Agenda of Council Meeting

File Ref: 19/924

REPORT TO: Council

MEETING DATE: Wednesday 27 November 2019

FROM: Manager Strategic Finance

Brent Chamberlain

SUBJECT: New Zealand Local Government Funding Agency Limited - Annual Report for the Year Ended 30 June 2019

1.0 EXECUTIVE SUMMARY - TE KAUPAPA ME TE WHAKARĀPOPOTOTANGA

1.1 The purpose of this report is to inform the Committee of the financial results of New Zealand Local Government Funding Agency Limited (LGFA) for the year ended 30 June 2019.

1.2 This issue arises from the receipt of the annual report for the 12 months ended 30 June 2019 from the LGFA.

1.3 This report contributes to the purpose of local government by primarily promoting economic wellbeing and more specifically through the Council’s strategic objective of providing good quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost–effective for households and businesses.

1.4 LGFA’s total interest income for the financial year was $361.1m which was up 5.3% over the previous year.

1.5 LGFA’s operating profit was $11.2m which was a decrease of 5.1% on the previous year.

1.6 While the operating profit was lower than the previous year’s result, it did exceed the Statement of Intent (SOI) forecast.

1.7 The LGFA has lent $9,311m to 64 councils across New Zealand.

1.8 The LGFA continues to provide savings in borrowing costs for councils relative to other sources of borrowing.

2.0 RECOMMENDATIONS - NGĀ TŪTOHUNGA

A) That the Committee receives the report titled New Zealand Local Government Funding Agency Limited - Annual Report for the Year Ended 30 June 2019

3.0 BACKGROUND – TE HOROPAKI

3.1 The LGFA was established on 1 December 2011 with 18 Local Government shareholders and the Crown. Hastings District Council became a shareholder with a shareholding investment of $400,000 (1.8%). The LGFA is a Council Controlled Organisation.

3.2 During 2012, 12 new shareholders joined the LGFA as part of the second opening with Council selling down some shares to the 12 new shareholders. This reduced HDC’s shareholding to $373,196 (1.77%).

4.0 DISCUSSION - TE MATAPAKITANGA

4.1 Attachment 1 is a copy of the Annual Report for the 12 months ended 30 June 2019.

4.2 The Annual Report covers a number of topics including financial performance, how they manage their treasury risk, and how they performed against their Statement of Intent.

4.3 LGFA’s total interest income for the financial year was $361.1m which was up 5.3% over the previous year.

4.4 LGFA’s operating profit was $11.2m which was a decrease of 5.1% on the previous year.

4.5 While the operating profit was lower than the previous year’s result, it did exceed the Statement of Intent (SOI) forecast due to larger than expected growth in council loans. The lower profitability was on the back of lower interest rate levels, and councils refinancing loans with high margins (the original loans when LGFA was first established) with loans with lower margins.

4.6 Expenses have been managed under budget.

4.7 LGFA has lent $9,311m to 64 councils across New Zealand.

4.8 The table below shows the borrowings undertaken across all New Zealand councils since LGFA’s inception in 2012. During the 12 month period to 30 June 2019 the LGFA provided 92.3% of the sectors borrowings.

4.9 LGFA has 64 member councils with 8 new members being added during the year.

4.10 The LGFA continues to provide savings in borrowing costs for councils relative to other sources of borrowing (Auckland and Dunedin Councils are paying between 7 and 10 basis points more when borrowing externally than the LGFA equivalent offerings).

4.11 The LGFA allows Councils to borrow for periods anywhere from 30 days to 15 years in length.

4.12 LGFA bonds continue to be popular with investors with an average of 2.6 bids per bond being offered during 2018/9.

4.13 During the current financial year LGFA has been working on moving into a position where it can lend directly to Council Controlled Organisations in the future.

4.14 Officers are of the opinion that the LGFA’s performance continues to be very successful; creating a more efficient and diversified funding market for Councils to participate in.

5.0 OPTIONS - NGĀ KŌWHIRINGA

Option One - Recommended Option - Te Kōwhiringa Tuatahi – Te Kōwhiringa Tūtohunga

5.1 The Council can receive the LGFA’s Annual Report

6.0 NEXT STEPS - TE ANGA WHAKAMUA

6.1 No further steps are required.

Attachments:

1 ⇨	LGFA Annual Report 2018-2019 Cover Letter	FIN-15-5-19-752	Under Separate Cover
2 ⇨	LGFA Annual Report 2018-2019	FIN-15-5-19-751	Under Separate Cover

SUMMARY OF CONSIDERATIONS - HE WHAKARĀPOPOTO WHAIWHAKAARO

Fit with purpose of Local Government - E noho hāngai pū ai ki te Rangatōpū-ā-rohe

The Council is required to give effect to the purpose of local government as set out in section 10 of the Local Government Act 2002. That purpose is to enable democratic local decision-making and action by (and on behalf of) communities, and to promote the social, economic, environmental, and cultural well-being of communities in the present and for the future

This report contributes to the purpose of local government by primarily promoting economic wellbeing and more specifically through the Council’s strategic objective of providing good quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost–effective for households and businesses.

Link to the Council’s Community Outcomes - E noho hāngai pū ai ki te rautaki matua

This proposal promotes the economic well-being of communities in the present and for the future by allowing Council to access funds to build/maintain infrastructure in a cost effective manner.

Māori Impact Statement - Te Tauākī Kaupapa Māori

There are no known impacts for Tangata Whenua.

Sustainability - Te Toitūtanga

The LGFA’s success allows councils to access funds to build/maintain infrastructure in a cost effective manner.

Financial considerations - Ngā Whaiwhakaaro Ahumoni

The LGFA’s success allows councils to access funds to build/maintain infrastructure in a cost effective manner.

Significance and Engagement - Te Hiranga me te Tūhonotanga

This decision/report has been assessed under the Council's Significance and Engagement Policy as being of minor significance.

Consultation – internal and/or external - Whakawhiti Whakaaro-ā-roto, ā-waho

There has been no external engagement. The Annual Report will be presented at the LGFA’s AGM on the 21^st November 2019 in Wellington.

Risks: Legal/ Health and Safety - Ngā Tūraru: Ngā Ture / Hauora me te Haumaru

No Risks have been identified in this report.

Rural Community Board - Ngā Poari-ā-hapori

There are no implications for the rural community board.

File Ref: 19/968

REPORT TO: Council

MEETING DATE: Wednesday 27 November 2019

FROM: Manager Strategic Finance

Brent Chamberlain

SUBJECT: Hawke's Bay Museums Trust Annual Report 2019

1.0 EXECUTIVE SUMMARY - TE KAUPAPA ME TE WHAKARĀPOPOTOTANGA

1.1 The purpose of this report is to update the Council on the performance of the Hawke’s Bay Museums Trust (HBMT) for the year ended 30 June 2019.

1.2 This request arises from the receipt of the Hawke’s Bay Museums Trust Annual Report for the year ended 30 June 2019.

1.3 This report contributes to the purpose of local government by primarily promoting cultural wellbeing and more specifically through the Council’s strategic objective of fostering the arts and cultural experience.

1.4 The HBMT’s annual report shows a surplus for the year of $827,830. Most of this relates to the receipt of donated assets. The true underlying operating results was a modest surplus of $26,129.

1.5 The Trust has net worth of $41,562,592 of which $40,983,614 is its Artworks and Collection.

1.6 The Trust has met most of its non-financial targets for the year as set out in its statement of intent (see 4.8 for more detail).

2.0 RECOMMENDATIONS - NGĀ TŪTOHUNGA

A) That the Council receives the report titled Hawke's Bay Museums Trust Annual Report 2019

3.0 BACKGROUND – TE HOROPAKI

3.1 The Hawke’s Bay Museums Trust (HBMT) is a Council Controlled Organisation with 3 of the 5 Trustees appointed by Napier City Council (NCC) and Hastings District Council (HDC) and with the bulk of its funding provided jointly by those Councils. The HBMT Board is responsible for a management agreement between the HBMT and the NCC with the management agreement providing for the operations of the Museum, Art Gallery and associated activities which are operated by the NCC.

HBMT has 4 main goals:

· To protect the regional collection

· To maintain and enhance the quality of the collection

· To maximise access to the collection

· To further develop the collection

3.2 The HBMT (Incorporated) is registered as a charitable entity under the Charities Act 2005.

3.3 The Board is constituted to have five members appointed as follows:

· One appointed by Napier City Council

· One appointed by Hastings District Council

· One appointed by the Hawke’s Bay Museums Foundation Charitable Trust

· One appointed by Ngati Kahungunu Iwi (Incorporated)

· The Chairperson who shall be appointed by Napier City Council and Hastings District Council jointly.

3.4 The Trustees as at 30 June 2019 were as follows:

Director	Effective From
Dr Richard Grant	December 2014
Deputy Mayor Faye White (Napier)	September 2015
Councillor George Lyons (Hastings)	December 2013
Johanna Mouat	December 2013
Mike Paku	December 2013

3.5 Dr Grant was appointed as the Independent Chairman by the joint appointments committee in late 2014. Council’s Policy on Appointment and Remuneration of Directors for Council Organisations states that the Independent Chair be appointed jointly by NCC and HDC and that HDC’s member on this Appointments Panel be the Mayor Hazlehurst or their delegate. Unfortunately Dr Grant is unable to attend the meeting to present the Annual Report, however with the ongoing review of the Hawkes Bay Museums Trust and the Regional Collection, there will be an opportunity for Dr Grant to present to Council in early 2020.

4.0 DISCUSSION - TE MATAPAKITANGA

4.1 Attachment 1 is a copy of the Hawke’s Bay Museum Trust’s Annual Report including signed and audited accounts for the year ended 30 June 2019.

4.2 Hastings District Council’s representative on the Trust is George Lyons.

4.3 The HBMT received grants of $1,181,397 in aggregate from the NCC and HDC compared to $917,320 received in the 2018 financial year.

The grants cover the contracted costs to NCC to provide administrative and management services for the management of the collection. The costs of the regional collection are met equally by the HDC and NCC with HDC contributing $598,198 in 2019 compared to $466,160 in 2018.

The HDC contribution includes $15,000 as a training grant to the Trust whereby the NCC training grant offsets expenditure incurred by NCC on behalf of the Trust.

4.4 The audited accounts show a net surplus from operating activities for the year ended 30 June 2019 of $827,830 ($78,444 in 2018). $801,701 of this surplus is due to the recognition of the value of assets gifted to the Trust, with the remaining $26,129 surplus coming from normal operations.

4.5 The Statement of Financial Position reports accumulated funds of $41,648,770 as at 30 June 2019 compared with $40,840,378 as at 30 June 2018. The majority of this change stems from the increase in value of the collection (mainly donations being recognised), with the balance coming from operating activities.

4.6 The statement of Financial Position records the collection at $40,983,614 as at 30 June 2019 compared to $40,179,424 in 2018.

4.7 The statement of Financial Position also records an operating bank balance of $36,487 ($17,786: 2018) with a further $625,260 held in investments ($635,260: 2018). Of the investments of $625,260, $524,209 are held as special purpose reserves (see note 7) with various restricted use applications.

4.8 The Annual Report also includes a comparison of the non-financial performance measures included in the Statement of Intent for the year ended 30 June 2019 against the actual results achieved, and these are as follows:

4.9 Generally the targets set in the Statement of Intent have been met and officers believe that this plus the financial result reported in the Annual Report presents a good result for the Trust.

4.10 The HBMT owns, protects, and makes available the collection of art, local history, Maori and ethnographic objects. The primary place of display and storage of the collection is at the MTG Hawke’s Bay, while overflow storage is housed at the Rothmans Building in Napier. This offsite storage has been a long standing issue as it is expensive and not ideal for storing historical artefacts (lack of climate control). A joint working group is currently investigating the feasibility of an alternative site adjoining the Hastings District Library in Civic Square.

5.0 OPTIONS - NGĀ KŌWHIRINGA

Option One - Recommended Option - Te Kōwhiringa Tuatahi – Te Kōwhiringa Tūtohunga

5.1 The Council can receive the HBMT’s Annual Report

6.0 NEXT STEPS - TE ANGA WHAKAMUA

6.1 No further steps are required.

Attachments:

1 ⇨

HBMT Annual Report 30 June 2019

EXT-10-11-7-19-227

Under Separate Cover

SUMMARY OF CONSIDERATIONS - HE WHAKARĀPOPOTO WHAIWHAKAARO

Fit with purpose of Local Government - E noho hāngai pū ai ki te Rangatōpū-ā-rohe

This report contributes to the purpose of local government by primarily promoting cultural wellbeing and more specifically through the Council’s strategic objective of fostering the arts and cultural experience.

Link to the Council’s Community Outcomes - E noho hāngai pū ai ki te rautaki matua

This proposal promotes the cultural wellbeing well-being of communities in the present and for the future.

Māori Impact Statement - Te Tauākī Kaupapa Māori

Part of the Trust’s collection is Māori Taonga. Ngati Kahungunu Iwi (Incorporated) is represented on the Trust by Mike Paku to ensure that the Taonga is preserved for future generations, while being readily accessible to the public of today.

Sustainability - Te Toitūtanga

The Trust’s result shows that it remains financially viable, however if one (or both) of the funding Councils were to withdrawal it’s funding in whole (or part) then the Trust’s sustainability would be questionable.

Financial considerations - Ngā Whaiwhakaaro Ahumoni

Receiving this report has no financial implications for Hastings District Council.

Significance and Engagement - Te Hiranga me te Tūhonotanga

This decision/report has been assessed under the Council's Significance and Engagement Policy as being of minor significance.

Consultation – internal and/or external - Whakawhiti Whakaaro-ā-roto, ā-waho

The Trust’s Annual Report has been presented to the two funding Council’s and at its AGM.

Risks: Legal/ Health and Safety - Ngā Tūraru: Ngā Ture / Hauora me te Haumaru

Receiving this report does not trigger any legal or health and safety issues.

Rural Community Board - Ngā Poari-ā-hapori

There are no implications for the Rural Community Board.

File Ref: 19/1130

REPORT TO: Council

MEETING DATE: Thursday 28 November 2019

FROM: Financial Policy Advisor

Ashley Humphrey

Chief Financial Officer

Bruce Allan

SUBJECT: District Wide 2019 Revaluation

1.0 EXECUTIVE SUMMARY - TE KAUPAPA ME TE WHAKARĀPOPOTOTANGA

1.1 This is an administrative report to inform the Council of the potential rating impacts of the 2019 District Wide Revaluation for the Hastings District.

1.2 Council is required by legislation to carry out a revaluation of all properties within its district every three years. These values are then used to determine that properties share of rates.

1.3 Under the 2019 revaluation, the average proposed land value increase across the district is 51.1%.

1.4 Whilst a revaluation does not increase or change the amount of rates council recovers across its district, it does redistribute the share of rates that each individual property pays depending on their individual land value change.

1.5 The impact upon any property will depend on their land value increase in comparison to the average across the district.

1.6 The 2019 Revaluation has generally seen some variable land value movements across Rating Area 1, with more modest changes across Rating Area 2. The following table summarising how some of our property categories or differential groups are affected under the 2019 District Wide Revaluation.

RATING AREA 1 Property Category / Differential Rating Group / Location	Summary
Residential – Hastings & Havelock North	Most properties have seen average increases in Land value (50%) so the rating impacts are generally minor for most.
Residential – Flaxmere / Whakatu	Most properties have seen above average increases in Land Value (100%), resulting in rate increases of 5% for most properties.
Residential – Clive, Haumona / Te Awanaga	Most properties have seen below average increases in Land Value (25-30%), resulting in rate decreases of around 8% for most properties.
CBD Commercial – Hastings & Havelock North	Most properties have seen below average increase in Land Value (25-40%), resulting in rate decreases of around 10% for most properties
Industrial (Whakatu / Irongate)	Most properties have seen above average Land Value increases (150%to 200%), resulting in rate increases of at least 21% for most properties.
Suburban Commercial (Other Commercial)	Most properties have seen below average increase in Land Value (30%), resulting in rate decreases of around 15% for most properties
Horticulture / Farming	Most properties have seen above average Land Value increases (100%), resulting in rate increases of at least 11% for most properties.

RATING AREA 2

Property Category / Differential Rating Group / Location

Summary

Dairy Farming

Most properties have seen decreases in Land Value (10%), resulting in rate decreases of 30% for most properties

Residential and Lifestyle / Horticulture / Farming

Most properties have seen Land value increase by a similar % (30-40%), so for most properties the rating impacts are generally minor (I.e 60% of all RA2 properties have a +/-5% increase)

1.7 Whilst acknowledging the rating impacts, Officers believe the impacts from the 2019 revaluation should however be viewed in the context of previous revaluations and not necessarily in isolation.

2.0 RECOMMENDATIONS - NGĀ TŪTOHUNGA

A) That the Council/Committee receives the report titled District Wide 2019 Revaluation

3.0 BACKGROUND – TE HOROPAKI

3.1 The Rating Valuations Act 1998 requires a Local Authority to undertake a district revaluation no less than once every three years. The Council has contracted Quotable Value Ltd (QV) to undertake this process on Council’s behalf, with the 2019 revaluation being signed off by the Valuer-General on 11 October 2019.

3.2 QV have sent individual revaluation notices to all property owners on 21 October 2019. Property owners can object to their property’s valuation, providing they lodge their objection with QV by 4 December 2019. Once objections are settled the new district valuation will be used for rating purposes from 1 July 2020.

3.3 The following table shows a high level overview of the results of the district revaluation by property category.

Property Category	Number of Assessments	Capital Value % Change	Land Value % Change
Forestry	123	18.2%	20.7%
Dairy	28	-6.6%	-9.0%
Pastoral	1413	34.0%	34.7%
Horticulture / Specialist	1447	67.1%	84.6%
Lifestyle	2985	35.3%	40.3%
Commercial	866	24.9%	33.9%
Industrial	748	40.6%	77.8%
Residential	23589	43.3%	53.5%
Other (Mining, Utilities, Other)	866	23.1%	49.1%
AVERAGE % CHANGE		40.4%	51.1%

4.0 DISCUSSION - TE MATAPAKITANGA

4.1 Council currently collects approximately $51m through its General Rate, which is recovered from properties based on their location, how the property is used, and based on the properties land value. A property’s valuation therefore has the ability to influence the amount of rates recovered from any property.

4.2 A common misunderstanding is that an increase in land values across the district will lead to an increase in council’s rate take. This is not the case, changes to valuations simply reallocate how the general rate requirement is allocated and shared across the properties within the district. Council’s rating requirement is set separately by Council under its Annual Plan and Long Term Plan processes.

4.3 Another common misunderstanding is that an increase in land value will result in an increase in rates. This is not necessarily the case as it will depend on additional factors such as council’s budgetary requirements and more pertinently the level of movement of other properties within the district. For example:

· If all properties increased at the same rate and there was no change to council’s budget, there would be no impact on rates.

· If a property’s land value increases more than the average (greater than 51.1%) then it’s likely their share of the rates would increase.

· If a property’s land value increases less than the average (lower than 51.1%), it’s likely their share of rates would decrease.

4.4 Council will not finalise its rating requirement until June 2020 following the 2020/21 Annual Plan process, therefore all rating impacts illustrated throughout this report exclude any budgetary changes (including any changes to any of council’s targeted rates). Impacts are shown using the 2019/20 rating requirement and show the impacts of the revaluation only.

4.5 The following table provides a high level summary of the shift in share of general rates collected by differential groups, as a result of the proposed 2019 revaluation.

Differential Group	Existing 2019/20 General Rates using 2016 LV ($m)	Share %	Revised 2019/20 General Rates using 2019 LV ($m)	Share %	Share Change %
Residential	$18.59	45.8%	$18.50	45.6%	-0.3%
Residential Clive	$0.49	1.2%	$0.40	1.0%	-0.2%
Residential Non-Urban	$2.82	7.0%	$2.58	6.4%	-0.6%
CBD Commercial	$7.21	17.8%	$5.97	14.7%	-3.1%
Other Commercial	$3.69	9.1%	$3.85	9.4%	+0.4%
Commercial Non-Urban	$1.60	3.9%	$2.25	5.5%	+1.6%
Horticulture / Farming	$6.20	15.2%	$7.05	17.4%	+2.1%
*TOTAL (Rating Area 1)*	*$40.60*	*100%*	*$40.60*	*100%*	-
Residential	$0.80	7.7%	$0.84	8.1%	+0.4%
Commercial	$0.10	1.0%	$0.09	0.9%	-0.1%
Lifestyle/Horticulture/Farming	$9.50	91.3%	$9.46	91.0%	-0.3%
*TOTAL (Rating Area 2)*	*$10.40*	*100%*	*$10.40*	*100%*	-
TOTAL GENERAL RATES	$51.00		$51.00

4.6 In Rating Area 1, land values generally increased by 100% or greater across most Horticulture / Farming properties and Commercial Non-Urban properties, well above the average. As a result their share of the general rate increased by 2.1% and 1.6% respectively. CBD Commercial land values saw more modest increases in land value, well below the average, reducing their share of the general rate reduced by 3.1%.

4.7 Whilst the share of general rates recovered from Residential properties was relatively unchanged (-0.3%), the impacts were slightly more varied at a property level. These can be seen under Table 4.9.

4.8 In Rating Area 2, whilst the Residential share of general rates increased by 0.4%, the quantum of the shift in dollar terms was minor as the Lifestyle / Horticulture / Farming differential group represents approximately 90% of the total land value within Rating Area 2.

4.9 The following tables shows the impacts of the revaluation on a selection of sample properties within each rating area. Whilst the samples have been selected as representative of the impacts on that group, an individual property’s impact will depend on their own land value increase in comparison to the average across the district.

Rating Area 1)

Differential Group / Location	2019 Proposed LV	% Change in LV	2019/20 Current Rates	2019/20 Rates based on Proposed Revaluations	$ Change	% Change in Rates
Residential- Flaxmere	$104,000	+100%	$1790	$1880	+$90	+5.0%
Residential - Hastings	$265,000	+51%	$2546	$2513	-$32	-1.3%
Residential – Havelock Nth	$340,000	+51%	$2876	$2832	-$44	-1.5%
Residential Clive	$225,000	+25%	$2256	$2078	-$178	-7.9%
Residential Non-Urban (Haumoana)	$305,000	+30%	$2143	$1958	-$185	-8.6%
CBD Hastings Commercial	$562,000	+25%	$12128	$10618	-$1510	-12.5%
CBD Havelock Nth Commercial	$840,000	+40%	$14375	$13199	-$1176	-8.2%
Other Commercial	$780,000	+30%	$11568	$9873	-$1695	-14.7%
Commercial Non-Urban	$110000	+91%	$8841	$10715	+$1874	+21.2%
Horticulture / Farming	$630,000	+80%	$1999	$2223	+4224	+11.2%

4.10 Whilst there are a number of differential groups showing a decrease in rates, it is likely that some of those decreases may be negated once Council finalises it’s budgetary requirements through the 2020/21 Annual Plan process.

4.11 Those properties that stand out are Flaxmere Residential, Commercial Non-Urban and Horticulture / Farming, all groups that have seen their respective land value increase significantly. However, the increases should be put against the context of previous revaluations as illustrated under Tables 4.15 and 4.17.

4.12 Modest land value increases for the CBD and Other Commercial properties drive the magnitude of those rate decreases. Even accounting for changes in the budget, it is reasonable to believe some of these properties may see a rate decrease from July 2020.

Rating Area 2)

Differential Group	2019 Proposed LV	% Change in LV	2019/20 Current Rates	2019/20 Rates based on Proposed Revaluations	$ Change	% Change in Rates
Residential (RA2) – Waimarama	$360,000	+40%	$1670	$1671	+$1	+0.1%
Lifestyle / Horticulture / Farming (RA2)	$250,000	+35%	$1034	$1022	-$12	-1.2%
	$460,000	+39%	$1461	$1469	+$8	+0.5%
	$1,130,000	+35%	$2962	$2896	-$67	-2.3%
Commercial (RA2)	$245,000	+26%	$1437	$1350	-$87	-6.0%

4.13 In Rating Area 2, under the 2016 revaluation, Residential properties saw small rate decreases with Lifestyle / Horticulture / Farming properties seeing a small rate increase. Under the 2019 revaluation, the position appears to have reversed, although the movements are relatively minor when considering the dollar impacts.

4.14 With any revaluation, the impacts on any individual or groups of property will vary. Whilst officers acknowledge the financial burden that the revaluation can place on some groups of property owners, it should be noted that Council has historically refrained from making changes to its rating policy in previously revaluations with the view that over time the impacts from any revaluation can even themselves out.

4.15 As a means of illustrating this, the following table illustrates the impacts of the 2016 and 2019 revaluation on properties under Rating Area 1, which has seen more variable land values movements.

Differential Group / Location	2016 % Change in LV	2019 % Change in LV	% Change in Rates (2016 Reval)	% Change in Rates (2019 Reval)
Residential- Flaxmere	-10%	+100%	-5.0%	+5.0%
Residential - Hastings	+25%	+51%	+3.4%	-1.3%
Residential – Havelock Nth	+25%	+51%	+3.8%	-1.5%
Residential Clive	+20%	+25%	+1.5%	-7.9%
Residential Non-Urban (Haumoana)	+20%	+30%	+4.2%	-8.6%
CBD Hastings Commercial	No Change	+25%	-10.0%	-12.5%
CBD Havelock Nth Commercial	+20%	+40%	+3.5%	-8.2%
Other Commercial	+9%	+30%	-5.3%	-14.7%
Commercial Non-Urban	+10%	+91%	-5.0%	+21.2%
Horticulture / Farming	+21%	+80%	+3.4%	+11.2%

4.16 Whilst properties in Residential Flaxmere and Commercial Non-Urban properties are more adversely impacted under the 2019 revaluation, the reverse occurred under the 2016 revaluation.

4.17 The following table shows more historic data by property category, illustrating the % land value changes through the last five revaluations, including the cumulative % change since 2007.

Property Category	2007 LV % Change	2010 LV % Change	2013LV % Change	2016 LV % Change	2019 LV % Change	Cumulative LV % Change 2007 to 2019
Lifestyle	+30.7%	-9.7%	-9.1%	+14.0%	+40.3%	+66.2%
Farming	+27.7%	-7.3%	+0.9%	+32.8%	+34.7%	+88.8%
Horticulture / Specialist	+14.9%	+4.0%	-3.5%	+22.7%	+85.6%	+123.7%
Residential	+48.5%	-6.7%	-0.8%	+20.7%	+53.5%	+115.2%
Commercial	+66.7%	-4.2%	-0.3%	+5.3%	+33.9%	+101.4%
Industrial	+76.4%	+2.6%	+0.7%	+11.4%	+77.8%	+168.9%
Other (Utilities)	+57.0%	-5.3%	-0.4%	+18.3%	+38.0%	+107.6%

4.18 Whilst Horticulture / Specialist land values have seen the most significantly increases under the 2019 revaluation by sector, they have seen more modest changes in previous revaluations particularly in 2007 where most other sectors faced much greater increases.

4.19 With regards to communication, Council and Quoteable Value issued a joint press release in October in the local media outlining the general trends of the 2019 Revaluation.

4.20 Further communication has been added to Council’s Facebook page and its website, including showing the potential rating impacts of the revaluation on each property, using the 2019/20 rating budget.

4.21 Customer Service staff have seen an increase in their call volumes as a result of the district wide revaluation, although there doesn’t appear to be any reoccurring trends.

5.0 OPTIONS - NGĀ KŌWHIRINGA

5.1 The purpose of this report is to inform the Council of the impacts of the 2019 revaluation for the Hastings District.

5.2 If council is concerned about the rating impacts from the revaluation on a group of properties or particular sector, it could direct officers to explore options to potentially soften some of those impacts. It should be mindful that any intervention would move rates from those properties to others within the district, and that such intervention may set a precedent moving forward to resolve similar property impacts under future revaluations.

Attachments:

There are no attachments for this report.

SUMMARY OF CONSIDERATIONS - HE WHAKARĀPOPOTO WHAIWHAKAARO

Fit with purpose of Local Government - E noho hāngai pū ai ki te Rangatōpū-ā-rohe

This is an administrative report for information purposes only.

Link to the Council’s Community Outcomes - E noho hāngai pū ai ki te rautaki matua

N/A

Māori Impact Statement - Te Tauākī Kaupapa Māori

N/A

Sustainability - Te Toitūtanga

N/A

Financial considerations - Ngā Whaiwhakaaro Ahumoni

N/A

Significance and Engagement - Te Hiranga me te Tūhonotanga

N/A

Consultation – internal and/or external - Whakawhiti Whakaaro-ā-roto, ā-waho

N/A

Risks: Legal/ Health and Safety - Ngā Tūraru: Ngā Ture / Hauora me te Haumaru

N/A

Rural Community Board - Ngā Poari-ā-hapori

The rating revaluation covers the whole of Hastings District including rural areas.

File Ref: 19/1165

REPORT TO: Council

MEETING DATE: Wednesday 27 November 2019

FROM: Financial Controller

Aaron Wilson

SUBJECT: Financial Quarterly Report for the three months ended 30 September 2019

1.0 EXECUTIVE SUMMARY - TE KAUPAPA ME TE WHAKARĀPOPOTOTANGA

1.1 The purpose of this report is to inform Council of the financial result for the three months ended 30 September 2019.

1.2 This report contributes to the purpose of local government by primarily promoting economic wellbeing and more specifically through the Council’s strategic objective of ensuring all treasury activity within the Council is prudently managed.

1.3 This report recommends that the financial quarterly report for the three months ended 30 September 2019 be received.

1.4 Attachment one is the Dashboard for the first quarter.

1.5 Attachment Two is the October Financial Summary for Council provided as an update.

2.0 RECOMMENDATIONS - NGĀ TŪTOHUNGA

A) That the Council receives the report titled Financial Quarterly Report for the three months ended 30 September 2019

3.0 BACKGROUND – TE HOROPAKI

3.1 The accounting operating financial result is reported on quarterly during the year and at year end a report is prepared on the financial as well as the rating result. The rating result differs from the accounting result in respect of non-cash items such as depreciation, vested assets and development contributions that are not included.

3.2 This financial report is governance focussed and allows significant variances to be highlighted with explanations provided in a way this is easy to read and understand through dashboard analytics and commentary.

3.3 If Councillors require clarification on any points, please contact the writer prior to the meeting to ensure complete answers can be given at the meeting on the detail in these reports.

4.0 DISCUSSION - TE MATAPAKITANGA

4.1 Set out below is a summary of the operating financial result year to date. The financial results detailed below represent the accounting view and does not reflect the potential rating result for 2019/20:

	$’000	$’000	$’000	Full year Revised Budget*
2019/20	YTD Actual	YTD Revised Budget	YTD Variance	Full year Revised Budget*
Operating Revenue	34,242	32,440	1,802	136,810
Operating Expenditure	33,464	32,637	(826)	127,617
Net Surplus/(Deficit)	778	(197)	976	9,153

- Revised budget includes the Annual budget, Brought Forwards and surplus allocations from 18/19 financial year

4.2 The result above is presented against the revised budget. The revised budget includes changes and decisions made during the year on Council budgets which includes carry forwards from 2018/19.

4.3 Council’s overall financial performance is $0.976m ahead of the YTD budget for the quarter ended 30th September 2019. Revenue is favourable to budget by $1.802m and expenditure is unfavourable budget by $0.826m.

Revenue

4.4 Subsidies, grants and donations are unfavourable to YTD budget by $0.175m mainly driven by lower transport project subsidies.

4.5 Fees and charges revenue across Council are favourable by $1.143m with the main drivers being:

· Asset management is favourable to budget by $547k. This is driven by higher than budgeted revenues at the Landfill (203k), Water metre charges (106k), along with $204k subsidy received from the Ministry of Health for the drinking water booster pump project in Bridge Pa.

· Planning and Regulatory services are favourable to budget by $195k driven by higher building consents ($146k) revenue along with higher than budgeted parking revenues ($20k) and environmental health (19k).

· Community facilities and programme fees are favourable to budget by $230k mainly driven by insurance reimbursement (127k), Housing for the elderly (45k) along with a number of the pools being favourable to budget.

4.6 Development contributions are favourable to YTD budget by $0.589m. This positive variance is the result of residential sub-divisions in Frimley and Northwood being completed earlier than projected.

4.7 Phasing of budgets in relation to when contributions occur is difficult, and creates timing differences as it is not always known in advance in what month a payment will occur when the budget is being set.

Expenditure

4.8 Overall expenditure is tracking unfavourable to year to date budget as at 30th September 2019 by $0.826m or 3.0% of total budgeted expenditure year to date. Main drivers include:

4.9 The negative variance to budget for non-cash entries in terms of Depreciation ($0.658m) are driven by higher asset values due to prior year revaluations in Parks, along with increased spend on capital projects..

4.10 Other donations and grants in parks show an overspend of $280k to budget. This is a timing of spend versus the phasing of the budget and relates to the Council’s donation to the Te Mata Park Trust Board’s land purchase.

4.11 Finance costs are favourable by $453k which is a reflection of lower levels of debt than phased in the budget and lower actual interest rates compared with those assumed in the budget.

4.12 Costs to repair fire damage this financial year in Opera House have totalled $101k. These unbudgeted costs have been offset by the insurance settlement received in the revenue line.

4.13 Contracts for services show an overspend of $155k to budget. This is a timing of spend versus the phasing of the budget and relates to election expenses.

4.14 Drinking water services operational expenditure when split out shows a favourable variance to budget of $69K. Below shows a summary table of spend to budget in this area:

Craggy Range Track Project:

4.15 Council has spent $18k in the current financial year, ($586k in total) on the Craggy Range Te Mata Peak Track with the current years spend focused on remediation. The track remediation has since been completed with costs coming in under that estimated.

Areas of Interest

1. Building consents :

As was highlighted in the 2018/19 year end overview to Council, this is an area that has seen a large increase in volumes, with a corresponding increase in expenditure outstripping additional revenues.

This trend has continued in the new financial year, and as previously highlighted the revenues are ahead on last year’s actuals that were already strong. The impact of the higher volumes however is also reflected in higher than budgeted expenditure as shown in the table below, with the contracted services and personnel costs the main drivers in the rating requirement budget to actuals variance deficit of ($110K).

While Council is keeping up with demand the pressures of doing so are coming at additional cost that is not currently recoverable through the current fees and charges schedule.

YTD September	Variance to budget
Revenue	$145,678
Personnel	($126,458)
Legal Advice	($29,225)
Expert Advice	($11,235)
Contracted Services	($88,947)
Rating Requirement	($110,187)

2. Environmental Consents:

The second area where there has been ongoing high levels of demand is in the environmental consent area, with additional resources required to meet the ongoing demand. Those additional resources have been achieved through extra staff and the use of consultants to process consent applications.

It is likely that this area will experience increased legal costs for a number of outstanding consents going forward.

YTD September	Variance to budget
Revenue	$7,385
Contracted Services	($53,858)

Rating Requirement	($46,473)

Capital Spend

4.16 Council’s total capital budget (including carry forwards, renewals, new works, and growth projects) for 2019/20 is $106m. This level of expenditure is a significant increase on what has been delivered previously by Council and there is some risk associated with the ability of Council to deliver on this programme. Helping to offset some of this risk is a much more detailed programme understanding the various aspects of completion and requirements for each project.

4.17 Capital spend for the year to date is $18.4m. Whilst this is behind current year to date budget of $22.7m it is $3m ahead of last year’s actuals for the same period.

4.18 Major projects by segment within the three types of capital spend are shown below:

Treasury

Total net external borrowing as at the end of September 2019 is $115.7m including term deposits of $22m held for future capital work along with funding for term loans rolling over.

		30-Sep-19
		$'000

Borrowing at start of year		106,241
New Loans Drawn		34,400
Loan Repayments		(2,900)

Borrowings as at 30 September 2019		137,741
Less Term Deposits held		(22,000)
Total Net borrowings		115,741

Council is currently compliant with Treasury Management Policy. The Risk and Audit Subcommittee is responsible for reviewing Council’s treasury performance and policy with advice from PricewaterhouseCoopers (PwC).

SIGNIFICANCE AND CONSULTATION

This report does not raise any issues that are significant in terms of the Council’s Significance and Engagement Policy that would require consultation.

5.0 OPTIONS - NGĀ KŌWHIRINGA

Not applicable.

Attachments:

1 ⇩	Financial Management - Reports - Quarterly Reports - Quarter 1 DSHBRD September 2019	FIN-09-01-19-179
2 ⇩	Financial Summary for Council October 2019	FIN-09-01-19-180

SUMMARY OF CONSIDERATIONS - HE WHAKARĀPOPOTO WHAIWHAKAARO

Fit with purpose of Local Government - E noho hāngai pū ai ki te Rangatōpū-ā-rohe

The Council is required to give effect to the purpose of local government as set out in section 10 of the Local Government Act 2002. That purpose is to enable democratic local decision-making and action by (and on behalf of) communities, and to promote the social, economic, environmental, and cultural wellbeing of communities in the present and for the future.

Link to the Council’s Community Outcomes - E noho hāngai pū ai ki te rautaki matua

N/A

Māori Impact Statement - Te Tauākī Kaupapa Māori

N/A

Sustainability - Te Toitūtanga

N/A

Financial considerations - Ngā Whaiwhakaaro Ahumoni

N/A

Significance and Engagement - Te Hiranga me te Tūhonotanga

This decision/report has been assessed under the Council's Significance and Engagement Policy as being of <Enter text> significance.

Consultation – internal and/or external - Whakawhiti Whakaaro-ā-roto, ā-waho

No external engagement.

Risks: Legal/ Health and Safety - Ngā Tūraru: Ngā Ture / Hauora me te Haumaru

N/A

Rural Community Board - Ngā Poari-ā-hapori

N/A:

File Ref: 19/1133

REPORT TO: Council

MEETING DATE: Wednesday 27 November 2019

FROM: Manager: Democracy and Governance

Jackie Evans

SUBJECT: Requests Received Under the Local Government Official Information and Meetings Act (LGOIMA) Monthly Update

1.0 EXECUTIVE SUMMARY - TE KAUPAPA ME TE WHAKARĀPOPOTOTANGA

1.1 The purpose of this report is to inform the Council of the number of requests under the Local Government Official Information Act (LGOIMA) 1987 received in October 2019.

1.2 This issue arises from the provision of accurate reporting information to enable effective governance.

1.3 This is an administrative report to ensure that the Council is aware of the number and types of information requests received and to provide assurance the Council meeting its legislative obligations in relation to the Local Government Official Information and Meetings Act (LGOIMA).

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

2.0 RECOMMENDATIONS - NGĀ TŪTOHUNGA

A) That the Council receives the report titled Requests Received Under the Local Government Official Information and Meetings Act (LGOIMA) Monthly Update

B) That the LGOIMA requests received in October 2019 as set out in Attachment 1 (IRB-2-01-19-1790) of the report be noted.

3.0 BACKGROUND – TE HOROPAKI

3.1 The LGOIMA allows people to request official information held by local government agencies. It contains rules for how such requests should be handled, and provides a right to complain to the Ombudsman in certain situations. The LGOIMA also has provisions governing the conduct of meetings.

Principle of Availability

3.2 The principle of whether any official information is to be made available shall be determined, except where this Act otherwise expressly requires, in accordance with the purposes of this Act and the principle that the information shall be made available unless there is good reason for withholding it.

3.3 Purpose of the Act

3.4 The key purposes of the LGOIMA are to:

· Progressively increase the availability of official information held by agencies, and promote the open and public transaction of business at meetings, in order to:

· enable more effective public participation in decision making; and

· promote the accountability of members and officials; and

· so enhance respect for the law and promote good local government; and

· protect official information and the deliberations of local authorities to the extent consistent with the public interest and the preservation of personal privacy.

· City, district and regional councils, council controlled organisations and community boards are subject to LGOIMA and official information means any information held by an agency subject to the LGOIMA.

· It is not limited to documentary material, and includes material held in any format such as:

· written documents, reports, memoranda, letters, notes, emails and draft documents;

· non-written documentary information, such as material stored on or generated by computers, including databases, video or tape recordings;

· information which is known to an agency, but which has not yet been recorded in writing or otherwise (including knowledge of a particular matter held by an officer, employee or member of an agency in their official capacity);

· documents and manuals which set out the policies, principles, rules or guidelines for decision making by an agency;

· the reasons for any decisions that have been made about a person.

3.5 It does not matter where the information originated, or where it is currently located, as long as it is held by the agency. For example, the information could have been created by a third party and sent to the agency. The information could be held in the memory of an employee of the agency.

3.6 What does a LGOIMA request look like?

3.7 There is no set way in which a request must be made. A LGOIMA request is made in any case when a person asks an agency for access to specified official information. In particular:

· a request can be made in any form and communicated by any means, including orally;

· the requester does not need to refer to the LGOIMA; and

· the request can be made to any person in the agency.

3.8 The Council deals with in excess of 14,000 service requests on average each month from written requests, telephone calls and face to face contact. The LGOIMA requests dealt with in this report are specific requests for information logged under formal LGOIMA procedure, which sometimes require collation of information from different sources and/or assessment about the release of the information requested.

Key Timeframes

3.9 An agency must make a decision and communicate it to the requester ‘as soon as reasonably practicable’ and no later than 20 working days after the day on which the request was received.

3.10 The agency’s primary legal obligation is to notify the requester of the decision on the request ‘as soon as reasonably practicable’ and without undue delay. The reference to 20 working days is not the de facto goal but the maximum unless it is extended appropriately in accordance with the Act. Failure to comply with time limit may be the subject of a complaint to the ombudsman.

3.11 The Act provides for timeframes and extensions as there is a recognition that organisations have their own work programmes and that official information requests should not unduly interfere with that programme.

4.0 DISCUSSION - TE MATAPAKITANGA

Current Situation

4.1 Council has requested that official information requests be notified via a monthly report.

5.0 OPTIONS - NGĀ KŌWHIRINGA

Not applicable

Attachments:

1 ⇩

LGOIMA Monthly Report to Council - October 2019

IRB-2-01-19-1790

SUMMARY OF CONSIDERATIONS - HE WHAKARĀPOPOTO WHAIWHAKAARO

Fit with purpose of Local Government - E noho hāngai pū ai ki te Rangatōpū-ā-rohe

N/A

Link to the Council’s Community Outcomes - E noho hāngai pū ai ki te rautaki matua

N/A

Māori Impact Statement - Te Tauākī Kaupapa Māori

N/A

Sustainability - Te Toitūtanga

N/A

Financial considerations - Ngā Whaiwhakaaro Ahumoni

N/A

Significance and Engagement - Te Hiranga me te Tūhonotanga

N/A

Consultation – internal and/or external - Whakawhiti Whakaaro-ā-roto, ā-waho

N/A

Risks: Legal/ Health and Safety - Ngā Tūraru: Ngā Ture / Hauora me te Haumaru

N/A

Rural Community Board - Ngā Poari-ā-hapori

N/A

File Ref: 19/1164

REPORT TO: Council

MEETING DATE: Wednesday 27 November 2019

FROM: Manager: Democracy and Governance

Jackie Evans

SUBJECT: Update 2019 Meeting Schedule and interim appointment and delegation arrangements pending the introduction of the 2019-2022 Committee Structure

1.0 PURPOSE AND SUMMARY - TE KAUPAPA ME TE WHAKARĀPOPOTOTANGA

1.1 The purpose of this report is to obtain a decision from the Council to make arrangements for minor delegated decisions which cannot wait until the next Council meeting and representation on outside bodies on meetings up until the end of the year and to consider amendments to the schedule of Council and Committee Meetings for the 2019 Meeting Calendar which was adopted by Council 6 December 2018.

1.2 This report recommends that the 2019 Meeting Schedule as amended below be adopted.

1.3 The Local Government Act 2002, Schedule 7, Clause 19 states:

(4) A local authority must hold meetings at the times and places that it appoints”.

(5)

(6) If a local authority adopts a schedule of meetings-

a) The schedule-

i) may cover any future period that the local authority considers appropriate, and

ii) may be amended

1.4 Although a local authority must hold the ordinary meetings appointed, it is competent for the authority at a meeting to amend the schedule of dates, times and number of meetings to enable the business of the Council to be managed in an effective way.

Interim Appointments and Delegation Arrangements

1.5 The Local Government Act 2002 provides that all existing elected members vacate their positions when the members elected at the triennial election come into office, which is the day after the public notice officially declaring the result of the election is published. Thus even if a member is re-elected they actually leave and then come back into office as a new member.

1.6 In addition, any existing committee is deemed to be discharged on the coming into office of the members elected at that election. As a result of these provisions all Committees and appointments need to be re-made. A review of the committee structure and delegation arrangements is currently underway. In the meantime, where possible governing body decisions will be made by full Council.

1.7 Appointments and delegations (where appropriate) need to be made to the following bodies to ensure that the following groups can meet prior or just after to the next Council meeting.

1.8 Creative Communities and Local Funding Assessment Committee (2 members)

1.9 Omarunui Refuse Landfill Joint Committee (4 Councillors) Heads of Agreement (copy attached).

1.10 The following meetings are proposed to be included in the 2019 meeting schedule:

Committee	Date	Time	Venue
Omarunui Refuse Landfill Joint Committee	10 December 2019	9.00am	Council Chamber
Creative Communities and Local Funding Assessment Committee	6 December 2019	11.30am	Guilin Room
Landmarks Advisory Group	18 December 2019	3.00pm	Landmarks Room
Council	10 December 2019 (changed from 12 December 2019)	1.00 pm	Council Chamber

1.11 This report concludes by recommending that the Council adopt the meeting schedule as outlined.

2.0 RECOMMENDATIONS - NGĀ TŪTOHUNGA

A) That the Council receives the report titled Update 2019 Meeting Schedule and interim appointment and delegation arrangements pending the introduction of the 2019-2022 Committee Structure.

B) That the following appointments be made to Creative Communities and Local Funding Assessment Committee for the 2019-22 triennium

C) That the Omarunui Refuse Joint Landfill Committee be re-established according to the Heads of Agreement as set out in Attachment 1 to the report and the following Councillors be appointed to the Committee for the 2019- 22 triennium.

D) The Council approve the following amendments to the 2019 meeting schedule:

Committee	Date	Time	Venue
Omarunui Refuse Landfill Joint Committee	10 December 2019	10.00am	Council Chamber
Creative Communities Local Funding Assessment Committee	6 December 2019	11.30am	Guilin Room
Landmarks Advisory Group	18 December 2019	3.30pm	Landmarks Room
Council	10 December 2019 (changed from 12 December 2019)	1.00pm	Council Chamber

Attachments:

1 ⇩

Solid Waste - Omarunui Landfill - Revised Final Heads of Agreement Omarunui Joint Refuse Landfill Committee 4 October 2010

SW-5-12-1031

Solid Waste - Omarunui Landfill - Revised Final Heads of Agreement Omarunui Joint Refuse Landfill Committee 4 October 2010

Attachment 1

OMARUNUI REFUSE LANDFILL JOINT COMMITTEE HEADS OF AGREEMENT

Heads of Agreement dated the 4^th day of October 2010

1.	Parties:	Hastings District Council and Napier City Council (the Councils)
2.	Nature of Relationship	A Joint Committee between the Councils who already own a property at Omarunui as tenants in common in the following shareholding percentages for refuse disposal purposes: Hastings District Council: 63.68% Napier City Council: 36.32%
3.	Objectives	To jointly develop and operate generally for the benefit of the Councils a refuse disposal facility (including any ancillary activities) in compliance with resource and regulatory consents.
4.	Participation of each Council	Each Council shall participate on the basis of the following shareholding percentage: Hastings District Council – 63.68% Napier City Council – 36.32% (subject to any specific provisions following)
5.	Joint Committee
5.1	Omarunui Refuse Landfill Joint Committee (Joint Committee):	This Committee shall comprise four elected members of the Hastings District Council and two elected members of the Napier City Council or the alternates of those elected members and an alternate when acting in the place of an elected member shall be deemed to be an elected member. The functions of this Joint Committee shall be to determine policies to ensure the objectives are achieved and to monitor the implementation of those policies by obtaining reports from the Facility Manager or any other persons involved in the refuse disposal operation.
5.2	Administering Authority	The Hastings District Council shall be the Administering Authority. It shall provide technical, financial and secretarial services and shall be the employing authority for staff required in the administration and conduct of the refuse disposal operation. The Administering Authority shall make any information required by the Joint Committee available to that Committee.
6.	Joint Committee General Powers	6.1 Subject to Clause 6.2 the general powers of the Joint Committee shall be: a. Except as provided in Clause 6.3 all such powers as shall be necessary to develop and operate the refuse disposal facility in compliance with the resource and regulatory consents already obtained including, if necessary, the power to seek further resource and regulatory consents. b. To construct buildings, purchase and dispose of plant, equipment and materials. c. Arrange insurance cover to ensure that there is comprehensive insurance in respect of the establishment and operation of the refuse disposal facility. d. To indemnify any Council or Council representative acting on behalf of the Councils pursuant to this agreement in connection with the development or operation of the refuse disposal operation after the execution hereof. e. To fix and recover fees and charges payable by landfill users. f. The licensing of users. g. To recommend to the Councils the raising of loans. For the purpose of loan raising the ‘Administering Authority’ shall undertake all loan raising on behalf of the Councils. h. To enter into contracts within the estimates it being acknowledged by each of the Councils for the purposes of the Local Government Act 2002 that the Joint Committee shall be delegated power to enter into any contract limited to such an amount as may be fixed by the Councils from time to time unless the prior written approval of each Council shall have been obtained. i. To use any part of the Omarunui property not required for refuse disposal for any lawful purpose including the leasing thereof. j. Such further specific powers as may be delegated to it as agreed by the Councils. 6.2 The Joint Committee shall operate within budgets approved by the Councils. In the event that overexpenditure is anticipated or incurred the Joint Committee shall immediately report that fact to the Councils. 6.3 The powers delegated to the Joint Committee shall not entitle that Committee to sell or otherwise dispose of on behalf of any Council any asset owned by that individual Council or to sell the Omarunui land or any other land administered by the Joint Committee for refuse disposal purposes. 6.4 Subject to Clause 6.2 and 6.3 all decisions made by the Joint Committee pursuant to its delegated powers shall without confirmation of the Councils bind each of the Councils as if it had been done in the name of each Council.
7.	Joint Committee Procedural Matters	7.1 Each elected member or the alternate of such member shall have one vote. 7.2 The elected members shall elect a Chairman and Deputy Chairman. 7.3 Quorum at meetings shall be four elected members including at least one elected member from each Council. The parties note that this conflicts with the provisions in clause 30 (9) (b) of schedule 7 of the Local Government Act 2002. To avoid any possible doubt the parties shall operate the committee based on the specific requirements in this agreement at all times. 7.4 All meetings may be attended by officers of the Councils but officers shall not be entitled to vote. 7.5 Meetings may be requisitioned by any two elected members who shall state the nature of the business and the Administering Authority shall convene a meeting (giving notice of the business) and Councils shall ensure that at least one of their elected members attends. 7.6 Annual meetings shall be held within three months of the end of the financial year and the business of such meeting shall include the financial accounts for the previous year. 7.7 Budget estimates for the following financial year shall be prepared and supplied to the Councils no later than 31 January in each year for their approval. 7.8 Meeting procedures shall be in accordance with NZS 9202: 2003, or such other version of standing orders as mutually agreed between the parties, except to the extent that specific provision is contained herein and is not contrary to law.
8.	Joint Committee Financial Provisions	8.1 The Joint Committee shall provide financial and management accounting records and reports which provide sufficient detail to enable the committee and the Councils to assess performance of each separate business activity within the Landfill. 8.2 The administering authority shall circulate a draft budget prior to the meeting at which the Joint Committee is to consider the estimates for recommendation to the Councils. 8.3 Surpluses and deficits shall be received and borne by the Councils in the following shareholding percentage: Hastings District Council – 63.68% Napier City Council – 36.32% 8.4 All amounts payable by each Council shall be paid within one calendar month of notification of the amount payable. If any Council shall consistently fail to make payments as required by this clause the Joint Committee may impose a penalty on the defaulting Council which shall be met by such Council.
9.	Duties of the Individual Councils	9.1 To comply with the resource and regulatory consents relating to the operation. 9.2 The Councils shall make bylaws to ensure the efficient operation of the refuse disposal facility and set and adopt fees and charges and licensing procedures. 9.3 To establish and operate transfer stations and to adopt charges in relation to such transfer stations.
10.	Changes in Participation	10.1 The establishment and operating costs of the Councils up to the time of any Change in Participation shall be safeguarded as far as possible. 10.2 The addition or withdrawal of any party shall require agreement of the Councils.
11.	Staff Appointments	11.1 Where any Council is involved in the provision of staff or services, such Council shall be reimbursed for the cost of such persons or services. 11.2 It is recognised that it will be desirable for the staff required to be employed by one of the Councils.
12.	Facility Manager	12.1 The Facility Manager appointed by the Administering Authority shall be a suitably qualified person who shall report to the Joint Committee and attend its meetings and will be responsible for the day to day operations at the landfill site. 12.2 During any further development the Facility Manager, as appointed by the Administering Authority, shall be considered to be the officer responsible for all development activities unless otherwise directed by the Joint Committee.
13.	Secretarial Services	13.1 Secretarial and Accounting services shall be provided by the Administering Authority. 13.2 The functions to be fulfilled shall include: a. Convening of meetings. b. Keeping of minutes. c. Preparation of estimates and accounts. d. Keeping the Joint Committee informed. e. The recovery of fees and charges. f. Such further specific powers as may be delegated by agreement of the Councils. 13.3 All documents to be signed on behalf of the Joint Committee shall be signed by the Chairman (or in his absence one elected member of that Committee) together with such other person authorised by the Administering Authority.
14.	Commencement and Duration	14.1 This Joint Committee shall commence from the date of this agreement and shall continue thereafter until terminated by agreement of the Councils. 14.2 On termination of this agreement the assets shall be applied, first, in the repayment of all debts, second, in the repayment of any capital contributions, advances or sums of money that may have been made or may be due to any of the Councils, third, the surplus, if any, shall be distributed between the Councils in the following shareholding percentage: Hastings District Council – 63.68% Napier City Council – 36.32% 14.3 In the event of a short-fall on the termination of this agreement the Councils shall contribute in the following shareholding percentage: Hastings District Council – 63.68% Napier City Council – 36.32% to such short-fall, with any necessary adjustments being made to reflect any amounts due by or to any individual Council at termination.
15.	Arbitration	15.1 In the event of any dispute relating to this agreement the same shall be referred to arbitration pursuant to the Arbitration Act 1996 and each Council who is a party to the dispute shall be entitled to appoint an Arbitrator. 15.2 The Arbitrators before embarking on the Arbitration shall appoint an umpire whose decision shall be final in the event that the Arbitrators are unable to agree.
16.	Substitution	16.1 It is agreed and acknowledged that this agreement shall take effect and be in substitution for the Heads of Agreement between the parties dated 18 February 1993.

Completed
Outstanding
Month	From	Subject	Total
October	NZ Green Building Council	Building Energy Performance
	Individual	Investigation into release of contaminants
	Mediaworks	Information regarding Water Central proposal
	Radio NZ	Information on proposed Water Museum
	HB Today	Information on Water Central proposal
	Individual	Dog attacks
	Individual	Dog attack
	Individual	Spraying of Roadsides, Playgrounds & Parks
	Individual	Information on Resource Consent
	Individual	Plastic Recycling
	NZ Taxpayers Union	Staff Remuneration Exceeding $250,000
	Individual	Complaints in relation to a property
	Individual	Water supply and development Waimarama Road
	Stuff	External catering costs 2017-2019
	Individual	Submissions and applications for cell towers
	Individual	Turamoe Road, Paki Paki
	Office of the Auditor-General	Wastewater Consent information (Request withdrawn 31/10/19)	17

Hastings District Council

Lyndon Road East, Hastings