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Budget Committee
19 February 2025
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Annual Plan
2025-2026: Adoption of consultation materials
File No.: CP2025/00356
Te take mō te
pūrongo
Purpose of the report
1. To seek adoption of the Consultation Document and Supporting
Information for the Annual Budget 2025/2026.
Whakarāpopototanga matua
Executive summary
2. Under
the Local Government Act 2002, all councils are required to adopt an annual
plan for each financial year (except once every three years when the long-term
plan acts as the annual plan).
3. The
Annual Plan for 2025/2026 (this annual plan) represents year two of the
Long-term Plan 2024-2034 (the LTP).
4. The
process to develop this annual plan began in September 2024 with two
facilitated sessions with Governing Body members. The outcomes from these
sessions were captured in the Mayoral and Councillor Direction to Council
Group document.
5. On
4 December 2024, the Budget Committee received and considered the Mayoral
Proposal for the Annual Plan 2025/2026, and subsequently agreed items for
consultation – see resolutions BCCCC/2024/14.
6. The
decisions made at the 4 December Budget Committee provided the direction for
staff to produce the Consultation Document and Supporting Information
(together, the consultation material) which is now presented for adoption.
Draft consultation material was provided to Governing Body members ahead of a
drop-in session on 11 February 2025.
7. In
December 2024, all local boards held workshops and meetings to finalise their
local consultation matters and key priorities for inclusion in the consultation
material for adoption.
8. The
Tūpuna Maunga Operational Plan must be prepared and adopted concurrently
with the council’s annual plan and must be included in summary form in
the annual plan consultation documentation. The Draft Tūpuna Maunga
Operational Plan 2025/2026 was approved by the Tūpuna Maunga Authority 9
December 2024 and adopted by the Governing Body on 12 December 2024.
9. The
consultation material also seeks public views on a bed night visitor levy to
fund major events and destination marketing activity, subject to necessary
legislation being enacted. The material notes that a levy of 2.5 per cent
to 3 per cent paid by those in short-stay accommodation would address the
budget gap of $7 million for the 2025/2026 financial year and raise
approximately $27 million each year to fund destination management, marketing,
and major events in Auckland.
10. In December
2024, the Budget Committee agreed that the council consult on the expansion of
the Glen Eden Business Improvement District (GEBA) and the Business Improvement
District (BID) targeted rate as part of the Annual Plan 2025/2026. However, the
GEBA has since decided to delay the ballot. Officers have therefore not
included this proposal in the consultation material. It is likely that
the expansion will be consulted on as part of the council’s Annual Plan
2026/2027.
Ngā tūtohunga
Recommendation/s
That the Budget Committee:
a) whai
/ adopt the Supporting Information for the Annual Plan 2025/2026
b) whai
/ adopt the Consultation Document for the Annual Plan 2025/2026
c) whakaae
/ agree to delegate responsibility to the chair of the Budget Committee, and
the group chief financial officer to approve any minor or technical edits
required to the Consultation Document and Supporting Information for the Annual
Plan 2025/2026 in order to finalise the documents for uploading online and
physical distribution.
Horopaki
Context
11. The Local
Government Act 2002 requires the council to prepare and adopt an annual plan
for each financial year, except once every three years
when the long-term plan acts as the annual plan.
12. This annual
plan represents year two of the recently adopted LTP and it outlines the
budgets, priorities and funding envelopes for the
2025/2026 financial year. Any significant or material changes to the budget or
service levels from that set out in the LTP require consultation.
13. Auckland
Council is also required to include local board agreements and the Tūpuna
Maunga Authority Operational Plan in summary form in its annual plan. The
proposed content of local board agreements and the
summary of the Tūpuna Maunga Authority Operational Plan must be included
in annual plan consultation material.
14. The
consultation material seeks public views on a bed night
visitor levy to fund major events and destination marketing activity, subject
to necessary legislation being enacted. The material
notes that a visitor levy of 2.5 per cent to 3 per cent on short-stay
accommodation would address the $7 million budget shortfall for funding destination management, marketing, and major events in Auckland, for
the 2025/2026 financial year.
Tātaritanga me ngā
tohutohu
Analysis and advice
Developing the annual plan
15. The process to develop council’s Annual Plan 2025/2026 began
with the mayor’s direction setting which was discussed at two facilitated
sessions with Governing Body members in September 2024. The output of these
sessions was outlined in the Mayoral and Councillor Direction to Council
Group document.
16. Briefings
and workshops were held with the Budget Committee between September and
December 2024. Chairs and representatives from each local board were invited to
attend all workshops and briefings on the annual plan during this time.
17. On
20 November 2024, the Budget Committee received and workshopped the Mayoral
Proposal for consultation on the annual plan. On 4 December 2024, the Budget
Committee considered this proposal and agreed the items for consultation in the
Annual Plan 2025/2026.
18. The
decisions made by the Budget Committee on 4 December 2024 have formed the basis
for the drafting of consultation material, with the following topics established as key areas of focus for the
Annual Plan 2025/2026:
· Funding
major events, destination marketing and visitor attraction
· Implementing
fairer funding for local boards
· Budget
package
· Financial
policy.
Developing local board agreements and consulting on local issues
19. Each
year a local board agreement is developed for each of the 21 local boards that
sets out priorities, budgets and intended levels of service for local
activities, and the capital and operating expenditure required to fund these
activities. Local board agreements are agreed between each local board and the
Budget Committee as part of the annual plan or LTP process.
20. For
this annual plan, local boards have prioritised their activities and services
based on the new fairer funding approach which was approved by the Governing
Body in the Long-term Plan 2024-2034.
Developing the Draft Tῡpuna Maunga Operational Plan
2025/2026
21. Each
year the council and the Tūpuna Maunga Authority must agree a Tῡpuna Maunga Operational Plan to
provide a framework in which the council, under direction of the Tῡpuna Maunga Authority, will carry out
its functions for the routine management of the maunga and administered lands
for that financial year. The Tūpuna Maunga Operational Plan must be
prepared and adopted concurrently with the council’s annual plan and must
be included in summary form in the annual plan consultation documentation.
22. The
Draft Tūpuna Maunga Operational Plan 2025/2026 has been prepared and was
approved by the Tūpuna Maunga Authority in December 2024, which is
consistent with year two of the Long-term plan 2024-2034. On 12 December 2024,
the Governing Body agreed the Draft Tūpuna Maunga Operational Plan
2025/2026 and a summary of the draft plan (for inclusion in the consultation
material for the Annual Plan 2025-2026). A summary of
the Draft Tūpuna Maunga Operational Plan is included in the Supporting
Information.
Funding major events, destination
marketing and visitor attraction
23. Auckland
Council has long advocated to central government for a legislative change to
enable a bed night visitor levy on short-stay
accommodation like hotels, motels and bnbs to fund major events, destination
management and marketing activities.
24. The
introduction of a levy of 2.5 per cent to 3 per cent would raise around $27
million each year for Auckland to deliver a full
destination management and major event programme which are vital to developing
Auckland’s economy.
25. As signalled
in the LTP, without a bed night visitor levy the council group would have a
$7 million budget shortfall for funding major
events that are expected to attract visitor expenditure for the 2025/2026
financial year.
26. While
central government has indicated it might consider introducing legislation that
would enable a bed night levy, it is uncertain whether this will be implemented
in this Annual Plan 2025/2026. If a levy is not enabled and introduced before
the 2025/2026 financial year, then the council will need to consider a range of
options via this annual plan to address the budget gap.
Delay in proposed expansion to the Glen Eden Business
Improvement District (BID)
27. In
December 2024, the Budget Committee agreed that the council consult on the
expansion of the Glen Eden BID and BID targeted rate as part of the Annual Plan
2025/2026, following proposal by the Glen Eden Business Association (GEBA) to
expand the boundary of the BID to cover 47 additional business properties. A
ballot on the proposed expansion was scheduled for March 2025. The GEBA has
since decided to delay the ballot, due to ongoing engagement work indicating
insufficient support for the proposal to guarantee a successful ballot in
March. This means a ballot on the proposed Glen Eden BID expansion will not
occur in time to inform decision making for Annual Plan 2025/2026. Officers
have therefore excluded the proposal from the consultation material for
adoption. It is likely that the expansion will be consulted on as part of the
council’s Annual Plan 2026/2027.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
28. The Annual
Plan 2025/2026 includes climate related action across the seven areas of
council activities and investments such as climate change, storm recovery and
resilience. It outlines how council will improve its
response to reducing its council’s contribution to climate change and
addressing its impact.
29. The funding
for these climate action initiatives comes from various targeted rates,
including the Water Quality Targeted Rate (WQTR), Climate Action Transport
Targeted Rate (CATTR) and the Natural Environment Targeted Rate (NETR).
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
30. The
annual plan will include budgets at a consolidated group level.
31. Consultation
items and updates to budgets to reflect decisions and new information reflect
input from across the group.
32. Further
information and input will be sought from across the council group as the
Annual Plan 2025/2026 is finalised following public consultation.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
33. Local
board chairs and representatives were invited to all annual plan workshops with
the Budget Committee between September and December 2024.
34. Local
boards approved their local content for inclusion in the consultation material
in December 2024. This included the proposed key priorities for each local
board for 2025/2026, to be included in each local board agreement.
35. Local
boards will continue to have input on the Annual Plan 2025/2026 following
consultation and prior to any final decisions made by Governing Body, including
as part of decision-making on each local board agreement.
Tauākī whakaaweawe
Māori
Māori impact statement
36. Targeted
engagement with mana whenua and mataawaka is being planned for the consultation
period, including pre-consultation hui held in mid-February 2024.
37. For the
Annual Plan 2025/2026, Finance has worked with Ngā Mātārae to
identify key areas of the consultation material where greater inclusion of Te
Reo Māori would enhance accessibility and engagement with Māori and
further our use of Te Reo Māori as an organisation.
38. Reporting on
the Annual Plan 2025/2026 submissions will take a split view approach to ensure
that feedback from Māori entities is clear and distinct from general
population feedback.
Ngā ritenga
ā-pūtea
Financial implications
39. The
financial implications of proposed budget changes are set out in the
consultation material recommended for adoption.
40. The
annual plan is a statutory plan which must be completed annually. The council
budget provides for the resourcing to deliver this project.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
41. Adopting the
Annual Plan 2025/2026 by 30 June 2025 will enable rates to be set for the
2025/2026 financial year. Not completing the Annual Plan 2025/2026 in
accordance with statutory requirements could impact on
the council’s revenue, and its ability to continue to deliver the
services and projects that Auckland needs.
42. The council
is currently undertaking its three-yearly revaluation of properties in
accordance with the Rating Valuations Act 1998. The outcome and timing of the revaluation may impact rates setting
and assessment for the 2025/2026 financial year. Rates analysis within the
consultation material is based on 2021 values, with appropriate caveats
included where applicable.
43. Another risk
is compliance with the requirements of the Local Government Act 2002. The legal
team have reviewed the consultation material for legislative compliance, prior
to the adoption of consultation material by the Budget Committee on 19 February
2025. Approval of the Consultation Document and Supporting Information
will enable the timetable for consultation and subsequent decision-making to be
met.
Ngā koringa ā-muri
Next steps
44. Following
decisions today, all consultation material will be finalised for print and
distributed to libraries, service centres, local board offices and made
available online in time for the start of the consultation process on 28
February 2025.
45. The key steps
for finalising the Annual Plan 2025/2026 are:
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Annual Budget Timeline
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2025
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Public consultation period
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28
February – 28 March
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Budget Committee workshop – regional feedback is
presented including feedback from Advisory Panels
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30
April
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Budget Committee workshop – local boards invited to
provide feedback on regional topics
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14
May
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Budget Committee workshop – Mayoral Proposal
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21
May
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Budget Committee/Governing Body meetings – decisions on
annual plan content and Mayoral proposal
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28
May
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Local boards - adopt local board agreements
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9
– 13 June
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Governing Body workshop/drop-in session – final annual
plan documents
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18
June
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Governing Body meeting – adoption of final Annual Plan
2025/2026
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26
June
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Ngā tāpirihanga
Attachments
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No.
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Title
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Page
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a⇨
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Consultation Document
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b⇨
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Supporting Information
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Ngā kaihaina
Signatories
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Authors
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Hanna Woon – Programme Manager
Tracey Wisnewski - Project Manager, Financial Strategy
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Authorisers
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Michael Burns - General Manager Financial Strategy
Ross Tucker - Group Chief Financial Officer
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