NOTICE of MEETING Notice Is Hereby

Council - AGENDA

NOTICE OF MEETING

Notice is hereby given of the Meeting of the Invercargill City Council to be held in the Council Chamber, First Floor, Civic Administration Building, 101 Esk Street, Invercargill on Thursday 27 June 2019 at 4.00 pm

Sir T R Shadbolt, KNZM JP Cr R R Amundsen (Deputy Mayor) Cr R L Abbott Cr A J Arnold Cr K F Arnold Cr T M Biddle Cr A H Crackett Cr I L Esler Cr G D Lewis Cr D J Ludlow Cr I R Pottinger Cr L F Soper Cr L S Thomas

CLARE HADLEY CHIEF EXECUTIVE

1 Council - AGENDA

Council’s Values:

Responsibility Take ownership of decisions and outcomes, both collectively and individually. ∑ We willingly share our knowledge. ∑ We acknowledge our mistakes, work to resolve them and learn from them. ∑ We give and receive feedback in a constructive manner to resolve issues. ∑ We do our job with total commitment.

Respect Everyone is important, as are their views. ∑ We support and care for each other. ∑ We stop to listen, learn and understand. ∑ We communicate in an honest, up-front and considerate manner. ∑ We maintain confidences and avoid hurtful gossip.

Positivity Always look on the bright side of life. ∑ We are approachable, interested and friendly. ∑ We are open and receptive to change. ∑ We acknowledge and praise the efforts of others. ∑ We work together as a team to get the job done.

Above and Beyond Take opportunities to go the extra mile. ∑ We take the initiative to improve our work practices to get the best results. ∑ We challenge ourselves and each other to make it better. ∑ We take pride in providing the best possible outcomes. ∑ We are ambassadors for our Council at all times.

Council’s Vision for the City:

Enhance our City and preserve its character, while embracing innovation and change.

Council’s Vision:

We are an energised, fun and innovative team that makes it better for each other and our community.

Council’s Mission:

Making it better by making it happen.

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A G E N D A

Page

2. APOLOGIES

3. PUBLIC FORUM

3.1 MATARIKI

Dean Whaanga, Kaupapa Taiao Manager will be in attendance to speak to this item.

3.2 SMAG UPDATE

Cr Biddle will be updating Council on this item.

3.3 OTATARA LANDCARE GROUP

Barry and Robyn Smith will be in attendance to speak to this item.

4. INTEREST REGISTER 6

5. REPORT OF THE INVERCARGILL YOUTH COUNCIL 12

6. MINUTES OF THE MEETING OF COUNCIL HELD ON 28 MAY 14 2019

7. MINUTES OF THE EXTRAORDINARY MEETING OF COUNCIL 31 HELD ON 5 JUNE 2019

8. MINUTES OF THE MEETING OF THE BLUFF COMMUNITY 38 BOARD HELD ON 10 JUNE 2019

9. ADOPTION OF 2019/20 ANNUAL PLAN 42

9.1 Appendix 1 44

10. 2019/20 RATES RESOLUTION 116

11. ADOPTION OF FEES AND CHARGES 124

11.1 Appendix 1 126

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12. FOREST GROWTH HOLDINGS LIMITED 170

13. SOUTHLAND REGIONAL DEVELOPMENT AGENCY 173 TRANSITION

14. 2019 LGNZ ANNUAL GENERAL MEETING REMITS 178

14.1 Appendix 1 191

15. MAYOR’S REPORT

To be tabled.

16. URGENT BUSINESS

17. PUBLIC EXCLUDED SESSION

Moved, seconded that the public be excluded from the following parts of the proceedings of this meeting; namely

(a) Confirming of Minutes of the Public Excluded Session of Council - 28 May 2019. (b) Confirming of Minutes of the Public Excluded Session of the Extraordinary Council Meeting – 5 June 2019. (c) Final Statement of Intent – Invercargill City Holdings Limited (d) Southland Museum and Art Gallery Governance Arrangements.

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)(d) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each Reason for passing this Ground(s) under matter to be considered resolution in relation to Section 48(1) for the each matter passing of this resolution

(a) Confirming of Enable any local authority Section 7(2)(i) Minutes – Council holding the information to 28 May 2019 carry on, without disadvantage, negotiations (including commercial and industrial negotiations)

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(b) Confirming of Enable any local authority Section 7(2)(i) Minutes – holding the information to Extraordinary carry on, without Council 5 June 2019 disadvantage, negotiations (including commercial and industrial negotiations)

(c) Final Statement of Enable any local authority Section 7(2)(h) Intent – Invercargill holding the information to City Holdings carry on, without Limited disadvantage, negotiations (including commercial and industrial negotiations)

(d) Southland Museum Enable any local authority Section 7(2)(h) and Art Gallery holding the information to Governance carry out, without Arrangements prejudice or disadvantage, commercial activities

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5 Council - INTEREST REGISTER

INVERCARGILL CITY COUNCIL ELECTED MEMBERS INTEREST REGISTER

A2279220 ELECTED MEMBERS NAME ENTITY INTERESTS PROPERTY RONALD LINDSAY ABBOTT Invercargill City Council Councillor Kiwi-Pie Radio 88FM Invercargill Director / Broadcaster Invercargill Art Gallery Council Representative / Board Invercargill Venues and Events Member Management Director REBECCA RAE AMUNDSEN Invercargill City Council Councillor Arch Draught Ltd Director BP Orr Ltd Director Task Ltd Director Arts Murihiku Trustee Dan Davin Literary Foundation Trustee/Chair Heritage South Contractor Glengarry Community Action Events Co-ordinator (Volunteer) Group SMAG Board Council Representative Venture Southland Council Representative Southland Regional Heritage Council Representative Committee

Members Interest Register 5 June 2019

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INVERCARGILL CITY COUNCIL ELECTED MEMBERS INTEREST REGISTER

A2279220 ALLAN JAMES ARNOLD Invercargill City Council Councillor Ziff’s Café Bar Ltd Executive Director Buster Crabb Ltd Executive Director Ziff’s Tour Ltd Executive Director Ziff’s HR Ltd Executive Director Ziff’s Trust Trustee Administrator NZMCA Member Southland Aero Club Member Invercargill Club Member Invercargill East Rotary Member Southland Aero Club Committee Member KAREN FRANCES ARNOLD Invercargill City Council Councillor Funding Scheme Trustee/Chair

TONI MARIE BIDDLE Invercargill City Council Councillor Invercargill Venue and Events Director Management Limited Southland Museum and Art Gallery Trustee Trust Board McIntyre and Dick Husband (Kris MacLellan) – Chief Executive Officer Waihopai Runaka As a contractor

Members Interest Register 5 June 2019

7 Council - INTEREST REGISTER

INVERCARGILL CITY COUNCIL ELECTED MEMBERS INTEREST REGISTER

A2279220 ALEX HOLLY CRACKETT Invercargill City Council Councillor High Street Ride Southland Chair Invercargill Southland Youth Futures Advisory Chair Board Venture Southland and Sub Council Representative Committee Sport Southland Trustee McIntyre Dick Marketing Manager IRWIN LLOYD ESLER Invercargill City Council Councillor Bluff Community Board Council Representative Bluff Maritime Museum Council Representative Otatara Landcare Group Member GRAHAM DAVID LEWIS Invercargill City Council Councillor Invercargill City Holdings Limited Director Southland Indoor Leisure Centre Trustee Charitable Trust Bluff 2024 Rejuvenation Officer Invercargill Community Recreation Trustee & Sports Trust Hospice Southland Trustee Invercargill City Properties Director

Members Interest Register 5 June 2019

8 Council - INTEREST REGISTER

INVERCARGILL CITY COUNCIL ELECTED MEMBERS INTEREST REGISTER

A2279220 DARREN JAMES LUDLOW Invercargill City Council Councillor 770 Queens Drive Radio Southland Manager Invercargill Invercargill City Holdings Limited Director Invercargill Venue and Events Director / Chairman Management Southland Museum and Art Gallery Trustee Trust Board Healthy Families Invercargill Board Member Murihiku Maori Wardens Board Member Southland Community Law Centre Board Member Invercargill Community Recreation Trustee and Sport Trust Invercargill City Properties Director IAN REAY POTTINGER Invercargill City Council Councillor 171 Terrace Street Southland Electronics Limited Director Invercargill 9810 Santa Parade Organiser Alice Pottinger (Wife) TIMOTHY RICHARD Invercargill City Council Mayor SHADBOLT Invercargill Airport Limited Director Kiwi Speakers Limited Director SIT Ambassador Contractor

Members Interest Register 5 June 2019

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INVERCARGILL CITY COUNCIL ELECTED MEMBERS INTEREST REGISTER

A2279220

LESLEY FRANCES SOPER Invercargill City Council Councillor 137 Morton Street Breathing Space Southland Trust Chair Strathern (Emergency Housing) Secretary/Treasurer Invercargill Omaui Tracks Trust Member National Council of Women (NCW) Active Communities Chair/Trustee 24 Margaret Street Invercargill Public Art Gallery Board Member Richmond Citizens Advice Bureau Board Member Invercargill Southland ACC Advocacy Trust Employee LINDSAY STEWART Invercargill City Council Councillor THOMAS Invercargill City Holdings Limited Director HWCP Management Limited Director

Members Interest Register 5 June 2019

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INVERCARGILL CITY COUNCIL ELECTED MEMBERS INTEREST REGISTER

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EXECUTIVE STAFF NAME ENTITY INTERESTS PROPERTY PAMELA GARE Invercargill City Council Director of Environmental and Planning Services DJ & PM Gare Family Trust Trustee

CLARE HADLEY Invercargill City Council Chief Executive Hadley Family Trust Trustee

CAMERON MCINTOSH Invercargill City Council Director of Works and Services

DAVID FOSTER Invercargill City Council Acting Director of Finance and Corporate Services Executive Director Foster and Associates Ltd

Members Interest Register 5 June 2019

11 Council - REPORT OF THE INVERCARGILL YOUTH COUNCIL

TO: COUNCIL

FROM: MARY NAPPER, COMMUNITY DEVELOPMENT MANAGER

MEETING DATE: THURSDAY 27 JUNE 2019

INVERCARGILL YOUTH COUNCIL

SUMMARY

The Invercargill Youth Council will be presenting their Youth Week project.

RECOMMENDATIONS

That report Invercargill Youth Council be received.

IMPLICATIONS

1. Has this been provided for in the Long Term Plan/Annual Plan? Yes 2. Is a budget amendment required? No 3. Is this matter significant in terms of Council’s Policy on Significance? No 4. Implications in terms of other Council Strategic Documents or Council Policy? N/A 5. Have the views of affected or interested persons been obtained and is any further public consultation required? N/A 6. Has the Child, Youth and Family Friendly Policy been considered? Yes

FINANCIAL IMPLICATIONS

No implications.

YOUTH WEEK 2019

The theme of Youth Week 2019 was “We are More than you See”. The Invercargill Youth Council has developed a profile of the Youth Council based on this theme. Members will be present to share their new profile which explains that they “are more than you see”.

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LEADERSHIP FORUM 2019

The Youth Council are holding a leadership forum on Thursday 11 July 2019. The forum is targeting students in Years 9, 10 and 11. An invitation to attend this forum has been extended to the Councillors.

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13 Council - MINUTES OF THE MEETING OF COUNCIL HELD ON 28 MAY 2019

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MINUTES OF THE MEETING OF THE INVERCARGILL CITY COUNCIL HELD IN THE COUNCIL CHAMBER, FIRST FLOOR, CIVIC ADMINISTRATION BUILDING, 101 ESK STREET, INVERCARGILL, ON TUESDAY 28 MAY 2019 AT 4.00 PM

PRESENT: Sir T R Shadbolt, KNZM JP Cr R R Amundsen – Deputy Mayor Cr R L Abbott Cr A J Arnold Cr K F Arnold Cr T M Biddle Cr A H Crackett Cr I L Esler Cr G D Lewis Cr D J Ludlow Cr I R Pottinger Cr L F Soper Cr L S Thomas

IN ATTENDANCE: Mrs C Hadley – Chief Executive Mr C A McIntosh – Director of Works and Services Mrs P Gare – Director of Environmental and Planning Services Mr D Foster – Interim Director of Finance Mrs E Harris Mitchell – Manager Communications and Secretarial Services Mr R Pearson – Roading Manager Mr D Booth – Manager Financial Services Ms M Brook - Manager Strategy and Policy Mr A Cameron - Executive Officer Ms M Frey - Interim Parks Manager Ms M Napper – Manager Community Development Ms L Kuresa – Governance Officer

1. APOLOGIES

Nil.

2. PUBLIC FORUM

2.1 Electric Scooter Trial

Carolyn Weston was in attendance to speak to this item.

Mrs Weston voiced her concerns about her safety as a blind person whilst walking the footpaths of Invercargill, in relation to the trial of electric scooters. She wanted Council to ensure that it was not going to breach its current bylaws whilst this trial was in place. Council needed to make good decisions and be a good role model in relation to this matter.

In response to questions, Mrs Weston gave the following answers:

1. Bicycles are operated by pedalling, so they are managed by the physical ability of a rider but they do not travel very far. Electric scooters can travel up to 27 kilometres an hour.

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2. Blind Citizens NZ, which I am part of, and also the Royal NZ Foundation of the Blind have both been advocating for councils not to allow electric scooters on the streets because of the danger they represent. 3. There may need to be discussion on what areas the trial could take place because there are more blind people in the Windsor area compared to other areas of town.

His Worship the Mayor thanked Mrs Weston for taking the time to present to Council.

2.2 Southland Indoor Leisure Centre Charitable Trust

Neil Affleck from the Invercargill Licensing Trust was in attendance to speak to this item.

Mr Affleck reported that the Invercargill Licensing Trust was asking for renewal of the annual services contract for $400,000 plus on additional $300,000 for the upcoming year. The ILT had explained its application to Council on several occasions. It was about the issue of how this was managed and how the Southland Indoor Leisure Centre Charitable Trust Board managed the situation in relation to funding. The recommendation to Council was for Council to defer making a decision until the Spaces and Places Plan was completed, which he understood could be completed later this year or early next year. The Trustees were uncomfortable with that approach because they required some certainty around funding. Funding needed to be in place, so the Trust could make decisions knowing it was not going to run out of funding in the next couple of years. He highlighted the benefits of the Stadium to the city and how it was a significant asset for the city and its ratepayers.

In response to questions, Mr Affleck gave the following answers:

1. In the 2020-2022 years, the Stadium will need to trim its cloth to suit. In that three year budget there is an allowance for the maintenance plan. We have an 18 year maintenance plan, prepared by the Stadium but supported by Southern Quantity Surveyors. The forecast, even with the extra $700,000 every year from the City will mean that the Trust will be $165,000 in the red after the three years. Over that period we will spend close to $1.5 million on maintenance. 2. This is a $70 million Stadium that is a property that requires a significant level of funds to keep it operating. The Stadium takes in $30,000 of income every week from people using the Stadium and in addition to that we need community funding to keep it operational. 3. About 12,000 users per week use the Stadium for sporting events, which is a significant number. The events draw people from outside Invercargill, so it draws people from all over. 4. We approached Southland District Council for an increase in their funding some time ago, which they did.

His Worship the Mayor thanked Mr Affleck for taking the time to present to Council.

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2.3 Film Otago Southland

Mr Kevin Jennings was in attendance to speak to this item.

Mr Jennings said that Film Otago Southland was the regional film office. It was a shared service model with five councils from the South Island. Film Otago Southland was part of an international organisation and he was on the Board. He had the opportunity to be Chair of the Board for the global organisation of 300 film offices. To do that he needed to raise funding to pay his expenses to attend three meetings internationally per year. He approached Mayor Tim Shadbolt and Mr Richard King to discuss the opportunity and benefits of his role and two years ago it was agreed to extend the funding, which he received from Invercargill City Council for those first two years. He was requesting funding for the final year term, which was the reason why the Mayor had asked him to speak at today’s Council meeting.

In response to questions, the following answers were given:

1. For the first two year period, I received funding and an extension was requested, which was approved by the Mayor and Mr King and this is the final invoice being discussed tonight. 2. I have records of the payments and I have sent emails updating the Mayor and Mr King on how things were progressing. 3. I did an Annual Report that was sent to the Mayor and Mr King on individual events that I attended. The key benefit was the relationship with the film industry. 4. I have a Trust that I work for and they said that if I could raise the funding I was able to travel, so it was totally on the approval of funding being approved, which the Mayor and Mr King approved. 5. The situation today is awkward as we had a verbal agreement for funding. Updates were provided regularly. 6. SIT contributes to the ongoing funding of Film Otago Southland and they have a seat on the Board, so they are a partner in this. Venture Southland also contributes and also has a seat on the Board. Had I known that this payment was going to be questioned, I would have looked at other alternatives.

Cr Ludlow said that this item was considered in the public excluded session of the Finance and Policy in committee meeting. Given the level of discussion that had taken place in Public Forum, he was comfortable that the item be brought forward to the public section of the Council Meeting.

3. INTEREST REGISTER

Nil.

4. REPORT OF THE INVERCARGILL YOUTH COUNCIL

Youth Council representatives were in attendance to speak to the report.

Moved Cr Crackett, seconded Cr Soper and RESOLVED that the report be received.

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5. MINUTES OF THE MEETING OF COUNCIL HELD ON 16 APRIL 2019

Moved Cr Amundsen, seconded Cr Ludlow and RESOLVED that the minutes be approved.

6. MINUTES OF THE EXTRAORDINARY MEETING OF COUNCIL HELD ON 14 MAY 2019

Moved Cr Thomas, seconded Cr Soper and RESOLVED that the minutes be approved.

7. MINUTES OF THE MEETING OF THE BLUFF COMMUNITY BOARD HELD ON 13 AMY 2019

Moved Cr Esler, seconded Cr Lewis that the minutes be received.

Cr Thomas noted that Mr Hawkes had updated the Board on the Bluff Cycleway, which the City contributed funding to and it had not had an update on it. He wondered if Mr Hawkes could be invited to present to Council in the near future on this matter. He was more concerned about item 8.6, Southland DisAbility Enterprises, This matter was under a tender process and he noted that the Board discussed this in an open meeting and viewed its concern.

Cr Esler explained that the matter was raised and he attempted to get the discussion closed down but the Board Members were keen to note their concerns.

Cr Thomas suggested that the Chief Executive speaks to the Chairman of the Bluff Community Board regarding this matter when there was a tender process in place and Mrs Hadley indicated that she would do so.

In response to a question as whether the Bluff Community Board agenda was checked by Council staff before it was published, Mrs Hadley explained that it was not looked over by her but it was checked by staff. She was of the understanding that this item came from the floor and was received as what could be best described as “a bit of a chat’.

The motion, now being put, was RESOLVED in the affirmative.

8. MINUTES OF THE COMMUNITY SERVICES COMMITTEE – 13 MAY 2019

Moved Cr Abbott, seconded Cr Soper and RESOLVED that the minutes be received;

AND THAT

Council complies with its agreement with Environment Southland to provide public transport updates as detailed in that agreement;

AND THAT

Council reviews its process to ensure Super Gold patronage data is accurately reported.

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9. MINUTES OF THE REGULATORY SERVICES COMMITTEE – 14 MAY 2019

Mrs Hadley pointed out that the recommendation with regard to the Health and Hygiene Bylaw did not make sense. It should read, “Council approves the Health and Hygiene Bylaw be made operative on 1 July 2019”.

Moved Cr Thomas, seconded Cr K Arnold that the minutes be received;

AND THAT

Council approves the Health and Hygiene Bylaw be made operative on 1 July 2019’

AND THAT

The first review of the Bylaw be within 18 months of the operative date.

The motion, now being put, was RESOLVED in the affirmative.

10. MINUTES OF THE INFRASTRUCTURE AND SERVICES COMMITTEE – 20 MAY 2019

Moved Cr Thomas, seconded Cr K Arnold that the minutes be received;

AND THAT

The following recommendations be adopted:

1. Council approves that Hospice Southland be permitted temporary signage to advertise its funding event at the Te Rangi Bowling Club from 29 May 2019 to 19 July 2019;

2. Park and Reserves staff partner with Sport Southland to produce a Regional Spaces and Places Plan;

AND THAT

Open spaces (and Recreation) Strategy is developed through community engagement;

AND THAT

Parks and Recreation staff undertake a pilot project to activate a ‘play space’ alongside removal of old unsafe equipment and report back to Council on the outcomes;

AND THAT

Parks and Recreation staff develop a Tree Plan to ensure the proactive management of the city’s tree network; AND THAT

Parks and Recreation staff undertake a series of ‘quick win’ projects in Bluff until a Master Plan begins;

AND THAT

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Parks and Recreation staff review Surrey Park sports hub master planning.

3. Council approves that the Committee agrees that the proposed event will not impede traffic unreasonably;

AND THAT

As permitted under the Local Government Act 1974, (Section 342 and Schedule 10) the Committee approves the temporary road closures for these events for the times, dates and locations as specified.

4. Council approves NZ Post’s use of the Paxter vehicle on footpaths in the Invercargill urban area for a period of approximately five years concluding on 20 June 2024;

AND THAT

No licence is required, or fee or charge be placed by Council on NZ Post for this approval.

5. That in light of the importance to maintain the pedestrian walkway network, that the walkway between Gretna Street and Rimu Street (Tutukiwi Walkway) remains open;

AND THAT

Council reviews and considers additional lighting and signage for Gretna Street.

6. Council is supportive of the principle of Electric Scooters and a trial of Electric Scooters is approved within Invercargill (for up to six months unless extended), with a maximum of three companies being permitted to operate;

AND THAT

No Licence fee or charge is required during the trial when approving Licence to Occupy (for a business to operate Electric Scooters);

AND THAT

The results of the trial are reported back to Council for a decision for setting any future fee or charge.

7. Council ratifies the letter to the Minister of Conservation.

In response to a question for clarification on the Youth Council’s suggestion about the fee in relation to the electric scooter trial, Cr Crackett explained that because Council was accepting the process for a trial, a levy could be set as part of the process, due to the fact that it was trial period of up to six months.

Cr Thomas explained that Council staff were unsure as to how the process would take place but Council had allowed for up to three companies to make submissions on this matter. He believed that setting a fee for the trial period was not prudent because that could be done later on in the process.

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In response to a question as to whether consideration had been given to ensuring the new LED lights in Gretna Street conformed to international standards, Cr Pottinger explained the LED rollout for street lighting used 3,000k lighting, which was considered warm lights that most people used in their houses. At extremely busy intersections, they used 4,000k lighting, which were much cleaner.

The motion, now being put, was RESOLVED in the affirmative.

11. MINUTES OF THE FINANCE AND POLICY COMMITTEE – 21 MAY 2019

Moved Cr Ludlow, seconded Cr Abbott and RESOLVED that the minutes be received;

AND THAT

1. Council approves the Schedule of Forecast changes. 2. Council makes no comment on the Invercargill City Charitable Trust Draft Statement of Intent. 3. Council makes no comment on the IVEM Draft Statement of Intent. 4. Council makes no comment on the Southland Museum and Art Gallery Draft Statement of Intent.

Moved Cr Ludlow, seconded Cr Abbott and RESOLVED that the Film Otago Southland Invoice item be brought forward from Public Excluded Session into public meeting for discussion as a separate item under Finance and Policy.

Cr Ludlow took the meeting through the Film Otago Southland Invoice item.

Cr Pottinger said that from an audit perspective, he was concerned that there was no paper trail regarding the funding for the Film Otago Southland Invoice.

In response to a question as to whether the new SRDA entity would have the discretion to continue funding Film Otago Southland, Mrs Hadley explained that Venture Southland had been funding Film Otago Southland and this was over and above that. The SRDA would be able to make that choice themselves.

In response to a question as to whether Gore District Council and Southland District Council had contributed to Mr Jennings’ directors fees as well, Mrs Hadley explained that only Invercargill City Council contributed $18,000 for this purpose.

After discussions Cr Soper noted this was a stand-alone amount that had nothing to do with the annual budget that was contributed to by the various councils. It was termed in the document that Council had a “scholarship” for Mr Jennings to serve on the Board of Directors for the Association of Films Commission International AFCI. Council was the sole contributing Council for this scholarship. Council could not get into a position where it was informed without knowledge that there was an existing scholarship that Council did not have information about.

Cr K Arnold asked whether Mayor and Mr King had made other agreements to fund and support projects without a contract drawn out.

Note: Cr Soper raised a Point of Order and said that Cr K Arnold’s question was not relevant to the matter on the table.

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His Worship the Mayor said he did not mind having a look through his files.

Note: Cr K Arnold asked for this matter to be added to the Action Sheet.

Moved Cr Soper, seconded Cr K Arnold and RESOLVED that Council pays the Film Otago Southland invoice.

Note: Cr Thomas voted against the motion.

12. CIVIC FINANCIAL SERVICES LTD ANNUAL GENERAL MEETING

Mrs Harris Mitchell spoke to the report.

Moved Cr Thomas, seconded Cr K Arnold and RESOLVED that the proxy be given to the Chair;

AND THAT

Council approves voting on the re-election of Anthony Marryatt and Michael Hannan as directors,

Council approves voting on the company reducing the maximum number of directors from six to five, with effect from 1 July 2019;

AND THAT

The Civic Financial Services Annual Report to 2018 be received, which includes financial statements for the year ended 31 December 2018 and the report of the auditor therein;

AND THAT

Appointment and Remuneration of Auditor (pursuant to Section 207 of the Companies Act 1993 and Section 15 of the Public audit Act 2001) to hold office until the conclusion of the next Annual General meeting and to authorise the Civic Financial Services Directors to determine the remuneration for the auditor for the year.

13. REQUEST FOR FUNDING – SOUTHLAND INDOOR LEISURE CENTRE CHARITABLE TRUST

Mrs Hadley took the meeting through the report.

In response to a question as to what the timeframe was for completing the Spaces and Places Plan, Mrs Hadley explained that the plan would be developed over the rest of this year and be ready at the end of the year to early next year. She drew Council’s attention to the fact that Council did give another $300,000 to the Trust, which was still sitting in its bank account at this stage. She could not advise Council to transfer funds from Council’s bank account to a third party’s bank account where it was not going to be used in the foreseeable future.

Note: Cr Lewis declared a conflict of interest and sat back from the table.

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Moved Cr K Arnold, seconded Cr Soper that the report be received;

AND THAT

The request be referred to the Parks Manager, for consideration within the Spaces and Places Plan policy development which is to commence shortly;

AND THAT

The matter be reconsidered by Council after that Plan is received.

In response to a question as to where the funding for Southland Indoor Leisure Centre Charitable Trust came from under the Spaces and Places Plan, Mrs Hadley explained that the recommendation would come back to Council for consideration.

Comments against the recommendation were discussed as follows:

Cr Esler commented that after listening to Mr Affleck and the presentation at the Stadium, Council needed to pay the extra funding requested. When comparing the investment that Council had put in to the Library and Splash Palace, the funding contributed to the Stadium for the amount of good it did, was miniscule. In the interest of fairness, Council should be funding the Stadium at that higher rate rather than revisiting this issue every year.

Cr Biddle agreed with Cr Esler and said that she was looking at the community good and community wellbeing perspective. Council had an obligation to consider the wellbeing of its community. The facility was used by a wide range of people in the community and there were not many indoor venues left for people to share sports, entertainment and events. It was vital for Council to contribute the $700,000 so that the Stadium could continue its maintenance going forward. She wanted to move an amendment so that Council fund the $700,000 for 12 months, giving Council the time to go through the Spaces and Places Plan, as that was a fair compromise.

In response to a question as to what the impact of $300,000 on the rates, Mr Foster explained it was 0.6% on rates. In terms of what that did in the long- haul meant that it built $300,000 every year on the rates. It would be a one-off 0.6% and then it would stabilise at that point.

In response to a question as to what the impact on the rates for a $2.2 million budget for Don Street, Mr Foster explained they were not comparable because it was $300,000 per annum as opposed to a one-off consequence in terms of a budget blow out. Don Street was a one-off $2.2 million and the overall impact of it was half the effect of $300,000 over ten years.

Cr Biddle moved an amendment as follows:

Moved Cr Biddle, seconded Cr Pottinger that the report be received;

AND THAT

Council pays the additional $300,000 for the next financial year;

AND THAT

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The request for ongoing funding be referred to the Parks Manager, for consideration within the Spaces and Places Plan policy development which is to commence shortly;

AND THAT

That the matter be reconsidered by Council after that Plan is received.

The amendment was passed.

The substantive motion, now being put, was RESOLVED in the affirmative.

Note: Cr Soper voted against the motion and Cr Lewis abstained from voting.

14. SUBMISSION TO REMUNERATION AUTHORITY CHILDCARE ALLOWANCE FOR ELECTED MEMBERS

Mrs Harris Mitchell took the meeting through the report.

Moved Cr Ludlow, seconded Cr Crackett and RESOLVED that the report be received;

AND THAT

The suggested submission points, numbers one to six in Appendix 2 (A2611760), form the Council’s submission to the Remuneration Authority.

15. ADMINISTRATION REPORT

Mrs Harris Mitchell took the meeting through the report, which covered two items.

Royal Humane Society

Moved Cr K Arnold, seconded Cr Soper and RESOLVED that the report be received;

AND THAT

Council invites the Royal Humane Society of New Zealand Inc to submit an application to the Community Grants Committee for consideration at its next meeting.

Southland Warm Homes Trust

Moved Cr Biddle, seconded Cr A Arnold and RESOLVED that Council appoints Cr Soper to serve as a Trustee on the Southland Warm Homes Trust.

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16. JOINT CIVIL DEFENCE SERVICES AGREEMENT REVIEW

Mr McKay was invited to speak to this report.

Moved Cr Thomas, seconded Cr Abbott that the report be received;

AND THAT

Council: 1. Approves the updated Joint Civil Defence Services Agreement, which will take effect in July 2019 (exact date to be confirmed). 2. Authorises the Mayor and Chief Executive to sign the agreement on behalf of Invercargill City Council.

In response to questions, Mr McKay gave the following answers:

1. The proposal was put forward four years ago to use funding from the Emergency Management Southland Operational Reserve towards water tanks to provide the water needed for that purpose but that was put on hold during the discussions around the Stadium since 2010 and it was never reinstated. 2. There were always other options with regard to water supply but having a reserve for drinking water at the Stadium would be good.

The motion, now being put, was RESOLVED in the affirmative.

17. REGIONAL CLIMATE CHANGE IMPACT ASSESSMENT

Mrs Gare took the meeting through the report.

Moved Cr Amundsen, seconded Cr Crackett and RESOLVED that the report be received;

AND THAT

Council endorses the release of the report and associated communication messages.

18. NOTICE OF MOTION TO COUNCIL MEETING HELD ON 28 MAY 2019

Mr Cameron gave Council advice on this matter before the Notice of Motion was considered.

Note: Councillors Ludlow and Lewis declared a conflict of interest and refrained from commenting.

Cr Thomas explained that he would not be eligible for future appointment to Holdco as he had served nine years. This vote was for something that took effect after the elections. He was aware he had a pecuniary interest at the moment but he was voting on a policy of removing directors from Holdco.

Cr Pottinger spoke to the Notice of Motion.

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Moved Cr Pottinger, seconded Cr Biddle that:

1. Council resolves to exclude elected members from being directors on ICHL and its subsidiaries and associated joint ventures, as from the beginning of the 2019 triennium; 2. Council along with ICHL amends the relevant policies and constitutions to give effect to this, as from October 2019; 3. Council instructs ICHL to have in place new directors where required to take office at the start of the new triennium.

His Worship the Mayor said that he was aware that he had a conflict of interest, but felt that he was able to use the declaration from the Office of the Auditor General dated 24 May 2019.

In response to a question Cr Pottinger clarified Part A of the motion to exclude elected members from being directors, included elected members who wanted to apply as a director in their own right. If someone stood for Council, they wanted to be a councillor, if you wanted to be a Director that was what your role was.

Comments against the recommendation were as follows:

Cr K Arnold expressed concern Council had received a report from a Councillor who was openly biased against Holdco, and she questioned where the independent information was for this Council. Council had a desire to have skills based Board but Council was not skills based. Everyone came onto Council for the first time without any experience with no knowledge about the issues and were absolutely naïve and yet Councillors had the ability to direct the Holding Company and the skilled directors.

Cr Soper believed that if Council was voting on such a motion, it should be done as a holistic package until those major changes were included from 2016 were reversed. That may mean that Council put this on hold and asking the Chief Executive for a report or from Holdco but without some amendment she was not comfortable voting for the motion as it was.

Cr Thomas commented that some councillors did not realise the significance of what it was doing tonight. Council was taking away the protection of the company it owned. Council needed to protect its company by having Councillors on there. By voting for this motion, Council would be taking away the ability for Council to have someone around the Holdco table that had consistently returned a dividend on the Statement of Intent. Cr Pottinger alluded to the fact that Council may not give $2 million this year that was not set in stone. It was not poor performance by EIL, it was a reset by the Commerce Commission. Councillors needed to think carefully before voting for this motion.

Comments for the recommendation were as follows:

Cr Crackett said she had been waiting a long time for this to happen. Throughout the term she had seen an issue with conflicts of interest along with transparency and control.

Cr Abbott said he had advocated in every election campaign that Councillors should not be paid remuneration to be a director on a board. He believed that Councillors were paid sufficiently to be councillors; and he would like to think that Councillors had corporate experience at the board level. He supported the motion.

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Cr A Arnold supported the motion and said that he agreed with Cr Pottinger that if you wanted to be a Councillor, you were a Councillor. It meant that people did not need to leave the table because of conflicts.

In response to a question as to whether the Notice of Motion could or should be amended in relation to further matters, Mrs Hadley explained that Standing Orders stated that only the mover at the time the Notice of Motion was moved and with the agreement of the majority of those present at the meeting may alter a proposed Notice of Motion. Once it was moved and seconded, no amendments could be made to a Notice of Motion.

The motion was put and a show of hands was taken – seven voted for the motion and four voted against the motion.

The motion, now being put, was RESOLVED in the affirmative.

19. PROFESSIONAL SERVICES FOR CITY BLOCK DESIGN

Note: Cr Thomas declared a conflict of interest and left the meeting at 7.05 pm.

Moved Cr Amundsen, seconded Cr Soper and RESOLVED that this item be received as a major late item.

Mrs Hadley took the meeting through the report.

In response to a question as to why councillors would want to travel, Mrs Hadley said she was conscious that for some, concepts were merely that and sometimes it was easier to understand things when you saw them in operation. People learned in different ways and saw impacts in different ways.

In response to a question as to how much information was enough when making these sorts of decisions, Mrs Hadley explained that this proposal was a $180 million investment proposed by a group of different stakeholders. There was no such thing as too much information. Good governance required information to ask the powerful questions. The bulk of the community would be making submissions which would be based on their emotional response to the proposal. Council needed to be objective about this proposal.

Moved Cr Soper, seconded Cr Amundsen that the report ‘Professional Services – Advice on City Block’ be received;

AND THAT

An unbudgeted, initial amount of $200,000, being 1% of the proposed investment of $20 million, be set aside for the engagement of independent, professional advice for the City Block project;

AND THAT

The Chief Executive be requested to undertake the appropriate procurement process for urban design advice now, noting that there will be no significant expenditure before any investment decision is made by Council;

AND THAT

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Councillors indicate their interest in visiting other cities to appreciate the impact of design principles of malls on CBDs in those locations.

Note: Cr Esler left the meeting at 7.21 pm.

20. UNBALANCED BUDGET ANNUAL PLAN 2019/2020

Mr Booth took the meeting through the report.

Moved Cr Ludlow, seconded Cr Lewis and RESOLVED that the report be received;

AND THAT

The unbalanced budget proposed in the Final Annual Plan 2019/2020 is considered by Council to be prudent in the circumstances of Council’s current financial situation.

21. ADOPTION OF 2019/2020 ANNUAL PLAN

Mr Booth indicated that more work was required because the rates increase was now around 3.5%. The item was withdrawn for further work.

22. STATEMENT OF INTENT – HOLDCO

Mrs Hadley took the meeting through the report.

Moved Cr Abbott, seconded Cr Amundsen and RESOLVED that the report be received;

AND THAT

Council makes no comment on Invercargill City Council Holdings Limited Draft Statement of Intent.

23. PROPOSED CHANGES TO LOCAL GOVERNMENT NEW ZEALAND RULES

This item was held over until the next meeting.

24. ELECTED MEMBER TRAINING AND TRAVEL BUDGET

A copy of the budget was tabled and Mrs Harris Mitchell took the meeting through it.

In response to a question as to whether Cr Ludlow wanted to attend the LGNZ Conference, Cr Ludlow explained that he had indicated to the Chief Executive that he would like to attend the Conference but queried how that would be affect the budget.

In response to a question as to whether funding was set aside as a reserve for the LGNZ Conference, Mrs Harris Mitchell explained she would clarify that.

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Mrs Hadley suggested that this matter be left on the table until clarity was received and that information would be brought back to the Extraordinary Council Meeting next Wednesday.

Moved His Worship the Mayor, seconded Cr Soper and RESOLVED that the report be received.

25. COUNCIL REPRESENTATION AT LGNZ AGM

This matter was also left on the table until the Extraordinary Council Meeting.

26. MAYOR’S REPORT

The report was tabled and His Worship the Mayor took the meeting through it.

Moved His Worship the Mayor, seconded Cr Soper and RESOLVED that the report be received.

Note: Cr Biddle left the meeting at 7.42 pm and returned at 7.44 pm.

27. URGENT BUSINESS

27.1 Motor Vehicle Purchasing

Mrs Hadley took the meeting through the report.

Moved Cr Amundsen, seconded Cr A Arnold and RESOLVED that the report Motor Vehicle Purchasing be received;

AND THAT

The matter be dealt with at tonight’s Council meeting to allow the Council to start realising the benefits of participation in the All of Government purchasing scheme for motor vehicles as soon as possible.

Council was also given a summary of the discussions that the Risk and Assurance Committee had on this matter and Mrs Hadley answered questions for further clarity.

Note: Cr Amundsen left the meeting at 7.54 pm and returned at 7.56 pm.

Moved Cr Soper, seconded Cr Lewis and RESOLVED that the report be received;

AND THAT

Council notes the gains to be achieved by participating in the All of Government scheme;

AND THAT

The Council endorses entering into a Memorandum of Understanding to participate in the scheme;

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AND THAT

The Council endorses the approach that where the driver seeks to keep a vehicle beyond a typical 3-4 year, the total annual operating costs are analysed to ensure this does not financially disadvantage Council.

28. COUNCIL IN PUBLIC EXCLUDED SESSION

Moved Cr Crackett, seconded Cr Abbott and RESOLVED that the public be excluded from the following parts of the proceedings of this meeting, namely:

(a) Confirming of Minutes of the Public Excluded Session of Council 16 April 2019. (b) Receiving of Minutes of the Public Excluded Session of the Infrastructure and Services Committee – 20 May 2019. (c) Confirming of Minutes of the Public Excluded Session of the Finance and Policy Committee – 21 May 2019. (d) Invercargill City Holdings Limited. (e) Chief Executive Performance Review.

General subject of Reason for passing Ground(s) under each matter to be this resolution in Section 48(1) for the considered relation to each matter passing of this resolution

(a) Confirming of Enable any local Section 7(2)(i) Minutes – authority holding the Council information to carry on, 16 April 2019. without disadvantage, negotiations (including commercial and industrial negotiations)

(b) Receiving of Enable any local Section 7(2)(i) Minutes – authority holding the Infrastructure information to carry on, and Services without disadvantage, Committee negotiations (including 20 May 2019 commercial and industrial negotiations)

(c) Receiving of Enable any local Section 7(2)(i) Minutes – authority holding the Finance and information to carry on, Policy without disadvantage, Committee negotiations (including 21 May 2019 commercial and industrial negotiations)

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(d) Invercargill City Enable any local Section 7(2)(i) Holdings authority holding the Limited information to carry on, without disadvantage, negotiations (including commercial and industrial negotiations)

(e) Chief Protect the privacy of Section 7(2)(a) Executive natural persons, Performance including that of Review deceased natural persons

There being no further business, the meeting finished at 8.16 pm.

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MINUTES OF THE EXTRAORDINARY MEETING OF THE INVERCARGILL CITY COUNCIL HELD IN THE COUNCIL CHAMBER, FIRST FLOOR, CIVIC ADMINISTRATION BUILDING, 101 ESK STREET, INVERCARGILL ON WEDNESDAY 5 JUNE 2019 AT 5.00 PM

PRESENT: Sir T R Shadbolt, KNZM JP Cr R R Amundsen – Deputy Mayor Cr R L Abbott Cr A J Arnold Cr K F Arnold Cr T M Biddle Cr A H Crackett Cr I L Esler Cr G D Lewis Cr D J Ludlow Cr L F Soper Cr L S Thomas

IN ATTENDANCE: Mayor G Tong Mayor T Hicks Mrs C Hadley – Chief Executive Mr C McIntosh – Director of Works and Services Mr D Foster – Interim Director of Finance Mrs E Harris Mitchell – Manager Communications and Secretarial Services Mr A Cameron – Executive Officer Mr M Loan - Manager - Drainage and Solid Waste Ms D Peterson - Senior Waste Officer Ms H McLeod – Communications Advisor Ms P Nicolaou – Solicitor – Lane Neave Lawyers Mr M Russell – Southland District Council Ms L Kuresa – Governance Officer

1. APOLOGIES

Cr I R Pottinger (Mrs Hadley read out a statement from Cr Pottinger in relation to his apology for this meeting and also stating his conflict of interest with regard to the matter to be discussed by Council), and Cr K Arnold for lateness.

Moved His Worship the Mayor, seconded Cr Ludlow and RESOLVED that the apologies be accepted.

2. PUBLIC FORUM

2.1 Recycling Contract

2.1.1 Phil Burt

Mr Burt informed the meeting of the petition that 22,000 Invercargill residents had signed. The work carried out by the people employed by Southland DisAbility Enterprises formed an integral part of their lives, both emotionally and physically.

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Their jobs provided them with considerable pride and feelings of belonging to a supportive and social group. The loss of jobs would have a severe impact on the workers and their families. The outcome of the special needs workers losing their positions was extremely undesirable. Socially it would be very beneficial for Council to be seen by the public as being a caring, socially responsible and supportive entity. Southland DisAbility Enterprises had for many years provided Invercargill with not only a valuable work source but also a socially responsible form of special needs welfare, much admired by the public and many local organisations and sponsors.

His Worship the Mayor thanked Mr Burt for taking the time to present to Council.

3.1.2 Tony Stewart

Mr Stewart outlined how Southland DisAbility Enterprises had assisted his brother with his disability. His brother Paul started at Southland DisAbility Enterprises 27 years ago and that was where he developed good social skills and decent work ethics. He had developed life-long friendships as well as social relationships.

His Worship the Mayor thanked Mr Stewart for taking the time to present to Council.

3.1.3 Lynda Mooij

Ms Mooij tabled a copy of her submission and took the meeting through it. Her daughter was employed at Southland DisAbility Enterprises. Southland DisAbility Enterprises was more than just an employer, they were social engineers for their workers, offering additional opportunities outside of work. It was a job for adults with disabilities to get up in the morning, providing them with a purpose and an anchoring structure for their day.

His Worship the Mayor thanked Ms Mooij for taking the time to present to Council.

Note: Cr K Arnold joined the meeting at 5.17 pm.

4. INTEREST REGISTER

Nil.

5. NOTICE OF MOTION

Cr Biddle took the meeting through the Notice of Motion.

Moved Cr Biddle, seconded Cr Abbott that the WasteNet Tender item be brought into public for debate and decision making;

AND THAT

This excludes the financial and commercial information which may be restricted from public to be received in committee prior to the debate.

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Cr Abbott said that regardless of how Council voted on this matter, he would be asking for a division of how each Councillor voted. In the event that this matter went into public excluded session, he would be asking that a division be taken.

In response to a question as to how part of a contract could be discussed in public excluded session and not the other part, Cr Biddle explained that her motion was not to discuss the contract in public but to have the debate and decision making in public. She did not want to discuss the financials and tender applicants, she wanted the public to see how members debated and behaved over something of this importance.

His Worship the Mayor invited Paula Nicolaou, from Lane Neave, who had been appointed by WasteNet South and had a part in the preparation of all the documents to give legal advice on this matter. Ms Nicolaou had also been in consultation with Andrew Cameron from Council as it was important for Council to understand the processes.

Ms Nicolaou took the meeting through the legal process. This was a live tender process and councils were obliged to follow certain processes to keep the integrity clean and out of respect to all parties that had put in a tender. Information would be made public after the contract had been awarded. The risk to Council and all the parties involved, including the incumbent, was that if confidential information was discussed in open forum that could have legal consequences.

In response to a question as to what could be discussed in public, Ms Nicolaou explained that the one thing that Council needed to consider was that there were three councils involved in this decision. It was important that all councils discussed the same information, which councillors had been provided with. The issue was that it was hard to consider it without going into conditions and price.

Cr K Arnold appreciated the sentiment respectfully from everyone who had attended today’s meeting but equally she must respect the law and the process and the fact that Council could not have an open, honest and true debate if all the information was not discussed in its entirety. She did not support the motion. She was put in an awkward position where she was seconded onto the WasteNet Group at the last minute. She was confident the information that Council would be receiving today was robust and there was information that Council was privy to that would suggest that some of the sentiments were not well founded. She was proud to support the process.

In response to questions, the following answers were given:

1. There are processes that a council with good stewardship should follow with a commercial and competitive process. If Council does not follow that, there can be consequences. 2. The contract with Southland DisAbility Enterprises was a 16 year contract that split into two parts, two eight year terms and it was at the stage where the second eight years was contemplated. The contract has a roll over provision which was not exercised. In discussions at that time, Southland DisAbility Enterprises advised the WasteNet Group that a change of costs needed to be made. All parties recognised that the recycling market had been significantly affected due to China closing its borders to recyclables. The parties went through a discussion around what was termed “a claim for increases for the operating costs of the contract”, with respect to what the contract allowed.

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It became evident that the contract did not allow the increase that was being sought. The WasteNet Group and Southland DisAbility Enterprises sat down and looked and in those discussions it got to the point where WasteNet was not satisfied that it could explain the cost increase sought and reluctantly, both parties, Southland DisAbility Enterprises negotiating team and WasteNet’s negotiating team recognised that councils would be obliged to go to the market to look for proposals for that service. 3. It is still a live tender process so until the tender process is finished, the information can’t be released. The contract has not been awarded and these are processes that all councils have to follow. 4. If the process is not followed, councils could be liable for some real money under the tender process if it’s breached. All tenderers may claim the tender costs against the councils. If that process is not followed and if a party can prove they should have been awarded the contract, they can claim the full loss of damages. There is millions of dollars at stake here. 5. These rules and the process that councils are required to follow is set out in the tender documents. In those tender documents and putting them out to the public, councils were effectively saying that they are binding themselves to act in good faith in accordance with the terms and conditions. It’s the entire process which is required together because that’s what the tender document said. There is a process where information will be kept confidential, Council will make a decision and inform the parties and then the information will be released. It comes down to the core idea of behaving in good faith through the tender process.

Cr Biddle wanted to move an amendment for Council to move into public excluded session and for the final vote to be brought back into public to show transparency of Council.

Mr Cameron explained that Council had the option to declare what material was released from the meeting, taking into consideration all the factors. You could pass a resolution that the way the votes were cast be released.

His Worship the Mayor said that according to Standing Orders, once moved and seconded, no more amendments could be made to the Notice of Motion.

Note: A show of hands was carried out. Councillors who voted for the motion were councillors Biddle, Abbott, Crackett, Lewis, A Arnold and His Worship the Mayor.

Councillors who voted against the motion were Councillors Esler, Amundsen, Ludlow, Thomas, Soper and K Arnold.

His Worship the Mayor exercised his casting vote and voted for the motion.

The motion, now being put, was RESOLVED in the affirmative.

In response to a question as to whether another motion could be put forward, His Worship the Mayor explained that it had happened before and he could not see why that could not be done.

Moved Cr Biddle, seconded Cr Crackett that Council goes into public excluded session for discussion of financials and commercial information;

AND THAT

A show of hands be brought back to public meeting for the final vote.

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Note: Cr Soper declared an interest and sat back from the table.

The motion, now being put, was RESOLVED in the affirmative.

5. PUBLIC EXCLUDED SESSION

Moved Cr Amundsen, seconded Cr Ludlow and RESOLVED that the public be excluded from the following parts of the proceedings of this meeting, with the exception of Mayor Gary Tong, Mayor Tracy Hicks, Matt Russell and Paula Nicolaou namely:

(a) WasteNet Southland – Recyclables Acceptance Request for Proposal.

General subject of Reason for passing Ground(s) under each matter to be this resolution in Section 48(1) for the considered relation to each matter passing of this resolution

(a) WasteNet Enable any local Section 7(2)(i) Southland – authority holding the Recyclables information to carry on, Acceptance without prejudice or Request for disadvantage, Proposal negotiations (including commercial and industrial negotiations)

Note: The meeting moved back into public session at 8.45 pm.

6. WASTENET SOUTHLAND – RECYCLABLES ACCEPTANCE REQUEST FOR PROPOSAL

Moved Cr Thomas, seconded Cr Amundsen that Council adopts the recommendations of the Waste Advisory Group.

Note: A show of hands was carried out. Councillors who voted for the motion were Councillors Esler, Ludlow, Amundsen, Thomas and Crackett.

Councillors who voted against the motion were councillors Biddle, Abbott, Lewis, A Arnold and His Worship the Mayor.

His Worship the Mayor exercised his casting vote and voted against the motion.

The motion, now being put, was LOST.

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7. PROPOSED CHANGES TO LOCAL GOVERNMENT NEW ZEALAND’S RULES

Mrs Harris Mitchell took the meeting through the report.

Moved Cr Amundsen, seconded Cr Ludlow and RESOLVED that the report be received;

AND THAT

Council supports the four areas of proposed changes to the Local Government New Zealand Rules and that its delegates vote accordingly at the LGNZ AGM.

8. ELECTED MEMBER TRAINING AND TRAVEL BUDGET

Mrs Harris Mitchell took the meeting through the report.

Moved Cr Soper, seconded Cr Thomas and RESOLVED that the report be received;

AND THAT

Council approves Cr Amundsen and Cr Ludlow’s request to attend the LGNZ Conference in July 2019 in Wellington.

9. COUNCIL REPRESENTATION AT LGNZ AGM

Mrs Harris Mitchell took the meeting through the report.

Moved Cr Lewis, seconded Cr Abbott and RESOLVED that the report be received;

AND THAT

His Worship the Mayor is registered as Council’s Presiding Delegate and Mr Cameron McIntosh is registered as Council’s other Delegate at the Local Government New Zealand AGM;

AND THAT

Council has approved sending Cr R Amundsen and Cr D Ludlow to the Conference and they be registered as Other Delegates, with voting rights.

Cr Thomas requested that Council should move into Public Excluded Session again to hear from Mayor Tong and Mayor Hicks regarding Southland District and Gore District Councils decision on the Recyclables Acceptance Request for Proposal as WasteNet was a joint committee of all councils.

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10. PUBLIC EXCLUDED SESSION

Moved Cr Thomas, seconded Cr Soper and RESOLVED that the public be excluded from the following parts of the proceedings of this meeting, with the exception of Mayor Gary Tong, Mayor Tracy Hicks, Matt Russell and Paula Nicolaou namely:

(a) WasteNet Southland – Recyclables Acceptance Request for Proposal. .

General subject of Reason for passing Ground(s) under each matter to be this resolution in Section 48(1) for the considered relation to each matter passing of this resolution

There being no further business, the meeting finished at 9.10 pm.

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37 Council - MINUTES OF THE MEETING OF THE BLUFF COMMUNITY BOARD HELD ON 10 JUNE 2019

MINUTES OF A MEETING OF THE BLUFF COMMUNITY BOARD HELD IN THE BLUFF MUNICIPAL CHAMBERS, GORE STREET, BLUFF ON MONDAY 10 JUNE 2019 AT 7.00 PM

PRESENT: Mr R Fife (Chair) Mrs W Glassey Mrs G Henderson Mr G A Laidlaw Mrs P Young Cr I L Esler

IN ATTENDANCE: Cr A J Arnold Cr L F Soper Mr R Pearson – Roading Manager Ms M Frey – Interim Parks Manager Mrs N Allan – Service Centre Manager Mr L Beer – Bluff Publicity/Promotions Officer Ms L Kuresa – Committee Secretary

2. APOLOGY

Nil.

3. PUBLIC FORUM

3.1 South Port Update

Nigel Gear, South Port Chief Executive Officer, Geoff Finnerty, Jamie May and Frank O’Boyle from South Port were in attendance to speak to this item.

A report on the Bluff Boat Ramp, the Maritime Museum Jetty and the Town Wharf – Fuel Berth Upgrade was tabled and Jamie May took the meeting through it.

Maritime Museum Jetty

In response to questions, the following answers were given:

1. We want to work with the community to talk about issues and update the Board on important projects. 2. The problem is we haven’t been maintaining the jetty and we can’t guarantee the safety of the structures. It was a liability as it is. 3. We would like to think that some of the local businesses other than South Port would be part of the process to find a solution.

Town Wharf-Fuel Berth Upgrade

4. Noise will be from 8.00 am to 6.00 pm but nothing outside those hours. Depending on what method they use, there may be a few days of high driving but then may be nothing for a while. 5. Foreshore Road will be closed for up to 18 months, which is the duration of the project. It’s not the whole of Foreshore Road, it’s about a metre section on Foreshore Road off the wharf.

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6. As soon as we have a contractor on board a public meeting can be held so that the Bluff residents can ask questions for clarity. 7. As part of the upgrade, the bitumen pipeline will be moved to the east end. Due to the age of the wharf and because we are upgrading the east end, it makes sense to have it all consolidated at that end. The west end will not be able to take ships for much longer without doing more work.

The Chairman thanked the representatives from South Port for taking the time to present to the Board on these very important matters.

4. INTEREST REGISTER

P Young informed the meeting that due to the fact that she had recently retired, she was no longer the Manager of Awarua Whanau Services, a member of the Maori Advisory Group for Invercargill Police, a member of the Children Protection Panel Oranga Tamariki or a member of the Governance for Southland Help.

Moved W Glassey, seconded G Laidlaw and RESOLVED that the report be received and that the Interest Register be updated.

5. MINUTES OF MEETING HELD 13 MAY 2019

Moved W Glassey, seconded Cr Esler and RESOLVED that the minutes be accepted as a true and correct record.

6. MATTERS ARISING

6.1 Letter to NZTA

The Chairman reported that the letter would be sent out before the end of this week.

6.2 Bluff Vision Statement Drop-off

The Chairman reported that a drop-off to all Bluff resident mailboxes would be carried out before the end of this month.

7. REPORT OF THE PUBLICITY/PROMOTIONS OFFICER

Moved G Henderson, seconded W Glassey that the report be received.

Mr Beer took the meeting through the report.

P Young commented that the Bluff Oyster and Food Festival was a success and Mr Beer agreed that it was a successful festival due to the weather conditions.

The Board agreed that the Bluff Oyster and Food Festival was not only good for Bluff but also for the whole of Southland. The charter flights provided a package for people attending the Festival on Friday night and flew out on Sunday night, which meant people stayed longer.

The motion, now being put, was RESOLVED in the affirmative.

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8. ACTION SHEET

Moved Cr Esler, seconded G Henderson that the report be received.

Mr Pearson and Ms Frey were in attendance to take the meeting through the report.

In response to a question as to how often the lawn was mowed on the berm from the Memorial around to Stirling Point, Mr Pearson explained it was mowed three times a year. It was maintained as a rural road because New Zealand Transport Agency was not interested.

In response to a question as to who was contracted to mow that area, Mr Pearson explained it was done through a Fulton Hogan contract and it was sub-contracted as part of the Cleanways business.

W Glassey felt frustrated that this was her second term as a Board Member and Bluff residents had been asking the Board about the issues around the town, but nothing was done about it. She said it was either New Zealand Transport Agency, the Council or someone else’s problem but nobody was taking responsibility. Something needed to be done for Bluff because the residents paid their rates. She wanted to see a list of the 200 properties that the Council was mowing its berms around Bluff.

Mr Pearson informed the Board that a meeting was planned with the commercial boat ramp users that Mr O’Boyle spoke about earlier.

Ms Frey reported that she went to Ocean Beach grounds and noted that the bottom field was well maintained but the upper field was getting wilder, which she did not think was a bad thing. She asked for the Board’s views were on this matter.

The Board discussed the matter and informed the meeting that there had not been a lot of feedback, except that there were not enough parking spaces on Kirk Crescent. It was also narrow and there was talk about moving the gate up to where the paddock was, so that people could not drive onto the paddock. People commented that if the accessibility to that area was improved, more people would use it.

G Henderson spoke about signage and gave Mr Pearson photos of different signage that could be used in Bluff that she came across while in Hamilton.

The Chairman requested costings to get the Stirling Point area around the Memorial mowed every two weeks compared with it being done three times per year.

The motion, now being put, was RESOLVED in the affirmative.

9. CHAIRMAN’S REPORT

9.1 Parks and Recreation Workshops

The Chairman thanked Mrs Young, Mrs Henderson and Mr Laidlaw for attending these workshops and invited them to give a verbal report.

40 Council - MINUTES OF THE MEETING OF THE BLUFF COMMUNITY BOARD HELD ON 10 JUNE 2019

Ms Frey reported that the Parks and Recreation Workshops were well attended and received. There were a lot of good things coming through around communication partnerships and with that came better ways of funding projects going forward.

9.2 Ideas for the Kiosk

Mr Laidlaw had attended and he said it was well attended with a lot of ideas put forward by Bluff residents.

Moved R Fife, seconded W Glassey and RESOLVED that the report be received.

10. URGENT BUSINESS

10.1 Omaui Track

Cr Esler reported that a helicopter had dropped gravel on the Omaui track two weeks ago and he was now looking for a group to form a working bee to shift the gravel.

10.2 World Oceans Day

Cr Esler reported that he had advertised a World Oceans Day, which was attended by a handful of people. He was amazed at the incredible richness of the marine environment in Bluff because this was the coldest time of the year but there was still an amazing assortment of natural history in that area.

There being no further business, the meeting finished at 8.08 pm.

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41 Council - ADOPTION OF 2019/20 ANNUAL PLAN

TO: COUNCIL

FROM: DALE BOOTH – FINANCIAL SERVICES MANAGER

DATE: THURSDAY 27 JUNE 2019

ADOPTION OF 2019/20 ANNUAL PLAN

SUMMARY

This report is to present the Annual Plan for the 2019/20 financial year.

RECOMMENDATIONS

That the report ‘Adoption of 2019/20 Annual Plan’ be received;

And that

Council adopts the 2019/20 Annual Plan as attached in Appendix One.

IMPLICATIONS

1. Has this been provided for in the Long Term Plan/Annual Plan? This is the final stage of the 2019/20 budget setting process. 2. Is a budget amendment required? No 3. Is this matter significant in terms of Council’s Policy on Significance? No 4. Implications in terms of other Council Strategic Documents or Council Policy? No 5. Have the views of affected or interested persons been obtained and is any further public consultation required? At its meeting on 26 March 2019, Council determined that formal consultation was not required for the 2019/20 Annual Plan. 6. Has the Child, Youth and Family Friendly Policy been considered? Council considers this and all policies when determining the content of the Annual Plan.

ADOPTION OF THE 2019/20 ANNUAL PLAN

Annual Plans are produced in the two years between the adoption of Long-term Plans. The Annual Plan implements the Long-term Plan and provides a budget for the next financial year. The 2019/20 Annual Plan is the second year of the 2018-2028 Long-term Plan and identifies differences between what was included in the Long-term Plan and what is now intended for the 2019/20 financial year.

42 Council - ADOPTION OF 2019/20 ANNUAL PLAN

In 2014 the Local Government Act 2002 (the Act) was amended to assist councils to reduce development time and remove unnecessary duplication in the preparation of information and consultation processes. The Act now provides that consultation is not required if the plan “does not include significant or material differences from the content of the long-term plan for the financial year to which the proposed annual plan relates”.

The draft 2019/20 Annual Plan is attached as Appendix One for Council’s consideration.

The rate increase has been set at 3.50% across all rates, meaning that all properties (which have not changed in value during the past 12 months) will received a 3.50% rates increase. Growth within the rating based has been factored into the final rates revenue calculation meaning total rates revenue will increase by 4.28%. Rates revenue includes both revenue set by rates as well as revenue collected from rates penalties. The rates increase of 3.50% is above the Long-term Plan projected rates increase of 3.14%. On 28 May 2019, Council determined to grant an additional $300,000 to the Southland Indoor Leisure Centre Charitable Trust in the 2019/20 financial year. The additional rates reflect the increased funding included in the Annual Plan for the Southland Indoor Leisure Centre Charitable Trust.

The capital work programme is largely unchanged from year two of the Long-term Plan, with capital spending increasing from $33.1m to $39.2m. This includes some minor changes to the programme which are outlined within the Annual Plan. The principle reason for this remains the carry forwards from the 2018/19 year or prior which have been highlighted in each of the previous quarterly reports. The changes in the capital expenditure are reflective of the timing of the capital programme, rather than actual changes in the capital programme.

On 28 May 2019 Council resolved to adopt an unbalanced budget. The inclusion of additional funding for the Southland Indoor Leisure Centre Charitable Trust has not changed this position. It remains prudent for Council to operate an unbalanced budget for the 2019/20 year.

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43 Council - ADOPTION OF 2019/20 ANNUAL PLAN

2019/20 Annual Plan

44 Council - ADOPTION OF 2019/20 ANNUAL PLAN

45 Council - ADOPTION OF 2019/20 ANNUAL PLAN

3 Mayor’s Comment

4 Chief Executive’s Comment

5 Readers’ Guide

6 Major projects for 2019/20

7 Rates Overview

8 Financial Overview

10 Refinements of the Annual Plan 2019/20

Funding Impact Statement page 11

12 Rating Policy and information

18 Rating Tables

36 Funding Impact Statement

Financial Management page 39

40 Prospective Financial Statements

46 Schedule of Reserves

47 Benchmarks

50 Prospective Statement of Accounting Policies

ContentsContents1

46 Council - ADOPTION OF 2019/20 ANNUAL PLAN

2019/20 2 Annual Plan

47 Council - ADOPTION OF 2019/20 ANNUAL PLAN

Mayor’s Comment

Invercargill needs to promote itself as an innovative, vibrant city. At present, we are undergoing major projects that will improve our basic infrastructure. These improvements will create a solid foundation for a wide range of exciting initiatives.

One of our major challenges will be the threat to our for the ‘Free Independent Travellers’. Our network environment. The younger generation are marching in of world class sporting facilities helps us to attract the streets and demanding that Councils should face numerous events to our region. The iconic Burt Munro the issues relating to Climate Change. All over the Challenge and Bluff Seafood and Oyster Festival are South Pacific, small nations such as New Zealand are just two examples. The Bill Richardson Transport World facing extensive damage from storms, slips and rising otherwise known as the Truck Museum along with the sea levels. Dozens of bridges around Southland are Motorcycle Mecca and E Hays & Sons will provide more starting to collapse and although most of the damage upmarket attractions for those interested in heritage is occurring in neighbouring territorial authorities there wheels. There are also specialist displays at the Bluff will be collateral damage to milk processing plants Maritime Museum and the Awarua Communications within our city borders if this trend continues. Museum.

Now for the good news. In a few weeks large jets will We have undertaken many attempts at urban renewal be flying on regular return flights from Invercargill to but the inner city development spearheaded by HWCP Auckland. This is the longest jet service within New and referred to as The Block is by far the most bold Zealand and will dramatically improve the connectivity development Council and the private sector have been between the biggest city in the North Island and the committed to in recent decades. The residents and rate third biggest city in the South Island. It should help us payers of Invercargill can most certainly look forward to attract over 10,000 new citizens to our city. Already an exciting decade. house prices are improving and large shopping retailers such as Kmart should be open by Christmas. Tourism is now considered to be New Zealand’s biggest export earner and Invercargill is firmly entrenched as a hub

48 Council - ADOPTION OF 2019/20 ANNUAL PLAN

Chief Executive’s Comment

In 2018 Council worked with our community to develop the Long-term Plan looking out to 2028. For the 2019/20 year there are no significant changes to what we put forward to you as part of the Long-term Plan process.

As a result, we did not hold a formal consultation The four community well-beings have been re- process. This Annual Plan does not go into detail about introduced to the legislation outlining Council’s purpose everything Council will be doing in the 2019/20 year, and role within the community. This acknowledges that for this information you will need to look at the 2018- achieving the aspirations of the community requires 2028 Long-term Plan on our website. an economic, social, cultural and environmental perspective. As a Council we will continue to work Council continues its commitment to the maintenance with you in the community to ensure we are delivering and development of our core infrastructure. In doing the activities and services that you desire in the most so, a number of projects are being carried through from efficient and affordable way. prior years and this is increasing the overall capital works programme scheduled for 2019/20. Council has I am looking forward to another positive year, building also made changes to the timing of some projects; the on our achievements and improving the quality of life Living Dinosaurs project has been deferred to 2021/22 that we all enjoy here in the Deep South. to align with the Museum Redevelopment project.

The efficiency and effectiveness of our service delivery remains a top priority, and as such, $1 million has been allocated to begin an IT strategy that will review and update our key software systems. It is anticipated that these changes will have an ongoing positive impact on how we deliver our services, and how you in the community can engage with Council.

2019/20 4 Annual Plan

49 Council - ADOPTION OF 2019/20 ANNUAL PLAN

Readers’ Guide

This Annual Plan is much more concise than previous Annual Plans. The information below has been provided to assist you with understanding Council’s planning and reporting cycle and to direct you to the right document to find the information that you are looking for.

Long-Term Plan Annual Plan The Long-term Plan (LTP) sets out Council’s priorities for An Annual Plan is developed in the two years between the next ten years and how we will promote the current LTPs, showing in detail any changes to what was and future interests of the Community. It is based on a included in the LTP. The purpose of the Annual Plan is to set of assumptions of how our future will look. The LTP contain the budget for the 2019/20 year and to identify is reviewed every three years to ensure that it remains any significant differences between what was proposed relevant and reflects changes in the City, the economy in the 2018-28 LTP and what is now planned for the and the priorities of the Community. The LTP includes 2019/20 year. The Annual Plan doesn’t repeat any the services that Council will provide, the projects that information that is included in the LTP so you will need to we will undertake, the cost of doing the work, how it will refer to the 2018-28 LTP for further information. be paid for and how we will measure our performance. This Annual Plan covers the year from 1 July 2019 to 30 Our current LTP was adopted in June 2018 and covers June 2020. ten years up until 2028.

The Long-term Plan is available on Council’s website, Annual Report https://icc.govt.nz/public-documents/long-term- The Annual Report explains how the Council has plan-2018-2028/, or for reference at the Invercargill progressed in achieving its planned projects, services Public Library or Bluff Service Centre and Library. and financial results and is produced at the end of each Our LTP outlines our anticipated levels of service for the financial year. 2019/20 year. We believe we are on-track for achieving The most recent Annual Report is for the 2017/18 year. these levels of service and delivering what we said we It can be found on Council’s website www.icc.govt.nz , would in our activities. Take a look at the Activity Section or for reference at the Invercargill Public Library or Bluff of the LTP to find out more about what we are delivering. Service Centre and Library.

50 Council - ADOPTION OF 2019/20 ANNUAL PLAN

Major Projects for 2019/20

Core Infrastructure Projects

Roading reconstruction and sealing renewals Footpath $3.5m renewals $1.5m Completion of Two lane conversion of LED and 11yr Don Street and right hand upgrade street turn onto Esk Street lighting projects $1.7m $2.0m

Water supply Sewerage Stormwater pipe network pipe network pipe network renewals renewals renewals $6.2m $1.9m $2.6m

The capital programme is continuously reviewed by Council and projects can be subject to changes in timing. The overall capital programme is still expected to be delivered over the period of the Long-term Plan 2018-28, with some projects naturally being deferred to future years as priority is given to other work, or funding requirements change.

2019/20 6 Annual Plan

51 Council - ADOPTION OF 2019/20 ANNUAL PLAN

Rates Overview Rates Overviewincrease every rating unit can 3.50% expect to pay in 2019/20 3.50% increase every rating unit can expect to pay in 2019/20 3.50% increase every projected rating unit can expectrates to revenue pay in 2019/20 collection (including rates penalties) $63.7 million $63.7 million projected rates revenue collection (including rates penalties) $63.7 million projected rates revenue collection (including rates penalties) All Invercargill City Council ratepayers can expect a 3.50% increase to their rates All Invercargillassessment City Councilin 2019/20. ratepayers can expect a 3.50%All Invercargill increase City to their Council rates ratepayers assessment can in expect a 3.50% increase to their rates assessment in 2019/20.This is higher than the 3.14% increase 2019/20. projected in the Long-term Plan 2018- This is lower than the 3.14% increase projected in theThis Long-term 2028.is lower On-going than Plan the 2018-2028. 3.14% reviews increase On-goingof Council projected reviews in ofthe council Long-termoperations operations Plan have 2018-2028. has delivered delivered On-going additionaladditional reviews savingsof councilsavings above operations above the savings thehas delivered savingstargets set targetsadditional in the set in Financialsavings above Strategy the ofsavings the Long-term targets set Plan. in the Financialthe FinancialStrategy of Strategy the Long-term of the Plan. Long-term Plan. This has been off-set by an increase of $300,000 in the grant to the Southland Indoor Leisure Centre Charitable Trust above Long-term Plan levels.

Total rates revenue will increase from $61.1m to $63.3m,TotalTotal rates an rates revenue increase revenue will of 3.6%. increase will increase from $61.1m from to $63.3m, an increase of 3.6%. $61.1m to $63.7m, an increase of 4.28%. Existing rating units will generate $62.2m rate revenueExistingExisting rating for the ratingunits 2019/20 will units generate year. will generate $62.2m rate revenue$62.5m for the rate 2019/20 revenue year. for the 2019/20 Growthyear. within the city will create additional rating unitsGrowth or withinwill change the city some will existing create additionalrating valuation rating forunits someGrowth or will properties. change within some theThis existingcitygrowth will willrating create generate valuation an for some properties. This growth will generate an additionaladditional $0.4m rating rates revenue. units or will change additional $0.4m rates revenue. existing rating valuation for some PENALTIESproperties. This growth will generate an RatepayersPENALTIES who do not pay by set payment dates will incurRatepayersadditional rate penalties, who do $0.5m not which pay ratesis by estimated set revenue.payment to generate dates will $0.7mincur rate rates penalties, revenue which is estimated to generate $0.7mPenalties rates revenue Ratepayers who do not pay by set payment dates will incur rate penalties, which is estimated to generate $0.7m rates revenue.

52 Council - ADOPTION OF 2019/20 ANNUAL PLAN

Financial Overview

2018/19 2019/20 2019/20 Long-term Plan Long-term Plan Annual Plan $,000 $,000 $,000

Rates revenue (GST inclusive) * 60,405 62,299 63,678

Rates revenue change + 4.91% 3.14% 4.28%

Rates revenue (GST exclusive) * 52,526 54,173 55,372

Total revenue 93,264 98,426 99,361

Operating expenditure 96,862 99,076 99,550

Operating surplus/(deficit) (3,598) (650) (189)

Total comprehensive revenue & expense 43,355 293 754

Total assets 993,790 1,001,200 979,506

Total liabilities (excluding borrowings) 15,509 15,640 16,523

Borrowings 99,866 106,852 90,700

Total equity 878,415 878,708 872,283

* Rates revenue for the 2019/20 Annual Plan includes rates penalties. The Long-term Plan 2018/19 and 2019/20 comparsion figures excludes rates penalites. + Rates revenue change calculation compares the 2019/20 Annual Plan including rates penalties to the Long-term Plan 2018/19 plus rates penalites.

2019/20 8 Annual Plan

53 Financial Overview

2018/19 2019/20 2019/20 Long‐term Plan Long‐term Plan Annual Plan $,000 $,000 $,000 Rates revenue (GST inclusive) * 60,405 62,299 63,678 Rates revenue change + 4.91% 3.14% 4.17%

Rates revenue (GST exclusive) * 52,526 54,173 55,372 Total revenue 93,264 98,426 99,361 Operating expenditure 96,862 99,076 99,550 Operating surplus/(deficit) Council - ADOPTION OF 2019/20 ANNUAL(3,598) PLAN (650) (189) Total comprehensive revenue & expense 43,355 293 754

Total assets 993,790 1,001,200 979,506 Total liabilities (excluding borrowings) 15,509 15,640 16,523 Borrowings 99,866 106,852 90,700 Total equity 878,415 878,708 872,283

* Rates revenue for the 2019/20 Annual Plan includes rates penalties. The Long‐term Plan 2018/19 and 2019/20 comparsion figures excludes rates penalites.

+ Rates revenue change calculation compares the 2019/20 Annual Plan includes rates penalties to the Long‐term Plan 2018/19 plus rates penalites.

~ The group of activities called "Social & Cultural" includes Museum, Housing Care Services, Libraries and Archives, Parks, Cemeteries, Pools, Passenger ~ The group of activities calledTransport & Regional Heritage “Social and Cultural” includes Museum, Housing Care Services, Libraries and Archives, Parks, Cemeteries, Pools, Passenger Transport and Regional Heritage. ^ The group of activites called "General" includes Arts and Creativity Invercargill, Living Dinosaurs project, City Centre ^ The group of activities called “General” includes Arts and Creativity Invercargill, Living Dinosaurs project, City Centre Revitalisation, Community Develop Revitalisation, Community Development,ment, Specialised Community Se Specialised Communityrvices, Regional Development, Investement Property, Services, Regional Development, Investment Property, Investements, Public Toilets, Ha Investments, Public Toilets, Hallslls and Theatre Services, Democ and Theatre Services, Democraticratic Services and Support Services. Services and Support Services.

54 Council - ADOPTION OF 2019/20 ANNUAL PLAN

Refinements of the Annual Plan 2019/20

Pools Water Supply Projects “Completion of the new Hydro “Completion of Water Tower slide at Splash Palace strenghtening carried across (+$1.5m capital)” (+$1.3m capital)” from 2018/19 Long-term Plan Roading Roading “Completion of the LED street “Upgrade of on-street parking lighting renewal and 11 year meters across the city lighting upgrade projects (+$0.8m capital)” (+$1.5m capital)”

New projects & changes to existing plans

Investment Property Specialised Community Service “Grant increase to Southland Indoor “ Completion of the Investment Property Leisure Centre Charitable Trust for at 20 Don Street Maintenance of Stadium Southland (+$1.8m capital)” (+$0.3m expenditure)”

Roading Investments “Lower dividend payout “Conversion of Don Street indicated by Invercargill City Holdings between Dee and Kelvin Street to two lane Limited (HOLDCO). This will reduce and introduction of a right hand turn into the cashflow pressure HOLDCO are Esk Street’s one lane system. expecting in the short to medium term. (+$1.7m capital)” (-$1.2m revenue)”

Roading Information Services “Additional New Zealand Transport “Commencement of IT strategy to Agency subsidy for footpath renewals review and update key software (+$1.0m revenue)” systems (+$1.0m capital)”

Projects Living Dinosaurs deferred “Living Dinosaurs project deferred to 2021/22 to align with museum redevelopment project (-$5.0m capital and - $2.5m revenue)” to future years

2019/20 10 Annual Plan

55 Council - ADOPTION OF 2019/20 ANNUAL PLAN

The Funding Impact Statement is made up of three parts:

• Rating policy information for 2019/20

• Rating samples for 2019/20

• Funding Impact Statement - Invercargill City Council for 2019/20

The Funding Impact Statement should be read in conjunction with the Revenue and Financing Policy.

Figures in this statement are GST inclusive unless stated.

Funding Impact Statement

1111

Council - ADOPTION OF 2019/20 ANNUAL PLAN

Rating policy and information for 2019/20

The following rates will be set by Council for the financial year commencing 1 July 2019 and ending 30 June 2020.

General Rate

Invercargill City Council charges a general rate. The rate The general rate is charged differentially based on the is charged based on the capital value of the Rating Unit. classification of the land following application of the definitions in the Rating Valuation Rules 2008. Rural The general rate is to fund the activities of Emergency -Farming is defined as a Rating Unit greater than 18Ha. Management, Grants, Total Mobility, Public Toilet, Civic Theatre, Democratic Process, Destination Marketing, In order to maintain an equitable rating impact and Enterprise, Community Development, other support preserve the relationship which exists between services and 15% of both street lighting and footpaths. residential, rural, commercial, utilities and large It is based on the capital value of that rating unit. industrial rating units, differentials have been applied.

The differentials are set out in the table below.

Differentials applied in setting rates %

Residential Base Rate 100.00

Residential – Multi Units Base Rate 100.00

Commercial Base Rate 100.00

Industrial Base Rate 100.00

Rural-Farming Base Rate -25.00

Utilities Base Rate 100.00

Differentials are applied by Council in the following ·· A property with a +25% differential would have manner whether the rate is a fixed dollar or a 100% plus 25%, or 125% of the $100 fixed charge, percentage of the capital value. A guide to the that is $125 applied to it. application of differentials to a fixed charge of A differential of -100% means that the charge does not $100 is set out below: apply to that property. ·· A property with a 100% differential would have 100% of the fixed charge, that is $100 applied to it;

·· A property with a -25% differential would have 100% less 25%, or 75% of the $100 fixed charge, that is $75 applied to it; and

2019/20 12 Annual Plan

57 Council - ADOPTION OF 2019/20 ANNUAL PLAN

Targeted Rate

Invercargill City Council charges various targeted rates. used or inhabited part of the rating unit (SUIP) Targeted rates are charged: using the capital value adjusted for each unit; and/ or ·· per rating unit that falls within the relevant definition set out under the General Rules; and/or ·· for non-residential water, sewerage and drainage the rate is adjusted based on capital value as per ·· for the Residential Multi Unit category where below. stated they are charged on the basis of separately

Less than $50,001 Base Fixed Charge -20

From $50,001 - $100,000 * Base Fixed Charge 100

$100,001 - $200,000 Base Fixed Charge +20

$200,001 - $400,000 Base Fixed Charge +40

$400,001 - $1,000,000 Base Fixed Charge +100

$1,000,001 - $3,000,000 Base Fixed Charge +200

$3,000,001 - $5,000,000 Base Fixed Charge +300

$5,000,001 + Base Fixed Charge +400

* Base rate

SUIP is defined as any part of a rating unit separately • the provision or availability to the land of a service occupied by the owner or any other person who has the provided by, or on behalf of, Invercargill City Council; right to occupy that part by virtue of a tenancy, lease, and/or licence or other agreement. • location The targeted rates are charged differentially based on: • the Council will not be inviting lump sum • the use to which the land is put; and/or contributions in respect to any targeted rates.

Funding Impact Statement 13

58 Council - ADOPTION OF 2019/20 ANNUAL PLAN

Additional Rating Policies In addition to the Policy and method of collecting rates as Industrial outlined over the page. The following additional policies Industrial Property is subject to a differential to the effect will also be applied. that the maximum value for the property is $25,000,000.

Rating of Utilities Serviceable Rating Unit Utilities will be charged only the following rates: Council has determined that a vacant serviceable rating unit is a property where the closest property boundary is ·· General Rate less than:

·· Regulatory Services Rate ·· 100 metres from a water access point; or

·· Roading Rate ·· 30 metres from a sewerage access point; or

·· Parks and Reserves Rate ·· 30 metres from a drainage access point; and

·· Cemeteries Rate it is not impracticable to access the relevant service. Council has determined that a serviceable rating unit, · · Libraries Rate on which a building is erected, is a property where the

·· Pools Rate building is less than · ·· Regional Heritage Rate · 100 metres from water; or · ·· Business Development · 60 metres from sewerage; or · ·· General Waste Management · 60 metres from drainage; and

All utilities are rated at their full capital value. it is not impracticable to access the relevant service.

Rating of Non-Rateable Land Vacant Rating Units Rating units which are deemed to be non-rateable under Vacant rating units where services are available but not the Local Government (Rating) Act 2002 will be rateable connected will be charged 50% of the water, sewerage and for water, sewerage and refuse collection where these drainage rates. services are provided (Section 9 of that Act). These rating units will be assessed in the same manner as other ratepayers and according to their residential or non-residential status. Churches, community groups, residential homes and pensioner housing will be classified as residential for this purpose. All other non‑rateable rating units will be classified as non-residential.

2019/20 14 Annual Plan

59 Council - ADOPTION OF 2019/20 ANNUAL PLAN

Rate Purpose

To fund the activities of Emergency Management, Grants, Total Mobility, Public Toilets, Civic Theatre, Democratic Process, Destinational Marketing, General Rate Enterprise, Community Development, other Support Services and 15% of both street lighting and footpaths

To fund provision of Parks and Reserves in the Parks and Reserves District

Pools To fund provision of Aquatic Facilities in the District.

To fund the function of Resource Management, Regulatory Services Environmental Health, Animal Services and Building Services

Roading To fund the provision of Roading Services

Cemeteries To fund the operation of Council’s Cemeteries

Libraries To fund provision of Library Services in the District

To fund Council’s contribution to the operation of Regional Heritage Southland museums and heritage

To fund all costs associated with the redevelopment Business Development of commercial areas

To fund economic, sporting and cultural Economic Development development initiatives

To fund provision of footpaths in the areas marked Footpaths in Map A

To fund the provision of street lighting in the areas Street Lighting marked in Map A

To fund the cost of subsidised public transport in Transport the areas marked in Map B

To fund the costs of drainage in the areas marked Drainage Makarewa in Map C

Funding Impact Statement 15

60 Council - ADOPTION OF 2019/20 ANNUAL PLAN

Rate Purpose

To fund the costs of drainage in the areas marked Drainage Myross Bush in Map D

To fund the cost of operating a community centre in Community Centres each of the areas marked in Map E

To fund costs within the Bluff Community Board Community Board marked in Map F

To fund the costs of drainage in the areas marked Drainage Redmayne Road in Map G

To fund the costs of the City Centre Co-ordinator in City Centre Co-ordinator the areas marked in Map H

Water To fund the provision of reticulated water

Sewerage To fund the provision of reticulated sewerage

To fund the costs of drainage, other than in the Drainage areas marked on Maps

To fund the provision of refuse removal and Refuse collection kerbside recycling in the services area

General waste management To fund the education and administration service

2019/20 16 Annual Plan

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Total Rates to be Collected

Rating valuations were last reviewed in 2017. The table of Rating Change below shows some examples of different properties, their valuation change and the impact this has had on the rates payable by the ratepayer.

Table of Rating Changes

Type of Rateable Value Rateable Value Rates Rates $ Change $ Change % Change Property (Current) $ (proposed) $ 2018/19 $ 2019/20 $ Annual Weekly Rates

Residential 130,000 130,000 1,802 1,865 63 1.21 3.50%

Residential* 255,000 265,000 2,291 2,411 121 2.32 5.27%

Residential 350,000 350,000 2,662 2,755 93 1.79 3.50%

Commerical 750,000 750,000 5,998 6,208 210 4.04 3.50%

Commerical* 1,090,000 1,150,000 8,757 9,284 527 10.14 6.02%

Commerical 3,590,000 3,590,000 19,352 20,029 677 13.03 3.50%

Farms 620,000 620,000 1,427 1,476 50 0.96 3.50%

Farms* 1,730,000 1,780,000 2,943 3,125 181 3.49 6.17%

Farms 8,500,000 8,500,000 13,206 13,668 462 8.89 3.50%

Industrial 1,030,000 1,030,000 6,911 7,153 242 4.65 3.50%

Industrial* 2,200,000 2,250,000 12,245 12,842 597 11.48 4.88%

Industrial 19,500,000 19,500,000 54,246 56,144 1,899 36.51 3.50%

* denotes where property value has changed

Funding Impact Statement 17

62 Council - ADOPTION OF 2019/20 ANNUAL PLAN

Rating Tables

Residential Residential Multi Unit Commercial Industrial Rural-Farming Contiguous Property

First Unit Each Additional Unit

Base Rate % Base Rate % Base Rate % Base Rate % Base Rate % Base Rate % Base Rate %

General Rate 0.00075492 100 0.00075492 100 0.00075492 -100 0.00075492 100 0.00075492 100 0.00075492 -25 0.00075492 100

Targeted Rate

Parks and Reserves Uniform Annual 59.51 100 59.51 100 59.51 -100 59.51 100 59.51 100 59.51 100 Charge

Parks and Reserves 0.00096208 100 0.00096208 100 0.00096208 -100 0.00096208 -100 0.00096208 -100 0.00096208 -100 0.00096208 100 Base Rate

Pools Uniform 29.76 100 29.76 100 29.76 -100 29.76 100 29.76 100 29.76 100 Annual Charge

Pools Base Rate 0.00036248 100 0.00036248 100 0.00036248 -100 0.00036248 -100 0.00036248 -100 0.00036248 -100 0.00036248 100

Regulatory Services 0.00051036 100 0.00051036 100 0.00051036 -100 0.00051036 100 0.00051036 100 0.00051036 -25 0.00051036 100 Base Rate

Roading Base Rate 0.00078257 100 0.00078257 100 0.00078257 -100 0.00078257 100 0.00078257 100 0.00078257 -25 0.00078257 100

Cemeteries Base 0.00004408 100 0.00004408 100 0.00004408 -100 0.00004408 100 0.00004408 100 0.00004408 -25 0.00004408 100 Rate

Libraries Base Rate 200.16 100 200.16 100 200.16 -25 200.16 100 200.16 100 200.16 100

Regional Heritage 42.56 100 42.56 100 42.56 -25 42.56 100 42.56 100 42.56 100 Base Rate

Business 0.00048203 -100 0.00048203 -100 0.00048203 -100 0.00048203 100 0.00048203 100 0.00048203 -100 0.00048203 100 Development Rate

Economic Development Base 0.00017163 -100 0.00017163 -100 0.00017163 -100 0.00017163 100 0.00017163 100 0.00017163 -100 0.00017163 100 Rate

2019/20 18 Annual Plan

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