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MOVED by Mayor P Goff, seconded by Cr R Clow:
Final Annual Budget 2017/2018 – Mayoral
Proposal
That the Governing Body:
a) agree
to an average increase to both the fixed and variable
portions of the general rate for existing ratepayers of 2.5 per cent for the
final Annual Budget 2017/18.
b) agree
to amend the council’s Revenue and Financing Policy to
pause the Long-Term Differential Strategy for the 2017/18 year and
extend the time to reach the target proportion of 25.8 per cent of rates from
the business sector until 2037/38.
c) as
part of the final Annual Budget 2017/18, agree to a targeted rate on
commercial accommodation providers to fund a proportion of the visitor
attraction and major events expenditure of Auckland Tourism, Events and
Economic Development (ATEED) as follows:
i) the
amount of the targeted rate is set at 50 per cent of Auckland Tourism, Events
and Economic Development’s budgeted expenditure on visitor
attraction and major events, being $13.45 million
ii) in
consideration of the distribution of benefits and affordability for
commercial accommodation providers, they be categorised by type into three
tiers:
· Tier
1 comprising hotels and serviced apartments
· Tier
2 comprising motels, lodges and motel-like accommodation in campgrounds
· Tier
3 comprising other accommodation providers such as backpackers, campgrounds
and hostels
iii) in
further consideration of the distribution of benefits for commercial
accommodation providers, they be categorised by location into three zones:
· Zone
A comprising the local board areas of Albert-Eden, Devonport-Takapuna,
Mangere-Otahuhu, Maungakiekie-Tamaki, Orakei, Waitemata
· Zone
B comprising the local board areas of Henderson-Massey, Hibiscus and Bays,
Howick, Kaipataki, Manurewa, Otara-Papatoetoe, Puketapapa, Upper Harbour,
Waiheke, Whau
· Zone
C comprising the local board areas of Franklin, Great Barrier, Papakura,
Rodney and Waitakere Ranges
iv) the
targeted rate is applied on a differential basis based on the type and
location as set out in the following table:
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Differential ratios
|
Provider type
|
|
Hotels and
serviced
apartments
|
Motels and
Lodges
(including motel-like accommodation at campgrounds)
|
Other
(Backpackers, campgrounds, hostels)
|
|
Location
|
Zone A
|
1.0
|
0.6
|
0.0
|
|
Zone B
|
0.5
|
0.3
|
0.0
|
|
Zone C
|
0.0
|
0.0
|
0.0
|
Note: The change from the
original proposal is set out in paragraph 21.
v) the council will consider applications for remission under its
existing rate remission scheme (Remission of rates for miscellaneous
purposes), for example where the owner/ratepayer are separate from the
accommodation operator and the nature of the relationship between the parties
means the targeted rate is unable to be passed on to the accommodation
operator
vi) staff
report back on the development of a more targeted remission scheme as part of
the Long-term Plan 2018-2028
vii) staff
report back on a proposal for 2018/19 for the inclusion of informal
accommodation providers currently being rated as residential properties
viii) staff report
back on a proposal for the introduction of alternative governance
arrangements of Auckland Tourism, Events and Economic Development, including
greater participation for commercial accommodation providers appropriate to
their level of funding of Auckland Tourism, Events and Economic Development’s
activities
ix) the
council’s Revenue and Financing Policy be amended to
provide for targeted rates to be used to fund visitor and external relations,
destination and marketing and major events in the Economic Growth and Visitor
Economic activity
x) the
$13.45 million of general ratepayer funding no longer required to fund
Auckland Tourism, Events and Economic Development be used to fund
transport infrastructure projects, specifically mass transit to the airport
and other airport access improvement projects
xi) note
that Auckland Tourism, Events and Economic Development’s future
role and activities will be considered as part of the Long-term Plan 2018-2028
xii) note that
the Mayor is open to discussing with the industry any proposals it wishes to
put forward for an industry-led and funded regional tourism organisation as a
partial or complete alternative to using a targeted rate to fund Auckland
Tourism, Events and Economic Development’s tourism promotion activities.
d) agree
to amend the council’s Revenue and Financing Policy
to facilitate future proposals to the Governing Body on the use of targeted
rates to fund growth infrastructure.
e) agree
that the Auckland Council group implements a living wage policy over the
council term to October 2019 as follows:
i) the
rate will initially be based on the reference living wage published by the
Living Wage Movement Aotearoa New Zealand for 2017 being $20.20, and
thereafter will be calculated based on council wage inflation
ii) the
living wage applies to Auckland Council and its substantive
council-controlled organisations and excludes contractors and volunteers
iii) a
phased implementation approach be employed to ensure the greatest benefit is
received by people earning lower than a living wage in priority to addressing
relativity issues
iv) a
complementary Trainee, Cadet, Intern and Apprenticeship rate is developed
v) the
operating budget for the final Annual Budget 2017/18 include costs of $1.9 million
for living wage policy implementation and that this be offset by savings.
f) agree
to the operating and capital budgets incorporating the above rating and other
changes and the following other key changes to rates policy and capital and
operating budgets for the final Annual Budget 2017/18 as below:
i) $500,000
operating budget to fund collaborations on homelessness
ii) $10
million of Auckland Transport operating budget to fund mass transit network
investigations
iii) updated
capital budgets for City Rail Link which reflect an increase of
$240 million in council’s share of net capital investment by 2024/25
(revised total council investment of $1.7 billion)
iv) an
additional $161 million capital budget to accelerate transport investment
(including $30 million for mass transit land acquisition)
v) $7.2
million of additional capital budget for works on either side of the Skypath
construction
vi) $10
million of capital budget for cruise ship infrastructure (inner dolphin)
vii) $20
million of stormwater capital budget brought forward from future years to
address weather event resilience
viii) additional
capital budget of $10.2 million for Regional Facilities Auckland to construct
a shared plant facility for services to the Town Hall and Aotea Centre
ix) waste
management services and charges be standardised in accordance with staff
recommendations
x) Manukau,
Uptown and Wiri business improvement districts be expanded in accordance with
staff recommendations.
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