Minutes of Extraordinary Finance and Performance Committee

Finance and Performance Committee

08 December 2021

1 Apologies

Resolution number FIN/2021/100

MOVED by Chairperson D Simpson, seconded by Cr S Henderson:

That the Finance and Performance Committee:

a) accept the apologies from:

Lateness

Cr Hills
Cr Walker

CARRIED

Note: a roll-call was conducted that ascertained the following members were in attendance at the commencement of the meeting:

Mayor P Goff	ü	Cr C Fletcher	ü
Deputy Mayor BC Cashmore	ü	Cr S Henderson	ü
Cr J Bartley	ü	Cr R Hills
IMSB Member R Blair	ü	Cr T Mulholland	ü
Cr C Casey	ü	Cr D Newman	ü
Cr E Collins	ü	Cr G Sayers	ü
Cr P Coom	ü	Cr S Stewart	ü
Cr L Cooper	ü	Cr W Walker
Cr A Dalton	ü	Cr J Watson	ü
Cr C Darby	ü	IMSB Chair D Taipari	ü
Cr A Filipaina	ü	Cr P Young	ü

2 Declaration of Interest

There were no declarations of interest.

3 Petitions

There were no petitions.

4 Public Input

There was no public input.

5 Local Board Input

There was no local board input.

6 Extraordinary Business

There was no extraordinary business.

Annual Budget 2022/2023: Overview to decision making

Cr W Walker joined the meeting at 10.04am.

Resolution number FIN/2021/101

MOVED by Chairperson D Simpson, seconded by Cr S Henderson:

That the Finance and Performance Committee:

a) note the contents of this report, which sets the context for the other reports and decisions on today’s agenda.

b) note that the annual budget consultation will include potential changes to local board decision-making responsibilities as agreed by the Governing Body on 28 October 2021 and further details will be provided in a report to the Governing Body on 8 February 2022.

CARRIED UNANIMOUSLY

8	Annual Budget 2022/2023: Regional topics for consultation - local board input
	Cr R Hills joined the meeting at 10.08am.
	Staff advised there was an error in paragraphs 25 and 26 of the report as follows: Currently reads as follows: 25. Of the 16 local boards who gave feedback on kerbside refuse charging policy review, 13 support the proposal for consultation (Albert-Eden, Aotea / Great Barrier, Franklin, Henderson-Massey, Hibiscus and Bays, Manurewa, Maungakiekie-Tāmaki, Ōtara-Papatoetoe, Papakura, Rodney, Waitematā, and Whau local boards). Māngere-Ōtāhuhu, Ōrākei and Waiheke local boards prefer to stick to the current status quo Hybrid model. 26. Of the 15 local boards who gave feedback on their preferred method for kerbside refuse charging, eight local boards support a rates funded model (Albert-Eden, Franklin, Henderson-Massey, Howick, Manurewa, Ōtara-Papatoetoe, Waiheke, and Waitematā local boards), four supported a PAYT model (Devonport-Takapuna, Hibiscus and Bays, Papakura and Whau local boards) and three support a Hybrid model (Māngere-Ōtāhuhu, Ōrākei and Waiheke local boards). and should read as follows: 25. Of the 15 local boards who gave feedback on kerbside refuse charging policy review, 13 support the proposal for consultation (Albert-Eden, Aotea / Great Barrier, Franklin, Henderson-Massey, Hibiscus and Bays, Manurewa, Maungakiekie-Tāmaki, Ōtara-Papatoetoe, Papakura, Puketāpapa, Rodney, Waitematā, and Whau local boards). Māngere-Ōtāhuhu and Ōrākei local boards prefer to stick to the current status quo Hybrid model. 26. Of the 14 local boards who gave feedback on their preferred method for kerbside refuse charging, eight local boards support a rates funded model (Albert-Eden, Franklin, Henderson-Massey, Howick, Manurewa, Ōtara-Papatoetoe, Waiheke, and Waitematā local boards), four supported a PAYT model (Devonport-Takapuna, Hibiscus and Bays, Papakura and Whau local boards) and two support a Hybrid model (Māngere-Ōtāhuhu and Ōrākei local boards).
	Resolution number FIN/2021/102 MOVED by Chairperson D Simpson, seconded by Cr S Henderson: That the Finance and Performance Committee: a) consider input from local boards when making recommendations to the Governing Body on regional items to be consulted on for the Annual Budget 2022/2023. CARRIED UNANIMOUSLY

9	Tūpuna Maunga Authority Operational Plan 2022/2023
	Note: changes were made to the original recommendation, adding new clause b) as a chairperson’s recommendation.
	Resolution number FIN/2021/103 MOVED by Cr A Filipaina, seconded by Cr C Casey: That the Finance and Performance Committee: a) whakaae / agree to recommend to the Governing Body to tango / adopt the Draft Tūpuna Maunga Operational Plan 2022/2023 and a summary of the draft plan (for inclusion in the consultation material for the Annual Plan 2022-2023). b) tuhi / note that the draft Tūpuna Maunga Authority Operational Plan 2022/2023 does not seek any increase to the budget envelope previously approved in the council’s 10-year Budget 2021-2031. CARRIED
	Note: Pursuant to Standing Order 1.8.6, the following councillors requested their dissenting votes be recorded: · Cr S Stewart · Cr W Walker Note: Pursuant to Standing Order 1.8.3, Cr C Fletcher requested her abstention to be recorded.

Annual Budget 2022/2023: Mayoral Proposal items for consultation

Note: changes were made to the original recommendation by His Worship the Mayor, amending clause a) i) C) and adding new clause a) ii) D).

MOVED by Mayor P Goff, seconded by Chairperson D Simpson:

That the Finance and Performance Committee:

a) agree to recommend to the Governing Body that the Annual Budget 2022/2023 consultation document include the following items from the Mayoral Proposal:

i) a base budget package proposal based on the second year of the Recovery Budget 2021-2031 (10-year Budget), taking into account the continued impact of COVID-19 and current economic conditions, and:

A) maintaining the current capital investment profile over the next three years, noting that while the inflationary pressure may be partially mitigated by the natural slow-down caused by COVID-19 delays and supply chain constraints, this may require some deliberate deferrals of capital projects and programmes, with the intention that high and critical-risk projects are prioritised.

B) consulting on a set of draft expenditure prioritisation criteria (Appendix 1 in Attachment A) and applying the final criteria to implement $15 million of permanent cost reductions in the form of efficiency saving and low priority service reductions across the Auckland Council group in 2023/2024, growing to $30 million per annum from 2024/2025 onwards.

C) noting further operating cost reductions, capital deferrals and sale of non-strategic assets over the next three years may be required if further budget risks materialise.

D) increasing the average general rates by 3.5 per cent for 2022/2023 as planned.

ii) a proposed package of further climate action measures to reduce emissions and support adaptation, including:

A) over $1 billion expenditure over 10 years towards improving bus services, decarbonising ferry services, providing for walking and cycling, and increasing tree canopy cover in communities that need it most.

B) a Climate Action Targeted Rate (CATR) providing for $574 million over 10 years to fund the proposed climate action, with the remainder funded by government co-funding ($344 million) for transport activities and fare revenue ($127 million).

C) the targeted rate is proposed to be:

1) based on capital value, with 25.8 per cent to be raised from business properties and 74.2 per cent from non-business properties, rising by 3.5 per cent each year, the same as the Water Quality Targeted Rate.

2) differentiated within the business and non-business sectors on the same basis as the general rate.

D) note that Council has approved in principle a congestion charging system which is being considered for legislation by the Government, and that the Regional Fuel Tax and Climate Action Targeted Rate will be reviewed once it is clear what revenue will come from the congestion charge and when.

The meeting adjourned at 12.01pm and reconvened at 12.05pm.

Debate on the item commenced.

MOVED by Cr W Walker, seconded by Cr J Watson an amendment by way of addition:

That the Finance and Performance Committee:

b) request officers to prepare budget advice on the costs for improved retention and protection of existing tree canopy including street trees, notable trees and trees on private property with special emphasis on Special Ecological Areas, areas subject to protective covenants and the application of protective mechanisms such as the QE2 Trust.

c) request officers to prepare budget information on the cost of implementing behavioural change measures to achieve increased patronage of existing bus, ferry and train services, the increased use of existing cycling and walking infrastructure and the increased use of car-sharing and T2 and T3 lanes.

Note: After discussion, the mover and seconder agreed that the amendment was more relevant to Item 11 - Annual Budget 2022/2023: Budget Update and withdrew it from this item.

MOVED by Cr G Sayers, seconded by Cr J Watson an amendment by way of addition to clause a) ii):

E) that there be an option provided in the consultation document for the Climate Action programme to be funded through the general rate, and other funding tools, with the reprioritisation of capital and operational budgets over the next decade.

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

For

Cr C Fletcher

Cr T Mulholland

Cr G Sayers

Cr S Stewart

Cr J Watson

Against

Cr J Bartley

IMSB Member R Blair

Cr C Casey

Deputy Mayor BC Cashmore

Cr E Collins

Cr P Coom

Cr L Cooper

Cr A Dalton

Cr C Darby

Cr A Filipaina

Mayor P Goff

Cr S Henderson

Cr R Hills

Cr D Newman

Chairperson D Simpson

IMSB Chair D Taipari

Cr W Walker

Cr P Young

Abstained

The motion was declared lost by 5 votes to 18.

Debate on the substantive motion continued.

Resolution number FIN/2021/104

MOVED by Mayor P Goff, seconded by Chairperson D Simpson:

That the Finance and Performance Committee:

a) agree to recommend to the Governing Body that the Annual Budget 2022/2023 consultation document include the following items from the Mayoral Proposal:

C) noting further operating cost reductions, ~~and~~ capital deferrals and sale of non-strategic assets over the next three years may be required if further budget risks materialise.

D) increasing the average general rates by 3.5 per cent for 2022/2023 as planned.

ii) a proposed package of further climate action measures to reduce emissions and support adaptation, including:

C) the targeted rate is proposed to be:

2) differentiated within the business and non-business sectors on the same basis as the general rate.

CARRIED UNANIMOUSLY

The meeting adjourned at 2.28pm and reconvened at 3.05pm.

Note: a roll-call was conducted that ascertained the following members were in attendance at the commencement of the meeting:

Mayor P Goff	ü	Cr C Fletcher	ü
Deputy Mayor BC Cashmore	ü	Cr S Henderson	ü
Cr J Bartley	ü	Cr R Hills
IMSB Member R Blair	ü	Cr T Mulholland	ü
Cr C Casey	ü	Cr D Newman	ü
Cr E Collins	ü	Cr G Sayers	ü
Cr P Coom	ü	Cr S Stewart	ü
Cr L Cooper	ü	Cr W Walker	ü
Cr A Dalton	ü	Cr J Watson
Cr C Darby	ü	IMSB Chair D Taipari
Cr A Filipaina	ü	Cr P Young	ü

11	Annual Budget 2022/2023: Budget Update
	Cr R Hills returned to the meeting at 3.08pm. Cr J Watson returned to the meeting at 3.08pm. IMSB Chair D Taipari returned to the meeting at 3.12pm. IMSB Member R Blair left the meeting at 3.37pm.
	The meeting adjourned at 3.40pm and reconvened at 3.45pm.
	MOVED by Chairperson D Simpson, seconded by Cr S Henderson: That the Finance and Performance Committee: a) receive the report b) note that the work to achieve increased public transport patronage and mode shift through behavioural change measures is progressing as part of the Transport Emissions Reduction Plan (to be reported back to committee in 2022) and that $9m is set aside in the proposed climate action targeted rate to contribute to this.

	Extension of Time
	At 3.58pm, it was:
	Resolution number FIN/2021/105 MOVED by Chairperson D Simpson, seconded by Cr P Coom: That the Finance and Performance Committee: a) agree to grant an extension of time to allow the business of the meeting to be complete. CARRIED

	Debate on the item commenced.
	IMSB Member R Blair returned to the meeting at 3.59pm. Cr D Newman left the meeting at 4.01pm.
	Resolution number FIN/2021/106 MOVED by Chairperson D Simpson, seconded by Cr S Henderson: That the Finance and Performance Committee: a) receive the report b) note that the work to achieve increased public transport patronage and mode shift through behavioural change measures is progressing as part of the Transport Emissions Reduction Plan (to be reported back to committee in 2022) and that $9m is set aside in the proposed climate action targeted rate to contribute to this. CARRIED
	Note: Pursuant to Standing Order 1.8.6, Cr Cooper requested dissenting vote against clause b), be recorded.

IMSB Chair D Tairpari returned to the meeting at 4.11pm.

12	Annual Budget 2022/2023: Kerbside refuse charging policy review
	Cr D Newman returned to the meeting at 4.42pm.
	Note: changes were made to the original recommendation, adding new clauses b) and d), with the agreement of the meeting.
	Resolution number FIN/2021/107 MOVED by Cr R Hills, seconded by Deputy Mayor BC Cashmore: That the Finance and Performance Committee: a) agree to recommend to the Governing Body that it agree that the consultation on the draft Annual Budget will include a statement of proposal for consultation on amendments to Te Mahere Whakahaere me te Whakaiti Tukunga Para i Tāmaki Makaurau - the Auckland Waste Management and Minimisation Plan 2018 for a move to a region wide rates-funded refuse collection service with a choice of three bin sizes to accommodate different household needs b) note that any draft consultation material including the consultation question on the proposed changes to the kerbside policy should allow for Aucklanders to clearly identify their preference for either a region-wide rates funded collection system, or a region wide PAYT system c) note that section 44(e) of the Waste Minimisation Act 2008 requires that any amendment to the Waste Management and Minimisation Plan be consulted on using the special consultative procedure set out in section 83 of the Local Government Act 2002 and that the most recent waste assessment undertaken by the council be notified with the statement of proposal (which will be included in the annual plan consultation materials). d) request officers to prepare advice on the costs, including carbon accounting, for the implementation of incentives for homes and businesses to deal with food scraps in onsite property systems, such as worm farms, as a complementary measure to the food scraps collection programme to be reported back to a future meeting of the Environment and Climate Change Committee in 2022/2023. CARRIED UNANIMOUSLY

Annual Budget 2022/2023: Other Rates and Fees Matters

Staff advised there was an error /errors in the Animal management fees section in the Attachment C: Fees and charges change proposal to the Annual Budget 2022/23 Other rates and fees report as follows:

Currently reads as follows:

· responsible dog owner licence (where paid before 1 August) will decrease from $67 to $65

· responsible dog owner fee for a single dog reduces from $77 to $76.

and should read as follows:

· responsible dog owner licence - desexed dogs (where paid before 1 August) will decrease from $67 to $65

· responsible dog owner fee for an entire dog reduces from $77 to $76.

Resolution number FIN/2021/108

MOVED by Chairperson D Simpson, seconded by Cr C Casey:

That the Finance and Performance Committee:

a) agree to recommend to the Governing Body that it consult as part of the Annual Budget 2022/2023 on the targeted rate to fund the extension of the food scraps collection service to the following areas from March 2023, to be applied to all residential SUIPs to which the service is made available:

i) the former Waitākere City Council area

ii) the former North Shore City Council area excluding those where the service is already available.

b) agree to recommend to the Governing Body that it consult as part of the Annual Budget 2022/2023 on the standardisation of charging for the waste management targeted rates as set out below:

i) allowing residential multi-unit developments across Auckland with ten or more units to opt out of council’s refuse, recycling and/or food scraps services and respective targeted rate charges where the service(s) cannot be provided by the council as per the standards specified in Attachment A of this report, effective from 1 July 2023 with the exception of ii) below

ii) maintaining the existing opt-out arrangements for multi-unit developments within the former Auckland City Council area where:

1) an approved opt-out as per the current policy is already in place, or

2) an application for opt-out as per the current policy is received by the council on or before 30 June 2022

iii) applying the waste management targeted rates on a per separately used or inhabited part of a rating unit (SUIP) basis to all residential and lifestyle properties with less than ten SUIPs across Auckland where a service is provided or available, effective from 1 July 2022 with the exception of iv) below

iv) maintaining the number of waste management targeted rate charges as per the current policy for the following multi-SUIP properties with less than ten SUIPs within the former Auckland City Council area, until the property changes owners:

1) properties with a residential or lifestyle land use that are already receiving fewer waste management targeted rate charges than their number of SUIPs

2) properties with a residential or lifestyle land use that request to reduce their number of charges on or before 30 June 2022

v) allowing all properties with a land use that is not residential or lifestyle to opt out of the standard refuse and/or the recycling service and respective targeted rate charges at their request, effective from 1 July 2023

vi) applying a minimum targeted rate charge to cover the costs of council’s regional initiatives including the annual inorganic collection, the resource recovery network and subsidy for providing affordable waste services on Hauraki Gulf Islands, to all eligible rateable SUIPs across Auckland that are not currently paying this minimum charge, effective from 2023/2024

c) agree to recommend to the Governing Body that it consult as part of the Annual Budget 2022/2023 on amending the rating policy to:

i) exclude rural zoned land on Waiheke from the Urban Rating Area

ii) clarify the rating of separate rating units used as an access way as residential properties.

d) agree to recommend to the Governing Body that it consult as part of the Annual Budget 2022/2023 on changes to fees and charges as set out in this report.

CARRIED

Annual Budget 2022/2023: Rating of Whenua Māori Changes to Financial Policies

Resolution number FIN/2021/109

MOVED by Cr A Dalton, seconded by Cr E Collins:

That the Finance and Performance Committee

a) whakaae / agree to recommend to the Governing Body that it whakaae / agree to consult alongside the draft Annual Budget 2022/2023 on amending the Revenue and Financing Policy to include:

i) “Our Obligations to Māori” as a funding principle

ii) consequential amendments for decisions made as part of the draft Annual Budget 2022/2023

iii) funding principles for the solid waste services activity.

b) whakaae / agree to recommend to the Governing Body that it whakaae / agree to consult alongside the draft Annual Budget 2022/2023 on amending the Māori Land Rates Remission and Postponement Policy to:

i) add an objective to support Māori ownership and use of Māori land and to support achievement of Kia Ora Tāmaki Makaurau (Māori Outcomes Framework) objectives

ii) clarify the definition of Māori land eligible for remission under the scheme

iii) remove the remission scheme for marae and urupā, noting that this scheme is redundant as these properties are now fully non-rateable

iv) introduce a rates remission scheme for Māori land under development

v) insert the remission for residents who occupy papakāinga housing under a licence to occupy scheme currently in the general Rates Remission and Postponement Policy.

c) whakaae / agree to recommend to the Governing Body that it whakaae / agree to consult alongside the draft Annual Budget 2022/2023 on amending the Rates Remission and Postponement Policy to:

i) add an objective to support Māori ownership and use of Māori land and to support achievement of Kia Ora Tāmaki Makaurau (Māori Outcomes Framework) objectives and correct legislative references in the background section

ii) clarify the definition of Māori land eligible for remission under the scheme

iii) remove the postponement of rates for land described as Lot 2 DP 476554 or Lot 2 DP 510763 scheme, noting this scheme expired on 30 June 2021

iv) remove the remission for residents who occupy papakāinga housing under a licence to occupy scheme, noting that this scheme is proposed to be included in the Māori Land Rates Remission and Postponement Policy instead.

CARRIED UNANIMOUSLY

15 Consideration of Extraordinary Items

There was no consideration of extraordinary items.

4.59pm The Chairperson thanked Members for their attendance and attention to business and declared the meeting closed.

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

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

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

Chairperson	Cr Desley Simpson, JP
Deputy Chairperson	Cr Shane Henderson
Members	Cr Josephine Bartley
	IMSB Member Renata Blair
	Cr Dr Cathy Casey
	Deputy Mayor Cr Bill Cashmore
	Cr Fa’anana Efeso Collins
	Cr Pippa Coom
	Cr Linda Cooper, JP
	Cr Angela Dalton
	Cr Chris Darby
	Cr Alf Filipaina
	Cr Christine Fletcher, QSO
	Mayor Hon Phil Goff, CNZM, JP
	Cr Richard Hills	From 10.08am, Item 8
	Cr Tracy Mulholland
	Cr Daniel Newman, JP
	Cr Greg Sayers
	Cr Sharon Stewart, QSM
	IMSB Chair David Taipari
	Cr Wayne Walker	From 10.04am, Item 7
	Cr John Watson
	Cr Paul Young