I hereby give notice that an extraordinary meeting of the Governing Body will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Thursday, 28 June 2018

9.30am

Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

 

Tira Kāwana / Governing Body

 

OPEN AGENDA

 

 

 

MEMBERSHIP

 

Mayor

Hon Phil Goff, CNZM, JP

 

Deputy Mayor

Bill Cashmore

 

Councillors

Cr Josephine Bartley

Cr Penny Hulse

 

Cr Dr Cathy Casey

Cr Mike Lee

 

Cr Ross Clow

Cr Daniel Newman, JP

 

Cr Fa’anana Efeso Collins

Cr Greg Sayers

 

Cr Linda Cooper, JP

Cr Desley Simpson, JP

 

Cr Chris Darby

Cr Sharon Stewart, QSM

 

Cr Alf Filipaina

Cr Sir John Walker, KNZM, CBE

 

Cr Hon Christine Fletcher, QSO

Cr Wayne Walker

 

Cr Richard Hills

Cr John Watson

 

 

 

 

 

 

 

 

 

 

(Quorum 11 members)

 

 

 

Sarndra O'Toole

Team Leader Governance Advisors

 

25 June 2018

 

Contact Telephone: (09) 890 8152

Email: sarndra.otoole@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 



Terms of Reference

 

Those powers which cannot legally be delegated:

 

(a)        the power to make a rate

(b)        the power to make a bylaw

(c)        the power to borrow money, or purchase or dispose of assets, other than in accordance with the long term plan

(d)        the power to adopt a long term plan, annual plan, or annual report

(e)        the power to appoint a chief executive

(f)        the power to adopt policies required to be adopted and consulted on under the Local Government Act 2002 in association with the long-term plan or developed for the purpose of the local governance statement

(g)        the power to adopt a remuneration and employment policy.

 

Additional responsibilities retained by the Governing Body:

 

(a)        approval of long-term plan or annual plan consultation documents, supporting information and consultation process prior to consultation

(b)        approval of a draft bylaw prior to consultation

(c)        resolutions required to be made by a local authority under the Local Electoral Act 2001, including the appointment of electoral officer

(d)        adoption of, and amendment to, the Committee Terms of Reference, Standing Orders and Code of Conduct

(e)        relationships with the Independent Māori Statutory Board, including the funding agreement and appointments to committees

(f)        approval of the Unitary Plan

(g)        overview of the implementation and refresh of the Auckland Plan through setting direction on key strategic projects (e.g. the City Rail Link and the alternative funding mechanisms for transport) and receiving regular reporting on the overall achievement of Auckland Plan priorities and performance measures.

 


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 a resolution is passed permitting a person to remain because their knowledge will assist the meeting.

 

Those who are not members of the public

 

General principles

 

·         Access to confidential information is managed on a “need to know” basis where access 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 is necessary 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 item and 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 a Governing Body meeting; all members of the committee if the meeting is a committee meeting).

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

·         All councillors have the right to attend any meeting of a committee and councillors who are not members of a committee may remain, subject to any limitations in standing orders.

 

Independent Māori Statutory Board

 

·         Members of the Independent Māori Statutory Board who are appointed members of the committee remain.

·         Independent Māori Statutory Board members and staff remain if this is necessary in order for them to perform their role.

 

Staff

 

·         All staff supporting the meeting (administrative, senior management) remain.

·         Other 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 relevant to, a particular Local Board area.

 

Council Controlled Organisations

 

·         Representatives of a Council Controlled Organisation can remain only if required to for discussion of a matter relevant to the Council Controlled Organisation.

 

 

 


Governing Body

28 June 2018

 

 

ITEM   TABLE OF CONTENTS                                                                                        PAGE

1          Affirmation                                                                                                                      7

2          Apologies                                                                                                                        7

3          Declaration of Interest                                                                                                   7

4          Petitions                                                                                                                          7  

5          Public Input                                                                                                                    7

6          Local Board Input                                                                                                          7

7          Extraordinary Business                                                                                                7

8          Notices of Motion                                                                                                          8

9          Tūpuna Maunga Authority Operational Plan 2018/2019                                           9

10        Allocation of Decision-Making Responsibility for Non-Regulatory Activities   103

11        Adoption of the Revenue and Financing Policy                                                    129

12        Adoption of the Long-term Plan 2018-2028 (10-year Budget)                              147

13        Rates Setting 2018/2019                                                                                            181  

14        Consideration of Extraordinary Items 

 

 


 

 

1          Affirmation

 

His Worship the Mayor will read the affirmation.

 

 

2          Apologies

 

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

 

 

3          Declaration of Interest

 

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

 

 

4          Petitions

 

There is no petitions section.

 

 

5          Public Input

 

There is no public input section.

 

 

6          Local Board Input

 

There is no local board input section.

 

 

7          Extraordinary Business

 

Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (as amended) 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 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 a subsequent meeting.”

 


 

 

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) 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 local authority; 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 item except to refer that item to a subsequent meeting of the local authority for further discussion.”

 

 

8          Notices of Motion

 

There were no notices of motion.

 

 


Governing Body

28 June 2018

 

 

Tūpuna Maunga Authority Operational Plan 2018/2019

 

File No.: CP2018/10447

 

  

 

Te take mō te pūrongo / Purpose of the report

1.       To agree to the Tūpuna Maunga Authority Operational Plan 2018/2019 and the Summary of the Tūpuna Maunga Authority Operational Plan 2018/2019.

Whakarāpopototanga matua / Executive summary

2.       The Tūpuna Maunga Authority has approved the Tūpuna Maunga Authority Operational Plan 2018/2019 and the Summary of the Tūpuna Maunga Authority Operational Plan 2018/2019.

3.       Feedback on the Draft Tūpuna Maunga Operational Plan 2018/2019, received through the Long-term Plan consultation process, was considered on the 9 May 2018 jointly with the Tūpuna Maunga Authority.  On 28 May 2018, the Tūpuna Maunga Authority agreed the Authority’s Operational Plan 2018/2019 and the Summary of the Operational Plan 2018/2019 and these documents were subsequently adopted by the Tūpuna Maunga Authority on 18 June 2018

4.       The Governing Body is invited to approve the Tūpuna Maunga Authority Operational Plan 2018/2019 and the Summary of the Tūpuna Maunga Authority Operational Plan 2018/2019 for inclusion in the Long-term Plan 2018-2028 (10-year Budget). 

 

Ngā tūtohunga / Recommendation/s

That the Governing Body:

a)      agree the Tūpuna Maunga Authority Operational Plan 2018/2019 (Attachment A to the agenda report) and Summary of the Tūpuna Maunga Authority Operational Plan 2018/2019 (Attachment B to the agenda report) for inclusion in the Long-term Plan 2018-2028.

 

Horopaki / Context

5.       Each year the Tūpuna Maunga Authority Operational Plan is developed to provide a framework in which the council will carry out its functions for the routine management of the tūpuna maunga under the direction of the Tūpuna Maunga Authority.  The Tūpuna Maunga Authority Operational Plan must be agreed concurrently with the council’s annual budget and included in summary form in the annual budget.

6.       A summary of the Draft Tūpuna Maunga Authority Operational Plan was included in the consultation document and public feedback was received by the council and the Tūpuna Maunga Authority.  A report summarising the feedback was received at a joint meeting of the council and the Tūpuna Maunga Authority.

Tātaritanga me ngā tohutohu / Analysis and advice

7.       On 16 October 2017, the Tūpuna Maunga Authority adopted its Draft Tūpuna Maunga Operational Plan 2018/2019 and Draft Summary of the Tūpuna Maunga Operational Plan 2018/2019 for inclusion in the Consultation Document and Supporting Information to support consultation on the Long-term Plan 2018-2028.

8.       On 11 December 2017, the Governing Body adopted the Draft Tūpuna Maunga Operational Plan 2018/2019 and the Draft Summary of the Tūpuna Maunga Operational Plan 2018/2019 for consultation.

9.       On 21 February 2018, the Governing Body adopted the Long-term Plan 2018-2028 Consultation Document and supporting information which included the Draft Summary of the Tūpuna Maunga Operational Plan 2018/2019.  The Governing Body also agreed the approach to consultation including participation in a joint deliberations meeting with the Tūpuna Maunga Authority on submissions on the Draft Tūpuna Maunga Operational Plan 2018/2019.

10.     The council received feedback on the Draft Tūpuna Maunga Operational Plan 2018/2019 through its Long-term Plan consultation process.

11.     The Tūpuna Maunga Authority received feedback via three mechanisms:

·  through the Auckland Council process and events

·  directly to the Tūpuna Maunga Authority

·   a hearing of oral submissions held by the Tūpuna Maunga Authority on the 26 March 2018.

12.     A report was prepared summarising feedback received on the Draft Tūpuna Maunga Operational Plan through both the council and Tūpuna Maunga Authority processes (attached as Attachment C). This was considered on 9 May 2018, when joint deliberation was held between the Tūpuna Maunga Authority and the Finance and Performance Committee of council.

13.     On 28 May 2018, the Tūpuna Maunga Authority agreed the Authority’s Operational Plan 2018/2019 and the Summary of the Operational Plan 2018/2019 and these documents were subsequently adopted by the Tūpuna Maunga Authority on 18 June 2018.  The Tūpuna Maunga Operational Plan 2018/2019 and Summary of the Tūpuna Maunga Operational Plan 2018/2019 were adopted by the Tūpuna Maunga Authority with a series of minor updates and refinements all within the same budget envelope.

14.     The Governing Body is invited to approve the Tūpuna Maunga Authority Operational Plan 2018/2019 and the Summary of the Tūpuna Maunga Authority Operational Plan 2018/2019 for inclusion in the Long-term Plan 2018-2028.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

15.     The work of the Tūpuna Maunga Authority spans many local board areas, but the approval of the Tūpuna Maunga Authority Operational Plan is a Governing Body decision, therefore the views of local boards have not been sought.

Tauākī whakaaweawe Māori / Māori impact statement

16.     The Tūpuna Maunga Authority is a tangible expression of a Treaty-based partnership between Ngā Mana Whenua and the council. It is a vehicle through which the mana whenua worldview and historical, cultural and spiritual connections with the maunga will be given visibility and guide decision-making for the health and wellbeing of these important taonga.

Ngā ritenga ā-pūtea / Financial implications

17.     The budget for the Tūpuna Maunga Authority Operational Plan 2018/2019 was resolved by the Governing Body on 31 May 2018, and is provided for in the council’s Long-term Plan 2018-2028.

Ngā raru tūpono / Risks

18.     The Tūpuna Maunga Authority Operational Plan 2018/2019 is necessary to support the council’s routine management of the tūpuna maunga under the direction of the Tūpuna Maunga Authority.  There is reputational risk to Māori outcomes and relationships if the council did not approve funding for the tūpuna maunga in the Auckland area. This could affect council’s ongoing relationships with mana whenua organisations of Tāmaki Makaurau.  There is also reputational risk in relation to sections of the community opposed to co-governance entities established by Treaty of Waitangi settlements.

Ngā koringa ā-muri / Next steps

19.     Prior to 1 July 2018 the council is required to adopt the final Long-term Plan 2018-2028 which will provide funding for the Tūpuna Maunga Operational Plan 2018/2019.

 

Ngā tāpirihanga / Attachments

No.

Title

Page

a

Tūpuna Maunga Authority Operational Plan 2018/2019

13

b

Summary of the Tūpuna Maunga Authority Operational Plan 2018/2019

93

c

Report on submissions on the Tūpuna Maunga Authority Operational Plan 2018-2019

99

      

Ngā kaihaina / Signatories

Author

Dominic Wilson - Head of Co-governance

Authorisers

Phil Wilson - Governance Director

Matthew Walker - Acting Group Chief Financial Officer

Stephen Town - Chief Executive

 


Governing Body

28 June 2018

 

 


 


 


 


 


 


 


 


 



Governing Body

28 June 2018

 

 


Governing Body

28 June 2018

 

 


Governing Body

28 June 2018

 

 



Governing Body

28 June 2018

 

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Governing Body

28 June 2018

 

 


 


 


 


 


 


Governing Body

28 June 2018

 

 


 


 


Governing Body

28 June 2018

 

 

Allocation of Decision-Making Responsibility for Non-Regulatory Activities

 

File No.: CP2018/10765

 

  

 

Te take mō te pūrongo / Purpose of the report

1.       To seek adoption of the updated version of the Allocation of Decision-Making for Non-Regulatory Activities as part of the Long-term Plan 2018-2028.

Whakarāpopototanga matua / Executive summary

2.       The Governing Body is required by legislation to allocate decision-making responsibility for the non-regulatory activities of Auckland Council to either itself or local boards. This allocation is captured in the policy document Allocation of Decision-Making for Non-Regulatory Activities (allocation of decision-making).

3.       Each long-term plan and annual plan must identify the allocation of decision-making. There is a legislative presumption that local boards will be responsible for making decisions on non-regulatory activities except where decision-making on a region-wide basis will better promote the wellbeing of communities across Auckland.

4.       The allocation of decision-making was extensively considered as part of the Governance Framework Review over the past two years. Given this, the scope for the current review of the allocation of decision-making is to reflect the one substantive change approved by the Governing Body through the Governance Framework Review process. Also to make minor amendments to references and language to ensure it is up-to-date with current council practice.

5.       The one substantive change approved by the Governing Body was to allocate decision-making responsibility to local boards’ for the disposal of local service properties and reinvestment of sale proceeds in line with the service property optimisation approach adopted by the Finance and Performance Committee in March 2015.

6.       Local boards were engaged extensively in the Governance Framework Review and also had the opportunity to comment specifically on the proposed amendments to the current allocation of decision-making. Seventeen local boards endorsed the proposed amendments. In response to comments from seven local boards new introductory text is proposed in the allocation of decision-making. This is to provide clarity on how the allocation of decision-making has been drafted and is applied.

 

Ngā tūtohunga / Recommendation/s

That the Governing Body:

a)      adopt the Long-term Plan 2018-2028 Allocation of Decision-Making Responsibility for Non-Regulatory Activities, that alters decision-making for service property optimisation in line with the findings of the Governance Framework Review.

 


 

 

Horopaki / Context

7.       The Governing Body is required by legislation to allocate decision-making responsibility for the non-regulatory activities of Auckland Council to either itself or local boards, in accordance with principles contained in section 17(2) of the Local Government Auckland Council Act 2009 (the Act). This provides as follows:

a)   decision-making responsibility for a non-regulatory activity of the Auckland Council should be exercised by its local boards unless paragraph (b) applies:

b)   decision-making responsibility for a non-regulatory activity of the Auckland Council should be exercised by its Governing Body if the nature of the activity is such that decision-making on an Auckland-wide basis will better promote the well-being of the communities across Auckland because:

i.    the impact of the decision will extend beyond a single local board area; or

ii.    effective decision making will require alignment or integration with other decisions that are the responsibility of the Governing Body; or

iii.   the benefits of a consistent or co-ordinated approach across Auckland will outweigh the benefits of reflecting the diverse needs and preferences of the communities within each local board area.

8.       The allocation of decision-making is published in each long-term plan and annual plan. The allocation of decision-making is reviewed alongside each long-term plan.

9.       The current allocation was determined as part of the Long-term Plan 2015-2025 following a comprehensive review. That review concluded that only minor changes were needed and that the allocation of decision-making worked well and there had been a growing understanding and increasing sophistication of how to use it.

10.     The Governance Framework Review (GFR) involved an extensive review of the allocation of decision-making. The GFR was a two-year project that included extensive engagement with local boards and a joint political working party. As with the Long-term Plan 2015-2025 review the GFR found that the current allocation is well understood, sensible, and generally works well.

11.     There was one area the GFR identified that local boards could be further empowered in their decision-making. That was in regards to service property optimisation (further details in paragraphs 15-16).

12.     Given the extensive review of the allocation of decision-making as part of the GFR, staff limited the scope of current review of the allocation of decision-making for this Long-term Plan 2018-2028 to reflect the service property optimisation outcome from the GFR and to ensure references and language are current. As the scope for the review and the changes proposed to the allocation of decision-making are not significant it has not been necessary to publicly consult on them.

13.     The GFR did identify other decision-making opportunities for local boards, for example greater flexibility of decision-making over service levels. As local boards already have the necessary responsibilities allocated to them, no change is required to the allocation of decision-making to provide for this. Rather, the organisation needs to be in a position to provide local boards with quality advice, for example information on minimum service levels and options for equalizing them, to support local decision-making.   In a further example, some decision-making around local reserves was agreed.  However, this was managed by delegation rather than allocation of responsibility.

 

Tātaritanga me ngā tohutohu / Analysis and advice

14.     The proposed allocation of decision-making is at attachment A. Substantive changes have been highlighted in yellow.

Service property optimisation

15.     The only substantive amendment to the allocation of decision-making is to allocate decision-making for disposal of local service properties and reinvestment of sale proceeds to local boards where this falls within the service property optimisation approach. This implements the Governing Body resolution (GB/2017/118) on this matter that was made as part of the GFR decision-making in September 2017.

16.     The service property optimisation approach was initially adopted by the Finance and Performance Committee in March 2015 (FIN/2015/16). It sets out the purpose and principles for optimisation of underperforming or underutilised local service property. A key element is that sale proceeds from underperforming service property are locally reinvested to advance approved projects or activities on a cost neutral basis.

Catch-all allocation

17.     Local boards were given the opportunity in December 2017 to provide feedback on the proposed allocation of decision-making. All 21 local boards provided feedback on this. Of the 21 local boards, seventeen endorsed the proposed allocation of decision-making and four received or noted it.

18.     Seven local boards also resolved the following:

‘Request the catch-all phrase “All other non-regulatory activities of Auckland Council” defaulting to the Governing Body be referred to the Auckland Governance Political Working Party for review as it has not always been applied appropriately in the past.’

 

19.     From a legal perspective the catch-all allocation is useful as it can be relied upon to identify the ultimate decision-maker. This is consistent with section 17 (1) in the Act (requiring the Governing Body to allocate non-regulatory decisions to either itself or local boards) which staff have interpreted as requiring that all non-regulatory decisions are allocated to either the Governing Body or local boards.

20.     In addition, the allocation of decision-making has been written on an inclusive basis. It does not contain an exhaustive list of all elements that make up an allocated activity. It is intended that the allocation of decision-making be interpreted on a principled and case-by-case basis. Given the broad range of activities undertaken by Auckland Council it is not possible to list in precise detail all elements that are allocated to a local board or the Governing Body.

21.     To respond to the local board feedback, it is recommended that the catch-all allocation be retained, and more context is provided in the allocation of decision-making to explain how allocations are made in-line with the principles in section 17 (2) of the Act (see paragraph 7 of this report for detail). In the allocation of decision-making presented for adoption, this context has been included in both an introduction to the allocation of decision-making and as an explanatory note alongside the catch-all allocation.

22.     Unfortunately, timing did not permit for this issue to be discussed at a meeting of the Auckland Governance Political Working Party. Instead a memo was circulated to members of the political working party seeking feedback. While no feedback was received from members of the political working party, staff discussed their recommended approach with the chair to obtain the view of the political working party. The staff recommendation was supported by the Auckland Governance Political Working Party through the chair of the political working party.


 

 

Delegation

23.     Whilst not part of the allocation of decision-making itself, the preamble describes what powers have been delegated to local boards. This has been updated in the version at attachment A, to note the Governing Body’s September 2017 decision (GB/2017/117). This delegation was an outcome of the GFR.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

24.     As noted in paragaraph 17, local boards were given the opportunity in December 2017 to provide feedback on the proposed allocation. All 21 local boards provided feedback on this. The verbatim resolutions of all local boards are included in attachment B.

25.     In addition to resolving that local boards be given decision-making responsibilities for service property optimisation, at their September 2017 meeting the Governing Body resolved that appropriate support be given to local boards to enable them to utilise the service property optimisation approach. This work is being undertaken as part of the wider project to implement the resolutions from the GFR and will support the implementation of this change to the allocation of decision-making.

Tauākī whakaaweawe Māori / Māori impact statement

26.     There are no particular impacts to Māori in relation to this decision.

Ngā ritenga ā-pūtea / Financial implications

27.     There are minimal resourcing implications as a result of the service property optimisation change to the allocation of decision-making. Panuku Development Auckland Limited (Panuku) already supports local boards to identify opportunities and work through the process of service property optimisation. Any additional support local boards need to act with this decision-making responsibility will be explored as part of the implementation of GFR resolutions (refer to paragraph 25 for details).

Ngā raru tūpono / Risks

28.     No significant risks have been identified in respect of this decision.

Ngā koringa ā-muri / Next steps

29.     Local boards and Panuku will be informed of the outcome of this decision. Panuku staff have worked alongside council staff in this process so are expecting this change.

30.     The allocation of decision-making will be published in the Long-term Plan 2018-2028 and will become effective from 1 July 2018.

 


 

 

Ngā tāpirihanga / Attachments

No.

Title

Page

a

Proposed Allocation of Decision-Making Responsibility for Non-Regulatory Activities

107

b

Local board resolutions on the proposed Allocation of Decision-Making Responsibility for Non-Regulatory Activities

121

     

Ngā kaihaina / Signatories

Author

Christine Gulik - Principal Advisor Policy & Planning

Authorisers

Louise Mason - GM Local Board Services

Matthew Walker - Acting Group Chief Financial Officer

Phil Wilson - Governance Director

Stephen Town - Chief Executive

 


Governing Body

28 June 2018

 

 


 


 


 


 


 


 


 


 


 


 


 


 


 


Governing Body

28 June 2018

 

 


 


 


 


 


 


 


Governing Body

28 June 2018

 

 

Adoption of the Revenue and Financing Policy

 

File No.: CP2018/10274

 

  

 

Te take mō te pūrongo / Purpose of the report

1.       To consider the feedback received on the proposed amendments to the Revenue and Financing Policy that were consulted on alongside the Long-term Plan 2018-2028 and advises the Governing Body on the adoption of the proposed changes.

Whakarāpopototanga matua / Executive summary

2.       The council consulted on a number of proposed changes to the sources and levels of funding available to it to reflect the changes proposed in the Long-term Plan 2018-2028.

3.       A total of 104 submitters commented on the proposed changes, 36 agreed with the changes while 62 disagreed and 6 neither agreed nor disagreed. Feedback received as part of this consultation was consistent with the feedback received on individual issues consulted on as part of the Long-term Plan 2018-2028 and already considered by the Finance and Performance Committee on 31 May 2018.

4.       Officers recommend that the Revenue and Financing Policy, as amended to reflect the decisions made by the Governing Body on 31 May 2018, be adopted.

5.       The council is required to adopt the Revenue and Financing Policy before adoption of the Long-term Plan 2018-2028.

 

Ngā tūtohunga / Recommendation/s

That the Governing Body:

a)      adopt the Revenue and Financing Policy in Attachment A of the agenda report.

 

Horopaki / Context

6.       The Revenue and Financing Policy provides predictability and certainty about sources and levels of funding available to the council. It explains the rationale for, and the process of selecting various tools to fund the operating and capital expenditures of the council.

7.       The Local Government Act 2002 requires the council to adopt a Revenue and Financing Policy, and to include in its Long-term Plan 2018-2028 the Revenue and Financing Policy that is adopted.

Tātaritanga me ngā tohutohu / Analysis and advice

8.       The council consulted on a number of proposed changes to the sources and levels of funding available to council to reflect the changes proposed through the Long-term Plan 2018-2028. This included:

·        making provision for a Regional Fuel Tax as a funding source for transport operating and capital expenditure

·        alignment of funding sources for operating and capital expenditure for each activity to reflect the changes in the activity structure

·        making provision for changes to the way general rates and the accommodation provider targeted rate are charged to online accommodation providers

 

·        making provision for new targeted rates to fund

o   accelerated investment in improving water quality

o   additional investment in environmental initiatives

o   the introduction of the food scraps collection service

o   additional investment in transport in the Rodney Local Board area.

9.       A small amount of feedback was received, with 104 submitters commenting on the proposed changes. 36 agreed with the changes while 62 disagreed and 6 neither agreed nor disagreed. Key themes were:

·        those who supported the outcomes being achieved also suggested that new sources of funding are necessary

·        concerns about affordability, particularly the impact of the Regional Fuel Tax on lower socioeconomic groups

·        food scraps targeted rate not fair on those who already compost.

10.     This feedback is consistent with the feedback received on individual issues consulted on as part of the Long-term Plan 2018-2028 and already considered by the Finance and Performance Committee on 31 May 2018. Officers recommend that the Revenue and Financing Policy, as amended to reflect the decisions made by the Governing Body on 31 May (attached), be adopted.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

11.     The Governing Body has decision making authority for the Revenue and Financing Policy.

12.     Local boards considered the proposed changes to funding sources and levels as set out in the consultation on the Long-term Plan 2018-2028 at their meetings in April/May 2018. Local board feedback on the proposed changes was considered at the Finance and Performance Committee meeting on 31 May 2018.

Tauākī whakaaweawe Māori / Māori impact statement

13.     Auckland Council has an important role in enabling mana whenua and our Māori communities to fully contribute to, and benefit from, Auckland becoming a world class city where talent wants to live. Activities that contribute to this are identified in Attachment C to report Adoption of the Long-term Plan 2018-2028 (10-year Budget) on this agenda.

14.     Some decisions in the Long-term Plan 2018-2028, which are reflected in the Revenue and Financing Policy, most notably the introduction of a Regional Fuel Tax could negatively impact some lower socio-economic communities. Māori tend to represent a high proportion of these communities. However, in the longer term many of the projects in the Long-term Plan 2018-2028, particularly transport projects, should have a positive impact for these communities.

Ngā ritenga ā-pūtea / Financial implications

15.     There are no financial implications from the recommendations in this report.

Ngā raru tūpono / Risks

16.     The council’s proposed rates decisions are based on this Revenue and Financing Policy. Legally, rates must be set in accordance with the long-term plan (including the Revenue and Financing Policy) and so if this Revenue and Financing Policy is not adopted then it will raise the question about the lawfulness of any inconsistent rates decisions.

Ngā koringa ā-muri / Next steps

17.     The Revenue and Financing Policy will be included in the Long-term Plan 2018-2028 that is on the Governing Body’s agenda (under a separate report) for adoption.

 

Ngā tāpirihanga / Attachments

No.

Title

Page

a

Revenue and Financing Policy

133

     

Ngā kaihaina / Signatories

Authors

Andrew Duncan - Manager Financial Policy

Aaron Matich - Principal Advisor – Financial Policy

Beth Sullivan - Principal Advisor Policy

Authorisers

Ross Tucker - Acting General Manager, Financial Strategy and Planning

Matthew Walker - Acting Group Chief Financial Officer

Stephen Town - Chief Executive

 


Governing Body

28 June 2018

 

 


 


 


 


 


 


 


 


 


 


 


 


 


Governing Body

28 June 2018

 

 

Adoption of the Long-term Plan 2018-2028 (10-year Budget)

 

File No.: CP2018/09845

 

  

 

Te take mō te pūrongo / Purpose of the report

1.       To adopt the Long-term Plan 2018-2028 (10-year Budget), including 21 Local Board Agreements.

Whakarāpopototanga matua / Executive summary

2.       On 31 May 2018, following the consideration of public feedback received and other relevant information, the Governing Body agreed the key decisions needed to finalise the 10-year Budget 2018-2028. The 10-year Budget has been prepared reflecting these decisions. In particular, it includes:

·   prospective financial statements and other financial information based on the budget decisions made on 31 May 2018

·   rating policy, reflecting decisions made on 31 May 2018

·   local board agreements and other local content – as adopted by local boards between 5 and 7 June 2018.

3.       The Audit and Risk Committee has been involved in the 10-year Budget process since mid-September 2017. On 25 June 2018 the Audit and Risk Committee received a report on the key controls and risks relating to the 10-year Budget.  The Audit and Risk Committee resolved to:

·    advise the Governing Body that effective internal control and risk management processes have been followed during the preparation of the 10-year Budget

·    advise the Governing Body that there are no significant outstanding audit issues.

4.       The Local Government Act 2002 requires the council to adopt a long-term plan before 1 July 2018. Following adoption, staff will finalise documentation for distribution.

5.       Given the document reflects the decisions made on the 31 May 2018 and that the document attached to this report has been confirmed as being compliant with both legal and audit requirements, only limited minor changes can be made without triggering further audit and legal review.

 

Ngā tūtohunga / Recommendation/s

That the Governing Body:

a)      adopt the Long-term Plan 2018-2028 (10-year Budget), including 21 local board agreements

b)      delegate the authority and responsibility for agreeing any required minor editorial changes and the correction of minor errors to the Long-term Plan 2018-2028 (10-year Budget) document to the chair of the Finance and Performance Committee, and the Group Chief Financial Officer.

 


 

 

Horopaki / Context guidance

6.       Once every three years, the council is required to adopt a long-term plan (titled the 10-year Budget), and in the intervening years an annual plan. These plans set out the service levels and budgets for the coming year, and provide the basis on which the council’s rates are set.

7.       For each financial year, the council must have a local board agreement (as agreed between the Governing Body and the local board) for each local board area. These local board agreements set out priorities, budgets and intended levels of service for local activities, and the capital and operating expenditure required to fund these activities. The local board agreements for the 2018/2019 financial year have been developed as part of the long-term plan process, and have been adopted by the local boards.

8.       For each financial year, the Tūpuna Maunga Authority and the council must agree an annual operational plan to provide a framework in which the council will carry out its functions for the routine management of the maunga and administered lands. The Tūpuna Maunga Authority Operational Plan must be prepared and adopted concurrently with the council’s long-term plan and be included in summary form in the long-term plan.  The Tūpuna Maunga Authority adopted the Operational Plan and Summary on 18 June 2018.

Tātaritanga me ngā tohutohu / Analysis and advice

Consultation process

9.       In December 2017, the Governing Body agreed the consultation topics for the 10-year Budget.

10.     In late December and January the Consultation Document and Supporting Information were prepared and audited by Audit New Zealand.

11.     On 21 February 2018, the Governing Body adopted the Consultation Document, Supporting Information, and agreed the approach to consultation. The Deputy Auditor General supplied an independent auditors’ report which was inserted into the Consultation Document.

12.     Public consultation ran between 28 February 2018 and 28 March 2018 and aligned consultation with the Auckland Plan 2050. A second transport specific consultation ran between 1 and 14 May 2018.

13.     The following approach was used to ensure decision-makers were well informed about feedback received:

·   staff with specific subject matter expertise reviewed feedback received relevant to their areas of expertise and summarised the issues raised

·   reports were prepared which summarised the feedback. These were discussed at the Finance and Performance Committee workshop on 9 May 2018. These reports did not contain analysis of the implications of the feedback received as this was included in decision-making reports considered by the Finance and Performance Committee on 31 May 2018

·   21 reports were prepared summarising the feedback for each local board area and were considered by each local board between 26 April and 10 May 2018.

14.     In addition to the feedback summary reports, all feedback received was made available to elected members prior to the Finance and Performance Committee briefing on 9 May 2018. In May 2018, the feedback summary report, along with all submissions, was made available to the public via the Auckland Council website.

Final decision making

15.     On 31 May 2018, the Finance and Performance Committee recommended to the Governing Body the decisions required to finalise the 10-year Budget 2018-2028. The Governing Body subsequently agreed these decisions. This included decisions required to finalise local board agreements.

16.     Following decisions made by the Governing Body on 31 May 2018, agreements were prepared for each local board that reflected:

·   the impact of decisions made by the Governing Body on 31 May 2018

·   re-prioritisation decisions by local boards of locally driven initiative (discretionary) budgets

·   the allocation of central costs (including depreciation, interest, corporate overheads and staff costs)

·   minor administrative adjustments, if any.

17.     Decisions made on 31 May 2018 at the Finance and Performance Committee and Governing Body have been incorporated into the 10-year Budget 2018-2028.

18.     Local board business meetings were held between 5 and 7 June 2018, where all 21 local boards adopted their agreements for 2018/2019.  The resolutions can be found in Attachment A of this report.

Preparation of the final LTP (10-year Budget) document

19.     Following the decisions on the 31 May 2018, three volumes (Attachments B, C and D) have been prepared that make up the 10-year Budget for adoption today. These are:

·   Volume 1 – Provides an overview of the key highlights and priorities for 2018-2028. It includes the prospective financial statements and other key financial information.  This volume also contains the Auditor General report on the 10-year Budget (Attachment B)

·   Volume 2 – Provides a strategic overview and includes Auckland’s 30-year Infrastructure Strategy and our Financial Strategy.  It also sets out our activities and services, key policy information and information on our council-controlled organisations (CCOs), including the CCO Accountability Policy which was adopted by the Finance and Performance Committee on 31 May 2018 (Attachment C)

·   Volume 3 - Includes the local board agreements and other local information

(Attachment D)

20.     When preparing, consulting on and making decisions on the 10-year Budget, the council has followed a thorough process, including considering:

·   significance and materiality

·   the extent of the council’s resources

·   statutory decision-making practices in the Local Government Act 2002 (Part 6)

·   content requirements for a long-term plan, and

·   financial management requirements.

21.     Council’s internal legal team has reviewed the 10-year Budget and has confirmed that it complies with the requirements of the Local Government Act 2002, the Local Government (Auckland Council) Act 2009, and related legislation, and that it reflects the decisions made by the Governing Body on 31 May 2018.

22.     Audit New Zealand has worked closely with council staff finalising the 10-year Budget document. Their feedback has been incorporated. A final Auditor’s report will be received at Governing Body meeting on the 28 June 2018 and will be incorporated into the final document (Volume 1).

 

23.     On 25 June 2018 Audit and Risk Committee received a report on the key controls and risk relating to the 10-year Budget. The Audit and Risk Committee resolved to:

·    advise the Governing Body that effective internal control and risk management processes have been followed during the preparation of the 10-year Budget

·    advise the Governing Body that there are no significant outstanding audit issue.

24.     The Audit and Risk Committee also noted some high level issues with how some key matters were presented in the 10-year Budget document. The committee therefore requested that management consider the presentation of these issues with the objective of improving clarity and transparency. Staff are currently working through some wording changes to the document to achieve this.

25.     Given the document reflects the decisions made on 31 May 2018 and that the document attached to this report has been confirmed as being compliant with both legal and audit requirements, only limited minor changes can be made without triggering further audit and legal review.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

26.     Local boards have been involved in developing the 10-year Budget. Prior to making final decisions, discussions were held between the Finance and Performance Committee and local boards. On 31 May 2018, the Finance and Performance Committee was also provided with a summary report and all resolutions on advocacy and regional issues passed by local boards regarding decision making for the 10-year Budget.

Tauākī whakaaweawe Māori / Māori impact statement

27.     Auckland Council has an important role in enabling mana whenua and our Māori communities to fully contribute to, and benefit from, Auckland becoming a world class city where talent wants to live. Activities that contribute to this are identified in Attachment C, Part 1.2.

28.     Some decisions in the 10-year Budget, most notably the introduction of a Regional Fuel Tax could negatively impact some lower socio-economic communities. Māori tend to represent a high proportion of these communities. However, in the longer term many of the projects in the 10-year Budget, particularly transport projects, should have a positive impact for these communities.

Ngā ritenga ā-pūtea / Financial implications

29.     The 10-year Budget sets the council’s budget for the following 10 years.  The financial decisions made on 31 May 2018 have been reflected in the final 10-year Budget attached to this report.

Ngā raru tūpono / Risks

30.     There are no significant risks relating to the adoption of the Long-term Plan 2018-2028 (10-year Budget) itself.

Ngā koringa ā-muri / Next steps

31.     The Local Government Act 2002 requires the council to adopt a long-term plan for the period 2018-2028 before 1 July 2018.  Adoption of the 10-year Budget 2018-2028 is required before the council can set rates for 2018/2019, which will be considered in a separate report following adoption on today’s agenda.

32.     Following adoption of the 10-year Budget 2018-2028 today, staff will prepare the final documentation for distribution. A digital version of the document will be available on the council’s website and printed copies will be available to view at libraries, service centres and local board offices. Copies will also be provided to the Secretary for Local Government, to the Parliamentary Library and the Auditor-General to meet legislative requirements and to council’s trustee companies who oversee our debenture trust deed requirements in New Zealand and other jurisdictions.  Hard copies will also be available on request.

 

Ngā tāpirihanga / Attachments

No.

Title

Page

a

Local board resolutions to adopt Local Board Agreements 2018/2019

153

b

The Draft 10-year Budget 2018-2028 (Long-term Plan 2018-2028) Volume 1: Overview (Under Separate Cover)

 

c

The Draft 10-year Budget 2018-2028 (Long-term Plan 2018-2028) Volume 2: Our detailed budgets, strategies and policies (Under Separate Cover)

 

d

The Draft 10-year Budget 2018-2028 (Long-term Plan 2018-2028) Volume 3: Local Board Information and Agreements (Under Separate Cover)

 

     

Ngā kaihaina / Signatories

Authors

Kylie Evans - Programme Manager

Michael Burns – Acting Manager Financial Strategy

Authorisers

Ross Tucker - Acting General Manager, Financial Strategy and Planning

Matthew Walker - Acting Group Chief Financial Officer

Stephen Town - Chief Executive

 


Governing Body

28 June 2018

 

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Governing Body

28 June 2018

 

 

Rates Setting 2018/2019

 

File No.: CP2018/10273

 

  

 

Te take mō te pūrongo / Purpose of the report

1.       To advise the Governing Body on the setting of rates for the 2018/2019 financial year.

Whakarāpopototanga matua / Executive summary

2.       This report contains recommendations as to the resolutions that are needed for the Governing Body to set the rates for the 2018/2019 financial year. Legislation requires that rates are set by resolution of the council after the adoption of the Long-term Plan 2018-2028 and that they must be set in accordance with the:

·        relevant provisions of the council’s long-term plan (including the Revenue and Financing Policy); and

·        Funding Impact Statement for the 2018/2019 financial year (which is contained in the Long-term Plan 2018-2028).

3.       The recommendations reflect the following agreed rates related decisions included in the Long-term Plan 2018-2028:

·        an average general rates increase of 2.5 per cent

·        a Uniform Annual General Charge (UAGC) of $414

·        recommencing the Long-term Differential Strategy (LTDS) from 2018/2019

·        expiry of the Interim Transport Levy

·        introduction of a Water Quality targeted rate, Natural Environment targeted rate and Rodney Local Board transport targeted rate

·        changes to how rates are charged for online accommodation providers1

·        introduction of a food scraps targeted rate for the former Papakura district

·        BID expansion in Papakura.

4.       The recommendations in this report also set the instalment dates, early payment discount, and penalties to be applied for late payment for the 2018/2019 financial year.

5.       Setting the rates will generate $1.8 billion in revenue for the council. This equates to 38 per cent of council’s total operating revenue.

6.       Revaluation of all land in the region was performed in 2017. The 2018/2019 financial period will be the first year the new property values will be used for assessing rates. As a result, ratepayers will see varying changes in their rates depending on how valuations have shifted.

 

 

 

 

 

 

 

 

 

 

 

 

 

-------------------------------------------------------------

1 Includes new general rates and Accommodation Provider Targeted Rate categories for medium-occupancy online accommodation providers (29-135 booked nights per annum) and moderate-occupancy online accommodation providers (136-180 booked nights per annum

 

Ngā tūtohunga / Recommendation/s

That the Governing Body:

a)      resolve under the Local Government (Rating) Act 2002 to set rates and due dates for the 2018/2019 financial year and to authorise the addition of penalties as follows:

i)        that a Uniform Annual General Charge be set, for all rateable land, at $414 (including GST) per separately used or inhabited part of a rating unit (SUIP)

ii)       that a general rate be set for all rateable land based on the capital value of the land and at different rates in the dollar for different categories of land as set out in the table below:

Property category

Rate in the dollar for 2018/2019 (including GST) ($)

Urban business

0.00512269

Urban residential

0.00183316

Urban moderate-occupancy online accommodation provider

0.00347792

Urban medium-occupancy online accommodation provider

0.00265554

Rural business

0.00461042

Rural residential

0.00164984

Rural moderate-occupancy online accommodation provider

0.00313013

Rural medium-occupancy online accommodation provider

0.00238999

Farm and lifestyle

0.00146653

No road access

0.00045829

Uninhabitable islands

0.00000000

 

iii)      that a Water Quality targeted rate be set on the capital value of all rateable land except land categorised as uninhabited islands, as defined for rating purposes, of an amount of $0.00010677 (including GST) per dollar of capital value will be applied to all rateable land categorised as business (Urban business and Rural business), and $0.00006076 (including GST) per dollar of capital value to all rateable land not categorised as business (Urban residential, Rural residential, Farm and lifestyle, urban medium-occupancy online accommodation provider, rural medium-occupancy online accommodation provider, urban moderate-occupancy online accommodation provider, rural moderate-occupancy online accommodation provider, and No road access) as defined for rating purposes

iv)      that a Natural Environment targeted rate be set on the capital value of all rateable land except land categorised as uninhabited Islands, as defined for rating purposes, of an amount of $ 0.00007603 (including GST) per dollar of capital value applied to all rateable land categorised as business (Urban business and Rural business), and $ 0.00004326  (including GST) per dollar of capital value to all rateable land not categorised as business (Urban residential, Rural residential, Farm and lifestyle, urban medium-occupancy online accommodation provider, rural medium-occupancy online accommodation provider, urban moderate-occupancy online accommodation provider, rural moderate-occupancy online accommodation provider, and No road access) as defined for rating purposes

 

 

 

 

v)      that waste management targeted rates be set differentially for different categories of land at different fixed amounts, as set out in the table below:

Service

Differential group

Amount of targeted rate for 2018/2019 (including GST) $

Charging basis

Base service

Rating units in the former Auckland City

100.39

Per service available

Rating units in the former Franklin District, Manukau City, North Shore City, Papakura, Rodney District and Waitakere City

100.39

Per SUIP

Base service excluding recycling

Rating units in the former Auckland City

35.25

Per service available

Standard refuse

 

Rating units in the former Auckland City

123.78

Per service available

Rating units in the former Manukau City

123.78

Per SUIP

Large refuse

Rating units in the former Auckland City and Manukau City

58.18

Per service available

Additional recycling

All rating units

65.14

Per service available

Food waste

Rating units in the former Papakura District

67.00

Per SUIP

Note to table: For these purposes the various waste services are as set out in the Auckland Waste Management and Minimisation Plan and the Funding Impact Statement in the council’s Long-term Plan 2018-2028.

vi)      that a city centre targeted rate be set differentially for all rateable land in the urban business, urban residential, urban moderate-occupancy online accommodation provider, and urban medium-occupancy online accommodation provider differential categories, as defined for rating purposes, and in the city centre area, of an amount of $ 0.00126779 (including GST) per dollar of the capital value of the rating unit for urban business rating units and of a fixed amount of $60.42 (including GST) per separately used or inhabited part (SUIP) of a rating unit for urban residential, urban moderate-occupancy online accommodation provider, and urban medium-occupancy online accommodation provider rating units

vii)     that an accommodation provider targeted rate be set for all rateable land that is in the urban business, rural business, urban moderate-occupancy online accommodation provider, rural moderate-occupancy online accommodation provider, urban medium-occupancy online accommodation, or rural medium-occupancy online accommodation provider differential categories, as defined for rating purposes, and that is located within Zones A or B, and that is operated as Tier one, Tier two, Tier three, Tier four, Tier five, or Tier six accommodation provider type, and be set differentially for different categories of land per dollar of the portion of capital value of the rating unit used for commercial accommodation purposes as set out in the table below:

 

 

 

 

 

Category

Rate in the dollar of capital value (including GST)

Tier one – Zone A

0.00567049

Tier two – Zone A

0.00340230

Tier three – Zone A

0.00283525

Tier four – Zone A

0.00170115

Tier five – Zone A

0.00141762

Tier six – Zone A

0.00085057

Tier one – Zone B

0.00283525

Tier two – Zone B

0.00170115

Tier three – Zone B

0.00141762

Tier four – Zone B

0.00085057

Tier five – Zone B

0.00070881

Tier six – Zone B

0.00042529

Note to table: For the purposes the accommodation provider targeted rate the various Zones and Tiers are set out in the Funding Impact Statement in the council’s Long-term Plan 2018-2028.

viii)    that a Rodney Local Board Transport targeted rate be set for all rateable land in the Rodney Local Board area except land categorised as uninhabited Islands as defined for rating purposes, of an amount of $150 (including GST) per separately used or inhabited part of a rating unit (SUIP)

ix)      that Business Improvement District (BID) targeted rates be set for all rateable land in the urban business or rural business differential categories, as defined for rating purposes, within the defined Business Improvement District area, of a fixed amount per rating unit and/or a rate in the dollar of capital value of the rating unit, as set out in the table below:

BID area

Fixed rate per rating unit for 2018/2019 (including GST) ($)

Rate in the dollar for 2018/2019 to be multiplied by the capital value of the rating unit

(including GST) ($)

Avondale

0.00

0.00116859

Birkenhead

0.00

0.00088548

Blockhouse Bay

0.00

0.00144837

Browns Bay

0.00

0.00053238

Devonport

250.00

0.00061385

Dominion Road

0.00

0.00052696

Ellerslie

0.00

0.00192286

Glen Eden

0.00

0.00107244

Glen Innes

0.00

0.00104201

Greater East Tāmaki

195.00

0.00003089

Heart of the City

0.00

0.00042166

Howick

0.00

0.00088557

Hunters Corner

0.00

0.00072542

Karangahape Road

0.00

0.00051298

Kingsland

0.00

0.00039396

Mairangi Bay

250.00

0.00126774

Māngere Bridge

0.00

0.00140697

Māngere East Village

0.00

0.00029693

Māngere Town

0.00

0.00401509

Manukau Central

0.00

0.00032794

Manurewa

0.00

0.00092294

Milford

0.00

0.00054761

Mt Eden Village

0.00

0.00056159

New Lynn

0.00

0.00054930

Newmarket

0.00

0.00066205

North Harbour

150.00

0.00009373

North West District

250.00

0.00020209

Northcote

0.00

0.00236693

Old Papatoetoe

0.00

0.00146794

Onehunga

0.00

0.00109896

Orewa

0.00

0.00083269

Ōtāhuhu

0.00

0.00064901

Ōtara

0.00

0.00155399

Panmure

0.00

0.00142816

Papakura

0.00

0.00073930

Parnell

0.00

0.00051100

Ponsonby

0.00

0.00058283

Pukekohe

0.00

0.00050761

Remuera

0.00

0.00111725

Rosebank

0.00

0.00039412

South Harbour

0.00

0.00044770

St Heliers

0.00

0.00105659

Takapuna

0.00

0.00036465

Te Atatu

0.00

0.00128390

Torbay

0.00

0.00090904

Uptown

0.00

0.00014740

Waiuku

0.00

0.00099810

Wiri

0.00

0.00021195

 

 

 

 

x)      that the Ōtara-Papatoetoe and Māngere-Ōtāhuhu swimming pool targeted rates be set for all rateable land in the urban residential, rural residential, urban moderate-occupancy online accommodation provider, urban medium-occupancy online accommodation provider, rural moderate-occupancy online accommodation provider, or rural medium-occupancy online accommodation provider differential categories, as defined for rating purposes, located in the respective Māngere–Ōtāhuhu Local Board or Ōtara-Papatoetoe Local Board area, of a fixed amount per separately used or inhabited part of a rating unit (SUIP), as set out in the table below:

Local board area

Fixed rate for each separately used or inhabited part of a rating unit for 2018/2019 (including GST) ($)

Māngere-Ōtāhuhu

31.94

Ōtara-Papatoetoe

29.94

 

xi)      that the Riverhaven Drive targeted rate be set on land in Riverhaven Drive, Rodney, in respect of which the council has provided financial assistance for the construction of a road that gives access to the rating units, of an amount of $10,317.02 (including GST) per rating unit

xii)     that the Glorit flood gate restoration targeted rate be set at an amount per hectare of land in the three properties below protected by the facility (as assessed by the council), as follows:

Valuation number

Legal description (abbreviated)

Area of benefit (Ha)

Amount of rate ($) (including GST)

00910-00102

Sec 27 SO 59120

245

40,689.21

00910-00502

Lot 5 DP 127940

2

332.15

00910-12128597

Lot 1 DP 497349

17.5

2,906.37

 

xiii)    that the Waitakere rural sewerage targeted rate be set for all land in the district of the former Waitakere City Council which has an on-site waste management system and in respect of which the council has available the service of pumping out the system and which is scheduled to take place within the three-year period commencing 1 July 2018, of an amount of $194.54 (including GST) for each such on-site waste management system

xiv)    that the Retro-fit Your Home targeted rate be set on land in respect of which the council has provided financial assistance under the Retro-fit your home scheme, at different levels based on the extent of the outstanding assistance by reference to the year that the ratepayer started repaying the financial assistance by this targeted rate, of an amount set out in the table below:

Year of repayment

Rate in the dollar for 2018/2019 to be multiplied by the ratepayers outstanding balance as at 30 June 2018 (including GST) ($)

1

0.14678592

2

0.16045527

3

0.17812329

4

0.20178998

5

0.23505519

6

0.28511857

7

0.36877905

 

xv)    that the Kumeu Huapai Riverhead Wastewater targeted rate be set on land in respect of which the council has provided financial assistance to connect to the Kumeu Huapai Riverhead pressurised wastewater scheme, at different levels based on the extent of the outstanding assistance by reference to the year that the ratepayer started repaying the financial assistance by this targeted rate, of an amount set out in the table below:

Year of repayment

Rate in the dollar for 2018/2019 to be multiplied by the ratepayers outstanding balance as at 30 June 2018 (including GST) ($)

1

0.11952911

2

0.12467972

3

0.13067747

4

0.13773481

6

0.15630249

 

xvi)    that the On-site wastewater systems (septic tank) upgrades targeted rate be set on land in respect of which the council has provided financial assistance for the replacement or upgrade of failing on-site wastewater systems (septic tanks) in the west coast lagoons and Little Oneroa catchments, at different levels based on the extent of the outstanding assistance by reference to the year that the ratepayer started repaying the financial assistance by this targeted rate, of an amount set out in the table below:

Year of repayment

Rate in the dollar for 2018/2019 to be multiplied by the ratepayers outstanding balance as at 30 June 2018 (including GST) ($)

1

0.11952911

 

xvii)   that the Point Wells Wastewater targeted rate be set on land in respect of which the council has provided financial assistance to connect to a pressure wastewater collection system in Point Wells, of an amount per separately used or inhabited part of a rating unit based on the extent of the financial assistance as shown in the following table:

Total assistance provided

Amount of targeted rate per rating unit for 2018/2019 (including GST) ($)

$8,000

$674.60

$8,500

$716.76

$9,000

$758.92

$9,500

$801.08

$10,000

$843.25

 

xviii)  that the Jackson Crescent Wastewater targeted rate be set on land in respect of which the council has provided financial assistance to connect to a wastewater collection scheme in the Jackson Crescent, Martins Bay area, of an amount of $608.88 (including GST) per rating unit

xix)    that for the purposes of the above rates, the definitions of accommodation provider, the city centre area, the various Business Improvement Districts, the expression "separately used or inhabited part of a rating unit" and the differential categories for rates charged on a differential basis are as set out in the Funding Impact Statement in the council's Long-term Plan 2018-2028

 

 

xx)    that for the 2018/2019 financial year, the rates be payable in four equal instalments, on the following due dates:

Instalment

Due Date

1

31 August 2018

2

28 November 2018

3

28 February 2019

4

28 May 2019

 

xxi)    that a penalty of ten per cent of any portion of any instalment of rates assessed in the 2018/2019 rating year that is not paid by the due date for payment of that instalment be added to the amount of unpaid rates. The penalty will be added on the day following the due date, being 1 September 2018, 29 November 2018, 1 March 2019, and 29 May 2019 respectively

xxii)   that a further penalty of ten per cent of any rates assessed in any financial year prior to 1 July 2018 that remain unpaid on 5 July 2018, be added on 6 July 2018

xxiii)  that a further penalty of ten per cent of any rates to which a penalty has been added under resolution (xxii) above if those rates are unpaid on 7 January 2019, be added on 8 January 2019

xxiv)  that in accordance with the council’s Early Payment Discount Policy the discount for the early payment of rates be set at 0.87 per cent of the 2018/2019 rates, if those rates, together with any outstanding prior years’ rates and penalties, are paid in full on or before the due date of the first instalment (31 August 2018).

 

 

Horopaki / Context

7.       At its meeting on 31 May 2018, the Governing Body agreed the Finance and Performance Committee recommendations regarding rates policy issues for inclusion in the Long-term Plan 2018-2028. These included:

·        general rates increase of 2.5 per cent

·        recommencing the Long-term differential strategy from 2018/2019

·        expiry of the Interim Transport Levy

·        introduction of a Water Quality targeted rate, Natural Environment targeted rate and Rodney Local Board transport targeted rate

·        changes to how rates are charged for online accommodation providers

·        introduction of a food scraps collection service funded from solid waste targeted rates

·        BID expansion in Papakura.

8.       Additionally, the council has proposed to set the On-site wastewater systems (septic tank) upgrades targeted for the first time as financial assistance has been provided under this scheme for the replacement or upgrade of failing on-site wastewater systems (septic tanks) in the west coast lagoons and Little Oneroa catchments.

Tātaritanga me ngā tohutohu / Analysis and advice

Rates resolution

9.       For the council to assess rates for the 2018/2019 financial year, section 23 of the Local Government (Rating) Act 2002 (LG(R)A) requires the council to set the rates by resolution.  The resolutions contained in this report are consistent with the relevant legislation and the Long-term Plan 2018-2028.

10.     The LG(R)A requires that the instalment due dates and any penalties must also be set in the same resolution as those used to set the rates. The resolutions necessary for the Governing Body to set the rates, instalment due dates and penalties for the 2018/2019 financial year are included in the recommendations in this report.

Business Improvement District targeted rates

11.     The council uses targeted rates to fund Business Improvement District (BID) programmes where businesses have agreed to work together, with the support of the council, to improve their business environment.

12.     Consultation on the Long-term Plan 2018-2028 included possible extension to the existing Papakura BID boundary.  A successful ballot for the extension has been undertaken.

13.     The resolutions necessary for the Governing Body to set the BID rates for 2018/2019 are included in recommendations in this report.

Early payment discount, late payment penalties and instalment dates

14.     This report recommends that the rates be payable in four equal instalments on:

·        instalment 1: 31 August 2018

·        instalment 2: 28 November 2018

·        instalment 3: 28 February 2019

·        instalment 4: 28 May 2019.

15.     Staff recommend that a ten per cent penalty be payable for late payment of rates for each rates instalment due date, and that a ten per cent penalty on the previous years’ rates arrears be added at the beginning of the financial year (or five working days after the rates resolution, whichever is the later) and then again six months later. It is necessary to set the penalty rate at ten per cent, as used by all the previous councils, to discourage the use of the council as a bank by ratepayers. Costs incurred by the council from the late payment of rates must inevitably be met by those ratepayers that pay on time. Most councils use a ten per cent penalty.

16.     The early payment discount policy is available to ratepayers who pay their full year’s rates before the due date of the first rates instalment. Under this policy, the council provides a discount based on the council’s forecast short term borrowing cost, 2.35 per cent for 2018/2019. This passes on council’s interest cost saving to those ratepayers who pay early. For the early payment discount to remain cost neutral the early payment discount rate should be set at 0.87 per cent.

17.     The resolutions necessary for the Governing Body to set the early payment discount, late payment penalty, and instalment dates are included in the recommendations in this report.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

18.     The Governing Body has decision-making authority for setting rates.

19.     Local boards’ views on the rating policy proposals were considered as part of decision making on the Long-term Plan 2018-2028 on 31 May 2018.

Tauākī whakaaweawe Māori / Māori impact statement

20.     The council does not hold information on the ethnicity of ratepayers, so is not able to identify the exact impact of the policy options on Māori. The rates recommendations in this report will have a similar impact on Māori as it will on other ratepayers.

Ngā ritenga ā-pūtea / Financial implications

21.     Setting the rate will generate $1.8 billion in revenue for the council. This equates to 38 per cent of council’s total operating revenue.

Ngā raru tūpono / Risks

22.     The budget is set based on the assumption that rates will be invoiced on time. A delay in setting the rates may cause issues in delivery of the rates assessment/invoice in time for the first instalment due date. It will also cause delays to when the arrears penalty can be applied.  Delaying the setting of rates may result in increased administrative costs to the council.

23.     Setting the rates included in this report requires the adoption of amendments to the Revenue and Financing policy with regard to the recommencing of the Long-term differential strategy and the introduction of a Water Quality targeted rate, a Natural Environment targeted rate, Rodney Local Board Transport Targeted Rate, an additional food waste collection service funded by waste management targeted rates, and expiry of the Interim Transport Levy.

24.     The recommendations in this report have been checked by the legal department for legislative compliance.

Ngā koringa ā-muri / Next steps

25.     A copy of the rates resolution will be sent to the Secretary of Local Government within 20 working days of adopting the rates resolution.

26.     The rates assessment will take place in July and ratepayers will receive the first instalment invoice from 1 August 2018.

 

Ngā tāpirihanga / Attachments

There are no attachments for this report.    

Ngā kaihaina / Signatories

Authors

Andrew Duncan - Manager Financial Policy

Eric Wen - Advisor -  Financial Polciy

Aaron Matich - Principal Advisor – Financial Policy

Beth Sullivan - Principal Advisor Policy

Authorisers

Ross Tucker - Acting General Manager, Financial Strategy and Planning

Matthew Walker - Acting Group Chief Financial Officer

Stephen Town - Chief Executive