Agenda of Waiheke Local Board

Waiheke Local Board

10 April 2014

Waiheke Artworks Precinct Drainage Report

File No.: CP2014/01643

Purpose

1. This report seeks the Waiheke Local board’s approval to reallocate capital expenditure from an existing roofing upgrade project to drainage improvements at the Artworks site.

Executive Summary

2. A number of drainage issues have been identified at the Artworks site as a result of excavation work in the courtyard during the library redevelopment.

3. In June 2013, the Waiheke Local Board approved $15,206 capex from the Arts and Culture 2013/2014 Art Facilities renewals budget to upgrade the Artworks Theatre roof.

4. Following this resolution, Property have carried out some roofing upgrade work utilising the Property maintenance budget and the roof upgrade project is no longer a priority.

5. Council staff are now recommending the $15,206 capex budget previously approved for roofing upgrades be reallocated to drainage work plus an additional amount of $3,138. The total cost of the drainage improvement work is $19,500 capex.

6. Due to phasing of the library courtyard construction, decision on reallocation is required urgently.

Recommendations

That the Waiheke Local Board:

a) rescinds the resolution number WHK/2013/186 (i) from the June 2013 meeting for the $15,206 capex Art Facilities renewal budget to be allocated to the Artworks roof upgrade:

“i) Approves the proposed Artworks roof upgrade (at an estimated cost of $18,125 capex), subject to the budget shortfall of $2,919, being considered under the
Property capex work programme.”

b) approves $19,500 for the drainage project at Artworks to be funded from the $16,362 (increased due to inflation) from the 2013/2014 Art Facilities capex renewal budget and the remaining $3,138 from the Library Building capex renewal budget.

Discussion

7. In June 2013, the Waiheke Local board approved $15,206 capex from the Arts and Culture 2013/2014 Art Facilities renewal budget to upgrade the Artworks Theatre roof, as follows:

“i) Approves the proposed Artworks roof upgrade(at an estimated cost of $18,125 capex), subject to the budget shortfall of $2,919, being considered under the Property capex work programme.”

8. Following this resolution, a number of roofing upgrade works have been carried out on the Artworks Theatre from the Property maintenance budget. The works completed to date have significantly reduced the priority of immediate attention to the roof. The following remedial works have been done:

· Replacing flashings in a number of areas

· Replacing insulation around HVAC units pipe work

· Extending eves in some areas

· Repairing a number of leaks in the roof iron

9. Property will continue to repair leaks in the roof iron as and when identified via the maintenance programme.

10. There have been a number of drainage issues identified at the Artworks site as a result of excavation work in the courtyard during the library redevelopment. These include issues with rainwater run-off from the theatre flooding the courtyard; inadequate pipe work connections to the septic system and mains cables found to be running alongside drainage pipes.

11. While some of these issues have been addressed through the library construction budget, a number of items are outside the schedule of work and boundaries of the construction site and therefore need addressing as a separate project.

12. The drainage project improvements to be completed are to:

· Supply and install a new 25,000L water tank on a leveled out sand bed;

· Hook up to the existing water system;

· Re-route existing overflow and run a new 150mm overflow and pin to the fence line;

· Excavate a trench underground in the car park and run to storm water sump;

· Run and install approximately 30m of new 150mm PVC line trenched and back fill as per requirements;

· Enlarge septic pipe work from the courtyard to the holding tanks;

· Relocate the mains cable.

13. Council staff are now recommending the $15,206 capex budget (inflated to $16,362) previously approved for roofing upgrades be allocated to Artworks drainage work, plus an additional amount of $3,138. The total cost of the drainage improvement work is $19,500.

14. Due to phasing of library courtyard construction, decision on reallocation of budget sufficient to complete this work is required urgently.

Consideration

Financial and Resourcing Implications

15. It has been confirmed that there are sufficient funds for the Artworks drainage project within the 2013/2014 Art Facilities renewals budget and Library Building renewal budget.

16. The proposed work will greatly reduce the issues of water runoff currently experienced in the Artworks courtyard and reduce the risk of flooding in the theatre. By increasing the septic drainage from 100mm to 150mm and increasing the fall we will increase the efficiency of the plumbing system on site.

Local Board Views

17. The local board is committed to ensuring a level of maintenance which meets the operational needs of Artworks Precinct.

Implementation Issues

18. The work has been scoped and ready to commence once the budget is released.

Attachments

There are no attachments for this report.

Signatories

Authors

Renee Tanner, Arts and Culture Advisor (Central)

Authorisers

Louise Mason - Manager Community Development, Arts and Culture

Judith Webster - Relationship Manager

Waiheke Local Board

10 April 2014

Waiheke Local Board Small Local Improvement Projects (SLIPs) Programme 2013/2014

File No.: CP2014/04234

Purpose

1. This report provides an overview of the Waiheke Local Board 2013/2014 Small Local Improvement Project (SLIP) programme and recommends projects for reallocation, approval and commencement.

Executive Summary

2. The Waiheke Local Board had $449,000 SLIPs capital expenditure and $349,000 SLIPs operational expenditure to allocate in the 2012/2013 financial year. Both of these budgets have been 100% allocated. The Waiheke Island Local Board has projects carried forward from the 2012/2013 financial year. Information regarding these projects is shown in the Waiheke SLIPs programme attachment.

3. The Waiheke Island Local Board has $441,263 SLIPs capital expenditure and $310,029 SLIPs operational funding available to allocate in the 2013/2014 financial year.

4. To date the Waiheke Island Local Board has allocated $419,810.85 or 95% of their capital expenditure budget and $303,774 or 98% of their operational expenditure budget.

5. Approval of the recommendations in this report will allocate $419,810.85 or 95% of the available SLIPs capital expenditure, and through the return of funds, $290,383 or 94% of the available operational expenditure. This will leave$21,452.15 capital expenditure and $19,646 operational expenditure for scoping prioritisation and project approval by the Local Board.

6. Further SLIPs funding reports for 2013/2014 financial year will be put to the board for project approval and implementation.

7. All 2013/2014 projects should have budget allocated to them within the first quarter of the 2013/2014 financial year; to enable commencement and completion between prior to 30th June 2014.

8. Most projects will need six months or more to be successfully delivered within the 2013/2014 financial year. Projects that have budget allocated to them with less then six months remaining within the current financial year, will be at risk of not being completed by 2013/2014 financial year end. As a result the project completion, as per the agreed delivery programme, may be deferred across into the following 2014/2015 financial year for completion.

9. Decisions from the board are being sought for the following :

· Three projects to be cancelled and budgets returned for reallocation,

· 10 projects to be scoped from SLIPs 2013/2014 budgets,

· Four amendments to projects previously approved from SLIPs 2013/2014 budgets,

· Two projects to be approved from SLIPs 2013/2014 budgets.

10. Further information on the above projects are included within the report and attachments.

Recommendation/s

That the Waiheke Local Board:

a) Delegate authority to the spokesperson to provide guidance and advice to the SLIPs team regarding their allocated proposals and delegates authority to the spokesperson and chair of the board, to be exercised together, to make additional funding decisions where a minor variation to a project scope is needed due to unforeseen circumstances.

b) Cancels the following SLIP’s projects and returns the SLIPs 2013/2014 budgets for reallocation:

No	Project description	Capex/ Opex	Budget value
1.	McKenzie Reserve weed control, planting and signage	Opex	$16,869
2.	Robust Oneroa Street Pole Banners	Opex	$7,800
3.	Pamphlet on Water conservation- distribution	Opex	$524

c) Approves the following amendments to projects previously approved from SLIPs 2013/2014 budgets:

No	Project description	Capex/ Opex	Budget value
1.	Accessible Fragrant garden creation & maintenance - Homersham Reserve and Mary Wilson Reserve- recommend removal of Mary Wilson Reserve	Capex	$380
2.	Savings from the New Bus Shelters, Oceanview and Wellington Roads project to be reallocated to the two new Bus landing pads - Wellington Road project.	Capex	$7,000
3.	Pamphlet on Water conservation- format to be updated and WICOSS to oversee design	Opex	$1,324
4.	Rakino Island biosecurity signage	Capex	$5,000

The detail regarding the above projects is attached to this report as the Attachment A- “SLIPS Project Summary for Waiheke Local Board April 2014”.

d) Approves the following projects for scoping from SLIPs 2013/2014 budgets, (noting projects approved for scoping may take 1 to 3 months to scope depending on the complexity of the projects involved):

No	Project Description
1	Onetangi- O’Brian Rd Causeway Bridge
2	Parks furniture, fixings and illegal dumping budget
3	Ostend Causeway, boat club wash down area at hardstand.
4	Rangihoua moth plant, Te Aroha Ave, Ostend Road, Sea View Road weeds removal
5	Sports Club wet land clean up.
6	Parks volunteer kit
7	Sandy and Enclosure Bay- Conservation signage
8	Onetangi Sports Park Mountain biking trails consent
9	Onetangi Sports Park water trough
10	Hooks Land and Miro Road access way boulders
11	Pie Melon Bay corner

The detail regarding the above projects is attached to this report as the Attachment B- “SLIPS Proposal Forms April 2014”.

e) Approves the following SLIPs projects for implementation during 2013/2014 financial year and confirms the Project Spokespersons for each project:

Project description

Capex/ Opex

Spokes-person

Oneroa Shop Seat project for the creation of new public seat in front of Oneroa Fruit and Vegetable Shop

Opex $170

TBC

Tui St bridge- design and consent project for the creation of an access way over a large storm water drain to the eastern section of esplanade reserve at the end of Tui Street, Blackpool.

Opex $22,748

$11,632 Yr 2013/14

$11,116 Yr 2014/15

TBC

The detail regarding the above projects is attached to this report as the Attachment A- “SLIPS Project Summary for Waiheke Local Board April 2014”.

Discussion

11. The Waiheke Local Board had $449,000 SLIPs capital expenditure and $349,000 SLIPs operational expenditure to allocate in the 2012/2013 financial year. Both of these budgets have been 100% allocated. The Waiheke Island Local Board has projects carried forward from the 2012/2013 financial year. Information regarding these projects is shown in the Waiheke SLIPs programme attachment.

12. The Waiheke Island Local Board has approximately $441,263 SLIPs capital funding and $310,029 SLIPs operational funding available to allocate in the 2013/2014 financial year.

Recommendations for the allocation of SLIPs 2013/2014 opex and capex budgets are being sought in this report. The detail regarding these proposals is attached to this report as the, “SLIPS Project Summary for Waiheke Local Board April 2014”.

13. Approval of the recommendations in this report will allocate $419,810.85 or 95% of the available SLIPs capital expenditure, and through the return of funds, $290,383 or 94% of the available operational expenditure. This will leave $21,452.15 capital expenditure and $19,646 operational expenditure for scoping prioritisation and project approval by the Local Board.

14. Further SLIPs funding reports for 2013/2014 financial year will be put to the board for project approval and implementation.

15. All 2013/2014 projects should have budget allocated to them within the first quarter of the 2013/2014 financial year; to enable commencement and completion between prior to 30th June 2014.

16. Decisions from the board are being sought for the following:

17. Projects to be cancelled and SLIPs 2013/2014 budgets returned for reallocation:

· McKenzie Reserve weed control, planting and signage - $16,869 Opex returned.

Parks staff recommend this project is complete as weed control has been completed; planting did not form part of the project and signage cannot be paid for from Operating Expenditure. The Friends of McKenzie Reserve will be encouraged to apply for funding for projects in the 2014-15 financial year.

· Robust Oneroa Street Pole Banners - $7,800 Opex returned.

At the workshop held on 14^th February the Waiheke Local Board indicated to cease this project, this report seeks the board’s confirmation on the direction for this project.

· Pamphlet on Water conservation - $524 Opex returned

Returning distribution funding from this project for reallocation in 2013/2014 financial year.

18. Projects to be scoped from SLIPs 2013/2014 budgets:

The following SLIPs proposal forms have been received during this period, and are tabled for the board’s consideration:

No	Project Description
1	Onetangi- O’Brian Rd Causeway Bridge
2	Parks furniture, fixings and illegal dumping budget
3	Ostend Causeway, boat club wash down area at hardstand.
4	Rangihoua moth plant, Te Aroha Ave, Ostend Road, Sea View Road weeds removal
5	Sports Club wet land clean up.
6	Parks volunteer kit
7	Sandy and Enclosure Bay- Conservation signage
8	Onetangi Sports Park Mountain biking trails consent
9	Onetangi Sports Park water trough
10	Hooks Land and Miro Road access way boulders
11	Pie Melon Bay corner

19. Seeking approval for the following SLIPs projects for implementation during 2013/2014 financial year and confirms the Project Spokespersons for each project:

Project description

Capex/ Opex

Spokes-person

Oneroa Shop Seat project for the creation of new public seat in front of Oneroa Fruit and Vegetable Shop

Opex $170

TBC

Tui St bridge- design and consent project for the creation of an access way over a large storm water drain to the eastern section of esplanade reserve at the end of Tui Street, Blackpool.

Opex $22,748

$11,632 Yr 2013/14

$11,116 Yr 2014/15

TBC

20. Seeking amendment to the following Projects previously approved from SLIPs 2013/2014 budgets:

21. Accessible Fragrant garden creation & maintenance - Homersham Reserve and Mary Wilson Reserve

Waiheke Local Board workshop on 14^th February the board decided to change the scope of this project to exclude works at Mary Wilson Reserve. The detail regarding this proposal is attached to this report as the “SLIPS Project Summary for Waiheke Local Board April 2014”.

22. Funding changes to New Bus Shelters, Oceanview and Wellington Roads project and the 2 New Bus landing pads - Wellington Road project

Feedback from Auckland Transport has indicated further funding is required to complete the two new bus landing pads. To construct two new landing pads on Wellington Rd would cost $16,000. SLIPS requests to use a portion the savings from the New Bus Shelters, Oceanview and Wellington Roads project to top up this project. The detail regarding this proposal is attached to this report as the “SLIPS Project Summary for Waiheke Local Board April 2014”.

23. Changes to Pamphlet on Water conservation project

Change to organisation completing design work on pamphlet and only completing design work in 2013/2014 financial year. Returning distribution funding ($524) for reallocation.

24. Rakino Island biosecurity signage

Recommends to amend scope of project to use savings ($1964) for further treasure island signage at Pakatoa and Noises.

25. Seeking approval for the following SLIPs projects for implementation during the 2013/2014 financial year and confirms the Project Spokespersons for each project:

26. Oneroa Shop Seat project

A project for the creation of new public seat in front of Oneroa Fruit and Vegetable Shop. The detail regarding this proposal is attached to this report as the “SLIPS Project Summary for Waiheke Local Board April 2014”.

27. Tui St bridge- design and consent project

A project for the creation of a access way over a large storm water drain to the eastern section of esplanade reserve at the end of Tui Street, Blackpool . The detail regarding this proposal is attached to this report as the “SLIPS Project Summary for Waiheke Local Board April 2014”.

28. Hooks Lane and Miro Road access way boulders project

A project for the installation of boulders at Hooks Lane and Miro Road to deter these sites being used for vehicular access to the beach. The detail regarding this proposal is attached to this report as the “SLIPS Project Summary for Waiheke Local Board April 2014”.

The detail regarding the above projects is attached to this report as the Attachment A- “SLIPS Project Summary for Waiheke Local Board April 2014”.

Consideration

Local Board Views

29. This report canvasses the views of the Waiheke Local Board.

30. The recommendations contained within this report fall within the Local Board’s allocated authority.

Maori Impact Statement

31. Parks and open spaces contribute significantly to Maori well-being, values, culture and traditions. Where any aspects of the proposed work programme are anticipated to have a significant impact on sites of importance to Tangata Whenua, appropriate consultation will follow.

General

32. Communities are impacted by SLIPs projects. They provide an opportunity for staff and elected representatives to engage with the communities on their specific needs. SLIPs staff will liaise directly with all residents and stakeholders impacted by any SLIPs or Discretionary funded projects to be delivered.

33. Funding for the proposed projects within this report would be obtained from the Waiheke Local Board’s Small Local Improvement Project budget allocation. After allocating budget to all the projects listed in this report and elsewhere, the Waiheke Local Board will still have SLIPs capital and operational funding remaining unallocated. Further reporting as part of the monthly work programme reporting will be used to determine what other projects the board may wish to fund.

34. SLIPs need to comply with all relevant legislation, including the Resource Management Act 1991, the Local Government Act and all Auckland Council policies.

Implementation Issues

35. All 2013/2014 projects should have budget allocated to them within the first quarter of the 2013/2014 financial year; to enable commencement and completion between prior to 30th June 2014.

36. Most projects will need six months or more to be successfully delivered within the 2013/2014 financial year. Projects that have budget allocated to them with less then six months remaining within the current financial year, will be at risk of not being completed by 2013/2014 financial year end. As a result the project completion, as per the agreed delivery programme, may be deferred across into the following 2014/2015 financial year for completion.

37. Longer term projects will result in SLIPs capital funding being carried forward to the 2014/2015 financial year and these projects not being delivered within the 2013/2014 financial year.

38. Budgets for projects funded from 2013/2014 SLIPs operational expenditure must be fully expended within the 2013/2014 financial year.

39. The ability to spend/deliver outcomes is dependent on the availability of experienced staff or consultant project management resource.

Attachments

No.	Title	Page
a View	SLIPs Project Summary April 2014	19
b View	SLIPs Proposal Forms April 2014	27
c View	Project Schedule April 2014	47

Signatories

Authors

Janine Field - SLIPS Project Portfolio Leader

Authorisers

Oliver Kunzendorff - Team Leaser SLIPs

Julie Pickering - Manager Asset Development & Business Support Central

Ian Maxwell - Manager Parks, Sports & Recreation

Judith Webster - Relationship Manager

Waiheke Local Board

10 April 2014

Local board feedback on the Local Boards Funding Policy Review

File No.: CP2014/06311

Purpose

1. This report seeks formal feedback from local boards on the work to date on the Local Boards Funding Policy Review.

Executive Summary

2. Auckland Council is required to adopt a Local Boards Funding Policy. The current policy was developed within a context of retaining and reflecting legacy council service level and funding decisions. After three years, more has been learned and a broader policy discussion can be undertaken.

3. The review seeks to find the most appropriate funding mechanisms for local board expenditure on asset based services such as parks, libraries, recreation and community facilities and non-asset based services (locally driven initiatives). During the course of the review, equity issues for asset based service levels have been raised, which cannot be resolved via the Local Boards Funding Policy. Resolving these issues will have implications that can only be addressed as part of the wider planning and budgeting process. The review recommends retaining the current funding model for asset based services, but considers options for changing to a fairer funding model for locally driven initiatives.

4. The timing for the review proposes public consultation in June 2014 to enable a policy to be adopted to form the basis of local board budgets for inclusion in the draft Long-term Plan 2015-2025. In order to meet that timeframe engagement with local boards needs to take place in March and April 2014. This will enable the council to consider local board views in determining a proposal for consultation with the public.

5. A report has been produced setting out options for the Local Boards Funding Policy and the key issues that need to be resolved. This report, “Local boards funding policy review” is appended as Attachment A to this report, and will form the basis of engagement with local boards and the Governing Body to inform decision making on the policy.

6. On 20 February 2014, the Governing Body agreed the parameters for engagement with local boards on the review of the local boards funding policy. These parameters include:

· no changes being made to the split between regional and local activities or to decision making responsibility for setting service levels for local activities;

· time frame for the review;

· structure of the policy that is to be considered;

· Governing Body, via operational groups, will work on equity issues in regard to asset based service levels as part of long-term plan process;

· options for a formula based funding allocation;

· parameters for the use of local rates; and

· undertaking a review of the council rates remission and postponement legacy schemes that support community and sports related services, and natural, historic or cultural heritage, alongside the review of the Local Boards Funding Policy.

7. Informal engagement with local boards has been undertaken throughout February and March 2014, and formal feedback is now sought from local boards via resolution.

8. Following the engagement phase of the policy, all feedback will be presented to the Local Boards Funding Policy Political Working Party in early May, and subsequently the Governing Body when considering the draft policy for consultation in late May.

Recommendation/s

That the Waiheke Local Board:

a) agrees to consider the policy framework for the Local Boards Funding Policy Review and provide formal feedback on the issues discussed and other associated issues.

Discussion

9. At the 20 February 2014 meeting of the Finance and Performance Committee^{^[1]}, the following resolutions were passed to guide the engagement phase of the Local Boards Funding Policy:

“a) agree with the following parameters for the review of the Local Boards Funding Policy for engagement with local boards based on the attached report “Local boards funding policy review”:

b) note that the review of the Local Boards Funding Policy will not change decision making responsibility for:

i) the split between regional and local activities

ii) the setting of service levels for local activities.

c) note that the proposed model for funding asset based services is the same model that is currently used.

d) note that the Local Boards Funding Policy cannot resolve issues relating to differing asset based service levels and that the issue will be considered as part of the planning process for the long-term plan

e) agree to adopt the policy by August 2014 to enable clarity in funding decision making to provide predictability of funding in the preparation of local board plans and budgets for the draft Long-term Plan 2015-2025. This will require the policy to be publically consulted on in June 2014.

f) agree that the policy improve alignment between funding and expenditure decisions, by having separate funding mechanisms for:

i) asset based services, such as parks and swimming pools, where service levels in each board area are primarily driven by the Governing Body decisions on the number, nature and location of such assets and the budget available for both capital and operational expenditure on these services.

ii) locally driven initiatives, where local boards undertake activities for the benefit of their local communities, and control decisions on services, service levels and costs. (This may include asset related service level improvements and capital investment within limits approved by the Governing Body).

g) agree that the costs of operating and maintaining asset based services (as defined in f) (i)); as well as the consequential operating expenditure (interest and depreciation) associated with governing body investment in local assets; will be funded from general rates, in accordance with asset management plans and the regional budgeting process

h) agree the next stage of the review will consider options for funding locally driven initiatives (as defined in f) (ii)) by either general rates allocated on a formula basis, local rates collected in each board area, or a mix of general rates allocation and local rates

i) agree that options for determining the relationship between the Governing Body and local boards for the use of local rates are:

i) local boards advocate to the Governing Body for local rates and the Governing Body makes the final decision.

ii) local boards make decisions on the use of local rates, within constraints of regional policy determined by the Governing Body, and the Governing Body implements these decisions.

j) agree that the council’s rates remission and postponement legacy schemes that support community and sports related services, and natural, historic or cultural heritage be reviewed alongside the Local Boards Funding Policy to:

i) ensure consistency between local grants schemes and rates relief schemes

ii) develop a regionally consistent rates remission and postponement policy. Consultation on amendments to the policy should be undertaken alongside consultation on the draft Long-term Plan 2015-2025.

k) agree to direct staff to consider service level equity issues for local asset based services as part of the development of the Long-term Plan and Asset Management Plans and engage with local boards on this and report back on a timetable”.

10. A full discussion of the options for, and issues associated with, the development of the Local Boards Funding Policy can be found in the attached report “Local boards funding policy review”.

11. The following discussion summarises the issues related to the setting of parameters for engagement with local boards on the options for the funding policy.

Time Frame

12. The adoption of a Local Boards Funding Policy is likely to have an impact on the allocation of council budgets. It is recommended that the Local Boards Funding Policy be adopted by mid-August 2014. This would enable the council to prepare local budgets that reflect the new funding policy for public consultation in the draft Long-term Plan 2015-2025. Adopting the Local Boards Funding Policy in August will also provide local boards with clarity as to who has decision making authority on the level and source of funding for local activities during the finalisation of budgets for local board plans in September.

13. To meet this timeline, public consultation on the Local Boards Funding Policy would need to be carried out through a special consultative procedure undertaken in June 2014.

Scope: Policy structure

14. The Local Boards Funding Policy sets out how local activities are to be funded (the split between rates and fees and charges) and who should pay where rates are used. Decisions on service levels and how much funding is available are made when budgets are prepared each year. The review of the Local Boards Funding Policy does not set, or seek to change, decision making responsibility for:

· the split between regional and local activities

· the setting of service levels for local activities.

15. Expenditure on local activities can be either capital or operational in nature. Capital expenditure is debt funded, but the ongoing costs associated with this expenditure, such as interest charges, depreciation, staff, consumables and maintenance are operational costs. Local boards allocated capital funding to deliver governing body investment decisions on local assets, are also allocated the consequential operational expenditure associated with that capital expenditure. Operational expenditure is funded from local fees and charges and rates. The rate requirement is therefore gross operational expenditure, less fees, charges and other revenue.

16. The ability to undertake capital investment depends on the ability to service the subsequent operational costs. While the Local Boards Funding Policy focuses on funding of operating expenditure, it captures capital decisions by including the subsequent operating costs.

17. Good public policy links decisions on tax with decisions on expenditure (i.e. service levels). Where possible this review has identified where better alignment can be made between funding decisions and decisions on levels of service. This has resulted in a policy framework that differentiates between:

· asset based services such as those associated with parks, swimming pools and community facilities where the Governing Body makes decisions on the location, nature and number of local assets and matches this with funding

· locally driven initiatives, where local boards undertake activities for the benefit of their local communities, and control decisions on who gets funding and the services and service levels to be delivered.

18. The table following describes the Governing Body’s and local boards’ decision making roles in relation to asset based services and locally driven initiatives.

	Governing body role	Local board role
Asset based services	· Allocates capital funding to local boards in accordance with its decisions on new local assets and major upgrades. · Decides approximate location, budget and scope for these projects · Governing body decisions on investment will be guided by regional strategies, which should identify funding priorities based on the need to address service gaps and growth	· Engaged and provide feedback on governing body decisions · Engaged and provide feedback on regional strategies · Decide precise location of new assets · Agrees design of project within scope set by the Governing Body. Can propose to fund increases to project scope as locally driven initiatives · Oversees delivery of project
Asset based services	· Allocates operational expenditure to enable local boards to operate and maintain their local assets in accordance with the asset management plans · Approves asset management plans	· Engaged in development of asset management plans · Operate and maintain local assets in accordance with the asset management plans · Can fund asset related service level improvements as locally driven initiatives
Locally driven initiatives	Approve or reject locally driven projects that exceed governing body set limits on local board capital investment	· Can undertake capital projects within limits set by the Governing Body · May undertake capital projects over limits set by the Governing Body with approval from the Governing Body
Locally driven initiatives		· Decide services and service levels to be provided for community and allocates operating budgets accordingly · Oversee delivery of local services · Can fund asset related service level improvements

19. The review proposes that the existing model for funding asset based services be retained as there is no merit in alternative options for funding these. Under this model asset based services will continue to be funded from general rates. As the distribution of asset based service costs between boards does not align with factors such as local board population size, then funding on this basis will not ensure that local boards can maintain their asset base. There is also:

· a poor relationship between the user catchment for many asset based services and local board populations

· using local rates to fund asset based services would be inequitable, and for some boards unsustainable.

20. Under this funding model, the Governing Body determines how much funding is available to fund agreed service level standards. The Governing Body also has the ability to set regional policies on fees and user charges such as free entry to swimming pools for under 17’s. Local boards undertake an advocacy role in changing agreed service levels and will be engaged in the development of the regional strategies on asset based services that will guide governing body decisions on future investment in assets.

21. Local boards also have decision making on how asset based services are delivered and operated in their board area. They may make decisions on the level of fees and charges within any regional policy set by the Governing Body. In doing so they receive the benefit of increased revenue or fund any shortfall from other funding sources.

22. During the course of the review, equity issues for asset based service levels have been raised which cannot be resolved via the Local Boards Funding Policy. Resolving these issues will have implications that can only be addressed as part of the wider planning and budgeting process and will be considered when developing the long-term plan. As part of this process, local boards will be engaged in the development of asset management plans (AMPs) that will determine service levels and capital programmes for asset based services. Engagement with local boards on the AMPs is currently planned to begin March 2014.

23. Under the current funding model, funding for locally driven initiatives reflects decisions on service levels made by former councils. The review has found that equity in funding for locally driven initiatives between local boards can be improved in one of three ways. These are by using:

· general rates allocated to local boards based on factors such as local board population size, possibly adjusted for factors such as deprivation and remoteness

· local rates collected within each board area

· a combination of general rates allocation and local rates.

24. Under a general rate allocation model the amount of locally driven initiative funding available to each local board is determined by the Governing Body. This is affected by decisions made by the Governing Body on the total level of locally driven initiatives funding available each year and the formula used to allocate this to each local board.

25. A general rate allocation model will see a redistribution of funding between local boards; some will receive more funding while others will receive less. A local board that receives less funding will then have the option to reduce expenditure or to seek an increase in revenue from fees and charges or from local rates.

26. Under a local rate model, funding for locally driven initiatives is provided entirely from a local rate. The level of funding required from the local rate is determined by the decisions on local fees, charges, services and service levels made by the local board. The local rate will show as a separate line item on the rates invoice.

27. A combined model will part fund locally driven initiatives via a general rate allocation with the remainder of the funding provided by a local rate.

28. The proposed Local Boards Funding Policy structure for funding operational expenditure is as follows:

Funding for asset based services

The cost of operating and maintaining asset based services is funded from general rates, and fees and charges revenue associated with individual assets. Funding is allocated to local boards in accordance with asset management plans and the regional budgeting process.

Funding for locally driven initiatives

Locally driven initiatives will be funded from local fees and charges associated with these activities, and from rates funding. There are three options for rates funding locally driven

initiatives:

· general rates allocated to local boards based on factors such as local board population size, possibly adjusted for factors such as deprivation and remoteness

· local rates collected within each board area

· a combination of general rates allocation and local rates.

29. The above structure for the funding policy was agreed by the Governing Body for engagement with local boards. The focus for engagement is on how to best fund the locally driven initiatives component of the policy.

Scope: how local rates are used

30. The use of local rates is an option under any funding model. The review of the local board funding policy provides the opportunity to have greater clarity in the roles that the Governing Body and local boards play in setting local rates. This is particularly relevant where funding decisions are aligned with decisions on levels of service. Legislation constrains this process in that only the Governing Body can set a rate. There are two options for determining the relationship between the Governing Body and local boards, these are:

· local boards advocate to the Governing Body for new local rates or changes to those set by the Governing Body, and the Governing Body makes the final decision. This is a similar process that is currently used for funding of local assets.

· local boards make decisions on the use of new local rates or changes to those set by the Governing Body, within constraints of regional policy determined by the Governing Body, and the Governing Body implements these decisions. This is a similar process that is currently used for local fees and charges.

31. The Local Boards Funding Policy is the appropriate place to set this relationship. The Governing Body agreed the above as relationship options for engagement with local boards.

Policy implementation: Capital expenditure

32. Local boards currently have budgets for capital expenditure from three sources:

· governing body investment decisions on local assets

· legacy capital projects inherited from the previous councils

· an allocation of capital funding for boards to use at their discretion, beginning in the 2012/2013 year.

33. Governing body provided capital funds for investment in local assets are not discretionary for local boards. While each board has decision making on how specified projects are implemented within their area, projects must be delivered within the scope agreed by the Governing Body.

34.The review recommends that the Local Boards Funding Policy only allocates operational expenditure to local boards, and does not allocate capital expenditure. Local boards can still undertake capital projects within the limits set by the Governing Body, so long as they can fund the consequential operating expenditure (including depreciation and interest costs) from their operational budgets. Local boards would need to fund this expenditure either by reprioritising their existing budgets (through efficiencies or reduced service levels), or increasing their revenue from rates or fees and charges. This would see local boards funding capital investment in the same way as the Governing Body does.

35. The review recommends that the few remaining significant legacy capital projects be treated the same as governing body investment decisions. These funds will be considered nondiscretionary, on the basis that it was a governing body decision that these projects continue rather than be reviewed against regional priorities for investment. Consequential operating expenditure associated with these projects will be part of asset based service funding and will not impact on local board budgets.

36. The consequential operating expenditure associated with any remaining discretionary capital funds will be treated as funding for locally driven initiatives. This funding will therefore be included in any reallocation of funding for locally driven initiatives.

Scope: Locally driven initiatives - general rate allocation formula options

37. If the Governing Body determines the total level of funding to be raised through a general rate for locally driven initiatives, some form of allocation method or formula is required. The Strategy and Finance committee agreed at its May 2013 meeting that the following attributes of local boards be considered in the development of the funding policy:

· population;

· deprivation;

· factors related to rural/geographic isolation; and

· rates collected.

38. It is recommended that the general rate funding allocation formula be restricted to factors related to population, deprivation and rural/geographic isolation only.

39. Rates collected should not be used as a factor for allocating general rates funding. This is because general rates have an element of both tax and payment for services received. The distribution of rates across groups of ratepayers was a consideration in the development of the rating policy.

40. If funding local boards based on the level of rates collected in the local board area is desired, then local rates should be used. This would make explicit the link between and rates paid and services received, with each board area paying a local rate for the services undertaken by their board. It also directly links a local board’s decision making on service levels with decisions on the rate revenue required to be collected from their local community.

Scope: Transition

41. Under the proposed policy, locally driven initiatives can be primarily funded either through local rates, or by general rates allocated to boards based on factors such as population, or a mixture of the two.

42. A general rate allocation formula will result in significant change in the level of funding for some local boards. As such, the adoption of some form of transition process may be appropriate. The review process will present options for transitioning change as a result of the funding policy over three years, to align with the Long-term plan planning cycle.

43. The level of change associated with the adoption of local rates for funding locally driven initiatives is smaller. Local boards would also have the opportunity to adjust their local rates revenue requirement by adjusting their service levels. A transition process is unlikely to be of value in this case. However if a mixed funding model is adopted, using both general rates allocation and local rates, there may still be a need to transition the allocated portion of funding. Options for managing this change will be presented.

44. It is noted that Great Barrier Island local board will experience high levels of change in funding regardless of what funding model is adopted. Options for treating this board as a special case for funding will be presented by the review.

Policy implementation: Local fees and charges

45. Local boards have the right to set local fees and charges under the allocation of decision making. Under the proposed Local Boards Funding Policy framework, it is recommended that local boards will retain the benefit/bear the cost of any change in fees as a result of their decision making.

46. Local board decisions on fees and charges related to asset based services needs to be balanced against revenue expectations for those services. These revenue expectations inform the requirement for general rate funding for asset based services in the asset management plans. In this case, it is proposed that operating groups will advise boards on the expected revenue targets for their asset based services starting from the status quo. Local boards can adjust fees above or below the recommended target, and will then retain the benefit/bear the cost of any resulting change in expected revenue for the service.

47. In setting fees and charges, there is the risk that actual revenue will vary from expected revenue. If the revenue relates to an asset based service, the operating group will absorb any revenue variance, with any shortfall made up from the groups operating budget. The variance will then be used to inform revenue targets for the service in the following year.

48. The local board will bear the cost or retain the benefit of any variance in revenue related to locally driven initiatives.

Policy implementation: Rates remission and grants schemes

49. The council inherited from the former councils a number of mechanisms that support community and sports related services, and natural, historic or cultural heritage. These included the direct provision of services by the council, grants to third party organisations, and rates remission and postponement schemes.

50. In general the provision of these services and grant schemes have been classed as local activities, and continue to operate in those local board areas from which they originated. The rates relief schemes are part of the council’s rates remission and postponement policy, which is managed regionally, but continue to be available to qualifying properties within those former council areas that originally offered the schemes.

51. As a result of the council retaining these legacy services and schemes, local board areas are providing similar community services using varying delivery models:

· some boards have services, such as community facilities, provided directly by the council

· other boards have grants schemes directly controlled by the boards that are used to fund third parties to provide similar types of services, including the provision of community facilities; as well as to provide support to local community groups and other organisations

· in some board areas, community groups and other organisations have access to rates remission or postponement schemes that are not controlled by the local board in terms of eligibility criteria and approval.

52. The Local Boards Funding Policy has already considered the issue of the use locally controlled grants, compared to where services are being delivered by the council. It is proposed that under the policy, grants that are used to fund local facilities that in other areas are provided by the council, should be funded on the same basis as other asset based services. Grants that are used to fund more discretionary activities, such as one off grants to community groups, will be treated as locally driven initiatives, and be included in the pool of funding for these activities.

53. The Review of Community Assistance has now identified all sources of community funding assistance provided by the council, by local board area. This enables a review of the council’s rates remission and postponement schemes to be undertaken, to develop an approach to supporting community and other organisations that is consistent across the region.

54. The council’s rates remission and postponement policy should be regionally consistent. However most of the rates relief granted under the remission and postponement schemes for community and sports related services, and natural, historic or cultural heritage correspond to grants schemes relate to activities that have been treated as a local board responsibility when support is provided as grants. To ensure consistency, options for moving from rates based schemes to locally controlled grants schemes will be considered, though the financial impact of such a move will need to be assessed.

55. The Governing Body has agreed that the Auckland Council rates remission and postponement policy be reviewed alongside the development of the Local Boards Funding Policy to ensure consistency between local grants schemes and rates relief schemes, and to develop a regionally consistent rates remission and postponement policy.

56. Amendments to the rates remission and postponement policy will be publically consulted on alongside consultation on the Long-term Plan 2015-2025.

Engagement

57. Council staff will be undertaking engagement with local boards on the Local Boards Funding Policy through March and April 2014. The attached report “Local boards funding policy review” will form the basis for engagement on the policy options.

Consideration

Local Board Views

58. This report has been considered by and includes feedback from the Local Boards Funding Policy Political Working Party (LBFP PWP).

59. The purpose of the working party is to provide a joint forum of the Governing Body and local boards to provide guidance and direction with respect to the development of the local board funding policy. This includes development of comprehensive and robust options for the funding of local activities within the Local Boards Funding Policy.

60. This report seeks formal feedback from local boards to be considered by the LBFP PWP in early May and will form part if the consideration by the Governing Body when it adopts the draft policy for consultation in late May.

Maori Impact Statement

61. There are two ways in which Maori could be impacted by the options discussed in this report, these are:

· under a general rate allocation model the level of locally driven initiative funding available to a local board may change

· under a local rate funding model the level of rates paid may change.

62. Maori population is not the same across all local boards. How this will impact on Maori will depend on changes to funding available to local boards and how local boards respond to these changes. This may result in more or less funding being available or lower or higher rates being charged. The impacts by local board will be explored more at the next stage when the draft policy is being considered for consultation.

63. Within a general rate allocation model the choice of attributes may also have an impact on Maori. Some attributes that can be used in the funding formula, for example deprivation, have a greater alignment with the population distribution of Maori. A funding formula that had greater emphasis on these attributes will provide more funding to local boards with higher Maori populations. How this would impact on Maori would depend on the local boards choose to use this funding.

64. The review of the Local Boards Funding Policy will not change the Maori freehold land rates remission and postponement policy.

Implementation Issues

65. There are no implementation issues associated with recommendations in this report.

Attachments

No.	Title	Page
a View	Local Boards Funding Policy Review report	65
b View	Guidelines for local board feedback	113

Signatories

Authors

Aaron Matich - Principal Advisor Modelling

Andrew Duncan - Manager Financial Policy

Authorisers

Judith Webster - Relationship Manager

Waiheke Local Board

10 April 2014

Fees and charges for the hire of community venues, centres and arts facilities

File No.: CP2014/05890

Purpose

1. Local boards are required to set fees for the hire of local council-managed community venues, centres and arts facilities. The fee schedule will be presented as part of the 2014/2015 Local Board Agreement.

2. This report seeks to inform the Waiheke Local Board of administrative changes to the fees and charges framework.

3. It also seeks the Waiheke Local Board’s confirmation of its priority activity types which will be eligible for a maximum discount (i.e. lowest fees per hour).

Executive Summary

4. Local boards have the allocation of setting hire fees for local facilities, to support delivery of services, projects, events and activities for the wider community’s benefit.

5. A project has been under way to develop a more consistent pricing structure for hire of council-managed community venues, centres and houses and arts facilities. Excluded from scope are facilities managed by committees or third parties, and bookable spaces in parks, sport and recreation facilities, or in libraries.

6. Local boards have been engaged in this project through a series of workshops, providing feedback to inform a new fee structure for the hire of local community facilities, with the following purpose:

“To ensure people can access safe and affordable spaces to pursue their interests.”

7. The project has resulted in three main changes:

a. administrative changes to standardise terminology and charge fees on an hourly basis.

b. the Waiheke Local Board can now select activity types to receive discounts to reflect your local board Plan priorities

c. proposed adjustments to the hire fees, to improve consistency across the portfolio of facilities within each local board area, and in similar facilities in adjoining boards.

8. The fees and charges schedule will be presented for adoption as part of the 2014/2015 Waiheke Local Board Agreement.

Recommendations

That the Waiheke Local Board:

a) Confirms the activity types eligible for priority discounts for hire of your local council-run facilities as per attachment A

b) Notes the administrative changes to facilitate implementation.

Discussion

Background

9. Local boards are allocated the setting of fees and discounts for hire of their local council-run community arts venues, halls, centres and houses. This supports delivery of services, projects, events and activities for the wider community’s benefit.

10. Historical variations in hire fees, terminology and procedures across the Auckland region led local boards in 2012 to request improvements to the customer experience for hirers of local community facilities, and to improve the transparency and quality of information and advice to guide local boards when you set and vary hire fees.

Local Board Engagement

11. At workshops during 2013 and 2014, local boards with facilities in scope had a number of opportunities to engage with the project team and to express their preferred approaches to the hire of local facilities. This report has been informed by the feedback received, and has led to a new hire fee framework and fee structure for the 2014-15 year.

12. Operational considerations have meant that not all views expressed can be incorporated during 2014-2015. If you wish to consider more substantial changes to hire fees and charges in future years to ensure alignment across your portfolio, the Long Term Plan process offers an opportunity to consult local communities.

Changes to the Hire Fees and Charges Framework

13. The resulting new hire fee framework takes into account the size, condition and quality of each bookable space, levels of staffing, amenities available, and current patterns of utilisation of the spaces. Some adjustments have been proposed to fees for comparable facilities within each local board area or in adjoining boards.

14. The proposed fee schedule will be presented as part of the 2014/2015 Waiheke Local Board Agreement. While the proposed fee schedules are based on modelling within existing budget parameters, variances may arise due to changing demand and utilisation of facilities. The proposed changes are intended to be budget neutral for each local board, and in most instances, are considered minor in comparison with value for money.

Proposed Administrative Changes

15. In 2014 at a further series of workshops, local boards were informed of operational changes, including standardised fee-naming, and principles for applying discounts:

i) all bookings are treated on a first-come first-served basis

ii) discounts are given for regular bookings and for off-peak times

iii) all hire fees will be charged on a per hour basis, using six simple naming conventions, as in Table 1.

Table 1: Fee Naming Conventions

Naming Convention	Fee Comparisons
Standard	Full rate, no discounts
Standard Off Peak	Full rate, less a discount for time of day or week
Regular	Discount off standard rate for 10 or more bookings per year
Regular Off Peak	Discount off standard rate for 10 or more bookings per year, and a further discount for time of day / week
Local Board Priority Activities	Maximum discount off standard rate
Local Board Priority Off Peak	Maximum discount off standard rate, and a further discount for time of day / week

Consideration of Waiheke Local Board Priorities

16. In line with 2014/2015 Local Board Agreement priorities, the local board is now asked to confirm your Local Board Priority Activities, i.e. those activity types you wish to be eligible for a maximum discount.

Consideration

Local Board Views

17. This report reflects the engagement with local boards

Maori Impact Statement

18. This will affect or benefit Māori communities in the same way it would any other community user in the local board area. No specific need for consultation with Māori was identified for the purposes of this report.

General

19. This report does not trigger the significance policy.

Implementation Issues

20. The new fee framework will be implemented from 1 July 2014. No particular implementation issues are anticipated. It is expected that the clarity and simplicity of the approach will enable more effective promotion of the facilities in the future.

Attachments

No.	Title	Page
a View	Principles for bookings, fees and discounts for Waiheke Local Board	119

Signatories

Authors

Kevin Marriott - Manager Community Facilities

Authorisers

Louise Mason - Manager Community Development, Arts and Culture

Judith Webster - Relationship Manager

Waiheke Local Board

10 April 2014

Draft Annual Plan 2014/2015 submissions analysis and responses to information requests

File No.: CP2014/06033

Purpose

1. The purpose of this report is to provide analysis of the annual plan submissions from the Waiheke Local Board area, and further information to support the board in its decision-making.

Executive Summary

2. The Waiheke Local Hearings Panel heard submissions on the draft Annual Plan 2014/2015, including the draft Local Board Agreement 2014/2015 on Thursday, 20 March 2014.

3. Local boards need to consider any amendments to Local Board Agreements 2014/2015, advocacy areas and any feedback on regional proposals prior to discussions with the Governing Body on 29 and 30 April, and 1 May 2014.

4. This report contains analysis of the submissions from the Waiheke Local Board area, including local and regional submissions.

5. Subject matter expert responses to requests for further information from the hearings are attached.

Recommendation/s

That the Waiheke Local Board:

a) Considers any amendments to its draft Local Board Agreement 2014/2015, advocacy areas and any feedback on regional proposals arising from the special consultative procedure for the draft Annual Plan 2014/2015.

Discussion

6. The Local Government Act 2002 requires Auckland Council to undertake a special consultative procedure (SCP) as part of the development of the Annual Plan 2014/2015, including draft Local Board Agreements 2014/2015.

7. The submission period for the draft Annual Plan SCP ran from 23 January to 24 February 2014.

8. In total, the Council received and processed 1,967 submissions of which 253 were received from the Waiheke Local Board area. 29 submitters in the Waiheke Local Board area indicated they wished to be heard.

9. The Waiheke Local Hearings Panel held its hearings on the draft Annual Plan 2014/2015, including the Local Board’s draft Local Board Agreement 2014/2015 on Thursday, 20 March.

Subject matter expert responses to requests for information

10. Following the hearing, the panel had a number of requests for further information. These were sent to the relevant subject matter experts for response. The responses are attached to inform the Local Board’s decision-making (Attachment A).

Local submissions from the Waiheke Local Board area

11. Key themes and issues from the submissions commenting on local issues are included in

Table one. This table shows whether respondents agree, disagree or were unsure about the proposed budget changes in the draft Waiheke Local Board Agreement 2014/2015.

Table one – respondents to Waiheke proposed budget change

Proposed budget change	Support		Do not support		Unsure		No response
Proposed budget change	No.	%	No.	%	No.	%	No.	%
Community swimming pool	179	70.8%	62	24.5%	0	0.0%	12	4.7%
Reallocation – Onetangi Sports Park	123	48.6%	94	37.2%	0	0.0%	36	14.2%
Reallocation – Community facilities	120	47.4%	92	36.4%	1	0.4%	40	15.8%
Reallocation – Boat ramps	109	43.1%	98	38.7%	1	0.4%	45	17.8%

12. Of the submitters who supported the development of a swimming pool, the overwhelming majority supported this project, because they identified a need to support children learning to swim in a safe environment.

13. A number of submitters supported a swimming pool but did not want this to happen at the expense of funding being cut from other Waiheke community facility upgrades.

14. Approximately ten submitters did not want the swimming pool on Ministry of Education (MOE) land as they felt that the pool should be utilised by the whole of the community and that if it was on MOE land it would be monopolised by the schools.

15. Other issues included:

· 18 submitters (including 6 local businesses) specifically expressed that they do not support the local board’s plan to remove advocacy to ensure a high profile for Waiheke and the Hauraki Gulf Islands within the Auckland Visitor Plan;

· A few submitters requested that the Esplanade be closed to vehicles, including one submission at the Annual plan hearing;

· There were mixed views about constructing a boat ramp on the northern side of the island and there were equal numbers for and against. Some thought that a boat ramp would inhibit people being able to swim and others thought it was necessary;

· There were two submitters who felt that the Rugby Club needs to share its premises with the soccer club; and

· The Rugby Club submitted that the Onetangi Sports Pavilion needs a facility upgrade and that funding needs to be allocated to this.

16. Other issues that submitters commented on included:

· There is a need for footpaths on busy road;

· Building consents should be decided by the Local Board;

· The marine environment needs to be a priority;

· Onetangi Beach needs a BBQ and a toilet;

· The cenotaph around the RSA needs a facelift;

· There is a need for slower speed limits on Waiheke;

· There is a need for more pedestrian connections;

· The Community Art Gallery submitted that they are in need of more funding;

· The Artworks Community theatre urged the Board to fund an upgrade of the facility and adequately fund a revitalised arts complex in the old library space;

· A number of submitters opposed the marina at Matiatia;

· The Waiheke Golf Club supported a high profile tourism strategy for Waiheke, and not the low impact tourism strategy suggested by the Local Board;

· A request that the Board advocates more on the Hauraki Marine Spatial Plan and advocate for more marine reserves;

· A request for more projects to promote cycle safety on Waiheke and the use of cycles by tourists;

· A request that vacant facilities on the island are utilised eg Oneroa Bowling Club;

· Planting needs to occur at Wharetana Bay;

· A lack of parking at Matiati; and

· A need for a wetland restoration project.

Regional submissions from the Waiheke Local Board area

17. Feedback on regional proposals:

· Three submitters requested that the speedway remain at Western Springs; and

· Three submitters requested that the Arts Festival remain as a biennial event.

Consideration

Local Board Views

18. The Local Board needs to consider any amendments to its draft Local Board Agreement 2014/2015, advocacy areas and any feedback on regional proposals arising out of the SCP process.

19. A separate report on this agenda will address the requirement to agree a final balanced budget, advocacy areas for 2014/2015, and if required, resolve on feedback on regional proposals.

Maori Impact Statement

20. The draft Local Board Agreement 2014/2015 sets out the local activities that Auckland Council will undertake in the Local Board area over the coming year. These activities are likely to have an impact on Māori and iwi in the local board area. Māori and iwi have had the opportunity to submit on the content of the draft Local Board Agreement as part of the SCP process.

General

Implementation Issues

21. The content of the final Local Board Agreement will set out the local activities to be undertaken by Auckland Council in the Local Board area. Implementation issues will vary depending on the activities undertaken.

Attachments

No.	Title	Page
a View	Responses to requests for information	125

Signatories

Authors

Marion Davies - Senior Adviser - Waitemata

Authorisers

Karen Lyons - Manager Local Board Services

Judith Webster - Relationship Manager

Waiheke Local Board

10 April 2014

Local board decisions for 2014/2015 Annual Plan

File No.: CP2014/06062

Purpose

1. This report provides guidance for local boards on finalising budgets and other decisions required for local board agreements and the Annual Plan 2014/2015.

Executive Summary

2. This report provides information to support local boards to make decisions required in order to finalise local board content for the Annual Plan 2014/2015.

3. The draft Annual Plan 2014/2015 was released for public consultation in January, with local board hearings held in March as part of the special consultative procedure. Following consultation, local boards have considered all new and updated information now available in relation to budgets, advocacy areas and regional proposals for 2014/2015.

4. Local boards are now asked to:

i) agree a final balanced budget for 2014/2015 and outer years;

ii) agree an updated set of advocacy areas to the Governing Body and CCOs for inclusion in the Annual Plan 2014/2015;

iii) agree a local fees and charges schedule for 2014/2015; and

iv) resolve on any regional proposals being considered as part of the annual plan.

Recommendation/s

That the Waiheke Local Board:

a) agrees a balanced budget for 2014/2015 and outer years for the Annual Plan 2014/2015 that reflect the allocation of decision-making

b) confirms an updated list of advocacy areas for the Governing Body and council-controlled organisations, for inclusion in the Annual Plan 2014/2015

c) agrees a local fees and charges schedule for 2014/2015

d) resolves on any feedback on regional proposals being considered as part of the annual plan process for Governing Body consideration

e) Notes:

i) local board budgets for 2014/2015 and outer years are required to balance in every year

ii) if budgets do not balance in every year, the Budget Committee will respond to any advice provided by the local board about how to balance its budget if required. If this has not occurred, budgets will be balanced by proportionately reducing the budgets for the local boards discretionary projects to address the overspend

iii) local board budgets will be updated in May to reflect local board prioritisation decisions, any final decisions made by the Budget Committee on 8 May, and updated central cost allocations. Updated financial statements for 2014/2015 will be provided to local boards in time for local board agreement adoption meetings in June 2014.

Discussion

5. The draft Annual Plan 2014/2015 was released for public consultation in January, with local board hearings held in March as part of the special consultative procedure. Following consultation, each local board has reviewed its 2014/2015 and outer year budgets and considered what, if any, reprioritisation is required in order to finalise budgets for the annual plan.

6. This report provides information on:

· key budget refresh movements to local board budgets

· local board decisions required in April to support the annual plan process

· next steps to finalise local board budgets and agreements for the 2014/2015 Annual Plan.

7. Local boards are now required to make decisions following the consultation and reprioritisation phases to enable local board content to be updated and finalised for the Annual Plan 2014/2015. Local boards are asked to:

i) agree a final balanced budget for 2014/2015 and outer years

ii) agree an updated set of advocacy areas to the Governing Body and CCOs for inclusion in the Annual Plan 2014/2015

iii) agree a local fees and charges schedule for 2014/2015

iv) resolve on any other feedback relating to regional proposals being considered as part of the annual plan.

Budget Refresh

8. A budget refresh was undertaken in February to reflect the most accurate budget based on the latest available information and any changes in the business. Movements are based on factors such as performance year to date and forecast changes in the operating environment.

9. A summary of key areas of impact on local board budgets is set out in Attachment A. There is no impact on service levels as a result of budget refresh movements. Variance analysis for this local board is provided in Attachment B.

Next steps to finalise local board agreements

10. Discussions between the Budget Committee and local boards will occur between 29 April and 1 May.

11. Reports will be prepared for the Budget Committee meeting on 8 May providing an update on local board budgets, advocacy and other feedback and seeking any further decisions required to finalise the Annual Plan 2014/2015. At this meeting, the Committee will formally consider local board feedback and advocacy.

12. Between 9 and 30 May, local board agreements will be updated and financial statements prepared. Financial statements will reflect budget prioritisation decisions made by local boards, any further decisions made by the Budget Committee and include central cost allocations, such as depreciation, interest and staff costs.

13. Local boards will meet to adopt their local board agreements between 9 June and 19 June, with the Governing Body meeting to adopt the final annual plan, including the 21 local board agreements, on 26 June.

Consideration

Local Board Views

14. This report sets out the decisions local boards need to make in order to finalise budgets and agree advocacy areas for the Annual Plan 2014/2015. Local boards may also provide feedback on region-wide policies and proposals being considered as part of the annual plan.

Maori Impact Statement

15. Many local board decisions are of importance to and impact on Maori. The annual plan and local board agreements are important tools that enable and can demonstrate the council’s responsiveness to Maori. The local board agreement is based on the local board plan and the Long-term Plan 2012-2022 which have both been developed through engagement with the community, including Maori.

16. There is a need to continue to build relationships between local boards and iwi, and where relevant the wider Māori community. Ongoing conversations will assist local boards and Māori to understand each other’s priorities and issues. This in turn can influence and encourage Māori participation in council’s decision-making processes. In particular, the 2014 Local Board Plans and the draft Long-term Plan 2015-2025 will influence relevant annual plans and local board agreements.

General

Implementation Issues

17. Local boards’ financial statements reflect the full cost of undertaking local activities within each board’s area. However, some of these costs are not directly under the control of local boards (e.g. staff costs, corporate overhead, interest and depreciation) and are therefore subject to change outside of the local board’s prioritisation process.

18. These central costs will alter as final budget decisions are made by the Budget Committee on 8 May. As these central costs change, the total funding for each local board will change by the same amount. These changes will have no impact on a local board’s level of discretionary funding.

Attachments

No.	Title	Page
a View	Budget refresh – Summary of key movements	133
b View	Budget refresh tables (capex and opex)	135
c View	Fees & Charges Schedule	137
d View	Current list of Advocacy Areas	143