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Resolution
number DT/2023/154
MOVED by Member G Wood, seconded by Chairperson T van
Tonder:
That
the Devonport-Takapuna Local Board:
a)
supports the GFR (in-principal) 2021 decision to achieve Local
Board funding equity through the targeted distribution of unallocated growth
and renewals to be implemented within a 10 year period, noting this approach
would ensure there is no reduction in current local board funding levels.
b)
supports the shift to equity funding to support access to
Council services for all residents of Tāmaki Makaurau/Auckland,
especially in areas of greatest need with high levels of deprivation, but not
at the cost of decreasing those services in other Local Board areas.
c)
supports locally driven initiatives (LDI) funding being included
in the scope for this analysis, in the light of increased local board
decision-making.
d)
support excluding the following items from the scope:
i)
funding for discrete projects
ii)
other specific-purpose funds such as slips remediation and
coastal renewals
iii)
heritage asset renewals
iv)
targeted rate funding
v)
other local activities such as local environmental management,
local planning and development and local governance
vi)
most unallocated budgets, with the possible exception of some
minor capex for response renewals and non-growth investment
e)
support considering capital expenditure (CAPEX) and operational
expenditure (OPEX) funding separately for achieving equity.
f)
provides the additional feedback:
g)
RATES
i)
notes that the Devonport-Takapuna Local Board is home to 3.5% of
Auckland’s population and contributes 4.3% of the total residential
rate take.
ii)
notes that the Devonport-Takapuna Local Board receives 3.8% of
the total allocation for Local Boards.
iii)
notes that the Devonport-Takapuna Local Board receives 5.3% of
the total CAPEX allocation for Local Boards.
iv)
Notes that under any of the proposed equity funding models the
Devonport-Takapuna Local Board percentage share of both OPEX and CAPEX will
reduce further.
h)
Option ii: New Funding
i)
notes that a rapid shift to equity funding using only new
funding requires $170million of additional OPEX and $210million of additional
CAPEX and as such would result in a potential rate increase of 19%.
ii)
a rate increase of 19% would increase the average residential
property rates in the Devonport-Takapuna area from $4,694 (FY24) to $5,585;
and yet the Devonport-Takapuna area would not see any additional gains for
this increase in household cost.
i)
Option (iv) A to (iv) D
i)
notes that any combination of reallocation and new funding will
result in a loss of existing funding to the Devonport-Takapuna Local Board as
well as a rate increase.
ii)
raises concern that any of these scenarios will result in a loss
of public confidence in Council and a growing frustration between residents
who contribute more but receive less and those who benefit from the changes.
j)
Transition approach to reach a near equity level
i)
notes the option of new funding only, rather than a
redistribution will require an additional $65million in OPEX and $77million
in CAPEX. As such this would result in an additional 7.1% rate increase;
again costing Devonport-Takapuna properties more than the average home and
receiving no benefit.
ii)
notes that other forecast scenarios that consider a reallocation
of between 10% and up to 75% of Local Board funding will result in a net loss
of funding coupled with a rate increase.
k)
Asset-based funding
i)
does not consider it right that Devonport-Takapuna now needs to
lose the facilities and assets they have invested in over the years in order
to recalibrate the funding scales.
ii)
notes that Devonport-Takapuna Local Board has not been provided a
comparative list of assets between all local boards and nor do we understand
what the Devonport-Takapuna total share of assets is as a percentage of all
Local Board assets.
iii)
notes that the Local Board has not been provided with a category
list of assets that this funding is calculated upon and as such is still
uncertain whether assets such as inaccessible esplanade reserves, watercare
assets, coastal assets or other assets that are not able to be optimised (or
accessed) are being included in this assessment.
iv)
notes that Devonport-Takapuna Local Board has not been provided
a breakdown on operational and capital costs being incurred by each asset so
has no clear understanding of what is potentially at stake when/if our
funding gets decreased.
v)
expresses concern that there is already a lack of appropriate
funding to maintain and renew existing assets and that a further loss of
funding proposed through any redistribution model will mean an even greater
degradation of our assets that the community enjoys.
vi)
expresses concern that resourcing and the establishment of
appropriate processes will not be provided within three years to support the
Local Board to make the hard decisions they will be forced to make with
respect to asset sales; and instead our assets will languish and degrade with
no operational or capital expenditure tagged to them, causing upset and
frustration in the community. There is a risk that faith in local government
will be lost.
l)
Other Assets
i)
notes that the Devonport-Takapuna Local Board is responsible for
the upkeep and maintenance of 8 heritage assets (Allenby Ave Girl Guides Den,
Allenby Ave Scouts Hall, Balmain Reserve public toilets, Claystore, 139 Beach
Road, Battery & Observation Post Building at Kennedy Park, WWII Tunnels
Kennedy Park, The Pumphouse Café & Building and potentially The
Vic theatre (if the Trust model ever changes) and is not in a financial
position to do justice to these buildings under the existing funding model.
The Barracks at Fort Takapuna are also heritage listed. Whilst we do not own
them we are responsible for the maintenance and renewal of them under the
agreement with DOC. The Board will be in a difficult position if funding is
reduced any further.
ii)
recommends that Heritage assets across the city are regionally
funded and as such are ‘taken off the books’ of Local Boards;
unless adequate funding is provided for at a local level.
m)
Other matters
i)
requests that the JGWP investigates greater equity rates take
alongside a review of the Uniform Annual General Rates Charge across all of
Auckland to create equity in income generation as well as funding
allocation.
ii)
notes the vast amount of investment outside of the Devonport-Takapuna
Local Board area such as the City Rail Link, Light Rail, Central interceptor
etc, and questions why these investments are not considered alongside the
funding equity conversation.
iii)
notes that Council has set a direction to shift away from
‘bricks and mortar’ services and instead supports the provision
of fewer multi-purpose facilities and services to communities. The Local
Board questions whether this will be achieved with a reallocation. Some
Boards will be forced to sell assets whilst others will be building and
creating more.
iv)
express concern that unintended consequences will arise from such
a rapid transition. Of particular concern is the expert advice and guidance,
and resourcing local boards will require to make smart decisions with either
their gains or losess in total funding. The Local Board is concerned that
this rapid transition will lead to poor decision making and lower quality
outcomes for not just the local communities but the wider Auckland region.
v)
requests Auckland Council looks at the distribution of current
assets and takes a gaps analysis approach to funding, to ensure access to
open space and community facilities is equal across the region; noting in
areas that are zoned commercial or light industrial will not require the same
quantity of open space and community service as areas that are wholly
residential.
vi)
raises concern that the perception of some local boards being
‘wealthier’ than others disguises the pockets of need and
deprivation that exist in all areas.
vii)
requests Auckland Council lobby Government to provide an
increase in investment for Auckland given Aucklanders contribute to 38% of
GDP.
n)
requests this feedback be circulated to the Mayor, all
Councillors of the Governing Body and all Local Board Chairs.
o)
request an opportunity to discuss and workshop the
recommendations of the JGWP with the Governing Body.
CARRIED
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