Agenda of Finance and Performance Committee

Finance and Performance Committee

23 October 2018

Shareholder approval of Ports of Auckland Limited's final Statement of Corporate Intent 2018- 2021

File No.: CP2018/19073

Te take mō te pūrongo / Purpose of the report

1. To approve the Ports of Auckland Limited’s Statement of Corporate Intent 2018-2021.

Whakarāpopototanga matua / Executive summary

2. On 21 August 2018, the Finance and Performance Committee approved shareholder comments on Ports of Auckland Limited’s (POAL’s) draft Statement of Corporate Intent 2018-2021 (SCI).

3. The comments related to POAL’s objectives, how it intended to collaborate with the council group, engagement with mana whenua and sustainability.

4. Staff consider that POAL has addressed the council’s shareholder comments and recommend that the Finance and Performance Committee approve the final SCI.

Ngā tūtohunga / Recommendation

That the Finance and Performance Committee:

a) approve the final Statement of Corporate Intent 2018-2021 for Ports of Auckland Limited.

Horopaki / Context

5. On 21 August 2018, the Finance and Performance Committee approved council’s shareholder comments on Ports of Auckland Limited’s (POAL’s) draft Statement of Corporate Intent 2018-2021 (SCI) (resolution FIN/2018/119). On 30 August 2018, the mayor wrote to the chair of POAL setting out the shareholder comments (Attachment A to this report).

6. POAL provided its final SCI to Auckland Council on 26 September 2018 (Attachment B to this report).

7. POAL is not a council-controlled organisation and is governed by the Port Companies Act 1988. Under that Act, the principle objective of a port company is to operate as a successful business.

8. The purpose of the SCI is to:

· state publicly the activities and intentions of POAL and the objectives to which those activities will contribute

· provide a basis for the accountability of the Board of Directors of POAL to the shareholder for the performance of the company and its subsidiaries.

9. The Port Companies Act allows the shareholder of a port company to modify its SCI, similar to the ability that the council has for council-controlled organisations under the Local Government Act 2002.

10. This is the first SCI since the control of POAL was transferred to the council from Auckland Council Investments Limited in July 2018. Because of this transfer of responsibilities, there were no shareholder expectations set by the council before POAL prepared its draft SCI. There will be an opportunity to set expectations before POAL prepares its draft SCI for 2019-2022.

11. POAL will present to the Finance and Performance Committee at its 14 November 2018 meeting on its performance, its progress on key issues affecting or likely to affect the business, and any significant events that have arisen.

Tātaritanga me ngā tohutohu / Analysis and advice

12. Staff consider that POAL has addressed the comments adequately, and recommend that the Finance and Performance Committee approves the final SCI. Table A sets out an analysis of how POAL has addressed the shareholder comments.

Table A: Analysis of how POAL has addressed shareholder comments

Shareholder comment	How POAL has addressed this comment
1. Objectives: The final SCI should clearly set out how POAL’s objectives align with council’s strategic priorities (e.g. Auckland Plan 2050, Waterfront Plan, City Centre Masterplan, Regional Land Transport Plan, Central Wharves Strategy), and should also show how POAL’s objectives are connected to its own strategic framework (e.g. Port Masterplan, section 5 Port Companies Act 1988).	Auckland Council’s priorities POAL has included a statement in section 5.2 on page 4 that where practicable it will align its strategic priorities with the council’s strategic priorities. As a port company, it needs to balance its other objectives against the imperative to operate as a successful business. In general, staff consider that this appropriately addresses the shareholder comment. POAL should report annually on how it is aligning with the council’s priorities. Port Master Plan POAL has included a statement in section 5.3 on page 5: “POAL developed a 30-year Master Plan that balances Auckland’s economic, social and environmental needs. The plan provides certainty about what we need to do to continue delivering for Aucklanders. It creates space for freight and gives Auckland the time it needs to make a sound decision on where, when and how to move the port.” In May, the Planning Committee considered POAL’s Port Master Plan based on a joint technical review. It noted that the Port’s proposals are aligned with the City Centre Master Plan, Waterfront Plan and Central Wharves Strategy. The committee supported the general direction of the Port Master Plan, and future collaboration with POAL on detailed design and implementation.
2. Cooperation with the council group: The final SCI should more clearly articulate POAL’s intent to cooperate with the council group with specific reference to key council-controlled organisations (e.g. Auckland Transport and Panuku Development Auckland Ltd), and workstreams (e.g. the Port Future Study).	POAL has included references to working cooperatively with the council, Panuku Development Auckland Limited and Auckland Transport in section 5.2 on page 4. Staff consider that this is appropriate in the context of POAL’s operations. The council will provide input to the Government’s Upper North Island Supply Chain Strategy and wait for its outcome before progressing further work on the Port Future Study. To date, the council has not been asked to input to the Government’s work.
3. Mana whenua engagement: The final SCI should underpin POAL’s intention to strengthen relationships with mana whenua with an appropriate Key Performance Target (KPT) that addresses mana whenua engagement independently of other community engagement. The benchmark for this KPT can be measured over the next financial year, and if necessary the KPTs on iwi and community engagement may be reassessed to ensure that they are measurable. Staff are aware that POAL is working collaboratively with Te Waka Anga Mua ki Uta at council on mana whenua engagement and Māori responsiveness.	POAL has committed to strengthening relationships with mana whenua and the preparation of a Māori responsiveness plan in section 6, Key Performance Targets. Staff consider that the preparation of a Māori responsiveness plan is a necessary first step to developing a meaningful, measurable measure for mana whenua engagement.
4. Central government: The final SCI should include POAL’s relationship with central government as a key relationship, particularly given that central government has signalled work on the Upper North Island Supply Chain Strategy. POAL is expected to engage effectively with council as its shareholder on its collaboration and work with central government.	POAL has included a commitment to maintain “a good relationship with central government, including contributing to its Upper North Island Supply Chain Strategy” in section 5.2 on page 4. Staff consider that this has addressed the shareholder comment.
5. Sustainability: POAL aspires to lead sustainability initiatives in the international port sector and note that sustainability is a key priority for council. The final SCI should allow POAL to demonstrate sustainable outcomes by developing one or more KPTs to measure these outcomes. If necessary, the measures for these KPTs can be benchmarked over the next financial year.	POAL has included a reference in the Key Performance Targets to its long-term environmental sustainability goals of “being carbon neutral by 2025 and emission free by 2040”. Staff consider that this demonstrates a good commitment towards transitioning to a low-carbon economy. POAL should report on its progress to achieving these long-term goals in its annual report.

Changes to the dividend policy

13. Since providing its draft SCI to the council, POAL has also amended the wording of its Dividend Policy (section 7, page 7). Staff consider that this amendment is reasonable and reflects the need to consider the dividend in light of other factors which might affect POAL’s future performance.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

14. The governance of council organisations (including POAL) is the responsibility of the Finance and Performance Committee, and therefore staff have not sought feedback from local boards.

15. However, POAL has stated that it intends to strengthen relationships with the Ōrākei, Waitematā and Devonport-Takapuna Local Boards.

Tauākī whakaaweawe Māori / Māori impact statement

16. POAL’s activities have the potential to impact Māori given that there are several expressed mana whenua interests in the waterfront land that POAL occupies. POAL has committed to developing a Māori responsiveness plan in the 2018/2019 financial year.

Ngā ritenga ā-pūtea / Financial implications

17. The decision to approve the final SCI has no direct financial implications.

Ngā raru tūpono / Risks

18. The decision to approve the final SCI has no risks attached to it. Providing feedback to POAL on its SCI, which forms a basis for accountability to the shareholder, mitigates the risk that its objectives and activities are not aligned with the council’s strategic and financial priorities.

Ngā koringa ā-muri / Next steps

19. If the Finance and Performance Committee approves the final SCI, staff recommend that the mayor write to POAL to inform it of the committee’s decision.

Ngā tāpirihanga / Attachments

No.	Title	Page
a ⇩	Shareholder comments to Ports of Auckland Limited	15
b ⇩	Ports of Auckland Limited Statement of Corporate Intent 2018 - 2021	17

Ngā kaihaina / Signatories

Author

Sarah Holdem - Principal Advisor

Authorisers

Alastair Cameron - Manager - CCO Governance & External Partnerships

Phil Wilson - Governance Director

Matthew Walker - Group Chief Financial Officer

Finance and Performance Committee

23 October 2018

Council submission on Tax Working Group - interim report

File No.: CP2018/19587

Te take mō te pūrongo / Purpose of the report

1. To seek a delegation to approve the council’s submission on the Tax Working Group’s interim report and to highlight in that report topics of most relevance to council’s role.

Whakarāpopototanga matua / Executive summary

2. The Tax Working Group (the Group) has released its interim report, seeking public submissions by 1 November 2018. The report covers a broad spectrum of topics. Initial analysis suggests, and it is therefore recommended, that the topics of most relevance to council and the focus for its submission should be:

· environmental and ecological outcomes

· housing affordability.

3. This report sets out key issues highlighted by the Group in these areas, their recommendations and other important discussion from the body of the interim report.

4. Given the submission deadline, the report seeks approval for a delegation consisting of the chair and deputy chair of the Finance and Performance Committee and the chief financial officer to finalise and approve council’s submission on the interim report.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a) note the release of the Tax Working Group’s interim report seeking public submissions which close 1 November 2018; and

b) approve a delegation to finalise and approve council’s submission on the Tax Working Group interim report, consisting of the chair and deputy chair of the Finance and Performance Committee and the chief financial officer.

Horopaki / Context

5. In November 2017, the Government established the Group (chaired by Sir Michael Cullen) and set out its terms of reference, refer Attachment A. The Group has been asked to consider changes to the tax system to improve its structure, fairness and balance.

6. The Group released ‘The Future of Tax’ background paper on 14 March 2018. Council did not make a submission. The Group has now developed its preliminary recommendations / proposals, set out in the Group’s interim report released on 20 September 2018. The interim report can be accessed via the following link:

https://taxworkinggroup.govt.nz/resources/future-tax-interim-report

7. Also released on 20 September 2018 was a letter from the Ministers of Finance and Revenue to the Group. This sets out Government’s response to the Group’s interim findings and its requests for further work / consideration for the Group’s final report.

8. The Government confirmed it is comfortable with the Group not carrying out further work in the areas of wealth tax, land tax, changes to New Zealand’s petroleum and minerals royalty regimes, GST coverage and a financial transactions tax. The Government has requested the Group considers and recommends an overall package of measures, and that this should include measures that could result in a revenue-neutral package.

9. The Group is seeking public submissions on the interim report which close 1 November 2018. The final report is due to the Ministers of Finance and Revenue in February 2019.

10. Any legislative change arising from the final report will not come into force until 1 April 2021.

Tātaritanga me ngā tohutohu / Analysis and advice

11. The timeframe for council’s consideration of a submission on the interim report is challenging. An extension to the 1 November 2018 submission deadline was declined. As such, staff are seeking a delegation consisting of the chair and deputy chair of the committee and the chief financial officer to finalise and approve the council’s submission.

12. The interim report is 192 pages and covers a broad spectrum of topics. Staff have undertaken initial analysis of the recommendations and content of the interim report, and in the timeframe, focused on those topics of most relevance to council’s role. At the time of writing, this analysis is not yet complete. Further analysis may identify other topics or issues or remove the need for comment on others.

13. The topics of most relevance to council’s role relate primarily to environmental and ecological outcomes and housing affordability. A summary of the Group’s recommendations and proposals on these topics is set out below and it is suggested these topics be the focus of council’s submission response.

Environmental and ecological outcomes

14. In its terms of reference, the Group is specifically directed to consider what role the taxation system can play in delivering positive environmental and ecological outcomes, especially over the longer term.

15. A key issue highlighted by the Group is the treatment of natural capital. New Zealand makes relatively little use of environmental taxation. The Group states there are clear opportunities to increase environmental taxation, both to broaden the revenue base, and to help address the significant environmental challenges we face as a nation.

16. The Group’s summary of recommendations states:

· There is significant scope for the tax instruments^{^[1]} to play a greater role in delivering positive environmental and ecological outcomes in New Zealand. Environmental tax instruments can be a powerful tool for ensuring people and companies better understand and account for the impact of their actions on the ecosystems on which they depend.

· Taxes are not well suited to all environmental problems and regulation will still be a better approach for dealing with some issues. The Group has prepared a draft framework that identifies a range of criteria and design principles for environmental taxes to be effective. Environmental taxation and regulation should be considered together for positive outcomes.

· In the short term, there may be benefits in expanding the coverage of the Waste Disposal Levy and for reassessing waste and landfill disposal externalities to see if higher rates are warranted. There could also be benefits from strengthening the Emissions Trading Scheme and advancing congestion charging.

· Over the medium term, there could be benefits from greater use of tax instruments to address challenges in both water pollution and water abstraction. Addressing Māori rights and interests in fresh water should be central to any changes.

· In the longer term, new tools could allow for an expanded role for environmental taxes to address other challenges such as biodiversity loss and impacts on ecosystem services.

17. While not in the summary of recommendations, in the body of the interim report the Group discusses tax concessions in an environmental context. In particular council may have some interest in:

· The group’s suggestion that the Government examine the possibility of allowing employers to subsidise public transport use by employees without incurring fringe benefit tax. At the moment, the provision of free car parking to employees is not subject to fringe benefit tax. Yet any contributions made to an employee’s public transport costs are taxed.

Housing affordability

18. The Group’s summary of recommendations states that its work on housing affordability is closely linked with its work on the taxation of capital income. The Group will have particular regard to housing market impacts as it finalises its recommendations regarding capital income.

19. Taxation of capital income is discussed briefly below.

20. While not a formal recommendation, in the body of the report the Group identifies three options that could release some additional supply which may be of interest to council:

· Restoration of depreciation on multi-unit residential buildings. (New Zealand abolished depreciation deductions for buildings in 2010, with effect from 2012). The Group is considering whether there is a case to reinstate depreciation deductions for certain types of buildings and will provide recommendations on this in its final report.

· Introduction of a tax on vacant residential land or on empty homes in residential areas

· Removal of the ‘ten year rule’^{^[2]} (rule would need to be reconsidered if capital income taxation is extended further).

Taxation of capital income

21. A key issue highlighted by the Group in its interim report is the inconsistent taxation of capital income. A significant element of capital income – gains from the sale of capital assets – is not taxed on a consistent basis.

22. The Group is still forming its views on the best approach towards extending the taxation of capital income and will work toward its ultimate recommendations in the final report. Appendix B of the interim report sets out the Group’s initial thinking on further design features of broad-based taxation of capital income.

23. The Group is considering two main options:

· an extension of the existing tax net (through the taxation of gains on assets that are not already taxed);

· the taxation of deemed returns from certain assets (known as the risk-free rate of return method of taxation).

24. The Group notes it will need to form the following overall judgement: “In broad terms, will the fairness, integrity, revenue and efficiency benefits from reform outweigh the administrative complexity, compliance costs and efficiency costs that arise from the proposed additional capital income taxation?”

25. The Group is not recommending a wealth tax or a land tax.

26. The Group also states it is aware that any recommendations it ultimately makes in respect of extending the taxation of capital income could have significant impacts for assets held by Māori in collective ownership - such as Māori freehold land and assets held by post settlement governance entities. However, the Group intends to use the period between the interim and final reports to better understand this asset base and explore potential implications with Māori stakeholders.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

27. Staff have worked with the Local Board Services Department to facilitate a process for local board input to council’s submission on the interim report. Any local board comments or views received prior to the Committee meeting will be considered for potential inclusion in council’s submission. Alternatively, any formal local board feedback on the interim report received prior to 26 October 2018 will be appended to council’s final submission.

Tauākī whakaaweawe Māori / Māori impact statement

28. Staff have advised mana whenua of the Group’s interim report and highlighted key topics that may be of particular interest to them. Any mana whenua feedback received prior to the Committee meeting will be considered for potential inclusion in council’s submission. In addition, mana whenua may wish to make their own submissions directly to the Group.

29. In addition to the areas highlighted above, there are recommendations specific to Māori contained in the Group’s interim report which include:

· Retain the 17.5 per cent tax rate for Māori authorities.

· Extend the 17.5 per cent rate to the subsidiaries of Māori authorities.

· Consider technical refinements to the Māori authority rules, as suggested by submitters, in the Tax Policy Work Programme.

30. Additionally, the interim report’s executive summary notes that the Group is currently working with stakeholders to develop a framework to support the future evolution of the tax system that reflects principles from Te Ao Māori, alongside the four capitals of the Living Standards Framework and the principles of tax policy design. This includes exploring concepts of waiora (wellbeing), manaakitanga (care and respect), kaitiakitanga (stewardship), whanaungatanga (relationships and connectedness), and ōhanga (prosperity).

Ngā ritenga ā-pūtea / Financial implications

31. At this stage there are no direct effects from a tax perspective for Auckland Council Group arising from the interim report.

32. The Group proposes a retention of the current GST regime (no further exemptions would be introduced). The Group proposes the current framework for taxing businesses will be largely maintained.

Ngā raru tūpono / Risks

33. As outlined earlier, any legislative change arising from the Group’s final report (due February 2019) will not come into force until 1 April 2021. Once the final report is released and the Government’s response to this is known, council will be better placed to identify any key risks and appropriate mitigation strategies for these.

Ngā koringa ā-muri / Next steps

34. The next steps are for a workshop to be held on 23 October 2018 to discuss council’s approach, with the delegated councillors to finalise and approve council’s submission. A copy of the final submission will be circulated to local boards, the Independent Māori Statutory Board, mana whenua and Advisory Panels and reported for information to the next Finance and Performance Committee meeting.

Ngā tāpirihanga / Attachments

No.	Title	Page
a ⇩	Tax Working Group interim report submission	33

Ngā kaihaina / Signatories

Author

Sarah Johnstone-Smith - Lead Strategic Advisor Strategic Scanning

Authorisers

Jacques Victor - GM Auckland Plan Strategy and Research

Matthew Walker - Group Chief Financial Officer

No.	Title	Page
a ⇩	Finance and Performance Committee Forward Work Programme to 30 June 2019	37

Finance and Performance Committee

23 October 2018

Komiti ā Pūtea, ā Mahi Hoki
Finance and Performance Committee
FORWARD WORK PROGRAMME TO 30 JUNE 2019

The purpose of the Committee is to control and review expenditure across the Group to improve value for money; to monitor the overall financial management and performance of Auckland Council parent and Auckland Council Group; to make financial decisions required outside the annual budgeting processes and to perform the responsibilities of another committee, where it is necessary.

Detailed decisions are reported at the end of this document

Priorities for 2018/19 will be on initiatives which:

1. Planning and Funding

2. Reporting and Performance

3. Value for money

4. Operational

The work of the committee will:

1. approve the Annual Plan 2019/2020 including financial policy, the consultation document and supporting information for recommendation to the Governing Body

2. monitor achievement of financial and other measures of performance and services levels and recommend the Annual Report to the Governing Body

3. approve acquisition and disposal of property related to the Committee’s responsibilities.

4. review and approve financial policy and non-budgeted expenditure.

Lead	Area of work	Reason for work	Finance and Performance Committee role - decision or direction	Expected timeframes
				2018 2019
				Q1 Jul-Sep 24 Jul 21 Aug 18 Sept	Q2 Oct-Dec 17 Oct 23 Oct 14 Nov 20 Nov 11 Dec		Q3 Jan-Mar 19 Feb 19 Mar 20 Mar	Q4 Apr-Jun 16 Apr 21 May 18 Jun 19 June
Planning and Funding
GM Financial Strategy & Planning	Annual Budget	Statutory process	Decision to agree to the Consultation items Adopt Consultation Document to consult with Public Consultation runs Hear feedback and deliberate budget scenarios Decisions made for Annual Budget Adopt final Annual Budget			Nov Dec	Feb 19 Mar	Apr May June
GM Financial Strategy & Planning	Budget Update (as required). This includes significant unbudgeted one-off expenditure.	Financial management	Decision to agree recommended budget changes outside of AP/LTP budgeting cycle			23 Oct 14 Nov Dec	Feb 19 Mar	Apr May Jun
GM Financial Strategy & Planning	Development contributions policy	Statutory requirement to have a DC policy · Align capex figures from LTP	Agree to consult on the proposed DC policy Consultation on draft Development Contribution policy Adoption of Development Contribution policy	Sep		23 Oct 20 Nov Dec
GM Financial Strategy & Planning	Rating Policy and process	Rating	Workshop on approach to rating religious properties (Potentially move into Annual Plan process)	Sep		23 Oct 20 Nov
GM Financial Strategy & Planning	Carry forwards for 2017/2018	Financial Management	Approving budget carry forwards for 2017/2018			17 Oct
GM Financial Strategy & Planning	Infrastructure funding and financing work with Treasury	Financial Management	Discuss ongoing work with central government on Crown Infrastructure Partners and Special Purpose Vehicles for major infrastructure projects – timing for committee as required
GM Corporate Finance and Property	Treasury and debt management		Briefing on council debt			20 Nov	Feb
Auckland Investment Office	Dividend reinvestment plan	Auckland International Airport Limited Dividend Reinvestment Plan	Decision to agree required to approve Dividend Reinvestment Plan				Feb
GM Corporate Finance and Property	Weathertightness issues and provision	To provide an update on changes implemented to reduce the future risk of weathertightness claims as well as a summary of how the liability is calculated for accounting purposes	Review information			20 Nov
Executive Director, Auckland Investment Office	Colin Dale Park	Report on progress of the investigation and negotiations for Speedway (run by Springs Promotions Ltd) to move from Western Springs to Colin Dale Park.	Endorse the Heads of Agreement and Approve to development costs.			20 Nov
Te Waka Anga Mua ki Uta	Māori Transformational Activity and Expenditure Report Te Tiriti O Waitangi Audit Response Work Programme	To monitor progress on expenditure and delivery of Maori transformational activity (includes Te Toa Takitini) and on projects to deliver Māori outcomes. This reporting will be carried out bi-annually To monitor progress in responding to 3 yearly Te Tiriti O Waitangi audit	Receive generally no decisions			17 Oct		21 May

Lead	Area of work	Reason for work	Finance and Performance Committee role - decision or direction	Expected timeframes
				2019 2020
				Q1 Jul-Sep 24 Jul 21 Aug 18 Sept	Q2 Oct-Dec 17 Oct 23 Oct 14 Nov 20 Nov 11 Dec			Q3 Jan-Mar 19 Feb 19 Mar 20 Mar	Q4 Apr-Jun 16 Apr 21 May 18 Jun 19 Jun
Reporting and Performance
GM Corporate Finance and Property	Annual Report	· Statutory requirement · NZX Announcement and release · Draft annual report and Summary on Performance - Sept · Interim audit report – Feb	Receive Annual report Recommend to Governing Body for adoption Note: · NZX announcements are presented to the Audit and Risk Committee · There is a delegation from the Committee to Chair and Deputy Chair of Finance and Performance to recommend to the Mayor and CE to release the preliminary results to the NZ Stock Exchange so that Council can meet NZX reporting deadlines. · Formal adoption of annual report is by the Governing Body	Aug Sept
GM Corporate Finance and Property	Half-yearly report	· NZX listing requirement	Receive Half-yearly report Approve for release Note: · NZX announcements are presented to the Audit and Risk Committee · There is a delegation from the Committee to Chair and Deputy Chair of Finance and Performance to recommend to the Mayor and CE to release the preliminary results to the NZ Stock Exchange so that Council can meet NZX reporting deadlines.					Feb
CCO/External Partnerships	Statements of Intent	· Shareholder feedback on draft SOIs –Aug · Letters of Expectation for 2019/2020 SOIs – Nov · Shareholder comments on draft 2019/2020 SOIs - Apr	Agree 2019/2010 Letters of Expectation	Aug			23 Oct 11 Dec		Apr
Manager Corporate & Local Board Performance	Performance Reporting quarterly - parent	To monitor council parent financial and non-financial performance results	Receive generally no decisions				17 Oct 14 Nov	20 Mar	19 Jun
GM Financial Strategy & Planning	Performance Reporting quarterly – CCOs	To monitor CCO financial and non-financial performance results	Receive validate/challenge				17 Oct 14 Nov	20 Mar	19 Jun
GM Financial Strategy & Planning	Performance Reporting quarterly - group	To monitor Auckland Council group financial performance	Receive generally no decisions				17 Oct 14 Nov	20 Mar	19 Jun
Value for Money
GM Financial Strategy & Planning	Consideration and adoption of Group policy relating to Business Cases		Decision on whether to adopt a new policy			11 Dec
Operational
Panuku Development Auckland	Recommended disposals or acquisitions. These reports are as required, but generally monthly.	· Panuku is required through its SOI to identify and recommend to council properties that are surplus to requirements and can be considered for disposal. These include general disposals to fund LTP projects. · Panuku recommends properties for acquisition and disposal to the committee for approval where they are located within a priority development location.	Decision to proceed with recommended disposals or acquisitions.	July Sept		23 Oct 20 Nov Dec		Feb 19 Mar	Apr May 18 Jun
GM Corporate Finance and Property	Property portfolio	To provide an update on progress of the Corporate Property Portfolio roll out and where required seek approval for any property transactions	Regular reporting			20 Nov		19 Mar	18 Jun
Engineering & Technical Services / Treasury & Financial Transactions / Procurement	Consideration and adoption of Group policies for Performance Bonds	Mayoral Office request	Decide whether to amend current policy					Feb
CCO/External Partnerships	Auckland Regional Amenities Levy MOTAT and Auckland War Memorial Museum Levy	Statutory process · RFA respond to draft levy for MOTAT and AWMM (on behalf of council) · Feb and March 2019 - nine amenities present to F&P committee · February F&P - approve council submission to draft ARAFB Funding Plan · March F&P (G Body) – approve ARAFB draft · Funding levy F&P approve the annual levy for MOTAT and AWMM	Decision to approve submission on draft Funding Plan Decision to approve levies					Feb 20 Mar
Parks, Sports and Recreation	Loan restructuring (committee dates as required)	Responding to proposals and recommendations	Decision to approve proposed restructuring

Detailed decisions - Komiti ā Pūtea, ā Mahi Hoki
Finance and Performance Committee
FORWARD WORK PROGRAMME TO 30 JUNE 2019

Lead	Area of work	Finance and Performance Committee role - decision or direction	Detailed decisions
Planning and Funding
GM Financial Strategy & Planning	Annual Budget	Decision to agree to the Consultation items Adopt Consultation Document to consult with Public Consultation runs Hear feedback and deliberate budget scenarios Decisions made for Annual Budget Adopt final Annual Budget	For information on the previous long-term/annual plan processes, please refer to the table at the end of this document.
GM Financial Strategy & Planning	Budget Update (as required). This includes significant unbudgeted one-off expenditure.	Decision to agree recommended budget changes outside of AP/LTP budgeting cycle	For information on previous decisions, please refer to the table at the end of this document.
GM Financial Strategy & Planning	Development contributions policy	Agree to consult on the proposed DC policy Consultation on draft Development Contribution policy Adoption of Development Contribution policy	Reporting dates: 31/5/18 – Contributions Policy FIN/2018/90 Adopted by the Governing Body: 31/5/18 GB/2018/91 10/9/18 – Workshop on Development Contributions
GM Financial Strategy & Planning	Rating Policy and process	Workshop on approach to rating religious properties (Potentially move into Annual Plan process)
GM Financial Strategy & Planning	Carry forwards for 2017/2018	Approving budget carry forwards for 2017/2018	17/10/18 – 2017/2018 Budget Carry Forwards
GM Financial Strategy & Planning	Infrastructure funding and financing work with Treasury	Discuss ongoing work with central government on Crown Infrastructure Partners and Special Purpose Vehicles for major infrastructure projects – timing for committee as required	11/4/17 - Responsible investment policy and Diversified Financial Asset Portfolio review Resolutions - FIN/2017/44, FIN/2017/45 and FIN/2017/46 20/06/17 - Review of the Diversified Financial Assets Portfolio FIN/2017/88 19/9/17 – Approval of Group Policies FIN/2017/121 11/12/17 – Approval of Treasury Management Policy FIN/2017/161 27/2/17 – Council’s debt funding strategy FIN/2018/10
GM Corporate Finance and Property	Treasury and debt management	Briefing on council debt
Auckland Investment Office	Dividend reinvestment plan	Decision to agree required to approve Dividend Reinvestment Plan
GM Corporate Finance and Property	Weathertightness issues and provision	Review information
Executive Director, Auckland Investment Office	Colin Dale Park	Endorse the Heads of Agreement and Approve to development costs.
Te Waka Anga Mua ki Uta	Māori Transformational Activity and Expenditure Report Te Tiriti O Waitangi Audit Response Work Programme	Receive generally no decisions	23/5/17 - 23/5/17 – Third Quarter of 2016/17 FIN/2017/63 13/12/17 - Te Toa Takitini - Quarter One Māori Responsiveness portfolio report FIN/2016/159 15/08/17 – 2016/2017 Year-End Report FIN/2017/112 12/12/17 – Quarter One Report for 2017/2018 financial year FIN/2017/202 20/03/18 – Quarter Two Report for 2017/2018 financial year FIN/20178/14 12/12/17 Report FIN/2017/291 12/3/18 Response Report FIN/2018/45 24/7/18 Te Tiriti o Waitangi Report 2018 FIN/2018/115 17/10/18 Update on the independent assessment of expenditure incurred by Auckland Council to deliver Māori outcomes 17/10/18 Auckland Council group – programmes and projects that have delivered Māori outcomes in 2017/2018 17/10/18 2018 Treaty Audit Response Programme
Reporting and Performance
GM Corporate Finance and Property	Annual Report	Receive Annual report Recommend to Governing Body for adoption Note: · NZX announcements are presented to the Audit and Risk Committee · There is a delegation from the Committee to Chair and Deputy Chair of Finance and Performance to recommend to the Mayor and CE to release the preliminary results to the NZ Stock Exchange so that Council can meet NZX reporting deadlines. · Formal adoption of annual report is by the Governing Body	13/12/2016 - Delegation for approval of releasing interim and full year group results to New Zealand Stock Exchange FIN/2016/168 18/9/18 – Approval of and recommendation for adoption of the 2017/2018 Annual Report for Auckland Council and Group (confidential)
GM Corporate Finance and Property	Half-yearly report	Receive Half-yearly report Approve for release Note: · NZX announcements are presented to the Audit and Risk Committee · There is a delegation from the Committee to Chair and Deputy Chair of Finance and Performance to recommend to the Mayor and CE to release the preliminary results to the NZ Stock Exchange so that Council can meet NZX reporting deadlines.
CCO/External Partnerships	Statements of Intent	Agree 2019/2010 Letters of Expectation	15/8/17 – Approval of 2017/2020 Statements of Intent FIN/2017/111 19/9/17 – Approval of Watercare Services Limited Statement of Intent 2017-20 FIN/2017/122 12/12/17 - Letters of Expectation for Council-controlled Organisations, 2017-2018 FIN/2016/170 20/3/18 – Letters of Expectation for 2018-2021 17/4/18 – proposed shareholder comments on Draft Council-controlled organisation statements of intent FIN/2018/64 21/8/18 – Council-controlled Organisations – Approval of 2018-2021 Statements of Intent FIN/2018/118 218/8/18 – Ports of Auckland Limited – proposed shareholder feedback on the draft Statement of Corporate Intent FIN/2018/119
Manager Corporate & Local Board Performance	Performance Reporting quarterly - parent	Receive generally no decisions	13/12/16 - Auckland Council organisation report for the period 1 July 2016 to 30 September 2016 FIN/2016/160 21/2/17 - Auckland Council organisation performance report for the period 1 July 2016 to 31 December 2016 FIN/2017/9 26/5/17 - Auckland Council organisation performance report for the period 1 July 2016 to 31 March 2017 FIN/2017/68 21/09/17 - Organisation Performance 1 July 2016 – 30 June 2017 FIN/2017/133 24/11/17 - 1 July 2017 – 30 September 2017 FIN/2017/177 12/03/18 - 1 July 2017 – 31 December 2017 FIN/2018/34 6/6/18 – Auckland Council parent performance report for the period 1 January 2018 to 31 March 2018 FIN/2018/98 17/10/18 – Auckland Council parent performance report for the period 1 July 2017 to 30 June 2018
GM Financial Strategy & Planning	Performance Reporting quarterly – CCOs	Receive validate/challenge	13/12/16 - Council-controlled organisations first quarter report for 30 September 2016 FIN/2016/158 11/4/17 – CCOs second quarter report for 31 December 2017 26/5/17 – Council-controlled organisations third quarter report for 31 March 2017 FIN/2017/69 21/09/17 - Fourth quarter report for 30 June 2017 (public excluded) FIN/2017/130 24/11/17 - First quarter report for 30 September 2017 FIN/2017/178 12/03/18 – Second quarter report ending 31 December 2017 FIN/2018/18 31/5/18 – Approval of council-controlled organisations accountability policy FIN/2018/91 6/6/18 – Council-controlled organisation third quarter report ending 31 March 2018 FIN/2018/96 and FIN/2018/97 17/10/18 – Council-controlled organisation fourth quarter report ending 30 June 2018
GM Financial Strategy & Planning	Performance Reporting quarterly - group	Receive generally no decisions	13/12/16 - Auckland Council Group first quarter financial results to 30 September 2016 FIN/2016/161 21/3/17 - Auckland Council Group quarterly financial report and financial results to 31 December 2016 FIN/2017/28 26/5/17 - Auckland Council Group quarterly financial report and financial results to 31 March 2017 FIN/2017/70 21/09/17 – Report for adoption of the 2016/2017 Annual Report FIN/2017/132 24/11/17 - Quarterly financial report and financial results to 30 September 2017 FIN/2017/176 12/03/2018 - Six monthly financial results to 31 December 2017 FIN/2018/32 6/6/18 – Auckland Council Group quarterly financial report and financial reports to 31 March 2018 FIN/2018/95 17/10/18 – Auckland Council and group financial performance for the year ended 30 June 2018
Value for Money
GM Financial Strategy & Planning	Consideration and adoption of Group policy relating to Business Cases	Decision on whether to adopt a new policy	19/9/17 – Approval of Group Policies FIN/2017/121
Operational
Panuku Development Auckland	Recommended disposals or acquisitions. These reports are as required, but generally monthly.	Decision to proceed with recommended disposals or acquisitions.	Note: A full list of properties to be disposed or acquired is included at the end of this document.
GM Corporate Finance and Property	Property portfolio	Regular reporting	29/3/18 – Workshop on corporate property strategy 17/4/18 – Corporate Accommodation Disposal Recommendation, Corporate Property Portfolio Strategy FIN/2018/58 15/5/18 – Corporate Accommodation Disposal Recommendation, Corporate Property Portfolio Strategy FIN/2018/73
Engineering & Technical Services / Treasury & Financial Transactions / Procurement	Consideration and adoption of Group policies for Performance Bonds	Decide whether to amend current policy	12/3/18 – Green Bond Framework Establishment and Potential Green Bond Issuance FIN/2018/31
CCO/External Partnerships	Auckland Regional Amenities Levy MOTAT and Auckland War Memorial Museum Levy	Decision to approve submission on draft Funding Plan Decision to approve levies	21/2/17 – Presentations from amenities - New Zealand Opera, Auckland Theatre Company, Coastguard Northern Region, Watersafe Auckland and Surf Life Saving Northern Region FIN/2017/4 21/2/17 - Auckland Regional Amenities draft funding plan 2017-2018, proposed Auckland Council submission FIN/2017/5 21/3/17 – Presentations from amenities – Stardome Observatory and Planetarium; New Zealand Maritime Museum; Auckland Philharmonia Orchestra; Auckland Rescue Helicopter Trust; and Auckland Arts Festival FIN/2017/18 21/3/17 - Approval of Auckland Regional Amenities Funding Act levy 2017/2018 FIN/2071/19 27/2/18 - Presentations from amenities – Auckland Festival Trust; Surf Life Saving Northern Region; Auckland Theatre Company; and Stardome Observatory and Coastguard Northern Region FIN/2018/5 27/2/18 - Auckland Regional Amenities Draft Funding Plan 2018/2019 - proposed Auckland Council submission FIN/2018/6 20/3/18 - Integration of NZ Maritime Museum to Regional Facilities Auckland FIN/2018/37 20/3/18 - Presentations from amenities – NZ Opera: Auckland Philharmonia Orchestra; Auckland Rescue Helicopter; and Drowning Prevention Auckland/Watersafe Auckland Inc FIN/2018/38 17/4/18 – approval of Auckland Regional Amenities Funding Act levy FIN/2018/63 21/3/17 – AWMM – approval of 2017/2018 levy FIN/2017/20 21/3/17 – MOTAT – approval of 2017/2018 levy FIN/2017/21 23/5/17 – AWMM letter – approval of 2017/2018 levy 17/4/17 – MOTAT – approval of 2018/2019 levy FIN/2018/61 17/4/17 - AWMM – approval of 2018/2019 FIN/2018/62
Parks, Sports and Recreation	Loan restructuring (committee dates as required)	Decision to approve proposed restructuring

Previous annual/long-term plan processes

13/12/16

Annual Budget 2017/18 – Mayoral Proposal on items for Public Consultation FIN/2016/173

1/6/17

Annual Budget 2017/2018 - Overview to decision-making FIN/2017/73

Annual Budget 2017/2018 - Local Board budget update FIN/2017/74

Annual Budget 2017/2018 – Local Board Feedback FIN/2017/75

Final Annual Budget 2017/2018 – Mayoral Proposal resolutions - FIN/2017/76, FIN/2017/81, FIN/2017/83, and FIN/2017/85

Nov 2017 – May 2017

10-year Budget

31/5/18 – 10-year Budget – 2018-2018 Mayor’s final proposal FIN/208/77-84

31/5/18 – Proposal for One Local Initiatives FIN/2018/85

Rodney Local Board Targeted Rate: Rodney Local Board Decision FIN/2018/87

31/5/18 – Fees, charges and other rating matters FIN/2018/89

31/5/18 – Adoption of the Rates Remission and Postponement Policy FIN/2018/92

31/5/18 – Contributions Policy FIN/2018/90

Adopted by the Governing Body: 31/5/18 GB/2018/91

Regional Fuel Tax GB/2018/90

Panuku disposals/service property optimisation/land exchanges and acquisitions resolutions:

13/12/16		Report Units 1-28/150 Mt Wellington Highway, Mt Wellington; and 1/16 Sarona Avenue, Glen Eden	FIN/2016/157
21/2/17		Report 523a Ellerslie-Panmure Highway, Mt Wellington; and 525-529 Ellerslie-Panmure Highway, Mt Wellington	FIN/2017/3
21/2/17		Report Land up to 9ha to NZTA for the Northern Corridor Improvements Project	FIN/2017/7
21/2/17		Report Statutory land exchange process – Rosedale Park	FIN/2017/8
21/3/17		Report Part of 770R Great South Road, Manukau	FIN/2017/25
11/4/17		Report 19 Anzac Road, Browns Bay (deferred); 6 Butler Avenue, Papatoetoe; part of 129R Bairds Road, Otara; 315A Glengarry Road, Glen Eden; Section 1 East Coast Road, Redvale; 78a Great South Road, Papakura; Section 1 493 State Highway 16, Kumeu; Allotment 137 Ahuroa Parish, Woodcocks Road, Woodcocks; Allotment 138 Ahuroa Parish, Woodcocks Road, Woodcocks; Allotment 139 Ahuroa Parish, Woodcocks Road, Woodcocks; Allotment 140 Ahuroa Parish, Woodcocks Road, Woodcocks; Allotment 141 Ahuroa Parish, Woodcocks Road, Woodcocks; and Allotment 147 Ahuroa Parish, Woodcocks Road, Woodcocks	Resolutions - FIN/2017/49, FIN/2017/50
23/5/17		Report 3 Memorial Drive, New Lynn	FIN/2017/57
26/7/17		Report 55a Alnwick Street, Warkworth; 45 Oraha Road, Huapai; 32 Harbourview Road, Te Atatu’ 145a West Tamaki Road, Glen Innes; 343 Swanson Road, Ranui; 24 Waipuna Road, Mt Wellington; 26 Waipuna Road, Mt Wellington; 27b Waipuna Road, Mt Wellington; 1/77 Waipuna Road, Mt Wellington; 93 Waipuna Road, Mt Wellington; 134a Waipuna Road, Mt Wellington; and 3/136b Waipuna Road, Mt Wellington	FIN/2017/97
17/4/18		Report – Unlock Panmure - 59 Mountain Road, Mount Wellington; 59a Mountain Road, Mount Wellington; 3 Mountwell Crescent, Mount Wellington; 7 Mountwell Crescent, Mount Wellington; 3 Kings Road, Panmure; 15 Forge Way, Mount Wellington; 7 and 9 Jellicoe Road, Mount Wellington; 30-34 Potaka Lane, Panmure; 486-492 Ellerslie-Panmure Highway, Mt Wellington; 516 Ellerslie-Panmure Highway, Mount Wellington; Former 528 Ellerslie-Panmure Highway, Mount Wellington; 530 Ellerslie-Panmure Highway, Mount Wellington; 532-534 Ellerslie-Panmure Highway, Mount Wellington; 535 Ellerslie-Panmure Highway, Mount Wellington; 536 Ellerslie-Panmure Highway, Mount Wellington; 7-11 Queens Road, Panmure; 39-41 Queens Road, Panmure; 11-13 Lagoon Drive, Panmure; 16 Lagoon Drive, Panmure; 20 Lagoon Drive, Panmure; 22 Lagoon Drive, Panmure; 26 Lagoon Drive, Panmure; 28 Lagoon Drive, Panmure; 30 Lagoon Drive, Panmure; 32-34 Lagoon Drive, Panmure; 1-19/10 Basin View Lane, Panmure; 23 Domain Road, Panmure; and 28-30 Pilkington Road, Mount Wellington.	FIN/2018/59
15/8/17		Report 187 Flat Bush School Road, Flat Bush;	FIN/2017/108
		Report Unlock Old Papatoetoe - 17 St George Street, Papatoetoe; part 27 St George Street, Papatoetoe; 104 St George Street, Papatoetoe; and 109 St George Street, Papatoetoe	FIN/2017/109
		Report 31-35 Mill Road, Helensville	FIN/2017/110
24/10/17		Report 19 Anzac Avenue, Browns Bay; 10 Felton Matthew Avenue, St Johns; and part Bombay Road, Bombay	Resolutions FIN/2017/144, FIN/2017/145
21/11/17		Report Unlock Avondale Unlock Avondale – 93-99 Rosebank Road, Avondale	FIN/2017/168
12/12/17		Report 80 Vincent Street, Howick (motion lost); 41 Cheshire Street, Parnell; 108 Hepburn Street, Freemans Bay; 9 Matama Street, Glen Eden; and 58/7 Rowlands Road, Mt Wellington	FIN/2017/204
12/12/17		Report Land exchange at Hillary Crescent, Belmont and Northboro Reserve – Recommendation from the Environment and Community Committee	FIN/2017/207
27/2/18		Report 61-117 Clark Road, Hobsonville; and Report 37 New Windsor Road, Avondale (SPO)	FIN/2018/8 FIN/2018/11
20/3/18		Report 3.8ha of reserve land in Upper Harbour Local Board for New Zealand Transport Agency Northern Corridor Improvements	FIN/2018/18
17/4/18		Report – 156 Blockhouse Bay, Avondale; 2a Stokes Road, Mt Eden; 570 Great South Road, Papatoetoe; 139 Kolmar Road, Papatoetoe; and 66R Hallberry Road, Mangere East	FIN/2018/60
	24/7/18	Report – 132 Green Lane East, Greenlane; 28 Lockwood Road, Papakura; Adjacent to 1/18 Edwin Freeman Place Ranui; and Adjacent 18 Parrs Cross Road, Henderson.	FIN/2018/113
	18/9/18	Report – 30R Birmingham Road, Otara; and 8 Hiwi Crescent, Stanmore Bay	FIN/2018/136

Budget Update:

Date	Property address(es)	Resolution
13/12/16	Report Additional OPEX budget of up to $104,000 to conduct a by-election for a Howick Local Board Member; and release of $2.7m from existing budget for Putney Way streetscape upgrade, ahead of the Transform Manukau business case	FIN/2016/164
21/3/17	Report Additional CAPEX budget of $960,000 to complete Freyberg Place upgrade; new OPEX budget of $80,000 for Karangahape Road destination marketing; contribution of $300 to the city feature lighting project (led by Heart of the City) – both funded from the City Centre Targeted Rate reserve.	FIN/2017/29
20/6/17	Report Conversion of $3.1m CAPEX budget for multi-purpose community facility in Takanini	FIN/2017/90
26/7/17	Report Purchase of additional trains (rescinded 24/10/17 FIN/2017/189)	FIN/2017/98
19/9/2017	Report Release and allocate Takapuna off-street car park reserve fund $4,269611 to the Gasometer public car park project; release $6.1m form existing Transform Manukau $2.6 CAPEX and $2m OPEX and Transform Onehunga $1.5 OPEX.	FIN/2017/123
24/10/17	Report Approve procurement of 15 3-car electric multiple units of $133m; release of Franklin Parking Reserve Fund ($128,214) for upgrade of carpark at Kitchener Road, Waiuku; OPEX of $828,000 for two by-elections; OPEX budget of $115,400 for by-election for Waitemata Local Board.	FIN/2017/141
12/12/17	Report Update on the purchase of additional trains for Metro Rail	FIN/2017/205
27/2/18	Report Up to $3.2m CAPEX for fit-out for ATEED office and up to $0.8m OPEX for make good of current head office; $3.85m CAPEX for Rawene remedial works; updated city centre targeted rate-funded work programme; and property acquisitions at 155-167 Fanshawe Street and 100 Halsey Street, Auckland	Resolutions - FIN/2018/17, FIN/2018/18
17/4/18	Report Up to $740,000 of additional expenditure ($655,000 OPEX and $85,000 CAPEX) to manage kauri dieback; two additional FTE employees and out-sourced contractors to manage the closures and noting additional expenditure to be prioritised for kauri dieback work such as track improvements, upgrades, landowner support, hygiene station upgrades and washdown facilities.	FIN/2018/65

No.	Title	Page
a	11 September 2018 – Memo from Group Financial Controller regarding the draft 2017/2018 Annual Report and Summary Annual Report for the Auckland Council and group (Under Separate Cover)
b	18 September 2018 – Workshop – Current Rating Issues (Under Separate Cover)

[1] Note the Group’s working definition of taxation in this context is economic instruments that can be potentially revenue raising for central or local government and improve environmental outcomes.

[2] Land affected by changes in zoning, consents or other specified changes may be taxed on sale, if the sale is within 10 years of acquisition. If at least 20% of the gain on disposal can be attributed to the change, the whole gain is taxable; however, the taxable amount is effectively reduced by a deduction equal to 10% of the gain multiplied by each year the taxpayer has owned the land.

Chairperson	Cr Ross Clow
Deputy Chairperson	Cr Desley Simpson, JP
Members	Cr Josephine Bartley	Cr Penny Hulse
	Cr Dr Cathy Casey	Cr Mike Lee
	Deputy Mayor Cr Bill Cashmore	Cr Daniel Newman, JP
	Cr Fa’anana Efeso Collins	Cr Greg Sayers
	Cr Linda Cooper, JP	Cr Sharon Stewart, QSM
	Cr Chris Darby	IMSB Chair David Taipari
	Cr Alf Filipaina	Cr Sir John Walker, KNZM, CBE
	Cr Hon Christine Fletcher, QSO	Cr Wayne Walker
	Mayor Hon Phil Goff, CNZM, JP	Cr John Watson
	Cr Richard Hills	Cr Paul Young
	IMSB Member Terrence Hohneck

Item	Format	Month
Weathertightness issues and provisions	Workshop	To be confirmed
Colin Dale Park	Committee	20 November
Treasury and Debt management	Workshop	21 November
Rating religious premises	Committee	20 November

Author	Sara Hay - Head of Financial Transformation
Authoriser	Matthew Walker - Group Chief Financial Officer

Author	Sandra Gordon - Senior Governance Advisor
Authoriser	Matthew Walker - Group Chief Financial Officer