Budget Committee - May 2015

8/9/2019 Budget Committee - May 2015

1/316

Note: The reports contained within this agenda are for consideration and should not be construed as Council policyunless and until adopted. Should Members require further information relating to any reports, please contactthe relevant manager, Chairperson or Deputy Chairperson.

I hereby give notice that an ordinary meeting of the Budget Committee will be held on:

Date:Time:Meeting Room:Venue:

Thursday, 7 May 2015 9.30am Reception LoungeAuckland Town Hall301-305 Queen StreetAuckland

Budget CommitteeOPEN AGENDA

MEMBERSHIP

Chairperson Mayor Len Brown, JP Deputy Chairperson Cr Penny Webster Members Cr Anae Arthur Anae Cr Calum Penrose

Cr Cameron Brewer Cr Dick Quax Cr Dr Cathy Casey Cr Sharon Stewart, QSM Cr Bill Cashmore Member David Taipari Cr Ross Clow Member John Tamihere Cr Linda Cooper, JP Cr Sir John Walker, KNZM, CBE Cr Chris Darby Cr Wayne Walker Cr Alf Filipaina Cr John Watson Cr Hon Christine Fletcher, QSO Cr George Wood, CNZM Deputy Mayor Penny HulseCr Denise KrumCr Mike Lee

(Quorum 11 members)

Mike GiddeyDemocracy Advisor

30 April 2015

Contact Telephone: (09) 890 8143Email: [email protected]: www.aucklandcouncil.govt.nz


2/316


3/316

TERMS OF REFERENCE

Responsibilities

Development of the Long Term Plan and Annual Plans under the chairmanship of the Mayorwho leads these processes including:

Local Board agreements

Local Board Funding Policy

Financial Policy related to LTP and AP (recommendation to the Governing Body)

Setting of rates (recommendation to the Governing Body)

Draft LTP and Annual Plan prior to community consultation

Development contributions policy

Powers

(i) All powers necessary to perform the committee’s responsibilities.

Except:

(a) powers that the Governing Body cannot delegate or has retained to itself (seeGoverning Body responsibilities)

(b) where the committee’s responsibility is explicitly limited to making arecommendation only

(ii) Approval of a submission to an external body

(iii) Powers belonging to another committee, where it is necessary to make a decision priorto the next meeting of that other committee.

(iv) Power to establish subcommittees.

(v) Power to establish panels for the purpose of hearing submissions


4/316

EXCLUSION OF THE PUBLIC – WHO NEEDS TO LEAVE THE MEETING

Members of the public

All members of the public must leave the meeting when the public are excluded unless aresolution is passed permitting a person to remain because their knowledge will assist themeeting.

Those who are not members of the public

General principles

Access to confidential information is managed on a “need to know” basis whereaccess to the information is required in order for a person to perform their role.

Those who are not members of the meeting (see list below) must leave unless it isnecessary for them to remain and hear the debate in order to perform their role.

Those who need to be present for one confidential item can remain only for that itemand must leave the room for any other confidential items.

In any case of doubt, the ruling of the chairperson is final.

Members of the meeting

The members of the meeting remain (all Governing Body members if the meeting is aGoverning Body meeting; all members of the committee if the meeting is a committeemeeting).

However, standing orders require that a councillor who has a pecuniary conflict ofinterest leave the room.

All councillors have the right to attend any meeting of a committee and councillorswho are not members of a committee may remain, subject to any limitations instanding orders.

Staff

All staff supporting the meeting (administrative, senior management) remain. Only staff who need to because of their role may remain.

Local Board members

Local Board members who need to hear the matter being discussed in order to

perform their role may remain. This will usually be if the matter affects, or is relevantto, a particular Local Board area.

IMSB

Members of the IMSB who are appointed members of the meeting remain. Other IMSB members and IMSB staff remain if this is necessary in order for them to

perform their role.

CCOs

Representatives of a CCO can remain only if required to for discussion of a matter relevant

to the CCO.


5/316

Budget Committee

07 May 2015

Page 5

ITEM TABLE OF CONTENTS PAGE

1 Apologies 7

2 Declaration of Interest 7

3 Confirmation of Minutes 7

4 Petitions 7

5 Public Input 7

6 Local Board Input 7

7 Extraordinary Business 7

8 Notices of Motion 8

9 Long-term Plan 2015-2025 - Overview to decision-making 9

10 Long-term Plan 2015-2025: Local Board views 23

11 Long-term Plan 2015-2025 - Local Board update

This report will be distributed in an addendum agenda.

12 Long-term Plan 2015-2025 – Draft Tūpuna Maunga Operational Plan2015/16 49

13 Long-term Plan 2015-2025 - Mayor's Report 57

14 Long-term Plan 2015-2025 - Proposal to establish a new UrbanDevelopment Entity (Development Auckland) 233

15 Greenways - A regional approach to greenways 261

16 Review of Business Improvement Districts Service Delivery Model 267

17 Long-term Plan 2015-2025 - Other Policies 307

18 Long-term Plan 2015-2025 - Performance measures 309

19 Consideration of Extraordinary Items


6/316


7/316

Budget Committee

07 May 2015

Page 7

1 Apologies

At the close of the agenda no apologies had been received.

2 Declaration of Interest

Members are reminded of the need to be vigilant to stand aside from decision makingwhen a conflict arises between their role as a member and any private or other externalinterest they might have.

3 Confirmation of Minutes

That the Budget Committee:

a) confirm the ordinary minutes of its meeting, held on Tuesday, 18 November 2014 asa true and correct record.

4 Petitions

At the close of the agenda no requests to present petitions had been received.

5 Public Input

Standing Order 3.21 provides for Public Input. Applications to speak must be made to theCommittee Secretary, in writing, no later than two (2) working days prior to the meetingand must include the subject matter. The meeting Chairperson has the discretion todecline any application that does not meet the requirements of Standing Orders. Amaximum of thirty (30) minutes is allocated to the period for public input with five (5) minutes speaking time for each speaker.

At the close of the agenda no requests for public input had been received.

6 Local Board Input

Standing Order 3.22 provides for Local Board Input. The Chairperson (or nominee of thatChairperson) is entitled to speak for up to five (5) minutes during this time. TheChairperson of the Local Board (or nominee of that Chairperson) shall wherever practical,give two (2) days notice of their wish to speak. The meeting Chairperson has thediscretion to decline any application that does not meet the requirements of StandingOrders.

This right is in addition to the right under Standing Order 3.9.14 to speak to matters on theagenda.

At the close of the agenda no requests for local board input had been received.

7 Extraordinary Business

Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (asamended) states:

“An item that is not on the agenda for a meeting may be dealt with at that meeting if -

(a) The local authority by resolution so decides; and

(b) The presiding member explains at the meeting, at a time when it is open to the


8/316

Budget Committee

07 May 2015

Page 8

public,-

(i) The reason why the item is not on the agenda; and

(ii) The reason why the discussion of the item cannot be delayed until asubsequent meeting.”

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (asamended) states:

“Where an item is not on the agenda for a meeting,-

(a) That item may be discussed at that meeting if-

(i) That item is a minor matter relating to the general business of the localauthority; and

(ii) the presiding member explains at the beginning of the meeting, at a time

when it is open to the public, that the item will be discussed at the meeting;but

(b) no resolution, decision or recommendation may be made in respect of that itemexcept to refer that item to a subsequent meeting of the local authority for furtherdiscussion.”

8 Notices of Motion

At the close of the agenda no requests for notices of motion had been received.


9/316

I t e m 9

Budget Committee

07 May 2015

Long-term Plan 2015-2025 - Overview to decision-making Page 9

Long-term Plan 2015-2025 - Overview to decision-making

File No.: CP2015/07295

Purpose1. This report provides an overview of the process undertaken to consult and consider

feedback to inform the Council’s next 10-year budget (the Long-term Plan 2015-2025 orLTP), the decisions now required and the next steps to finalise the plan.

Executive Summary2. Between 23 January and 16 March 2015, Auckland Council undertook public consultation to

inform its next 10-year budget using the special consultative procedure.

3. The consultation approach reflected recent changes in legislation that provide greaterflexibility to enable the process to work better for the community and decision-makers, andestablished three broad channels of feedback (written, in-person and digital).

4. To support the consultation process, a significant public awareness raising campaign wasundertaken over mid-January to mid-March. The level of awareness of the 10-year budget(LTP) across the Auckland population increased significantly over this period, from 34% inDecember 2014 to 54% in mid-March 2015 when the consultation period closed.

5. The volume of feedback received across the three broad channels was:

27,383 written submissions (including 203 late submissions) were received, providingover 260,000 feedback points

1,412 people attended a Have Your Say event, providing over 8,600 feedback points,and around 900 people attended local community events and provided over 1,600feedback points

1,354 pieces of eligible feedback were provided through digital channels

6. All feedback was processed and coded into feedback points across a range of themes andtopics. Staff with specific subject matter expertise then reviewed all feedback relevant totheir area and distilled this into a set of 11 regional and 21 local ‘Summary of Feedback’reports for consideration by elected members.

7. All Summary of Feedback reports are available on the Auckland Council website athttp://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan20

15/Pages/home.aspx. The submissions and feedback received will also be available on thecouncil website by 30 April 2015.

8. This approach was designed to suit the size and scale of the Auckland Council consultationprocess and ensure decision-makers were well informed about the feedback received from Aucklanders on the 10-year budget.

9. In addition to collecting feedback on transport issues using the consultation process, anindependent survey of 5,022 respondents was undertaken by Colmar Brunton on the keytransport issues facing Auckland. The end to end survey process and final report on thesurvey results were peer-reviewed by the University of Auckland.

10. Prior to meeting today to make decisions, the Budget Committee held discussions with local

boards and also held workshops to consider key matters for decision-making.11. Decisions on the 10-year budget are now required in order for staff to finalise financial

statements, progress local board agreements, finalise the long-term plan document andcomplete an audit process ahead of adoption of the final plan on 25 June 2015.

http://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/home.aspxhttp://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/home.aspxhttp://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/home.aspxhttp://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/home.aspxhttp://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/home.aspx


10/316

Item 9

Budget Committee

07 May 2015


Recommendation/sThat the Budget Committee:

a) note that the decisions required to finalise the Long-term Plan 2015-2025 are set out

in separate reports on today’s agenda.

Comments

Consultat ion to in form th e 10-year budget

12. Between 23 January and 16 March 2015, Auckland Council undertook public consultation toinform its next 10-year budget (the Long-term Plan 2015-2025) using the specialconsultative procedure.

13. The consultation approach reflected recent changes in legislation that provide greaterflexibility to enable the process to work better for the community and decision-makers.

14. Key elements of the consultation process undertaken are set out below.

The Governing Body adopted a consultation document and supporting information on18 December 2014 for consultation on the 10-year budget. The consultationdocument focused on the key issues facing Auckland and the proposals and options toaddress these issues. Developing a consultation document was required under thenew legislation and aimed to make it easier for Aucklanders to understand and engageon the most important decisions being made by council. A summary of thedocuments and tools available to support consultation are set out in Attachment A.

The public consultation period opened on 23 January 2015 and closed on 16 March2015 – this longer consultation period provided more time for Aucklanders to providefeedback.

A public awareness raising campaign was undertaken over mid-January to mid-Marchto encourage Aucklanders to participate in the consultation process. This includeddistributing a Summary document to all households promoting the consultationdocument and the shapeauckland website, as well as a significant campaign at both aregional and local level to raise awareness - across media channels (print, radio,television), engagement events, targeted stakeholder communications and socialmedia.

The level of awareness of the 10-year budget (LTP) across the Auckland populationincreased significantly over this period, from 34% in December 2014 to 54% in mid-March 2015 when the consultation period closed. An overview of the publicawareness raising activity undertaken and key stats is provided in Attachment B.

Three broad channels were used to collect feedback to make it easier for Aucklandersto get involved and feedback was collected across all channels at the same time.

i. Written feedback – this included a hard copy feedback form (distributed to Aucklandhouseholds as part of a Summary document), an online feedback form and also anyemails, letters, proformas or other written communications received.

ii. In person feedback – Events were held across Auckland (largely in the evenings andweekends) to provide an opportunity for Aucklanders to provide feedback in person

to elected members. Two types of events were held:o Have your say events - Traditional hearings were replaced with 37 public

spoken interaction events called Have Your Say (HYS) events across the Auckland region from 14 February through to 16 March 2015. This included


11/316

I t e m 9

Budget Committee

07 May 2015


events for key stakeholders and also for specific communities (Maori, Ethnic,Pacific, Disability and Youth/Seniors). 1,412 Aucklanders attended the HaveYour Say events and feedback was recorded and analysed alongside otherchannels.

o 40 local community feedback events were also held, which were attended byaround 900 people. These events were led by local boards and focussed more

on local issues.iii. Digital feedback – Feedback was also collected for the first time through social

media channels (facebook, twitter and blogs) using #LTP2015 and through an onlinechat event.

Independent Transpo rt Survey

15. In addition to collecting feedback on transport issues using the consultation process anindependent survey of 5,022 respondents was undertaken by Colmar Brunton on the keytransport issues facing Auckland. The end to end survey process and final report on thesurvey results were peer-reviewed by the University of Auckland.

Considerat ion of feedback

16. Feedback was received across the three broad channels established for the consultationprocess and most feedback received covered a wide range of issues, providing multiple‘feedback points’. In some cases, feedback points comment on more than one issue.

17. In summary:

27,383 written submissions (including 203 late submissions) were received, providingover 260,000 feedback points

1,412 people attended a Have Your Say event, providing over 8,600 feedback points,and around 900 people attended local community events and provided over 1,600

feedback points

1,354 pieces of eligible feedback were provided through digital channels.

18. Feedback was also received through events held with housing for older people tenants,empowered community workshops and from council advisory panels.

19. All feedback was processed and coded into feedback points across a range of themes andtopics. Staff with specific subject matter expertise then reviewed all feedback relevant totheir area and distilled this into a set of ‘Summary of Feedback’ reports for consideration byelected members.

20. 11 ‘Summary of Feedback’ reports were prepared to summarise the feedback received onregional topics and themes and these were considered by the Budget Committee between

20-22 April. As a set, these reports covered each of the key issues for consultation and allareas of council group activity. The results of the Colmar Brunton transport survey wereconsidered alongside the consultation feedback on the key transport questions (refer to theSummary of Feedback report on Transport Choices).

21. In addition, 21 reports summarising the feedback relevant to each local board area wereprepared and considered by local boards at meetings held between 15 – 23 April.

22. All Summary of Feedback reports are available on the Auckland Council website athttp://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/home.aspx. All submissions and feedback received will also be available on thecouncil website by 30 April 2015.

23. This approach was designed to suit the size and scale of the Auckland Council consultationprocess and ensure decision-makers were well informed about the feedback received from Aucklanders on the 10-year budget.

http://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/home.aspxhttp://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/home.aspxhttp://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/home.aspxhttp://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/home.aspxhttp://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/longtermplan2015/Pages/home.aspx


12/316

Item 9

Budget Committee

07 May 2015


24. Following the Budget Committee and Local Boards separately considering the feedbackreceived, three days of discussions were held between local boards and the BudgetCommittee. These discussions provided an opportunity for local board views to beconsidered ahead of the Budget Committee making final decisions for the 10-year budget.

Decision-making25. Since the draft 10-year budget was adopted, staff have reviewed and updated group

budgets to better reflect the true cost of delivering the planned activities. Now, some keybudget decisions are required, including:

confirming (or not) service level changes consulted on in the draft

decisions on transport spending and funding

considering a range of new budget proposals and funding requests, including thosefrom CCOs, council departments, submitters, local boards, the Independent MaoriStatutory Board and co-governance entities.

26. The Mayoral Report for the LTP sets out the Mayor’s recommendations for budgets, ratesand fees and charges. Staff reports on these areas are attached to the Mayor’s Report.

27. In addition, the Budget Committee will consider reports on local board advocacy,recommended amendments to policies, performance measures and targets, funding for theIndependent Maori Statutory Board and the Maunga Authority and also the proposal toestablish a new CCO (Development Auckland).

Consideration

Local Board views and implications

28. Information on local projects and priorities was included in the consultation material for the10-year budget to inform the development of local board agreements for 2015/2016. Duringthe consultation process, local boards held local community events to engage with theircommunities and a Have your say event was held in each local board area, which providedan opportunity for Aucklanders to provide feedback in person to local board members onlocal issues.

29. Reports summarising the feedback received relevant to each local board area wereconsidered by each local board between 15-23 April and local board views were then sharedwith the Budget Committee during discussions on 24, 28 and 29 April.

30. A separate report on today’s agenda covers local board advocacy for the 10-year budget.

Local board views are also considered in each of the relevant decision-making reports ontoday’s agenda.

31. Local boards will hold workshops following the budget decisions made today and then meetto agree final budgets and adopt local board agreements between 9-16 June.

Māori impact statement

32. In June 2014 the Finance and Performance Committee agreed to take a strategic top downapproach to agreeing and prioritising activities that contribute to Māori outcomes throughclarifying the council’s political direction on priority Māori transformational shift activities andassociated budgets in the LTP.

33. The Māori transformational shift priorities included in the LTP consultation material includedproposed funding for a Māori signature event, Māori capital projects (including maraedevelopment and papakāinga housing), Kaitiakitanga of Tāmaki Makaurau, a waka


13/316


14/316


15/316

A t t a c h m e n t A

I t e m 9

Budget Committee

07 May 2015



16/316


17/316

A t t a c h m e n t B

I t e m 9

Budget Committee

07 May 2015



18/316

AttachmentB

Item 9

Budget Committee

07 May 2015



19/316


I t e m 9

Budget Committee

07 May 2015



20/316

AttachmentB

Item 9

Budget Committee

07 May 2015



21/316


I t e m 9

Budget Committee

07 May 2015



22/316


23/316

I t e m 1

0

Budget Committee

07 May 2015

Long-term Plan 2015-2025: Local Board views Page 23

Long-term Plan 2015-2025: Local Board views

File No.: CP2015/07589

Purpose1. The purpose of this report is to formally note local board feedback on the LTP Consultation

Document and key advocacy areas, as previously discussed with the Budget Committee, forconsideration in decision making on the Long-term Plan 2015-2025.

Executive Summary2. Local board plans, informed by extensive community engagement, were adopted in October

2014. Legislation requires that local board plans help inform the development of the Long-term Plan 2015-2025.

3. Throughout the past year, local boards have been involved as part of council’s shared

governance model in the development of the Long-term Plan 2015-2025.4. Local boards have considered public feedback received from or on their local area on the

proposed LTP.

5. Following on from discussions with the Budget Committee in October last year, local boardsheld further discussions with the Budget Committee in April 2015 on key advocacy areasand proposed LTP priorities. Common areas of local priorities include:

Continued investment in sports fields, recreational facilities and multi-use communityfacilities

Development of greenways

Planning and action to improve water quality in the Manukau Harbour

Acquisition of land for open space and recreation in growth areas

Spatial planning and town centre development

Transport, with a focus on roads, public transport and active transport in particular.

Boards also provided feedback on the key consultation topics, including Investing in Auckland, Fixing Transport, Sharing Rates (UAGC and business rates), Development Auckland, and proposed levels of service changes.

Local boards welcome the proposed local board capital fund but a number of boards do notagree with the funding source being the community facilities partnership scheme. Thisscheme enables boards to collaborate and leverage significant third party funding.

Key local board priority capital projects are contained in the attachments to this report, but asummary will be provided prior to the Budget Committee meeting.

Recommendation/sThat the Budget Committee:

a) consider feedback from local boards on the LTP Consultation Document and keyadvocacy areas before making decisions on the draft Long-term Plan 2015-2025.


24/316

Item 10

Budget Committee

07 May 2015


Comments6. In early 2014 local boards undertook extensive engagement with their communities on their

local board plans. The Local Government (Auckland Council) Act 2009 requires that thepriorities identified in the 2014 local board plans should inform the development of the Long-term Plan 2015-2025.

7. With reference to the community priorities identified in their local board plans, and publicfeedback received from or on their local area on the proposed LTP, local boards haveconsidered feedback on the LTP Consultation Document and have identified key advocacyareas. Local boards discussed their feedback and advocacy with the Budget Committee on24, 28 and 29 May. These discussions followed on from earlier discussions in October lastyear where local boards provided feedback on the Mayoral Proposal for the LTP andproposed LTP priorities. The areas of commonality across the local boards are detailedbelow with more overview information summarised in Attachment 1. Individual local boardfeedback and advocacy are included in Attachment 2.

Invest ing in A uck land

8. While some boards support the proposed average 3.5 per cent rates increase and others

support a lower average rates increase, overall they would like to see increased focus onmaintaining investment through efficiency savings and seeking other sources of funding,with less focus on service level cuts.

Fix ing Transport

9. Overall boards support investment in transport that is over and above what is in the Basictransport network, although not all supported the Auckland Plan transport network. Mostboards would like more focus on public transport and active transport. There is no clearpreference for a particular funding option, with a variety of concerns raised for both options.

Sharing rates

10. The majority of local boards that provided feedback on the UAGC supported the UAGC

remaining at its current level of $385. Four boards expressed support for a higher UAGCand no local boards supported a lower UAGC.

11. Those boards that provided feedback on the reducing business differential did not supportthis decrease, with four boards supporting a suspension of the reduction for three years.

Development Auck land

12. Of those boards that provided feedback on the proposal to establish Development Auckland,the majority supported the proposal.

Propo sed levels of service changes

13. Some boards have provided very detailed feedback on service level proposals, these can be

found in the attachments to this report. The proposals regarding library hours, communitydevelopment, chemical weed spraying, planting, and general parks maintenance receivedthe most feedback from boards.

Lo cal prior i t ies

14. Local boards have identified particular projects or initiatives that are a priority for progressionin their local area, for which they would like the Governing Body to make a decision tosupport.

15. Local boards have prioritised these local projects or initiatives with reference to their localboard plans and other prioritisation tools in council such as the Community Facility NetworksPlan.

16. Key themes across local priorities are:

Boards believe continued investment in sports fields, recreational facilities and multi-use community facilities is important for the liveability of Auckland.


25/316

I t e m 1

0

Budget Committee

07 May 2015


The development of greenways remains a key focus with a number of boardsadvocating for a regional fund for implementation.

There is support across a number of boards for planning and action to improve waterquality in the Manukau Harbour.

A number of boards are advocating for the acquisition of land for open space and

recreation in growth areas. Spatial planning and town centre development continue to be important areas of focus

for boards.

With regards to CCOs, transport remains the highest priority for boards, with focus onroads, public transport and active transport in particular.

Key local board priority capital projects are contained in the attachments to this report, but asummary will be provided prior to the Budget Committee meeting.

Other propos a ls

Local boards welcome the proposed local board capital fund but a number of boardsdo not agree with the funding source being the community facilities partnershipscheme. This scheme enables boards to collaborate and leverage significant thirdparty funding.

Consideration


17. The purpose of this report is to provide an overview of local board feedback on the LTP

Consultation Document and key advocacy areas for input into development of the LTP.


18. Many local board decisions are of importance to Māori and there is a need to continue tobuild relationships between local boards and relevant iwi. The local board plans have beendeveloped through engagement with the community, including Māori, and this has formedthe basis for local priorities input into developing the LTP.

Implementation19. Following Budget Committee decisions on LTP budgets in May, local boards will develop

their local board agreements for adoption at business meetings in June.

Attachments

No. Title Page

A Attachment One contains an overview of local board feedback on the LTPConsultation Document and key advocacy areas.

27

B Attachment Two contains individual local board feedback on the LTPConsultation Document and advocacy. (Under Separate Cover)

Signatories

Author Anna Bray - Policy and Planning Manager - Local Boards


26/316

Item 10

Budget Committee

07 May 2015


Authorisers Matthew Walker - General Manager Financial Plan Policy & Budgeting

Karen Lyons - Manager Local Board Services

Sue Tindal - Chief Financial Officer


27/316


I t e m 1

0

Budget Committee

07 May 2015



28/316

AttachmentA

Item 10

Budget Committee

07 May 2015



29/316


I t e m 1

0

Budget Committee

07 May 2015



30/316

AttachmentA

Item 10

Budget Committee

07 May 2015



31/316


I t e m 1

0

Budget Committee

07 May 2015



32/316

AttachmentA

Item 10

Budget Committee

07 May 2015



33/316


I t e m 1

0

Budget Committee

07 May 2015



34/316

AttachmentA

Item 10

Budget Committee

07 May 2015



35/316


I t e m 1

0

Budget Committee

07 May 2015



36/316

AttachmentA

Item 10

Budget Committee

07 May 2015



37/316


I t e m 1

0

Budget Committee

07 May 2015



38/316

AttachmentA

Item 10

Budget Committee

07 May 2015



39/316


I t e m 1

0

Budget Committee

07 May 2015



40/316

AttachmentA

Item 10

Budget Committee

07 May 2015



41/316


I t e m 1

0

Budget Committee

07 May 2015



42/316

AttachmentA

Item 10

Budget Committee

07 May 2015



43/316


I t e m 1

0

Budget Committee

07 May 2015



44/316

AttachmentA

Item 10

Budget Committee

07 May 2015



45/316


I t e m 1

0

Budget Committee

07 May 2015



46/316

AttachmentA

Item 10

Budget Committee

07 May 2015



47/316


I t e m 1

0

Budget Committee

07 May 2015



48/316


49/316

I t e m 1

2

Budget Committee

07 May 2015

Long-term Plan 2015-2025 – Draft Tūpuna Maunga Operational Plan 2015/16 Page 49

Long-term Plan 2015-2025 – Draft Tūpuna Maunga Operational Plan2015/16

File No.: CP2015/07500

Purpose1. This report provides the necessary information to enable the Budget Committee to make a

decision on the 10 year budget for the Draft Tūpuna Maunga Operational Plan 2015/16.

Executive Summary2. The Mayor’s Long-term Plan proposal announced in August 2014 included a commitment to

provide a reasonable level of funding / support to reflect the projected cost of co-governanceentities.

3. The Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014 (the Act) requires

the Tūpuna Maunga o Tāmaki Makaurau Authority (Maunga Authority) and the council toagree an annual operational plan through the council’s Long Term Plan or Annual PlanProcess.

4. The Draft Tūpuna Maunga Operational Plan 2015/16 was adopted through unanimousdecision by the Maunga Authority at Hui 4 on 1 December 2014. It sets out a high level 10year work programme with more detailed information for each maunga for the first threeyears of the Long-term Plan (that is, 2015/16, 2016/17 and 2017/18).

5. The draft Long-term Plan 2015-2025 proposed $45,671,879 capital funding over 10 yearsand $30,733,031 operating funding over 10 years for the Tūpuna Maunga under the Co-Governance Entities Theme. This funding is set at a regional level and deemed by theMaunga Authority as the minimum funding necessary to commence restoration and visitor

management. The Proposed Net Operating Expenditure incorporated the funding from theOpen Space and Volcanic Cones Targeted Rate Reserve ($2.5 million), which has beenapplied to fund activities over the first six years of the LTP 2015-2025.

6. Feedback was received from one organisation, 18 individuals representing 13 organisationsand 24 members of the public.

7. The uniqueness and significance of the Tūpuna Maunga and submitters’ understanding oftheir spiritual, cultural, historic heritage, geological, landscape and recreation values wasevident in the majority of submissions.

8. There was overall strong support for the new co-governance arrangement, improving theprotection and enhancement of values associated with the Tūpuna Maunga, the Draft

Tūpuna Maunga Operational Plan 2015/16, the Integrated Management Plan and theproposed 10-year budget.

9. There was a common desire noted by submitters to see community partnerships andeducation and visitor experience brought forward to be a short term operational expenditurepriority. Council staff advise that the actions identified by submitters for these areas couldbe delivered within existing operational budgets and that no reprioritisation of budgets isrequired.

10. The Governing Body and the Maunga Authority held joint deliberations on the 23 April 2015at which the public feedback received was discussed.

11. The Maunga Authority will adopt the Draft Tūpuna Maunga Operational Plan 2015/16 at its 8June hui once the Long-term Plan 2015-2025 budgets have been finalised.

Recommendation/s


50/316

Item 12

Budget Committee

07 May 2015


Recommendations are included in the Mayoral Report.

CommentsOverview of Draft Tūpuna Maunga Operational Plan 2015/16

12. The Tūpuna Maunga hold a paramount place in the historical, spiritual, ancestral andcultural identity of Ngā Mana Whenua o Tāmaki Makaurau. On 29 August 2014, the NgāMana Whenua o Tāmaki Makaurau Collective Redress Act 2014 (the Tāmaki CollectiveRedress Act) came into effect. The Act vested ownership of the Crown owned-land in 14Tūpuna Maunga in the Tūpuna Taonga o Tamaki Makaurau Trust, on the basis that theyare held in trust for the common benefit of the iwi/hapū of Ngā Mana Whenua o TāmakiMakaurau and the other people of Auckland.

13. The Tūpuna Maunga o Tāmaki Makaurau Authority (Maunga Authority), which comprises sixrepresentatives from Ngā Mana Whenua o Tāmaki Makaurau, six representatives from thecouncil and a non-voting Crown representative, is the administering body for the Tūpuna

Maunga. The Maunga Authority is independent of Council. Council is responsible for theroutine management of the Tūpuna Maunga and the administered lands under the directionof the Maunga Authority, and for the costs incurred both in carrying out this function and thefunctions under the Act and the Reserves Act 1977.

14. The Act requires the Maunga Authority and the council to agree an annual operational plan.The operational plan provides a framework in which the council will carry out its functions forroutine management of the Tūpuna Maunga and administered lands for that financial yearand provides indicative information for the following two years. The annual operational planmust (under the Act), be prepared and adopted concurrently with the council’s Long TermPlan or Annual Plan and must be included in summary form.

15. The Maunga Authority adopted the Draft Tūpuna Maunga Operational Plan 2015/16 at Hui 4

on 1 December 2014. This was summarised in Section 12 of the Auckland Council Long-term Plan 2015-2025 supporting information and a link to the Draft Tūpuna MaungaOperational Plan 2015/16 was made available to the public.

16. The Draft Tūpuna Maunga Operational Plan 2015/16 is one of the five activities within theCo-Governance Entities theme in the Long-Term Plan 2015-2015.

Overview of the proposed 10 year budgets

17. The Draft Tūpuna Maunga Operational Plan 2015/16 / draft Long Term Plan 2015-2025budget proposes $45,671,879 capital funding over 10 years and $30,733,031 operatingfunding over 10 years. The Proposed Net Operating Expenditure incorporates the full$2,500,000 of the legacy Open Space and Volcanic Cones Targeted Rate Reserve to helpfund activities over the first 6 years of the LTP 2015-2025. A summary of plannedexpenditure and funding is provided in Attachment A.

18. The Draft Tūpuna Maunga Operational Plan 2015/16’s focus is on reversing the current levelof degradation evident over these iconic Auckland landscapes, resourcing the developmentof an Integrated Management Plan for the 14 Tūpuna Maunga and undertaking capitalprojects to enhance the visitor experience and improve the awareness of associations ManaWhenua have with the Tūpuna Maunga and values of the Tūpuna Maunga.

19. There is an increase in the funding set aside for capital projects in the last three years of theLong-term Plan 2015 – 2025. This recognises the time required to undertake strategicplanning for the Tūpuna Maunga (including completing the integrated management plan)and the project planning requirements (including resource consents and Heritage New

Zealand approvals) to deliver the agreed works programme.


51/316

I t e m 1

2

Budget Committee

07 May 2015


20. The draft plan was prepared with the overall council funding in mind. The Maunga Authorityconsider it the minimum amount necessary to respect these taonga, to restore the livingconnections and to create and manage them as internationally significant visitordestinations.

Summary of Feedback

21. The importance of the Tūpuna Maunga to Mana Whenua, organisations, communities andindividuals was clearly evident in the submissions received. While what submitters valueddiffered, there was a common desire to see an improvement in the protection andenhancement of the Tūpuna Maunga. There was a level of optimism in a number ofsubmissions that the new ownership and governance regime for the Tūpuna Maunga andthe proposed work programme and associated budgets will achieve positive outcomes.

Net Operating Expenditure

22. Submitters supported the need for a long-term vision for the Tūpuna Maunga. The majority

of the submitters expressed a desire to be able to work with and influence decisions inrespect of the Tūpuna Maunga. Submissions received from two local boards and theCornwall Park Trust highlighted that by working together it would be possible to improve theconnectivity of the Tūpuna Maunga with the broader cultural landscape and open spacenetwork and provide a co-ordinated and consistent approach to managing visitor experienceand behaviour.

23. Funding to enable the development of the Integrated Management Plan is proposed as apriority within the first three year period of the Long Term Plan 2015-25. The Maunga Authority will shortly consider a proposal to complete the plan over a 12 month period. Thedevelopment of this plan, which includes two sets of public notification, will enable ManaWhenua, individuals, communities and organisations to input into decisions on the futuremanagement of the Tūpuna Maunga and will define a vision for the Tūpuna Maungacollectively and individually.

24. Many submitters highlighted the importance of bringing community partnerships (includingvolunteering) and education and visitor experience forward to be a short-term operationalexpenditure priority. The Maunga Authority considers the building of partnerships andstakeholder relationships to be important for achieving its vision for the Tūpuna Maunga.This work stream will be a key priority over coming months.

25. A number of submissions made reference to maintenance of existing infrastructure.Renewal projects on specific maunga are prioritised based on a number of factors such asthe condition of the asset, health and safety issues, and whether the infrastructure is stillnecessary and appropriate. In the future this will be guided by the Tūpuna Maunga Values,

Integrated Management Plan, the Visitor Management Plan and the management principles.The upgrade and development of visitor related infrastructure is highlighted as a priority inthe Draft Tūpuna Maunga Operational Plan 2015/16, and is recognised as an investment inthe economic development of the Tupuna Maunga as visitor destinations.

26. Four of the submitters representing the Friends of Maungawhau noted the need for adedicated on-site ranger service to adequately protect the maunga and facilitatevolunteering. They noted concern about the current ‘thin line’ of front line staff. The Councilis in the process of reviewing the operational roles required to deliver the Maunga Authority’swork programme and this feedback will be taken into consideration as part of this review.

27. Council staff advice is that the actions identified by submitters, if supported by the Maunga Authority, can be delivered within existing operational budgets and that no changes to the

proposed 10 year operational expenditure budget is required.


52/316

Item 12

Budget Committee

07 May 2015


Capital Projects

28. Visitor management in terms of pedestrian and vehicle access was a common theme insubmissions. There was strong support for the continuation of casual pedestrian accesswith appropriate controls and infrastructure to protect sites of significance. There weresubmissions received for and against changes to private vehicle access on the TūpunaMaunga. At Hui seven, the Maunga Authority resolved to support restricting vehicle access

to Maungawhau / Mt Eden’s tihi (summit), with the implementation subject to a further reporton the funding requirements. This issue will be one of many considered more generally inthe context of developing an Integrated Management Plan. Capital projects associated withimplementing a policy position will be budgeted for as part of this project.

Other

29. Much of the feedback focused on non-budget related matters such as:

The design and location of visitor infrastructure such as way-finding and interpretativesignage and the track network,

Removal of redundant infrastructure by third parties,

The formalisation of the relationship between the Maunga Authority and The Friends ofMaungawhau, and

Specific mechanisms to enable greater community and stakeholder involvement indecisions, improve communication of Maunga Authority decisions and strengthenpartnerships.

Consideration


30. The Maunga Authority includes members from Maungakiekie-Tamaki Local Board, OrakeiLocal Board and Albert-Eden Local Board.

31. Local Boards with Tūpuna Maunga within their boundaries were advised about the DraftTūpuna Maunga Operational Plan 2015/16 and the opportunity to submit or attend the HaveYour Say Day event. Representatives from two local boards attended the Have Your SayDay Event.

32. The final LTP will be adopted by 1 July 2015 and agreed actions will apply across thecouncil group including local boards.


33. The Maunga Authority is comprised of two representatives from Marutuahu ropu entity, tworepresentatives from Ngāti Whatua ropu entity and two representatives from the Waiohua

Tamaki ropu entity.34. All 13 iwi/hapu that comprise the Tūpuna Taonga o Tāmaki Makaurau Trust were advised

about the Draft Tūpuna Maunga Operational Plan 2015/16 and the opportunity to submit orattend the Have Your Say Day event. Two Mana Whenua Chairs attended the Have YourSay Day Event.

35. The Ngā Mana Whenua o Tamaki Makaurau Collective Redress Act 2014 requires theMaunga Authority in exercising its powers and carrying out its functions to have regards tothe spiritual, ancestral, cultural, customary and historical significance of the maunga to Ngā Mana Whenua o Tamaki Makaurau. This requirement has a significant influence on the wayin which decisions are made by the Maunga Authority.

Implementation36. Once the Long-term Plan 2015-2025 has been finalised, the Maunga Authority will review

and adopt the Draft Tūpuna Maunga Operational Plan 2015/16 at Hui 9 on the 8 June 2015.


53/316

I t e m 1

2

Budget Committee

07 May 2015


Attachments

No. Title Page

A Summary of Indicative Funding requirements 55

Signatories

Author Anna McElrea - Senior Parks and Recreation Advisor

Authorisers Matthew Walker - General Manager Financial Plan Policy & Budgeting

Grant Taylor - Governance Director

Sue Tindal - Chief Financial Officer


54/316


55/316


I t e m 1

2

Budget Committee

07 May 2015



56/316


57/316

I t e m 1

3

Budget Committee

07 May 2015

Long-term Plan 2015-2025 - Mayor's Report Page 57

Long-term Plan 2015-2025 - Mayor's Report

File No.: CP2015/07647

PurposeThis report sets out the Mayoral proposal for the final Long Term Plan 2015-25 (LTP) forconsideration and decisions by the Budget Committee.

Executive Summary

This report is leading into the final stages of agreeing the LTP 2015-25. This process startedwell over a year ago.

The council is in a strong financial position with debt levels well within our prudential ratiosand a track record of rates revenue increases well below those projected by the legacycouncils and the ATA.

It is important that this strong financial position is maintained in the years ahead and thedraft LTP resets the financial parameters from the LTP 2012-22. Rates revenue increaseswere reduced from 4.9% per annum to 3.5%, projected debt from $13.7 billion to $10.8billion and the interest to revenue ratio capped at 12%.

The capital programme was significantly reduced from previous projections to achieve theselower ratios and in particular transport capex was cut back to a basic level of service, with aclear question to Aucklanders on the level of transport investment they supported and how

they would be prepared to pay for it.

Following record levels of feedback and participation in consultation the council now needsto make the decisions that will impact on the future of Auckland.

I am supporting the Auckland Plan Transport Network level of investment and motorwaytolling as the mechanism to pay for this. We now need to engage with government tosupport this approach. While these negotiations are underway I am supporting an interimtransport programme of additional capital expenditure of $523 million over 3 years, paid forby an interim transport levy of less than $2 per week for non-business ratepayers and $3per week for business ratepayers.

Other budget areas are proposed to remain largely unchanged from the draft with only a

small number of exceptions covered in the recommendations below. The rating policy was also a major consultation question and on the two big issues I am

proposing leaving the UAGC at $385 (particularly in light of the proposed transport levy) andslowing down the reduction in the business differential to limit the impact on residentialratepayers to 0.5% per annum

Other fees, charges and policies remain largely as proposed for consultation. The fewchanges that are proposed are covered in the recommendations below and includescontinuing to subsidise the Hauraki Gulf Islands refuse collection charges.


58/316

Item 13

Budget Committee

07 May 2015


Recommendation/s

1. That the Budget Committee recommend to the Governing Body that the transportbudgets for the final LTP be based on the draft budgets, adjusted for the updates set

out in the staff reports, with the following changes:

a. Inclusion of an interim transport capex budget for the first three years of the

LTP as follows:

2015/16 2016/17 2017/18

Additionaltransport capex

$170 million $174 million $179 million

b. Funding of the council share of the interim transport programme to be by way of

a Transport Levy (targeted rate) set at $99 per SUIP for non-businessratepayers and $159 per SUIP for business ratepayers.

2. That the Budget Committee recommend to the Governing Body that the Mayor and

Chief Executive engage with the government to enable the implementation of a

motorway tolling system by 2018/19 to fund the implementation of the Auckland Plan

Transport Network for the 2018-28 LTP.

3. That the Budget Committee recommend to the Governing Body that the budget

(excluding transport) for the final LTP be based on the draft budgets, adjusted for the

updates set out in the staff reports, and to incorporate the following changes andspecific decisions:

Auckland Development (Refer Attachment A to the agenda report)

a. The funding of the Vos Yard project from the Heritage Acquisition fund be

referred to the Auckland Development Committee, as there is no LTP budget

impact

Economic and Cultural Development (Refer Attachment A to the agenda report)

b. The additional capital expenditure of $6 million for Grid AKL be approved on the

basis that the consequential opex be managed through the existing ATEED

operating budget

Environmental Management and Regulation (Refer Attachment A, A4 to the agendareport)

c. A standardised annual inorganic collection service (on-property, booked in

advance) to be implemented and paid for via the solid waste targeted rate.

d. Provide up to $9 million per annum (an increase of $3 million pa) of financial

assistance for the Retrofit your Home programme but with a maximum debt

exposure of $35 million.


59/316

I t e m 1

3

Budget Committee

07 May 2015


Governance and Support (Refer Attachment A, A6 to the agenda report)

e. Increase the funding of the Parakai Reserves Board by $279,000 opex (ratesimpact of $169,000) and $50,000 capex over 10 years as set out in the staff

report

f. Increase the funding of Ngati Whatua Orakei Reserves Board by a total of

$811,000 opex over 10 years as set out in the staff report

g. Increase the funding of COMET by $235,000 per annum

Parks Community and Lifestyle (Refer Attachment A, A5, A8, A9 to the agenda report)

h. Note that an Empowered Communities approach will be implemented during

the 2015/16 financial year with final detail of the proposed Community

Development and Safety operational model to be presented to the Regional

Strategy and Policy (RSP) committee on 4 June 2015.

i. Note that the associated savings target of $1.6m in FY 2015/16 and $2.0m pa

each year thereafter, until 2025, has been included in the Budget and that any

necessary review of implementation and related budget can be undertaken as

part of the 2016/17 Annual Plan process.

j. Provide funding of $1.9 million over the first four years of the LTP to Surf

Lifesaving Northern Region for the purposes of redevelopment of the highest

priority surf clubs in line with their request

k. Increase the regional grants budget by $350,000 per annum in line with the

2014/15 level of funding

l. Provide funding of $300,000 opex in year 1 of the LTP, $100,000 opex in year 2

and $600,000 capex in year 3 for a World War 1 memorial in the Domain,

noting that this will allow applications for funding from other sources.

m. Provide a $350,000 operating grant (from existing provision in the budget) to

the James Wallace Arts Trust for a further year and seek a full report back to

the Finance and Performance Committee on options for financial sustainability

of this Trust.

n. Provide a budget of $360,000 for years 1 and 2 of the LTP and $110,000 for

year 3 for emergency housing, homelessness and rough sleeping responses.

Water Supply and Wastewater (Refer Attachment A to the agenda report)

o. Confirm the budgets and water and wastewater pricing increases as set out in

the updated budgets

Local Board Discretionary Capex

p. Provide a new Local Board discretionary capex fund of $10 million per annum


60/316

Item 13

Budget Committee

07 May 2015


noting that this will incorporate the existing Facilities Partnership Fund.

q. Approve the following parameters for this fund:

i. The fund may be managed as a three year amount

ii. Local Boards may use the fund to build council owned assets, add to anexisting council funded renewal or new capital project, work in

partnership with an external provider or seed fund a community project

r. Ask staff and Local Boards to develop a formula for allocation and criteria for

qualifying projects and report back to the Finance and Performance Committee

Maori Transformational Shift (Refer Attachment A7 to the agenda report)

s. Note that further work on the council funded activities and budgets that

contribute to Maori wellbeing in the LTP has identified $186 million of

contribution over the 10 years (including the budgets for co-governanceentities).

4. That the Budget Committee recommend to the Governing Body the adoption of the

following changes to fees and charges for 2015/2016:

a) standardised licensing fees for street trading across Auckland as included in

Attachment B1 to the agenda report

b) standardised rental fees for street trading across Auckland as included in

Attachment B1 to the agenda report, which include the following amendments tothe draft proposal:

an additional six month rental option for seasonal outdoor dining operators

simplified rent for mobile vendors based on typical size and hours, with extra-

large vendors being charged an over-size fee

c) any increases to street trading charges (licence fee and rent combined) for

existing licensees resulting from the implementation of a) and b) above be capped

at $500 per licensee per year for three years starting 2015/2016

d) standardised cemetery fees across Auckland as included in Attachment B2 to the

agenda report

e) standardised event permit fees across Auckland as included in Attachment B3 to

the agenda report

f) standardised fees for the remainder of the environmental health and licensing

services as included in Attachment B4 to the agenda report

g) fees and charges for building control, resource consents and property information

as included in Attachment B5 to the agenda report

h) fees and charges for the following services


61/316

I t e m 1

3

Budget Committee

07 May 2015


i. animal management (Attachment B6 to the agenda report)

ii. food premises (Attachment B7 to the agenda report)

iii. Health protection and hairdresser’s licensing (Attachment B8 to the agenda

report)

iv. Harbourmaster service (Attachment B9 to the agenda report)

v. Solid waste bylaw licensing (Attachment B10 to the agenda report).


following decisions on solid waste services, targeted rates and charges:

(Refer Attachment A to the agenda report)

a) Introduction of a new annual, on-property, pre-booked inorganic collection service

from 2015/2016 to be funded from the waste management targeted rate

b) The targeted rate for solid waste services, including the annual inorganic service, in

the former council areas be standardised where services, costs and funding

methods are similar, for 2015/2016 as follows:

i. Auckland City (including Hauraki Gulf islands) and Manukau City

(adjusted as appropriate in Auckland City to provide for the rates where a

ratepayer has opted out of either or both of refuse and recycling services)

ii. North Shore and Waitakere

iii. Rodney

iv. Franklin and Papakura (adjusted as appropriate in rural Franklin where a

ratepayer does not receive a recycling service).

c) That the costs of providing solid waste services to the Hauraki Gulf Islands in

excess of targeted rates revenue from the area be met from the solid waste

targeted rates for all of the Auckland region rather than just the former Auckland

City area.

d) Staff continue to work with the local communities of the Hauraki Gulf Islands to

reduce costs and rationalise services where possible

e) User charges billed to the property owner for refuse for the former Auckland City

(including the Hauraki Gulf Islands) and Manukau City areas be gradually

introduced from 2017/2018 financial year

f) Recycling services continue to be funded from the waste management targeted

rate

g) The new organic collection to be funded from the waste management targeted ratewhere the service becomes available

h) Standardised existing bag charges at competitive rates in areas where the service


62/316

Item 13

Budget Committee

07 May 2015


is provided by the council.


following changes to Housing for Older Persons rentals as set out below:

(Refer Attachment D to the agenda report)

a) the rent on the council’s Housing for Older Persons units be set at 30 per cent of

tenants’ pre-tax income

b) the rent be adjusted annually based on tenants income

c) for any given year, changes to annual rents (including increases and decreases) for

existing tenants resulting from a) above be capped at $10 per week implemented in

$5 steps at six month intervals.

7. That the Budget Committee recommend to the Governing Body:

(Refer Attachment E to the agenda report)

a) that the proposed contributions policy be amended as follows:

i. replace the funding areas for reserve acquisition, reserve development and

community infrastructure with the following four areas: Auckland Wide,

Greenfield, Urban and Rural

ii. replace the stormwater funding areas with the following areas:

Stormwater

Helensville

Manukau

Central

Kumeu / Huapai

Pukekohe /

Waiuku

Warkworth

Manukau

South

Hibiscus Coast

Manukau

West

East Coast

Bays Tamaki WestMahurangi Tamaki East

Waitemata

North Wairoa

Waitemata

West Ararimu

Waitemata

Central

Waitakere

Ranges

Waitemata

Northwest

Urban

Auckland

Manukau North Other


63/316

I t e m 1

3

Budget Committee

07 May 2015


iii. reduce the unit of demand factor for attached dwellings (low rise) to reflect the

lower levels of demand associated with higher density developments

iv. reduce the unit of demand factors for retirement village units and aged care

rooms to exclude costs for sports fields and playground.

v. allow Council the discretion to offer a reduction of contribution charges for

stormwater where developers provide relevant infrastructure.

b) Note that the contributions policy will be updated for the decisions made on

capital expenditure and adopted alongside the Long-term Plan 2015-2025 on 25

June 2015

c) Note that staff will report back on further refinements to the funding areas for

reserve acquisition, reserve development and community infrastructure for

consideration alongside the Annual Plan 2016/2017.

8. That the Budget Committee:

a) agree to undertake a review of Auckland Council's mix of funding sources to inform

the 2016-17 Annual Plan, with the broad objectives of further reducing the

proportion of council revenue funded from rates, maximising the return on council’s

investments and exploring alternative sources of funding, including from the

optimisation of assets that are poorly aligned with council's core business and the

broader strategic growth priorities for Auckland

b) direct the Chief Executive to commence the design of the review and its associated

processes following the release of the Local Government New Zealand FundingReview Final Report in June 2015

c) request that the terms of reference for the review be reported back to the July

meeting of the Finance and Performance Committee.

9. That the Budget Committee recommend to the Governing Body adoption of the

following rates policy decisions for the Long-term Plan 2015-2025:

(Refer Attachment F to the agenda report)

a) a uniform annual general charge of $385 for 2015/16 amended each following

year of the LTP by the amount of the average rates increaseb) that the long-term business differential strategy be amended to achieve a

proportion of general rates collected from business ratepayers of 33.0 per cent for

2015/2016 falling to 25.8 per cent by 2036/2037 in equal steps and that the

differential ratio for business be set annually to reflect this

c) that in line with the amendments to the overall business differential strategy,

Franklin business differential be set at a level which will align with the overall

business sector in 2016/17

d) no further rates transition

e) extension of the city centre programme and targeted rate to 2025, funding the

depreciation and consequential operating expenditure of city centre programmeprojects from the general rate from 2019/2020, and introduction of a city centre

targeted rate of $57.50 per separately used or inhabited part of a property on city


64/316

Item 13

Budget Committee

07 May 2015


centre residents

f) increase Mangere-Otahuhu swimming pool targeted rate to fund free adult entry to

the new Otahuhu swimming pool

g) create a new rating differential for properties with no road access (including

properties currently classified as the sea only access) and set the differential at

0.25 (current sea only access differential)h) rates related policies as proposed in the consultation document:

i. setting Uniform Annual General Charge based on separately used or inhabited

parts of a rating unit

ii. setting the value based general rate using capital value

iii. the general rate differential categories and descriptions

iv. all targeted rates except waste management, transport and those in e and f

above

v. the early payment discount policy

vi. the instalment dates and penalties

i) direct staff to report back with for consideration as part of development of the

Annual Plan 2016/2017 on rating options for:

a. motels and other temporary accommodation

b. Maori freehold land.

j) direct staff to complete further work on rates postponement options as a mechanism

for assisting rating affordability issues and report this back to the Finance and

Performance Committee.

Comments

CONTEXT

10. In August last year when I presented my Mayoral Proposal for the LTP 2015-25, I emphasisedthe need for us to see this LTP as a reset exercise for Auckland Council. It is time to consignto history the priorities and policies of the legacy councils and create our own future based on Auckland as it exists today and the priorities for the amalgamated region. We have our Auckland Plan to guide the priority setting and we have a set of financial parameters that drive

the need to prioritise. There are some tough decisions we need to make if we want to meetcommunity expectations of financial prudence (low rates and debt) while investing in ourgrowth and in particular fixing the transport problem.

11. Despite the popular rhetoric to the contrary we are in excellent financial shape and our trackrecord since the start of this council is extremely good.


65/316

I t e m 1

3

Budget Committee

07 May 2015


Note: Adjusted for growth

12. Our increases in rates revenue have been significantly below the projections of the legacycouncils and the ATA, and we are operating well below our policy limit for the “Interest to

Revenue” ratio. We have maintained our AA credit rating, the best in the country apart fromthe government, and our draft LTP was well received by the credit rating agencies.

13. In addition our core costs have been well contained, allowing us to apply increases in revenueto better outcomes for Aucklanders.


66/316

Item 13

Budget Committee

07 May 2015


14. This is a financial position we should be proud of and one we need to maintain going forward.

The Draft 10 year budget

15. The draft 10 year budget re-set our future financial parameters from the previous LTP by:

Reducing projected average rates revenue increases from 4.9% to 3.5% per annum

Reducing projected debt levels at the end of the 10 years by $2.9 billion

Keeping our interest to revenue ratio at 12% or less

16. To achieve this we needed to reduce and re-focus our capital programme and also reduce ouroperating costs through some small reductions to levels of service. We have also continued todrive efficiency savings from the organisation.


67/316

I t e m 1

3

Budget Committee

07 May 2015


17. This baseline budget for the LTP gave a much reduced debt profile and more affordableincreases in rates revenue but this came with a significant reduction in our investment intransport infrastructure.

18. Against this backdrop, we have introduced to Aucklanders the biggest debate for decades – how much are we prepared to invest in our transport infrastructure and how do we want to payfor it? This will be the biggest decision, among the many that we need to make, and the onethat will have the biggest impact on the future of Auckland. It is the one that this Council and itsleadership will be remembered by.

CONSULTATION

19. Because of the significance of the decisions in this LTP it was important that we reached asmany Aucklanders as possible through the consultation process. A huge effort, involving largenumbers of our hard working and dedicated staff, has gone into making this the biggestresponse rate in any LTP process in Auckland or anywhere else in New Zealand.

20. The awareness raising campaign included: Delivering the LTP summary to every household

A full media campaign

Attendance at all major events around Auckland during the period e.g. Pasifika,

Laneways, A and P shows etc

Specific engagement events - from local community events through to the Auckland

Conversations event

Targeted stakeholder communications and social media

21. We also replaced our traditional hearings process with 37 “Have Your Say” events whichattracted over 1,400 people. For the first time in a LTP process we utilised social media tocollect feedback as well as raise awareness.


68/316

Item 13

Budget Committee

07 May 2015


22. By the time the consultation period closed we had received 27,383 written submissions whichprovided 260,000 feedback points, The 1,412 people who attended Have Your Say eventsprovided 8,600 feedback points along with 1,600 feedback points from the 900 people whoattended local community events. In addition to those feedback channels 1,354 pieces offeedback came through digital channels.

23. The transport question is of such significance that we agreed a statistically robust surveywould be carried out in time to inform our decision making. Colmar Brunton was engaged todeliver this survey of just over 5,000 people.

24. All of this material had been analysed and summarised by our staff and we have beenprovided with a detailed set of reports which give us a very good overview of community viewson all of the topics on which we will be making decisions.

25. Key messages coming through from this feedback include:

The community expects financial prudence

They want us to continue to invest in the things that they value (although not surprisingly

what they value is quite diverse)

There is significant support for increased investment in transport

The vast majority are prepared to pay more to have the transport issues addressed

BUDGET PROPOSAL

26. At the end of any LTP or Annual Plan consultation process, most councils are faced with twocompeting messages from feedback. There is a clear message that rate increases and growthin debt should be minimised alongside messages about where the community want morespending or increased service. Our difficult task is to balance these messages and create abudget that does its best to deliver financial prudence while providing the infrastructure andservices that Aucklanders, current and future, need and value.

27. My starting point for this final round of the budget decisions is relatively minimal change fromour consultation budget with the clear exception of transport.

28. I am committed to delivering the level of investment as set out in the Auckland Plan TransportNetwork. In order to do this and keep our rates affordable we need the support of governmentto raise the revenue required. As part of this proposal I am seeking your endorsement to enterinto further negotiations with government on the option of tolling the motorway network toprovide the revenue stream. Realistically, the revenue stream and the increased level ofinvestment that it will fund could not commence until 2018/19 (year 4) of the plan.

29. In the interim period, I believe that we have a strong mandate to increase the transport budgetsfrom the “Basic“ level included in the consultation document, to a more aggressive level ofinvestment and that we should fund this additional amount via an interim targeted transport levy.

30. I have also consistently re-iterated my desire to get the average rates revenue increase downcloser to my starting point of 2.5% and I think that is even more important if we are to introduce aninterim transport levy. The organisation has responded to this message and in the attached staffreport ( Attachment A to the agenda report), you will see that this has been achieved for 2015/16. A number of changes in underlying assumptions and budgets have been described. The net resultof all of these changes and the funding of the interim transport programme by a fixed interimtransport levy of $99 per SUIP for non-business ratepayers and $159 per SUIP for businessratepayers, allows us to achieve an updated average rates revenue increase of 2.5%.

Transport (Attachments A, A1, A2 to the agenda report)


69/316

I t e m 1

3

Budget Committee

07 May 2015


31. Aucklanders have clearly indicated their expectation that we address the transport issues. Amajority of both those that responded in the consultation and those that took part in the surveyshow a preference for a higher level of investment and a willingness to pay.

32. In the long-term, to address the transport problem we need an extra revenue stream andgovernment support with tools to generate that revenue. My preference is for motorway tolling and

the recommendations in this report seek an endorsement to enter into that conversation with thegovernment. Any solution agreed with government would not be effective until 2018/19 andwould be reflected in the next LTP. In the interim, it is clear the basic transport programme will notbe acceptable to Aucklanders and I am proposing the following approach:

i. Additional transport capex of $170 - $179 million per annum for the first three years - a total of

$523 million. Of this the Council will fund approximately $300 million and the rest will be

funded by NZTA subsidy. In the attached staff reports ( Attachment A2 to the agenda report )

you will see Auckland Transport have prepared an initial prioritisation of this funding. I am

supportive of the additional investment for public transport, walking and cycling, safety

programmes and the major projects of AMETI and SMART.

However, I believe it is important that this additional funding is of benefit to the whole region asall of the region will be paying. While in this LTP we will be initially approving the amount offunding we also need to give a steer to Auckland Transport on our strategic priorities.I would like to see $10 million over the three years for road sealing in Rodney (instead of the$6 million currently allocated).Lake Road is currently not in the interim programme – some minor improvements will be ableto be funded and we need to ensure that some priority is given to these. The Auckland PlanTransport network would this project prioritisedThere are several important projects where we need to work collaboratively with NZTA andgovernment and to continue strong advocacy for prioritisation i.e.

- Northern Busway extension to Albany – we have provided funding to deliver an extra

busway station between Constellation and Albany on the assumption that NZTA willconstruct the busway extension during the period of the LTP

- North-Western busway – this project is subject to funding within the Auckland Plan

Transport Network and consequent support from NZTA

- Penlink – funding to complete the Notice of Requirement process is included in the

interim programme but construction is subject to further work with the governemnt

- Pukekohe electrification – this is an important project for the south which we need to

strongly advocate to government.

ii. To fund this programme of work I am proposing an interim transport levy (targeted rate). I

believe a clearly identified fixed amount, identified as an interim transport levy, would besupported by the majority of Aucklanders. This amount, if applied equally across all ratepayers

would be $2 per week ($104 per annum) per SUIP. During earlier discussion around a

possible targeted rate there seemed to be a view that applying a differential for business would

be a preference. For the purpose of this exercise a differential of 1.6 has been used which is

the equivalent of the tax benefits that business receive for this cost. This results in an interim

transport levy for business ratepayers of $159 per SUIP ($3 per week) and an interim transport

levy for non-business ratepayers of $99 per SUIP (less than $2 per week).

Auckland Development (Attachment A to the agenda report)

33. The consultation document identified a funding envelope requiring a significant saving in ourplanning activity. I am still comfortable with this approach and am proposing no changes.


70/316

Item 13

Budget Committee

07 May 2015


34. There is a specific request for budget for the Vos Yard development – proposing to utilise theHeritage Acquisition fund. While I support this in principle – it is not a LTP decision and I proposethat the request be referred to the Auckland Development Committee for consideration.

Economic and Cultural Development (Att

Documents

Budget Committee - May 2015