Notice is hereby given that an Ordinary Meeting of Southland District Winton Wallacetown Ward Committee will be held on:

 

Date:                            

Time:

Meeting Room:

Venue:

 

Wednesday, 18 October 2017

4pm

Council Chambers
15 Forth Street
Invercargill

 

Winton Wallacetown Ward Committee Agenda

OPEN

 

MEMBERSHIP

 

 

Mayor Gary Tong

 

Councillors

Darren Frazer

 

 

Gavin Macpherson

 

 

Neil Paterson

 

 

 

 

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

 

 

 


 


Winton Wallacetown Ward Committee

18 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 - Policy and Strategy

7.1         Local Budgets for the Long Term Plan 2018-28                                                                                7

Reports - Operational Matters

8.1         Financial Report to Winton Wallacetown Ward for the year ended 30 June 2017    21   

Public Excluded

There is no public excluded business.

 


Winton Wallacetown Ward Committee

18 October 2017

 

1             Apologies

 

At the close of the agenda no apologies had been received.

 

2             Leave of absence

 

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

 

3             Conflict of Interest

 

Councillors are reminded of the need to be vigilant to stand aside from decision-making when a conflict arises between their role as a councillor 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 Council 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

                There are no minutes to confirm.

 


Winton Wallacetown Ward Committee

18 October 2017

 

Local Budgets for the Long Term Plan 2018-28

Record No:             R/17/10/24566

Author:                      Kate Westenra, Finance Assistant

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 Winton Wallacetown Ward for 2018-2028 which are provided under the governance of the Winton Wallacetown Ward committee.  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 officers and the committee along with Activity Management Plans (AMPs) that officers have prepared.  The AMPs contain more detail about the activities and expenditure requirements.

 

Recommendation

That the Winton Wallacetown Ward Committee:

a)            Receives the report titled “Local Budgets for the Long Term Plan 2018-28” dated 13 October 2017.

 

b)           Determines that this matter or decision 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)           Recommends to Council that the following rates and charges (including GST) for the year commencing 1 July 2018 be included in the 2018-2028 Long Term Plan.

Rate

Rate GST inclusive

Winton Wallacetown Ward Rate

$90,963

 

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 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

Issues

Local Budget Development

9        The draft budgets for the Winton Wallacetown Ward for 2018-2028 have been prepared.  Figures for these budgets have flowed out of the review of AMPs as well as discussions between officers and the committee over the past few months.

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

11      If approved by Council via the LTP, the committee will be able to spend the Council funds allocated in accordance with the budgeted expenditure.  This occurs via Council officers approving purchase orders.  If the committee wishes to spend funds that are unbudgeted, including monies from reserves, the committee have a delegation to approve up to $10,000 otherwise the decision will need Council approval. 

12      In preparation for the 2018-2028 LTP, Council officers are reviewing and updating Council’s various 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 LTP consultation period.

Local Community Issues

13      The reason for the decrease is that the contribution to the towns has decreased due to decrease in their budgets.

14      As per prior years $5,000 is being drawn down from reserves to offset rates.  Councillors may wish to consider if this is still appropriate.

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

(A)    Overview

This section includes details of the proposed rates for the Winton Wallacetown Ward (compared to the previous year).  The section also includes an overview of reserves and loans.

(B)    Rate Type Financial Information and Activity Summary

          This section is organised by rate type and is broken into four subparts:

i.     This part contains a graph showing income and expenditure projected over the 10 years.

ii.    This part contains a summary of the financial budgets.  It shows the expenditure and income projected over the 10 years, the amount of rates required and the rate calculation summary.

iii.   This part shows the business unit costs making up income and expenditure for the rate type.  This financial information reconciles with the rate type financial summary mentioned above (ii).

 (C)   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 of every reserve the ward has for each of the 10 years.

Factors to Consider

Legal and Statutory Requirements

16      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. 

17      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

18      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.

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

20      The committee 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 ward or let the ward community know of any significant projects.

21      Any submissions received from the public on local issues will be forwarded to the relevant community partnership leader (and 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

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

Assumptions

23      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 community projects, it is assumed that these loans will be obtained internally in the first instance.

Policy Implications

24      The report is a summary of plans prepared in respect to all of the services the committee intend to provide in the Winton Wallacetown Ward 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

25      The community partnership leader has discussed with the subcommittee the projects to be included in the LTP and the remaining budgets have been reviewed and updated by the community engineer.


 

Analysis of Options

Option 1 – Accept the estimates as proposed in this report

Advantages

Disadvantages

·        Enables the LTP 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 LTP budgets.

·        Rates requirement may need to be recalculated.

·        May impact the delivery of the LTP within the set timeframe.

 

Assessment of Significance

26      The decision to be made by the committee is not likely to be a significant decision on its own under the Council’s Significance and Engagement Policy.  However, the LTP (into which the committee’s budgets are incorporated) is considered significant and will be consulted on in March/April 2018.

Recommended Option

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

Next Steps

28      The draft 10 year budgets and rating information for 2018-28 for the Winton Wallacetown Ward will be included in the draft LTP financial information for confirmation by Council in February 2018 and consultation through March-April 2018.

 

Attachments

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

 


Winton Wallacetown Ward Committee

18 October 2017

 

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Winton Wallacetown Ward Committee

18 October 2017

 

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Winton Wallacetown Ward Committee

18 October 2017

 

Financial Report to Winton Wallacetown Ward for the year ended 30 June 2017

Record No:             R/17/10/24395

Author:                      Kate Westenra, Finance Assistant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

1        Audit NZ completed its review of Councils finances in September, with Council approving the 2016-17 Annual Report in late September.  As such this report represents the final results for the ward for the year. .

Community financial performance for the year

2        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.

3        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.

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 received on reserves is less than budgeted due to a decrease in the actual interest rate (3.27%) compared to the budgeted interest rate (4.19%).

Expenditure

6        The overall expenditure was $54K under budget principally due to the General Projects budget of $59K being under spent. Included in the General Projects budget was $50K towards the Winton Memorial Hall upgrade. This transfer has been actioned in the 2017/18 financial year.

7        In internal grant expense is $5K which was transferred to Winton parks and reserves for the skate park project, this was an error which has been corrected in the 2017/18 financial year.

Capital Expenditure

8        There was no capital expenditure during the year.

Schedule of Reserve Breakdown

Wards

Balance

30/06/16

Transfer to/(From)

Balance

30/06/17

Comments

Wallacetown

$59,129

($590)

$58,539

Anzac day Catering

Winton

$396,037

($21,915)

$374,122

$17.8K Winton Skate park

$1.6K Gore Kids Hub grant

$1.1K Kauana history board

Winton Wallacetown

$15,384

$12,954

$28,338

Business unit balancing

Total

$470,551

($9,552)

$460,999

 

9        Please note that the ward reserves were consolidated as a result of the representation review on
1 July 2014. At this time it was decided that the decision around the spending of each reserve would be combined from 1 July 2017. This means that all disbursements from the combined ward reserve will require joint approval from the Councillors.

 

Financial Considerations

Development and Financial Contributions

10      Contributions are collected to fund community growth projects. The use of these funds are considered by Council staff when projects are in the planning stage. Certain policy and legislative requirements must be met before these contributions can be applied to projects.

11      The total balance of Development and Financial contributions for your community as at
30 June 2017 is in the table below. 

 

Ward

Parks

Winton

$5,107

Winton Wallacetown

$11,308

Reserves

12      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%.

 

Winton Wallacetown Ward

Schedule of Reserve Balance

 

 

Recommendation

That the Winton Wallacetown Ward Committee:

a)            Receives the report titled “Financial Report to Winton Wallacetown Ward for the year ended 30 June 2017” dated 13 October 2017.

 

 

Attachments

a             Winton Wallacetown Annual Report figures for the year ended 30 June 2017    

 


Winton Wallacetown Ward Committee

18 October 2017

 

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