2018-07-06 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                                                 6 JULY 2018


4                        ADOPTION OF 2018-19 FEES AND CHARGES
DOCUMENT INFORM AT ION




Author                           Director Corporate Services, Michael Shave
                                 Corporate Services Department

Index                            ECM/ Subject/ 2018 - 2019 Budget

Attachments                      1.   2018-19 Fees and Charges
                                      (Note – 57 pg attachment provided separately to this report –
                                      Councillors refer to Tab 3 of Councillor budget packs)



EXECUTIVE SUMMARY
General cost-recovery fees and commercial charges are expected to generate approximately
$15.8 million in the 2018/19 financial year, representing almost 17% of Council’s combined
annual operating revenue. Cost-recovery fees are set where possible to reflect cost recovery,
with commercial charges set at full cost after consideration of market factors. The 2018-19 fees
and charges schedule is provided in Attachment 1.


RECOMMENDATION
That Council note the report by the Director Corporate Services to the Special Meeting dated 6
July 2018 and pursuant to sections 97, 98 and 262(3)(c) of the Local Government Act 2009, fix,
for the 2018/19 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 2018-19 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 come under 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 full user pays philosophy, and no
general rate subsidy was required.

Previous Council Consideration
Nil.

Finance
General cost-recovery fees and commercial charges are expected to generate approximately
$15.8 million in the 2018/19 financial year, representing almost 17% of Council’s combined
annual operating revenue.



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