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Finance and
Performance Committee
08 February
2022
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Annual
Budget 2022/2023: Adoption of consultation material
File No.: CP2022/00192
Te take mō te
pūrongo
Purpose of the report
1. To
recommend to the Governing Body adoption of the Consultation
Document and Supporting Information for the Annual Budget 2022/2023.
Whakarāpopototanga
matua
Executive summary
2. All
councils are required by legislation to adopt an annual plan every year (except
once every three years when the long-term plan acts as the annual plan). We
refer to Auckland Council’s annual plan as the annual budget and its
long-term plan as the 10-year budget.
3. The
process to develop council’s annual budget began with the mayor’s
direction setting which was provided at a workshop in September 2021.
4. Local
boards held workshops and meetings in November and December 2021 to approve
their local consultation content.
5. The
Tūpuna Maunga Operational Plan must be prepared and adopted concurrently
with the council’s annual budget and must be included in summary form in
the annual budget consultation documentation. The Draft Tūpuna Maunga
Operational Plan 2022/2023 was approved by the Tūpuna Maunga Authority on
15 November 2021 and adopted by the Governing Body on 8 December 2021.
6. The
consultation material also includes a statement of proposal for the proposed
amendment to the Waste Management and Minimisation Plan 2018 (waste plan) to
meet the requirements of the special consultative procedure which is required
to be used when amending the waste plan, as agreed by the Governing Body on 8
December 2021.
7. Potential
changes to local board decision-making responsibilities have
been included in the consultation material for the Annual Budget 2022/2023 as
agreed by the Governing Body on 28 October 2021.
Ngā tūtohunga
Recommendation/s
That the Finance and Performance
Committee:
a) agree
to recommend to the Governing Body that it adopt the Supporting Information for
the Annual Budget 2022/2023, which includes a statement of proposal for the
proposed amendment to the council’s Waste Management and Minimisation
Plan 2018.
b) agree
to recommend to the Governing Body that it adopt the Consultation Document for
the Annual Budget 2022/2023, which includes a summary of the information
contained in the statement of proposal for the proposed amendment to the
council’s Waste Management and Minimisation Plan 2018.
c) agree
to recommend to the Governing Body that it delegate responsibility to the chair
of the Finance and Performance Committee, and the group chief financial officer
to approve any final edits required to the Consultation Document and Supporting
Information for the Annual Budget 2022/2023 in order to finalise the documents
for uploading online and physical distribution.
Horopaki
Context
8. All
councils are required by legislation to adopt an annual plan (also known as the
annual budget) every year (except once every three years when the long-term
plan acts as the annual plan). We refer to Auckland Council’s annual plan
as the annual budget and its long-term plan as the 10-year budget.
9. The
starting point for the budgets, priorities and funding envelopes for the Annual
Budget 2022/2023 is that set out in the second year of the current 10-year
budget. Any significant or material changes to the budget or service levels
from that set out in the 10-year budget require consultation.
10. Auckland
Council is also required to include local board agreements and the Tūpuna
Maunga Authority Operational Plan in summary form in its annual budget. The
proposed content of local board agreements and the summary of the Tūpuna
Maunga Authority Operational Plan must be included in annual budget
consultation material.
11. The
Consultation Document and Supporting Information includes the statement of
proposal for the proposed amendment to the waste plan and a summary of the
information in the statement of proposal to meet the requirements of the
special consultative procedure which is required to be used when amending the
waste plan.
Tātaritanga me ngā
tohutohu
Analysis and advice
Developing the annual budget
12. The
process to develop council’s annual budget began with the mayor’s
direction setting which was discussed at a Finance and Performance Committee
workshop in September 2021. From the direction setting, the following topics
were established as key areas of focus for the Annual Budget 2022/2023:
· Climate
action
· Waste
management
· Budget
package
· Financial
policy
13. Following
the mayor’s direction, workshops were held with the Finance and
Performance Committee between September and December 2021. Chairs and
representatives from each local board were invited to attend all workshops and
briefings on the annual budget during this time.
14. On
1 December 2021, the Finance and Performance Committee received the Mayoral
Proposal for consultation on the annual budget. On 8 December 2021 the Finance
and Performance Committee and the Governing Body considered this proposal and
agreed the items for consultation in the Annual Budget 2022/2023.
Developing local board agreements and
consulting on local issues
15. Each
year a local board agreement is developed for each local board that sets out
priorities, budgets and intended levels of service for local activities, and
the capital and operating expenditure required to fund these activities.
Local board agreements are agreed between each local board and the Governing
Body as part of the annual budget or 10-year budget process.
Developing the Draft Tῡpuna Maunga Operational Plan
2022/2023
16. Each
year the council and the Tūpuna Maunga Authority must agree a Tῡpuna Maunga Operational Plan to
provide a framework in which the council, under direction of the Tῡpuna Maunga Authority, will carry out
its functions for the routine management of the maunga and administered lands
for that financial year. The Tūpuna Maunga Operational Plan must be
prepared and adopted concurrently with the council’s annual plan and must
be included in summary form in the annual budget consultation documentation.
17. The Draft Tūpuna Maunga Operational Plan 2022/2023 has been
prepared and was approved by the Tūpuna Maunga Authority on 15 November
2021, which is consistent with year two of the 10-year budget. The Governing
Body adopted the Draft Tῡpuna
Maunga Operation Plan on 8 December 2021. A
summary of the Draft Tūpuna Maunga Operational Plan is included in the
Supporting Information.
Waste
18. On 8 December
2021 the Finance and Performance Committee received a report on the Kerbside
Refuse Charging Policy review in relation to potential changes to Te Mahere Whakahaere me te Whakaiti Tukunga Para
i Tāmaki Makaurau - the Auckland Waste Management and Minimisation Plan
2018 being included as part of consultation for the Annual Budget
2022/2023. The Finance and Performance Committee agreed to recommend this
approach to the Governing Body on the same day who adopted the following:
a)
whakaae / 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) tuhi
/ 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) tuhi
/ 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) tuhi
/ note the request for 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.
[Resolution GB/2021/155]
19. A statement
of proposal and notification of the most recent waste assessment have been
included in the Supporting Information to give effect to this resolution and to
meet the requirements in section 44(e) of the Waste Minimisation Act 2008,
including the requirement to use the special consultative procedure. A summary
of the statement of proposal is included in the Consultation Document.
Governance Framework Review
20. In 2017, as
part of the Governance Framework Review, the Governing Body resolved in
principle that local boards be given more flexibility of decision-making over
local operational funding and service levels.
21. The Joint
Governance Working Party (JGWP), which consists of six Governing Body members
and six local board members, was established as the vehicle to progress these
proposals.
22. On Thursday 28 October 2021, the Governing Body considered the
work overseen by the JGWP and agreed to:
a) support
the proposal to increase local board decision-making responsibilities to all
local community services within the funding envelope allocated to each local
board, including decisions on local service assets.
b) adopt
the proposed changes to local board decision-making responsibilities for public
consultation as part of the Annual Plan 2022-23.
c) note
that increasing local board decision-making will transfer responsibility for
most local community services decisions currently made by the Governing Body or
committees of the whole to local boards.
d) note
that most of these responsibilities can be conferred under existing policy by
removing operational constraints but that amendments to the Allocation of
Decision-making Responsibility Policy will be required through annual plan
consultation because decisions on local service assets are currently made by
the Governing Body.
[Resolution
GB/2021/137]
23. The proposed
changes to local board decision-making responsibilities
including proposed changes to the decision-making responsibilities of Auckland
Council’s Governing Body and local boards policy are included in the
Consultation Document and Supporting Information for the Annual Budget
2022/2023 to give effect to this resolution.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
24. Climate
action has been identified as a key topic for the Annual Budget 2022/2023 as
part of the Mayoral Proposal and decisions on items for consultation on 8
December 2021. As a result, climate change action is a focus for the
consultation material.
25. In order to
accelerate our response to the climate emergency and progress towards achieving
our emissions reduction targets set out in Te Tāruke-ā-Tāwhiri
– Auckland’s Climate Plan, the Consultation Document proposes
funding of $574 million from a climate action targeted rate over the next 10
years. This will fund a $1.045 billion climate action package (including
government funding and other sources) that includes:
· improving
transport choices for over one million Aucklanders who will be living within
500 metres of new and improved bus services
· moving
to low emission ferry services
· increasing
provision for walking and cycling
· increasing
tree canopy cover in communities that need it most.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
26. The
annual budget is an Auckland Council group document and will include budgets at
a consolidated group level.
27. Consultation
items and updates to budgets to reflect decisions and new information reflects
input from across the group.
28. Further
information and input will be sought from across the council group as the
Annual Budget 2022/2023 is finalised following public consultation.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
29. Local
board chairs and representatives were invited to all annual budget workshops
with the Finance and Performance Committee between September and December 2021.
30. Local
boards approved their local content for inclusion in the consultation material
in November and December 2021. This included the proposed key priorities for
each local board for 2022/2023, to be included in each local board
agreement.
31. Local
boards will continue to have input on the Annual Budget 2022/2023 following
consultation and prior to any final decisions made by Governing Body, including
as part of decision-making on each local board agreement.
Tauākī whakaaweawe
Māori
Māori impact statement
32. Targeted
engagement with mana whenua and mataawaka is being planned for the consultation
period, including pre-consultation workshops being held in February. Further
detail on the consultation approach is provided in another report on
today’s agenda.
33. Previous
consultation material has only included Te Reo Māori translations of headings
and sub-headings in the Consultation Document. For the Annual Budget 2022/2023,
Finance has worked with Ngā Mātārae to identify key areas of the
consultation material where greater inclusion of Te Reo Māori would
enhance accessibility and engagement with Māori and further our use of the
reo as an organisation.
34. Reporting
on the Annual Budget 2022/2023 submissions will take a new split view approach
to ensure that feedback from Māori entities is clear and distinct from
general population feedback.
Ngā ritenga
ā-pūtea
Financial implications
35. The
financial implications of proposed budget changes are set out in the documents
recommended for adoption.
36. The
annual budget is a statutory process which must be completed annually. The
council budget provides for the resourcing to deliver this project.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
37. Annual
budgets enable rates to be struck for the following financial year. Not
completing the Annual Budget 2022/2023 in accordance with statutory
requirements has the potential to impact on the ability to continue to deliver
the services and projects that Auckland needs.
38. At this stage
of the process, the key risks are compliance and timing. The legal team have
reviewed the consultation material for legislative compliance. Approval of the
Consultation Document and Supporting Information at this meeting will enable
the timetable for consultation and subsequent decision-making to be met.
Ngā koringa ā-muri
Next steps
39. Following
decisions today, all consultation material will be finalised for print and
distributed to libraries, service centres, local board offices and made
available online in time for the start of the consultation process on 28
February 2021.
40. The key steps for finalising the Annual Budget 2022/23 are:
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Annual Budget Timeline
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Date
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Public consultation period
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28
February 2022 –
28 March 2022
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Finance and Performance workshop – regional feedback is
reported back
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4
May 2022
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Finance and Performance workshop – local boards invited
to provide feedback and consider budget options
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25
May 2022
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Finance and Performance workshop – Mayoral Proposal
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1
June 2022
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Finance and Performance/Governing Body meetings –
decision making meeting
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7
June 2022
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Local boards - adopt local board agreements
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21
July 2022 –
24 July 2022
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Governing Body workshop – adoption of final Annual
Budget 2022/2023
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22
June 2022
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Governing Body meeting – adoption of final Annual Budget
2022/2023
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29
June 2022
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Ngā tāpirihanga
Attachments
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No.
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Title
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Page
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a⇩
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Consultation Document
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11
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b⇩
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Supporting Information
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103
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Ngā kaihaina
Signatories
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Author
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Tamsyn Matchett - Programme Manager
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Authorisers
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Ross Tucker - General Manager, Financial Strategy and
Planning
Peter Gudsell - Group Chief Financial Officer
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