I hereby give notice that an ordinary meeting of the Hibiscus and Bays Local Board will be held on:
Tuesday, 9 May 2023
Hibiscus and Bays Local Board
Julia Parfitt, JP
Alexis Poppelbaum, JP
(Quorum 4 members)
4 May 2023
Contact Telephone: 021 419 205
Hibiscus and Bays Local Board
09 May 2023
1 Nau mai | Welcome 5
2 Ngā Tamōtanga | Apologies 5
3 Te Whakapuaki i te Whai Pānga | Declaration of Interest 5
4 Te Whakaū i ngā Āmiki | Confirmation of Minutes 5
5 He Tamōtanga Motuhake | Leave of Absence 5
6 Te Mihi | Acknowledgements 5
7 Ngā Petihana | Petitions 5
8 Ngā Tono Whakaaturanga | Deputations 5
9 Te Matapaki Tūmatanui | Public Forum 5
10 Ngā Pakihi Autaia | Extraordinary Business 6
11 Hibiscus and Bays Local board consultation feedback and input into the Annual Budget 2023/2024 7
12 Te Whakaaro ki ngā Take Pūtea e Autaia ana | Consideration of
At the close of the agenda no apologies had been received.
3 Te Whakapuaki i te Whai Pānga | 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.
4 Te Whakaū i ngā Āmiki | Confirmation of Minutes
That the Hibiscus and Bays Local Board:
a) confirm the ordinary minutes of its meeting, held on Tuesday, 18 April 2023, as a true and correct record.
5 He Tamōtanga Motuhake | Leave of Absence
At the close of the agenda no requests for leave of absence had been received.
6 Te Mihi | Acknowledgements
At the close of the agenda no requests for acknowledgements had been received.
7 Ngā Petihana | Petitions
At the close of the agenda no requests to present petitions had been received.
8 Ngā Tono Whakaaturanga | Deputations
Standing Order 7.7 provides for deputations. Those applying for deputations are required to give seven working days notice of subject matter and applications are approved by the Chairperson of the Hibiscus and Bays Local Board. This means that details relating to deputations can be included in the published agenda. Total speaking time per deputation is ten minutes or as resolved by the meeting.
At the close of the agenda no requests for deputations had been received.
9 Te Matapaki Tūmatanui | Public Forum
A period of time (approximately 30 minutes) is set aside for members of the public to address the meeting on matters within its delegated authority. A maximum of 3 minutes per item is allowed, following which there may be questions from members.
At the close of the agenda no requests for public forum had been received.
10 Ngā Pakihi Autaia | 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.”
Hibiscus and Bays Local Board
09 May 2023
File No.: CP2023/05531
Te take mō te pūrongo
Purpose of the report
1. To receive consultation feedback from the Hibiscus and Bays Local Board area on:
· proposed priorities and activities for the Hibiscus and Bays Local Board Agreement 2023/2024
· proposed local activities to discontinue, reduce spending on, or increase fees to meet the Governing Body’s proposed reduction in local board funding
· regional topics and related policies for the Annual Budget 2023/2024.
2. To recommend any local matters to the Governing Body that they will need to consider or make decisions on in the Annual Budget 2023/2024 process.
3. To provide input on the proposed regional topics in the Annual Budget 2023/2024 to the Governing Body.
4. Local board agreements set out annual funding priorities, activities, budgets, levels of service, performance measures and initiatives for each local board area. Local board agreements for 2023/2024 will be included in Auckland Council’s Annual Budget 2023/2024.
5. Auckland Council publicly consulted from 28 February to 28 March 2023 to seek community views on the proposed Annual Budget 2023/2024. This included consultation on the Hibiscus and Bays Local Board’s proposed priorities for 2023/2024 to be included in their local board agreement and proposed local activities to discontinue, reduce spending on, or increase fees to meet the Governing Body’s proposed reduction in local board funding.
6. Auckland Council received 41,147 submissions in total across the region and 1,898 submissions from the Hibiscus and Bays local board area.
7. In the Annual Budget process there are financial matters where local boards provide recommendations to the Governing Body, for consideration or decision-making. This includes any local board advocacy initiatives. The Governing Body will consider these items as part of the Annual Budget decision-making process in June 2023.
8. Local boards have a statutory responsibility to provide input into regional strategies, policies, plans, and bylaws. This report provides an opportunity for the local board to provide input on council’s proposed Annual Budget 2023/2024.
That the Hibiscus and Bays Local Board:
a) whiwhi / receive consultation feedback on the proposed Hibiscus and Bays Local Board priorities and activities for 2023/2024 including proposed local activities to discontinue, reduce spending on, or increase fees, to meet the reduction in local board funding proposed by the Governing Body.
b) whiwhi / receive consultation feedback on regional topics in the Annual Budget 2023/2024 and related policies from people and organisations based in the Hibiscus and Bays local board area.
c) whakarite / provide input on regional topics in the proposed Annual Budget 2023/2024 and related policies to the Governing Body.
d) whakarite / provide advocacy on any local initiatives for the Annual Budget 2023/2024 to the Governing Body.
9. Each financial year Auckland Council must have a local board agreement (as agreed between the Governing Body and the local board) for each local board area. The Hibiscus and Bays Local Board Agreement sets out how the council will reflect the priorities in the Hibiscus and Bays Local Board Plan 2020 in respect to the local activities to be provided in the local board area. It includes information relating to budgets, levels of service, and performance measures.
10. The local board agreements 2023/2024 will form part of Auckland Council’s Annual Budget 2023/2024.
11. Auckland Council publicly consulted from 28 February to 28 March 2023 to seek community views on the proposed Annual Budget 2023/2024, as well as local board priorities and proposed activities to be included in the local board agreement 2023/2024.
12. Auckland Council has faced ongoing budget challenges and recent and rapid increases in inflation and interest rates has placed significant pressure on the council’s financial position. A forecast budget deficit of $295 million needs to be addressed in the council’s proposed Annual Budget 2023/2024.
Tātaritanga me ngā tohutohu
Analysis and advice
13. This report includes analysis of consultation feedback, any local matters to be recommended to the Governing Body and seeks input on regional topics in the proposed Annual Budget 2023/2024.
14. As part of the public consultation Auckland Council used a variety of methods and channels to reach and engage a broad cross section of Aucklanders to gain their feedback and input into regional and local topics
15. In total, Auckland Council received feedback from 41,147 people in the consultation period. This feedback was received through:
· written feedback – 5006 hard copy and online forms, emails and letters
· in person – 4488 pieces of feedback through online Have Your Say events (two of which were held in the Hibiscus and Bays local board area).
16. All feedback will be made available on an Auckland Council webpage called “Submissions on the Annual Budget 2023/2024” and will be accessible from 26 April 2023 through the following link: https://akhaveyoursay.aucklandcouncil.govt.nz/submissions-annual-budget-2023-2024
Feedback received for the Hibiscus and Bays Local Board for 2023/2024
Key priorities in Hibiscus and Bays Local Board Area in 2023/2024
17. The Hibiscus and Bays Local Board consulted on the following priorities for 2023/2024:
· Priority 1: providing assistance to those local groups that assist youth by encouraging connections, collaborations, and resilience amongst these organisations; a luxury that many of these groups individually cannot afford but results in an integrated set of services for local young people
· Priority 2: continuing to provide funding to ANZAC day events in the local board area
· Priority 3: renewing the Ōrewa Library, to ensure one of the most valuable public assets in Ōrewa is fit for purpose and continues to be able to offer free recreational reading and learning
· Priority 4: East Coast Bays Community Centre refurbishment, to upgrade and extend the lifetime of this Browns Bay community asset
· Priority 5: continuing to fund pest plant and animal control, and the coordination of environmental volunteers, without which our native bush would be quickly degraded.
18. 1756 submissions were received on the Hibiscus and Bays Local Board’s priorities for 2023/2024. The majority of local respondents supported all or most of the priorities, or 1354 in these two green categories below.
19. Restoring the environment and libraries were clearly the most important to submitters through their comments. Conversely, there was little support for priority 2: providing funding to ANZAC day events.
20. In addition, a follow up question asked submitters to rank which three areas they supported most. (Table below). This clearly showed the support for arts and culture facilities.
21. Consultation feedback on local board priorities will be considered by the local board when approving their local board agreement between 20-22 June 2023.
22. The council’s proposed response to mitigate the budget pressures for 2023/2024 included a proposed reduction of $16 million to local board operational funding – this would require the Hibiscus and Bays Local Board to reduce its planned operating spend by $838,000.
23. To do this, local boards would need to make tough decisions, prioritising what they do and where they invest. Aucklanders were asked for their priorities given the proposed reduction would mean some local activities would have to be discontinued, have reduced spending, or increased fees.
24. Key themes of note across the feedback received included:
· many respondents did not support any reduction in spending on environmental infrastructure, or activities that could mitigate climate change
· most submitters on the topic of libraries did not support any reduction in library opening hours
· there were also many submissions relating to the importance of supporting youth and the most vulnerable especially the homeless.
Information on submitters
25. The tables and graphs below indicate the demographic categories people identified with. This information only relates to those submitters who provided demographic information.
Age breakdown of submitters
Ethnicity breakdown of submitters
Requests for local funding
26. There were no requests for local funding through the Annual Budget 2023/2024 consultation.
Overview of feedback received on regional topics in the Annual Budget 2023/2024 from the Hibiscus and Bays Local Board area
27. The proposed Annual Budget 2023/2024 sets out Auckland Council’s priorities and how the council plans to pay for them. Consultation on the proposed Annual Budget asked submitters to respond to key questions on:
1. operating spending reductions
2. amending Auckland International Airport Limited (AIAL) Shareholding Policy
3. managing rates and debt
4. storm response
5. local board priorities (covered in ‘Feedback received for the Hibiscus and Bays Local Board for 2023/2024’ section above)
6. changes to other rates, fees and charges.
28. Submitters were also encouraged to give feedback on any of the other matters included in the Annual Budget 2023/2024 consultation document.
29. The submissions received from the Hibiscus and Bays Local Board area on these key issues are summarised below, along with an overview of any other areas of feedback on regional proposals with a local impact.
Key Question 1: operating spending reductions
30. Aucklanders were asked for feedback on a proposal to save $125 million through reductions including:
· maintaining the current reduced number of public transport services for 2023/2024 to save $21 million
· reducing funding to Tātaki Auckland Unlimited to save a further $27.5 million with effects on service delivery (including economic development and tourism promotion) and pricing at venues it manages such as Auckland Zoo, Auckland Art Gallery and stadiums
· reducing regional services such as community and education programmes, arts and culture programmes, regional events, economic development and other social services activities such as homelessness funding, community empowerment and funding for youth centres to save $20 million
· reducing local board funded activities across all boards to save $16 million (feedback received on local impacts of the reduction is outlined in the ‘Feedback received for the Hibiscus and Bays Local Board for 2023/2024’ section above)
· reducing contestable grants to save $3 million
· no longer directly providing early childhood education services to save $1 million.
31. The graphs below give an overview of the responses to this question from the Hibiscus and Bays Local Board area.
32. Key themes of note across the feedback received included:
· the less knowledge there was of a service by a submitter, generally the less interest there was in retaining it
· majority of submissions were opposed to most reductions and very focused on retaining or boosting public transport, funding climate action, youth and community and social services (homeless funding, arts, libraries, ECE’s) with a lesser number looking for cost savings via Auckland Council being more efficient
· many of those submissions wishing to proceed with the reductions made comments about “core services”, without reference to the legislative responsibilities of local government and the four wellbeing’s. Many of the submitters definitions of core services excluded the social and cultural wellbeing’s, focussing only on infrastructure
· It was noted by the local board that the majority of the mana whenua with an interest in the local board area, did not support proceeding with these reductions.
Key Question 2: amending Auckland International Airport Limited (AIAL) Shareholding Policy
33. Aucklanders were asked about a planned change to the AIAL Shareholding Policy which will allow the sale of some or all of Auckland Council’s shares in AIAL. The proposal is to sell all the shareholding (currently around 18 per cent of shares in Auckland Airport) which would reduce debt by around $1.9 billion. This is projected to reduce interest costs by $87 million per year.
34. Other options were considered, including keeping all the shares or a partial sale. These options would contribute less towards the budget reduction target and require other actions such as further increasing rates or debt.
35. The graphs below give an overview of the responses to this question from the Hibiscus and Bays Local Board area.
36. Key themes of note across the feedback received included:
· those seeking a full sale thought this was a sensible approach as it was the lever that would result in the least impact on those struggling financially, there was also some commentary about the lack of return on this investment, and the lack of a controlling interest
· for those seeking a partial sale, there was much commentary about it providing a balanced approach – some revenue now, and future ability to either sell or utilise the shareholding
· many commenters did not wish for these shares to be sold to foreigners
· for those against the sale, they felt that this was a strategic asset for Auckland, and selling it was a mistake as it generated income, even though this was not the case presently.
Key Question 3: managing rates and debt
37. Aucklanders were asked to provide feedback on a proposal of a total rates increase for the average value residential property of around 4.66 per cent or $154 per year. This would be achieved through:
· an average increase in general rates of seven per cent across all existing properties, including non-residential
· reducing the Natural Environment Targeted Rate (NETR) and Water Quality Targeted Rate (WQTR) by around two thirds and using the money already collected from these rates to continue delivering these work programmes as planned in 2023/2024
· pausing the long-term differential strategy (the split between business and residential rates) for one year. Under the current policy, annual increases to general rates for business properties are less than for non-business properties so that over time the share of general rates paid by business properties is fairer.
38. Aucklanders were also asked about the proposal to increase council’s use of debt by up to $75 million in the 2023/2024 year. The proposal involves using the debt to fund some capital expenditure that is currently planned to be funded by operating revenue.
39. The graphs below give an overview of the responses to this question from the Hibiscus and Bays Local Board area.
40. Key themes of note across the feedback received included:
· the majority of submitters wanted a higher general rates increase, with 53 per cent clearly for this as opposed to 25 per cent against, and numerous submitters in the “other” category also asked for higher rates and debt
· many of those seeking higher rates, indicated that an average general increase of at least $3 per week was acceptable, especially if this stopped cuts to services.
· many submitters did not understand the legislative and financial policies of local government, as they sought either a budget surplus be run, or that debt be reduced to near zero. There is a legislative requirement for local authorities to run a balanced budget, and a financial policy to use debt to fund capital work – thereby spreading the cost for capital assets over all the generations that use them
· extremely few, if any, submitters agreed with a reduction in the Natural Environment Targeted Rate, or the Water Quality Targeted Rate, rather most comments on this topic were clear that this is a vital funding mechanism to provide climate change mitigations, avoid environmental degrading and provide clean beaches
· where the proposal for greater use of debt was mentioned, the ability of council to borrow cheaply and pay this off were mentioned as reasons to increase debt. Also debt was considered a useful level to avoid service reductions, and would evenly spread the coast of council facilities across everyone
· most of the mana whenua with an interest in the Hibiscus and Bays area either supported a raise in rates and debt or did not directly answer this question. Some indicated that decisions on this topic should be mindful of the implications for those most vulnerable in society.
Key Question 4: Storm response
41. Aucklanders were asked about a proposal to increase council’s operating budgets by around $20 million each year to improve the ability to prepare for and respond to future storms. This would likely require rates to increase for 2023/2024 by around an additional one per cent (on top of the 4.66 per cent increase proposed to address the budget shortfall).
42. The graphs below give an overview of the responses to this question from the Hibiscus and Bays Local Board area.
43. Key themes of note across the feedback received included:
· the supporters of introducing this extra charge argued that this work needed to be done, and was vital for the future of the city
· the detractors thought that current budgets should be funding this, even if money needed to re-prioritised to do so
· the large “other” sections often commented that this was either a central government responsibility, or would not be necessary if basic maintenance took place (such as clearing drains), or if entire high-risk areas such as flood zones and cliff top properties were red zoned, as had happened in Christchurch.
Key Question 5: local board priorities
44. Aucklanders were asked for feedback on the local impacts of the Annual Budget, feedback received on this is outlined in the ‘Feedback received for the Hibiscus and Bays Local Board for 2023/2024’ section above.
Key Question 6: changes to other rates, fees and charges
45. Aucklanders were asked for feedback on proposals to increase some targeted rates and other regulatory fees and charges as set out below. If the changes are not made, then general rates may need to be higher than proposed.
Waste management rates changes
· A 10.6 per cent increase to the base rate and targeted rate charges for non-standard refuse bins (in the former Auckland (ACC) and Manukau (MCC) city council areas)
· introduction of a fee for swapping bin sizes
· extension of the food scraps targeted rate to the new areas that will receive the service this year.
Changes to other rates, fees and charges
· re-prioritisation of additional bus service expenditure which was planned to be funded by the Climate Action Targeted Rate (CATR) for the 2023/2024 year
· Swimming Pool/Spa Pool Fencing Compliance Targeted Rate: increases to reflect the actual costs of the service, and an increase in the fee for follow up inspections
· amendment to Community Occupancy Guidelines
· changes to the Rodney Drainage District Targeted Rate
· establishment of a Business Improvement District (BID) and BID targeted rate for Silverdale
· animal management fees
· some building and resource consenting fees
· other regulatory fees such as food licensing registration, micro-mobility operator fees and swimming pool inspections
· cemetery fees
· review of fees for bookable spaces in council managed pool and leisure facilities.
46. The table below gives an overview of the responses to this question from the Hibiscus and Bays Local Board area.
47. Key themes of note across the feedback received included:
· there were very few comments on these topics, apart from issues with the reliability of public transport and therefore a desire to retain the Climate Action Targeted Rate.
Other matters for feedback
48. Aucklanders were asked to feedback on the Tūpuna Maunga Authority Operational Plan 2023/2024 which sets out a framework in which the council must carry out the routine management of 14 Tūpuna Maunga.
49. Aucklanders were also asked what else is important to them and if they had any feedback on any other issues.
50. There was almost no feedback in this section relating to these topics from residents of the Hibiscus and Bays local board area.
Annual Budget 2023/2024 related policies
The following proposals were consulted on alongside the Annual Budget:
Revenue and Financing Policy
51. The proposal to pause the Long-Term Differential Strategy (LTDS) for one year would require an amendment to the Revenue and Financing Policy.
52. Under the current rating policy, businesses pay a greater share of rates than non-business properties. Businesses make more use of council services like transport and stormwater. They also place more demand on these services. Council previously decided that the level of business rates is too high and should be reduced gradually over time. The LTDS currently lowers the total amount of general rates (UAGC and value-based general rate) for businesses in equal steps, from 31 per cent in 2022/2023 to 25.8 per cent by 2037/2038.
53. 146 submissions were received on the proposal. Of these, 99 supported the proposal and 41 did not support the proposal. A further six either provided another response or did not know. Comments from those in support included businesses being in a position to afford the increase and the impact of rates on residential ratepayers.
54. Responses from those who did not support the proposal included the view that business rates are too high.
55. Eight of the 146 responses were from people who identified as Māori with four in support of the proposal, three not in support and one who did not know.
56. The Property Council did not support the proposal citing concern for increased costs on businesses and business rates being too high.
Māori Land Rates Remission and Postponement Policy
57. The council is proposing to amend the Māori Land Rates Remission and Postponement Policy to provide a partial remission of rates to general title papakāinga, where that land is:
· protected from being sold out of Māori ownership
· for the sole use of hapū/iwi (tribe).
58. This recognises the similarities between these properties and papakāinga on Māori freehold land. The proposed remission would apply a discount of up to 10 per cent of the rateable land value. This is similar to what is applied to Māori freehold land.
59. There were 40 submissions from individuals. Of these 20 were in support of the proposal and 20 did not support the proposal. Responses in support included the positive benefits to Māori in retaining land. Responses from those who did not support included Māori not having special treatment, and concern about the costs to other Aucklanders.
60. Eight of the 40 responses were from individuals who identified as Māori, all of who supported the proposal. Ngāti Whātua Ōrākei also submitted in support of the proposal.
Local board advocacy
61. Local boards can also provide approved advocacy initiatives which considers the consultation feedback above. This allows the Governing Body to consider these advocacy items when making decisions on the Annual Budget 2023/2024 to the Governing Body in June.
62. The advocacy initiatives approved by the local board will be included as an appendix to the 2023/2024 Local Board Agreement.
Local board input on regional topics in the Annual Budget 2023/2024
63. Local boards have a statutory responsibility for identifying and communicating the interests and preferences of the people in its local board area in relation to Auckland Council’s strategies, policies, plans, and bylaws, and any proposed changes to be made to them. This report provides an opportunity for the local board to provide input on the council’s proposed Annual Budget 2023/2024, proposed changes to the Revenue and Financing Policy and Māori Land Rates Remission and Postponement Policy.
Tauākī whakaaweawe āhuarangi
Climate impact statement
64. The decisions recommended in this report are part of the Annual Budget 2023/2024 and local board agreement process to approve funding and expenditure over the next year.
65. Projects allocated funding or proposed to have reduced funding through this Annual Budget process will all have varying levels of potential climate impact associated with them. The climate impacts of projects Auckland Council chooses to progress, are all assessed carefully as part of the council’s rigorous reporting requirements.
Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
66. The Annual Budget 2023/2024 is an Auckland Council Group document and will include budgets at a consolidated group level. Consultation items and updates to budgets to reflect decisions and new information may include items from across the group.
Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
67. The local board’s decisions and feedback are being sought in this report. The local board has a statutory role in providing its feedback on regional plans and policies.
68. Local boards play an important role in the development of the council’s Annual Budget. Local board agreements form part of the Annual Budget. Local board nominees have also attended Governing Body workshops on the Annual Budget.
Tauākī whakaaweawe Māori
Māori impact statement
69. Many local board decisions are of importance to and impact on Māori. Local board agreements and the Annual Budget are important tools that enable and can demonstrate the council’s responsiveness to Māori.
70. Local board plans, developed in 2020 through engagement with the community including Māori, form the basis of local board area priorities. There is a need to continue to build relationships between local boards and iwi, and the wider Māori community.
71. Analysis provided of consultation feedback received on the proposed Annual Budget includes submissions made by mana whenua and the wider Māori community who have interests in the rohe / local board area.
72. Ongoing conversations between local boards and Māori will assist in understanding each other’s priorities and issues. This in turn can influence and encourage Māori participation in the council’s decision-making processes.
73. Some projects approved for funding could have discernible impacts on Māori. The potential impacts on Māori, as part of any project progressed by Auckland Council, will be assessed appropriately and accordingly as part of relevant reporting requirements.
74. The Annual Budget 2023/2024 and related policies includes a proposed amendment to the Māori Land Rates Remission and Postponement Policy covered in the ‘Annual Budget related policies’ section above.
Ngā ritenga ā-pūtea
75. This report is seeking the local board’s decisions on financial matters in the local board agreement that must then be considered by the Governing Body.
76. The local board also provides input to regional plans and policies. There is information in the council’s consultation material for each proposal with the financial implications of each option outlined for consideration.
Ngā raru tūpono me ngā whakamaurutanga
Risks and mitigations
77. The council must adopt its Annual Budget, which includes local board agreements, by 30 June 2023. In order to meet this timeframe, the local board is required to make recommendations on these local matters for the Annual Budget by mid-May 2023 and present to the Governing Body to make decisions on key items to be included in the Annual Budget on 8 June 2023.
Ngā koringa ā-muri
78. The local board will approve its local board agreement in June 2023 and corresponding work programmes in July 2023.
79. Recommendations and feedback from the local board will be provided to the Governing Body for consideration in its decision-making.
80. The final Annual Budget 2023/2024 (including local board agreements) will be adopted by the Governing Body on 29 June 2023.
There are no attachments for this report.
Matthew Kerr – Senior Local Board Advisor
Lesley Jenkins - Local Area Manager