Those powers which cannot legally be delegated:
(a) the power to make a
rate; or
(b) the power to make a
bylaw; or
(c) the power to borrow money, or
purchase or dispose of assets, other than in accordance with the long term
council community plan; or
(d) the power to adopt a
long term plan, annual plan, or annual report; or
(e) the power to appoint a
Chief Executive; or
(f) the power to adopt policies
required to be adopted and consulted on under the Local Government Act 2002 in
association with the long term plan or developed for the purpose of the local
governance statement; or
(g) the power to adopt a remuneration and employment
policy.
Additional responsibilities retained by the Governing Body:
(a) approval of a draft long term
plan or draft annual plan prior to community consultation
(b) approval of a draft bylaw prior
to community consultation
(c) resolutions required to be made
by a local authority under the Local Electoral Act 2001, including the
appointment of electoral officer
(d) adoption of, and amendment to,
the Committee Terms of Reference, Standing Orders and Code of Conduct
(e) relationships with the
Independent Māori Statutory Board, including the funding agreement and
appointments to committees.
(f) approval of the Unitary Plan
(g) overview
of the implementation of the Auckland Plan through setting direction on key
strategic projects (e.g. the City Rail Link and the alternative funding
mechanisms for transport) and receiving regular reporting on the overall
achievement of Auckland Plan priorities and performance measures.
Exclusion of the public – who needs to
leave the meeting
Members of the public
All members of the public must leave the
meeting when the public are excluded unless a resolution is passed permitting a
person to remain because their knowledge will assist the meeting.
Those who are not members of the public
General principles
·
Access to confidential information is managed on a “need to know”
basis where access to the information is required in order for a person to
perform their role.
·
Those who are not members of the meeting (see list below) must
leave unless it is necessary for them to remain and hear the debate in order to
perform their role.
·
Those who need to be present for one confidential item can remain
only for that item and must leave the room for any other confidential items.
·
In any case of doubt, the ruling of the chairperson is final.
Members of the meeting
·
The members of the meeting remain (all Governing Body members if
the meeting is a Governing Body meeting; all members of the committee if the
meeting is a committee meeting).
·
However, standing orders require that a councillor who has a
pecuniary conflict of interest leave the room.
·
All councillors have the right to attend any meeting of a
committee and councillors who are not members of a committee may remain,
subject to any limitations in standing orders.
Independent Māori Statutory Board
·
Members of the Independent Māori
Statutory Board who are appointed members of the committee remain.
·
Independent Māori Statutory Board
members and staff remain if this is necessary in order for them to perform
their role.
Staff
·
All staff supporting the meeting (administrative, senior
management) remain.
·
Other staff who need to because of their role may remain.
Local Board members
·
Local Board members who need to hear the matter being discussed
in order to perform their role may remain. This will usually be if the matter
affects, or is relevant to, a particular Local Board area.
Council Controlled Organisations
·
Representatives of a Council Controlled Organisation can remain
only if required to for discussion of a matter relevant to the Council Controlled
Organisation.
His Worship the
Mayor will read the affirmation.
2 Apologies
At the close of
the agenda no apologies had been received.
3 Declaration of Interest
Members are
reminded of the need to be vigilant to stand aside from decision making when a
conflict arises between their role as a member and any private or other
external interest they might have.
4 Confirmation of Minutes
|
That the Governing Body:
a)
confirm the ordinary minutes of its meeting,
held on Wednesday, 25 May 2016, including the
confidential section, as a true and correct record.
|
5 Acknowledgements and Achievements
His
Worship the Mayor will acknowledge the passing of Marguerite (Margaret)
Jones and recognise the Auckland Council Group’s achievements
during the month of June.
6 Petitions
7 Public Input
Standing Order
7.7 provides for Public Input. Applications to speak must be made to the
Democracy Advisor, in writing, no later than one (1) clear working day
prior to the meeting and must include the subject matter. The meeting
Chairperson has the discretion to decline any application that does not meet
the requirements of Standing Orders. A maximum of thirty (30) minutes
is allocated to the period for public input with five (5) minutes
speaking time for each speaker.
At the close of
the agenda no requests for public input had been received.
8 Local Board Input
Standing Order
6.2 provides for Local Board Input. The Chairperson (or nominee of that
Chairperson) is entitled to speak for up to five (5) minutes during this
time. The Chairperson of the Local Board (or nominee of that Chairperson)
shall wherever practical, give one (1) day’s notice of their wish to
speak. The meeting Chairperson has the discretion to decline any application
that does not meet the requirements of Standing Orders.
This right is
in addition to the right under Standing Order 6.1 to speak to matters on the
agenda.
At the close of
the agenda no requests for local board input had been received.
9 Extraordinary Business
Section 46A(7)
of the Local Government Official Information and Meetings Act 1987 (as amended)
states:
“An item that is
not on the agenda for a meeting may be dealt with at that meeting if-
(a) The local authority by resolution so decides; and
(b) The presiding member explains at the meeting, at a time
when it is open to the public,-
(i) The
reason why the item is not on the agenda; and
(ii) The reason why the discussion of the item cannot be
delayed until a subsequent meeting.”
Section 46A(7A)
of the Local Government Official Information and Meetings Act 1987 (as amended)
states:
“Where an item
is not on the agenda for a meeting,-
(a) That item may be discussed at that meeting if-
(i) That item is a minor matter relating to the general
business of the local authority; and
(ii) the presiding member explains at the beginning of the
meeting, at a time when it is open to the public, that the item will be
discussed at the meeting; but
(b) no resolution, decision or recommendation may be made in
respect of that item except to refer that item to a subsequent meeting of the
local authority for further discussion.”
10 Notices of Motion
At the close of
the agenda no requests for notices of motion had been received.
|
Governing Body
30 June 2016
|
|
Adoption of the
Annual Budget 2016/2017 (annual plan)
File No.: CP2016/12883
Purpose
1. To adopt the Annual Budget
2016/2017 (annual plan), including 21 Local Board Agreements.
Executive
summary
2. Once every three years, the
council is required to adopt a ten-year budget (long-term plan), and in the
intervening years an annual budget (annual plan). These plans set out the
service levels and budgets for the coming year(s) as well as being used to set
rates.
3. Legislative changes mean that
the council no longer produces a draft annual plan for consultation. Instead
consultation now focuses on any significant or material differences to the
ten-year budget.
4. On 17 December 2015, the
Governing Body agreed the consultation topics for the Annual Budget 2016/2017.
In mid-December 2015, local boards also met to adopt their consultation content
that covered key local proposals and advocacy areas. On 10 February 2016, the
Governing Body adopted the consultation document, supporting material, and
agreed to the approach to consultation.
5. Between 15 February and 24 March
2016, Auckland Council undertook public consultation. Consultation included the
draft Tūpuna Maunga Authority Operational Plan, local board priorities and
potential changes to rating policies. Around 3,300 written submissions were
received, along with feedback provided in-person at Have Your Say events and
through social media.
6. On 13 May 2016, following the
consideration of feedback received and political discussions, the Governing
Body agreed decisions to finalise the Annual Budget 2016/2017. The Annual
Budget 2016/2017 has been prepared reflecting these decisions. In particular,
it includes:
· prospective
financial statements and other financial information based on year two of the
ten-year Budget updated to reflect the budget decisions made on 13 May 2016
· rating
policy, reflecting decisions made on 13 May 2016
· local
board agreements – as adopted by local boards between 8-15 June 2016
· the
summary of the Tūpuna Maunga Authority Operational Plan 2016/2017, as
adopted on 13 May 2016.
7. The Local Government Act 2002
requires the council to adopt the Annual Budget 2016/2017 before 1 July 2016.
Following adoption, staff will prepare the final documentation for distribution
and also undertake activity to close the consultation loop with Aucklanders.
8. The setting of rates for
2016/2017 will be considered in a separate report on the Governing Body agenda
for 30 June 2016, following the adoption of the Annual Budget 2016/2017.
|
Recommendation/s
That the Governing Body:
a) adopt the Annual Budget
2016/2017 (annual plan), including 21 local board agreements.
b) delegate the authority and
responsibility for agreeing any required minor editorial changes and the
correction of minor errors to the Annual Budget 2016/2017 (annual plan)
document to the Chair of the Finance and Performance Committee, and the Group
Chief Financial Officer.
|
Comments
Background
9. Once every three years, the
council is required to adopt a ten-year budget (long-term plan), and in the
intervening years an annual budget (annual plan). These plans set out the
service levels and budgets for the coming year as well as being used to set
rates.
10. The ten-year Budget 2015-2025,
set out a capital investment programme of $18.7 billion, while capping rates
increases at no more than an average of 3.5 per cent. Total council borrowings
were forecast to rise from $7.2 billion to $11.6 billion, while assets were
forecast to increase from $42 billion to $60 billion in 2024/2025. For
2016/2017 the ten-year Budget forecast rates to increase by 3.2 per cent, with
$1.9 billion of capital investment and operating expenditure of $3.7 billion,
with operating revenue continuing to be less than total operating expenditure
in line with council’s policy of moving towards fully funding depreciation by
2025.
11. Legislative changes mean that the
council no longer produces a draft annual budget for consultation. Instead
consultation now focuses on significant or material differences to the ten-year
Budget 2015-2025.
12. Each year an agreement must be
developed for each local board that sets out priorities, budgets and intended
levels of service for local activities, and the capital and operating
expenditure required to fund these activities. These agreements between local
boards and the Governing Body are made as part of the annual budget or ten-year
budget process.
13. Each year a Tūpuna Maunga
Operational Plan is developed to provide a framework in which the council will
carry out its functions for the routine management of the maunga and
administered lands. The Tūpuna Maunga Operational Plan must be adopted
concurrently with the council’s annual budget and be included in summary form
in the annual budget.
Developing
the consultation document
14. The process to develop council’s
consultation document for the Annual Budget 2016/2017 began with a programme
briefing to the Finance and Performance Committee in August 2015. Workshops on
financial policy and budget changes for 2016/2017 were held in September,
October, and November 2015.
15. In October 2015, the Finance and
Performance Committee agreed its preference to consult on the following
financial policy topics:
· the
quantum of the Uniform Annual General Charge
· the
share of the interim transport levy met by businesses and the basis on which it
is distributed among business ratepayers
· an
option to reallocate part of the rates from large farm/lifestyle properties
over all other ratepayers
· amendment
of the Māori Freehold Land rates remission and postponement policy.
16. During these workshops. staff
also provided information and analysis to assist understanding of the existing
budgets. This included:
· draft
three-year activity review programme
· six
year revenue and expenditure trends by council activity area
· social
and economic spend analysis
· grants
budgets for 2015/2016
· opportunities
to discuss aspects of this analysis with representatives from Arts, Culture and
Events (ACE), Auckland Tourism, Events and Economic Development (ATEED),
Auckland Transport (AT) and Governance.
Provision of the above information did not result in any
significant or material proposals to change budgets for 2016/2017.
17. In November 2015, the Finance and
Performance Committee received the two independent reports from Ernst &
Young (EY) and Cameron Partners on alternative sources of financing available
to Auckland Council. A further workshop was held on 24 February 2016, to
discuss options provided in these reports.
18. Local boards held a series of
meetings and workshops in October and November 2015, ahead of meetings in
December to adopt their content for consultation. This included key priorities
for 2016/2017 and a tailored two-page summary, by local board, that was
distributed to all households. Local boards discussed their advocacy priorities
with the Finance and Performance Committee on 27 and 30 November 2015.
19. In December 2015, the Tūpuna
Maunga Authority met to approve its budget for 2016/2017 and the Draft
Tūpuna Maunga Operational Plan was subsequently adopted by the Tūpuna
Maunga Authority.
20. On 10 December 2015, the Finance
and Performance Committee received the Mayoral proposal for consultation. This
set out a list of rating policy issues for consultation based on the
recommendations from the Finance and Performance Committee meetings in
preceding months. The Mayoral proposal also asked for staff to report back on a
proposal to trial an extension of the “retrofit your home” programme to
incorporate septic tank replacement.
21. On 17 December 2015, the
Governing Body agreed the following consultation topics for the Annual Budget
2016/2017:
· quantum
of the Uniform Annual General Charge over a range of options from $350 to $650
· an
option to increase the share of the Interim Transport Levy paid by businesses
and to share it among businesses on capital value rather than as a fixed charge
· an
option to reduce rates for large farm/lifestyle properties (over 50 hectares)
from 80 per cent of the urban residential rate to 60 per cent, with a small
increase to all residential rate payers and other farm/lifestyle ratepayers
(including a remission for small individual blocks being used as a single
combined property)
· changes
to remissions of rates on Māori land to address issues with how the land
is valued and restrictions on how it can be used
· pilot
of an on-site wastewater financial assistance programme to be repaid via a
voluntary targeted rate
· a
note that council will be further considering the options set out in the EY and
Cameron Partners reports on Alternative Sources of Financing
· draft
Tūpuna Maunga Operational Plan
· local
board priorities
· potential
capital programme changes.
22. On 10 February 2016, the
Governing Body adopted the consultation document, supporting material, and
agreed the approach to consultation.
Public consultation
23. The consultation document formed
the basis for public consultation and focused on the key potential changes for
2016/2017. More detailed information was also provided in supporting
information.
24. Public consultation ran between
15 February 2016 and 24 March 2016 – this extended consultation period provided
around four weeks for residents to respond to the household summary delivered
to letterboxes in the March edition of OurAuckland.
25. A public awareness raising
campaign ran from early February to mid-March 2016 to encourage participation.
This included the promotional material in the February edition of OurAuckland,
a household summary (including feedback form) in the March edition of
OurAuckland, advertisements in local and regional newspapers, online banner
advertisements, media releases, targeted stakeholder communications and social
media.
26. Three broad channels were used to
collect feedback to make it easy for Aucklanders to get involved. These were:
· written
submissions – this included a hard copy feedback form (distributed to Auckland
households as part of OurAuckland), an online feedback form and also any
emails, letters, pro forma or other written communications received
· in-person
– events were held across Auckland (largely in the evenings and weekends) to
provide an opportunity for Aucklanders to speak in person to elected members
and rates subject matter experts. Three events were specifically targeted
towards Māori with a focus on rating of Māori Freehold Land. One
event was also held for key stakeholders in a traditional hearing style with
all councillors invited to hear spoken feedback
· digital
– feedback was also collected through social media channels (Facebook and
Twitter) using #aklbudget.
Consideration of feedback
received
27. There were 3,321 written
submissions received (including 45 late submissions), providing around 22,684
feedback points. Of the submissions received:
· most
were written, with 75 per cent being provided using the feedback form (either
online, posted or emailed)
· online
submissions increased to 31 per cent (up from 25 per cent on the ten-year
Budget)
· 2,627
provided feedback on regional topics and 2,459 on local topics.
28. There were 426 attendees at 31
Have Your Say events, providing around 2,345 feedback points. All attendees
were also given the opportunity to provide a written submission. Have Your Say
and community events provided a qualitative source of feedback to consider
alongside the quantitative analysis of written feedback.
29. There were 35 pieces of feedback
received through digital channels (Twitter and Facebook).
30. A significant volume of feedback
was received in response to the rates-related questions on the feedback form.
Three other rates topics that did not have questions on the feedback form only
received a small volume of feedback. Feedback was also received on topics that
had not been consulted upon.
31. The following approach was used
to ensure decision-makers were well informed about feedback received:
· staff
with specific subject matter expertise reviewed feedback received relevant to
their areas of expertise and summarised the issues raised
· two
reports were prepared summarising feedback on regional matters and these were
discussed at the Finance and Performance Committee briefing 26 April 2016.
These reports did not contain analysis of the implications of the feedback
received as this was included in decision-making reports
· 21
reports were also prepared summarising the feedback for each local board area
and these were considered by each local board between 15 and 26 April 2016
· a
separate report was prepared summarising feedback received on the draft
Tūpuna Maunga Operational Plan. This was considered on 26 April 2016, when
joint deliberation was held between the Tūpuna Maunga o Tamaki Makaurau
Authority and the Governing Body.
32. In addition to the feedback
summary reports, all feedback received was made available to elected members
prior to the Finance and Performance Committee briefing on 26 April 2016. On 28
April, the feedback summary reports, along with all feedback received, were
made available to the public via the Auckland Council website.
33. On 9 May 2016, discussions were
held between local boards and the Finance and Performance Committee. These
discussions provided an opportunity for local board views and advocacy to be
considered ahead of decision making.
Decision making
34. On 2 May, (Hui 18) the
Tūpuna Maunga Authority approved the Tūpuna Maunga Operational Plan
2016/2017. Under delegation, the Chair and Deputy Chair of the Maunga Authority
subsequently approved the Summary of the Operational Plan 2016/2017 for
inclusion in the Annual Budget 2016/2017.
35. On 13 May 2016, the Finance and
Performance Committee recommended to the Governing Body the decisions required
to finalise the Annual Budget 2016/2017. The Governing Body subsequently agreed
these decisions. This included adoption of the Tūpuna Maunga Operational
Plan 2016/2017 and decisions required to finalise local board agreements.
36. Following decisions made by the
Governing Body on 13 May 2016, agreements were prepared for each local board
that reflected:
· the
impact of decisions made by the Governing Body on 13 May 2016
· re-prioritisation
decisions by local boards of locally driven initiative (discretionary) budgets
· the
allocation of central costs (including depreciation, interest, corporate
overheads and staff costs)
· minor
administrative adjustments, if any.
37. Local board business meetings
were held between 8 and 15 June 2016, where all 21 local boards adopted their
agreements for 2016/2017.
38. Two volumes (attachments A and B)
have been prepared that make up the Annual Budget 2016/2017 for adoption today,
these are:
· Volume
1 – Provides an overview of the key highlights and priorities for 2016/2017,
the prospective financial statements and funding impact statements for
2016/2017, and a summary of the Tūpuna Maunga Operational Plan 2016/2017
· Volume
2 – Includes the local board agreements and other local information, including
the Allocation of decision-making for non-regulatory activities.
The Annual Budget 2016/2017 includes capital expenditure of
$1.9 billion and operating expenditure of $3.7 billion. Legislative changes now
mean that less information is required in the annual budget document which has
subsequently reduced its size.
39. When preparing, consulting on and
making decisions on the Annual Budget 2016/2017, the council has followed a
thorough process, including considering:
· significance
or materiality of the differences to year two of the ten-year Budget
· extent
of the council’s resources
· usual
decision-making practices in the Local Government Act 2002 (Part 6)
· decisions
that are required for this annual budget
· financial
management requirements.
Staff have reviewed the processes outlined above and confirm
that council has complied with all legal requirements for adoption of the
annual budget today.
Consideration
Local
board views and implications
40. Local board agreements are
required to be adopted each year as part of the annual budget/ten-year budget.
These agreements set out priorities, budgets and intended level of service for
local activities, and the capital and operating expenditure required to fund
these activities.
41. Local boards have been involved
in developing the Annual Budget 2016/2017. Prior to making final decisions,
discussions were held between the Finance and Performance Committee and local
boards. On 13 May 2016, the Finance and Performance Committee was also provided
with a summary report and all resolutions on advocacy and regional issues
passed by local boards regarding decision making for the annual budget.
Māori
impact statement
42. Council has an important role in
enabling mana whenua and our Māori communities to fully contribute to and
benefit from Auckland becoming the world’s most liveable city. Activities that
contribute to this were identified in the ten-year Budget 2015-2025. Key
highlights since the adoption of the ten-year Budget 2015-2025, for each area
of spend are included in Part 2: Our Activities of Volume 1.
Implementation
43. The Local Government Act 2002
requires the council to adopt the Annual Budget 2016/2017 before 1 July 2016.
Adoption of the Annual Budget 2016/2017 is required before the council can set
rates for 2016/2017, which will be considered in a separate report following
adoption on today’s agenda.
44. Following adoption of the Annual
Budget 2016/2017 today, staff will prepare the final documentation for
distribution and also undertake activity to close the consultation loop with
Aucklanders. A digital version of the document will be available from council’s
website and printed copies will be available to view at libraries service
centres and local board offices. Copies will also be provided to the Secretary
for Local Government and the Auditor-General to meet legislative requirements
and to council’s trustee companies who oversee our debenture trust deed
requirements in New Zealand and other jurisdictions. Hard copies will also be
available on request.
45. An email will be sent to all
submitters or Have Your Say event attendees (who provided an email address)
advising them of the adoption of the Annual Budget 2016/2017. They will be
directed to the council website where they will find a summary of the decisions
made along with electronic copies of the document.
46. Local boards may also undertake
activity to close the loop at a local level as part of their ongoing programme
of engagement activity with local communities.
Attachments
|
No.
|
Title
|
Page
|
|
aView
|
Volume 1: Our Plan 2016/2017 (Under Separate Cover)
|
|
|
bView
|
Volume 2: Local Board information (Under Separate
Cover)
|
|
Signatories
|
Author
|
Aaron Matich - Programme Manager
|
|
Authorisers
|
Matthew Walker - GM Financial Strategy and Planning
Sue Tindal - Group Chief Financial Officer
Stephen Town - Chief Executive
|
|
Governing Body
30 June 2016
|
|
Rates setting 2016/2017
File No.: CP2016/12885
Purpose
1. To set the rates for 2016/2017
and to adopt amendments to the Māori land rates remission and postponement
policy and the Rates remission and postponement policy.
Executive
summary
2. This report contains the
recommendations necessary to set the rates for 2016/2017. Legislation requires
that rates are set by resolution of the council after the adoption of the
Annual Budget 2016/0217 (annual plan) and that they must be set in accordance
with the:
· Revenue
and Financing Policy in the ten-year Budget 2015-2025.
· Funding
Impact Statement in the Annual Budget 2016/2017.
3. The recommendations include the
following agreed rates related decisions for 2016/2017:
· an
average general rates increase of 2.4 per cent for existing ratepayers
· a
Uniform Annual General Charge (UAGC) of $394
· continuation
of the Interim Transport Levy (targeted rate) and the current farm/lifestyle
differential
· implementation
of decisions regarding Business Improvement District (BID) rates and the Rural
Franklin recycling targeted rate.
4. The average general rates
increase of 2.4 per cent translates to an average increase (general rates and
Interim Transport Levy combined) for residential and farm/lifestyle ratepayers
of 2.5 per cent and businesses of 1.9 per cent. Individual targeted rates have
been calculated to reflect the updated budgets for 2016/2017.
5. The recommendations in this
report also set the instalment dates, early payment discount, and penalties to
be applied for late payment for 2016/2017.
6. The report also recommends
adoption of the amendments to the Māori land rates remission and
postponement policy and associated amendments to the Rates remission and
postponement policy as agreed by the Governing Body on 13 May 2016.
|
Recommendation/s
That the Governing Body:
a) adopt the amended
Māori land rates remission and postponement policy and the amendments to
Rates remission and postponement policy in Attachment A to the agenda report.
b) resolve under the Local
Government (Rating) Act 2002 to set rates for the 2016/2017 financial year
and to authorise the addition of penalties as follows:
i) that a Uniform Annual
General Charge be set, for all rateable land, at $394 (including GST) per
separately used or inhabited part of a rating unit.
ii) that a general rate be set
for all rateable land based on the capital value of the land and at different
rates in the dollar for different categories of land as set out in the table
below:
|
Category
|
Rate in the dollar of capital value (including
GST)
|
|
Urban business
|
0.00693795
|
|
Urban residential
|
0.00253439
|
|
Rural business
|
0.00624415
|
|
Rural residential
|
0.00228095
|
|
Farm/lifestyle
|
0.00202751
|
|
No road access
|
0.00063360
|
|
Uninhabitable islands
|
0
|
iii) that a transport targeted
rate be set for all rateable land, except land in the Uninhabitable Islands
category, per separately used or inhabited part of a rating unit (SUIP) and
differentially for different categories of land, as follows:
|
Categories
|
Amount of rate per SUIP ($) (including GST)
|
|
Urban business and rural
business
|
182.85
|
|
Urban residential, rural
residential, farm/lifestyle and no road access
|
113.85
|
iv) that waste management targeted
rates be set differentially for different categories of land at different
fixed amounts, as set out in the table below:
|
Category
|
Type of waste
management targeted rate
|
Amount of rate
($ including GST)
|
Basis for charging
|
|
Rating units in the former Auckland City
|
Waste management – full service
|
232.72
|
Per available service
|
|
Waste management – where refuse opt out applies
|
99.81
|
Per available service
|
|
Waste management – where recycling opt out applies
|
160.36
|
Per available service
|
|
Waste management – where both refuse and recycling opt out
applies
|
27.45
|
Per available service
|
|
Waste management – additional recycling charge
|
72.36
|
Per service provided
|
|
Rating units in the former Franklin District where a service
is provided or available
|
Waste management – refuse collection
|
32.33
|
Per SUIP
|
|
Rating units in the former Franklin District where a service
is provided or available[1]
|
Waste management – recycling collection
|
72.36
|
Per SUIP
|
|
Rural rating units in the former Franklin District where a
service is provided or available from November 2016[2]
|
Waste management – recycling collection (part-year)
|
48.24
|
Per SUIP
|
|
Rating units in the former Manukau City where a service is
provided or available
|
Waste management
|
232.72
|
Per SUIP
|
|
Rating units in the former North Shore City and the former
Waitākere City where a service is provided or available
|
Waste management
|
91.49
|
Per SUIP
|
|
Rating units in the former Papakura District where a service
is provided or available
|
Waste management
|
104.69
|
Per SUIP
|
|
Rating units in the former Rodney District where a service
is provided or available
|
Waste management
|
106.51
|
Per SUIP
|
Note to table: For these
purposes the various waste services are as set out in the Auckland Waste
Management and Minimisation Plan.
v) that a city centre targeted
rate be set differentially for all rateable land in the urban business and
urban residential differential categories, as defined for the purposes of the
general rate, in the city centre area, of an amount of $0.00189405 (including
GST) per dollar of the capital value of the rating unit for urban business
rating units and of a fixed amount of $58.54 (including GST) per separately
used or inhabited part of a rating unit for urban residential rating units.
vi) that Business Improvement
District (BID) targeted rates be set for all rateable land in the business
differential categories, as defined for the purposes of the general rate,
within the defined Business Improvement District area, of a fixed amount per
rating unit and a rate in the dollar of capital value, as set out in the
table below:
|
BID area
|
Fixed amount
per rating unit ($) (including GST)
|
Rate in the dollar of capital value (including
GST)
|
|
Avondale
|
0.00
|
0.00145348
|
|
Birkenhead
|
0.00
|
0.00124071
|
|
Blockhouse Bay
|
0.00
|
0.00189800
|
|
Browns Bay
|
0.00
|
0.00065062
|
|
Devonport
|
250.00
|
0.00083762
|
|
Dominion Road
|
0.00
|
0.00083696
|
|
Ellerslie
|
0.00
|
0.00265433
|
|
Glen Eden
|
0.00
|
0.00129014
|
|
Glen Innes
|
0.00
|
0.00163569
|
|
Greater East Tamaki
|
195.00
|
0.00004342
|
|
Heart of the City
|
0.00
|
0.00058100
|
|
Howick
|
0.00
|
0.00115113
|
|
Hunters Corner
|
0.00
|
0.00097756
|
|
Karangahape Road
|
0.00
|
0.00065545
|
|
Kingsland
|
0.00
|
0.00059865
|
|
Mairangi Bay
|
250.00
|
0.00133539
|
|
Māngere Bridge
|
0.00
|
0.00188364
|
|
Māngere East Village
|
0.00
|
0.00039300
|
|
Māngere Town
|
0.00
|
0.00516632
|
|
Manukau Central
|
0.00
|
0.00053787
|
|
Manurewa
|
0.00
|
0.00120568
|
|
Milford
|
0.00
|
0.00089400
|
|
Mt Eden Village
|
0.00
|
0.00080328
|
|
New Lynn
|
0.00
|
0.00067081
|
|
Newmarket
|
0.00
|
0.00089729
|
|
North Harbour
|
150.00
|
0.00011580
|
|
North West District
|
250.00
|
0.00033089
|
|
Northcote
|
0.00
|
0.00348423
|
|
Old Papatoetoe
|
0.00
|
0.00191715
|
|
Onehunga
|
0.00
|
0.00166822
|
|
Orewa
|
0.00
|
0.00110834
|
|
Ōtāhuhu
|
0.00
|
0.00101654
|
|
Ōtara
|
0.00
|
0.00159309
|
|
Panmure
|
0.00
|
0.00212543
|
|
Papakura
|
0.00
|
0.00087408
|
|
Parnell
|
0.00
|
0.00069001
|
|
Ponsonby
|
0.00
|
0.00073593
|
|
Pukekohe
|
0.00
|
0.00061541
|
|
Remuera
|
0.00
|
0.00147577
|
|
Rosebank
|
0.00
|
0.00047608
|
|
South Harbour
|
0.00
|
0.00059146
|
|
St Heliers
|
0.00
|
0.00143481
|
|
Takapuna
|
0.00
|
0.00048645
|
|
Te Atatu
|
0.00
|
0.00181102
|
|
Torbay
|
0.00
|
0.00101267
|
|
Uptown
|
0.00
|
0.00020349
|
|
Waiuku
|
0.00
|
0.00113461
|
|
Wiri
|
0.00
|
0.00048007
|
vii) that the Ōtara-Papatoetoe
and Māngere-Ōtāhuhu swimming pool targeted rates be set for
all rateable land in the residential differential categories, as defined for
the purposes of the general rate, located in the respective
Māngere–Ōtāhuhu Local Board and Ōtara-Papatoetoe Local
Board areas, as set out in the table below:
|
Local board area
|
Fixed amount per SUIP ($) (including GST)
|
|
Māngere–Ōtāhuhu
|
30.86
|
|
Ōtara-Papatoetoe
|
28.97
|
viii) that the Riverhaven
Drive targeted rate be set on land in Riverhaven Drive, Rodney, in respect of
which the council has provided financial assistance for the construction of a
road that gives access to the properties, of an amount of $10,317.02
(including GST) per rating unit
ix) that the Glorit flood gate
restoration targeted rate be set at an amount of $166.0784 (including GST)
per hectare of land in the three properties below benefiting from the
facility (as assessed by the council), as follows:
|
Valuation number
|
Legal description
(abbreviated)
|
Area of benefit (Ha)
|
Amount of rate ($) (including GST)
|
|
00910-00102
|
Sec 27 SO 59120
|
245
|
40,689.21
|
|
00910-00502
|
Lot 5 DP 127940
|
2
|
332.15
|
|
00910-00400
|
Lot 3 DP 485231
|
17.5
|
2,906.37
|
x) that the Waitakere rural
sewerage targeted rate be set for all land in the district of the former
Waitakere City Council which has an on-site waste management system and in
respect of which the council has available the service of pumping out the
system and which is scheduled to take place within the three-year period
commencing 1 July 2016, of an amount of $188.46 (including GST) for each such
on-site waste management system.
xi) that the Retro-fit Your
Home targeted rate be set on land in respect of which the council has
provided financial assistance under the Retro-fit your home scheme, at
different levels for each year that the ratepayer has started repaying the
financial assistance by this targeted rate, of an amount set out in the table
below:
|
Year of repayment
|
Rate in the dollar of value outstanding as at 1
July 2016 (including GST)
|
|
1
|
0.14824703
|
|
2
|
0.16189566
|
|
3
|
0.17954399
|
|
4
|
0.20319261
|
|
5
|
0.23644248
|
xii) that the Kumeu Huapai
Riverhead Wastewater targeted rate be set on land in respect of which the
council has provided financial assistance to connect to the Kumeu Huapai
Riverhead pressurised wastewater scheme, at different levels for each year
that the ratepayer has started repaying the financial assistance by this
targeted rate, of an amount set out in the table below:
|
Year of repayment
|
Rate in the dollar of value outstanding as at 1
July 2016 (including GST)
|
|
1
|
0.12136053
|
|
2
|
0.12648574
|
|
4
|
0.13948996
|
xiii) that the Point Wells
Wastewater targeted rate be set on land in respect of which the council has
provided financial assistance to connect to a pressure wastewater collection
system in Point Wells, of an amount per separately used or inhabited part of
a rating unit based on the extent of the financial assistance as shown in the
following table:
|
Total assistance provided
|
Amount of fixed rate ($) (including GST)
|
|
$ 8,000
|
674.60
|
|
$ 8,500
|
716.76
|
|
$ 9,000
|
758.92
|
|
$ 9,500
|
801.08
|
|
$10,000
|
843.25
|
xiv) that the Jackson Crescent
Wastewater targeted rate be set on land in respect of which the council has
provided financial assistance to connect to a wastewater collection scheme in
the Jackson Crescent, Martins Bay areas, of an amount of $608.88 (including
GST) per rating unit.
xv) that for the purposes of the
above rates, the definitions of the differential categories, former rural
Franklin District, the city centre area, the various Business Improvement
Districts and the expression "separately used or inhabited part of a
rating unit" are as set out in the Funding Impact Statement in the
council's Annual Plan 2016/2017.
xvi) that in 2016/2017, the rates be
due in four equal instalments, as set out in the table below:
|
Instalment
|
Due Date
|
|
1
|
31 August 2016
|
|
2
|
28 November 2016
|
|
3
|
28 February 2017
|
|
4
|
29 May 2017
|
xvii) that a penalty of ten per cent
will be added to so much of any instalment of rates assessed in the 2016/2017
rating year that remains unpaid on the day after the due date.
xviii) that further penalties of ten
per cent will be added to rates assessed in previous financial years that are
unpaid on 8 July 2016; and then again on 8 January 2017.
xix) That the discount for the early
payment of rates be set at 0.91 per cent of the 2016/2017 rates, if those
rates, together with any outstanding prior years’ rates and penalties, are
paid in full on or before the due date of the first instalment (31 August
2016).
|
Comments
Background
7. At its meeting on 13 May 2016,
the Governing Body agreed the Finance and Performance Committee recommendations
regarding rates policy issues for inclusion in the Annual Budget 2016/2017.
These included:
· Uniform
Annual General Charge (UAGC) of $394
· continuation
of the Interim Transport Levy (ITL) and farm/lifestyle general rate
differential in their current form
· pilot
scheme for septic tank upgrades to be funded from a targeted rate to apply from
2017/2018
· targeted
rate to fund a kerbside recycling service in rural Franklin
· BID
expansions in North Harbour, Glen Eden and Browns Bay
· amendments
to the Māori land rates remission and postponement policy and associated
amendments to the Rates remission and postponement policy.
8. The council is required to have
a Māori freehold land rates remission and postponement policy. The policy
is called the Māori land rates remissions and postponement policy as it
covers some land in several different forms of Māori ownership.
9. The average general rates
increase of 2.4 per cent translates to an average rates increase (general rates
and Interim Transport Levy combined) for residential and farm/lifestyle
ratepayers of 2.5 per cent and businesses 1.9 per cent. The average increase
for business is slightly higher than originally estimated as growth in the
business sector has been lower than that in the non-business sector.
10. Because the transition to one
rating system is complete and because the council is making no change to the
UAGC, the ITL and the general rate differentials, most ratepayers will
experience rates increases that are very close to the sector averages outlined
above.
11. There are some exceptions for
Franklin business ratepayers who are still transitioning to a new rating
policy, properties with new additions or extensions, and any specific
properties affected by a new or changed targeted rate. The council is also
reducing the proportion of rates collected from businesses in equal steps from
32.7 per cent to 25.8 per cent by 2036/2037. This means that residential and
farm/lifestyle ratepayers will have slightly higher rates increases each year.
Decision-Making
Rates resolution
12. For the council to assess rates
for the 2016/2017 financial period, section 23 of the Local Government (Rating)
Act 2002 (LG(R)A) requires the council to set the rates by resolution. The
resolutions contained in this report are consistent with the relevant
legislation and the Annual Budget 2016/2017.
13. The budget is set based on the
assumption that rates will be invoiced on time. A delay in setting the rates
may cause issues in delivery of the rates assessment/invoice in time for the
first instalment due date. It will also cause delays to when the arrears
penalty can be applied. Delaying the setting of rates may result in increased
administrative costs to the council.
14. A copy of the rates resolution
will be sent to the Secretary of Local Government within 20 working days of
adopting the rates resolution.
15. The LG(R)A requires that the
instalment due dates must also be set in the same resolution as those used to
set the rates. The resolutions necessary for the Governing Body to set the
rates and instalment due dates for the 2016/2017 financial period are included
in the recommendations in this report.
Business Improvement District
targeted rates
16. The council uses targeted rates
to fund Business Improvement District (BID) programmes where businesses have
agreed to work together, with the support of the council to improve their
business environment.
17. Consultation on the Annual Budget
2016/2017 included possible extensions to the existing BID programmes in Glen
Eden, North Harbour and Browns Bay BID boundaries. Successful ballots for the
extension of the Glen Eden, North Harbour and Browns Bay were undertaken in
April 2016.
18. The resolutions necessary for the
Governing Body to set the BID rates for 2016/2017 are included in
recommendations of this report.
Septic tank upgrade targeted
rate
19. Consultation was undertaken on a
pilot scheme to offer financial assistance for septic tank upgrades in the West
Coast lagoons and on Waiheke Island to be repaid via a targeted rate. The rate
will be implemented for the 2017/2018 year for those property owners who take
up the offer during 2016/2017.
Early payment discount, late
payment penalties and instalment dates
20. This report recommends that the
rates be payable in four equal instalments on:
· instalment
1: 31 August 2016
· instalment
2: 28 November 2016
· instalment
3: 28 February 2017
· instalment
4: 29 May 2017.
These dates are adjusted from those in the ten-year Budget
2015-2025 to ensure they remain on a week day and provide the rates team
sufficient time to produce the rates notices. Ratepayers can pay more
regularly if they wish.
21. Staff recommend that a ten per
cent penalty be payable for late payment of rates for each rates instalment due
date, and that a ten per cent penalty on the previous years’ rates arrears be
added at the beginning of the financial year (or five working days after the
rates resolution, whichever is the later) and then again six months later. It
is necessary to set the penalty rate at ten per cent, as used by all the
previous councils, to discourage the use of the council as a bank by
ratepayers. Costs incurred by the council from the late payment of rates must
inevitably be met by those ratepayers that pay on time. Most councils use a
ten per cent penalty. This is consistent with the current policy.
22. The early payment discount policy
is available to ratepayers who pay their full year’s rates before the due date
of the first rates instalment. Under this policy, the council provides a
discount based on the council’s forecast short term borrowing cost, 2.45 per
cent for 2016/2017. This passes on council’s interest cost saving to those
ratepayers who pay early. For the early payment discount to remain cost neutral
to the early payment discount rate should be set at 0.91 per cent.
23. The resolutions necessary for the
Governing Body to set the early payment discount, late payment penalty, and
instalment dates are included in the recommendations of this report.
Consideration
Local
board views and implications
24. The Governing Body has
decision-making authority for setting rates.
25. Local boards’ views on the rating
policy proposals were considered alongside feedback from consultation on the
Annual Budget 2016/2017 in May 2016.
Māori
impact statement
26. The council does not hold
information on the ethnicity of ratepayers, so is not able to identify the
exact impact of the policy options on Māori. The rates recommendations in
this report will have a similar impact on Māori as it will on other
ratepayers.
27. The impact on Māori of
changing the Māori land rates remission and postponement policy was
discussed in staff advice attached to the Mayoral Proposal (Attachment B: Rates
related policies) that was considered by the Finance and Performance Committee
on 13 May. A targeted engagement process was undertaken to support engagement
with Māori and Māori land owners as part of consultation on the
Annual Budget 2016/2017.
28. The Māori land rates
remission and postponement policy recognises that Māori land often has significant
barriers to development and use. The agreed changes to the policy acknowledge
the barriers and seek to reduce the burden of rates on Māori land owners
accordingly.
Implementation
29. There are no implementation
issues. The recommendations in this report have been checked by the legal
department for legislative compliance.
Attachments
|
No.
|
Title
|
Page
|
|
aView
|
Māori land rates remission and postponement
policy
|
27
|
|
bView
|
Amendments to the rates remission and postponement
policy
|
31
|
Signatories
|
Authors
|
Eric Wen – Advisor Financial Policy
Andrew Duncan – Manager Financial Policy
|
|
Authorisers
|
Matthew Walker - GM Financial Strategy and Planning
Sue Tindal - Group Chief Financial Officer
Stephen Town - Chief Executive
|
