Agenda of Finance and Performance Committee

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.

1 Apologies

At the close of the agenda no apologies had 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, 22 April 2021, including the confidential section, 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.

5.1 Public Input - Te Atatū Investments - Proposed disposal of land at Te Atatū Peninsula

Te take mō te pūrongo

Purpose of the report

1. For public input from Te Atatū Investments representatives Helen Moore and Tania Billingsley to the Finance and Performance Committee regarding a proposed disposal of land at Te Atatū Peninsula.

Whakarāpopototanga matua

Executive summary

2. Tania Billingsley, a representative of Te Atatū Investments wishes to address the committee on behalf of Helen Moore regarding a proposed disposal of land at Te Atatū Peninsula.

3. Also present to answer questions will be Michael Campbell, town planner; Leo Hills, traffic engineer; and Richard Knott, urban designer.

4. Background information has been appended to this report.

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a) receive and thank Tania Billingsley, Te Atatū Investments, for her presentation on behalf of Helen Moore, regarding a proposed disposal of land at Te Atatū Peninsula.

Attachments

a proposed disposal of land at Te Atatū Peninsula.- Background.................. 103

5.2 Public Input - Matua Hakiaha - Proposed disposal of land at Te Atatū Peninsula

Te take mō te pūrongo

Purpose of the report

1. For public input from Matua Hakiaha to the Finance and Performance Committee regarding a proposed disposal of land at Te Atatū Peninsula.

Whakarāpopototanga matua

Executive summary

2. Matua Hakiaha, a resident of Atatū Peninsula wishes to address the committee regarding a proposed disposal of land at Te Atatū Peninsula.

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a) receive and thank Matua Hakiaha for his presentation regarding a proposed disposal of land at Te Atatū Peninsula.

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

20 May 2021

Disposal Recommendation Report - part of 16 Amersham Way, Manukau

File No.: CP2021/05263

Te take mō te pūrongo

Purpose of the report

1. To seek approval for Eke Panuku Development Auckland (Eke Panuku) to dispose of a council-owned property in the Ōtara-Papatoetoe Local Board area.

Whakarāpopototanga matua

Executive summary

2. Eke Panuku is preparing Kotuku House – 4 Osterley Way, Manukau for disposal on behalf of the Corporate Property team. The Finance and Performance Committee approved Kotuku House for disposal on 15 May 2018 (FIN/2018/73).

3. This property has no legal access. At the same time, the portion of Osterley Way in front of Kotuku House is not legal road and still forms part of 16 Amersham Way (Manukau Plaza).

4. The creation of the legal road in front of Kotuku House will create a parcel of land separate from the rest of Manukau Plaza.

5. Eke Panuku proposes to dispose of the new land parcel together with Kotuku House, which will give the property legal access and also unlock additional development potential. The proceeds of the sale of the parcel are to be reinvested in the Transform Manukau area.

6. A resolution approving the disposal of the subject portion of Osterley Way is required from the Finance and Performance Committee before the proposed divestment can be progressed.

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a) approve subject to the satisfactory conclusion of any required statutory processes the disposal of the property at 16 Amersham Way, Manukau, being a parcel of approximately 650 m² in front of Kotuku House that is being created by the legalisation of Osterley Way, and

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

Horopaki

Context

7. The council has committed to prioritising urban redevelopment in a number of priority locations across Auckland through the Transform and Unlock framework. Eke Panuku has a mandate from the council to facilitate urban redevelopment and place-making activities across the council group in these locations, and to achieve a balance between strategic and financial outcomes.

8. Asset recycling within the priority locations will make a significant contribution to urban regeneration via the reinvestment of the proceeds of asset sales in the Transform and Unlock locations to fund the approved Transform and Unlock work programme.

Tātaritanga me ngā tohutohu

Analysis and advice

9. Eke Panuku is currently preparing 4 Osterley Way, Manukau (Kotuku House) for disposal on behalf of the Corporate Property team. The Finance and Performance Committee approved Kotuku House for disposal on 15 May 2018 (FIN/2018/73).

10. Kotuku House adjoins Manukau Plaza (16 Amersham Way), and does not have any road frontage, and therefore has no legal access. The property is landlocked, which is not an issue while Auckland Council owns it and all the adjoining properties, but it is a major impediment to the disposal of the property.

11. At the same time, the stretch of Osterley Way that passes in front of Kotuku House does not have legal road status. This land is formed as road and is managed by Auckland Transport but legally it forms part of the plaza.

12. Eke Panuku is legalising the formed road at Osterley Way where it passes in front of Kotuku House. This process will create a parcel of land that will sit between Kotuku House and the road. We propose that this parcel be sold as part of the Kotuku House disposal, which will give Kotuku House legal access and will also unlock more development potential for that property.

13. The parcel in front of Kotuku House (4 Osterley Way) is a 650 m² vacant parcel of land that is currently part of Manukau Plaza (16 Amersham Way). A title for this parcel will be issued following legalisation of the stretch of Osterley Way in front of Kotuku House.

14. The Auckland Unitary Plan zoning is Business – Metropolitan Centre.

15. The 650 m² parcel of land will not be subject to offer back obligations to the former owner under section 40 of the Public Works Act 1981.

Tauākī whakaaweawe āhuarangi

Climate impact statement

16. It is very likely that the forecourt of Kotuku House will be developed to provide extra accommodation for the property. We recognise that any form of construction and development can increase emissions.

17. Emissions associated with any potential redevelopment can be reduced through development standards agreed through a future development agreement, application of Panuku’s Homestar 6 policy and requirements to reduce carbon emissions in commercial developments.

18. Cash receipts from asset recycling allows to respond to climate impacts.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

19. Eke Panuku consulted all relevant council departments and CCOs on the proposed disposal.

20. Council’s Community Investment team has assessed the parcel against its criteria for open space provision and support the disposal.

21. No other substantive feedback has been received to date.

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

Local impacts and local board views

22. The Ōtara-Papatoetoe Local Board endorsed the disposal of the parcel in front of Kotuku House at its 4 May 2021 business meeting.

Tauākī whakaaweawe Māori

Māori impact statement

23. Eke Panuku engagement with mana whenua through the Transform Manukau mana whenua project working group has been ongoing since 2016. In addition, 13 mana whenua iwi authorities were contacted for site-specific feedback on the proposed sale of Kotuku House (4 Osterley Way, Manukau). This engagement sought to understand if there were any issues of cultural significance with the proposed disposal. Two iwi entities expressed a potential commercial interest in Kotuku House.

24. Eke Panuku engaged with 19 mana whenua iwi authorities on the proposed disposal of the 650 m² vacant parcel in front of Kotuku House, currently part of Manukau Plaza (16 Amersham Way). 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 together with the sale of Kotuku House was provided as part of the engagement undertaken.

25. No site-specific feedback has been received regarding the subject parcel. If the subject parcel is approved for disposal, Eke Panuku will inform all mana whenua entities of council’s decision. In addition, Eke Panuku will also undertake its standard process of informing all iwi entities of upcoming commercial opportunities to acquire both the parcel and Kotuku House together six weeks before the property is brought to the open market.

Ngā ritenga ā-pūtea

Financial implications

26. Capital receipts from the sale of surplus properties normally would contribute to Auckland Plan outcomes and the 10-year budget (long-term plan) by providing the council with an efficient use of capital and prioritisation of funds to achieve its activities and projects. As the parcel is located within the Transform Manukau Priority Location area, the proceeds from the sale will be reinvested into the Transform Manukau project.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

27. If the subject parcel is not approved for sale, Kotuku House will be left with no legal access, which will affect the sale price. Council will then have to negotiate with a future owner of Kotuku House to agree terms for an easement.

Ngā koringa ā-muri

Next steps

28. Should the Finance and Performance Committee approve the proposed disposals, Panuku will satisfy any statutory obligations and prepare the property for disposal and complete the sales process.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Images of property at 16 Amersham Way, Manukau	17

Ngā kaihaina

Signatories

Authors

Carl May - Portfolio Specialist

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

Authorisers

Letitia Edwards - Head of Strategic Asset Optimisation (Acting)

Marian Webb – General Manager Assets and Delivery

Peter Gudsell - Group Chief Financial Officer

Finance and Performance Committee

20 May 2021

Auckland Council Group and Auckland Council quarterly performance report for the 9 months ended 31 March 2021

File No.: CP2021/04511

Te take mō te pūrongo

Purpose of the report

1. To provide an update on the financial and non-financial performance for the Auckland Council Group and Auckland Council against the Emergency Budget 2020/2021 for the nine months to 31 March 2021.

Whakarāpopototanga matua

Executive summary

2. Despite the ongoing COVID-19 disruption, the Auckland Council Group delivered a satisfactory performance for the nine months to 31 March 2021. The capital delivery of $1.7 billion, was a decrease of 6 per cent or $114 million compared with the same period last year. The net direct operating result was $309 million favourable compared to the Emergency Budget.

3. Full-time equivalents for the group decreased by 215 since 30 June 2020 to 10,868, mainly due to attrition, restructuring and tight recruitment controls.

4. Representatives of the substantive council-controlled organisations (CCOs) boards, chief executives and chief financial officers have presented their 31 March results at the 18 May 2021 CCO Oversight Committee.

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a) receive the Auckland Council Group and Auckland Council quarterly performance report for the nine months ended 31 March 2021.

Horopaki

Context

5. The Emergency Budget 2020/2021 was adopted in July 2020. Key aspects of the Emergency Budget include:

· an average general rate increase of 3.5 per cent

· over $2.5 billion group capital investment for the year

· $200 million in group savings and temporary cost reductions

· $244 million from asset recycling.

6. The committee is provided with management and statutory results on a quarterly basis to review performance against the Emergency Budget and the prior year. While the management and statutory results reconcile, they are aggregated and analysed with different lenses. The quarterly performance report provides a governance and management view of the organisation’s performance and is tailored to highlight key performance areas (refer Attachments A and B). The statutory results provide an investor view and are based on accounting standards (refer Attachment C).

7. Representatives of the substantive council-controlled organisations (CCOs) boards, chief executives and chief financial officers presented their 31 March results at the 18 May 2021 CCO Oversight Committee.

Tātaritanga me ngā tohutohu

Analysis and advice

Summary of Group Quarterly Performance

8. The Auckland Council Group has delivered positive performance for the nine months ended 31 March 2021.

9. Capital investment of $1.7 billion over the nine-month period is a decrease of 6% or $114 million as compared with the same period last year and represents 91% of budgeted delivery despite the COVID-19 disruptions. The Auckland Council Group is unlikely to achieve the full year capital investment budget of $2.6 billion. Auckland Council and Auckland Transport made up the largest shortfall against budget. Both were behind budget due to late adoption of budgets, with Auckland Transport also experiencing delays in construction of a critical path of Stage 2 Eastern Busway project due to COVID-19 Alert Level 3 lockdown in August 2020.

10. The group achieved a positive operating performance result for the nine-month period. Direct revenue of $1.6 billion was $144 million ahead of budget, and direct expenditure of $2 billion was $165 million favourable to budget. Included in direct revenue is a $89 million surplus against budget related to Watercare’s infrastructure growth charges. Overall, total net direct operating expenditure was $309 million favourable to budget.

11. The favourable cashflow results from the positive operating performance has been partially offset by a delay in realising the cashflow benefits from asset recycling. So far $60 million has been achieved for the nine months to 31 March 2021 out of this year’s $244 million asset recycling target. This is forecast to be $125 million by the end of the year with around $70 million of property in the active sales phase. The shortfall in the current year is largely due to the timing of the city centre carpark opportunities.

12. During the nine-month period, the council issued $450 million of new floating rate notes to the Local Government Funding Agency and $500 million in 30-year domestic fixed rate green bonds to help fund the $1.7 billion of capital investment.

13. The group’s benchmark debt-to-revenue ratio is 270 per cent. The Emergency Budget projected the debt-to-revenue ratio to increase to 290 per cent but due to the positive revenue performance and lower capital investment current indications are that the group’s debt to revenue ratio will be circa 270 per cent at the end of the year.

14. The capital investment over the quarter resulted in net debt ending at$10.2 billion as at 31 March 2021, with a net debt to total assets ratio of 18 per cent.

15. Full-time equivalents (FTEs) for the Auckland Council Group decreased by 215 since 30 June 2020, with Auckland Council being the largest contributor with a decrease of 236. Auckland Council FTEs have decreased largely due to attrition, redundancies and tight recruitment controls. Restructures took place at Panuku Development Limited and Ports of Auckland Limited resulting in a decrease of 37 FTE. Auckland Unlimited saw a decrease of 51 FTE as a result of reduced events and programmes combined with a recruitment freeze. Both Watercare Services Limited and Auckland Transport had moderate increases of 66 and 43 respectively, both in frontline revenue-generating areas.

16. At that time the Emergency Budget was adopted, Auckland Council estimated that staff numbers could potentially decrease to around 6000 by the end of this financial year. This was based on the savings that the council committed to delivering in the Emergency Budget year and other assumptions (for example lower customer demand) informing the analysis of FTE and contingent worker resourcing needed to deliver services and work programmes.

17. While staffing levels have declined, they are not projected to fall to the previous target of 6000. Auckland Council now estimates that FTE levels will be between 6250 and 6350 by the end of this financial year.

18. This estimate is due to a significantly higher level of public demand for core council services than was expected when the Emergency Budget was adopted and the need to deliver critical shovel-ready infrastructure projects. Key examples of increased service demand include building and resource consenting, community facilities and venues. Building and resource consenting activity, which had been expected to fall by around 25 per cent, is currently tracking above pre-COVID-19 levels.

19. Much of the additional activity is associated with additional revenue, so the higher than anticipated level of staff resourcing is generally not leading to higher net costs.

20. The key financial and performance risks for the council group are currently:

· The risk of further COVID-19 disruptions and a consequential decline in economic conditions

· Further delays in achieving cash flow benefits from asset recycling

· Ongoing under-delivery of capital expenditure if the group capital programme is unable to regain the momentum lost in the first quarter of the year.

21. 27 of 80 measures have been updated. 13 have been met and 14 have not been met. Library visits, website and internet sessions still have not returned to levels pre-March 2020. Resource and Building consents volumes continue to grow, recording the highest number ever, performance levels continue to be impacted.

Summary of Auckland Council Quarterly Performance

22. Auckland Council’s capital expenditure tracked within its budget at 80 per cent for the nine-month period. Capital expenditure was lower than budgeted across the organisation, including, community facilities, city centre programme and ICT. Remedial actions are being taken to accelerate projects, expenditure and delivery.

23. Net direct expenditure was $104 million favourable to budget. This is largely due to a combination of strong regulatory revenue, the continuation of tight spending controls in response to COVID-19 and reduced project operating costs from delays in capital projects.

24. At 31 March 2021, the council had achieved $119 million towards the $120 million Emergency Budget savings target.

Detailed Performance Reporting

25. Detailed financial and non-financial performance of the Auckland Council Group and Auckland Council are provided in the attachments to this report.

Auckland Council Group Statutory Financial Report

26. The Auckland Council Group financial report based on the statutory results for the nine months ended 31 March 2021 is included in Attachment C.

27. The results in the statutory financial report reconcile with the results in the Group Quarterly Performance Report. A copy of the reconciliation is included in Attachment D.

Tauākī whakaaweawe āhuarangi

Climate impact statement

28. This committee paper relates to financial reporting. No decision is sought in this paper that has a direct impact on the group’s greenhouse gas emissions nor the group’s approach to preparing for climate change.

29. However, it is acknowledged that the activities undertaken by the group and reported on within the quarterly reporting packs have the potential to be impacted by climate change and can also reinforce or weaken our climate action response.

30. Climate action projects have been added to strategic focus areas in the Auckland Council Group quarterly reporting pack in Attachment A. This section details highlights, risks and progress on key programmes of work. These disclosures assist in holding the Auckland Council publicly accountable, and ensures the business maintains its focus on addressing climate change risk at all levels across the council.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

31. The group quarterly performance report and quarterly statutory financial report reflect the results of the group for the nine months ended 31 March 2021. The council-controlled organisations and Ports of Auckland are involved in the preparation of this information.

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

Local impacts and local board views

32. Community investment is one of Auckland Council’s strategic focus areas. The Auckland Council quarterly report in Attachment B provides highlights, issues and risks related to local and regional projects.

33. No decisions are being sought in this report that could have an impact on local boards.

Tauākī whakaaweawe Māori

Māori impact statement

34. Māori outcomes is one of our group and council’s strategic focus areas. Attachments A and B provide key information and progress of delivery on the agreed programmes for the group and the council respectively.

35. No decisions are being sought in this report that could have an impact on Māori.

Ngā ritenga ā-pūtea

Financial implications

36. No financial decisions are sought and accordingly there are no financial implications directly arising from the information contained in the report.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

37. There is a limited risk that the information lacks accuracy and completeness due to it not being subject to an audit. Management has performed due diligence by obtaining detailed explanations from all Auckland Council business units as well as group entities supplemented by representation letters provided by CCOs and POAL’s Audit and Risk chairs and CEOs.

Ngā koringa ā-muri

Next steps

38. Management will provide the committee with a quarterly performance report for the year ended 30 June 2021 at the 31 October 2021 meeting. This will be provided alongside the statutory annual report for financial year 2020/2021.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Auckland Council Group Quarterly Performance Report 31 March 2021	25
b ⇩	Auckland Council Quarterly Performance Report 31 March 2021	45
c ⇩	Auckland Council Group Statutory Financial Report 31 March 2021	67
d ⇩	Reconciliation of management results to statutory results 31 March 2021	75

Ngā kaihaina

Signatories

Authors

Tracy Gers - Group Accounting & Reporting Manager

Francis Caetano - Group Financial Controller

Karuna Dahya - Strategy Analyst

Pramod Nair - Head of Group Financial Planning

Authorisers

John Bishop - Group Treasurer

Nicola Mills - General Manager Financial and Business Performance

Ross Tucker - General Manager, Financial Strategy and Planning

Peter Gudsell - Group Chief Financial Officer

Finance and Performance Committee

20 May 2021

Emergency Budget 2020/2021 - Update May 2021

File No.: CP2021/05359

Te take mō te pūrongo

Purpose of the report

1. To provide a financial update information since the Emergency Budget was adopted.

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 financial year progressed, positive revenue results from certain areas meant a lower revenue loss compared to Emergency Budget projections. These areas include:

· Regulatory revenue and consenting volumes higher than Emergency Budget assumptions

· Stronger Infrastructure Growth Charges and new connections revenue from Watercare.

5. Despite the more favourable revenue outlook, the committee resolved that it remains prudent to continue paying down debt for the remainder of the financial year to provide a buffer against future shocks given the high degree of uncertainty surrounding the longer-term revenue projections.

6. This month includes an update on progress for 2020/2021 against the Emergency Budget as at the end of April 2021.

Progress for 2020/2021 against the Emergency Budget

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

8. Auckland Council has achieved the $120 million savings target that was agreed in the Emergency Budget. A further $0.6 million of cost reductions have been achieved in April 2021, bringing the total achieved savings to $120 million.

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 fully achieved the $120 million council organisation savings target.

Horopaki

Context

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

10. 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.

11. 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.

Tātaritanga me ngā tohutohu

Analysis and advice

Progress for 2020/2021 against the Emergency Budget

Financial performance (April)

12. A verbal update on the group financial performance for April 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 savings 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 April, Auckland Council has achieved the $120 million savings target. $0.6 million of savings were achieved in April 2021 from lower uptake of the inorganic collection service reducing outsourced costs

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

20 May 2021

Treasury Management Policy review

File No.: CP2021/06186

Te take mō te pūrongo

Purpose of the report

1. To seek approval for the revised Treasury Management Policy.

Whakarāpopototanga matua

Executive summary

2. The Treasury Management Policy details the most significant elements of the Auckland Council Group’s treasury policy. The council also has a Treasury Operating Manual which includes more detailed operational policies and procedures.

3. Following the review of the Treasury Management Policy, the Treasury Management Steering Group (the membership of which includes senior council and CCO finance staff as well as independent members) have recommended amendments to the policy.

4. The main recommended amendments to the policy are:

· increase the debt to revenue ratio policy limit from 270% to 290%

· the introduction of a new reporting metric and limit: the balance after capital account deficit to be less than 20% over a five year average

· removing the interest to rates limit

· replacing the existing liquidity measure with the liquidity measure used by the Local Government Funding Agency.

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a) note the amendments made to the Treasury Management Policy.

b) approve the revised Treasury Management Policy (Attachment A of the agenda report).

Horopaki

Context

5. The Treasury Management Policy (TMP) details the most significant elements of the group’s treasury policy.

6. The TMP is a requirement pursuant to section 102 of the Local Government Act 2002. It is the group’s liability management policy and investment policy.

7. While there is no formal requirement to regularly review and ‘re-approve’ the policy, it is generally approved every three years as part of the long-term plan process (or as required) by the appropriate committee. It is considered good practice to undertake periodic reviews.

8. The TMP was last approved by the Finance and Performance Committee in November 2020. At the time, staff noted that they were working with the credit rating agencies to stress test the council’s credit rating debt thresholds (to inform the Long-term Plan 2021-2031 planning) and that the exercise might identify changes to the TMP in the near future. The changes are included in the TMP version presented today.

9. The council also produces a Treasury Operating Manual (TOM) that is approved by the council’s Treasury Management Steering Group. The TOM must be consistent with the TMP and includes more detailed operational policies and procedures.

Tātaritanga me ngā tohutohu

Analysis and advice

10. Following the exercise with the credit rating agencies to stress test our credit rating debt thresholds (to inform our Long-term Plan 2021-2031), amendments to the TMP have been identified. The proposed changes are outlined below.

Debt to revenue limit

11. The credit rating scenario analysis undertaken by S&P Global and Moody’s indicates that the council can maintain an AA/Aa2 credit rating (other things being equal) with a debt to revenue ratio of up to 290 per cent on a sustained basis.

12. Given the need for a substantial increase in capital expenditure investment in Auckland in the near term, and the impact this will have on the council’s financial position that will manifest through the Long-term Plan 2021-2031, it is recommended that the current debt to revenue policy limit be increased from 270 per cent to 290 per cent to accommodate this investment.

13. Note that the increase in policy limit does not necessarily mean that council can afford to or should utilise the additional limit. Consideration should be given to factors such as the need to repay any additional debt, the need to fund the additional servicing costs of the debt (i.e. interest and depreciation), and the requirement to keep headroom to allow for a future unforeseen event.

Balance after capital account deficit

14. The credit rating scenario analysis undertaken by the rating agencies also highlighted that, to maintain an AA/Aa2 credit rating, the level of the balance after capital account deficit needs to average less than 20 per cent of revenues over five years.

15. The balance after capital account deficit measures the level of cash operating and capital expenditure against cash revenue (including capital revenues), such as development contributions and capital grants to fund capital expenditure). It is inconsistent with an AA/Aa2 rating to have the level of cash operating and capital expenditure exceed cash revenue by more than 20 per cent on a sustained basis.

16. We propose adopting the S&P Global definitions and their approach to calculating the ratio (which involves a five year average: the current year, the latest two historic years and the next two forecast years).

17. We propose adding this ratio as a prudential measure and monitoring it in the same way we monitor the debt to revenue ratio.

Interest to rates limit

18. The current TMP includes an interest to rates limit of 25 per cent and an interest to revenue limit of 15 per cent.

19. The interest to rates income limit is inconsistent with a group approach to treasury management. The current calculation excludes interest directly relating to Watercare and Auckland Transport (i.e. interest associated with the electric train loans). This is therefore a quasi-parent measure, rather than a group measure.

20. The interest to total revenue ratio remains appropriate as it is consistent with a group approach to treasury management and provides an adequate check on the level of interest expense incurred within the group.

21. Both S&P Global and Moody’s calculate interest as a percentage of revenue and do not focus on interest as a percentage of rates.

22. Note that the Local Government Funding Agency (LGFA) covenants (compliance obligations) include an interest to rates ratio. However, that calculation is different from the TMP calculation in that:

· it is based on net interest

· it includes all interest (except interest on Watercare borrowings, interest associated with the Crowns share of Electric Multiple Units (electric trains) loans and interest on Ports of Auckland Limited borrowings)

· limit is set at 30 per cent.

23. We therefore propose removing the interest to rates income limit from the TMP.

Liquidity

24. The current TMP includes a liquidity measure defined as “cash and liquid investments plus headroom under committed funding facilities to equal a minimum period of forecast net cash outflow including maturing debt on a rolling basis” of at least 6 months.

25. The council also has a liquidity covenant with the LGFA which requires that “the council parent external debt plus committed standby facilities plus liquid investments divided by council parent external debt” must be greater than 110 per cent.

26. Given the obligation to comply with the LGFA liquidity covenant, adopting this as the council’s liquidity measure simplifies compliance and monitoring.

27. The change to this measure has been discussed with the credit rating agencies and they have not raised any issues with this proposed change.

Other comments

28. The rest of the TMP is still considered fit for purpose, including targeting an AA/Aa2 credit rating.

29. The proposed changes to the TMP do not adversely impact on the council’s compliance with the LGFA covenants.

30. When selecting limits for the TMP, the most appropriate and prudent ratios have been chosen (or those that are more stringent to comply with). For example, by complying with the S&P Global debt to revenue ratio, we are confident that we will comply with LGFA’s debt to revenue covenant.

31. Based on the 10-year Budget 2021-2031 consultation document projection, staff are comfortable that the council can comply with the updated TMP limits.

32. A copy of the proposed TMP (marked-up) is attached as Attachment A.

Tauākī whakaaweawe āhuarangi

Climate impact statement

33. Climate-related treasury activities (e.g. issuing green bonds) are subject to the TMP.

34. While the TMP does not explicitly address climate issues, it does enable council treasury to lead developments in this area, for example being the first institution in New Zealand to issue a green bond. The council’s Sustainable Finance Framework lists the overarching criteria and guidelines on sustainable financing by the council.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

35. The TMP applies to the Auckland Council Group (excluding Ports of Auckland Limited). It specifies that CCOs will be consulted on any treasury matters of material significance to that COO.

36. For this reason, the Treasury Management Steering Group includes senior finance members of Watercare and Auckland Transport. They considered the views of their CCO in their decision to endorse the TMP in April 2021.

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

Local impacts and local board views

37. The governing body (or a committee of the whole) is responsible for decision-making relating to the council’s financial management including managing its revenues, assets, liabilities, investments and general financial dealings prudently and in a manner that promotes the current and future interests of the community. The TMP sets the parameters for the Auckland Council Group’s liabilities and investments.

38. Local boards have the opportunity to provide their views on the application of the TMP, including the impact on their budgets and communities through the long-term plan and annual plan processes.

Tauākī whakaaweawe Māori

Māori impact statement

39. The TMP relates to the council’s borrowings and investments which enable the council to carry out its activities; including those focused on Māori outcomes.

Ngā ritenga ā-pūtea

Financial implications

40. The changes proposed to the TMP have been considered as part of the preparation of the Long-term Plan 2021-2031. The proposed amendments make the policy consistent with the current methodology of rating agencies, fit for purpose and provides appropriate flexibility for the council to manage treasury activities.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

41. The TMP is one of the policies we have in place to manage our treasury-related risks. It is revised regularly (at least every three years) to ensure it is still appropriate. If changes are not adopted there is a risk that council will approve plans outside our key financial parameters, which will risk an adverse credit rating outcome.

Ngā koringa ā-muri

Next steps

42. The revised TMP will be final and adopted when it is approved by the Finance and Performance Committee.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Revised Treasury Management Policy	85

Ngā kaihaina

Signatories

Author

Andrew John - Treasury Funding Manager

Authorisers

John Bishop - Group Treasurer

Peter Gudsell - Group Chief Financial Officer

Finance and Performance Committee

20 May 2021

Summary of Finance and Performance Committee information memoranda and briefings, including the Forward Work Programme - 20 May 2021

File No.: CP2021/04219

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
5/5/2021	Memorandum from Deputy Chief Executive – Auckland Council staffing numbers – update ahead of quarter three reporting to Finance and Performance Committee in May 2021 – Attachment B

5. The following workshops/briefings have taken place:

Date	Workshop/Briefing
13/4/2021	Finance and Performance Committee Workshop – Development Contributions – Attachment C
14/4/2021	Finance and Performance Committee Confidential Workshop – 10-year Budget 2021-2031 (no attachment)
21/4/2021	Finance and Performance Committee Confidential joint hui with the Tūpuna Maunga Authority – Operational Plan (no attachment)
21/4/2021	Finance and Performance Committee Confidential Workshop – 10-year Budget 2021-2031 (no attachment)
21/4/2021	Finance and Performance Committee Confidential Workshop – Accommodation Provider Targeted Rate (no attachment)
28/4/2021	Finance and Performance Committee Workshop – 10-year Budget 2021-2031 (no attachment)
3/5/2021	Finance and Performance Committee Workshop – 10-year Budget 2021-2031 (no attachment)
5/5/2021	Finance and Performance Committee Workshop – 10-year Budget 2021-2031 (no attachment)
10/5/2021	Finance and Performance Committee Workshop – 10-year Budget 2021-2031 (no attachment)
12/5/2021	Finance and Performance Committee Workshop – 10-year Budget 2021-2031 (no attachment)

These documents can be found on the Auckland Council website, at the following link: http://infocouncil.aucklandcouncil.govt.nz/

o at the top left of the page, select meeting/Te hui “Finance and Performance Committee” from the drop-down tab and click “View”;

o under ‘Attachments’, select either the HTML or PDF version of the document entitled ‘Extra Attachments’.

6. 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 20 May 2021.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Finance and Performance Committee Forward Work Programme	93
b ⇨	Memorandum – Auckland Council staffing numbers – update ahead of quarter three reporting to Finance and Performance Committee in May 2021 (Under Separate Cover)
c ⇨	Finance and Performance Committee Workshop – Development Contributions – 13 April 2021 (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

20 May 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
Area of work and Lead Department	Reason for work	Committee role (decision and/or direction)	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, 2 December 2020, 10 February 2021, 10 March 2021, 14 April 2021, 21 April 2021, 28 April 2021, 3 May 2021, 5 May 2021, 10 May 2021 and 12 May 2021) 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 Accommodation Provider Targeted Rate Suspension – Link to 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 Annual Budget (May 2022) Recommend final Annual Budget (June 2022) Adopt final Annual 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 Emergency Budget 2020/2021 – Update April 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 C40 development additional land disposal recommendation – 331 (part) Great North Road, Henderson Link to decision Note: Properties are recommended for acquisitions and disposal to the committee for approval in accordance with the Long-term Plan/Annual Budget. 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 (May/Jun) Progress to date: Approval of the Auckland Regional Amenities Funding Levy – Link to decision (note this report was deferred until 22 April 2021) Consideration of ARAFA, MOTAT and Auckland Museum annual plans and council funding contributions, 2021/2022 – Link to decision
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 (Dec) · Development Contribution Policy (Sept – Governing Body) · Group Procurement Policy · Revenue and Financing Policy (through the 10-year Budget process) · Significance and Engagement Policy · Treasury Management Policy (May) 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: 14 May 2021

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