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Resolution number GB/2015/31
MOVED
by Mayor LCM Brown, seconded by Cr RI Clow:
That the
Governing Body adopt the following recommendations of the 7 May 2015 Budget
Committee meeting, noting that this will result in rates increases and debt
and interest to revenue ratio as per the attached Budget Summary:
That the
Governing Body:
Item 11
– Long-term Plan 2015-2025 – Local Board Update
a) approve local proposals
outlined in Table 1 to the 7 May 2015 Budget Committee agenda report noting
that:
i) funding would be sourced
through local discretionary budgets
ii) local boards have yet to
make final local budget decisions in June 2015.
b) approve the transfer of $3.2
million of multi-board contestable grants funds to local board discretionary
budgets, to be allocated in alignment with the local boards funding policy.
To date, these funds have sat in regional budgets due to the nature of being
multi-board grants.
Item 12
– Long-term Plan 2015-2025 – Draft Tūpuna Maunga Operational Plan 2015/2016
a) approve
the budget endorsed by the Tūpuna Maunga o Tāmaki Makaurau.
Item 13
– Long-term Plan 2015-2025 – Mayor’s Report
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 7 May 2015 Budget Committee 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 7 May 2015 Budget
Committee 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 7 May 2015 Budget
Committee 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 7 May 2015 Budget Committee 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, 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 7
May 2015 Budget Committee 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 $1.6 million in 2015/2016 and $2.0 million
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 Ōrākei 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 the 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 ten year 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 the 2016 financial year, 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 7 May 2015
Budget Committee 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 7 May 2015 Budget Committee 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 adopt the
following changes to fees and charges for 2015/2016, noting the attached amended
schedule of street trading fees and rents:
a) standardised licensing fees
for street trading across Auckland, as included in Attachment B1 to the 7 May
2015 Budget Committee agenda report.
b) standardised rental fees for
street trading across Auckland, as included in Attachment B1 to the 7 May
2015 Budget Committee 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 till 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 7 May 2015 Budget Committee agenda
report.
e) standardised
event permit fees across Auckland, as included in Attachment B3 to the 7 May 2015 Budget Committee agenda
report.
f) standardised
fees for the remainder of the environmental health and licensing services, as
included in Attachment B4 to the 7 May 2015 Budget
Committee agenda report.
g) fees and
charges for building control, resource consents and property information, as
included in Attachment B5 to the 7 May 2015 Budget
Committee agenda report.
h) fees and charges for the
following services:
i) animal
management (Attachment B6 to the 7 May 2015
Budget Committee agenda report)
ii) food
premises (Attachment B7 to the 7 May 2015
Budget Committee agenda report)
iii) health
protection and hairdresser’s licensing (Attachment B8 to the 7 May 2015 Budget Committee agenda
report)
iv) Harbourmaster
service (Attachment B9 to the 7 May 2015
Budget Committee agenda report)
v) solid
waste bylaw licensing (Attachment B10 to the 7
May 2015 Budget Committee agenda report).
5 adopt
the following decisions on solid waste services, targeted rates and charges:
(Refer Attachment A to
the 7 May 2015 Budget Committee agenda report)
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. adopt the following changes
to Housing for Older Persons rentals: (Refer Attachment D to the 7 May 2015 Budget
Committee agenda report)
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. adopt
the following changes to the contributions policy: (Refer Attachment E to the 7 May 2015
Budget Committee agenda report)
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. adopt the following rates
policy decisions for the Long-term Plan 2015-2025: (Refer Attachment F to the 7 May 2015
Budget Committee agenda report)
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.
Item 14 - Long-term Plan
2015-2025 - Proposal to establish a new Urban Development Entity (Development
Auckland Limited)
a) agree to establish Development
Auckland Limited by amalgamating Auckland Council Property Limited and
Auckland Waterfront Development Agency Limited, having taken into account the
feedback from the public.
b) delegate to the Chief
Executive of Auckland Council the ability to undertake all necessary steps,
other than board appointments, to execute the establishment and transition of
Development Auckland Limited by 1 September 2015.
c) agree that the board
appointment process for Development Auckland Limited is delegated to the Council-Controlled
Organisation Governance & Monitoring Committee and will include the
following considerations:
i) the number of directors required on the board of Development
Auckland Limited
ii) the skills
requirements for the board of Development Auckland Limited
iii) which of the existing directors of
Auckland Council Properties Limited and Auckland Waterfront Development
Agency Limited have the skill sets likely to be valuable in the early establishment
phase of Development Auckland Limited.
d) agree that the proposed
budgets of Auckland Council Property Limited and Auckland Waterfront
Development Agency Limited will be consolidated from
1 September 2015 to 30 June 2025, as outlined in a separate report on the
7 May 2015 Budget Committee agenda.
e) note that the cost of
establishment and transition can be met through appropriate adjustments to
existing budgets, either through the Annual Plan 2016/2017 or as recommended
adjustments during the 2015/2016 financial year.
f) agree that the proposed
performance measures of Auckland Council Property Limited and Auckland
Waterfront Development Agency Limited, will be combined to form the initial
performance framework for Development Auckland Limited, as outlined in a
separate report on the 7 May 2015 Budget Committee agenda.
g) note that further reports
will be brought to the Council-Controlled Organisation Governance and
Monitoring committee to confirm more detailed operating parameters for Development
Auckland Limited, prior to its establishment.
h) agree that further
investigation should continue on value capture mechanisms in order to inform
future financial policy.
Item 17 - Long-term Plan 2015-2025 - Other Policies
a) note that updates to
reflect decisions made at the 7 May 2015 Budget Committee meeting will be
included in the:
i) Revenue
and financing policy
ii) Allocation
of decision making
iii) Council-Controlled
Organisation accountability policy
iv) Local
boards funding policy
v) Summary
of the Significance and engagement policy
vi) Financial
strategy
vii) Infrastructure
strategy.
b) note that the Revenue and
Financing Policy will be adopted by the Governing Body at its meeting on 25
June 2015, prior to adopting the Long-term Plan 2015-2025.
c) note that the other
policies and strategies will be adopted on 25 June 2015 as part of the
decision to adopt the Long-term Plan 2015-2025.
Item 18 - Long-term Plan 2015-2025 - Performance measures
a) agree the proposed changes
to performance measures and targets for inclusion in the final Long-term Plan
2015-2025.
A division was called for,
voting on which was as follows:
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For
Cr AJ Anae
Mayor LCM Brown
Cr CM Casey
Cr WB Cashmore
Cr RI Clow
Cr LA Cooper
Cr C Darby
Cr AM Filipaina
Deputy Mayor PA Hulse
Cr ME Lee
Cr CM Penrose
Cr WD Walker
Cr MP Webster
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Against
Cr CE Brewer
Cr CE Fletcher
Cr DA Krum
Cr SL Stewart
Cr J Watson
Cr GS Wood
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Abstained
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The motion was declared carried by 13 votes to 6.
CARRIED
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