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MOVED by Mayor P Goff, seconded by Deputy Mayor BC
Cashmore:
That
the Finance and Performance
Committee:
a) agree
to recommend to the Governing Body that it agree to the Annual Budget
2022/2023, which is based on the updated consultation budget with $2.8
billion capital expenditure, $5.1 billion operating expenditure and a 3.5 per
cent increase in average general rate as planned, and includes:
i) a
package of further climate action 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 in communities which need it most.
B) a
Climate Action Targeted Rate providing for $574 million over 10 years to fund
climate action, with the remainder funded by $128 million in fare revenue
from additional services and $354 million in government co-funding.
C) applying
consistent principles for the Climate Action Targeted Rate programme to
determine further climate action if additional government funding becomes
available from the Climate Emergency Response Fund.
D) the
targeted rate is
1) based
on capital value with 25.8 per cent to be raised from business properties and
74.2 per cent from non-business, rising by 3.5 per cent each year, the same
as the Water Quality Targeted Rate.
2) is
differentiated within the business and non-business sectors on the same basis
as the general rate.
E) a
political governance and oversight group for the Climate Action Targeted Rate
be established for the duration of the fund to provide direction in line with
the purpose and principles of the targeted rate and to monitor and report on
progress.
F) 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 with a view to
phasing out the Regional Fuel Tax as revenue becomes available from the
congestion charge.
ii) a
grant of $750,000 to Coastguard New Zealand in the 2022/2023 financial year
and request acknowledgement of Auckland Council funding for coastguard
services in the Auckland region for the 2022/2023 year.
b) agree
to recommend to the Governing Body the following approach to addressing
growing operating cost pressures caused by COVID-19 and economic conditions
such as high inflation and interest rates, to ensure Auckland Council
continues to act in a financially prudent way, including fully funding
depreciation by 2027/2028.
i) note
that Auckland Council and council-controlled organisations will continue to
work to achieve savings and asset recycling targets included in existing
budgets and that the Value for Money programme and reviews will continue to
be progressed under the oversight of the Value for Money Committee.
ii) agree
to apply $127 million better-off funding from the Government in 2022/2023.
iii) agree
to defer $230 million of capital expenditure over the next three years
(2022/2023 – 2024/2025) while ensuring critical and high-risk projects
as well as projects strongly supporting growth and climate action are
maintained.
iv) agree
to approve the use and ongoing improvement of the prioritisation framework
consulted on and the general approach to service prioritisation.
v) agree
that staff begin investigating service optimisation opportunities of around
$30 million for consideration by the new Council as part of the Annual Budget
2023/2024.
vi) agree
that staff begin considering further cost reductions from service
prioritisation of around $50 million for decision-making by the new Council
as part of the 10-year Budget 2024-2034.
vii) agree
that staff report to the Value for Money Committee on scoping the strategic
opportunities for cost reductions.
viii) note
options available to the new Council to respond to future operating cost
pressures include varying degrees of capital deferrals, operating cost
reductions and higher rates settings.
ix) note
further opportunities associated with Three Water Reform and optimising
financial return from Ports of Auckland.
x) agree
to continue to advocate for the return of GST charged on rates to the
council, in alignment with previous submissions to the New Zealand Productivity
Commission and a Local Government New Zealand remit that was passed with 92
per cent support of the sector.
xi) note
that final decisions beyond 2022/2023 rest with the new Council in
consultation with the public as appropriate.
A division was
called for, voting on which was as follows:
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For
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
Chairperson D Simpson
IMSB Chair D
Taipari
Cr P Young
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Against
Cr C Fletcher
Cr T Mulholland
Cr D Newman
Cr G Sayers
Cr S Stewart
Cr W Walker
Cr J Watson
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Abstained
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The motion was
declared carried by 16
votes to 7.
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