Notice is hereby given that a Meeting of the Stewart Island Jetties Subcommittee will be held on:

 

Date:                            

Time:

Venue:

 

Monday, 30 October 2017

12.00 pm

Stewart Island Pavilion, Ayr St, Stewart Island

 

Stewart Island Jetties Subcommittee Agenda

OPEN

 

 

MEMBERSHIP

 

Chairperson

Bruce Ford

Councillor

Members

Dale Chittenden

Department of Conservation

 

Aaron Conner

Community Board

 

Colin Hopkins

Commercial Fishing

 

Ian Munro

Community Representative

 

Phillip Smith

Iwi

 

Jon Spraggon

SI Promotion Association

 

Lyndon Cleaver

Environment Southland

 

IN ATTENDANCE

 

Committee Advisor

Kirsten Hicks

 

Community Partnership Leader

Michelle Stevenson

 

 

 

Contact Telephone: 0800 732 732

Postal Address: PO Box 903, Invercargill 9840

Email: emailsdc@southlanddc.govt.nz

Website: www.southlanddc.govt.nz

 

Full agendas are available on Council’s Website

www.southlanddc.govt.nz

 

 

 


 


Stewart Island Jetties Subcommittee

30 October 2017

 

TABLE OF CONTENTS

ITEM                                                                                                                                                                                  PAGE

Procedural

1             Apologies                                                                                                                                                                5

2             Leave of absence                                                                                                                                                5

3             Conflict of Interest                                                                                                                                             5

4             Public Forum                                                                                                                                                         5

5             Extraordinary/Urgent Items                                                                                                                        5

6             Confirmation of Minutes                                                                                                                               5

Reports for Recommendation

7.1         Stewart Island Jetties Budgets for the Long Term Plan 2018-28                                           9

Reports

8.1         Financial Report to Stewart Island Jetties subcommittee for the year ended 30 June 2017                                                                                                                                                                                    23   


1             Apologies

 

Apology for non-attendance from Mr Colin Hopkins and Mr Lyndon Cleaver

 

2             Leave of absence

 

At the close of the agenda no requests for leave of absence had been received.

 

3             Conflict of Interest

 

Committee 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.

 

4             Public Forum

Notification to speak is required by 5pm at least two days before the meeting. Further information is available on www.southlanddc.govt.nz or phoning 0800 732 732.

 

5             Extraordinary/Urgent Items

To consider, and if thought fit, to pass a resolution to permit the committee to consider any further items which do not appear on the Agenda of this meeting and/or the meeting to be held with the public excluded.

Such resolution is required to be made pursuant to Section 46A(7) of the Local Government Official Information and Meetings Act 1987, and the Chairperson must advise:

(i)     the reason why the item was not on the Agenda, and

(ii)          the reason why the discussion of this item cannot be delayed until a subsequent meeting.

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

“Where an item is not on the agenda for a meeting,-

(a)    that item may be discussed at that meeting if-

(i)            that item is a minor matter relating to the general business of the local authority; and

(ii)           the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but

(b)             no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”

 

6             Confirmation of Minutes

6.1             Meeting minutes of Extraordinary Stewart Island Jetties Subcommittee, 01 September 2017


sdclogo

 

 

Extraordinary Stewart Island Jetties Subcommittee

 

OPEN MINUTES

UNCONFRIMED

 

Minutes of a meeting of Extraordinary Stewart Island Jetties Subcommittee held in the Committee Room, SDC, Invercargill on Friday, 1 September 2017 at 2.45pm.

 

present

 

Chairperson

Bruce Ford

 

Members

Dale Chittenden

Department of Conservation

 

Lyndon Cleaver

Environment Southland

 

Aaron Conner

Community Board

 

Colin Hopkins

Commercial Fishing

 

Phillip Smith

Local Iwi

 

Jon Spraggon

Stewart Is. Promotion Assoc.

 

 

IN ATTENDANCE

 

Chief Executive Steve Ruru, Councillor Julie Keast, Chief Financial Officer Anne Robson, Management Accountant Robert Tweedie, Management Accountant Susan McNamara, Community Partnership Leader Michelle Stevenson, Manager Governance and Democracy Clare Sullivan, Property Manager Kevin McNaught, Community Engineer Greg Erskine, Committee Advisor Kirsten Hicks


1          Apologies

 

Apology for non-attendance was lodged by Member Munro.

 

            Moved Member Spraggon, seconded Member Conner

           

Resolved that the Stewart Island Jetties Subcommittee accepts the apology for non-attendance lodged by Member Munro.

 

2          Leave of absence

 

At the close of the agenda no requests for leave of absence had been received.

 

3          Conflict of Interest

 

Member Aaron Conner declared a conflict of interest.

 

4          Public Forum

 

There were no members of the public seeking speaking rights.

 

5          Extraordinary/Urgent Items

 

There were no Extraordinary/Urgent items.

 

 

Public Excluded

 

Exclusion of the Public: Local Government Official Information and Meetings Act 1987

Resolution

Moved Member Chittenden, seconded Member Spraggon 

That the public be excluded from the following part(s) of the proceedings of this meeting.

C6.1  Golden Bay Wharf Ownership

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:

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

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

Golden Bay Wharf Ownership

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

 

s7(2)(i) - 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).

 

That the public conduct of the whole or 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 exists.

 

That the Chief Executive Steve Ruru, Councillor Julie Keast, Chief Financial Officer Anne Robson, Management Accountant Robert Tweedie, Management Accountant Susan McNamara, Community Partnership Leader Michelle Stevenson, Manager Governance and Democracy Clare Sullivan, Property Manager Kevin McNaught, Community Engineer Greg Erskine, Committee Advisor Kirsten Hicks be permitted to remain at this meeting, after the public has been excluded, because of their knowledge of the item C6.1 Golden Bay Wharf Ownership. This knowledge, which will be of assistance in relation to the matters to be discussed, is relevant to those matters because of their knowledge on the issues discussed and meeting procedure.

 

 

The public were excluded at 2.47pm

 

Resolutions in relation to the confidential items are recorded in the confidential section of these minutes and are not publicly available unless released here.

 

 

The meeting concluded at 3.05pm                CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Stewart Island Jetties Subcommittee HELD ON 1 SEPTEMBER 2017

 

 

 

DATE:...................................................................

 

 

 

CHAIRPERSON:...................................................

 

 


Stewart Island Jetties Subcommittee

30 October 2017

 

Stewart Island Jetties Budgets for the Long Term Plan 2018-28

Record No:        R/17/10/25690

Author:                 Brendan Gray, Community Engineer

Approved by:       Anne Robson, Chief Financial Officer

 

  Decision                              Recommendation                         Information

 

  

 

Purpose

1        To set local budgets for 2018-2028 and propose rates for the year commencing 1 July 2018.

Executive Summary

2        This report provides an overview of the local activities and services for Stewart Island Jetties for 2018-2028 which are provided under the governance of the Stewart Island Jetties subcommittee.  The report details the estimated costs of these activities over the 10 years as well as the draft rates.

3        The draft budgets will be incorporated into the Council’s draft Long Term Plan (LTP)
2018-2028 which will be released for consultation in March 2018.  Once the plan is finalised (and subject to any changes resulting from submissions), the budgets shown for 2018/2019 will be used to set rates for the year beginning 1 July 2018 (referred to as LTP year 1).

4        The information in this report and its attachments, has been sourced from previous discussions between the committee and community partnership leader/community engineer along with Activity Management Plans (AMPs) that staff have prepared.  The AMPs contain more detail about the activities and expenditure requirements.

 

 

Recommendation

That the Stewart Island Jetties Subcommittee:

a)            Receives the report titled “Stewart Island Jetties Budgets for the Long Term Plan 2018-28” dated 25 October 2017.

b)           Determines that this matter be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

c)            Determines that it has complied with the decision-making provisions of the Local Government Act 2002 to the extent necessary in relation to this decision; and in accordance with Section 79 of the Act determines that it does not require further information, further assessment of options or further analysis of costs and benefits or advantages and disadvantages prior to making a decision on this matter.

d)           Requests Council sets the fees and charges (including GST) for the year commencing 1 July 2018 as follows:

Fee Description

Fee Amount (GST Incl)

Wharf and Jetty Annual Fee

$1,350.00

Boat Park Fee

$287.50

 

e)            Identifies any issues/priority projects for the local area that need to be included in the 2018-2028 Long Term Plan consultation process to encourage feedback from the local community (to be discussed at the meeting, and advised if any).

 

 


 

Background

5        The LTP is adopted every three years and provides the community with information on the role, scope, service level and priority of Council activities for 10 years.

6        In preparing the LTP budgets and programmes, Council reviews its strategic direction, various policies and Activity Management Plans (AMPs).  The Council also develops a series of assumptions about the environment that it expects to operate in during the 10 year period.  Council summarises this information in a document for consultation with the community.

7        The LTP Consultation Document is released to the public in March 2018 and the community has an opportunity to provide feedback on the proposed plan.  Council will decide on any changes to the draft plan before it is adopted in June 2018.

8        Year 2 and 3 of the LTP are used as the basis for the Annual Plan’s for those years.

Overview of the Process

9        The separate Strategic Framework paper on the committee agenda outlines some of the significant changes predicted in Southland communities and the Council’s operating environment in the future that will impact on our activities, services and rates affordability in the future.

10      Council has been discussing these changes as part of the development of the 2018 LTP and the implications in terms of affordability and appropriateness of Council services for the community in the future.

11      However, in order to be able to engage in a meaningful way with the community about the issues and options, Council has identified a need to gather better information to inform choices and develop a more strategic approach to responding to these issues across the District.

12      As such, as part of the 2018 LTP, Council is looking to begin developing this information over the next three years to inform these conversations ahead of the 2021 LTP, where specific choices and decisions will need to be made.

13      In the interim, the 2018 LTP is going to be a transitional plan, where budgets and work programmes are generally expected to be similar to previous years except in areas where there is legislative or regulatory compliance requirements, outstanding issues that need to be addressed or where work is needed to progress the Council’s strategic priorities (see diagram below).

14      This is expected to enable Council to start working on the more strategic/fundamental issues facing Southland in the future and get better information and analysis to assist the Council and communities to make informed decisions about how to adapt to these changes as part of the 2021 LTP and beyond.

15      As such each local committee should also be aware that while the 2018 LTP has minimal change, there is likely to be a fuller review of activities and services and what is ‘fit for purpose’ and how they are funded over the next three years.  As part of the process, local committees will have an opportunity be involved in this work.

Issues

Local Budget Development

16      The draft budgets for Stewart Island Jetties for 2018-2028 have been prepared.  Figures for these budgets have flowed out of the review of Activity Management Plans as well as discussions between local committees and community partnership leaders/community engineers over the past few months.

17      The aim of this has been to ensure that all projects and changes to expenditure have been discussed prior to the budget meetings so that the meetings are focussed primarily on the rates recommendation.  This approach has been taken because the LTP is audited and officers need budgets to be finalised earlier to enable to the audit to occur.

18      While we are aiming to have few changes at budgets meetings, we realise that some committees may want to carry our further investigations before finalising their programme.  If this is the case, we would encourage committees to keep their changes to a minimum if possible and consider whether these can be processed through the annual budget/project review (via the Annual Plan) or through the unbudgeted expenditure process.

19      The objective of this budget report is to highlight issues, confirm priorities and plan expenditure and funding for the next 10 years for the Stewart Island Jetties subcommittee’s consideration as part of the Council’s LTP.

20      If approved by Council via the LTP, the subcommittee will be able to spend the Council funds allocated in accordance with the budgeted expenditure.  This occurs via Council officers approving purchase orders.  The delegation that officers who work with the Stewart Island Jetties subcommittee have to spend on budgeted expenditure ranges from $20,000 (Community Engineer) to $200,000 (Strategic Manager Property).  If the subcommittee wishes to spend funds that are unbudgeted, including monies from reserves, then the decision will need Council approval.

21      In preparation for the 2018-2028 LTP, Council staff are reviewing and updating Council’s various Asset/Activity Management Plans (AMPs).

22      Included in Attachment A (Section C) of this report is a summary of all planned projects for Stewart Island Jetties for the next 10 years as extracted from the draft AMPs.  Copies of the full draft AMPs can be obtained by contacting the relevant Council officer who manages the asset portfolio.  Summaries of Council’s AMPs will also be available online throughout the duration of the Long Term Plan consultation period.

23      Attachment A is organised into four main sections as follows:

(A)    Overview

This section includes details of the proposed fees for Stewart Island Jetties (compared to the previous year) for the committee to consider.  The section also includes an overview of reserves and loans.

(B)    Financial Information and Activity Summary

This section contains a summary of the financial budgets.  It shows the expenditure and income projected over the 10 years. This section also includes the draft fees and charges (reflected in section A).

(C)    Planned Projects

This section includes a list of the maintenance and capital projects planned for the Stewart Island Jetties for the next 10 years.

More detailed reports, outlining options for specific projects will be submitted to the subcommittee closer to the implementation dates as is appropriate.

(D)   Appendices

The appendices contains detailed reports in support of information in the body of the report as follows:

(i)    Reserves Report - this shows the balance the reserve for each of the 10 years.

(ii)   Loan Report - this shows the balance of every internal and external loan for each of the 10 years.


 

Factors to Consider

Legal and Statutory Requirements

24      The draft budgets (including details of projects) will form part of the activity statements and financials in the Council’s LTP 2018-2028.  The LTP (and associated Consultation Document) is a requirement of the Local Government Act 2002.

25      There is a statutory requirement to adopt an LTP before rates can be set in accordance with the provisions of the Local Government (Rating) Act 2002.

Community Views

26      Any significant issues affecting local communities may be included in the official consultation document which will be publicly available from early March to mid April 2018.  The consultation document will be posted out to each household throughout the District.

27      The broader local budgets for all the communities will be summarised in the financial projections which will be available as background information to the public consultation.

28      Local committees are also asked to advise officers of any local issues/projects that they would like to be highlighted in the consultation material where they are wanting to encourage feedback from the local community or let the community know of any significant projects.

29      Any submissions received from the public on local issues will be forwarded to the relevant officer (and Chairperson and board/committee if required) for comment.  As a result of the submission process, amendments may be made prior to Council formally adopting the finalised LTP by 30 June 2018.

Costs and Funding

30      The financial considerations are set out in Attachment A of this report.  Key financial aspects to be aware of include:

-     The sub-committee should consider increasing the fees for the wharf and boat park.  As can be seen in section A. Overview, these fees have remained static at the current rate for at least the last 3 years for the Wharf and the last 2 years for the boat park.

-     The budget this year has seen an increase in the costs for maintenance from $3.7k in the current budget to $25k form 18/19 onwards this represents a budget of $5k per wharf and is a reflection of potentially what is needed as a minimum to maintain the wharves.  This is being funded by way of a contribution from the Stewart Island Community Board by way of an increase in the general rate.

-     The project table indicates a number of projects that have been included in the 10 years to maintain the assets and also additional projects, funding of these projects is from loans, potential grants and existing reserves.  The repayment of loans will be funded in part from a contribution from the Stewart Island Community Board local rate.

-     As indicated above a contribution of $30k plus inflation is being budgeted to come from the Stewart Island Community Board rate on an annual basis.

 

Assumptions

31      In preparing the 10 year forecasts, the Council has used a number of assumptions as follows:

·    Estimates are built from the levels of service desired by the community.

·    Estimates have been included for expected costs in relation to the Water and Land Plan

·    Interest has not yet been included in the projected reserve balances for the 10 years of the plan.  Once the budgets have been finalised, interest will be calculated and transferred directly to the relevant reserves (later in 2017).

·    The estimates include an allowance for price level changes (inflation) which is a financial reporting requirement.  For the plan inflation has been assumed at between 2-2.8% per annum.

·    Interest on borrowings has been charged at 4.65% per annum.

·    No allowance has been made in the estimates for any possible increases in contract rates for contracts being re-tendered.

·    Reserves used to fund project/capital work where possible rather than internal loans.

·    Where loan funding is required for key projects, it is assumed that these loans will be obtained internally in the first instance.

Policy Implications

32      The report is a summary of plans prepared in respect to all of the services the Stewart Island Jetties subcommittee intends to provide during the 10 year period from 1 July 2018 to 30 June 2028.  The information including the estimates will be incorporated in the draft 2018 LTP Consultation Document and final LTP 2018-2028.

Analysis

Options Considered

33      Officers have developed the projects to be included in the Long Term Plan and may have already discussed these with the subcommittee.

Analysis of Options

Option 1 – Accept the estimates as proposed in this report

Advantages

Disadvantages

·        Enables the Long Term Plan to be complied and audited with the set timeframe

·        Rates recommendation to Council is finalised.

·        Budgets and project estimates can be updated or reviewed annually as part of the Annual Plan budgeting process (or approved via unbudgeted expenditure process).

·        None identified

Option 2 – Amend the estimates proposed in the report

Advantages

Disadvantages

·        Changes can be made to the Long Term Plan budgets.

·        Rates requirement may need to be recalculated.

·        May impact the delivery of the Long Term Plan within the set timeframe.

Assessment of Significance

34      The decision to be made by the Community Development Area subcommittee is not likely to be a significant decision on its own under the Council’s significance and Engagement Policy.  However, the Long Term Plan (into which the committee’s budgets are incorporated) is considered significant and will be consulted on in March/April 2018.

Recommended Option

35      Option 1 Accept the estimated reports as proposed in this report.

Next Steps

36      The draft 10 year budgets and rating information for 2018-28 for the Stewart Island Jetties subcommittee will be included in the draft LTP financial information for confirmation by Council in February 2018 and consultation through March-April 2018.

 

Attachments

a             Stewart Island Jetties Estimates and Local Activity Plan Information for the Draft Long Term Plan (LTP) 2018-2028 (Attachment A)    

 


Stewart Island Jetties Subcommittee

30 October 2017

 


 


Stewart Island Jetties Subcommittee

30 October 2017

 


Stewart Island Jetties Subcommittee

30 October 2017

 


Stewart Island Jetties Subcommittee

30 October 2017

 


 

 


Stewart Island Jetties Subcommittee

30 October 2017

 

Financial Report to Stewart Island Jetties subcommittee for the year ended 30 June 2017

Record No:             R/17/10/25070

Author:                      Brendan Gray, Community Engineer

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

Community financial performance for the year

1       The graph above shows what actually happened (Actuals), what the original budget was (Original annual budget) and then what was expected to occur by year end (Reforecast annual budget) for each of the Income, Expenditure, and Capital Expenditure categories.

2       The ‘Reforecast’ totals show the effect of unbudgeted expenditure, projects that have been put on hold or are to be completed in 2017/2018 and/or expected changes to income and operating expenditure over the year.

3       Monthly reports provided to you by the community engineers compared the actual YTD against reforecast YTD totals.

4       Any significant variances between the ‘Actual’ and ‘Original budget’ totals are explained below. The details are provided in the attached annual report figures.

Significant variances to the annual budget

Income

5       Interest on reserves was $5k over budget due higher reserve balances.

6       A grant of $122k has been received from the Stewart Island Visitors for the replacement of Ulva Island Jetty this has been transferred to reserves.

Expenditure

7       Insurance and general maintenance came in $8k less than budgeted for the year.

Capital Expenditure

8       $5k work in progress for Millars beach was not budgeted in the year. At year end, Council was awaiting the Emtech report on the repairs required.

Schedule of loan balances

 

Balance
June 2016

Uplifted Loan

Principal Repayments

Balance June 2017

Years Remaining

Stewart Island Jetties

$47,376

-

$2,279

$45,097

13

 

Financial Contributions

Reserves

9        Interest has been allocated to the reserve accounts. Interest is calculated on the average balance of the reserves for the year at an interest rate of 3.27%. The budgeted interest rate was 4.19%.

Stewart Island Jetties

Schedule of Reserve Balance

 

Recommendation

That the Stewart Island Jetties Subcommittee:

a)            Receives the report titled “Financial Report to Stewart Island Jetties subcommittee for the year ended 30 June 2017” dated 25 October 2017.

 

 

Attachments

a             Stewart Island Jetties Annual Report figures for the year ended 30 June 2017    

 


Stewart Island Jetties Subcommittee

30 October 2017