Agenda of Extraordinary Finance and Performance Committee

Terms of Reference

Responsibilities

The purpose of the committee is to:

a) advise and support the mayor on the development of the Long-term Plan (LTP) and Annual Plan (AP)

b) monitor the overall financial management and performance of the council parent organisation and Auckland Council group

c) make financial decisions required outside of the annual budgeting processes.

The committee will establish an annual work programme outlining key focus areas in line with its key responsibilities, which include:

· advising and supporting the mayor on the development of the LTP and AP for consideration by the Governing Body including:

o local board agreements

o financial policy related to the LTP and AP

o setting of rates

o preparation of the consultation documentation and supporting information, and the consultation process, for the LTP and AP

· monitoring the operational and capital expenditure of the council parent organisation and Auckland Council Group, and inquiring into any material discrepancies from planned expenditure

· approving the financial policy of the council parent organisation

· establishing and managing a structured approach to the approval of non-budgeted expenditure (including grants, loans or guarantees) that reinforces value for money and an expectation of tight expenditure control

· approve the council insurance strategy and annual insurance placement for Council

· performance measures and monitoring

· write-offs

· acquisition of property in accordance with the LTP

· disposals in accordance with the LTP

· recommending the Annual Report to the Governing Body

· funding for achieving improved outcomes for Māori.

Powers

(i) All powers necessary to perform the committee’s responsibilities, including:

(a) approval of a submission to an external body

(b) establishment of working parties or steering groups.

(ii) The committee has the powers to perform the responsibilities of another committee, where it is necessary to make a decision prior to the next meeting of that other committee.

(iii) If a decision is a budgetary or financial decision that relates primarily to the Finance and Performance Committee responsibilities, the Finance and Performance Committee has the powers to make associated decisions on matters that would otherwise be decided by other committees. For the avoidance of doubt, this means that matters do not need to be taken to multiple committees for decisions.

(iii) The committee does not have:

(a) the power to establish subcommittees

(b) powers that the Governing Body cannot delegate or has retained to itself (section 2)

Code of conduct

For information relating to Auckland Council’s elected members code of conduct, please refer to this link on the Auckland Council website - https://www.aucklandcouncil.govt.nz/about-auckland-council/how-auckland-council-works/elected-members-remuneration-declarations-interest/Pages/elected-members-code-conduct.aspx

Exclusion of the public – who needs to leave the meeting

Members of the public

All members of the public must leave the meeting when the public are excluded unless a resolution is passed permitting a person to remain because their knowledge will assist the meeting.

Those who are not members of the public

General principles

· Access to confidential information is managed on a “need to know” basis where access to the information is required in order for a person to perform their role.

· Those who are not members of the meeting (see list below) must leave unless it is necessary for them to remain and hear the debate in order to perform their role.

· Those who need to be present for one confidential item can remain only for that item and must leave the room for any other confidential items.

· In any case of doubt, the ruling of the chairperson is final.

Members of the meeting

· The members of the meeting remain (all Governing Body members if the meeting is a Governing Body meeting; all members of the committee if the meeting is a committee meeting).

· However, standing orders require that a councillor who has a pecuniary conflict of interest leave the room.

· All councillors have the right to attend any meeting of a committee and councillors who are not members of a committee may remain, subject to any limitations in standing orders.

Independent Māori Statutory Board

· Members of the Independent Māori Statutory Board who are appointed members of the committee remain.

· Independent Māori Statutory Board members and staff remain if this is necessary in order for them to perform their role.

Staff

· All staff supporting the meeting (administrative, senior management) remain.

· Other staff who need to because of their role may remain.

Local Board members

· Local Board members who need to hear the matter being discussed in order to perform their role may remain. This will usually be if the matter affects, or is relevant to, a particular Local Board area.

Council Controlled Organisations

· Representatives of a Council Controlled Organisation can remain only if required to for discussion of a matter relevant to the Council Controlled Organisation.

Finance and Performance Committee

08 February 2022

Annual Budget 2022/2023: Communications and Engagement Plan

File No.: CP2022/00142

Te take mō te pūrongo

Purpose of the report

1. To seek approval for the proposed communication and engagement approach for public consultation on the Annual Budget 2022/2023.

Whakarāpopototanga matua

Executive summary

2. Every three years, councils are required to adopt a long-term plan (referred to by the council as the 10-year budget), with an annual plan (referred to by the council as the annual budget) adopted in the intervening years. This is the first annual budget following the 10-year Budget 2021-2031.

3. A special consultative procedure (SCP) is required (as set out in the Local Government Act 2002) in adopting the Annual Budget 2022/2023 due to the proposed amendment to the Auckland Waste Management and Minimisation Plan 2018 that is being consulted on as part of this annual budget. The proposed engagement plan meets the requirements of an SCP.

4. A purpose-built online engagement hub has been created to engage Aucklanders in a digital format. This will be complemented with a range of events (face to face and online) that will be held across the region enabling Aucklanders to have their say on the annual budget in ways that suit them. Targeted engagement will take place for various groups affected by specific rating changes in addition to general engagement on other topics.

5. This approach has in-built contingencies for different COVID-19 traffic light levels, based on experience from recent consultations which have been run successfully during the pandemic.

6. The proposed approach will meet our statutory obligations for this type of consultation and is designed to ensure the council hears from a wide range of Aucklanders, including Māori, Pacific, diverse communities and young people.

7. Auckland Council has obligations to enable Māori participation in council decision-making processes. A Māori engagement plan has been developed to meet those obligations.

8. The public consultation on the Annual Budget 2022/2023 will run from 11.00am on Monday, 28 February 2022 to 5.00pm on Monday, 28 March 2022.

9. Following the consultation period, a summary of public feedback received will be prepared for decision-makers. After decisions have been made, this will be communicated widely to all submitters and stakeholder groups involved in the process.

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a) agree to the proposed communication and engagement approach for the Annual Budget 2022/2023 set out in this report, noting:

i) public consultation will run from Monday, 28 February 2022 to Monday, 28 March 2022

ii) feedback can be provided through written, in person (COVID-19 permitting), telephone and digital channels

iii) various events and community forums will be held across the region (either in-person or virtually) to allow Aucklanders to have their views heard and provide feedback

iv) separate to the consultation feedback, a quantitative market research survey will be run by an industry leading market research agency and peer reviewed by the University of Auckland to provide an independent, representative survey

v) webinar information sessions will be available throughout the consultation period to give the public an opportunity to listen to and ask questions of elected members and/or subject matter experts

vi) post consultation, regional and local briefing reports will be prepared to provide a summary of public feedback received across all channels for decision-makers

vii) there will be a joint hui between the Tūpuna Maunga o Tāmaki Makaurau Authority and council to consider feedback on the draft Tūpuna Maunga o Tāmaki Makaurau Authority Operational Plan 2022/2023 ahead of adoption of the final plan

viii) a summary of the final decisions made will be prepared, then made publicly available and widely communicated in by July 2022.

b) agree to delegate to the following elected members and council officers the responsibility to hear feedback at the Have Your Say events for consultation on the Annual Budget 2022/2023:

i) Mayor and councillors

ii) local board chairs and local board members

iii) staff approved by the group chief financial officer.

Horopaki

Context

Annual Budget 2022-2023

10. Once every three years, councils are required to adopt a long-term plan (referred to by Auckland Council as the 10-year budget), and in the intervening years an annual plan (referred to by Auckland Council as the annual budget). This year the Governing Body will adopt the Annual Budget 2022/2023.

11. Each year the budget enables rates to be set for the year and includes setting the local board priorities for each of our 21 local boards as part of each local board agreement for the year. As part of this process, public consultation is conducted to get feedback on the proposed budget from citizens, customers and stakeholders, so that the council can consider the views and preferences of those who may be affected by, or interested in, the proposal. The feedback received feeds into the final proposal for the consideration of the Governing Body.

Engagement at Auckland Council

12. The council views engagement as a genuine dialogue with Auckland’s communities to help us make better decisions. High quality engagement with Aucklanders will allow us to make robust decisions that benefit communities and produce plans that are fit for purpose.

13. The council is also statutorily required to provide opportunities for Māori to contribute to the council’s decision-making processes. Our engagement practices must meet any applicable obligations required.

Significance and Engagement Policy

14. Auckland Council’s Significance and Engagement Policy has been in effect since 1 December 2014 as required under the Local Government Act 2002. This policy is currently being refreshed and will be considered for adoption at the February 2022 Governing Body meeting.

15. The policy specifies how and when communities can expect to be engaged with on different issues, assets or other matters and enables the council and our communities to understand the significance that the council places on proposals and decisions relating to those matters.

16. As part of the policy implementation, the council follows the International Association of Public Participation (IAP2) good practice approach, which is the most widely recognised international body for public participation.

17. Staff considered both the existing Significance and Engagement Policy, and the proposed changes to it, when identifying the key issues included in the Consultation Document for the annual budget and worked closely with the council’s legal team to ensure that the Consultation Document, Supporting Information and the consultation approach meet legislative requirements.

Communications and engagement approach

Introduction

18. The Finance and Performance Committee were provided with the draft approach to gathering feedback in November 2021. This includes Have Your Say (HYS) events, regional stakeholder events, a quantitative survey and other hui and community events.

19. To ensure that all public feedback delivered through HYS events can be incorporated into formal feedback, a delegation is sought to give the responsibility for hearing feedback to all elected members and staff approved by the group chief financial officer.

20. Further detail on key engagement approaches follows. More detail is set out in the Integrated Communications and Engagement Plan in Attachment A.

Communications

21. Communications activities have been designed to reach out to Aucklanders to encourage participation and to submit feedback. This will include:

· paid marketing campaign running across digital, social media, radio, print and outdoor

· proactive media relations

· use of Auckland Council channels, including OurAuckland, social media and digital screens

· contact via databases and targeted emails

· content in local papers and localised social media content

22. Webinar information sessions will also be available throughout the consultation period to give the public an opportunity to listen to and ask questions of elected members and/or subject matter experts.

Consultation documentation and translations

23. The consultation material and process should provide an effective basis for the public to participate in the council’s decision-making process.

24. The table below summarises the material developed to support consultation on the annual budget.

Table One: Material prepared to support consultation

Document	Description
Consultation Document	The document required by the Local Government Act 2002 which identifies and explains key budget issues. Includes the feedback form which sets out the consultation questions for the annual budget (see below).
Feedback form	A feedback form setting out the consultation questions for the annual budget. Translated into five languages, and New Zealand sign language. Questions have been reviewed by Dr Catherine Frethey-Bentham, Senior Lecturer and market research specialist, from the University of Auckland. In addition, the questions have been tested with a cross-section of Aucklanders.
Translated summary of Consultation Document	A summary of the annual budget key issues in the Consultation Document created for translation purposes and available in English plus five languages as well as a New Zealand sign language video.
Supporting Information	The information that is relied on by the content of the consultation document, including the relevant strategies, policies, detailed service level and budget information that support the Consultation Document and provide the basis for the preparation of the final annual budget.

25. In order to support Aucklanders to be able to provide feedback in a way that suits them best, all information will be provided online and in hard copy. Hard copies will be available at all libraries, service centres and local board offices as well as at events.

26. To enable a wide reach across Auckland’s diverse communities, a high-level summary of the Consultation Document and the feedback form will be translated into New Zealand Sign Language, Te Reo Māori, Samoan, Tongan, Korean and Chinese.

27. All consultation material will also be available online at www.akhaveyoursay.nz which is the HYS hub for the Auckland Council. People will be able to read through all the reference information before providing their feedback in an online form. The online forms will also be available for submission in translated languages.

Feedback channels

28. Aucklanders can submit their feedback in a number of ways:

· written feedback received through the council’s feedback form (online and hard copy), emails, letters etc.

· spoken interaction (verbal feedback) at virtual and face to face events

· social media

· telephone interviews for those who prefer a non-digital option of providing verbal feedback.

Māori Engagement

29. Auckland Council has obligations to enable Māori participation in council decision-making processes.

30. The Māori engagement programme includes:

i) annual budget topic and submission-making workshops with mana whenua and mataawaka organisation representatives. Resourcing contributions available for mana whenua entities seeking individualised support

ii) mana whenua meeting with the Governing Body on 15 March 2022 to discuss submission priorities and feedback on the proposed Annual Budget 2022/2023

iii) targeted Māori community engagement through partners and their networks, covering our high population areas and regionwide, supporting feedback through workshops, online and hard copy submission forms

iv) building awareness through pre-consultation targeted letters to previous submitters who identified as Māori through the recent Emergency Budget and 10-year Budget 2021-2031 consultation process.

31. More detailed information on the engagement approach with Māori is provided in Attachment B.

Have Your Say (HYS) events

32. HYS events with communities will be held across the region. Local boards will host most of these and have decided (in conjunction with councillors) on the number of events and format of events (round table, drop-in session or traditional hearing style) that they believe best suits their community. These events provide an opportunity for the community to have their views on local and regional issues heard by decision-makers or staff members acting under delegation to receive feedback.

33. At local events, ward councillors will speak to regional issues and consultation materials where possible and be available to answer any questions about the plan with members of the public.

34. Local boards will seek feedback specifically on the proposed priorities and preferences for their local board agreements. However, understanding local views on regional issues is also a priority.

35. In addition to local events, a number of regional events will take place to cater to a range of communities such as attendance at the Pasifika Festival and Kumeu Show (COVID-19 permitting).

36. People who attend events will, where practical, be asked to provide their demographic information. This will not be compulsory but should give an indication of those who have had spoken interaction as part the consultation in addition to those who provide written feedback by hard copy and online.

37. HYS events will be run in line with COVID-19 guidelines with the safety of staff, elected members and the public as a priority.

Engaging with diverse communities

38. Auckland is home to communities diverse in age, gender, sexuality, disability, nationality, religion and culture. Auckland Council is committed to supporting and including voices from Auckland’s diverse communities.

39. Auckland’s demographic advisory panels have been provided with a briefing on the issues that are being considered during the consultation process through a co-chairs forum and have had some initial engagement with councillors and senior staff to share initial community issues and priorities. All panels will have the opportunity to provide feedback on the draft annual budget in line with their terms of reference.

40. Through partnerships with a number of community organisations and advocacy groups, targeted events and forums will also be held to reach different demographic groups and communities. Community partners use their expertise, relationships, and networks to lead engagement with their own communities.

41. Reaching diverse audiences is a focus for the communications strategy. Specific channels including ethnic print, radio and out-of-home will be deployed to prioritise hard-to-reach groups.

Independent representative survey

42. Separate to the consultation feedback; an independent, representative survey will be run in line with the timing of the statutory consultation process. The quantitative nature of the survey will ensure that we achieve census level representation from demographic communities in Auckland. Results of the independent survey will be presented as a separate input into decision-making.

43. The survey will adopt a hybrid approach involving approximately 85 per cent of respondents being contacted online and around 15 per cent of respondents to be contacted via telephone. This ensures representation from communities where internet penetration is not high.

44. The survey is to be a ten minute interview. This ensures response rates are maximised and dropout rates are minimised. Given the amount of information needed to present to respondents, it looks likely that we can cover two topics in this depth.

45. At a regional level the sample size will be approximately N=4050. This allows for an average of n=200 completed surveys per local board (with the exceptions of Waiheke and Great Barrier where combined total would reach n=50). At a regional level the margin of error is +-1.6 per cent and 6.9 per cent at a local board level.

46. An industry leading market research company will be commissioned to design and conduct the survey to ensure independence. This will be peer reviewed by the University of Auckland to ensure best practice principles are adhered to.

Budget simulation trial

47. Aucklanders will again have a chance to use Balancing Act, an online budget simulation tool designed to meaningfully engage and inform communities on tough budget choices, including what rates pay for, and where additional revenue is generated.

48. The budget simulator gives users the opportunity to better understand the difficult trade-offs involved in balancing the budget by trying it themselves.

49. Any data gathered from the Balancing Act trial will not be formally included as feedback. Findings will be used to:

· provide a more interactive way to engage with Aucklanders on difficult budget conversations

· to better understand public sentiment, priorities, and preferences around the budget

· help council staff to develop future budgets.

Social media

50. While social media will be predominantly used to promote the consultation, feedback that uses the #akhaveyoursay tag will be captured through the council’s social media pages.

51. Social media is not an ideal tool for collecting feedback; people are less likely to have read consultation materials and there are concerns for digital safety.

Tauākī whakaaweawe āhuarangi

Climate impact statement

52. Climate action has been identified as a key topic for this consultation as part of the Mayoral Proposal and decisions as to items for consultation on 8 December 2021. As a result, climate change action is a focus for the consultation material and the communications and engagement approach.

53. Digital feedback will be encouraged where possible which will reduce the need for printed materials and waste produced from this process. Online webinars will also be offered for members of the public to discuss key issues with elected members and subject matter experts. These digital options will reduce the need to travel to a specific location to either give feedback or find out more information.

54. Staff will minimise the number of printed documents (including reference copies of the larger documents) although reordering will be possible. This will minimise wastage, encourage online participation whilst maintaining the opportunity for people to have their say on paper.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

55. Subject matter experts (SMEs) from across the council group have been involved in developing the draft annual budget. They will analyse the feedback received in order to produce a summary of feedback report for political consideration prior to final decisions on the annual budget being made. Subject matter experts will also be available at events to present information and answer questions from the public and community partners.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

56. Local boards are an integral part of the public consultation approach. A range of locally held HYS events (detailed on the council website), have been scheduled across the region to collect feedback on regional and local issues to inform the Annual Budget 2022/2023. Local boards will approve any recommended local priorities, whilst any regional decisions will be made by the Governing Body.

Tauākī whakaaweawe Māori

Māori impact statement

57. Auckland Council has obligations to enable Māori participation in council decision-making processes.

58. Resources have been allocated to ensure there is a dedicated approach to engagement with mana whenua and mataawaka Māori communities that builds on the relationships established during previous consultations.

59. Reporting on the annual budget will take a split view approach to ensure that Māori feedback is clear and distinct from general population feedback.

Ngā ritenga ā-pūtea

Financial implications

60. The proposed communications and engagement approach is to be funded as part of existing operational budgets.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

Risk	Mitigation
Pandemic traffic light/alert levels may impact in the following ways: · the overall reach to Aucklanders and particularly to diverse communities · event schedule and face-to-face spoken interactions may be limited if Auckland is affected by lockdowns or other public health measures and restrictions · the ability to process/analyse submissions due to impact on logistics and resourcing.	The current plan accommodates for all traffic light/alert levels but should restrictions increase, there would be more of a focus on online and phone feedback.
Overlap in National Policy Statement on Urban Development (NPSUD) consultation and release of updated property values in the region resulting in an oversaturated communications market minimising cut-through	Combining media briefs across the communications department to ensure we are managing channels carefully to avoid overlap. Use specific channels for target audiences where possible, rather than targeting all ratepayers at once.
Not reaching Auckland’s diverse communities	· Continue to engage with and through advisory panels · Work with community partners to help engage with diverse communities across the region · Go to where communities are online and offline
Risk that people may believe that all social media comments contribute as official feedback	Monitor and make sure people are clear that the #akhaveyoursay is to be used and it must be on an Auckland Council social media site for it to count as official feedback

Ngā koringa ā-muri

Next steps

61. Consultation will take place from 11.00am on Monday, 28 February 2022 to 5.00pm on Monday, 28 March 2022. The processing of feedback and the decision-making approach will follow the steps below:

62. Following consultation, regional and local briefing reports will be prepared to provide a summary of public feedback received across all channels which will be available for decision-makers. A summary of the final decisions made will be prepared in June 2022 and widely communicated with all submitters following adoption of the final annual budget on 29 June 2022.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Annual Budget 2022/2023 Māori Engagement Plan	19
b ⇩	Annual Budget 2022/2023: Communications and Engagement Plan	21

Ngā kaihaina

Signatories

Authors

Wendy Filip - Principal Citizen and Customer Engagement Specialist

Isabelle Walker, Senior Specialist Corporate Communications and Media

Authorisers

Kenneth Aiolupotea - General Manager Democracy and Engagement

Dan Lambert, General Manager - Communications

Ross Tucker - Acting Group Chief Financial Officer

Finance and Performance Committee

08 February 2022

Rating of Whenua Māori Changes to Financial Policies: Approval of consultation material

File No.: CP2022/00375

Te take mō te pūrongo

Purpose of the report

1. To recommend to the Governing Body approval of the Proposal and Supporting Information documents for changes to the Revenue and Financing Policy, the Māori Land Rates Remission and Postponement Policy and the Rates Remission and Postponement Policy for consultation alongside the Annual Budget 2022/2023.

2. These policies have been discussed as part of the process to develop the Annual Budget 2022/2023, but the consultation and final decision-making on these particular policies is required to be a separate legal process.

Whakarāpopototanga matua

Executive summary

3. On 8 December 2021, the Governing Body agreed to consult on the amendments to to the Revenue and Financing Policy, the Māori Land Rates Remission and Postponement Policy and the Rates Remission and Postponement Policy alongside the draft Annual Budget 2022/2023. The proposed policy amendments agreed by the Governing Body are summarised in the tables below.

Amendments to Māori Land Rates Remission and Postponement Policy

Changes in response to legislative amendments:

· Add objective to support Māori to retain and use their land.

· Remove the remission scheme for marae and urupā. These properties are now fully non-rateable.

· Introduce a new remission scheme for Māori land under development

Amendments to improve administration of the policy

· Expand the definition of Māori land to clearly identify the categories of land eligible for remission under the policy.

· Include remission for residents who occupy papakāinga housing under a licence to occupy scheme, currently included in the general rates remission policy.

Amendments to Rates Remission and Postponement Policy:

Changes in response legislative amendments:

· Add an objective to support Māori to retain and use their land.

Amendments to improve administration of the policy

· Align the definition of Māori land with the Māori Land Rates Remission and Postponement Policy.

· Remove the postponement of rates for land described as Lot 2 DP 476554 or Lot 2 DP 510763 scheme, as this scheme expired on 30 June 2021.

· Remove the remission for residents who occupy papakāinga housing under a licence to occupy scheme to now be included in the Māori Land Rates Remission and Postponement Policy.

Amendments to Revenue and Financing Policy:
Changes in response legislative amendments:	· Add a new funding principle to support the principles set out in the Preamble to Te Ture Whenua Maori Act 1993 to be considered when making funding decisions that specifically impact Māori landowners.
Amendments to enable Annual Budget proposals	· Include proposed Climate Action Targeted Rate.
Amendments to improve administration of the policy	· Remove outdated references. · Update the groups of activities table to include the solid waste services activity.

4. Amendments to the Local Government Act 2002 (LGA) made through the Local Government (Rating of Whenua Māori) Amendment Act 2021 require the council’s funding and financing policies to support the principles in the Preamble to Te Ture Whenua Māori Act 1993. These principles can be summarised as:

· reaffirmation of the special relationship between the Māori people and the Crown established in the Treaty of Waitangi

· recognition that land is a taonga tuku iho of special significance to Māori people

· promotion of the retention of that land in the hands of its owners, their whānau, and their hapū, and to protect wāhi tapu

· facilitation of the occupation, development, and utilisation of that land for the benefit of its owners, their whānau, and their hapū.

5. In addition to amendments required in response to these legislative changes, the Revenue and Financing Policy must also be amended as a consequence of changes proposed for the Annual Budget 2022/2023.

6. It is proposed that public consultation on these policies will be in the form of two separate consultation processes. The first, Whenua Māori Changes to Financial Policies, will cover the amendments to all three policies as a package. A second consultation process will cover just the proposal to amend the Revenue and Financing Policy. The consultation material and feedback questions related to the Revenue and Financing Policy will be the same in both consultations. This approach recognises that some members of the public will be interested in all policy changes related to Whenua Māori issues, while others may only be interested in changes to the Revenue and Financing Policy related to the annual budget.

7. The consultation materials are attached to this report. The consultation documents have been updated from those attached to the report to the Governing Body meeting held on 8 December 2021.

Engagement and Consultation

8. Public consultation on the annual budget and these policies is proposed to take place from 28 February 2022 to 28 March 2022.

9. Following the consideration of feedback, final decisions will be made on the annual budget on 7 June 2022 and the Governing Body will meet to adopt the final annual budget on 29 June 2022. The two remission policies will be adopted at the 7 June meeting, while the Revenue and Financing Policy will be adopted on 29 June alongside the annual budget.

10. Officers will hold a Have Your Say event for these policies and will be available to meet to discuss these issues further. Formal feedback will be sought from the Independent Māori Statutory Board (IMSB) and the Tāmaki Makaurau Mana Whenua Forum.

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a) whakaae / agree to:

i) recommend to the Governing Body that it adopt for consultation the:

A) Proposal to amend financial policies to comply with the Local Government (Rating of Whenua Māori) Amendment Act 2021 in Attachment A to this report

B) Proposal to amend the Māori Land Rates Remission and Postponement Policy in Attachment B to this report

C) Draft Māori Land Rates Remission and Postponement Policy in Attachment C to this report

D) Proposal to amend the Rates Remission and Postponement Policy in Attachment D to this report

E) Draft Rates Remission and Postponement Policy in Attachment E to this report

F) Proposal to amend the Revenue and Financing Policy in Attachment F to this report

G) Draft Revenue and Financing Policy in Attachment G to this report.

ii) recommend to the Governing Body that it delegate authority and responsibility for agreeing any required minor editorial changes and the correction of minor errors to the above documents to the chair of the Finance and Performance Committee and the group chief financial officer.

Horopaki

Context

11. Amendments to the Local Government Act 2002 (LGA) made through the Local Government (Rating of Whenua Māori) Amendment Act 2021 (the Amendment Act) require council to support the principles set out in the Preamble to Te Ture Whenua Māori Act 1993 through specified financial policies. The following policies must be reviewed to ensure they comply with the new section 102(3A) of the LGA:

Policy

Date policy needs to comply

· Māori Land Rates Remission and Postponement Policy

1 July 2022

· Revenue and Financing Policy

· Rates Remissions and Postponement Policy

Whichever is earliest:

· The next review after 1 July 2021

· 1 July 2024

12. The council is also required to review its Māori Land Rates Remission and Postponement Policy every six years and the last review was in 2015/2016. In addition, the legislative amendments referred to above now require the council to consider applications for remission of rates for Māori freehold land that is or will be developed. Under these amendments, council is not required to grant a remission, but the legislation identifies the factors that must be considered when making a decision on an application.

13. The proposals address the required policy changes together enabling a unified policy response to the issue of supporting Māori to retain and utilise their land. It also enables targeted engagement with Māori on all three policies as a package.

Tātaritanga me ngā tohutohu

Analysis and advice

14. A summary of the issues considered by council when agreeing to consult on the proposed amendments can be found in the supporting information attached to this report:

· Proposal to amend the Māori Land Rates Remission and Postponement Policy in Attachment B to this report

· Proposal to amend the Rates Remission and Postponement Policy in Attachment D to this report

· Proposal to amend the Revenue and Financing Policy in Attachment F to this report

Engagement and Consultation

15. Each policy will be consulted on separately alongside the draft Annual Budget 2022/2023. Draft proposal and policy documents for consultation can be found in the following attachments:

· Revenue and Financing Policy: Attachment A and B

· Māori Land Rates Remissions and Postponement Policy: Attachment C and D

· Rates Remission and Postponement Policy: Attachment E and F

16. Targeted consultation will be undertaken for Māori landowners, mana whenua and mataawaka organisations. A summary consultation document and feedback form covering all three policies will be issued to Māori landowners, and mana whenua and mataawaka contacts. A Have Your Say event targeted to Māori will be held for the policies. Members of the Financial Policy team will also be available to meet to discuss the issues raised by landowners and mana whenua.

Tauākī whakaaweawe āhuarangi

Climate impact statement

17. Recommendations in this report have a neutral climate impact as they relate to the allocation of charges rather than decisions on activities to be undertaken.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

18. The issues in this report do not impact on the wider council group.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

19. Local board representatives have participated in the workshops leading up to the Mayoral Proposal and expressed their views through this process including a specific opportunity to feedback on regional issues held on 17 November 2021. The views of local boards were formalised in the “Annual Budget 2022/2023: Regional topics for consultation – Local Board Input” report to the 8 December meeting of the Finance and Performance Committee.

Tauākī whakaaweawe Māori

Māori impact statement

20. Issues related to Māori land and how that is rated have high significance for Māori landowners. The advice provided in the report has also considered views including from Ngā Mātārae, the Māori Housing Unit in the Development Programme Office, officers of the Independent Māori Statutory Board, and Māori outcome leads across council.

21. The primary impact for Māori landowners of these proposals will be the ability to apply for rates remission for some types of Māori land under development. While owners developing or intending to develop Māori freehold land may already apply for consideration of a rates remission under section 114A of the Local Government (Rating) Act, our proposed policy:

· provides a simpler mechanism and greater certainty for owners undertaking development on unused or non-rateable land, or who are building community facilities or additional housing for the owners, their hapū or iwi members;

· is able to apply to a broader range of Māori land than just Māori freehold land.

22. The proposal to include a guiding a principle related to our obligation to support the principles of the Preamble to the Te Ture Whenua Māori Act 1993 will ensure that council gives this matter appropriate consideration when making future funding decisions that specifically impact Māori landowners.

23. Other changes proposed to the three policies will have minimal direct impact on Māori landowners. They have been proposed to provide greater clarity in the interpretation and application of the policies. Changes have also been proposed to the Revenue and Financing Policy, a consequence of changes proposed for the Annual Budget 2022/2023. The impact on Māori of these proposals was considered as part of the development of the annual budget.

24. Officers’ approach to engagement with Māori is set out in the report. Officers also note the importance of ensuring Māori landowners can effectively access the new remission schemes. The council website will be updated to make information on Māori land remissions more accessible and to provide contacts for assistance.

Ngā ritenga ā-pūtea

Financial implications

25. The financial implications of the proposed changes to policies were considered at the 8 December meeting of the Finance and Performance Committee. Approving the material for consultation does not have a financial impact.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

26. At this stage of the process the key risks are compliance and timing. Under the legislative requirements established by the Local Government (Rating of Whenua Māori) Amendment Act 2021, the council must adopt an amended Māori Land Rates Remission and Postponement Policy for 1 July 2022.

27. The legal team have reviewed the consultation material. Approval of the consultation document and supporting information at this meeting will enable the timetable for consultation and subsequent decision-making to be met.

Ngā koringa ā-muri

Next steps

28. Public consultation on the items attached to this report will open on 28 February 2022.

29. Following the consideration of feedback, final decisions will be made on the annual budget on 7 June 2022 and the Governing Body will meet to adopt the final annual budget on 29 June 2022. The two remission policies will be adopted at the 7 June meeting, while the Revenue and Financing Policy will be adopted on 29 June 2022 alongside the annual budget.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Proposal to amend Financial Policies in response to the Local Government (Rating of Whenua Māori) Amendment Act	49
b ⇩	Proposal to amend the Māori Land Rates Remission and Postponement Policy	53
c ⇩	Draft Māori Land Rates Remission and Postponement Policy	65
d ⇩	Proposal to amend the Rates Remission and Postponement Policy	75
e ⇩	Draft Rates Remission and Postponement Policy	77
f ⇩	Proposal to amend the Revenue and Financing Policy	87
g ⇩	Draft Revenue and Financing Policy	89

Ngā kaihaina

Signatories

Authors

Beth Sullivan - Principal Advisor - Financial Policy

Andrew Duncan - Manager Financial Policy

Authoriser

Ross Tucker – Acting Group Chief Financial Officer

Chairperson	Cr Desley Simpson, JP
Deputy Chairperson	Cr Shane Henderson
Members	Cr Josephine Bartley	Mayor Hon Phil Goff, CNZM, JP
	IMSB Member Renata Blair	Cr Richard Hills
	Cr Dr Cathy Casey	Cr Tracy Mulholland
	Deputy Mayor Cr Bill Cashmore	Cr Daniel Newman, JP
	Cr Fa’anana Efeso Collins	Cr Greg Sayers
	Cr Pippa Coom	Cr Sharon Stewart, QSM
	Cr Linda Cooper, JP	IMSB Chair David Taipari
	Cr Angela Dalton	Cr Wayne Walker
	Cr Chris Darby	Cr John Watson
	Cr Alf Filipaina, MNZM	Cr Paul Young
	Cr Christine Fletcher, QSO