3 Year Long Term Plan proposed

OIC

Council and the Department of Internal Affairs are proposing a change to planning requirements to allow a customised three-year plan to be prepared in 2018 in place of the standard Long-Term Plan (LTP). 

The Local Government Act 2002 requires the Council to prepare an LTP every three years, our next LTP is due in 2018. However, developing a 10 year plan takes significant resource. Right now, Council's focus is on recovery and on supporting our community. 

Preparing a customised three-year plan in place of the standard long-term plan will reduce the planning burden on the Council and is better suited to a short-medium term focus on recovery. It will provide our  communities with more useful information on the strategic planning for the District and will allow the Council to continue to focus on recovery efforts.

Have your say:

The change will require an Order in Council under the Hurunui/ Kaikōura Earthquakes Recovery Act 2016 to remove the long-term planning requirements on the Council and replace them with a customised three-year plan.

More information from the Department of Internal Affairs can be found here 

 The draft Order in Council can be found here.

The Minister of Local Government is consulting on the proposed change. Submissions must be received by midnight 15 January 2018 and can be sent to: kdcplan2018@dia.govt.nz or KDC Plan 2018 Submission, Department of Internal Affairs, PO Box 805, Wellington 6140.

Q&As

What would the proposed three-year plan include?

Under the draft Order, the three-year plan will provide most of the same information as a long-term plan but with a three-year outlook rather than a ten-year one. The three-year plan will identify key challenges for the coming years, describe the Council’s intentions to deal with these, and discuss how this will be funded. The plan will also discuss things that are expected to have a significant impact on the Council during the next three years, including levels of service to be delivered during the recovery.

The Council will still need to prepare and adopt an annual plan for each financial year, with the three-year plan acting as the annual plan for 2018/19.

The proposed Order does not include audit requirements for the three-year plan, as this is impractical given the quality of the information available at this time and content of the plan. The plan will, however, be required to clearly set out information limitations and assumptions made by the Council in developing the plan. Annual plans and annual reports will continue to be audited.

How can I be involved in the three-year planning process?

Community consultation during the long-term planning process provides the basis for a dialogue between the Council and its residents. Community consultation will remain part of the process for adopting the three-year plan. Council expects to consult with the community via public meetings and a submissions process around May 2018 - more information will be provided closer to the time. 

Under the Order Council will make available a summary description of the 3 Year Plan and a copy of the full draft of the 3 Year Plan, and provide an opportunity for the public to present their views on the plan to the Council.

What is an Order in Council?

An Order in Council is a legislative instrument that is made by the Governor General to give effect to a decision by the Executive arm of the Government. The power to approve the proposed Order in Council comes from the Hurunui/Kaikōura Earthquakes Recovery Act 2016. The Order is able to alter the requirements of specific Acts, including the Local Government Act 2002.

What will the Order in Council do?

This is a temporary solution to support the Council over the medium-term. The Order will maintain as much of the traditional planning process as possible, but will customise the Council’s plan to reflect the recovery process.

The proposed Order would allow the Council to set a three-year plan that reflects the recovery efforts for the district, rather than a traditional long-term plan that contains extensive financial and infrastructure planning looking forward at least 10 years. The Council will return to the standard long-term plan process in 2021 at which point it will have better information to produce long-term forecasts.

What does a standard long-term plan do and how is it set?

The Local Government Act 2002 requires the Council to prepare a long-term plan every three years. The long-term plan also acts as a local authority’s annual plan for the first year it is adopted.

The long-term plan sets the strategic direction for the Council’s level of service provision and financial, infrastructure and asset management. It forecasts impacts and needs for Council activities over at least ten-years. The long-term plan does not commit the Council to any specific actions, but some decisions can only be made if they are provided for in a long-term plan.

Why three years and not ten?

Ongoing uncertainties about the extent of Kaikōura’s infrastructure damage, and its financial implications mean that the ten-year period is not a realistic financial planning horizon. A ten-year plan would be based on information and assumptions about recovery and business as usual post recovery. That supporting information is not clear yet. 

All local authorities must adopt a new long-term plan every three years. Reducing the plan to this period will keep the Council in alignment with this planning cycle.