Notice is hereby given that a Meeting of the Milford Community Trust will be held on:

 

Date:                            

Time:

Meeting Room:

Venue:

 

Wednesday, 26 February 2020

9.30am

Te Anau Library Meeting Room
24 Milford Road, Te Anau

 

Milford Community Trust Agenda

OPEN

 

 

MEMBERSHIP

 

Chairperson

Councillor Ebel Kremer

 

Trustees

Rosco Gaudin

 

 

Tim Holland

 

 

Brad Johnstone

 

 

Jason Steele

 

 

IN ATTENDANCE

 

Community Partnership Leader

Simon Moran

 

 

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

 

 

 


 


Milford Community Trust

26 February 2020

 

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

4.1         Milford Community Trust - Statement of Intent 2020-2023                                                     5

4.2         Half Year Financial Report to 31 December 2019                                                                             5

4.3         Financial Report to 31 January 2020                                                                                                       5

4.4         Department of Conservation Update

Ms Croft to provide an update on behalf of the department.

 

4.5         Chairperson's Report

The Chairperson, Councillor Kremer to report on matters with which he has been involved since the last meeting.

  


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

 

Trust 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

Meeting minutes of Milford Community Trust, 10 December 2019  


Milford Community Trust

26 February 2020

 

Milford Community Trust - Statement of Intent
2020-2023

Record No:             R/20/2/4303

Author:                      Simon Moran, Community Partnership Leader

Approved by:         Rex Capil, Group Manager Community and Futures

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        To obtain the Milford Community Trust’s approval of the Statement of Intent (SOI) and its subsequent reporting to Council and stakeholders.

Background

2        At its December meeting the trust considered a number of changes to its draft SOI for 2020 – 2023 and the document has been amended accordingly.

3        Following final approval from the trust, the SOI will be circulated and presented to Council and provided to the trust’s stakeholders.

Key Issues

4        The key issues that are signalled in the SOI are:

·    the future direction of the trust

·    decide whether or not it is feasible to proceed with the development of a recreation centre building

·    the trust has decided to make provision for a funding grant of up to $80,000 per year to assist with the provision of medical services in Milford Sound Piopiotahi.

 

Recommendation

That the Milford Community Trust:

a)            Receives the report titled “Milford Community Trust - Statement of Intent
2020-2023” dated 19 February 2020.

 

b)           Approves the Draft Statement of Intent 2020 – 2023 and provides a copy to Council and stakeholders.

 

 

Attachments

a             Milford Community Trust Statement of Intent 2020-2023    

 


Milford Community Trust

26 February 2020

 

 

 

 

 

MILFORD COMMUNITY TRUST

 

 

 

 

STATEMENT OF INTENT

2020 - 2023


Milford Community Trust

26 February 2020

 

STATEMENT OF INTENT

 

1.       Introduction

 

The Milford Community Trust was established in 2007 by the Southland District Council and the Department of Conservation with the assistance of Environment Southland for the purposes of providing leadership and governance for the Milford community.

 

The Trust Deed defines Milford as the developed area of land and adjacent coastal marine area at the end of State Highway 94 at the head of Milford Sound.  It defines the Milford community as being the residents of Milford, the holders of concessions from the Crown operating at Milford and Iwi.

 

The purpose of this Statement of Intent (SOI) is to:

 

§   Set out the proposed activities of the Trust.

§   Provide an opportunity for stakeholders to influence the direction of the organisation.

§   Provide a basis for accountability of the Trustees to their stakeholders for the performance of the organisation.

 

This Statement of Intent covers the three years from 1 July 2020 to 30 June 2023.  The statement is updated annually.

 

 

2.       Objectives of the Trust

 

The objectives of the Trust are:

 

(a)        To manage and carry out services and undertake leadership, planning and advocacy for the general benefit of the Milford community so as to ensure as far as possible that the infrastructure of the community and its sense of identity, viability and wellbeing are maintained and enhanced.

 

(b)        To liaise with and communicate with all individuals, organisations, groups and other parties with interests in the Milford community for all purposes which are beneficial to the community.

 

(c)        To represent the interests of the Milford community to ensure that the natural environments and outstanding values of the Milford Sound area are safeguarded and protected for all residents and visitors to the area. 

 

(d)        To monitor and maintain an overview of all activities and services provided within the Milford community. 

 

(e)        To consider and report on all matters either referred to and/or delegated to it from time to time by the Department of Conservation and the Southland District Council and on any matter of interest or concern to the Milford community. 

 


 

(f)        To access, use or invest funds and enter into arrangements, contracts and other agreements upon such securities or in such manner and upon such terms and conditions that the Trustees deem suitable for the purpose of furthering the objects and purposes of the Trust. 

 

(g)        To carry out such other lawful activities which are incidental or conducive to attaining the objects and purposes of the Trust. 

 

3.         Statement on the Trust’s Approach to Governance

 

Establishment

 

The Milford Community Trust was established in 2007 following a process of consultation with residents, agencies and businesses with interests in Milford in accordance with the special consultation process set out in the Local Government Act 2002.  The inaugural meeting of the Trust was held on 18 April 2007.

 

The Trust was incorporated under the Charitable Trusts Act 1957 on 18 May 2007.  The Charities Commission has approved the Trust as being exempt for tax purposes.

 

The Trust reports to the Southland District Council.

 

Trust Structure

 

In accordance with Section 9 of the Trust Deed, the Trust is governed by a board of seven Trustees.  Current representatives from stakeholder groups are shown in the table below:

 

Designation

Name

Term Expires

30 June

Mararoa-Waimea Ward Councillor, ex-officio appointment

Interim Chair

Ebel Kremer

 

Oct 2022

 

Dec 2021

Milford Community Association elected representative

 

Brad Johnstone

2020

Milford Community appointee

Tim Holland

2020

 

Milford Community appointee

Jason Steele

2022

 

Milford Community appointee

Rosco Gaudin

2023

 

Milford Community appointee

Vacant

 

 

 

Trust Operations

 

The Trust Deed sets out the way in which business of the Trust is to be conducted.  A strong driver is that the local Milford community should determine its own priorities and agree on the funding for these.  The Trust strives to regularly review its performance and to be open and accountable to the community through public meetings.  The Trustees also undertake to meet the regulatory and stakeholder requirements for governance, reporting and planning, particularly the local government reporting requirements and recognition of the National Park and World Heritage Area status of the Milford Sound Piopiotahi area.

Resources Available to the Trust

 

Standing Orders, a Code of Conduct for Trustees and administrative support are available from Southland District Council.

 

Significant Policies

 

Financial Delegations Policy

Suspected Fraud Policy

 

Where appropriate, further policy guidance is obtained from relevant council and other statutory authority policy and this will be reviewed as necessary.

 

4.         The Nature and Scope of the Activities to be Undertaken

 

Vision

 

The Trust’s vision is: 

 

The long-term sustainability of Milford Sound Piopiotahi, with a community focus.

 

Strategic Goals

 

The primary goals of the Trust are to:

§   Provide leadership and governance for the Milford community in Milford Sound Piopiotahi.

§   Advocate for the general benefit of the Milford community.

 

Within the over-arching vision and strategic goals, the more specific focus areas for
2020 – 2023 are:

 

Planning:

§   Determine the future direction of the Trust.

§   Advocating for better planning to address specific issues: highway safety, control of illegal camping, toilet facilities, community facilities, coordinated emergency response, and recognition of the area’s World Heritage status.

 

Communication:

§   Communicate the roles of the Trust and other authorities more clearly to the Milford community.

§   Affirm the Trust role as a voice for the Milford community.

§   Maintain relationships with Milford infrastructure providers.

§   Provide clear information to concessionaires regarding intentions and implementation of Trust policies.

§   Consult with the community and concessionaires to develop a strategic project plan for the Trust to deliver for the benefit of the community.

 

Advocacy:

 

§   Advocate, as required, on behalf of the Milford community to central government, Environment Southland, Department of Conservation, Southland District Council, Iwi and other authorities.

 

Planned Activities/Services

 

2020/21:

§ Advocate and assist with other organisations for strategic improvements in community planning in Milford Sound.

§ Provide funding for medical support services and facilities.

§ Review of the Trust and charging mechanism with stakeholders including concessionaires.

§ Facilitate the construction of the Milford recreation centre if the project gets approval.

§ Advocate the continuation of maintaining beautification and roading issues within the Village and Deepwater Basin.

§ Assist the Milford Community Association with the on-going development of the Cleddau Village Recreation Area to accommodate the community centre.   

 

2021/22:  

§ Advocate and assist with other organisations for strategic improvements in community planning in Milford Sound.

§ Provide funding for medical support services and facilities.

§ Advocate the continuation of maintaining beautification and roading within the village.

2022/23:

§ Advocate and assist with other organisations for strategic improvements in community planning in Milford Sound.

§ Provide funding for medical support services and facilities.

§ Advocate the continuation of maintaining beautification and roading within the village.

 

5.         Ratio of Total Assets:  Equity

 

Total assets are defined to include cash, investment and bank balances, accounts receivable, investments, prepayments, fixed assets (net of accumulated depreciation), intangible assets (net of accumulated amortisation), loans (none), etc. 

 

Total equity is defined to include accumulated funds and retained earnings. 

 

6.         Significant Accounting Policies

 

The following accounting policies have been adopted by the Trust.

 

 

 

Revenue Recognition

Concessionaires Fees

Revenue is recorded when the fee is due to be received.

Donated Assets

Revenue from donated assets is recognised upon receipt of the asset if the asset has a useful life of 12 months or more, and the value of the asset is readily obtainable and significant.

Interest

Interest revenue is recorded as it is earned during the year.

 

Debtors

Debtors are initially recorded at the amount owed. When it is likely the amount owed (or some portion) will not be collected, a provision for impairment and the loss is recorded as a bad debt expense. Debtors are shown as GST inclusive.

 

Bank Accounts and Cash

Bank accounts and cash comprise cash on hand, cheque or savings accounts, and deposits held at call with banks.

 

Term Deposits

Term Deposits with Banks are initially recorded at the amount paid. If it appears that the carrying amount of the investment will not be recovered, it is written down to the expected recoverable amount.

 

Creditors and Accrued Expenses

Creditors and accrued expenses are measured at the amount owed.

 

Property, Plant and Equipment

Property, plant and equipment is recorded at cost, less accumulated depreciation and impairment losses.

 

Donated assets are recognised upon receipt of the asset if the asset has a useful life of 12 months or more, and the value of the asset is readily obtainable and significant. Significant donated assets for which current values are not readily obtainable are not recognised.

 

For an asset to be sold, the asset is impaired if the market price for an equivalent asset falls below its carrying amount.

 

For an asset to be used by the Trust, the asset is impaired if the value to the Trust in using the asset falls below the carrying amount of the asset.

 

Depreciation is provided on a straight line basis that will write off the cost of the assets over their useful lives. This is calculated using the following rates:

 

Recreational Pad           3%    Diminishing Line

Buildings                       2%   Straight Line

Income Tax

The Trust is exempt from income tax as it is a Charitable Trust registered with the Charities Commission.

 

Loans

Loans are recognised at the amount borrowed from the lender, less any repayments made.

 

Budget Figures

The budget figures are derived from the Statement of Intent as approved by the Trustees at the beginning of the financial year.  The budget figures have been prepared in accordance with tier 3 standards, using accounting policies that are consistent with those adopted by the Trustees in preparing these financial statements.

 

7.         Key Performance Targets

 

These are agreed through the Long Term Plan (LTP) public consultation process undertaken by the Southland District Council.  These targets can be changed only through a formal review of the LTP.

 

Level of service

Key performance indicator

Actual

Target

Confirmation

source

18/19

19/20

20/21

21/22

Maintain a structure that facilitates local decision making.

Number of Milford Community Trust meetings held annually.

4

4

4

4

Agenda/minute records on file.

Keep the Milford community informed about Trust plans and outcomes.

Hold public forums in Milford each year.

1

1

1

1

Agenda/minute records on file which note meeting location

 

8.         Information to be reported to Council

 

In each year the Trust will comply with all reporting requirements under the Local Government Act 2002 (particularly Sections 66 to 69 of that Act).  In particular, it will provide: 

 

§   A draft Statement of Intent detailing all matters required under the Local Government Act 2002 by 1 March each year for consideration prior to commencement of the new financial year.

 

§   A half yearly report by the end of February each year (specific dates as set by Council).

 

§   An annual report by the end of September each year (specific dates as set by Council).

 

Copies of the Trust’s reports are forwarded to the other major stakeholder authorities, being the Southland District Council, Department of Conservation and Environment Southland.

 

 

9.         Key Issues

 

·    The future direction of the Trust

·    Decide whether or not it is feasible to proceed with the development of a recreation centre building.

·    The Trust has decided to make provision for a funding grant of up to $80,000 per year to assist with the provision of Medical Services in Milford Sound Piopiotahi.

 

10.        Activities for which Other Investment is sought

 

The value of the annual concession to be charged will continue to be reviewed each year.  For 2020/2021, the total amount being sought from concessionaires is $150,583 excluding GST.  Any surplus funds will be held by the Trust in its bank account for future project funding.

 

Included within the Forecast Expenditure of the Trust is Management and Administration costs of $34,113.

 

The operational and project costs are those which the Milford Community Trust considers will provide benefit for all concessionaires at Milford and should be recovered from the Milford concessionaires through the Implied Concession Activity Fee, apportioned as per the Department of Conservation apportionment of cost schedule.  The costs indicated above in the supporting forecasted accounts are funded from the annual implied concession activity fee and monies held.

 

Future budgeted costs are indicative only and will be reviewed annually by the Trustees.

 

Other Project Funding:

 

In addition to the above operational and project costs, there are also costs associated with other significant projects that fall either directly or indirectly under the influence of the Milford Community Trust but have all or a majority of proposed funding through means other than apportioned implied concessionaires fees.  There may also be a portion of public good associated with these projects.

 

In this Statement of Intent the Trustees are seeking to borrow to fund the anticipated shortfall of the cost to build the recreation centre. The shortfall is expected to be no more than $300,000, and will be repaid over five years, commencing from 1 July 2021. Based on the current and forecast financial position of the Trust, the financials included in this Statement of Intent have been prepared on the assumption that $200,000 will be borrowed, at an interest rate of 4.65% per annum.

 

In accordance with sections 3.3 and 3.4 of Southland District Council Investment and Liability Management Policy, Milford Community Trust has the ability to approach Southland District Council to borrow funds.

 

11.        Estimate of Value of Stakeholders Investment

 

The net value of the stakeholders’ investment in the Trust is estimated to be valued at $100.  This value shall be reassessed by the Trustees on completion of the annual accounts or at any other time determined by the Trustees.  The method of assessment will use the value of stakeholders’ funds as determined in the annual accounts as a guide.

 

12.        Other Matters

 

No distribution is intended within the period of the Statement or succeeding years, noting the Trust’s status as a charitable organisation.

 

Any subscription for, purchase or otherwise acquiring shares in any company or other organisation requires the prior approval of the Trustees.


 

 

 

 

 

 


Milford Community Trust

26 February 2020

 

Half Year Financial Report to 31 December 2019

Record No:             R/20/2/4304

Author:                      Simon Moran, Community Partnership Leader

Approved by:         Rex Capil, Group Manager Community and Futures

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        The purpose of this report is to present the half yearly financial report for the period ending 31 December 2019 for the Trustees information.

2        As at 31 December 2019 there has been minimal expenditure. The Trust continues to be in a strong financial position with a significant amount of cash invested in term deposits, awaiting the progression of the community centre project.

 


 

 

Recommendation

That the Milford Community Trust:

a)            Receives the report titled “Half Year Financial Report to 31 December 2019” dated 19 February 2020.

 

b)           Approves the half yearly report for the six month period to 31 December 2019, and recommends that the report be submitted to the Southland District Council for information purposes and subsequently distributed to the Trust’s stakeholders.

 

 

Attachments

There are no attachments for this report.  

 


Milford Community Trust

26 February 2020

 

Financial Report to 31 January 2020

Record No:             R/20/2/4305

Author:                      Brie Lepper, Graduate Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        This financial report provides the Trustees with a statement of financial performance and financial position of the Trust for the period 1 July 2019 to 31 January 2020.

 

Commentary

Financial Performance

2        The concessionaire’s income represents the first three quarters. The third quarter invoicing was completed in January with payments expected to be received by 20 February 2020.

3        The majority of expenses to date relate to chairman fees, trustee fees, legal fees and insurance.  Legal fees relate to costs associated with discussions around the trust deed.  Insurance costs are for the placement of the following policies for the period 1 July 2019 to 30 June 2020: trustees liability, statutory liability and public liability insurance.

Financial Position

4        The Milford Community Trust (MCT) continues to have a strong cash position. $22,571 is held in the cheque/savings accounts, the savings account receives interest at a rate of 0.1% p.a. Surplus funds are invested as appropriate, on a regular basis. Additionally, $360,000 is currently invested in term deposits as outlined in the table below:

Bank

Amount

Interest Rate

Term

Maturity Date

Total Expected Interest

BNZ

$120,000

3.18%

215 Days

24/02/2020

$2,248

BNZ

$80,000

3.12%

271 Days

09/03/2020

$1,853

BNZ

$50,000

2.63%

186 Days

28/04/2020

$670

BNZ

$50,000

2.60%

152 Days

11/05/2020

$541

BNZ

$60,000

2.80%

213 Days

26/06/2020

$856

Total:

$360,000

 

 

 

$6,169

 

Concessionaries Contributions

5        As you are aware we have been indicating for a number of months the Trust’s intention to update the data used to calculate the concessionaire contribution percentage. The data required is passenger numbers, staff bedrooms, staff numbers, square meterage and improvement value. At this time as we are still awaiting information from DOC, therefore we have issued the third quarter concessionaire invoices using the same percentages as 2018/2019.

6       

 

Recommendation

That the Milford Community Trust:

a)            Receives the report titled “Financial Report to 31 January 2020” dated 19 February 2020.

 

Attachments

There are no attachments for this report.