Minutes of Budget Committee - 21 November 2013

Budget Committee

21 November 2013

1 Apologies

Resolution number BUD/2013/1

MOVED by Chairperson LCM Brown, seconded by Cr CM Casey:

That the Budget Committee:

a) accept the apologies from Crs D Quax for absence and M Lee for absence on Council business and from Cr C Fletcher and Member D Taipari for lateness.

CARRIED

2 Declaration of Interest

There were no declarations of interest.

3 Confirmation of Minutes

There were no minutes to confirm.

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

Secretarial note: The meeting agreed to defer this item until Cr Fletcher was present.

9	Annual Plan 2014/2015 - Overview and performance measures and targets - Replacement Report
	Officers were in attendance to address the Budget Committee regarding this item. A copy of the presentation has been placed on the official copy of these minutes and is available on the Auckland Council website.
	Cr Hulse entered the meeting at 9.44 am. Member DE Taipari entered the meeting at 9.58 am. Cr PA Hulse left the meeting at 10.22 am. Cr PA Hulse returned to the meeting at 10.31 am. Cr AJ Anae left the meeting at 10.36 am. Cr AJ Anae returned to the meeting at 10.45 am.
	Resolution number BUD/2013/2 MOVED by Chairperson LCM Brown, seconded by Cr WB Cashmore: That the Budget Committee receive the report. CARRIED
	That the Budget Committee: a) agree the proposed changes to performance measures set out in Attachment B to the agenda report. b) agree the proposed targets for regional and CCO performance measures (as set out in Attachments C and D to the agenda report). c) note that officer advice has been provided to local boards on performance targets for 2014/2015 and that local boards are considering this advice as part of developing their draft local board agreements.
	Cr Casey moved by way of an amendment, seconded by Cr Clow: That the Budget Committee agree that Aotea Square be removed from the two targets in Attachment D (agenda page 20). LOST
	Secretarial note: The Chairperson incorporated recommendations d) and e) into the substantive motion.
	The Chairperson moved the substantive motion: Resolution number BUD/2013/3 MOVED by Chairperson LCM Brown, seconded by Cr WB Cashmore: That the Budget Committee: a) agree the proposed changes to performance measures set out in Attachment B to the agenda report. b) agree the proposed targets for regional and CCO performance measures (as set out in Attachments C and D to the agenda report). c) note that officer advice has been provided to local boards on performance targets for 2014/2015 and that local boards are considering this advice as part of developing their draft local board agreements. d) include consultation with the Independent Maori Statutory Board on the review of the performance management framework for the Long Term Plan 2015-2025. e) agree that Councillors may subsequently advise officers of other performance measures that they wish to include in the list. CARRIED
	Attachments a Performance measures and targets

11.00 am The meeting adjourned.

11.12 am The meeting reconvened.

Update on Māori priority project areas

Cr WD Walker left the meeting at 11.12 am.

Cr AM Filipaina left the meeting at 11.12 am.

Resolution number BUD/2013/4

MOVED by Member DE Taipari, seconded by Member J Tamihere:

That the Budget Committee:

a) agree that the regular progress and planning updates on the Māori project priority areas be included in future quarterly updates on Māori Outcomes to the Finance and Performance Committee, noting that the Independent Māori Statutory Board would prefer this reporting to go to the Budget Committee.

b) agree that officers report to the Budget Committee by 27 March 2014 on the milestones and funding to progress the 2013/2014 Maori priority projects in 2014/2015.

CARRIED

Draft Annual Plan 2014/2015 - Mayoral proposal

A copy of “Attachment 2 – Proposed changes to building control and property information fees for 2014/2015” replacing pages 88 and 89 in the agenda was tabled and has been placed on the official copy of the minutes and is available on the Auckland Council website.

Cr AM Filipaina returned to the meeting at 11.19 am.

Cr WD Walker returned to the meeting at 11.24 am.

Cr J Watson left the meeting at 11.30 am.

Cr WD Walker left the meeting at 11.30 am.

Cr WD Walker returned to the meeting at 11.37 am.

Cr J Watson returned to the meeting at 11.37 am.

MOVED by Chairperson LCM Brown, seconded by Cr PA Hulse:

That the Budget Committee:

a) approve the updated baseline budget including efficiency savings and additional costs and representing a 2.3% rate increase.

b) include $1.6 million of operating expenses in the budget for the Tamaki Redevelopment Company subject to further discussions with the company and the Crown.

c) include, for consultation with the community, $1.25 million of operating expenses in the budget for a staged implementation of the Living Wage Policy.

d) approve an ongoing review of the capital expenditure programme of the CCOs to identify cost reductions and deferrals.

e) approve the “licence to occupy” remission scheme continue in the current form.

f) defer changes to the remission and postponement schemes for community sporting and other organisations providing community services including support related to built and natural heritage until after the review of Local Board Funding Policy is complete, and included in the consultation of the Long-term Plan 2015-2025.

g) note that:

i) the estimated rates decrease cap is 3.0% based on an overall rates increase of 2.5% and that this will be updated at the time of adoption of the final Annual Plan.

ii) the discount for early payment of rates is estimated to be 1.1% and that this will be updated at the time of adoption of the final Annual Plan.

h) include the proposed health protection licence fees as set out in the Mayor’s proposal in the draft Annual Plan 2014/2015.

i) note that the health protection licence fees have been removed for fitness centres, swimming pools and other premises no longer covered by the health and hygiene by-law.

j) agree that work commence on reviewing the disparate charges and levels of service in council’s social housing, in consultation with tenants and the seniors panel as part of the development of the Long-term Plan 2015-2025 and that a 5% increase in rental charges in this Annual Plan is included within this consultation.

k) include the proposed building control and property information fees in the draft Annual Plan 2014/2015.

l) include within the Draft Annual Plan and consultation process, consultation on the regional stadia plan.

Secretarial note: Amendments to recommendations c) and j) were incorporated during the debate.

Cr Casey moved by way of amendment to c), seconded by Cr Watson:

That the Budget Committee:

c) include $3.75m for implementation of the Living Wage Policy.

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

For

Cr CM Casey

Cr AM Filipaina

Member DE Taipari

Member J Tamihere

Cr WD Walker

Cr J Watson

Against

Cr AJ Anae

Cr CE Brewer

Chairperson LCM Brown

Cr WB Cashmore

Cr RI Clow

Cr LA Cooper

Cr C Darby

Cr PA Hulse

Cr DA Krum

Cr CM Penrose

Cr SL Stewart

Cr JG Walker

Cr MP Webster

Cr GS Wood

Abstained

The amendment was declared lost by 6 votes to 14.

The Chairperson put recommendation c):

That the Budget Committee:

c) include, for consultation with the community, $1.25 million of operating expenses in the budget for a staged implementation of the Living Wage Policy.

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

For

Cr AJ Anae

Chairperson LCM Brown

Cr CM Casey

Cr RI Clow

Cr C Darby

Cr AM Filipaina

Cr PA Hulse

Member DE Taipari

Member J Tamihere

Cr WD Walker

Cr J Watson

Against

Cr CE Brewer

Cr WB Cashmore

Cr LA Cooper

Cr DA Krum

Cr CM Penrose

Cr SL Stewart

Cr JG Walker

Cr MP Webster

Cr GS Wood

Abstained

The motion was declared carried by 11 votes to 9.

The Chairperson put the remaining recommendations:

Resolution number BUD/2013/5

MOVED by Chairperson LCM Brown, seconded by Cr PA Hulse:

That the Budget Committee:

a) approve the updated baseline budget including efficiency savings and additional costs and representing a 2.3% rate increase.

b) include $1.6 million of operating expenses in the budget for the Tamaki Redevelopment Company subject to further discussions with the company and the Crown.

d) approve an ongoing review of the capital expenditure programme of the CCOs to identify cost reductions and deferrals.

e) approve the “licence to occupy” remission scheme continue in the current form.

g) note that:

i) the estimated rates decrease cap is 3.0% based on an overall rates increase of 2.5% and that this will be updated at the time of adoption of the final Annual Plan.

ii) the discount for early payment of rates is estimated to be 1.1% and that this will be updated at the time of adoption of the final Annual Plan.

h) include the proposed health protection licence fees as set out in the Mayor’s proposal in the draft Annual Plan 2014/2015.

i) note that the health protection licence fees have been removed for fitness centres, swimming pools and other premises no longer covered by the health and hygiene by-law.

k) include the proposed building control and property information fees in the draft Annual Plan 2014/2015.

l) include within the Draft Annual Plan and consultation process, consultation on the regional stadia plan.

CARRIED

For clarity, the resolutions are as follows:

That the Budget Committee:

a) approve the updated baseline budget including efficiency savings and additional costs and representing a 2.3% rate increase.

b) include $1.6 million of operating expenses in the budget for the Tamaki Redevelopment Company subject to further discussions with the company and the Crown.

c) include, for consultation with the community, $1.25 million of operating expenses in the budget for a staged implementation of the Living Wage Policy.

d) approve an ongoing review of the capital expenditure programme of the CCOs to identify cost reductions and deferrals.

e) approve the “licence to occupy” remission scheme continue in the current form.

g) note that:

i) the estimated rates decrease cap is 3.0% based on an overall rates increase of 2.5% and that this will be updated at the time of adoption of the final Annual Plan.

ii) the discount for early payment of rates is estimated to be 1.1% and that this will be updated at the time of adoption of the final Annual Plan.

h) include the proposed health protection licence fees as set out in the Mayor’s proposal in the draft Annual Plan 2014/2015.

i) note that the health protection licence fees have been removed for fitness centres, swimming pools and other premises no longer covered by the health and hygiene by-law.

k) include the proposed building control and property information fees in the draft Annual Plan 2014/2015.

l) include within the Draft Annual Plan and consultation process, consultation on the regional stadia plan.

Attachments

a Proposed changes to building control and property information fees for 2014/2015

12.40 pm The meeting was adjourned.

1.12 pm The meeting reconvened.

Auckland Arts Festival Annualisation - Annual Plan Consultation

Member DE Taipari retired from the meeting at 1.21 pm.

Resolution number BUD/2013/6

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

That the Budget Committee:

a) note that work is underway to assess the business case for increased council funding to assist the Auckland Arts Festival become an annual event from 2016, and will be reported in May 2014.

b) agree to consult in the draft 2014/2015 Annual Plan, to help assess the level of public support for the provision of additional council funding for annualisation of the Auckland Arts Festival.

CARRIED

Selection of members to the local board funding policy review political working party

Resolution number BUD/2013/7

MOVED by Chairperson LCM Brown, seconded by Cr WB Cashmore:

That the Budget Committee:

a) confirm the continuation of the political working party for the review of the local board funding policy.

b) confirm that the local board representation is maintained at eight members.

c) appoint the following representatives:

i) Councillors Brewer, Cashmore, Clow, Darby, Hulse, Watson and Webster as representatives of the Governing Body in addition to the Mayor as chair of the working party.

ii) Glenn Wilcox as a representative from the Independent Maori Statutory Board.

d) note that the next meeting of the political working party is scheduled to be held on 17 December 2013.

CARRIED

14 Consideration of Extraordinary Items

There was no consideration of extraordinary items.

8. Notices of Motion

8.1

Notice of Motion - Cr Fletcher - Local Boards optional targeted rate for berm maintenance

Secretarial note: Cr Fletcher authorised Cr Krum to move this item under Standing Order 3.11.3.

Cr CE Fletcher entered the meeting at 1.44 pm before the division was called.

Cr Krum moved the Notice of Motion, seconded by Cr Brewer:

That the Budget Committee:

a) request officers to initiate discussions with Local Boards on the possibility of applying an optional targeted rate for berm maintenance in their respective Local Board area, particularly in those areas where this service has not been undertaken with resultant health and safety issues.

b) agree to forward this resolution to the Local Boards for their information.

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

For

Cr AJ Anae

Cr CE Brewer

Cr CE Fletcher

Cr DA Krum

Cr SL Stewart

Cr J Watson

Against

Chairperson LCM Brown

Cr CM Casey

Cr WB Cashmore

Cr RI Clow

Cr LA Cooper

Cr C Darby

Cr AM Filipaina

Cr PA Hulse

Cr CM Penrose

Member J Tamihere

Cr JG Walker

Cr WD Walker

Cr MP Webster

Cr GS Wood

Abstained

The notice of motion was declared lost by 6 votes to 14.

1.47 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:........................................................

Chairperson	Mayor Len Brown, JP
Deputy Chairperson	Cr Penny Webster
Members	Cr Anae Arthur Anae
	Cr Cameron Brewer
	Cr Dr Cathy Casey
	Cr Bill Cashmore
	Cr Ross Clow
	Cr Linda Cooper, JP
	Cr Chris Darby
	Cr Alf Filipaina
	Cr Hon Chris Fletcher, QSO	From 1.44 pm, Item 8.1
	Cr Penny Hulse	From 9.44 am, Item 9
	Cr Denise Krum
	Cr Calum Penrose
	Cr Sharon Stewart, QSM
	Member David Taipari	From 9.58 am, Item 9 until 1.21 pm, Item 12
	Member John Tamihere
	Cr Sir John Walker, KNZM, CBE
	Cr Wayne Walker
	Cr John Watson
	Cr George Wood, CNZM

	Cr Mike Lee	For absence on Council business
	Cr Dick Quax	For absence