Agenda of Regional Council Meeting - Wednesday, 29 November 2023

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 29 November 2023

Subject: Draft Revenue and Financing Policy for consultation

1. In its 2021-2031 Long Term Plan, the Council signalled its intention to review its Revenue and Financing Policy.

2. Following an extensive 18-month review, this report asks Council to adopt its Draft Revenue and Financing Policy and related documents for consultation. The scope of the review (step one and step two) is outlined in the section entitled Prescribed process.

Officers’ recommendations

3. Staff recommend that council adopts the following documents for consultation:

3.1. Draft Revenue and Financing Policy

3.2. Draft Rates Remission and Postponement policies

3.3. Your Community Your Rates – Consultation Document

3.4. Supporting information document including:

3.4.1. sample properties for comparison of rates

3.4.2. maps of proposed changes to the rating areas

3.4.3. explanation of rating methods.

Executive Summary

4. Under the Local Government Act 2002 (LGA), Council must have a Revenue and Financing Policy (R&F Policy). The Council’s policy is overdue for review, and it has signalled to ratepayers that a review will be undertaken before the next long-term plan.

5. The objectives of the review are to:

5.1. improve transparency for who pays what

5.2. ensure legal compliance and good practice, and

5.3. simplify the policy.

6. The review process must follow the requirement of the two steps set out in the LGA including formal consultation.

7. On 28 September 2022, the Council adopted the step one funding needs analysis. This was the culmination of five workshops held between 1 June and 24 August 2022, to assess each of the separately identified activities against the requirements in step one.

8. Between 31 May and 11 October 2023, the newly elected Council considered the step one outcomes and went on to apply the step two tests for each activity culminating in the attached proposed Revenue and Financing Policy for consultation. It also considered changes to its Rates Remission and Postponement policies resulting from the review.

9. To support an informed community debate, a consultation document (CD) entitled Your Community Your Rates has been drafted which spells out in simple words what the major changes mean for ratepayers, with further information such as rates for sample properties and maps showing changes to rating footprints being available in a Supporting Information document.

10. It is proposed that the Council adopts the draft policies and the consultation material today and consults on this for 8-weeks from 1 December 2023 to 28 January 2024. An engagement campaign including targeted letters to the most affected ratepayers, supported by normal channels - social media, etc, - will be implemented to encourage a wide range of views to support final rating changes. Public hearings are scheduled to be held on 13-14 February 2024 followed by a final decision on 28 February 2024.

Background

11. In order to provide predictability and certainty about sources and levels of funding, Council is required to have a Revenue and Financing Policy (as well as other funding and financial policies) and it must consult on major changes to the policy.

12. The policy is important because it underpins the various funding mechanisms that Council uses to funds its activities. By defining the various rates, it enables Council to set the rates and collect its rates revenues each year.

13. Sector advice states it is good practice to review revenue and financing policies approximately every ten years on a first principles basis. This is because over time, ad hoc changes can result in the overall policy not delivering the optimum outcome for Council and the community.

14. The Council’s current policy has evolved over time with a number of small changes made over the last four long term plans but without a review of all components (and the relativity between activities).

15. The council signalled in its most recent long-term plan that it would be reviewing its Revenue and Financing Policy. A specific undertaking was given to review the Upper Tukituki targeted rates.

Scope of the review

16. The review is not an assessment of the adequacy of current spend or the existing levels of service, nor is it a review of Council’s Financial Strategy which describes Council’s broad funding principles and sets debt and rates limits.

17. The review is confined to how existing activities and levels of services are funded. This includes rates, fees and charges and rates remission and postponement policies.

18. Potential future activities, such as coastal hazard implementation, are also out of the scope of this review.

19. The objectives of the review are to:

19.1. improve transparency for who pays what

19.2. ensure legal compliance and good practice

19.3. simplify the policy.

20. The current policy is administratively complex – there are 117 rating factors in the 2023-24 FY, with 82 of these relating to flood, drainage and rivers and stream maintenance schemes. Through this review, we have managed to reduce the number of rating factors to 48. Of the 48, 23 are unchanged and 25 have been simplified.

Timing of the review

21. A first principles rating review generally takes 12-18 months due to its complexity and the volume of technical material to cover. The review was timed to fall between long term plans (LTPs) to enable ratepayers to distinguish between impacts from the policy change, versus impacts from level of service or cost changes. In addition, rating reviews can be controversial because changing the way rates are assessed always means there are winners and losers which can up-stage the LTP consultation.

22. It was agreed by Council to complete step one before the local government elections in October 2022. The new Council was tasked with reviewing the step one analysis and either reconfirming or amending it, and then completing step two with the aim to consult on the policy, together with any new or amended rates in October 2023.

23. Despite cyclone disruption, the project has been delivered largely on schedule, with consultation two months later than planned, but still in time to land prior to consultation on the 2024-2027 Long Term Plan.

Prescribed process

24. The process to review the policy is prescribed in the LGA. Section 101(3) LGA requires the Council to develop the policy in two steps. In the first step, it must consider in relation to each activity to be funded the following:

24.1. Community outcomes to which the activity primarily contributes

24.2. Distribution of benefits – who gets the benefit the whole/part of community or individuals?

24.3. The period the benefits are expected to occur

24.4. Extent that actions or inactions contribute to the need to undertake the activity (exacerbators)

24.5. Costs and benefits of funding the activity separately from other activities.

25. The process of working through the step one assessment is an iterative one and the rationale for the choices made must be documented. This rationale is captured in the Step One: Funding Needs Assessment (see the Appendix to the R&F Policy).

26. Step two of the R&F Policy review requires the Council to consider the results of step one and (if required) modify the allocation of tools that were identified in step one based on the overall impact of any allocation of liability for revenue needs on the current and future social, economic, environmental, and cultural wellbeing of the community. This involved modelling the cumulative impact of step one outcomes overlaid with direction on Targeted Rate and/or General Rate differentials, choice of rating system for the General Rate (Land Value vs Capital Value) and agreeing how to set the UAGC.

27. An important philosophy throughout the review has been that nothing is agreed until everything is agreed.

28. The table below summarises the robust review process.

Date	Content covered	Activities covered
1 June 2022	This was an introduction to the project including scope and timeline. It covered the reasons for the review including issues with the current policy, an overview of the legal requirements under s101-103 of the LGA, mandatory process steps, an introduction to terminology, economic concepts and tools to be used throughout 18-months review. It applied the activity template to the first of 34 sub-activities.	Step 1 outcomes discussed for: 1. Hawke’s Bay CDEM Group
15 June 2022	This workshop and the next three followed the same pattern as the first, to complete the activity template for Step 1, starting with the 2022-23 FY opex and capex for context. The activity template included: • What is the Activity? e.g. HBRC Emergency Management • Which Community Outcome does it primarily contribute to? • Who Benefits? (Community as whole, part or individuals) • What is the Period of Benefit? • Whose actions create a need? (action or inaction) • Are there benefits from funding the activity separately? • What is the rationale for an allocation of funding? (between individuals, part or all of the community) • What proportion is paid by who? (rough % as a starting point) • What are the potential funding sources for operational expenditure? • What are the potential funding sources for capital expenditure?	Step 1 outcomes discussed for: 2. HBRC Emergency Management 3. Consents 4. Community Representation & Leadership 5. Tangata whenua partnerships 6. Community Sustainability
6 July 2022		Step 1 outcomes discussed for: 7. Environmental Information 8. Environmental Science 9. Catchment Management 10. Soil Conservation Nursery 11. Erosion Control Scheme\Land for Life 12. FEMPS 13. Biodiversity 14. Primary Production Pests
10 Aug 2022		Step 1 outcomes discussed for: 15. Open Spaces 16. Regional Water Security 17. Coastal Hazards 18. Westshore Beach Erosion 19. Compliance 20. Policy Planning & Implementation 21. River management, investigations and public advisory services 22. Flood Risk Assessment and Warning 23. Forestry
24 Aug 2022		Step 1 outcomes discussed for: 24. Gravel Management 25. Flood Protection and control works 26. Drainage (flood pumping & gravity) 27. River & Stream Maintenance 28. Pollution response 29. Maritime Safety 30. Sustainable Homes 31. Regional Economic Development 32. Transport Planning and Road Safety 33. Passenger Transport Also looped back on consents to discuss how to fund non-recoverable work.
28 Sep 2022	Council meeting to debate and agree Step 1.	Funding Needs Assessment adopted by Council
31 May 2023	Recap of Step 1 to introduce new councillors to the R&F Policy work and outcomes to date (Step 1 as above). The Step 2 process was described.
7 June 2023	The purpose of this workshop was to • Understand the differences between land and capital values • Options for setting the Uniform Annual General Charge (UAGC) • Introduction of the requirements for using and setting Targeted Rates • Using Passenger Transport and Regional Economic Development, create two new targeted rates (example only) identifying matters and factors • Limitations of UAGC and uniform targeted rates – 30% cap • Consider the principles of Capital Value (CV) versus Land Value (LV) • Summary of what still is to be done	Ensured that councillors were comfortable with the terms being used and the options available.
28 June 2023	This workshop and the following two looked at specific targeted rates by activity and discussed the rating tool options. For each activity, we: • Recapped existing rating approach (from current RFP) • Recapped direction set in Step 1 • Discussed new scenarios and impacts including consistency of percentage splits, CV or LV for targeted rates, and combining classes to simplify. Modelled impacts were shown as averages for urban, commercial and rural by local HB Council area and for the sample properties used in annual plans. Outliers were also shown.	Step 2 outcomes discussed for: • Sustainable Homes / Clean Heat • Economic Development Subsidised Transport
26 July 2023		• Rivers & Streams • CDEM/HBRC EM • Regional Economic Development
9 Aug 2023		• Flood Protection schemes
30 Aug 2023	Final wash up of activities and non-s36 RMA Fees & Charges.	 Sustainable Land Management and Biodiversity, including pest control with biodiversity benefits.  Primary Production Pests  Consents, Compliance & Maritime Safety
13 Sep 2023	Discussed the cumulative modelled impact (excluding fees and charges) It also proposed minor changes to existing rates remission/ postponement policies and discussed the introduction of two new ones:  Hardship as a result of changes to the rating system  Sustainable Homes debt recovery
20 Sep 2023	Discussed methodology for s36 charges for Environmental Information and Science
27 Sep 2023	Next iteration of the cumulative modelled impact (including fees and charges).
11 Oct 2023	Reviewed early draft R&F Policy and Rates Remission policies and consultation material
15 Nov 2023	Reviewed draft policies (post-independent legal review) and consultation material.

Principles

29. As noted on page 2 of the R&F Policy, the following principles applied throughout the review:

29.1. Clear and fair – so ratepayers can understand how the source of funding was chosen and who it applies to.

29.2. Simple – for a rates invoice that is easy for ratepayers to understand as well as administratively efficient for Council staff to implement. This saves costs for the community and reduces the risk of errors.

29.3. Consistent – a policy that treats like for like to give the community confidence they are being treated fairly.

29.4. Flexible – a fit for purpose policy that is robust enough to avoid regular amendment but flexible enough to adapt to future changes.

29.5. Overall impact – the council considers the overall impact on the current and future social, economic, environmental, and cultural wellbeing of the community and community outcomes.

30. In addition to the matters above, Section 102(3A) of the Local Government Act 2002 requires that the Revenue and Financing Policy also supports the principles set out in the Preamble to Te Ture Whenua Māori Act 1993, including:

30.1. the special relationship between the Māori people and the Crown.

30.2. the spirit of the exchange of kāwanatanga for the protection of rangatiratanga embodied in the Treaty of Waitangi be reaffirmed.

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

30.4. promotion of the retention of that land in the hands of its owners, their whānau, and their hapū, and to protect wahi tapu.

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

Proposed Revenue and Financing Policy

31. Attached to this document is the draft R&F Policy. Its format and the content are significantly different to the existing policy. The format of the draft policy closely follows the legal requirements set out in the LGA and has been restructured to be more readable, understandable and useable.

32. Changes to the content of the policy are highlighted for consultation purposes using text boxes. Red boxes for major changes that feature as a consultation topic in Your Community Your Rates consultation document, and green text boxes for other changes.

Key changes

33. There are five key consultation topics featured in Your Community Your Rates consultation document with associated tick boxes in the submission form. However, the whole policy is open to feedback. The five key topics are:

33.1. The proposal to move from land value to capital value for the general rate

33.2. Regional economic development rate proposal

33.3. Flood protection and drainage schemes proposal

33.4. Passenger transport rate proposal

33.5. Freshwater science charges and new targeted rate proposal

33.6. sustainable land management and biodiversity and biosecurity proposal.

34. The consultation document uses tables, graphs, and examples to describe the impact of each proposal, and the cumulative impact. The consultation document also describes advantages and disadvantages of the proposed changes.

Supporting information

35. Further information on the cumulative impacts and key consultation topics is available to the public in the Supporting Information document. This includes:

35.1. Sample properties for comparison of rates – these cover a range of categories across the region including commercial/industrial, residential, and rural. These properties are included in the Annual Plan, however, for the purpose of this review we have extended the number of properties from 21 to 27 to broaden the sample of rural properties. The tables show a ‘current’ and ‘proposed’ total rates based on 2023-2024 budgets.

35.2. Maps of proposed changes to the rating areas – where changes have been made to the rating ‘footprint’, or rating classes with differential rates have been simplified, the existing and proposed areas have been presented with an explanation of the proposed changes.

35.3. Explanation of rating methods – as per the Long-Term Plan and Annual Plan, the explanation of rating methods has been included. This only explains the changes to the rating methods. For comparison with the full suite of current rating methods, these are outlined in pages 44 to 52 of the 2023-2024 Annual Plan.

Rates remission and postponement policies

36. As a result of the review of the R&F Policy, minor improvements have been made to our existing rates remissions and postponement policies and two new ones are proposed for:

36.1. Hardship resulting from changes to the rating system

36.2. Postponement of Sustainable Homes Voluntary Targeted Rate (to enable full debt recovery)

37. The Draft Rates Remissions and Postponement Policies is a separate document open for consultation concurrently with the Draft R&F Policy. The proposed changes and the reasons for the changes are covered on page 20 of Your Community Your Rates consultation document.

Communications and Engagement Plan for consultation

38. Consultation will run for eight weeks from Friday 1 December 2023 to Sunday 28 January 2024.

39. A full communication and engagement plan has been developed. This includes:

39.1. Key objectives and key messages

39.2. Target audience is all ratepayers and the marketing and communication channels have been planned to be as broad as possible, while also being cost-effective. They are:

39.2.1. Traditional media – media releases, print advertising community papers, poster boxes

39.2.2. Digital media – social media, digital advertising, email, website, online submission form, QR code

39.3. Key groups of ratepayers have been identified to receive a targeted communication – either by email or mailed letter. These include:

39.3.1. Sector organisations such as Federated Farmers, Beef & Lamb etc

39.3.2. Treaty partners

39.3.3. Freshwater science consent holders

39.3.4. Individual ratepayers identified by staff as being amongst the most impacted (around 900 in total).

40. The consultation site will be available on hbrc.govt.nz, search: #haveyoursay. It will also include Frequently Asked Questions and a telephone number to call for further information if required.

41. Hearings are planned for 13-14 February 2024.

Strategic Fit

42. The Revenue and Financing Policy sets out how Council proposes to fund its activities. It underpins the values of accountability and transparency in Council’s Strategic Plan 2020-25, namely:

42.1. Accountability – we hold ourselves accountable to deliver results, be responsive to community expectations, and the best use of ratepayers’ funds and assets.

42.2. Transparency – we report on what we do and the value this delivers to our community.

43. It is important that this policy is reviewed on a regular basis to ensure we practice these values.

Significance and Engagement Policy Assessment

44. Staff have assessed this the changes proposed to our Revenue and Financing Policy against the Council’s Significance and Engagement Policy and have concluded that they are significant and warrant consultation.

Financial and resource implications

45. The LTP provides a budgetary provision to support the Revenue and Financing Policy review including consultation. Consultation is expected to cost $15,000. This is within existing budgets.

Legal implications

46. Section 102 (2) (a) LGA requires the Council to have a Revenue and Financing Policy.

47. Section 101 (3) LGA sets out the process on how a local authority should decide who should pay including specifying the two-step process.

48. Section 103 details disclosure requirements of a Revenue and Financing Policy.

Decision-making process

49. Council and its committees are required to make every decision in accordance with the requirements of the Local Government Act 2002 (the Act). Staff have assessed the requirements in relation to this item and have concluded:

49.1. The decision is significant under the criteria contained in Council’s adopted Significance and Engagement Policy.

49.2. The decision does not significantly alter the service provision or affect a strategic asset.

49.3. The use of a consultation process is required by legislation under s102(4).

49.4. The decision to consult is not inconsistent with an existing policy or plan. If Council decides to adopt the changes proposed in the draft policy, it will replace the existing policy.

49.5. The persons directly affected by this decision are all of the Hawke’s Bay community.

Recommendation

That Hawke’s Bay Regional Council:

1. Receives and notes the Draft Revenue and Financing Policy for consultation staff report.

2. Adopts the following documents for public consultation for eight weeks from 1 December 2023 to 28 January 2024:

2.1. Draft Revenue and Financing Policy

2.2. Draft Rates Remission and Postponement policies

2.3. Your Community Your Rates – Consultation Document

2.4. Supporting Information document including:

2.4.1. sample properties for comparison of rates

2.4.2. maps of proposed changes to the rating areas

2.4.3. explanation of rating methods.

3. Delegates to the Chief Financial Officer final approval of any further minor editorial changes to the draft policies, consultation document and supporting information prior to it being made available for public consultation.

Authored by:

Desiree Cull

Strategy and Governance Manager

Sarah Bell

Team Leader Strategy and Performance

Vanessa Fauth

Finance Manager

Beth Postlewaight

Workstream Lead - Property & Rates Project

Approved by:

Chris Comber

Chief Financial Officer

Attachment/s

1 ⇨	Draft Revenue and Financing Policy	Under Separate Cover
2 ⇨	Draft Rates Remission and Postponement Policies	Under Separate Cover
3 ⇨	Your Community Your Rates Consultation Document	Under Separate Cover
4 ⇨	Supporting Information Document	Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 29 November 2023

Subject: Councillors' remuneration

Reason for Report

1. This item provides the means for Council to resolve the remuneration of councillors for the period from 26 October 2023, for application to the Remuneration Authority for an amended determination for Hawke’s Bay Regional Council.

Officers’ recommendations

2. Council officers recommend that councillors consider whether the additional compensation for members with additional responsibilities is adequate in the new circumstances of there being six positions of additional responsibility (adding the HBRIC councillor director role) while retaining the base salary for councillors (four) at $61,000 per year and resolve accordingly for application to the Remuneration Authority.

Executive Summary

3. With the election of a new Chair of the Corporate and Strategic Committee, it is necessary to apply to the Remuneration Authority for an amendment to the remuneration of HBRC councillors to include the role of HBRIC councillor director. This is due to the Council’s Policy on Appointment and Remuneration of Directors (attached) which states:

3.1. Councillor directors are to be paid for their director duties only if they are not already remunerated for higher duties as Council committee chairs or Council Chairperson or Deputy, and in such event are to be paid for the difference between a base councillor salary and that of a Council committee Chair.

Background /Discussion

4. This Council’s remuneration levels for the 2023-2024 financial year, under the Local Government Elected Members’ Determination 2023-24 were:

4.1. Chairman’s salary $142,761 per annum adjusted for vehicle use (not included in the Remuneration Pool)

4.2. $61,000 per annum as the base salary for a councillor with no additional responsibilities; currently councillors Xan Harding, Thompson Hokianga, Charles Lambert, Jock Mackintosh, and Di Roadley

4.3. The remainder of the pool ($244,000) distributed evenly between positions of responsibility at $67,860 per annum, currently being:

4.3.1. Cr Will Foley – HBRC Deputy Chair

4.3.2. Cr Sophie Siers – Chair, Cyclone Recovery Committee (CRC)

4.3.3. Cr Neil Kirton – Chair, Corporate and Strategic Committee (C&S)

4.3.4. Cr Martin Williams – Chair, Regional Transport Committee (RTC)

4.3.5. Cr Jerf van Beek – Chair, Clifton to Tangoio Coastal Hazards Strategy Joint Committee (Coastal JC).

5. With the election of Xan Harding to the role of Chair of the Corporate and Strategic Committee and to take account of the Appointment and Remuneration of Directors Policy, it is now proposed that an application is made to the Remuneration Authority to include HBRIC Councillor Director as a role with additional responsibilities necessitating higher remuneration.

Options assessment

6. The options Council is able to consider include:

6.1. retaining the base councillor salary at $61,000 pa and splitting the remainder of the remuneration pool evenly between six positions of additional responsibility; representing an additional $5,717pa each for those six roles.

6.2. retaining the current $6,860 pa difference for remuneration for six (was 5) positions of additional responsibility and reduce the base councillor salary to $60,314.20 pa to allocate the total remuneration pool.

Financial and resource implications

7. There are no financial implications for Council by amending the remuneration paid to councillors as the total pool is set by the Remuneration Authority and Council is required to allocate its entirety.

8. The financial implications are for the individual councillors and may, depending on which option is chosen, impact all councillors except the Chair (whose remuneration is set separately).

Decision-making process

9. Council and its committees are required to make every decision in accordance with the requirements of the Local Government Act 2002 (the Act). Staff have assessed the requirements in relation to this item and have concluded:

9.1. The decision does not significantly alter the service provision or affect a strategic asset, nor is it inconsistent with an existing policy or plan.

9.2. The use of the special consultative procedure is not prescribed by legislation.

9.3. The decision is not significant under the criteria contained in Council’s adopted Significance and Engagement Policy.

9.4. The persons affected by this decision are councillors.

9.5. Given the nature and significance of the issue to be considered and decided, and also the persons likely to be affected by or have an interest in the decisions made, Council can exercise its discretion and make a decision without consulting directly with the community or others having an interest in the decision.

Recommendations

That Hawke’s Bay Regional Council:

1. Receives and considers the Councillors’ remuneration staff report.

2. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy, and that Council can exercise its discretion and make decisions on this issue without conferring directly with the community or persons likely to have an interest in the decision.

3. Submits an application to the Remuneration Authority for an amended Determination for HBRC that retains the $61,000 per annum base councillor remuneration and six positions of additional responsibility (from 26 October 2023) paid an additional $5,717 pa for:

3.1. HBRC Deputy Chair (Will Foley)

3.2. Chair, Corporate & Strategic Committee (Xan Harding)

3.3. Chair, Environment & Integrated Catchments Committee (Sophie Siers)

3.4. Chair, Regional Transport Committee (Martin Williams)

3.5. Chair, Clifton to Tangoio Coastal Hazards Strategy Joint Committee (Jerf van Beek)

3.6. HBRIC Ltd Councillor Director (Neil Kirton).

Authored by:

Leeanne Hooper

Team Leader Governance

Approved by:

Nic Peet

Chief Executive

Attachment/s

1 ⇩	2023 Councillor Rem calculator retain 61k base
2 ⇩	2023 Councillor Rem calculator with lower base
3 ⇩	HBRIC Ltd councillor director role description

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 29 November 2023

Subject: Affixing of Common Seal

Reason for Report

1. The Common Seal of the Council has been affixed to the following documents and signed by the Chair or Deputy Chair and Chief Executive or a Group Manager.

Seal No.

Date

1.1

Leasehold Land Sales

1.1.1 Lot 151

DP 6598

CT C2/353

- Agreement for Sale and Purchase

4575

17 November 2023

1.2

Staff Warrants

1.2.1 J. Familton

(Delegations under Resource Management Act 1991 (Sections 34A(1) and 38(1); Soil Conservation and Rivers Control Act 1941; Land Drainage Act 1908; Civil Defence Emergency Management Act 2002 (s.86-92) and Local Government Act 2002 (s.177))

1.2.2 M. Goodall

(Delegations under Soil Conservation and Rivers Control Act 1941; Land Drainage Act 1908

1.2.3 S. Briggs

(Delegations under the Civil Defence Emergency Management Act 2002 (s.86-92 inclusive)

4572

4574

4573

30 October 2023

14 November 2023

2. The Common Seal is used twice during a Leasehold Land Sale, once on the Sale and Purchase Agreement and once on the Land Transfer document. More often than not, there is a delay between the second issue (Land Transfer document) of the Common Seal per property. This delay could result in the second issue of the Seal not appearing until the following month.

3. As a result of sales, the current numbers of Leasehold properties owned by Council are:

3.1 No cross-lease properties were sold, with 62 remaining on Council’s books

3.2 No single leasehold property was sold, with 77 remaining on Council’s books.

Decision-making process

4. Council is required to make every decision in accordance with the provisions of Sections 77, 78, 80, 81 and 82 of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within these sections of the Act in relation to this item and have concluded that:

4.1 Sections 97 and 88 of the Act do not apply.

4.2 Council can exercise its discretion under Section 79(1)(a) and 82(3) of the Act and make a decision on this issue without conferring directly with the community or others due to the nature and significance of the issue to be considered and decided.

4.3 That the decision to apply the Common Seal reflects previous policy or other decisions of Council which (where applicable) will have been subject to the Act’s required decision-making process.

Recommendations

That Hawke’s Bay Regional Council:

1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy, and that Council can exercise its discretion and make decisions on this issue without conferring directly with the community or persons likely to have an interest in the decision.

2. Confirms the action to affix the Common Seal.

Authored by:

Diane Wisely

Executive Assistant

Vanessa Fauth

Finance Manager

Approved by:

Nic Peet

Chief Executive

Attachment/s

There are no attachments for this report.

General subject of the item to be considered	Reason for passing this resolution	Grounds under section 48(1) for the passing of the resolution
Investment Strategy	s7(2)(b)(ii) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of that information is necessary to protect information which otherwise would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information s7(2)(i) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to enable the local authority holding the information to carry out, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) s7(2)(j) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.
Application to obtain credit rating	s7(2)(i) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to enable the local authority holding the information to carry out, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.
Sale of Raffles Street building	s7(2)(i) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to enable the local authority holding the information to carry out, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.
Risk and Audit Committee Chair remuneration	s7(2)(a) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to protect the privacy of natural persons	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.
Confirmation of Public Excluded Minutes		The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

Topic	Raised by