Annual Plan 2020/21

Plans

Annual Plan Overview

Our Annual Plan sets out Council’s plan and budget for the year.  This Annual Plan correlates to Year 3 of our Long Term Plan and reflects changes and updates to the work programme for this year.  However, this year, like the rest of the world, we need to make adjustments as we respond to the unprecedented situation arising from COVID-19.

Businesses, households and individuals will be under significant pressure in the months ahead, and like you, we still do not know the full impact of this crisis. So, we have stepped back to carefully evaluate our plans for the next year.

In revising our plan, we want to make sure our decisions support a recovering economy - striking a balance between continuing to provide quality services to our community, while easing the financial burden. This means continued investment in essential services and projects that will help our district.

As a Council we are in a strong financial position. Over many years, there has been prudent management of Council’s finances and assets. We have been careful to make sure we have comparatively low levels of debt, we have built up strong reserves and savings and maintained good infrastructure to ensure levels of service can continue.  All these factors combined mean Council is in a good position to use some of its savings and reserves to lower the rates increase in these exceptional times.

Council undertook public consultation seeking feedback on two issues:

  • Whether Council should use $3million of reserves and savings to reduce the total amount of rates collected, resulting in a rates increase across the district of 2%; and
  • How the public thought the $2million stimulus fund should be used to aid the Timaru District's recovery from Covid 19 and whether the proposed principles were appropriate.

Council received 78 submission and a number of submitters chose to attend the Council Hearing on 23 June to present their views.

You can read a summary of all the topics raised by submitters and staff comments provided to Council here:

Following the public hearing and having considered all of the submissions, the Council made the following decisions in respect of the two key issues discussed with the community.

Total Rates increase for 2020/21

  • The total rates increase for 2020/21 will be 2%.

Stimulus Fund

  • That a Stimulus Fund of $2M will be established for 2020/21.
  • That $150,000 of this fund will be made available to support events in the district, administered by Aoraki Development and Promotions Limited.
  • That the remaining $1,850,000 is available for projects that help stimulate district recovery
  • Principles, criteria and timeframes  for the fund will be formalised, following which applications for funding will be invited.

The minutes of the Council meeting on 23 June 2020 Annual Plan hearing covering all of the decisions made are in respect of the Annual Plan submissions are available here:

Annual Plan Hearing 23 June 2020 Minutes

The Annual Plan and Rates Resolution for 2020/21 were adopted by Council on 30 June 2020.

Fees and Charges

Council also set the Fees and Charges for the 2020/21 year.

Fees and Charges

Annual Plan - Frequently Asked Questions


What’s the Annual Plan?

All local authorities are required to prepare an Annual Plan under Section 95 of the Local Government Act 2002.

Annual plans are produced for the years between Long-Term Plans (LTP), with the LTP setting the longer term strategic direction.

The annual plan is a one-year snapshot of Council’s intended work programme for the year. It outlines what the Council is planning to do, and any changes to the relevant year of the Long Term Plan, including financial information such as costs and funding and rates.

Annual plans are based on the relevant year of the Long Term Plan, and give us the opportunity to refresh information and budgets for the coming year, and include the setting of rates. They also highlight any changes to the Annual Plan for that particular year.

How does the council planning process work?

Every three years – part way through each election term – the council is required to develop and adopt a long-term plan. The first year of each LTP represents the Annual Plan for that year. In the years between long-term plans, annual plans are produced. These outline any changes to the LTP work programme and budget.

At the end of each year, an annual report and summary annual report is produced. These let the community know about what’s been achieved and how we have performed, as well as anything that hasn’t quite gone to plan or anything unexpected that's come up.

Why can councils choose not to consult on annual plans?

A series of amendments were made to the Local Government Act 2002 (the Act) in 2014 to encourage new ways of consulting and communicating with the community.

One of these amendments removed the requirement for councils to formally consult “if there are no significant or material differences to the content of the long-term plan”. This now makes formal consultation on proposed annual plans exceptions-based – that is, if there are no significant changes Council is not legally required to consult.

An annual plan that includes an overview of any minor changes in costs (along with all other information required under Part 2 of Schedule 10 of the Act) must still be prepared and adopted by council resolution before 30 June.

How do we decide what is significant?

Section 5 of the Local Government Act 2002 (the Act) describes “significance” as the degree of importance of any issue, proposal, decision, or matter, as assessed by the local authority, in terms of its likely impact on, and likely consequences for:

  • the district or region
  • anyone likely to be particularly affected or interested
  • the capacity of the local authority to perform its role, and the financial and other costs of doing so.

Section 5 also describes “significant” as any issue, proposal, decision, or other matter having a “high degree of significance, that is:

  • significant or material variations/departures from the financial statements or funding impact statement in the long-term plan
  • significant new spending proposals, and the associated costs, or
  • substantial delays to, or cancellation of, significant projects, and associated implications.

The Council is required to have a Significance and Engagement policy under Section 76AA of the Local Government Act 2002. The Policy is reviewed every three years as part of long-term plans.

Timaru District Council Significance and Engagement policy

Significance covers more than just a financial impact, and sometimes items with low value but that have high public interest can be significant.

Significance is ultimately determined by the elected members.

What’s the difference between formal consultation and engagement?

Consultation involves receiving public feedback on proposals, and is one form of engagement. The Council regularly consults with the community through processes such as the long-term plan, which determine Council’s strategic direction, as well as how it sets budgets and prioritises projects.

The Council will consult with the community about significant decisions following the principles set out in Section 82 of the Act. The Council can also decide to consult at any time on a decision, where it considers that appropriate. For most Council decisions, there is no express requirement to consult the public, but we will consider people’s views and preferences.

Engagement is a broader and ongoing process of sharing information with the community and seeking its feedback, with the purpose of involving the community in the process of decision making. This may or may not include a more formal consultation process.

What if I want to let the Council know my views, and it’s not part of a formal consultation?

We are happy to receive feedback at any time throughout the year, not just at annual plan time.

Please get in touch if you want to share your ideas, have some positive feedback about our staff, or have something you are not so happy about.

If it’s a particular issue around something you think needs fixing, contact our Customer Services team on (03) 687 7200 or enquiry@timdc.govt.nz or via our Website - Contact Us

You can also use the App Snap-Send-Solve, available via the Apple App store or Android’s Google Play.

Last updated: 01 Jul 2020