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Waitematā
Local Board
10 May 2022
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Waitematā
Local Board consultation feedback and input into the Annual Budget 2022/2023
File No.: CP2022/05281
Te take mō te
pūrongo
Purpose of the report
1. To
receive consultation feedback from the Waitematā Local Board area on:
· proposed
priorities and activities for the Waitematā Local Board Agreement
2022/2023
· regional
topics for the Annual Budget 2022/2023.
2. To
recommend any local matters to the Governing Body for their consideration in
the Annual Budget 2022/2023 process.
3. To
provide input on the proposed regional topics in the Annual Budget 2022/2023.
Whakarāpopototanga matua
Executive summary
4. Local
board agreements set out annual funding priorities, activities, budgets, levels
of service, performance measures and initiatives for each local board area.
Local board agreements for 2022/2023 will be included in the council’s
Annual Budget 2022/2023.
5. Auckland Council publicly consulted from 28 February to 28 March
2022 to seek community views on the proposed Annual Budget 2022/2023.
This included consultation on the Waitematā Local Board’s
proposed priorities for 2022/2023 to be included in the local
board agreement.
6. Auckland Council received 11,500 pieces of feedback in total across the region and 659 submissions specific to
the Waitematā Local Board area.
7. A
summary of feedback from Waitematā submissions is provided below.
· 60%
of Waitematā submissions support all or some of the local board’s
priorities
· 74%
of Waitematā submissions support the proposed climate action targeted rate
· 43%
of Waitematā submissions support the budget package
· 40%
of Waitematā submissions support the operational spending prioritisation
· 57%
of Waitematā submissions support a move to a region-wide rates funded
refuse collection service
· Top themes from
comments include support for urgently acting to address climate change, support
for better active and public transport, support for finding alternative savings
than selling assets, and support for completing Ponsonby Park.
8. In the Annual Budget process there are financial matters where local
boards provide recommendations to the Governing Body, for consideration or
decision-making. This includes:
· any new/amended business improvement
district targeted rates
· any
new/amended local targeted rate proposals
· proposed
locally driven initiative capital projects outside local boards’
decision-making responsibility
· release
of local board specific reserve funds
· any
local board advocacy initiatives.
9. The
Governing Body will consider these items as part of the Annual Budget
decision-making process in June 2022.
10. Local boards have a statutory responsibility to provide
input into regional strategies, policies, plans, and bylaws. This report
provides an opportunity for the local board to provide input on the
council’s proposed Annual Budget 2022/2023.
Ngā tūtohunga
Recommendation/s
That the Waitematā Local
Board:
a) receive consultation feedback on the
proposed Waitematā Local Board priorities and
activities for 2022/2023
b) receive Waitematā Local Board
consultation feedback on regional topics in the Annual Budget 2022/2023 from
people and organisations
c) provide input on regional topics in the proposed Annual Budget
2022/2023 to the Governing Body
d) provide its advocacy initiatives for the Annual Budget 2022/2023 to the Governing Body.
Horopaki
Context
Local board
agreements
11. Each
financial year Auckland Council must have a local board agreement for each
local board area. As such Waitematā Local Board needs an agreement with
the Governing Body.
12. This
local board agreement sets out how the council will reflect the priorities in
the Waitematā Local Board Plan 2020 in respect of the local activities to
be provided in the Waitematā Local Board area. It also includes
information relating to budgets, levels of service, and performance measures.
13. The local
board agreements 2022/2023 will form part of the Auckland Council’s
Annual Budget 2022/2023.
14. Auckland
Council publicly consulted from 28 February to 28 March 2022 to seek community
views on the proposed Annual Budget 2022/2023, as well as local board priorities and proposed activities to be included in the
local board agreement 2022/2023.
15. Due to the
impacts of the ongoing COVID-19 global pandemic, significant pressure has been
placed upon the council’s financial position. This has created significant
flow on effects for the council’s proposed Annual Budget 2022/2023.
Tātaritanga me ngā
tohutohu
Analysis and advice
16. This report includes analysis of consultation feedback, any local
matters to be recommended to the Governing Body and seeks input on regional
topics in the proposed Annual Budget 2022/2023.
Consultation
feedback overview
17. As
part of the public consultation Auckland Council used a variety of methods and
channels to reach and engage a broad cross section of Aucklanders to gain their
feedback and input into regional and local topics.
18. In total, the council received 11,550 pieces of feedback in
the consultation period. This feedback was received through:
· written feedback – 9,464 online or hard copy forms,
emails or letters
· in person – 2,086 pieces of feedback through online
Have Your Say events, or independently managed phone interviews. All events
(except one which did not have any attendees) were moved to an online platform
or cancelled due to the red Covid-19 traffic light setting.
19. 659 submissions were received on Waitematā
Local Board’s priorities for 2022/2023. 602 of these 659 submissions
reported living in the Waitemata Local Board area.
20. Written feedback on regional topics were received from the
following mana whenua iwi:
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· Ngāti Te Ata
· Ngāti Whātua Ōrākei
· Ngaati Whanaunga
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· Makaurau Marae Māori Trust - Te Ahiwaru
· Te Rūnanga o Ngāti Whātua
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· Ngāti Tamaterā Settlement Trust
· Te Kawerau Iwi Tiaki Trust
· Ngāti Pāoa Iwi Trust Board
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21. Although none of these iwi groups referenced the Waitematā Local Board specifically, they are considered regional stakeholders.
Their answers to the region-wide questions are summarised in Attachment A.
Information on Waitematā Local Board submitters
22. 
The
tables and graphs below indicate the demographic categories people identified.
This information relates to the 659 submissions received on Waitematā Local Board priorities.
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Ethnicity
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Total
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Pākehā/NZ
European
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410
(62%)
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None given
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52
(8%)
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Other
European
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40
(6%)
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Chinese
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31
(5%)
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Pākehā/NZ
European, Māori
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21
(3%)
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Indian
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13
(2%)
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Other
Ethnicity
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12
(2%)
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Pākehā/NZ
European, Other European
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10
(2%)
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Southeast
Asian
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9
(1%)
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Latin
American
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6
(1%)
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Māori
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6
(1%)
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Pākehā/NZ
European, Chinese
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6
(1%)
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Samoan
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5
(1%)
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Five or less
includes “Other Asian”, “Korean”, “Middle
Eastern”, “Other Pasifika”, “Cook Islands
Māori” and “Tongan”
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23. The Waitematā Local Board also received submissions
from the following organisations:
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· Urban Auckland
· Academy Cinemas
· Heart of the City
· Bike Auckland
· Sport Auckland
· Wynyard Quarter Transport Management Association INC
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· Auckland City Centre Residents' Group
· Western Bays' Community Group
· Sustainable Business Network
· Westmere Physiotherapy Clinic
· The Community-Led Design Group for Ponsonby Park
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· Parnell Business Association
· Newmarket Business Association
· St Mary's Bay Association
· Summerset Group Holdings Limited
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24. A summary of submissions from organisations is provided
in Attachment B.
25. A copy of the Waitematā Local Board submissions was
provided to members for review at the 26 April 2022 workshop. All submissions
will be uploaded and made available to the public on the Auckland Council
website as soon as possible.
Feedback received on the Waitematā
Local Board’s priorities for 2022/2023
26. The Waitematā Local Board consulted on the following
priorities and initiatives:
· Priority 1: Addressing Climate change and protect our
natural environment
o planting trees to ensure we have an urban ngāhere
(forest)
o walking,
cycling and placemaking projects
o continuing
work to restore our streams
o providing
advice and making it easier to reduce emissions and waste.
· Priority
2: Māori outcomes
o explore
opportunities to support Māori initiatives and businesses
o enhance
staff resources to support the delivery of Māori outcomes.
· Priority
3: Local parks – improve and activate
o the
results from the diversity review of our parks will be informing our planning
o deliver
improvements to Heard Park, Point Erin Park and support community gardens.
· Priority
4: Continue to support response to homelessness
o support
community groups and initiatives in this space.
· Priority
5: Community Facilities
o detailed
design for the Leys Institute restoration
o activating
Myers Park and Albert Park cottages.
27.
Most
submitters (60 per cent) supported all priorities or most priorities as shown
in the below chart.
28. Consultation feedback on local board priorities will be
considered by the local board when approving their local board agreement on 21
June 2022. Local board key advocacy initiatives are to be considered in the
current report.
Comment themes
on priorities
29. 
Themes of note across the submission comments included:
• Not
supportive of targeted spending on Māori (37) – there are many
different ethnic groups why focus on one, too much emphasis, divisive,
discriminatory, suggest to “partner” instead
• Support
transportation spending (33) – repaving footpaths, street trees, bike
and bus lanes, bike parking, upgrading Hobson and Nelson Street, train to the
airport, reducing car traffic, cycle lanes for Ponsonby Road
• Support
environmental outcomes (30) – plant and protect native trees, more
green spaces and urban parks, reduce air pollution, provide community gardens,
stop cutting down trees
• Support
priorities (28) – align with what is important to the community,
improves people lives, good mix, ensuring a better future, positive
• Support
addressing climate change (19) – build resilience, accelerate faster,
should be greatest focus, urgent, impacts everyone, needs more concrete
outcomes
• Support
addressing homelessness (18) – practical, provide more support and
facilities, look after our vulnerable, support mental health
• Concerns
about affordability (15) – do not take on new projects, exorbitant,
do not increase rates, unnecessary spending, defer until expenses under
control, be more fiscally conservative
• Ponsonby
Park (13) – needs progress, eyesore, will have community benefits,
should continue to show support
• Anti-social
behaviour (10) – central city is dangerous, Hobson and Nelson Street
unsafe, theft along Grafton Street, cars with loudspeakers driving at night,
enhance security
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Leys Institute (8)
– fix, should be funded privately, get on with it, support seismic
strengthening
• Support
targeted spending on Māori (8) – should be central to all
decision-making, cannot make the best version of New Zealand without
• Not
council business (6) – homelessness, Māori outcomes and climate
change are central government issues
• General
dissatisfaction with council (5) – disconnect, community not heard
• Not
supportive of climate change (3) – will achieve nothing
• Do
not support local parks (3) – do not need improving, area better off
than others, Heard Park fine as is
• Other
(22) – more heritage and arts, invest in Parnell
Baths, fund Rose Road Pedestrian Plaza, not enough Chinese community
engagement, need to mention accessibility for disabled community, need more
influence over Auckland Transport, prioritise business growth, need proper
stormwater management, need new hospital
Overview of feedback received on
regional topics in the Annual Budget 2022/2023 from the Waitematā Local
Board area
30. The proposed Annual Budget 2022/2023 sets out Auckland
Council’s priorities and how to pay for them. Consultation on the
proposed Annual Budget asked submitters to respond to four key questions on:
1. Climate
2. Budget
Pressures
3. Operating
Spending Prioritisation
4. Waste
Service Standardisation.
31. The submissions received from the Waitematā Local
Board area on these key issues are summarised below, along with an overview of
any other areas of feedback on regional proposals with a local impact.
Key Question One: Climate
32. Aucklanders were asked about a proposed climate action
package which will be funded by a targeted rate. The climate action package
includes investments in low-carbon public transport, active walking, cycling
networks, and urban ngahere (forest) canopy cover.
33. This
is proposed to be funded through $574 million from a targeted rate over the
next 10 years with additional funding from government co-funding.
34.
The graph below gives an overview of the responses
from the Waitematā Local Board area.
Key themes on
Question One
35. 
Key themes of note across the feedback received included:
Question one (climate) comments –
485 submitters left comments
• Support climate package (169) –
climate change is an emergency, act now, most important issue, protect future
generations, our responsibility, necessary, good thing to do
• Support better active/public transport (130) – reduce emissions, mode shift, increase footpaths/cycleways,
support electric, cleaner air, ease congestion, harbour crossing for
non-vehicles
• Need to do more (106) – more tree
cover, subsidies for renewables, act faster, be more ambitious, invest now save
later
• Unaffordable (35) – already paying
too much, suffering from covid-impacts, businesses suffering, high cost of
living
• Find other revenue/savings (19) –
cut staff and salary, this is rates rise by stealth
• General dissatisfaction with council (16) – low trust, incompetent, lack of faith on how the money will
be spent
• Will have little effect on climate change (16), not a council issue
(12), stop investing in active/public transport (11)
Key Question Two: Budget Pressures
36. Aucklanders were asked about a range of levers proposed
to manage on-going budget pressures. Council is forecasting a budget shortfall
of $85 million for 2022/2023 compared to what was budgeted for in the 10-year
Budget 2021-2031. This is due to on-going impacts of COVID-19 on revenue and
growing inflationary pressure.
37. A range of levers are proposed to manage the budget
pressures including:
· using
the Government’s Better Off support package funding
· changing
the timing of some capital spending
· implementing
cost reductions in the form of efficiency savings and a potential reduction in
some services
· keeping
the previously agreed general rates increase of 3.5 per cent for 2022/2023
· continuing
work on the sale or long-term lease of non-strategic assets as required.
38.
The graphs below give an overview of the responses
from the Waitematā Local Board area.
Key themes on
Question Two
39. 
Key themes of note across the feedback received included:
Question two comments – 247
submitters left comments
• Find other revenue/savings (61) –
reduce payroll, reduce staff, tax the rich, cut unnecessary spending, wasting
money, council is inefficient
• Do not support sale of assets (40)
– Depends on which assets, can’t get them back once sold, short
term fix with long term damage, don’t sell green space
• Support budget levers (35) –
sensible, reasonable, practical
• Only invest in core/essential services (30) – not time to focus on “nice to haves” like cycle lanes
• Financial hardship (23) – covid
and inflation impacts, businesses struggling
• Rates are too high (19)
• General dissatisfaction with council (18) – inefficient, corrupt, bloated
• Support sale of assets (9) – should
also consider the sale of the port and airport shares
• Do not support (9) – now is not
the time to reduce services
40. Since consultation, further reduction in revenue caused
by the COVID-19 omicron outbreak and rising interest and inflation costs has
compounded budget pressures.
41. Local board chairs attended a Finance and Performance
Committee workshop outlining the increased pressures in April 2022 and a
briefing was held for all local board members.
Key Question Three: Operating Spending Prioritisation
42. Aucklanders were asked to provide feedback on a
proposal that would see council prioritise
operating spending to help manage on-going budget pressures. A set of criteria
to be used when making decisions about cost reductions, including those that
could reduce, stop or change some services, was proposed.
43. The proposal involves implementing $15
million of additional permanent cost reductions in the form of efficiency
saving and low-priority service reductions across the group in 2023/2024,
growing to $30 million per annum from 2024/2025 onwards.
44.
The graphs below give an overview of the responses
from the Waitematā Local Board area.
Key themes on
Question Three
45. 
Key themes of note across the feedback received included:
Question three
comments – 180 submitters left comments
• Don’t
know (33) – too general and vague, incomprehensible, what are the
specifics, not clear
• Prioritise/keep
services (30) – especially anything climate related
• Find
other revenue/savings (30) – reduce staff salary, increase rates,
sell carparks, targeted rate on luxuries
• Support
prioritisation (30) – sensible, prioritising is important,
don’t blow the budget
• Only
invest in core/essential services (21) – like libraries and rubbish,
not climate
• General
dissatisfaction with council (10)
• Do
not support (8)
• Don’t
prioritise/cut services (8) – cycle lanes are nice to haves
• Financial
hardship (5) – businesses hurting
Key Question Four: Waste Service Standardisation
46. Aucklanders were asked about a proposal to standardise waste services and charges
across Auckland. The proposal would involve a move to a region-wide rates
funded refuse collection service and see a choice of three bin sizes (with
different pricing for each) to accommodate different household needs.
47. Auckland Council are also proposing to
include standardising which properties can opt-out of waste management services
and charges across Auckland.
48. 
The graphs below give an overview of the responses from
the Waitematā Local Board area.
Key themes
Key themes on Question Four
49. 
Key themes of note across the feedback received included:
Question four comments – 280
submitters left comments
• Rates-funded more environmentally friendly (40)
– bins are reusable, PAYT system creates fly tipping/ illegal dumping
• PAYT
promotes waste minimisation (35) – Pay As You Throw Scheme encourages
responsibility for own waste, incentivises to have lower waste, can make one
bin last 3+ weeks
• Rates-funded
promotes waste minimisation (30) – limits users to a bin size, pay
more if you have more rubbish, no more wasteful tags, more council control over
waste produced
• Rates-funded
fairer (33) – standardisation is more consistent, efficient, and fair
• PAYT
fairer (19) – especially for those with minimal waste
• Food
waste collection (45) – three bins is too much, will increase vermin,
great for apartments without private composting, as long as can opt out, support not sending food waste to landfills
• Don’t want rates to increase as a result (10)
Question Six: other feedback
50. 
Aucklanders were asked what is important to them and if
they had any feedback on any other issues.
Question six comments
– 202 submitters left comments
• Better transport (29) – low traffic
neighbourhoods, roads and foot paths need urgent care, poor road signage,
closing downtown parking garage a mistake, more cycling and walkway
infrastructure needed, make Khyber Pass and Domain more pedestrian friendly, we
have enough roads, cycle path over Harbour Bridge, rural roads degrading, free
public transport, more free parking in Parnell, improve walkability of central
city, more services for those without cars
• Ponsonby
Park (27) – start Stage Two now
• Rates
(20) – increase at rate as house prices, raise by 10%, do not
increase, do not move to a region-wide rates system, keep as low as possible,
wait for any increases until economy is better, property rates are an
inequitable way of funding local government
• Climate
change action (18) – low emissions buses, disincentivise use of
private cars, more electric car charging points
• Fiscal
responsibility (17) – wages not keeping up, council should not be
adding to cost of living pressures, stop wasting money, lower staff salary,
spending out of control
• Action
on waste management (14) – more options for green waste, need underground
bins, clean sewage to ocean, more recycling bins, encourage schemes that
promote zero waste, more options for inorganic waste collection in the central
city
• Governance
concerns (13) – opposed to local boards having more decision-making
and funding power, too many local boards, Auckland Council needs more oversight
over Auckland Transport, local boards should have more power
• Anti-social
behaviour (11) – becoming increasingly more unsafe, especially in the
central city and Queen Street
• Trees
(8) – need more urban trees, stop cutting down trees, street planting
is vital
• Distrust
of Auckland Transport (7) – poorly managed, poor use of funding,
dysfunctional, ignore community input, not enforcing parking laws
• Tūpuna
Maunga Authority (7) – should not be allowed to cut down all exotic
trees, should be allowed to be autonomous in their planting for their own land
• Better
parks (4) – improve and activate, cleaner greener Auckland, make
improvements to Chamberlain Park
• Not
council business (2) – climate change not council business, too many
priorities
• Other
- Address the rats, be predator free, Erebus is totally wrong, ban e-scooters,
access to community noticeboard key, restore Hauraki Gulf
Marine Park, more consultation transparency needed
Recommendations on local matters
51. This report allows the local board to recommend local
matters to the Governing Body for consideration as part of the Annual Budget
process in June 2022. This includes:
· proposed
locally driven initiative capital projects outside local boards’ decision-making
responsibility
· release
of local board specific reserve funds
· local
advocacy initiatives.
Funding for Locally Driven Initiatives (LDI)
52. Local boards are allocated funding for locally driven
initiatives (LDI) annually to spend on local projects or programmes that are
important to their communities. Local boards have decision-making over the LDI
funds but need approval from the Governing Body where:
· operational
LDI funding is to be converted into capital LDI funding.
· the
release of local board specific reserve funds is requested, which are being
held by the council for a specific purpose.
· a
LDI capital project exceeds $1 million.
53. These
conditions do not apply to the Waitematā Local Board for the 2022/2023
financial year.
Local board advocacy
54. Local boards are requested to provide approved advocacy
initiatives which consider the consultation feedback. This allows the Finance
and Performance Committee to consider these advocacy items when making
recommendations on the Annual Budget 2022/2023 to the Governing Body in June
2022.
55. The advocacy initiatives approved by the local board will
be included as an appendix to the 2022/2023 Local Board Agreement.
Local board input on regional topics in
the Annual Budget 2022-2023
56. Local boards have a statutory responsibility for
identifying and communicating the interests and preferences of the people in
its local board area in relation to Auckland Council’s strategies,
policies, plans, and bylaws, and any proposed changes to be made to
them. This report provides an opportunity for the local board to provide
input on the council’s proposed Annual Budget 2022/2023.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
57. The decisions recommended in this report are part of the
Annual Budget 2022/2023 and local board agreement process to approve funding
and expenditure over the next year.
58. Projects allocated funding through this Annual Budget
process will all have varying levels of potential climate impact associated
with them. The climate impacts of projects Auckland Council chooses to progress
are all assessed carefully as part of council’s rigorous reporting
requirements.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
59. The Annual Budget 2022/2023 is an Auckland Council Group
document and will include budgets at a consolidated group level. Consultation
items and updates to budgets to reflect decisions and new information may include
items from across the group.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
60. The local board’s decisions and feedback are being
sought in this report. The local board has a statutory role in providing its
feedback on regional plans.
61. Local boards play an important role in the development of
the council’s Annual Budget. Local board agreements form part of the
Annual Budget. Local board nominees have also attended Finance and Performance
Committee workshops on the Annual Budget.
Tauākī whakaaweawe
Māori
Māori impact statement
62. Many local board decisions are of importance to and
impact on Māori. The Waitematā Local Board Plan 2020 lists as its
first outcome that Māori are empowered, and their culture is visible.
Local board agreements and the Annual Budget are important tools that enable
and can demonstrate the council’s responsiveness to Māori.
63. Ongoing conversations between the Waitematā Local
Board and Māori will assist to understand each other’s priorities
and issues. This in turn can influence and encourage Māori participation
in the council’s decision-making processes. There is a need to continue
to build relationships between local boards and iwi, and the wider Māori
community.
64. Analysis provided of consultation feedback received on
the proposed Annual Budget includes submissions made by mana whenua and the
wider Māori community who have interests in the rohe / local board
area.
65. Some projects approved for funding could have discernible
impacts on Māori. The potential impacts on Māori, as part of any
project progressed by Auckland Council, will be assessed appropriately and
accordingly as part of relevant reporting requirements.
Ngā ritenga
ā-pūtea
Financial implications
66. This report is seeking the local board’s decisions
on financial matters in the local board agreement that must then be considered
by the Governing Body.
67. The local board also provides input to regional plans and
proposals. There is information in the council’s consultation material
for each plan or proposal with the financial implications of each option
outlined for consideration.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
68. The council must adopt its Annual Budget, which includes
local board agreements, by 30 June 2022. The local board is required to make recommendations
on these local matters for the Annual Budget by mid May 2022 and present to the
Finance and Performance Committee on 25 May, to enable and support the
Governing Body to make decisions on key items to be included in the Annual
Budget on 7 June 2022.
Ngā koringa ā-muri
Next steps
69. The local board will approve its Local Board Agreement
and corresponding work programmes in June 2022.
70. Recommendations and feedback from the local board will be
provided to the Finance and Performance committee for consideration ahead of
that committee making recommendations to the Governing Body for decision.
71. The final Annual Budget 2022/2023 (including local board
agreements) will be adopted by the Governing Body on 29 June 2022.
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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Mana whenua submission summary
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21
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b⇩
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Organisation submission summary
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23
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Ngā kaihaina
Signatories
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Authors
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Maclean Grindell - Senior Local Board Advisor
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Authorisers
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Trina Thompson - Local Area Manager
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Waitematā
Local Board
10 May 2022
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Endorsing Business Improvement District
(BID) target rate grants for 2022/2023
File No.: CP2022/00316
Te take mō te
pūrongo
Purpose of the report
1. To
request the local board to recommend that the Governing Body sets the targeted
rates for the Heart of the City, Karangahape Road, Newmarket, Parnell,
Ponsonby, and Uptown Business Improvement District (BID) programmes for the
2022/2023 financial year.
Whakarāpopototanga matua
Executive summary
2. Business Improvement Districts (BIDs) are rohe within Tāmaki Makaurau where local business
and property owners have agreed to work together to improve their business
environment, promote economic resilience and attract new businesses and
customers.
3. Auckland
Council supports business associations operating BID programmes by collecting a
targeted rate from commercial properties within a defined geographic area. The
funds from the targeted rate are then provided by way of a BID grant to the
relevant business association.
4. Under
the Auckland Council shared governance arrangements, local boards are allocated
several decision-making responsibilities in relation to BID programmes. One of
these is to annually recommend BID targeted rates to the Governing Body.
5. Each
business association operating a BID programme sets the BID target rate grant
amount at its Annual General Meeting (AGM) when members vote to approve an
operational budget for the following financial year. This budget funds the
implementation of a business plan that delivers programmes based on each
BID’s strategic priorities.
6. With
the support of their members and based on approved business plans, five of the
six BID-operating business associations within the Waitematā Local Board
area proposed increases to their BID targeted rates for the 2022/2023 financial
year. They are Karangahape Road (up 5% to $480,070) Newmarket (up 3.5% to $1,812,099),
Parnell (up 6.5% to $969,150) Ponsonby (up 10% to $690,446) and Uptown (up 7.4% to $350,000).
7. Tāmaki
Makaurau’s largest business improvement district, Heart of the City,
proposed no change to its current figure of $4,782,614.
8. The
business associations operating BID programmes are incorporated societies that
are independent of the council. However, to sustain public trust and confidence in the
council, there needs to be a balance between the independence of the business
associations and the accountability for monies collected by a public sector organisation.
9. For
the council to be confident that the funds provided to the BIDs are being used
appropriately, the council requires the business associations to comply with
the Business Improvement District (BID) Policy (2016) (Kaupapa
Here ā-Rohe Whakapiki Pakihi), known as the BID
Policy.
10. The
council staff regularly monitor compliance with the BID Policy and this report
is part of an active risk management programme to minimise inappropriate use of
funds.
11. Staff
are satisfied the Heart of the City, Karangahape Road, Newmarket, Parnell, Ponsonby and Uptown business associations
sufficiently comply with the BID Policy.
12. Staff
propose the Waitematā Local Board receives this report and recommends to
the Governing Body the striking (setting) of the BID targeted rates sought by
the six business associations. Note: The Uptown BID boundary overlaps the Waitematā and Albert-Eden Local Board
areas.
13. After
the Annual Budget is approved, the council collects the targeted rate funds and
distributes them in quarterly BID grant payments, effective from 1 July 2022.
This will enable the business associations to
implement programmes that help ensure Waitematā businesses are
sustainable, innovative and prosperous, thereby supporting the economic
aspirations of the Waitematā Local Board Plan 2020.
14. Like all BID-operating business associations, Waitematā’s six BIDs will continue to play an important
role in supporting their members facing global
challenges including recovery from the impact of the pandemic and facilitating
local responses to the world’s climate change emergency with an
increased focus on sustainability.
Ngā tūtohunga
Recommendation/s
That the Waitematā Local
Board:
a) recommends to the Governing Body the setting of the targeted rates
for inclusion in the Annual Budget 2022/2023 for the following Business
Improvement District (BID) programmes:
i. $4,782,614 for Heart of the City Incorporated.
ii. $480,070 for Karangahape Road Business
Association Incorporated.
iii. $1,812,099 for Newmarket Business Association Incorporated.
iv. $969,150 for Parnell Business Association Incorporated.
v. $690,446 for Ponsonby Business Association Incorporated.
vi. $350,000
for Uptown Business Association Incorporated.
Horopaki
Context
BID programmes promote
economic well-being and collaboration with the council
15. The
Auckland Council Growth Model 2021-2051 reports Tāmaki Makaurau is
projected to include approximately 660,000 more people in the next 30 years.
This level of population growth presents challenges and opportunities for
Auckland’s city centre, town centres and commercial precincts.
16. Business Improvement Districts (BIDs) are rohe within Auckland where
local businesses and property owners have agreed to work together, with support
from the council, to improve their business environment, encourage resilience
and attract new businesses and customers.
17. The BID programme does not replicate services provided by the
council but channels the capabilities and knowledge of the private sector to
improve economic outcomes and achieve common goals.
18. BID
programmes provide the opportunity for the council group to support business
associations to seize on the opportunities from Auckland’s growth and
respond locally to changing economic conditions.
19. BID
programmes encourage collaboration to achieve greater local outcomes. They
provide a mechanism to enable local boards to engage with the business sector
in local town centres and business areas in a co-ordinated way.
BID programmess provide essential
support in building business resilience and aiding economic recovery
20. The
economy continues to be impacted by the flow-on effects from the COVID-19
pandemic and accompanying ‘traffic light’ framework, affecting the city centre, retail-based town centres and commercial
precincts.
21. BID
programme-operating business associations provide the local business leadership
required to help their members to mitigate some of the economic effects of the
pandemic through business resilience and recovery initiatives.
BID programmes are funded by a targeted
rate on business ratepayers within a set area
22. BID programmes are funded by a targeted rate applied to all
commercially rated properties within a designated area around the city centre,
town centre or commercial precinct.
23. Auckland Council supports business associations operating BID
programmes by collecting the targeted rates and providing these funds, in their
entirety, by way of a BID targeted rate grant to the relevant business association.
24. This revenue is paid to the business associations every quarter to
provide a regular and sustainable income stream to implement agreed work
programmes.
The BID Policy is the
mechanism to ensure accountability for BID targeted rate grants
25. Auckland
Council’s Business Improvement District (BID) Policy (2016) (Kaupapa Here ā-Rohe Whakapiki Pakihi)
ensures accountability for BID targeted rate funding and encourages good
governance and programme management.
26. The
policy outlines the principles behind the council’s BID programme;
creates the process for establishing, expanding, amalgamating, and
disestablishing a BID programme; determines rating mechanisms; prescribes
operating standards and guidelines; and sets accountability requirements.
Diagram A: From calculation to approval,
how the BID targeted rate is set.
The business association sets the BID
targeted rate grant amount to deliver its work programme
27. BID-operating business associations are provided with a rate
modelling spreadsheet to help with their budget decision-making. The
spreadsheet models any proposed changes to their current BID targeted rate
grant amount and, most importantly, how that influences the BID targeted rate
for everyone who will pay it. When weighing up a change to the BID targeted
rate grant amount, BIDs must consider what the local businesses and property
owners can afford.
28. Each
BID-operating business association prepares an annual business plan for the
following financial year that will deliver programmes based on their strategic
priorities and financial parameters.
29. The cost of
implementing that business plan is set out in an annual budget that the
BID’s board (governing committee) agrees will be recommended for approval
by the business association membership.
30. The
AGM provides the forum where members vote to approve the operational budget
and, in doing so, set the requisite BID target rate grant amount for the
following financial year.
Local boards are responsible for
recommending the BID targeted rate grant if a BID-operating business
association complies with the BID Policy
31. Under
the Auckland Council shared governance arrangements, local boards are allocated
several decision-making responsibilities in relation to BID programmes. One of
these is to annually recommend BID targeted rate grants to the Governing Body.
The local board should recommend the setting of the targeted rate if it is
satisfied that the BID-operating business association is sufficiently complying
with the BID Policy.
32. The
Waitematā Local Board approved a similar recommendation for the BID
programmes last year (resolution number WTM/2021/102), as did 17 other
local boards that have BID programmes operating in their rohe.
The Governing Body sets the BID grant
targeted rates when it approves the Annual Budget
33. The
recommendation in this report is put into effect with the Governing
Body’s approval of the Annual Budget 2022/2023 and its striking (setting)
of the targeted rates.
34. In
accordance with the provisions of the Local Government Act 2002 and the Local
Government (Rating) Act 2002, the Governing Body is authorised to make the
final decisions on what BID programme targeted rates, if any, to set in any
particular year or property (in terms of the amount and the geographic area to
be rated).
Tātaritanga me ngā
tohutohu
Analysis and advice
35. BID programmes are operated by independent business associations,
and their programmes and services are provided according to their
members’ stated priorities. In recognition of their independent status,
the BID Policy does not prescribe standards for programme effectiveness. That
is for the business association members to determine. Staff, therefore, cannot
base recommendations on these factors, but only on the policy’s express
requirements.
All six
business associations comply with the BID Policy
36. Staff are satisfied that the Heart of the City, Karangahape Road, Newmarket, Parnell,
Ponsonby and Uptown business associations have sufficiently met the
requirements of the BID Policy.
37. Staff require BID-operating business associations to provide to the
council the following documents, and stay in touch with their local board(s) at
least once a year:
· Current
strategic plan – evidence of achievable medium- to long-term
opportunities.
· Audited
accounts – assurance that the BID-operating business association is
managing its members’ BID targeted rate funds responsibly.
· Annual
report on the year just completed – evidence that programmes are
addressing priority issues that benefit BID targeted ratepayers.
· Business
plan for the coming year – detailed one-year programme with key
performance indicators, based on the strategic plan, to be resourced and
achieved.
· Indicative
budget for the following year – Auckland Council’s 10-year
Budget 2021-2031 requires targeted rates to be identified a year in
advance to inform the annual budget process which sets all rates.
· Board
Charter – establishes guidelines for effective board governance and
positive relationships between the association and its members.
· Annual
Accountability Agreement – certification that these requirements have
been met.
· Programme
Agreement – a good faith agreement between each BID-operating business
association and the council that sets basic parameters of the council-business
association relationship.
· AGM
minutes - provisional minutes of each business association’s 2021 AGM
meeting which contain the resolution, voted on by members, confirming the
proposed BID grant amount for the 2022/2023 financial year.
36. In
addition, BID-operating business associations must inform the council staff of
progress with other compliance requirements, including:
· Incorporated
Society registration of the business association along with all required
documents up to date and filed.
· Resolving
problems or issues, if any, that have an impact on the governance or operation
of the BID programme.
37. The BID Policy sets an annual compliance deadline of 10 March for
the information to be forwarded to the council. The table below summarises the
requirements for the six BIDs within the Waitematā Local Board area as of
10 March 2022.
Table 1: Business associations’ compliance with the
BID Policy as of 10 March 2022
|
Requirement
FY
2020/2021
|
|
|
|
|
|
|
|
Strategic
Plan
|
 2018-21
Suitable to guide annual plan 21/22
|
2017-22
|
2021- 2026
|
 2020-25
|
2019-23
|
2020-24
|
|
Audited
financials
|
|
|
|
|
|
|
|
Annual
Report
|
|
|
|
|
|
|
|
Business
Plan
|
|
|
|
|
|
|
|
Indicative
budget
|
|
|
|
|
|
|
|
Board
Charter
|
|
|
|
|
|
|
|
Annual
Accountability Agreement
|
|
|
|
|
|
|
|
Annual
meeting with local board
|
8 March 2022
|
22 Feb 2022
|
22 Feb 2022
|
22 Feb 2022
|
22 Feb 2022
|
22 Feb 2022
|
|
Programme
Agreement
|
valid to Oct 2022
|
valid to Nov 2022
|
valid to Nov 2022
|
valid to Nov 2023
|
valid to Nov 2023
|
valid to June 2023
|
|
Incorporated
society registration
|
|
|
|
|
|
|
|
2021
AGM provisional minutes
|
|
|
|
|
|
|
|
Resolving
problems or issues
|
Nothing to record
|
Nothing to record
|
Nothing to record
|
Nothing to record
|
Nothing to record
|
Nothing to record
|
38. As the Heart of the City, Karangahape Road, Newmarket, Parnell, Ponsonby and Uptown business associations
have met the requirements of the BID Policy, staff advise the local board to
recommend to the Governing Body the setting (striking) of the BID targeted rate
grants.
Five business associations increase
their BID grants, one maintains status quo
39. As shown in Table 2 below, five of the six BID-operating business
associations propose increases to their BID targeted rates for the 2022/2023
financial year.
40. Ponsonby
Business Association’s 10% ($62,767) increase takes its 2022/2023 BID
grant to $690,446.
41. Uptown
Business Association members voted for a 7.4% ($27,750) increase to set a new
BID targeted rate of $350,000 for the next financial year.
42. At
their 2021 AGM, Newmarket Business Association members
supported a 3.5% ($61,279) increase to raise the amount of $1,812,099 in 2022/2023.
43. Parnell Business Association members voted to raise its BID levy by
6.5%, or $59,150, to $969,150 in 2022/2023.
44. Karangahape Road Business Association’s 5% ($22,860) increase
will raise $480,070 in 2022/2023.
45. At its AGM, Tāmaki Makaurau’s largest business
improvement district, Heart of the City, proposed no change to its current
figure of $4,782,614.
A regional perspective
46. Across Tāmaki Makaurau’s 50 BID-operating business
associations, 26 increased their targeted rates - by between 1.6% and 10% - for
2022/2023 while 24 BIDs maintained the fiscal status quo.
Table 2: BID targeted rates comparison: 2022/2023 c.f.
2021/2022
|
BID
|
2022/2023
|
2021/2022
|
Increase / %
|
|
|
$4,782,614
|
$4,782,614
|
Nil
LAST INCREASED: 2019/2020
|
|
|
$1,812,099
|
$1,750,820
|
+$61,279 +3.5%
LAST INCREASED: 2020/2021
|
|
|
$969,150
|
$910,000
|
+$59,150 +6.5%
LAST INCREASED: 2020/2021
|
|
|
$480,070
|
$457,210
|
+$22,860 +5%
LAST INCREASED: 2021/2022
|
|
|
$690,446
|
$627,679
|
+$62,767 +10%
LAST INCREASED: 2021/2022
|
|
|
$350,000
|
$322,250
|
+$27,750 +7.4%
LAST INCREASED: 2021/2022
|
Tauākī whakaaweawe
āhuarangi
Climate impact statement
47. Through targeted rate-funded advocacy and activities, BID-operating
business associations promote and often facilitate environmental sustainability
programmes.
48. BID programmes can impact on climate change through initiatives such
as running carbon-reducing ‘shop local’ campaigns to transitioning
to energy-efficient lighting and championing waste reduction and recovery
programmes. Several BIDs are involved in this space within the rohe.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
49. Advocacy
is a key service provided by business associations and those with BID
programme-funded personnel are at a distinct advantage. The
BIDs ensure the views and ambitions of their members are shared with
elected representatives and staff across the council group, including CCOs,
regarding those plans, policies, projects and programmes that impact them.
50. The
BID-operating business associations work with Auckland Unlimited (AU) on
economic development initiatives, events and sustainability programmes.
51. The
BID-operating business associations also work constructively with both Eke
Panuku and Auckland Transport on often controversial proposals and projects.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
52. The local board’s views are most frequently expressed by its
appointed representative on the board of each BID-operating business
association. This liaison board member (or alternate) can attend BID board
meetings to ensure there is a direct link between the council and the operation
of the BID programme.
53. Each business association values its strong and enduring
governance-to-governance relationship with the Waitematā Local Board. The
contributions by the local board’s BID appointees, alternates and
economic development portfolio-holders have, for many years, promoted mutual
understanding, collaboration and aligned economic outcomes.
Visions,
plans aligned
54. Waitematā’s BIDs and
local board share a keen interest in the rohe and are ambitious for its future
and its people. They also share goals that include economic prosperity,
community identity, placemaking and pride.
55. The six BID programmes tangibly support the aspirations of the
Waitematā Local Board Plan 2020, best expressed in Outcome 6: Waitematā
businesses are innovative, sustainable and prosperous. From their constitutions to their activities, the BIDs
exist to enhance their business districts, promote resilience, and sustain the
economic viability of their targeted ratepaying members.
Local rohe, local funding, local benefit
56. Recommending that the Governing Body sets the targeted rates for the
Heart of the City, Karangahape Road, Newmarket, Parnell, Ponsonby, and Uptown
business associations means that these BID programmes will continue to be
funded from targeted rates on commercial properties in their rohe. They will
provide services in accordance with their members’ priorities as stated in
their strategic plans.
57. Several local boards, including Waitematā, provide additional
funding to local business associations, however accountability for any grants
is set by funding agreements between the local board and the business
association. Those contractual obligations are separate from the requirements
of the BID Policy and are not covered in this report.
Tauākī whakaaweawe
Māori
Māori impact statement
58. At
the 2018 Census, Māori represented 6.1% of the
population living in the Waitematā Local Board area, compared to
11.5% of Auckland. Individual business
associations may, through operating their BID programme, identify opportunities
for niche support or development of any Māori business sector in their
rohe.
Ngā ritenga
ā-pūtea
Financial implications
59. There are no
financial implications for the local board. Targeted rates for BID-operating
business associations are raised directly from commercial ratepayers in the
district and used by the business association for improvements within that
rohe. The council’s financial role is to collect the BID targeted rates
and pass them directly to the association every quarter.
60. The targeted rate is payable by the owners of the commercial
properties within the geographic area of the individual BID programmes.
In practice, this cost is often passed on to the business owners who occupy
these properties.
61. If the Governing Body agrees with the BID targeted rate grants
proposed by the local boards, the costs of grants will be met from the existing
operational budget.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
62. There are no direct financial
risks to the local board or the council that could result from this recommendation
to endorse the BID targeted rate grants for the six business
associations.
63. To sustain public trust and confidence in
the council, there needs be a balance between the independence of the
BID-operating business associations and the accountability for monies collected
by a public sector organisation.
64. The
rules and obligations of the BID Policy are intended to help minimise the
potential for business associations to misuse funds by requiring each BID to
plan for their intended use, report on its activities to its members and to
have its accounts audited.
65. The
council staff regularly monitor compliance with the BID Policy and this report
is part of an active risk management programme to minimise inappropriate use of
funds.
66. Economic
disruption created by the flow-on effects of the pandemics and ‘traffic
light’ lockdowns will continue to be felt in Auckland’s city
centre, town centres and business precincts. The BID programme is an
internationally proven approach to engage and empower local businesses. The six
Waitematā-based BID programmes are, through local board-backed business
resilience and recovery initiatives, helping their members to mitigate some of
the economic effects of the pandemic.
Ngā koringa ā-muri
Next steps
67. If the board supports this report, it will recommend to the
Governing Body that the BID targeted rates be set as part of the Annual Budget
2022/2023.
68. After the Annual Budget is
approved, the council collects the targeted rate funds and distributes them in
quarterly BID targeted rate grant payments, effective from 1 July 2022. This
will enable them to implement programmes that improve the local business
environment, support businesses to recover from the COVID-19 pandemic and help
address the climate change emergency through sustainability initiatives.
Ngā tāpirihanga
Attachments
There are no attachments for
this report.
Ngā kaihaina
Signatories
|
Authors
|
Claire Siddens - Principal Advisor
|
|
Authorisers
|
Alastair Cameron - Manager - CCO Governance &
External Partnerships
Trina Thompson - Local Area Manager
|
