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For clarity
the resolutions for this item are as follows:
Long-term
Plan 2015-2025 – Mayor’s Report
That the Budget Committee recommend
to the Governing Body that it:
1. approve that the transport
budgets for the final Long-term Plan 2015-2025 be
based on the draft budgets, adjusted for the updates set out in the staff
reports, with the following changes:
a) inclusion of an interim transport
capital expenditure budget for the first three years of the Long-term Plan 2015-2025, as follows:
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2015/16
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2016/17
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2017/18
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Additional transport capital
expenditure
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$170
million
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$174
million
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$179
million
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b) funding of
the council share of the interim transport programme to be by way of a
Transport Levy (targeted rate), set at $99 plus GST per separately used or
inhabited part (SUIP) for non-business ratepayers and $159 plus GST per SUIP
for business ratepayers.
c) a review of the application of the transport levy to the
business sector be carried out as part of the Annual Plan 2016/2017, in
consultation with the business sector.
2. approve
that the Mayor and Chief Executive engage with the government to enable the
implementation of an alternative funding system by 2018/2019 to fund the
implementation of the Auckland Plan Transport Network for the Long-term Plan
2018-2028.
3. approve that the budget
(excluding transport) for the final Long-term Plan 2015-2025
be based on the draft budgets, adjusted for the updates set out in the
staff reports, and to incorporate the following changes and specific
decisions:
Auckland
Development (Refer Attachment A to the agenda report)
a) the funding of the Vos Yard
project from the Heritage Acquisition fund be referred to the Auckland
Development Committee, as there is no Long-term Plan 2015-2025
budget impact.
Economic
and Cultural Development (Refer Attachment A to the agenda report)
a) the additional capital expenditure
of $6 million for GridAKL be approved, on the basis that the consequential
operating expenditure be managed through the existing Auckland Tourism,
Events and Economic Development operating budget.
b) that Regional Facilities Auckland undertakes in good faith, to
meet with the sporting codes and stakeholders affected by the stadium
strategy and consider all options and report back to the council for
information within a maximum period of 12 months.
Environmental
Management and Regulation (Refer Attachment A, A4 to the agenda
report)
a) a
standardised annual inorganic collection service (on-property, booked in
advance) to be implemented and paid for via the solid waste targeted rate.
b) provide up
to $9 million per annum (an increase of $3 million per annum) of financial
assistance for the Retrofit your Home programme, but with a maximum debt
exposure of $35 million.
c) reinstate the
budget of $158,000 for National Biological Control and offset this with the
staff savings identified in the staff memorandum of 6 May 2015.
d) staff be
directed to undertake the following, with the Manukau Harbour Forum:
i) identify
the current, whole-of-council integrated programme of work related to the
Manukau Harbour
ii) identify
the scope and cost of hydrodynamic modelling of the Manukau Harbour
iii) present
options and recommendations for the future programme of work in the Manukau
Harbour, including the option of hydrodynamic modelling of the harbour
iv) work with
and discuss this work programme with the Manukau Harbour Forum, prior to
reporting back with recommendations to the Regional Strategy and Policy
Committee
v) that
$400,000 be set aside (within existing budgets) to undertake hydrodynamic
modelling within the first three years of the Long-term Plan 2015-2025,
subject to the Regional Strategy and Policy Committee decisions in iv) above,
noting that unless additional money is provided, reprioritisation of projects
will need to occur.
e) staff be directed to report back to the Regional Strategy and
Policy Committee on the outcome of the work undertaken in d) above, with a
view to approving any additional funding that may be required as part of the
Annual Plan 2016/2017.
f) increase the budget for Environmental Management and Regulation by
$161,000 for one additional year, to provide for the continuation of regional
funding for the Sustainable Neighbourhoods Programme, until 30 June 2016.
This provides transition for this programme prior to the more full
implementation of the empowered community and volunteer programme approaches
to be more widely adopted across council, including for example environmental
services and education.
Governance
and Support (Refer Attachment A, A6 to the agenda report)
a) increase
the funding of the Parakai Reserves Board by $279,000 operating expenditure
(rates impact of $169,000) and $50,000 capital expenditure over ten years, as
set out in the staff report.
b) reinstate
the funding of Ngāti Whātua Ōrākei Reserves Board by a
total of $811,000 operating expenditure over ten years, as set out in the
staff report.
c) reinstate the funding of the
City of Manukau Education Trust (COMET) by $235,000 per annum.
d) provide an
underwrite of up to $450,000 to the Auckland Rescue Helicopter (Capital)
Trust for the purchase costs of a new rescue helicopter. The underwrite would
be provided by way of a capital grant of up to $450,000 to the Trust as a
contribution towards the purchase costs of a new rescue helicopter, and will
be:
i) the difference between the
fundraising target, and the amount raised by the Trust (including the sale of
the current helicopter), up to a maximum of $450,000. The final amount of the
grant will be determined at the time of purchase
ii) provided immediately prior to the
settlement of the purchase, which is anticipated to be in the 2016/2017
financial year
iii) subject to
signoff of the business case by the council’s Chief Financial Officer.
Parks Community and Lifestyle (Refer Attachment A, A5, A8, A9 to the
agenda report)
a) note that an Empowered Communities approach will be implemented
during the 2015/2016 financial year with detail of the proposed Community Development
and Safety model to be presented to the Regional Strategy and Policy
Committee on 4 June 2015.
b) note that the
associated savings target of $1.6million in 2015/2016 and $2.0million per
annum each year thereafter, until 2025, has been included in the budget and
that any necessary review of implementation and related budget can be
undertaken as part of the Annual Plan 2016/2017 process.
c) provide
funding of $1.9 million over the first four years of the Long-term Plan
2015-2025 to Surf Lifesaving Northern Region, for the purposes of redevelopment
of the highest priority surf clubs, in line with their request.
d) increase the
regional grants budget by $350,000 per annum, in line with the 2014/2015
level of funding.
e) provide
funding of $300,000 operating expenditure in year one of the Long-term Plan 2015-2025, $100,000 operating expenditure in
year two and $600,000 capital expenditure in year three for a World War 1
memorial in the Domain, noting that this will allow applications for funding
from other sources.
f) the
reduction of $2 million in Libraries and Information operational budgets
includes a revised standardisation of library opening hours to achieve an
equitable base service level across the region, increased revenue through
changes to fees and charges, and service efficiencies (Attachment 1 to the
memorandum dated 6 May 2015).
g) fees and
charges for library and information services are approved as included in
Attachment 2 to the memorandum dated 6 May 2015.
h) endorse
the continuation of $350,000 operating grant (from existing provision in the
budget) to the James Wallace Arts Trust.
i) provide a
budget of $360,000 for years one and two of the Long-term
Plan 2015-2025, and $110,000 for year three; for emergency housing,
homelessness and rough-sleeping responses across Auckland.
j) the Ōrākei Local Board use its locally driven initiatives fund (LDI) to
fund the consequential operating expenditure of bringing forward the
Meadowbank Community Centre upgrade.
k) if j) is agreed
by the Orakei Local Board, amend the proposed Long-term Plan 2015-2025 to
bring forward the upgrade of the Meadowbank Community Centre from 2020/2021
to 2016/2017 as per previous resolutions agreed to in the Strategy and
Finance Committee meetings held on 23 May 2012 and 9 May 2013.
l) note the urgent requirement to remedy erosion problems in Orewa
and address this as part of a wider erosion, sea level rise and inundation
study to be brought back to council by August 2015, noting that funding for
consents is available.
m) that the Regional Events budget be increased by
$200,000 annually over the Long-term Plan 2015-2025 period.
n) that the Auckland Festival of Photography
receives annualised funding through the Long-term Plan 2015-2025, amounting
to $72,000 per annum.
o) that budget for street garden annual plantings
in town centres be reinstated for 2015/2016 , with a rates requirement of
$50,000 or 0.004 per cent, to better enable local boards to consider the
transition to lower operating expenditure planting options.
Water
Supply and Wastewater (Refer
Attachment A to the agenda report)
a) confirm
the budgets and water and wastewater pricing increases as set out in the
updated budgets.
Local Board Discretionary Capital Expenditure
a) provide a new Local Board
discretionary capital expenditure fund of $10 million per annum, noting that
this will incorporate the existing Facilities Partnership Fund.
b) approve the following
parameters for this fund:
i) the fund may be managed as a three year amount
ii) local boards may use the fund
to build council-owned assets, add to an existing council-funded renewal or
new capital project, work in partnership with an external provider or seed
fund a community project.
c) ask staff and local boards to
develop a formula for allocation and criteria for qualifying projects and
report back to the Finance and Performance Committee.
Māori Transformational Shift (Refer Attachment A7 to the agenda report)
a) note that
further work on the council-funded activities and budgets that contribute to
Māori wellbeing in the Long-term Plan 2015-2025 has identified $104.2 million of contribution over the ten years.
b) note that the
total budget for co-governance and co-management arrangements in the Long-term Plan 2015-2025 is $81.5 million.
c) agree that the work on identifying programmes contributing to the
Māori transformational shift and outcomes, as part of the Te Toa
Takitini scoping work, identifies at least an additional $5 million for
2016/2017 and report this to the Finance and Performance Committee in
September 2015.
d) agree to identify $2 million (over three years, commencing
2015/2016) to implement the council’s response programme to the priority
recommendations in the Independent Māori Statutory Board’s 2014 Treaty Audit report, including
increasing the roll-out of Māori Responsiveness Plans and senior staff
training.
e) note that the Chief Executive, through
the Te Toa Takitini executive leadership group, will have oversight over both
of these resolutions c) and d) above and will receive quarterly progress
reports on them.
4 That the
Budget Committee recommend to the Governing Body the adoption of the following
changes to fees and charges for 2015/2016:
a) standardised licensing fees for
street trading across Auckland, as included in Attachment B1 agenda report.
b) standardised rental fees for
street trading across Auckland, as included in Attachment B1 to the agenda
report, which include the following amendments to the draft proposal:
i) an
additional six-month rental option for seasonal outdoor dining operators
ii) simplified
rent for mobile vendors, based on typical size and hours, with extra-large
vendors being charged an over-size fee
iii) that Orewa be
put into tier three
iv) for outdoor
dining, where no licence has previously been charged, only the licence will
be charged in the first and second year
v) for outdoor
dining, where there has been no licence fee charged previously, the rental
fee charges be deferred until the 2017/2018 year.
c) any increases to street
trading charges (licence fee and rent combined) for existing licensees
resulting from the implementation of a) and b) above, be capped at $500 per
licensee per year, for three years, starting 2015/2016.
d) standardised
cemetery fees across Auckland, as included in Attachment B2 to the agenda report.
e) standardised
event permit fees across Auckland, as included in Attachment B3 to the agenda report.
f) standardised
fees for the remainder of the environmental health and licensing services, as
included in Attachment B4 to the agenda report.
g) fees and
charges for building control, resource consents and property information, as
included in agenda report.
h) fees and charges for the following
services:
i) animal management
(Attachment B6 to the agenda
report)
ii) food
premises (Attachment B7 to the agenda report)
iii) health
protection and hairdresser’s licensing (Attachment B8 to the agenda report)
iv) Harbourmaster
service (Attachment B9 to the agenda report)
v) solid waste
bylaw licensing (Attachment B10 to the agenda report).
5 That
the Budget Committee recommend to the Governing Body the adoption of the
following decisions on solid waste services, targeted rates and charges:
a) introduction of a new annual,
on-property, pre-booked inorganic collection service from 2015/2016, to be
funded from the waste management targeted rate.
b) the targeted rate for solid
waste services, including the annual inorganic service, in the former council
areas be standardised where services, costs and funding methods are similar,
for 2015/2016 as follows:
i) Auckland City (including
Hauraki Gulf Islands) and Manukau City (adjusted as appropriate in Auckland
City to provide for the rates where a ratepayer has opted out of either or
both of refuse and recycling services)
ii) North Shore and Waitakere
iii) Rodney
iv) Franklin and Papakura (adjusted
as appropriate in rural Franklin where a ratepayer does not receive a
recycling service).
c) that the costs of providing
solid waste services to the Hauraki Gulf Islands in excess of targeted rates
revenue from the area be met from the solid waste targeted rates for all of
the Auckland region, rather than just the former Auckland City area.
d) staff continue to work with the
local communities of the Hauraki Gulf Islands to reduce costs and rationalise
services where possible.
e) user charges billed to the
property owner for refuse for the former Auckland City (including the Hauraki
Gulf Islands) and Manukau City areas be gradually introduced from the 2017/2018
financial year.
f) recycling services continue to
be funded from the waste management targeted rate.
g) the new organic collection to
be funded from the waste management targeted rate where the service becomes
available.
h) standardised existing bag
charges at competitive rates in areas where the service is provided by the
council.
6. That the
Budget Committee recommend to the Governing Body the adoption of the
following changes to Housing for Older Persons rentals:
a) the rent on the council’s Housing
for Older Persons units be set at 30 per cent of tenants’ pre-tax income.
b) the rent on the council’s
Housing for Older Persons units be adjusted annually based on tenants’
income.
c) for any given year, changes
to annual rents on the council’s Housing for Older Persons units (including
increases and decreases) for existing tenants resulting from a) above, be
capped at $10 per week, implemented in $5 steps at six-month intervals.
7. That the Budget Committee recommend to the Governing Body the adoption
of the following changes to the contributions policy:
a) that the proposed
contributions policy be amended as follows:
i) replace the
funding areas for reserve acquisition, reserve development and community
infrastructure with the following four areas: Auckland Wide,
Greenfield, Urban and Rural and report back in October 2015 on a further
refinement to 18 areas
ii) replace the
stormwater funding catchment areas with the following areas:
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Stormwater
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Helensville
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Manukau Central
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Kumeu / Huapai
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Pukekohe / Waiuku
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Warkworth
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Manukau South
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Hibiscus Coast
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Manukau West
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East Coast Bays
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Tamaki West
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Mahurangi
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Tamaki East
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Waitemata North
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Wairoa
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Waitemata West
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Ararimu
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Waitemata Central
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Waitakere Ranges
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Waitemata Northwest
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Urban Auckland
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Manukau North
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Other
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iii) reduce
the unit of demand factor for attached dwellings (low rise) to reflect the
lower levels of demand associated with higher density developments
iv) reduce the
unit of demand factors for retirement village units and aged care rooms to
exclude costs for sports fields and playgrounds
v) allow the
council the discretion to offer a reduction of contribution charges for
stormwater, where developers provide relevant infrastructure.
b) note that the Contributions
Policy will be updated for the decisions made on capital expenditure and
adopted alongside the Long-term Plan 2015-2025 on 25 June 2015.
c) note that staff will report back
on further refinements to the funding areas for reserve acquisition, reserve development and community infrastructure, for consideration
alongside the Annual Plan 2016/2017.
9. That the
Budget Committee recommend to the Governing Body the adoption of the
rates policy decisions for the Long-term Plan 2015-2025:
a) a uniform
annual general charge of $385 for 2015/2016, amended each following year of
the Long-term Plan 2015-2025 by the amount of the average rates increase.
b) that the
long-term business differential strategy be amended to achieve a proportion
of general rates collected from business ratepayers of 33.0 per cent for 2015/2016,
falling to 25.8 per cent by 2036/2037, in equal steps, and that the
differential ratio for business be set annually to reflect this.
c) that in line
with the amendments to the overall business differential strategy, the
Franklin business differential be set at a level which will align with the
overall business sector in 2016/2017.
d) no further
rates transition.
e) extension of
the city centre programme and targeted rate to 2025, funding the depreciation
and consequential operating expenditure of city centre programme projects
from the general rate from 2019/2020, and introduction of a city centre
targeted rate of $57.50 per separately used or inhabited part of a property
on city centre residents.
f) increase
Mangere-Otahuhu swimming pool targeted rate to fund free adult entry to the
new Otahuhu swimming pool.
g) create a new
rating differential for properties with no road access (including properties
currently classified as sea only access) and set the differential at 0.25
(current sea only access differential).
h) rates
related policies as proposed in the consultation document:
i) setting the
Uniform Annual General Charge based on separately used or inhabited parts of
a rating unit
ii) setting the value based general rate using
capital value
iii) the general rate differential categories and
descriptions
iv) all targeted rates except waste management,
transport and those in b) and c) above
v) the early payment discount policy
vi) the instalment dates and penalties.
i) direct staff
to report back for consideration as part of development of the Annual Plan
2016/2017, on rating options for:
i) motels and
other temporary accommodation
ii) Māori freehold land.
j) direct staff to complete
further work on rates postponement options as a mechanism for assisting
rating affordability issues and report this back to the Finance and
Performance Committee.
k) direct staff to report back to
the Finance and Performance Committee on options for amending the remission
for residents of licence to occupy retirement villages to include the
proposed targeted transport levy.
The following resolutions were
not recommended to the Governing Body:
1. That the Budget
Committee
d) note the significantly
higher rail operating costs for Auckland compared to Wellington and requests the
Chief Executive to work with Auckland Transport and report back on options
for potential savings in these costs as part of developing the Annual Plan
2016/2017.
e) recommend that the Chief
Executives of Auckland Council and Auckland Transport review the Transport
Programme in view of the feedback received during the consultation process
and report back to the Finance and Performance Committee.
8. That the Budget
Committee:
a) agree to
undertake a review of Auckland Council's mix of funding sources to inform the
Annual Plan 2016/2017, with the broad objectives of further reducing the
proportion of council revenue funded from rates, maximising the return on
council’s investments and exploring alternative sources of funding, including
from the optimisation of assets that are poorly aligned with council's core
business and the broader strategic growth priorities for Auckland.
b) direct the
Chief Executive to commence the design of the review and its associated
processes following the release of the Local Government New Zealand Funding
Review Final Report in June 2015.
c) request that
the terms of reference for the review be reported back to the July 2015 meeting
of the Finance and Performance Committee.
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