2022-06-28 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                                28 JUNE 2022

4    2022-23 FEES AND CHARGES

Author            Manager Financial Services (Acting), Pauline Coles
                  Corporate Services Department

Index             ECM/ 7.34 – 2022-23 Fees and Charges

Attachments       Attachment 1 - 2022-23 Schedule of Fees and Charges
                  (76 page attachment provided separately to this report)


EXECUTIVE SUMMARY
General cost-recovery fees and commercial charges are expected to generate approximately $21.2
million in the 2022-23 financial year, representing almost 18% of Council’s annual operating revenue.
Fees and charges are set where possible to reflect cost recovery, with commercial charges set at
full cost after consideration of market factors. The 2022-23 fees and charges schedule is provided
in Attachment 1.
RECOMMENDATION
That Council note the report by the Manager Financial Services (Acting) to the Special Meeting dated
28 June 2022 and pursuant to sections 97, 98 and 262(3)(c) of the Local Government Act 2009, fix,
for the 2022-23 financial year the cost-recovery fees and commercial charges provided as
Attachment 1 to the report.

REPORT
Section 97 of the Local Government Act 2009 requires that cost-recovery fees are to be set at a level
equal to or less than cost of providing a particular service. As part of the 2022-23 budget
development, fees and charges were reviewed to ensure that where possible prices were set for
anticipated volumes at cost reflective levels in line with legislation. Increases identified at levels
above inflation were subsequently presented to Councillors through budget workshops for
discussion and agreement.

Charges which are commercial in nature are set in accordance with Section 262(3)(c) of the Local
Government Act 2009. Commercial charges are applicable to both of Council’s nominated business
activities, Waste Management and the Holiday Parks. Full cost price modelling was undertaken for
both of these activities to ensure that charges reflected full cost and a user pays philosophy, and no
general rate subsidy is required

Previous Council Consideration
Council considers fees and charges levels annually as part of the budget process. Fees and charges
can also be amended, removed or introduced during a financial year via Council resolution.

Finance
General cost-recovery fees and commercial charges are expected to generate approximately $21.2
million in the 2022-23 financial year, representing almost 18% of Council’s combined annual
operating revenue.

Risks & Opportunities
Failure to appropriately adopt general cost-recovery fees and commercial charges may result in
Council being left without the head or power to charge for goods and services, compromising
ongoing financial sustainability and Council’s reputation.



                                                                                       Page 47 of 79