Annual Plan 2014 Volume 1

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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.

About this plan

This is Auckland Council's plan for delivering services and building infrastructure during the 2014/2015 financial year, the third year of the council's Long-term Plan 2012-2022 (LTP).

This plan was adopted by the governing body on 26 June 2014 following public consultation in January and February 2014.

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. The council is now working on its next long-term plan for adoption in June 2015. 

How this plan is arranged

This plan has two separate volumes. To find information on a particular area of the council's work or services, you will need to look in the appropriate volume. This is volume 1.

Volume 1 cover image.

Volume 1: Our plan for 2014/2015

This volume is divided into seven parts:

Part I provides context and background to the plan including a message from the Mayor of Auckland. It outlines what we will be doing in the year to July 2015 to work towards the goals of the Auckland Plan.

Part II covers the activities and services of Auckland Council.

Part III contains detailed financial information for 2014/2015.

Part IV contains information on our council-controlled organisations (CCOs).

Part V contains our rates related policies.

Part VI contains the schedule of regulatory fees and charges for 2014/2015.

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

Volume 2 cover image.

 

Volume 2: Local board information and agreements

This volume is divided into two parts:

Part I provides information on the decision-making responsibilities of local boards, the development of local board plans and agreements and a summary of planned local board expenditure for 2014/2015.

Part II contains specific information for each of the 21 local boards, including a local board agreement that contains detailed information about local activities and the corresponding budgets for 2014/2015, along with an introductory section that provides context for the final agreement.

To request a hard copy, Microsoft Word or large print version of this document, email annual.plan@aucklandcouncil.govt.nz or call 09 301 0101.

Contents of this volume

Part I: An overview of the Annual Plan 2014/2015

Message from the mayor

Our plan for 2014/2015

Key Decisions

Our strategic framework

Part II: Our activities

Introduction to themes and groups of activities

Governance

Planning

Commercial and investment

Economic development

Built and natural environment

Solid waste

Stormwater and flood protection

Water supply and wastewater

Transport

Community

Lifestyle and culture

Corporate support

Part III: Financial information

Financial overview

Prospective financial statements and notes

Prospective funding impact statements for 2014/2015

Capital projects list for 2014/2015

Part IV: Council-controlled organisations (CCOs)

Overview

The substantive CCOs

Other CCOs

Part V: Rates related policies

Rating policy

Early payment and rates transition policies

Sample properties

Part VI: Schedule of regulatory fees and charges 2014/2015

Schedule of fees and charges

Part VII: Appendices

How the organisation is structured

How to contact the council

Glossary of terms

Message from the mayor

Aucklanders have made it clear they want financial prudence, which is why I am focused on the principles of ongoing savings, a low average rate increase and judicious investment in the 2014/2015 Annual Plan.

Auckland Council continues to realise the savings and efficiencies of a unified Auckland, allowing us to achieve a 2.5 per cent average rate increase. This is down from the forecast increase for this year of 4.9 per cent in the Long-term Plan 2012-2022 (LTP).

This is the fourth consecutive year of falling rates increases, down from 2.9 per cent last year. It is also the third and final year of the transition period as we move to a single rating system in which properties of the same value will pay the same rates wherever they are in Auckland.

This Annual Plan is year three of our LTP, the 10-year work programme for Auckland Council and its CCOs. Our first LTP was constrained by the amalgamation - the clarity of financial information from eight legacy councils and the challenges of fully understanding the costs of running the newly consolidated services and projects.

The council is now working on an 18-month review of the LTP to construct the next 10-year programme and budget. This will be a much more in-depth analysis of major costs and priorities than was possible in the first LTP.

It will also be a timely opportunity for us to have a frank conversation about our capital expenditure programme, alternative revenues, infrastructure funding and sustainable debt levels. Council debt is projected to grow to $7.2 billion by June 2015. Compared to our asset base and our prudential ratios this is still well within our limits, yet I share concerns about the level of borrowing and the time has come for us to have an informed and robust discussion with our community.

As we take a long, hard look at sustainable debt levels, we also need to be closely examining innovative ways of funding our major infrastructure projects, and discussing what opportunities they could present for Auckland.

On the basis of the LTP review underway, the approach to this Annual Plan is to steadily continue the work of the last three years, seeking balance between further savings and maintaining service levels, a fairer cost split between ratepayers and service users, and ongoing wise investment.

Auckland is still playing catch-up with under-investment in some areas and it is important we continue to invest for future population growth. This budget continues the push to deliver key projects for the city, including the City Rail Link, our new electric trains and some of our major roading projects such as the Albany Highway and AMETI.

In addition we continue to invest in local communities through projects such as new libraries in Massey North, Te Atatu Peninsula, Devonport, Flatbush and Ōtāhuhu; town centre upgrades in New Lynn, Westgate and Pukekohe; and ongoing investment in parks and sports grounds.

We all know we need to invest in Auckland's future and I know Aucklanders want us to do that in a prudent and balanced way, keeping rates down while continuing to realise the efficiencies promised by a united Auckland.

Len Brown

Mayor of Auckland

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Our plan for 2014/2015

Auckland now and in the future

Our vision is to make Auckland the world's most liveable city and deliver Aucklanders great value for money.

Auckland's population is projected to reach two million people by 2031 which will significantly increase demand for housing and transport. To meet these challenges, Auckland needs to invest.

The Auckland Plan sets out our strategic plan to address these challenges and deliver our vision. Our LTP 2012-2022 sets out our current 10-year investment plan and how we will continue to deliver existing services.

Investing in transforming Auckland

Since Auckland Council was created in November 2010, a diverse range of improvement projects have been completed that have begun to change the face of Auckland. These include:

Capital expenditure programme for 2014/2015

In 2014/2015 we plan to maintain our momentum by investing $1.15 billion in new and improved assets. Combined with $525 million to restore and replace existing assets, our total planned capital expenditure programme for 2014/2015 is $1.7 billion.

Key projects for 2014/2015

$826 MILLION Investment in transport

$323 MILLION Investment in water supply and sewerage

$248 MILLION Investment in lifestyle and culture

$63 MILLION Investment in developing local communities

$96 MILLION Investment in drainage and flood protection

$83 MILLION Investment in developing the Auckland economy

$243 MILLION Investment to protect and support the region

Note:  The sum of the capital investment projects included in this plan is about $207 million more than the total capital expenditure projected in our financial statements. This is because we anticipate that a proportion of our planned projects will be delayed and the money will be spent in subsequent years. At the time of adopting this plan Auckland Council staff are reviewing the 2014/2015 capital expenditure programme with a target of reducing or deferring an additional $300 million of rates-funded capex.

Paying for this investment

The $525 million it will cost during 2014/2015 to restore and replace existing assets (such as transport, water, wastewater and stormwater assets) is primarily paid for by rates.

The $1.15 billion investment in new assets is primarily paid for by borrowing, so that we can spread this cost over time. We consider this to be the fairest and most appropriate approach because these assets will provide benefits for people over a long period of time. Without the ability to use debt in this way, the council would have to choose between significantly higher rates or a significant reduction in new assets and services.

To ensure that we are using debt wisely, we monitor our borrowing levels relative to our income and the value of our assets. By June 2015 the value of council assets will grow to $40.6 billion and debt will increase to $7.2billion.

Asset movement

 

2014/2015

$ billion

Opening assets

38.9

Investment in new assets

1.2

Revaluation and other movements

0.5

Closing assets

40.6

   

Debt movement

 

2014/2015

$ billion

Opening net debt

6.3

New borrowing requirement

0.9

 

 

Closing net debt

7.2

Some of the key things we do to ensure that our use of debt remains prudent and sustainable include:

Ensuring that higher interest bills in the future are affordable for ratepayers

We prepare audited 10-year financial plans that demonstrate our debt levels can be managed without the need for unsustainable increases in rates or user charges.

We have also set prudential debt limits and we ensure that debt levels remain within those limits over a 10-year period.

Protecting ourselves from rising interest rates

In a similar way to how you might fix your mortgage, we protect the council from rises in interest rates by using fixed interest rates and interest rate hedging instruments. To a large extent, this locks in council's future borrowing cost.

Ensuring that we are not too dependent on financial markets

 

We ensure that we always have sufficient cash, liquid investments and committed lines of credit available to allow us to pay our bills for at least six months.

We make sure that we borrow from a range of domestic and international lenders so that a problem with any one source of borrowings does not have too large an impact.

Further information on the council's approach to financial management is included in the financial overview in Part III of this volume.

Operating budgets for delivering services in 2014/2015

Auckland Council continues to deliver the diverse range of services provided by the former councils, with a focus on providing these more efficiently and tailored to address Auckland's future growth.

Our road network covers 7200km - laid out end-to-end, would stretch from Auckland to Invercargill and back three times

Our 2800 local parks, 240 sports fields and 40 regional parks cover 100,000 hectares - 10 times the area of Waiheke Island

Every day, we pick up more than 500 tonnes of general waste and 350 tonnes of recyclables

Graphic of council services typically used in a day including noise control, reporting of dumped rubbish, regional parks libraries, building consents, Auckland Zoo and MOTAT.

Key initiatives to enhance our service delivery in 2014/2015 include:

The operating cost to deliver these services in 2014/2015 is projected to be $3.3 billion.

Table 1: 2014/2015 gross operating expenditure for group by theme

Theme

$000

Transport

1,009,942

Lifestyle and culture

529,953

Water supply and wastewater

505,818

Built and natural environment

261,204

Community

192,289

Commercial and investment

178,488

Economic development

159,060

Corporate support

115,900

Solid waste

107,330

Stormwater and flood protection

101,622

Planning

69,596

Governance

55,652

Total operating expenditure

3,286,854

Paying for these services

Rates provide approximately 45 per cent of the council's operating revenue with the rest coming from grants, subsidies, development and financial contributions, user charges and fees.

We set rates at the level required to balance our budgets after:

1. maximising efficiency savings

2. ensuring we recover a fair and appropriate amount of our costs through user charges.

Your rates

The council's large investment programme means that asset related costs such as interest, maintenance and depreciation are rising faster than the rate of inflation. We are also incurring new costs due to new alcohol control legislation, the unitary plan and the need to accelerate the pace of construction of new homes. However, we have been able to find enough efficiency savings within council to cope with these rising costs with only a 2.5 per cent average rates increase for 2014/2015. This will result in an average increase of 0.1 per cent for businesses and 3.7 per cent for residents.

Table 2: 2014/2015 rates funding by theme

Theme

$000

Transport

449,375

Lifestyle and culture

380,123

Water supply and wastewater(1)

0

Built and natural environment

124,088

Community

153,931

Commercial and investment(2)

(97,199)

Economic development

122,961

Corporate support

34,466

Solid waste

80,569

Stormwater and flood protection

78,199

Planning

68,966

Governance

55,319

Total rates revenue

1,450,798

Notes:

1 Water supply and sewerage activities are funded through water charges rather than rates.

2 The commercial and investment activities generate commercial revenue and return on investments that offset the overall rates requirement. The rates revenue for this theme is therefore shown as a negative number.

Your rates continued

More information on how your rates are spent is included in the Financial Overview section in Part III of this plan. Full details of the rating policy for 2014/2015 including policies on discounts and penalties are set out in Part V.

A central government subsidy is available to some low-income homeowners. You may be eligible for a rebate on your rates through the council administered rates rebate scheme.

Your eligibility depends on the amount of rates you pay, your income and the number of dependants you have. The maximum rebate available in 2013/2014 was $595.

You also might be eligible for a reduction on your rates. The council has a remission and postponement policy which:

For more information on rates rebates or remission options please either contact the council customer service centre on 09 301 0101 or see the rates financial assistance section on our website

Rental charges for social housing

Rental charges and the level of services for social housing for older persons vary across the region due to the different policies of the former councils. For the 2014/2015 year, rental charges will increase by a uniform five per cent. This increase is more than the council rate of inflation, due to the fact that rentals have not been adjusted for at least three years and in some cases six years. For most tenants, the increase (after government assistance is factored in) will be no more than $4 a week.

Differences with service levels and rental charges will be addressed as part of the Long-term Plan 2015-2025, in consultation with tenants and Auckland Council's Seniors Panel.

Health protection licence fees

Auckland Council has adopted a region-wide health and hygiene bylaw that standardises the licensing of services such as tattooing, body piercing, hair removal, indoor tanning and nail services. The associated fees and charges are now set on a region-wide basis to reflect the bylaw change.

The benefits associated with the licensing and related services are mainly private. The new fees will recover 90 per cent of the cost of delivering those services. The details of the new fees are included in Part VI of this document.

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Key Decisions

The two key topics consulted on through the draft annual plan 2014/2015 were Auckland's proposed stadium strategy and making the Auckland Arts Festival an annual event. While the decisions relating to these topics do not impact the budget for 2014/2015, the draft annual plan provided a timely vehicle for seeking public opinion.

Feedback was also sought on the investments, services & activities planned for 2014/2015, including the projects and budget changes proposed by each local board.

Auckland's stadium strategy

Regional Facilities Auckland (RFA) has proposed a strategy that will re-allocate current funding to improve stadium facilities and their long-term financial security. The proposed changes will help the stadiums to have a more viable future and meet the future needs of event organisers, spectators and sporting codes. It will also ensure Auckland has the capacity to keep and support professional sporting franchises and deliver the range and quality of events required to maintain Auckland's reputation as a major sporting and entertainment destination.

The proposed strategy considers the current and future use of each stadium to ensure each venue is more productive, cost efficient and creates a better experience for users. The strategy also proposes managing all four stadiums under a new structure, to help the stadium network operate more effectively and consistently.

The strategy has been discussed extensively with major stakeholders who largely agree with RFA's proposals.

There are three key parts of the proposed strategy, which are:

Existing community uses of these stadiums will be retained and enhanced as far as possible. Where possible, the developments proposed in the strategy align with the relevant sporting codes' national and regional facility strategies. They also complement the facilities and services provided at other venues around Auckland.

Some aspects of the strategy are beyond the direct control of Auckland Council, some are subject to commercial negotiations between parties other than RFA or the council and many aspects of the strategy are interdependent. However, the stadium strategy is about enhancing the live sport and entertainment experience, making best use of Auckland's stadium network and strengthening the long-term success of all sporting and entertainment events.

Cost will be an important consideration for making any decisions on the implementation of the strategy. The focus will be to reallocate current funding to support better use of the facilities in order to remain at, or near to, current levels of funding.

Although there are no direct implications for the Annual Plan 2014 /2015, the consultation process was utilised to gather further public feedback on the stadium strategy.

The majority of the responses related to specific issues, rather than the overall strategy. Those responses related primarily to the specialisation of stadium functions, such as the NZ Warriors moving their playing venue from Mount Smart or speedway moving from Western Springs. The issues raised in submissions are similar to those already identified by the key sporting organisations directly affected by stadium specialisation. These organisations recognise they will need to manage customer and stakeholder concerns if and when they make decisions to move their businesses as identified within the strategy.

The council's Regional Strategy and Policy Committee will consider the submissions early in the 2014-2015 year and provide further feedback to RFA.

The feedback received through the draft annual plan process, from councillors and local boards will form part of RFA's considerations in the further development and implementation of the stadium strategy.

Aspects of the strategy, and therefore the decisions relating to those aspects, are beyond the direct control of the council and/or RFA, any significant financial impacts on council or RFA will be considered as part of council's Long-term Plan 2015-2025 (LTP).

An Annual Auckland Arts Festival

Auckland Arts Festival is a biennial event operated by the Auckland Festival Trust (AFT). The last festival was held in March 2013 and the next is scheduled for 2015. AFT is one of 10 regional amenities that receives annual operational funding through a statutory levy from Auckland Council, under the Auckland Regional Amenities Funding Act 2008. The Auckland Regional Amenities Funding Board (the funding board) administers the provisions of the Act, including determining the levy to be collected from Auckland Council, and distributing the levy as a grant to each amenity.

The AFT approached the funding board and Auckland Council to seek financial support which would enable the festival to become an annual event from 2016.

Annualising the event would require an additional $1 million in council funding each year from 2015/2016, taking Auckland Council's contribution (through the Auckland Regional Amenities levy) to $3.2 million per year.

AFT would also require additional external funding of nearly $1 million per year from other sources, such as sponsorship and grants from Creative New Zealand and other trusts. The funding from Auckland Council and other sources supplements the income AFT receives from ticket sales for festival events.

The funding board sets the annual levy under the Auckland Regional Amenities Funding Act 2008. However it asked Auckland Council, as sole funder of the levy, to indicate whether it supports the festival's goal of becoming an annual event.

Consultation indicated twice as many people support annualisation (51 per cent) than oppose it (23 per cent). However, given the extensive process required to balance priorities as Auckland Council develops its Long-term Plan 2015-2025, the council was unable to fully support annualisation on a long term basis.

Auckland Council has agreed to provide for additional funding to AFT on a short term basis for a trial annual Auckland Arts Festival in 2016. The exact amount will be set by the funding board when it sets its 2015/2016 levy.

This decision has no impact on the Annual Plan 2014/2015. The additional funding will be provided in 2015/2016 and 2016/2017. The council needed to make a decision at this time because:

the funding board will make its decision on the levy for 2015/2016 before consultation could be undertaken through the Long-term Plan 2015-2025 process

AFT requires certainty of its funding in advance as planning for each festival begins at least 18 months ahead of time - major events are often booked two years in advance.

A trial annual festival in 2016 will allow the festival to demonstrate whether it is able to sustain the 2013 audiences on an annual basis and give the council more evidence to make a decision about making a long term commitment to funding an annual festival.

Local board activities for 2014/2015

Proposed projects and budget changes for each Local board were also consulted on as part of the Draft Annual Plan 2014/2015 (Volume 2). Decisions are set out in each Local board agreement in Volume 2.

Other decisions

Other decisions made by the council following consultation on the draft Annual Plan 2014/2015 included providing additional funding for:

Feedback received through the draft annual plan process indicated concern about the affordability of rates increases and debt levels. Work has now began on the development of our next Long-term Plan 2015-2025, which will involve a number of significant decisions to balance delivery of the Auckland Plan with affordability.

However, the emergence of new cost pressures for 2015/2016 and the lagged impact of the changes in capex budget means that action would need to be taken in 2014/2015 to provide a timely response to pressure on rates increase for 2015/2016.

Auckland Council has therefore decided to undertake a review of the 2014/2015 group capital programme with a target of reducing or deferring $300 million of rates-funded capital expenditure.

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Our strategic framework

This annual plan has been shaped by Auckland Council's vision for the future outlined in our key strategic planning documents - the Auckland Plan (adopted in March 2012) and the Long-term Plan 2012-2022.

These plans set the goals and outcomes that the community wants us to achieve, and together these provide the overarching strategic direction for our decisions, projects and priorities. These plans also reflect our commitment to our Māori identity and advancing the position of Māori in our community.

Implementing the Auckland Plan

The Auckland Plan is the council's strategy to make Auckland an even better place than it is now, and create the world's most liveable city. It describes the kind of place Aucklanders have told us they want, and outlines what is needed to achieve this. We are implementing this vision year by year by providing services and facilities that will enable us to reach our desired outcomes.

These activities have shaped the development of this annual plan and have been reflected in the themes, activities and budgets of the council projects. Work is continuing to ensure stronger alignments in future annual and long-term plans.

Seven community outcomes have been identified that represent what we want Auckland to be in 2040, and they have guided our decision-making for this annual plan. They are:

1. a fair, safe and healthy Auckland

2. a green Auckland

3. an Auckland of prosperity and opportunity

4. a well-connected and accessible Auckland

5. a beautiful Auckland that is loved by its people

6. a culturally rich and creative Auckland

7. Te Hau o Te Whenua, Te Hau o Te Tangata - a Māori identity that is Auckland's point of difference in the world.

For further information on these outcomes, see Part II of this volume.

Transforming Auckland Council

To deliver on our vision to make 'Auckland the world's most liveable city', the council recognises that it must improve its performance across a number of areas. To achieve this, the council has a transformation programme in place. This programme focuses on creating better customer service experiences, improving operational efficiency to control costs and building a staff culture of continuous improvement and performance.

Notable achievements in recent months include:

To deliver on its commitments to Auckland, the transformation programme will continue for the next three to five years to ensure Auckland Council continues to improve performance.

Our commitment to Māori

The council is committed to enabling and supporting mana whenua and mataawaka aspirations and providing opportunities for Māori to contribute to the future well-being of Auckland.

The council is subject to a wide range of legal obligations in relation to Te Tiriti o Waitangi/the Treaty of Waitangi and/or to Māori. These commitments are articulated in the council's key strategic planning documents - the Auckland Plan and the LTP 2012-2022. The overarching outcome being sought is 'a Māori identity that is Auckland's point of difference in the world'. This is expressed through the transformational shift 'significantly lift Māori social and economic well-being' and the council's strategic direction is to 'enable Māori aspirations through recognition of Te Tiriti o Waitangi/the Treaty of Waitangi and customary rights'. To deliver on this, council is committed to ensuring the integration of Māori responsiveness as part of our decision-making processes, policy thinking, capability building and provision of services.

Mayoral priority project

As part of our commitment to Māori, the following mayoral priority areas have been identified as a focus for making contributions to Māori outcomes over the course of this annual plan. The priority areas, strategic actions and how we will deliver them are:

Priority area

Strategic action

Delivery of strategic action

Major events

Explore a Māori event

Complete consultation and feasibility for a signature Māori event and continue to provide funding to Māori events through the contestable regional events fund

Tāmaki Transformation Programme

Provide opportunities for affordable housing, marae and associated education and cultural facilities

Partner with iwi to strengthen the role of marae, work with iwi to protect cultural landmarks, work with Māori to progress options for affordable housing in Tāmaki

The Southern Initiative

Scope a project to address Māori interests

Strengthen governance through mataawaka representation on the Steering Group and deliver Māori outcomes through prioritised action plans

Transport walking and cycling infrastructure

Incorporate Te Reo signage/narrative, Māori design and public artworks

Continue to engage mana whenua on major projects using the Te Aranga Māori urban design framework, identify specific Te Reo signage and Māori art projects in the cycle and walking programme

Stormwater Investment

Incorporate Matauranga Māori

Continue day-lighting and restoration of streams with Māori significance

Unitary Plan

Provide funding for mana whenua engagement, use iwi management plans, and other Māori provisions and protect sites of significance

Give effect to the Te Tiriti o Waitangi/Treaty of Waitangi provisions in the Resource Management Act and identify and protect sites of significance to Māori.

The council also recognises the important role the Independent Māori Statutory Board (IMSB) plays in advocating for issues of significance for Māori and ensuring the council fulfils its statutory obligations to Māori, including statutory provisions related to Te Tiriti o Waitangi/the Treaty of Waitangi. The council is committed to continued working with the IMSB to achieve its purpose.

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Part II: Our activities

Introduction to themes and groups of activities

The information in this chapter will provide you with a good understanding of Auckland Council's anticipated activities over the 2014/2015 year. The services and initiatives provided by the council are grouped into 12 themes, which are made up of groups of activities and activities.

We have identified the following seven key community outcomes, which are the key goals of the Auckland Plan. They are what we want Auckland to be in 2040, and they have guided our decision-making for this annual plan.

Each group of activities contributes to one or more of those outcomes.

Symbols guide

A fair, safe and healthy Auckland

Auckland is a strong and equitable society where social and economic disadvantage is reduced, particularly for children and young people. It has strong families and cohesive communities. People value the excellent services available to them and participation in civic activities is significantly higher than at present. Aucklanders are healthier, more active and live in higher quality housing than in 2013.

Healthy icon.

An Auckland of prosperity and opportunity

Auckland is a global city with a strong and vibrant economy providing ample business growth and job opportunities. We are technological innovators with strong high tech business clusters that work with our excellent tertiary institutes and make use of innovation and ideas from their research. The region is home to many flourishing small and medium sized businesses. The city centre and waterfront are vibrant, attractive and well developed. We have many business areas in villages and hubs across the city that provides local employment. Auckland has strong connections internationally.

Prosperous icon.

A green Auckland

Our waterways and coastlines are cleaner, healthier and full of life. We protect the natural environment and are recognised for our clean air, quality water supplies and low greenhouse gas emissions. Our urban development is world-leading. Many Aucklanders prefer to use public transport or telecommute, our energy supply is resilient (and sustainably sourced) and our households are energy efficient. Our richly bio diverse city is well endowed with tree lined streets, networks of parks and protected areas of native bush and wetlands. We leverage existing expertise and our clean and green reputation to develop important industries in leading-edge, green technology.

Green icon.

A well connected and accessible Auckland

Auckland's infrastructure is well planned, built to last, has kept up with growth and meets the needs of its communities and the economy. There is an effective, efficient and integrated transport system, offering choices, including a completed road network and public transport that is preferred by the majority of commuters The movement of people and freight around greater Auckland is considerably easier than it is today. Our sea and airports continue to play a crucial role in New Zealand's export economy and we have a world class telecommunications network including high speed broadband.

Connected icon.

A beautiful Auckland that is loved by its people

Auckland remains one of the most beautiful cities in the world, offering superb lifestyle opportunities in a quality environment. It has vibrant urban and neighbourhood areas full of character, stunning coastal areas with clean and attractive beaches, many recreational opportunities, and rural areas that are easy to access and enjoy. Communities take great pride in their surroundings and work together with council to maintain and improve those areas. Aucklanders love exploring their diverse city in town and country and visitors are drawn to explore those attractions.

 

Loved icon.

A culturally rich and creative Auckland

Arts and culture are alive and well and part of everyday life. We have a year-round arts and cultural programme that is world class and offers something for everyone. Our major arts and cultural institutions are known internationally for their excellence and innovation and are major tourist draw cards. The many local arts and cultural events are popular and well attended and contribute to the export earnings of our creative industries.

Creative icon.

Te Hau o Te Whenua, Te Hau o Te Tangata - A Māori identity that is Auckland's point of difference in the world

Mana whenua, who are the original inhabitants of Tāmaki Makaurau, and other Māori originating from across Aotearoa/New Zealand living in Auckland have the opportunity to contribute to the social, cultural, economic and environmental success of Auckland. In doing so, the Treaty of Waitangi is appropriately recognised and provided for through the statutory obligations of the Auckland Council. The celebration of Māori culture and identity highlights Auckland's point of difference with the rest of the world. This provides opportunities that benefit all.

Maori identity icon.

Group of activities financial statements

The prospective group of activities statements have been prepared on a full group basis. They include the activities and services provided by the Auckland Council, being the parent entity, and, where appropriate, the activities and services provided by those entities that comprise the Auckland Council group entity (including all subsidiaries, associates and joint venture arrangements). An outline of the Auckland Council group and the basis for consolidation is set out in the notes to the prospective financial statements in Part III of this volume.

Expenditure and income by group of activity

Auckland Council group

Financial year ending 30 June 2015
$000

Operating expenditure
(including depreciation)

Capital expenditure

Theme

Group of activity

Expenditure

Income

Net expenditure

Total

Governance

Governance and democracy services

23,979

0

23,979

0

 

Local governance

31,673

244

31,429

2,526

Planning

Planning and strategy

69,597

342

69,255

4,178

Commercial and investment

Commercial

25,010

39,222

(14,212)

18,231

 

Investment

159,719

262,634

(102,915)

77,264

Economic development

Regional economic strategy and initiatives

26,162

325

25,837

33,421

 

Local economic development

29,618

1

29,617

21,650

 

Tourism, major events and industry development

57,107

8,934

48,173

1,700

 

Waterfront development

49,037

28,104

20,933

26,439

Built and natural environment

Environment and heritage protection

49,705

865

48,840

12,812

 

Local built and natural environment

3,435

0

3,435

2,267

 

Regulation

208,077

141,771

66,306

12,465

Solid waste

Waste and recycling services

107,329

26,195

81,134

8,486

Stormwater and flood protection

Stormwater management

116,673

0

116,673

80,350

 

Flood protection and control

4,910

0

4,910

16,002

Water supply and wastewater

Water supply

191,803

166,174

25,629

163,055

 

Wastewater treatment

315,837

310,206

5,631

160,346

Transport

Public transport and travel demand management

549,936

256,687

293,249

368,630

 

Roads and footpaths

413,512

49,764

363,748

450,051

 

Parking and enforcement

50,736

81,421

(30,685)

7,054

Community

Cemeteries and crematoria

6,755

7,553

(798)

3,255

 

Emergency management

7,759

187

7,572

1,091

 

Regional library services

49,241

2,582

46,659

19,236

 

Local libraries

59,826

780

59,046

26,598

 

Regional community services

39,277

8,705

30,572

1,370

 

Local community services

31,775

7,617

24,158

11,947

Lifestyle and culture

Regional arts, culture and events services

17,754

1,108

16,646

2,943

 

Local arts, culture and events services

21,991

1,253

20,738

13,087

 

Regional event facilities

64,471

32,083

32,388

19,175

 

Regional parks services

46,337

3,229

43,108

67,626

 

Local parks services

188,666

827

187,839

96,797

 

Regional recreation services

23,858

1,931

21,927

0

 

Local recreation services

62,304

27,440

34,864

43,548

 

Regional collections and amenities

107,377

15,559

91,818

4,891

Corporate support

Organisational support

106,277

30,231

76,046

103,279

 

Capital expenditure deferrals

 

 

 

(206,570)

Adjustments

Less internal rates elimination

(46,470)

 

(46,470)

 
 

Amortisation of weather tightness provision not included in activity statements

15,801

 

15,801

 
 

Add rates, development contributions and capital subsidies included in operating revenue

 

1,734,230

(1,734,230)

 

Total per statement of comprehensive income

3,286,854

3,248,204

38,650

1,675,200

> Back to Contents of this volume

Governance

Through its governance activities the council enables decision-making and actions to meet the current and future needs of Auckland's communities.

The Auckland Council represents 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, the council controlled organisations (CCOs), the Independent Māori Statutory Board (IMSB) and a number of advisory panels and boards.

The council is committed to enabling and supporting mana whenua and mataawaka aspirations and providing opportunities for Māori to contribute to the future well-being of Auckland. Achieving this requires ensuring Māori are fully engaged in decisions concerning matters of significance to them. These matters include decisions of the governing body, local boards and CCOs.

Contribution to the Auckland Plan

The seven community outcomes are the key goals of the Auckland Plan. The groups of activities within this theme are listed below showing how they contribute to delivering these outcomes.

Community outcome

Healthy icon.

Prosperous icon.

Green icon.

Connected icon.

Loved icon.

Creative icon.

MaoriIdentity

Group of activities

Governance and democracy

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Local governance

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Governance activities support the council's contribution to a strong, inclusive and equitable society that provides opportunity for all Aucklanders by ensuring that:

Key priorities contributing to Māori outcomes

Key priorities planned for 2014/2015 that contribute to achieving Māori outcomes include:

Group of activities: Governance and democracy

The activities within this group lie at the heart of ensuring our governance is both effective and representative through providing strong and efficient regional leadership.

The following activities are delivered:

Key priorities for 2014/2015

Over the next year, council has identified the following key priorities:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Manage council elections and by-elections through fair and transparent processes

Percentage of eligible residents who voted in the local elections

No elections held

40%

40%

The number of candidates per available seat (excludes local board elections)

No elections held

2.5

2.5

The number of candidates per available seat for local board elections

No elections held

3

3

Number of complaints regarding electoral processes upheld

No elections held

0

0

Ensure the community can participate and contribute to governing body decision-making

Percentage of residents who feel they can participate in governing body decision-making

26%

50%

50%

 

Percentage of Māori residents who feel they can participate in governing body decision-making

30%

Maintain or improve

50%

 

Percentage of formalised relationship arrangements between council and mana whenua

53%

100%

100%

 

Percentage compliance with statutory requirements for publishing agendas and minutes

99%

100%

100%

 

Number of complaints regarding council democratic processes upheld by the Auditor General or Ombudsman

0

0

0

Ensure Auckland Council is able to govern its CCOs effectively and hold them to account

Percentage of CCO related LTP measures that met targets

81%

90%

90%

 

Percentage of CCO related monitoring and accountability requirements that met targets

100%

90%

90%

Note to table:

Further explanation, where applicable, for the above measure and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Elections

448

0

448

0

Independent Māori Statutory Board support

3,104

0

3,104

0

Mayoral office

5,341

0

5,341

0

Monitoring of council-controlled organisations

1,285

0

1,285

0

Regional governance and democracy

13,801

0

13,801

0

Total

23,979

0

23,979

0

Group of activities: Local governance

This group of activities involves the provision of advice and support to local boards so they can:

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Ensure the community can participate and contribute to local board decision-making

Percentage of residents who feel they can participate in local board decision-making

25%

Maintain or improve

50%

 

Percentage of Māori residents who feel they can participate in local board decision-making

29%

Maintain or improve

50%

 

Percentage compliance with statutory requirements for publishing agendas and minutes for local board meetings

100%

100%

100%

Note to table:

Further explanation, where applicable, for the above measure and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Local planning, policy and governance

31,673

244

31,429

2,526

Total

31,673

244

31,429

2,526

> Back to Contents of this volume

Planning

Through its planning activities, the council plays a key role in achieving the vision of creating the world's most liveable city. The planning, strategy development and resource management functions are particularly important in Auckland due to the scale and complexity of our area resulting from the amalgamation of former councils into the Auckland Council.

This group is also involved in protecting and enhancing Auckland's character, history and environment, as well as public health and safety, while ensuring Auckland remains an attractive and desirable city that is managing the pressures of growth.

Contribution to the Auckland Plan

The seven community outcomes are the key goals of the Auckland Plan. The groups of activities within this theme are listed below showing how they contribute to delivering these outcomes.

Community outcome

Healthy icon.

Prosperous icon.

Green icon.

Connected icon.

Loved icon.

Creative icon.

Maori identity icon.

Group of activities

Planning and strategy

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Through the planning activities, the council led the development of the Auckland Plan and is responsible for ensuring its implementation across council through the long-term and annual plans. The group of activities within this theme monitor the delivery of key projects and coordinates the council's strategy and policy forward work programme, which prioritises the development of key strategies required to deliver the Auckland Plan.

Key priorities contributing to Māori outcomes

Key priorities planned for 2014/2015 that contribute to achieving Māori outcomes:

The proposed Unitary Plan, which was notified on 30 September 2013, contains a significant number of regulatory tools that will advance the delivery of Māori outcomes, including:

Through the development of plans, policies and bylaws we intend to ensure statutory obligations are met in effectively communicating and consulting with Māori to ensure that significant matters affecting Māori are taken into account.

Group of activities: Planning and strategy

The activities in this group help translate strategy into action for Auckland. We have a unique planning framework supporting the mayor's vision, and are focused on tracking progress to ensure our plans remain relevant, are focused on delivering the Auckland Plan and adapt to changing circumstances and community preferences.

The following activities are delivered:

Key priorities for 2014/2015

A key priority is the progression of the notified Unitary Plan, which will replace all of the district plans and regional plans of the Auckland region. The Unitary Plan is one of the key tools for implementing the Auckland Plan and sets out the rules for what people can do on their land.

Other activities include:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Produce all plans and agreements in accordance with legislative requirements

Percentage compliance with legislative planning requirements

100%

100%

100%

 

Percentage of unitary and area plan changes and Notices of Requirement processed within statutory timeframes

100%

100%

100%

 

Percentage of adopted core strategies, policies and plans that were developed with Māori participation

80%

Maintain or improve

85%

 

Percentage of adopted core strategies, policies and plans that include Māori outcomes and/or indicators

80%

Maintain or improve

85%

Implement area spatial planning initiatives for town centres, rural centres, precincts, corridors, and new growth areas

Percentage of area spatial plans and initiatives that met agreed milestones

80%

90%

90%

Monitor and report on social, economic, environmental, and cultural well-being accurately and on time

Availability of Headline Indicators report

100%

100%

100%

 

Percentage compliance with annual quality rating for ISO9001:2008 accreditation

100%

100%

100%

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Long-term and annual planning

8,143

0

8,143

0

Research and monitoring

6,895

0

6,895

0

Spatial, strategic and infrastructure planning

18,199

0

18,199

4,178

Transport strategy

1,772

342

1,430

0

Unitary and area planning

34,588

0

34,588

0

Total

69,597

342

69,255

4,178

> Back to Contents of this volume

Commercial and investment

Through its commercial and investment activities, the council achieves the optimal financial returns from its commercial interests and investments while supporting broader goals that help Auckland to become the world's most liveable city.

Primarily, we use CCOs - Auckland Council Investments Limited (ACIL) and Auckland Council Property Limited (ACPL) - to deliver these activities.

Contribution to the Auckland Plan

The seven community outcomes are the key goals of the Auckland Plan. The groups of activities within this theme are listed below showing how they contribute to delivering these outcomes.

Community outcome

Healthy icon.

Prosperous icon.

Green icon.

Connected icon.

Loved icon.

Creative icon.

Maori identity icon.

Group of activities

Commercial

 

Yes

 

Yes

Yes

 

Yes

Investment

 

Yes

 

Yes

 

 

 

Through the commercial and investment activities, funding is provided to support implementation of the Auckland Plan. This includes:

Key priorities contributing to Māori outcomes

Key activities/priorities planned for 2014/2015 that contribute to achieving Māori outcomes include:

 

Group of activities: Commercial

The activities within this group assist council to deliver the best financial returns from its commercial interests while supporting broader goals that help Auckland to become the world's most liveable city.

The following activities are delivered:

Key projects for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target

2013/2014

Annual Plan target

2014/2015

Manage commercial property to optimise returns

Return on investment (ROI) on commercial properties on a like for like basis

3.94%

Maintain or Improve

Greater than or equal to 4%

 

Net surplus from property portfolio on a like for like basis

$21.1 million

Maintain or Improve

Greater than or equal to $21.1 million

Manage quality and financially prudent City Parks Services

Percentage of service requests completed on time

99%

90%

90%

 

Net surplus from City Park Services

11.1%

8%

8%

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Commercial property

21,274

31,292

(10,018)

15,739

Holiday parks

1,941

3,036

(1,095)

19

Parks management services

1,795

4,894

(3,099)

2,473

Total

25,010

39,222

(14,212)

18,231

Group of activities: Investment

This activity contributes to fulfilling the council's responsibility to be a good owner and manager of its major shareholdings. Through ACIL, these activities deliver an efficient structure for managing major investments including Ports of Auckland Limited (POAL), Auckland International Airport Limited (AIAL) and Auckland Film Studios Limited (AFSL).

While these shareholdings are legally held by ACIL, these investments are ultimately owned by the public of Auckland.

ACIL also manages the council's Diversified Financial Assets Portfolio.

Key priorities for 2014/2015

The focus will be on achieving the targets outlined in ACIL's 2014-2017 SOI.

In particular, ACIL will focus on:

Over the next year, ACIL will make a capital investment ($77.3 million) designed to maintain and improve POAL's current revenue earning capacity and provide higher returns, which will be funded by POAL and not by Council.

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Manage council investments to optimise returns

Return on equity (ROE) for ACIL group

11.2%

6.7%

12.9%

 

Rolling 10 year return for diversified financial assets portfolio

18.4%

Equal or exceed return on reference portfolio

Equal or exceed return on reference portfolio

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Major shareholdings and investments

159,719

262,634

(102,915)

77,264

Total

159,719

262,634

(102,915)

77,264

> Back to Contents of this volume

Economic development

The council is committed to driving economic growth and development for Auckland, not only for the city but for New Zealand's future prosperity. We have developed an Economic Development Strategy (EDS) to identify how Auckland can improve its economic performance.

The council, through regional and local economic strategies and initiatives, works with Auckland Tourism Events and Economic Development (ATEED) and Waterfront Auckland to provide an integrated approach to promoting industry, tourism, major events and the sustainable regeneration of the waterfront.

Contribution to the Auckland Plan

The seven community outcomes are the key goals of the Auckland Plan. The groups of activities within this theme are listed below showing how they contribute to delivering these outcomes.

Community outcome

Healthy icon.

Prosperous icon.

Green icon.

Connected icon.

Loved icon.

Creative icon.

Maori identity icon.

Group of activities

Regional economic strategy and initiatives

Yes

Yes

Yes

Yes

 

Yes

Yes

Local economic development

 

Yes

 

Yes

Yes

Yes

Yes

Tourism, major events and industry development

 

Yes

 

 

Yes

Yes

Yes

Waterfront development

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Economic development activities contribute to achieving the goals of the Auckland Plan and the EDS by working with our other CCOs, the business community and government to transform and grow our economy to deliver opportunity and prosperity, jobs and growth.

Key priorities contributing to Māori outcomes

Key priorities planned for 2014/2015 that contribute to achieving Māori outcomes include:

Group of activities: Regional economic strategy and initiatives

Our goal is to develop Auckland as a vibrant, business-friendly world class city through enhancing both our domestic and international connectedness, and becoming an innovation hub of the Asia-Pacific Rim. The activities in this group aim to support new transport, broadband and telecommunications infrastructure; deliver transformational projects such as tertiary clustering; and foster and encourage entrepreneurship and innovation.

We seek to invest in people to grow skills and qualification levels of local workforces, through the Southern Initiative and in conjunction with COMET Auckland (previously known as City of Manukau Education Trust).

The following activities are delivered:

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Support economic development of the region and contribute to the national economy

Auckland's OECD economic performance rating

69

69

69

 

Percentage of Auckland Economic Development Strategy KPIs that are met or improving

78%

Maintain or improve

78%

 

Number of business opportunities facilitated through international relationships

50

60

60

 

Number of economic initiatives with Māori

16

Maintain or improve

16

Implement strategies for enhancing the city centre and coordinate large scale transformation projects

Percentage of transformation and city centre masterplan projects delivered on time and within budget

88%

85%

90%

 

Percentage of city transformation projects contributing to Māori outcomes

100%

Maintain or improve

100%

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

City transformation projects

18,421

325

18,096

33,271

Economic strategy and initiatives

7,741

0

7,741

150

Total

26,162

325

25,837

33,421

Group of activities: Local economic development

Through its local economic development activities, we are building economic resilience, supporting employment opportunities and creating a sense of local community through our Business Improvement District (BID) partnership programmes and by creating attractive, well-maintained streets and town centres that are safe and vibrant.

The following activities are delivered:

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

For projects and priorities in your local area, please see the relevant local board agreement in Volume 2 of this document.

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Develop local business precincts and town centres as great places to do business

Percentage of Business Associations meeting their Business Improvement District (BID) Partnership Programme obligations

100%

75%

85%

Develop and maintain safe, clean and vibrant commercial town centres and street environments

Percentage of residents satisfied with the cleanliness of their local town centre

59%

65%

65%

 

Percentage of residents satisfied with the quality and maintenance of the street environment

43%

65%

60%

 

Percentage of agreed street environment upgrade programmes and initiatives completed on time and within budget

100%

80%

90%

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Local business area planning and development

18,149

0

18,149

0

Local street environment and town centres

11,469

1

11,468

21,650

Total

29,618

1

29,617

21,650

Group of activities: Tourism, major events and industry development

The activities in this group help to promote and attract businesses and visitors to Auckland to help lift the economic wellbeing, and support and enhance the ability of the region to compete internationally.

The following activities are delivered:

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Attract, facilitate and fund delivery of major events

Percentage of attendees satisfied with major events overall

87%

85%

85%

 

Number of major international events attracted or facilitated

9

5

5

 

Estimated number of attendees at major events (million)

1.05

1.45

1.52

 

Return on Regional Investment (RORI) from major events invested in ($million) 

39.1

40

47

Promote and develop Auckland as a national and international tourist destination

Percentage of customers satisfied with visitor information centres and services

94%

90%

90%

 

Number of visitors to Auckland (million)

13.7

13.3

13.7

 

Number of visitor nights in Auckland (million)

26.7

25.2

26.6

 

Spend by visitors in Auckland ($million)

3,447

3,628

5,194 (1)

Deliver information, advice and programmes to attract and develop businesses and a skilled workforce

Percentage of stakeholders satisfied with provision of business advice, start-up, training and mentoring programmes

95%

85%

85%

 

GDP Global investment promotion agency (IPA) benchmarking (1)

Biannual measure 55% (2011/2012)

65%

65%

 

Total GDP in targeted sectors (marine, transport and logistics, IT, Food-beverage, film, bioscience, creative/digital, export education) compared with total Auckland GDP

30.7%

Improve

Improve

Note:

1.  Target is forecast for calendar year 2014. The 2014/2015 target includes electronic card transactions as calculated by the Ministry of Business, Innovation and Employments methodology.

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Business attraction and development

17,665

1,689

15,976

1,500

Major events

24,534

4,072

20,462

0

Tourism and visitor centres

14,908

3,173

11,735

200

Total

57,107

8,934

48,173

1,700

Group of activities: Waterfront development

Through the waterfront development activities, we will continue to deliver the waterfront key projects and upgrades in accordance with the vision and goals of the Waterfront Plan.

The following activities are delivered:

Waterfront commercial initiatives - securing investment and facilitating private sector development of Waterfront Auckland land, buildings and water space assets for commercial return. Coordinating private sector with public projects, managing property and assets, including wharves and car parks.

Waterfront marina operations - managing marina facilities and upgrades, and providing moorings for a wide variety of vessels at Westhaven, Viaduct Harbour, Hobson West, and Okahu Bay. Provide fishing industry berths, and a public boat ramp at Westhaven.

Waterfront public initiatives- developing waterfront public spaces and infrastructure, such as: waterfront-wide promenade and cycleway, street upgrades, and Wynyard Central. Provide place management and activation to attract visitors. Managing the clean-up of contaminated land under streets.

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Deliver initiatives to make the waterfront dynamic, well-connected and safe

Number of annual visitors to the waterfront

792,000

Maintain or improve

874,000

 

Hectares of public open space on the waterfront

17.2

18.0

18.0

 

Percentage of annual waterfront public works programmes achieved on time and within budget

93%

100%

100%

 

Manage assets and services in a way that attracts investment and optimises financial returns

Number of employees working in Wynyard Quarter area

4,660

5,020

4,810

 

Return on investment (ROI) on commercial waterfront activities and marinas

3.58%

8%

8%

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Waterfront commercial initiatives

17,819

11,781

6,038

5,021

Waterfront marina operations

14,114

15,203

(1,089)

5,292

Waterfront public initiatives

17,104

1,120

15,984

16,126

Total

49,037

28,104

20,933

26,439

> Back to Contents of this volume

Built and natural environment

Through its built and natural environment activities, the council aims to protect and enhance Auckland's natural environment through monitoring and managing our air, land and water, promoting urban design, conserving our historic places and regulating a number of associated activities.

Contribution to the Auckland Plan

The seven community outcomes are the key goals of the Auckland Plan. The groups of activities within this theme are listed below showing how they contribute to delivering these outcomes.

Community outcome

Healthy icon.

Prosperous icon.

Green icon.

Connected icon.

Loved icon.

Creative icon.

Maori identity icon.

Group of activities

Environment and heritage protection

Yes

 

Yes

 

Yes

Yes

Yes

Local built and natural environment

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Regulation

Yes

Yes

Yes

Yes

Yes

 

Yes

The council is committed to minimising adverse effects of development on the environment in delivering a green and beautiful Auckland that is loved by its people. To deliver on these outcomes, the council is:

Key priorities contributing to Māori outcomes

Key priorities planned for 2014/2015 that contribute to achieving Māori outcomes include:

Group of activities: Environment and heritage protection

The activities in this group contribute to ensuring our unique natural and built environments are protected and preserved for generations to come. Retaining character and protecting the natural environment are central both to the region and to the identity of individual communities and contribute to our sense of belonging and well-being. Effective management and maintenance of these assets contribute to Auckland's economic prosperity through activities such as tourism, and ensuring it is a great place to live and work.

We plan, guide, regulate and support the protection of our environment and heritage; and using urban design principles, we help manage urban growth and ensure we have continuous improvements in Auckland's overall liveability.

The following activities are delivered:

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Monitor and report on the quality and health of the region's air

Number of sites exceeding regional air quality targets for NO2

0

0

0

 

Number of sites exceeding regional air quality targets for PM2.5 (particles less than 2.5 microns in size)

3

0

0

Manage land use and development to safeguard the region's environment, productivity and economic value of soil

Percentage of landfill aftercare resource consents achieving category 1 or 2 compliance

100%

96%

97%

Monitor and protect freshwater ecosystems to maintain water quality and biodiversity

Proportion of stream samples that exceed red alert level for stock watering

17%

Less than 12.5%

Less than 12.5%

Protect the natural character of the coast from inappropriate development

Perception of good balance between built areas and natural environment on the coastline

73%

70%

70%

 

Percentage of environmentally significant catchments with catchment management plans (CMPs)

6%

10%

15%

Provide safe access to beaches and coastal areas for recreation

Proportion of time bathing beaches are suitable for contact recreation

93%

92%

92%

Provide funding, support, and environmental education to schools and communities

Number of students participating in the Learning Through Experience programme

23,927

22,000

22,000

 

Number of schools registered for Enviroschools programme

176

160

160

 

Reduction in emission of air pollutant PM10 (Kg)

1610

1400

2100

Protect and enhance indigenous biodiversity and natural heritage resources

Number of hectares of new habitat established on regional parks

9

8

8

 

Percentage of indigenous ecosystems under active management

Not reported

Maintain or improve

5%

 

Percentage of threatened species under active management

17.7%

Maintain or improve

29%

Reduce the impact of pest animals, plants, and pathogens on the natural environment

Number of hectares under community pest control

73,300

60,000

62,000

 

Proportion of the region where possum populations are maintained under five per cent (residual trap catch index)

47%

Maintain or improve

50%

 

Percentage of closed tracks in the Waitākere Ranges that have Kauri dieback disease. 

0%

Less than 10% increase

Less than 10% increase

 

Percentage of open tracks in the Waitākere Ranges that have Kauri dieback disease. 

25%

Establish target

Reduce

Provide support to protect and conserve the region's historic heritage

Number of historic heritage resources formally protected in council regional and district plans and/or the unitary plan

2,239

2,240

2,600

 

Number of sites of Māori significance including waahi tapu formally protected or scheduled in council regional and district plans or the unitary plan

45

Maintain or improve

61

 

Number of sites and places of value to mana whenua formally protected and scheduled in council regional and district plans or the unitary plan

New measure

New measure

3,600

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Air, land and water monitoring and management

13,885

460

13,425

4,084

Cultural and built heritage protection

8,623

5

8,618

8,728

Environmental strategy and policy

1,505

0

1,505

0

Natural heritage protection and biosecurity

21,016

379

20,637

0

Urban design management

4,676

21

4,655

0

Total

49,705

865

48,840

12,812

Group of activities: Local built and natural environment

This activity contributes to ensuring our local natural and built environments are protected and preserved for generations to come. This is achieved through wetland and habitat restoration, species management, native planting, support for the appropriate use and re-use of heritage sites and items, funding to help maintain scheduled heritage sites and providing free public information on heritage and related issues.

Local boards support a range of initiatives to restore significant environments and waterways through participating in environmental programmes and partnering with trusts and volunteers; making decisions on local stormwater quality projects and negotiating variations to region wide service levels for services such as refuse and recycling.

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

For projects and priorities in your local area, please see the relevant local board agreement in Volume 2 of this document.

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Provide leadership and support to protect and conserve the region's natural environment and cultural heritage

Number of environmental programmes led or supported

69

Maintain or improve

83

 

Number of environmental programmes with Māori participation

21

Maintain or improve

10

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Local environment and heritage protection

3,435

0

3,435

2,267

Total

3,435

0

3,435

2,267

 

Group of activities: Regulation

The activities in this group have a large impact on everyday life in communities across Auckland by providing strong public health and safety guidelines for activities ranging from land use and subdivision consents to environmental health, animal management and bylaw enforcement.

The following activities are delivered:

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan
target 2013/2014

Annual Plan target 2014/2015

Deliver a customer focused building consents and compliance monitoring service that meets statutory requirements

Percentage of customers satisfied with the overall quality of building control service delivery

64%

60%

60%

 

Percentage of building consent applications processed within 20 working days

96%

100%

100%

 

Achieve and maintain BCA accreditation by meeting standards under the Building Act 2004

Maintain

Maintain

Maintain

 

Percentage operating cost recovery from user charges for building consents activity

101%

90%

90%

Process and monitor resource consents and engineering approvals across the region on time and within statutory requirements

Percentage of customers satisfied with the overall quality of resource consents service delivery

48%

55%

50%

 

Percentage of non-notified resource consent applications processed within 20 days

95.5%

100%

100%

 

Percentage of notified resource consent applications processed within 70 days

78%

100%

100%

 

Percentage of air, land, coastal and water consents with category 1 (full compliance) or 2 (minor non-compliance)

94%

90%

90%

 

Percentage of operating cost recovery from user charges for resource consents activity

61%

60%

60%

 

Percentage of requests by iwi for applications identified in the consents received report that are relevant and within their area of interest and are responded to within three days

New measure

100%

100%

Provide effective response services for environmental pollution incidents

Percentage of environmental pollution incidents responded to within 24 hours

100%

100%

100%

Respond effectively and fairly to excessive noise related incidents and complaints

Percentage of noise complaints responded to within 30 minutes of first report

84%

80%

80%

Protect public health in the areas of food premises and sale of alcohol licensing

Percentage of customers satisfied with the food and alcohol licensing service

77%

83%

85%

 

Percentage of alcohol licenced premises inspected at least once annually

97%

80%

90%

 

Percentage of registered food premises that are grading inspected at least once annually

123%

97%

98%

 

Percentage of all identified non-complying (D or E Grade) food premises re-inspected within one month.

90%

80%

85%

 

Percentage operating cost recovery from user charges for environmental health and licensing activity

37%

45%

45%

Provide high quality dog and stock control services to the people of the region

Percentage of customers satisfied with animal management service

60%

Greater than 70%

70%

 

Percentage of urgent animal management complaints responded to within one hour (dog attacks etc.)

99%

80%

98%

 

Percentage operating cost recovery from user charges for animal management activity

61%

60%

60%

Maintain navigational safety, respond to marine oil spills, and manage moorings

Percentage of harbour users and stakeholders satisfied with harbour management

47%

70%

70%

 

Percentage of significant risks assessed and successfully mitigated (no incidents)

100%

100%

100%

Ensure weather tightness claims are settled fairly, cost-effectively and are legally compliant

Percentage of settled weather tightness claims that met financial delegations and information and legal requirements

100%

100%

100%

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Animal management

15,959

9,405

6,554

2,165

Building consents

63,447

58,229

5,218

0

Environmental health and licensing

29,115

11,003

18,112

9,991

Land and property information

8,258

8,258

0

0

Marine safety

2,142

1,072

1,070

309

Resource consents

79,531

53,804

25,727

0

Weathertightness

9,625

0

9,625

0

Total

208,077

141,771

66,306

12,465

> Back to Contents of this volume

Solid waste

The council is on the first steps of a transformational journey towards a Zero Waste Auckland 2040.  With the support of the community, iwi/Māori and business the concept of 'waste' will eventually become obsolete and resource recovery and resource efficiency will be our key focus.

Contribution to the Auckland Plan

The seven community outcomes are the key goals of the Auckland Plan. The groups of activities within this theme are listed below showing how they contribute to delivering these outcomes.

Community outcome

Healthy icon.

Prosperous icon.

Green icon.

Connected icon.

Loved icon.

Creative icon.

Maori identity icon.

Group of activities

Waste and recycling services

Yes

Yes

Yes

 

Yes

 

Yes

Solid waste activities contribute to the Auckland Plan by:

Key priorities contributing to Māori outcomes

Key priorities planned for 2014/2015 that contribute to achieving Māori outcomes include:

Planned initiatives to implement the Waste Management and Minimisation Plan are consistent with Māori views - minimising environmental impact, providing low-impact solutions, promoting sustainable management of natural resources and providing services that meet community needs.

We recognise mana whenua responsibilities as kaitiaki and aim to ensure concerns are addressed where possible in the management of solid waste.

Group of activities: Waste and recycling services

The activities in this group aim to help communities start reducing their waste and prepare for the long-term journey towards Zero Waste. This will be achieved by making it easier for households and businesses to reuse and recycle through changes to services, education programmes and innovations before the introduction of 'disposer pays' across the region for their residual waste.

The following activities are delivered:

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Provide reliable household waste collection and disposal services

Percentage of waste collections completed on time

99.9%

99.5%

99.5%

Provide reliable waste recycling services

Percentage of waste recycling collections completed on time

99.9%

99.0%

99.0%

 

Percentage of material (refuse and recycling) collected in domestic kerbside collections that is recycled

40%

40%

40%

 

Domestic kerbside refuse per capita (kg)

149.9

Less than or equal to 160

Less than or equal to 150

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Recycling

23,184

273

22,911

3,901

Waste collection and disposal

84,145

25,922

58,223

4,585

Total

107,329

26,195

81,134

8,486

> Back to Contents of this volume

Stormwater and flood protection

Through its stormwater and flood protection activities the council manages and operates stormwater infrastructure (including treatment facilities) to minimise the impact of stormwater going into our streams, beaches, harbours and surrounding habitats. As Auckland grows, we want to protect, restore and enhance our natural environment, including improving our biodiversity, air quality, land, waters and seas.

Contribution to the Auckland Plan

The seven community outcomes are the key goals of the Auckland Plan. The groups of activities within this theme are listed below showing how they contribute to delivering these outcomes.

Community outcome

Healthy icon.

Prosperous icon.

Green icon.

Connected icon.

Loved icon.

Creative icon.

Maori identity icon.

Group of activities

Stormwater management

Yes

Yes

Yes

Yes

Yes

(Yes)

Yes

Flood protection and control

Yes

Yes

Yes

 

Yes

 

Yes

The key outcomes that these activities contribute to are a fair, safe and healthy Auckland, a green and beautiful Auckland that is loved by its people, and a prosperous Auckland.

Improving Auckland's stormwater network is a part of our commitment to quality infrastructure needed to reach the outcome of a green Auckland with waterways and coastline that are healthier and full of life. This is done by ensuring that stormwater flows are managed cost-effectively, reducing any adverse impacts on public health and safety, the environment, public and private property, and the economy and by minimising the potential for damage to both our natural and built environments and disruption in basic services should flood events happen.

Key projects contributing to Māori outcomes

Key projects planned for 2014/2015 that contribute to achieving Māori outcomes include:

As kaitiaki, water holds special value and obligations for Māori. We recognise these responsibilities and want to ensure concerns are addressed where possible in the management of the public stormwater system.

We will endeavour to use sustainable design principles and treat stormwater prior to discharge and manage floodwaters so that what returns into the ecosystem is in a clean state does not damage Māori relationships with, and use of, that resource.

Group of activities: Stormwater management

The activities in this group contribute to the management of stormwater throughout Auckland to minimise and mitigate the adverse effects of heavy rainfall. This requires infrastructure including pipes, manholes and catch pits, open channels, quality devices, inlets and outlets.

The following activities are delivered:

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Mitigate the risks of flooding by constructing and maintaining reliable, effective, sustainable and future proofed stormwater systems and networks and manage the detrimental effects of stormwater on the environment

Percentage of customers satisfied with stormwater management

55%

Greater than 50%

Greater than 50%

 

Percentage of mana whenua satisfied with stormwater management

0%

Maintain or improve

10%

 

Number of blockages in the stormwater network per 100km

6.96

Less than 20

Less than 20

 

Percentage of urgent stormwater requests responded to within two hours

93%

Greater than 85%

Greater than 90%

 

Percentage of non-urgent stormwater service requests responded to within three days

99%

Greater than 80%

Greater than 85%

 

Percentage of manhole popping requests attended to and made safe within two hours

93%

100%

100%

 

Percentage stormwater consent conditions with no justified abatement notices or enforcement proceedings

100%

100%

100%

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Network planning

6,102

0

6,102

35,543

Stormwater catchment

6,503

0

6,503

17,445

Stormwater operations and maintenance

104,068

0

104,068

27,362

Total

116,673

0

116,673

80,350

Group of activities: Flood protection and control

Through this group of activities the council services and minimises flooding across the region by protecting flood-prone buildings and environments, responding to flooding incidents, and improving the design of stormwater infrastructure.

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Plan and develop stormwater infrastructure and improve design to help alleviate flooding

Reduction of habitable floors that are below the 100 year flood plain

53

30

30

 

Percentage of catchments with accurate flood hazard mapping completed

22%

25%

30%

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Flood protection and control services

4,910

0

4,910

16,002

Total

4,910

0

4,910

16,002

> Back to Contents of this volume

Water supply and wastewater

Through its water supply and wastewater activities, the council's CCO, Watercare, provides Aucklanders with high-quality drinking water and provides a network to collect and treat wastewater before being discharged into the environment.

Contribution to the Auckland Plan

The seven community outcomes are the key goals of the Auckland Plan. The groups of activities within this theme are listed below showing how they contribute to delivering these outcomes.

Community outcome

Healthy icon.

Prosperous icon.

Green icon.

Connected icon.

Loved icon.

Creative icon.

Maori identity icon.

Group of activities

Water supply

Yes

 

Yes

Yes

 

 

Yes

Wastewater

Yes

 

Yes

 

 

 

Yes

Access to safe and reliable drinking water and the collection, treatment and disposal of wastewater is an essential part of a healthy, green and connected Auckland. Strict procedures are in place to check that the highest-quality drinking water is maintained at every stage of its journey to the customer's taps.

Effective treatment of wastewater is very important to safeguard human health and to protect our harbours and waterways. Watercare maintains its infrastructure to improve wastewater collection, reduce overflows, and ensure wastewater is treated to a standard that protects public health, and the local environment.

Key projects contributing to Māori outcomes

Key projects planned for 2014/2015 that contribute to achieving Māori outcomes include:

Group of activities: Water supply

This activity supplies Auckland with around 330 million litres of safe drinking water per day from 29 sources through a distribution network of over 8900 kilometres of pipes.

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Provide uninterrupted access to safe, clean and drinkable water

Percentage of customers surveyed satisfied with Watercare's delivery of water and wastewater services

81.4%

Greater than or equal to 80%

80%

 

Percentage compliance with MoH drinking water standards for graded plants (excluding minor or technical non-compliance)

100%

100%

100%

 

Number of unplanned water interruptions per 1,000 connected properties

7.7

Less than 10

Less than 10

 

Percentage of metropolitan water treatment plants achieving Grade A

100%

100%

100%

 

Percentage of metropolitan water supply reticulation achieving Grade a

100%

 100%

100%

 

Percentage of non-metropolitan water treatment plants achieving Grade A

100%

45%

50%

 

Percentage of non-metropolitan water supply reticulation achieving Grade a

83%

25%

 50%

 

Percentage of unplanned water shut downs restored within five hours

96.7%

Greater than or equal to 95%

Greater than or equal to 95%

 

Number of water quality complaints (taste, odour, appearance) per 1,000 water supply connections

4.6

Less than 5

Less than 5

 

Percentage of complaints being "resolved and closed" within 10 working days

97.2%

95%

95%

 

Percentage of annual potable water network losses measured as total network volume

14.8%

14%

13%

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

 

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Water supply services

191,803

166,174

25,629

163,055

Total

191,803

166,174

25,629

163,055

Group of activities: Wastewater

This activity provides collection, treatment and disposal of wastewater for Auckland's homes and businesses in a way that is safe, economical, sustainable and responsive to customer needs.

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Provide reliable wastewater services and manage discharges to maintain or improve the health of the environment

Number of sewer bursts and chokes per 1,000 properties

6.8

Less than 10

Less than 10

 

Number of dry weather sewer overflows per 100 km of wastewater pipe length per year

2.7

Less than or equal to 5

Less than or equal to 5

 

Percentage of wastewater discharged that is compliant with consent discharge requirements (excluding minor or technical non-compliance) for metropolitan areas

100%

100%

100%

 

Percentage of wastewater discharged that is compliant with consent discharge requirements (excluding minor or technical non-compliance) for non-metropolitan areas

60%

35%

35%

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Wastewater treatment and disposal

315,837

310,206

5,631

160,346

Total

315,837

310,206

5,631

160,346

> Back to Contents of this volume

Transport

The council, through its CCO, Auckland Transport, aims to provide an effective, efficient and safe transport network by connecting people and places with easy, affordable access to safe and sustainable transport choices.

Auckland Transport works closely with the New Zealand Transport Agency (NZTA), Kiwi Rail, Ports of Auckland and Auckland Airport to provide an integrated transport system.

Contribution to the Auckland Plan

The seven community outcomes are the key goals of the Auckland Plan. The groups of activities within this theme are listed below showing how they contribute to delivering these outcomes.

Community outcome

Healthy icon.

Prosperous icon.

Green icon.

Connected icon.

Loved icon.

Creative icon.

Maori identity icon.

Group of activities

Public transport and travel demand management

Yes

Yes

Yes

Yes

Yes

 

Yes

Roads and footpaths

Yes

Yes

Yes

Yes

Yes

 

Yes

Parking and enforcement

 

Yes

Yes

Yes

 

 

 

The Auckland Plan identifies the transport system as crucial to achieving the vision of Auckland as the world's most liveable city. It recognises the need for significant improvements to the transport system so that it works well for businesses, residents and visitors, supports Auckland's development, and contributes to the health and safety of its people and character of its places.

The transport activities respond to these challenges by adopting a "One Network" approach, which provides for an integrated programme of infrastructure and operations. This approach and the outcomes listed below will help achieve the goals of the Auckland Plan:

Key priorities contributing to Māori outcomes

Auckland Transport will take into account the principles of the Treaty of Waitangi in its engagement with Māori  both with mana whenua and mataawaka.

Auckland Transport will take into account Auckland Council's Māori Responsiveness Framework through the following measures.

Notes:

1 AT's Māori Engagement Framework outlines the protocols for consultation and engagement at a strategy and project level.

Group of activities: Public transport and travel demand management

The activities in this group contribute to providing a simpler, more frequent and more connected public transport system of bus, rail and ferry services. This is being achieved through the introduction of integrated ticketing and fares, new trains and buses, a redesign of the public transport route network, and the introduction of higher frequency and more reliable services.

This group of activities also includes travel demand management to focus on travel choice and reduce congestion by:

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Auckland's public transport services respond to demand and result in increased patronage

Total passenger transport patronage (000's)(1)

69,075

79,090

73,686

 

 

Rapid Transit Network rail boardings per annum (000's)

10,039

14,423

12,100

 

 

Rapid Transit Network busway boardings per annum (000's)

2,279

2,618

2,511

 

 

Quality Transit Network and Local Connector Network bus boardings per annum (000's)

51,251

56,305

53,695

 

 

Ferry boardings per annum (000's)

5,506

5,744

5,380

 

 

Public transport subsidy per passenger kilometre

$0.27

$0.27

$0.29

 

Public and customer safety and security incidents across public transport network per 1,000,000 passenger boardings

0.54

0.925

0.90

Customers are satisfied with public transport services

Percentage of public transport passengers satisfied with their PT service(2)

85%

87%

83%

 

Effective infrastructure and services for walking, cycling and ride-sharing that help reduce the number of single-occupancy car trips

Morning peak (7-9 am) car trips avoided through travel planning initiatives

14,781

12,800

16,700

 

 

Number of walking trips into the CBD in the morning peak

4,633

5,511

5,500

 

Number of cycling trips throughout the region(3)

122,201 (AM peak)

835,446 (all day)

97,200

142,200 (AM peak)

958,000 (all day)

Notes:

1. The targets have been reduced primarily in rail due to short term service disruptions from the rail electrification project.

2. Target changed due to change in methodology.

3. Measure and target changed to take account of new measurement approach. Total of morning peak cycle trips is recorded by automatic counters at multiple locations in the region.

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Bus

200,010

106,232

93,778

47,807

Ferry

23,038

11,586

11,452

4,300

Management of travel demand

11,812

7,010

4,802

0

Multi-modal

54,961

23,947

31,014

16,175

Rail

260,115

107,912

152,203

300,348

Total

549,936

256,687

293,249

368,630

Group of activities: Roads and footpaths

The activities in this group contribute to our social and economic well-being by providing a properly connected and well-maintained road and footpath network to ensure people and goods can move efficiently around Auckland.

The following activities are delivered:

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Auckland's arterial road moves people and goods effectively and efficiently

 Arterial road network productivity (1)
(Percentage of road corridor productivity maintained or improving on key arterial routes(2))

55.40%

51% of the ideal achieved

53% of the ideal achieved

 

Travel times along strategic freight routes during the inter-peak (9am-4pm) (3)

Not achieved on all routes

Maintain travel times for 85th percentile on all nominated freight routes

Maintain travel times for 85th percentile on all nominated freight routes

 

Total fatal and serious injuries on local road network (4)

354 (year to 31 Dec 2012)

 

2.0% reduction

Fewer than 340

(2.66% reduction from previous year)

 

 

Road maintenance standards (ride quality) as measured by smooth travel exposure (STE) for all urban and rural roads

STE for urban roads: 82%

STE for rural roads: 93% for rural roads

New measure

Not less than 82% for urban roads and not less than 92% for rural roads

Customers are satisfied with the quality of Auckland's roads

Percentage of residents satisfied with the quality of roads in the Auckland region

46%

No less than 75%

70%(5)

 

Customers are satisfied with the quality of Auckland's footpaths

 

 

 

 

 

Percentage of residents satisfied with the quality of footpaths in the Auckland region

41%

No less than 75%

65%(5)

 

Notes:

  1. Road Corridor Productivity is measured by # of vehicles X their average speed X average vehicle occupancy by lane. Based on considerable research, Austroads (association of Australian and New Zealand road transport and traffic authorities) has issued recommendations for measuring this, based on ideal arterial road conditions. Taking these recommendations into account, an AT corridor productivity ideal has been set at: 38,000 person km, per hour, per lane (900 vehicles travelling at an average speed of 35kph in one lane, with an average of 1.2 occupants).
  2. Key arterial routes include:
    1. Airport to CBD (via Manukau Road)
    2. St Lukes to St Johns (via Balmoral/Greenlane West/Greenlane East/Remuera Road)
    3. Albany to Birkenhead (via Glenfield Road)
    4. Henderson to CBD (via Great North Road)
    5. SH1 to Ti Rakau Drive (via Te Irirangi Drive) (new nominated route)
    6. SH20 to Portage Road (via Tiverton/Wolverton Road)
  3. Target travel times on nominated strategic freight routes:
    1. SEART (from Sylvia Park to East Tāmaki) - 11 mins
    2. SEART (from East Tāmaki to Sylvia Park) - 12 mins
    3. Wairau Road (from SH1 to SH18) - 8 mins
    4. Wairau Road (from SH18 to SH1) - 8 mins
    5. Harris Road (from East Tāmaki to SH1 Highbrook interchange) - 10 mins
    6. Harris Road (from SH1 Highbrook interchange to East Tāmaki) - 11 mins
    7. Kaka Street/James Feltcher Drive/Favona Road/Walmsley Road (SH20 to Walmsley) - 13 mins (new nominated route)
    8. Kaka Street/James Feltcher Drive/Favona Road/Walmsley Road (Walmsley to SH20) - 13 mins (new nominated route)
    9. Great South Road (SH1 Ellerslie Panmure Hwy Interchange to Portage Road) - 11 mins (new nominated route)
    10. Great South Road (Portage Road to SH1 Ellerslie Panmure Hwy Interchange) - 11 mins (new nominated route)
  4. The figures for fatal and serious injuries on the local road network for each year are reported on a calendar year basis. The result for the year to 31 December 2013 is not yet available.
  5. Targets changed due to change in methodology.

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Footpaths

14,478

145

14,333

51,774

Roads

399,034

49,619

349,415

398,277

Total

413,512

49,764

363,748

450,051

Group of activities: Parking and enforcement

The activities in this group contribute to the management of on-street parking and council owned off-street parking.

The following activities are delivered:

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Off-street car-parking meets customer demand

Off-street parking occupancy rates (4-hour peak period)(1)

78.1% (average for July to December 2012)

 

57%

(all day)

New measure

Within 80-90% range

 

On-street parking facilities meet customer demand

On street parking occupancy rates (4-hour peak period) (1)

75.8% (average for August and November 2012)

 

60%

(all day)

New measure

Within 70-90% range

 

Note:

  1. 4-hour peak period is defined as the top 4 busiest hours of the day. These hours are not often coincidental and can vary depending on contributing factors.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Off-street parking business

21,122

27,046

(5,924)

3,410

On-street parking and enforcement

29,614

54,375

(24,761)

3,644

Total

50,736

81,421

(30,685)

7,054

> Back to Contents of this volume

Community

Council works in partnership with agencies and the community to contribute to safe, healthy and inclusive communities by providing essential facilities and services such as libraries, community facilities, cemeteries and emergency management. This assists people to get involved in recreation, leisure, arts and cultural activities, volunteering, heritage and community groups.

Contribution to the Auckland Plan

The seven community outcomes below are the key goals of the Auckland Plan. The groups of activities within the community theme are listed below to show how they contribute to delivering these outcomes.

Community outcome

Healthy icon.

Prosperous icon.

Green icon.

Connected icon.

Loved icon.

Creative icon.

Maori identity icon.

Group of activities

Cemeteries and crematoria

Yes

 

Yes

 

Yes

Yes

Yes

Emergency management

Yes

 

 

Yes

 

 

Yes

Regional library services

Yes

Yes

 

Yes

Yes

Yes

Yes

Local library services

Yes

Yes

 

Yes

Yes

Yes

Yes

Regional community services

Yes

Yes

 

Yes

Yes

Yes

Yes

Local community services

Yes

Yes

 

Yes

Yes

Yes

Yes

Community activities help to create a strong, inclusive and equitable society that ensures opportunity for all Aucklanders. We contribute to quality of life by:

Key priorities contributing to Māori outcomes

Key priorities planned for 2014/2015 that contribute to achieving Māori outcomes include:

Group of activities: Cemeteries and crematoria

The activity of cemeteries and crematoria provides essential social and community services to maintain public health and allow commemoration, cremation and burial of loved ones.

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan
target 2013/2014

Annual Plan target 2014/2015

Maintain cemeteries, memorial gardens and records for families, friends and visitors to remember their loved ones

Percentage of customers satisfied with the cemeteries and memorial gardens overall

79%

85%

90%

 

Percentage of visitor service standards achieved

92%

85%

85%

 

Capacity of cemeteries and crematoria to meet current and projected demand (years)

Not measured

5

5

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Cemeteries and crematoria management

6,755

7,553

(798)

3,255

Total

6,755

7,553

(798)

3,255

Group of activities: Emergency management

The activities in this group contribute to delivering emergency management of unanticipated natural and man-made events through our emergency management service. We have responsibility for civil defence emergency management and rural fire readiness and response, ensuring the safety of our residents, the preservation of property and the natural environment.

The following activities are delivered:

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Ensure readiness to respond effectively to emergency civil defence situations and hazards

Overall score achieved using the CDEM capability assessment tool

70%

80%

80%

Provide education, support, and training to develop a resilient community

Percentage of community fully prepared for an emergency

12%

15%

18%

 

Percentage of community prepared at home for an emergency

21%

24%

27%

 

Number of local community emergency management projects completed

57

14

14

Provide emergency management and rural fire capability to manage fire and emergencies quickly and effectively

Percentage of incidents requesting attendance by New Zealand Fire Service responded to within 10 minutes

87%

85%

85%

 

Percentage of rural fire fighters who meet national training standards

85%

92%

90%

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Emergency management and preparedness

5,643

159

5,484

274

Rural fire services

2,116

28

2,088

817

Total

7,759

187

7,572

1,091

Group of activities: Regional library services

The activities in this group provide for a range of needs in our community ranging from access to books and other material, delivery of digital services and library systems, access to research and leisure resources, and literacy and learning programmes.

The following activities are delivered:

Our local library activities are contained in the following section.

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Provide access to a wide range of information relevant to community learning needs

Percentage of customers satisfied with content and condition of collections

87%

85%

85%

 

The number of lending and reference collection items available per capita

2.3

2.7

2.8

 

Percentage of customers satisfied with the services available on library computers, including databases and catalogues

74%

75%

80%

 

Number of collection items borrowed/ issued per capita

10.9

12

12

 

Number of new collection items purchased annually per capita

0.33

0.30

0.30

 

Number of people in reading and information skill programmes per capita

0.30

0.29

0.30

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Library collection management

30,139

2,302

27,837

18,572

Regional and corporate library management

19,102

280

18,822

664

Total

49,241

2,582

46,659

19,236


Group of activities: Local library services

The activity of local library facilities and services contributes to the management and operation of local libraries, including the delivery of learning programmes, events and expert assistance within local libraries, and the delivery of approved new libraries and major upgrades.

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

For projects and priorities in your local area, please see the relevant local board agreement in Volume 2 of this document.

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Provide safe, welcoming, and accessible library facilities for customers to access library services

Percentage of customers satisfied with overall services provided by libraries

90%

90%

90%

 

Average number of library visits per capita

8.8

10

10

 

Total library building floor space per 1,000 residents (m2)

 41.5

35.2

 40.3

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Local library facilities and services

59,826

780

59,046

26,598

Total

59,826

780

59,046

26,598

Group of activities: Regional community services

The activities in this group contribute to community development and safety, influencing people's sense of security and quality of life by providing safe public places, events and accessible facilities to enable Aucklanders to gather, learn, share and connect.

Our 1500 housing units enable eligible older persons to live independently within their communities in quality accommodation.

The following activities are delivered:

Our local community services activities are contained in the following section.

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Provide equitable and sustainable community development policies, resources and programmes that support community wellbeing

Percentage of customers satisfied with community development programmes

43%

75%

60%

 

Percentage of Māori customers satisfied with community development programmes

50%

Maintain or improve

60%

 

Number of community development programmes provided

25

26

26

 

Percentage of residents satisfied with Citizens Advice Bureau services

86%

76%

80%

 

Number of community development programmes that specifically relate to Māori

1

Maintain or improve

1

Improve community safety through delivery of programmes and initiatives with partner organisations and the community

Number of volunteers actively involved in community patrolling

989

500

500

 

Percentage of all assets that are graffiti free across the city

90%

85%

85%

 

Percentage of graffiti removal requests completed within 24 hours of reporting

99.7%

90%

90%

Provide accessible and affordable housing to eligible people within the community

Percentage of tenants satisfied with provision and management of housing facilities for the elderly

76%

85%

80%

 

Percentage occupancy rate of housing facilities for the elderly

94.3%

90%

95%

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Community development policy

8,948

0

8,948

0

Regional community development initiatives

13,760

535

13,225

0

Regional community safety initiatives

11,756

1,433

10,323

0

Regional social housing

4,813

6,737

(1,924)

1,370

Total

39,277

8,705

30,572

1,370

Group of activities: Local community services

The activities in this group help to strengthen communities and contribute to residents' well-being by providing local programmes and facilities, enabling people to connect, learn, interact and participate in their community.

The following activities are delivered:

Local community safety initiatives - providing community safety programmes. Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

For local community services projects and priorities in your area, please see the relevant local board agreement in Volume 2 of this document.

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Provide local community development resources, funds and programmes that build community wellbeing

Percentage of community funding applicants satisfied with information, assistance and advice provided

58%

75%

75%

 

Percentage of community funding/grant recipients meeting grant obligations

80%

95%

90%

Provide community halls, centres and houses that meet the recreational and social needs of the local community

Percentage of users satisfied with community centres and community houses

89%

75%

80%

 

Percentage of available time community centres and halls are used (actual hours used compared to hours available)

43%

50%

45%

Improve community safety through delivery of programmes and initiatives with partner organisations and the community

Percentage of respondents who perceive that their neighbourhood is reasonably safe in the day time

85%

85%

85%

 

Percentage of respondents who perceive that their neighbourhood is reasonably safe at night time

42%

55%

55%

Note to previous table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Local community development initiatives

10,069

197

9,872

0

Local community facilities

20,484

7,420

13,064

11,547

Local community safety initiatives

1,222

0

1,222

400

Total

31,775

7,617

24,158

11,947

> Back to Contents of this volume

Lifestyle and culture

Through its lifestyle and culture activities the council provides a wide variety of services and facilities that give Aucklanders and visitors the opportunity to enjoy high quality arts, culture and recreation. This ranges from the provision of arts programmes, events and parks across the region to art galleries, museums and local community facilities, in venues large and small.

We also invest in facilities to attract world class events here, and partner with organisations on arts and recreation opportunities for cultural expression and enjoyment.

How the activities in this theme contribute to the Auckland Plan

The seven community outcomes are the key goals of the Auckland Plan. The groups of activities within this theme are listed below showing how they contribute to delivering these outcomes.

Community outcome

Healthy icon.

Prosperous icon.

Green icon.

Connected icon.

Loved icon.

Creative icon.

Maori identity icon.

Group of activities

Regional arts, culture and events services

Yes

Yes

 

 

Yes

Yes

Yes

Local arts, culture and events services

 

Yes

 

Yes

Yes

 

Yes

Regional events facilities

Yes

Yes

 

 

Yes

Yes

Yes

Regional parks services

Yes

 

Yes

 

Yes

Yes

Yes

Local parks services

Yes

 

Yes

Yes

Yes

Yes

Yes

Regional recreation services

Yes

Yes

 

Yes

Yes

Yes

Yes

Local recreation services

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Regional collections and amenities

 

 

Yes

 

Yes

Yes

Yes

Lifestyle and culture activities contribute to the outcomes of the Auckland Plan by:

Key priorities that contribute to Māori outcomes

Key priorities planned for 2014/2015 that contribute to achieving Māori outcomes include:

Group of activities: Regional arts, culture and events services

The activities in this group promote arts, culture and events, through a range of regional services and programmes that include public art, regional festivals and events. These include initiatives for the preservation and expression of Māori, Pasifika and ethnic cultures.

The following activities are delivered:

Our local arts, culture and events services activities are contained in the following section.

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan
target 2013/2014

Annual Plan target 2014/2015

Deliver, facilitate and fund diverse and high quality arts and cultural programmes and activities

Percentage of participants satisfied with regional arts activities

87%

80%

85%

 

Number of regional arts and cultural activities delivered or funded by council(1)

1,822

5,000

1,000

 

Number of participants in arts and cultural activities provided by council per 1,000 residents

143

51

100

 

Number of public art partnerships

19

10

12

Deliver and facilitate regional events targeted to attract regional, national and international attendees

Percentage of attendees satisfied with council delivered regional events overall

90%

85%

85%

 

Number of attendees at council delivered regional events per 1,000 residents(2)

36

73

36

 

Number of events permitted in Auckland

2100

776

2100

 

Percentage of Māori participating in council delivered regional events

8%

Maintain or improve

11%

Notes:

  1. Previous target of 5000 included activities delivered, locally and regionally, and current year target is based on regional only.
  2. This measure was previously reported as the total number of attendees. The 2012/2013 results was 55,120 and the target was 110,000.

Further explanation for the above measures and targets, where applicable, is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Arts, culture and events policy

350

0

350

0

Regional arts and culture initiatives

14,198

1,025

13,173

2,859

Regional events

3,206

83

3,123

84

Total

17,754

1,108

16,646

2,943

Group of activities: Local arts, culture and events services

The activities in this group facilitate and deliver a wide range of local arts and cultural activities, and community events, working with local communities and customising them to support diversity, reflect local needs and foster local talents and skills.

The following activities are delivered:

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

For projects and priorities in your local area, please see the relevant local board agreement in Volume 2 of this document.

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan
target 2013/2014

Annual Plan target 2014/2015

Provide opportunities and facilities for the community to experience and enjoy the arts

Percentage of visitors satisfied with council delivered or funded arts facilities

89%

85%

85%

 

Number of visits to local arts facilities per 1,000 residents

939

420

811

 

Number of participants in local arts activities per 1,000 residents

131

104

104

 

Percentage of participants satisfied with local arts activities

87%

80%

85%

Deliver, facilitate and fund diverse and high quality arts and cultural programmes

Number of local arts and culture activities that contribute to Māori outcomes (1)

370

Maintain or improve

107

Deliver and facilitate events that meet local community needs

Percentage of attendees satisfied with council provided local events overall

81%

80%

85%

 

Estimated number of attendees at council delivered and funded local events per 1,000 residents

347

440

347

Note:

  1. This measure has changed since 2012/2013 to refer to activities delivered at a local level.

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Local arts and culture facilities

9,389

1,253

8,136

12,605

Local arts and culture initiatives

5,439

0

5,439

482

Local events

7,163

0

7,163

0

Total

21,991

1,253

20,738

13,087

Group of activities: Regional events facilities

The activities in this group are delivered through our CCO, Regional Facilities Auckland, and contribute to providing high-quality performing arts, cultural, heritage, leisure, entertainment, sporting and conference facilities that reinforce Auckland's national and international reputation as an exciting events destination. These activities add vibrancy by giving Aucklanders and visitors the opportunity to attend events at world class venues.

The following activities are delivered:

Key priorities for 2014/2015

Over the next year, council has identified the following key priorities:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Provide fit for purpose regional event facilities

Total number of attendances at regional event facilities (North Shore Events Centre, Vodafone Events Centre, The Trusts Stadium)

1,972,035

1,500,000

1,500,000

 

Total number of event days (or days open) held at regional event facilities (North Shore Events Centre, Vodafone Events Centre, The Trusts Stadium)

1,575

1,390

1,000

Provide fit for purpose regional event facilities

Total number of attendances at regional event facilities at RFA facilities (includes The Civic, Auckland Town Hall, Aotea Square, Aotea Centre, ANZ Viaduct Events Centre, Mt Smart, Western Springs, QBE Stadium (previously known as North Harbour Stadium), Bruce Mason Centre)

1,369,236

1,075,000

1,225,000

 

 

Total number of event days held at RFA Facilities (includes The Civic, Auckland Town Hall, Aotea Square, Aotea Centre, ANZ Viaduct Events Centre, Mt Smart, Western Springs, QBE Stadium (previously known as North Harbour Stadium), Bruce Mason Centre)

2,650

1,500

 

2,455

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Regional event facility and stadium support

14,251

859

13,392

15,667

Stadium management

8,152

3,698

4,454

3,356

Auckland Live & Conventions

42,048

27,526

14,522

0

ANZ Viaduct Events Centre management

20

0

20

152

Total

64,471

32,083

32,388

19,175

Group of activities: Regional parks services

The activities in this group contribute towards high quality regional parks, botanic gardens and maunga / volcanic cones. These activities safeguard our natural environment while meeting our recreation and lifestyle needs and those of our visitors.

The following activities are delivered:

As part of the Ngā Mana Whenua o Tāmaki Makaurau (Tāmaki Collective) settlement, 14 maunga (volcanic cones) will be governed by the Tūpuna Maunga o Tāmaki Makaurau Authority (Maunga Authority).

The Maunga Authority will be made up of representatives from both the Tāmaki Collective and Auckland Council and is expected to take effect in late 2014.

Maunga Authority draft Interim Operational Plan

An Interim Operational Plan for 2014/2015 has been developed in anticipation of the establishment of the Maunga Authority and included in the final Annual Plan 2014/2015. This plan will set out the framework in which council will carry out its functions in regards to the routine management of the maunga and administered lands.

The interim Operational Plan will outline funding requirements, capital and operational projects, maintenance works, service level commitments cultural and educational activities and programmes planned for the year.

Key priorities for 2014/2015

Over the next year, council has identified the following key priorities:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Develop a consistent and robust approach to planning, managing and developing Auckland's open space network

Percentage of residents satisfied with the provision (location and distribution) of regional parks

83%

75%

75%

Number of hectares of regional park per 1,000 residents

26.5

30

30

Number of arrangements with Māori that provide for kaitiaki management of ancestral lands (1)

1

Maintain or improve

2

Protect and conserve the values and features of Auckland's volcanic heritage

Percentage of public satisfied with the quality of care of the volcanic features

64%

70%

75%

 

Percentage of mana whenua satisfied with the quality of care of the volcanic features

8%

Maintain or improve

75%

 

Percentage of volcanic landscape maintenance standards achieved based on contract requirements

97%

Greater than 98%

Greater than 98%

Manage the Auckland Botanic Gardens as a place for recreation and to sustain the botanical heritage of Auckland

Percentage of visitors satisfied with the overall quality of their visit to the Botanic Gardens

95%

95%

95%

Number of participants in Botanic Gardens education programmes

8,188

Greater than 7,842

8,000

Number of New Zealand native plants grown for revegetation programmes in the Botanic Gardens

53,793

60,000

60,000

Percentage of visitor service standards achieved

92%

95%

95%

Maintain the natural and cultural settings and representative range of regional parks for the use and enjoyment of the community

Percentage of park visitors satisfied with the overall quality of their visit

98%

90%

90%

Percentage of public who have used a regional park in the last 12 months

79%

Maintain or improve

80%

Number of volunteer hours worked in regional parks each year

88,347

88,000

92,000

Note:

  1. For the purpose of this measure Māori are defined as mana whenua organisations and Kaitiaki is the exercise of guardianship. Arrangements are defined as all organisational arrangements from co-management arrangements through to service contracts.

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Botanic gardens

4,653

69

4,584

0

Farms

1,044

1,103

(59)

0

Parks policy and acquisition

12,496

0

12,496

51,988

Regional parks

26,013

2,055

23,958

15,191

Volcanic cones

2,131

2

2,129

447

Total

46,337

3,229

43,108

67,626

 

Group of activities: Local parks services

This activity includes provision and maintenance of local parks, reserves, sports parks and beaches including sports fields, walkways and cycle ways, toilets, changing rooms, beaches, watercourses and wetlands. Additionally, we manage programmes including volunteers, environmental education, conservation, and guided walks.

Key priorities for 2014/2015

Over the next year, council has identified the following key priorities:

For projects and priorities in your local area, please see the relevant local board agreement in Volume 2 of this document.

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Develop and maintain local park network to cater for community needs

Percentage of residents satisfied with the provision (location and distribution) of local parks and reserves

72%

75%

75%

 

Percentage of residents satisfied with the quality of parks, reserves, sports fields and beaches

71%

85%

75%

 

Percentage of residents who visited a local park or reserve in last 12 months

92%

80%

85%

 

The playing capacity of sports fields (playing hours per week)(1)

10,149

10,200

9,904

 

Percentage of local parks and reserves maintenance standards achieved as per contractual requirements

94.9%

98%

98%

Note:

[1]. Calculation error, the hours should be 9,209 and 9,619 respectively for actual 2012/2013 and Annual Plan 2013/2014.

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Local parks

188,666

827

187,839

96,797

Total

188,666

827

187,839

96,797

 

Group of activities: Regional recreation services

The activities in this group provide funding and develop partnerships to ensure there is a network of facilities and programmes to encourage people to participate in informal recreation through to promoting sporting excellence. We support recreational and sporting programmes and events, facility development, jobs and the sports innovation, science and health industries.

The following activities are delivered:

Our local recreation services activities are contained in the following section.

Key priorities for 2014/2015

Over the next year, council has identified the following key priority:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan
target 2013/2014

Annual Plan target 2014/2015

Provide the community and other agencies with advice and resources to assist in the development of sport and recreation initiatives and events

Percentage of residents participating at least once per week in sport and recreation (1)

70%

Maintain or improve

80%

Note:

  1. Data collection for this measure is from the Annual Residents Survey and only includes participants over 16 years of age.

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Recreation policy

442

0

442

0

Regional recreation facilities

14,672

1,931

12,741

0

Regional recreation initiatives

8,744

0

8,744

0

Total

23,858

1,931

21,927

0

Group of activities: Local recreation services

This activity promotes local public participation in recreational and sporting events and programmes and the use of local recreation facilities, enhancing opportunities for sport and recreation to promote health and well-being.

Key priorities for 2014/2015

Over the next year, council has identified the following key priorities:

For projects and priorities in your local area, please see the relevant local board agreement in Volume 2 of this document.

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan
target 2013/2014

Annual Plan target 2014/2015

Provide safe and accessible facilities and programmes that support recreation and leisure activities at a local level

Percentage of customers satisfied with swimming pool facilities and programmes overall

84%

85%

85%

 

Percentage of customers satisfied with recreation centre facilities and programmes overall (excluding swimming pools)

85%

85%

85%

 

Average number of visits to swimming pools per capita

6.97

3.15

7

 

Average number of visits to recreation facilities per capita (excluding swimming pools)

2.9

1.52

3

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Local recreation initiatives and facilities

62,304

27,440

34,864

43,548

Total

62,304

27,440

34,864

43,548

 

Group of activities: Regional collections and amenities

The activities in this group manage our city's leading cultural and collection institutions, which make a vital contribution to advancing Auckland's social, cultural and economic well-being.

The following activities are delivered:

Key priorities for 2014/2015

Over the next year, council has identified the following key priorities:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan target 2013/2014

Annual Plan target 2014/2015

Provide an opportunity to learn and experience heritage and culture through museums

Percentage of visitors satisfied with their overall visit to museums

95%

90%

90%

 

Number of visitors to museums

1,308,700

1,400,000

1,340,000

Provide the opportunity to access, learn and experience visual arts

Percentage of visitors satisfied with their visit overall to the Auckland Art Gallery Toi o Tāmaki

92%

88%

88%

 

Number of visitors to the Auckland Art Gallery Toi o Tāmaki

440,942

455,000

460,000

 

Number of participants in education and public programmes at Auckland Art Gallery Toi o Tāmaki

24,823

40,000

40,000

Provide memorable, inspirational, leisure and learning experiences with wildlife

Percentage of visitors satisfied with their overall visit to Auckland Zoo

95%

88%

88%

 

Number of visitors to Auckland Zoo

716,327

680,000

680,000

Support wildlife conservation in the Auckland region and in the wild

Number of species at Auckland Zoo in conservation programmes

49

49

50

Deliver educational and interpretive programmes to increase understanding and encourage wildlife conservation

Percentage of participants satisfied their learning outcomes were achieved at the Auckland Zoo

95%

90%

90%

 

Number of participants in education programmes at the Auckland Zoo

53,686

50,000

50,000

Note to table:

Further explanation, where applicable, for the above measures and targets is included in the Long-term Plan 2012-2022.

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Auckland Zoo

23,643

11,559

12,084

3,034

Regional amenities and museums

64,136

0

64,136

0

The Auckland Art Gallery

19,598

4,000

15,598

1,857

Total

107,377

15,559

91,818

4,891

> Back to Contents of this volume

Corporate support

Through its corporate support activities, the staff located in 17 local service centres across the city carry out the duties and functions required to provide the services at the level expected. It is critical that we have an efficient and effective corporate support service as this helps deliver best quality services to the community.

Contribution to the Auckland Plan

The seven community outcomes are the key goals of the Auckland Plan. The groups of activities within this theme are listed below showing how they contribute to delivering these outcomes.

Community outcome

Healthy icon.

Prosperous icon.

Green icon.

Connected icon.

Loved icon.

Creative icon.

Maori identity icon.

Group of activities

Organisational support

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Corporate support activities provide the policy and monitoring frameworks that ensure the organisation follows the strategic direction set by the governing body, local boards and the Auckland Plan.

They also ensure the council is accessible and responsive to ratepayers, residents and stakeholders and provide a variety of options for contact and interaction, including providing Aucklanders with appropriate information and opportunities for consultation and engagement on our plans and policies.

Key projects that contribute to Māori outcomes

Key projects planned for 2014/2015 that contribute to achieving Māori outcomes include:

Group of activities: Organisational support

The services provided in this group assist with the operational functioning of our day to day activities and operations including administrative and back office support for both the governing body and local boards.

The following services are delivered:

Key priorities for 2014/2015

Over the next year, council has identified the following key projects:

How we measure performance

Level of service statement

Performance measure

Actual 2012/2013

Annual Plan
target 2013/2014

Annual Plan target 2014/2015

Provide communication related support and improve brand awareness of Auckland Council

Percentage of residents who associate Auckland Council with the Auckland Council logo (prompted)

78%

64%

79%

 

Percentage of residents who associate Auckland Council with the Auckland Council logo (unprompted)

40%

28%

45%

Develop and maintain relationships with iwi and Māori communities and ensure their effective contribution to the decision-making processes of the council

Percentage of Māori organisations who consider they have an appropriate working relationship with council

23%

75%

75%

Provide efficient, effective and convenient ways for customers and stakeholders to contact and conduct business with the Council

Percentage of calls that are answered within 20 seconds

74%

80%

80%

Percentage of emails actioned and responded to within 72 hours

70%

80%

80%

Ensure sound financial governance and maintain an effective financial transaction management centre for account payables and receivables

Percentage net debt to total revenue

147.5%

187.2%

199.4%

Percentage net interest to total revenue

9.2%

10.5%

11.5%

Percentage of receipts processed within 24 hours from receipt

100%

97%

98%

Maximum number of days to process receipt

1

2

1

Provide human resources and health and safety advice and initiatives to support Auckland Council and CCOs

Percentage employee engagement

66%

70%

75%

Annual employee turnover

11%

10%

10%

Lost time injury frequency rate

4.88

5.00

4.50

Provide organisational leadership and political support required for council to function efficiently and effectively

Percentage of LTP performance measure targets met or exceeded

73%

90%

90%

Develop and maintain council facilities and manage its core property portfolio and tenants

Percentage of projects delivered according to plan (time and cost)

67%

70%

70%

Create and maintain an efficient transaction management centre to manage the council rates and valuation function

Percentage of rates revenue collected

97.7%

97%

97%

 

Percentage of rates notices lodged within legislative timetable for the first instalment due date

99.4%

99%

99%

Financial information

$000

Operating expenditure
(including depreciation)

Capital expenditure

Financial year ending 30 June 2015

Expenditure

Income

Net expenditure

Total

Organisational support

106,277

30,231

76,046

103,279

Capital Project carry forwards

0

0

0

(206,570)

Total

106,277

30,231

76,046

(103,291)

> Back to Contents of this volume

Part III: Financial information

Financial overview

Our financial strategy

The Long-term Plan 2012-2022 (LTP) set the first budget for delivery of the aspirations of the Auckland Plan. It also set the council's first financial strategy that enables the significant investment required to deliver on the Auckland Plan, while maintaining affordability for current and future ratepayers.

In 2014/2015 we plan to maintain this momentum by investing $1.15 billion in new and improved assets. Combined with $525 million to restore and replace existing assets, our total proposed capital expenditure programme for 2014/2015 is about $1.7 billion.

Our financial strategy sets limits on the council's borrowing to maintain debt at a sustainable level and provide flexibility to deal with unforeseen events. While net debt2 for the group is projected to increase from $6.3 billion to $7.2 billion in 2014/2015, it will still be well within prudential limits. Council considers that borrowing to fund the investment in new assets is the fairest and most appropriate approach, as these assets will provide benefits over a long period of time.

To provide a degree of certainty to ratepayers, our financial strategy also sets a limit on the average general rate increases of 4.9 per cent for the financial years 2013/2014 to 2021/2022. The 2.5 per cent average rates increase for 2014/2015 is well below that limit. Together with other revenue sources such as user charges, grants and subsidies, general rates will help fund the $525 million of asset renewals and the $3.3 billion operational cost of delivering council services in 2014/2015.

The following tables show how the key financial parameters for the annual plan compares to the LTP and the limits set in the financial strategy.

Notes:

2. Net debt represents total borrowing for the council group, less cash and cash equivalents

Key financial parameters for 2014/2015

Parameters ($ million)

Annual Plan

Long-term Plan

Total capital expenditure

1,675

1,678

Total assets

40,617

41,708

Net borrowing

7,204

7,472

Total equity

30,702

31,705

 

 

 

Total operating expenditure

3,287

3,398

Rates revenue

1,451

1,527

Capital expenditure and debt levels

Capital expenditure

Capital expenditure (capex) is for purchasing, building, replacing or developing the city's assets (for example roads, libraries, parks and sportsfields).

The following table provides an overview of capital expenditure by activity theme for 2014/2015. The majority of capital expenditure is forecast to be spent on transport, followed by water supply and wastewater, and lifestyle and culture themes.

2014/2015 gross capital expenditure for group by theme

Theme

$000

Percentage of total capex

Transport

825,736

49%

Water supply and wastewater

323,401

19%

Lifestyle and culture

248,067

15%

Corporate support

103,280

6%

Stormwater and flood protection

96,352

6%

Economic development

83,209

5%

Community

63,497

4%

Built and natural environment

27,545

2%

Commercial and investment

95,494

6%

Solid waste

8,485

1%

Planning

4,178

0%

Governance

2,526

0%

Carried forward capital expenditure (1)

(206,570)

(12%)

Total capital expenditure

1,675,200

100%

 

Note:

1. This represents the proportion of capital expenditure planned for 2014/2015 that is anticipated to remain unspent by the end of the financial year and carried forward into future years.

The capital programme is driven by:

Capital funding

The following table shows how we plan to fund our capital expenditure and other capital outflows in 2014/2015.

Capital expenditure

 

2014/2015

$ million

Growth

444

Service level improvement

706

Renewals

525

Weathertightness claims

74

Other

7

Total

1,756

Funding sources

 

2014/2015

$ million

Subsidies

202

Development contributions

120

Asset sales

59

Operating surplus

431

Borrowings

944

Total

1,756

The $525 million cost of restoring and replacing existing assets is primarily paid for by the depreciation charge included in your rates, along with New Zealand Transport Agency subsidies for transport renewals.

The $1.15 billion investment in new assets is primarily paid for by borrowing to spread this cost over time. We consider this the fairest and most appropriate approach because these assets will provide benefits over a long period of time. As the above table shows, grants and subsidies, development contributions and the sale of surplus assets are also important sources of capital funding.

Prudent financial management

To ensure that we are using debt wisely, we monitor our borrowing levels relative to our income and the value of our assets. By June 2015 the value of council assets will grow to $40.6 billion and debt will increase to $7.2 billion.

Asset movement

 

2014/2015

$ billion

Opening assets

38.9

Investment in new assets

1.2

Revaluation and other movements

0.5

Closing assets

40.6

 

Debt movement

 

2014/2015

$ billion

Opening net debt

6.3

New borrowing requirement

0.9

 

 

Closing net debt

7.2

At $7.2 billion, our net debt at the end of the 2014/2015 year will remain at a prudent level relative to our income. This is reflected in council's very high credit rating (an independent evaluation of our ability to repay debt and the likelihood of us defaulting on our obligations).

Entity

S&P credit rating

New Zealand Government

AA+

Auckland Council

AA

Bank of New Zealand (BNZ)

AA-

Fonterra

A+

Telecom

A-

The council is required to prepare audited 10-year financial plans that demonstrate that our debt levels can be accommodated over the medium to long term without the need for unsustainable increases in rates and user charges.

To ensure that debt levels continue to remain prudent and sustainable, the council has set the following prudential debt limits in our long-term plan:

Measure

Annual Plan 2014/2015

Long-term Plan

2012-2022

Limit

Net debt as percentage of total revenue

195.1%

199.4%

< 275%

Net interest as percentage of total revenue

10.9%

11.5%

< 15%

Net interest as percentage of rates revenue

18.6%

19.5%

< 25%

These limits are indicators of the ability of council to cover its borrowing costs from its different revenue sources. We ensure that debt levels will remain within those limits over a 10-year horizon.

For 2014/2015 we forecast that net interest expense will be $405 million or approximately $1 million per day. During this year the council is planning on spending $1.15 billion, or about $3 million per day, on new or improved assets. We will borrow about $945 million to pay for a proportion of these new assets and will receive total operating revenue of over $3 billion, or more than $8 million a day.

The council uses a combination of operating income sources to pay for interest including, rates, fees and charges such as water and wastewater tariffs, and investment income such as commercial rental revenue and ports revenue. One dollar in every eight dollars of revenue funds interest.

In a similar way to how you might fix your mortgage, we protect the council from rises in interest rates through the use of fixed interest rates and the use of interest rate hedging instruments. To a large extent, this locks in council's future borrowing cost and protects us from rising interest rates.

To ensure that we are not too dependent on the state of global financial markets, we ensure that we always have sufficient cash, liquid investments and committed lines of credit available to allow us to pay our bills for at least the next six months. We also make sure that we borrow from a range of domestic and international lenders so that a problem with any one source of borrowings does not have too large an impact.

Financial sustainability

The council is using borrowing to fund investment in assets to accommodate a growing city and seeks to ensure that the value created from this investment exceeds the whole-of-life cost of the investment. Without the ability to use debt in this way, the council would have to choose between significantly higher rates or a significant reduction in planned assets and services. The council's situation is different to a typical household in that the city is expected to continue grow for a very long time and not transition into a retirement phase.

If Auckland was not growing and needing to lift the standard of the city's infrastructure, existing budgets would be sufficient to support paying down debt. Over the next eight years to 2022, the council's operating budgets will generate surplus cash of close to $6 billion. With approximately 70 per cent of these funds earmarked for renewing and replacing existing assets, about $1.6 billion would be available to repay debt.

However, because the city is growing strongly and community expectations continue to rise, the council is planning to invest $12.3 billion in new and upgraded public infrastructure over this period. This investment will support growth and the demand for better quality public assets and related services. Rather than applying the $1.6 billion to repaying debt, it is more efficient to use this to offset our borrowing requirements in relation to the investment in these assets. In other words, we currently plan to use our surplus cash to invest in the city rather than paying down debt.

 

Operating expenditure and rates funding

Operating expenditure

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

The following table provides an overview of capital expenditure by activity theme for 2014/2015. Transport is the largest area of operating expenditure (31 per cent).

2014/2015 gross operating expenditure for group by theme

Theme

$000

Percentage of total opex

Transport

1,009,942

31%

Lifestyle and culture

529,953

16%

Water supply and wastewater

505,818

15%

Built and natural environment

261,204

8%

Community

192,289

6%

Commercial and investment

178,488

5%

Economic development

159,060

5%

Corporate support

115,900

4%

Solid waste

107,330

3%

Stormwater and flood protection

101,622

3%

Planning

69,596

2%

Governance

55,652

2%

Total operating expenditure

3,286,854

100%

The council's large investment programme means that asset related costs such as interest, maintenance and depreciation are rising faster than the rate of inflation. For example, interest expense rises by $44 million, or 12 per cent from 2013/2014 to 2014/2015.

We are also incurring new costs due to new alcohol control legislation, bylaw consolidation and the need to accelerate the pace of construction of new homes.

The council has identified efficiency savings of $183 million that has allowed it to not only meet the targets set in the Long-term Plan but also to cope with these additional costs with only a 2.5 per cent average rates increase for 2014/2015. These savings generally represent reduced costs relative to the legacy councils, while delivering the same or greater service levels. These have been achieved through improved procurement practices, process automation, system rationalisation, better budgeting, resource optimisation, and enhanced commercial management.

Operational funding

Whilst total operating expenditure is $3,287 million, this includes items such as depreciation, a non-cash expense of $736 million resulting in $2,547 million of operating funding required. Operating funding sources total $2,978 million providing a surplus of $431 million to fund capital expenditure.

Operating expenditure

 

2014/2015

$ million

Staff

719

Interest

394

Other

1,434

   

Total

2,547

 

Funding sources

 

2014/2015

$ million

Rates

1,451

Fees and user charges

1,007

Subsidies and grants

242

Other

278

Total

2,978

We set rates at the level required to balance our budgets after:

1. maximising efficiency savings, and

2. ensuring we recover a fair and appropriate amount of our costs through user charges.

The following table shows how rates revenue is applied to activity theme for 2014/2015:

2014/2015 rates revenue by theme

 

Theme

$000

Transport

449,375

Lifestyle and culture

380,123

Water supply and wastewater (1)

0

Built and natural environment

124,088

Community

153,931

Commercial and investment (2)

(97,199)

Economic development

122,961

Corporate support

34,466

Solid waste

80,569

Stormwater and flood protection

78,199

Planning

68,966

Governance

55,319

Total rates revenue

1,450,798

Notes:

  1. Water supply and sewerage activities are funded through water charges rather than rates.
  2. The commercial and investment activities generate commercial revenue and return on investments that offset the overall rates requirement. The rates revenue for this theme is therefore shown as a negative number.

User charges are the primary means of funding the water and wastewater services provided by Watercare. Water and wastewater charges are maintained at minimum levels consistent with the effective conduct of Watercare's total business and the maintenance of the long-term integrity of its assets. For 2014/2015, water and wastewater prices are projected to increase by 2.4 per cent. This is a reduction from the Long-term Plan 2012-2022, where prices were projected to increase 3.5 per cent for water and 3.75 per cent for wastewater. The total revenue for water and wastewater in 2014/2015 is forecast to be $0.5 billion.

 

Accounting surplus / deficit

Under local government legislation, New Zealand councils are required to follow prevailing accounting standards and practices. These standards require us to prepare financial reports that are structured differently to the way in which we assess our rates requirement. Some key differences are:

The Auckland Council group is projecting a net operating deficit of $39 million in 2014/2015 (refer table below). This improves to a $4 million operating surplus before tax once the council's share of income from Auckland Airport is taken into account.

2014/2015 group operating surplus/ deficit

$000

Total revenue

3,243,658

Total expenses

2,877,338

Net finance costs

404,970

Net operating surplus/ (deficit)

(38,650)

Other gains

42,247

Surplus/ (deficit) before income tax

3,597

Looking ahead

Work has begun on the preparation of the next Long-term Plan. Development of this plan will involve a number of significant decisions to balance delivery of the Auckland Plan with affordability. The council will agree on a draft position for public consultation in late 2014 prior to finalisation in June 2015. The initial base case for this is the 2012-2022 plan, updated for new information received and political decisions made subsequently.

Cost pressures in 2015/2016 of $30 million have been identified above the 4.9 per cent rates increase limit in the Long-term Plan 2012-2022. These include lower than anticipated increases in public transport revenue and higher interest funding requirements associated with electric trains becoming operational earlier than previously anticipated. Council has initiatives underway to mitigate these pressures, including a review of 2014/2015 capital expenditure. The resulting projections for 2015-2022 are shown below.

Chart 1: Revised rates increase projections 2015-2022

Bar graph showing the current rate increase projections and the long-term plan rate increase projections for each year from 2015 to 2022.

Chart 2: Revised net debt projections 2015-2022

Line graph showing the current net debt projections and the long-term plan net debt projections, spanning 2015 to 2022.

Key financial parameters for 2015-2022

Current projections ($ million)

2015

2016

2017

2018

2019

2020

2021

2022

Total operating expenditure

3,287

3,459

3,602

3,743

3,894

4,101

4,325

4,533

Total capital expenditure

1,675

1,685

1,880

2,023

2,261

2,505

2,426

1,831

Rates revenue

1,451

1,536

1,622

1,711

1,817

1,924

2,046

2,171

Net debt

7,204

7,817

8,507

9,252

10,056

11,068

11,991

12,510

Total equity

30,702

31,007

32,813

33,541

34,392

36,150

37,409

37,607

Total assets

40,617

41,486

44,130

45,625

47,499

50,332

52,695

53,359

Financial strategy compliance for 2015-2022

Current projections

Limit

2015

2016

2017

2018

2019

2020

2021

2022

Average rates increase

< 4.9%

2.5%

4.9%

4.9%

4.0%

4.4%

4.6%

4.4%

4.5%

Net debt as percentage of revenue

< 275%

195%

198%

202%

211%

220%

234%

242%

239%

Net interest as a percentage of total revenue

< 15%

11%

11%

12%

12%

13%

13%

14%

14%

Net interest as a percentage of rates income

< 25%

19%

20%

20%

21%

22%

23%

24%

24%

> Back to Contents of this volume

Prospective financial statements and notes

Prospective statement of comprehensive income

Auckland Council group consolidated

$000

Budget 2014

Long-term Plan 2015

Annual Plan 2015

Variance

Notes

Financial year ending 30 June

Revenue

   

 

   

Rates

1,395,290

1,527,240

1,450,798

(76,442)

1

Fees and user charges

968,297

1,045,131

1,006,566

(38,565)

2

Subsidies and grants

417,322

490,926

443,850

(47,076)

3

Development and financial contributions

93,000

157,957

119,957

(38,000)

 

Other revenue

241,034

278,213

222,487

(55,726)

 

Total revenue

3,114,943

3,499,467

3,243,658

(255,809)

 

     

 

   

Expenditure

   

 

   

Employee benefits

678,473

653,130

719,423

66,293

4

Depreciation and amortisation

695,918

744,042

735,997

(8,045)

 

Grants, contributions and sponsorship

108,144

98,730

122,583

23,853

 

Other operating expenses

1,300,668

1,423,952

1,299,335

(124,617)

5

Total expenses

2,783,203

2,919,854

2,877,338

(42,516)

 

 

   

 

   

Finance income

3,643

2,724

4,546

1,822

 

Finance expense

365,596

448,282

409,516

(38,766)

6

Net finance costs

361,953

445,558

404,970

(40,588)

 

     

 

   

Operating surplus/(deficit)

(30,213)

134,055

(38,650)

(172,705)

 

     

 

   

Share of surplus/(deficit) in associates and jointly controlled entities

37,722

37,351

42,247

4,896

 
     

 

   

Surplus/(deficit) before income tax

7,509

171,406

3,597

(167,809)

 

     

 

   

Income tax expense

13,647

18,351

17,751

(600)

 
     

 

   

Surplus/(deficit) after income tax

(6,138)

153,055

(14,154)

(167,209)

 

 

 

 

 

 

 

Surplus/(deficit) after income tax is attributable to:

   

 

   

Ratepayers of Auckland Council

(6,138)

153,055

(14,154)

(167,209)

 

Non-controlling interest

0

0

0

0

 

 

(6,138)

153,055

(14,154)

(167,209)

 

     

 

   

Other comprehensive income

   

 

   

Gain on revaluation of property, plant and equipment

1,232,824

1,338,749

775,347

(563,402)

7

Income tax on revaluation of property, plant and equipment

0

(165,833)

(114,006)

51,827

 

Total other comprehensive income

1,232,824

1,172,916

661,341

(511,575)

 

 

 

 

 

 

 

Total comprehensive income

1,226,686

1,325,971

647,187

(678,784)

 

     

 

   

Total comprehensive income is attributable to:

 

 

 

 

 

Ratepayers of Auckland Council

1,226,686

1,325,971

647,187

(678,784)

 

Non-controlling interest

0

0

0

0

 

 

1,226,686

1,325,971

647,187

(678,784)

 

Notes:

1.

Prospective rates for 2014/2015 are lower than originally forecast in the long-term plan. This is due to a range of specific savings initiatives and lower inflation projections, resulting in a lower rates requirement. For the purposes of this statement, rates include rates penalties income and are shown net of rates charged on property owned by the council group. Refer to the rates revenue by type note in the prospective funding impact statements section for further detail.

2.

The decrease in 2014/2015 fees and user charges revenue compared to the long-term plan forecast is mainly as a result of lower activity revenue in water supply and wastewater activities.

3.

The decrease in subsidies and grants is due to capital grants for projects that were deferred to future years.

4.

The variance in personnel costs from the long-term plan is due mainly to a reallocation of consultant and external contract budgets included within other operating expenditure, to personnel costs, as the council moves to improve utilisation of its internal staff resource.

5.

The decrease in other operating expenditure is due to the combination of a range of specific savings initiatives, lower average rate of inflation than forecast in the long-term plan and the transfer of budgets to personnel (see note 4 above).

6.

The decrease in interest expense for 2014/2015 is due to a lower average interest rate being budgeted on council borrowing compared to that forecast in the long-term plan. This is partly offset by an amendment to the non-cash rediscounting of interest related to the council's weathertightness provision.

7.

The decrease in net gain on revaluation of property, plant and equipment is due to a change in the forecast timing of revaluation of council assets and a decrease in the rate of inflation applied.

Prospective statement of changes in equity

Auckland Council group consolidated

$000

Contributed equity

Accumulated funds

Reserves

Total equity (1)

Long-term plan 2015

Variance

Notes

Balance as at 1 July 2013

26,733,502

(58,910)

2,153,196

28,827,788

29,662,404

(834,616)

2

Surplus/(deficit) after tax

0

(6,138)

0

(6,138)

51,672

(57,810)

3

Other comprehensive income

0

0

1,232,824

1,232,824

664,871

567,953

3

Total comprehensive income/ (loss)

26,733,502

(65,048)

3,386,020

30,054,474

30,378,947

(324,473)

 

Transfer to/(from) reserves

0

(1,296)

1,296

0

0

0

 

Balance as at 30 June 2014

26,733,502

(66,344)

3,387,316

30,054,474

30,378,947

(324,473)

 

Surplus/(deficit) after tax

0

(14,154)

0

(14,154)

153,055

(167,209)

3

Other comprehensive income

0

0

661,341

661,341

1,172,916

(511,575)

3

Total comprehensive income/ (loss)

26,733,502

(80,498)

4,048,657

30,701,661

31,704,918

(1,003,257)

 

Transfer to/(from) reserves

0

(2,266)

2,266

0

0

0

 

Balance as at 30 June 2015

26,733,502

(82,764)

4,050,923

30,701,661

31,704,918

(1,003,257)

 

Notes:

1.

There is no non-controlling interest in the group. Total equity represents ratepayer equity.

2.

The reduction in opening equity reflects a lower closing equity position in the 2012/2013 annual accounts than was anticipated when the long-term plan was prepared. This was due mainly to the reduced impact of asset revaluations, lower service and other income and higher expenses to operate and maintain council assets as detailed in the 2012/2013 annual report.

3.

For variances in surplus/(deficit) after tax and other comprehensive income refer to notes on the Prospective Statement of Comprehensive income.

 

Prospective statement of financial position

Auckland Council group consolidated

$000

 Budget 2014

Long-term Plan 2015

Annual Plan 2015

Variance

Notes

As at 30 June

ASSETS

   

 

   

Current assets

   

 

   

Cash and cash equivalents

239,597

16,860

261,675

244,815

1

Receivables and prepayments

285,932

440,853

295,560

(145,293)

2

Other financial assets

331,391

283,000

331,391

48,391

3

Derivative financial instruments

3,645

1,000

3,645

2,645

 

Inventories

18,131

20,000

18,131

(1,869)

 

Non-current assets held for sale

58,913

39,931

39,931

0

 

Total current assets

937,609

801,644

950,333

148,689

 
     

 

   

Non-current assets

   

 

   

Receivables and prepayments

101,224

31,400

104,633

73,233

2

Other financial assets

95,622

96,600

107,633

11,033

3

Derivative financial instruments

74,702

33,000

74,702

41,702

 

Property, plant and equipment

36,195,417

39,461,403

37,859,095

(1,602,308)

4

Intangible assets

413,028

331,670

423,971

92,301

5

Biological assets

1,722

5,000

1,722

(3,278)

 

Investment property

420,600

268,000

420,600

152,600

6

Investments in associates and joint ventures

669,728

679,382

673,924

(5,458)

7

Total non-current assets

37,972,043

40,906,455

39,666,280

(1,240,175)

 
     

 

   

TOTAL ASSETS

38,909,652

41,708,099

40,616,613

(1,091,486)

 

     

 

   

LIABILITIES

   

 

   

Current liabilities

   

 

   

Employee entitlements

69,508

73,550

73,703

153

 

Payables and accruals

573,636

633,348

604,871

(28,477)

2

Borrowings

1,053,701

1,479,682

1,069,949

(409,733)

8

Derivative financial instruments

12,987

11,000

12,987

1,987

 

Tax payable

10,499

1,000

10,499

9,499

 

Provisions

83,284

67,859

69,717

1,858

 

Total current liabilities

1,803,615

2,266,439

1,841,726

(424,713)

 
     

 

   

Non-current liabilities

   

 

   

Employee entitlements

5,429

7,801

5,757

(2,044)

 

Payables and accruals

26,160

32,984

39,746

6,762

2

Borrowings

5,467,137

6,009,041

6,395,431

386,390

8

Derivative financial instruments

213,698

162,365

213,698

51,333

9

Provisions

367,250

278,235

326,232

47,997

10

Deferred tax liabilities

971,889

1,246,316

1,092,362

(153,954)

11

Total non-current liabilities

7,051,563

7,736,742

8,073,226

336,484

 
     

 

   

TOTAL LIABILITIES

8,855,178

10,003,181

9,914,952

(88,229)

 

     

 

   

NET ASSETS

30,054,474

31,704,918

30,701,661

(1,003,257)

 

     

 

   

$000

 Budget 2014

Long-term Plan 2015

Annual Plan 2015

Variance

Notes

As at 30 June

Equity

   

 

   

Contributed equity

26,733,502

26,354,000

26,733,502

379,502

 

Accumulated funds

(66,344)

129,458

(82,764)

(212,222)

 

Reserves

3,387,316

5,220,460

4,050,923

(1,169,537)

 

Total ratepayers equity

30,054,474

31,703,918

30,701,661

(1,002,257)

 

Non-controlling interest

0

1,000

0

(1,000)

 

TOTAL EQUITY

30,054,474

31,704,918

30,701,661

(1,003,257)

 

Notes:

1.

The increase in cash and cash equivalents is due mainly to a planned increase in cash holdings for liquidity purposes.

2.

Current and term receivables and payables have been updated to reflect balances in the audited 2012/2013 annual accounts.

3.

The variance in other financial assets is due to an increase in the value in the 2012/2013 annual accounts.

4.

The variance in property plant and equipment is due to lower closing balances in the 2012/2013 annual accounts and the 2013/2014 budget than forecast when preparing the long-term plan. This results from deferred capital expenditure and decreased asset revaluation impact.

5.

The variance in intangible assets is due to increased capitalisation of computer software in the 2012/2013 annual accounts.

6.

The variance in investment property value is due a higher closing balance in the 2012/2013 annual accounts than originally forecast, primarily as a result of investment property revaluation in prior years.

7.

The decrease in investment in associates relates to a capital distribution received from Auckland International Airport Limited. This was largely offset by an increase in the fair value of the council's shareholding, as recorded in the 2012/2013 annual accounts.

8.

The borrowings opening balance was higher than forecast in the long-term plan due to a range of factors, including increased cash holdings and lower development contribution revenue, offset by capital expenditure deferrals. The overall decrease in the 2014/2015 year is due to further capital expenditure deferrals.

9.

The variance in derivative financial instruments is due to an increase in the value of interest rate swap liability recorded in the 2012/2013 annual accounts.

10.

The variance in provisions is due to the increased provisions recorded in the 2012/2013 annual accounts.

11.

The variance in deferred tax liability is related to a lower than expected increase in revaluation of Watercare Services Limited property, plant and equipment (see note 4 above).

 

 

Prospective statement of cash flow

Auckland Council group consolidated

$000

 Budget 2014

Long-term Plan 2015

Annual Plan 2015

Variance

Notes

Financial year ending 30 June

Cash flows from operating activities

   

 

   

Receipts from rates revenue

1,430,068

1,541,086

1,491,335

(49,751)

1

Receipts from customers and other services

1,688,886

1,926,700

1,778,718

(147,982)

2

Interest received

3,643

2,724

4,546

1,822

4

Dividends received

119,994

32,696

38,051

5,355

 

Payments to suppliers and employees

(2,150,410)

(2,238,408)

(2,208,855)

29,553

3

Interest paid

(347,130)

(448,017)

(393,715)

54,302

4

Income tax refund/(paid)

(17,615)

(18,351)

(11,284)

7,067

 

Other

0

7,038

7,038

0

 

Net cash from operating activities

727,436

805,468

705,834

(99,634)

 
     

 

   

Cash flows from investing activities

   

 

   

Proceeds from medium term investments

22,516

24,523

0

(24,523)

 

Proceeds from sale of property, plant and equipment

57,684

38,581

58,913

20,332

 

Proceeds from community loan repayments

1,148

2,017

1,749

(268)

 

Purchase of property, plant and equipment

(1,512,778)

(1,663,070)

(1,655,683)

7,387

5

Purchase of intangible assets

(17,833)

(15,424)

(19,518)

(4,094)

 

Purchase of other investments

(5,040)

(1,598)

(3,760)

(2,162)

 

Community loans

(6,000)

(6,000)

(10,000)

(4,000)

 

Net cash from investing activities

(1,460,303)

(1,620,971)

(1,628,299)

(7,328)

 
     

 

   

Cash flows from financing activities

   

 

   

Proceeds from borrowings

1,845,626

2,166,960

2,011,002

(155,958)

6

Repayment of borrowings

(1,209,623)

(1,370,496)

(1,066,459)

304,037

6

Net cash from financing activities

636,003

796,464

944,543

148,079

 

 

 

 

 

 

 

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

(96,864)

(19,039)

22,078

41,117

 

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

336,461

35,899

239,597

203,698

 

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

239,597

16,860

261,675

244,815

7

Notes to previous table:

1.

Receipts from rates revenue are shown net of rates charged on property owned by the council group and working capital movements. The decrease in prospective rates for 2014/2015 is due to a range of specific savings initiatives and lower inflation projections, resulting in a lower rates requirement than previously forecast.

2.

The decrease in receipts from customers and services for 2014/2015 compared to the long-term plan forecast is mainly due to lower activity user charge revenue in water supply and wastewater activities.

3.

The decrease in payments to suppliers and employees is due to a range of specific savings initiatives and a lower average rate of inflation than forecast in the long-term plan.

4.

The increase in interest income is due to a combination of a higher cash holdings. The decrease in interest paid for 2014/2015 is due to a lower average interest rate being budgeted on council borrowing compared to that forecast in the long-term plan.

5.

The decrease in purchase of property plant and equipment reflects the deferral of capital expenditure to future years.

6.

For the purposes of this statement it is assumed that current borrowings in one year are repaid the following year and refinanced. The movements in proceeds from and repayments of borrowing for 2014/2015 are indicative of the lower proportion of short-term (current) borrowing in the 2012/2013 annual accounts. This impact has been carried through to subsequent years.

7.

The variance from the long-term plan in 2013/2014 cash and cash equivalents is due to a planned increase in the level of cash being held for liquidity purposes.


Notes to the financial statements

Note 1: General information

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) Act 2009 (LGAA 2009). 

Financial information within this plan is prepared and disclosed on a full group basis (except where specifically stated otherwise). The Auckland Council Group (the group) consists of the ultimate parent, the council, and its subsidiaries, associates and jointly-controlled entities. All subsidiaries and associates 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.

This annual plan is based on the Auckland Council's Long-term Plan 2012-2022 (LTP), updated for new information arising since the LTP was adopted.

The council is responsible for the prospective financial statements included in the Annual Plan 2014/2015, including the appropriateness of the significant financial assumptions these are based on, and the other disclosures in the document.

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

These prospective financial statements are for the period from 1 July 2014 to 30 June 2015. 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

These prospective financial statements are prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP), the LGA 2002 and the LGAA 2009. The council and the group are public benefit entities (PBEs) for the purpose of complying with NZ GAAP, because their primary objective is to provide services to the Auckland community for social benefit rather than to make a financial return. In particular, these prospective statements have been prepared in accordance with PBE FRS-42: Prospective Financial Statements.

Comparative information

Comparative information in this annual plan includes 2013/2014 budget information and 2014/2015 Long-term Plan information.

The 2013/2014 budget information is based on the published Annual Plan 2013/2014 but has been updated to reflect any new information arising since its adoption including opening balances and capital expenditure deferrals.

The Long-term Plan comparative information has not been updated but has, in some cases, been reclassified to achieve disclosure consistency.

Cost allocation

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

Note 2: Summary of significant accounting policies

2.1 Basis of preparation

The council and the group will apply Public Sector Public Benefit Entity Standards (PS PBE Standards) from 1 July 2014 and will prepare its first annual historical financial statements in accordance with PS PBE Standards for the year ended 30 June 2015. The PS PBE Standards are primarily based on International Public Sector Accounting Standards (IPSAS). The council and the group are considered publicly accountable for the purposes of the accounting standard framework and therefore will apply full PBE Standards in their annual historical financial statements from 1 July 2014.

The accounting policies that form the basis of these prospective financial statements have been amended, where appropriate, to comply with the PS PBE Standards. As a result the accounting policies outlined below include the council's policy for recognising revenue from non-exchange transactions. The new policy will impact on the timing of recognition, but not materially on the amount, of revenue recognised from non-exchange transactions in the periods covered by these prospective financial statements.

All other accounting policies of the council and the group are assumed to be unchanged from their current accounting policies as detailed in the group's historical financial statements for the year ended 30 June 2013 and can be obtained from the Auckland Council website. A summary of the significant accounting policies is set out below.

The prospective 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 thousand ('000), 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 group financial statements include the council and its subsidiaries, together with the results of its associates and jointly-controlled entities, which are both accounted for using the equity method.

Transactions and balances between the council and its subsidiaries are eliminated on consolidation. Non-controlling interests and their movements are shown separately.

In the council's financial statements investment in subsidiaries, associates and jointly-controlled entities are carried at cost less any accumulated impairment.

2.2 Revenue

The group derives its revenue from exchange and non-exchange transactions. Revenue form exchange transactions arises where the council provides goods or services to another party and directly receives approximately equal value (primarily in the form of cash) in exchange. Revenue from non-exchange transaction arises when the group receives value from another party without directly giving approximately equal value directly in exchange for the value received.

Revenue from non-exchange transactions

Revenue from non-exchange transactions is recognised when the recognition criteria for the associated asset have been met, except to the extent a liability is also recognised in respect of the same inflow of resources. If a liability is recognised, as the group satisfies the present obligation recognised as a liability, it reduces the carrying amount of the liability and recognises an amount of revenue equal to that reduction. 

The main source of revenue from non-exchange transactions is general rates. General rates are assessed in full at the start of each financial year and are recognised in full when the assessment process is complete.

Revenue from exchange transactions

Revenue from exchange transactions is recognised when earned. Significant exchange transactions include sale of goods and services and revenue received from ports operations.

Revenue from the supply of services is recognised 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. Revenue from the sale of goods is recognised when the substantial risks and rewards of ownership have been passed to the buyer.

Revenue from port operations is recognised in the period the services are rendered, by reference to the percentage of completion of the specific transaction.

2.3 Grants, contributions and sponsorship expense

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

2.4 Net finance expense

Interest income and expense are recognised in surplus or deficit using the effective interest rate method. Interest expense includes the amortisation of borrowing costs recognised over the borrowing term. Finance expense include unwinding of discounts on provisions and financial assets; and realised gains or losses on the early close out of derivatives.

2.5 Income tax

Income tax comprises current tax and deferred tax calculated using tax rates and tax laws that expected to be 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 income and expense or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income and expense or directly in equity respectively.

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.

2.6 Property, plant and equipment

Initial recognition

Property, plant and equipment is initially recognised at cost or at fair value when an asset is acquired at no cost or for a nominal cost. Capital work in progress is recognised at cost less impairment and is not depreciated.

Subsequent costs

The cost of replacing or improving part of an asset is recognised in the assets' carrying amount. The carrying amount of the replaced part is derecognised. The cost of repairs and maintenance are recognised in surplus or deficit as incurred.

Revaluation

Certain property, plant and equipment are revalued after initial recognition. Revaluations are carried out on a class of asset basis. Net revaluation results are recognised in other comprehensive income and are accumulated to the asset revaluation reserve in equity for that class of asset. Where the revaluation results in a debit balance in the asset revaluation reserve, the debit balance is recognised in surplus or deficit. Any subsequent increase on revaluation is recognised first in the surplus or deficit up to the amount previously expensed and then recognised in other comprehensive income.

Disposals

Realised 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.

Subsequent measurement

Class of property, plant and equipment

Subsequent measurement

Estimated useful life

Infrastructure

Includes 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.

 

Roads

Fair value less accumulated depreciation (straight line basis) and impairment losses since last revaluation.

6-120 years

Water and wastewater

Fair value less accumulated depreciation (straight line basis) and impairment losses since last revaluation.

2-389 years

Machinery

Fair value less accumulated depreciation (straight line basis) and impairment losses since last revaluation.

1-175 years

Stormwater

Fair value less accumulated depreciation (straight line basis) and impairment losses since last revaluation.

10-200 years

Land

Cost includes land under roads, land intended for roads and associated roading infrastructure, less any accumulated impairment losses.

Indefinite

Restricted

Includes properties and improvements where the use and transfer of title outside of the group is legally restricted.

 

Parks and reserves

Fair value less accumulated impairment losses since last revaluation.

Indefinite

Improvements

Cost less accumulated depreciation (straight line basis) and impairment losses.

3-100 years

Buildings

Cost less accumulated depreciation (straight line basis) and impairment losses since last revaluation.

5-90 years

Operational

Includes property plant and equipment used to provide core council services either for administration, as a community service or as a business activity (but not infrastructure or restricted property, plant and equipment).

 

Land

Fair value less accumulated impairment losses since last revaluation.

Indefinite

Buildings

Fair value less accumulated depreciation (straight line basis) and impairment losses since last revaluation.

1-101 years

Marina Structures

Fair value less accumulated depreciation (straight line basis) and impairment losses since last revaluation.

40-100 years

Rolling stock

Fair value less accumulated depreciation (straight line basis) and impairment losses since last revaluation.

2-50 years

Wharves

Fair value less accumulated depreciation (straight line basis) and impairment losses since last revaluation.

2-100 years

Works of art

Fair value less accumulated impairment losses since last revaluation.

Indefinite

Specific cultural and heritage assets

Deemed cost less accumulated impairment losses.

Indefinite

Other operational

Cost includes landfills, motor vehicles, office equipment, library books and furniture and fittings, less accumulated depreciation (straight line basis) and impairment losses.

1-100 years

2.7 Intangible assets

Initial recognition

Intangible assets are initially recognised at cost. The cost of an internally generated intangible asset represents expenses incurred in 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.

Subsequent measurement

Class of intangible asset

Subsequent measurement

Estimated useful life

Computer software

Cost less accumulated amortisation (straight line basis) and impairment.

1-10 years

Rights to acquire

Cost less accumulated impairment losses.
Contracts for rights to acquire range from 4 to 40 years before the asset passes to the group.

 

Intellectual property

Cost less accumulated amortisation (straight line basis) and impairment losses.

4-35 years

Rights to occupy

Cost less accumulated impairment losses.

Indefinite

Goodwill

Cost less accumulated impairment losses.

Indefinite

Other intangible assets

Cost less accumulated amortisation (straight line basis) and impairment losses.

1-60 years

Disposals

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

2.8 Investment property

Investment property is initially recognised at cost. After initial recognition, investment property is carried at fair value. Gains or losses arising from fair value changes are included in surplus or deficit.

2.9 Impairment

Impairment of non-financial assets

Non‑financial assets are assessed at each reporting date for impairment. Impairment is first recognised as a reversal of a previously recorded revaluation reserves for that class of asset. Where no reserve is available, the impairment is recognised in surplus or deficit.

Impairment of financial assets

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

2.10 Provisions

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

2.11 Non-derivative financial instruments

Significant non-derivative financial instruments include cash and cash equivalents, receivables (net of prepayments), community loans, unit trusts, investments in listed and unlisted shares, payables and accruals, certain employee entitlements, tax payable and borrowings. These are recognised initially at fair value. Subsequent to initial recognition, non-derivative financial instruments are recognised as described below.

Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks and other short term highly liquid investments with original maturities of three months or less.

Bank overdraft is included in borrowings in current liabilities within the statement of financial position and as a component of cash and cash equivalents in the statement of cash flows.

These items continue to be measured at fair value.

Receivables

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

Collectability of receivables is reviewed on an ongoing basis. Individual debts which are known to be uncollectible are written off.

Unit trusts and listed shares

Unit trusts and listed shares are measured at fair value. Changes in the fair value are recognised through surplus or deficit.

Other assets

Other assets include bonds, loans to related parties, unlisted shares and community loans. They are subsequently measured at amortised cost using the effective interest method less any impairment losses, with the exception of unlisted shares, which are measured at fair value.

Employee entitlements

Pension liabilities

Contributions to defined contribution retirement plans and the Defined Benefit Contributors Scheme, a multi‑employer defined benefit scheme are recognised in surplus or deficit as they fall due.

Other employee entitlements

Employee entitlements for salaries and wages, annual leave, long service leave and other similar benefits are recognised in surplus or deficit when they accrue to employees. 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 estimated future cash outflows.

Borrowings

Borrowings are subsequently measured at amortised cost using the effective interest rate method. Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for more than 12 months after the balance date. 

2.11 Non-derivative financial instruments (continued)

Realised and unrealised gains and losses for non-derivative financial instruments

Financial assets and liabilities are classified as: fair value through profit or loss, loans and receivables, held to maturity and available for sale. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of financial assets and liabilities at initial recognition.

Where assets are designated as fair value through surplus or deficit, the realised and unrealised gains or losses are recognised as revenue or expense. Movements of unrealised gains and losses for all other categories are recognised in other comprehensive income.

2.12 Derivative financial instruments

Derivative financial instruments are used to hedge exchange rate and interest rate risks. The group does not hold or issue derivative financial instruments for trading purposes.

Derivatives are initially recognised at cost and subsequently measured at fair value. Any resulting gains or losses are recognised in surplus or deficit unless the derivative has been designated into a hedge relationship that qualifies for hedge accounting.

Cash flow hedges

The group recognises the effective portion of changes in the fair value of derivatives that qualify as cash flow hedges in other comprehensive income. Gains or losses relating to the ineffective portion are recognised in surplus or deficit.

On de-recognition, cumulative gains or losses held in other comprehensive income are transferred from reserves to 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 income are transferred to the initial cost or carrying amount of the asset or liability.

Fair value hedges

The gain or loss from re-measuring hedging instruments at fair value, along with the changes in the fair value on the hedged item attributable to the hedged risk, is recognised in surplus or deficit.

If the hedge relationship no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortised to the surplus or deficit over the period to maturity.

2.13 Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the statements of financial position when offsetting is legally enforceable and there is an intention to settle on a net basis. Income and expenses arising as a result of financial instrument earnings or fair value adjustments are recognised as a net result for like items.

2.14 Foreign currency translation

Foreign currency transactions and balances are converted into NZD using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of financial performance, except when deferred in other comprehensive income as qualifying cashflow hedges. All foreign exchange gains and losses are presented within 'net other gains/(losses)'.

Note 3: Significant forecasting assumptions

The significant forecasting assumptions and risks underlying the financial statements outlined in this plan are detailed in the table below. These assumptions are based on the assumptions published in the Long-term Plan 2012-2022 and where relevant, have been reviewed and updated for this annual plan.

Assumption

Level of uncertainty

Risk

Financial impact

Capitalisation and funding of interest

The council will not capitalise interest, but will take the following approach:

  • disclose the full interest expense in the comprehensive income statement
  • but do not fund, by way of rates, the interest incurred during the construction period for multi-year capital projects.

This plan assumes that $56.7 million (2014: 33.9 million) of interest expense will not be funded from rates during the construction of multi-year capital projects.

 

 

Moderate

 

 

That the level of interest incurred during the construction period of multi-year capital projects is different to that forecast

 

 

This assumption is sensitive to interest rates and the timing of the capital expenditure. A 1% change in the amount of interest not funded from rates equates to $0.57 million.

Economic growth

Growth has been measured as the annual change in the Business and Economic Research Limited (BERL) projections for Auckland region's gross domestic product (GDP) adjusted for inflation. The manner in which the growth forecast is reflected in expenditure projections will vary depending on the nature of each activity.

Economic growth will be 2.5 per cent annual change in the Auckland region's GDP adjusted for inflation. 

 

 

Moderate

 

 

That economic growth differs significantly from that forecast in this plan

New Zealand's economic outlook, while outside the council's control, will affect the council's commercial investments such as Ports of Auckland Limited and Auckland International Airport. Economic growth also impacts on affordability of council rates and the utilisation of services with a user charge funding component as discretionary income is impacted. This in turn may drive changes to both operational and capital expenditure.

Population growth

The council has used 2006 census population growth data as a basis for estimating population growth for Auckland over the period of this plan.

Population will increase by around 23,250 people (1.49 per cent) to 1,579,846 in 2014/2015.

 

 

 

 

Low

 

 

That population growth is differs significantly from that forecast in this plan

If actual population 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 growth is affected by a range of external factors, most of which are outside the council's control or influence.

 

Development growth

Dwellings are projected to increase by around 7,480 (1.4 per cent) to 525,070 in 2014/2015.

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.

 

 

Significant

 

 

That the actual levels of development differ from those forecast

Where catering for growth results in additional infrastructure requirements council can collect a portion of the cost through development or financial contributions.

Forecast cash receipts from contributions are recorded in the prospective funding and financial statements in the year they are forecast to be received.

Borrowing is used to manage the timing differences between capital expenditure being incurred and when the completion of development gives rise to a development contribution being received. If development is faster or slower than that forecast, the timing of revenue generated through development and financial contributions will vary, impacting on the level of borrowing required.

Growth in the rating base

The council uses growth in the rating base as an indicative adjustment to the total nominal rates increase to provide an indication of the average rates increase for existing ratepayers. This growth is impacted by property development, including new building and subdivision, which increases the size of the rating base over which the rates requirement is spread.

For this plan, council has assumed a 1.28 per cent increase in the rating base.

 

 

Low

 

That the growth in the ratepayer base differs significantly from that forecast in this plan

Lower than anticipated growth in the rating base would result in slightly lower rates revenue collected over the period of this plan.

Emissions Trading Scheme (ETS)

The legislative requirement under the Climate Change Response Act is for landfill operators to report emissions from January 2013 and surrender units for period January-December 2013 in January 2014 (and yearly after that). This will increase cost to council for waste disposal to landfill. It will also increase costs for the operation of the Council owned Claris landfill site on Great Barrier.

The forecasted cost to the council is based on $10/tonne being passed onto councils for disposal into landfills with gas extraction (all Auckland landfills except Claris). The council currently disposes of 250,000 tonnes of refuse through kerbside collections, inorganic collections and transfer stations. This equates to $2.5 million per annum.

Claris landfill has no gas collection and under the default methodology will incur a cost of $27 per tonne on the 800 tonnes collected annually totalling $22,000 per annum.

 

 

Moderate

That the cost of participating in the Emission Trading Scheme (ETS) is different to that forecast in this plan

An increase in tonnes or cost per tonne would increase the cost to council requiring reduce expenditure in other areas or increase debt.

 

A decrease in tonnes of cost per tonne from that forecast would reduce the costs to council allowing it to increase expenditure in other areas or reduce debt.

Expected return on investments

(ie., dividends, return on shareholdings)

Dividends are forecast to be received from council's investments held by Auckland Council Investments Limited (ACIL). Forecast ACIL dividends from its 22.35% shareholding in Auckland International Airport Limited (AIAL) are based on market analyst forecasts. Dividends from ACIL's 100% shareholding in Ports of Auckland are based on a 75% distribution of forecast after tax profit.

During 2013/2014 AIAL bought back 1 out of 10 shares from its shareholders. This equated to a $102 million return to Auckland. This replaced the $18 million interim dividend previously planned in 2013/2014.

 

 

 

Moderate

 

 

 

That the return on investments will be different from those forecast in this plan

 

 

 

The forecast dividends and returns are dependent of the financial performance of the companies the council has invested in. If the actual returns are significantly less than forecast, the council will need to either decrease other expenditure or increase borrowings. If the actual returns are significantly more than forecast, the council may be able to increase other expenditure or repay borrowings.

Funding depreciation

The council believes it is financially prudent and fair to fully fund depreciation so that each generation pays for the assets it uses. This needs to be balanced against other considerations such as affordability. The council has assumed that it will move to fully funding depreciation net of subsidies and contributions by 2024/2025. However, Watercare Services Limited will continue to fund depreciation to meet forecast average renewal requirements. Targeted rate funded depreciation is 100% funded. For other activities the council will fund 63% of depreciation, net of subsidies and contributions, for 2013/2014 and 2014/2015. The level of depreciation funding will increase by around 3.7% each year, so in 2024/2025 the council would fund 100% of depreciation (excluding depreciation for Watercare and Waterfront Development Agency's commercial operations), net of subsidies and contributions.

 

 

Moderate

 

 

That the actual level of depreciation differs significantly from that forecast in this plan

 

 

The plan includes $736 million depreciation (2013/2014: $696 million). A 1% change in depreciation in 2014/2015 equates to $7.4 million.

 

If depreciation is lower than that forecast the council could choose to fund a higher proportion of depreciation expense than forecast or to increase other expenditure.

 

If depreciation is higher than that forecast the council could choose to fund a lower proportion of depreciation than forecast or to reduce other expenditure.

Inflation

Financial planning information is prepared based on current prices and then adjusted to allow for cost and revenue inflation.

Inflation rates for capital expenditure assumed for the annual plan are based on the inflation forecasts prepared by Business and Economic Research Limited (BERL) and range from 2.2 per cent to 3.3 per cent depending on the type of capital expenditure (e.g. roading, water or property).

The council has used 2.3 per cent inflation for staff costs and 1.0 per cent inflation for all other operating expenditure and revenue. However, for the purpose of this annual plan operating grants and subsidies budgets are not subject to inflation. 

 

 

Moderate

 

 

That actual inflation is different from forecast inflation

 

 

Movements in market prices will impact council's costs and revenues. A 0.1% change in inflation would equate to approximately $20 million in operating expenditure.

 

Interest rates

In preparing this plan is it assumed that the council maintains its AA credit rating. The council's Treasury department has projected the average interest rates, based on an assessment of market yields and anticipated borrowing requirements. For the 2014/2015 year the forecast average interest rate on council borrowing is 5.65 per cent, and on cash holdings is 3 per cent.

 

 

Moderate

 

 

That prevailing interest rates differ significantly from that forecast in this plan

Increases in interest rates flow through to higher debt servicing costs. The council's treasury group has mitigated these risks with a prudent hedging programme. For every 100 basis point (1.0%) change in council's average interest rate, the council's debt servicing costs would change by approximately $60 million.

Local Government Funding Agency

The council is a shareholder in the Local Government Funding Agency (LGFA). The council funds a portion of its borrowings from the LGFA. As a shareholder, Auckland Council has both equity investment (equivalent to 1.6% of its borrowing through LGFA) and guarantee obligations. The financial statements within this plan assume that the council will borrow up to 30% of its funding requirements through the LGFA, on the basis that this does not exceed 40% of the LGFAs annual issuance.

 

 

Low

That a borrower through LGFA defaults on their debt obligation triggering the council's guarantee obligation.

The council shareholding in the LGFA is reflected in an increase in financial assets, and dividend receipts. No guarantee liability is recognised as it deemed not to be material. None of these impacts are considered significant in the context of the consolidated financial statements.

Legislation

The Auckland Council has assumed there will be no material changes to existing legislation and other national standards applicable to Auckland Council.

Council has reviewed the proposed changes to the Local Government Act 2002 currently before parliament and considers that any potential impacts of the changes will be immaterial for the period of this plan.

 

 

Moderate

New legislation or changes to existing legislation may alter the nature and scope of services currently being provided

If changes in legislation require councils to provide further services, or significantly increase levels of compliance or operating costs then this will need to be offset by an increase in fees and charges and or an increase in debt.

New Zealand Transport Authority (NZTA) subsidies

For this plan, the council has made assumptions on level of subsidies it expects to receive from the central government through the NZTA. Auckland Transport has assumed the following subsidy rates:

  • 43% for maintenance works
  • 54% for new construction works
  • subsidy rates approved by NZTA for the projects approved by the former councils and still underway in the period of this plan.

This revenue stream is reflected primarily within Auckland Transport. The gross subsidy revenue projection is based on indicators provided by NZTA. The council has used NZTA guidelines to forecast how the allocation of this funding to each of its transport activities. Central government funding related to specific train purchases is based on confirmed agreements with the government.

Moderate

Changes in subsidy rate and variation in criteria for inclusion in the qualifying programme of works

The council is forecasting $183 million (2013/2014: $168 million) of capital subsidies and $228 million (2013/2014: $220 million) of operating subsidies from NZTA. A 1% change in this subsidy would equate to $1.8 million in capital subsidies, and $2.3 million in operating subsidies.

If the level of subsidy decreases transport infrastructure projects may be reprioritised, or the scope reduced. Alternatively they may be funded through a different source such as increased borrowing.

Conversely an increase in subsidy entitlement may reduce the proportion of transport projects requiring debt funding or provide scope to improve service levels.

Property rental income

Rental income is included in this plan based on the amounts currently received with assumptions on the projected increases across the period of the plan (these are generally in line with the inflation assumption disclosed above).

 

Moderate

That the increase in rental income may differ from that projected due to changes in market rentals or other factors

A shortfall in property rental income would require council to increase other fees and charges, reduce expenditure, or increase borrowings. A 1% change in rental income equals approximately $700,000.

Resource consents

The council has assumed that there will be no significant changes to existing resource or discharge consent conditions.

Low

Conditions attaching to existing resource or discharge consents change, or council is unable to renew these when they expire

A significant change could increase compliance costs, which would need to be funded from reducing expenditure in other areas or from debt.

Revaluation of assets

Auckland Council's accounting policy provides for most fixed assets to be revalued with sufficient regularity (at least every three years) to ensure that the carrying value does not differ materially from fair value. Land under roads are held at cost and not revalued. Where significant the projected impact of asset revaluation on fixed assets values and depreciation expense has been reflected in this plan.

Auckland Council would normally expect to recognise income from a gain in value from its investment properties and assets of its associate entities. For the purposes of this plan, the council does not have sufficiently reliable market information on which to forecast this income. Accordingly no such income is forecast in the prospective financial statements.

High

That actual revaluation movements differ significantly from those forecasted in this plan

If the revaluations are different from those forecasted it will affect asset values and total comprehensive income. In the case of depreciable assets this will flow through to changed levels of depreciation expense.

Timing of capital expenditure

This plan has been developed on the basis of the best available information of the likely timing of specific capital projects and programme

These timing estimates are reflected in the activity statements presented in the plan and the consequential impact of this is reflected in operating expenditure figures for the project's relevant activity

In addition, Auckland Council has assumed that $207 million of capital expenditure will not be delivered within forecast timeframes due to constraints on its overall capacity for capex delivery.

Moderate

That actual timing of the capital programme is different from that forecasted in this plan

Delivery of capital expenditure to a different time frame than projected would impact interest expense, depreciation expense and consequential operating expenditure.

The financial implications of this would depend on the planned funding sources for the relevant capital expenditure and its associated expenses.

Delivering less capital expenditure than planned would result in a reduction in the funding required, usually resulting in a decrease in borrowing from that forecast. Delivering more capital expenditure than planned would result in an increase in the funding required, usually increasing the borrowing requirement.

Useful lives of significant assets

The useful lives of significant assets are shown in the statement of significant accounting policies.

Low

Assets wear out and need to be replaced earlier or later than estimated

Depreciation and borrowing costs would increase if capital expenditure was required earlier than anticipated. However, these impacts could be mitigated by reprioritising the capital expenditure programme.

Weathertightness claims

The council has considered the financial impact of weathertightness claims, including those already lodged and potential claims which may arise under the government's Weathertight Homes Financial Assistance Package. On the basis of an actuarial assessment, a provision of $396 million (2013/2014: $451 million) is carried for future weathertightness claims. Based on an updated assessment completed on June 2013, the council is forecasting claim payments of $70.4 million in 2014/2015 (2013/2014 $54.7 million).

The cost of funding these settlements should not fall unfairly on ratepayers in the year of settlement. Rather than penalising current ratepayers with the full impact of these settlements, it is assumed they will be funded from borrowings and the repayment of these borrowings spread over 30 years.

Moderate

The council's exposure to claims is different than the potential liability forecasted in this plan

If claims are higher or lower than forecast, then the council's levels of borrowing and the associated borrowing costs will also be higher or lower than forecast.

 

 

 

 

Note 4: Reconciliation between prospective statement of comprehensive income and prospective funding impact statement

$000

 Budget 2014

Long-term Plan 2015

Annual Plan 2015

Variance 2015

Notes

Financial year ending 30 June

     

 

   

Operating surplus/(deficit) after income tax per Prospective Statement of Comprehensive Income

(6,138)

153,055

(14,154)

(167,209)

 

     

 

   
     

 

   

Items recognised as income in Statement of Comprehensive Income and as capital expenditure funding sources in Funding Impact Statement:

   

 

   

Capital subsidies

(179,982)

(264,601)

(201,528)

63,073

 

Development contributions

(93,000)

(157,957)

(119,957)

38,000

 
     

 

   

Non-cash items recognised in Statement of Comprehensive Income and not included in Funding Impact Statement:

   

 

   

Depreciation

695,918

744,042

735,997

(8,045)

 

Discounting of weathertightness provision

18,466

10,850

15,801

4,951

 

Amortisation of prepaid leases

(186)

(186)

(283)

(97)

 

Local Government Funding Agency guarantee

0

265

0

(265)

 
     

 

   

Other reconciling items:

   

 

   

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

(1,649)

(4,655)

(4,196)

459

 

Capital distribution from associate not recognised as operating funding in the funding impact statement

83,291

0

0

0

 

Prepaid lease revenue recognised in funding impact statement

0

7,038

13,252

6,214

 

Income tax recognised in statement of comprehensive income not included in the funding impact statement

(3,968)

(11,415)

6,467

17,882

 
     

 

   

Operating funding surplus/(deficit) per Prospective Funding Impact Statement

513,382

476,436

431,399

(45,037)

 

 

Note 5: Prospective prudential financial ratios

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

Auckland Council group

Borrowing

 

 

 

 

 

$000

Budget 2014

Long-term Plan 2015

Annual Plan 2015

Variance 2015

Notes

 

       

 

Auckland Council Group borrowing

6,520,838

7,488,723

7,465,380

(23,343)

 

 

       

 

Less Watercare Services Limited

(1,482,098)

(1,684,695)

(1,626,601)

58,094

1

 

       

 

Other adjustments:

       

 

Liquid assets (Diversified Assets Portfolio)

(331,391)

(283,000)

(331,391)

(48,391)

2

Electric Motor Units (trains) borrowing (NZTA share)

(156,551)

(236,603)

(249,059)

(12,456)

3

Cash and cash equivalents

(239,597)

(16,860)

(261,675)

(244,815)

 

 

       

 

Net borrowing

4,311,201

5,267,565

4,996,654

(270,911)

 

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

7,059,957

7,265,424

7,043,556

479,925

 

           

 

 

 

 

 

 

Revenue

 

 

 

 

 

$000

Budget 2014

Long-term Plan 2015

Annual Plan 2015

Variance 2015

Notes

 

       

 

Total rates per statement of comprehensive income

1,395,290

1,527,239

1,450,798

76,441

 

Add back internal rates elimination

41,765

30,287

46,470

(16,183)

 

Gross rates

1,437,055

1,557,526

1,497,268

60,258

 

 

       

 

Total revenue per statement of comprehensive income

3,114,944

3,499,467

3,243,658

255,809

 

Adjustments:

       

 

Add finance income shown separately

3,643

2,724

4,546

(1,822)

 

Add back internal rates elimination

41,765

30,287

46,470

(16,183)

 

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

119,995

32,696

38,052

(5,356)

 

Less development contributions to fund capital expenditure

(56,613)

(121,186)

(75,984)

(45,202)

4

Less subsidies and grants to fund capital expenditure

(179,982)

(264,601)

(201,528)

(63,073)

 

Gross Group Operating Revenue

3,043,752

3,179,387

3,055,214

124,173

 

 

       

 

Less Watercare Services Limited

(466,450)

(528,895)

(476,380)

52,515

1

 

       

 

Other adjustments:

       

 

Electric Motor Units (trains) Revenue (NZTA payments)

(10,045)

(15,371)

(17,541)

(2,170)

3

 

       

 

Adjusted revenue for ratio calculation

2,567,257

2,635,121

2,561,293

174,518

 

 

Interest

 

 

 

 

 

$000

Budget 2014

Long-term Plan 2015

Annual Plan 2015

Variance 2015

Notes

 

       

 

Auckland Council Group interest expense

347,123

431,682

393,710

(37,972)

 

Auckland Council Group interest income

(3,643)

(2,724)

(4,546)

(1,822)

 

 

       

 

Less Watercare Services Limited

(86,404)

(110,790)

(95,597)

15,193

1

 

       

 

Other adjustments:

       

 

Electric Motor Units (trains) Interest (NZTA funded)

(9,131)

(13,673)

(15,540)

(1,867)

3

 

       

 

Net interest expense

247,945

304,495

278,027

(26,468)

 

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

385,089

396,296

384,194

(12,102)

 

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

359,264

389,382

374,317

(15,065)

 

           

 

 

 

 

 

 

Ratios

 

 

 

 

 

Measure

Budget 2014

Long-term Plan 2015

Annual Plan 2015

Variance 2015

Notes

 

       

 

Net debt as a percentage of total revenue

167.9%

199.4%

195.1%

-4.3%

 

Net interest as a percentage of total revenue

9.7%

11.5%

10.9%

-0.6%

 

Net interest as a percentage of annual rates income

(debt secured under debenture)

17.3%

19.5%

18.6%

-0.9%

 

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 that can be converted to cash if required in an emergency. 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 6: 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 and funding flows through the period of the plan.

$000

Annual Plan 2015

Purpose

As at 30 June

 

 

Reserves

 

 

Asset revaluation reserve

3,933,318

Accumulated gains from asset revaluation

 

 

 

Restricted equity

22,228

See detail below

Targeted rates reserves

17,873

See detail below

Cash flow hedge reserve

(27,525)

Losses recognised as balance date revaluation of hedged funds

Available-for-sale investment revaluation reserve

8,512

Gains from revaluation of the Diversified Financial Assets portfolio

Share of associates' reserves

96,517

Recognition in group accounts of associates' reserves

Other reserves

117,605

 

 

 

 

Total reserves

4,050,923

 

The funding flow for these reserves are:

$000

Annual report 2013

Income

Expenditure

Transfers

Budget 2014

Income

Expenditure

Transfers

Annual Plan

2015

As at 30 June

 

 

 

 

 

 

 

 

 

Reserves

 

     

 

     

 

Asset revaluation reserve

2,039,153

1,232,824

0

0

3,271,977

661,341

0

0

3,933,318

 

 

     

 

     

 

Restricted equity

27,449

290

(2,665)

0

25,073

289

(3,134)

0

22,228

Targeted rates reserves

9,092

80,831

(69,760)

(7,400)

12,764

88,652

(83,541)

0

17,873

Cash flow hedge reserve

(27,525)

0

0

0

(27,525)

0

0

0

(27,525)

Available-for-sale investment revaluation reserve

8,512

0

0

0

8,512

0

0

0

8,512

Share of associates' reserves

96,517

0

0

0

96,517

0

0

0

96,517

Other reserves

114,045

81,121

(72,425)

(7,400)

115,341

88,941

(86,675)

0

117,605

 

 

     

 

     

 

Total reserves

2,153,198

1,313,945

(72,425)

(7,400)

3,387,318

750,282

(86,675)

0

4,050,923

Further details of restricted equity and targeted rates are shown below:

$000

Annual Plan 2015

Purpose

As at 30 June

 

 

Restricted equity

 

 

Statutory funds

10,334

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

Trust and bequests

879

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

Other restricted equity

11,015

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

Total restricted equity

22,228

 

 

 

 

Targeted rates

 

 

City Centre targeted rate reserve

13,927

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

Glorit Flood Gate Restoration targeted rate reserve

(131)

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

Riverhaven Drive targeted rate reserve

(1,062)

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

Jackson Crescent wastewater targeted rate reserve

(4)

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

Point Wells wastewater targeted rate reserve

(122)

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

Targeted Rate - Refuse

4,010

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

Harbourview Orangihina Park targeted rate reserve

1,255

Targeted rate collected for development of Harbourview Orangihina Park

Total targeted rates

17,873

 

The funding flows for these reserves are:

$000

Annual report 2013

Income

Expenditure

Transfers

Budget 2014

Income

Expenditure

Transfers

Annual Plan 2015

As at 30 June

 

 

 

 

 

 

 

 

 

Restricted equity

 

     

 

     

 

Statutory funds

9,809

259

0

0

10,068

266

0

0

10,334

Trust and bequests

873

23

(20)

0

876

23

(20)

0

879

Other restricted equity

16,767

8

(2,645)

0

14,129

0

(3,114)

0

11,015

Total restricted equity

27,449

290

(2,665)

0

25,073

289

(3,134)

0

22,228

 

 

     

 

     

 

Targeted rates

 

     

 

     

 

City Centre targeted rate reserve

(2,069)

20,053

(9,072)

0

8,913

20,226

(15,211)

0

13,927

Glorit Flood Gate Restoration targeted rate reserve

(189)

38

(10)

0

(161)

38

(8)

0

(131)

Riverhaven Drive targeted rate reserve

(1,170)

117

(64)

0

(1,117)

117

(61)

0

(1,062)

Jackson Crescent wastewater targeted rate reserve

(5)

1

0

0

(5)

1

0

0

(4)

Point Wells wastewater targeted rate reserve

(140)

16

(8)

0

(131)

16

(7)

0

(122)

Targeted Rate - Refuse

11,410

60,606

(60,606)

(7,400)

4,010

68,254

(68,254)

0

4,010

Harbourview Orangihina Park targeted rate reserve

1,255

0

0

0

1,255

0

0

0

1,255

Total targeted rates

9,092

80,831

(69,760)

(7,400)

12,764

88,652

(83,541)

0

17,873

 

Note 7: Auckland Council (parent) financial statements

Prospective statement of comprehensive income

Auckland Council parent

$000

Budget 2014

Long-term Plan 2015

Annual Plan 2015

Variance

Notes

Financial year ending 30 June

Revenue

   

 

   

Rates

1,406,676

1,531,416

1,462,534

(68,882)

1

Fees and user charges

194,343

199,290

203,722

4,432

 

Subsidies and grants

25,499

73,431

30,532

(42,899)

2

Development and financial contributions

93,000

157,957

119,957

(38,000)

 

Other revenue

281,988

178,786

167,047

(11,739)

3

Total revenue

2,001,506

2,140,880

1,983,792

(157,088)

 

     

 

   

Expenditure

   

 

   

Employee benefits

441,208

433,950

459,216

25,266

4

Depreciation and amortisation

194,336

222,613

206,377

(16,236)

 

Grants, contributions and sponsorship

564,624

617,237

607,206

(10,031)

5

Other operating expenses

523,662

564,747

509,482

(55,265)

6

Total expenses

1,723,830

1,838,547

1,782,281

(56,266)

 

 

   

 

   

Finance income

79,471

61,343

100,744

39,401

7

Finance expense

309,301

327,492

352,202

24,710

7

Net finance costs

229,830

266,149

251,458

(14,691)

 

     

 

   

Operating surplus/(deficit)

47,846

36,184

(49,947)

(86,131)

 

     

 

   

Surplus/(deficit) before income tax

47,846

36,184

(49,947)

(86,131)

 

     

 

   

Income tax expense

0

0

0

0

 
     

 

   

Surplus/(deficit) after income tax

47,846

36,184

(49,947)

(86,131)

 

 

 

 

 

 

 

Surplus/(deficit) after income tax is attributable to:

   

 

   

Ratepayers of Auckland Council

47,846

36,184

(49,947)

(86,131)

 

Non-controlling interest

0

0

0

0

 

 

47,846

36,184

(49,947)

(86,131)

 

     

 

   

Other comprehensive income

   

 

   

Net gain on revaluation of property, plant and equipment

227,580

356,454

359,739

3,285

8

Total other comprehensive income

227,580

356,454

359,739

3,285

 

     

 

   

Total comprehensive income

275,426

392,638

309,792

(82,846)

 

     

 

   

Total comprehensive income is attributable to:

 

 

 

 

 

Ratepayers of Auckland Council

275,426

392,638

309,792

(82,846)

 

Non-controlling interest

   

 

   

 

275,426

392,638

309,792

(82,846)

 

Notes to previous table:

1.

Prospective rates for 2014/2015 are lower than originally forecast in the long-term plan. This is due to a range of specific savings initiatives and lower inflation projections, resulting in a lower rates requirement. For the purposes of this statement, rates include rates penalties income and are shown net of rates charged on property owned by the council. Refer to the sources of income note for further detail.

2.

The decrease in subsidies and grants is due to capital grants for projects that were deferred to future years.

3.

The variance in other revenue is due to the reclassification of inter-entity parking revenue, included in other revenue in the long-term plan but reclassified as reduced grants paid in the annual plan (see note 5 below).

4.

The variance in personnel costs from the long-term plan is due mainly to a reallocation from consultant and external contract budgets included within 'Other operating expenditure' in the long-term plan, to personnel costs, as the council moves to improve utilisation of its internal staff resource (see note 6 below).

5.

The decrease in grants, contributions and sponsorship expenditure is due mainly to a reduction in the funding by the council parent to fund CCOs' operating expenditure and a reclassification of inter-entity parking revenue (see note 3 above).

6.

The decrease in other operating expenditure is due to the combination of a range of specific savings initiatives, lower average rate of inflation than forecast in the long-term plan and the transfer of budgets to personnel costs (see note 4 above).

7.

The increase in both interest expense and interest income for 2014/2015 is mainly due to a combination of forecasting for a higher cash holding for liquidity purposes and an increase in the proportion of debt requirements for Watercare Services Limited being sourced through the council parent. The overall decrease in net finance cost is due to a lower average interest rate being budgeted on council borrowing compared to that forecast in the long-term plan.

8.

The decrease in net gain on revaluation of property, plant and equipment is due to a change in the forecast timing of revaluation of council assets and a decrease in the rate of inflation applied.

Prospective statement of changes in equity

Auckland Council parent

$000

Contributed equity

Accumulated funds

Reserves

Total

equity (1)

Long-term plan 2015

Variance

Notes

Balance as at 1 July 2013

26,569,092

(479,338)

376,611

26,466,365

27,277,244

(810,879)

2

Surplus/(deficit) after tax

0

47,846

0

47,846

12,228

35,618

3

Other comprehensive income

0

0

227,580

227,580

340,914

(113,334)

3

Total comprehensive income/(loss)

26,569,092

(431,492)

604,191

26,741,791

27,630,386

(888,595)

 

Transfer to/(from) reserves

0

(8,696)

8,696

0

0

0

 

Balance as at 30 June 2014

26,569,092

(440,188)

612,887

26,741,791

27,630,386

(888,595)

 

Surplus/(deficit) after tax

0

(49,947)

0

(49,947)

36,183

(86,130)

3

Other comprehensive income

0

0

359,739

359,739

356,454

3,285

3

Total comprehensive income/(loss)

26,569,092

(490,135)

972,626

27,051,583

28,023,023

(971,440)

 

Transfer to/(from) reserves

0

(2,266)

2,266

0

0

0

 

Balance as at 30 June 2015

26,569,092

(492,401)

974,892

27,051,583

28,023,023

(971,440)

 

Notes:

1.

There is no non-controlling interest in the council. Total equity represents ratepayer equity.

2.

The reduction in opening equity reflects a lower closing equity position in the 2012/2013 annual accounts than was anticipated when the long-term plan was prepared. This was due mainly to the reduced impact of asset revaluations, lower service and other income and higher expenses to operate and maintain council assets as detailed in the 2012/2013 annual report.

3.

For variances in surplus/(deficit) after tax and other comprehensive income refer to notes on the Prospective Statement of Comprehensive income.

Prospective statement of financial position

Auckland Council parent

$000

 Budget

2014

Long-term Plan 2015

Annual Plan 2015

Variance

Notes

As at 30 June

ASSETS

   

 

   

Current assets

   

 

   

Cash and cash equivalents

239,377

47,001

241,127

194,126

1

Receivables and prepayments

118,812

276,853

122,919

(153,934)

2

Other financial assets

415,808

275,000

415,808

140,808

3

Derivative financial instruments

8,524

0

8,524

8,524

 

Inventories

4,231

2,000

4,231

2,231

 

Non-current assets held for sale

38,581

39,931

39,931

0

 

Total current assets

825,333

640,785

832,540

191,755

 
     

 

   

Non-current assets

   

 

   

Receivables and prepayments

68,615

31,400

70,987

39,587

2

Other financial assets

1,529,894

1,126,264

2,188,497

1,062,233

3

Derivative financial instruments

91,979

21,000

91,979

70,979

4

Property, plant and equipment

10,251,401

11,881,377

10,749,365

(1,132,012)

5

Intangible assets

205,547

155,617

209,178

53,561

 

Biological assets

1,722

3,000

1,722

(1,278)

 

Investment property

77,915

68,000

77,915

9,915

 

Investments in associates and joint ventures

3,178

0

3,178

3,178

 

Investments in subsidiaries

20,391,618

20,748,142

20,583,930

(164,212)

6

Deferred tax asset

0

0

0

0

 

Total non-current assets

32,621,869

34,034,800

33,976,751

(58,049)

 
     

 

   

TOTAL ASSETS

33,447,202

34,675,585

34,809,291

133,706

 

     

 

   

LIABILITIES

   

 

   

Current liabilities

   

 

   

Employee entitlements

42,769

51,550

44,515

(7,035)

 

Payables and accruals

434,526

530,084

454,079

(76,005)

2

Borrowings

758,968

936,106

886,359

(49,747)

7

Derivative financial instruments

12,082

4,000

12,082

8,082

 

Tax payable

0

4,000

0

(4,000)

 

Provisions

79,443

66,859

66,358

(501)

 

Total current liabilities

1,327,788

1,592,599

1,463,393

(129,206)

 
     

 

   

Non-current liabilities

   

 

   

Employee entitlements

1,942

3,801

2,021

(1,780)

 

Payables and accruals

50,937

1,912

53,228

51,316

2

Borrowings

4,827,609

4,720,015

5,783,431

1,063,416

7

Derivative financial instruments

130,776

58,000

130,776

72,776

8

Provisions

366,359

276,235

324,859

48,624

9

Total non-current liabilities

5,377,623

5,059,963

6,294,315

1,234,352

 
     

 

   

TOTAL LIABILITIES

6,705,411

6,652,562

7,757,708

1,105,146

 

     

 

   

NET ASSETS

26,741,791

28,023,023

27,051,583

(971,440)

 

$000

 Budget

2014

Long-term Plan 2015

Annual Plan 2015

Variance

Notes

As at 30 June

     

 

   

Equity

   

 

   

Contributed equity

26,569,092

26,150,000

26,569,092

419,092

 

Accumulated funds

(440,188)

160,137

(492,401)

(652,538)

 

Reserves

612,887

1,712,886

974,892

(737,994)

 

Total ratepayers equity

26,741,791

28,023,023

27,051,583

(971,440)

 

Non-controlling interest

0

0

0

0

 

TOTAL EQUITY

26,741,791

28,023,023

27,051,583

(971,440)

 

Notes:

1.

The increase in cash and cash equivalents is due mainly to a planned increase in cash holdings for liquidity purposes.

2.

Current and term receivables and payables have been updated to reflect relative balances in the audited 2012/2013 annual accounts.

3.

The variance in other financial assets is due to opening values being updated to reflect the actual balances recorded in the 2012/2013 annual accounts and an increase in the proportion of Watercare Services Limited debt sourced through the council parent entity, partly offset by the reduction in the internal loan from the council parent entity to Regional Facilities Auckland to provide for the conversion of debt to equity within the CCO.

4.

This variance is due to the increased value of interest rate swap assets recorded in the 2012/2013 annual accounts.

5.

The variance in property plant and equipment is due to lower closing balances in the 2012/2013 annual accounts and the 2013/2014 budget than forecast when preparing the long-term plan. This mainly results from a decrease in the impact of asset revaluation.

6.

The variance in investment in subsidiaries is due to the decreased investment in CCOs by the council parent and the conversion of loans to Regional Facilities Auckland to equity recorded in the 2012/2013 annual accounts, carried through to the 2014/2015 year.

7.

The borrowings opening balance was higher than forecast in the long-term plan due to a range of factors, including increased cash holdings, an increase in the proportion of Watercare Services Limited borrowings sourced through the council parent entity and lower development contribution revenue. Further increases in the 2013/2014 and 2014/2015 are due to additional borrowings by Watercare Services Limited sourced through the council parent entity and additional capital spending by council on parks acquisitions and solid waste infrastructure.

8.

The variance in derivative financial instruments is due to the increased value of interest rate swap liabilities recorded in the 2012/2013 annual accounts.

9.

The variance in provisions is due to the increased provisions recorded in the 2012/2013 annual accounts.

Prospective statement of cash flow

Auckland Council parent

$000

 Budget

2014

Long-term Plan 2015

Annual Plan 2015

Variance

Notes

Financial year ending 30 June

Cash flows from operating activities

   

 

   

Receipts from rates revenue

1,435,202

1,530,747

1,492,462

(38,285)

1

Receipts from customers and other services

571,576

574,461

519,585

(54,876)

 

Interest received

79,471

61,343

100,744

39,401

3

Payments to suppliers and employees

(1,568,827)

(1,674,354)

(1,657,354)

17,000

2

Interest paid

(290,835)

(327,227)

(336,401)

(9,174)

3

Net cash from operating activities

226,587

164,970

119,036

(45,934)

 
     

 

   

Cash flows from investing activities

   

 

   

Proceeds from medium term investments

22,516

24,523

0

(24,523)

 

Repayments of loans from subsidiaries

0

140,940

0

(140,940)

4

Proceeds from sale of property, plant and equipment

42,684

38,581

38,581

0

 

Proceeds from community loan repayments

1,148

2,017

1,749

(268)

 

Purchase of property, plant and equipment

(410,055)

(435,135)

(380,412)

54,723

5

Investment in subsidiaries

(158,021)

(327,506)

(192,312)

135,194

 

Loans to subsidiaries

(647,424)

(158,664)

(646,592)

(487,928)

4

Purchase of intangible assets

(8,357)

(6,363)

(7,752)

(1,389)

 

Purchase of other investments

(5,040)

(1,598)

(3,760)

(2,162)

 

Community loans

(6,000)

(6,000)

(10,000)

(4,000)

 

Net cash from investing activities

(1,168,549)

(729,205)

(1,200,498)

(471,293)

 
     

 

   

Cash flows from financing activities

   

 

   

Proceeds from borrowings

1,740,421

1,537,706

1,841,863

304,157

6

Repayment of borrowings

(856,315)

(994,402)

(758,651)

235,751

6

Net cash from financing activities

884,106

543,304

1,083,212

539,908

 

 

 

 

 

 

 

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

(57,856)

(20,931)

1,750

22,681

 

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

297,233

67,932

239,377

171,445

 

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

239,377

47,001

241,127

194,126

7

Notes:

1.

The decrease in prospective cash flows from rates in 2014/2015 is mainly due to a range of specific savings initiatives and lower inflation projections, resulting in a lower rates requirement than previously forecast. Receipts from rates revenue are shown net of rates charged on property owned by the council parent entity and working capital movements.

2.

The decrease in payments to suppliers and employees is due to a range of specific savings initiatives and lower average rate of inflation than forecast in the long-term plan.

3.

The increase in interest expense and interest income is due to a combination of a higher cash holdings, offset by higher borrowings, and an increase in the proportion of Watercare Services Limited borrowings sourced through the council parent. The increase in interest expense is partially offset by a lower average interest rate being budgeted on council borrowing compared to that forecast in the long-term plan.

4.

The increase in loans to subsidiaries and reduction in repayment of loans from subsidiaries are mainly due to an increase in the proportion of Watercare Services Limited borrowings sourced through the council parent entity where as a repayment was budgeted for in the long-term plan.

5.

The decrease in purchase of property plant and equipment reflects the deferral of capital expenditure to future years.

6.

For the purposes of this statement it is assumed that current borrowings in one year are repaid the following year and refinanced. The movements in proceeds from and repayments of borrowing for 2013/2014, are indicative of the lower proportion of short-term (current) borrowing reflected in the 2012/2013 annual accounts. This impact has been carried through to subsequent years.

7.

The variance from the long-term plan in 2014/2015 cash and cash equivalents is due to a planned increase in the level of cash being held for liquidity purposes.

> Back to Contents of this volume

Prospective funding impact statements for 2014/2015

This section includes:

The council has prepared these prospective funding impact statements to meet the requirements of Clause 5 of the Local Government (Financial Reporting and Prudence) Regulations 2014. They cover the year from 1 July 2014 to 30 June 2015 and outline the council's sources of funding and our plan to apply them. The statements proposed are for the whole council (group) and one for each group of activity.

The Prospective Group of Activities Funding Impact Statements have been prepared on a full group basis. They include the activities and services provided by the Auckland Council, being the Parent entity, and, where appropriate, the activities and services provided by those entities that comprise the Auckland Council group (including all subsidiaries, associates and joint venture arrangements). A full outline of the Auckland Council group and the basis for consolidation is set out in the prospective financial statements.

Auckland Council group consolidated

$000

Budget

2014

Long-term Plan 2015

Annual Plan 2015

Variance

Notes

Financial year ending 30 June

 

Sources of operating funding:

   

 

   

General rates, UAGCs, rates penalties

1,297,115

1,417,085

1,342,893

(74,195)

1

Targeted rates

98,179

110,157

107,905

(2,251)

 

Subsidies and grants for operating purposes

237,339

226,322

242,321

15,999

 

Fees and charges

968,294

1,045,131

1,006,566

(38,565)

2

Interest and dividends from investments

141,034

38,816

47,321

8,505

 

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

223,452

281,669

230,732

(50,935)

 

Total operating funding

2,965,413

3,119,180

2,977,738

(141,442)

 

     

 

   

Applications of operating funding:

   

 

   

Payment to staff and suppliers

2,087,292

2,175,810

2,141,339

(34,471)

3

Finance costs

347,124

437,170

393,715

(43,455)

4

Other operating funding applications

17,615

29,764

11,285

(18,479)

 

Total applications of operating funding

2,452,031

2,642,744

2,546,339

(96,405)

 

     

 

   

Surplus (deficit) of operating funding

513,382

476,436

431,399

(45,037)

 

     

 

   
     

 

   
     

 

   

Sources of capital funding:

   

 

   

Subsidies and grants for capital expenditure

179,982

264,599

201,528

(63,071)

5

Development and financial contributions

93,002

157,957

119,957

(38,000)

 

Increase (decrease) in debt

636,003

796,464

944,544

148,080

6

Gross proceeds from sale of assets

57,684

38,581

58,914

20,333

 

Total sources of capital funding

966,671

1,267,606

1,324,943

57,337

 

     

 

   

Application of capital funding:

   

 

   

Capital expenditure:

   

 

   

- to meet additional demand

316,767

342,718

444,164

101,446

7

- to improve the level of service

674,522

842,719

705,617

(137,102)

8

- to replace existing assets

539,321

493,061

525,419

32,358

9

Increase (decrease) in reserves

54,711

57,946

74,386

16,440

 

Increase (decrease) in investments

(105,268)

(2,407)

6,756

9,163

10

Total applications of capital funding

1,480,053

1,744,042

1,756,342

12,300

 

     

 

   

Surplus (deficit) of capital funding

(513,382)

(476,436)

(431,399)

45,037

 

     

 

   
     

 

   

Funding balance

0

0

0

0

 

Notes to previous table:

1.

Prospective rates for 2014/2015 are lower than originally forecast in the long-term plan. This is due to a range of specific savings initiatives and lower inflation projections, resulting in a lower rates requirement. For the purposes of this statement, rates includes rates penalties income and are shown net of rates charged on property owned by the council group.

2.

The decrease in 2014/2015 fees and user charges revenue compared to the long-term plan forecast is mainly as a result of lower activity revenue on water and wastewater activities.

3.

The decrease in payments to staff and suppliers is due to the combination of a range of specific savings initiatives and a lower average rate of inflation than forecast in the long-term plan.

4.

The decrease in finance cost for 2014/2015 is due to a lower average interest rate being budgeted on council borrowing compared to that forecast in the long-term plan.

5.

The decrease in capital subsidies and grants is due to changes in projected timing of NZTA grants receivable.

6.

The increase in debt is mainly due to increased cash holding and decreased capital subsidies received (see note 5 above).

7.

The increase in capital expenditure to meet additional demand is mainly due to increased spending planned on open space land acquisitions and deferral of parks projects from 2013/2014.

8.

The decrease in capital expenditure to improve levels of services is due to the council providing for the expected carry forward of undelivered capital expenditure.

9.

The increase in capital expenditure to replace existing assets is due to changes in the timing of capital projects.

10.

The increase in investment is mainly due to increased community loans and movements in working capital and cash.

 

Rating mechanism

The following table sets out the revenue and financing mechanisms that the council intends to use, including information about the different rates the council will levy for 2014/2015. More details on how each rate is applied and the council's definition of a separately used or inhabited part of a property are outlined in the Rating Policy in Part V of this volume.

Rate

Differential

Factor

Total value/ number of charges

Rate/charge ($ including GST)

Rates yield ($ excluding GST)

Uniform annual general charge

Not applicable

Separately used and inhabited part

571,173

373.35

185,431,314

Value based general rates

Urban business

Capital value

56,065,092,294

0.00784620

382,519,790

Franklin urban business

Capital value

652,829,774

0.00720042

4,087,524

Urban residential

Capital value

232,080,300,822

0.00322889

651,618,823

Rural business

Capital value

8,558,214,302

0.00707127

52,623,861

Franklin rural business

Capital value

470,153,330

0.00649007

2,653,329

Rural residential

Capital value

14,673,671,779

0.00290600

37,079,782

Farm and lifestyle

Capital value

28,878,285,666

0.00258311

64,865,828

Sea only access

Capital value

528,587,444

0.00080722

371,031

Uninhabited island

Capital value

788,000

0

0

Total value based general rates

1,195,819,968

Waste management targeted rate (Solid waste services)

Waste management - full service for properties in the district of the former Auckland City Council

Number of available services

160,997

242.40

33,935,212

Waste management - waste service where opt out of refuse applies for properties in the district of the former Auckland City Council

Number of available services

1,486

80.02

103,395

Waste management - waste service where opt out of recycling applies for properties in the district of the former Auckland City Council

Number of available services

43

183.21

6,851

Waste management - waste service where opt out of refuse and recycling services applies for properties in the district of the former Auckland City Council

Number of available services

21,962

20.83

397,790

Waste management - additional recycling collection for properties in the district of the former Auckland City Council

Number of available services

621

59.19

31,961

Waste management - recycling collection for properties in the district of the former Franklin District Council (Rate applies to rating units in the Pukekohe, Waiuku and Clarks Beach/Waiau Pa collection areas)

Separately used and inhabited part

12,176

70.96

751,337

Rate

Differential

Factor

Total value/ number of charges

Rate/charge ($ including GST)

Rates yield ($ excluding GST)

 

Waste management - refuse collection for properties in the district of the former Franklin District Council

Separately used and inhabited part

19,437

58.62

990,755

Waste management for properties in the district of the former Manukau City Council

Separately used and inhabited part

105,563

220.68

20,256,897

Waste management for properties in the district of the former North Shore City Council

Separately used and inhabited part

92,197

64.05

5,134,999

Waste management for properties in the district of the former Papakura District Council

Separately used and inhabited part

18,283

111.19

1,767,666

Waste management for properties in the district of the former Rodney District Council

Separately used and inhabited part

44,692

86.93

3,378,463

Waste management for properties in the district of the former Waitākere City Council

Separately used and inhabited part

73,748

23.36

1,498,350

Total Waste Management targeted rates

68,253,676

City centre targeted rate

Urban businesses in the city centre area

Capital value

11,035,381,812

0.00212431

20,384,813

Business improvement district targeted rates

Urban businesses in the Avondale BID area

Per property

107

0.00

0

Capital value

77,253,518

0.00163747

110,000

Urban businesses in the Birkenhead BID area

Per property

136

0.00

0

Capital value

146,198,000

0.00133723

170,000

Urban businesses in the Blockhouse Bay BID area

Per property

31

0.00

0

Capital value

30,224,503

0.00202738

53,284

Urban businesses in the Browns Bay BID area

Per property

84

0.00

0

Capital value

157,200,000

0.00080471

110,000

Urban businesses in the Devonport BID area

Per property

82

0.00

0

Capital value

129,241,000

0.00106777

120,000

Urban businesses in the Dominion Road BID area

Per property

70

0.00

0

Capital value

112,638,982

0.00119963

117,500

Urban businesses in the Ellerslie BID area

Per property

52

0.00

0

Capital value

53,035,587

0.00286223

132,000

Urban businesses in the Glen Eden BID area

Per property

47

0.00

0

Capital value

37,893,000

0.00136569

45,000

Urban businesses in the Glen Innes BID area

Per property

110

0.00

0

Capital value

92,525,879

0.00206629

166,248

Urban businesses in the Greater East Tamaki BID area

Per property

1,939

195.00

328,796

Capital value

3,721,477,650

0.00005290

171,204

Urban businesses in the Heart of the City BID area

Per property

4,155

0.00

0

             

Rate

Differential

Factor

Total value/ number of charges

Rate/charge ($ including GST)

Rates yield ($ excluding GST)

   

Capital value

7,121,092,748

0.00068618

4,249,000

Urban businesses in the Howick BID area

Per property

105

0.00

0

Capital value

124,581,000

0.00129886

140,707

Urban businesses in the Hunters Corner BID area

Per property

152

0.00

0

Capital value

128,871,000

0.00107430

120,388

Urban businesses in the Karangahape Road BID area

Per property

371

0.00

0

Capital value

590,979,099

0.00068245

350,710

Urban businesses in the Kingsland BID area

Per property

244

0.00

0

Capital value

327,553,988

0.00070217

200,000

Urban businesses in the Mahunga Drive BID area

Per property

50

0.00

0

Capital value

128,736,000

0.00067128

75,146

Urban businesses in the Mairangi Bay BID area

Per property

22

250.00

4,783

Capital value

33,173,000

0.00143581

41,417

Urban businesses in the Mangere Bridge BID area

Per property

20

0.00

0

Capital value

11,875,000

0.00259600

26,807

Urban businesses in the Mangere East Village BID area

Per property

3

0.00

0

Capital value

8,200,000

0.00085577

6,102

Urban businesses in the Mangere Town BID area

Per property

52

0.00

0

Capital value

58,450,000

0.00582687

296,157

Urban businesses in the Manukau Central BID area

Per property

388

0.00

0

Capital value

425,998,000

0.00053207

197,095

Urban businesses in the Manurewa BID area

Per property

117

0.00

0

Capital value

120,269,000

0.00126504

132,300

Urban businesses in the Milford BID area

Per property

82

0.00

0

Capital value

143,195,000

0.00096372

120,000

Urban businesses in the Mt Eden Village BID area

Per property

70

0.00

0

Capital value

92,740,519

0.00102965

83,035

Urban businesses in the New Lynn BID area

Per property

154

0.00

0

Capital value

214,883,000

0.00070643

132,000

Urban businesses in the Newmarket BID area

Per property

1,038

0.00

0

Capital value

1,671,802,303

0.00100883

1,466,580

Urban businesses in the North Harbour BID area

Per property

2,266

150.00

295,554

Capital value

2,418,643,000

0.00010814

227,446

Urban businesses in the North West District BID area

Per property

412

0.00

0

Capital value

274,253,500

0.00075477

180,000

Urban businesses in the Northcote BID area

Per property

34

0.00

0

Capital value

34,945,500

0.00394901

120,000

Urban businesses in the Old Papatoetoe BID area

Per property

64

0.00

0

Capital value

58,535,600

0.00165867

84,427

Urban businesses in the Onehunga BID area

Per property

156

0.00

0

Capital value

231,405,823

0.00201308

405,077

Urban businesses in the Ōrewa BID area

Per property

181

0.00

0

Rate

Differential

Factor

Total value/ number of charges

Rate/charge ($ including GST)

Rates yield ($ excluding GST)

   

Capital value

217,277,000

0.00096497

182,318

Urban businesses in the Otahuhu BID area

Per property

655

0.00

0

Capital value

546,082,335

0.00120037

570,000

Urban businesses in the Otara BID area

Per property

55

0.00

0

Capital value

46,170,000

0.00180986

72,662

Urban businesses in the Panmure BID area

Per property

177

0.00

0

Capital value

181,424,896

0.00267974

422,758

Urban businesses in the Papakura BID area

Per property

247

0.00

0

Capital value

231,918,000

0.00086038

173,510

Urban businesses in the Parnell BID area

Per property

271

0.00

0

Capital value

418,259,740

0.00085113

309,558

Urban businesses in the Ponsonby BID area

Per property

250

0.00

0

Capital value

484,027,041

0.00076528

322,102

Franklin urban businesses in the Pukekohe BID area

Per property

544

0.00

0

Capital value

629,266,400

0.00069994

383,000

Urban businesses in the Remuera BID area

Per property

55

0.00

0

Capital value

163,215,582

0.00170908

242,564

Urban businesses in the Rosebank

Per property

474

0.00

0

Capital value

762,585,596

0.00056551

375,000

Urban businesses in the St Heliers BID area

Per property

70

0.00

0

Capital value

97,663,064

0.00186618

158,484

Urban businesses in the Takapuna BID area

Per property

377

0.00

0

Capital value

723,470,500

0.00059775

376,048

Urban businesses in the Te Atatu BID area

Per property

49

0.00

0

Capital value

41,468,500

0.00227402

82,000

Urban businesses in the Torbay BID area

Per property

11

0.00

0

Capital value

12,900,000

0.00124048

13,915

Urban businesses in the Uptown BID area

Per property

703

0.00

0

Capital value

774,615,643

0.00022269

150,000

Franklin rural businesses in the Waiuku BID area

Per property

172

0.00

0

Capital value

97,760,000

0.00129399

110,000

Urban businesses in the Wiri BID area

Per property

332

0.00

0

Capital value

447,210,000

0.00046673

181,500

Total BID targeted rates

14,604,182

Rate

Differential

Factor

Total value/ number of charges

Rate/charge ($ including GST)

Rates yield ($ excluding GST)

Retro-fit targeted rate

Ratepayers in first year of repayment through targeted rate

Extent of financial assistance service provided

4,344,395

0.17083531

645,371

Ratepayers in second year of repayment through targeted rate

Extent of financial assistance service provided

9,449,527

0.18652616

1,532,682

Ratepayers in third year of repayment through targeted rate

Extent of financial assistance service provided

2,877,189

0.20681689

517,436

Kumeu Huapai Riverhead targeted rate

Not applicable

Extent of financial assistance service provided

2,663,955

0.12686375

293,878

Pt Wells wastewater targeted rate

Properties in service area

Extent of financial assistance service provided

24

Fixed amount based on level of assistance provided

14,629

Jackson Crescent wastewater targeted rate

Properties in service area

Extent of financial assistance service provided

1

608.88

529

Riverhaven Drive targeted rate

Properties in service area

Per rating unit

13

10,317.02

116,627

Glorit flood gate targeted rate

Properties in service area

Per hectare protected

3

Fixed amount based on land area protected

38,198

Waitākere rural sewerage targeted rate

Properties in service area

Extent of septic tank pumpout service provided (per tank)

4,595

181.50

725,229

Mangere - Otahuhu swimming pool targeted rate

Residential properties in the Mangere - Otahuhu Local Board

Separately used and inhabited part

18,141

13.77

217,150

Otara - Papatoetoe swimming pool targeted rate

Residential properties in the Otara - Papatoetoe Local Board

Separately used and inhabited part

20,571

31.34

560,550

 

Total rates

1,489,156,231

The total rates yield of $1.489 billion in the previous table is the value of the prospective gross rates. The table below outlines the reconciling adjustments for the net rates revenue shown in the Prospective Statement of Comprehensive Income and the Prospective Funding Impact Statement in part III of this volume.

 

Amount of rates

(excluding GST)

($)

Total rates assessed (from Rating Mechanism table on the previous page)

1,489,156,231

Add on rates penalty revenue (less postponed rates)

22,359,000

Less for remissions

(14,246,788)

Less internal rates on council properties

(46,470,004)

Total rates revenue

1,450,798,439

Rates Revenue by type

$000

Budget 2014

Long-term Plan 2015

Annual Plan 2015

Variance

Notes

Financial year ending 30 June

     

 

   

Rates revenue

   

 

   
     

 

   

Rates

   

 

   

General Rates

1,317,419

1,424,758

1,367,004

(57,754)

 

Targeted Rates

98,178

110,156

107,905

(2,251)

 

Rates penalties and postponements

21,484

22,612

22,359

(253)

 

Total rates revenue after remissions

1,437,056

1,557,526

1,497,268

(60,258)

 

     

 

   

Less:

   

 

   
     

 

   

Internal rates on Council Group properties

41,766

30,286

46,470

16,184

 

Total rates revenue after remissions & internal rates

1,395,290

1,527,240

1,450,798

(76,442)

 

 

Governance and democracy

$000

Budget
2014

Long-term Plan 2015

Annual Plan 2015

Variance

Notes

Financial year ending 30 June

 

 

 

 

 

Sources of operating funding:

         

General rates, UAGCs, rates penalties

26,704

22,162

23,965

1,803

 

Targeted rates

0

0

0

0

 

Subsidies and grants for operating purposes

0

0

0

0

 

Fees and charges

0

0

0

0

 

Internal charges and overheads recovered

0

0

0

0

 

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

1,240

0

0

0

 

Total operating funding

27,944

22,162

23,965

1,803

 

           

Applications of operating funding:

         

Payment to staff and suppliers

21,776

17,081

18,819

1,738

 

Finance costs

(44)

(11)

(43)

(32)

 

Internal charges and overheads applied

6,185

5,062

5,165

103

 

Other operating funding applications

0

0

0

0

 

Total applications of operating funding

27,917

22,132

23,941

1,809

1

           

Surplus (deficit) of operating funding

27

30

24

(6)

 

           
           

Sources of capital funding:

         

Subsidies and grants for capital expenditure

0

0

0

0

 

Development and financial contributions

0

0

0

0

 

Increase (decrease) in debt

24

(30)

(24)

6

 

Gross proceeds from sale of assets

0

0

0

0

 

Lump sum contributions

0

0

0

0

 

Other dedicated capital funding

0

0

0

0

 

Total sources of capital funding

24

(30)

(24)

6

 

           

Application of capital funding:

         

Capital expenditure:

         

- to meet additional demand

0

0

0

0

 

- to improve the level of service

51

0

0

0

 

- to replace existing assets

0

0

0

0

 

Increase (decrease) in reserves

0

0

0

0

 

Increase (decrease) in investments

0

0

0

0

 

Total applications of capital funding

51

0

0

0

 

           

Surplus (deficit) of capital funding

(27)

(30)

(24)

6

 

           

Funding balance

0

0

0

0

 

Note:

1. Application of operating funding - increase due to the cost of additional support resources provided to elected members.

 

Local governance

$000

Budget
2014

Long-term Plan 2015

Annual Plan 2015

Variance

Notes

Financial year ending 30 June

 

 

 

 

 

Sources of operating funding:

         

General rates, UAGCs, rates penalties

31,027

32,725

31,354

(1,371)

 

Targeted rates

0

0

0

0

 

Subsidies and grants for operating purposes

244

50

244

194

 

Fees and charges

0

0

0

0

 

Internal charges and overheads recovered

0

0

0

0

 

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

0

38

0

(38)

 

Total operating funding

31,271

32,813

31,598

(1,215)

 

           

Applications of operating funding:

         

Payment to staff and suppliers

23,961

25,441

24,723

(718)

 

Finance costs

611

525

863

338

 

Internal charges and overheads applied

6,545

6,647

5,885

(762)

 

Other operating funding applications

0

0

0

0

 

Total applications of operating funding

31,117

32,613

31,471

(1,142)

1

           

Surplus (deficit) of operating funding

154

200

127

(73)

 

           
           

Sources of capital funding:

         

Subsidies and grants for capital expenditure

0

0

0

0

 

Development and financial contributions

0

0

0

0

 

Increase (decrease) in debt

5,935

412

2,399

1,987

 

Gross proceeds from sale of assets

0

0

0

0

 

Lump sum contributions

0

0

0

0

 

Other dedicated capital funding

0

0

0

0

 

Total sources of capital funding

5,935

412

2,399

1,987

 

           

Application of capital funding:

         

Capital expenditure:

         

- to meet additional demand

0

0

0

0

 

- to improve the level of service

3,126

386

1,993

1,607

 

- to replace existing assets

2,963

226

533

307

 

Increase (decrease) in reserves

0

0

0

0

 

Increase (decrease) in investments

0

0

0

0

 

Total applications of capital funding

6,089

612

2,526

1,914

2

           

Surplus (deficit) of capital funding

(154)

(200)

(127)

73

 

           

Funding balance

0

0

0

0

 

Notes:

1.  Application of operating funding - decrease is due to efficiency savings and the reallocation of overhead costs.

2.  Application of capital funding - increase is mainly due to the inclusion of some small northern local improvement projects and the inclusion of additional local board support services projects.

Planning and strategy

$000

Budget
2014

Long-term Plan 2015

Annual Plan 2015

Variance

Notes

Financial year ending 30 June

 

 

 

 

 

Sources of operating funding:

         

General rates, UAGCs, rates penalties

54,884

43,187

68,966

25,779

 

Targeted rates

0

0

0

0

 

Subsidies and grants for operating purposes

1,677

1,913

342

(1,571)

 

Fees and charges

0

0

0

0

 

Internal charges and overheads recovered

0

0

0

0

 

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

345

209

0

(209)

 

Total operating funding

56,906

45,309

69,308

23,999

 

           

Applications of operating funding:

         

Payment to staff and suppliers

41,703

30,312

51,598

21,286

 

Finance costs

815

788

934

146

 

Internal charges and overheads applied

13,957

13,090

16,285

3,195

 

Other operating funding applications

0

0

0

0

 

Total applications of operating funding

56,475

44,190

68,817

24,627

1

           

Surplus (deficit) of operating funding

431

1,119

491

(628)

 

           
           

Sources of capital funding:

         

Subsidies and grants for capital expenditure

0

0

0

0

 

Development and financial contributions

0

0

0

0

 

Increase (decrease) in debt

1,220

(1,119)

3,687

4,806

 

Gross proceeds from sale of assets

0

0

0

0

 

Lump sum contributions

0

0

0

0

 

Other dedicated capital funding

0

0

0

0

 

Total sources of capital funding

1,220

(1,119)

3,687

4,806

 

           

Application of capital funding:

         

Capital expenditure:

         

- to meet additional demand

0

0

0

0

 

- to improve the level of service

1,156

0

2,925

2,925

 

- to replace existing assets

495

0

1,253

1,253

 

Increase (decrease) in reserves

0

0

0

0

 

Increase (decrease) in investments

0

0

0

0

 

Total applications of capital funding

1,651

0

4,178

4,178

2

           

Surplus (deficit) of capital funding

(431)

(1,119)

(491)

628

 

           

Funding balance

0

0

0

0

 

Notes:

1.  Application of operating funding - increase is primarily due to additional funding for the Unitary Plan.

2.  Application of capital funding - increase is due to addition of the Asset Management Information System (AMIS) project.

Commercial

$000

Budget
2014

Long-term Plan 2015

Annual Plan 2015

Variance

Notes

Financial year ending 30 June

 

 

 

 

 

Sources of operating funding:

         

General rates, UAGCs, rates penalties

(19,524)

(21,803)

(21,357)

446

 

Targeted rates

0

0

0

0

 

Subsidies and grants for operating purposes

0

0

0

0

 

Fees and charges

7,541

7,305

7,476

171

 

Internal charges and overheads recovered

0

0

0

0

 

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

41,289

58,197

31,746

(26,451)

 

Total operating funding

29,306

43,699

17,865

(25,834)

1

           

Applications of operating funding:

         

Payment to staff and suppliers

20,288

35,805

15,550

(20,255)

 

Finance costs

(1,759)

(3,537)

(3,490)

47

 

Internal charges and overheads applied

10,437

10,721

6,308

(4,413)

 

Other operating funding applications

0

0

0

0

 

Total applications of operating funding

28,966

42,989

18,368

(24,621)

2

           

Surplus (deficit) of operating funding

340

710

(503)

(1,213)

 

           
           

Sources of capital funding:

         

Subsidies and grants for capital expenditure

6,030

13,633

11,850

(1,783)

 

Development and financial contributions

0

0

0

0

 

Increase (decrease) in debt

(30,293)

(15,584)

(31,697)

(16,113)

 

Gross proceeds from sale of assets

42,684

11,023

38,581

27,558

 

Lump sum contributions

0

0

0

0

 

Other dedicated capital funding

0

0

0

0

 

Total sources of capital funding

18,421

9,072

18,734

9,662

 

           

Application of capital funding:

         

Capital expenditure:

         

- to meet additional demand

8,520

1,609

10,985

9,376

 

- to improve the level of service

1,640

1,488

612

(876)

 

- to replace existing assets

8,601

6,685

6,634

(51)

 

Increase (decrease) in reserves

0

0

0

0

 

Increase (decrease) in investments

0

0

0

0

 

Total applications of capital funding

18,761

9,782

18,231

8,449

3

           

Surplus (deficit) of capital funding

(340)

(710)

503

1,213

 

           

Funding balance

0

0

0

0

 

Notes:

1.  Sources of operating funding - decrease is due to reduced revenue projections due to a change in contractual obligations.

2.  Application of operating funding - decrease is due to cost and efficiency savings generated by decreased contractual activity.

3.  Application of capital funding - increase is primarily due to Marine Precinct Development Yard 37 (Hobsonville) project outer year development costs brought forward to 2015/2016.

Investment

$000

Budget
2014

Long-term Plan 2015

Annual Plan 2015

Variance

Notes

Financial year ending 30 June

 

 

 

 

 

Sources of operating funding:

         

General rates, UAGCs, rates penalties

(87,010)

(44,648)

(75,842)

(31,194)

 

Targeted rates

0

0

0

0

 

Subsidies and grants for operating purposes

0

0

0

0

 

Fees and charges

213,656

197,292

224,582

27,290

 

Internal charges and overheads recovered

0

0

0

0

 

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

131,310

36,207

38,052

1,845

 

Total operating funding

257,956

188,851

186,792

(2,059)

 

           

Applications of operating funding:

         

Payment to staff and suppliers

110,208

102,243

110,696

8,453

 

Finance costs

26,280

33,102

24,015

(9,087)

 

Internal charges and overheads applied

(1,624)

271

(1,411)

(1,682)

 

Other operating funding applications

17,615

29,766

11,285

(18,481)

 

Total applications of operating funding

152,479

165,382

144,585

(20,797)

1

           

Surplus (deficit) of operating funding

105,477

23,469

42,207

18,738

 

           
           

Sources of capital funding:

         

Subsidies and grants for capital expenditure

0

0

0

0

 

Development and financial contributions

0

0

0

0

 

Increase (decrease) in debt

(81,189)

(3,587)

35,057

38,644

 

Gross proceeds from sale of assets

0

0

0

0

 

Lump sum contributions

0

0

0

0

 

Other dedicated capital funding

0

0

0

0

 

Total sources of capital funding

(81,189)

(3,587)

35,057

38,644

 

           

Application of capital funding:

         

Capital expenditure:

         

- to meet additional demand

4,317

8,677

40,675

31,998

 

- to improve the level of service

1,800

1,846

19,954

18,108

 

- to replace existing assets

18,171

9,359

16,635

7,276

 

Increase (decrease) in reserves

0

0

0

0

 

Increase (decrease) in investments

0

0

0

0

 

Total applications of capital funding

24,288

19,882

77,264

57,382

2

           

Surplus (deficit) of capital funding

(105,477)

(23,469)

(42,207)

(18,738)

 

           

Funding balance

0

0

0

0

 

Notes:

1.  Application of operating funding - decrease is primarily due to benefits gained from efficiencies associated with managing Auckland Council's investments and changes to the group debt funding application.

2.  Application of capital funding - Increase is due to an increase in the Ports of Auckland capital spend programme.

Regional economic strategy and initiatives

$000

Budget
2014

Long-term Plan 2015

Annual Plan 2015

Variance

Notes

Financial year ending 30 June

 

 

 

 

 

Sources of operating funding:

         

General rates, UAGCs, rates penalties

18,874

21,195

18,593

(2,602)

 

Targeted rates

20,053

20,226

20,226

0

 

Subsidies and grants for operating purposes

0

0

0

0

 

Fees and charges

0

0

0

0

 

Internal charges and overheads recovered

0

0

0

0

 

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

0

765

325

(440)

 

Total operating funding

38,927

42,186

39,144

(3,042)

 

           

Applications of operating funding:

         

Payment to staff and suppliers

11,377

10,518

10,879

361

 

Finance costs

10,404

14,779

11,456

(3,323)

1

Internal charges and overheads applied

3,450

3,478

3,200

(278)

 

Other operating funding applications

0

(1)

0

1

 

Total applications of operating funding

25,231

28,774

25,535

(3,239)

 

           

Surplus (deficit) of operating funding

13,696

13,412

13,609

197

 

           
           

Sources of capital funding:

         

Subsidies and grants for capital expenditure

0

3,281

0

(3,281)

2

Development and financial contributions

355

629

478

(151)

 

Increase (decrease) in debt

20,303

24,524

19,334

(5,190)

 

Gross proceeds from sale of assets

0

0

0

0

 

Lump sum contributions

0

0

0

0

 

Other dedicated capital funding

0

0

0

0

 

Total sources of capital funding

20,658

28,434

19,812

(8,622)

 

           

Application of capital funding:

         

Capital expenditure:

         

- to meet additional demand

28,011

15,368

18,176

2,808

 

- to improve the level of service

6,016

26,312

15,095

(11,217)

 

- to replace existing assets

327

166

150

(16)

 

Increase (decrease) in reserves

0