Minutes of Extraordinary Finance and Performance Committee

7	10-year Budget 2021-2031 - Process overview
	Cr P Young entered the meeting at 10.03am. Cr R Hills entered the meeting at 10.10am. Cr W Walker entered the meeting at 10.12am. Cr J Watson entered the meeting at 10.17am. Cr D Newman entered the meeting at 10.19am.
	Note: changes to the original motion were incorporated, with the agreement of the meeting.
	Resolution number FIN/2020/88 MOVED by Chairperson D Simpson, seconded by Cr S Henderson: That the Finance and Performance Committee: a) note the contents of this report, which outlines the process and sets the context for the other reports and decisions on today’s agenda. CARRIED

10-Year Budget 2021-2031 - Adoption of the Draft Tūpuna Maunga o Tāmaki Makaurau Operational Plan 2021/2022 and summary

Resolution number FIN/2020/89

MOVED by Cr L Cooper, seconded by Cr C Casey:

That the Finance and Performance Committee:

a) recommend to the Governing Body to adopt the Draft Tūpuna Maunga Authority Operational Plan 2021/2022 and a summary of the draft plan (for inclusion in the consultation material for the 10-year Budget 2021-2031).

CARRIED

9	10-year Budget 2021-2031: regional topics for consultation - local board input
	IMSB Chair D Taipari left the meeting at 10.36am.
	Note: changes to the original motion were incorporated, adding a new clause b), with the agreement of the meeting.
	Resolution number FIN/2020/90 MOVED by Chairperson D Simpson, seconded by Cr A Dalton: 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. b) thank the Local Boards for their feedback in a very tight timeframe provided. CARRIED

10	10-year Budget 2021-2031 - Mayoral Proposal items for consultation
	IMSB Chair D Taipari returned to the meeting at 10.43am. IMSB Member T Hohneck left the meeting at 11.19am. Cr A Filipaina left the meeting at 11.27am. IMSB Member T Hohneck returned to the meeting at 11.30am. Cr T Mulholland entered the meeting at 11.36am.
	Note: changes to the original motion amending clause a) were incorporated, with the agreement of the meeting.
	Resolution number FIN/2020/91 MOVED by Mayor P Goff, seconded by Deputy Mayor BC Cashmore: That the Finance and Performance Committee: a) recommend to the Governing Body that it agree to key items set out in the Mayoral Proposal as the basis for public consultation on the 10-year Budget 2021-2031 including: i) proposed levels of spending and investment that will enable continued delivery of key services and strong investment in new and renewed assets, supported by proposals to: A) make permanent savings for Auckland Council of $90 million from the $120 million included in the Emergency Budget. B) increase the target for asset recycling to $70 million per annum for the next three years. C) increase Auckland Council group’s use of borrowing as represented by the debt to revenue ratio to up to 290 per cent for the next three years, gradually returning to 270 per cent, subject to not impacting negatively on the group’s credit rating. This will be done in a manner that provides financial capacity for future shocks and reflects a strong commitment to long-term financial prudence. D) increase average general rates by a one-off 5 per cent for 2021/2022 to help meet the challenges caused by COVID-19, returning to a 3.5 per cent increase per annum from 2022/2023. ii) proposed investment in a package of new climate actions to reduce greenhouse gas emissions and adapt to the impact of climate change. iii) a proposal to adopt a more focused approach to providing infrastructure to support growth, while working with the government and the private sector to find new ways of funding infrastructure to more fully meet substantial demand across all areas in Auckland. iv) a proposal to work with local boards and the community to explore how community services can be provided differently through more focused investment in community assets, tailored services targeting areas of greatest needs, alternative service delivery through partnerships, grants, digital and other non-asset approaches, and consolidating Auckland Council’s community asset portfolio to best meet a fit for service network. v) a proposal to extend the Water Quality Targeted Rate from 2028 to 2031 to improve water quality in other areas of the city, with an initial focus on the Eastern Isthmus and Manukau harbour catchments. vi) a proposal to extend the Natural Environment Targeted Rate from 2028 to 2031 to continue the natural environment protection programmes to lock in the benefits realised from past efforts in pest control and ensure ongoing protection for indigenous biodiversity within the region. vii) proposed draft 10-year Budgets based on the attached reports. CARRIED
	Note: Pursuant to Standing Order 1.8.6 Cr C Fletcher requested that her vote against clause a) i) D) be recorded.

The meeting adjourned at 12.19pm and reconvened at 12.50pm.

Cr S Henderson, Cr R Hills, IMSB Member T Hohneck, Cr S Stewart, Cr G Sayers, IMSB Chair D Taipari and Cr W Walker, were not present.

10-year Budget 2021-2031 - Other matters for consultation

Cr W Walker returned to the meeting at 12.51pm.

Cr S Henderson returned to the meeting at 12.51pm.

Cr R Hills returned to the meeting at 12.51pm.

Cr S Stewart returned to the meeting at 12.55pm.

Cr G Sayers returned to the meeting at 1.03pm.

Resolution number FIN/2020/92

MOVED by Mayor P Goff, seconded by Cr S Henderson:

That the Finance and Performance Committee:

a) recommend to the Governing Body that the 10-year Budget 2021-2031 consultation document and supporting information include the following items for consultation:

i) a proposal for the transfer of ownership and a change in use for Bledisloe House through entering into a development agreement for a long-term ground lease of 125 years.

ii) a proposal to divest the following heritage scheduled council-owned buildings:

A) 2 The Strand, Takapuna

B) 3 Victoria Road, Devonport

iii) a proposal to provide for long-term leases on the following council-owned development sites in the city centre waterfront precinct, on which Panuku plans to partner with private developers to develop these sites:

A) North Wharf – site 14

B) Jellicoe Street – site 19

C) Silo 6 – site 12

D) Wynyard Point east to west – Block A

E) Wynyard Point north to south – Block B

F) 44-56 Hamer Street – SeaLink ferry terminal

G) 101 Pakenham Street West – Lysaght Building

b) recommend to the Governing Body that it approve for consultation as part of the 10-year Budget 2021-2031 these draft policies attached to this report:

i) the draft revised CCO Accountability Policy

ii) the draft revised Auckland Airport Shareholding Policy.

c) recommend to the Governing Body that it agree to consult on a proposal to revise the Regional Fuel Tax scheme once a draft list of specific projects to be funded by the Regional Fuel Tax has been determined in conjunction with the Regional Land Transport Plan process.

CARRIED

12	Changes to the Urban Rating Area and Rating of Farm and Lifestyle Properties within the Urban Rating Area
	IMSB Chair D Taipari returned to the meeting at 1.14pm. Cr A Filipaina returned to the meeting at 1.30pm.
	MOVED by Mayor P Goff, seconded by Deputy Mayor BC Cashmore: That the Finance and Performance Committee: a) recommend to the Governing Body that it agree to consult as part of the draft 10-year Budget 2021-2031 on: i) aligning the Urban Rating Area with the Rural Urban Boundary in the unitary plan and charging urban rates for all land within the Rural Urban boundary except land located in Warkworth and land zoned Future Urban, but including the Future Urban zoned Ockleston Landing and Halls Farm developments. ii) charging farm and lifestyle properties located in the Urban Rating Area urban residential rates b) recommend to the Governing Body that it agree to consult on the amendments to the Revenue and Financing Policy.

	MOVED by Cr G Sayers, seconded by Cr W Walker an amendment by way of replacement: That the Finance and Performance Committee: a) recommend to the Governing Body that it agree to consult as part of the draft 10-year Budget 2021-2031 on: i) aligning the Urban Rating Area with the Rural Urban Boundary in the unitary plan and charging urban rates for all land within the Rural Urban boundary except land located in Warkworth, Kumeu/Huapai and Riverhead and land zoned Future Urban, but including the Future Urban zoned Ockleston Landing and Halls Farm developments. ii) charging farm and lifestyle properties located in the Urban Rating Area urban residential rates. LOST
	The substantive motion was put:
	Resolution number FIN/2020/93 MOVED by Mayor P Goff, seconded by Deputy Mayor BC Cashmore: That the Finance and Performance Committee: a) recommend to the Governing Body that it agree to consult as part of the draft 10-year Budget 2021-2031 on: i) aligning the Urban Rating Area with the Rural Urban Boundary in the unitary plan and charging urban rates for all land within the Rural Urban boundary except land located in Warkworth and land zoned Future Urban, but including the Future Urban zoned Ockleston Landing and Halls Farm developments. ii) charging farm and lifestyle properties located in the Urban Rating Area urban residential rates b) recommend to the Governing Body that it agree to consult on the amendments to the Revenue and Financing Policy. CARRIED
	Note: Pursuant to Standing Order 1.8.6, the following councillors requested that their votes against be recorded: · Cr C Fletcher · Cr T Mulholland · Cr S Stewart · Cr G Sayers · Cr W Walker · Cr J Watson

Cr C Fletcher left the meeting at 2.03pm.

Other Rates and Fees Issues for 10-Year Budget 2021-2031

Cr C Fletcher returned to the meeting at 2.06pm.

Note: A minute’s silence was observed at 2.11pm to acknowledge the one-year anniversary of the tragedy on Whakaari/White Island where 20 tourists and two tour guides lost their lives.

Cr C Darby left the meeting at 2.46pm.

Note: changes to the original motion were incorporated, adding a new clause e), with the agreement of the meeting.

Note: the motion was taken in parts.

Resolution number FIN/2020/94

MOVED by Chairperson D Simpson, seconded by Cr D Newman:

That the Finance and Performance Committee:

a) recommend to the Governing Body that it agree to consult as part of the draft 10-year Budget 2021-2031 on:

i) introducing an electricity network resilience targeted rate to be set on Vector’s utility assets of $10.5 million to fund enhanced maintenance of our trees that present a risk to the electricity network

ii) reinstating the Accommodation Provider Targeted Rate for the 2021/2022 year, and also consulting on options to extend the suspension until December 2021 or June 2022

iii) extending the duration of and investment programmes for the City Centre Targeted Rate until 2031 to align with the 10-year Budget 2021-2031

iv) setting the Waitākere Rural Sewerage Targeted Rate at $290 for the 2021/2022 year and adjusting it annually for the council rate of inflation in costs

v) adjusting for cost inflation the waste management targeted rates, local board swimming pool entry targeted rates, Swimming/Spa Pool Compliance Targeted Rate and the City Centre Targeted Rate

vi) reinstating interest on loan repayment targeted rates

vii) amending the Clevedon Water and Wastewater Connection Targeted Rate to a differentiated rate based on the nature of connection and timing of joining to be paid by Clevedon residents who participate in the scheme to connect to Watercare’s reticulated water and/or wastewater system

viii) changes to the Business Improvement District Targeted Rates proposed by the business associations, including the extension of the boundaries for the Manurewa BID, Glen Innes BID and Dominion Rd BID

ix) that stormwater services be undertaken in a joint management arrangement with the relevant communities for the Te Arai and Okahukura drainage districts, with the provision of those services to be funded from a targeted rate on the benefiting properties in the Te Arai and Okahukura drainage districts

x) that the provision of stormwater services be undertaken by a private management arrangement with the community for the Glorit drainage district with funding provided directly by the benefiting landowners.

xi) changes to fees and charges as set out in this report

xii) amendments to the Revenue and Financing Policy.

b) recommend to the Governing Body that it agree to reallocate decision making responsibility for the Te Arai, Okahukura and Glorit drainage districts from the Rodney Local Board to the Governing Body

c) agree to retain the current long-term differential strategy as set out in the Revenue and Financing Policy.

d) note that the Upper Harbour Local Board may recommend to the Governing Body for consultation as part of the 10-year Budget 2021-2031 a transport targeted rate to fund public transport services in the Paremoremo and Albany Heights area.

CARRIED

Note: Pursuant to Standing Order 1.8.6 the following councillors requested that their vote against clause a) ii), be recorded:

· Cr C Fletcher

· Cr S Stewart

· Cr W Walker

· Cr J Watson

Note: Pursuant to Standing Order 1.8.6 Cr G Sayers requested that his vote against clause a) ix), be recorded.

Resolution number FIN/2020/95

MOVED by Chairperson D Simpson, seconded by Cr D Newman:

That the Finance and Performance Committee:

e) recommend to the Governing Body to consult as part of the draft 10-year Budget 2021-2031 on increasing investment in water quality improvement funded by increasing the Water Quality Targeted Rate by 5.0 per cent for 2021/2022 and then at 3.5 per cent per year. This adds $3.30 to the rates paid by the average residential property in year one and $2.30 in year two of the 10-year Budget 2021-2031.

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

For

Cr J Bartley

Cr C Casey

Deputy Mayor BC Cashmore

Cr P Coom

Cr L Cooper

Cr A Dalton

Cr A Filipaina

Cr C Fletcher

Mayor P Goff

Cr S Henderson

Cr R Hills

Cr T Mulholland

Cr D Newman

Chairperson D Simpson

Cr S Stewart

IMSB Chair D Taipari

Cr W Walker

Cr J Watson

Cr P Young

Against

Cr G Sayers

Abstained

The motion was declared carried by 19 votes to 1.

CARRIED

14 Consideration of Extraordinary Items

There was no consideration of extraordinary items.

2.59pm The Chairperson thanked Members for their attendance and attention to business and declared the meeting closed.

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

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

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

Chairperson	Cr Desley Simpson, JP
Deputy Chairperson	Cr Shane Henderson
Members	Cr Josephine Bartley	Via electronic link
	Cr Dr Cathy Casey
	Deputy Mayor Cr Bill Cashmore
	Cr Pippa Coom
	Cr Linda Cooper, JP
	Cr Angela Dalton
	Cr Chris Darby
	Cr Alf Filipaina
	Cr Christine Fletcher, QSO
	Mayor Hon Phil Goff, CNZM, JP
	Cr Richard Hills	From 10.10am, Item 7
	IMSB Member Terrence Hohneck(alt)	Until 12.19pm, Item 10
	Cr Tracy Mulholland	From 11.36, Item 10
	Cr Daniel Newman, JP	From 10.19am, Item 7
	Cr Greg Sayers
	Cr Sharon Stewart, QSM
	IMSB Chair David Taipari
	Cr Wayne Walker	From 10.12am, Item 7
	Cr John Watson	From 10.17am, Item 7
	Cr Paul Young	From 10.03am, item 7

Members	IMSB Member Renata Blair
	Cr Fa’anana Efeso Collins