Agenda of Regional Council - Thursday, 25 May 2023

Council

Membership

Chairperson	Chairman Doug Leeder
Deputy Chairperson	Cr Jane Nees
Members	All Councillors
Quorum	Seven members, consisting of half the number of members
Meeting frequency	Six weekly or as required for Annual Plan, Long Term Plan and other relevant legislative requirements

Purpose

· Enable democratic local decision-making and action by, and on behalf of, Bay of Plenty communities.

· Meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses.

· Set the overarching strategic direction for Bay of Plenty Regional Council as an organisation.

· Hold ultimate responsibility for allocating financial resources across the Council.

Role

· Address Local Electoral Act matters and Local Government Rating Act matters.

· Oversee all matters relating to identifying and contributing to community outcomes.

· Consider and agree on matters relating to significant new activities or areas of involvement such as infrastructure which are not the responsibility of a specific committee.

· Provide regional leadership on key issues that require a collaborative approach between a number of parties.

· Review and decide the Council’s electoral and representation arrangements.

· Consider issues of regional significance which are not the responsibility of any specific standing committee or that are of such regional significance/high public interest that the full Council needs to decide on them.

· Adopt Council’s Policy on Significance and Engagement Policy.

· Develop, adopt and implement the Triennial Agreement, Code of Conduct and Standing Orders.

· Consider and agree on matters relating to elected members’ remuneration.

· Appoint the Chief Executive, and review their contract, performance and remuneration at least annually.

· Approve all delegations to the Chief Executive, including the authority for further delegation to staff.

· Oversee the work of all committees and subcommittees.

· Receive and consider recommendations and matters referred to it by its committees, joint committees, subcommittees and working parties.

· Approve membership to external bodies and organisations, including Council Controlled Organisations.

· Develop, adopt and review policies for, and monitor the performance of, Council Controlled Organisations.

· Monitor and review the achievement of outcomes for the Bay of Plenty Community.

· Review and approve strategic matters relating to the sale, acquisition and development of property for the purposes of meeting Council’s organisational requirements and implement Regional Council policy.

· Address strategic corporate matters including property and accommodation.

· Consider and agree on the process to develop the Long Term Plan, Annual Plan and Annual Report.

· Adopt the Long Term Plan, Annual Plan and budgets variations, and Annual Report.

· Adopt Council policies as required by statute (for example Regional Policy Statement and Regional Land Transport Strategy) to be decided by Council or outside of committee delegations (for example infrastructure policy).

· Develop, review and approve Council’s Financial Strategy and funding and financial policies and frameworks.

· Institute any proceedings in the High Court that are not injunctive proceedings.

· Exercise the powers and duties conferred or imposed on Council by the Public Works Act 1981.

Delegations from Council to committees

· Council has a role to monitor the functioning of all committees.

· Council will consider matters not within the delegation of any one Council committee.

· Council may at any time, revoke or modify a delegation to a Council committee, either permanently, for a specified time or to address a specific matter, if it considers there is good reason to do so.

· The delegations provided to committees may be further delegated to subcommittees unless the power of further delegation is restricted by Council or by statute.

· It is accepted in making these delegations that:

· The committees, in performing their delegated functions, powers or duties, may, without confirmation by the Council, exercise or perform them in a like manner and with the same effect as the Council itself could have exercised or performed them.

· The delegated powers given shall at all times be subject to their current policies and principles or directions, as given by the Council from time to time.

· The chairperson of each committee shall have the authority to exercise their discretion, as to whether or not the delegated authority of the committee be used where, in the opinion of the chairperson, circumstances warrant it.

Powers that cannot be delegated

Under Clause 32 Schedule 7 of the Local Government Act 2002, Council must make the following decisions:

· Make a rate.

· Make a bylaw.

· Borrow money or purchase or dispose of assets, other than in accordance with the long-term plan.

· Adopt the long-term plan, annual plan, or annual report.

· Appoint a chief executive.

· Adopt policies required to be adopted and consulted on under the Local Government Act 2002 in association with the long-term plan or developed for the purpose of the local governance statement.

· Adopt a remuneration and employment policy.

Livestreaming and Recording of Meetings

Please note the Public section of this meeting is being recorded and streamed live on Bay of Plenty Regional Council’s website in accordance with Council's Live Streaming and Recording of Meetings Protocols which can be viewed on Council’s website. The recording will be archived and made publicly available on Council's website within two working days after the meeting on www.boprc.govt.nz for a period of three years (or as otherwise agreed to by Council).

All care is taken to maintain your privacy; however, as a visitor in the public gallery or as a participant at the meeting, your presence may be recorded. By remaining in the public gallery, it is understood your consent is given if your image is inadvertently broadcast.

Opinions expressed or statements made by individual persons during a meeting are not the opinions or statements of the Bay of Plenty Regional Council. Council accepts no liability for any opinions or statements made during a meeting.

Regional Council 25 May 2023

Recommendations in reports are not to be construed as Council policy until adopted by Council.

Agenda

E te Atua nui tonu, ko mātau ēnei e inoi atu nei ki a koe, kia tau mai te māramatanga ki a mātau whakarite mō tēnei rā, arahina hoki mātau, e eke ai te ōranga tonu ki ngā āhuatanga katoa a ngā tangata ki tō mātau rohe whānui tonu. Āmine.

“Almighty God we ask that you give us wisdom in the decisions we make here today and give us guidance in working with our regional communities to promote their social, economic, environmental and cultural well-being. Amen”.

1. Opening Karakia

2. Apologies

3. Public Forum

4. Items not on the Agenda

5. Order of Business

6. Declaration of Conflicts of Interest

7. Public Excluded Business to be Transferred into the Open

8. Reports

Decisions Required

8.1 Submissions on Fees and Charges Statement of Proposal and Deliberations 4

Attachment 1 - Fees and Charges Submissions received 4

Attachment 2 - Fees and Charges Recommendations 4

Attachment 3 - Fees and Charges Policy for Consultation 4

8.2 Strategic Direction Endorsement 4

Attachment 1 - Strategic Direction Endorsement - Council 25 May 2023 4

8.3 Annual Plan 2023/24 Deliberations - Public Transport Reprioritisation 4

8.4 Annual Plan 2023/24 Deliberations - Service Improvement Proposal Reprioritisation 4

8.5 Annual Plan 2023/24 Deliberations: Financial Overview and Implications 4

Attachment 1 - DAP 2023-2024 - Capital Projects 4

Attachment 2 - DAP 2023-2024 - Targeted Rates Smoothing 4

Attachment 3 - DAP 2023-2024 - Rates by TA 4

Attachment 4 - DAP 2023-2024 - Minor Rivers and Drainage Schemes Proposed 4

8.6 Annual Plan 2023/24 Deliberations - Mayoral Forum Independent Secretariat 4

8.7 Annual Plan 2023/24 Deliberations - Community Initiatives Fund Application - Taking Back Our Beach 4

Attachment 1 - 2023-24 CIF Application Form RENA DOCUMENTARY 4

Information Only

8.8 Financial and Non Financial Performance Report - Arotake: Nine months to 31 March 2023 4

Attachment 1 - Arotake Tuatoru 2022-2023 4

Attachment 2 - Bancorp Report March 2023 - Public Excluded

9. Public Excluded Section

Resolution to exclude the public

Excludes the public from the following parts of the proceedings of this meeting as set out below:

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:

Item No.	Subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Grounds under Section 48(1) for the passing of this resolution	When the item can be released into the public
8.8	Financial and Non Financial Performance Report - Arotake: Nine months to 31 March 2023 - Attachment 2 - Bancorp Report March 2023 - Public Excluded	Withholding the information is necessary to protect information where the making available of the information would be likely to unreasonably prejudice the commercial position of the person who supplied or who is the subject of the information.	48(1)(a)(i) Section 7 (2)(b)(ii).	To remain in public excluded.

8.8 Financial and Non Financial Performance Report - Arotake: Nine months to 31 March 2023 – Attachment 2

Attachment 2 - Bancorp Report March 2023 - Public Excluded

10. Public Excluded Business to be Transferred into the Open

11. Readmit the Public

12. Consideration of Items not on the Agenda

13. Closing Karakia



Report To:	Regional Council
Meeting Date:	25 May 2023
Report Writer:	Mark Le Comte, Principal Advisor, Finance and Alicia Burningham, Corporate Planner
Report Authoriser:	Mat Taylor, General Manager, Corporate Reuben Fraser, General Manager, Regulatory Services
Purpose:	For Councillors to receive submissions on Statement of Proposal for the Fees and Charges Policy and provide direction on the preparation of the Fees and Charges Policy

Submissions on Fees and Charges Statement of Proposal and Deliberations

Executive Summary

Council adopted the Fees & Charges Statement of Proposal for public consultation on the Fees and Charges Policy on 16 March 2023.

This paper presents the four submissions that were received as part of the public consultation process. No submitters chose to present their views directly to Council.

The submissions are presented in Attachment 1 and analysis and recommendations in Attachment 2, so that Councillors can consider each submission before considering the staff analysis.

Recommendations

That the Regional Council:

1 Receives the report, Submissions on Fees and Charges Statement of Proposal and Deliberations.

2 Directs staff to prepare the following for adoption:

(a) Fees and Charges Policy with no changes from consultation

Or:

(b) Direct specific changes to be prepared from Attachment 2.

1. Introduction

Council adopted the Fees and Charges Statement of Proposal on 16 March 2023, for public consultation from 11 April to 11 May 2023.

Consideration of submissions is a two-step process. Councillors should read and consider all submissions (Attachment 1) before reading the staff analysis of the options and recommendations (Attachment 2) and decide on the appropriate policy settings to include in the final Fees and Charges Policy.

1.1 Legislative Framework

Consultation on the Statement of Proposal is being conducted under the Local Government Act section 83 Special Consultative Procedure. The submissions period has closed, and the submissions are attached for Council consideration.

Fees and Charges provide partial cost recovery for compliance monitoring under the Resource Management Act

1.2 Alignment with Strategic Framework

A Healthy Environment	We manage our natural resources effectively through regulation, education and action.
Freshwater for Life
Safe and Resilient Communities
A Vibrant Region
The Way We Work	We deliver value to our ratepayers and our customers.

Public consultation and consideration of community views is an important part of Policy development. Revenue from fees and charges supports compliance monitoring work.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

¨ Cultural

¨ Social

þ Economic

2. Recommendations

As part of developing the Annual Plan 2023/24, assumptions around budgets and revenue targets have been updated. Cost pressures on activities that are part funded by fees and charges has resulted in a requirement to increase most fees and charges by 8.1%. Fees and charges are used to partially recover the cost of services that have a private benefit and the appropriate funding ratios are specified in the Revenue and Financing Policy.

Council could choose to set a lower percentage increase; however, this would require either a corresponding increase in general rates to cover costs or a reduction in compliance monitoring work with consequentially higher environmental risk.

It is recommended that the proposed Fees and Charges Policy is prepared to be adopted as drafted (Attachment 3) including the 8.1% average fee increase.

3. Considerations

3.1 Risks and Mitigations

There are no significant risks associated with this matter/subject/project/initiative.

3.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

3.3 Implications for Māori

Māori have had the opportunity to provide submissions on the Statement of Proposal.

3.4 Community Engagement

What level of engagement is council commited to? What actions will be taken

Consider identifying in the report:

• Council’s knowledge of community views on the subject.

• What aspect of the community is involved.

• How the views of the community were obtained.

• How the views were recorded and reported.

CONSULT

Whakauiuia

To obtain input or feedback from affected communities about our analysis, alternatives, and /or proposed decisions.

This paper and the attached submissions are the result of the consultation process that has been undertaken.

The final version of the Statement of Proposal and Draft Fees and Charges Policy was uploaded to Council’s Participate website. Letters were sent to all consent holders as changes to fees and charges will directly affect them.

3.5 Financial Implications

There are no material unbudgeted financial implications and this fits within the allocated budget.

4. Next Steps

Council will be asked to deliberate on the key decisions required for the Fees and Charges Statement of Proposal at this meeting. Following those decisions, staff will prepare the final draft Fees and Charges Policy for adoption with the Annual Plan 2023/24.

Each submitter will receive a letter that responds to the points they raised.

Attachments

Attachment 1 - Fees and Charges Submissions received ⇩

Attachment 2 - Fees and Charges Recommendations ⇩

Attachment 3 - Fees and Charges Policy for Consultation ⇩



Report To:	Regional Council
Meeting Date:	25 May 2023
Report Writer:	Namouta Poutasi, General Manager, Strategy & Science
Report Authoriser:	Namouta Poutasi, General Manager, Strategy & Science Mat Taylor, General Manager, Corporate
Purpose:	To endorse the new strategic framework to be used as the foundation for the long-term planning process

Strategic Direction Endorsement

Executive Summary

This paper covers three topics: Strategic Direction endorsement, the review of the Financial Strategy and Funding policies process and the Māori Land Rates Remission process.

Strategic Direction

The strategic framework is a key foundational input in the development of the Bay of Plenty Regional Council’s (Councils) Long Term Plan 2024-2034.

In the development of the new strategic framework Council has:

· Held two workshops in March 2023 to develop Councils Strategic direction.

· Held two Long Term Plan workshop discussions to further refine this strategic direction.

Staff now seek endorsement of the strategic direction to be used as the foundation for the activity structure and policy development required as part of the long-term planning process. The strategic framework includes Council’s – vision, mission, outcomes, enablers and commitment to the community of how we will work.

This information will be used as a basis for Councillors to engage with the community, stakeholders, and peer groups. Formal consultation of this direction will be included in the LTP consultation scheduled early in 2024.

Financial Strategy Process

It is recommended that Council delegates to the Risk and Assurance Committee the power to oversee the review process and provide advice to Council on the draft Financial Strategy and draft Funding and Financial Policies to meet guidance on the best practice review process.

Māori Land Rates Remission Process

At the 10^{th of} May 2023, Council Long Term Plan workshop, a presentation was given on the history of Māori Land and the many challenges, and barriers to development, that exist for owners of Māori Land. As part of the Long Term Plan process, Council must review its financial policies, including the Rates Remission and Postponement Policy and the Revenue and Financing Policy. Council is also required to support the principles as set out in the Preamble to Te Ture Whenua Māori Act 1993 within these financial policies.

It is recommended that Council delegates authority to Komiti Māori to workshop and provide direction on options for remissions on Māori land, the impact assessment of Māori Land and associated financial policy alignment.

Recommendations

That the Regional Council:

1 Receives the report, Strategic Direction Endorsement.

2 Endorses the strategic direction to be used as the foundation for the Regional Council’s Long Term Planning 2024-2034 process.

3 Delegates to the Risk and Assurance Committee the power to oversee the review process and provide technical advice to Council on the draft Financial Strategy and draft Funding and Financial Policies required by the Local Government Act (2002) sections 101A and 102 for Long Term Plan 2024-2034.

4 Delegates authority to Komiti Māori to workshop and provide direction on:

a) options for remissions on Māori Land to support the occupation, development and utilisation of the land;

b) the impact assessment on Māori Land that must be done as part of the funding needs analysis under Section 101(3)(a) of the Local Government Act 2002;

c) associated financial policy alignment with Section 102(3A)(a) and (b) of the Local Government Act 2002.

1. Introduction

The Long Term Plan 2024 – 2034 Strategic Direction for Council has been developed over the last three months. Changes have been made to earlier drafts as a result of the most recent LTP workshop. This report seeks endorsement of Direction to be used as the basis for developing the next Long Term Plan.

1.1 Legislative Framework

Section 93 (6) (b) of the Local Government Act 2002 requires a long term plan to:

(b) describe the community outcomes of a local authority’s district or region

This strategic framework identifies Councils strategic direction through its vision, mission, outcomes, enablers and making a commitment to our communities about how we work.

1.2 Alignment with Strategic Framework

A Healthy Environment	We manage our natural resources effectively through regulation, education and action.
Freshwater for Life	We listen to our communities and consider their values and priorities in our regional plans.
Safe and Resilient Communities	We work with our partners to develop plans and policies, and we lead and enable our communities to respond and recover from an emergency.
A Vibrant Region	We contribute to delivering integrated planning and growth management strategies especially for sustainable urban management.
The Way We Work	We look to partnerships for best outcomes.

The new strategic framework will supersede the framework above from 1 July 2024.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

High - Positive

¨ Cultural

High - Positive

¨ Social

High - Positive

¨ Economic

High - Positive

The new strategic framework is built off the four well beings, a further goal under Sustainable Development specifically references the four well beings. It is anticipated that additional context, including the importance of the four well beings, will be used in community engagement of the new strategic framework.

2. Strategic Direction

2.1 Development

As noted previously, there have been four specific discussions (two dedicated workshops with a further 2 Long Term Plan workshops) with Council over the past 3 months to develop Council’s new Strategic Direction which will guide the formation of the full strategic framework. Many topics were traversed in the framing up of this direction.

2.2 Content

Key changes to the strategic direction are summarised as follows:

· An updated vision to include the ‘Bay of Plenty Thriving Together - mō te taiao, mō ngā tāngata’

· A new mission ‘To create and enhance a resilient, healthy and sustainable Bay of Plenty region’

· Five new outcomes, with goals including – Healthy Environment, Future Ready Communities, Connected Communities, Sustainable Development and Te Ara Poutama, reflecting Councils key focus areas.

· Te Reo translation adjoining the English version.

· Introducing a section on ‘Enablers’ focused on Delivery, Investment, and Partnerships and Engagement.

· Updated ways of working.

A copy of the Strategic Framework is included as Attachment 1.

3. Review of Financial Strategy and Funding and Financial Policies

Review of Financial Strategy and Funding and Financial Policies.

The Long Term Plan 2024-2034 includes reviews of the Financial Strategy and the Funding and Financial Policies required by the LGA S101A and 102 respectively. The intended approach for these reviews is likely to require a substantial amount of analysis and it is important to ensure that these policies are robust and have been developed following a legislatively compliant process. The Funding and Financial Policies required include:

(a) a revenue and financing policy; and

(b) a liability management policy; and

(d) a policy on development contributions or financial contributions; and

(e) a policy on the remission and postponement of rates on Māori freehold land.

Guidance from Audit New Zealand, and the practice of many councils is to involve the Risk and Assurance Committee (or similar committee) with reviews of financial policies, with Council being the final decision maker.

In addition, the independent member of the Risk and Assurance Committee works with several other Councils and would add substantial value to the discussions. Any Councillor may attend the Risk and Assurance Committee meetings and workshops and are encouraged to do so.

It is proposed to formally delegate to the Risk and Assurance Committee the power to review and provide technical advice to Council on the draft Financial Strategy and draft Funding and Financial Policies to meet guidance on best practice review process and ensure there is a clear audit trail for this responsibility. The Risk and Assurance Committee would recommend the draft policies to Council to adopt for Audit in December 2023.

4. Māori Land Rates Remission Process

At the 10^th
of May 2023 Council Long Term Plan workshop, a presentation was given on the history of Māori Land and the many challenges, and barriers to development, that exist for owners of Māori Land.

As part of the Long Term Plan process, Council must review its financial policies, including the Rates Remission and Postponement Policy and the Revenue and Financing Policy. Council is also required to support the principles as set out in the Preamble to Te Ture Whenua Māori Act 1993 within these financial policies. The Preamble states:

Nā te mea i riro nā te Tiriti o Waitangi i motuhake ai te noho a te iwi me te Karauna: ā, nā te mea e tika ana kia whakaūtia anō te wairua o te wā i riro atu ai te kāwanatanga kia riro mai ai te mau tonu o te rangatiratanga e takoto nei i roto i te Tiriti o Waitangi: ā, nā te mea e tika ana kia mārama ko te whenua he taonga tuku iho e tino whakaaro nuitia ana e te iwi Māori, ā, nā tērā he whakahau kia mau tonu taua whenua ki te iwi nōna, ki ō rātou whānau, hapū hoki, a, a ki te whakangungu i ngā wāhi tapu hei whakamāmā i te nohotanga, i te whakahaeretanga, i te whakamahitanga o taua whenua hei painga mō te hunga nōna, mō ō rātou whānau, hapū hoki: ā, nā te mea e tika ana kia tū tonu he Kooti, ā, kia whakatakototia he tikanga hei āwhina i te iwi Māori kia taea ai ēnei kaupapa te whakatinana.

Whereas the Treaty of Waitangi established the special relationship between the Maori people and the Crown: And whereas it is desirable that the spirit of the exchange of kawanatanga for the protection of rangatiratanga embodied in the Treaty of Waitangi be reaffirmed: And whereas it is desirable to recognise that land is a taonga tuku iho of special significance to Maori people and, for that reason, to promote the retention of that land in the hands of its owners, their whanau, and their hapu, and to protect wahi tapu: and to facilitate the occupation, development, and utilisation of that land for the benefit of its owners, their whanau, and their hapu: And whereas it is desirable to maintain a court and to establish mechanisms to assist the Maori people to achieve the implementation of these principles.

In order to provide direction on Māori Land Rates Remissions staff recommend that Council delegates authority to Komiti Māori on:

· options for remissions on Māori Land to support the occupation, development and utilisation of the land,

· the impact assessment on Māori Land that must be done as part of the funding needs analysis under Section 101(3)(a) of the Local Government Act 2002,

· financial policy alignment with Section 102(3A)(a) and (b) of the Local Government Act 2002

5. Considerations

5.1 Risks and Mitigations

Risks associated with the development of the Long Term Plan will be managed through the Risk and Assurance Committee.

5.2 Climate Change

The implications of Climate Change are captured through the new outcomes and goals, in particular the Future Ready Communities Outcome Goals 5 and 6, and Sustainable Development Outcome, Goal 13.

5.3 Implications for Māori

The new strategic framework has a dedicated outcome on Te Ara Poutama, translated as the Pursuit of Excellence.

Te Ara Poutama refers to the pathway of excellence. In traditional Māori history, it was the final pathway ascended by Tāne to retrieve the three baskets of knowledge.

These outcomes build Regional Council’s current Partnerships with Māori Impact statement and the transformational shifts contained within it.

The inclusion of this outcome was to reflect

· Our dynamic cultural landscape which has multiple Iwi-hapū-Māori entities.

· Previous LTP commitment to exploring a specific Māori outcome for LTP 2024.

· Alignment with key recommendations from the previous Māori responsiveness framework.

· Reflecting Council’s continued commitment to the pursuit of excellence in this area.

· Direct alignment with our existing Māori partnership impact statement.

· Strengthen alignment with other Councils that have Māori-specific outcomes as part of their existing LTPs (4 Regional Councils and 5 District Councils).

· Helps to deliver against existing statutory provisions for Māori.

5.4 Community Engagement

Community engagement is a key component of the updated strategic framework. We will be seeking community feedback on our strategic framework when we engage on our next Long Term Plan.

5.5 Financial Implications

The Financial Strategy for the Long Term Plan will be worked through in the Risk and Assurance Committee LTP workshops. Financials will be reviewed through the LTP process.

6. Next Steps

Once endorsed this strategic direction will form the direction and alignment of Council’s activities, plans, policies, and work programmes for the Long-Term Plan 2024 – 2034.

Attachments

Attachment 1 - Strategic Direction Endorsement - Attachment Council 25 May 2023 ⇩



Report To:	Regional Council
Meeting Date:	25 May 2023
Report Writer:	Olive McVicker, Corporate Performance Team Lead; Mike Seabourne, Director, Public Transport and Oliver Haycock, Manager, Transport Planning
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	This paper seeks Council confirmation of the budget reprioritisations for projects in the Public Transport Activity through the Annual Plan 2023/24.

Annual Plan 2023/24 Deliberations - Public Transport reprioritisation

Executive Summary

Three service improvement proposals for increased investment in the Public Transport activity were considered at the February 2023 workshop for the Annual Plan 2023/24. Councillors provided guidance that these proposals are to be funded through existing budgets. The proposals were for:

· Tauranga Bus Shelters

· Transport – Consultancy Support

· Transport – On Demand trial

This paper identifies the funding reprioritisation available for these projects and seeks Council confirmation of the proposed funding to enable their inclusion in the 2023/24 Annual Plan and Budget.

Recommendations

That the Regional Council:

1 Receives the report, Annual Plan 2023/24 Deliberations - Public Transport reprioritisation.

2 Confirms the reprioritisation of funding for the following items as set out in this paper:

(a) Tauranga Bus Shelters;

(b) Public Transport - Consultancy Support;

1. Introduction

Service Improvement Proposals (SIP) for increased investment in the Public Transport activity was considered at the Annual Plan 2023/24 workshop in February 2023.

This paper confirms the status of three proposals and the opportunities identified in reprioritisation of funding to enable the projects inclusion in the Annual Plan 2023/24.

1.1 Legislative Framework

Council is required to have an Annual Plan under section 95 of the local Government Act 2002. Information in this paper contributes to the development of the Annual Plan 2023/24.

1.2 Alignment with Strategic Framework

A Healthy Environment
Freshwater for Life
Safe and Resilient Communities
A Vibrant Region	We lead regional transport strategy and system planning, working with others to deliver a safe and reliable public transport system.
The Way We Work

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

Medium - Positive

¨ Cultural

¨ Social

þ Economic

Medium - Positive

2. Public Transport Reprioritisation

The table below provides a summary of proposals that have been considered by Councillors through the Annual Plan workshop and where guidance has been provided to fund the items through existing budgets.

Report ref:	Project Name	Description	2023/24		Reprioritisation of Funding Source
Report ref:	Project Name	Description	Opex	Capex	Reprioritisation of Funding Source
2.1	Tauranga Bus Shelters	To support Tauranga City Council with their bus shelter improvement programme. It is proposed that BOPRC contributes funding for three high quality bus shelters in prominent locations.	$50,000		Reprioritisation of projects within UFTI
2.2	Public Transport – Consultancy Support	Additional funding to fund contractor/consultancy support to help deliver the wider transport programme.	$250,000		Managed within existing budgets
2.3	Transport – On Demand Trial	To fund a two year On-Demand Public Transport Trial	$299,000 (Net)	$80,000 (net)	Repurposing funding from UFTI

2.1 Tauranga Bus Shelters

Councillors agreed that the Tauranga Bus Shelters project should proceed however, opportunities for reprioritisation should be considered before utilising the targeted rate. To fund this project reprioritisation has been undertaken in the operating budget for security costs. Savings made will be used to fund this project. The UFTI reserve funds were included in the LTP 2021 – 2031 for the 2023/24 year. The budgeted reserve is $2.9m. With reprioritisation of projects within this programme the Tauranga Bus Shelters can be accommodated.

2.2 Public Transport Expert Support

The Transport work programme faces two main headwinds, shortage of internal resource due to vacancies and the need to accelerate delivery to meet programme deadlines and contractual requirements. This expense can be accommodated within existing budgets

The below work programmes are in the planning stage where the most benefit from external expertise is made.

a) Infrastructure Project Portfolio response – Increasing business case and TSP programme activity in the Western BOP sub region requiring council response and SME support. This is critical to define the trigger points across the transport system where the PT service under UFTI requires a step change in LOS.

b) PT Contract term ends – Councils PT contracts end progressively from this year through to 2028. The critical contractual deadline is the school bus contract in the Western Bay. A strategic procurement plan is required to map this process and agreed timeframes but is contingent on the work streams below.

c) Sustainable PT Framework – Will require consideration by Council for owning PT assets and SME support for the financial and operation impacts on Council.

d) Bus decarbonisation trial – decarbonisation is required by 2030 and no new diesel units from 2025. This trial will require project management and SME support so that the Council can access CERF funding for a trial in the Western Bay for the first iteration.

e) Small Project Program (LCLR funding pathway) – Non delivery of the Council LCLR programme in 2020-2022 programme requires project management support to develop and deliver. This work in the Western Bay is short term project based and suitable for delivery by external resource and is included in the optimisation.

f) Safety Portfolio – Costs associated with management of the Councils safety responsibilities due to vacancy.

2.3 Transport – On Demand Trial

This proposal was provided to Council at the February Annual Plan workshop for information only and was subject to consideration by the Public Transport Committee in March 2023.

The Public Transport Committee endorsed the proposal and is seeking to fund the $2.0m required for the 18-month trial commencing January 2024, including capital costs. Budgeted costs are shown in the table below.

The costs identified in the table above reflects the full cost of the trial and potential funding from Waka Kotahi. The remaining cost to council will be funded through the UFTI reserve for the full duration of the trial period.

3. Considerations

3.1 Risks and Mitigations

Risks and mitigations were considered when projects were considered through the Annual Plan Workshop in February 2023.

3.2 Climate Change

An efficient and effective public transport network is an essential ingredient in the ability to mitigate the impacts of climate change. Implications for climate change were considered as part of the Service Improvement Proposal assessment and the outcome provided to Council at the February workshop.

3.3 Implications for Māori

Any implications for Māori were considered as part of the Service Improvement Proposal assessment and the outcome provided to Council at the February workshop.

3.4 Community Engagement

INFORM

Whakamōhio

To provide affected communities with balanced and objective information to assist them in understanding the problems, alternatives and/or solutions.

3.5 Financial Implications

If the recommendation is adopted by Council, will it result in:

If the answer is ‘no’ to both questions please select the dropdown option 1 and complete appropriately.

If the answer is ‘yes’ to either question please select “Budget Implications” in the building block below and liaise with your Management Accountant in order to complete the Financial Impact table.

Financial implications are set out under the relevant sections of this paper.

4. Next Steps

Next Steps: What next? What resources are needed? Further analysis? Timeframes ahead. Any consultation planned. Remind Council of the process ahead. Next update to Council?

Conclusion: Short concluding remarks. Referring back to recommendations. No new content.

Direction from Council at this meeting will be incorporated into the final draft Annual Plan 2023/24 that is planned to be presented to Council for adoption in June 2023.



Report To:	Regional Council
Meeting Date:	25 May 2023
Report Writer:	Olive McVicker, Corporate Performance Team Lead; Kumaren Perumal, Chief Financial Officer; Graeme Howard, Corporate Planning Lead and Karlo Keogh, Senior Management Accountant
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	This paper seeks Council confirmation of budget reprioritisations for service improvement proposals presented in February as part of the Annual Plan workshop.

Annual Plan 2023/24 Deliberations - Service Improvement Proposal Reprioritisation

Executive Summary

This report provides details on the SIP’s listed below and seeks Council confirmation of the budget reprioritisation identified.

· Spatial Planning – He tirohanga hononga, He ara mu

· Catchments – Coast Care Baseline and Priority Biodiversity funding

· Rivers and Drainage – Safeguarding our Stopbanks

· Transport – Rotorua Refresh

Reprioritised funding was identified for all SIP’s except the Spatial Planning proposal which requires further direction. Where reprioritisation was identified, the proposals have been included in the latest of the Annual Plan estimates.

The proposal by Rivers and Drainage – Making Room for the River has been deferred to the Long Term Plan 2024 – 2034.

The Public Transport SIP’s are considered in a separate paper at this meeting.

Recommendations

That the Regional Council:

1 Receives the report, Annual Plan 2023/24 Deliberations - Service Improvement Proposal Reprioritisation.

2 Confirms the reprioritisation of funding for the following items, as set out in this paper:

a. Spatial Planning – He tirohanga hononga, He ara mu;

b. Catchments – Coast Care Baseline and Priority Biodiversity funding;

c. Rivers and Drainage – Safeguarding our Stopbanks.

1. Introduction

Service Improvement Proposals (SIPs) for increased investment in several activities were considered at the Annual Plan 2023/24 workshop held in February 2023.

This paper confirms the status of these project proposals and the results of the reprioritisation of funding for inclusion in the Annual Plan 2023/24.

1.1 Legislative Framework

Section 95 of the Local Government Act 2002 requires Council to have an Annual Plan. Information contained in this paper are inputs to the Annual Plan 2023/24.

1.2 Alignment with Strategic Framework

A Healthy Environment
Freshwater for Life
Safe and Resilient Communities
A Vibrant Region
The Way We Work	We deliver value to our ratepayers and our customers.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

Medium - Positive

¨ Cultural

¨ Social

¨ Economic

2. Service Improvement Proposal Reprioritisation

Summary of projects and reprioritisation actions

Report ref:	Project Name	Description	2023/24		Reprioritisation of Funding Source
Report ref:	Project Name	Description	Opex	Capex	Reprioritisation of Funding Source
2.1	Spatial Planning – He tirohanga hononga, He ara mu	Relates to the expansion of the regional spatial planning work programme to enable a more integrated and connected view of the region and associated sub-regions.	$500,000		Reprioritisation of activity budget $500K approved by Council. No further funding requested
2.2	Catchments – Coast Care Baseline and Priority Biodiversity funding	Coast Care is a coastal restoration programme run in partnership with local communities, local authorities, care groups and schools to restore and protect the sand dunes along Bay of Plenty beaches.	$75,000		Reprioritisation of volunteer funding
2.3	Rivers and Drainage – Making Room for the River	To work with private property owners to achieve more sustainable and natural solutions to localised erosion and or flooding problems	$200,000		Deferred to Long Term Plan 2024 - 2034
2.4	Rivers and Drainage – Safeguarding our Stopbanks	To remedy uncontrolled use and remediate damage to urban stopbanks.	$30,000	$700,000	$700k capital funded by targeted rate $24k funded by targeted rate reserve $6k reprioritisation from current operating budget

2.1 Spatial Planning – He tirohanga, He ara mu

This project sought $700,000 in funding to deliver “He tirohanga hononga, He ara mua”. This relates to the expansion to the regional spatial planning work programme to enable a more integrated and connected view of the region and associated sub-regions.

At the February workshop Council approved the redirection of $500,000 from the reprioritisation of the activity budget. No further funding is sought.

2.2 Catchments – Coast Care Baseline and Priority Biodiversity funding

This project sought additional funding of $75,000 to increase support for the Coast Care coastal restoration programme.

Council strongly supported Coast Care but there was a reluctance to use the Regional Fund Reserve if alternative funds were available via reprioritisation.

The additional $75,000 is funded through unallocated volunteer funding and the likelihood that an additional priority biodiversity site will not proceed.

This proposal has been included in the latest version of the 2023/24 financial estimates.

2.3 Rivers and Drainage – Making Room for the River

This proposal sought additional funding of $200,000 to work with private property owners to achieve a more sustainable and natural solution to localised erosion and / or flooding problems. It is intended that any physical works will be delivered by property owners, locals and contractors with oversight by engineering staff.

It was proposed that $87,000 would be reprioritised from a previous groyne trial budget. This was approved by Council. The request for the remaining $113,000 from the Regional Reserve Fund was not supported.

Council supported this project as a pilot but required more information and a defined scope. It was proposed that the reprioritised $87,000 could be used for this purpose.

This project has been deferred to the Long Term Plan 2024 – 2034 for consideration.

2.4 Rivers and Drainage – Safeguarding our Stopbanks

This proposal requested additional funding of $30,000 operational expenditure and $700,000 capital expenditure to support Council to remedy uncontrolled use and remediate damage to urban stop banks.

At the Annual Plan workshop in February, Council supported:

· The additional capital expenditure ($700,000) to be funded by a targeted rate, subject to support from the Rivers Scheme Advisory Group (RAG). In March, RAG indicated their support for this proposal

· The use of the Targeted Rates Reserve to fund the operating expenditure of $24,000.

Use of the Regional Fund Reserve for the remaining $6,000 operational expenditure was declined. It is proposed that the remaining $6,000 will be funded from existing budgets.

The 2023/24 budget has been updated to include the $700,000 capital expenditure funded through a targeted rate and $24,000 operational expenditure from the Targeted Rates Reserve.

3. Approved Service Improvement Proposals

The following SIPs were considered and approved by Council at the February Annual Plan workshop. In summary they were:

Project Name	Description	2023/24		Approved Funding Source
Project Name	Description	Opex	Capex	Approved Funding Source
Transport – Rotorua Refresh	To complete Rotorua refresh funding is required for an external project management resource and a promotional campaign to support the launch of the new network.	$70,000		Rotorua Transportation Reserve
Rotorua Airshed – support for homeowners to improve air quality	To support a small number of homeowners in the Rotorua Airshed to improve home heating options and to improve air quality	$50,000		$50k Rotorua Air Targeted Rate Reserve

4. Considerations

4.1 Risks and Mitigations

Risk and mitigations were considered when projects were considered through the Annual Plan workshop in February 2023.

4.2 Climate Change

Climate change impacts were considered when projects were considered through the Annual Plan workshop in February 2023.

4.3 Implications for Māori

Implications for Maori were considered when projects were considered through the Annual Plan workshop in February 2023.

4.4 Community Engagement

INFORM

Whakamōhio

To provide affected communities with balanced and objective information to assist them in understanding the problems, alternatives and/or solutions.

4.5 Financial Implications

If the recommendation is adopted by Council, will it result in:

If the answer is ‘no’ to both questions please select the dropdown option 1 and complete appropriately.

The financial implications are set out under the relevant sections of this paper.

5. Next Steps

Next Steps: What next? What resources are needed? Further analysis? Timeframes ahead. Any consultation planned. Remind Council of the process ahead. Next update to Council?

Conclusion: Short concluding remarks. Referring back to recommendations. No new content.

Direction from Council at this meeting will be incorporated into the draft Annual Plan 2023/24. This will be presented to Council for adoption in June 2023.



Report To:	Regional Council
Meeting Date:	25 May 2023
Report Writer:	Karlo Keogh, Finance Support Team Lead
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	This report sets out the updated financial estimates for the Draft Annual Plan 2023/24.

Annual Plan 2023/24 Deliberations: Financial Overview and Implications

Executive Summary

Council’s draft Annual Plan 2023/24 identifies operating expenditure of $186 million and capital expenditure of $30 million.

The current estimate of the total real rates revenue increase for 2023/24 is 5.2% comprising of:

• a general rates increase of 5.0%

• a targeted rates increase of 5.4%

These figures are based on guidance provided at Annual Plan 2023/24 Workshops in December 2022 and February 2023.

A number of Service Improvement Proposals (SIP) were presented to Council at the Annual Plan workshop held in February 2023. Councillors provided guidance for several of the proposals to be funded through reprioritisation. Where reprioritisation was identified, the proposals have been included in the latest of the Annual Plan estimates.

Key assumptions within the current Draft Annual Plan 2023/24 (DAP) are:

· Inflation at 6.7%

· Staff inflation adjusted per the Collective Employment Agreement.

Recommendations

That the Regional Council:

1 Receives the report, Annual Plan 2023/24 Deliberations: Financial Overview and Implications.

2 Includes the proposed targeted rates for the Minor Rivers and Drainage Schemes in the draft Annual Plan 2023/24 budget for adoption on 29 June 2023.

1. Introduction

Council’s draft Annual Plan 2023/24 (DAP) forecasts operating expenditure of $186 million and capital expenditure of $30 million.

The DAP capital expenditure has undergone a further deliverability review, following the February 2023 Annual Plan workshop.

The current estimate of the total real rates revenue increase (excluding inflation and growth) for 2023/24 is 5.2% comprising of:

· a general real rates increase of 5.0%

· a targeted real rates increase of 5.4%

These increases result from the guidance and direction given at the DAP Workshops in December 2022 and February 2023.

The Long-Term Plan 2021–2031 included the use of reserves to fund operating expenditure so that rates would be more affordable.

The DAP 2023/24 requires $3.8 million from the Regional Fund Reserve to maintain an increase in general rates of 5.0%.

1.1 Legislative Framework

Council is required to have an Annual Plan under section 95 of the local Government Act 2002. Information in this paper contributes to the development of the Annual Plan 2023/24.

1.2 Alignment with Strategic Framework

A Healthy Environment
Freshwater for Life
Safe and Resilient Communities
A Vibrant Region
The Way We Work	We deliver value to our ratepayers and our customers.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

¨ Social

¨ Economic

2. Draft Annual Plan 2023/24

2.1 Strategic Financial Context

2.1.1 Key Financial Issues, Risks, and Assumptions

Some of the key risks, issues, and assumptions in the current financial environment and DAP 2023/24 include:

· General inflation has increased faster than expected and to a higher level. The Consumer Price Index (CPI) is currently at 6.7% and has been included in the DAP 2023/24 at this rate.

· Increased costs for international shipping and reduced availability of some supplies may put further pressure on input prices.

· Interest rate increases to curb inflation will place further pressure on borrowers.

· Unemployment is lower than expected, and filling jobs with suitably qualified and experienced staff is becoming more difficult and may lead to higher wage inflation.

· Low unemployment and reduced availability of some goods/supplies may lead to more difficulty in securing contractors and consultants for work programmes.

2.1.2 Financial Levers 2023/24

The Bay of Plenty Regional Council Group Financial Framework Review identified the key funding and balance sheet levers available to Council which it can apply to achieve the best possible outcomes for the community and the region. The LTP 2021-2031 Financial Strategy sets out general principles which can help guide the evaluation of alternative options.

Council has considered all financial levers, and the potential impact of applying each lever on Council’s community outcomes and community wellbeing, and the current position for the DAP 2023/24 is as follows:

· There has been a reprioritisation of budgets, particularly within Public Transport and Spatial Planning to accommodate new cost pressures,

· An estimated increase in revenue of $2.6 million from the Quayside Holdings Limited (QHL) dividend has been signalled,

· A real general rates rise of 5.0% (which is 2.0% higher than that proposed in LTP 2021-2031 Year 3),

· Use of available Regional Fund reserves to limit rates rises, particularly for one-off costs.

2.2 Draft Annual Plan 2023/24 Budget

Underpinning the development of the DAP 2023/24 Budget is Council’s strategic priority of making the best use of resources to deliver its community outcomes, to promote wellbeing and support others to deliver community benefit.

The updated DAP 2023/24 budget includes estimated operating expenditure of $186 million.

Council has deliberately accumulated reserves over time which allows it to assist others to fund infrastructure, support our region’s recovery and adaptation to COVID-19, and charge lower rates to every property.

The key areas where reserves will be used to fund operating expenditure in 2023/24, are:

· Rotorua Lakes land use change incentives, to improve lake water quality ($1.8 million)

· Western Bay of Plenty Transport Plan ($2.2 million)

· Reducing general rates ($3.8 million).

A summary of the forecast reserves balances to 30 June 2023 is shown separately.

Table 1 below summarises the changes from Year 3 of LTP 2021-2031 to the DAP 2023/24 Budget.

Table 1: Draft Annual Plan 2023/24 Budget compared to Year 3 of LTP 2021-2031

2.2.1 Estimated Capital Expenditure 2023/24

Council plans for capital expenditure of $30 million in 2023/24. This estimate is supported by pre-existing third-party contractual arrangements in key areas including Council’s rivers and drainage and engineering activities.

It is intended to fund capital works through loans from the Local Government Funding Agency Limited (LGFA) (already in place) and using the accumulated funds in the Asset Replacement Reserve.

Attachment 1 provides a list of estimates for key capital expenditure projects in the DAP 2023/24.

2.2.2 Forecast Rates 2023/24

The planned rates increases over the next year reflect Council’s ongoing commitment to deliver more affordable rates through prudent financial management and sustainability.

Presently the updated 2023/24 DAP Budget includes a forecast total real rates revenue increase of approximately 5.2% (after deducting 1.25% for growth and 6.7% for inflation). This figure is 3.2% higher than the forecast for Year 3 of LTP 2021-2031 (2.0%).

The forecast real general rates revenue increase in the DAP is currently 5.0%, this is equivalent to $39 including GST for an average property.

In addition, Council forecasts a targeted real rates revenue increase of 5.4% which is 4.4% higher than the forecast in year 3 of the LTP 2021-2031. The impact on individual ratepayers depends on which targeted rates they are charged. The majority of the increases are in public transport targeted rates (due to increased costs for staffing and driver wages) and rivers and drainage schemes (due to increased interest costs).

There is a separate targeted rates reserve account for each targeted rate. The available balances can be used to smooth the respective targeted rates but cannot be applied to other targeted rates or general rates.

It is recommended that targeted rates smoothing be applied based on the following approach:

1. If a targeted rate has a real % increase and it has an estimated reserve balance, use the reserve balance to achieve a 0% real increase, where possible.

2. If a targeted rate has a real % decrease, then increase the targeted rate to at least 0% real.

The DAP 2023/24 Budget estimates include the recommended smoothing approach for targeted rates. Without any smoothing the real targeted rates increase would be 6.6% rather than 5.4%

Attachment 2 illustrates the impact of targeted rates smoothing on the individual targeted rates.

Through Council’s Arotake performance monitoring report, and informal financial briefing processes, staff and Councillors will continue to monitor the impact of financial and other risks on forecast rates, so the organisation remains able to respond to unforeseen events arising during the financial year.

Attachment 3 summarises the differences in forecast gross rates per district between Year 3 of LTP 2021-2031 and the DAP 2023/24 Budget by rating category.

2.2.3 Forecast General Reserves

Council decided in the 2021 – 2031 LTP to use reserves to fund specific work in the first three years to reduce the impact on ratepayers and $5 million was originally earmarked for 2023/24.

Based on the current DAP financial forecasts, applying Council’s financial levers including the QHL dividend increase, rate increases and reprioritisation of existing budgets, $3.8 million of the Regional Fund reserve will be required to fund council general operating expenditure.

The forecast balances of Council’s general operating reserves as at 30 June 2023 are discussed below.

Regional Fund and Equalisation Reserve

The purpose of Equalisation Reserve is to record surpluses/deficits from all General Funded activities. One of the purposes of the Regional Fund is to fund third party infrastructure projects. It is replenished through budgeted contributions from activities and is available for use by all activities.

The opening balance of the Regional Fund reserve for the 2022/23 financial year was $27.7 million. The forecast for the 2022/23 financial year shows the expected Regional Fund reserve balance as at 30 June 2023 to be $4.9 million.

Estimated expenditure planned to be funded from the Regional Fund reserve in the DAP 2023/24 budget (LTP Year 3) is:

• Rotorua Lakes Land Use Change Incentives - $1.8 million (Total $14.7 million in LTP Years 1-6).

• Western Bay of Plenty Transport Systems Plan - $2.2m (Total $7.2 million in LTP Years 1-6).

• Reduced impact on general rates- $3.8m (Total 12.0 million in LTP Years 1-3)

Taking into account the forecast contributions and withdrawals affecting the combined position of the Equalisation Reserves and Regional Fund over the next three years, the uncommitted reserve balance as at 30 June 2024 is expected to be $2.6 million.

Toi Moana Fund

The Toi Moana Reserve, with a face value investment of $70 million, is a general reserve which generates investment income.

Investment returns of 5% on this reserve have been included in the DAP estimates, and there are no expected withdrawals from the reserve in the DAP.

3. Submission for the Minor Rivers and Drainage Schemes

In line with annual practice, a submission has been received relating to the Minor Rivers and Drainage Schemes, Attachment 4. This sets out an updated table of recommended rates for the Minor Rivers and Drainage Schemes and is developed with the involvement of liaison people and/or caretakers from each of the communal pumping schemes (100% funded by targeted rates), who have endorsed the amended budget for 2023/24.

Overall, proposed targeted rates for 2023/24 are in line with targeted rates in 2022/23, and some schemes have sufficient balances at year end to not require a targeted rate for 2023/24.

Staff recommend the proposed targeted rates for the 37 minor schemes are included in the draft Annual Plan 2023/24 budget for adoption on 29 June 2023.

4. Considerations

4.1 Risks and Mitigations

There are no significant risks associated with this matter/subject/project/initiative.

4.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

4.3 Implications for Māori

The matters addressed in this report are of a procedural nature and there is no need to consider implications for Māori.

4.4 Community Engagement

What level of engagement is council commited to? What actions will be taken

Consider identifying in the report:

• Council’s knowledge of community views on the subject.

• What aspect of the community is involved.

• How the views of the community were obtained.

• How the views were recorded and reported.

INFORM

Whakamōhio

To provide affected communities with balanced and objective information to assist them in understanding the problems, alternatives and/or solutions.

4.5 Financial Implications

Please refer to the relevant analysis in the options paper attached.

5. Next Steps

Following deliberations at this Council meeting on 25 May 2023, staff will make any final updates approved by Councillors to the DAP 2023/24 and prepare the Annual Plan 2023/24 for adoption on 29 June 2023.

Attachments

Attachment 1 - DAP 2023-2024 - Capital Projects ⇩

Attachment 2 - DAP 2023-2024 - Targeted Rates Smoothing ⇩

Attachment 3 - DAP 2023-2024 - Rates by TA ⇩

Attachment 4 - DAP 2023-2024 - Minor Rivers and Drainage Schemes Proposed ⇩



Report To:	Regional Council
Meeting Date:	25 May 2023
Report Writer:	Olive McVicker, Corporate Performance Team Lead; Graeme Howard, Corporate Planning Lead and Kumaren Perumal, Chief Financial Officer
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	This paper seeks Council approval to redirect SmartGrowth funding from 2023/24 Annual Plan and Budget for a Mayoral Forum Independent Secretariat

Annual Plan 2023/24 Deliberations - Mayoral Forum Independent Secretariat

Executive Summary

The Bay of Plenty Mayoral Forum is considering the establishment of an independent secretariat. The purpose of this is to support the Mayoral Forum through the provision of research to assist in the decision making and governance issues.

It is proposed that Council utilise its portion (42%) of funding that SmartGrowth has carried forward from previous years funding. This amounts to $183,000. To facilitate this Council will reduce the SmartGrowth budget of $464,910 in the 2023/24 Annual Plan by $183,000 and will redirect these funds to a budget for the proposed Independent Secretariat.

Recommendations

That the Regional Council:

1 Receives the report, Annual Plan 2023/24 Deliberations - Mayoral Forum Independent Secretariat.

2 Gives direction to reallocate $183,000, which would otherwise have been part of Council’s SmartGrowth contribution, in 2023/24 to fund the Bay of Plenty Mayoral Forum Independent Secretariat.

1. Introduction

The Bay of Plenty Mayoral Forum acknowledges the increased workload in light of the Government’s current reform programme. This includes the Three Waters reform, the Future for Local Government Reform and the review and reform of the Resource Management Act. Mayors/Chair and Chief Executives will be key council representatives in responding to these reforms.

To assist with this workload the BOP Mayoral Forum is considering the establishment of an Independent Secretariat who reports to the Chair and Deputy Chair of the Mayoral forum. The funding for this is sought from the Bay of Plenty Regional Council.

1.1 Legislative Framework

Council is required to have an Annual Plan under section 95 of the local Government Act 2002. Information in this paper contributes to the development of the Annual Plan 2023/24.

1.2 Alignment with Strategic Framework

A Healthy Environment
Freshwater for Life
Safe and Resilient Communities
A Vibrant Region	We work with and connect the right people to create a prosperous region and economy.
The Way We Work

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

Low - Positive

þ Cultural

Low - Positive

þ Social

Low - Positive

þ Economic

Low - Positive

2. Funding BOP Mayoral Forum Independent Secretariat

The creation of an Independent Secretariat is under consideration by the Bay of Plenty Mayoral Forum. If the decision is made to proceed with this initiative the Forum will seek funding from Council.

To enable this it is proposed that BOPRC’s funding contribution to SmartGrowth is reduced by $183,000 for 2023/24, noting that SmartGrowth has underspent their budget in recent years. Because the draft budget for SmartGrowth is provided for within the overall Draft Annual Plan there is no further impact on the draft 2023/24 budget.

Details are shown in the table below.

Council	Council funding 2022/23		Proposed funding 2023/24*		Notes
Council	%	$	%	$	Notes
TCC	42%	$464,910	50%	$464,910
BOPRC	42%	$464,910	31%	$281,910	Funding reduced by $183k for secretariat
WBOPDC	16%	$177,108	19%	$177,108
Total	100%	$1,106,928	100%	$923,928

*Assumes the value of TCC and WBOPDC funding remains the same.

3. Considerations

3.1 Risks and Mitigations

There are no significant risks associated with this matter.

3.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

3.3 Implications for Māori

The matters addressed in this report are of a procedural nature and there are no implications for Māori.

3.4 Community Engagement

Engagement with the community is not required as the recommended proposal / decision [relates to internal Council matters only].

3.5 Financial Implications

If the recommendation is adopted by Council, will it result in:

If the answer is ‘no’ to both questions please select the dropdown option 1 and complete appropriately.

Financial implications are set out under section 2 of this paper.

4. Next Steps

Next Steps: What next? What resources are needed? Further analysis? Timeframes ahead. Any consultation planned. Remind Council of the process ahead. Next update to Council?

Conclusion: Short concluding remarks. Referring back to recommendations. No new content.

Direction from Council at this meeting will be incorporated into the final draft Annual Plan 2023/24 that is planned to be presented to Council for adoption in June 2023.



Report To:	Regional Council
Meeting Date:	25 May 2023
Report Writer:	Graeme Howard, Corporate Planning Lead and Olive McVicker, Corporate Performance Team Lead
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	This report seeks Council direction on a funding application to the Community Initiatives Fund (CIF) received as part of the Annual Plan process.

Annual Plan 2023/24 Deliberations - Community Initiatives Fund application - Taking Back Our Beach

Executive Summary

This report seeks Council direction on a funding application to the Community Initiatives Fund (CIF) received as part of the Annual Plan process.

· Taking back our Beach –application for $50,000 to support the completion of a feature film documentary that looks at the Bay of Plenty community response to the 2011 MV Rena grounding.

Recommendations

That the Regional Council:

1 Receives the report, Annual Plan 2023/24 Deliberations - Community Initiatives Fund application - Taking Back Our Beach.

2 Direct staff to allocate funding to the Rena Film Documentary - Taking Back Our Beach of either:

(a) $50,000 in 2023/24, to be funded via the existing Community Initiatives Fund budget; or

(b) funding of a lesser amount as directed by Councillors, funded via the existing Community Initiatives Fund budget; or

1. Introduction

In September 2022, Council received an enquiry regarding a potential funding request to contribute to a film documentary on the community response to the 2011 MV Rena grounding. Council has previously provided a sponsorship contribution to the project totalling $7000.

In late 2022, the applicant was advised that for any additional funding to be considered that they should complete an application to the Community Initiatives Fund. This application was received in May 2023 and is included as Attachment 1.

1.1 Legislative Framework

Council does not have any legislative requirements to provide funding to community groups, but the work and services provided by those groups may contribute to Council Outcomes.

1.2 Alignment with Strategic Framework

A Healthy Environment
Freshwater for Life
Safe and Resilient Communities
A Vibrant Region	We work with and connect the right people to create a prosperous region and economy.
The Way We Work

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

Low - Positive

þ Cultural

Low - Positive

þ Social

Low - Positive

þ Economic

Low - Positive

2. Rena Film Documentary - Taking Back Our Beach

Council has received a funding application (Attachment 1) to the Community Initiatives Fund for $50,000 to contribute to a film documentary on the community response to the 2011 MV Rena grounding.

The film has received funding from a range of sources and is essentially complete, however additional funding is required to help pay for the final touches to the film before it is able to be released in cinemas in October 2023.

The applicant applied for a post-production grant from the NZ Film Commission to fund these remaining costs, however this was unsuccessful due to limited funding being available and contested by many productions.

The film has been selected for the 2023 Doc Edge Festival - a premiere documentary festival in the Asia Pacific Region - with a cinema release focused on the Bay of Plenty region planned for October 2023 on the 12^th Anniversary of the grounding.

2.1 Funding options

Council’s primary source of funding this type of project is via the Community Initiatives Fund (CIF). The CIF currently has $25,000 funding unallocated in 2022/23 and 2023/24[1]. Should Council decide to fund this CIF application, it is proposed that the unallocated funding CIF funding be applied to this project.

Councillors are requested to direct one of the following options for incorporation into the draft LTP for adoption:

1. Approve the application in full ($50,000 in 2023/24), to be funded via the existing Community Initiatives Fund budget;

2. Approve partial funding of the application to an amount directed by Councillors, to be funded via the existing Community Initiatives Fund budget;

3. Decline the funding application;

Please note that any funding allocation will be subject to a funding agreement being agreed and signed by both parties.

3. Considerations

3.1 Risks and Mitigations

There are no significant risks associated with this matter.

3.2 Climate Change

This film encourages the viewer to be more conscious of their effect on the world around them.

3.3 Implications for Māori

The application notes that the film demonstrates and celebrates multiple Iwi and Pākehā community groups working together for a united purpose. The film ‘Taking Back Our Beach will educate the Bay of Plenty Community (and beyond) on how effective we can be when we work together.

3.4 Community Engagement

Engagement with the community is not required as the recommended proposal / decision [relates to internal Council matters only].

3.5 Financial Implications

If the recommendation is adopted by Council, will it result in:

If the answer is ‘no’ to both questions please select the dropdown option 1 and complete appropriately.

Financial implications are set out under section 2 of this paper.

4. Next Steps

Next Steps: What next? What resources are needed? Further analysis? Timeframes ahead. Any consultation planned. Remind Council of the process ahead. Next update to Council?

Conclusion: Short concluding remarks. Referring back to recommendations. No new content.

Direction from Council at this meeting will be incorporated into the final draft Annual Plan 2023/24 that is planned to be presented to Council for adoption in June 2023.

Funding applicants will be informed of decisions following Council deliberations and if appropriate, contracts will be arranged for the provision of funding.

Attachments

Attachment 1 - 2023-24 CIF Application Form RENA DOCUMENTARY ⇩



Report To:	Regional Council
Meeting Date:	25 May 2023
Report Writer:	Olive McVicker, Corporate Performance Team Lead; Kumaren Perumal, Chief Financial Officer; Mathieu Sabas, Performance Analyst; Karlo Keogh, Finance Support Team Lead and Mark Le Comte, Principal Advisor, Finance
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	To provide financial and non-financial results for the nine months ended 31 March 2023.

Financial and Non Financial Performance Report - Arotake: Nine Months to 31 March 2023

Executive Summary

The Arotake report summarises Council’s performance for the period 1 July 2022 to 31 March 2023. The report includes:

· Service delivery summary

· Financial summary

· Corporate summary

Recommendations

That the Regional Council:

1 Receives the report, Financial and Non Financial Performance Report - Arotake: Nine Months to 31 March 2023.

2 Confirms the public be excluded on the grounds set out in the Local Government Official Information and Meetings Act 1987 from consideration of the following report attachment:

(a) Bancorp Report March 2023 under Section 48(1)(a)(i) Section 7 (2)(b)(ii) as withholding the information is necessary to protect information where the making available of the information would be likely to unreasonably prejudice the commercial position of the person who supplied or who is the subject of the information and that this attachment remain in Public Excluded.

1. Introduction

The report provides an overview of Council’s performance for the nine months ended 31 March 2023.

The report has been included as Attachment 1 to this report and includes the following:

· Highlights for the quarter, including progress against our three impact areas of climate change, partnerships with Māori, and community engagement

· Service delivery performance results

· Financial performance, including operating and capital expenditure, key budget variance analysis, forecast reserves and an update on Treasury performance including investments and borrowings

· Staff headcount, full time employee (FTE) information

· Health and safety information

1.1 Alignment with Strategic Framework

A Healthy Environment
Freshwater for Life
Safe and Resilient Communities
A Vibrant Region
The Way We Work	We deliver value to our ratepayers and our customers.

1.1.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

þ Social

¨ Economic

In providing information to the public about Council’s performance, the Arotake report primarily contributes to social wellbeing in creating a well-informed local electorate.

2. Highlights

2.1 Climate Change

The Tourism Bay of Plenty Low Carbon Programme continued with the second tranche of local tourism operators graduating from the 12-week ‘Green Room’ programme. This programme seeks to assist local tourism operators create a more sustainable tourism sector. The goal is for 100 businesses to go through the programme. To date 28 have completed the programme with a further 12 currently in training.

The assessment and mapping of potential saltmarsh habitat restoration sites in the region has been completed. This work is part of a wider project exploring the potential of Blue Carbon in the region and will include the planned work to validate local carbon sequestration rates of saltmarsh. The restoration of saltmarsh habitats will support biodiversity restoration, water quality outcomes, and carbon sequestration.

The Maketu Climate Change Adaption Plan has been finalised. This is the first Community-led Adaption (CLAF) project to be completed. The development of this plan was let by the Maketū Iwi Collective and developed with and by the community. This is the first of six projects to be funded through Council’s Community-let initiative.

Council internal emissions monitoring through the Toitu Carbon Reduce programme will end this financial year. This programme has been critical in developing our understanding of the Bay of Plenty Regional Council’s carbon emissions and started out path towards reduction. Since 2019, our total carbon emissions have reduced by 8.3%.

2.2 Partnerships with Māori

The Kaimai Kaponga project focusses on holistic pest control over a large area in the Kaimai-Mamaku ranges. This is the first-time iwi have formally been involved in the restoration of their maunga (mountain) through the Wallaby programme. This is a Tura Ngāti Te Ngākau led project who work alongside Regional Council to support the wallaby control aspirations.

Tūhourangi Tribal Authority have completed a series of Wānanga on Te Mauri o Te Wai, which is a central component of the NPS-FM. Through this they have produced a report providing guidance to Toi Moana on their freshwater values and aspirations and alignment with the Regional Plan and NPS-FM. Alongside this they have identified ongoing opportunities to work in partnership with Council to build capability and capacity in these areas.

2.3 Community Participation

School Sustainability and Resilience fund has received applications for the second round of funding as part of the Participatory Budgeting initiative. A total of 37 applications was received requesting funding of $147,000. The funding round closed on 31 March 2023 and applications are currently being assessed.

Regional Safety and Rescue Service fund has provided funding to the Rotorua Mountain Bike Club to support the emergency response to incidents on the mountain bike trails. In the period October 2022 to January 2023 the club responded to 90 incidents. Approximately 50% of these incidents were patients based in the Bay of Plenty.

The implementation of the Youth Action Plan continued. This included the partnership with EastBay REAP to support a freshwater programme (Wai Ora), support to the Noho Marae event for the Instep Young Leaders and assisting with the Sea Week event in Ōhope.

2.4 Service Delivery Highlights

· 98% of non-notified consents were issued within the statutory timeframe for this quarter

· All flood warnings were given in accordance with the flood warning manual.

3. Financial Performance

For the nine months ending 31 March 2023, Council is forecasting a year end operating deficit of $7.5 million, which is $7.2 million lower than planned. This is due to operating revenue being $1 million higher than budget and forecast operating expenditure $6.2 million lower than planned.

Council is forecasting capital expenditure of $23.1 million which is $19.4 million lower than the revised budget of $42.5 million. Key reasons are due to project delays in the Rangitāiki-Tarawera and Whakatāne-Tauranga Catchments ($11.3 million) and timing & procurement related issues with the Waterfront Development and Quay St West Wing Refurbishment ($4.6 million).

3.1 Treasury

The total investment portfolio is $239.1 million comprising term deposits $65 million, call accounts / working capital $46 million, Toi Moana Trust $70 million, Quayside (on-lend) $58.1 million.

Council has borrowed $220.1 million from Local Government Funding Agency (LGFA) with $58.1 million on-lent to Quayside. $137 million has been borrowed to fund capital expenditure. A further $25 million has been borrowed and invested to pre-fund capital expenditure through 2023/24. This is less than the Long Term Plan forecast for 2022/23 of $146 million.

Confidential Attachment 2 Bancorp Monthly Treasury Report March 2023 provides further details of Council’s treasury performance.

4. Considerations

4.1 Risks and Mitigations

There are no direct risk implications arising from this report.

4.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

4.3 Implications for Māori

There are no implications for Māori arising from this report.

4.4 Community Engagement

Engagement with the community is not required.

4.5 Financial Implications

There are no material unbudgeted financial implications and this fits within the allocated budget.