Apology

Resolution  CL25-8.1

Moved:                         Cr R Joyce

Seconded:         Cr M Murray-Benge

That the apology for absence from Cr Henry be accepted.

Carried

9.1          Tourism Bay of Plenty Half-Yearly Report to 31 December 2024 and Statement of Intent 2025-26 to 2027-28

Council considered a report dated 26 June 2025 from the Community and Strategic Relationships Manager.

Oscar Nathan (General Manager) and Richard Faire (Head of Strategy and Insights) were in attendance on behalf of Tourism Bay of Plenty (TBOP) to present their Six-Month Report as PowerPoint Presentation 1.

They responded to pātai as follows:

·                TBOP had not explored the changes to the Eligible Investor Category in New Zealand, and what opportunities there may be in increasing international tourism through international investors.  It was noted that the International Strategy Outcomes meeting did raise this particular topic, and Priority One was coordinating a lot of the international outcomes.

·                It was acknowledged that more housing would be preferable to help with tourism, noting that the biggest accommodation providers were Air B’n’B and holiday parks. It was noted that part of the reason that people were hesitant to come to the region was the perceived lack of commercial accommodation.

·                There was hope that the numbers relating to cruises would increase, noting that there had been a shift in thinking in relation to the importance of the cruise sector under the current government.

·                It was acknowledged that both Te Arawa and Tauranga Moana should be referenced within the KPI’s for Cultural Wellbeing.

·                Despite not having a dedicated cruise passenger facility/terminal, Tauranga Port was listed number one for passenger satisfaction, as passengers were able to disembark directly from the boat and walk around town/Mauao. TBOP saw real benefit in having a passenger facility at the back of Coronation Park at some stage in the future.

·                They acknowledged the concern raised that although everyone was rated for this activity, they may not necessarily see the benefit. It was noted that TBOP was looking into the opportunity for a visitor levy attached to different services, to ensure those that were using the service were paying for it.

·                Where there was seasonality that put pressure on local resource, TBOP tried to focus on this area in relation to over tourism.

·                There were some programmes on TBOP’s agenda that they were continuing to work with. It was noted that there were local operators in Waihī Beach who were proactive in making Waihī Beach distinctive from the rest of Aotearoa.

Resolution  CL25-8.2

Moved:                         Cr M Murray-Benge

Seconded:         Cr A Sole

1.               That the Community and Strategic Relationships Manager’s report dated 26 June 2025 titled ‘Tourism Bay of Plenty Half Yearly Report to 31 December 2024 and Statement of Intent 2025-26 to 2027-28’ be received.

2.             That the report relates to an issue that is considered to be of low significance in terms of Council’s Significance and Engagement Policy.

3.             That Council receives Tourism Bay of Plenty’s Half Yearly Report to 31 December 2024, included as Attachment 1 to this report.

4.             That Council receives the Tourism Bay of Plenty Statement of Intent 2025-26 to 2027-28, included as Attachment 2 to this report.

5.             That Council notes that Tauranga City Council, as joint shareholder, received the Half Yearly Report to 31 December 2024 on 4 June 2025, and will receive the final Tourism Bay of Plenty Statement of Intent 2025-26 to 2027-28 at its Council meeting to be held on 15 July 2025.

Carried

9.2         General Rates Changes to 2025/26 Annual Plan

Council considered a report dated 26 June 2025 from the Chief Financial Officer. The General Manager Corporate Services supported this discussion by providing an overview of the ‘General Rate Funded Changes’ and rationale for each change, as highlighted in the report.

It was noted under the Transportation Savings rationale it should state: “As a result of the Transport Activity being brought in house, and cost efficiencies from the completion of the cycleway project from Tauranga to Ōmokoroa, savings were realised in the 2024/25 financial year.”

Staff responded to pātai as follows:

·                The savings number that related to personnel changes was 13 and would be able to be seen through the Annual Report.

·                The issues that had been occurring through Council’s current systems were due to loss of inhouse knowledge with staff leaving over the years, as well as the complex taxation structure and the current systems needing to be upgraded. It was noted that an improved review process had been implemented, and specialist advisors brought in to support this analysis. These improvements should see any last-minute changes mitigated in the future.

·                Staff reviewed water volumetric consumption and the option of increasing the volumetric charge and/or the fixed charge. Staff felt they had the balance right at this stage between the two, including the assumption on water usage. It was noted that, due to the volumetric charge increasing, there was still some risk if our community decided to reduce consumption and revenue was not met.

·                The rebuilding of the General Rate Reserve was required to ensure that Council could deal with emergencies/unknowns if required.

·                The General Rate Reserve was the ‘overs’ and ‘unders’ on all general rate activities.

·                The numbers discussed at the Audit, Risk and Finance Committee were the actuals for the 2024/25 year, including the landing position for that year. The changes presented today were from the time the draft Annual Plan had been issued and reflected what had been found through the review period.

·                With inflation and interest moving at the rate it was, although staff worked with the best figures known to date through the Long Term Plan, the Annual Plan was the opportunity for more accurate figures to be included for that particular year.

·                It was noted that as part of the sale of the Electricity Company in the 1980s/1990s, funds were put aside for disaster contingency, noting that there was currently $9.8 Million.

There was a suggestion from Councillors to consider the following points:

1.               That the Council write to the Auditor General requesting assistance in reviewing Council’s Internal Auditing Programme; and

2.             That the Council engages forensic accountants with Local Government experience to review the relevant Council finances.

The Interim Chief Executive noted that in relation to engaging forensic accountants, Council would need to determine what the purpose of the investigation would be, as it would need to have a particular focus. This would be an expensive and time-consuming exercise, so Council would have to determine the rationale. For these reasons, it would need further discussion, also noting that this was not common for councils to undertake. Annual Plan updates provided for the latest information to be reflected and rates to be set. The Interim Chief Executive noted that the Long Term Plan is a forecast.

In relation to Council’s Internal Auditing Programme, it was noted that this could be re-visited through the Audit, Risk and Finance Committee, including what Council wanted to consider and what the recommendations were. The Interim Chief Executive was supportive of this suggestion.  

It was suggested that a paper be brought to an Audit, Risk and Finance Committee workshop to revisit the Internal Audit Programme and consider any possible use of forensic accountants. For this reason, recommendation 2 was added.

Resolution  CL25-8.3

Moved:                         Cr R Joyce

Seconded:         Cr M Grainger

1.               That the Chief Financial Officer’s report dated 26 June 2025 titled ‘General Rates Changes to 2025/26 Annual Plan’ be received.

2.             That Council requests an Audit, Risk and Finance workshop be convened to revisit the Internal Audit Programme and consider any possible use of forensic accountants.

Carried

9.3         Recommendation to Council for the Adoption of the Annual Plan 2025/26, Financial Contributions Schedule 2025/26 and the Schedule of Fees and Charges 2025/26

Council considered a report dated 26 June 2025 from the Acting Policy and Planning Manager. The Deputy CEO/General Manager Strategy and Community took the report as read.

Resolution  CL25-8.4

Moved:                         Deputy Mayor J Scrimgeour

Seconded:         Cr D Thwaites

1.               That the Acting Policy and Planning Manager’s report dated 26 June 2025, titled ‘Recommendation to Council for the Adoption of the Annual Plan 2025/26, Financial Contributions Schedule 2025/26 and the Schedule of Fees and Charges 2025/26’, be received.

2.             That the report relates to an issue that is considered to be of medium significance in terms of Council’s Significance and Engagement Policy.

3.             In accordance with section 80 of the Local Government Act 2002, Council acknowledges that the decision to fund the Community Boards from the general rate in the Annual Plan 2025/26 is inconsistent with Council’s Revenue and Financing Policy. The reason is due to the timing of the Local Government Commission determination on the representation review which meant there was inadequate time for consultation on any changes to rating to occur.  Council intends to review the approach to funding for community boards as part of the Annual Plan 2026/27.

4.             That Council adopts the Annual Plan 2025/26 (Attachment 2 of this report), as recommended by the Annual Plan and Long Term Plan Committee.

5.             That Council adopts the Structure Plans (Attachment 3 of this report), as recommended by the Annual Plan and Long Term Plan Committee.

6.             That Council adopts the Financial Contributions Schedule 2025/26 (Attachment 4 of this report), supported by the Disclosure Tables for Financial Contributions 2025/26 (Attachment 5 of this report), as recommended by the Annual Plan and Long Term Plan Committee.

7.              That Council adopts the Schedule of Fees and Charges 2025/26 (Attachment 6 of this report), as recommended by the Annual Plan and Long Term Plan Committee.

8.             That the Chief Executive Officer be delegated authority to make such minor editorial changes to the final documents for publishing as may be required.

Carried

9.4         Setting of the Rates for 2025/26 Financial Year

Council considered a report dated 26 June 2025 from the Revenue Lead. The General Manager Corporate Services and Chief Financial Officer took the report as read.

Resolution  CL25-8.5

Moved:                         Cr M Murray-Benge

Seconded:         Cr M Grainger

1.               That the Revenue Lead’s report dated 2025 titled ‘Setting of the Rates for 2025/26 Financial Year’ be received.

2.             That the report relates to an issue that is considered to be of high significance in terms of Council’s Significance and Engagement Policy.

3.             That Council sets the rates set out in resolutions 4, 5 and, 6 under the Local Government (Rating) Act 2002, in accordance with the relevant provisions of the Funding Impact Statement in the Annual Plan for 2025/2026, on rating units in the district for the financial year commencing on 1 July 2025 and ending on 30 June 2026, noting that all rates shall be inclusive of Goods and Services Tax (GST).

4.             That Council approves the General Rate as follows:

General Rate

A general rate is set under section 13 of the Local Government (Rating) Act 2002 at:

-        A rate of $0.001064186 in the dollar of capital value on all rateable rating units         in the Western Bay of Plenty District.

5.             That Council approves the Uniform Annual General Charge as follows:

Uniform Annual General Charge:

-        A uniform annual general charge is set under section 15(1)(a) of the Local           Government (Rating) Act 2002 at: A rate of $700.00 per rating unit.

6.             That Council approves Targeted Rates as follows:

          Targeted Rates:

-        The following targeted rates are set under sections 16 and 17 of the Local          Government (Rating) Act 2002.

Council sets volumetric water targeted rates under section 19 of the Local

Government (Rating) Act 2002:

7.              That Council approves:

a)         Under section 55 of the Local Government (Rating) Act 2002 and                  Council’s Discount for early payment of rates in current financial year               Policy, a 3% discount will be applied where a ratepayer pays all prior                 year’s rates with no arrears owing, all current year rates in full except             volumetric water targeted rates, by the 25 September 2025

b)         Under section 24 of the Local Government (Rating) Act 2002 all General     and targeted rates will be due in two instalments, the first on 25                    September 2025 and the second on 25 March 2026. Volumetric water         targeted rates due dates are as per resolution 9 below.

c)         Under sections 57 and 58 of the Local Government (Rating) Act 2002, the             following penalties be applied to unpaid rates, except volumetric water     targeted rates (set under section 19 of the Local Government (Rating)              Act):

i.    A charge of 10 percent on so much of any rates assessed before 1 July 2025, which remains unpaid on 1 July 2025, will be applied as a penalty on or after 3 July 2025.

ii.   A charge of 10 percent on so much of any instalment that has been assessed after 1 July 2025 and which remains unpaid after the relevant due date as per 7(b) above, will be applied as a penalty on or after 27 September 2025 for instalment one and on or after 27 March 2026 for instalment two.

iii.  A charge of 10 percent on so much of any rates assessed before 1 July 2025, which remains unpaid six months after 7(c)(i) above will be applied as a penalty on or after 3 January 2026.

8.             In accordance with its Rates Postponement for Homeowners Aged Over 65 years Policy, the Western Bay of Plenty District Council sets a $50.00 postponement fee under section 88 of the Local Government (Rating) Act 2002 for the financial year.

A $50.00 fee will be added to the rates when Council grants postponement. This fee is non-refundable and covers the administration costs associated with processing the application.

9.             That Council approves Volumetric Water supply rates/invoices will be issued twice during the year.  The due dates for the financial year commencing 1 July 2025 and ending on 30 June 2026 are as follows:

Carried

9.5         Pukehina Development Fund Update and Next Steps

Council considered a report dated 26 June 2025 from the Community and Strategic Relationship Manager, who, supported by the Deputy CEO/General Manager Strategy and Community, provided an overview of the report and recommendations therein.

Staff responded to pātai as follows:

·                The panel would be made up of the recommended Elected Members and two members of the Residents and Ratepayer Association.

Resolution  CL25-8.6

Moved:                         Mayor J Denyer

Seconded:         Cr M Grainger

1.               That the Community and Strategic Relationship Manager’s report dated 26 June 2025 titled ‘Pukehina Development Fund Update and Next Steps’, be received.

2.             That the report relates to an issue that is considered to be of low significance in terms of Council’s Significance and Engagement Policy.

3.             That Council approves the list of projects to be funded from the Pukehina Development Fund, as set out in Attachment 1.

4.             That Council appoints Councillor Dally and Deputy Mayor Scrimgeour from the Te Puke/Maketu Ward to a grants panel to process applications from identified Pukehina community organisations for up to $25,000 each, as set out in the list of projects to be funded in Attachment 1.

Carried

9.6         Debenture Trust Deed Amendments

Council considered a report dated 26 June 2025 from the Financial Analyst. The Chief Financial Officer provided an overview of the report and recommendations therein.

Staff responded to pātai as follows:

·                This discussion could be added to the Audit, Risk and Finance Committee, and a report back requirement could be included in the recommendation.

Resolution  CL25-8.7

Moved:                         Cr R Joyce

Seconded:         Mayor J Denyer

1.               That the Financial Analyst’s report dated 26 June 2025 titled ‘Debenture Trust Deed Amendments’ be received.

2.             That the report relates to an issue that is considered to be of low significance in terms of Council’s Significance and Engagement Policy.

3.             That Council:

a.      Approves the proposed amendments to the Debenture Trust Deed to enable the issuance of Global Local Government Funding Agency (LGFA) Security    Stock.

b.      Authorises two elected members to sign the Deed of Amendment and    Restatement on behalf of Council.

c.       Authorises the Chief Executive to sign the Section 118 Certificate to   accompany the amendment.

d.      Requests that staff report back to the Audit, Risk and Finance Committee on   the progress of the Debenture Trust Deed amendments.

Carried

9.7         Appointment of Tangata Whenua Representative to SmartGrowth Leadership Group

Council considered a report dated 26 June 2025 from the Strategic Kaupapa Māori Manager. The Deputy CEO/GM Strategy and Community provided an overview of the report and the recommendations therein.

Staff responded to pātai as follows:

·                There was a particular process/tikanga for Tangata Whenua members to go through in nominating a representative to sit on the SmartGrowth Leadership Group.

·                For Elected Members this nomination took place at the beginning of the triennium.

·                The iwi/hapū determined their members, noting this did not need to happen every triennium like it did for Elected Members.

·                Te Kāhui Mana Whenua o Tauranga Moana had a representative on SmartGrowth, as well as Te Ihu o te Waka o Te Arawa.

Resolution  CL25-8.8

Moved:                         Cr L Rae

Seconded:         Cr G Dally

1.               That the Strategic Kaupapa Māori Manager’s report dated 26 June 2025 titled ‘Appointment of Tangata Whenua Representative to SmartGrowth Leadership Group’, be received.

2.             That the report relates to an issue that is considered to be of low significance in terms of Council’s Significance and Engagement Policy.

3.         That Council accepts the recommendation of Te Ihu o te Waka o Te Arawa and confirms the appointment of Darlene Dinsdale as a Tangata Whenua representative to the SmartGrowth Leadership Group.

4.             That Council notes the decision has also been confirmed by Tauranga City Council on 10 June 2025 and Bay on Plenty Regional Council on 24 June 2025.

Carried

9.8         Mayor's Report to Council

Council considered a report from the Mayor, which was taken as read.

The Mayor responded to pātai as follows:

·                He had met with S&P Global to discuss where Council was going and how it was looking, noting that it was a positive meeting, and they were generally happy. It was noted that there was a conversation about a potential rating downgrade, similar to what other Councils were experiencing, however this was something on which Council would have to wait and see.

·                It was noted that the next meeting with Sam Uffindell (Tauranga MP) and Tom Rutherford (Bay of Plenty MP) would be appropriate to have as an all Councillors meeting rather than only with the Mayor. It was noted that there had been an offer for the local Labour spokesperson to meet, to which the Mayor noted he could include all Councillors if they wished. 

Resolution  CL25-8.9

Moved:                         Mayor J Denyer

Seconded:         Cr A Sole

That the Executive Assistant - Mayor/CEO’s report dated 26 June 2025 title ‘Mayor’s
Report to Council - 26 June 2025 be received

Carried

11.3         Te Puke Wastewater Treatment Plant Upgrade - Funding Model

Resolution  CL25-8.11

Moved:                         Cr R Joyce

Seconded:         Cr D Thwaites

1.        That the Infrastructure Capital Delivery Manager’s report dated 26 June 2025 titled ‘Te Puke Wastewater Treatment Plant Upgrade – Funding Model’ be received.

2.       That the report relates to an issue that is considered to be of medium significance in terms of Council’s Significance and Engagement Policy.

3.       That Council approves in principle that the updated funding model for the Te Puke Wastewater Treatment Plant be:

a.      41.9 % - Existing ratepayers (via the Wastewater Uniform Targeted Rate),

b.      12.5 % - Te Puke Growth Stage A (via financial contributions),

c.       9.7 % - Te Puke Growth Stage B (via financial contribution loan to be recovered        by financial contributions at a later stage, once planning enables it.),

d.      35.9 % - Rangiuru Business Park. 

4.       That Council approves the increase in funding on behalf of Rangiuru Business Park from $15M to $17.3M. This is the portion of the development costs to be held as a financial contribution loan by Council and recovered across the business park staged development, from developers, including Quayside. The interest costs associated with the loan are additional to the $17.3M.

5.       That Council approves financial contribution loan funding of $8.7M, plus an allowance for interest in Council’s financial contribution models. The Growth Stage B costs will be recovered through financial contributions or other methods (subject to changes in legislation), once planning enables the growth to occur.

6.      That the Resolution only be transferred into the open section of the meeting following the Council meeting held 26 June 2025.

Carried