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Budget
Committee
05 November
2014
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Long Term Plan
2015-2025 – Estimated cost of co-governance entities
File No.: CP2014/24837
Purpose
1. This
report provides an update on meeting the projected cost of co-governance
entities (which the council is party to) and considers what that means for
draft Long Term Plan budgets.
Executive summary
2. The Mayor’s LTP
proposal identified a commitment to provide a reasonable level of funding /
support to reflect the projected cost of co-governance entities.
3. Council
is currently involved in 5 co-governance entities. These are:-
a) Ngāti
Whātua o Ōrākei Reserves Board (Whenua Rangatira and Pourewa
Creek Reserve)
b) Tūpuna
Maunga o Tāmaki Makaurau Authority (Maunga Authority).
c) Parakai
Recreation Reserves Board
d) Te Motu a
Hiaroa (Puketutu Island) Governance Trust
e) Mutukaroa
Trust Board (Hamlins Hill)
4. An
assessment has been undertaken of the 10 year funding requirements for each of
the co-governance entities, to identify a reasonable level of funding required
to deliver on the commitment identified in the Mayor’s LTP proposal.
5. Council
departments have reviewed their existing budgets and have identified additional
funding requirements. Where possible co-governance entities have been given
the opportunity to participate in this process in order to better reflect their
priorities. Co-governance entities may also make further representations
through the LTP process to achieve greater aspirations than the proposed level
of funding will provide.
6. The
additional funding requirement has been subject to review by the Manager –
Regional and Specialist Parks and where possible further reprioritisation has
been undertaken to avoid any impact on rates.
7. The
additional funding requirement for the Maunga Authority also takes into account
the transfer of the routine management of Maungauika / North Head to Auckland
Council from the Department of Conservation in accordance with the Parks, Sports
and Recreation Committee Resolution PAR/2014/48.
8. Attachment
A summarises the estimated funding requirement over the 10 year LTP period for
the co-governance entities.
9. A
summary of the existing budget, total estimated funding requirement and additional
funding requirements for each of the five co-governance entities is provided in
Table 1 below:-
10. A
total funding requirement of $32.1 million (Net Operational funding) and
$47.5 million (capital projects) reflects the projected cost of the co-governance
entities over the next ten years before adjusting for inflation. We propose to
provide for this through:
· Existing budgets of
$24.5 million (Net Operational funding) and $9.4 million (capital
projects) for the five co-governance entities.
· Recommending that
the Maunga Authority consider applying $2.5 million from the open space
and volcanic cones targeted rate reserve to help fund its activities.
Additional funding of $5.1 million
(Net Operational funding) and $38.1 million (capital projects).
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Recommendation/s
That for the purpose of developing
draft budgets for LTP consultation, the Budget Committee:
a) note that the
total projected cost of the co-governance entities (which the council is
party to) for the next ten years is $32.1 million (Net Operational
funding) and $47.5 million (capital projects) before adjusting for
inflation.
b) note that $24.5
million (Net Operational funding) and $9.4 million (capital
projects) is already identified in existing budgets
c) note that
additional funding of $5.1 million (Net Operational funding) and $38.1
million (capital projects) is required to meet the estimated cost of
co-governance entities over the next ten years, plus adjustments for
inflation.
d) seek agreement
from the Maunga Authority to apply $2.5 million from the open space
and volcanic cones targeted rate reserve to help fund activities over the
first five years of the LTP
e) note that the
additional funding requirement projected for the Maunga Authority also takes
into account the transfer of routine management of Maungauika / North Head to
Auckland Council from the Department of Conservation in accordance with the
Parks, Sports and Recreation Committee Resolution PAR/2014/48.
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Comments
Council’s
funding requirements in relation to co-governance entities
11. The
Mayor’s LTP proposal identified a commitment to provide a reasonable level of
funding to support co-governance entities.
12. As
a result of negotiated outcomes arising from Treaty settlement legislation,
Environment Court mediation and historic Crown negotiations, the council has a
range of responsibilities in relation to co-governance arrangements with mana
whenua.
13. This
includes appointing members to; supporting; administering; and funding existing
and newly established co-governance entities.
Process to estimate funding requirements
14. An
assessment has been undertaken of the 10 year funding requirements for each of
the current co-governance entities that Council is involved in, to identify a
reasonable level of funding required to deliver on the commitment identified in
the Mayor’s LTP proposal.
15. Table
2 below provides an overview of the funding request process that was
followed for each of the five co-governance entities:-
16. Separate
workshops were held with Council Officers and the Ngāti Whātua o
Ōrākei Reserves Board and the Parakai Recreation Reserves Board to
complete Phase 3.
17. The
Tūpuna Maunga o Tāmaki Makaurau Authority (Maunga Authority) will
complete Phase 3 at its meeting on 3 November 2014.
18. The
Te Motu a Hiaroa (Puketutu Island) Trust are yet to hold their first meeting
and Mutukaroa Trust Board were unavailable to meet to complete Phase 3 of the
funding request process.
19. As
part of Phase 4, the funding requests were reviewed by the Manager of Regional
and Specialist Parks who has further rationalised funding, to minimise any
impact on rates.
Estimated funding of co-governance entities
20. Attachment
A summarises the allocation of the indicative 10 year funding requirements for
the co-governance entities taking into account existing budgets.
21. A
summary of the existing budget, total estimated funding requirement and
additional funding requirements for each of the five co-governance entities is
summarised in Table 1 (paragraph 5).
22. More
detail on the five co-governance arrangements that Council is currently
involved with and their indicative funding requirements is provided later in
this report and in Attachments B-F. The five arrangements are:-
i) Ngāti
Whātua o Ōrākei Reserves Board (Attachment B)
ii) Tūpuna
Maunga o Tāmaki Makaurau Authority (Maunga Authority) (Attachment C)
iii) Parakai
Recreation Reserves Board (Attachment D)
iv) Te
Motu a Hiaroa (Puketutu Island) Governance Trust (Attachment E)
v) Mutukaroa
Trust Board (Attachment F)
23. A
total funding envelope of $32,096,765 (Net Operational funding) and $47,469,676
(capital projects) reflects the projected cost of co-governance entities over
the next ten years.
24. The
Financial Plan, Policy and Budgeting team have confirmed the existing of $24,513,900
(Net Operational funding) and $9,357,093 (capital projects) for the five
co-governance entities.
25. An
additional funding requirement of $5,082,865 (Net Operational funding)
and $38,112,583 (capital projects) has been confirmed.
26. Co-governance
entities may also make further representations through the LTP process to
achieve greater aspirations than the proposed level of funding will provide.
Recommended application of targeted rate reserve
27. It
is recommended that the Maunga Authority consider applying $2,500,000 of
the open space and volcanic cones targeted rate reserve (from the former
Auckland City Council) to help fund operational activities over a 5 year period
from FY 2015/2016.
28. There
would be no general rate impact and the open space and volcanic cones targeted
rate reserve would be fully utilised in providing this funding and would be
removed from the reserve accounts. Staff will progress discussions with the
Maunga Authority to seek agreement to the proposed transfer.
Transfer of the routine management of Maungauika / North Head from
the Department of Conservation to the Auckland Council
29. On
Tuesday, 5 August 2014, the Parks, Recreation and Sport Committee resolved
(Resolution number PAR/2014/48) to support the transfer of routine management
of Maungauika/North Head from the Department of Conservation to the Auckland
Council after 1 July 2015 subject to certain matters being met through
agreement with the Crown.d
30. A
copy of the full resolution is included in Attachment G.
31. The
increase in funding identified for the routine management of Maungauika / North
Head has been included in the funding request for the Tūpuna Maunga o
Tāmaki Makaurau Authority (Maunga 26. Authority) in Attachment C.
Consideration
Existing Budgets
32. The
identified existing budgets represent the baseline funding required for the
on-going routine management of reserves.
33. New
funding requirements for co-governance entities cover a range of matters
include appointing members to; supporting; administering; and funding existing
and newly established co-governance entities.
New funding estimates for co-governance entities
34. In
the early establishment phase, often as a result of legislation or environment
court decisions, an increase in operational funding is required to support the
preparation of strategic planning documents, such as Reserve Management Plans,
Operational Plans and Vision documents. This helps the co-governance entities
to set their strategic direction and start planning for the future management
of the reserves.
35. The
Maunga Authority, Parakai Recreation Reserve Board and Te Motu a Hiaroa
(Puketutu Island) Governance Trust are all in the early establishment phase
having been established over the last 2 years. The Maunga Authority funding
requirement also takes into account the transfer of routine management of
Maungauika / North Head to Auckland Council from the Department of Conservation
from 1 July 2015. In addition to this the Ngāti Whātua o
Ōrākei Reserves Board recently increased the area in which they
manage to include the Pourewa Creek Reserve as a result of a 2012 Treaty
settlement. The Reserve Management and Development Plan is currently being
reviewed within existing resources and reported to the Mutukaroa Trust Board in
December 2014.
36. Once
the co-governance entities have undertaken their strategic planning and have
developed a vision for their land, the next phase is to start planning for
capital development. This often helps to bring in new revenue streams or
enhance existing revenue streams to support the ongoing use and enjoyment of
the reserves for mana whenua and the public.
37. The
capital projects requirements are more focused on the outer years, although
Ngāti Whātua o Ōrākei Reserves Board and the Maunga
Authority have both identified some funding requirements in the short term
(next 3 years).
Ngāti Whātua o Ōrākei Reserve Board
Net Operational funding
38. The
co-governance responsibilities of the Ngāti Whātua o Ōrākei
Reserve Board has been extended through recent Treaty Settlement legislation
which resulted in an increase in funding request to include the Pourewa
Recreation Reserve. This additional funding has only been reflected in the
Annual Plan for FY 2014/2015. Additional operational funding is requested to
support this and is reflected in the Ngāti Whātua o Ōrākei
Reserve Board draft Financial Plan.
Capital projects
39. The
Ngāti Whātua o Ōrākei Reserves Board have reviewed their
draft Financial Plan and reprioritised a number of projects. The draft Financial Plan was first adopted
by the Board in 2013. In light of the current funding constraints the plan has
been rigorously reworked to ensure all projects have strong strategic alignment
with the Whenua Rangatira Management Plan and are able to be delivered in the
timeframe noted.
40. As a result of this process several projects have been pushed into
outer years while the Whare Waka (waka facility), Pou (posts) and Whare Taonga
(museum) have all been retained or moved forward given the readiness of the
reserves board to deliver these signature projects and the alignment with
Auckland Council’s event milestones.
Reprioritisation
41. In addition to the reprioritisation exercise undertaken by the
Ngāti Whātua o Ōrākei Reserves Board further
rationalisation has been undertaken resulting in the Pourewa Education Centre
is now unfunded. Also, any increase in the levels of service associated with
the Pourewa Creek Reserve are unfunded and will need to be subject to a
business case.
42. As a result of this further reprioritisation there should be no
impact on rates as a result of the additional funding request for Ngāti
Whātua o Ōrākei Reserves Board.
Tūpuna Maunga o Tāmaki Makaurau Authority (Maunga
Authority)
Net Operational funding
43. For
the Maunga Authority a significant investment is required over the first three
years to develop an Integrated Management Plan for the Maunga. During the
period of Treaty Settlement negotiations a lot of future planning and
investment has been put on hold. The Maunga Authority have identified the need
for additional Operational funding to bring service levels up to a higher
standard to respond to this period of underinvestment and low levels of
satisfaction for the care and maintenance of the maunga, mana whenua and the
community.
Capital projects
44. The
Maunga Authority has identified areas where they would like to focus their
investment in the short, medium and long term. As a short term measure it is
recommended that the Maunga Authority consider applying the $2.5M targeted rate
reserve to offset some of the operational funding costs in the first five
years.
45. Key
areas of investment focus on improvements to visitor experience, conservation
and heritage and community engagement and education programmes.
46. The
additional funding (OPEX and capital projects) associated with the transfer of
the routine management of Maungauika / North Head from Department of
Conservation to Auckland Council has been taken into account in the additional
funding requested.
Reprioritisation
47. The
Maunga Authority has a significant Operational funding requirement in the first
five years of establishment. This is related to the additional staff resources
to support the Maunga Authority and development of an Integrated Management
Plan.
Parakai Recreation Reserves Board
Net Operational funding
48. Parakai
Recreation Reserves Board also must prepare a Reserve Management Plan and have
a number of legacy issues relating to the lease arrangements that need to be
considered and resolved before more detailed planning can be undertaken. The
future costs of resolving the legacy issues is not able to be confirmed until
such time the issues with the lease arrangements have been resolved. At this
stage the funding requirement requested reflects the on-going costs of
maintaining the reserve with minor improvements to the Campground to improve
revenue streams over time with the aim of becoming more self-sustaining.
Capital projects
49. Parakai
Recreation Reserve Board is seeking minor funding to improve the campground
which should have flow on effects to improving revenue streams for the Reserve
over time.
Te Motu a Hiaroa (Puketutu Island) Governance Trust
Net Operational funding
50. Te
Motu a Hiaroa (Puketutu Island) Governance Trust is yet to hold their first
meeting and are still in the process of developing their Vision Document and
Management Plan that will help to set the strategic direction for the Island
and funding requirements for the development of the Park.
51. There
are a number of existing revenue streams associated with Te Motu a Hiaroa which
will fund the majority of the strategic planning. The funding that has been
identified is associated with the development of a Regional Park on the island
associated with Operational costs and routine management.
Capital projects
52. Te
Motu a Hiaroa (Puketutu Island) Governance Trust are not proposing to open the
first stage of the Park until FY 2018/2019 therefore capital funding is not proposed
to begin until 2017/2018.
Mutukaroa Trust Board (Hamlins Hill)
Net Operational funding
53. No
operational funding is required, this will be captured through existing Parks
and Planning budgets and work programmes.
Capital projects
54. Mutukaroa
Trust Board are proposing some investment to support the implementation of
their Reserve Management Plan.
Local board views and implications
55. A
number of Local Boards are involved in co-governance arrangements as Reserve
Board Members. The Ngāti Whatua o Orakei Reserves Board includes three
members of the Orakei Local Board. The Parakai Recreation Reserve Board
includes three members of the Rodney Local Board and the Maunga Authority
includes members from Maungakiekie-Tamaki Local Board, Orakei Local Board and
Albert-Eden Local Board. The final LTP will be adopted by 1 July 2015 and
agreed actions will apply across the council group including local boards.
Maori impact statement
56. It
is important that Co-governance entities have the opportunity to be a part of
the Long-term Plan 2015-2025 process. This involvement should be as early as
possible to ensure a meaningful outcome is achieved.
57. The
co-governance entities have all been informed of the Long Term Plan 2015-2025
process.
58. The
Ngāti Whātua o Ōrākei Reserves Board, Tūpuna Maunga o
Tāmaki Makaurau Authority (Maunga Authority) and Parakai Recreation
Reserves Board have all taken the opportunity to participate through a workshop
session. The Te Motu a Hiaroa (Puketutu Island) Governance Trust have not yet
commenced and are likely to have their first meeting early in 2015. The
Mutukaroa Trust Board were not able to meet in the timeframes available.
59. The
Co-governance entities will be kept informed of the Long Term Plan process as
it develops. As the detail of the Consultation process is confirmed, Council
officers will work with the co-governance entities to identify opportunities
for involvement up to June.
Implementation
60. A separate report on this agenda recommends that the committee agrees
draft budget envelopes to support consultation on the Long Term Plan 2015-2025
which reflect the projected costs of co-governance entities.
61. Subject to agreement by the Maunga Authority, the targeted rate
reserve fund of $2.5m will be used to offset operational costs in the first
five years of the LTP.
62. Council staff will continue to work with Co-governance entities
through-out the Long Term Plan 2015-2025 process.
Attachments
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No.
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Title
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Page
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aView
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Overview of Indicative Funding Requirements for Co-governance
Entities
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15
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bView
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Indicative Funding Requirements - Ngati Whatua o
Orakei Reserves Board
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17
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cView
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Indicative Funding Requirements – Tūpuna Maunga o
Tāmaki Makaurau Authority (Maunga Authority)
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19
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dView
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Indicative Funding Requirements – Parakai Recreation
Reserves Board
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21
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eView
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Indicative Funding Requirements – Te Motu a Hiaroa
(Puketutu Island) Governance Trust
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23
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fView
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Indicative Funding Requirements – Mutukaroa Trust
Board (Hamlins Hill)
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25
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gView
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Resolution to transfer routine management of
Maungauika / North Head to Auckland Council
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27
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Signatories
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Authors
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Jacky Bartley - Principal Planner
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Authorisers
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Matthew Walker - Manager Financial Plan Policy and
Budgeting
Grant Taylor - Governance Director
Kevin Ramsay - Chief Financial Officer
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