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

 

Date:††††††††††††††††††††††

Time:

Meeting Room:

Venue:

 

Thursday, 19 March 2015

9.30am

Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

 

Finance and Performance Committee

 

OPEN ADDENDUM AGENDA

 

 

MEMBERSHIP

 

Chairperson

Cr Penny Webster

 

Deputy Chairperson

Cr Ross Clow

 

Members

Cr Anae Arthur Anae

Cr Mike Lee

 

Cr Cameron Brewer

Cr Calum Penrose

 

Mayor Len Brown, JP

Cr Dick Quax

 

Cr Dr Cathy Casey

Cr Sharon Stewart, QSM

 

Cr Bill Cashmore

Member David Taipari

 

Cr Linda Cooper, JP

Member John Tamihere

 

Cr Chris Darby

Cr Sir John Walker, KNZM, CBE

 

Cr Alf Filipaina

Cr Wayne Walker

 

Cr Hon Christine Fletcher, QSO

Cr John Watson

 

Deputy Mayor Penny Hulse

Cr George Wood, CNZM

 

Cr Denise Krum

 

 

(Quorum 11 members)

 

 

 

Crispian Franklin

Democracy Advisor

 

16 March 2015

 

Contact Telephone: (09) 373 6205

Email: crispian.franklin@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 


Finance and Performance Committee

19 March 2015

 

ITEM†† TABLE OF CONTENTS††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† PAGE

10††††††† The 2015-16 Levies for the Auckland Regional Amenities, the Auckland War Memorial Museum, and the Museum of Transport and Technology†††††††††††††††††††††††††††††††††††††† 5 ††

††


Finance and Performance Committee

19 March 2015

 

The 2015-16 Levies for the Auckland Regional Amenities, the Auckland War Memorial Museum, and the Museum of Transport and Technology

 

File No.: CP2015/03725

 

††

Purpose

1.†††††† To approve the 2015-16 levies for the Auckland War Memorial Museum (AWMM), and the Museum of Transport and Technology (MOTAT).

2.†††††† To discuss the Auckland Regional Amenities Funding Boardís (the Funding Boardís) annual plan.

Executive Summary

3.†††††† The boards of AWMM and MOTAT have prepared their respective draft annual plans for the 2015-16 financial year.† These draft plans set out the proposed funding levy sought from Auckland Council.† The draft annual plans have been publically consulted on.

4.†††††† Under the Advisory and Management Agreement, RFA is the appointed advisor to Auckland Council on the annual AWMM and MOTAT funding processes.† RFA has made submissions on both the AWMM and MOTAT draft annual plans.†

5.†††††† It is RFAís role to consider and make recommendations to the Council on the statutory levies imposed by MOTAT and AWMM.† This report considers RFAís recommendation on the proposed levies.†††††

MOTAT

6.†††††† The MOTAT annual plan proposes a levy of $12.287 million, a 2.5 percent (or $300,000) increase from 2014-15.† RFA has recommended that the MOTAT levy be approved.†

7.†††††† RFAís view is that MOTATís support of the Auckland Plan and the Auckland Arts and Culture Strategic Action Plan is recognised within the museums draft annual plan. The plan includes measures that relate to growing Maori participation in activities and collaboration across the sector.

AWMM

8.†††††† AWMMís draft annul plan proposed a levy of $28.971 million, a 3.5% (or $980,000) increase from 2014-15.

9.†††††† The AWMM, RFA, and council staff, are in discussions regarding ways to reduce the proposed increase in the levy.† AWMM have indicated that they could possibly reduce the proposed levy for 2015-16 if there was greater certainty regarding funding in future years.

10.†††† Consideration is being given to the Master Plan, and the 10 year Operation Business Plan that AWMM is developing.† These discussions will provide a greater understanding of the AWMMís future funding requirements.†

11.†††† There is the possibility that these discussions could lead to a three year funding arrangement with AWMM, which could reduce the proposed 2015-16 levy.† Staff are supportive of a three year funding arrangement, as it would allow both Auckland Council and the AWMM to plan with more certainty.

12.†††† The Auckland War Memorial Act requires the annual plan, and the levy, be agreed by 30 April.† If no agreement can be reached, the parties must go to arbitration.

13.†††† It is recommended that the Chair and Deputy Chair of this committee be delegated authority to agree the levy for 2015-16, and, subject to negotiation, the terms of a three year funding arrangement with the AWMM.† The committee may wish to indicate the parameters of such an arrangement.

Auckland Regional Amenities
Funding Board

14.†††† The Funding Board has published its draft 2015-16 annual plan.† This committee has previously approved the councilís submission on the draft annual plan.

15.†††† The Funding Board has considered the submissions that it has received, and on 17 March will recommend to council its final annual plan, including the levy sought from Auckland Council.†

16.†††† The final annual plan will not be available in time to go out with this agenda.† However, it will be tabled at the committee meeting for discussion.† The final decision whether to approve or reject the levy will be made at the Governing Body meeting on 26 March.

 

Recommendation/s

That the Finance and Performance Committee:

a)††††† approve the 2015-16 Museum of Transport and Technology levy of $12.287 million, as recommended by Regional Facilities Auckland.

b)††††† note that discussions are ongoing between the Auckland War Memorial Museum, RFA, and Auckland Council, as to the proposed levy for 2015-16.

c)††††† agree in principle, subject to negotiations, to a three year funding arrangement being put in place with the Auckland War Memorial Museum.

d)††††† delegate the Chair and the Deputy Chair of the Finance and Performance committee authority to agree the 2015-16 Auckland War Memorial Museum levy, and the terms of any three year funding arrangement within any parameters indicated by the committee.

 

 

Comments

17.†††† AWMM and MOTAT operate under the following pieces of legislation:

∑††† Auckland War Memorial Museum Act 1996

∑††† Museum of Transport and Technology Act 2000

18.†††† The legislation requires both museums to publish draft annual plans, including details of the proposed levy to be imposed on Auckland Council.† These annual plans must be consulted on publically.

19.†††† Pursuant to the Advisory and Management Agreement between RFA and Auckland Council, RFA has been appointed Councilís advisor for the museumsí annual funding process.† RFA has made submissions on Auckland Councilís behalf to both AWMM and MOTAT.†

20.†††† Both AWMM and MOTAT have considered the submissions they received, including from RFA.†

21.†††† RFA has assessed the levies proposed by the museums, and made its recommendations to Auckland Council.† Letters containing RFAís recommendations can be found at Attachment A & B.† Copies of AWMM and MOTATís annual plans can also be found at Attachment C and D.†

 

MOTAT

22.†††† The MOTAT annual plan proposes a levy of $12.287 million, a 2.5 percent (or $300,000) increase from 2014-15.† RFA has considered this levy in the context of the MOTATís proposed annual plan, and its strategic plan, and recommended that the levy be approved.

23.†††† RFA notes that:

∑†††† The 2015/16 MOTAT draft annual plan delivers on year two of MOTATís strategic vision.

∑†††† MOTATís support of the Auckland Plan and the Auckland Arts and Culture Strategic Action Plan is recognised within the museumís draft annual plan. The plan includes measures that relate to growing Maori participation in activities and collaboration across the sector.

RFA notes that a key priority in the plan is to continue to improve the quality of the exhibitions and attractions, aligning them to the strategy, and developing the visitor experience.† This will require improvements in the museumís buildings and infrastructure.† MOTAT is working on a development plan to address these issues.

AWMM

24.†††† In November 2014 the AWMM Board was considering a levy increase of 4.2%.† This was subsequently reduced to a $3.5% (or $980,000) increase in AWMMís draft annul plan.† The total levy sought in the draft annual plan is $28.971 million.

25.†††† The AWMM, RFA, and council staff, have had discussions regarding reducing the proposed levy increase.† AWMM have indicated that this could be possible if there was greater certainty regarding funding in future years.

26.†††† The annual funding process does not provide any certainty to the AWMM over the level of funding it will receive in future years.†

27.†††† The AWMM is developing a Master Plan for the development of the museum, together with a 10 year Operational Business Plan.† If the AWMM had greater certainty over the level of future years funding, it would be better able to plan the phasing of investment in the museum, and plan with more certainty.

28.†††† The possibility of a three year funding arrangement has been discussed.† The AWMM has indicated that it could consider a three year funding arrangement with annual levy increases of 3%, 3.5%, and 4.2% from 2015-16.† It should be noted that the AWMM board has yet to consider a proposal for a three year funding arrangement, or a reduction in the levy proposed in the draft annual plan.

29.†††† Due to the ongoing nature of these discussions, RFA has not made a recommendation on the levy proposed in the draft annual plan.† Rather, RFA has recommended to Auckland Council that discussions continue with the museum on a three year funding arrangement.

30.†††† Staff are supportive of a three year funding arrangement, as it would allow both Auckland Council and the AWMM to plan with more certainty.

31.†††† The Auckland War Memorial Act requires the annual plan, and the levy, be agreed by 30 April.† If no agreement can be reached, the parties must go to arbitration.

32.†††† It is therefore recommended that the Chair and Deputy Chair of this committee be delegated authority to agree the levy for 2015-16, and if possible a three year funding arrangement.†

Auckland Regional Amenities Funding Board

33.†††† The Funding Board has published its draft 2015-16 annual plan.† This committee has previously approved the councilís submission on the draft annual plan.

34.†††† The draft funding plan proposes a total levy for 2015-16 of $15,148,400 representing an increase of $837,400 (or 5.85%) over 2014-15.† However, a like for like comparison with last yearís funding plan is difficult due to:

(i)†††††††††† the proposed levy for 2015-16 includes a step-up in funding of $1 million for the trial annualisation of the Auckland Arts Festival from 2016.

(ii)†††††††††† one amenity, the Auckland Rescue Helicopter Trust (ARHT) chose not to make an application to the Funding Board.† ARHT received $450,000 in 2014-15.

(iii)††††††††† Stardome Observatory received a one-off $150,000 increase in 2014-15 to undertake a strategic review.†

35.†††† The Funding Board has considered the submissions that it has received, and on 17 March will recommend to council its final annual plan, including the levy sought from Auckland Council.†

36.†††† The final annual plan will not be available in time to go out with this agenda.† However, it will be tabled at the committee meeting for discussion.† The final decision whether to approve or reject the levy will be made at the 26 March Governing Body meeting.


Budget issues

37.†††† Details of the total levies being sought by the AWMM, MOTAT, and the Funding Board are set out in the table below:

Organisation

Proposed levy

AWMM

$28,971,000

MOTAT

$12,287,000

Funding Board

$15,148,400

Total

$56,406,400

Draft LTP budget

$57,079,346

 

Consideration

Local Board views and implications

38.†††† Decision making and oversight in respect of regional activities is the responsibility of the Governing Body.†

Māori impact statement

39.†††† AWMM and MOTAT have the ability to make positive contributions to Maori wellbeing, and to deliver on Auckland Plan outcomes relating to effective communication and engagement with Maori.

40.†††† In previous yearís levy process, MOTAT and the AWMM were asked to engage with manawhenua and mataawaka in the region, in relation to ongoing development of their respective strategies.

41.†††† In the last 12 months MOTAT has commenced a process to incorporate Maori language, culture and technology into its exhibitions and education programmes.† MOTAT has also involved Ngati Whatua in its discussions regarding the development of the Museum.

42.†††† MOTAT is aiming to develop a mutually rewarding relationship whereby iwi assist the museum to highlight Maori knowledge, culture and views in ways that ensures it is acknowledged, respected and passed on.

43.†††† In its annual plan, MOTAT states that it will build on the relationship that it has started with Ngati Whatu in accordance with the principles of Te Tiriti o Waitangi.† MOTAT also states that it will ensure that the principles of Te Tiriti o Waitangi and Maori customs and principles are incorporated and acknowledged where appropriate.

44.†††† The AWMM is looking to accelerate Iwi and Maori engagement to enable them to reconnect with locally and nationally significant taonga, and to increase knowledge of taonga.

45.†††† One of the AWMMís projects, Te Awe, will help revitalise the Māori galleries and other spaces in collaboration with iwi and other communities.† This project also aims to enhance research at the museum and provide richer experiences for visitors to the museum onsite, online and offsite.

Implementation

46.†††† There are no implementation issues associated with this report.

 

Attachments

No.

Title

Page

aView

RFA letter of recommendation AWMM

11

bView

RFA letter of recommendation MOTAT

15

c

AWMM draft annual plan 2015/16 (Under Separate Cover)

 

d

MOTAT draft annual plan 2015/16 (Under Separate Cover)

 

† ††††

Signatories

Authors

Alastair Cameron - Principal Advisor CCO Governance and External Partnerships

Authorisers

John Bishop - Treasurer† and Manager CCO Governance & External Partnerships

Kevin Ramsay - Chief Financial Officer


Finance and Performance Committee

19 March 2015

 




Finance and Performance Committee

19 March 2015

 


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