Agenda of Finance and Performance Committee

Finance and Performance Committee

09 August 2016

Disposals Recommendation Report

File No.: CP2016/14541

Purpose

1. This report seeks approval to sell five non-service council owned properties that Panuku Development Auckland (Panuku) considers suitable for sale.

Executive summary

2. Panuku is required to identify properties from within council’s portfolio that may be suitable for potential sale to a combined value of $45 million by 30 June 2017. Capital receipts from the sale of surplus properties contributes to the Auckland Plan outcomes and the Long-term Plan 2015-2025 by providing the council with an efficient use of capital and prioritisation of funds to achieve its activities and projects.

3. The first and second properties presented in this report, 27 and 37 Tobin Street, Pukekohe are residual parcels of land derived from larger properties that were acquired for roading purposes. The rationalisation process for these two sites commenced in August 2015. Consultation with council and its CCOs, iwi authorities and the Franklin Local Board has now taken place. No alternative service uses have been identified for these sites through the rationalisation process. The iwi feedback received has been supportive of the proposed divestment of these sites. The Franklin Local Board are opposed to the proposed disposal of these sites on the basis that they were intended to provide a green space in an urban environment. The Parks Sports and Recreation (PSR) department, which previously held these sites in its portfolio, reviewed these sites and found that they were not of a suitable size and typology to provide a recreational function. As no alternative service uses have been identified for these sites, we recommend divestment of these sites. Site specific detail, including information and feedback gathered through the rationalisation process is contained in Attachment A of this report.

4. The third property presented in this report, 2 Forrest Hill Road, Forrest Hill, is a flat, vacant, residential site that was acquired in 2005 for the Wairau-Taharoto Corridor upgrade and road widening. This work has now been completed. The rationalisation process for this site commenced in December 2015. Consultation with council and CCOs, iwi authorities, and the Devonport-Takapuna Local Board has now taken place. No alternative service uses have been identified for this property through the rationalisation process. The Devonport-Takapuna Local Board has endorsed the proposed divestment of this site, but “subject to alternative open space acquisitions in this area being identified”. Panuku can undertake such an open space acquisition, but only under instruction by council. As no alternative service uses have been identified for this site, Panuku recommends it be divested. Site specific detail, including information and feedback gathered through the rationalisation process is contained in Attachment B of this report.

5. The fourth property presented in this report, 16A Glynnbrooke Street, Te Atatu South is a vacant, residential site that was previously road reserve. The rationalisation process for this site commenced in December 2015. Consultation with council and its CCOs, Iwi authorities and the Henderson-Massey Local Board has now taken place. No alternative service uses have been identified for this site through the rationalisation process and the feedback received has been supportive of the proposed divestment of this site. Due to this, Panuku recommends this site be divested. Site specific detail, including information and feedback gathered through the rationalisation process is contained in Attachment C of this report.

6. The fifth property presented in this report, Section 2 SO 66840, 270 Flanagan Road, Drury (aka adj 95 Tegal Road) is a small piece of land that is adjacent to the Tegal Foods Limited (Tegal) plant located at 95 Tegal Road. Tegal is encroached on the subject parcel of land and have enquired with council about acquiring it to remediate the encroachment issues. The rationalisation process for this parcel of land commenced in December 2014. Consultation with council and its CCOs, iwi authorities and the Franklin Local Board has now taken place. No alternative service uses have been identified for this property through the rationalisation process and the feedback received has been supportive of the proposed divestment of this site. Due to this, Panuku recommends divestment of this site. Site specific detail, including information and feedback gathered through the rationalisation process is contained in Attachment D of this report.

Recommendation/s

That the Finance and Performance Committee:

a) approve, subject to the satisfactory conclusion of any required statutory processes, the disposal of the land at:

i) 27 Tobin Street, Pukekohe comprised of an estate in fee simple more or less being Lot 1 DP 134911 comprising approximately 363m²contained in certificate of title NA79C/588;

ii) 37 Tobin Street, Pukekohe comprised of an estate in fee simple more or less being Lot 1 DP 117297 comprising approximately 615m²contained in certificate of title NA66C/942;

iii) 2 Forrest Hill Road, Forrest Hill, being an estate in fee simple comprising approximately 650m² more or less being Section 1 SO Plan 484419 contained in computer freehold register 701352;

iv) 16A Glynnbrooke Street, Te Atatu South comprised of an estate in fee simple more or less being Lot 49 DP 64924 comprising approximately 1,280m²contained in certificate of title NA70A/286; and

v) part of 270 Flanagan Road, Drury comprised of an estate in fee simple more or less being Section 2 SO 66840 comprising approximately 506m²(subject to survey) contained in certificate of title NA95C/66.

b) agree that final terms and conditions be approved under the appropriate delegations.

Comments

7. Panuku and the Auckland Council’s Land Advisory Services team work collaboratively on a comprehensive review process to identify properties in the council portfolio that may be suitable to sell. Once identified as a potential sale candidate Panuku takes the property through a multi stage engagement process.

8. The first phase of the process involves engagement with all council departments and relevant CCOs. The engagement establishes whether a property is needed for a future funded project or whether it must be retained for a clear strategic purpose. This is determined by an expression of interest (EOI) process whereby officers can request that all or part of a property is retained. Alternatively officers may request that the property be encumbered or covenanted as part of the disposal process. If the EOI sets out a robust financial analysis and evidence based rationale to retain the properties, then the EOI is endorsed.

9. If however the reasoning is more subjective a thorough business case is required. An inter-disciplinary steering group comprised of senior managers meets to assess the business cases. This provides an opportunity for properties to be considered in a cohesive and integrated manner by relevant council departments and CCOs.

10. The Heritage Unit is invited prior to the EOI process to flag any sites of particular archaeological merit that need to be assessed further. Panuku also engages with the Closed Landfills and Contaminated Land Response team prior to the EOI process commencing to ensure any possible contamination issues that may be associated with a property are identified.

11. Once a property has been internally cleared of any service requirements, Panuku then consults with Local Boards, Mana Whenua and Ward Councillors.

12. All sale recommendations must be approved by the Panuku board before a final recommendation is made to the governing body.

Consideration

Local board views and implications

13. Local boards are informed of the commencement of the rationalisation process for specific properties. Following the close of the EOI period, relevant local boards are engaged with. Panuku attend workshops with the relevant local board and provide information about properties being rationalised in its local board area. A report is subsequently prepared for the local board business meeting so that its views can be formalised.

14. If a local board wishes to retain a site, its views are considered by Panuku and if necessary referred to relevant council departments for consideration. The local board may be asked to prepare a business case which sets out the service need that will be met by retaining the site, along with how the service use will be funded. Panuku and relevant council departments or CCOs work with local boards in preparing the business case. The business case is then considered by the cross council steering group. If the business case is accepted and funding is identified, the property is transferred back to the service portfolio. If the business case is not accepted, the business case is included in the report to the governing body for a political decision.

15. The views of the relevant local boards about the subject sites are contained in Attachments A to D of this report.

Māori impact statement

16. The importance of effective communication and engagement with Māori on the subject of land is understood. Panuku has a robust form of engagement with mana whenua groups across the region. Each relevant mana whenua group is contacted independently by email based on a contact list which is regularly updated. Each group is provided general property details, including a property map, and requested to give feedback within 15 working days. Contacts are sent reminder notices a week out from the due date, and alerted of the passing of the due date in the week following if no feedback has been submitted. Confirmation of any interest expressed is sent in writing and recorded for inclusion in the disposal recommendation report. A feedback spreadsheet is provided to facilitate responses. Any requests for extensions of a due date are handled on a case by case basis.

17. Panuku’s engagement directs mana whenua to respond with any issues of particular cultural significance the group would like to formally express in relation to the subject properties. We also request express notes regarding any preferred outcomes that the group would like us to consider as part of any disposal process.

18. From discussions with our Māori and Strategy Relations team we are developing an understanding of what could amount to a ‘matter of significant cultural relevance’ to Iwi. We are also developing a range of reasonable outcomes that could be employed when such a matter of cultural significance is raised in relation to a potential disposal property. Possible outcomes could include commemoration or physical acknowledgment in the form of plaques or other mutually agreed means of recognition. In the event of any issues of particular cultural significance being raised, Panuku will work with the relevant council departments to assess the merits of any such requests and keeps the interested parties informed along the way.

19. Mana whenua groups are also invited to express potential commercial interest in any sites and are put in contact with Panuku’s Development team for preliminary discussions if appropriate to the property. This facilitates the groups’ early assessment of the merits of a development opportunity to their Iwi. In the event a property is approved for sale all groups are alerted of the decision, and all groups are alerted once a property comes on the market.

Implementation

20. As part of the overall review process each property is also legally assessed to see if there are any impediments to sell or if there is a prescribed legal way in which it must be sold. The last stage of the process is triggered once a resolution to sell is obtained. This involves a robust ‘add value’ assessment as part of the development of the final sales strategy. There is specific attention applied to the possible suitability of the site for housing purposes.

Attachments

No.	Title	Page
a View	27 and 37 Tobin Street, Pukekohe property information	15
b View	2 Forrest Hill Road, Forrest Hill property information	21
c View	16A Glynnbrooke Street, Te Atatu South	25
d View	Section 2 SO 66840, 270 Flanagan Road, Drury	29

Signatories

Author

Letitia McColl - Team Leader Portfolio Review, Portfolio Strategy, Strategy and Engagement, Panuku Development Auckland

Authorisers

Marian Webb – Manager Portfolio Strategy, Strategy and Engagement, Panuku Development Auckland

David Rankin – Director, Strategy and Engagement, Panuku Development Auckland

Sue Tindal - Group Chief Financial Officer

Finance and Performance Committee

09 August 2016

Closure of walkway and disposal of land at Hooper Avenue, Pukekohe

File No.: CP2016/16389

Purpose

1. To seek the Finance and Performance Committee’s approval for Panuku Development Auckland (Panuku) to dispose of the walkway land at Hooper Avenue, Pukekohe to the adjoining owners, subject to the satisfactory conclusion of any required statutory processes.

Executive summary

2. In August 2010, the Franklin District Council (FDC) resolved that the Hooper Avenue walkway should be closed for reasons of public safety.

3. No formal decision was made to sell the land due to the impending amalgamation of the legacy councils and the anticipated time to complete the required statutory processes. Auckland Transport approved the commencement of the road stopping process and sale of this land to the adjoining owners in August 2012.

4. Following the issue of a s48(2) Local Government Auckland Council Act notice to grant approval to dispose of the road land, Auckland Council Property Limited (now Panuku) was briefed to secure conditional agreements for both parcels with the adjoining owners. These agreements were put in place in February 2014 and now require an extension of time. Both proposed purchasers have agreed to this.

5. In June 2015 the reserve revocation was completed. Notification of the road stopping process resulted in one objection being received. This objection has not been withdrawn despite lengthy negotiations and mitigation works. The process provides for an objection to be upheld or dismissed by the Environment Court. Auckland Transport is currently considering whether to pursue this course of action.

6. On 28 June 2016 the Franklin Local Board reconfirmed its agreement that the walkway land be sold to the adjoining owners upon completion of the road stopping process, noting that this may require resolution through the Environment Court.

7. Panuku now seeks a resolution from the Finance and Performance Committee to approve the disposal of the walkway land.

Recommendation/s

That the Finance and Performance Committee:

a) approve, subject to the satisfactory conclusion of any required statutory processes, the disposal of part of the walkway land at Hooper Avenue, Pukekohe being Lot 1 DP 113049 comprising 88 m² more or less, to the adjoining owners.

b) approve, subject to the satisfactory conclusion of the road stopping process, the disposal of part of the walkway land at Hooper Avenue, Pukekohe, being Section 1 SO Plan 483032, comprising 65 m² more or less, to the adjoining owners.

c) agree that final terms and conditions be approved under the appropriate delegations.

Comments

8. The subject walkway comprises two parcels of land; Section 1 SO Plan 483032, being 65 m² vested as road and accessed from Hooper Avenue and Lot 1 DP 113049, being 88 m² of local purpose reserve (accessway, now revoked) and accessed from Montgomery Avenue.

9. The Hooper Avenue walkway has long been recognised as being poorly designed with a dog leg in the middle which prevents a line of sight from one end to the other. It has failed a Crime Prevention Through Environmental Design audit and is considered to pose a risk to public safety.

10. The walkway continues to be the location of anti-social and delinquent behaviour. The Pukekohe Police have provided data on reported incidents at the walkway or its immediate surrounds over the previous 12 months. This data shows 38 reported incidents including burglaries, wilful damage, theft, breach of the peace, drunkenness, intimidation/threats, person acting suspiciously and trespass.

11. The Franklin District Council resolved on 23 August 2010 to close the Hooper Avenue walkway for public use, for the reserve revocation process to be undertaken and for future options for the land to be reported to the incoming Franklin Local Board.

12. In August 2012, the Auckland Transport Board resolved to commence the road stopping process and dispose of the road land to the adjoining owners. In October 2012 Auckland Transport issued a s.48 (2) Local Government Auckland Council Act to grant approval to dispose of the land.

13. In response to this notice, Auckland Council issued a brief in November 2012 to Auckland Council Property Limited to negotiate conditional sale agreements with the adjoining owners subject to statutory processes being completed and council approval being obtained.

14. In February 2014 Auckland Council Property Limited secured conditional sale agreements with two of the adjoining owners subject to reserve and road stopping processes being completed and obtaining council approval. These agreements included a two year expiry clause and lapsed in February 2016. Both proposed purchasers have recently confirmed in writing their continued commitment to purchasing the land. They will be provided a variation of agreement to sign, extending the time period for a further two years.

15. The reserve revocation process was completed in 2015 with no objections being received.

16. On 13 April 2015, an objection was received during the public consultation phase of the road stopping process. This stated that the walkway was used; that an alternative route to the town centre (on Helvetia Road) was missing a section of footpath and was a busy road needing to be crossed twice to follow the current footpath network, and that owners who bought next to an existing walkway should not complain about it.

17. The Franklin Local Board and Panuku have worked with the objector to the road stopping, to address their concerns and seek a withdrawal of their objection. To this end, council recently completed a section of footpath along Princes Street to provide a safe alternative route to the walkway. Post completion of these works, the objector advised they still do not wish to withdraw their objection.

18. Resolution of the road stopping objection will likely require an application to the Environment Court. This process could incur substantial costs for the council, and Auckland Transport is considering whether to take this rare course of action. Most road stopping applications are for the benefit of an adjoining owner. However, in this case there are community outcomes, supported by the Franklin Local Board, which may justify this action.

19. The potential exists to effectively close the walkway by sale of the Montgomery Avenue parcel (Lot 1 DP 113049) to the adjoining owners. If the road stopping process was not completed, the road section of the walkway would remain in place as a dead end path (some 32.5m long) with a clear line of site from Hooper Avenue. The road stopping process can be reinitiated post the two year prohibition required by the Local Government Act 1974.

Consideration

Local board views and implications

20. In June 2016, the Franklin Local Board confirmed its previous resolution to close the walkway and dispose of the land, subject to the completion of the reserve revocation and road stopping processes, to the adjoining owners. It noted that resolving the road stopping process may now require Environment Court action.

Māori impact statement

21. 12 mana whenua iwi authorities were contacted regarding the potential sale of Hooper Ave Walkway on 24June 2016. The following feedback was received; noting that some feedback received is commercially sensitive and cannot be included in this report:

a) Te Kawerau a Maki

d) No feedback was received for this site.

b) Ngāi Tai ki Tamaki

e) Ngāi Tai ki Tāmaki has drawn attention to their recent settlement and signalled an increased interest in council owned property that may come available for sale in their rohe.

c) Ngāti Tamaoho

f) No feedback was received for this site.

d) Te ākitai - Waiohua

g) No feedback was received for this site.

e) Ngāti Te Ata – Waiohua

h) Ngāti Te Ata has confirmed general cultural interest in this property, and expressed an interest in discussing potential purchase of any council properties that may come available for sale.

f) Te Ahiwaru

i) No feedback was received for this site.

g) Ngāti Paoa

j) Ngāti Paoa has reinforced their desire to be kept in the loop for property disposals.

h) Ngaati Whanaunga

k) No feedback was received for this site.

i) Ngāti Maru

l) No feedback received for this site.

j) Ngāti Tamatera

m) No feedback received for this site.

k) Te Patukirikiri

n) No feedback was received for this site.

l) Waikato-Tainui

o) No feedback was received for this site.

Technical Considerations

22. In accordance with Schedule 10 (5) of the Local Government Act 1974, the council may apply to the Environment Court to rule whether the objection received during the consultation for the road stopping should stand or confirm the council’s decision to close the road.

Implementation

23. If the committee resolves to approve the proposed disposal, Panuku will proceed with the disposal of Lot 1 DP 113049, which would effectively close the walkway without the need to complete the road stopping process.

24. If the objection to the road stopping of Section 1 SO Plan 483032 remains in place, the road stopping process will be initiated again post the two years stipulated by the Local Government Act 1974. If no objections are received to this repeated process, and the governing body approves the proposed disposal, then Section 1 SO Plan 483032 will also be sold to the adjoining owners.

Attachments

No.	Title	Page
a View	Diagram of Hooper Avenue walkway	37
b View	Hooper Avenue walkway photos	39
c View	Princes Street footpath work	43

Signatories

Author

Linda Holdaway - Senior Property Acquisitions and Disposals Advisor, Portfolio Management Directorate, Panuku Development Auckland

Authorisers

Nigel Hewitson - Manager Disposals, Portfolio Management Directorate, Panuku Development Auckland

Ian Wheeler – Director Portfolio Management, Panuku Development Auckland

Sue Tindal - Group Chief Financial Officer

Finance and Performance Committee

09 August 2016

Auckland Council Performance Report for the period 1 July 2015 to 30 June 2016

File No.: CP2016/14317

Purpose

1. This report provides an overview of the Auckland Council parent performance results for the period 1 July 2015 to 30 June 2016.

Executive Summary

2. The performance results presented in this report are for the Auckland Council parent, not the group. The group financial results will be presented to the Finance and Performance Committee at the September meeting.

3. The external audit by Audit NZ is currently underway and the results presented here are interim unaudited results.

4. The unaudited group financial results are due to be released to the securities exchanges on 29 August 2016. The chairperson and deputy chairperson of the Finance and Performance Committee have delegated authority to approve these for release.

5. The Annual Report 2015/2016 for the group is currently being prepared and will be presented to the Audit and Risk Committee, the Finance and Performance Committee and the Governing Body during September 2016. The audit opinion will be signed and released by the Auditor-General following approval by the Governing Body.

Highlights and achievements

6. The report includes an overview of the highlights and achievements in areas that are key for achieving organisational objectives. There is a range of significant highlights and achievements across the year, which includes the following items in the last quarter.

· The council's Integrated Bylaws Review and Implementation programme won the Prime Minister's Award at the Institute of Public Administration New Zealand Public Sector Excellence Awards 2016.

· New 240L bins were delivered to 210,000 households in the Rodney, North Shore and Waitākere areas. This is the largest rollout of recycle bins ever in Australasia.

· A grove of nine pōhutukawa and tōtara trees were planted on the summit of Maungakiekie-One Tree Hill at a public dawn ceremony held by the Maunga Authority.

· Youth Connections hosted a successful JobFest, with 75 employers and over 2000 young people attending. One month on, 50 youth had been employed as a result of JobFest.

Performance measure results

7. The year-end results show that 58 per cent of the targets were achieved, 6 per cent substantially achieved and 33 per cent not achieved.

8. A number of performance measures in the regulatory services area did not achieve the targets set. The activity volumes for these service areas have increased significantly since last year, which has impacted on service delivery (e.g. lodged building consents and building inspection volumes up 13 per cent).

9. The report includes trend information about the performance results together with commentary for specific measures.

10. The Internal Audit department has been working with business units and systematically reviewing and testing underlying business processes that produce the information used to report against the performance measures. No significant unresolved issues remain from the review work completed to date.

Financial performance results

11. The financial performance results provide an indication of how the organisation is performing against the budget, and associated financial risks. The year-end net operating financial results were on track compared to budget, with a $5 million favourable variance to budget.

12. Capital delivery performance was largely on track for the year, with $413 million capital expenditure completed, representing 74 per cent of the $556 million budget for the year. Project delays occurred across some areas including commercial property, community facilities and corporate property. At year-end there was $8.9 million remaining in the Central Risk Fund (centralised repository on contingency budgets) that had not been utilised, which is effectively savings achieved for the year.

13. Treasury management performance is also included in the report. Total net debt of $6.9 billion aligns to Long-term Plan (LTP) projections. In addition the average funding costs of debt were in line with the budgeted levels.

14. The report also includes additional information relating to a number of areas including details on the number and costs of official information requests as requested at a previous Committee meeting.

Recommendation/s

That the Finance and Performance Committee:

a) receive the Auckland Council Performance report for the period 1 July 2015 to 30 June 2016.

Comments

15. The performance results presented in this report are for the Auckland Council parent, not the group. The group financial results will be presented to the Finance and Performance Committee at the September meeting.

16. The external audit by Audit NZ is currently underway and the results presented here are interim unaudited results.

17. The unaudited group financial results are due to be released to the securities exchanges on 29 August 2016. The chairperson and deputy chairperson of the Finance and Performance Committee have delegated authority to approve these for release.

18. The Annual Report for the group is currently being prepared and will be presented to the Audit and Risk Committee, the Finance and Performance Committee and the Governing Body during September. The audit opinion will be signed and released by the Auditor-General following approval by the Governing Body.

Highlights and achievements

19. Key highlights and achievements over the year are summarised below, followed by further information about the fourth quarter key highlights and achievements. These are sorted by the service delivery themes as expressed in the LTP.

Key performance highlights and achievements across the year

Auckland development

20. The last tranche of Special Housing Areas (SHAs) was gazetted on 19 May 2016, bringing the total number of SHAs declared in 10 tranches to 154. The potential final yield of the SHAs is estimated at over 62,000 dwellings.

21. The central government confirmed its funding commitment to the City Rail Link, which will allow the main works to begin in 2018.

22. Auckland became a member of the C40 Cities Climate Leadership Group. C40 Cities is a group of 83 global megacities (including London, New York, Los Angeles, Seoul, Tokyo, and Rio) committed to tackling climate change mitigation by sharing best practice, data, technical resources and innovation ideas.

23. We surveyed over 90,000 buildings for heritage values and identified about 33,000 that have some form of heritage value that warrants either protection or further investigation.

24. 152 new Māori sites of significance have been identified for assessment with 12 iwi. We reached agreement with iwi on the methodology and approach to assess sites of potential significance to iwi. Work is underway to assess these nominated sites.

25. Auckland received a “Special Mention” in the prestigious Lee Kuan Yew World City Prize 2016 alongside innovative global cities Sydney, Toronto and Vienna. The success of Auckland’s urban transformation into a design-led city was noted.

26. Through our Māori and Pasifika Trades Training Programme we placed 196 local young people in trades and infrastructure training and partnered with 30 infrastructure and construction companies to develop sustainable employment options for trainees.

27. In 2015/2016, 400 qualifying development resource consents had been approved for 6,280 dwellings/sections, up from 176 consents for 2,392 dwellings/sections at the end of year 2 of the Auckland Housing Accord.

28. Ten plan variations were completed, live-zoning 1,550 hectares of land and enabling the fast track consenting of 22,900 new homes in the Future Urban Zone.

29. Phase 1 of the Nelson Street Cycleway, ‘Te Ara I Whiti’, was opened to the public in December.

Environmental management and regulation

30. Demand for Building Control services grew strongly in 2015/2016, with lodged consent volumes up 13 per cent compared to last year, and inspection volumes up 12.7 per cent.

31. The number of resource consent requests received during 2015/2016 increased by 10.5 per cent compared to the previous year. This indicates that the market is continuing to grow and is likely to result in a continued increase in building consents.

32. The new inorganic collections service started in February 2016 and has been rolled out across the region. Currently, the number of households booking an inorganic collection is 16 per cent of all eligible households. To date all targets are in line with expectations, with around 30 per cent of material collected being diverted from landfill. The material diverted from landfill is distributed to charities and social enterprises, and has created new jobs.

33. In March 2016 the Retrofit Your Home programme celebrated its 10 thousandth home insulated and to date over 10,300 homes have now been insulated. The voluntary programme provides financial assistance, advice and information to assist in creating improved sustainable home environments.

34. We delivered an annual stormwater capital expenditure work programme of over $73 million, resulting in quality infrastructure for a green Auckland and healthier waterways.

Parks, community and lifestyle

35. Waitangi Day was celebrated across Auckland, with estimated attendances of 4,000 for Waitangi Day Family Celebrations in Hayman Park, 10,000 for Waitangi @ Waititi at Hoani Waititi Marae in Glen Eden, and 7,000 for Waitangi Day 2016 at Takaparawhau (Bastion Point.

36. Events held at the Botanic Gardens were well-attended, including Sculpture in the Gardens, which attracted 338,600 visitors.

37. The Maunga Authority improved pedestrian access and reduced motor vehicle transit on Maungawhau-Mt Eden.

38. Ōtāhuhu’s new recreational precinct, Tōia, which features a new pool, library, outdoor play space and an indoor recreation centre, was opened in August 2015. Tōia is a unique community facility with a variety of co-located community services. Over 195,000 visitors, including 16 schools, have been through the door since it opened.

39. Hundreds of campers flocked to 44 campgrounds for the Big Campout, celebrating 50 years of regional parks.

40. An additional 217 hectares of land has been added to the regional parks portfolio as a result of consent conditions resulting from subdivision and the subsequent vesting of land to the council at Te Arai North. This brings the total area of Te Arai Regional Park to approximately 300 hectares.

41. Mt Albert Aquatic Centre reopened its doors to the public in September after a revamp that included a new roof, repainting, refreshed hydro slide and changing rooms.

42. The Reading Steps Project launched in September in response to customer feedback, making it easier for parents to find books at a suitable reading age for their children.

Governance and support

43. The OurAuckland website went live in October 2015. This is an online hub for council news, events and social media, and complements the OurAuckland monthly publication.

44. Standard and Poor's affirmed Auckland Council credit ratings at AA/A-1+ and the outlook remains stable. Moody's affirmed Auckland Council's Aa2 stable credit rating. These ratings affect the interest rates Auckland Council pays on its debt.

45. December 2015 saw the one-year anniversary of the Bledisloe Lane Service Centre. Customer interactions have increased by 25 per cent since the service centre moved to Bledisloe Lane.

Fourth quarter performance highlights and achievements

Auckland development

46. The Auckland Unitary Plan Independent Hearings Panel hearings were completed in May 2016. Since the Proposed Auckland Unitary Plan was notified in September 2013 there has been 13,364 public submissions and over one million separate submission points reviewed, 249 days of hearings across 81 hearing topics and over 10,000 pieces of evidence lodged.

47. We hosted the second Tripartite Economic Alliance Summit between Auckland, Guangzhou and Los Angeles. This enabled Auckland to leverage its relationship into meaningful economic partnerships and support outcomes for local business.

48. The council's Integrated Bylaws Review and Implementation programme won the Prime Minister's Award at the Institute of Public Administration New Zealand Public Sector Excellence Awards 2016.

Environmental management and regulation

49. New 240L bins were delivered to 210,000 households in the Rodney, North Shore and Waitākere areas. This is the largest rollout of recycle bins ever in Australasia. An extra refuse and recycle collection was made available to approximately 68,000 households to ensure no delays due to changes in collection days.

50. A massive community effort to clean up Puhinui Stream took place on 30 April. Over 1,900 volunteers collected six tonnes of rubbish, 500kg of recyclables, 200 shopping trolleys and 300 car tyres, all within four hours.

51. The Devonport Community Recycling Centre officially opened on 25 May 2016. The centre employs 10 staff and 60 per cent of the material it processes is diverted from landfill.

Parks, community and lifestyle

52. Over 70 Anzac Day services took place this year. A combined total of approximately 15,000 people attended the dawn and civic services at Auckland Domain.

53. A grove of nine pōhutukawa and tōtara trees were planted on the summit of Maungakiekie-One Tree Hill at a public dawn ceremony held by the Maunga Authority. The ceremony was attended by hundreds of Aucklanders.

54. The new Estuary Arts Centre Education Wing in Orewa was formally opened on 10 April 2016, following a full day of free art activities for young and older people.

55. The new $1.9 million Wairau Stream Bridge opened, providing a pedestrian and cycle crossing that opens to allow boats to enter and leave the marina.

56. The public purchase of Glenfern Sanctuary on Great Barrier was confirmed. This is a milestone for the island and will be a catalyst for future environmental initiatives.

57. The refurbishment and upgrade of the Bentley Court Phase II housing for older people has been completed.

58. A new Social Sport programme has launched, involving four centres (Te Matariki Clendon, Moana-Nui-A-Kiwa, Ōtara Leisure and Allan Brewster) running weekly in-house youth activation sessions, each supporting and enabling up to 20 local young people to run events, workshops etc.

59. Auckland Council, in collaboration with Unitec Institute of Technology Bachelor of Sport (Management) students, hosted a Youth Speak Sport Summit at Eden Park on 27 May 2016. More than 100 school students attended to have their say on the future of sport and recreation in Auckland.

60. Youth Connections hosted a successful JobFest, with 75 employers and over 2,000 young people attending. One month on, 50 youth had been employed as a result of JobFest.

61. More than 80 people attended the Ethnic Peoples' Advisory Panel's Ethnic Engagement Forum on 30 April 2016. The forum was held in collaboration with AUT and the Federation of Multicultural Councils to discuss ethnic peoples’ engagement with tangata whenua and how the media portrays ethnic communities.

62. Our online booking system, Going Places Online, is now live. This means Aucklanders can book venues more quickly and easily and represents a great improvement in the level of service to our venue hirers.

63. New functionality went live on the Auckland Council website that allows customers to order and pay online for LIM reports for Manukau and Rodney areas. This service fills a gap as these two regions have not previously had any online options to purchase these reports.

64. Following a number of high-profile animal attacks, Animal Management launched the Menacing Dogs Amnesty. This resulted in 1,529 previously unknown menacing dogs signed up for registration, micro-chipping and de-sexing.

65. On 11 June 2016, the newly refurbished Warkworth Service Centre was officially opened. The new-look site focuses on customer experience with interactive screens and open friendly spaces.

Governance and support

66. We processed 3,321 submissions for the Annual Plan 2016/2017. There was an overall increase of 1,465 submissions compared to the last Annual Plan consultation. Following the consultation process the Annual Plan was successfully adopted.

67. The contact centres successfully supported the text campaign for increasing direct debit and e-rates participation, resulting in 1,500 additional direct debit accounts and 3,500 e-rates accounts.

Performance measure results

68. For each of the activities delivered by the council, the LTP includes level of service statements and associated performance measures. This section provides interim unaudited results showing our performance results compared to the targets set in the LTP.

69. The performance measures included in the 2015-2025 LTP changed significantly from the previous LTP. The 2015/2016 Annual Report will be the first time that the council will report back externally against the performance measures as contained in the LTP. A number of the measures are new.

70. As reported previously, the Internal Audit department has been reviewing and testing underlying business processes that produce the information to report back against performance measures. The purpose of this work has been to provide comfort to the external auditors that the underlying business processes have integrity and that information being produced and reported is complete and accurate.

71. At the completion of Internal Audit’s review work, there were no significant unresolved issues remaining. Where issues have been identified they have been rectified by the business unit at the time of the review. The results of Internal Audit’s work have been reported to the Audit and Risk Committee.

Year-end results

72. The quarterly performance reports presented to this committee have included results for those measures where the information was available at the quarter end. Also included in the quarterly reporting was a year-end outlook for the performance measure results.

73. In this final quarter of the financial year we are reporting on 97 per cent of the total number of LTP measures. This includes the annual survey results which were previously not available.

74. The year-end results show that 49 regional measures (58 per cent) achieved the targets set, five measures (6 per cent) achieved a result close to target (termed ‘substantially achieved’), and 28 measures (33 per cent) did not achieve their targets. These are interim unaudited results which could change through the audit process. These results are similar to the previously reported year-end outlook.

75. A number of measures in the regulatory services area did not achieve the targets set. The activity volumes for these service areas have increased significantly since last year (e.g. lodged building consents and building inspection volumes up 13 per cent). A range of actions are underway to address these service levels.

76. The next graphs provide a summary of key performance measures. Further detailed information can be found in Appendix 1.

77. The symbols below are used to summarise the results. These align with the symbols used in the Annual Report.

Achieved	Substantially achieved	Not achieved but progress made	Not achieved

78. Percentage of registered food premises graded annually

79. Percentage of high-risk alcohol premises inspected annually

80. Percentage of urgent animal management complaints such as dog attacks responded to within one hour

81. Percentage of noise complaints responded to within 30 minutes for urban areas or 60 minutes for rural areas

82. Number of dwellings and sites consented towards Auckland housing targets

83. Percentage of building consent applications processed within 20 days

The FY16 year-end result will be tabled at the
committee meeting.

84. Percentage of non-notified resource consent applications processed within 20 working days

85. Percentage of notified resource consent applications processed within 70 working days

86. Domestic kerbside refuse (kilograms per capita per annum)

87. The median response time (in hours) to attend a flooding event, from the time that Auckland Council receives notification to the time that service personnel reach the site

88. Facility utilisation – utilisation at peak times for council-managed community centres and venues for hire

89. Facility utilisation – utilisation at off-peak times for council-managed community centres and venues for hire

90. Percentage of community facilities bookings used for health and wellbeing related activity

91. Number of visits to library facilities per capita

92. Number of library items borrowed (millions)

93. Rolling 10-year return for diversified financial assets portfolio, compared to reference portfolio

Financial performance results

94. This section provides an overview of the financial performance results for the year ended 30 June 2016.

$millions	Actual	Revised Budget	Variance		Annual Plan
Operating revenue	528	519	9	2%	513
Operating expenditure	2,044	2,045	1	-	2,027
Net operating expenditure	1,516	1,526	10	1%	1,514
Rates revenue	1,574	1,579	(5)	-	1,584
Net operating surplus/(deficit)	58	53	5	9%	70
Net non-operating revenue/ (expenditure)	(691)	(275)	(416)		(275)
Net surplus/(deficit)	(633)	(222)	(411)		(205)

95. Year-end results: The overall result shows a deficit of $633 million, which is $411 million unfavourable compared to the budget. The net operating result included in this of $58 million is $5 million favourable compared to budget.

96. Operating revenue: The overall result for the year is $9 million (two per cent) favourable to budget. Higher regulatory services revenue, property rental revenue and dividend income was partially offset by losses (non-cash) incurred on the Diversified Financial Assets (DFA) portfolio due to a downturn in global markets.

97. Operating expenditure for the year was in line with budget. Increased costs were incurred across some areas such as regulatory services (due to the increase in service demand and offset by higher revenue), professional services (due to key projects such as the Unitary Plan) and depreciation; these were offset by savings achieved across a number of areas including interest costs incurred on debt (mainly due to timing delays in capital expenditure).

98. Net operating surplus/deficit: Overall surplus of $58 million is $5 million favourable compared to budget. The efficiency gains that were budgeted for in the LTP were achieved through a number of initiatives, including smarter procurement, simpler and better information technology and bringing more work in-house to reduce reliance on external providers.

99. Rates revenue is slightly below budget for the year, mainly due to lower penalty income than budgeted.

100. Non-operating revenue/expenditure is $416 million unfavourable compared to budget, which is mainly due to accounting (non-cash) adjustments related to fair value of treasury derivatives portfolio, lower development contributions income than budgeted and increased provisioning costs. These were offset partially by reduced capital funding to CCOs due to timing delays.

101. Net operating performance results by theme:

The next table provides a split of the net operating result by each of the LTP themes.

$million	Actual	Revised budget	Variance		Annual Plan
Auckland development	140	154	14	9%	142
Economic and cultural development	89	92	3	3%	91
Environmental management and regulation	294	297	3	1%	288
Parks, community and lifestyle	478	472	(6)	1%	469
Transport	389	389	-	-	389
Governance and support	126	122	(4)	(3%)	135
Net operating expenditure	1,516	1,526	10	1%	1,514
Rates revenue	1,574	1,579	(5)	-	1,584
Net operating surplus	58	53	5	9%	70

102. The ‘Auckland development’ theme is a favourable result for the year mainly due to increased property rental income and lower operational costs. The ‘Parks, community and lifestyle’ theme incurred higher depreciation and service delivery costs than budgeted. For the ‘Governance and support’ theme, the unfavourable variance to budget is largely due to the DFA portfolio losses mentioned previously.

103. Capital expenditure delivery performance: Over the year there was $413 million of capital expenditure completed, which is 74 per cent of the full programme of $556 million approved for the year.

104. The Capital Risk Fund at year-end had a remaining unused portion of $8.9 million, which is effectively savings achieved. Please refer to Appendix 8 for further information.

105. Capital expenditure delivery performance by theme: As anticipated in previous quarterly performance reporting, capital delivery performance was delayed in some areas. The ‘Auckland development’ theme includes commercial property strategic development projects, which experienced timing delays. The ‘Parks, community and lifestyle’ theme includes the community facilities portfolio, which experienced delays across a number of projects including Albany Community Hub and the Warkworth Town Hall upgrade. This theme also had delays across various parks, sports, recreation and libraries projects, particularly in the renewals work programme. Timing differences are also reflected in the “Governance and support” theme, mainly due to the corporate property projects.

$million	Actual	Revised budget	Variance	Complete %	Annual Plan
Auckland development	92	137	45	67%	101
Environmental management and regulation	90	99	9	91%	112
Parks, community and lifestyle	153	211	58	73%	256
Governance and support	78	109	31	72%	85
Capital expenditure	413	556	143	74%	554

106. Balance sheet performance: Property, plant and equipment: asset revaluations at year-end 30 June 2015 resulted in asset values higher than projected in the LTP. There have been further asset revaluation increases for operational land and buildings for the June 2016 year end.

$million	Actual as at June 2016	Projected per LTP June 2016	Actual audited June 2015
Assets
Property, plant and equipment	12,716	12,077	12,064
Other assets and investments	24,227	23,992	24,161
Less liabilities
Borrowings	6,942	7,175	6,557
Other liabilities	1,897	1,175	1,396
Net assets (ratepayers’ equity)	28,104	27,719	28,272

107. Treasury management, including borrowings: Total net debt at 30 June 2016 was $6.9 billion, which was $0.1 billion lower than the forecast debt projected in the LTP. This favourable result was largely due to the timing of capital expenditure.

108. Funding costs: the year-to-date average cost of funds was 5.18 per cent, which aligns with the budgeted level of 5.19 per cent.

109. The DFA portfolio totalled $315 million at the end of the year. The LTP performance measure relating to this portfolio is a long-term rolling average return compared to the reference portfolio. The return since the formation of Auckland Council in November 2010 was 9.3 per cent, compared to a 9.5 per cent return on the reference portfolio for the same period ended 30 June 2016. The short-term return on the portfolio for the 2015/2016 year was 3.09 per cent.

110. Debtors’ management information can be found in Appendix 7. Rates debt collection at 30 June 2016 is largely on track and progressing well when compared to the prior years.

111. Further information available in the appendices to this report include:

· Appendix 1 – Performance measures

· Appendix 2 – Auckland economic update

· Appendix 3 – Treasury report

· Appendix 4 – Professional services expenditure information

· Appendix 5 – LGOIMA information

· Appendix 6 – Customer service information

· Appendix 7 – Debtor information

· Appendix 8 – Capital Risk Fund

Consideration

Local Board views and implications

112. Local boards receive their own reporting for their respective areas. The local board quarterly performance reports have been enhanced to improve reporting on the LTP performance measures. The aim here is to provide an early indication to the local boards as to how performance is tracking against targeted levels.

Māori impact statement

113. The report details some high-level activities delivered in the fourth quarter of 2015/2016, of which there are several initiatives with positive impacts on, or for, Māori. While this is not a complete list, key activities with positive impacts on and for Māori include:

· A grove of nine pōhutukawa and tōtara trees were planted on the summit of Maungakiekie-One Tree Hill at a public dawn ceremony held by the Maunga Authority. The ceremony was attended by hundreds of Aucklanders and has received widespread positive media coverage.

· More than 80 people attended the Ethnic Peoples' Advisory Panel's Ethnic Engagement Forum on 30 April 2016. The forum was held in collaboration with AUT and the Federation of Multicultural Councils, to discuss ethnic peoples’ engagement with tangata whenua and how the media portrays ethnic communities.

Implementation

114. There are no financial or resourcing implications arising from receipt of this report.

115. Quarterly reporting on performance is not a legal requirement and there are no legislative implications from the receipt of this request.

Attachments

No.	Title	Page
a View	Performance Report Appendices June 2016	61

Signatories

Author

Jenny Livschitz - Manager Corporate Performance and Reporting

Authorisers

Kevin Ramsay - General Manager Corporate Finance and Property

Sue Tindal - Group Chief Financial Officer

Finance and Performance Committee

09 August 2016

Budget Update

File No.: CP2016/16196

Purpose

1. To seek approval for budget changes relating to 2015/2016 year-end deferral process, Puhoi rural fire station and Marlborough Park Hall.

Executive Summary

Year-end deferrals

2. Each year, a budget deferral process is undertaken. As part of this process, staff review the underspend in capital (capex) and operational (opex) budgets of the previous year against set criteria as to whether any remaining budget should be carried forward to the next financial year.

3. Specific criteria for deferrals are in place to reflect good practice, such as:

· assessment of the group’s overall financial performance

· opex deferral relating to specific circumstances (e.g. targeted rates, special levy, grants committed to third parties)

· capex deferral for discrete projects that are in the execution phase but have experienced unexpected timing change

· locally driven initiative (LDI) opex and capex deferral within the three year funding cycle that the funding was provided for.

4. As detailed deferrals will not be available until September and given the timing of the local body election, it is recommended that the committee delegate to the Chair and the Group Chief Financial Officer the authority to approve budget adjustments resulting from the year-end deferral process, provided that such adjustments do not adversely affect the overall budget for 2016/2017 and the outer years.

Puhoi rural fire station

5. Puhoi Volunteer Rural Fire Force (PVRFF) is an incorporated society established in 2006. It has been operating in temporary accommodation since inception, while raising funds to build a new station. Approximately $809,000 has been raised and spent to date, and the station building is now at ground level (i.e. concrete slab). A further $595,000 is required to complete the building, to which New Zealand Fire Service has agreed to contribute $100,000.

6. PVRFF is seeking the council’s support of up to $495,000, noting that any additional funds raised by PVRFF would reduce the council’s contribution and up to $100,000 underwrite by Auckland Rural Fire is also available.

7. Staff recommend the committee approve a grant of up to $495,000 in 2016/2017 to PVRFF to complete the construction of the fire station. The grant is proposed to be funded by bringing forward up to $495,000 of capex for Rural Fire activities from 2017/2018.

Marlborough Park Hall

8. The Long-term Plan 2015-2025 (LTP) provides approximately $768,000 of capex to re-purpose the Marlborough Park Hall in Kaipātiki Local Board area from a simple hall for hire to a facility providing youth programmes.

9. An annual budget of $120,000 is required to operate the re-purposed facility. $75,000 per annum is being funded from the existing budget of Arts, Culture and Events (ACE), leaving an annual shortfall of $45,000. The shortfall for 2016/2017 is estimated to be $15,000, as the facility is not expected to be operational until later this financial year. The board is seeking the committee’s approval of additional opex budget to enable the operation of the facility at the preferred service level by the board.

Recommendation/s

That the Finance and Performance Committee:

a) agree to delegate to the Chair of the Finance and Performance Committee and the Group Chief Financial Officer the authority to approve budget adjustments resulting from the year-end deferral process, provided that such adjustments do not adversely affect the overall budget for 2016/2017 and the outer years.

b) approve a grant of up to $495,000 in 2016/2017 to Puhoi Volunteer Rural Fire Force to complete the construction of its fire station, noting that any additional funds raised will reduce the council’s contribution and that up to $100,000 underwrite is committed by Auckland Rural Fire.

c) approve an additional operational expenditure budget of $15,000 in 2016/2017 and $45,000 per annum thereafter, to enable the ongoing operation of the re-purposed Marlborough Park Hall as a youth facility in the Kaipātiki Local Board area.

Comments

Year-end deferrals

10. Each year, a budget deferral process is undertaken. As part of this process, staff review the underspend in capital (capex) and operational (opex) budgets of the previous year against set criteria as to whether any remaining budget should be carried forward to the next financial year.

11. Specific criteria for deferrals are in place to reflect good practice, such as:

· assessment of the group’s overall financial performance

· opex deferral relating to specific circumstances (e.g. targeted rates, special levy, grants committed to third parties)

· capex deferral for discrete projects that are in the execution phase but have experienced unexpected timing change

· locally driven initiative (LDI) opex and capex deferral within the three year funding cycle that the funding was provided for.

12. As detailed deferrals will not be available until September and given the timing of the local body election, it is recommended that the committee delegate to the Chair and the Group Chief Financial Officer the authority to approve budget adjustments resulting from the year-end deferral process, provided that such adjustments do not adversely affect the overall budget for 2016/2017 and the outer years.

Puhoi rural fire station

13. Puhoi Volunteer Rural Fire Force (PVRFF) is an incorporated society established in 2006. The local community raised significant funds to purchase equipment, a fire truck, and temporary accommodation (i.e. two shipping containers). The council, as the fire authority, contributes around $45,000 per annum to the operation of PVRFF.

14. PVRFF is still operating in temporary accommodation, while raising funds to build a new station. Approximately $809,000 has been raised and spent to date, and the fire station building is now at ground level (i.e. concrete slab). A further $595,000 is required to complete the building, to which New Zealand Fire Service has agreed to contribute $100,000.

15. PVRFF is seeking the council’s support of up to $495,000, noting that any additional funds raised by PVRFF would reduce the council’s contribution and up to $100,000 underwrite by Auckland Rural Fire is also available.

16. The council has a number of options in response to this request, including doing nothing, providing a loan or providing a one-off grant.

17. Doing nothing does not address the long-standing needs of PVRFF as a key initial response unit for the surrounding areas. Providing a loan would likely result in PVRFF having to rely mainly on the council’s support to repay the loan.

18. Staff recommend the committee approve a grant of up to $495,000 in 2016/2017 to PVRFF to complete the construction of the fire station. The grant is proposed to be funded by bringing forward up to $495,000 of capex for Rural Fire activities from 2017/2018.

Marlborough Park Hall

19. The LTP provides approximately $768,000 capex to repurpose the Marlborough Park Hall in Kaipātiki Local Board area from a simple hall for hire to a facility providing youth programmes. This project is not a locally driven initiative.

20. In December 2015, the board confirmed the approach to management and governance by a community trust or incorporated society through a funding agreement. The board acknowledged the level of budget required to operationalise the facility would be $120,000 per annum ($90,000 towards staff and $30,000 for programming). The board anticipated that the opex associated with non-LDI capex would be funded by the Governing Body under the Local Board Funding Policy.

21. Arts, Culture and Events (ACE) department is able to provide $75,000 per annum, leaving an annual shortfall of $45,000. The shortfall for 2016/2017 is estimated to be $15,000, given the facility is not expected to be operational until later this financial year. The board is seeking the committee’s approval of additional opex budget to enable the operation of the facility at the preferred service level by the board.

Overall budget impact

22. The table below shows the financial impacts of the budget changes considered on this agenda. The impacts include:

· $510,000 increase in net borrowing for 2016/2017

· $521,000 impact on the group operating result for 2016/2017

· $80,000 additional general rates requirement for 2017/2018. The projected average general rates increase would remain at 3.5 per cent.

Estimated financial impacts on Auckland Council Group

$000	Closing Group Net Borrowing	Group Net Surplus/(Deficit) After Tax	General Rates		Cumulative % rates increase
	2016/2017	2016/2017	2017/2018	% increase	Cumulative % rates increase
Annual Plan 2016/17	8,435,972	330,000	1,555,982		3.5000%
August 2016 proposals
Puhoi rural fire station	495	-506	32	0.0022%
Marlborough Park Hall	15	-15	47	0.0032%
Potential Position	8,436,482	329,479	1,556,062		3.5054%

Consideration

Local Board views and implications

Marlborough Park Hall

23. Kaipātiki Local Board made the decision regarding the repurposing of the Marlborough Park Hall as a youth focused community facility. The board confirmed the approach to management and governance of the facility by a community trust or incorporated society through a funding agreement. The board anticipated the ongoing operational funding associated with this asset based services to be provided by the Governing Body.

Māori impact statement

Marlborough Park Hall

24. In 2013, 13 per cent of young people in Kaipātiki were identified as Māori. The level of impact that re-purposing the Marlborough Park Hall as a youth facility will have, will largely depend on the nature and quality of the programming in the future facility. Due to the intention that the facility will focus on all youth within its catchment area, there will be benefits to Kaipātiki Māori youth.

Implementation

25. Budgets would be amended in core financial systems and used for internal management reporting, regular reporting to councillors and financial control for the 2016/2017 financial year.

Attachments

There are no attachments for this report.

Signatories

Author

Neil Huang - Senior Analyst

Authorisers

Robert Irvine - Financial Planning Manager CCOs

Matthew Walker - GM Financial Strategy and Planning

Sue Tindal - Group Chief Financial Officer

Finance and Performance Committee

09 August 2016

Te Toa Takitini - year-end Māori responsiveness portfolio report

File No.: CP2016/14754

Purpose

1. To report year-end results for the 2015/2016 Te Toa Takitini Māori Responsiveness Portfolio.

2. To report year-end update for the Treaty Audit response work programme.

3. To provide an overview of the 2016/2017 Te Toa Takitini Māori Responsiveness Portfolio.

Executive summary

4. Te Toa Takitini Māori Responsiveness Portfolio monitors and reports on activity and expenditure including Māori transformational shift priorities and co-governance activity.

2015/2016 budget

5. In the 2015/2016 financial year, Māori transformational shift programmes, projects, or activities had a previously reported budget of $9,142,000. A revised budget of $9,010,000 was reported last quarter after corrections were made. This is the budget baseline for the report.

Year to date expenditure

6. Year-end expenditure for 2015/2016 Māori transformational shift activity is $8,928,000 against a YTD budget of $9,010,000. This represents a variance of $82,000 or 1 per cent.

7. Expenditure across the Māori transformational shift activity:

· Whai Rawa-Economic Development: year-end expenditure of $923,000 from a $1,125,000 budget indicating a variance of $202,000.

· Whai Painga-Social Well-being: year-end expenditure of $1,585,000 from a $1,350,000 budget indicating a variance of $(285,000).

· Whai Tiaki-Cultural Well-being: year-end expenditure of $5,859,000 from a $5,841,000 budget indicating a variance of ($18,000).

· Whai Tika-Effectiveness for Māori: year-end expenditure of $528,000 from a $644,000 budget indicating a variance of $116,000.

· Whai Tahinga-Treaty Settlement: year-end expenditure of $33,000 from a $50,000 budget indicating a variance of $17,000.

8. Key project variances are as follows:

· Maori cultural investment fund (Te Waka Angamua) – $1,000,000 budget Marae Papakāinga and Sea Change project $1,200,000. Variance ($200,000).

· Maori engagement monthly hui (Panuku Development Auckland) – $88,000 budget. Additional projects requiring engagement resulted in actual of $187,000. Variance ($99,000).

· Maramataka Toi Maori (Arts, Community and Events) – $441,000 budget. Additional initiatives resulted in actual $588,000. Variance ($77,000).

· Māori Wardens (Auckland Transport) $600,000 budget. Service delivery cost. Actual $395,000. Variance $205,000.

· Māori Road Safety programmes (Auckland Transport) $540,000 budget. Limited project planning for budget. Actual $104,000. Variance $436,000.

· Iwi engagement on projects (Watercare) - $1,059,000 budget. Overestimated budget for service delivery, Actual $960,000. Variance $99,000.

Co-governance/co-management Activity

9. Eight activities totalling $6,036,000 were identified as co-governance or co-management activities for FY 2015/2016, delivering on the priorities agreed in council’s 2015-2025 Long-term Plan.

10. Year-end expenditure for co-governance and co-management activity was $4,688,000 against a YTD budget of $6,036,000. This indicates a variance of $1,348,000 or 22 per cent. The majority of variance relates to delays in the delivery of planned capex programmes. These will be carried forward into the 2016/2017 financial year.

· Maunga Authority - $900,000 - a number of planned capex programmes have been put on hold while the Integrated Management Plan is developed.

· Parakai Reserves Board - $250,000.

· Pukekiwiriki co-management agreement – $100,000.

Cultural Initiatives Investments Fund

11. For the 2015/2016 financial year Auckland Council invested $1,086,000 to support marae and papakāinga, via the cultural initiatives investment fund, which included provision of $940,000 in grants to the following seven marae:

· Reretewhioi Marae (mana whenua) (Franklin).

· Papatuānuku Marae (mataawaka) (Mangere-Ōtahuhu).

· Te Aroha Pa (mana whenua) (Rodney).

· Ruapotaka Marae (mataawaka) (Maungakiekie-Tāmaki).

· Ngāti Ōtara Marae (mataawaka) (Ōtara-Papatoetoe).

· Mataatua Marae (mataawaka) (Mangere-Ōtahuhu).

· Te Herenga Waka Marae (mataawaka) (Hibiscus-Bays).

12. For the 2015/2016 year we invested in applications totaling $146,000 with three papakāinga entities as follows:

· Ngā Maunga Whakahii o Kaipara - relocation of Hobsonville houses.

· Ngā Maunga Whakahii o Kaipara / Uruamo Whānau Trust -Te Keti B development.

· Te Whānau a Haranui 438 Trust - Waimango Papakāinga Project, Orere Point.

Treaty Audit Response work programme

13. The Treaty of Waitangi Audit response work programme sits within the Whai Tika – Effectiveness for Māori programme of Te Toa Takitini. The Waharoa group has determined that five action groups have been completed in 2015/2016. Attachment B contains a register of full progress on Treaty Audit actions and Attachment D sets out the Treaty Audit response work programme for 2016/2017.

Māori Responsiveness Plans

14. Māori responsiveness planning is progressing steadily. Five Māori Responsiveness Plans are now complete and 11 are in development. Of the 11, five plans (Plans and Places, Research, Investigation and Monitoring Unit, Civil Defence, Arts, Culture and Events, and People and Capability) are in the final stages of development and in the Internal Audit/Legal/Te Waka Angamua review process. Attachment C provides the plan status of participating departments and Council-Controlled Organisations (CCOs).

2016/17 Annual Plan Update

15. The 2016/2017 draft Annual Plan budget (year two of the Long-term Plan budget) for Māori Transformational Shift priorities is $9,908,000.

16. The Executive Leadership Group (ELG) of Te Toa Takitini meets quarterly to track progress on this portfolio of work and have re-prioritised some of the Long-term Plan Māori Transformational Shift actions for FY 2016/2017.

17. Re-prioritisation is designed to ensure that council’s programmes and activities will achieve real progress on the Auckland Plan goal of ‘significantly lifting Māori social and economic well-being’ and will achieve better outcomes with and for Māori.

18. On 8 June 2016 the ELG approved the inclusion of 10 new initiatives into the 2016/2017 Annual Plan. Due to the re-prioritisation of existing actions and budgets, the year two Long-term Plan budget envelope for Māori Transformational Shift has not been impacted and remains at $9,908,000. This has been achieved through budget reductions across the Te Toa Takitini portfolio and the re-prioritisation of some existing budgets. Refer to Attachment E for an overview of the 2016/2017 Te Toa Takitini activity programme.

19. As agreed with the Independent Māori Statutory Board, for 2016/2017, the Finance and Performance Committee will receive three reports per year on the Te Toa Takitini portfolio of work. Reports will be presented to the Finance and Performance Committee in November, April and August.

Recommendation/s

That the Finance and Performance Committee:

a) receive the Te Toa Takitini – year-end Māori responsiveness portfolio report.

b) approve the 2016/2017 Treaty Audit response programme.

c) approve the 2016/2017 Te Toa Takitini Māori responsiveness portfolio.

Comments

20. In the 2015/2016 financial year, programmes, projects and activities with a combined budget of $9,010,000 have been identified as Māori transformational shift activities and will contribute to ‘significantly lift Māori social and economic well-being’. In addition, eight activities totalling $6,036,000 have been identified as co-governance or co-management activities for 2015/2016. These activities are delivering on the priorities agreed in council’s 2015-2025 Long-term Plan.

21. The 2015/2016 budget was previously reported as $9,142,000. This figure has been revised to $9,010,000 after corrections were made to budget information and reported in quarter three.

22. Year-end expenditure for 2015/2016 Māori transformational shift activity is $8,928,000 against a YTD budget of $9,010,000. This indicates a variance of $82,000. Table one provides an overview of the Māori transformational shift budget and expenditure.

Māori Transformational Shift Activity		Year End 2015/2016 $000
Activities	Annual Budget FY16 $000	Year End Actuals $000	Variance $000
Whai Rawa – Economic Development	1,125	923	202
Whai Painga - Māori Social Well-being	1,350	1,585	(235)
Whai Tiaki - Māori Cultural Well-being	5,532 (Opex)	5,585	(53)
Whai Tiaki - Māori Cultural Well-being	309 (Capex)	274	35
Whai Tika- Effectiveness for Māori	644	528	116
Whai Tahinga –Treaty Settlement	50	33	17
OPEX TOTAL	8,701	8,654	47
CAPEX TOTAL	309	274	35
GRAND TOTAL	9,010	8,928	82

Table One: Māori transformational shift activity and expenditure.

23. Key projects variances are as follows:

· Māori cultural investment fund (Te Waka Angamua) – $1,000,000 budget Marae Papakāinga and Sea Change project $1,200,000. Variance ($200,000).

· Māori engagement monthly hui (Panuku Development Auckland) – $88,000 budget. Additional projects requiring engagement resulted in actual of $187,000. Variance ($99,000).

· Maramataka Toi Maori (Arts, Community and Events) – $441,000 budget. Additional initiatives resulted in actual $588,000. Variance ($77,000).

· Māori Wardens (Auckland Transport) $600,000 budget. Service delivery cost. Actual $395,000. Variance $205,000.

· Māori Road Safety programmes (Auckland Transport) $540,000 budget. Limited project planning for budget. Actual $104,000. Variance $436,000.

· Iwi engagement on projects (Watercare) - $1,059,000 budget. Overestimated budget for service delivery, Actual $960,000. Variance $99,000.

24. For further detail refer to attachment A.

2015/2016 Co-governance and co-management overview

25. Eight activities totalling $6,036,000 were identified as co-governance or co-management activities for FY 2015/2016, delivering on the priorities agreed in council’s 2015-2025 Long-term Plan.

26. Year-end expenditure for co-governance and co-management activity was $4,688,000 against a YTD budget of $6,036,000. This indicates a variance of $1,348,000 or 22 per cent. The majority of variance relates to delays in the delivery of planned capex programmes. These will be carried forward into the 2016/2017 financial year.

· Maunga Authority - $900,000 - a number of planned capex programmes have been put on hold while the Integrated Management Plan is developed.

· Parakai Reserves Board - $250,000.

· Pukekiwiriki co-management agreement – $100,000.

Co- governance and co management activity

Opex

$000

Capex

$000

Budget 2015/16

$000

Actual

$000

Variance

$000

Co-governance-co-management

3,083

2,435

6,036

4,688

1,348

GRAND TOTAL

6,036

4,688

1,348

Table Two: Co-governance and co-management activity.

Summary of Whai Rawa - Māori Economic Well-being activity

27. The Whai Rawa programme consists of projects and initiatives that contribute to Māori Economic well-being. The narrative below provides highlights from the year including quarter four activity. Further detail of activity and expenditure is located in Attachment A.

Year-end highlights

· Māori Signature Event -Te Herenga Waka festival successfully delivered.

· Waka Development programme – the construction of two new waka, with the first launched at the Te Herenga Waka festival.

· ATEED led Māori Economic Growth Forum activities including delivery of the Māori Business Growth Workshop, receipt of the Māori Business Sector report, launch of the Dig My Idea winner, and support for the Emerging Māori Leaders Programme.

· ATEED led Māori Tourism Development opportunities which include delivery of a Regional Tourism Networking Day.

· The provision of two dedicated waka berths at Westhaven through Panuku Development Auckland (Panuku) is being finalised.

· Confirmation of three new Whai Rawa business cases for the 2016/2017 Annual Plan Te Toa Takitini portfolio:

o New sector development - research and funding application assistance to enable Māori/mana whenua to streamline funding and application process through private industries and central and regional government to develop and lead new sectors such as Bio-Actives.

o Indigenous Economic/Innovation Conference - establish Auckland as the location for the World Indigenous People’s Conference(s).

o Develop an Auckland visitor and industry promotional video that will elaborate and infuse Māori culture as Auckland’s unique selling point.

Key priorities for the first quarter 2016/2017

· Commence festival planning for the Tāmaki Herenga Waka Festival on Auckland Anniversary weekend 2017.

· Planning and implementation of the new Whai Rawa initiatives.

· Continue to pursue Māori tourism opportunities.

· Further development of Community of Practice approach across all whai (themes) to enable sharing of knowledge, resources, addressing performance issues.

Summary of Whai Painga - Māori Social Well-being activity

28. Whai Painga programme consists of projects and initiatives that contribute to Māori social well-being. The narrative below provides highlights from the year including quarter four activity. Further detail of activity and expenditure is located in Attachment A.

· The Māori Sport and Recreation Plan was presented to both the Roopu Manaaki of Active Auckland and One Voice governance group. An update was also given to the Parks, Sport and Recreation Committee. The framework has been tested with external stakeholders and has received a positive response. As a way to express the framework in a practical sense a compass tool has been developed. The benefit of the framework is twofold in that it enables the evaluation of current programmes and will inform the eligibility and development of future programmes.

· The Early Years project team has been established, and a literature review and current state report have been completed. The current state report included a stocktake that identified the programmes, services, policies, leases and grants that council targets towards early years. The work also identified where investments intentionally targeted Māori. A report on the wellbeing and resilience of whanau with tamariki Māori aged less than five living in Tamaki Makaurau has been completed and published on the council website. The report draws together data on wellbeing, education and employment adapting the ‘flourishing whanau’ framework developed by Te Kani Kingi et al (Massey University, 2014).

· Panuku supported a mana whenua working group for the council’s proposed Housing for Older People Partnership Initiative, providing detailed recommendations on how the future partnership can best meet its commitments to Māori and delivery of wellbeing outcomes for Māori housing clients.

· Successful Iron Māori Triathlon Event held at Duders Park in conjunction with Umupuia Marae.

· Confirmation of new business case for the 2016/2017 Annual Plan Te Toa Takitini portfolio

o Budget for Whare for life project was confirmed. The project assists council to enable Māori-led housing solutions that seek to actively support mana whenua and urban Māori organisations who seek to develop housing or participate in partnership opportunities.

· Drafting of Whai Painga outcomes statements and performance measures framework for the Māori Responsiveness Performance Framework.

Key priorities for the first quarter 2016/2017

· Further development of Community of Practice approach across all whai (themes) to enable sharing of knowledge, resources, addressing performance issues.

· Whare for Life - continue to support Māori-led housing options.

· Working across council and with the IMSB to design a cohesive Māori Housing Programme with enhanced capacity in the Design Programme Office. To be tabled at the Te Toa Takitini ELG meeting 10 August. The Whai Tiaki programme consists of projects and initiatives that contribute to Māori cultural well-being. The narrative below provides highlights from the year including quarter four activity. Further detail of activity and expenditure is located in attachment A.

Summary of Whai Tiaki- Māori Cultural Well-being activity

29. The Whai Tiaki programme consists of projects and initiatives that contribute to Māori cultural well-being. The narrative below provides highlights from the year including quarter four activity. Further detail of activity and expenditure is located in Attachment A.

Year-end highlights

· Mana whenua Kaitiaki Rangers - of the eight (four council and four Department of Conservation) mana whenua kaitiaki rangers that undertook training as summer rangers, six have found ongoing employment in kaitiaki work. The successful pilot has led to the confirmation of an extended regional permanent programme.

· Waitangi Day celebration events – Hayman Park, Takaparawhau, Hoani Waititi Marae.

· Delivery of Matariki events across the region, with Ngati Pāoa as the inaugural festival host.

· Para Kore ki Tāmaki-Zero Waste Marae - marae waste diversion rate exceeds expectation. A new three-year contract has been negotiated with Ngāti Whatua to continue to support marae and marae-based events to be para kore (recycling based). The budget for the new three-year contract has been increased from $85,000 p.a. to $110,000 p.a.

· Māori Public Art - project with Ngāti Tamaoho completed.

· Takaparawha Ōrākei Art Projects completed.

· Māori sites of significance - total of 152 nominated sites have been identified for assessment with 12 mana whenua groups.

· The Regional Kaitiaki Forum (governance) working party completed all preliminary milestone actions that included electing the chairs, confirming the terms of reference and establishing the two working group areas (strategic planning and water related issues). The inaugural meeting was held in July.

· Engagement with mana whenua in kauri dieback management is ongoing at a national and regional level. Opportunities for mana whenua engagement in operational delivery were also identified and include survey work to determine disease presence/absence.

· Supported mana whenua to be involved in the Sea Change project.

· For the 2015/2016 financial year council invested $1,086,000 to support marae and papakāinga, via the cultural initiatives investment fund, which included provision of $750,000 in grants to the following six marae:

o Reretewhioi Marae (mana whenua) (Franklin).

o Papatuānuku Marae (mataawaka) (Mangere-Ōtahuhu).

o Te Aroha Pa (mana whenua) (Rodney).

o Ruapotaka Marae (mataawaka) (Maungakiekie-Tāmaki).

o Ngāti Ōtara Marae (mataawaka) (Ōtara-Papatoetoe).

o Mataatua Marae (mataawaka) (Mangere-Ōtahuhu).

· An additional $190,000 grant was awarded to Te Herenga Waka Marae (mataawaka) to enable the marae construction to be completed.

· For the 2015/2016 year we invested in applications totaling $146,000 with three papakāinga entities as follows:

o Ngā Maunga Whakahii o Kaipara – relocation of Hobsonville houses.

o Ngā Maunga Whakahii o Kaipara / Uruamo Whānau Trust – Te Keti B development.

o Te Whānau a Haranui 438 Trust – Waimango Papakāinga Project, Orere Point.

· Completion of Māori Cultural Initiatives Investment Policy ready for committee approval.

· Confirmation of three new business case for the 2016/2017 Annual Plan Te Toa Takitini portfolio

o Regional Kaitiaki Forum - provide a strategic forum for council, central government and others to engage with mana whenua on strategic issues and high impact initiatives.

o Beneath our feet - provides the opportunity for Aucklanders and visitors to understand and celebrate Auckland’s unique Māori history. Strongly promotes Auckland’s unique Māori identity. Provide employment opportunities for Māori through the Arts Culture and tourism sectors.

o Regional Kaitiaki Ranger programme - training and employment opportunities for young Māori. Practical application of kaitiakitanga through council parks and other functions. Modeled on the successful southern sectors parks pilot programme run during 2015/2016.

Key priorities for the first quarter 2016/2017

· Cultural investment - preliminary actions for marae and papakāinga investment.

· Inaugural Regional Kaitiaki Forum meeting, confirm terms of reference and elect chairperson.

· Māori Sites of Significance - further progress in identifying and assessing sites.

· Planning and implementation of the three new Whai Tiaki initiatives.

Summary of Whai Tika - Effectiveness for Māori

30. The Whai Tika programme is made up of two distinct work streams the Treaty of Waitangi Audit response work programme and the Effectiveness for Māori workstream. Further detail of activity and expenditure is contained in Attachment A.

Year-end highlights

Treaty Audit Response work programme

31. The Treaty Audit response work programme was established in response to the Independent Māori Statutory Board’s 2015 Te Tiriti o Waitangi Audit Report. The Treaty Audit process is an important part of ensuring that council is meeting its statutory and Treaty based obligations toward Māori. The Treaty Audit report contains 67 individual recommendations which have been grouped together into 24 recommended action groups. Each action group has a set of closure criteria.

32. The programme has completed its first year of delivery. In 2015/2016 the response focused on identifying activities and owners to address recommendations, establishing a monitoring and reporting regime, and addressing key activities. The key actions focused on were:

· Improved implementation of Māori Responsiveness plans across remaining key departments and CCO’s.

· Completion and communication of key policies, including Hearings Policy.

· Developing a framework for relationship agreements between council and mana whenua.

· Establishment of the Regional Kaitiaki Forum.

· Ensuring that council is an employer of choice for Māori.

Closure of Treaty Audit actions

33. The Treaty Audit Report 2015 includes a “Summary of Recommended Actions”, which have been organised into 24 action groups. Each action group has a set of closure criteria, when these are met the Waharoa group (comprised of representatives from Te Waka Angamua, Internal Audit and the Independent Māori Statutory Board) jointly agree to close the action group and the associated Treaty Audit recommendations.

34. The Waharoa group has determined that five action groups have been completed in 2015/2016. The table below summarises progress to date. Attachment B is a register of full progress.

Action Groups

Open

Closed

Initiatives

Department/ CCO Māori Responsiveness Plans

Treaty of Waitangi Settlements Implementation

Hearings Policy

Good Practice Benchmarking

Effectiveness and Compliance Framework

Table 3 Te Tiriti O Waitangi Audit Report 2015 progress to date

Māori Responsiveness Plans

35. Māori responsiveness planning is progressing steadily. Five Māori Responsiveness Plans are now complete and 11 are in development. Of the 11, five plans (Plans and Places, Research, Investigation and Monitoring Unit, Civil Defence, Arts, Culture and Events, and People and Capability) are in the final stages of development and in the Internal Audit/Legal/Te Waka Angamua review process. Attachment C provides the plan status of participating departments and CCO’s.

36. Guidance (the Māori Responsiveness Plan toolkit) has been published to better assist the development of Māori Responsiveness Plans. The toolkit includes a detailed route map, templates and content from council’s legal department who have developed an assessment template that can be applied to all Māori Responsiveness Plans.

Māori Language Policy

37. The draft Māori Language Policy and Implementation Plan have been developed and socialised with a mana whenua reference group comprised of Māori language experts(a roopu pukenga), the Independent Māori Statutory Board and wider council family. Feedback on the discussion document and draft policy is being sought from mana whenua chairs, mataawaka, roopu pukenga and local boards. The draft policy will be presented to the Regional Strategy and Policy Committee in September.

Effectiveness for Māori work programme

38. The Effectiveness for Māori work programme focused primarily on the following initiatives:

· Learning and development innovations.

· Māori engagement hub.

· Senior leadership and diversity training.

39. Learning and development innovations have centred on developing a mobile phone application that builds cultural capability in a more accessible form. This is in the final stages of testing and will be rolled out by September 2016.

40. Senior leadership and diversity training for elected members, senior managers, technical/professional roles and Māori specialist roles was delivered through a combination of group learning workshops and targeted role-specific training.

41. Confirmation of one new business case for the 2016/2017 Annual Plan Te Toa Takitini portfolio

· The business case and funding for the Māori engagement hub has been approved. Implementation is awaiting the outcome of the Te Waka Angamua reshape and Organisational Strategy business case budget decisions.

Key priorities for the first quarter 2016/2017

42. Treaty Audit response work programme: Attachment D provides the project plan for the 2016/2017 Treaty Audit response work programme. Te Waka Angamua will continue to coordinate and report the initiatives related to the Treaty Audit response work programme.

43. Māori Responsiveness Plans: Māori Responsiveness Planning will continue to be a core activity to lift council’s performance around capacity, capability and commitments to Māori. Detailed guidance and examples are now available and we plan to target the remaining key departments and CCOs with the view of completing their plans within the year.

44. Māori Language Policy: establish a cross council programme team to develop a clear and cohesive programme of action as part of the three-year implementation plan associated with the Māori Language Policy.

45. Performance Framework: In 2015/2016 a Māori Responsiveness Performance Framework was drafted to assist council to measure, monitor and attribute its increased effectiveness for Māori and contribution to Māori well-being. During 2016/2017 we will complete the frameworks strategic alignment and socialise it with the Independent Māori Statutory Board. The framework will be rolled out across council thereafter and will assist in monitoring existing Māori Responsiveness Plans and those under development.

Summary of Whai Tahinga -Treaty of Waitangi Settlements activity

46. The Whai Tahinga programme Māori transformational shift activity supports Treaty settlement activity and is a multi-faceted programme of work. The narrative below provides highlights for this activity. Further detail of activity and expenditure is located in Attachment A.

Year-end highlights

· Ongoing work of co-governance entities such as Parakai Recreation Reserves Board, Ōrākei Reserves Board and others. Treaty Settlement coordination and response.

· Ongoing engagement with Crown and mana whenua groups in Treaty settlement negotiations where council interests are involved. Quarter four focused on Crown negotiations outcomes with Ngāti Whātua (Kaipara Harbour), Ngāti Tamaoho, Ngāti Rehua / Ngāti Wai ki Aotea, Ngāti Paoa and Marutūāhu Iwi Collective.

· Kaipara Harbour negotiations and the joint councils Kaipara Moana Working Party work programme ongoing.

· Tūpuna Maunga o Tāmaki Makaurau Integrated Management Plan has been approved by the Maunga Authority and is being considered by the Minister of Conservation.

· Ongoing work of co-governance entities such as Parakai Recreation Reserves Board and Ōrākei Reserves Board.

Key priorities for the first quarter 2016/2017

· Treaty settlement coordination and response for remaining negotiations where council interests are involved, including likely completion of seven individual iwi/hapū settlements and one collective settlement.

· Kaipara Harbour negotiations with Ngāti Whātua and Crown, including coordination of Kaipara local body authorities (Northland Regional Council, Kaipara District Council and Whangarei District Council) through the Kaipara Moana Working Party.

· Ongoing work of co-governance entities including Tūpuna Maunga Authority, Parakai Recreation Reserves Board and Ōrākei Reserves Board.

Consideration

47. Local boards through their advisors have been consulted on the identification of local board Māori transformational shift activity. Local boards will be included in the business partnering process to support the implementation of the monitoring and reporting for Māori transformational shift activity.

Māori impact statement

48. This report provides information on the year-end activities for 2015/2016 identified as Māori transformational shift activity. This report also provides information on the year-end activities identified as co-governance or co-management. These activities are delivering on the priorities agreed in council’s 2015-2025 Long-term Plan.

49. The Treaty Audit response work programme enables the council to strengthen their responsiveness to Māori through targeted actions and improvements.

Implementation

50. On-going monitoring of Māori transformational shift activity and Treaty Audit deliverables.

Attachments

No.	Title	Page
a View	Year- end Activity and Expenditure	103
b View	Treaty Audit Register July 2016	117
c View	Māori Responsiveness Plan Status	121
d View	Treaty Audit Response Programme 2016-2017	123
e View	2016 2017 Te Toa Takitini Māori Responsiveness Portfolio	131

Signatories

Author

Shane Cook - Kaihautu Whakatuturu Puni - Senior Maori Effectiveness Advisor

Authorisers

Sarah Howard - Manager Effectiveness for Maori

Phil Wilson - Governance Director

Sue Tindal - Group Chief Financial Officer

Finance and Performance Committee

09 August 2016

Quarterly Report on Non-Rateable Property Rating Treatment

File No.: CP2016/16135

Purpose

1. To inform the Finance and Performance Committee on the progress of the programme of work to review the rating treatment of properties currently non-rateable across Auckland.

Executive summary

2. The programme of work to review the over 10,000 non-rateable properties is on track to be completed by February 2018.

3. The table below shows the work which needs to be undertaken and what has been completed so far, along with the nett difference in rates after adjustments are made. As at 21 July 2016, 8,076 properties have been reviewed with 14 confirmed as rateable and 1,930 requiring more detailed investigation.

Legacy	Non-rateable properties	Total reviewed	Confirmed non-rateable	Confirmed rateable	Require more investigation	Balance for review	Nett $ rates changes
ACC	3,816	2,610	1,865	8	737	1,206	5,468
MCC	2,495	2,113	1,636	1	476	382	24,204
NSCC	1,770	1,436	1,182	2	252	334	310,000
WCC	1,123	911	664	3	244	212	4,910
RDC	1,412	1,006	785	-	221	406	-
Total	10,616	8,076	6,132	14	1,930	2,540	344,582

4. Following discussion on businesses operating at residential properties at the 19 May 2016 Finance and Performance Committee meeting, our contract valuers have specifically been looking for houses with signage indicating a property may be used for purposes other than a residence. This occurs most frequently in ‘mixed use’ locations often on the fringe of commercial town centres and along main arterial roads.

Recommendation/s

That the Finance and Performance Committee:

a) receive the report on the progress of the review of non-rateable land rating treatment.

Comments

5. A high-level review of non-rateable properties identified a number of possible issues that require further analysis including:

· reserves and other land in private ownership requires verification of non-rateable status

· DHB/university and schools/council properties require verification that shops, banks etc within them are treated as fully rateable

· government land requires verification of use to confirm whether rateable/non-rateable

· churches require verification that areas not used primarily as places of worship are treated as rateable

· different rating treatment of QE2 conservation land - rateable with 100% remission in some former council areas, non-rateable in others

6. The Rates Team is working closely with the Policy Team and Customer Services to ensure alignment and a standardised approach when communicating with ratepayers on any changes required.

7. The table below shows what has been completed so far, along with the nett difference in rates after adjustments made. As at 21 July 2016, 8,076 properties have been reviewed with 14 confirmed as rateable and 1,930 requiring more detailed investigation.

Legacy	Non-rateable properties	Total reviewed	Confirmed non-rateable	Confirmed rateable	Require more investigation	Balance for review	Nett $ rates changes
ACC	3,816	2,610	1,865	8	737	1,206	5,468
MCC	2,495	2,113	1,636	1	476	382	24,204
NSCC	1,770	1,436	1,182	2	252	334	310,000
WCC	1,123	911	664	3	244	212	4,910
RDC	1,412	1,006	785	-	221	406	-
Total	10,616	8,076	6,132	14	1,930	2,540	344,582

8. All of the properties which were due to be reviewed by 30 June 2016 have been reviewed; however, there are 1,930 properties which require further in-depth investigation and/or inspection. This is time consuming and is the reason why the project will not be completed until February 2018.

9. A detailed breakdown of the findings by property type is as follows:

· Private ownership

o 308 properties identified as non-rateable

o 271 have been confirmed as having non-rateable use or appear to be used for education/religion/health purposes and will be reviewed when these categories are reviewed

o 37 require inspection to confirm their status

· Auckland Council properties

o 6,976 properties identified as non-rateable

o The majority are parks and reserves

o 5,639 have been identified as correctly non-rateable

o 382 already have a split assessment for rateable and non-rateable use; or are subject to lease agreements which will need to be reviewed separately

o The remaining 955 require further investigation

o At this stage, no properties have been identified as incorrectly non-rateable

· Education properties

o 966 properties identified as non-rateable

o 451 state owned preschool/primary/secondary institutions have been identified as correctly non-rateable

o The next phase will be to review private schools and tertiary institutions to ensure they meet the provisions of the Act

10. The focus for the team for the next tranche of properties will be to confirm the status of religious properties. There are 1,046 properties and most will require an inspection.

11. Following discussion on businesses operating at residential properties at the 19 May 2016 Finance and Performance Committee meeting, our contract valuers have specifically been looking for houses with signage indicating a property may be used for purposes other than a residence. This occurs most frequently in ‘mixed use’ locations often on the fringe of commercial town centres and along main arterial roads.

12. This is also something all the commercial valuers watch out for when out inspecting. The majority of these do get picked up through the consenting process e.g. building consent for fit out of a dentistry practice. However, for others there has been no notified ‘trigger’ to prompt an inspection. As an example an accounting/legal practice may lease a house and not need to make any structural changes. There is no ‘trigger’ to identify a change in land use from residential to offices.

Consideration

Local board views and implications

13. The previous quarterly report was forwarded to all local boards for information, requesting their support in identifying non-rateable properties for review.

Māori impact statement

14. The rules for rating Māori customary land, land that is set apart under section 338 of Te Ture Whenua Māori Act 1993 and Māori freehold land are more complex than for general land. Staff are undertaking a separate review of Māori land data that will be completed by 30 June 2018.

15. Māori, as stakeholders in the council are affected and have an interest in any review of non-rateable land.

Implementation

16. There will be cases where a property has both rateable and non-rateable components. If a property (or a portion of) that was classified as non-rateable is found to be rateable, the council can recover rates from the beginning of the current rating year. If a property (or a portion of) that was classified as rateable is found to be non-rateable, the council is liable to refund rates paid for the previous five rating years.

17. A communication plan has been put in place to liaise with impacted ratepayers.

Attachments

There are no attachments for this report.

Signatories

Author

Deborah Acott – Manager Rates and Valuations

Authorisers

John Bishop - Treasurer & GM Transaction Services

Sue Tindal - Group Chief Financial Officer

Chairperson	Cr Penny Webster
Deputy Chairperson	Cr Ross Clow
Members	Cr Anae Arthur Anae	Cr Calum Penrose
	Cr Cameron Brewer	Cr Dick Quax
	Mayor Len Brown, JP	Cr Sharon Stewart, QSM
	Cr Dr Cathy Casey	Member David Taipari
	Cr Bill Cashmore	Member John Tamihere
	Cr Linda Cooper, JP	Cr Sir John Walker, KNZM, CBE
	Cr Chris Darby	Cr Wayne Walker
	Cr Alf Filipaina	Cr John Watson
	Cr Hon Christine Fletcher, QSO	Cr George Wood, CNZM
	Deputy Mayor Penny Hulse
	Cr Denise Krum
	Cr Mike Lee

Author	Mike Giddey - Democracy Advisor
Authoriser	Sue Tindal - Group Chief Financial Officer