Agenda of Hastings District Rural Community Board

Hastings District Rural Community Board – Terms of Reference

The Community Board is a separate entity to the Council. The role of the Community Board is set out in Section 52 of the Local Government Act 2002. The Council is authorised to delegate powers to the Community Board.

Membership (6 members)

The Board elects its own Chairman

4 Elected Community Board Members

1 Mohaka Ward Councillor

1 Kahuranaki Ward Councillor

Quorum – 4 members

DELEGATED POWERS

General

1. To maintain an overview of services provided by the Council within the Community Board’s area.

2. To represent, and act as an advocate for, the interests of the community represented.

3. To consider and report on all matters referred to the Board by the Council, or any matter of interest or concern to the Community Board.

4. To communicate with community organisations and special interest groups within the community;

5. To undertake any other responsibilities that are delegated to it by the Council.

6. To appoint a member of the Community Board to organisations approved by the Council from time to time.

LONG TERM PLAN/ANNUAL PLAN/POLICY ISSUES

7. Authority to make a submission to the Long Term Plan/Annual Plan process on activities, service levels and expenditure (including capital works priorities) within the Board’s area or to make a submission in relation to any policy matter which may have an effect within the Board’s area.

ROADING AND TRAFFIC

8. Authority to exercise the Council’s powers and functions in relation to roads within the Board’s area under the following sections of the Local Government Act 1974:

· Section 335 (vehicle crossings);

· Section 344 (gates and cattle stops);

· Section 355 (overhanging trees).

9. Authority to exercise the Council’s statutory powers (including any relevant powers conferred by bylaw) over roads within the Board’s area in respect of:

(i) Road user behaviour at intersections;

(ii) Controls on stopping or overtaking

(iii) Controls on turning

(iv) Pedestrian safety,

(v) Footpath maintenance and improvements.

(vi) Accident investigation studies, lighting and other safety works

10. For the avoidance of doubt, nothing in this delegation authorises a Community Board to deal with a matter, in the exercise of delegated authority, in a manner which is conflict with any policy or decision of the Council or any standing committee of the Council in relation to the same matter.

HASTINGS DISTRICT COUNCIL

Hastings District Rural Community Board MEETING

Monday, 10 September 2018

VENUE:

Landmarks Room

Ground Floor

Civic Administration Building

Lyndon Road East

Hastings

TIME:

2.00pm

A G E N D A

1. Apologies

At the close of the agenda no apologies had been received.

At the close of the agenda no requests for leave of absence had been received.

2. Conflict of Interest

Members need to be vigilant to stand aside from decision-making when a conflict arises between their role as a Member of the Council and any private or other external interest they might have. This note is provided as a reminder to Members to scan the agenda and assess their own private interests and identify where they may have a pecuniary or other conflict of interest, or where there may be perceptions of conflict of interest.

If a Member feels they do have a conflict of interest, they should publicly declare that at the start of the relevant item of business and withdraw from participating in the meeting. If a Member thinks they may have a conflict of interest, they can seek advice from the General Counsel or the Democratic Support Manager (preferably before the meeting).

It is noted that while Members can seek advice and discuss these matters, the final decision as to whether a conflict exists rests with the member.

3. Confirmation of Minutes

Minutes of the Hastings District Rural Community Board held Monday 28 May 2018.

(Previously circulated)

4. Rural Transportation Activities Report 5

5. Rating Area 2 - Financial Result 39

6. Additional Business Items

7. Extraordinary Business Items

File Ref: 18/757

REPORT TO: Hastings District Rural Community Board

MEETING DATE: Monday 10 September 2018

FROM: Transportation Operations Manager

Adam Jackson

SUBJECT: Rural Transportation Activities Report

1.0 SUMMARY

1.1 The purpose of this report is to update The Rural Community Board with the Rural Transportation Programmed Project Status and Activities Report.

1.2 This issue arises from the Board’s desire to receive regular updates on progress with the works programme and other activities.

1.3 The Council is required to give effect to the purpose of local government as prescribed by Section 10 of the Local Government Act 2002. That purpose is to meet the current and future needs of communities for good quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost–effective for households and businesses. Good quality means infrastructure, services and performance that are efficient and effective and appropriate to present and anticipated future circumstances.

1.4 This report concludes by recommending that the report be received.

2.0 2018/19 RURAL TRANSPORTATION ACTIVITES REPORT – ESK FLOOD EVENT, JUNE 12 FLOOD EVENT

2.1 Two storm events were experienced between March 2018 and June 2018. These are known as Esk Flood Event, and June 12 Flood event. Costs to attend these events are spread across two financial years being 2017/18 and 2018/19

2.2 Emergency Repair Costs

· The estimated cost of the storm event, known as the Esk Flood that occurred at the beginning of March 2018 is $690,240. This is an increase on the estimated amount reported to the Rural Community board previously of approximately $120,000. Additional works were identified following completion of road inspections.

· The estimated cost of the storm event, known as the June 12 Flood event is $1,200,000.

· The total costs of emergency events for these two events 2017/18 was $1,220,322 and for 2018/19 is estimated to be $620,000

· The major emergency budget allowance in the 2018/19 Annual Plan is $283,880

· This leaves a budget shortfall of $336,120

· The local share shortfall at 54% NZTA financial assistance rate is $154,615

2.3 This local share shortfall can be funded from the Rural Flood Emergency Event Reserve which at 20 August has a balance of $1,117,963.74.

3.0 Summary of Funding & Spend for 2017/18 :

3.1 A summary of spend for the year ended 30 June 2018 shows a local share of spend funded from the Rural Flood Emergency Event Reserve at $605,791. This table also shows the resolutions and the amounts carried to approve the funding of that spend. The table highlights the need for a further recommendation for the Rural Community Board to approve final draw-down from the Rural Flood Emergency Event Reserve of $257,195, to fund expenditure from the recent flood event including the Vista bridge repairs.

4.0 Forestry Effects on Roads

4.1 This report provides background to the Rural Community Board on the effects that logging is having on the unsealed road network due to winter logging activity, and the forward logging programme that is known.

4.2 Historically logging was discontinued during winter periods due to the low return on logs, and the negative revenue probability in the event of inclement weather holding up logging crews.

4.3 Current high log process combined with the high volume of wood lots at maturity is causing logging operators to work all through winter.

4.4 Winter logging is causing new problems on road network. Sealed and unsealed roads are very susceptible to damage when heavy loads pass over them in wet conditions.

4.5 Councils officers have commenced a programme to investigate options available to:

· Present options to minimise damage to roads, or increase funding for the roads

· Use alternate materials to lessen the impact of loads in wet conditions

4.6 The outcome of this investigation will be presented to the Rural Community Board in December.

5.0 RECOMMENDATIONS AND REASONS

A) That the report of the Transportation Operations Manager titled “Rural Transportation Activities Report” dated 10/09/2018 be received.

B) That the local share shortfall from 2017/18 flood damage of $257,195 be approved from the Rural Flood Emergency Event Reserve.

Attachments:

1	Aug18 Appendices report-Adam.xlsx	PRJ17-122-0112
2	Aug App3 June 12 Storm Event 2018-19 Expected Costs	PRJ17-122-0111
3	Rural Community Board Photos August 2018 - Attachment	CG-14-26-00068
4	Forward Works 2018/19 - Attachment 4	CG-14-26-00069

File Ref: 18/806

REPORT TO: Hastings District Rural Community Board

MEETING DATE: Monday 10 September 2018

FROM: Financial Controller

Aaron Wilson

SUBJECT: Rating Area 2 - Financial Result

1.0 SUMMARY

1.1 The purpose of this report is to inform the Hastings Rural Community Board (RCB) of the indicative rating result for the year ended 30 June 2018.

1.2 The Council is required to give effect to the purpose of local government as prescribed by Section 10 of the Local Government Act 2002. That purpose is to meet the current and future needs of communities for good quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost–effective for households and businesses. Good quality means infrastructure, services and performance that are efficient and effective and appropriate to present and anticipated future circumstances.

1.3 The indicative result for Rating Area 2 for the 2017/18 year is favourable to budget and is a $424,274 rating surplus. The results are unaudited and indicative at this stage and consequently there may be some variation to the figures in the final result. Additional to this is the Rating Area 2 share of the Landfill surplus of $282,576.

1.4 This report concludes by recommending that the Hastings Rural Community Board recommend to the Finance and Risk Committee that the remaining rating surplus after specific allocations is allocated to the Rural Flood and Emergency Event Reserve.

2.0 CURRENT SITUATION

2.1 The unaudited result for the year ended 30 June 2018 will be presented to the Finance & Risk Committee on 11 September 2018.

2.2 This report sets out the indicative rating result for the year ended 30 June 2018 for Rating Area 2.

The Rating Result

2.3 The indicative rating result for the 2016/17 financial year is a positive result for

Rating Area 2, a $424,274 surplus.

2.4 A more detailed breakdown of this result is available in Attachment 1.

2.5 The overall rating surplus is due to savings across a number of Council activities. The following graph demonstrates from what activities the surplus has accumulated:

2.6 The largest single contributor of the RA2 surplus was Transportation with lower maintenance and renewals costs. The rates revenue for RA2 had a surplus after rates remissions, penalties and doubtful debts were taken into account, and has contributed to the surplus favourably.

2.7 The net rating result is shown in the attached schedule “Analysis of Year End Result for 2017/18 for Rating Area 2”. This shows the budgeted and actual cost for the various activities and the amount requested to be carried forward. The final column shows the rating surplus or deficit (negative) for the activities. Also attached as Attachment 2 is the 2016/17 result for comparison.

2.8 The following table summarises the allocation of the 2017/18 Rating Area 2 surplus:

	$
RA2 Surplus on General Rate	424,274
Allocation of Surplus:
Rural Flood & Emergency Event Reserve	424,274


Allocated Surplus	424,274

Landfill Surplus allocation:

2.9 In addition to the rating surplus, the Council has received for allocation, revenue from the surpluses generated at the Landfill totalling $2.3m. Prior to last year surpluses generated at the Landfill were used to replay Landfill debt. The remaining debt was extinguished by application of surpluses from the 2015/16 financial year. Last year the RCB recommended to Council that the RA2 share of the Landfill surplus be allocated to the RA2 Capital Reserve.

2.10 In 2008 the Rural Community Board recommended to Council that the landfill rating formula be changed to designated population which is the basis for the allocation above. This recommendation was approved by Council.

2.11 It is recommended that the RA2 share of the Landfill surplus of $282,576 be allocated as it was last year to the Capital Reserve.

Rural Flood and Emergency Event Reserve

2.12 The Rural Flood and Emergency Event Reserve has a balance of $1,117,963 as at 30 June 2018. The Hastings Rural Community Board on 21 September 2015 resolved:

“That the Hastings Rural Community Board recommend to Council that a new target level for the Rural Flood and Emergency Event Reserve be established of $2,000,000.”

2.13 The above resolution was subsequently approved by Council.

2.14 The balance of the rural flood and emergency event reserve has fallen significantly during the 17/18 year, with costs totalling $605,791, being funded from out of this reserve, due to two flood events.

2.15 The following table summarises the cost of these events and how they were funded:

2.16 In addition there are a number of costs to still come in from the second flood. These costs are likely to be covered by the flood budget provided for in the 18/19 year, however this will put pressure on this budget and increase the risk that other events may then need to be covered by this reserve.

2.17 Allocation of Surplus

Council’s Treasury Policy states the following on the allocation of surpluses:

“The funds from all asset sales and operating surpluses will be applied to the reduction of debt and/or a reduction in borrowing requirements, unless the Council specifically directs that the funds will be put to another use.”

2.18 Rating Area 2 currently has no debt, with the last of the debt paid off with the 2016 surplus.

2.19 The exact allocation of funds to reserve contributions may change if Council determine that additional funds be set aside from the 2017/18 surplus to meet any other identified needs. The Rating Area 2 surplus allocation will only be affected by the relevant rating splits between Rating Area 1 and Rating Area 2.

2.20 The Rating Area 2 reserve balances as at 30 June 2018 are as follows:

Reserve Description *(Interest bearing Y/N)*	Balance ($)
Rural Flood and Emergency Event Reserve (Y)	1,117,964
Rural Fire Contingency Fund (N)	6,457
General Purpose Reserve - Rating Area 2 (N)	559,683
Capital Reserve - Rating Area 2 (N)	1,778,708
Transportation NZTA Fund Reserve Rating Area 2 (N)	639,177

2.21 Given that Rating Area 2 has no debt, the Board can therefore only allocate the surplus to increasing reserves including the Rural Flood and Emergency Reserve, the Capital Reserve or some other reserve for another purpose.

2.22 In addition there are a number of costs to still come in from the second flood, in the early part of the 18/19 financial year. These costs are likely to be covered by the budget allowed for in the 18/19 year, however it will mean that other events may then need to be covered by this reserve.

2.23 It is recommended that the rural flood and emergency reserve be replenished from the 17/18 surplus to enable Council to help mitigate the cost of another event occurring.

2.24 The following table is a summary of the recommended allocations of the 2017/18 RA2 surplus:

2017/18 Rating	Surplus
RA2 Surplus on General Rate - Allocation to Rural Flood & Emergency Event Reserve	$424,274
RA2 Surplus from Landfill Operations - Allocation to RA2 Capital Reserve	$282,576
	$706,850

3.0 SIGNIFICANCE AND CONSULTATION

This decision is not significant in terms of the Council’s policy on significance and no consultation is required.

4.0 RECOMMENDATIONS AND REASONS

A) That the report of the Financial Controller titled “Rating Area 2 - Financial Result” dated 10/09/2018 be received.

B) That the Hastings Rural Community Board recommend to Council that the Rating Area 2 Rating Surplus of $424,274 be allocated to the Rural Flood & Emergency Event Reserve. Noting that the value of the surplus available will change if Council makes decisions to allocate the overall Council surplus to other projects that require a rating area allocation to be made.

C) That the Hastings Rural Community Board recommend to Council that the RA2 allocation of the Landfill surplus of $282,576 contribute to the RA2 Capital Reserve in accordance with the approved rating allocation for the Landfill.

Attachments:

Analysis of Rating Area 2 Year End Result for 2017/18 & 2016/17

CG-14-26-00070

Hastings District Council

Lyndon Road East, Hastings

Hastings District Rural Community Board – Terms of Reference