The document discusses the requirements for local councils in New Zealand to prepare annual plans under the Local Government Act 2002. It summarizes that annual plans are no longer required to use the special consultative procedure if there are no significant or material differences from the content in the long-term plan for that year. If differences exist, consultation is required that gives effect to section 82 using an annual plan consultation document. The document outlines what must be included in the consultation document such as explanations of any significant variations in spending, costs, or delays/cancellations of significant projects and their implications. It concludes that even minor changes from the long-term plan could be considered significant, so consultation is advisable to avoid challenges.
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The Exceptions Based Annual Plan – Some Stakes in the Ground
1. The Exceptions Based Annual Plan
- Some Stakes in the Ground
Jonathan Salter
17 August 2015
2. Overview
• A recap on the 2014 Amendments
• LTP issues
• Annual plan consultation (or not)
3. Local Government Act 2002 Amendment Act 2014
• Significance and Engagement Policy section 76AA
• Consultation to give effect to section 82
• Limited use of special consultative procedure
• Long term plan consultation – sections 93A – 93G
• Annual plan consultation – sections 95, 95A – 95B
4. Significance and Engagement Policy
• Still covers significance and strategic assets
• “engagement” is new
• How the council will respond to community preferences about
engagement, including the form of consultation that may be
desirable
• Clarity about how and when communities can expect to be
engaged
• Section 82 to adopt or amend; section 80 applies to significant
departures; summary in the LTP
5. Consultation under section 82
• Instead of SCP but similar (or the same)
• Section 82A requirements – what must be publicly available
• No longer SCP:
– annual plan
– revenue and financing policy
– development contributions policy
– rates remission and postponement policies (including on Maori freehold
land)
– bylaws below the significance threshold in section 156(1)(a)
– establishment of a CCO
6. Consultation under section 82 cont’d
• Still SCP:
– long term plan
– bylaws above the significance threshold
– rates replacement proposals; early payment policies
– dog control policy
– Class 4 venue (Gambling) policy
– local alcohol policy
– transfer of functions under various Acts
– various others
7. Long term plan consultation
• Special consultative procedure (section 83) with a
consultation document (sections 93A – 93F)
• Underlying information – section 93G
• Consultation document must meet the purpose in sectoin 93B
and include the detail from section 93C(2), and be as concise
and simple as possible
• Effectively limits consultation outcomes
– audit process
– outcomes not in the consultation document
• Parallel consultation on some policies
8. Annual Plan Requirements
• Council must prepare and adopt an annual plan before the
commencement of each financial year – s 95 (1) and (3)
• Content requirements – s 95(5), (6) and (6A) and clauses 18 to
22 of Schedule 10
• Annual budget and FIS for the year and identify variations
from financial statements and FIS in LTP for that year
• In first year of LTP, LTP is the annual plan
9. Annual Plan Process
• If no significant or material differences from content of LTP for
the year – consultation not required, ie Council resolution
(but subject to SEP on engagement and sections 76-79)
• Otherwise consultation in a manner giving effect to section
82, with consultation document under section 95A
• If combined with an LTP amendment, must combine
consultation document requirements into one CD and use SCP
10. AP Consultation Document
• Purpose is to provide effective public participation in
decision process relating to council activities in the
coming year and the effects on costs and funding by:
– identifying significant or material differences between proposed plan
and content of LTP for the year
– in a way that can be easily understood
– to inform discussions
– as concise and simple as possible
– without containing or attaching a draft plan or policy or any detail
from Schedule 10 that isn’t necessary to the purpose
11. Mandatory content s 95A(2)
• Explain identified differences including:
– significant or material variations or departures from financial statements
or FIS;
– significant new spending proposals, associated costs, and how they will be
met;
– any proposal to substantially delay, or not proceed with, a significant
project, and financial and service delivery implications
• Outline expected consequences of proceeding with the above
differences and implications for the financial strategy
12. Significant or material
• “significant” – refer to SEP, but literally having a high
degree of significance
• “material” – if it could, itself or in conjunction with other
differences, influence the decisions or assessment of
those reading or responding to the consultation
document (section 95A(5))
13. Conclusion
• Annual plan is not subject to audit – but you might want
to talk to auditors!
• If there is any change from LTP that is more than minor –
it would be a brave call not to consult
• Key indicators – impact on financial strategy; changes to
FIS that affect rates (especially)
• Consider including provisions in SEP to set expectations