Annual Budget 2016/2017 Volume 1: Our plan for 2016/2017

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Annual Budget 2016/2017

Volume 1: Our plan for 2016/2017

He Mihi

Tērā tō waka te hoea ake e koe i te moana o te Waitematā kia ū mai rā ki te ākau i Ōkahu. Ki reira, ka mihi ake ai ki ngā maunga here kōrero,

ki ngā pari whakarongo tai, ki ngā awa tuku kiri o ōna manawhenua, ōna mana ā-iwi taketake mai, tauiwi atu

E koro mā, e kui mā i te wāhi ngaro, ko Tāmaki Makaurau tā koutou i whakarere iho ai, ki ngā reanga whakaheke, ki ngā uri whakatupu - ki tō iti, ki tō rahi.

Tāmaki - makau a te rau, murau a te tini, wenerau a te mano. Kāhore tō rite i te ao.

Tō ahureinga titi rawa ki ngā pūmanawa o mātou kua whakakāinga ki roto i a koe.

Kua noho mai koe hei toka herenga i ō mātou manako katoa.

Kua ūhia nei mātou e koe ki te korowai o tō atawhai, ki te āhuru o tō awhi, ki te kuku rawa o tō manawa.

He mea tūturu tonu whakairihia, hei tāhuhu mō te rangi e tū iho nei, hei whāriki mō te papa e takoto ake nei.

Kia kōpakina mātou e koe ki raro i te whakamarumaru o āu manaakitanga.

E te marae whakatutū puehu o te mano whāioio, e rokohanga nei i ngā muna, te huna tonu i ō whāruarua i ngā hua e taea te hauhake i ō māra kai, i ngā rawa e āhei te kekerihia i ō pūkoro. Te mihia nei koe e mātou.

Tāmaki Makaurau, ko koe me tō kotahi i te ao nei, nōku te māringanui kia mōhio ki a koe, kia miria e te kakara o te hau pūangi e kawe nei i ō rongo.

Ka whītiki nei au i taku hope ki ngā pepehā o onamata, ki ōku tūmanako mō āpōpō me ōku whakaritenga kua tutuki mō te rā nei.

Tāmaki Makaurau, tukuna tō wairua kia rere

 

Let your canoe carry you across the waters of the Waitematā until you make landfall at Ōkahu.

There, to greet the mountains, repository of all that has been said of this place, there to greet the cliffs that have heard the ebb and flow of the tides of time, and the rivers that cleansed the forebears of all who came those born of this land and the newcomers among us all.

To all who have passed into realms unseen, Auckland is the legacy you leave to those who follow, your descendants - the least, yet, greatest part of you all. Auckland - beloved of hundreds, famed among the multitude, envy of thousands. You are unique in the world.

Your beauty is infused in the hearts and minds of those of us who call you home.

You remain the rock upon which our dreams are built.

You have cloaked us in your care, taken us into the safety of your embrace, to the very soul of your existence.

It is only right that you are held in high esteem, the solid ground on which all can stand. You bestow your benevolence on us all.

The hive of industry you have become motivates many to delve the undiscovered secrets of your realm, the fruits that can still be harvested from your food stores and the resources that lie fallow in your fields.

We thank you.

Auckland you stand alone in the world, it is my privilege to know you, to be brushed by the gentle breeze that carries the fragrance of all that is you.

And so I gird myself with the promises of yesteryear, my hopes for tomorrow and my plans for today.

 

Message from the Mayor

As every Aucklander knows, this glorious place in which we live continues to go from strength to strength and a big part of that is the phenomenal growth we are experiencing. Auckland is projected to add up to another million people in the next 30 years and we must be able to accommodate that growth.  Auckland's future depends on us doing just that.

The challenges over the next three decades include accommodating those people, providing enough additional business land, creating 300,000 new jobs, tackling our transport issues and meeting the demands of a growing tourism industry.

More people means more services and infrastructure and some might think that means a big spend.  Yes, investment is critical but as you will see this year's Annual Plan is about keeping the ship steady. 

We need, and are taking, a constant, stable approach.  We haven't made any big changes in this plan. Indeed we've worked hard to reduce the rates increase (now just 2.4 per cent) while still delivering the $1.9 billion of investment planned. 

This Annual Plan focuses on financial stability while delivering the decisions made in our Long-term Plan 2015-2025.  Our capital programme will allow us to continue to address the challenges of growth and improve the city's transport infrastructure.

Already, we are making good progress with several transformational projects underway.  The most significant is the City Rail Link or CRL. Increased rail patronage will create more space on our roads for vehicles that need to use them which is good news for both commuters and businesses.  Aucklanders will experience faster train travelling times and this vital transport infrastructure will make Auckland an even better place to live at the same time as boosting the city's economy.

The City Rail Link is not just a transport story though. It's also about growing business and creating jobs as well as promoting environmental sustainability. The economic growth that will result will occur well beyond the central city. Alongside the CRL there is more than $2 billion of city centre private enterprise development projects including a number of high rises which will provide accommodation, offices and retail.

I want to finish by saying a huge thank you to all of the people who took part in our Annual Plan consultation this year.  Your views on what we should do with the Uniform Annual General Charge, the Interim Transport Levy, farm and lifestyle rates and Māori land rates have been a key part of our decision making. We will continue to realise the efficiencies promised by a united Auckland and we are indeed living in exciting times.

Len Brown

MAYOR OF AUCKLAND

 

How this Annual Budget 2016/2017 is arranged

This is Auckland Council's plan for delivering services and building infrastructure during the 2016/2017 financial year, the second year of the council's 10-year budget (Long-term Plan 2015-2025 or LTP).

This plan was adopted by the governing body on 30 June 2016 following public consultation in February and March 2016.

An annual plan is produced for each year in between long-term plans, which are prepared every three years.  It provides an opportunity to refresh the information for the coming year and consult with the community on any changes that are proposed. 

Finding your way around the volumes

Volume 1: Our plan for 2016/2017

Part 1 provides context and background to the plan including a message from the Mayor. It outlines what we will be doing in 2016/2017 to work towards the goals of the Auckland Plan.

Part 2 outlines the activities and services of Auckland Council.

Part 3 contains our financial overview, prospective financial statements for 2016/2017, prospective funding impact statement and other key financial information.

Part 4 contains the summary of the Tūpuna Maunga Authority Operational Plan 2016/2017.

Part 5 contains the appendices and presents the structure of and contact information for the council, a glossary of terms and key word index.

Volume 2: Local Board information and agreements

Part 1 provides information on local boards and a summary of planned expenditure for 2016/2017.

Part 2 contains specific information for each of the 21 local boards, including a local board agreement (outlining local activity initiatives and budgets for 2016/2017), and an introductory section that provides context for each agreement.

Part 3 contains the Allocation of Decision-Making policy for non-regulatory activities.

Part 4 contains the appendices which includes a glossary of terms and key word index.

 

Contents

Message from the Mayor

Part 1: Our plan 2016/2017

Part 2: Our activities

Part 3: Our Finances

Part 4: Summary of the Tūpuna Maunga Operational Plan 2016/2017

Part 5: Appendices

 

Part 1: Our plan for 2016/2017

Responding to Auckland's growth

We need to make substantial investments in infrastructure to respond to Auckland's rapidly growing population. Combined with the additional cost of providing day-to-day services for more people, rising asset ownership pressures are increasing the council's total operating costs faster than the rate of inflation. While efficiency gains and higher growth-related revenue are helping, rates increases higher than the rate of inflation are necessary for Auckland to continue to invest in response to this rapid population growth.

For 2016/2017, we will invest $1.4 billion in new assets as well as $570 million to look after existing ones. To pay for this, general rates will rise by an overall average of 2.4 per cent (an average increase of $1.13 per week for residential properties) and council debt is projected to increase from $8.05 billion to $8.8 billion.  This level of debt is consistent with the council's AA credit rating and the council's target of interest costs not exceeding 12 per cent of revenue, however there is minimal additional debt headroom.

Figure 1 illustrates the effect that Auckland's growth is having on our finances.

Further information on our level of investment and how we are managing our finances is set out in Part 3 of this plan.

Figure 1: Understanding Auckland's growth and how we're going to pay for it



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Figure 1 text description

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What Auckland Council delivers

While our primary focus is on responding to Auckland's rapid population growth, we are also focused on providing all of the things that make Auckland a great place to live.  In this document, we have organised these things into seven areas of spend.

Transport aim to transform Auckland by moving to outstanding public transport within one network. This can be achieved by improving the speed, accessibility, frequency, affordability, reliability and attractiveness of public transport.

Parks, community and lifestyle provide a range of facilities, services, and events that help people to be healthy and have fun. These encompass sports, arts, culture, recreation and leisure experiences, for example by providing a wide range of libraries, pools, fields, parks and community centres.

Environmental management and regulation provide many services that support Auckland's environments to be safe, sustainable and to enable thriving communities. We work alongside iwi and community partners to restore and enhance our natural environment. We also collect rubbish and recycling and minimise the risk that our homes and businesses flood when it rains.

Auckland development aims to create a city with great neighbourhoods, centres, parks and public spaces that are loved by Aucklanders. We aim to provide choices, reflect Auckland's Māori identity as our point of difference in the world and connect people to places and to each other.

Economic and cultural development aim to raise living standards through attracting investment and visitors, delivering and attracting events, progressing training and innovation programmes, and providing major cultural and sporting facilities.

Governance and support provide a variety of administrative, management and support functions that are necessary to keep Auckland running. This includes providing funding support for external organisations such as the Auckland War Memorial Museum and MOTAT.

Water supply and wastewater every day delivers 326 million litres of safe, clean and reliable drinking water to Aucklanders and collect, treat and discharge 400 million litres of wastewater.

Further information on each area of spend is set out in Part 2 of this plan.

Figure 2 lists some of the specific investment highlights across Auckland for 2016/2017.  For further information on our projects please visit our website aucklandcouncil.govt.nz.

Part 2 of this document provides some further information about some of the key projects we will be progressing across the region in 2016/2017.

Figure 2: Auckland Council delivering in 2016/2017



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Figure 2 text description

The 2016/2017 programme continues to address the challenges of growth and improving our transport infrastructure. Aucklanders will continue to see progress as we deliver projects such as:

North Auckland
West Auckland
CBD/East Auckland
South Auckland
Region-wide

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Your rates

Your rates pay for things that make Auckland such a great place to live, such as parks, rubbish and recycling collections, libraries, public transport and investment in community facilities and infrastructure.

Over the past five years Auckland Council has been working to create a fair and consistent rating system for all properties, no matter where they are in Auckland. The rating process was complicated because we had to transition the rating systems from the different legacy councils into one, while also dealing with large movements in property values. What this meant was that while the average rates increases have been relatively low, many individual ratepayers have faced large fluctuations to bring them into line with the rest of the region.

We have reviewed our rating policy for 2016/2017 to see if there is a fairer way to spread rates across individual properties.  However, following consultation with Aucklanders we decided to make only minimal changes. Because the transition to one rating system is complete and because there is no property revaluation this year, this decision will result in almost all households and businesses having the same percentage rates increase.  Specifically, the 2.4 per cent general rates increase for 2016/2017 will mean all households will have a 2.5 per cent overall average rates increase and all businesses will have a 1.9 per cent increase.

Key rates policy settings for 2016/2017

Key rates policy changes this year

Further information on your rates is set out in Part 3 of this plan.

 

How we will achieve better outcomes with and for Māori

Auckland Council has an important role in enabling mana whenua and our Māori communities to fully contribute to and benefit from Auckland becoming the world's most liveable city - te pai me te whai rawa o Tāmaki.

The Auckland Council group has committed to transforming the way it plans, develops policy, prioritises, invests and delivers with and for Māori. The fundamental building blocks of council's obligations and overall commitments to Māori are expressed in:

The council has established a top-down approach called Te Toa Takitini  to better enable the council group to identify, invest, and track progress on activities that deliver on the Auckland Plan, transform the organisation and deliver Aucklanders great value for money. The name Te Toa Takitini is a call to action for the entire council group and draws from the whakatauki (proverb):

Ehara taku toa i te toa takitahi, engari he toa takitini

Success is not determined by me alone, it is the sum of the contribution of many

Te Toa Takitini oversees five programmes of action:

Key highlights for each area of spend are including in Part 2 of this document.

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Part 2: Our activities

Area of spend

Capital spend 2016/2017

$1.945bn

Operating spend 2016/2017

$3.668bn

How operating costs are funded

Rates per $100

What will be delivered

Key performance indicators

Transport

$765 million

$1253 million

Rates: 55 %

Other, including fees and charges: 45 %

$38

  • building and maintaining all local and main arterial roads
  • footpaths, cycle paths, bridges, carparks, culverts etc.
  • providing public transport services - trains, buses, ferries
  • invest in rail, bus stations and ferry infrastructure
  • transport safety, education and enforcement
  • continued work on key infrastructure projects, including City Rail Link and AMETI
  • year 2 of the accelerated transport programme, which included an additional $523m capital expenditure over three years funded by the interim transport levy.
  • increase public transport boardings to over 88 million trips, improve punctuality to 93% and customer satisfaction to 84%
  • maintain optimum travel time on at least 85% of key freight routes
  • grow annual number of cycling trips on Auckland Transport's designated routes to 1.2 million per year.

Parks, Community and Lifestyle

$254 million

$570 million

Rates: 85%

Other, including fees and charges: 15%

$27

  • regional and local parks
  • libraries, community facilities, community services and grants
  • arts and cultural facilities, activities and community events
  • swimming pools and recreation centres.
  • maintain and increase overall service levels for our local and regional parks to continue to enjoy high visitor numbers
  • significant investment in sportsfields to improve satisfaction of the provision and quality to 75%
  • grow over 60,000 native plants in the Botanic gardens for revegatation programmes
  • 20 sites of significance on Tupuna Maunga with mitigation measures to improve or maintain their condition.

Environmental Management and Regulation

$117 million

$470 million

Rates: 58%

Other, including fees and charges: 42%

$16

  • building and maintaining the stormwater network
  • improving the quality of water in streams and harbours
  • waste collection, including recycling and reducing waste to landfill
  • protecting biodiversity
  • undertaking regulatory activities such as resource and building consents, dog control, food licensing and swimming pool inspections.
  • ensure no more than 1 in 1000 properties connected to our stormwater system is flooded per year
  • have three resource recovery facilities operational
  • establish 8 hectares of new forest or wetland habitats per year
  • process 100% of building and non-notified resource consents within 20 working days
  • 30% of catchments have key source of contaminants identified and mitigated.

Auckland Development

$205 million

$201 million

Rates: 63%

Other, including fees and charges: 37%

$8

  • Unitary Plan and local plans, policy development, waterfront development, town centre development, property management and development
  • enabling housing development through existing and future spatial priority areas.
  • creating a vibrant Waterfront that attracts over 73% of Aucklanders to the Waterfront each year
  • increase the proportion of residents who are proud of the way their local area looks and feels from 64% in 2010 to 90% in 2040.

Economic and Cultural Development

$40 million

$193 million

Rates: 58%

Other, including fees and charges: 42%

$6

  • managing major attractions, venues and sports stadiums
  • delivery of World Masters Games 2017
  • an increased focus on marketing Auckland as a leisure destination.
  • major events contributing $86m in 2016/17 towards the regional GDP
  • grow visitors to Auckland Zoo and Art Gallery to 1.17 million visitors per year and maintain a 90% customer satisfaction level
  • host 825 public art performances through Auckland Live
  • host 775 commercial events and 970 community events at our stadiums.

Governance and Support

$238 million

$449 million

Rates: 22%

Other, including fees and charges: 78%

$5

  • Local Body support and meeting processes
  • corporate functions such as finance, legal, communications and human resources
  • Auckland Council Investments Ltd, including Ports of Auckland
  • grants to Auckland War Memorial Museum, MoTAT and the Auckland Regional Facilities and Amenities.
  • reducing corporate costs through an ongoing efficiency programme to achieve annual savings of $243 million by end of 2017
  • deliver a return on equity of 7.4% on major investments.

Water Supply and Wastewater

$326 million

$532 million

Rates: 0%

Other, including fees and charges: 100%

$0

  • building and maintaining the network of pipes, dams, treatment plants, pumps required to provide a high standard of drinking water and treating wastewater
  • continue to work on the delivery of major projects such as the Central Interceptor wastewater project.
  • maintain 100% compliance with Drinking-water Standards for New Zealand
  • less than 10 wastewater system overflows per 1000 connections in dry weather conditions.

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2.1 Transport

We aim to transform Auckland by moving to outstanding public transport within one network. This can be achieved by improving the speed, accessibility, frequency, affordability, reliability and attractiveness of public transport.

We plan to improve the transport network by investing in our roads and footpaths, and by providing the necessary infrastructure to make walking and cycling real options for more Aucklanders.

Key priorities for 2016/2017 include:

Key highlights and priorities for the Annual Budget 2016/2017

City Rail Link

Work has now begun on the City Rail Link (CRL), which will include a new underground rail line and two new underground train stations in the city centre. By connecting up the existing rail lines we will be able to provide more frequent trains with more direct services to the city centre, carrying up to 30,000 people an hour.

The CRL has transport benefits for large parts of Auckland, including road users, as making public transport a better travel choice will ease pressure on roads for those who need to use them.

Rail users will see a train about every 7 to 10 minutes at peak for most Auckland stations, and faster, more frequent public transport services with increased rail feeder buses freeing up city centre arterial bus services.

Getting to other parts of the city using public transport from areas such as New Lynn will be much quicker. For example, New Lynn to Aotea Square will take under 30 minutes.

Accelerated Transport Programme

The Accelerated Transport Programme is in its second year, this outlines the priority transport projects that will be funded across the region by the Interim Transport Levy.

The programme invests in transport interchanges, walking and cycling initiatives, safety initiatives, road corridor improvements, park and ride facilities, bus lanes and rural road seal extensions.

Ōtāhuhu Bus-Train Interchange

We are building a new bus-train interchange at the Ōtāhuhu railway station to provide better connected and more frequent public transport services. This modern, high-quality facility will feature architecture reflecting the local and historical context. Separate paths for pedestrians, cyclists and other vehicles will improve safety, while covered bus platforms, cycle storage racks and a dedicated passenger drop-off zone will make using public transport easier and more enjoyable.

Albany Highway upgrade

The Albany Highway North upgrade is Auckland Transport's biggest roading project on the North Shore since the Northern Busway. 

Albany Highway serves the North Harbour industrial estate, five schools, Massey University and growing residential areas.  Traffic volumes on the highway are expected to rise from 15,000 to 20,000 vehicles per day by 2021.

The project is important to support growth, reduce congestion, improve safety and encourage use of a range of transport modes along the corridor.  The upgrade involves the provision of new transit lanes, on and off-road cycle routes, wider footpaths, a new bridge over Oteha Stream (Day's Bridge) and the replacement of three major roundabouts with signalised intersections. Construction on this project began in November 2014 and is expected to be completed in late 2016, well ahead of schedule.

Te Atatu roads upgrade

The Te Atatu project involves upgrading approximately 1.4km of Te Atatu and Edmonton Roads in west Auckland.  An average of 38,000 vehicles a day use Te Atatu Road to get on or off the Northwestern Motorway (SH16), making it one of the busiest roads in west Auckland. Congestion is already an issue on this route with a high incidence of accidents.

The project will support growth and boost the efficiency and safety of Te Atatu Road for all road users, especially buses, cyclists and pedestrians.  Construction on this project began in August 2015, with the project scheduled for completion in early 2017.

Other priorities

Māori transformational activities

Transport contributes to the following Māori transformational shift activities:

Young Māori drivers and passengers is a road safety programme that targets the issues surrounding the safety of young Māori drivers and passengers in urban south, central and west Auckland.  During the Long-term Plan 2015-2025 three Ready for Road programmes were completed in conjunction with marae and the New Zealand Police and a full time staff position established.

Investment in the young Māori drivers and passengers programme will continue in 2016/2017.

Financial information

Capital spend by activity area:

Capital spend by category:

Capital spend key projects:

Operating spend by activity area:

Operating spend by category:

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2.2 Parks, community and lifestyle

Auckland Council contributes to making Auckland a vibrant and interesting place to live, by providing a range of facilities, services and events. These encompass sports, arts, culture, recreation and leisure experiences, by providing a wide range of libraries, pools, fields, parks and community centres.

Key priorities for 2016/2017 include:

Key highlights and priorities for the Annual Budget 2016/2017

Sportsfield development

Auckland sportspeople can spend more time playing, thanks to Auckland Council's $43 million investment in developing the region's sportsfields over the last three years. By developing new fields, improving drainage and installing floodlights, sand carpets and artificial turf we have increased capacity by 773 playing hours a week.

But there is still work to do. Over the next three years we will be upgrading toilets and changing rooms at 10 sports parks, creating three new hockey turfs and several new or upgraded netball courts. We will add a further 526 playing hours a week to our sportsfield network by providing for:

Albany stadium pool

We are building a new recreational swimming pool near QBE Stadium to cater for the growing population in north Auckland. With a focus on fun and recreation, this facility will have something for all ages.

Other priorities

Māori transformational activities

Parks, community and lifestyle contribute to the following Māori transformational shift activities:

Kaitiaki rangers were initiated to provide work experience for eight mana whenua rangatahi (youth) to undertake kaitiaki activities on southern regional parks through the summer internship programme. It has provided multiple outcomes including six rangatahi finding ongoing employment in kaitiaki work.

Kaitiaki rangers will be expanded across three geographic sectors. The initiative will include a 12 month ranger trainee certificate course as a career pathway to becoming a park ranger.

Financial information

Capital spend by activity area:

Capital spend by category:

Capital spend key projects:

Operating spend by activity area:

Operating spend by category:

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2.3 Environmental management and regulation

We provide many services that support Auckland's environments to be safe, sustainable and to enable thriving communities. We work alongside iwi and community partners to restore and enhance our natural environment. We also collect rubbish and recycling and minimise the risk that our homes and businesses flood when it rains. 

We provide a solid regulatory environment that delivers quality customer services as well as good environmental outcomes and emergency management that works to ensure resilience.

Key priorities for 2016/2017 include:

Key highlights and priorities for the Annual Budget 2016/2017

Collection and processing of waste

With the roll out of a regionally consistent kerbside recycling collection service we will introduce 240 litre wheelie bins to residential and commercial premises in Rodney, Waitākere and the North Shore. The same service will be rolled out in rural Franklin in November 2016.

We aim to establish 12 Community Recycling Centres across the region over a 10-year period. Sites at Waiuku, Helensville and Devonport have been secured and contracted to local community enterprises to operate. A fourth site in Waitākere is being trialled and is likely to be tendered in late 2016. Work is also underway across the region. This includes preparing two sites in the central area, a scoping study in the south. Trials in the Hauraki Gulf Islands are also starting the process of identifying sites and building capacity amongst potential future operators.

Stormwater infrastructure

Balancing the demand for new stormwater infrastructure, whilst maintaining the existing network is a challenge for our Stormwater department.

Critical asset renewals to the stormwater system include the design and installation of a 3.3m diameter stormwater pipe from the south side of Quay Street across Ports of Auckland to the Waitematā Harbour. This project requires careful management in the scheduling to keep the ports operational whilst balancing the risk of the current pipe failing.

With the growth across the city, the Artillery Drive stormwater development is an example of a project that will help to meet the demand. It is a 2.5m diameter, one kilometre long tunnel from McLennan Park to Pahurehure Inlet. This will service the growth areas at Takanini.

Consenting Made Easy

Regulatory services have a project underway to make the consenting process easier for customers. The Consenting Made Easy programme has been established to deliver an easy, fast, consistent and integrated consenting experience across all consenting needs for a project.  It will provide a faster service with online capability and clear expectations for customers on consenting processes and application requirements.

Other priorities

Māori transformational activities

The projects and activities in this area of spend impact outcomes that are fundamentally important to mana whenua and the wider Māori community.  This area of spend contributes to the following Māori transformational shift activity:

Para kore ki Tāmaki - Zero waste marae, is a marae-based waste diversion project that builds on Māori practices and knowledge and best practice environmental waste management.  In 2015/2016, 11 marae participated in the project, where over a three month period, 83 per cent of waste was diverted from landfill (89,340 litres). In 2016/2017 we will build on last year's success of reducing waste to land fill and on expanding the programme.

Financial information

Capital spend by activity area:

Capital spend by category:

Capital spend key projects:

Operating spend by activity area:

Operating spend by category:

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2.4 Auckland development

One of our main aims is to create a city with great neighbourhoods, centres, parks and public spaces that are loved by Aucklanders.  We aim to provide choices, reflect Auckland's Māori identity as our point of difference in the world and connect people to places and to each other.

Key priorities for 2016/2017 include:

Key highlights and priorities for the Annual Budget 2016/2017

Westgate Town Centre

Auckland Council and New Zealand Retail Property Group are building the new Westgate regional town centre in the western part of Auckland. This new centre's civic heart will include a new 3500m2 library featuring a unique children's reading and storytelling 'cocoon' space, community rooms, a cafe and Citizens' Advice Bureau. The large civic space will be a pedestrian-friendly, slow-speed zone or shared space. It will also be a place for people to gather and relax with family and friends.

Transform Manukau

Panuku Development Auckland will lead the transformation by catalysing change through urban regeneration. This provides an opportunity to create new mixed-use housing and commercial buildings, retail shops, and to improve connections around the area between homes, public spaces, public transport and the town centre. The completion of a framework plan in 2016/2017 will guide the delivery of the project outcomes over a 20-year period.

City Centre Projects

In the 2016/2017 financial year, four City Centre projects will be constructed. The second stage of improvements to Myers Park will begin around the middle of 2016.  This project is all about improving connections into the park as well as creating a much-wanted splash pad for water play. The Pioneer Women's and Ellen Melville Hall will be renovated. Freyberg Square will be upgraded to complement the Pioneer Women's and Ellen Melville Hall with more open space that will provide an ideal spot to relax.  The first stage of streetscape upgrades within the Britomart precinct will be completed before November 2016. 

Other priorities

Māori transformational activities

Auckland development contributes to the following Māori transformational shift activities:

Māori sites of significance activities recognise and protect Auckland's Māori cultural heritage. Over the past year, a Māori heritage team was established and about 100 Māori sites of significance were identified in collaboration with 12 mana whenua tribal authorities.

84 new sites nominated by mana whenua will be assessed in 2016/2017.

Financial information

Capital spend by activity area:

Capital spend by category:

Capital spend key projects:

Operating spend by activity area:

Operating spend by category:

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2.5 Economic and cultural development

Auckland Council's role in raising living standards is multi-faceted, and economic and cultural development is a critical part of this. We aim to raise living standards through attracting investment and visitors, delivering and attracting events, progressing training and innovation programmes, and providing major cultural and sporting facilities.

Key priorities for 2016/2017 include:

Key highlights and priorities for the Annual Budget 2016/2017

World Masters Games 2017

From 21-30 April 2017, Auckland will host the World Masters Games 2017, delivered by Auckland Tourism, Events and Economic Development (ATEED).  With an anticipated 25,000 participants competing across 28 sports, it is the world's largest multi-sport event and is expected to deliver 250,000 visitor nights and contribute $36 million of additional GDP to Auckland's economy.

Innovation Precinct GridAKL

GridAKL is the innovation precinct in Wynyard Quarter, delivered by ATEED which aims to grow innovative businesses, create jobs and enrich the innovation community for Auckland's economic future.  The first new building in the GridAKL innovation precinct is expected to open in 2017, more than doubling GridAKL's capacity.  It is expected to house business start-ups, small and medium enterprises, and a large corporate.

Auckland Zoo

Auckland Zoo's 10-year redevelopment programme picks up momentum in 2016/2017 with the completion of the Australia precinct and the commencement of a major new South East Asia development. 

This capital investment programme will further enhance the zoo's ability to provide the very best for its animals, visitors and staff and progress its mission to bring people together to build a future for wildlife.

Stadiums

Regional Facilities Auckland (RFA) will continue to explore opportunities to increase utilisation and financial sustainability through strategic investment into Western Springs, QBE North Harbour Stadium and Mt Smart Stadium leading to the creation of world-class, fit-for-purpose facilities, including high-performance training facilities.

Other priorities

Māori transformational activities

Economic and cultural development contribute to the following Māori transformational shift activities:

ATEED successfully delivered the inaugural Tāmaki Herenga Waka Festival in close collaboration with Tāmaki Makaurau mana whenua on Auckland Anniversary Weekend on the waterfront. The event was attended by more than 20,000 people with 84 per cent likely to recommend or attend future festivals.  The festival included a village, three stages for performances, carving and weaving displays, waka opportunities and food stalls.

The Tāmaki Herenga Waka Festival will be held as part of 2017 Auckland Anniversary weekend building on the success of this year's festival.

Financial information

Capital spend by activity area:

Capital spend by category:

Capital spend key projects:

Operating spend by activity area:

Operating spend by category:

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2.6 Governance and support

Keeping Auckland running involves delivering a variety of administrative, management and support functions. This includes enabling and supporting our elected members in their governance and decision-making roles. We also manage the council's investments in Ports of Auckland Limited (POAL), Auckland International Airport Limited (AIAL) and Auckland Film Studios. We also provide funding support to a number of external organisations such as the Auckland Regional Amenities Funding Board, the Auckland War Memorial Museum, MoTAT and COMET.

Key priorities for 2016/2017 include:

Key highlights and priorities for the Annual Budget 2016/2017

Local body elections

The October 2016 Local Body elections with 1,054,619 registered voters is a key programme for Governance for this year.

In October Aucklanders will elect their new Mayor, 20 Councillors and 149 Local Board members who will govern the city for the next three years. This year our objective is simple: deliver an excellent experience for candidates and voters with an increased voter turnout and organise elections that are both innovative and transparent. Key to the success of the elections is our communications and engagement campaign, which will include a strong online presence and offer more in-depth candidate information using a variety of social media platforms.

NewCore roll out

NewCore is one of our biggest and most critical transformation projects.  It will consolidate, standardise and simplify the hundreds of applications and systems we use today to deliver services to Aucklanders.

With the aim of providing a quality and consistent service to customers, NewCore will be rolled out this year across call centre, rates, regulatory, consenting and property services.

Ports of Auckland Limited

Over the next year, POAL will make capital investments of $160.5 million designed to maintain and improve current revenue earning capacity.

Visited by more than 1,500 commercial vessels a year, Auckland is New Zealand's largest container port and a vital part of Auckland's prosperity.  An estimated 187,000 jobs in the Auckland Region rely on trade through the ports.

 It handles around 100 cruise ships annually, with each cruise visit benefiting the local economy by about $1.5 million.

Other priorities

Māori transformational activities

The projects and activities in this area of spend provide opportunities for the council and Māori to establish and maintain robust relationships and to enable Māori to participate in the council's decision-making processes.  Activities in this area of spend contribute to the following Māori transformational shift activities:

The Māori cultural investment fund invests in a range of programmes. In 2015/2016 the focus was on marae development and papakāinga housing. Assessment of the infrastructure of 31 marae (14 mataawaka and 17 mana whenua) across Auckland was completed with five marae applying for funding for infrastructure investment.  The council is working with seven organisations and developing relationships with central government to progress papakāinga housing.

The focus for marae and papakāinga is to continue to work with marae, papakāinga housing stakeholders and other funders to provide tangible outcomes through investment and programme delivery.

Financial information

Capital spend by activity area:

Capital spend by category:

Capital spend key projects:

Operating spend by activity area:

Operating spend by category:

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2.7 Water supply and wastewater treatment and disposal

Watercare is a council-controlled organisation responsible for delivering safe, clean and reliable drinking water to Aucklanders and collecting, treating and discharging the wastewater.

Each day, Watercare supplies around 326 million litres of water to the people of Auckland and collects, treats and discharges around 400 million litres of wastewater.

Currently, Watercare's networks have sufficient capacity to allow 45,000 new homes and businesses to connect. Over the next 10 years, the company will invest $4.9 billion upgrading and expanding its infrastructure to provide capacity for a further 195,000 connections.

Key priorities for 2016/2017 include:

Key highlights and priorities for the Annual Budget 2016/2017

Northern Interceptor

Construction will begin on phase one of the Northern Interceptor (wastewater pipe), and continue to plan and gain consents for the remaining phases of the project. The Northern Interceptor will support growth across western and northern parts of Auckland. By directing wastewater to the Rosedale Wastewater Treatment Plant, it will also free up capacity at the Māngere Wastewater Treatment Plant, thereby supporting growth across central and southern parts of Auckland.

Pukekohe East Reservoirs

As Auckland's population grows, so does the demand for water. To assist in catering for demand, and maintaining a secure supply of water to Auckland, a proposed upgrade is scheduled for the regional water network including the construction of two new water reservoirs, at the corner of Runciman and Rutherford roads, Pukekohe East. Construction of the first reservoir is scheduled to start in 2017, taking two years to build. The second is currently scheduled for construction around 10 to 15 years later, depending on future population growth.

Hunua 4 Watermain

Works are progressing to install a new water main to cater for population growth and increasing the security of Auckland's water supply. The 32-kilometre-pipeline route started at the Redoubt North Reservoir in Manukau Heights and will eventually reach the reservoir in Khyber Pass Road, Grafton.

Other priorities

Māori transformational activities

Water is of significant importance to Māori in terms of the health and well-being of people and the wider environment. Activities in this area of spend contribute to following Māori transformational shift activities:

The Mana Whenua Kaitiaki forum enables Watercare to proactively and strategically engage with Auckland's 19 mana whenua tribal authorities across its business. Watercare's processes also enable mana whenua to be involved at an early stage of projects.

The Watercare Mana Whenua Kaitiaki forum and its engagement process will continue in 2016/2017.

Financial information

Capital spend by activity area:

Capital spend by category:

Capital spend key projects:

Operating spend by activity area:

Operating spend by category:

> Back to contents list

Part 3: Our finances

3.1 Financial overview

Introduction

This section provides a high-level overview of our key financial information and explains how we fund our activities.  This should be read in conjunction with the prospective financial statements in the next section.

Key financial parameters for 2016/2017

($ million)

Long-term Plan 2015/16

Long-term Plan 2016/17

Annual Plan

2016/17

Total capital expenditure

1,802

1,911

1,945

Total operating expenditure

3,446

3,689

3,667

Rates revenue

1,571

1,646

1,637

Average general rates increase

2.5%

3.2%

2.4%

Total assets

42,825

45,849

45,715

Total borrowing

8,046

8,850

8,767

Total equity

32,214

34,312

34,057

Interest to revenue ratio

11.3%

11.6%

11.5%

Capital investment and debt levels

Capital expenditure is for purchasing, building, replacing or developing the city's assets (for example roads, libraries, parks and sportsfields).  Our planned capital investment for 2016/2017 builds on our significant investment in new assets for Auckland over the past five years, including:

For 2016/2017, our budget sets out a further $1.375 billion of investment in new assets as well as $570 million to look after existing ones. This will see the assets of the Auckland Council group grow to $46 billion in 2016/2017.

Aucklanders will see this investment occur across the region and in a wide range of council services. This investment will also range from large projects spanning multiple years, such as the City Rail Link and AMETI, through to local projects such as upgrades to community centres, libraries and sportsfields.

The following tables show how we plan to fund our capital expenditure and other capital outflows in 2016/2017.

Capital expenditure and other outflows 2016/2017

$ million

Growth

705

Service level improvement

667

Renewals

573

Weathertightness claims and other movements

24

Total

1,969

 

Funding sources 2016/2017

$ million

Subsidies

240

Development contributions

163

Asset sales

87

Operating cash surplus

644

Borrowings

835

Total

1,969

 

The continued investment in Auckland (including the $1.375 billion investment in new assets for 2016/2017) will see us increasing council debt from $8 billion to $8.75 billion, while ensuring that interest costs do not exceed 12 per cent of our revenue (see Figure 3).

We consider this increase in debt to be appropriate on the basis that it is driven by investment in new assets with long useful lives. The benefits from this expenditure will be spread over time, and using debt financing means that costs will be shared with those people who will benefit from the assets in the future.

Our financial strategy sets limits on the council's borrowing, to maintain debt at a sustainable level. While total group debt is projected to reach $11.6 billion by 2025, it will still remain at a prudent level in comparison to our income. This prudent approach to debt is a key reason why we have an AA Standard & Poor's credit rating - the highest in New Zealand apart from central government.

To ensure we can continue to invest in the infrastructure required to support Auckland's growth whilst maintaining this credit rating and debt position the council has undertaken a review of alternative financing options.  The first decision from this work has been to allow the release of additional capital from the Diversified Financial Assets Portfolio.

Figure 3: Key prudential ratio, interest to revenue

Figure 3, graph, table equivalent is after this image
Figure 4 table equivalent

 

Actual results

Updated budget

Long-term Plan 2015-2025

blank

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Ratio

10%

10%

11%

12%

11%

12%

12%

12%

12%

12%

12%

12%

12%

11%

Limit

15%

15%

15%

15%

15%

15%

15%

15%

15%

15%

15%

15%

15%

15%

Target

12%

12%

12%

12%

12%

12%

12%

12%

12%

12%

12%

12%

12%

12%

Table equivalent ends.

Operating expenditure and revenue sources

Operating expenditure covers the council's day-to-day operations and services, from collecting rubbish to maintaining parks and issuing building consents. It also includes costs related to the capital expenditure programme such as interest, maintenance and depreciation.

For 2016/2017 we are planning operating expenditure of $3.7 billion. This supports our investment programme and pays for a wide range of day-to-day services such as maintaining roads, collecting rubbish and running libraries. While this is a large budget, it reflects the high cost of running the largest council in Australasia, and providing all the services that Aucklanders expect and value.

Some key examples of these costs include:

We also provide assistance to other organisations including:

In 2016/2017, the council must also cover the costs of holding an election with 1,054,619 registered voters, and putting in place the Auckland Unitary Plan - the single rulebook for development in Auckland.

To minimise the impact of rising operating costs on rates, we have been working hard over the past five years to contain core costs and achieve efficiency gains of over $200 million per annum so far. Over the same period we added a city the size of Tauranga to our population. Figure 4 shows that the council's core operating costs from 2010 to 2015 (as reported in our audited accounts) on a per capita basis are still well below the level of 2009 - immediately prior to amalgamation.

Figure 4: Core council expenditure per capita

Figure 4, graph, table equivalent is after this image
Figure 4 table equivalent

 

Year

Operating expenditure excluding interest and depreciation

Population

Operating expenditure excluding interest, depreciation and non-cash adjustments

2009 level

Former councils

2008

1,857

1,405,500

1,321

1,494

Former councils

2009

2,124

1,421,700

1,494

1,494

Former councils

2010

2,357

1,439,600

1,637

1,494

Actual results

2011

2,151

1,459,600

1,473

1,494

Actual results

2012

2,114

1,476,500

1,432

1,494

Actual results

2013

2,004

1,493,200

1,342

1,494

Actual results

2014

2,058

1,526,900

1,348

1,494

Actual results

2015

2,173

1,570,500

1,383

1,494

Table equivalent ends.

The following tables show our operating expenditure and funding sources for 2016/2017.

Operating expenditure 2016/17

$ million

Staff

811

Interest

466

Depreciation

885

Other

1,505

Total

3,667

 

 

Funding sources 2016/17

$ million

Rates

1,637

Fees and user charges

1,228

Subsidies and grants

260

Other

300

Total

3,425

 

Because our policy is to move to fully funding depreciation over the current long-term plan period, the total of our operating funding sources of $3.4 billion is less than the $3.7 billion operating expenditure. The $3.4 billion of operating funding sources includes a surplus of $645 million to fund capital expenditure.

To help pay for continued investment in Auckland (including the $1.375 billion investment in new assets for 2016/2017) we will:

 

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3.2 Prospective financial statements and notes

Prospective statement of comprehensive revenue and expenditure

Auckland Council group consolidated

$000

Financial year ending 30 June

Long-term Plan

2015/16

Long-term Plan

2016/17

Annual

Plan

2016/17

Variance

2016/17

Notes

Revenue

blank

blank

blank

blank

blank

Rates

1,571,188

1,646,308

1,636,654

(9,654)

1

Fees and user charges

1,143,071

1,303,191

1,227,958

(75,233)

2

Grants and subsidies

427,336

513,208

499,971

(13,237)

3

Development and financial contributions

164,834

198,800

163,318

(35,482)

4

Vested assets

169,930

186,533

195,852

9,319

blank

Other revenue

175,937

196,777

239,767

42,990

2

Finance revenue

5,383

5,629

5,394

(235)

blank

Total revenue

3,657,679

4,050,446

3,968,914

(81,532)

blank

Expenditure

blank

blank

blank

blank

blank

Employee benefits

771,527

782,635

810,916

28,281

5

Depreciation and amortisation

823,205

871,836

885,370

13,534

6

Grants, contributions and sponsorship

127,913

120,663

124,891

4,228

blank

Other operating expenses

1,283,145

1,428,057

1,380,432

(47,625)

5,7

Finance costs

440,617

485,613

465,403

(20,210)

8

Total expenditure

3,446,407

3,688,804

3,667,012

(21,792)

blank

Operating surplus

211,272

361,642

301,902

(59,740)

blank

Share of surplus in associates and joint ventures

43,443

45,937

55,109

9,172

blank

Surplus before income tax

254,715

407,579

357,011

(50,568)

blank

Income tax expense

28,267

29,656

27,011

(2,645)

blank

Surplus after income tax

226,448

377,923

330,000

(47,923)

blank

Surplus after income tax is attributable to:

blank

blank

blank

blank

blank

Ratepayers of Auckland Council

226,448

377,923

330,000

(47,923)

blank

Other comprehensive revenue

blank

blank

blank

blank

blank

Net gain on revaluation of property, plant and equipment

4,634

1,805,900

1,018,085

(787,815)

6

Tax on revaluation of property, plant and equipment

0

(85,201)

(91,295)

(6,094)

blank

Total other comprehensive revenue

4,634

1,720,699

926,790

(793,909)

blank

Total comprehensive revenue

231,082

2,098,622

1,256,790

(841,832)

blank

Total comprehensive revenue is attributable to:

blank

blank

blank

blank

blank

Ratepayers of Auckland Council

231,082

2,098,622

1,256,790

(841,832)

blank

Notes to variances in the previous table:

1. The lower rates revenue reflects the movement from a 3.2 per cent average general rates increase to existing ratepayers to 2.4 per cent.

2. The decrease in fees and user charges is driven by lower revenue from public transport operators, water connection fees, and port activities. It is also reduced by a reclassification to "other revenue".

3. The decrease in subsidies and grants is mainly due to timing changes to transport capital projects that are partially funded through capital grants from central government.

4. Population growth is continuing to drive growth in Development contribution revenue but at a level lower than that projected in the Long-term Plan.

5. A correction in coding between employee benefits and other operating expenses in Watercare Services Limited show as an increase in the former and a reduction in the latter.

6. Significant increases in property values across Auckland necessitated an early revaluation of council land and buildings in 2015/2016. This, along with the reassessment of the useful lives of some transport assets, is the primary driver in the increase in projected depreciation expenditure. The early revaluation also results in a lower projected net gain on revaluation for 2016/2017.

7. Decreases in inflation projections and lower expenditure paid to public transport operators (see note 2 for corresponding decrease in public transport operator revenue) have driven lower other operating expenses.

8. Finance costs are lower than projected in the long-term plan due to a decrease in forecast interest rates, combined with lower debt levels.

 

Prospective statement of changes in equity

Auckland Council group consolidated

$000

Financial year ending 30 June

Long-term Plan2015/16

Long-term Plan2016/17

Annual

Plan

2016/17

Variance 2016/17

Notes

Contributed equity

blank

blank

blank

blank

blank

Opening balance

26,734,382

26,734,382

26,728,438

(5,944)

1

Surplus after income tax

0

0

0

0

blank

Other comprehensive revenue

0

0

0

0

blank

Total comprehensive revenue

0

0

0

0

blank

Transfer to/ (from) reserves

0

0

0

0

blank

Balance as at 30 June

26,734,382

26,734,382

26,728,438

(5,944)

blank

Accumulated funds

blank

blank

blank

blank

blank

Opening balance

694,488

920,549

739,338

(181,211)

2

Surplus/ (deficit) after income tax

226,448

377,923

330,000

(47,923)

3

Other comprehensive revenue

0

0

0

0

blank

Total comprehensive revenue

226,448

377,923

330,000

(47,923)

blank

Transfer to/ (from) reserves

(387)

4,672

4,964

292

blank

Balance as at 30 June

920,549

1,303,144

1,074,302

(228,842)

blank

Reserves

blank

blank

blank

blank

blank

Opening balance

4,553,869

4,558,890

5,332,417

773,527

4

Surplus after income tax

0

0

0

0

blank

Other comprehensive revenue

4,634

1,720,698

926,789

(793,909)

4

Total comprehensive revenue

4,634

1,720,698

926,789

(793,909)

blank

Transfer to/ (from) reserves

387

(4,672)

(4,964)

(292)

blank

Balance as at 30 June

4,558,890

6,274,916

6,254,242

(20,674)

blank

Total equity

blank

blank

blank

blank

5

Opening balance

31,982,739

32,213,821

32,800,193

586,372

blank

Surplus after income tax

226,448

377,923

330,000

(47,923)

blank

Other comprehensive revenue

4,634

1,720,698

926,789

(793,909)

blank

Total comprehensive revenue

231,082

2,098,621

1,256,789

(841,832)

blank

Transfer to/ (from) reserves

0

0

0

0

blank

Balance as at 30 June

32,213,821

34,312,442

34,056,982

(255,460)

blank

Notes to variances in the above table:

1. The reduction in opening equity is the result of restructuring loans within the group.

2. The reduction in opening accumulated funds reflects a lower closing position in the 2014/2015 annual accounts.  This was mainly due to movements in the fair value of financial assets primarily due to a falling interest rate environment.

3. For variances in surplus after income tax and other comprehensive revenue refer to notes on the Prospective Statement of Comprehensive revenue and expenditure.

4. The variance on reserves opening balance and movement is due to the early revaluation in 2015/2016 of council land and buildings due to large increases in property values across Auckland.

5. There is no minority interest in the group. Total equity represents ratepayer equity.

Prospective statement of financial position

Auckland Council group consolidated

$000

Financial year ending 30 June

Long-term Plan

2015/16

Long-term Plan

2016/17

Annual

Plan

2016/17

Variance

2016/17

Notes

ASSETS

blank

blank

blank

blank

blank

Current assets

blank

blank

blank

blank

blank

Cash and cash equivalents

240,000

240,000

329,518

89,518

1

Receivables and prepayments

244,231

272,835

262,339

(10,496)

blank

Other financial assets

365,956

365,956

265,760

(100,196)

2

Derivative financial instruments

556

556

1,594

1,038

blank

Inventories

22,581

23,146

17,129

(6,017)

1

Non-current assets held for sale

67,121

52,651

52,650

(1)

blank

Total current assets

940,445

955,144

928,990

(26,154)

blank

Non-current assets

blank

blank

blank

blank

blank

Receivables and prepayments

93,665

104,634

25,616

(79,018)

1

Other financial assets

133,062

147,476

138,515

(8,961)

blank

Derivative financial instruments

93,748

93,748

200,068

106,320

1

Property, plant and equipment

39,766,458

42,748,712

42,439,345

(309,367)

1

Intangible assets

485,649

482,614

521,031

38,417

1

Biological assets

1,764

1,764

1,704

(60)

blank

Investment property

457,281

457,281

559,574

102,293

1

Investments in associates and joint ventures

853,415

857,933

900,045

42,112

1

Total non-current assets

41,885,042

44,894,162

44,785,898

(108,264)

blank

TOTAL ASSETS

42,825,487

45,849,306

45,714,888

(134,418)

blank

LIABILITIES

blank

blank

blank

blank

blank

Current liabilities

blank

blank

blank

blank

blank

Employee entitlements

81,844

83,022

87,355

4,333

blank

Payables and accruals

717,411

772,317

753,404

(18,913)

1

Borrowings

1,490,518

1,640,640

1,612,639

(28,001)

2

Derivative financial instruments

40,553

40,553

1,913

(38,640)

1

Tax payable

0

0

2,048

2,048

1

Provisions

61,159

48,873

60,672

11,799

1

Total current liabilities

2,391,485

2,585,405

2,518,031

(67,374)

blank

Non-current liabilities

blank

blank

blank

blank

blank

Employee entitlements

5,390

5,468

5,316

(152)

blank

Payables and accruals

52,269

59,261

61,506

2,245

blank

Borrowings

6,555,787

7,209,813

7,152,851

(56,962)

2

Derivative financial instruments

235,666

235,666

485,034

249,368

1

Provisions

259,487

227,935

242,726

14,791

1

Deferred tax liabilities

1,111,582

1,213,316

1,192,442

(20,874)

1

Total non-current liabilities

8,220,181

8,951,459

9,139,875

188,416

blank

TOTAL LIABILITIES

10,611,666

11,536,864

11,657,906

121,042

NET ASSETS

32,213,821

34,312,442

34,056,982

(255,460)

EQUITY

blank

blank

blank

blank

blank

Contributed equity

26,734,382

26,734,382

26,728,438

(5,944)

blank

Accumulated funds

920,549

1,303,144

1,074,302

(228,842)

1

Reserves

4,558,890

6,274,916

6,254,242

(20,674)

1

Total ratepayers equity

32,213,821

34,312,442

34,056,982

(255,460)

blank

TOTAL EQUITY

32,213,821

34,312,442

34,056,982

(255,460)

blank

Notes to variances in the previous table:

1. Variances are due to the updating of opening balances to reflect balances in the audited 2014/2015 annual accounts.

2. The anticipated increase in capital drawdown of the diversified financial asset portfolio reduces the projected level of financial assets and of borrowings.  The reduction in borrowings is partially offset by lower development contribution revenue.

Prospective statement of cash flows

Auckland Council group consolidated

$000

Financial year ending 30 June

Long-term Plan

2015/16

Long-term Plan

2016/17

Annual

Plan

2016/17

Variance

2016/17

Notes

Cash flows from operating activities

blank

blank

blank

blank

blank

Receipts from rates revenue

1,563,551

1,630,199

1,627,888

(2,311)

blank

Receipts from customers and other services

1,884,531

2,171,818

2,103,403

(68,415)

blank

Interest received

5,383

5,629

5,394

(235)

blank

Dividends received

42,596

45,102

54,416

9,314

blank

Payments to suppliers and employees

(2,208,271)

(2,327,569)

(2,295,556)

32,013

blank

Interest paid

(428,422)

(475,120)

(454,766)

20,354

blank

Income tax refund/(paid)

(11,957)

(13,123)

(9,412)

3,711

blank

Net cash from operating activities

847,411

1,036,936

1,031,367

(5,569)

1

Cash flows from investing activities

blank

blank

blank

blank

blank

Proceeds from sale of other financial assets

17,125

17,483

100,024

82,541

2

Sale of property, plant and equipment, investment property and intangible assets

69,172

67,121

87,407

20,286

3

Purchase of property, plant and equipment, investment property and intangible assets

(1,801,742)

(1,911,273)

(1,945,333)

(34,060)

4

Proceeds from community loan repayments

0

0

0

0

blank

Acquisition of other financial assets

(4,512)

(5,414)

(5,414)

0

blank

Advances to external parties

(9,000)

(9,000)

(9,000)

0

blank

Net cash from investing activities

(1,728,957)

(1,841,083)

(1,772,316)

68,767

blank

Cash flows from financing activities

blank

blank

blank

blank

blank

Proceeds from borrowings

1,943,495

2,294,665

2,221,449

(73,216)

blank

Repayment of borrowings

(1,069,949)

(1,490,518)

(1,480,500)

10,018

blank

Net cash from financing activities

873,546

804,147

740,949

(63,198)

blank

Net increase/(decrease) in cash and cash equivalents and bank overdrafts

(8,000)

0

0

0

blank

Opening cash and cash equivalents and bank overdrafts

248,000

240,000

329,518

89,518

5

Closing cash and cash equivalents and bank overdrafts

240,000

240,000

329,518

89,518

blank

Notes to variances in the above table:

1. Variances in cash flows from operating activities reflect the updated projections included in the Prospective statement of comprehensive revenue and expenditure.

2. The increase in proceeds from sale of financial other financial assets compared to the long-term plan is due to the anticipated increase in capital drawdown of the diversified financial asset portfolio.

3. The asset sales target is adjusted from the long-term plan to reflect a partial carry forward of the prior year target.

4. The increase in purchase of property, plant and equipment is mainly due increased capital expenditure on transport activities as well as the carry-forward of capital expenditure from prior years. This is partially offset by lower capital expenditure on water activities.

5. The increase in cash is due to the updating of opening balances to reflect balances in the audited 2014/2015 annual accounts.

 

3.2.1 Notes to the prospective financial statements

Note 1: Statement of significant accounting policies

REPORTING ENTITIES

Auckland Council (the council) is a local authority domiciled in New Zealand and governed by the Local Government Act 2002 (LGA 2002) and the Local Government (Auckland Council) Act 2009 (LGACA 2009). The council's principal address is 135 Albert Street, Auckland Central, New Zealand.

Financial information within this Annual Plan is prepared and disclosed on a full group basis (except where specifically stated otherwise). The Auckland Council Group (the Group) consists of the council, and its controlled entities. All entities are domiciled in New Zealand.  The council considers that group information enhances the transparency of information about the cost of services provided to Auckland ratepayers and enables ratepayers to make more informed decisions about the impact of delivering on the Auckland Plan.

The primary objective of the Group is to provide services and facilities to the Auckland community for social benefit rather than to make a financial return. Accordingly, the council has designated itself and the Group as public benefit entities (PBEs) and applies New Zealand Tier 1 Public Benefit Entity accounting standards (PBE Accounting Standards).  These standards are based on International Public Sector Accounting Standards (IPSAS), with amendments for the New Zealand environment.

The council has a balance date of 30 June and these prospective financial statements are for the period from 1 July 2016 to 30 June 2017. The actual results achieved for the period covered by this plan are likely to vary from the information presented in this document, and these variances may be material. The council does not intend to update the prospective financial statements after publication.

STATEMENT OF COMPLIANCE

The prospective financial information has been prepared for the purposes of meeting the council's requirements under the LGA 2002 and the LGACA 2009. This information may not be suitable for use in any other context.

These financial statements are prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP), the LGA 2002 and the LGACA 2009 and comply with PBE Accounting Standards. In particular, these prospective financial statements have been prepared in accordance with PBE Financial Reporting Standard-42: Prospective Financial Statements.

BASIS OF PREPARATION

The council is responsible for the prospective financial statements included in this plan, including the appropriateness of the significant financial assumptions these are based on, and the other disclosures in the document.

These statements were adopted by the governing body of Auckland Council on 30 June 2016.

The financial statements have been prepared on a going concern basis and the accounting policies have been applied consistently throughout the planned period.

The financial statements have been prepared on a historical cost basis with the exception of certain items identified in specific accounting policies below. They are presented in New Zealand dollars (NZD), which is the functional currency of each of the Group's entities, and are rounded to the nearest million dollars, unless otherwise stated. All items in the financial statements are stated exclusive of Goods and Services Tax (GST), except for receivables and payables, which include GST invoiced.

BASIS OF CONSOLIDATION

The prospective group financial statements include the projections of the council and its subsidiaries, together with the projections of its associates, and joint ventures, both of which are accounted for using the equity method.

Transactions and balances between the council and its subsidiaries are eliminated on consolidation.

In the council's financial statements, investments in subsidiaries are carried at cost less any accumulated impairment. Investments in associates and joint ventures are accounted using the equity method.

Where necessary, adjustments are made to the financial statements of subsidiaries, associates and joint ventures to bring their accounting policies in line with the Group.

COMPARATIVE INFORMATION

For this Annual Plan financial information from the Long-term Plan 2015-2025 has been provided as a comparator. The closing balance in this comparative differs from the opening position used to prepare this Annual Plan which is based on the most up-to-date forecast information.

COST ALLOCATION

Cost of service for each significant activity is calculated as follows:

ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the financial statements requires judgements, estimates and assumptions. Application is based on future expectations as well as historical experience and other factors, as appropriate to the particular circumstances.

Significant judgements, estimates and assumptions have been applied in measuring certain provisions and property, plant and equipment revaluations.

The present value of future cash flows for significant provisions such as weather tightness and contaminated land and closed landfills are calculated using a discount rate of 5.60 per cent, being the average forecast cost of funds for the Group. The risk premium specific to the liability is included in the undiscounted estimate of future cash flows.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Item Policy
Prospective statement of comprehensive revenue and expenditure  
Revenue

The Group derives its revenue from exchange or non-exchange transactions and is measured at fair value. Exchange transaction revenue arises when the Group provides goods or services to a third party and directly receives approximately equal value. Non-exchange transaction revenue arises when the Group receives value from another party without giving approximately equal value directly in exchange for the value received. Non-exchange revenue includes rates, grants and subsidies and fees and user charges derived from activities that are partially funded by rates.

Type

Recognition & measurement

Rates

In full at point of issuance of the ratings notice and measured at the amount assessed, which is the fair value of the cash received or receivable.

Grants

When they become receivable unless there is an obligation in substance to return the funds. If there is such an obligation, the grants are initially recorded at fair value as grants received in advance and recognised as revenue when conditions of the grant are satisfied.

Development contributions

When the council is capable of providing the service for which the contribution was levied.

Financial contributions

When they are expended on the activity for which the contribution was levied.

Vested assets1

When control of the asset is transferred to the Group at its fair value, unless there is a use or return condition attached to the asset.

Fines and infringements

When the infringement notice is issued.

Finance revenue2

Using the effective interest method.

Dividend revenue

When the Group's right to receive the dividend is established.

Fees and user charges

Water and wastewater

When invoiced or accrued in the case of unbilled services at fair value of cash received or receivable.

Sale of goods

When the substantial risks and rewards of ownership have been passed to the buyer.

Rendering of services

On a percentage of completion basis over the period of the service supplied unless an alternative method better represents the stage of completion of the transaction.

Port operations

In the period the services are rendered, by reference to the percentage of completion of the specific transaction.

Consents

By reference to the percentage of completion of the transaction at balance date based on the actual service rendered

Licences and permits

On receipt of application as these are non-refundable.

1. Primarily arises when property developers undertake development which requires them to build infrastructure in the development area. When the development is complete these are vested to the Group.

2. Includes interest revenue and realised gains from the early close-out of derivative positions.

Expenditure
 
Employee benefits

Employee entitlements for salaries and wages, annual leave, long service leave and other similar benefit are recognised as an expense and liability when they accrue to employees. Contributions to defined benefit scheme are recognised in surplus or deficit as they fall due.

Grants, contributions and sponsorship expense

Where grants and subsidies are discretionary, the expense is recognised when the Group has advised its decision to pay and when conditions, if any, are satisfied. Non-discretionary grants are recognised on receipt of application and when the specified criteria have been met.

Finance Costs

Finance costs include interest expense, the unwinding of discounts on provisions and financial assets; and net realised losses on the early close-out of derivatives. Interest expense is recognised using the effective interest rate method. Interest expense includes the amortisation of borrowing costs recognised over the borrowing term.

Income tax

Income tax comprises current tax and deferred tax calculated using the tax rate that has been enacted or substantively enacted by the reporting date. Income tax is charged or credited to the surplus or deficit, except when it relates to items that are recognised in other comprehensive revenue and expenditure or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive revenue and expenditure or directly in equity.

Current tax is the amount of income tax payable in the current period, plus any adjustments to income tax payable in respect of prior periods.

Deferred tax is the amount of income tax payable or recoverable in future periods in respect of temporary differences and unused tax losses.

Operating Leases
Lessee

The Group leases certain property, plant and equipment. Payments made under operating leases (net of any incentives received from the lessor) are expensed on a straight-line basis over the lease term.

Lessor

Rental income (net of any incentives given to lessees) is recognised as income on a straight-line basis over the lease term.

Prospective statement of financial position
 
Cash and cash equivalents

Cash and cash equivalents are made up of cash on hand, on-demand deposits and other short-term highly liquid investments. The carrying value of cash at bank and short-term deposits with maturities less than three months approximates their fair value.

Receivables and prepayments

Receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.

Provision for impairment of receivables

The provision for impairment of receivables is calculated by a review of large specific overdue receivables and a collective assessment of smaller receivables. Assessment is done on an ongoing basis. For the collective assessment, expected losses were determined by a historical analysis of previously incurred losses. Individual debts which are known to be uncollectible are written off.

Other financial assets

The Group's other financial assets are initially recognised at fair value plus transaction costs unless they are carried at fair value through surplus or deficit in which case the transaction costs are recognised in the surplus or deficit. 

Other financial assets of the Group include unit trusts, loans to related parties, credit support annex, bonds, borrower notes, community loans and listed and unlisted shares.

For those financial instruments recognised at fair value in the statement of financial position, fair values are determined according to the following hierarchy:

Level 1- Quoted prices (unadjusted) in active markets for identical assets or liabilities. The quoted market price used for financial assets held by the Group is the bid price at reporting date.

Level 2- Inputs other than quoted prices included within level 1 using observable market inputs for the asset or liability, either directly or indirectly.

Level 3- Inputs for the asset or liability that are not based on observable market data.
Derivative financial instruments

The Group does not hold or issue derivative financial instruments for trading purposes.  The Group uses derivative financial instruments, such as forward foreign currency contracts and interest rate swaps to mitigate risks associated with foreign currency and interest rate fluctuations. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured to fair value.  Any gains or losses arising from changes in the fair value of derivatives are taken directly to surplus or deficit, except for the effective portion of derivatives designated in cash flow hedges.

Derivatives are carried as assets when their fair value is positive and as liabilities when their fair value is negative.

Derivative assets and derivative liabilities are classified as non-current when the remaining maturity is more than 12 months, or as current when the remaining maturity is less than 12 months.

Cash flow hedges

The effective portion of changes in the fair value of derivatives that are designated and qualified as cash flow hedges are recognised directly in other comprehensive revenue and expenditure. The gain or loss relating to the ineffective portion is recognised immediately in the surplus or deficit. On derecognition, amounts accumulated in cash flow hedge reserve are transferred to surplus or deficit.

When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in cash flow hedge reserve at that time remains in equity and is recognised when the forecast transaction occurs.

When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in cash flow hedge reserve is recognised immediately in the surplus or deficit.

When a hedge of a forecast transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, the associated gains and losses that were recognised in other comprehensive revenue and expenditure are transferred to the initial cost of carrying amount of the asset or liability.

Property, plant and equipment

The property, plant and equipment of the Group are classified into three categories:

  • Infrastructure assets include land under roads and systems and networks integral to the city's infrastructure and intended to be maintained indefinitely, even if individual assets or components are replaced or upgraded;
  • Operational assets include property, plant and equipment used to provide core council services, either for administration, as a community service or as a business activity. Other operational assets include landfills, motor vehicles, office equipment, library books and furniture and fittings; and,
  • Restricted assets include property and improvement where the use or transfer of title outside of the Group is legally restricted.
Initial recognition and subsequent measurement

Property, plant and equipment is recognised initially at cost, unless acquired through a non-exchange transaction, in which case the asset is recognised at fair value at the date of acquisition. Subsequent costs that extend or expand the asset's future economic benefits and service potential are capitalised. After initial recognition, certain classes of property, plant and equipment are revalued. Capital work in progress is recognised at cost less impairment and is not depreciated.

Revaluation

Infrastructure assets (except land), restricted assets (except improvements) and operational assets (except heritage assets and other operational assets) are revalued with sufficient regularity at least three years to ensure that their carrying amounts do not differ materially from fair value.  The carrying values of revalued assets are assessed annually to ensure that they do not differ materially from the assets' fair values. If there is a material difference, then the off-cycle asset classes are revalued. Revaluations are carried out on an asset class basis. Net revaluation gains are recognised in other comprehensive revenue and are accumulated to the asset revaluation reserve in equity for that class of asset. Revaluation loss that results in a debit balance in the asset revaluation reserve is recognised in surplus or deficit. Any subsequent gain on revaluation is recognised first in the surplus or deficit up to the amount previously expensed and then recognised in other comprehensive revenue.

Depreciation

Depreciation is provided on all property, plant and equipment except for land and works of art.

Depreciation is calculated to write down the cost of assets on a straight line basis over their useful lives.

Asset class

Estimated useful life (years)

Revaluation method

Infrastructure

blank

blank

Land

Indefinite

Cost less accumulated impairment losses

Roads

10-120

Depreciated replacement cost

Water and wastewater

3-200

Depreciated replacement cost

Machinery

3-200

Depreciated replacement cost

Stormwater

10-200

Depreciated replacement cost

Operational

blank

blank

Land and buildings

Land - Indefinite

Buildings - 1-101

Market value based on recent equivalent sales information.

Depreciated replacement cost is used where no market exists for operational buildings with allowance for age and condition of building, and configuration

Marina structures

40-100

Depreciated replacement cost and cash flow method

Works of art

Indefinite

Fair value

Rolling stock

2-35

Depreciated replacement cost

Wharves

2-100

Depreciated replacement cost

Heritage assets

various

Deemed cost less accumulated impairment losses

Other operational 

1-100

Cost less accumulated depreciation and impairment losses

Restricted

blank

blank

Parks and reserves

Indefinite

Fair value

Improvements

3-100

Cost less accumulated depreciation and impairment losses

Buildings

5-90

Depreciated replacement cost

Disposals

Gains and losses on disposal of property, plant and equipment are recognised in surplus or deficit. Any amount included in the asset revaluation reserve in respect of the disposed item is transferred from the reserve to accumulated funds.

 
Service concession assets

Where the Group recognises an asset for the upgrades to the existing service concession assets, the Group also recognises a liability at the same amount as the asset. The liability recognised is reduced over the remaining period of the service concession arrangement.

Intangible assets
Initial recognition and subsequent measurement

Purchased intangible assets are initially recognised at cost. For internally generated intangible assets the cost includes direct employee costs, a reasonable portion of overhead and other direct costs that are incurred within the development phase of the asset only. Intangible assets acquired at no cost are initially recognised at fair value where that can be reliably measured. Intangible assets are reviewed at least annually to determine if there is any indication of impairment. Where an intangible asset's recoverable amount is less than its carrying amount, it will be reported at its recoverable amount and an impairment loss will be recognised. Losses resulting from impairment are reported within surplus or deficit.

Amortisation

Amortisation is charged to surplus or deficit on a straight-line basis over the estimated useful life of the asset with the exception of rights to acquire assets.

Asset class

Estimated useful life (years)

Subsequent measurement

Computer software

1-10

Cost less accumulated amortisation and impairment

Intellectual property

4-35

Cost less accumulated amortisation and impairment

Other intangible assets

1-63

Cost less accumulated amortisation and impairment

Disposals

Realised gains and losses from the disposal of intangible assets are recognised in surplus or deficit.

Investment property

Investment property includes land, commercial buildings and water space licences. Investment property is initially recognised at cost and subsequently measured at fair value, determined annually by an independent registered valuer. Gains or losses arising from fair value changes are included in surplus or deficit. Investment properties are valued individually and not depreciated.

Asset impairment
Impairment of property, plant and equipment and intangible assets

Intangible assets subsequently measured at cost that have indefinite useful life are tested annually for impairment. Property, plant and equipment and intangible assets subsequently measured at cost that have finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If any indication exists, the Group estimates the asset's recoverable amount.  The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. 

An impairment loss is recognised in surplus or deficit for the amount by which the asset's carrying amount exceeds its recoverable amount.

Assets are considered cash generating if their primary objective is to provide a commercial return. The value in use for cash-generating assets is the present value of expected future cash flows.

For non-cash generating assets, value in use is determined using an approach based on a depreciated replacement cost.

Property, plant and equipment that is measured at fair value, is not required to be separately tested for impairment.
Impairment of financial assets

Financial assets are assessed for impairment at each reporting date for impairment. Impairment is recognised in surplus or deficit.

Employee entitlements

Employee entitlements to be settled within 12 months are reported at the amount expected to be paid. The liability for long-term employee entitlements is reported at the present value of estimated future cash outflows.

Payables and accruals

Current payables and accruals are stated at cost. Non-current payables and accruals are measured at the present value of the estimated future cash outflows.

Borrowings

Borrowings are initially recognised at face value plus transaction costs and are subsequently measured at amortised cost using the effective interest rate method.

Provisions

Provisions are measured at the present value of the expected future cash outflows required to settle the obligation. The risk premium specific to the provisions is included in the undiscounted estimate of future cash flows. The increase in the provision due to the passage of time is recognised as finance costs in surplus or deficit.

Ratepayer equity

Ratepayer equity is the Auckland community's interest in the Group. Ratepayer equity has been classified into various components to identify those portions of equity held for specific purposes.  Contributed equity is the net asset and liability position excluding restricted reserves at the time the council was formed.

Other policies

 

Foreign currency transactions

Foreign currency transactions are translated using the exchange rate at the dates of transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from translation, using the exchange rates at balance date, of monetary assets and liabilities denominated in foreign currencies are recognised in the Prospective statement of comprehensive revenue and expenditure, except when deferred in other comprehensive revenue as qualifying cash flow hedges.

 

Note 2: Significant forecasting assumptions

The significant forecasting assumptions are based on the assumptions published in the Long-term Plan 2015-2025 and only assumptions that have been adjusted for this Annual Plan are listed below:

Assumption data for AP 2016/2017 and source

Risks and consequences

Population and development growth (including growth in the rating base)

Auckland's rapid population and development growth are key drivers of both the demand for council services and also many of its revenue sources.

Our forecast of population has been updated slightly since publishing our 10-year budget. Latest forecasts project the population of Auckland to increase by over 24,000 (1.5 per cent) in 2016/2017.

The council projects a growth in its rating base of 1.73 per cent in 2016/2017. The council uses this as an indicative adjustment to the total nominal rates increase to provide an indication of the average rates increase for existing ratepayers.

The council has made assumptions around the rate, level, location and type of residential and non-residential development growth that will occur in the future. Where this growth results in additional infrastructure requirements council can collect a portion of the cost through development contributions. Development contribution revenue is forecasted to be $163 million in 2016/2017.

Level of uncertainty - Low

Risk - Growth differs significantly from that forecasted.

Impacts - If actual population and/or development growth is higher, it may put pressure on the council to provide additional infrastructure and services. If actual population growth is lower it may result in surplus capacity in existing or planned infrastructure and services.

Population and development growth is affected by a range of external factors, most of which are outside the council's control or influence. Depending on infrastructure contracts, the council may be able to reduce or delay some of the capital expenditure to cater for growth.

Inflation

Auckland Council uses a number of information sources (both internal and external) to inform projections of inflationary impacts on its costs and revenues.  This includes projections for both Consumer Price Index (CPI) and other specific price movements faced by the council.

The updated inflation rates for 2016/2017 operating expenditure are:

Staff costs

0.7%

Other

0.8%

Inflation rates for capital expenditure range from 1.8 to 2.8 per cent.

Level of uncertainty - Moderate

Risk - actual inflation is different from forecast inflation

Impacts - If inflation is higher than projected the cost of providing services would be higher than planned. If inflation is lower than projected the cost of providing services would be lower.

Interest rates

Auckland Council's Treasury and Transactional Services department has provided interest rate projections for the plan, based on an assessment of market yields and anticipated borrowing requirements.

The council manages its risk to interest rate increases in the short-term to provide some certainty for cost of its borrowings.

The council has assumed that it maintains its AA credit rating in preparing the interest rate projections. For the 2016/17 year the forecast average interest rate on council borrowing is 5.60 per cent, and on cash holdings is 2 per cent.

Level of uncertainty - Low

Risk - That prevailing interest rates differ significantly from that forecasted in this plan

Impacts - Increases in interest rates flow through to higher debt servicing costs and higher rates funding requirements. The council's treasury group has mitigated these risks with a prudent hedging programme.

Asset sales

Council is forecasting of 87 million asset sales in 2016/17. This is an adjusted target from the LTP to reflect a partial carry forward of the prior year target. These are primarily land and buildings which are not needed for providing the council services, not providing a market rental income, are poorly utilised or simply located in the wrong place.

Level of uncertainty - Moderate

Risks - That sufficient disposals are not identified or realised to achieve the targets set

Impacts - If the level of asset sales are higher or lower than forecast it will result in changes to the levels of debt repayments that can be made and consequentially to the council's interest cost.

Note 3: Reconciliation between prospective statement of comprehensive revenue and expenditure and prospective funding impact statement

$000

Financial year ending 30 June

Long-term Plan

2015/16

Long-term Plan

2016/17

Annual

Plan

2016/17

Variance 2016/17

Operating surplus/ (deficit) after income tax per Prospective statement of comprehensive revenue and expenditure

226,448

377,923

330,000

(47,923)

Items recognised as income in Prospective statement of comprehensive revenue and expenditure and as capital expenditure funding sources in Prospective funding impact statement:

blank

blank

blank

blank

Capital subsidies

(172,279)

(246,291)

(240,362)

5,929

Development contributions

(164,834)

(198,800)

(163,318)

35,482

Non-cash items recognised in Prospective statement of comprehensive revenue and expenditure and not included in Prospective funding impact statement:

blank

blank

blank

blank

Depreciation

823,205

871,836

885,370

13,534

Depreciation of make good provision added back in Prospective funding impact statement

0

0

(2,213)

(2,213)

Discounting of provisions

12,195

10,493

12,849

2,357

Recognition of revenue from vested assets

(169,930)

(186,533)

(195,852)

(9,319)

Amortisation of prepaid leases

(564)

(729)

(729)

0

Other reconciling items:

blank

blank

blank

blank

Share of equity accounted surplus from associates not distributed by way of dividends to Auckland Council

(4,492)

(4,518)

(5,122)

(604)

Prepaid lease revenue recognised in the Prospective funding impact statement

4,800

5,200

6,210

1,010

Income tax recognised in the Prospective statement of comprehensive revenue and expenditure and not included in Prospective funding impact statement

16,310

16,533

17,599

1,066

Operating funding surplus/ (deficit) per Prospective funding impact statement

570,859

645,114

644,432

(681)

Note 4: Prospective prudential financial ratios

Auckland Council group consolidated

This plan is prepared on a group basis.  For the purposes of calculating the ratios under its Financial Strategy, Auckland Council removes Watercare from the group financial information.  The information below summarises how each of these prudential ratios are calculated based on the prospective financial information contained in this plan and provides a year by year comparison against the ratio limits.

Borrowing

$000

Financial year ending 30 June

Notes

Long-term Plan 2015/16

Long-term Plan 2016/17

Annual Plan 2016/17

Variance 2016/17

Auckland Council Group borrowing

blank

8,046,305

8,850,453

8,765,490

(84,963)

Less Watercare Services Limited

1

(1,731,442)

(1,939,379)

(1,669,495)

269,884

Other adjustments:

blank

blank

blank

blank

blank

Liquid assets (Diversified Assets Portfolio)

2

(365,956)

(365,956)

(265,760)

100,196

Electric Motor Units (trains) borrowing (NZTA share)

3

(278,262)

(278,262)

(294,919)

(16,657)

Cash and cash equivalents

blank

(240,000)

(240,000)

(329,518)

(89,518)

Net borrowing

blank

5,430,645

6,026,856

6,205,798

178,942

Net borrowing to total revenue limit (less than 275%)

blank

7,495,609

8,145,561

8,067,307

(78,254)

Revenue

$000

Financial year ending 30 June

Notes

Long-term Plan 2015/16

Long-term Plan 2016/17

Annual Plan 2016/17

Variance 2016/17

Total rates per Prospective statement of comprehensive revenue and expenditure

blank

1,571,188

1,646,308

1,636,654

(9,654)

Add back internal rates elimination

blank

44,949

46,396

44,576

(1,820)

Gross rates

blank

1,616,137

1,692,704

1,681,230

(11,474)

Total revenue per Prospective statement of comprehensive revenue and expenditure

blank

3,657,679

4,050,446

3,968,914

(81,532)

Adjustments:

blank

blank

blank

blank

blank

Less back vested assets

blank

(169,930)

(186,533)

(195,852)

(9,319)

Add back internal rates elimination

blank

44,949

46,396

44,576

(1,820)

Add back dividend elimination reflected in share of associate's surplus

blank

38,950

41,420

49,987

8,567

Less development contributions to fund capital expenditure

4

(132,115)

(161,271)

(123,437)

37,834

Less subsidies and grants to fund capital expenditure

blank

(172,279)

(246,291)

(240,362)

5,929

Gross Group Operating Revenue

blank

3,267,254

3,544,167

3,503,826

(40,341)

Less Watercare Services Limited

1

(519,220)

(561,423)

(550,510)

10,913

Other adjustments:

blank

blank

blank

blank

blank

Electric Motor Units (trains) Revenue (NZTA payments)

3

(22,358)

(20,722)

(19,750)

972

Adjusted revenue for ratio calculation

blank

2,725,676

2,962,022

2,933,566

(28,456)

Interest

$000

Financial year ending 30 June

Notes

Long-term Plan 2015/16

Long-term Plan 2016/17

Annual Plan 2016/17

Variance 2016/17

Auckland Council Group interest expense

blank

428,427

475,126

452,550

(22,576)

Auckland Council Group interest income

blank

(5,383)

(5,629)

(5,394)

235

Less Watercare Services Limited

1

(96,708)

(107,232)

(91,781)

15,451

Other adjustments:

blank

blank

blank

blank

blank

Electric Motor Units (trains) Interest (NZTA funded)

3

(19,417)

(17,720)

(16,781)

939

Net interest expense

blank

306,919

344,545

338,594

(5,951)

Net interest to total revenue limit (less than 15%)

blank

408,851

444,303

440,035

(4,268)

Net interest to total rates limit (less than 25%)

blank

404,034

423,176

420,308

(2,869)

Ratios

$000

Financial year ending 30 June

Notes

Long-term Plan 2015/16

Long-term Plan 2016/17

Annual Plan 2016/17

Variance 2016/17

Net debt as a percentage of total revenue

blank

199.2%

203.5%

211.5%

8.1%

Net interest as a percentage of total revenue

blank

11.3%

11.6%

11.5%

-0.1%

Net interest as a percentage of annual rates income (debt secured under debenture)

blank

19.0%

20.4%

20.1%

-0.2%

Notes:

1. Watercare is excluded from the calculation of prudential ratios as it is not reliant on Auckland Council to fund its operation.

2. The Diversified Financial Assets Portfolio is a portfolio of liquid assets, for the purposes of the prudential ratios the value of this portfolio is offset against borrowings.

3. Borrowing, revenue and interest have been adjusted for the purchase of Electric Motor Units for Auckland Transport for which there is a dedicated loan from central government.

4. Development Contributions (DCs) are recognised as operating revenue where they are charged to fund interest costs on DC-related borrowing.

Note 5: Reserve funds

Auckland Council Group

The Local Government Act 2002 requires the annual plan to identify each reserve set aside by the council, the purpose of each fund, the activities to which each fund relates and the funding flows for the period of the plan.

 

Reserve

Purpose

Activities

Cash flow hedge reserve

Gains recognised as balance date revaluation of hedged funds

blank

Available-for-sale investment revaluation reserve

Gains from revaluation of the Diversified Financial Assets portfolio

blank

Share of associates' reserves

Recognition in group accounts of associated' reserves

blank

Asset revaluation reserve

Accumulated gains from asset revaluation

blank

Restricted equity reserves

blank

blank

Statutory funds (Off street parking)

Funds accumulated under legislation (primarily related to subdivisions or off-street parking).

Parking and enforcement

Trust and bequests

These trusts are primarily related to assets held by council. The trust deeds restrict council's action in relation to these assets.

Various

Other restricted equity

Reserve funds related to particular projects or assets whereby council is restricted in its decision-making ability.

Various

Targeted rates reserves

blank

blank

Central City targeted Rate reserve

Targeted rate collected for enhancement of central business district as a place to work, live, visit and do business.

Regional planning

Glorit Flood Gate Restoration targeted rate reserve

Targeted rate being collected to recover the costs of the restoration of the Glorit flood gate.

Stormwater management

Riverhaven Drive targeted rate reserve

Targeted rate being collected to recover the costs of the construction of a road

Roads and footpaths

Jackson Crescent wastewater targeted rate reserve

Targeted rate collected to recover the cost of the council providing financial assistance to connect to a wastewater scheme.

Wastewater treatment

Point Wells wastewater targeted rate reserve

Targeted rate collected to recover the cost of the council providing financial assistance to connect to a wastewater scheme.

Wastewater treatment

Targeted Rate- Refuse

Targeted rate collected for delivery of refuse collection and disposal services, refuse recycling and waste transfer stations (ACC).

Solid waste and environmental services

Harbourview Orangihina Park targeted rate reserve

Targeted rate collected for development of Harbourview Orangihina Park.

Regional parks, sports and recreation

Targeted Rates Open Spaces/Volcanic Cones

Legacy targeted rates. No longer levied.

Regional parks, sports and recreation

Araparera

Araparera Forest harvest proceeds set aside for roading development in the area.

Property development

 

The funding flows for these reserves are:

 $000

As at 30 June

Annual Report

30 June 2015

Deposits

Withdrawals

Budget

30 June 2016

Deposits

Withdrawals

Annual Plan

30 June 2017

Cash flow hedge reserve

4,000

blank

blank

4,000

blank

blank

4,000

Available-for-sale investment revaluation reserve

10,000

blank

blank

10,000

blank

blank

10,000

Share of associates' reserves

280,000

blank

blank

280,000

blank

blank

280,000

Asset revaluation reserve

4,488,000

496,758

blank

4,984,758

926,790

blank

5,911,548

Restricted equity reserves

blank

 Blank

 Blank

 Blank

 Blank

 Blank

 Blank

Statutory funds

9,491

1,114

(470)

10,135

189

(3,211)

7,113

Trust and bequests

2,648

1,650

(27)

4,271

107

(24)

4,354

Other restricted equity

12,624

141

(839)

11,926

124

(1,789)

10,261

Total restricted equity

24,763

2,905

(1,336)

26,332

420

(5,024)

21,728

Targeted rates reserves

 Blank

 Blank

 Blank

 Blank

 Blank

 Blank

 Blank

City Centre targeted rate reserve

20,304

21,959

(19,929)

22,334

22,421

(20,269)

24,486

Glorit Flood Gate Restoration targeted rate reserve

(133)

38

(8)

(103)

38

(8)

(73)

Riverhaven Drive targeted rate reserve

(897)

90

(53)

(860)

108

(53)

(805)

Jackson Crescent wastewater targeted rate reserve

(4)

1

0

(3)

1

0

(2)

Point Wells wastewater targeted rate reserve

(118)

15

(4)

(107)

15

(4)

(96)

Targeted Rate - Refuse

0

0

0

0

0

0

0

Harbourview Orangihina Park targeted rate reserve

1,366

19

0

1,385

17

(692)

710

Targeted Rates Open Spaces/Volcanic Cones

2,500

0

(563)

1,937

0

(563)

1,374

Araparera

2,672

73

0

2,745

0

(1,373)

1,372

Total targeted rates

25,690

22,195

(20,557)

27,328

22,600

(22,962)

26,966

 

Note 6: Auckland Council (parent) financial statements

Prospective statement of comprehensive revenue and expenditure
Auckland Council parent

$000

Financial year ending 30 June

Long-term Plan

2015/16

Long-term Plan

2016/17

Annual

Plan

2016/17

Variance

2016/17

Notes

Revenue

blank

blank

blank

blank

blank

Rates

1,584,210

1,659,530

1,648,791

(10,739)

1

Fees and user charges

230,126

240,807

241,855

1,048

blank

Grants and subsidies

28,156

43,911

36,795

(7,116)

blank

Development and financial contributions

164,834

198,800

163,318

(35,482)

2

Vested assets

59,592

74,352

74,352

0

blank

Other revenue

166,410

167,888

181,892

14,004

3

Finance revenue

102,531

116,914

94,534

(22,380)

3,4

Total revenue

2,335,859

2,502,202

2,441,537

(60,665)

blank

Expenditure

blank

blank

blank

blank

blank

Employee benefits

481,101

484,072

480,892

(3,180)

blank

Depreciation and amortisation

233,805

252,898

255,760

2,862

blank

Grants, contributions and sponsorship

970,747

1,029,133

1,057,015

27,882

5

Other operating expenses

479,404

485,368

480,172

(5,196)

blank

Finance costs

375,900

416,511

415,170

(1,341)

6

Total expenditure

2,540,957

2,667,982

2,689,009

21,027

blank

Operating deficit

(205,098)

(165,780)

(247,472)

(81,692)

blank

Share of surplus in associates and joint ventures

0

0

2,383

2,383

blank

Operating deficit before income tax

(205,098)

(165,780)

(245,089)

(79,309)

blank

Income tax expense

0

0

0

0

blank

Deficit after income tax

(205,098)

(165,780)

(245,089)

(79,309)

blank

Deficit after income tax is attributable to:

blank

blank

blank

blank

blank

Ratepayers of Auckland Council

(205,098)

(165,780)

(245,089)

(79,309)

blank

Other comprehensive revenue

blank

blank

blank

blank

blank

Net gain on revaluation of property, plant and equipment

102

584,794

111

(584,683)

7

Total other comprehensive revenue

102

584,794

111

(584,683)

blank

Total comprehensive revenue/ (expenditure)

(204,996)

419,014

(244,978)

(663,992)

blank

Total comprehensive revenue/ (expenditure) is attributable to:

blank

blank

blank

blank

blank

Ratepayers of Auckland Council

(204,996)

419,014

(244,978)

(663,992)

blank

Notes to variances in the previous table:

1. The lower rates revenue reflects the movement from a 3.2 per cent average general rates increase to existing ratepayers to 2.4 per cent.

2. Population growth is continuing to drive growth in Development contribution revenue but at a level lower than that projected in the Long-term Plan.

3. The restructuring of loans from the parent to CCOs to equity has resulted in an increase in other revenue, in the form of dividend, and a decrease in finance revenue.

4. A reduction in the projected capital expenditure for Watercare Services Limited will result in lower borrowings by this CCO, through the parent and therefore lower finance revenue.

5. The increase in grants and contributions compared to the long-term plan is due to increased capital expenditure funding to Auckland Transport.

6. Finance costs are lower than projected in the long-term plan due to a decrease in forecast interest rates, combined with lower debt levels.

7. Significant increases in property values across Auckland necessitated an early revaluation of council land and buildings in 2015/2016. This, along with the reassessment of the useful lives of some transport assets, is the primary driver in the increase in projected depreciation expenditure. The early revaluation also results in a lower projected net gain on revaluation for 2016/2017.

 

Prospective statement of changes in equity
Auckland Council parent

$000

Financial year ending 30 June

Long-term Plan2015/16

Long-term Plan2016/17

Annual

Plan

2016/17

Variance 2016/17

Notes

Contributed equity

blank

blank

blank

blank

blank

Opening balance

26,569,092

26,569,092

26,569,092

0

blank

Surplus after income tax

0

0

0

0

blank

Other comprehensive revenue

0

0

0

0

blank

Total comprehensive revenue

0

0

0

0

blank

Transfer to/ (from) reserves

0

0

0

0

blank

Balance as at 30 June

26,569,092

26,569,092

26,569,092

0

blank

Accumulated funds

blank

blank

blank

blank

blank

Opening balance

(29,530)

(235,015)

(236,056)

(1,041)

blank

Deficit after income tax

(205,098)

(165,780)

(245,089)

(79,309)

1

Other comprehensive revenue

0

0

0

0

blank

Total comprehensive expenditure

(205,098)

(165,780)

(245,089)

(79,309)

blank

Transfer to/ (from) reserves

(387)

4,672

4,964

292

blank

Balance as at 30 June

(235,015)

(396,123)

(476,181)

(80,058)

blank

Reserves

blank

blank

blank

blank

blank

Opening balance

1,384,630

1,385,119

2,094,208

709,089

2

Surplus after income tax

0

0

0

0

blank

Other comprehensive revenue

102

584,794

111

(584,683)

2

Total comprehensive revenue

102

584,794

111

(584,683)

blank

Transfer to/ (from) reserves

387

(4,672)

(4,964)

(292)

blank

Balance as at 30 June

1,385,119

1,965,241

2,089,355

124,114

blank

Total equity

blank

blank

blank

blank

3

Opening balance

27,924,192

27,719,196

28,427,244

708,048

blank

Deficit after income tax

(205,098)

(165,780)

(245,089)

(79,309)

blank

Other comprehensive revenue

102

584,794

111

(584,683)

blank

Total comprehensive revenue/ (expenditure)

(204,996)

419,014

(244,978)

(663,992)

blank

Transfer to/ (from) reserves

0

0

0

0

blank

Balance as at 30 June

27,719,196

28,138,210

28,182,266

44,056

blank

Notes to variances in the above table:

1. For variances in surplus after income tax and other comprehensive revenue refer to notes on the Prospective statement of comprehensive revenue and expenditure.

2. The variance on reserves opening balance and movement is due to the early revaluation of council land and buildings in 2015/16 due to large increases in property values across Auckland.

3. There is no minority interest in the group. Total equity represents ratepayer equity.

Prospective statement of financial position
Auckland Council parent

$000

Financial year ending 30 June

Long-term Plan

2015/16

Long-term Plan

2016/17

Annual

Plan

2016/17

Variance

2016/17

Notes

ASSETS

blank

blank

blank

blank

blank

Current assets

blank

blank

blank

blank

blank

Cash and cash equivalents

225,000

225,000

282,441

57,441

1

Receivables and prepayments

140,622

150,190

212,845

62,655

1

Other financial assets

500,556

500,556

287,884

(212,672)

1,2

Derivative financial instruments

39,291

39,291

811

(38,480)

1

Inventories

4,552

4,552

4,609

57

blank

Non-current assets held for sale

65,013

52,651

52,651

0

blank

Total current assets

975,034

972,240

841,241

(130,999)

blank

Non-current assets

blank

blank

blank

blank

blank

Receivables and prepayments

84,931

90,710

15,651

(75,059)

1

Other financial assets

1,864,265

2,239,967

1,912,122

(327,845)

1,3

Derivative financial instruments

98,126

98,126

198,018

99,892

1

Property, plant and equipment

12,076,564

12,903,288

13,059,276

155,988

1

Intangible assets

247,502

246,463

282,448

35,985

1

Biological assets

1,764

1,764

1,704

(60)

blank

Investment property

94,301

94,301

102,105

7,804

blank

Investments in associates and joint ventures

4,564

4,564

17,672

13,108

1,3

Investments in subsidiaries

20,621,738

20,621,738

21,178,513

556,775

blank

Deferred tax asset

0

0

0

0

blank

Total non-current assets

35,093,755

36,300,921

36,767,509

466,588

blank

TOTAL ASSETS

36,068,789

37,273,161

37,608,750

335,589

blank

LIABILITIES

blank

blank

blank

blank

blank

Current liabilities

blank

blank

blank

blank

blank

Employee entitlements

49,061

49,364

50,204

840

blank

Payables and accruals

514,796

515,798

678,975

163,177

1

Borrowings

1,274,699

1,409,017

1,408,329

(688)

2

Derivative financial instruments

40,217

40,217

1,198

(39,019)

1

Tax payable

0

0

0

0

blank

Provisions

59,506

47,410

55,389

7,979

blank

Other current liabilities

20,716

35,818

0

(35,818)

1

Total current liabilities

1,958,995

2,097,624

2,194,095

96,471

blank

Non-current liabilities

blank

blank

blank

blank

blank

Employee entitlements

1,928

1,940

1,780

(160)

blank

Payables and accruals

56,881

56,985

50,261

(6,724)

blank

Borrowings

5,900,598

6,578,953

6,616,980

38,027

2,4

Derivative financial instruments

173,214

173,214

326,840

153,626

1

Provisions

257,977

226,235

236,528

10,293

1

Total non-current liabilities

6,390,598

7,037,327

7,232,389

195,062

blank

TOTAL LIABILITIES

8,349,593

9,134,951

9,426,484

291,533

blank

NET ASSETS

27,719,196

28,138,210

28,182,266

44,056

blank

EQUITY

blank

blank

blank

blank

blank

Contributed equity

26,569,092

26,569,092

26,569,092

0

blank

Accumulated funds

(235,015)

(396,123)

(476,181)

(80,058)

blank

Reserves

1,385,119

1,965,241

2,089,355

124,114

blank

Total ratepayers equity

27,719,196

28,138,210

28,182,266

44,056

blank

Minority interests

0

0

0

0

blank

TOTAL EQUITY

27,719,196

28,138,210

28,182,266

44,056

blank

Notes to variances in the previous table:

1. Variances are due to the updating of opening balances to reflect balances in the audited 2014/2015 annual accounts.

2. The anticipated increase in capital drawdown of the diversified financial asset portfolio reduces the projected level of financial assets and of borrowings. 

3. A number of loans from the parent to Council Controlled Organisations have been converted, during 2015/2016, into equity.  This has resulted in a decrease in non-current other financial assets and an increase in investments in subsidiaries.

4. The increase in borrowings compared to the long-term plan is mainly due to lower development contribution revenue, increased capital funding for transport activities and refinancing of ACIL external borrowings through council. This is partially offset by lower borrowings on behalf of Watercare services Limited.

Prospective statement of cash flow
Auckland Council parent

$000

Financial year ending 30 June

Long-term Plan

2015/16

Long-term Plan

2016/17

Annual

Plan

2016/17

Variance

2016/17

Notes

Cash flows from operating activities

blank

blank

blank

blank

1

Receipts from rates revenue

1,567,990

1,648,161

1,639,226

(8,935)

blank

Receipts from customers and other services

497,681

556,079

489,106

(66,973)

blank

Interest received

102,531

116,914

94,534

(22,380)

blank

Dividend received

66,364

70,867

92,569

21,702

blank

Payments to suppliers and employees

(1,964,023)

(2,036,382)

(2,064,722)

(28,340)

blank

Interest paid

(363,705)

(406,018)

(404,533)

1,485

blank

Net cash from operating activities

(93,162)

(50,379)

(153,820)

(103,441)

blank

Cash flows from investing activities

blank

blank

blank

blank

blank

Proceeds from sale of other financial assets

20,125

20,483

100,024

79,541

2

Acquisition of other financial assets

(4,512)

(5,414)

(5,414)

0

blank

Advances of loans to related parties

(213,231)

(361,288)

(262,126)

99,162

3

Sale of property, plant and equipment, investment property and intangible assets

68,875

65,013

85,300

20,287

4

Purchase of property, plant and equipment, investment property and intangible assets

(553,978)

(472,088)

(591,862)

(119,774)

5

Equity investment in subsidiaries and associates

0

0

0

0

blank

Advances to external parties

(9,000)

(9,000)

(9,000)

0

blank

Net cash from investing activities

(691,721)

(762,294)

(683,078)

79,216

blank

Cash flows from financing activities

blank

blank

blank

blank

blank

Proceeds from borrowings

1,671,242

2,087,372

2,095,897

8,525

blank

Repayment of borrowings

(886,359)

(1,274,699)

(1,258,999)

15,700

blank

Net cash from financing activities

784,883

812,673

836,898

24,225

blank

Net increase/(decrease) in cash and cash equivalents and bank overdraft

0

0

0

0

blank

Cash and cash equivalents and bank overdraft at beginning of the year

225,000

225,000

282,441

57,441

6

Cash and cash equivalents and bank overdrafts at end of the year

225,000

225,000

282,441

57,441

blank

Notes to variances in the above table:

1. Variances in cash flows from operating activities reflect the updated projections included in the Prospective statement of comprehensive revenue and expenditure.

2. The increase in proceeds from sale of financial other financial assets compared to the long-term plan is due to the anticipated increase in capital drawdown of the diversified financial asset portfolio.

3. The decrease in loans to related parties is due to lower projected capital expenditure projections by Watercare Services Limited.

4. The asset sales target is an adjusted from the long-term plan to reflect a partial carry forward of the prior year target.

5. The increase in purchase of property, plant and equipment is mainly due to changes in the timing of capital expenditure.

6. The increase in cash is due to the updating of opening balances to reflect balances in the audited 2014/2015 annual accounts.

 

Note 7: Depreciation and amortisation by Group of Activities

$000

Financial year ending 30 June

Long-term Plan

2015/16

Long-term Plan

2016/17

Annual

Plan

2016/17

Variance

2016/17

Regional governance

120

117

253

136

Local governance

120

178

0

(178)

Regional planning

2,297

2,735

2,921

186

Investment

27,513

28,633

27,512

(1,121)

Property Development

0

0

0

0

Economic Growth and Visitor Economy

707

802

1,198

396

Waterfront development

10,678

11,553

11,182

(371)

Regulation

2,878

3,570

2,502

(1,068)

Solid Waste and Environmental Services

2,839

3,894

4,096

202

Stormwater management

55,433

54,716

52,770

(1,946)

Water supply

93,872

98,471

97,428

(1,043)

Wastewater treatment

123,251

129,559

129,424

(135)

Public transport and travel demand management

67,088

73,555

84,424

10,869

Roads and footpaths

238,079

247,403

245,092

(2,311)

Parking and enforcement

8,296

8,362

8,462

100

Local planning

393

1,247

0

(1,247)

Regional community services

15,302

16,679

19,540

2,861

Local community services

1,605

2,760

1,256

(1,504)

Regional facilities

19,917

20,600

24,888

4,288

Regional Parks, Sport and Recreation

55,916

58,775

67,428

8,653

Local environmental management

14

24

0

(24)

Local Parks, Sport and Recreation

6,244

11,722

756

(10,966)

Organisational support

90,643

96,481

104,238

5,546

Total depreciation and amortisation per Prospective statement of comprehensive revenue and expenditure

823,205

871,836

885,370

11,323

> Back to contents list

3.3 Prospective funding impact statement

3.3.1 Prospective consolidated funding impact statement

Auckland Council group consolidated

$000

Financial year ending 30 June

Long-term Plan

2015/16

Long-term Plan

2016/17

Annual plan

2016/17

Sources of operating funding:

blank

blank

blank

General rates, UAGCs, rates penalties

1,393,889

1,461,018

1,453,848

Targeted rates

177,299

185,291

182,806

Subsidies and grants for operating purposes

255,056

266,915

259,607

Fees and charges

1,143,073

1,303,193

1,227,958

Interest and dividends from investments

47,978

50,731

5,394

Local authorities fuel tax, fines, infringement fees and other receipts

176,528

197,563

295,234

Total operating funding

3,193,823

3,464,711

3,424,847

Applications of operating funding:

blank

blank

blank

Payment to staff and suppliers

2,182,589

2,331,345

2,318,454

Finance costs

428,417

475,129

452,550

Other operating funding applications

11,958

13,123

9,411

Total applications of operating funding

2,622,964

2,819,597

2,780,415

Surplus (deficit) of operating funding

570,859

645,114

644,432

Sources of capital funding:

blank

blank

blank

Subsidies and grants for capital expenditure

172,279

246,292

240,363

Development and financial contributions

164,834

198,799

163,319

Increase (decrease) in debt

881,547

804,144

833,957

Gross proceeds from sale of assets

69,172

67,120

87,407

Lump sum contributions

0

0

0

Other dedicated capital funding

0

0

0

Total sources of capital funding

1,287,832

1,316,355

1,325,046

Application of capital funding:

blank

blank

blank

Capital expenditure:

blank

blank

blank

- to meet additional demand

616,023

569,282

704,591

- to improve the level of service

617,331

669,229

667,275

- to replace existing assets

568,386

672,765

573,467

Increase (decrease) in reserves

53,854

54,331

62,431

Increase (decrease) in investments

3,097

(4,138)

(38,286)

Total applications of capital funding

1,858,691

1,961,469

1,969,478

Surplus (deficit) of capital funding

(570,859)

(645,114)

(644,432)

Funding balance

0

0

0

 

3.3.2 Rating mechanism

This section sets out how the council will set its rates for 2016/2017. It explains the basis on which each ratepayer's rating liability will be assessed. In addition, it covers the council's early payment discount policy.

Background

After considering feedback from consultation on how the rates requirement for both general rates and the Interim Transport Levy (ITL) should be shared amongst residential, farm/lifestyle and business ratepayers the council has decided to maintain the position on these issues set out in the Long-term Plan 2015-2025. The council has set the general rates increase for 2016/2017 at 2.4 per cent. This means all residential and farm/lifestyle ratepayers will have an overall combined (general rates and ITL) increase of approximately 2.5 per cent and all business ratepayers approximately 1.9 per cent[1] .

The council's general rate is made up of the Uniform Annual General Charge (UAGC) and the value-based general rate. Revenue from the general rate is used to fund the council activities that are deemed to generally and equally benefit Auckland and on activities which user pays is not applied.

The following table sets out the forecast rating base for Auckland Council as at 30 June 2016.

Capital value

$484,194,877,138

Land value

$289,058,616,918

Rating units

536,018

Separately used or inhabited parts of a property

595,795

How the increase in the rate requirement is applied

The increase in the general rate requirement will be split to maintain the proportion of the UAGC at around 13.4 per cent of the general rate. This is achieved by applying the general rates increase to the UAGC and rounding to the nearest dollar.

Uniform annual general charge (UAGC) and other fixed rates

The UAGC is a fixed rate that is used to fund general council activities. The council will apply the UAGC per separately used or inhabited part of a rating unit (SUIP). The definition of a separately used or inhabited part of a rating unit is set out in the following section.

Where two or more contiguous rating units are owned by the same person or persons, and are used jointly as a single unit, the ratepayer will be liable for only one uniform annual general charge.

The council will also set the following targeted rates which will have a fixed rate component:

Funds raised by uniform fixed rates, which include the UAGC and any targeted rate set on a uniform fixed basis, cannot exceed 30 per cent of total rates revenue under Section 21 of Local Government (Rating) Act 2002.

A UAGC of $394 (including GST) will be applied per SUIP for 2016/2017. This is estimated to produce around $202.4 million (excluding GST) for 2016/2017.

The definition of a separately used or inhabited part of a rating unit

The council defines a separately used or inhabited part (SUIP) of a rating unit as 'any part of a rating unit that is separately used or inhabited by the ratepayer, or by any other person having a right to use or inhabit that part by virtue of a tenancy, lease, licence or any other agreement'. For the purposes of this definition, parts of a rating unit will be treated as separately used if they come within different differential categories, which are based on use. An example would be a rating unit that has a shop on the ground floor (which would be rated as business) and a residence upstairs (rated as residential).

Rating units used for commercial accommodation purposes, such as motels and hotels, will be treated for rating purposes as having one separately used or inhabited part, unless there are multiple businesses within the rating unit or another rating differential applies. Examples of how this might apply in practice are as follows:

A similar approach applies to universities, hospitals, rest homes and storage container businesses. Vacant land will be treated for rating purposes as having one separately used or inhabited part.

Rating units that have licence to occupy titles, such as some retirement villages or rest homes, will be treated as having a separately used or inhabited part for each part of the property covered by a licence to occupy.

Value-based general rate

The value-based general rate will be assessed on capital value and is assessed by multiplying the capital value of a rating unit by the rate per dollar that applies to that ratepayer differential group.

Rates differentials

General and targeted rates can be charged on a differential basis. This means that a differential is applied to the rate or rates so that some ratepayers may pay more or less than others with the same value rating unit.

The differential for urban residential land is set at 1.00. Business land attracts higher rates differentials than residential land. Lower differentials are applied to rural, farm/lifestyle and no road access land.

The council defines its rates differential categories using land use and location. The definition for each rates differential category is listed in the table below. For clarity, where different parts of a rating unit fall within different differential categories then rates will be assessed for each part according to its differential category. Each part will also be classified as being a separate SUIP (see definition above).

Rates differential definitions

Differential group

Definition

Urban business

Land in the Metropolitan Urban Limit (MUL), including vacant land that has a land use classification of commercial, industrial, transport, utility or public communal - licensed. Also includes any land that is used for community services, but which is used for commercial, or governmental purposes, or which is covered by a liquor licence

Urban residential

Land in the MUL, as well as land within the Pukekohe township that is used exclusively or almost exclusively, for residential purposes, and includes tenanted residential land, rest homes and geriatric hospitals. It excludes hotels, motels, serviced apartments, boarding houses and hostels.(1) Land used for community services and used by a not for profit ratepayer for the benefit of the community will be charged the residential rate (this does not include land covered by a liquor licence)

Rural business

Land outside the MUL, including vacant land, that has a land use classification of commercial, industrial, transport, utility network(2), or public communal - licensed. Also includes any land that is used for community services, but which is used for commercial, or governmental purposes, or which is covered by a liquor licence

Rural residential

Land outside the MUL that is used exclusively or almost exclusively for residential purposes, and includes tenanted residential land, rest homes and geriatric hospitals. It excludes hotels, motels, serviced apartments, boarding houses and hostels (1). Land used for community services and used by a not for profit ratepayer for the benefit of the community will be charged the residential rate (this does not include land covered by a liquor licence)

Farm and lifestyle

Any property with a land use classification of lifestyle or rural industry, excluding mineral extraction

No road access

Includes all land (irrespective of use) for which direct or indirect access by road is unavailable or provided for, and all land situated on the islands of Ihumoana, Kaikoura, Karamuramu, Kauwahia, Kawau, Little Barrier, Mokohinau, Motahaku, Motuketekete, Motutapu, Motuihe, Pakatoa, Pakihi, Ponui, Rabbit, Rakitu, Rangiahua, Rotoroa and The Noises

Uninhabitable islands

Includes land on all Hauraki Gulf islands and Manukau Harbour other than Waiheke, Great Barrier and the islands named in the definition of No road access.

Notes to table:

1. Hotels, motels, serviced apartments, boarding houses and hostels will be rated business except when the land owner provides proof that the land is used exclusively or almost exclusively for residential purposes. Land owners must provide proof of long-term stay (at least 90 days) for over 50 per cent of the units, as at 30 June each year. Proof should be in the form of a residential tenancy agreement or similar documentation.

2. Utility networks are classed as rural business differential. However, all other utility rating units are classified based on their land use and location.

The long-term differential strategy

The council is continuing to lower rates for businesses by applying the long-term differential strategy to its value-based general rate. In 2016/2017 the business differential ratios will be set so that 32.7 per cent of general rates (UAGC and value-based general rate) come from businesses. This will reduce in equal steps to 25.8 per cent by 2036/2037.

Moving to lower rates for businesses will involve progressively shifting some of the general rates from business ratepayers to other ratepayers. This is estimated to increase rates for residential and farm/lifestyle properties by a further 0.5 per cent for each year until 2036/2037. The council considers that increases greater than this would be less affordable for some residential ratepayers. The magnitude of the additional increase for residential and farm/lifestyle ratepayers caused by the long-term differential strategy may vary each year depending on the distribution of growth in the rating base across various ratepayer groups. Franklin businesses had a lower initial differential compared to other businesses. In 2016/2017 the Franklin business differential will reach parity with other businesses.

The table below sets out the rates differentials and rates in the dollar of capital value to be applied in 2016/2017. This is estimated to produce around $1,277 million (excluding GST) for 2016/2017.

 

Value-based general rate differentials for 2016/2017

Property category

Effective relative differential ratio for general rate for 2016/2017

Rate in the dollar for 2016/2017 (including GST) ($)

Share of value-based general rate (excluding GST) ($)

Share of value-based general rate (%)

Urban business

2.74

0.00693795

414,743,025

32.48

Urban residential

1.00

0.00253439

715,463,801

56.02

Rural business

2.46

0.00624415

48,268,288

3.78

Rural residential

0.90

0.00228095

37,289,294

2.92

Farm and lifestyle

0.80

0.00202751

61,066,115

4.78

No road access

0.25

0.00063360

270,910

0.02

Uninhabitable island(1)

0

0

0

0

Note to table:

1. Uninhabitable islands ratepayers are liable for the UAGC only, which is automatically remitted through the rate remission policy.

Rates for Watercare land and defence land will be assessed on land value as required under section 22 of the Local Government (Rating) Act 2002 and Section 73 of the Local Government (Auckland Council) Act 2009. These properties will pay a share of the value-based general rates requirement determined on their share of the city's land value rather than a share of the city's capital value as applies for other properties.  The rates in the dollar are set out in the following table.

Land value general rates

Differential group

Rate in the dollar for 2016/2017 (including GST)to be based on the land value of the property ($)

Urban business

0.01493053

Rural business

0.01343748

Targeted rates

The council does not have a lump sum contribution policy and will not invite lump sum contributions for any targeted rate.

Interim Transport Levy
Background

The council is funding an accelerated transport programme from 2015/2016 to 2017/2018 to provide better transport outcomes than the basic programme consulted on for the Long-term Plan 2015-2025.

Activities to be funded

The Interim Transport Levy (ITL) will be used to help fund the capital costs of the accelerated transport programme.

The ITL will apply from 2015/2016 to 2017/2018.

How the rate will be assessed

A differentiated targeted rate will be applied as a fixed amount per SUIP on all rateable land except land classified as uninhabited Islands as defined for rating purposes. A targeted rate of $182.85 (including GST) per SUIP will be applied to all rateable land classified as business (Urban business and Rural business) as defined for rating purposes, and $113.85 (including GST) per SUIP to all rateable land not classified as business (Urban residential, Rural residential, Farm and lifestyle, and No road access) as defined for rating purposes. The fixed amounts will remain at this level for three years.  This is estimated to produce around $61.8 million (excluding GST) for 2016/2017, $9.1 million from business and $52.7 million from non-business.

Waste Management targeted rate
Background

The public benefit component of providing waste management services is funded through the general rate e.g. public litter bins.

The level of waste management services provided, the cost of providing those services, and how they are funded varies across Auckland. Where user charges apply, these will continue. The balance of funding required to provide waste management services will be met by a differentiated targeted rate. The targeted rate will differ depending on the level of service provided and the level of funding from user charges.

The council is implementing the Auckland Waste Management and Minimisation Plan. Information on the plan can be found on the council's website.

For 2016/2017 the council has increased the targeted rate for rural Franklin to fund a recycling service that begins on 1 November 2016.

Activities to be funded

The targeted rate for waste management is used to fund refuse collection and disposal services (including the inorganic refuse collection), refuse recycling, waste transfer stations and resource recovery centres.

How the rate will be assessed

For land outside of the district of the former Auckland City Council where a service is provided or available, the targeted rate for waste management will be charged on a per SUIP basis. See the UAGC section prior for the council's definition of a SUIP. Land which has an approved alternative service will not be charged a targeted rate for waste management.

For land within the district of the former Auckland City Council, the targeted rate for waste management will be charged based of the number and type of services supplied or available to each rating unit. For rating units made up of one SUIP, the council will provide one refuse collection service. For rating units made up of more than one SUIP, the council will provide the same service as was provided at 1 July 2016, unless otherwise informed by the owner of the rating unit (that is, at least one refuse collection service, and up to a maximum of one refuse collection service per SUIP). If additional recycling services are supplied then the additional recycling service rate will apply. Land which has an approved alternative service will be charged the waste service charge that excludes the approved alternative service or services.

In the future, the waste management targeted rate may be adjusted to reflect changes in the types and costs of providing waste management services to reflect the introduction of the Auckland Waste Management and Minimisation Plan.

The following table sets out the waste management targeted rates to be applied in 2016/2017. This is estimated to produce around $76.4 million (excluding GST) for 2016/2017.

Waste management rates

Differential group

Waste management targeted rate

Amount of targeted rate for 2016/2017(including GST) ($)

Charging basis

Share of targeted rate (excluding GST) ($)

Rating units in the former Auckland City

Waste management - full service

232.72

Per available service

32,596,748

Waste management - where refuse opt out applies

99.81

Per available service

117,774

Waste management - where recycling opt out applies

160.36

Per available service

6,275

Waste management - where both refuse and recycling opt out applies

27.45

Per available service

580,065

Waste management - additional recycling charge

72.36

Per service provided

52,475

Rating units in the former Franklin District(1)

Waste management - recycling service

72.36

Per SUIP

792,163

Rural rating units in the former Franklin District(2)

Waste management - recycling service (part-year)

48.24

Per SUIP

313,912

Rating units in the former Franklin District

Waste management - refuse service

32.33

Per SUIP

564,252

Rating units in the former Manukau City

Waste management

232.72

Per SUIP

21,744,859

Rating units in the former North Shore City and Waitākere City

Waste management

91.49

Per SUIP

13,429,251

Rating units in the former Papakura District

Waste management

104.69

Per SUIP

1,771,444

Rating units in the former Rodney District

Waste management

106.51

Per SUIP

4,396,764

Note to table:

1. The Franklin District recycling targeted rate applies to rating units in the Pukekohe, Waiuku and Clarks Beach / Waiau Pa collection areas.

2. The Rural Franklin District recycling targeted rate applies to rating units outside the Pukekohe, Waiuku and Clarks Beach / Waiau Pa collection areas.

City centre targeted rate
Background

The City Centre targeted rate is to help fund the development and revitalisation of the city centre. The rate applies to business and residential land in the City Centre area.

Activities to be funded

The City Centre redevelopment programme aims to enhance the city centre as a place to work, live, visit and do business. It achieves this by providing a high-quality urban environment, promoting the competitive advantages of the city centre as a business location, and promoting the city centre as a place for high-quality education, research and development. The programme intends to reinforce and promote the city centre as a centre for arts and culture, with a unique identity as the heart and soul of Auckland.

The targeted rate will continue until 2024/2025 to cover capital and operating expenditure generated by the projects in the City Centre redevelopment programme. From 2016/2017, unspent funds from the targeted rate will be used to transition the depreciation and consequential operating costs of capital works to the general rate so that from 2019/2020 these costs will be entirely funded from general rates.

How the rate will be assessed

A differentiated targeted rate will be applied to business and residential land, as defined for rating purposes, in the city centre. You can view a map of the city centre area at www.aucklandcouncil.govt.nz/rates or at any Auckland Council library or service centre.

A rate in the dollar of $0.00189405 (including GST) of rateable capital value will be applied to business land in 2016/2017. This is estimated to produce around $20.6 million (excluding GST) for 2016/2017.

A fixed rate of $58.54 (including GST) per SUIP will be applied to residential land in 2016/2017. This is estimated to produce around $0.9 million (excluding GST) for 2016/2017.

Business Improvement District targeted rates
Background

Business Improvement Districts (BID) are areas within Auckland where local businesses have agreed to work together, with support from the council, to improve their business environment and attract new businesses and customers. The funding for these initiatives comes from BID targeted rates, which the businesses within a set boundary have voted and agreed to pay to fund BID projects and activities.

Activities to be funded

The main objectives of the BID programmes are to enhance the physical environment, promote business attraction, retention and development, and increase employment and local business investment in BID areas. The programmes may also involve community development, and are intended to identify and reinforce the unique identity of a place and to promote that identity as part of its development.

How liability will be assessed

The BID targeted rates will be applied to business land, as defined for rating purposes, that is located in defined areas in commercial centres outlined in the following table. For maps of the areas where the BID rates will apply, go to www.aucklandcouncil.govt.nz/rates.

The BID targeted rates will be assessed using a fixed rate and value-based rate on the capital value of the property. Each BID area can decide to have part of its budget funded from a fixed rate of between $0 to $250 (including GST) per rating unit. The remaining budget requirement will be funded from a value-based rate for each area and be applied as a rate in the dollar. There will be different rates for each BID programme.

The table below sets out the budgets and the rates for each BID area that the council will apply 2016/2017. This is estimated to produce around $15.7 million (excluding GST) for 2016/2017.

Business Improvement Districts fixed rates per rating unit and rates in the dollar of capital value

BID area

Budget for 2016/2017

(excluding GST) ($)

Amount to be funded by fixed charge for 2016/2017

(excluding GST) ($)

Fixed rate per rating unit for 2016/2017 (including GST) ($)

Amount to be funded by property value rate based on the capital value of the rating unit for 2016/2017 (excluding GST) ($)

Rate in the dollar for 2016/2017 to be multiplied by the capital value of the rating unit (including GST) ($)

Avondale

120,000

0

0.00

120,000

0.00145348

Birkenhead

187,000

0

0.00

187,000

0.00124071

Blockhouse Bay

56,530

0

0.00

56,530

0.00189800

Browns Bay

150,000

0

0.00

150,000

0.00065062

Devonport

120,000

18,043

250.00

101,957

0.00083762

Dominion Road

180,000

0

0.00

180,000

0.00083696

Ellerslie

144,000

0

0.00

144,000

0.00265433

Glen Eden

83,678

0

0.00

83,678

0.00129014

Glen Innes

166,250

0

0.00

166,250

0.00163569

Greater East Tāmaki

500,000

329,475

195.00

170,525

0.00004342

Heart of the City

4,211,624

0

0.00

4,211,624

0.00058100

Howick

152,174

0

0.00

152,174

0.00115113

Hunters Corner

126,407

0

0.00

126,407

0.00097756

Karangahape Road

381,350

0

0.00

381,350

0.00065545

Kingsland

210,000

0

0.00

210,000

0.00059865

Mairangi Bay

53,500

5,000

250.00

48,500

0.00133539

Māngere Bridge

28,140

0

0.00

28,140

0.00188364

Māngere East Village

6,100

0

0.00

6,100

0.00039300

Māngere Town

296,839

0

0.00

296,839

0.00516632

Manukau Central

217,957

0

0.00

217,957

0.00053787

Manurewa

138,997

0

0.00

138,997

0.00120568

Milford

132,000

0

0.00

132,000

0.00089400

Mt Eden Village

86,035

0

0.00

86,035

0.00080328

New Lynn

159,720

0

0.00

159,720

0.00067081

Newmarket

1,569,139

0

0.00

1,569,139

0.00089729

North Harbour

626,413

318,771

150.00

307,642

0.00011580

North West District

180,000

89,782

250.00

90,218

0.00033089

Northcote

120,000

0

0.00

120,000

0.00348423

Old Papatoetoe

113,090

0

0.00

113,090

0.00191715

Onehunga

405,077

0

0.00

405,077

0.00166822

Ōrewa

210,650

0

0.00

210,650

0.00110834

Ōtāhuhu

598,500

0

0.00

598,500

0.00101654

Ōtara

76,295

0

0.00

76,295

0.00159309

Panmure

422,759

0

0.00

422,759

0.00212543

Papakura

173,750

0

0.00

173,750

0.00087408

Parnell

700,000

0

0.00

700,000

0.00069001

Ponsonby

389,741

0

0.00

389,741

0.00073593

Pukekohe

402,150

0

0.00

402,150

0.00061541

Remuera

242,564

0

0.00

242,564

0.00147577

Rosebank

395,000

0

0.00

395,000

0.00047608

South Harbour

79,008

0

0.00

79,008

0.00059146

St Heliers

138,484

0

0.00

138,484

0.00143481

Takapuna

366,856

0

0.00

366,856

0.00048645

Te Atatu

82,000

0

0.00

82,000

0.00181102

Torbay

13,915

0

0.00

13,915

0.00101267

Uptown

180,000

0

0.00

180,000

0.00020349

Waiuku

110,000

0

0.00

110,000

0.00113461

Wiri

219,615

0

0.00

219,615

0.00048007

Total

15,723,307

761,071

blank

14,962,236

blank

Business Improvement Districts fixed rate per property and rates in the dollar of land value

Rates for Watercare land and defence land will be assessed on land value as required under section 22 of the Local Government (Rating) Act 2002 and Section 73 of the Local Government (Auckland Council) Act 2009. These properties will pay a share of the Business Improvement District value based rates requirement determined on their share of the BID areas land value rather than a share of the BID areas capital value as applies for other properties.  The rates in the dollar are set out in the following table.

BID

Fixed rate per rating unit for 2016/2017 (including GST) ($)

Rate in the dollar for 2016/2017 (including GST) to be based on the land value of the rating unit ($)

Greater East Tāmaki

195.00

0.00007980

Onehunga

0.00

0.00387688

Pukekohe

0.00

0.00132127

Rosebank

0.00

0.00107801

Māngere-Ōtāhuhu and Ōtara-Papatoetoe swimming pool targeted rates
Background

Auckland Council has a region-wide swimming pool pricing policy, whereby children 16 years and under have free access to swimming pool facilities and all adults are charged. These targeted rates fund free access to swimming pools for adults 17 years and over in the Māngere-Ōtāhuhu Local Board and Ōtara-Papatoetoe Local Board areas.

Activities to be funded

To fund the cost of free adult entry to swimming pool facilities in the Māngere-Ōtāhuhu Local Board and Ōtara-Papatoetoe Local Board areas.

How liability will be assessed

These local activity targeted rates apply to all residential land, as defined for rating purposes that are located in the Māngere-Ōtāhuhu Local Board and Ōtara-Papatoetoe Local Board areas.

How the rate will be assessed

The local activity targeted rate will be assessed using a fixed rate applied to each separately used or inhabited part of a residential property, as defined for rating purposes, in the Māngere-Ōtāhuhu Local Board and Ōtara-Papatoetoe Local Board areas. There will be a different fixed rate for each local board area.

The following table sets out the local activity targeted rates that apply in 2016/2017 for the Māngere-Ōtāhuhu Local Board and Ōtara-Papatoetoe Local Board areas. This is estimated to produce around $1 million (excluding GST) for 2016/2017.

Local board area

Local activity targeted rates: Fixed rate for each separately used or inhabited part of a rating unit for 2016/2017 (including GST) ($)

Revenue from the targeted rate (excluding GST) ($)

Māngere-Ōtāhuhu

30.86

494,162

Ōtara-Papatoetoe

28.97

531,180

Riverhaven Drive targeted rate

The council has constructed Riverhaven Drive for the benefit of the rating units in the immediate area. The construction of the road and the payment of the rate have been agreed with the association representing the owners of the rating units. The Riverhaven Drive targeted rate is used to repay the council for the cost of the road, including interest costs.

The targeted rate applies to the land which benefits from the construction of a road that provides access to the rating unit. The rate will apply until the cost of the project is recovered. The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year. The targeted rate will apply for 25 years (2006/2007 to 2030/2031). The outstanding balance will reduce each year as the principal is repaid.

The council will apply a uniform rate of $10,317.02 (including GST) per rating unit for 2016/2017. This is estimated to produce around $90,000 (excluding GST) for 2016/2017.

Glorit Flood Gate Restoration targeted rate

A targeted rate for three rating units, detailed below, to recover the cost of Glorit flood gate restoration. The rate will apply until the cost of the project is recovered. The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year. The targeted rate will apply for 10 years (2009/2010 to 2018/2019). The costs of works, together with interest and administration charges are apportioned on an area of benefit basis.

The following table sets out the Glorit Flood Gate Restoration targeted rates for 2016/2017. This is estimated to produce around $38,000 (excluding GST) for 2016/2017.

Glorit Flood Gate Restoration targeted rate

Valuation number

Legal description (abbreviated)

Area of benefit in hectares

Amount of targeted rate for 2016/2017

(including GST) ($)

00910-00102

Sec 27 SO 59120

245

40,689.21

00910-00502

Lot 5 DP 127940

2

332.15

00910-00400

Lot 3 DP 485231

17.5

2,906.37

Waitākere rural sewerage targeted rate

The Waitākere rural sewerage targeted rate is set as a uniform charge on all rating units in the Non-Drainage Area of the former district of the Waitākere City Council where there are on-site waste management systems that are scheduled to be inspected and/or pumped out by the council within the three-yearly cycle, to recover the costs of implementation of the On-site Waste Systems Management Plan. The uniform charge is levied in respect of each on site waste management system utilised in conjunction with the particular rating unit.

For 2016/2017 the council will apply a uniform rate of $188.46 (including GST) for each on-site waste management system utilised in conjunction with the rating unit. This is estimated to produce around $0.75 million (excluding GST) for 2016/2017.

Retro-fit your home targeted rate

The Retro-fit Your Home targeted rate is set on land that has received financial assistance from Auckland Council for the installation of clean heat, insulation, water conservation, mechanical extraction and fire place decommissioning in respect of the land.

The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year. The targeted rate will apply for nine years. The outstanding balance will reduce each year as the principal is repaid.

The targeted rate will apply as a rate in the dollar, which is multiplied against the ratepayer's outstanding balance as at 1 July each year. The rate in the dollar is set at different levels for each year that the ratepayer has been repaying the financial assistance.

The following table sets out the Retro-fit Your Home targeted rate that the council will apply in 2016/2017. This is estimated to produce around $5.4 million (excluding GST) for 2016/2017.

Retro-fit your home targeted rate

Year of repayment

Rate in the dollar for 2016/2017 to be multiplied by the ratepayers outstanding balance as at 1 July 2016 (including GST) ($)

1

0.14824703

2

0.16189566

3

0.17954399

4

0.20319261

5

0.23644248

On-site wastewater systems (septic tank) upgrades targeted rate

The On-site wastewater systems (septic tank) upgrades targeted rate is set on land that has received financial assistance from Auckland Council for the replacement or upgrade of failing on-site wastewater systems (septic tanks) in the west coast lagoons (Piha, Te Henga and Karekare) and Little Oneroa (Waiheke Island) catchments.

The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year. The targeted rate will apply for 15 years. The outstanding balance will reduce each year as the principal is repaid.

The targeted rate will apply as a rate in the dollar, which is multiplied against the ratepayer's outstanding balance as at 1 July each year. The rate in the dollar is set at different levels for each year that the ratepayer has been repaying the financial assistance.

Applications to join the scheme will be taken in the 2016/2017 year.  As a result rates will not be set until the 2017/2018 year.  No revenue will be collected in the 2016/2017 year.

Kumeu Huapai Riverhead wastewater targeted rate

The Kumeu Huapai Riverhead wastewater targeted rate is set on land that has received financial assistance from Auckland Council for the purchase and installation of equipment for pumping waste from the property to Watercare's pressurised wastewater scheme.

The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year. The targeted rate will apply for 15 years. The outstanding balance will reduce each year as the principal is repaid.

The targeted rate will apply as a rate in the dollar, which is multiplied against the ratepayer's outstanding balance as at 1 July each year. The rate in the dollar is set at different levels for each year that the ratepayer has been repaying the financial assistance.

The following table sets out the Kumeu Huapai Riverhead wastewater targeted rate that council will apply in 2016/2017. This is estimated to produce around $13,600 (excluding GST) for 2016/2017.

Kumeu Huapai Riverhead wastewater targeted rate

Year of repayment

Rate in the dollar for 2016/2017to be multiplied by the ratepayers outstanding balance as at 1 July 2016 (including GST) ($)

1

0.12136053

2

0.12648574

4

0.13948996

Point Wells wastewater targeted rate

The Point Wells wastewater targeted rate is set on land that received financial assistance to connect to the pressure wastewater collection (PWC) scheme in the Point Wells area.

The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year according to the amount of assistance provided. The targeted rate will apply for 15 years (2009/2010 to 2023/2024). The outstanding balance will reduce each year as the principal is repaid.

The following table sets out the Point Wells wastewater targeted rate that council will apply in 2016/2017. This is estimated to produce around $14,700 (excluding GST) for 2016/2017.

Point Wells wastewater targeted rate

Total assistance provided

Amount of targeted rate for 2016/2017 (including GST) ($)

$8,000

674.60

$8,500

716.76

$9,000

758.92

$9,500

801.08

$10,000

843.25

Jackson Crescent wastewater targeted rate

The Jackson Crescent wastewater targeted rate is set on the rating unit that received financial assistance to connect to the pressure wastewater collection (PWC) scheme in Jackson Crescent, Martins Bay area.

The council will charge interest on the financial assistance provided. The ratepayer will repay the financial assistance and interest on a table mortgage basis. The council will calculate the level of the targeted rate each year to fund the interest and principal repayment required for that year. The targeted rate will apply for 15 years (2009/2010 to 2023/2024). The outstanding balance will reduce each year as the principal is repaid.

The council will apply a uniform rate of $608.88 (including GST) per rating unit in 2016/2017. This is estimated to produce $529 (excluding GST) for 2016/2017.

 

Rates payable by instalment

Rates will be payable by four equal instalments due on:

It is council policy that any payments received will be applied to the oldest outstanding rates before being applied to the current rates.

Penalties on rates not paid by the due date

The council will apply a penalty of 10 per cent of the amount of rates assessed under each instalment in the 2016/2017 financial year that are unpaid after the due date of each instalment. Any penalty will be applied to unpaid rates on the day following the due date of the instalment.

A further 10 per cent penalty  calculated on former years' rate arrears to be added on the first business day of the new financial year (or five working days after the rates resolution is adopted, whichever is the later) and then again six months later.

Early payment discount policy
Objectives

The council encourages ratepayers to pay their rates in full by the date that their first instalment is due by providing a discount.

Conditions and criteria

Ratepayers will qualify for the discount rate from of their annual rates if all their rates are paid in full, together with any outstanding prior years' rates and penalties, by 5.00pm on the day their first rates instalment for the new financial year is due.

Delegation of decision-making

Decisions about applying the discount will be made by staff.

Review process

The council will set the rate of discount that ratepayers are eligible for on an annual basis. The discount will be set to return to those ratepayers making an early payment the interest cost saving to the council. The interest cost saving will be set based on the council's short term cost of borrowing for the financial year in which the discount will apply. In making this forecast the council will take into account current market interest rate forecasts provided by financial institutions. The reviewed discount rate will be adopted by a council resolution at the same time as other rates-related decisions are made as part of its annual plan or long-term plan decision making process.

If the council wants to make any significant change to the discount policy, it must consult with the public.

Discount in 2016/2017

The discount is 0.91 per cent for 2016/2017.

Sample properties

The following section is intended to provide examples of the individual rates for 2016/2017.The following targeted rates are not shown:

For more information on these and other rates please see the relevant section of the Rating mechanism.

General rates and Interim Transport Levy

The table below shows indicative general rates and Interim Transport Levy for fully rateable rating units with one SUIP at different values for each of the main differential categories. An extra UAGC charge and Interim Transport Levy should be added for each extra SUIP the rating unit has.

Differential category

Capital value

UAGC

(including GST) ($)

General rate (including GST) ($)

Interim Transport Levy

(including GST) ($)

Total rates (including GST) ($)

Urban - business (including urban Franklin business)

500,000

394

3,469

183

4,046

1,500,000

394

10,407

183

10,984

3,000,000

394

20,814

183

21,391

10,000,000

394

69,380

183

69,957

Urban - residential

500,000

394

1,267

114

1,775

750,000

394

1,901

114

2,409

1,000,000

394

2,534

114

3,042

1,500,000

394

3,802

114

4,310

Rural - business (including rural Franklin business)

500,000

394

3,122

183

3,699

1,500,000

394

9,366

183

9,943

3,000,000

394

18,732

183

19,309

10,000,000

394

62,442

183

63,019

Rural - residential

500,000

394

1,140

114

1,648

750,000

394

1,711

114

2,219

1,000,000

394

2,281

114

2,789

1,500,000

394

3,421

114

3,929

Farm/lifestyle

500,000

394

1,014

114

1,522

1,500,000

394

3,041

114

3,549

3,000,000

394

6,083

114

6,591

10,000,000

394

20,275

114

20,783

The following tables contain indicative values for the most common targeted rates. If a rating unit is liable for one of these, then the value shown should be added to the general rates and Interim Transport Levy figure from the table above to determine the total rates liability.

Waste management targeted rate

Most rating units are liable for waste management targeted rates. These vary depending on the former council area that the property is located.

Former council area

Service

Total amount of charges (including GST) ($)

Number of waste management charges

1

2

3

5

10

Auckland City

Full service

233

465

698

1,164

2,327

Recycling only

100

200

299

499

998

Refuse only

160

321

481

802

1,604

Basic service

27

55

82

137

275

Additional recycling

72

145

217

362

724

Franklin District

Recycling

72

145

217

362

724

Rural recycling (part-year)

48

96

145

241

482

Refuse

32

65

97

162

323

Manukau City

blank

233

465

698

1,164

2,327

North Shore City and Waitākere City

blank

91

183

274

457

915

Papakura District

blank

105

209

314

523

1,047

Rodney District

blank

107

213

320

533

1,065

City centre targeted rate

All business and residential rating units in the City Centre are liable for the City Centre targeted rate.

Business rating units located in the city centre area

Capital value

Rate (including GST) ($)

500,000

947

1,500,000

2,841

3,000,000

5,682

10,000,000

18,941

Residential rating units located in the city centre area

Number of separately used or inhabited parts

Rate (including GST) ($)

1

58.54

2

117.08

3

175.62

5

292.70

10

585.40

 

Swimming pool targeted rates

Residential rating units in Māngere-Ōtāhuhu and Ōtara-Papatoetoe local boards are liable for Swimming Pool targeted rates.

Residential rating units located in

 

Total targeted rate amount (including GST) ($)

Number of separately used or inhabited parts

1

2

3

5

10

Māngere-Ōtāhuhu

31

62

93

154

309

Ōtara-Papatoetoe

29

58

87

145

290

Waitākere rural sewerage targeted rate

Some residential rating units not connected to the wastewater system in the former Waitākere City area are liable for the Waitākere Rural Sewerage targeted rate.

Residential rating units located in

 

Number of septic tanks pumped out once every 3 years

Total targeted rate amount (including GST) ($)

1

2

3

5

10

Waitākere City that have septic tanks pumped out by council

188

377

565

942

1,885

Retro-fit your home targeted rate

Residential ratepayers who have taken advantage of the Retro-fit Your Home scheme repay the financial assistance provided via a targeted rate.

Outstanding balance at beginning of 2016/2017

Rate for first year of repayment (including GST) ($)

Rate for second year of repayment (including GST) ($)

Rate for third year of repayment (including GST) ($)

Rate for fourth year of repayment (including GST) ($)

Rate for fifth year of repayment (including GST) ($)

1,500

222

243

269

305

355

2,000

296

324

359

406

473

2,500

371

405

449

508

591

3,500

519

567

628

711

828

 

3.3.3 Financial reporting and prudence benchmarks

Annual plan disclosure statement for the year ending 30 June 2017

What is the purpose of this statement?

The purpose of this statement is to disclose the group's planned financial performance in relation to various benchmarks to enable the assessment of whether the group is prudently managing its revenues, expenses, assets, liabilities and general financial dealings.

The group is required to include this statement in its annual plan in accordance with the Local Government (Financial Reporting and Prudence) Regulations 2014 (the regulations). Refer to the regulations for more information, including definitions of some of the terms used in this statement.

Benchmark

Limit

Planned

Met

Rates affordability benchmark

blank

blank

blank

- income

$1,484 million

$1,479 million

Yes

- increases

3.5%

2.4%

Yes

Debt affordability benchmark

blank

blank

blank

- net debt as a percentage of total revenue

275%

211.5%

Yes

- net interest as a percentage of total revenue

15%

11.5%

Yes

- net interest as a percentage of annual rates income

25%

20.1%

Yes

Balanced budget benchmark

100%

99%

No

Essential services benchmark

100%

167%

Yes

Debt servicing benchmark

15%

12%

Yes

Notes
1. Rates affordability benchmark

For this benchmark:

The group meets the rates affordability benchmark if:

2. Debt affordability benchmark

For this benchmark, the group's planned borrowing is compared with the quantified limits on borrowing contained in the financial strategy included in the group's long-term plan.

The group meets the debt affordability benchmark if its planned borrowing is within each quantified limit on borrowing.

There are three quantified limits; they are:

The calculation of the above benchmarks can be found in Note 4 to our financial statements within Part 3 of this plan.

3. Balanced budget benchmark

For this benchmark, the group's planned revenue (excluding development contributions, vested assets, financial contributions, gains on derivative financial instruments, and revaluations of property, plant, or equipment) is presented as a proportion of its planned operating expenses (excluding losses on derivative financial instruments and revaluations of property, plant, or equipment).

The group meets the balanced budget benchmark if its revenue equals or is greater than its operating expenses.

Note: In line with the long-term plan, operating expenditure is projected to be higher than operating revenue. As discussed in the council's Revenue and Financing Policy, this is due to the moving to fully fund depreciation by 2025.

4. Essential services benchmark

For this benchmark, the group's planned capital expenditure on network services is presented as a proportion of expected depreciation on network services.

The group meets the essential services benchmark if its planned capital expenditure on network services equals or is greater than expected depreciation on network services.

5. Debt servicing benchmark

For this benchmark, the group's planned borrowing costs are presented as a proportion of planned revenue (excluding development contributions, vested assets, financial contributions, gains on derivative financial instruments, and revaluations of property, plant, or equipment).

Because Statistics New Zealand projects that the council's population is projected to grow faster than the national population growth rate, it meets the debt servicing benchmark if its planned borrowing costs equal or are less than 15 per cent of its planned revenue.

Additional information

The group's planned revenue includes net other gains, finance income, and net share of surpluses in associates and jointly-controlled entities.

The group's planned operating expenditure includes net other losses, and net share of deficits in associates and jointly-controlled entities.

Net debt refers to the group's financial liabilities less financial assets (excluding trade and other receivables).

Borrowing cost includes interest expense and losses on early close out of interest rate swaps, and excludes adjustments for time value of money.

Network infrastructure refers to infrastructure related to water supply, sewerage treatment and disposal, stormwater drainage, flood protection and control, roads and footpaths.

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Part 4: Summary of the Tūpuna Maunga Operational Plan 2016/2017

For each financial year the Tūpuna Maunga Authority and Auckland Council must agree an operational plan. The operational plan outlines how Council will carry out the day-to-day maintenance of the Tūpuna Maunga (ancestral mountains) under the direction of the Tūpuna Maunga Authority. This is a requirement under section 60 of the Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014.

The operational plan outlines the work programme for council for the financial year, which comprises of projects at a regional and individual maunga level. Importantly, the operational plan sets out how these individual projects contribute to delivery of the Tūpuna Maunga Authority's objectives and vision for the Tūpuna Maunga by linking them to one or more of the Tūpuna Maunga Values.

This Operational Plan covers the financial year 2016/02017 in detail, and indicative information for the next 10 years. The next operational plan will be adopted in 2017.

The Tūpuna Maunga Authority

The Tūpuna Maunga Authority is the co-governance entity established under an historic Treaty of Waitangi Settlement (the Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014) to administer 14 Tūpuna Maunga of Tāmaki Makaurau. The Tūpuna Maunga are held for the common benefit of the iwi/hapū of Ngā Mana Whenua and the other people of Auckland.

The Tūpuna Maunga Authority's bespoke co-governance structure recognises not only the important relationship Ngā Mana Whenua have with these sacred places, but also their importance to, and connection with, all the peoples of Auckland.  The Tūpuna Maunga Authority is a tangible expression of the spirit of partnership between Ngā Mana Whenua and Auckland Council.

The Tūpuna Maunga Authority has six representatives from Ngā Mana Whenua and six representatives from the Auckland Council. There is also a non-voting Crown representative appointed by the Minister for Arts, Culture and Heritage for a three year term, which can be extended for any period by agreement of the parties. 

The Tūpuna Maunga Authority members are:

Chair:
Paul Majurey, Ngā Mana Whenua o Tāmaki Makaurau (Marutūāhu Rōpū)

Deputy Chair:
Hon Christine Fletcher QSO, Auckland Council (Governing Body)

Members:
Ngarimu Blair, Ngā Mana Whenua o Tāmaki Makaurau (Ngāti Whātua Rōpū)
Bill Cashmore, Auckland Council (Governing Body)
Tipa Compain, Ngā Mana Whenua o Tāmaki Makaurau (Marutūāhu Rōpū)
Chris Darby, Auckland Council (Governing Body)
Glenda Fryer, Auckland Council (Deputy Chair - Albert-Eden Local Board)
Grant Hawke, Ngā Mana Whenua o Tāmaki Makaurau (Ngāti Whātua Rōpū)
Dennis Kirkwood, Ngā Mana Whenua o Tāmaki Makaurau (Waiohua-Tāmaki Rōpū)
Kit Parkinson, Auckland Council (Deputy Chair - Ōrākei Local Board)
Simon Randall, Auckland Council (Chair - Maungakiekie-Tāmaki Local Board)
Te Warena Taua MNZM, Ngā Mana Whenua o Tāmaki Makaurau (Waiohua-Tāmaki Rōpū)
Andrew Bignell, Crown Representative
 

Ngā Mana Whenua o Tāmaki Makaurau

The Tūpuna Maunga are owned by the 13 iwi/hapū of Ngā Mana Whenua o Tāmaki Makaurau through the collective's legal entity for the maunga, the Tūpuna Taonga Trust. The Tūpuna Taonga Trust is chaired by Karen Wilson and comprises of 6 appointed members representing the 13 iwi /hapū of Tāmaki Makaurau:

The Tūpuna Maunga

The Tūpuna Maunga included in the Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014 are listed below. Four of the Tūpuna Maunga are subject to alternative ownership and administration arrangements as described in the footnotes.

Tūpuna Maunga

Ownership

Administration

Matukutūruru / Wiri Mountain

Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau

Tūpuna Maunga Authority

Maungakiekie / One Tree Hill[2]

Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau

Tūpuna Maunga Authority

Maungarei / Mount Wellington

Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau

Tūpuna Maunga Authority

Maungauika / North Head[3]

Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau

Crown

Maungawhau / Mount Eden

Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau

Tūpuna Maunga Authority

Ōhinerau / Mount Hobson

Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau

Tūpuna Maunga Authority

Ōhuiarangi / Pigeon Mountain

Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau

Tūpuna Maunga Authority

Ōtāhuhu / Mount Richmond

Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau

Tūpuna Maunga Authority

Ōwairaka / Te Ahi-kā-a-Rakataura / Mount Albert

Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau

Tūpuna Maunga Authority

Puketāpapa / Pukewīwī / Mount Roskill

Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau

Tūpuna Maunga Authority

Rarotonga / Mount Smart[4]

Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau

Auckland Council

Takarunga / Mount Victoria

Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau

Tūpuna Maunga Authority

Te Kōpuke / Tītīkōpuke / Mount St John

Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau

Tūpuna Maunga Authority

Te Ara Pueru / Te Pane-o-Mataaho / Māngere Mountain[5]

Crown

Tūpuna Maunga Authority

Te Tātua a Riukiuta / Big King

Taonga Trust for Ngā Mana Whenua o Tāmaki Makaurau

Tūpuna Maunga Authority

 

Tūpuna Maunga Prioritised Projects 2016/17

Projects to be completed on the Tūpuna Maunga over the coming financial year are detailed within the Tūpuna Maunga Operational Plan 2016/17. Projects are organised through the Tūpuna Maunga Values, which provide a strategic framework to guide the Tūpuna Maunga Authority in making any decisions about the Tūpuna Maunga.  They are also prioritised according to the urgency and nature of the work, and availability of funding.

Table 1: Tūpuna Maunga prioritised projects 2016/17

Note: This table outlines a broad work Programme for the Tūpuna Maunga Authority.  It includes reference to policy, planning and strategy workstreams, as well capex and opex projects.

Tūpuna Maunga Value

Prioritised Projects

Short Term

1 - 3 years

Medium Term

4 - 7 years

Long Term

8 - 10 years

Wairuatanga / Spiritual

  • restore and recognise the relationship between the Maunga and its people
  • tread gently
  • recognise the tihi is sacred
  • treat the Maunga as taonga tuku iho - treasures handed down the generations

Integrated Management Plan which will set out how we value, manage, protect and restore the Tūpuna Maunga

X

Wairuatanga / Spiritual

  • restore and recognise the relationship between the Maunga and its people
  • tread gently
  • recognise the tihi is sacred
  • treat the Maunga as taonga tuku iho - treasures handed down the generations

Development of individual Tūpuna Maunga Management Plans

X

X

 

Mana Aotūroa / Cultural and Heritage

  • enable Mana Whenua role as kaitiaki over the Tūpuna Maunga
  • encourage culturally safe access
  • restoring customary practices and associated knowledge
  • recognise European and other histories, and interaction with the Maunga

Replanting on the tihi of Maungakiekie / One Tree Hill and maintenance

X

 

 

Mana Aotūroa / Cultural and Heritage

  • enable Mana Whenua role as kaitiaki over the Tūpuna Maunga
  • encourage culturally safe access
  • restoring customary practices and associated knowledge
  • recognise European and other histories, and interaction with the Maunga

Restoration and protection of significant sites such as pits, terraces and pā sites, and ensuring vegetation control and restoration plantings in these areas

X

X

X

Mana Aotūroa / Cultural and Heritage

  • enable Mana Whenua role as kaitiaki over the Tūpuna Maunga
  • encourage culturally safe access
  • restoring customary practices and associated knowledge
  • recognise European and other histories, and interaction with the Maunga

Installation of pou

 

X

X

Takotoranga / Landscape

  • protect the integrity of the Tūpuna Maunga
  • encourage design that reflects Tūpuna Maunga Values
  • promote a connected network of Maunga
  • preserve the visual and physical integrity of the Maunga as landmarks of Tāmaki
  • active restoration and enhancement of the natural features of the Maunga
  • encourage activities that are in keeping with the natural and indigenous landscape

Improving general landscape maintenance and protection on the Tūpuna Maunga (includes re-vegetation, restoration of historic sites and monitoring)

X

X

X

Takotoranga / Landscape

  • protect the integrity of the Tūpuna Maunga
  • encourage design that reflects Tūpuna Maunga Values
  • promote a connected network of Maunga
  • preserve the visual and physical integrity of the Maunga as landmarks of Tāmaki
  • active restoration and enhancement of the natural features of the Maunga
  • encourage activities that are in keeping with the natural and indigenous landscape

Develop distinct entryways that reflect the change in ownership of the Tūpuna Maunga and highlight their significance to Mana Whenua (include gates, pedestrian access, parking, landscaping, signage, wayfinding)

X

X

 

Takotoranga / Landscape

  • protect the integrity of the Tūpuna Maunga
  • encourage design that reflects Tūpuna Maunga Values
  • promote a connected network of Maunga
  • preserve the visual and physical integrity of the Maunga as landmarks of Tāmaki
  • active restoration and enhancement of the natural features of the Maunga
  • encourage activities that are in keeping with the natural and indigenous landscape

Car parking upgrade to encourage walking and reduction in vehicles on the tihi (summits)

X

X

X

Takotoranga / Landscape

  • protect the integrity of the Tūpuna Maunga
  • encourage design that reflects Tūpuna Maunga Values
  • promote a connected network of Maunga
  • preserve the visual and physical integrity of the Maunga as landmarks of Tāmaki
  • active restoration and enhancement of the natural features of the Maunga
  • encourage activities that are in keeping with the natural and indigenous landscape

Fencing / bollards; installation and upgrade of vehicle barriers, removal of redundant fencing, placement of new fencing, rebuilding of stone walls

X

X

X

Takotoranga / Landscape

  • protect the integrity of the Tūpuna Maunga
  • encourage design that reflects Tūpuna Maunga Values
  • promote a connected network of Maunga
  • preserve the visual and physical integrity of the Maunga as landmarks of Tāmaki
  • active restoration and enhancement of the natural features of the Maunga
  • encourage activities that are in keeping with the natural and indigenous landscape

Development of a traffic management bylaw under the Land Transport Act

X

 

 

Takotoranga / Landscape

  • protect the integrity of the Tūpuna Maunga
  • encourage design that reflects Tūpuna Maunga Values
  • promote a connected network of Maunga
  • preserve the visual and physical integrity of the Maunga as landmarks of Tāmaki
  • active restoration and enhancement of the natural features of the Maunga
  • encourage activities that are in keeping with the natural and indigenous landscape

Development of Tūpuna Maunga Design Guidelines

X

   

Mauri Pūnaha Hauropi / Ecology and Biodiversity

  • strengthen ecological linkages between the Maunga
  • Maunga tū mauri ora, maunga tu makaurau ora / if the Maunga are well, Auckland is well
  • restore the biodiversity of the Tūpuna Maunga

Animal and pest control

X

X

X

Mauri Pūnaha Hauropi / Ecology and Biodiversity

  • strengthen ecological linkages between the Maunga
  • Maunga tū mauri ora, maunga tu makaurau ora / if the Maunga are well, Auckland is well
  • restore the biodiversity of the Tūpuna Maunga

Vegetation management, including removal of harmful exotic species

X

X

X

Mauri Pūnaha Hauropi / Ecology and Biodiversity

  • strengthen ecological linkages between the Maunga
  • Maunga tū mauri ora, maunga tu makaurau ora / if the Maunga are well, Auckland is well
  • restore the biodiversity of the Tūpuna Maunga

Development of a Tūpuna Maunga Planting Programme

X

X

X

Mauri Pūnaha Hauropi / Ecology and Biodiversity

  • strengthen ecological linkages between the Maunga
  • Maunga tū mauri ora, maunga tu makaurau ora / if the Maunga are well, Auckland is well
  • restore the biodiversity of the Tūpuna Maunga

Development of a Tūpuna Maunga Biosecurity and Pest Management Plan

X

X

 

Mauri Pūnaha Hauropi / Ecology and Biodiversity

  • strengthen ecological linkages between the Maunga
  • Maunga tū mauri ora, maunga tu makaurau ora / if the Maunga are well, Auckland is well
  • restore the biodiversity of the Tūpuna Maunga

Event celebrating pedestrian connection at Maungawhau / Mount Eden

X

   

Mauri Pūnaha Hauropi / Ecology and Biodiversity

  • strengthen ecological linkages between the Maunga
  • Maunga tū mauri ora, maunga tu makaurau ora / if the Maunga are well, Auckland is well
  • restore the biodiversity of the Tūpuna Maunga

Development of brochures and information for the Tūpuna Maunga

X

X

 

Mauri Pūnaha Hauropi / Ecology and Biodiversity

  • strengthen ecological linkages between the Maunga
  • Maunga tū mauri ora, maunga tu makaurau ora / if the Maunga are well, Auckland is well
  • restore the biodiversity of the Tūpuna Maunga

Development of a Tūpuna Maunga Signage and Communication Strategy

X

   

Mauri Pūnaha Hauropi / Ecology and Biodiversity

  • strengthen ecological linkages between the Maunga
  • Maunga tū mauri ora, maunga tu makaurau ora / if the Maunga are well, Auckland is well
  • restore the biodiversity of the Tūpuna Maunga

Complete signage replacement (all signs to reflect Māori naming and Tūpuna Maunga Authority branding)

X

X

 

Mauri Pūnaha Hauropi / Ecology and Biodiversity

  • strengthen ecological linkages between the Maunga
  • Maunga tū mauri ora, maunga tu makaurau ora / if the Maunga are well, Auckland is well
  • restore the biodiversity of the Tūpuna Maunga

Way finding / interpretation (track and trail marking, interpretation of features, notice boards, visual aids, interactive displays)

X

X

 

Mauri Pūnaha Hauropi / Ecology and Biodiversity

  • strengthen ecological linkages between the Maunga
  • Maunga tū mauri ora, maunga tu makaurau ora / if the Maunga are well, Auckland is well
  • restore the biodiversity of the Tūpuna Maunga

Visitor information hub / centres

X

X

X

Mauri Pūnaha Hauropi / Ecology and Biodiversity

  • strengthen ecological linkages between the Maunga
  • Maunga tū mauri ora, maunga tu makaurau ora / if the Maunga are well, Auckland is well
  • restore the biodiversity of the Tūpuna Maunga

Development of a Partnerships and Stakeholders strategy (which will cover educational programmes)

X

   

Mauri Pūnaha Hauropi / Ecology and Biodiversity

  • strengthen ecological linkages between the Maunga
  • Maunga tū mauri ora, maunga tu makaurau ora / if the Maunga are well, Auckland is well
  • restore the biodiversity of the Tūpuna Maunga

Development of a Volunteer Framework

X

   

Mauri Pūnaha Hauropi / Ecology and Biodiversity

  • strengthen ecological linkages between the Maunga
  • Maunga tū mauri ora, maunga tu makaurau ora / if the Maunga are well, Auckland is well
  • restore the biodiversity of the Tūpuna Maunga

Development of a Tūpuna Maunga Monitoring Strategy

X

   

Whai Rawa Whakauka / Economic and Commercial

  • focus on commercial activities that create value and enhance experience
  • explore alternative and self-sustaining funding opportunities
  • foster partnerships and collaboration
  • alignment with the Tūpuna Maunga Values

Development of a Tūpuna Maunga Commercial Strategy

X

   

Mana Whai a Rēhia / Recreational

  • promote health and wellbeing
  • encourage informal inclusive recreation activities
  • balance informal and formal recreation
  • recreational activities consistent with tikanga Māori
  • Maunga are special places and treasures handed down

Upgrade of existing facilities and development of new facilities where appropriate (develop toilet facilities as required, upgrade / re-design furniture, building repairs, maintenance of historical assets including asset condition renewal); furniture design should be specific to the Tūpuna Maunga

X

X

X

Mana Whai a Rēhia / Recreational

  • promote health and wellbeing
  • encourage informal inclusive recreation activities
  • balance informal and formal recreation
  • recreational activities consistent with tikanga Māori
  • Maunga are special places and treasures handed down

Upgrade tracks to improve access and protection of important sites

X

X

X

 

Summary of Indicative Funding Requirements

The proposed expenditure and funding requirements for the Maunga Authority is summarised below. This funding was approved in the Auckland Council Long-term Plan 2015-2025 (LTP).

 

2016/17

Net operating expenditure

$2,863,020.00

Capital Projects

$ 1,915,844.00

Total funding envelope

$4,778,864.00

Targeted rate reserve (total 2.5 million)

$562,920.00

Targeted rate reserve

The net operating expenditure takes into account the funding from the Open Space and Volcanic Cones Targeted Rate Reserve (Targeted Rate Reserve) which has been used to help fund activities over from 2015/2016 to 2020/2021. The table above shows the funds from the Targeted Rate Reserve which will be applied in 2016/2017.

The targeted rate reserve will be used to fund activities in the first five years of the LTP and must be used for operational purposes associated with the volcanic cones. In 2016/2017 it will be applied to development of the Tūpuna Maunga Integrated Management Plan and any associated strategies. It will also be used to fund landscape protection projects such as vegetation controls across the maunga.

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Part 5: Appendices

How the organisation is structured

Auckland Council is a unique model of local government in New Zealand, comprising the governing body (made up of the mayor and 20 ward councillors) and 21 local boards. Together, this is a shared governance model where decisions can be made regionally and locally, and both big picture regional views and local views are an important part of the decision-making process.

Auckland Council also has council-controlled organisations (CCOs) to carry out certain functions and provide services. They are independent in their operations, but are accountable to the council.

The Independent Māori Statutory Board (IMSB) is an independent board established by the Local Government (Auckland Council) Amendment Act 2010.

There are also nine advisory panels that advise the council on its strategies, policies, plans and bylaws and mechanisms for engagement.

The governing body

This consists of the mayor and 20 councillors who are elected on a ward basis. The governing body focuses on the big picture and on Auckland-wide strategic decisions that are important to the whole region. Auckland is split into 13 wards, which are used for council elections. Councillors are elected to represent wards and they also sit on council committees. Our councillors' contact details can be found on the next page.

The Mayor

The Mayor is elected by residents directly. The mayor leads the council and has enhanced responsibilities including promoting a vision for Auckland, providing leadership to achieve the vision, leading development of council plans, policies and budget, and engaging with the people of Auckland and its many communities and stakeholders.

Mayor and councillors' contact details

Len Brown, JP. MAYOR

Auckland Council

Private Bag 92300

Auckland 1142

Ph: (09) 301 0101

len.brown@aucklandcouncil.govt.nz

 

Penny Hulse, DEPUTY MAYOR

[Waitākere]

Auckland Council

Private Bag 92300

Auckland 1142

Ph: (021) 273 4663

penny.hulse@aucklandcouncil.govt.nz

Chair - CCO Governance and Monitoring Committee; Auckland Development Committee

Arthur Anae [Manukau]

560 Great South Road

Ōtāhuhu

Auckland 1062

Ph: (021) 921 941

arthur.anae@aucklandcouncil.govt.nz

Chair - Economic Development Committee

Cameron Brewer [Orākei]

PO Box 9733

Newmarket

Auckland 1149

Ph: (021) 828 016

cameron.brewer@aucklandcouncil.govt.nz

Bill Cashmore [Franklin]

389 Kawakawa-Orere Rd

RD5, Papakura 2585

Ph: (021) 283 3355

bill.cashmore@aucklandcouncil.govt.nz

Dr Cathy Casey [Albert-Eden-Roskill]

66 Allendale Road

Mt Albert

Auckland 1025

Ph: (027) 474 4231

cathy.casey@aucklandcouncil.govt.nz

Chair - Community Development and Safety Committee

Ross Clow [Whau]

Private Bag 92300

Auckland 1142

Ph: (021) 808 214    Ph: 09 817 8456

ross.clow@aucklandcouncil.govt.nz

 

Linda Cooper [Waitākere] JP

41 Renoir Street

West Harbour

Auckland 0618

Ph: (021) 629 533

linda.cooper@aucklandcouncil.govt.nz

Chair - Hearings Committee

Chris Darby [North Shore]

Auckland Council,

Private Bag 92300

Auckland 1142

Ph: (021) 284 2888

chris.darby@aucklandcouncil.govt.nz

 

Alf Filipaina [Manukau]

32 Miller Road

Māngere Bridge

Auckland 2022

Ph: (021) 280 0999

alf.filipaina@aucklandcouncil.govt.nz

Chair - Unitary Plan Committee; Arts, Culture and Events Committee

Hon Christine Fletcher, QSO

[Albert-Eden-Roskill]

7 Bourne Street

Mt Eden

Auckland 1024

Ph: (027) 276 0013

chris.fletcher@aucklandcouncil.govt.nz

Chair - CEO Review Committee; Parks, Recreation and Sport Committee

Denise Krum [Maungakiekie-Tāmaki]

Auckland Council,

Private Bag 92300

Auckland 1142

Ph: (021) 629 648

denise.krum@aucklandcouncil.govt.nz

 

 

Mike Lee [Waitematā and Gulf]

15A Burrows Avenue

Parnell

Auckland 1052

Ph: (027) 494 3198

mike.lee@aucklandcouncil.govt.nz

Chair - Infrastructure Committee

Calum Penrose [Manurewa-Papakura]

Auckland Council
Private Bag 92300
Auckland 1142

Ph: (027) 217 0760
calum.penrose@aucklandcouncil.govt.nz

Chair - Regulatory and Bylaws Committee

Dick Quax [Howick]

PO Box 51-752

Pakuranga

Auckland 2140

Ph: (021) 286 7766

dick.quax@aucklandcouncil.govt.nz

Chair - Tenders and Procurement Committee

Sharon Stewart [Howick] QSM

21 Treeway

Sunnyhills

Auckland 2010

Ph: (021) 282 1144 or (09) 577 4127

sharon.stewart@aucklandcouncil.govt.nz

Chair - Civil Defence and Emergency Management Committee

Sir John Walker, KNZM, CBE
[Manurewa-Papakura]

6 Railway Street

Newmarket

Auckland 1023

Auckland Ambassador

Ph (09) 266 6616

john.walker@aucklandcouncil.govt.nz

Chair - Audit and Risk Committee

Wayne Walker [Albany]

Auckland Council
Private Bag 92300
Auckland 1142

Ph: (021) 882 861

wayne.walker@aucklandcouncil.govt.nz

Chair - Environment, Climate Change and Natural Heritage Committee

John Watson [Albany]

Auckland Council
Private Bag 92300
Auckland 1142

Ph: (021) 287 5999

john.watson@aucklandcouncil.govt.nz

Penny Webster [Rodney]

61 Fidelis Avenue

Snells Beach

Warkworth 0920

Ph: (021) 390 317

penny.webster@aucklandcouncil.govt.nz

Chair - Finance and Performance Committee

George Wood, CNZM [North Shore]

54 Grenada Avenue

Forrest Hill

Auckland 0620

Ph: (021) 281 5555

george.wood@aucklandcouncil.govt.nz

Chair - Regional Strategy and Policy Committee

 

Local boards

The 21 local boards are a key part of the governance of Auckland Council with a wide-ranging role that spans most council services and activities. Local boards make decisions on local matters, provide local leadership, support strong local communities and provide important local input into region-wide strategies and plans.

Local boards:

Each year, local boards and the governing body agree individual local board agreements, which set out the local activities, services and levels of service that will be provided over the coming year. The agreements for 2016/2017 are included in this annual budget and can be found in Volume 2 of this document.

To find out which local board area you are in, follow this path from the website home page:

About Council > Local Boards > Find your ward and local board

Council-controlled organisations

Auckland Council provides a range of services and programmes to the Auckland region through their substantive CCOs and a range of other CCOs which participate in, and contribute to, the plans made by the council, as well as managing services such as transport.

CCOs fulfil two key roles. They provide commercial or specialist expertise that may not be available within the council organisation, and allow the council to focus on its core responsibilities such as strategy, policy or regulatory functions.

For more information on the policies, objectives, activities and performance targets of CCOs, see the relevant activity statement in the Long-term Plan 2015-2025, CCO overview in Part 4 of Volume 2.

Independent Māori Statutory Board (IMSB)

The IMSB is an independent board, whose purpose is to assist the council to make decisions, perform functions and exercise powers, taking into account the cultural, economic, environmental and social issues of significance for Mana Whenua groups and mataawaka of Tāmaki Makaurau - Auckland. It also ensures the council acts in accordance with statutory provisions referring to the Treaty of Waitangi.

The board:

The board and the council will also meet at least four times each year to discuss the council's performance of its duties. The nine members are:

Mana Whenua representatives Mataawaka representatives
  • Mr David Taipari, Chairperson (Ngāti Maru, Ngāti Whanaunga, Ngāti Tamaterā, Ngāti Paoa)
  • John Tamihere (Ngāti Porou, Whakatōhea, Tainui)
  • Mr Glenn Wilcox, Deputy Chairperson (Ngāti Whātua)
  • [vacant]
  • Ms Precious Clark (Ngāti Whātua, Waikato)

 

  • Ms Karen Wilson (Te Akitai Waiohua, Ngāti Te Ata, Ngāti Pikiao, Ngati Hau)

 

  • Mr Kristan McDonald Te Whānau ā Rangiwhakaahu  Ngāti Rehua hapū, Ngāti Wai)

 

  • Ms Liane Ngāmane (Ngāti Tamaterā, Ngāti Maru, Ngāti Whanaunga, Ngāti Paoa)

 

  • Ms Josie Smith (Ngāti Te Ata, Ngati Tipā, Ngāti Whātua and Ngāpuhi)

 

For more details on the IMSB, please visit www.imsb.maori.nz.

Advisory panels

The purpose of advisory panels is to provide strategic advice to Auckland Council on issues of importance to the respective communities, and to advise the council on how to communicate and engage effectively with communities, in relation to:

Auckland Council has six demographic advisory panels and three sector panels.

Demographic advisory panels:

  • Disability Advisory Panel
  • Rainbow Communities Advisory Panel
  • Ethnic Peoples Advisory Panel
  • Seniors Advisory Panel
  • Pacific Peoples Advisory Panel
  • Youth Advisory Panel

Sector panels:

  • Auckland City Centre Advisory Board
  • Rural Advisory Panel
  • Heritage Advisory Panel

For more detail on Auckland Council's advisory panels, please visit our website www.aucklandcouncil.govt.nz

Information can be found under: About  council > Your mayor and representatives > Advisory panels.

Co-governance arrangements

As a result of Treaty Settlements, legislation has established co-governance entities which require the involvement of the council:

i.      The Ngati Whatua Orākei Reserves Board is established under the Orākei Act 1991 and currently operates under the Ngati Whatua Orākei Claims Settlement Act 2012 and has three council appointees.

ii.     The Parakai Recreation Reserves Board is established under the Ngati Whatua o Kaipara Claims Settlement Act 2013 and has three council appointees.

iii.    The Tūpuna Maunga o Tamakai Makaurau Authority (or Maunga Authority) is established under the Nga Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014 and has six council appointees.

In addition, the council nominates two members of the Mutukaroa (Hamlins Hill) Management Trust and four members of the Te Motu a Hiaroa (Puketutu Island) Governance Trust

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How to contact the council

Telephone: (09) 301 0101 (toll-free)
In person: At our customer service centres
Via our website: Using our online form at www.aucklandcouncil.govt.nz
Fax:: (09) 301 0100
Write to us: At Auckland Council, Private Bag 92300, Auckland 1142

Customer service centres

Customer service centres allow Aucklanders to interact with us in person. We have over 25 customer service centres operating around Auckland. Currently, there are a variety of different services delivered to different levels across the centres, but overall they deliver:

  • general information on all council services, products and events
  • property information
  • payments for dog registration rates and other services
  • lodgement of building and resource consents
  • dog renewal registration
  • lodgement of licences and LIM applications
  • copies of publications and reports
  • payment of parking infringements.
  • specialist advice

 

To find out what services are offered from your local service centre, please visit our website www.aucklandcouncil.govt.nz. Information can be found under: Contact us > Customer service centres

Service centre Physical address
Albany 30 Kell Drive, Albany
Birkenhead Nell Fisher Reserve - Hinemoa Street, Birkenhead
Bledisloe House 24 Wellesley Street, Auckland Central
Browns Bay Corner of Bute and Glen Roads, Browns Bay
Devonport 3 Victoria Road, Devonport
Glen Eden 39 Glenmall Place, Glen Eden
Glenfield 90 Bentley Avenue, Glenfield
Graham Street 35 Graham Street, Auckland
Great Barrier Island Hector Sanderson Road, Claris
Helensville 49 Commercial Road, Helensville
Henderson 6 Henderson Valley Road, Henderson Waitākere
Huapai 296 Main Road (SH16) Huapai
Manukau Ground Floor, Kotuku House, 4 Osterley Way, Manukau City Centre
New Lynn 31 Totara Avenue, New Lynn
Ōrewa 50 Centreway Road, Ōrewa
Papakura 35 Coles Crescent, Papakura
Pukekohe 82 Manukau Road, Pukekohe
Takapuna 1 The Strand, Takapuna
Waiheke Island 10 Belgium Street, Ostend
Waiuku Corner of King Street and Constable Road, Waiuku
Warkworth 1 Baxter Street, Warkworth
Whangapāraoa 9 Main Street, Whangapāraoa

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Glossary of terms

Term Definition
Accelerated Transport Programme An Accelerated Transport Programme has been established to help address urgent transport investment needs, particularly public transport. An additional $523 million will be invested in the first three years, partially funded by an Interim Transport Levy.
Activity The goods or services the council provides
AMETI Auckland Manukau Eastern Transport Initiative
Annual Plan The plan that sets out what the council will be working to achieve in a financial year, how it will spend its money, the level of service to be provided, and the level of rates and other revenue required to fund that spending
Asset An item of value, usually of a physical nature, that has a useful life of more than 12 months and has future economic benefits over a period of time. Infrastructural assets provide the basic facilities, services and installations needed for a community or society to function, such as stormwater drainage pipes. Non-infrastructural assets are the organisation's other assets that provide either administrative or operational functions, such as computer software
AT Auckland Transport
ATEED Auckland Tourism, Events and Economic Development Limited
Auckland Council or the council The local government of Auckland established on 1 November 2010. The council is made up of the governing body, 21 local boards, and the council organisation (operational staff)
BID Business improvement district
Centres Localities identified as urban centres which include the city centre and fringe, metropolitan centres, town centres and local centres. Centres are typically higher density, compact mixed-use environments with high quality public transport links and provide a wide range of community, recreational, social and other activities

CRL

City Rail Link.
COMET COMET Auckland
Commercial activities Retail, information and communication, finance and insurance, and other service sectors. These sectors typically can afford relatively higher land prices/rents, and locate well in town centres
Council-controlled organisation (CCO) A company or other entity under the control of local authorities through their shareholding of 50 per cent or more, voting rights of 50 per cent or more, or right to appoint 50 per cent or more of the directors. Some organisations may meet this definition but are exempted as council-controlled organisations
Depreciation The charge representing consumption or use of an asset, assessed by spreading the asset's value over its estimated economic life. Depreciation includes amortisation of intangible assets unless otherwise stated
Panuku Development Auckland (PDA) A new CCO combining Waterfront Auckland and ACPL to work as a single outward facing entity in the development of the region.
Development contributions Contributions from developers, collected to help fund new infrastructure required by growth, as set out in the Local Government Act 2002. This can be a financial contribution or provision of services or an asset of the same value.
Governing body The governing body is made up of the mayor and 20 councillors. It shares its responsibility for decision-making with the local boards. The governing body focuses on the big picture and on Auckland-wide strategic decisions. Because each ward may vary in population, some wards have more than one councillor
Grants and subsidies Revenue received from an external agency to help fund an activity or service that the council provides
Gross operating expenditure Total without deductions of depreciation and finance costs
Hapū Kinship group, clan, tribe, sub tribe - section of a large kinship group
Household One or more people usually resident in the same dwelling, who share living facilities. A household can contain one or more families, or no families at all. A household that does not contain a family nucleus could contain unrelated people, related people, or could simply be a person living alone
Infrastructure The fixed, long-lived structures that facilitate the production of goods and services and underpin many aspects of quality of life. Infrastructure refers to physical networks, principally transport, water, energy, and communications
Interim transport levy Interim levy for the first three years of the Long-term Plan 2015-2025 (10-year budget) which contributes towards the additional capital expenditure for the acceleration of the transport capital programme.
Iwi Groups of whānau or hapū related through a common ancestor
Kaitiaki Guardians of the environment
Kaitiakitanga Guardianship including stewardship; processes and practices for looking after the environment, guardianship that is rooted in tradition
Local boards There are 21 local boards which share responsibility for decision-making with the governing body. They represent their local communities and make decisions on local issues, activities and facilities
Local Board Agreement An annual agreement between the governing body and each local board, outlining its priorities and preferences in its local board plan for the year
Local Board Plan A plan that reflects the priorities and preferences of the communities within the local board area in respect of the level and nature of local activities to be provided by the council over the next three years
Local Government Act 2002 (LGA 2002) Legislation that defines the powers and responsibilities of territorial local authorities such as Auckland Council
Local Government (Rating) Act 2002 (LGRA) Defines how territorial local authorities such as Auckland Council can assess and apply their rating policy
Long-term Plan or the LTP This document sets out the council's vision, activities, projects, policies, and budgets for a 10-year period. Also commonly referred to as the LTP, the 10-year budget
Mana whenua Iwi, the people of the land who have mana or customary authority. Their historical, cultural and genealogical heritage are attached to the land and sea
Mataawaka Māori who live in Auckland but do not whakapapa to mana whenua.
Mātauranga Māori Māori wisdom. In a traditional context, this means the knowledge, comprehension or understanding of everything visible or invisible that exists across the universe
Maunga Mountain, mount, peak; Auckland's volcanic cones
Mauri Mauri is the pure state of an object or substance. Sometimes referred to as the 'life force', mauri is contingent upon all things being in balance or in harmony
New Zealand Transport Agency (NZTA) Plans and delivers sustainable transport networks across New Zealand, In Auckland and has responsibility for maintaining the state highway network roads
Fortified Māori settlements, villages and towns
Papakāinga A location including meeting facilities, homes, vegetable gardens, a cemetery and other things required to sustain a whānau, hapū or iwi. Known previously as unfortified Māori settlements, villages and towns
Papakāinga housing Housing development within a papakāinga framework
Penlink Penlink is a proposed alternative route between the Whangaparaoa Peninsula and State Highway 1 (SH1) at Redvale.
Rangatahi Younger generation, youth
Rangatira Chief
Rangatiratanga Chiefly authority. A state of being. It is expressed in who we are, and how we do things; ability to make decisions for the benefit of their people and the community in general; confers not only status but also responsibility to ensure that the natural world and its resources are maintained into the future; recognises iwi and hapū right to manage resources or kaitiakitanga over the ancestral lands and waters. The Māori version of article 2 of the Treaty uses the word 'rangātiratanga' in promising to uphold the authority that tribes had always had over their lands and taonga.
Rates A charge against the property to help fund services and assets that the council provides
Rūnanga Assembly or council in an iwi context
Taonga A treasured item, which may be tangible or intangible
Tāmaki Makaurau The Māori name for Auckland
Tangata Whenua Indigenous peoples of the land
Targeted rates A targeted rate is a rate set to fund activities where greater transparency in funding is desired or where the council considers the cost should be met by particular groups of ratepayers, as they will be the prime beneficiaries of the activity.
Te Tiriti o Waitangi / The Treaty of Waitangi The written principles on which the British and Māori agreed to found a nation state and build a government
Te Toa Takitini A top-down council group approach to better enable the council group to identify, invest, and track progress on activities that deliver on the Auckland Plan, transform the organisation and deliver Aucklanders great value for money. It derives from the whakatauki (proverb): Ehara taku toa i te toa takitahi, engari he toa takitini, Success is not determined by me alone, it is the sum of the contribution of many.
Tikanga Customary lore and practice
Transformational shifts Our vision will not be achieved by incremental change. Transformational change is needed, and this requires a commitment to a better future from all Aucklanders. The Auckland Plan's six transformational shifts are the areas where Auckland needs to make a step change. They are interdependent and interconnected, and taking an integrated, mutually reinforcing and 'multiplier' approach will be critical to achieving them.
UAGC Uniform Annual General Charge - a fixed rate set uniformly across all properties regardless of property value or category, applied to every separately used or inhabited part of a rating unit (e.g. a dwelling on a section, a shop in a mall, or a granny flat)
Waka Canoe, vehicle, conveyance
Waste Any matter, whether liquid, gas or solid, which is discharged, unwanted or discarded by the current generator or owner as having little or no economic value, and which may include materials that can be reused, recycled or recovered
Watercare Watercare Services Limited
WMMP Waste Management and Minimisation Plan, the first Auckland-wide plan, aiming at an aspirational goal of Zero Waste, helping people to minimise their waste and create economic opportunities in doing so.

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Footnotes:

[1] There would be some exceptions for Franklin business ratepayers who are still transitioning to a new rating policy, properties with new additions or extensions, and any specific properties affected by a new or changed targeted rate. The council is also reducing the proportion of rates collected from businesses in equal steps from 32.7 per cent to 25.8 per cent by 2036/2037. This means that residential and farm/lifestyle ratepayers will have slightly higher rates increases each year.

[2] Maungakiekie/One Tree Hill Northern land - ownership of the land remains with the Crown, and it is administered by the Tūpuna Maunga Authority under the Collective Redress Act and Reserves Act

[3] Maungauika/North Head - vested in the Taonga Trust, and currently administered by the Crown (Department of Conservation) until such time as and when an Order in Council is made that transfers administration to the Tūpuna Maunga Authority

[4] Rarotonga/Mount Smart - vested in the Taonga Trust and administered by Auckland Council (Regional Facilities Auckland) under the Mount Smart Regional Recreation Centre Act 1985 and Reserves Act

[5] Māngere Mountain/Te Pane-o-Mataaho/Te Ara Pueru - ownership of the land remains with the Crown, and is administered by the Tūpuna Maunga Authority under the Collective Redress Act and Reserve Act

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