I hereby give notice that an extraordinary meeting of the Governing Body will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Tuesday, 29 June 2021

10.00am

Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

 

Tira Kāwana / Governing Body

 

OPEN AGENDA

 

 

 

 

MEMBERSHIP

 

Mayor

Hon Phil Goff, CNZM, JP

 

Deputy Mayor

Deputy Mayor Cr Bill Cashmore

 

Councillors

Cr Josephine Bartley

Cr Richard Hills

 

Cr Dr Cathy Casey

Cr Tracy Mulholland

 

Cr Fa’anana Efeso Collins

Cr Daniel Newman, JP

 

Cr Pippa Coom

Cr Greg Sayers

 

Cr Linda Cooper, JP

Cr Desley Simpson, JP

 

Cr Angela Dalton

Cr Sharon Stewart, QSM

 

Cr Chris Darby

Cr Wayne Walker

 

Cr Alf Filipaina

Cr John Watson

 

Cr Christine Fletcher, QSO

Cr Paul Young

 

Cr Shane Henderson

 

 

(Quorum 11 members)

 

 

 

Sarndra O'Toole

Kaiarataki Kapa Tohutohu Mana Whakahaere / Team Leader Governance Advisors

 

23 June 2021

 

Contact Telephone: (09) 890 8152

Email: sarndra.otoole@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 



 

Terms of Reference

 

Those powers which cannot legally be delegated:

 

(a)        the power to make a rate

(b)        the power to make a bylaw

(c)        the power to borrow money, or purchase or dispose of assets, other than in accordance with the Long-Term Plan

(d)        the power to adopt a long-term plan, annual plan, or annual report

(e)        the power to appoint a chief executive

(f)        the power to adopt policies required to be adopted and consulted on under the Local Government Act 2002 in association with the long-term plan or developed for the purpose of the local governance statement

(g)        the power to adopt a remuneration and employment policy

 

Additional responsibilities retained by the Governing Body:

 

(h)        approval of long-term plan or annual plan consultation documents, supporting information and consultation process prior to consultation

(i)         approval of a draft bylaw prior to consultation

(j)         resolutions required to be made by a local authority under the Local Electoral Act 2001, including the appointment of electoral officer

(k)        adoption of, and amendment to, the Committee Terms of Reference, Standing Orders and Code of Conduct

(l)         relationships with the Independent Māori Statutory Board, including the funding agreement and appointments to committees

(m)      overview of and decisions relating to any CCO review including the implementation of any resulting changes to CCOs

(n)        oversight of work programmes of all committees of the governing body.

 

 


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.

 

 


Governing Body

29 June 2021

 

 

ITEM   TABLE OF CONTENTS                                                                                         PAGE

1          Affirmation                                                                                                                      7

2          Apologies                                                                                                                        7

3          Declaration of Interest                                                                                                   7

4          Petitions                                                                                                                          7  

5          Public Input                                                                                                                    7

6          Local Board Input                                                                                                          7

7          Extraordinary Business                                                                                                7

8          Tūpuna Maunga Authority Operational Plan 2021/2022 and 10-year budget 2021-2031                                                                                                                                 9

9          Adoption of the Revenue and Financing Policy                                                    109

10        Adoption of the Recovery Budget (10-year Budget 2021-2031)                           131

11        Rates setting 2021/2022                                                                                            137

12        Consideration of Extraordinary Items

 


1          Affirmation

His Worship the Mayor will read the affirmation.

 

2          Apologies

At the close of the agenda no apologies had been received.

 

3          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 intrest they might have.

 

4          Petitions

There is no petitions section.

 

5          Public Input

There is no public input section.

 

6          Local Board Input

There is no local board input section.

 

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.”


Governing Body

29 June 2021

 

 

Tūpuna Maunga Authority Operational Plan 2021/2022 and 10-year budget 2021-2031

File No.: CP2021/08503

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To agree to the Tūpuna Maunga Authority Operational Plan 2021/2022 and the Summary of the Tūpuna Maunga Authority Operational Plan 2021/2022.

Whakarāpopototanga matua

Executive summary

2.       Feedback on the Draft Tūpuna Maunga Authority Operational Plan 2021/2022, received through the 10-year Budget consultation process, was considered on the 21 April 2021 jointly with the Tūpuna Maunga Authority. 

3.       On 31 May 2021, the Tūpuna Maunga Authority agreed the authority’s Operational Plan 2021/2022 and the Summary of the Operational Plan 2021/2022.

4.       The Governing Body is invited to approve the Tūpuna Maunga Authority Operational Plan 2021/2022 and the Summary of the Tūpuna Maunga Authority Operational Plan 2021/2022 for inclusion in the 10-year Budget 2021-2031 also known as the Long-term Plan.

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a)      whakaae (agree) the Tūpuna Maunga Authority Operational Plan 2021/2022 (Attachment A) and Summary of the Tūpuna Maunga Authority Operational Plan 2021/2022 (Attachment B), and to whakaae (agree) to include the Summary in the 10-year Budget 2021-2031 (Long-term Plan).

Horopaki

Context

5.       Each year the Tūpuna Maunga Authority Operational Plan is developed to provide a framework in which the council will carry out its functions for the routine management of the tūpuna maunga under the direction of the Tūpuna Maunga Authority. The Tūpuna Maunga Authority Operational Plan must be prepared and agreed concurrently with the council’s annual budget and included in summary form in the annual budget (this year, the 10-year Budget).

6.       A summary of the Draft Tūpuna Maunga Authority Operational Plan was included in the council’s 10-year Budget Consultation Document, and public feedback was received by the council and the Tūpuna Maunga Authority. A report summarising the feedback was received at a joint meeting of the council and the Tūpuna Maunga Authority.

Tātaritanga me ngā tohutohu

Analysis and advice

7.       On 16 November 2020, the Tūpuna Maunga Authority adopted its Draft Tūpuna Maunga Operational Plan 2021/2022 and Draft Summary of the Tūpuna Maunga Operational Plan 2021/2022 for inclusion in the consultation document and supporting information to support consultation on the 10-year Budget 2021-2031.

8.       On 9 December 2020, the Governing Body adopted the Draft Tūpuna Maunga Operational Plan 2021/2022 and the Draft Summary of the Tūpuna Maunga Operational Plan 2021/2022 for consultation.

9.       On 18 February 2021, the Governing Body adopted the consultation document and supporting information which included the Draft Summary of the Tūpuna Maunga Operational Plan 2021/2022. The Governing Body also agreed the approach to consultation including participation in a joint deliberations meeting with the Tūpuna Maunga Authority on submissions on the Draft Tūpuna Maunga Operational Plan 2021/2022.

10.     The council received feedback on the Draft Tūpuna Maunga Operational Plan 2021/2022 through its 10-year Budget consultation process.

11.     The Tūpuna Maunga Authority also sought and received feedback on the Draft Tūpuna Maunga Operational Plan 2021/2022 and held one hearing of oral submissions on 15 March 2021.

12.     A report was prepared summarising feedback received on the Draft Tūpuna Maunga Operational Plan through both the council and Tūpuna Maunga Authority consultation processes. This was considered on 21 April 2021, when joint deliberation was held between the Tūpuna Maunga Authority and the Finance and Performance Committee.

13.     On 31 May 2021, the Tūpuna Maunga Authority agreed the authority’s Operational Plan 2021/2022 and the Summary of the Operational Plan 2021/2022, without amendment. 

14.     Staff recommend that the Governing Body agree the Tūpuna Maunga Authority Operational Plan 2021/2022, and the Summary of the Tūpuna Maunga Authority Operational Plan 2021/2022 for inclusion in the 10-year Budget 2021-2031.

Tauākī whakaaweawe āhuarangi

Climate impact statement

15.     This report relates to the budget and operational plan of the Tūpuna Maunga Authority, an independent co-governance entity. Matters relating to climate impacts may be addressed by that authority.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

16.     This report relates to the budget and operational plan of the Tūpuna Maunga Authority, an independent co-governance entity.  The authority has its own independent relationships with the various parts of the council group.

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

Local impacts and local board views

17.     The Tūpuna Maunga Authority sought the views of the eight local boards with tūpuna maunga within their areas.  No submissions were received during the consultation period through either of the Auckland Council or Tūpuna Maunga Authority consultation processes.

Tauākī whakaaweawe Māori

Māori impact statement

18.     The Tūpuna Maunga Authority is a tangible expression of a Treaty-based partnership between Ngā Mana Whenua and the council. It is a vehicle through which the mana whenua worldview and historical, cultural and spiritual connections with the maunga will be given visibility and guide decision-making for the health and wellbeing of these important taonga.  The Tūpuna Maunga Authority has engaged with Ngā Mana Whenua on the Draft Tūpuna Maunga Operational Plan 2021/2022 and no submissions have been received.

Ngā ritenga ā-pūtea

Financial implications

19.     The budget for the Tūpuna Maunga Authority Operational Plan 2021/2022 was resolved by the Governing Body on 25 May 2021 and is provided for in the council’s 10-year Budget 2021-2031.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

20.     The Tūpuna Maunga Authority Operational Plan 2021/2022 is necessary to support the council’s routine management of the tūpuna maunga under the direction of the Tūpuna Maunga Authority and must be agreed by the Auckland Council and the Tūpuna Maunga Authority prior to 1 July 2021.  There is a reputational risk to Māori outcomes and relationships if the council did not approve funding for the Tūpuna Maunga in the Auckland area. This could affect council’s ongoing relationships with mana whenua organisations of Tāmaki Makaurau.  There is also a reputational risk in relation to sections of the community opposed to co-governance entities established by Treaty of Waitangi settlements and the council continuing to fund them, despite the statutory requirement for such funding.

Ngā koringa ā-muri

Next steps

21.     Prior to 1 July 2021, the council will need to adopt the final 10-year Budget 2021-2031 which will provide funding for the Tūpuna Maunga Operational Plan 2021/2022. If this Tūpuna Maunga Operational Plan 2021/2022 and summary are approved, necessary steps will be taken to make the plan available for online public view and to include the summary within the final 10-year Budget.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Tūpuna Maunga Authority Operational Plan 2021/2022

13

b

Summary of the Tūpuna Maunga Authority Operational Plan 2021/2022

101

      

Ngā kaihaina

Signatories

Author

Dominic Wilson - Head of Co-governance

Authorisers

Phil Wilson - Governance Director

Jim Stabback - Chief Executive

 


Governing Body

29 June 2021

 

 

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Governing Body

29 June 2021

 

 

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Governing Body

29 June 2021

 

 

Adoption of the Revenue and Financing Policy

File No.: CP2021/08447

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To adopt amendments to the Revenue and Financing Policy as part of the council’s long-term plan referred to as the Recovery Budget (10-year Budget 2021-2031).

Whakarāpopototanga matua

Executive summary

2.       The purpose of the Revenue and Financing Policy is to provide predictability and certainty about sources of funding available to the council.  It explains the rationale for, and the process of selecting, various tools to fund the operating and capital expenditure of the council. Separate consultation is required when changes are made to the policy and the amended policy must be adopted prior to being included in the Recovery Budget (10-year Budget 2021-2031) consultation process.

3.       As part of the Recovery Budget (10-year Budget 2021-2031), the Governing Body consulted on a number of potential changes to council’s rating policy which also required changes to the Revenue and Financing Policy. Updates to the Revenue and Financing Policy were also required to reflect revised timing for fully funding depreciation, removing references to ATEED (now part of Auckland Unlimited), and an editorial change to clarify the description of the long-term differential strategy. Consultation on the proposed amendments to the Revenue and Financing Policy was undertaken alongside the Recovery Budget (10-year Budget 2021-2031).

4.       Fourteen submitters provided feedback on the proposed changes to the Revenue and Financing Policy, eight agreed with the changes while six disagreed. Submitters commented on the level of remuneration staff received and that council should reduce non-core services. Feedback received on individual issues consulted on for the Recovery Budget (10-year Budget 2021-2031) has already been considered by the Finance and Performance Committee on 25 May 2021.

5.       On 25 May 2021, the Governing Body agreed the changes to the rating policy and budget parameters for the Recovery Budget (10-year Budget 2021-2031). This included:

·        the Mayoral Proposal for the 10-year Budget 2021-2031 which included the impacts on funding depreciation

·        changes to the Urban Rating Area, which now include setting differentials based on zoning

·        introduction of the Electricity Network Resilience Targeted Rate

·        introduction of the Rodney Drainage Districts Targeted Rate

·        removal of the Clevedon Wastewater and Water Connection Targeted Rate.

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a)      adopt the Revenue and Financing Policy in Attachment A of the agenda report.

 

Horopaki

Context

Revenue and Financing Policy

6.       The Revenue and Financing Policy sets out the:

·        funding tools available (for example rates and fees for services like building consents)

·        factors considered when deciding which tools to use

·        decisions made on how to fund each activity.

7.       The Local Government Act 2002 requires the council to adopt a Revenue and Financing Policy prior to its inclusion in the Recovery Budget (10-year Budget 2021-2031).

Decision making

8.       The Local Government Act 2002 sets out the key requirements, the council must comply with when making decisions. In particular, the council must:

·        identify all reasonably practicable options to achieve the objective of the decision

·        assess those options in terms of their advantages and disadvantages

·        give due consideration, with an open mind, to the views and preferences of people likely to be affected by, or have an interest, in the decision.

9.       The consultation process for the Revenue and Financing Policy and the Recovery Budget (10-year Budget 2021-2031) provided an opportunity for those interested in, or affected by, decisions to have their voices heard by their elected representatives prior to decisions being made. Feedback received during consultation is a key element of the matters that need to be considered when making final decisions. The council must weigh up the information provided on the advantages and disadvantages, consider the feedback received from local boards and the public, and then arrive at what it determines to be the best decision.

10.     When making decisions the council is limited by the scope of the original consultation. Decisions can only be made within the bounds of the options put forward for consultation. If the council wishes to make a decision outside the scope of the original consultation, then further consultation is required.

Consultation and feedback

11.     Proposed changes to the Revenue and Financing Policy were consulted on in February and March 2021 as well as being included in the consultation materials for the Recovery Budget (10-year Budget 2021-2031). Analysis of the feedback received on the proposed changes to the rating policy was considered by the Finance and Performance Committee and agreed by the Governing Body on 25 May 2021. Feedback received from consultation on the proposed changes to the Revenue and Financing Policy has been included in this report.

Tātaritanga me ngā tohutohu

Analysis and advice

12.     The council proposed the following amendments to the Revenue and Financing Policy (in line with the proposals for the 10-year Budget 2021-2031):

·        change the matters used to define the general rate Urban Rating Area to include activities that are permitted, controlled, or discretionary for the area in which the land is situated, and the rules to which the land is subject under the Auckland Unitary Plan

·        change the service being funded by the Accommodation Provider Targeted Rate to remove reference to ATEED (now part of Auckland Unlimited)

·        add the Electricity Network Resilience Targeted Rate to fund the maintenance of trees near powerlines

·        add the Rodney Drainage Districts Targeted Rate to fund maintenance of drainage assets in the drainage districts

·        add the Clevedon Wastewater and Water Connection Targeted Rate to fund connection costs to reticulated wastewater and water systems

·        updates to reflect our revised timing for fully funding depreciation

·        updates to clarify the description of the long-term differential strategy.

13.     Fourteen submitters provided feedback from consultation on the Revenue and Financing Policy. Eight submitters agreed with the proposed changes and six disagreed. Comments received included:

·        not to increase rates

·        reduce staff salaries and wages

·        reduce provision of “non-core” services

·        how funding for depreciation should be managed.

14.     Feedback received on individual issues consulted on for the Recovery Budget (10-year Budget 2021-2031) has already been considered by the Finance and Performance Committee on 25 May 2021. Following recommendations from the Finance and Performance Committee, the Governing Body agreed the:

·        Mayoral Proposal for the 10-year Budget 2021-2031 which included the impacts on funding depreciation

·        proposed changes to the Urban Rating Area and to transition the resulting rates changes over three years

·        introduction of the Electricity Network Resilience Targeted Rate and the Rodney Drainage Districts Targeted Rate

·        removal of the Clevedon Wastewater and Water Connection Targeted Rate.

Tauākī whakaaweawe āhuarangi

Climate impact statement

15.     Recommendations in this report have a primarily neutral climate impact as they relate to the allocation of charges rather than decisions on activities to be undertaken.

16.     The enhanced tree maintenance funded by the proposed Electricity Network Resilience Targeted Rate may result in a reduction of the tree canopy. This will be managed by the additional tree planting funded from the rate and additional investment in tree planting funded from the council resource freed up by the rate.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

17.     The recommendations relating to the Electricity Network Resilience Targeted Rate, Rodney Drainage Districts Targeted Rate, and Clevedon Wastewater and Water Connection Targeted Rate have been communicated to, and agreed on, by Healthy Waters and Community Facilities.

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

Local impacts and local board views

18.     The Governing Body has decision making authority for the Revenue and Financing Policy.

19.     Local boards considered the proposed changes to funding sources and levels as set out in the consultation on the Recovery Budget (10-year Budget 2021-2031) at meetings in April/May 2021. Local boards provided their views on the impacts of regional decisions on their local community at the 12 May workshop of the Finance and Performance Committee. Local board feedback on the proposed changes was considered at the Finance and Performance Committee meeting on 25 May 2021.

20.     The Franklin Local Board was the only local board that provided feedback on the proposed changes to the Revenue and Financing Policy by way of a formal resolution, which was in support of the changes.

Tauākī whakaaweawe Māori

Māori impact statement

21.     The council does not hold information on the ethnicity of ratepayers so is not able to identify the exact impact on the proposed changes on Māori. The impact of the proposed changes on Māori will be similar to that on other residents in Auckland.

22.     The proposal to extend the Urban Rating Area (URA) does not affect any Māori land[1] properties. All identified Māori land properties in Auckland are either within the current URA or are located outside the Rural Urban Boundary.

23.     The proposal to remove the farm and lifestyle differential in the URA does not affect any Māori land properties.

24.     Māori impact and views were considered as part of the decisions made by Finance and Performance Committee on 25 May 2021.

25.     As part of the public consultation process on the Recovery Budget, 761 submissions were received from individuals who identified as Māori.

26.     The Governing Body held a hui with Mana Whenua to hear their views on the 10-year budget. 25 Mana Whenua representatives, representing nine iwi authorities attended. Overall, we received 18 submissions from Mana Whenua (iwi authorities).

27.     Auckland Council received 18 submissions from 18 Mataawaka organisations.

Ngā ritenga ā-pūtea

Financial implications

28.     There are no financial implications from the recommendations in this report.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

29.     The council’s proposed rates decisions are based on this Revenue and Financing Policy. Legally, rates must be set in accordance with the long-term plan (including the Revenue and Financing Policy) and the Funding Impact Statement for the respective year. If the amendments to the Revenue and Financing Policy are not adopted, then this will create inconsistencies with some of the proposed rates changes for 2021/2022 and expose the council to increased legal risk.

30.     This report has been reviewed by Legal Services to check compliance with relevant legislation.

Ngā koringa ā-muri

Next steps

31.     The Revenue and Financing Policy will be included in the Recovery Budget (10-year Budget 2021-2031) for adoption that is on a separate report on the agenda for this meeting.

 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Draft Revenue and Financing Policy

115

     

Ngā kaihaina

Signatories

Authors

Aaron Matich - Principal Advisor – Financial Policy

Andrew Duncan - Manager Financial Policy

Authorisers

Ross Tucker - General Manager, Financial Strategy and Planning

Peter Gudsell - Group Chief Financial Officer

Jim Stabback - Chief Executive

 


Governing Body

29 June 2021

 

 

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Governing Body

29 June 2021

 

 

Adoption of the Recovery Budget (10-year Budget 2021-2031)

File No.: CP2021/08535

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To adopt the Recovery Budget (10-year Budget 2021-2031) also known as the Long-term Plan, including 21 Local Board Agreements.

Whakarāpopototanga matua

Executive summary

2.       On 25 May 2021, following the consideration of public feedback received and other relevant information, the Governing Body agreed the key decisions needed to finalise the 10-year Budget 2021-2031. The Recovery Budget document has been prepared reflecting these decisions. In particular, it includes:

·   prospective financial statements and other financial information based on the budget decisions made on 25 May 2021

·   rating policy, reflecting decisions made on 25 May 2021

·   local board agreements and other local content – as adopted by local boards between 15 and 17 June 2021.

3.       The Audit and Risk Committee has been involved in the 10-year Budget process since August 2020. On 22 June 2021, the Audit and Risk Committee received a report on the key controls and risks relating to the 10-year Budget.  The Audit and Risk Committee resolved to:

·    advise the Governing Body that effective internal control and risk management processes have been followed during the preparation of the Recovery Budget (10-year Budget 2021-2031)

·    advise the Governing Body that there are no significant outstanding audit issues other than in relation to land transport funding.

4.       The Local Government Act 2002 requires the council to adopt a long-term plan before 1 July 2021. Following adoption, staff will finalise documentation for distribution.

5.       Given the document reflects the decisions made on 25 May 2021 and that the document attached to this report has been confirmed as being compliant with both legal and audit requirements (aside from the outstanding audit issue in relation to land transport funding), only limited minor changes can be made without triggering further audit and legal review.

6.       Staff are continuing to work with Audit NZ to provide further information which supports the assumptions in the 10-year Budget relating to transport investment.

 

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a)      adopt the Recovery Budget (10-year Budget 2021-2031), as the council’s long-term plan for 2021-2031, including 21 local board agreements

b)      delegate authority and responsibility for jointly agreeing any required editorial changes to the Recovery Budget (10-year Budget 2021-2031) document to the chair of the Finance and Performance Committee and the Group Chief Financial Officer.

 

Horopaki

Context

7.       Once every three years, the council is required to adopt a long-term plan (also known as a 10-year Budget, or in this instance the Recovery Budget). In the intervening years, the council is required to adopt an annual plan. These plans set out intended service levels and agreed budgets, and provide the basis on which the council’s rates are set.

8.       For each financial year, the council must have a local board agreement (as agreed between the Governing Body and the local board) for each local board area. These local board agreements set out priorities and intended levels of service for local activities, and the capital and operating expenditure budgets required to fund these activities. The local board agreements for the 2021/2022 financial year have been developed as part of the long-term plan process and have been adopted by the local boards.

9.       For each financial year, the Tūpuna Maunga Authority and the council must agree an annual operational plan to provide a framework in which the council will carry out its functions for the routine management of the maunga and administered lands. The Tūpuna Maunga Authority Operational Plan must be prepared and adopted concurrently with the council’s long-term plan and be included in summary form in the long-term plan.  The Tūpuna Maunga Authority adopted the operational plan and summary on 31 May 2021.

Consultation process

10.     In December 2020, the Governing Body agreed the proposals to be consulted on for the 10-year Budget.

11.     In late December 2020 and January 2021, the 10-year Budget 2021-2031 Consultation Document and Supporting Information were prepared and audited by Audit NZ.

12.     On 18 February 2021, the Governing Body adopted the consultation document, supporting information, and agreed the approach to consultation. The Deputy Auditor-General supplied an independent auditors’ report which was inserted into the consultation document.

13.     Public consultation on the council’s 10-year Budget proposals was open between 22 February 2021 and 22 March 2021.

14.     The following approach was used to ensure decision-makers were well informed about feedback received:

·   staff with specific subject matter expertise reviewed feedback received relevant to their areas of expertise and summarised the issues raised

·   reports were prepared which summarised the feedback. These were discussed at the Finance and Performance Committee workshop on 21 April 2021. These reports did not contain analysis of the implications of the feedback received as this was included in decision-making reports considered by the Finance and Performance Committee on 25 May 2021

·   21 reports were prepared summarising the feedback for each local board area and were considered by each local board between 5 and 7 May 2021.

15.     In addition to the feedback summary reports, all feedback received was made available to elected members. In May 2021, the feedback summary reports, along with all submissions, were made available to the public via the Auckland Council website.

Final decision making

16.     On 25 May 2021, the Finance and Performance Committee recommended to the Governing Body the decisions required to finalise the 10-year Budget 2021-2031. The Governing Body subsequently agreed these decisions. These included decisions required to finalise local board agreements.

17.     Following decisions made by the Governing Body on 25 May 2021, agreements were prepared for each local board that reflected:

·   the impact of decisions made by the Governing Body on 25 May 2021

·   re-prioritisation decisions by local boards of locally driven initiative (discretionary) budgets

·   the allocation of central costs (including depreciation, interest, corporate overheads and staff costs)

·   minor administrative adjustments, if any.

18.     Decisions made on 25 May 2021 at the Finance and Performance Committee and Governing Body have been incorporated into the 10-year Budget 2021-2031 materials recommended for adoption today.

19.     Local board business meetings were held between 15 and 17 June 2021, where all 21 local boards adopted their agreements for 2021/2022.  The resolutions can be found in Attachment A of this report.

Tātaritanga me ngā tohutohu

Analysis and advice

Preparation of the final LTP (10-year Budget) document

20.     Following the decisions on the 25 May 2021, three volumes (attachments B, C and D) have been prepared that make up the 10-year Budget. These attachments are draft versions only and the versions for adoption will be tabled on the day of the meeting (29 June 2021) along with a table of changes between the versions. A link to the final products will be added to the minutes.

21.     The contents of these three volumes are as follows:

·   Volume 1 – Provides an overview of the key highlights and priorities for 2021-2031. It includes the prospective financial statements and other key financial information.  This volume also contains the independent auditor’s report on the 10-year Budget.

·   Volume 2 – Provides a strategic overview and includes Auckland’s 30-year Infrastructure Strategy and our Financial Strategy.  It also sets out our activities and services, key policy information and information on our council-controlled organisations (CCOs), including the CCO Accountability Policy.

·   Volume 3 - Includes the local board agreements and other local information.

22.     When preparing, consulting on and making decisions on the 10-year Budget, the council has followed a thorough process, including considering:

·   significance and materiality

·   the extent of the council’s resources

·   decision-making obligations in Part 6 of the Local Government Act 2002

·   content requirements for a long-term plan

·   prudent financial management requirements.

23.     Council’s internal legal team has reviewed the 10-year Budget and has confirmed that it complies with the requirements for a long-term plan in the Local Government Act 2002, the Local Government (Auckland Council) Act 2009, and other related legislation, and that it complies with the decisions made by the Governing Body on 25 May 2021.

24.     Audit NZ has worked closely with the council staff finalising the 10-year Budget document. Their feedback has been incorporated. A final independent auditor’s report will be received at the Governing Body meeting today and will be incorporated into the final document (Volume 1).

25.     On 22 June 2021, Audit and Risk Committee received a report on the key controls and risk relating to the 10-year Budget. The Audit and Risk Committee resolved to:

·    advise the Governing Body that effective internal control and risk management processes have been followed during the preparation of the Recovery Budget (10-year Budget 2021-2031)

·    advise the Governing Body that there are no significant outstanding audit issues other than in relation to land transport funding.

26.     The Audit and Risk Committee also agreed to a delegation to the chair of the committee to provide further advice to the Governing Body as the audit work progresses.

27.     The Auckland Transport Alignment Project 2021-2031 (ATAP) was released on 12 March and has been agreed by both Auckland Council and Cabinet. The ATAP agreement sets out the transport investment for Auckland for the next decade and how it will be funded. This forms the basis of our budgets and planning, including our funding forecasts for the 10-year Budget. Audit NZ has identified assumptions relating to ATAP funding as significant due to their impact on the financial forecasts and their uncertainty.

28.     At the time of writing this paper, Audit NZ are in discussion with management about the implications of the indicative funding announcement by Waka Kotahi on 31 May 2021. This is because of the difference between the indicative funding for part of the transport programme and what is forecast for the next three years based on the ATAP agreement. Staff are continuing to work with Audit NZ to provide them further information which supports the assumptions in the 10-year Budget relating to transport investment. An update will be provided to the Governing Body either prior to, or at the 29 June Governing Body meeting when this report is considered.

29.     Given the document reflects the decisions made on 25 May 2021 and that the document attached to this report has been confirmed as being compliant with both legal and audit requirements (aside from the outstanding audit issue in relation to land transport funding), only limited minor changes can be made without triggering further audit and legal review.

Tauākī whakaaweawe āhuarangi

Climate impact statement

30.     This report outlines the process for developing the 10-year Budget 2021-2031 and as such has no specific impacts on the climate.

31.     The key climate change impacts are explained in Volume 1, Section 1.2.2 and Volume 2, Section 1.0 in Attachments B and C respectively. 

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

32.     All council departments will be affected by decisions made for the 10-year Budget 2021-2031.  Budget updates have been made on a regular basis to the Executive Leadership Team, council departments and the council-controlled organisations.

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

Local impacts and local board views

33.     Local boards have been involved in developing the 10-year Budget 2021-2031. Prior to making final decisions, discussions were held between the Finance and Performance Committee and local boards on 12 May 2021. On 25 May 2021, the Finance and Performance Committee was also provided with a summary report which included all resolutions on advocacy and regional issues passed by local boards regarding decision making for the 10-year Budget.

34.     The local board agreements for the 2021/2022 financial year have been developed as part of the long-term plan process and have been adopted by the local boards.

 

Tauākī whakaaweawe Māori

Māori impact statement

35.     The emerging Māori Outcomes Framework: Kia Ora Tāmaki Makaurau outlines a focus on ten key wellbeing outcomes – defined by Māori as areas that matter most to them – and how Auckland Council can contribute to these aspirations through its activities and budgets. Over the 2021-2031 period, council’s activities will focus on the key priorities identified in Volume 1, Section 1.2.6 and Volume 2, Section 1.0 and 2.0 in Attachments B and C respectively.

36.     Māori impact and views were considered as part of the decisions made by the Finance and Performance Committee on 25 May 2021.

37.     As part of the public consultation process on the Recovery Budget, 761 submissions were received from individuals who identified as Māori.

38.     The Governing Body held a hui with Mana Whenua to hear their views on the 10-year Budget. 25 Mana Whenua representatives, representing nine iwi authorities attended. Overall, we received 18 submissions from Mana Whenua (iwi authorities).

39.     Auckland Council received 18 submissions from 18 Mataawaka organisations.

Ngā ritenga ā-pūtea

Financial implications

40.     The 10-year Budget sets the council’s budget for the following ten years.  The financial decisions made on 25 May 2021 have been reflected in the final 10-year Budget attached to this report.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

41.     There are no significant risks relating to the adoption of the 10-year Budget 2021-2031 (Long-term Plan) itself.

42.     Compliance was a risk with the prescriptive requirements of the Local Government Act 2002. Legal Services have reviewed the final documentation to ensure legislative compliance before seeking adoption by the Governing Body today. 

43.     The final documentation was submitted to Audit NZ for their final review in June 2021 in accordance with the statutory requirement for the 10-year Budget to be audited.

44.     The Audit and Risk Committee has had an important oversight role for risks associated with the 10-year Budget and have received updates on key risks and mitigations throughout the process.

45.     Adopting the 10-year Budget will enable rates to be set for the following financial year. Failing to adopt the 10-year Budget could impact the council’s ability to continue to deliver the services and projects that Auckland needs.

Ngā koringa ā-muri

Next steps

46.     The Local Government Act 2002 requires the council to adopt a long-term plan for the period 2021-2031 before 1 July 2021.  Adoption of the 10-year Budget 2021-2031 is required before the council can set rates for 2021/2022, which will be considered in a separate report on this agenda.


 

 

47.     Following adoption of the Recovery Budget (10-year Budget 2021-2031), staff will prepare the final documentation for distribution. A digital version of the document will be available on the council’s website and printed copies will be available to view at libraries, service centres and local board offices. Copies will also be provided to the Secretary for Local Government, to the Parliamentary Library and the Auditor-General and to council’s trustee companies who oversee our debenture trust deed requirements in New Zealand and other jurisdictions.  Hard copies will also be available on request.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

A

All Local Board Resolutions for Adoption (Under separate cover)

 

B

Recovery Budget 2021-2031 Volume 1 (Under separate cover)

 

C

Recovery Budget 2021-2031 Volume 2 (Under separate cover)

 

D

Recovery Budget 2021-2031 Volume 3 (Under separate cover)

 

 

Ngā kaihaina

Signatories

Authors

Kylie Thompson - Programme Manager

Michael Burns - Manager Financial Strategy

Authorisers

Ross Tucker - General Manager, Financial Strategy and Planning

Peter Gudsell - Group Chief Financial Officer

Jim Stabback - Chief Executive

 


Governing Body

29 June 2021

 

 

Rates setting 2021/2022

File No.: CP2021/08594

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To recommend that the Governing Body set the rates for the 2021/2022 financial year.

Whakarāpopototanga matua

Executive summary

2.       Legislation requires that rates are set by resolution of the Governing Body after the adoption of the long-term plan (also referred to as the 10-year Budget 2021-2031 or the Recovery Budget) and that they must be set in accordance with the:

·      relevant provisions of the council’s long-term plan (including the Revenue and Financing Policy); and

·      Funding Impact Statement (FIS) for the 2021/2022 financial year (contained in the long-term plan).

3.       The FIS and recommendations have been prepared to reflect the decisions made on 25 May by the Governing Body. A report recommending amendments to the Revenue and Financing Policy has been included as another item on the agenda for this meeting. This report has been prepared on the basis that the Governing Body has agreed to those amendments.

4.       The recommendations in this report also set the instalment dates, early payment discount, and penalties to be applied for late payment for the 2021/2022 financial year.

5.       Rates are projected to produce around $2.14 billion of revenue for the council in 2021/2022. This makes up around 40 per cent of total council revenue.

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a)      resolve under the Local Government (Rating) Act 2002 to set rates and due dates for the 2021/2022 financial year and to authorise the addition of penalties as follows:

i)        that a Uniform Annual General Charge be set, for all rateable land, at $461 (including GST) per separately used or inhabited part of a rating unit (SUIP)

ii)       that a general rate be set for all rateable land on the capital value of the land and at different rates in the dollar for different categories of land (defined in the Funding Impact Statement in the council's Long-term Plan 2021-2031) as set out in the table below:

Property category

Rate in the dollar for 2021/2022 (including GST) ($)

Urban business

0.00560010

Urban residential

0.00206791

Rural business

0.00504009

Rural residential

0.00186112

Farm and lifestyle

0.00165433

No road access

0.00051698

Zero-rated

0.00000000

Urban moderate-occupancy online accommodation provider

0.00383400

Rural moderate-occupancy online accommodation provider

0.00345060

Urban medium-occupancy online accommodation provider

0.00295096

Rural medium-occupancy online accommodation provider

0.00265586

Urban residential transition

0.00192998

Urban business transition

0.00522657

Urban farm and lifestyle residential transition

0.00179226

Urban medium-occupancy online accommodation provider transition

0.00275425

Urban moderate-occupancy online accommodation provider transition

0.00357831

iii)      that a Water Quality targeted rate be set on the capital value of all rateable land except land categorised as zero-rated, as defined for rating purposes, of an amount of $0.00011211 (including GST) per dollar of capital value applied to all rateable land categorised as business (Urban business, Urban business transition and Rural business), and $0.00006380 (including GST) per dollar of capital value to all rateable land not categorised as business (Urban residential, Urban residential transition, Rural residential, Farm and lifestyle, Urban farm and lifestyle residential transition, urban medium-occupancy online accommodation provider, Urban medium-occupancy online accommodation provider transition, rural medium-occupancy online accommodation provider, urban moderate-occupancy online accommodation provider, Urban moderate-occupancy online accommodation provider transition, rural moderate-occupancy online accommodation provider, and No road access) as defined for rating purposes

iv)      that a Natural Environment targeted rate be set on the capital value of all rateable land except land categorised as zero-rated, as defined for rating purposes, of an amount of $0.00007603 (including GST) per dollar of capital value applied to all rateable land categorised as business (Urban business, Urban business transition and Rural business), and $0.00004326  (including GST) per dollar of capital value to all rateable land not categorised as business (Urban residential, Urban residential transition, Rural residential, Farm and lifestyle, Urban farm and lifestyle residential transition, urban medium-occupancy online accommodation provider, Urban medium-occupancy online accommodation provider transition, rural medium-occupancy online accommodation provider, urban moderate-occupancy online accommodation provider, Urban moderate-occupancy online accommodation provider transition, rural moderate-occupancy online accommodation provider, and No road access) as defined for rating purposes

 


 

 

v)      that waste management targeted rates be set differentially for different categories of land at different fixed amounts, as set out in the table below:

Service

Differential group

Amount of targeted rate for 2021/2022 (including GST) ($)

Charging basis

Base service

Rating units in the former Auckland City

142.70

Per service available

Rating units in the former Franklin District, Manukau City, North Shore City, Papakura District, Rodney District and Waitakere City, where the service is available

142.70

Per SUIP

Base service excluding recycling

Rating units in the former Auckland City

53.80

Per service available

Standard refuse

 

Rating units in the former Auckland City

150.06

Per service available

Rating units in the former Manukau City where the service is available

150.06

Per SUIP

Large refuse

Rating units in the former Auckland City and Manukau City

70.53

Per service available

Additional recycling

All rating units

88.90

Per service available

Food scraps

Rating units in the former Papakura District and the former food scraps trial area in Northcote, Milford and Takapuna, where the service is available

69.88

Per SUIP

 

Note to table: For these purposes the various waste services are as set out in the Auckland Waste Management and Minimisation Plan and the Funding Impact Statement in the council’s Annual Plan 10-year Budget 2021-2031.

vi)      that a City Centre targeted rate be set differentially for all rateable land in the urban business, urban residential, urban moderate-occupancy online accommodation provider, and urban medium-occupancy online accommodation provider differential categories, as defined for rating purposes, and in the city centre area, of an amount of $0.00128394 (including GST) per dollar of the capital value of the rating unit for urban business rating units and of a fixed amount of $63.02 (including GST) per separately used or inhabited part (SUIP) of a rating unit for urban residential, urban moderate-occupancy online accommodation provider, and urban medium-occupancy online accommodation provider rating units

vii)     that a Rodney Local Board Transport targeted rate be set for all rateable land in the Rodney Local Board area except land categorised as zero-rated as defined for rating purposes, of an amount of $150 (including GST) per separately used or inhabited part of a rating unit (SUIP)

viii)    that an Electricity Network Resilience targeted rate of $12,075,000 (including GST) be set on Vector’s electricity network utility rating unit where tree management service is provided

ix)      that Rodney Drainage District targeted rates be set for all land located in the Te Arai drainage district and the Okahukura drainage district respectively, as set out in the table below:

Drainage district

Rate for each square metre of Class A land for 2021/2022 (including GST) ($)

Rate for each square metre of Class B land for 2021/2022 (including GST) ($)

Rate for each square metre of Class C land for 2021/2022 (including GST) ($)

Te Arai

0.00184463

0.00092231

0.00000000

Okahukura

0.00266984

0.00133492

0.00000000

 

x)      that Business Improvement District (BID) targeted rates be set for all rateable land in the urban business or rural business differential categories, as defined for rating purposes, within the defined Business Improvement District areas, of a fixed amount per rating unit and/or a rate in the dollar of capital value of the rating unit, as set out in the table below:

BID area

Fixed rate per rating unit for 2021/2022 (including GST) ($)

Rate in the dollar for 2021/2022 to be multiplied by the capital value of the rating unit

(including GST) ($)

Avondale

0.00

0.00122066

Birkenhead

0.00

0.00091835

Blockhouse Bay

0.00

0.00149931

Browns Bay

0.00

0.00051386

Central Park Henderson

250.00

0.00009876

Devonport

250.00

0.00066706

Dominion Road

0.00

0.00052682

Ellerslie

0.00

0.00206997

Glen Eden

0.00

0.00098869

Glen Innes

0.00

0.00105693

Greater East Tāmaki

195.00

0.00003545

Heart of the City

0.00

0.00040106

Howick

0.00

0.00094104

Hunters Corner

0.00

0.00075168

Karangahape Road

0.00

0.00051443

Kingsland

0.00

0.00044516

Mairangi Bay

250.00

0.00136611

Māngere Bridge

0.00

0.00142180

Māngere East Village

0.00

0.00029693

Māngere Town

0.00

0.00401509

Manukau Central

0.00

0.00033364

Manurewa

0.00

0.00101144

Milford

0.00

0.00062599

Mt Eden Village

0.00

0.00060190

New Lynn

0.00

0.00060667

Newmarket

0.00

0.00055649

North Harbour

150.00

0.00009359

North West District

250.00

0.00016910

Northcote

0.00

0.00243177

Old Papatoetoe

0.00

0.00129134

One Warkworth

575.00

0.00000000

Onehunga

0.00

0.00112440

Orewa

0.00

0.00095911

Ōtāhuhu

0.00

0.00071795

Ōtara

0.00

0.00164000

Panmure

0.00

0.00143467

Papakura

0.00

0.00072102

Parnell

0.00

0.00056684

Ponsonby

0.00

0.00077729

Pukekohe

0.00

0.00050609

Remuera

0.00

0.00112280

Rosebank

0.00

0.00037981

South Harbour

0.00

0.00043913

St Heliers

0.00

0.00107212

Takapuna

0.00

0.00040096

Te Atatu

0.00

0.00135649

Torbay

0.00

0.00108301

Uptown

0.00

0.00018530

Waiuku

0.00

0.00103667

Wiri

0.00

0.00021367

 

 

xi)      that the Ōtara-Papatoetoe and Māngere-Ōtāhuhu swimming pool targeted rates be set for all rateable land in the urban residential, urban residential transition, urban farm and lifestyle residential transition, rural residential, urban moderate-occupancy online accommodation provider, urban moderate-occupancy online accommodation provider transition, urban medium-occupancy online accommodation provider, urban medium-occupancy online accommodation provider transition, rural moderate-occupancy online accommodation provider, or rural medium-occupancy online accommodation provider differential categories, as defined for rating purposes, located in the respective Māngere–Ōtāhuhu Local Board or Ōtara-Papatoetoe Local Board area, of a fixed amount per separately used or inhabited part of a rating unit (SUIP), as set out in the table below:

Local board area

Fixed rate for each separately used or inhabited part of a rating unit for 2021/2022 (including GST) ($)

Māngere-Ōtāhuhu

33.35

Ōtara-Papatoetoe

31.65

xii)     that the Swimming/Spa Pool Fencing Compliance targeted rate be set for all rateable land on the council’s register of pool fence and barrier inspections, set differentially based on whether the council provides inspection, as a fixed amount per rating unit as set out in the table below:

Inspection service provided

Fixed rate per rating unit for 2021/2022 (including GST) ($)

Council inspection required

$44.44

No council inspection required – successful inspection carried out by an Independently Qualified Pool Inspector (IQPI)

$22.22

xiii)    that the Riverhaven Drive targeted rate be set on land in Riverhaven Drive, Rodney, in respect of which the council has provided financial assistance for the construction of a road that gives access to the rating units, of an amount of $9,211.83 (including GST) per rating unit

xiv)    that the Waitakere Rural Sewerage targeted rate be set for all land in the district of the former Waitakere City Council which has an on-site waste management system and in respect of which the council has available the service of pumping out the system and which is scheduled to take place within the three-year period commencing 1 July 2018, of an amount of $296.75 (including GST) for each such on-site waste management system

xv)    that the Retro-fit Your Home targeted rate be set on land in respect of which the council has provided financial assistance under the Retro-fit Your Home scheme, at different levels based on the extent of the outstanding assistance by reference to the year that the ratepayer started repaying the financial assistance by this targeted rate, of an amount set out in the table below:


 

Year of repayment

Rate in the dollar for 2021/2022 to be multiplied by the ratepayers outstanding balance as at 30 June 2021 (including GST) ($)

1

0.13835000

2

0.15206000

3

0.16973000

4

0.19337000

5

0.22655000

6

0.27643000

7

0.35968000

8

0.52641000

9

1.02705000

xvi)    that the Kumeu Huapai Riverhead Wastewater targeted rate be set on land in respect of which the council has provided financial assistance to connect to the Kumeu Huapai Riverhead pressurised wastewater scheme, at different levels based on the extent of the outstanding assistance by reference to the year that the ratepayer started repaying the financial assistance by this targeted rate, of an amount set out in the table below:

Year of repayment

Rate in the dollar for 2021/2022 to be multiplied by the ratepayers outstanding balance as at 30 June 2021 (including GST) ($)

7

0.15847000

9

0.19458000

xvii)   that the On-site Wastewater Systems (Septic Tank) Upgrades targeted rate be set on land in respect of which the council has provided financial assistance for the replacement or upgrade of failing on-site wastewater systems (septic tanks) in the west coast lagoons and Little Oneroa catchments, at different levels based on the extent of the outstanding assistance by reference to the year that the ratepayer started repaying the financial assistance by this targeted rate, of an amount set out in the table below:

Year of repayment

Rate in the dollar for 2021/2022 to be multiplied by the ratepayers outstanding balance as at 30 June 2021 (including GST) ($)

4

0.12783400

xviii)  that the Point Wells Wastewater targeted rate be set on land in respect of which the council has provided financial assistance to connect to a pressure wastewater collection system in Point Wells, of an amount per rating unit based on the extent of the financial assistance as shown in the following table:

Total assistance provided

Amount of targeted rate per rating unit for 2021/2022 (including GST) ($)

$8,000

632.78

$8,500

672.34

$9,000

711.88

$9,500

751.42

$10,000

790.97

xix)    that the Jackson Crescent Wastewater targeted rate be set on land in respect of which the council has provided financial assistance to connect to a wastewater collection scheme in the Jackson Crescent, Martins Bay area, of an amount of $571.14 (including GST) per rating unit

xx)    that for the purposes of the above rates, the definitions of the city centre area, the various Business Improvement Districts, the expression "separately used or inhabited part of a rating unit" and the differential categories for rates charged on a differential basis are as set out in the Funding Impact Statement in the council's 10-year Budget 2021-2031

xxi)    that for the 2021/2022 financial year, all rates be payable in four equal instalments, on the following due dates:

Instalment

Due Date

1

31 August 2021

2

30 November 2021

3

28 February 2022

4

30 May 2022

xxii)   that a penalty of ten per cent of any portion of any instalment of rates assessed in the 2021/2022 rating year that is not paid by the due date for payment of that instalment be added to the amount of unpaid rates. The penalty will be added on the day following the due date, being 1 September 2021, 1 December 2021, 1 March 2022, and 31 May 2022 respectively

xxiii)  that a further penalty of ten per cent of any rates assessed in any financial year prior to 1 July 2021 that remain unpaid on 7 July 2021, be added on 8 July 2021

xxiv)  that a further penalty of ten per cent of any rates to which a penalty has been added under resolution (xxiii) above if those rates are unpaid on 8 January 2022, be added on 9 January 2022.

b)      agree that in accordance with the council’s Early Payment Discount Policy the discount for the early payment of rates be set at 0.19 per cent of the 2021/2022 rates, if those rates, together with any outstanding prior years’ rates and penalties, are paid in full on or before the due date of the first instalment (31 August 2021).

 

Horopaki

Context

6.       At its meetings on 25 May 2021, the Governing Body agreed recommendations from the Finance and Performance Committee regarding rates policy issues for inclusion in the Recovery Budget (10-year Budget 2021-2031). These included to:

i)        increase the average general rates by 5 per cent in 2021/2022 and then 3.5 per cent annually thereafter

ii)       extend the Water Quality Targeted Rate from 2027/2028 to 2030/2031 and increase it by 5 per cent in 2021/2022 and then 3.5 per cent annually thereafter

iii)      extend the Natural Environment Targeted Rate from 2027/2028 to 2030/2031

iv)      align the Urban Rating Area with the Rural Urban Boundary, except for Warkworth and land zoned Future Urban, but including Future Urban zoned Ockleston Landing and Halls Farm consented developments

v)      charge residential rates to farm and lifestyle properties located inside the Urban Rating Area

 

 

vi)      transition the changes to the Urban Rating Area and farm and lifestyle properties over three years

vii)     introduce the Electricity Network Resilience Targeted Rate to be set on Vector’s utility assets of $10.5 million (excluding GST) for 2021/2022, to be adjusted annually for council rate of inflation

viii)    extend the duration of the City Centre Targeted Rate and investment programmes it funds until 2030/2031

ix)      increase the waste management standard refuse and large refuse targeted rates to $150.06 and $70.53 respectively (including GST) for 2021/2022

x)      increase the Waitākere Rural Sewerage Targeted Rate to $296.75 (including GST) for 2021/2022, 2022/2023 and 2023/2024

xi)      reinstate interest on loan repayment targeted rates

xii)     adjust for cost inflation the waste management targeted rates (those other than standard refuse and large refuse), local board swimming pool entry targeted rates, Swimming/Spa Pool Compliance Targeted Rate and the City Centre Targeted Rate

xiii)    remove the Clevedon wastewater and water connection targeted rate

xiv)    introduce Rodney Drainage District targeted rates (of various amounts based on location of land) to fund the management of drainage assets in the Te Arai and Okahukura drainage districts respectively

xv)    adopt the changes to the Business Improvement District (BID) Targeted Rates proposed by the business associations, including the extension of the boundaries for the Manurewa and Dominion Road BIDs

xvi)    extend the suspension of the Accommodation Provider Targeted Rate until 30 June 2022.

Tātaritanga me ngā tohutohu

Analysis and advice

Rates resolution

7.       For the council to assess rates for the 2021/2022 financial year, section 23 of the Local Government (Rating) Act 2002 (LG(R)A) requires the council to set the rates by resolution.  The resolutions contained in this report are consistent with the relevant legislation and the Recovery Budget (10-year Budget 2021-2031).

8.       The LG(R)A requires that the instalment due dates and any penalties must also be set in the same resolution as those used to set the rates. The resolutions necessary for the Governing Body to set the rates, instalment due dates, penalties, and early payment discount for the 2021/2022 financial year are included in the recommendations in this report.

Early payment discount, late payment penalties and instalment dates

9.       This report recommends that all rates be payable in four equal instalments on:

·        instalment 1:        31 August 2021

·        instalment 2:        30 November 2021

·        instalment 3:        28 February 2022

·        instalment 4:        30 May 2022.

 

 

 

 

10.     Officers recommend that a ten per cent penalty be payable for late payment of rates for each rates instalment due date, and that a ten per cent penalty on the previous years’ rates arrears be added at the beginning of the financial year (or five working days after the rates resolution, whichever is the later) and then again six months later. It is recommended that the council set the penalty rate at ten per cent to discourage the use of the council as a bank by ratepayers. Costs incurred by the council from the late payment of rates must inevitably be met by those ratepayers that pay on time. Most councils use a ten per cent penalty.

11.     The early payment discount policy is available to ratepayers who pay their full year’s rates before the due date of the first rates instalment. Under this policy, the council provides a discount based on the council’s forecast short-term borrowing cost, 0.50 per cent for 2021/2022. This passes on council’s interest cost saving to those ratepayers who pay early. For the early payment discount to remain cost neutral, the early payment discount rate should be set at 0.19 per cent.

Tauākī whakaaweawe āhuarangi

Climate impact statement

12.     Recommendations in this report have a primarily neutral climate impact as they relate to the setting of charges rather than decisions on activities to be undertaken.

13.     The enhanced tree maintenance funded by the Electricity Network Resilience Targeted Rate may result in a reduction of the tree canopy. This will be managed by the additional tree planting funded from the rate and additional investment in tree planting funded from the council resource freed up by the rate.

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

Local impacts and local board views

14.     The Governing Body has decision-making authority for setting rates. Local boards’ views on the rating policy proposals were considered as part of decision making on rates and fees issues on 25 May 2021, and as part of the adoption of the Recovery Budget (10-year Budget 2021-2031) at this meeting.

Tauākī whakaaweawe Māori

Māori impact statement

15.     The council does not hold information on the ethnicity of ratepayers, so is not able to identify the exact impact of the policy options on Māori. The rates recommendations in this report will have a similar impact on Māori as it will on other ratepayers.

16.     The views of Māori on the rating policy proposals were considered as part of decision making on rates and fees issues on 25 May 2021, and as part of the adoption of the Recovery Budget (10-year Budget 2021-2031) at this meeting.

17.     As part of the public consultation process for the 10-year Budget, 761 submissions were received from individuals who identified as Māori.

18.     The Governing Body held a hui with Mana Whenua to hear their views on the 10-year Budget. 25 Mana Whenua representatives, representing nine iwi authorities attended. Overall, we received 18 submissions from Mana Whenua (iwi authorities).

19.     Auckland Council received 18 submissions from 18 Mataawaka organisations.

 

 

Ngā ritenga ā-pūtea

Financial implications

20.     The financial implications of the rates set through this report are reflected in the Recovery Budget (10-year Budget 2021-2031) document. Rates make up about 40 per cent of the total revenue for the Auckland Council group. It is projected that the total general rates revenue for 2021/2022 will be $1.89 billion and that targeted rates revenue will be $254 million, before adjusting for rates on council owned properties. 

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

21.     Rates may be set any time after the Recovery Budget (10-year Budget 2021-2031) is adopted. However, the budget has been prepared based on the assumption that rates will be invoiced in early August. Delays in setting the rates, or setting rates that are inconsistent with decisions made by the Governing Body on 25 May 2021 may cause late delivery of the first instalment rates assessment/invoice and delay when penalties can be applied. This would result in increased interest costs through the late receipt of rates revenue and result in increased administrative costs.

22.     The recommendations in this report have been checked by the legal department for legislative compliance.

Ngā koringa ā-muri

Next steps

23.     A copy of the rates resolution will be publicly available on council’s website within 20 working days of adopting the rates resolution.

24.     Ratepayers will receive the first instalment invoice from 2 August 2021.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.    

Ngā kaihaina

Signatories

Authors

Eric Wen - Senior Advisor -  Financial Policy

Andrew Duncan - Manager Financial Policy

Authorisers

Ross Tucker - General Manager, Financial Strategy and Planning

Peter Gudsell - Group Chief Financial Officer

Jim Stabback - Chief Executive

 



[1] Māori land includes land with a status of Māori freehold land, Māori customary land, and some types of general land in Māori ownership such as marae, land returned under settlement, and land converted from Māori freehold land title under the Māori Affairs Act 1967