Finance and Performance Committee

 

OPEN MINUTES

 

 

 

Minutes of a meeting of the Finance and Performance Committee held in the Reception Lounge, Auckland Town Hall, 301-305 Queen Street, Auckland on Monday, 11 December 2017 at 9.38am.

 

present

 

Chairperson

Cr Ross Clow

 

Deputy Chairperson

Cr Desley Simpson, JP

 

Members

Cr Dr Cathy Casey

 

 

Deputy Mayor Bill Cashmore

 

 

Cr Fa’anana Efeso Collins

Until 2.29pm, Item 10

 

Cr Linda Cooper, JP

 

 

Cr Chris Darby

 

 

Cr Alf Filipaina

 

 

Cr Hon Christine Fletcher, QSO

 

 

Mayor Hon Phil Goff, CNZM, JP

 

 

Cr Richard Hills

 

 

IMSB Member Terrence Hohneck

 

 

Cr Penny Hulse

 

 

Cr Mike Lee

 

 

Cr Daniel Newman, JP

 

 

Cr Dick Quax

 

 

Cr Greg Sayers

 

 

Cr Sharon Stewart, QSM

 

 

IMSB Chair David Taipari

From 9.42am, Item 9

 

Cr Sir John Walker, KNZM, CBE

From 10.00am, Item 10

 

Cr Wayne Walker

From 9.54am, Item 10

 

Cr John Watson

From 9.43am, Item 10

 

 


Finance and Performance Committee

11 December 2017

 

 

 

1          Apologies

 

Resolution number FIN/2017/182

MOVED by Chairperson R Clow, seconded by Cr E Collins:  

That the Finance and Performance Committee:

a)         accept the apology from Cr W Walker for lateness.

CARRIED

Note: A subsequent apology from Cr E Collins was received for early departure.

 

 

2          Declaration of Interest

 

There were no declarations of interest.

 

 

3          Confirmation of Minutes

 

Resolution number FIN/2017/183

MOVED by Deputy Chairperson D Simpson, seconded by Chairperson R Clow:  

That the Finance and Performance Committee:

a)         confirm the ordinary minutes of its meeting, held on Thursday, 30 November 2017 as a true and correct record.

CARRIED

 

 

4          Petitions

 

There were no petitions.

 

 

5          Public Input

 

There was no public input.

 

 

6          Local Board Input

 

There was no local board input.

 

7          Extraordinary Business

 

There was no extraordinary business.

 

 

8          Notices of Motion

 

There were no notices of motion.

 


 

 

9

10-year Budget 2018-2028 - Process overview

 

IMSB Member D Taipari entered the meeting at 9.42 am.

 

 

 

Resolution number FIN/2017/184

MOVED by Chairperson R Clow, seconded by Deputy Chairperson D Simpson:  

That the Finance and Performance Committee:

a)      note the contents of this report, which sets the context for the other reports and decisions on today’s agenda.

CARRIED

 

 

10

10-year Budget 2018-2028 – Mayoral Proposal items for consultation

 

Cr J Watson entered the meeting at 9.43am.

Cr W Walker entered the meeting at 9.54am.

Cr J Walker entered the meeting at 10.00am.

Cr L Cooper left the meeting at 11.08am.

Cr D Quax left the meeting at 11.08am

Cr P Hulse left the meeting at 11.08am.

Cr P Hulse returned to the meeting at 11.14am.

Cr L Cooper returned to the meeting at 11.14am.

Cr D Quax returned to the meeting at 11.14am.

Cr W Walker left the meeting at 11.30am.

 

 

 

The transition policy was circulated prior to the meeting.  A copy has been placed on the official minutes and is available on the Auckland Council website as minutes attachments.

 

 

 

MOVED by Mayor P Goff, seconded by Chairperson R Clow:  

That the Finance and Performance Committee agree to recommend to the Governing Body that the 10-year Budget 2018-2028 consultation document include the following items from the Mayoral Proposal:

a)      introduction of a regional fuel tax to fund transport infrastructure and activities;

b)      average general rates rises of 2.5% for the first two years and 3.5% for each year after that;

c)      the Uniform Annual General Charge increases in line with the general rates increase;

d)      resumption of the Long-term Differential Strategy relating to business and residential rates;

e)      introduction of a water quality targeted rate to raise $400 million to fund additional expenditure for the Water Quality Improvement Programme;

f)       introduction of a natural environment targeted rate to raise either:

i)        an additional $123 million (total $220 million) to fund additional projects to protect our natural environment and tackle Kauri dieback disease; or

ii)       an additional $279 million (total $376 million) for Kauri dieback and targeted ecological protection”;

g)      changes to the rating of the online accommodation sector, including the introduction of an additional rating differential for properties with a medium level of occupancy;

h)      disestablishment of the Council-controlled organisation Auckland Council Investments Limited with the investments in Auckland International Airport Limited and Ports of Auckland Limited to be transferred to Council parent.

 

 

 

The meeting was adjourned at 11.35am and reconvened at 11.49am.

 

Cr Collins, Cr Darby, Cr Sir J Walker and Cr W Walker were not present.

 

 

 

Cr E Collins returned to the meeting at 11.52am

Cr Sir J Walker returned to the meeting at 11.56am

Cr C Darby returned to the meeting at 11.57am

Cr W Walker returned to the meeting at 11.59am

 

 

 

MOVED by Cr C Fletcher, seconded by Cr G Sayers an amendment by way of addition:  

i)          introduction of the landlord port model for Ports of Auckland Limited (POAL) and simultaneous recapitalisation to provide the best balance between enabling POAL to efficiently handle Auckland’s growing freight needs, achieve its strategic growth objectives, and help Council to achieve its broader goals with respect to the city’s development. This model recognises that the port land is a strategic asset and will be held in perpetuity for the people of Auckland.

 

A division was called for, voting on which was as follows:

For

Cr C Fletcher

Cr D Newman

Cr D Quax

Cr G Sayers

Deputy Chairperson D Simpson

Against

Cr C Casey

Deputy Mayor B Cashmore

Chairperson R Clow

Cr E Collins

Cr L Cooper

Cr C Darby

Cr A Filipaina

Mayor P Goff

Cr R Hills

IMSB Member T Hohneck

Cr P Hulse

Cr M Lee

Cr S Stewart

IMSB Chair D Taipari

Cr J Walker

Cr W Walker

Cr J Watson

Abstained

 

The motion was declared lost by 5 votes to 17.

 

 

 

The meeting adjourned at 1.17pm and reconvened at 1.50pm.

 

The meeting adjourned at 1.55pm in order to open the Governing Body meeting and reconvened at 2.01pm.

 

Cr M Lee was not present.

 

 

 

Cr M Lee returned to the meeting at 2.05pm.

 

 

 

Additional material was tabled in support of the Natural Environment Targeted Rate: Option D - $279 million over LTP period. A copy has been placed on the official minutes and is available on the Auckland Council website as a minutes attachment.

 

 

 

MOVED by Deputy Chairperson D Simpson, seconded by Cr L Cooper as an amendment by way of addition to clauses e) and f):  

Option for extra money to fund water quality improvement and natural environment to be consulted on as a targeted rate set on capital value or a fixed levy approximately equal to the current interim transport levy which is being removed.

 

A division was called for, voting on which was as follows:

For

Cr L Cooper

Cr C Fletcher

Cr D Quax

Cr G Sayers

Deputy Chairperson D Simpson

Cr S Stewart

Against

Cr C Casey

Deputy Mayor B Cashmore

Chairperson R Clow

Cr E Collins

Cr C Darby

Cr A Filipaina

Mayor P Goff

Cr R Hills

IMSB Member T Hohneck

Cr P Hulse

Cr M Lee

Cr D Newman

IMSB Chair D Taipari

Cr J Walker

Cr W Walker

Cr J Watson

Abstained

 

The motion was declared lost by 6 votes to 16.

 

 

 

Cr E Collins left the meeting at 2.29pm.

 

 

MOVED by Cr A Filipaina, seconded by Cr P Hulse as an amendment by addition to clause f):  

iii)         an additional $356 million (total $453 million) for an expanded ecosystems and species protection, including kauri dieback protection.

 

A division was called for, voting on which was as follows:

For

Cr C Casey

Cr L Cooper

Cr A Filipaina

Cr C Fletcher

Cr R Hills

Cr P Hulse

Cr M Lee

Cr W Walker

Cr J Watson

Against

Deputy Mayor B Cashmore

Chairperson R Clow

Cr C Darby

Mayor P Goff

IMSB Member T Hohneck

Cr D Newman

Cr D Quax

Cr G Sayers

Deputy Chairperson D Simpson

Cr S Stewart

IMSB Chair D Taipari

Cr J Walker

Abstained

 

The motion was declared lost by 9 votes to 12.

 

 

 

The meeting adjourned at 3.25pm and reconvened at 3.29pm.

 

IMSB Chair D Taipari was not present.

 

IMSB Chair D Taipari returned to the meeting at 3.34pm.

 

 

 

Resolution number FIN/2017/185

MOVED by Chairperson R Clow, seconded by Cr W Walker:  

That the Finance and Performance Committee:

a)         agree at 3.25pm pursuant to standing order 1.1.3 that an extension of time until the business of the meeting is complete be granted.

CARRIED

 

 

 

The Chairperson put the substantive motion in parts.

 

 

 

Resolution number FIN/2017/186

MOVED by Mayor P Goff, seconded by Chairperson R Clow:  

That the Finance and Performance Committee agree to recommend to the Governing Body that the 10-year Budget 2018-2028 consultation document include the following items from the Mayoral Proposal:

a)      introduction of a regional fuel tax to solely fund transport infrastructure and services.

CARRIED

 

 

 

Resolution number FIN/2017/187

MOVED by Mayor P Goff, seconded by Chairperson R Clow:  

That the Finance and Performance Committee agree to recommend to the Governing Body that the 10-year Budget 2018-2028 consultation document include the following items from the Mayoral Proposal:

b)        average general rates rises of 2.5% for the first two years and 3.5% for each year after that.

CARRIED

 

 

 

Resolution number FIN/2017/188

MOVED by Mayor P Goff, seconded by Chairperson R Clow:  

That the Finance and Performance Committee agree to recommend to the Governing Body that the 10-year Budget 2018-2028 consultation document include the following items from the Mayoral Proposal:

c)         the Uniform Annual General Charge increases in line with the general rates increase.

CARRIED

 

 

 

Resolution number FIN/2017/189

MOVED by Mayor P Goff, seconded by Chairperson R Clow:  

That the Finance and Performance Committee agree to recommend to the Governing Body that the 10-year Budget 2018-2028 consultation document include the following items from the Mayoral Proposal:

d)        resumption of the Long-term Differential Strategy relating to business and residential rates.

CARRIED

 

 

 

Resolution number FIN/2017/190

MOVED by Mayor P Goff, seconded by Chairperson R Clow:  

That the Finance and Performance Committee agree to recommend to the Governing Body that the 10-year Budget 2018-2028 consultation document include the following items from the Mayoral Proposal:

e)         introduction of a water quality targeted rate to raise $400 million to fund additional expenditure for the Water Quality Improvement Programme.

CARRIED

 

 

 

Resolution number FIN/2017/191

MOVED by Mayor P Goff, seconded by Chairperson R Clow:  

That the Finance and Performance Committee agree to recommend to the Governing Body that the 10-year Budget 2018-2028 consultation document include the following items from the Mayoral Proposal:

f)       introduction of a natural environment targeted rate to raise either:

i)       an additional $123 million (total $220 million) to fund additional projects to protect our natural environment and tackle Kauri dieback disease; or

ii)      an additional $279 million (total $376 million) for Kauri dieback and targeted ecological protection”.

CARRIED

 

 

 

Resolution number FIN/2017/192

MOVED by Mayor P Goff, seconded by Chairperson R Clow:  

That the Finance and Performance Committee agree to recommend to the Governing Body that the 10-year Budget 2018-2028 consultation document include the following items from the Mayoral Proposal:

g)      changes to the rating of the online accommodation sector, including the introduction of an additional rating differential for properties with a medium level of occupancy.

CARRIED

 

 

 

MOVED by Mayor P Goff, seconded by Chairperson R Clow:  

h)         disestablishment of the Council-controlled organisation Auckland Council Investments Limited with the investments in Auckland International Airport Limited and Ports of Auckland Limited to be transferred to Council parent.

A division was called for, voting on which was as follows:

For

Cr C Casey

Deputy Mayor B Cashmore

Chairperson R Clow

Cr C Darby

Cr A Filipaina

Mayor P Goff

Cr R Hills

IMSB Member T Hohneck

Cr P Hulse

IMSB Member D Taipari

Against

Cr L Cooper

Cr C Fletcher

Cr M Lee

Cr D Newman

Cr D Quax

Cr G Sayers

Deputy Chairperson D Simpson

Cr S Stewart

Cr J Walker

Cr W Walker

Cr J Watson

Abstained

 

The motion was declared lost by 10 votes to 11.

 

Attachments

a     11 December 2017, Finance and Performance Committee, Item 10 10-year Budget 2018-2028 - Mayoral Proposal items for consultation - Transition Policy

b     11 December 2017, Finance and Performance Committee, Item 10 10-year Budget 2018-2028 - Mayoral Proposal items for consultation - Natural environment information

 

 

The meeting adjourned at 4.34pm and reconvened at 4.49pm.

Cr W Walker was not present.

 

Cr W Walker returned to the meeting at 4.52pm.

 

 

11

10-year Budget 2018-2028 - Other matters for consideration

 

MOVED by Chairperson R Clow, seconded by Cr W Walker:  

That the Finance and Performance Committee recommend to the Governing Body that the Consultation Document and Supporting Information include the following items for consultation:

Waste Management

a)      To fund the kerbside food waste collection service through a $67 increase to the waste management targeted rate, to be introduced in Papakura in 2018/2019 and in the remainder of urban Auckland (excluding the Hauraki Gulf Islands) from 2019/2020.

b)      User pays charges for refuse collection in the former Auckland City and Manukau City areas of approximately $3.80 per 120 litre bin to replace the existing refuse targeted rates in those areas from 2020/2021.

Regulatory Fees and Charges

c)      A new fee for “Deemed Permitted Boundary Activities” based on a deposit of $400 and standard hourly rates for work completed.

d)      A new fee for “Permitted Plantation Forestry Activities” based on a deposit of $400 and standard hourly rates for work completed.

Land Advisory Services Fees and Charges

e)      Introduction of a new charge for land advisory services based on deposits between $570 and $1410 and hourly rates between $85 and $180.

Business Improvement District targeted rate

f)       Expansion of the Papakura Business Improvement District (BID)

Rodney Local Board targeted rate

g)      A targeted rate of $150 per separately used or inhabited part of a rating unit within the Rodney Local Board area, to fund $41 million of transport improvements in the Rodney Local Board area over the next ten years

Budgets

h)      Indicative budgets to support consultation based on the Mayoral Proposal and amended by decisions of this committee and the audit finalisation process.

10-year Budget policies

i)        Local Board Funding, Revenue and Financing, and CCO Accountability Policies

 

 

 

Resolution number FIN/2017/194

MOVED by Cr D Newman, seconded by Cr C Fletcher as an amendment by addition to the Regulatory Fees and Charges:  

e)         abolishment of the baby cremation (up to 1-year-old) fee for council crematoria.

CARRIED

 

 

 

Note: IMSB Chair D Taipari and IMSB Member T Hohneck wished their abstention to be noted.

 

 

 

The Chairperson put the substantive motion in parts.

 

 

 

Resolution number FIN/2017/195

MOVED by Chairperson R Clow, seconded by Cr W Walker:  

That the Finance and Performance Committee recommend to the Governing Body that the Consultation Document and Supporting Information include the following items for consultation:

Waste Management

a)      To fund the kerbside food waste collection service through a $67 increase to the waste management targeted rate, to be introduced in Papakura in 2018/2019 and in the remainder of urban Auckland (excluding the Hauraki Gulf Islands) from 2019/2020.

CARRIED

 

Pursuant to Standing Order 1.8.6 the following councillors requested their dissenting votes be recorded:

·         Cr D Quax

·         Cr S Stewart

·         Cr G Sayers

·         CR D Simpson

 

 

 

 

 

 

Resolution number FIN/2017/196

MOVED by Chairperson R Clow, seconded by Cr W Walker:  

That the Finance and Performance Committee recommend to the Governing Body that the Consultation Document and Supporting Information include the following items for consultation:

b)         User pays charges for refuse collection in the former Auckland City and Manukau City areas of approximately $3.80 per 120 litre bin to replace the existing refuse targeted rates in those areas from 2020/2021.

CARRIED

 

 

 

Pursuant to Standing Order 1.8.6 Cr D Simpson requested her dissenting vote be recorded.

 

 

 

Resolution number FIN/2017/197

MOVED by Chairperson R Clow, seconded by Cr W Walker:  

That the Finance and Performance Committee recommend to the Governing Body that the Consultation Document and Supporting Information include the following items for consultation:

Regulatory Fees and Charges

c)      A new fee for “Deemed Permitted Boundary Activities” based on a deposit of $400 and standard hourly rates for work completed.

d)      A new fee for “Permitted Plantation Forestry Activities” based on a deposit of $400 and standard hourly rates for work completed.

e)      abolishment of the baby cremation (up to 1-year-old) fee for council crematoria.

Land Advisory Services Fees and Charges

f)       Introduction of a new charge for land advisory services based on deposits between $570 and $1410 and hourly rates between $85 and $180.

Business Improvement District targeted rate

g)      Expansion of the Papakura Business Improvement District (BID)

Rodney Local Board targeted rate

h)      A targeted rate of $150 per separately used or inhabited part of a rating unit within the Rodney Local Board area, to fund $41 million of transport improvements in the Rodney Local Board area over the next ten years

Budgets

i)       Indicative budgets to support consultation based on the Mayoral Proposal and amended by decisions of this committee and the audit finalisation process.

10-year Budget policies

j)       Local Board Funding, Revenue and Financing, and CCO Accountability Policies.

CARRIED

 

 

12

Local rates pilot

 

Resolution number FIN/2017/198

MOVED by Cr C Casey, seconded by Deputy Mayor B Cashmore:  

That the Finance and Performance Committee:

a)      agree not to include a local rates pilot as part of the Long-term Plan 2018-2028

b)      note that further work on local rates will be undertaken:

i)       in light of changes to rates brought about by the 2017 revaluation, and

ii)      to further discussions with local boards explaining the opportunities and impacts of the local rates model.

CARRIED

 

 

13        Consideration of Extraordinary Items

 

There were no extraordinary items.   

 

 

 

 

5.44pm                                               The Chairperson thanked Members for their attendance and attention to business and declared the meeting closed.

 

CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Finance and Performance Committee HELD ON

 

 

 

DATE:.........................................................................

 

 

 

CHAIRPERSON:........................................................