Notice is hereby given that a Meeting of the Five Rivers Water Supply Subcommittee will be held on:

 

Date:

Time:

Venue:

 

Wednesday, 14 November 2018

5pm

Mrs J Andrews

94 Andrews Road

Five Rivers

 

Five Rivers Water Supply Subcommittee Agenda

OPEN

 

 

MEMBERSHIP

 

Members

Joan Andrews

 

 

Ross Andrews

 

 

Allan Baird

 

 

Lindsay Baird

 

 

Matt Baldwin

 

 

David Dodunski

 

 

Barbara McNamee

 

 

Pat McNamee

 

 

David Nind

 

 

Councillor John Douglas

 

 

IN ATTENDANCE

 

Committee Advisor/Customer Support Partner

Operations Manager- Water & Waste Services

Rose Knowles

Bill Witham

 

 

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

 

 

 


Terms of Reference – Water Supply Subcommittees

Te Anau Basin, Five Rivers and Matuku

 

The activity of the Southland District Council’s Water Supply Subcommittees is framed by Southland District Council policies and plans.  The responsibilities of these Water Supply Subcommittees include: 

·                Providing feedback to Council officers on relevant plans and strategies (including Asset Management Plans).

·                Receiving operational and financial reports.

·                Community engagement and representing community views to Council.

 

 

The Te Anau Basin, Matuku and Five Rivers Water Supply Subcommittees shall have the following delegated powers and be accountable to Council for the exercising of these powers:

 

(a)            Power to recommend the annual budget relating to the relevant water supply scheme.

(b)           Power to approve expenditure outside Council's authorised officer levels but within the budget of the water supply schemes.  All decisions to approve expenditure outside Council’s authorised officer levels must be made by way of a resolution at a meeting of the Water Supply Subcommittees.  Any such decisions must be reflected in the minutes of the meeting. 

(c)            Power to approve new connections to the relevant water supply scheme.

(d)           Power to approve expenditure outside of the relevant annual budget for emergency works. 

(e)           Policies relating to water schemes;

 

In addition to the power to approve expenditure outside of the relevant annual budget for emergency works, this Subcommittee can also recommend unbudgeted expenditure to Council for approval.

 


Five Rivers Water Supply Subcommittee

14 November 2018

 

TABLE OF CONTENTS

ITEM                                                                                                                                                                                  PAGE

Procedural

1             Apologies                                                                                                                                                                4

2             Leave of absence                                                                                                                                                4

3             Conflict of Interest                                                                                                                                             4

4             Public Forum                                                                                                                                                         4

5             Extraordinary/Urgent Items                                                                                                                        4

6             Confirmation of Minutes                                                                                                                               4

Reports

7.1         Financial Report for the year ended 30 June 2018                                                                       11

7.2         Direction-setting for Annual Plan 2019/2020                                                                                 15

   


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

 

Subcommittee 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 Five Rivers Water Supply Subcommittee, 17 October 2017


 

Five Rivers Water Supply Subcommittee

 

OPEN MINUTES

 

 

 

Minutes of a meeting of Five Rivers Water Supply Subcommittee held in the Mrs J Andrews residence, Andrews Road, Five Rivers, on Tuesday, 17 October 2017 at 4.30pm.

 

present

 

Chairperson

Joan Andrews

 

Members

Ross Andrews

 

 

Matt Baldwin

 

 

Barbara McNamee

 

 

Pat McNamee

 

 

David Nind

 

 

Councillor John Douglas

 

 

IN ATTENDANCE

 

Committee Advisor - Rose Knowles

Project Engineer, Water & Waste Services – Bill Witham

 


1             Apologies

 

There were no apologies received.

 

 

2             Leave of absence

 

There were no requests for leave of absence.

 

 

3             Conflict of Interest

 

There were no conflicts of interest declared.

 

 

4             Public Forum

 

There was no public forum.

 

 

5             Extraordinary/Urgent Items

 

There were no Extraordinary/Urgent items.

 

 

6             Confirmation of Minutes

Resolution

Moved Member P McNamee, seconded Member Nind and resolved:

That the minutes of Five Rivers Water Supply Subcommittee meeting held on 5 December 2016 be confirmed as a true and correct record.

 


 

 

Reports

 

 

7.1

Financial Report Five Rivers Water Supply for the year ended 30 June 2017

Record No: R/17/9/21455

 

Bill Witham, Project Manager Water & Waste Services presented the report.

Mr Witham advised that the report was to update Members on the financial report for the Five Rivers Water Supply to the year ended 30 June 2017.

 

Resolution

Moved Member Andrews, seconded Member Nind and resolved:

That the Five Rivers Water Supply Subcommittee:

a)            Receives the report titled “Financial Report Five Rivers Water Supply for the year ended 30 June 2017” dated 6 October 2017.

 

 

7.2

Local Budgets for the Long Term Plan 2018-28

Record No: R/17/10/23642

 

Bill Witham, Project Manager Water & Waste Services, presented the report.

Mr Witham advised the purpose of the report is to set local budgets for 2018-28 and propose rates for the year commencing 1 July 2018.

 

Mr Witham explained this report provides an overview of the local activities and services for Balfour for 2018-2028 which are provided under the governance of the Five Rivers Water Supply subcommittee.  The report details the estimated costs of these activities over the 10 years as well as the draft rates.

 

Mr Witham informed 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).

 

Mr Witham advised 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 officers have prepared.  The AMPs contain more detail about the activities and expenditure requirements.

 

Mr Witham had a discussion with the Members on the Consent Process, costs and the important of continuing to read the water take metre.

 

 

 

 

Resolution

Moved Member P McNamee, seconded Member R Andrews and resolved:

That the Five Rivers Water Supply Subcommittee:

a)            Receives the report titled “Local Budgets for the Long Term Plan 2018-28” dated 6 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)           Recommends to Council that the budgets for the years 1 July 2018 to 30 June 2028 be included in the 2018-2028 Long Term Plan.

 

 

7.3

Strategic Framework 2018 - 2028 Long Term Plan

Record No: R/17/9/23131

 

Councillor Douglas presented the report.

Councillor Douglas advised the purpose of this report is to update Community Development Area Subcommittees on the revised Strategic Framework that has been developed by Council for the 2018-2018 Long Term Plan.

Councillor Douglas explained the report presents the framework for information and highlights the key changes to the Council’s intended areas of focus in response to the key strategic challenges facing Southland District over the next twenty years.

 

Resolution

Moved Member B McNamee, seconded Member Nind and resolved:

That the Five Rivers Water Supply Subcommittee:

a)            Receives the report titled “Strategic Framework 2018 - 2028 Long Term Plan” dated 5 October 2017.

 

The meeting concluded at 5.35pm.                      CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Five Rivers Water Supply Subcommittee HELD ON 17 OCTOBER 2017.

 

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

 

 

 

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

 


Five Rivers Water Supply Subcommittee

14 November 2018

 

Financial Report for the year ended 30 June 2018

Record No:             R/18/8/20073

Author:                      Bill Witham, Operations Manager - Water and Waste Services

Approved by:         Matt Russell, Group Manager Services and Assets

 

  Decision                                        Recommendation                                  Information

 

 

 

1        Audit NZ completed its review of Council’s finances in September, with Council approving the 2017-18 Annual Report in late September.  As such this report represents the final results for the Water Supply subcommittee 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 2018/2019 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        General Recoveries was $12,235 under budget as funding due to the resource consent project being completed by council staff rather than consultants. This means that the project was completed under budget.

Expenditure

6        Operating expenditure for resource consents and depreciation were lower than was estimated for the year.

Capital Expenditure

7        The renewal of the water take resource consent was completed significantly under budget.
The budget for this project was based on using external consultants for the work, however it was completed by Council staff.

Project List

8       Community projects that were budgeted to be undertaken in the 2017/2018 year are in the table below.

Project Name

Financial Year

AP Budget

Actual cost

Status

Officer’s Comment

Resource Consent Project

2017/2018

16,859

5,702

Completed

Resource consent application completed under budget.

 

 

Recommendation

That the Five Rivers Water Supply Subcommittee:

a)            Receives the report titled “Financial Report for the year ended 30 June 2018” dated 5 November 2018.

 

Attachments

a             Five Rivers Water Supply Annual Report figures for the year ended 30 June 2018    

 


Five Rivers Water Supply Subcommittee

14 November 2018

 


Five Rivers Water Supply Subcommittee

14 November 2018

 

Direction-setting for Annual Plan 2019/2020

Record No:             R/18/10/24745

Author:                      Chantelle Subritzky, Corporate Performance Lead

Approved by:         Rex Capil, Group Manager Community and Futures

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        The purpose of this report is to confirm the direction determined for the 2nd year of the LTP.

2        This report provides an overview of the forecasted projects and services for the Five Rivers Water Supply Subcommittee in 2019/2020.  It includes any variations from what was anticipated in year two of the Long Term Plan 2018-2028 (“LTP”).   

Executive Summary

3        The direction-setting provided by the Five Rivers Water Supply Subcommittee will be incorporated into the Council’s Draft Annual Plan for 2019/2020.  If consultation is required, this will occur in February 2019 and March 2019. 

4        Once the plan is finalised (and subject to any changes resulting from submissions), the direction given for 2019/2020 will be used to set rates for the year beginning 1 July 2019.

5        It is recognised that extraordinary projects or changes to the level of service may be needed outside of the LTP process.  The Annual Plan process is an opportunity to raise these extraordinary projects or events, to ensure the on-going needs of the community are being met.

6        Council has streamlined its 2019/2020 Annual Plan process, and all extraordinary projects for the local area that were received by Council in the project plan template prior to 21 September have been included in the 2019/2020 Annual Plan.

7        The Five Rivers Water Supply Subcommittee have no variances identified for year two of the LTP.

8        Staff recommend Option 1 to accept the budgets as proposed in this report.

9        Following the recommendations made to Council, any variances will be summarised in Council’s Draft 2019/2020 Annual Plan.  If there are significant or materially different variances from the LTP, these will be included in a consultation document and released for consultation in February 2019. 

10      The final Annual Plan including changes made as a result of consultation, will be adopted by Council in June 2019.

 

 

1                Recommendation

That the Five Rivers Water Supply Subcommittee:

a)            Receives the report titled “Direction-setting for Annual Plan 2019/2020” dated 5 November 2018.

 

b)           Determines that this matter or decision be recognised 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)           Agrees to the budgets for the year commencing 1 July 2019 be adopted for inclusion in the Council’s Draft 2019/2020 Annual Plan (subject to any minor amendments made at this meeting).

 

 

Background

11      The Annual Plan process ensures that planned community projects and rates align with the Long Term Plan (LTP) strategic vision. The LTP community outcomes for Southland district are:

·    proud, connected communities that have an attractive and affordable lifestyle

·    resilient communities that leave a legacy for tomorrow

12      The purpose of this report is to confirm the direction determined for the 2nd year of the LTP. 

13      It is recognised that extraordinary projects or changes to the level of service may be needed outside of the LTP process.  The Annual Plan is an opportunity to raise these extraordinary projects or events, to ensure the on-going needs of the community are being met.

14      The draft budgets for the Te Anau Basin Water Supply Subcommittee for 2019/2020 have been based on forecasted information from year two of the Long Term Plan 2018-2028.


 

Overview of the process:

 

Issues

15      There are no significant changes from what was originally included in year two of the LTP.

Factors to Consider

Legal and Statutory Requirements

16      The Annual Plan 2019/2020 is a requirement of the Local Government Act 2002 and is also closely aligned with the Local Government (2002) Rating Act.

Community Views

17      Any significant issues affecting local communities may be included in the official consultation document which will be publicly available.  The consultation document will be available to households throughout the District.

18      Consideration should be given to if all or some of the additional costs or projects could be funded from reserves or loans. 

Assumptions made in preparing the Budgets

19      All assumptions that were made when preparing the LTP have been applied in these budgets including the interest rate on borrowings.  The interest rate applicable to community borrowings has been held consistent with the 2018-2028 LTP at 4.65%.  This interest rate is based on the average BNZ three year fixed interest rate at the time of setting the LTP assumptions.   

20      Interest on community reserves (monies held on reserve by the community for various purposes) has been calculated at 3.29% on the average of these balances at year end and is consistent with the 2018-2028 LTP.   

21      Inflation rates have also been kept consistent with BERL rates adopted in the 2018-2028 LTP.

Fees and Charges

22      As part of the 2019/2020 Annual Plan process, Council are required to set all Council related fees and charges.

23      Council has a legislative requirement to publish all fees and charges imposed by Council or Council committees.  This is achieved by way of Council’s annual Fees and Charges booklet. The Fees and Charges booklet is a single document where ratepayers and Council staff can locate all charges in one place for the relevant financial year.  The 2019/2020 Fees and Charges booklet is currently being prepared and will take effect from 1 July 2019.

Policy Implications

24      There are no policy implications in the direction setting for the Annual Plan 2019/2020.

Analysis

Options Considered

25      Council staff have reviewed the original LTP outcomes and revised as necessary.

26      There are two options to be considered in this report:

·    option 1 is to accept the budgets as proposed in this report

·    option 2 is to amend the budgets proposed in this report.


 

Analysis of Options

Option 1 – Accept the budgets as proposed in this report

Advantages

Disadvantages

·        ensures that community outcomes are met

·        enables an Annual Plan to be compiled in with in the set timeframe.

·        the cost and associated funding for preparing and consulting on the 2019/2020 Annual Plan are included in the organisations approved operational budgets.

·        none identified

 

Option 2 – Amend the budgets proposed in this report

Advantages

Disadvantages

·        allows for any amendments that staff may not have factored in.

·        rates recalculations may be higher than identified in the LTP.

·        may impact the delivery of the Annual Plan within the set timeframe.

 

Assessment of Significance

27      The contents of this report is not deemed significant under the Significance and Engagement Policy.

Recommended Option

28      Through the process of identifying any extraordinary projects/events, and updating any changes to the level of service required, staff recommend Option 1 to accept the budgets as proposed in this report.

Next Steps

29      The recommendations passed in this report will be summarised in Council’s Draft 2019/2020 Annual Plan.  If there are significant or materially different variances from the LTP, these will be included in a consultation document and released for consultation in February 2019. 

30      The final Annual Plan including changes made as a result of consultation, will be adopted by Council in June 2019.

31      This report has the following appendices:

32      Appendix 1: This section is the financial summary statement which shows the expenditure and income.

 

Attachments

There are no attachments for this report.