Kōmiti ā Pūtea, ā Mahi Hoki /
Finance and Performance Committee

 

OPEN MINUTES

 

 

 

Minutes of an extraordinary meeting of the Finance and Performance Committee held in the Reception Lounge, Auckland Town Hall, 301-305 Queen Street, Auckland on Tuesday, 10 December 2019 at 9.30am.

 

present

 

Chairperson

Cr Desley Simpson, JP

 

Deputy Chairperson

Cr Shane Henderson

 

Members

Cr Josephine Bartley

From 9.47am, Item 7

 

IMSB Member Renata Blair

 

 

Cr Dr Cathy Casey

 

 

Deputy Mayor Cr Bill Cashmore

 

 

Cr Fa’anana Efeso Collins

 

 

Cr Pippa Coom

From 9.33am

 

Cr Linda Cooper, JP

From 9.33am

 

Cr Angela Dalton

 

 

Cr Chris Darby

From 9.33am

 

Cr Alf Filipaina

 

 

Cr Hon Christine Fletcher, QSO

 

 

Mayor Hon Phil Goff, CNZM, JP

From 9.33am

 

Cr Richard Hills

From 9.33am

 

Cr Tracy Mulholland

 

 

Cr Daniel Newman, JP

From 9.41am, Item 7

 

Cr Greg Sayers

From 9.38am, Item 7

 

Cr Sharon Stewart, QSM

 

 

IMSB Chair David Taipari

From 9.43, Item 7

 

Cr Wayne Walker

From 9.38am, Item 7

 

Cr John Watson

From 9.34am, Item 7

 

 

ABSENT

 

Member

Cr Paul Young

 

 

 

 


Finance and Performance Committee

10 December 2019

 

 

 

 

A minute’s silence was observed to acknowledge the Whakaari/White Island tragedy.

 

 

Cr P Coom joined the meeting at 9.33am.
Cr L Cooper joined the meeting at 9.33am.
Cr R Hills joined the meeting at 9.33am.
Cr C Darby joined the meeting at 9.33am.

 

1          Apologies

 

Resolution number FIN/2019/125

MOVED by Cr D Simpson, seconded by Cr S Henderson:  

That the Finance and Performance Committee:

a)         accept the apologies from Cr P Young for absence.

CARRIED

Note:   An apology was subsequently received from Cr G Sayers for lateness.

 

 

2          Declaration of Interest

 

There were no declarations of interest.

 

 

3          Petitions

 

There were no petitions.

 

 

4          Public Input

 

There was no public input.

 

 

5          Local Board Input

 

There was no local board input.

 

 

6          Extraordinary Business

 

There was no extraordinary business.

 

 

Mayor P Goff entered the meeting at 9.33am.

 


 

 

 

7

Mayoral Proposal for the Annual Budget 2020/2021

 

Cr J Watson joined the meeting at 9.33am.

Cr W Walker joined the meeting at 9.38am.
Cr G Sayers joined the meeting at 9.38am.
Cr D Newman joined the meeting at 9.41am.
IMSB Chair D Taipari joined the meeting at 9.43am.
Cr J Bartley joined the meeting at 9.47am.

Cr E Collins left the meeting at 9.47am.

 

Resolution number FIN/2019/126

MOVED by Mayor P Goff, seconded by Cr D Simpson:  

That the Finance and Performance Committee:

a)      receive the Mayoral Proposal for the Annual Budget 2020/2021.

b)      note the key matters included in the proposal as follows:

i)       a $2.7 billion investment in capital assets and operating expenditure of $4.4 billion

ii)      3.5 per cent increase in average general rates and the Uniform Annual General Charge

iii)     continuation of reduction in the business differential

iv)     no changes to Regional Fuel Tax, Water Quality Targeted Rate, Natural Environment Targeted Rate, Accommodation Provider Targeted Rate (judicial review outcome pending)

v)      cumulative annual savings of $63 million by 2020/2021, including at least $16 million in 2020/2021, $24 million saved in 2018/2019 and $23 million budgeted saving in 2019/2020

vi)     progressively extending the living wage to contracted cleaners over the next three years with expenditure of up to $1.3 million in 2020/2021

vii)    continued support in the council’s coordination and facilitation role in tackling homelessness in Auckland at $500,000 per annum for the next three years

viii)   initial response to increased urgency of climate action ahead of the next 10-year Budget, including:

A)     up to $6.3 million for decarbonising the council’s fleet over the next five years funded from existing budget

B)     $9 million for phasing out gas boilers in council aquatic centres over the next five years, with $1.5 million in 2020/2021

C)     these two measures will reduce the council’s emissions by nearly 20 per cent

D)     $2.7 million for planting an additional half a million trees over the next three years, totalling a million and a half trees this term

E)      $900,000 for foundation work for climate change interventions.

ix)     $4.13 million per annum to increase the subsidy for child fares across public transport services (excluding exempt ferry services).

 

 

 

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

For

Cr J Bartley

IMSB Member R Blair

Cr C Casey

Deputy Mayor BC Cashmore

Cr P Coom

Cr L Cooper

Cr A Dalton

Cr C Darby

Cr A Filipaina

Mayor P Goff

Cr S Henderson

Cr R Hills

Cr T Mulholland

Cr D Newman

Cr G Sayers

Cr D Simpson

Cr S Stewart

IMSB Chair D Taipari

Cr W Walker

Cr J Watson

Against

Cr C Fletcher

Abstained

 

The motion was declared carried by 20 votes to 1.

CARRIED

 

 

8

Annual Budget 2020/2021 - consultation material overview

 

Cr E Collins returned to the meeting at 11.02 am.

 

MOVED by Cr S Henderson, seconded by Cr D Simpson:  

That the Finance and Performance Committee:

a)       agree to recommend to the Governing Body that consultation material for the Annual Budget 2020/2021:

i)        is based on year three of the 10-year Budget 2018-2028 updated for subsequent decisions and new information

ii)       includes content to support the development of local board agreements

iii)      includes the summary of the draft Tūpuna Maunga o Tāmaki Makaurau Authority Operational Plan 2020/2021 as agreed between the Maunga Authority and the council.

b)      agree to recommend to the Governing Body that ward councillors be consulted with the “Have your say events’ dates prior to them being confirmed

 

 

The meeting adjourned at 11.05am and reconvened at 11.11am.

Cr C Fletcher and IMSB Chair D Taipari were not present.

 

Note:   changes were made to the original motion and incorporated under clause b) with the agreement of the meeting.

 

Resolution number FIN/2019/127

MOVED by Cr S Henderson, seconded by Cr D Simpson:  

That the Finance and Performance Committee:

a)       agree to recommend to the Governing Body that consultation material for the Annual Budget 2020/2021:

i)       is based on year three of the 10-year Budget 2018-2028 updated for subsequent decisions and new information

ii)      includes content to support the development of local board agreements

iii)     includes the summary of the draft Tūpuna Maunga o Tāmaki Makaurau Authority Operational Plan 2020/2021 as agreed between the Maunga Authority and the council.

b)         note the resolution from the Finance and Performance Committee on 22 May 2019 to request staff to ensure Have Your Say events and engagement format are approved by ward councillors as well as local boards before being finalised.

CARRIED

 

 

9

Rates and Fees Issues for Annual Budget 2020/2021 Consultation

 

Note:   amended wording of the original recommendation were made by staff in clauses a) i) and ii) and agreed to by the meeting.

 

Cr C Fletcher returned to the meeting at 11.14am.
IMSB Chair D Taipari returned to the meeting at 11.16am.

 

 

Resolution number FIN/2019/128

MOVED by Cr D Simpson, seconded by Cr S Henderson:  

That the Finance and Performance Committee:

a)      recommend to the Governing Body that it agree to consult as part of the draft Annual Budget 2020/2021 on

i)       increasing the waste management base service targeted rate to $141.03 (including GST) primarily to cover the increased cost of recycling as a result of changes in the international market price of recyclable material

ii)      increasing the standard refuse rate and the large refuse rate in the former Auckland City and Manukau City council areas to $144.16 and $67.75 (including GST) respectively subject to the decision of the Strategic Procurement Committee on the waste collections contracts procurement at its meeting on 10 December 2019 with these proposed new contracts providing significant savings over the long-term compared to 10-year Budget projections

iii)     replacing the three yearly $130 fee (including GST) for the first swimming pool fencing inspection with a targeted rate of $44 per year (including GST) and amending the remaining swimming pool fencing inspections fees as set out in Table 3 in this report

iv)     introducing a Clevedon water and wastewater connection targeted rate

v)      introducing business improvement district (BID) targeted rate for Central Park Henderson

vi)     introducing business improvement district (BID) targeted rate for One Warkworth, subject to local board support

vii)    expanding the BID targeted rate boundary for Glen Innes

viii)   expanding the BID targeted rate boundaries for Manukau Central and Manurewa, subject to support from the relevant local boards

ix)     changing regulatory fees and deposits as specified in Attachment C of the agenda report.

x)      introducing an entry fee of $20 (including GST) for international visitors to the Auckland Botanic Gardens

xi)     increasing the high impact event permit fee from $1,100 to $1,500 (including GST)

b)      note that at its meeting on 10 September 2019 the Environment and Community Committee recommended that the Governing Body include in the consultation document for the Annual Budget 2020/2021 the proposed changes to the:

i)       Retrofit Your Home scheme and the associated targeted rate

ii)      legacy Waitākere City Council septic tank pump-out service and the associated targeted rate.

CARRIED

 

Note:   Pursuant to Standing Order 1.8.6, the following councillors requested that their dissenting votes be recorded as follows:

·           Cr D Newman against clause a) x)

·           Cr W Walker against clause a) x)

 

 

10        Consideration of Extraordinary Items

 

There was no consideration of extraordinary items.   

 

 

 

 

11.40am                                             The Chairperson thanked Members for their attendance and attention to business and declared the meeting closed.

 

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

 

 

 

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

 

 

 

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