Supplementary Agenda of Annual Plan Council

Notice of Meeting:

I hereby give notice that an ordinary meeting of the Annual Plan Council will be held on:

Date: Monday 31 January 2022

Time: 9.00 am

Venue: Vias Audio Visual Link

Sandy Graham

Chief Executive Officer

Council Annual Plan

SUPPLEMENTARY AGENDA

MEMBERSHIP

Mayor	Mayor Aaron Hawkins
Deputy Mayor	Cr Christine Garey
Members	Cr Sophie Barker	Cr David Benson-Pope
	Cr Rachel Elder	Cr Doug Hall
	Cr Carmen Houlahan	Cr Marie Laufiso
	Cr Mike Lord	Cr Jim O'Malley
	Cr Jules Radich	Cr Chris Staynes
	Cr Lee Vandervis	Cr Steve Walker
	Cr Andrew Whiley

Senior Officer Sandy Graham, Chief Executive Officer

Governance Support Officer Lynne Adamson

Lynne Adamson

Governance Support Officer

Telephone: 03 477 4000

Lynne.Adamson@dcc.govt.nz

www.dunedin.govt.nz

Note: Reports and recommendations contained in this agenda are not to be considered as Council policy until adopted.

Annual Plan Council

31 January 2022

Part A Reports

Annual Plan Budget Update - Governance and Support Services

Department: Executive Leadership Team

EXECUTIVE SUMMARY

1 This report provides an overview of the operating expenditure (opex) budgets for the 2022/23 Annual Plan year for the Governance and Support Services Group. The following activities are provided for:

· Business information services

· Civic and administration

· Civil defence

· Communications and marketing

· Corporate leadership

· Corporate policy

· Customer services agency

· Finance

· Fleet operations

· Human resources

2 A schedule of proposed fees and charges for the 2022/23 year is also presented at Attachment B.

RECOMMENDATIONS

That the Council:

a) Approves the draft 2022/23 operating budget for the Governance and Support Services Group as shown/amended at Attachment A.

b) Approves the draft 2022/23 fees and charges schedules for Governance and Support Services as shown/amended at Attachment B.

operating budgets

Revenue

Rates

3 The rates contribution for this Group has decreased by $5.572 million, reflecting the transfer of funding to support departments with increased depreciation costs – see external revenue comment below.

External Revenue

4 External revenue has increased by $5.894 million. The draft budget includes a $5.500 million dividend from Dunedin City Holdings Limited to assist with the funding of increased depreciation across Council. DCHL has indicated that, due to the performance of the companies, there is an unexpected dividend available.

5 Other revenue increases relate to the recovery of local body election costs and the transfer of Land Information Memorandum (LIM) revenue from Building Services.

Expenditure

Personnel Costs

6 Personnel costs have increased by $340k, 2.0%. This increase combines the following key changes:

· Additional resources to deliver on the Maori Partnerships and zero carbon initiatives

· Additional resources in the Major Projects and Procurement teams, to enable more efficient project delivery and insourcing

7 The increase in personnel costs have been partially offset by a $1.500 million increase to the vacancy allowance.

Operations and Maintenance

8 Operations and maintenance costs have increased by $67k.

9 This increase combines the following key changes:

a) $1.183 million increase in contract costs in BIS reflecting the requirement to support an increase in users and additional systems and applications,

b) $541k costs associated with the 2022-2023 local body elections,

10 The increase in operations and maintenance costs have been partially offset by a $1.500 million saving.

Consumables and general costs

11 Consumables and general costs have decreased by $456k.

12 This increase combines the following key changes:

a) An increase of $393k in BIS provides for software licence fees, specialist advice for LIM applications and aerial photography.

b) An increase of $133k in Civic and Administration relates to elected member remuneration and other administrative costs.

13 The increase in consumables and general costs have been partially offset by a $1.000 million saving.

Depreciation

14 Depreciation has increased by $874k relating to capital expenditure in BIS and Fleet Operations.

FEES and charges

15 There are no changes to the fees and charges schedule.

Signatories

Authoriser:

Gavin Logie - Chief Financial Officer

Attachments

	Title	Page
⇩a	Governance and support services draft budget for 2022/23	9
⇩b	Governance and support services draft fees and charges for 2022/23	10

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This decision enables democratic local decision making and action by, and on behalf of communities, and promotes the social economic, environmental, and cultural well-being of communities in the present and for the future.

Fit with strategic framework

	Contributes	Detracts	Not applicable
Social Wellbeing Strategy	☒	☐	☐
Economic Development Strategy	☒	☐	☐
Environment Strategy	☒	☐	☐
Arts and Culture Strategy	☒	☐	☐
3 Waters Strategy	☒	☐	☐
Spatial Plan	☒	☐	☐
Integrated Transport Strategy	☒	☐	☐
Parks and Recreation Strategy	☒	☐	☐
Other strategic projects/policies/plans	☒	☐	☐

The Governance and Support Services Group contributes to the delivery of all of the objectives and priorities of the strategic framework.

Māori Impact Statement

Council budgets impact broadly across all Dunedin communities including Māori. The Council is committed to developing ongoing relationships with Māori communities, particularly with mana whenua. Strategic projects that have significance to Māori have been identified from across the organisation and these projects will work collaboratively with the Maori Partnerships Manager to ensure beneficial outcomes for Māori are achieved.

Sustainability

The Annual Plan is not proposing any changes to that provided for in the 10 year plan. Major issues and implications for sustainability are discussed and considered in the 50 year Infrastructure Strategy and financial resilience is discussed in the Financial Strategy of the current 10 year plan 2021-31.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides a draft budget for the Governance and Support Services Group for inclusion in the draft 2022/23 Annual Plan.

Financial considerations

Financial considerations are detailed in the report.

Significance

The 10 year plan 2021-31 budgets were considered significant in terms of the Council’s Significance and Engagement Policy, and were consulted on. Variations to those budgets as discussed in this report are not considered significant in terms of the policy.

Engagement – external

There has been no external engagement in updating the draft budget for the Governance and Support Services Group.

Engagement - internal

Staff and managers from across council have been involved in the development of the draft budget.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Projects identified in Community Board Plans were considered in the development of the budgets for the 10 year plan, and Community Boards were consulted at this time. Community Boards will have an opportunity to present on the draft 2022/23 Annual Plan.