Finance Committee

MINUTES

Confirmed Minutes of an ordinary meeting of the Finance Committee held in the Edinburgh Room, Municipal Chambers, The Octagon, Dunedin on Monday 18 July 2016, commencing at 1.40 pm.

PRESENT

Chairperson	Cr Richard Thomson
Deputy Chairperson	Cr Hilary Calvert
Members	Cr David Benson-Pope	Cr John Bezett
	Cr Doug Hall	Cr Aaron Hawkins
	Cr Jinty MacTavish	Cr Andrew Noone
	Cr Neville Peat	Cr Lee Vandervis
	Cr Kate Wilson

IN ATTENDANCE

Grant McKenzie (Group Chief Financial Officer), Gavin Logie (Financial Controller), Kristy Rusher (Manager, Civic and Legal), Carolyn Allan (Senior Management Accountant), Tami Sargeant (Senior Policy Analyst) and Sarah Bedford (Communications Advisor)

Governance Support Officer      Wendy Collard

1       Public Forum

There was no Public Forum.   

2       Apologies
	Moved (Cr Richard Thomson/Cr Hilary Calvert): that the Committee Accepts the apologies from Mayor Dave Cull and Councillors Mike Lord, Chris Staynes and Andrew Whiley. Motion carried (FIN/2016/001)

The Chairperson thanked the Group Chief Financial Officer (Grant McKenzie) for his contribution to the Dunedin City Council during his time with Council and noted achievements which included the establishment of the Audit and Risk Subcommittee, improved insurance cover and his leadership which enabled the development of a number of Policies and improved property management.  Councillor Thomson wished him well in his new role as CEO of Allied Press.

Mr McKenzie responded that he was just a member of a larger team who had delivered a lot of these improvements and that he was just doing his job and assisting in making Dunedin a great place to live, work and play.

3       Confirmation of agenda
	Moved (Chairperson Richard Thomson/Cr Doug Hall): that the Committee Confirms the agenda without addition or alteration Motion carried (FIN/2016/002)

4       Declarations of interest

Members were reminded of the need to stand aside from decision-making when a conflict arose between their role as an elected representative and any private or other external interest they might have.

There were no declarations of interests made or conflicts of interest declared.

Part A Reports

5       Financial Result - Period Ended 31 May 2016
	A report from Finance provided the financial results for the period ended 31 May 2016 and the financial position as at that date. The Group Chief Financial Officer (Grant McKenzie) spoke to the report and advised that the overall Council operating deficit of $3.685 million as at May 2016 represented a $2.095 million favourable variance against budget.  Mr McKenzie commented that the total Council debt as at 31 May 2016 was $226.052 million and noted that it was $25.636 million lower than budget.
	Moved (Cr Richard Thomson/Cr Hilary Calvert): that the Committee a)     Notes the Financial Performance for the period ended 31 May 2016 and the Financial Position as at 31 May 2016. Motion carried (FIN/2016/003)

6       Rating Adjustment Possibilities for Māori Freehold Land
	A report from Finance provided rating adjustment possibilities for Maori freehold land.  The report noted that this had been requested following a submission to the 2016/17 Annual Plan from Ngai Tahu Maori Law Centre which requested changes be made to the Council's current remission of rates policy for Maori freehold land. It also noted that a revised policy could be developed in consultation with key stakeholders which would include the Maori Participation Working Party, Kai Tahu ki Otago and Ngai Tahu Maori Law Centre and feedback from the Finance Committee. The Financial Controller (Gavin Logie) and the Senior Management Accountant (Carolyn Allan) spoke to the report and responded to questions on the Rates Remission Policies that Council currently had, any budgetary implications that the development of a Maori Freehold Land Rates Remission Policy might have and cultural significance for Maori freehold land owners.
	Moved (Cr Jinty MacTavish/Cr David Benson-Pope): that the Committee a)     Request staff develop a revised policy providing for the remission of rates on Maori freehold land, noting that consideration would be on a case by case basis, under appropriate circumstances Motion carried (FIN/2016/004) with Councillor Vandervis recording his vote against

Part B Reports

7       Rates Rebate - Occupational Right Agreements
	A report from Finance provided the provision of a rates rebate for residents of retirement villages whose property ownership was governed by an "Occupational Right Agreement (ORA) or "Licence to Occupy Agreement (LTO)".  It identified the potential pool of residents who might seek to apply for the rebate based on a survey of the affected retirement villages, along with estimated costings of the proposal. The report noted that a Private Members Bill related to the topic had been developed and was awaiting its first reading in Parliament.
	Moved (Cr Kate Wilson/Cr John Bezett): that the Committee a) Lays Item 7- Rates Rebate – Occupational Right Agreements Report on the table. b) Notes that an update on the Rates Rebate (Retirement Village Residents) Amendment Bill will be provided to the incoming Council. Motion carried (FIN/2016/005)
	Moved (Cr David Benson-Pope/Cr Lee Vandervis): that the Committee a) Requests that staff petition Central Government to expedite the Rates Rebate (Retirement Village Residents) Amendment Bill Motion carried (FIN/2016/006)

8       Notification of Agenda Items for Consideration by the Chair
	There were no items identified.

The meeting concluded at 2.52 pm.

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CHAIRPERSON