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

 

Date:

Time:

Meeting Room:

Venue:

 

Thursday, 22 April 2021

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

 

15 April 2021

 

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

22 April 2021

 

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          C40 development additional land disposal recommendation - 331 (part) Great North Road, Henderson                                                             9

9          Consideration of ARAFA, MOTAT and Auckland Museum annual plans and council funding contributions, 2021/2022                     15

10        Emergency Budget 2020/2021 - Update April 2021                                                                      51

11        Accommodation Provider Targeted Rate Suspension (Covering report)                           55

12        Summary of Finance and Performance Committee information memoranda and briefings, including the Forward Work Programme - 22 April 2021                                57

13        Consideration of Extraordinary Items

PUBLIC EXCLUDED

14        Procedural Motion to Exclude the Public                           65

C1       CONFIDENTIAL: Reallocation of existing budget to acquire cemetery land in the 10-Year Budget 2021-2031 - Long-term Plan                 65


1          Apologies

 

An apology from Cr C Fletcher has 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, 18 March 2021 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

22 April 2021

 

C40 development additional land disposal recommendation - 331 (part) Great North Road, Henderson

File No.: CP2021/03093

 

  

Te take mō te pūrongo

Purpose of the report

1.       To obtain approval to divest part of 331 Great North Road, Henderson for urban renewal purposes as part of Panuku’s Unlock Henderson Programme.

Whakarāpopototanga matua

Executive summary

2.       331 Great North Road, Henderson is a 1,902m2 site. The site is primarily utilised as esplanade reserve and a parcel comprising approximately 267m2 is formed as part of the adjacent Alderman Drive car park.

3.       The adjacent Alderman Drive car park at 4-10 Edmonton Road has been approved for sale as part of Unlock Henderson and is intended to be redeveloped for urban renewal purposes. The Alderman Drive car park is located at the heart of the Oratia (Eco) precinct and is central to the ‘Urban Eco Centre’ vision for Henderson. The site was sponsored by the Mayoral office as Auckland’s entry into the C40 Reinventing Cities competition, a global initiative inviting innovative low carbon design. A development agreement was subsequently signed with the preferred party identified through this process.

4.       Through negotiations with the developer an opportunity to include the 267m2 parcel of 331 Great North Road into the proposed low carbon development has been identified. This will enhance the development potential of the site without resulting in a loss of open space amenity as the land is currently formed as carpark. It will also allow additional public realm projects to be progressed and provided as part of Unlock Henderson as sales proceeds from the 267m2 parcel will be utilised for projects with public good outcomes including proposed upgrades on the balance of the reserve.

5.       Consultation with council and its CCOs, iwi authorities and the Henderson-Massey Local Board about the proposed disposal of the subject parcel has now taken place. Feedback received from the council group is supportive of the proposed disposal.

6.       Subject to Finance and Performance Committee approval and the completion of due diligence and other statutory processes, Panuku will enter exclusive negotiations with the C40 developer.

7.       The 267m2 parcel is vested as local purpose (esplanade) reserve subject to the Reserves Act 1977. If approval is obtained to dispose of the subject parcel, the reserve status would need to be revoked. Final revocation of the reserve status will be subject to completing the statutory requirements of the Reserves Act 1977 and Local Government Act 2002, including public advertising. 

 

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a)      approve, subject to the satisfactory conclusion of any required statutory processes:

i)       the revocation of the reserve status of approximately 267m2 (subject to survey) of 331 Great North Road, Henderson comprised of an estate in fee simple more or less being Lot 1A DP 7645 contained in computer freehold register NA70A/209, as it is no longer required by Auckland Council for reserve purposes when assessed against council’s open space acquisition and provision policies;

ii)       the disposal of approximately 267m2 (subject to survey) of 331 Great North Road, Henderson comprised of an estate in fee simple more or less being Lot 1A DP 7645 contained in computer freehold register NA70A/209, as it is no longer required by Auckland Council for reserve purposes when assessed against council’s open space acquisition and provision policies;

b)      agree that final terms and conditions be approved under the appropriate delegations; and

c)       note that the disposal is for urban renewal purposes as part of Panuku’s Unlock Henderson Programme.

 

Horopaki

Context

8.       Unlock Henderson will catalyse and reinvigorate wider private development potential in central Henderson through proposed developments on specific council landholdings within the Unlock Henderson boundary. The development strategy for Unlock Henderson includes greater density with potentially four to six level apartments in two centrally located sites currently formed as car parks, including the Alderman Drive car park at 4-10 Edmonton Road.

Tātaritanga me ngā tohutohu

Analysis and advice

Property information

9.       331 Great North Road is a 1,902m2 site. It consists of esplanade reserve and an approximately 267m2 parcel formed as part of the Alderman Drive car park. The approximately 267m2 parcel is proposed for disposal. Images of the site are included as Figure 1 and 2 in Attachment A.

10.     In 1987, the former owner bequeathed 331 Great North Road to the former Henderson Borough Council for development as a park.  A small part of the site was utilised for road widening purposes and the residential building relocated in 1988.

11.     The Auckland Unitary Plan (AUP) zoning of the entirety of 331 Great North Road is Open Space - Conservation.

12.     331 Great North Road is not likely to be subject to offer back obligations to the former owner in accordance with section 40 of the Public Works Act 1981. This is on the basis that an exemption in accordance with s40(2)(a) of the Act applies. If approved for disposal, the terms and conditions of the exemption would be approved under appropriate Auckland Council property delegations.

13.     331 Great North Road is a local purpose (esplanade) reserve subject to the Reserves Act 1977.  Accordingly, the reserve status for the 267m2 parcel of 331 Great North Road will need to be revoked under section 24 of the Reserves Act 1977 before any proposed disposal is completed.

Development opportunity

14.     The adjacent Alderman Drive car park at 4-10 Edmonton Road has been approved for sale by the Council’s Finance and Performance Committee as part of the Unlock Henderson programme (resolution number FIN/2017/60).

15.     The Alderman Drive car park was a site sponsored by the Mayoral office as Auckland’s entry into the C40 Reinventing Cities competition, a global initiative inviting innovative low carbon design. A development agreement was subsequently signed with the preferred party identified through this process. Through negotiations with the developer an opportunity to include the subject 267m2 parcel of 331 Great North Road into the proposed low carbon development has been identified.

16.     The subject 267m2 parcel is poorly configured and underperforming in its current form. As it is formed as car parking, a change of use and disposal will not result in the loss of open space amenity. The proposed sale will enable it to be included in the C40 project. Possible public good outcomes from this inclusion include providing improved access to the C40 development and a landscaped interface with the adjacent reserve. This will achieve urban renewal outcomes and Panuku's objective of strategically creating value from assets.

17.     The proposed disposal of the subject 267m2 parcel is not deemed to be significant under Auckland Council’s Significance and Engagement Policy.

Tauākī whakaaweawe āhuarangi

Climate impact statement

18.     The proposed sale of this parcel will lead to land use changes. It is acknowledged that any form of construction and development can increase carbon emissions. The proposal to utilise the parcel as part of the medium density low carbon C40 development will have a minimal increase on emissions associated with development and construction given the innovative low carbon design associated with the development.

19.     Key features of the design include high density development (68 residential units); a low ratio of car parks to units; on-site photovoltaic energy systems; low carbon construction materials; and on-site stormwater management.

20.     In addition, Panuku is recommending a 12-metre esplanade strip be retained for the length of the adjacent former Alderman Drive car park site to minimise any potential risks from stream erosion.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

21.     Council's Parks, Sports and Recreation department has confirmed the subject 267m2 parcel has limited recreation value due to its location and configuration as car parking and support the proposed disposal.  Panuku consulted all relevant council departments and CCOs on the proposed disposal. No substantive feedback was received in response.

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

Local impacts and local board views

22.     Panuku attended Henderson-Massey Local Board workshops in February and November 2020.  Board members also attended a site meeting with Panuku staff in July 2020.

23.     At its 8 December 2020 business meeting, the Henderson-Massey Local Board endorsed the recommendation to revoke the reserve status and dispose of the approximately 267m2 parcel of 331 Great North Road for urban renewal purposes.

Tauākī whakaaweawe Māori

Māori impact statement

24.     Panuku engaged with 19 mana whenua iwi authorities on the proposed disposal of the 267m2 parcel of 331 Great North Road. This engagement sought to understand if there were any issues of cultural significance with the proposed disposal.  Information regarding the size and configuration of the parcel, and its proposed inclusion in the adjacent C40 development was provided as part of the engagement undertaken.

25.     No site-specific feedback was received regarding the parcel. If the subject parcel is approved for disposal, all mana whenua entities will be advised that council intends to dispose of the parcel to the adjacent C40 developer.

Ngā ritenga ā-pūtea

Financial implications

26.     The overall C40 development will not be materially impacted if the disposal is not approved. The planned Oratia cycleway/walkway link through the reserve will still proceed, but may not include landscaping of the existing retaining wall. The subject 267m2 area would likely remain in its current form, concrete and asphalt isolated from the rest of the reserve by the retaining wall and elevation. The C40 development will have other entrances.

27.     Any sales proceeds from the subject 267m2 area would be minimal given its size and configuration but would still be a contribution to the Transform and Unlock sales proceeds budget.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

28.     The subject parcel is separated from the rest of the reserve by a change in elevation and a wooden retaining wall (see Figure 3 in Attachment A). It has been identified that the retaining wall has a limited lifespan. Retaining the 267m2 parcel in council ownership will result in any risk associated with the retaining wall and ongoing operational costs remaining with council.

29.     The proposed disposal of the 267m2 parcel will remove this risk to council. Mitigation of the risks associated with the wooden retaining wall are included in the scope of the Oratia cycleway/walkway link and could include a landscaped interface between the C40 development and the remainder of the reserve. An artist's impression of a possible landscaped outcome is included as Figure 4 in attachment A.

Ngā koringa ā-muri

Next steps

30.     If approval is obtained from the Finance and Performance Committee to dispose of the subject 267m2 parcel of 331 Great North Road, the reserve status would need to be revoked. Final revocation of the reserve status will be subject to completing the statutory requirements of the Reserves Act 1977 and Local Government Act 2002, including public advertising.  A plan change to change the AUP zoning of the subject 267m2 parcel from Open Space – Conservation to Business Metropolitan Centre will be undertaken concurrently with the reserve revocation process.

31.     The developer of the adjacent C40 development is seeking to purchase the subject 267m2 parcel should it be approved for sale. Should the Finance and Performance Committee approve the disposal and subject to the completion of due diligence and other statutory processes, Panuku will enter negotiations with the C40 developer. The terms and conditions of the disposal would be approved under appropriate financial delegation.

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Images of 331 (part) Great North Road, Henderson

13

Ngā kaihaina

Signatories

Authors

John Carter - Priority Location Director, Panuku Development Auckland

Anthony Lewis - Senior Advisor, Portfolio Review, Panuku Development Auckland

Authorisers

Ian Wheeler - Chief Operating Officer, Panuku Development Auckland

Peter Gudsell - Group Chief Financial Officer

 


Finance and Performance Committee

22 April 2021

 

PDF Creator

PDF Creator


Finance and Performance Committee

22 April 2021

 

Consideration of ARAFA, MOTAT and Auckland Museum annual plans and council funding contributions, 2021/2022

File No.: CP2021/02211

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To consider the annual plans and approve the council funding contributions (‘levies’) for:

·    Auckland Regional Amenities Funding Act (ARAFA)

·    Museum of Transport and Technology (MOTAT)

·    Auckland War Memorial Museum (Auckland Museum, or the museum).

Whakarāpopototanga matua

Executive summary

Context

2.       The ARAFA, MOTAT and Auckland Museum Acts provide the ability for those organisations to require a funding contribution from Auckland Council.  All three pieces of legislation were put in place before the 2010 amalgamation to Auckland Council, with the primary purpose of ensuring that all former councils in the region contributed equitably to these regional amenities. 

3.       The statutory context and processes are set out in more detail in the report.  It is noted that each of the systems have distinct differences, and they cannot be directly compared with each other.

Funding requests for 2021/2022

4.       The Auckland Regional Amenities Funding Board (funding board) is seeking $15,435,500. This represents an overall increase of $755,000, or 5 per cent compared to 2020/2021.  The majority of the increase ($490,000) is directed to the Auckland Philharmonia to assist it with delivering its renewed operational model for paying its players. 

5.       The levy is around 41 per cent of the total possible levy (which is a maximum of 2 per cent of council’s rates income), indicating the restrained approach the funding board adopts when considering the amenities’ requests. 

6.       Staff recommend the approval of the levy as it is in accordance with the funding principles in the ARAFA Act, as were the processes followed by the funding board to reach its proposed funding plan. 

7.       MOTAT is seeking $15,635,107. While this is an increase of $744,529 or 5 per cent, this still means that MOTAT’s levy will be below what it received from council in 2019/2020. This is because in response to Covid-19, MOTAT offered a reduction in its levy of almost $1m (around 6 per cent of its budget).

8.       Staff recommend approval of MOTAT’s levy increase as it is in accordance with the provisions of the MOTAT Act, and because it will assist MOTAT with its recovery from Covid-19.

9.       Auckland Museum is seeking $32,292,000, which staff recommend is approved. This is a nil increase from the 2020/21 and 2019/20 financial years. 


 

 

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

Auckland Regional Amenities Funding Act

a)      approve the Auckland Regional Amenities Funding Board’s proposed council funding contribution for 2021/2022 of $15,435,500.

Museum of Transport and Technology

b)      approve the Museum of Transport and Technology Annual Plan 2021/2022, including the total funding contribution applied for 2021/2022 of $15,635,107

c)       note that last year the Museum of Transport and Technology responded to council’s request to moderate increases due to Covid-19 by reducing its request for funding in 2020/2021, and that its 2021/2022 funding request remains below the level of council funding provided in 2019/2020

Auckland War Memorial Museum

d)      approve Auckland War Memorial Museum’s levy request for 2021/2022 of $32,292,000.

e)      note that last year Auckland War Memorial Museum responded to council’s request in 2020/2021 to moderate its funding request due to Covid-19 by holding its funding request at the same level as 2019/2020. 

f)       note that there are ongoing discussions with Auckland War Memorial Museum about its future outlook for levy increases and about its long-term governance and legislative arrangements.

Horopaki

Context

Legislative framework – Auckland Regional Amenities Funding Act 2008

10.     The ARAFA was put in place in 2008 as a mechanism to provide adequate, sustainable and secure funding for ten specified amenities, given the difficulties of securing funding from the multiple councils that existed prior to 2010 amalgamation.  Obligations under the ARAFA were transferred to Auckland Council following its formation in 2010.

11.     The ARAFA established a funding board, which is an independent body whose role is to receive annual funding applications from the specified amenities identified in the act.  One of the helpful aspects of the ARAFA (compared to the two museum acts) is that it includes clear funding principles against which to assess funding applications. These can include principles added by Auckland Council, such as that applications must be able to demonstrate how they deliver on the Auckland Plan.  The other funding principles include that:

·        funding is primarily for provision of facilities or services by the amenities (i.e. operational spending), and is not available for capital expenses

·        funding is not for any part of facilities or services provided outside the Auckland region

·        funding is available only if the amenity has made all reasonable endeavours to maximise their funding from other available sources

·        the funding board must have regard to council’s proposed rates increase for the forthcoming year.


 

12.     Once the funding board has conducted the analysis of the amenities’ funding applications, it is required under the ARAFA to prepare a funding plan. The funding board must then call for public submissions. Council may provide a submission on the funding plan, as may the amenities themselves. The funding board must consider the submissions received when preparing the final funding plan.

13.     The funding board, having considered any submissions, then proposes a total levy to the council for approval. 

14.     The council’s decision-making role regarding the levy is confined to either agreeing to or rejecting the proposed levy.  Allocations to individual amenities are the role of the funding board, not council.  While the ARAFA requires that the funding plan must provide any information that is necessary for council to make an informed assessment of the annual levy (section 25(2)(i)), council is not able to comment on the amount of the funding being provided to the individual amenities, as it is the role of the funding board to analyse the funding requirements of each amenity.

15.     The current amenities which receive funding are:

·    Auckland Festival Trust

·    Auckland Philharmonia Trust

·    Auckland Rescue Helicopter Trust

·    Auckland Theatre Company Ltd

·    Drowning Prevention Auckland – Watersafe Auckland Incorporated

·    New Zealand Opera Limited

·    Stardome – Auckland Observatory and Planetarium Trust Board

·    Surf Live Saving Northern Region Inc.

Legislative framework – Museum of Transport and Technology Act 2000

16.     MOTAT operates under the Museum of Transport and Technology Act 2000. This act requires the board to maintain, manage, and develop MOTAT and its collections and provide for the recording and presentation of the history of transport and technology in Auckland and New Zealand.

17.     Council is obliged to fund MOTAT under the levy provisions of the act. These provisions were originally developed in the pre-amalgamation context to ensure that all councils in the Auckland region contributed equitably to MOTAT.

18.     Auckland Unlimited has inherited the day-to-day relationship with MOTAT which previously was held by Regional Facilities Auckland.  Auckland Unlimited’s role is established by an ‘Advisory and Management Agreement’ with council under which it has been appointed adviser to council for MOTAT’s annual funding process. 

19.     In this role, Auckland Unlimited maintains close liaison with MOTAT, analyses its plans and provides feedback on behalf of Auckland Council, and provides a formal submission on behalf of council when the MOTAT draft Annual Plan is issued for consultation.  Auckland Unlimited has written to Auckland Council and recommends approval of the plan and the levy amount proposed. Auckland Unlimited’s advice, as expressed in the submission and the letter to council has been incorporated into this report (Attachment C). 

Legislative framework and current context – Auckland Museum

20.     Auckland War Memorial Museum operates under the Auckland War Memorial Museum Act 1996.  It requires the board to maintain, manage and develop the museum according to the objectives set out in the act. The practice which has developed is for both operational and capital funding (by way of a depreciation amount) to be funded. 

 

 

21.     By way of guidance on the level of funding for Auckland Museum, this act states, when it describes the test an arbitrator would be required to apply, that council’s contribution is intended to ensure the board can meet its minimum obligations under the act.  It does not give the museum the ability to require from council what it feels might be required to achieve an ideal state of operation.  To achieve an ideal state, the act intends that the museum supplement its income with compatible revenue raising activity.  This is consistent with the museum’s status as an independent organisation.

22.     In previous years, council received advice on the museum’s planning and funding request from Regional Facilities Auckland, as it does with MOTAT. However, in 2020 Auckland Council resolved to:

·    “explore with the Auckland War Memorial Museum and MOTAT bringing both institutions into [Auckland Unlimited] and seeks such legislative change as is necessary” (GB/2020/89/k) and

·    “establish a PACE Committee-led team consisting of the Chair, the Mayor or the Deputy Mayor, Councillor D Simpson and the Independent Maori Statutory Board Chair, or his alternative, to undertake discussions with Auckland Museum on a Rangatira tu rangatira basis” (PAC/2020/43/g).

23.     The intention of these resolutions was to elevate the discussion to a governance level. This leaves Auckland Unlimited the role of developing a vision for delivering cultural and economic development in Auckland, while council ensures that the structures to support achieving that vision are in place. 

24.     The first Rangatira group meeting took place in October 2020 and was followed by an exchange of correspondence by the Mayor of Auckland and the Chair of Auckland Museum.  This correspondence confirmed the key purposes of this process, namely, to achieve:

·    “a more robust system for working together and more accountability…the Museum’s Annual Plan and funding should be mutually agreed, as is the case with all other council funded organisations.” (Mayor’s letter, 1 December 2020)

·    “a wider protocol for Council-Museum engagement, of which annual plan development is a part…to be in place in time for the development of the Museum’s FY22/23 annual plan.” (Chair’s letter, 23 December 2020).

25.     The 2021/2022 annual plan process has therefore taken place under the standard process of engagement between the museum and council, while a protocol for next year’s engagement and discussions about legislative change take place. 

Tātaritanga me ngā tohutohu

Analysis and advice

26.     The fundamental test for all three funding systems is whether the requests made by the organisations are in accordance with the legislation under which they are allowed for.

ARAFA

27.     The final 2021/2022 funding plan proposes a total levy of $15,435,500 (Attachment A).  This represents an overall increase of $755,000, or 5 per cent compared to 2020/2021.  The levy is around 41 per cent of the total possible levy (which is a maximum of 2 per cent of council’s rates income), indicating the restrained approach the funding board adopts when considering the amenities’ requests. 

28.     The proposed levy is within the levy cap provided for by legislation.

 

29.     Auckland Council made a submission on the funding plan in January 2021, and the issues it raised remain relevant to the final draft funding plan.  It noted council’s concern about the indicative requests signalled by the amenities for the 2022/2023 and 2023/2024 financial years. The indicative total request for 2022/2023 is $18,359,979, which would represent an increase of 19 per cent on the current proposed levy.  The submission noted that council is unable to consider any significant increases in funding for the foreseeable future, given the significant constraints to Auckland Council’s budget due to the ongoing impacts of the COVID-19 pandemic.  However, we note that typically the funding board takes a careful approach with the amenities, and previously the level of funding proposed by the funding board is less than that sought by the amenities. 

30.     In line with the council’s role in the ARAFA levy process, the following options are outlined below.

a.      The first option is to approve the levy.  Staff have no reason to believe that the proposed levy is contrary to the funding principles contained in the ARAFA, and therefore there is no reason for council to not approve the levy. 

b.      The second option is to reject the proposed levy.  The act only gives council the ability to reject the entire levy, even if it only disagrees with a part of it.  Rejecting the levy is not recommended, as the allocations appear to satisfy the criteria in the act. 

31.     It is therefore recommended that the levy is approved. This will reinforce council’s ongoing commitment and long-term support for the work, services and programmes that each amenity provides to Aucklanders across the region.  Nonetheless, it is important that each amenity continues to be aware that it is ratepayer-funded and that this funding is intended as 'funding of last resort'

MOTAT

32.     MOTAT’s levy request is for $15,635,107 (Attachment B). This is an increase of $744,529 from last year’s $14.9 million, but still remains below the levy in 2019/2020 of $15.8 million.  It is important to put MOTAT’s request in the context of its response to the Covid-19 pandemic last year and also to the 2020 CCO and Cultural Heritage Institution Review.

33.     Alone among the three organisations considered here, MOTAT actually reduced its request from council to assist with the Covid-related budget issues council was facing. Between March and April 2020, MOTAT revised its planned activities, capital programme and levy request to reflect the financial pressures which it was clear were going to be faced by council.  In doing this, MOTAT demonstrated a collaborative approach, despite the ageing nature of its buildings and facilities, and the challenges it was facing.

34.     In addition, MOTAT played a highly constructive role in council’s cultural heritage institution review process.  It continues to engage closely with Auckland Unlimited about its future arrangements, in line with council resolutions on the cultural heritage and CCO reviews.  MOTAT and the Western Springs area remains one of the biggest areas of opportunity for council in terms of delivering new experiences through its cultural heritage institutions.  In the last year, MOTAT has also agreed to undertake other activities to assist council’s programmes, such as operating the waterfront tram in support of the America’s Cup experience. 

35.     Despite not being the biggest institution in the city, MOTAT played the role of sector leader during the various steps up and down the alert levels during 2020.  It had a clear operating plan for each alert level, which it shared for use not only with other Auckland institutions, but nationwide, and was well-received as an example of generous sector leadership by less well-resourced museums around the country. 


 

36.     MOTAT has also been undertaking discussions with Auckland Unlimited about its future relationship to the council group. This is consistent with council’s endorsement of the CCO review recommendation to investigate legislative change for MOTAT.  It is well-recognised that this process needs to be one that is mutually agreed between council and MOTAT, given the status of the legislation as a private act.  Nonetheless, we understand that the discussions are proceeding well and MOTAT is approaching them with an open-minded view about the opportunities to deliver exciting outcomes for Auckland in concert with council, Auckland Unlimited, and other strategic partners, whether within the museum sector or beyond. 

37.     It is recommended that council continue to support the maintenance and development of MOTAT as set out in their draft annual plan. Auckland Unlimited has done the detailed analysis of the plan and is supportive of it. Auckland Unlimited’s letter in support of MOTAT’s annual plan is attached for information (Attachment C).

38.     Staff recommend that MOTAT’s draft annual plan and levy be agreed.  The other alternative is to reject the levy.  This is not recommended, because the request is clearly aligned with the purposes in the act and does not exceed a level beyond the board meeting its minimum obligations. 

Auckland Museum

39.     The museum’s draft Annual Plan 2021/2022 is in accordance with the purposes of the museum in the Auckland War Memorial Museum Act, and a levy request of $32,292,000, representing no increase from the current financial year, or from the 2019/2020 financial year (Attachment D).  This is welcome and it is recommended that the committee approve this funding contribution to the museum.

40.     The alternative is not to approve the funding. This is not recommended at this time, as the request for 2021/2022 appears to meet the provisions of the legislation.

41.     However, the museum has indicated that it will require funding increases from council from 2022/2023.  The draft annual plan indicates that the museum is budgeting for $9,150,000 in earnt revenue in 2021/2022, which is significantly more than the current year, and similar to 2019/2020. Earnt income is predicted to rise again in both of the next two financial years.  If achieved, this will be consistent with the intention of the museum to boost its supplemental (non-council) income through the largely council-funded refurbishment that has taken place.

42.     Therefore, discussions will be ongoing with the museum executive and board through the Rangatira process about whether further levy rises can be justified under the terms of the museum’s legislation, and whether it should seek to adjust its programme rather than seek ongoing increases from council.

Tauākī whakaaweawe āhuarangi

Climate impact statement

43.     The Auckland Regional Amenities Funding Board, as part of its deliberations to ensure the amenities’ plans align with the Auckland Plan, has considered the impact of the amenities’ programmes in relation to climate change.  The funding plan includes particular reference to this in relation to the Auckland Arts Festival and Stardome.

44.     MOTAT is a statutorily independent organisation and council is unable to direct it on climate change issues. However, Auckland Unlimited regularly discusses how MOTAT is responding to climate change and this is covered in its advice letter to council which is attached to this report.

45.     Auckland Museum is a statutorily independent organisation and council is unable to direct the museum on climate change issues.  Auckland Museum notes that their Environment and Human Impact Gallery will start to take shape in the coming year.  This gallery is intended to support Aucklanders’ engagement with the issue of climate change, both globally and locally. 

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

46.     Auckland Unlimited is part of the staff engagement group established as part of the Rangatira process.  Auckland Unlimited continues to make a significant contribution in the relationship with Auckland Museum. 

47.     As noted above, Auckland Unlimited also has a close relationship with MOTAT, and is discussing how the two organisations can undertake long-term planning and delivery of concepts for the Western Springs area.  This has long been identified as one of the key opportunity areas for delivery of cultural outcomes in Auckland. 

48.     The view of the CCO review is worth reiterating here, namely that for Auckland Unlimited to be successful, structural and legislative changes are necessary to achieve a cultural heritage sector that in future will work collaboratively together to achieve common – rather than self-determined – goals. 

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

Local impacts and local board views

49.     The relationship with Auckland Museum, MOTAT and the Auckland Regional Amenities Funding Board is a regional one, and as such decisions about funding contributions are made by governing body or its committees.

Tauākī whakaaweawe Māori

Māori impact statement

50.     Auckland Museum is a statutorily independent organisation.  One of the museum board’s legislative duties is to “observe and encourage the spirit of partnership and goodwill envisaged by the Treaty of Waitangi, the implications of mana Māori and elements in the care of Māori cultural property which only Māori can ,provide”.  It is not possible for council to direct the museum on issues relating to Māori or assess its performance in this regard. 

51.     We note that the Museum Act allows for a Taumata-a-iwi to work with the board as its Māori advisory committee. This provides a limited form of mana whenua involvement, and it is acknowledged that this is an important element of the museum’s governance. Conversations about how to enhance a mana whenua governance role, perhaps in addition to the role of the Taumata, would be a valuable part of discussions regarding any changes to governance arrangements. 

52.     MOTAT is a statutorily independent organisation.  Unlike the museum, MOTAT’s legislation does include a requirement in its objectives as an organisation to “biculturalism and the spirit of partnership and goodwill envisaged by the Treaty of Waitangi”.  Its board has the identical duty as above for Auckland Museum in respect of ‘observing and encouraging the spirit of partnership’. It is not possible for council to direct MOTAT on issues relating to Māori, or assess its performance in this regard.  Again, consideration could be given as to how to enhance the role of mana whenua in governance of MOTAT.

53.     For ARAFA, the amenities have to demonstrate the alignment of their activities to the Auckland Plan, including the priorities in that plan that relate to Māori.  Therefore, Māori wellbeing and perspectives are criteria for consideration throughout the funding board discussion at meetings.

54.     One funding board member is appointed to represent the interests of Māori in the Auckland region.

Ngā ritenga ā-pūtea

Financial implications

55.     The combined amount requested by the Auckland Regional Amenities Funding Board, MOTAT and Auckland Museum is within the current operational budget proposed in the draft Long-term Plan. No additional funding is requested.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

56.     There are two ongoing risks from the three systems discussed in this report:

·    Lack of ability to influence the entities to ensure that their activities contribute to the outcomes in the Auckland Plan and other strategies of Auckland Council (such as Toi Whitiki in the case of arts and culture organisations). This has effectively blocked much of council’s ability to deliver on the Toi Whitiki strategy. 

·    Lack of ability to control the amounts which are requested. In all three cases, there is significant exposure represented by the current caps on the levies – approximately $35 million for ARAFA, $25 million for MOTAT, and $151 million for Auckland Museum.  If there were significant unplanned increases in the level of funding provided under these systems, it would lead to council having to reduce funding in other areas or increase rates. 

57.     These risks are mitigated in different ways for each entity.  For ARAFA, the legislation has relatively clear funding principles against which the funding board must assess applications.  Council can add to funding principles and has done so to ensure the Auckland Plan is a factor in decision-making.  Furthermore, over many years the board has maintained a healthy relationship with council with very positive communication.  This allows the wider context of council priorities and affordability to be taken account of, within the primary responsibilities of the board to meet its obligations under the act. Council could consider adding additional funding principles. 

58.     MOTAT presents the lowest financial risk to council, as its legislation allows for the least amount of funding.  However, this presents other risk, such as the amount of funding MOTAT has available to maintain and develop its buildings and infrastructure.  These risks are partially mitigated by MOTAT’s positive relationship with Auckland Unlimited, which means that it is taking a long-term view of its development as an institution, and this includes a focus on building trust with the council group. Requests for additional funding – such as for occasional capital works – are made carefully and in full consultation with Auckland Unlimited advisers.

59.     Auckland Museum represents the greatest ongoing financial risk for council, due to the amount of funding allowed by the legislation (currently $151 million per annum). The key mitigation to significant funding increases is strong engagement through the development of Auckland Museum’s annual plan.  The current Rangatira to Rangatira process will look at how to enhance this engagement. 

Ngā koringa ā-muri

Next steps

60.     If agreed, the levies will be paid within the appropriate statutory timeframes.


 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

ARAFA draft Funding Plan 2021/22 (excerpts)

25

b

MOTAT draft Annual Plan 2021/22 (excerpts)

35

c

Auckland Unlimited advice to Auckland Council re MOTAT draft Annual Plan 2021/22 (8 March 2021)

39

d

Auckland Museum draft Annual Plan 2021/22 (excerpts)

45

     

Ngā kaihaina

Signatories

Author

Edward Siddle - Principal Advisor

Authorisers

Alastair Cameron - Manager - CCO Governance & External Partnerships

Phil Wilson - Governance Director

Peter Gudsell - Group Chief Financial Officer

 


Finance and Performance Committee

22 April 2021

 

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22 April 2021

 

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22 April 2021

 

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Finance and Performance Committee

22 April 2021

 

Emergency Budget 2020/2021 - Update April 2021

File No.: CP2021/02980

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To provide the committee with financial update information since the Emergency Budget was adopted. This update is as at the end of March 2021.

Whakarāpopototanga matua

Executive summary

2.       The Emergency Budget 2020/2021 was adopted by the Governing Body on 30 July 2020.

3.       The final budget included a projected reduction in cash operating revenue of around $450 million for 2020/2021 as a result of COVID-19 and a range of measures such as reductions in operating expenditure, temporarily elevated debt levels, capital expenditure deferrals, and asset recycling to mitigate the impact of this revenue shortfall as well as the unprecedented drought situation.

4.       As the COVID-19 situation is still evolving, its financial impacts on council remain uncertain. Finance staff will monitor the progress for 2020/2021, including the financial performance of Auckland Council and its CCOs, and progress on other key mitigations to ensure the group can respond to any material changes to the Emergency Budget. Staff will report on progress to the Finance and Performance Committee on a monthly basis.

5.       This month includes an update on progress for 2020/2021 against the Emergency Budget.

Progress for 2020/2021 against the Emergency Budget

6.       A verbal update on the group financial performance for March 2021, accompanied by a performance dashboard, will be provided at the meeting.

7.       Auckland Council continued to make progress towards the $120 million savings. A further $12 million of cost reductions have been achieved since February 2021, keeping progress on track and bringing the total achieved savings to $119 million or 99 per cent.

 

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a)      receive the update on progress for financial year 2020/2021.

b)      note that Auckland Council has achieved $119 million towards the $120 million council organisation savings target.

 

Horopaki

Context

8.       The Emergency Budget 2020/2021 was adopted by the Governing Body on 30 July 2020.

9.       The financial implications of COVID-19 were highly uncertain at the time when the Emergency Budget was prepared. Therefore, the adopted budget was developed based on a set of forecasting assumptions for a “most likely scenario”. Key assumptions included government decisions on alert levels and the economic outlook.


 

10.     The final budget included a projected reduction in cash operating revenue of around $450 million for 2020/2021 as a result of COVID-19 and a range of measures were implemented including reductions in discretionary expenditure, temporarily elevated debt levels, capital expenditure deferrals, temporary reductions in operating service levels and asset recycling to mitigate the impact of this revenue shortfall as well as the unprecedented drought situation.

11.     As the COVID-19 situation is still evolving, its financial impacts on council remain uncertain. Staff will continue to monitor the financial performance of the council and its CCOs to ensure the group can respond to any material variations from the Emergency Budget. Staff will report on progress to the Finance and Performance Committee on a monthly basis.

Tātaritanga me ngā tohutohu

Analysis and advice

Progress for 2020/2021 against the Emergency Budget

Financial performance (March)

12.     A verbal update on the group financial performance for March 2021, accompanied by a performance dashboard, will be provided at the meeting.

Savings progress for Auckland Council

13.     The Emergency Budget included group savings and cost reductions of over $200 million compared to the group budget submitted in March 2019. The progress towards the target for Auckland Council of $120 million is reported monthly. Progress of the CCOs towards their savings targets will be reported through the quarterly performance reporting to the CCO Oversight Committee.

14.     At the end of March, Auckland Council has achieved $119 million (99 per cent) towards the $120 million savings target, an increase of $12 million from February 2021. Cost reduction amounts reflect the reduction in the annual budget as a result of the initiative. Savings to note in the month include:

·    $10.1 million one-off savings due to expenditure below budget for the financial year to date, including the following:

Travel costs are well below the budgeted amount and have allowed for savings in addition to the 50 per cent reduction made at the start of the year.

Professional services costs are also lower than budgeted as work has either been performed in-house or been delayed for various reasons.

Staff costs are below budget due to the effects of recruitment controls, longer than normal time to hire and difficulties in filling some roles due to competition for certain skill sets. This means roles remain vacant and therefore budget is not spent.

Utilities charges underspend due to correction of previous billing errors by the service provider.


 

·       $1.3 million savings in corporate property costs due to the progress of the Worksmart programme where some offices are now either vacant or have been sold. For example, the Pukekohe offices are now vacant and Bledisloe House is only partially occupied.

·       $0.8 million further savings from the completion of Healthy Water’s in-sourcing expertise and work programme reprioritisation, bringing the total achieved operating cost savings in 2020/2021 from this initiative to $2.2 million. Capital expenditure savings were also achieved.

Tauākī whakaaweawe āhuarangi

Climate impact statement

15.     Updates on the financial progress for 2020/2021 provided in this report do not have any direct impact on climate change. However, close monitoring and providing visibility to this committee enables continued prudent financial management of the Auckland Council Group. Achieving efficiency savings and maximising financial benefits will assist in freeing up resources for applying to the council’s strategic priorities such as climate change. 

16.     There is no additional climate impact in relation to the other updates in this report.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

17.     Progress against the Emergency Budget is closely monitored across the entire council group, based on performance information provided by the council and respective CCO finance teams.

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

Local impacts and local board views

18.     Local board views and preferences were taken into account during the Emergency Budget process. The monitoring of progress against the Emergency Budget includes local board budgets.

19.     There is no specific impact on local communities from the updates provided in this report.

Tauākī whakaaweawe Māori

Māori impact statement

20.     This budget update report is for information only and therefore does not have direct impact on Māori.

21.     Auckland Council has obligations under Te Tiriti o Waitangi and the Significance and Engagement Policy to take special consideration when engaging with Māori to enable Māori participation in council decision making to promote Māori well-being. The Emergency Budget public consultation engagement programme included:

·     Raising awareness of the opportunity to give feedback through the current Māori database

·     Targeted Māori community engagement through partners, covering our high population areas and regionwide, supporting feedback through online and hard copy submission forms

·     Live discussions and questions and answers with elected members and subject matter experts through Radio Waatea, with a focus on high population areas in the West and South and including the opportunity for audience and online feedback direct to decision-makers

·     Māori-focused social media campaign.

22.     Feedback was collated as part of the Emergency Budget process and presented by iwi to the Governing Body on 17 June 2020 and subsequently presented to councillors as part of the main feedback report for their consideration at the Finance and Performance Committee on 8 July 2020.

23.     Future agenda items may have implications for Māori and the Emergency Budget identified relevant Maori outcomes which will be addressed in the respective reports.

Ngā ritenga ā-pūtea

Financial implications

24.     Staff will continue to advise the committee on any resultant budget changes required to stay within the overall key financial parameters set for the Emergency Budget as the remainder of the financial year progresses.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

25.     As the financial year progresses and the COVID-19 situation develops, there is a risk of further impacts on the council’s financial projections. This will require close monitoring to ensure council is able to best respond to these changes.

Ngā koringa ā-muri

Next steps

26.     Finance staff will continue to monitor the financial performance and projections and update this committee when there are further developments.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.     

Ngā kaihaina

Signatories

Authors

Tracy Xu - Senior Analyst

Susan Jiang Su - Financial Analyst

Pramod Nair - Head of Group Financial Planning

Authorisers

Ross Tucker - General Manager, Financial Strategy and Planning

Peter Gudsell - Group Chief Financial Officer

 


Finance and Performance Committee

22 April 2021

 

Accommodation Provider Targeted Rate Suspension (Covering report)

File No.: CP2021/04280

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To consider whether to extend the reduction in spending on visitor attraction and major events and the suspension of the Accommodation Provider Targeted Rate and include any changes in the Recovery Budget 2021-2031.

Whakarāpopototanga matua

Executive summary

2.       This is a late covering report for the above item. The comprehensive agenda report was not available when the agenda went to print and will be provided prior to the 22 April 2021 Finance and Performance Committee meeting.

Ngā tūtohunga

Recommendation/s

The recommendations will be provided in the comprehensive agenda report.


Finance and Performance Committee

22 April 2021

 

Summary of Finance and Performance Committee information memoranda and briefings, including the Forward Work Programme - 22 April 2021

File No.: CP2021/03354

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To note progress on the 2021 forward work programme appended as Attachment A.

2.       To receive a summary and provide a public record of workshops, 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

26/3/2021

Memorandum from General Manager Financial Strategy and Planning and Manager Financial Policy - Accommodation Provider Targeted Rate invoicing – Attachment B

14/4/2021

Memorandum from Claire Siddens, Principal Advisor Business Improvement District Programmes (BIDs) - Planned review of the Business Improvement District (BID) Policy (2016) and Operating Standards – Attachment C

5.       The following workshops/briefings have taken place:

Date

Workshop/Briefing

10/3/2021

Finance and Performance Committee Workshop – 10-year Budget 2021-2031 (Regional Stakeholder session) – Attachment D

 

6.          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’.

7.       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)      receive the progress on the 2021 forward work programme as appended in Attachment A of the agenda report.

b)      receive the Summary of Finance and Performance Committee information memorandum and briefings as at 22 April 2021.

 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Finance and Performance Committee Foward Work Programme

59

b

Memorandum - Accommodation Provider Targeted Rate invoicing - 26 March 2020 (Under Separate Cover)

 

c

Finance and Performance Committee Workshop – 10-year Budget 2021-2031 (Regional Stakeholder session) - 10 March 2021 (Under Separate Cover)

 

d

Memorandum from - Planned review of the Business Improvement District (BID) Policy (2016) and Operating Standards (Under Separate Cover)

 

     

Ngā kaihaina

Signatories

Author

Sandra Gordon - Kaitohutohu Mana Whakahaere Matua / Senior Governance Advisor

Authoriser

Peter Gudsell - Group Chief Financial Officer

 


Finance and Performance Committee

22 April 2021

 

 

Te Komiti ā-Pūtea, ā-Mahi Hoki/Finance and Performance Committee
Forward Work Programme 2021/22

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

 

Area of work and Lead Department

Reason for work

Committee role

(decision and/or direction)

Expected timeframes

2021

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Planning and funding

10-year Budget (Long Term Plan)

2021-2031

General Manager Financial Strategy and Planning

Statutory Process

Hold workshops regarding process/content/policies

Decision to agree Mayoral Proposal (9 Dec 2020)

Recommend consultation document to consult with public (Feb 2020)

Adopt consultation document to consult with public (18 Feb 2020) (Governing Body)

Consultation period – 22 February 2021 – 22 March 2021

Hear feedback and deliberate budget scenarios (Apr/May 2021)

Decisions made for Long-Term Plan (25 May 2021)

Recommend final Long-Term Plan (25 May 2021)

Adopt final Emergency Budget (Governing Body) (29 June 2021)

 

Progress to date:

Workshops held (26 August 2020, 9 September 2020, 16 September 2020, 23 September 2020, 14 October 2020, 21 October 2020, 28 October 2020, 4 November 2020, 11 November 2020, 18 November 2020, 25 November 2020 and 2 December 2020)

10-year Budget 2021-2031 – Process overview – Link to decision

10-year Budget 2021-2031 – 10-Year Budget 2021-2031 - Adoption of the Draft Tūpuna Maunga o Tāmaki Makaurau Operational Plan 2021/2022 and summary – Link to decision  Link to governing body decision

10-year Budget 2021-2031: regional topics for consultation - local board input– Link to decision

10-year Budget 2021-2031 - Mayoral Proposal items for consultation – Link to decision  Link to governing body decision

10-year Budget 2021-2031 - Other matters for consultation – Link to decision  – Link to Governing Body decision

Changes to the Urban Rating Area and Rating of Farm and Lifestyle Properties within the Urban Rating Area – Link to decision  Link to Governing Body decision

 

Other Rates and Fees Issues for 10-Year Budget 2021-2031 – Link to decision  Link to Governing Body decision

Upper Harbour Local Board Transport Targeted Rate for consultation  - Link to decision  Item withdrawn at Governing Body meeting, 17 December 2020.

Paremoremo Public Transport Targeted Rate – Link to decision  Link to Governing Body decision

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

10-year Recovery Budget 2021-2031: Adoption of consultation material - Link to decision  Link to Governing Body decision

10-year Recovery Budget 2021-2031 Communications and Engagement Plan - Link to decision  Link to Governing Body decision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annual Budget

(2022/2023)

General Manager Financial Strategy and Planning

Statutory Process

Hold workshops regarding process/content/policies

Decision to agree Mayoral Proposal (Dec 2021)

Recommend consultation document to consult with public (Feb 2022)

Adopt consultation document to consult with public (Feb 2022) (Governing Body)

Consultation period – To be confirmed

Hear feedback and deliberate budget scenarios (Apr/May 2022)

Decisions made for Long-Term Plan (May 2022)

Recommend final Long-Term Plan (June 2022)

Adopt final Emergency Budget (Governing Body) (June 2022)

 

Progress to date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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) (Feb)

Receive annual report (16 Sept - extraordinary)

Recommend adoption of annual report to Governing Body (16 Sept - extraordinary)

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:

Auckland Council Group and Auckland Council quarterly performance report for the 6 months to 31 December 2020 – Link to decision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial and Budget Updates

General Manager Financial Strategy and Planning

Financial Management

Receive updates and make decisions on any recommended budget changes outside of the Annual Budget/Long-term Plan, as required

Note:   This includes significant unbudgeted one-off expenditure.

 

Progress to date:

Emergency Budget 2020/2021 - Update February 2021 (considered in confidential; restatements only released to the open record) – Link to decision

Emergency Budget 2020/2021 - Update March 2021 – Link to decision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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:

Q Theatre loan and funding (considered in confidential, resolutions released to the open record) – Link to decision

Presentation from Eden Park Trust Board – Link to decision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reporting and performance

Performance reporting quarterly – parent

General Manager Financial and Business Performance

Financial management

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

Q2 (Mar), Q3 (May), Q4 (16 Sept - Extraordinary), Q1 (Dec)

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 quarterly performance report for the 6 months to 31 December 2020 – Link to decision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance reporting quarterly – group

General Manager Financial Strategy and Planning

Financial management

Monitor Auckland Council group financial requirements on a quarterly basis.

Q2 (Mar), Q3 (May), Q4 (16 Sept - Extraordinary), Q1 (Dec)

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 quarterly performance report for the 6 months to 31 December 2020 – Link to decision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

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

 

Progress to date:

Recommendation from Parks, Arts, Community and Events Committee, 10 December 2020 - Proposed exchange of reserve land at Watchfield Close and Mayflower Park - Māngere East and West – Link to decision

 

 

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

Properties are also identified for disposal via the Emergency Budget 2020/2021 asset recycling process.

Progress to date:

Memorandum – Emergency Budget 2021/2021 – Asset Recycling – Reserve Revocation – 23 February 2021 – Link to memorandum

 

 

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 (Mar); Museum of Transport and Technology (Apr); and Auckland War Memorial Museum (Apr)

Receive presentations from amenities via memorandum (Jun)

 

Progress to date:

Approval of the Auckland Regional Amenities Funding Levy – Link to decision (note this report was deferred until 22 April 2021).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance Strategy and Placement

GM Risk and Assurance

 

Approve the council group insurance strategy 2021-2023

Approve the annual insurance placement for Council Group 2021/2022

 

Progress to date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Review of Policies

 

Approve council policies:

·    Business Improvement District Policy

·    Development Contribution Policy

·    Group Procurement Policy

·    Revenue and Financing Policy (through the 10-year Budget process)

·    Significance and Engagement Policy

·    Treasury Management Policy

 

Progress to date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Review of committee forward work programme

Governance

Regular reporting

Receive updates (bi-monthly)

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

 

Progress to date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Updated: 15 April 2021

 


Finance and Performance Committee

22 April 2021

 

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       CONFIDENTIAL: Reallocation of existing budget to acquire cemetery land in the 10-Year Budget 2021-2031 - Long-term Plan

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.

s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

In particular, the report contains financial information that may prejudice the council's negotiations.

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.