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Prospective Financial Statements Council Agenda (12 February 2019) - Extraordinary - Agenda MEETING AGENDA COUNCIL Tuesday 12 February 2019 at 1.30pm COUNCIL CHAMBER LIARDET STREET NEW PLYMOUTH Chairperson: Mayor Neil Holdom Members: Cr Richard Jordan (Deputy) Cr Shaun Biesiek Cr Gordon Brown Cr Murray Chong Cr Harry Duynhoven Cr Richard Handley Cr Stacey Hitchcock Cr Colin Johnston Cr John McLeod Cr Alan Melody Cr Mike Merrick Cr Marie Pearce Cr Roy Weaver Cr John Williams 1 Council Agenda (12 February 2019) - Extraordinary - Agenda Purpose of Local Government The reports contained in this agenda address the requirements of the Local Government Act 2002 in relation to decision making. Unless otherwise stated, the recommended option outlined in each report meets the purpose of local government and: Will help 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; Would not alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the Council, or transfer the ownership or control of a strategic asset to or from the Council. END 2 Council Agenda (12 February 2019) - Extraordinary - Health and Safety Health and Safety Message In the event of an emergency, please follow the instructions of Council staff. Please exit through the main entrance. Once you reach the footpath please turn right and walk towards Pukekura Park, congregating outside the Spark building. Please do not block the foothpath for other users. Staff will guide you to an alternative route if necessary. If there is an earthquake – drop, cover and hold where possible. Please be mindful of the glass overhead. Please remain where you are until further instruction is given. 3 Council Agenda (12 February 2019) - Extraordinary - Apologies APOLOGIES None Received 4 Council Agenda (12 February 2019) - Extraordinary - Deputations ADDRESSING THE MEETING Requests for public forum and deputations need to be made at least one day prior to the meeting. The Chairperson has authority to approve or decline public comments and deputations in line with the standing order requirements. PUBLIC FORUM Public Forums enable members of the public to bring matters to the attention of the committee which are not contained on the meeting agenda. The matters must relate to the meeting’s terms of reference. Speakers can speak for up to 5 minutes, with no more than two speakers on behalf of one organisation. None Advised DEPUTATIONS Deputations enable a person, group or organisation to speak to the meeting on matters contained on the agenda. An individual speaker can speak for up to 10 minutes. Where there are multiple speakers for one organisation, a total time limit of 15 minutes, for the entire deputation, applies. None Advised 5 Council Agenda (12 February 2019) - Extraordinary - Table of Contents REPORTS 1 Setting Aside Forestry Joint Venture Surpluses for Projects Approved by Council 2 Annual Plan 2019/2020 – Preliminary Decisions 3 Update to Schedule of Fees and Charges for 2019/20 END 6 1 Council Agenda (12 February 2019) - Extraordinary - Setting Aside Forestry Surpluses for projects approved by Council SETTING ASIDE FORESTRY JOINT VENTURE SURPLUSES FOR PROJECTS APPROVED BY COUNCIL MATTER 1. The matter for consideration by the Council is to consider allocating forestry surpluses (Council owned and joint ventures) to a new reserve to be used for funding projects approved by Council. RECOMMENDATION FOR CONSIDERATION That having considered all matters raised in the report the Council approves the establishment of a new reserve funded from forestry surpluses to be used for funding projects approved by Council. COMPLIANCE Significance This matter is assessed as being of some importance. This report identifies and assesses the following reasonably practicable options for addressing the matter: 1. Approve the new reserve, funded from forestry surpluses, to be used for future funding projects approved by Council. Options 2. Approve the new reserve to be used for another purpose. 3. Do nothing and forestry surpluses will flow through to the general rates surplus. The persons who are affected by or interested in this matter Affected Persons are all residents of the New Plymouth District. Recommendation This report recommends option 1. Long-Term Plan / Annual Plan Yes Implications Significant Policy and Plan No Inconsistencies 7 1 Council Agenda (12 February 2019) - Extraordinary - Setting Aside Forestry Surpluses for projects approved by Council BACKGROUND 2. The Council has three historical Forestry joint ventures and some ongoing owned forestry land, held for strategic purposes. 3. The joint ventures conclude following harvest, so are a one-off opportunity. 4. For the Council-owned larger sites like Colson Road and Lake Mangamahoe, if forestry remains the optimal land use, they are likely to be replanted and harvestable in the future (around every 30 years). 5. Harvest revenue, costs and profits were not included in the 2018-28 Long Term Plan. 6. Surplus from harvesting in this financial year is expected to be in the vicinity of $727k. 7. Future harvesting estimates are provided in the following table. Note that these estimates are based on current timber prices and costs of harvesting. $'000 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/18 Joint Ventures 177 - - - 403 403 747 - - - Council Owned 550 - 1,100 - 80 - - - - 700 TOTAL 727 - 1,100 - 483 403 747 - - 700 ACCUMULATED TOTAL 727 727 1,827 1,827 2,310 2,712 3,459 3,459 3,459 4,159 8. If the option is taken to do nothing, the Treasury Management policy provides the Council with the option to use the rates surplus, of which the forestry surplus would contribute, to repay debt or apply against rates over the three years following the surplus. SIGNIFICANCE AND ENGAGEMENT 9. In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as being of some importance because it gives the Council a reserve to draw upon for future projects. OPTIONS 10. The following matters apply to all options: a) Consistency with Policies and Plans The options are consistent with the Council's plans and policies, specifically the Treasury Management Policy. b) Participation by Māori There has been no participation by Māori in relation to this matter. 8 1 Council Agenda (12 February 2019) - Extraordinary - Setting Aside Forestry Surpluses for projects approved by Council c) Community Views and Preferences The three options are consistent with the Treasury Management Policy. The policy was adopted following public consultation, and the community views and preferences were considered at that time. d) Promotion or Achievement of Community Outcomes Allocation of forestry surplus funds could help achieve community outcomes, promote Caring for our Place, and could promote Supporting a Prosperous Community. e) Statutory Responsibilities There are no statutory responsibilities. Option 1 & 2 Approve a new reserve a) Financial and Resourcing Implications The accounting treatment of the surplus has no impact on other resourcing in the current financial year and could reduce rates impact in future years. b) Risk Analysis There is no apparent risk to this option. Option 3 Do nothing resulting and the forestry surplus will flow through to the rates surplus a) Financial and Resourcing Implications If the forestry surplus flows through to the rates surplus, it could be applied to reduce debt. b) Risk Analysis There is no apparent risk to this option. Recommended Option This report recommends option 1. Approve the new reserve, funded from forestry surpluses, to be used for future funding projects approved by Council. Report Details Prepared By: Alison Trustrum-Rainey (Acting CFO) Team: Business Performance Group Approved By: Craig Stevenson (CEO) Ward/Community: District Wide Date: 16 January 2019 File Reference: ECM 7918897 -------------------------------------------------------End of Report --------------------------------------------------- 9 Council Agenda (12 February 2019) - Extraordinary - Annual Plan 2019/20 - Preliminary Decisions 2 ANNUAL PLAN 2019/20 – PRELIMINARY DECISIONS MATTER 1. The matter for consideration by the Council is preliminary decisions on the Annual Plan 2019/20 (the second year of the Long-Term Plan 2018-28), including agreeing to changes and determining whether or not to consult on the Annual Plan before adopting it. RECOMMENDATION FOR CONSIDERATION That having considered all matters raised in the report the Council: a) Note that the Long-Term Plan 2018-28 provides that the financial year 2019/20 has a forecast 4.98 per cent total rates increase b) Agree to the proposed changes contained in the attached draft Annual Plan 2019/20 from the Long-Term Plan 2018-28 with a reduced rates requirement increase from 4.98 per cent to 4.60 per cent, resulting in the average residential rate increasing 3.82 per cent (being $86.03 per annum or $1.65 per week) c) Determines that none of the changes contained in the initial draft Annual Plan 2019/20 are significant or material variations from the Long-Term Plan and therefore statutory consultation on the Annual Plan 2019/20 is not required d) Instruct staff to develop and undertake an informal community conversation to inform planning and implementation of the following projects: i) The future use of the Colson Road landfill post-closure ii) The extension of the Coastal Walkway from Bell Block to Waitara iii) Enhancing the Council’s role in the Towards Predator-Free Taranaki initiative, and e) Notes that a finalised draft Annual Plan will be presented to the Council for adoption on 21 May 2019. 10 Council Agenda (12 February 2019) - Extraordinary - Annual Plan 2019/20 - Preliminary Decisions 2 COMPLIANCE Significance This matter is assessed as being significant This report identifies and assesses the following reasonably practicable options for addressing the matter: Annual Plan contents 1.
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