Minutes of Extraordinary Hawke's Bay Regional Council meeting

1. Welcome/Karakia/Apologies/Notices

The Chair welcomed everyone and Councillor Thompson Hokianga opened with a karakia, acknowledging the devastation in Wairoa and extending aroha to everyone there.

Nic Peet outlined the support HBRC staff are providing to Wairoa District Council and the community, including in Civil Defence response and recovery roles, rates relief for properties, and more practical work such as helping collect rubbish. As well, HBRC is commissioning an independent review of Wairoa River bar management leading up to the flooding event and the Government, through the Ministry for the Environment,

Resolution

RC55/24 That the apologies for absence from Councillor Jerf van Beek and Tania Hopmans be accepted.

Ormsby/Siers

CARRIED

Conflict of interest declarations

There were no conflicts of interest declared.

2. Confirmation of Minutes of the Extraordinary Hawke's Bay Regional Council meeting held on 18 and 20 June 2024

Wrap-up resolutions to be corrected as detailed to:

· Include special dividend resolutions in the substantive motion

· Final resolution on biodiversity funding to be reinstated by year 3 of the plan

· Mover/seconder to be repeated where resolutions voted on separately.

RC56/24

Resolution

Minutes of the Extraordinary Hawke's Bay Regional Council meeting held on Tuesday, 18 and Thursday 20 June 2024, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record as amended.

Harding/Hokianga

CARRIED

Confirmation of Minutes of the Hawke's Bay Regional Council meeting held on 26 June 2024

Correction to be made to ‘discussion of minor items to close the loop - addressed in item 6.

RC57/24

Resolution

Minutes of the Hawke's Bay Regional Council meeting held on Wednesday, 26 June 2024, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record as amended.

Siers/Foley

CARRIED

Adoption of the HBRC Three Year Plan 2024-2027

Nic Peet briefly introduced the item, which was taken as read. Desiree Cull provided an overview of the 11 month process leading to today and Chris Comber explained the balanced budget (revenue and expenditure) figures meet requirements with the exclusion of the Central Government funding for the Flood Resilience Programme. Discussions covered:

· The Public Transport rates remissions are covered by Special Circumstances, not as a separate remission policy.

Councillor Jerf van Beek attempted to join the meeting online at 9.55am but was unable to connect.

· The special dividend is split ― $2.55M in year 1 and $300k in year 2.

· This plan is unaudited as allowed by the Severe Weather Emergency Recovery Legislation Act (SWERLA), and the Finance team is confident the financial numbers and assumptions are accurate.

· Other regional councils’ percentage rates increases range from mid-teens to low 20s.

· For Wairoa, HBRC intends to use part of the contingency fund (~$40k) to pay the rates for stickered properties as delegated to the Chief Executive (no rates impact) and hardship remissions will be available for others.

· The rates benchmark is not prescribed by the legislation and for this 3YP has been left at 8% (which has been in place for several years) however staff intend to review all of the benchmarks ahead of the next LTP to ensure they are relevant.

RC58/24

Resolutions

That Hawke’s Bay Regional Council:

3. Adopts a balanced budget for all three years of the Three-Year Plan 2024-2027.

Councillor Foley moved an amendment, seconded by Councillor Kirton, being the additional:

3.1 Notes that after the first year, the following two years of budget will be substantially amended due to the need to restructure the organisation’s underlying cost structure which has expanded very significantly over the past 6 year period, and which now has raised real affordability issues for ratepayers.

Foley/Kirton

5 For: Hokianga, Mackintosh, Roadley, Kirton, Foley

5 Against: Lambert, Williams, Harding, Siers, Ormsby

Chair chose not to exercise her casting vote

LOST

3.2 Instructs the CE to work with the Council on the terms of reference for a substantive independent review into the organisation’s cost structure and capability, with this review to be undertaken over the first 3 months of the 2024-25 financial year.

Foley/Kirton

For: Foley, Kirton

Against: Lambert, Hokianga, Mackintosh, Harding, Roadley, Siers, Ormsby

LOST

Councillor Williams moved a further amendment of 3.2, seconded by Councillor Mackintosh, being:

Williams/Mackintosh

8 For: Hokianga, Mackintosh, Williams, Harding, Roadley, Kirton, Foley, Ormsby

2 Against: Lambert, Siers

CARRIED

3.2.1 Notes that the reviewer will regularly update the full Council on findings and progress.

Kirton/Foley

8 For: Hokianga, Mackintosh, Williams, Harding, Roadley, Kirton, Foley, Ormsby

2 Against: Siers, Lambert

CARRIED

3.2.2 Notes that the minimum expectation of enduring cost reductions will be no less that 20% reduction in operational expenditure for the balance of the three year plan.

Kirton/Foley

2 For: Kirton, Foley

8 Against: Lambert, Hokianga, Mackintosh, Williams, Harding, Roadley, Siers, Ormsby

LOST

The substantive Resolutions were then put:

That Hawke’s Bay Regional Council:

1. Receives and notes the Adoption of the HBRC Three Year Plan 2024-2027 staff report.

2. Adopts the strategies and policies included in the Three-Year Plan as required by the Local Government Act 2002 and modifications enabled through the Severe Weather Emergency Recovery Legislation Act 2023 (SWERLA), including the:

2.1. Financial Strategy

2.2. Infrastructure Strategy

2.3. Revenue and Financing Policy

2.4. Treasury, Liability Management & Investment Policy

2.5. Rates Remission and Postponement Policies

2.6. Significance and Engagement Policy

2.7. Fees and User Charges Policy.

Williams/Siers

CARRIED unanimously

3. Adopts a balanced budget for all three years of the Three-Year Plan 2024-2027.

3.1. Instructs the CE to work with the Council on the terms of reference for a substantive independent review into the organisation’s cost structure and capability, with this review to be undertaken over the first 6 months of the 2024-25 financial year.

3.2 Notes that the reviewer will regularly update the full Council on findings and progress.

4. Adopts Hawke’s Bay Regional Council’s Three-Year Plan 2024-2027 as presented, with any minor editorial corrections as necessary.

5. Instructs staff to publish Hawke’s Bay Regional Council’s Three-Year Plan 2024-2027 in its final form, within one month of adoption in accordance with Section 93(10) of the Local Government Act 2002.

Williams/Siers

For: Lambert, Hokianga, Mackintosh, Williams, Harding, Roadley, Siers, Ormsby

2 Against: Foley, Kirton

CARRIED

Setting of the 2024-2025 Rates

Chris Comber introduced the item, which was taken as read.

RC59/24

Resolutions

That Hawke’s Bay Regional Council:

1. Confirms that the decisions to be made on the setting and assessing of rates cover information in the Funding Impact Statement for the 2024-25 year as included in the 2024-2027 Three-Year Plan as required by Section 95 of the Local Government Act 2002.

2. Sets the following rates under the Local Government (Rating) Act 2002, on rating units in the region for the financial year commencing on 1 July 2024 and ending on 30 June 2025. These rates are set in accordance with the relevant provisions of the 2024-25 Funding Impact Statement and are inclusive of GST.

2.1. A general rate is set under sections 13, and 131 of the Local Government (Rating) Act 2002 on an estimate of projected equalised capital value as per the following table.

2.2. A uniform annual general charge is set at $125.95 per separately used or inhabited part of a rating unit (SUIP) under section 15(1)(b) of the Local Government (Rating) Act 2002 as per the following table.

2.3. The following targeted rates, as described in the Funding Impact Statement, are set under sections 16, 17 & 18 of the Local Government (Rating) Act 2002 as per the tables following.

2.3.1. Subsidised Public Transport – Based on rating units in Napier and Hastings within a designated valuation roll footprint and equalised capital value

2.3.2. Healthy Homes/Clean Heat – Based on rating units in Napier and Hastings within a designated valuation roll footprint and equalised land value

2.3.3. Economic Development – All non-Residential, non-Lifestyle, or non-Utilities properties based on equalised capital value

2.3.4. Primary Production Pests – Based on non-urban properties and equalised land value

2.3.5. Sustainable Land Management – Based on non-urban properties and equalised land value

2.3.6. Water Quality – Based on non-urban properties and equalised land value

2.3.7. Land Monitoring, Research, and Investigations Science – Based on non-urban properties and equalised land value

2.3.8. Heretaunga Plains Flood Control Scheme - Based on properties within Napier City and Hastings District and equalised capital value

2.3.9. Maraetotara Flood Control – Based on properties in Hastings District within the Maraetotara Flood scheme footprint and capital value

2.3.10. Upper Makara – Based on properties in Central Hawke’s Bay and Hastings District within the Upper Makara Flood scheme footprint and equalised capital value

2.3.11. Upper Tukituki Flood Control Scheme - Based on properties in Central Hawke’s Bay and Hastings District within the Upper Tukituki Flood scheme footprint and equalised capital value

2.3.12. Whirinaki Industrial – Based on properties in Hastings District within the Whirinaki Industrial Flood scheme footprint and capital value

2.3.13. Various Streams and Drainage Schemes

2.3.13.1. Brookfields & Awatoto – Based on properties in Napier City within the Brookfields Awatoto drainage area and capital value

2.3.13.2. Clive & Muddy Creek – Based on properties in Hastings District within the Clive Muddy Creek drainage area and capital value

2.3.13.3. Haumoana Te Awanga – Based on properties in Hastings District within the Haumoana drainage area and capital value

2.3.13.4. Karamū & Tributaries – Based on properties in Hastings District within Havelock North area and capital value

2.3.13.5. Napier, Meeanee, Puketapu – Based on properties in Hastings District and Napier City within the Napier, Meeanee, Puketapu drainage area and equalised capital value

2.3.13.6. Ohuia, Whakaki – Based on properties in Wairoa District within the Ohuia drainage area and capital value

1.1.1.1. Opoho Drainage – Based on properties in Wairoa District within the Opoho drainage area and fixed amount

1.1.1.2. Pākōwhai Brookfields – Based on properties in Hastings District within the Pākōwhai drainage area and capital value

1.1.1.3. Paeroa Drainage – Based on properties in Wairoa District within the Paeroa drainage area and capital value

1.1.1.4. Poukawa Drainage – Based on properties in Hastings District within the Poukawa drainage area and capital value

1.1.1.5. Puninga – Based on properties in Hastings District within the Puninga drainage area and capital value

1.1.1.6. Raupare Enhancement – Based on properties in Hastings District within the Raupare Enhancement area and calculated on area

1.1.1.7. Raupare Twyford – Based on properties in Hastings District within the Raupare Twyford drainage area and capital value

1.1.1.8. Tūtaekurī-Waimate & Moteo – Based on properties in Hastings District within the Tūtaekurī Waimate Moteo drainage area and capital value

1.1.2. Sustainable Homes – Financial Assistance (includes Clean Heat Assistance) Based on value of service provided to specific properties as requested

1.2. The following uniform targeted rates, as described in the Funding Impact Statement, are set under sections 16 and 17 of the Local Government (Rating) Act 2002 as per the following tables.

1.2.1. Coastal Hazards - Fixed amount per separately used or inhabited part based on location

1.2.2. CDEM- Emergency Management - Fixed amount per separately used or inhabited part based on location

1.2.3. Regional Economic Development: Residential and Lifestyle properties as a fixed amount per separately used or inhabited part of a rating unit

2. Sets the due date for payment of rates set for the financial year commencing 1 July 2024 and ending on 30 June 2025 as 20 September 2024.

3. Resolves, in accordance with sections 57 and 58(1)(b) of the Local Government (Rating) Act 2002, that a penalty of 10% be added to the amount of rates from previous financial years remaining unpaid on 18 July 2024. The penalty will be added on 18 July 2024.

4. Resolves, in accordance with sections 57 and 58(1)(a) of the Local Government (Rating) Act 2002, that a penalty of 10% be added to the amount of rates for the 2024-25 financial year that remain unpaid after the due date stated above. The penalty will be added on 21 September 2024.

Harding/Roadley

CARRIED unanimously

Councillor Thompson Hokianga led the group in offering a karakia to close the meeting.

Closure:

There being no further business the Chair declared the meeting closed at .11.24am on Wednesday, 10 July 2024.

Signed as a true and correct record.

Date: by HBRC resolution 24 July 2024 Chair: Will Foley