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Hibiscus and
Bays Local Board
09 May 2023
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Hibiscus
and Bays Local board consultation feedback and input into the Annual Budget
2023/2024
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.
Whakarāpopototanga matua
Executive summary
4. Local
board agreements set out annual funding priorities, activities, budgets, levels
of service, performance measures and initiatives for each local board area.
Local board agreements for 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.
Ngā tūtohunga
Recommendation/s
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.
Horopaki
Context
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.
Consultation feedback overview
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.
Responding
to the budget challenge
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.
Key themes
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.
Key
themes
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.
Key themes
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.
Key themes
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.
Key themes
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.
Key themes
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.
Feedback
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.
Feedback
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
Financial implications
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
Next steps
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.
Ngā tāpirihanga
Attachments
There are no attachments for
this report.
Ngā kaihaina
Signatories
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Author
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Matthew Kerr – Senior Local Board Advisor
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|
Authoriser
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Lesley Jenkins - Local Area Manager
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