RESOLUTIONS ONLY                                                                       1                                    20 December 2022

TE KAUNIHERA O TE AWA KAIRANGI | HUTT CITY COUNCIL

 

Komiti Iti Mahere ā-Ngahurutanga / Mahere ā-Tau
Long Term Plan/Annual Plan Subcommittee

 

Resolutions of the meeting held in the Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt on

 Tuesday 20 December 2022 commencing at 2.30pm

 

 

5.       Recommendations to TE KAUNIHERA OF TE AWA KAIRANGI | Council - 20 December 2022

a)

Impact of the general revaluation 2022 and projected rating impacts for Draft Annual Plan 2023-24 (22/2455)

 

 

 

recommended:     (Mayor Barry/Cr Brown)         Minute No. LTPAP 22501

“That the Subcommittee recommends that Council:

(1)   notes that approval from the Valuer-General of the Lower Hutt revaluation was given on 2 December 2022;

(2)   notes that rating values for the city have increased in total by 32.7%;

(3)   notes the 2022 rating values contained in this report provide an early indication and are likely to change following the objections process;

(4)   notes that the current Revenue and Financing Policy, contained in the current Long Term Plan 2021-2031 was adopted following a review from a first principles approach as part of the Long Term Plan process;

(5)   agrees to progress the percentage apportionment of the total General Rate to 60% for residential ratepayers in 2023-24 in line with the current Revenue and Financing Policy and Long Term Plan 2021-2031; 

(6)   notes the four rates increase scenarios provided are early indications;

(7)   notes the community engagement plans in relation to the revaluation; and

(8)   notes the further directions provided to officers at the meeting.”

 


 

 

b)

Draft Annual Plan 2023-24 (22/2378)

 

RECOMMENDED:   (Mayor Barry/Cr Briggs)           Minute No. LTPAP 22502

“That the Subcommittee recommends that Council agrees to the budget matters as detailed in Table 2 of the officer’s report.”

 

recommended: (Mayor Barry/Deputy Mayor Lewis)                                                                                                                                  Minute No. LTPAP 22503

“That the Subcommittee recommends that Council:

(1)     agrees to the budget matters as detailed in Table 3 of the officer’s report; and

(2)     asks for further information on Item 5) Three Waters – advice from Wellington Water Limited regarding proposed Opex cost increases, Item 14) Network Resilience – Eastern Hutt Road and Item 16) Transport: Integrated Transport Strategy (ITS) costs.”

 

RECOMMENDED:    (Mayor Barry/Cr Briggs)      Minute No. LTPAP 22504

“That the Subcommittee recommends that Council:

(1)     agrees to the budget matters as detailed in Table 4 of the officer’s report; and

(2)     asks for further information on Item 2) Micro-mobility rephasing and Item 8) Community Panels.”

 

 

recommended:  (Mayor Barry/Cr Edwards)        Minute No. LTPAP 22505

“That the Subcommittee recommends that Council:

(1)     notes the 2023-24 Annual Plan is being prepared in an extremely challenging economic environment particularly driven by high inflation and borrowing costs;

(2)     notes that due to a significant change in the economic environment and the unavoidable cost pressures this has created within the Council budget and projects, officers have determined it is extremely unlikely to achieve the 5.9% rates revenue increase (plus growth assumption) set out in the 2021-2031 Long Term Plan;

(3)     notes that in response to budget pressures, Council’s Corporate Leadership Team have undertaken a detailed budget review process and identified $6.5 million in savings over the remaining eight years of the Draft Annual Plan 2023-24, as well as $12 million in avoided costs (mainly through employee cost savings);

(4)     notes the projected debt and balance budget results as detailed in Section D;

(5)     notes the comparison of the four rating scenarios that are presented in Section D of the report;

(6)     notes the report on the agenda entitled “Impact of the general revaluation 2022 and the rating options for consultation” and the detailed information on the four rating scenarios in this report;

(7)     notes that the impact on the average residential property valued at $815,000 will be an indicative rates increase (under the scenario 3 of 8.9% rates revenue increase plus growth) of $4.44 per week which includes rubbish and recycling services;

(8)     notes that scenario 3 (8.9% rates revenue increase plus growth) projects that the balanced budget will be achieved two years later than planned in the Long Term Plan 2021-2031 and that this is largely due to the inflationary cost pressures impacting Council services and investment programme, together with higher borrowing costs;

(9)     noting that maintaining the balanced budget projection to be achieved by 2028-29 in line with the Long Term Plan 2021-2031 would require further significant offsetting mechanisms through service cuts and work programme reductions, as well as significant immediate rates revenue increases to improve the position;

(10)   notes that there are a range of financial risks associated with the capital programme, operating expenditure, and the proposed revenue settings;

(11)   agrees to the budget matters as detailed in tables 2, 3 and 4 of the report;

(12)   notes the project schedules as detailed in Appendix 4 attached to the report;

(13)   notes the further direction and guidance provided to officers at the meeting ahead of the preparation of the draft Annual Plan 2023-24 and consultation material;

(14)   agrees to include the proposed fees and charges in the Draft Annual Plan 2023-24, refer to Appendix 5 to the report;

(15)   agrees to include in the Draft Annual Plan 2023-24 the scenario 3 proposed increases in targeted rates for Wastewater and Water Supply and notes that these are attributable to decisions to prioritise investment following advice from Wellington Water Limited, refer to table 8 contained within the report;

(16)   agrees to include in the Draft Annual Plan 2023-24 the proposed targeted rates for Waste Services (refuse, recycling, and green waste), refer to table 9 contained in the report;

(17)   agrees that the draft Annual Plan 2023-24 includes the delay of the balanced budget position being achieved by two years from 2028-29 to 2030-31;

(18)   agrees the Long Term Plan/Annual Plan Working Group be delegated the power to make decisions required to prepare the draft plan consultation material; and

(19)   agrees that any decisions made by the Annual Plan Working Group be reported back to the Long Term Plan/Annual Plan Subcommittee on 22 February 2023.”

 

recommended:   (Mayor Barry/Cr Brown)       Minute No. LTPAP 22506

“That the Subcommittee recommends that Council agrees to include a rates revenue increase in the draft Annual Plan 2023-24 for consultation of an overall 8.9% increase together with a growth-related rates revenue component of 1.1%, being scenario 3 as reported in table 5 and table 6 of the report.”

Cr Stallinger requested that his dissenting vote be recorded against the above matter.

 

c)

Wharves work programme (22/2597)

 

RECOMMENDED:     (Mayor Barry/Cr Shaw)          Minute No. LTPAP 22507

“That the Subcommittee recommends that Council:

(1)   notes that asbestos has been detected in the Point Howard wharf structure meaning there will be increased health and safety requirements for the demolition and disposal of materials;

(2)   notes that due to the presence of asbestos the cost of demolishing the Point Howard wharf is now expected to be between $3.1 to $3.6M, which is a budget shortfall of $1M to $1.5M;

(3)   approves the additional budget of $1.5M in the 2022-23 Annual Plan to enable the project to proceed in the 2023 and 2024 calendar years, and in partnership with Centreport;

(4)   notes the information provided on Petone wharf regarding cost, risk and strategic alignment; and

(5)   approves option (a) ‘Pause the Petone wharf project and leave a decision on future options for the 2024/34 Long Term Plan discussion; budget rephased to 2029/30 in the current Long Term Plan to help ease financial pressures’.”

For the reason that Council wishes to present a Draft 2023/24 Annual Plan that is within the allowable debt ceiling and enables the highest priority items to be funded.

7.       EXCLUSION OF THE PUBLIC

Resolved:    (Mayor Barry/Cr Morgan)                                   Minute No. LTPAP 22508

 

“That the public be excluded from the following parts of the proceedings of this meeting, namely:

3.       Urban Plus Limited - Request to increase loan funding (22/2614)

4.       RiverLink Commercial Update (22/2660)

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

 

 

 

 

 

 

 

(A)

(B)

(C)

 

 

 

General subject of the matter to be considered.

Reason for passing this resolution in relation to each matter.

Ground under section 48(1) for the passing of this resolution.

 

 

 

 

 

 

Urban Plus Limited - Request to increase loan funding.

The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities (s7(2)(h)).

That the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exist.

 

 

 

RiverLink Commercial Update.

The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities (s7(2)(h)).

The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) (s7(2)(i)).

That the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exist.

 

This resolution is made in reliance on section 48(1) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or 7 of that Act which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public are as specified in Column (B) above.

That Daniel Moriarty, Chief Executive from Urban Plus Limited be permitted to remain after the public section of the meeting as he has knowledge of matters that will assist the Council in relation to the Item 8: ‘Urban Plus Limited – Request to increase loan funding’.”