23 February 2022
Mr John Robson
By email: [FYI request #18338 email]
Tēnā koe John
INFORMATION REQUEST – Stormwater Reserve - Redirection of finances
We write in response to your email dated 26 January 2022 in which you requested the
following information:
Regarding the recent public statements concerning the $29million Pacific
Apartments settlement, and, in particular, the “redirection” of finances from the
council’s stormwater fund, could you please advise:
o
What is the current value of the stormwater fund?
o
What is the total targeted rate applied to the fund (by financial year) since
its inception?
o
How much has been used by the Stormwater Activity (by financial year)?
o
How much has been ‘redirected’ to date, and for what purpose (by
financial year)?
o
What further ‘redirections’ are planned, and for what purpose (by
financial year)?
Given the publicly stated intent at the time of the targeted rate’s creation was
that it would only be used for the Stormwater Activity, can you please advise:
o
Whether there has been a formal decision to vary the intended purpose
of the targeted rate?
o
And, if yes, can you please provide all records (correspondence, advice,
reports, etc.) relevant to that decision?
And, finally, given the recent creation of a number of targeted rates, can you
please advise:
o
Is it possible that these new targeted rates could themselves be
‘redirected’?
o
And, if yes, what the process would be for such a redirection to occur?
We have considered your request in accordance with the Local Government Official
Information and Meetings Act 1987 (“
LGOIMA”) and respond as follows:
Tauranga City Council Private Bag 12022, Tauranga 3143, New Zealand +64 7 577 7000 [Tauranga City Council request email] www.tauranga.govt.nz
What is the current value of the stormwater fund?
The current value of the Stormwater Reserve is approximately $12 million plus $1
million assessed for the current rating year minus any expenditure this year.
What is the total targeted rate applied to the fund (by financial year) since its
inception?
How much has been used by the Stormwater Activity (by financial year)?
The Stormwater Reserve was funded through the general rate from 2015 until 2021.
At its inception in 2015 it was described as a stormwater levy funded through the
general rate.
In 2021 the amount of budget allocated for the stormwater levy for the purposes of
flood event response and flood modelling, was included in the new Stormwater
targeted rate rather than the general rate.
The table in Attachment 1 (at the end of this letter) shows the amount of budget that
has been allocated to the Stormwater Reserve through the general rate and the new
targeted rate, and the amount of annual expenditure by year. In the last two years the
interest on the Stormwater Reserve has been more than any expenditure.
How much has been ‘redirected’ to date, and for what purpose (by financial
year)?
The Stormwater Reserve has not been redirected for any other purpose.
What further ‘redirections’ are planned, and for what purpose (by financial year)?
There are no plans to redirect funds from the Reserve.
Whether there has been a formal decision to vary the intended purpose of the
targeted rate? And, if yes, can you please provide all records (correspondence,
advice, reports, etc.) relevant to that decision?
The intended purpose of the Stormwater targeted rate has not been changed.
At the council meeting of 6 December 2021 the Commissioners, in order to mitigate
the overall impact of rates liabilities on our community, agreed to reduce the future
budgeted debt reduction program in the stormwater activity and redirect an equivalent
debt retirement on unfunded liabilities, including weathertight claim settlements.
We have attached the relevant section 11.9 of the 6 December 2021 Council meeting
Agenda as Attachment 2 at the end of this letter.
You can view the full report and the minutes, when available, from this meeting on
councils website at https://www.tauranga.govt.nz/council/about-your-council/council-
meetings-agendas-and-minutes
Given the recent creation of a number of targeted rates, can you please advise:
o
Is it possible that these new targeted rates could themselves be
‘redirected’?
o
And, if yes, what the process would be for such a redirection to occur?
There is no intention to redirect any funds collected through targeted rates. From a
Local Government Act 2002 perspective, while it is not expected that funds collected
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through a targeted rate would be redirected, it is possible. Under that Act, at the very
least, any reapplication of the rate proceeds would need to have been the
subject of specific consultation. This consultation would need to explain why the
funds were no longer needed for the intended purpose, and why the new purpose is
appropriate.
You have the right to seek an investigation and review by the Ombudsman of this decision.
Information about how to make a complaint is available at www.ombudsman.parliament.nz
or freephone 0800 802 602.
We may publish this response on our website as your request may be of interest to others.
All personal information will be removed and only the question and answers will be seen.
If you wish to discuss this decision with us, please feel free to contact the writer.
Ngā mihi
Coral Hair
Manager
Democracy Services
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Attachment 1
Table 1 - Stormwater Reserve contributions and expenditure 2015 - 2022
Stormwater
2015
2016
2017
2018
2019
2020
2021
2022
Reserve
Opening
$ -
$27,539
$2,320,719 $4,128,170 $6,259,381 $7,129,688
$9,588,363
$11,891,962
Balance
Revenue
$5,000,000 $3,400,000
$2,300,000 $2,300,000 $2,300,000 $2,300,000
$2,300,000
(general rate)
Revenue
$1,000,000
(targeted rate)
Expenditure
$4,972,461 $1,106,820
$492,549
$168,789
$1,429,693 -$158,675 -$3,598
(Stormwater)
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Attachment 2: Section 11.9 Ordinary Council meeting Agenda – 6 December 2021
Ordinary Council meeting Agenda
6 December 2021
11.9 Annual Plan 2022/23 Key Issues and Approach
File Number: A13073604
Author: Kathryn Sharplin, Manager: Finance
Josh Logan, Team Leader: Corporate Planning
Authoriser: Paul Davidson, General Manager: Corporate Services
PURPOSE OF THE REPORT
1. In accordance with the Local Government Act 2002, Council is required to produce and
adopt an annual plan, by 30 June 2022.
2. This report provides an update of the Annual Plan 2022/23 key issues and proposed
approach.
RECOMMENDATIONS
That the Council:
(a) Receives the report Annual Plan 2022/23 Key Issues and Approach.
(b) Confirms the focus of the Annual Plan 2022/23 remains what was agreed to in
the 2021-31 Long-term Plan.
(c) Agrees the timetable and approach for the Annual Plan.
(d) Agrees to redirect $1.1m debt retirement proposed for stormwater debt in 2023
to instead retire $1.1m of debt associated with existing unfunded liabilities
(e) Notes that in future Annual Plan processes the portion of stormwater debt
retirement above $1.3m per annum proposed in subsequent years of the LTP
could be diverted to retire debt associated with unfunded liabilities until that
debt is extinguished.
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