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Finance and
Performance Committee
19 March 2015
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The 2015-16
Levies for the Auckland Regional Amenities, the Auckland War Memorial Museum,
and the Museum of Transport and Technology
File No.: CP2015/03725
Purpose
1. To approve the
2015-16 levies for the Auckland War Memorial Museum (AWMM), and the Museum of
Transport and Technology (MOTAT).
2. To discuss the
Auckland Regional Amenities Funding Board’s (the Funding Board’s) annual plan.
Executive
Summary
3. The boards of
AWMM and MOTAT have prepared their respective draft annual plans for the
2015-16 financial year. These draft plans set out the proposed funding levy
sought from Auckland Council. The draft annual plans have been publically
consulted on.
4. Under the
Advisory and Management Agreement, RFA is the appointed advisor to Auckland
Council on the annual AWMM and MOTAT funding processes. RFA has made
submissions on both the AWMM and MOTAT draft annual plans.
5. It is RFA’s
role to consider and make recommendations to the Council on the statutory
levies imposed by MOTAT and AWMM. This report considers RFA’s recommendation
on the proposed levies.
MOTAT
6. The MOTAT
annual plan proposes a levy of $12.287 million, a 2.5 percent (or $300,000)
increase from 2014-15. RFA has recommended that the MOTAT levy be approved.
7. RFA’s view is
that MOTAT’s support of the Auckland Plan and the Auckland Arts and Culture
Strategic Action Plan is recognised within the museums draft annual plan. The
plan includes measures that relate to growing Maori participation in activities
and collaboration across the sector.
AWMM
8. AWMM’s draft
annul plan proposed a levy of $28.971 million, a 3.5% (or $980,000) increase
from 2014-15.
9. The AWMM, RFA,
and council staff, are in discussions regarding ways to reduce the proposed
increase in the levy. AWMM have indicated that they could possibly reduce the
proposed levy for 2015-16 if there was greater certainty regarding funding in
future years.
10. Consideration is
being given to the Master Plan, and the 10 year Operation Business Plan that
AWMM is developing. These discussions will provide a greater understanding of
the AWMM’s future funding requirements.
11. There is the
possibility that these discussions could lead to a three year funding
arrangement with AWMM, which could reduce the proposed 2015-16 levy. Staff are
supportive of a three year funding arrangement, as it would allow both Auckland
Council and the AWMM to plan with more certainty.
12. The Auckland War
Memorial Act requires the annual plan, and the levy, be agreed by 30 April. If
no agreement can be reached, the parties must go to arbitration.
13. It is
recommended that the Chair and Deputy Chair of this committee be delegated
authority to agree the levy for 2015-16, and, subject to negotiation, the terms
of a three year funding arrangement with the AWMM. The committee may wish to
indicate the parameters of such an arrangement.
Auckland Regional Amenities Funding Board
14. The Funding
Board has published its draft 2015-16 annual plan. This committee has
previously approved the council’s submission on the draft annual plan.
15. The Funding
Board has considered the submissions that it has received, and on 17 March will
recommend to council its final annual plan, including the levy sought from
Auckland Council.
16. The final annual
plan will not be available in time to go out with this agenda. However, it
will be tabled at the committee meeting for discussion. The final decision
whether to approve or reject the levy will be made at the Governing Body
meeting on 26 March.
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Recommendation/s
That the Finance and
Performance Committee:
a) approve the
2015-16 Museum of Transport and Technology levy of $12.287 million, as
recommended by Regional Facilities Auckland.
b) note that
discussions are ongoing between the Auckland War Memorial Museum, RFA, and
Auckland Council, as to the proposed levy for 2015-16.
c) agree in
principle, subject to negotiations, to a three year funding arrangement being
put in place with the Auckland War Memorial Museum.
d) delegate the
Chair and the Deputy Chair of the Finance and Performance committee authority
to agree the 2015-16 Auckland War Memorial Museum levy, and the terms of any
three year funding arrangement within any parameters indicated by the
committee.
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Comments
17. AWMM and MOTAT
operate under the following pieces of legislation:
· Auckland War Memorial Museum Act 1996
· Museum of Transport and Technology Act
2000
18. The legislation
requires both museums to publish draft annual plans, including details of the
proposed levy to be imposed on Auckland Council. These annual plans must be
consulted on publically.
19. Pursuant to the
Advisory and Management Agreement between RFA and Auckland Council, RFA has
been appointed Council’s advisor for the museums’ annual funding process. RFA
has made submissions on Auckland Council’s behalf to both AWMM and MOTAT.
20. Both AWMM and
MOTAT have considered the submissions they received, including from RFA.
21. RFA has assessed
the levies proposed by the museums, and made its recommendations to Auckland
Council. Letters containing RFA’s recommendations can be found at Attachment A
& B. Copies of AWMM and MOTAT’s annual plans can also be found at
Attachment C and D.
MOTAT
22. The MOTAT annual
plan proposes a levy of $12.287 million, a 2.5 percent (or $300,000) increase
from 2014-15. RFA has considered this levy in the context of the MOTAT’s
proposed annual plan, and its strategic plan, and recommended that the levy be
approved.
23. RFA notes that:
· The 2015/16 MOTAT draft annual plan
delivers on year two of MOTAT’s strategic vision.
· MOTAT’s support of the Auckland Plan and
the Auckland Arts and Culture Strategic Action Plan is recognised within the
museum’s draft annual plan. The plan includes measures that relate to growing
Maori participation in activities and collaboration across the sector.
RFA notes that a key priority in the plan
is to continue to improve the quality of the exhibitions and attractions,
aligning them to the strategy, and developing the visitor experience. This
will require improvements in the museum’s buildings and infrastructure. MOTAT
is working on a development plan to address these issues.
AWMM
24. In November 2014
the AWMM Board was considering a levy increase of 4.2%. This was subsequently
reduced to a $3.5% (or $980,000) increase in AWMM’s draft annul plan. The
total levy sought in the draft annual plan is $28.971 million.
25. The AWMM, RFA,
and council staff, have had discussions regarding reducing the proposed levy
increase. AWMM have indicated that this could be possible if there was greater
certainty regarding funding in future years.
26. The annual
funding process does not provide any certainty to the AWMM over the level of
funding it will receive in future years.
27. The AWMM is
developing a Master Plan for the development of the museum, together with a 10
year Operational Business Plan. If the AWMM had greater certainty over the
level of future years funding, it would be better able to plan the phasing of investment
in the museum, and plan with more certainty.
28. The possibility
of a three year funding arrangement has been discussed. The AWMM has indicated
that it could consider a three year funding arrangement with annual levy
increases of 3%, 3.5%, and 4.2% from 2015-16. It should be noted that the AWMM
board has yet to consider a proposal for a three year funding arrangement, or a
reduction in the levy proposed in the draft annual plan.
29. Due to the
ongoing nature of these discussions, RFA has not made a recommendation on the
levy proposed in the draft annual plan. Rather, RFA has recommended to
Auckland Council that discussions continue with the museum on a three year
funding arrangement.
30. Staff are
supportive of a three year funding arrangement, as it would allow both Auckland
Council and the AWMM to plan with more certainty.
31. The Auckland War
Memorial Act requires the annual plan, and the levy, be agreed by 30 April. If
no agreement can be reached, the parties must go to arbitration.
32. It is therefore
recommended that the Chair and Deputy Chair of this committee be delegated
authority to agree the levy for 2015-16, and if possible a three year funding
arrangement.
Auckland Regional Amenities Funding Board
33. The Funding
Board has published its draft 2015-16 annual plan. This committee has
previously approved the council’s submission on the draft annual plan.
34. The draft funding plan proposes a
total levy for 2015-16 of $15,148,400 representing an increase of $837,400 (or
5.85%) over 2014-15. However, a like for like comparison with last year’s
funding plan is difficult due to:
(i) the proposed levy for
2015-16 includes a step-up in funding of $1 million for the trial annualisation
of the Auckland Arts Festival from 2016.
(ii) one amenity, the
Auckland Rescue Helicopter Trust (ARHT) chose not to make an application to the
Funding Board. ARHT received $450,000 in 2014-15.
(iii) Stardome Observatory
received a one-off $150,000 increase in 2014-15 to undertake a strategic
review.
35. The Funding
Board has considered the submissions that it has received, and on 17 March will
recommend to council its final annual plan, including the levy sought from
Auckland Council.
36. The final annual
plan will not be available in time to go out with this agenda. However, it
will be tabled at the committee meeting for discussion. The final decision
whether to approve or reject the levy will be made at the 26 March Governing
Body meeting.
Budget issues
37. Details of the
total levies being sought by the AWMM, MOTAT, and the Funding Board are set out
in the table below:
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Organisation
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Proposed
levy
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AWMM
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$28,971,000
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MOTAT
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$12,287,000
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Funding Board
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$15,148,400
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Total
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$56,406,400
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Draft LTP
budget
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$57,079,346
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Consideration
Local
Board views and implications
38. Decision making
and oversight in respect of regional activities is the responsibility of the
Governing Body.
Māori
impact statement
39. AWMM and MOTAT
have the ability to make positive contributions to Maori wellbeing, and to
deliver on Auckland Plan outcomes relating to effective communication and
engagement with Maori.
40. In previous
year’s levy process, MOTAT and the AWMM were asked to engage with manawhenua
and mataawaka in the region, in relation to ongoing development of their respective
strategies.
41. In the last 12
months MOTAT has commenced a process to incorporate Maori language, culture and
technology into its exhibitions and education programmes. MOTAT has also
involved Ngati Whatua in its discussions regarding the development of the
Museum.
42. MOTAT is aiming
to develop a mutually rewarding relationship whereby iwi assist the museum to
highlight Maori knowledge, culture and views in ways that ensures it is
acknowledged, respected and passed on.
43. In its annual
plan, MOTAT states that it will build on the relationship that it has started
with Ngati Whatu in accordance with the principles of Te Tiriti o Waitangi.
MOTAT also states that it will ensure that the principles of Te Tiriti o
Waitangi and Maori customs and principles are incorporated and acknowledged
where appropriate.
44. The AWMM is
looking to accelerate Iwi and Maori engagement to enable them to reconnect with
locally and nationally significant taonga, and to increase knowledge of taonga.
45. One of the
AWMM’s projects, Te Awe, will help revitalise the Māori
galleries and other spaces in collaboration with iwi and other communities.
This project also aims to enhance research at the museum and provide richer
experiences for visitors to the museum onsite, online and offsite.
Implementation
46. There are no
implementation issues associated with this report.
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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RFA letter of recommendation AWMM
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11
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bView
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RFA letter of recommendation MOTAT
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15
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c
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AWMM draft annual plan 2015/16 (Under Separate
Cover)
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d
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MOTAT draft annual plan 2015/16 (Under Separate
Cover)
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Signatories
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Authors
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Alastair Cameron - Principal Advisor CCO Governance
and External Partnerships
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Authorisers
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John Bishop - Treasurer and Manager CCO Governance
& External Partnerships
Kevin Ramsay - Chief Financial Officer
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