Late Reports Agenda of Council meeting - Wednesday, 29 January 2025

29 January 2025

7 Reports

25.1.24 Draft Consultation Document and Supporting Material for the 2025-34 Long-term Plan for Audit New Zealand

Doc ID: 2015448

Report Author:	Saskia Righarts, Group Manager - Business Support
Reviewed and authorised by:	Peter Kelly, Chief Executive Officer

1. Purpose of Report

To consider approving the 2025-34 draft Consultation Document for the Long-term Plan and supporting information to the Consultation Document be provided to Audit New Zealand.

Recommendations

That the Council

A. Receives the report and accepts the level of significance.

B. Approves that the draft Consultation Document be provided to Audit New Zealand for audit as required under the Local Government Act 2002.

C. Approves the following supporting information to the Consultation Document be provided to Audit New Zealand to facilitate the audit:

(a) Infrastructure Strategy

(b) Financial Strategy

(d) Fees and Charges

(e) Significance and Engagement Policy

(f) Revenue and Financing Policy

(g) Rates Remission and Postponement Policy

(h) Liability Management Policy

(i) Investment Policy

(j) Prospective Financial Statements and Prospective Funding Impact Statements

(k) Community Outcomes Development

(l) Significant Forecasting Assumptions and Risks

(m) Capital Expenditure for Activity Groups

D. Agrees that the consultation item for the Supercars grant that the preferred option is to support the grant of $250,000 with funding from the tourism reserves.

E. Agrees that the Chief Executive Officer is authorised, in consultation with the Mayor, to make any necessary formatting or editorial changes, or other such changes required by Audit New Zealand, to finalise the material ahead of presentation back to Council in March 2025.

2. Background

The Local Government Act 2002 (S 93 and 93A) requires Council to prepare and adopt a Long-term Plan every three years. At the February 2024 Council meeting it was agreed that the 2024-34 Long-term Plan be deferred and Council prepare an enhanced 2024-25 Annual Plan (under the options provided by the Government in the legislative changes surrounding the repeal of the three waters legislation).

This decision results in this being a nine-year plan (2025-34). Council will prepare the next long-term plan in two years’ time (2027-37 Long-term Plan) to get back into cycle with the requirements of the Local Government Act 2002.

The long-term plan process requires that Council prepare a Consultation Document and supporting information that has been audited by Audit New Zealand. Both the Consultation Document and the supporting information will be made available to the public.

Members of Council and the community boards have attended a number of workshops to identify the topics to be included in the 2025-34 Long-term Plan Consultation Document. Community boards have reviewed their proposed grant budgets and have recommended those proposed budgets be included in Council’s overall proposed rate increases (refer to the separate paper being presented at this meeting).

3. Discussion

Council is required to adopt a Consultation Document for the 2025-34 Long-term Plan that has been audited by Audit New Zealand. The Consultation Document outlines Council’s consultation ideas for the future and provides instructions to the public on the submission process.

At the meeting on 18 December 2024, Council agreed the following would be included as consultation items:

1. What’s our plan for water?

2. Volumetric water charges

3. Community halls and facilities

4. Ida MacDonald Roxburgh Pool Punawai Ora

5. Alexandra Outdoor Pool

6. Manuherekia Valley Community Hub

7. Supercars Championships at Highlands Motorsport Park

8. Artificial Turf at Maniototo Area School

9. Artificial Turf at Dunstan High School

At this meeting Council also agreed their preferred option for each item. On further analysis, there is $400,000 in the tourism reserves. Staff recommend rather than funding the proposed grant of $250,000 from a promotions rate, that these reserves are used. This would result in a nil impact on ratepayers.

The Significance and Engagement Policy was reviewed by the Audit and Risk Committee. As a result of feedback, the following changes were updated: finalising the Strategic Asset section and grouping some of the individually listed items; removed phrase ‘all aspects of decision making’ in the Māori Participation Framework; amended typos; adjusted wording in the table on mana whenua engagement; changed ‘Promise to the Public’ to ‘Commitment to the Public’ in Schedule 1; and adjusted the arrow in the Significance Continuum on page 4 of the Policy. Staff felt these adjustments reflected the feedback of the Committee while adhering to the guidance of the Office of the Auditor General, that the Policy meets the expectations of the specific community with regard to significance.

In order to facilitate the audit process Council is required to provide supporting material to Audit New Zealand. This information comprises the Infrastructure Strategy, Financial Strategy, Prospective Financial Information, Funding Impact Statement (Rates), Revenue and Financing Policy, Rates Remission and Postponement Policy, Investment Policy, Liability Management Policy, Significance and Engagement Policy, Significant Forecasting Assumptions and Risks, Development and Financial Contributions Policy and the Schedule of Fees and Charges. Changes may be made to these documents as a result of the audit and the public consultation process. These documents will also form the basis for the final 2025-34 Long-term Plan which is planned to be adopted by Council in June 2025.

This material will be considered by the Audit and Risk Committee on 28 January 2025. Due to time constraints their feedback will be verbally presented to Council. Note at the time of generation of this agenda, staff are waiting for a decision on how to treat water services in the consultation document. The challenge is that Central Otago District Council is in conversations with other councils about a joint Council Controlled Organisation, of which consultation will occur after the audit of the consultation document. The material in the consultation document may well change during the audit in February.

4. Financial Considerations

These are covered in the attached financials.

5. Options

Option 1 – (Recommended)

Approve that the consultation document and supporting material is provided to Audit New Zealand to enable the audit to commence on 3 February 2025.

Advantages:

· Adheres to the scheduled programme for the development of 2025-34 Long-term Plan.

· Ensures compliance with the requirements of the Local Government Act 2002.

· Meets community expectations.

Disadvantages:

· None identified.

Option 2

Approve that the consultation document and supporting material with amendments is provided to Audit New Zealand to enable the audit to commence on 3 February 2025.

Advantages:

· Adheres to the scheduled programme for the development of 2025-34 Long-term Plan.

· Ensures compliance with the requirements of the Local Government Act 2002.

· Meets community expectations.

Disadvantages:

· None identified.

Option 3

Do not approve that the consultation document and supporting material is provided to Audit New Zealand to enable the audit to commence on 3 February 2025.

Advantages:

· None identified.

Disadvantages:

· Does not adhere to the scheduled programme for the development of 2025-34 Long-term Plan.

· Does not comply with the requirements of the Local Government Act 2002 and will likely cause delays. There is a risk that the 2025-34 Long-term Plan would not be adopted by June 2025, impacting Council’s ability to collect rates for the planned work programmes.

· Does not meet community expectations.

6. Compliance

Local Government Act 2002 Purpose Provisions

This decision enables democratic local decision making and action by, and on behalf of communities by ensuring the correct legal process is followed in the development of the 2025-34 Long-term Plan.

Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.

The consultation document and supporting material for the 2025-34 Long-term Plan is required under the Local Government Act 2002.

Considerations as to sustainability, the environment and climate change impacts

There are no direct considerations as to sustainability, the environment and climate change impacts.

Risks Analysis

There is no risk in approving these documents be provided to Audit New Zealand. A delay in approving these documents will likely delay the audit and impact on the plan to have the 2025-34 Long-term Plan presented for final approval on 25 June 2025.

Significance, Consultation and Engagement (internal and external)

Once audited, these documents will be provided as part of the material for the 2025-34 Long-term Plan consultation. Public consultation is scheduled from 19 March to 16 April 2025.

7. Next Steps

Following Council agreement, the Consultation Document and supporting material will be provided to Audit New Zealand, with the audit scheduled to commence 3 February 2025. Amendments will be made as required and presented back to Council on 17 March 2025 for approval to adopt these documents for formal consultation.

8. Attachments

Appendix 1 - Draft Consultation Document ⇩

Appendix 2 - Infrastructure Strategy ⇩

Appendix 3 - Financial Strategy ⇩

Appendix 4 - Development and Financial Contributions Policy ⇩

Appendix 5 - Fees and Charges Schedule ⇩

Appendix 6 - Significance and Engagement Policy ⇩

Appendix 7 - Revenue and Financing Policy ⇩

Appendix 8 - Rates Remission and Postponement Policy ⇩

Appendix 9 - Liability Management Policy ⇩

Appendix 10 - Investment Policy ⇩

Appendix 11 - Community Outcomes ⇩

Appendix 12 - Significant Forecasting Assumptions and Risks ⇩

Appendix 13 - Prospective Financial Statements and Funding Impact Statements ⇩

Appendix 14 - Capital Expenditure for Activity Groups ⇩


AGENDA Late Reports Ordinary Council Meeting Wednesday, 29 January 2025
Date:	Wednesday, 29 January 2025
Time:	10.30 am
Location:	Ngā Hau e Whā, William Fraser Building, 1 Dunorling Street, Alexandra (A link to the live stream will be available on the Central Otago District Council's website.)
Peter Kelly Chief Executive Officer