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Māngere-Ōtāhuhu
Local Board
03 May 2017
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Annual
Budget 2017/2018
File No.: CP2017/07391
Purpose
1. This
report seeks decisions and input from local boards on a range of annual budget
related matters, including locally driven initiatives (LDI), advocacy, regional
financial policy issues and other rate proposals.
Executive
summary
2. This
report seeks decisions and input from
local boards on a range of annual budget related matters, including:
a) making
decisions on:
i. final
LDI budgets by project, within funding envelopes.
ii. advocacy.
b) providing
any feedback on regional issues, including:
i. rates
increases.
ii. rating
stability (regarding proposals that both businesses and
residential ratepayers receive the same rates increase).
iii. paying
for tourism promotion.
iv. paying
for housing infrastructure (proposed changes to the Revenue and Financing
policy to allow for the use of targeted rates,
alongside existing growth charges, to fund infrastructure for new houses).
v. paying
council staff a living wage.
vi. other
changes for 2017/2018 (regarding waste management and
charges, the mass transit network, SkyPath
implementation, collaborations on reducing homelessness and the rural fire
service).
c) making
recommendations to the governing body on other financial matters such as:
i. any
new/amended Business Improvement District (BID) targeted rates.
ii. any
new/amended local targeted rate proposals.
iii.proposed LDI
capital projects outside local boards’ decision-making responsibility.
iv. proposed LDI
opex to capex conversions.
v. release
of local board specific reserve funds.
vi. LDI opex
projects for deferral to 2017/2018.
3. Local board
views on these matters will be considered in discussions between the local
boards and the Finance and Performance Committee on 9 May; and by the governing
body prior to adopting the Annual Budget 2017/2018.
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Recommendation/s
That the Māngere-Ōtāhuhu
Local Board:
a) approve
the final 2017/2018 Locally Driven Initiative budgets by project, within
funding envelopes (Attachment B).
b) agree
the advocacy initiatives for inclusion in the 2017/2018 Local Board Agreement
(Attachment D).
c) confirm
the local board’s key advocacy priority for the organisation to work on
as follows: develop the Mangere East precinct as a priority to enhance this
centre as a thriving and liveable community (first initiative Attachment D).
d) confirm
the board’s views on these regional financial policy issues:
i) paying
for tourist promotion: tourist operators should be contributing to the
infrastructure costs to council that arise from tourism, and the money raised
should be fairly allocated to infrastructure within the local board’s
area;
ii) paying
for housing infrastructure: the money raised should be fairly allocated to
infrastructure within the local board’s area;
iii) paying
council staff a living wage: the board supports this proposal in
principle.
e) recommend
that the governing body adopts for inclusion in the Annual Plan 2017/2018 a
targeted rate set as a uniform charge per separately used or inhabited part
of a property, on residential properties in the Mangere-Otahuhu Local Board
area, for the purpose of fully subsidising entry to swimming pools for
persons 17 years and over. Further, that the local board notes the rate is
estimated to be $31.06 including GST, based on current cost estimates and the
number of separately used or inhabited parts of a residential property in the
Mangere-Otahuhu Local Board area.
f) recommends
$147,000 of 2016/2017 LDI opex be deferred to 2017/2018 (Attachment C).
g) note the public feedback on the draft annual plan, and refer all
feedback to relevant council departments for their consideration and
reporting as appropriate (Attachment A).
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Comments
4. Consultation
on the Annual Budget 2017/2018 took place from 27 February – 27 March
2017. The results from the consultation have been
analysed and summarised, and provided to local boards to assist with decision-making
(see Attachment A).
Locally
Driven Initiatives (LDI)
5. Local
boards are requested to agree the level of funding by project for each group of
activity. The expected delivery outcomes are further detailed in work
programmes which will be reported against throughout 2017/2018.
6. Local
boards can defer those projects that are funded by the LDI where there was an
agreed scope and cost but have not been delivered. The Local Board may
wish to resolve 2016/2017 projects that meet the criteria for deferral to
2017/2018. At the board’s workshops on 12 and 19 April 2017, members
discussed the need to defer $147,000, being the unspent budget allocated to the
projects in Attachment C.
Advocacy
7. This triennium a three year approach is proposed for considering
initiatives that local boards wish to progress that are unable to be funded by
LDI. Such an approach seeks to better utilise the annual budget, Long Term Plan
(LTP) and local board plan processes to progress and advise on a narrower range
of local board initiatives, in a more comprehensive way.
8. The
proposed new approach involves:
· As
part of the Annual Budget 2017/2018 process, local boards begin narrowing their
priorities to predominately one key advocacy initiative, and one initiative
held in common with other local boards, for further research and consideration.
· Council
departments provide local boards with information to help inform their position
on these initiatives (in essence, developing a business case for them).
· Based
on this information, local boards develop the case for their advocacy further
by testing ideas with the community in the local board plan process and other
engagement.
· Local
boards discuss priority initiatives with the Finance and Performance Committee
through the annual budget and LTP processes, supported by organisational advice
on the key initiative.
9. Local
boards resolved on their key advocacy initiatives in December 2016 (Attachment
D), for potential inclusion in their Local Board Agreements. Local boards
were requested to further consider and refine these at workshops
post-consultation, and look to identify:
· One key initiative,
and potentially one initiative held in common with other local boards, for
business case development and to progress through the annual budget, local
board plan and LTP processes.
· Other advocacy
initiatives to be included in the Local Board Agreements, as key matters of
importance to the local board.
10. The
Mangere East Precinct item (below) was identified at the 19 April 2017workshop
as the board’s key advocacy initiative for presentation to the Finance
and Performance Committee on 9 May 2017, for business case development
and to progress through the annual budget, local board plan and LTP processes:
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Māngere East Precinct: A priority
focus and initiatives to enhance this centre as a thriving, liveable
community
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The Māngere East area requires
coordinated investment for planning and implementation. The local community
facilities are rundown, old or not fit for use. A community facility needs
assessment was completed in 2015 and next steps need to be progressed. For
this, coordinated planning and investment is vital to shape a high-quality
built area for a liveable community. The local board requests the governing
body commit to capital funding through the next review of the Long-term Plan
(LTP) for delivery of the Community Facilities Network Plan.
Further, to coordinate work through
Panuku Development Auckland and Auckland Transport to focus on Māngere East
area to develop this centre as a liveable community.
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Governing Body
Panuku Development
Auckland
Auckland Transport
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Regional
issues
11. Regional
issues consulted on as part of the 2017/2018 annual budget process include
rates increases, rating stability, paying for tourism promotion, paying for
housing infrastructure, paying council staff a living wage and other changes
for 2017/2018 (regarding waste management and charges, the mass transit
network, SkyPath implementation, collaborations on reducing homelessness and
the rural fire service).
12. At
the 19 April 2017 workshop, the board members developed feedback on three
issues for consideration by the Finance and Performance Committee:
i. paying
for tourist promotion: tourist operators should be contributing to the
infrastructure costs to council that arise from tourism, and the money raised
should be fairly allocated to infrastructure within the local board’s
area;
ii. paying
for housing infrastructure: the money raised should be fairly allocated to
infrastructure within the local board’s area;
iii. paying
council staff a living wage: the board supports this proposal in
principle.
Local targeted
rate and BID targeted rate proposals
13. Local
boards are required to agree any new BID and local targeted rate proposals
(noting that any new local targeted rates and/or BIDs must have been consulted
on before they can be implemented).
14. The
Mangere-Otahuhu did not have any new BID or local targeted rate proposals in
this Annual Budget cycle.
Swimming pool funding - targeted rate
15. The
local board’s consultation documents highlighted the proposal to continue
with the policy to enable adults to use the Mangere and Otahuhu swimming pools
without charge. The rationale is that the board considers that the use of
swimming pools delivers important social and public health benefits. As in the
previous four financial years, the board proposed to fund this policy through a
targeted rate.
16. It
is recommended that the board ask the governing body to proceed with the rate
in 2017/18, now estimated at $31.06 per household.
Consideration
Local board views and implications
17. Local
board decisions and feedback are being sought in this report.
18. Local
boards play an important role in the development of the annual budget, and
provide views and information at key stages as council continues through the
annual budget process.
Māori
Impact Statement
19. Many local board decisions are of importance to and impact on Māori. Local board agreements and the
annual budget are important tools that enable and can demonstrate
council’s responsiveness to Māori. Local board plans, which were developed in 2014 through
engagement with the community including Māori, form the basis of local priorities. There is a need to continue to build relationships between local boards
and iwi, and where relevant the wider Māori community. Ongoing conversations
will assist local boards and Māori to understand each other’s
priorities and issues. This in turn can influence and encourage Māori
participation in council’s decision-making processes.
Implementation
20. Feedback
from the local boards will be provided to the Finance and Performance Committee
and governing body for consideration and adopting the Annual Budget 2017/2018.
Attachments
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No.
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Title
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Page
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a⇩ 
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Annual Budget Consultation Feedback
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13
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b⇩
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Local Driven Initiative (LDI) Opex
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23
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c⇩ 
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Locally Driven Initiative (LDI) Budgets Carried
Forward
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25
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d⇩
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Advocacy List
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27
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Signatories
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Authors
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Audrey Gan - Lead Financial Advisor Local Boards
Daniel Poe - Local Board Advisor
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Authorisers
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Christine Watson - Manager Financial Advisory Services
- Local Boards
Carol McKenzie-Rex - Relationship Manager
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