I hereby give notice that an ordinary meeting of the Finance and Performance Committee will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Thursday, 15 September 2022

10.00am

Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

 

Kōmiti ā Pūtea, ā Mahi Hoki /
Finance and Performance Committee

 

OPEN AGENDA

 

 

MEMBERSHIP

 

Chairperson

Cr Desley Simpson, JP

 

Deputy Chairperson

Cr Shane Henderson

 

Members

Cr Josephine Bartley

Mayor Hon Phil Goff, CNZM, JP

 

IMSB Member Renata Blair

Cr Richard Hills

 

Cr Dr Cathy Casey

Cr Tracy Mulholland

 

Deputy Mayor Cr Bill Cashmore

Cr Daniel Newman, JP

 

Cr Fa’anana Efeso Collins

Cr Greg Sayers

 

Cr Pippa Coom

Cr Sharon Stewart, QSM

 

Cr Linda Cooper, JP

IMSB Chair David Taipari

 

Cr Angela Dalton

Cr Wayne Walker

 

Cr Chris Darby

Cr John Watson

 

Cr Alf Filipaina, MNZM

Cr Paul Young

 

Cr Christine Fletcher, QSO

 

 

(Quorum 11 members)

 

 

 

Sandra Gordon

Kaitohutohu Mana Whakahaere Matua / Senior Governance Advisor

 

8 September 2022

 

Contact Telephone: (09) 890 8150

Email: sandra.gordon@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 


 


 

Terms of Reference

 

Responsibilities

 

The purpose of the committee is to:

 

a)     advise and support the mayor on the development of the Long-term Plan (LTP) and Annual Plan (AP)

b)     monitor the overall financial management and performance of the council parent organisation and Auckland Council group

c)     make financial decisions required outside of the annual budgeting processes.

 

The committee will establish an annual work programme outlining key focus areas in line with its key responsibilities, which include:

 

·        advising and supporting the mayor on the development of the LTP and AP for consideration by the Governing Body including:

o   local board agreements

o   financial policy related to the LTP and AP

o   setting of rates

o   preparation of the consultation documentation and supporting information, and the consultation process, for the LTP and AP

·        monitoring the operational and capital expenditure of the council parent organisation and Auckland Council Group, and inquiring into any material discrepancies from planned expenditure

·        approving the financial policy of the council parent organisation

·        establishing and managing a structured approach to the approval of non-budgeted expenditure (including grants, loans or guarantees) that reinforces value for money and an expectation of tight expenditure control

·        approve the council insurance strategy and annual insurance placement for Council

·        performance measures and monitoring

·        write-offs

·        acquisition of property in accordance with the LTP

·        disposals in accordance with the LTP

·        recommending the Annual Report to the Governing Body

·        funding for achieving improved outcomes for Māori.

 

Powers

 

(i)         All powers necessary to perform the committee’s responsibilities, including:

(a)        approval of a submission to an external body

(b)        establishment of working parties or steering groups.

(ii)        The committee has the powers to perform the responsibilities of another committee, where it is necessary to make a decision prior to the next meeting of that other committee.

(iii)       If a decision is a budgetary or financial decision that relates primarily to the Finance and Performance Committee responsibilities, the Finance and Performance Committee has the powers to make associated decisions on matters that would otherwise be decided by other committees. For the avoidance of doubt, this means that matters do not need to be taken to multiple committees for decisions.


 

(iii)       The committee does not have:

(a)        the power to establish subcommittees

(b)        powers that the Governing Body cannot delegate or has retained to itself (section 2)

 

Code of conduct

 

For information relating to Auckland Council’s elected members code of conduct, please refer to this link on the Auckland Council website - https://www.aucklandcouncil.govt.nz/about-auckland-council/how-auckland-council-works/elected-members-remuneration-declarations-interest/Pages/elected-members-code-conduct.aspx

 


 

Exclusion of the public – who needs to leave the meeting

 

Members of the public

 

All members of the public must leave the meeting when the public are excluded unless a resolution is passed permitting a person to remain because their knowledge will assist the meeting.

 

Those who are not members of the public

 

General principles

 

·          Access to confidential information is managed on a “need to know” basis where access to the information is required in order for a person to perform their role.

·          Those who are not members of the meeting (see list below) must leave unless it is necessary for them to remain and hear the debate in order to perform their role.

·          Those who need to be present for one confidential item can remain only for that item and must leave the room for any other confidential items.

·          In any case of doubt, the ruling of the chairperson is final.

 

Members of the meeting

 

·          The members of the meeting remain (all Governing Body members if the meeting is a Governing Body meeting; all members of the committee if the meeting is a committee meeting).

·          However, standing orders require that a councillor who has a pecuniary conflict of interest leave the room.

·          All councillors have the right to attend any meeting of a committee and councillors who are not members of a committee may remain, subject to any limitations in standing orders.

 

Independent Māori Statutory Board

 

·          Members of the Independent Māori Statutory Board who are appointed members of the committee remain.

·          Independent Māori Statutory Board members and staff remain if this is necessary in order for them to perform their role.

 

Staff

 

·          All staff supporting the meeting (administrative, senior management) remain.

·          Other staff who need to because of their role may remain.

 

Local Board members

 

·          Local Board members who need to hear the matter being discussed in order to perform their role may remain.  This will usually be if the matter affects, or is relevant to, a particular Local Board area.

 

Council Controlled Organisations

 

·          Representatives of a Council Controlled Organisation can remain only if required to for discussion of a matter relevant to the Council Controlled Organisation.

 

 


Finance and Performance Committee

15 September 2022

A picture containing logo

Description automatically generated

 

ITEM   TABLE OF CONTENTS            PAGE

1          Apologies                                                                                                           9

2          Declaration of Interest                                                                   9

3          Confirmation of Minutes                                                                                   9

4          Petitions                                                                                          9  

5          Public Input                                                                                     9

6          Local Board Input                                                                           9

7          Extraordinary Business                                                               10

8          Presentation from Eden Park Trust Board                                11

9          Early engagement in the 2023/2024 statutory entity levy funding processes                                                                       15

10        Statement of Investment Policy and Objectives for the Self-Insurance Fund                                                                             27

11        Asset recycling disposal recommendation - 33B (part) Brandon Road, Glen Eden; 17 Erson Avenue, Royal Oak; and 2 Levene Place, Mount Wellington                                             43

12        Adjacent 176 Princes Street West, Pukekohe - s138 Local Government Act 2002 consultation                                           53

13        Movements in asset recycling property portfolio                    65

14        Preparation of the Auckland Council Group and Auckland Council quarterly performance reports to 30 June 2022         81

15        Preparation of the draft Auckland Council Annual Report 2021/2022 and draft Auckland Council Summary Annual Report 2021/2022                                                                          85

16        Summary of Finance and Performance Committee information memoranda and briefings, including the Forward Work Programme - 15 September 2022                                     91

17        Consideration of Extraordinary Items

PUBLIC EXCLUDED

18        Procedural Motion to Exclude the Public                                  99

C1       CONFIDENTIAL: Auckland Council Group and Auckland Council Quarterly Performance Report for the twelve months ending June 2022                                                                         99

C2       CONFIDENTIAL: Recommendation of the draft Auckland Council Annual Report 2021/2022 and draft Auckland Council Summary Annual Report 2021/2022                                           99


1          Apologies

 

At the close of the agenda no apologies had been received.

 

 

2          Declaration of Interest

 

Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.

 

 

3          Confirmation of Minutes

 

That the Finance and Performance Committee:

a)           confirm the ordinary minutes of its meeting, held on Tuesday, 26 July 2022, including the confidential section, as a true and correct record.

 

 

4          Petitions

 

At the close of the agenda no requests to present petitions had been received.

 

 

5          Public Input

 

Standing Order 7.7 provides for Public Input.  Applications to speak must be made to the Governance Advisor, in writing, no later than one (1) clear working day prior to the meeting and must include the subject matter.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.  A maximum of thirty (30) minutes is allocated to the period for public input with five (5) minutes speaking time for each speaker.

 

At the close of the agenda no requests for public input had been received.

 

 

6          Local Board Input

 

Standing Order 6.2 provides for Local Board Input.  The Chairperson (or nominee of that Chairperson) is entitled to speak for up to five (5) minutes during this time.  The Chairperson of the Local Board (or nominee of that Chairperson) shall wherever practical, give one (1) day’s notice of their wish to speak.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.

 

This right is in addition to the right under Standing Order 6.1 to speak to matters on the agenda.

 

At the close of the agenda no requests for local board input had been received.

 


 

 

7          Extraordinary Business

 

Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

 

“An item that is not on the agenda for a meeting may be dealt with at that meeting if-

 

(a)        The local  authority by resolution so decides; and

 

(b)        The presiding member explains at the meeting, at a time when it is open to the public,-

 

(i)         The reason why the item is not on the agenda; and

 

(ii)        The reason why the discussion of the item cannot be delayed until a subsequent meeting.”

 

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

 

“Where an item is not on the agenda for a meeting,-

 

(a)        That item may be discussed at that meeting if-

 

(i)         That item is a minor matter relating to the general business of the local authority; and

 

(ii)        the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but

 

(b)        no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”


Finance and Performance Committee

15 September 2022

 

Presentation from Eden Park Trust Board

File No.: CP2022/12796

 

  

 

Te take mō te pūrongo

Purpose of the report

1.      To provide a further opportunity for the Eden Park Trust Board (which is partially funded by Auckland Council) to present to the committee on its performance and financial projections. Their last appearance before the committee was on 17 March 2022.

2.      To provide a further update on progress against the resolutions of this committee from 19 March 2019 (FIN/2019/24, FIN/2019/25, FIN/2019/26 and FIN/2019/27).

Whakarāpopototanga matua

Executive summary

3.      The Finance & Performance Committee agreed to provide the Eden Park Trust Board with funding on 19 March 2019 (Resolutions FIN/2019/24, FIN/2019/25, FIN/2019/26 and FIN/2019/27) as follows:

a)      authorise and delegate all necessary powers to the chief executive to:

i)       reach an agreement with Eden Park Trust and ASB Bank for Auckland Council to take over the $40 million loan from ASB Bank to Eden Park Trust together with other facilities provided by ASB Bank to Eden Park Trust before 30 September 2019.

ii)       reach an agreement with Eden Park Trust to consolidate the loans acquired from ASB Bank and Auckland Council loans into one or more new facilities on commercial terms including:

A)      first-ranking security over Eden Park Trust’s assets

B)      a term of up to ten years

C)      an interest rate set at council’s cost of funds plus a margin.

b)      authorise the chief executive to agree a grant to fund capital expenditure of up to $9.8 million over a three-year period from 1 July 2019 under a Development Funding Agreement.

c)       agree that the chief executives of Auckland Council, Eden Park Trust and Regional Facilities Auckland jointly prepare an operational partnering proposal to be completed by March 2020.

d)      invite Eden Park Trust Board to report to the Finance and Performance Committee on at least a six-monthly basis to outline its performance and financial projections.

e)      initiate discussions with the Government to seek amending the Eden Park Trust Deed to appropriately align the governance of Eden Park with funding.

4.      In accordance with clause d), representatives of the Eden Park Trust Board will attend the meeting.


 

Update on previous resolutions

5.      Resolution a) – Loan: Auckland Council took over ASB Bank loans and facilities to Eden Park Trust:

a)      On 30 September 2019, Auckland Council took over ASB Bank loans and facilities to Eden Park Trust by paying ASB Bank $40 million (the par value of all amounts outstanding from Eden Park Trust to ASB Bank as at 30 September 2019) and consolidating $6.5 million of existing council loans into one $54 million revolving facility with a drawn loan balance of $46.5 million.

b)      In September 2020 council agreed to grant Eden Park Trust a waiver on its financial covenant relating to the loan from council until 31 January 2021.  In simple terms the financial covenant states that the ratio of EBITDA (earnings before interest, tax, depreciation and amortisation) to interest for the financial year in question will be equal to or greater than 1:1. The waiver is similar to what other lenders have agreed to in similar situations where the revenue of a business has fallen significantly due to the impacts of COVID-19, and was granted due to the impact that COVID-19 was having on Eden Park’s business (mainly in the form of reduced revenue). The impact of COVID-19 was making it highly possible that Eden Park would be unable to meet this covenant.

c)       Since that time, the council has agreed to extend the waiver three times on the same grounds as the initial waiver. The most recent of these follows a request from the Eden Park Trust Board on 20 May 2022 for a further extension from 1 November 2022 through to 31 October 2023 due to ongoing uncertainty over COVID-19 lockdown restrictions on their activities. This request was agreed to on 24 May 2022. As at their most recent reporting date (30 April 2022), the Eden Park Trust Board were complying with the covenant so were not reliant on the waiver.

d)      Council will continue to monitor the situation in conjunction with the Eden Park Trust.

e)      Eden Park’s loan balance as at 31 August 2022 was $48.75 million, as it was at the end of February 2022. The maximum amount that may be borrowed under the facility at any point in time is $54 million.

f)       Eden Park Trust made a submission to the draft Annual Budget 2022/2023 requesting $6.28 million of grant funding for the 2022/2023 financial year and ongoing. The Governing Body considered that request at its 23 June 2022 meeting and resolved to forgive interest payments until 30 June 2023 on any additional loan drawdown by Eden Park Trust whilst Eden Park Trust and the council group, through Tātaki Auckland Unlimited, continue to work on a single-stadium operating model for the city’s stadiums (GB/022/56).

g)      To date, there have been no additional loan drawdowns under this arrangement.

h)      Eden Park Trust continues to pay interest on the loan.

6.      Resolution b) – Funding: A Development Funding Agreement was executed with Eden Park Trust in late 2019.

a)      A total of $9,797,985 was released to Eden Park Trust before 30 June 2022 in accordance with the development funding agreement for a new turf and protection and maintenance equipment; a video replay screen; turnstiles and hand scanners; cyber security; point of sale; entry-point LED screens for public notifications; and electrical, facilities, lifts and stadium lighting upgrades.

b)      Eden Park Trust have advised that all projects have been completed with the exception of the stadium lights and entry-point LED screens projects but confirmed that no further funds are sought from council in relation to these projects.


 

7.      Resolution c) – Operational Partnering Proposal and resolution e) Governance:

c)       The CCO review findings were released in August 2020. The recommendations included a merger of Regional Facilities Auckland Limited (RFAL) and Auckland Tourism, Events and Economic Development (ATEED) and that “The merged entity explores, at the council’s direction, the critical need for joint management and operation of the city’s four stadiums with the Eden Park Trust.”

d)      A confidential workshop was held on 7 July 2021 with the CCO Oversight Committee to discuss how Tātaki Auckland Unlimited should progress work with the Eden Park Trust Board and on stadiums. A further three confidential workshops have been held (September and December 2021 and May 2022) to provide progress updates with the work programme and seek feedback on key aspects.

e)      Tātaki Auckland Unlimited will continue to progress this work with the Eden Park Trust Board, and other stakeholders and intends to engage with the new council on this in November/December 2022.

8.      Resolution d) – Eden Park reporting to Finance & Performance Committee: the Eden Park Trust Board previously presented to this committee on 17 March 2022 and will present to the committee at this meeting. This reporting is to continue on at least a six-monthly basis.

Eden Park Trust Board presentation

9.      The Eden Park Trust Board continue to comply with their reporting obligations to the council. They provided their annual report on 28 January 2022 and continue to provide their quarterly compliance reports.

10.    In accordance with resolution d), representatives of the Eden Park Trust Board will attend the meeting. They will present high level financial information, recent highlights, the impact of COVID-19 and their ongoing engagement with Auckland Unlimited.

11.    Prior to the meeting, council finance staff will consider the presentation and raise any risks or issues with the committee at the meeting.

 

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a)      thank the representatives of the Eden Park Trust Board for their attendance and the information provided.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.      

Ngā kaihaina

Signatories

Authors

John Bishop - Group Treasurer

Kerri Foote - Executive Officer: Chief Financial Office Division

Authoriser

Peter Gudsell - Group Chief Financial Officer

 

 


Finance and Performance Committee

15 September 2022

 

Early engagement in the 2023/2024 statutory entity levy funding processes

File No.: CP2022/09944

 

  

 

Te take mō te pūrongo

Purpose of the report

1.      To agree:

·      a set of proposed general and entity-specific messages to inform early engagement in 2023/2024 levy funding processes with Auckland War Memorial Museum (AWMM), Museum of Transport and Technology (MOTAT) and Auckland Regional Amenities Funding Board (ARAFB)

·      the inclusion of the annual statutory levies paid by the council to these three entities as additional information on the council’s annual rates notices.

Whakarāpopototanga matua

Executive summary

2.      Council is the main funder of AWMM, MOTAT and ARAFB through levy requests which are enabled through legislation specific to each entity. For the 2022/2023 financial year these statutory levies total $67.8 million (or 3.4 per cent of general rates).

3.      Notwithstanding the positive relationships that exist between the council and these entities, the council has few tools for accountability and performance monitoring of these entities. There is also an opportunity to improve outcomes by fostering an enhanced partnership with the entities and providing clear expectations.

4.      The timeframes and steps for the annual funding processes are set through statute and precede the council’s consultation and decision-making on its budgets by some months. There are significant pressures on the council’s financial position, particularly from the 2023/2024 financial year and beyond. Adoption of the levies by the respective entity boards must occur by 30 April each year.

5.      This report seeks approval for the key general and entity-specific messages to inform early engagement in the 2023/2024 statutory funding processes with AWMM, MOTAT and ARAFB. This includes:

·    a general request that the entities take steps to improve their draft plan consultation processes to encourage more meaningful and productive engagement.

·    ARAFB: ensure that all amenities are meeting all the requirements of the Auckland Regional Amenities Funding Act 2008 (ARAFA) to remain amenities; and that the draft Funding Plan explains all significant increases, not just those with conditions or tagged for a specific purpose.

·    AWMM: ask for the maximisation of self-generated revenue; working closely with the council to establish a new funding process that provides better long-term financial and strategic certainty, including increasing the council understanding of the asset management planning process; and improved collaboration with the Auckland cultural heritage sector.

·    MOTAT: continues progressing its objective ‘to identify and develop new and existing commercial and other partnership opportunities that reduce reliance on the levy’; continue to provide progress updates on delivery of capital projects for which funding was provided, and continue to work in partnership with Tātaki Auckland Unlimited on its future role in the Western Springs precinct and potential for future integration.

6.      It is recommended that the council approves the inclusion of the annual statutory levies paid by the council to AWMM, MOTAT and ARAFB as additional information on the council’s annual rates notices. This could help increase awareness of the support that the council provides to these entities, help increase meaningful engagement with the entities’ consultation processes, and promote further awareness of the services and activities these entities provide.

7.      A cost-effective option and simple approach to this is outlined in the report. Staff will also work with the Finance and Communications teams to promote more public awareness of the funding the council provides to these three entities, the consultation processes these entities undertake and the services and activities they provide. This could occur through a number of channels (e.g. Our Auckland, the council’s planning documents, budget book etc.). 

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a)      note the timeframes for the annual funding processes for Auckland War Memorial Museum, Museum of Transport and Technology and Auckland Regional Amenities Funding Board as set by their respective legislation precede the council’s consultation and decision-making on its budgets by some months.

b)      note this report proposes initiatives to promote more awareness of the funding the council is required to provide Auckland War Memorial Museum, Museum of Transport and Technology and Auckland Regional Amenities Funding Board under specific legislation, support enhanced engagement of the public with the consultation processes these entities undertake and promote further awareness of the services and activities these entities provide.

c)      approve the proposed general and entity-specific messages set out in this report to inform early engagement in 2023/2024 levy funding processes with Auckland War Memorial Museum, Museum of Transport and Technology and Auckland Regional Amenities Funding Board.

d)      delegate to the Director Governance and CCO Partnerships the responsibility for finalising and formally communicating the general and entity specific messages based on the content of this report to the Auckland War Memorial Museum, Museum of Transport and Technology Board and the Auckland Regional Amenities Funding Board.

e)      approve the inclusion of the annual statutory levies paid by the council to the Auckland War Memorial Museum, Museum of Transport and Technology and Auckland Regional Amenities Funding Board as additional information on the council’s annual rates notices.

Horopaki

Context

8.      In April 2022, the Finance and Performance Committee (the committee) agreed the levy amounts to be paid to three statutory entities for the 2022/2023 financial year (AWMM, MOTAT and ARAFB). Under legislation specific to each entity, they can require an annual funding contribution from the council by way of levy.

9.      At the 24 April 2022 meeting the committee resolved (among other things):

j)       request that staff work closely with Auckland Museum, MOTAT, the Auckland Regional Amenities Funding Board and the specified Amenities under ARAFA to discuss 2023/2024 levies at an early stage of these respective processes

10.    This report responds to resolution j) by seeking to establish the key general and entity-specific messages to inform early engagement in the 2023/2024 statutory funding processes with AWMM, MOTAT and ARAFB.


 

11.    With some variations, the statutory entity levy process generally covers five stages as set by their respective legislation:

          i)   entities prepare draft annual plans (or funding plan in the case of ARAFB), containing indicative levy requests for that financial year

          ii)  entities undertake public consultation on their draft annual plans

          iii) entities submit final draft annual plans to the council (February)

          iv) council considers draft annual plans and agrees proposed levy requests (normally March). If the council does not agree a proposed levy request, it is referred to arbitration

          v)  levies must be adopted by the respective entity boards by 30 April each year.

12.    Additionally, each of the three systems provides the ability for formal meetings of the council or the council’s representative with the respective boards to discuss the draft plans.  Such a meeting normally precedes publication of the annual/funding plan and can be either with a council committee or a person or organisation delegated to meet with the institutions. In the past, these meetings have been relatively informal and conducted by council staff, with a mixture of entity staff and board members. 

13.    In the case of MOTAT, Tātaki Auckland Unlimited holds the day-to-day relationship with MOTAT and provides advice on the annual levy request to the council. This is under the terms of an Advisory Management Agreement with the council. MOTAT and Tātaki Auckland Unlimited review MOTAT’s financial and other requirements and the council’s expectations, and this is followed by a formal meeting in accordance with MOTAT’s legislation before MOTAT’s draft annual plan is published and released for public consultation.   

14.    The timeframes for the annual funding processes precede the council’s consultation and decision-making on its budgets by some months. As a result, the levies cannot be assessed against other council spending priorities and/or their relative impact on rates, although it is noted that the council has a legislative requirement to fund these entities.

15.    The three entities are each required by their respective legislation to produce and adopt an annual report by 30 November each year and provide a copy to the council shortly thereafter. 

Tātaritanga me ngā tohutohu

Analysis and advice

16.    Council is the main funder of these entities through the levy requests, which total $67.8 million for the 2022/2023 financial year (or 3.4 per cent of general rates). Notwithstanding the positive relationships that exist between the council and these entities, the council has few tools for formal accountability and performance monitoring of these entities. There is also an opportunity to improve outcomes by fostering an enhanced partnership with the entities and providing clear expectations (in the case of ARAFB which can then be passed through to the eight specified amenities funded through this system). 

17.    Historically the number of public submissions on the entities’ draft annual plans (or funding plan in the case of ARAFB) has been very low, particularly those who wish to speak to their submissions. Over the last few years, AWMM have made efforts to improve the number of submissions.

18.    Staff consider that the entities should be doing as much as possible to engage their communities on their draft annual plans (or funding plan in the case of ARAFB) and more importantly focusing on how they can make engagement more meaningful and productive.  


 

 

19.    There are significant pressures on the council’s financial position, particularly from the 2023/2024 financial year and beyond. The 2022/23 Annual Budget projects a long-term operating budget gap of $90-$150 million per annum. There are risks that future levy requests from the three statutory entities cannot be accommodated without efficiencies/service reductions in other areas of the council or increases in general rates revenue. Likewise, the entities are subject to similar financial pressures particularly with the slow recovery of international tourism. The financial context makes it even more important that any increases which the council agrees to are accompanied by improved accountability from the recipient organisations.

20.    Staff also consider it would be valuable to facilitate a strategic engagement between the council and the three entities (outside the annual levy process) which allows for the entities to talk to their three-to-five-year planning horizon, opportunities and challenges and other strategic issues.

Proposed general messages to the entities

21.    Given the above, it is proposed the below general messages and requests be communicated to the three statutory entities ahead of the formal 2023/2024 levy processes:

·    there are significant pressures on the council’s financial position for 2023/2024 and beyond. Request that the entities continue to consider this when formulating their levy requests, with a clear outline of and detail for the drivers behind any proposed increases to be supplied, including any actions they have taken to minimise any proposed levy increase. This should also outline what steps have been taken to address cost pressures ahead of the proposed levy requests, such as exploring external revenue streams or other mechanisms.

·    request that the AWMM and MOTAT board chairs and chief executives attend the relevant committee to:

a)   present an update on their financial and non-financial performance at a time suitable for each entity

b)   have a more strategic engagement at a mutually agreeable juncture between the council and each of the three entities to discuss their three-to-five-year planning horizon, opportunities and challenges and other strategic issues. This supports relationship building and communication between the entities and the Governing Body. 

·    request the entities take steps to improve their draft annual plan (or funding plan in the case of ARAFB) consultation processes to encourage more meaningful and productive engagement.

·    request the entities move to or continue to highlight in their planning documents their alignment and contributions not just to the Auckland Plan 2050 but also to Te Tāruke-ā-Tāwhiri: Auckland's Climate Plan, Kia ora Tāmaki Makaurau and Toi Whitiki: Arts and Culture Strategic Action Plan.

·    request the entities’ (or relevant specified amenities in the case of ARAFA) continued participation and engagement in the process to reimagine Toi Whītiki, the arts and culture strategy for Tāmaki Makaurau.


 

 

Entity-specific messages

Auckland Regional Amenities Funding Board

22.    It is proposed that the council request that the ARAFB confirm the funding plan for 2023/2024 meets the requirements of section 14 of ARAFA (assessment criteria).  The assessment criteria include matters such as whether the organisation maintains appropriate accounts, has proper governance and management structures, and has appropriate planning mechanisms. However, it also refers to the need to ensure the residents of Auckland visit, use and benefit from the organisation, that there are systems for ensuring that funding is used for the organisation’s facilities or services, and that “according to independent market research, the residents of the Auckland region perceive the organisation as a regional one”. 

23.    The assessment criteria are used in three ways in the Act. First, when considering new amenities for inclusion in the regime following an invite from the council for applications.  Second, when ARAFB advises that it considers an entity may no longer meet the requirements of the Act. Third, on an ongoing basis ARAFB is required to monitor the amenities’ compliance with the assessment criteria.

24.    We recommend that the council request ARAFB discuss with council staff how the amenities’ compliance with all the assessment criteria can be more clearly demonstrated in future funding plans.

25.    In addition, we recommend that the council requests ARAFB ensures the 2023/2024 Funding Plan meets the requirement of s25(4) of the Act. This requires the annual funding plan to explain all significant increases (or decreases) in funding. Currently, increases are not typically explained in the funding plan, unless an increase is specifically tagged for a purpose or subject to conditions. This can make it difficult for the council to understand why ARAFB has decided an entity requires more funding. In general terms, any increase which is not solely inflation-adjusting a grant should have some explanation, even if not detailed. 

Auckland War Memorial Museum

26.    Considering the significant pressure on the council’s financial position, ask the AWMM to include targets in their annual plan for increased self-generated revenue in accordance with the AWMM’s corresponding objective under the AWMM Act.

27.    Request the AMWW works with council staff to increase understanding of the asset management plan, and the underlying assumptions and methodology for risk management and prioritisation of spending on assets.

28.    Ask that the AWMM work with the council to improve the strategic alignment and collaboration with other entities and the AWMM take a greater leadership role in the museum sector in Auckland. 

29.    Work with the council to agree on a simplified and long-term funding process which is better aligned with the council’s long-term plan budget decision-making, within a framework linked to AWMM’s 5-year strategic plan, agreed performance measures, and that provides certainty for both organisations.

Museum of Transport and Technology

30.    It is proposed the council request MOTAT continue to work in partnership with Tātaki Auckland Unlimited on its future role in the Western Springs precinct and potential for future integration (as per CCO review recommendation). The council could request MOTAT and Tātaki Auckland Unlimited report to the council the outcome of the work and the next steps by August 2023. Progress updates on the work can be made to the relevant council committee or council staff as and when required.

 

31.    Council should also request that MOTAT continues work on the objective outlined in its current 2022/23 Annual Plan to ‘identify and develop new and existing commercial and other partnership opportunities that reduce our reliance on the levy’ and provide updates on progress in this regard.

32.    In addition, the council should also request MOTAT continue to provide progress updates on delivery of the capital projects outlined in their 2022/23 Annual Plan for which additional funding was included in the 2022/23 levy. As these projects are part of a package of work that was discussed and agreed with the council, updates should include projections for capital delivery into the 2023/2024 financial year as part of their 2023/24 Annual Plan.

Public awareness

33.    Staff will also work with the Finance and Communications teams to promote more awareness of the funding the council provides to these three entities (totaling $67.8 million for 2022/2023), the consultation processes these entities undertake and the services and activities they provide for the benefit of Aucklanders. 

34.    This could be through the council’s planning documents (such as the annual budget) and other communication channels, such as the council website. For example, Our Auckland could be used to promote awareness of the entities’ consultation periods on their draft annual plans (or funding plan in the case of ARAFB). Staff understand AWMM already utilise Our Auckland for this purpose.

35.    It is noted that the council sets out proposed plans and expenditure for its galleries, libraries and museums in draft annual plans/10-year budget, prioritising expenditure across all the groups of activities the council provides, and consulting widely with the public on this before finalising the decisions and adopting the documents.

36.    An additional measure to promote more public awareness could be to include additional information on the council’s rates notice, which makes clear to ratepayers council’s legislatively required funding contributions to AWMM, MOTAT and ARAFB. If this measure is used, this information must be included in such a way as to not impact on the statutory purpose of the rates notice.

37.    Prior to amalgamation, Franklin District, Rodney District, Manukau City, Papakura District, and North Shore City councils all adopted separate targeted rates to fund AWMM and MOTAT. A mixture of fixed and property value-based rates were used. The other councils (Auckland City and Waitākere City Councils) chose to fund these organisations from general rates. Both highlighted the portion of the general rates that was going to fund AWMM and MOTAT on the rates notice. 

38.    ARAFB was not established until 2008. Prior to this, the entities ARAFB currently funds were supported by grants from councils in the Auckland region.

39.    There are practical limitations on how much information can be included on the rates notice. Changes to the notice are not constrained to financial periods and can be made for any instalment (with the exception of new targeted rates). The timeframe is only limited by the change control process for rates invoicing.

Options

40.    Staff have worked with the Financial Policy, Financial Planning, Group Treasury and Communications and Marketing teams to explore options for inclusion of additional information in the rates notice, considering such factors as location on the notice, clarity of content, timing, effectiveness and costs/complexity of implementation. 

41.    It was agreed that the best approach would utilise the ‘tile’ on the front page of the rates notice. A worked example of how this could look with draft text (still to be finalised) which is generic to each notice is provided at Attachment A. 

42.    It is proposed this tile would be used for the rates instalment notices distributed in November of each year, to coincide with the window in which the three entities commence or conclude statutory consultation processes on their draft annual plans/funding plan.

43.    This is a very cost-effective approach, as the tile already exists within the rates notice and as such does not increase production costs for printing, stationery and postage. The studio time for the design and copy of the tile and creation of URL within the tile can be accommodated within existing budgets. 

44.    This approach also avoids confusion with targeted rates and other charges which are detailed on page two of the rates notice and concisely conveys a key message, with a URL utilised to provide more information on the council’s website. For example, the URL could include a summary of the entities that are funded under ARAFB, the consultation periods on the draft annual plans/funding plan and the levy amounts each entity receives and any other relevant information.

45.    Other options were considered, including adding a larger amount of content specific material to the rates notice which shows how much an individual rates assessment contributes to each of the three entities. This option would be more complex and costly to implement, and the content does not easily sit within pages one and two of the current rates notice.

46.    Staff recommend that the council agree to the inclusion of the annual statutory levies paid by the council to AWMM, MOTAT and ARAFB as additional information on the council’s annual rates notices.

Tauākī whakaaweawe āhuarangi

Climate impact statement

47.    The decision to agree the proposed general and entity-specific messages for AWMM, MOTAT and ARAFB and to include additional information on the council’s annual rates notice does not impact on greenhouse gas emissions and the approach to reduce emissions. The effects of climate change on the lifetime of the proposed decision are likely to be minimal.

48.    This report proposes that in the general messages to the three entities that they move to or continue to highlight in their planning documents their alignment and contributions to Te Tāruke-ā-Tāwhiri: Auckland’s Climate Plan.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

49.    MOTAT has been undertaking discussions with Tātaki Auckland Unlimited about its future relationship with the council group. This is consistent with the council’s endorsement of the CCO review recommendation number three.

50.    The councillor to AWMM board Rangatira group was established in 2020 to discuss future changes to the AWMM legislation and this process is ongoing. This is consistent with the council’s endorsement of the CCO review recommendation number three.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

51.    The relationship with AWMM, MOTAT and ARAFB is a regional one, and as such decisions about funding contributions are made by the Governing Body or its committees.

Tauākī whakaaweawe Māori

Māori impact statement

52.    The final 2022/23 annual plans for AWMM and MOTAT and the final funding plan for ARAFB include their approaches, activities, and contributions to outcomes for Māori. In the general messages proposed to all three entities, they are requested to move to or continue to highlight in their planning documents their alignment and contributions to Kia ora Tāmaki Makaurau – Māori outcomes performance measurement framework.

Ngā ritenga ā-pūtea

Financial implications

53.    There are no significant financial implications or expenditure associated with this report, as the decision to approve the proposed statutory entity levy requests for 2023/2024 will be made by the Finance and Performance Committee (or its equivalent) in March 2023.

54.    Council sets out proposed plans and expenditure for its galleries, libraries, and museums in draft annual budgets/10-year budgets, prioritising expenditure across all the groups of activities the council provides and consulting widely with the public on this before finalising decisions and adopting the documents.

55.    The proposed approach for reflecting the annual statutory levies to AWMM, MOTAT and ARAFB on the council’s rates notice as additional information incurs minimal costs and these can be accommodated within existing budgets.

56.    However, it should be noted that the levy formulas contained in each entity’s specific legislation are potentially a financial risk to the council. For example, under the AWMM legislation the maximum levy is presently >$150 million. Staff do not suggest that AWMM would request a levy at the top of this range, but it is evidence that the legislation is out of date and does not provide clear guidance on the appropriate level of funding.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

57.    The general and entity-specific messages proposed for AWMM, MOTAT and ARAFB do not raise any material risks for the council.

58.    Regarding the proposal to include the annual statutory levies paid by the council to AWMM, MOTAT and ARAFB as additional information on the council’s annual rates notices, it is noted the prior to amalgamation Auckland City and Waitākere City Councils highlighted the portion of the general rates that was going to fund AWMM and MOTAT on their rates notices.  

Ngā koringa ā-muri

Next steps

59.    Subject to approval of the proposed general and entity-specific messages set out in this report, the Director Governance and CCO Partnerships will finalise and formally communicate these (likely by way of letter) to each of the statutory entities.

60.    Subject to approval of the inclusion of the annual statutory levies paid by the council to the three entities as additional information on the council’s annual rates notice, staff will work to action this for the November rates notice instalment period to coincide with the window in which the three entities commence or conclude consultation processes on their draft annual plans/funding plan.

61.    Staff will also continue to progress other resolutions from the 24 April 2022 meeting, including resolution “k) request that staff explore options for direct relationships with the specified amenities under ARAFA” [GB/2022/29].

 


 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Draft only - example of rates notice with additional information

25

     

Ngā kaihaina

Signatories

Authors

Sarah Johnstone-Smith - Principal Advisor

Chris Levet - Principal Advisor

Edward Siddle - Principal Advisor

Authorisers

Alastair Cameron - Manager - CCO Governance & External Partnerships

Phil Wilson - Director, Governance & CCO Partnerships

Peter Gudsell - Group Chief Financial Officer

 

 


Finance and Performance Committee

15 September 2022

 

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Finance and Performance Committee

15 September 2022

 

Statement of Investment Policy and Objectives for the Self-Insurance Fund

File No.: CP2022/12645

 

  

 

Te take mō te pūrongo

Purpose of the report

1.      To approve the Statement of Investment Policy and Objectives (SIPO) for the Self-Insurance Fund (SIF).

Whakarāpopototanga matua

Executive summary

2.      The SIPO outlines how the investments of the SIF are to be managed.

3.      The SIPO has been developed by Russell Investments after consultation with management and had been endorsed by the Insurance Management Steering Group (IMSG).

4.      The high-level investment objectives of the SIPO reflect the long-term growth focus of the fund balanced with the need to maintain sufficient liquidity to pay claims.

5.      The overall investment strategy reflects a balanced approach to investment (with a 50/50 split between income and growth assets).

6.      SIPO governance rests with this committee and the IMSG, with day-to-day operations and investments decisions being the responsibility of the investment manager (within the parameters set out in the SIPO).

7.      The SIPO incorporates a Responsible Investment (RI) policy. The RI policy is based on a “best endeavours” approach which recognises our limited ability to exclude some securities from the portfolio.

8.      Reporting, including performance against agreed benchmarks, will be provided to this committee (quarterly) and the IMSG (monthly).

9.      It is proposed to capitalise the SIF following this committee’s approval of the SIPO (targeted for 1 October 2022).

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a)      approve the Statement of Investment Policy and Objectives for the Self-Insurance Fund attached as Attachment A of the agenda report.

Horopaki

Context

10.    The Auckland Council Group established a SIF to manage a significant portion of the group’s insurable risks from 1 July 2022.

11.    The SIF will initially be seeded with $20 million of capital as reported to the 21 October 2021 Finance and Performance Committee meeting. Future funds will be provided from premiums (net of claims) paid by the council group and investment returns (as well as possible future capital investments from council).

12.    Russell Investments have been appointed as SIF fund manager following a procurement process.

Tātaritanga me ngā tohutohu

Analysis and advice

13.    The SIPO has been developed by Russell Investment after consultation and feedback from management. The proposed SIPO is attached as Attachment A.

14.    The SIPO has been endorsed by council’s Insurance Management Steering Group (IMSG)[1].

15.    The SIPO requires formal approval by this committee at least every three years with an annual review by the IMSG.

16.    SIPO governance rests with this committee and the IMSG, with day-to-day operations and investment’s decisions being the responsibility of the investment manager (within the parameters set out in the SIPO).

17.    The high-level investment objectives of the SIPO reflect the long-term growth focus of the fund balanced with the need to maintain sufficient liquidity to pay claims.

18.    The investment strategy reflects:

i)        a balanced approach to investment (with a 50/50 split between income and growth assets)

ii)       a weighting of 80 per cent to global assets and 20 per cent to New Zealand assets

iii)      investment in collective investment vehicles (pooled funds) rather than individual securities to maximise diversification and liquidity

iv)      a focus on fixed interest and equities asset classes (rather than real or alternative investments)

v)       a hedging strategy (in relation to global assets) of 100 per cent for fixed interest and 50 per cent for equities.

19.    Based on analysis by Russell Investments, the portfolio can expect an average annual return (before fees and taxes) of approximately 6.6 per cent, with a negative annual return expected to occur once every 4.3 years.

20.    The SIPO incorporates a Responsible Investment (RI) policy. The RI policy is based on a “best endeavours” approach which recognises our limited ability to exclude some securities from the portfolio. The RI policy has been reviewed by council’s Sustainability team. Our approach to RI is broadly consistent with the approach taken by other large NZ investment institutions such as NZ Super and ACC.

21.    Reporting, including performance against agreed benchmarks, will be provided by Russell Investments to this committee (quarterly) and the IMSG (monthly).

Tauākī whakaaweawe āhuarangi

Climate impact statement

22.    Climate change considerations are a key component of the RI policy section of the SIPO.

23.    As stated in the SIPO, council identifies climate change as a top risk and material issue and is working to better understand and manage its exposure. Within the SIF programme and through its investments in the Managed Investment Fund (MIF) (the investment vehicle for the SIF), council is committed to supporting the transition to a resilient, low-carbon economy. Consistent with this commitment, the MIF’s global equities allocation will be invested in a strategy which reduces portfolio exposure to greenhouse gas emissions and fossil fuel reserves and increases exposure to companies with a high responsible investment rating and to those participating in the transition to a green and just economy (relative to a standard, global equity passive portfolio).

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

24.    Representatives from all the CCOs and the council continue to work collaboratively on all insurance matters including the management of the SIF and the associated development of the SIPO. All CCOs are represented on the IMSG.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

25.    The management of the SIF, including the development of the SIPO for the council group is a region-wide issue and does not specifically impact local boards. Accordingly, there has not been any consultation undertaken directly with local boards

Tauākī whakaaweawe Māori

Māori impact statement

26.    The SIPO incorporates a RI policy that integrates Environmental, Social and Governance (ESG) considerations into the investment and operational policies of the SIF programme and the MIF where possible. The SIPO itself is general in nature and no decision is sought in this paper that has a direct impact on Māori.

27.    The property insurance arrangements for the Independent Māori Statutory Board, the Tūpuna Maunga o Tāmaki Makaurau Authority, the Ngāti Whātua Ōrākei Reserves Board and Te Poari o Kaipātiki ki Kaipara are included in the Auckland Council group arrangements. Insurance arrangements for these entities are not be impacted by the establishment of the self-insurance fund.

Ngā ritenga ā-pūtea

Financial implications

28.    The financial performance of the SIF will depend on a number of factors including the investment returns.

29.    The SIPO proposes a balanced approach to investment. Based on analysis by Russell Investments, the portfolio can expect an average annual return (before fees and taxes) of approximately 6.6 per cent, with a negative annual return expected to occur once every 4.3 years.

30.    The SIF will benefit the council group over time through enabling the council to manage additional risk and reducing insurance premiums to the external market.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

31.    With any investment fund, there is a risk of negative returns and underperformance against benchmarks.

32.    This risk is mitigated by:

i)          the appointment of a professional investment manager 

ii)         having an approved and regularly reviewed SIPO

iii)        regular reporting to the IMSG (monthly) and this committee (quarterly) which will include performance against recognised benchmarks.

Ngā koringa ā-muri

Next steps

33.    Following approval of the SIPO by this committee it is proposed to capitalise the SIF (with the initial $20 million of capital and $2.8 million of initial premium). This is targeted for 1 October 2022.

34.    The first reporting will be provided to this committee at the conclusion of the December quarter.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Statement of Investment Policy and Objectives for Self-Insurance Fund

31

     

Ngā kaihaina

Signatories

Authors

Varsha Prasad - Senior Insurance and Claims Advisor

John Bishop - Group Treasurer

Authoriser

Peter Gudsell - Group Chief Financial Officer

 

 


Finance and Performance Committee

15 September 2022

 

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Finance and Performance Committee

15 September 2022

 

Asset recycling disposal recommendation - 33B (part) Brandon Road, Glen Eden; 17 Erson Avenue, Royal Oak; and 2 Levene Place, Mount Wellington

File No.: CP2022/08105

 

  

Te take mō te pūrongo

Purpose of the report

1.      To recommend the disposal of three properties no longer required by Auckland Council for service purposes, being 584m2 of 33B Brandon Road, Glen Eden; 17 Erson Avenue, Royal Oak; and 2 Levene Place, Mount Wellington.

Whakarāpopototanga matua

Executive summary

2.      Approval is being sought to dispose of three properties not required for council service or public work purposes.

3.      584m2 of 33B Brandon Road is no longer required for stormwater infrastructure purposes. Consultation with council and its council-controlled organisations (CCOs), iwi and the Waitākere Ranges Local Board has taken place. Council departments and CCOs have not identified an alternate council service or public work requirement for the subject area.

4.      The Waitākere Ranges Local Board does not support the disposal and requests the subject 584m2 parcel remain in council ownership for recreation purposes. In response, staff can advise that no recreation requirement has been identified through discussions with council departments. Due to its size and configuration, the subject parcel is below the minimum size for a council pocket park and would have no street frontage. It is not required from an open space provision perspective, as nearby reserves provide a mix of recreation opportunities. The lack of street frontage and proximity to stormwater ponds would likely result in Crime Prevention Through Environmental Design (CPTED) and safety issues.

5.      17 Erson Avenue, Royal Oak is an at-grade, off-street car park located behind commercial properties on Mount Albert Road. It is the remainder of land acquired in 1976 for service lane and car parking purposes. Auckland Transport (AT) has confirmed 17 Erson Avenue is no longer required for a current or future transport function or service.

6.      2 Levene Place, Mount Wellington is a commercial property that was acquired in 2005 for future transport infrastructure purposes. The property is subject to covenants relating to access restrictions and future development/use requiring approval by the former developer. In February 2021, the AT Board declared that 2 Levene Place is no longer required for transport purposes.

7.      Eke Panuku has engaged with council and its CCOs, iwi authorities and the Maungakiekie-Tāmaki Local Board regarding 17 Erson Avenue and 2 Levene Place. No public work requirement has been identified for these properties through this engagement. The Maungakiekie-Tāmaki Local Board endorses the disposal of the two properties.

8.      Sales proceeds from the proposed disposals will be allocated towards the asset recycling target contained in Auckland Council’s 2021-2031 Recovery Budget.


 

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a)      approve, subject to the satisfactory conclusion of any required statutory processes, the disposal of

i)        584m2 of 33B Brandon Road, Glen Eden (subject to survey) comprised of an estate in fee simple being Section 2 SO 469820 contained in record of title 677311;

ii)       17 Erson Avenue, Royal Oak comprised of an estate in fee simple being Sections 1-2 SO 544296 contained in record of title 947604 and Section 3 SO 544296 contained in record of title 947605; and

iii)      2 Levene Place, Mount Wellington comprised of an estate in fee simple being Lot 7 DP 341877 contained in record of title 172277.

b)      agree that final terms and conditions be approved under the appropriate delegations.

 

Horopaki

Context

Asset recycling budget

9.      Asset recycling is an important lever for council, releasing capital from poorly performing and/or non-strategic assets to allow greater investment in the most important strategically aligned activities. 

10.    The recovery budget includes $70 million in 2022/2023, with $430 million to be realised from asset recycling over the full 10-year budget period.

Financial Year  

21/22

22/23

23/24

24/25

25/26

26/27

28/29

Recovery Budget Total

Budget
($ million)

70

70

70

70

70

60

20

430

Asset recycling process

11.    The property asset recycling process is well developed. It includes identifying properties in the council portfolio that are no longer required for future council services or public work purposes and may be suitable for sale or development if appropriate.

12.    Once a property has been identified as no longer required for current public work purposes, engagement is undertaken with relevant council business units and CCOs to establish whether the property must be retained for a strategic purpose or is required for a future funded public work. The asset recycling process also includes engagement with ward councillors, local boards and mana whenua. It is designed to ensure that the council complies with its statutory obligations in relation to land. All relevant ward councillors have been notified regarding the properties located in their ward recommended for disposal in this report. Engagement with local boards and mana whenua is covered in the local board views and Māori impact statement sections of this report.

Tātaritanga me ngā tohutohu

Analysis and advice

Property information - 33B (part) Brandon Road, Glen Eden

13.    33B Brandon Road is a 5,219m2 former residential property held by Auckland Council for stormwater infrastructure purposes. The original property was acquired by the former Waitakere City Council in 1997 for drainage purposes. In 2015, part of the property no longer required for a public work was sold back to the former owner in accordance with s40 Public Works Act 1981. The remaining property consists of stormwater management infrastructure, vacant land and a concrete driveway/turn around pad.

14.    Council’s Healthy Waters department has advised that the subject 584m2 parcel of 33B Brandon Road is also no longer required to be held for stormwater infrastructure purposes. Council’s Land Advisory Services team subsequently requested Eke Panuku commence the asset recycling process.

15.    The Land Advisory Services team has advised that due to the size, shape, location and potential lack of legal access for the 584m2 parcel, it would need to be disposed of to an adjoining landowner to avoid being a landlocked parcel. One of the adjoining landowners is interested in acquiring the subject 584m2 parcel.

16.    The Land Advisory Services team further advised that the parcel is not required to be retained for open space purposes as it is below the minimum size for a council pocket park and would have no street frontage. There are potential CPTED and safety issues with retaining a park with limited access from the street and in proximity to stormwater ponds.

17.    As part of their adjoining private development at 4A Claywest Place, Glen Eden, the adjoining landowner will construct a new public road to allow access to the part of the 33B Brandon Road remaining in council ownership. This will provide better access for ongoing council maintenance of the stormwater management infrastructure.

18.    The Auckland Unitary Plan zoning for the entirety of 33B Brandon Road is Residential - Terrace Housing and Apartment Building. The 584m2 parcel has a 2021 desktop valuation of $56,000.  The 584m2 parcel is likely to be subject to offer back obligations to the successor in title in accordance with s40 Public Works Act 1981.

Property information – 17 Erson Avenue, Royal Oak

19.    17 Erson Avenue, Royal Oak is a 603m2 property formed as at-grade, off-street carparking behind the commercial buildings at 707, 1/707, 711 and 713 Mount Albert Road. The subject parcel is the balance of multiple properties acquired by the former Onehunga Borough Council in 1976 for service lane and car parking purposes.

20.    A formed service lane appears to have been constructed by 1988; however this was not declared as service lane by AT until 2020. The service lane is not subject to council asset recycling.

21.    In conjunction with the legalisation of the service lane, AT undertook an assessment to ascertain whether the 603m2 parcel of at-grade car park has strategic or operational value in the delivery of transport infrastructure services or activities.

22.    AT’s assessment included internal consultation with its Elected Member Liaison, Infrastructure Planning, Walking and Cycling, Transport Planning and Investment, Parking Design, Services and Performance and Major Projects units. The evaluation concluded that the 25 car parks are used primarily by the adjacent businesses, not the public, and that the subject 603m2 parcel is not required for a current project or any future transport function.

23.    The AT Board resolved in March 2019 that the subject 603m2 parcel of at-grade car parking is not required for its transport purposes and the property was subsequently transferred from AT to council. Following further property investigations, council’s Stakeholder and Land Advisory team advised that due to its configuration, no council development or alternate use of the subject 603m2 parcel is possible. As such, it is suitable for consideration for disposal.

24.    No leases or licenses relating to the addresses or owners of 707, 1/707, 711 and 713 Mount Albert Road are associated with the car park. However, the businesses have likely enjoyed its use for staff and customer parking since at least 1988.

25.    One of the adjacent landowners has expressed interest in purchasing 17 Erson Avenue should it be approved for disposal.

26.    The AUP zoning is Business - Town Centre. The council 2021 rating valuation is $1,120,000. 17 Erson Avenue is subject to offer back obligations in accordance with s40 Public Works Act 1981.

Property information – 2 Levene Place, Mount Wellington

27.    2 Levene Place is a 3,772m2 commercial property that was acquired by the former Auckland City Council in 2005 for future transport infrastructure purposes (being a possible route alignment for a proposed Eastern Transport Corridor initiative). However, the property was never designated for roading purposes and remained vacant until 2018. 

28.    The property is now leased for commercial purposes, with the improvements owned by the lessee.

29.    In February 2021, the AT Board declared 2 Levene Place as no longer being required for transport purposes and it was subsequently transferred to Auckland Council in June 2021. Auckland Council’s Stakeholder and Land Advisory team consider the property is suitable for asset recycling.

30.    The property is subject to covenants relating to access restrictions and future development/use requiring approval by the former developer Quadrant Properties Ltd. If approved for disposal, council will advise any potential purchaser of the restrictions and covenants in favour of Quadrant Properties Ltd.

31.    2 Levene Place is zoned under the AUP as Business – Light Industry. It has a 2021 council rating valuation of $4.35 million.

32.    2 Levene Place is not subject to offer back obligations in accordance with s40 Public Works Act 1981, as Quadrant Properties Ltd had on-sold the property prior to its acquisition by council. 

Tauākī whakaaweawe āhuarangi

Climate impact statement

33.    The proposed sale of 33B (part) Brandon Road, 17 Erson Avenue and 2 Levene Place may lead to land use changes. It is acknowledged that any form of construction and development can increase carbon emissions.

34.    The entirety of 33B Brandon Road was originally acquired by council for drainage purposes and the residual land contains stormwater management infrastructure. The subject 584m2 parcel of 33B Brandon Road is no longer required for drainage purposes and is not likely to be subject to flooding. 17 Erson Avenue and 2 Levene Place are not located in flood prone areas.

35.    There are native tree plantings in the portion of 33B Brandon Road to be retained by council which provides a habitat for local bird life.

36.    The subject three properties are not coastal properties likely to be impact by sea level rises.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

37.    All relevant council departments and CCOs have been consulted on the proposed disposal of 33B (part) Brandon Road, 17 Erson Avenue and 2 Levene Place. No public work requirement was identified.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

38.    The Waitākere Ranges Local Board does not support the disposal of 33B (part) Brandon Road. The local board resolved at its 23 June 2022 business meeting (resolution number: WTK/2022/68) advocating to the Governing Body for the area to be retained as open space for the community and families in the planned neighbouring development.

39.    In response to the local board’s resolution, Eke Panuku and the Land Advisory Services team can advise that all council departments and CCOs have been consulted and no recreation requirement has been identified.

40.    The subject 584m2 parcel is below the minimum size for a council pocket park. It is not required from an open space provision perspective, as nearby Clayburn Reserve (6,179m2) and Glucina Reserve (5,989m2) provide large public areas suitable for a mix of recreation purposes.

41.    The 584m2 parcel of Brandon Road does not and cannot provide a link to any other areas of open space. As a standalone park, the parcel would have no street frontage. This would likely result in CPTED issues. While there are some large trees on the boundary with 33C Brandon Road, there are native plantings by the adjacent stormwater ponds that already provide a habitat for bird life.

42.    The Maungakiekie-Tāmaki Local Board resolved (resolution MT/2022/111) at its 23 August 2022 that it endorses the disposal of 17 Erson Avenue and 2 Levene Place.

Tauākī whakaaweawe Māori

Māori impact statement

43.    Nineteen mana whenua iwi authorities were contacted for site-specific feedback regarding 33B (part) Brandon Road, 17 Erson Avenue and 2 Levene Place. This engagement sought to understand if there are any issues of cultural significance associated with the subject properties. No issues of cultural significance were received in response.

Ngā ritenga ā-pūtea

Financial implications

44.    Should the disposal of the subject three properties be approved, the proceeds of sale will contribute to the asset recycling targets set in the 10-year (2021-2031) Recovery Budget by providing the council with an efficient use of capital and prioritisation of funds to achieve its planned activities and projects.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

45.    Due to the size, shape and location of the 584m2 parcel of 33B Brandon Road and the lack of legal access, should a disposal be approved, Land Information New Zealand (LINZ) is likely to require it be disposed of to an adjoining landowner to avoid it becoming a landlocked site.

Ngā koringa ā-muri

Next steps

46.    Subject to the approval by the Finance and Performance Committee, the terms and conditions of sale for 33B (part) Brandon Road, 17 Erson Avenue and 2 Levene Place will be approved under appropriate financial delegation.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Images

49

     

Ngā kaihaina

Signatories

Authors

Anthony Lewis - Senior Advisor, Portfolio Review, Eke Panuku Development Auckland

Matt Casey - Team Leader Portfolio Review

Authorisers

Letitia Edwards - Head of Strategic Asset Optimisation - Eke Panuku Development Auckland

Marian Webb – General Manager Assets and Delivery - Eke Panuku Development Auckland

Peter Gudsell - Group Chief Financial Officer

 

 


Finance and Performance Committee

15 September 2022

 

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Finance and Performance Committee

15 September 2022

 

Adjacent 176 Princes Street West, Pukekohe - s138 Local Government Act 2002 consultation

File No.: CP2022/09862

 

  

Te take mō te pūrongo

Purpose of the report

1.      To report the outcome of the public consultation for the property adjacent to 176 Princes Street West, Pukekohe, which was approved for sale to enable the delivery of Kia Puāwai/Unlock Pukekohe High Level Project Plan in June 2019.

Whakarāpopototanga matua

Executive summary

2.      Adj 176 Princes Street West, Pukekohe (section 1 SO 430835) was approved for sale by the Finance and Performance Committee in 2019 as part of the Kia Puāwai/Unlock Pukekohe High Level Project Plan (HLPP) (FIN/2019/61).

3.      The property is not required as part of the open space network and no current or future council service use has been identified by council departments.

4.      While the property is not subject to the Reserves Act 1977, it is considered to meet the definition of a ‘park’ under s138 Local Government Act 2002 given its open space zoning. As such, council is required to publicly consult on the proposal to dispose of park land. 

5.      Eke Panuku Development Auckland (Eke Panuku) has completed iwi and public consultation in accordance with s138 Local Government Act 2002 regarding the decision to sell the property.

6.      One submission from the public was received, which primarily was expressing an interest in acquiring the property.

7.      Considering the outcome of the consultation process, Eke Panuku now seeks a formal resolution from the Finance and Performance Committee confirming the 2019 decision to dispose the property.

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a)      note that one submission was received in response to the s138 Local Government Act 2002 public consultation undertaken regarding the disposal of adj. 176 Princes Street West, Pukekohe comprised of an estate in fee simple of 1,019m2 being Section 1 SO 430835 held in record of title 556921

b)      confirm the June 2019 approval to dispose of adj. 176 Princes Street West, Pukekohe comprised of an estate in fee simple of 1,019m2 being Section 1 SO 430835 held in record of title 556921 as it is not required to be retained by council for open space or recreational purposes

Horopaki

Context

8.      Adj. 176 Princes Street West, Pukekohe (section 1 SO 430835) is a 1,019m2 vacant site of flat contour (Attachment A).

9.      In 2001 the property was acquired by the Franklin District Council as part of a 1.9450ha block that now predominantly forms the Ray Fausett Reserve.

10.    The purpose of the block’s acquisition was to subdivide the land into three sections to create: a recreation reserve, development of a stormwater drainage area and an area for sale if council so desired. The subject property is the area that was set aside for disposal.

11.    In 2011 Section 2 SO 430835 and Section 3 SO 430835 were respectively declared to be recreation reserve and drainage reserve by Gazette Notice No. 76 p. 1816. Section 1 SO 430835 (adj. 176 Princes Street West) remained a fee simple title.

12.    As the block was acquired with an intention to subdivide and sell the property, it is not subject to any obligations under the Public Works Act 1981.

13.    In June 2019, with the endorsement from the Franklin Local Board (FR/2019/44), the Planning Committee recommended to the Finance and Performance Committee (PLA/2019/1) that the property be disposed.

14.    In the same month, the Finance and Performance Committee resolved to dispose the property, subject to the conclusion of any required statutory processes (including a plan change), to enable delivery of the Kia Puāwai/Unlock Pukekohe HLPP objectives (FIN/2019/61).

15.    While the intent was always to sell the property, its open space – informal recreation zoning meant it is considered a “park” in accordance with s138 Local Government Act 2002. This section stipulates that “a local authority proposing to sell or otherwise dispose of a park or part of a park must consult on the proposal before it sells or disposes of, or agrees to sell or dispose of, the park or part of the park.” 

16.    Accordingly, Eke Panuku undertook public consultation on the proposal to dispose of adj. 176 Princes Street West.

Tātaritanga me ngā tohutohu

Analysis and advice

17.    A public notice was placed in the Franklin County News on 19 May 2022 (Attachment B). The notice was also placed on the council’s website and letters were sent to the adjoining owners. The notification period ran until 24 June 2022.

18.    One submission was received from an adjoining owner (Attachment C) and an enquiry was received by council’s Customer Service team via email on 23 June 2022. A follow up email was sent to the customer, but no further correspondence has been received.

19.    The following table summarises the main points of the submission received during the public consultation period along with staff comment:

 

Matters raised

Comments

1

·    Expression of interest in acquiring the property.

 

·    Is the property Māori land?

 

 

·    Is it able to be developed for residential?

 

·    What is the sale price?

·    Would council have any specific conditions of sale?

·    The submitter has been registered as an interested party and should the property be sold, will be informed of the go to market strategy.

·    The property is located in a wider area that several iwi have registered their interest in. As part of the implementation of any go to market strategy, iwi will be notified.  

·    The property will need to go through a plan change process, the outcome of which will determine its future use.

·    Should go to market strategy be implemented, the sale price will be determined in accordance with current policies.

·    Any specific essential outcomes will be determined when the go to market strategy is developed.

20.    Based on the one submission received, staff continue to support the divestment of the property.

Tauākī whakaaweawe āhuarangi

Climate impact statement

21.    Adj. 176 Princes Street West is recorded as a flood sensitive area, however the adjoining properties that are located within a flood plain have been developed. Upgrading the stormwater infrastructure as part of any development (determined through the resource consenting process) will eliminate any potential risk.

22.    It is acknowledged that any form of construction and development are likely to increase emissions. It is not known at this point what the future use of this property will be, however there are mechanisms available to reduce the impact.

23.    The property has no other environmental instabilities.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

24.    Consultation has been undertaken with relevant council departments and CCOs. No future uses or requirement for adj. 176 Princes Street West has been identified.

25.    The property is not required to be retained as part of the open space network as there is adequate provision in the immediate area at Ray Fausett Reserve.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

26.    The Franklin Local Board endorsed the proposed disposal of adj. 176 Princes Street West as part of the Unlock Pukekohe HLPP at its 16 April 2019 business meeting (FR/2019/44).

Tauākī whakaaweawe Māori

Māori impact statement

27.    Eke Panuku notified all the relevant mana whenua iwi authorities of the proposal to sell adj. 176 Princes Street West on 6 July 2022, which was followed up on 1 August 2022 (Attachment D). No submissions were received.

Ngā ritenga ā-pūtea

Financial implications

28.    Any costs associated with the sale of adj. 176 Princes Street West will be reimbursed from the proceeds of sale.

29.    The net sale proceeds will be be reinvested within Eke Panuku’s priority location programme.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

30.    If resolution FIN/2019/61 approving the divestment of this property is not confirmed following completion of the public consultation, it will not be possible to progress the disposal. In this instance, adj. 176 Princes Street West would remain in council ownership and continue to incur ongoing maintenance and management costs.

Ngā koringa ā-muri

Next steps

31.    Subject to the Finance and Performance Committee confirming its approval to dispose of adj. 176 Princes Street West, a plan change will be requested to change the zoning from open space to the most appropriate zone on the advice of the Unitary Plan team.

32.    Once a plan change has been completed, a go to market strategy will be determined and the terms and conditions of sale will be approved under the appropriate financial delegation.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Images

57

b

Public notice

59

c

Submission received

61

d

Iwi notification

63

     

Ngā kaihaina

Signatories

Authors

Andrew Elcoat – Portfolio Specialist, Eke Panuku Development Auckland

Moira Faumui - Property Asset Advisor, Eke Panuku Development Auckland

Authorisers

Letitia Edwards – Head of Strategic Asset Optimisation, Eke Panuku Development Auckland

Richard Davison – Priority Location Director, Eke Panuku Development Auckland

Peter Gudsell - Group Chief Financial Officer

 

 


Finance and Performance Committee

15 September 2022

 

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Movements in asset recycling property portfolio

File No.: CP2022/10890

 

Te take mō te pūrongo

Purpose of the report

1.      To recommend ten properties previously approved for sale be removed from the asset recycling programme and retained in council ownership.

Whakarāpopototanga matua

Executive summary

2.      The Finance and Performance Committee approved the following properties for disposal on 16 July 2020 (resolution number FIN/2020/31) as part of the Emergency Budget, subject to the satisfactory conclusion of any required statutory processes:

·        8 Magnolia Drive, Waiuku

·        28R Simon Owen Place, Howick

·        3R Taylor Road, Mangere Bridge

·        11R Birmingham Road, Ōtara

·        2R Keeney Court, Papakura

·        Lot 1 DP 36821 State Highway 16, Reweti

·        13 Davern Lane, New Lynn

·        30 Willerton Avenue, New Lynn.

3.      The committee also approved the following properties for disposal on 17 September 2020 (resolution number FIN/2020/57) as part of the Emergency Budget, subject to the satisfactory conclusion of any required statutory processes:

·        31 Aspiring Avenue & 17R Hilltop Road, Clover Park; and

·        111R Golfland Drive, Howick.

4.      Investigations have identified that these 10 properties need to be retained in council ownership. This is on the basis that there are restrictions on potential future development or issues were identified through public consultation processes. Property specific information and the rationale for recommending the retention of each property is outlined in the analysis and advice section of this report.

5.      The cumulative value of these properties is approximately $8.36 million. Removing these properties from the asset recycling programme means that council cannot realise the anticipated sales proceeds. As such, it is expected that the sale of additional properties will be required to meet the asset recycling targets set out in the 10-year Budget 2021-2031 (Recovery Budget).

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a)      agree that Auckland Council does not proceed with the disposal of:

i)        8 Magnolia Drive, Waiuku

ii)       31 Aspiring Avenue & 17R Hilltop Road, Clover Park

iii)      111R Golfland Drive, Howick

iv)      28R Simon Owen Place, Howick

v)       3R Taylor Road, Mangere Bridge

vi)      11R Birmingham Road, Ōtara

vii)     2R Keeney Court, Papakura

viii)    Lot 1 DP 36821 State Highway 16, Reweti

ix)      13 Davern Lane, New Lynn

x)       30 Willerton Avenue, New Lynn.

Horopaki

Context

6.      Asset recycling is an important lever for council, releasing capital from poorly performing and/or non-strategic assets to allow greater investment in the most important strategically aligned activities. The process includes identifying properties in the council portfolio that are no longer required for future council services or public work purposes and may be suitable for sale or development if appropriate.

7.      Following the Finance and Performance Committee’s approval to divest of these properties as part of the asset recycling programme, Eke Panuku Development Auckland (Eke Panuku), on behalf of Auckland Council, subsequently commenced work on site-specific property investigations, engagement with relevant stakeholders and undertaking required statutory processes.

8.      Engagement has occurred with relevant council business units and council-controlled organisations (CCOs) to establish whether there are any issues preventing disposal proceeding. Engagement has also been undertaken with mana whenua regarding issues of cultural significance.

9.      Where properties are subject to the Reserves Act 1977, a reserve revocation process in accordance with s24 of the Reserves Act was undertaken, including public and iwi notification. The views of relevant local boards were also sought. Independent commissioners were subsequently appointed to consider public and mana whenua submissions received and hearings were held in September 2021 and February 2022.

10.    The Independent Commissioners Hearing Panel recommendation reports and views of the relevant local boards regarding the proposed reserve revocations were reported to the PACE Committee in April, June and August 2022.

Tātaritanga me ngā tohutohu

Analysis and advice

11.    Table 1 provides a summary of the subject 10 properties now recommended for retention:

Local Board

Address

Current use

Reason for retention

Franklin

8 Magnolia Drive, Waiuku

Undeveloped open space

To be retained as open space.

Independent commissioners recommended council do not revoke the reserve status of the property. This is due to concerns of potential development occurring in close proximity to the scheduled tree on the reserve; and due to the loss of public access to the tree due to its location. Also noted was the opposition from Ngāti Te Ata Waiohua.

The PACE Committee resolved (PAC/2022/72) to not proceed with the reserve revocation process at its 11 August 2022 meeting.

Howick

31 Aspiring Avenue & 17R Hilltop Road, Clover Park

Vacant land

To be retained as vacant land.

Planning advice received confirms that restrictions from the National Grid Corridor Overlay, Airspace Restriction Designation and Aircraft Noise Overlay will limit any development opportunities.

Howick

111R Golfland Drive, Howick

Undeveloped open space

To be retained as open space.

Independent commissioners recommended council not revoke the reserve status of the property.

This is on the basis that the reserve is capable of further development for recreational activities; it is located in an area planned for intensification; and it provides local recreation and utility functions which alternatives cannot provide.

In addition, the site provides a buffer between the residential area and the adjacent power substation.

The PACE Committee resolved (PAC/2022/49) not to proceed with the reserve revocation process at its 9 June 2022 meeting.

Howick

28R Simon Owen Place, Howick

Vacant land

To be retained as vacant land.

Planning advice received recommends retention as entire site is within a flood plain which limits future development.

Mangere-Otahuhu

3R Taylor Road, Mangere Bridge

Vacant community building

To be retained as open space.

A submission from the Tūpuna Maunga Authority advised that the property is of significance to mana whenua. The Authority also advised that it seeks a future agreement with council to manage the property in an integrated fashion with the adjacent maunga.

In response to the submission, it is recommended that council not progress with a disposal to allow consideration in due course of such an agreement in accordance with s110 Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014.

Ōtara-Papatoetoe

11R Birmngham Road, Ōtara

Undeveloped open space

To be retained as open space.

Independent commissioners recommended council not revoke the reserve status of the property.

This is on the basis that the reserve provides a convenient area of recreation space for factory workers and the local childcare and the church. The local area suffers from deprivation and is not well served with other alternate areas of open space.

The PACE Committee resolved (PAC/2022/72) not to proceed with the reserve revocation process at its 11 August 2022 meeting.

Papakura

2R Keeney Court, Papakura

Pocket park

To be retained as open space.

Issues regarding planned intensification of the area and the assessments against council’s open space policies were raised in submissions received on the proposed revocation of the reserve status. Following further review was undertaken by the Parks, Sports and Recreation and Land Advisory Services teams, staff now recommend the property be retained. It was subsequently withdrawn from the reserve revocation process.

Rodney

Lot 1 DP 36821 State Highway 16, Reweti

Closed landfill

To be retained as historic closed landfill/contaminated site.

Advice received from council’s Geotechnical, Geological & Contamination Advice Team recommends that council not progress with a disposal due to the contaminated land issues.

Whau

13 Davern Lane, New Lynn

Pocket park

To be retained as open space.

Independent commissioners recommended council not revoke the reserve status of the property.

This is on the basis that the reserve is valued by the local community. It is in close proximity to a wetland and wildlife corridor. The property meets current needs and has the potential to do so in the future.

The PACE Committee resolved (PAC/2022/72) not to proceed with the reserve revocation process at its 11 August 2022 meeting.

Whau

30 Willerton Avenue, New Lynn

 

Vacant land

To be retained as vacant land.

Advice received from council’s Healthy Waters team and Watercare recommends that council not progress with the disposal of this property due to existing underground stormwater and wastewater infrastructure assets restricting any future development.

12.    Additional property information and images of the 10 subject properties are included as Attachment A.

Tauākī whakaaweawe āhuarangi

Climate impact statement

13.    The recommendations outlined in this report are unlikely to have any negative impact on Auckland Council meeting key Te Tāruke-ā-Tāwhiri: Auckland's Climate Plan outcomes.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

14.    Consultation has been undertaken with the council and its CCOs on a property-specific basis. The advice received is contained in Table 1 and contributes towards the recommendations of the report.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

15.    Relevant local boards were consulted on the asset recycling process as part of the Emergency Budget in 2020 and through subsequent statutory work undertaken.

16.    The recommendations outlined in this report will likely have an impact where local boards will have future delegated decision-making authority for the subject properties e.g., as part of local parks network.

Tauākī whakaaweawe Māori

Māori impact statement

17.    Mana whenua iwi authorities were contacted for site-specific feedback regarding the subject properties as part of the asset recycling process in 2020 and as part of subsequent statutory work undertaken.

18.    In June 2021, the Tūpuna Maunga Authority requested in writing that council not revoke the reserve status and dispose of 3R Taylor Road, and that it seeks a future agreement with council to manage the property in an integrated fashion with the adjacent maunga. In response the property was withdrawn from the reserve revocation process to enable Auckland Council to contemplate, in due course, the potential to transfer decision making responsibility to the Maunga Authority.

19.    Other iwi authorities that notified council of issues of any cultural significance associated with a property, opposed a disposal, or submitted on a proposed reserve revocation will be notified of the Finance and Performance Committee’s decision regarding the subject properties.

Ngā ritenga ā-pūtea

Financial implications

20.    Capital receipts from the sale of properties not required by Auckland Council contribute to the 10-year Budget 2021-2031 (Recovery Budget) by providing the council with an efficient use of capital and prioritisation of funds to achieve its activities and projects.

21.    The Recovery Budget includes $430 million to be realised from asset recycling over the full 10-year budget period.

22.    The subject 10 properties recommended to be retained have a combined 2021 council valuation total of $8.36 million[2]. Subject to the Finance and Performance Committee accepting the recommendations in this report, Auckland Council will forgo any sales proceeds from the disposal of these properties.

23.    The asset recycling process is dynamic and ongoing. Additional properties in the council portfolio that are no longer required for future council services or public work purposes are continually being identified and reviewed. As the properties identified in this report are recommended for retention by Auckland Council, the sale of additional properties will be required meet the asset recycling targets set out council’s 10-year Budget 2021-2031 (Recovery Budget).

24.    Operational costs for the subject 10 properties are contained in existing parks, contaminated land and closed landfill, and community facilities operational and maintenance budgets and no additional costs are expected.

25.    Future capital investment in those properties suitable for recreation purposes, e.g., for park furniture, play equipment, bollards, tree planting, additional signage would likely require funding from relevant local board budgets.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

26.    Risks were identified in disposing of 28R Simon Owen Place, Howick, Lot 1 DP 36821 State Highway 16, Reweti and 30 Willerton Avenue, New Lynn. The recommendation to retain these properties is intended to mitigate the risks to council.

Ngā koringa ā-muri

Next steps

27.    The subject 10 properties will continue to be managed and maintained by Auckland Council.

28.    The Value for Money team and Eke Panuku will continue to monitor the asset recycling programme and update the relevant Committee in the new political term as required.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Property information

71

     

Ngā kaihaina

Signatories

Authors

Anthony Lewis - Senior Advisor, Portfolio Review, Eke Panuku Development Auckland

Matt Casey - Team Leader Portfolio Review

Authorisers

Letitia Edwards - Head of Strategic Asset Optimisation - Eke Panuku Development Auckland

Marian Webb – General Manager Assets and Delivery - Eke Panuku Development Auckland

Peter Gudsell - Group Chief Financial Officer

 

 


Finance and Performance Committee

15 September 2022

 

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Finance and Performance Committee

15 September 2022

 

Preparation of the Auckland Council Group and Auckland Council quarterly performance reports to 30 June 2022

File No.: CP2022/10855

 

  

Te take mō te pūrongo

Purpose of the report

1.      To provide an update on the preparation of the Auckland Council Group and Auckland Council performance reports and provide a summary of key highlights for the quarter ended 30 June 2022.

Whakarāpopototanga matua

Executive summary

2.      The committee is provided with results on a quarterly basis to review performance against budget and the prior year. Entities across the group are involved in the preparation of this information.

3.      Due diligence was performed by obtaining detailed explanations from all business units and group entities supplemented by representation letters provided by the substantive council-controlled organisations (CCOs) and Ports of Auckland Limited’s (POAL) Audit and Risk chairs and chief executives.

4.      Details of the council’s financial performance must remain confidential until they are first audited and published on the NZX. As such, the full performance reports are contained in a confidential report on this agenda. This report does summarise some of the key achievements and risks highlighted in the full reports.

5.      Representatives of the CCO boards, chief executives and chief financial officers will present their 30 June results at the 20 September 2022 CCO Oversight Committee.

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a)      note the update on the Auckland Council Group and Auckland Council quarter four performance reports.

b)      note the Auckland Council Group and Auckland Council quarter four performance reports are included in the confidential part of this meeting.

Horopaki

Context

6.      The Recovery Budget 2021-2031 was adopted in June 2021. The budget focused on tackling the uncertainty and challenges arising from public health restrictions and economic impacts associated with the COVID-19 pandemic while continuing to invest in the region’s infrastructure and natural environment. Key aspects of the first year of the Recovery budget included:

·        an average general rates increase of 5 per cent

·        $2.9 billion capital investment for the year

·        $90 million in savings and cost reductions

·        $70 million from targeted asset recycling.

7.      The committee is provided with management and statutory results on a quarterly basis to review performance against the Recovery Budget and the prior year.

8.      The council group is subject to NZX disclosure requirements. Details of the council’s financial performance for the year must remain confidential until the audit is completed and published on the NZX around 30 September 2022. As such, the full performance reports for both Auckland Council Group and Auckland Council are contained in a confidential report on this agenda.

9.      Representatives of the CCO boards, chief executives and chief financial officers will present their 30 June results at the 20 September 2022 CCO Oversight Committee.

Tātaritanga me ngā tohutohu

Analysis and advice

10.    Key achievements across the Auckland Council Group for the quarter ended 30 June 2022 include:

·    work on key infrastructure projects with progress made on the City Rail Link, the Central Interceptor, the Huia1 and Nihotupu Replacement projects, Manukau Hub extension, and the North-western bus improvement project

·   Matariki ki te Manawa – Matariki at the heart, a lighting and sculptural experience illuminated the city centre with 25 events and installations from 21 June to 16 July

·   Auckland Transport started implementing Phase 2 of its safe speed limits on over 800 roads in Auckland, predominantly in the south, Franklin rural roads and around schools

·   Glen Eden town centre safety improvements were completed

·   “Hunua 4” – a $400 million 31km water transmission pipeline from Manukau to Khyber Pass – was completed after more than a decade in construction. The pipeline takes water from Ardmore and Waikato treatment plants to the Khyber Pass reservoirs. It provides resilience in the event of an earthquake or other disaster that could damage the network

·   with input from the Tāmaki Makaurau Mana Whenua Forum, Ngā Matarae, and staff, Auckland Unlimited changed its name to Tātaki Auckland Unlimited, which recognises the importance of te reo Māori as an official language and the entity’s Tiriti-based commitments to Māori

·   City Rail Link Limited (CRLL) released their final designs for stations as well as the formal names gifted by CRLL’s Mana Whenua Forum, being:

o Maungawhau (Mt Eden)

o Karanga a Hape (Karangahape)

o Te Wai Horotiu (Aotea)

o Waitematā (Britomart)

·    the Queen Street Zero emissions project has seen physical works on Zone 5 Wellesley Street to Mayoral Drive completed and street planting will be installed at the end of August within this zone

·    significant progress has been made within the Grow our Ngahere programme, with Te Arai Hillside planting being completed & Te Arai stream having planted 50,000 plants.


 

11.    Key achievements for Auckland Council for the quarter ended June 2022 include:

·    the council achieved its $90 million savings target in May 2022

·    results from the first long-term kauri health monitoring survey reveal the distribution of the kauri dieback pathogen is limited to localised areas on the periphery of the Waitākere regional park and is not widespread. In addition, the kauri protection programme is a finalist in the Local Government New Zealand, Air New Zealand EXCELLENCE Award for Environmental Wellbeing category

·    Aotea Transfer Station on Great Barrier was readied for use on 1 July 2022. The transfer station allows for all waste not going to the community recycling centre to be sorted to ensure maximised diversion from landfill

·    the Ōwairaka Separation project was completed in June 2022, which separated the combined sewer systems of 50 properties and will reduce wastewater overflows into Oakley Creek

·    the most recent Kōkako Management Area census in the Hunua Ranges showed 229 pairs in May 2022, up from 106 in 2018, making it the second largest mainland population in Aotearoa and a demonstration of NETR-funded pest management success

·    pool and leisure centre membership grew from 19,264 to 20,906 (8.5 per cent growth). This growth was primarily driven by a customer acquisition campaign (which ran from 16 May to 19 June).

Tauākī whakaaweawe āhuarangi

Climate impact statement

12.    This committee paper relates to performance reporting. No decision is sought in this paper that has a direct impact on the group’s greenhouse gas emissions nor the group’s approach to preparing for climate change.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

13.    The group quarterly performance report reflects the results of the group for the 12 months ended 30 June 2022. CCOs and POAL are involved in the preparation of this information.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

14.    Community investment is one of Auckland Council’s strategic focus areas. The Auckland Council quarterly report provides highlights, issues and risks related to local and regional projects.

Tauākī whakaaweawe Māori

Māori impact statement

15.    Māori outcomes is one of our group and council’s strategic focus areas. The Auckland Council Group quarterly report provides key information and progress of delivery on the agreed programmes for the group and the council respectively.

16.    No decisions are being sought in this report that could have an impact on Māori.


 

Ngā ritenga ā-pūtea

Financial implications

17.    No financial decisions are sought and accordingly there are no financial implications directly arising from the information contained in the report.

18.    The council’s overall financial performance is discussed in the associated confidential report. One important milestone achieved this quarter, however, was Auckland Council exceeding the $90 million savings target included in the Recovery Budget.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

19.    The quarterly performance report also highlights key risks and issues that might affect the performance information attached to the confidential report titled ‘Auckland Council Group and Auckland Council quarterly performance report for the twelve months ending June 2022’.

Ngā koringa ā-muri

Next steps

20.    The Auckland Council Group and Auckland Council quarterly performance reports to 30 June 2022 will be released to the public following the Governing Body adopting the Annual Report on 29 September 2022 and releasing this information to the NZX and the public on 30 September 2022.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.     

Ngā kaihaina

Signatories

Authors

Kent Annear - Senior Group Performance Advisor

Karuna Dahya - Manager Group Performance Reporting

Tracy Gers - Group Accounting & Reporting Manager

Authorisers

Nicola Mills - General Manager Financial and Business Performance

Ross Tucker - General Manager, Financial Strategy and Planning

Peter Gudsell - Group Chief Financial Officer

 

 


Finance and Performance Committee

15 September 2022

 

Preparation of the draft Auckland Council Annual Report 2021/2022 and draft Auckland Council Summary Annual Report 2021/2022

File No.: CP2022/12902

 

  

 

Te take mō te pūrongo

Purpose of the report

1.      To provide assurance that due process was followed in the preparation of the draft Auckland Council Annual Report 2021/2022 and the draft Auckland Council Summary Annual Report 2021/2022 (together referred to as the annual reports).

Whakarāpopototanga matua

Executive summary

2.      The Governing Body will be asked to adopt the annual reports at its meeting on 29 September 2022. Preparing and publishing annual reports is a legislative requirement and ensures that we are transparent about our operations with investors and ratepayers.

3.      The annual reports cover the 12 months to 30 June 2022. They have been prepared by council staff and audited by Audit New Zealand on behalf of the Auditor-General. The annual reports compare and comment on the performance of the group and the council against the budgets and performance targets set in the 10-year Budget 2021-2031 (Our Recovery Budget).

4.      The Deputy Auditor-General will attend the Audit and Risk Committee on 12 September 2022 to comment on the:

·   audit process

·   draft letter of representation

·   draft proposed audit opinion, including commentary on the key audit matters

·   status of the annual reports.

5.      There are no significant outstanding process issues relating to the annual reports, however, at the time of writing this report, there was one outstanding audit matter related to an Auckland Council greenhouse gas emissions performance measure. 

6.      The council is working to resolve this matter and the group financial controller will update the committee on progress at this meeting.

7.      The Audit and Risk Committee will review the annual reports and the audit process prior to this Finance and Performance Committee meeting (12 September 2022). The Audit and Risk Committee’s recommendation to the Governing Body will be tabled at this meeting.

8.        Each substantive council-controlled organisation will present their fourth quarter 2021/2022 financial and non-financial performance reports in the confidential part of the 20 September 2022 Council-Controlled Organisation Oversight Committee meeting.


 

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a)      note the confirmation by the Audit and Risk Committee that the audit process in respect of the draft Auckland Council Annual Report 2021/2022 and the draft Auckland Council Summary Annual Report 2021/2022 has been completed satisfactorily

b)      note the draft Auckland Council Annual Report 2021/2022 and the draft Auckland Council Summary Annual Report 2021/2022 will be discussed in the confidential part of this meeting.

 

Horopaki

Context

9.      The following diagram sets out the reporting milestones and provides an outline of the process underway to approve and adopt the annual reports.

Tātaritanga me ngā tohutohu

Analysis and advice

10.    The Local Government Act 2002 (LGA 2002) requires the council to prepare and adopt an annual report and summary annual report each year. The council is also required to publish an annual report under the NZX listing rules.

11.    The annual reports for the year to 30 June 2022 have been prepared by council staff and audited by Audit New Zealand on behalf of the Auditor-General.

12.    The Audit and Risk Committee reviews the quality of the annual reports, the processes used by management, and compliance with legislation and the financial reporting standards. They also review the audit process with the Office of the Auditor-General and Audit New Zealand. The Audit and Risk Committee will have completed their review of the annual reports and recommended the reports to the Governing Body for adoption prior to this Finance and Performance Committee meeting (resolution to be tabled).

13.    The terms of reference for the Finance and Performance Committee include recommending the annual reports to the Governing Body for adoption. This committee report, and the report to be presented in the confidential agenda (titled CONFIDENTIAL: Recommendation of the draft Auckland Council Annual Report 2021/2022 and draft Auckland Council Summary Annual Report 2021/2022) enable the committee to execute that responsibility.

14.    The annual reports are for the Auckland Council Group which is the result of consolidating the financial and non-financial performance results of Auckland Council, its council-controlled organisations and Ports of Auckland Limited. Financial statements of the council are included to comply with the Local Government Act 2002. All budgets and performance targets are those set out in the 10-year Budget 2021-2031 (Our Recovery Budget).

15.    The draft Auckland Council Annual Report 2021/2022 consists of four separate volumes (to be presented in confidential):

·    Volume 1: Overview and service performance

·    Volume 2: Local boards (comprising of 21 local board reports)

·    Volume 3: Financial statements

·    Volume 4: Climate change risk

16.    The draft Auckland Council Summary Annual Report 2021/2022 is a separate stand-alone document.

17.    At the time of writing this report, there was one outstanding audit matter related to Auckland Council’s greenhouse gas emissions performance measure. Audit New Zealand designated this measure as material in August 2022, and it has been a challenge for management to provide the supporting information and for Audit New Zealand to perform the required audit procedures in the tight timeframes. Management is working with Audit New Zealand to bring their audit of this performance measure to closure. 

18.    The annual reports are currently undergoing a final review by Audit New Zealand and may be subject to some editorial changes prior to final submission to the Governing Body and subsequent publication.

19.    Volume 4 is not audited by Audit New Zealand, however they do review the document for consistency with the other volumes.

Tauākī whakaaweawe āhuarangi

Climate impact statement

20.      This committee paper relates to financial and non-financial statutory reporting. No decision is sought in this paper that has a direct impact on the group’s greenhouse gas emissions nor the group’s approach to preparing for climate change.

21.    However, it is acknowledged that the activities undertaken by the group and reported on within the annual report have the potential to be impacted by climate change and can also reinforce or weaken our climate action response.

22.    Climate risk disclosures included in Volume 4 play a key role in how external organisations direct capital flow towards climate positive solutions and investments. Reporting of the group’s response to climate change risk holds the group publicly accountable, and ensures the business maintains their focus on addressing climate change risk at all levels across the group.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

23.    The annual reports reflect the results of the Auckland Council Group for the year ended 30 June 2022. The council-controlled organisations are involved in the preparation of this information. No decision is sought that would directly impact the group.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

24.    Volume 2 of the annual report includes a section featuring the achievements in each local board area. Local boards were engaged to collect and review this information and each local board chair has prepared a message which is included in their respective report. No decision is sought that would impact local boards.

Tauākī whakaaweawe Māori

Māori impact statement

25.    The annual reports cover all aspects of the group’s governance and public accountability. Although the annual reports include commentary on the Auckland Council Group’s contribution to outcomes for Māori, the role of the Independent Māori Statutory Board and the council’s Ngā Mātārae - Māori Strategy and Relations department, no decision is sought in this paper that has a direct impact on Māori.

Ngā ritenga ā-pūtea

Financial implications

26.    There are no financial implications directly arising from the information contained in this committee report as no financial decision is sought.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

27.    The following risks have been identified:

Risk of error, omission or non-compliance in preparation of annual report and summary annual report

28.    There is a risk that errors or non-compliance with legislation and accounting standards could occur in the preparation of the annual reports. To mitigate this risk, quality assurance reviews were performed on the consolidated results and commentary and the year-end reports. The reviews focused on accuracy, completeness and reasonableness of disclosures, legislative compliance and adherence to the council’s communications standards.

29.    There is also a risk that the annual reports present a biased view of the performance of the Auckland Council Group. The trust lens reviewer is used to review these reports to ensure that the annual reports tell a fair and balanced story, that good news stories are truthful and accurate and the poor performance stories are honest and transparent. They review the overall story for consistency across all volumes.

Compliance reviews

30.    Auckland Council’s Legal Services review the summary annual report and volumes 1-3 of the annual report for compliance with local government legislation.

31.    The Financial Control team reviews volume 4 of the annual report for compliance with the Taskforce on Climate-related Financial Disclosures (TCFD) framework.

32.    Mayne Wetherell reviews volumes 1,2 and 3 of the annual report as well as the summary annual report for compliance with NZX listing rules, and compliance with the Financial Reporting Act 2013 and the Financial Markets Conduct Act 2013.

Reviews of accuracy, completeness and fairness

33.    Several reviews of the annual reports take place by people with differing levels and areas of involvement in financial reporting. A summary of the reviews is as follows:

Reviewer

Volume 1

Volume 2

Volume 3

Volume 4

Summary Annual Report

Group chief financial officer

ü

ü

ü

ü

ü

Group treasurer

ü

ü

ü

ü

ü

General manager financial strategy and planning

ü

ü

ü

ü

ü

Executive officer – finance division

ü

 

 

 

ü

Group financial controller

ü

ü

ü

ü

ü

Manager group performance reporting

ü

ü

 

 

ü

Manager group accounting and reporting

 

 

ü

ü

ü

Senior group reporting technical accountant

 

 

ü

 

ü

Financial accounting manager

 

 

ü

ü

ü

Trust lens reviewer

ü

ü

ü

ü

ü

Legal services

ü

ü

ü

 

ü

Chief Sustainability Office

 

 

 

ü

 

Mayne Wetherell

ü

ü

ü

 

ü

34.    In addition to these reviews, the council’s Financial Control team completes a detailed reporting checklist to ensure all financial reporting and disclosure requirements have been met.

35.    The Financial Control team completed a checklist to determine the level of compliance with the TCFD framework.

36.    A trust lens reviewer provided feedback on the financial statements. The reviewer is not within the council’s finance division and was not involved in the preparation of the annual reports.

37.    All the technical quality assurance reviewers who perform reviews from a financial perspective are Chartered Accountant qualified or equivalent and have the appropriate technical accounting skills and knowledge.

Breach of confidentiality

38.    All Auckland Council, council-controlled organisations and Port of Auckland Limited employees who are involved in the preparation and review of the annual reports have been briefed on confidentiality requirements.

39.    Draft copies of the annual reports were provided to members prior to this meeting. Attached to the annual reports was a cover memo reminding the committee of NZX confidentiality obligations. The annual reports will be discussed in the confidential part of this meeting.

Events subsequent to balance date requiring disclosure

40.    The group financial controller will formally request council management, council-controlled organisations and Port of Auckland Limited confirm whether there are any events subsequent to balance date which might require disclosure prior to the Governing Body meeting on 29 September 2022.

41.    Council-controlled organisations and Port of Auckland Limited’s draft statutory financial statements have been reviewed for disclosure of subsequent events.

Delay in Audit New Zealand’s final clearance

42.    There is a risk of delay in Audit New Zealand’s final clearance due to unresolved technical matters.

43.    The Financial Control team has been working with Audit New Zealand to address technical issues early, however some matters cannot be cleared by Audit New Zealand until they have completed their audit of the relevant information.

44.    At the time of writing this report we were awaiting clearance on the Auckland Council greenhouse gas emissions performance measure.

Ngā koringa ā-muri

Next steps

45.    The annual reports will be adopted by the Governing Body at its meeting on 29 September 2022 and released to the NZX and the public on 30 September 2022.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.     

Ngā kaihaina

Signatories

Authors

Tracy Gers - Group Accounting & Reporting Manager

Alvin Ang - Senior Group Reporting Technical Accountant

Francis Caetano - Group Financial Controller

Authorisers

Ross Tucker - General Manager, Financial Strategy and Planning

Peter Gudsell - Group Chief Financial Officer

 

 


Finance and Performance Committee

15 September 2022

 

Summary of Finance and Performance Committee information memoranda and briefings, including the Forward Work Programme - 15 September 2022

File No.: CP2022/12583

 

  

 

Te take mō te pūrongo

Purpose of the report

1.      To tuhi ā-taipitopito / note progress on the forward work programme 2022 appended as Attachment A.

Whakarāpopototanga matua

Executive summary

2.      This is a regular information-only report which aims to provide greater visibility of information circulated to committee members via memoranda/briefings or other means, where no decisions are required.  Please note there have been no memoranda or briefings since the previous meeting held on 26 July 2022.

3.      Note that, unlike an agenda report, staff will not be present to answer questions about the items referred to in this summary.  Committee members should direct any questions to the authors.

 

Ngā tūtohunga

Recommendation/s

That the Finance and Performance Committee:

a)      tuhi ā-taipitopito / note the progress on the forward work programme for 2022 as appended in Attachment A of the agenda report.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Finance and Performance Committee - Forward Work Programme as at 15 September 2022

93

     

Ngā kaihaina

Signatories

Author

Sandra Gordon - Kaitohutohu Mana Whakahaere Matua / Senior Governance Advisor

Authoriser

Peter Gudsell - Group Chief Financial Officer

 

 



Finance and Performance Committee

15 September 2022

 

 

Te Komiti ā-Pūtea, ā-Mahi Hoki/Finance and Performance Committee
Forward Work Programme 2022/23

This committee controls expenditure across the Auckland Council Group and deals with the overall financial management and performance of the council parent organisation and Auckland Council Group and makes financial decisions outside of the annual budgeting processes.  The full terms of reference can be found here: Auckland Council Governing Body Terms of Reference

 

Area of work and Lead Department

Reason for work

Committee role

(decision and/or direction)

Expected timeframes

2022

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Planning and funding

Annual Budget
(2023/2024)

General Manager Financial Strategy and Planning

Statutory Process

Hold workshops regarding process/content/policies (new political term)

Decision to agree Mayoral Proposal (December 2022) (new political term)

 

Progress to date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Half-yearly and annual reporting

Group Treasurer and Group Financial Controller

Statutory requirement and NZX listing requirement

Receive and approve half-year (Mar) and preliminary full year NZX release (delegation to chair and deputy chair)

Receive annual report (Sept)

Recommend adoption of annual report to Governing Body (Sept)

Note:  

·    Reporting in September must be considered as a confidential report until results are sent to NZX at the end of September.

·    NZX announcements are presented to the Audit and Risk Committee

·    There is a delegation from the Committee to Chair and Deputy Chair of Finance and Performance to approve the release of the interim and full year Auckland Council group financial results to the NZX for each reporting period through to 30 June 2022.

·    Formal adoption of annual report is by the Governing Body

 

Progress to date:

Auckland Council Group and Auckland Council Quarterly Performance Report for the six months ending December 2021 - 17 March 2022
Link to decision

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial and Budget Updates

General Manager Financial Strategy and Planning

Financial Management

Receive updates and make decisions on any recommended budget changes outside of the Annual Budget/Long-term Plan, as required

Note:   This includes significant unbudgeted one-off expenditure.

 

Progress to date:

CONFIDENTIAL: Auckland Film Studios budget update – February 2022 – 8 February 2022
Link to decision

Sport and Recreation Facility Investment Fund – Budget update – 17 March 2022
Link to decision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan guarantees and grant funding

Group Treasurer

Financial management

Review information and make decisions on loan guarantees and restructuring (including Parks)

Receive an update on the Eden Park loan guarantee and grant funding (six-monthly)

Receive progress update memos when appropriate

 

Progress to date:

Presentation from Eden Park Trust Board – 17 March 2022
Link to decision

Eden Park Trust Board submission to 2022/2023 Annual Plan – 23 June 2022
Link to Governing Body decision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reporting and performance

Performance reporting quarterly – parent

General Manager Financial and Business Performance

Financial management

Monitor council parent financial and non-financial performance results on a quarterly basis, including Māori outcomes expenditure - Q2 (March), Q3 (May), Q4 (September)

Note:   Reporting in September must be considered as a confidential report until results are sent to NZX at the end of September.

 

Progress to date:

Auckland Council Group and Auckland Council Quarterly Performance Report for the six months ending December 2021 - 17 March 2022
Link to decision

Auckland Council Group and Auckland Council Quarterly Performance Report for the nine months ending March 2022 – 19 May 2022
Link to decision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance reporting quarterly – group

General Manager Financial Strategy and Planning

Financial management

Monitor Auckland Council group financial requirements on a quarterly basis - Q2 (March), Q3 (May), Q4 (September)

Note:   Reporting in September must be considered as a confidential report until results are sent to NZX at the end of September.

 

Progress to date:

Auckland Council Group and Auckland Council Quarterly Performance Report for the six months ending December 2021 - 17 March 2022
Link to decision

Auckland Council Group and Auckland Council Quarterly Performance Report for the nine months ending March 2022 – 19 May 2022
Link to decision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operational

Disposals

Auckland Council and Eke Panuku Development Auckland

Eke Panuku, working with all areas of council, is required through its Statement of Intent to identify and recommend to council properties that are surplus to requirements and can be considered for disposal.  These include general disposals to fund Long-term Plan projects.

 

Agree to proceed with recommended disposals or acquisition, as required.

Note: Properties are recommended for acquisitions and disposal to the committee for approval in accordance with the Long-term Plan/Annual Budget.

Properties are also identified for disposal via the Emergency Budget 2020/2021 asset recycling process.

 

Progress to date:

4 Blomfield Spa, Takapuna – s138 Local Government Act 2022 consultation – 17 March 2022
Link to decision

Asset recycling disposal recommendations – 19 May 2022
Link to decision

 

 

As required

Funding and Levies (including Auckland Regional Amenities Funding Board, Museum of Transport and Technology and Auckland War Memorial Museum)

Manager CCO/ External Partnerships team

Statutory process

Approve annual funding levies for Auckland Regional Amenities Funding Board (April [Governing Body]); Museum of Transport and Technology (April [Governing Body]); and Auckland War Memorial Museum (April [Governing Body])

Receive presentations from amenities (new political term)

 

Progress to date:

Consideration of funding contributions to regional cultural and safety amenities 2022/2023, 28 April 2022
Link to decision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Review of committee forward work programme

Governance

Regular reporting

Receive updates (monthly)

Review content of the forward work programme (six-monthly)

 

Progress to date:

Review of the Forward Work Programme – Finance and Performance Committee – 17 March 2022
Link to decision

 

 

 

 

Review work programme

 

 

 

 

 

 

 

 

 

 

 


 

Completed

Area of work

Committee role

(decision and/or direction)

Decision

Annual Budget
(2022/2023)

General Manager Financial Strategy and Planning

Hold workshops regarding process/content/policies

Decision to agree Mayoral Proposal (December 2021)

Recommend consultation document to consult with public (February 2022)

Adopt consultation document to consult with public (February 2022) (Governing Body)

Consultation period – (28 February 2022 - 28 March 2022)

Hear feedback and deliberate budget scenarios (April/May 2022)

Decisions made for Annual Budget (June 2022)

Recommend final Annual Budget (June 2022)

Adopt final Annual Budget (Governing Body) (June 2022)

 

Workshops held 15 September 2021, 22 September 2021, 29 September 2021, 13 October 2021, 20 October 2021, 27 October 2021, 3 November 2021, 17 November 2021, 23 November 2021, 24 November 2021, 25 November 2021 and 1 December 2021; 2 February 2022; 13 April 2022, 4 May 2022, 11 May 2022, 18 May 2022, 25 May 2022, 26 May 2022, 1 June 2022 and 22 June 2022.

Summary of Finance and Performance Committee information memoranda and briefings, including the Forward Work Programme – 9 December 2021  Link to decision

Summary of Confidential Decisions and related information released into open – 9 December 2021  Link to decision

Annual Budget 2022/2023: Overview to decision making – 8 December 2021  Link to decision

Annual Budget 2022/2023: Regional topics for consultation – 8 December  Link to decision

Tūpuna Maunga Authority Operational Plan 2022/2023 – 8 December 2021  Link to decision       Link to Governing Body decision

Annual Budget 2022/2023: Mayoral Proposal items for consultation – 8 December 2021  Link to decision 
Link to Governing Body decision

Annual Budget 2022/2023: Budget Update – 8 December 2021  Link to decision

Annual Budget 2022/2023: Kerbside refuse charging policy review – 8 December 2021  Link to decision  
Link to Governing Body decision

Annual Budget 2022/2023: Other Rates and Fees Matters – 8 December 2021  Link to decision     Link to Governing Body decision

Annual Budget 2022/2023: Rating of Whenua Māori Changes to Financial Policies – 8 December 2021  Link to decision
Link to Governing Body decision

Annual Budget 2022/2023: Communications and Engagement Plan – 8 February 2022  Link to decision

Annual Budget 2022/2023: Adoption of consultation material – 8 February 2022  Link to decision
Link to Governing Body decision

Rating of Whenua Māori Changes to Financial Policies: Approval of consultation material – 8 February 2022  Link to decision
Link to Governing Body decision

Tūpuna Maunga Authority Operational Plan 2022/2023 – 7 June 2022  Link to decision    Link to Governing Body decision

Annual Budget 2022/23: Overview to decision-making – 7 June 2022  Link to decision

Annual Budget 2022/2023: Local board feedback and advocacy – 7 June 2022  Link to decision

Annual Budget 2022/2023: Mayor's final proposal- 7 June 2022  Link to decision   Link to Governing Body decision

Annual Budget 2022/2023: Kerbside refuse charging policy review – 7 June 2022  Link to decision
Link to Governing Body decision

Annual Budget 2022/2023: Other rates and fees matters – 7 June 2022  Link to decision Link to Governing Body decision

Rating of Whenua Māori: Adoption of Rates Remission and Postponement policies – 7 June 2022  Link to decision      
Link to Governing Body decision

Adoption of the Annual Budget– 29 June 2022 (Governing Body)  Link to Governing Body decision

Adoption of the Revenue and Financing Policy – 29 June 2022 (Governing Body)  Link to Governing Body decision

Rates setting 2022/2023 – 29 June 2022 (Governing Body)  Link to Governing Body decision

Rates remission and postponement policy: correction for omission in adopted policy – 29 June 2022 (Governing Body)
Link to Governing Body decision

Insurance Strategy and Placement

GM Risk and Assurance

Approve the annual insurance placement for Council Group 2022/2023 (May 2022)

Progress to date:

Council Group Insurance Renewal 2022 – 19 May 2022
Link to decision

CONFIDENTIAL: Council Group Insurance Renewal 2022 – 19 May 2022
Link to decision

Insurance Update July 2022 – 26 July 2022
Link to decision

CONFIDENTIAL: Insurance Update July 2022 – 26 July 2022
Link to decision

 

 

Review of Policies

Approve council policies:

·    Significance and Engagement Policy (decision February 2022 – Governing Body)

·    Revenue and Financing Policy (annual budget consultation February 2022, decision June 2022)

·    Rates Remission and Postponement Policy (annual budget consultation February 2022, decision June 2022)

·    Business Improvement District Policy (July 2022)

Receive updates on:

·    Infrastructure Funding and Financing (IFF) (as required)

Annual Budget 2022/2023: Rating of Whenua Māori Changes to Financial Policies – 8 December 2021
Link to decision           Link to Governing Body decision

Significance and Engagement Policy 2022 – 24 February 2022 - Governing Body
Link to decision

Rating of Whenua Māori: Adoption of Rates Remission and Postponement policies – 7 June 2022
Link to decision           Link to Governing Body decision

Adoption of the Revenue and Financing Policy – 29 June 2022 (Governing Body)
Link to Governing Body decision

Rates remission and postponement Policy: correction for omission in adtoped policy – 29 June 2022 (Governing Body)
Link to Governing Body decision

Auckland Council Business Improvement District (BID) Policy Kaupapa Here ā-Rohe Whakapiki Pakihi – 28 July 2022
Link to decision

 

 

 

 

 

Updated: 8 September 2022

 


Finance and Performance Committee

15 September 2022

A picture containing logo

Description automatically generated

 

Exclusion of the Public: Local Government Official Information and Meetings Act 1987

That the Finance and Performance Committee

a)      exclude the public from the following part(s) of the proceedings of this meeting.

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution follows.

This resolution is made in reliance on section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public, as follows:

 

C1       CONFIDENTIAL: Auckland Council Group and Auckland Council Quarterly Performance Report for the twelve months ending June 2022

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

s7(2)(j) - The withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage.

In particular, the report contains information that may not be released to the public until it is released to the NZX on 30 September 2022

s48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

 

C2       CONFIDENTIAL: Recommendation of the draft Auckland Council Annual Report 2021/2022 and draft Auckland Council Summary Annual Report 2021/2022

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

s7(2)(j) - The withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage.

In particular, the report contains information that may not be released to the public until it is released to the NZX on 30 September 2022.

s48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

 

 



[1] The IMSG is a management group formed to oversee the performance of the SIF. It is managed under a formal charter approved by the Group Chief Financial Officer, Director Governance and CCO Partnerships, Chief Executive and Chair of the Finance Performance Committee. Membership consists of representatives of council and all the CCOs as well as three independent members

[2] The total rating valuation of the ten properties was $6.7 million when considered as part of the Emergency Budget in July 2020.