2 Apologies
At the close of the agenda no apologies had been received.
3 Declaration
of Interest
Members are reminded of the need to be vigilant to stand aside from
decision making when a conflict arises between their role as a member and any
private or other external interest they might have.
4 Confirmation
of Minutes
|
The minutes of the 16 November 2017
business meeting will be confirmed at the business meeting of 14 December
2017.
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5 Leave of Absence
At the close of
the agenda no requests for leave of absence had been received.
6 Acknowledgements
At the close of the agenda no requests for acknowledgements had been
received.
7 Petitions
At the close of the agenda no requests to present petitions had been
received.
8 Deputations
Standing Order
3.20 provides for deputations. Those applying for deputations are required to
give seven working days notice of subject matter and applications are approved
by the Chairperson of the Rodney Local Board. This means that details relating
to deputations can be included in the published agenda. Total speaking time per
deputation is ten minutes or as resolved by the meeting.
At the close
of the agenda no requests for deputations had been received.
9 Public Forum
A period of
time (approximately 30 minutes) is set aside for members of the public to
address the meeting on matters within its delegated authority. A maximum of 3
minutes per item is allowed, following which there may be questions from members.
At the close of the agenda no requests for public forum had been
received.
10 Extraordinary Business
Section 46A(7) of the Local Government Official Information and
Meetings Act 1987 (as amended) states:
“An item that is not on the agenda for a meeting may be dealt
with at that meeting if-
(a) The
local authority by resolution so decides; and
(b) The
presiding member explains at the meeting, at a time when it is open to the
public,-
(i) The reason why
the item is not on the agenda; and
(ii) The
reason why the discussion of the item cannot be delayed until a subsequent
meeting.”
Section 46A(7A) of the Local Government Official Information and
Meetings Act 1987 (as amended) states:
“Where an item is not on the agenda for a meeting,-
(a) That item
may be discussed at that meeting if-
(i) That
item is a minor matter relating to the general business of the local authority;
and
(ii) the
presiding member explains at the beginning of the meeting, at a time when it is
open to the public, that the item will be discussed at the meeting; but
(b) no
resolution, decision or recommendation may be made in respect of that item
except to refer that item to a subsequent meeting of the local authority for
further discussion.”
11 Notices of Motion
There were no
notices of motion.
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Rodney Local
Board
05 December
2017
|
|
Rodney Local
Board Transport Targeted Rate
File No.: CP2017/25526
Purpose
1. To provide advice on funding
options for a local targeted rate to support additional transport investment in
the Rodney Local Board area.
Executive
summary
2. To
accelerate improvement in the transport services in the Rodney Local Board area
it is proposed to introduce a targeted rate to raise $41 million over ten years
to fund:
· Increased frequency of the Huapai to Westgate bus service
(effectively providing a 15- minute service out of Huapai, in the peak)
· Bus service from Riverhead to Westgate
· Huapai Park and Ride (investigation)
· Warkworth Park and Ride
· Proposed seal extension programme
· Proposed footpath programme.
3. Officers
propose a fixed rate of $150 per separately used or inhabited part of a rating
unit[1] (SUIP) as the primary benefits manifest in terms of improvement to
personal transport options and outcomes and residential amenity.
Accordingly the benefits will not differ materially between types of
property. The projects are relatively evenly spread over the region and
therefore all properties should share the costs.
4. Consideration was given to
three alternatives:
· General rates – not appropriate to fund projects
not presently in the Regional land transport plan and benefiting only part of
the region
· Differentiated geographically within Rodney Local Board
area
‒ investment distribution varies across local board
subdivisions
‒ projects are reasonably spread across region providing
benefits to all areas (subdivisions are electoral boundaries and don’t
reflect transport benefit distribution)
· Differentiated targeted rate on business properties
‒ businesses can expense income tax and claim back GST
– equivalent to a differential of 1.6 times the residential rate
‒ businesses do not benefit more than non-business properties
and may benefit less
· Maintain current investment – projects not
delivered until decade after Long-term Plan 2018-2028.
|
Recommendation/s
That the
Rodney Local Board:
a) decide
if it wishes to recommend to the Governing Body consultation as part of the Long-term
Plan 2018-2028 on a targeted rate of $150 per separately used or inhabited
part of a rating unit to fund $41 million of transport improvements in the Rodney
Local Board area over the next ten years.
|
Comments
Background
Rodney
Local Board Plan
5. The
Rodney Local Board consulted on investigating a targeted rate to fund transport
improvements, as part of its local board plan. The draft text of the plan
stated that “to make an impact and start addressing more of
Rodney’s issues, we need extra funding, and for that we propose
investigating a new targeted rate and progressing this pending the result of
the investigation.” Potential uses for the rate were identified in the
plan as including public transport trials (such as buses between Warkworth and
Silverdale or rail to Huapai), park and ride facilities in Warkworth and
Kumeu-Huapai, and sealing Rodney’s roads. The local board received
1,414 responses to the targeted rate question in the local board plan, and 53%
of respondents supported the investigation into the targeted rate.
6. Auckland Transport has
analysed the investments suggested in the local board plan consultation.
The proposed investments have been adjusted to incorporate projects most likely
to make a material difference to transport outcomes relative to their
costs. These are set out in the proposal that follows and are discussed
in more detail in Attachment B: Transport investment options for Rodney Local
Board.
Current
Rodney Local Board area transport investment program
7. The draft capital programme
includes a number of potential projects in the Rodney local board area for
consideration as part of development of the Long-term Plan 2018-2028:
· seal extension programme, $30 million
· Supporting Growth projects in Warkworth, including
° Matakana Link Road
° future extension of Matakana Link Road to Sandspit Road
· Warkworth Western Collector
· Warkworth grade separated park and ride facility.
8. The Supporting Growth
projects are a relatively low priority and the potential for funding is highly
uncertain. For full details see Attachment B: Transport investment
options for Rodney Local Board.
Statutory
decision making criteria
9. The council (Governing Body
and local boards) are required to consider and consult on any changes to
funding for services. This proposal considers the sources of funding for the
proposed transport improvements in the Rodney Local Board area against the
statutory criteria in section 101(3) of the Local Government Act 2002.
The key elements of this assessment are set out in the options below. A
full analysis against the statutory criteria is set out in Attachment A:
Assessment against statutory criteria.
Rodney
Local Board Transport Improvements Proposal
10. To fund a range of additional transport
service improvements in the Rodney Local Board area of $41 million over ten
years. The proposed service improvements are set out in the table below,
for full details see Option Three in Attachment B: Transport investment options
for Rodney Local Board. The costs are net of fare revenue which is not
expected to be material. All costs are indicative and are subjected to
further review. Delivery will be phased over time to align with revenue
generated from targeted rate.
Table 1: Proposed delivery timeframes
|
Project
|
10 year OPEX
|
10 year CAPEX
|
10 year Total
|
|
Bus service
from Huapai to Westgate
Delivery from 2019
calendar year
estgate
Delivery from 2019 calendar year
|
2,300,000
|
|
2,300,000
|
|
Bus service from
Riverhead to Westgate Delivery from 2019 calendar year s service from Riverhead to
Westgate Delivery from 2019 calendar year
|
5,270,416
|
200,000
|
5,470,416
|
|
Warkworth Park and Ride
- 2018/19 – 2020/21*arkworth Park and Ride - 2018/19 – 2020/21*
|
285,208
|
110,000
|
395,208
|
|
Huapai Park and Ride
– dependent on investigation uapai Park and Ride – dependant on
investigation
|
|
4,000,000
|
4,000,000
|
|
Proposed seal extension
programme – delivery over 10 year period ver 10 year period
|
1,100,658
|
12,448,272
|
13,548,930
|
|
Proposed footpath
programme - delivery over 10 year period th programme - delivery over 10 year
period
|
30,000
|
14,925,826
|
14,955,826
|
|
Total otal
|
8,986,282
|
31,684,098
|
40,670,380
|
*See paragraph 13
11. The
proposal does not include rail to Huapai that was referred to in the Rodney
Local Board Plan consultation due to the high estimated cost of $18.7m capital
plus $5.5m per annum for operating costs relative to potential benefit within
the LTP planning timeframes. Two bus service proposals were also removed due to
expected low patronage. The investment proposal has been adjusted to
replace these projects with a range of other investments to serve the community
in that area, including additional bus services to Westgate and investigation
of Huapai Park and Ride.
12. Auckland Transport does not currently
have plans for a park and ride in the Huapai area until after 2028, and no
formal work has been done on identifying potential locations. Auckland
Transport is currently undertaking a Programme Business Case for its park and
ride programme. This work, which is planned for completion in February 2018,
will include examining options for Huapai and will provide a decision on the
merits of a facility. In the meantime, Auckland Transport will also investigate
potential sites, including temporary options using existing parking sites. We
propose a Huapai park and ride facility is tentatively included in the
proposal, noting that this is subject to further investigation on the costs,
feasibility and operational merits of constructing a facility in the short to
medium term. In the meantime a placeholder allowance of $4 million has been
made to cover the possibility that land purchase may be required.
Proposed
funding
13. The
Warkworth Park and Ride assumes the availability of Warkworth Showgrounds
carpark, based on a lease land/licence arrangement between Auckland
Transport and Auckland Council’s Community Facilities Department. Further
work is required to confirm the suitability of the site for Park and Ride.
14. It
is proposed to fund the transport improvements with a targeted rate of $150 per
SUIP.
15. The projects are spread over the entire
Rodney Local Board area providing benefits to all residents and properties in
the form of:
a) improved personal transport choices
and outcomes (bus services, new footpaths and Park and Ride facilities)
b) improved residential amenity
(additional road sealing and new footpaths).
16. Given the nature of the benefits:
· business owners and farms will benefit at a similar level
to residential properties rather than in proportion to their scale of activity
or capital value
· residential properties of differing capital value will
benefit similarly.
17. As
the benefit to all properties is relatively similar a rate set as a fixed
charge per separately used or inhabited part of a rating unit (SUIP) is
appropriate.
18. The cost of the rate is estimated to be
$150 per annum or $2.90 per week. This is unlikely to present material
affordability issues for most ratepayers. Those ratepayers with
affordability issues can access the council’s rates postponement scheme
or apply for the rates rebate which the council administers on behalf of the
Department of Internal Affairs. Whilst business properties and more
remote farms will benefit less than residential properties they can expense
rates and claim back GST which means the net cost to them will be $93.90 per
annum or $1.80 per week.
Alternative
funding options
20. The following alternative funding
options were considered
· General rates
· Differentiate by sub-region
· Differentiated targeted rate on business properties
· Maintain current investment.
Each of these
options is assessed below.
General
rates
21. General rates are not an appropriate
funding source as the projects proposed are low priority for the region as a
whole. While the cost of the service improvements would only increase
general rates by 0.3 per cent for all other ratepayers the relative cost
benefit of the projects isn’t justified on a regional basis.
Differentiate
by sub-region with local
board
22. Targeted
rates can be set to cover the entire Rodney area or geographical subsets if
some benefit more from the proposed service improvements. The projects
are spread broadly over the Rodney area but the cost of investment varies by
subdivision, see table below.
|
Subdivision
|
Rodney
|
Kumeu
|
Wellsford
|
Warkworth
|
Dairy Flat
|
|
No
of SUIPs
|
31,207
|
12,450
|
3,236
|
12,805
|
2,717
|
|
Annualised
expenditure
(revenue
requirement)
|
$4,067,038
|
$2,170,054
|
$363,006
|
$1,366,906
|
$167,073
|
|
Investment
per SUIP
|
$150
|
$200
|
$129
|
$123
|
$71
|
23. The
nature of projects proposed has been structured to deliver a reasonable
distribution of investment and benefit across the Rodney Local Board
area. The costs vary across the region resulting in a variation in
investment value in different sub-regions but provide similar levels of benefit
relative to population. The subdivisions are established for electoral purposes
but don’t align with the likely distribution of transport benefits.
24. The costs of providing some projects,
park and rides (Warkworth $400,000 and Huapai $4 million), varies widely
whereas the benefits are similar. Accordingly sharing the costs
regionally is justified on a benefits basis for these projects.
Targeted
rate with business differential
25. Business
properties are able to expense rates and claim back GST. This makes the
rate more affordable for these properties. In addition business
properties are better placed to adjust their income in response to a change in
costs than residential ratepayers. However, business ratepayers receive
similar benefits to residential properties and accordingly should pay the same
rate.
26. If a business differential was set it
could be based on their tax advantage. Business properties would pay a
fixed charge 1.6 times the non-business rate or $232 per SUIP. The
non-business rate would be $145 per SUIP. After adjusting for expensing
the additional rate against tax and claiming back GST business ratepayers would
pay the same as residential ratepayers.
Maintaining
current investment and service levels
27. Auckland Transport’s draft capital
programme includes a number of potential projects in the Rodney local board
area for consideration as part of development of the Long-term Plan 2018-2028:
· seal extension programme, $30 million
· Supporting Growth projects in Warkworth, including
‒ Matakana
Link Road
‒ future
extension of Matakana Link Road to Sandspit Road
‒ Warkworth
Western Collector
‒ Warkworth
grade separated park and ride facility.
28. The
Supporting Growth projects are a relatively low priority and the potential for
funding is highly uncertain. For full details see Attachment B: Transport
investment options for Rodney Local Board.
29. The additional investments in the
proposal, which complement the list above, would not occur within the Long-term
Plan timeframe.
Consideration
Local
board views and implications
30. The
Governing Body has decision making authority for setting rates.
31. The
Rodney Local Board will communicate their views on this proposal to the
Governing Body if they wish to proceed.
32. Other local boards will give formal
feedback on the draft Long-term Plan in May 2018 and have the opportunity to
comment on this proposal at that time if it proceeds.
Māori
impact statement
33. The council does not hold information on
the ethnicity of ratepayers so is not able to identify the exact impact of
policy changes on Māori. The impact of the policy options on Māori
will be similar to that on other residents in Rodney.
Implementation
34. There are no
implementation issues.
Attachments
|
No.
|
Title
|
Page
|
|
a⇩ 
|
Assessment Against Statutory Criteria
|
13
|
|
b⇩
|
Transport investment options for Rodney Local Board
|
19
|
|
c⇩ 
|
Legislative Information
|
35
|
Signatories
|
Authors
|
Andrew Duncan - Manager Financial Policy
Eric Wen - Advisor - Financial Polciy
|
|
Authorisers
|
Ross Tucker - Acting General Manager, Financial
Strategy and Planning
Lesley Jenkins - Relationship Manager
|
