Regional Council
NOTICE IS GIVEN that the next meeting of the Regional Council will be held in Council Chambers, Bay of Plenty Regional Council, Regional House, 1 Elizabeth Street, Tauranga on:
Thursday, 25 June 2020 commencing at 9.30 am
Fiona McTavish Chief Executive 17 June 2020
Council
Membership
Chairperson Chairman Doug Leeder
Deputy Chairperson Cr Jane Nees
Members All Councillors
Quorum Seven members, consisting of half the number of members
Meeting frequency Six weekly or as required for Annual Plan, Long Term Plan and other relevant legislative requirements
Purpose
Enable democratic local decision-making and action by, and on behalf of, Bay of Plenty communities. Meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses. Set the overarching strategic direction for Bay of Plenty Regional Council as an organisation. Hold ultimate responsibility for allocating financial resources across the Council. Role
Address Local Electoral Act matters and Local Government Rating Act matters. Oversee all matters relating to identifying and contributing to community outcomes. Consider and agree on matters relating to significant new activities or areas of involvement such as infrastructure which are not the responsibility of a specific committee. Provide regional leadership on key issues that require a collaborative approach between a number of parties. Review and decide the Council’s electoral and representation arrangements. Consider issues of regional significance which are not the responsibility of any specific standing committee or that are of such regional significance/high public interest that the full Council needs to decide on them. Adopt Council’s Policy on Significance and Engagement Policy. Develop, adopt and implement the Triennial Agreement, Code of Conduct and Standing Orders.
Page 3 of 166 Consider and agree on matters relating to elected members’ remuneration. Appoint the Chief Executive, and review their contract, performance and remuneration at least annually. Approve all delegations to the Chief Executive, including the authority for further delegation to staff. Oversee the work of all committees and subcommittees. Receive and consider recommendations and matters referred to it by its committees, joint committees, subcommittees and working parties. Approve membership to external bodies and organisations, including Council Controlled Organisations. Develop, adopt and review policies for, and monitor the performance of, Council Controlled Organisations. Monitor and review the achievement of outcomes for the Bay of Plenty Community. Review and approve strategic matters relating to the sale, acquisition and development of property for the purposes of meeting Council’s organisational requirements and implement Regional Council policy. Address strategic corporate matters including property and accommodation. Consider and agree on the process to develop the Long Term Plan, Annual Plan and Annual Report. Adopt the Long Term Plan, Annual Plan and budgets variations, and Annual Report. Adopt Council policies as required by statute (for example Regional Policy Statement and Regional Land Transport Strategy) to be decided by Council or outside of committee delegations (for example infrastructure policy). Develop, review and approve Council’s Financial Strategy and funding and financial policies and frameworks. Institute any proceedings in the High Court that are not injunctive proceedings. Exercise the powers and duties conferred or imposed on Council by the Public Works Act 1981. Delegations from Council to committees
Council has a role to monitor the functioning of all committees. Council will consider matters not within the delegation of any one Council committee. Council may at any time, revoke or modify a delegation to a Council committee, either permanently, for a specified time or to address a specific matter, if it considers there is good reason to do so. The delegations provided to committees may be further delegated to subcommittees unless the power of further delegation is restricted by Council or by statute. It is accepted in making these delegations that: The committees, in performing their delegated functions, powers or duties, may, without confirmation by the Council, exercise or perform them in a like
Page 4 of 166 manner and with the same effect as the Council itself could have exercised or performed them. The delegated powers given shall at all times be subject to their current policies and principles or directions, as given by the Council from time to time. The chairperson of each committee shall have the authority to exercise their discretion, as to whether or not the delegated authority of the committee be used where, in the opinion of the chairperson, circumstances warrant it. Powers that cannot be delegated
Under Clause 32 Schedule 7 of the Local Government Act 2002, Council must make the following decisions:
Make a rate. Make a bylaw. Borrow money or purchase or dispose of assets, other than in accordance with the long-term plan. Adopt the long-term plan, annual plan, or annual report. Appoint a chief executive. Adopt policies required to be adopted and consulted on under the Local Government Act 2002 in association with the long-term plan or developed for the purpose of the local governance statement. Adopt a remuneration and employment policy.
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Page 6 of 166 Public Forum
1. A period of up to 15 minutes may be set aside near the beginning of the meeting to enable members of the public to make statements about any matter on the agenda of that meeting which is open to the public, but excluding any matter on which comment could prejudice any specified statutory process the council is required to follow. 2. The time allowed for each speaker will normally be up to 5 minutes but will be up to the discretion of the chair. A maximum of 3 public participants will be allowed per meeting. 3. No statements by public participants to the Council shall be allowed unless a written, electronic or oral application has been received by the Chief Executive (Governance Team) by 12.00 noon of the working day prior to the meeting and the Chair’s approval has subsequently been obtained. The application shall include the following: name of participant;
organisation represented (if any);
meeting at which they wish to participate; and matter on the agenda to be addressed.
4. Members of the meeting may put questions to any public participants, relevant to the matter being raised through the chair. Any questions must be asked and answered within the time period given to a public participant. The chair shall determine the number of questions.
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Page 8 of 166 Recommendations in reports are not to be construed as Council policy until adopted by Council. Agenda
E te Atua nui tonu, ko mātau ēnei e inoi atu nei ki “Almighty God we ask that you give us wisdom in a koe, kia tau mai te māramatanga ki a mātau the decisions we make here today and give us whakarite mō tēnei rā, arahina hoki mātau, e eke guidance in working with our regional ai te ōranga tonu ki ngā āhuatanga katoa a ngā communities to promote their social, economic, tangata ki tō mātau rohe whānui tonu. Āmine. environmental and cultural well-being. Amen”.
1 Opening Karakia 2 Apologies 3 Public Forum 4 Acceptance of Late Items 5 Confidential Business to be Transferred into the Open 6 Declarations of Conflicts of Interests 7 Previous Minutes
7.1 Regional Council Minutes - 02 June 2020 15 8 Reports
8.1 Chairman's Report 31
8.2 Adoption of the Annual Plan 2020/21 35
APPENDIX 1 - BOPRC Annual Plan 2020-21 - Draft for Adoption 45
APPENDIX 2 - Toi Moana Trust Statement Of Intent 2020-21 - Draft for Adoption 95
APPENDIX 3 - Toi Moana Trust Statement of Investment Policy and Objectives 2020-21 - Draft for Adoption 103
8.3 Setting of Rates 2020/21 113
8.4 Recommendations to Council from Strategy and Policy Committee and Public Transport Committee 131
APPENDIX 1 - SmartGrowth Leadership Group Agreement May 2020 135
Page 9 of 166 APPENDIX 2 - Strategy & Policy Committee 5 May 2020 Tabled Document 2 - SmartGrowth and Central Government Spatial Plan Partnership - Memorandum of Understanding DRAFT (Revised) - Amendments made from Strategy and Policy Committee Meeting 5 May 2020 147
8.5 Disestablishment of the Eastern Bay Road Safety Committee 155
8.6 Regional Coastal Environment Plan 159
8.7 Long Term Plan 2021-2031 pre engagement 163 9 Public Excluded Section 167
Resolution to exclude the public
THAT the public be excluded from the following parts of the proceedings of this meeting.
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 Matter to Reason for passing this Grounds under Section be Considered resolution in relation to this 48(1) LGOIMA 1987 for matter passing this resolution
9.1 Public Excluded Please refer to the relevant Good reason for Regional Council Minutes - section of the open minutes withholding exists under 02 June 2020 Section 48(1)(a)
10.30am: 9.2 Quayside To carry out commercial Good reason for Holdings Ltd Presentation activities withholding exists under Section 48(1)(a)
9.3 Recommendation to To carry out commercial Good reason for Council from Monitoring activities withholding exists under and Operations Committee: The Future of Mangrove Section 48(1)(a) Seedling Management
9.1 Public Excluded Regional Council Minutes - 02 June 2020 169
9.2 10.30am: Quayside Holdings Ltd Presentation
Sir Rob McLeod, Warren Parker and Scott Hamilton will present the Quayside Quarterly Update.
9.3 Recommendation to Council from Monitoring and Operations Committee: The Future of Mangrove Seedling Management 171 10 Confidential Business to be Transferred into the Open 11. Readmit the Public 12. Consideration of Late Items Page 10 of 166 Page 11 of 166
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Previous Minutes
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Page 14 of 166 Minutes of the Regional Council Meeting held in Zoom (Audio Visual meeting), Bay of Plenty Regional Council, Virtual Meeting Room on Tuesday, 2 June 2020 commencing at 9.30 am
Click h ere to enter text.
Present:
Chairman: D Leeder
Deputy Chairman: J Nees
Councillors: L Thurston, P Thompson, N Bruning, W Clark, S Crosby, K Winters, A von Dadelszen, M McDonald, S Rose, T Iti, T White, D Love
In Attendance: Fiona McTavish – Chief Executive, Mat Taylor – General Manager Corporate, Namouta Poutasi – General Manager Strategy & Science, Sarah Omundsen – General Manager Regulatory Services, Chris Ingle – General Manager Integrated Catchments; Karen Aspey – Director, People & Capability, Debbie Hyland – Finance and Transport Operations Manager, Mark Le Comte – Principal Advisor Finance and Transport Operations, Mark Townsend – Engineering Manager, Zhivan Alach - Organisational Performance Manager, Stephanie Macdonald - Community Engagement Team Leader, Kataraina O’Brien - Kaiwhakaruru Maori Partnerships & Relationships, Annika Lane – Acting Regional Development Manager, Alex Miller - Compliance Manager - Primary Industry & Enforcement, Tone Nerdrum Smith – Committee Advisor
1 Karakia
Provided by Cr Iti.
2 Apologies
Nil.
3 Public Forum
1. Scotty Muir
Key Points Resided in Galatea Concerned regarding the high levels of debt for the Rangitāiki River Scheme Sought funding towards a second telemetry site at the Whirinaki Bridge in Galatea Galatea farmers used the water level information to inform decisions on when to move stock to safety If the existing site was adversely affected in a flood event, there would be no actual data from the Whirinaki River site. Page 15 of 166
DRAFT MINUTES TO BE CONFIRMED 1 Regional Council Minutes Tuesday, 2 June 2020
Key Points – Members Noted the current discussions with regards to the Rangitāiki spillway.
2. Paula Gaelic - Western Bay Museum
PowerPoint Presentation – Objective Reference A3544534
Key Points Sought funding specifically for the Museum’s Environmental Education Programme Learning was hands-on with three main themes: Water quality in the Uretara Stream Bush, Birds and Bugs Animal Predators.
In Response to Questions 39% of operation expenditure came from WBOPDC, with the balance sourced from sponsors, grants, donations and external funding sources Had considerable community support from the wider Western Bay of Plenty Community Match Funds had been cancelled due to Covid-19, however was optimistic they could secure funding from other sources Would like to further engage with other schools in the area, however this required additional financial resourcing Main focus was primary school age children.
Key Points – Members Noted that recognition of the four wellbeings was an integrated component of staff’s assessment of funding requests.
3. David White - Water Safety Bay of Plenty
PowerPoint Presentation – Objective Reference A3544536
Cr Winters declared an interest in this presentation.
Key Points Preventing drownings in the Bay of Plenty The water safety strategy was specific to the Bay of Plenty Key initiatives for the next 12 months.
In Response to Questions Obtaining funding was challenging as a number of organisations were approaching the same funding sources.
4. Ian Morton and Karl Gradon - Toi EDA (via Audio Visual Link)
Presentation Slide – Objective Reference A3544535
Key Points Highlighted key aspects of the feedback included in the agenda Noted the key set of principles, being: A Winning Brand Sustainable Economic Development
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Create Thriving Communities Employment rates in the Eastern Bay had been low, and Toi EDA as part of the Create Thriving Communities stream was addressing this through initiatives such as assisting with obtaining driver licences and retraining Funding had been provided by Whakatāne District Council Recognised the active and diverse Māori community in the Eastern Bay Sought funding from Council towards internet connectivity, which was significantly below that experienced in other parts of the Bay of Plenty Considered there was a real opportunity to attract business to Eastern Bay, in particular post Covid-19 when there was an increased appetite for different ways of working.
In Response to Questions Was working with key providers with regards to installation of optic fibre in the Eastern Bay as well as more reliable and wide reaching network to increase connectivity There used to be a specific pillar for Māori economic development, however as it was strongly integrated in all aspects of what Toi EDA did, Iwi had supported that a separate strand was not required Toi Kai Rawa had presented to Toi EDA, however at the time there was less understanding of their plans for Eastern Bay.
4 Acceptance of Late Items
Nil.
5 Confidential Business to be Transferred into the Open
Nil.
6 Declaration of Conflicts of Interest
Cr Thompson – Appointment of CCO Directors (Public Excluded item). Cr Winters – Water Safety Bay of Plenty (NZ) ) Public Forum presentation and Community Views report.
10.44am – The meeting adjourned.
11.02am – The meeting reconvened.
7 Reports
7.1 Annual Plan 2020/21 Deliberations - Introduction
PowerPoint Presentation – Objective Reference A3539306
Fiona McTavish – Chief Executive provided an introduction of the draft Annual Plan 2020/21 and noted the significant impact of Covid-19.
Key Points – Members Wanted to make the most of the current opportunity to address climate change Page 17 of 166
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The climate emergency declaration should be further emphasized in Council’s work programme.
Resolved
That the Regional Council:
1 Receives the report, Annual Plan 2020/21 Deliberations – Introduction.
Rose/Leeder CARRIED
7.2 Annual Plan 2020/21 Deliberations - Overview
PowerPoint Presentation – Objective Reference A3539306 (continued)
Mat Taylor – General Manager Corporate and Debbie Hyland – Finance and Transport Operations Manager provided an outline of the report.
Key Points Unlike Regional Council, a number of territorial authorities were not expecting to adopt an Annual Plan by the end of June 2020.
Resolved
That the Regional Council:
1 Receives the report, Annual Plan 2020/21 Deliberations – Overview.
Rose/Leeder CARRIED
7.3 Annual Plan 2020/21 Deliberations – Budget Update
PowerPoint Presentation – Objective Reference A3539306 (continued)
Mat Taylor – General Manager Corporate and Debbie Hyland – Finance and Transport Operations Manager provided an outline of the report.
In Response to Questions The Civil Defence Emergency Management targeted rates differed depending on the levels of service provided to each territorial authority Toi Kai Rawa had requested a total of $400k of community funds, to be split over two financial years When LGFA was first established, the debt ratio of 250% was relatively conservative. The increase to 280% was representative of there being a better understanding of how the sector managed The suggested short-term increase of the debt ratio to 300% was to accommodate the Covid-19 impact.
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The item was adjourned at this stage to enable the meeting to work through the various requests and proposed budget allocations, before assessing their impacts and passing resolutions at the end of the meeting.
7.4 Annual Plan 2020/21 Deliberations - Civil Defence Emergency Management COVID-19 costs
PowerPoint presentation – Objective Reference A3539306 (continued)
Sarah Omundsen – General Manager Regulatory Services presented this item.
Key Points More than $1m CDEM costs were identified as non-recoverable The targeted rates funded services for the entire Bay of Plenty region Did not intend to increase the targeted rate for CDEM as there was available reserves to absorb current costs.
In Response to Questions Discussions were ongoing between authorities with regards to who was best placed for being responsible for community welfare and recovery.
Key Points – Members During the national emergency, regional authorities were directed by Central Government with regards to required actions and expected levels of service Recognised that emergency management had been delegated to local authorities in recognition having the best knowledge of what was optimal for their local communities.
Resolved
That the Regional Council:
1 Receives the report, Annual Plan 2020/21 Deliberations - Civil Defence Emergency Management COVID-19 costs;
2 Approves additional COVID-19 related costs of $400,000 in the Annual Plan 2020/21;
3 Approves the use Emergency Management reserves to fund the non- recoverable costs of COVID-19 emergency response.
Winters/Nees CARRIED
7.5 Annual Plan 2020/21 Deliberations - Community Views
PowerPoint presentation – Objective Reference A3539306 (continued)
Zhivan Alach – Organisation Performance Manager, Stephanie McDonald - Community Engagement Team Leader, Kataraina O’Brien - Kaiwhakaruru Maori Partnerships & Relationships and Mark le Comte - Principal Advisor, Finance presented this item and responded to questions of the report.
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Cr Winters declared an interest in the Water Safety Bay of Plenty application for funding.
Key Points There were both advantages and risks identified during the due diligence assessment for Toi Kai Rawa Toi Kai Rawa was a relatively recently established Maori EDA, working closely with Priority One Staff had completed the due diligence on the TALT Environmental Services Hub and recommended funding of an initial trial period TALT would also be seeking funding from alternative sources The Environmental Services Hub would be providing support to the wider Bay of Plenty region.
Key Points – Members Suggested that the Toi Kai Rawa application be held over so the identified risks could be worked through Toi Kai Rawa would fill a needs-gap by working across the region in the Māori EDA space Important to recognise the relationship between the Toi Kai Rawa funding request and Council’s core business Suggested initial seed funding could be granted and that funding of EDAs in general should be further discussed as part of the Regional Recovery report Although the Toi Kai Rawa entity was new, the work itself and areas of responsibilities had been in place for a long period of time.
The resolution was moved in parts.
Resolved
That the Regional Council:
1 Receives the report, Annual Plan 2020/21 Deliberations - Community Views;
2 Note feedback received in relation to the Annual Plan 2020/21 Information Document
3 Agree with staff recommendations on community funding requests to;
Proposed Amended Motion 3a:
a. Approve part funding of $150,000 in Annual Plan 2020/21 for Toi Kai Rawa and that this funding will be applied to:
i.Maori Business network $70,000 ii.Social Procurement $30,000 iii.Whenua Maori Solutions Lab $50,000. Von Dadelszen/Nees The amended motion was PUT A division was called for:
For the Motion Cr Von Dadelszen Cr Love Cr Nees Cr Winters.
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Against the Motion Cr Bruning Cr Clark Cr Crosby Cr Iti Chairman Leeder Cr McDonald Cr Rose Cr Thompson Cr Thurston Cr White. The amended motion was LOST
a. Approve part funding of $250,000 in Annual Plan 2020/21 for Toi Kai Rawa and that this funding will be applied to:
i. General Expenses $100,000 ii. Maori Business network $70,000 iii. Social Procurement $30,000 iv. Whenua Maori Solutions Lab $50,000.
Iti/Thompson CARRIED
b. Approve the following funding requests through Annual Plan 2020/21 and invite to apply through the LTP 2021-2031
i. Water Safety Bay of Plenty – $20,000 ii. Western Bay Museum –$20,000. Thompson/von Dadelszen CARRIED
c. Refer the following funding requests for consideration through the proposed Regional Recovery Programme.
i. Toi EDA - $270,000 of which $70,000 is categorised as priority
ii. Toi Kai Rawa Trust, remaining $150,000 of the $400,000 requested in 2020/21.
Leeder/von Dadelszen CARRIED
4 Note progress with funding associated with Maori partnerships;
5 Endorse further work by staff on approaches to youth engagement with direction from Cr Rose, Cr Iti and Cr Nees
Rose/Iti CARRIED
12.40pm – The meeting adjourned.
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1.15pm – The meeting reconvened.
7.6 Annual Plan 2020/21 Deliberations - Regional Development
PowerPoint Presentation – Objective Reference A3539306 (continued)
Namouta Poutasi – General Manager Strategy & Science and Annika Lane – Acting Regional Development Manager presented this item.
Key Points The funding sought would cover expert public transport advice for: Support in-kind for the Transport System Plan Strategic review of the Western Bay PT network (implementing UFTI and Mode Shift Plan) Detailed Business Cases as the next step from the Te Papa Indicative Business Case (IBC) Implement UFTI and joint spatial plan (Western Bay urban growth partnership).
In Response to Questions Approximately $1.5m had been invested in the UFTI transport programme in the 2019/20 financial year Additional expertise would be required for a number of initiatives, e.g. the Te Papa Indicative Business Case There was a shortage of specialist transport planners.
Resolved
That the Regional Council:
1 Receives the report, Annual Plan 2020/21 Deliberations - Regional Development;
2 Approves additional funding of $250,000 in 2020/21 to support the delivery of Western Bay urban growth and transport planning.
Love/Nees CARRIED
7.7 Annual Plan 2020/21 Deliberations - Regional Recovery
PowerPoint Presentation – Objective Reference A3539306 (continued)
Namouta Poutasi – General Manager Strategy & Science and Annika Lane – Acting Regional Development Manager presented this item.
Key Points There were two key components of the Regional Recovery Strategy: o Operational/tactical implementation of economic stimulus packages o Longer-term, strategic, big picture vision for the future.
In Response to Questions
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• Council was required to adapt its procurement methods as directed when funding was granted by Central Government • Social procurement was a new initiative and led by Central Government direction • The inclusion of Māori considerations in procurement was a Central Government requirement • Social procurement was incorporated in Council practices, however was not set out specifically in Council policies • Sought additional resourcing to draw on national and international expertise, as well as supporting the Bay of Connections Leadership Team.
Key Points – Members • The Climate Change Fund should retain its status as a separate initiative to signal Council’s continued commitment.
Items for Staff Follow-up • Clearly identify who was responsible for what and the associated timeframes in the regional recovery activity.
Resolved
That the Regional Council:
1 Receives the report, Annual Plan 2020/21 Deliberations - Regional Recovery;
2 Agrees to endorse a Regional Recovery Project encompassing a Bay of Connections-led Regional Recovery Strategy and a separate BOPRC-specific Recovery Work Programme;
3 Agrees in principle to consideration of future reserve funding for job creation following the completion of detailed work on the Regional Recovery Project in September;
4 Agrees to allocate $50,000 of additional funding within the Annual Plan 2020/21 to complete feasibility work on a sustainable procurement policy and framework for Council;
5 Agrees to allocate $250,000 of additional funding within the Annual Plan 2020/21 for delivery of the Regional Recovery Project.
Leeder/Iti CARRIED
7.8 Annual Plan 2020/21 Deliberations - Safe and Resilient Communities: Flood Protection and Control
Chris Ingle – General Manager Integrated Catchments and Mark Townsend – Engineering Manager presented this item, supported by Debbie Hyland – Finance and Transport Operations Manager.
Key Points • Recognised that due to Covid-19, the public consultation process had been more challenging than usual with its limitations on face-to-face interaction.
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• There was currently sufficient funds in the River Scheme Reserves to cover the proposed operating expenditure (refer recommendations 4 and 5) in the 2020/21 financial year as a result of the proposed additional capital expenditure on the Rangitāiki Floodway Stage 6 and Kaituna Mole projects, and this was a prudent use of available reserves funds given the possibility of central Government funding.
Key Points – Members • There were health and safety issues relating to the Kaituna Mole • Rather than making a pre-emptive increase in the Stage 6 funding, i.e. “just in case”, it would be better to adjust funding in response to genuine cost increases.
Minute Note: The following excerpts from the Independent Review report from Kyle Christensen illustrated the changes in recommendations from the previous draft Annual Plan proposal: • The updated modelling using the hydrology incorporating the 2017 flood suggested that the reduction in flood levels would only be 100 mm and not the 450 mm as previously thought; • The additional $1.8M cost to achieve a minimal reduction in flood levels is not considered justified in terms of the benefits derived from the minimal reduction in risk.
Resolved
That the Regional Council:
1 Receives the report, Annual Plan 2020/21 Deliberations - Safe and Resilient Communities: Flood Protection and Control;
2 Approves additional capital expenditure of $8.355 million in the Annual Plan 2020/21 for Stage 6 of the Rangitāiki Floodway Project, and that this will be loan funded;
3 Approves that the rating impact of Stage 6 of the Rangitāiki Floodway Project be phased in from July 2021 due to the economic impacts of COVID-19 and the possibility of central Government funding;
4 Approves additional capital expenditure of $2.8 million in year 1 of the Long Term Plan 2021-31 for the Spillway construction for the Rangitāiki Floodway Project, and that this is to be loan funded;
5 Approves additional capital expenditure of $1.8 million in the Annual Plan 2020/21 and $564,000 in year 1 of the Long Term Plan 2021-31 for the renewal of the Kaituna Mole.
Bruning/Clark CARRIED
Amended Resolution 6:
6 Notes the implications of the Rock Supply Strategy and requests that a draft procurement plan be provided for consideration by Council on the 6 August 2020 meeting.
Clark/Winters CARRIED
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7.9 Annual Plan 2020/21 Deliberations - Motiti Island
Sarah Omundsen – General Manager Regulatory Services and Alex Miller - Compliance Manager - Primary Industry & Enforcement presented this item.
Key Points The educational programme was aimed towards the boating and fishing community, rather than having a more general approach, to ensure that people going out on the water understood the new rules Council was not well set up for open water compliance monitoring at this stage, so recommended the first year of compliance focus to be an on-water presence to support education and get a sense of whether people were aware of and complying with the rules RMA provisions were clear in that Council could not make resolutions that contravened a decision of the Environment Court.
Key Points – Members Noted the growing tension in this matter, from what appeared to be a lack of ‘front- footing’ by Council, but recognised that Council had been involved in the Court process so staff could not have the conversation with the community There was significant misunderstanding in the community regarding why the protection zones were in place Concerned that the 35 day on-water presence as part of the educational approach was not the priority at this stage, rather the focus should be on creating a better community understanding Sought further funding towards creating public awareness and directed that compliance monitoring be postponed until after the educational/public awareness campaign.
Items for Staff Follow-up Informative signage to include the rules, limitations and any fines applicable for breaches.
Resolved
That the Regional Council:
1 Receives the report, Annual Plan 2020/21 Deliberations - Motiti Island;
2 Notes that this first year of implementation of the Motiti Protection Area provisions will focus on education only;
3 Agrees to the roll-out of a two-stage education plan running throughout the year;
4 Does not agree to the implementation of a compliance monitoring programme based on on-water presence;
5 Approves funding of $41,000 for an education campaign for the Motiti Protection Area provisions for 2020/21;
6 Notes that the monitoring and enforcement of these provisions will not be cost-recoverable under Section 36 of the RMA.
7 Any implementation of the monitoring and enforcement provisions to be considered as part of the Long Term Plan 2021-2031. Page 25 of 166
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Von Dadelszen/Nees CARRIED
7.10 Annual Plan 2020/21 Deliberations – Budget Update (Continued)
As indicated earlier in the meeting, after working through the reports in the agenda, the following resolutions were passed:
That the Regional Council:
1 Receives the report, Annual Plan 2020/21 Deliberations - Budget Update;
1 Notes the overall financial position for draft Annual Plan 2020/21 as set out in this report.
2 Notes the updated Annual Plan 2020/21 Draft Budget set out in this report. This includes a total real rates revenue increase of 0.6%, this is 0.6% lower than the 1.2% total rates increase forecast in the Annual Plan 2020/21 Information Document and that this is before consideration of the deliberation issues and staff recommendations.
3 Notes that $2.3 million of operational cost savings have been identified in the 2020/21 draft budget,
4 Approves the draft budget changes since Council released its Annual Plan 2020/21 Information Document to be incorporated into the draft Annual Plan 2020/21 for adoption and which includes a decrease in budgeted operating expenditure of $10 million and an increase in budgeted capital expenditure of $1.4 million in 2020/21 as set out in this report.
5 Approves lower the Minor Rivers and Drainage targeted rates in 2020/21 as set out in Section 3 of this report are to be incorporated into the draft Annual Plan 2020/21 for adoption.
6 Gives direction on the overall funding approach for the Annual Plan 2020/21 and the proposed use of reserves as discussed in this report, and notes the forecast contributions from reserves to fund operating expenditure in 2020/21 as set out in Section 6 of this report.
7 Notes the proposed changes in treasury management activities for 2020/21 will be reviewed by the Risk and Assurance Committee in June 2020 and recommended for Council approval on 25 June 2020 as part of the adoption of the Annual Plan 2020/21. This includes the recommended updates to Council’s Treasury Policy and the Statement of Investment Policy and Objectives for Toi Moana Trust.
8 Notes the proposed targets for the Toi Moana Trust Statement of Intent to 30 June 2021, as set out in Section 6 of this report.
9 Notes the proposed changes to Local Government Funding Agency foundation policies as set out in Section 6 of this report.
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10 Approves the recommendation to make two minor changes to the constitution of Quayside Holdings Limit in order to comply with NZX updated Listing Rules and delegates to the Chief Executive the authority to execute the resolution on Council’s behalf.
11 Notes that at the Annual Plan 2020/21 adoption meeting on 25 June 2020, Council will be required to resolve that it is financially prudent to continue to set an unbalanced budget which means that operating expenditure is higher than operating revenue. Council is contributing to third party infrastructure projects and as part of the Long Term Plan 2018-2028, Council resolved that it was financially prudent to set an unbalanced budget as the infrastructure grants are better funded from reserves rather than rates increases. Council is proposing to apply reserves balances to reduce rates (general and targeted) in order to lessen the impact on ratepayers in 2020/21. The proposed level of use will lessen the impacts of the current economic situation on community well-being, and financial prudence benchmarks are maintained.
Leeder/Crosby CARRIED
7.11 Public Excluded Section
Resolved
Resolution to exclude the public
THAT the public be excluded from the following parts of the proceedings of this meeting.
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 Matter to Reason for passing this Grounds under Section be Considered resolution in relation to this 48(1) LGOIMA 1987 for matter passing this resolution
Appointment of Directors to To carry out commercial Good reason for Council Controlled activities withholding exists under Organisations Section 48(1)(a)
Leeder/Love CARRIED
8 Closing Karakia
Provided by Cr Iti.
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A3542568 DRAFT MINUTES TO BE CONFIRMED 13 Regional Council Minutes Tuesday, 2 June 2020 The meeting closed at 3.12 pm
Confirmed DATE ______Doug Leeder Chairman Bay of Plenty Regional Council
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A3542568 DRAFT MINUTES TO BE CONFIRMED 14
Reports
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Page 30 of 166 Receives Only – No Decisions
Report To: Regional Council
Meeting Date: 25 June 2020
Report From: Douglas Leeder, Council Chairman
Chairman's Report
Executive Summary
Since the preparation of the previous Chairman’s Report (for the 14 May 2020 Council meeting) I have attended and participated in a number of meetings and engagements as Chairman on behalf of the Bay of Plenty Regional Council.
This report sets out those meetings and engagements, outside of Council, Committee and Sub-Committee meetings, and highlights key matters of interest that I wish to bring to Councillors’ attention.
Recommendations
That the Regional Council:
1 Receives the report, Chairman's Report.
1 Purpose
The purpose of this report is to update Council on meetings and engagements, outside of Council, Committee and Sub-Committee meetings, I have attended and participated in as Chairman. Also to highlight key matters that will be of interest to Councillors.
The following section summarises these meetings and engagements. I will provide further detail at the meeting in response to any questions you may have.
2 Meetings and Engagements
Date Meeting/Engagement Comment
4 May Councillors SmartGrowth Attended. discussion with Ken Tremaine – Video conference
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Date Meeting/Engagement Comment
5 May Weekly catch up for Regional Discussed Regional Sector issues. Sector/Chairs and Mayors – Video Conference
8 May Regional Transport Committee Discussed the alignment of regional meeting with Minister Phil Twyford and national priorities. – Video Conference
Te Whānau a Apanui Iwi Response A discussion around what COVID Unit Update- Video Conference response Level 2 looks like for the Iwi Response Unit.
13 May Weekly catch up for Regional Regular meeting to discuss Regional Sector/Chairs and Mayors – Video Sector issues. Conference
14 May Meeting with Mayor of Western Bay Attended. of Plenty District Council and SmartGrowth Chairperson – Tauranga
15 May LGNZ National Council Meeting – Attended. Video Conference
18 May Western Bay of Plenty Transport An updated on the Western Bay of System Plan Meeting – Video Plenty Transport System Plan Conference including the programme, deliverables, progress to date, and next steps. Key members of the Project team were also introduced.
19 May Newshub Radio Interview – Brief interview about the Bay of Teleconference Plenty Infometrics Report.
SmartGrowth Mayors, Chairs and Discussed the upcoming Chief Executives Meeting – SmartGrowth Leadership Group Tauranga meeting agenda and workshop.
20 May SmartGrowth Leadership Group Attended. Meeting – Video Conference
SmartGrowth Leadership Group Attended. Closed Workshop – Video Conference
Weekly catch up for Regional Regular meeting to discuss Regional Sector/Chairs and Mayors – Video Sector issues. Conference
22 May UNISA Mayors and Chairs Meeting Received and discussed the update – Video Conference from the Ministry of Transport on the Upper North Island Supply Chain Strategy. Also discussed our joint letter to Minister David Parker on the UNISA Well-being and Spatial Planning.
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Date Meeting/Engagement Comment
27 May Pre-meeting before the upcoming Attended Central and Local Government Forum – Video Conference
Weekly catch up for Regional Regular meeting to discuss Regional Sector/Chairs and Mayors – Video Sector issues. Conference
29 May Port of Tauranga Board Meeting – Attended. Mount Maunganui
3 June Meeting with Libby Fletcher, Chair Discussed the Tarawera Sewerage of the Lake Tarawera Ratepayers Scheme. Association, and Glenn Snelgrove – Teleconference
Weekly catch up for Regional Discussed Regional Sector issues. Sector/Chairs and Mayors – Video Conference
4 June Regional Sector Water Sub-Group Considered the Essential Freshwater Meeting – Video Conference policy decisions and implementation.
Meeting with Priority One and Spoke about a potential Tauranga Fullers 360 – Tauranga Ferry Service.
5 June Meeting with Mayor of Rotorua Discussed projects that we have Lakes Council and Councillors – sought funding for as part of the Video Conference various Crown funding opportunities related to the Covid-19 recovery.
Extraordinary LGNZ National Attended. Council Meeting – Video Conference
8 June Meeting with Mayors of Tauranga Considered the upcoming City Council and Western Bay of SmartGrowth Partnership Ministerial Plenty District Council, and meeting. SmartGrowth Chairperson – Tauranga
9 June SmartGrowth Partnership Meeting Updates provided including on Urban with Minister Phil Twyford – Video planning and pathways to rapid Conference implementation. Timeframes for spatial planning and partnership matters going to Cabinet were also discussed.
Tauranga City Council and Western Brief discussion focussed on COVID- Bay of Plenty District Council 19 response and recovery, and local Mayors, Chairs and Chief topical matters. Executives Meeting with Prime Minister Jacinda Ardern – Tauranga
10 June Kia Kaha Whakatane Governance Attended with Councillors Iti and Group Meeting – Video Conference Clark.
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Date Meeting/Engagement Comment
This was the first meeting of the Governance Group with Whakatāne District Council. The Group’s proposed purpose is to ensure appropriate joint governance is in place to lead a successful programme of works that provides short term employment opportunities for people affected by Covid-19, while meeting broader social objectives.
Regional Sector Virtual Meeting – A brief meeting where the following Video Conference matters were discussed: Update of Freshwater Policy and Implementation; Budget 2020 Environmental Recovery Update; and Briefing ahead of engagement with Cabinet Ministers.
12 June Bay of Plenty Mayoral Forum A video recording of the meeting is Meeting – Video Conference available on the Bay of Plenty Regional Council website. The Forum discussed COVID-19 Recovery, Regional Green Projects, and an update on the Caring for our Communities initiative. There were presentations on Tourism BOP’s “No Place Like Home” initiative and Tauranga’s “Buy Local” campaign. A Region Wide Financial Strategy was also discussed.
Central and Local Government The first out of three follow-up Follow-up Session – Video sessions after the initial meeting on Conference 28 May. This meeting focussed on the Regional Sector.
Doug Leeder Chairman for Council Chairman
15 June 2020 Click here to enter text.
4 Page 34 of 166 Report To: Regional Council
Meeting Date: 25 June 2020
Report From: Mat Taylor, General Manager, Corporate
Adoption of the Annual Plan 2020/21
Executive Summary
This report seeks Council’s adoption of the Annual Plan 2020/21 (AP 2020/21) under section 95 (1) of the Local Government Act (2002). Council has completed the process of developing the AP 2020/21 and the statutory deadline to adopt the AP 2020/21 is on or before 30 June 2020 to enable the AP 2020/21 to become operational on 1 July 2020.
This AP 2020/21 has been developed in an environment heavily shaped by COVID-19. There has been, and will continue to be, unprecedented economic turbulence with impacts across our entire community. In responding to this environment, we aim to be agile and pragmatic as we help facilitate the recovery of the economic, social, cultural, and environmental well-beings of our community, with a particular focus on job creation where it aligns with our core roles. 2020/21 is thus likely to be an extraordinary year.
Council gave final direction for the preparation of AP 2020/21 at its meeting on 2 June 2020. This direction incorporated updated information based on public feedback and updated staff advice, including the consequential impacts of COVID-19. Council considered all practical options available at the deliberations meeting for each decision. The proposed AP 2020/21 budget has been revised to incorporate Council direction from the deliberations meeting on 2 June 2020 and better financial information.
A summary of the key budget figures for the AP 2020/21 is included in this report. The updated draft budget includes a total real rates revenue decrease of 2.8%. This is made up of a 0% general rates increase and a targeted rates decrease of 5.5%. The total real rates revenue decrease is 5.6% lower than the 2.8% increase included in Year 3 of the Long Term Plan 2018-2028 (LTP 2018-2028).
The proposed AP 2020/21 budget includes a forecast deficit of $12.7 million and this is $6.5 million higher deficit than included in Year 3 of the LTP 2018-2028. The unbalanced budget is primarily due to Council’s previous commitment to contribute to third party infrastructure projects through funding previously set aside, and the use of rates reserves to the reduce rates impacts in 2020/21. Council is required to approve the unbalanced budget is financially prudent. The proposed AP 2020/21 for adoption is included as Appendix 1 to this report.
This report also includes arrangements for Council’s external treasury programme which have been recommended for Council approval by the Risk and Assurance Committee. This includes forecast borrowings of $231 million and forecast investments of $208 million as at 30 June 2021. Council approval is sought for $40 million of new borrowings from the Local
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Government Funding Agency (LGFA) to pre-fund capital expenditure through to 30 June 2023 and this reduces funding risk for capital projects. Council approval is also sought for the proposed: Statement of Intent (SOI) 2020/21 for the Toi Moana Trust (Appendix 2). Statement of Investment Policy and Objectives (SIPO) 2020/21 for the Toi Moana Fund (Appendix 3). The amended Treasury Policy to reflect borrowing limit changes from the LGFA.
Recommendations
That the Regional Council:
1 Receives the report, Adoption of the Annual Plan 2020/21;
2 Notes that Council did not consult on the Annual Plan 2020/21 as the changes were not considered to be significant or material departures from LTP 2018-2028.
3 Notes the list of budget changes from Year 3 of LTP 2018-2028 included in the proposed Annual Plan 2020/21 for adoption.
4 Approves $40 million of new borrowings from the Local Government Funding Agency to fund budgeted capital expenditure comprised of an additional $10 million in 2020/21, and $30 million for 2021/22 and 2022/23 helping to reduce funding risk.
5 Approves the Statement of Intent 2020/21 for the Toi Moana Trust (Appendix 2).
6 Approves the Statement of Investment Policy and Objectives for the Toi Moana Fund (Appendix 3).
7 Approves the change to the Treasury Policy that increases the Net Debt to Total Revenue ratio to 300% for 2020/21 and 2021/22, then decreasing by 5% each year thereafter to 280% in 2025/26 to reflect borrowing limit changes from the Local Government Funding Agency.
8 Resolves that having had regard to the matters in section 100 (2) of the Local Government Act (2002) it is financially prudent for the Annual Plan 2020/21 to have an unbalanced budget (operating revenue is at a lower level than operating expenditure).
9 Adopts Annual Plan 2020/21 (Appendix 1) to come into effect 1 July 2020.
10 Delegates to the Chief Executive authority to make minor editorial changes to the Annual Plan 2020/21 and supporting documentation before publishing for reasons of consistency or minor correction.
2 Page 36 of 166 Adoption of the Annual Plan 2020/21
1 Development of the Annual Plan 2020/21
The Annual Plan 2020/21 (AP 2020/21) presents the budget for the third year of the Long Term Plan 2018-2028 (LTP 2018-2028) updated to include any changes from what Council set out in its plan.
Following Council workshops on 3 December 2019 and 16 March 2020, Council provided direction to staff on the development of the draft Annual Plan 2020/21 at the Council meetings on 12 December 2019 and 24 March 2020.
At its meeting on the 24 March 2020, Council decided that pursuant to section 95 2A of the Local Government Act (2002), the variances from Year 3 of the LTP 2018-2028 were not significant or material and a full special consultative procedure was not required. At the same meeting, to lessen the financial impact of COVID-19 on our community, Council directed staff to work towards a zero percent increase to general rates and no changes to Councils Resource Management Act and Building Act Fees and Charges for 2020/21.
In addition, Council decided to release an Information Document, which was published on 15 April 2020 and which set out the main changes that were planned compared to what was set out in the LTP 2018-2028. Eleven items of feedback were received from the community, including four funding requests, in response to the feedback document. Three people/organisations asked to speak to Council in relation to their feedback and were heard by Councillors directly before Council deliberations on the AP 2020/21 on 2 June 2020. Council’s AP 2020/21 deliberations included updated staff advice and information relating to the consequential impacts of COVID-19. Council gave final direction to staff on the preparation of the AP 2020/21 and considered all practical options available at the deliberations meeting for each decision.
Council has now completed the process of developing the AP 2020/21, and the statutory deadline to adopt the AP 2020/21 is on or before 30 June 2020 to enable the plan to become operational on 1 July 2020. The proposed AP 2020/21 for adoption is included as Appendix 1 to this report.
2 Proposed Annual Plan 2020/21 Budget
The proposed AP 2020/21 budget has been revised from the Information Document to incorporate Council decisions from the deliberations meeting on 2 June 2020. A full list of the resolutions from the deliberations meeting is enclosed with this agenda.
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A summary of the proposed AP 2020/21 budget and comparisons with Year 3 of the LTP 2018-2028 is set out in the following tables and graphs.
Table 1 Proposed Annual Plan 2020/21 Budget
LTP Year 3 Annual Plan Annual Plan Variance 2020/21 Information 2020/21 Operating Budget AP 2020/21 to Document LTP YR 3 2020/21 $000 $000 $000 $000 Operating Revenue 138,523 140,289 134,020 (4,503) Operating Expenditure 144,753 155,028 146,757 (2,004) Operating Deficit 6,230 14,739 12,737 (6,507)
LTP Year 3 Annual Plan Annual Plan Variance 2020/21 Information 2020/21 Capital Budget AP 2020/21 to Document LTP YR 3 2020/21 $000 $000 $000 $000 Capital Expenditure 30,709 39,926 51,505 (20,796) Capital Revenue 7,101 7,752 7,144 43 Borrowings 23,608 32,174 44,361 (20,753)
Table 2 Proposed Annual Plan 2020/21 Rates
LTP Year 3 Annual Plan Annual Plan Variance 2020/21 Information 2020/21 Rates Forecast AP 2020/21 to Document LTP YR 3 2020/21 General Rates increase / (decrease) 2.8% 0.0% 0.0% (2.8%) Targeted Rates increase / (decrease) 2.8% 2.3% (5.5%) (8.3%)
Total Rates increase / (decrease) 2.8% 1.2% (2.8%) (5.6%)
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Figure 1 Annual Plan 2020/21 Rates Forecast by Territorial Authority Annual Average Medium Properties 1,000 m2. Figures include GST.
2.1 Use of reserves
Council has the ability to apply reserve balances to reduce rates (general and targeted) where the reserve balance is forecast to be available. The Equalisation Reserve holds the balance of previous and forecast general fund surpluses and can be used to fund one-off operating expenditure and to ‘spread’ the general rates impact, and individual targeted rates reserves do the same for targeted rates.
The reserve balances can be used instead of increases in general or targeted rates in line with the funding ratios on the Revenue and Financing Policy. Reserve use, as directed by Council, has been included in the proposed AP 2020/21 budget as follows:
Equalisation Reserve $4.7 million to achieve a 0% general rates increase.
Regional Fund $3 million for Whakatāne District Council’s Awatarariki Fanhead Managed Retreat.
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Infrastructure Fund $3.8 million for regional infrastructure projects committed to through previous Long Term Plans.
Rotorua Te Arawa Lakes Ministry for the Environment (MfE) Deed Funding Reserve $3 million for MfE’s 50% contribution to 2020/21 land use change incentives programme.
Targeted Rates Reserves $3 million to reduce the targeted rates impacts in 2020/21 as follows $1.4 million Passenger Transport, $0.85 million Emergency Management, and $0.7 million Rivers and Drainage.
This use of reserves is considered to be a prudent funding mechanism because reserve funds are available, all financial prudence benchmarks are maintained with the proposed use and it is beneficial to minimise rates impacts due to the financial impacts of COVID-19.
2.2 Unbalanced budget
The proposed AP 2020/21 has an unbalanced budget (operating revenue is expected to be less than operating expenditure). This is consistent with financial decisions taken through the development of the LTP 2018-2028 which resulted in an unbalanced budget in years one, two, three and four.
The updated draft budget proposes an operating deficit of $12.7 million. Council have considered the requirements under LGA section 100 (2). The unbalanced budget is primarily due to Council’s previous commitment to contribute to third party infrastructure projects through funding previously set aside (as noted above), and the use of rates reserves to reduce rates impacts.
This is considered to be a prudent funding mechanism because reserve funds are available, all financial prudence benchmarks are maintained with the proposed use, and it is beneficial to minimise rates impacts due to the financial impacts of COVID-19. There is no borrowing being applied to operating costs.
Council is required to formally resolve to set an unbalanced budget pursuant to section 100 (2) of the Local Government Act (2002) and that this is financially prudent.
3 Treasury
3.1 Introduction
The economic outlook has changed dramatically over the past few months due to COVID-19. The outlook for interest rates has declined to record lows, with the OCR being reduced to 0.25%. Borrowing rates have dropped by around 1%, and this has flowed through to lower internal interest rates for Council’s internal loans in the updated draft budget. Investments rates having only dropped between 0.25% and 0.5%, which is a net positive result for Council.
The objective of the Treasury Policy is to optimise returns while limiting risks. A key aspect of this is the establishment of the Toi Moana Trust. This was established to gain higher returns from investments than would be able to be achieved through Council directly investing. At the AP 2020/21 deliberations meeting, staff recommended the performance targets that are proposed to be included for Council’s Toi Moana Trust fund.
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The Local Government Funding Agency is also trying to assist Councils by making changes to its foundation policies and increase the debt limits. Council has pre-funded capital expenditure to provide certainty of funding. It is planned to continue this in 2020/21, with prefunding the capital works programme for 2021/22 and 2022/23.
Standard & Poors provided a report on Council’s annual rating review on 2 June 2020 that re-affirmed the existing rating of AA.
3.2 Treasury strategy 2020/21
The updated Annual Plan 2020/21 includes the arrangements for Council’s external treasury programme as follows:
$40 million of new borrowings for capital expenditure from the Local Government Funding Agency comprised of an additional $10 million in 2020/21, and $30 million to pre-fund capital expenditure in 2021/22 and 2022/23. This approach reduces Council’s funding risk.
Forecast borrowings of $231 million as at 30 June 2021, which is $10 million higher than set out in the Information Document due to proposed Rivers and Drainage Rangitāiki Floodway Stage 6 and Kaituna Mole capital works. The total includes Council’s existing on-lending facility to Quayside Holdings Limited (Quayside) of $50 million.
Forecast investments of $208 million as at 30 June 2021, which includes Council’s Toi Moana Trust fund at a face value of $45 million, and Quayside’s $50 million from the on-lending facility.
The Risk and Assurance Committee reviewed the Council’s proposed treasury management activities at their meeting on 15 June and recommended these arrangements for Council approval.
3.3 Investments – Toi Moana Trust
3.3.1 Toi Moana Trust – Statement of Intent 2020/21
Toi Moana Trust has been established as an investment Council Controlled Organisation (CCO). Council must set a Statement of Intent (SOI) incorporating the nature, scope, activities, and performance targets of Toi Moana Trust. This will be a stand-alone document from Quayside’s SOI.
The Toi Moana Fund was established in the LTP 2018-2028 and at that time the policy objectives and performance targets were set. These objectives and targets are now being set within the SOI and Statement of Investment Policy and Objectives (SIPO) framework and will be monitored and reviewed each year by Council.
The Risk and Assurance Committee reviewed the proposed Statement of Intent 2020/21 for the Toi Moana Trust at their meeting on 15 June 2020 and recommended this for Council approval. See Appendix 2.
3.3.2 Toi Moana Fund – Statement of Investment Policy and Objectives update
The purpose of a Statement of Investment Policy and Objectives (SIPO) is to describe Council’s investment policy and investment objectives for its Toi Moana Trust fund. It provides the policy framework for Council to effectively supervise, monitor and
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evaluate the management of the fund. Council must maintain a SIPO for the Toi Moana Trust.
The Risk and Assurance Committee reviewed the proposed SIPO for the Toi Moana Fund at their meeting on 15 June 2020 and recommended this for Council approval. See Appendix 3.
3.4 Treasury Policy changes as a result of the Local Government Funding Agency changes
Currently, local authority borrowers with a long-term credit rating of 'A' equivalent or higher are required to maintain net debt / total revenue below 250%, unless a higher ratio is approved by shareholders. In respect of this financial covenant, the LGFA has proposed changing this to:
for the current financial year ending 30 June 2020, 250% to continue to apply; for the financial years ending 30 June 2021 and 2022, 300% will apply; and for each of the next four years financial years, a decrease of 5% until 280% will apply for and from the financial year ending 30 June 2026.
For Council to apply the proposed LGFA changes stated above the following changes are required to Council’s Treasury Policy:
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The initial increase from 250% to 300% in the foundation policy covenant would be approximately equal to a $70 million increase to Council’s implied debt limit.
Changing the debt limit does not immediately affect the current level of risk faced by Council. It does open Council to potentially higher future risk, given a higher borrowing capacity from the LGFA. Under the current control environment the level of risk only increases as actual net borrowing increases, which would only increase following Council approval.
This is also the case for Council’s Credit Rating. The debt limit is not a standby facility and is therefore not used in the assessment of the Credit Rating, only the level of actual borrowing in place is used to assess the Rating. 4 Consultation
Through the development of the AP 2020/21, Council has followed its Significance and Engagement Policy and the Annual Plan requirements set out under the Local Government Act 2002. Staff assessed the significance and materiality of all changes from Year 3 of the LTP 2018-2028 for both individual items and for the total aggregate impact.
The majority of changes related to timing of projects, operational improvements and use of accumulated reserves to reduce the rates requirement, particularly taking into account the impacts of COVID-19. Of the changes, none rated as highly significant and there was no requirement to undertake a full special consultative procedure and this was confirmed by Council at the meeting on 24 March 2020.
One proposal, the Rangitāiki Floodway Stage 6 Project was rated as being of medium significance. The public consultation that has been undertaken on the Rangitāiki Floodway Stage 6 Project meets the consultation requirements to make this decision. An information document was released which the public were able to provide feedback on the Annual Plan 2020/21.
It is considered that the decision-making requirements of Part 6 of the Local Government Act 2002 have been met in relation to all of the decisions required in preparation of Annual Plan 2020/21.
5 Post adoption
Following adoption of the AP 2020/21, staff will make any required minor editorial corrections. The AP 2020/21 will be made publically available, including on the Bay of Plenty Regional Council website in early July 2020.
Printed copies will be available from mid-July and will be distributed to key stakeholders and organisations.
6 Implications for Māori
Our region has New Zealand’s largest number of iwi entities and the second largest Māori population. To date, 19 Treaty of Waitangi settlements have been negotiated, 3 of which have established co-governance entities that have a statutory responsibility for freshwater bodies.
Over the past 10 years settlements, and Māori economic development have contributed to the region’s prosperity. Changes to national policy, the Resource
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Management Act 1991 and the distribution of government economic recovery funds as a result of COVID 19 have further emphasised the importance of supporting partnerships with Māori across a range of activities.
As partners to the Treaty of Waitangi, Māori have particular constitutional rights and interests which are expressed not only in law, but also in the way they engage at a national and regional levels through their culture, language and mātauranga Māori.
Decisions made by Council through this AP 2020/21 affirm Council’s contribution, through its statutory obligations, and its objective to build sustainable relationships with Māori, to enable Māori initiatives to flourish, this is expanded on through the ‘Iwi-Māori Partnerships’ section of the AP 2020/21, attached to this agenda.
Māori organisations will continue to seek the support of Council. It is important then, to ensure that Māori participation in Council decision-making processes will be central to Council’s work in the future. 7 Financial implications
A summary of the Council’s proposed AP 2020/21 budget and the financial implications are included in this report and appendices.
8 Council’s Accountability Framework
8.1 Community Outcomes
This paper directly contributes to all Community Outcomes in the Council’s LTP 2018- 2028.
8.2 Long Term Plan Alignment
This work is planned under the Finance and Corporate Planning Activity in the LTP 2018-2028.
Debbie Hyland Finance & Transport Operations Manager for General Manager, Corporate
17 June 2020 Click here to enter text.
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APPENDIX 1
BOPRC Annual Plan 2020-21 - Draft for Adoption
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Page 46 of 166 Annual Plan 2020/21 Te Mahere ā-Tau
DRAFT FOR ADOPTION
This document should be read in conjunction with the Long Term Plan 2018-2028 Page 47 of 166 Thriving together – mō te taiao, mō ngā tāngata
The way we work
We provide great We honour our We deliver value to We continually We look to We use robust customer service obligations to Māori our ratepayers seek opportunities to partnerships for information, science and our customers innovate and improve best outcomes and technology
Safe and A healthy Freshwater A vibrant resilient environment for life region communities Strategic Our values challenges FOR Trust Different priorities and issues across the region We will maintain Our water and Our planning and We work with our Integrity and enhance our air, land, land management infrastructure supports partners and communities freshwater, geothermal, practices maintain and resilience to natural to achieve integrated The implications of coastal resources and improve the quality and hazards so that our planning and good Courage changing climate biodiversity for all those quantity of the region’s communities’ safety decision making. who live, work and play DRAFTfreshwater resources. is maintained and We support economic within our region. We improved. development, Manaakitanga COMMUNITY OUTCOMES COMMUNITY understanding the Bay Limitations of our support others to natural resources do the same. of Plenty region and how we can best add value. Kotahitanga Sustaining development 1. We develop and implement 1. Good decision making 1. We provide systems and 1. We lead regional transport across the region ADOPTION regional plans and policy to is supported through information to increase strategy and system planning, Whanaungatanga protect our natural environment. improving knowledge of understanding of natural working with others to deliver our water resources. hazard risks and climate a safe and reliable public An increasingly complex We manage our natural 2. change impacts. transport system. operating environment resources effectively through 2. We listen to our communities regulation, education and action. and consider their values and 2. We support community 2. We contribute to delivering priorities in our regional plans. safety through flood protection integrated planning and 3. We work cohesively with Ensuring Māori and navigation safety. growth management strategies volunteers and others, to We collaborate with others to participation in Council 3. especially for sustainable sustainably manage and maintain and improve our water We work with our partners decision making 3. urban management. improve our natural resources. resource for future generations. to develop plans and policies, and we lead and enable our 3. We work with and 4. Our environmental 4. We deliver solutions to local OBJECTIVES communities to respond and connect the right people to Balancing the monitoring is transparently problems to improve water recover from an emergency. create a prosperous region expectations of communicated to our quality and manage quantity. and economy. both national and communities. 4. We work with communities 5. We recognise and provide local partners and others to consider long 4. We invest appropriately for Te Mana o Te Wai (intrinsic term views of natural hazard in infrastructure to support value of water). risks through our regional sustainable development. As at 1 July 2018 Page 48plans of and 166 policies. Contents Rārangi take
Message from the Chair and Chief Executive 5 Guide to this document 6
FORCommunity Outcomes – Ngā putanga a-hapori 7 A healthy environment – He taiao ora 8
Freshwater for life – He wai māori, he wai oranga 9 DRAFT Safe and resilient communities – Kia haumaru, kia pakari te hapori 10 A vibrant region – Toitū te rohe 11
ADOPTIONSupporting the Region’s Recovery from COVID-19 12 Climate change 14 Iwi-Māori Partnerships 16 Financial highlights 2020/21 18 What’s happening in your area for 2020/21? 21 Groups of activities 22 Policies and financial information 24 Your representatives 47
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3 Mai i Ngā Kurī a Whārei ki Tikirau Stretching from Waihī Beach to East Cape
Mai i Maketū ki uta mai ki Taupō-nui-a-Tia From Maketū to just inland of Lake Taupō
This is the region of the Ko te rohe kaunihera tēnei o Toi Moana Bay of Plenty Regional Council
Let the land prosper, let the oceans and Kia toi te whenua, kia toi te moana, kia toi lakes prosper, let the environment prosper te taiao, kia toi te iwi so that we, the people, prosper.
Tihei Mauriora! ‘Tis the breath of life
Ngā mihi kia tatou i ngā taumahatanga o te wā. FORWarm and affectionate greetings to you during this challenging time Ko te tumanako, e noho haumaru nei kōutou ngā It is with good intent that your families and whānau, me ngā hapori of te rohe nei. communities are safe across the region. Ma te manaakitanga tatou e kokiri whakamua. It is through caring for one another DRAFT that we will get through this. I whakarangona atu e Toi Moana ki ngā moemoeā a Council has listened to the aspirations of its ngā hapori. Ka mōhiotia ko Toi Moana he rohe whai communities confirming that we are a region seeking painga whai oranga hoki.ADOPTIONwellbeing and vitality together. Ko te tino pūtake ko te whakapakari ai I ngā momo The focus is to strengthen our connections to tūhono i waenganui i a tātou nā ngā wawata, each other and our environment guided by your moemoeā hoki. aspirations and ideas. Ko tō kaunihera ā rohe he waka eke noa. Your regional council is a waka which we are all Nā tō rourou, nā tōku rourou ka ora ia te iwi. in together with no exceptions. Together we shall realise our collective aspirations. Nā te ārahitanga o ngā Hapori o Toi Moana e kore The ongoing guidance from our communities mātou a Toi Moana e kotiti haere ki te whakapakari ai ensures we never deviate from our commitment to i tō tātou taiao Hapori anō hoki. you, our communities and environment.
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4 Message from the Chair and Chief Executive This Annual Plan 2020/21 updates year three of our Long Term Plan 2018-2028. It focuses on the changes we’re making while continuing the work we said we would do as part of the Long Term Plan.
The environment within which this Annual Plan 2020/21 was developed, and will With COVID-19 having a significant impact on our region, in March 2020 Council be operative, is unprecedented due to the impact of COVID-19. The importance of decided not to consult on the Annual Plan 2020/21 and instead published an thriving together mō te taiao, mō ngā tāngata has been evident in New Zealand’s Information Document showing the planned changes to our work for 2020/21 while response to COVID-19. While New Zealand has been spared widespread illness and proposing a zero general rates increase, and no change to our fees and charges death, we have not been spared significant economic harm. Most forecasts are for for 2020/21. a significant recession, potentially deepening into a depression, with substantial Our total operating expenditure budget for 2020/21 is now $146.8 million, loss of employment across the Bay of Plenty. Our response, as detailed in this plan, compared to the $144.8 million we had budgeted in year three of our Long Term has been shaped by a strong desire to recover from COVID-19 as quickly, and as Plan and our total capital expenditure budget is now $51.5 million, compared to energetically, as we can. $30.7 million. As proposed through our Information Document there is a zero As a Council, we have an opportunity to lead theDRAFT way, regionally and nationally, by generalFOR rates increase, and no change to our fees and charges. We are able to doing things in new ways that contribute strongly to the four wellbeings: social, deliver this by generating additional efficiency savings and utilising our financial cultural, environmental, and especially in the current situation, economic. There is reserves. In addition, there are decreases to targeted rates largely as a result of a an opportunity for transformational change. This regional recovery process, done decrease in borrowing costs. These targeted rate decreases result in an average well, will allow the Bay of Plenty region to not only recover from COVID-19, but decrease in rates of 2.8%, which is lower than the 2.8% increase that was forecast also ensure its communities thrive. Together with our equallyADOPTION motivated partners through our Long Term Plan. across central and local Government, Māori and other stakeholders, we have the Our region, like many others across the world is enduring a period of great opportunity to tackle some of the critical challenges facing the region. We have a uncertainty and anxiety. As your Regional Council, we are focused on ensuring we crucial opportunity to transition towards a low-carbon economy and reduce the can thrive together, ensuring a healthy environment, freshwater for life, a vibrant impact of climate change much more quickly than we had anticipated. We have an region – and most importantly right now – safe and resilient communities. opportunity to create new jobs in these low-carbon industries, softening the blow of COVID-19. At the same time, we will retain a paramount focus on organisational agility and efficiency. Sound fiscal planning, and consequent regional affordability, will be core to our approach. In this context, the Annual Plan is a key first step towards Doug Leeder Fiona McTavish supporting regional recovery, and ensuring we have the right foundation as we Chairman Chief Executive build towards our next Long Term Plan 2021-31. Page 51 of 166
5 Guide to this document
This Annual Plan 2020/21 updates year three of our Long Term Plan 2018-2028. It focuses on the changes we’re making while continuing the work we committed to as part of the Long Term Plan.
Our work in 2020/21 will continue to focus on achieving what we set out to do in the Long Term Plan towards our four Community Outcomes: A Healthy Environment, Freshwater for Life, $231 Safe and Resilient Communities, and a Vibrant Operating $147 Borrowings million proposed Region. Starting on page 8 you can read about spending million for some of the new initiatives that are included in net borrowing at 2020/21 year three of the Long Term Plan to deliver on the completion of these. We have also included information on 2020/21 work we are undertaking to support the region’s DRAFT FOR recovery from COVID-19, our response to Climate Change, and how we will support thriving Māori Partnerships. The financial strategy summary to the right ADOPTIONGeneral 0% Capital reflects our proposed rates, borrowing and proposed change capital spending for 2020/21. The proposed rates Rates spending $52 to general rates are lower than our original forecast average rates million for increases in the Long Term Plan. for 2020/21 2020/21 We strongly encourage everyone to read the Long Term Plan 2018-2028 to understand the full spectrum of work Bay of Plenty Regional Council does for our region.
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6 Community Outcomes Ngā putanga a-hapori
FOR DRAFT ADOPTION
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7 A healthy environment He taiao ora
We will maintain and enhance our air, land, freshwater, geothermal, coastal resources and biodiversity for all those who live, work and play within our region. We support others to do the same.
A healthy environment is at the heart of what we do. We sustainably manage our natural resources so our communities can thrive. We want to continue to grow and develop as a region, support local business and ensure there are job opportunities for all our communities. We need to make sure we are not putting more pressure on the environment than it can cope with. We also need to consider what climate change means for us and understand how we need to respond to the changes this will bring, such as FORdifferent weather patterns and rising sea levels. We work with the community to protect our water, soils and our wildlife. We manage, or get rid of, pest plants and animals. We set rules around what can and can’t be done in our environment and ensure the rules are followed through our consents and monitoring processes. DRAFTOur areas of focus for 2020/21 include delivering the Regional Pest Management Plan to manage plant and animal pests, including working to prevent further catfish incursions; containing the spread of ADOPTIONwallabies; and monitoring air quality in the Mount Maunganui industrial area. CHANGES TO OUR WORK THROUGH THE ANNUAL PLAN 2020/21 • We are increasing efforts to manage plant and animal pests, through including an additional $650,000 to support the implementation of the proposed Regional Pest Management Plan which is due to be adopted later this year • $41,000 toward a targeted education campaign to inform and reinforce awareness of the Motiti Protection Area to all relevant stakeholders • $20,000 towards funding of the Treasuring our Place Environmental Programme initiative provided by the Western Bay Museum
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8 Freshwater for life He wai māori, he wai oranga
Our water and land management practices maintain and improve the quality and quantity of the region’s freshwater resources.
Freshwater is vital for the health of people and communities, and that makes it important to us. We’re responsible for two kinds of freshwater: groundwater and surface water. Surface water is all the water above ground – rivers, lakes and streams, drains, ponds, springs and wetlands, while groundwater comes from rainfall and rivers and accumulates in underground aquifers. Put simply, we manage the freshwater that’s in and on the ground so there’s enough for people and wildlife to thrive now and in the future. We invest millions of dollarsFOR each year to maintain and improve water quality and quantity in the Bay of Plenty and we work with the community to look after our rivers, estuaries and coastal environments. We monitor water quality and quantity and ensure people follow the rules set through the consents process. Our work in this area is guided by national legislation, regulations and standards for water that prescribe DRAFTpublic processes for setting requirements and rules. This area is becoming increasingly complex and we’re working hard to translate the policy into action on the ground. Our areas of focus for 2020/21 include ensuring the organisation can progressively deliver the Government’s Action for Healthy Waterways. We are also implementing our Focus Catchments ADOPTIONprogramme across 11 other catchments in the region with known water quality issues, such as elevated contaminant levels or declining water quality trends. Further information can be found at: www.boprc.govt.nz/focuscatchments CHANGES TO OUR WORK The Te Pourepo o Kaituna wetland creation project, THROUGH THE ANNUAL which is aiming to restore 70 hectares of pasture PLAN 2020/21 into wetland paradise for wildlife to thrive in and people to enjoy, will also be progressed during the • $180,000 to support the year – see www.boprc.govt.nz/kaitunawetland implementation of the Government’s Action for Healthy Waterways package announced in late May 2020
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9 Safe and resilient communities Kia haumaru, kia pakari te hapori
Our planning and infrastructure supports resilience to natural hazards so that our communities’ safety is maintained and improved.
Our region is subject to a number of natural events, including volcanic activity, earthquakes and extreme rainfall. These events can endanger our communities. We work to keep people safe by providing flood protection, such as stop banks and pump stations, and ensuring we are prepared for emergencies through our Civil Defence and Emergency Management services. Raising awareness and preparing for issues such as climate change are also important aspects of building strong communities that can copeFOR with change. We are responsible for controlling the use of land to avoid or mitigate the effects of natural hazards, and we work with other local councils and Emergency Management Bay of Plenty, to identify natural hazards and reduce risk. Our areas of focus for 2020/21 include: renewal/maintenance of our rivers and drainage schemes where required and continuing with the Flood Repair Project to carry out major repairs to our flood protection DRAFTstructures damaged during the April 2017 floods in the eastern Bay. ADOPTIONWe will also continue to provide a 24/7 navigation safety and maritime oil spill response across the region. RANGITĀIKI FLOODWAY The Rangitāiki Floodway Project is a multi-stage project designed to take pressure off the floodprone Rangitāiki River by diverting some of its flow. CHANGES TO OUR WORK THROUGH THE ANNUAL PLAN 2020/21 Increasing the capacity of the floodway • $8.355 million toward funding for Stage 6 of the Rangitāiki Floodway Project reduces flood levels in the Rangitāiki River from upstream of Edgecumbe to the • $20,000 towards community engagement and collaboration regarding Water Safety river mouth. within the Bay of Plenty
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10 A vibrant region CHANGES TO OUR WORK THROUGH THE Toitū te rohe ANNUAL PLAN 2020/21 • $250,000 for delivery of the Regional Recovery Project We work with our partners and communities to achieve integrated planning and good decision making. We support economic • $250,000 to support the delivery of Western Bay urban growth and transport planning development, understanding the Bay of Plenty region and how we can best add value. • $50,000 to complete feasibility work on a sustainable procurement policy and framework People and the environment are at the heart of our region. We support the growth of jobs in • $250,000 delivered through Toi Kai Rawa - a charitable the Bay of Plenty and the development of new industries. trust established from He Ohooho, the Regional Maori Economic Strategy that operates as a Māori economic We make significant contributions to the region’s economic growth through environmental development organisation and infrastructure management. • $700,000 to support Thriving Māori Partnerships Through our contestable Regional Infrastructure Fund, which was established through the through building capacity and capability, and to reset Long Term Plan 2012-2022, we have supported projects initiated by our partners, such as the relationships with iwi and to build partnerships Ōpōtiki Harbour Transformation Project and the Tauranga Marine Precinct development. • Additional initiatives to transport services in the Bay We facilitate Bay of Connections, the economic development framework for the wider Bay of of Plenty: Plenty. Its goal is to grow our investment and job opportunities in partnership with economic development agencies across the region. – $120,000 for a new bus service in Tauranga to DRAFT FORimprove coverage of regular bus services in the Lakes We also keep the community connected through the regional bus network of Bayhopper and and Pyes Pā area to connect to the Tauranga Crossing Cityride buses. – Up to $69,000 to develop and trial an on demand In light of the recent effects the region has seen from the COVID-19 pandemic, significant door to door bus service within Kawerau that could work has also been undertaken to assist with the region’s response and subsequent recovery. ADOPTIONcollect passengers from their homes for access to Our focus areas for 2020/21 include: a Regional Recovery Project encompassing a Bay of shopping and essential services. This service may be Connections-led Regional Recovery Strategy involving action from a range of organisations partially funded by partners e.g. Waka Kotahi (NZTA) across the Bay of Plenty, and a separate Regional Council-specific Recovery Work – Community Health Shuttles in Ōpōtiki and in Programme where we directly fund and deliver projects that deliver jobs. See further detail Kaweraufor patients that require transport to and on following pages. from key medical and specialty services We have also started feasibility work on a sustainable approach to procurement that will help – Continuation of the SuperGold card scheme where achieve sustainability outcomes within the region. We are also continuing implementation holders receive free off-peak public bus travel on the of the Western Bay of Plenty Public Transport Blueprint to provide an improved bus service, regional Bayhopper and Cityride including the trial of fare free bus travel for Tauranga school students to help reduce traffic congestion.
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11 FOR DRAFT Supporting theADOPTION Region’s Recovery from COVID-19 Page 58 of 166
12 COVID-19 has created an unprecedented situation, the impact of which is still being determined.
Bay of Plenty Regional Council plays several roles in COVID-19 recovery, including leading emergency response via its coordination of the Group Emergency Coordination Centre, and through our Regional Recovery Project, which has involved changing, moving and/or reprioritising work to aid recovery within the region. Planning, engagement and analysis has been undertaken and has identified two streams of work – a Bay of Connections Recovery Strategy that looks across and supports the wider region (including Taupō) and a Regional Council specific Recovery Programme.
1. BAY OF CONNECTION RECOVERY STRATEGY This will support iwi leaders, territorial authorities and local economic development agencies with their local projects and priorities, while also engaging with industry, the business sector and communities from a regional point of view. The intention is to provide regional advocacy to central government, build on partners’ own recovery plans and aspirations and focus on regional and local strengths. 2. BAY OF PLENTY REGIONAL COUNCILDRAFT RECOVERY PROGRAMME FOR The Bay of Plenty Regional Council Recovery Programme is a suite of Regional Council-led or supported initiatives to support recovery post COVID-19 that comprises infrastructure, environment, economic and information-led work that is a mix of business as usual and additional work. It is planned to include the following areas: ADOPTION • Supporting Māori Economic Development • Data Support, Dashboard and GIS • Economic Stimulus Work: a) ‘Green’ projects b) Crown Infrastructure (CIPS) projects c) SmartGrowth Partnership Stimulus Package • Sustainable Procurement • Supporting recovery through Regional Council processes
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13 Climate change
We are already feeling the impacts of climate change in our region; this summer we saw a drought declared in the North Island, with higher temperatures and lower than average rainfall experienced across the Bay.
If global greenhouse gas emissions continue at current rates without significant action to reduce them, then we expect to see further changes to the Bay of Plenty’s climate in the coming years, as illustrated in the graphic below. As a region, we will need to work together to adapt and adjust to these changes, alongside efforts to reduce our greenhouse gas emissions in order to limit the scale of these impacts. Recovery from COVID-19 presents us with an opportunity to do things differently and bring about transformational change, with the recovery process supporting a transition to a low carbon economy DRAFT andFOR enabling our communities to thrive as they adapt to a changing climate. New Zealand’s response to climate change at a national level is framed by Central Government’s Climate Change Response (Zero Carbon) Amendment Act 2019, which covers both mitigation (reducing greenhouse gas emissions) and adaptation (building resilience and dealing with the impacts of ADOPTIONclimate change). Meeting New Zealand’s international commitments to reduce greenhouse gas emissions will involve significant changes in the Bay of Plenty. We will need to look at changing our behaviours and doing things differently in all aspects of our lives: at home, in our businesses and within our communities. Even if we meet national emissions reduction targets, expected changes in temperature, rainfall patterns and sea level will have – and in some cases is already having – significant impacts on Bay of Plenty communities and infrastructure. To minimise these impacts, households, communities, businesses, and local government will have to adapt to a society and an economy with decreasing emissions and a changed climate.
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14 Councils and communities across New Zealand recognise the significant implications that climate change will have for their regions and the need for ADAPTATION – Adaptation is the process of adjustment to actual mitigation and adaptation actions at a local level. At the Bay of Plenty Regional or expected climate and its effects. In human systems, adaptation Council, this is reflected through our declaration of a climate change emergency in seeks to moderate or avoid harm or exploit beneficial opportunities. June 2019 alongside the adoption of our first Climate Change Action Plan. In some natural systems, human intervention may facilitate ‘Working with our communities’ is one of the four focus areas of our Climate adjustment. Change Action Plan. This is about how we approach the wider challenge of the MITIGATION – Climate change mitigation consists of actions to Bay of Plenty’s response as a region to climate change, both in terms of mitigation limit the magnitude or rate of long-term climate change. Climate and adaptation. We are continuing to look at the role we play in supporting our change mitigation generally involves reductions in human emissions communities and businesses as they look to make their mitigation choices and behaviours. At the same time, we will need to assist the community with building of greenhouse gases. resilience and dealing with the impacts of climate change (adaptation).
LIKELY CLIMATE CHANGE IMPACTS FOR THE BAY OF PLENTYFOR*
Current 2040 2090
Air Coastal 14-15°C 0.5-1.0 °C 2.5-3.0°C temperature Inland 10-11°C increase increase
DRAFT Sea level rise (metres) Hot days 32 52 99 (>25°C) per year ADOPTION 1.25m 2130 Frost days 7 5 2 For further information on our approach to (<0°C) per year 0.74m 2090 Climate Change please go to www.boprc.govt.nz/climatechange 0.28m 2040 2040 2090
Annual likelihood of 0.09m Current extreme rainfall event (>240mm in 24 hours) eg: April 2017 - Eastern Bay 1.5 times 3 times 1953 April 2018 - Ngongatahā more likely more likely Moturiki Vertical Datum
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15 Iwi-Māori Partnerships
Te Moana nui a Toi - a third of the Bay of Plenty population are Māori, which creates a unique and rich cultural layer. Te Ao Māori (the Māori world) exemplifies the four aspects of community wellbeing through:
FOR
He korowai mātauranga He korowai Tiaki Taiao He korowai He korowai aroha CULTURAL WELLBEING ENVIRONMENTAL WELLBEING whakamana tangata SOCIAL WELLBEING DRAFT ECONOMIC WELLBEING Iwi are strong exponents of Te Reo Māori are the kaitiaki in our region Iwi Treaty settlements have enabled There are a number of Māori health providers, and Tikanga Māori. There are multiple and are Treaty Partners, enshrined financial investment back into the kaumātua and community support agencies. proactive marae communities in the Resource Management Act community. Through Iwi Authorities, Māori land is being developed for Papakāinga, and many engaged kaitiaki and 1991, the Local ADOPTIONGovernment Act 2002 Iwi and Māori Land Trusts and Māori and Māori educational facilities (Kohanga mātauranga Māori practitioners. and in the Treaty of Waitangi. Their businesses, Iwi-Māori contribute Reo, Kura kaupapa) and Tertiary Institutes associations with the land, freshwater significantly to the region’s GDP. (Whare Wānanga) are expanding. There are There are approximately 39 Iwi and bodies and the coastal marine area, There are more than 5,000 Māori multiple marae communities (180 marae in 260 hapū in the region. affords them a significant role in the land blocks (40% Māori land). the region) many of which are utilised to care and well-being of Te Taiao. support the wider communities in emergency management. Iwi-Māori entities were mobilised to support Māori communities through COVID-19.
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16 Bay of Plenty Regional Council recognises the importance of authentic partnerships and has dedicated resource and funding to explore options with Iwi-Māori. Through Komiti Māori, direction and advice is given on appropriate ways to involve engagement with Māori, involvement in decision making processes and supporting economic aspirations. Key to building thriving Māori partnerships is understanding what success looks like, having a road map FOR of how to achieve that success, and having the time to nourish those relationships. Later in 2020, we will report on our Māori Relationship and Engagement Strategy, with that Strategy feeding into the LTP 2021-2031 process. Through the development of the Annual Plan 2020/21 Council has committed further funding of $700,000DRAFT to develop Māori Partnerships via the following mechanisms: • Te Arawa Lakes Trust – the establishment of a Te Arawa Environmental Service Hub (in the ŌkureiADOPTION rohe) • To implement outcomes of capacity and capability discussions had with Mauao and Kōhī iwi, including a stocktake • Additional Resource Management Act (RMA) fresh water policy and implementation capacity and capability • Implement Toi Tangata, Toi Moana’s People Plan and He Korowai Mātauranga (Mātauranga Māori Framework)
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17 OPERATING EXPENDITURE Our total operating expenditure budget for 2020/21 is now $146.8 million, compared to $144.8 million, as originally budgeted in year three of our plan. There are a number of items impacting on changes to our operating expenditure including the response to COVID-19 and Financial changes to our work described in the Community Outcomes section of this document. Alongside these changes, we have incorporated $2.3 million of additional efficiency savings through the way we work. This means we improve our efficiency, highlights FORwhile still ensuring to maintain the same levels of service to the community. 2020/21 Ngā tīpako pūteaDRAFT
Changes through our Annual Plan 2020/21ADOPTION have Integrated Catchment Management $23.1 m resulted in a number of adjustments to our operating Flood Protection and Control $13.5 m and capital expenditure in 2020/21 compared to what Resource Regulation and Monitoring $14.8 m Transportation $32.2 m was originally set out in the year three budget in the OUR PLANNED OPERATIONAL Regional Development $5.4 m SPENDING Long Term Plan 2018-2028. Regional Planning and Engagement $14.8 m Emergency Management $2.8 m Technical Services $10.9 m Corporate Services $29.3 m The consequential impacts of New Zealand’s COVID-19 response have been included in this Annual Plan. As a result, there are changes to how our work Total operating spending planned for 2020/21 is $146.8 million is funded and these are summarised in the sections below. Page 64 of 166
18 CAPITAL EXPENDITURE FUNDING OUR WORK Our total capital expenditure budget for year three is now $51.5 million, The money collected through your rates is expected to make up 42.6% of the compared to $30.7 million as originally budgeted in our Long Term Plan money that funds our operating expenditure in 2020/21. 2018-2028. This Annual Plan will see an average rates decrease for the 2020/21 financial year of Key changes to our capital work programme for 2020/21 are also outlined 2.8%, this is lower than the 2.8% increase that was forecast in the Long Term Plan. in the Community Outcomes section. In addition to the items described, we There is a zero general rates increase in 2020/21. The decrease in targeted rates, have carried forward budget from 2019/20 into 2020/21 of $8 million for our which affects the total rates you pay, depends on the area in which you live and the building upgrade project at our Tauranga and Whakatāne offices, as well as services you receive. In addition, property revaluations by Western Bay of Plenty, additional $8.35m for Rangitaiki-Tarawera River scheme. Whakatāne, Ōpōtiki and Taupō District Councils will affect the final rates you pay. OurFOR proposed zero general rate increase allows us to help support our region recover from the impacts of COVID-19 by alleviating financial strain to ratepayers. We will continue working towards achieving our vision and community outcomes, and delivering the services you expect from us. DRAFT The graph below shows all of our sources of income for 2020/21.
ADOPTION General rates $28.4 m Integrated Catchment Management $8.4 m Targeted rates $28.7 m Flood Protection and Control $30.2 m Dividends $33.2 m Transportation $0.9 m External interest income $5.8 m CAPITAL OUR SOURCES EXPENDITURE Regional Development $1.0 m OF INCOME Internal interest income $4.3 m Technical Services $1.1 m Operating grants and subsidies $19.5 m Corporate Services $9.9 m Other revenue $3.0 m Fees and charges $11.1 m
Total capital expenditure planned for 2020/21 is $51.5 million Total income planned for 2020/21 is $134.0 million Page 65 of 166
19 The graph to the right shows rates comparisons between what you are paying now, what was originally planned UNBALANCED for year two of the Long Term Plan 2018-2028, and what has been confirmed through Annual Plan 2020/21. The BUDGET STATEMENT information shown is based on median property values, the level of rates you pay will vary depending on where you We propose to have an unbalanced live and your property value. budget in 2020/21. This means that our forecast operating revenue is less than our TOTAL RATES BY TERRITORIAL AUTHORITY - ANNUAL AVERAGE operating expenditure. The main reason for the forecast unbalanced budget is due to 900 contributing to third party infrastructure
837 projects, Civil Defence and using reserves to lessen 29 808 impact on ratepayers. This funding for 800 786 27 22 741 third party infrastructure projects was 23 committed to through our previous Long 700 685 Passenger Transport 652 24 650 Term Plan. 23 17 11 31 12 597 We have enough operating revenue and 600 28 FOR12 reserves Rotorua Lakes to meet our obligations. 500 471 22 458 450 23 436 444 424 423 27 Air Action Plan 29 409 25 98 69 27 21 400 631 605 21 591 60 543 59 444 338 427 411 Dollars per annum 329 323 197 318 21 361 180 159 194 20 18 27 24 300 116 18 17 Urban River Scheme rates 270 109 109 23 41 256 255 256 DRAFT104 36 34 31 35 23 24 28 22 22 15 14 34 31 200 64 69 65 55 31 29 General Rates
100 222 229 226 225 240 258 248 248 169 174 173 173 175 177 176 189 194 192 191 ADOPTION191 200 196 196 162
0 2020/21 ID 2020/21 2020/21 ID 2020/21 2020/21 ID 2020/21 2020/21 ID 2020/21 2020/21 ID 2020/21 2020/21 ID 2020/21 2020/21 AP 2020/21 2020/21 AP 2020/21 2020/21 AP 2020/21 2020/21 AP 2020/21 2020/21 AP 2020/21 2020/21 AP 2020/21 2019/20 AP 2019/20 2019/20 AP 2019/20 2019/20 AP 2019/20 2019/20 AP 2019/20 2019/20 AP 2019/20 2019/20 AP 2019/20 2020/21 LTP 2020/21 2020/21 LTP 2020/21 2020/21 LTP 2020/21 2020/21 LTP 2020/21 2020/21 LTP 2020/21 2020/21 LTP 2020/21
LTP = Long Term Plan 2018-2028 ID = Draft Annual Plan Information Document AP = Annual Plan
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20 What’s happening in your area for 2020/21? Ngā nekehanga
WESTERN BAY / TAURANGA WHAKATĀNE / ŌPŌTIKI / EASTERN BAY REGION WIDE • Support the Tauranga Moana • Deliver the Flood Recovery Project following the eastern • Undertake maintenance, renewals, and Programme to work on improving Bay floods in April 2017 – as at 31 May 2020, we had capital projects for rivers and drainage the health of the Harbour and completed works on 362 sites of the 520 that require schemes across the region its catchment repairs including 81% of high priority sites • Responding to environmental • Renewal of the Kaituna Mole • Rangitāiki Wetland Restoration Project complaints and incidents, and – a river mouth control structure carrying out enforcement action where • As part of the Rangitāiki Floodway Upgrade located at the mouth of the appropriate Project work on stage 6 willFOR commence Kaituna River • Provide resource consent application • Continue the implementation of the processing services to meet Western Bay of Plenty Public growing demand Transport Blueprint • Provide a 24/7 navigation safety and • Monitoring of air quality in the DRAFT maritime oil spill response across Mount Maunganui Industrial Area the region • With our partners including Tauranga CIty • Deliver the Regional Pest Management Council, Western Bay District Council and NZTA Plan including working to prevent supporting the Urban Form and Transport Initiative ADOPTION further catfish incursions and containing the spread of wallabies • Education campaign to inform and reinforce awareness of the Motiti Protection Area • Provide public passenger transport services across the region • Support Civil Defence Emergency ROTORUA Management (CDEM) services across • Deliver the Rotorua Te Arawa Lakes Programme the region • Rotorua Air Quality programme • Bay of Connection Recovery Strategy – including hot swap loans and Bay of Plenty Regional Council • Support the delivery of Rotoiti sewerage reticulation Recovery Programme workstreams to support regional recovery from COVID-19 Page 67 of 166
21 Groups of activities Ngā rōpū mahinga
Key We deliver our work through nine groups of activities (what we do). LTP Operating expenditure
LTP Capital expenditure The following show our operating and capital expenditure for 2020/21, compared to our budget for 2019/20 and what was budgeted through year three of the Long Term Plan AP Operating expenditure
AP Capital expenditure
Integrated Catchment Management Flood Protection and Control Resource Regulation and Monitoring Te Whakahaere Tōpū i Ngā Wai DRAFTTe Pare me te Whakahaere Waipuke FORNgā Ture Rawa me te Aroturuki • Tauranga Harbour • Rivers and Drainage Schemes • Air Quality • Rotorua Lakes • Regional Flood Risk Coordination • Biosecurity • Kaituna • Resource Consents • Eastern Catchments • Regulatory Compliance • Regional Integrated Catchment Management ADOPTION• Maritime Operations
AP AP AP 26,444 8,684 14,929 26,526 19,348 261 2019/20 2019/20 2019/20
LTP Year 3 LTP Year 3 14,997 19,985 LTP Year 3 28,079 2020/21 19,688 111 2020/21 4,397 2020/21
AP AP 26,916 8,406 15,510 30,015 AP 2020/21 2020/21 2020/21 21,052 111
0 10,000 20,000 30,000 40,000 50,000 0 10,000 20,000 30,000 40,000 50,000 0 10,000 20,000 30,000 40,000 50,000 $000 $000 $000
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22 Transportation Regional Planning and Engagement Technical Services Ikiiki Te Hanga Mahere ā-Rohe me te Whakawhitiwhiti Ngā Ratonga Hangarau
• Passenger Transport • Regional Planning • Geospatial • Transport Planning • Māori Policy • Engineering • Geothermal • Data Services • Community Engagement • Science • Governance Services
AP AP AP 15,440 1,249 30,611 20,923 0 2019/20
2019/20 2,101 2019/20
LTP Year 3 LTP Year 3 LTP Year 3 28,875 0 20,920 0 16,389 1,162 2020/21 2020/21 2020/21
AP AP AP 15,824 1,101 2020/21 33,002 869 2020/21 22,182 0 2020/21
0 10,000 20,000 30,000 40,000 50,000 0 10,000 20,000 30,000 40,000 50,000 0 10,000 20,000 30,000 40,000 50,000 $000 $000 $000
Regional Development Emergency Management Corporate Services Before internal charges Whanaketanga ā-Rohe DRAFTTe Whakahaere Mate Whawhati FOR Tata Ngā Ratonga Rangatōpū and recoveries • Regional Infrastructure • Emergency Management • Communications • People and Capability • Regional Economic Development • Internal Services • Regional Parks • Corporate Property • Information and Communication Technology ADOPTION• Finance and Corporate Planning
AP AP AP 6,431 300 0 28,727 20,234
2019/20 2019/20 3,571 2019/20
LTP Year 3 LTP Year 3 LTP Year 3 6,723 1050 11 33,364 2020/21 2020/21 2020/21 3,644 3,994
AP 5,997 AP AP 1050 2020/21 11 29,32920,234 9,943 2020/21 3,847 2020/21
0 10,000 20,000 30,000 40,000 50,000 0 10,000 20,000 30,000 40,000 50,000 0 10,000 20,000 30,000 40,000 50,000 $000 $000 $000
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23 Policies and financial information Ngā kaupapa here me ngā pārongo pūtea
Changes to Accounting Policies and Forecasting Assumptions
ACCOUNTING POLICY CHANGES There are no accounting policy changes for 2020/21 Annual Plan. DRAFTForecasting assumption changesFOR The following are changes to the forecasting assumptions since the Long Term Plan 2018-2028:
ADOPTION2020/21 Year 3 Assumption Long Term Plan Annual Plan 1. Investment income 5.1% 3.5% 2. Number of rating units 130,014 131,514 3. Borrowing and expected interest rates 4.0% 3.0%
For the full forecasting assumptions please refer to the Long Term Plan 2018-2028, pages 177-183.
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24 Prospective Financial Statements
PROSPECTIVE STATEMENT OF COMPREHENSIVE 2019/20 2020/21 REVENUE AND EXPENSE Year 3 Annual Plan Long Term Plan Annual Plan Change Note $000 $000 $000 $000 OPERATING REVENUE General rates 27,544 28,934 28,471 463 Targeted rates 29,369 29,202 28,727 475 Subsidies and grants 23,032 19,007 22,892 (3,885) Fees and charges 11,533 12,318 11,080 1,238 Finance income 6,528 7,026 5,781 1,245 Dividends 32,200 33,200 33,200 0 Other revenue FOR6,492 7,875 6,702 1,173 Total operating revenue 1 136,698 137,562 136,853 709
OPERATING EXPENDITURE Personnel expenses 42,050 42,580 44,432 (1,852) Depreciation and amortisation DRAFT3 8,138 8,799 9,130 (331) Finance costs 3,547 6,372 3,258 3,114 Trading and other expenses 80,316 78,939 85,625 (6,686) Total operating expenditure ADOPTION1 134,051 136,690 142,445 (5,755) Net surplus (deficit) 2,647 872 (5,592) 6,464
OTHER COMPREHENSIVE REVENUE AND EXPENSE Gain on property revaluations 1,221 1,536 1,536 0 Gain on infrastructure asset revaluations 6,573 7,875 7,875 0 Gain on maritime asset revaluations 12 16 16 0 Financial assets at fair value through other comprehensive revenue and expense 276 158 158 0 Total other comprehensive revenue and expense 8,082 9,585 9,585 0
Total comprehensive revenue and expense 10,729 10,457 3,993 6,464 Page 71 of 166
25 PROSPECTIVE STATEMENT OF CHANGES IN NET ASSETS/EQUITY 2019/20 2020/21 Year 3 Annual Plan Long Term Plan Annual Plan Change $000 $000 $000 $000 Balance at 1 July 462,605 444,318 524,655 80,337 Total comprehensive revenue and expense previously reported 10,729 10,457 3,993 (6,464)
Balance at 30 June 473,334 454,775 528,648 73,873
Total comprehensive revenue and expense attributable to: Equity holders of the parent 10,729 10,457 3,993 (6,464)
PROSPECTIVE STATEMENT OF FINANCIAL POSITION 2019/20 2020/21 Year 3 AnnualFOR Plan Long Term Plan Annual Plan Change Notes $000 $000 $000 $000 CURRENT ASSETS Cash and cash equivalents 33,607 18,492 24,166 5,674 Trade and other receivables 13,110 15,156 16,914 1,758 Other financial assets - current DRAFT 67,400 24,798 179,606 154,808 Inventories 237 217 245 28 Total current assets 114,354 58,663 220,931 162,268 NON-CURRENT ASSETS ADOPTION Trade and other receivables - non-current 2,189 2,137 1,857 (280) Property plant and equipment 455,254 459,328 516,276 56,948 Intangible assets 6,938 7,273 5,498 (1,775) Other financial assets - long term 125,067 124,269 31,447 (92,822) Investment in subsidiaries 1,877 1,877 10,148 8,271 Total non-current assets 591,325 594,884 565,226 (29,658)
Total assets 705,679 653,547 786,157 132,610
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26 PROSPECTIVE STATEMENT OF FINANCIAL POSITION continued 2019/20 2020/21 Year 3 Annual Plan Long Term Plan Annual Plan Change Notes $000 $000 $000 $000 CURRENT LIABILITIES Trade and other payables 21,458 12,643 16,542 3,899 Employee benefit liabilities 5,202 4,806 4,916 110 Borrowings - short term 100,000 0 90,500 90,500 Total current liabilities 126,660 17,449 111,958 94,509
NON-CURRENT LIABILITIES Employee benefit liabilities - long term 1,165 1,103 1,251 148 Borrowings - long term 89,520 165,220 140,900 (24,320) Put option 15,000 15,000 3,400 (11,600) Total non-current liabilities 105,685 181,323 145,551 (35,772) Total liabilities FOR232,345 198,772 257,509 58,737 Total net assets 473,334 454,775 528,648 73,873
EQUITY Retained earnings 197,879 189,559 192,685 3,126 Asset revaluation reserve DRAFT2 158,276 150,046 197,198 47,152 Asset replacement reserve 2 20,454 18,734 40,234 21,500 Environmental enhancement fund 2 726 237 465 228 Disaster reserve 2 3,486 3,991 2,738 (1,253) Equalisation reserve ADOPTION2 3,331 208 5,340 5,132 Infrastructure fund reserve 2 1,005 9,251 5,453 (3,798) Regional fund reserve 2 34,011 31,370 33,435 2,065 Toi Moana reserve 2 45,000 45,000 45,000 0 Rates current account reserve 2 3,963 1,685 3,431 1,746 Rotorua lakes deed funding reserve 2 1,314 718 401 (317) Kaituna NZTA reserve 2 569 548 606 58 CDEM reserve 2 1,341 600 0 (600) Kaituna River authority reserve 2 234 255 189 (66) Kaituna River remediation 2 464 445 487 42 Financial assets reserve 2 1,281 2,128 986 (1,142) Total equity 473,334 454,775 528,648 73,873 Page 73 of 166
27 PROSPECTIVE STATEMENT OF CASHFLOWS 2019/20 2020/21 Year 3 Annual Plan Long Term Plan Annual Plan Change $000 $000 $000 $000 CASH FLOWS FROM OPERATING ACTIVITIES General and targeted rates 56,815 57,992 57,198 (794) Grants and subsidies 23,003 17,784 22,892 5,108 GST 96 1,776 95 (1,681) Other receipts from customers 17,914 21,282 17,782 (3,500) Interest received 6,507 7,008 5,781 (1,227) Interest paid (3,547) 6,372 (3,258) (9,630) Dividends 32,200 33,200 33,200 0 Payments to suppliers (80,779) (79,066) (85,622) (6,556) Payments to employees (42,162) (42,080) (44,433) (2,353) Net cash from operating activities 10,047FOR24,268 3,635 (20,633) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant & equipment 0 0 0 0 Purchase of property plant & equipment (56,975) (29,144) (50,715) (21,571) Purchase of intangible assets (2,380) (1,565) (947) 618 Purchase of investments DRAFT 0 (15,926) (38,995) (23,069) Investment withdrawals 16,005 0 54,776 54,776 Net cash from investing activities (43,350) (46,635) (35,881) 10,754
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings ADOPTION50,000 23,608 40,000 16,392 Loan issued to QHL 0 0 0 0 Borrower Notes 0 0 (840) (840) Loans issued to ratepayers (2,010) (2,010) (2,010) 0 Loan repayments from ratepayers 581 922 770 (152) Net cash from financing activities 48,571 22,520 37,920 15,400
Net increase (decrease) in cash, cash equivalents and bank overdrafts 15,268 153 5,674 5,521 Cash, cash equivalents and bank overdrafts at the beginning of the year 18,339 18,339 18,492 153 Cash, cash equivalents and bank overdrafts at the end of the year 33,607 18,492 24,166 5,674
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28 Notes to Prospective Financial Statements
NOTE 1 - SUMMARY FINANCIAL STATEMENTS - RECONCILIATION 2019/20 2020/21 TO STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE AND Year 3 FUNDING IMPACT STATEMENT Annual Plan Long Term Plan Annual Plan Change $000 $000 $000 $000 REVENUE BY GROUP OF ACTIVITIES Integrated Catchment Management 8,712 8,565 8,755 (190) Flood Protection & Control 11,944 12,800 12,416 384 Resource Regulation & Monitoring 6,361 6,566 6,872 (306) Transportation 28,376 26,990 28,667 (1,677) Regional Development 8 8 8 0 Regional Planning & Engagement 0 0 0 0 Emergency Management 3,574 3,649 3,001 648 Technical Services FOR2,187 2,288 2,310 (22) Corporate Services 45,406 48,723 43,520 5,203 Activity operating revenue 106,568 109,589 105,549 4,040
General rates 27,544 28,934 28,471 463 Investment income allocated DRAFT 0 0 0 0 Total activity operating revenue 134,112 138,523 134,020 4,503
RECONCILIATION TO INCOME STATEMENT Less internal interest ADOPTION(6,436) (8,062) (4,312) (3,750) Plus subsidies and grants for capital expenditure 9,022 7,101 7,145 (44) Total operating revenue - income statement 136,698 137,562 136,853 709
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29 NOTE 1 continued 2019/20 2020/21 Year 3 Annual Plan Long Term Plan Annual Plan Change $000 $000 $000 $000 RECONCILIATION TO FUNDING IMPACT STATEMENT Less subsidies and grants for capital expenditure (4,715) (1,400) (3,404) 2,004 Less other dedicated capital funding (4,307) (5,701) (3,740) (1,961) Total sources of operating funding 127,676 130,461 129,709 752
EXPENDITURE BY GROUP OF ACTIVITIES Integrated Catchment Management 26,443 28,080 26,915 (1,165) Flood Protection & Control 14,929 14,997 15,510 513 Resource Regulation & Monitoring 19,348 19,688 21,052 1,364 Transportation 30,611 28,875 33,002 4,127 Regional Development 6,431 6,723 5,997 (726) Regional Planning & Engagement 20,923FOR 20,920 22,182 1,262 Emergency Management 3,571 3,644 3,847 203 Technical Services 15,440 16,389 15,824 (565) Corporate Services 2,791 5,436 2,428 (3,008) Total operating expenditure 140,487 144,752 146,757 2,005
RECONCILIATION TO INCOME STATEMENT DRAFT Less internal interest (6,436) (8,062) (4,312) 3,750 Total expenditure - income statement 134,051 136,690 142,445 5,755
RECONCILIATION TO FUNDING IMPACT STATEMENT ADOPTION Less depreciation (8,138) (8,799) (9,130) (331) Total applications of operating funding 125,913 127,891 133,315 5,424 Net cost of service 2,647 872 (5,592) (6,464)
Surplus (deficit) of operating funding 1,763 2,570 (3,606) (6,176)
Each group of activity financial statement includes internal costs, internal revenues, and non-monetary transactions. In order to fairly reflect the total external operations for the Council in the income statement, internal transactions are eliminated as shown. In order to comply with schedule 10 of the Local Government Act 2002, internal and non-monetary transactions are eliminated in the funding impact statement (whole of council) as shown. Page 76 of 166
30 NOTE 2 - RESERVES 2019/20 2020/21 Year 3 Annual Plan Long Term Plan Annual Plan Change $000 $000 $000 $000 ASSET REVALUATION RESERVE Opening balance surplus (deficit) 150,470 140,616 187,769 47,153 Deposits 7,806 9,428 9,428 0 Withdrawals 0 0 0 0 Closing balance surplus (deficit) 158,276 150,044 197,197 47,153
ASSET REPLACEMENT RESERVE Opening balance surplus (deficit) (1,529) 11,127 22,845 11,718 Deposits 43,685 25,887 73,771 47,884 Withdrawals (21,702) (18,280) (56,381) (38,101) Closing balance surplus (deficit) 20,454 18,734 40,235 21,501 ENVIRONMENTAL ENHANCEMENT FUND FOR Opening balance surplus (deficit) 726 237 465 228 Deposits 313 320 333 13 Withdrawals (313) (320) (333) (13) Closing balance surplus (deficit) DRAFT 726 237 465 228 DISASTER RESERVES Opening balance surplus (deficit) 3,114 2,998 1,744 (1,254) Deposits 960 994 994 0 Withdrawals ADOPTION(588) 0 0 0 Closing balance surplus (deficit) 3,486 3,992 2,738 (1,254)
EQUALISATION FUND RESERVE Opening balance surplus (deficit) 2,824 760 10,079 9,319 Deposits 507 (552) 0 552 Withdrawals 0 0 (4,739) (4,739) Closing balance surplus (deficit) 3,331 208 5,340 5,132
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31 NOTE 2 - RESERVES continued 2019/20 2020/21 Year 3 Annual Plan Long Term Plan Annual Plan Change $000 $000 $000 $000 INFRASTRUCTURE FUND RESERVE Opening balance surplus (deficit) 10,871 19,419 9,198 (10,221) Deposits 0 0 0 0 Withdrawals (9,866) (10,168) (3,745) 6,423 Closing balance surplus (deficit) 1,005 9,251 5,453 (3,798)
REGIONAL PROJECT FUND RESERVE Opening balance surplus (deficit) 30,655 27,860 32,925 5,065 Deposits 3,356 3,510 3,510 0 Withdrawals 0 0 (3,000) (3,000) Closing balance surplus (deficit) 34,011 31,370 33,435 2,065
TOI MOANA RESERVE Opening balance surplus (deficit) 45,000FOR45,000 45,000 0 Deposits 0 0 0 0 Withdrawals 0 0 0 0 Closing balance surplus (deficit) 45,000 45,000 45,000 0
RATES CURRENT ACCOUNT RESERVE Opening balance surplus (deficit) DRAFT 4,116 2,000 6,086 4,086 Deposits 979 1,120 585 (535) Withdrawals (1,132) (1,435) (3,241) (1,806) Closing balance surplus (deficit) ADOPTION3,963 1,685 3,430 1,745 ROTORUA LAKES DEED FUNDING RESERVE Opening balance surplus (deficit) 1,656 718 3,401 2,683 Deposits 7,195 0 0 0 Withdrawals (7,537) 0 (3,000) (3,000) Closing balance surplus (deficit) 1,314 718 401 (317)
KAITUNA NZTA RESERVE Opening balance surplus (deficit) 569 548 606 58 Deposits 0 0 0 0 Withdrawals 0 0 0 0 Closing balance surplus (deficit) Page 78 of 166 569 548 606 58
32 NOTE 2 - RESERVES continued 2019/20 2020/21 Year 3 Annual Plan Long Term Plan Annual Plan Change $000 $000 $000 $000 CDEM GROUP RESERVE Opening balance surplus (deficit) 1,341 600 570 (30) Deposits 0 0 0 0 Withdrawals 0 0 (570) (570) Closing balance surplus (deficit) 1,341 600 0 (600)
KAITUNA RIVER AUTHORITY RESERVE Opening balance surplus (deficit) 234 255 190 (65) Deposits 0 0 0 0 Withdrawals 0 0 0 0 Closing balance surplus (deficit) 234 255 190 (65)
KAITUNA RIVER REMEDIATION Opening balance surplus (deficit) FOR464 445 487 42 Deposits 0 0 0 0 Withdrawals 0 0 0 0 Closing balance surplus (deficit) 464 445 487 42
FINANCIAL ASSETS FOR RESALE RESERVE Opening balance surplus (deficit) DRAFT 1,005 1,970 828 (1,142) Deposits 276 158 158 0 Withdrawals 0 0 0 0 Closing balance surplus (deficit) ADOPTION1,281 2,128 986 (1,142) TOTAL RESERVES Opening balance surplus (deficit) 251,516 254,553 322,193 67,640 Deposits 65,077 40,865 88,779 47,914 Withdrawals (41,138) (30,203) (75,009) (44,806) Closing balance surplus (deficit) 275,455 265,215 335,963 70,748
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33 NOTE 3 - DEPRECIATION AND AMORTISATION 2019/20 2020/21 Year 3 Annual Plan Long Term Plan Annual Plan Change $000 $000 $000 $000 DEPRECIATION AND AMORTISATION BY GROUP OF ACTIVITIES Integrated Catchment Management 1,014 1,039 1,114 75 Flood Protection & Control 1,494 1,465 1,874 409 Resource Regulation & Monitoring 74 99 81 (18) Transportation 327 354 390 36 Regional Development 56 79 68 (11) Regional Planning & Engagement 0 0 0 0 Emergency Management 0 0 0 0 Technical Services 737 1,078 885 (193) Corporate Services 4,436 4,685 4,718 33 Total depreciation and amortisation 8,138 8,799 9,130 331
NOTE - 4 FINANCIAL PRUDENCE The purpose of this statement is to disclose the Council’s planned financial performance in relation to various benchmarks, to enable the assessment of whether the Council is prudently managing its revenues, expenses, assets, liabilities and general financial dealings. The Council is required to include this statement in its Annual Plan in accordance with the Local Government (Financial Reporting and Prudence) Regulations 2014 (the regulations). Refer to the regulations for more information,DRAFT including definitions of some of the termsFOR used in this statement. 2020/21 Year 3 Long Benchmark Ratio Term Plan Limit Annual Plan Met 1. a) Rates affordability General quantified limit on rates ADOPTIONIncome <= 28,934,000 28,471,000 yes quantified limit on rates increases Increases <= 6.1% 4.3% yes 1. b) Rates affordability Targeted quantified limit on rates Income <= 29,202,000 28,727,066 yes quantified limit on rates increases Increases <= 6.9% 4.4% yes 2. Debt affordabilty quantified limit on borrowing Net debt/total revenue <300% 250% 35% yes quantified limit on borrowing Net interest/total revenue <20% 20% -2% yes quantified limit on borrowing Net interest/annual rates revenue <30% 30% 4% yes quantified limit on borrowing Liquidity >110% 110% 181% yes 3. Balanced budget 100% Revenue >=operational 100% 96% no 4. Essential services 100% Planned capital expenditure on network services >= expected depreciation 100% 1831% yes 5. Debt servicing 10% Planned borrowing cost is <= 10% of planned revenue 10% 2% yes
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34 RATES AFFORDABILITY BENCHMARK BALANCED BUDGET BENCHMARK DEBT SERVICING BENCHMARK For this benchmark For this benchmark, the Council’s planned revenue For this benchmark, the Council’s planned borrowing (excluding development contributions, vested assets, costs are presented as a proportion of planned • The Council’s planned rates income for the year financial contributions, gains on derivative financial revenue (excluding development contributions, is compared with a quantified limit/quantified instruments and revaluations of property, plant financial contributions, vested assets, gains on limits on rates contained in the financial strategy or equipment) is presented as a proportion of its derivative financial instruments and revaluations of included in the Council’s Long Term Plan; and planned operating expenses (excluding losses on property, plan or equipment). • The Council’s planned rates increases for the year derivative financial instruments and revaluations of Because Statistics New Zealand projects that the are compared with a quantified limit/quantified property, plant or equipment). Council’s population will grow as fast as the national limits on rates increases for the year contained The Council meets the balanced budget benchmark population growth rate, it meets the debt servicing in the financial strategy included in the Council’s if its revenue equals, or is greater than its benchmark if its planned borrowing costs equal, or Long Term Plan. operating expenses. are less than 10% of its planned revenue. The Council meets the rates affordability benchmark if: • Its planned rates income for the year equals, or is ESSENTIAL SERVICES BENCHMARK less than each quantified limit on rates; and For this benchmark, the Council’s planned capital • Its planned rates increases for the year equal, expenditure on network services, is presented or are less than each quantified limit on as a proportion of expected depreciation on rates increases. network services. DRAFTThe Council meets the essential servicesFOR benchmark if its planned capital expenditure on network services DEBT AFFORDABILITY BENCHMARK equals, or is greater than expected depreciation on network services. For this benchmark, the Council’s planned borrowing is compared with (a quantified limit/quantified ADOPTION limits) on borrowing contained in the financial strategy included in the Council’s Long Term Plan. The Council meets the debt affordability benchmark if its planned borrowing is within each quantified limit on borrowing.
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35 Funding Impact Statement
INTRODUCTION GENERAL RATES UNIFORM ANNUAL GENERAL CHARGE Bay of Plenty Regional Council has prepared this General rates based on land value In addition, a Uniform Annual General Charge Funding Impact Statement in accordance with (UAGC) is set in accordance with Section 15(1)(a) The general rate is set in accordance with Sections Clause 20, Part 2 of Schedule 10 of the Local of the Local Government (Rating) Act 2002 for all 13 and 131 of the Local Government (Rating) Act Government Act 2002. Examples of the impact of rateable land within the region. It is calculated as a 2002 based on the projected valuation of all rateable rating proposals on the rates assessed on different fixed amount per rating unit (according to each local land in the districts of the constituent Territorial categories of land are included in the Long Term authority’s interpretation of a separately rated unit, Authorities at a uniform rate in the dollar. The rate Plan’s introduction section. for the purposes of a UAGC) in the dollar is different according to the location of All 2020/21 rates tables exclude the Council’s land within each Territorial Authority district or city. Uniform Annual General Charge $16,546,657 Goods and Services Tax component. The differences are in accordance with a Certificate Fixed amount per rating unit $125.82 of Valuation changes supplied by Quotable Value NZ Limited. FOR MAJOR RIVER AND DRAINAGE SCHEME General Rates Land Value $12,132,453 TARGETED RATES Constituent Authority Rates expressed as cents per dollars of rateable Scheme rating maps for all major river and drainage land value schemes are available from Bay of Plenty Regional DRAFTKawerau 0.023330 Council. For detail on how to access these maps, visit our website www.boprc.govt.nz Ōpōtiki 0.019879 Rotorua (Pt) 0.023851 The targeted rates are set for the Flood Protection and Control Group of Activities. ADOPTIONTaupō (Pt) 0.019879 Tauranga 0.020788 Kaituna Catchment Control Scheme targeted rates Western Bay of Plenty 0.019879 A targeted rate is set differentially in accordance Whakatāne 0.019879 with Sections 16, 17 and 18 of the Local Government (Rating) Act 2002, for all rateable land situated Offshore Islands 0.128453 in the Kaituna Catchment Control Scheme within the Tauranga, Western Bay of Plenty and Rotorua constituent districts. The Council sets two targeted rates; the first on where the land is situated and calculated using the area of land within the rating unit, and the second on where the land is situated and calculated using the extent of service provided. Page 82 of 166
36 Kaituna Catchment Control Scheme targeted rates Kaituna Catchment Control Scheme targeted rates Rangitāiki-Tarawera Rivers Scheme targeted rates Category Rate Site Revenue Category Rate Site Revenue Category Rate per hectare $ Revenue sought $ per hectare $ component $ sought $ per hectare $ component $ sought $ C2 5.11 263,922 A1P 185.08 185.08 366,679 R02 N/A 55.52 58,055 C3 1.70 161,383 A2P 148.06 166.57 22,259 R03 27.76 23.14 564,592 C4 1.13 71,138 A3P 111.05 148.06 18,864 TP1 18.51 27.76 81,882 C5 0.85 18,287 A4P 74.03 129.56 20,557 Total 1,843,717 U1 4,339.48 173,871 A1 148.06 138.81 91,568 N/A = Not Applicable U2 4,084.22 231,534 A2 120.30 120.30 43,071 Rangitāiki-Tarawera Rivers Scheme targeted rates U3 737.43 18,501 A3 92.54 120.30 43,246 A targeted rate is set differentially in accordance U4 482.16 379,434 A4 64.78 120.30 25,813 with Sections 16, 17 and 18 of the Local Government U5 340.35 34,664 A5 55.52 120.30 74,642 (Rating) Act 2002, for all rateable land situated in Total 3,830,077 A6 46.27 101.79 17,858 the Rangitāiki-Tarawera Rivers Scheme Catchment A7 33.31 92.54 17,097 within the Whakatāne, Kawerau, Rotorua and Taupō A8 22.21 N/A 2,455 constituent districts. The Council setsFOR one targeted Whakatāne-Tauranga Rivers Scheme targeted rates A9 7.40 N/A 643 rate on where the land is situated and the extent of A targeted rate is set differentially in accordance A10 3.70 N/A 613 service provided, calculated using the area of land with Sections 16, 17 and 18 of the Local Government within the rating unit. A11 1.85 N/A 450 (Rating) Act 2002, for all rateable land situated in the Whakatāne-Tauranga Rivers Scheme Catchment B1 22.21 55.52 19,068 Rangitāiki-Tarawera Rivers Scheme targeted rates DRAFT within the Whakatāne constituent district. Council B2 16.66 46.27 5,970 Category Rate per hectare $ Revenue sought $ sets two targeted rates; the first on where the land B3 9.25 37.02 17,327 A1 136.14 1,095,678 is situated and calculated using the area of land B4 5.55 27.76 30,502 A2 96.43 151,306 within the rating unit, and the second on where the B5 3.70 27.76 50,786 ADOPTIONA3 73.74 134,843 land is situated and calculated using the extent of C1 5.55 27.76 5,550 A4 56.73 64,969 service provided. C2 3.24 27.76 92,761 A5 48.22 331,846 Whakatāne-Tauranga Rivers Scheme targeted rates C3 2.22 27.76 25,702 A6 17.02 2,814 Category Rate Site Revenue C4 1.85 N/A 3,852 B1 85.09 180,434 per hectare $ component $ sought $ C6R 1.11 N/A 1,200 B2 68.07 33,039 A1 141.83 141.83 104,809 C8 0.74 18.51 5,289 B3 51.05 36,229 A2 120.01 120.01 47,666 C5 2.22 18.51 96,023 B4 39.71 340,715 A3 98.19 103.64 156,643 C6 1.30 14.81 14,517 B5 28.36 45,463 A4 81.82 92.73 252,600 C7 0.74 55.52 2,048 B6 10.21 378 A5 60.00 N/A 14,490 C9 0.56 14.81 3,689 B7 7.94 1,427 A6 43.64 76.37 18,965 R01 37.02 74.03 19,089 C1 Page 83 of7.37 166 58,202 A7 32.73 65.46 24,415
37 Whakatāne-Tauranga Rivers Scheme targeted rates Waioeka-Otara Rivers Scheme targeted rates Waioeka-Otara Rivers Scheme targeted rates Category Rate Site Revenue A targeted rate is set differentially in accordance Category Rate Site Revenue per hectare $ component $ sought $ with Sections 16, 17 and 18 of the Local Government per hectare $ component $ sought $ A8 21.82 60.00 53,094 (Rating) Act 2002, for all rateable land situated C6 1.13 56.46 10,124 A9 10.91 N/A 1,409 in the Waioeka-Otara Rivers Scheme Catchment R 2.82 N/A 268 within the Ōpōtiki constituent district. Council sets B1 49.09 N/A 108,724 U1AC 1,693.88 1,242.18 48,934 B2 27.27 49.09 77,431 two targeted rates; the first on where the land is situated and calculated using the area of land U1AR 846.94 621.09 70,770 B3 21.82 32.73 42,068 within the rating unit, and the second on where the U1C 1,355.10 1,016.33 150,369 B4 16.36 27.27 7,341 land is situated and calculated using the extent of U1R 677.55 508.16 429,753 B5 2.18 N/A 986 service provided. U2AC 1,242.18 903.40 15,679 C1 6.55 54.55 29,510 Waioeka-Otara Rivers Scheme targeted rates U2AR 621.09 451.70 53,119 C2 4.36 21.82 43,305 Category Rate Site Revenue U2C 903.40 790.48 10,230 C3 3.27 21.82 30,914 per hectare $ component $ sought $ C4 2.18 5.45 5,129 U2R 451.70 395.24 121,827 A1A 367.01 423.47 21,833 C5 1.09 5.45 26,478 FORU3R 112.93 225.85 93,556 A2 197.62 310.54 26,919 U1 490.94 147.28 394,155 Total 1,548,991 A2A 282.31 352.89 12,756 U2 360.02 114.55 114,102 N/A = Not Applicable A3 169.39 254.08 127,794 U3 190.92 76.37 178,208 U4 120.01 65.46 87,872 A3A 225.85 310.54 5,790 Rangitāiki Drainage targeted rates U5 10.91 N/A 7 DRAFTA4 141.16 197.62 76,162 A targeted rate is set differentially in accordance Total 1,820,321 A4A 183.50 254.08 2,402 with Sections 16, 17 and 18 of the Local Government (Rating) Act 2002, for all rateable land in the defined N/A = Not Applicable A5 127.04 197.62 58,617 Rangitāiki Drainage Rating Area situated on the A6 98.81 197.62 899 ADOPTIONRangitāiki Plains within the Whakatāne constituent A7 84.69 197.62 10,205 district. Council sets one targeted rate on where A8 70.58 197.62 92,110 the land is situated and the extent of service B1 56.46 N/A 15,228 provided, calculated using the area of land within the rating unit. B2 8.47 N/A 144 C1 14.12 169.39 41,865 Rangitāiki Drainage targeted rates C2 8.47 169.39 14,448 Category Rate per hectare $ Revenue sought $ C3 5.65 141.16 13,893 A 57.12 441,855 C4 4.23 56.46 20,164 B 51.41 57,151 C5 2.82 56.46 3,133 C 47.98 69,229
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38 Rangitāiki Drainage targeted rates Rotorua Lakes Programme targeted rate Rotorua Air Action Plan Implementation targeted rate Category Rate per hectare $ Revenue sought $ A targeted rate is set differentially in accordance Category Rate per Revenue D 41.70 254,597 with Sections 16, 17 and 18 of the Local Government rating unit $ sought $ E 34.27 93,544 (Rating Act) 2002, for all rateable properties over Rotorua Urban 12.55 277,796 the whole area of land of Rotorua District within F 25.71 63,545 the Bay of Plenty Regional Council region, with Rotorua Air - Clean Heat Conversion targeted rates G 19.42 72,522 categories of land further defined by the area of land H 14.28 1,591 within the rating unit. Liability for the targeted rate is A targeted rate is set differentially in accordance I 6.85 5,274 calculated as a fixed amount per rating unit. with Sections 16, 17 and 18 of the Local Government (Rating) Act 2002, for rateable properties within the U1 114.25 25,261 The targeted rate is set for the Integrated Catchment Rotorua Airshed Area, with liability calculated as the Management Group of Activities - Rotorua U2 57.12 3,482 extent of loans provided by Council under the Clean Lakes Activity. Total 1,088,051 Heat Conversion Scheme. Rotorua Lakes Programme targeted rate Rotorua Air Clean Heat Conversion targeted rates Category Rate per Revenue Passenger Transport targeted rate - All Properties rating unitFOR $ sought $ Category Rate $ Revenue sought $ CH001 591.30 41,983 A targeted rate is set differentially in accordance 0 - 1.9999ha 90.32 2,314,573 CH002 573.91 15,496 with Sections 16, 17 and 18 of the Local Government 2 - 9.9999ha 191.96 135,945 (Rating) Act 2002 as an amount per rating unit on all CH003 556.52 18,365 10ha and over 628.11 479,322 rateable properties within the defined boundaries of CH004 539.13 15,635 Tauranga City, urban Rotorua, Western Bay district Total 2,929,840 DRAFT CH005 521.74 14,609 and the Whakatāne district and calculated on the extent of the service provided. CH006 504.35 9,078 Rotorua Air Action Plan Implementation CH007 486.96 7,791 The targeted rate are set for the Transportation targeted rate Group of Activities - Passenger Transport. CH008 469.57 11,739 ADOPTIONA targeted rate is set uniformly in accordance with CH009 452.17 2,713 Passenger Transport targeted rate Sections 16, 17 and 18 of the Local Government CH010 434.78 2,609 Category Rate per Revenue (Rating) Act 2002, for all rateable land within the rating unit $ sought $ defined boundaries of urban Rotorua, with liability CH011 417.39 3,339 Tauranga City 168.62 9,918,753 calculated as a fixed amount per rating unit. CH1 400.00 116,400 Rotorua Urban 51.54 1,141,096 The targeted rates are set for the Resource CH2 395.65 17,013 Western Bay District 15.19 346,406 Regulation Group of Activities - Rotorua Air CH3 391.30 16,435 Quality Activity. Whakatāne District 12.16 183,111 CH4 386.96 7,352 Total 11,589,366 CH5 382.61 18,748 CH6 378.26 12,104
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39 Rotorua Air Clean Heat Conversion targeted rates Rotorua Air Clean Heat Conversion targeted rates CIVIL DEFENCE EMERGENCY Category Rate $ Revenue sought $ Category Rate $ Revenue sought $ MANAGEMENT TARGETED RATE CH7 373.91 17,200 CH35 252.17 5,296 A targeted rate is set differentially in accordance CH8 369.57 10,348 CH36 247.83 2,726 with Sections 16, 17 and 18 of the Local Government (Rating) Act 2002 as an amount per rating unit on CH9 365.22 9,496 CH37 243.48 3,652 all rateable properties within the defined boundaries CH10 360.87 11,187 CH38 239.13 3,826 of Kawerau, Ōpōtiki, Rotorua, Tauranga, Western CH11 356.52 7,130 CH39 234.78 7,513 Bay of Plenty and Whakatāne constituent districts CH12 352.17 7,043 CH40 230.43 1,383 and calculated on the extent of service provided by Civil Defence Emergency Management group and CH13 347.83 6,609 CH41 226.09 2,939 Emergency Management Bay of Plenty. CH14 343.48 13,396 CH42 221.74 2,661 The targeted rates are set for the Emergency CH15 339.13 9,835 CH43 217.39 2,609 Management Group of Activities. CH16 334.78 13,056 CH44 213.04 2,557 CH17 330.43 3,304 CH45 208.70 2,087 Civil Defence Emergency Management targeted rate FORCategory - All Rate per Revenue CH18 326.09 7,174 CH46 204.35 2,248 Properties rating unit $ sought $ CH19 321.74 7,400 CH47 200.00 2,000 Kawerau 24.43 70,924 CH20 317.39 5,078 CH48 195.65 15,652 Ōpōtiki 23.54 117,306 CH21 313.04 5,635 Total 585,319 Rotorua 23.53 637,568 CH22 308.70 2,470DRAFT Tauranga 21.75 1,279,627 CH23 304.35 4,261 Western Bay of Plenty 21.30 485,701 CH24 300.00 7,800 Whakatāne 24.60 370,565 CH25 295.65 3,843 Total 2,961,691 CH26 291.30 4,370 ADOPTION CH27 286.96 8,035 CH28 282.61 10,739 CH29 278.26 3,896 CH30 273.91 3,561 CH31 269.57 3,774 CH32 265.22 1,591 CH33 260.87 3,913 CH34 256.52 4,617
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40 MINOR RIVERS AND DRAINAGE SCHEMES Huntress Creek Drainage District targeted rates Omeheu Adjunct Communal Pumped Drainage Scheme targeted rates TARGETED RATES Category Rate per hectare $ Revenue sought $ Category Rate per hectare $ Revenue sought $ The Council sets and collects rates from three minor A 71.48 15,057 A 75.06 772 rivers and drainage schemes situated in the Ōpōtiki B 54.80 4,348 area, and from 34 minor communally pumped B 56.29 4,512 C 35.74 2,594 drainage schemes situated on the Rangitāiki Plains. C 41.28 2,299 D 23.83 1,270 Scheme rating maps for all minor schemes are D 22.52 1,967 E 16.68 546 available from Bay of Plenty Regional Council. To see E 11.26 610 these maps, visit our website www.boprc.govt.nz F 7.15 2,385 F 3.75 88 Total 26,200 Minor Rivers and Drainage Schemes targeted URBAN 198.91 8,552 differential rates Waiotahi Drainage District targeted rates Total 18,800 Targeted rates are set differentially in accordance Category Rate per hectare $ Revenue sought $ with Section 16, 17 and 18 of the Local Government A 44.12 3,767 Lawrence Communal Pumped Drainage Scheme rates (Rating) Act 2002, for all rateable land situated Category Rate per hectare $ Revenue sought $ in the defined communal pumped drainage and B 36.76 FOR7,640 defined minor rivers and drainage schemes. Council C 29.41 1,857 A 543.10 15,315 sets one targeted rate on where the land is situated D 22.06 991 B 434.48 1,999 and the extent of service provided, calculated using E 14.71 63 C 271.55 1,923 the area of land within the rating unit. F 7.35 1,682 D 135.77 1,963 DRAFTTotal 16,000 Total targeted rates 21,200 Ōpōtiki
The following tables detail rate requirements Murray’s Communal Pumped Drainage Scheme rates for the three Ōpōtiki-based minor rivers and Rangitāiki Plains Category Rate per hectare $ Revenue sought $ drainage schemes. ADOPTIONThe following tables detail rate requirements for the A 87.04 13,281 34 minor communally pumped drainage schemes on Waiotahi River District targeted rates B 62.67 1,031 the Rangitāiki Plains. Category Rate per hectare $ Revenue sought $ C 55.71 2,669 A 94.95 10,313 Awaiti West Pumped Drainage Scheme targeted rate D 24.37 1,319 B 75.96 12,353 Category Rate per hectare $ Revenue sought $ Total 18,300 C 56.97 10,892 A 353.11 4,449 D 31.65 1,609 B 162.43 23,909 E 18.99 1,441 C 70.62 13,937 F 9.50 1,792 D 35.31 1,705 Total 38,400 Total 44,000 Page 87 of 166
41 Minor Drainage Schemes uniform targeted rates LUMP SUM CONTRIBUTIONS Western Bay of Plenty
Targeted rates are set uniformly in accordance with The Council will not be inviting lump sum Annual per Sections 16, 17 and 18 of the Local Government contributions for any targeted rates. Median Land Value Land Value $ property $ (Rating) Act 2002, for all rateable land situated in Lower Quartile 295,000 220.95 the defined drainage and defined minor rivers and EXAMPLES OF 2019/20 GENERAL Middle Quartile 455,000 252.76 drainage schemes. Council sets one targeted rate on RATES ONLY Upper Quartile 690,000 299.47 where the land is situated, and the area of land. Kawerau
Minor Drainage Schemes targeted uniform rates Annual per Whakatāne Category Rate per Revenue Median Land Value Land Value $ property $ hectare $ sought $ Lower Quartile 83,000 169.61 Annual per Median Land Value Land Value $ property $ Angle Road 43.58 10,000 Middle Quartile 106,000 174.98 Lower Quartile 141,000 190.61 Awakeri 16.47 4,700 Upper Quartile 120,000 178.24 Baird-Miller 32.70 4,500 Middle Quartile 225,000 207.31
Upper Quartile 350,000 232.16 Foubister 84.81 8,900 Ōpōtiki FOR Gordon 169.77 16,700 Annual per Greigs Road 68.66 49,000 Median Land Value Land Value $ property $ Halls 93.33 22,600 Lower Quartile 78,000 164.86 Riverslea Road 494.42 15,200 Middle Quartile 140,000 177.19 Kuhanui 60.27 5,000 DRAFTUpper Quartile 290,000 207.01 Longview-Richlands 86.26 10,000
Martin 38.90 5,200 Rotorua (Pt) Massey 12.42 5,300 Annual per Mexted-Withy 17.25 4,800 ADOPTION Median Land Value Land Value $ property $ Omeheu East 53.18 22,300 Lower Quartile 123,000 333.09 Pedersen - Topp 43.73 5,000 Middle Quartile 171,000 344.54 Platts 77.90 28,700 Upper Quartile 265,000 366.96 Reynolds 64.49 8,300 Robins Road 190.46 35,600 Tauranga Travurzas 58.58 11,600 Annual per Wylds 100.09 18,800 Median Land Value Land Value $ property $ Poplar Lane 192.04 10,800 Lower Quartile 275,000 373.35 Awaiti East 224.55 32,000 Middle Quartile 340,000 386.87 Total 335,000 Upper Quartile Page 88465,000 of 166 412.85
42 SCHEDULE TO FUNDING IMPACT STATEMENT - RATES REQUIREMENT
2019/20 2020/21 Year 3 Annual Plan Long Term Plan Annual Plan Change $000 $000 $000 $000 GENERAL RATES General rates based on land value 11,441 12,928 12,132 796 Uniform annual general charge (UAGC) 16,311 16,214 16,547 (333) Rates remissions (208) (208) (208) 0 Total general rates 27,544 28,934 28,471 463
TARGETED RATES Kaituna Catchment Control Scheme targeted rate 1,927 2,144 1,844 300 Rangitāiki-Tarawera Rivers Scheme targeted rate FOR4,428 4,779 3,830 949 Whakatāne-Tauranga Rivers Scheme targeted rate 2,293 2,162 1,820 341 Waioeka-Otara Rivers Scheme targeted rate 1,432 1,317 1,549 (232) Rangitāiki Drainage targeted rate 1,072 1,106 1,088 18 Passenger transport targeted rate 11,561 9,913 11,589 (1,677) Rotorua Lakes activity targeted rate DRAFT 3,068 3,275 2,930 345 Rotorua Air Action Plan Implementation targeted rate 422 426 278 149 Rotorua Air - Clean Heat Conversion targeted rate 543 956 585 371 Minor Rivers and Drainage Schemes targeted rate ADOPTION469 925 518 407 Civil Defence Emergency Management targeted rate 2,420 2,465 2,962 (497) Rates remissions (266) (266) (266) 0 Total targeted rates 29,369 29,202 28,727 475
Total rates 56,913 58,136 57,198 938
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43 COUNCIL FUNDING IMPACT STATEMENT The funding impact statement on the following pages are presented for compliance with the Local Government (Financial Reporting and Prudence) Regulations 2014. In accordance with the regulations, the information presented is incomplete and not prepared in compliance with generally accepted accounting practice. It should not be relied upon for any other purpose than compliance with the Local Government (Financial Reporting and Prudence) Regulations 2014. The key difference between the Funding Impact Statement and the Statement of Comprehensive Revenue and Expense are: depreciation and vested assets are excluded from all Funding Impact Statements.
2019/20 2020/21 Year 3 Annual Plan Long Term Plan Annual Plan Change $000 $000 $000 $000 SOURCES OF OPERATING FUNDING General rates, uniform annual general charges, rates penalties 27,544 28,934 28,471 463 Targeted rates 29,369 29,202 28,727 475 Subsidies and grants for operating purposes 18,317 17,607 19,488 (1,881) Fees and charges FOR11,566 12,352 11,114 1,238 Interest and dividends from investments 38,728 40,226 38,980 1,246 Local authorities fuel tax, fines, infringement fees and other receipts 2,152 2,140 2,929 (789) Total operating funding 127,676 130,461 129,709 752 APPLICATIONS OF OPERATING FUNDING DRAFT Payments to staff and suppliers 123,267 121,344 129,882 (8,538) Finance costs 2,493 6,372 3,258 3,114 Other operating funding applications 153 175 175 0 Total applications of operating funding ADOPTION125,913 127,891 133,315 (5,424) Surplus (deficit) of operating funding 1,763 2,570 (3,606) 6,176
SOURCES OF CAPITAL FUNDING Subsidies and grants for capital expenditure 4,715 1,400 3,404 (2,004) Development and financial contributions 0 0 0 0 Increase (decrease) in debt 50,332 23,608 48,101 (24,493) Gross proceeds from sale of assets 0 0 0 0 Lump sum contributions 0 0 0 0 Other dedicated capital funding 4,307 5,701 3,740 1,961 Total sources of capital funding 59,354 30,709 55,245 (24,536) Page 90 of 166
44 COUNCIL FUNDING IMPACT STATEMENT continued 2019/20 2020/21 Year 3 Annual Plan Long Term Plan Annual Plan Change $000 $000 $000 $000 APPLICATIONS OF CAPITAL FUNDING - to meet additional demand 0 0 0 0 - to improve the level of service 40,111 15,639 34,408 (18,769) - to replace existing assets 19,244 15,071 17,097 (2,026) Increase (decrease) in reserves 1,219 1,613 (451) 2,064 Increase (decrease) of investments 543 956 585 371 Total applications of capital funding 61,117 33,279 51,639 (18,360)
Surplus (deficit) of capital funding (1,763) (2,570) 3,606 (6,176) Funding balance FOR0 0 0 0 Note: This financial statement excludes: Depreciation and amortisation 8,138 8,799 9,130 331 DRAFT ADOPTION
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45 Rates Summary
TOTAL ANNUAL AVERAGE RATES The tables below set out the total annual rates for an average property for each district in the Bay of Plenty region. The 2020/21 total rates figure includes targeted rates for Rotorua Lake, Passenger Transport, Rotorua Air, Clean Heat, and Civil Defence Emergency Management but excludes targeted rates for Rivers and Drainage Schemes and the clean heat conversions. The amounts in the tables below include the Council’s Goods and Services Tax component.
Kawerau $ Tauranga $ Median property land value 106,000 Median property land value 340,000 Uniform annual general charge 125.82 Uniform annual general charge 125.82 General rate 24.73 General rate 70.68 2020/21 total rate 174.98 2020/21 total rate FOR386.87 Average weekly cost 3.36 Average weekly cost 7.44 Increase from previous year 7.69 Increase from previous year 19.52
Ōpōtiki $ Western Bay $ Median property land value 140,000DRAFTMedian property land value 455,000 Uniform annual general charge 125.82 Uniform annual general charge 125.82 General rate 27.83 General rate 90.45 2020/21 total rate 177.19 ADOPTION2020/21 total rate 252.76 Average weekly cost 3.41 Average weekly cost 4.86 Increase from previous year 7.31 Increase from previous year 6.33
Rotorua $ Whakatāne $ Median property land value 171,000 Median property land value 225,000 Uniform annual general charge 125.82 Uniform annual general charge 125.82 General rate 40.78 General rate 44.73 2020/21 total rate 344.54 2020/21 total rate 207.31 Average weekly cost 6.63 Average weekly cost 3.99 Decrease from previous year (38.60) Increase from previous year 9.47 Page 92 of 166
46 Your representatives Ngā reo kōrero
FOR DRAFT ADOPTION
From left: Jane Nees, Norm Bruning, Andrew von Dadelszen, Stuart Crosby, David Love, Paula Thompson, Stacey Rose Lyall Thurston, Kevin Winters, Doug Leeder, Bill Clark, Te Taru White, Matemoana McDonald and Toi Kai Rākau Iti..
Page 93 of 166 FOR DRAFT ADOPTION
For more information visit our website www.boprc.govt.nz, call 0800 884 880 or email [email protected] Page 94 of 166
APPENDIX 2
Toi Moana Trust Statement Of Intent 2020-21 - Draft for Adoption
Page 95 of 166
Page 96 of 166 DRAFT FOR ADOPTION
Page 97 of 166 P a g e | 2
Contents Introduction ...... 2 Objectives of the Trust ...... 2 Governance ...... 2 Committees and Policies ...... 3 Ratio of Shareholder Funds to Total Assets ...... 3 Accounting Policies ...... 3 Performance Targets ...... 3 Investment portfolio ...... 4 Governance ...... 4 Distribution to Unit Holders ...... 4 Distributions to Council ...... 4 Reporting to Shareholders ...... 5 No Surprises ...... 5 Other Matters ...... 5
Introduction The Local Government Act 2002 section 64(1) requires all Council-Controlled Organisations to annually prepare a Statement of Intent. The content of a Statement of Intent must adhere to the Local Government Act 2002 schedule 8.
Toi Moana Trust (the Trust) is a Council Controlled Organisation (CCO), itself being a subsidiary of the Bay of Plenty RegionalDRAFT Council (Council). This StatementFOR of Intent incorporates the nature, scope, activities, and performance targets of Toi Moana Trust. ADOPTION Objectives of the Trust The Toi Moana Trust was established with the primary objective of providing optimised long-term investment returns without the restraint of liquidity requirements to Council. Its secondary objective is to protect the capital value of its investment over the longer term.
Governance Quayside Holdings Limited has been appointed to be manager (‘the Manager’) of the Trust. The role of the Manager commenced on 1 July 2019. Quayside Holdings Limited is the parent of Quayside Securities Limited. Toi Moana Trust is a Portfolio Investment Entity (PIE) under the Quayside Investment Trusts, Trust Deed. Quayside Securities Limited is a corporate trustee of the assets of Quayside Investment Trusts.
Page 98 of 166 P a g e | 3
Council is responsible for annually assessing the performance of the investment portfolios to ensure performance is line with the Council’s required investment returns and within prescribed risk criteria.
Council’s Risk and Assurance Committee (or equivalent) is responsible for regularly reviewing the Investment Manager’s reports and ensuring that all parties overseeing, advising and managing the Council’s investments disclose any potential conflicts of interest.
The Manager is responsible for managing the investments in accordance with the guidelines and objectives in the Trust’s Statement of Investment Policy and Objectives (SIPO).
All parties must have requisite skills and must apply their skills, knowledge and experience in the best interests of the Trust and, be committed to high quality governance, and assist the Toi Moana Trust to meet its objectives and the requirements of this Statement of Intent.
The Trust can, as required, and the manager utilise third party brokers for transactions and a third party custodial for asset custody.
Committees and Policies
Toi Moana Trust comes under the delegated authorityFOR policy of the Quayside Group.
Ratio of Shareholder Funds to Total Assets
Toi Moana Trust Assets $45,000,000 Liabilities ($0)
The figures above are all DRAFTreflective of 1 July 2019.
Accounting Policies ADOPTION The financial statements are prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP). They comply with the New Zealand equivalents to International Financial Reporting Standards (NZ IFRS), and other applicable financial reporting standards as appropriate for profit-oriented entities. The financial statements also comply with International Financial Reporting Standards (IFRS), the Companies Act 1993, the Local Government Act 2002 and is a Tier 2 reporting entity under the Financial Markets Conduct Act 2013. A full set of accounting policies are available on request.
Performance Targets Performance targets are effective for the year represented by this Statement of Intent. Target measures will therefore be assessed in full on or within 90 days after 30 June 2021. The Group will
Page 99 of 166 P a g e | 4 keep Council informed of progress against performance targets on a no surprises basis during the year.
Investment portfolio
Objective Measure
Generate commercial returns across the 1. Annual net cash flow return of 5% Investment Portfolio.
Long term capital preservation over an initial period 2. Capital preservation of seven years
Investments must be screened from an ethical perspective and meet the following criteria. We must avoid investing in companies whose principal Investments must be in accordance with its business activity is: 3. Principles of Responsible Investment. The manufacture and sale of armaments The manufacture and sale of tobacco The promotion of gambling.
As an Organisation with a focus on environmental Investments must be in accordance with factors investments should be screened for their 4. its Principles of Socially Responsible impact on the environmental, social and governance Investment. considerations.
Governance
Objective Measure
Quarterly reporting on investment fund performance. Keep Council informedDRAFT on a no surprises FOR 1. basis, providing quality and timely Timely advice and support as required. information. Matters of urgency are reported to Council at the ADOPTIONearliest opportunity.
Meet Shareholders distribution 2. expectations as outlined in SOI or as Distributions paid to agreed values. otherwise agreed.
Distribution to Unit Holders Distributions to Council of 5%
Distributions to Council
Financial year 2020 2021 2022 Distribution $2,250,000 $2,250,000 $2,250,000
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The timing and amounts of distributions are to be mutually agreed.
Reporting to Shareholders Toi Moana Trust provides its unit holders with Interim and Annual Financials reports each year.
No Surprises Toi Moana Trust operates on a “no surprises” basis with its unit holders Council. The Manager will look to advise unit holders early of any material departure from the Statement of Intent at the soonest practical opportunity.
Other Matters There are no matters other than those set out above.
FOR
DRAFT ADOPTION
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Page 102 of 166
APPENDIX 3
Toi Moana Trust Statement of Investment Policy and Objectives 2020-21 - Draft for Adoption
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Page 104 of 166 DRAFT FOR ADOPTION
Page 105 of 166 Introduction
Purpose
The purpose of this Statement of Investment Policy and Objectives (‘SIPO’) is to describe Bay of Plenty Regional Council’s (the Council) investment policy and investment objectives for the Toi Moana Trust. It provides the policy framework for Council to effectively supervise, monitor and evaluate the management of the fund.
The Toi Moana fund was formed during the development of the Long Term Plan 2018-2028. It was recognised that the funds could be used for long term investment purposes to optimise returns to Council over the long run.
Effective date
This SIPO takes effect from 1 July 2020.
Review dates
The next review date for this SIPO is by 30 June 2021, or sooner if market conditions warrant it.
The review is to be endorsed by the Risk and Assurance Committee (or equivalent) and then approved by the Council. FOR Scope
This SIPO relates to Council’s Toi Moana fund.
Funds may be in held in the following forms:
‘Income’ assets; incorporating cash, term deposits, long term, liquid fixed interest investments and commercial paper ‘Growth’ assets, incorporating equity investments, directly and via managed funds, and other approved growthDRAFT assets The total fund as at 1 July 2020 is $45 million. Council expects the capital base to be maintained at $45 million (the minimum targeted balance of the Toi Moana reserve). The agreed investment term is seven years from 1 July 2019ADOPTION. In the Long Term Plan 2018-2028 Council has budgeted a net annual cash distribution from these funds of $2.25 million from 1 July 2019 to 30 June 2024.
Investment management structure
The fund is to be managed by the Investment Manager selected by Council who can best achieve the objectives of this SIPO. Council has appointed Quayside Holdings Limited as the Funds Investment Manager from 1 July 2019.
The Investment Manager is responsible for administering the Fund and selecting and managing its investments.
Page 106 of 166 Objectives
Investment objectives
Councils overarching strategic goals for the Toi Moana Fund are:
Council will ensure that investment returns are optimised within the risk management parameters specified in its Treasury Policy and SIPO Council will maintain a long-term perspective to ensure assets are protected for future generations and over the long run will consider the impact of inflation
Investment philosophy
As a responsible public authority, Council’s philosophy is that all investments must be prudent and the associated risks and returns balanced against the key aims of optimised return and capital preservation. Council’s Treasury framework is supportive of its inter-generational responsibilities to ratepayers. The primary focus is capital protection, followed by an appropriate return and acceptable liquidity.
The Investment Manager of the Toi Moana fund is empowered to develop investment strategies that best fit the objectives and risk tolerance of the fund. In developing and amending investment strategies the Investment Manager must consider the investment objectives of the Toi Moana Fund and apply a responsible investment framework filter when considering investments as outlined below.
Investment performance objectives
The objectives of this fund are capital preservation of the initial investment and a targeted cash return of 5.0% per annum.
All returns are assessed in NZD.
Investment time horizon
The investment guidelines are based on an investment time frame of seven years from 1 July 2019. Interim fluctuationsDRAFT should be viewed with appropriate FOR perspective. Investment risk The Investor, Council bears the investmentADOPTION risk, managing this risk is a key objective of the Investment Manager.
Socially responsible investments
Responsible investment, including environmental, social and governance considerations (ESG), is taken into account in the investment policies and procedures.
Responsible investing does not require ruling out opportunities but it does require decision- makers to incorporate ESG information into investment and borrowing decisions to identify and consider activities known to be socially, culturally and environmentally detrimental.
ESG factors are numerous and continually changing. Environmental factors include climate change, greenhouse gas emissions, resource depletion, waste and pollution, deforestation. Social factors include working conditions, local communities, conflict, health and safety and employee relations. Governance factors include executive pay, bribery and corruption, board diversity and structure, and tax strategy. The Investment Manager will incorporate ESG
Page 107 of 166 information in its investment decision-making process to ensure that all relevant factors are accounted for when assessing risk and return.
Our manager must screen potential investments from an ethical perspective to ensure they meet the following criteria as an important part of our due diligence process. We will look to avoid investing in in companies whose principal business activity is:
the manufacture and sale of armaments the manufacture and sale of tobacco the promotion of gambling
Where an investment is made into a managed fund, exchange traded fund, or collective investment vehicle the exclusion test shall be applied against the fund and any constituents representing greater than 5.0% of that fund. Policy setting and management
Council may approve/amend the policy parameters set in relation to investment activities. These changes will be minuted and incorporated into the SIPO and the dates of the changes noted. Changes will be made in consultation with the Investment Manager(s). Allocation of responsibilities
Council and staff responsibilities are outlined in the Treasury Policy and the Treasury Delegations manual. The Council may change Investment Managers from time to time as it sees fit at its sole discretion but notes the seven year investment horizon. Investment managers
The investment manager will:
Manage investments in accordance with the guidelines and objectives as outlined in the SIPO Ensure investment assets are appropriately diversified and conform with the council's time horizon and agreed risk/return profile Specify and advise on Strategic Asset Allocation and Tactical Asset Class Allocation Outline expectedDRAFT returns and risk, or volatility, FOR within the selected strategies Define the procedure to be used for reporting, reviewing and possible modification of strategies from time to timeADOPTION Risk tolerance
Council recognises that some risk must be assumed in order to achieve the long term investment objectives. Risk tolerance is affected by three factors:
Capacity to accept risk, Willingness to accept risk, and Required rate of return
Capacity to accept risk
Council’s capacity to accept risk is a function of its investment time horizon, prospective future contributions, current financial conditions, fund requirements and reserve facilities.
Page 108 of 166 Time horizon: This SIPO has been prepared on the basis that Council is expected to exist in perpetuity. The investment time horizon of Council is therefore long term. This increases capacity to accept risk.
Financial capacity: Councils current financial condition and level of funding requirements imply reasonable capacity to tolerate short to medium term volatility in the value of its investment portfolios. This increases capacity to accept risk.
Based on the combination of time horizon and financial circumstances, Council’s implied capacity to accept risk is assessed as Medium to High although its willingness to accept risk is lower.
Council’s willingness to accept risk is low. Where possible Council seeks to minimise volatility or risk. Notwithstanding this risk aversion, the Council acknowledge that investing solely in capital stable investments exposes the portfolio to the risk of inflation. This impacts the real value of investments. Council is willing to accept some risk in order to increase expected return in line with maintaining intergenerational equity.
Required rate of return
Careful consideration of cash flow requirements is essential to determine the required rate of return. To achieve the desired level of contributions to cash flow and liquidity needs, an assumed portfolio size of $45 million with a return of 5.0% will meet Council’s financial strategy.
Risk summary and selection of asset allocation
The table below summarises the Council’s level of risk tolerance as measured by the three risk factors: FOR
Risk Measure Level of risk Capacity to accept risk Medium to high Willingness to accept risk Low Required rate of return High
Council's Toi Moana reserve liquidity and risk requirements are detailed below: Reserve Funds used for Level of Liquidity needs DRAFTacceptable risk Toi Moana reserve Investment returns Low Low liquidity Over the long term, the average rateADOPTION of investment return is related to the level of risk and term of investments within the portfolio. The Toi Moana reserve requires low liquidity and therefore Council should receive a return premium because of the council’s willingness to commit to investments for a longer fixed period than the other reserves.
Based on Councils required return, capacity and willingness to accept risk, it is recommended that a conservative portfolio is adopted which is suitable for a Medium level of risk. Investment policy and implementation
General
In general terms when making decisions on investments the managers will have regard to the overall circumstances of the Portfolio and will comply with all applicable legislative requirements.
The investments will be managed with a view to ensuring sufficient liquidity to meet expected return requirements.
Page 109 of 166 Investment risk will be limited by diversification both within and between asset classes as determined appropriate by the investment manager.
Asset class guidelines
The Toi Moana Fund may consist of a mixture of growth and income assets.
The Investment Manager is empowered to make investments in the following asset classes and assets:
Cash – term deposits, cash on call, commercial paper NZ fixed interest – NZ Government, NZ Registered Banks, local authority and NZ State Owned Enterprise bonds, corporate bonds, fixed interest funds International fixed interest – via managed funds that are 100% hedged back into NZ Dollars Equities, either via managed funds or directly
Asset allocation
The Manager of the fund is empowered to develop asset allocations that best fit the objectives and risk tolerances of the fund.
Investment performance monitoring and reporting The goals of performance monitoring are to: FOR Assess the extent to which the investment objectives are being achieved Compare the performance against the performance of relevant market indices Allow the Risk and Assurance Committee (or equivalent) to continually assess the ability of the Council to meet the Treasury objectives
Quarterly reporting on investment fund performance, may include but is not limited to the following:
Current investments Cash flows received and paid during the period Performance of theDRAFT portfolio under the investment mandate and agreed objectives Materiality
Whether or not a breach of this SIPOADOPTION is material is determined at the discretion of the Manager. In considering whether or not a breach is material, the Manager will give consideration to:
The nature of the breach; The cause of the breach, including whether or not the breach is the result of sharp short- term market movements; and The size of the breach.
A breach of a range resulting from market movements, which is corrected within 5 business days, will not ordinarily be deemed material for limit break reporting purposes.
Monitoring Process
The Finance Team will monitor the investments for compliance on a quarterly basis, including reporting from the investment managers.
Page 110 of 166 Resolution and Reporting
Where the Chief Financial Officer becomes aware of a breach, the relevant investment or underlying fund manager will be instructed to remedy the breach immediately.
Where the Chief Financial Officer determines that a material breach has occurred and that breach is not resolved within 5 business days, the Manager will immediately report the limit break to Council, otherwise the Chief Financial Officer will report the limit break to Council each quarter.
Taxation The Fund is to reflect Council's status as a zero rated tax payer.
Withdrawals and reinvestments
Council relies on the investment income generated from the funds for cash flow requirements and the intent is to have investment income paid to the Council on the agreed dates, mutually agreed with the Investment Manager. This means that there are times when the Investment Manager will be able to reinvest investment income received, for example interest and dividends received and the term and nature of these reinvestments is at the discretion of the Investment Manager, subject to the Investment Income Payment dates as agreed. Council is committed to maintaining the capital base ofFOR the Toi Moana fund and no funds are forecast to be withdrawn from this reserve within the agreed investment time frame.
Liaison requirements
The Investment Manager is expected to be available for attendance at Council meetings at dates and times mutually agreed. It is expected that they will attend on a quarterly basis.
The Investment Manager must also be available for liaison with Council by telephone at any reasonable time. DRAFT
Review ADOPTION The Council will review this SIPO at least annually to determine whether the stated investment objectives are still relevant and it is feasible that they will be achieved. Short term changes in the financial markets should not require adjustments to the SIPO.
Page 111 of 166
Page 112 of 166 Report To: Regional Council
Meeting Date: 25 June 2020
Report From: Mat Taylor, General Manager, Corporate
Setting of Rates 2020/21
Executive Summary
This report is to recommend the setting of rates, due dates for the payment of rates and penalties for 2020/21 in accordance with sections 23, 24, 57 and 58 of the Local Government (Rating) Act 2002.
The report sets out; The general and targeted rates Council will set for 2020/21, and The dates of instalments and penalties. The appointment of the local district and city councils to collect the rates assessed by Bay of Plenty Regional Council in accordance with section 53 of the Local Government (Rating) Act 2002.
Recommendations
That the Regional Council:
1 Receives the report, Setting of Rates 2020/21;
2 Confirms that the rates for the financial year 1 July 2020 to 30 June 2021 are set and assessed in accordance with the Local Government (Rating) Act 2002.
3 Confirms that the significance of the decision has been assessed as LOW, and under Section 79 of the Local Government Act 2002 (LGA) confirms the written record of the manner in which section 77 and section 78 matters have been addressed.
4 Notes that Council did not consult on the Annual Plan 2020/21 as the changes were not considered to be significant or material departures from LTP 2018-2028.
5 Confirms that the amounts of the rate specified in the rate tables of the resolution, for the financial year commencing 1 July 2020 to 30 June 2021, includes the Council’s Goods and Services Tax component.
Page 113 of 166 Setting of Rates 2020/21
6 Sets a general rate based on land value, calculated as a rate in the dollar of the rateable land value of each rateable rating unit in the region. The rate in the dollar is different according to the location of the land within each district and city council as land values are equalised.
General Rates Land Value $13,952,321
Rates Expressed as cents per Constituent Authority dollars of rateable land value Kawerau 0.026830 Ōpōtiki 0.022861 Rotorua (Pt) 0.027428 Taupō (Pt) 0.022861 Tauranga 0.023906 Western Bay of Plenty 0.022861 Whakatāne 0.022861 Offshore Islands 0.147721
7 Sets a uniform annual general charge as a fixed amount per rating unit on all rateable land in the region.
Uniform Annual General $19,028,656 Charge Fixed amount per rating unit $144.69
8 Sets targeted rates for Kaituna Catchment Control Scheme. These rates are set differentially for all rateable land situated in the Kaituna Catchment Control Scheme within the Tauranga, Western Bay of Plenty and Rotorua constituent districts.
The two targeted rates are set as follows; (i) Where the land is situated and calculated using the area of land within the rating unit, (ii) Where the land is situated and calculated using the extent of provision of service to the rating unit.
2 Page 114 of 166 Setting of Rates 2020/21
Kaituna Catchment Control Scheme targeted rates Rate per Site Revenue Category hectare component sought $ $ $ A1P 212.84 212.84 421,681 A2P 170.27 191.56 25,598 A3P 127.71 170.27 21,694 A4P 85.14 148.99 23,641 A1 170.27 159.63 105,303 A2 138.35 138.35 49,532 A3 106.42 138.35 49,733 A4 74.50 138.35 29,685 A5 63.85 138.35 85,838 A6 53.21 117.06 20,537 A7 38.31 106.42 19,662 A8 25.54 N/A 2,823 A9 8.51 N/A 739 A10 4.26 N/A 705 A11 2.13 N/A 518 B1 25.54 63.85 21,928 B2 19.16 53.21 6,866 B3 10.64 42.57 19,926 B4 6.39 31.93 35,077 B5 4.26 31.93 58,404 C1 6.39 31.93 6,383 C2 3.72 31.93 106,675 C3 2.55 31.93 29,557 C4 2.13 N/A 4,430 C6R 1.28 N/A 1,380 C8 0.85 21.28 6,082 C5 2.55 21.28 110,426 C6 1.49 17.03 16,695 C7 0.85 63.85 2,355 C9 0.64 17.03 4,242 R01 42.57 85.14 21,952 R02 N/A 63.85 66,763 R03 31.93 26.61 649,281 TP1 21.28 31.93 94,164 Total 2,120,275 N/A = Not Applicable
9 Sets a targeted rate for the Rangitāiki-Tarawera Rivers Scheme. The rate is set differentially for all rateable land situated in the Rangitāiki-Tarawera Rivers Scheme catchment within the Whakatāne, Kawerau, Rotorua and Taupō constituent districts.
The targeted rate is set as follows;
(i) Where the land is situated and calculated using the area of land within the rating unit.
3 Page 115 of 166 Setting of Rates 2020/21
Rangitāiki-Tarawera Rivers Scheme targeted rates
Rate per Revenue Category hectare sought $ $
A1 156.56 1,260,032 A2 110.90 174,002 A3 84.80 155,069 A4 65.23 74,714 A5 55.45 381,623 A6 19.57 3,236 B1 97.85 207,499 B2 78.28 37,995 B3 58.71 41,663 B4 45.66 391,822 B5 32.62 52,282 B6 11.74 435 B7 9.13 1,641 C1 8.48 66,932 C2 5.87 303,510 C3 1.96 185,590 C4 1.30 81,809 C5 0.98 21,030 U1 4,990.40 199,952 U2 4,696.85 266,264 U3 848.04 21,276 U4 554.49 436,349 U5 391.40 39,864 Total 4,404,589
10 Sets targeted rates for Whakatāne-Tauranga Rivers Scheme. These rates are set differentially for all rateable land situated in the Whakatāne-Tauranga Rivers Scheme catchment within the Whakatāne constituent district.
The two targeted rates are set as follows;
(i) Where the land is situated and calculated using the area of land within the rating unit, (ii) Where the land is situated and calculated using the extent of provision of service to the rating unit.
4 Page 116 of 166 Setting of Rates 2020/21
Whakatāne-Tauranga Rivers Scheme targeted rates
Rate per Site Revenue Category hectare component sought $ $ $
A1 163.10 163.10 120,530 A2 138.01 138.01 54,816 A3 112.92 119.19 180,139 A4 94.10 106.64 290,490 A5 69.00 N/A 16,664 A6 50.19 87.82 21,810 A7 37.64 75.28 28,077 A8 25.09 69.00 61,058 A9 12.55 N/A 1,620 B1 56.46 N/A 125,033 B2 31.37 56.46 89,046 B3 25.09 37.64 48,378 B4 18.82 31.37 8,442 B5 2.51 N/A 1,134 C1 7.53 62.73 33,937 C2 5.02 25.09 49,801 C3 3.76 25.09 35,551 C4 2.51 6.27 5,898 C5 1.25 6.27 30,450 U1 564.58 169.37 453,278 U2 414.03 131.74 131,217 U3 219.56 87.82 204,939 U4 138.01 75.28 101,053 U5 12.55 N/A 8 Total 2,093,369 N/A = Not Applicable
11 Sets targeted rates for the Waioeka-Otara Rivers Scheme. The rates are set differentially for all rateable land situated in the Waioeka-Otara Rivers Scheme catchment within the Ōpōtiki constituent district.
The two targeted rates are set as follows;
(i) Where the land is situated and calculated using the area of land within the rating unit, (ii) Where the land is situated and calculated using the extent of provision of service to the rating unit.
5 Page 117 of 166 Setting of Rates 2020/21
Waioeka-Otara Rivers Scheme targeted rates
Rate per Site Revenue Category hectare component sought $ $ $
A1A 422.06 486.99 25,108 A2 227.26 357.13 30,957 A2A 324.66 405.82 14,669 A3 194.80 292.19 146,963 A3A 259.73 357.13 6,659 A4 162.33 227.26 87,586 A4A 211.03 292.19 2,762 A5 146.10 227.26 67,410 A6 113.63 227.26 1,034 A7 97.40 227.26 11,736 A8 81.16 227.26 105,927 B1 64.93 N/A 17,512 B2 9.74 N/A 166 C1 16.23 194.80 48,145 C2 9.74 194.80 16,615 C3 6.49 162.33 15,977 C4 4.87 64.93 23,189 C5 3.25 64.93 3,603 C6 1.30 64.93 11,643 R 3.25 N/A 308 U1AC 1,947.96 1,428.50 56,274 U1AR 973.98 714.25 81,386 U1C 1,558.37 1,168.77 172,924 U1R 779.18 584.39 494,214 U2AC 1,428.50 1,038.91 18,031 U2AR 714.25 519.46 61,087 U2C 1,038.91 909.05 11,765 U2R 519.46 454.52 140,101 U3R 129.86 259.73 107,589 Total 1,781,340 N/A = Not Applicable
12 Sets a targeted rate for the Rangitāiki Drainage Rating Area. The rate is set differentially for all rateable land situated in the defined Rangitāiki Drainage Rating Area situated on the Rangitāiki Plains within the Whakatāne constituent district.
The targeted rate is set as follows;
(i) Where the land is situated and calculated using the area of land within the rating unit.
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Rangitāiki Drainage targeted rates
Rate per Revenue Category hectare sought $ $
A 65.69 508,133 B 59.12 65,724 C 55.18 79,613 D 47.95 292,787 E 39.41 107,576 F 29.56 73,077 G 22.33 83,400 H 16.42 1,830 I 7.88 6,065 U1 131.38 29,050 U2 65.69 4,004 Total 1,251,259
13 Sets a targeted rate for Passenger Transport. The rate is set differentially as an amount per rating unit on all rateable properties within the defined boundaries of Tauranga City, Urban Rotorua, Western Bay District and Whakatāne District. The passenger transport targeted rate is set as follows;
(i) Where the rateable unit is situated.
Passenger Transport targeted rate Rate per rating unit Revenue sought Category $ $ Tauranga City 193.91 11,406,566 Rotorua Urban 59.27 1,312,260 Western Bay District 17.47 398,367 Whakatāne District 13.98 210,578 Total 13,327,771
14 Sets a targeted rate for the Rotorua Lakes Programme. The rate is set differentially as an amount per rating unit on all rateable properties within the Rotorua constituent district. The Rotorua Lakes programme targeted rate is set as follows;
(i) Area of land within the rating unit.
Rotorua Lakes Programme targeted rate Rate per rating unit Revenue sought Category - All Properties $ $ 0 - 1.9999ha 103.87 2,661,759 2 - 9.9999ha 220.75 156,337 10ha and over 722.32 551,220 Total 3,369,316
7 Page 119 of 166 Setting of Rates 2020/21
15 Sets a targeted rate for Rotorua Air Action Plan Implementation. The rate is set differentially as a fixed amount per rating unit on all rateable properties within the defined boundary of Urban Rotorua. The Council sets the Rotorua Air Action Plan Implementation targeted rate as follows;
(i) Where the rateable unit is situated.
Rotorua Air Action Plan Implementation targeted rate Rate per rating unit Revenue sought Category $ $ Rotorua Urban 14.43 319,465
16 Sets a targeted rate for Civil Defence Emergency Management. The rate is set differentially as an amount per rating unit on all rateable properties within the Kawerau, Ōpōtiki, Rotorua, Tauranga, Western Bay of Plenty and Whakatāne constituent districts. The Civil Defence Emergency Management targeted rate is set as follows;
(i) Where the rateable unit is situated.
Civil Defence Emergency Management targeted rate Rate per rating unit Revenue sought Category - All Properties $ $ Kawerau 28.10 81,563 Ōpōtiki 27.07 134,902 Rotorua 27.06 733,203 Tauranga 25.02 1,471,571 Western Bay of Plenty 24.49 558,556 Whakatāne 28.29 426,150 Total 3,405,945
17 Sets a targeted rate for Rotorua Air Clean Heat Conversion. The rate is set differentially as an amount per rating unit within the defined boundary of Rotorua Air shed Area with liability to Council. The Council sets the Rotorua Air Clean Heat Conversion targeted rate as follows;
(i) Where the rateable unit is situated, and calculated based on the extent of loans provided by Council under the Clean Heat Conversion scheme.
8 Page 120 of 166 Setting of Rates 2020/21
Rotorua Air Clean Heat Conversion targeted Rotoruarates 2020/21 Air Clean Heat Conversion targeted rate
Rate $ per Revenue Category rating unit sought $
CH001 680.00 48,280 CH002 660.00 17,820 CH003 640.00 21,120 CH004 620.00 17,980 CH005 600.00 16,800 CH006 580.00 10,440 CH007 560.00 8,960 CH008 540.00 13,500 CH009 520.00 3,120 CH010 500.00 3,000 CH011 480.00 3,840 CH1 460.00 133,860 CH2 455.00 19,565 CH3 450.00 18,900 CH4 445.00 8,455 CH5 440.00 21,560 CH6 435.00 13,920 CH7 430.00 19,780 CH8 425.01 11,900 CH9 420.00 10,920 CH10 415.00 12,865 CH11 410.00 8,200 CH12 405.00 8,100 CH13 400.00 7,600 CH14 395.00 15,405 CH15 390.00 11,310 CH16 385.00 15,015 CH17 379.99 3,800 CH18 375.00 8,250 CH19 370.00 8,510 CH20 365.00 5,840 CH21 360.00 6,480 CH22 355.01 2,840 CH23 350.00 4,900 CH24 345.00 8,970 CH25 340.00 4,420 CH26 335.00 5,025 CH27 330.00 9,240 CH28 325.00 12,350 CH29 320.00 4,480 CH30 315.00 4,095 CH31 310.01 4,340 CH32 305.00 1,830 CH33 300.00 4,500 CH34 295.00 5,310 CH35 290.00 6,090 CH36 285.00 3,135 CH37 280.00 4,200 CH38 275.00 4,400 CH39 270.00 8,640
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CH40 265.00 1,590 CH41 260.00 3,380 CH42 255.00 3,060 CH43 250.00 3,000 CH44 245.00 2,940 CH45 240.01 2,400 CH46 235.00 2,585 CH47 230.00 2,300 CH48 225.00 18,000 Total 673,115
18 Sets targeted rates for the minor rivers and drainage scheme. The rates are set differentially for all rateable land situated in the defined communal pumped drainage and defined minor river and drainage schemes areas. The Council sets one targeted rate for each scheme as follows;
(i) Where the land is situated and calculated using the area of land within the rating unit.
Waiotahi River District targeted rates
Rate per Revenue Category hectare sought $ $
A 109.20 11,860 B 87.36 14,206 C 65.52 12,526 D 36.40 1,850 E 21.84 1,657 F 10.92 2,061 Total 44,160
Huntress Creek Drainage District targeted rates
Rate per Revenue Category hectare sought $ $
A 82.20 17,316 B 63.02 5,000 C 41.10 2,983 D 27.40 1,460 E 19.18 628 F 8.22 2,743 Total 30,130
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Waiotahi Drainage District targeted rates
Rate per Revenue Category hectare sought $ $
A 50.73 4,332 B 42.28 8,786 C 33.82 2,136 D 25.37 1,140 E 16.91 72 F 8.46 1,934 Total 18,400
Awaiti West Pumped Drainage Scheme targeted rate
Rate per Revenue Category hectare sought $ $
A 406.08 5,116 B 186.80 27,495 C 81.22 16,028 D 40.61 1,961 Total 50,600
Omeheu Adjunct Communal Pumped Drainage Scheme targeted rates
Rate per Revenue Category hectare sought $ $
A 86.32 888 B 64.74 5,189 C 47.48 2,644 D 25.90 2,262 E 12.95 702 F 4.32 101 URBAN 228.74 9,834 Total 21,620
Lawrence Communal Pumped Drainage Scheme rates
Rate per Revenue Category hectare sought $ $
A 624.56 17,612 B 499.65 2,299 C 312.28 2,211 D 156.14 2,258 Total targeted rates 24,380
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Murray's Communal Pumped Drainage Scheme rates
Rate per Revenue Category hectare sought $ $
A 100.10 15,273 B 72.07 1,186 C 64.06 3,069 D 28.03 1,517 Total 21,045
19 Sets targeted rates uniformly for all rateable land situated in the defined drainage and defined minor river and drainage schemes areas. The rates are set as follows;
(i) Where the land is situated and calculated using the land area of each scheme.
Minor Drainage Schemes targeted uniform rates Rate per Revenue Category hectare sought $ $ Angle Road 50.11 11,500 Awakeri 18.94 5,405 Baird-Miller 37.60 5,175 Foubister 97.53 10,235 Gordon 195.24 19,205 Greigs Road 78.96 56,350 Halls 107.33 25,990 Riverslea Road 568.58 17,480 Kuhanui 69.31 5,750 Longview-Richlands 99.20 11,500 Martin 44.74 5,980 Massey 14.29 6,095 Mexted-Withy 19.84 5,520 Omeheu East 61.16 25,645 Pedersen - Topp 50.29 5,750 Platts 89.59 33,005 Reynolds 74.16 9,545 Robins Road 219.03 40,940 Travurzas 67.37 13,340 Wylds 115.10 21,620 Poplar Lane 220.85 12,420 Awaiti East 258.24 36,800 Total 385,250
20 Sets the following instalment due dates for all rates other than the Minor River and Drainage Scheme rates as set out below. The due dates for each territorial constituent area are for an equal amount of the rates.
12 Page 124 of 166 Setting of Rates 2020/21
(i) The respective instalment due dates are as follows;
Kawerau District Instalment One 04 September 2020 Instalment Two 20 November 2020 Instalment Three 26 February 2021 Instalment Four 21 May 2021 Ōpōtiki District Instalment One 21 August 2020 Instalment Two 20 November 2020 Instalment Three 26 February 2021 Instalment Four 21 May 2021 Rotorua District Instalment One 20 August 2020 Instalment Two 20 November 2020 Instalment Three 20 February 2021 Instalment Four 20 May 2021 Taupō District Instalment One 20 August 2020 Instalment Two 20 November 2020 Instalment Three 22 February 2021 Instalment Four 20 May 2021 Tauranga City District Instalment One 31 August 2020 Instalment Two 28 February 2021 Western Bay of Plenty District Instalment One 25 September 2020 Instalment Two 26 February 2021 Whakatāne District Instalment One 21 August 2020 Instalment Two 20 November 2020 Instalment Three 26 February 2021 Instalment Four 21 May 2021
21 Sets the following penalties regime for all rates other than the Minor River and Drainage Scheme rates;
(i) Pursuant to sections 57 and 58(1)(a) of the Local Government (Rating) Act 2002, with respect to rates assessed in the 2020/21 year, a penalty of 10% for all areas other than the Kawerau District and 5% for the Kawerau District will be added to the amount of any instalment that has been assessed after 1 July 2020 and which is unpaid after the relevant due date set out in section 20. The penalty will be added on the respective instalment penalty date shown in (ii). (ii) The respective instalment penalty dates are as follows;
13 Page 125 of 166 Setting of Rates 2020/21
Kawerau District Instalment One 07 September 2020 Instalment Two 23 November 2020 Instalment Three 01 March 2021 Instalment Four 24 May 2021 Ōpōtiki District Instalment One 26 August 2020 Instalment Two 25 November 2020 Instalment Three 03 March 2021 Instalment Four 26 May 2021 Rotorua District Instalment One 21 August 2020 Instalment Two 21 November 2020 Instalment Three 21 February 2021 Instalment Four 21 May 2021 Taupō District Instalment One 27 August 2020 Instalment Two 27 November 2020 Instalment Three 01 March 2021 Instalment Four 27 May 2021 Tauranga City District Instalment One 09 September 2020 Instalment Two 09 March 2021 Western Bay of Plenty District Instalment One 23 October 2020 Instalment Two 26 March 2021 Whakatāne District Instalment One 26 August 2020 Instalment Two 25 November 2020 Instalment Three 03 March 2021 Instalment Four 26 May 2021
(iii) Pursuant to sections 57 and 58(1)(b) of the Local Government (Rating) Act 2002, with respect to rates assessed before 1 July 2020, a penalty of 10% for all areas in the table below other than the Kawerau District and 5% for the Kawerau District will be added to any rates unpaid on 2 July 2020. The penalty will be added on the date shown below.
The respective additional penalty dates are as follows;
District Penalty assessed date Penalty application date Kawerau District 2 July 2020 5 August 2020 Rotorua District 2 July 2020 17 July 2020 Taupō District 2 July 2020 8 July 2020 Western Bay of Plenty District 2 July 2020 2 July 2020 Whakatāne District 2 July 2020 1 October 2020
(iv) Pursuant to sections 57 and 58(1)(c) of the Local Government (Rating) Act 2002, with respect to rates assessed in previous financial years, a further penalty of 10% for Rotorua District and Western Bay of Plenty District, and 5% for the Kawerau District will be added on any rates to which a penalty has been added under 21(iii) if the rates
14 Page 126 of 166 Setting of Rates 2020/21
remain unpaid six months after the previous penalty was added.
The respective additional penalty dates are as follows;
District Penalty application date Kawerau District 9 February 2021 Rotorua District 18 January 2021 Western Bay of Plenty District 2 January 2021
22 Set that Minor River and Drainage Scheme rates shall be payable at the office of the Bay of Plenty Regional Council, Quay Street, P O Box 364, Whakatāne in one instalment on or by 20 January 2021.
23 Set the following penalties regime for the Minor River and Drainage Scheme rates:
(i) Pursuant to sections 57 and 58(1)(a) of the Local Government (Rating) Act 2002, with respect to the Minor River and Drainage Scheme rates assessed in the 2020/21 year, a penalty of 10% will be added to the amount that remains unpaid after the date stated above, on 20 February 2021.
(ii) Pursuant to sections 57 and 58(1)(b) of the Local Government (Rating) Act 2002, with respect to Minor River and Drainage Scheme rates assessed before 1 July 2020, a penalty of 10% will be added on any rates that remain unpaid on 2 July 2020. The penalty will be added on 2 July 2020.
(iii) Pursuant to sections 57 and 58(1)(c) of the Local Government (Rating) Act 2002, with respect to Minor River and Drainage Scheme rates, a further penalty of 10% will be added on any rates to which a penalty has been added under (ii) if the rates remain unpaid six months after the previous penalty was added. The penalty will be added on 20 February 2021.
24 Pursuant to section 27(7) of the Local Government (Rating) Act 2002, the Council delegates’ authority to the constituent district and city councils of the Bay of Plenty region to keep and maintain the rating information database for those areas on its behalf.
25 Appoints in accordance with section 53 of the Local Government (Rating) Act 2002 the constituent district and city councils of the Bay of Plenty region, i.e. Kawerau District Council, Ōpōtiki District Council, Rotorua District Council, Taupō District Council, Tauranga City Council, Western Bay of Plenty District Council, Whakatāne District Council, to collect the rates assessed by Bay of Plenty Regional Council, excluding Minor River and Drainage Scheme targeted rates.
26 Agrees that in respect of the Minor River and Drainage Scheme targeted rates which are collected directly by the Bay of Plenty Regional Council, where the total amount of rates payable, in respect of any property is $9.99 or less, pursuant to Section 54 of the Local Government (Rating) Act 2002, the rates payable in
15 Page 127 of 166 Setting of Rates 2020/21
respect of the property will not be collected.
1 Introduction
The Bay of Plenty Regional Council (Council) has developed the Annual Plan 2020/21 following a series of Council workshops and meetings in late 2019 and the first half of 2020.
The rates set out in this paper are in accordance with the Annual Plan 2020/21 Revenue and Financing Policy and Funding Impact Statement, as required by section 23 of the Local Government (Rating) Act 2002.
A resolution is required to set the rates, due dates and penalties regime for the 2020/21 financial year. The due dates and penalty dates reflect the dates proposed by each of the territorial authorities that collect rates on our behalf.
In the event that one or more of the territorial authorities adopts a different due date or penalty date, then Council may be required to revoke the rates resolution and adopt an updated rates resolution.
2 Analysis of Options
Council participated in a comprehensive series of workshops and meetings as part of the development of the Annual Plan 2020/21. A number of options and scenarios were considered on different components of the draft Annual Plan 2020/21 during the course of this process. Further options on a number of key matters were considered as part of the deliberations process. 3 Community Views
At its meeting on the 24 March 2020 Council decided that, pursuant to section 95 2A of the Local Government Act (2002), the variances from Year 3 of the Long Term Plan 2018-2028 were not significant or material and a full special consultative procedure was not required.
In lieu of consulting on the Annual Plan, Council decided to release an Information Document, which was published on 15 April 2020 and which set out the main changes that were planned compared to what was set out in the Long Term Plan 2018-2028.
Council deliberated and provided final direction on the Annual Plan 2020/21 on 2 June 2020, this included considering public feedback on the Information Document and updated staff advice, including the consequential impact of COVID-19.
4 Budget Implications
4.1 Current Year Budget
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This work is being undertaken within the current budget for the Finance Activity in the Long Term Plan 2018-2028
4.2 Future Budget Implications
Future implications have been included in the Annual Plan 2020/21. 5 Community Outcomes
This proposal directly contributes to all Community Outcomes in the Council’s Long Term Plan 2018-2028.
Debbie Hyland Finance & Transport Operations Manager for General Manager, Corporate
17 June 2020 Click here to enter text.
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Page 130 of 166 Report To: Regional Council
Meeting Date: 25 June 2020
Report From: Namouta Poutasi, General Manager, Strategy & Science
Recommendations to Council from Strategy and Policy Committee and Public Transport Committee
Executive Summary
This report outlines the following recommendations from Committees to Council:
Strategy and Policy Committee meeting held on 5 May 2020 for Council to consider in relation to the SmartGrowth Leadership Group Agreement and Memorandum of Understanding;
Public Transport Committee meeting held 22 May 2020 to endorse the strategic approach of the Te Papa Indicative Business Case (IBC), subject to alignment with the Urban Form and Transport Initiative final report.
It is noted that the recommendation seeking SmartGrowth Leadership Group (SLG) retain the ability for partners to appoint alternates and for the Independent Chair position be a non- voting position was considered at the SLG meeting on 20 May 2020 and is discussed further in this report under section 1.1.
Recommendations
That the Regional Council:
1 Receives the report, Recommendations to Council from Strategy and Policy Committee and Public Transport Committee;
Recommendations from Strategy and Policy Committee:
2 Adopt the updated SmartGrowth Leadership Group Agreement and associated Terms of Reference attached to this report as Appendix 1.
3 Authorise the Bay of Plenty Regional Council Chair to sign the SmartGrowth Leadership Group Agreement.
4 Approve in principle the Memorandum of Understanding between the SmartGrowth partners and Central Government, as revised (refer Tabled Document 1).
Page 131 of 166 Recommendations to Council from Strategy and Policy Committee and Public Transport Committee
5 Authorise the Bay of Plenty Regional Council Chair to approve any minor amendments to the Memorandum of Understanding if sought by Central Government and to sign the Memorandum of Understanding once it has been agreed to by Central Government.
6 Note that a key benefit of these agreements are working in partnership with Central Government which includes securing appropriate infrastructure funding for the Western Bay of Plenty and noting since COVID-19, Central Government has introduced and supported further funding and financing tools to support job creation and growth in the region. It is expected these tools will be key to the agreed investment and funding principles outlined in these agreements.
7 Notes the recommendation from the Strategy and Policy Committee that SmartGrowth councils’ retain the ability to appoint alternate members and that the Independent Chair position be a non-voting position.
Recommendations from Public Transport Committee:
8 Endorses the strategic approach of the Te Papa Indicative Business Case (IBC) and recommend endorsement for Regional Council approval, subject to alignment with the Urban Form and Transport Initiative final report;
9 Notes that investment timing, costs and cost sharing are subject to further investigations and agreement between the project partners and will come before Council for approvals as the programme progresses
1 Background
Strategy and Policy Committee Meeting on 5 May 2020
Agenda 5 May 2020, Minutes 5 May 2020, SLG Agreement MoU - Tabled item 1 - 5 May 2020
At its meeting on 5 May 2020, the Strategy and Policy Committee considered the report, ‘SmartGrowth Leadership Group Agreement and Memorandum of Understanding’.
The report advised that Central Government wish to establish an urban growth partnership with SmartGrowth to deliver on the Government’s Urban Growth Agenda and in particular the joint spatial plan component, an agreed plan among the sub- regional partners and the Crown.
The most appropriate vehicle for this partnership to occur was for Central Government to join the existing SmartGrowth Leadership Group and to also have involvement at management and technical levels, a similar approach to that in the Waikato through the Future Proof partnership.
Two key documents enable this partnership to occur:
An update to the SmartGrowth Leadership Group Joint Committee Agreement which allows the Crown to join the Committee (Appendix 1).
2 Page 132 of 166 Recommendations to Council from Strategy and Policy Committee and Public Transport Committee
The preparation of a Memorandum of Understanding between all parties (Appendix 2). At its 18 March meeting the SmartGrowth Leadership Group approved the amended Joint Committee Agreement and Memorandum of Understanding to be distributed to all partners to adopt and agree in principle, which was considered at the May Strategy and Policy Committee Meeting.
1.1 Strategy and Policy Committee Recommendations
On 5 May 2020 the Strategy and Policy Committee resolved to recommend to Council the adoption of the SmartGrowth Leadership Group Joint Committee Agreement and Memorandum of Understanding, with the following additions and amendments for Council’s consideration:
1. Track change amendments to the Memorandum of Understanding, (refer Appendix 2 of this report).
2. Additional recommendation to note the key benefits of the agreements, as outlined above under Recommendation 6.
3. Additional recommendation to the SmartGrowth partners that councils retain the ability to appoint alternate members when appointed members are not available, to ensure the councils’ representation remains consistent, and for the Independent Chair position to be a non-voting position, to remain independent and impartial, as outlined above under Recommendation 7.
The additional recommendations were considered at the SLG meeting on 20 May 2020. In regard point 3 above, it was agreed that under Schedule 7, clause 24 the Independent Chair has the ability to vote, while the matter of appointing alternate members was left to lie on the table and for the Independent Chair to report back to the next SLG meeting proposing a resolution to the matter. A verbal update will be provided at this meeting.
Public Transport Committee on 22 May 2020
Agenda - 22 May 2020, Minutes - 22 May 2020
At its meeting on 22 May 2020, the Public Transport Committee considered the report on the Te Papa Indicative Business Case (IBC).
The purpose of the Te Papa IBC is to establish the strategic direction for delivering a transport system that will support the intensification of the Te Papa peninsula. It provides the evidence-base for central government investment in planned transport infrastructure. This includes a long-term vision for more frequent public transport along the main movement corridor (Cameron Road) connecting with wider growth areas, and broader modal choices such as walking and cycling. This combined approach is key in tying together an integrated multi-agency investment programme to support and catalyse growth.
The project sits at a mid-point within the Waka Kotahi-NZTA business case development framework and provides strategic direction and indicative funding envelopes for inclusion within Long Term Plans and the 2021 Regional Land Transport Plan (currently in review stage). Detailed design and more precise funding arrangements will be developed in subsequent business cases.
3 Page 133 of 166 Recommendations to Council from Strategy and Policy Committee and Public Transport Committee
The IBC was approved by Tauranga City Council on 5 May 2020 and is intended to be presented to the Waka Kotahi - NZTA Board for endorsement in August 2020.
Endorsement by Council is part of this partnership process.
2 Implications for Māori
Strategy and Policy Committee Recommendations: Tangata whenua are members of the SmartGrowth partnership. The amended SmartGrowth Leadership Group Agreement and Memorandum of Understanding do not change this relationship.
As noted above, tangata whenua will need to nominate their representatives for the SmartGrowth Leadership Group.
Public Transport Committee Recommendations: There are no specific implications for Māori in relation to this report. Implications from specific components within the Te Papa IBC are expected to be identified and addressed during detailed investigations for specific multi-modal and public transport components.
3 Budget Implications
3.1 Current Year Budget
The recommendations in this report have no effect on the current year (2019/20) budget for SmartGrowth.
3.2 Future Budget Implications
The recommendations in this report are unlikely to have implications for the future governance budget for SmartGrowth. The implications of implementing the Urban Form and Transport Initiative (UFTI) and joint spatial plan for SmartGrowth are separate matters that will be brought back to the partner councils when those costs are known.
4 Community Outcomes
This item directly contributes to the A Vibrant Region Community Outcome in the Council’s Long Term Plan 2018-2028.
Yvonne Tatton Governance Manager for General Manager, Strategy & Science
17 June 2020 Click here to enter text.
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APPENDIX 1
SmartGrowth Leadership Group Agreement May 2020
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Attachment 1
SmartGrowth Leadership Group (Joint Committee) Agreement
1. Purpose
This Agreement is made pursuant to Clause 30A, Schedule 7 of the Local Government Act 2002 (“LGA 2002”). The purpose is to provide for a Joint Committee of Tauranga City Council, Western Bay of Plenty District Council, the Bay of Plenty Regional Council, and tāngata whenua1 to undertake and implement strategic spatial planning across the western Bay of Plenty sub-region2 in accordance with the SmartGrowth Strategy, outcomes from the Urban Form and Transport Initiative and the joint spatial plan as agreed between the Crown and the SmartGrowth partners. This joint committee is known as the ‘SmartGrowth Leadership Group’.
The Leadership Group has additional public body representation from the New Zealand Transport Agency (NZTA) through its Director of Regional Relationships and the Bay of Plenty District Health Board (DHB). The NZTA and DHB are non-voting members but have speaking rights.
The SmartGrowth Leadership Group has expanded membership for the Urban Growth Management Partnership and associated programmes to include Central Government.
This Agreement focuses on the Leadership Group, including its membership and delegations. Any additional Memoranda of Understanding that are completed will be in addition, and complementary to, this Agreement.
The joint SmartGrowth Leadership Group has been established to focus on strategic spatial planning, including the four well-beings (social, economic, environmental, cultural), and growth management in the western Bay of Plenty sub-region. This will occur through developing and implementing plans and strategies and recommending these to the SmartGrowth partners, as well as monitoring and undertaking reviews in accordance with the delegations set out in section 4 and the principles set out in the Terms of Reference attached to this Agreement as Appendix 1.
The Leadership Group is a formal joint committee pursuant to the Local Government Act 2002 (Clause 30 and 30A, Schedule 7). The Leadership Group will not be discharged at the point of the next election
1 This is a reference to western Bay of Plenty sub-region tāngata whenua. 2 The ‘sub-region’ refers to the territorial areas of Tauranga City Council and Western Bay of Plenty District Council. 1
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period (in line with Clause 30(7) of Schedule 7, LGA 2002).
2. Membership
The SmartGrowth Leadership Group is to be comprised of three elected member representatives as appointed by the local authorities, including the Mayors and Regional Council Chairperson, and four tāngata whenua representatives to be nominated by Iwi or through any other agreed mechanism. The SmartGrowth Leadership Group may at its discretion, appoint an additional tāngata whenua representative.
In addition, up to three Ministers of the Crown who will have voting capacity, are to be appointed by the Crown. Additional Ministers, if and when relevant and required, can be appointed by the SmartGrowth Leadership Group in a non-voting capacity.
An Independent Chairperson (non-elected member) is to be appointed by the SmartGrowth Leadership Group to chair the Committee. The Independent Chairperson has speaking rights and voting capacity. A Deputy Chairperson is also to be appointed by the SmartGrowth Leadership Group at the beginning of each triennium, from the existing voting membership.
The NZTA is to be represented through its Director of Regional Relationships with speaking rights but in a non-voting capacity. The DHB is also represented on the Leadership Group, by a person to be nominated by the Board with speaking rights but in a non-voting capacity.
The standing membership of the Leadership Group shall be limited to 17 members (including the Independent Chairperson), but with the power to co-opt up to a maximum of three additional non-voting members where required to ensure effective planning and implementation. In accordance with Clause 30A of Schedule 7 to the Local Government Act 2002, the quorum at a meeting of the Leadership Group shall be 9 voting members.
Other representatives of voting and non-voting organisations are permitted to attend meetings of the Leadership Group. Speaking rights of other representatives at Leadership Group meetings (whether in public session or not) shall only be granted with the prior approval of the Chairperson. In respect of SmartGrowth Leadership Group workshops, all members of partner governance groups can attend and participate.
3. Meeting Frequency
Bi-monthly, or as necessary and determined by the Independent Chairperson.
Notification of meetings and the publication of agendas and reports shall be conducted in accordance with the requirements of Part 7 of the Local Government Official Information and Meetings Act 1987 and will be undertaken by the agreed administration authority.
4. Delegations
The SmartGrowth Leadership Group is delegated the following functions in support of its overall 2
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purpose:
Co-ordinating Sub-regional Spatial Planning
. Providing sub-regional leadership on spatial planning, growth, infrastructure planning and development, focusing on key issues including the four well-beings3 and the sustainable management of natural resources. . Undertaking high-level spatial planning and dealing with cross boundary matters. . Determining as far as practicable consistency between the various Government National Policy Statements . Overseeing and coordinating National Policy Statement on Urban Development implementation. . Reviewing and updating the SmartGrowth Settlement Pattern . Overseeing infrastructure / facilities and the funding necessary to implement the Settlement Pattern. . Setting overarching sub-regional policy, actions and approaches relevant to the SmartGrowth Strategy. . Sharing the challenges of implementation and overcoming the barriers moving forward.
Urban Growth Partnership
. Overseeing the development and implementation of a joint spatial plan for the western Bay of Plenty sub-region and associated work streams, including adopting any drafts for public consultation. . Overseeing, including any reviews and monitoring, a joint urban growth programme. . Ensuring organisation systems and resources support implementation of the joint spatial plan and any associated urban growth programme. . Addressing cross-boundary matters within the western Bay of Plenty sub-region, as well as with other neighbouring regions. . Addressing housing affordability matters. . Monitoring the implementation of the spatial plan and associated work streams. . Reviewing and recommending changes to the spatial plan if circumstances change. . Ensuring alignment with existing council plans, strategies and policies, and with existing evidence. . Ensuring alignment with initiatives already underway such as the Urban Form and Transport Initiative. . Facilitating consultation with the partners and the wider community where relevant.
Future Thinking and Advocacy
. Having a united voice where issues require joint advocacy.
3 The four well-beings refer to cultural, economic, environmental and social matters.
3
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. Development and leadership of an agreed sub-regional advocacy programme . Engagement on intra and inter-regional matters where there are impacts beyond the sub- region, including matters of Upper North Island or national importance. . Facilitating community understanding and discussions/conversations. . Facilitating specific consultation with the community on SmartGrowth implementation matters. . Establishing, maintaining and engaging with the SmartGrowth Partner Forums. . Communicating and engaging with key stakeholders where a sub-regional level view is required. . Identifying and resolving any consultation inconsistencies between the SmartGrowth strategies and subsequent public consultation processes of the partner Councils
SmartGrowth Strategy Development, Implementation and Alignment Monitoring
. Overseeing the implementation of the 2013 SmartGrowth Strategy, in particular the strategy actions, and undertaking any reviews or updates to the Strategy, including adopting any drafts for public consultation. . Ensuring organisation systems and resources support strategy implementation. . Taking responsibility for progressing those actions specifically allocated to the SmartGrowth Leadership Group in the strategy and making sure implementation does occur. . Reviewing and recommending adjustments to the strategy if circumstances change. . Champion integration and implementation through partner strategies, programmes, plans and policy instruments (including the Regional Policy Statement, Regional and District Plans, Long Term Plans (LTPs), Annual Plans, transport plans and triennial agreements) and through partnerships with other sectors such as health, education and business. . Approving submissions to Local Authorities, Central Government and other agencies on SmartGrowth related matters . Monitoring of the strategic outcomes and ensuring a joined-up approach to strategy implementation, including monitoring and reporting implementation progress against key milestones . Overviewing the management of the risks identified in implementation. . Making specific recommendations to partners on the joined-up thinking needed for resolving issues
Committee Operations
. Selecting and appointing an Independent Chairperson and a Deputy Chairperson. . Implementing any Memoranda of Agreement or Understanding, as adopted by the Leadership Group. . Establish protocols and arrangements to ensure that implementation, where necessary, is consistent, collaborative and/or coordinated to achieve optimal outcomes.
4
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Central Government’s participation in the SmartGrowth Leadership Group does not constitute endorsement of initiatives in any way, and all financial, policy and other decisions still need to be approved by Central Government.
5. Variation of this Agreement
This agreement may be varied from time to time, but only with the agreement of each of the partners.
5
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Execution
Bay of Plenty Regional Council by:
Chairperson: Doug Leeder Chief Executive: Fiona McTavish
Dated: Dated:
Tauranga City Council by:
Mayor: Tenby Powell Chief Executive: Marty Grenfell
Dated: Dated:
Western Bay of Plenty District Council by:
Mayor: Garry Webber Chief Executive: Miriam Taris
Dated: Dated:
Tāngata Whenua Representative by:
Buddy Mikaere
Dated:
6
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Central Government by:
Dated
7
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Appendix 1: SmartGrowth Leadership Group Terms of Reference
SmartGrowth Leadership Group (SLG)
Purpose: The purpose of the Joint Committee (SmartGrowth Leadership Group) is to undertake and implement strategic spatial planning across the western Bay of Plenty sub-region4 in accordance with the SmartGrowth Strategy, outcomes from the Urban Form and Transport Initiative and the joint spatial plan as agreed between the Crown and the SmartGrowth partners.
The SmartGrowth Leadership Group carries out its purpose in accordance with the delegations set out in the Agreement.
General The SmartGrowth Leadership Group operates under the following principles: Principles: . Supporting the aim of developing a thriving western Bay of Plenty sub-region that is prosperous, has high levels of sustainable economic growth, supports affordable housing along with a transport system that can support that growth. . Supporting a four well-being approach to urban growth and spatial planning which incorporates cultural, economic, environmental and social well-being and builds on the SmartGrowth ‘live, learn, work and play’ vision. . Reinforcing an integrated planning approach incorporating land use, all infrastructure and funding. . Building on existing SmartGrowth work, including the 2013 Strategy, outcomes from Urban Form and Transport Initiative (“UFTI”), and the general SmartGrowth arrangements already in place. . Adopting a shared evidence base so that all parties are using common data. . Recognising and supporting the existing Urban Form and Transport Initiative (“UFTI”) which will underpin the development of one joint sub-regional spatial plan. . Taking account of the Western Bay Transport System Plan findings. . Acknowledging the benefits of a collaborative approach to urban growth and spatial planning, and to share responsibility for such planning between the parties in consultation with key sector groups and the sub-regional community. . Supporting the economic and social aspirations of tāngata whenua while protecting cultural identity. . Sustaining and improving the natural environment.
4 The ‘sub-region’ refers to the territorial areas of Tauranga City council and Western Bay of Plenty District Council.
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Monitoring and The SmartGrowth Leadership Group has responsibility for: Review: . Six- monthly monitoring and reporting on implementation of the principles set out in this Terms of Reference. . Monitoring the implementation of any joint urban growth programme developed. . Monitoring and reporting SmartGrowth implementation progress against key milestones. . Reviewing and recommending any changes to the SmartGrowth Strategy if circumstances change.
Membership: That representation of the SmartGrowth Leadership Group be comprised of: . Three elected member representatives as appointed by the contributing authorities, including the Mayors and Regional Council Chairperson - voting . Four representatives to be nominated by tāngata whenua - voting . An Independent Chairperson, to be appointed by the Leadership Group, to chair the Group – voting . Up to three Ministers of the Crown – voting . Additional Ministers, if and when relevant and required – non- voting . One DHB representative – non-voting . One NZTA representative – non-voting
That the standing membership of the Leadership Group shall be limited to 17 members (including the Independent Chairperson), but the SmartGrowth Leadership Group has the power to co-opt up to a maximum of three additional non-voting members where required to ensure the effective implementation of any part or parts of the Strategy including the joint (Crown and local partners) spatial plan.
Meeting Quarterly, or as necessary and determined by the Independent Chairperson. Frequency:
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APPENDIX 2
Strategy & Policy Committee 5 May 2020 Tabled Document 2 - SmartGrowth and Central Government Spatial Plan Partnership - Memorandum of Understanding DRAFT (Revised) - Amendments made from Strategy and Policy Committee Meeting 5 May 2020
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SmartGrowth and Central Government Spatial Plan Partnership - Memorandum of Understanding
Establishing the principles and approach to the creation of an enduring spatial plan partnership between Central Government and the SmartGrowth partners (Bay of Plenty Regional Council, Tauranga City Council, Western Bay of Plenty District Council and tāngata whenua)
Section 1 - Purpose
The purpose of this Memorandum of Understanding (“MOU”) is to:
Establish the principles and approach to the creation of an enduring spatial plan partnership between Central Government and the SmartGrowth partners (Bay of Plenty Regional Council, Tauranga City Council, Western Bay of Plenty District Council and tāngata whenua1).
Section 2 - Parties
The Parties to this MOU are Central Government, western Bay of Plenty sub-region tāngata whenua, the Bay of Plenty Regional Council, Tauranga City Council and Western Bay of Plenty District Council.
Section 3 - General Principles The parties to this MOU will use best endeavours to:
SUPPORT the aim of the spatial plan partnership to develop a thriving western Bay of Plenty sub- region that is prosperous, has high levels of sustainable economic growth, supports affordable housing and a transport system that can support that growth.
SUPPORT a four well-being approach to urban growth and spatial planning which incorporates cultural, economic, environmental and social well-being and builds on the SmartGrowth ‘live, learn, work and play’ vision.
COMMIT to the shared purpose and outcomes as outlined in this MOU while assisting each other to achieve individual partner objectives.
REINFORCE an integrated planning approach incorporating land use, all infrastructure and funding.
AGREE to build on the existing SmartGrowth work, including the 2013 Strategy, outcomes from Urban Form and Transport Initiative, and the general SmartGrowth arrangements already in place.2
ADOPT a shared evidence base so that all parties are using common data.
1 This is a reference to western Bay of Plenty sub-region tāngata whenua. 2 SmartGrowth Leadership Group membership, functions and procedures are dealt with through a different process, namely a Joint Agreement under Clause 30A, Schedule 7 of the Local Government Act 2002.
1 Page 149 of 166 SUBJECT TO COMPLETION AND ADOPTION, recognise and support RECOGNISE AND SUPPORT the existing Urban Form and Transport Initiative (“UFTI”) which will underpin the development of a joint sub-regional spatial plan.
ACKNOWLEDGE the benefits of a collaborative approach to urban growth and spatial planning, and to share responsibility for such planning between the parties in consultation with key sector groups and the sub-regional community.
AGREE to six- monthly reporting to the SmartGrowth Leadership Group on implementation of the principles and achievement of the outcomes as set out in this MOU.
ACKNOWLEDGE that this partnership is part of a wider Government Urban Growth Agenda initiative.
SUPPORT the economic and social aspirations of tāngata whenua while protecting cultural identity.
SUSTAIN and IMPROVE the natural environment.
Section 4 – Outcomes The outcomes sought from the urban growth partnership are to:
▪ Commit to the development and implementation of a joint, comprehensive sub-regional spatial plan. The first phase to be completed by June 2020 concentrates on an integration of the current UFTI and spatial planning work. Phase 2, that is likely to be completed by the end of 2020 will also encompass the Future Development Strategy as well as an update of the 2013 SmartGrowth Strategy. The aim is to develop in two phases a single strategic document for the western Bay of Plenty sub-region, which is implemented through co-governance arrangements. Engagement and consultation will occur as part of this process. It is likely that formal consultation will take place at the end of Phase 2. ▪ Wherever practicable cCommit to the development and implementation of an agreed investment and funding plan that is co-governed across all partner agencies, to enable timely implementation of the outcomes arising from the Urban Form and Transport Initiative, and the agreed joint spatial plan as outlined above. ▪ Take account of the Western Bay Transport System Plan findings. ▪ Commit to examining the opportunities for the development of an inter-regional collaboration between the SmartGrowth and Future Proof partnerships, with the strategic intent to have a joint Auckland-Hamilton-Tauranga corridor approach to spatial planning, particularly relating to transportation noting that where appropriate this initiative will also include any other authorities where agreed. . ▪ Subject to financial analysis Invest in all agreed infrastructure, together, through innovative funding and financing tools. ▪ Work together on improving the quality of the built and natural environments. ▪ Ensure that tāngata whenua are adequately resourced to effectively engage in the partnership and the key outcomes. ▪ Advance planning reform, through legislation and local planning instruments, to encourage growth both up and out. ▪ Commit, where possible, to supporting the development aspirations of Maori landowners for housing and other economic initiatives. ▪ Undertake joined up central and local government thinking, funding and commitments, including greater co-ordination of service delivery. ▪ Maintain a focus to ensure that housing affordability remains top of mind through all initiatives. 2 Page 150 of 166 ▪ Commit to funding the operation of the enhanced SmartGrowth partnership.
3 Page 151 of 166 Section 5 – Next Steps The parties to this MOU will use best endeavours to implement the spatial planning partnership by:
SUPPORTING an expansion of the SmartGrowth Leadership Group to include Central Government representatives.
COMMITTING to a review of tāngata whenua representation to ensure this is appropriate and comprehensive and will allow for meaningful contribution.
NOMINATING representatives to participate in SmartGrowth structures at all levels.
ALLOCATTING sufficient resources to enable the partnership to deliver the outcomes.
COMMITTING to completing a draft of the joint spatial plan no later than June 2020.
COMMITTING to agreeing a draft joint transformational urban growth – spatial planning programme no later than June 2020.
COMMITTING to investigating the establishment of an urban growth partnership fund where applications can be made for funding transformational projects on an annual basis.
Section 6 - Interpretation
▪ SmartGrowth partners refers to the Bay of Plenty Regional Council, Tauranga City Council, the Western Bay of Plenty District Council and tāngata whenua. It also includes the New Zealand Transport Agency and the Bay of Plenty District Health Board as non-voting partners. This membership is subject to review from time to time. ▪ Central Government refers to all Government ministries and agencies. ▪ Joint spatial plan refers to a plan that is agreed by central government, local government partners and tāngata whenua and implementation partners ▪ SmartGrowth means the western Bay of Plenty Spatial Plan 2013 as approved by the three partner Councils and tāngata whenua and supported by strategic partners. ▪ The SmartGrowth Leadership Group is the joint governance committee responsible for overseeing the SmartGrowth Strategy. ▪ The western Bay of Plenty sub-region refers to all of the land within the administrative areas of Tauranga City and the Western Bay of Plenty District and includes that part of the administrative area of the Bay of Plenty Regional Council as it relates to the two districts.
Any questions of interpretation of this MOU are to be raised with the parties to this MOU and collectively resolved. The parties agree to act in good faith in respect of implementing this MOU.
This MOU will run until the next review or update of the SmartGrowth Strategy, or alternatively no later than October 2022.
This MOU takes effect on the date it is signed by all parties.
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SIGNED for and on behalf of Central SIGNED for and on behalf of Central Government by: Government by:
SIGNED for and on behalf of the Tāngata SIGNED for and on behalf of the Bay of Plenty Whenua by: Regional Council by:
Buddy Mikaere Doug Leeder Chair Bay of Plenty Regional Council
SIGNED for and on behalf of the Tauranga City SIGNED for and on behalf of the Western Bay of Council: Plenty District Council:
Tenby Powell Garry Webber Mayor Tauranga City Council Mayor Western Bay of Plenty District Council
Dated:
5 Page 153 of 166
Page 154 of 166 Report To: Regional Council
Meeting Date: 25 June 2020
Report From: Mat Taylor, General Manager, Corporate
Disestablishment of the Eastern Bay Road Safety Committee
Executive Summary
The report provides the Council with an update on the current review of the Eastern Bay Road Safety Committee (EBRSC) and the reasons for, and implications of, the EBRSC’s recommendation that the EBRSC be disestablished and a new Operations Group be established.
Recommendations
That the Regional Council:
1 Receives the report, Disestablishment of the Eastern Bay Road Safety Committee;
2 Approve an Operational Road Safety Group be established subject to;
i. The development of a ‘Terms of Reference’ to be agreed by the member Councils; and
ii. Terms of Reference to include the appointment of an Elected Member from each partner Council; and
3 Agree, subject to the agreed terms of reference for the Operational Road Safety Group, that the Eastern Bay Road Safety Committee be disestablished.
1 Background
The EBRSC was established to provide strategic direction, oversight and leadership to ensure Eastern Bay roads are increasingly free of death and serious injury. It is a joint Committee of the four Councils in the Eastern Bay of Plenty region (comprising of Whakatāne, Ōpōtiki, Kawerau and Bay of Plenty Regional Council). Road Safety is identified as a priority area for the Eastern Bay and ensuring an effective Road Safety Programme is essential for the wellbeing of the community. At the end of the previous triennium, the EBRSC agreed the need for a review of the
Page 155 of 166 Disestablishment of the Eastern Bay Road Safety Committee
Committee’s Term of Reference and functions, to ensure a high level of engagement, and effective and efficient activity for the future. The key reasons for the review were: • high statistics of fatalities and serious injuries • a new National Road Safety Strategy – Road to Zero • a need to improve efficiency and effectiveness • new Councillors in a new triennium that bring new perspective and insight A review process has been underway since November 2019, including the history of the Committee, its current relationships and accountabilities, reporting structures, meeting procedures, membership and the current Terms of Reference. The review process included a survey sent to key stakeholders including Committee members (past and present), Operations Group members and partner agency personnel. The three key findings of the review were: 1. Concern regarding the effectiveness of the Road Safety Committee The performance of the Committee against the Committee’s objective, aims and principles was rated average or below average with a low level of strategic oversight and innovation at Committee level and varied levels of engagement from the Committee membership and a sense that the Committee was an information-receiving rather than a decision-making body.
2. Concern regarding the efficiency of the Road Safety Committee No consistency in regional governance road safety structures, co-ordination and accountability. Duplication of reporting and personnel at operational and governance levels, resulting in inefficiencies. A lack of confidence that all representative Councils and partner agencies were clearly aware of meeting outcomes and key road safety matters and therefore a strong desire and need to clarify reporting and accountability lines.
3. Confidence in the effectiveness and efficiency of the Operations Group The Operations Group in the Eastern Bay (and others regionally) provides active oversight and is working well with good stakeholder collaboration and there is a high degree of confidence and support in the production of and management of the road safety action plan by staff. The review showed a desire to combine the governance and operations groups and strengthen its functions and for the operational group to report directly to the Regional Transport Committee. This is consistent with work underway in Rotorua and Western Bay of Plenty who have recently gone through their own reviews of Road Safety Committees, which have resulted in a combined high level governance/operational group in Rotorua and the Joint Committee in Western Bay of Plenty not being re-established this triennium. These findings were presented to the EBRSC through the Eastern Bay of Plenty Road Safety Review 2020 report at their meeting on Tuesday, 25 February 2020. At this meeting, the Committee passed the following recommendations to the Council. RESOLVED: 1. THAT the Eastern Bay Road Safety Committee recommend to each of the partner Councils, an Operational Road Safety Group be established subject to;
2 Page 156 of 166 Disestablishment of the Eastern Bay Road Safety Committee
i) development of a ‘Terms of Reference’ to be agreed by the member Councils; and ii) Terms of Reference to include the appointment of an Elected Member from each partner Council; and 2. THAT, subject to the agreed terms of reference for the Operational Road Safety Group, that the Eastern Bay Road Safety Committee be disestablished. Chairperson Dennis/Member Moore CARRIED This report is submitted to all four partner councils.
2 Budget Implications
2.1 Current Year Budget
The development of draft Terms of Reference for the proposed new Operational Road Safety Group, to be met within existing budgets.Future Budget Implications
There are no known additional budget implications associated with disestablishing the EBRSC and replacing with an Operational Road Safety Group. 3 Community Outcomes
This item directly contributes to the Safe and Resilient Communities Community Outcome in the Council’s Long Term Plan 2018-2028. 4 Next Steps
If all the four joint Councils approve the recommendations, work would commence on developing a Terms of Reference for the new Operational Road Safety Group for each Council to approve.Once the Operational Road Safety Group was established, the EBRSC would be formally disestablished.
The EBRSC will be put on hold until a resolution can be agreed by all Councils regarding the EBRSC’s recommendations or the Terms of Reference for the Operational Group. If no agreement can be reached and the EBRSC is to continue, adjustments will be needed to the EBRSC Terms of Reference and meetings will be re-established.
Yvonne Tatton Governance Manager for General Manager, Corporate
17 June 2020 Click here to enter text.
3 Page 157 of 166
Page 158 of 166 Report To: Regional Council
Meeting Date: 25 June 2020
Report From: Namouta Poutasi, General Manager, Strategy & Science
Regional Coastal Environment Plan
Executive Summary
The majority of the Bay of Plenty Regional Coastal Environment Plan was adopted by the Bay of Plenty Regional Council (Council) in 2019 and made operative by the Minister of Conservation in December 2019. The Environment Court has now made decisions that finally dispose of the two outstanding appeals relating to Topic 5 (Matakana – Mapping and assessment of biodiversity and ONFLs) and Topic 12 (Motiti Marine Spatial Planning). The next stage is for Council to resolve to adopt the remaining part of the Regional Coastal Environment Plan and refer it to the Minister of Conservation for approval. Following Ministerial approval the approved Plan can then be made operative pursuant to clause 20 of Schedule 1.
Recommendations
That the Regional Council:
1. Resolves to adopt the remaining parts of the proposed Bay of Plenty Regional Coastal Environment Plan to be effected by affixing the seal of the Regional Council
2. Resolves to refer the Bay of Plenty Regional Coastal Environment Plan to the Minister of Conservation for approval.
1 Background
Council is required by the Resource Management Act 1991 (RMA) to produce a regional coastal plan, which promotes sustainable management of coastal resources in the Bay of Plenty region.
The Regional Direction and Delivery Committee resolved at its 30 October 2018 meeting to adopt the second generation Bay of Plenty Regional Coastal Environmental Plan, subject to the two outstanding appeals, Matakana - mapping and assessment of biodiversity and ONFLs and Motiti Marine Spatial Planning. The plan was sent to the Minister of Conservation who approved it on 3rd December 2019, thus making the plan operative.
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2 Final Environment Court Decisions
The Environment Court (‘the Court’) has now provided full and final decisions regarding the two outstanding appeals (the decisions are available on the Council website):
The Matakana appeal was largely resolved on 8 October 2019, subject to translations of ratings in Schedule 3 of the plan. The hapū provided their position on the translations to the Court and on 17 June 2020 the Court provided final comment on these translations. The Motiti appeal was resolved on the 8 June 2020. The interim decision in May 2019 provided clear direction for Council which was supported by the Court of Appeal decision dated 4 November 2019 and informed the Environmental Court decision dated 24 April 2020. The two appeals have been included in a track changed version of the Plan.
Topic number & Decisions Date Received description Topic 5 – Application of the 1. NZEnvC168 Western Bay of Plenty 8 October 2019 plan District Council v Bay of Plenty Regional Council 17 June 2020 Mapping and assessment 2. ENV-2015-AKL-000127 Western of biodiversity and ONFLs Bay of Plenty District Council v Bay of Plenty Regional Council
Topic 12 –Application of 1. ENV-2015-AKL-134 Motiti Marine 11 May 2019 the plan Spatial Planning - Interim Decision No. [2018] NZEnvC 067 dated 11 Motiti Marine Spatial May 2018 Planning 24 April 2020 2. EnvC 050 Motiti Rohe Moana Trust v Bay of Plenty Regional Council
3. NZEnvC 073 Motiti Rohe Moana 8 June 2020 Trust vs BoP Regional Council.
3 Legal Context
Clause 18(4) of Schedule 1 to the Resource Management Act provides for Council to adopt part of a proposed regional coastal plan if all inquiries (appeals) relating to that part of the plan have been disposed of. The majority of the proposed Bay of Plenty Regional Coastal Environment plan was made operative on 3 December 2019. The balance of the proposed Plan was not made operative due to two outstanding appeals. The abovementioned table outlines the decisions by the Court that finally dispose of the two outstanding appeals relating to Topic 5 and Topic 12.
Therefore it is recommended that Council now resolves to adopt the remaining parts of the proposed Regional Coastal Environment Plan by affixing the seal of the Regional Council to the proposed Plan and then refering it to the Minister of Conservation for approval pursuant to clause 19 of the First Schedule. Following Ministerial approval the approved Plan can then be made operative pursuant to clause 20 of Schedule 1.
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4 Māori Implications
Matakana ONLF appeal processed resulted in a collaborative approach with the hapū with an outcome which satisfied all parties. Motiti Marine Spatial planning appeal has traversed legal matters in the High Court, Court of Appeal and the Environment Court and although the appeal included Ngāti Mākino Heritage Trust and Ngāti Ranginui Iwi there are other iwi and hapū group who have not been involved with the process. The Court decision includes methods within the plan that involves tangata whenua in the education strategy and scientific monitoring programme. This process will be collaborative and include co-design to ensure future outcomes are inclusive. While the resolution of the appeals has been resolved through the Court, staff are satisfied that the principles of the Treaty of Waitangi have been appropriately had regard to. Hapū and iwi will be updated once the Minister approves the Plan.
5 Next Steps
To refer the Plan to the Minister of Conservation for approval pursuant to clause 19 of the First Schedule.
6 Budget Implications
6.1 Future Budget Implications
Implementation of the Regional Coastal Environment Plan is provided for in Council’s Long Term Plan 2018-2028. 7 Community Outcomes
The completion of the second generation Regional Coastal Environment Plan directly contributes to the ‘Healthy Environment’ community outcome in the Council’s Long Term Plan 2018-2028.
Stacey Faire Senior Planner (Coastal) for General Manager, Strategy & Science
17 June 2020 Click here to enter text.
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Report To: Regional Council
Meeting Date: 25 June 2020
Report From: Karen Aspey, Director, People & Leadership
Long Term Plan 2021-2031 pre engagement
Executive Summary
Councillors provided direction to staff at the 9 June LTP workshop to conduct pre- engagement on the plan. Staff are developing a pre engagement programme based on the draft Strategic Direction, with a range of engagement mechanisms proposed to seek input from a demographically representative range of our community.
Recommendations
That the Regional Council:
1 Receives the report, Long Term Plan 2021-2031 pre engagement ;
2 Notes that staff will work with Chairman Leeder and Councillor Thompson to confirm the questions;
3 Notes that once these questions have been confirmed, pre-engagement will commence via the mechanisms noted below, with the first tranche available for the 12 August LTP workshop.
1 Background
At the Long Term Plan workshop of 9 June 2020, Councillors gave direction to undertake pre-engagement on topics of relevance to the Long Term Plan.
2 Goals of Pre-Engagement
We aim to:
. Gain high-level direction and endorsement from the community on our updated strategic direction for the Long Term Plan 2021-2031;
. Demonstrate that BOPRC is open to transformational change;
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. Extend our engagement so it becomes more demographically representative; and
. Enhance our understanding of what community wellbeing means for our community.
3 Approach
The current draft Strategic Direction has been used to inform the approach for pre- engagement on the Long Term Plan. We have identified several areas of the draft Strategic Direction for focus during pre-engagement, and will work with Cr Thompson and Chair Leeder to finalise this. Currently, the identified focus areas are:
. BOPRC, the LTP, and Regional Recovery
. Partnerships with Maori
. Climate Change
. Overall role and responsibility of regional council over the next ten years 4 Existing knowledge from recent engagement work
BOPRC has conducted a significant amount of community engagement recently, including for various Plan Changes, the Regional Fare Review, and the Flooding and Drainage Bylaw. We are also conducting pre-engagement via the Financial Framework, Regional Recovery Programme, Independent Māori Responsiveness Framework, and Resident’s Survey.
Information from these engagement processes will be integrated into the overall LTP pre-engagement process. 5 Mechanisms
We are considering a range of mechanisms to enable us to engage with a range of demographically representative people. Some options include:
. Iwi Leaders Relationship Hui
. Sub Regional Hui (TBC)
. Meetings with iwi leaders
. Presence at high traffic events e.g. Community Winter Sports
. Social Media
. Focus Groups
. Survey/Display Presence at Community Centres
. Newsletters
6 Budget Implications
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6.1 Current Year Budget
Pre-engagement will be delivered within current activity baselines. We estimate marketing costs for pre-engagement will be in the range of $80,000-$100,000. A significant amount of staff time will also be involved and thus unavailable for other functions.
7 Community Outcomes
This project primarily contributes to the Community Outcome A Vibrant Region. 8 Implications for Maori
The pre-engagement process is being designed in a way that ensures that iwi/Māori are adequately represented in the engagement sample, so that their views are fully heard.
Zhivan Alach Organisational Performance Manager for Director, People & Leadership
17 June 2020 Click here to enter text.
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