Te
Hui o Te Kaunihera ā-Rohe o Heretaunga
Hastings
District Council: Council Meeting
Te
Rārangi Take
Report to Council
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Nā:
From:
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Louise Stettner,
Manager, Democracy & Governance Services
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Te Take:
Subject:
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Māori Ward Decision
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1.0 Executive Summary – Te Kaupapa Me Te
Whakarāpopototanga
1.1 The
Government has enacted the Local Government (Electoral Legislation and
Māori Wards and Māori Constituencies) Amendment Act 2024 (the Act).
1.2 The
Act reinstates the ability for binding polls on the establishment of Māori
wards and provides a transitional poll mechanism for councils that either
resolved to establish or established Māori wards without a poll.
1.3 Schedule
1 of the Act applies to Council which established its Māori ward
(Takitimu) ahead of the 2022 election.
1.4 By
6 September 2024 Council must resolve either to affirm it’s Māori
ward or to disestablish it’s Māori ward.
1.5 The
Local Government Commission and the Department of Internal Affairs have
promulgated advice that Councils affected by Schedule 1 of the Act, are
required to make this decision, even if they have previously resolved to affirm
their Māori wards prior to 31 July 2024.
1.6 Council
at its meeting held on 23 May 2024, resolved;
· That Council
receive the report titled Retention of the Takitimu Māori Ward dated 23
May 2024.
· That Council
resolve to retain its Takitimu Māori Ward.
· That Council notes
the Heretaunga Takoto Noa Māori Standing Committee at its meeting on 8 May
2024 resolved that the Committee wants to retain the Takitimu Māori Ward.
The
report for the Council meeting on 23 May 2024, is attached as Attachment 1, to
provide context.
1.7 The
Special Consultative Procedure under the Local Government Act 2002 does not
apply to the decision to affirm Māori wards, or to disestablish Māori
wards.
1.8 In
2021 Council undertook the Special Consultative Procedure prior to making its
decision to incorporate Māori wards within its governance
arrangements. This consultation provided Council an understanding of the
spectrum of community views on this matter.
1.9 Council
undertook further community consultation, as required for its Representation
Review under the Local Electoral Act 2001. Representation Reviews are
undertaken by local authorities to ensure residents have fair and effective
representation at local elections.
1.10 On
6 April 2022, the Local Government Commission determined the representation
arrangements that would apply to the 2022 Hastings District Council local
elections.
1.11 If
Council resolves to affirm its resolution to establish Māori wards,
Council is required to have a poll alongside the 2025 Election on whether the
Hastings District should be divided into one or more Māori
wards. The results of the poll will be in place for two local body
elections – 2028 and 2031.
1.12 If
Council resolves to disestablish its Māori wards, it must also resolve by
6 September 2024 to either complete a shortened Representation Review process
by early April 2025 or Council may be able to revert to its most recent
representation arrangements before Māori wards were established. (previous
arrangements must still meet the statutory requirements for fair and effective
representation). A decision to disestablish would come into effect for
the 2025 local body elections and remain in place for 2025 and 2028.
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2.0 Recommendations - Ngā Tūtohunga
A) That Council receive the
report titled Māori Ward Decision dated 27 August 2024.
B) Council notes that it
understands the spectrum of views held by the community with respect to
Māori Wards, from consultation processes with the community in 2021 and
leading into 2022.
C) Council notes the
Heretaunga Takoto Noa Māori Standing Committee at its meeting on 8 May
2024 resolved that the Committee wants to retain the Takitimu Māori
Ward.
D) Council notes that a
resolution to affirm retention of Council’s Takitimu Māori Ward
will result in a Binding Poll alongside the 2025 election.
E) Council notes that
a resolution to disestablish Council’s Takitimu Maōri Ward means
that Council will need to resolve how representation arrangements for the
2025 Election will be set, - either revert to the 2019 Election arrangements
OR undertake a shortened Representation Review under the Local Electoral Act
2001.
F) That
the Council resolve to:
G) Retain
the Takitimu Māori Ward for the 2025 Local Government Election.
OR
H)
Disestablish the Takitimu Māori Ward for the 2025 Local Government
Election.
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3.0 Background – Te Horopaki
3.1 At
the Council meeting on 23 May 2024 Council resolved ‘to retain its
Takitimu Māori Ward’. This decision was prompted by Government
proposals to re-instate the poll provision for establishing Māori wards in
place prior to 2021. The context for Council’s decision at this
time is outlined in the Council Report ‘Retention of the Takitimu
Māori Ward’ dated 23 May 2024 (Attachment 1).
3.2 The Local
Government (Electoral Legislation and Māori Wards and Māori
Constituencies) Amendment Act 2024 (The Act) came into force on 31 July 2024.
3.3 The
Act amends the Local Electoral Act 2001, the Local Government Electoral
Legislation Act 2023 and the Local Electoral Regulations 2001.
3.4 The
Act reinstates the binding polls mechanism for the establishment of Māori
wards that was removed from the Local Electoral Act 2001 in 2021.
3.5 From
12 October 2025, councils can resolve to hold binding polls on Māori wards
and people on the electoral roll can petition their council to hold one.
Binding polls are reinstated with the same policy settings as they were before
2021:
· a petition from 5%
(or more) of electors on Council’s roll at the last local body elections
would require Council to hold a binding poll.
· any person on the
electoral roll for Council would be able to vote.
· a simple majority
would bind Council to an outcome.
· the outcomes of a
poll would decide whether Council has Māori wards for the next two local
government terms.
3.6 The
Act removes the requirement under the Local Government Electoral Legislation
Act 2023 for councils to consider Māori wards every six years during their
representation reviews if they have not established Māori wards.
3.7 The
Act includes in Schedule 1 of the Local Electoral Act 2002, transitional
provisions for local authorities that have established, or resolved to
establish, Māori wards without a binding poll since 2020. Schedule 1
requires those local authorities to:
· affirm the
decision to establish Māori wards and hold a binding poll at the 2025
elections: or
· reverse their
Māori wards decision this year with no requirement for a poll at the 2025
elections.
3.8 Schedule
1 applies to Council as it established Māori wards in 2021.
3.9 By
6 September 2024 Council must resolve either to affirm its Māori wards or
to disestablish them.
3.10 The
Local Government Commission and the Department of Internal Affairs advise that
all Group 1 local authorities are required to make this decision, even if they
have previously resolved to affirm their Māori wards prior to 31 July
2024.
3.11 Local
authorities that resolve to disestablish their Māori wards have two
options for their 2025 representation arrangements:
· Complete a
shortened representation review process by early April 2025; or
· In some cases,
councils may revert to their most recent representation arrangements before
Māori wards were established (this option will only be available if the
previous arrangements will still meet the statutory requirements for fair and
effective representation).
3.12 For
local authorities that have held a poll alongside the 2025 election, the next
opportunity to consider the establishment or disestablishment of Māori
wards is ahead of the 2034 elections. Such change could happen in the
following ways:
· The local
authority could decide to establish or disestablish their Māori
wards. That decision could then be subject to a further poll if a
petition of at least 5% of electors is received within the requisite
timeframes; or
· The local
authority could resolve itself to hold a further poll on whether the local
authority should be divided into one or more Māori wards or
· A petition of at
least 5% of electors could be received requesting that the local authority
either establish or disestablish its Māori wards. If this occurs the
local authority will be required to hold a further poll on this matter.
3.13 If
no changes are made ahead of the 2034 election, then the 2025 election poll
result continues to have effect for future elections beyond 2034, unless or
until one of the actions in paragraph 3.12 takes place.
3.14 The
timing of a local authority’s next representation review will depend on
which action it has chosen to take under the Schedule1 transitional provisions,
and on the outcome of any poll held on whether Māori wards will be
retained or disestablished.
3.15 Where
a poll held in conjunction with the 2025 elections results in the retention of
Māori wards the requirement for the next representation review follows the
local authority’s regular review schedule.
3.16 Where
a poll held in conjunction with the 2025 elections results in the
disestablishment of Māori wards the local authority must undertake a
representation review in 2027.
4.0 Discussion – Te Matapakitanga
4.1 Although
Council resolved in May this year to retain its Takitimu Māori Ward, the
Local Government Commission and the Department of Internal Affairs advise that
this decision needs to be resolved after the Act has been passed (31 July 2024)
and before 6 September 2024. To be compliant with the Act Council must
make a decision within this timeframe.
4.2 The
Special Consultative Procedure does not apply to the decision to affirm
Māori wards or disestablish. Ahead of Council’s decision to
incorporate Māori wards in its representation arrangements in 2021 it
undertook a Special Consultative Procedure. Through that process Council
was made aware of the spectrum of views held by the community.
4.3 Council
can continue to consult the community further on this matter. The Crown
continues to enact legislation relevant to Māori Wards at a rapid pace.
4.4 Officers
recommend that eighteen working days from enacting the legislation to the
requisite Council Meeting to decide, does not allow time for any meaningful
community engagement or consultation to provide any new information for the
Council to take into consideration.
5.0 Options – Ngā Kōwhiringa
Option One - Te Kōwhiringa
Tuatahi
5.1 Council
resolves to affirm Māori Wards.
Advantages
· Aligns
with the previous decision by Council to establish Māori wards, which was
informed by comprehensive community consultation and engagement.
· Supports
the important contributions that Māori are making to local government.
· Supports
Māori participation in local decision-making and elections.
· Supports
the relationships that Council has with mana whenua.
Disadvantages
· Other
than the costs of administering a Pole, no disadvantages are noted.
Option 2 – Te Kōwhiringa
Tuarua
5.2 Council
resolves to disestablish Māori Wards.
Advantages
· Other
than the costs of administering a Poll, no advantages are noted.
Disadvantages
· The advantages
detailed in 5.1 would be foregone.
6.0 Next steps – Te Anga Whakamua
6.1 If
Council resolves to keep Māori wards, Council will be required to hold a
mandatory poll alongside the 2025 election. The result of that decision
will be in place for the 2028 and 2031 elections.
6.2 If
Council resolves to disestablish Māori wards it will need to resolve how
representation arrangements for the 2025 Election will be set by 6 September
2024. The two options are to: complete a shortened representation review
process by early April 2025; or revert to its most recent representation
arrangements before Māori wards were established.
Attachments:
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1⇨
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Retention of the Takitimu Maori Ward - Report to Council
23 May 2024
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CG-17-1-01121
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Vol 1
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Summary of
Considerations - He Whakarāpopoto Whakaarohanga
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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 –
Ngā Hononga ki Ngā Putanga ā-Hapori
Council’s decision will consider the wellbeing of communities in the present and for the future.
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Māori
Impact Statement -
Te Tauākī Kaupapa Māori
Māori
wards support the provision of fair representation for Māori and honour
the principles of the Treaty of Waitangi, including the principles of
participation and partnership. The Takitimu Māori Ward supports
Māori participation in decision-making and elections.
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Sustainability
- Te
Toitūtanga
N/A
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Financial
considerations -
Ngā Whakaarohanga Ahumoni
If the Council resolves to affirm
its Takitimu Māori Ward, the indicative cost of a Poll is $75,000 and
costs associated with encouraging community participation in the poll.
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Significance
and Engagement -
Te Hiranga me te Tūhonotanga
This decision has been assessed
under the Council’s Significance and Engagement Policy as being a high
level of significance. It is significant in terms of the number of
people affected, the level of public interest and extent of significance.
This significance led to Council completing a special consultative procedure
in 2021 prior to Council making its initial decision as to whether it wished
to include Māori wards in its representation arrangements.
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Consultation
– internal and/or external - Whakawhiti Whakaaro-ā-roto / ā-waho
Schedule
1 of the Act notes that the special consultative procedure does not apply to
decisions to affirm or disestablish Māori wards and is otherwise silent
on how local authorities should engage with their communities on this issue.
Council established Māori
Wards on 18 May 2021. This decision was made following a special
consultative procedure between 23 April and 12 May 2021. It was publicised
across print, social media, traditional media channels, on Council’s website,
through flyers to rural areas that may not have online or receive print
newspapers, and hard copies and submission boxes were made available at the
Council Customer Services Centre, libraries, and community centres. The
consultation also included hui and kānohi ki te kānohi (face to
face) meetings.
In total 2089 responses were
received with 76 per cent in support of establishing Māori Wards and 24
per cent against. Those in support said Māori wards would honour Te
Tiriti O Waitangi, acknowledge mana whenua, ensure a Māori perspective
in the Council Chamber, remove barriers for representation, and improve
working relationships.
The main themes in submissions
against the proposal were that the current system was working, with
Māori councillors elected on their merits by everybody, and that
establishing wards based on race was separatist and created “us and
them” division.
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Rural
Community Board –
Te Poari Tuawhenua-ā-Hapori
Officers have not consulted the
Rural Community Board on this Report. The Board was involved in the initial
Council decision to establish Māori wards in 2021.
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Hastings
District Council: Council Meeting
Te Rārangi Take
Report to Council
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Nā:
From:
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Naomi Fergusson, Group
Manager: Marketing & Communications
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Te Take:
Subject:
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Arts Inc. Heretaunga
Business Plan - Hawke's Bay Arts Festival
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1.0 Executive Summary – Te Kaupapa Me
Te Whakarāpopototanga
1.1 The
purpose of this report is to consider a decision relating to a funding
application by Arts Inc. Heretaunga (AIH) for the Hawke’s Bay Arts
Festival (Festival).
1.2 In
making the recommendation, the Report steps through consideration of three
high-level decisions for Council, being:
· Should Council
fund an art festival?
· AIH's proposal for
a biennial Hawke’s Bay Arts Festival – does it positively support
the potential benefits through its event offering?
· If Council does
not support the proposal, what are the alternative investment options for the
$120,000 provided for in the Events Budget 2024-2027?
1.3 Based on the
discussion relating to 1.2, this Report addresses Council Resolution E in
respect of Agenda Item 7 ‘Funding - Arts Inc. Heretaunga’ (AIH)
which requires the provision of a Business Plan from AIH detailing
the events programme and expected outcomes of the Hawke’s Bay Arts Festival.
(Council Meeting on 23 May 2024).
Agenda Item 7: Funding – Arts Inc. Heretaunga
E) Council notes that the
$120,000 primarily allocated to support delivery of the Arts Festival (annual
allocation for 3 years with a whole of contract commitment of $360,000) in
Recommendation B for delivery of events, is subject to Council approval of a Business
Plan which details the events programme and expected outcomes. A future Council
decision may amend the $120,000 funding allocation. This Council approval will
inform the Chief Executives delegation in Recommendation C).
1.4 The
Council Report from 23 May 2024 (referred to in 1.3) is attached as (Attachment
1) to provide background and context for this Report.
1.5 AIH
have provided business plan documentation that is attached as (Attachment 2)
and the Hawke’s Bay Arts Festival business case (Attachment 3).
1.6 Councillor
agenda discussion on 23 May 2024 reflected concerns about the 3-year funding
quantum commitment of $360,000, the associated risks of fiscal sustainability
of AIH and the quantity/quality of Festival events to be delivered given the
main event would reduce from annual to biannual delivery.
1.7 The
report concludes by recommending that the Council approve the business plan for
the Hawke’s Bay Arts Festival and fund the festival with $60,000 per
annum for two years from the events budget (total contract value of $120,000).
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2.0 Recommendations -
Ngā Tūtohunga
A) That Council
receive the report titled Arts Inc. Heretaunga Business Plan - Hawke's Bay
Arts Festival dated 27 August 2024.
B) That Council
uplift the report titled Arts Inc. Heretaunga Business Plan –
Hawke’s Bay Arts Festival which was ‘left to lie on the table and
not further discussed at the meeting’ per section 25.2 (d) of the
Hastings District Council Standing Orders at the Council meeting on Thursday
8 August 2024.
C) That
Council notes it’s resolution from the Council Meeting held on 23 May
2024, in respect of Agenda Item 7 ‘Funding - Arts Inc.
Heretaunga’ (AIH) namely - Council notes that the $120,000 primarily
allocated to support delivery of the Arts Festival (annual allocation for 3
years with a whole of contract commitment of $360,000) in Recommendation B
for delivery of events, is subject to Council approval of a Business Plan
which details the events programme and expected outcomes. A future Council
decision may amend the $120,000 funding allocation. This Council approval
will inform the Chief Executives delegation in Recommendation C).
D) That Council approve the AIH Business Plan
detailing the events programme and expected outcomes of the Hawke’s Bay
Arts Festival. (Attached as Attachment 3).
E) That
Council approves a grant of $60,000 annually for two financial years (2024/25
to 2025/2026 from the Events budget) to support the delivery of the biennial
Hawke’s Bay Arts Festival.
F) That
Council delegate and direct the Chief Executive to execute a Contract for
Service between Council and AIH, which addresses Section 17A (5) of the Local
Government Act 2002 relating to Council funding. This Contract will have
clear milestones and performance measures for the Festival with associated
phased disbursement of funds. Subject to adherence to Contract Dispute
Resolution processes, Council will be able to cancel the Contract for
non-achievement of milestones, thus mitigating any future funding risks.
G) That
Council notes the Chief Executive will ensure Council Officers actively
manage the Contract for Service in Recommendation F to protect Council
interests and help ensure AIH sustainability and delivery of sought after
Festival outcomes.
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3.0 Background
3.1 Refer Sections 3 and 4
of Attachment 1.
4.0 Discussion
4.1 The
purpose of local government is set out under the Local Government Act 2002, S10
(1) (b) as ‘to promote the social, economic, environmental, and cultural
well-being of communities in the present and for the future’.
4.2 To
contribute to social and cultural well-being, the Council supports creative
arts through rates-funded contributions to the operation of arts-focused
council facilities (Toitoi, Hastings City Art Gallery) and via the Community
Grants, City Centre Vibrancy Fund, Events Fund and through administration
of the Creative NZ Creative Communities Scheme.
4.3 This section of the
Report addresses the three key questions relating to the funding of the
Festival.
· Should
Council fund an arts festival, based on the potential benefits to the
community?
· If
the Council believes in supporting an arts festival and associated benefits,
does AIH's proposal satisfy the Council that the desired benefits can be
achieved through its event offering?
· If
Council does not believe an arts festival provides additional benefits to
Hastings District, what alternative options are there for the $120,000 that
would be unallocated from the Events Budget 2024-2027?
4.4 Benefits of arts
festivals
4.4.1 The proposal for
the establishment of the Hawke’s Bay Arts Festival was put forward by
Creative Hastings (now Arts Inc. Heretaunga) in 2015 following the closure of
the Hawke’s Bay Opera House due to its assessment as an earthquake-prone
building.
4.4.2 Council supported
the 2015 Festival with $85,000 grant funding from the Hawke’s Bay Opera
House operational budget, a $50,000 underwrite and in-kind support from other Council
operational budgets, in particular the marketing and events budgets. In
recent years, the funding has been $120,000 per year for an annual festival
event, which was initially driven by the cost of hiring the Spiegel Tent and
other costs to create an event venue when the Opera House closed.
4.4.3 The Hawke’s
Bay Opera House was re-opened in 2020 as Toitoi – Hawke’s Bay Arts
and Events Centre. The festival has continued to run, at the same funding
level, utilising Toitoi and other venues within the region. The last festival
generated approx. $40,000 in venue hire revenue for Toitoi.
4.4.4 Festivals have
become an integral part of cultural, social, and economic landscapes in many
cities in New Zealand and around the world. For Hastings, the Hawke’s Bay
Arts Festival provides numerous benefits as below:
4.4.5 In terms of
strategic alignment, The Hawke’s Bay Arts Festival aligns with:
· The
programming strategy and objectives of Toitoi Hawke’s Bay Arts &
Events Centre,
· The
Toi-Tū, the regional strategic framework for supporting creatives and
creativity in Hawke’s Bay, and
· The
Council Event Strategy objectives of celebrating culture & heritage,
enhancing civic pride and fostering health and wellbeing. It also
meets the favourable consideration factors or being in the shoulder season and
taking place in a Council owned venue.
4.5 Cultural
and social benefits are a ‘public good’ and intrinsic, relying on
qualitative data. For that reason, benefits are not easily measurable in terms
of a return on investment. A review of journal articles shows a consistent
theme of arts festivals providing a positive impact on cultural and social
wellbeing, particularly perceptions of quality of life, with the impact varying
based on the nature of the festival (tourism or community-centric, programming,
etc).
4.6 Depending
on programming, some examples of benefits may include:
- Showcasing
local talent: providing a platform for local artists, musicians, and
performers, enriching cultural capability, supporting representation,
supporting employment pathways in creative arts, and fostering community pride
in Hastings' unique cultural heritage.
- Community
engagement: Festivals create opportunities for social interaction,
fostering a sense of belonging and community cohesion. They also encourage
volunteerism and civic engagement.
- Cultural
identity: The festival enhances the city's cultural identity, positioning
Hastings as a vibrant and culturally rich destination to live, work and visit.
4.7 Festivals
can contribute economic benefits when promoted as a visitor experience to
markets outside of the host region. To date, the Hawke’s Bay Arts
Festival has focused promotion to Hawke’s Bay audiences, including
accessible programming for schools.
- Local
economy stimulation: Festivals can boost local spending on services, goods,
and hospitality, supporting employment in the creative arts and events
industries. The Event Economics report from Hawke’s Bay Arts Festival
2022 showed a negative real change in GDP of—$24,624. It should be noted
the event made a loss of -$120,000 while also delivering many free and low-cost
events in a ‘post-COVID’ environment.
- Tourism:
Attracting visitors from outside the region increases occupancy rates in local
accommodations, boosts restaurant business, and increases retail sales. This
has not previously been a focus for the Festival, but events with a significant
offering and effective promotion to target domestic visitor markets can lift
occupancy rates.
- Reputation
and visibility: A successful festival can be leveraged to achieve positive
media attention, enhancing Hastings' reputation and visibility as a cultural
hub. This aligns with Councils positioning of Hastings.
4.7.1 Many regions with
a performing arts venue also host arts festivals. While venues provide access
to the arts year-round, there are synergies between venues and festivals that
align with Toitoi:
- Complementary
roles: The festival provides variety and excitement at specific times,
while Toitoi ensures continuous access to the arts. This combination broadens
the overall audience for the arts. Toitoi also has extensive knowledge of local
preferences to support development of a programme that will appeal to audience
preferences while providing for exposure for, and testing of, new offerings.
- Enhanced
offerings: There are synergies between festival programming and Toitoi
programming that enhance the city's cultural offerings. Toitoi has a
programming strategy that is supported through hosting festival events. Toitoi
has a very limited budget for booking events of festival quality and uses a
profit-share model. Without a festival, Toitoi programming would reduce and/or
require a higher risk tolerance for booking more shows directly. Arts
festivals also enable Toitoi to use spaces in different ways, supporting a
dynamic audience experience within the premises.
- Collective
impact: A shared vision and collective impact approach can increase
credibility, leverage funding, and demonstrate the impact of both the festival
and Toitoi.
4.7.2 Aligning the
Hawke’s Bay Arts Festival with Toitoi can also enhance the venue's
benefits for the community, making Hastings a dynamic and culturally vibrant
destination. The Festival further enriches our local community and can enhance
the perceived quality of life. A new focus on visitor attraction could
also support sustained growth and event development.
4.7.3 A review of the
Festival recommended a range of changes, the most significant being the move to
a Biennial Festival, with the key benefits being:
- High-quality
programs: More time for planning allows for better curation, attracting
notable artists and ensuring a well-thought-out theme or concept.
- Resource
allocation: Biennial scheduling allows better allocation of financial,
human, and logistical resources, leading to a more sustainable event.
- Economic
impact: A biennial festival can create a more significant economic boost
during the festival period, benefiting local businesses more intensely.
- Inclusivity
and Sustainability: Greater involvement of local community groups and
sustainable practices can be planned and implemented.
4.7.4 As a regional example
the Dunedin Arts Festival, a biennial event, showcases the potential of such
festivals in small cities. It attracts national and international shows,
benefits from a diverse funding base, and supports local economic growth by
hiring local contractors and promoting local businesses. Dunedin City Council
has contributed around $60,000 per annum over the last four years (down to
$56,000 in 2023) under their Premier Events fund. This represents approx. 13
per cent of festival revenue.
4.8 Arts Inc.
Heretaunga Proposal – The Hawke’s Bay Arts Festival
4.8.1 AIH
provided its business case (Attachment 3) for the continued funding of
$120,000 per annum for a biennial Hawke’s Bay Arts Festival, as required
by Resolution E from Council Agenda Item 7, from the Council Meeting held on 23
May 2024.
4.8.2 Councillor agenda
discussion on 23 May 2024, reflected concerns about the 3-year funding quantum
commitment of $360,000, the associated risks of fiscal sustainability of AIH
and the quantity/quality of Festival events to be delivered. This was based on
a period of change which includes the move from annual to the biannual event,
compounding economic impacts (COVID-19, Cyclone Gabrielle, inflation), and a
change in management. AIH’s proposal includes information to address
these concerns and provide Council with confidence for continued investment.
4.8.3 While AIH has
requested the continuation of the current funding level of $120,000 per annum,
Resolution E states that a future Council decision may amend the $120,000
funding allocation.
4.8.4 Council’s
investment of $120,000 per annum in the festival represents less than 25 per
cent of the total cost of the event. The core funding from Council enables AIH
to leverage sponsorship and grants (along with ticket sales and concessions
revenue) to cover the full costs.
4.8.5 Council is a core
funder of AIH who relies on the total Council funding of $344,000 to provide a
range of activities benefiting community wellbeing. A reduction in the
total funding package may impact on other outcomes funded through Council
grants. AIH’s business plan (Attachment 2) provides an overview of its
full revenue model.
4.8.6 Due to Councils
three-year Long-Term Plan (LTP) cycle with the biennial festival cycle, the
multi-year grant will deliver one festival in this LTP (with smaller
activations in the two off-years), and, pending continued funding, two
festivals (with smaller activations in the one year between).
4.8.7 The funding
agreement term could be amended to align with the festival cycle (2-year or
4-year term). This would allow contract management to align with post-event
reviews. However, the negative outcome is that future funding decisions would
be out of step with the broader event funding allocation decisions, which feeds
into the LTP budget cycle.
4.8.8 Risks relating to
non-performance can be managed through the Contract milestones (subject to
adherence to Contract Dispute Resolution processes). Council could cancel the Contract
for non-achievement of milestones, thus mitigating any future funding risks.
4.8.9 Given the context
of Council’s fiscal position, the change to a biennial festival, an
initial 2-year term would enable the Festival to run one full cycle, at which
point both parties can review outcomes and learnings, refining any future
funding agreement to reflect any learnings. Subsequent terms can then align
with LTP cycles (e.g. a 4-year agreement starting 2026/2027 will realign with
LTP going forward).
4.9 Alternatives opportunities
for budget allocation
4.9.1 As an alternative to funding an arts
festival, the set-aside funds may be fully or partially reallocated across one
or more investment areas, aligned to the Events Strategy and/or other Council
outcomes set out in the LTP. Alternatively, they may be re-absorbed as budget
savings. Examples include but are not limited to:
· Funding
for significant events of strategic value (visitor attraction, economic
activity, community wellbeing).
- Regional
events fund, for general event attraction across a range of venues.
- Attracting
large-scale events to Tōmoana Showgrounds (e.g. music concerts, festivals,
expos).
- Go
to the market for event proposals (with the option to weight for desired
benefits, which may include social and cultural well-being and/or economic
outcomes).
· Resume
Contestable Community Events Fund
- Re-establishment
of Contestable Community Events Fund (closed in 2023 due to funding
restrictions)
· Increase
investment in urban centre vibrancy.
- Increase
city centre activations fund – events in Hastings, Havelock North and
Flaxmere to support vibrancy and economic activity throughout the year.
- Increase
vibrancy fund – increase funds for installation art and projection art.
- Activation
budget for Council-owned or affiliated venues within the city centre
(Angle’s Gym, Waiaroha as examples).
· Reinvest
in Toitoi programming and activation.
- Increase
programming budget.
- Fund
more free community arts activations.
· Asset
investment
- Permanent
stage for Tōmoana Showgrounds (supporting future event attraction, hireage
of the venue and associated benefits)
- Replacement
of temporary stage used for small events (at end of life – no funding to
replace)
· Budget
savings
- The
events budget is reduced by $120,000 as an operational saving. As the Council
is borrowing for operational costs, this reduction in spending would align with
the Financial Strategy.
5.0 Options –
Ngā Kōwhiringa
Option One - Recommended Option - Te Kōwhiringa
Tuatahi – Te Kōwhiringa Tūtohunga
5.1 That
Council approve the AIH Business Plan for the Hawke’s Bay Arts Festival
and releases Council-approved funding at the reduced amount of $60,000 per
annum for two years ($120,000 across 2024 to 2026). A Contract for Service will
be enacted to satisfy the requirements of Section 17A of the Local Government
Act 2002.
Advantages
· Provides
annual funding in support of the Hawke’s Bay Arts Festival.
· Enables
AIH to unlock other external funding critical to achieve revenue targets.
· Opportunity
to realign funding level following the re-opening of Toitoi.
· Provides
Council with options relating to the balance of funds as per 4.9.1, including
budget savings or driving alternative outcomes through reinvestment.
· Given
the scale and frequency of the AIH event proposal, $60,000 per annum is a more
appropriate level of funding, providing AIH with critical seed funding while
increasing accountability on AIH to secure more external funding or right-size
the event.
· Two-year
initial contract for first ‘cycle’ enables refinement of any future
funding agreement based on event/contract KPI review.
Disadvantages
· The
business plan presented by AIH may result in a diminished offering or not
be delivered at all due to the reduction in funding, resulting in a reduction
in benefit.
· The
reduction in funding may impact wider AIH activities beyond the festival (and
thus impact outcomes sought through the other funding agreements between
Council and AIH).
· Potential
reduction in community outcomes relating to social and cultural wellbeing,
either due to reduced Festival offering/AIH activities and/or reduced events
investment.
Option Two – Alternative -
Te Kōwhiringa Tuarua – Te Āhuatanga o nāianei
5.2 That
Council approve the AIH Business Plan for the Hawke’s Bay Arts Festival
and releases Council-approved funding of $120,000 per annum for three years
(2024 to 2027). A Contract for Service will be enacted to satisfy the
requirements of Section 17A of the Local Government Act 2002.
Advantages
· Provides
annual funding in support of the Hawke’s Bay Arts Festival.
· Aligns
funding with AIH budgets provided in the business plan.
Disadvantages
· Council
will not have funding for the alternative options set out under 4.9.1,
including budget savings.
Option Three
– Alternative - Te Kōwhiringa Tuarua – Te Āhuatanga o
nāianei
5.3 That
Council does not approve the AIH Business Plan detailing the events programme
and expected outcomes of the Hawke’s Bay Arts Festival, and declines the
request for funding.
Advantages
· Provides
Council with options relating to the balance of funds as per 4.9.1, including
budget savings or driving alternative outcomes through reinvestment.
Disadvantages
· No
Hawke’s Bay Arts Festival in 2025.
· Loss
of funding may have a detrimental impact on wider outcomes delivered by Arts
Inc. (including outcomes funded under separate agreements).
· Potential
reduction in community outcomes relating to social and cultural wellbeing.
Attachments:
|
1⇨
|
Funding - Arts Inc. Heretaunga 23 May 2024 Council Report
|
CG-17-1-01068
|
Vol 1
|
|
2
|
Arts Inc. Heretaunga Business Plan(Attachment 2)
Confidential in accordance
with Section 7 (2) (h) of the Local Government Official Information and
Meetings Act 1987
|
CG-17-1-01069
|
Vol1
|
|
3
|
26724 HBAF Proposal (updated attachment 3)
Confidential in accordance
with Section 7 (2) (h) of the Local Government Official Information and
Meetings Act 1987
|
CG-17-1-01083
|
PX Attachments
|
|
4⇨
|
TAFT letter - HBAF
|
CG-17-1-01071
|
Vol 1
|
|
5⇨
|
Letter of Support HBAF Cellar 495
|
CG-17-1-01072
|
Vol 1
|
|
6⇨
|
DAF Letter Of support HBAF
|
CG-17-1-01073
|
Vol 1
|
|
7⇨
|
Support of funding for HBAF(2)
|
CG-17-1-01084
|
Vol 1
|
|
8⇨
|
Letter of support - Richard Brimer (AIH)
|
CG-17-1-01089
|
Vol 1
|
|
9⇨
|
Letter of supprt for AIH to HDC Small halls
|
CG-17-1-01118
|
Vol 1
|
