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

 

Date:                      

Time:

Meeting Room:

Venue:

 

Thursday, 8 May 2014

9.30am

Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

 

Budget Committee

 

OPEN ADDENDUM 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 Chris Fletcher, QSO

Cr George Wood, CNZM

 

Cr Penny Hulse

 

 

Cr Denise Krum

 

 

Cr Mike Lee

 

 

(Quorum 11 members)

 

 

 

Mike Giddey

Democracy Advisor

 

7 May 2014

 

Contact Telephone: (09) 307 7565

Email: mike.giddey@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 

 


Budget Committee

08 May 2014

 

 

ITEM   TABLE OF CONTENTS                                                                                        PAGE

    

13        Local Board Agreements 2014/2015 update                                                               5

16        Mayor's Proposal for the final Annual Plan 2014/2015                                           11 

 

      


Budget Committee

08 May 2014

 

 

Local Board Agreements 2014/2015 update

 

File No.: CP2014/07466

 

  

 

Purpose

1.       This report provides an update on the content of local board agreements for 2014/2015 in order to finalise budgets for the Annual Plan 2014/2015.   This includes a summary of:

i)      local submissions on the draft annual plan 2014/2015; and

ii)     local board budgets for 2014/2015.

2.       This report also outlines next steps in the Annual Plan 2014/2015 process.

Executive Summary

3.       1,967 local submissions were received through consultation on the draft Annual Plan 2014/2015 of which a high number of submissions were raised regarding Michaels Avenue Reserve and Waiheke community swimming pool.

4.       Following consultation, all local boards held business meetings between 8 and 17 April to reprioritise budgets for 2014/2015 and review advocacy areas.

5.       All 21 local boards agreed a balanced budget for 2014/2015 and outer years that reflects the allocation of decision-making, with some budget issues noted in Table One. 

6.       Local boards also confirmed a set of advocacy areas.  A full list of these are provided in a separate report on today’s agenda for consideration.

7.       Local board and Budget Committee discussions were held on 29 and 30 April to provide an opportunity for local boards to discuss their local priorities and advocacy areas, prior to decisions being made on the Annual Plan 2014/2015. 

8.       A number of key budget issues were raised by local boards through the annual plan process that require governing body consideration.  These are noted in Table One.

9.       Two local boards (Mangere-Otahuhu and Otara-Papatoetoe) have recommended that the governing body adopts for inclusion in the Annual Plan 2014/2015 a targeted rate on residential properties in the two local board areas, for the purpose of fully subsidising entry to swimming pools for persons 17 years and over.  These recommendations are covered in a separate report on today’s agenda.   

10.     Following final budget decisions made by the Budget Committee, local board financial statements will be updated and provided to local boards for approval in June business meetings when local boards meet to adopt final Local Board Agreements 2014/2015.  The final agreements and set of advocacy areas for each local board form part of the final Annual Plan 2014/2015 to be adopted by the governing body on 26 June 2014.    

 

 

Recommendation/s

That the Budget Committee:

a)      note:

i)        all local boards have reviewed their budgets and agreed a balanced budget for 2014/2015 and outer years, with some budget issues noted in Table One in this report.

 

 

Discussion

11.     This report provides an update on the content of local board agreements for 2014/2015 in order to finalise budgets for the Annual Plan 2014/2015.   This includes a summary of:

i)          Local submissions on the draft annual plan 2014/2015; and

ii)         Local board budgets for 2014/2015.

12.     This report also outlines next steps in the Annual Plan 2014/2015 process.

 

Local submissions on the draft Annual Plan 2014/2015

13.     1,967 submissions were received through consultation on the draft Annual Plan 2014/2015.  283 (14.4%) submitters requested to be heard.  The largest number of submissions were from Orakei, Waiheke, Albert-Eden and Maungakiekie-Tamaki local board areas.

14.     A high number of local submissions raised were for:

i)          Michaels Avenue Reserve  (Orakei Local Board pro forma) – 326 submissions were received supporting local board advocacy to the governing body “to assist financially with the building of new clubrooms at Michaels Avenue Reserve, and for the local board to assist the Ellerslie Sport club Inc. in identifying/securing further sources of financial support to facilitate the establishment of both a new amenities block and clubrooms, as a further stage in the overall redevelopment of that Reserve”. 

 

The Orakei Local Board considered this feedback and advocated for development of the Michaels Avenue Reserve changing room and toilet facilities.

 

ii)         Community swimming pool (Waiheke Local Board) – 241 submitters expressed an opinion on the proposed Waiheke community swimming pool, with 74% of them supportive of the project.  There was, however, mixed support for reallocating funding from current projects to achieve this, yet with more support than opposition for reallocation of funding on all projects proposed.

 

The Waiheke Local Board considered this feedback and through reprioritisation, did not reallocate funds from current projects to a swimming pool initiative.

 

15.     Some local boards provided feedback through resolutions on regional proposals.  These are outlined in the Annual Plan 2014/2015 Overview and Process Update report on today’s agenda.

 

Local board budgets

16.     Following consultation on the draft Annual Plan 2014/2015, all local boards held business meetings between 8 and 17 April to reprioritise budgets for 2014/2015 and review advocacy areas.

17.     Local board budgets were also updated in February as part of budget refresh to improve the strategic alignment and accuracy of budgets.   This included updating some capital expenditure programmes and budgets to better reflect expected delivery years.  It also incorporated the transfer of some council lease budgets from ACPL to local boards, as per a resolution passed by the Strategy and Finance Committee on 6 June 2013, to align budgets to agreed principles regarding the treatment of council leases. 

18.     All 21 local boards agreed a balanced budget for 2014/2015 and outer years that reflects the allocation of decision-making, with some budget issues noted in Table One below. 

19.     Local boards also confirmed a set of advocacy areas.  A full list of advocacy is provided in a separate report on today’s agenda.

20.     Local board and budget committee discussions were held on 29 and 30 April to provide an opportunity for local boards to discuss their local priorities and key advocacy areas, prior to decisions being made on the Annual Plan 2014/2015. 

21.     The following key budget issues raised by local boards through the annual plan process require consideration by the governing body in finalising budgets for the Annual Plan 2014/2015:

 

Table One: Key budget issues raised by local boards

Local Board

Budget Issue

Staff Response

Great Barrier

Broadband development

A resolution was passed to agree a balanced budget subject to confirmation that the unspent 2013/2014 budget of $277,000 for the Great Barrier broadband development project is carried forward into the 2014/2015 financial year as previously agreed with Financial Planning Policy and Budgeting.

Financial Planning Policy and Budgeting agrees with this request and will action.

Great Barrier

Glenfern Sanctuary

The local board requests approximately $1 million to support the purchase of the Glenfern Sanctuary.  It is an internationally renowned facility and has recently been placed on the market.  The local board has agreed in principle to allocate $200,000 of its budget towards this purchase subject to Auckland Council and other partnerships making up the difference.

Staff are seeking further information over the next couple of months to consider this purchase.

A report is being prepared for the 10 June 2014 Parks, Recreation and Sports Committee meeting.

Maungakiekie-Tamaki

Jubilee Bridge

A resolution was passed to agree a balanced budget which does not provide for the Jubilee Bridge, which requires additional funding that reflects updated estimates for the renewal of the bridge.

The Jubilee Bridge (approximately 60 metres over the entrance to the Panmure Basin) requires long term repairs. It has been temporarily repaired to last until November 2015. 

The local board is able to fund $500,000 towards this work and requests additional funding to renew the bridge.  Options include estimates of $150,000 to replace like with like or $900,000 to $1 million to widen the bridge to three metres.

Staff recommend future proofing the bridge and support the widening of the bridge.

A decision is sought through the mayoral proposal.

Māngere-Otahuhu

Mangere Town Centre Canopy

A resolution was passed to agree a balanced budget with the proviso that the local board receives expert financial and implementation advice on the Mangere Town Centre Canopy project to deliver it’s desired outcomes in a lateral, innovative and cost-effective way.

The lead financial advisor will work closely with departments and the local board to deliver desired outcomes.

Waitemata

Pioneer Women’s Hall

A resolution was passed requesting that the Freyberg Place commercial revenue (Pioneer Women’s Hall) be removed from the Board’s 2014/2015 and beyond revenue budgets. 

The revenue budget is $140,000 per year commencing December 2014.

A council controlled community centre development in Freyberg Square was agreed to by council which included changing the use of a non-service facility to a service facility.  This results in a loss of commercial revenue of which the local board had not been informed to accommodate in its existing budget.

A decision is sought through the mayoral proposal.

Whau

Avondale CAB

A resolution was passed requesting the governing body to include costs of Citizen's Advice Bureau facility leases in Avondale in its annual bulk funding for Citizen's Advice Bureau services.

 

The local board raised an issue relating to the Avondale Community Centre southern wing being closed due to spores and building failure.  The Avondale Citizens Advice Bureau has been temporarily relocated into prefabs.  The local board requests $13,000 in 2014/2015 and $13,000 in 2015/2016 to accommodate temporary rental for CAB whilst the community centre is developed.

Staff support this request to continue temporarily renting accommodation as there are few other options.  Staff recommended that either the local board reprioritises budgets or advocates for additional funds.

A decision is sought through the mayoral proposal.

 

 

Henderson-Massey

Ranui Library

The local board is requesting $200,000 to complete the current Ranui Library build due to a budget overrun from unplanned remediation of contaminated soil discovered at the start of the project and technical problems with the external surface of the library.

Staff support this request.

A decision is sought through the mayoral proposal.

Puketapapa

Tindall Foundation

A resolution was passed agreeing a balanced budget except for 2015/2016 and 2016/2017 due to the cost of implementing an agreement with Tindall Foundation to provide matching funds of $60,000 per annum which was not anticipated and cannot be absorbed. 

The local board advocates to the Governing Body for additional funds to achieve a balanced budget in 2015/2016 and 2016/2017.

The local board has temporarily balanced outer years using SLIPS funds.

For consideration during the long-term plan process.

 

22.     Two local boards (Mangere-Otahuhu and Otara-Papatoetoe) have recommended that the governing body adopts for inclusion in the Annual Plan 2014/2015 a targeted rate on residential properties in the two local board areas, for the purpose of fully subsidising entry to swimming pools for persons 17 years and over.  These recommendations are covered in a separate report on today’s agenda.   

 

Next steps

 

23.     Following budget decisions made today, local board budgets will be updated to:

i)          allow for any decisions made by this Committee that impact local board budgets, including successful local board advocacy or regional decisions that flow through to local board budgets;

ii)         make any outstanding budget adjustments required, e.g. alignment of property maintenance budgets to the capitalisation policy, correction of errors identified and any adjustments outstanding from budget refresh;

iii)         incorporate central costs (depreciation, interest, staff costs and corporate overheads).  These central costs will alter as the annual plan is finalised.  Changes in central costs have no impact on a local board’s level of discretionary funding. 

 

24.     Decisions made today will be communicated to local boards following this meeting.  Final 2014/2015 financial statements will be available to local boards on 30 May to support their updated local board agreements. 

25.     Local boards will meet to adopt their final local board agreement in meetings between
9 - 19 June.  The final agreements and set of advocacy areas for each local board form part of the final annual plan to be adopted by the governing body on 26 June.

 

Consideration

Local Board Views

26.     All local boards met in April to review and agree a balanced budget for 2014/2015 and outer years.  Key budget related raised during the annual plan process have been highlighted in this report to be considered by the Budget Committee in making Annual Plan 2014/2015 decisions.

Maori Impact Statement

27.     Many local board decisions are of importance to Maori and building relationships between local boards and relevant iwi is an on-going focus.  Local boards are mindful of the impact on Maori and Maori outcomes when making budget decisions.   Proposed changes to local board budgets were consulted using the special consultative procedure as part of the draft Annual Plan 2014/2015.

General

28.     All local board advocacy areas are identified in a separate report and should be considered in decisions for the Annual Plan 2014/2015.

Implementation Issues

29.     The next steps for finalising local board budgets are summarised above.

 

Attachments

There are no attachments for this report.     

Signatories

Author

Kate Marsh - Financial Planning Manager - Local Boards

Authorisers

Matthew Walker - Manager Financial Plan Policy and Budgeting

Karen Lyons - Manager Local Board Services

Andrew McKenzie - Chief Finance Officer

 


Budget Committee

08 May 2014

 

 

Mayor's Proposal for the final Annual Plan 2014/2015

 

File No.: CP2014/09193

 

  

 

Purpose

1.       To present the Mayor’s proposal for the final Annual Plan 2014/2015.

Executive summary

2.       The Mayor’s proposal for the final Annual Plan 2014/2015 is attached as Attachment A to this report.

 

Recommendation/s

That the Budget Committee:

a)         receive the Mayor’s Proposal for the final Annual Plan 2014/2015 report.

 

b)         recommend to the Governing Body adoption of the budget as set out in the draft             Annual Plan 2014/2015 with the following changes ($000):

                                                                                                                        Opex  Capex

i)          Previous political decisions impact                                         4,445                          

ii)          Bylaw implementation and other Licensing and                    

               Compliance capex                                                                    310      9,860

iii)         Pioneer Women’s and Ellen Melville Hall                                   82

            iv)        Independent Māori Statutory Board additional funding            150

            v)         Auckland Transport additional rates funding

                        (note 1, Attachment A)                                                           5,100   -50,000

            vi)        Auckland Council Property Limited budget shortfall

                        and other adjustments (note 2, Attachment A)                       2,110      5,000

            vii)       Auckland Tourism, Events and Economic

                        Development budget shortfall – Foodbowl and

                        depreciation                                                                            1,210     1,500

            viii)       Auckland Tourism, Events and Economic Development

                        other requests (note 3, Attachment A)                                     500         200

            ix)        Regional Facilities Auckland – Art gallery operating

                        funding (note 4, Attachment A)                                                800

            x)         Advisory panels                                                                        365

            xi)        The Southern Initiative (note 5, Attachment A)                        500

            xii)       Auckland Regional Amenities Funding Act etc. levies           (920)

            xiii)       Additional revenue from property activities (note 2,

                        Attachment A)                                                                         (2,190)

            xiv)      Airport capital repayment interest savings                             (4,750)

            xv)       Auckland Council Investments Limited dividends                  (4,700)

            xvi)      Waterfront Auckland dividend                                                            (3,000)

            xvii)     Jubilee Bridge repairs (Maungakiekie-Tāmaki)                             3      150

            xviii)     Avondale Citizens’ Advice Bureau rental                                     13

            xix)      Ngāti Whātua Orakei Reserves Board                                       156

            xx)       One off grant to The Rescue Helicopter (Auckland) Trust          20      900

 

c)         request Auckland Transport (AT) to re-prioritise a further $1 million to the sealing of             rural roads from within their existing capital budget to be applied to the areas of             highest need as identified in the January 2014 AT report on Local Board seal             extension.

d)         request the Chief Executive to instigate an immediate review of the capital             programmes of the council and council controlled organisations to identify savings,             and possible deferrals, with a target of $300 million (in addition to existing deferral             assumptions) to be reported back to the committee as part of the preparation for             the Long-term plan 2015-2025.

 

e)         recommend to the 8 May 2014 Governing Body meeting that:

i)     it adopt the fees and charges for animal management (Attachment A of the officer report called “Rates related policies and changes to fees and charges”) and environmental health and licensing (Attachment B of the officer report called “Rates related policies and changes to fees and charges”) at the governing body meeting scheduled to follow this meeting.

ii)     it delegate to the Chair or Deputy Chair of the Budget Committee and the Chief Finance Officer authority to make such other minor editorial amendments to the above schedules of fees and charges as are deemed necessary to provide clarity.

f)          recommend to the Governing Body that:

I)     it agree the extended boundary for the Otahuhu Business Association targeted rate and that new targeted rates for Devonport and State Highway 16 business associations be included in the Annual Plan 2014/2015 (pending local board ratification) and the BID targeted rates for 2014/2015 be set accordingly.

            II)         it note that the Annual Plan 2014/2015 will implement the council’s previous          decisions on fees and charges including:

i)          an annual inflation adjustment of 1.0 per cent made under the revenue and financing policy.

ii)          the final transition to target fee levels that recover 60 per cent of the animal management cost.

iii)         the continuing transition to uniform fee levels for food premises licensing.

III)   it approve the following changes to the fees and charges as consulted on through the draft Annual Plan 2014/2015:

i)          a uniform 5 per cent increase to all social housing rents.

ii)          changes to health protection licensing fees.

iii)         changes to building control (including land and property information) fees and charges.

IV)   it adopt the full schedule of regulatory fees and charges included in the draft Annual Plan 2014/2015.

g)      agree the changes to performance measures and targets for 2014/2015 set out in the officers report called “Annual Plan 2014/2015 – Budget Update” and its Attachment D.

 

Attachments

No.

Title

Page

aView

Mayor's proposal for the final annual plan 2014/2015

13

     

Signatories

Author

Mike Giddey - Democracy Advisor


Budget Committee

08 May 2014