I hereby give notice that an extraordinary
meeting of the Governing Body will be held on:
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Date:
Time:
Meeting Room:
Venue:
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Thursday, 20
June 2019
1.30pm
Reception
Lounge
Auckland Town Hall
301-305 Queen Street
Auckland
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Tira Kāwana / Governing Body
OPEN AGENDA
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MEMBERSHIP
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Mayor
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Hon Phil Goff, CNZM, JP
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Deputy Mayor
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Cr Bill Cashmore
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Councillors
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Cr Josephine Bartley
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Cr Mike Lee
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Cr Dr Cathy Casey
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Cr Daniel Newman, JP
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Cr Ross Clow
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Cr Greg Sayers
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Cr Fa’anana Efeso Collins
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Cr Desley Simpson, JP
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Cr Linda Cooper, JP
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Cr Sharon Stewart, QSM
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Cr Chris Darby
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Cr Sir John Walker, KNZM, CBE
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Cr Alf Filipaina
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Cr Wayne Walker
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Cr Hon Christine Fletcher, QSO
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Cr John Watson
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Cr Richard Hills
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Cr Paul Young
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Cr Penny Hulse
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(Quorum 11 members)
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Sarndra O'Toole
Team Leader Governance Advisors
15 June 2019
Contact Telephone: (09) 890 8152
Email: sarndra.otoole@aucklandcouncil.govt.nz
Website: www.aucklandcouncil.govt.nz
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Terms of Reference
Those powers which cannot legally be delegated:
(a) the
power to make a rate
(b) the
power to make a bylaw
(c) the
power to borrow money, or purchase or dispose of assets, other than in
accordance with the long term plan
(d) the
power to adopt a long term plan, annual plan, or annual report
(e) the
power to appoint a chief executive
(f) the
power to adopt policies required to be adopted and consulted on under the Local
Government Act 2002 in association with the long-term plan or developed for the
purpose of the local governance statement
(g) the
power to adopt a remuneration and employment policy.
Additional
responsibilities retained by the Governing Body:
(a) approval
of long-term plan or annual plan consultation documents, supporting information
and consultation process prior to consultation
(b) approval
of a draft bylaw prior to consultation
(c) resolutions
required to be made by a local authority under the Local Electoral Act 2001,
including the appointment of electoral officer
(d) adoption
of, and amendment to, the Committee Terms of Reference, Standing Orders and
Code of Conduct
(e) relationships
with the Independent Māori Statutory Board, including the funding
agreement and appointments to committees
(f) approval
of the Unitary Plan
(g) overview
of the implementation and refresh of the Auckland Plan through setting
direction on key strategic projects (e.g. the City Rail Link and the
alternative funding mechanisms for transport) and receiving regular reporting
on the overall achievement of Auckland Plan priorities and performance
measures.
Exclusion of the public – who
needs to leave the meeting
Members of the public
All members of the public must leave the
meeting when the public are excluded unless a resolution is passed permitting a
person to remain because their knowledge will assist the meeting.
Those who are not members of the public
General principles
·
Access to confidential information is managed on a “need to
know” basis where access to the information is required in order for a
person to perform their role.
·
Those who are not members of the meeting (see list below) must
leave unless it is necessary for them to remain and hear the debate in order to
perform their role.
·
Those who need to be present for one confidential item can remain
only for that item and must leave the room for any other confidential items.
·
In any case of doubt, the ruling of the chairperson is final.
Members of the meeting
·
The members of the meeting remain (all Governing Body members if
the meeting is a Governing Body meeting; all members of the committee if the
meeting is a committee meeting).
·
However, standing orders require that a councillor who has a
pecuniary conflict of interest leave the room.
·
All councillors have the right to attend any meeting of a
committee and councillors who are not members of a committee may remain,
subject to any limitations in standing orders.
Independent Māori Statutory Board
·
Members of the Independent Māori
Statutory Board who are appointed members of the committee remain.
·
Independent Māori Statutory Board
members and staff remain if this is necessary in order for them to perform
their role.
Staff
·
All staff supporting the meeting (administrative, senior
management) remain.
·
Other staff who need to because of their role may remain.
Local Board members
·
Local Board members who need to hear the matter being discussed
in order to perform their role may remain. This will usually be if the
matter affects, or is relevant to, a particular Local Board area.
Council Controlled Organisations
·
Representatives of a Council Controlled Organisation can remain
only if required to for discussion of a matter relevant to the Council Controlled
Organisation.
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Governing Body
20 June 2019
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ITEM TABLE OF CONTENTS PAGE
1 Affirmation 7
2 Apologies 7
3 Declaration of
Interest 7
4 Petitions 7
5 Public Input 7
6 Local Board
Input 7
7 Extraordinary
Business 7
8 Adoption of the
Annual Budget 2019/2020 and the amendment to the 10-year Budget 2018-2028 9
9 Rates setting
2019/2020 165
10 Consideration
of Extraordinary Items
His Worship the Mayor will read the
affirmation.
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 Petitions
There will be no petitions section.
5 Public
Input
There will be no public input section.
6 Local
Board Input
There will be no local board input sectin.
7 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.”
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Governing Body
20 June 2019
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Adoption
of the Annual Budget 2019/2020 and the amendment to the 10-year Budget
2018-2028
File No.: CP2019/09282
Te take mō te
pūrongo
Purpose of the report
1. To
adopt the Annual Budget 2019/2020 (Annual Plan) and the amendment to the
10-year Budget 2018-2028 (Long-term Plan) regarding property transfers.
Whakarāpopototanga matua
Executive summary
Consultation and feedback
2. On 13 February 2019, the Governing Body adopted the Consultation
Document and Supporting Information for the Annual Budget 2019/2020,
incorporating a proposed amendment to the 10-year Budget 2018-2028.
3. The
proposed amendment provided for the transfer of legal ownership of around
$758 million of waterfront properties[1]
from Panuku Development Auckland (Panuku) to Auckland Council.
4. Public
consultation for the annual budget and the proposed amendment ran from
17 February to 17 March 2019 and the feedback was presented to the Finance and
Performance Committee on 17 April 2019.
5. Reports
summarising the feedback received relevant to each local board were considered
by each local board between 4 April and 1 May 2019. Local board views were then
presented to the Finance and Performance Committee at a workshop on 8 May 2019.
Finalising the Annual Budget 2019/2020
6. On
22 May 2019, following the consideration of public feedback received and other
relevant information, the Governing Body agreed the key decisions needed to
finalise the Annual Budget 2019/2020. The Annual Budget has been prepared
reflecting these decisions detailed in Attachment A of this report. In
particular, it includes:
· prospective financial
statements and other financial information based on the budget decisions made
on 22 May 2019
· rating policy, reflecting
decisions made on 22 May 2019
· local board agreements and
other local content – as adopted by local boards between 4 and 6 June 2019.
7. On
7 June 2019, the Tūpuna Maunga Authority approved the Tūpuna Maunga
Authority Operational Plan 2019/2020 and the summary of the Tūpuna Maunga
Authority Operational Plan 2019/2020 for inclusion in the Annual Budget
2019/2020. These are Attachments B and C of this report respectively.
8. The
Local Government Act 2002 requires the council to adopt its annual plan (the
Annual Budget 2019/2020) before 1 July 2019. Following adoption, staff will
finalise documentation and make it publicly available.
Finalising the amendment to the 10-year Budget 2018-2028
9. On
22 May the Governing Body agreed to proceed to amend the 10-year Budget
2018-2028 regarding property transfers. Attachment D of this report sets out
the decisions.
10. The
Audit and Risk Committee has been involved in the amendment to the 10-year
Budget process since mid-February 2019. On 5 June 2019 the Audit and Risk
Committee received a report on the key controls and risks relating to the
amendment to the 10-year Budget. The Audit and Risk Committee resolved as
follows:
“Resolution number AUD/2019/32
b) advise
the Governing Body that effective internal control and risk management
processes have been followed during the preparation of the amendment to the
10-year Budget 2018-2028
c) advise
to the Governing Body that there are no significant outstanding audit
issues.”
11. The
amendment to the 10-year Budget reflects the decisions made on 22 May 2019 and
given the documentation attached to this report has been confirmed as being
compliant with both legal and audit requirements, only limited minor changes
can be made without triggering further audit and legal review.
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Ngā tūtohunga
Recommendation/s
That the Governing Body:
a) adopt
the amendment to the 10-year Budget 2018-2028 (Long-term Plan) regarding property
transfers
b) agree
the Tūpuna Maunga Authority Operational Plan 2019/2020 and Summary of
the Tūpuna Maunga Authority Operational Plan 2019/2020 for inclusion in
the Annual Plan 2019/2020
c) adopt
the Annual Budget 2019/2020 (Annual Plan), including 21 local board
agreements
d) delegate the authority and responsibility for agreeing any
required minor editorial changes and the correction of minor errors to the
Annual Budget 2019/2020 and the amendment to the 10-year Budget 2018-2028 to
the chair of the Finance and Performance Committee, and the Group Chief
Financial Officer.
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Horopaki
Context
12. Once
every three years, the council is required to adopt a long-term plan and in the
intervening years an annual plan. These plans set out the service levels and
budgets for the coming year and provide the basis on which the council’s
rates are set.
13. For
each financial year, the council must have a local board agreement (as agreed
between the Governing Body and the local board) for each local board area.
These local board agreements set out priorities, budgets and intended levels of
service for local activities, and the capital and operating expenditure
required to fund these activities. The local board agreements for the 2019/2020
financial year have been developed as part of the annual plan process and have
been adopted by the local boards.
14. For
each financial year, the Tūpuna Maunga Authority and the council must
agree an annual operational plan to provide a framework in which the council
will carry out its functions for the routine management of the maunga and
administered lands. The Tūpuna Maunga Authority Operational Plan must be prepared
and adopted concurrently with the council’s annual plan and be included
in summary form in the annual plan.
Tātaritanga me ngā
tohutohu
Analysis and advice
Consultation and feedback
15. On 13 February 2019, the Governing Body adopted the Consultation
Document and Supporting Information for the Annual Budget 2019/2020,
incorporating the proposed amendment to the 10-year Budget and agreed the
approach to consultation. The Deputy-Auditor General supplied an independent
auditors’ report which was inserted into the Consultation Document.
16. Public
consultation ran between 17 February 2019 and 17 March 2019 and aligned
consultation with the Water Strategy.
17. Reports
summarising the feedback received relevant to each local board area were
considered by each local board between 4 April and 1 May 2019.
18. In
addition to a feedback summary report, all feedback received was made available
to elected members prior to the Finance and Performance Committee workshop on
17 April 2019. In May 2019, the feedback summary report, along with
all submissions, were made available to the public via the Auckland Council
website.
Finalising the Annual Budget 2019/2020
19. On
22 May 2019, the Finance and Performance Committee recommended to the Governing
Body the decisions required to finalise the Annual Budget 2019/2020. The
Governing Body subsequently agreed these decisions as reflected in Attachment A
of this report. This included decisions required to finalise local board
agreements collated in Volume 2.
20. Local
board business meetings were held between 4 and 6 June 2019, where all 21 local
boards adopted their agreements for 2019/2020. The resolutions can be
found in Attachment E of this report.
21. On
7 June 2019, the Tūpuna Maunga Authority approved the Tūpuna Maunga
Authority Operational Plan 2019/2020 and the summary of the Tūpuna Maunga
Authority Operational Plan 2019/2020 for inclusion in the Annual Budget
2019/2020. These documents are Attachments B and C respectively to this
report.
Finalising the amendment to the 10-year Budget 2018-2028
documentation
22. Following
the decisions on 22 May 2018 (GB/2019/40) Attachment D has been prepared that encompasses the amendment to
the 10-year Budget for adoption today. These are:
Volume 1 of 3, part 2.2, Prospective
Financial Statements and Notes, Note 5: Auckland Council (Parent) financial
statements
· Prospective
Statement of Comprehensive revenue and expenditure
· Prospective
Statement of Changes in Equity
· Prospective
Statement of Financial Position
· Prospective
Statement of Cash Flows
Volume 2 of 3, part 3.7
· CCO Accountability
Policy
Volume 2 of 3, part 5.1
· Overview of Auckland
Council’s CCOs.
23. When
preparing, consulting on and making decisions on the amendment to the 10-year
Budget, the council has followed a thorough process, including considering:
· the
significance and materiality of the changes
· the
extent of the council’s resources
· statutory
decision-making practices in the Local Government Act 2002 (Part 6)
· content
requirements for a long-term plan, and
· financial
management requirements.
24. Council’s
internal legal team has reviewed the amendment to the 10-year Budget and has
confirmed that it complies with the requirements of the Local Government Act
2002, the Local Government (Auckland Council) Act 2009, and related
legislation, and that it reflects the decisions made by the Governing Body on
22 May 2019.
25. Audit
NZ has worked closely with council staff finalising the amendment to the
10-year Budget documentation. Their feedback has been incorporated. A final
Auditor’s report will be received at this meeting and will be
incorporated into the final documentation.
26. On 5 June 2019 the Audit and Risk Committee received a report on the
key controls and risk relating to the amendment of the 10-year Budget. The Audit and Risk Committee resolved as follows:
“Resolution number AUD/2019/32
b) advise
the Governing Body that effective internal control and risk management
processes have been followed during the preparation of the amendment to the
10-year Budget 2018-2028
c) advise
to the Governing Body that there are no significant outstanding audit
issues.”
27. Given
the document reflects the decisions made on 22 May 2019 and that the document
attached to this report has been confirmed as being compliant with both legal
and audit requirements, only limited minor changes can be made without
triggering further audit and legal review.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
28. The
impacts of the amendment to the 10-year Budget 2018-2028 are to transfer legal
ownership of around $758 million of waterfront properties to the Auckland
Council from Panuku, with Auckland Council giving Panuku the appropriate
delegations to continue their management and development activities.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
29. Local
boards have been involved in developing the Annual Budget 2019/2020 and the
amendment to the 10-year Budget. Prior to making final decisions, discussions
were held on 8 May 2019 between the Finance and Performance Committee and local
boards.
30. On
22 May 2019, the Finance and Performance Committee was also provided with a
summary report and all resolutions on advocacy and regional issues passed by
local boards regarding decision making for the Annual Budget 2019/2020 and the
amendment to the 10-year Budget 2018-2028.
Tauākī whakaaweawe
Māori
Māori impact statement
31. Auckland
Council group seeks to deliver outcomes across all three goals of the
Māori Responsiveness Framework. Over the 2019/2020 financial year, these
activities will focus on strategic priorities identified in Volume One, Part
One of Attachment A. Activities that contribute to
this are identified in Volume One, Part Two of Attachment A.
32. The
amendment to the 10-year Budget regarding property transfers would not alter
current arrangements between Panuku, Auckland Council and Mana Whenua.
Ngā ritenga
ā-pūtea
Financial implications
33. The
annual budget sets the council’s budget for the following financial year.
The financial decisions made on 22 May 2019 have been reflected in the final
Annual Budget 2019/2020 attached to this report.
34. There
is no material financial implication to the Auckland Council Group as a whole,
directly from the transaction of the property transfer.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
35. There
are no outstanding significant risks relating to the adoption of the Annual Budget 2019/2020 or the amendment to the 10-year Budget
2018-2028.
Ngā koringa ā-muri
Next steps
36. Adoption
of the Annual Budget 2019/2020 is required before the council can set rates for
2019/2020, which will be considered in a separate report following adoption on
this meeting agenda.
37. Following
adoption, staff will prepare the final Annual Budget 2019/2020 documentation
for publication. A digital version of the document will be available on the
council’s website and printed copies will be available to view at
libraries, service centres and local board offices. Hard copies will also be
available on request.
Ngā tāpirihanga
Attachments
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No.
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Title
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Page
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a⇨ 
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Annual Budget 2019/2020 - Volume 1 and 2 (Under
Separate Cover)
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b⇩
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Tūpuna Maunga Authority Operational Plan
2019/2020
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15
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c⇩ 
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Summary of the Tūpuna Maunga Authority
Operational Plan 2019/2020
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105
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d⇩
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Amendment to the 10-year Budget 2018-2028 regarding
property transfers
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111
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e⇩
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Local board resolutions to adopt Local Board Agreements
2019/2020
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139
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Ngā kaihaina
Signatories
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Authors
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Kylie Thompson - Programme Manager
Michael Burns - Manager Financial Strategy
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Authorisers
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Ross Tucker - General Manager, Financial Strategy and
Planning
Matthew Walker - Group Chief Financial Officer
Stephen Town - Chief Executive
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Governing Body
20 June 2019
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Governing Body
20 June 2019
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Governing Body
20 June 2019
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Governing Body
20 June 2019
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Governing Body
20 June 2019
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Governing Body
20 June 2019
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Governing Body
20 June 2019
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Governing Body
20 June 2019
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Governing Body
20 June 2019
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Governing Body
20 June 2019
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Rates setting 2019/2020
File No.: CP2019/09666
Te take mō te
pūrongo
Purpose of the report
1.
To recommend that the Governing Body set the rates for the 2019/2020
financial year.
2.
Whakarāpopototanga matua
Executive summary
2. Legislation
requires that rates are set by resolution of the Governing Body after the
adoption of the annual plan (Annual Budget 2019/2020) and that they must be set
in accordance with the:
· relevant
provisions of the council’s long-term plan (including the Revenue and
Financing Policy); and
· Funding
Impact Statement (FIS) for the 2019/2020 financial year (contained in the
Annual Budget 2019/2020).
3. The
FIS and recommendations have been prepared to reflect the decisions made on 22
May 2019 by the Governing Body.
4. The
recommendations in this report also set the instalment dates, early payment
discount, and penalties to be applied for late payment for the 2019/2020
financial year.
5. Setting
the rates will generate $1.9 billion in revenue for the council. This equates
to 37 per cent of council’s total revenue.
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Ngā tūtohunga
Recommendation/s
That the Governing Body:
a) agree
under the Local Government (Rating) Act 2002 to set rates and due dates for
the 2019/2020 financial year and to authorise the addition of penalties as
follows:
i) that
a Uniform Annual General Charge be set, for all rateable land, at $424 (including
GST) per separately used or inhabited part of a rating unit (SUIP)
ii) that
a general rate be set for all rateable land based on the capital value of the
land and at different rates in the dollar for different categories of land as
set out in the table below:
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Property category
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Rate in the dollar for
2019/2020 (including GST) ($)
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Urban business
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0.00526750
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Urban residential
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0.00188045
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Rural business
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0.00474075
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Rural residential
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0.00169241
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Farm and lifestyle
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0.00150436
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No road access
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0.00047011
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Urban
moderate-occupancy online accommodation provider
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0.00357398
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Rural
moderate-occupancy online accommodation provider
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0.00321658
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Urban
medium-occupancy online accommodation provider
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0.00272721
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Rural
medium-occupancy online accommodation provider
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0.00245449
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Zero-rated
|
0.00000000
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iii) that
a Water Quality targeted rate be set on the capital value of all rateable
land except land categorised as zero-rated, as defined for rating purposes,
of an amount of $0.00010677 (including GST) per dollar of capital value
applied to all rateable land categorised as business (Urban business and
Rural business), and $0.00006076 (including GST) per dollar of capital value to
all rateable land not categorised as business (Urban residential, Rural
residential, Farm and lifestyle, urban medium-occupancy online accommodation
provider, rural medium-occupancy online accommodation provider, urban
moderate-occupancy online accommodation provider, rural moderate-occupancy
online accommodation provider, and No road access) as defined for rating
purposes
iv) that
a Natural Environment targeted rate be set on the capital value of all
rateable land except land categorised as zero-rated, as defined for rating
purposes, of an amount of $0.00007603 (including GST) per dollar of capital
value applied to all rateable land categorised as business (Urban business
and Rural business), and $0.00004326 (including GST) per dollar of
capital value to all rateable land not categorised as business (Urban
residential, Rural residential, Farm and lifestyle, urban medium-occupancy
online accommodation provider, rural medium-occupancy online accommodation
provider, urban moderate-occupancy online accommodation provider, rural
moderate-occupancy online accommodation provider, and No road access) as
defined for rating purposes
v) that
waste management targeted rates be set differentially for different
categories of land at different fixed amounts, as set out in the table below:
|
Service
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Differential group
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Amount of targeted rate
for 2019/2020 (including GST) ($)
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Charging basis
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Base service
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Rating units in the
former Auckland City
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121.06
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Per service available
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Rating units in the
former Franklin District, Manukau City, North Shore City, Papakura
District, Rodney District and Waitakere City
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121.06
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Per SUIP
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Base service
excluding recycling
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Rating units in the
former Auckland City
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45.15
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Per service available
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Service
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Differential group
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Amount of targeted rate
for 2019/2020 (including GST) ($)
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Charging basis
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Standard refuse
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Rating units in the former
Auckland City
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129.93
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Per service available
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Rating
units in the former Manukau City
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129.93
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Per SUIP
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Large refuse
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Rating units in the
former Auckland City and Manukau City
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61.07
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Per service available
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Additional recycling
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All rating units
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75.91
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Per service available
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Food scraps
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Rating units in the
former Papakura District and the former food scraps trial area in
Northcote, Milford and Takapuna
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68.34
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Per SUIP
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Note to table: For
these purposes the various waste services are as set out in the Auckland
Waste Management and Minimisation Plan and the Funding Impact Statement in
the council’s Annual Plan 2019/2020.
vi) that
a city centre targeted rate be set differentially for all rateable land in
the urban business, urban residential, urban moderate-occupancy online
accommodation provider, and urban medium-occupancy online accommodation
provider differential categories, as defined for rating purposes, and in the
city centre area, of an amount of $0.00134668 (including GST) per dollar of
the capital value of the rating unit for urban business rating units and of a
fixed amount of $61.63 (including GST) per separately used or inhabited part
(SUIP) of a rating unit for urban residential, urban moderate-occupancy
online accommodation provider, and urban medium-occupancy online
accommodation provider rating units
vii) that an
accommodation provider targeted rate be set for all rateable land that is in
the urban business, rural business, urban moderate-occupancy
online accommodation provider, rural moderate-occupancy online accommodation
provider, urban medium-occupancy online accommodation, or rural
medium-occupancy online accommodation provider differential categories, as
defined for rating purposes, and that is located within Zones A or B, and that
is operated as Tier one, Tier two, Tier three, Tier four, Tier five, or Tier
six accommodation provider type, and be set differentially for different
categories of land per dollar of capital value of the portion of the rating
unit used for commercial accommodation purposes as set out in the table
below:
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Category
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Rate in the dollar for 2019/2020
(including GST) ($)
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Tier one
– Zone A
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0.00565965
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Tier two
– Zone A
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0.00339579
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Tier three
– Zone A
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0.00282983
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Category
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Rate in the dollar for 2019/2020
(including GST) ($)
|
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Tier four
– Zone A
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0.00169790
|
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Tier five
– Zone A
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0.00141491
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Tier six
– Zone A
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0.00084895
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Tier one
– Zone B
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0.00282983
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Tier two
– Zone B
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0.00169790
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Tier three
– Zone B
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0.00141491
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Tier four
– Zone B
|
0.00084895
|
|
Tier five
– Zone B
|
0.00070746
|
|
Tier six
– Zone B
|
0.00042447
|
Note to table: For the
purposes the accommodation provider targeted rate the various Zones and Tiers
are set out in the Funding Impact Statement in the council’s Annual
Plan 2019/2020.
viii) that a Rodney
Local Board Transport targeted rate be set for all rateable land in the
Rodney Local Board area except land categorised as zero-rated as defined for
rating purposes, of an amount of $150 (including GST) per separately used or
inhabited part of a rating unit (SUIP)
ix) that
Business Improvement District (BID) targeted rates be set for all rateable
land in the urban business or rural business differential categories, as
defined for rating purposes, within the defined Business Improvement District
areas, of a fixed amount per rating unit and/or a rate in the dollar of
capital value of the rating unit, as set out in the table below:
|
BID area
|
Fixed rate per rating unit for 2019/2020 (including
GST) ($)
|
Rate in the dollar for 2019/2020 to be multiplied by
the capital value of the rating unit
(including GST) ($)
|
|
Avondale
|
0.00
|
0.00129004
|
|
Birkenhead
|
0.00
|
0.00087804
|
|
Blockhouse
Bay
|
0.00
|
0.00144318
|
|
Browns
Bay
|
0.00
|
0.00050927
|
|
Devonport
|
250.00
|
0.00061454
|
|
Dominion
Road
|
0.00
|
0.00051867
|
|
Ellerslie
|
0.00
|
0.00206997
|
|
Glen
Eden
|
0.00
|
0.00099393
|
|
Glen
Innes
|
0.00
|
0.00102698
|
|
Greater
East Tāmaki
|
195.00
|
0.00002932
|
|
Heart
of the City
|
0.00
|
0.00042571
|
|
Howick
|
0.00
|
0.00085871
|
|
Hunters
Corner
|
0.00
|
0.00073224
|
|
Karangahape
Road
|
0.00
|
0.00047306
|
|
BID area
|
Fixed rate per rating unit for 2019/2020 (including
GST) ($)
|
Rate in the dollar for 2019/2020 to be multiplied by
the capital value of the rating unit
(including GST) ($)
|
|
Kingsland
|
0.00
|
0.00039138
|
|
Mairangi
Bay
|
250.00
|
0.00131144
|
|
Māngere
Bridge
|
0.00
|
0.00136493
|
|
Māngere
East Village
|
0.00
|
0.00029693
|
|
Māngere
Town
|
0.00
|
0.00401509
|
|
Manukau
Central
|
0.00
|
0.00031892
|
|
Manurewa
|
0.00
|
0.00102984
|
|
Milford
|
0.00
|
0.00059440
|
|
Mt
Eden Village
|
0.00
|
0.00059072
|
|
New
Lynn
|
0.00
|
0.00056539
|
|
Newmarket
|
0.00
|
0.00065555
|
|
North
Harbour
|
150.00
|
0.00008634
|
|
North
West District
|
250.00
|
0.00017654
|
|
Northcote
|
0.00
|
0.00233449
|
|
Old
Papatoetoe
|
0.00
|
0.00129408
|
|
Onehunga
|
0.00
|
0.00108473
|
|
Orewa
|
0.00
|
0.00090239
|
|
Ōtāhuhu
|
0.00
|
0.00068580
|
|
Ōtara
|
0.00
|
0.00157883
|
|
Panmure
|
0.00
|
0.00154636
|
|
Papakura
|
0.00
|
0.00072879
|
|
Parnell
|
0.00
|
0.00054160
|
|
Ponsonby
|
0.00
|
0.00064550
|
|
Pukekohe
|
0.00
|
0.00052739
|
|
Remuera
|
0.00
|
0.00110559
|
|
Rosebank
|
0.00
|
0.00038817
|
|
South
Harbour
|
0.00
|
0.00044042
|
|
St
Heliers
|
0.00
|
0.00107267
|
|
Takapuna
|
0.00
|
0.00040090
|
|
Te
Atatu
|
0.00
|
0.00112133
|
|
Torbay
|
0.00
|
0.00093853
|
|
Uptown
|
0.00
|
0.00016257
|
|
Waiuku
|
0.00
|
0.00096234
|
|
Wiri
|
0.00
|
0.00022056
|
x) that
the Ōtara-Papatoetoe and Māngere-Ōtāhuhu swimming pool
targeted rates be set for all rateable land in the urban residential, rural
residential, urban moderate-occupancy online accommodation
provider, urban medium-occupancy online accommodation provider, rural
moderate-occupancy online accommodation provider, or rural medium-occupancy
online accommodation provider differential categories, as defined for
rating purposes, located in the respective
Māngere–Ōtāhuhu Local Board or Ōtara-Papatoetoe
Local Board area, of a fixed amount per separately used or inhabited part of
a rating unit (SUIP), as set out in the table below:
|
Local board area
|
Fixed rate for each
separately used or inhabited part of a rating unit for 2019/2020 (including
GST) ($)
|
|
Māngere-Ōtāhuhu
|
32.64
|
|
Ōtara-Papatoetoe
|
30.74
|
xi) that
the Riverhaven Drive targeted rate be set on land in Riverhaven Drive,
Rodney, in respect of which the council has provided financial assistance for
the construction of a road that gives access to the rating units, of an
amount of $10,317.02 (including GST) per rating unit
xii) that
the Waitakere rural sewerage targeted rate be set for all land in the
district of the former Waitakere City Council which has an on-site waste
management system and in respect of which the council has available the
service of pumping out the system and which is scheduled to take place within
the three-year period commencing 1 July 2018, of an amount of $198.43
(including GST) for each such on-site waste management system
xiii) that the
Retro-fit Your Home targeted rate be set on land in respect of which the
council has provided financial assistance under the Retro-fit your home
scheme, at different levels based on the extent of the outstanding assistance
by reference to the year that the ratepayer started repaying the financial
assistance by this targeted rate, of an amount set out in the table below:
|
Year of repayment
|
Rate in the dollar for
2019/2020 to be multiplied by the ratepayers outstanding balance as at 30
June 2019 (including GST) ($)
|
|
1
|
0.14473001
|
|
2
|
0.15842723
|
|
3
|
0.17612165
|
|
4
|
0.19981239
|
|
5
|
0.23309779
|
|
6
|
0.28317444
|
|
7
|
0.36683420
|
|
8
|
0.53445250
|
xiv) that the
Kumeu Huapai Riverhead Wastewater targeted rate be set on land in respect of
which the council has provided financial assistance to connect to the Kumeu
Huapai Riverhead pressurised wastewater scheme, at different levels based on
the extent of the outstanding assistance by reference to the year that the
ratepayer started repaying the financial assistance by this targeted rate, of
an amount set out in the table below:
|
Year of repayment
|
Rate in the dollar for
2019/2020 to be multiplied by the ratepayers outstanding balance as at 30
June 2019 (including GST) ($)
|
|
1
|
0.11695996
|
|
5
|
0.14371006
|
|
7
|
0.16643951
|
xv) that the
On-site wastewater systems (septic tank) upgrades targeted rate be set on
land in respect of which the council has provided financial assistance for
the replacement or upgrade of failing on-site wastewater systems (septic
tanks) in the west coast lagoons and Little Oneroa catchments, at different
levels based on the extent of the outstanding assistance by reference to the
year that the ratepayer started repaying the financial assistance by this
targeted rate, of an amount set out in the table below:
|
Year of repayment
|
Rate in the dollar for
2019/2020 to be multiplied by the ratepayers outstanding balance as at 30
June 2019 (including GST) ($)
|
|
1
|
0.11695996
|
|
2
|
0.12214511
|
xvi) that the
Point Wells Wastewater targeted rate be set on land in respect of which the
council has provided financial assistance to connect to a pressure wastewater
collection system in Point Wells, of an amount per separately used or
inhabited part of a rating unit based on the extent of the financial
assistance as shown in the following table:
|
Total assistance
provided
|
Amount of targeted rate
per rating unit for 2019/2020 (including GST) ($)
|
|
$8,000
|
$674.60
|
|
$8,500
|
$716.76
|
|
$9,000
|
$758.92
|
|
$9,500
|
$801.08
|
|
$10,000
|
$843.25
|
xvii) that the
Jackson Crescent Wastewater targeted rate be set on land in respect of which
the council has provided financial assistance to connect to a wastewater
collection scheme in the Jackson Crescent, Martins Bay area, of an amount of
$608.88 (including GST) per rating unit
xviii) that for the purposes of
the above rates, the definitions of accommodation provider, the city centre
area, the various Business Improvement Districts, the expression
"separately used or inhabited part of a rating unit" and the
differential categories for rates charged on a differential basis are as set
out in the Funding Impact Statement in the council's Annual Budget 2019/2020
xix) that for the
2019/2020 financial year, the rates be payable in four equal instalments, on
the following due dates:
|
Instalment
|
Due Date
|
|
1
|
30 August 2019
|
|
2
|
28 November 2019
|
|
3
|
28 February 2020
|
|
4
|
28 May 2020
|
xx) that a
penalty of ten per cent of any portion of any instalment of rates assessed in
the 2019/2020 rating year that is not paid by the due date for payment of
that instalment be added to the amount of unpaid rates. The penalty will be
added on the day following the due date, being 31 August 2019, 29 November
2019, 29 February 2020, and 29 May 2019 respectively
xxi) that a further
penalty of ten per cent of any rates assessed in any financial year prior to
1 July 2019 that remain unpaid on 1 July 2019, be added on 2 July 2019
xxii) that a further
penalty of ten per cent of any rates to which a penalty has been added under
resolution (xxi) above if those rates are unpaid on 2 January 2020, be added
on 3 January 2020
b) that
in accordance with the council’s Early Payment Discount Policy the
discount for the early payment of rates be set at 0.63 per cent of the
2019/2020 rates, if those rates, together with any outstanding prior
years’ rates and penalties, are paid in full on or before the due date
of the first instalment (30 August 2019).
|
Horopaki
Context
6. The
long-term plan (10-year Budget 2018-2028) includes the following rates
decisions for 2019/2020:
· an
average general rates increase of 2.5 per cent
· an
increase to the Uniform Annual General Charge of 2.5 per cent
· continuation
in the reduction in the business differential.
7. At
its meeting on 22 May 2019, the Governing Body also agreed the Finance and
Performance Committee recommendations regarding rates policy issues for
inclusion in the Annual Budget 2019/2020. These included:
· retaining
the Waitākere rural sewerage (pump-out) service and the associated
targeted rate until June 2021
· increasing
the base waste management targeted rate[2] to $121.06 (incl. GST)
· introducing
a food scraps targeted rate of $68.34 (incl. GST) in the Northcote, Milford and
Takapuna trial area
· adjusting
the urban rating area boundary to include around 400 properties in the urban
area
· introducing
a zero-rated general rates differential for some land used by religious
organisations.
Tātaritanga me ngā
tohutohu
Analysis and advice
Rates resolution
8. For
the council to assess rates for the 2019/2020 financial year, section 23 of the
Local Government (Rating) Act 2002 (LG(R)A) requires the council to set the
rates by resolution. The resolutions contained in this report are
consistent with the relevant legislation, the long-term plan (10-year Budget
2018-2028), and Annual Budget 2019/2020.
9. The
LG(R)A requires that the instalment due dates and any penalties must also be
set in the same resolution as those used to set the rates. The resolutions
necessary for the Governing Body to set the rates, instalment due dates and
penalties for the 2019/2020 financial year are included in the recommendations
in this report.
Early payment discount, late payment penalties and instalment
dates
10. This report
recommends that the rates be payable in four equal instalments on:
· instalment
1: 30 August 2019
· instalment
2: 28 November 2019
· instalment
3: 28 February 2020
· instalment
4: 28 May 2020.
11. Staff
recommend that a ten per cent penalty be payable for late payment of rates for
each rates instalment due date, and that a ten per cent penalty on the previous
years’ rates arrears be added at the beginning of the financial year (or
five working days after the rates resolution, whichever is the later) and then
again six months later. It is necessary to set the penalty rate at ten per cent
to discourage the use of the council as a bank by ratepayers. Costs incurred by
the council from the late payment of rates must inevitably be met by those
ratepayers that pay on time. Most councils use a ten per cent penalty.
12. The early
payment discount policy is available to ratepayers who pay their full
year’s rates before the due date of the first rates instalment. Under
this policy, the council provides a discount based on the council’s
forecast short term borrowing cost, 1.7 per cent for 2019/2020. This passes on
council’s interest cost saving to those ratepayers who pay early. For the
early payment discount to remain cost neutral the early payment discount rate
should be set at 0.63 per cent.
13. The
resolutions necessary for the Governing Body to set the early payment discount,
late payment penalty, and instalment dates are included in the recommendations
in this report.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
14. The
recommendations in this report have been checked by the legal department for
legislative compliance.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
15. The Governing
Body has decision-making authority for setting rates. Local boards’ views
on the rating policy proposals were considered as part of decision making on
the Annual Budget 2019/2020 on 22 May 2019.
Tauākī whakaaweawe
Māori
Māori impact statement
16. The council
does not hold information on the ethnicity of ratepayers, so is not able to identify
the exact impact of the policy options on Māori. The rates recommendations
in this report will have a similar impact on Māori as it will on other
ratepayers.
17. Marae are not
affected by the proposed changes to rating of religious use land. Marae have
separate rates exemptions up to two hectares under legislation. Rates on marae
that exceed two hectares are fully remitted under council’s Māori
freehold land rates remission and postponement policy.
Ngā ritenga
ā-pūtea
Financial implications
18. Setting the
rates will generate $1.9 billion in revenue for the council. This equates to 37
per cent of council’s total revenue.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
19. Rates may be
set any time after the Annual Budget 2019/2020 is adopted. However, the budget
has been prepared based on the assumption that rates will be invoiced in early
August. Delays setting the rates may cause late delivery of the first
instalment rates assessment/invoice and delay when penalties can be applied. This
would result in increased interest costs through the late receipt of rates
revenue and result in increased administrative costs.
Ngā koringa ā-muri
Next steps
20. A copy of the
rates resolution will be publicly available on council’s website within
20 working days of adopting the rates resolution.
21. The rates
assessment will take place in July and ratepayers will receive the first
instalment invoice from 1 August 2019.
Ngā tāpirihanga
Attachments
There are no attachments for
this report.
Ngā kaihaina
Signatories
|
Authors
|
Eric Wen - Senior Advisor - Financial Policy
Andrew Duncan - Manager Financial Policy
Aaron Matich - Principal Advisor – Financial
Policy
Beth Sullivan - Principal Advisor Policy
|
|
Authorisers
|
Ross Tucker - General Manager, Financial Strategy and
Planning
Matthew Walker - Group Chief Financial Officer
Stephen Town - Chief Executive
|
Panuku has legal ownership of the
council’s waterfront property – land, buildings and the
associated water rights relating to city-centre waterfront public space,
development sites and marinas.
