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For clarity,
the decision reads as follows:
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)
c) agree
to consult on 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 either
A)
any operating lease of the Port of
Auckland’s operations if council proceeds with that option,
or
B)
dividends and/or capital returns from Port of
Auckland, where council retains outright ownership.
d) 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 two to five (2-5) years.
e) agree
to consult on the following two options for port operations, in an
equal and fair manner, and further informed by contestable advice currently
being sought;
i) Continued
public ownership of Port operations – Port of Auckland Limited
continues to own and operate the port land and operations, implementing their
turnaround plan to deliver improved profitability and more dividends to
council, including an option of returning Bledisloe Terminal to council
within 15 years
or
ii) Lease
Port operations – council leases 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, with council forgoing future dividends and retaining underlying
ownership of land and assets.
f) 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 $32.6 million 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 $779 million 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
g) 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 the rate of 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
h) 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.
i) 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.
iii) changing
the operational management of North Harbour Stadium to ensure greater use by
the community
j) 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.
k) 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
l) 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.
m) 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
n) 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.
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