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

 

Date:

Time:

Meeting Room:

Venue:

 

Tuesday, 25 May 2021

10.00am

Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

 

Kōmiti ā Pūtea, ā Mahi Hoki /
Finance and Performance Committee

 

OPEN ADDENDUM 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

 

24 May 2021

 

Contact Telephone: (09) 890 8150

Email: sandra.gordon@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 


Finance and Performance Committee

25 May 2021

 

 

ITEM   TABLE OF CONTENTS                                                                                         PAGE

 

9          Recovery Budget (10-year Budget 2021-2031) - Mayor's final proposal                 5

 


Finance and Performance Committee

25 May 2021

 

 

Recovery Budget (10-year Budget 2021-2031) - Mayor's final proposal

File No.: CP2021/05456

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To set out the mayor’s recommendations for the Recovery Budget (10-year Budget 2021-2031) for consideration and decisions by the Finance and Performance Committee which will be recommended to the Governing Body meeting on 25 May 2021.

Whakarāpopototanga matua

Executive summary

2.       COVID-19 is still a shadow that hangs over the future of Auckland and our country. While we have been lucky in New Zealand, we have not escaped unscathed. Auckland Council faces an estimated loss of more than $750 million over this and the next three years.

3.       This mayoral proposal has been written in light of that. This 10-year Budget 2021-2031 is a recovery budget. While one response might have been austerity, we have chosen not to go down that path. Instead, this budget aims to balance the need to make progress for the city and to help stimulate economic recovery with the city’s financial capacity and rates rises that ratepayers can afford and will accept.

4.       To address the $450 million projected loss Auckland Council faced in 2020/2021 and to help the recovery of the city in its Emergency Budget, Council made difficult trade-offs and decisions. For our Recovery Budget, this committee, local boards and staff have met for around 150 hours working to find a solution that will keep moving the city forward and ensure we keep investing in the things that matter the most - infrastructure, environment and the COVID-19 recovery.

5.       There has been a concentrated effort to ensure we are keeping up with the infrastructure spend our city needs. The mayoral proposal recommends a total capital investment in this 10-year plan of around $31.8 billion. This is around $400 million more than the draft budget Council consulted on and nearly $6 billion more than the 10-year Budget in 2018-2028. This reflects a major investment increase in three waters as well as increased investment in transport, and in parks and community facilities.

6.       This budget allows Auckland to continue to move forward despite the challenges we face. It sets the framework for the next 10 years, but in an uncertain environment we would need to be agile and subsequent Annual Plans will enable us to make changes as circumstances require.

7.       Next year we will be able to see what progress we have made and consider other options such as greater investment in climate change mitigation and adaption.

8.       In the meantime, I believe we have landed on a budget that helps the city grow and also takes into account the needs of all Aucklanders.


 

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a)      recommend to the Governing Body that the final Recovery Budget (10-year Budget 2021-2031) package be based on updated consultation budget as outlined in attachment C, which includes:

i)        financial levers that support continued delivery of key services and strong investment in new and renewed assets, including:

A)      $90 million ongoing savings for Auckland Council.

B)      $70 million annual asset recycling target for the first three years, with additional targets in subsequent years to reflect timing changes for asset recycling opportunities not realised in 2020/2021.

C)     additional borrowing as represented by the debt to revenue ratio of up to 290 per cent for the first three years, gradually returning to 270 per cent, with an intention to maintain council group’s current credit rating and a strong commitment to long-term financial prudence.

D)     5 per cent average general rates increase for 2021/2022 and 3.5 per cent annual average general rates increase thereafter.

ii)       a package of new climate actions totalling $152 million above existing spending to reduce greenhouse gas emissions and adapt to the impact of climate change.

iii)      a more focused approach to providing infrastructure to support growth in partnership with the central government and private sector, prioritising Auckland Housing Programme and Tamaki, North West, Drury and City Rail Link stations.

iv)      a three-year transition towards a more sustainable investment approach to delivering community services that is less reliant on council assets and focuses more on provision through alternative ways such as partnerships, digital channels and multi-use facilities.

v)      extending the Natural Environment Targeted Rate from 2028 to 2031 to continue the natural environment protection programmes to lock in the benefits realised from past efforts in pest control and ensure ongoing protection for indigenous biodiversity within the region.

vi)      over next year, scoping work programmes which will provide greater protection to notable trees including actions from Council itself and from the government in terms of restoring provisions for comprehensive protection for notable trees.

vii)     extending the Water Quality Targeted Rate from 2028 to 2031 and increasing it by 5 per cent in 2021/2022 and then 3.5 per cent annually thereafter, to improve water quality in other areas of the city, in particular the Eastern Isthmus and Manukau Harbour catchments.

viii)    additional operational funding of $100 million over 10 years for improving public transport services, particularly ferry and new bus services, funded by $50 million additional operational funding from Auckland Council and $50 million operational efficiency from Auckland Transport. Matching funding will be sought from Waka Kotahi.

ix)      additional capital funding of $182 million over 10 years to Auckland Unlimited to ensure necessary renewal of regional venues.

x)      operational funding of $11 million over three years to Auckland Unlimited to support Auckland hosting FIFA Women’s World Cup 2023.

xi)      continuation of $150 million funding to support Māori outcomes over 10 years.

xii)     continuation of $2.067 million in annual grant funding to Auckland Citizen Advice Bureau for the first three years.

xiii)    continuation of $298,000 in annual operational funding to Mangere Mountain Education Trust for the first three years, noting that further consideration on integrating with Tūpuna Maunga Authority will be given once the authority’s education strategy is developed.

xiv)    providing $100,000 per annum in grant funding to the Hibiscus Coast Youth Centre for the first three years, noting that a changing approach to delivering community services may influence the funding needed in the outer years.

Ngā tāpirihanga

Attachments

No.

Title

Page

a

10-year Budget 2021-2031 Final Mayoral Proposal

9

b

Investment scenarios and funding levers

21

c

Mayoral Proposal Budget Scenario

49

d

Climate Action

53

e

Housing and Growth Infrastructure

63

f

Community Investments

71

g

Natural Environment Protection

89

h

Water Quality Improvement

93

      

Ngā kaihaina

Signatories

Author

Phil Goff, Mayor of Auckland

 


Finance and Performance Committee

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