I hereby give notice that an ordinary meeting of the Finance and Performance Committee will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Thursday, 18 June 2020

10.00am

Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

 

Kōmiti ā Pūtea, ā Mahi Hoki /

Finance and Performance Committee

 

OPEN AGENDA

 

 

MEMBERSHIP

 

Chairperson

Cr Desley Simpson, JP

 

Deputy Chairperson

Cr Shane Henderson

 

Members

Cr Josephine Bartley

Mayor Hon Phil Goff, CNZM, JP

 

IMSB Member Renata Blair

Cr Richard Hills

 

Cr Dr Cathy Casey

Cr Tracy Mulholland

 

Deputy Mayor Cr Bill Cashmore

Cr Daniel Newman, JP

 

Cr Fa’anana Efeso Collins

Cr Greg Sayers

 

Cr Pippa Coom

Cr Sharon Stewart, QSM

 

Cr Linda Cooper, JP

IMSB Chair David Taipari

 

Cr Angela Dalton

Cr Wayne Walker

 

Cr Chris Darby

Cr John Watson

 

Cr Alf Filipaina

Cr Paul Young

 

Cr Christine Fletcher, QSO

 

 

(Quorum 11 members)

 

 

Sandra Gordon

Kaitohutohu Mana Whakahaere Matua / Senior Governance Advisor

 

12 June 2020

 

Contact Telephone: (09) 890 8150

Email: sandra.gordon@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 


Terms of Reference

 

Responsibilities

 

The purpose of the committee is to:

 

a)    advise and support the mayor on the development of the Long-term Plan (LTP) and Annual Plan (AP)

b)    monitor the overall financial management and performance of the council parent organisation and Auckland Council group

c)    make financial decisions required outside of the annual budgeting processes.

 

The committee will establish an annual work programme outlining key focus areas in line with its key responsibilities, which include:

 

·         advising and supporting the mayor on the development of the LTP and AP for consideration by the Governing Body including:

o   local board agreements

o   financial policy related to the LTP and AP

o   setting of rates

o   preparation of the consultation documentation and supporting information, and the consultation process, for the LTP and AP

·         monitoring the operational and capital expenditure of the council parent organisation and Auckland Council Group, and inquiring into any material discrepancies from planned expenditure

·         approving the financial policy of the council parent organisation

·         establishing and managing a structured approach to the approval of non-budgeted expenditure (including grants, loans or guarantees) that reinforces value for money and an expectation of tight expenditure control

·         approve the council insurance strategy and annual insurance placement for Council

·         performance measures and monitoring

·         write-offs

·         acquisition of property in accordance with the LTP

·         disposals in accordance with the LTP

·         recommending the Annual Report to the Governing Body

·         funding for achieving improved outcomes for Māori.

 

Powers

 

(i)         All powers necessary to perform the committee’s responsibilities, including:

(a)        approval of a submission to an external body

(b)        establishment of working parties or steering groups.

(ii)        The committee has the powers to perform the responsibilities of another committee, where it is necessary to make a decision prior to the next meeting of that other committee.

(iii)       If a decision is a budgetary or financial decision that relates primarily to the Finance and Performance Committee responsibilities, the Finance and Performance Committee has the powers to make associated decisions on matters that would otherwise be decided by other committees. For the avoidance of doubt, this means that matters do not need to be taken to multiple committees for decisions.

(iii)       The committee does not have:

(a)        the power to establish subcommittees

(b)        powers that the Governing Body cannot delegate or has retained to itself (section 2)

 

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.

 


Finance and Performance Committee

18 June 2020

 

ITEM   TABLE OF CONTENTS                                                                                         PAGE

1          Apologies                                                                                                                        7

2          Declaration of Interest                                                                                                   7

3          Confirmation of Minutes                                                                                               7

4          Petitions                                                                                                                          7  

5          Public Input                                                                                                                    7

6          Local Board Input                                                                                                          7

7          Extraordinary Business                                                                                                8

8          Auckland War Memorial Museum 2020/2021 levy                                                      9

9          New Zealand Local Government Funding Agency                                                  53

10        Recommendation from Parks, Arts, Community and Events Committee, 11 June 2020 - Disposal of land in Sidmouth Reserve to complete land exchange          69

11        Summary of Finance and Performance Committee information memoranda and briefings, including the Forward Work Programme - 18 June 2020                      83  

12        Consideration of Extraordinary Items 

PUBLIC EXCLUDED

13        Procedural Motion to Exclude the Public                                                                 95

C1       Council Group Insurance Renewal 2020                                                                   95  

 


1          Apologies

 

At the close of the agenda no apologies had been received.

 

 

2          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.

 

 

3          Confirmation of Minutes

 

That the Finance and Performance Committee:

a)         confirm the ordinary minutes of its meeting, held on Thursday, 19 March 2020, including the confidential section, as a true and correct record.

 

 

4          Petitions

 

At the close of the agenda no requests to present petitions had been received.

 

 

5          Public Input

 

Standing Order 7.7 provides for Public Input.  Applications to speak must be made to the Governance Advisor, in writing, no later than one (1) clear working day prior to the meeting and must include the subject matter.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.  A maximum of thirty (30) minutes is allocated to the period for public input with five (5) minutes speaking time for each speaker.

 

At the close of the agenda no requests for public input had been received.

 

 

6          Local Board Input

 

Standing Order 6.2 provides for Local Board Input.  The Chairperson (or nominee of that Chairperson) is entitled to speak for up to five (5) minutes during this time.  The Chairperson of the Local Board (or nominee of that Chairperson) shall wherever practical, give one (1) day’s notice of their wish to speak.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.

 

This right is in addition to the right under Standing Order 6.1 to speak to matters on the agenda.

 

At the close of the agenda no requests for local board input had been received.

 


 

 

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.”


Finance and Performance Committee

18 June 2020

 

Auckland War Memorial Museum 2020/2021 levy

File No.: CP2020/03823

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To consider the 2020/2021 levy for the Auckland War Memorial Museum (the Museum).

Whakarāpopototanga matua

Executive summary

2.       The Auckland War Memorial Museum Act 1996 (the Act) requires Auckland Council to fund the Museum on an annual basis by way of the levy process set out in the Act.  The Museum has supplied Regional Facilities Auckland (Council’s agent in the levy process) (RFA) with a draft Revised Annual Plan (Attachment A) and an accompanying letter explaining its content (Attachment B).

3.       The Museum’s draft Annual Plan has been through multiple versions prior to being brought to Council for approval.  The context within which the Plan was originally drafted in November 2019 has now, of course, dramatically changed with the evolving pandemic situation. RFA, in consultation with Auckland Council, sent the Museum a letter asking it to revise its Plan and levy request accordingly (Attachment C), which resulted in the revised Plan which is attached to this report. 

4.       The key features of its Plan, as compared to the current year’s Plan are:

·    A levy request of $32.29 million for 2020/2021, a nil increase on 2019/2020

·    Budgeting for council levy increases of 2.5 per cent for each of the following two years

·    Predicted earnt income of $920,000 for 2020/2021 (a reduction of $8.36m from 2019/2020), but recovering to $4.53m and $6.78m over the following two financial years. 

5.       A nil increase in the levy for next year is welcome, and it is recommended that this be approved.

6.       This will allow a range of projects and programmes to continue in the next financial year, including:

·    Collecting objects relating to COVID-19, with a focus on social history

·    The Noises/Otata project in the Hauraki Gulf with Ngāi-Tai-Ki-Tāmaki and the Neureuter family (landowners), Auckland University, Auckland Council and Auckland Zoo

·    Providing museum experiences to audiences online through the Auckland Museum at home portal

·    The Pacific Heritage project and Pacific Virtual Museum.

7.       There are, however, some issues of concern.

·    The Museum continues to budget for levy increases, despite anticipating a recovery in earnt income. This suggests a planned resumption of the model where both the levy and earnt income go up each year.

·    The Plan remains difficult to understand for the lay reader, particularly the operational expenditure categories which are chosen to be shown (staffing is not shown for example)

·    The capital programme is not explained clearly, which is exacerbated by the fact an asset management plan is yet to be provided to RFA, so a request for this to be finalised is recommended. 

·    The Museum will be 97 per cent Council funded in the next financial year, so a request for additional reporting to Council is recommended.

8.       We note that the process for agreeing the Plan has again been difficult this year.  The legislation does not provide for a constructive setting in which to produce a plan, with the Museum and council having different perspectives on what information should be presented.

9.       Finally, RFA should be acknowledged for the constructive way it engages with the Museum both in the annual plan process, and for the advice it provides to Auckland Council as part of this process. 

 

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a)      acknowledge Auckland Museum’s revised draft Annual Plan, which has been adjusted from the original draft Plan approved by the Board, to take account of COVID-19-related impacts.

b)      note that the revised Plan includes a nil levy increase for 2020/2021, but that the Museum is planning to request ongoing levy increases from Council in the following two years, despite its income from other sources recovering.

c)      agree that the Chair, Finance and Performance Committee, writes to the Auckland Museum Board:

i)        noting Council’s appreciation for making a nil levy request given the COVID-19 situation

ii)       requesting that levy increases are limited to a maximum nil increase for the forthcoming two years, given that the Museum’s income is projected to increase from other sources

iii)      requesting that the museum provide quarterly updates to RFA and Auckland Council staff on progress against the plan, given that the Museum will be 97 per cent Council-funded in 2020/2021

iv)      requiring a satisfactory asset management plan be provided to RFA and Council, prior to the commencement of the next annual plan process in September 2020.

d)      approve Auckland Museum’s proposed levy for 2020/2021 of $32.292 million.

e)      thank Regional Facilities Auckland for its continuing role in providing Auckland Council with advice on the activities and planning of Auckland Museum. 

 

Horopaki

Context

Legislative framework

10.     Council is obliged to fund the Museum under the levy provisions of the Auckland War Memorial Museum Act 1996.  This Act was designed to ensure the seven councils in the Auckland region at the time all contributed to the Museum.

11.     The Museum is required to produce a draft Annual Plan, including a levy requirement on Council. 

12.     The purpose of the levy is to fund the Museum’s activities, including maintenance, operations and development.  The key test for the levy is whether it ensures the Museum’s Board can meet its “minimum obligations” under the Act, with the implication that Council is not obliged to fund the Museum beyond this minimum level. 

13.     Auckland Council may comment on the Museum’s draft Annual Plan, which it does through RFA.  The Museum has no requirement to make changes in response to Auckland Council’s submission, or to treat Council as any more important than any other submitter.  This is despite the fact that the vast majority of the Museum’s funding comes from Auckland ratepayers (75-80 per cent in a normal year; 97 per cent in the upcoming financial year).

14.     Throughout the year, there is no obligation on the Museum to report to or account for its activities to Council and Aucklanders, beyond providing the council with a copy of its annual report (which is in any case publicly available).  This is unlike Council’s CCOs which are subject to the various requirements of the Local Government Act 2002. 

Tātaritanga me ngā tohutohu

Analysis and advice

Key elements of the Revised draft Annual Plan 2020/2021

15.     Key features of the Revised draft Annual Plan include:

·    A levy request of $32.29m, a nil increase on the previous financial year, with increases of $810,000 and $830,000 forecast for the following two years

·    Onsite visitation reducing from 800,000 people to 401,000 in 2020/2021 as a result of COVID-19

·    Self-generated revenue predicted to reduce from $9.28m (budget for 2019/2020) to $0.92m in 2020/2021

·    A reduction in operating expenditure, largely in the Museum Experience and War Memorial business area

·    A focus on completing building works which had been anticipated to be complete prior to June 2020 prior to the pandemic

·    Rescheduling planned exhibitions.

16.     Despite the bleak financial picture, the Museum and its dedicated staff will still be undertaking a wide range of valuable projects and programmes, supported by funding from the Auckland community.  The box which follows outlines some of these activities, though many more are outlined in the strategic sections of the Revised Plan.

Selected Auckland Museum projects for 2020/2021

 

Collecting COVID-19: 100 Lockdown Objects https://www.aucklandmuseum.com/your-museum/at-home/collecting-covid-19

 

Auckland Museum Human History and Documentary Heritage curatorial teams have developed a strategy for collecting Aucklanders’ experiences of COVID-19. The strategy has a strong focus on building future understanding about the crisis and its effect on Auckland and Aucklanders. The Museum has had offers of material culture, documentary heritage, photography and ephemera and is engaging with individuals, communities and businesses across Auckland to receive these donated objects.

The Museum has also been working with other collecting institutions in Auckland and Te Papa to ensure that there is support across the sector to collect the full narrative of COVID-19.  Auckland Museum was the first museum in New Zealand to put out a call for collecting, and the initiative garnered a huge amount of interest from around the country, including from major national media (RNZ, Radio Waatea, Newstalk ZB, among others). See reference to this work in Introduction to the Revised Plan. 

 

 

 

 

Noises/Otata project - http://www.thenoises.nz

A cross-disciplinary and cross-institution project, the Noises project is a home for archaeology, botany, and environmental sciences experts to work with Ngāi-Tai-Ki-Tāmaki and the Neureuter family (landowners) to protect the unique natural environment that is the Noises islands in the Hauraki Gulf. The Museum is leading the archaeology, botany, and land-vertebrates (Spotted Shag) surveys currently underway on the islands. Other partners include the University of Auckland, Auckland Council, and Auckland Zoo.

 

Museum studies with the University of Auckland https://artsfaculty.auckland.ac.nz/courses/?Subject=MUSEUMS&Number=702&Year=2020

In 2019, the Museum partnered with the University of Auckland to develop and teach a post-graduate paper in museum studies. The only course of its kind in Australasia, the ‘Inside the Museum’ paper is taught over a whole semester by Auckland Museum staff, offering Masters in Museums and Cultural Heritage students the opportunity to learn the practicalities of museum practice through experiential learning on-site at the Parnell and Manu Taiko buildings (see page 28 of Revised Plan).

 

Auckland Museum at Home https://www.aucklandmuseum.com/your-museum/at-home

From the first week of lockdown, Auckland Museum pivoted its effort to providing museum experiences to audiences online. The Museum at Home portal is full of collection-rich content, an opportunity to hear about the research of the museum’s curators through blogs, topic pages, and the “Ask a Curator” initiative. Interactive 3D scans of galleries are available, including galleries no longer available in the Museum, and recent exhibitions. The usual Anzac Day commemorative programme was run through this portal, with links to commemorative events, and the Cenotaph Online portal.

 

Tāmaki Herenga Waka galleries (Page 11, 18, 23 of Revised Plan): these new ‘stories of Auckland’ galleries are expected to open later in the financial year and will be a place for all Aucklanders to see themselves, and for visitors to discover what makes Tamaki Makaurau unique. 

 

Analysis

17.     In broad terms, it is clear that the Revised draft Annual Plan meets the basic requirements of the Act in terms of describing the Museum’s activities.

18.     However, from the point of view of clarity about what is driving expenditure, the Plan still leaves much unclear for the lay reader. For example, the Museum’s letter to RFA (Attachment B) refers to staffing measures including FTE reductions, voluntary leave, and leave without pay.  However, this is not expressed anywhere in the Plan.  This is unlike other plans such as MOTAT’s, where the ‘business services areas’ clearly shows staffing and other corporate costs separately from other operational budgets. It is not obvious whether the business services area table (page 45), which does not map to the internal directorate structure of the Museum, gives a true picture of where money is being spent.

19.     Similarly, the capital expenditure budget tables and graph on page 48 indicate a confusing picture for the reader. There appears to be a planned spend of approximately $30m on capital ($10.17m in the 2020/2021 year, plus $20m deferred projects from the previous year as a result of COVID-19), and yet the Asset Replacement Reserve reduces by about $15m and claimed depreciation (see page 45 of the revised Plan) is $8.79m for a total of $24m. 

20.     This issue would be resolved if an Asset Management Plan was provided to RFA, as has been requested.  Without this, it makes it difficult to understand the Museum’s capital needs, and how much is spent on ongoing maintenance as compared to new capital projects.  The Museum’s senior staff have verbally committed to providing an Asset Management Plan to Regional Facilities Auckland by September 2020, so we are recommending this be included in a letter to the Museum. 

21.     We also note that the Museum is budgeting for levy increases in the following two years. We recommend that Council requests the Museum to revise these requests and budget for no increases for the following two financial years. This reflects that the Museum expects its commercial earnings to recover, and that the Council’s levy is only intended to cover the “minimum obligations” that the Board has under the Museum’s legislation. It may mean the Museum needs to rethink the speed of its growth model, rather than planning to simply resume levy increases from Council.  This is especially so, given that the financial challenge which the COVID-19 situation presents for Council will not be over in one financial year. 

Advice and options

22.     There are two options available to the council, which are outlined below. 

Option one: approve the levy

23.     The draft Annual Plan is broadly within the purposes set out in the Act. Approving the levy as requested would allow Auckland Museum to complete its programme as planned, along with the projects mentioned earlier in this report. This option is therefore recommended.

24.     As noted earlier, for 2020/21 the Museum will be 97 per cent council-funded.  While it has no formal legislative obligations to report to council throughout the year, given the importance of council’s contribution, we recommend that the Museum be requested to report at a staff level on its progress with recovery.  This has been verbally agreed with Museum staff at a recent meeting.  This reporting will focus on financial performance (including non-council revenue), capital programme, non-financial performance measures, and progress on the programme which has been outlined in the Revised draft Annual Plan. 

Option two: reject the levy

25.     The legislation allows Council the option of rejecting the levy. In this case, if a negotiation with the Museum could not resolve the amount, an arbitrator would be appointed by both parties.

26.     In the case of an arbitrator setting the levy in a dispute situation, that person should take into account “the minimum obligations placed on the Board by this Act” (to operate, maintain and develop the Museum in accordance with the Museum’s legislative purposes).  This suggests that there is a point at which the Museum’s levy request would be higher than the costs of the “minimum obligations”.  It is not clear what the circumstances are in which these minimum obligations might be deemed to have been exceeded. This has never been formally tested by Auckland Council. 

27.     The Museum notes in its accompanying letter (Attachment B, third page of letter) that a levy of $32.29m “reflects the minimum funding level to enable the Museum to deliver its statutory functions”. It would take a far more in-depth examination of the Museum’s finances than the Annual Plan process allows, to determine if there was a case for arbitration. 

28.     This option is not recommended for 2020/2021. 

This year’s process and the positive role of RFA

29.     Finally, it is worth noting that this year’s levy setting process for the Museum has been unusually difficult. The draft Annual Plan 2020/2021 has been through multiple versions since it was first issued in September 2019. Council’s submissions on the Annual Plan are routinely resisted, particularly when the levy amount is queried. The tone adopted with RFA and Council is captured in the reminder this year that moves to question the funding amount would be “against the Museum’s legislated ability to make a levy request” (letter to RFA, 2 March 2020).

30.     It is clear that Council and the Museum come to the Annual Plan and levy setting process with quite different perspectives and expectations. Longer-term, a new approach needs to be developed which acknowledges Council’s role as funder, and not just the Museum’s independence. 

31.     It is to RFA’s credit that it continues to operate in this environment with calmness and in a constructive way. Advice provided to council is detailed and timely, and reflects comprehensive efforts to question the Museum on its planning. It also plays a role outside the annual plan process, consistent with RFA’s purposes under its Trust Deed to promote arts, culture and heritage in Auckland more generally.  For example, it recently helped promote and collate the sector response to the government’s call for ‘shovel-ready’ projects for the pandemic recovery. It is recommended that RFA’s role in difficult circumstances is acknowledged. 

Tauākī whakaaweawe āhuarangi

Climate impact statement

32.     There are no direct impacts or emissions affecting the climate over the lifetime of the decision to approve the Museum’s levy for 2020/2021. 

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

33.     Regional Facilities Auckland acts as the council’s agent in the process of developing and commenting on the Museum’s draft Annual Plan. Its role has been noted above, and its advice is incorporated into this report. 

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

34.     Decision making and oversight on regional activities is the responsibility of the Governing Body. 

Tauākī whakaaweawe Māori

Māori impact statement

35.     The Revised draft Annual Plan contains a range of planned activities which enhance care and conservation of taonga held at the Museum, and to work as partners with Māori communities. 

36.     We note that since 1996, both Auckland’s local governance model and the Māori context has changed significantly. The Auckland Plan emphasises council’s responsibility to 19 mana whenua iwi in the Auckland region, as well as mataawaka.  The Auckland War Memorial Museum Act 1996 established a governance model for the Museum which does not reflect this wider responsibility to Auckland, because it was drafted at a time when perceptions of councils’ responsibilities to mana whenua were different (and it was not revisited at amalgamation). This is one of the key reasons why this legislation needs to be revisited by government in the near future. 

Ngā ritenga ā-pūtea

Financial implications

37.     The proposed levy is within the levy cap provided for by legislation and is budgeted for in the 10-year Budget 2018-2028. 

38.     If the Museum continues with its intention to request levy increases in subsequent years, this will likely exceed the budget allowance for levy/grant funding in the current Long-term Plan. If these levies are approved in future, additional savings will need to be found from other areas of council’s business. 


 

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

39.     For the Museum, the primary risk is the evolving COVID-19 situation, which will affect non-levy income. The Museum is assuming earnt income of around $920,000, across 401,000 onsite visitors – or around $2 per visitor across parking fees, café, shop and paid Museum experiences.  This should be assessed carefully by the Museum over time, as the situation develops, including whether the financial impacts to earnt income may not be as severe as first thought.

40.     For Council there remains the ongoing financial risk from the legislative levy system under which Auckland Museum is funded.  The lack of any formal accountability to the council, and the lack of genuine two-way engagement during development of the draft annual plan each year, mean the current legislation is a poor mechanism for building a modern relationship with the Museum.

41.     Council and Regional Facilities Auckland staff work closely with the Museum on an ongoing basis to mitigate this risk, but ultimately the council has very little ability to mitigate the risk because of the legislative framework.

Ngā koringa ā-muri

Next steps

42.     If this committee approves the proposed levy, payment will be made on or before 1 July 2020. 

43.     If this committee approves, the Chair of this committee will write to the Auckland Museum Board in accordance with the committee’s additional resolutions. 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Auckland Museum Revised Annual Plan

17

b

Auckland Museum letter to RFA, 1 May 2020

45

c

RFA letter to Auckland Museum, 9 April 2020

49

      

Ngā kaihaina

Signatories

Author

Edward Siddle - Principal Advisor

Authorisers

Alastair Cameron - Manager - CCO Governance & External Partnerships

Phil Wilson - Governance Director

Kevin Ramsay - Acting Group Chief Financial Officer

 


Finance and Performance Committee

18 June 2020

 


 

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Finance and Performance Committee

18 June 2020

 


 


 


 


Finance and Performance Committee

18 June 2020

 


 


 


Finance and Performance Committee

18 June 2020

 

New Zealand Local Government Funding Agency

File No.: CP2020/07495

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To note the amendments to the relevant New Zealand Local Government Funding Agency (LGFA) legal documents and delegate signing of the legal documents to the chair and deputy chair of the Finance and Performance Committee.

2.       To note proposed changes to LGFA’s Foundation Policies.

3.       To restate existing delegations to the chair of the Finance and Performance Committee and the group chief financial officer to determine how Auckland Council exercises its rights in relation to LGFA.

Whakarāpopototanga matua

Executive summary

4.       LGFA are proposing to amend some of their legal documents to:

a)      implement decisions made at the annual general meeting on 21 November 2018 to enable council-controlled organisations to borrow directly from LGFA and for local authorities to apply for LGFA covenants to be tested at a group level rather than parent level (Auckland Council voted on in favour of those amendments at the 21 November 2018 AGM)

b)      increase the amount of borrower notes issued to a local authority when it borrows from LGFA (this decision was made by the LGFA board)

c)      make other minor technical improvements to the borrowing programme, including to facilitate the provision of committed standby borrowing facilities.

(together the “Amendments”)

5.       In addition, to manage the financial stress on local authorities as a result of Covid-19 and allow additional flexibility to manage infrastructure investment in the future, LGFA is proposing a change to the Net Debt/Total Revenue financial covenant in the Foundation Policies from the current 250% to 280% (over a period of 6 years), which applies to local authorities with a minimum long-term credit rating of ‘A’ equivalent.

6.       This proposed change to the Foundation Policies’ financial covenant needs to be approved by an ordinary resolution of the company’s shareholders. A special general meeting will be held on 30 June 2020 to vote on this change.

7.       This report requests that the Finance and Performance Committee:

·        approve the proposed changes to LGFA legal documents and delegate the signing of the legal documents to the chair and deputy chair of the Finance and Performance Committee

·        note the proposed change to the Net Debt/Total Revenue financial covenant in LGFA’s Foundation Policies

·        restate existing delegations to the chair of the Finance and Performance Committee and the group chief financial officer of the authority to determine how the council exercises its rights in relation to LGFA (including the council’s rights as a shareholder in LGFA).

 

 

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a)      note the proposed amendments to the LGFA legal documents and Foundation Policies

b)      approve the transactions contemplated by the Amendments and the Documents, including but not limited to:

i)        an amendment and restatement deed to be dated on the date notified by LGFA to the council, between (amongst others) the council and LGFA in relation to the Multi-issuer Deed

ii)       an amendment and restatement deed to be dated on the date notified by LGFA to the council, between (amongst others) the council and LGFA in relation to the Notes Subscription Agreement

iii)      an amendment and restatement deed to be dated on the date notified by LGFA to the council, between (amongst others) the council and TEL Security Trustee (LGFA) Limited in relation to the guarantee

(together the “documents”)

c)      authorise the chair and deputy chair of the Finance and Performance Committee to execute such documents on behalf of Auckland Council, as are necessary or desirable, in connection with the Amendments as defined in recommendation B

d)      note the proposed changes to the net debt/total revenue financial covenant in LGFA’s Foundation Policies

e)      delegate to the chair of the Finance and Performance Committee and the group chief financial officer:

i)        the authority to determine how the council exercises its rights under the arrangements entered into in relation to the LGFA scheme, including, without limitation, the council’s rights as a shareholder in LGFA

ii)       the authority to do all things necessary or desirable to implement a determination made under the preceding paragraph, including but not limited to the appointment of a proxy to vote on behalf of the council at any meeting of LGFA, the approval of any document and/or transaction necessary or desirable to implement a decision made at any meeting of LGFA shareholders

iii)      the authority to authorise any person or persons to execute all documents necessary or desirable to implement a decision made at any meeting of the LGFA shareholders.

 

Horopaki

Context

8.       LGFA plan to amend their legal documents following decisions made at previous annual general meetings enabling council-controlled organisations to borrow directly from LGFA and enabling local authorities to apply for LGFA covenants to be tested at a group level rather than parent level.

9.       In addition, to manage the financial stress on local authorities as a result of Covid-19 and allow additional flexibility to manage infrastructure investment in the future, LGFA is proposing a change to the Net Debt/Total Revenue financial covenant in the Foundation Policies that authorities must maintain.

10.     This proposed change to the Foundation Policies’ financial covenant needs to be approved by an ordinary resolution of the company’s shareholders. A special general meeting will be held on 30 June 2020 to vote on this change.

Tātaritanga me ngā tohutohu

Analysis and advice

11.     LGFA intends to amend legal documents to:

a)      enable approved council-controlled organisations to borrow directly through the LGFA’s borrowing programme

b)      allow a local authority to apply to LGFA to be tested at the group level, rather than parent level, for compliance with LGFA covenants

c)      increase the amount of borrower notes to be issued to a local authority when it is borrowing

d)      make other minor technical improvements to the borrowing programme (including to facilitate the provision of committed standby borrowing facilities)

e)      change the Foundation Policies to respond to Covid-19 and allow additional flexibility to manage infrastructure investment in the future.

12.     To implement these changes, legal documentation will need to be amended. This includes the following documents:

·        multi-issuer deed

·        guarantee and indemnity

·        notes subscription agreement.

13.     The documents have been reviewed and approved by LGFA (with the assistance of LGFA’s legal counsel, Russell McVeagh) and by the LGFA Shareholders Council (with the assistance of Simpson Grierson).

Amendment 4 a) – CCO borrowing/compliance tested at a group vs parent level

14.     Amendment 4 a) was approved by shareholders at the annual general meeting held on 21 November 2018. Auckland Council voted in favour of these amendments. See the memorandum explaining the amendments set out as Appendix A.

Amendment 4 b) – Increase in the of borrower notes from 1.6% to 2.5%

15.     The LGFA board considers the capital structure of the company every second year. At the review in March this year, the LGFA board decided there was a need to increase its capital (money LGFA has stored to provide a buffer against the risk it takes on by making loans to local authorities).

16.     The decision to increase capital was made by the LGFA board in response to:

·        a fast-growing balance sheet as LGFA takes on more council members and increases both the LGFA loan book and liquid assets portfolio

·        a global trend to increase capital – LGFA is undercapitalised on a global comparative basis with a capital ratio (capital as a percentage of the loan book) of 2.2% compared to Nordic peers with capital ratios between 3% and 4%

·        domestic banks are increasing their capital at the direction of the RBNZ

·        LGFA wanting to retain the confidence of credit rating agencies and investors and having more capital provides greater comfort to guarantor councils.

17.     In these difficult times it is important for LGFA to continue to access debt capital markets on behalf of the sector in order to provide long-dated funding at the lowest possible cost. Increasing the capital base helps LGFA to continue to do this.

18.     Following discussions with the LGFA Shareholders Council, the LGFA board resolved that the best way to increase capital was via an increase to the borrower notes percentage from 1.6% to 2.5% to maintain higher capital balances.

19.     A borrower note is a financial instrument that a local authority is required to buy from LGFA every time the local authority borrows from LGFA. Currently 1.6% of each borrowing transaction by a local authority is withheld by LGFA in the form of borrower notes. Interest is paid by LGFA to local authorities for this investment. The capital sum of the borrower notes is only required to be repaid by LGFA when a local authority repays the relevant borrowing to LGFA.

20.     The implication of this to councils is that, every time a council borrows via LGFA, 2.5% of borrowings will be held back as opposed to 1.6%. This will not be a significant impact to Auckland Council.

Amendment 4 c) – Minor technical amendments

21.     LGFA is proposing certain other minor technical improvements to the borrowing programme, including to facilitate the provision of committed standby borrowing facilities.

Amendment 5 – Proposed change to LGFA Foundation Policies

22.     LGFA is proposing to raise its Foundation Policies’ financial covenant limit on net debt to total revenue from 250% to 300%. This new covenant limit will be effective for the period ending 30 June 2021 and will then gradually reduce to 280% by the year ending 30 June 2026.

23.     The table below outlines the proposed net debt to total revenue covenant by year:

Financial year ending

Net debt to total revenue

30 June 2020

<250%

30 June 2021

<300%

30 June 2022

<300%

30 June 2023

<295%

30 June 2024

<290%

30 June 2025

<285%

30 June 2026 and each financial year thereafter

<280%

24.     Note that this debt to revenue ratio calculation is specific to the LGFA covenant limit. There is a different debt to revenue ratio calculation used to measure the council’s borrowing, as set out in the Treasury Management Policy.

25.     The objective of this proposed change is to provide local authorities with short to medium-term additional debt capacity to manage financial stress arising from COVID-19.

26.     The increased Foundation Policies’ covenants apply only to local authorities with an external credit rating of ‘A’ or higher.

27.     A lower limit of 175% applies to unrated local authorities and no changes are proposed for these local authorities.

28.     LGFA has advised that the proposed changes have been discussed with both S&P Global and Fitch Ratings (the rating agencies that rate LGFA) and they are comfortable with this proposed relaxation of the net debt to total revenue covenant.

29.     These changes have also been discussed with the LGFA Shareholders Council and they support the proposal.

30.     Auckland Council’s involvement in LGFA allows access to long-term funding and lower debt servicing costs. LGFA was established primarily to support the local authority sector and in addition it improves the depth in the NZ capital markets.

31.     The proposed increase to net debt to total revenue covenant provides financial flexibility to manage the council’s large infrastructure investment programme.

32.     Amendments to Foundation Policies requires shareholders’ approval by way of an ordinary resolution. This requires approval by a simple majority of more than 50% of votes of the shareholders entitled to vote and voting at the special general meeting.

33.     Auckland Council’s shareholding in LGFA is 8.3%.

Restatement of delegations

34.     When LGFA was established, delegations were set up to provide for how council’s obligations as a shareholder would be exercised. At its June 2011 meeting, Auckland Council’s Governing Body resolved as follows:

“Delegate to the chief financial officer and the chairperson of the Strategy and Finance Committee the authority to determine how the council exercises its rights under the arrangement entered into in connection with the LGFA scheme, including, without limitation, the council’s rights as a shareholder in the LGFA.”

35.     Therefore, the chair of the Strategy and Finance Committee (now Finance and Performance Committee) and the group chief financial officer have delegated authority to determine how the council exercises its rights under the arrangement entered into in connection with the LGFA scheme, including the exercise of council’s voting rights at shareholder meetings.

36.     Given that these delegations are dated, it is recommended that the Finance and Performance Committee restate these delegations to the committee chair and the group chief financial officer, and extend those delegations to give the committee chair and the group chief financial officer the ability to implement changes to LGFA documentation required to give effect to decisions taken at shareholder meetings.

Tauākī whakaaweawe āhuarangi

Climate impact statement

37.     While projects funded via funding from LGFA will have an impact on the environment, the decisions made here in relation to the legal documentation will not.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

38.     Auckland Council Treasury is responsible for securing funding for the group (apart from Ports of Auckland Limited).

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

39.     Borrowing is undertaken at a Governing Body level and has no direct impact on local boards.

Tauākī whakaaweawe Māori

Māori impact statement

40.     While projects funded via LGFA will have interest to Māori, this report deals with the administrative processes of borrowing from LGFA and so has no direct impact on Māori.

Ngā ritenga ā-pūtea

Financial implications

41.     Financial implications are discussed in the body of this report.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

42.     The report ensures that all legal documents pertaining to borrowing from LGFA have been executed with full legal compliance.

Ngā koringa ā-muri

Next steps

43.     If the recommendations are agreed council staff will:

·        arrange for the amended legal documents relating to the LGFA’s borrowing programme be signed by the chair and deputy Chair of the Finance and Performance Committee.

·        prepare a memo to the chair of the Finance and Performance Committee and the group chief financial officer recommending that, under delegation, they vote for the proposed change to the Foundation Policies at the Special General Meeting to be held on 30 June 2020.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Memo to the chair of the Finance and Performance Committee and group chief financial officer, relating to the LGFA AGM dated 16 October 2018

59

     

Ngā kaihaina

Signatories

Author

Andrew John - Treasury Funding Manager

Authorisers

John Bishop - Group Treasurer

Kevin Ramsay - Acting Group Chief Financial Officer

 


Finance and Performance Committee

18 June 2020

 

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Finance and Performance Committee

18 June 2020

 

Recommendation from Parks, Arts, Community and Events Committee, 11 June 2020 - Disposal of land in Sidmouth Reserve to complete land exchange

File No.: CP2020/07341

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To receive the recommendations from the Parks, Arts, Community and Events Committee held on 11 June 2020.

Whakarāpopototanga matua

Executive summary

2.       At its meeting on 11 June 2020, the Parks, Arts, Community and Environment Committee considered the attached report and resolved as follows:

Resolution number PAC/2020/18

MOVED by Cr J Watson, seconded by Cr W Walker: 

That the Parks, Arts, Community and Events Committee:

a)      approve the exchange of 369m² (more or less) of land in Sidmouth Reserve within Lot 1 DP 91987 held by Auckland Council with 369m² (more or less) of land at 10 Sidmouth Street (Lot 2 DP 91987) held by Watercare Services Limited as illustrated in Figure 2 of the agenda report

b)      recommend that the Finance and Performance Committee approve the disposal of 369m² of land in Sidmouth Reserve within Lot 1 DP 91987 to Watercare Services to complete the land exchange.

3.       The original report to the 11 June 2020 meeting is attached (Attachment A) which provides detailed information.

 

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a)      note resolution PAC/2020/18 clause b) from the Parks, Arts, Community and Events Committee meeting held on 11 June 2020, recommending that the Finance and Performance Committee approve the disposal of land in Sidmouth Reserve to Watercare Services to complete a land exchange.

b)        approve the disposal of 369m² of land in Sidmouth Reserve within Lot 1 DP 91987 (as illustrated in Figure 2 of the Parks, Arts, Community and Events Committee agenda report of 11 June 2020) to Watercare Services to complete the land exchange.

 


 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

11 Jun 2020, Parks, Arts, Community and Events Committee , Disposal of land in Sidmouth Reserve to complete land exchange

71

     

Ngā kaihaina

Signatories

Author

Sandra Gordon - Kaitohutohu Mana Whakahaere Matua / Senior Governance Advisor

Authoriser

Kevin Ramsay - Acting Group Chief Financial Officer

 


Finance and Performance Committee

18 June 2020

 

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Finance and Performance Committee

18 June 2020

 

Summary of Finance and Performance Committee information memoranda and briefings, including the Forward Work Programme - 18 June 2020

File No.: CP2020/06741

 

  

Te take mō te pūrongo

Purpose of the report

1.       To note the progress on the forward work programme appended in Attachment A.

2.       To receive a summary and provide a public record of memoranda or briefing papers that may have been held or been distributed to Finance and Performance Committee members.

Whakarāpopototanga matua

Executive summary

3.       This is a regular information-only report which aims to provide greater visibility of information circulated to committee members via memoranda/briefings or other means, where no decisions are required.

4.       The following information has been circulated to members:

Date

Subject

3/6/2020

Memorandum from Head of Corporate Property regarding 50 Centreway Road, Orewa – Attachment B

12/6/2020

Memorandum from General Manager Financial Strategy and Planning, General Manager Financial and Business Performance, Group Treasurer and Group Financial Controller regarding the Summary of Auckland Council and Auckland Council Group quarter three performance to 31 March 2020 – Attachment C

5.       The following workshops/briefings have taken place:

Date

Workshop/Briefing

6/05/2020

Finance and Performance Committee confidential workshop - Annual Budget 2020/2021 (no attachment)

13/05/2019

Finance and Performance Committee confidential joint hui with the Tūpuna Maunga Authority - feedback on the Tūpuna Maunga Authority Draft Operational Plan 2020/2021 (no attachment)

13/05/2020

Finance and Performance Committee workshop - Annual Budget 2020/2021 Emergency Budget (Attachment D)

20/05/2020

Finance and Performance Committee confidential workshop - Annual Budget 2020/2021 Emergency Budget (no attachment)

20/05/2020

Finance and Performance Committee confidential workshop – Annual Budget 2020/2021 Emergency Budget (including feedback from the first Annual Budget 2020/2021 consultation process) (no attachment)

27/05/2020

Finance and Performance Committee confidential workshop – Annual Budget 2020/2021 Emergency Budget - draft Consultation Document and Supporting Information (no attachment)

10/6/2020

Finance and Performance Committee Have Your Say Event – Annual Budget 2020/2021 Emergency Budget – Regional Stakeholder Session (attachment E)

These documents can be found on the Auckland Council website, at the following link: http://infocouncil.aucklandcouncil.govt.nz/

at the top left of the page, select meeting/Te hui “Finance and Performance Committee” from the drop-down tab and click “View”;

under ‘Attachments’, select either the HTML or PDF version of the document entitled ‘Extra Attachments’.

6.       Note that, unlike an agenda report, staff will not be present to answer questions about the items referred to in this summary.  Committee members should direct any questions to the authors.

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a)      note the progress on the forward work programme.

b)      receive the Summary of Finance and Performance Committee information memorandum and briefings as at 18 June 2020.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Finance and Performance Committee - Forward Work Programme

87

b

Memorandum from Head of Corporate Property regarding 50 Centreway Road, Orewa (Under Separate Cover)

 

c

Memorandum from General Manager Financial Strategy and Planning, General Manager Financial and Business Performance, Group Treasurer and Group Financial Controller regarding the Summary of Auckland Council and Auckland Council Group quarter three performance to 31 March 2020 (Under Separate Cover)

 

d

Finance and Performance Committee workshop - Annual Budget 2020/2021 Emergency Budget - 13 May 2020 (Under Separate Cover)

 

e

Finance and Performance Committee Have Your Say Event – Annual Budget 2020/2021 Emergency Budget – Regional Stakeholder Session  (Under Separate Cover)

 

Ngā kaihaina

Signatories

Author

Sandra Gordon - Kaitohutohu Mana Whakahaere Matua / Senior Governance Advisor

Authoriser

Kevin Ramsay - Acting Group Chief Financial Officer

 


Finance and Performance Committee

18 June 2020

 

 

Te Komiti ā-Pūtea, ā-Mahi Hoki/Finance and Performance Committee
Forward Work Programme 2020

This committee controls expenditure across the Auckland Council Group and deals with the overall financial management and performance of the council parent organisation and Auckland Council Group and makes financial decisions outside of the annual budgeting processes.  The full terms of reference can be found here: Auckland Council Governing Body Terms of Reference

This committee meets bi-monthly commencing in March 2020

 

Area of work and Lead Department

Reason for work

Committee role

(decision and/or direction)

Expected timeframes

2020

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Planning and funding

Annual Budget

General Manager Financial Strategy and Planning

Statutory Process including review of rating policies

Decision to agree to the Consultation items

Recommend consultation document to consult with public (Feb); Emergency Budget (May)

Adopt consultation document to consult with public (Governing Body)

Consultation period – 21 February 2020 – 22 March 2020; 29 May 2020 – 19 June 2020 (Emergency Budget)

Hear feedback and deliberate budget scenarios (Apr)

Decisions made for Emergency Budget (Jul)

Recommend final Emergency Budget (Jul)

Adopt final Emergency Budget (Governing Body) (Jul)

Progress to date:

Mayoral Proposal for the Annual Budget 2020/2021 - Link to decision

Annual Budget 2020/2021 – consultation material overview - Link to decision  Link to Governing Body decision

Rates and Fees Issues for Annual Budget 2020/2021 - Link to decision Link to Governing Body decision

Adoption of consultation Material: Annual Budget 2020/2021 – Link to decision; Link to Governing Body decision

Amendments to the Revenue and Financing Policy – Link to decision; Link to Governing Body decision

Annual Budget 2020/2021 communication and engagement approach – Link to decision; Link to Governing Body decision

Annual Budget 2020/2021 consultation part 1 - local board feedback – Link to Emergency Committee decision

 

Rates and Fees Issues for the Emergency Budget 2020/2021 - Link to Emergency Committee decision

Rates Postponement for properties affected by COVID-19 - Link to Emergency Committee decision

Annual Budget 2020/2021 Emergency Budget public consultation approach - Link to Emergency Committee decision

Adoption of Consultation material: Emergency Budget Annual Budget 2020/2021- Link to Emergency Committee decision

Recommendations from the Emergency Committee 28 May 2020 on the Adoption of Consultation Material: Emergency Budget Annual Budget 2020/2021 -Link to Governing Body decision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Area of work and Lead Department

Reason for work

Committee role

(decision and/or direction)

Expected timeframes

2020

No meeting

No meeting

Mar

Apr

May meeting cancelled

Jun

Jul

No meeting

Sep

No meeting

Nov

No meeting

Half-yearly and annual reporting

Group Treasurer and Group Financial Controller

Statutory requirement and NZX listing requirement

Receive and approve half-year and preliminary full year NZX release (delegation to chair and deputy chair) (March)

Receive annual report (Sept)

Recommend adoption of annual report to Governing Body (Sept)

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 approve the release of the interim and full year Auckland Council group financial results to the NZX for each reporting period through to 30 June 2022.

·    Formal adoption of annual report is by the Governing Body

Progress to date:

Delegation for approval for releasing the interim and full year Auckland Council Group results to the NZX – Link to decision

Councillor approval of results announcement to the market for the half year ended 31 December 2019 – NZX Half Year Announcement – Link to document

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Budget Updates

General Manager Financial Strategy and Planning

Financial management

Decision to agree recommended budget changes outside of the Annual Budget/Long-term Plan, as required

Note:   This includes significant unbudgeted one-off expenditure.

Progress to date:

 

 

 

As required

Insurance Strategy and Placement

Chief Risk Officer

Financial management

Approve the council insurance strategy

Approve the annual insurance placement for Council

Progress to date:

Collection for data for insurance renewals currently underway and preparations being made for insurance roadshows where deductibles, limits and policy coverage will be assessed against market expectations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan guarantees and grant funding

Group Treasurer

Financial management

Review information and make decisions on loan guarantees and restructuring (including Parks)

Receive an update on the Eden Park loan guarantee and grant funding (six-monthly)

Receive progress update memos when appropriate

Progress to date:

Presentation from the Eden Park Trust Board – Link to decision

Woodhill Sands Trust - Guarantee (Loan Reset Request) – Link to decision

Community Loans Under $1 million – Link to decision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development Contributions policy

General Manager Financial Strategy and Planning

Policy review

Review development contribution policy

 

Progress to date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reporting and performance

Performance reporting quarterly – parent

General Manager Financial and Business Performance and Manager Corporate and Local Board Performance

Financial management

Monitor council parent financial and non-financial performance results on a quarterly basis, including Māori outcomes expenditure.

Q1 (Nov), Q2 (Mar), Q3 (Jun), Q4 (September)

Note:   Reporting in September must be considered as a confidential report until results are sent to NZX at the end of September.

Progress to date:

Auckland Council Group and Auckland Council 2019/2020 quarter one performance report to 30 September 2019 – Link to decision – Link to decision

Auckland Council Group and Auckland Council quarter two performance report to 31 December 2019 – Link to decision

Auckland Council Group and Auckland Council quarter three performance report to 31 March 2020 – refer to information memorandum contained on the agenda for 18 June 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance reporting quarterly – group

General Manager Financial and Business Performance and Manager Corporate and Local Board Performance

Financial management

Monitor Auckland Council group financial requirements on a quarterly basis.

Q1 (Nov), Q2 (Mar), Q3 (Jun), Q4 (Sept)

Progress to date:

Auckland Council Group and Auckland Council 2019/2020 quarter one performance report to 30 September 2019 – Link to decision – Link to decision

Auckland Council Group and Auckland Council quarter two performance report to 31 December 2019 – Link to decision

Auckland Council Group and Auckland Council quarter three performance report to 31 March 2020 – refer to information memorandum contained on the agenda for 18 June 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operational

Disposals

Auckland Council and Panuku Development Auckland

Panuku, working with all areas of council, is required through its Statement of Intent to identify and recommend to council properties that are surplus to requirements and can be considered for disposal.  These include general disposals to fund Long-term Plan projects.

Properties are recommended for acquisitions and disposal to the committee for approval in accordance with the Long-term Plan.

Agree to proceed with recommended disposals or acquisition, as required.

Progress to date:

 

 

 

 

As required

Funding and Levies (including Auckland Regional Amenities Funding Board, Museum of Transport and Technology and Auckland War Memorial Museum)

Manager CCO/ External Partnerships team

Statutory process

Approve annual funding levies for Auckland Regional Amenities Funding Board (Apr); Museum of Transport and Technology (Apr); and Auckland War Memorial Museum (Jun)

Approve Auckland Regional Amenities Funding Board (Apr)

Receive presentations from amenities via memorandum (Jun)

Progress to date:

Auckland Regional Amenites Funding Board: Delegate approval of Auckland Council’s submission for the 2020/2021 Funding Levy – Link to decision

Approval of the Auckland Regional Amenities Funding Levy 2020-2021 – Item had been deferred from the Finance and Performance Committee meeting held on 19 March 2020 to the meeting scheduled to be held on 23 April 2020.  Due to COVID-19, the item was considered at the Emergency Committee meeting held on 23 April 2020- Link to decision

MOTAT Annual Plan 2020-2021 – Item had been deferred from the Finance and Performance Committee meeting held on 19 March 2020 to the meeting scheduled to be held on 23 April 2020.  Due to COVID-19, the item was considered at the Emergency Committee held on 30 April 2020 – Link to decision

Auckland War Memorial Museum 2020/2021 levy – Item had been deferred from the Finance and Performance Committee meeting held on 19 March 2020 to the meeting scheduled to be held on 18 June 2020 

 

 

 

 

 

 

 

 

 

 

 

 

Review of committee forward work programme

Governance

Regular reporting

Approve forward work programme (Mar)

Receive updates (bi-monthly)

Review content of the forward work programme (six-monthly, commencing Sept)

Progress to date:

Finance and Performance Committee Forward Work Programme – Link to decision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Updated: 12 June 2020

     

 


Finance and Performance Committee

18 June 2020

 

Exclusion of the Public: Local Government Official Information and Meetings Act 1987

That the Finance and Performance Committee

a)      exclude the public from the following part(s) of the proceedings of this meeting.

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution follows.

This resolution is made in reliance on section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public, as follows:

 

C1       Council Group Insurance Renewal 2020

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

In particular, the report contains details of the proposed insurance strategy, policies and programme for which terms and costings are being sort from and negotiated with the insurance market

s48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.