Notice is hereby given that an Ordinary Meeting of Southland District Council will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Thursday, 7 May 2020

9am

Council Chamber
15 Forth Street
Invercargill

 

Council Agenda

OPEN

 

MEMBERSHIP

 

Mayor

Mayor Gary Tong

 

Deputy Mayor

Ebel Kremer

 

Councillors

Don Byars

 

 

John Douglas

 

 

Paul Duffy

 

 

Bruce Ford

 

 

Darren Frazer

 

 

George Harpur

 

 

Julie Keast

 

 

Christine Menzies

 

 

Karyn Owen

 

 

Margie Ruddenklau

 

 

Rob Scott

 

 

IN ATTENDANCE

 

Chief Executive

Steve Ruru

Committee Advisor

Fiona Dunlop

 

 

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

 

 


 


Council

07 May 2020

 

TABLE OF CONTENTS

ITEM                                                                                                                                                                                  PAGE

Procedural

1             Apologies                                                                                                                                                                7

2             Leave of absence                                                                                                                                                7

3             Conflict of Interest                                                                                                                                             7

4             Public Forum                                                                                                                                                         7

5             Extraordinary/Urgent Items                                                                                                                        7

6             Confirmation of Council Minutes                                                                                                             7

Reports - Policy and Strategy

Nil

Reports - Operational Matters

8.1         Unbudgeted Expenditure - Rural Water Flow Meters                                                                  9

8.2         Unbudgeted Expenditure Request - Solar Power Unit for Takitimu Reservoir          15

8.3         Unbudgeted Expenditure - Car Park, Wallacetown Cemetery                                              21

8.4         Forecasted Financial Position for the year ending 30 June 2020                                        25

Reports - Governance

9.1         Milford Community Trust - Statement of Intent 2020-2023                                                   43

9.2         Milford Community Trust - Half Yearly Report                                                                              59   

Public Excluded

Procedural motion to exclude the public                                                                                                         65

C10.1    Te Anau Wastewater Upgrade Update and Request for Unbudgeted Expenditure

C10.2    Te Anau Wastewater Upgrade – Recommendation to Award Membrane Filtration Plant Contract (19/46)

C10.3    Te Anau Wastewater Upgrade – Recommendation to Award Contract for Kepler Dripline Installation  


Council

07 May 2020

 

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 Council Minutes

6.1             Meeting minutes of Council, 22 April 2020


Council

7 May 2020

 

Unbudgeted Expenditure - Rural Water Flow Meters

Record No:             R/20/3/6797

Author:                      Joe Findley, Projects Manager

Approved by:         Matt Russell, Group Manager Services and Assets

 

  Decision                                       Recommendation                                 Information

 

 

 

Purpose

1        The purpose of this report is to seek approval from Council for the unbudgeted expenditure required to install Magflo style water meters at three rural water schemes to comply with Environment Southland consent requirements.

Executive Summary

2        The Kakapo, Homestead and Princhester Rural Water Schemes currently have mechanical water meters which require replacement due to wear.  Environment Southland now requires Southland District Council (SDC) to undertake verification testing of compliance water meters and due to the lower ongoing maintenance and compliance costs, staff recommend replacing the mechanical meters with Magflo type meters.

 

Recommendation

That the Council:

a)            Receives the report titled “Unbudgeted Expenditure - Rural Water Flow Meters” dated 1 May 2020.

 

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)           Approves the unbudgeted expenditure of $29,194.00 to undertake the installation and upgrading of the worn water meters at Homestead, Princhester and Kakapo Rural Water Schemes to new Magflo type meters.

 

e)            Approves the unbudgeted expenditure amount of $29,194.00 excluding GST, for the installation of Magflo type meters, to be funded by a 30 year loan, from the Te Anau Rural Water Supply rate.

 

 

Background

3        The rural water schemes in the Te Anau Basin were installed during the 1970’s and adopted into Council ownership during the late 1990’s.

4        Council holds a water take consent from Environment Southland for each of its Rural Water Schemes, including the Homestead, Kakapo and Princhester schemes. As a condition of each consent, Environment Southland now requires Council to undertake independent calibration testing of the water meters to ensure compliance with the consents.

5        Recent testing has showed that the mechanical meters in service are inaccurate, indicating wear, creating a compliance issue for Council in breach of the resource consent conditions.  Repairing the meters is not a viable option, so replacement or upgrading are being considered.

Issues

6          Testing of the existing meters has shown that the remaining three mechanical meters on the Te Anau Basin Rural Water Schemes are inaccurate and need to be replaced. The inaccuracy of the meters creates a compliance issue for Council, effectively being in breach of the resource consent conditions.

7          Council engineers are recommending upgrading to Magflo style meters rather than replacing with like for like mechanical meters. It is considered that mechanical meters are no longer appropriate for these installations due to the increasing accuracy requirements demanded of the consent conditions and the verification interval of mechanical meters being five times that of a Magflo meter, which carries a significant cost.

Factors to Consider

Legal and Statutory Requirements

8        All of the Te Anau Basin rural water supplies have water abstraction consents from Environment Southland.  A condition of each consent is to accurately measure and report the volumes of water taken.

9        The Regional Council has recently made independent water meter calibration testing a condition of the water abstraction consents.

10      The requirement applies to mechanical meters yearly and Magflo type meters five yearly.

Community Views

11      Council staff have discussed this proposal with the Te Anau Basin Water Supply Sub-committee Chair, who has subsequently spoken to other sub-committee members. The Te Anau Basin Water Supply sub-Committee are in agreement that this work needs to be done. Due to the current lockdown situation, the sub-Committee have not had a formal meeting to approve this works however.

Costs and Funding

12      The upgrade work, for installation of Magflo meters at the three sites, has been quoted at $29,194.00 excluding GST, for Kakapo, Homestead and Princhester. Much of the electronics required for the meter upgrade have already been installed in the last switchboard upgrade project. 

13      The option of replacing the mechanical meters with new mechanical meters has not been fully estimated but would be approximately $4,500.00 excluding GST. It is important to note that mechanical meters would have to be replaced more often than Magflo type meters due to loss of required accuracy as they wear.

14      The cost of the annual independent testing is around $800.00 per site (as at December 2019). This is required yearly for mechanical style meters and five yearly for Magflo style meters, meaning that the Committee can expect to pay $12,000.00 over five years to have mechanical meters verified at these three sites, versus $2,400.00 over five years for verification of the Magflo meters. As with most things, the cost of this verification may increase over time.

15      Funding the $29,154.00 through a 30 year loan, results in an additional rates required of $1,807.00 (excluding GST) per annum in 2019/2020 to 2021/2020. This will have a flow on effect on rates spread across the ratepayers of all schemes.

Policy Implications

Analysis

Options Considered

16      The following options have been identified and considered as outlined in Options 1 and 2 below;

Analysis of Options

Option 1 – Replacement of the existing meters with similar mechanical meters, estimated at around $4,500.00 excluding GST

Advantages

Disadvantages

·        Lower initial purchase price

·        More prone to wear, accelerated by grit in the water, hence a shorter life expectancy of each meter

·        Yearly calibration testing required at $800.00 per site (as at Dec-2019)

·        Shorter serviceable life

 

Option 2 – Upgrade of the existing meters with Magflo type meters, quoted at $29,194.00 excluding GST

Advantages

Disadvantages

·        Five yearly calibration testing required at $800.00 per site (as at Dec-2019)

·        No moving parts, less prone to wear

·        Longer serviceable life

·        Higher initial purchase price

 

Option 3 – No third option has been considered as part of this report

Advantages

Disadvantages

·        Nil

·        Nil

 

Assessment of Significance

17      The proposed recommendations are assessed as not significant.

Recommended Option

18      It is recommended to Council to approve the unbudgeted expenditure request for Option 2 - Upgrade of the existing meters with Magflo type meters, quoted at $29,194.00 excluding GST.

Next Steps

19      If approval of the recommendation is given, then the quote submitted by Downer Ltd will be accepted and the Magflo meters will be installed at the three sites.

 

Attachments

There are no attachments for this report.  

 


Council

7 May 2020

 

Unbudgeted Expenditure Request - Solar Power Unit for Takitimu Reservoir

Record No:             R/20/5/10384

Author:                      Joe Findley, Projects Manager

Approved by:         Matt Russell, Group Manager Services and Assets

 

  Decision                                       Recommendation                                 Information

 

 

 

Purpose

1        The purpose of this report is to seek approval from Council in support of the unbudgeted expenditure required to install a solar power unit at the Takitimu Reservoir.

Executive Summary

2        The Takitimu Rural Water Scheme reservoir has an existing electrical supply which is fed through a private dwelling. This dwelling is now a rental property and has intermittent power interruptions when there are no tenants in the property. These power interruptions cause a loss of communications between the reservoir and the intake pumps, causing issues with the successful operation of the water scheme.

3        The power issue can be rectified through the installation of a solar power unit at the reservoir site. This would require unbudgeted expenditure of $5,100.00 to complete the installation.

 

Recommendation

That the Council:

a)            Receives the report titled “Unbudgeted Expenditure Request - Solar Power Unit for Takitimu Reservoir” dated 1 May 2020.

 

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)           Approves the unbudgeted expenditure to undertake the installation of a solar power unit at the Takitimu Rural Water Scheme reservoir for a total cost of $5,100.00.

e)            Approves the unbudgeted expenditure amount of $5,100.00 excluding GST is funded by the Te Anau General Reserve.

 

 

Background

4        The Takitimu Rural Water Scheme was installed in 1972 and is located east of the Mararoa River, north of Blackmount Redcliff Road. The scheme services around 34 connections with an annual total volume of around 101,400m3.

5        The scheme consists of two high lift inlet pumps, from an infiltration gallery at the Mararoa River. A rising main is laid through private land to the scheme reservoir, also on private land, at Gillespie Road. From the reservoir the scheme delivers water to end users via a network of various sized reticulation.

6        Significant capital upgrade projects were completed on the Takitimu Scheme in 2015 and 2017, all based around rising main or pipe reticulation replacement.

Issues

7        The scheme reservoir is sited on private land at 547 Gillespie Road. The reservoir has an electrical supply to power the communications between the reservoir and the intake pumps, essentially to tell the pumps when to turn on and off.

8        This power supply is fed through the private residential dwelling which sits adjacent to the reservoir. Historically the private residence has been occupied by the farm owner who was aware of the power supply. Following the sale of the property and subsequent renting of the dwelling, the power supply has been interrupted intermittently when the tenants have changed and power has been switched off.

9        Council staff have investigated options for establishing a stand-alone power supply for the reservoir. The options investigated include a metered supply from Gillespie Road and a solar power unit based at the reservoir site. The options have been estimated and the supply from Gillespie Road is believed to be cost prohibitive on the basis that it provides the same service as the solar power unit.

10      To ensure the continued successful operation of the Takitimu Rural Water scheme it is proposed to terminate the private electrical supply and replace this with a solar unit. 

Factors to Consider

Legal and Statutory Requirements

11      This project is being undertaken in accordance with the statutory processes and to fulfil Council’s statutory obligations set out in the Local Government Act 2002.

 

Community Views

12      Council staff have discussed this proposal with the Te Anau Basin Water Supply Sub-committee Chair, who has subsequently spoken to other sub-committee members. The Te Anau Basin Water Supply sub-Committee are in agreement that this work needs to be done. Due to the current lockdown situation, the sub-Committee have not had a formal meeting to approve this works however.

Costs and Funding

13     The two options have been estimated as per the below;

14     The non-metered pole supply was estimated by Council staff and includes for the trenching and installation of 170m of ducting and cable, connection to an existing pillar box, installation of a meter, connection to the reservoir and commissioning of all works - $15,800.00

15     A price for the supply, installation and commissioning of a solar unit has been provided by BREMCA Southland Ltd for - $5,100.00.

16      Funding the $5,100.00 can be achieved through the Te Anau General Reserve. There is currently $10,488.00 in this reserve. This reserve is the operating reserve for the Te Anau Basin Water Supply sub-Committee.

17     Due to the work not being budgeted for in the Long Term Plan this project requires Sub-Committee approval.

Policy Implications

18      Nil

Analysis

Options Considered

19      The following options have been identified and considered as outlined below in Options 1-3.

 

Analysis of Options

Option 1 – Installation of solar power unit at the Gillespie Road reservoir for $5,079.00.

Advantages

Disadvantages

·        Stand-alone supply without interruptions meaning continued successful operation of the Takitimu Scheme which delivers the required power capacity

·        Self contained and easily maintainable unit

·        No disruption to private land through trenching of cables

·        No requirement for an updated landowner agreement to be obtained

·        Requirement for unbudgeted expenditure

 


 

Option 2 – Installation of a reticulated metered power supply from Gillespie Road for up to $15,800.00

Advantages

Disadvantages

·        Stand-alone supply without interruptions meaning continued successful operation of the Takitimu Scheme which delivers the required power capacity

·        Future power capacity available for any possible reservoir upgrades which require an ongoing power source

·        Requirement for unbudgeted expenditure

·        Requirement for new landowner agreement to be drafted up and signed for the new cable over the private land

 

Option 3 – Keep the existing supply through the private residence

Advantages

Disadvantages

·        No requirement for unbudgeted expenditure

·        Possible on-going interruptions to power supply

·        Requirement to negotiate an agreement for the compensation of power usage with new landowner

 

Assessment of Significance

20      The proposed recommendations are assessed as not significant.

Recommended Option

21      It is recommended to Council to proceed with accepting the unbudgeted expenditure request for Option 1 – Installation of a solar power unit, for $5,100.00 to be funded through the Te Anau General Reserve.

Next Steps

22      If approval of the unbudgeted expenditure is received then the price submitted by BREMCA Southland Ltd will be accepted and the solar unit will be installed.

 

Attachments

There are no attachments for this report.   

 


Council

7 May 2020

 

Unbudgeted Expenditure - Car Park, Wallacetown Cemetery

Record No:             R/20/4/10267

Author:                      Mark Day, Community Facilities Manager

Approved by:         Matt Russell, Group Manager Services and Assets

 

  Decision                                       Recommendation                                 Information

 

 

 

Purpose

1        The purpose of this report is to approve unbudgeted expenditure in the amount of up to $20,000 (excl GST) in order to install a gravelled car park at the Wallacetown Cemetery and associated landscaping in the form of a low hedge and lawn.

Executive Summary

2        The former Wallacetown Community Board had identified the need to provide additional car parking space to cater for off street parking for visitors to the cemetery.

3        At the final meeting of the Wallacetown Community Board on 22 August 2019 they resolved in principle the use of reserve funds to undertake a number of pieces of work within the town.

4        At the Oreti Community Board meeting held on 24 February 2020 the report “Recommendations from the former Wallacetown Community Board final meeting” was reported to provide the history of works that they wanted to be completed.

5        The current amount of space available along the road frontage is not sufficient to cater for parking requirements during burials.

6        The old hedge was removed to enable the car park to be developed at the north end of the cemetery.

7        It is proposed that this unbudgeted expenditure request, if approved, be made from the Wallacetown General Reserve. The current balance as at 30 June 2019 is $194,523.

8        This report was to be approved by the Oreti Community Board at their meeting on the 6 April 2020 and then to Council on 22 April 2020, however due to the lock down this did not happen.

9        The Oreti Community Board chairperson has been approached and asked to canvas the community board members to make sure they approve of the process to have the unbudgeted expenditure report approved.

10      The chairperson responded in an email dated 29/04/2020 that the Oreti Community Board approved the report going to the Services and Assets committee for approval.

11      To keep this project on track it was presented on behalf of the Oreti Community Board to the Services and Assets committee meeting on the 6 May 2020 for recommendation to Council for approval.

 

Recommendation

That the Council:

a)            Receives the report titled “Unbudgeted Expenditure - Car Park, Wallacetown Cemetery” dated 3 May 2020.

 

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)           Approves the unbudgeted expenditure of up to $20,000 from the Wallacetown General Reserve to install a car park and associated landscaping.

 

 

Background

12      The old hedge at the northern end of the cemetery was removed to make way for a car park.

13      The current off street car parking is not sufficient to cater for the number of vehicles that attend burials at the cemetery.

14      At these times the vehicles create a hazard to other road users as they spill out onto the road.

15      The remaining debris from the hedge will be removed prior to the area being levelled and gravelled to form the car park.

16      An entrance point will be formed to provide access off the road, Ailsa Street.

17      A low row of shrubs will be planted to visually enhance the site and provide a barrier between the car park and the cemetery.

Issues

18      Unbudgeted expenditure which this report is seeking to resolve.

Factors to Consider

Costs and Funding

19      The Wallacetown General Reserve currently has a budget of $194,523.  It is anticipated that the physical works will cost approximately $15,000 - $17,000 to complete. A healthy contingency sum is considered appropriate as the site is a Hazardous Activities and Industries List (HAIL) site and will require appropriate excavation management and disposal as a result. The site itself has been identified as an old sheep dip.

Analysis

Options Considered

20      Either to approve or not approve the unbudgeted expenditure.

Analysis of Options

Option 1 – Approves the unbudgeted expenditure of up to $20,000 from the Wallacetown General Reserve to install a car park and associated landscaping

Advantages

Disadvantages

·        The new car park will provide sufficient parking to cater for off street parking during burials at the cemetery.

None identified.

 

Option 2 – Do not approve the unbudgeted expenditure

Advantages

Disadvantages

·        None identified.

·        There will be on going issues with parking congestion at the site.

 

Assessment of Significance

21      This request and required works are to ensure that the parking at the Wallacetown Cemetery will meet the needs of the public during burials at the cemetery.

Recommended Option

22      Option 1 – Approves the unbudgeted expenditure of up to $20,000 from the Wallacetown General Reserve to install a car park and associated landscaping.

Next Steps

23      Arrange for the car park work to be constructed.

 

Attachments

There are no attachments for this report.  

 


Council

7 May 2020

 

Forecasted Financial Position for the year ending 30 June 2020

Record No:             R/20/3/6547

Author:                      Joanie Nel, Management Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                       Recommendation                                 Information

 

 

 

 Purpose

1        To inform Council of the expected year-end financial result compared to the published 2019/2020 Annual Plan and seek approval from Council to approve the resulting forecasted position. 

2        Seek approval for a number of unbudgeted expenditure requests, including the deletion and deferral of a number of projects.

Executive Summary

3        Forecasting the financial position for the year ended 30 June 2020, is intended to provide information about what has changed since the budget was approved, why it has occurred and what the result is expected to be at the end of the year. Forecasting is based on the best knowledge that the relevant staff have at a point in time and events can overtake this. The information in this report was compiled by managers in early February, as the flooding event was occurring and before the covid-19 outbreak.

4        In considering the final position, staff consider what they planned to do in the Annual Plan, the projects carried forward from 2018/19 that were approved by Council on 27 September 2019, unbudgeted expenditure requests approved by Council or committees during the year and the expected year-end position as a result of operational decisions and information.

5       Forecasting enables the organisation to understand the anticipated year-end position at all levels. It will also assist with decisions and priorities for spending across Council.

6       The budgeted expenditure included in the Annual Plan for the 2019/2020 year was adopted in June 2019. Therefore since this date a number of events have potentially occurred that will change the year-end position. Forecasting allows a formal process to communicate to the Executive Leadership Team (ELT), Finance and Assurance Committee and Council any known or expected changes. The net change by business units is shown in appendix A.

7       The effect of the forecast changes on the Statement of Comprehensive Revenue and Expenditure and Statement of Financial Position is shown in appendix B and C.

8       As part of this report, approval is also sought for unbudgeted expenditure requests that have not been advised to Council previously. Additionally there are a number of projects that have been identified as needing to be deferred to future years. A detailed list of these projects can be found in appendix D. There is also a list of projects that are to be deleted, or where a project is completed under budget, the remaining budget is to be deleted, contained in appendix E.

9       This report was presented to the Finance and Assurance Committee on 30 April 2020. As the timing has not allowed any recommendations to be included in this report staff will provide an update to Council during the meeting.

 

 

Recommendation

That the Council:

a)            Receives the report titled “Forecasted Financial Position for the year ending 30 June 2020” dated 3 May 2020.

 

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)           Approve the changes as detailed in appendix A.

 

e)            Notes the forecasted changes to Council’s year-end financial performance and position as detailed in appendix B and C.

 

f)             Approves the deletion of the following 2019-20 projects:

 

Business Unit

Project

Amount

Riverton

Project to investigate stormwater discharge around Soundshell area due to blocked outlets

$10,000

Stewart Island Jetties

Golden Bay Wharf rebuild project

$233,812

Te Anau

Te Anau Stormwater condition assessment project terminated

$12,834

Te Anau

Project to Improve Link Te Anau – Manapouri trail and lakefront

$10,220

SIESA

Replacement Generator

$110,000

SIESA

Replace circuit breakers

$80,000

SIESA

Network upgrade

$20,440

SIESA

Exhaust system renewal/service

$20,000

SIESA

Replace one transformer

$35,000

SIESA

Gates, signs, fence/ Security

$30,000

SIESA

Ringfeed project Stage 3

$31,000

SIESA

Ringfeed project Stage 4

$56,000

SIESA

Ringfeed project Stage 5

$32,193

SIESA

Service SCADA control

$25,000

SIESA

Upgrade SCADA control

$10,000

 

g)           Approve the following unbudgeted expenditure and funding source:

Business Unit

Expense

Amount

Funding Source

Customer Service

Postage

$36,720

District Ops Reserve

District Water

Resource Consents

$29,560

Short term Internal Loan

District Water

Maintenance unplanned

$110,000

Short term Internal Loan

Wheelie bins

Waste Disposal

$57,026

Waste management reserve

Roading

Emergency Re-instatement of roads due to flooding

$1,825,000

Roading rate reserve, NZTA

Water Supply Manapouri

Water lateral renewals

$25,000

Internal Loan

Manapouri Airport

Civil Aviation Authority Compliance costs

$90,000

Manapouri-Te Anau Airport Reserve

Sewerage Scheme Otautau

SCADA renewals

$54,260

Internal Loan

Limehills

Community Centre Kitchen upgrade

$7,378

Limehills Community Centre reserve

 

h)           Approve to defer the following projects to the 2020/21 financial year:

 

Business Unit

Expense

Amount

Funding Source

District Library

Library RFID project and refurbishment at Winton

$382,800

Internal Loan

District Water

District Water Monitoring

$131,478

Internal Loan

Buildings Te Anau

Te Anau Library Project deferred to 20/21

$33,587

Property Development Reserve

Sewerage scheme Ohai

New UV/Treatment Plant upgrade

$54,225

Internal Loan

Stewart Island

Trail Park Pavilion toilets , project deferred to 20/21

$11,314

Internal Loan

Te Anau

Metering District Metered Areas

$101,500

Internal Loan

Te Anau Sewerage scheme

Scheme capacity upgrade (demand portion

$4,000,000

Development  Contributions and Internal Loan

Thornbury Streetworks

Kerb and channel Foster Road

$48,365

Internal Loan and Thornbury General Reserve

Waikawa Hall

Exterior Reclad of Hall

$25,000

Internal Loan and Waikawa-Niagara Community Centre Reserve

Streetworks Otautau

Footpath upgrade

$12,492

Rates and Internal Loan

Information Management

Core system review

$350,000

Internal Loan

 

Background

10      Forecasting enables transparency and Council to be informed of the anticipated year-end financial result. Forecasting is not intended to involve the time and effort undertaken in the annual budgeting process. 

11      Managers were able to submit changes until mid-February so this forecast reflects a “snapshot” in time.  Examples of items that have not been included in forecasting are costs in relation to the Invercargill office and a variation requested for the Wastenet recycling contract. As actual results will differ from the forecast, Council staff will still need to present to the committee at year end a listing of potential negative/positive carry forwards.  The forecasting numbers included in this report and that presented to Finance and Assurance were also compiled prior to the COVID-19 outbreak.    

12      The Te Anau wastewater project and the Wastenet recycling contract is currently being reviewed and options considered as we work to understand the implications of the various COVID-19 Alert Levels on our ability to undertake works coupled with the contractual implications for time and cost (if any) in conjunction with an assessment of what work within our works programme is considered essential versus able to be deferred without exposing the organisation to unreasonable risk increase.

13      In regards to projects identified as needing to be deferred to 2020/21, Council staff are currently incorporating these and the impact into the 20/21 Annual Plan.

14      Budget managers were requested to undertake forecasts for their business units where the expected overall outcome would vary from the budget in the annual plan by specified tolerance levels.  These net levels are set at:

·    $1,000 for Council-owned halls

·    $1,000 to $10,000 for townships depending on their operational expenditure in the current year

·    $10,000 for all District business units.  The maximum limit of $10,000 was set in line with the delegation held by the Chief Executive.


 

15      Changes due to forecasting have been included in the attachments as follows. 

·    Appendix A - provides details of changes to revenue, operating expenditure and capital expenditure for each business unit with commentary from the budget manager.

·    Appendix B - shows the net effect of the changes to the Statement of Comprehensive Revenue and Expenditure for the year-ended 30 June 2020.

·    Appendix C - shows the effect of changes to the Statement of Financial Position for the year ending 30 June 2020.

·    Appendix D - provides details of the specific projects being deferred to future years.
Currently staff are looking to incorporate the changes to the 19/20 year into the draft 2020/21 annual plan.

·    Appendix E - provides details of the specific projects being deleted.

 

16      A breakdown of the movement of projects (both capital and operational) as a result of carry forwards and forecasting for the 2019/2020 year is as follows:

Financial Activity

Amount

Projects as per the 2019/2020 Annual Plan

$24,064,723

Projects carried forward from 2019/2020

$968,480

October forecasting movement

$375,422

February forecasting movement

($6,611,620)

Expected project costs for 2019/20

$18,797,005

17     The roading capital programme for the year is as follows:

Financial Activity

Amount

Roading capital programme as per the 2019/2020 Annual Plan

$13,940,019

October forecasting movement

$1,500,000

Expected roading capital programme for 2019/20

$15,440,019

18     In addition to this, roading also complete a significant programme of operational and maintenance work. In this round of forecasting an additional $1.8 million of operational costs have been included for emergency works from the February emergency event. The total costs from the emergency works is expected to be $3 million over two years.


 

19     Appendix B outlines the overall impact of the changes on the Forecast Statement of Comprehensive Revenue and Expenditure. Details of the major forecasting changes can be found in appendix A and include the following:

Revenue - Revenue has increased from the last forecasted position by $523 thousand. This is principally due to:

·    additional funding of $930 thousand from NZTA for emergency works.

·    a reduction of $393 thousand in grants and subsidies due to deferral of projects on Stewart Island Jetties which are currently being re-scoped.

 

Operating Costs – Operating expenditure has increased from the budget by $1.456 million.
Major changes are:

·    increased costs for emergency works following the recent flooding damage in Southland in February of $1.825 million (in the current year) in the roading activity.

·    decrease of $91 thousand in knowledge management (related in a reduction in the number of LIMS processed) and $211 thousand in the resource consent department related to a lower level of consultants fees on-charged to applicants.

Capital – Forecast capital expenditure has decreased by $5.5 million due to the deferral of a number of projects including $4 million for the Te Anau Sewerage capacity upgrade. The SDI field pipe may be ordered but it is unlikely that any work on the membrane plant will be completed in the current financial year given the current stage in the procurement process. Details can be found in appendix A.

 

There are a number of projects for SIESA ($400 thousand) that have been deleted from the work programme. These are projects that were part of a work program developed a number of years ago and a new program is currently being developed. As part of agreeing to the new programme, unbudgeted expenditure will be sought from Council. This is likely to be in the 2020/2021 financial year.

20      The total forecast net deficit for the year is $4.5 million which is $1.2 million more than the annual plan budget.

21      The Te Anau sewerage upgrade has costs of $4 million deferred to 20/21 financial year. It is expected the pipeline will be completed in the current year.

22      In the December forecasting report there was a resolution for playground expenditure noting it was subject to community board approval. The activity manager no longer believes that the expenditure is required in this financial year and these entries have been removed from the projected financial results in this round. If any of this playground expenditure is required a new unbudgeted expenditure request will be made.

23      As part of the 2019/2020 Annual Plan Council has budgeted to achieve 159% of its benchmark of Capital expenditure to depreciation, on the five network infrastructure services (Roading, Solid Waste, Stormwater, Wastewater, Water supply).  Based on the forecast changes, it is estimated Council will end the year at 152%.  However it is worth noting that in order to arrive at the calculation, the depreciation number is still that budgeted, the actual depreciation as a result of the year end asset revaluation process may change this along with the actual work programme able to be achieved by year end.

Issues

24      Forecasting is part of the ongoing process to encourage better financial behaviours across the organisation. This includes early identification of projects that will not be completed by the end of the current financial year. Additionally, any changes at year-end will be included as part of the carry forward report to Council.

25      Forecasting also provides an opportunity to approve anticipated unbudgeted expenditure during the year. This should reduce the number of individual requests needed to be handled by Council. Council will still need to approve some expenditure items separately where the expenditure is large enough to require individual approval.

26      The work required to retain accreditation by Council as a Building Consent Authority are in excess of what the SDC Building solutions team can realistically deal with and Council needs to recognise that there are additional staffing costs for the building control department required in order to maintain accreditation with IANZ.  These are being worked through and have not been included in this round of forecasting.

Factors to Consider

Legal and Statutory Requirements

27      There are no legal or statutory requirements in regards to forecasting Council’s end of year position.

Community Views

28      The original budget was consulted on as part of the 2018 Long Term Plan budget process and estimates meetings. Changes proposed to capital and operational expenditure for townships will have been or will be reported to the relevant community board.

Costs and Funding

29      The forecasting that has been completed shows that the net deficit for this round of forecasting will be $904 thousand less (appendix A).

30      Overall net capital expenditure is expected to decrease by $5.5 million as in appendix A.

31      The impact on the budgeted Statement of Comprehensive Revenue and Expenditure for 2019/2020 is a net operating deficit of $1.2 million from the annual plan as shown in appendix B.

Policy Implications

32      Council staff must ensure that all expenditure is carried out within approved delegations.
The current financial delegations only allow the Chief Executive to approve unbudgeted purchase plant, capital items and goods and services expenditure up to $10,000.

Analysis of Options

The options are to approve or not to approve, in full or part, the forecasted adjustments to the expenditure in the annual plan.

Option 1 - Approve the forecast changes recommended including any adjustments approved at the meeting

Advantages

Disadvantages

·        Council is informed of anticipated changes from the annual plan for 2019/2020

·        Council has had the opportunity to prioritise expenditure to be incurred in the current financial year

·        Council staff are able to purchase services as required to provide services to the community in the most appropriate manner.

·        deferral of projects which are going to be completed later and/or costing more than previously indicated.

Option 2 - Approve the changes in income and expenditure in Attachment A

Advantages

Disadvantages

·        Council is informed of anticipated changes from the annual plan for 2019/2020

·        Council has had the opportunity to prioritise expenditure to be incurred in the current financial year

·        Council considers that the additional expenditure is not a current priority and does not need to be incurred.

·        processes may be delayed where further approval needs to be sought from Council before committing to additional expenditure.

Option 3 – Do not approve, in part or in full, the forecast changes recommended 

Advantages

Disadvantages

·        Council is informed of anticipated changes from the annual plan for 2019/2020.

·        Council has had the opportunity to prioritise expenditure to be incurred in the current financial year

·        processes may be delayed where further approval needs to be sought from Council before committing to additional expenditure.

 

Assessment of Significance

The content of this report is not deemed significant under Council’s Significance and Engagement Policy.

Recommended Option

33      Option 1 - Approve the forecast changes recommended including any adjustments approved at the meeting

Next Steps

34      Advise managers of the approval of any unbudgeted expenditure or confirmed project deletions for the 2019/2020 financial year.

35      Ensure that deferred projects are included in the proposed 2020-2021 annual plan.

 

Attachments

a             Appendix A - Forecasted adjustments to revenue, operating expenditure and capital expenditure by business unit

b             Appendix B - Forecasted statement of comprehensive revenue and expenditure for year ending 30 June 2020 as at February 2020

c             Appendix C - Forecasted financial position for year ending 30 June 2020 as at February 2020

d            Appendix D - Projects planned to be deferred from the 2020/21 Annual Plan

e             Appendix E - Projects planned to be deleted from the 2019/20 Annual Plan    

 


Council

7 May 2020

 

 

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Council

7 May 2020

 

 

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Public Excluded Council

07 May 2020

 

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Council

7 May 2020

 

 

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Public Excluded Council

07 May 2020

 

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Council

7 May 2020

 

Milford Community Trust - Statement of Intent 2020-2023

Record No:             R/20/4/10004

Author:                      Simon Moran, Community Partnership Leader

Approved by:         Rex Capil, Group Manager Community and Futures

 

  Decision                                       Recommendation                                  Information

 

 

 

Purpose

1        To seek endorsement of the Milford Community Trust’s Statement of Intent 2020-20223.

Executive Summary

2        The Milford Community Trust has endorsed the attached Statement of Intent and is seeking Council endorsement of it.

3        COVID-19 is the key issue to have emerged between the Trust’s endorsement of the Statement of Intent and its presentation to Council. It has significant implications for both the revenue stream and the key capital project which is the construction of the recreation centre.

4        The Trust will need to re-examine its budgets when it next meets in light of the effect on Milford Sound Piopiotahi businesses. That includes the Milford Recreation Centre project which had budgeted capital expenditure of $500,000. Although after the February floods this project was again endorsed by the operators, who will ultimately fund it through their contributions to the Milford Community Trust, it is now very unlikely to proceed within the next two years due to the effects of COVID-19 on the tourism industry.

5        It is recommended that the Council endorse the Milford Community Trust’s Statement of Intent 2020-2023.

 

Recommendation

That the Council:

a)            Receives the report titled “Milford Community Trust - Statement of Intent 2020-2023” dated 1 May 2020.

 

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)           Endorses the Milford Community Trust’s Statement of Intent 2020-2023.

 

Background

6        At its meeting on 26 February the Milford Community Trust discussed the attached Statement of Intent 2020-2023 and it was subsequently endorsed by all Trustees.

Issues

7        COVID-19 is the key issue to have emerged between the Trust’s endorsement of the Statement of Intent and its presentation to Council. It has significant implications for both the revenue stream and the key capital project which is the construction of the recreation centre.

8        The Trust will need to re-examine its budgets when it next meets in light of the effect on Milford Sound Piopiotahi businesses. That includes the Milford Recreation Centre project which had budgeted capital expenditure of $500,000. Although after the February floods this project was again endorsed by the operators, who will ultimately fund it through their contributions to the Milford Community Trust, it is now very unlikely to proceed within the next two years due to the effects of COVID-19 on the tourism industry.

Factors to Consider

Legal and Statutory Requirements

9        The Statement of Intent is a legally mandated document that the Trust must produce annually that covers a rolling three year period. The Local Government Act 2002 section 64 details the requirements for a statement of intent for council controlled organisations.

Community Views

10      There is no requirement to specifically consult with the community on the Statement of Intent.

Costs and Funding

11      The costs and funding outlined in the Statement of Intent are borne by the Milford Community Trust which receives its funding by directly invoicing the operators in Milford.

Policy Implications

12      There are no policy implications.

Analysis

Options Considered

13      The Milford Community Trust is required to produce a Statement of Intent and Council’s only options are to either endorse it or notendorse it.

Assessment of Significance

14      The activities and work programme in the Statement of Intent do not trigger any of the significance policy criteria.

Recommended Option

15      That Council endorses the Milford Community Trust’s Statement of Intent 2020-2023.

Next Steps

16      To circulate the Statement of Intent to the mandated stakeholders which are the Department of Conservation and Environment Southland.

 

Attachments

a             Milford Community Trust - Statement of Intent 2020-2023    

 


Public Excluded Council

07 May 2020

 

 

 

 

 

MILFORD COMMUNITY TRUST

 

 

 

 

STATEMENT OF INTENT

2020 - 2023


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.

 

 

 

 

 

 


Council

7 May 2020

 

Milford Community Trust - Half Yearly Report

Record No:             R/20/4/10005

Author:                      Simon Moran, Community Partnership Leader

Approved by:         Rex Capil, Group Manager Community and Futures

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        To provide Council with the Milford Community Trust’s half yearly financial report for its information.

2        The report is required under s66 of the Local Government because the Milford Community Trust is a council-controlled organisation.

 

Recommendation

That the Council:

a)            Receives the report titled “Milford Community Trust - Half Yearly Report” dated 3 May 2020.

 

Attachments

a             Milford Community Trust - Half Year Report to 31 December 2019    

 


Council

7 May 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.  

 

 


Council

7 May 2020

 

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

 

Recommendation

 

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

C10.1 Te Anau Wastewater Upgrade Update and Request for Unbudgeted Expenditure

C10.2 Te Anau Wastewater Upgrade – Recommendation to Award Membrane Filtration Plant Contract (19/46)

C10.3 Te Anau Wastewater Upgrade – Recommendation to Award Contract for Kepler Dripline Installation

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

Te Anau Wastewater Upgrade Update and Request for Unbudgeted Expenditure

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

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.

Te Anau Wastewater Upgrade – Recommendation to Award Membrane Filtration Plant Contract (19/46)

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.

Te Anau Wastewater Upgrade – Recommendation to Award Contract for Kepler Dripline Installation

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.