HuttCity_TeAwaKairangi_BLACK_AGENDA_COVER

 

 

 

6 April 2020

 

 

 

Pursuant to a requisition dated 31 March 2020 by Mayor Barry

An Extraordinary Council meeting will be held remotely

 

 

on:

 

 

 

Thursday 9 April 2020 commencing at 2.00pm

 

 

 

Membership

 

 

Mayor C Barry (Chair)

Deputy Mayor T Lewis

Cr D Bassett

Cr J Briggs

Cr K Brown

Cr B Dyer

Cr S Edwards

Cr D Hislop

Cr C Milne

Cr A Mitchell

Cr S Rasheed

Cr N Shaw

Cr L Sutton

 

 

 

 

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

 

Have your say

You can speak under public comment to items on the agenda to the Mayor and Councillors at this meeting. Please let us know by noon the working day before the meeting. You can do this by emailing DemocraticServicesTeam@huttcity.govt.nz or calling the Democratic Services Team on 04 570 6666 | 0800 HUTT CITY


HuttCity_TeAwaKairangi_SCREEN_MEDRES
 

 

 

 


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 Local Government Act 2002 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 Local Government Act 1974, 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 for Council employees.

 

DECIDE ON:

Policy issues

       Adoption of all policy required by legislation.

       Adoption of strategies, and policies with a city-wide or strategic focus.

 

District Plan

       Approval to call for submissions on any Proposed District Plan, Plan Changes and Variations.

       Prior to public notification, approval of recommendations of District Plan Hearings Subcommittees on any Proposed Plan, Plan Changes (including private Plan Changes) and Variations, on the recommendation of the Regulatory Committee.

 

1       Work required prior to the making of any of these decisions may be delegated.

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

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

       Acceptance, adoption or rejection of private Plan Changes.

 

Representation, electoral and governance matters

        The method of voting for the Triennial elections.

        Representation reviews.

        Council’s Code of Conduct for elected members

        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.

        Appointment and discharge of members of committees when not appointed by the Mayor.

        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

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.

 

Long Term and Annual Plans

        The adoption of the budgetary parameters for the LTP and Annual Plans.

        Determination of rating levels and policies required as part of the LTP.

        Adoption of Consultation Documents, proposed and final LTPs and proposed and final Annual Plans.

 

Council Controlled Organisations

        The establishment and disposal of any Council Controlled Organisation or Council Controlled Trading Organisation.

        Approval of annual Statements of Corporate Intent for Council Controlled Organisations and Council Controlled Trading Organisations.

 

Community Engagement and Advocacy

        Receive reports from the Council’s Advisory Groups.

        Monitor engagement with the city’s communities.

 

Operational Matters

        National Emergency Management Agency matters requiring Council’s  input.

        Road closing and road stopping matters.

        Approval of overseas travel for elected members.

        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.

        The recipients of the annual Civic Honours awards.

 

    


HUTT CITY COUNCIL

 

Extraordinary meeting to be held remotely on

Thursday 9 April 2020 commencing at 2.00pm.

 

ORDER PAPER

 

Public Business

 

 

 

 

 

1.       OPENING FORMALITIES - Karakia Timatanga 

Kia hora te marino

Kia whakapapa pounamu te moana

He huarahi mā tātou i te rangi nei

Aroha atu, aroha mai

Tātou i a tātou katoa

Hui e Tāiki e!

May peace be wide spread

May the sea be like greenstone

A pathway for us all this day

Let us show respect for each other

For one another

Bind us together!

 

2.       APOLOGIES 

Cr Shaw.

3.       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.

4.       Mayor's Statement (20/351)

5.       Chief Executive's Statement (20/352)

6.       CONFLICT OF INTEREST DECLARATIONS

Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.

7.       Response to Covid-19 pandemic - review of rates postponement policy (20/334)

Report No. HCC2020/3/83 by the Chief Financial Officer                                  9

8.       RESPONSE TO COVID-19 PANDEMIC AND DRAFT ANNUAL PLAN 2020/21 CONSIDERATIONS

          To be circulated separately.

9.       Community Resilience Fund Policy (20/333)

Report No. HCC2020/3/84 by the Head of Strategy and Planning                  33

10.     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.   

 

 

11.     CLOSING FORMALITIES - Karakia WHAKAMUTUNGA

 

Whakataka te hau ki te uru

Whakataka te hau ki te tonga

Kia mākinakina ki uta

Kia mātaratara ki tai

E hī ake ana te atakura

He tio, he huka, he hau hū

Tīhei mauri ora.

Cease the winds from the west
Cease the winds from the south
Let the breeze blow over the land
Let the breeze blow over the ocean
Let the red-tipped dawn come with a sharpened air. 
A touch of frost, a promise of a glorious day.

 

 

 

 

 

 

 

 

Kathryn Stannard

Head of Democratic Services

 

 

                         


                                                                                      18                                                           09 April 2020

Extraordinary Meeting of Council

31 March 2020

 

 

 

File: (20/334)

 

 

 

 

Report no: HCC2020/3/83

 

Response to Covid-19 pandemic - review of rates postponement policy

 

Purpose of Report

1.    To seek approval of a revised Rates Postponement Policy.

Recommendations

That Council:

(i)    notes that the proposed draft revised rates postponement policy has been prepared in response to the recent Covid-19 pandemic;

(ii)   notes that the proposed policy is considered an “interim” policy and that it will be reviewed in the next three to six months when better information is available about the Covid-19 pandemic and to enable further analysis and advice to be developed for Council;

(iii)  considers the proposed draft revised rates postponement policy attached as Appendix 3 and provides direction to officers; and

(iv) considers the establishment of a Subcommittee comprising of the Mayor, Deputy Mayor, Chairperson of the Policy, Finance and Strategy Committee and Chairperson of the Regulaotry Committee to further progress the development of this policy.

 

Background – Covid 19 pandemic

2.    The recent Covid-19 pandemic and lockdown have created a lot of uncertainty for businesses and households. 

3.    Both central government and local government are working hard to deliver solutions during this challenging period. In a very short period of time, we have seen a range of central government initiatives implemented, such as the wage subsidy scheme to help employers and employees. We have also seen New Zealand’s retail banks offering to defer repayments for all residential mortgages for up to six months for customers financially affected by Covid-19. 

4.    The uncertainties of the Covid-19 pandemic have impacted directly on council’s operations and services, with the closure of a range of council facilities such as Libraries and Leisure Centres. During the Covid-19 lockdown period it is critical that the Council continues to deliver essential services, such as keeping transport networks open and maintained, collecting rubbish, managing stormwater and wastewater, and providing safe drinking water.

5.    There is a lot of uncertainty as to the medium and longer term impacts of the pandemic. The possible financial effects that we have identified at this stage include:

-    Reduced regulatory revenue due to a slowdown in activity. This includes reduced demand for resource and building consents and fewer health licenses due to closures,

-    Changes to operational expenditure, with some services operating at reduced capacity, such as community facilities. Other services such as emergency services requiring more funding,

-    Reduced borrowing due to delays in the delivery of the capital expenditure programme,

-    Slightly higher borrowing levels due to some ratepayers and debtors extending payment terms due to cash flow difficulties.  

6.     Whilst the government is stepping in and providing business continuity funding which will limit job losses in the short term there will inevitably be financial hardship for a range of Lower Hutt ratepayers. For example the hospitality sector is expected to be the hardest hit and this is amplified with the closed borders and restrictions on domestic travel.

Local Government Response Unit

7.     A response unit has been set up as joint effort between DIA, SOLGM, LGNZ and NEMA (the old CDEM).  There are five work streams, including a Finance and Recovery Unit. Key messages delivered for the sector to-date are detailed below. HCCs messaging and actions align with these.

·   The Covid-19 pandemic has changed the world’s situation dramatically.

·   Councils are responsible for providing a number of services that are essential to keeping people healthy and safe throughout the Level 4 Lockdown and beyond.

·   These services include ensuring households have safe drinking water, that the waste water system keeps operating, rubbish is collected, public transport is available to get essential workers to work, burials in cemeteries can take place, essential roading and safety repairs are made, emergency services (Civil Defence) are on hand, and flood protection is being monitored.

·   Council staff that are not needed to keep essential services operating have often been deployed to back-up and support these services.

·   Your rates are what pays for these staff and services to keep operating and help our community stay healthy and safe.

·    The Government has provided a large package to support people’s incomes, including working with banks to provide mortgage holidays. People who have lost their jobs or are on reduced incomes may qualify for the Accommodation Supplement administered by the Ministry of Social Development through Work and Income.

·    Please do not just stop paying your rates or cancel your direct debit. If rates are not paid then our recovery will be slower, more painful and more expensive next year.

·    If you are experiencing hardship, please contact us to discuss and arrange a payment plan.

·    Remember that there are other places that you can go to get help, including your bank.

·    The following considerations will be specific to each Council. We recommend that each Council consider their policies and application for the following and include these in their communications as appropriate:

Rates penalties – some Councils are waiving or reducing late payment penalties.

Rates postponement options and how these may or may not apply.

Arrangements for payment of rates if ratepayers do not have internet banking facilities and would normally have paid via EFTPOS or cash.

 

Hutt City Council toolkit for rates relief

8.   Rates rebates 

-     These are funded by central government and enable ratepayers to obtain a rebate of up to $640 depending on criteria related to income, number of dependencies and property rate charges.

-     The Council rates team supports ratepayers, particularly elderly residents, to answer queries and complete the relevant application forms.

-     In 2018/19 we processed 1,890 rebates totaling $1.12M. 

9.   Rates remissions – there are a range of remission criteria under this policy:

a)   Remission of rates for community, sporting and other recreation organisations. In 2018/19 there were 59 remissions granted to a value of $55,500. For the 2019/20 year, as at end of March 2020 there have been $45,735 remissions over 41 properties.

b)   Remission of rates penalties is also provided for in certain circumstances. In 2018/19 there were 376 penalty remissions totaling $22,970. For the 2019/20 year, as at end of March 2020 there have been $35,486 remissions over 442 properties.

c)   Remission of targeted rates in certain circumstances  –  example being contiguous properties, where one property straddles two rating units, but have the same owner and are used jointly as one unit25 residential properties are contiguous.

d)   Remission on land protected for natural, historic or cultural, conservation purposes – currently no properties receive this remission

e)   Rates remission for economic development – three or five year agreements to remit up to 100% of HCC rates.   9 applications for Economic Remission totalling $466,757 for the 2019/20 rating year.

f)    Remission for residential land in commercial or industrial areas – currently no properties receive this remission.

g)   Remission of wastewater charges to schools. 55 schools currently receive a reduced charge on their pan charges.

h)   Remission of rates and charges on land affected by natural calamity – currently no properties receive this remission.

10.    Extended payment terms for ratepayers

Ratepayers can enter into extended payment arrangements by contacting the Rates Team in Council.  This may, for example, be arranging a weekly payment by direct debit to meet the personal circumstances of a ratepayer. Since the Covid-19 lockdown period commenced, there has communication to ratepayers that no rates penalties will be charged for ratepayers who have entered into payment arrangements.

 

11.    Rates postponements

There are two relevant policies here

a)   Rates postponement for financial hardship (Refer Appendix 1).

-      Applies to residential properties

-      Consideration given to personal circumstances including age, physical or mental disability, injury, illness and family circumstances.

-      There are currently no postponements under this policy.

b)   Rates postponement policy for residential ratepayers aged 65 years and over (Refer Appendix 2).

-      Introduced in July 2018

 

-      Applies to residential properties

-      Applicant is required to live in the property and be over 65 years old.

12.    A summary of the key requirements of these rates postponement policies:

 

-      Statutory land charge registered (to provide security to Council)

-      Total rates postponed when added to other amounts secured by a mortgage, not to exceed 60% of ratepayers equity in property

-      Insurance required on property

-      One-off establishment fee of $250

-      Interest applied at council’s average cost of funds plus one per cent charge to cover administrative costs of Council

-      Legal and financial advice recommended.

Rates postponement policy changes

– Problem definition re. Covid-19 pandemic

13.  There will be ratepayers both residential and commercial in the community who will be facing financial stress and not be able to pay their rates on the due dates as a result of the Covid-19 pandemic.  However, at this stage the Council does not know the impacts on individual properties.

14.  The current rates postponement for financial hardship as noted above only applies to residential properties and considers personal circumstances including age, physical or mental disability, injury, illness and family circumstances. It does not consider the financial consequences of the pandemic (or other event that has similar social and economic impacts).

15.  At this stage, the Council has no information as to the number of ratepayers that will be impacted financially; however we do know that there will be groups of ratepayers that will be still able to pay their rates on the due dates without causing financial hardship.  It is important to note at this stage the Government have implemented a number of packages to reduce the financial impact of the pandemic.

16.  There will be businesses that are impacted in the short term and will recover, however there will be businesses that a full recovery may be sometime well into the future – e.g. Businesses with a heavy reliance on overseas travel.  There will also be businesses that will fail and never recover.  It is important to note that rates have priority over any other charges or encumbrances on the rating unit.

17.  At this stage it is important that the Council provides a framework that provides a mechanism that provides rating relief for those ratepayers who need it.

18.  Also note that the current rates postponement policy for financial hardship is very old and is due to review (Appendix 2).

What are other Councils doing with rates postponement policy in response to Covid-19

19.  Most Councils across NZ have similar rates postponement policies to provide support for those in financial hardship and this is restricted to residential properties.  There are some Councils that have policies which allow for rates postponement in the event of a natural calamity (e.g. Kaikoura earthquake).

20. As the Covid-19 pandemic is so recent, there are a number of Councils reviewing possible options but have not made any changes as yet.

Assessing the options

21.  Option 1 - Do nothing and rely on the existing policy.

This is the simplest option, but provides no certainty to ratepayers and properties used for non-residential purposes could not apply.

The risk for Council is using the existing policy is that Council will be seen to not be responsive and supportive to businesses experiencing financial hardship.

22.  Option 2 - Provide a postponement policy now with all the conditions and criteria

       As the financial impact of the Covid -19 pandemic are not known, it will be difficult to develop a policy now that would be fair to all ratepayers. It is likely this policy will need to be reviewed at a later date when better information was available.

23.  Option 3 - Wait until Council is formally requested to extend the rates postponement policy (for example as part of the LTP amendment consultation).

As Council must consider the consultation process in developing a policy, there would be a time lag before Council could develop the policy and then implement it.

Preferred option

24.  Option 2 is recommended by officers to be progressed. Whilst there is uncertainty and the policy will need to be reviewed when more information is available, it would enable Council to be proactive and responsive to the Covid-19 pandemic.

25.  It is recommended that the current rates postponement policies are combined into one policy and additional criteria added to expand eligibility to enable specifically smaller business impacted by an event, such as Covid-19 pandemic or some other event such as a natural disaster, to apply for rates postponement.

 


 

Consideration of specific criteria to be included in the rates postponement policy

       Criteria 1 - Limiting rates postponement to lower valued properties in order to target small businesses which are more likely to benefit

26.  The total rates charged to business properties in 2019/20 was $30.4M which is spread across 2,361 properties.

27.  To limit the financial exposure of Council and also to target a solution for small businesses impacted by Covid-19, it is proposed that the policy includes a criteria restriction on the capital value of the property. Appendix 4 provides detailed analysis of the 2019/20 rates income generated by business properties, including the average capital values of these properties. Various capital values of business properties are considered alongside the total rates income generated by those properties. Table 1 provides a summary.

Table 1: Summary of analysis of business properties (details in Appendix 4)

Maximum property value

Total HCC rates income

Number of properties

Up to $1.5M

$11.1M

1,905

Up to $1.25M

$9.8M

1,812

Up to $1M

$8.2M

1,667

Up to $0.75M

$5.9M

1,403

 

28.  There is a lot of uncertainty currently around the financial impact of the pandemic and how many properties would potentially apply for a rates postponement. As there has been limited information and time to assess this, it is recommended that the Council include a limit of properties up to a capital value of $1M. This can be reviewed by Council when more information is available and amended if need be. Table 2 that follows provides more details relating to properties up to value of $1M. In summary the total HCC rates exposure per annum is $8.2M and a total number of properties is 1,667.

Table 2: Business properties with capital values up to $1M

Business Type

Number of properties

Average capital value

$

Average HCC rates

$

Total HCC rates

$M

Total  rates incl. GWCR $M

Accommo-dation

9

$646,667

$6,981

$0.06M

$0.072M

Central

234

$485,103

$5,212

$1.22M

$1.4M

Suburban

1,424

$459,057

$4,862

$6.9M

$7.9M

 

Total

 

1,667

 

 

 

$8.2M

 

$9.4M

         Note the information here is based 2019/20 rates and property value. With the recent September 2019 property valuation changes which take effect from 1 July 2020 the number of properties would reduce slightly.

 

       Criteria 2 - Limiting rates postponement period to the specific event and a limited applicable period of that event

29.  Definition of an event in the proposed policy: An event declared by Council resolution where the Council will define the type and/or the location of the properties affected. An event could be a natural or an economic event.

30.  Some types of events which the Council may decide are applicable could be significant storms, earthquake, pandemic, recession etc.

31.  The ratepayer will need to provide proof that they are affected by the event. In the case of Covid-19 lockdown cafes and restaurants would be impacted due to the rules around essential services whilst supermarkets are not. The policy will not specify exactly how this proof will be provided. Guidance will be developed to support the application of the policy. There would be an element of judgement required by officers and the need for a case-by-case assessment.

32.  Council would resolve that the event has happened and specify the start and end date of the event.  Rates could be postponed for the period of the event and for one year after the event, or as resolved by Council.

Climate Change Impact and Considerations

33.  The matters addressed in this report have been considered in accordance with the process set out in Council’s Climate Change Considerations Guide. The approval of this rates postponement policy does not have a direct impact of Council’s greenhouse gas emissions. However it does have financial implications for Council as there will be increased debt projections and consequently reduced funding capacity for other projects. The approval of the policy therefore may impact on Council’s future ability to fund new projects/initiatives that do support the reduction of greenhouse gas emissions.  

Consultation

34.  The Local Government Act 2002 requires local authorities to follow the principles of consultation (found in section 82) before adopting a rates remission or postponement policy. There is some discretion as to how these principles are applied and the Council can decide what is appropriate after taking into account what it already knows of community views and the significance of the decision. 

35.  The Council currently has a rates postponement policy and is proposing an amendment to this policy. Amending the policy to provide a mechanism for the Council to modify the conditions and criteria by subsequent resolution provides flexibility as more information becomes known.

36.  Council’s significance and engagement policy is included in the Long Term Plan 2018-2028. The policy provides the framework to consider Council decisions about issues, assets and other matters and whether a special consultative procedure is required. The policy has a range of thresholds and criteria. The key aspects include:

-      Net costs to Council- increase of 10% of planned capital expenditure or 5% of planned operating expenditure

-      Reversibility and intergenerational equity “the more irreversible the effects of a decision the more significance it has”

-      The extent to which the matter under consideration is of public interest or controversial within the community.

The proposed changes to the rates postponement policy have been assessed against the criteria of the policy. Officers are of the view that there is no requirement to progress a special consultative procedure (SCP) in relation to this amendment to the rates postponement policy. If the policy was to be extended to have wider financial implications for Council then it is expected that a SCP should be followed.

37.  Despite the proposed policy not meeting the significant and engagement policy threshold, the Council may choose to consult on this regardless. Whilst this would delay the implementation of the policy, it would enable better input into the development of the policy and also more time to consider more fully the impact of Covid-19 and further consider other options and criteria. 

Next Steps

38.  Following Council decisions and direction, officers will work to finalise the policy as directed by Council.

39.  Officers will aim to report back to Council regarding the notification of an event as per the policy in relation to the Covid-19 pandemic.

40.  Officers will continue to monitor the pandemic and consider further possible responsive actions that Council could take. This will include engaging across the local government sector to see what options are being developed and progressed.

Legal Considerations

41.  The policy is prepared under sections 102 and 110 of the Local Government Act 2002.

Financial Considerations

42.  There is lot of uncertainty as to the financial implications of the proposed changes to the rates postponement policy. With the criteria limiting it to business properties with a value of up to $1M there is potentially financial exposure of $8M of rates income per year. Not all these businesses are expected to be impacted directly by the event. The current uptake of the existing rates postponement is low. If we were to assume that a third of properties applied then the amount of rates would be up to $2.5M. The Council’s cashflow would be impacted as this cash would not be received and the Council would need to be increase borrowings levels to fund this. The policy has a limited period for an “event” and so the exposure could be for more than one year. The cost of the borrowings would be on-charged to the ratepayers so there would be no net loss to Council from an operating perspective. The debt limits set in the Financial Strategy are not expected to be materially impacted by the potential exposure here

Appendices

No.

Title

Page

1

Appendix 1 - Existing policy : Rates postponement policy for residential ratepayers aged 65 years and over

19

2

Appendix 2 - Existing policy : Rates postponement policy financial hardship

24

3

Appendix 3 -  DRAFT New rates postponement policy

26

4

Appendix 4 - Analysis of business rates income

32

 

 

 

 

Author: Jenny Livschitz

Chief Financial Officer

 

 

 

 

Approved By: Jo Miller

Chief Executive

 


Attachment 1

Appendix 1 - Existing policy : Rates postponement policy for residential ratepayers aged 65 years and over

 

rates postponement policy for residential ratepayers aged 65 years and over 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Division

Corporate Services – Finance

Date created

2 March 2018

Publication date

22 November 2018

Review period

Every five years (or earlier if considered necessary)

Owner

Chief Financial Officer

Approved by

General Manager, Corporate Services

 

Version

Author

Date

Description

V 1.0

Mark de Haast

28/03/2018

Approved by Council for public

consultation

V 2.0

Mark de Haast

06/06/2018

Approved by Council subject to minor changes required by a Council nominated Working Party

V 3.0

Mark de Haast

22/11/2018

Approved by Council nominated working party

 


Contents

 

1.     Policy Objective. 3

2.     Policy Conditions and Criteria. 3

2.1       General Approach. 3

2.2       Eligibility. 3

2.3       Insurance. 3

2.4       Rates Able To Be Postponed. 4

2.5       Conditions. 4

2.6       Review Or Suspension Of Policy. 5

2.7       Procedures. 5

 

1.     
Policy objective

The objective of this policy is to give ratepayers a choice between paying rates now or later subject to the full cost of rates postponement being met by the ratepayer and Council being satisfied that the risk of loss in any case is minimal.

2.      policy conditions and criteria

 

2.1        general approach

Only rating units defined as residential and used for personal residential purposes by the applicant ratepayer(s) as their sole or principal residence will be eligible for consideration of rates postponement under the criteria and conditions of this policy.

Current and all future rates may be postponed if at least one ratepayer (or, if the ratepayer is a family trust, at least one named occupier) is 65 years of age or older.

If the ratepayer is eligible for the government rate rebate, an application for this rebate should be completed before any rates are postponed for that year.

Council will add all administrative and financial costs to the postponed rates. This will ensure neutrality between ratepayers who use the postponement option and those who pay as rates are levied.

2.2        eligibility

Any ratepayer aged 65 years or over is eligible for postponement provided that the rating unit is used by the ratepayer as their sole or principal residence. This includes in the case of a family Trust owned property, use by a named individual or couple.

If the property in respect of which postponement is sought is subject to a mortgage, then the applicant ratepayer(s) will be required to obtain the mortgagee’s consent before Council will agree to postpone rates.

When a property is owned by a family Trust, Council must be satisfied that all trustees have agreed to be part of the postponement scheme. Council will require a consent form from the trustees confirming that the family Trust has agreed to apply for postponement of rates.

Council must be satisfied, based on reasonable assumptions, that the risk of any shortfall when postponed rates, (including accumulated administration and finance costs), are ultimately paid is negligible. To best safeguard Council, the total amount of rates postponed (including accumulated administration and finance costs), when added to other amounts secured by a mortgage, may not exceed 60% of the applicant ratepayer(s) equity in the property. Equity in the property is calculated as the difference between Council’s rateable value of the property (the capital value at the most recent Triennial valuation) and all other amounts secured by a property mortgage.

For prudential reasons, Council will need to register a statutory land charge against the property to protect its right to recover postponed rates.

At present, the law does not allow Councils to register such a statutory land charge against Māori freehold land. Accordingly, Māori freehold land is not eligible for rates postponement (unless and until the law is changed so that the Council can register a statutory land charge).

2.3        insurance

The property must be insured for its full replacement value and evidence of this must be provided to Council annually.

If insurance cannot be arranged because the property is uninsurable, only the land value can be used when calculating maximum postponement allowable under this policy.

2.4        RATES ABLE TO BE POSTPONED

Hutt City Council rates are eligible for postponement except for:

§ Lump sum options which are rates paid in advance.

§ Central government rates rebates received by the applicant ratepayer(s).

2.5        CONDITIONS

Any postponed rates (under this policy) will be postponed until:

a)      The death of the ratepayer(s) or the survivor of them, or nominated individual or couple where a family Trust is the owner. In this case, Council will allow up to 18 months for payment so that there is sufficient time available to settle the estate or, in the case of a family Trust owned property, make arrangements for repayment; or

b)     The rating unit is sold or transferred (other than just a change of trustees).

c)      Until the ratepayer(s) or nominated individual or couple cease to be the occupier(s) of the rating unit; or

d)     If the ratepayer(s) or nominated individual or couple continue to own the rating unit, but are placed in long term residential care, Council will consider them to still be occupying the residence for a limited period of time for the purpose of determining when postponement ceases and rates are to be paid in full. In this case, Council will allow up to 18 months for payment so that there is ample time for the property to be sold; and

e)      Until a date specified by Council, as agreed in writing and in advance between Council and either the applicant ratepayer(s) or the named individual or couple in the case of a family Trust.

The administration cost will include a once-off establishment fee of $250 plus GST on postponed rates and Council will charge an annual management fee of $100 plus GST on postponed rates for the period between the rates payment due date and the date they are paid. These fees are designed to cover Council’s administrative costs to establish the rates postponement account, register the statutory land charge (one-off) and confirm adequate annual insurance cover is in place and provide rates postponement account statements to eligible ratepayer(s) every two (2) months.

The financial cost will be the interest that Council will incur (being Council’s average cost of borrowings as at 30 June of the preceding financial year, calculated daily, for funding rates postponed, plus a margin of 1% to cover staff costs related to calculating and applying such interest charges to respective postponed rates accounts.

Interest will be applied to rates postponement accounts every six (6) months and will be included in the total rates postponement balance, as shown on ratepayers’ statement of account  every instalment one (1) and four (4) respectively.

Whilst is not a condition, Council strongly recommends that applicant ratepayer(s) should first obtain independent legal and/or financial advice from a suitably qualified person(s), prior to applying for a rates postponement. At the request of the applicant ratepayer(s), all costs associated with this independent advice can be paid directly by Council and the total costs will be added to the applicant ratepayer(s) postponed rates account.

The postponed rates, (including accumulated administration and finance costs), or any part thereof, may be paid to Council at any time. The applicant ratepayer(s) may elect to postpone the payment of a lesser sum than that which they would be entitled to postpone pursuant to this policy.

Properties that are granted a rates postponement will be subject to a statutory land charge being registered on the rating unit title. This serves to ensure that property settlements do not occur without all postponed rates and charges being fully paid.

2.6        REVIEW OR SUSPENSION OF POLICY

The policy is in place indefinitely and can be reviewed subject to the requirements of the Local Government Act 2002 at any time. Any resulting modifications will not change the entitlement of people already in the postponement scheme, to continued postponement of all future rates.

Council reserves the right not to postpone any further rates once the postponed rates (including accumulated administration and finance costs), combined with secured borrowings against the residential property, exceed 60% of Council’s rateable value of the property as recorded in Council’s rating information database.  This will require the ratepayer(s) for that property to pay all future rates. All postponed rates before such time will only fall due for payment when any condition(s), as outlined in clause 2.5 (a) to (e) are satisfied.

The policy consciously acknowledges that future changes in policy could include withdrawal of this rates postponement scheme.

2.7        PROCEDURES

Applications must be on the required application form which will be available from the Council’s main office or online at www.huttcity.org.nz.

The policy will apply from the beginning of the rating year in which the application is made although Council may consider backdating the rates postponement to apply to the past rating year in which the application is made, depending on the individual circumstances.

The policy shall apply to ratepayers who meet the relevant criteria as approved by the General Manager, Corporate Services.

The administration of this policy may be sub-delegated to a Council Officer(s) as appropriate.

 


Attachment 2

Appendix 2 - Existing policy : Rates postponement policy financial hardship

 

 

 

 

 

 

RATES POSTPONEMENT POLICY

 

 

 


INTRODUCTION

This policy is prepared under sections 102 and 110 of the Local Government Act 2002.

 

OBJECTIVE

To assist ratepayers experiencing extreme financial circumstances which affect their ability to pay rates.

 

CONDITIONS AND CRITERIA

Ë Only rating units used solely for residential purposes (as defined by Council) will be eligible for consideration for rates postponement for extreme financial circumstances.

Ë   Only the person entered as the ratepayer, or their authorised agent, may make an application for rates postponement for extreme financial circumstances. The ratepayer must be the current owner of, and have owned for not less than five years, the rating unit which is the subject of the application. The person entered on Council’s rating information database as the ‘ratepayer’ must not own any other rating units or investment properties (whether in the district or in another district).

Ë The ratepayer (or authorised agent) must make an application to Council on the prescribed form.

Ë Council will consider, on a case-by-case basis, all applications received that meet the criteria described in the first two paragraphs under this section.


Ë When considering whether extreme financial circumstances exist, all of the ratepayer’s personal circumstances will be relevant including the following factors: age, physical or mental disability, injury, illness and family circumstances.

Ë Before approving an application Council must be satisfied that the ratepayer is unlikely to have sufficient funds left over, after the payment of rates, for normal health care and proper provision for maintenance of his/her home and chattels at an adequate standard as well as making provision for normal day-to-day living expenses.

Ë Before approving an application Council must be satisfied that the ratepayer has taken all steps necessary to claim any central government benefits or allowances the ratepayer is properly entitled to receive to assist with the payment of rates.

Ë Where Council decides to postpone rates the ratepayer must first make acceptable arrangements for payment of future rates, for example, by setting up a system for regular payments.

Ë Any postponed rates will be postponed until:

The death of the ratepayer(s).

  The ratepayer(s) ceases to be the owner or occupier of the rating unit.

The ratepayer(s) ceases to use the property as his/her residence.

A date specified by Council.

Ë Council, as authorised by section 88 of the Local Government (Rating) Act 2002, will charge an annual fee on postponed rates for the period between the due date and the date they are paid. This fee is designed to cover Council’s administrative and financial costs and may vary from year to year. The fee that will be charged in the 2009/10 financial year is $50.

Ë Even if rates are postponed, as a general rule the ratepayer will be required to pay the first $500 of the rate account.

Ë The policy will apply from the beginning of the rating year  in which the application is made although Council may consider backdating past the rating year in which the application is made depending on the circumstances.

Ë    The postponed rates or any part thereof may be paid at  any time. The applicant may elect to postpone the payment of a lesser sum than that which they would be entitled to have postponed pursuant to this policy.

Ë Postponed rates will be registered as a statutory land charge on the rating unit title. This means that Council will have first call on the proceeds of any revenue from the sale or lease of the rating unit.

 

DELEGATIONS

Council will delegate authority to approve applications for rates postponement to particular Council officers.


DRAFTAttachment 3

Appendix 3 -  DRAFT New rates postponement policy

 

rates postponement policy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Division

Corporate Services – Finance

Date created

1 April 2020

Publication date

TBA

Review period

Every five years (or earlier if considered necessary)

Owner

Chief Financial Officer

Approved by

Council

 

Version

Author

Date

Description

V 1.0

Jenny Livschitz

Chief Financial Officer

1/4/2020

Draft policy for review by Council

 


Contents

 

1.     Policy Objective. 3

2.     Policy Conditions and Criteria. 3

2.1       General Approach. 3

2.2       Eligibility. 3

2.3       Insurance. 3

2.4       Rates Able To Be Postponed. 4

2.5       Conditions. 4

2.6       Review Or Suspension Of Policy. 5

2.7       Procedures. 5

 

1.     
Policy objective

The objective of this policy is to give ratepayers a choice between paying rates now or later subject to the full cost of rates postponement being met by the ratepayer and Council being satisfied that the risk of loss in any case is minimal.

2.      policy conditions and criteria

2.1        general approach

If the ratepayer is eligible for the government rate rebate, an application for this rebate should be completed before any rates are postponed for that year.

Council will add all administrative and financial costs to the postponed rates. This will ensure neutrality between ratepayers who use the postponement option and those who pay as rates are levied.

2.2        Definitions

An event – An event declared by Council resolution where the Council will define the type and/or the location of the properties affected. An event could be a natural or an economic event.

Financial hardship – This is when ratepayer income reduces to a level where paying rates would result in financial hardship.

Small business – Is a business operated by a sole trader, partnership or a close company as defined by section YA 1 Income Tax Act 2007.

2.3        eligibility

Only rating units defined as residential and used for personal residential purposes by the applicant ratepayer(s) as their sole or principal residence will be eligible for consideration of rates postponement under the following conditions and criteria:

-     Any ratepayer aged 65 years or over is eligible for postponement provided that the rating unit is used by the ratepayer as their sole or principal residence. This includes in the case of a family Trust owned property, use by a named individual or couple.

-     Any ratepayer experiencing financial hardship due to personal circumstances such as age, physical or mental disability, injury, illness and family circumstance is eligible for postponement. Ratepayers applying under these criteria must demonstrate to Council’s satisfaction that paying the rates would result in financial hardship.

Only rating units defined as residential or used by a small business (as defined by the Council) will be eligible for consideration of rates postponement under the following conditions and criteria:

-     Any ratepayer experiencing financial hardship directly resulting from an event (as defined by the Council) which affects their ability to pay rates is eligible for postponement

-     The rateable value of the property cannot be greater than $1 million.

-     The ratepayer must demonstrate to Council’s satisfaction where paying the rates would result in financial hardship.

-     The ratepayer must be the current owner of the property for the previous six months at the time the event is declared.

-     Only the person entered as the ratepayer (in the case of a closed company every director must sign the application form), or their authorised agent, may make an application for rates postponement for an event that resulted in financial hardship.

-     The entity entered on Council’s rating information database as the ‘ratepayer’ must not own any other rating units other than a residential property in the case of business or in the case of a business, their residential property.

-     The applicant must demonstrate to Council’s satisfaction that the ratepayer has taken all steps necessary to claim any central government benefits or allowances the ratepayer is properly entitled to receive to assist with the payment of rates.

The following criteria apply to all applicants:

If the property in respect of which postponement is sought is subject to a mortgage, then the applicant ratepayer(s) will be required to obtain the mortgagee’s consent before Council will agree to postpone rates.

When a property is owned by a family Trust, Council must be satisfied that all trustees have agreed to be part of the postponement scheme. Council will require a consent form from the trustees confirming that the family Trust has agreed to apply for postponement of rates.

Council must be satisfied, based on reasonable assumptions, that the risk of any shortfall when postponed rates, (including accumulated administration and finance costs), are ultimately paid is negligible. To best safeguard Council, the total amount of rates postponed (including accumulated administration and finance costs), when added to other amounts secured by a mortgage, may not exceed 60% of the applicant ratepayer(s) equity in the property. Equity in the property is calculated as the difference between Council’s rateable value of the property (the capital value at the most recent Triennial valuation) and all other amounts secured by a property mortgage.

For prudential reasons, Council will need to register a statutory land charge against the property to protect its right to recover postponed rates.

At present, the law does not allow Councils to register such a statutory land charge against Māori freehold land. Accordingly, Māori freehold land is not eligible for rates postponement (unless and until the law is changed so that the Council can register a statutory land charge).

2.4        insurance

The property must be insured for its full replacement value and evidence of this must be provided to Council annually.

If insurance cannot be arranged because the property is uninsurable, only the land value can be used when calculating maximum postponement allowable under this policy.

2.5        RATES ABLE TO BE POSTPONED

Hutt City Council rates are eligible for postponement except for:

§ Lump sum options which are rates paid in advance.

§ Central government rates rebates received by the applicant ratepayer(s).

2.6        CONDITIONS

Any postponed rates (under this policy) will be postponed until:

a)      The rating unit is sold or transferred (other than just a change of trustees).

b)     Until a date specified by Council, as agreed in writing and in advance between Council and the applicant ratepayer(s).

In the case of rates postponement due to an event

c)   Until one year after the Council resolves the effects of the event are no longer felt in the community. At that date, the ratepayer must make arrangements to repay outstanding rates

In the case of rates postponement due to a ratepayer being over the age of 65

d)     Until the ratepayer(s) or nominated individual or couple cease to be the occupier(s) of the rating unit; or

e)      The death of the ratepayer(s) or the survivor of them, or nominated individual or couple where a family Trust is the owner. In this case, Council will allow up to 18 months for payment so that there is sufficient time available to settle the estate or, in the case of a family Trust owned property, make arrangements for repayment; or

f)      If the ratepayer(s) or nominated individual or couple continue to own the rating unit, but are placed in long term residential care, Council will consider them to still be occupying the residence for a limited period of time for the purpose of determining when postponement ceases and rates are to be paid in full. In this case, Council will allow up to 18 months for payment so that there is ample time for the property to be sold, and

g)     Until a date specified by Council, as agreed in writing and in advance between Council and either the applicant ratepayer(s) or the named individual or couple in the case of a family Trust.

For all rates postponements:

The administration cost will include a once-off establishment fee of $250 plus GST on postponed rates and Council will charge an annual management fee of $100 plus GST on postponed rates for the period between the rates payment due date and the date they are paid. These fees are designed to cover Council’s administrative costs to establish the rates postponement account, register the statutory land charge (one-off) and confirm adequate annual insurance cover is in place and provide rates postponement account statements to eligible ratepayer(s) every two (2) months.

The financial cost will be the interest that Council will incur, being Council’s average cost of borrowings as at 30 June of the preceding financial year, calculated daily, for funding rates postponed, plus a margin of 1% to cover staff costs related to calculating and applying such interest charges to respective postponed rates accounts.

Interest will be applied to rates postponement accounts every six (6) months and will be included in the total rates postponement balance, as shown on ratepayers’ statement of account  every instalment one (1) and four (4) respectively.

Whilst is not a condition, Council strongly recommends that applicant ratepayer(s) should first obtain independent legal and/or financial advice from a suitably qualified person(s), prior to applying for a rates postponement. At the request of the applicant ratepayer(s), all costs associated with this independent advice can be paid directly by Council and the total costs will be added to the applicant ratepayer(s) postponed rates account.

The postponed rates, (including accumulated administration and finance costs), or any part thereof, may be paid to Council at any time. The applicant ratepayer(s) may elect to postpone the payment of a lesser sum than that which they would be entitled to postpone pursuant to this policy.

Properties that are granted a rates postponement will be subject to a statutory land charge being registered on the rating unit title. This serves to ensure that property settlements do not occur without all postponed rates and charges being fully paid.

2.7        REVIEW OR SUSPENSION OF POLICY

The policy is in place indefinitely and can be reviewed subject to the requirements of the Local Government Act 2002 at any time. Any resulting modifications will not change the entitlement of people already in the postponement scheme, to continued postponement of all future rates.

Council reserves the right not to postpone any further rates once the postponed rates (including accumulated administration and finance costs), combined with secured borrowings against the residential property, exceed 60% of Council’s rateable value of the property as recorded in Council’s rating information database.  This will require the ratepayer(s) for that property to pay all future rates. All postponed rates before such time will only fall due for payment when any condition(s), as outlined in clause 2.5 (a) to (e) are satisfied.

The policy consciously acknowledges that future changes in policy could include withdrawal of this rates postponement scheme.

2.8        PROCEDURES

Applications must be on the required application form which will be available from the Council’s main office or online at www.huttcity.org.nz.

The policy will apply from the beginning of the rating year in which the application is made although Council may consider backdating the rates postponement to apply to the past rating year in which the application is made, depending on the individual circumstances.

The policy shall apply to ratepayers who meet the relevant criteria as approved by the Chief Financial Officer.

The administration of this policy may be sub-delegated to a Council Officer(s) as appropriate.

 


Attachment 4

Appendix 4 - Analysis of business rates income

 


                                                                                      36                                                           09 April 2020

Extraordinary Meeting of Council

31 March 2020

 

 

 

File: (20/333)

 

 

 

 

Report no: HCC2020/3/84

 

Community Resilience Fund Policy

 

Purpose of Report

1.    The purpose of this report is to propose the Community Resilience Fund Policy for approval. The Policy includes a decision making process.

Recommendations

That Council:

(i)    notes that in response to the unprecedented public disruption caused by Covid-19 and its likely ongoing impact on the community, Council has established a Community Resilience Fund;

(ii)   notes that the Community Resilience Fund Policy will guide the disbursement of the Fund;

(iii)  notes that purpose of the Community Resilience Fund is to ensure that organisations, groups and initiatives across Lower Hutt are financially supported to deliver services that support local resilience during the Covid-19 Alert level 4 period and following recovery period;  

(iv) notes that the criteria targets the Fund to organisations that are a NGO, registered charity and/or a community group providing community support to others in need to enable and strengthen our communities and improve their well-being during a time of crisis;

(v)  notes the decision making process;

(vi) notes that a maximum grant per application of $2,000 is suggested ;and

(vii)     agrees to the Community Resilience Fund Policy attached as Appendix 1 to the report.

For the reasons outlined in the report.

 

Background

2.    On 24 March 2020, Council agreed to establish a Community Resilience Fund (the Fund) in response to the unprecedented public disruption caused by Covid-19 and its likely ongoing impact on the community. The Community Resilience Fund Policy (the Policy) will guide the disbursement of the Fund.

Discussion

3.    The Policy is made up of four parts: principle, purpose, criteria and decision making  The principle or basis for the Policy is:

Supporting those supporting others in need by providing limited funding to organisations, groups and initiatives that support local resilience, enabling and strengthening our communities to improve their well-being during a time of crisis.

 

4.    The purpose of the Policy is:

To ensure that organisations, groups and initiatives across Lower Hutt are financially supported to deliver services that support local resilience during the Covid-19 Alert level 4 period and following recovery period.

 

5.    The intention is that the Fund and its disbursement will be targeted to those organisations and individuals that met the following criteria:

a.       The organisation is a NGO, registered charity and/or community group that is or will be providing essential community-led solutions to support local resilience and community wellbeing; and

b.       The organisation does qualify for other Covid-19 related financial assistance packages available through government or other funding bodies but this amount is not enough to support their initiative/s; OR

c.       The organisation does not qualify for other Covid-19 related financial assistance packages available through government or other funding bodies; and

d.      Applications must provide details :

i.     how the grant will be used to fund the proposed community-led solution and support wellbeing for people in the community;

ii.    total grant amount requested and how the amount has been calculated; and

iii.   how the they will bring the resources together that are needed to deliver the initiative and how delivery will be done

e.       Assessments of applications will take into account Council’s Community Funding Policy its purpose and priorities; and

f.       Grants allocated from the Fund will be one-off; and

g.       Priority will be given to requests that support Maori, Pacific, older people, people with disabilities, migrant communities, those without a place to live and people who are rurally isolated.

6.    The Fund is also intended to complement, not replace, other community funding already in place through the Community Funding Policy.

7.    There is provision for considering retrospective applications and a limit of $2,000 per request.  The decisions on eligibility will be made by the CE, GM Community and City Services and the Head of Mayor’s Office.  The decision making process is outlined in the policy.

8.    The decision making Panel will report to the Community and Environment Committee weekly or as the number and complexity of funding applications and approvals necessitates.

9.    Successful applicants will be followed up provide a short story about their initiative including:

a.    what they did and how it was delivered

b.    what impact the initiative had; and

c.     how the grant funds were spent

10.  There are examples of what can and cannot be funded through the Community Resilience Fund to help guide potential applicants.

Options

11.  Council has the option of approving the Policy as written OR approving it with amendments OR declining to approve the Policy. 

Climate Change Impact and Considerations

12.  The matters addressed in this report have been considered in accordance with the process set out in Council’s Climate Change Considerations Guide. There are no climate change impacts or considerations likely to result from the operation of the Community Resilience Fund.    

Consultation

13.  Section 78 of the Local Government Act 2002 requires a local authority, in the course of its decision-making process in relation to a matter, to give consideration to the views and preferences of persons likely to be affected by, or to have an interest in, that matter.  Section 78 on its own does not require the local authority undertake any consultation process or procedure but is subject to Section 79.  

14.  Under Section 79 the local authority must make a judgement, in its discretion, about how to achieve compliance with Section 78. This judgement must be made with regard to and in proportion to the significance of the matter at hand.  The significance of the matter is determined in accordance with the Council’s Significance and Engagement Policy.

15.  Council’s Significance and Engagement Policy is included in the Long Term Plan 2018-2028. The policy provides the framework to consider Council decisions about issues, assets and other matters and whether a special consultative procedure is required. The policy has a range of thresholds and criteria. The key aspects include:

·    Net costs to Council- increase of 10% of planned capital expenditure or 5% of planned operating expenditure

·    Reversibility and intergenerational equity “the more irreversible the effects of a decision the more significance it has”

 

·    The extent to which the matter under consideration is of public interest or controversial within the community.

 

16.  The proposed Community Resilience Fund Policy has been assessed against the criteria of the policy.

17.  Officers are of the view that the proposed fund and policy do not trigger the Significance and Engagement Policy and therefore there is no requirement to progress a special consultative procedure in relation to either the proposed fund or the policy. 

18.  Officers are also of the view that, due to the difficulties of engaging directly with residents at this time when they have many other issues to deal with, progressing with other forms of engagement would not be appropriate. Given the size of the Fund, its purpose and the current circumstances it is officer’s view that the community will be supportive of the Community Resilience Fund and its intentions.

Legal Considerations

19.  There are no legal considerations. 

Financial Considerations

20.  Council agreed to establish a Community Resilience Fund on 24 March 2020.

Appendices

No.

Title

Page

1

Appendix 1 Community Resilience Fund Policy 2020

37

    

 

 

Author: Wendy Moore

Head of Strategy and Planning

 

 

 

Author: Bradley Cato

Chief Legal Officer/General Counsel

 

 

 

Approved By: Jo Miller

Chief Executive

 


Attachment 1

Appendix 1 Community Resilience Fund Policy 2020

 

Community Resilience Fund Policy

 

Principle

 

Supporting those supporting others in need by providing limited funding to organisations, groups and initiatives that support local resilience, enabling and strengthening our communities to improve their well-being during a time of crisis

 

Purpose of Fund

 

To ensure that organisations, groups and initiatives across Lower Hutt are financially supported to deliver services that support local resilience during the Covid-19 Alert level 4 period and following recovery period

 

Criteria

 

·    The organisation is a NGO, registered charity and/or community group that is or will be providing essential community-led solutions to support local resilience and community wellbeing; and

·    The organisation does qualify for other Covid-19 related financial assistance packages available through government or other funding bodies but this amount is not enough to support their initiative/s; OR

·    The organisation does not qualify for other Covid-19 related financial assistance packages available through government or other funding bodies; and

·    Applications must provide details on:

how the grant will be used to fund the proposed community-led solution and support wellbeing for people in the community;

total grant amount requested and how the amount has been calculated; and

how the they will bring the resources together that are needed to deliver the initiative and how delivery will be done

·    Assessments of applications will take into account Council’s Community Funding Policy; and

·    Grants allocated from the Fund will be one-off.

 

Retrospective applications

 

Consideration will be given to reimbursing costs to a NGO, registered charity and/or community group that has provided, or is already providing, essential community-led solutions to support local resilience and community wellbeing during the Covid-19 Alert 4.

 

These applications will be considered using the same criteria for other applications together with the total amount requested, including the total amount already spent, how the amount has been calculated and available receipts.

 

Decision making

 

·    Request to Chief Executive or Mayor’s Office

·    Advice prepared for decision making panel made up of Chief Executive, Acting General Manager Community and City Services and Head of Mayor’s Office

·    Panel to make final decisions on Funding

·    The decision making Panel will report to Community and Environment committee weekly or as the number and complexity of funding applications and approvals necessitates

When will the Grant fund become available?

The fund is available from 10 April 2020 and will remain available until the fund has been fully allocated.

What can and can’t be funded – some examples

Some examples of initiatives that can be funded are:

·      supporting community efforts to maintain links with and support each other in new ways in light of social distancing and other possible requirements;

·      translation services for published information;

·      developing local plans to provide food and supplies for people not able to access these because of self-isolation concerns and implementing them;

·      preparation of meals to be distributed from a central place like local Marae;

·      wider assistance with self-isolation and development of community outreach programme including technology based solutions

What we cannot fund:

·      salaries or administration costs, activities that intend to generate profit, the promotion of commercial, political, or religious objectives, or the purchase of alcohol;

·      wage subsidy or direct financial assistance;

·      major changes in service demand on current services;

·      grants are not to be for the sole benefit of one individual.

How much funding is available?

·    The fund has an initial cap of up to $2000 (excluding GST) per request.

·    Requests that are more than the initial cap will be considered by exception and may require further documentation.

·    A total budget of $100,000 (GST exclusive) is available for allocation.

Monitoring and Reporting

Council will make follow up contact with successful recipients. Fund recipients will need to provide a short statement about their initiative including:

·      what you did and how it was delivered

·      what impact the initiative had

·      how the grant funds were spent.

Entities receiving funding are required to account for this by providing a report on how the funds were utilised. Council reserves the right to audit this information.