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Resolution
number TICCC/2024/146
MOVED by Deputy
Chairperson C Fletcher, seconded by Deputy Mayor D Simpson:
That
the Transport, Resilience and
Infrastructure Committee:
a) tuhi
ā-taipitopito / note that based on the latest forecasts, the number of
Category 3 properties eligible for the Voluntary Buy-out Support Scheme has
increased from 900 to between 1205 and 1264, increasing the estimated total
cost of Category 3 buy-outs by up to an estimated $387.6 million (shared
50:50 with the Crown).
b) tuhi
ā-taipitopito / note that updated forecasts will be prepared once
further categorisation work has been completed by early 2025.
c) ohia
/ endorse, in principle, a request to the Crown to consider further funding
for Category 3 buy-outs, in accordance with section 6.1b of the Auckland
Crown Funding Agreement, or to consider other amendments to the Agreement to
enable Auckland Council to access the full allocation of Crown funding
without requiring the council to incur further debt or cost to ratepayers.
d) ohia
/ endorse, in principle, if the request above is not successful, a request to
the Crown to move up to around $200 million of Crown funding from the
allocation for Category 2 risk mitigation projects to the allocation for
Category 3 voluntary buy-outs (with this maximum figure to be confirmed under
delegation by early 2025), to fund the Crown’s share of the additional
expected Category 3 buy-out costs.
e) ohia
/ endorse, in principle, providing for the council’s share of the
additional Category 3 buy-out costs in FY25 and FY26, noting that this is
expected to:
i) Utilise
all of the remaining Category 2 council funding allocated under the Auckland
Crown Funding Agreement for the ‘Tranche 2’ risk mitigation
programme
ii) Require
additional council borrowing as the risk mitigation budget was phased across
10 years in the long-term plan
iii) Require
additional investment of up to $35m for Category 3 buy-outs,
iv) Drive
other additional costs in terms of house removal costs, ongoing maintenance,
and interest.
f) whakaae
/ agree to delegate to the Chief Executive and the Storm Recovery Political
Advisory Group approval of the final details of the request to central
government based on the latest forecasts.
g) tuhi
ā-taipitopito / note that the risk of impact to the Annual Plan
2025/2026 has been highlighted through staff advice and the Mayoral Proposal
and that updated forecasts will inform final budget decisions.
h) tuhi
ā-taipitopito / note that, as a consequence, depending on the volume of
additional Category 3 properties purchased, Crown funding available for
Category 2 risk mitigation projects (Tranche 2) is expected to decrease to
between $66.5m and $97m, and that, under the current Funding Agreement terms,
this funding can only be accessed if the council invests (or reprioritises)
an additional $40.8m to $59.4m (reflecting the 62:38 Crown/council cost share
arrangement for this allocation), noting that the 62% share is not guaranteed
as it depends on the total investment required and the remaining funds
available.
i) ohia
/ endorse, in principle, agreeing to make additional capital funding
commitments to access the remaining Crown funding for Tranche 2 flood risk
mitigation projects, starting in FY27, and that this funding should be offset
by reprioritisation of other Healthy Waters capex and/or by revenue from the
disposal of Category 3 land with this funding mix to be confirmed through
future annual and long-term plan processes.
j) tuhi
ā-taipitopito / note that the scope of the co-funded Tranche 2 flood
risk mitigation programme will need to be reduced to make optimal use of the
available funding, while ensuring that the projects still deliver the
required benefits. The proposed additional category buyouts will also provide
benefits to flood risk mitigation locations, in themselves, and provide land
required for any future physical works.
k) tono
/ request staff to identify opportunities for future revenue from the
disposal of Category 3 land in the future land use programme.
l) tono
/ request staff to report back to the Transport, Resilience and
Infrastructure Committee in February 2025 on options for cost minimisation
and revenue maximisation
CARRIED
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