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Resolution
number GB/2022/45
MOVED by Mayor P Goff, seconded by Cr D Simpson:
That
the Governing Body:
a) 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
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.
CARRIED
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