I hereby give notice that an extraordinary meeting of the Budget Committee will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Wednesday, 6 December 2023

10.00am

Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

 

Komiti mō te Tahua Pūtea / Budget Committee

 

OPEN AGENDA

 

 

 

MEMBERSHIP

 

Mayor

Wayne Brown

 

Deputy Chairperson

Cr Greg Sayers

 

Members

Cr Andrew Baker

Cr Mike Lee

 

Cr Josephine Bartley

Cr Kerrin Leoni

 

Cr Angela Dalton

Cr Daniel Newman, JP

 

Cr Chris Darby

Deputy Mayor Desley Simpson, JP

 

Cr Julie Fairey

Cr Sharon Stewart, QSM

 

Cr Alf Filipaina, MNZM

IMSB Chair David Taipari

 

Cr Christine Fletcher, QSO

Cr Ken Turner

 

Cr Lotu Fuli

Cr Wayne Walker

 

Cr Shane Henderson

Cr John Watson

 

Cr Richard Hills

Cr Maurice Williamson

 

IMSB Member Tony Kake, MNZM

 

 

(Quorum 11 members)

 

 

 

Sonja Tomovska

Kaitohutohu Mana Whakahaere Matua / Senior Governance Advisor

 

1 December 2023

 

Contact Telephone: 09 890 8022

Email: sonja.tomovska@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 

 


Budget Committee

06 December 2023

 

ITEM   TABLE OF CONTENTS            PAGE

1          Ngā Tamōtanga | Apologies                                                   5

2          Te Whakapuaki i te Whai Pānga | Declaration of Interest                                                               5

3          Ngā Petihana | Petitions                                       5  

4          Ngā Kōrero a te Marea | Public Input                 5

5          Ngā Kōrero a te Poari ā-Rohe Pātata | Local Board Input                                                            5

6          Ngā Pakihi Autaia | Extraordinary Business     5

7          Long-term Plan 2024-2034: Overview to decision making                                                    7

8          Long-term Plan 2024-2034: regional topics for consultation - local board input (Covering report)                                                                  15

9          Long-term Plan 2024-2034: Mayoral Proposal                                                                              17

10        Long-term Plan 2024-2034: Other Rates and Fees Matters                                                        23

11        Long-term Plan 2024-2034: Franklin Local Board Paths Targeted Rate for consultation   43

12        Long-term Plan 2024-2034: Proposed LTP Performance Measures                                      45

13        Long-term Plan 2024-2034: Housing and growth infrastructure                                         55

14        Long-term Plan 2024-2034: Communication and Engagement Plan                                        61

15        Long-term Plan 2024-2034: Summary of Budget Committee workshops and briefings - 6 December 2023                                                71

16        Te Whakaaro ki ngā Take Pūtea e Autaia ana | Consideration of Extraordinary Items

 

 


1          Ngā Tamōtanga | Apologies

 

 

 

2          Te Whakapuaki i te Whai Pānga | Declaration of Interest

 

 

 

3          Ngā Petihana | Petitions

 

There is not petitions section.

 

 

 

4          Ngā Kōrero a te Marea | Public Input

 

There is no public input section.

 

 

 

5          Ngā Kōrero a te Poari ā-Rohe Pātata | Local Board Input

 

There is no local board input section.

 

 

 

6          Ngā Pakihi Autaia | Extraordinary Business

 

 

 


Budget Committee

06 December 2023

 

Long-term Plan 2024-2034: Overview to decision making

File No.: CP2023/18003

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To recap the long-term plan (often referred to as the 10-year budget) process to date, provide an overview of the decisions required now, and set out the next steps that will be undertaken to support consultation with Aucklanders on the Long-term Plan 2024-2034.

Whakarāpopototanga matua

Executive summary

2.       All councils are required, under the Local Government Act 2002, to adopt a long-term plan every three years.

3.       The process to develop council’s long-term plan for the ten-year period 2024-2034 began in June 2023 with a series of facilitated sessions with the Governing Body on the strategic direction for the Long-term Plan 2024-2034.

4.       This strategic direction was subsequently provided to staff across the group through the Guidance Document attached to this report (Attachment A). This guidance and direction has underpinned the development of, and the process for, this long-term plan.

5.       Between August and December, a total of 49 briefings and workshops (inclusive of local board briefings) were held covering topics like climate risk and disclosure obligations, key legislative and audit requirements for a long-term plan, and key issues and priorities as set out in Attachment A of this report.

6.       Today, the Budget Committee will consider investment and funding proposals as set out in the Mayoral Proposal, as well as other key matters that we are required to include as part of consultation for any long-term plan.

7.       The communications and engagement plan is also included on today’s agenda outlining our approach to consultation with Aucklanders in March 2024. Subject to decision-making, this will inform the next phase of this process. 

8.       Following decisions made today:

·        Staff from across the group will prepare consultation material to reflect the decisions made, to support consultation with Aucklanders. The primary focus of the consultation material will be to clearly set out the key issues of importance for the Auckland Council Group and the communities of Auckland, including the implications of each of the options for addressing those issues on rates, debt and levels of service. Key issues for local boards will also be included.

·        During December 2023, local boards will finalise and adopt their local material for inclusion in the consultation material. 

·        The consultation material will be audited in January-February 2023 by Audit NZ on behalf of the Office of the Auditor-General. An audit opinion will be included in consultation material in time for adoption by the Budget Committee in February 2024.

9.       Current legislation prohibits us from including content relating to water services in our long-term plan. However, given the uncertainty related to potential changes to government policy direction or legislation, staff will prepare information as it relates to water services to be ready to respond to any potential change if made before we are scheduled to begin consultation.


 

 

 

10.     Consultation with Aucklanders is currently scheduled to run from 28 February to 28 March 2024. 

11.     Following feedback from the community (both individuals and community groups), mana whenua and mataawaka, and local boards, the Budget Committee will reconsider the proposals alongside any further staff advice and necessary financial updates to make final decisions on the Long-term Plan 2024-2034 in May 2024.

12.     The Governing Body will then be asked to adopt the final Long-term Plan 2024-2034 (following audit of the final documentation) in June 2024, to enable rates to be set for the 2024/2025 financial year.

 

Ngā tūtohunga

Recommendation/s

That the Budget Committee:

a)      tuhi ā-taipitopito/note the contents of this report, which sets the context for the other reports and decisions on today’s agenda.

b)      tuhi ā-taipitopito/note that consultation as part of the Long-term Plan 2024-2034 is also required on the following items which will be reported to the Governing Body meeting on 14 December 2023:

i)       the draft Tūpuna Maunga Authority Annual Operational Plan

ii)       some potential changes in relation to waterfront land in the city centre.

 

Horopaki

Context

13.     The Local Government Act 2002 requires all councils to adopt a long-term plan every three years. The long-term plan sets out council’s activities and the related community outcomes for the Auckland region as well as providing integrated decision-making and co-ordination of the council’s resources.

14.     The long-term plan must be adopted before the commencement of the first year it relates to, after having consulted with the community through a special consultative procedure.

15.     During deliberations on the Annual Budget 2023/2024, the Governing Body resolved that the approach to the Long-term Plan 2024-2034 should involve enhanced political participation and oversight to develop council’s priorities, enabling full consideration of options for revenue, expenditure, and assets, and providing for independent and contestable facilitation and advice.

16.     As a result, facilitated sessions were held with the Governing Body to establish strategic direction for the Long-term Plan 2024-2034. The direction was provided in a Guidance Document which is attached to this report (Attachment A). This guidance has underpinned the development of and the process for this long-term plan.

17.     As part of the same deliberations on the Annual Budget 2023/2024, the Governing Body also resolved to establish political working groups to consider key matters for the development of the long-term plan. These groups have subsequently provided recommendations to inform the Mayoral Proposal, which is included as a separate item on today’s agenda.


 

 

18.     As part of changes to the Financial Markets Conduct Act 2013 (FMC Act), the council is required to prepare an annual group climate statement and make a number of climate-related disclosures including in relation to the Governing Body’s consideration of climate risks and opportunities.  This long-term plan process provides the council the opportunity to consider climate-related risks and opportunities when developing its strategy, including by providing an opportunity to align capital deployment with the group's climate goals and ensure the group's climate-related risks and opportunities are managed. Advice and training to support the Governing Body has been provided through a series of workshops. Further information on these requirements is included as Attachment C to this report.

19.     Auckland Council and the Tūpuna Maunga o Tāmaki Makaurau Authority must agree the Tūpuna Maunga Annual Operational Plan each year pursuant to section 60 of Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014.

20.     Auckland Council is required to include a summary of the Tūpuna Maunga Authority Operational Plan in its annual budget (or long-term plan every three years). A summary of the draft Tūpuna Maunga Authority Annual Operational Plan must also be included in consultation material. 

21.     The draft operational plan will be included on the Governing Body agenda on 14 December 2023 for agreement for inclusion in the long-term plan consultation material. 

Tātaritanga me ngā tohutohu

Analysis and advice

Developing the Long-term Plan 2024-2034

22.     The process to develop council’s Long-term Plan 2024-2034 began in June 2023. Attachment B sets out the key phases and the political engagement to support this process. Key elements of the process to date have been:

i)       Four facilitated sessions with elected members in June and July 2023 to develop the strategic direction from the Governing Body.

ii)       A total of 49 briefings and workshops (inclusive of local board briefings) were held between August and December 2023 on the following topics and issues (material from these workshops is released on today’s agenda):

A)      Legislative requirements (including key long-term plan components like the Infrastructure Strategy and Financial Strategy)

B)      Performance framework and measures

C)      Climate risk, disclosures, and climate impacts

D)      Investment options across the group

E)      Rating policy, other fees and charges

F)      Fairer funding of local boards

G)      Supporting trade-offs

H)      Deliberative democracy and engagement approaches

I)       Council-controlled organisation (CCO) board to governor discussions

J)       Housing and growth

K)      Co-governance entities

L)      Local board input.


 

 

iii)      Dedicated workshops on the draft Mayoral Proposal and other items required for consultation were held on 28 and 29 November.

iv)      Regular weekly updates continue to be provided to ensure Budget Committee members are kept across the advice and information being provided.

23.     CCOs have provided advice on a range of issues as they relate to individual entities and the group. This includes advice on investment options in response to requests that were made through the Guidance Document attached to this report. Further details on these investment options have been included as part of the Mayoral Proposal on today’s agenda.

24.     The 21 local boards provided their informal input on the issues that were discussed through workshops up until 13 November as part of Budget Committee workshops on 22 November 2023. Formal input from local boards is outlined in another report on today’s agenda.

25.     Today the Budget Committee will consider regional items for consultation as they relate to the other items on today’s agenda. The Mayoral Proposal sets out the Mayor’s priorities and considerations on the key issues and scope for consultation.

26.     Once decisions are made today, staff from across the group will prepare draft consultation material to reflect those decisions including key compliance requirements. On behalf of the Office of the Auditor General, Audit New Zealand will audit the consultation material ahead of adoption, scheduled for February 2024.

27.     Current legislation prohibits us from including content relating to water services in our long-term plan. However, given the uncertainty related to potential changes to government policy direction or legislation, staff will prepare information as it relates to water services to be ready to respond to any potential change if it is made before we are scheduled to begin consultation.

Other matters for consultation

28.     Other items on today’s agenda include recommendations to include specific items for consultation. These include other rates and fees matters and a targeted rate proposed by the Franklin Local Board.

29.     Local boards will separately agree local consultation content for inclusion in the consultation material for the Long-term Plan 2024-2034.

30.     We are required to include information relating to the Tupuna Maunga Authority draft operational plan as part of consultation. Decisions on the draft plan are due to be made at the Governing Body meeting on 14 December. Once decisions are made, we will incorporate the relevant detail in consultation material.

31.     Minor amendments to the CCO Accountability Policy will be included as part of consultation, as required under legislation. The proposed amendments to the CCO Accountability Policy reflect changes in legislation, as well as new or updated council policies and plans. Any changes to CCO activities made through decision-making for the Long-term Plan 2024-2034 (following public consultation) will also need to be reflected in the final CCO Accountability Policy.

32.     On 28 November, Eke Panuku presented detail on a potential change in lease and land use for Sanford Site: 22-32 Jellicoe Street at a Budget Committee workshop.

33.     At the same workshop, Eke Panuku also discussed the renewal of coastal occupation consents for existing structures and activities within parts of the Waitemata Harbour and implications for a management agreement relating to the inner Viaduct Harbour.

 


 

 

34.     Consultation as part of the Long-term Plan 2024-2034 is required on the potential change in lease and land use for the Sanford site. Further advice is required as to whether the issues relating to the coastal occupation permit renewal and management agreement requires consultation. Eke Panuku will provide an update and summary of the issues, along with recommendations relating to inclusion of these items for consultation to the Governing Body meeting on 14 December 2023.

Tauākī whakaaweawe āhuarangi

Climate impact statement

35.     Attachment C to this report provides an overview of the FMC Act requirement that the council make an annual group climate statement. The climate statement is required to include a number of disclosures, including how the Governing Body considers climate-related risks and opportunities when developing and overseeing implementation of the council’s strategy and the extent to which transition plan aspects of the council’s strategy are aligned with its internal capital deployment and funding decision-making processes.  

36.     This long-term plan process provides the council the opportunity to consider climate-related risks and opportunities when developing its strategy, including by providing an opportunity to align capital deployment with the group's climate goals and ensure the group's climate-related risks and opportunities are managed.

37.     Advice and training on climate risks, disclosure obligations and a climate assessment of investment options including a summary of opportunities to consider through this long-term plan was provided to the Budget Committee through a series of workshops. Climate continues to be highlighted as a key issue for this long-term plan and more broadly, for the council group and the region.

38.     This work has been led by a group of council staff involved in the climate workstream that sits within the project. This workstream has also provided review and support of other key deliverables and advice, including the drafting of the consultation material. This is the first time this project has included a stand-alone climate workstream.

39.     An assessment of climate impacts as they relate to investment options was provided to the Budget Committee in a workshop. The material covered in this session is included in the release of workshop material on today’s agenda.

40.     Consultation material will include detail and information relating to the top climate risks for the group as well as detail on the potential climate impacts of some proposals, where necessary. Climate investment will also likely feature in the consultation material, subject to decision-making.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

41.     CCOs have been key to the development of the long-term plan so far and the advice and information that has been provided to support decision-making. Depending on decisions made on 6 December, potential impacts across the group will be more clearly defined.

42.     It is likely that a range of investment options for different services and departments across the group will be provided for during consultation. This will include options that could impact service levels and capital investment. Once decisions on consultation are made, staff from across the group will work to ensure we have the appropriate level of detail to support these proposals for consultation.

43.     Staff have provided briefings and updates to CCO boards and executive forums throughout the process.

 


 

 

 

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

Local impacts and local board views

44.     Local board chairs have been invited to all workshops and briefings on the Long-term Plan 2024-2034. Additionally, almost all material covered in workshops has been provided to all local board members as part of regular weekly briefings.

45.     Local boards had an opportunity to provide feedback on material provided to the Budget Committee up until 13 November through workshops sessions that were held on 22 November. Following that, local boards met to consider the draft Mayoral Proposal and formally resolved on their input and advocacy on regional issues outlined in the Mayoral Proposal. This input has been summarised and included in a separate report on this agenda to support decision-making, as well as to recognise their role in this process.

46.     Local boards will separately agree local consultation content for inclusion in the Long-term Plan 2024-2034 consultation material.

Tauākī whakaaweawe Māori

Māori impact statement

47.     Early engagement with iwi leaders has been led by the Mayor through an iwi chairs forum that has met twice between September and December this year. During these sessions, feedback on the Governing Body Guidance Document and the draft Mayoral Proposal was provided directly to the Mayor for his consideration.

48.     Engagement for mana whenua and mataawaka is outlined in the communications and engagement plan as part of another report on today’s agenda.

49.     Two of the three co-governance entities (Ngāti Whātua Ōrākei and Te Poari o Kaipātiki ki Kaipara) presented their strategic ambitions and financial needs at a Budget Committee workshop on 28 November 2023.

50.     Māori outcomes funding is included in the Mayoral Proposal as a result of recommendations received by the Mayor from the political working group for Māori outcomes. Subject to decision-making today, this will be included in the consultation material.

Ngā ritenga ā-pūtea

Financial implications

51.     The Long-term Plan 2024-2034 project is managed within existing budgets. The project has been budgeted at $1.3 million, including all costs associated with the communications and engagement plan on today’s agenda but excluding Audit NZ’s fee. For comparison the Long-term Plan 2021-2031 budget was $1.2 million.

52.     A provision for long-term plan audit fees has been included within the existing operating budget for 2023/2024.  A draft engagement letter from Audit New Zealand (including the scope of engagement and associated fees) has been considered by the Audit and Risk Committee which is responsible for making recommendations to the Mayor in relation to signing the final engagement letter.

 


 

 

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

53.     Annual budgets (including the 10-year Budget every third year) enable rates to be set for the relevant financial year. Not completing the Long-term Plan 2024-2034 in accordance with statutory requirements has the potential to impact on the council’s revenue, and its ability to continue to deliver the services and projects that Auckland needs.

54.     Another risk is compliance with the prescriptive requirements of the Local Government Act 2002. Legal Services will review the consultation material for legislative compliance alongside the audit of the material, prior to adoption by the Budget Committee in February 2024.

55.     The timeline for the Long-term Plan 2024-2034 has significant risk associated with it. A high level of project management and political engagement is required in order to meet the key milestones and adopt by the statutory deadline of 30 June 2024.

56.     Advice on the group climate risks and their relevance to this process has been provided through workshops and further detail is included as part of Attachment C to this report.

57.     As highlighted in the body of this report, potential changes to central government policy direction, particularly relating to water reform and transport funding, continues to create a lot of risk for this process. Council staff will continue to work with Audit New Zealand and the Department of Internal Affairs to ensure we are aligned with our approach to mitigate the associated risks.

58.     Depending on the detail included in any changes made to legislation on water reform, this could impact our ability to remain within the current scheduled consultation timeframe. As part of planning for the next phase, we will consider an approach to mitigate this risk, that might include slightly delaying consultation, if required. However, any delay to consultation will put additional pressure on the timeframes for the final phase of the Long-term Plan 2024-2034.

59.     Key risks to this process are regularly reported to the Audit and Risk Committee in line with their oversight role.

Ngā koringa ā-muri

Next steps

60.     Decisions made today will inform the preparation of the consultation document and supporting information for the Long-term Plan 2024-2034.

61.     The consultation document must include an opinion from the Auditor-General on whether the document gives effect to its purpose and on the quality of the information and underlying assumptions. The audit process is underway, and the consultation material review is planned to be completed ahead of the adoption of the consultation material in February 2024.

62.     The supporting information will include more detailed information (i.e., the information that is relied on by the content of the consultation document, is necessary for audit purposes, and provides the basis for the preparation of the long-term plan) and, following adoption by the Budget Committee, will be made readily available to the public in February-March 2024, alongside the consultation document.  

63.     Staff will also prepare material to support the communication and engagement campaign for consultation, including an information pack for elected members. 

 


 

 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Direction to Council Group from the Mayor and Councillors

 

b

LTP 2024-2034 Road Map

 

c

Climate Disclosures and Investments

 

      

Ngā kaihaina

Signatories

Author

Tamsyn Matchett - Programme Manager

Authorisers

Ross Tucker - General Manager, Financial Strategy and Planning

Peter Gudsell - Group Chief Financial Officer

 

 


Budget Committee

06 December 2023

 

Long-term Plan 2024-2034: regional topics for consultation - local board input (Covering report)

File No.: CP2023/19276

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To provide an overview of local board input on regional consultation content for the 10-year Budget 2024-2034.

Whakarāpopototanga matua

Executive summary

2.       This is a late covering report for the above item. The comprehensive agenda report was not available when the agenda went to print and will be provided prior to the 06 December 2023 Extraordinary Meeting of the Budget Committee meeting.

Ngā tūtohunga

Recommendation/s

The recommendations will be provided in the comprehensive agenda report.

 


Budget Committee

06 December 2023

 

Long-term Plan 2024-2034: Mayoral Proposal

File No.: CP2023/18611

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To present the Mayoral Proposal for the Long-term Plan 2024-2034 for the Budget Committee’s consideration and to recommend key items from the proposal for consultation.

Whakarāpopototanga matua

Executive summary

2.       A long-term plan (LTP) is not just a budget, it is the most significant opportunity for the Mayor and councillors to set the political direction for Auckland Council and focus the council organisation on change that will improve the daily lives of Aucklanders. 

3.       I asked for this process to be more politically-led than in the past. To date, there have been 38 budget workshops held over 14 weeks, including informal facilitated discussions at the outset.  Councillor-led working groups provided an opportunity for elected members to work on and put forward specific recommendations to inform the proposal. I have been impressed by the contributions from many councillors, who have worked together to come up with these ideas, which are woven into many aspects of this proposal.

4.       My preliminary draft Mayoral Proposal was shared with elected members on 27 November to enable local boards to provide feedback for the Budget Committee to consider in its decision-making.  The draft proposal was workshopped with Councillors on 29 November and after feedback I now attach my Mayoral Proposal for the Long-term Plan 2024-20234 (appended as Attachment A) together with the staff advice provided to support the Mayoral Proposal (appended as Attachment B).  

Budget Challenge

5.       The council faces big challenges. In previous years, decisions have been made to paper over funding gaps with debt and commit to new mega-projects while underfunding the renewal of core assets, like roads, pipes and community buildings. These decisions have consequences, including making our financial situation worse, which we need to deal with in this LTP.

6.       The Auckland floods and Cyclone Gabrielle demonstrated that Auckland must confront the long-term resilience risks posed by climate change, which include the increased risk of damage to council’s physical assets and Auckland homes, as well as risk to council’s access to capital and insurance. Other major environmental challenges have appeared, including the spread of exotic Caulerpa seaweed that threaten one of our greatest treasures, the Hauraki Gulf.

7.       Auckland continues to grow, driven by immigration because we are an attractive place to live. However, just because more people move here doesn‘t automatically mean we collect more rates. Our current methods for funding growth infrastructure for new housing, such as development contributions, consistently under-recover the full cost of these assets, leaving us to borrow and charge all ratepayers for these assets. As a result, the costs of growth fall disproportionately on local government, while the benefits fall disproportionately for central government. We need to focus our investment in priority areas and work with government to devise better ways to fund growth.


 

 

8.       We face persistent challenges in earning public confidence and trust, especially around our spending habits. Many of the things we do cost too much. We must put in place a financial strategy and controls that earn public confidence that our plan spends wisely on things that make a difference and does not waste money. This requires consistent financial restraint and an organisational commitment to doing things better, faster, and cheaper. 

9.       As a council we face several unavoidable bills in the next 10 years that this budget must provide for, and we have to also provide for unforeseen risks. Those big bills include City Rail Link (CRL), which in the third year of this plan will account for something like 10% of this year’s general rates, and the home buyouts and resilience work needed because of recent storms, which will be about 3% of general rates. We also have big unknowns around what is happening with the water reforms and the Regional Fuel Tax (which accounts for the equivalent of 7% of rates), which have big financial implications. We must maintain the financial ability to respond to risks.

10.     Even with continued financial restraint, rates increases have been baked-in by previous decisions and events. Under my proposal, the total operating costs of the council parent would have fallen if it was not for the increased costs of the storm. We also could have had 0% rates increase or even a decrease in year 3 of the LTP, but CRL alone will give us cost increases of $220 million (the equivalent of a 10% general rates increase this year).

11.     These challenges are not new and the same can be said about most if not all councils across New Zealand. But something has to change. We can’t keep going out to Aucklanders every year and saying the same thing for generations to come.

Objectives

12.     It’s time to get on with fixing Auckland.  My mayoral proposal has an overarching objective of strengthening Auckland’s long-term financial and physical resilience, while delivering on my main election promises:

·    Fix Auckland’s infrastructure

·    Stop wasting money

·    Getting Auckland moving

·    Make the most of our harbours and environment.

·    Take back control of Council organisations and Auckland’s future

13.     The initiatives set out in this proposal contribute to these goals, as well as the goals and aspirations of other elected members.

14.     As a council, we need to commit to strengthening our resilience, physically and financially, over the next three years – providing a solid foundation that will enable our region to make some real progress for the remainder of the long-term plan.

Key Initiatives of Mayoral Proposal

15.     My proposal delivers a long term plan to provide for the financial and physical resilience of Auckland through a combination of financial strategy changes, savings initiatives,  capital expenditure prioritisation, resilience projects, fairer funding of local boards and establishing the Auckland Future Fund and  aims to deliver lower rates increases over the first 3 years of the LTP than council was otherwise facing.

16.     I am also proposing that we consult on a broader set of options than just my proposal, including scenarios to spend less and do less (with lower rate increases) or, to spend more and do more (with higher rates increases). This allows us to get public feedback to inform our decisions, and will leave our options open, when we come to make final decisions for the LTP.


 

 

 

17.     The details of my proposal are as set out in Attachment A, and are summarised below:

a)      Despite the cost pressures facing council and ratepayers, set the average rates increases for residential ratepayers to 7.5%, 3.5%, 8% respectively in the first 3 years of the LTP then no more than 3.5% a year after that. This includes reinstating funding for the Natural Environment Targeted Rate to previously planned funding levels (with funds specifically targeted to dealing with Caulerpa), modifying the Water Quality Targeted Rate to fund a larger programme over a longer period of time, introducing more flexibility to the Climate Action Transport Targeted rate and doing away with the Long Term Differential Strategy.

b)      Fully fund council’s share of road renewals and other targeted transport spending to get Auckland moving with a total transport capital spend of $14 billion over 10 years.

c)      Make public transport faster, more reliable and easier to use through investing in the rapid transit network, making it easier to pay, introducing capped weekly public transport passes, network optimisation and dynamic lanes and reducing the cost and disruption of temporary traffic management.

d)      Strengthen council’s resilience by investing in the making Space for Water programme over 10 years, establishing the Auckland Future Fund to be capitalised with [our remining AIAL shares and any proceeds from an operating lease of the POAL land and Assets], investigating investment in renewable energy on under-utilised council assets and setting ambitious but realistic emissions reduction targets.

e)      Make the most of our harbours by returning Captain Cook and Marsden wharves to council and delivering a plan for a beautiful and well loved publicly owned waterfront.

f)       Change the Local Board Funding Policy to provide fairer funding for local boards, with a mixture of new and reallocated funding, better support and empower local boards to make decisions about assets and spending.

g)      Support the transition of the Community Asset portfolio with $4 billion of capital funding for the next 10 years, noting that this is not enough to fund all renewals, supported with $700 million of operational funding to transition away from asset-based services. I am proposing that part of this is used to fund $35 million over 3 years to address the deficit in indoor sports facilities in Auckland.

h)      Provide for an increase in Māori outcomes funding to $171 million over 10 years. 

i)       Work with central government to deliver the Auckland Deal including progressing time of use charging, bed night visitor levy, share of GST revenue on rates, funding for growth and balance sheet separation for Watercare.

j)       Staff reflect the Mayor and Budget Committee’s commitment to the diverse communities of Tamaki Makaurau Auckland, including Māori and those represented by my advisory panels in the consultation material as appropriate and provide further advice to support decision making.


 

 

Ngā tūtohunga

Recommendation/s

That the Budget Committee:

a)      agree that the draft budgets for public consultation on the Long-term Plan 2024-2034 be based on the operating and capital budgets set out in Mayoral Proposal.

b)      agree to consult on establishing the Auckland Future Fund (Fund) together with the transfer of all council’s remaining shares in Auckland International Airport Limited (AIAL) into the Fund, including amending the AIAL shareholding policy to enable the subsequent sale of any or all the shares by the fund manager to achieve the specified objectives of the Fund, including the following options:

i)       ring fence an appropriate amount of the Fund’s assets for the purposes of providing self-insurance; and

ii)       including the proceeds of any operating lease of the Port of Auckland’s operations if council proceeds with that option.

c)       agree to consult on the following options for release of Port of Auckland land and transfer of wharves back to council:

i)       No change;

ii)       Release of Captain Cook and Marsden wharves from port operations and transfer to council within 2 years.

d)      agree to consult on the following options for port operations:

i)       Enhanced status quo – Port of Auckland Limited continues to own and operate the port land and operations, implementing their turnaround plan to deliver more dividends to council; or

ii)       Lease Port operations - council retains underlying ownership of Port land and assets and enters into a lease of the Port land and assets to an operating partner for a period of approximately 35 years for an upfront capital payment, subject to the conditions specified in the Mayoral proposal and including an option of returning Bledisloe Terminal to council within 15 years.

e)      agree to consult on the following rating policy options;

i)       Natural Environment Targeted Rate - resume this targeted rate at the previously planned level to raise around $32.6million in 2024/2025 including $200,000 for dealing with Caulerpa;

ii)       Water Quality Targeted Rate - fund the expanded full programme of water quality stormwater projects of $779million but set the targeted rate so that it covers only the annual programme operating and interest costs in each year;

iii)      Climate Action Transport Targeted Rate – broaden the description of bus services funded by this rate to provide flexibility to deliver the best emissions reductions benefits;

iv)      Long Term Differential Strategy – discontinue this policy and hold the business differential at the current level of 31 per cent;

v)      Extend the above three targeted rates to 2033/2034 and set the business differential for these rates at 31 per cent.

f)       agree to consult on the following financial strategy changes which align with the draft budgets set out in the Mayoral Proposal:

i)       Reduce the debt to revenue limit to 270% with a target of being below 250%;

ii)       Introduce a debt servicing cost to revenue limit of 15%;

iii)      Maintain the path to fully funding depreciation by 2027/2028;

iv)      Average rates increase limit of 1.5% above inflation, noting that this limit will need to be exceeded in the short term;

v)      Introduce group budget responsibility and transparency rules as set out in the Mayoral Proposal;

vi)      Asset sales target of $300 million over 10 years;

vii)     Maintain Watercare debt to revenue cap at 340%;

viii)    Work with the government to deliver the Auckland Deal including progressing time of use charging, bed night visitor levy, sharing of GST revenue on rates, funding for council spending on growth, and balance sheet separation for Watercare.

g)      agree to consult on changes to the Local Board Funding policy to include a mixture of new and reallocated funding as set out in the Mayoral Proposal to bring most local boards to within 5% of funding equity within three years.

h)      agree to consult on the following options for North Harbour stadium:

i)       Maintain the status quo and invest in essential renewals of $33 million over 10 years;

ii)       Redevelop the stadium precinct to better deliver for the needs of the North Shore community, funded through reallocation of the renewal funding for the stadium, the sale of some stadium precinct land while retaining the existing community playing fields and any other external funding available.

i)        note that the draft budget for consultation as set out in the Mayoral Proposal will require overall average rates increases for residential ratepayers of 7.5%, 3.5%, and 8% respectively in the first three years and then no more than 3.5% a year after that.

j)        agree to consult on options to:

i)        Pay more, get more – with average rates increases for residential ratepayers of up to 14% in year one, 10% in years two and three, and 5% thereafter; and

ii)       Pay less, get less – with average rates increases for residential ratepayers of around 5.5% in year one, 3.5% in years two and three; and no more than 1% above CPI inflation thereafter

k)       note that further information about the options agreed for consultation, including potential service level impacts, will be included in the consultation material for the LTP.

l)        note that further external advice has been sought on the Auckland Future Fund and options for the Port of Auckland to inform the consultation material for the LTP.

m)     note that staff reflect the Mayor and Budget Committee’s commitment to the diverse communities of Tamaki Makaurau Auckland, including Māori and those represented by my advisory panels in the consultation material as appropriate and provide further advice to support decision making.

 


 

 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Mayoral Proposal

 

b

Staff advice to support Mayoral Proposal

 

     

Ngā kaihaina

Signatories

Author

Mayor Wayne Brown

 

 


Budget Committee

06 December 2023

 

Long-term Plan 2024-2034: Other Rates and Fees Matters

File No.: CP2023/18006

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To recommend changes to rating policy and fees for consultation as part of the Long-term Plan 2024-2034.

Whakarāpopototanga matua

Executive summary

2.       The recommendations in this report bring together all the rating issues and fees material proposed for consultation as part of the Long-term Plan 2024-2034, not covered elsewhere on this agenda.

Waste management targeted rates

3.       In June 2022 the council amended its Waste Minimisation and Management Plan to provide for refuse services across the region to be funded from a targeted rate. The rates funded service will be rolled out to North Shore, Waitākere and Papakura in 2024/2025 and Franklin and Rodney in 2025/2026 (Auckland and Manukau already have a rates funded service).

4.       Officers recommend that the refuse targeted rate be extended to those areas where the service is being introduced. Where the service commences part way through a rating year the targeted rate will be charged on a pro rata basis, reflecting the approximate number of months the service is available in each area.

5.       The food scraps collection service will continue to be rolled out to all residential and lifestyle properties across mainland urban Auckland in 2023/2024. From 2024/2025 all properties with access to this service will pay a uniform full year food scraps targeted rate.

6.       The total rates for standard waste management services are expected to rise from $406 in 2023/2024 to $423 in 2024/2025. The costs reflect our current forecasts of waste volumes, the impact of the waste levy increase imposed by the government, and the inflation factors included in our contracts with suppliers for labour and fuel costs. It also includes a $7 increase in the standard recycling charge over and above cost inflation ($5), reflecting the deteriorating international market for recyclable materials.

7.       Officers recommend that the council consult on the proposed waste management targeted rates set out in the report.

8.       Since 2016 schools have not been charged for recycling in order to encourage waste reduction. Officers recommend that the council consult on charging schools for recycling services as there is no evidence that the free service has reduced waste and that the school funders, government for public schools and fee payers for private schools, should meet this cost.

Changes to Electricity Network Resilience Targeted Rate

9.       The Electricity Network Resilience Targeted Rate (ENRTR) funds enhanced maintenance of council trees that present a risk to Vector’s electricity lines network. Changes are proposed to the ENRTR to enable engineering solutions to protect trees that have significant public interest (as an alternative to pruning) and increasing the ENRTR by inflation to keep up with costs. Officers recommend that the council consult on these proposed changes to the ENRTR.

 


 

 

Changes to Climate Action Transport Targeted Rate

10.     The Climate Action Transport Targeted Rate (CATTR) funds additional investment in electric ferries, additional bus services, active network infrastructure, and urban ngahere. The proposed investment in bus services to be funded by the CATTR from 2024/2025 will change as a result of changes in the Regional Public Transport Plan (RPTP).

11.     As part of dealing with ongoing changes to the CATTR bus programme, staff recommend amending the description of the bus programme to reduce the need to reconsult each year via the annual budgeting process for minor changes to the bus programme. Consultation on delivery of bus services is undertaken in the RPTP. Any proposed changes to the bus programme would continue to be reported to the CATTR Governance and Oversight group, and any material changes to the programme scope would require that group’s approval. Any changes proposed to the settings of the CATTR would still require consultation through the annual budgeting process.

Rodney drainage districts targeted rates

12.     The Rodney Drainage Districts Targeted Rate (RDDTR) funds the capital and operating costs of maintaining the public drainage assets in the drainage districts of Te Arai and Okahukura in northern Rodney. Following feedback from ratepayers, officers have reviewed the nature of the benefit received by properties, and the boundaries of the areas benefiting from the service. Officers recommend that the aspects of the rate be amended to reflect the updated analysis of the nature and scale of benefits properties in the area receive from the service. Officers recommend that the council consult on the amendments to the RDDTR as set out in this report.

Onehunga business improvement district expansion

13.     The Onehunga Business Association has proposed an expansion in the area covered by the Onehunga Business Improvement District Targeted Rate. Officers recommend that the council consult on the proposed expansion provided it is supported by the Maungakiekie-Tāmaki Local Board via a resolution prior to this meeting.

Waitākere rural sewerage targeted rate

14.     The Waitākere Rural Sewerage Targeted Rate (WRSTR) funds the cost of the council’s three yearly pump out of primary onsite wastewater systems (such as septic tanks) in the Waitākere Ranges Local Board area. Officers recommend that the council consult on an increase in the WRSTR from $296.75 to $336.80 (per year) for the next three-yearly cycle to maintain cost recovery. Not increasing the targeted rate would result in an annual subsidy of around $117,000 from the general rates.

Fees and charges

15.     Most fees and charges will increase in line with the council’s cost inflation where necessary to maintain cost recovery. A three-year cycle of more detailed fee reviews was introduced as part of the Annual Budget 2022/2023.

16.     In year three of the fee review cycle, officers reviewed a number of regulatory fees and charges to ensure that the cost of processing is recovered from customers using services or to adjust deposits to reflect actual costs more accurately.  Officers recommend that the council consult on the proposed regulatory fee changes including:

·    fees to recover the cost of processing new requirements under the Building (Dam Safety) Regulations 2022 which come into effect in May 2024

·    some building and resource consenting fees or deposit levels

·    increases in film permitting fees to maintain the original cost recovery level.

 

 

 

17.     In 2023/2024 the first phase of the review of fees and charges for the Active Communities service (pools and leisure facilities) was undertaken. Following consultation, the council adopted the proposed changes to standardise baseline fees for bookable spaces in council managed pool and leisure facilities. The second stage of the review has focused on achieving an appropriate level of cost recovery and discounts for eligible groups in both council managed and contracted pool and leisure facilities. Officers recommend that the council consult on the adjustment proposed to fees for services from both council managed and contracted pool and leisure facilities.

18.     The review of fees and charges for venue hire and bookable spaces (community halls, community and art centres, bookable library spaces) has been split into two phases due to the number and complexity of the fees. The existing pricing frameworks currently in place for bookable spaces contain variations and inconsistencies inherited from legacy councils.

19.     Local boards could choose to increase or decrease proposed fees and charges for local activities in their area. This may result in extra funding for the local board if fees are increased or a top-up may be required from the local board funding if fees are reduced from the proposal.

20.     In the first phase fees for use of venue hire and bookable spaces have been reviewed with a focus on harmonising fees.  The second stage, planned for 2025/2026 will focus on determining the appropriate level of cost recovery. Officers recommend that the council consult on the proposed changes to fees for the use of bookable spaces.

21.     The cost of maintaining animal management service levels has increased by $5.9 million per year to manage a rapidly growing dog population and to maintain staff safety. The services provide benefits to all Aucklanders and aren’t driven by registered dog owners or those who pay fees for the use of council’s animal management services. Officers therefore recommend that the additional costs be funded by general rates rather than a 30 per cent increase in animal management fees which would otherwise be required. This will move the cost recovery proportion from the 60/40 fees and rates split on which current fees are set to 50/50. This will add 0.26 per cent to the general rates increase. Animal management fees will be increased in line with council cost inflation of 6 per cent for 2024/2025. A full review of animal management fees is recommended for the 2025/2026 year.

Ngā tūtohunga

Recommendation/s

That the Budget Committee:

a)      whakaae / agree to include in the draft funding impact statement to support consultation on the Long-term Plan 2024-2034 the proposed increases to the waste management targeted rate charges next year as specified in this report, to ensure cost recovery for the relevant services

b)      whakaae / agree to consult as part of the Long-term Plan 2024-2034 on:

i)       proceeding with the planned extension of the refuse targeted rate to the former districts of North Shore City, Waitākere City and Papakura District, from 1 July 2024, on a pro rata basis reflecting the approximate number of months the service is scheduled to be available to the property during 2024/2025, to be applied to

A)      all residential and lifestyle Separately Used and Inhabited Parts (SUIPs) to which the service is made available

B)      all other SUIPs to which a council refuse bin is assigned as per council records

 


 

 

 

ii)       applying the Recycling Targeted Rate to all schools as set out in this report

iii)      other waste management targeted rate charges for 2024/2025 as set out in this report to maintain cost recovery

iv)      a broader description of the bus programme funded by the Climate Action Targeted rate to reduce the need to reconsult each year via the annual budgeting process for minor changes to the bus programme noting that consultation on delivery of bus services is undertaken in the Regional Public Transport Plan (RPTP)

v)      changes to the Electricity Network Resilience Targeted Rate as set out in this report, to allow for engineering solutions to protect trees that have significant public interest and to cover cost increases

vi)      changes to the Rodney Drainage District Targeted Rate as set out in this report

vii)     updated land class boundaries for the Rodney Drainage District Targeted Rate for Okahukura Drainage District and Te Arai Drainage District, as specified in Attachment A of this report

viii)    the expansion of the Onehunga Business Improvement District (BID), provided it is supported by the Maungakiekie-Tāmaki Local Board via a resolution prior to this meeting

ix)      increasing the Waitākere Rural Sewerage Targeted Rate from $296.75 to $336.80 (per year) for 2024/2025, 2025/2026 and 2026/2027 to maintain cost recovery

c)       whakaae / agree to consult as part of the Long-term Plan 2024-2034 on changes to fees and charges as set out in this report and in Attachment C

d)      tono / direct staff to carry out as part of the Annual Budget 2025/2026 a full review of animal management fees to ensure that the funding mix remains appropriate for the services provided.

Horopaki

Context

22.     The council is required to consult on changes to its rating policy and certain changes to regulatory fees and charges, including, for example, where fees are prescribed under the Resource Management Act 1991. The council can also choose to consult where it considers it appropriate to do so– for example, where the proposal is considered to have a high degree of significance under the council’s Significance and Engagement Policy.

23.     The council is required to consult on changes to the Revenue and Financing Policy when proposing changes to sources of funding where the policy doesn’t already provide for that source of funding to be used for the particular activity.

Tātaritanga me ngā tohutohu

Analysis and advice

24.     The following sections set out the key issues to be considered when making a decision for each of the proposed changes to council’s rating policies and fees. More detailed analysis of each issue is set out in the attachments to this report. Each attachment is presented in the format that will be used for the supporting information for consultation if the council decides to consult on the issue. The material will be updated to reflect the decisions the council makes on the issues for consultation.

 


 

 

 

Waste management targeted rates

Region wide rates funded refuse

25.     In June 2022 the Governing Body agreed to amend the Auckland Waste Management and Minimisation Plan 2018 to move to a regionwide rates-funded refuse collection service with a choice of three bin sizes (80 litre, 120 litre and 240 litre). At present refuse services are funded by a refuse targeted rate in the former Auckland City and Manukau City council areas and by pay as you throw (PAYT) bin tags in the former North Shore, Waitākere, Papakura, and Franklin council areas. Refuse services in Rodney are presently delivered by a private provider. The rates funded service will begin rolling out to North Shore, Waitākere and Papakura in 2024/2025, and Franklin and Rodney in 2025/2026.

26.     Officers recommend that the refuse targeted rate be extended to those areas where the service is being introduced. Where the service commences part way through the 2024/2025, and 2025/2026 rating years the targeted rate will be charged on a pro-rata basis, reflecting the approximate number of months the service is available in each area.

27.     The council adopted a policy in 2022 allowing properties with a land use other than residential and lifestyle to opt out of council’s refuse and recycling services. Some of these properties are currently using the council’s PAYT bins. Officers recommend applying the refuse targeted rate to these properties from 1 July 2024 based on information currently held by the council’s waste team as to what bins each property has. If an error is identified subsequent to the targeted rate being applied an amended rates notice will be generated and sent to the ratepayer.

28.     There are currently two bin sizes for the standard refuse service in the North Shore and Waitākere PAYT areas, 140 litre and 120 litre. The PAYT bin tag prices for the two bin sizes are the same. The 140 litre bins were inherited from legacy councils. Most of these bins remain in good condition and are kept in use to reduce bin replacement cost. The 140 litre bins are gradually being phased out. When households request a bin replacement, they will be replaced by the standard 120 litre bins. 120 litre bins are the standard size bin in all rates funded areas. Officers recommend applying the same targeted rate to both bin sizes because:

·    the cost of servicing the two bin sizes is not expected to be substantially different

·    council chose to keep the 140 litre bins to save costs

·    it keeps the targeted rate structure simple

·    it is likely that the majority of the households in the PAYT areas do not need the additional 20 litre capacity and would choose to swap bins if an additional charge applied, creating extra workload for the council.

29.     The current best estimate of the draft schedule of the rollout and targeted rate charges is set out in the table below. This may change as officers work through the details of the delivery programme with contractors and suppliers, including issues regarding resourcing, provision of bins, and communication strategy. While we will endeavour to ensure the service is provided to properties as scheduled, the start dates of the service and therefore the number of months the service will be available in 2024/2025 for various property groups as specified in the table may change. Officers will revisit the timeframe and targeted rate charges in May 2024 before recommending the final amount of the targeted rate for adoption in June 2024. Officers recommend including the following information in the 10-year budget consultation to illustrate the proposed pro-rata refuse charges.

 

 

1.       

1.       

Area

Service

Indicative targeted rate 2024/2025
(incl. GST) $

Indicative start date and number of months service will be available

Former NSCC and WCC

Standard refuse (120L/140L bin) charge

$104.82

December 2024

7 months

Small refuse (80L bin)

$87.10

Large refuse (240L bin)

$173.97

Former PDC

Standard refuse (120L/140L bin) charge

$29.95

May 2025

2 months

 

Small refuse (80L bin)

$24.89

Large refuse (240L bin)

$49.71

 

Waste management targeted rates for the 2024/2025 year

30.     The proposed waste management targeted rates for 2024/2025 are set out in the table below. The total rates for standard waste management services are expected to rise from $406 in 2023/2024 to $423 in 2024/2025. The costs reflect our current forecasts of waste volumes, the impact of waste levy increase imposed by the government, and the inflation factors included in our contracts with suppliers for labour and fuel costs. It also includes a $7 increase in the standard recycling charge over and above cost inflation ($5), reflecting the deteriorating international market for recyclable materials.

31.     The food scraps collection service will continue to be rolled out to all residential and lifestyle properties across mainland urban Auckland in 2023/2024. From 2024/2025 onward all properties with access to this service will pay a uniform full year food scraps targeted rate. For 2023/2024 part of the cost for the food scraps service is met with a subsidy from the waste levy. Economies of scale following completion of the regional rollout are expected to deliver cost savings. This will allow 100 per cent of the food scraps service cost to be funded from the targeted rate from 2024/2025. A subsidy from the waste levy revenue will no longer be required.

32.     Officers recommend that the council consult on the proposed waste management targeted rates set out in the table below. Note that the refuse rates will be applied on a pro-rata basis where the rates-funded refuse service is not available for the full year. See the preceding section for details.

Service

Area

Targeted rate 2023/2024

(incl. GST) $

Proposed targeted rate 2024/2025
(incl. GST) $

Minimum base service

All areas

$59.39

$58.43

Standard recycling or additional recycling

All areas

$96.18

$108.16

Standard refuse (120L/140L bin) charge

Former ACC

and MCC

$172.91

$179.69

Small refuse (80L bin)

$143.71

$149.32

Large refuse (240L bin)

$287.03

$298.24

Food scraps full year charge

All areas

$77.20

$76.93

 

Funding school recycling services

33.     In 2016 the council provided for all schools to receive free recycling services. Free recycling was provided to encourage recycling and waste reduction. The foregone revenue is around $250,000. This cost is met from the recycling targeted rate paid by other ratepayers.

 

 

34.     Schools are generally non-rateable and do not pay council’s general rates or other targeted rates. Schools only pay for rates to fund waste services delivered to their properties. All schools who receive the refuse service pay the refuse targeted rate or refuse bag charges depending on their location in the region.

35.     The council has no evidence that the provision of a free service has led to increased recycling by schools. Recycling rates will be a very small part of schools’ costs. Public schools, 91 per cent of schools in Auckland, have their costs met by the Ministry of Education. Private schools, the remaining 9 per cent, are funded by fees.

36.     Officers consider that as there is no evidence that this policy has achieved its objective, ratepayers should not be bearing a cost that should be met by the schools, mainly the government. Officers recommend that the council consult as part of the draft 10-year Budget 2024-2034 on applying the Recycling Targeted Rate to all schools as set out below.

37.     There are several bin sizes that are issued to schools as shown below:

 

240L

360L

660L

Number of bins

1,627

65

398

 

38.     Officers recommend applying the following targeted rate amounts to school recycling bins from 1 July 2024.

 

240L

360L

660L

Differential

1.0

1.5

2.5

Proposed targeted rate for 2024/2025 (incl. GST)

$108.16

$162.24

$270.40

 

Rodney drainage district targeted rates

Background

39.     In 2021 the council introduced a targeted rate to fund the maintenance of council-owned drainage assets in the Okahukura and Te Arai drainage districts. The amount of the targeted rate a property pays is assessed based on the land area of the property, differentiated by the location of the land in relation to the drainage assets. Land that is in a flood plain and drains into the public drainage assets (Class A land) is charged twice as much as land that is not in a flood plain but drains into the flood plain served by the public drainage assets (Class B land). Land that is not in a flood plain and does not drain into the public drainage assets (Class C land) does not pay the targeted rate.

Review of catchment area and distribution of benefits

40.     While engaging with the local communities on the drainage programmes and the associated targeted rates, officers have received feedback in favour of a review of the targeted rate boundaries and in particular, the benefit received by Class C land.


 

 

41.     Following this feedback, officers have undertaken a review of the drainage district targeted rates. The purpose of the review is to ensure rates were being fairly applied in terms of benefit received from the drainage assets and the extent to which the land is a driver of the costs. The review led to the following findings:

·    the identifiable boundaries of flood plains and catchments have moved due to underlying hydrological changes in the districts and the availability of more accurate data

·    Class C land receives an indirect benefit from the presence of the public drainage assets. While Class C land does not drain into the catchments served by the council owned drainage assets, its access to roads and local amenities is protected when the drainage district is not flooded.

42.     The drainage districts targeted rates are assessed based on land area and land class, to reflect benefit received and cost caused. Land classes, in turn, are defined by flood plain and catchment boundaries. The movements of those hydrological boundaries identified in the review mean that it is likely the existing land class boundaries specified for rating purposes no longer accurately reflect benefit and cost. Officers therefore consider it appropriate to amend the current land class boundaries based on updated hydrological information, to ensure targeted rate charges continue to be set fairly.

43.     Officers also propose applying a targeted rate to Class C land to reflect the benefit noted above. Given the indirect nature of the benefit received by Class C, officers propose applying a 0.1 differential to the targeted rate assessed for Class C land relative to that for Class A land. The differential for Class B land will be maintained at 0.5.

44.     There are 17 properties in the Te Arai district which are on unit titles and do not have land area information on the council Rating Information Database (RID). Under the proposal, the drainage district targeted rate assessed for these properties will be zero. The land parcel, with a total land area of 35,260 square metres, is situated entirely on Class C land. If treated as one single property, the land parcel would attract $7.50 of drainage district targeted rate proposed for next year. This equates to 44 cents per rating unit if the amount was equally split between all 17 rating units associated with the land parcel. While this technical anomaly would result in a small amount of subsidy for the unit title properties by other properties in the drainage district, officers consider that the impact is minor and no change to the proposal is needed to address this. Should any future changes result in material increase in the potential targeted rate liability of these properties, officers would revisit the exemption and report back to the council as appropriate.

45.     An incorporated society made up of local community representatives has been established for each drainage district to oversee the maintenance of drainage assets in the respective district. Information on actual spend will be recorded and used to inform the targeted rate setting for the 2025/2026 financial year. For 2024/2025 the targeted rate revenue requirement will be set by applying the forecast rate of council inflation to the current targeted rate revenue. The current forecast rate of inflation for stormwater activities is 4.4 per cent for 2024/2025.

46.     The tables below show the proposed targeted rate charges for 2024/2025 and the distribution of targeted rates between land classes under the proposal.

 


 

 

Okahukura

 

Targeted rate per square metre of land (proposed)

Share of targeted rate amount 2024/2025 (proposed)

Rateable land area

 

$ (incl. GST)

Amount $

Percentage

Hectare

Percentage

Class A

0.00299673

18,242

51%

700

24%

Class B

0.00149836

14,680

41%

1,127

39%

Class C

0.00029967

2,825

8%

1,084

37%

Total

 

35,747

100%

2,911

100%

 

Te Arai

 

Targeted rate per square metre of land (proposed)

Share of targeted rate amount 2024/2025 (proposed)

Rateable land area

 

$ (incl. GST)

Amount $

Percentage

Hectare

Percentage

Class A

0.00212443

14,725

44%

797

24%

Class B

0.00106222

17,881

53%

1,936

57%

Class C

0.00021244

1,191

4%

644

19%

Total

 

33,796

100%

3,377

100%

 

47.     The proposed changes will have minor rates impact on most properties in the drainage districts. The table below shows the estimated number of properties (between the two districts) that would face targeted rate changes under the proposal. Note that these numbers may change due to movements in underlying property data (e.g., subdivisions) or amendment to inflation assumptions. The final targeted rates will be set by the council in June 2024 following consideration of consultation feedback and updating of property and cost inflation information.

Estimated number of properties in Okahukura and Te Arai districts (combined) by change band (dollar and percentage)

 

 

Targeted rate change in dollar terms

 

 

< $-200

$200 to $50

$-50 to $0

$0 to $50

$50 to $200

$200 to $500

$500 to $1000

> $1000

Total

Targeted rate change as a percentage of total rates bill

< 0%

4

7

186

0

0

0

0

0

197

0% to 3%

0

0

0

160

19

2

0

0

181

3% to 5%

0

0

0

0

7

3

1

0

11

5% to 10%

0

0

0

0

0

1

0

0

1

> 10%

0

0

0

0

0

0

0

0

0

Total

4

7

186

160

26

6

1

0

390

 

 


 

 

 

48.     Officers recommend consulting as part of the 10-year Budget 2024-2034 on the proposed changes, including a new set of Rodney drainage districts targeted rates based on updated hydrological information and a new rating differential of 0.1 for Class C land. The proposed changes would ensure targeted rates continue to align with benefit received and/or costs imposed. Only one property (out of 390) would have a targeted rate increase of more than 5 per cent of their current rates bill.

Changes to Electricity Network Resilience Targeted Rate

49.     Officers recommend that council consult on the following changes to the Electricity Network Resilience Targeted Rate (ENRTR):

·    including engineering solutions as an alternative for trees where it is the most appropriate approach to protect the tree and protect the lines network (as an alternative to pruning)

·    ongoing annual increases by inflation to maintain services levels as costs increase.

50.     In 2021/2022 the council introduced the ENRTR to fund the operating costs of enhanced maintenance of council trees that present a risk to Vector’s electricity lines network. This increased tree maintenance is to allow for an enhanced, risk-based service to more effectively manage risk to Vector’s powerlines from trees council owns.

51.     There are some council-owned trees where the most appropriate solution to protect the tree and reduce interference with power lines is to provide an engineering solution (such as a redirection of the power line around the tree). These alternatives may require additional capital work to be undertaken on the electricity lines network. Any work on the electricity lines network will need to be undertaken by agreed contractors to acceptable standards.

52.     The council is also facing increasing costs for the provision of this enhanced service due to inflation. Currently the ENRTR is set at a fixed level. It is necessary to increase the ENRTR in line with the inflation increase. The alternative is that over time the level of additional service provided will decrease and result in reduced outcomes than would otherwise be the case.

Changes to Climate Action Transport Targeted Rate description

53.     Officers recommend broadening the description of the bus programme delivered by the Climate Action Transport Targeted Rate (CATTR). This will reduce the need to reconsult each year via the annual budgeting process for minor changes to the bus programme.

54.     In 2022/2023 the council introduced the CATTR to build on the response to addressing climate change. The CATTR generates $574 million over the period 2022 to 2032 to fund climate action. The CATTR funds additional investment in buses, ferries, walking, cycling and the urban ngahere (forest). The $574 million raised from the targeted rate leverages a $1.045 billion investment package in climate action as the proposed investments also unlock central government co-funding and additional fare revenue. Consultation on the CATTR included detailed information on the bus services that the CATTR would fund.

55.     In 2023/2024, in response to changes in Auckland Transport operational budget, the council decided to partially reprioritise $10.5 million of additional bus service expenditure planned to be funded by the CATTR. This did not impact on the level of the rate, or the plans for expenditure on the other activities it funds. It also ensured that the council could continue to deliver the best service and climate outcomes.

 


 

56.     Listing of all CATTR funded improvements to bus services in the Annual Budget 2022/2023 consultation materials has provided a tight scope of proposed bus service investment (see Attachment B: Current description of CATTR funded improvements to bus services). This has led to a situation where re-consultation on changes to the bus programme funded by the CATTR is generally required each year. The proposed new approach summarises the proposed bus improvements by CATTR targets and investment levels for different parts of the region, rather than the previous approach of listing all specific proposed route changes.

57.     The details of bus service investments are consulted on via the Regional Public Transport Plan (RPTP). This is the appropriate place for bus route level detail to be held given this is the statutory document that outlines Auckland’s plans for bus service changes. The RPTP is currently being reviewed and this may impact the delivery of planned bus services (either the services themselves or the timing of delivery).

58.     A summary of the current and proposed CATTR funded bus improvements are shown in the tables below.

   Summary of current CATTR funded bus improvements

 

New FTN[1]

Other routes being improved

Population within walking distance of new improved service (2018 census)

Number of zero emission busses to be added

Percentage of package

Central

3

17

260,000

6

17%

North

1

18

158,000

12

18%

South & East

5

31

366,000

45

45%

West

3

14

190,000

19

20%

TOTAL

12

80

974,000

82

 

 

    Summary of proposed CATTR funded bus improvements

 

New FTN*

Other routes being improved

Population within walking distance of new improved service (2018 census)

Number of zero emission busses to be added

Percentage of package

Central

5

20

327,000

18

18%

North

2

20

140,000

11

19%

South & East

4

27

319,000

39

41%

West

3

13

183,000

13

22%

TOTAL

14

80

969,000

81

 

 

59.     Broadening the description of the CATTR funded bus service programme from 2024/2025 will:

·    provide ongoing flexibility to determine specific CATTR funded bus service investment with reference to the RPTP process, and reduces the need to reconsult each year when minor changes are made to the CATTR funded bus programme

·    maintain the general region wide nature of the benefits from the expenditure on the overall CATTR climate action programme and the distribution of the rates burden will not change

·    ensure that the council can continue to deliver the climate and service outcomes for which the CATTR was established.

 

 

60.     Decisions required on the CATTR funded bus services would continue to be made by the CATTR Governance and Oversight group. Any material changes to the scope of the programme would require approval of the CATTR Governance and Oversight group.

61.     The alternative option is to continue with the scope of the proposed bus service investment as laid out in the consultation materials for the Annual Budget 2022/2023. This would result in consultation taking place each year via the annual budgeting process as the changes to bus services occur through the RPTP process. Another option is that the council could retain the original CATTR proposal, where operationally feasible, and fund RPTP services through further general rates increase. This would lead to an underspend of CATTR funding for bus services and create a surplus in reserve to be used in future years.

62.     The CATTR programme will run until 2031/2032. There are currently no plans to extend the CATTR programme beyond this date. Once the CATTR programme is completed there will be ongoing operating costs of around $43 million per annum which will need to be maintained into the future to ensure the outcomes achieved by the programme continue to be delivered. Accordingly, officers recommend that the ongoing operating expenditure be met from general rates from 2032/2033 onwards in line with most other rates funded council expenditure.

63.     The original scope of the planned bus services can be found in Attachment B: Current scope of CATTR funded bus services.

Business Improvement District Programme

64.     The Onehunga Business Association is proposing an expansion of the Onehunga Business Improvement District (BID).

65.     The Maungakiekie-Tāmaki Local Board will decide at its business meeting on 28 November 2023 whether to support the expansion of the Onehunga BID. Officers will advise on the local board’s decision at the 6 December Governing Body meeting. Officers recommend including the proposed expansion in the 10-year budget consultation if it receives local board support.

66.     The council’s BID Policy requires a ballot to be held of all business ratepayers and business occupiers / tenants in the proposed BID programme area. In order to proceed with the expansion of a BID the ballot must achieve a threshold of at least 25 per cent of the total voting forms returned and of those, over 51 per cent must be in support of the proposal.

67.     A ballot will be held from 26 February to 26 March 2024 on the proposed expansion.

Waitākere Rural Sewerage Targeted Rate

68.     The Waitākere Rural Sewerage Targeted Rate (WRSTR) funds the cost of the council’s three yearly pump out of primary onsite wastewater systems, septic tanks, in the Waitākere Ranges Local Board area. Officers have reviewed the cost of delivering the service and recommend that the council consult on an increase in the WRSTR from $296.75 to $336.80 (both inclusive of GST) for the next three-yearly cycle to maintain cost recovery. This is a 13 per cent increase from the current amount which was set three years ago. The increase reflects inflation of costs mainly in fuel and labour over the last three years. Not increasing the targeted rate would result in an annual subsidy of around $117,000 from the general rates.

Franklin Local Board Paths Targeted Rate

69.     The Franklin Local Board has recommended consultation on the introduction of a Franklin Local Board Paths Targeted Rate to fund additional investment in paths (walking and cycling). This will be considered on a separate report on this agenda.


 

 

Proposed fees and charges changes

70.     Fees and charges make up 30 per cent of group operating revenue in the Funding Impact Statement in the Annual Budget 2023/2024. A three-year cycle of fee reviews was introduced in the Annual Budget 2022/2023. The reviews:

·    address service areas where legacy council fees have not yet been harmonised

·    ensure that the cost recovery decisions previously made by the council continue to be met

·    reassess cost recovery levels where there have been material changes to the nature or cost of services since the original cost recovery decisions were made.

71.     Most fees (including regulatory fees as provided for in the Revenue and Financing Policy) not subject to review in a particular year are increased in line with the council’s projected cost inflation where necessary to maintain cost recovery.

72.     Preliminary work on revenue budgets to inform consultation on the Long-term Plan 2024-2034 has been based on estimated inflation costs expected to be faced by each service area.  However, given the current level of economic uncertainty inflation forecasts could be different when decisions on fee levels are required in May 2024. Fees may need to be adjusted taking into account updated inflation forecasts to maintain cost recovery.

73.     Each of the proposed fee changes resulting from the review (not including those changes resulting only from inflationary adjustments) are discussed below and are set out in detail in Attachment C: Fees and charges changes proposal.

74.     Local boards could choose to increase or decrease proposed fees and charges for local activities in their area. This may result in extra funding for the local board if fees are increased or a top-up may be required from the local board funding if fees are reduced from the proposal.

75.     The alternative to the fee changes proposed is to retain existing fee levels and fund the additional costs from general rates. Officers recommend adjusting fees and charges to reflect the level of cost recovery for the relevant activities, as agreed by the council in previous decisions and set out in the Revenue and Financing Policy.

Regulatory fees

Consenting fees

76.     Requirements under the Building (Dam Safety) Regulations 2022 will come into force in May 2024. Owners of dams that meet the height and volume requirements will need to confirm the potential risk their dam poses, put in place safety plans, and undertake regular dam inspections. New building consent fees are proposed to recover the cost of processing these new regulations which are outlined in Attachment C: Fees and charges changes proposal.

77.     To better reflect the final fee for resource and building consent activities, we are proposing to increase a number of consenting fees and deposit levels. 

78.     These proposed amendments are discussed in more detail in Attachment C: Fees and charges changes proposal.

Film permit fees

79.     Film permitting on council-controlled public places is administered by Screen Auckland, a unit of Tātaki Auckland Unlimited (TAU) under the Public Trading, Events and Filming Bylaw 2022 and in accordance with the Auckland Film Protocol adopted in 2019. The protocol and bylaw set out a baseline code of practice for the film industry to ensure that local residents, businesses, and the environment are not negatively impacted by filming on council-controlled public places. Film producers can also carry out their activities with the certainty provided by the film permit process.

 

 

80.     Full cost recovery is not considered to be appropriate due to the nature of filming and the wider economic and cultural benefits that filming brings to Auckland. It would also mean that Auckland would appear a more expensive filming destination than other cities.  Staff are proposing to increase the fee to adjust for cumulative inflation increases since 2015 when standardised fees were introduced.  The fees will be adjusted for inflation annually in the future. This proposal will increase cost recovery while maintaining the ability to compete with other regions for film activity.

81.     In 2022, 1040 permit applications were processed, 14.5 per cent more than in the previous year. An increase in revenue of around $209k per year is estimated. Due to the Hollywood writers and actors strikes, statistics for 2023 are not considered typical and cannot be used as an accurate indicator of volume. The full schedule of proposed changes to fees is in the table below. 

Current fees

Half day / full day

Proposed FY25

Half day/ full day

Unit base / Bump in / Bump out

$200

$300

Low impact

$50

$75

Medium impact

$200 / $400

$250 / $500

High impact

$400 / $800

$500 / $1000

Major impact

$800 / $1600

$1000 / $2000

Administration / cancellation fee

Non-refundable

New fee

$75

 

Active Communities fees

82.     There are 45 Active Communities sites (pools and leisure facilities) across the Auckland region, 25 of these are managed directly by Auckland Council. Although annual adjustments for inflation have been applied, a full review of fees has not been conducted since amalgamation in 2010. The review of fees and charges for Active Communities services has been split into two phases due to its size and complexity. Phase one of the review implemented in 2023/2024 focused on standardisation of fees for the use of bookable spaces in council managed pool and leisure facilities to ensure that those hiring facilities are treated fairly across the city.  Changes to fees for bookable spaces from phase one for facilities managed under contract are being implemented in the current renegotiation of facility management contracts.

83.     In the second phase of the review the appropriate level of cost recovery for all the services provided from pool and leisure centres was assessed including for bookable spaces, memberships and entry fees. The assessment of cost recovery was balanced with enabling the council to provide a service that can be accessed by all parts of the community across the network. The second phase includes both council managed pool and leisure facilities and those managed under contract.

84.     The proposed changes introduce an Auckland wide membership option to allow customers to access all 45 pool and leisure council-managed and contracted sites. The estimated increase in revenue from this proposal is expected to be around $90k per year. It is also proposed to align legacy and discontinued memberships to current membership options over three years. In year one, it is estimated that around 4,500 membership fees (approximately 20 per cent) will increase by up to 7 per cent. The increase in revenue in year one is estimated to be $260k. 

 

 

 

85.     The proposed changes will establish baseline fees for like services across Active Communities activities. This will mean that the impact on each facility will vary. Most of the changes at the upper end of the scale are to bring charges in line with the charges elsewhere in the city. Establishing baseline fees for like services also means some fees will fall. Changes are proposed to the following baseline fees:

·    entrance to all council managed and contracted pools and leisure facilities along with an increased discount rate for qualifying customers.

·    swim school activities to better align to market rates, along with a new discount rate for those who qualify.

·    OSCAR before and after school care and holiday programme fees to maximise government subsidies and ensure costs are recovered.

·    term programme fees to simplify the fees framework.

86.     The proposed amendments are set out in Attachment C: Fees and charges changes proposal.

Venue hire and bookable spaces

87.     Venue hire and bookable spaces incorporate council managed community halls, community centres, art centres and bookable library spaces. Fees for 252 bookable spaces at 110 venues are included in this review. The existing pricing frameworks for bookable spaces contains variations and inconsistencies inherited from legacy councils.

88.     This review has been split into two phases. Phase one of this review is to ensure that baseline fees across similar venues are charged appropriately across the portfolio.

89.     Fees for around half of the venues reviewed in phase one are not proposed to change as they have been set at an appropriate level when compared to spaces nearby or with similar types of spaces or capacity. While some fees are proposed to increase, a number of fees are proposed to decrease. Overall, the proposed changes to venue hire fee are expected to the generate an increase in revenue of around $160k. The current discounts framework is not proposed to change, and discounts will be applied to eligible community groups and regular hirers. These proposed amendments are discussed in more detail in Attachment C: Fees and charges changes proposal.

90.     Phase two, planned for 2024/2025, will assess the appropriate level of cost recovery balancing value to the ratepayer and accessibility for customers and communities.

Animal management fees

91.     The council is investing in additional kennel capacity and increasing staff numbers to respond to a rapidly growing dog population. This investment is required to maintain service standards across Auckland and ensure the safety of staff. The additional cost is $5.9 million per year.

92.     The Animal Management Unit’s main function is to enhance the safety of Aucklanders by ensuring dogs and other animals are sufficiently controlled to prevent harm and nuisance and are compliant with the Dog Control Act 1996. Increased aggression experienced by field staff has also highlighted the need for Animal Management officers to attend high-risk jobs and areas in pairs.

 


 

 

93.     The registered dog population has increased at an annual rate of around 5.5 per cent compared to around 1-2 per cent annually pre-COVID-19. In 2022/2023, animal shelters housed and cared for approximately 6,600 impounded dogs, an increase of 32 per cent from the previous year. Around half of these dogs were registered at the time of impounding. Animal shelters have a capacity to house 214 dogs and have been operating at full capacity for the past year and a half. Fewer dogs are being claimed by owners, and in 2022/2023 only 52 per cent of impounded dogs were returned to their owners. With pressure on kennel space increasing, euthanasia rates have almost doubled as dogs cannot be accommodated within existing kennels spaces. This includes adoptable dogs.

94.     To respond to the growing need for services the council is:

·    increasing kennel capacity at Henderson and Manukau by 56 kennel spaces.

·    employing 54 additional field and shelter staff to support an increasing workload and to enhance health, safety and well-being of staff.

·    increasing capacity for the Regional Compliance team to pro-actively focus on reduction of incidents of dog attacks, aggressive and roaming dogs and to increase dog registrations and compliance of dogs classified as menacing. This team will also enhance health and safety for staff by providing capacity for them to work in pairs.

·    establishing the Pukekohe Animal Shelter, currently leased by the Waikato District Council, to be used as an adoption centre for the Auckland region. This facility will also be used as an education centre for school groups, at-risk adult workers and community groups, promoting responsible dog ownership and animal management services and also to provide dog bite prevention education.

95.     The cost of implementing these initiatives is $5.9 million including the cost of additional staff and managing the increased kennel capacity.

96.     Two options to fund these costs have been considered. Option one is to fund the costs from general rates, and option two is to retain the previously determined cost recovery level of 60 per cent fees and 40 per cent from general rates.  These options are discussed in more detail in Attachment C: Fees and charges changes proposal.

Option 1

97.     In this option, increased costs would be fully recovered through rates with only an inflation increase to animal management fees. The wider public of Auckland are the primary beneficiaries of the additional services rather than registered dog owners or individual service users. The additional costs of these investments are not caused by registered dog owners or the individual users of the services who make payments to the council. The costs are driven by dog owners who do not engage with the council. This option would shift the split of funding between fees and rates to around 50/50. Fully funding the $5.9 million cost of the additional services from general rates would add around 0.26 per cent to the overall rates increase. 

Option 2

98.     This option retains the cost recovery level of 60 per cent from fees and 40 per cent from general rates previously determined by the council as the appropriate funding mix. Fees relating to animal management would increase by around 30 per cent, including inflation. However, with increased costs proposed by this option, the number of unregistered dogs may also increase as dog owners may not be able to pay the higher registration costs. Staff also anticipate an increase in vet services as dogs that cannot be accommodated will need to be euthanised. Under this proposal, the total cost funded by rates is $3.3 million. This would increase rates by around 0.15 per cent.

 

 

 

Recommendation

99.     Officers recommend that the cost of the additional services be funded from general rates as the benefits of the service accrue to all Aucklanders not just the owners of registered dogs and the individual users of animal management services, those who pay fees for the use of council’s animal management services. This option also reduces the risk of much higher fees increasing the number of unregistered dogs across the region. The nature, scale, and cost of animal management services has changed since the original funding decisions were made. Officers have not had time to undertake a comprehensive analysis of the impact of these changes. Officers recommend that a full review of animal management fees is undertaken as part of the Annual Budget 2025/2026.

Tauākī whakaaweawe āhuarangi

Climate impact statement

100.   Recommendations in this report have a neutral climate impact as they primarily relate to the allocation of charges rather than decisions on activities to be undertaken. The CATTR Governance and Oversight Group will carefully consider climate impacts as part of its work looking at a CATTR reprioritisation.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

101.   The proposals in this report have been agreed on by the following departments or business units of the Auckland Council group:

a)      Waste Solutions

b)      Chief Sustainability Office

c)      Healthy Waters

d)      Auckland Transport

e)      Regulatory Services

f)       Customer and Community Services

g)      Tātaki Auckland Unlimited

h)      CCO/External Partnerships

102.   The proposals in this report have been reviewed by Legal Services.

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

Local impacts and local board views

103.   Some of the proposals in this report will directly impact local boards. Local boards considered the proposals in this report at their meetings in October. A majority of local boards supported consultation on the proposed fees and charges. However, a number of local boards suggested that no fee is charged to supervising adults at pools. Under the Local Board Funding Policy, local boards may consider setting charges which differ from revenue expectation set by the Governing Body. Revenue deficits will not be topped up from additional general rates allocation. Their views can be found in Attachment D - Local Board Feedback on proposals for fees and charges 2024-2025.

104.   Local boards will have opportunities to express their views on the impacts of regional decisions on their local community before final decisions are made in June 2024.

 


 

 

 

Tauākī whakaaweawe Māori

Māori impact statement

105.   The council does not hold information on the ethnicity of ratepayers or fee payers so is not able to identify the exact impact on the proposed changes on Māori. The impact of the proposed rates and fees changes on Māori will be similar to that on other residents in Auckland.

106.   Consultation on the Long-term Plan 2024-2034 will include engagement with the 19 iwi authorities. Targeted engagement to include mataawaka is also being planned for. This approach is still being finalised and will be presented to the Governing Body for approval in February 2024 ahead of public consultation.

Ngā ritenga ā-pūtea

Financial implications

107.   The financial implications of the recommended changes are noted in the relevant sections above.

108.   The proposed changes to rates, fees and charges will allow the council to meet its cost recovery targets for the relevant activities for the 2024/2025 financial year. If these adjustments are not made, the level of general rates increase may have to be higher than set out in the Mayor’s proposal or further alternative budget mitigations found.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

109.   Aucklanders may be concerned about the proposed level of increase in their rates and/or fees under the proposals in this report. The council will write to each ratepayer potentially affected by the proposed changes to the Rodney Drainage Districts Targeted Rate and the Waitākere Rural Sewerage Targeted Rate to advise them of the changes the council is considering. Business ratepayers in the areas proposed for the Onehunga BID will be engaged through the ballot process required to establish a BID. Current customers will be alerted to the proposed fee changes and consultation will be designed to raise wider awareness. We will let affected ratepayers and customers know how they can get more information and the opportunities to make their views known both in person and in writing.

Ngā koringa ā-muri

Next steps

110.   Resolutions passed by the Budget Committee at this meeting will be used to develop the consultation material for the Long-term Plan 2024-2034. These materials will include all changes agreed to by the Budget Committee at this meeting.

111.   In February 2024, the Budget Committee will be asked to adopt the consultation material.

112.   The recommended consultation process that will be considered under a separate report on the agenda for this meeting includes targeted approaches to ensure that ratepayers and customer/fee payers affected by the proposed changes are made aware of the proposals and the ways in which they can provide feedback.

 


 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Proposed land class boundaries for the Rodney - Drainage District Targeted Rate

 

b

Current scope of CATTR funded bus services

 

c

Fees and charges change proposals

 

d

Local Board Feedback on proposals for fees and charges 2024-2025

 

     

Ngā kaihaina

Signatories

Authors

Aaron Matich - Principal Advisor – Financial Policy

Andrew Duncan - Manager Financial Policy

Eric Wen - Senior Advisor -  Financial Policy

Melva Yee - Programme Manager and Data Analyst

Authorisers

Ross Tucker - General Manager, Financial Strategy and Planning

Peter Gudsell - Group Chief Financial Officer

 

 


Budget Committee

06 December 2023

 

Long-term Plan 2024-2034: Franklin Local Board Paths Targeted Rate for consultation

File No.: CP2023/17285

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To consider the recommendation from the Franklin Local Board to consult through the 10-year Budget 2024-2034 on the proposal to introduce a local Franklin Paths Targeted Rate to enable additional investment in paths across the Franklin Local Board area.

Whakarāpopototanga matua

Executive summary

2.       At its meeting on Tuesday, 24th October 2023, the Franklin Local Board considered a report from the Manager Financial Policy, on a proposal for consultation on a local paths targeted rate. The original report to the board can be found under Attachment A of this report.

3.       The local board resolved as follows:

“Resolution number FR/2023/170

MOVED by Deputy Chairperson A Cole, seconded by Member L Soole:

That the Franklin Local Board:

a)      whakaae / agree to recommend that the Governing Body consult on the introduction of a Franklin Local Board Paths Targeted Rate of $52 (GST inclusive) per Separately Used or Inhabited Part per annum, increasing each year with inflation, on all rateable properties in the Franklin Local Board area to fund additional investment in paths in the Franklin Local Board as part of the 10-year Budget 2024-2034.

b)      tono / request the communications and media strategy for the Long Term Plan include specific communications focused on the proposed Franklin Paths Targeted Rate, targeted to communities across the whole of the Franklin local board area, that both raises awareness, and informs the community about the proposal.

CARRIED”

4.       The committee is requested to consider the recommendation from the Franklin Local Board and decide whether to include as an item for consultation through the 10-year Budget 2024-2034.

5.       A decision is required to enable preparation of the consultation document and supporting information for public consultation.

 

Ngā tūtohunga

Recommendation/s

That the Budget Committee:

a)      kokuhi / consider the recommendation from the Franklin Local Board to consult through the 10-year Budget 2024-2034 on a proposal to introduce a local Franklin Paths Targeted Rate to enable additional investment in paths across the Franklin Local Board area.

b)      whakaae / agree that the consultation document and supporting information include an item for consultation on the proposed options for introducing a local Franklin Paths Targeted Rate to enable additional investment in paths across the Franklin Local Board area.

 

 

 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Original report to the Franklin Local Board Meeting of 24 October 2023

 

     

Ngā kaihaina

Signatories

Authors

Georgina Gilmour - Senior Local Board Advisor

Lucy Stallworthy - Senior Māori Outcomes and Engagement Advisor

Authoriser

Peter Gudsell - Group Chief Financial Officer

 

 


Budget Committee

06 December 2023

 

Long-term Plan 2024-2034: Proposed LTP Performance Measures

File No.: CP2023/18269

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To recommend changes to performance measures for consultation as a part of the Long-term Plan 2024-2034.

Whakarāpopototanga matua

Executive summary

2.       As part of the Long-term Plan 2024-2034 (LTP), council is legislatively required to prepare a set of performance measures (and targets) that the council considers appropriate to enable the public to assess the level of service for major aspects of the groups of activities.

3.       The direction to council from the Mayor and councillors for this LTP identified the need to improve trust and confidence and tell a better story about council’s performance, including where we are performing well and where we need to do better using performance measures (including financial and non-financial measures).

4.       The performance measures (“measures”) are used to monitor the council group’s progress against the outcomes as part of the longer-term Auckland Plan 2050 and how council plans to contribute to them. The service performance measures framework is included as part of this.

5.       The performance measures and associated targets proposed for inclusion in the Long-term Plan 2024-2034 will be considered by Audit New Zealand (Audit NZ) to assess whether these enable a reasonable assessment of service levels.

6.       This report focuses on the consideration of performance measures as part of the Long-term Plan 2024-2034, however the wider council performance reporting landscape also includes (but is not limited to) strategic outcome reporting (via the three-yearly Auckland Plan monitoring report), council controlled organisations’ (CCOs) Statement of Intent (SOI) quarterly and monthly committee reporting and internal operational performance reporting.

7.       Council officers undertook an assessment of the existing suite of LTP performance measures that fall within the existing groups of activities. This involved an analysis and review alongside a set of six principles and key considerations.

8.       The aim was to produce a smaller, higher quality set of draft performance measures to improve performance transparency and accountability across the council group.

9.       A higher quality set of measures focusing on the performance dimensions of quantity (i.e. how much is provided), timeliness (i.e. when it is provided) and the quality (i.e. how well the services are provided) would provide improved clarity in relation to the performance of Auckland Council Group’s services and activities, and better enable the public to assess council’s delivery against its identified levels of service and community outcomes.

10.     From the analysis a draft set of proposed measures was produced with recommendations to either add, remove, retain or modify existing performance measures (refer to Attachment A).

11.     As part of this LTP, to enhance performance transparency, officers are also recommending the inclusion of a consistent group-wide set of measures for financial performance, climate mitigation and adaptation, and Māori outcomes. However, council officers are still progressing these and given they do not fall under the existing groups of activities, they will not be included with this report, but will be included as part of the Supporting Information to support the consultation on the Long-term Plan 2024-2034.

 

 

12.     From 30 June 2024, the council will be required (under the Financial Markets Conduct Act 2013) to make annual climate statements for the Auckland Council Group, based on the Aotearoa New Zealand Climate Standards. The standards require reporting entities to disclose the metrics and targets they use to measure and manage climate-related risks and opportunities, including greenhouse gas emissions (GHGs). Given the prominence of the LTP performance measures, we have considered the most significant measures that demonstrate how we are performing against our GHG emission reduction targets and how we are managing our climate-related risks.

13.     Local boards have an important role to play in delivering key services for communities across Auckland. A smaller set of measures for local council services will enable a better understanding of how council is delivering at a local level and empower elected members in decision making. These have been included as part of this report.

14.     Staff also recommend a set of measures specifically customised for each Local Board given the differing priorities and needs for individual local boards by making local measures more responsive to local aspirations. These will be guided by local board plans and reflect the increased decision-making powers of local boards over local community service levels. These will be finalised as part of the local board agreements in June 2024 and are therefore not included as part of this report.

15.     The service performance measures framework, approach and draft performance measures were discussed at Budget Committee workshops on 6 September 2023 and 18 October 2023.

16.     The draft performance measures, framework and approach were also submitted to Audit NZ, with Audit NZ providing initial feedback on 10 November 2023.

17.     As part of this report, officers have considered and incorporated, where appropriate, the most recent Audit NZ feedback and work continues in response to subsequent queries from Audit NZ.

18.     Progress continues as the draft performance measures are further refined, relevant adjustments made, officers respond to Audit NZ and legal feedback and the internal sign-off process continues.

19.     Proposed performance measures will be included in the Supporting Information to support consultation on the Long-term Plan 2024-2034.

20.     Upon confirmation of the final suite of LTP performance measures in June 2024, reporting of these will be included as part of the Annual Report 2024/2025 and regular quarterly committee reporting.

Ngā tūtohunga

Recommendation/s

That the Budget Committee:

a)      ohia / endorse the performance measures framework review and approach and the draft performance measures for the Long-term Plan 2024-2034 included in Attachment A, subject to further refinement and the completion of audit and legal reviews.

b)      tuhi ā-taipitopito / note that in February 2024 the Budget Committee will be requested to adopt the Supporting Information for consultation on the Long-term Plan 2024-2034 which will include a complete set of draft performance measures, including baselines (where appropriate) and targets.

 


 

 

Horopaki

Context

21.     As part of the final Long-term Plan 2024-2034, council is legislatively required to include performance measures (and targets) that the council considers will enable the public to assess the level of service for major aspects of the Groups of Activities (GOAs). Some of these performance measures are mandatory and set by the Secretary for Local Government (that is, the Chief Executive of the Department of Internal Affairs (DIA)).

22.     The LTP performance measures (“measures”) are used to monitor the council group’s progress towards delivering outcomes for Auckland and are aligned to the longer-term Auckland Plan 2050, thus providing measurement of how the council is contributing to the Auckland Plan 2050 outcomes.

23.     The performance measures, where not mandatory, were derived using our service performance measures framework.

24.     Auckland Council Group is committed to providing regular and transparent information about its activities. This includes financial and non-financial performance information, forming the basis for council’s public accountability for the provision of its activities and services, and to support elected members with quality advice and information.

25.     The CCO Framework Review raised a lack of consistency for climate and Māori outcome measures across the council group.

26.     The performance measures and associated targets proposed for inclusion in the Long-term Plan 2024-2034 are being considered by Audit NZ to assess whether council’s performance measures enable a reasonable assessment of service levels. If adopted, the performance measures and targets in the final LTP will provide the basis for the council’s annual report and form part of regular quarterly committee reporting.

27.     This report focuses on the consideration of performance measures as part of the Long-term Plan 2024-2034, also detailing the service performance measures framework and approach. However, the wider council reporting landscape also includes (but is not limited to) strategic outcome reporting (via the three-yearly Auckland Plan monitoring report), CCOs Statement of Intent (SOI) quarterly and monthly committee reporting, and internal operational performance reporting.

Tātaritanga me ngā tohutohu

Analysis and advice

28.     The following section outlines the key considerations, principles, and underlying process applied during the review of council’s performance measures. It provides a summary of proposed changes at the conclusion of the review. 

29.     Further detail relating to the proposed performance measures is set out in Attachment A of this report and will be included in the Supporting Information to support consultation on the Long-term Plan 2024-2034 subject to further refinement and review.

Key considerations

30.     Council remains committed to providing transparency and accountability for the services and activities it provides.

31.     The August 2023 direction to council staff from the Mayor and councillors for the LTP identified the need to use performance measures (both financial and non-financial) to improve trust and confidence and tell a better story about council’s performance, including where we are performing well and where we need to do better.

 


 

32.     A set of measures that is better focused on the performance dimensions of quantity (i.e. how much is provided), timeliness (i.e. when it is provided) and the quality (i.e. how well the services are provided) would provide improved clarity in relation to the performance of council’s services and activities, and would better enable the public to assess council's delivery against its targeted levels of service and community outcomes.

33.     From 30 June 2024, the council group is required to produce a mandatory climate statement as required by the Financial Markets Conduct Act 2013, based on the Aotearoa New Zealand Climate Standards. The standards require reporting entities to disclose the metrics and targets they are using to measure and manage climate-related risks and opportunities. In addition, reporting entities are required to measure and disclose their greenhouse gas (GHG) emissions. Given the prominence of the LTP performance measures, we have considered the most significant measures that demonstrate how we are performing against our GHG emission reduction targets and how we are managing our climate-related risks. Given these will not be reported against the groups of activities, these will appear as additional information in the Supporting Information but will not be included within this report.

34.     There is existing reporting against council’s emission reductions as part of the annual report and through other reporting mechanisms (such as through the quarterly CCO SOI committee reporting).

35.     Local Boards have an important role to play in delivering key services for communities across Auckland. As part of this LTP, council is recommending a smaller set of performance measures for local council services which is intended to enable a better understanding of the major services council is delivering at a local level and empower elected members in decision making.

36.     Council also recommends a second, smaller set of tailored measures (in addition to the measures identified for local council services) specifically for inclusion in local board agreements. These tailored measures are intended to reflect local priorities, which are guided by the recently adopted local board plans and respond to the different needs and priorities of individual local boards. The full set of local board agreement measures will also reflect the increased decision making of local boards. These will be discussed during local board workshops in March 2024 and finalised in June 2024, as part of the finalisation of local board agreements for inclusion in the final LTP. Therefore, the tailored local board performance measures are not included with this report.

Six key principles

37.     Officers identified six key principles to help determine the suitability of each performance measure, specifically that these:

i)       clearly demonstrate public accountability and transparency by providing a clearer view of our service performance about what is most critical and significant that communities expect council to deliver.

ii)       enable council to closely scrutinise changes to proposed levels of service by setting targets that are clearly linked to proposed funding levels. For example, it is expected that as a result of discussions pertaining to council’s investment scenarios and Investment Impact Assessments, there will be a direct impact on service delivery performance measures and targets.

iii)      overall are a smaller set of better quality measures which are linked to critical performance dimensions of quality, quantity and/or timeliness.

iv)      be considered alongside the annual CCO Statement of Intent process.

v)      make a connection with, and leverage off, other existing reporting (for example, the three-yearly Auckland Plan monitoring report and CCOs Statement of Intent quarterly reporting process).

vi)      be consistent across the council group for key focus areas such as climate mitigation and adaptation, financial performance, and delivering on our commitment for and with Māori.

Review process

38.     Officers undertook an assessment of the existing suite of over 600 LTP performance measures across the council group. These included performance measures across the following Groups of Activities:

·        Roads and footpaths

·        Public transport and travel demand management

·        Stormwater management

·        Local council services

·        Regionally delivered council services

·        Council controlled services.

39.     Over 500 of these are within the Local council services Group of Activity. Watercare measures have been left out of scope for now due to uncertainty relating to the government’s water reform programme.

40.     The assessment included:

i)       scrutinising performance measure purpose, definitions, assumptions, calculability and limitations (such as difficulties in data collection for certain performance measures)

ii)       historical time-series analysis

iii)      conducting a baseline assessment

iv)      consideration of advice from subject matter experts (for example, the implications of retaining, discontinuing, adding new or modify existing performance measures)

v)      consideration of good performance measure practise, including recommendations from the Office of the Auditor General (OAG) and alignment to the External Reporting Board’s Service Performance Reporting Standard guidelines (PBE FRS48).

41.     The assessment identified the need to reconsider the suitability of some performance measures given:

i)       some measures were more suited for measuring internal performance or ‘input-focussed’ (such as customer utilisation). However, it is acknowledged that this is still an important factor and will continue to be reported as part of other council reporting.

ii)       a number of measures were deemed high-level outcome measures (measures where council is one of many contributors towards an outcome or there is ambiguity with being able to attribute council’s contribution to the outcome). However, these can continue to be reported separately as part of monitoring how the council is contributing to the Auckland Plan 2050 outcomes.

iii)      a lack of calculability (given the complexity of the measure and difficulty in data collection). This also meant that some measures have never been reported and extensive disclosures were required in the annual report.

iv)      the review also found that a lower number of better-quality service measures would: 

A)      enable a better assessment of the level of service council is providing and better track the performance against its service and activities.

B)      support a more cohesive, performance narrative.

42.     The large volume of measures also made it challenging to provide a cohesive, connected group performance story about how well we are delivering against our services and activities.

43.     Following the assessment, analysis, and checking of alignment with the six key principles and key considerations, a draft list of performance measures was produced comprising around 100 regional measures and 200 local board measures.

 

 

44.     Officers recommend the following changes, which propose to either retain, modify, remove or add performance measures:

i)          Add measures

Officers recommend the addition of measures which can attribute service performance and delivery more directly to specific funding levels.

For example, officers have recommended measures such as: library opening hours/service uptime and physical visits for pool and leisure centres and the percentage of sporting and recreational facilities available.

Following further workshop discussions relating to council’s investment scenarios (informed by the results of the Investment Impact Assessment work), it is has become clear that investment decisions for the LTP will have a direct influence on service performance measures and targets. The targets will therefore need to be set after budget allocation decisions have been.

ii)            Modify measures

Some proposals to consolidate several performance measures into one are recommended to improve consistency in terms of granularity. For example, in Environmental services, the proposal is to consolidate the local waste minimisation projects, sustainability or low carbon projects and local water quality of natural environment improvement measures into one environmental programme performance measure, while the project performance will continue to be measured at an individual local board level.

As part of the suite of local board performance measures, it is proposed to have tailored measures specific for each Local Board which will form part of the local board agreement process. These specific local boards performance measures will be identified in local board workshops from March 2024 and finalised in local board agreements in June 2024. Therefore, these have not been included in this report.

iii)           Retain measures

Officers recommend keeping approximately 70 existing measures, including 19 mandatory measures that have been set by the Secretary for Local Government (i.e. the Chief Executive of the Department of Internal Affairs (DIA)). These measures relate to the mandatory groups of activities required under the Local Government Act 2002, being Water supply, Sewerage and the treatment and disposal of sewerage (i.e. wastewater), Stormwater drainage, Flood protection and control works, and Roads and footpaths.

These measures are verifiable, have a robust methodology and targets, meet the six principles and align to the key considerations. Retaining the water related measures will be dependent on changes to the government’s water reform programme.

Officers are currently working through measures where there are challenges around data availability and quality, including one mandatory DIA measure.

iv)           Remove measures

Council officers propose discontinuing around 40 regional measures, mainly from local council services and regionally delivered council services. This recommendation is given for four main reasons:

i)               They are more suited as internal performance measures. However, they are still considered important and will continue to be monitored and reported on as part of other reporting mechanisms (for example, through internal business performance reporting).

 

 

 

 

ii)         The measures are ones where council is unable to directly influence the results or has limited influence over through our service provision. These are outcome measures that are already reported on as part of other external surveys (for example, the percentage of Aucklanders that feel safe in local town centres which is currently collected as part of the Quality of Life Survey).

iii)        The measure is simply a count and doesn’t relate directly to a service or activity. For example, “the percentage of adopted core strategies” achieves a 100% target year on year, as it is a mandatory consideration when developing strategies, policies and plan, however it does not measure the quality of any services provided to the community.

iv)        The performance measure sits more appropriately at the local board level and will form part of the measures within local board agreements which will be finalised in June 2024.

45.     This report does not include:

i)          Targets and baselines for performance measures, given these are still under development, confirming methodology and calculation and some are dependent on budget allocation decisions. Targets and baselines will be included in the Supporting Information to support consultation on the Long-term Plan 2024-2034.

ii)         Tailored performance measures specific to each of the Local Boards, as these will form part of the local board workshops to be held in March 2024 and finalised as part of the local board agreements in June 2024.

iii)        A set of consistent measures across the group for financial performance, climate mitigation and adaption, and Māori outcomes which are intended to better reflect council’s integrated performance across the group for these areas. Currently reporting for these key focus areas are reported through other mechanisms (for example, some are reported as part of the CCO Statement of Intent process and some are reported as part of some of the groups of activities).

46.     However, the consistent group-wide set of performance measures are being considered as additional information that sit outside of the existing Groups of Activities part of the LTP. Work is ongoing on these measures, and they are not included as part of this report, but they will be included as part of the Supporting Information to support consultation.

47.     Progress continues as the draft performance measures are further refined, relevant adjustments made, as officers respond to Audit NZ and legal feedback, and as the internal sign-off process is completed.

48.     Upon confirmation of the final suite of LTP performance measures in June 2024, reporting of these will be included as part of the Annual Report 2024/2025.

Tauākī whakaaweawe āhuarangi

Climate impact statement

49.     The climate impacts are considered as a part of the reporting framework across the council group, including climate-related performance measures and associated risks (as covered in the body of this report).

 


 

 

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

50.     The proposals in this report have been agreed on by the following departments or business units of the Auckland Council Group:

a)      Chief Planning Office

b)      Chief Sustainability Office

c)      Governance

d)      Group Services

e)      Infrastructure and Environmental Services

f)       Regulatory Services

g)      Customer and Community Services

h)      Auckland Transport

i)       Tātaki Auckland Unlimited

j)       Eke Panuku

k)      CCO/External Partnerships.

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

Local impacts and local board views

51.     Performance measures within Local council services may be included within local board agreements where relevant to individual local boards. Local boards will also have the ability to select their own performance measures in local board workshops from March 2024 and set a local board level target within the local board agreements in June 2024. Local boards will be able to consider the individual impacts and their views in the upcoming process.

Tauākī whakaaweawe Māori

Māori impact statement

52.     The Kia Ora Tāmaki Makaurau (KOTM) performance management framework provides direction to the council group on the delivery of Māori outcomes and enables the monitoring and measurement of the council group’s contribution towards these outcomes.

53.     The foundation for KOTM is to ensure the Auckland Council Group is focused on and delivering positive outcomes for and with Māori in Tāmaki Makaurau. As the LTP performance measures form part of the KOTM framework, these will be updated once the measures are adopted in June 2024..

Ngā ritenga ā-pūtea

Financial implications

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


 

 

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

55.     Outcomes following the consultation process and Aucklanders’ feedback may lead to some amendments to council’s performance measures and targets.

56.     Additional uncertainty is caused by the changes in the government policy directions and potential legislation changes, which may impact the reporting or exclusion of the water-related performance measures from this LTP. 

Ngā koringa ā-muri

Next steps

57.     Officers will finalise the performance measures, associated targets and baselines. These will be presented to the Budget Committee in February 2024, when the Budget Committee is asked to formally adopt the consultation material. The performance measures, targets and/or baselines will be included in the Supporting Information. 

58.     Following the consultation process, the performance measures will be incorporated for adoption in the final LTP in June 2024 and reported on in our annual report from 2024/2025.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Draft Performance Measures

 

     

Ngā kaihaina

Signatories

Authors

Karuna Dahya - Manager Group Performance Reporting

Marina Skocigoric - Performance Analyst & Document Specialist

Michael Brown - Group Performance Analyst

Authorisers

Ross Tucker - General Manager, Financial Strategy and Planning

John Bishop - Group Treasurer

 

 


Budget Committee

06 December 2023

 

Long-term Plan 2024-2034: Housing and growth infrastructure

File No.: CP2023/18010

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To propose the inclusion of information related to infrastructure investment requirements for key priority growth areas in the consultation materials for the Long-term Plan 2024-2034 (LTP).

Whakarāpopototanga matua

Executive summary

2.       Rapid population growth in Auckland is creating substantial demand for infrastructure investment in both brownfield and greenfield areas which far exceeds Auckland Council’s capacity to fund and finance using its current set of funding tools.

3.       Proceeding with new development in areas without the necessary public infrastructure in place will create major problems. However, the need to take a constrained approach to spending in the LTP means that the proposed investment in growth infrastructure in priority geographical areas over the next decade is less than what is required to achieve the council’s desired strategic outcomes.

4.       One solution could be for council to simply increase its infrastructure investment and accept higher council rates and debt to enable this. However, this needs to be carefully balanced against affordability considerations.

5.       For Drury and the inner North West, the infrastructure investment to address the cumulative impacts of development may still be able to be delivered over a 30-year planning horizon. It is therefore proposed to include additional investment provision for this longer-term infrastructure over the 2034-2054 timeframe in the consultation materials for the LTP. This would support the council’s approach of using its development contributions policy to recover a fair share of infrastructure costs from developers over a 30-year horizon.

6.       However, in the case of the Auckland Housing Programme areas, infrastructure investment needs to occur over a much shorter timeframe  in order to achieve the outcomes that central government is seeking to achieve with its Housing Acceleration Fund. The Mayoral Proposal is supportive of additional infrastructure investment over the next 10-years to progress these outcomes, but only if this doesn’t put too much pressure on the council’s finances.

7.       There is currently a substantial gap between the investment proposed to be included in the draft budgets for consultation on the LTP for infrastructure to support the Auckland Housing Planning areas over the next decade and the $2 billion or more that is currently estimated to be required over that timeframe.

8.       This gap may be able to be narrowed by working with Kainga Ora and asset owners across the council group on an indicative package of additional growth infrastructure with an associated set of funding assumptions comprised of HAF funding, additional Waka Kotahi subsidies and development contributions.

9.       These adjustments may be able to be added to the draft budgets for consultation on the LTP with minimal impact on council rates and debt, and if it can be established that the funding assumptions are credible and have a sufficient evidential base. The detail of these adjustments would need to be worked through and if these two criteria are met they would be incorporated into the consultation material for the Budget Committee to adopt in February 2024 following the completion of the audit review.

 

Ngā tūtohunga

Recommendation/s

That the Budget Committee:

a)      whakaae / agree that the consultation material for the Long-term Plan 2024-2034 will include provision for the long-term growth infrastructure over a 30-year horizon for the Drury and inner North West priority growth areas.

b)      whakaae / agree to include additional growth infrastructure in the draft budget for consultation on the Long-term Plan 2024-2034 for the Auckland Housing Programme areas over the next decade if this can be supported by credible funding assumptions that would have minimal impacts on council rates and debt.

Horopaki

Context

Growth and infrastructure

10.     Rapid population growth in Auckland is creating substantial demand for infrastructure investment in both brownfield and greenfield areas which far exceeds Auckland Council’s capacity to fund and finance using its current set of funding tools.

11.     A key part of the council’s response to this challenge in the current Long-term Plan 2021-2031 and the recently adopted Future Development Strategy was to focus its infrastructure investment on a small number of key growth areas.

12.     The council has agreed the following three priority growth areas with central government, each of which have infrastructure investment requirements that are estimated to exceed $2 billion over the medium to long term:

·    The Auckland Housing Programme large scale project areas (Mt Roskill, Mangere and Oranga) and the Tamaki Regeneration area

·    The inner North West (Westgate, Whenupai and Redhills)

·    Drury

Auckland Housing Progamme

13.     For the last few years, Auckland Council and central government have been working collaboratively together to achieve jointly agreed housing outcomes in the areas of Mt Roskill, Mangere, Oranga and Tamaki where Kainga Ora has a high concentration of social housing.

In April 2022, the government allocated $1.996 billion from the Housing Acceleration Fund (HAF) for infrastructure and land development work in this area to be led by Kainga Ora as its lead delivery agency. 

The council has entered into a Memorandum of Understanding with the government setting out a collaborative approach to progressing infrastructure development in these priority locations, and their intention to work together on finding innovative solutions to the infrastructure funding and financing challenges.

Development contributions policy

14.     The council has agreed that its policy on development contributions should recover from developers a fair share of the full long-term costs of the infrastructure needed to support housing and business growth.  This means looking beyond the standard 10-year planning horizon when considering the cumulative demand that new development places on infrastructure networks and the benefits that new communities will enjoy from longer-term infrastructure development.


 

 

15.     As a first step in implementing this change, in April 2023 the council adopted an amended contributions policy for Drury with a 30-year planning horizon. Subsequently, good progress has been made on analysing long-term growth infrastructure requirements for the inner North West and Auckland Housing Programme areas.

Tātaritanga me ngā tohutohu

Analysis and advice

16.     Investment in growth infrastructure in priority areas is desirable and consistent with the council’s adopted plans and strategies. While it is not council’s role to build houses, the council does have a role to provide safe, efficient and effective public infrastructure for current and future Aucklanders.

17.     The implications of deferred or underinvestment in infrastructure to support growth include:

·    a slower rate of housing and business development in Auckland 

·    poorer urban development outcomes which could lead to significant social and environmental issues

·    non-compliance with council’s adopted policies such as its open space provision policy

·    higher infrastructure costs in the future due to construction price escalation and rising land costs

·    risk of orphaned investment if new areas are only serviced by one type of infrastructure.

·    the risk of needing to dig twice, where the need to upgrade recently completed assets to add additional capacity can lead to significant additional cost and disruption. 

18.     In short, proceeding with new development in areas without the necessary public infrastructure in place will create major problems. To some extent, the council can seek to use its regulatory and planning tools to avoid this happening, but government reform is making this type of response less and less effective.

19.     The Mayoral Proposal included elsewhere on this agenda sets out proposed draft budgets for the Auckland Council group for the next ten years for the purpose of public consultation on the Long-term Plan 2024-2034 (LTP).  The LTP is an important document for infrastructure funding as it sets out the council’s planned investment in growth infrastructure for which it will seek to recover costs via the council’s development contribution policy, and through its connection to the Regional Land Transport Plan 2024-2034 (RLTP), the basis for accessing Waka Kotahi subsides funded from the National Land Transport Fund. 

20.     As set out in the Mayoral Proposal, the financial context for this LTP is a very challenging one and the council group is needing to take a constrained approach to infrastructure investment.  In addition, there is a need to prioritise some critical expenditure such as infrastructure asset renewals and investment to make the city more resilient to future flooding events. This means that the proposed investment in growth infrastructure in the priority growth areas over the next decade is less than what is required to fully enable the housing and development outcomes that the council would ideally like to see.

21.     One solution to this could be for council to simply increase its infrastructure investment and accept higher council rates and debt to enable this. However, this needs to be carefully balanced against affordability considerations. To some extent, the proposed approach of consulting with Aucklanders on a wide range of options for this LTP could enable the council to move in this direction post consultation if there was strong public support for accepting higher rates and debt to achieve improved housing and development outcomes.     

 


 

 

 

22.     In the case of Drury and the inner North West, constrained infrastructure investment over the next decade might be less of an issue if the infrastructure investment to address the cumulative impacts of development is still delivered within the overall 30-year planning horizon. Further assessment may be required to better understand the implications of the likely phasing of infrastructure investment in these areas in relation to the anticipated staging and sequencing of development. The approach of using the council’s development contributions policy to recover a fair share of infrastructure costs from developers over a 30-year horizon would remain appropriate (with any necessary modification for revised infrastructure timing plans) provided that this long-term investment is adequately provided for in the LTP.

23.     However, in the case of the Auckland Housing Programme areas, taking a long-term staged approach to housing development is contrary to progressing the outcomes that central government is seeking to achieve.  The very purpose of the Housing Acceleration Fund (HAF) is to speed up housing development in priority areas.

24.     The Mayoral Proposal supports Kainga Ora’s activities to redevelop and intensify the priority brownfield growth areas in Auckland, but only if those projects are supported by the HAF and Waka Kotahi subsidies to the extent that it minimises council’s contribution to the infrastructure.  

25.     Preliminary analysis of the detailed capital expenditure budgets underpinning the Mayoral Proposal, which does not include any assumption of HAF funding, indicates that across the council group only around $500 million of growth infrastructure investment for these areas may be able to proceed over the next 10 years.  This is well short of the $2 billion or more that is currently estimated to be required over that timeframe. 

26.     Staff propose to work with Kainga Ora and asset owners across the council group to quickly develop an indicative package of additional growth infrastructure for the Auckland Housing Programme with an associated set of funding assumptions comprised of HAF funding, additional Waka Kotahi subsidies and development contributions.

27.     It is recommended that these budget adjustments be added to the draft budgets for consultation on the LTP, but only on the basis that:

a)   the overall impact on council rates and debt is minimal, and 

b)   the funding assumptions are credible and have a sufficient evidence base to demonstrate that these would be reasonable financial forecasting assumptions for the purpose of informing public consultation on the council’s LTP.  For example, this might be dependent on the new coalition government providing a clear indication that they are supportive of Kainga Ora continuing with their redevelopment activities in the Auckland Housing Programme areas.

Tauākī whakaaweawe āhuarangi

Climate impact statement

28.     The climate impacts of development occurring in various priority growth areas have previously been considered as part of the council’s growth and spatial planning work over recent years. 

29.     This report primarily addresses funding and financing of the infrastructure to support the development of those priority areas.  If development proceeds in areas without adequate infrastructure due to funding constraints, this could result in poor climate outcomes.   

 


 

 

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

30.     Asset owners from across the council group have been working together to assess the infrastructure requirements in each of the council’s priority growth locations.  If the recommendations of this report are agreed, council finance staff will work closely with these groups to implement the recommendations.

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

Local impacts and local board views

31.     Local boards have provided input into the council’s growth and spatial planning work. For the local boards whose area includes one of the priority growth areas in this report, the relevant local boards will continue to be updated on investment plans and growth infrastructure delivery within their local area. 

32.     The funding recommendations in this report are a regional matter for the Budget Committee to consider. However, local boards have been involved in the broader LTP process and will have the opportunity to comment on this and any related matters as the LTP process continues.      

Tauākī whakaaweawe Māori

Māori impact statement

33.     Māori outcomes have been considered as part of the council’s growth and spatial planning work and Māori have been a key participant in those processes.

34.     No specific implications for Māori have been identified in relation to the recommendations of this report.

Ngā ritenga ā-pūtea

Financial implications

35.     The financial implications are covered in the body of the report.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

36.     The key risks associated with deferred or underinvestment in growth infrastructure are set out in the body of the report.

37.     There is risk that the funding assumptions related to HAF funding discussed in this report may not be credible or may result in material impacts on council rates and debt. If either of these situations eventuate, staff would not proceed with making adjustments to the draft budget for public consultation on the LTP.    

Ngā koringa ā-muri

Next steps

38.     If the recommendations of this report are agreed, staff will work with Kainga Ora and asset owners across the council group to quickly develop an indicative package of additional growth infrastructure for the Auckland Housing Programme with an associated set of funding assumptions comprised of HAF funding, additional Waka Kotahi subsidies and development contributions.

39.     Staff would then test these assumptions against the two criteria identified in the report and include these in the draft budget for consultation for adoption by the Budget Committee if these criteria are met.

 

 

40.     Staff would also work with the asset owners to compile the best information on long-term infrastructure costs for Drury and the inner North West and ensure that this information is included in the LTP consultation materials

41.     The Budget Committee will be asked to adopt the consultation materials in February (incorporating any adjustment), following completion of the audit review of the documents.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.    

Ngā kaihaina

Signatories

Author

Ross Tucker - General Manager, Financial Strategy and Planning

Authoriser

Peter Gudsell - Group Chief Financial Officer

 

 


Budget Committee

06 December 2023

 

Long-term Plan 2024-2034: Communication and Engagement Plan

File No.: CP2023/18005

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To recommend to the Budget Committee that the proposed Communications and Engagement Plan for public consultation on the Long-term Plan 2024-2034 is approved.

Whakarāpopototanga matua

Executive summary

2.       Every three years, councils are required to adopt a long-term plan (referred to by Auckland Council as the 10-year budget), with an annual plan (referred to by Auckland Council as the annual budget) adopted in the intervening years.

3.       The council is required to use the special consultative procedure (SCP) (as set out in the Local Government Act 2002) in adopting the 10-year Budget 2024-2034. The proposed Communications and Engagement Plan meets the requirements of an SCP.

4.       The online engagement hub will be used to engage Aucklanders in a digital format. This will be complemented with a range of events (face to face and online) that will be held across the region, enabling Aucklanders to have their say on the 10-year Budget 2024-2034 in ways that suit them. Hard copy materials will also be available in libraries, service centres and local board offices across the region. Targeted engagement will take place for any groups affected by specific rating changes.

5.       The communications and engagement approach has been reviewed to deliver a cost-effective programme of activities that maximise return on the allocated budget, to achieve reach to its target audiences.

6.       This approach is designed to ensure the council hears from a wide range of Aucklanders, including Māori, Pacific, diverse communities, stakeholder interest groups and young people.

7.       This plan will be supplemented by the range of deliberative approaches which were agreed by the Governing Body in October 2023 to allow for early planning.

8.       Auckland Council has obligations to enable Māori participation in council decision-making processes. A Māori engagement plan has been developed to meet these obligations.

9.       Public consultation on the 10-year Budget 2024-2034 is planned to run from midday on 28 February 2024 until 11.59pm on 28 March 2024.

10.     Following the consultation period, a summary of feedback will be prepared for decision makers. After decisions have been made, those decisions will be communicated widely to all submitters and stakeholder groups involved in the process.

 


 

 

Ngā tūtohunga

Recommendation/s

That the Budget Committee:

a)      whakaae / agree the proposed communications and engagement plan for the 10-year Budget 2024-2034 set out in this report, noting:

i)          public consultation is planned to run from midday on Wednesday 28 February 2024 until 11.59pm on Thursday 28 March 2024

ii)         feedback can be provided through a range of channels; written, in person, telephone and digital

iii)        various events and community forums will be held across the region (either in-person or virtually) to allow Aucklanders to have their views heard and provide feedback

iv)        webinar information sessions will be available during the consultation period to give the public an opportunity to listen to and ask questions of elected members and/or subject matter experts

v)         councillors will be offered the opportunity to participate in panel discussions which would be made available for Aucklanders to listen to/view, to understand what the budget means for their area

vi)        post consultation, regional and local briefing reports will be prepared to provide a summary of public feedback received across all channels for decision makers

vii)       there will be a joint hui between the Tūpuna Maunga Authority and council to consider feedback on the draft Tūpuna Maunga Authority Operational Plan 2023/2024 ahead of adoption of the final plan

viii)       a summary of the final decisions made will be made publicly available and widely communicated in July 2024.

b)      whakaae / agree to delegate to the following elected members and council officers the responsibility to hear feedback at the Have Your Say events for consultation on the 10-year Budget 2024-2034:

i)          the mayor and councillors

ii)         local board chairs and local board members

iii)        staff approved by the Group Chief Financial Officer.

 

Horopaki

Context

10-year Budget 2024-2034

11.     Once every three years, councils are required to adopt a long-term plan (referred to by Auckland Council as the 10-year budget), and in the intervening years an annual plan (referred to by Auckland Council as the annual budget). Next year the Governing Body will adopt the 10-year Budget 2024-2034.

12.     Each year the budget enables rates to be set for the year and includes setting the local board priorities for each of our 21 local boards as part of each local board agreement for the year. As part of this process, public consultation is conducted to get feedback on the proposed budget from residents, customers and stakeholders, so that the council can consider the views and preferences of those who may be affected by, or interested in, the proposal. The feedback that is received will feed into the final proposal for consideration by the Governing Body.

 

 

Engagement at Auckland Council

13.     The council views engagement as a genuine dialogue with Auckland’s communities to help us make better decisions. High quality engagement with Aucklanders will allow us to make robust decisions that benefit communities and produce plans that are fit for purpose.

14.     The council is also required to provide opportunities for Māori to contribute to the council’s decision-making processes. Our engagement practices must meet any applicable obligations required.

Significance and Engagement Policy

15.     Auckland Council’s Significance and Engagement Policy specifies how and when communities can expect to be engaged with on different issues, assets or other matters. It enables the council and our communities to understand the significance the council places on proposals and decisions relating to those matters.

16.     As part of the policy implementation, the council follows the International Association of Public Participation (IAP2) good practice approach, which is the most widely recognised international body for public participation.

Tātaritanga me ngā tohutohu

Analysis and advice

Communications and engagement plan

Introduction

17.     The Budget Committee has been provided with the draft high-level approach to gathering feedback at a workshop on 13 September 2023. This included Have Your Say (HYS) events, regional stakeholder events and deliberative democracy approaches.

18.     To ensure that all public feedback received through HYS events (including through spoken interaction) can be incorporated into formal feedback, a delegation is sought to give the responsibility for hearing feedback to all elected members and staff approved by the Group Chief Financial Officer.

19.     Further detail on key engagement approaches follows. More detail is set out in the Integrated Communications and Engagement Plan in Attachment A.

Communications

20.     Communications activities have been designed to reach out to Aucklanders to raise awareness, encourage participation and to submit feedback. These include:

·   a paid marketing campaign running across digital, social media, radio and print

·   proactive media relations

·   use of Auckland Council channels, including the OurAuckland website, social media and digital screens

·   council controlled organisation (CCO) partner channel collaboration where appropriate

·   contact via databases and targeted emails

·   content in local papers and localised social media content.

 


 

 

 

Consultation documentation and translations

21.     The consultation material and process should provide an effective basis for the public to participate in the council’s decision-making process.

22.     The table below summarises the material that will be developed to support consultation on the 10-year Budget 2024-2034.

Table 1: Material prepared to support consultation

Document

Description

Consultation Document

The document required by the Local Government Act 2002 which identifies and explains key budget issues. Includes a feedback form which sets out the consultation questions for the 10-year Budget (see below).

Translated summary of Consultation Document

A summary of the 10-year Budget key issues in the Consultation Document created for translation purposes and available in English, Te Reo Māori, Samoan, Tongan, Korean, Hindi and Chinese, as well as a New Zealand sign language video.

Feedback form

A feedback form setting out the consultation questions for the 10-year Budget.

Translated into at least six languages (Te Reo Māori, Samoan, Tongan, Korean, Hindi and Chinese), and New Zealand sign language.

Questions will be pre-tested with members of the public to ensure clarity.

Supporting Information

The detailed and specific information, including the relevant strategies, policies, detailed service level and budget information that supports the content of the Consultation Document and provides the basis for the preparation of the final 10-year Budget.

 

23.     To support Aucklanders to be able to provide feedback in a way that suits them best, all information will be provided online and in hard copy. Hard copies will be available at all libraries, service centres and local board offices as well as at events.

24.     All consultation material will also be available online at www.akhaveyoursay.nz which is the Have Your Say (HYS) hub for the Auckland Council. People will be able to read through all the reference information before providing their feedback in an online form. The online forms will also be available for submission in translated languages.

Feedback channels

25.     Aucklanders can submit their feedback in several ways:

·   written feedback received through the council’s feedback form (online and hard copy), emails, letters etc.

·   spoken interaction (verbal feedback) at virtual and face to face events

·   telephone interviews for those who prefer a non-digital option of providing verbal feedback.

 


 

 

 

Māori Engagement

26.     Auckland Council has obligations to enable Māori participation in council decision making processes.

27.     The Māori engagement programme includes:

i)       10-year Budget topic and submission-making workshops with mana whenua and mataawaka entities. Technical support will be offered to assist the development of submissions with Māori entities seeking individualised support.

ii)       a Māori HYS meeting with the Governing Body planned during the consultation period to discuss submission priorities and feedback on the proposed 10-year Budget 2024-2034. 

iii)      Māori community engagement through entities and their networks and promotions at key events, i.e. Waitangi Day, encouraging participation and feedback through workshops, key events, online and hard copy submission forms.

iv)      raising awareness through targeted letters to previous submitters who identified as Māori in the previous Annual Budget 2023/2024.

28.     An overview of the Māori engagement approach is provided in Attachment A (Appendix 2, page 17).

Have Your Say (HYS) events

29.     HYS events with communities will be held across the region. Local boards will host many of these and will decide (with councillor input) on the timing and format of events that they believe best suit their community. These events provide an opportunity for the community to have their views on local and regional issues heard by decision makers or staff members acting under delegation to receive feedback.

30.     Webinar information sessions will be available during the consultation period to give the public an opportunity to listen to and ask questions of elected members and/or subject matter experts. These will not be ‘Have Your Say’ events.

31.     Councillors will be provided with an opportunity to attend one of four panel discussions (based on wards) to discuss the budget. These sessions will be recorded and made available for the public to view.

32.     At local events, where possible ward councillors will speak to regional issues and consultation materials and be available to answer any questions about the plan with members of the public.

33.     Local boards will seek feedback specifically on the proposed priorities and preferences for their local board agreements. However, understanding local views on regional issues is also a priority.

34.     In addition to local events, council staff will set up information stalls at several regional events (eg. Polyfest) that cater for a range of communities.

Engaging with diverse communities

35.     Auckland is home to communities diverse in age, gender, sexuality, disability, nationality, religion and culture. Auckland Council is committed to supporting and including voices from Auckland’s diverse communities.

 


 

 

 

36.     According to 2018 Statistics NZ data, Auckland’s main ethnic groups are:

European 53.5 per cent

Māori 11.5 per cent

Pacific Peoples 15.5 per cent

Asian 28.2 per cent

Middle Eastern/Latin American/African 2.3 per cent

Other Ethnicity 1.1 per cent 

37.     Since 2018 (inclusive), between 62 per cent and 76 per cent of all public submissions from individuals received for annual budget or long term plan consultation processes have been from Aucklanders of European ethnicity.  

38.     Auckland’s demographic advisory panel members and a selection of community leaders will form one of the deliberative democracy participatory forums (see Attachment B) to discuss the consultation topics.

39.     In 2018 Auckland Council implemented the Community Engagement Partnership Programme, consisting of partnerships with diverse community organisations to help us reach those communities. These partnerships have increased engagement from key demographic groups including:  

·   Māori 

·   Pacific  

·   Asian communities  

·   Ethnic communities  

·   Young people  

·   Disability communities.  

40.     This programme allows diverse communities to become more engaged in council processes; to feel informed and educated on the consultation topics, and to provide feedback in an environment that meets their various needs.  

41.     Targeted events and forums will be held during the consultation period to reach different demographic groups and communities. Community partners use their expertise, relationships, and networks to lead engagement with their own communities.

42.     Reaching diverse audiences is a focus for the communications strategy. Specific channels including ethnic print, radio and targeted digital will be deployed to prioritise hard-to-reach groups.

43.     Community consultation materials will be provided in multiple languages including New Zealand sign language (NZSL). Webinar recordings will have NZSL interpretation videos and where possible, council run events will be at wheelchair accessible venues.

Social media

44.     Social media channels such as Facebook, Instagram and LinkedIn will be used to promote the consultation. While social media comments will be collected and provided to elected members separately, these comments will not be categorised as formal feedback. Instead, social media users will be directed to the formal feedback channels.


 

 

Communications and engagement budget

45.     The budget to implement the outlined approach is approximately $684,500 which consists of the following four components:

·   Communications and marketing $255,000

·   Engagement $209,500

·   Māori engagement $60,000

·   Processing of feedback $160,000

46.     These costs are estimates only and will be reconciled with actual costs at the end of the consultation process. Processing costs may change depending on the total number of submissions received.   

Tauākī whakaaweawe āhuarangi

Climate impact statement

47.     Digital submissions will be encouraged where possible which will reduce the need for printed materials and waste produced from this process. Online webinars will also be offered for members of the public to discuss key issues with elected members and subject matter experts. These digital options will reduce the need to travel to a specific location to either give feedback or find out more information.

48.     Staff will minimise the number of printed documents (including reference copies of the larger documents) although reordering will be possible. This will minimise wastage and encourage online participation whilst maintaining the opportunity for people to have their say on paper.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

49.     Subject matter experts from across the council are involved in developing the draft 10-year Budget. These experts will analyse the feedback received to produce a summary report for political consideration prior to final decisions being made. Subject matter experts will also be available at events to present information and answer questions from the public and community partners.

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

Local impacts and local board views

50.     Local boards are an integral part of the public consultation approach. A range of locally held Have Your Say (HYS) events (detailed on the council website) have been scheduled across the region to collect feedback on regional and local issues to inform the 10-year Budget 2024-2034. Local boards will approve any recommended local priorities, whilst any regional decisions will be made by the Governing Body.

Tauākī whakaaweawe Māori

Māori impact statement

51.     Resources have been allocated to ensure there is a dedicated approach to engagement with mana whenua and mataawaka Māori communities that builds on the relationships established during previous consultations. An overview of the Māori engagement approach is provided in Attachment A (Appendix 2, page 17).

52.     Reporting on the annual budget will ensure that Māori feedback is clear and distinct from general population feedback.

 


 

 

 

Ngā ritenga ā-pūtea

Financial implications

53.     The proposed Communications and Engagement Plan is to be funded as part of existing operational budgets and has been subject to a cost-effectiveness review.

54.     The total budget for communications and engagement activities is $684,500.

55.     The recommendation is to prioritise this budget to raise awareness and reach more Aucklanders during the consultation phase. Additional communications and closing-the-loop phase will predominantly be through earned media, owned channels and direct email marketing (where no budget is required).

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

56.     For a full list of risks and mitigations, refer to pages 11-13 of Attachment A: Integrated Communications and Engagement Plan Annual Budget 2023/2024.

Ngā koringa ā-muri

Next steps

57.     Consultation is currently planned to take place from midday on 28 February 2024 until 11.59pm 28 March 2024, however this timeframe could be slightly delayed depending on the audit process for the Consultation Document. The processing of feedback and the decision-making approach will occur at the same time as the third-phase communications and engagement step below:

 


 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Integrated Communications and Engagement Plan, 10-year Budget 2024-2034

 

b

Deliberative Democracy Approach Options for LTP

 

     

Ngā kaihaina

Signatories

Authors

Wendy Filip - Principal CCE Specialist

Drew Broadley – Principal Advisor Media Relations

Authorisers

Tim Aitken – General manager Communications and Marketing

Kenneth Aiolupotea - General Manager Democracy and Engagement

Anna Bray - Acting Director - Governance and CCO Partnerships

Peter Gudsell - Group Chief Financial Officer

 

 


Budget Committee

06 December 2023

 

Long-term Plan 2024-2034: Summary of Budget Committee workshops and briefings - 6 December 2023

File No.: CP2023/18202

 

  

 

 

Te take mō te pūrongo

Purpose of the report

1.          To provide a public record of workshops and briefings held by the Budget Committee relating to the 10-year Budget 2024-2034. 

 

Whakarāpopototanga matua

Executive summary

2.       This is a regular information-only report which aims to provide greater visibility of information circulated to the Budget Committee members via memos, briefings and workshops, where no decisions are required.

3.       The following workshops and briefings have taken place for the Budget Committee:

Date

Subject

14.06.23

10-year Budget 2024 – 2034 – Workshop - Briefing on requirements and approach – Attachment A

21.06.23

10-year Budget 2024 – 2034 – Elected Member Facilitated session – Attachment B

28.06.23

10-year Budget 2024 – 2034 – Elected Member Facilitated session – Attachment C

19.07.23

10-year Budget 2024 – 2034 – Elected Member Facilitated session – Attachment D

30.08.23

10-year Budget 2024 – 2034 – Briefing - Process and councils’ legal obligations – Attachment E

30.08.23

10-year Budget 2024 – 2034 – Briefing - Financial context for the LTP 2024-2034 – Attachment F

6.09.23

10-year Budget 2024 – 2034 – Briefing - Climate change and the LTP/ Performance Framework/measures for the LTP – Attachment G

Note: Redactions have been made to this document under section s7(2)(h).

The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

In particular, the workshop material appended is considered material information, as it could affect the decisions of our bondholders. It will be released publicly with our next annual report.

6.09.23

10-year Budget 2024 – 2034 – Briefing - Infrastructure Strategy, Asset Management Introduction – Attachment H

 

13.09.23

10-year Budget 2024 – 2034 – Briefing - Initial response on the funding of economic development (APTR etc) – Attachment I

Note: Redactions have been made to this document under section s7(2)(b)(ii)

The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.

In particular, the workshop material contains commercially sensitive information as redacted.

13.09.23

10-year Budget 2024 – 2034 - Facilitated session - Engagement and Deliberative Democracy – Attachment J

20.09.23

10-year Budget 2024 – 2034 – Briefing - Rates and Fees and Charges – Attachment K

20.09.23

10-year Budget 2024 – 2034 – Briefing - Investment Impact Assessment – initial discussion – Attachment L

27.09.23

10-year Budget 2024 – 2034 – Briefing - LTP 2024-2034 Group cost pressures/ Café-style Q&A first round/ Facilitated discussion – understanding trade-offs and areas for stop/change investigation – Attachment M

Note: Redactions have been made to this document under section s7(2)(b)(ii)

The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.

In particular, the workshop material contains commercially sensitive information as redacted.

4.10.23

10-year Budget 2024 – 2034 – Briefing - Financial strategy, rates and debt – Attachment N

11.10.23

10-year Budget 2024 – 2034 – Briefing - LTP development stocktake – attachment O

11.10.23

10-year Budget 2024 – 2034 – Briefing - Parks and Community Investment Position – update from 2021 Long-term Plan – Attachment P

17.10.23

10-year Budget 2024 – 2034 – Briefing - Long-term Plan discussion with Auckland Transport Board – Attachment Q

18.10.23

10-year Budget 2024 – 2034 – Briefing - Asset optimisation – Attachment R

Note: Redactions have been made to this document under section s7(2)(h).

The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

In particular, the workshop material contains commercially sensitive information as redacted.

18.10.23

10-year Budget 2024 – 2034 – Briefing - Performance measures update – Attachment S

25.10.23

10-year Budget 2024 – 2034 – Briefing - Climate risk and disclosure training – Attachment T

 

25.10.23

10-year Budget 2024 – 2034 – Briefing - Fairer funding for local boards – Attachment U

 

1.11.23

10-year Budget 2024 – 2034 - Briefing - Ports of Auckland financial update CONFIDENTIAL- no attachments/ Framing up investment options and next steps/ Eke Panuku investment options – Attachment V

Note: Redactions have been made to this document. Ports of Auckland financial Update is CONFIDENTIAL under section s7(2)(b)(ii) 

The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information. 

In particular, the workshop material contains Ports of Auckland Commercial Information 

Grounds 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.

 

1.11.23

10-year Budget 2024 – 2034 – Workshop - Tātaki Auckland Unlimited (TAU) – Attachment W

Note: Redactions have been made to this document under section s7(2)(i)

The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

In particular, the workshop material contains commercially sensitive information.

 

8.11.23

10-year Budget 2024 – 2034 – Workshop - Investment options – Auckland Council/ Auckland Council options discussion on community/ Auckland Council options discussion – natural environment and water – Attachment X

 

8.11.23

10-year Budget 2024 – 2034 – Investment options – Auckland Transport – Attachment Y

Note: Redactions have been made to this document under section s7(2)(h)

The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

In particular, the workshop material contains commercially sensitive information as redacted.

9.11.23

CONFIDENTIAL:  10-year Budget 2024 – 2034 – Briefing - Water and the LTP initial briefing (no attachment)

Reason:

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.

Interests:

s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

 

In particular, the workshop material contains sensitive financial information and projections about Watercare that would prejudice our current and future commercial negotiations.

Grounds:

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.

 

 

 

 

13.11.23

CONFIDENTIAL:  10-year Budget 2024 – 2034 – Workshop - Fit For Purpose Tech investment options/ Group shared services options (no attachment)

Reason:

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.

Interests:

7(2)(i)
The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

In particular, the workshop material contains information about our technology investment landscape and options. Withholding this information is necessary so that any future commercial negotiations with technology vendors are not disadvantaged.   

 

Grounds:

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.

 

 

15.11.23

CONFIDENTIAL:  10-year Budget 2024 – 2034 – Briefing – Water and the LTP - detail of investment options (no attachment)

Reason:

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.

Interests:

s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

 

In particular, the workshop material contains sensitive financial information and projections about Watercare that would prejudice our current and future commercial negotiations.

Grounds:

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.

15.11.23

10-year Budget 2024 – 2034 – Workshop - Trade-offs and prioritisations -Attachment Z

21.11.23

10-year Budget 2024 – 2034 – Briefing - Group Climate Risks and Impact Pathways including controls (no attachment)

Reason:

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.

Interests:

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 workshop material contains risks and the impact pathways.

Grounds:

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.

21.11.23

10-year Budget 2024 – 2034 – Briefing - Climate assessment of investment options – Attachment AA

22.11.23

10-year Budget 2024 – 2034 – Workshop - Local Board input into the Mayoral Proposal – Attachment AB

22.11.23

10-year Budget 2024 – 2034 – Workshop - Community/Fairer funding/ Growth and Housing – Attachment AC

22.11.23

10-year Budget 2024 – 2034 – Workshop - Final trade-off discussions – Attachment AD

28.11.23

10-year Budget 2024 – 2034 – Workshop - Co-governance entities presentations (Ngāti Whātua Ōrākei and Te Poari o Kaipātiki ki Kaipara)/ Other Rates and Fees Matters/ Strategic Assets – Consultation (CONFIDENTIAL) – Attachment AE

Note: Redactions have been made to this document. Strategic Assets – Consultation item is CONFIDENTIAL under section s7(2)(h).

Reason:

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.

Interests:

1.          s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

In particular, the workshop material contains information related to the commercial position of other parties that may impact on future negotiations.

Grounds:

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.

29.11.23

10-year Budget 2024 – 2034 – Workshop – Mayoral Proposal – attachment AF

 

4.       This document can be found on the Auckland Council website, at the following link:

http://infocouncil.aucklandcouncil.govt.nz/

at the top left of the page, select meeting/Te hui “Budget Committee” from the drop-down tab and click “View”;

under ‘Attachments’, select either the HTML or PDF version of the document entitled ‘Extra Attachments’.

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

 

Ngā tūtohunga

Recommendation/s

That the Budget Committee:

a)      whiwhi / receive the Summary of Budget Committee workshops and briefings - 6 December 2023.

 


 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Budget Committee:10-year Budget 2024 – 2034 – Workshop - Briefing on requirements and approach, 14 June 2023 (Under Separate Cover)

 

b

Budget Committee:10-year Budget 2024 – 2034 – Elected Member Facilitated session , 21 June 2023 (Under Separate Cover)

 

c

Budget Committee:10-year Budget 2024 – 2034 – Elected Member Facilitated session , 28 June 2023 (Under Separate Cover)

 

d

Budget Committee:10-year Budget 2024 – 2034 – Elected Member Facilitated session, 19 July 2023 (Under Separate Cover)

 

e

Budget Committee:10-year Budget 2024 – 2034 – Briefing - Process and councils’ legal obligations, 30 August 2023 (Under Separate Cover)

 

f

Budget Committee: 10-year Budget 2024 – 2034 – Briefing - Financial context for the LTP 2024-2034, 30 August 2023 (Under Separate Cover)

 

g

Budget Committee:10-year Budget 2024 – 2034 – Briefing - Climate change and the LTP/ Performance Framework/measures for the LTP, 6 September 2023 (Under Separate Cover)

 

h

Budget Committee: 10-year Budget 2024 – 2034 – Briefing - Infrastructure Strategy, Asset Management Introduction. 6 September 2023 (Under Separate Cover)

 

i

Budget Committee: 10-year Budget 2024 – 2034 – Briefing - Initial response on the funding of economic development (APTR etc), 13 September 2023 (Under Separate Cover)

 

j

Budget Committee: 10-year Budget 2024 – 2034 - Facilitated session - Engagement and Deliberative Democracy, 13 September 2023 (Under Separate Cover)

 

k

Budget Committee: 10-year Budget 2024 – 2034 – Briefing - Rates and Fees and Charges, 20 September 2023 (Under Separate Cover)

 

l

Budget Committee: 10-year Budget 2024 – 2034 – Briefing - Investment Impact Assessment – initial discussion, 20 September 2023 (Under Separate Cover)

 

m

Budget Committee: 10-year Budget 2024 – 2034 – Briefing - LTP 2024-2034 Group cost pressures/ Café-style Q&A first round/ Facilitated discussion – understanding trade-offs and areas for stop/change investigation, 27 September 2023 (Under Separate Cover)

 

n

Budget Committee: 10-year Budget 2024 – 2034 – Briefing - Financial strategy, rates and debt, 4 October 2023 (Under Separate Cover)

 

o

Budget Committee: 10-year Budget 2024 – 2034 – Briefing - LTP development stocktake, 11 October 2023 (Under Separate Cover)

 

p

Budget Committee: 10-year Budget 2024 – 2034 – Briefing - Parks and Community Investment Position – update from 2021 Long-term Plan, 11 October 2023 (Under Separate Cover)

 

q

Budget Committee: 10-year Budget 2024 – 2034 – Briefing - Long-term Plan discussion with Auckland Transport Board, 17 October 2023 (Under Separate Cover)

 

r

Budget Committee: 10-year Budget 2024 – 2034 – Briefing - Asset optimisation, 18 October 2023 (Under Separate Cover)

 

s

Budget Committee: 10-year Budget 2024 – 2034 – Briefing - Performance measures update, 18 October 2023 (Under Separate Cover)

 

t

Budget Committee: 10-year Budget 2024 – 2034 – Briefing - Climate risk and disclosure training, 25 October 2023 (Under Separate Cover)

 

u

Budget Committee: 10-year Budget 2024 – 2034 – Briefing - Fairer funding for local boards, 25 October 2023 (Under Separate Cover)

 

v

Budget Committee: 10-year Budget 2024 – 2034 - Briefing - Ports of Auckland financial update CONFIDENTIAL(no attachments)/ Framing up investment options and next steps/ Eke Panuku investment options, 1 November 2023 (Under Separate Cover)

 

w

Budget Committee: 10-year Budget 2024 – 2034 – Workshop - Tātaki Auckland Unlimited (TAU), 1 November 2023 (Under Separate Cover)

 

x

Budget Committee:10-year Budget 2024 – 2034 – Workshop - Investment options – Auckland Council/ Auckland Council options discussion on community/ Auckland Council options discussion – natural environment and water, 8 November 2023 (Under Separate Cover)

 

y

Budget Committee: 10-year Budget 2024 – 2034 – Investment options – Auckland Transport, 8 November 2023 (Under Separate Cover)

 

z

Budget Committee: 10-year Budget 2024 – 2034 – Workshop - Trade-offs and prioritisations, 15 November 2023 (Under Separate Cover)

 

aa

Budget Committee: 10-year Budget 2024 – 2034 – Briefing - Climate assessment of investment options, 21 November 2023 (Under Separate Cover)

 

ab

Budget Committee: 10-year Budget 2024 – 2034 – Workshop - Local Board input into the Mayoral Proposal, 22 November 2023 (Under Separate Cover)

 

ac

Budget Committee: 10-year Budget 2024 – 2034 – Workshop - Community/Fairer funding/ Growth and Housing, 22 November 2023 (Under Separate Cover)

 

ad

Budget Committe: 10-year Budget 2024 – 2034 – Workshop - Final trade-off discussions, 22 November 2023 (Under Separate Cover)

 

ae

Budget Commmittee: 10-year Budget 2024 – 2034 – Workshop - Co-governance entities presentations (Ngāti Whātua Ōrākei and Te Poari o Kaipātiki ki Kaipara)/ Other Rates and Fees Matters/ Strategic Assets – Consultation (CONFIDENTIAL), 28 November 2023 (Under Separate Cover)

 

af

Budget Committee: 10-year Budget 2024 – 2034 – Workshop – Mayoral Proposal, 29 November 2023 (Under Separate Cover)

 

     

Ngā kaihaina

Signatories

Author

Sonja Tomovska - Kaitohutohu Mana Whakahaere Matua / Senior Governance Advisor

Authoriser

Peter Gudsell - Group Chief Financial Officer

 



[1] Frequent Transport Network – services that operate at least every 15 mins, 7am-7pm, 7 days a week