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Resolution
number DT/2020/92
MOVED by Chairperson A Bennett, seconded by
Member T van Tonder:
The Chairperson put the substantive motion.
That the Devonport-Takapuna Local Board:
a)
notes that the Chairperson has, on behalf of the local board,
participated in workshops and meetings hosted by the Finance and Performance
Committee regarding the preparation of the 2020/1 Emergency Budget, and that
in arriving at its feedback the local board has considered information
provided by council staff alongside the 1,668 submissions received from respondents
residing in the Devonport-Takapuna Local Board area.
b)
supports an annual general rates increase of 3.5% for the
2020/21 financial year, as:
iv) it reflects the
nature of the feedback the board has received from its community in response
to the question asked as part of consultation on the Emergency Budget (noting
approximately 45% of all respondents from the local board area indicated
support for the proposal);
v)
any rates increase set at a lower level (2.5% or lower,
including no rates increase) would make post COVID-19 pandemic recovery
exponentially more difficult; and
vi) any rates
increase set at a lower level (2.5% or lower, including no rates increase)
would result in council having to re-adjust other funding mechanisms
accordingly to aid recovery, such as drastically increasing the
debt-to-revenue ratio and relying more heavily on asset recycling /
divestment as means to fund council activities.
c)
supports the introduction of a COVID-19 Rates Postponement
Scheme for the 2020/21 financial year, as it:
iii) reflects the
nature of the feedback the board has received from its community in response
to the question asked as part of consultation on the Emergency Budget
(approximately 67% of all respondents from the local board area indicated
support for the proposal); and
iv) allows
ratepayers who are struggling financially as a result of the COVID-19
pandemic to defer up to $20,000 of their rates for the 2020/21 financial
year, noting that at the end of the postponement period ratepayers accessing
the scheme would have until 30 June 2022 to pay off the balance.
d)
does not support the inclusion of interest and administration
fees as part of the COVID-19 Rates Postponement Scheme.
e)
supports the suspension of the Accommodation Provider Targeted
Rate (APTR) for hotels, motels, hostels and accommodation businesses until 31
March 2021; as it:
iii)
reflects the nature of the feedback the board has received from
its community in response to the question asked as part of consultation on
the Emergency Budget (approximately 73% of all respondents from the local
board area indicated support for the proposal); and
iv)
will assist the accommodation sector who are struggling
financially as a result of the COVID-19 pandemic due to its negative impact
on the tourism and accommodation industry, whilst noting that the APTR will
only be charged for the last three months of the 2020/21 financial year (1
April – 30 June 2021).
f)
does not support the suspension of the Accommodation Provider
Targeted Rate (APTR) for AirBnB properties or similar entities, as these
properties are generally investments rather than businesses, and are
fundamentally different to ‘traditional’ hotels, motels, hostels,
and accommodation businesses.
g)
accepts
that the local board will need to absorb a 10% reduction in its locally
driven initiative (LDI) operational budget for the 2020/21 financial year as
part of a 3.5% rates increase as a result of lost revenue associated with the
COVID-19 pandemic, and that the local board will work with council staff to
identify agreed savings as part of the board’s 2020/21 work programmes.
h)
accepts
that the local board will need to absorb additional savings through its asset
based services (ABS) capital and operational budgets under a 3.5 % rates
increase, noting that:
i)
such savings will result in delaying the renewal of some assets
for at least 12 months;
ii)
such savings will not include any reduction in budgets provided
to those community organisations supported through ABS budgets that provide important services to the
community and businesses during the post COVID-19 recovery period; and
iii)
the
local board will work with council staff to identify agreed savings as part
of the board’s 2020/21 work programmes.
i)
supports
the concept of asset recycling and the sale of council assets / holdings as a
means of increasing revenue to fund council initiatives, but only if those
assets proposed for recycling or divestment have been identified as not
serving any current or future service requirement
j)
does
not support the divestment or sale of park or reserve land or other open
space that currently fulfils a service requirement, or any other land that
has been identified as needed to respond to future growth / demand.
k)
reiterates aspects of its feedback on the draft Emergency
Budget, which was provided to the Finance and Performance Committee by way of
resolution at the board’s 5 May 2020 meeting, as follows:
i)
the local board does not support any reduction or savings in
maintenance, particularly in the areas of parks, reserves, footpaths,
roading, open space and town centers;
ii)
the local board supports consideration of a reduction in the
funding of service levels by reducing the hours of operation for facilities
in the local board area for the 2020/21 financial year, in the acknowledgement
that such reduction in funding will help contribute to finding the savings
required as a result of the COVID-19 pandemic;
iii)
the local board believes that the bulk of savings sought through
the Emergency Budget 2020/21 should be found via deferral of non-committed
capital projects for a period of 1-2 years, or by deferring non-essential
renewal of assets for a similar period of time (including limiting non-urgent
road maintenance works or transport capital programmes of work); and
iv)
the local board does not support Auckland Transport’s
proposal to reduce public transport services or delaying the introduction of
planned new services a means of achieving savings targets.
l)
does not support any proposed reduction in funding support for
pest eradication, including any reduction in the quantum of funding that has
historically been made available through regional schemes, such as the
Natural Environment Heritage Grant.
m)
does not support any reduction in spend on Auckland Transport
safety initiatives or footpath improvements, as this may result in more
deaths and / or serious injuries to cyclists, pedestrians, and other road /
footpath users.
n)
does not support the proposed reduction in the local board
allocation of the Auckland Transport Local Board Capital Fund (ATLBTCF) as
indicated as part of the proposed 3.5% rates increase, which would amount to
a 75% overall reduction in the amount available to local boards ($20 million
budget reduced to $5 million).
o)
strongly advocates to both the Governing Body and Auckland
Transport that the funding that the local board allocated to the Francis /
Esmonde Road connection through its Auckland Transport Local Board Capital
Fund (ATLBTCF) is not cut or deferred, and that this project proceed in
accordance with the original project timelines.
p)
strongly advocates for the retention of the full budget for the
Lake Road Improvement Project (total of $47 million), noting the strong level
of public support received for the project as part of consultation on the
2020/21 Emergency Budget.
q)
strongly
advocates for the retention of the budget and subsequent recommencement of
the stormwater upgrade at Kitchener, Shakespeare and Omana roads in Milford
as a priority.
r)
does not support any cut or reductions to budgets associated
with the contractually committed Hurstmere road project, as its timely
completion is crucial to support local businesses in Takapuna.
The substantive
motion was declared.
CARRIED
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