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Governing Body
27 November
2014
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Adoption of
Contributions Policy
File No.: CP2014/27345
Purpose
1. This report
recommends adoption for consultation of the draft Contributions policy 2015 and
related public consultation documentation.
Executive
Summary
2. This is the
second of two reports to the Governing Body. The first report had policy
changes and was intended to be dealt with at an earlier Budget Committee (5
November). Due to timing, it is being dealt with now, together with the second
report. This report provides an overview of all other policy changes and
attaches the draft policy for public consultation.
3. The council is required to make
publicly available a draft Contributions Policy by 1 December 2014. The
consultation period will run to the same end point as the Long-term Plan
2015-2025 providing an opportunity for the contributions policy to be
considered alongside the other key funding matters. The draft Contributions
Policy includes a schedule of capital projects to be funded by development
contributions and the cost allocation methodology used to determine the
allocation of investment costs to growth. A draft policy is included as attachment
A.
4. The draft Contributions policy
2015 includes changes:
· to funding areas, demand factors and definitions of development type
agreed to under the previous item on this agenda
· to annually increase the development contribution charges by an
inflation factor
· to contributions charges based on the Long-term Plan 2015-2025
capital expenditure program agreed to on 5 November
· as a result of amendments to the contributions provisions of the
Local Government Act (LGA)
· of an editorial nature to improve clarity.
5. This
consultation must be supported by a document setting out the changes, the
reasons for the changes and alternatives that were considered. This must also
be adopted by the council. A draft consultation document is included as
attachment B.
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Recommendation/s
That the Governing Body:
a) adopt the draft
Contributions Policy 2015 and the summary consultation document as attached
to the agenda report.
b) delegate to
the Chair and Chief Finance Officer the authority to make any minor editorial
amendments to the draft Contributions Policy 2015.
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Background
6. The council made initial
amendments to its 2012 Contributions Policy in September 2014 as required by
the Local Government Act 2002 amendment Act 2014.
7. The LGA 2002, as amended in
2014, requires the council to make available to the public changes to its
contributions policy by 1 December 2014.
8. When consulting on changes to
its Contributions policy section 82A of the LGA requires the council to make
the following publicly available:
· the
proposal and the reasons for the proposal
· an
analysis of the reasonably practicable options, including the proposal,
identified under section 77(1)
· if
a plan or policy or similar document is proposed to be adopted, a draft of the
proposed plan, policy, or other document
· if
a plan or policy or similar document is proposed to be amended, details of the
proposed changes to the plan, policy, or other document.
9. For practical
reasons, consultation on the contributions policy will be coordinated alongside
other LTP items. The details of the LTP consultation process will be available
on the Auckland Council website from the end of January 2015.
Discussion
Key policy change
decisions
10. The proposed policy includes the
changes staff recommended in the previous report on this agenda. These are:
· increasing
the number of funding areas for stormwater and transport to better reflect the
different infrastructure investment required in different parts of the region
· setting
residential development charges based on dwelling size as well as type
· defining
commercial accommodation units as residential “accommodation units”
· including
Kaumatua housing in the retirement unit development type
· re-defining
minor dwellings units as small ancillary dwellings and increasing the demand
factor from 0.5 to 0.6.
Annual inflation
adjusted increase
11. The draft policy also
incorporates the council’s 6 November decision to increase the development
contribution price each year by an inflation factor. This will be applied to
the price for each development type, by activity, by funding area.
New contributions
charges
12. The full list of development
contributions charges can be calculated using schedule 3 of the policy.
Different charges are a reflection of development type, size and geographical
funding area. The average price for one HUE in the urban area is $19,055 in
2015/16.
13. The draft development
contribution price is a reflection of the draft capital expenditure program
agreed on 5 November. The prices may change based on final approval of the
capital expenditure program for the 2015-25 LTP following consultation.
14. The price is also affected by
amendments to the contributions provisions of the Local Government Act
discussed below.
LGA
changes
15. The amendments to the Local
Government Act require the council to respond to new provisions through its
draft policy and consult on those with the community. Key new provisions
include:
· new purpose and principles for development contributions
· changed definition of community infrastructure
· restrictions on charging development contributions for reserves
where a development is not residential in nature
· introduction of a new objections process
16. The policy reflects these changes
through the policy changes proposed in the previous report on this agenda, changes
to the schedule of capital projects to be funded by development contributions,
as well as a new section describing the objections process.
Editorial
17. Staff propose making editorial
changes to the policy to improve its accessibility by a wider audience and to
reflect new LGA provisions. The main editorial changes include:
· “overview
and purpose” consolidated and abbreviated
· transition
provisions simplified - all applications for consents lodged on or after 1 July
2015 assessed under new policy
· removal
of background discussion on role of the council, developers, existing rate
payers and incoming residents/businesses in reference to demand on growth
infrastructure
· removal
of funding area maps – available on council website.
Consideration
Local
Board Views and Implications
18. Two representatives of each local
board were invited to a briefing on the financial policies, including the
contributions policy, for the Long-term Plan 2015-2025 on 18 August 2014. A
further briefing was provided on 20 October 2014, to which all local board
members were invited. The 20 October 2014 briefing included analysis of
options for the contributions policy.
19. Local boards considered their
views on financial policy issues at workshops in September and October and
during their formal October meetings.
20. Many local boards support a contributions
policy that leads to efficient land use and an approach that sufficiently
provides infrastructure for growth in the existing urban area. Some local
boards support expenditure of development contributions in the areas in which
they are collected.
21. A more detailed report of local
board views was considered by the Budget committee at their meeting on 5
November 2014. This included the full text of their resolutions on financial
policy issues.
Maori
Impact Statement
22. Council does not hold information
on the ethnicity of developers. The impact on Maori will be similar to the
impact on other residents and ratepayers.
23. The council is developing a
grants scheme which will offer funding equivalent to the cost of development
contributions for qualifying Papakainga housing. Maori will also benefit from
the lower demand factor proposed for Kaumatua housing from its inclusion in the
retirement unit category rather than the standard dwelling type.
Significance
24. Adoption of a
contributions policy is a significant decision and will be consulted on
alongside the Long-term Plan 2015-2025.
Implementation
Issues
25. Issues
associated with implementing the options presented in this report have been
included for consideration.
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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Draft Contributions Policy 2015
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9
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bView
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Summary of Changes to Contributions Policy Changes
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37
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Signatories
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Authors
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Andrew Duncan - Manager Financial Policy
Claes Sandstrom, Senior Advisor
Bobbi Parkinson, Principal Advisor
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Authorisers
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Matthew Walker - Manager Financial Planning, Policy
and Budgeting
Stephen Town - Chief Executive
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Governing Body
27 November
2014
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Long-term Plan Performance Measures and Targets for
Transport Theme
File No.: CP2014/27348
Purpose
1. To agree to the
level of service statements, performance measures and targets for each group of
activity included within the Transport Theme for the draft Long-term Plan
2015-2025 for the Basic Transport Network.
Executive
Summary
2. Auckland
Transport have rationalised and improved the performance measures to be
included in supporting consultation documents for the draft Long-term Plan
2015-2025 (LTP) to ensure they create a meaningful basis for accountability for
the levels of service delivered.
3. This follows
direction that the group measures should be more succinct, measurable and
better support accountability.
4. The key changes
to the transport measures are:
i. inclusion of required Department
of Internal Affairs measures
ii. aggregation of
measures such as the individual public transport modes
iii. removal of
measures where Auckland Transport is not directly accountable for the outcomes.
5. Auckland Transport Board
reporting covering further detail on measures, including split of public
transport modes, is made publicly available on the Auckland Transport website.
6. The targets are aligned to the
funding for the Basic Transport Network.
7. The level of service statement,
measures and targets cover Public Transport, Roads and Footpaths, and Parking
and Enforcement activities under the Transport Theme.
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Recommendation/s
That the Governing Body:
a) agree the
levels of service statements, performance measures and targets for each group
of activity contained within the Transport Theme for inclusion in the
supporting consultation documents for the draft Long-term Plan 2015-2025.
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Comments
8. As part of the
development of the draft Long-term Plan 2015-2025, the Performance Measure
work-stream and Auckland Transport conducted an in-depth review of performance
measures. The process included sharing the development of the measures through
sub-committees and engagement with IMSB representatives.
9. This has
resulted in a succinct set of community focused performance measures and
pragmatic targets for each group of activities, which are aligned to the
Auckland Plan.
10. Where a CCO was
not directly accountable for the outcome of a measure, or there was difficulty
quantifying the measure, these have been excluded.
11. The Department
of Internal Affairs has outlined mandatory infrastructure performance measures
that are applicable to all councils. The specific transport measures have been
included.
12. The targets
proposed align to funding for the Basic Transport Network.
13. The agreed set
of level of service statements, performance measures and targets will be
included in the documents that support consultation for the draft LTP which
will be adopted at the 18 December 2014 Governing Body meeting.
14. Auckland
Transport have aggregated measures at the LTP level. Detailed breakdown,
including public transport mode split, is publically available on Auckland
Transport’s website. This includes additional measures and statistics.
Consideration
Local
Board Views and Implications
15. The Transport Theme level of
service statements, measures and targets are set at a regional level.
Maori
Impact Statement
16. The process
included sharing the development of the measures through Te Waka Angamua and
IMSB representatives.
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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Performance measures and targets: Transport Theme
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45
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Signatories
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Authors
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Robert Irvine - Financial Planning Manager CCOs
Tushar Shreyakar – Senior Advisor CCOs
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Authorisers
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Matthew Walker - Manager Financial Plan Policy and
Budgeting
Stephen Town - Chief Executive
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