Meeting of the
Hawke's Bay Regional Council
Date: 30 October 2024
Time: 1.30pm
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Venue:
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Council
Chamber
Hawke's
Bay Regional Council
159
Dalton Street
NAPIER
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Agenda
Item Title Page
1. Welcome/Karakia/Apologies/Notices
2. Conflict
of interest declarations
3. Confirmation of Minutes of
the Hawke's Bay Regional Council meeting held on 25 September 2024
4. Public
Forum 3
5. Call
for minor items not on the Agenda 5
Decision
Items
6. 2023-2024
Annual Report for adoption 7
7. Council
appointment to the Regional Planning Committee 11
Information
or Performance Monitoring
8. Discussion
of minor items not on the Agenda
Hawke’s Bay Regional
Council
30 October
2024
Subject: Public Forum
Reason for report
1. This item provides the
means for Council to give members of the public an opportunity to address the
Council on matters of interest relating to the Council’s functions.
Background
2. The Hawke’s Bay
Regional Council’s Standing Orders provide for public forums as follows:
14.
Public
Forums
Public
forums are a defined period of time, usually at the start of a meeting, which,
at the discretion of a meeting, is put aside for the purpose of public input.
Public forums are designed to enable
members of the public to bring matters to the attention of the local authority.
In
the case of a committee or sub-committee, any issue, idea or matter raised in a
public forum must also fall within the terms of reference of that meeting.
Requests
must be made to the HBRC Governance Team (06 835 9200 or governanceteam@hbrc.govt.nz) at least one clear day
before the meeting;
however this requirement may be waived by the Chairperson.
14.1 Time limits
A
period of up to 30 minutes, or such longer time as the meeting may determine,
will be available for the public forum at each scheduled Regional Council,
Corporate & Strategic Committee, Environment & Integrated Catchments
Committee and Regional Transport Committee meeting.
Speakers
can speak for up to 5 minutes. No more than two speakers can speak on
behalf of an organisation during a public forum. Where the number of speakers
presenting in the public forum exceeds 6 in total, the Chairperson has
discretion to restrict the speaking time permitted for all presenters.
14.2 Restrictions
The
Chairperson has the discretion to decline to hear a speaker or to terminate a
presentation at any time where:
a speaker is repeating views
presented by an earlier speaker at the same public forum
the speaker is criticising
elected members and/or staff
the speaker is being
repetitious, disrespectful or offensive
the speaker has previously
spoken on the same issue
the matter is subject to legal
proceedings
the matter is subject to a
hearing, including the hearing of submissions, where the local authority or
committee sits in a quasi-judicial capacity.
14.3 Questions at public forums
At
the conclusion of the presentation, with the permission of the Chairperson,
elected members may ask questions of speakers. Questions are to be confined to
obtaining information or clarification on matters raised by a speaker.
14.4 No resolutions
Following
the public forum no debate or decisions will be made at the meeting on issues
raised during the forum unless related to items already on the agenda.
Decision-making process
3. Staff have assessed the
requirements of the Local Government Act 2002 in relation to this item and have
concluded that, as this report is for information only, the decision-making
provisions do not apply.
Recommendation
That
Hawke’s Bay Regional Council receives and notes the Public Forum speakers’
verbal presentations.
Authored by:
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Leeanne Hooper
Team Leader Governance
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Approved by:
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Desiree Cull
Strategy & Governance Manager
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Attachment/s
There are no attachments for this
report.
Hawke’s
Bay Regional Council
30 October
2024
Subject: Call for minor items not on
the Agenda
Reason
for Report
1. This item provides the
means for councillors to raise minor matters they wish to bring to the
attention of the meeting.
2. Hawke’s Bay Regional
Council standing order 9.13
states:
2.1. “A meeting may discuss an
item that is not on the agenda only if it is a minor matter relating to the
general business of the meeting and the Chairperson explains at the beginning
of the public part of the meeting that the item will be discussed. However, the
meeting may not make a resolution, decision or recommendation about the item,
except to refer it to a subsequent meeting for further discussion.”
Recommendations
That Hawke’s Bay Regional
Council accepts the following minor items not on the agenda for
discussion as item 8.
Hawke’s Bay Regional
Council
30 October
2024
Subject: 2023-2024 Annual Report for
adoption
Reason for report
1. This item presents the
Hawke’s Bay Regional Council Annual Report for the 2023-2024 financial
year for adoption.
Staff
recommendations
2. Staff recommend that the
Council adopt the Annual Report for the 2023-2024 financial year, noting
specific feedback from Ernst and Young and the qualified audit opinion.
Executive
summary
3. Under the Local
Government Act 2020 (the Act), the Annual Report and Annual Report Summary are
statutory requirements and required to be audited by an independent auditor.
Ernst & Young (EY) are the appointed auditors for HBRC.
4. A qualified audit opinion
with an emphasis of matter will be issued. The qualification relates to the previous year's qualification regarding the
non-valuation of Council’s infrastructure assets having a flow on effect
to the revaluation movement in the current year. The emphasis of matter is the
same as last year, and relates to the inherent uncertainty associated with
quantifying GHG emissions. Other councils who report on emissions have the same
emphasis of matter.
5. Auditing of
Hawke’s Bay Regional Investment Company Ltd’s (HBRIC) accounts has
been completed separately and received an unmodified audit opinion.
6. An Annual Report 2023-2024
Summary publication will be produced within 30 days of adoption. The Summary
will be audited by EY and will include consolidated accounts. It does not require Regional Council adoption but is instead authorised
by the Chief Executive.
Background
7. The purposes of the Annual
Report are to:
7.1. compare actual financial
and service performance against intended performance as set out in the Annual
Plan 2023-2024 and year 3 of the Long Term Plan 2021-2031.
7.2. promote accountability to
the community for the decisions made throughout the year by the Regional
Council.
8. Schedule 10 of
the Act prescribes what must be included in the Annual Report.
9. The summary
must represent, fairly and consistently, the information regarding the major
matters dealt with in the Annual Report. It must not include any new
information (not included in the full document) but does offer the opportunity
to engage more effectively with the community.
Discussion points
10. This is the third Annual
Report undertaken with our current auditors, Ernst & Young (EY).
11. Interim levels of service
measures were presented to the Corporate & Strategic Committee on
4 September 2024. Draft financial results were shared electronically on
Friday 18 October 2024.
Non-financials
12. Of the 58 levels of service
measures, 36 (62%) were achieved and 16 (28%) were not achieved. 6 (10%) were
not measured or not due to be measured in this year of the Long-Term Plan
2021-2031.
Financials
13. The qualification of the
audit report relates to the prior year lack of valuation of the Council’s
infrastructure assets following Cyclone Gabrielle. As HBRC did not undertake a
valuation of infrastructure assets for the 2022-2023 year and did not complete
a comprehensive assessment of impairment of the assets at 30 June 2023, the
auditors were not able to determine if infrastructure asset values are
materially accurate at 30 June 2023.
14. This has had a flow on
effect into the 2023-2024 year as the in-year revaluation figure is reliant on
the opening balances from the prior year. HBRC employed an external company to
undertake an infrastructure valuation as at 30 June 2024 which audit are satisfied
with the valuation as at balance date.
15. The emphasis of matter
paragraph draws readers attention to the inherent uncertainty associated with
quantifying GHC emissions which is one of our performance measures we report
on. This emphasis of matter has been included for three years and is common in
audit reports of councils reporting on emissions.
16. During the audit process,
staff and the audit team identified some adjustments which have mostly been
incorporated into the final report. The only adjustments identified which have
not been included are minor (less than $5 thousand) and relate to
classification within a subsidiary.
17. The production of the
Annual Report 2023-2024 financial information is a large and complex activity
given the varying ownership structures in subsidiaries and the different
accounting standards between the Port and HBRC. We have also this year brough
inhouse the consolidation process to reduce our reliance on external
consultants.
18. Council has made an
operating surplus of $3.45m compared to a budget deficit of $20.7m. The major
variances include the receipt of $151m of subsidies and grants, against a
budget of $33.1m. A large proportion of the grants are for the Silt and
Debris work ($78m) and $40m for cyclone recovery work, the costs of which were
either capital in nature or incurred in the prior year.
19. These results do not
include insurance receipts that had not been finalised at 30 June 2024.
There will continue to be insurance claims in the following years as we work
through the claim processes. The majority of insurance receipts related to Cyclone
Gabrielle will therefore be recognised in future years as they are processed.
20. Including other
comprehensive income and expense, council has had a large increase in the value
of infrastructure assets. This is due to the revaluation undertaken by
external valuers. The major movement is within stop banks ($198m).
The valuer compared our recent cost history for rebuilding stop banks, noting
that these unit rates were in a disaster recovery setting which may have
inflated the costs. They also compared those rates against our build
costs for stop banks built just before the cyclone hit and also other councils
recent cost history. Last year we recognised an impairment of $16m.
21. It is important
to note that while stop banks are not depreciated and hence this large
revaluation gain does not significantly impact on our depreciation that needs
to be funded, it will likely have an impact on our insurance premiums going
forward.
22. All of our benchmarks were
met for the year to 30 June 2024.
Next steps
23. Following Council adoption,
and in line with section 98 of the Local Government Act 2002, both the
2023-2024 Annual Report and the 2023-2024 Annual Report Summary will be made
publicly available within one month. Both will be published on the HBRC website
(hbrc.govt.nz, search: #annualreports), and a limited number of the
Annual Report Summaries will be printed.
Decision-making considerations
24. The Regional 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 that because the Annual
Report is a statutory report required to be adopted by Council under Section 98
of the Act, the other decision-making provisions do not apply.
Recommendations
That Hawke’s Bay Regional
Council:
1. Receives and considers the 2023-2024
Annual Report staff report.
2. Adopts the Hawke’s Bay Regional
Council 2023-2024
Annual
Report for publication.
Authored by:
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Sarah Bell
Team Leader Strategy and Performance
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Pam Bicknell
Senior Group Accountant
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Chris Comber
Chief Financial Officer
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Approved by:
Attachment/s
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1
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HBRC 2023-24 Annual Report Parts 1-4
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Under Separate Cover
Available
online only until after publication
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Hawke’s
Bay Regional Council
30 October
2024
Subject: Council appointment to the
Regional Planning Committee
Reason for Report
1. This item provides the
means for Council to make the appointment of a councillor member of the
Regional Planning Committee (RPC) to replace Di Roadley.
Staff
recommendation
2. Staff recommend that
Council appoints Sophie Siers to replace Di Roadley on the RPC.
Background
3. Hawke’s Bay Regional
Council is required
by statute to have the Regional Planning Committee in accordance with the Hawke’s Bay Regional
Planning Committee Act 2015 (HB RPC Act).
4. The Regional Planning
Committee (RPC) was formally established[1]
under the HB RPC Act for the purpose of improving tāngata whenua
involvement in the development and review of the Regional Resource Management
Plan and Regional Coastal Environment Plan (documents prepared in accordance
with the RMA). It is a permanent committee of Council. The HB RPC Act
states that “the purpose of the RPC is to oversee the development and
review of the RMA documents prepared in accordance with the Resource Management
Act 1991 for the RPC [Hawke’s Bay] region.”
5. Under the HB RPC Act, the
RPC is to consist of an equal number of tāngata whenua members and Council
members. The tāngata whenua members are respectively appointed by nine Appointers[2]
specified in the HB RPC Act. The Council appoints an equal number of
Council members (up to ten) using a method of its own choice. The method is not
prescribed in the HB RPC Act.
6. A Council member is
appointed to the RPC for a term commencing with the first meeting of the
Council after the triennial general election of members of a local authority
under the Local
Electoral Act 2001
and ending with the close of the day before the next triennial general
election. However, if a Council member is appointed after the date of the first
meeting of the Council referred to in subclause (1)(b), the member is
appointed from that date until the close of the day before the next triennial
general election.
Membership
of RPC
7. The overriding principle
under the HB RPC Act is that RPC consists of an equal number of TWR members and
Council members. There is the need to appoint a replacement so there are equal
numbers of Council and PSGE representatives.
Decision-making considerations
8. 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:
8.1. Council is required to (LGA
sch.7 cl.19(1)) hold the meetings that are necessary for the good government of
its region
8.2. Council may appoint (LGA sch.7 cl. 30(1)(a)) the committees,
subcommittees, and other subordinate decision-making bodies that it considers
appropriate and is
required by
statute to have the Regional Planning Committee in accordance with the Hawke’s Bay Regional
Planning Committee Act 2015 (HB RPC Act)
8.3. Given the provisions above,
Council can exercise its discretion and make the 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 Council
appointment to the Regional Planning Committee staff report.
2. Agrees that Council can exercise its discretion
and make these decisions without consulting directly with the community.
3. Appoints Councillor Sophie
Siers to the Regional Planning Committee, to replace Councillor Di Roadley.
Authored by:
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Leeanne Hooper
Team Leader Governance
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Approved by:
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Desiree Cull
Strategy & Governance Manager
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Attachment/s
There are no attachments for this
report.
