Long-term Plan 2024-34 Workshops
Workshops offer the opportunity for Councillors and mana whenua representatives to discuss issues in an environment where no decisions are being made. Staff are able to get feedback, explain complex matters and ensure governance is well-informed prior to any formal decision-making.
Workshops are generally open to the public unless there are matters that require the public to be excluded. These issues generally relate to matters where legal privilege is required, commercial sensitivities exist, or the rights of private citizens need to be protected.
There is a lot to consider when developing the 2024-2034 Long-term Plan. To stay on track, Councillors meet and discuss the challenges and opportunities at regular workshops. Below is a summary of the workshops and links to key presentations.
Workshop 1: 7 June 2023
The purpose of this workshop was to consider the strategic context within which Environment Southland and the region is operating, and priorities for the LTP and beyond.
Information considered included:
(a) key issues to be taken into account as part of the Long-term Plan
(b) an overview of the proposed process for developing Environment Southland’s strategy and organisational business plan
Links to key workshop presentations can be found below:
Workshop 2: 19 July 2023
This workshop was focused on the following key issue from the first workshop:
Flood frequency and intensity is increasing. Projected to get worse under climate change projections.
The main purpose of the workshop was to explore the issues and options for Environment Southland’s flood protection schemes, which are the key infrastructural assets owned by Council. Environment Southland must develop an Infrastructure Strategy as part of the Long-term Plan under the Local Government Act 2002.
The Chairs of the region’s Catchment Liaison Committees joined the workshop given the important advisory role the Catchment Liaison Committees play in the management of the region’s flood protection schemes.
Key topics explored included:
- prioritisation of urban flood protection levels over rural with the importance of protecting people over property noted
- options for restoring design level of service for the flood protection network where appropriate
- further information needed
A link to the workshop presentation can be found below:
Workshop 3: 24 August 2023
This workshop continued to explore the issues and options for Environment Southland’s flood protection schemes with the Chairs of the region’s Catchment Liaison Committees again in attendance.
The previous workshop focused on issues and options for the short to medium term, while this workshop picked up the conversation on how to manage catchments to ensure climate resilience in the longer-term.
It was observed that work is required in the mid to upper catchments to reduce flooding risks to communities. Many of those areas and solutions needed are not funded under the current approach. This led into a discussion on the funding of floodplain management and a rating review. The need for change in funding and a new approach were discussed. The workshop covered the process required to undertake a rating review, focusing on the requirements under the Act.
Questions explored during the workshop included:
Question 1: Can we operate more effectively using a regional approach?
Question 2: Is there still a need to share the cost between ratepayers dependent on where the property is situated? Is there any value in having any type of classification system based on benefit?
If sharing the cost between different ratepayers is important, on what basis would we do that? Location? Type? How much complexity are we adding or retaining?
Question 3: Is land value still the best way to calculate targeted rates?
A summary of the feedback on these questions was provided at the 27 September and 19 October workshops.
Links to key workshop presentations can be found below:
Workshop 4 and 5: 1 September 2023
This workshop had a financial focus and covered Environment Southland’s Financial and Investment Strategies, and key financial assumptions.
There was also a presentation on the Southland Region Forecasting Scenarios completed by Infometrics for Beyond 2025 Southland. This work is available on request from Great South.
The session on the Investment Strategy was held in committee due to commercial sensitivities.
Links to some key workshop presentations can be found below:
- Critical financial strategy assumptions
- Financial Strategy
- Investment Strategy
- Financial Principles 2023 Workshop 1 Sept
Workshop 6: 27 September 2023
The purpose of this workshop was to continue the discussions around the issues and options for the flood protection network given improving community resilience to a changing climate amid predictions of more severe, frequent, and intense weather events had been identified as a key issue for this Long-term Plan.
The previous workshops held on 19 July and 24 August on this topic were summarised noting that:
- there is a desire for change, and a desire to simplify catchment rating
- some queries around control of funding
- uncertainty around voice in regional asset management planning
- that the urban areas have a higher level of service
The workshop noted the very complex current rating system, noting the need to break it down into “parts” and work through each part. The following topics and options were worked through during the workshop:
Question 1 – Catchment Management and Planning
Option 0 - Do nothing; retain current cost sharing;
Option 1 - Labour and overhead considered 100% regional cost.
Question 2 – River management – regional v local
Option 0 - Do nothing, local schemes, own budgets, regional and local rate simplified
Option 1 - Local schemes, own budgets, regional rate;
Option 2 - Local schemes, regional budget, regional rate;
Option 3 - Regional scheme, regional budget, regional rate.
Question 3 – River management funding: how do we share the cost? (assuming local share)
Option 0 - Do nothing
Option 1 - Retain a split between region and community. 30%-90% acknowledges that there is a local community benefit greater than regional benefit and it is sufficient to have a separate rating system.
Option 2 - Remove the local share (targeted rate) – 100% regional share acknowledges that all ratepayers are benefitting from the work undertaken; could be CV, fixed charge, or a combination of both.
Question 4 – Do we retain classifications – assuming a local share remains?
Option 0 - Do nothing
Option 1 - Refine current classification system
Option 2 - Rate all properties in the catchment on equal basis
Option 3 - Consider how the use of fixed charge, capital value could provide some degree of differentiation
Question 5 – What rating base is appropriate; assuming a local share remains?
Option 0 - Do nothing, retain land value basis;
Option 1 - Move to capital value (CV)
Option 2 - Consider rate per hectare;
Option 3 - Consider fixed charge per property along with CV
Question 6 – Flood Resilience – new investment in infrastructure and maintenance/improvement of assets
Option 0 - Do nothing, no current rate in place, not an option
Option 1 - 100% across the region – everyone in the region benefits from a resilient community (CV or fixed rate per property or both).
Option 2 - % regional share and % local share
Four rating models were presented for illustrative purposes. The feedback provided during the workshop would inform model development to compare rate options with the status quo.
Links to some key workshop presentations can be found below:
Workshop 7: 3 October 2023
The purpose of this workshop was to seek input on the financial strategy, as well as to introduce the proposed groups of activities.
The financial principles that had previously been discussed were reviewed with no changes recommended as a result of that review.
The workshop then considered operating expenditure, operating surplus and balancing the budget, and capital expenditure, before moving on to possible rates models. These were displayed and explained as follows:
- the first model showed all Council’s costs being covered by a regional rate. The first model was based on the theme that everyone benefits equally by the work done by Council.
- The second model provided for a 50/50 share regional/local contribution. That model took a similar approach – noting that we are one community, but there is local input and potentially local benefit received.
- model 3 took an approach of recognising people first – people’s property and livelihood – puts small charge on the property, otherwise same as model two.
- model 4 – 50/50 capital value but also changes the land sustainability and biosecurity rates to a capital value base. The reason for that is looking at all activities in catchment, all work together for benefit of everybody. This model reduces the UAGC, recognising it is a significant redistribution. This is the people, property and livelihood model.
Governance were asked to consider each of these models in detail and provide feedback.
The following topics and options were worked through during the workshop:
Question 1 – Options to Consider for Rates limit setting
Current Option – use % set after rates determined, but slightly higher
Option 1 – use formula based approach
Question 2 – Maximum potential debt levels
Option Current – Remain at 40% self imposed debt, restrict debt to $32M
Option 1 – Increase self-impose debt limit to 80% of total revenue.
Question 3 – Investment Income and Reserves – options for consideration
Option Current – Transfer operating surplus to leasehold reserves.
Option 1 – cap reserves at current levels, inflation-proof only. (Allow income to be used for activities – e.g. climate resilience).
Question 4 – Investment Income and Reserves
Option Current – Budget current dividend income – no growth.
Option 1 – Budget growth in dividend, use to fund rates
Option 2 – Budget growth in dividend, use growth to create reserve.
Question 5 – Investment Income and Reserves – Managed Fund
Option Current – Budget at 2% return, transfer investment income greater than budget to general reserve.
Option 1 – Budget at 3% return, transfer investment income greater than budget to reserve balances to inflation proof reserves.
Question 6 – Investment Income and Reserves – Managing Reserve Balances (Resilience)
Option Current – No Change
Option 1 – Review list of current reserves and target rate retained earnings balances and transfer those not needed to new “Resilience Reserve”
Option 2 – Alter Treasury Policy – all reserves to be backed by cash or cash equivalents.
Option 3 – Consider setting “minimum balances” to be held in reserve to support liquidity. Noted Options 1-3 are independent.
The following overview of the proposed Groups of Activities was presented:
Workshop 7 10 03 2023 - Groups of Activities
Workshop 8: 19 October 2023
This workshop was a follow-up to the discussions on 19 July and 24 August on the issues and options for Environment Southland’s flood protection schemes with the Chairs of the region’s Catchment Liaison Committees again in attendance.
Three options for flood protection infrastructure and capability building were considered:
- Option 1 - Status quo and capital projects debt repayment
- Option 2 – Debt, gradual improvement in capability, maintenance, data and knowledge and new infrastructure
- Option 3 – Debt, significant investment in capability, maintenance and new infrastructure and moving early in developing alternative policies and infrastructure.
Funding
The previous discussions on 19 July and 24 August were summarised, then a group of questions similar to those workshopped by Councillors on 27 September were explored by the wider group.
The relationship between total rates, capital values, location and ratepayer land use were reviewed (Appendices).
These are contained in the presentation below:
CLC chairs workshop - community resilience
Workshop 9: 1 November 2023
The purpose of this workshop was to review progress to date, share information and seek guidance on:
- high-level funding options for new flood infrastructure
- rating review options and next steps
- communications and engagement
Link to workshop presentations can be found below:
Workshop 10: 30 November 2023
This workshop reviewed progress to date and considered next steps. Previous workshops had focused on the region’s flood protection infrastructure and how to ensure community resilience into the future. Sitting alongside this, previous workshops had explored how to share climate resilience costs and simplify the current catchment rating schemes.
Governance considered the high level budgets (which had been updated since the previous workshop) and where the rating review was at before discussing the fees and charges schedule. They also considered the organisational business plan (work programme).
Links to key workshop presentations can be found below:
Workshop 10 - 30 11 2024 Climate Resilience Funding
Martin Jenkins - Business Plan - Council LTP workshop - 30 Nov 2023
Environment Southland - Business Plan - Governance Version - November 2023
Workshop 10 & 11 - 11 30 2023 - High level budget
Workshop 11: 14 December 2023
This workshop continued the conversation from the 30 November workshop on the organisational business plan and also provided an update on the rating review, Infrastructure Strategy and Catchment Liaison Committee discussions. The Rates Remission and Postponement of Rates on Māori Freehold Land Policy was discussed, along with the outcomes of some early public drop-in sessions.
Key information presented included:
Workshop 11 - 14 14 2024 Climate Resilience Funding
Workshop 12: 1 February 2024
This workshop was focused on progressing key financial elements of the Long-term Plan ahead of audit and consultation. In particular, the Financial Strategy, Treasury Policy, Reserves Policy, Rates Remission Policy and high-level budget. A recap of the journey to date was also undertaken.
Key presentations can be accessed below:
23 01 2024 - LTP 2024-34 high level budget
In addition, there was a discussion on consultation options as follows:
- Investing in flood infrastructure Options a) Status quo b) Take a sustainable approach to building capability, addressing maintenance and increasing monitoring, initially; starting a capital build programme later, while planning for the future. (preferred option)
- Flood protection infrastructure and debt associated with climate resilience Government- co-funded projects. Optionsa) Status quo b) Remove targeted catchment rates and replace with a general, region-wide rate for flood protection infrastructure and maintenance, including debt associated with climate resilience projects, and reduce Uniform Annual General Charge to $120. (preferred option)
- Biosecurity and land sustainability ratesa) Status quob) Remove targeted rates for biosecurity and land sustainability and replace with capital value-based region-wide rates.
A session on the Investment Strategy was held in committee due to commercial sensitivities.
A variety of research papers were provided as background material for the meeting including:
www.resilientrivers.nz/files/16970599043.pdf
https://tewaihanga.govt.nz/media/hgwddiao/sector-state-of-play-water.pdf
https://www.trc.govt.nz/assets/Docum ents/Research-reviews/hazards/FloodControlCoInvestment2019.pdf
Workshop 13: 20 February 2024
This workshop was also focused on progressing key elements of the Long-term Plan ahead of audit and consultation. The workshop discussed the final draft of the Revenue and Financing Policy and Funding Needs Analysis.
Workshop 14: 6 March 2024
This was the final workshop prior to the draft Consultation Document and supporting information going to the Risk and Assurance Committee and then to Council for adoption for public consultation. The workshop was focused on the draft Consultation Document and draft Fees and Charges Schedule. It also considered updated significant forecasting assumptions, policies and groups of activities.
The key presentation from the workshop can be accessed below:
