Budget Committee

 

OPEN MINUTES

 

 

 

Minutes of a meeting of the Budget Committee held in the Reception Lounge, Auckland Town Hall, 301-305 Queen Street, Auckland on Monday, 26 May 2014 at 3.13pm.

 

present

 

Chairperson

Mayor Len Brown, JP

 

Deputy Chairperson

Cr Penny Webster

 

Members

Cr Cameron Brewer

 

 

Cr Dr Cathy Casey

 

 

Cr Bill Cashmore

 

 

Cr Ross Clow

 

 

Cr Linda Cooper, JP

 

 

Cr Alf Filipaina

 

 

Cr Hon Christine Fletcher, QSO

 

 

Cr Denise Krum

 

 

Cr Mike Lee

 

 

Cr Calum Penrose

 

 

Cr Dick Quax

 

 

Cr Sharon Stewart, QSM

 

 

Cr Wayne Walker

 

 

Cr John Watson

 

 

Cr George Wood, CNZM

 

 

APOLOGIES

 

 

Cr Anae Arthur Anae

For absence on council business

 

Cr Chris Darby

For absence on council business

 

Deputy Mayor Penny Hulse

For absence on council business

 

Cr Sir John Walker, KNZM, CBE

For absence on council business

 


ALSO PRESENT

 

Andrew Baker

Chair Franklin Local Board

Angela Dalton

Chair Manurewa Local Board

Bill McEntee

Chair Papakura Local Board

Brian Neeson

Chair Upper Harbour Local Board

Catherine Farmer

Chair Whau Local Board

David Collings

Chair Howick Local Board

Desley Simpson

Chair Orakei Local Board

Efeso Collins

Chair Otara-Papatoetoe Local Board

Izzy Fordham

Chair Great Barrier Local Board

Julia Parfitt

Chair Hibiscus & Bays Local Board

Julie Fairey

Chair Puketapapa Local Board

Kay McIntyre

Chair Kaipatiki Local Board

Lydia Sosene

Chair Mangere-Otahuhu Local Board

Mike Cohen

Chair Devonport-Takapuna Local Board

Paul Walden

Chair Waiheke Local Board

Peter Haynes

Chair Albert-Eden Local Board

Sandra Coney

Chair Waitakere Ranges Local Board

Shale Chambers

Chair Waitemata Local Board

Simon Randall

Chair Maungakiekie-Tamaki Local Board

Vanessa Neeson

Chair Henderson-Massey Local Board

 

 


Budget Committee

26 May 2014

 

 

 

1          Apologies

 

Resolution number BUD/2014/26

MOVED by Chairperson LCM Brown, seconded by Deputy Chairperson MP Webster:  

That the Budget Committee:

a)         accept the apologies from Councillors AJ Anae, C Darby, PA Hulse and JG Walker for absence on council business.

CARRIED

 

2          Declaration of Interest

 

There were no declarations of interest.

 

3          Confirmation of Minutes

 

Resolution number BUD/2014/27

MOVED by Chairperson LCM Brown, seconded by Cr LA Cooper:  

That the Budget Committee:

a)         confirm the ordinary minutes of its meeting, held on Thursday, 8 May 2014, as a true and correct record.

CARRIED

 

4          Petitions

 

There were no petitions.

 

5          Public Input

 

There was no public input.

 

6          Local Board Input

 

There was no local board input.

 

7          Extraordinary Business

 

There was no extraordinary business.

 

8          Notices of Motion

 

There were no notices of motion.

 


 

9

Adoption of amendments to the Local Boards Funding Policy

 

Secretarial note:         The chairperson tabled recommendations which, during debate, were amended with the consent of the meeting.

 

 

MOVED by Chairperson LCM Brown, seconded by Deputy Chairperson MP Webster:  

 

That the Budget Committee:

a)      adopt for consultation the Statement of proposal to amend the Local boards funding policy and Long-term Plan 2012-2022 including a preferred option based on

i)          separating local activities into two parts, as defined in the report:

1.         local asset based services

2.         locally driven initiatives.

ii)         the costs of asset based services being funded from general rates, in accordance with asset management plans and the regional budgeting process.

iii)      each local board being allocated a share of a total general rate funded budget for locally driven initiatives set by the Governing Body each year with 90 percent of the total budget being allocated to each local board based on their share of population, 5 percent of the total budget being allocated to each local board based on their share of average deprivation and 5 percent of the total budget being allocated to each local board based on their share of land area.

iv)        that transition to the new allocation be managed as follows:

1.         sufficient funding be allocated to the locally driven initiatives budget to enable all local boards underfunded when measured against the new formula to move in equal steps to be fully funded within 3 years (approx. $900,000 per year), noting that local boards overfunded against the formula will be held at current absolute levels.

2.         after the first three years any additional funding allocated to the locally driven initiatives budget will be allocated on the basis that no local board’s budget is reduced and that any additional funding is applied in a way that will allow all local boards to catch-up to the higher funded Boards over a period of time noting that those Boards that are overfunded against the formula will hold current absolute levels of funding until that catch-up point is reached.

v)      local boards are able to make investment decisions, within Governing Body parameters, providing the local board can meet the consequential operating costs from their locally driven initiatives budget.

vi)      funding for local activities on Great Barrier Island and Waiheke is agreed each year during the budgeting process.

b)      delegate authority for updating the amendments to the Local boards funding policy and the Statement of proposal to reflect the decisions made at this meeting and to make minor editorial changes or correction of minor errors to the Chairperson or Deputy Chairperson of the Budget Committee, and the Chief Finance Officer.

c)      note that further work will be undertaken as part of the long-term plan programme to:

i)          determine the appropriate amount of budget allocated to all council activities including local activities.

ii)         determine whether more activities and the corresponding budget should sit in the locally driven initiatives category as part of the review of the allocation of decision making.

iii)        improve the methodology of allocating overheads to all council activities, including local activities.

d)       appoint a Hearings Panel of five members, to include Local Board representation, to hear submissions, deliberate and make recommendations to the Budget Committee on the review of the Local Boards Funding Policy.

e)       delegate the Chairperson or the Deputy Chairperson of the Budget Committee the authority to make replacement or additional appointments to the hearings panel.

 

 

Cr R Clow moved by way of amendment, seconded Cr A Filipaina:

 

a)      iii)      each local board being allocated a share of a total general rate funded budget for locally driven initiatives se by the Governing Body each year with 75 percent of the total budget being allocated to each local board based on their share of population and 25 percent of the total budget being allocated to each local board based on their share of average deprivation.

 

 

A division was called for, voting on which was as follows:

For

Cr CM Casey

Cr RI Clow

Cr AM Filipaina

Against

Cr CE Brewer

Chairperson LCM Brown

Cr WB Cashmore

Cr LA Cooper

Cr CE Fletcher

Cr DA Krum

Cr ME Lee

Cr CM Penrose

Cr D Quax

Cr SL Stewart

Cr WD Walker

Cr J Watson

Deputy Chairperson MP Webster

Cr GS Wood

Abstained

 

The amendment was declared lost by 3 votes to 14.

 

 

Cr C Casey moved by way of amendment, seconded Cr W Walker:

 

a)      iii)      each local board being allocated a share of a total general rate funded budget for locally driven initiatives se by the Governing Body each year with 90 percent of the total budget being allocated  to each local board based on their share of population and 10 percent of the total budget being allocated to each local board based on their share of average deprivation.

 

 

A division was called for, voting on which was as follows:

For

Cr CM Casey

Cr RI Clow

Cr AM Filipaina

Cr WD Walker

Against

Cr CE Brewer

Chairperson LCM Brown

Cr WB Cashmore

Cr LA Cooper

Cr CE Fletcher

Cr DA Krum

Cr ME Lee

Cr CM Penrose

Cr D Quax

Cr SL Stewart

Cr J Watson

Deputy Chairperson MP Webster

Cr GS Wood

Abstained

 

The amendment was declared lost by 4 votes to 13.

 

 

 

 

The Chairperson put the substantive motion:

 

Resolution number BUD/2014/28

MOVED by Chairperson LCM Brown, seconded by Deputy Chairperson MP Webster:  

 

That the Budget Committee:

a)         adopt for consultation the Statement of proposal to amend the Local boards funding policy and Long-term Plan 2012-2022 including a preferred option based on:

i)          separating local activities into two parts, as defined in the report:

1.         local asset based services

2.         locally driven initiatives.

ii)         the costs of asset based services being funded from general rates, in accordance with asset management plans and the regional budgeting process.

iii)     each local board being allocated a share of a total general rate funded budget for locally driven initiatives set by the Governing Body each year with 90 percent of the total budget being allocated to each local board based on their share of population, 5 percent of the total budget being allocated to each local board based on their share of average deprivation and 5 percent of the total budget being allocated to each local board based on their share of land area.

iv)       that transition to the new allocation be managed as follows:

1.         sufficient funding be allocated to the locally driven initiatives budget to enable all local boards underfunded when measured against the new formula to move in equal steps to be fully funded within 3 years (approx. $900,000 per year), noting that local boards overfunded against the formula will be held at current absolute levels.

2.         after the first three years any additional funding allocated to the locally driven initiatives budget will be allocated on the basis that no local board’s budget is reduced and that any additional funding is applied in a way that will allow all local boards to catch-up to the higher funded Boards over a period of time noting that those Boards that are overfunded against the formula will hold current absolute levels of funding until that catch-up point is reached.

v)      local boards are able to make investment decisions, within Governing Body parameters, providing the local board can meet the consequential operating costs from their locally driven initiatives budget.

vi)     funding for local activities on Great Barrier Island and Waiheke is agreed each year during the budgeting process.

 

b)        delegate authority for updating the amendments to the Local boards funding policy and the Statement of proposal to reflect the decisions made at this meeting and to make minor editorial changes or correction of minor errors to the Chairperson or Deputy Chairperson of the Budget Committee, and the Chief Finance Officer.

c)         note that further work will be undertaken as part of the long-term plan programme to:

i)          determine the appropriate amount of budget allocated to all council activities including local activities.

ii)         determine whether more activities and the corresponding budget should sit in the locally driven initiatives category as part of the review of the allocation of decision making.

iii)       improve the methodology of allocating overheads to all council activities, including local activities.

d)        appoint a Hearings Panel of five members, to include Local Board representation, to hear submissions, deliberate and make recommendations to the Budget Committee on the review of the Local Boards Funding Policy.

e)         delegate the Chairperson or the Deputy Chairperson of the Budget Committee the authority to make replacement or additional appointments to the hearings panel.

CARRIED

 

 

10        Consideration of Extraordinary Items

 

There was no consideration of extraordinary items.

 

 

 

4.30 pm                                              The Chairperson thanked Members for their attendance and attention to business and declared the meeting closed.

 

CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Budget Committee HELD ON

 

 

 

DATE:.........................................................................

 

 

 

CHAIRPERSON:........................................................