council

MEETING DATE: 6 November 2024

TITLE: Māori Ward referendum implications

Presented By: Waid Crockett, Chief Executive

APPROVED BY: Cameron McKay, General Manager Corporate Services

RECOMMENDATIONS TO Council

1. That Council note the advice.

2. That Council note the Chief Executive will produce communications that encourage voter participation and explain Council’s decisions with regard to Te Pūao Māori ward to date and what to expect in voting papers.

3. That Council agree an unbudgeted $20,000 in the 2024/25 financial year to facilitate the preparation, printing and dissemination of educative materials.

1. ISSUE

1.1 On 7 August 2024, Council resolved as follows:

“That Council resolve to retain Te Pūao Māori Ward and that the Chief Executive provide further information to Council on potential implications of Council not proceeding with a binding referendum” (132-24).

1.2 This memorandum is divided into two parts. The first part provides the information sought in resolution 132-24, and the second part deals with communications for the poll.

2. BACKGROUND

2.1 Officer advice provided to the 1 May 2024 Council meeting set out the history of Te Puāo Māori ward and confirmed Rangitāne o Manawatū support for its establishment and retention. Council resolved at 61-24 as follows:

“That Council formally endorse its current representative structure of a Te Hirawanui General Ward and a Te Pūao Māori Ward.

That a submission reflecting this position be made to the select committee process.”

2.2 Council resolved at the 7 August 2024 meeting (132-24) to retain the Te Pūao Māori ward. Councils that had established Māori wards were required to resolve by 6 September 2024 whether to disestablish or retain their Maori wards. If a Council resolved to retain the ward, a binding poll on the retention of the ward would be held at the 2025 local elections. The result of the poll will be binding for the 2028, and 2031 local elections.

PART 1 - CONDUCTING THE POLL

3. LIMITATIONS

3.1 The Local Government (Electoral Legislation and Māori Wards and Māori Constituencies) Amendment Act 2024 (“The Act”) requires Council to hold a binding poll on the retention of the Te Pūao Māori ward, in conjunction with the 2025 election. This is a consequence of Council voting to retain the ward.

3.2 Council is unable to prevent a poll on the retention of the Te Pūao Maori ward from being held by the Electoral Officer.

3.3 Council confirmed the appointment of the Electoral Officer at the 7 August 2024 meeting (142-24). The poll will be conducted independently by the Electoral Officer, who is responsible for the conduct of the 2024 Palmerston North City local government election, any by-election and any poll^{^[1]}.

3.4 Under the Local Electoral Act 2001 (LEA), the Electoral Officer is not subject to the direction of Council.^{^[2]} Any resolution directing the Electoral Officer will have no effect as it is an offence for an electoral officer to not comply with the Act.^{^[3]} As the poll will be held in conjunction with the triennial 2025 local elections, any interference or undue influence on the Electoral Officer or their delegate may also affect the Council election.

4. RISKS

4.1 There are risks to Council attempting to direct the Electoral Officer to not hold a poll or unduly influencing their statutory independence. These risks include:

4.2 Invalidating the result of the poll by order of the District Court to void the result and require another poll to be conducted. The Council would have to meet the costs associated with another poll which must be conducted within 89 days of a poll being declared void.^{^[4]}

4.3 Demonstrating non-compliance with the Local Electoral Act and triggering ministerial intervention set out in Part 10 LGA 2002 and explained in the advice attached. There is cost recovery claimed by central government of local government for this. With the appointment of a Commissioner, the Minister must believe there is a problem that is impairing or likely to impair good local government and a crown review team would need to investigate first.

4.4 If Council chose to direct the Electoral Officer not to run the poll and a legal challenge was mounted to oppose the Council decision, a judicial review would be an unbudgeted financial cost. Should the review quash the decision, this could result in disruption to the electoral process and damage to the Council’s credibility as a decision-maker, and thus reflect on Council’s strategic risk Public Trust (to come to committee in November).

5. advice

5.1 The Electoral Officer will conduct a poll on the retention of the Te Pūao Māori ward at the 2025 local body election. No further action is required by consequence of the 7 August 2024 decision to retain Te Pūao Māori Ward.

Part ii - communications on the poll

6. LIMITATIONS

6.1 The Local Electoral Act 2001 sets out principles that Council and the Electoral Officer must consider when making decisions. The relevant principles at section 4 are:

“(c) public confidence in, and public understanding of, local electoral processes through –

…

(ii) the provision of elections that are managed independently from the elected body:

(iii) protection of the freedom of choice of voters and the secrecy of the vote:

(iv) the provision of transparent electoral systems and voting methods and the adoption of procedures that produce certainty in electoral outcomes:”

6.2 Section 42 LGA requires the Chief Executive to be responsible to the local authority for “facilitating and fostering representative and substantial elector participation in elections and polls held under the Local Electoral Act 2001.”^{^[5]} This has been an additional responsibility of a chief executive since 2019, however the Act does not set a target or place an obligation to undertake a specific action. Council issues a communications protocol for candidates and staff over the pre-election period in line with the s4 principles, and guidance from the Office of the Auditor General (OAG) and Taituarā. The OAG guidance is that information should be timely, accurate, complete, fair and neutral. Complete is defined as “all the necessary information is included for that readers can form a balanced view.” Fair is defined as “information presented in an objective, unbiased and equitable way.” The organisation exercises care to ensure ratepayer funds are not used to promote a particular candidate or to be perceived to be supporting a candidate in any way.

6.3 A breach of section 4 of the Local Electoral Act by the Hutt City Council was the subject of a District Court decision in Aukuso v Hutt City Council.^{^[6]} The decision concerned a challenge to a poll conducted by the Hutt City Council after communications from elected members and newspaper advertisements about the poll. It was argued that Hutt City Council had taken a public position on the poll and used ratepayer funds to do so. The Court held that this was a breach of the Local Electoral Act and “amounted to an interference with the conduct” of the poll.^{^[7]}

7. RISKS

7.1 In Aukuso, the District Court found that using ratepayer money on promoting an official position on a poll amounted to an irregularity which was sufficient to void the result of the poll.

7.2 Promoting an official ‘Council position’ on the poll could invite a challenge to the validity of the poll and may cause the OAG to investigate whether the Council are using public resources in compliance with the LEA and LGA.

8. advice

8.1 Council promoting a position on the poll is inconsistent with the principles in s4 of the LEA. It is also outside Council’s agreed tolerance levels for both reputational and legal risk.

9. NEXT STEPS

9.1 The Chief Executive will produce communications encouraging voter participation in the election including the poll, explain what the Te Pūao Māori ward is and what to expect in the voting papers. These communications will be compliant with the LEA and the OAG/Taituarā good practice guidance for electoral communications.

9.2 Council is due to conduct a representation review in 2027, prior to the poll result implementation of 2028. Council will undertake the representation review following the 2026 General Election with the knowledge of the poll result. Further steps could be investigated at that time.

9.3 Under section 76 of the Local Electoral Act, voting documents for polls must include a full statement of the proposal of the poll and whether or not the poll is binding on the local authority. In line with the principle of the LEA that all qualified persons have a reasonable and equal opportunity to cast an informed vote, the Local Electoral Regulations 2001 (Reg 46) give discretion to the Electoral Officer to include neutral information on the matter or matters that are the subject of the poll with the voting documents, including seeking independent advice If required to confirm its neutrality. Officers will assist the Electoral Officer to include information to voters in this way.

9.4 Officers will also develop a communications plan to reach voters with information on actions they can take to be ready to vote, how to vote, where to vote, what the referendum question is asking, how the voting papers are set out, and the history of the Council’s decisions in this space.

10. Compliance and administration

Does Council 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 objectives?		No
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: (Not Applicable)
The recommendations contribute to the achievement of objective/objectives in: 14. Mahere mana urungi, kirirarautanga hihiri 14. Governance and Active Citizenship Plan
Contribution to strategic direction and to social, economic, environmental and cultural well-being	This memorandum provides legal advice to Elected Members to support decision-making and uphold robust election processes.

Attachments

1.	Legal Advice (1) - Confidential
2.	Legal Advice (2) - Confidential

Memorandum

TO: Council

MEETING DATE: 6 November 2024

TITLE: Exemption of the Manawatū-Whanganui Regional Disaster Relief Fund, and Palmerston North Performing Arts Trust from being Council Controlled Organisations

Presented By: Sarah Claridge, Governance Advisor

APPROVED BY: Cameron McKay, General Manager Corporate Services

RECOMMENDATION TO Council

1. That Council exempt the Manawatū-Whanganui Regional Disaster Relief Fund from being a Council Controlled Organisation for three years to 31 August 2027.

2. That Council exempt the Palmerston North Performing Arts Trust from being a Council Controlled Organisation for three years from 30 June 2025 to 30 June 2028, pursuant to section 7 of the Local Government Act 2002.

1. ISSUE

1.1 Council has received a request from Horizons Regional Council (as administrator) that the Manawatū-Whanganui Regional Disaster Relief Fund Trust (the Trust) exemption status as a council-controlled organisation (CCO) be renewed.

1.2 This report provides an opportunity for Council to also review the status of Council’s other exempted CCO, the Palmerston North Performing Arts Trust, which is due for review by June 2025.

2. Background and Review of Council’s Current Exempted CCos

The Manawatū-Whanganui Regional Disaster Relief Trust

2.1 In March 2004, Council resolved that the Manawatū-Whanganui Regional Disaster Relief Fund Trust be established: to provide financial or other assistance to people who have suffered any damage or loss following a significant disaster. The Trust raises funds through public donations.

2.2 The Trust is represented by an elected member from each of the territorial authorities of the Manawatū – Whanganui region and Horizons Regional Council. Council’s representative is Cr Vaughan Denison.

2.3 The Trust was granted exemption from being a council-controlled organisation from its inception because the nature and scope of its activities only take place after a significant adverse event. An exemption to the Trust was last granted by Council in April 2022, which was retrospectively implemented from August 2021.

Review and recommendation

2.4 Horizons Regional Council has requested all the councils of the region to agree a continued exemption for the Trust.

2.5 Because of the Trust’s small size and limited activities, officers consider that the benefits of continuing the exemption outweigh the costs. In 2022/23 the Trust’s total expenditure was $3,413, it made a loss of $1,101 (the 2023/24 annual return is yet to be filed; due December). There would be significant additional costs if the Trust was required to meet the obligations of a Council Controlled Organisation.

2.6 The Trust’s exemption status expired in August 2024. Officers recommend that Council confirm the Trust’s exemption status until 31 August 2027, noting that the exemption will be backdated to August 2024.

The Palmerston North Performing Arts Trust

2.7 The Palmerston North Performing Arts Trust was established in 1998 by Palmerston North City Council to provide educational opportunities for the development of talented emerging performing artists in the Palmerston North region for the benefit of the public at large of Palmerston North.

2.8 To achieve its purposes, the Trust runs the “Arts Heart” educational development project scheme (up to $5,000 per project) which is designed to assist the education and development of a group performance art project in Palmerston North.

2.9 Administration of the Arts Heart funding scheme is the main activity of the Trust, which generally only meets two or three times per year.

2.10 The Trust was first granted an exemption by the Council in April 2004, and subsequently every three years. The Trust’s exemption status was last reviewed in June 2022.

Review and recommendation

2.11 Because of the Trust’s small size and limited activities, it is considered that the benefits of continuing its exemption outweigh the costs. In 2023/24, the Trust’s total expenditure was $6,950; it made a loss of $4,438.

2.12 There would be significant additional costs if the Trust were to be required to meet all the obligations of a CCO. If granted an exemption, the Trust will continue to provide its Annual Report to the Council each year.

2.13 Officers recommend the Trust’s exemption status be confirmed until June 2027.

3. Legal Requirements

3.1 Section 7 of the Local Government Act 2002 (LGA) enables local authorities to exempt small organisations from being Council Controlled Organisations. The Council must take into account two matters before any exemption is made, namely:

(a) the nature and scope of the activities provided by the organisation; and

(b) the costs and benefits, if an exemption is granted, to the local authority, the council-controlled organisation, and the community.

3.2 Any exemption granted to a CCO must be reviewed within three years of the date of the original grant, and after the first review, at intervals of not more than three years.

4. NEXT STEPS

4.1 Council’s decision on the Manawatū-Whanganui Disaster Relief Fund will be communicated to Trustees via Horizons Regional Council.

4.2 Exempted status will only apply once all councils associated with the Trust have passed similar resolutions.

5. Compliance and administration

Does the Council 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: (Not Applicable)
The recommendations contribute to the achievement of objective/objectives in: 14. Mahere mana urungi, kirirarautanga hihiri 14. Governance and Active Citizenship Plan The objective is: Ongoing review of governance systems and structures to support Council’s effectiveness and reputation.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	Exempting the trust boards from the CCO reporting requirements of the LGA enables the Trusts to focus on their core matters.

Attachments

NIL

Committee Work Schedule

TO: Council

MEETING DATE: 6 November 2024

TITLE: Council Work Schedule

RECOMMENDATION TO Council

1. That Council receive its Work Schedule dated 6 November 2024.

COUNCIL WORK SCHEDULE 6 November 2024

#	Estimated Report Date	Subject	Officer Responsible	Current Position	Date of Instruction & Clause
3	~~6 Nov 2024~~ 11 Dec 2024	Food HQ Innovation Limited - Director's company progress report.	GM Infrastructure Services		6 Sept 2023 Clause 143-23
4	~~6 Nov 2024~~	~~Performing Arts Trust Annual Report 2023-2024~~	~~GM Corporate Services~~		~~Terms of Reference~~
5	~~6 Nov 2024~~	~~Transport Funding implications~~	~~GM Infrastructure~~		~~2 Oct 2024~~ ~~Clause 163.6~~
6	~~6 Nov 2024~~	~~Draft Annual Budget 2025/26– review of operating budget~~	~~Chief Executive~~
7	~~6 Nov 2024~~	~~Manawatū River Pathway Project - Funding Implications~~	~~GM Infrastructure~~	~~Included in Transport Funding report.~~	~~Sustainability Committee~~ ~~16 Oct 2024~~ ~~Clause 41-24~~
8	11 Dec 2024	Appointment of CEDA Directors	GM Corporate Services		6 March 2024 Clause 23 -24
9	~~6 Nov 2024~~	~~Māori Ward referendum - implications~~	~~GM Corporate Services~~		~~7 August 2024~~ ~~Clause 132-24~~
10	11 Dec 2024	Delivery Model options for Property - CCO/ Trust to include Summerhays Street.	GM Corporate Services	Clarifying report	1 May 2024 Clause 66.1
11	11 Dec 2024	Review of Fees and Charges 25/26	GM Corporate Services		Terms of Reference
12	11 Dec 2024	City Revaluation – impact on rates	GM Corporate Services		Terms of Reference
13	~~11 Dec 2024~~ 5 Dec 2024	Local Water Done Well – Proposal for consultation	GM Infrastructure
14	early 2025	Report back on Investment Options for PN Airport	GM Corporate Services		6 December 2023 Clause 197-23
15	5 Feb 2025	Civic and Cultural Precinct Master Plan Steering Group - 6-monthly update	GM Strategic Planning		Terms of Reference
16	5 Feb 2025	Centrepoint Build Project- Options for Council support	GM Customer & Community GM Development & Regulatory	To inform Annual Budget 2025/26	Culture & Sport 25 Sept 2024 Clause 30-24
17	5 Feb 2025	Review of CEDA and PNCC Appointment of Directors Policies	GM Corporate Services	Establish working party / agree Terms of Reference	2 October 2024 Clause 172
18	5 March 2025	Draft Annual Budget 2025/26 for consultation	Chief Executive		Terms of Reference
19	~~5 March 2025~~	~~Exemption of Manawatū Whanganui Disaster Relief Fund from being a CCO~~	~~GM Corporate Services~~		~~Terms of Reference~~
20	5 March 2025	Remits from PNCC for consideration	GM Corporate Services		Terms of Reference
21	30 April / 1 May 2025	Hearings of the Annual Budget 2025/26	Chief Executive		Terms of Reference
22	~~7 May 2025~~	~~Exemption of Palmerston North Performing Arts Trust~~	~~GM Corporate Services~~		~~Terms of Reference~~
23	14 May 2025	Deliberations of the Annual Budget 25/26	Chief Executive		Terms of Reference
24	4 June 2025	Remits received from other Territorial Authorities	GM Corporate Services		Terms of Reference
25	4 June 2025	2024 Residents Survey - Action Plan	GM Strategic Planning		Terms of Reference
26	4 June 2025	Adopt Annual Budget 2025-26	Chief Executive		Terms of Reference
27	25 June 2025	Set the Rates for 2025-26	GM Corporate Services		Terms of Reference
28	25 June 2025	Raise Borrowing during 2025-26	GM Corporate Services		Terms of Reference
29	8 October 2025	Parking Contract Review Update - Frog Parking	GM Infrastructure		4 September 2024 Clause 156-24
30	TBC	Summerhays Reports - Partnership Models Expressions of Interest	GM Infrastructure	Lying on the Table	1 May 2024 Clause 66-24 and 74 -24
31	TBC	Effectiveness of Civics Education Initiatives - Annual progress report	TBC		29 May 2024 Clause 95.29 -24

Proactive Release of Confidential Decisions

Date of meeting	Report Title	Released	Withheld

[5] Local Government Act, section 42(2)(da) which references the LEA, see principles at s4(1)(c).

[6] Aukuso v Hutt City Council DCR 322 (District Court, Lower Hutt, 17/12/2003, Judge Davidson, MA88/03).

Grant Smith (Mayor)
Debi Marshall-Lobb (Deputy Mayor)
Mark Arnott	Leonie Hapeta
Brent Barrett	Lorna Johnson
Rachel Bowen	Billy Meehan
Vaughan Dennison	Orphée Mickalad
Lew Findlay (QSM)	Karen Naylor
Roly Fitzgerald	William Wood
Patrick Handcock (ONZM)	Kaydee Zabelin

1.	Covering letter from Chairperson_October 2024 ⇩
2.	Chairperson's Report 2024 ⇩
3.	Financial Statements for the year ended 30 June 2024 ⇩