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Resolution number OR/2014/20
MOVED
by Chairperson DEC Simpson, seconded by Deputy Chairperson CRJ Davis:
That the Orākei
Local Board:
a)
receives the Financial Policies Issues
for Long-term Plan 2015/25 report.
b)
notes that the board’s ability to
comment on the proposed financial policies for the Long-Term Plan is impacted
by the lack of information available regarding the effects of the new capital
valuations from 2015/16 onwards and the lack of impact analysis at the local
board level.
c)
notes that Orakei Local Board
ratepayers contributed over $115 million in rates in 2013/14 and, while there
was some regional investment, only received $16.7 million Operational
Expenditure and $10.4 million Capital Expenditure much of which the board
cannot influence.
d)
notes that inflation in New Zealand in
2015 is expected to be below 1.5 per cent
e)
notes that many ratepayers in the
Orakei Local Board area are on fixed incomes limiting their ability to cope
with higher rates increases.
f)
supports keeping rates increases to a
minimal level, but opposes the projected “average” rates increase of 2.5 per cent
as it is misleading and does not reflect the fact that a significant majority
of Orakei ratepayers have experienced cumulative rate increases of over 20
per cent since the formation of Auckland Council.
g)
notes the averages rates increase in
2013/14 for Orakei ratepayers was actually 5.9 per cent which is more than
double the Auckland Council average.
h)
notes that 47 per cent of Orakei
ratepayers paid the full 10 per cent rates cap per annum for each of the last
three years.
i)
considers that if a rates increase is
justified, it should only be implemented with an increase in the Uniform
Annual General Charge.
j)
supports a rating policy that is more
strongly aligned to levels of service and less to property values, noting
that increasing the level of the Uniform Annual General Charge would also
lessen the impact of increasing property values on rates.
k)
requests officers to provide more
information about the base services that the Uniform Annual General Charge is
meant to cover, and average cost per rateable unit for these services.
l)
supports the Uniform Annual General
Charge being set at a level that recovers the average cost per rateable unit
for those services.
m) supports the policy of gradual reduction in the business rate
differential in support of economic growth and employment but recommends
implementing the reduction over a longer period than 10 years to lessen the
impacts on residential rates.
n)
supports extending the policy of a 10
per cent cap to keep rate increases tenable, while the transition to the new
rating system continues.
o)
notes that the Orakei Local Board has a
high number of superannuitants and supports rates postponement to
superannuitants in principle, on the condition that the postponement is based
on levels of income and ability to pay.
p)
notes that rural communities are best
placed to comment on the rural rate differential.
q)
supports a review of community,
sporting and heritage remission and postponement policies in an effort to
promote transparency and fairness across Auckland.
r)
notes that if legacy community,
sporting and heritage remission and postponement policies are replaced by
grants, the funding associated with the legacy policies should be allocated
to local boards so that the local boards’ discretionary budgets are not
impacted.
s)
requests that the Governing Body
advocate to Central Government to ensure that the rates exemption for
government-owned land with a commercial element (such as universities) is
transitioned to a rateable option.
t)
supports the policy of moving towards
fully funding depreciation however, requests that this move be slowed in
order to lessen the impact of this on residential rates, particularly given
plans to cut renewals spending.
u)
supports in principle a standardisation
and simplification of fees and charges in Auckland over time in an effort to
promote transparency and fairness across Auckland.
v)
supports the Mayor’s proposal to sell
non-core assets and non-core operations, and supports the sale of social
housing, to reduce future rates increases, noting that Housing New Zealand or
Community Housing Providers are better placed to own and operate these
assets.
w) supports a review of cemeteries fees to be aligned to land value
and operational costs.
x)
supports a move to begin charging for
regular street trading activities (i.e. not one off or occasional trading)
and favours the option of a significant discount (e.g. 50 per cent) for
street trading licences, reflecting that they do not have access to the full
set of services non-mobile businesses have access to.
y)
supports, in principle, that a
significant proportion (for example 85 per cent) of development contributions
is spent in the local board area where the development takes place, noting
that the discrepancy between timing of revenue received and expenditure
occurring can be alleviated by separate accounting and robust reporting on
and monitoring of financial flows.
CARRIED
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