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Finance and
Performance Committee
09 December
2020
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10-year
Budget 2021-2031: regional topics for consultation - local board input
File No.: CP2020/17839
Te take mō te
pūrongo
Purpose of the report
1. To
provide an overview of local board input on regional consultation content for
the 10-year Budget 2021-2031.
Whakarāpopototanga matua
Executive summary
2. As
part of Auckland Council’s shared governance model, local boards have a
legislative role to provide input on regional plans. For each 10-year and
annual budget local boards provide input in two ways:
· Preparing local content – specifically for local board agreements that set out local priorities and activities for
the financial year, which are agreed between local boards and the Governing
Body.
· Providing input into regional content, including providing feedback
on the regional items proposed to be consulted on, which includes the Mayoral
Proposal 10-year Budget 2021-2031 (the Mayoral Proposal).
3. For
the 10-year Budget 2021-2031, local boards agreed both their local content for
consultation and their feedback on the regional items proposed to be consulted
on at business meetings from 1 to 3 December 2020.
4. This
report summarises the feedback from local boards on regional items proposed to
be consulted on for the Finance and Performance Committee to consider.
This report focuses on common themes and, as such, does not include all the
matters raised in local board resolutions. A complete set of the local board
resolutions is provided in Attachment A.
5. Key
areas of support for regional consultation content include:
· Strong support for consulting on increased spending to reduce
greenhouse gas emissions and deal with the impacts of climate change. Twelve
local boards supported the proposed level of investment for consultation and
five local boards supported a higher level of investment.
· Seventeen local boards support plans to extend both the Water
Quality Targeted Rate and the Natural Environment Targeted rate (from 2028 to
2031) to fund continuing work on these programmes.
· Sixteen local boards specifically note their support for the
reinstatement of the Local Board Transport Capital Fund.
· Thirteen local boards support consulting on the one-off increase in average general rates of five per cent for the
2021/2022 financial year and fourteen local boards support consulting on
borrowing to be at a temporarily higher debt-to-revenue ratio of up to 290 per
cent for the first three years. Additionally, two local boards support
consultation on a higher rates increase. Support for asset recycling and annual
savings was mixed.
6. Both
regional and local consultation items will be incorporated into the 10-year
Budget consultation document and supporting information, which are planned to
be adopted by the Governing Body on 18 February 2021. Consultation
is planned to take place from 22 February to 22 March 2021 and final
decisions and the adoption of the 10-year Budget 2021-2031 will be made in June
2021.
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Ngā tūtohunga
Recommendation/s
That the Finance and
Performance Committee:
a) consider
input from local boards when making recommendations to the Governing Body on
regional items to be consulted on for the 10-year Budget 2021-2031.
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Horopaki
Context
7. The 10-year Budget sets out Auckland Council’s activities and
community outcomes over 10 years and provides for integrated decision-making
and coordination of the council’s resources, including how to pay for
those activities. The Governing Body is responsible for adopting the 10-year
Budget. As part of this process, local boards develop annual local board
agreements which are agreed between local boards and the Governing Body (and
are included in the 10-year Budget).
8. When
making decisions, the Governing Body has a statutory obligation to consider the
views and preferences of the local boards, if the decision affects, or may
affect the responsibilities or operations of the local board or the well-being
of communities within its local board area.
Developing regional consultation content
9. Finance
and Performance Committee workshops have been held from August to November 2020
to develop items for consultation for the 10-year Budget. The Mayoral Proposal
was then released on 1 December 2020.
10. Local board
chairs were invited to attend the Finance and Performance Committee workshops
where the regional consultation topics were discussed. All local board members
were provided access to summarised versions of the presentations.
11. This
report provides an opportunity for local boards to provide formal input on the
items proposed to be consulted on for the 10-year Budget and for the Governing
Body (through the Finance and Performance Committee) to consider the views
expressed by the local boards.
Tātaritanga me ngā
tohutohu
Analysis and advice
12. Local
boards have been asked to provide input on regional items considered for
consultation content, including feedback on the Mayoral Proposal.
13. This report summarises the feedback from local boards and focuses on
common themes relating to key topics in the Mayoral Proposal. As such, it does
not include all the matters raised in local board resolutions. Most local
boards did not provide feedback on every topic in the Mayoral Proposal.
14. The full set of local board resolutions are provided in Attachment A
(local board resolutions on the Mayoral Proposal and regional topics for
consultation for the 10-year Budget 2021-2031).
Climate change
15. The Mayoral Proposal is to increase expenditure by around $150
million (from the overall budget) to reduce greenhouse gas emissions and deal
with the impacts of climate change. This level of investment is supported for
consultation by twelve local boards (Albert Eden, Aotea
/ Great Barrier, Devonport-Takapuna, Franklin, Hibiscus
and Bays, Māngere-Ōtāhuhu, Manurewa,
Maungakiekie-Tāmaki, Ōtara-Papatoetoe, Waiheke, Waitākere Ranges and Whau local boards). Waiheke Local Board suggested that the
additional funding for climate
change programmes should be ring fenced and identified as a targeted rate. A
number of local boards note their support for particular projects.
16. Five local boards support a higher level of investment to accelerate
climate action (Henderson-Massey, Kaipātiki, Papakura, Puketāpapa and Waitematā local
boards).
Transport spending
17. The Mayoral
Proposal outlines an extra $550 million for transport projects in the first
three years, to continue with key projects. Seven local boards support
additional funding for transport projects (Franklin, Hibiscus
and Bays, Howick, Manurewa, Ōtara-Papatoetoe, Puketāpapa
and Rodney local boards) and indicated key areas of focus for that spending.
18. Sixteen
local boards specifically note their support for the reinstatement of the Local
Board Transport Capital Fund (Albert-Eden,
Aotea / Great Barrier, Devonport-Takapuna,
Franklin, Hibiscus and Bays, Howick, Manurewa, Maungakiekie-Tāmaki,
Ōrākei, Ōtara-Papatoetoe, Papakura, Puketāpapa, Upper
Harbour, Waiheke, Waitākere Ranges and Waitematā local boards).
Infrastructure for growth
19. Additional funding
to facilitate accelerated infrastructure investment for new housing over the
first three years of the 10-year Budget is outlined in the Mayoral Proposal.
However, because there would be a limit on the level of funding available, a
focused approach to providing this infrastructure is proposed. Ten local boards
support this focused or targeted approach (Albert-Eden, Franklin, Howick, Kaipātiki, Māngere-Ōtāhuhu, Manurewa, Maungakiekie-Tāmaki, Ōtara-Papatoetoe, Papakura
and Waitematā local boards). Note that a
number of local boards outlined how the approach should be
targeted.
Community services and facilities
20. The
Mayoral Proposal supports a
focused investment approach with a potential increase in funding for community
services and facilities by $65 million over the next three years. Eight local
boards support this focused investment approach (Devonport-Takapuna,
Franklin, Hibiscus and Bays, Māngere-Ōtāhuhu,
Manurewa, Maungakiekie-Tāmaki,
Ōtara-Papatoetoe, and Papakura local boards).
21. Seven
local boards support significant additional investment in community facilities,
to keep the service levels and maintain the current asset portfolio (Henderson-Massey, Kaipātiki,
Puketāpapa, Rodney, Waitākere Ranges, Waitematā and Whau
local boards).
22. The need for more support to optimise local assets was noted by six
local boards (Hibiscus and Bays, Māngere-Ōtāhuhu, Manurewa, Maungakiekie-Tāmaki, Ōtara-Papatoetoe
and Papakura local boards). Of these, three local boards outlined the need for community
assets investment plans so local boards can update (and where needed)
rationalise the existing asset portfolio based on community needs and usage.
Issues of equity in the
distribution of assets between local board areas was raised by three local
boards (Aotea / Great Barrier, Franklin and Manurewa local boards).
Māori outcomes
23. Continued
investment of $150 million over 10 years is outlined in the Mayoral Proposal to
enable the council to drive delivery against the 10 Māori outcomes
strategic priorities. Seven local boards specifically noted their support for
investment in Māori outcomes (Henderson-Massey, Howick, Maungakiekie-Tāmaki,
Ōtara-Papatoetoe, Puketāpapa, Waitākere Ranges and Whau
local boards).
Environmental protection and water strategy
24. The
Mayoral Proposal outlines plans to extend both the Water Quality Targeted Rate
and the Natural Environment Targeted rate from finishing in 2028 to finishing
in 2031, to fund continuing work on these programmes. Seventeen local boards
support this proposal (Albert-Eden,
Aotea / Great Barrier, Devonport-Takapuna,
Franklin, Henderson-Massey, Hibiscus and Bays, Howick, Kaipātiki,
Māngere-Ōtāhuhu, Manurewa, Maungakiekie-Tāmaki,
Ōtara-Papatoetoe, Ōrākei, Puketāpapa, Waiheke,
Waitākere Ranges and Whau local boards).
25. Nine
local boards note the importance of water strategy reform or a resilient water
supply, including improving water quality (Aotea /
Great Barrier, Henderson-Massey, Hibiscus and
Bays, Howick, Māngere-Ōtāhuhu, Papakura,
Puketāpapa, Waitematā and Whau local
boards).
Level of spending and how we pay for it
26. The
Mayoral Proposal outlines capital investment of $31 billion and operating
expenditure of $55 billion for the council over the next 10 years. The proposed
package of investment levers to pay for this budget are outlined below,
including the local board feedback.
27. A one-off increase in average general rates of five per cent is
proposed for the 2021/2022 financial year, before returning to 3.5 per cent for
the remainder of the 10-year Budget. Local board feedback included:
· Thirteen local
boards support this proposal for consultation (Albert-Eden, Aotea/Great Barrier, Franklin,
Henderson-Massey, Hibiscus and Bays, Manurewa, Maungakiekie-Tāmaki, Ōrākei, Papakura, Puketāpapa, Waiheke, Waitākere Ranges and Whau local
boards).
· Māngere-Ōtāhuhu
and Ōtara-Papatoetoe local
boards raised concerns about affordability and noted that new rates should be
progressive.
· Rodney Local Board
would like an additional option for consultation of a
rates increase of eight per cent in the first year and then five per cent for
the subsequent two years.
· Waitematā Local
Board recommended a one-off increase in average general rates of eight per cent
for the 2021/2022 financial year, before returning to five per cent from the
following year onwards. It also recommended an option of 12 per cent be
included in the consultation material.
28. Annual
savings of at least $90 million are proposed, local board feedback included:
· Support from four
local boards (Aotea / Great Barrier, Franklin, Papakura and
Maungakiekie-Tāmaki). Aotea / Great Barrier note that the public should be
informed on what the impacts of savings would have. Papakura Local Board state
that the savings should not be at the expense of renewals or core services.
· Three local boards
state that cuts to operational budgets are not preferred as the cuts would have the most visible impact on
communities and in particular the most vulnerable (Henderson-Massey, Waitākere Ranges and Whau).
· Hibiscus and Bays,
and Rodney Local Boards would like evidence of how the savings can be achieved
without impacts on services or renewals.
· Waitematā Local Board believe that annual savings
should be reduced to $30 million a year.
29. Asset
recycling would continue, with surplus properties being sold to return $70
million a year over the next three years, with the proceeds being reinvested to
meet Auckland’s critical infrastructure needs. Local board feedback
included:
· The role of local
boards to lead or input into the asset sales process was noted by ten local
boards (Franklin, Hibiscus and Bays, Māngere-Ōtāhuhu, Maungakiekie-Tāmaki, Manurewa,
Ōtara-Papatoetoe, Papakura, Rodney, Upper Harbour and Waitematā local
boards).
· Five local boards
generally support the sale of non-strategic and non-service assets to reinvest
the proceeds (Franklin, Māngere-Ōtāhuhu,
Ōtara-Papatoetoe, Manurewa and Papakura local
boards).
· As noted in
paragraph 22, the need for more support to optimise local assets was noted by
six local boards.
· Three local boards
oppose asset sales generally (Henderson-Massey,
Waitākere Ranges and Whau local boards),
· Howick Local Board
request that parks and reserves are
not included in further asset recycling and that all
proceeds from local asset sales are reinvested in the local area.
· Waitematā Local
Board opposes an asset sales target of $70 million and instead suggests $40
million.
30. It
is proposed to increase borrowing to a temporarily higher debt-to-revenue ratio
of up to 290 per cent for the first three years, gradually returning to 270 per
cent thereafter. Fourteen local boards support the
proposal to increase borrowing (Albert Eden, Aotea / Great Barrier, Franklin, Henderson-Massey,
Hibiscus and Bays, Kaipātiki, Māngere-Ōtāhuhu,
Manurewa, Maungakiekie-Tāmaki, Ōtara-Papatoetoe, Papakura, Waitākere Ranges, Waitematā, and Whau
local boards).
31. As
noted in paragraph 24, seventeen local boards support extending the water
quality and natural environment targeted rates.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
32. This
report summarises local board feedback on regional items considered for
consultation. The climate impacts (both positive and negative) are summarised
in the Mayoral Proposal report to the Finance and Performance Committee on this
agenda.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
33. The council
group impacts of the regional consultation content are considered in the
Mayoral Proposal report to the Finance and Performance Committee on this
agenda.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
34. Local board views and feedback on the regional items considered for
consultation for the 10-year Budget are provided in this report.
35. Local boards have been involved in the development of these regional
items proposed for consultation, including:
· local board chairs attending Finance and Performance Committee
workshops
· all
local board members were provided access to summarised versions of the
presentations
· local
boards provided informal feedback and advocacy to the Finance and Performance
Committee on 11 November 2020.
Tauākī whakaaweawe
Māori
Māori impact statement
36. Many local board decisions are of importance to
and impact on Māori. The 10-year Budget, including local board
agreements, are important tools that enable and can demonstrate the
council’s responsiveness to Māori.
37. Many local boards, as outlined in their
resolutions, considered the impacts on Māori
within their local board area.
Ngā ritenga
ā-pūtea
Financial implications
38. The 10-year Budget is a statutory process which must be completed
every three years. The council budget provides for the resourcing to deliver this
project.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
39. The Governing Body must consider the views and preferences expressed
by local boards when making decisions that affect those local board areas, as
this is a legislative requirement and part of Auckland Council’s shared
governance model.
Ngā koringa ā-muri
Next steps
40. The regional
and local consultation items will be incorporated into the 10-year Budget
consultation document and supporting information, which is planned to be
adopted by the Governing Body on 18 February 2021.
41. Aucklanders
will have the opportunity to give feedback on regional and local content
contained in the 10-year Budget. Consultation will take
place from 22 February to 22 March 2021. All feedback received from
submitters will be analysed by staff and made available for consideration by
the local boards and the Governing Body.
42. Following
consultation, the Governing Body and the local boards will make decisions on the
10-year Budget, including local board agreements, in June 2021.
Ngā tāpirihanga
Attachments
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No.
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Title
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Page
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10-year Budget 2021-2031 regional topics for
consultation - Local Board feedback
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11
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Ngā kaihaina
Signatories
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Author
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Rachel Wilson - Senior Policy Advisor
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Authorisers
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Louise Mason – General Manager Local Board
Services
Phil Wilson - Governance Director
Kevin Ramsay - Acting Group Chief Financial Officer
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