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Ōtara-Papatoetoe
Local Board
02 May 2017
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Annual
Budget 2017/2018
File No.: CP2017/06971
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 Ōtara-Papatoetoe
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 C).
c) confirm the local board’s key advocacy priority for the
organisation to work on: discontinue the board’s payment of interest on
borrowing for Colin Dale Park (first initiative, Attachment C)
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 approves the new boundaries for the Wiri and Manukau
business improvement districts (BIDs).
f) 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 Ōtara-Papatoetoe 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 $29.37 including GST, based on current cost estimates and the
number of separately used or inhabited parts of a residential property in the
Ōtara-Papatoetoe Local Board area.
g) recommend $30,000 of 2016/2017 Locally
Driven Initiatives operational expenditure be deferred to 2017/2018.
h) note the public feedback on the draft annual plan, and refer all
feedback to relevant council departments for their consideration and
reporting as appropriate, and
i) refer
to Community Services Department (Parks Sport and Recreation) and Auckland
Transport the feedback received about Swaffield Road litter, general
untidiness and suggested development for the adjoining reserve;
ii) include
the Papatoetoe Museum and Arts facility project into the board’s
advocacy list
iii) refer
to the Community Services Department (Parks Sport and Recreation) and
Auckland Transport the feedback received about the trees in Flatbush Road,
and request staff to take all necessary steps to avoid any nuisance to
residents from a build-up of fallen leaves this autumn.
iv) refer
to Community Services Department (Community Empowerment Unit) the feedback
received on a seniors symposium, as the local board would like to progress
this concept in 2017/2018.
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Comments
Consultation
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).
5. The board discussed the feedback received at its workshop on 26
April 2017. Responses to feedback on specific local issues were
discussed, and these responses are included in the recommendation above.
Locally Driven Initiatives (LDI)
6. 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.
7. 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 workshop on 26 April, members discussed
the need to defer $30,000, being the unspent budget allocated to develop a
Papatoetoe skills shed.
8. Key
information of the funding of each activity is provided in Attachment B.
Advocacy
9. 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.
10. 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.
11. The
board resolved its list of advocacy initiatives in December 2016, for potential
inclusion in the local board agreement. At a workshop on 26 April 2017
board members refined the list in the light of public feedback received (adding
an item about the Papatoetoe Museum and Arts facility) and recent discussion of
priorities. The amended advocacy list is in Attachment C, and can now be
included in the local board agreement.
12. The
Colin Dale Park item (below) was identified at the workshop 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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Discontinue
paying interest on borrowing for Colin Dale Park
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Review the
ongoing liability of $280k pa for debt servicing, because it is an unfair
burden on the board (16% LDI), reducing the board’s place making and
community programmes, and the rest of Auckland should be contributing.
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Discuss with
GB what funding or alternative options are available to support this project.
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Regional issues
13. 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).
14. At
a workshop on 26 April 2017, board members developed feedback on three issues
for consideration by the Finance and Performance Committee:
a) 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;
b) Paying
for housing infrastructure: the money raised should be fairly allocated
to infrastructure within the local board’s area;
c) Paying
council staff a living wage: this proposal is supported in principle.
Local targeted rate and BID targeted rate proposals
15. 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).
16. On
18 April 2017 the board received a separate report on the BID rates. The
board recommended to the governing body to strike the targeted rates for the
Greater East Tamaki, Hunters Corner, Old Papatoetoe, Manukau Central and Otara
BID programmes.
17. A
separate issue needing consideration is the BID expansion proposals for Manukau
Central and Wiri BIDs. In both cases, a majority of affected ratepayers
supported these proposals in ratepayers’ polls. The board referred
to the BID expansion proposals and invited feedback from the public in its
annual plan consultation. Feedback was received from 50 people on this
proposal. Of the people stating a definite position, the majority were in
favour of the BID expansions: 25 in favour, 4 against and 21 not sure.
The board now needs to make a recommendation to the Governing Body to finalise
the proposals.
Swimming pool funding - targeted rate
18. The
local board’s consultation documents highlighted the proposal to continue
with the policy to enable adults to use the Ōtara and Papatoetoe 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.
19. The
targeted rate proposal drew one submission. This submitter was
supportive, stating that the pools should be 100% free. It is recommended
that the board ask the governing body to proceed with the rate in 2017/18, now
estimated at $29.37 per
household.
Consideration
Local board views and implications
20. Local
board decisions and feedback are being sought in this report.
21. 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
22. 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
23. 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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Attachment A - Consultation feedback report
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13
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b⇩
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Attachment B - LDI schedule for 2017/18
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19
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c⇩ 
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Attachment C - LDI Opex Advocacy
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21
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Signatories
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Authors
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Neil Taylor - Senior Local Board Advisor
Faithe Smith - Lead Financial Advisor
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Authorisers
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Christine Watson, Manager Financial Advisory Services
– Local Boards
Karen Lyons, General Manager Local Board Services
Carol McKenzie-Rex - Relationship Manager
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