Agenda of Council - Tuesday, 11 February 2025

Council

11 February 2025

Reports

Significant Forecasting Assumptions - Update

Department: Civic

EXECUTIVE SUMMARY

1 The purpose of this report is to seek Council approval for significant forecasting assumptions for 3 waters, levels of service and future legislative changes, that are to be used in the development of the 9 year plan 2025-34 (the 9 year plan).

2 An update of the City and DCC emissions reduction targets assumption is also provided for approval, following decisions made at the 28 January 2025 Council meeting.

3 A copy of the new and updated Significant Forecasting Assumptions is at Attachment A.

RECOMMENDATIONS

That the Council:

a) Approves the significant forecasting assumptions at Attachment A, to be used in the development of the 9 year plan 2025-34.

BACKGROUND

4 To date, four reports have been presented to Council and the Strategy, Planning and Engagement Committee, seeking approval of significant forecasting assumptions to be used in the development of the 9 year plan as follows:

· Growth and economic projections - Strategy, Planning and Engagement Committee meeting on 16 October 2024

· Climate change projections – Council meeting on 25 November 2024

· Financial assumptions – Council meeting on 10 December 2024

· NZTA Waka Kotahi funding rates update – Council meeting of 28 January 2025.

5 At its meeting on 28 January 2025, Council considered a report that presented zero carbon high and medium investment packages, that would support carbon emissions reduction. A decision was made to not include either the proposed high or medium Zero Carbon investment package options in the draft 9 year plan. Following this decision, an update to the City and DCC emissions reduction targets assumption is now required.

DISCUSSION

6 The remaining assumptions to be approved relate to three waters, future legislative changes, and levels of service. An update of the City and DCC emissions reduction targets is also provided for approval.

3 Waters

7 As part of the process of developing a Water Services Delivery Plan, at its meeting on 28 February 2025, Council will consider a report that looks at various options for how it may want to deliver water services. At that meeting it will decide what its preferred option will be, and following that decision, consultation on potential models for delivering water services will be undertaken.

8 The consultation document for the 9 year plan will be updated to provide information on Council’s preferred option.

9 The final Water Services Delivery Plan is to be submitted to the Secretary for Local Government for approval by September 2025, when a final decision will be made on how water services will be delivered.

10 For the purposes of preparing the draft 9 year plan, an assumption has been made that the DCC will deliver 3 waters services over the life of the 9 year plan, as at this time, no decisions have been made on what the delivery model should be.

Future legislative changes

11 Changes to legislation have been signalled by central government, including development of new fast track Resource Management Act 1991 (RMA) consenting legislation and replacing the RMA, significant reforms in the building industry, and changes to the Local Government Act 2002 in terms of the purpose of Local Government.

12 For the purposes of preparing the draft 9 year plan, it is assumed that reform will impact on the DCC’s activities.

Levels of service

13 It is assumed that levels of service will be maintained, unless otherwise stated, over the life of the 9 year plan.

City and DCC emissions reduction targets

14 Following the decision by Council to not invest in either the high or medium Zero Carbon investment package options proposed at the meeting of 28 January 2025, the significant forecasting assumption has been amended. It is now assumed that it will be unlikely that the emission reduction targets for 2030 for Dunedin City will be met through the DCC’s 9 year plan actions or those of other stakeholders.

15 The assumption that the DCC will meet its organisational targets, including through adherence to its Emissions Management and Reduction Plan and Zero Carbon Policy remains unchanged.

OPTIONS

16 Council is required under the Local Government Act 2002 to have significant forecasting assumptions as part of the 9 year plan. Options have not been presented but Council may decide to modify the significant forecasting assumptions.

NEXT STEPS

17 The Significant Forecasting Assumptions, with any amendment, will be used in the development of the 9 year plan.

Signatories

Author:	Sharon Bodeker - Special Projects Manager
Authoriser:	Carolyn Allan - Chief Financial Officer

Attachments

	Title	Page
⇩a	New and Updated Significant Forecasting Assumptions	22

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 wellbeing of the Dunedin 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 9 year plan contributes to all of the objectives and priorities of the strategic framework as it describes the Council’s activities, the community outcomes, and provides a long term focus for decision making and coordination of the Council’s resources, as well as a basis for community accountability

Māori Impact Statement

The adoption of the Māori Strategic Framework signals Council’s commitment to mana whenua and to its obligations under the Treaty of Waitangi. Mana whenua and Māori will have an opportunity to engage with the 9 year plan consultation process.

Sustainability

Major issues and implications for sustainability are discussed and considered in the Infrastructure Strategy and financial resilience is discussed in the Financial Strategy.

Zero carbon

Assumptions for Zero Carbon are discussed in this report.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report provides details of the assumptions being made to assist the development of the 9 year plan.

Financial considerations

Financial assumptions are provided in the report.

Significance

The 9 year plan is significant and will be consulted on using the Special Consultative Procedure.

Engagement – external

There has been no external engagement in the preparation of the draft assumptions.

Engagement - internal

Staff from across Council are involved in the development of the 9 year plan.

Risks: Legal / Health and Safety etc.

The level of uncertainty for each of the assumptions made, and the effect of the uncertainty is included in the report.

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

11 February 2025

Draft Consultation Document for the 9 year plan 2025-34

Department: Civic

EXECUTIVE SUMMARY

1 A draft consultation document has been prepared for consultation on the 9 year plan 2025-34 (9 year plan). It explains the Council’s proposals for the 9 year plan, in plain English, and is based on the decisions made by Council at its meeting on 28 – 30 January 2025. A copy of the draft consultation document is at Attachment A.

2 The draft consultation document has been submitted to Audit New Zealand (Audit NZ), who is currently auditing it and its supporting documentation. Audit NZ will provide Council with an ‘Independent Auditor’s report’ on completion of the audit, scheduled for mid-March 2025.

RECOMMENDATIONS

That the Council:

a) Notes the draft Consultation Document.

BACKGROUND

3 The Council is required under the Local Government Act 2002 to have a consultation document, to support community engagement and participation in the Council’s decision-making processes relating to the content of the 9 year plan.

DISCUSSION

4 The draft consultation document explains the Council’s proposals for the 9 year plan in plain English. Its content is based on the decisions made at the Council meetings on 28-30 January 2025, and on the legislative requirements provided for in the Local Government Act 2002.

5 Following Council’s direction, the draft consultation document contains more fulsome information than in previous years, together with additional supporting material online for those who want it. The graphic design on this document will be a relatively light touch, but will be well laid out. A copy of the designed cover is at Attachments B, and Attachment C shows an example page.

6 At its meeting on 25 February 2025, Council will consider a report on options for the future delivery of water, and make a decision on its preferred option. Following that meeting, the draft consultation document will be amended to provide an update on the decisions made.

7 The draft consultation document asks for feedback on two specific questions, one on the removal of 231 Stuart Street from the list of strategic assets in the Significance and Engagement Policy, and one about introducing an entry charge for international visitors at Toitū Museum and the Dunedin Public Art Gallery.

8 A question on a proposal to sell 231 Stuart Street has not been included in the draft consultation document. Inclusion of this question was confusing alongside the question of removing this property from the list of strategic assets. If the property is removed from the list of strategic assets, Council will have the ability, to decide in the future, whether to sell this property.

9 Audit NZ is auditing the draft consultation document and the 9 year plan supporting documents for legislative compliance. Feedback will be received from the Office of the Auditor General (OAG) and Audit NZ by early March 2025.

10 If changes to the consultation document are recommended by the OAG or Audit NZ, these will be incorporated into the document prior to adoption of the consultation document, scheduled for 18 March 2025.

11 An ‘Independent Auditor’s Report’ will be included in the final consultation document.

OPTIONS

12 There are no options.

NEXT STEPS

13 The draft consultation document will be updated as required, prior to its adoption on 18 March 2025.

Signatories

Author:	Sharon Bodeker - Special Projects Manager
Authoriser:	Carolyn Allan - Chief Financial Officer

Attachments

	Title	Page
⇩a	Draft Consultation Document	29
⇩b	Cover for draft Consultation Document	80
⇩c	Example content page in draft Consultation Document	81

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	✔	☐	☐

The consultation document contains content that contributes to the objectives and priorities across all areas of the strategic framework.

Māori Impact Statement

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 Māori will have an opportunity to engage on the 9 year plan.

Sustainability

Major issues and implications for sustainability are discussed in the consultation document, specifically in the responding to climate change and reducing our waste sections of the document. The consultation process also focuses on how consultation can be delivered more sustainably.

Zero carbon

Zero carbon is discussed in the draft consultation document.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report notes the draft consultation document for the 9 year plan.

Financial considerations

Financial considerations are discussed in the draft consultation document.

Significance

The consultation document will be used for the special consultative procedure for the 9 year plan.

Engagement – external

There will be extensive external engagement on the 9 year plan.

Engagement - internal

Councillors and staff have been involved in the development of the 9 year plan and consultation document.

Risks: Legal / Health and Safety etc.

There are no known risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

Community Boards will have an opportunity to participate during the consultation and submission phases of the process.

Council

11 February 2025

Development Contributions Policy Update

Department: Civic

EXECUTIVE SUMMARY

1 This report provides an updated draft Development Contributions Policy (the draft Policy) for consideration by Council. It incorporates the growth-related capital expenditure provided for in the 9 year plan 2025-2034 (9 year plan) and the current growth projections for the city.

2 A number of changes to the current Policy are proposed, and the associated schedule of charges. Changes include introducing retirement villages and aged care facilities as new categories of development and providing the ability to charge interest and annually inflation adjust the charges. A copy of the draft Policy with tracked changes is at Attachment A. Attachment B provides a clean copy of the draft Policy.

3 Information about the draft Policy will be included in the 9 year plan consultation document, and the draft policy will be provided in full as supporting documentation on the Council’s website.

RECOMMENDATIONS

That the Council:

a) Approves the draft Development Contributions Policy (with any amendments) for the purposes of consultation as part of the 9 year plan 2025-34.

b) Notes that the final Development Contributions Policy will be considered as part of the 9 year plan deliberations.

BACKGROUND

4 Section 197AA of the Local Government Act 2002 sets out the purpose of development contributions as:

“The purpose of the development contribution provisions in this Act is to enable territorial authorities to recover from those persons undertaking development a fair, equitable, and proportionate portion of the total cost of capital expenditure necessary to service growth over the long term”.

5 Development contributions are used to fund growth related infrastructure. The contribution is a one-off charge payable by developers. The subsequent operation and maintenance of such infrastructure is funded by the DCC through rates and other charges.

6 The following are examples of the types of infrastructure that can be funded through development contributions:

· Water Supply – treatment stations, reservoirs, bulk main watermains, strategic pipe upsizes.

· Wastewater – treatment plant, pump stations and upgrades.

· Stormwater – ponds, erosion control, overland flow management and pipes.

· Reserves – local parks, sports fields, playgrounds and park improvements.

· Transport – major and minor arterials, bridges and road upgrades.

· Community Infrastructure – pools, libraries, museums and public toilets.

Development Contribution Policy

7 The Local Government Act 2002 (the Act) requires that a Development Contributions Policy is reviewed at least once every 3 years, using a consultation process that gives effect to the Act’s requirements for consultation. It also sets out the contents required in the Policy.

8 The DCC last adopted a development contributions policy as part of the 10 year plan 2021-31. The Water Services Acts Repeal Act 2024 provided transitional options for local authorities who chose to complete an Annual Plan 2024/25 instead of a 10 year plan 2024-34. The provisions allowed Council to extend the life of the Development Contribution Policy to 30 June 2025, and Council resolved to do this at its meeting on 27 February 2024.

9 The current Policy requires development contributions for water, wastewater, stormwater, transportation, reserves and community infrastructure in certain defined geographical ‘areas of benefit’ calculated according to the size and type of development.

DISCUSSION

10 The current Policy has been reviewed, and a draft Policy prepared proposing several changes, for consultation purposes. The draft Policy has been legally reviewed to ensure compliance with the Act. The key changes are discussed below. Other changes proposed in the draft policy are primarily amendments to provide clarity.

Development Contribution Charges

11 An updated schedule of development contribution charges is included in the draft Policy. These have been calculated based on the 9 year plan capital expenditure programme, apportioned to growth. The charges have been calculated for specific geographical areas as appropriate.

12 Significant increases in charging are proposed for some areas, based on the level of growth expenditure planned for those areas. The table below shows the proposed charges compared to current charges for each area.

Table 1 – Proposed charges

	2025-34 Draft Policy $	2021-31 Policy $	$ Change	% Change
Water Supply
Dunedin Central Brownfields	7,380	3,160	4,220	134%
Dunedin Central Greenfields	9,120	3,900	5,220	134%
Outram, Waitati, Warrington, Seacliff, Merton	7,380	3,160	4,220	134%
Waikouaiti and Karitane	15,220	1,450	13,770	950%
West Taieri	10,820	9,980	840	8%
Wastewater
Dunedin Central Brownfields	8,410	3,980	4,430	111%
Dunedin Central Greenfields	10,380	5,120	5,260	103%
Warrington	20,210	9,540	10,760	114%
Seacliff	20,210	3,550	16,660	469%
Karitane, Waikouaiti	20,210	1,450	18,760	1,294%
Middlemarch	45,030	8,970	36,060	402%
Stormwater
Dunedin Central Brownfields	2,540	2,620	(80)	(3%)
Dunedin Central Greenfields	2,540	2,620	(80)	(3%)
All other Dunedin Metropolitan properties	2,540	2,620	(80)	(3%)
Transportation
Allanton	2,760	1,760	1,000	57%
Dunedin Central Brownfields	2,760	1,760	1,000	57%
Dunedin Central Greenfields	2,760	1,760	1,000	57%
Outram	2,760	1,760	1,000	57%
Waitati, Warrington, Seacliff, Merton, Waikouaiti, Karitane, Middlemarch, Rockland Rural and West Taieri	2,080	1,620	460	28%
All other Dunedin Metropolitan properties	2,760	1,760	1,000	57%
All other Dunedin other properties	2,080	1,620	460	28%
Reserves
Allanton	550	1,010	(460)	(46%)
Dunedin Central Brownfields	550	1,010	(460)	(46%)
Dunedin Central Greenfields	550	1,010	(460)	(46%)
Outram	550	1,010	(460)	(46%)
Waitati, Warrington, Seacliff, Merton, Waikouaiti, Karitane, Middlemarch, Rockland Rural and West Taieri	160	200	(40)	(20%)
All other Dunedin Metropolitan properties	550	1,010	(460)	(46%)
All other Dunedin other properties	160	200	(40)	(20%)
Community Infrastructure
Allanton	1,820	1,130	690	61%
Dunedin Central Brownfields	1,820	1,130	690	61%
Dunedin Central Greenfields	1,820	1,130	690	61%
Outram	1,820	1,130	690	61%
Waitati, Warrington, Seacliff, Merton, Waikouaiti, Karitane, Middlemarch, Rockland Rural and West Taieri	630	220	410	186%
All other Dunedin Metropolitan properties	1,820	1,130	690	61%
All other Dunedin other properties	630	220	410	186%

13 Council may wish to consider setting a cap on certain charges, that would limit the development contribution charge for specific infrastructure types. Setting caps would mean that development contributions would not cover the full cost of growth in areas that are more expensive to service with infrastructure.

Retirement Housing and Aged Care Facilities

14 Prior to its adoption on 31 May 2021, the current Policy was consulted on as part of the 10 year plan 2021-31 process. At that time Council received four submissions on the policy.

15 A submission was received from Summerset that raised concerns around the calculation of equivalent household units (EHUs) for retirement villages. At that time, it was noted that the matters raised by Summerset would be considered as part of the next policy review, but in the interim, this type of development would be treated as an unusual development.

16 The matter of including retirement villages and aged care facilities has been considered and advice has been sought from Rationale. That advice considered the reduced infrastructure demands associated with retirement villages and aged care facilities, along with a review of 13 other councils around New Zealand and their basis for charging development contributions.

17 Of the 13 councils reviewed, along with retirement villages, five had separate charges for aged care facilities.

18 Table 2 below shows for the 13 councils (10 for stormwater), the median and the average of their equivalent household unit conversion factors for retirement villages, along with the factors proposed to be included in the draft Policy.

Table 2 – Retirement Villages

	Water	Waste water	Storm water*	Transport	Reserves	Community Infra
Median	0.5	0.5	0.5	0.5	0.5	0.5
Average	0.5	0.5	0.46	0.42	0.39	0.41
Proposed	0.5	0.5	ISA*	0.5	0.5	0.5

* ISA – Impermeable surface area.

19 Stormwater factors for three of the 13 councils are not provided. We are aware that one council uses ISA to calculate the stormwater development contribution. The Policy defines the ISA (impermeable surface area) as:

“The sum of the roof area of buildings on a site and the area of hard surfaces used for driveways, parking or manoeuvring. A hard surface is a surface through which water cannot pass and examples include concrete, asphalt, chip seal and impermeable/impervious/non-porous paving stones. For the Rural Residential land use category, only the roof area of dwellings shall be counted as impermeable surface area.”

20 Table 3 below shows for five councils (three for stormwater), the median and the average of their conversion factors for aged care facilities, along with the factors proposed to be included in the draft Policy.

Table 3 – Aged Care Facilities

	Water	Waste water	Storm water*	Transport	Reserves	Community Infra
Median	0.45	0.45	0.5	0.2	0.28	0.15
Average	0.45	0.45	0.47	0.23	0.28	0.22
Proposed	0.45	0.45	ISA	0.2	0.28	0.15

21 Stormwater factors for two of the five councils are not provided. We are aware that one council uses ISA to calculate the stormwater development contribution.

22 It is recommended that retirement villages and aged care facilities be included in the draft Policy as a separate land use category for charging development contributions. Council may wish to amend the proposed equivalent household units shown in tables 2 and 3 above.

Inflation adjustments

23 Development contribution charges that were set at the time of adopting the current Policy in 2021 remain unchanged during the life of that Policy, i.e., the charges will be in place for four years with no adjustment.

24 The draft Policy provides that the charges may be inflation adjusted annually, in line with the Producers Price Index Outputs for Construction. The adjusted charges will be published on the Council’s website at the start of each financial year.

25 The draft Policy also provides a new clause that if the time between the initial development contribution assessment, and the time that Council would normally invoice for the development contribution exceeds 24 months, then Council will apply the inflation adjustment to the originally assessed charge.

Special assessments

26 This section in the draft Policy replaces the “Unusual Developments” section in the current Policy, effectively renaming this section and providing more clarity. It covers situations where developments may require a special level of service or are of a type or scale that is not readily assessed in terms of the identified “equivalent household units” for each land use category in the draft Policy. In these situations, Council may decide to make a special assessment of the equivalent household units for charging development contributions.

OPTIONS

27 Council is required to have a Development Contribution Policy for consultation as part of the 9 year plan. Options have not been presented but Council is able to modify the draft Policy.

NEXT STEPS

28 The draft Policy, with any amendment will be finalised for public consultation as part of the supporting documentation for the 9 year plan.

29 Key elements of the Development Contribution Policy will be incorporated into the Consultation Document.

Signatories

Author:	Sharon Bodeker - Special Projects Manager
Authoriser:	Carolyn Allan - Chief Financial Officer

Attachments

	Title	Page
⇩a	Draft DC Policy with track changes	91
⇩b	Draft DC Policy	134

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

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

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 Development Contributions Policy supports the infrastructure related strategies by providing a mechanism to fund infrastructure related growth costs.

Māori Impact Statement

There are no specific impacts for mana whenua and Māori. However, mana whenua and Māori will be involved in engagement as part of the 9 year plan consultation process.

Sustainability

Funding growth infrastructure through development contributions creates a mechanism for development to occur in an efficient and cost-effective way.

Zero carbon

There are no zero carbon impacts in terms of the Development Contributions Policy.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

The Local Government Act 2002 (LGA) requires that a Development Contributions Policy is reviewed in a way that gives effect to the principles of community engagement. It is considered good practice for such policies to be reviewed in the context of a 10 year plan, given their relationship to decisions around capital expenditure, and the opportunity for community engagement.

Financial considerations

Development contributions aim to fund planned growth.

Significance

The draft policy will be consulted on via the 9 year plan, using the special consultative procedure.

Engagement – external

Engagement will occur through the 9 year plan consultation, including targeted consultation with developers.

Engagement - internal

Staff from across council have been involved in the review.

Risks: Legal / Health and Safety etc.

By adopting the draft Policy for consultation, Council minimises the risk of legal challenge as the draft Policy is in line with the estimated expenditure in the 9 year plan.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

The application of the Policy may be of interest to Community Boards where growth/development is occurring within their Board areas.

Council

11 February 2025

Financial Report - Period ended 30 November 2024

Department: Finance

EXECUTIVE SUMMARY

1 This report provides the financial results for the period ended 30 November 2024 and the financial position as at that date.

2 As this is an administrative report only, there are no options or Summary of Considerations.

Financial Overview

For the period ended 30 November 2024

RECOMMENDATIONS

That the Council:

a) Notes the Financial Performance for the period ended 30 November 2024 and the Financial Position as at that date.

BACKGROUND

3 This report provides the financial statements for the period ended 30 November 2024. It includes reports on financial performance, financial position, cashflows and capital expenditure. Summary information is provided in the body of this report with detailed results attached. The operating result is also shown by group, including analysis by revenue and expenditure type.

DISCUSSION

4 This report includes a high-level summary of the financial information to 30 November 2024. Please refer to Attachment I for the detailed financial update.

Statement of Financial Performance

5 Revenue was $164.484 million for the period or $1.451 million less than budget.

6 Operating revenue (external and internal combined) was unfavourable $382k mainly due to lower-than-expected revenue from Parking Services and Aquatic Services activities.

7 Grants revenue was unfavourable $1.896 million reflecting funding decisions by NZTA under the National Land Transport Programme, and timing of the transport contractor work programme. Better Off Funding revenue was slightly less than budgeted.

8 Expenditure was $189.031 million for the period, or $5.594 million less than budget.

9 Personnel expenditure was unfavourable $1.555 million. A significant contributor to the unfavourable variance was the increase in the annual leave provision, which builds up in the lead up to holiday periods and timing of pay periods. Annual leave is being actively managed and is expected to reduce in the coming months. The personnel budget is being managed with vacancy management.

10 Operations and maintenance expenditure was favourable $635k with unfavourable Transport maintenance costs more than offset by under expenditure in other activities, including Three Waters and Waste and Environmental Services. Transport costs included emergency works totalling $1.558 million associated with the October rain event.

11 Depreciation costs were favourable $6.522 million, mainly due to the revaluation of Three Waters assets, and to a lesser extent Property and Parks assets.

12 Interest costs were favourable $1.355 million, reflecting a lower interest rate than budgeted and the timing of new loan advances.

13 Year to date the Waipori Fund has reported a net operating surplus of $6.611 million, $4.767 million more than budget. New Zealand and international equities saw continued increases in value during November. Fixed Term investment values saw a reduction in value for the month, however revenue was still ahead of budget for the year to date.

Statement of Financial Position

14 Capital expenditure was $58.560 million or 70.0% of the year-to-date budget. Capital expenditure in most activities was generally within budget for the period.

15 The loans balance now includes accrued interest of $4.362 million (representing the loan interest owing but not yet paid at 30 November, shown as short-term loans). Previously this was classified separate to the loan balance, however the accounting standards now require this to be included. The actual loan balance at 30 November was $636.973 million, $25.500 million less than budget.

16 Attachment A includes a chart showing actual group and DCC debt for the years ending June 2003-2024. It provides forecast information for the years ending June 2024-2027 based on the current Statements of Intent (SOI).

OPTIONS

17 As this is an administrative report only, there are no options provided.

NEXT STEPS

18 Financial Result Reports continue be presented to future meetings of either the Finance and Council Controlled Organisation Committee or Council.

Signatories

Author:	Hayden McAuliffe - Financial Services Manager
Authoriser:	Carolyn Allan - Chief Financial Officer

Attachments

	Title	Page
⇩a	Dashboard Summary Financial Information	180
⇩b	Debt Graph	181
⇩c	Statement of Financial Performance	182
⇩d	Statement of Financial Position	183
⇩e	Statement of Cashflows	184
⇩f	Capital Expenditure Summary	185
⇩g	Capital Expenditure Detailed Programme	186
⇩h	Operating Variances	193
⇩i	Detailed Financial Update	194

Council

11 February 2025

Save our Southern Hospital Campaign Update

Department: Communications and Marketing

EXECUTIVE SUMMARY

1 The purpose of this report is to update the Council on the Save Our Southern Hospital campaign.

2 The Council reignited the Save Our Southern Hospital campaign to fight the proposed cuts to the New Dunedin Hospital, which have now largely been reversed.

RECOMMENDATIONS

That the Council:

a) Notes the update report on the SOS Hospital campaign.

BACKGROUND

3 Following the Government’s announcement of proposed cuts to the Hospital, Council reignited the Save Our Southern Hospital campaign (formerly ‘They Save We Pay’) to argue strongly for a fit-for-purpose hospital.

4 It is understood that Government considered both:

a) Removing a floor from the planned Inpatient Building,

b) Refurbishing the old hospital rather than building a new one.

5 In mid-September 2024, Council endorsed a campaign against any proposed cuts to the new hospital project. This included a public protest march which was held on 28 September. An estimated 35,000 people from the southern region marched to show their support for the hospital to be built as promised.

6 An ambulance (Cliff) was loaned for the purpose of the campaign and was used to generate support and publicity around the city and southern region.

7 Cliff and the Mayor and Councillors visited Parliament to present the nurses’ petition against the proposed cuts to the hospital.

8 Council initially approved $146,099 for the campaign. This was later topped up with a $200,000 approved over-spend to see the campaign through to 31 March 2025.

9 Following the march, various other initiatives have been undertaken including media coverage, posters, social media, online and print advertising and ‘flash mob’ type activations. Successful campaign activity has included:

a) A Southern Delegation presenting the nurses’ petition (with approximately 35,000 signatures) against the proposed cuts

b) Billboards in Wellington

c) A Town Hall meeting

d) An online ‘advent calendar’

e) 20 Santas delivering a Christmas wish to Parliament

f) Several Cliff the ambulance activations including a convoy, trips to other parts of the Southern region, and appearances at a variety of events including the Christmas Parade

g) A series of opinion pieces that ran in Nationwide media over summer 2024-25

10 Community engagement has included:

a) Members of the public sending physical and digital postcards to the Ministers. 1300 digital postcards were sent

b) Members of the public participating in events such as the public march and the Town Hall rally

c) Members of the public donating to the campaign

d) Volunteers joining both the Save Our Southern Hospital ‘Think Tank’ group of leaders and experts, and a grassroots brainstorming session in January 2025

11 The campaign took on a life beyond the Dunedin City Council, with members of the public contacting politicians, writing letters to the editor, being active on social media, organising their own activations, and more.

12 On Friday 31 January the Government announced that the Southern Hospital will be built on the Cadbury Site as promised. All eleven planned floors will also be built.

13 It is understood that the number of beds initially expected to be in the new hospital was 421 (source: detailed business case). It is understood that there are currently 329 staffed beds in the current hospital (source: Otago Daily Times), and that there are expected to be 351 beds on opening day, expanding to 404 beds over time (source, attachment A from the Government’s media release).

14 Attachment A notes: ’20 short-stay surgical beds, new model of care’. It is understood that the ‘new models of care’ are no different from earlier hospital designs.

15 Among other issues, is understood that it is unclear to the public which departments will be impacted, whether a PET scanner will be included, and what the decisions mean for pathology services. (Source: Otago Daily Times.)

16 Though many details are yet to be worked through, the hospital design appears to have been future proofed in that the new Southern Hospital will be able to be adapted and scaled up to meet the needs of the region.

17 At the time of the announcement, other campaign activity (including over-sized congratulations cards for the new Ministers, more Wellington billboards and more Cliff the ambulance activations) was being planned. This activity has now ceased.

18 On Saturday 1 February a full-page ad in the Otago Daily Times congratulated the people of the South for the success of the campaign.

19 The ad text read: ‘We did it! Congratulations to the people of the South. Our voices were loud and many – and we were heard. All eleven floors. Built on Cadbury site. We will all be keeping a close eye on progress to ensure the Government delivers on their promise. But in the meantime… give yourselves a big pat on the back!’ (See attachment B)

DISCUSSION

20 The Save Our Southern Hospital campaign has succeeded in convincing Government to honour their promise to build all eleven floors of the Inpatient Building on the Cadbury site.

21 Of the total approved allocation of $346,099, $175,481 has been spent as at 31 January 2025, with an estimated further $20,000 committed but not yet incurred.

22 Income from badge sales, t-shirt sales and donations is still being calculated, but exceeds $13,700 in total.

23 A close eye will need to be kept on developments to ensure a fit-for-purpose Inpatient Building is delivered.

OPTIONS

24 Not applicable.

NEXT STEPS

25 The next milestone will be the awarding of the construction contract and building work resuming onsite.

Signatories

Author:	Kathryn van Beek - Acting Communications Team Manager
Authoriser:	Robert West - General Manager Corporate Services

Attachments

	Title	Page
⇩a	New Dunedin Hospital Factsheet	210
⇩b	We Did It ODT ad	211

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This decision enables 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, and promotes the 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	☐	☐	✔

Māori Impact Statement

Sustainability

The hospital campaign advocated for economic and social sustainability.

Zero carbon

There are no known impacts.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

There are no known implications.

Financial considerations

The $200,000 approved over-spend is considered sensitive expenditure.

Significance

While this is low significance in terms of the Significance and Engagement Policy, the Hospital Campaign has a high level of significance for the community.

Engagement – external

The campaign has engaged with organisations and groups including the public of Dunedin, Rūnaka, Mayors of Southern and Otago Councils, people across the southern region, Grey Power, Nurses, Doctors, Clinicians, The University of Otago, Otago Polytechnic, Business South and local businesses, and the 35,000 people who attended the public march.

Engagement - internal

There has been no internal engagement.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There is no known conflict of interest.

Community Boards

There are no known implications for Community Boards.

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

Author:	Lynne Adamson - Governance Support Officer
Authoriser:	Robert West - General Manager Corporate Services