Agenda of Hutt City Council

HuttCity_TeAwaKairangi_BLACK_AGENDA_COVER

25 June 2018

Order Paper for Council meeting to be held in the

Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt,

on:

Thursday 28 June 2018 commencing at 6.00pm

Membership

Mayor W R Wallace (Chair)
Deputy Mayor D Bassett
Cr G Barratt	Cr C Barry
Cr L Bridson	Cr J Briggs
Cr M Cousins	Cr S Edwards
Cr T Lewis	Cr M Lulich
Cr G McDonald	Cr C Milne
Cr L Sutton

For the dates and times of Council Meetings please visit www.huttcity.govt.nz

COUNCIL
Membership:	13
Meeting Cycle:	Council meets on a six weekly basis (Extraordinary Meetings can be called following a resolution of Council; or on the requisition of the Chair or one third of the total membership of Council)

Power to (being a power that is not capable of being delegated)[1]:

• Make a rate.

• Make bylaws.

• Borrow money other than in accordance with the Long Term Plan (LTP).

• Purchase or dispose of assets other than in accordance with the LTP.

• Purchase or dispose of Council land and property other than in accordance with the LTP.

• Adopt the LTP, Annual Plan and Annual Report.

• Adopt policies required to be adopted and consulted on under the Act in association with the LTP or developed for the purpose of the Local Governance Statement.

• Appoint the Chief Executive.

• Exercise any powers and duties conferred or imposed on the local authority by the Public Works Act 1981 or the Resource Management Act 1991 that are unable to be delegated.

• Undertake all other actions which are by law not capable of being delegated.

• The power to adopt a Remuneration and Employment Policy.

Decide on:

Policy issues

• Adoption of all policy required by legislation.

• Adoption of policies with a city-wide or strategic focus.

District Plan

• Promotion of Plan Changes and Variations recommended by the District Plan Committee prior to public notification.

• The withdrawal of Plan Changes in accordance with clause 8D, Part 1, Schedule 1 of the Resource Management Act 1991.

• Approval, to make operative, of District Plan and Plan Changes (in accordance with clause 17, Part 1, Schedule 1 of the Resource Management Act 1991).

Representation, electoral and governance matters

• The method of voting for the Triennial elections.

• Representation reviews.

• Council’s Code of Conduct and Local Governance Statement.

• Elected Members Remuneration.

• The outcome of any extraordinary vacancies on Council.

• Any other matters for which a local authority decision is required under the Local Electoral Act 2001.

• All matters identified in these Terms of Reference as delegated to Council Committees (or otherwise delegated by the Council) and oversee those delegations.

• Council‘s delegations to officers and community boards.

Delegations and employment of the Chief Executive

The review and negotiation of the contract, performance agreement and remuneration of the Chief Executive.

Meetings and committees

• Standing Orders for Council and its committees.

• Council’s annual meeting schedule.

Operational matters

• The establishment and disposal of any Council Controlled Organisation or Council Controlled Trading Organisation and approval of annual Statements of Corporate Intent on the recommendation of the Finance and Performance Committee.

• Civil Defence Emergency Management Group matters requiring Council’s input.

• Road closing and road stopping matters.

• All other matters for which final authority is not delegated.

Appoint:

• The non-elected members of the Standing Committees (including extraordinary vacancies of non-elected representatives).

• The Directors of Council Controlled Organisations and Council Controlled Trading Organisations.

• Council’s nominee on any Trust.

• Council representatives on any outside organisations (where applicable and time permits, recommendations for the appointment may be sought from the appropriate standing committee and/or outside organisations).

• The Chief Executive of Hutt City Council.

• Council’s Electoral Officer, Principal Rural Fire Officer and any other appointments required by statute.

HUTT CITY COUNCIL

Ordinary meeting to be held in the Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt on

Thursday 28 June 2018 commencing at 6.00pm.

ORDER PAPER

Public Business

1. APOLOGIES

Cr Briggs.

2. PUBLIC COMMENT

Generally up to 30 minutes is set aside for public comment (three minutes per speaker on items appearing on the agenda). Speakers may be asked questions on the matters they raise.

3. CONFLICT OF INTEREST DECLARATIONS

4. Adoption of 2018-2028 Long Term Plan (18/1029)

Report No. HCC2018/3/199 by the Corporate Planner 8

5. Setting Rates for the Year Ending 30 June 2019 (18/1030)

Report No. HCC2018/3/188 by the Team Leader Rates and Debt 355

6. Council's Submission on the Zero Carbon Act (18/1092)

Report No. HCC2018/3/68 by the Divisional Manager, Democratic Services 375

7. LOCAL GOVERNMENT NEW ZEALAND - REMIT PROPOSALS (18/1035)

Report No. HCC2018/3/66 by the Divisional Manager, Democratic Services 378

8. QUESTIONS

With reference to section 32 of Standing Orders, before putting a question a member shall endeavour to obtain the information. Questions shall be concise and in writing and handed to the Chair prior to the commencement of the meeting.

Kathryn Stannard

Divisional Manager, Democratic Services

12 28 June 2018

Hutt City Council

11 June 2018

File: (18/1029)

Report no: HCC2018/3/199

Adoption of 2018-2028 Long Term Plan

Purpose of Report

1. The purpose of this report is to seek adoption of the 2018-2028 Long Term Plan.

Recommendations

It is recommended that Council:

(i) notes the Management Report from Audit New Zealand (Appendix 1) outlining findings from the audit of the Consultation Document for the 2018-2028 Long Term Plan;

(ii) notes that all required changes resulting from decisions made at the Community Plan Committee meeting held on 6 June 2018 have been made to the Long Term Plan;

(iii) notes that all submitters have received a letter informing them of the significant decisions made following Committee on 6 June, and those with specific queries will receive a follow up letter in the next few weeks;

(iv) agrees to the proposed approach to begin strategic planning for the 2019-20 Annual Plan in October 2018;

(v) resolves that it is financially prudent to have an unbalanced budget in 2018-19 and 2019-20 caused by the accounting treatment of grants paid to the Community Facilities Trust (CFT) for capital works carried out by the CFT in these years;

(vi) approves the 2018-2028 Long Term Plan attached as Appendix 2;

(vii) receives Audit New Zealand’s opinion on the 2018-2028 Long Term Plan; and

(viii) adopts the 2018-2028 Long Term Plan.

Background

2. Under the Local Government Act 2002 (LGA) “A long term plan must be adopted before the commencement of the first year to which it relates, and continues in force until the close of the third consecutive year to which it relates” (by 1 July 2018 for the 2018-2028 Long Term Plan).

3. On 6 June 2018 the Community Plan Committee met to discuss the feedback received from the 2018-2028 Long Term Plan (‘the Plan’) consultation and agree final changes to the Plan. At this meeting the Committee recommended the approval of the non-financial information under pinning the Plan, as well as a number of supporting policies and strategies including:

a. 2018-19 fees and charges

b. 2018 Financial Strategy

c. 2018 Revenue and Financing Policy

d. 2018 Long Term Plan assumptions

e. 2018-2048 Infrastructure Strategy

f. Significance and Engagement Policy

g. Development Contributions Policy.

Discussion

Audit New Zealand report on the audit of Hutt City Council’s 2018-2028 Long Term Plan Consultation Document

4. The report from Audit New Zealand, attached as Appendix 1, outlines the findings from the audit of the Consultation Document for the 2018-2027 Long Term Plan.

5. The audit concluded that the Consultation Document was fit for purpose and would enable effective consultation with the local community on the issues affecting the city.

6. The report included recommendations for Council to address as part of the development of the final Long Term Plan. These recommendations have been addressed as part of the Long Term Plan process and where possible were included in the supporting information that was approved by the Council on 6 June 2018. Some of the matters raised, including the process to develop the Consultation Document, are ongoing and for future processes.

Adoption of the 2018-2028 Long Term Plan

7. Following Council’s final decisions on 6 June 2018 the necessary changes were incorporated into the Plan.

8. Through the audit process Audit New Zealand requested:

a. some minor editing changes to improve consistency

b. additional explanatory detail to some infrastructure measures

c. text relating to UPL’s current subsidiaries to be updated to reflect recent name changes.

9. A summary diagram was also added to the infrastructure strategy to help readers understand the structure of the Strategy and navigate through it more easily. No other material changes have been made since the version approved on 6 June 2018.

10. The text of the Plan with all financial information and supporting documents is attached in Appendix 2. A draft designed version of the Plan will be made available at the meeting.

11. Audit New Zealand will issue their opinion of the 2018-2028 Long Term Plan once the Plan is approved by Council prior to adoption.

12. No further alterations can be made to the text of the Plan at this point.

13. Following this meeting final checks will be completed on the designed version of the Plan prior to its publication. Under the LGA “A local authority must, within 1 month after the adoption of its long-term plan, make its long-term plan publicly available; and send copies of that plan to—the Secretary; and the Auditor-General; and the Parliamentary Library.”

Balanced budget requirement

14. Part 6 section 100 (1) of the LGA, requires “a local authority ensure that each year’s projected operating revenues are set at a level sufficient to meet that year’s projected operating expenses”. Part 6 section 100 (2) of the LGA says “despite subsection (1), a local authority may set projected operating revenues at a different level from that required by that subsection if the local authority resolves that it is financially prudent to do so”.

15. The Plan shows an operating deficit in 2018-19 and 2019-20. The deficits are due to grants paid to the Community Facilities Trust (CFT) that are required are required for accounting purposes to be treated as operating expenditure but are for capital works carried out by the CFT. If the capital works were to be completed by Council, the associated amounts would be treated as capital expenditure and a balanced budget would be achieved in all 10 years of the Plan.

2019-20 Annual Plan

16. Following completion of the Plan we are undertaking a review of the process with internal teams, suppliers and Audit New Zealand. Councillors will also be asked to provide feedback on the process through the annual elected members survey. The purpose of the review is to improve future planning processes, beginning with the 2019-20 Annual Plan.

17. A reoccurring theme emerging from the review, is the need to start the process earlier with Councillor strategic planning workshops beginning in October, rather than in January. The purpose of these workshops would be for elected members to discuss and agree any significant issues and choices facing the city, and the consequences of these choices. Once the significant issues and choices were identified drafting of the Consultation Document could begin in December.

18. This approach is supported by Audit New Zealand and the Senior Leadership Team and is consistent with other Councils.

19. As 2019 is an Annual Plan year, there is no legislative requirement to consult with the public if there are no significant changes from the Long Term Plan. An option Councillors may wish to consider, if their view is that there have not been any significant changes, is not to produce a Consultation Document in 2019-20.

20. An alternative may be to engage with the community more widely on governance and the planning/budget process. This would serve the dual purposes of:

a. Improving understanding in the community of the trade-offs Council has to consider when developing priorities

b. Enabling any requests for funding to come through earlier in the process so that they are worked through the committees at the start of planning.

21. An independent research company, Key Research, survey our residents on our behalf quarterly. The survey asks a wide range of questions including residents understanding of how Council makes decisions, whether decisions are made in the best interest of the community and whether residents feel consulted with. The results from this survey suggest there is limited understanding of the decision-making and consultation process for the Long Term Plan and Annual Plan. A wider community engagement focused on governance and the civic-decision making process may help to address this.

22. A summary of the resident satisfaction survey results will be shared with you on a six-monthly basis.

Consultation

23. Public consultation for the 2018-2028 Long Term Plan ran from 3 April to 3 May 2018. The results of the consultation were provided to the Community Plan Committee to assist with deliberations on 6 June 2018.

24. A letter was sent out to all submitters advising of significant decisions on 11 June 2018. Tailored follow up letters will be sent to submitters who had a specific query or request over the next few weeks.

Legal Considerations

25. The Long Term Plan has been prepared to meet the requirements of the Local Government Act 2002

Financial Considerations

26. Financial considerations are outlined in the 2018-2028 Long Term Plan.

Other Considerations

27. In making this recommendation, officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002. Officers believe that this recommendation falls within the purpose of the local government in that opportunity has been provided for members of the public to comment on the manner in which Council proposes to meet the current and future needs of the community. It has done this in a way that is cost-effective as the Consultation Document and supporting information was made accessible for residents both online and by hard copy. Computers were made available at all libraries, community hubs and the main administration building to reduce barriers for online participation. There was extensive advertising of the consultation to encourage public participation.

Appendices

No.	Title	Page
1 ⇩	Audit NZ LTP CD Management Report 140618	13
2 ⇩	2018-2028 LTP v3 250618	26

Author: Josie Askin

Corporate Planner

Author: Philip Benseman

Budgeting and Reporting Manager

Reviewed By: Wendy Moore

Divisional Manager, Strategy and Planning

Approved By: Kim Kelly

General Manager, City Transformation

Attachment 1

Audit NZ LTP CD Management Report 140618

Attachment 2

2018-2028 LTP v3 250618

360 28 June 2018

Hutt City Council

28 June 2018

File: (18/1030)

Report no: HCC2018/3/188

Setting Rates for the Year Ending 30 June 2019

Purpose of Report

1. This report requests that Council set the rates for the year ending 30 June 2019.

Recommendations

It is recommended that Council resolves to set rates and add penalties to unpaid rates during the 2018/19 rating year by passing the resolution set out in Attachment 1 to this report.

Background

2. Subject to Council first adopting the 2018-2028 Long Term Plan at its meeting on 28 June 2018, Council can move to set the rates for the 2018/19 rating year in accordance with the relevant provisions of the Funding Impact Statement Including Rates for 2018/19, as included as Attachment 2 to this report.

Discussion

3. Council has a relatively simple rating system, that mainly includes a general rate (based on the capital value of a property), and targeted rates for water supply, wastewater, recycling and the Jackson Street Programme, (all based on a fixed charge per property), known as a rating unit. Further details are provided in Appendix 2 to this report.

4. Council’s Financial Strategy limits the maximum increase in the rates revenue to actual LGCI after allowing for estimated growth of 1%. The 2018/19 budget includes a total rates revenue increase of 2.5%, consisting of a 1.5% rates increase for existing ratepayers (based on actual LGCI for the year ending 30 June 2017), and a further 1% rates revenue increase expected to be received from growth, as a result of new builds and property investment.

5. At the time of writing this report, actual growth in the city’s rating base since 1 July 2017 was 0.92%. Council will therefore set a total rates revenue of $124.8M (including GST) for 2018/19, being an increase of 2.42% from 2017/18 (1.5% rates increase for existing ratepayers and a further 0.92% rates increase from growth). When compared to budget, the lower growth rate and rates requirement may potentially result in a shortfall of $82,000 against the 2018/19 budget. There will be some additional growth in the city’s rateable property that will be realised between setting the rates and assessing and invoicing the first rates instalment in July 2018, backdated to 30 June 2018, but not to fully make up the projected shortfall.

6. Based on final 2018-2028 Long Term Plan budgets and a growth rate of 0.92%, the changes in average property rates for 2018/19 against 2017/18 levels, including GST but excluding Greater Wellington Regional Council (GWRC) rates, are tabled below:

7. For comparison, the value of an average residential property will be held constant at $472,130. The table below compares the actual 2018/19 rates increase for an average residential property compared to 2018/19 rates increase estimated during consultation of the 2018-28 Long Term Plan.

	Final 2018-28 Long Term Plan	Draft 2018-28 Long Term Plan
Average Residential Property Rates Increase	3.12%	3.28%
Made up as follows:
Increase due to 2016/17 Actual LGCI	1.5%	1.5%
Increase due to change in the General Rate Differential	1.36%	0.80%
Additional Increase in Targeted Rates	0.26%	-
Additional Increase from low 2017/18 Growth Rate ( 0.32% at the time)	-	0.98%
Total Increase	3.12%	3.28%

8. At its meeting on 6 June 2018, the Community Plan Committee considered the Proposed Budget Changes for the 2018-2028 Long Term Plan (Report CPC2018/3/154). The proposed changes were approved by Council together with several additional public submission funding requests.

9. The main impacts of these budget changes to the total rates revenue requirement for 2018/19 was the following:

· an increase to the overall water supply targeted rate of 4.8%;

· an increase to the wastewater targeted rate of 7.7%; and

· reducing the “business central property sector” general rate differential from 3.0 to 2.86 in 2018/19 has resulted in shifting a higher rates burden on the residential property sector than planned, mainly due to lower growth.

These will be discussed separately below.

Water Supply Targeted Rate

10. The water supply targeted rate is a fixed charge applied to each rating unit or separately used or inhabited part of a rating unit. Any property, regardless of its rateable value, pays the same fixed rates before the general rate in the dollar is applied to the property’s rateable value.

11. The main reasons for increasing the water supply targeted rate relates to an increase in the GWRC Bulk Water Levy to fund GWRC’s capital programme per its 2018-2028 Long Term Plan which has an increased focus (and investment) on water quality and resilience, plus funding of costs spent by GWRC in 2017/18 on the UV/chlorination project.

Wastewater Targeted Rate

12. The wastewater targeted rate is a fixed charge applied to a rating unit’s water closet or urinal. As above, any property, regardless of its rateable value, pays fixed rates before the general rate in the dollar is applied to the property’s rateable value.

13. The main reason for increasing the wastewater targeted rate is to fully fund increased wastewater collection, treatment and disposal costs.

2018/19 Change to the General Rate Differential

14. The general rate is a rate in the dollar levied against the rateable value of each property. To continue addressing affordability, the Community Plan Committee considered the Draft 2018 Revenue and Financing Policy (Report CPC2018/2/66) on 28 March 2018 and resolved to maintain the step two adjustment, which shifts the general rates burden from business to residential sectors gradually each year such that the business differential is 2.29 times higher than the residential sector in 2022/23.

15. The general rate differential for the “business central property sector” is currently 3.0 times greater than the residential property sector and is being reduced to 2.86 times greater in 2018/19. This results in a higher rates burden on the residential property sector as a result, which is further exacerbated by lower growth than expected.

16. For 2018/19, the total general rates revenue requirement is $85.85M inclusive of GST (2017/18: $85.11M). The total increase in the general rate revenue requirement of $ $0.74M in 2018/19 is due to inflation (LGCI) and Council’s approval to increase rates remissions in 2018/19 for community, sporting and other organisations.

17. The charts below show the total general rate revenue, broken down by sectors, for both 2017/18 and 2018/19. As can be seen, residential general rates make up 62% of total general rates revenue in 2018/19, compared to 61% in 2017/18.

18. For convenience, 2018/19 rates increases ( including GST but excluding GWRC rates) for average residential properties in each suburb are tabled below:

Consultation

19. Public consultation on the Council’s rating system was included in the 2018-2028 Long Term Plan Consultation Document. There are no additional consultation requirements arising from this report.

Legal Considerations

20. The rates are to be set in accordance with the Local Government (Rating) Act 2002, the requirements of which include the following:

a. publishing indicative rates for the year as part of the consultation process prior to setting the rates;

b. after setting the rates, sending each ratepayer:

i. an assessment showing full details of rates on each rating unit, including how each rate is calculated and what activities are funded by the rate.

ii. a brief description of the Council’s rates remission and postponement policies.

c. sending a copy of the resolution setting the rates to the Secretary of Local Government within 20 working days of it being passed.

21. As in previous years, the rating resolution (Attachment 1 to this report), includes authority to charge late payment penalties of 10 per cent on rates instalments not paid by the due date. In addition it also provides for additional 10 per cent penalties to be charged each six months on rates remaining outstanding from previous years.

Financial Considerations

22. There are no financial considerations in addition to those already outlined in this report.

Other Considerations

23. In making this recommendation, Officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002. Officers believe that this recommendation falls within the purpose of the local government in that it provides both transparency to ratepayers and full legal grounds for the Council to assess and levy rates for 2018/19 against all rateable properties in Hutt City.

Appendices

No.	Title	Page
1 ⇩	Rates Resolution 2018/19	361
2 ⇩	Funding Impact Statement Including Rates for 2018/19	363

Author: Helen Stringer

Team Leader Rates and Debt

Author: Mark de Haast

Chief Financial Officer

Reviewed By: Brent Kibblewhite

General Manager Corporate Services

Approved By: Tony Stallinger

Chief Executive

Attachment 1

Rates Resolution 2018/19

SETTING THE RATES FOR THE YEAR ENDED 30 JUNE 2019

In accordance with the relevant provisions of the 2018-28 Long Term Plan and the Funding Impact Statement including Rates, the Council hereby resolves, pursuant to Section 23 of the Local Government (Rating) Act 2002, to set and assess the following rates for the year commencing 1 July 2018 and ending 30 June 2019.

(a) A Targeted Rate (Water Supply Rate) set and assessed under sections 16 and 19 of the Local Government (Rating) Act 2002, of $413.00, on every separately used or inhabited portion of a rating unit in the district to which water is supplied, with a charge of $206.50 on every separately used or inhabited portion of a rating unit to which water can be, but is not supplied, (being a property situated within 100 metres from any part of the water works).

(b) A Targeted Rate (Wastewater Rate) set and assessed under sections 16 and 17 of the Local Government (Rating) Act 2002, of $468.50, on the first water closet or urinal connected to the wastewater system from each rating unit, and a charge of $234.25 for the second and each subsequent water closet or urinal from each rating unit so connected, provided that each household is charged for no more than one water closet.

(c) A Targeted Rate (Recycling Charge) set and assessed under sections 16 and 17 of the Local Government (Rating) Act 2002 of $40.00 on every separately used or inhabited portion of a rating unit in the Residential differential category to which the recycling collection service is provided, or is available to be provided.

(d) A Targeted Rate (Jackson Street Programme Rate) set and assessed under sections 16 and 17 of the Local Government (Rating) Act 2002 of 0.00080320 cents in the dollar on the capital value of every rating unit in a Business differential category which is situated within that area of the former Petone Borough with a frontage on Jackson Street between the Hutt Road and Cuba Street.

(e) A General Rate set and assessed under sections 13 and 14 of the Local Government (Rating) Act 2002 on every rating unit in the district, differentially on those categories of rateable land as defined in the Hutt City Council Funding Impact Statement including Rates as follows:

The General rates in the dollar calculated on the capital value of each rating unit shall be:

The above rates for the financial year ending 30 June 2019 are all inclusive of GST at the prevailing rate and are payable by six instalments by the following due dates:

Instalment Number	Due Date
One	20 August 2018
Two	20 October 2018
Three	20 December 2018
Four	20 February 2019
Five	20 April 2019
Six	20 June 2019

Where a due date falls on a weekend or public holiday the next business day rule applies.

AUTHORISING PENALTY CHARGES

AND pursuant to Sections 57 and 58 of the Local Government (Rating) Act 2002, the Council further resolves for the period from 1 July 2018 to 30 June 2019 to:

(a) Authorise a penalty charge of 10% to be added to the amount of rates levied after 1 July 2018 that remain unpaid for each instalment after the due date. The dates upon which the 10% penalty charge will be added to any rates remaining unpaid for each instalment will be the day after the date each instalment is due;

(b) Authorise a further penalty charge of 10% to be added to rates levied prior to 1 July 2018 and which remain unpaid after the 20 August 2018 instalment has been processed. This penalty will be added to the amount of unpaid rates the day after the 20 August 2018 instalment has been processed;

(c) Authorise a further penalty charge of 10% to be added to rates levied prior to 1 July 2018 and which remain unpaid after the 20 February 2019 instalment has been processed. This penalty will be added to the amount of unpaid rates the day after the 20 February 2019 instalment has been processed.

Where a due date falls on a weekend or public holiday the next business day rule applies.

Attachment 2

Funding Impact Statement Including Rates for 2018/19

FUNDING IMPACT STATEMENT INCLUDING RATES FOR –2018 - 2019

This section includes full details of how rates are calculated. This statement should be read in conjunction with Council’s Revenue and Financing Policy, which sets out Council’s policies in respect of each source of funding of operating expenses.

SUMMARY OF FUNDING MECHANISMS AND INDICATION OF LEVEL OF FUNDS TO BE PRODUCED BY EACH MECHANISM

The Whole of Council Funding Impact Statement sets out the sources of funding to be used for 2018 - 2028, the amount of funds expected to be produced from each source, and how the funds are to be applied. Details of user charges and other funding sources, and the proportion applicable to each activity, are included in the Council’s Revenue and Financing Policy.

RATES FOR YEAR

For the –2018 - 2019 year, and for subsequent years, it is intended that Council will set the following rates:

a) Water Supply Rate

A separate targeted rate will be set to meet 100% of the costs of water supply and reticulation in the city. Lump sums will not be invited in respect of this rate. Council has set the targeted rate for water supply on the basis of the following factors:

· a charge per separately used or inhabited part of a rating unit which is connected to the water reticulation system

· a charge of 50% of the above charge per separately used or inhabited part of a rating unit that is not connected to, but is able to be connected to, the water reticulation system.

Provided that:

· rating units situated within 100 metres from any part of the water reticulation network are considered to be able to be connected (i.e. serviceable)

· rating units that are not connected to the system, and that are not able to be connected, will not be liable for this rate

· the owner of a rating unit with more than one separately used or inhabited part may opt to install a water meter to measure the total water consumed. In such a case only one charge will be made for the entire rating unit, but the owner will be liable to pay for water consumed as measured by the meter.

The charges for the 2018-2019 rating year are as follows:

CATEGORY	CHARGE
Connected	$413.00 per part
Serviceable but not Connected	$206.50 per part

b) Wastewater Rate

A separate targeted rate will be set to meet 100% of the costs of wastewater collection, treatment and disposal within the city. Lump sums will not be invited in respect of this rate.

Council proposes to set the targeted rate for the wastewater function on the basis of the following factors:

· for Commercial rating units a charge for the first water closet (WC) or urinal connected to the wastewater system from each rating unit; and

· an additional charge of 50% of the above charge for the second and each subsequent WC or urinal connected to the wastewater system from each rating unit. Provided that:

· each residential household is charged for no more than one WC, regardless of the actual number

· no charge is made to any rating unit not connected to the wastewater system

· in the case of urinals each 900mm or part thereof will be treated as being equivalent to one WC. The charges for the –2018 - 2019 rating year are as follows:

CATEGORY

CHARGE PER $ OF CAPITAL VALUE

Rating units in any business category having frontage to Jackson Street, Petone, between Hutt Road and Cuba Street

0.00080320 $ of

Capital Value

e) General Rate

A general rate will be set:

· to meet the costs of Council activities, other than those detailed above

· based on the Capital Value of each rating unit in the city

· on a differential basis, based on the use to which the land is put.

UNIFORM ANNUAL GENERAL CHARGE (UAGC)

Council does not propose to set a UAGC for –2018 - 2019, but in future years if a UAGC is set this will be calculated as one fixed amount per Separately Used or Inhabited Part (SUIP) of a rating unit.

DEFINITION OF SEPARATELY USED OR INHABITED PART (SUIP)

For the purposes of the UAGC or any targeted rate set as a fixed amount per SUIP of a rating unit, a SUIP is defined as:

· any part of the rating unit separately used or inhabited by the owner or any other person who has the right to use or inhabit that part by virtue of a tenancy, lease, licence or other agreement

· at a minimum, the land or premises intended to form the separately used or inhabited part of the rating unit must be capable of actual habitation, or actual use by persons for purposes of conducting a business

For the avoidance of doubt, a rating unit that has only one use (i.e. it does not have separate parts or is vacant land) is treated as being one SUIP.

DIFFERENTIAL RATING DETAILS

Each rating unit is allocated to a differential rating category (based on land use) for the purpose of calculating the general rate, or any specified targeted rate based on Capital Value.

Set out below are the definitions used to allocate rating units to categories, together with details of the differential rating relationships between each category of rating unit for the purposes of setting and assessing the general rate. The relationships are calculated to produce, as near as is practicable, the correct proportion of general rate revenue from each group, as is indicated by Council’s Revenue and Financing Policy.

For the –2018-2019 rating year, only the general rate has been set using these differential categories and relationships.

DEFINITION OF RATING CATEGORIES

CATEGORY	DESCRIPTION
Residential (RE)	All rating units in the city which are: · used primarily for residential purposes; · used or set aside for reserve or recreational purposes (other than East Harbour Regional Park), excluding properties categorised as rural.
Rural (RU)	All rating units in the city which are: · used primarily for any purpose other than residential, commercial, industrial, recreational or reserve; · used primarily for residential purposes, having an area in excess of 3,000 m2, but not connected to either water or sewerage reticulation; · East Harbour Regional Park.
Business Accommodation (BA)	All rating units in any part of the city which are used primarily for commercial accommodation.
Business Central (BC)	All rating units which are located within the Central Area Parking District and which are used primarily or predominantly for commercial and/or industrial purposes, excluding properties categorised as: · Utility Networks; · Business Accommodation.
Business Suburban (BS)	All rating units in any part of the city which are used primarily or predominantly for commercial and/or industrial purposes, excluding properties categorised as: · Community Facilities; · Business Central;

CATEGORY	DESCRIPTION
	· Utility Networks; · Business Accommodation.
Utility Networks (UN)	All rating units which comprise all or part of a utility network.
Community Facilities 1 (CF1)	All land in the city which is: · non-rateable in terms of the Local Government (Rating) Act 2002; · 50% non-rateable in terms of the Local Government (Rating) Act 2002.
Community Facilities 2 (CF2)	All rating units in the city occupied by charitable trusts and not-for-profit organisations which either: · use the land for non-trading purposes for the benefit of the community; · would qualify as land which is 50% non-rateable in accordance with Part 2 of Schedule 1 of the Local Government (Rating) Act 2002 if the organisation did not have a liquor licence, but excluding any rating unit used for residential purposes.
Community Facilities 3 (CF3)	All rating units in the city occupied by not-for-profit community groups or organisations whose primary purpose is to address the needs of adult members for entertainment or social interaction, and which engage in recreational, sporting, welfare or community services as a secondary purpose.

For the purposes of these definitions:

· rating units which have no apparent land use (or where there is doubt as to the relevant use) will be placed in a category which best suits the activity area of the property under the District Plan;

· rating units which have more than one use (or where there is doubt as to the relevant primary use) will be placed in the category with the highest differential factor;

· Central Area Parking District is as defined in the District Plan – City of Lower Hutt. For the avoidance of doubt, “commercial purposes” includes rating units used:

· as a hotel, motel, inn, hostel or boarding house

· primarily as licensed premises

· as a camping ground

· as a convalescent home, nursing home, rest home or hospice operating for profit

· as a fire station

· by a government, quasi-government or local authority agency for administration or operational purposes

· as an establishment similar to any of the kinds referred to above, except to the extent that any such rating unit is non-rateable land in terms of the Local Government (Rating) Act 2002.

A “utility network” includes:

· a gas, petroleum or geothermal energy distribution system

· an electricity distribution system

· a telecommunications or radio communications system

· a wastewater, storm water or water supply reticulation system.

“Commercial accommodation” means the provision of accommodation for more than five persons (with or without any care, medical or other treatment or services) in the course of business, and to that extent includes:

· a hotel, motel, inn, hostel or boarding house

· any licensed premises where the provision of accommodation is the primary use

· a camping ground

· a convalescent home, nursing home, rest home or hospice operating for profit.

Subject to the right of objection set out in section 29 of the Local Government (Rating) Act 2002, it shall be at the sole discretion of Council to determine the use or primary use of any rating unit in the city.

SUMMARY OF REVENUE REQUIRED BY DIFFERENTIAL GROUP

DIFFERENTIAL GROUP

TOTAL RATES BY CATEGORY 2018 -

PROPORTION OF TOTAL RATES

	2019 $000	%
Residential	87,698	70.3%
Rural	766	0.6%
Utility Networks	4,532	3.6%
Business:
Accommodation	854	0.7%
Central	7,251	5.8%
Suburban	22,380	17.9%
Community Facilities:
1	960	0.8%
2	216	0.2%
3	184	0.1%
Total Rates Levied	124,841	100%

Relationships of Differential Categories

The rate in the dollar set and assessed in respect of each specified category of rating units shall vary from the rate in the dollar in respect of any other specified category of property as set out below. Council has amended the differential factors used in 2011 - 2012 and 2012 - 2013 and these were introduced over a 10 year period that commenced in 2012 - 2013. For 2017-18, Council agreed to freeze the differential transition for one year and extend the transition period by a year, to reduce the rates impact on residential ratepayers caused by the significant increase in residential property values following the three yearly revaluation of properties (for rating purposes), in October 2016.

The differential policy was reviewed by Councillors during the preparation of this Long Term Plan. Council decided to continue with the differential transition plan from 1 July 2018 so that from 1 July 2023 the business rate would be no more than 2.29 times (previously 2.3 times), greater than the rate of a residential property of the same value.

The figures below are based on the current year’s rates:

CATEGORY	DIFFERENTIA L FACTOR	TRANSITION OVER 11 YEARS (ORIGINALLY 10 YEARS)										DIFFERENTIAL FACTOR AFTER 11 YEARS
CATEGORY	2011/12	2012/13	2013/14	2014/15	2015/16	2016/17	2017/18	2018/19	2019/20	2020/21	2021/22	2022/23
Residential (RE)	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00
Rural (RU)	0.65	0.67	0.68	0.70	0.71	0.73	0.73	0.74	0.75	0.76	0.77	0.80
Business Accommodati on (BA)	3.00	2.93	2.86	2.79	2.72	2.65	2.65	2.58	2.51	2.44	2.37	2.29
Business Central (BC)	3.70	3.56	3.42	3.28	3.14	3.00	3.00	2.86	2.72	2.58	2.44	2.29
Business Suburban (BS)	3.40	3.29	3.18	3.07	2.96	2.85	2.85	2.74	2.63	2.52	2.41	2.29
Utility Networks (UN)	2.50	2.48	2.46	2.44	2.42	2.40	2.40	2.38	2.36	2.34	2.32	2.29
Community Facilities 1 (CF1)	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00
Community Facilities 2 (CF2)	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50
Community Facilities 3 (CF3)	2.50	2.48	2.46	2.44	2.42	2.40	2.40	2.38	2.36	2.34	2.32	2.29

The differential categories and charges for the –2018 - 2019 rating year are as follows:

CATEGORY	DIFFERENTIAL	CHARGE PER $ OF CAPITAL VALUE
Residential (RES)	1.00	0.30910 cents
Rural (RUR)	0.74	0.22873 cents
Business Accommodation (BUA)	2.58	0.79748 cents
Business Central (BUC)	2.74	0.88403 cents
Business Suburban (BUS)	2.74	0.84694 cents
Utility Networks (UTN)	2.38	0.73566 cents
Community Facilities 1 (CF1)	1.00	0.30910 cents
Community Facilities 2 (CF2)	0.50	0.15455 cents
Community Facilities 3 (CF3)	2.38	0.73566 cents

SUMMARY OF REVENUE REQUIRED FROM RATES

RATE	AMOUNT (INCLUSIVE OF GST) $000	AMOUNT (EXCLUSIVE OF GST) $000
General Rate	85,846	74,649
Targeted Rates:
Water Supply	16,848	14,651
Wastewater	20,452	17,784

Jackson Street	158	137
Recycling	1,538	1,337
Total Rate Revenue	124,842	108,558

Note: Total rate revenue includes rates charged on Council-owned properties.

EXAMPLES OF RATES ON A RANGE OF TYPICAL PROPERTIES

The examples below show how a range of properties are affected by the rates for 2018 - 2019:

		2017/2018 RATES		2018/2019 RATES
PROPERTY CATEGORY	RATEABLE VALUES AS AT 1 JULY 2017 $	AT CURRENT RATES $	RATEABLE VALUES AS AT 1 JULY 2018 $	RATES $	CHANGE AMOUNT $	CHANGE AMOUNT %
Average Residential	472,130	2,308	472,130	2,380	72	3.12
Average Business Central	1,310,628	13,028	1,310,628	12,702	-326	-2.50
Average Business Suburban	1,203,078	11,495	1,203,078	11,305	-190	-1.65
Average Business Accommodation	2,279,028	21,624	2,279,028	21,633	9	0.04
Average Rural (no water services)	643,147	1,431	643,147	1,471	40	2.80

CONTINUED EXAMPLES OF RATES ON A RANGE OF TYPICAL PROPERTIES

	RATEABLE VALUES AS AT 1 JULY 2018 $	RATES $
Community Facilities 1	1,110,000	5,015
Community Facilities 2	1,800,000	5,303
Community Facilities 3	7,325,000	61,796
Utilities	2,370,000	17,435
Residential	200,000	1,539
Residential	400,000	2,157
Residential	600,000	2,776
Residential	800,000	3,394
Residential	1,000,000	4,012

RATES INSTALMENT DETAILS

The amount of the annual rates payable on each rating unit is payable by six equal instalments by the following dates: Instalment No. Due Date

One 20 August 2018

Two 20 October 2018

Three 20 December 2018

Four 20 February 2019

Five 20 April 2019

Six 20 June 2019

Where the annual rates are not able to be set in time for the first instalment, the first instalment will be calculated and charged as one sixth of the previous year’s rates. The remaining five instalments will then be calculated as each being one fifth of the amount of the annual rates, after deducting the amount of instalment one.

PENALTIES ON UNPAID RATES

If the rates instalment amount is not paid by the due date then the following penalty charges will be incurred:

a) after the due date shown for each instalment, a penalty charge of 10% of the amount remaining unpaid for that instalment will be added to the rate account

b) all rates levied in any previous financial year (including any penalty amounts already added for late payment) which remain unpaid after the due date for payment of the first instalment in the current year (20 August), will incur a further penalty charge of 10%

c) all rates levied in any previous financial year (including any penalty amounts already added for late payment) which remain unpaid after the due date for payment of the four instalment in the current year (20 February), will incur a further penalty charge of 10%.

No penalty shall be added to any rate account if:

a) a direct debit authority is in place for payment of the rates by regular weekly, fortnightly or monthly instalments, and payment in full is made by the end of the rating year

b) any other satisfactory arrangement has been reached for payment of the current rates by regular instalments by the end of the rating year.

RATING BASE

Based on the projected increase of 1% in the rating base each year, the following table shows the projected number of rating units in the city as at 30 June:

2018	2019	2020	2021	2022	2023	2024	2025	2026	2027
41,090	41,500	41,707	42,124	42,755	43,396	44,046	44,486	44,930	45,379

376 28 June 2018

Our Reference 18/1092

TO: Mayor and Councillors

Hutt City Council

FROM: Kathryn Stannard

DATE: 20 June 2018

SUBJECT: Council's Submission on the Zero Carbon Act

Recommendation

That Council endorses the attached submission to the Ministry of Environment as the Hutt City Council submission on the aims of the Zero Carbon Act.

Purpose of Memorandum

1. At the Community Plan Committee’s meeting held on 16 and 17 May 2018, Mr Arron Cox submitted to the Long Term Plan from Generation Zero. Mr Cox asked Council to consider endorsing the Zero Carbon Act (‘the Act’).

Purpose and Principles of the Zero Carbon Act

Purpose

2. The purpose of the Act is to:

· Get us to zero carbon.

· Help us adapt to climate change.

· Transparently support global climate action.

3. The Act will commit New Zealand to zero carbon in a timeframe consistent with limiting global temperature rise to well below 2°C above pre-industrial levels, and striving to limit warming to less than 1.5°C. These goals were agreed upon by all countries under the Paris Agreement.

4. Targets and plans under the Act must be set consistently with this purpose, Te Tiriti o Waitangi, and the other principles of the Act.

Principles

5. The Act is based on principles of responsibility, intergenerational equity, and Te Tiriti o Waitangi (the Treaty of Waitangi). It will ensure New Zealand’s zero carbon transition is fair, cost-effective, environmentally sustainable, and consistent with Te Tiriti.

6. An example of how the Act will give effect to equitable principles. Under the Act, the Minister must ensure that New Zealand’s pathway to zero carbon is fair and cost-effective. “Fairness” is a broad principle which will include providing for communities that are particularly affected by climate change and by climate policies. ”Cost-effectiveness” means meeting the Act’s long-term targets in a way that minimises costs and maximises benefits to New Zealand. In particular, this means setting targets and plans that avoid passing the cost of transition to young and future generations.

7. The Act will also give effect to other principles. These include sustainability and protecting New Zealand’s natural environment, a fair transition of the workforce to a zero carbon economy, and New Zealand’s responsibilities towards people relocating because of climate impacts.

Te Tiriti o Waitangi

8. Te Tiriti o Waitangi (the Treaty of Waitangi) is a foundational part of New Zealand’s constitution. The Act will honour Te Tiriti o Waitangi and give effect to meaningful partnership between iwi and the Crown.

Timeframe

9. The Ministry of Environment is seeking feedback on the Act by 19 July 2018.

10. The Zero Carbon Act will come into force in April 2019.

Author: Kathryn Stannard

Divisional Manager, Democratic Services

Approved By: Ray Wallace

Mayor

Attachment 1

SubmissionZeroCarbonAct

Ministry for the Environment 28 June 2018
PO Box 10362
Wellington, 6143

Email: ZCB.Submissions@mfe.govt.nz

Hutt City Council (Hutt City) welcomes and applauds the Government’s aims of the Zero Carbon Act.

We endorse the aims of the Zero Carbon Act of:

• Committing New Zealand to zero carbon by 2050 or sooner, and drive a fair and cost-effective transition.

· Safely adapting to the effects of New Zealand’s changing climate by central government preparing a National Climate Risk Assessment and producing an Adaption Programme to address the climate risks identified in the National Climate Risk Assessment.

· Ensuring New Zealand delivers on its international climate change obligations in a transparent manner.

Hutt City Council

379 28 June 2018

Our Reference 18/1035

TO: Mayor and Councillors

Hutt City Council

FROM: Kathryn Stannard

DATE: 12 June 2018

SUBJECT: LOCAL GOVERNMENT NEW ZEALAND - REMIT PROPOSALS

Executive Summary

1. Deputy Mayor Bassett will be attending the Local Government New Zealand (LGNZ) conference as Council’s delegate and as part of this will be attending the LGNZ AGM where he will be required to vote on proposed remits.

Purpose of Memorandum

2. The purpose of this memorandum is to obtain a decision from Council on support for remits to this year’s LGNZ Annual General Meeting on 22 July 2018 attached as Appendix 1 to the memorandum.

Options

3. Council may support the remits as proposed.

4. Council may decline to support the remits.

Recommendation

It is recommended that Council notes the following remits being submitted to Local Government New Zealand for consideration at the 2018 Annual General Meeting attached as Appendix 1 to the memorandum and:

(a) supports or does not support the remit ‘Drug testing in the community’;

(b) supports or does not support the remit “Heavy Commercial Vehicles Rural Roads Policy’;

(d) supports or does not support the remit ‘Climate change – advocate to banks’;

(e) supports or not does support the remit ‘Walking the talk - single use plastics’;

(f) supports or does not support the remit ‘Copper in brake pads’; and

(g) supports or does not support the remit ‘Reducing the waste stream’.

Author: Kathryn Stannard

Divisional Manager, Democratic Services

Approved By: Tony Stallinger

Chief Executive

Attachment 1

2018 AGM Remits