114th Meeting
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Date: |
Tuesday, 3 August 2021 |
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Time: |
9.30am |
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Location: |
Council Chambers Fairlie |
Supplementary AGENDA
Ordinary Council Meeting
3 August 2021
Note: This meeting may be digitally recorded by the minute-taker.
Ordinary Council Meeting Agenda 3 August 2021
1.1 Economic Development Strategy
1.2 Rates Resolution - section 50 of the Local Government (Rating) Act 2002
1.1 Economic Development Strategy
Author: Paul Numan, General Manager Corporate Services
Authoriser: Angela Oosthuizen, Acting Chief Executive
Attachments: 1. Mackenzie District Council
Economic Development Strategy ⇩
Council Role:
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☐ Advocacy |
When Council or Committee advocates on its own behalf or on behalf of its community to another level of government/body/agency.
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☐ Executive |
The substantial direction setting and oversight role of the Council or Committee e.g. adopting plans and reports, accepting tenders, directing operations, setting and amending budgets.
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☒ Legislative |
Includes adopting District Plans and plan changes, bylaws and policies.
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☐ Review |
When Council or Committee reviews decisions made by officers.
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☐ Quasi-judicial |
When Council determines an application/matter that directly affects a person’s rights and interests. The judicial character arises from the obligation to abide by the principles of natural justice, e.g. resource consent or planning applications or objections, consents or other permits/licences (e.g. under Health Act, Dog Control Act) and other decisions that may be appealable to the Court including the Environment Court.
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☐ Not applicable |
(Not applicable to Community Boards).
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Purpose of Report
The purpose of this report is to present the Mackenzie District Council Economic Development Strategy for adoption. The strategy document outlines the Mackenzie District Council’s vision that the District has a sustainable economic development with shared access to prosperity, resilient communities and a proud identity.
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1. That the report be received. |
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2. That the Economic Development Strategy be adopted by Council. |
Background
The Economic Development Strategy sets out the criteria the Council uses to guide decision making involving the Districts economic and business sector development. The strategy ensures the reasons behind the Council’s decisions are consistent, predictable, equitable, and available to the public.
The Economic Development Strategy is a non-statutory enabling mechanism for Council to deliver wide spectrum access to prosperity in conjunction with Council’s other strategic planning instruments such as Te Manahuna Ki Uta | Destination Mackenzie, Spatial Plan, Long Term Plan and the Te Manahuna Land Strategy.
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As such, the Economic Development Strategy is a key tool to enable optimal access to prosperity by the Mackenzie District community. |
Policy Status
The Economic Development Strategy is now submitted to Council for approval.
Significance of Decision
In accordance with the Council's Significance and Engagement Policy, adoption of this Strategy has been assessed as having low significance and will not require community consultation.
Options
N/A
Considerations
Legal
N/A
Financial
N/A
Other
N/A
Conclusion
It is recommended that the Council adopt the attached Economic Development Strategy.
1.2 Rates Resolution - section 50 of the Local Government (Rating) Act 2002
Author: Paul Numan, General Manager Corporate Services
Authoriser: Angela Oosthuizen, Acting Chief Executive
Attachments: Nil
Council Role:
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☐ Advocacy |
When Council or Committee advocates on its own behalf or on behalf of its community to another level of government/body/agency.
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|
☐ Executive |
The substantial direction setting and oversight role of the Council or Committee e.g. adopting plans and reports, accepting tenders, directing operations, setting and amending budgets.
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☒ Legislative |
Includes adopting District Plans and plan changes, bylaws and policies.
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☐ Review |
When Council or Committee reviews decisions made by officers.
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☐ Quasi-judicial |
When Council determines an application/matter that directly affects a person’s rights and interests. The judicial character arises from the obligation to abide by the principles of natural justice, e.g. resource consent or planning applications or objections, consents or other permits/licences (e.g. under Health Act, Dog Control Act) and other decisions that may be appealable to the Court including the Environment Court.
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☐ Not applicable |
(Not applicable to Community Boards).
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Purpose of Report
The purpose of this report is to meet the requirements of Section 50 of the Local Government (Rating) Act 2002 which states that Council may deliver a rates invoice for not more than 25% of the rates payable in the previous year if it is not able to deliver a rates assessment at least 14 days before:
a) The date on which the first instalment of rates for the current year is payable in a case where the rates have been set by resolution of the local authority under section 23 of the Local Government (Rating) Act 2002, or
b) The date one calendar year after the date when the first payment of rates for the previous year was payable in a case where no resolution has been made under Section 23 of the Local Government (Rating) Act.
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1. That the report be received. 2. That the Mackenzie District Council resolves to deliver a rates invoice for 25% of the rates that are payable in the previous year. 3. That the due dates of the rates invoice is 20 September 2021 4. That pursuant to sections 57 of the local Government (Rating) Act 2002, the Council prescribes the following penalty be added to unpaid rates: A penalty of 10% will be added to unpaid rates from previous financial years unpaid on the later of 5 working days after the date of the resolution or 3 August 2021. The penalty charge will be applied on so much of any rates levied before 1 July 2021 which remain unpaid on 3 August 2021. |
Background
Section 50 of the Local Government (Rating) Act covers the delivery of a rates invoice for 25% of the rates that are payable in the previous year.
Policy Status
Not applicable.
Significance of Decision
This matter is deemed significant under the Council’s Significance Policy as the setting of the rates is a material revenue source and the alternative procedure being used although provided for by the Act is due to a statutory breach in not adopting the Long-Term Plan timeously as required by the Local Government Act. No consultation is required under the alternative procedure defined in Section 50 of the Rating Act.
Options
Council has two options:
a) Deliver a rates invoice for on 25% of the rates that are payable in the previous year by passing the above resolution as set out in recommendation 2. This is deemed to be the preferred option as it ensures that we generate cash flow (albeit at a reduced level) to meet Council’s operating requirements.
b) Not pass the above resolution as recommended and assess the rates payable in three instalments. This would mean ratepayers would need to pay higher rates instalments over 3 instalments instead of 4. This would be confusing to Ratepayers expecting a rates invoice in August (payable in September) and this could prove to be onerous and create financial hardship for some ratepayers.
Considerations
Administrative provisions
· Arrears penalties will be authorised (to rates unpaid from previous years) by the Council, by resolution in the normal way.
· Penalties on unpaid section 50 rates will not be levied
· Rates set under section 50 will be based on last year’s rates assessment (ie 25% of the amount assessed last year) regardless of any changes in valuations.
· No funding impact statement is required to be set as the rates are based on last year’s rates
· The invoice is delivered to the ratepayer in the normal way.
· As provided for in section 50 of the Rating Act is limited to those rating units that were actually assessed for rates in the previous financial year. To the extent that ratepayers have changed (e.g. through the sale of a rating unit), then the invoice will be sent to the current ratepayer.
· Ratepayers who pay the 25% invoice will end up having paid an amount that will be taken into account when the Council has resolved to set and assess the rates. When assessing the 2021/2022 rates on rating units that have paid the section 50 rates, the amount due will show as a credit and reduce the rates payable.
· New rating units (for example, created through subdivision) will obviously have the full amount of the 2021/22 rates payable over the 3 instalments with no reduction to reflect the section 50 rates (because those rating units will not have been invoiced under section 50).
Legal
Legal advice on this matter has been provided by Simpson Grierson and is attached in public excluded.
Section 50 of the Local Government (Rating) Act is the only option available if Council wish to provide a rates invoice before the LTP process has been completed.
Financial
If Council chooses not to invoice rates by Section 50, there will be cashflow implications for the day-to-day operations of the Council. The amount of the reduced cash flow would be approximately $3.8M (comprising 25% of the total of the previous years rates) and that $604K would be the ECan portion. Council would ensure that adequate funding is available by utilisation of investments.
Conclusion
That Council adopts the staff recommendation 2 and 3.
By applying Section 50 of the Local Government (Rating) Act to send out a rates invoice is the only method whereas Council can keep the status quo in sending out 4 rates invoices to its ratepayers for this financial year 1 July 2021 to 30 June 2022. This is the fairest way to spread the cost of the annual rates to its ratepayers.
RESOLUTION TO EXCLUDE THE PUBLIC
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That the public be excluded from the following parts of the proceedings of this meeting. The general subject matter 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 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:
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