Notice of Meeting:

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

 

Date:                                                    Tuesday 28 January 2025

Time:                                                   9:00 a.m.

Venue:                                                Council Chamber, Dunedin Public Art Gallery, The Octagon, Dunedin

 

Sandy Graham

Chief Executive Officer

 

Council

Public AGENDA – part two

 

MEMBERSHIP

 

Mayor

Mayor Jules Radich

 

Deputy Mayor

Cr Cherry Lucas

 

 

Members

Cr Bill Acklin

Cr Sophie Barker

 

Cr David Benson-Pope

Cr Christine Garey

 

Cr Kevin Gilbert

Cr Carmen Houlahan

 

Cr Marie Laufiso

Cr Mandy Mayhem

 

Cr Jim O'Malley

Cr Lee Vandervis

 

Cr Steve Walker

Cr Brent Weatherall

 

Cr Andrew Whiley

 

 

Senior Officer                                               Sandy Graham, Chief Executive Officer

 

Governance Support Officer                  Lynne Adamson

 

 

 

Lynne Adamson

Governance Support Officer

 

 

Telephone: 03 477 4000

governance.support@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.

 

 

 


Council

28 January 2025

 

 

ITEM     TABLE OF CONTENTS                                                                                                                                    PAGE 0

Reports

26           Draft Festival and Events Plan and Implementation Options                                                                  4

27           Ōtepoti Live Music - Draft Investment Plan for 9 year plan 2025-34                                               115

28           Performing Arts Venue Proposal - 9 year plan 2025-34                                                                        125

29           Potential Entry Charges at Cultural Institutions                                                                                       207

30           Vibrant Economy - Draft Operating Budget 9 year plan 2025-34                                                      220

31           Governance and Support Services - Draft Operating Budget 2025/26                                            230

32           Resilient City - Draft Operating Budget 9 year plan 2025-34                                                              243

33           Citywide Climate Resilience Framework                                                                                                     253

34           Centres Upgrade Programme                                                                                                                         269

35           Ōtepoti Dunedin Heritage Action Plan: Implementation Options                                                     280

36           Regulatory Services - Draft Operating Budget 9 year plan 2025-34                                                 300

37           Treaty Partnership - Draft Operating Budget 9 year plan 2025-34                                                   324

38           Grants Review Update                                                                                                                                      332

39           City Profile Snapshot - 9 year plan 2025-34                                                                                              346

40           Future of Dunedin Railways Ltd - 9 year plan 2025-34                                                                          365

41           Central City Plan Business Case Update                                                                                                      386

42           Review of Significance and Engagement Policy - 9 year plan 2025-34                                            395

43           Waipori Fund SIPO Review                                                                                                                              416

44           Treasury Risk Management Policy Review                                                                                                 447

45           Compliance with the Revenue and Financing Policy                                                                              491

46           Rating Method - 2025/26                                                                                                                                 499

47           Rates Remission and Postponement Policy Review                                                                               511

48           Updated meeting schedule 2025                                                                                                                  539

49           Public Consultation Dates for the Draft Waste Management and Minimisation Plan 2025    543

50           Proposed Event Road Closures                                                                                                                       558  

 

RESOLUTION TO EXCLUDE THE PUBLIC                                                                                                      569  

 


Council

28 January 2025

 

Reports

 

Draft Festival and Events Plan and Implementation Options

Department: Enterprise Dunedin

 

 

 

 

EXECUTIVE SUMMARY

1          This report recommends that Council note the draft 2025 Dunedin Festivals and Events Plan and consider funding options for implementation as part of the 9-year plan 2025-34 consultation process.

2          The draft 2025 Dunedin Festivals and Events Plan (the Plan) was developed following engagement with the local community, key stakeholders and national industry and government entities (Attachment A).

3          Two implementation plans (Community Events and Major Events) have been developed and are included for consideration (Attachment B and C). Detailed expenditure rationales are attached to support funding decisions (Attachment D).

4          The current events delivery budget of $569,900 per annum is insufficient to address rising costs or support new initiatives, limiting the Plan’s potential without additional investment.

5          A final version of the Plan will be presented to Council for adoption after it determines its investment level for Events, i.e.  

-           status quo

-           medium increase in the community events budget

-           significant increase in the major events budget, or

-           significant combined increase for both community and major events budgets

-           another option to be determined.

6          The Plans do not assume the outcome of the Enterprise Dunedin review (including Events), set for completion by July 2025, or the recommendations from the DVML and Stadium Property review.

RECOMMENDATIONS

That the Council:

 

a)         Notes the draft 2025 Dunedin Festival and Events Plan.

b)        Notes the costed Implementation Plans (Community Events and Major Events).

c)         Decides investment levels in the 9-year plan 2035-34 to support the delivery of the Plans outcomes. 

BACKGROUND

7          The Festival and Events Plan 2018–2023 is due for renewal, offering a chance for a strategic reset.

8          Staff agreed to bring a refreshed Plan supported by costed implementation plans to council to inform 9 year plan 2025-34 discussions.

9          Staff held workshops in August and September 2024 with 74 representatives from diverse sectors focusing on community and major events to help set objectives and outcomes and staff have also consulted with mana whenua via our Māori partnerships team. A list of workshop attendees is included (Attachment E).

10        Challenges identified included:

·        The current Festivals and Events Plan lacks clear implementation pathways, realistic budgets, and cultural representation. 

·        Existing funded events and council run events lack robust performance measures with no dedicated events measurement tool to track success of council funded events in a consistent manner.

·        The city relies heavily on DVML for major event bids, a costly and high-risk approach that lacks a broader strategy to attract, develop, and retain events beyond its venues and limiting the diversity and appeal of event offering.

·        Competitors like Christchurch (new stadium in 2026) and Central Otago are emerging as event leaders, pressuring Dunedin to stay competitive.

11        The Plan proposes diversifying the event strategy, hosting major events beyond Forsyth Barr Stadium to strengthen destination marketing and reduce single point dependence on one-off concerts and sports events, in favour of a city-wide strategy to develop a year-round calendar of events spread across venues throughout the city. 

12        The Plan proposes additional budget to refresh the current events portfolio.

13        The Plan aims to redefine Dunedin’s event strategy, align with city unique selling points and outline costed pathways to deliver long-term economic and social benefits through an updated city events portfolio and plan.

14        Council has received 29 submissions with 22 submitters named, 7 anonymous and three submitters willing to speak if hearings were required.  Submissions are available in DCC consult for elected members.  Submissions, which closed on Monday 20 January 2025, are still being analysed and available in DCC Consult, however an initial assessment would indicate a majority of submitters support parts or all of the Plan.  A list of submitters is attached (Attachment F).

15        The Ōtepoti Dunedin Destination Plan, and Ōtepoti Live Music Action Plan, support the refreshed Festival and Events Plan, highlighting the need for a signature event and a refreshed event portfolio to bolster Dunedin’s identity.

DISCUSSION

16        The Festival and Events Plan envisions Dunedin as a vibrant city enriched by memorable, inclusive events. Events that celebrate diversity, boost community wellbeing, attract visitors, and align with the city’s brand. It provides strategic pathways for community-led and major events to grow sustainably, reflecting the Council’s commitment to strengthening Dunedin’s events through focused, actionable plans underpinned by realistic budget provision.

17        For Community events, the Plan seeks to enhance Dunedin’s local appeal, celebrate inclusivity, and foster a strong identity. For Major events, it outlines strategies to increase visitation, drive tourism, stimulate economic growth, diversify our portfolio, elevate the city’s profile, and enhance its appeal as a place to live, work, and invest.

18        The unbudgeted forecasted implementation cost for community and major events for the three-year period is as follows:

·        2026/27: $1,218,500

·        2027/28: $1,644,000

·        2028/29: $1,542,000

 

19        The Plans are independent of the Enterprise Dunedin review (including Events), scheduled to conclude by July 2025, and do not incorporate the findings of the Ernst & Young review of DVML and Stadium Property. Given the timing, the review recommendations may differ from the decision made at this meeting.

OPTIONS Option One – Note the Draft Plan and fund both the Community Events and Major Events Implementation Plans. 

20        The Council notes the draft Festival and Events Plan and includes budget provision to implement the attached three-year Implementation Plans as part of the 9-year plan 2025-34 budget allocations.  

·        2026/27: $1,218,500

·        2027/28: $1,644,000

·        2028/29: $1,542,000

 

Impact assessment

Debt

·        No debt funding is required for this option.

Rates

·        Rate funding would be required to fund this option with the rate increase occurring in the second year.

Zero carbon

·        This option may increase city emissions, because additional major events are likely to result in increased transport emissions. However, there are also aspects of the implementation plan that help to reduce emissions impacts from major events.

·        Community events are not likely to materially impact on city emissions. While travel to events may result in some transport emissions, there are actions in the implementation plan to reduce these. Providing appealing and inclusive events close to communities may support lower emissions lifestyles and support the Zero Carbon Plan key shift of “strengthening local communities.”

·        Some of the actions in the implementation plan have been identified as a priority from an emissions reduction perspective (refer ‘Zero Carbon Investment Options’ report under separate cover).

Advantages

·        Strengthens community outcomes by enhancing social connectedness and sense of community.

·        Drives economic benefits through increased visitation and spending.

·        Builds on the success of existing events while introducing new, sustainable commercial models.

·        Provides long-term growth and stability for the event sector through strategic investment.

·        Positions Dunedin to attract and retain high-value major events.

·        Boosts visitation to benefit residents, businesses, and the economy.

·        Enhances Dunedin’s profile by showcasing its brand pillars and natural assets. 

·        Creates a balanced, year-round events calendar, particularly targeting off-peak periods.

·        Capitalises on opportunities to strengthen Dunedin’s events sector while Christchurch’s new stadium establishes itself.

Disadvantages

·        Requires increased investment into events with a rates impact.

·        Does not allow time to make a decision that takes into account recommendations from the review of Enterprise Dunedin, due for completion in July 2025.

·        May not align with the recommendations of the Enterprise Dunedin Review or the DVML & Stadium Property Review.

 

Option Two – Note the Draft Plan and decides the level of funding for the Community Events Implementation Plan.

21        The Council notes the draft Festival and Events Plan and provides for the costed Community Events Implementation Plan in the 9-year plan budget allocations, noting that key major event aspirations will not be delivered under this option, including planning and delivery for the solar eclipse major event in 2028 (Attachment G & H).  

·        2026/27: $375,250

·        2027/28: $397,250

·        2028/29: $395,250

Impact assessment

Debt

·        No debt funding is required for this option.


 

Rates

·        Rate funding would be required to fund this option with the increase occurring in the second year.

Zero Carbon

·        Community events are not likely to materially impact on city emissions. While travel to events may result in some transport emissions, there are actions in the Implementation Plan to reduce these. Providing appealing and inclusive events close to communities may support lower emissions lifestyles and support the Zero Carbon Plan key shift of “strengthening local communities.”

·        Some of the actions in the Implementation Plan have been identified as a priority from an emissions reduction perspective (refer ‘Zero Carbon Investment Options’ report under separate cover).

 

Advantages

·        Delivers outcomes for communities by enhancing social connectedness and supporting local events. 

·        Provides a strategic framework for Community and Local events.

·        Ensures incremental improvements to the Community events portfolio.

 

Disadvantages

·        Limits the impact on Dunedin’s global and national profile with a portfolio of largely local events.

·        Missed opportunity to capitalise on Christchurch’s stadium development period to strengthen the local events sector and ensure we retain our local talent in the sector. 

·        Risk of a decline in the growth of regional events and ability to attract Major events.

·        Missed chance to introduce new commercial models and sustain long-term growth in the events sector. 

·        Limits potential for profiling Dunedin’s unique brand and natural assets.

·        Missed opportunity to capitalise on the total solar eclipse, a unique event opportunity of international significance.

·        May not align with the recommendations of the Enterprise Dunedin Review or the DVML & Stadium Property Review.

 

Option Three – Note the Draft Plan and decides the level of funding for the Major Events Implementation Plan.

22        The Council notes the draft Festival and Events Plan and provides for the costed Major Events Implementation Plan in the 9-year plan budget allocations, noting that community event aspirations will be not delivered under this option.  Under this option Councillors may opt to remove funding for a city Solar Eclipse event resulting in a savings of $700k in the latter years. 

·        2026/27: $843,250

·        2027/28: $1,246,750

·        2028/29: $1,146,750

Impact assessment

Debt

·        No debt funding is required for this option.

Rates

·        Rate funding would be required to fund this option, with the increase occurring in the second year.

Zero Carbon

·        This option may increase city emissions, because additional major events are likely to result in increased transport emissions. However, there are also aspects of the Implementation Plan that aim to reduce the emissions impact of events. These actions will help to reduce emissions impacts from major events.

Advantages

·        Drives economic benefits through increased visitation and spending.

·        Builds on the success of existing events while introducing new sustainable commercial models.

·        Provides long-term growth and stability for the event sector through increased investment.

·        Positions Dunedin to attract and retain high-value major events. 

·        Enhances Dunedin’s global profile by showcasing its brand pillars and natural assets.

·        Creates a balanced, year-round events calendar, particularly targeting off-peak periods.

·        Creates opportunities to strengthen Dunedin’s events sector while Christchurch’s new stadium establishes itself.

 

Disadvantages

·        Possible decline in the growth of local and community events.

·        May not align with the recommendations of the Enterprise Dunedin Review or the DVML and Stadium Property Review.

Option Four – Status Quo

23        The Council chooses to delay or cease work as outlined in the Draft Festivals and Events Plan and Implementation Plans.

Impact assessment

Debt

·        No debt funding is required for this option.

Rates

·        No rate funding would be required to fund this option.

Advantages

·        No additional financial contribution would be required.

·        The outcome of the review of Enterprise Dunedin would be known prior to further work being undertaken, if any.

·        Recommendations from the DVML and Stadium Property Review could be taken into account for future considerations.

 

Disadvantages

·        Missed opportunity to boost visitation.

·        Unable to capitalise on Christchurch’s stadium establishment phase.

·        Missed opportunity to showcase Dunedin and its natural assets to domestic and international audiences.

·        Possible stagnation of the city events portfolio.

·        Risk of a reliance on the Forsyth Barr Stadium as the primary venue for major events.

·        Decreased potential to attract and retain high-value major events.

·        Reduced ability to offer a year-round calendar of events, particularly during off-peak periods.

 

NEXT STEPS

24        Next steps will depend on the decision Council makes regarding the level of investment, if any for the Festival and Events Plan.  Depending on the funding decision, the Festival and Events Plan will be presented for adoption at a future Council meeting.

Signatories

Author:

Sian Sutton - Dunedin Destination Manager

Authoriser:

Nicola Morand - Manahautū (General Manager Policy and Partnerships)

Attachments

 

Title

Page

a

Draft Dunedin Festivals and Events Plan 2025

14

b

Draft Community and Local Events Implementation Plan

46

c

Draft Major and Regional Events Implementation Plan

54

 


 

SUMMARY OF CONSIDERATIONS

 

Fit with purpose of Local Government

This decision enables democratic local decision making and action by, and on behalf of communities.

This decision 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

Future Development Strategy

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

Māori Impact Statement

Adoption of the new Plan would provide the opportunity for greater outcomes for Māori through closer collaboration with mana whenua and the Māori community.

Sustainability

Waste and Environmental Solutions have been involved in the drafting of the Festival and Events Plan and the two costed Implementation Plans and feedback has been integrated throughout.

 

Adoption of the Plan would likely provide better economic, social, and environmental outcomes for the city.

Zero carbon

Zero Carbon have been involved in the drafting of the Festival and Events Plan including the two costed Implementation Plans and feedback has been integrated throughout. Additional major events may increase city emissions. Community events are not likely to materially impact on city emissions. The Festival and Events Plan includes clear links to the Zero Carbon Policy and actions to minimise emissions, including some actions that have been assessed as a priority for Zero Carbon investment.

 

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

Currently there is no budget allocated within the 9 year plan 2025-34 for the two Implementation Plans.

Financial considerations

The Festival and Events Plan requests for an unbudgeted ongoing cost to deliver the implementation plans. Costs are as follows:

·          2026/27: $1,218,500

·          2027/28: $1,644,000 

·          2028/29: $1,542,000 

Significance

The decision is considered low in terms of the Council’s Significance and Engagement Policy.

Engagement – external

In drafting the Festival and Events Plan there has been considerable consultation with public including hosting three workshops with the events, business industries, and the wider community with 74 representatives attended. Feedback from these groups have been incorporated into the Plan. The submission period has been open for a total of 22 working days with 29 submissions received to date.

Engagement - internal

In August and September 2024 staff engaged in a number of workshops to get guidance on the strategic direction and themes that were then raised through public consultation workshops. There were also numerous internal workshops across departments that could be involved in areas of the events industry. Māori Partnerships has been involved in the drafting of the Festival and Events Plan and the two costed Implementation Plans.  Integration of Te Taki Haruru has been included which Māori Partnerships gave advice and approved. Feedback from these groups have been incorporated into the Plan.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

No conflicts of interest have been identified.

Community Boards

Communities across the city would benefit if the Plan were adopted.

 

 


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Ōtepoti Live Music - Draft Investment Plan for 9 year plan 2025-34

Department: Ara Toi

 

 

 

 

EXECUTIVE SUMMARY

1          This report presents the draft Ōtepoti Live Music Investment Plan to be considered for consultation purposes, as part of the 9 year plan 2025-34..

 

2          The Ōtepoti Live Music Action Plan (Action Plan) was adopted by Council at the Community Services Committee in September 2023.

3          The presentation of an accompanying Investment Plan was originally scheduled for inclusion in the 10 year plan; this was delayed when Council adopted the 9 year plan process.

4          The Action Plan lists 36 specific actions. Twenty-six of these have been incorporated into business as usual and are covered by current budget provisions across multiple council teams.

5          Ten actions require direct council investment and of these, eight need specific actions and decisions by Council before investment options can be fully explored.

RECOMMENDATIONS

That the Council:

a)         Decides on a preferred option for the Ōtepoti Live Music Investment Plan, for consultation purposes, as part of the 9 year plan 2025-34.

BACKGROUND

6          In September 2023, the Community Services Committee moved to adopt the Ōtepoti Live Music Action Plan (Action Plan), as follows:

Moved (Cr Steve Walker/Cr Christine Garey):

“That the Committee:

a)      Adopts the Ōtepoti Live Music Action Plan 2023

b)      Delegates authority to the Chief Executive Officer to incorporate minor editorial amendments

c)      Notes the Ōtepoti Live MAP implementation action plan 2023/2024 (Attachment B)

d)      Notes that next steps include:

i.    design and production of a public facing version of the Ōtepoti Live MAP

ii. a further report seeking direction from Council on the range and scope of the Ōtepoti Live MAP investment options, as part of the 10 year plan 2024-34 considerations.

iii. giving effect to the Ōtepoti Live MAP 2023/2024.”

Division

The Committee voted by division:

For:           Crs Bill Acklin, David Benson-Pope, Christine Garey, Kevin Gilbert, Carmen Houlahan, Marie Laufiso, Cherry Lucas, Mandy Mayhem, Jim O'Malley, Steve Walker, Brent Weatherall, Andrew Whiley and Mayor Jules Radich (13).

Against: Cr Lee Vandervis (1).

Abstained: Nil

The division was declared CARRIED by 13 votes to 1.

Motion carried (CSC/2023/015)

7          The Action Plan provides a framework through which Dunedin City Council (DCC) can support sustainable creative practices and development of artists, audiences, the live music eco-system, and live music infrastructure.

8          The 36 actions presented in the Action Plan were developed in collaboration with the local Dunedin music communities and responds to needs identified by these diverse groups.

9          This report presents the proposed range and scope of the Action Plan resourcing and investment options, as part of the 9 year plan 2025-34 considerations.

DISCUSSION

10        The adoption of the Action Plan provides Council with a plan to support all forms of live music across the city. Implementation of the actions in the plan underscores Council’s commitment to Ōtepoti’s live music communities, to the vision of the Ara Toi Strategy, and to the wellbeing of city residents.

Ōtepoti Live Music Action Plan Investment –Breakdown by Action

 

11        Twenty-six actions have been identified as business as usual, are underway, or have been completed. Examples of implementation of the Action Plan include:

·        the creation of online music-specific resources,

·        updating online guidelines for noise management,

·        providing professional development workshops for young musicians,

·        providing pastoral care and logistical support for music practitioners and organisations

·        profiling and promoting diverse music practitioners, venues, events, and organisation in council media channels,

·        establishing Te Ōtepoti Hou, a weekly online gig guide,

·        partnering with Otago Access Radio to produce a fortnightly arts programme featuring local music,

·        supporting the Dunedin Youth Council’s Soundwave Youth Festival,

·        supporting music practitioners and projects by distributing Arts funding to music projects and organisations in 23/24,

·        supporting music-rich civic and community events, by distributing Events funding to music events and projects in 23/24,

·        reviewing the street performance guidelines as part of the review of the Trading in Public Places bylaw,

·        reviewing the Acoustic Insulation Requirements through 2GP in Variation 3,

·        establishing a Music Advisory Panel.

12        These activities are covered by current 2024/25 budget provisions across the following teams: Creative Partnerships, Community Partnerships, Events, Parks and Recreation Services, Corporate Policy, City Development, and Customer and Regulatory.

13        Ten actions in total require direct council investment and/or a decision to be made by Council.

·        Two actions require new funding.

·        Given current budgetary constraints, four actions could be supported by the future re-allocation of grants funding. Any decisions about potential investment options should be made by Council upon consideration of the completed Grants Review.

·        Four actions need to be considered within a complex range of medium-planning, strategic, and commercial directions. Investment options for these actions will be developed over time.


 

14        Actions requiring new funding are detailed below (Actions 8, 35).


Action 8

Support the increased activation of public spaces and green spaces in the city for musical festivals and live performances.

Investment option

Resource to cover the research and pilot of pre-approved resource consent packages for green spaces in the city (e.g. Logan Park). Implementation likely in years 2-3.

Investment amount

Figure based on $5,000 over 3 years plus a one-off cost of $7,000 for a sound engineer (if required).

 

Total: $4,000 per annum (3-year pilot)

Team/s responsible

Events

Action 35

DCC to provide operational resource, including new staffing, to coordinate and deliver the Live Music Action Plan across the DCC.

Investment option

New staffing to include:

 

ESSENTIAL

Creative Partnerships Project Co-ordinator; extending position from 0.5 FTE. This will provide additional administrative support levels in Community Partnerships.

 

ESSENTIAL

New Creative Advisor position, Music and Performing Arts focus 1 FTE.

Investment amount

p/a

Creative Partnerships Project Coordinator 0.5FTE: $46,571

Creative Advisor 1 FTE: $90,686

 

Total: $137,257 per annum

Team/s responsible

Creative Partnerships

 

15        The budget breakdown over 9 years is as follows:

 

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

Y9

25/26

26/27

27/28

28/29

29/30

30/31

31/32

32/33

33/34

Current budget provision

28,000

28,000

28,000

28,000

28,000

28,000

28,000

28,000

28,000

New funding request

137,257

141,257

141,257

141,257

137,257

137,257

137,257

137,257

137,257

Total ŌLMAP budget

165,257

169,257

169,257

169,257

165,257

165,257

165,257

165,257

165,257

 

16        Actions 3, 18, 23, 34 could be potentially supported through the re-allocation of grants funding. These actions are listed on the following page.

 

17        Final options and levels of financial support will depend on future Council decisions about grants funding. Given this, no final investment options and amounts have been recommended. Examples of possible outcomes are included.

Action 3

Prioritise the support of community music organisations that regularly provide development opportunities – particularly for youth & Māori, Pāsifika musicians.

Potential investment option

Example:

Funding could be ring-fenced to provide secure, multi-year funding agreements to support key music organisations, events, and programmes such as the Dunedin Symphony Orchestra, the Dunedin City Choir, Moana Nui, Otago Polyfest, Amped, Music Heals, the Dunedin Jazz Club.

Potential investment amount

Any funding to be decided upon once Grants Review complete.

Team/s responsible

Creative Partnerships

Events

 

Action 18

Increase the number of free or low-cost, family-friendly, alcohol-free music experiences.

Potential investment option

Example:

Regular resource could be provided as part of overall Events budget to ensure that:

·      music-rich events take place in a range of locations across the city

·      pre-existing civic events include live music elements 

·      all musicians included in civic events are paid fairly

Potential investment amount

Any funding to be decided upon once Grants Review complete.

Team/s responsible

Events

Action 23

Establish a targeted ‘Live Music Venue’ funding pool that can be accessed by venues to help them create a fit-for-purpose and safe live music space.

Potential investment option

Example:

An annual, contestable grant could be established to assist music venues make their spaces fit-for-purpose.

Potential investment amount

Any funding to be decided upon once Grants Review complete.

Team/s responsible

Creative Partnerships

Advisory Services - City Development

Building Services

 

Action 34

Identify existing music spaces and explore options to improve their availability to the community for use as a creative hub.

Potential investment option

Example:

Provide subsidised time slots and technical support so that practitioners have low or no-cost access to rehearsal or teaching spaces that would otherwise be too expensive to hire.

Potential investment amount

Any funding to be decided upon once Grants Review complete.

Team/s responsible

Property Services

Creative Partnerships

 

18        Actions 26, 31, 32, 33 are complex and are medium to long-term in scope. They may involve commercial considerations, competing council priorities, and will require strategic direction and decision-making at Council level.

 

19        Investment plans for these actions will continue to be discussed and developed as part of Council’s Grants review.

Action 31

Consider the creation of one or more city ‘entertainment precincts.’

Investment option

Ongoing - to be considered alongside other planning priorities.

Investment amount

To be developed.

Team/s responsible

City Development.

 

Action 26

Investigate and consider options for a mid-sized music venue that can be accessible to a diverse range (including national and local) of artists, promoters, touring and ticketing companies. Options to be included for consideration in the 9-year plan.

Investment option

Ongoing consideration.

Investment amount

To be developed.

Team/s responsible

Property Services

ELT

Action 32

Explore options for affordable community access to DCC-owned/DVML- managed venues.

Action 33

Explore options for streamlining processes and reducing fees as incentives to encourage the use of DCC-owned/DVML-managed by local and national promoters.

Investment option

Ongoing consideration.

Investment amount

To be developed.

Team/s responsible

ELT

Property Services

Events

OPTIONS

Option One – Council approves the draft Ōtepoti Live Music Investment Plan, for consultation purposes, as part of the 9 year plan 2025-34.

Impact assessment

20        There is no impact on debt and city-wide and DCC emissions.

Debt

·        No debt funding is required for this option.

Rates

·        Rate funding requires an increase of $137,257 in years 1-9 to fund the 1.5 FTE cost for the Project Coordinator and Creative Advisor. Years 2-4 rate funding increases by $4k to $141,257 to fund the 3 year pilot.

Zero carbon

·        This option does not have implications for city or DCC emissions.

21        The adoption of the Ōtepoti Live Music Action Plan in 2023 was welcomed by creative and other communities. This was accompanied by a strong desire to see the Action Plan funded appropriately.

22        This option provides for the immediate implementation of Actions 8 and 25 from the Action Plan.

23        This option recommends that Actions 3, 18, 23, 34 be re-visited upon the completion of the Grants Review.

24        This option acknowledges that Actions 26, 31, 32, 33, require ongoing discussions and decision-making at council level. Staff will continue to develop options for these actions.

Advantages

·        Two actions included in the Ōtepoti Live Music Action Plan are immediately implemented.

·        Staff resourcing is in place to enable sustainable and effective implementation of the Action Plan.

·        Works continues on all actions yet to be implemented.

·        Ōtepoti Dunedin’s music ecosystem receives the support promised by council when it adopted the Action Plan.

·        Council continues to deliver the Ōtepoti Live Music Action Plan and to meet community expectations.

Disadvantages

·        There will be implications for debt and rates as set out above.

Option Two – Status Quo

Impact assessment

25        There is no impact on debt, rates, and city-wide and DCC emissions.

Debt

·        No debt funding is required for this option.

Rates

·        There are no impacts on rates.

Zero carbon

·        This option does not have implications for city or DCC emissions.

Advantages

·        There is no impact on debt or increase in rates.

·        Action Plan operations that have been identified as business as usual and are underway will continue to progress.

Disadvantages

·        Implementation of the remaining actions of the Ōtepoti Live Music Action Plan will be further delayed.

·        Staff resourcing is insufficient to provide sustainable, efficient implementation of current Action Plan operations. Other than business as usual, Action Plan operations will be scaled back to ensure staff wellbeing and adequate support for other creative communities.

·        Resourcing (including staff resourcing) is insufficient to implement the remaining ten actions.

NEXT STEPS

26        If approved, the Draft Ōtepoti Live Music Investment Plan will be included, for consultation purposes, as part of the 9 year plan 2025-34.

 

Signatories

Author:

Lisa Wilkie - Kaiarahi - Team Leader Creative Partnerships

Authoriser:

Jeanette Wikaira - General Manager Arts, Culture and Recreation

Attachments

There are no attachments for this report.


 

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

Future Development Strategy

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

Other policies and projects directly relevant to this Investment Plan include:

Te Taki Haruru

Ōtepoti Live Music Action Plan

Festivals and Events Management Plan

Reserves Management General Plans

Grants Review (underway)

Māori Impact Statement

The Ōtepoti Live Music Action Plan acknowledges and seeks to support the long-lived and continuing traditions of mana whenua musical practices in this place. Investment in the Action Plan ensures that Māori creative, cultural, spiritual, and professional music practices can grow and develop sustainably within a te ao Māori framework.

 

The recently established Music Advisory Panel includes a position reserved for a mana whenua representative and specific actions are designed to address inequitable access to music resources experienced by Māori music communities.

Sustainability

The Ōtepoti Live Music Action Plan provides support across the music ecosystem in order to foster meaningful development that can sustain music careers, industries, and creative practices.

 

Initial investment is targeted at practitioners and audiences; medium- and long-term investment will be focussed on the infrastructure needed to support thriving and sustainable live music in Ōtepoti Dunedin.

Zero carbon

This report does not have implications for city or DCC emissions.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides the draft Ōtepoti Live Music Investment Plan to include in the 9 year plan.

Financial considerations

The cost of Option One is $141, 257 per annum; see paragraph 14 for investment details.

Significance

The draft Investment Plan is included in the development of the 9 year plan 2025-34, which is consulted on using the special consultative procedure.

Engagement – external

There has been no external engagement in the development of this Investment Plan

Engagement - internal

There has been engagement with staff across a range of teams in the development of this investment Plan.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards will be consulted on the 9 year plan 2025-34.

 

 


Council

28 January 2025

 

 

Performing Arts Venue Proposal - 9 year plan 2025-34

Department: Executive Leadership Team

 

 

 

 

EXECUTIVE SUMMARY

1          The purpose of this report is to provide Council with a performing arts venue proposal for consideration for the 9 year plan 2025-34.

2          Staff have worked with the Performing Arts Community to progress venue concepts including venue owners and practitioners from the Playhouse Theatre, the Mayfair Theatre, the New Athenaeum, Stage South and the Regent. For the purposes of this report, this group is referred to as the Performing Arts Group (the Group).

3          The Group has come together from within the city’s performing arts sector to address the need for a performing arts vision as a central focus and to put forward the development of a performing arts proposal that would help to progress this vision.

4          This report presents a community led Performing Arts Venue proposal from the Performing Arts Community Group (the Group).

5          The proposal presented draws on the work of the Dunedin Theatre Network (DTN) and Stage South and presents an integrated concept of 3 venue developments within the one proposal. The proposal includes:

a)         The Playhouse Theatre

b)        The New Athenaeum

c)         A new Performing Arts Centre

6          Each of the proposed venues meets the requirements of different parts of Dunedin’s performing arts sector. As an integrated proposal, the 3 venues present an intergenerational approach from children’s theatre to a central city multi-use creative hub and a future focussed new-build performing arts centre.

7          There are a range of details still to be addressed in putting forth this proposal. These includes key details and legal advice related to ownership and partnership structures, cornerstone funding and operating models.

8          Although some of this work is being progressed, there has been insufficient time between the last report to Council on 10 December 2024 and this current report, to provide a full appraisal of the key details required.

9          If directed by Council, staff will work to bring a more detailed report to Council for consideration.

RECOMMENDATIONS

That the Council:

a)         Considers how it wishes to proceed with the Performing Arts group proposal.

b)        Notes that the current proposal seeks cornerstone funding from Council for three projects and this funding is likely to be an operating expense, rather than a capital expense.

 

BACKGROUND

Performing Arts Venue Context

10        The performing arts is a key part of the city’s arts and culture ecology and supports delivery of the Ara Toi Social Wellbeing and Economic Development strategies, Te Taki Haruru – The Māori Strategic Framework and the Ōtepoti Live Music Action Plan. Performing arts venue development would also help deliver some of the objectives of the Spatial Plan and the Future Development Strategy.

11        Following the closure of the Fortune Theatre in May 2018, the DCC and Creative New Zealand (CNZ) jointly commissioned a study into the future provision for performing arts in the city.  This study was delivered by theatre consultants Charcoalblue in three phases between 2018 and 2021.

12        Phase One focused on stakeholder engagement. The initial consultation with the performing arts community identified a broad, consensus vision. Sector engagement and initial analysis identified facilities needed to fill gaps in the provision of performing arts in the city. The first phase of this work was completed and endorsed by Council in April 2019.

13        Phase two focussed on identifying viable options for flexible, mid-sized sites. Options were presented to Council for delivering core facilities that included a flexible mid-sized theatre (350–450 seats), with front and back of house spaces and a food and beverage facility on one site, recognising that other facilities could be developed elsewhere as spaces and resources became available.

14        Initially four sites were shortlisted for consideration and included the below options:

·        65 Crawford Street (Sammy’s) – use the existing footprint to build a stand-alone theatre.

·        The Athenaeum – partnership development with Lawrie Forbes of Zeal Land Ltd.

·        231 Stuart Street (Formally the Fortune Theatre) – redevelop the building.

·        Mayfair Theatre – redevelop the existing theatre, noting it is currently owned by a Trust.

15        At a Council meeting held in December 2020, Council resolved the following:

“Moved (Cr David Benson-Pope/Cr Steve Walker):

That the Council:

a)     Directs staff to continue work on development of two options; the Athenaeum (as the preferred) and the Mayfair as a potential alternative.

b)     Includes $17m in the draft capital budgets for the purposes of development of the draft 10 year plan.

c)      Notes that the operating costs of $4.5m will be included in the draft operating budgets for the purposes of developing the draft 10 year plan.

d)     Notes that decisions made on the operating and capital budget timing will be presented to the January 2021 meeting for consideration as part of the draft 10 year plan.

e)     Directs staff to negotiate agreements with Mr Forbes and the Mayfair Trust to enable consultation on the two options as part of the 10 year plan process.

Cr Lee Vandervis left the meeting at 11:00 a.m.

Division

The Council voted by division:

For:                 Crs Sophie Barker, David Benson-Pope, Rachel Elder, Christine Garey, Doug Hall, Carmen Houlahan, Marie Laufiso, Jim O'Malley, Jules Radich, Chris Staynes, Steve Walker, Andrew Whiley and Mayor Aaron Hawkins (13)

Against:        Cr Mike Lord (1)

Abstained:   Nil

The division was declared CARRIED by 13 votes to 1

Motion carried (CNL/2020/117)”

16        Phase Three included further business modelling and analysis of the suitability of two venues, the Athenaeum (as the preferred) and the Mayfair (as a potential alternative).

17        In March 2021 as part of the 2021-2031 10 Year Plan consultation process, the community was asked if it supported the development of a mid-sized theatre. The community was also presented with two options; a preferred option of the Athenaeum, and a second option of the Mayfair Theatre.

18        Of the 1,878 the submissions expressing an opinion, 1,052 (56%) were in favour of the DCC developing a mid-sized theatre, with 826 (44%) not in favour. Of the two options, 759 (53%) supported the Athenaeum as the preferred mid-sized theatre option. 502 submissions (40%) were in favour of the Mayfair Theatre option.

19        A report was presented to Council in May 2021 that summarised the community feedback received during the 10 Year Plan consultation relating to a theatre venue. At this meeting Council resolved the following:

Moved (Mayor Aaron Hawkins/Cr Steve Walker):

That the Council:

Decides that further engagement be undertaken with the performing arts community on options for the draft 2022/23 Annual Plan meeting.

Division

The Council voted by division:

 

For:                 Crs Sophie Barker, David Benson-Pope, Rachel Elder, Christine Garey, Doug Hall, Carmen Houlahan, Marie Laufiso, Mike Lord, Jim O'Malley, Jules Radich, Chris Staynes, Steve Walker, Andrew Whiley and Mayor Aaron Hawkins (14).

Against:         Cr Lee Vandervis (1).

Abstained:   Nil

 

The division was declared CARRIED by 14 votes to 1

 

Motion carried (CNL/2021/001)

 

Moved (Mayor Aaron Hawkins/Cr Steve Walker):

That the Council:

b)        Decides that the $17.1 million in the 10 year plan budget be retained for the future development of a mid-sized theatre.

 

Division

The Council voted by division:

 

For:                  Crs David Benson-Pope, Rachel Elder, Christine Garey, Doug Hall, Carmen Houlahan, Marie Laufiso, Chris Staynes, Steve Walker and Mayor Aaron Hawkins (9).

Against:          Crs Sophie Barker, Mike Lord, Jim O'Malley, Jules Radich, Lee Vandervis and Andrew Whiley (6).

Abstained:     Nil

 

The division was declared CARRIED by 9 votes to 6

 

Motion carried (CNL/2021/002)

 

Engagement with the Performing Arts Community

 

20        Since 2021, engagement work has continued with the performing arts community regarding options for a mid-sized theatre.

21        Following the 2021 Council decision to retain the $17m, staff were directed to undertake further engagement. The establishment of a Round-Table Performing Arts group was proposed to bring the sector together and continue discussions on the development of a performing arts venue. This approach was successfully undertaken with the Music community to work together to develop the Live Music Action Plan.

22        However, on the back of the extensive CharcoalBlue engagement, the performing arts community determined their desire to focus on leading their own discussions from within.

23        Staff continued to meet with individual performing arts stakeholder groups including the Playhouse, the Mayfair, the Atheneum, Stage South, Regent Theatre, PolyFest, Amateur Theatre Production and Dunedin Fringe. Staff have also continued to meet with performing arts producers and practitioners.

24        In 2022, the owners of the Playhouse Theatre, the Athenaeum building, and the Mayfair Theatre came together to form DTN and develop a ‘networked approach’ for Dunedin’s theatre infrastructure. DTN developed a staged approach to explore the possibility of partnering with the DCC and other funders to refurbish the three venues as a network. As outlined below and directed by Council resolutions, staff worked alongside DTN on their networked theatre approach.

The Dunedin Theatre Network – A community led proposal 2022-2024

 

25        DTN’s Stage One proposal was submitted to Council’s 2022-2023 Annual Plan hearings in May 2022. Council resolved that staff assist DTN to explore funding pathways to support the delivery of costed concept designs for the refurbishment of the Playhouse, Athenaeum and Mayfair Theatres.

26        DTN’s Stage Two proposal was submitted to Council’s 2023-2024 Annual Plan hearings in May 2023. DTN proposed that DCC be a cornerstone investor, to refurbish three theatre venues over 6 – 8 years. At this meeting Council approved funding of $100,000 and an MoU be developed between the DCC and the DTN.

27        DTN’s Stage Three report was presented to Council on December 10, 2024. This was DTN’s final report and was a comprehensive summary produced by Feldspar Associates that outlined in detail the concept designs and cost estimates for each of the three theatres, highlighting remedial works and refurbishment planning that had already been undertaken. The report provided a future focus of what each of the refurbished venues might look like and the needs of the performing arts community each venue would potentially support.

Focussed Stakeholder Engagement

28        Council decisions to support the DTN did not preclude other performing arts groups from developing proposals and meeting with staff. Staff continued to engage with key performing arts community stakeholders about their proposals and ideas for Dunedin’s performing arts venue requirements.

29        Over 2023-2024 staff had ongoing meetings with key stakeholders who have formed into an informal community collective, the Performing Arts Group (the Group). The Group includes venue owners and theatre practitioners involved particularly with Playhouse Theatre, Mayfair Theatre, the Atheneum, Stage South and the Regent Theatre.

30        Individually and collectively the Group have worked together to develop a community led vision for the future of Dunedin’s performing arts venue requirements, now and into the future. The Group has met regularly both with staff and amongst themselves as a collective to begin to develop a proposal to support the future vitality of performing arts in Ōtepoti Dunedin.

31        Over time staff and the Group have drawn on several key research documents to help focus and guide discussions and deepen our thinking with research based evidence. These are outlined in the footnote below.[1]

DISCUSSION

State of Performing Arts in Dunedin – Strategic Context

 

32        Cultural infrastructure plays a vital role in local and regional development, serving as a cornerstone for cultural vibrancy, economic growth, and social prosperity and cohesion. Around the world, investments in cultural facilities, creative spaces, and heritage sites have been recognised as key drivers of vibrant communities, attracting talent, tourism, and investment.

33        While Dunedin benefits from a traditionally strong foundation as a city supportive of the cultural arts, live-music and unique festivals and events, there are challenges with Dunedin’s cultural infrastructure.  Cultural infrastructure, whether it be libraries, museums, or performing arts venues are vital contributors to the cultural ecosystem of every city and town. The cultural infrastructure for the performing arts sector in Dunedin is now at a critical juncture.

34        Challenges that were identified in earlier discussions starting from 2018, in relation to performing arts venues and the impact on the performing arts community remain present now and have become more pronounced. This is particularly so for artists and practitioners and producers of professional theatre and live music. These issues have been well canvassed in previous reports to Council.

35        Over the last year, the process of meeting regularly with the Group to discuss the needs of the community has produced a sharper focus on what the challenges are and what solutions are required. At a high level key challenges are identified as:

·        Compromised facilities threatening the sustainability of the performing arts community impacting city vibrancy and the ability to attract performances to the city.

·        Siloed and disparate performing arts communities are operating in a scarcity environment that creates competition for space, resources and funding which threatens sustainability.

·        Insufficient and compromised creative infrastructure.

·        Without a central focal point or a performing arts vision for the city there is very little to draw the sector together.

36        The Group has come together from within the city’s performing arts sector to begin to address the need for a performing arts vision as a central focus and to develop a performing arts proposal that helps to progress this vision.

The Performing Arts Group Proposal

37        The Group has developed 3 key foundational principles that underpin the proposal.

a)         Strengthening the performing arts community, taking a unified community led approach. One of the key points that the performing arts community has consistently heard from Council, is that the community should come together with a unified performing arts proposal. The work of DTN over previous years in developing their vision for a networked approach has been a significant point of unification for the performing arts community as a whole. Building on DTN’s collaborative approach, the Group are proposing a unified community led approach in the proposal being presented.

b)        Working in partnership, taking a collaborative development approach. The Group understands that no one organisation can do this work alone and that it requires a collaborative partnership approach between the community, Council and other key stakeholders and funders. The Group is also committed to working in collaboration to develop a clear vision and strategy that future proofs performing arts in the city.

c)         Investing in our creative infrastructure and innovating for the future, taking an intergenerational approach. An essential component of this proposal is that it provides for an intergenerational approach to developing the city’s performing arts infrastructure.

38        The Group’s proposal draws on the work of DTN and Stage South and presents 3 venue developments within the one proposal. Each of the developments meets the requirements of different parts of the performing arts sector. As an integrated proposal, the three venues present an intergenerational approach from children’s theatre to a central city multi-use creative hub and a future focussed new-build performing arts centre.

39        The performing arts proposal is outlined below.

a)         The Playhouse Theatre: refurbishment of the existing Albany St building as outlined in the Dunedin Theatre Network’s Stage 3 Report.

·    Vision: A home for children’s theatre. Character theatre with a focus on children and youth, available to a range of smaller scale and community hires.

·    Objective: To restore the Playhouse Theatre, retaining the character auditorium while modernising the facility and vastly improving accessibility and the experience and comfort of audiences, performers, and crew.

·    Performance spaces: 120-seat character auditorium.

·    Social spaces: large lounge above the auditorium.

·    Arts needs assessment: The Playhouse Theatre refurbishment meets the needs of children’s theatre in the city and is an investment in developing youth theatre practitioners and growing the future performing arts eco-system. Supports the sustainability of the performing arts community.

·    Price Tag: $5.79m

·    Cornerstone funding: $3.35m.

·    Costed concept designs for The Playhouse Theatre are attached as Appendix A.

 

b)        The New Athenaeum: development of a central city performance venue as outlined in the Dunedin Theatre Network’s Stage 3 Report.

·    Vision:  A home for a central city creative hub with literary roots. Dual centrepieces of a large live music venue and a black box theatre.

·    Objective: To create a series of vibrant, welcoming, multi-use spaces in the very heart of Dunedin city.

·    Performance spaces: 120-seat black box + 600-pax live music/performance space.

·    Social spaces: Theatre foyer, Library space, café/bar/reception area with commercial kitchen, coffee shop.

·    Other spaces: Recording studio, offices

·    Arts needs assessment: The New Athenaeum development meets the needs of multiple segments of the performing arts community including inner city live music, fringe art performances and the literary arts with a redeveloped space for the New Athenaeum Library and a home for the Dunedin UNESCO City of Literature. Will create vibrancy in the central city, attract out of town performances and support hospitality and the visitor economy. Supports the sustainability of the performing arts community.

·    Price Tag: $15.48m (start 2026)

·    Cornerstone funding: $4.25m

·    Costed concept designs for the New Athenaeum are attached as Appendix A.

 

c)         A Performing Arts Centre: new build of a fit for purpose venue as per the Stage South Report.

·    Vision: A home for the future of performing arts in Ōtepoti Dunedin.

·    Objective: To be a fit for purpose contemporary facility, with multi-use spaces to practice, produce, experience, participate and be inspired by the performing arts.

·    Arts needs assessment: A new Performing Arts Centre meets the needs of multiple segments of the performing arts community and will attract both young and mature audiences. A new centre will create vibrancy and foster arts innovation as well as attract out of town performances, support hospitality and the visitor economy. Supports the sustainability of the performing arts community.

·    Price Tag: $28.02m (estimated costs)

·    Estimated cornerstone funding: $9.5m.

·    Estimated concept designs for a Performing Arts Centre new build are attached as Appendix B and C.

 

40        Each of venue options require cornerstone funding and the proposal from the Group is seeking that from Council. The total amount of cornerstone funding is $17.1m.

41        The estimated total cost of all three performing arts venues is $49.47m.

42        The detailed and estimated costing information for each of the performing arts venue projects have been previously provided to Council and are provided again in the attached appendices. However, the combination of these 3 venues as a proposal for Council consideration is a new idea, not previously considered formally by Council.

43        In addition, Stage South who have previously presented their ideas at Council Forum, have been actively seeking possible land opportunities for the new build. This work is continuing.

44        Other ideas were robustly discussed at length by the Group to deliver a consensus. As this was a community led proposal, the final decision was made by the Group and the current proposal as presented in this report, was provided in a meeting with DCC staff.

45        There are a range of details still to be addressed in putting forth this proposal. This includes key details and legal advice related to ownership and partnership structures, cornerstone funding and operating models as well as mapping out a staged approach to development.

46        Although some of this work is being progressed, there has been insufficient time between the last report to Council in early December 2024 and this current report to provide a full appraisal of the key details required.

OPTIONS

47        The Performing Arts Group has done significant work to progress their proposals, but as currently presented, the proposal would require cornerstone funding which would be rates funded as it is an operating expense. 

48        Previously there had been $17m of capex in the budget for performing arts.  The draft capital budgets currently do not include this amount.  The current proposal from the Performing Arts Group would not have been able to access this funding unless there were different ownership models in place. 

49        The proposals, on their face, are positive initiatives, driven by the performing arts sector, and all aimed to provide a vibrant performance scene for the city.  There has been insufficient time for staff to fully explore any ownership models that may not impact rates to the extent that the current proposals do. 

50        The challenge is to determine what is the best role for the Council to play in supporting this initiative.  Councillors may consider if they wish to consult the community on one or all of the proposals presented by the group, but as currently presented, the impact on rates would range from $3.35m to $9.95m.  The cumulative rates impact of the three proposals would be $17.1m.  Given the timing of the receipt of this information, staff are not able to provide advice on what the best option may be. 

51        Council could direct staff to continue to work with the group, to progress key details of the proposal, seek legal advice on ownership and partnership structures, cornerstone funding, and operating models.  Following that work, staff would present a further report to Council for consideration.

NEXT STEPS

52        The next steps will depend on the direction provided by Council. 

Signatories

Author:

Jeanette Wikaira - General Manager Arts, Culture and Recreation

Authoriser:

Sandy Graham - Chief Executive Officer

Attachments

 

Title

Page

a

The Playhouse Theatre and The New Athenaeum Theatre - Costed Design Concepts December 2024

137

b

Otepoti Perfoming Arts Centre  - Concept Design Estimate June 2024

165

c

Otepoti Performing Arts Centre - Indicative Layout

201

 


 

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 cultural, social and economic 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

Future Development Strategy

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

The performing arts is a key part of the city’s arts and culture ecology and supports delivery of the Ara Toi Social Wellbeing and Economic Development strategies, Te Taki Haruru – The Māori Strategic Framework and the Ōtepoti Live Music Action Plan. The development of a new performing arts venue would also help deliver some of the objectives of the Spatial Plan and the Future Development Strategy.

Māori Impact Statement

Mana whenua and mātāwaka are partners in Te Taki Haruru, the DCC’s Māori Strategic Framework, which includes supporting the cultural, social and economic wellbeing of Māori in Ōtepoti Dunedin.

Mana whenua have been included throughout the life cycle of the Performing Arts Venue work.  Mana whenua were represented on the original steering group for the feasibility study. Consultation was also undertaken with Māori practitioners in relation to performing arts venue options.

Sustainability

Less theatre and performing arts activity could affect the sustainability of the city’s arts and culture ecology (including amateur and professional practitioners, educators and career pathways) and short and long term access of Dunedin’s communities and audience to theatre experiences in the city.

Zero carbon

This is not applicable to this report.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report is presents performing arts venue options for consideration in the 9 year plan.

Financial considerations

Financial considerations are discussed in this report.

Significance

The report is considered to be of low significance in terms of the Council’s Significance and Engagement Policy.

Engagement – external

External engagement about the performing arts broader project has included working with performing arts venues, organisations, and individual practitioners, Creative New Zealand and mana whenua. For this report detailed discussions have been had with representatives from the Playhouse Theatre, New Athenaeum the Mayfair Theatre, Stage South and the Regent Theatre.

Engagement - internal

Engagement has taken place with Ara Toi, Property Services, Finance, Communications and Marketing, Corporate Policy, City Development and Economic Development.

Risks: Legal / Health and Safety etc.

There are no known risks identified.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

The development of a performing arts venue for Dunedin City is of interest to the broader Dunedin community and will be of interest to all Community Boards.

 

 


Council

28 January 2025

 





























Council

28 January 2025

 





































Council

28 January 2025

 







Council

28 January 2025

 

 

Potential Entry Charges at Cultural Institutions

Department: Arts and Culture

 

 

 

 

EXECUTIVE SUMMARY

1          This report investigates the potential impact of introducing entry charges at Toitū Otago Settlers Museum (Toitū) and Dunedin Public Art Gallery (DPAG). 

2          The analysis includes museum visitation and visitor charging, entry fee impacts, benchmarking data from museums[2] in New Zealand and internationally, income forecasts, implementation costs, and additional revenue generating opportunities at Toitū and DPAG.

3          In the process of completing this report, staff also considered the viability of an entry fee for international visitors only, utilising the same model that Te Papa has recently introduced. This has been included as an option for Council consideration.

4          Benchmarking data reveals that most museums in New Zealand are free, though many offer optional paid experiences.  Two museums in New Zealand charge entry fees for international visitors, Tamaki Paenga Hira Auckland War Memorial Museum and Te Papa Tongarewa, Museum of New Zealand. Dunedin museums are among the most visited in the country.

5          Introducing entry fees for international visitors only at Toitū and DPAG is projected to generate an estimated annual operating surplus of $75,000 from the second year onwards.

6          Introducing entry fees for all out of town visitors at Toitū and DPAG is projected to generate an estimated annual operating surplus of $135,000 from the second year onwards. 

7          A proposed new ticketed attraction at Toitū is estimated to generate an additional $200,000 annually, based on typical visitation levels.

RECOMMENDATIONS

That the Council:

a)         Decides to implement an entry charge option at Toitū and DPAG or maintain free entry.

 

BACKGROUND

8          At its meeting on 28 May 2024, the Dunedin City Council resolved:

That the Council

 

a)         Request a report for consideration in time for the 9-year long term plan, to consider entry charges at two Dunedin City Council owned venues, being Toitū and Dunedin Public Art Gallery, for non-Dunedin residents aged 12-years and older.

b)         Request that the report includes:

i)         Benchmarking against other cities both in New Zealand and overseas;

ii)        Forecast of expected income and costs to implement a proposed visitor charge;

iii)       Identification of additional revenue opportunities at Toitū and Dunedin Public Art Gallery

Division

The Council voted by division

 

For:                 Crs Bill Acklin, Sophie Barker, Christine Garey, Kevin Gilbert, Cherry Lucas, Steve Walker, Andrew Whiley and Mayor Jules Radich (8).

Against:         Crs David Benson-Pope, Carmen Houlahan, Marie Laufiso, Mandy Mayhem, Jim O'Malley, Lee Vandervis and Brent Weatherall (7).

 

The division was declared CARRIED by 8 votes to 7

 

Motion carried (CNL/2024/001)

 

9          The DPAG established in 1884, is New Zealand’s oldest art gallery, housing one of the finest art collections in the southern hemisphere. In 1996 the DPAG relocated to the Octagon, initially charging entry fees to non-residents. These fees were removed in 2001.  In normal trading conditions, the DPAG typically attracts over 200,000 visitors p.a. 

10        The Otago Settlers Museum was founded in 1898. Its vision is to collect and display taoka that holds the collective experience of those who have lived in Ōtepoti Dunedin and share their stories.  Facing financial difficulties in 1979, the Museum introduced an entry fee which was removed in 2006 to improve visitation. Toitū, as it is now known, has undergone an extensive redevelopment and regularly attracts over 300,000 visitors p.a.

DISCUSSION

11        The museums and galleries sector in Aotearoa New Zealand provides widespread contribution towards economic, cultural, social, and environmental wellbeing in New Zealand, through their services and activities.

12        The Museums Aotearoa and BERL (2022) report The Value of Museums and Galleries in Aoteaora, estimated the New Zealand museums and galleries sector maintains upwards of $5.6 billion worth of cultural assets, received 17.5 million visits, employed 3,365 full-time equivalent (FTE) jobs and generated $272 million in GDP. Demonstrating the significance of museums and galleries for the nation and the importance of protecting and maintaining the sector into the future.

13        In addition to being valuable economic entities and visitor attractions, museums and galleries provide vital connections to our history as a nation offering a sense of place and identity for all. They also act as cultural and creative hubs, offer Māori and Pacific-focused programmes, curated talks, tours, film evenings, cafes, retail spaces, function areas, archives, conservation, children’s programmes, concerts and more. These activities are integral to maintaining social cohesion and wellbeing in our communities.

14        In 2014 Council considered, but did not adopt, a similar proposal to this report, to implement entry charges for non-residents at Toitū and DPAG. Independent market research commissioned as part of the consideration in 2014 has been drawn on in this report. The commissioned research, although 10 years old, remains a relevant piece of research for the Dunedin context. Dunedin Cultural Institutions Visitor charging project: Research Results (2014). Due to budget constraints and timing, a comparable piece of research was not able to be commissioned for this report.

15        In addition, this report draws on several key local and international research documents from the museum sector outlined in the below footnote. [3]

MUSEUM VISITATION AND VISITOR CHARGING

16        Internationally, the UK Association of Independent Museums (AIM) report, Admissions Pricing Policy in Museums, and its Impact (2023) is amongst the most recent international studies into charging entry at museums and provides useful insights into the impact of charging admission fees for smaller UK museums to consider.

17        Among its findings, the AIM report suggests that entry charges at museums are a complex issue, one size does not fit all, and the success or failure of charging admission is influenced by various factors such as the museum's location as well as the demographics and attitudes of its visitors. It recommends that consideration of local context is a key factor in deciding whether and how much to charge for museum admissions.

18        National evidence shows that visitors rarely visit just one museum or gallery, instead they visit multiple institutions per trip. The Museum’s Aotearoa 2023 National Visitor Survey (NVS) estimates that on average, each visitor to a city or region visited two museums or galleries, with 23 percent visiting three or more.

19        Therefore, it is important to view an institution’s impact collectively at the city or regional level. Museums and galleries are connected to each other as well as the arts and heritage communities in their local areas. These clusters are important to maintain because visitors to a city or region are often drawn by a collective offering of activities and attractions. Additionally, when visitors are drawn to an area due to a prominent museum, exhibition or event, they will usually make the most of the other offerings nearby.

20        By examining trends in both international and national museum contexts, there are some predictable outcomes for visitation and revenue if Toitū and DPAG introduce entry charges particularly for non-Dunedin residents.

21        Entry charges at Toitū and DPAG are likely to negatively affect the visitation and demographic profile of audiences.  Admission fees may create barriers for those on lower incomes making museums less accessible to a broader audience. 

22        When previously free museums introduce admission charges, it is common for visitation to fall dramatically.  Most recently, this happened at Auckland Art Gallery following the introduction of an admission fee for international visitors in 2019.  Visitor numbers fell to 415,000, down from 534,000 in 2018.  It is worth noting only 44,000 of this 119,000 drop were international visitors, suggesting that local visitors were also deterred.

23        Based on international and national research, total visitation at Toitū and DPAG is estimated to drop. Mitigations can be put into place, such as clear and ongoing communications about entry fees and a clear and simple museum arrival process that does not deter visitors.  In the 2014 survey, several Dunedin residents reported feeling uncomfortable about the prospect of being challenged to prove their residency and felt this would deter them from visiting.  The example at Auckland Art Gallery in 2019 supports this concern.

24        Entry charges at Toitū and DPAG will increase revenue. This economic gain can be used for capital and operational improvements.  Paying visitors are likely to have higher expectations so an increased revenue will be useful for covering the costs of improving the quality of displays, the expense of higher profile touring exhibitions and providing more public programmes.

TE PAPA MODEL – CHARGING INTERNATIONAL VISITORS ONLY

25        In August 2024, Te Papa announced a new $35 admission charge for international visitors only aged 16 years and older and this was launched in September 2024. Entry to the museum remains free for New Zealanders living in New Zealand and those based overseas. The decision to charge an entry fee had been benchmarked against tourism experiences in New Zealand and around the world, with an expectation that most international visitors would be happy to pay. Te Papa’s approach was successfully implemented with a simple fee structure, a clear message to the public and a visitor host process that was clearly articulated to the public.

26        After discussion with Councillor Whiley about this report, it was agreed that the Te Papa example provides the best approach for the Dunedin context. Staff have therefore completed this report including the option for introducing an entry for international visitors only at DPAG and Toitū.

BENCHMARKING

27        Benchmarking shows in New Zealand and Australia that it is less common for publicly funded museums to charge a general entry admission; however, many museums include optional paid experiences within their programmes.

New Zealand Museum Context:

28        The following table provides charging and visitation benchmarking data for comparable, publicly funded museum facilities in New Zealand in 2022-2023. This data indicates that museums in New Zealand are more likely to charge entry fees than art galleries, and these charges are more common in Auckland. 

29        The below comparative data does not include levels of operational funding which is not consistent across these museums.

2022-23

Visitation

Total Civic Population

Visitation as % of population

Entry charges

Adults

Children

Family

Locals Free?

 

Dunedin

 

 

Dunedin

 

Tūhura Otago Museum

292,824

134,600

218%

No*

-

-

-

-

 

Toitū Otago Settlers Museum

210,135

134,600

156%

No

-

-

-

-

 

Dunedin Public Art Gallery

188,943

134,600

140%

No

-

-

-

-

 

Auckland

 

 

 

Auckland

Tāmaki Paenga Hira Auckland War Memorial Museum

889,808

1,739,300

51%

Yes

$32.00

$16.00

$86.00

Yes

 

Auckland Maritime Museum

c.120,000

1739,300

7%

Yes

$24.00

$12.00

$58.00

Yes

 

MOTAT

232,144

1,739,300

13%

Yes

$19.00

$10.00

$45.00

No

 

Auckland Art Gallery Toi o Tāmaki

480,000

1,739,300

27%

No *

-

-

-

Yes

 

Hamilton

 

Waikato Museum

119,314

185,300

64%

No*

-

-

-

-

 

New Plymouth

 

Govett Brewster Art Gallery & Lye Centre

84,500

88,900

95%

Yes

$15.00

Free

NA

Yes

 

Palmerston North

 

Te Manawa 

121,914

91,800

133%

No*

-

-

-

-

 

Wellington

 

Te Papa Tongarewa

1,107,768

216,200

513%

Yes

$35.00

Free

-

Yes

 

Wellington Museum

127,240

216,200

59%

No

-

-

-

-

 

City Gallery Wellington

113,911

216,200

53%

No*

-

-

-

-

 

Dowse Art Museum (Hutt City)

142,823

114,000

125%

No

-

-

-

-

 

Nelson

 

Nelson Provincial Museum

62,315

55,600

112%

Yes

$7.00

$3.00

 

Yes

 

Suter Art Gallery 

105,441

55,600

190%

No

-

-

-

-

 

Christchurch

 

Canterbury Museum Pop-up and Ravenscar House (Main site closed for redevelopment).

312,908

396,200

78%

Yes

Ravenscar

Quake City

$25.00

$5.00

-

No

 

Christchurch Art Gallery Te Puna o Waiwhetū

314,945

396,200

80%

No*

-

-

-

-

 

*Denotes no general entry charge, but charges may apply for special exhibitions or attractions.

 

International visitor entry fee

 

Non-resident visitor entry fee

 

 

Australian Museum Context:

30        Australia is the international market most comparable to New Zealand, with museums that share similar histories, collecting interests, operational strategies, and visitor experiences. While Australian museums are more likely to offer free admission than charge a general entry fee, most still feature special paid exhibitions or attractions. However, Australia's different funding environment, which includes a mix of local, federal, and national government funding for some museums, may influence their ability to offer free entry without compromising financial stability.

2022-23

Visitation

Total Civic Population

Visitation as % of population

Entry charges

Adults

Children

Family

Locals Free?

Australia

Art Gallery of New South Wales (Sydney)

1,926,679

5.1m

38%

No*

-

-

-

-

Museum of Contemporary Art (Sydney)

1,830,249

5.1m

36%

No*

-

-

-

-

Australian Museum (Sydney) 

950,000

5.1m

19%

No*

-

-

-

-

Queensland Art Gallery | Gallery of Modern Art (Brisbane)

1,186,867

2.5m

47%

No *

-

-

-

-

Queensland Museum (Brisbane)

2,300,185

2.5m

92%

No*

-

-

-

-

Art Gallery of South Australia (Adelaide)

604,385

1.5m

40%

No*

-

-

-

-

South Australia Museum (Adelaide)

786,064

1.5m

52%

No*

-

-

-

-

National Gallery of Victoria (Melbourne)

2,461,376

5.2m

47%

No*

-

-

-

-

Melbourne Museum

1,375,395

5.2m

26%

Yes

$15

-

-

-

Ballarat Art Gallery

113,734

102,000

110%

No

-

-

-

-

Australian Maritime Museum (Sydney)

2,096,031

5.1m

41%

Yes

$20

$15

$70

No

National Gallery of Australia (Canberra)

517,825

480,000

108%

No*

-

-

-

-

National Museum of Australia (Canberra)

602,929

480,000

126%

No*

-

-

-

-

*Denotes no general entry charge, but charges may apply for special exhibitions or attractions.

 

ENTRY FEE DUNEDIN IMPACTS FOR CONSIDERATION

31        Local and regional accessibility: Research indicates that limited access to cultural institutions such as libraries and museums can have a profound negative impact on communities. These institutions are critical for providing educational opportunities, fostering social cohesion, and preserving cultural heritage. Studies have shown that cultural engagement supports cognitive development, improves literacy rates, and enhances overall well-being. When access to these resources is restricted, it exacerbates existing inequalities, depriving communities of the benefits of cultural participation and lifelong learning opportunities. Ensuring equitable access to cultural institutions is essential for fostering inclusive societies and promoting social justice. Specifically, both Toitū and DPAG have important collections of local and regional specific histories and families that could potentially limit access if non-resident entry fees were introduced. If Council were to introduce entry fees for international visitors only, these impacts would not require consideration.

32        Kai Tahu accessibility: Both Toitū and DPAG have collections of Kāi Tahu taoka (treasures) as well as exhibition and public programming which relate to the significance of Kāi Tahu cultural heritage. Colonisation and the collecting culture of museums, means that much of Kai Tahu’s important taoka (treasures) are held within cultural institutions. Entry fees for iwi Māori to visit and connect with their cultural heritage which has spiritual and cultural significance will restrict access to mana whenua audiences who are not Dunedin residents. If Council were to introduce entry fees for international visitors only, these impacts would not require consideration.

33        Otago Museum: If Otago Museum remains free, this may further draw visitation away from Toitū and DPAG, reducing revenue estimates. This would likely be the case if Council were to introduce entry fees for non-residents or for only international visitors.

34        Stakeholder concerns: The Otago Settlers Association and Dunedin Art Gallery Society have expressed concerns about introducing non-resident entry fees at Toitū and DPAG. They worry it could harm Dunedin's reputation as a centre for arts and culture, reduce future donations and bequests, and discourage Dunedin residents from bringing out-of-town family and guests to visit. If Council were to introduce entry fees for international visitors only, these impacts would not require consideration.

ENTRY FEE FINANCIAL CONSIDERATIONS

Financial Forecast for Non-Dunedin Resident Entry Fee Model

35        Based on 2014 data and current visitation figures, an estimated 63,500 non-resident adults (49,500 at Toitū and 14,000 at DPAG) would have paid an $11 entry fee in the last financial year. Although the first year of entry fees may result in a $165,000 loss due to one off capital costs, however from year two onward a $135,000 operating surplus is forecast, despite reduced grant and retail income.

Estimated Operational Income and Expenses

Non-Dunedin Resident Entry Fee Model

 

Toitū

DPAG

Total

Estimated paying visitors

49,500[4]

14,000[5]

63,000

Income

 

 

 

Entry @ $11 ($9.57+gst)

$475,000

$135,000

$610,000

Total Income

$475,000

$135,000

$610,000

 

 

 

 

Expenses

 

 

 

Additional Labour [6]

$150,000

$75,000

$225,000

Loss of retail margin[7]

$50,000

$45,000

$95,000

Loss of grant income [8]

$30,000

$75,000

$105,000

Additional Marketing

$25,000

$25,000

$50,000

Total Expenses

$255,000

$220,000

$475,000

 

 

 

 

Surplus / Deficit

$220,000

($85,000)

$135,000

 

Financial Forecast for International Visitor Entry Fee Model

36        Based on 2014 data and current visitation figures, an estimated 32,000 international adult visitors (25,000 at Toitū and 7,000 at DPAG) would have paid an $11 entry fee in the last financial year. This would likely net an additional $75,000 revenue.

Estimated Operational Income and Expenses

International Visitor Entry Fee Model

 

Toitū

DPAG

Total

Estimated paying visitors

25,000

7,000

32,000

Income

 

 

 

Entry @ $11 ($9.57+gst)

$240,000

$70,000

$310,000

Total Income

$240,000

$70,000

$310,000

 

 

 

 

Expenses

 

 

 

Additional Labour [9]

$60,000

$30,000

$90,000

Loss of retail margin[10]

$50,000

$45,000

$95,000

Additional Marketing

$25,000

$25,000

$50,000

Total Expenses

$135,000

$100,000

$235,000

 

 

 

 

Surplus / Deficit

$105,000

($35,000)

$75,000

 

37        These are simple financial models to help forecast the likely income from charges based on one ticketing type. If entry charges are implemented, a combined ticket providing entry to combinations of the DPAG, Toitū, Lan Yuan and Olveston could be introduced providing an incentive to visit more than one museum.

OTHER REVENUE GENERATING OPPORTUNITIES AT DPAG AND TOITŪ

38        Toitū and DPAG currently generate $1.6m in external revenue through commercial activities including retail and conferencing, as well as external grants and sponsorships.  Growing external revenue requires implementing an entry charge or alternatively offering new paid experiences. Benchmarking data indicates that value-added, paid experiences are the most common method for museums in both Australia and New Zealand to increase revenue.

New Revenue Generating Opportunities:

39        A sophisticated ticketed experience at Toitū is currently under development and will be launched in 2025.  Based on Toitū’s retail conversion rate of 8% and an estimated 300,000 visitors, we forecast this new experience will generate approximately $200,000 in net income.

40        The DPAG offers the opportunity to host blockbuster international art exhibitions.  These are complex propositions and carry financial risks.  A typical, modest blockbuster 3-month art exhibition has a total delivery cost of approximately $1m. This includes fees, international freight, insurances, merchandise, installation, and security.  As a viable commercial proposition, in this scenario, the exhibition would need to generate $950k in ticket sales and $250k in merchandise sales and sponsorship income.  This is not unrealistic but carries financial risk if the exhibition does not attract the necessary visitation.

OPTIONS

Option One – Implement International Visitor entry charges

Impact assessment

41        Implementing entry charges at Toitū and DPAG will reduce the requirement for rates funding for these institutions.

Debt

Rates

Zero carbon

·        This option is unlikely to impact city or DCC emissions.

42        Implement an entry charge for international visitors at Toitū and DPAG.

Advantages

·        Continued high levels of visitation and engagement for Dunedin residents and all New Zealanders.

·        Continued accessibility to taoka, history, culture and art for Kāi Tahu who live outside of Dunedin.

·        Continued accessibility to collections, for non-residents for whom Dunedin’s cultural heritage is considered significant.

·        Increased external revenue, with reduced requirement for rates funding.

Disadvantages

·        Loss of revenue by not charging a non-residents entry fee.

·        Lower visitation, including locals who may be deterred by an entry charge for international visitors.

Option Two – Implement Non-Resident entry charges

Impact assessment

43        Implementing entry charges at Toitū and DPAG will reduce the requirement for rates funding for these institutions.

Debt

Rates

Zero carbon

·        This option is unlikely to impact city or DCC emissions.

44        Implement an entry charge for non-Dunedin residents at Toitū and DPAG.

Advantages

·        Increased external revenue, with reduced requirement for rates funding.

Disadvantages

·        Lower visitation and engagement including by locals who may be deterred by an entry charge and requiring proof of residency in Dunedin.

·        Negative impact on accessibility to taoka, history, culture and art for Kai Tahu who live outside of Dunedin.

·        Negative impact on accessibility to collections, for non-residents for whom Dunedin’s cultural heritage is considered significant.

Option Two – Status Quo

Impact assessment

45        There are no new rates, debt, or environmental impacts maintaining the status quo.

Debt

Rates

·        There are no new impacts on rates.

Zero carbon

·        This option is unlikely to impact city or DCC emissions.

46        Continue operations of Toitū and DPAG without a general non-resident admission charge. 

Advantages

·        Continued high levels of visitation.

Disadvantages

·        Continuing free entry for all is unlikely to generate the same level of revenue as the proposed entry fees options.

NEXT STEPS

47        If Council adopts entry charges at Toitū and Dunedin Public Art Gallery, staff will prepare a report for Council that outlines the entry fee that will be charged, who is to be charged and how and when this will be implemented. Staff will also commence planning for any operational changes required and prepare a comprehensive external communications plan to inform the public of this change.

Signatories

Author:

Cam McCracken - Director DPAG, Toitū, Lan Yuan and Olveston

Authoriser:

Jeanette Wikaira - General Manager Arts, Culture and Recreation

Attachments

There are no attachments for this report.


 

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 cultural, social and economic 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

Future Development Strategy

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

There are potentially both positive and negative effects on outcomes identified in the Social, Economic and Arts and Culture Strategies.

Māori Impact Statement

There may be cultural impacts for mana whenua who are not residents of Ōtepoti. Engagement with mana whenua regarding accessibility to cultural taoka would need to occur at both a governance and operational level.

Sustainability

Additional revenue may have positive impact on economic sustainability.

Zero carbon

This report does not have implications for city or DCC emissions.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

Implementation of entry fees may affect visitation and other Levels of Service measures.

Financial considerations

A decision to implement entry charges will net additional external income as discussed in the report.

Significance

As there is likely to be public interest involving two facilities considered significant strategic council-owned assets, this decision is considered significant in terms of the Council’s Significance and Engagement Policy.

Engagement – external

External engagement to date has involved initial discussions with the Dunedin Public Art Gallery Society and the Otago Settlers Association.

Engagement - internal

There has been internal engagement between DPAG, TOITU and Finance teams.

Risks: Legal / Health and Safety etc.

There may be social and reputational risk associated with the decision. These are noted in the report.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

All Community Boards will be interested in this topic as museums and cultural institutions are relevant and of significance to people from all areas of the city.

 

 


Council

28 January 2025

 

 

Vibrant Economy - Draft Operating Budget 9 year plan 2025-34

Department: Corporate Policy

 

 

 

 

EXECUTIVE SUMMARY

1          This report provides:

·        a summary of the services provided by Vibrant Economy

·        an overview of the draft operating (opex) budget for year one of the 9 year plan for Vibrant Economy

·        an overview of the variations from the year one budget for years two to nine for Vibrant Economy.

2          This report includes four attachments:

i)          Operating budget for 2025/26 (year one) – this details the movements from the 2024/25 year

ii)         Operating budget for 2025/26 to 2033/34 (nine years) – this details the projected operating budget throughout the nine year period

iii)        Funding Impact Statement for 2025/26 to 2033/34 (nine years) – this summarises the source and application of funding throughout the nine year period

iv)       Schedule of Fees and Charges.

3          The report asks the Council to adopt the draft operating budget and draft fees and charges for the purposes of developing the 9 year plan 2025-34 and consulting with the community.

RECOMMENDATIONS

That the Council:

a)         Adopts for the purposes of developing the 9 year plan 2025-34 and consulting with the community

i)          The draft operating budgets and funding impact statement for Vibrant Economy as shown/amended at Attachments A, B and C.

ii)         The draft 2025/26 fees and charges schedules for Vibrant Economy as shown/amended at Attachment D.

BACKGROUND

Vibrant Economy – summary of services

4          Vibrant Economy includes activities and services relating to:

·        Economic development

·        Destination Management (this includes Destination Marketing and Events)

·        isite Visitors Centre.

5          Vibrant economy is the Council’s economic development and destination management agency. Its purpose is to work on behalf of city residents to facilitate the city’s economic development. Its work centres on building and maintaining positive relationships with multiple audiences and stakeholders through a mix of communication and engagement activities, destination management and marketing. Three core focus areas are attracting, connecting and leading. It also measures and reports on economic outcomes.

Economic development

6          This team works in partnership with key stakeholders, including Grow Dunedin partners, businesses, and other agencies to promote the city, attract visitors and new residents, and encourage and support business and investment. It engages with cities in China to enable education, film, research, and business opportunities.

isite Visitors Centre

7          The Dunedin isite Visitors Centre enhances the visitor experience by providing advice and bookings for tours, attractions, accommodation, and transport, helping maximum visitor spend and stay. In conjunction with Port Otago, the isite is responsible for the city’s delivery of cruise management, supporting cruise operators and stakeholders.

Destination management (Destination Marketing and Events)

8          This team works with the local and regional industry and partners to position the region as a travel destination, to enhance the visitor sector and ensure it is sustainable. Destination marketing develops and carries out destination marketing campaigns both domestically and to international markets. The Events team manage civic and some community events partnering with stakeholders to ensure positive outcomes for the city. It supports stadium led major events and local events and provides funding opportunities and professional advice.

operating budgets – 2025/26

9          The 2025/26 draft operating budget for Vibrant Economy is $11.178 million. This is an increase of $2.260 million from the 2024/25 year. The following sections explain the revenue and expenditure changes from the previous year.

Revenue

Rates

10        Rates revenue is $10.533 million. This is an increase of $2.238 million from the 2024/25 year, due to an increase in grants expenditure.

External revenue

11        Total external revenue is $630k. This is an increase of $9k from the 2024/25 year reflecting the following changes:

a)         Masters Games revenue increases $71k as 2025/26 is an “on” year for this event.

b)        Economic development revenue relating to the Centre of Digital Excellence reduced $60k as there is no longer a service level agreement with CODE, under which CODE contributed funding towards the costs of communications and marketing support.

Expenditure

Personnel costs

12        Personnel costs are $3,268k.  This is a decrease of $49k from the 2024/25 year.  An explanation of changes to personnel costs are discussed in detail in the Chief Executive Overview Report that is on the agenda.

Operations and maintenance

12        Operations and maintenance expenditure is $2.239 million. This is a decrease of $239k from the 2024/25 year.  The decrease is mainly due to a budget transfer of $130k to consumables and general for destination marketing advertising in both the Australian and domestic markets.

13        Contracted services reduced $60k as there is no longer a service level agreement with the Centre of Digital Excellence.

Consumables and general

14        Consumables and general costs are $1.136 million. This is an increase of $191k from the 2024/25 year due to advertising costs of $130k being transferred from operations and maintenance (see comment above).

15        Research costs are increased $50k to provide economic and statistical data and forecasting information.

Grants and subsidies

16        Grants and subsidy costs are $3.216 million. This is an increase of $2.324 million from the 2024/25 year due to the following changes:

a)         An additional placeholder budget of $2 million to support Dunedin Venues Management Limited is included. This is discussed in a separate non-public report on the agenda.

b)        An increase of $280k for hosting and activation costs associated with a major event in 2025/26.

c)         A $44k grant for Masters Games which is being hosted in 2025/26.

Internal charges

17        Internal charge costs are $1.264 million. This is an increase of $36k from the 2024/25 year and relates to corporate administration, BIS and property rent charges.

Budget tradeoffs

18        There have been no identified significant budget tradeoffs for the Vibrant Economy activity. Any cost escalations have been managed through finding savings elsewhere within the activity budget, which has not materially changed the operating level of service.

fees and charges – 2025/26

19        Film permit fees are provided for in this activity.  The fees are proposed to increase by around 10% for the 2025/26 year.  This fee increase aligns with those film permit fees charged by other Councils.

OPERATING BUDGETS – YEARS 2-9

20        The 2025/26 operating budget has been inflation adjusted for years two to nine. Explanations of any further variations are explained below.

21        There is an allowance for cyclical events including Masters Games and Matariki.

Zero carbon

22        This group’s operational activities form part of the DCC’s emissions footprint, but the draft operating budget is unlikely to materially increase or decrease DCC emissions. City emissions may increase, or stay at the same level, due to activities such as destination marketing.

23        However, staff are collaborating to identify and progress opportunities to reduce emissions, as envisioned by the Destination Management Plan and the Zero Carbon Plan. The ‘Zero Carbon Investment Options’ report (under separate cover) sets out an investment option relating to Agricultural innovation that would add operational expenditure for this group.

Signatories

Author:

Nicola Morand - Manahautū (General Manager Policy and Partnerships)

Authoriser:

Sandy Graham - Chief Executive Officer

Attachments

 

Title

Page

a

Draft Operating Budget 2025/26 (year 1)

226

b

Draft Operating Budget - years 2 - 9

227

c

Draft Funding Impact Statement 2025-34

228

d

Draft fees and charges 2025/26

229

 


 

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

Future Development Strategy

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

Vibrant Economy activities contribute to the objectives and priorities of the above strategies.

Māori Impact Statement

Council budgets impact broadly across all Dunedin communities including Māori. The adoption of Te Taki Haruru – Māori Strategic Framework signals Council’s commitment to mana whenua and to its obligations under the Treaty of Waitangi.  Mana whenua and Mataawaka will have the opportunity to engage in the 9 year plan consultation process.

Sustainability

Vibrant Economy activities take into account the Council’s approach to sustainability.

Zero carbon

The draft operating budget for this group is unlikely to materially increase or decrease DCC emissions. City emissions may increase, or stay at the same level, due to activities such as destination marketing.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides draft budgets for Vibrant Economy to include in the 9 year plan.

Financial considerations

Financial considerations are detailed in this report.

Significance

The draft budgets are included in the development of the 9 year plan 2025-34, which is consulted on using the special consultative procedure.

Engagement – external

There has been no external engagement in developing the draft budgets for Vibrant Economy.

Engagement - internal

Councillors and staff from across council have been involved in development of the draft budgets.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Project identified in Community Board plans have been considered in the development of the draft budgets. Community Boards will be consulted on the 9 year plan 2025-34.

 

 


Council

28 January 2025

 



Council

28 January 2025

 



Council

28 January 2025

 



Council

28 January 2025

 



Council

28 January 2025

 

 

Governance and Support Services - Draft Operating Budget 2025/26

Department: Customer and Regulatory, Civic, Finance, Transport and Sustainability Group

 

 

 

 

EXECUTIVE SUMMARY

1          This report provides:

·        a summary of the services provided by Governance and Support Services

·        an overview of the draft operating (opex) budget for year one of the 9 year plan for Governance and Support Services

·        an overview of the variations from the year one budget for years two to nine for Governance and Support Services.

2          This report includes four attachments:

i)          Operating budget for 2025/26 (year one) – this details the movements from the 2024/25 year

ii)         Operating budget for 2025/26 to 2033/34 (nine years) – this details the projected operating budget throughout the 9 year period

iii)        Funding Impact Statement for 2025/26 to 2033/34 (nine years) – this summarises the source and application of funding throughout the 9 year period

iv)       Schedule of Fees and Charges.

3          The report asks the Council to adopt the draft operating budget and draft fees and charges for the purposes of developing the 9 year plan 2025-34 and consulting with the community.

RECOMMENDATIONS

That the Council:

a)         Adopts for the purposes of developing the 9 year plan 2025-34 and consulting with the community

i)          The draft operating budgets and funding impact statement for Governance and Support Services as shown/amended at Attachments A, B and C.

ii)         The draft 2025/26 fees and charges schedules for Governance and Support Services as shown/amended at Attachment D.

 

BACKGROUND

Governance and Support Services – summary of services

4          Governance and Support Services include activities and services related to:

·        Business Information Systems (BIS)

·        Civic and governance

·        Corporate leadership

·        Corporate Policy

·        Council communications and marketing

·        Customer services

·        Finance

·        Fleet operations

·        Investments

·        People, projects and risk

·        Waipori Fund

5          Governance and Support services contribute to all activities of the Council by providing technical and administrative support.

operating budgets – 2025/26

6          The 2025/26 draft operating budget for Governance and Support Services is $51.951 million This is an increase of $3.455 million from the 2024/25 year. The following sections explain the revenue and expenditure changes from the previous year.

Revenue

Rates

7          The Governance and Support Services group includes the corporate support activities of Council and realises investment revenue (such as interest and dividends received from Dunedin City Holdings Limited ‘DCHL’ and the Waipori Fund).

8          Each corporate activity is funded through a combination of rates revenue and internal revenue (charged to other council activities). Since Council investments return a net surplus, rates revenue for the Governance and Support Services, after taking into consideration the investment surplus within this group, there is no overall rate income required.

9          Due to the reallocation of 9 year plan groups of activities (as approved by Council on 10 December 2024) which differ from the previous 10 year plan, the 2024/25 budget and 2023/24 actual show negative rates revenue.

External revenue

10        Total external revenue is $23.591 million. This decrease of $423k from the 2024/25 year is made up from the following:

·    Dividend income from DCHL is budgeted at $9 million, a reduction of $2 million for the 2025/26 and 2026/27 years. A proposal for DCHL to fund DRL by $2 million per annum is considered in a separate report on the agenda.

·    Revenue from the Waipori Fund has increased by $1.049 million.

·    An increase of $283k for election recoveries.

Grants and subsidies – operating

11        Total revenue from grants and subsidies (operating) is $2.018 million. This is a decrease of $641k from the 2024/25 year reflecting a reduction in Better off Funding. Better off Funding has been provided for various projects. The operating grant continues to be managed corporately and allocated to relevant activities via internal revenue.

Internal revenue

12        Total internal revenue is $29.051 million. This is an increase of $1.184 million from 2024/25 due to:

·    BIS and Corporate charges have increased $751k in line with the Local Government Cost Index.

·    Fleet Operations revenue has increased $423k to recover increased costs.

Expenditure

Personnel costs

13        Personnel costs are $19.372 million. This is an increase of $2.622million from the 2024/25 year.

14        The budget provides for new staff:

·        One additional FTE has been included in the Governance Team to address the LGOIMA workload. The increase in LGOIMA related work has increased in volume and complexity.

 

·        Additional FTE have been included in the Rates and Revenue Team.

15        Further explanation of changes to personnel costs are discussed in detail in the Chief Executive Overview Report on the agenda.

Operations and maintenance

16        Operations and maintenance expenditure is $7.416 million. The increase of $1.601 million from the 2024/25 year is due to:

·    Investment Account costs have increased by $1.000 million. Previously a negative maintenance savings allowance of $1.000 million was provided for. This amount has now been reflected in activities.

·    BIS contract costs have reduced $193k. Changes to online storage have also reduced costs by $80k.

·    Fleet Operations expenditure has increased $172k, mainly reflecting expected increases in fuel, road user charges and fleet management costs. 

·    Rating database valuation costs have increased by $20k, reflecting contract CPI increases.

·    Civic and Governance expenditure has increased by $733k for the 2025 election.

Consumables and general

17        Consumables and general costs are $10.551 million. The decrease of $284k from the 2024/25 year is due to:

·    Corporate Planning costs have decreased by $303k due to reduced costs (audit and promotion) associated with the 9 year plan which occur in 2024/25.

·    Customer Solutions costs have decreased $208k due to the removal of the Customer Services Refresh project.

·    BIS software licence costs reduced $70k from 2024/25 year, reflecting changes to online software solutions.

·    Technical advice relating to development contributions and taxation have contributed an additional $48k. 

·    Technical support costs for the implementation of Local Water Done Well service delivery of $32k have been included, which are fully funded by Better off Funding.

·    Elected members remuneration cost increased by $59k from 2024/25 year.

Grants and subsidies

18        Grants and subsidy costs are $201k. This is an increase of $119k from the 2024/25 year. The increase is a provision of unallocated grants for expired grants in 2024/25:

·        NZ Sports Hall of Fame $47k

·        Dunedin Wildlife Hospital $75k.

Internal charges

19        Internal charges are $9.444 million. The decrease of $434k from the 2024/25 year is due to:

·    Better off Funding grant revenue is allocated out to activities, through internal charges in the Investment Account. Revenue has decreased $641k, which has a corresponding offset to internal expenditure, accounting for the majority of movement for internal charges for the Governance and Support Services group.

·    Corporate internal charges increased $191k across all activities, reflecting Local Government Cost Index increases.

Depreciation

20        Depreciation costs are $2.969 million. This is a decrease of $82k from the 2024/25 year reflecting reduced capital expenditure in BIS.

Interest

21        Interest costs are $1.810 million. This is a decrease of $92k from the 2024/25 year. This reflects the lower projected interest rate of 4.12% for the 2025/26 year.

Budget tradeoffs

22        BIS is in the process of the IT Managed Services Request for Proposal (RFP). The IT Managed Services contract is a critical outsourcing arrangement supporting a wide range of DCC’s IT functions. The current supplier has provided these services for the past nine years, during which the pricing has remained fixed. 

23       The draft BIS operational budget does not include any provisions for a pricing uplift, and the budget will be reviewed once the tender process is concluded.  If required, a report will be presented to the Council as part of 9 year plan deliberations.

fees and charges – 2025/26

24        Land Information Memorandum fees have been increased between 4.4% – 4.8% to reflect increased costs.

OPERATING BUDGETS – YEARS 2-9

25        The 2025/26 operating budget has been inflation adjusted for years two to nine. Explanations of any further variations are explained below.

26        Following two years of a reduced dividend from DCHL (as explained in paragraph 10), dividend revenue returns to $11.000 million from year 3 (2027/28) and remains consistent for the remainder of the 9 year plan period.

27        Allowances have been made for cyclical events, including Council Elections (costing $553k every 3 years), Long Term Plan preparation (costing $383k every 3 years) and aerial photography (costing $115k every 4 years).

28        The Better off Funding programme will be completed in 2026/27 (year 2). Associated revenue and Internal costs have been adjusted in accordance with the current allocation.

Zero Carbon

29        The draft operating budget for Governance and Support Services is likely to marginally reduce DCC and city emissions. The draft operational and capital budgets for Business Information Systems include projects to improve service efficiency, provide remote options, and reduce hardware demands. This investment, along with alignment with the Zero Carbon Policy, is likely to marginally reduce emissions from operations (and city emissions) over the term of the 9 year plan.

Signatories

Authoriser:

Carolyn Allan - Chief Financial Officer

Robert West - General Manager Corporate Services

Attachments

 

Title

Page

a

Draft Operating Budget 2025/26 (year 1)

238

b

Draft Operating Budget 2025-34 (9 years)

239

c

Draft Funding Impact Statement 2025-34 (9 years)

241

d

Draft fees and charges for 2025/26

242

 


 

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

Future Development Strategy

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

Governance and Support Services activities contribute to the objectives and priorities of all strategies.

Māori Impact Statement

There are no specific impacts for tangata whenua.

Sustainability

Governance and Support Services activities take into account the Council’s approach to sustainability.

Zero carbon

The draft operating budget for Governance and Support Services is likely to marginally reduce DCC and city emissions.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides draft budgets for Governance and Support Services to include in the 9 year plan.

Financial considerations

Financial considerations are detailed in this report.

Significance

The draft budgets are included in the development of the 9 year plan 2025-34, and they form the basis for setting rates which is considered significant and is consulted on using the special consultative procedure.

Engagement – external

There has been no external engagement in developing the draft budgets for Governance and Support Services.

Engagement - internal

Councillors and staff from across council have been involved in development of the draft budgets.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Project identified in Community Board plans have been considered in the development of the draft budgets. Community Boards will be consulted on the 9 year plan 2025-34.

 

 


Council

28 January 2025

 



Council

28 January 2025

 



Council

28 January 2025

 



Council

28 January 2025

 



Council

28 January 2025

 

 

Resilient City - Draft Operating Budget 9 year plan 2025-34

Department: 3 Waters and Executive Leadership Team

 

 

 

 

EXECUTIVE SUMMARY

1.         This report provides:

·        a summary of the services provided by the Resilient City Group

·        an overview of the draft operating (opex) budget for year one of the 9 year plan for Resilient City

·        an overview of the variations from the year one budget for years two to nine for Resilient City.

2.         This report includes three attachments:

i.          Operating budget for 2025/26 (year one) – this details the movements from the 2024/25 year

ii.         Operating budget for 2025/26 to 2033/34 (nine years) – this details the projected operating budget throughout the nine year period

iii.        Funding Impact Statement for 2025/26 to 2033/34 (nine years) – this summarises the source and application of funding throughout the nine year period

3.         The report asks the Council to adopt the draft operating budget for the purposes of developing the 9 year plan 2025-34 and consulting with the community.

RECOMMENDATIONS

That the Council:

a)         Adopts for the purposes of developing the 9 year plan 2025-34 and consulting with the community

i)          The draft operating budgets and funding impact statement for Resilient City as shown/amended at Attachments A, B and C.

BACKGROUND

Resilient City – summary of services

4.         Resilient City includes activities and services related to:

·        City development

·        City growth

·        Civil defence

·        Community partnerships

·        Housing policy

·        South Dunedin Future and

·        Zero carbon.

City development

6.         This team leads strategic spatial planning based on the requirements of the National Policy Statement on Urban Development including undertaking housing and business land capacity assessments and preparing and reviewing the Future Development Strategy that must ensure there is enough housing and business land to meet projected household growth and there will enough infrastructure to service growth. It also prepares and reviews the District Plan (2GP) and it monitors the effectiveness of the 2GP and responses to changes in national and regional policy direction. It leads engagement on national and regional resource management plans and policies and legislative change and reform. It leads the centres programme and minor amenity upgrades and provides urbans design support to other council projects as well as providing assessments as part of resource consents on biodiversity, heritage and urban design.

City growth

7.         This team fosters relationships to facilitate early engagement with developers prior to resource consent applications, it reviews and assesses plans to ensure infrastructure vested to Council meets relevant standards, and ensures technical issues related to new developments and infrastructure are assessed, actioned and remedied.

Civil defence

8.         Civil defence staff contribute to civil defence at local, regional and national levels. They provide emergency and risk management that covers all phases of emergence – risk reduction, readiness, response and recovery.

Community partnerships

9.         This team delivers services, activities and support for community groups including youth, Enviroschools, Taskforce Green, Keep Dunedin Beautiful, and Council-mandated advisory groups. It also manages the community contestable grants.

Housing policy

10.       This team delivers on the Ōtepoti Dunedin Housing Plan 2022 which aims to strengthen and create connections, investigate ways to increase the quality of housing, find better ways to use land for housing, make it easier to work with Council and look after our most vulnerable. The team also provides an eco-design service of resources and practical advice for those in existing homes or for a new build.

South Dunedin Future

11.       South Dunedin Future is a joint five-year initiative between Dunedin City Council and the Otago Regional Council to develop a climate change adaptation plan for South Dunedin, an area which is exposed to a range of natural hazards such as surface flooding, rising groundwater and rising sea levels.

Zero carbon

12.       This team monitors the Council and Dunedin’s emissions and prepares emission reduction plans. It leads partnerships in the area of climate change mitigation, monitors effectiveness of emission reduction plans and responds to changes in national and regional direction.

operating budgets – 2025/26

13.       The 2025/26 draft operating budget for Resilient City is $11.528 million. This is a decrease of $448k from the 2024/25 year. The following sections explain the revenue and expenditure changes from the previous year.

Revenue

Rates

14.       Rates revenue is $11.132 million. The increase of $605k from the 2024/25 year is to fund increased personnel costs and costs previously funded by Better Off Funding.

External revenue

15.       Total external revenue is $256k. The $81k increase in revenue is mainly due to $70k from ORC contribution to Future Development Strategy and $11k for new consent recovery charges.

Internal revenue

16.       Total internal revenue is $78k in Community Partnerships for Enviroschool cost recovery from the Waste and Environment Services. The decrease is mainly due to the removal of Better Off funding revenue in South Dunedin Future ($725k), Zero Carbon ($139k), City Growth ($160k) and City Development ($98k).

Expenditure

Personnel costs

17.       Personnel costs are $5.380 million. The increase of $297k from the 2024/25 year. Further explanation of changes to personnel costs are discussed in detail in the Chief Executive Overview Report that is on the agenda.

Operations and maintenance

18.       Operations and maintenance expenditure is $451k. This is a decrease of $128k from the 2024/25 year mainly due to reduction in South Dunedin Future projects.

Consumables and general

19.       Consumables and general costs are $1.208 million. This is a decrease of $392k from the 2024/25 year, mainly due to a reduction in Better off Funded projects in South Dunedin Future.

Grants and subsidies

20.       Grants and subsidy costs are $2.696 million. This is a decrease of $301k from the 2024/25 year due to the following changes:

·        A transfer of property arrangements grants $295.8k from Community Partnerships to Property, and

·        $5.6k landfill grants not being required. This was previously a ratepayer funded initiative for non-profit entities to offset costs of using the landfill. The $5k saving was used to increase the budget for the Keep Dunedin Beautiful project management cost.

Internal charges

21.       Internal charge costs are $1.610 million. The increase of $82k from the 2024/25 year was mainly due to increased internal fleet charges for Task Force Green and increased administration support payment to Resource Consents.

Budget tradeoffs

City Development

22.       The City Development team has looked at a range of trade-off opportunities and the following budget savings have been included in the draft budget:

·        not including funding for plan change 1 and plan change 2 appeals.

·        a reduction in the budget for biodiversity assessments, which are expected to reduce while the national policy statement on indigenous biodiversity is revised as part of the Government’s Resource Management Act (RMA) reform programme.

·        removal of funding for heritage building assessments for heritage scheduling, seeking to manage these entirely in-house.

23.       A priority area of work for 2025 onwards will be preparing for, and adapting to, the Government’s proposed RMA reform programme. As a trade-off, District Plan change work will likely be limited to only changes that are required by national or regional direction or where binding agreements are in place following plan appeals or where there is evidence of significant issues with the Plan not achieving its objectives.

24.       It is likely private plan changes will feature over the period of this LTP as the 2GP is now mostly operative. Consequently, emerging trade-offs / activity prioritisation will be required to keep to approved budgets.

25.       A separate report, Ōtepoti Dunedin Heritage Action Plan: Implementation Options, discusses options for the extent and rate at which the Heritage Action Plan is delivered. 

City Growth

26.       The City Growth team has also looked at a range of trade-off opportunities particularly with respect to in-sourcing application assessments and the production of developer focussed guidance and best practice material, therefore providing a potential reduction in external consultancy costs.

fees and charges – 2025/26

27.       There are no fees and charges for this activity.

OPERATING BUDGETS – YEARS 2-9

28.       The 2025/26 operating budget has been inflation adjusted for years two to nine.

Zero Carbon

29.       The draft operating budget for this group will support DCC and city emissions reduction. Work on housing quality, community partnerships, biodiversity, urban design, and spatial planning all support emissions reduction. The Zero Carbon team supports both DCC and city emissions reduction through reporting, partnerships, policy and strategy development, and by leading several Zero Carbon Plan projects.

30.       The ‘Zero Carbon Investment Options’ report (under separate cover) sets out four investment options that would add operational expenditure for this group:

a.         Supporting communities to transition through behaviour change (Zero Carbon).

b.         Investing in priority community-led emissions reduction initiatives (Zero Carbon).

c.         Deliver residential energy efficiency programme for additional households (Housing).

d.         Develop a Blue and Green Networks Plan (City Development).

Signatories

Author:

David Ward - General Manager, 3 Waters and Transition

Scott MacLean - General Manager, Climate and City Growth

Authoriser:

Sandy Graham - Chief Executive Officer

Attachments

 

Title

Page

a

Draft Operating Budget 2025/26 (year 1)

250

b

Draft Operating Budget - years 2 - 9

251

c

Draft Funding Impact Statement 2025-34

252

 


 

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

Future Development Strategy

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

Resilient City activities contribute primarily to the objectives and priorities of the above strategies.

Māori Impact Statement

Council budgets impact broadly across all Dunedin communities including Māori. The adoption of Te Taki Haruru – Māori Strategic Framework signals Council’s commitment to mana whenua and to its obligations under the Treaty of Waitangi.  Mana whenua and Mataawaka will have the opportunity to engage in the 9 year plan consultation process.

Sustainability

Resilient City activities take into account the Council’s approach to sustainability.

Zero carbon

The draft operating budget for this group is likely to support DCC and city emissions reduction.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides draft budgets for Resilient City to include in the 9 year plan.

Financial considerations

Financial considerations are detailed in this report.

Significance

The draft budgets are included in the development of the 9 year plan 2025-34, which is consulted on using the special consultative procedure.

Engagement – external

There has been no external engagement in developing the draft budgets for Resilient City.

Engagement - internal

Councillors and staff from across council have been involved in development of the draft budgets.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Project identified in Community Board plans have been considered in the development of the draft budgets. Community Boards will be consulted on the 9 year plan 2025-34.

 

 


Council

28 January 2025

 



Council

28 January 2025

 



Council

28 January 2025

 



Council

28 January 2025

 

 

Citywide Climate Resilience Framework

Department: Climate and City Growth

 

 

 

 

EXECUTIVE SUMMARY

1          The purpose of this report is to seek Council endorsement of a proposed citywide climate resilience framework and approval of a preferred option for implementation.

2          The framework will enhance council’s climate adaptation and resilience work, enabling a more effective citywide response to the current and anticipated impacts of natural hazards and climate change.

3          A proposed Citywide Climate Resilience Framework graphic is at Attachment A.

4          A summary of implementation options and scheduling is at Attachment B.

RECOMMENDATIONS

That the Council:

a)         Notes the Citywide Climate Resilience Framework report.

b)        Decides a preferred option.

c)         Notes that any resource required for the preferred option will be added to draft budgets.

d)        Notes that staff will partner with mana whenua and consult with Otago Regional Council (ORC) on the scope, design, and implementation of the framework.

BACKGROUND

5          In May 2023, Council discussed the anticipated impacts of sea-level rise on selected council assets and the potential costs associated with their ongoing maintenance and renewal. Subsequently, Council resolved:

Moved (Cr Sophie Barker/Cr Kevin Gilbert):

That the Council:

a)    Adds the development of a Climate Adaptation Plan to its forward work plan.

b)    Notes that progress updates will be reported to the Strategy Planning and Engagement Committee.

c)    Notes the first report will provide a stocktake of the current work and outline next steps including resourcing requirements.

d)    Notes that the first report will be to the November 2023 Strategy Planning and Engagement Committee meeting.

Motion carried (CNL/2023/117) with Cr Lee Vandervis recording his vote against.

6          At their meeting of 5 December 2023, Council considered a report outlining options for developing a climate change adaptation plan for Dunedin City. Council resolved:

Moved (Cr Sophie Barker/Cr Christine Garey):

That the Council:

a) Endorses further work to scope development of a Dunedin adaptation plan based on the following three options:

i)    Option One (Comprehensive/Core Adaptation Function) – Establishing a dedicated adaptation planning resource within DCC with responsibility for developing (i) a high-level, city-wide adaptation plan for Dunedin; (ii) a series of lower-level plans covering specific domains or smaller geographic areas in greater detail (as required); and (iii) managing existing adaptation planning work.

ii) Option Two (Comprehensive/Programme) – Establishing a dedicated programme to develop (i) a high-level city-wide adaptation plan for Dunedin and (ii) a series of lower-level plans covering specific domains or smaller geographic areas in greater detail (as required).

iii) Option Three (Limited/Project) – Establishing a dedicated project to develop a high-level city-wide adaptation plan for Dunedin.

b)     Notes that the costed options will be provided for Council in time for consideration as part of the deliberations for the 10 year plan in May 2024.

c)      Notes that as part of the development of the options there will be workshops with Councillors, engagement with mana whenua and other key stakeholders.

Motion carried (CNL/2023/294) with Cr Lee Vandervis recording his vote against

7          Activity reporting to the Strategy, Planning and Engagement Committee (SPEC) on 19 June and 16 October 2024 provided updates on development of an approach to establishing a citywide adaptation framework and plan for Dunedin. A workshop was held with Councillors on 12 November 2024, and this report outlines the proposed way forward, incorporating feedback.

DISCUSSION

Defining ‘climate resilience’ and ‘climate adaptation’

8          The terms ‘resilience’ and ‘adaptation’ are often used interchangeably in climate change discourse. While they are complementary terms, there are subtle but important differences. Adaptation is typically defined as adjusting to the actual or expected climate and its effects, to reduce harm and take advantage of new opportunities. Resilience describes the capacity to anticipate and cope with shocks or adverse events, and to recover from the associated impacts in a timely and efficient manner. In this sense, adaptation is part of and contributes to resilience.

9          While the original Council motion (CNL/2023/117) called for development of a ‘climate adaptation plan’, subsequent exchanges with Councillors and work by staff have identified a wider set of relevant considerations. As such the broader term ‘climate resilience’ is used in this report to reflect the more holistic approach represented by the proposed framework.

Existing approach to climate resilience

10        The Dunedin City Council (DCC) and Otago Regional Council (ORC) undertake a wide range of resilience-related activities as part of core council business.

11        Climate change is central to infrastructure and land use planning, where council considers natural hazards and the associated risks, now and in the future. Considerations can include adapting legacy infrastructure and land use, where previous planning may not have accounted for new and emerging risks, or developing new and improved infrastructure and land use, to account for anticipated risks and increase resilience. In some instances, the uncertainties and complexities associated with potential impacts of climate change have exceeded normal council capacities and required the establishment of dedicated projects and programmes.

12        DCC currently has two such climate resilience initiatives, South Dunedin Future and St Clair-St Kilda Coastal Plan, with other climate resilience-related work occurring as part of standard infrastructure and land use planning activities. ORC has two discrete resilience-focussed initiatives, in Glenorchy and the Clutha Delta, supplemented by several smaller climate resilience and adaptation projects incorporating natural hazards monitoring, investigation, and prediction.

13        The councils occasionally collaborate on climate resilience-related issues, including strategic land use planning processes such as the Future Development Strategy, infrastructure-related issues such as pluvial flood schemes, and programmes and projects like South Dunedin Future.

Case for enhanced climate resilience

14        There is a growing appreciation of both the challenges presented by a changing climate, and the limitations of existing climate resilience approaches. The increasing frequency and severity of weather events, such as the Auckland Anniversary floods and Cyclone Gabrielle in 2023, combined with gradual changes, such as coastal erosion and rising groundwater affecting South Dunedin, are indications of the growing speed, scale, and complexity of climate impacts.

15        The Ministry for the Environment’s best practice guidance on climate adaptation, and the Finance and Expenditure Committee’s October 2024 inquiry into climate adaptation, have both highlighted the importance of, and need for, better quality natural hazard information, risk assessment, and adaptation planning to strengthen climate resilience. In a recent report examining how well councils are responding to a changing climate, the Office of the Auditor General (OAG) described climate change and its impacts as “the most enduring and pervasive challenge they [councils] will face, extending beyond council boundaries and across multiple electoral terms”. The OAG recommended collaboration across councils, establishing clear and measurable climate strategies and priorities, effective governance, and transparent public reporting and accountability.

16        Such measures are already in place for many of New Zealand’s large financial organisations. Since January 2023, the Government has made climate-related disclosures mandatory for some financial market participants, including large publicly listed companies, insurers, banks, non-bank deposit takers and investment managers. Improving transparency and revealing climate-related information is intended to ensure climate change impacts are routinely considered by financial markets, support greater foresight and responsibility, and lead to more efficient allocation of capital. The intent is to increase the resilience of the financial system and smooth the transition to a more sustainable, low emissions economy. Mandatory disclosures will also help address risks outlined in the National Climate Change Risk Assessment.

17        While climate resilience is already factored into a wide range of council business and is a feature in some existing systems and processes, this currently occurs sporadically and without a clear strategy or central coordination. The cross-cutting nature of climate change requires purposeful collaboration across teams, sectors, and organisations to develop and implement fit-for-purpose adaptation responses and enhance wider climate resilience.

Māori participation in the adaptation and resilience process

18        As noted in DCC’s submission to the Government’s Inquiry into Climate Change (October 2023), Māori participation in the adaptation process is of critical importance. Māori involvement throughout the climate adaptation planning process will be essential, enabling mana whenua to partner with councils, while also affording space for Māori to also determine their own approach to adaptation and developing wider climate resilience.

19        There are a range of barriers to Māori adaptation that need to be acknowledged and addressed. For example, consideration must be given to the special nature of Māori land in adaptation planning and an adaptation system needs to account for the potential for climate change to have a disproportionate impact on Māori.

20        It will be important to ensure access to relevant information, and to seek to embed te ao Māori and mātauraka Māori in the design and operation of the citywide climate resilience framework. Such considerations will require partnering with mana whenua and local Māori communities to support the design, establishment, and operation of the proposed framework.

Overview of proposed citywide climate resilience framework and adaptation plan

21        This report proposes an approach to enhancing councils’ climate resilience response, making it more effective, efficient, and sustainable – and ultimately ‘fit for purpose’. This includes putting a more formal structure around councils’ climate resilience work, which would include a citywide climate resilience framework and adaptation plan. The framework seeks to utilise existing council systems and processes across both city and regional councils, enhancing these with additional climate resilience-focussed activities where required, and scheduled to feed into council planning and budgeting cycles as appropriate.

22        The framework includes four key stages, operating in a cycle: (i) natural hazard assessment; (ii) risk assessment; (iii) adaptation planning; and (iv) adaptation action. The key elements of each stage would be summarised to form a citywide adaptation plan. The proposed citywide climate resilience framework is detailed below and summarised in Attachment A.

Stage 1 – Natural Hazards

23        The first stage of the framework would focus on natural hazards to gain an understanding of the ‘hazard scape’ affecting Dunedin now and in the future. The ORC plays a central role in monitoring, investigating, and predicting natural hazards across Otago, including in Dunedin, where there is an extensive body of knowledge and existing work programmes.

24        ORC is in the process of establishing a natural hazards prioritisation framework, which could be used to identify, classify, and prioritise natural hazards affecting Dunedin. This hazards ‘screening’ process could also identify information gaps, guide data collection, and be tailored to the information requirements of adaptation planning work in other stages of the framework.

25        Under the proposed citywide climate resilience framework, ORC would lead and resource all natural hazards-related work, in line with its organisational mandate, capabilities, and capacity. Initial staff engagement with ORC indicates close alignment between ORC’s current and intended natural hazards work and Stage 1 of the proposed framework, however, a formal approach would be required to confirm ORC’s support for the framework, and to identify and agree roles, responsibilities, and deliverables.

Stage 2 – Risk Assessment

26        The second stage of the framework would consider the risks presented to people, places, and assets in Dunedin from existing natural hazards and future hazards associated with a changing climate. Using natural hazard information from Stage 1 as a basis, the risk assessment process would examine the exposure, vulnerability, and direct physical risks presented by current and future hazards. It would also consider cascading risks, such as those to social, economic, and environmental wellbeing, to provide a more holistic picture of the potential consequences of each risk. This process typically involves engagement with affected communities, including mana whenua, to better understand consequences of each risk if it were realised.

27        Climate change and natural hazard risk assessments are common, occurring at national, regional, and local levels across New Zealand. It is envisaged that a risk assessment for Dunedin would occur on a periodic cyclical basis (5–6 yearly), reflecting the approach central government has adopted for the National Climate Change Risk Assessment (NCCRA). This periodic risk assessment would utilise the latest climate change and natural hazard information, provide a baseline risk profile for the city, and inform climate adaptation planning proposed in Stage 3 of the framework (which would explore options for mitigating identified risks).

28        The risk assessment for Dunedin would ideally be aligned to the national and regional climate risk assessments, cascading from these documents to provide greater levels of detail at the scale required for Dunedin. It could have a flexible scope and varying levels of detail as required to support adaptation planning across the city.

29        For example, the Fitzharris Report (2011) was effectively a climate risk assessment for Dunedin, which identified South Dunedin as a ‘hot spot’ and provided the basis for the adaptation planning work that became South Dunedin Future. A similar risk ‘hot spot’ process is envisaged under Stage 2 of the framework, where risks would be identified, screened, and prioritised. More urgent or important risks would be advanced to adaptation planning to identify suitable risk mitigation, with less urgent or less important risks earmarked for monitoring and review in future cycles of the risk assessment.

Stage 3 – Adaptation Planning

30        The third stage of the framework would involve identifying appropriate mitigations to the risks identified in Stage 2, which would occur through varying levels of adaptation planning. An initial screening process would triage the risks into three response categories: (i) infrastructure-led response; (ii) land use planning-led response; and (iii) adaptation planning-led response.

31        An adaptation planning-led response might occur, for example, when: (i) a risk cannot be satisfactorily managed through normal infrastructure and land use planning processes; (ii) where the affected area(s) include extensive residential, commercial, or industrial development; (iii) or where complexities, uncertainties, or special circumstances are such that it justifies a dedicated place-based adaptation planning process.

32        Adaptation planning is scalable, and in the framework is proposed to occur at three levels: (i) streamlined adaptation planning to supplement standard infrastructure and land use planning processes (e.g. support with best practice, communications, and community engagement); (ii) a place-based adaptation planning project (e.g. St Clair-St Kilda Coastal Plan); or (iii) a complex place-based adaptation planning programme (e.g. South Dunedin Future).

33        The adaptation planning work would have various information needs, including in terms of natural hazards and risk. These information requirements would be fed back into Stage 1 and 2 of the framework, informing the focus of the natural hazards investigation, monitoring and prediction, as well as guiding the focus of subsequent cyclical risk assessment work (or identifying if or where additional risk assessment work was required).

34        The primary outputs from Stage 3 would be adaption plans, which would detail a range of adaptation actions recommended to mitigate the risks and hazards identified in previous stages. The intention would be to scope, scale, and schedule this adaptation planning work so that it fed directly into the cycle of council decision making processes – which would form the bridge between planning and implementation (or ‘adaptation action’ undertaken in Stage 4).

Stage 4 – Adaptation Action

35        The adaptation plans developed in Stage 3 would provide a range of stakeholders with detailed assessments of hazards, risk, and recommended options for mitigating those risks through infrastructure, land use planning, and other adaptation actions. These would effectively be blueprints for enhancing climate resilience across the city. For internal stakeholders, this information would inform a range of strategic, operational, planning, and budgeting decisions – enabling the mainstreaming of climate resilience considerations within council’s core business.

36        Council groups, departments, and teams would be able to integrate those climate resilience considerations as appropriate, determining their level of importance relative to other council objectives and priorities. If climate resilience considerations were assessed as sufficiently important, they could be prioritised by council teams, and subsequently fed into council’s corporate planning processes (e.g. annual plan, long term plan, budget setting), infrastructure processes (e.g. capital expenditure plan, 30-year infrastructure strategy, building regulations), and land use planning (e.g. Future Development Strategy, District Plan changes), as appropriate.

37        The funding of adaptation actions would be subject to standard council processes and would occur only if adaptation actions formed part of each council team’s approved operational or capital expenditure. If or when approved, for example through council’s annual plan or long-term planning processes, the adaptation actions could roll out according to respective implementation plans. The expectation would be that these adaptation actions would materially reduce the corresponding climate or natural hazard risk thereby enhancing climate resilience. The resulting reduction in risk profile could be accounted for in subsequent stages and cycles of the climate resilience framework, informing a revised assessment of the relevant risk, associated adaptation planning requirements, and adaptation actions (if or as required). 

38        In essence, Stage 4 of the citywide climate resilience framework would use council’s existing corporate planning, infrastructure, and land use planning processes to assess whether proposed adaptation actions produced in Stage 3 justify funding, relative to other council priorities. The key change is that this assessment would be informed by detailed hazard, risk, and adaptation planning information and occur within a wider, more coherent strategic framework.

Adaptation Plan

39        Key elements of each of the four stages of the framework would be summarised into a citywide adaptation plan for Dunedin. This plan could take a number of different forms but would capture important information relating to the current and future environment, the risks presented to Dunedin, adaptation planning processes associated with those risks, and actions being taken in response. It would provide a clear and holistic picture of the climate change challenges facing Dunedin and the work being undertaken to address these and enhance climate resilience.

40        This plan would be updated periodically, on a sequence best aligned to relevant council processes (e.g. every 3 years, to align with long term plan and budget cycles), to ensure it remained relevant and fit for purpose.

Benefits of the proposed citywide climate resilience framework

41        The key benefits of establishing a citywide climate resilience framework would be:

a)         Efficiency - Improved efficiency by using existing council systems and processes; avoiding the duplication and transaction costs associated with bespoke, disconnected, and one-off climate adaptation and resilience projects and other temporary parallel structures.

b)        Effectiveness - Improved effectiveness by implementing pro-active, evidence-based, and prioritised adaptation actions only; avoiding reactive, dis-jointed, and ineffective actions that do not make a material difference to risk reduction; and

c)         Sustainability – Improved sustainability by using mostly existing resources to operate a coherent internal system on a cyclical basis, allowing for periodic review of hazards, risk, adaptation options, and holistic decision-making, avoiding reactive surges in potentially unsustainable adaptation actions and expenditure after disaster events.

Implementation of the citywide climate resilience framework

42        A key strength of the proposed citywide climate resilience framework is that it would largely utilise existing council systems and processes, enhancing these where required, to align DCC’s response to the growing climate challenges facing Dunedin. This approach is expected to be more efficient, effective, and sustainable for council that would enhance the city’s climate resilience. It does, however, represent a different state of operating and additional effort and an internal change process would be required to finalise design of the framework, establish and transition from current to new operating model, and to run that new model on a day-to-day basis.

43        This anticipated additional effort is summarised below:

a)         Finalise design of the citywide climate resilience framework: This would include completing the key design elements of the framework; engaging with mana whenua and ORC to confirm support, agree governance and management arrangements, operational roles and responsibilities; and confirm resourcing (including personnel and operating expenditure).

b)        Establish framework and transition to new operating model: This would include establishing preferred governance, management, and operational resources to oversee and deliver the framework, including codifying how it would integrate with existing council systems and processes. The initial operational task would be a stocktake of existing work being undertaken in each of the four stages of the framework; summarising existing work into an interim adaptation plan.

c)         Implementing a new climate resilience framework operating model: This would involve replicating the processes described in b) transition (above), but on a more formal and permanent basis, including commissioning: (i) a multi-year workplan of natural hazards work; (ii) a natural hazard and climate change risk assessment for Dunedin; (iii) a multi-year workplan of adaptation planning; (iv) formalising a schedule and process for feeding climate adaptation plans into council decision-making processes; (v) developing budget bids for recommended adaptation actions; and (vi) formalising feedback loops within the framework to ensure it operates as a self-sustaining cycle.

Resourcing

44        Three options are presented for implementing the proposed citywide climate resilience framework – deferred, staged, or accelerated approaches. Each option has similar scope but vary in terms of time and cost (i.e. faster implementation requires additional resource).

Deferred implementation

45        This option utilises the existing South Dunedin Future resource (personnel and budget), with a limited amount of work now, but design, establishment, and implementation of the climate resilience framework deferred until after the end of the SDF programme in December 2026.

46        Work that could commence from April 2025 would include a desk-top exercise to complete a stocktake of existing and planned activities in each of the four stages of the proposed climate change adaptation framework. Key elements of this stocktake could then be summarised into an interim climate adaptation plan for Dunedin. This interim plan would essentially be a snapshot of business-as-usual activities. The information in the interim plan would give a clearer view and better understanding of natural hazards, risk, adaptation planning and actions. This could enhance councils’ overall adaptation response (e.g. by informing infrastructure, land use planning, and investment decisions) and support some improved climate resilience.

47        Under this option, the interim plan could be delivered by 30 September 2025. However, design, establishment, and implementation of the citywide climate resilience framework would be deferred until existing resourcing could be freed up, potentially from 1 January 2027 following the delivery of the South Dunedin Adaptation Plan (and conclusion of the SDF programme). 

48        This option would capture business as usual work only, enabling some fine-tuning of existing processes, rather than a material enhancement of councils’ overall climate resilience work. There would be no engagement with the public or mana whenua until resourcing permitted, potentially from 1 January 2027.

Staged implementation

49        The staged implementation option would similarly involve an initial, desk-top exercise to complete a stocktake of existing or planned activities in each of the four stages of the proposed citywide climate resilience framework. Key elements of this stocktake would then be summarised into an interim climate adaptation plan for Dunedin. This interim plan would be a snapshot of business-as-usual activities, forming the basis for more detailed work to design, establish, and implement the new framework from 1 July 2025.

50        Under this option, the interim plan could be delivered by 30 June 2025. The design, establishment, and implementation of the citywide climate resilience framework could commence from 1 July with additional resourcing. A final adaptation plan could be delivered by 31 December 2026 (following implementation of each of the four stages of the framework).

51        This option would require additional resources during the 18-month period 1 July 2025 – 31 December 2026, to enable the design, establishment, and implementation of the framework. It would also require ongoing and periodic additional resourcing thereafter to operate the framework (e.g. six-yearly risk assessments, three-yearly plan updates, coordination of adaption planning work, etc).

52        The estimated additional resourcing required is $702,500 over two financial years (2025/26 – 2026/27), comprising personnel costs and operating expenditure. In 2027, existing South Dunedin Future resource (personnel and operating budget) could be transferred to continue implementation of the citywide climate resilience framework.

Accelerated implementation

53        The accelerated implementation option would involve a stocktake of existing or planned activities in each of the four stages of the proposed citywide climate adaptation framework supplemented by an initial ‘test-run’ of the framework cycle to develop a high-level risk assessment and risk screening, scope initial adaptation planning, and develop recommendations about key adaptation actions.

54        Key elements of the stocktake and test-run of the cycle would then be summarised into an initial climate adaptation plan for Dunedin by 30 June 2025. This initial plan would be a snapshot of business-as-usual activities but enhanced by the new insights and processes produced by the test-run. It would enable design, establishment, and implementation of the citywide climate resilience framework to commence from 1 July 2025.

55        This option would require additional resources during the 18-month period 1 January 2025 – 30 June 2026, to enable design, establishment, and implementation of the framework. A final climate adaptation plan would be delivered by 30 June 2026 (following implementation of each of the four stages of the framework). Further updates and refinements of the adaptation plan would occur as required, based on subsequent cycles of the framework.

56        The estimated additional resourcing required is $1.074 million over two financial years (2025/26 – 2026/27), comprising personnel costs and operating expenditure. In 2027, existing South Dunedin Future resource (personnel and operating budget) could be transferred to continue implementation of the citywide climate resilience framework.

OPTIONS

57        Three options are presented for implementing the proposed citywide climate adaptation framework and developing an adaptation plan for Dunedin. The scheduling of the options is illustrated in Attachment B.

Option One – Deferred Implementation

 

58        The deferred implementation option as described above involves a desk-top exercise now to complete a stocktake of existing and planned activities in each of the four stages of the proposed citywide climate resilience framework.

59        Implementation of this option requires no additional resource at this time, however, design, establishment and implementation of the citywide climate resilience framework is deferred until 1 January 2027. 

Advantages

·        Does not require any additional budget to be added to the 9-year plan.

·        Activities described in this option would inform DCC and ORC’s climate resilience-related work, enabling some enhancement of councils’ overall adaptation response, which could be built on at a later date (e.g. allow for an incremental approach).

Disadvantages

·        Benefits of adaptation planning and wider resilience work are delayed.

·        This approach does not allow for engagement with affected communities and mana whenua before 1 January 2027.

Impact on debt, rates, and zero carbon

·        This option would have no impact on debt or rates at this time, as all costs would be deferred or covered from within existing resources.

·        The expected impact of this option on both Dunedin’s city-wide greenhouse gas emissions and the DCC’s own emissions is negligible. There is potential for climate resilience actions resulting from the framework to both increase emissions (e.g. hard infrastructure) or reduce emissions (e.g. nature-based solutions), but that would not be determined until early 2028 during design of those actions.

Option Two – Staged Implementation

60        The staged implementation option described above involves a desk-top exercise now to complete a stocktake of existing or planned activities in each of the four stages of the proposed citywide climate resilience framework. Key elements of this stocktake would then be summarised into an interim climate adaptation plan for Dunedin.

Advantages

·        This option would allow for more substantive engagement sooner with affected communities and mana whenua, enabling some co-design of the framework, and integration of community engagement during implementation.

·        The staged implementation would enable the benefits to be realised over time, while balancing the scope, scale, and costs associated with the work.

Disadvantages

·        Requires additional operating budget ($702,500) to be added in financial years 25/26 and 26/27.

Impact on debt, rates, and zero carbon

·        This option would have no impact on debt, but additional rate funding of $702,500 would be required, split across financial years 25/26 and 26/27.

·        The expected impact of this option on both Dunedin’s city-wide greenhouse gas emissions and the DCC’s own emissions is negligible.

Option Three – Accelerated Implementation

61        The accelerated implementation option involves a stocktake of existing or planned activities in each of the four stages of the proposed citywide climate resilience framework supplemented by an initial ‘test-run’ of the framework cycle to develop a high-level risk assessment and risk screening, initial adaptation planning, and developing recommendations about key adaptation actions. Development of the framework, including engagement with mana whenua and the community begins immediately.

Advantages

·        Responds to concerns raised by Councillors about perceived delays to developing a citywide climate resilience framework.

·        A citywide climate resilience framework is developed and implemented sooner and represents the fastest manageable way to realise the benefits described in this report.  

·        Allows for accelerated engagement with affected communities and mana whenua, enabling co-design of the framework, and integration of community engagement in the transition and implementation.

Disadvantages

·        Requires $1.074 million to be added to the operating budget.

·        This option is the most expensive, prioritising time over cost, and would place the most pressure on existing resources.

Impact on debt, rates, and zero carbon

·        This option would have no impact on debt, but additional rate funding of $1.074 million would be required, split across financial years 24/25 and 25/26.

·        The expected impact of this option on both Dunedin’s city-wide greenhouse gas emissions and the DCC’s own emissions is negligible.

NEXT STEPS

62        Next steps will be determined by Council’s decision.

Signatories

Author:

Jonathan Rowe - Programme Manager, South Dunedin Future

Authoriser:

Scott MacLean - General Manager, Climate and City Growth

Attachments

 

Title

Page

a

Citywide Climate Resilience Framework - Summary Graphic

267

b

Citywide Climate Resilience Framework - Scheduling of Options

268

 


 

SUMMARY OF CONSIDERATIONS

 

Fit with purpose of Local Government

The cross-cutting nature of climate resilience and adaptation, and associated links to a wide range of council core business, means there would be close alignment with the purpose of local government, including (but not limited to):

·    Enabling democratic local decision making and action by, and on behalf of communities.

·    Promotes the social well-being of communities in the present and for the future.

·    Promoting the economic well-being of communities in the present and for the future.

·    Promoting the environmental well-being of communities in the present and for the future.

·    Promoting the 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

Future Development Strategy

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

 

The proposed citywide climate resilience framework would directly contribute to implementation of Dunedin’s Environment Strategy 2016-26, Te Ao Tūroa – The Natural World, by fulfilling the action described in the Strategy that relates to “developing and implementing a climate change adaptation plan and investigate options for areas affected or threatened by sea level rise”.

Māori Impact Statement

Accurately reflecting and integrating the principles of the Treaty of Waitangi, and Crown’s partnership with Māori, is proposed to be a central component of the citywide climate resilience framework. The scope of this is yet to be determined, about would be subject to engagement with mana whenua and Māori communities, as proposed in this report.

Sustainability

Sustainability will be a central component of the citywide climate resilience framework as it guides design and delivery of Dunedin’s response to the impacts of climate change over short-, medium- and long-term timeframes. The proposed design of the framework has a focus on sustainability, including by utilising existing systems, processes, and resourcing. More specifically, it is envisaged that the framework will seek to incorporate DCC’s Emissions Management and Reduction Plan 2022 and Zero Carbon Plan 2023.

Zero Carbon

There is potential for climate resilience actions resulting from the framework to both increase emissions (e.g. through creation of hard infrastructure) or reduce emissions (e.g. through nature-based solutions), but that could not be determined until adaptation planning identified the preferred interventions and those were then designed. Opportunities to reduce emissions could include factoring emissions into the assessment criteria for different climate adaptation options.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

Subject to Council decisions, staff will undertake further development of the framework and preferred approach to implementation, reflecting this work in advice and budgets for the long-term plan (2025-2033) presented to Councils in February 2025. Potential resourcing requirements are otherwise described in the report.

Financial considerations

No budget has been provided for in the 9 year plan for the development of a citywide climate resilience framework. Two of the options require additional resource to be added to the budget.

Significance

This issue is considered high in terms of the Council’s Significance and Engagement Policy. Community engagement will be a central element of the citywide climate adaptation framework, and engagement is factored into the assessment of options presented in the report.

Engagement – external

Development of the proposed citywide climate adaptation framework and drafting of this report has included engagement with staff across ORC commonly involved in climate adaptation work, including those actively involved in South Dunedin Future. Initial discussions have also occurred with Aukaha in relation to anticipated mana whenua interest and engagement in climate adaptation mahi.

Engagement - internal

Development of the proposed citywide climate adaptation framework and drafting of this report has included engagement with the following internal teams: City Development; 3 Waters; Transport; Parks & Recreation; Zero Carbon; Building Services.

Risks: Legal / Health and Safety etc.

Work is ongoing to identify and understand Council’s climate adaptation-related risks and potential mitigations.

Conflict of Interest

No conflict of interest have been identified.

Community Boards

Climate change, resilience, and adaptationare of interest to all Community Boards. Community Boards will be key contributors to the design and implementation of a citywide climate adaptation.

 

 


Council

28 January 2025

 



Council

28 January 2025

 



Council

28 January 2025

 

 

Centres Upgrade Programme

Department: City Development

 

 

 

 

EXECUTIVE SUMMARY

1          The purpose of this report is to describe the proposed centres upgrades and minor amenity improvements programmes that are used to deliver upgrades in Dunedin’s commercial centres.

RECOMMENDATIONS

That the Council:

a)         Approves option one, funding to focus on Minor Amenity Improvements initially, followed by the Centres Upgrade Programme, for public consultation on the 9 year plan 2025-34.

BACKGROUND

2          The Second Generation Dunedin City District Plan (2GP) describes Centres Zones as a range of different sized commercial centres that are spread throughout the urban area of Dunedin and within outlying towns of the wider district. Principal, suburban and rural centre zones provide hubs for social and economic activity for suburban and rural communities.

3          2GP also refers to Neighbourhood Centre zones, which provide for the day to day needs of individual neighbourhoods, with the Neighbourhood Destination Centre Zone also servicing visitor needs, and the Neighbourhood Convenience Centre Zone also servicing the needs of passing motorists.

4          The aim of the Centres Upgrade Programme is to ensure Dunedin’s Centres Zones are great places for their communities and local businesses, in terms of traffic safety, accessibility and amenity.

5          The Centres Upgrade Programme is to be delivered as:

a)         as programme of significant centres upgrades, and

b)        a supplementary programme of minor amenity improvements.

Attachment A lists individual centres under each of the proposed programmes. The grouping is based primarily on the scale, and therefore likely budget requirement, of the individual centre.

Centres Upgrade Programme

6          In 2010 City Development undertook a study and public engagement on the ‘activity centres’, as they were described at that time, in Dunedin (excluding the CBD). The purpose of the research was to provide data to inform the review of the District Plan, the identification and prioritisation of ‘activity centres’ upgrades projects, and the prioritised need for whole-of-council place-based strategies, together with a review of the Transportation Strategy. This work led to a revision of the zoning, zone boundaries and rules for activity centres as part of the 2GP and the development of a priority list of centres for upgrades.

7          In 2012 a programme for upgrading centres was proposed to the Planning and Environment Committee based on an evaluation of the current condition and issues and opportunities for each centre at that time. The evaluation was based on consultation that occurred concurrently with the consultation on the 2GP, a desktop analysis of existing data, a character study, summaries of LTP feedback and individual site visits. Each area was assessed against the following criteria:

·        how well the centre was fulfilling its agreed role and function

·        expected growth nearby including housing intensification

·        significant planned/actual investment by the private or public sector

·        importance to support agreed strategic direction

·        quality of the public environment

·        opportunity to influence and add value

·        significance of crime or safety issues

·        accessibility

·        transportation safety.

8          Council approved the first major project in this programme – a revitalisation plan for King Edward Street in South Dunedin.  A smaller centre upgrade of the St Clair (roundabout corner of Forbury Road) happened in 2017. The programming of the latter driven by a transportation safety upgrade for the intersection of Bedford Street, Forbury Road and Victoria Road.

9          The current Centres Upgrade Programme is proposed to focus supporting the economic and social role and function of centres.  By providing local access to services and amenities, supporting vibrant and successful centres is a key activity to achieve the compact city and accessibility strategic objectives of the Dunedin Future Development Strategy, Transportation Strategy and the Zero Carbon Plan.

10        The projects delivered under the Centres Upgrade Programme will take a holistic, place-based approach to include capital works delivered by the DCC as well as working with building owners and landowners to encourage and support upgrades to or use of buildings, redevelopment of vacant or underutilised sites in centres, or other ways to encourage and support activity in the centres (for example branding and events). Where centres include historic buildings, existing initiatives including the Dunedin Heritage Fund can be used to support building owners in upgrading, maintaining, and restoring these buildings so that they contribute positively to the streetscape and identity of the centre.

11        In terms of capital works these generally include minor or modest investment in upgrades that enhance streetscape amenity and where possible minor safety improvements. This may include footpath treatments, especially around pedestrian access crossing points and on corners, street trees, other landscaping and street furniture (planting, screening, seats, rubbish bins, cycle racks, bus shelters etc). Opportunities to better use open public places for a greater range of uses will be considered. Where possible, staff may also review public transport infrastructure (bus shelters and nearby curbing etc) and parking management to improve accessibility in centres.

12        Centres Upgrade Programme projects will also seek to maximise co-benefits with other DCC projects through linking budgets and timing with other transportation projects and underground infrastructure upgrades, along with any appropriate operational spend.

13        Centres Upgrade Programme projects will be tailored to the site-specific issues and opportunities in each location, with the scope of work varying depending on the size, geographical location, and strategic importance of the centre.

14        The Centres Upgrade Programme will employ lessons learned from the Warehouse Precinct upgrade which followed a similar holistic place-based approach and involved a similar range of activities.

15        The Centres Upgrade Programme will primarily be delivered internally, principally by the City Development, Advisory Services team.

Minor Amenity Improvements Projects

16        Minor Amenities Improvements projects deliver smaller amenity upgrades, to enable responses to needs outside of the Centres Upgrade Programme. Examples of Minor Amenities Improvements projects are upgrades to pocket parks, new seating areas, or adding landscaping as part of larger capital work projects.

17        Examples of recent projects in this category are listed below.

·        The CBD temporary parklet installation.

·        Two Mosgiel Pocket Parks – (Intersection of Larnark Street and Gordon Road, and Glasgow Street and Gordon Road).

·        Stuart Street planted median.

·        The temporary Octagon experience and new seating in the Octagon.

·        Design of the new roundabouts and new seating in Green Island.

·        New seating along Portsmouth Drive.

·        Installation of bespoke cycle stands in Crawford and Stafford Streets.

·        Installation of the Bee Garden in Great King Street.

DISCUSSION

18        Proposed funding is currently included in the draft 9-year plan budget for the Centres Upgrade Programme and for the Minor Amenities Improvements programme. The proposed funding is described in Option One.

 

 

in $’000

Year

2025/26

2026/27

2027/28

2028/29

2029/30

2030/31

2031/32

2032/33

2033/34

Option One: Starting with Small Centres

CUP

-

-

-

990

990

990

990

-

-

MAI

300

300

300

-

-

-

-

300

300

Total

300

300

300

990

990

990

990

300

300

Table 1: Proposed Budget 2025 -34 9 year plan (in $’000)

Note: Centres Upgrade Programme Budget (CUP), Minor Amenity Improvement Budget (MAI)

 

19        Given the reduction of central Government co-funding opportunities for the transport related upgrades, it is proposed to only have one budget line for the Centres Upgrade Programme sitting in the City Development department budget for both options.

20        The budget provides for a basic/modest level of upgrades to the streetscape. Upgrades are likely to include small areas of paving, pedestrian/accessibility improvements, street furniture, landscaping to improve amenity value.

21        Staff have previously engaged with Aukaha who indicated that a cultural narrative to guide the overall programme can be prepared in lieu of cultural narratives for each individual centre, this work has not been costed but will need to be factored into the overall cost of the programme. If there is an opportunity for murals in the centre, staff will engage with private building owners and Ara Toi.

22        Budget would generally not include public art. For upgrading, maintaining, and restoring historic buildings, existing initiatives and options included in the Heritage Action Plan (funding for implementation options are being presented in another report) are available to support owners.

23        The Centres Upgrade Programme would be delivered with input from both City Development and Transport departments and the individual Centres Upgrade Programme projects may still contain transport related upgrades, however, these are likely to be limited in scope and will usually only focus on improving pedestrian amenity and safety.

24        The options assume that all or most of the Minor Amenities Improvements budget will be allocated to spending in centres. The intent is these options would allow for minor upgrades in centres to be progressed in a timely way if they are urgent or to be undertaken alongside other private or public works happening in centres, without needing to wait for a centre to be programmed for a more substantial upgrade.

25        Ahead of the Centres Upgrade Programme being commenced, a report to Council or the Strategy, Planning and Engagement Committee would be prepared seeking a decision on delivery priorities. This report could be informed by an assessment similar to that undertaken in 2012. For all projects, the scope of the upgrade would be managed to the funding available, with the timeframe being able to be adjusted to achieve an appropriate quality of upgrade. That is, a single year’s budget may in some cases allow for more than one project and in other cases only part of a project.

26        Option one proposes to focus the first three years on only delivering Minor Amenity Improvement projects to minimise the cost of the programme in the first three years of the LTP period. This would likely allow for upgrades in up to three small centres.

27        The Centres Upgrade Programme, providing upgrades to larger centres, would then begin to be delivered in Year four of the 9-year plan allowing Council time to consult on priorities for delivering upgrades to larger centres, and to provide for upgrades to two larger centres over four years, with each project split over two years. 

28        In addition to the capex budget, additional operational budget is required to plan and deliver the Centres Upgrade Programme. To upgrade the larger centres, it is envisaged that a dedicated project manager would be required, and whilst this position is not currently included in the staff schedule utilising staff in other departments may be possible at that time. Periodic project support will also be needed for the smaller centres.

29        Where specific expertise is required i.e. input from a civil engineer, this may be procured within the capex budget, opting for a design and build contract, or utilising staff in other departments.

30        For years where only Minor Amenity Improvement projects are being developed and delivered, design and documentation work may be provided for from existing resourcing. Capacity could be impacted by other parts of the City Development work programme and if there is a further uptake in resource consent applications.

31        The proposed delivery of the Minor Amenity Improvements projects will take place on needs / benefit approach, with overall prioritisation requiring Council direction.

32        The Minor Amenity Improvement projects would include basic amenity upgrades, ie upgrading/ renewing street furniture, new landscaping) in small neighbourhood centres, main arterial routes, important/frequently used public spaces.

33        The Centres Upgrade Programme represents more substantial streetscape upgrades within larger centres and the selection of the centres to be upgraded and the order in which work is.

34        Operational costs associated with the maintenance of any capital works are not able to be determined until the design work is finalised. Therefore, an allowance of 2% of the capital cost would be sufficient for budgeting purposes.

OPTIONS

Option One – Funding to focus on minor improvements in small centres initially, followed by upgrades to large centres later in the 9-year plan period

 

35        Under this option, the focus for the first three years would be on delivering projects using the minor improvements budget. Upgrades to larger centres would be delivered from year four of the 9-year plan and would likely provide for upgrades to two larger centres over four years, with each project split over two years.  This option is included in the draft 9 year plan budget.

Impact assessment

Debt

36        Would require borrowing of $5.460 million to fund this option which is included in the draft capital budget as follows:

Year 1 25/26             $300,000

Year 2 26/27             $300,000

Year 3 27/28             $300,000

Year 4 28/29             $990,000

Year 5 29/30             $990,000

Year 6 30/31             $990,000

Year 7 31/32             $990,000

Year 8 32/33             $300,000

Year 9 33/34             $300,000

Rates

37        Rates funding for operating costs, interest and depreciation are included in the draft 9 year plan 2025-34 as follows:

Year

Interest

Depreciation

Operating Costs

Total Rates Impact

Year 1 2025/26

$6,000

$0,000

$6,000

$12,000

Year 2 2026/27

$19,000

$31,000

$6,000

$56,000

Year 3 2027/28

$31,000

$41,000

$6,000

$78,000

Year 4 2028/29

$57,000

$52,000

$20,000

$129,000

Year 5 2029/30

$119,000

$87,000

$20,000

$226,000

Year 6 2030/31

$169,000

$125,000

$20,000

$314,000

Year 7 2031/32

$218,000

$165,000

$20,000

$403,000

Year 8 2032/33

$251,000

$206,000

$6,000

$463,000

Year 9 2033/34

$266,000

$224,000

$6,000

$496,000

 

Zero Carbon

38        This option would contribute to the Zero Carbon Plan action areas ‘strengthen neighbourhood centres’ and ‘nurture low emissions urban form’ by encouraging and supporting activity in centres. This may result in longer-term emissions reduction in city-wide emissions. The Zero Carbon ‘High’ investment scenario (described in the Zero Carbon Investment Options report, under separate cover) includes an investment option for additional spend on transport elements, which would enable more substantial transport improvements, and greater emissions reduction benefits.

Advantages

·        The proposed programme enables planning and delivery phases of the overall programme to be refined with a series of smaller projects before commencing on a large project.

·        By starting with small centres, the financial investment will be reduced for the next three years, including delaying the need for a dedicated project manager (additional staff resource to a lesser extent is still needed).

Disadvantages

·        Centres that are prioritised later in the centres programme will have a significant period of time since their last upgrade and will likely have amenity infrastructure that is past an ideal point of renewal.

·        Lack of amenity in centres can make them less attractive for customers reducing economic activity and local spending on goods and services, particularly in smaller businesses that are more likely to be owner-operated.

·        Delaying spending will put financial pressure on future years as a more intensive programme will need to be delivered to address deferral.

·        Decline in residents’ satisfaction with look and feel of centres will continue.

Option Two – No Funding for Centres Upgrade or Minor Amenity programmes 

Under this option, both the Centres Upgrade Programme and Minor Amenity Improvement work programme are unfunded.  No work to improve the amenity of public places in suburban and rural centres would be undertaken over the period 2025/26 to 2033/34.

Impact assessment

Debt

39        Debt would reduce by $5.460 million across the 9 year plan as tabled in Option 1.

Rates

40        Rates funding would reduce across the 9 year plan due to less operating costs, depreciation and interest costs as projected in Option 1.

Zero Carbon

41        This option is unlikely to materially impact city emissions or DCC emissions, but it precludes longer-term emission reduction benefits from being realised.

Advantages

·        No financial investment required, and budget can be redirected to other areas of need.

Disadvantages

·        Many of the centres were last upgraded in the 1990s and would benefit greatly from amenity improvements. Delaying the Centres Upgrade Programme will increase the need to renew street furniture in the future as part of unplanned works due to failure.

·        Lack of amenity in centres can make them less attractive for customers reducing economic activity and local spending on goods and services, particularly in smaller businesses that are more likely to be owner operated.

NEXT STEPS

42        Should Council decide to proceed with the Centres Programme a report to Council or Committee will confirm the priority projects to be delivered in the first years of the programme.

Signatories

Author:

Mark Mawdsley - Team Leader Advisory Services

Dr Anna Johnson - City Development Manager

Authoriser:

David Ward - General Manager, 3 Waters and Transition

Attachments

 

Title

Page

a

Location of Centres and 2GP Zoning

279

 


 

SUMMARY OF CONSIDERATIONS

 

Fit with purpose of Local Government

This decision enables democratic local decision making and action by, and on behalf of communities.

This decision 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

Future Development Strategy

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

Māori Impact Statement

An overall cultural narrative for the Centres Upgrade Programme will be worked through with mana whenua. Additionally, any site-specific opportunities will be identified.

Sustainability

There will be a focus on sustainability as part of the project outcomes. Options of how to reduce the environmental impacts of the construction elements will be considered.

Zero carbon

 

The Zero Carbon Plan sets out the importance of strengthening neighbourhood centres and nurturing low emissions urban form, including by encouraging and supporting activity in centres. The options section in this report identifies how each option may impact DCC and city emissions.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report sets out three options for funding centres upgrades. These options have funding implications.

Financial considerations

Centres and minor amenity improvements are currently funded in the draft 9 year plan 2025-34.

Significance

The report is considered low in terms of the Council’s Significance and Engagement Policy.

Engagement – external

An engagement plan will be developed for each Centre if work progresses.

Engagement - internal

A cross departmental working group is in place to ensure there is internal engagement across all appropriate DCC departments, including City Development, Transport, and 3 Waters. 

Risks: Legal / Health and Safety etc.

There are no identified risks. A risk register will be developed for each of the respective component projects.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

The relevant Community Boards will be involved in relation to the individual centres. 

 

 


Council

28 January 2025

 



Council

28 January 2025

 

 

Ōtepoti Dunedin Heritage Action Plan: Implementation Options

Department: City Development

 

 

 

 

EXECUTIVE SUMMARY

1          The purpose of this report is to seek Council endorsement of a proposed pathway to deliver the Ōtepoti Dunedin Heritage Action Plan (HAP) Implementation Plan.

2          The Ōtepoti Dunedin Heritage Action Plan (HAP) was adopted by Council on 12 December 2023, replacing the 2007 Heritage Strategy. The initial, December 2023, Implementation Plan (Attachment A), containing 35 individual actions, was noted.  Councillors requested an additional 4 actions, making a total of 39 actions to be delivered. This report sets out a range of funding options to deliver on the HAP for Council to consider ahead of public consultation on the 9 year plan 2025-34.

RECOMMENDATIONS

That the Council:

a)         Decides a preferred option.

b)        Notes that any resource required for the preferred option will be added to draft budgets.

c)         Notes that staff will partner with mana whenua and external stakeholders in the delivery of the Ōtepoti Dunedin Heritage Action Plan (HAP) Implementation Plan

BACKGROUND

3          A Council resolution on 22 February 2023 (Attachment B) requested that staff develop a HAP to replace the 2007 Heritage Strategy.  The HAP was developed with input from the Heritage Action Plan Advisory Group (HAPAG) and engagement with mana whenua through the consultancy Aukaha. The resolution from the Strategy, Planning, and Engagement Committee meeting 19 June 2023 and the HAPAG Terms of Reference are attached (Attachments C and D respectively). A community and heritage building owner survey also informed the plan’s development.

4          The HAP and an initial Implementation Plan was presented to Council on 12 December 2023. The initial Implementation Plan contained 35 individual actions and a proposed Implementation Programme out to 2026/2027. It also indicated whether existing staff resources were adequate to undertake the actions, or if the resource required was to be determined.  The actions were a mix of actions to ‘investigate’ and actions to deliver.

5          Council resolved to adopt the HAP, subject to agreed amendments, and noted the initial Implementation Plan. The council resolution was:

Moved (Cr Sophie Barker/Cr Kevin Gilbert):

That the Council:

a)        Agrees the vision for the Ōtepoti Dunedin Heritage Action Plan was: “Ōtepoti Dunedin is a city that treasures its heritage as a living inheritance from its past and a legacy for future generations.”

b)        Adopts the Ōtepoti Dunedin Heritage Action Plan with the following amendments:

·        Inclusion of the vision;

·        Change Paragraph 4 on page 2 to “The mission for the Heritage Action Plan.”

·        Change Paragraph 8 to “The 2023 Heritage Action Plan envisages a city where historic buildings are conserved and restored, maintained and strengthened, re-used rather than replaced, valued by the community, and promoted as a defining characteristic of Ōtepoti Dunedin’s built environment”

·        Adds to Introduction paragraph 2 on page 4 “Ōtepoti Dunedin is considered Aotearoa New Zealand’s premier heritage destination”.

c)         Notes the draft Ōtepoti Dunedin Heritage Action Plan Implementation Plan.

d)        Requests staff to continue to engage with key stakeholders and investigate the following additions to the implementation plan:

·        The establishment of a Heritage Building Owners Forum to provide feedback and lobby on any built heritage issues.

·        Work to ensure that heritage tourism (including product and market development) is highlighted.

·        Consider options for a zero-carbon adaptive reuse policy.

·        Recognise and support the existing skills resource.

e)        Notes that staff will bring an updated draft Implementation Plan to Council in time for 10 year plan 2024-34 deliberations in May 2024.

f)         Notes that confirmation of a governance approach for oversight of the implementation of the Heritage Action Plan, will follow approval by Council of a governance framework.

Motion carried (CNL/2023/305)

DISCUSSION

6          The decision to delay the 10 year plan 2024-34 and instead prepare a 9 year plan in 2025 resulted in the HAP Implementation Plan work being put on hold to enable its integration with the long term plan process.  Since the adoption of the HAP in December 2023, work on delivering projects in the HAP has continued. The HAPAG met in July 2024 and identified actions from the initial Implementation Plan that they considered would deliver the most benefit to the city. Staff have used this input to review and refine the priority actions for implementation.

7          Progress has been made to date against a range of HAP Implementation Plan actions, including heritage assessments for 146 places that have been completed as part of Plan Change 1 to the partly operative Dunedin City Second Generation District Plan (2GP).  Work is also progressing on Plan Change 2 to the 2GP, which was initiated on 20 August 2024, and will include changes to some of the heritage provisions and provisions which manage the design of multi-unit development in the 2GP.

8          Indications are that it is unlikely that all the actions in the initial Implementation Plan presented in December 2023 scheduled to be delivered by the end of 2024/2025 will be achievable in that timeframe. This is due, in large part, to the time required to support work on Plan Change 1 (notified 20 November 2024) and Plan Change 2 being greater than anticipated. There has also been a greater than anticipated volume of work related to the Dunedin Heritage Fund (DHF) due to a higher number of applications, higher volumes of resource consent (and outline plan) applications and general enquiries from heritage building owners.

9          Some actions in the initial Implementation Plan were signalled as ‘resource requirement to be determined’. Now that work has commenced on the HAP there is a higher level of confidence as to what can be completed with existing resources, or where additional funding is required.

10        The HAP Implementation Plan and work programme for the first three years will be finalised after budget decisions are made on the 9 year plan in June 2025.

11        Three options are presented for advancing the HAP Implementation Plan – deferred, accelerated support for building owners, or accelerated support for building owners and other actions which require additional resource.

Deferred implementation

12        This option utilises the existing City Development Advisory Services resource staff and budget. Under this option, 13 of the actions could be significantly progressed by mid-2027, with key activities relating to supporting heritage building owners and actions that require consultancy support being deferred until mid-2027 onwards when additional funding can be considered. 

13        Actions which could be delivered by mid-2027 with existing resourcing include programmed work on additional scheduled heritage building in Plan Change 1 and changes to the heritage provisions as part of Plan Change 2. Other actions relating to the resource consent fee schedule, the prioritisation framework for future assessment of heritage buildings for scheduling and heritage input to other DCC strategies, plans and policies would also be delivered.

 

Accelerated implementation to support heritage building owners

14        This option, which accelerates support to heritage building owners, would require additional funding to appoint a Heritage Advisor for a two year period from 1 July 2025 to 30 June 2027. Under this option, 29 of the actions in the HAP Implementation Plan could be significantly progressed by mid-2027, with other actions being deferred until mid-2027 onwards when additional funding could be considered.

15        Actions that could be undertaken with the additional staff resource include:

a)         developing a 'heritage navigator' process for assisting heritage building owners

b)        developing plain English guidance for heritage building owners including practical case studies of completed conservation projects

c)         holding quarterly information sessions to assist heritage building owners

d)        establishing the ‘Heritage Building Owners Forum’; and

e)        investigating the feasibility and costs of actions that sit with either other DCC departments or external partners.

16        Note that a number of these actions, once developed and implemented, are ongoing and will require staff resource beyond mid-2027, if they are to continue.

Accelerated support for building owners and actions that require financial investment and support from external consultants

17        This option would require additional funding for a two year period from 1 July 2025 to 30 June 2027, to appoint a Heritage Advisor and add an additional $150,000 operating expenditure per year. Under this option, 39 actions (including the four included in the Council resolution) in the HAP Implementation Plan could be significantly progressed by mid-2027.

18        Actions that could be undertaken with this additional resource (over and above the actions listed in option 2) are:

f)         developing a public facing digital of historic places

g)         commissioning a report to identify and quantify the economic value of built heritage to Ōtepoti Dunedin

h)        consider additional financial tools, such as reduced development contributions, grants, non-rateable portions and rating differentials; and

i)          accelerating heritage assessments of places with potential heritage significance.

19        Note that a number of these actions, once developed and implemented, are ongoing and will require staff resource beyond mid-2027, if they are to continue.

Funding options (trade-offs)

20        To support advancing actions in the Heritage Action Plan monies could be diverted from the Dunedin Heritage Fund (DHF) to reduce or remove the impact on rates. The diverted funds would be used to fund the identified additional staff member, projects that require funding and/or to change the type of financial incentives that are provided.

21        The Dunedin City Council and Heritage New Zealand Pouhere Taonga jointly administer the DHF to support the protection and conservation of Dunedin’s built heritage. Council contributes $680,700 annually to the fund. The DHF is a contestable fund and owners of historic buildings are eligible to apply.

22        However, it is important to note that the DHF is typically oversubscribed, and recent funding rounds have received a higher-than-usual number of applications. Additionally, the 'value' of the Fund has decreased over time due to inflation and the sustained cost increases in the construction industry.

23        Furthermore, the recent 2GP plan change (Plan Change 1, notified on 20 November 2024) proposed the inclusion of additional heritage buildings. Owners of these buildings were informed that they could apply to the DHF, which is a key benefit for heritage protection. As a result, under the current eligibility and prioritisation criteria, grant values and the number of successful applicants will likely be reduced.

 

OPTIONS

Option One – Deferred Implementation

24        Under this option, staff would advance the initial Implementation Plan comprised of actions that could be progressed based on funding and resource which matches the 2024/25 budgets and resourcing. Under this option, 13 of the 39 actions would be progressed using existing resources and through partnership arrangements, whilst 26 would be deferred.

25        Implementation of this option requires no additional resource at this time; however, actions to support heritage building owners or which require consultancy support are deferred until mid- 2027 when additional funding could be considered.

26        The actions that could be progressed under this option in the short to medium term include:

a)         completion of programmed work on additional scheduled heritage building in Plan Change 1 through the submissions, hearings and appeals phase

b)        completion of work on Plan Change 2, which will include changes to the heritage provisions of the plan. This plan change is likely to be completed (decisions released) in 2026, although appeals could extend the timeframe of work required for this plan change

c)         reviewing the resource consent fee schedule to consider how fees for consent applications relating to scheduled heritage buildings can be offset

d)        completion of a prioritisation framework for future assessment by DCC of buildings that may meet the criteria for significance and develop a regular schedule of plan changes where a building owner (or others) can submit to have buildings added to the schedule, in which case the onus is on the submitter to provide the evidence to support the submission; and

e)        provision of heritage input to other DCC strategies, plans, and policies i.e. Zero Carbon Plan, Dangerous and Insanitary Buildings Policy.

Impact assessment

Debt

·        No debt funding is required for this option.

Rates

·        There are no impacts on rates.

Zero Carbon

·        This option is unlikely to materially impact city emissions or DCC emissions, but it precludes longer-term emission reduction benefits from being realised.

Advantages

·        Allows for completion of several priority actions underway.

Disadvantages

·        Does not enable the additional actions under the other options.

Option Two – Accelerated support for heritage building owners

27        Under this option, funding would be provided to appoint a Heritage Advisor for a two year period from 1 July 2025 to 30 June 2027, to accelerate support for heritage building owners. The additional actions that can be completed in the short to medium term with this resource include:

a)         a 'heritage navigator' process for assisting heritage building owners

b)        a plain English guidance for heritage building owners including practical case studies of completed conservation projects.

c)         quarterly information sessions to engage with and assist heritage building owners

d)        a ‘Heritage Building Owners Forum’ as requested in the resolution from Council (Dec 2023); and

e)        investigation of the feasibility and costs of actions that require significant input from either other DCC departments or external partners.

Impact assessment

Debt

·        No debt funding is required for this option.

Rates

·        Rate funding of 170k would be required to fund this option.

Zero carbon

·        This option would contribute to the Zero Carbon Plan action areas ‘strengthen neighbourhood centres’ and ‘nurture low emissions urban form’ by increasing retention and adaptive reuse of existing buildings. This may result in a longer-term reduction in city-wide emissions, however it has not been identified as a priority from an emissions reduction perspective (refer ‘Zero Carbon Investment Options’ report under separate cover).

Advantages

·        A smaller investment is required when compared with option three.

·        While overall progress will be delayed, actions that have the potential for higher impact will be progressed. This will demonstrate the Council’s commitment to the HAP and support the conservation of heritage buildings across the city.

Disadvantages

·        Requires additional operating budget ($85k) to be added in financial years 25/26 and 26/27.

·        Progress on the HAP Implementation Plan will be slower than the fully funded option.

Option Three – Accelerated support for building owners and actions that require financial investment and support from external consultants

28        Under this option, funding would be provided as per option two and $150,000 additional operating expenditure per year. The additional actions that can be completed in the short to medium term include:

a)         a public facing digital database of Ōtepoti Dunedin’s historic places

b)        a report identifying and quantifying the economic value of built heritage to Ōtepoti Dunedin

c)         additional financial tools, such as reduced development contributions, grants, non-rateable portions and rating differentials; and

d)        acceleration heritage assessments of places with potential heritage significance.

Impact assessment

Debt

·        No debt funding is required for this option.

Rates

·        Rate funding of $470k would be required to fund this option.

Zero Carbon

·        This option would contribute to the Zero Carbon Plan action areas ‘strengthen neighbourhood centres’ and ‘nurture low emissions urban form’ by increasing retention and adaptive reuse of existing buildings. This may result in longer-term reduction in city-wide emissions, however it has not been identified as a priority from an emissions reduction perspective (refer ‘Zero Carbon Investment Options’ report under separate cover).

Advantages

·        A higher investment option will demonstrate the Council’s commitment to the HAP and support the conservation of heritage buildings across the city.

·        Identification and protection of places with potential heritage significance will be accelerated. This will mitigate the risk of losing buildings valued by the community but without heritage protection.

Disadvantages

·        Requires additional operating budget ($235k) to be added in financial years 25/26 and 26/27.

·        This option is the most expensive, prioritising time over cost.

NEXT STEPS

29        Following the adoption of the 9 year plan 2025-34, staff will finalise the HAP Implementation Plan. The Implementation Plan will be structured to reflect the level of investment, actions that are unable to be progressed as a result of staff or financial constraints will be deferred for future LTP periods.

Signatories

Author:

Mark Mawdsley - Team Leader Advisory Services

Authoriser:

Dr Anna Johnson - City Development Manager

David Ward - General Manager, 3 Waters and Transition

Attachments

 

Title

Page

a

December 2023 Heritage Action Plan - Implementation Plan

291

b

Council minute extract 22 February 2023

297

c

Strategy Planning and Engagement Committee minute extract 19 June 2023

298

d

Heritage Action Plan Advisory Group Terms of Reference

299

 

 


 

SUMMARY OF CONSIDERATIONS

 

Fit with purpose of Local Government

This decision enables democratic local decision making and action by, and on behalf of communities.

This decision 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

Future Development Strategy

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

The Heritage Action Plan contributes to the strategic framework strategies noted above.

Māori Impact Statement

Investment in delivery of the HAP will deliver on the intended outcomes for Māori such as the visibility of Kai Tahu values in the built environment, co-design opportunities, telling of indigenous histories, and archaeology.

Sustainability

The aspiration to increase retention and adaptive reuse of existing buildings aligns with

Sustainability and zero carbon outcomes.

Zero carbon

The carbon impact of funding the delivery of the HAP will be explored once the level of investment has been determined through the 9 year plan 2025-34 process. The aspiration to increase retention and adaptive reuse of existing buildings aligns with zero carbon outcomes.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides investment options to implement the HAP, for public consultation on the 9 year plan 2025-34.

Financial considerations

This report provides three options for investing in implementation of the HAP.

Significance

This decision is considered medium in terms of the Council's Significance and Engagement Policy as the level of investment will impact on the delivery of actions in the HAP.

Engagement – external

The Heritage Action Plan Advisory group has been consulted on the priorities for delivering on the HAP.

Engagement - internal

There has been no internal engagement on this report.

Risks: Legal / Health and Safety etc.

There are no known risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Built heritage is important to many members of the community including those areas covered by

Community Boards.

 

 



Council

28 January 2025

 







Council

28 January 2025

 



Council

28 January 2025

 



Council

28 January 2025

 



Council

28 January 2025

 

 

Regulatory Services - Draft Operating Budget 9 year plan 2025-34

Department: Customer and Regulatory and Civic

 

 

 

 

EXECUTIVE SUMMARY

1          This report provides:

·        a summary of the services provided by Regulatory Services

·        an overview of the draft operating (opex) budget for year one of the 9 year plan for Regulatory Services

·        an overview of the variations from the year one budget for years two to nine for Regulatory Services.

2          This report includes five attachments:

i)          Operating budget for 2025/26 (year one) – this details the movements from the 2024/25 year

ii)         Operating budget for 2025/26 to 2033/34 (nine years) – this details the projected operating budget throughout the nine year period

iii)        Funding Impact Statement for 2025/26 to 2033/34 (nine years) – this summarises the source and application of funding throughout the nine year period

iv)       Schedule of Fees and Charges.

v)        Indicative charges for complete building consent applications 2025/26 (schedule B).

3          The report asks the Council to adopt the draft operating budget and draft fees and charges for the purposes of developing the 9 year plan 2025-34 and consulting with the community.

RECOMMENDATIONS

That the Council:

a)         Adopts for the purposes of developing the 9 year plan 2025-34 and consulting with the community

i)          The draft operating budgets and funding impact statement for Regulatory Services as shown/amended at Attachments A, B and C.

ii)         The draft 2025/26 fees and charges schedules for Regulatory Services as shown/amended at Attachment D.

BACKGROUND

Regulatory Services – summary of services

4          While the Regulatory Services teams are driven by various legislative requirements, education is also a key role.

5          Regulatory Services comprises the following activities:

·        Animal Services

·        Building Services

·        Environmental Health and Alcohol Licensing

·        Parking Services (enforcement), and

·        Resource Consents.

Animal Services

6          The Animal Services team is driven by the Dog Control Act 1996 and the Dog Control Bylaw which defines the roles for the team including the control of dogs and helping dog owners to meet their obligations. The team provides education sessions to schools and community groups about dog safety and helps with wandering stock and keeping of animals.

Building Services

7          Dunedin City Council through Building Services is an accredited Building Consent Authority (BCA) under the Building Act 2004. The Building Act 2004 has clearly defined roles for BCAs and territorial authorities. The Building Services team provides guidance, process and granting of building consents, it undertakes building inspections, and ensures compliance with the Building Act, Building Code and Regulations. The team also monitors and enforces standards of public health and safety relating to building warrant of fitness, illegal building work, dangerous, insanitary and affected buildings, drainage issues, fencing of residential swimming pools and earthquake-prone buildings. It provides building related information for property searches and Land Information Memoranda (LIM). A number of staff members are also rapid building assessors.

Environmental Health and Alcohol Licensing

8          The Environmental Health and Alcohol Licensing team is driven by the Food Act 2016, Health Act 1956, Sale and Supply of Alcohol Act 2012, and relevant bylaws. The team monitors and enforces public health standards, for example food premises, mobile traders, hairdressers, beauty therapists and alcohol licensing. It also responds to nuisance and noise complaints.

Parking Services (enforcement)

9          This team promotes desired parking behaviour and availability of parking spaces by enforcing parking legislation and regulations, for example relevant bylaws. It manages abandoned vehicles and monitors and enforces the commercial use of footpaths.

Resource Consents

10        The Resource Consents team is driven by the regulatory management of the Resource Management Act 1991 and the District Plan (2GP). It processes applications for resource consent, provides advice to the public and consultants, undertakes a planning check of building consent applications and completed HAIL (Hazardous Activities and Industries List) searches and input to LIM applications.

operating budgets – 2025/26

11        The 2025/26 draft operating budget for Regulatory Services is $22.404 million. This is an increase of $1.127 million from the 2024/25 year. The following sections explain the revenue and expenditure and any changes from the previous year.

12        Parking Services has increased operating expenditure compared to the 2024/25 year, as this includes the first year of the licence plate recognition (LPR) system for parking enforcement. The increase in costs is expected to be at least recovered from increased tickets issued from the new LPR system.

13        LPR is used to automatically read motor vehicle number plates with the use of fixed or mobile LPR cameras. The aim from 1 July 2025 is to have two vehicles mounted with LPR cameras. This is expected to deliver significant improvement to the health and safety of parking officers, to parking access in the city, as well as to enforcement efficiency and data reporting.

Revenue

Rates

14        Rates revenue is $6.046 million. This is an increase of $166k from the 2024/25 year. 

External revenue

15        Total external revenue is $15.930 million. This is an increase of $954k from the 2024/25 year. The increase comprises:

·        Animal Services $29k increase, in line with fee increases.

·        Building Services $96k increase, in line with fee increases.

·        Parking Services (Enforcement) revenue $734k increased, mainly due to $600k from increased Parking Infringement fees (from 1 October 2024) and $134k from a 10% increase in the number of tickets issued with the LPR system. The 10% increase is a conservative estimate.

·        Resource Consents $106k increase, in line with fee increases.

Expenditure

Personnel costs

16        Personnel costs are $13.344 million. This is an increase of $336k from the 2024/25 year.  An explanation of changes to personnel costs are discussed in detail in the Chief Executive Overview Report that is on the agenda.

Occupancy costs

17        Occupancy costs are $311k. This is an increase of $39k due to the increase in insurance premiums from the 2024/25 year.

Consumables and general

18        Consumables and general costs are $1.804 million. This is an increase of $528k from the 2024/25 year, due mainly to $506k from increased costs from Parking Services (enforcement) for:

·        Court Lodgements $278k (Ministry of Justice lodgement fee increased 83% from $26.08 to $47.83 per infringement from 1 October 2024).

·        Debt Collection agency fee of $50k not previously budgeted.

·        Licence plate recognition costs of $178k (software licence fees and charges $60k, postage $78k and one off $40k implementation cost.)

Internal charges

19        Internal charge costs are $6.140 million. This is an increase of $212k, 3.6%, due to increases in Business Information Services, Administration, Property and Fleet charges.

Budget tradeoffs

20        There have been no identified significant budget tradeoffs for the Regulatory activity. Any cost escalations have been managed through finding savings elsewhere within the activity budget, which has not materially changed the operating level of service.

fees and charges – 2025/26

21        A number of fees and charges within the Regulatory activity are set by legislation, such as alcohol licensing fees, and building infringement offences fees.

22        Fees and charges for Animal Services, Building Services, Environmental Health and Resource Consents have in the majority increased by 4%-7% to reflect increased costs.

23        Parking Services (Enforcement) fees are set by regulation by the Ministry of Transport.  Increases to parking infringement and towage fees came into effect on 1 October 2024.

OPERATING BUDGETS – YEARS 2-9

24        The 2025/26 operating budget has been inflation adjusted for years two to nine. Explanations of any further variations are explained below.

25        Provision has been made for the bi-annual compliance audits of $50k. Costs are included for the year one budget and occur every second year thereafter.

ZERO CARBON

26        The draft operating budget for Regulatory Services is unlikely to materially affect city or DCC emissions.

Signatories

Author:

Cazna Savell - Animal Services Team Leader

Kevin Mechen - Alcohol, Psychoactive Substances and Gambling Advisor

Authoriser:

Paul Henderson - General Manager Customer and Regulatory (Acting)

Attachments

 

Title

Page

a

Draft Operating Budget 2025/26 (year 1)

307

b

Draft Operating Budget 2025-34 (9 years)

308

c

Draft Funding Impact Statement 2028-34 (9 years)

309

d

Draft fees and charges 2025/26

310

e

Schedule B - building consents

322

 


 

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

Future Development Strategy

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

Regulatory Services activities contribute primarily to the objectives and priorities of the above strategies.

Māori Impact Statement

Council budgets impact broadly across all Dunedin communities including Māori. The adoption of Te Taki Haruru – Māori Strategic Framework signals Council’s commitment to mana whenua and to its obligations under the Treaty of Waitangi.  Mana whenua and Mataawaka will have the opportunity to engage in the 9 year plan consultation process.

Sustainability

Regulatory Services activities take into account the Council’s approach to sustainability.

Zero carbon

The draft operating budget for Regulatory Services is unlikely to materially affect city or DCC emissions.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides draft budgets for Regulatory Services to include in the 9 year plan.

Financial considerations

Financial considerations are detailed in this report.

Significance

The draft budgets are included in the development of the 9 year plan 2025-34, which is consulted on using the special consultative procedure.

Engagement – external

There has been no external engagement in developing the draft budgets for Regulatory Services.

Engagement - internal

Councillors and staff from across council have been involved in development of the draft budgets.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Project identified in Community Board plans have been considered in the development of the draft budgets. Community Boards will be consulted on the 9 year plan 2025-34.

 

 


Council

28 January 2025

 



Council

28 January 2025

 



Council

28 January 2025

 



Council

28 January 2025

 













Council

28 January 2025

 



Council

28 January 2025

 

 

Treaty Partnership - Draft Operating Budget 9 year plan 2025-34

Department: Corporate Policy

 

 

 

 

EXECUTIVE SUMMARY

1          This report provides:

·        a summary of the services provided by Treaty Partnership

·        an overview of the draft operating (opex) budget for year one of the 9 year plan for Treaty Partnership

·        an overview of the variations from the year one budget for years two to nine for Treaty Partnership.

2          This report includes three attachments:

i)          Operating budget for 2025/26 (year one) – this details the movements from the 2024/25 year

ii)         Operating budget for 2025/26 to 2033/34 (nine years) – this details the projected operating budget throughout the nine year period

iii)        Funding Impact Statement for 2025/26 to 2033/34 (nine years) – this summarises the source and application of funding throughout the nine year period

3          The report asks the Council to adopt the draft operating budget for the purposes of developing the 9 year plan 2025-34 and consulting with the community.

 

RECOMMENDATIONS

That the Council:

a)         Adopts for the purposes of developing the 9 year plan 2025-34 and consulting with the community

i)          The draft operating budgets and funding impact statement for Treaty Partnership as shown/amended at Attachments A, B and C.

 

BACKGROUND

Treaty Partnership – summary of services

4          The Treaty Partnership team is dedicated to fulfilling legislative responsibilities and building strong partnerships with mana whenua and the Māori community. Through the implementation of Te Taki Haruru (Council’s Māori Strategic Framework) and enhanced cultural capability within Council, the team drives outcomes that benefit both Māori and the wider community.

5          Treaty Partnership operated through three key workstreams:

a)         Tū Kotahi –This programme helps DCC staff to understand the Treaty’s application in applies in Ōtepoti Dunedin and local government context. It is primarily delivered by staff with contractors facilitating the two introductory workshops.

b)        Tū Ake –This workstream supports staff in integrating Te Taki Haruru into daily operations. It ensures that strategies, policies, and plans—whether new or under review—are guided by Te Taki Haruru and include measurable success indicators.

c)         Tū Hono – This supplementary programme provides DCC staff with resources and guidance for engaging effectively with mana whenua. It enhances staff confidence in knowing when and how to engage directly with mana whenua.

operating budgets – 2025/26

6          The 2025/26 draft operating budget for Treaty Partnership is $910k. This is a decrease of $83k from the 2024/25 year. The following sections explain the revenue and expenditure changes from the previous year.

Revenue

Rates

7          Rates revenue is $910k. This is an increase of $338k from the 2024/25 year due to removal of Better Off Funding in 2025/26.

Internal revenue

8          Total internal revenue is $nil, a reduction of $421k due to removal of Better Off Funding.

Expenditure

Personnel costs

9          Personnel costs are $475K.  This is an increase of $67k from the 2024/25 year.  An explanation of changes to personnel costs are discussed in detail in the Chief Executive Overview Report that is on the agenda.

Operations and maintenance

10        Operations and maintenance expenditure is $250k for the Service Level Agreement (SLA) with Aukaha recategorised from grants and subsidies cost.

Consumables and general

11        Consumables and general costs are $101k. This is a decrease of $141k from the 2024/25 year for Better Off funded consultants’ costs.

Grants and subsidies

12        Grants and subsidy costs are $79k. This is a decrease of the $250k because the Aukaha SLA has been recategorised to operations and maintenance costs. The $79k budget is for three annual grants of $26.3k to support the local marae capacity to engage with the community:

·       Kati Huirapa Runanga

·       Te Runanga o Otakou

·       Araiteuru Marae Council Inc

Budget tradeoffs

13        There have been no identified significant budget tradeoffs for the Treaty Partnerships activity. Any cost escalations have been managed through finding savings elsewhere within the activity budget, which has not materially changed the operating level of service.

fees and charges – 2025/26

14        There are no fees and charges for this activity.

OPERATING BUDGETS – YEARS 2-9

15        The 2025/26 operating budget has been inflation adjusted for years two to nine.

ZERO CARBON

16        The draft operating budget for this group is unlikely to materially affect city or DCC emissions.

Signatories

Author:

Nadia Wesley-Smith - Corporate Policy Manager - Acting

Authoriser:

Nicola Morand - Manahautū (General Manager Policy and Partnerships)

Attachments

 

Title

Page

a

Draft Operating Budget 2025/26 (year 1)

329

b

Operating budget for year 2 - 9

330

c

Funding Impact Statement 2025-34

331

 


 

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

Future Development Strategy

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

Treaty Partnership activities contribute to the objectives and priorities of the above strategies.

Māori Impact Statement

Council budgets impact broadly across all Dunedin communities including Māori. The adoption of Te Taki Haruru – Māori Strategic Framework signals Council’s commitment to mana whenua and to its obligations under the Treaty of Waitangi.  Mana whenua and Mataawaka will have the opportunity to engage in the 9 year plan consultation process.

Sustainability

Treaty Partnership activities take into account the Council’s approach to sustainability.

Zero carbon

The draft operating budget for this group is unlikely to materially affect city or DCC emissions.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides draft budgets for Treaty Partnership to include in the 9 year plan.

Financial considerations

Financial considerations are detailed in this report.

Significance

The draft budgets are included in the development of the 9 year plan 2025-34, which is consulted on using the special consultative procedure.

Engagement – external

There has been no external engagement in developing the draft budgets for Treaty Partnership.

Engagement - internal

Councillors and staff from across council have been involved in development of the draft budgets.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Project identified in Community Board plans have been considered in the development of the draft budgets. Community Boards will be consulted on the 9 year plan 2025-34.

 

 


Council

28 January 2025

 



Council

28 January 2025

 



Council

28 January 2025

 



Council

28 January 2025

 

 

Grants Review Update

Department: Civic

 

 

 

 

EXECUTIVE SUMMARY

1          A review of grants is currently being undertaken by the Grants Review Group (the Review Group) as part of the 9 year plan.  The purpose of this report is to provide an update of the work being undertaken by the Review Group. 

2          The report discusses the following:

·    Setting a strategic direction for future grants, including identifying the outcomes that Council wants to achieve through the provision of grants funding,

·    Annual Plan and Long Term Plan funding requests

·    Grants subcommittee and Dunedin Heritage Fund considerations, and

·    9 year plan grant funding considerations.

3          As the work of the Review Group is still in progress, the report makes recommendations on the process for including grants funding in the 9 year plan, including “ring fencing” the quantum of grants funding to that provided for in the 2024/25 Annual Plan. 

 

RECOMMENDATIONS

That the Council:

a)         Agrees that the draft budgets for grants, excluding the grant to Tūhura Otago Museum, is ringfenced, to the amount of grants funding that was provided for in the 2024/25 Annual Plan.  

b)        Agrees that the unallocated funding of $272,000 be available for funding requests that may come through the submission process on the 9 year plan 2025-34. 

 

BACKGROUND

4          In 2023, a request was made by Council to undertake a review of grants, to support the preparation of the 10 year plan 2024-34.  A Grants Workstream was established to undertake the review.

5          In September 2023, a report was presented to Council that provided an overview of the DCC grant categories, budgets, and expenditure.  The report identified the need for more work to be undertaken to look at and understand grants from across all of Council.  It also noted that the DCC’s Grants Management Policy was due to be reviewed in 2024.

6          At its meeting on 27 February 2024, Council decided to proceed with an Annual Plan 2024/25, followed by a 9 year plan 2025-34 (9 year plan). 

7          A report was presented to the 12 March 2024 Council meeting, providing an update of the work completed by the Grants Workstream.  The report noted that the next steps included the need to define the grant review process to complete