I hereby give notice that an ordinary meeting of the Rodney Local Board will be held on:
Date: Time: Meeting Room: Venue:
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Thursday, 24 May 2018 11:30am Council
Chamber |
Rodney Local Board
OPEN AGENDA
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MEMBERSHIP
Chairperson |
Beth Houlbrooke |
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Deputy Chairperson |
Phelan Pirrie |
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Members |
Brent Bailey |
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Tessa Berger |
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Cameron Brewer |
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Louise Johnston |
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Allison Roe, MBE |
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Colin Smith |
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Brenda Steele |
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(Quorum 5 members)
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Raewyn Morrison Local Board Democracy Advisor
21 May 2018
Contact Telephone: (09) 427 3399 Email: raewyn.morrison@aucklandcouncil.govt.nz Website: www.aucklandcouncil.govt.nz
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Board Member |
Organisation |
Position |
Brent Bailey |
Royal NZ Yacht Squadron Kaipara College Board of Trustees Gumboots Early Learning Centre |
Member Parent Representative Director |
Tessa Berger
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Mahurangi Action Incorporated The Merchandise Collective Friends of Regional Parks Matakana Coast Trail Trust
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President Chairperson Founder/Director Committee Member Member Forum representative |
Cameron Brewer |
Riverhead Residents & Ratepayers Association Cameron Brewer Communications Limited Spire Investments Limited |
Member
Director Shareholder |
Beth Houlbrooke
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Baddeleys Beach and Campbells Beach Residents and Ratepayers Assn. Kawau Island Boat Club |
Member
Member |
Louise Johnston
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Blackbridge Environmental Protection Society |
Treasurer |
Phelan Pirrie |
Muriwai Volunteer Fire Brigade Best Berries (NZ) Ltd |
Officer in Charge Director/Shareholder |
Allison Roe |
Waitemata District Health Board Matakana Coast Trail Trust New Zealander of the Year Awards |
Elected Member Chairperson Chief Category Judge/Community |
Colin Smith
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- |
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Brenda Steele
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Te Uri o Hau Incorporation Beacon Pathway |
Secretary/Beneficiary Board member
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Rodney Local Board 24 May 2018 |
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1 Welcome 5
2 Apologies 5
3 Declaration of Interest 5
4 Confirmation of Minutes 5
5 Leave of Absence 5
6 Acknowledgements 5
7 Petitions 5
8 Deputations 5
9 Public Forum 5
10 Extraordinary Business 5
11 Notices of Motion 6
12 Rodney Local Board Transport Targeted Rate 7
13 Local board feedback on the Local Government (Community Well-being) Amendment Bill 57
14 Consideration of Extraordinary Items
At the close of the agenda no apologies had been received.
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.
The Rodney Local Board will confirm the minutes of the 17 May 2018 business meeting at the meeting on 21 June 2018.
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At the close of the agenda no requests for leave of absence had been received.
At the close of the agenda no requests for acknowledgements had been received.
At the close of the agenda no requests to present petitions had been received.
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.
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.
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.”
There were no notices of motion.
Rodney Local Board 24 May 2018 |
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Rodney Local Board Transport Targeted Rate
File No.: CP2018/07116
Te take mō te pūrongo / Purpose of the report
1. To decide on the proposal for a Rodney Local Board Transport Targeted Rate (RLBTTR) to support additional transport investment in the Rodney Local Board area.
Whakarāpopototanga matua / Executive summary
2. To accelerate improvement in the transport services in the Rodney Local Board area a targeted rate of $150 per separately used or inhabited part of a rating unit[1] (SUIP) was proposed to raise $41 million[2] over ten years. This was consulted on as part of the draft 10 Year Budget 2018-2028.
3. Forty three per cent of respondents were opposed to the proposal with 36 per cent in support. Twenty one per cent of respondents indicated partial support for the proposal.
4. The original proposal was based on accelerating investment in transport improvements in the Rodney Local board area. The base transport program for the area in the draft Regional Land Transport Plan (RLTP), including projects funded by the proposed Regional Fuel Tax (RFT), has expanded considerably and now includes additional investment over ten years in road sealing, public transport service enhancements and footpaths.
5. Given the changes to the base case, officers have developed an alternative proposal for consideration. This would invest $46 million in bus services, Park-N-Rides and footpaths funded by a targeted rate of $150 per SUIP raising $4.0 million in 2018/2019 ($46 million over 10 years).
6. The proposal also includes a conservative estimate of possible NZTA funding. If this funding eventuates the proposal makes provision for an additional bus service starting in the 2019/2020 year.
7. The proposal includes capital expenditure so will require Governing Body’s approval for taking on additional debt. To ensure any possibility of future NZTA funding for the projects they will need to be included in the RLTP by Auckland Transport.
8. The projects in this option have changed from the original proposal. The benefits are still distributed widely across the local board are although the form of the benefits has changed with seal extensions now funded from within the RLTP. The Rodney Local Board will need to consider this option and the original proposal the context of the statutory criteria discussed in the report and in particular the:
· nature of the additional benefits to the Rodney area of the original proposal and alternative option in excess of the transport investment proposed in the RLTP (including projects funded by the RFT)
· distribution of the benefits between ratepayers in the area
· overall impact of the proposed rate on the community.
Horopaki / Context
Rodney Local Board area transport investment program in draft RLTP
9. The draft capital programme set out in the RLTP (including projects funded by the RFT) includes the following projects in the Rodney local board area:
· seal extension programme, $121 million (being current plans $12 million, RFT $24 million and RLTP $85 million) – nearly all of which is for Rodney based on current prioritisation
· Supporting Growth projects in Warkworth, including the Matakana Link Road
· Warkworth temporary park and ride facility (utilising existing parking area)
· additional footpath investment from regional allocation in RLTP of $45 million.
10. The RLTP and RFT are presently being consulted on. The Governing Body will make budget decisions at its meeting on 31 May 2018.
Rodney Local Board Plan and Proposed targeted rate
11. The Rodney Local Board consulted on investigating a targeted rate to fund transport improvements, as part of its local board plan. The Consultation Document for the 10 Year Budget 2018-2028 proposed a targeted rate of $150 per SUIP to raise $41 million[3] over ten years to fund the transport service improvements.
12. 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 that was in the December report to the Rodney Local Board entitled Rodney Local Board transport targeted rate. For full details refer to Attachment D, the original report and proposal from the Rodney Local Board business meeting of 5 December 2017.
Table 1: Proposed projects, costs[4] and delivery timeframes
Project |
10 year OPEX |
10 year CAPEX |
10 year Total |
Bus service from Huapai to Westgate Delivery from 2019 calendar year |
2,300,000 |
|
2,300,000 |
Bus 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 |
285,208 |
110,000 |
395,208 |
Huapai Park and Ride – dependant on investigation |
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4,000,000 |
4,000,000 |
Proposed seal extension programme – delivery over 10 year period |
1,100,658 |
12,448,272 |
13,548,930 |
Proposed footpath programme - delivery over 10 year period |
30,000 |
14,925,826 |
14,955,826 |
Total |
8,986,282 |
31,684,098 |
40,670,380 |
Statutory decision making criteria
13. The council (Governing Body and local boards) are required to consider and consult on any changes to funding for services. The sources of funding for the proposed transport improvements in the Rodney Local Board area must be considered 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.
Tātaritanga me ngā tohutohu / Analysis and advice
Feedback
14. A total of 1,452 responses were received (including 1,376 in writing, email or online) on the proposed targeted rate from the Rodney Local Board area. The graph below gives an overview of the responses:
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15. Of the 1,452 total submissions, 1,254 came from residents living in Rodney (including 1,178 in writing, email or online). The table below shows the breakdown of just these responses:
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16. Forty-three per cent of respondents did not support the proposal with 36 per cent in support. However, 21 per cent of submitters partially support the proposal (which would bring the combination of support/partially support to 57 per cent).
17. The comments provided by those that gave partial support shows varying degrees of support for the proposal, ranging from those that support the proposal in principle, but not the individual projects or the specific amount ($150); those that want assurances that the rate would be spent in Rodney; and, those that are sceptical that the rate will be collected and spent correctly at all. A notable number qualified their support stating that they could not support the proposal if the regional fuel tax was also implemented.
18. Submissions that did not support the targeted rate commonly cited that rates are already too high; that they object to paying for services other parts of Auckland get from general taxation; or, that they did not know what the projects proposed were/the proposed projects had no value for them.
Response to feedback
19. The targeted rate is legally required to be spent on transport projects in the Rodney Local Board area. The council will maintain a reserve account for the funding and record expenses against that account as they are incurred on the projects by Auckland Transport.
20. The average impact of the rate in conjunction with the proposed regional fuel tax is estimated to be between $270 and $290 per year or $5 to $6 per week. This is the sum of the rate of $150 and the fuel tax on a vehicle of average fuel consumption travelling 15,000km per year ($120 to $140 per year). The cost will vary depending on the number of vehicles a household operates, fuel consumption and mileage and whether the residents are owner occupiers or renters.
Alternative option
21. The base transport investment in the Rodney Local Board area in the RLTP (including RFT funded projects) is substantially increased from that on which the original proposal is made. The detailed program is set out in Attachment B: Transport investment options for Rodney Local Board. Given these changes the board may wish to consider an alternative funding package that reflects these changes.
22. Officers have developed the following package based on an indication of preferences from the board. This replaces seal investment with a range of bus services and adding the RLTP funded temporary Park-N-Ride proposal for Warkworth. The projects are[5]:
· additional buses on 122 service from Huapai/Kumeu to Westgate ($230K per annum)
· new bus service from Riverhead to Westgate ($547K per annum)
· new bus service from Wellsford to Warkworth $525K per annum)
· new bus service from Helensville to Silverdale ($695K per annum)
(from 2019/2020 depending on overall NZTA subsidy success)
· new bus service from Huapai to Albany ($670K per annum)
· 120 space Park-N-Ride in Warkworth ($1.485m)
· Huapai/Kumeu Park-N-Ride ($4.0m including land purchase)
· approximately 30 new footpaths ($15m).
23. The bus services proposed will be reviewed annually to determine whether or not their use justifies them being:
· taken over and fully funded by AT
· continued under RLBTTR funding
· discontinued.
24. The Rodney Local Board will monitor the performance of the projects and determine whether to reprioritise its expenditure. A material change to spending priorities may require further appropriate consultation. Officers note that rates must be reset each year as part of the annual or long-term plan process.
25. To fund the proposed expenditure would require a rate set per SUIP of $150 year to raise $4.0 million in 2018/2019. The proposed rate is set conservatively given the uncertainty around the project costs. Financial modelling envisages the rate increasing at 2 per cent per annum. However, the key determinant of future rates levels will be the actual project costs, the success of any applications for NZTA funding and subsequent community consultation and local board decisions.
Distribution of benefits
26. The projects are spread broadly over the Rodney area but the cost of investment varies by subdivision, see table below. The table doesn’t include the costs of the Helensville to Silverdale service proposed for 2019/2020 which would add to the benefits for Kumeu and Dairy Flat.
Subdivision |
Rodney |
Kumeu |
Wellsford |
Warkworth |
Dairy Flat |
No of SUIPs |
30,798 |
12,280 |
3,185 |
12,673 |
2,660 |
Annualised expenditure
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$3,932,108 |
$2,184,827 |
$516,560 |
$938,858 |
$291,863 |
Investment per SUIP |
$147 |
$205 |
$187 |
$85 |
$126 |
Note: It is proposed to set the rate at $150 given the uncertainty around the project costs as noted above:
27. 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.
28. The costs of providing some projects, park and rides, (Warkworth $1.2 million and Huapai $4 million), varies widely whereas the benefits are similar. Accordingly sharing the costs across the Rodney area is justified on a benefits basis for these projects.
NZTA funding
29. The Government Policy Statement released on 4 April indicates a change in priority for NZTA funding which would make the proposed projects more likely to qualify for a subsidy. A comprehensive business case is required to support applications for NZTA funding. Fifty one per cent of a qualifying project may be funded by NZTA. It is not clear whether these projects would meet the criteria at this time given their relative priority in the RLTP.
30. Given the above a conservative approach has been taken to budgeting for NZTA potential subsidies. Officers propose adding an additional bus service to the project list rather than reducing the targeted rate requirement by 51 per cent. The service would be planned to begin in the 2019/2020 year if applications for NZTA funding are successful for some or all of the other projects. This is roughly equivalent to achieving an overall NZTA funding of 20 per cent. If a higher level of funding is achieved the local board can decide whether to fund additional projects, bring some of projects forward or reduce the rates requirement.
31. To ensure these projects are eligible for subsidies in future they need to be included in the RLTP. Officers recommend that the Rodney Local Board ask AT to include them in the RLTP.
Funding options
32. A fixed rate per SUIP is proposed as the basis for the rate. The projects in both the original proposal and alternative option are spread over the entire Rodney Local Board area (distribution of benefits is less on a project cost basis in Warkworth) 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 new footpaths).
33. 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.
34. As the direct transport 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 on the basis of distribution of benefits.
35. As there is a strong relationship between capital value and income, a rate applied on capital value would place more charge on those potentially better able to afford it. A rate applied on capital value would also increase the share paid by business and farm/lifestyle properties as they tend to have higher property values. Business and farm properties can claim back GST and expense rate for tax purposes.
36. A full analysis of alternatives to the form of the rate, including general rates funding, were discussed in officers’ advice in December and is set out in Attachment A: Assessment against statutory criteria.
Overall impact
37. The cost of the proposed and alternative rates are $150 per annum ($2.90 per week). 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 year $1.75 per week).
38. For residential ratepayers the cost of a targeted rate adopted in conjunction with the RFT is discussed in paragraph 20 above.
Ngā whakaaweawe ā-rohe me ngā tirohanga a te
poari ā-rohe /
Local impacts and local board views
39. The Governing Body has decision making authority for setting rates. The Rodney Local Board will communicate their views on this proposal to the Governing Body if they wish to proceed. No other local board provided comment in their feedback on the draft 10-Year Budget.
Tauākī whakaaweawe Māori / Māori impact statement
40. 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.
Ngā ritenga ā-pūtea / Financial implications
41. The capital expenditure proposed as part of either the original proposal or alternative option will require additional borrowing of $5.65 million. As the council is operating at close to its borrowing limits the Governing Body’s approval will be required.
Ngā raru tūpono / Risks
42. There is a risk that individual projects proposed may cost more than the estimates in the report. This will be managed by Auckland Transport providing updated advice to the local board before commitments are entered into.
Ngā koringa ā-muri / Next steps
43. If the rate is adopted by the Governing Body the next steps will be:
· Auckland Transport to set in place plans to deliver the projects
· Auckland Transport to establish reporting regime for Rodney Local Board
· establishment of a targeted rate reserve account.
Ngā tāpirihanga / Attachments
No. |
Title |
Page |
a⇩ |
Assessment against statutory criteria |
15 |
b⇩ |
Alternative transport investment option for Rodney Local Board |
21 |
c⇩ |
Legislative information alternative information |
27 |
d⇩ |
Rodney Targeted Rate report and proposal, 5 December 2017 |
29 |
Ngā kaihaina / Signatories
Authors |
Andrew Duncan - Manager Financial Policy |
Authorisers |
Ross Tucker - Acting General Manager, Financial Strategy and Planning Lesley Jenkins - Relationship Manager |
24 May 2018 |
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Local board feedback on the Local Government (Community Well-being) Amendment Bill
File No.: CP2018/07982
Te take mō te pūrongo / Purpose of the report
1. To provide an opportunity for local boards to formally provide feedback on the government’s Local Government (Community Well-being) Amendment Bill.
Whakarāpopototanga matua / Executive summary
2. The Government introduced the Local Government (Community Well-being) Amendment Bill (the Bill) into Parliament on 5 April 2018. The Bill has been referred to Select Committee and submissions are now open.
3. On 1 May 2018, the Planning Committee approved that staff would develop a submission on the Local Government (Community Well-being) Amendment Bill and established a political working group to approve the final submission.
4. The political working group consists of the chair and deputy chair of the Planning Committee, chair and deputy chair of the Environment and Community Committee, chair and deputy chair of the Community Development and Safety Committee, a member of the Independent Māori Statutory Board and two local board chairs.
5. The Bill seeks to address two main areas:
· to reinstate the purpose of local government to promote the social, economic, environmental and cultural well-being of communities
· to restore the power to collect development contributions for a wider group of infrastructure projects.
6. Both of these areas can have significant impact on council’s way of working, as they define local government’s purpose and its ability to collect funds.
7. In both 2012 and 2014 changes were made to the Local Government Act 2002 (the Act) regarding these two main themes. Auckland Council made submissions opposing those changes. The submission to this new Bill will be founded on the evidence from those previous submissions.
8. Broadly the submission intends to support the amendments. However, staff require time to ensure a robust analysis of any potential impact, particularly of the development contribution changes.
9. To develop a submission, staff will work across the council family, including CCOs, and with the Independent Māori Statutory Board.
10. An opportunity is provided for local boards to formally provide feedback on the government’s Local Government (Community Well-being) Amendment Bill.
11. Submissions on the Bill close on 25 May 2018. Due to the tight timeframes, local boards need to provide their feedback for consideration by 16 May. Any formal feedback received after 16 May and before 21 May 2018 will be attached to the final submission.
12. In order to meet timeframes for the Governing Body meeting on this matter the local board has provided informal feedback on the Bill, this is attached as Attachment A to the agenda report for retrospective approval.
Horopaki / Context
13. The Local Government (Community Well-being) Amendment Bill (the Bill) has two main themes:
· to reinstate the purpose of local government to promote the social, economic, environmental and cultural well-being of communities
· to restore the power to collect development contributions for a wider group of infrastructure projects.
14. Specifically, the Bill seeks to:
· restore the purpose of local government to promote the social, economic, environmental, and cultural well-being of communities, taking a sustainable development approach
· restore territorial authorities' power to collect development contributions for any public amenities needed as a consequence of development
· make a minor technical modification to the development contributions power to allow territorial authorities to collect development contributions for projects financed through financial advances from the New Zealand Transport Authority.
15. The Governance and Administration Select Committee deadline for submissions on the Bill is 25 May 2018.
Tātaritanga me ngā tohutohu / Analysis and advice
16. The Local Government Act 2002 Amendment Act 2012 made significant changes to the purpose of local government through an amendment to section 10. This removed the focus on social, economic, environmental and cultural well-being of communities and reoriented the purpose towards the provision of cost-effective infrastructure and core services.
17. In 2014, there was another amendment to the Act which made an array of changes including to the development contributions regime. This limited territorial authorities’ ability to collect development contributions for community amenities (e.g. sports grounds, swimming pools and libraries).
18. In both 2012 and 2014, Auckland Council made submissions opposing these changes to the Act.
19. The development of this submission will be based on the evidence of the council’s previous submissions on the Act.
20. Broadly the submission intends to support the amendments. However, staff require the remaining time to gain input from subject matter experts across the council family and ensure a robust analysis of the impact, particularly of the development contribution changes.
21. In order to meet timeframes for the Governing Body meeting on this matter the local board has provided informal feedback on the Bill, this is attached as Attachment A to the agenda report for retrospective approval.
Ngā whakaaweawe ā-rohe me ngā tirohanga a te
poari ā-rohe /
Local impacts and local board views
22. An opportunity is provided for all local boards to provide formal feedback. Local Board Services sent out an email on 13 April to all local board members outlining the objectives of the Bill and that staff would be requesting local board involvement.
23. Submissions on the Bill close on 25 May 2018. Due to the tight timeframes, local boards need to provide their feedback for consideration by 16 May. Any formal feedback received after 16 May and before 21 May 2018 will be attached to the final submission.
24. Additionally, two local board chairs have been invited to participate on the political working group that endorses the final council submission.
25. The proposed restoration of the purpose of local government to include social, economic, environmental and cultural well-being aligns well with local boards planning for and delivering on issues of local importance, as defined in the Local Board Plans.
26. The restoration of local government’s power to collect development contributions will allow for better access to funding of key local facilities that are of significant interest to local boards such as swimming pools and sports grounds.
Tauākī whakaaweawe Māori / Māori impact statement
27. The Bill’s proposed changes align well with the Independent Māori Statutory Board’s Māori Plan for Tāmaki Makaurau that describes the implementation of their key directions through the lens of the four pou of social, cultural, economic and environmental wellbeing areas.
28. Māori experience disproportionately high negative social, economic and health outcomes. The reinstating of a more holistic purpose of local government could have a positive impact on Māori by refocusing local government decisions to require consideration of broader outcomes.
29. Council staff will seek to engage and receive input from mana whenua by email. Staff will also seek input from the Independent Māori Statutory Board.
Ngā ritenga ā-pūtea / Financial implications
30. There are no anticipated negative financial implications from supporting the Bill, however, staff will work with the finance team to identify and analyse any impact.
Ngā raru tūpono / Risks
31. If the local board does not contribute to the submission, then there is a risk that Auckland Council family’s position on this Bill will not include their insights.
Ngā tāpirihanga / Attachments
No. |
Title |
Page |
a⇩ |
Rodney Local Board Feedback on the Local Government (Community Well-being) Amendment Bill |
61 |
Ngā kaihaina / Signatories
Authors |
Bonnie-May Shantz - Principal Policy Analyst |
Authorisers |
Louise Mason - GM Local Board Services Jacques Victor - GM Auckland Plan Strategy and Research |
[1] A SUIP separately identifies for rating purposes both a granny flat and the main house and each shop in a shopping mall.
[2] Uninflated. Equivalent to $46 million inflated.
[3] Uniflated. Equivalent to $46 million inflated.
[4] 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.
[5] The costs are net of fare revenue which is not expected to be material. All costs are indicative and are subjected to further review.