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Howick Local
Board
09 July 2020
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Howick
Local Board input into the Emergency Budget 2020/2021
File No.: CP2020/09113
Te take mō te
pūrongo
Purpose of the report
1. To
seek feedback on the proposed regional topics in the Emergency Budget 2020/2021.
Whakarāpopototanga matua
Executive summary
2. Auckland
Council publicly consulted from 29 May to 19 June 2020 to seek community views
on the proposed Emergency Budget 2020/2021.
3. The Annual Budget 2020/2021 was first consulted on in February/March
2020 (Consultation part 1). Since this consultation was undertaken, the
COVID-19 pandemic has exerted significant pressure on the council’s
financial position. This will have flow-on effects for the proposed budget for
the 2020/2021 financial year. The council has considered what those impacts are
likely to be and has asked Aucklanders for their views on aspects of the
proposed budget, now referred to as Emergency Budget 2020/2021, through a
second round of consultation (Consultation part 2).
4. During the second round of consultation, Aucklanders were asked for
their views on three key proposals:
· general rates increase for
2020/2021 of either 2.5 per cent or 3.5 per cent
· rates postponement for
ratepayers impacted by COVID-19
· suspending the targeted
rate paid by accommodation providers.
5. The
council received feedback through telephone interviews, written forms,
including online and hard copy forms, emails and letters.
6. This
report summarises the public feedback received through Consultation part 2 on
the proposed Emergency Budget 2020/2021.
7. Local board views on these regional matters will be
considered by the Governing Body (or relevant committee) before making final
decisions on the Emergency Budget 2020/2021.
8. Out
of the 34,915 submissions received on the regional proposals in the Emergency
Budget 2020/2021, 2549 submissions were from people living in the Howick Local
Board area.
9. Of the 1492 submitters from the Howick Local Board are who responded
to question 1 (a proposed general rates increase for 2020/2021 of either 3.5%
or 2.5%), 51.4 per cent supported an increase of 2.5 per cent while 26.7
per cent supported an increase of 3.5 per cent.
10. Of the 1494 submitters from the Howick Local Board area that responded
to question 2 (a proposed rates postponement scheme), 64.8 per cent supported
the proposed scheme while 26.2 per cent did not support it.
11. Of the 1497 submitters from the Howick Local Board area that
responded to question 3 (a proposal to suspend the targeted rate paid by
accommodation providers), 71.7 per cent supported the proposal while 17.1 per
cent did not support it.
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Ngā tūtohunga
Recommendation/s
That the Howick Local Board:
a) receive consultation feedback on regional proposals in the
Emergency Budget 2020/2021 from people or organisations based in the Howick
Local Board area.
b) provide feedback on the proposed Emergency Budget 2020/2021.
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Horopaki
Context
12. Auckland
Council publicly consulted from 21 February to 22 March 2020 to seek community
views on the proposed Annual Budget 2020/2021 (Consultation
part 1).
13. Since this
consultation was undertaken, the COVID-19 pandemic has exerted considerable
pressure on the council’s financial position, which will have flow on
effects for the proposed budget for the 2020/2021 financial year. Given the new
financial realities facing Auckland, work has been undertaken to adjust the
proposed budget, now referred to as Emergency Budget 2020/2021.
14. The council
has undertaken further public consultation with Aucklanders for their views on
Auckland Council’s proposed ‘Emergency Budget’ in response to
the financial impacts of COVID-19 (Consultation part 2) which included
considering whether to adopt a 2.5 per cent rather than 3.5 per cent general
rates increase for the 2020/2021 financial year, among a suite of other measures aimed at
offering support to all ratepayers, including businesses, facing hardship.
This was carried out from 29 May to 19 June 2020.
15. The Emergency
Budget consultation asked Aucklanders for their view on three main proposals:
· general rates increase for
2020/2021 of either 2.5 per cent or 3.5 per cent
· rates postponement for
ratepayers impacted by COVID-19
· suspending the targeted
rate by accommodation providers.
16. This report includes analysis of the consultation feedback on the
regional proposals in the Emergency Budget 2020/2021 from people or
organisations based in the Howick Local Board area.
Local board input on regional plans
17. Local boards
have a statutory responsibility for identifying and communicating the interests
and preferences of the people in their local board area in relation to the
context of the strategies, policies, plans, and bylaws of Auckland Council.
This report provides an opportunity for the local board to provide input on the
proposed Emergency Budget.
18. Local Board
Plans reflect community priorities and preferences and are key documents that
guide both the development of local board agreements, which are adopted every
year as part of the Annual Budget, and input into regional plans.
Types of feedback
19. Overall
Auckland Council received feedback from 34,915 submitters in the consultation
period. This feedback was received through:
· written feedback –
hard copy and online forms, emails and letters
· over the phone.
Tātaritanga me ngā
tohutohu
Analysis and advice
20. The
proposed Emergency Budget 2020/2021 sets out priorities and how they will be
paid for. The regional consultation on the proposed Emergency Budget focused on
changes to rates and fees; the key proposals were:
· general rates increase for
2020/2021 of either 2.5 per cent or 3.5 per cent
· rates postponement for
ratepayers impacted by COVID-19
· suspending the targeted
rate by accommodation providers.
21. The
submissions received from the Howick Local Board area on these key issues is
summarised below, along with an overview of any other areas of feedback on
regional proposals with a local impact.
22. Sometimes
the council receives submissions that have come via a platform created by an
external organisation – these are referred to by the council as pro forma
submissions. The council has received an unusually large number of pro forma
submissions in this consultation process – a total of 987 from the Howick
Local Board area. These have primarily come from two organisations – the
Auckland Ratepayers’ Alliance (970) and Generation Zero (five), with 12
other pro forma submissions.
23. When
people submit via the council’s official consultation platform (either
the hardcopy feedback form or the digital form), they are directed to the
council’s consultation document and supporting information which are the
statutory basis for the consultation process. People who submit via pro forma
submissions often will not have had this same information presented to them
when they submit, although each pro forma submission is different in its
approach.
24. For
example, the submission form set up by the Auckland Ratepayers’ Alliance
did not refer to the council’s consultation material and did not ask the
same questions that were included on the council’s feedback form.
Generation Zero’s submission form also did not ask the same questions as
the council’s feedback form. However, Generation Zero did include links
to the council’s consultation material in the information supporting
their submission form.
25. As
with all feedback, pro forma submissions must be given due consideration with
an open mind, and it is up to elected members to determine the weight that is
given to this feedback.
General rates increase for 2020/2021
26. Aucklanders were asked about a proposed general rates increase of
either 2.5 per cent or 3.5 per cent for 2020/2021.
Question 1: We
are proposing an average general rates increase of either 2.5 per cent or 3.5
per cent for 2020/2021. We looked at, but could not responsibly propose rates
increases below 2.5 per cent because of the severe impacts that would have on
council services, new infrastructure, our debt levels and employment and
business activity in Auckland.
The scale of the financial challenge that we
face for next year with a revenue loss of over half a billion dollars due to
COVID-19 means that spending on some council services will need to be reduced
and many capital projects will be delayed even with the 3.5 per cent increase
we had previously planned.
With a lower rate increase of 2.5 per cent, we would need
to further reduce spending on council services and further delay investment in
transport, parks and community and town centre projects.
Which increase do you support?
27. The
graph below gives an overview of the responses from the Howick Local Board
area.
Graph One:
Q1: Which rates increase do you support? responses
Table One:
Q1: Which rates increase do you support? responses
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Q1
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Number of responses
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Per cent
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3.5 per cent
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398
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26.7%
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2.5 per cent
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767
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51.4%
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I don't know
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327
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21.9%
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Total
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1492
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100%
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Rates postponement for ratepayers impacted by COVID-19
28. Aucklanders were asked about a proposal to introduce a COVID-19
Rates Postponement Scheme.
Question 2: We are proposing a COVID-19 Rates
Postponement Scheme. This will allow ratepayers who are struggling financially
as a result of COVID-19 to defer up to $20,000 of their rates for the 2020/2021
year. At the end of the postponement period ratepayers would have to 30 June
2022 to pay off the balance (including interest and administration fees).
What do you think of our proposal?
29. The graph below gives an overview of the responses from the Howick
Local Board area.
Graph Two:
Q2: Rates Postponement Scheme responses
Table Two:
Q2: Rates Postponement Scheme responses
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Q2
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Number of responses
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Per cent
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I support the proposal
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968
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64.8%
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I don't support the
proposal
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392
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26.2%
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I don't know
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134
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9.0%
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Total
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1494
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100%
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Suspending the targeted rate paid by accommodation providers
30. Aucklanders were asked about a proposal to suspend the targeted rate
by paid by accommodation providers.
Question 3: Suspending the targeted rate paid by
accommodation providers. Restrictions on travel and mass gatherings due to
COVID-19 have resulted in us reducing our spending on visitor attraction and
major events. We are proposing to suspend the Accommodation Provider Targeted
Rate (APTR) which helps fund these activities until 31 March 2021. The APTR
will only be charged for the last three months of the next financial year
(2020/2021) as we increase our spending in this area. This proposal will assist
the accommodation sector who are struggling financially.
What do you think of our proposal?
31. The graph below gives an overview of the responses from the Howick
Local Board area.
Graph Three:
Q3: Suspend targeted rate paid by accommodation providers responses
Table Three:
Q3: Suspend targeted rate paid by accommodation providers responses
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Q3
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Number of responses
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Per cent
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I support the proposal
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1073
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71.7%
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I don't support the
proposal
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256
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17.1%
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I don't know
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168
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11.2%
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Total
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1497
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100%
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Other feedback
32. Aucklanders
were asked if they had any feedback on any other issues including the in
principle decisions made from the first round of consultation.
33. The
proposals that we previously consulted on, and that have been agreed in
principle, subject to consideration of any further feedback received in the
Emergency Budget consultation are:
· an
increase to the waste management base service targeted rate
· an
increase to the waste management standard refuse rate in former Auckland City
and Manukau City areas
· discontinuation
of the Waitākere rural sewerage service and targeted rate for ratepayers
in the Upper Harbour Local Board area effective from 1 July 2021
· introduction
of a new targeted rate for Central Park Henderson Business Improvement
District.
34. All
other themes from Howick Local Board area submissions are provided in the table
below.
Table Four:
Other themes from Howick Local Board area submissions
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Theme
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Positive sentiment
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Neutral sentiment
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Negative sentiment
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Total mentions
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Support cycleways
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53%
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0%
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47%
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51
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Charging for park and
ride
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14%
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14%
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71%
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7
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Support bus lanes
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40%
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20%
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40%
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5
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Addressing traffic
congestion
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0
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31%
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69%
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16
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Opinion on public
transport
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49%
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18%
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33%
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67
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Supporting fuel tax
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0%
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71%
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29%
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7
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Support light rail
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0%
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9%
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91%
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11
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Supporting Sky Path
project
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0%
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0%
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100%
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8
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Addressing climate
change
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84%
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5%
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11%
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19
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Opinion on water issues
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0%
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20%
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80%
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41
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Supporting Americas Cup
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0%
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5%
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95%
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21
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Supporting events in
the city
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37%
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14%
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49%
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35
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Addressing road safety
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100%
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0%
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0%
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20
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Supporting public
toilets
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77%
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23%
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0%
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13
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Opinion on inorganic
collection service
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0%
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50%
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50%
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6
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Opinion on reducing
Animal Shelter service
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0%
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3%
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97%
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32
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Information on submitters
35. The
tables and graphs below indicate what demographic categories Howick submitters
identified with. This information only relates to those submitters who provided
demographic information.
Graph Four:
Age and Gender of Howick Local Board submitters
Table Five:
Age and Gender of Howick Local Board submitters
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Age
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Male
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Female
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Gender Diverse
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< 15
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0
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2
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0
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15-24
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18
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36
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1
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25-34
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55
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86
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1
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35-44
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134
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168
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1
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45-54
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176
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156
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1
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55-64
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118
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129
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0
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65-74
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155
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108
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0
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75 +
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56
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19
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0
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Total
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712
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704
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4
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Graph Five: Ethnicity of Howick Local
Board submitters
Table Six: Ethnicity of Howick Local Board
submitters
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Ethnicity
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Number of submitters
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Per cent
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European
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747
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52%
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Pakeha/NZ European
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639
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45%
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Other European
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108
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8%
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Maori
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53
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4%
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Pacific
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31
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2%
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Samoan
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13
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1%
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Tongan
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6
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0%
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Other Pacific
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12
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1%
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Asian
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609
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43%
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Chinese
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460
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32%
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Indian
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83
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6%
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Other Asian
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66
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5%
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African/Middle
Eastern/Latin
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56
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4%
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Other
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41
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3%
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Total people providing
ethnicity
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1432
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107%
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Tauākī whakaaweawe
āhuarangi
Climate impact statement
36. The decisions
recommended in this report are procedural in nature.
37. Some of the
proposed projects in the Emergency Budget 2020/2021 may have climate impacts.
The climate impacts of any projects Auckland Council chooses to progress with
as a result of this, will be assessed as part of the relevant reporting
requirements.
38. Some of the
proposed projects in the Emergency Budget 2020/2021 will be specifically
designed to mitigate climate impact, build resilience to
climate impacts, and restore the natural environment.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
39. The Emergency
Budget 2020/2021 is an Auckland Council Group document and will include budgets
at a consolidated group level. Updates to budgets to reflect decisions and new
information may include items from across the group.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
40. Local
board decisions and feedback are being sought in this report. Local boards have
a statutory role in providing local board feedback on regional plans.
41. Local
boards play an important role in the development of the Emergency Budget
2020/2021. Local board nominees have also attended Finance and Performance
Committee workshops on the Emergency Budget 2020/2021.
Tauākī whakaaweawe
Māori
Māori impact statement
42. Many local board decisions are of importance to and impact on
Māori. Local board agreements and the Emergency Budget 2020/2021 are
important tools that enable and can demonstrate council’s responsiveness
to Māori.
43. Local board plans, which were developed in 2017 through engagement
with the community including Māori, form the basis of local priorities. There is a need to continue to build
relationships between local boards and iwi, and the wider Māori community.
44. The analysis included submissions made by mana whenua and the wider
Māori community who have interests in the rohe / local board area.
45. Ongoing conversations between local boards and Māori will
assist to understand each other’s priorities and issues. This in turn can
influence and encourage Māori participation in council’s
decision-making processes.
46. Some of the
proposed projects in the Emergency Budget 2020/2021 may have impacts on Māori.
The impacts on Māori of any projects Auckland Council chooses to progress
with as a result of this, will be assessed as part of the relevant reporting
requirements.
Ngā ritenga
ā-pūtea
Financial implications
47. Local board
input will be considered by the Governing Body for the Emergency Budget
2020/2021 decision-making.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
48. Local boards
are required to make recommendations on local financial matters for the
Emergency Budget by 10 July 2020, to enable the Governing Body to make
decisions on them when considering the Emergency Budget on 16 July 2020.
Ngā koringa ā-muri
Next steps
49. Recommendations and feedback from local boards will be provided to
the relevant governing body committees for consideration during decision making
at the Governing Body meeting on 16 July 2020.
50. Local boards
will approve their local board agreements between 20 to 24 July 2020 and
corresponding work programmes in August 2020.
51. The Governing Body will adopt the Emergency Budget on 30 July 2020.
Ngā tāpirihanga
Attachments
There are no attachments for
this report.
Ngā kaihaina
Signatories
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Author
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Ian Milnes - Senior Local Board Advisor Howick
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Authoriser
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Carol McKenzie-Rex - Relationship Manager for Franklin
and Howick Local Boards
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