Minutes of Hutt City Council

2 27 October 2020

Minutes of an ordinary meeting of The Hutt City Council held in the Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt on

Tuesday 27 October 2020 commencing at 6.29pm

PRESENT:	Mayor C Barry (Chair)	Deputy Mayor T Lewis
	Cr J Briggs	Cr K Brown
	Cr B Dyer	Cr S Edwards
	Cr D Hislop	Cr A Mitchell
	Cr S Rasheed	Cr N Shaw
	Cr L Sutton

APOLOGIES: Cr D Bassett and Cr C Milne

IN ATTENDANCE: Ms J Miller, Chief Executive

Ms A Blackshaw, Director Neighbourhoods and Communities

Ms H Oram, Director Environment and Sustainability

Mr M Boggs, Director Strategy and Engagement

Ms J Livschitz, Chief Financial Officer

Mr B Cato, Chief Legal Officer

Ms K Glanville, Senior Democracy Advisor

Ms H Clegg, Minute Taker

PUBLIC BUSINESS

1. APOLOGIES

RESOLVED: (Mayor Barry/Cr Briggs) Minute No. C 20601(2)

“That the apologies received from Cr Bassett and Cr Milne be accepted and leave of absence be granted.”

2. PUBLIC COMMENT

There was no public comment.

3. CONFLICT OF INTEREST DECLARATIONS

Cr Hislop declared a conflict of interest in relation to the Business Incubator Funding/Start Up Hub matter in Item 5iii) Long Term Plan 2021-2031, Financial aspects.

Cr Dyer noted he had previously undertaken contract work for Love Wainuiomata, however he was no longer involved with the organisation.

4. Committee Minutes with Recommended Items

Long Term Plan/Annual Plan Subcommittee

24 September 2020

Resolved: (Mayor Barry/Cr Shaw) Minute No. C 20602(2)

“That the report of the meeting held on 24 September 2020, with the exception of items 4i)-4vi), be adopted.”

Recommended Items

Item 4i)

The strategic context and key assumptions for the City Plan and Long Term Plan 2021-2031 (20/901)

Resolved: (Mayor Barry/Cr Edwards) Minute No. C 20603(2)

“That Council:

(i) notes the strategic context for the development of the City Plan and the Long Term Plan 2021-31;

(ii) agrees the key directions, assumptions, and priorities;

(iii) agrees these key directions, assumptions, and priorities will underpin:

(a) the planning, strategy and policy documents that make up the 2021 -31 Long Term Plan; and

(b) all future planning, strategy and policy development;

(iv) establishes a working group to provide ongoing guidance on the Long Term Plan consultation document and questionnaire to allow this to be submitted for typesetting by February 2021; and

(v) agrees that the membership of the working group be Mayor Barry, Deputy Mayor Lewis, Cr Edwards and Cr Hislop.”

Item 4ii)

Long Term Plan 2021-2031, Financial aspects (20/988)

Resolved: (Mayor Barry/Cr Edwards) Minute No. C 20604(2)

“That Council:

(i) agrees the high level plan as detailed in table 2 outlined in Report No. LTPAP2020/5/212;

(ii) endorses the proposed Financial Strategy principles to be included in the Draft Long Term Plan 2021-2031;

(iii) agrees the proposed changes to the Long Term Plan activity structure as detailed in Section D of Report No. LTPAP2020/5/212;

(iv) agrees the proposed Long Term Plan revenue assumptions as detailed in the Section E of Report No. LTPAP2020/5/212;

(v) agrees the proposed Long Term Plan operating and capital expenditure assumptions as detailed in Section F of Report No. LTPAP2020/5/212;

(vi) agrees the proposed change to the debt to revenue limit to be included in the Long Term Plan, as detailed in table 8 of Report No. LTPAP2020/5/212; and

(vii) endorses the budget matters as detailed in table 9 of the officer’s report in the preparation of the Draft Long Term Plan 2021-2031.”

Item 4iii)

Revenue and Financing Policy review (20/863)

Resolved: (Mayor Barry/Cr Edwards) Minute No. C 20605(2)

“That Council:

(i) notes that as part of the preparation of Draft Long Term Plan 2021-2031, that the Revenue and Financing Policy is being reviewed;

(ii) endorses the proposed approach to the review of the Revenue and Financing Policy as detailed in Section C contained in the officer’s report;

(iii) endorses the proposed ‘Funding Needs Analysis’ section of the Revenue and Finance Policy section, attached as Appendix 1 to Report No. LTPAP2020/5/207;

(iv) notes this ‘Funding Needs Analysis’ will underpin further work to be undertaken in relation to setting fees, rates and other funding sources for the Long Term Plan 2021-2031 and in future years; and

(v) notes the work completed to date on updates to the Revenue and Finance Policy.”

Item 4iv)

Rating Policy Review (20/989)

Resolved: (Mayor Barry/Cr Edwards) Minute No. C 20606(2)

“That Council:

(i) notes that rates affordability is a key consideration in the Council’s Financial Strategy, as detailed in Section A contained in Report No. LTPAP2020/5/209;

(ii) notes that in approving the rating policy in the Annual Plan 2020/21, Council agreed to a rates policy review being undertaken from a first principles approach, as part of the Long Term Plan (LTP) 2021-2031;

(iii) notes that the rates policy will be consulted on as part of the Draft LTP 2021-2031 process, with relevant details included in the Revenue and Financing Policy and the Rates Funding Impact Statement;

(iv) notes the overall approach to the rating review as outlined in Section C contained in Report No. LTPAP2020/5/209;

(v) agrees that there is to be no change to Council continuing to set general rates based on the capital value of properties, refer Section E contained in Report No. LTPAP2020/5/209;

(vi) agrees that there is no change to targeted rates, apart from those changes relating to refuse and recycling, refer Section F contained in Report No. LTPAP2020/5/209;

(vii) agrees that a Uniform Annual General Charge is not implemented, refer Section G contained in Report No. LTPAP2020/5/209;

(viii) agrees in principle that the Community Facilities differentials and related rates remission policy continue unchanged, refer Section H contained in Report No. LTPAP2020/5/209;

(ix) agrees in principle to progressing changes to rural rates to align with the District Plan rural activity description, refer Section I contained in Report No. LTPAP2020/5/209;

(x) having considered the method of setting general rates differentials as contained in Section J of Report No. LTPAP2020/5/209, directs officers to further develop options to support its preferred option of using a percentage of rates methodology, as compared with a multiplier methodology;

(xi) requests officers to develop options which would see the residential share of rates at 60%, 58% and 56%, with options around staging any changes over time;

(xii) having considered the options to change general rates differentials as contained in Section K of Report No. LTPAP2020/5/209, requests officers to further develop options of merging differentials for Business Central and Business Queensgate;

(xiii) having considered the options to change general rates differentials as contained in Section K of Report No. LTPAP2020/5/209, requests officers to further develop options of removing the differential for Business accommodation, by merging into either Business Suburban or Business Central depending on location; and

(xiv) notes that officers will report back to the Subcommittee on
27 October 2020 with further analysis and advice in relation to rating policy review.”

Item 4v)

Development Contributions Policy Review (20/909)

Resolved: (Mayor Barry/Cr Edwards) Minute No. C 20607(2)

“That Council:

(i) notes that Wellington Water Limited has indicated that significant investment is required to support forecast growth in Lower Hutt;

(ii) notes that economic incentive remissions packages for development contributions have ceased and that consequently, all new developments now pay full development contribution charges;

(iii) agrees in principle to:

a. expand growth planning and capacity life horizons for the Development Contributions Policy to 30 years;

b. retain the scope of activities funded by development contributions – water, wastewater, transport, and stormwater;

c. retain a policy where 100% of the capital cost of providing growth related infrastructure for water, wastewater, transport, and stormwater are funded by development contributions; and

d. introduce differentiated development contribution assessment rates for smaller residential units; and

(iv) agrees to update the Development Contributions Policy to be more user friendly and align it with best practice in the sector.”

Item 4vi)

Three Waters investment options for the 2021-31 Long Term Plan (20/1001)

Resolved: (Mayor Barry/Cr Edwards) Minute No. C 20608(2)

“That Council:

(i) notes that Wellington Water Limited (WWL) has provided Council with two investment options (represented as low and mid), to consider for possible inclusion in the Long Term Plan 2021-31;

(ii) notes that both these options represent an overall increase in investment in both operational and capital expenditure to address identified key challenges, including;

(a) the timely renewal of ageing infrastructure;

(b) enabling growth;

(c) reducing water consumption;

(d) improving environmental water quality; and

(e) reducing carbon emissions;

(iii) notes the information on the estimated rates impact of each option as detailed in paragraph 22 of Report No. LTPAP2020/5/206;

(iv) notes that government funding Council is expected to receive as part of the financial package being made available through the reform process will help to offset some of the short term costs associated with the proposed increase in 3 waters expenditure;

(v) requests officers to work with WWL on preparing a modified mid option for further consideration; and

(vi) requests officers to undertake work as part of the Long Term Plan to specifically consider affordability of required 3 waters investments, and measures and strategies which alleviate the immediate impact on ratepayers.”

RECOMMENDATIONS TO COUNCIL FROM THE LONG TERM PLAN/ANNUAL PLAN SUBCOMMITTEE MEETING HELD ON 27 OCTOBER 2020

Resolved: (Mayor Barry/Cr Mitchell) Minute No. C 20609(2)

“That Council adopts the recommendations made on the following reports, and any amendments or additional items agreed at the Long Term Plan/Annual Plan Subcommittee meeting held on 27 October 2020:

(i) Long Term Plan Amendment – Recycling and Rubbish Collection;

(ii) 2021-2031 Long Term Plan – vision, goals and emerging options;

(iii) Long Term Plan 2021-2031- Financial aspects;

(iv) Long Term Plan 2021-2031 Rating Policy Review update report #2;

(v) Three Waters Investment 2031-2031 Long Term Plan; and

(vi) Draft Heritage Policy 2020.”

Local Government Funding Agency - Annual General Meeting (20/1240)

Report No. HCC2020/6/225 by the Treasury Officer

Resolved: (Mayor Barry/Cr Dyer) Minute No. C 20610(2)

“That Council:

(i) notes that the upcoming Annual General Meeting (AGM) for Local Government Funding Agency (LGFA) is scheduled to take place on 19 November 2020;

(ii) notes that the LGFA Shareholders’ Council recommends that Philip Cory-Wright and Mike Timmer be re-elected as directors of LGFA, attached as Appendix 1 to the report;

(iii) directs officers to vote at the AGM in support of the re-election of Philip Cory-Wright and Mike Timmer as Directors of LGFA;

(iv) directs officers to vote at the AGM in support of the re-election of Wellington City Council and Tasman District Council as Nominating Local Authorities on the Shareholders’ Council; and

(v) directs officers to vote at the AGM supporting changes to the LGFA Foundation Policies.”

7. QUESTIONS

There were no questions.

8. 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.

There being no further business the Chair declared the meeting closed at 6.34 pm.

C Barry

MAYOR

CONFIRMED as a true and correct record

Dated this 8th day of December 2020