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Volume 1: Overview

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 mana whenua, 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, mūrau 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 whakatūtū 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 pepeha 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.

How this 10-year Budget 2018-2028 is arranged

Finding your way around the three volumes

Volume 1: An overview of our 10-year Budget

Part 1: Provides an introduction to our 10-year Budget including decisions made on the key issues which were consulted on. Our plan for the next 10 years includes a brief overview of the plans, strategies and budget that has been adopted by the Governing Body.
Part 2: Contains our prospective financial statements for 2018-2028 and other key financial information.
Part 3: Report from the Auditor General.
Part 4: Provides Supplementary information on how to contact the council, its structure and people. Glossary of terms and key word index.

Volume 2: Our detailed budgets, strategies and policies

Part 1: Our key strategies - including a Summary of The Auckland Plan 2050, discussion on Māori Identity and Wellbeing and Auckland's 30-year Infrastructure strategy and Financial strategy.
Part 2: Our Activities - key information on what services Auckland Council delivers, performance measures and budget.
Part 3: Our policies - Revenue and Financing policy, Funding impact statement (including the rating mechanism), Financial reporting and prudence benchmarks, Local board funding policy, Allocation of decision making responsibility for non-regulatory activities, Summary of Significance and Engagement policy and CCO Accountability policy.
Part 4: Summary of the Tūpuna Maunga Authority Operational Plan 2018/2019.
Part 5: Our Council-controlled organisations.
Part 6: Supplementary information - Glossary of terms and Key word index.

Volume 3: Local Board information and agreements

Part 1: Provides information on local boards, the development of local board plans and agreements and a summary of planned local board expenditure for 2018-2028.
Part 2: Contains specific information for each of the 21 local boards, including a local board agreement (outlining local activity initiatives and budgets for 2018/2019), and an introductory section that provides context for the agreement.
Part 3: Supplementary information - Glossary of terms and Key word index.

Rārangi kōrero
Volume 1: Overview

Message from the Mayor
Message from the Chief Executive Officer

Pae tuatahi: Ō mātou mahere
Part 1: Our plan
1.1 Auckland's challenges
1.2 The next 10 years

Pae tuarua: Ō Mātou tahua pūtea
Part 2: Our finances
2.1 Financial overview
2.2 Prospective financial statements and notes
2.3 Prospective consolidated funding impact statement

Pae tuatoru: Tā te kaitātari kaute
Part 3: Auditor's report (not available in the HTML version, available in the PDF or by request)

Pae tuawhā: Pārongo tāpiri

Part 4: Supplementary information
4.1 How the organisation is structured
4.2 How to contact the council
4.3 Glossary of terms

Message from the Mayor

Auckland Council's 2018-2028 10-year Budget delivers $26.2 billion of investment into Auckland's infrastructure. The largest ever in the history of our city.

In striking this budget, we begin a decade of transformational change for Auckland that tackles the critical issues of transport congestion, housing affordability and protecting our environment.

These issues are the result of unprecedented population growth and historic underinvestment in Auckland's infrastructure. To protect our quality of life and to make Auckland a world class city, Council is acting decisively to invest to make Auckland a more exciting, efficient and inclusive place to live, work and play.

The Government and Council are together addressing congestion with a combined package of $28 billion of investment to transform our region's transport network. It will increase the provision of public transport, improve our road network and make it safer, expand cycle and walkways and tackle Auckland's growing congestion. Aucklanders will contribute our fair share in this expenditure through a regional fuel tax (RFT) at 10 cents per litre plus GST.

Building transport infrastructure is critical to supporting the delivery of more houses, unlocking greenfields developments and allowing for intensive housing development around transport hubs.

Many of Auckland's beaches, harbours, streams and aquifers have poor water quality. We had planned to fix the issues causing this problem over the next 30 years - now we're going to do it in 10 years. Some of this work will be funded by water and wastewater charges, and the rest ($452 million) by a water quality targeted rate.

A new natural environment targeted rate will enable us to spend $311 million to tackle the spread of Kauri dieback disease and the predators that are killing our native birds and trees. This work is critical to safeguard our natural heritage for our children and grandchildren.

As a coastal region we must adapt to climate change. An additional $90 million investment in our coastal assets and a further $40 million to address infrastructure repair work will enable us to better anticipate and respond to climate-related events.

Within the constraints of our resources, we also need to promote the innovation, diversity, inclusiveness, and cultural and recreational facilities that make Auckland a great city.

Funding of $120 million is available for the development of sports and recreation facilities. We are also increasing funding to Auckland's Art Gallery and supporting Aucklanders in our poorer communities to gain skills and access job opportunities through the expansion of the Southern Initiative into West Auckland.

This 10-year Budget will help deliver a world class Auckland while keeping rates low and reasonable. It also heralds a new level of transparency and accountability with targeted rates and the Regional Fuel Tax allowing Aucklanders to know exactly where their money is being spent. Ongoing Value for Money reviews are identifying cost savings and service improvements.

Auckland is a vibrant and dynamic region, and the coming decade will be exciting for our city. We are embarking on an investment programme at a level which has not been seen before in New Zealand. It is investment that will make our city a better place to live, that will allow us to grow while protecting our way of life and environment.

Phil Goff

Message from the Chief Executive

Against a backdrop of significant population growth, this budget strikes a balance between investment in critical infrastructure, keeping rate rises low and reasonable, and funding the council services Aucklanders rely on.

The regional fuel tax will support the improvements in transport that Tāmaki Makaurau needs. This means our people will be helping to deliver more public transport, better roads, cycleways and walkways, and better options for Aucklanders to get around.

The water targeted rate will support us to get the right systems in place to stop overflows and keep our waters clean. This is a big and complex job, but our people are up for the challenge so that Aucklanders can enjoy our beaches.

We also have a strong team who care about and are working hard to protect our native birds and trees, including kauri. The targeted natural environment rate will put the work programmes in place that we need to tackle the impacts of Kauri dieback, the management of pests and look after our natural heritage.

At the same time, we'll be continuing our efforts to ensure that we deliver our council services as efficiently and effectively as possible.

Last year we began a series of Value for Money reviews, looking at cost effectiveness and efficiency across the council whānau. So far we have completed reviews for four services. Departments from the council and council-controlled organisations are busy working together to put the recommended actions in place, ensuring that we are offering good value for ratepayers and residents.

We will continue to drive efficiency by becoming a more digital council. We're now halfway to our target of making 70 per cent of our most common transactions available online by 2019. Customers can go online to pay for rates, register dogs, apply for licenses and consents, and make bookings at our many regional parks. We have more services in the pipeline to digitise and make things smarter for our customers.

Our corporate property strategy has benefits of $117 million. This money will help us fund better locations for the public to interact with the council. Better workplaces, coupled with our efforts to improve culture and engagement in the council, will drive better working conditions for staff and boost productivity. Ultimately this will help us attract and keep the talented, passionate people we need to be a great council for Tāmaki Makaurau.

We are committed to building a high performing organisation that will deliver the 10-year Budget and essential council services to all Aucklanders and visitors alike.

Stephen Town

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Part 1: Our Plan

1.1 Auckland's Challenges

The recently revised Auckland Plan identified three key challenges facing Auckland. This 10-year Budget has focused on key aspects of each of these challenges and how the council can respond to them.

Key Challenge 1: Population growth and its implications

Our growth

Underpinning the challenges facing Auckland is the pace of growth that we have been experiencing for the last few years and expect to continue facing over the foreseeable future. Our growth has consistently exceeded forecasts and we expect to be a region of around two million people by 2028. That means the number of people in Auckland will grow by an amount equivalent to the size of the population of Tauranga every three years.

Growth presents us with many opportunities but also presents challenges with demand for new housing, increasing congestion on our roads and pressure on the natural environment.

In addition, there has been past underinvestment in key infrastructure such as transport, stormwater and some community facilities. The pressures of growth just exacerbate some of these existing problems.

Recent increase in Auckland's population

Table of the charted information
Estimated total population as at June1,373,0001,390,4001,405,5001,421,7001,439,6001,459,6001,476,5001,493,2001,526,9001,569,9001,614,5001,657,200
Estimated annual increase in population for year to June blank17,40015,10016,20017,90020,00016,90016,70033,70043,00044,60042,700

Table of the charted information ends.


Table of the charted information
Medium projection (Feb 2015)1,493,2001,646,5001,767,5001,890,9002,010,5002,123,0002,229,300
Medium projection (Feb 2017)1,493,2001,699,9001,859,3001,990,1002,112,0002,222,7002,326,200

Table of the charted information ends.


The combination of rapid growth and a history of underinvestment in transport infrastructure, particularly public transport, means that Auckland's transport system does not meet our needs. Congestion costs the region $1 billion to $2 billion a year and other major transport challenges include:

  • poor travel options, especially in lower income areas
  • a near doubling of deaths and serious injuries on roads since 2012
  • the need to reduce the transport system's environmental impact
  • enabling and supporting a rapid acceleration in the rate of housing construction
  • the need for streets to play a growing role in creating vibrant and inclusive places.

Addressing these transport issues has been a major focus since the councils of Auckland were amalgamated in 2010. Progress has been made in some areas, for example public transport use has grown by around 50 per cent since Auckland Council was formed. However, congestion continues to grow, with up to 800 cars arriving on our roads every week.

These issues reduce our economic productivity and lower the quality of life for those with long and unreliable commutes. Without major new investment, the transport network will struggle to provide sufficient capacity and travel choice to address current issues, let alone keep pace with the 300,000 extra people projected to live in Auckland over the next decade.

The level of investment required is beyond our ability to address on our own, and within traditional funding mechanisms. We need to work with central government to align our transport investments and to find new ways of funding transport infrastructure.

Community cohesion

The rate and speed of Auckland's population growth is putting pressure on our communities. It is not just the rate of growth but the increasing diversity of our population which requires planning and response. There is an increased demand for community infrastructure but also differing types of provision because of an ageing population and the different ethnicities that now call Auckland home. Responding to this changing picture means ensuring our community facilities are fit for purpose going forward and providing a range of community-building initiatives at a local level.


A major concern to Aucklanders is housing supply. The building of new houses has not kept pace with the growing population resulting in a shortage of housing and escalating prices. Housing availability and affordability are difficult problems to solve. The council does not build houses. Our role is to:

  • enable development through our planning functions; such as the Unitary Plan
  • provide infrastructure such as (transport, water, community facilities) to support new housing areas and intensification of existing areas
  • work with central government, iwi and the private sector to support their building programmes
  • regenerate town centres to make them more attractive for development of new housing and businesses.

Infrastructure is a key enabler of housing development, but it is also expensive. While some of the cost can be recovered from developers, often this is long after we have built the infrastructure, and in the meantime, we borrow to cover that cost. We are nearing the limits of what we can sustainably borrow, but the demand to make land available for new housing continues to grow.

Key Challenge 2: Sharing prosperity with all Aucklanders

Many Aucklanders are prosperous and have high living standards, yet there are significant levels of socioeconomic deprivation, often in distinct geographic areas. Income, employment, health and education outcomes are different in various parts of Auckland, and there are distinct patterns across broad ethnic and age groups. In part this is due to unequal access to education and employment opportunities. Along with high and often unaffordable housing costs this is resulting in fewer Aucklanders being able to fully prosper. As Auckland continues to grow, we need to play our part in ensuring that all Aucklanders can benefit from the social and economic prosperity that growth brings and can participate in and enjoy community and civic life.

Māori are over represented in the areas of socioeconomic deprivation. Current data tells us that while socio-economic indicators for Māori are improving, Māori are not benefitting from Auckland's success in comparison to most other Aucklanders. In housing, Māori have higher rates of household crowding, low home ownership rates, and less stability due to high rents.

More than 50 per cent of Māori in Auckland are under the age of 25 and Māori are estimated to continue, over the next thirty years, to have a relatively young population. This means tamariki and rangatahi remain a priority focus. Income levels of Auckland's Māori are directly related to employment in lower paying jobs.

Key Challenge 3: Reducing environmental degradation


The latest State of the Environment (2015) report shows that while Auckland's air quality has improved significantly, marine and freshwater sites have been polluted by sediments and contaminants arising from development, building and industrial activities.

Our ageing sewerage and stormwater systems overflow after heavy rainfall, depositing contaminants into our natural waterways. Many of our beaches are unsafe for swimming after these storm events, with some being permanently closed.

In addition, approximately two-thirds of Auckland's local native species are under threat of extinction. Without substantial increases in investment in this area we estimate:

  • the risk of Kauri dieback spreading is over 80 per cent
  • only 30 per cent of significant ecological sites in council parks will have adequate pest control
  • only 20 per cent of rural Auckland will have adequate possum control
  • there is a high risk of marine pests establishing with risks to ecosystems and costs to aquatic industries.

Auckland's population growth places increasing pressure on the environment. The development of 15,000 hectares of future urban land identified in the Unitary Plan could cause further problems if not managed carefully. Increasing intensification in the existing urban area could exceed the capacity of our current infrastructure unless we invest in keeping up with the growth.

Climate change

Climate change is a global problem that we are experiencing increasingly at a local level. The most recent climate change projections for Auckland indicate warming temperatures, less annual rainfall in the north but more in the south and stronger winds. More frequent, and severe, weather events are expected. Some of our infrastructure may no longer be adequate to deal with more rainfall, or a warmer climate. Sea-level rise will increase risks for assets on the coast from inundation and erosion.

We are already seeing increasing problems with coastal assets, such as sea walls, being severely damaged during storms and roads such as Tāmaki Drive are experiencing inundation on a more regular basis.

Dealing with these issues takes careful planning and a much better understanding of our existing assets - which should be renewed, which should be replaced with more appropriate solutions and which may no longer be needed. It will also require more investment than we have currently been making to maintain these assets.

The Financial Challenge for Auckland Council

All of the challenges outlined above require additional investment to address them. Not all of these costs fall on the council but many of them do. Delivering this new investment while maintaining services such as parks, libraries and waste collection presents a significant financial challenge; balancing the need for investment with:

  • acceptable costs to the community
  • prudent management of debt and sustainable financial management.

We are forecasting about $26 billion of capital investment over the next 10 years and operating costs of around $4 billion to $5.6 billion each year.

We fund our expenditure from different sources depending on the nature of the cost. Our best known source of funding is general rates, charged to homes and businesses. However, more than half of our operating revenue comes from other sources such as water charges, public transport fares, consenting fees, central government subsidies and contributions from developers. We also borrow, when appropriate, for much of our investment in infrastructure roads, footpaths, pipes, and libraries. These are long life assets and by using borrowings, we spread the cost over the generations that use them.

The sustainable management of debt presents a major challenge. Council's approach to manage this challenge is to maintain an AA credit rating from Standard and Poor's (or similar rating from an independent rating agency). To ensure that debt levels continue to remain prudent and sustainable, the council has set a prudential limit of group debt being less than 270 per cent of group revenue. Breaching this ratio is likely to increase our interest costs.

We believe there is no public appetite for major rate increases and if we want to make progress with some of these big challenges that face us we need to find other ways of raising funds.

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1.2 The next 10 years

Over the years since the formation of Auckland Council we have been having conversations with Aucklanders about what they want for their city, both in the long term and in the next few years. These conversations have informed the recent revision of the Auckland Plan and the development of our 10-year Budget (LTP).

In this 10-year Budget we are prioritising our new investment to meet the most pressing needs of Auckland and looking at new ways to fund that investment.

Transport investment and the Regional Fuel Tax

As highlighted earlier in this document, transport is one of the top concerns of Aucklanders. The increasing congestion on our roads reduces our economic productivity (estimates range between $1 billion to $2 billion) and lowers the quality of life for those with long and unreliable commutes. Road safety also continues to deteriorate with a 65 per cent increase in road deaths and serious injuries in Auckland since 2013.

Earlier this year the council and the government jointly released the revised Auckland Transport Alignment Project (ATAP) which sets out key outcomes, focus areas and a package of projects and programmes to achieve those outcomes. This means that both the government's transport investment and the council's are aligned to achieve the best outcomes for Auckland.

In order to fund our additional contribution, we have decided to use a Regional Fuel Tax of 10 cents per litre (plus GST). The government has passed legislation enabling councils to do this. The Regional Fuel Tax will come into effect from 1 July 2018. It will raise revenue of $1.5 billion over 10 years. This will enable us to deliver a transport programme of $12 billion over the 10 years which will include $4.3 billion of transport projects supported by the Regional Fuel Tax ($1.5 billion plus subsidies from the New Zealand Transport Agency and developer contributions). When added to the rest of government funded projects in ATAP Auckland will have $28 billion of investment in transport over the next 10 years.

The key projects that are supported by the Regional Fuel Tax and will be delivered by Auckland Transport over the next 10 years are:

Project $ millionAdditional capital investment: TotalAdditional capital investment: RFT contributionAdditional operating cost: TotalAdditional operating cost: RFT contribution
1 Bus priority improvements2661007235
2 City Centre bus infrastructure16362  
3 Improving Airport Access6826  
4 Eastern Busway (formerly AMETI)743193178
5 Park and Rides6324  
6 Electric trains and stabling39615012963
7 Downtown ferry redevelopment7328  
8 Road Safety5522103015
9 Active transport342112  
10 Penlink20066  
11 Mill Road corridor508102  
12 Road corridor improvements30287  
13 Network Capacity and Performance improvements29699  
14 Growth related transport infrastructure300126  

This programme will enable a significant step in transforming Auckland's transport system by achieving:

  • improved road safety through supporting a substantial reduction in deaths and serious injuries
  • increased availability and use of public transport, which enables more efficient use of existing infrastructure, provides travel options free from congestion and supports improved economic, environmental and social outcomes from less pollution, and from people and business traffic spending less time in congestion
  • more active transport options (walking and cycling) with resultant health benefits and a positive impact on congestion
  • improving access to employment areas which will enable improved economic and social outcomes
  • enabling growth and housing development to address the current shortfall in housing stock.

Water infrastructure

Watercare Services Limited, a Council Controlled Organisation (CCO), is responsible for providing and maintaining the drinking water (water supply) network and the sewerage system (wastewater network). Watercare is funded from user charges for water and wastewater. Stormwater, the network that deals with rainwater from urban areas, such as roads is managed from within the council and is funded by rates and borrowings.

The water and wastewater networks are mostly in good shape and are being developed to cope with the growth of Auckland. However, much of the stormwater network is ageing and does not have sufficient capacity for the growth that is happening. In some areas there are still combined stormwater and wastewater networks. It is these issues that cause major problems in heavy rainfall with sewage and other contaminants polluting our natural waterways.

We did have a programme to fix these issues over the next 30 years but this will now be accelerated and addressed over the next 10 years. This programme will deliver:

Stormwater upgrades and wastewater/stormwater separation in the Western Isthmus
  • reduces overflows into the Waitematā and Manukau harbours
  • beaches from Meola Reef to the Viaduct will be swimmable
  • reduction in intermittent beach closures
  • rehabilitation of Western Isthmus streams
  • reduces demand on the waste water network from stormwater, allowing greater housing intensification in the Western Isthmus catchments
Infrastructure for stormwater contaminant removal across the region
  • reduction of sediment into the Kaipara Harbour
  • reduction in stormwater contaminants across the region
Rehabilitation of urban and rural streams
  • improves the ecological health of the streams and reduces flow of contaminants into harbours
  • enables urban development in areas such as Oamaru creek in East Tamaki
  • stabilises areas of high stream erosion, reducing sedimentation in the harbours and protecting property and infrastructure
Introduction of a proactive regional septic tank monitoring programme
  • develop a regional database of onsite systems, their design parameters and maintenance records
  • first step in identifying the individual properties contributing to the degradation of beaches and waterways, such as at Piha, Bethells Beach, and Little Oneroa on Waiheke

Some of this work will be funded from Watercare's water and wastewater charges. These were already projected to increase by 2.5 per cent per year for water supply and 3.3 per cent per year for wastewater. This increase will be sufficient to cover Watercare's contribution to the programme.

To pay for the balance ($452 million) we have decided to implement a targeted rate, based on property value. This will cost the average residential ratepayer $66 per year, and the average business ratepayer $308 per year.

Housing and development

The council's key role in housing is as an enabler. The Unitary Plan, which was adopted in 2016, sets out where development can occur. We also have a role in enabling development by providing infrastructure in a timely way. Much of this expenditure is eventually recovered from developers through developer contributions. However, it does require upfront financing, and the council's ability to borrow sustainably is now limited.

To address this we have a number of actions underway:

  • the Regional Fuel Tax enables $300 million over 10 years as "seed funding" for transport projects in new development areas
  • we are working with Crown Infrastructure Partners to find ways of funding some of the major infrastructure investments required to support growth
  • investigation of targeted rates, for specific developments, to fund the infrastructure for that development.

We also have a programme, through Panuku Development Auckland (a CCO), to "Transform" or "Unlock" a number of centres around Auckland. Working with the private sector in these locations will enable new housing and business opportunities. This work will be funded through the development and sale of property within each development area.

The city centre will have its development programme accelerated to create a more family, pedestrian and environmentally friendly location, with timing focused on the America's Cup and APEC, due to be held in 2021.

The Downtown programme delivers a connected and accessible waterfront, prepares for growth of cruise and ferry services and supports activation of Queens Wharf. The total forecast cost of this programme is $430 million.

Our contribution to the America's Cup is also included in the 10-year Budget. This is $57 million of capital expenditure and $41 million of operating expenditure (excluding government contributions).

Other infrastructure

Coastal assets and climate change

The effects of climate change are increasingly being felt in storm damage to coastal assets and more frequent landslips across the region. We are implementing a programme to review all of our coastal assets and develop an asset management plan which will enable us to prioritise funding for the renewal of these assets. $1 million is provided in the first two years of the budget to prepare the plan and $10 million per year for the first three years to renew these assets. $79 million is provided for years four to 10 subject to the completion of the asset management plan.

We are also providing an additional $2 million per year for capital works to non-coastal assets and a $20 million response fund for reactive storm damage works.

Parks, recreation and community assets

A key part of our role, and one that is valued at a local level, is the provision of sport, recreational and community facilities. In addition to the existing programme to renew, upgrade and build new facilities we are providing funding in this budget to partner with community groups on increasing provision of indoor and outdoor sports facilities. This contestable fund of $120 million will enable us to leverage external funding to build these facilities to meet the needs of our growing population and their changing preferences. We will also be continuing to develop our network of swimming pools, recreation and leisure centres ($152 million).

As part of this 10-year Budget, each of our 21 Local Boards has identified a project that they believe to be the most important for their local community. Some of these projects are transport related and are therefore funded through the transport budget. Others are funded through existing regional budgets, but the remainder ($170 million) are projects focused on local communities. These projects include major park developments, indoor court facilities, town centre/ precinct developments, beach erosion works and sustainability initiatives.

Protecting our environment

Many of the infrastructure projects already described will help improve our environment. A significant proportion of the transport investment is in public transport. Getting people out of their private car and onto a bus, ferry or train reduces vehicle emissions which has a positive benefit to air quality and our carbon footprint. Similarly, the more people on public transport the less congestion there is which means less travel time and less vehicle emissions.

The investment in the water quality project (described above) has direct environmental benefit for fresh water and marine ecosystems.

In addition, we are implementing an increased programme of environmental initiatives to address the spread of pests, weeds and diseases that are threatening many of our native species.

ActivityProgrammesSplit of additional funding
Pest controlManagement of pest plants and animals, including on parks, regional programmes, spread to islands, freshwater40% ($124.4m)
Islands (Kawau, Waiheke, Aotea)Pest eradication - Waiheke and Kawau multi-species6% ($18.7m)
KauriResearch, community engagement, hygiene stations22% ($68.4m)
KauriCapex track upgrades, installation of vehicle wash downs14% ($43.5m) 
Marine biosecurity Marine Biosecurity pathway management and response1% ($3.1m)
Grant fundingRegional Ecological and Natural Heritage fund to support community action4% ($12.4m)
Pest Free AucklandCommunity engagement programme to support trapping, data management, grants, monitoring and reporting9% ($28m)
Pest Free AucklandCAPEX - Traps, data systems, telemetry1% ($3.1m)
Marine ecologyHabitats - survey and evaluation1% ($3.1m)
Marine ecologySeabirds - implement monitoring and restoration1% ($3.1m)

These projects will make a significant difference in a number of key areas. We expect to be able to reduce the risk of Kauri dieback disease spreading, from 80 per cent to 15 to 25 per cent. The number of significant ecological sites within council parks that have adequate control of pests and weeds will more than double, rural possum control will also be significantly increased.

To pay for this programme we are introducing a targeted rate which will enable $311 million investment over the 10 years. This rate will be set based on property value but for the average residential ratepayer will cost $47 per year and for the average business ratepayer $219 per year.

Another key initiative that has been underway for some time but takes another step forward in this 10-year Budget is the Waste Management and Minimisation Plan. We already offer kerbside recycling and inorganic collections across the Auckland region, which reduce the amount of waste going to landfill.

The next step in this programme is the introduction of food scrap collections across the urban area. This service is expected to divert approximately 50,000 tonnes per year from landfill which equates to approximately 21 per cent of kerbside waste. Alongside the rollout of this programme, user pays will be implemented for the remaining parts of Auckland that do not currently operate this way (the former Auckland and Manukau areas).

Other projects and programmes

The 10-year Budget has made provision for a range of other new, or increased, projects or programmes which support the community, many of them by working with community based partners. Some examples are:

  • additional funding for co-governance entities - Tūpuna Maunga Authority ($16.8 million capital and $6.7 million operating), Ngāti Whātua Ōrākei Reserves Board ($7.7 million capital and $6.6 million operating), Te Poari o Kaipātiki ki Kaipara ($8.7 million capital and $2.8 million operating)
  • additional funding ($4.3 million) of the contestable grant funds for arts and culture programmes, community development and safety programmes, and regional events. This brings the total amount of these funds to $20 million over the 10 years
  • additional capital funding for Surf Lifesaving Northern Region for the development or renewal of facilities at Karioitahi, North Piha and Orewa ($3.7 million)
  • a capital grant to the Auckland Marine Rescue Centre Trust for urgent repair and renewal of their building ($2 million)
  • operating grants to - the Auckland City Mission ($475,000), Māngere Mountain Education Trust ($204,000), Hibiscus Youth Council Centre ($100,000).

Another partnership project follows the success of the place based programme in the south of Auckland (the Southern Initiative). This programme is being extended to the western part of Auckland with funding of $500,000 per year. This programme works with central government departments and community groups to address some of the social and economic challenges that these communities face.

Some additional funding has also gone into regional facilities such as Auckland Zoo (for renewals and animal acquisition) and the Art Gallery (for operating costs).


The council runs a programme, across the council group, which focuses on achieving improved outcomes for Māori - Te Toa Takitini. The Independent Māori Statutory Board has identified areas, for this 10-year Budget, where additional funding should be applied. These areas focus on improving visibility and support for Māori identity, relationship agreements with the 19 iwi of Tāmaki Makaurau, support for Māori economic development and infrastructure development for sites of cultural significance. This will bring the total budget for Te Toa Takitini to $150 million over the 10 years.

Financial impacts
Capital Programme

The additional investment described in the sections above, when added to the existing projects and programmes in the base budget results in a capital investment of about $26 billion (including our funding of CRL Ltd and investment made by Crown Infrastructure Partners) over the next 10 years.

The capital programme includes $12 billion of transport infrastructure investment and $7.1 billion of water infrastructure. See the chart below:

This level of spend would result in council debt growing by $4.8 billion over the next 10 years, from $8.3 billion in June 2018 to $13.1 billion by June 2028. This level of debt still enables us to remain within our prudential borrowing ratios, particularly in respect of our target to keep borrowings at a level not exceeding 265 per cent of our revenue. To maintain our credit rating with Standard and Poors the limit is 270 per cent.

Capital investment for Auckland

Table of the charted information
$millionAnnual Plan
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
Other council assets7118385974855016356427361,142809764
Transport infrastructure8441,0251,2171,2901,3001,2191,1971,1471,0171,2841,270
Water infrastructure462641695739796734842870552598617

Table of the charted information ends.

Debt to revenue ratio

Table of the charted information
$millionAnnual Plan
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
Capex delivered for Auckland2,0172,5042,5102,5152,5972,5872,6812,7532,7112,6912,650
Debt limit270%270%270%270%270%270%270%270%270%270%270%
Internal ceiling265%265%265%265%265%265%265%265%265%265%265%
Debt to revenue ratio244%254%260%264%263%264%264%259%258%252%243%

Table of the charted information ends.

Operating costs

Operating costs cover provision of day to day services such as waste collection, mowing parks, maintaining our roads, footpaths, water and stormwater pipes, environmental protection, running our libraries, swimming pools and other community facilities. They also include interest and depreciation which are driven by our capital programme. In this 10-year Budget operating costs will move from $4 billion in 2018/19 to $5.6 billion in 2027/28. These costs are funded from a variety of sources including general rates, targeted rates (for specific projects and programmes), user charges and government subsidies.

Average general rate increases have been set at 2.5 per cent per year for the first two years of the 10-year Budget. The average general rate increases for the remaining years are 3.5 per cent per year.

New targeted rates have been introduced (as described earlier in this section) to fund the accelerated water quality programme and the additional investment in protecting our environment [1].

The Regional Fuel Tax is a new funding source and is specifically dedicated to new transport projects and is matched by a lift in funding from the New Zealand Transport Agency (represented by government subsidies in the chart).

Council's sources of operating funding

Table of the charted information
$millionAnnual Plan
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
10-year Budget
General rates1,5171,5881,6601,7521,8491,9502,0562,1682,2862,4092,538
Targeted rates198213224220227232237241245250255
Fees and charges1,2561,3481,4241,5301,5941,6571,7251,7891,8541,9272,001
Regional Fuel Tax0150150150150150150150150150150
Government subsidies274287297306314321329336343349356
Other revenue357351364360377394384403385395403

Table of the charted information ends.

Maximising value

To manage the pressure on our costs we focus on delivering our services in the most efficient manner, to ensure we get the best value from every dollar we collect. Ongoing efficiency initiatives include improved business processes, better use of technology and better procurement and tendering processes. Through this we will aim to control the growth in our core operating expenditure.

Additionally, in this 10-year Budget we have decided to disestablish the CCO, Auckland Council Investments Limited, absorbing their functions into the council and making a saving of approximately $800,000 per year.

We also continue to review our non-strategic assets with a view to releasing funding for re-investment through sale of those assets.

Our total budget and activities

The following chart sets out the total budget for the next 10 years by each of our key activity areas and also shows how each area is funded.

10-year Budget at a glance

Key areas of spendCapital spend
Operating spend
How operating costs are fundedRates value
per $100
Transport$12.0b$17.3bOther, including fees and charges: 53%
Rates: 47%
Water, wastewater and stormwater$7.1b$8.5bOther, including fees and charges: 80%
Rates: 20%
Parks and community$3.7b$8.0bOther, including fees and charges: 11%
Rates: 89%
Centres development$1.3b$1.7bOther, including fees and charges: 42%
Rates: 58%
Economic and cultural development$0.4b$2.3bOther, including fees and charges: 37%
Rates: 63%
Environmental management and regulation$0.1b$4.8bOther, including fees and charges: 52%
Rates: 48%
Other$1.6b$5.3bOther, including fees and charges: 73%
Rates: 27%


What will be deliveredKey performance indicators
  • Building and maintaining all local and main arterial roads
  • Provision of public transport services - trains, bus and ferries
  • Building and maintaining footpaths, cyclepaths, bridges, carparks culverts etc
  • Road safety, education and enforcement
  • Major infrastructure projects, including City Rail Link and Eastern Busway
  • Implementation of the Regional Fuel Tax will enable an additional $4.3 billion of transport projects focused on increased public transport provision, improved road safety, expanded walking and cycling facilities, road corridor improvements and supporting growth areas
  • Over 10-years increase public transport boardings by 53 million trips to 149 million trips annually, maintain punctuality at 95% and customer satisfaction at 85%
  • Improve the productivity of key arterial roads in the morning peak by 14% by 2028
  • Ensure at least 80% of our urban roads meet maintenance standards in terms of ride quality
  • Grow the number of cycling trips on Auckland Transport's designated routes from 3.6 million to 5.7 million by 2028
  • Improving the quality of water in streams and harbours.
  • Building and maintaining the network of pipes, dams, treatment plants, pumps required to maintain a high standard of drinking water and the safe discharge of wastewater and stormwater
  • The delivery of major projects such as the 13-kilometre Central Interceptor wastewater project and wastewater/stormwater separation in the Western Isthmus
  • Infrastructure for stormwater contaminant removal across the region
  • Maintain 100% compliance with Drinking-water Standards for New Zealand
  • Ensure less than 10 wastewater system overflows per 1000 connections in dry weather conditions
  • Ensure no more than 1 in 1000 properties connected to our stormwater system is flooded per year
  • Increase the proportion of time beaches are suitable for contact recreation during swimming season from 77% to 87% by 2028
  • Maintaining the network of libraries, community facilities, swimming pools and recreation centres
  • Arts and cultural facilities, activities and community events
  • Local community projects including major park developments, indoor court facilities, town centre/precinct developments, beach erosion works and sustainability initiatives.
  • More investment in areas such as the development of sports and recreation facilities and coastal assets
  • Supporting Tūpuna Maunga o Tāmaki Makaurau Authority to protect and restore the maunga
  • Ensure the overall satisfaction with our local and regional parks and sport fields is above 70% and they continue to have a high level of use
  • Maintain the percentage of customers satisfied with libraries at 85%
  • Improve the number of participants at arts and community facilities to 6.1 million
  • Attendance of 62,500 per annum at council-led community events
  • New housing and business opportunities through the "Transform" and "Unlock" of a number of centres around Auckland
  • The city centre development programme, including accelerating the downtown works to align with major events in the city
  • Infrastructure to support the 36th America's Cup
  • Creating a vibrant Waterfront that attracts over 80% of Aucklanders to the Waterfront each year by 2028
  • Ensure 80% of the City Centre Targeted Rate programme is delivered on time and within budget
  • Managing major attractions, venues and sports stadiums
  • Major renewals across key facilities such as the Auckland Zoo and Aotea Centre
  • $20 million additional funding to support the Auckland Art Gallery
  • Growing the value of Auckland's visitor economy
  • Supporting the creation of more high value jobs, businesses and investment
  • Grow visitors to Regional Facilities Auckland's venues from 3.5 million to 4 million visitors by 2028
  • Increase major events and business events contribution from $49 million to $70 million towards the regional GDP by 2028
  • Protecting biodiversity with an additional $311 million to tackle the spread of Kauri dieback disease and the predators that are killing our native birds and trees
  • Waste collection, including recycling and reducing waste to landfill
  • Undertaking regulatory activities such as resource and building consents, dog control, food licensing and swimming pool inspections
  • 85% of kauri areas on council land that have active management in place for kauri dieback disease
  • Increase the percentage of threatened plants and animals under active management from 38% to 68% by 2028
  • Increase the number of resource recovery facilities to 12 by 2028
  • Decrease the domestic kerbside refuse from 150kg to 110kg per person per year by 2028
  • Process 100% of building and non-notified resource consents within 20 statutory working days
  • Mayor, councillor and local board support and meeting processes
  • Corporate functions such as finance, legal, communications and human resources
  • Auckland Emergency Management which proactively manages civil defence, hazards and crisis management
  • Ownership of Ports of Auckland
  • Grants to Auckland War Memorial Museum, MOTAT and the Auckland Regional Facilities and Amenities
  • Maintaining our annual growth in core operating expenditure under 3.5% over the 10-years
  • Value for Money reviews, looking at cost effectiveness and efficiency across the council
  • Ensuring over 65% of Aucklanders are prepared for an emergency and 75% of Aucklanders have a good understanding of the emergencies that could occur
  • At least 40% of eligible voters take part in local elections

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2.0 Our finances

2.1 Financial overview


This section provides a high-level overview of our key financial information and explains how we fund our activities. This should be read in conjunction with the Prospective financial statements in Part 2.2 of this volume, the financial information for individual groups of activities in volume 2 (Part 2) and the Revenue and Financing policy in volume 2 (Part 3.1) of this plan.

Key financial parameters for 2018-2028

($ million)2018/192019/202020/212021/222022/232023/242024/252025/262026/272027/28Total
Total capital expenditure2,1782,1682,1152,1492,2132,5722,6962,6772,6312,65024,049
Total operating expenditure4,0154,1704,3474,5224,6874,8525,0335,2135,4045,61047,853
Rates revenue1,7971,8781,9652,0682,1742,2852,4012,5242,6522,786 
Average general rates increase2.5%2.5%3.5%3.5%3.5%3.5%3.5%3.5%3.5%3.5% 
Total assets51,33354,19058,66260,26263,03967,27868,88771,73775,78877,214 
Total borrowing9,2419,94510,65711,14211,68512,13512,44012,84713,04413,097 
Total equity38,47440,64144,22945,30447,44950,88752,09154,49058,08459,386 
Debt to revenue ratio254%260%264%263%264%264%259%258%252%243% 

Capital investment and debt levels

Capital expenditure is for purchasing, building, replacing or developing the city's assets (for example roads, libraries, parks and sports fields). The assets of the Auckland Council group are expected to grow from $51.3 billion to $77.2 billion over the period of this plan.

Over the next ten years we plan to invest $15.9 billion in new and improved assets for Auckland. Combined with $8.1 billion to restore and replace existing assets, our total capital expenditure programme for 2018-2028 is $24 billion. In addition City Rail Link Limited and Crown Infrastructure Partners are expected to incur a further $2 billion dollars of capital expenditure over this period. Therefore the total capital investment for Auckland over the next 10 years is $26 billion.  

The following table shows how we plan to fund our capital expenditure and other capital outflows over the course of the 10-year Budget 2018-2028.

Capital expenditure and other outflows
2018/2019 - 2027/2028
$ billion
Service level improvement8.7
Weathertightness claims0.3
Funding sources
2018/2019 - 2024/2028
$ billion
Capital subsidies5.1
Development contributions2.9
Asset sales0.8
Operating cash surplus12.4

Operating expenditure and revenue sources

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

It is forecast that the Auckland Council group will spend $48 billion in operating expenditure to support service delivery over the next 10 years, of which $4 billion is budgeted for 2018/2019.

The $48 billion of operating revenue sources includes a surplus of $12.4 billion to fund capital expenditure.

Operating expenditure
2018/2019 - 2027/2028
$ billion
Depreciation and amortisation12.2


Revenue sources
2018/2019 - 2027/2028
$ billion
Fees and user charges16.8
Subsidies and grants3.2

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2.2 Prospective financial statements

Prospective statement of comprehensive revenue and expenditure

Auckland Council group consolidated


Financial year ending 30 June

Annual Plan 2017/18LTP 2018/19LTP 2019/20LTP 2020/21LTP 2021/22LTP 2022/23LTP 2023/24LTP 2024/25LTP 2025/26LTP 2026/27LTP 2027/28
Fees and user charges1,255,6811,347,9871,424,2811,529,5581,593,9061,656,9391,725,0201,788,5401,854,3901,926,7102,001,497
Grants and subsidies676,788698,840784,015781,007784,766752,055881,436897,167854,224929,676987,602
Development and financial contributions214,359204,492288,657306,698297,514301,301301,301301,301301,301295,771293,223
Other revenue277,405417,624426,073430,473443,823446,083450,246453,856457,313459,399472,281
Vested assets201,594284,486269,609375,122364,322319,355395,611352,962327,878318,834330,923
Finance revenue8,17112,69812,99812,96712,86212,68912,62512,60912,68012,69412,699
Total revenue4,344,0024,762,8575,083,3795,401,0625,564,8605,662,5776,051,5346,207,4516,331,5696,595,2926,884,411
Employee benefits864,197905,289927,418950,505971,516994,0031,019,2921,041,6721,065,1501,088,5681,113,120
Depreciation and amortisation924,899953,461999,0431,037,5781,107,1801,164,9691,214,2851,297,1291,371,1341,452,1131,554,259
Grants, contributions and sponsorship134,426141,323133,325133,743139,933140,306141,427142,565143,605144,666145,703
Other operating expenses1,418,5511,540,4481,594,3321,659,7061,705,9141,776,4161,845,5821,909,2061,972,6282,042,7002,111,956
Finance costs464,802473,461517,484565,169596,004612,335630,917643,250660,413675,750685,607
Total expenditure3,806,8754,013,9824,171,6024,346,7014,520,5474,688,0294,851,5035,033,8225,212,9305,403,7975,610,645
Operating surplus537,127748,875911,7771,054,3611,044,313974,5481,200,0311,173,6291,118,6391,191,4951,273,766
Share of surplus in associates and joint ventures61,44967,41567,96869,70072,28769,71868,66370,62972,84875,09377,444
Surplus before income tax598,576816,290979,7451,124,0611,116,6001,044,2661,268,6941,244,2581,191,4871,266,5881,351,210
Income tax expense30,82534,64338,68040,26441,52244,18146,70840,20742,03645,58549,185
Surplus after income tax567,751781,647941,0651,083,7971,075,0781,000,0851,221,9861,204,0511,149,4511,221,0031,302,025
Surplus after income tax is attributable to:           
Ratepayers of Auckland Council567,751781,647941,0651,083,7971,075,0781,000,0851,221,9861,204,0511,149,4511,221,0031,302,025
Other comprehensive revenue/ (expenditure)           
Net gain on revaluation of property, plant and equipment1,309,45901,225,7402,697,64001,144,8982,413,37901,249,0502,578,6090
Tax on revaluation of property, plant and equipment(126,398)00(193,913)00(196,960)00(205,337)0
Total other comprehensive revenue/ (expenditure)1,183,06101,225,7402,503,72701,144,8982,216,41901,249,0502,373,2720
Total comprehensive revenue/ (expenditure)1,750,812781,6472,166,8053,587,5241,075,0782,144,9833,438,4051,204,0512,398,5013,594,2751,302,025

Prospective Statement of Changes in Equity

Auckland Council group consolidated


Financial year ending 30 June


Plan 2017/18





















Contributed equity           
As at 1 July26,728,53826,728,53826,728,53826,728,53826,728,53826,728,53826,728,53826,728,53826,728,53826,728,53826,728,538
Surplus after income tax00000000000
Other comprehensive revenue00000000000
Total comprehensive revenue00000000000
Transfer from/ (to) reserves00000000000
Balance as at 30 June26,728,53826,728,53826,728,53826,728,53826,728,53826,728,53826,728,53826,728,53826,728,53826,728,53826,728,538
Accumulated funds           
As at 1 July579,7691,495,9712,263,6413,238,3004,338,6365,399,3156,400,5237,629,8298,852,30210,020,04011,219,133
Surplus after income tax567,751781,647941,0651,083,7971,075,0781,000,0851,221,9861,204,0511,149,4511,221,0031,302,025
Other comprehensive revenue00000000000
Total comprehensive revenue567,751781,647941,0651,083,7971,075,0781,000,0851,221,9861,204,0511,149,4511,221,0031,302,025
Transfer from/ (to) reserves9,224(13,977)33,59416,539(14,399)1,1237,32018,42218,287(21,910)(21,697)
Balance as at 30 June1,156,7442,263,6413,238,3004,338,6365,399,3156,400,5237,629,8298,852,30210,020,04011,219,13312,499,461
As at 1 July6,861,5239,468,2709,482,24710,674,39313,161,58113,175,98014,319,75516,528,85416,510,43217,741,19520,136,377
Surplus after income tax00000000000
Other comprehensive revenue1,183,06101,225,7402,503,72701,144,8982,216,41901,249,0502,373,2720
Total comprehensive revenue1,183,06101,225,7402,503,72701,144,8982,216,41901,249,0502,373,2720
Transfer from/ (to) reserves(9,224)13,977(33,594)(16,539)14,399(1,123)(7,320)(18,422)(18,287)21,91021,697
Balance as at 30 June8,035,3609,482,24710,674,39313,161,58113,175,98014,319,75516,528,85416,510,43217,741,19520,136,37720,158,074
Total equity[2]           
As at 1 July34,169,83037,692,77938,474,42640,641,23144,228,75545,303,83347,448,81650,887,22152,091,27254,489,77358,084,048
Surplus after income tax567,751781,647941,0651,083,7971,075,0781,000,0851,221,9861,204,0511,149,4511,221,0031,302,025
Other comprehensive revenue1,183,06101,225,7402,503,72701,144,8982,216,41901,249,0502,373,2720
Total comprehensive revenue1,750,812781,6472,166,8053,587,5241,075,0782,144,9833,438,4051,204,0512,398,5013,594,2751,302,025
Transfer from/ (to) reserves00000000000
Balance as at 30 June35,920,64238,474,42640,641,23144,228,75545,303,83347,448,81650,887,22152,091,27254,489,77358,084,04859,386,073

Prospective Statement of Financial Position

Auckland Council group consolidated


As at 30 June

Annual Plan 2017/18LTP 2018/19LTP 2019/20LTP 2020/21LTP 2021/22LTP 2022/23LTP 2023/24LTP 2024/25LTP 2025/26LTP 2026/27LTP 2027/28
Current assets           
Cash and cash equivalents240,000200,000200,000200,000200,000200,000200,000200,000200,000200,000200,000
Receivables and prepayments281,657415,555439,851458,736476,609490,161520,512539,831554,358581,344608,476
Other financial assets101,81250,85050,85050,85050,85050,85050,85050,85050,85050,85050,850
Non-current assets held-for-sale114,504104,00071,000174,00065,00043,00040,00057,00064,00039,00039,000
Total current assets767,391807,177799,392922,219832,058824,600852,966890,325912,918915,997944,249
Non-current assets           
Receivables and prepayments78,84010,84011,47411,96712,43312,78713,57914,08314,46215,16615,874
Derivative financial instruments263,000170,000170,000170,000170,000170,000170,000170,000170,000170,000170,000
Other financial assets151,982165,138174,629178,813182,446186,461190,154193,286197,401201,094204,293
Property, plant and equipment44,763,46047,283,46849,881,56853,865,45055,220,17757,708,20361,857,50363,582,15766,437,08470,517,80671,957,721
Intangible assets352,534511,789507,053499,049485,142466,333443,341413,323377,028333,864282,037
Investment property681,000735,000735,000735,000735,000735,000735,000735,000735,000735,000735,000
Investments in associates and joint ventures1,082,6101,638,8311,899,9392,268,2792,614,0062,925,0253,003,9982,877,3932,882,5072,887,9092,893,646
Other non-current assets2,00011,00011,00011,00011,00011,00011,00011,00011,00011,00011,000
Total non-current assets47,375,42650,526,06653,390,66357,739,55859,430,20462,214,80966,424,57567,996,24270,824,48274,871,83976,269,571
Total assets48,142,81751,333,24354,190,05558,661,77760,262,26263,039,40967,277,54168,886,56771,737,40075,787,83677,213,820



As at 30 June

Annual Plan 2017/18LTP 2018/19LTP 2019/20LTP 2020/21LTP 2021/22LTP 2022/23LTP 2023/24LTP 2024/25LTP 2025/26LTP 2026/27LTP 2027/28
Current liabilities           
Payables and accruals757,124888,876897,208900,675920,596951,6341,049,6491,093,0241,103,7071,109,8301,129,545
Employee entitlements96,859100,823103,288105,859108,199110,703113,519116,012118,627121,236123,970
Derivative financial instruments7,0007,0007,0007,0007,0007,0007,0007,0007,0007,0007,000
Total current liabilities2,294,9542,315,0402,403,1072,488,3962,567,9642,671,4712,830,6622,915,1252,981,3883,015,3613,044,419
Non-current liabilities           
Payables and accruals82,89285,969102,711111,463125,165152,412169,008195,390195,126201,268202,745
Employee entitlements5,3815,3075,4375,5725,6955,8275,9756,1066,2446,3816,525
Derivative financial instruments1,207,000865,000865,000865,000865,000865,000865,000865,000865,000865,000865,000
Deferred tax liabilities1,253,7951,310,2211,348,9011,583,0781,624,6001,668,7811,912,4491,952,6561,994,6922,245,6142,294,799
Total non-current liabilities9,927,22110,543,77711,145,71711,944,62612,390,46512,919,12213,559,65813,880,17014,266,23914,688,42714,783,328
Total liabilities12,222,17512,858,81713,548,82414,433,02214,958,42915,590,59316,390,32016,795,29517,247,62717,703,78817,827,747
Net assets35,920,64238,474,42640,641,23144,228,75545,303,83347,448,81650,887,22152,091,27254,489,77358,084,04859,386,073
Contributed equity26,728,53826,728,53826,728,53826,728,53826,728,53826,728,53826,728,53826,728,53826,728,53826,728,53826,728,538
Accumulated funds1,156,7442,263,6413,238,3004,338,6365,399,3156,400,5237,629,8298,852,30210,020,04011,219,13312,499,461
Total equity35,920,64238,474,42640,641,23144,228,75545,303,83347,448,81650,887,22152,091,27254,489,77358,084,04859,386,073

Prospective Statement of Cash Flows

Auckland Council group consolidated


Financial year ending 30 June

Annual Plan 2017/18LTP 2018/19LTP 2019/20LTP 2020/21LTP 2021/22LTP 2022/23LTP 2023/24LTP 2024/25LTP 2025/26LTP 2026/27LTP 2027/28
Cash flows from operating activities           
Receipts from rates revenue1,710,0041,796,7301,877,7461,965,2372,067,6672,174,1552,285,2952,401,0162,523,7832,652,2082,786,186
Receipts from customers and other services2,391,7622,646,2572,913,1533,036,1963,112,8313,166,3483,335,2613,443,0483,449,9243,588,0873,724,121
Interest received8,17112,69812,99812,96712,86212,68912,62512,60912,68012,69412,699
Dividends received59,80560,96360,96360,46360,46362,20263,99365,83867,73869,69571,711
Payments to suppliers and employees(2,380,242)(2,575,718)(2,732,737)(2,820,329)(2,845,049)(2,910,682)(2,969,565)(3,083,268)(3,184,852)(3,277,702)(3,361,991)
Income tax paid(7,763)0000000000
Interest paid(457,207)(467,773)(514,084)(562,711)(594,340)(611,484)(630,600)(643,056)(660,263)(675,600)(685,457)
Net cash inflow from operating activities1,324,5301,473,1571,618,0391,691,8231,814,4341,893,2282,097,0092,196,1872,209,0102,369,3822,547,269
Cash flows from investing activities           
Sale of property, plant and equipment, investment property and intangible assets114,505177,000104,00071,000174,00065,00043,00040,00057,00064,00039,000
Purchase of property, plant and equipment, investment property and intangible assets(2,016,720)(2,129,427)(2,163,164)(2,112,858)(2,136,977)(2,194,698)(2,514,027)(2,670,324)(2,670,563)(2,627,632)(2,638,240)
Acquisition of other financial assets(6,497)(4,011)(3,168)(2,960)(2,084)(2,362)(1,922)(1,070)(1,890)(1,117)(716)
Proceeds from sale of other financial assets236,4011,0211,0881,0271,1211,1541,2121,2831,3701,4811,615
Investment in associates and joint ventures0(234,700)(254,100)(359,100)(333,900)(303,500)(74,300)131,400000
Advances of loans to external parties(8,876)(49,962)(10,162)(6,000)(7,000)(7,000)(7,000)(7,000)(7,000)(7,000)(7,000)
Proceeds from community loan repayments2,3502,3883,8404,7765,4515,3475,2304,9384,7744,4244,517
Net cash outflow from investing activities(1,678,837)(2,237,691)(2,321,666)(2,404,115)(2,299,389)(2,436,059)(2,547,807)(2,500,773)(2,616,309)(2,565,844)(2,600,824)
Cash flows from financing activities           
Proceeds from borrowings1,965,9611,772,6821,956,1622,060,1981,929,4062,053,0172,034,5571,949,4472,093,4461,937,8161,821,536
Repayment of borrowings(1,611,654)(1,181,148)(1,252,535)(1,347,906)(1,444,451)(1,510,186)(1,583,759)(1,644,861)(1,686,147)(1,741,354)(1,767,981)
Net cash inflow from financing activities354,307591,534703,627712,292484,955542,831450,798304,586407,299196,46253,555
Net increase/(decrease) in cash and cash equivalents and bank overdrafts0(173,000)000000000
Opening cash and cash equivalents and bank overdrafts240,000373,000200,000200,000200,000200,000200,000200,000200,000200,000200,000
Closing cash and cash equivalents and bank overdrafts240,000200,000200,000200,000200,000200,000200,000200,000200,000200,000200,000

Notes to the prospective financial statements

Note 1: Statement of significant accounting policies

Auckland Council (the council) is a local authority domiciled in New Zealand and governed by the Local Government Act 2002 (LGA 2002), the Local Government (Auckland Council) Act 2009 (LGACA 2009) and Local Government (Rating) Act 2002. The council is a FMC Reporting entity under the Financial Markets Conducts Act (FMCA) 2013. The council's principal address is 135 Albert Street, Auckland Central, New Zealand.

Financial information within this 10-year budget is prepared and disclosed on a full group basis (except where specifically stated otherwise). The Auckland Council Group (the Group) consists of the council, its Council Controlled Organisations (CCOs), associates and joint ventures. A summary of substantive CCOs is provided in the table below[3]. All entities are domiciled in New Zealand. The council considers that presenting group information enhances transparency of information about cost of services provided to Auckland ratepayers and enables ratepayers to make more informed decisions about the impact of delivering the Auckland Plan.

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

The Group and council have a balance date of 30 June and these prospective financial statements are for the period from 1 July 2018 to 30 June 2028. 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 Group and council do not intend to update the prospective financial statements after publication. 

The substantive CCOs within the Group comprise the following:
NamePrincipal activity and nature of relationship where there is no direct ownershipPercentage ownership %
Percentage ownership %
Auckland Transport

Owns the public transport network and manages the transport infrastructure and services in Auckland.

*Auckland Transport is a body corporate with perpetual succession and is treated under the LGACA 2009 as if the council is its sole shareholder.

Auckland Tourism, Events and Economic Development LimitedManages projects for economic development, tourism and events promotion in the Auckland region.100100
Panuku Development Auckland LimitedFacilitates the redevelopment of urban locations. Contributes to accommodating residential and commercial growth. Optimises the council's property portfolio. Continues to lead the development of the Auckland waterfront.100100
Regional Facilities Auckland (RFA)

Supports and promotes the engagement of the Auckland community in arts, culture, heritage, leisure, sports and entertainment activities and develops, owns and manages the venues for these activities.

*Regional Facilities Auckland is a charitable trust of which Regional Facilities Auckland Ltd, a 100% owned subsidiary of the council, is the sole trustee.

Watercare Services Limited (Watercare)

Owns and manages the Auckland region's water and wastewater assets.

Watercare is restricted by LGACA 2009 section 57(1)(b) from paying any dividend or distributing any surplus directly or indirectly to the council.


These consolidated prospective financial statements are prepared:

  • For the purposes of meeting the Group and council's requirements under the LGA 2002, the LGACA 2009 and the Local Government (Financial Reporting and Prudence) Regulations 2014;
  • in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP), and comply with PBE Accounting Standards. In particular, these prospective financial statements have been prepared in accordance with PBE Financial Reporting Standard 42: Prospective Financial Statements;
  • on a going concern basis and the accounting policies have been applied consistently throughout the planned period;
  • on a historical cost basis with the exception of certain items identified in specific accounting policies below; and,
  • in New Zealand dollars (NZD) and are rounded to the nearest thousand dollars, unless otherwise stated.

This information may not be suitable for use in any other context.

These consolidated prospective financial statements were adopted by the governing body of Auckland Council on 28 June 2018.

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

All items in the financial statements are stated exclusive of Goods and Services Tax (GST), except for receivables and payables, which include GST invoiced.


The Annual Plan 2017/2018 adopted by the council on 30 June 2017 has been provided as a comparator for these consolidated prospective financial statements. The closing balance in this comparative differs from the opening position used to prepare these consolidated prospective financial statements which is based on the most up-to-date forecast information.

The prospective consolidated financial statements include the forecasts of the council and its subsidiaries which are added on a line-by-line basis adding together like items. Transactions and balances between the council and its CCOs are eliminated on consolidation. Investments in subsidiaries are carried at cost less any accumulated impairment. Where necessary, adjustments are made to the financial information of subsidiaries, associates and joint ventures to bring their accounting policies in line with the Group.


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

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

Refer to note 2 for significant forecasting assumptions.


PBE International Financial Reporting Standard (IFRS) 9 Financial Instruments is effective from periods beginning on or after 1 January 2021.  PBE IFRS 9 addresses the classification, measurement and recognition of financial assets and financial liabilities and relaxes current requirements for hedge accounting. The Group and the council intend to early adopt the standard when it becomes effective for for-profit entities from period beginning on 1 July 2018.

The Group and the council have determined that adopting PBE IFRS 9 does not materially impact the financial instruments of the Group and the council, except for the borrower notes of the Group and the council which will be accounted for at fair value through surplus or deficit. For the purposes of this 10-year plan we have not budgeted for any fair value gains of losses on financial instruments.

The five new standards, PBE IPSAS 34 Separate Financial Statements, PBE IPSAS 35 Consolidated Financial Statements, PBE IPSAS 36 Investment in Associates and Joint Ventures, PBE IPSAS 37 Joint Arrangements and PBE IPSAS 38 Disclosure of Interests in Other Entities, are effective from periods beginning on or after 1 January 2019. The Group and the council are yet to assess the impact of these new standards, although the impact is unlikely to be material.

All other standards, interpretations and amendments approved but not yet effective in the current year are either not applicable to the Group and the council or are not expected to have a material impact on the financial statements of the Group and the council and, therefore, have not been disclosed.

Prospective statement of comprehensive revenue and expenditure

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

TypeRecognition & measurement
RatesIn full at point of issuance of the ratings notice and measured at the amount assessed, which is the fair value of the cash received or receivable.
Grants and subsidiesWhen they become receivable unless there is an obligation in substance to return the funds. If there is such an obligation, the grants are initially recorded at fair value as grants received in advance and recognised as revenue when conditions of the grant are satisfied.
Development contributionsWhen the council is capable of providing the service for which the contribution was levied.
Financial contributionsWhen they are expended on the activity for which the contribution was levied.
Vested assets1When control of the asset is transferred to the Group at its fair value.
Fines and infringementsWhen the infringement notice is issued.
Finance revenue2Using the effective interest method.
Dividend revenueWhen the Group's right to receive the dividend is established.
Regional fuel taxWhen it becomes receivable.
Fees and user charges 
Water and wastewaterWhen invoiced or accrued in the case of unbilled services at fair value of cash received or receivable.
Sale of goodsWhen the substantial risks and rewards of ownership have been passed to the buyer.
Sale of servicesOn a percentage of completion basis over the period of the service supplied.
Port operationsIn the period the services are rendered, by reference to the percentage of completion of the specific transaction.
ConsentsBy reference to the percentage of completion of the transaction at balance date based on the actual service rendered
Licences and permitsOn receipt of application as these are non-refundable.

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

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

Employee benefitsEmployee entitlements for salaries and wages, annual leave, long service leave and other similar benefit are recognised as an expense and liability when they accrue to employees.
Grants, contributions and sponsorship expenseWhere grants and subsidies are discretionary, the expense is recognised when the Group has advised its decision to pay and when conditions, if any, are satisfied. Non-discretionary grants are recognised on receipt of application that meets the specified criteria.
Finance CostsFinance costs include interest expense, the unwinding of discounts on provisions and financial assets; and net realised losses on the early close-out of derivatives. Interest expense is recognised using the effective interest rate method. Interest expense includes the amortisation of borrowing costs recognised over the borrowing term.
Income tax

The Group and the council are exempt from income tax under the Income Tax Act 2007 except for certain income received from CCOs and port-related earnings.

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

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

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

Operating Leases


The Group and the council lease property, plant and equipment from third parties in the normal course of business with lease terms varying from 1 month to 70 years. Payments made under operating leases (net of any incentives received from the lessor) are expensed on a straight-line basis over the lease term.


The Group and the council lease certain property, plant and equipment to third parties including land and buildings and some commercial and residential property. The leases have non-cancellable periods ranging from 1 month to 100 years with subsequent renewals negotiated with the lessee. Rental revenue (net of any incentives given to lessees) is recognised as income on a straight-line basis over the lease term.


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

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

Provision for impairment of receivables

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

Derivative financial instruments

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

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

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

Other financial assets

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

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

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

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

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

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

Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. They are measured at the lower of their carrying amount and fair value less costs to sell.

Any impairment losses for write-downs are recognised in the surplus or deficit.

Any increases in fair value (less costs to sell) are recognised up to the level of any impairment losses that have been previously recognised.

Non-current assets are not depreciated or amortised while they are classified as held for sale.

Property, plant and equipment

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

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

Initial recognition and subsequent measurement

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


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


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

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

Asset classEstimated useful life (years)Revaluation method
LandIndefiniteCost less accumulated impairment losses
Roads10-120Depreciated replacement cost
Water and wastewater3-200Depreciated replacement cost
Machinery3-200Depreciated replacement cost
Stormwater10-200Depreciated replacement cost
Other infrastructure10-120Depreciated replacement cost
Land and buildings

Land - Indefinite

Buildings -1-101

Market value based on recent equivalent sales information.

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

Marina structures40-100Depreciated replacement cost and cash flow method
Train stations5-99Depreciated replacement cost
Bus stations and shelters10-99Depreciated replacement cost
Works of artIndefiniteFair value
Rolling stock2-35Depreciated replacement cost
Wharves2-100Depreciated replacement cost
Cultural and heritage assetsvariousDeemed cost less accumulated impairment losses
Other operational 1-100Cost less accumulated depreciation and impairment losses
Parks and reservesIndefiniteFair value
Improvements3-100Cost less accumulated depreciation and impairment losses
Buildings5-90Depreciated replacement cost


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

Service concession assets

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

Intangible assets

Initial recognition and subsequent measurement

Purchased intangible assets are initially recognised at cost. For internally generated intangible assets the cost includes direct employee costs, a reasonable portion of overhead and other direct costs that are incurred within the development phase of the asset only. Intangible assets acquired at no cost are initially recognised at fair value where that can be reliably measured. Intangible assets are reviewed at least annually to determine if there is any indication of impairment. After initial recognition intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses.


Amortisation is provided on intangible assets, except rights to acquire, and is calculated to write down the cost of the assets on a straight-line basis over the estimated useful economic life.

Asset classEstimated useful life (years)Subsequent measurement
Computer software1-15Cost less accumulated amortisation and impairment
Intellectual property4-35Cost less accumulated amortisation and impairment
Other intangible assets1-63Cost less accumulated amortisation and impairment


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

Investment propertyInvestment property includes land, commercial buildings and water space licences held to generate income. Investment property is initially recognised at cost and subsequently measured at fair value, determined annually by an independent registered valuer. Gains or losses arising from fair value changes are included in surplus or deficit. Investment properties are valued individually and not depreciated.
Investment in other entitiesInvestment in associates and joint ventures is accounted for using the equity method in the Group and council financial statements. The investment is initially recognised at cost and the carrying amount is increased or decreased to recognise the share of the surplus or deficit of the associate or joint venture after the date of acquisition. Distributions received reduce the carrying amount of the investment. Where necessary, adjustments are made to the financial statements of associates and joint ventures to bring their accounting policies in line with the Group.
Asset impairment

Impairment of property, plant and equipment and intangible assets

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

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

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

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

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

Impairment of financial assets

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

Payables and accrualsCurrent payables and accruals are recognised at cost, are non-interest bearing and normally settled on 30-day terms; therefore the carrying value approximates fair value. Non-current payables and accruals are measured at the present value of the estimated future cash outflows.
Employee entitlementsEmployee 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.
BorrowingsBorrowings are initially recognised at face value plus transaction costs and are subsequently measured at amortised cost using the effective interest rate method.

Provisions are recognised in the statement of financial position only where the Group has a present legal or constructive obligation as a result of past event, it is probable that an outflow of resources will be required to settle the obligation and the amount can be estimated reliably.

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 cost in surplus or deficit.

Ratepayer equityRatepayer equity is the Auckland community's interest in the Group. Ratepayer equity has been classified into various components to identify those portions of equity held for specific purposes. Contributed equity is the net asset and liability position excluding restricted reserves at the time the council was formed.
Other policies
Foreign currency transactionsForeign currency transactions are translated into NZD using the spot rate at the balance date. Foreign exchange gains and losses resulting from the settlement of such transactions and from translation, using the exchange rates at balance date, of monetary assets and liabilities denominated in foreign currencies are recognised in surplus or deficit.


AssumptionAssumption data for LTP 2018-2028 and sourceRisks and impacts
Population and development growth (including growth in the rating base)

Population growth and the consequential demand for residential housing is a key driver for many of the council's activities and asset management plans (for example the number and type of community facilities the council provides).

For this Long-term Plan 2018-2028, the council has used the 2013 census (updated February 2017) population growth data to estimate the population growth in the future. The council has estimated that the population will increase by around 292,530 people (17.7 per cent) by 30 June 2028.

The population projections are used to forecast the level and location of development growth (the number of dwellings and floor space area). This information is key driver for some of the council's activities such managing the stormwater from developed properties.

Growth in the rating base is driven by property development, including new building and subdivision, which increases the size of the rating base over which the rates requirement is spread. The council adjusts this for prudence and timing lag and uses this projection as an indicative adjustment to the total nominal rates increase to provide an indication of the average rates increase to existing ratepayers.


Risk - Growth differs significantly from forecasted

Level of uncertainty - Moderate

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

Population and development growth is affected by a range of external factors, most of which are outside the council's control or influence. The council will continue to monitor growth on an annual basis. If there is a significant change, appropriate amendments will be made as part of subsequent annual plan or long-term processes. Depending on infrastructure contracts, the council may be able to reduce or delay some of the capital expenditure to cater for growth.

Growth in the rating base has no financial impact on the total rates requirement. Lower than anticipated growth in the rating base would result in slightly higher average rates increases for existing ratepayers than forecast over the period of this plan, due to a lower than expected rating base over which to spread the rates requirement. Conversely higher growth in the rating base would result in slightly lower average rates increases than forecast.



Business floor space (sq meters)31,897,47132,475,72333,053,97533,632,22734,112,13234,592,03835,071,94435,551,84936,031,75536,502,91036,974,065
Separately used or inhabited part (SUIP) rateable properties601,530612,959624,912637,410649,903662,381674,967687,791700,859713,895726,888
Rating units (rateable properties)538,899549,138559,846571,043582,236593,415604,689616,179627,886639,565651,205
Growth in the rating base (GIRB)1.87%2.55%2.44%2.38%2.33%2.28%1.68%1.66%1.63%1.58%1.54%
Adjusted GIRB for revenue modelling1.69%1.90%1.95%2.00%1.96%1.92%1.90%1.90%1.90%1.86%1.82%


Economic growth and return on investments


Employment numbers and gross domestic product indicate how well the region's economy is doing.

How well the economy is doing could influence the council's return on its investments:

  • 22.35 per cent shareholding in Auckland International Airport Limited
  • 100 per cent shareholding in Ports of Auckland.

Dividends are forecast based on market analyst three year forecasts extrapolated for the 10 years of this plan.

Risk - That economic growth differs significantly from that forecasted in this plan

Level of uncertainty - moderate

Impacts - 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 the 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. The economic outlook also affects local businesses, the region's level of employment and the rate of development.

Note: Council does not use economic growth as an underlying assumption in developing the LTP financials. Economic growth is considered in the population and GIRB rates that REMU calculates.

Development contribution revenue

Auckland Council's Financial Strategy and Revenue and Financing Policy state that growth-related infrastructure investment should be funded from development contributions. Given population growth is a key focus of this 10-year Budget it includes significant growth-related capital spend.

The council is currently working to replace its Development Contribution Policy to enable the fair recovery of this investment. We expect this will be completed by September 2018.

For this plan we are assuming development contribution levels that enable the recovery of the growth-related infrastructure investment over the relevant growth units and the projected period these growth units are constructed.

Risk - that development growth occurs at a different pace than projected or the new Development Contribution Policy does not enable a fair recovery of growth costs.

Level of uncertainty - moderate for pace of growth and low for the policy.

Impacts - If development occurs more slowly than projected, the recovery period will be extended and the expenditure will need to be funded from borrowing. It may also be that the capital programme needs to be slowed.

If development occurs earlier than projected revenue levels will increase, and the capital programme may need to be accelerated to support the development.

If for any reason the new Development Contribution Policy does not enable a fair recovery of growth costs as per the Revenue and Financing Policy development contribution revenue will be lower than forecast. This may require a reduction in capital expenditure to remain within the council's prudential debt limits. The difference between the current and likely proposed new policy is estimated to have a revenue impact of approximately $4 million per month.


Development contribution revenue204289307298301301301301296293




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

Risk - Actual inflation is different from forecast inflation

Level of uncertainty - Moderate

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

The council will continue to monitor price movements on an annual basis and any significant changes will be addressed in subsequent annual plans or long-term plans.

Capital expenditure4.0%4.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%
Operating expenditure          
Staff costs1.7%2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0%


Interest rates


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

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

The council has assumed that it maintains its AA credit rating in preparing the interest rate projections. The following average interest rates have been assumed in this plan:


Risk - Prevailing interest rates differ significantly from forecasted

Level of uncertainty - moderate

Impacts - For every one notch change from the current credit rating we would expect a change in interest rates of between 0.05 per cent and 0.15 per cent per annum. Increases in interest rates flow through to higher debt servicing costs and higher rates funding requirements. The council's treasury group has mitigated these risks with a prudent hedging programme. For every 100 basis point (1.0 per cent) change in the council's average interest rate, the council's debt servicing costs would change by approximately $88 million to $127 million per annum dependent upon the amount of debt outstanding and the level of hedging in place.

Average interest rates20182019202020212022202320242025202620272028
Cash holdings3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%


Note 2: Significant forecasting assumptions

The level of uncertainty for each assumption refers to the difficulty of predicting outcomes because of limited or inexact knowledge. Council cannot control all of the variables that affect future outcomes, such as the wider economy and changes in legislation.

  • Low level of uncertainty - information available to council point to a high likelihood of the assumption being accurate and/ or most of the variables are under council's control.
  • Moderate level of uncertainty - council has most of the information available on the assumption but variables outside of council's control may still affect the accuracy of the assumption.
  • High level of uncertainty - council has some of the information on the assumption but there is a high likelihood that variables outside of council's control will impact on the accuracy of the assumption.
AssumptionAssumption data for LTP 2018-2028 and sourceRisks and impacts
Crown Infrastructure Partners

On 24 July 2017 the government announced the renaming and repurposing of Crown Fibre Holdings to Crown Infrastructure Partners (CIP).  This company was tasked with working alongside the private sector to invest in infrastructure to support new housing developments.

The first areas to be assessed by CIP for investment were Wainui in Auckland's north and areas in Auckland's south including Paerata, Pukekohe, Drury West and Drury South.

The government announcement in July 2017 identified $201 million of investment required in the north that could provide capacity for 5500 houses and $387 million in the south that could provide 17800 more houses (total $588 million).

For this plan we have assumed that CIP will proceed with investing in $364 million of transport infrastructure and $224 million of water  infrastructure, primarily in Wainui and Auckland's south. Given the nature of the assets, being network infrastructure, we then assume that these assets are vested in the Auckland Council group as development projects are completed and the council is responsible for ongoing maintenance and renewals. Some of these assets may vest after 2028.


  • That the Crown remove their support for CIP
  • That CIP does not invest in the specified infrastructure

Level of uncertainty - Moderate

Impacts - If CIP does not invest in the two identified areas Auckland Council would need to incorporate the projects into its capital investment prioritisation process. Given the constrained funding environment this could result in either a delay to the enabling of housing development in these areas or other projects being delayed to provide capacity for their delivery.

Housing Infrastructure Fund

In July of 2016 the government announced the creation of a Housing Infrastructure Fund (HIF). The aim of the fund was to provide financing capacity for growth councils to deliver the infrastructure needed to support their growth.

Auckland Council submitted an application to this fund in March 2017 and was notified in July 2017 that $300 million of investment was supported in principle.  Subsequent negotiations with central government, NZTA and developers have advanced our understanding of how this will work.

For this plan we have assumed that the financing for transport projects is provided by way of an adjustment to subsidy levels ($80m) and for other projects via an interest-free loan from the crown of $120m, repaid during the period of this plan.

Risk - That the funding arrangement is not completed between Auckland Council Group and the relevant crown agencies.

Level of uncertainty - Moderate

Impacts - Given the HIF effectively provides favourable terms for financing infrastructure investment if the arrangement does not go ahead the impact would be a reduction in the council's overall capacity to invest.  This would reduce the amount of new infrastructure we could provide for Auckland, particularly in the earlier years of the plan.

Government transport funding

The Auckland Transport Alignment Project (ATAP) was established in 2015 to improve local and central government collaboration on transport planning and funding for Auckland. The revision of the ATAP work was commenced earlier this year and a final report released by the Minister of Transport and the Mayor of Auckland on 26 April 2018.

The ATAP 2018 report included a $28 billion funded programme of investment in transport activities for Auckland. The ATAP programme of work is to be carried out by multiple parties. The $28 billion in ATAP includes a $16.5 billion package for Auckland Transport, split between $10 billion capital expenditure and $6.5 billion operating expenditure.

A key source of funding for transport activities is the National Land Transport Fund. This is administered by the New Zealand Transport Agency (NZTA) and both directly funds NZTA investment in state highways and co-funds councils' investment in other activities.

The ATAP report included NLTF funding of $16.3 billion of which $8.1 billion is to support the activities of Auckland Transport (both capital and operating expenditure).

This level of support is significantly higher than has been historically provided to local government in Auckland, and than would be provided under existing funding arrangements. The report identified that delivery "would require changes to current funding arrangements, including a more flexible approach to GPS activity class limits, and funding assistance rates (FARs)." To advance this it identified areas for further work including "considering what changes may be required to transport planning and funding processes and project evaluation tools to achieve the Government and Council's direction for transport in Auckland."

Subsidy levels for different activity classes can vary and are set by the NZTA. Individual projects are assessed for subsidy through a business case process.

For this plan we are assuming the funding will be made up of $3.1 billion of operating subsidies and $5 billion of capital subsidies.


The statutory processes (such as the final GPS) do not provide for funding at a level that would allow Auckland Transport to solicit the full $8.1 billion

NZTA assessment of individual projects does not result in funding being granted

Level of uncertainty


Cabinet approval of the ATAP report indicates government intentions to provide the level of funding to Auckland through the GPS and the NZTA's close involvement in the ATAP process indicates that the projects are supported for co-funding


If the capital contribution level is lower than assumed, then transport capital expenditure would be less than projected. Conversely, if the level of capital contribution is higher than assumed this would enable an increase in transport capital expenditure.

If the level of operating subsidy available increases this would reduce the amount of rates funding required for OPEX and free up this funding to invest in additional infrastructure or services. A reduction may necessitate reduced services or investment, or additional funding from another source such as increased borrowing or rates

Regional Fuel Tax

One of the new funding sources introduced in this 10-year Budget is a regional fuel tax (RFT) to support investment in additional transport infrastructure and services.

The tax will be set at 10 cents plus GST per litre of fuel (both petrol and diesel), with appropriate rebates for non-transport and off-road uses.

Our projections of annual revenue are approximately $150 million.

Risk -that the revenue received does not match projections.

Level of uncertainty - Moderate

Impacts - If revenue is less than projected the council could choose to either reduce the investment in transport projects or look to fund the projects from other sources

If the revenue is greater than projected the additional funds will be managed through a reserve fund and may require an amendment to the RFT scheme to allow for additional projects

Revaluation of PPE and investments


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.

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

Level of uncertainty - Moderate

Impact - 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.



AssumptionAssumption data for LTP 2018-2028 and sourceRisks and impacts
Timing of capital expenditure

This 10-year budget has been developed on the basis of the best available information on the likely timing of capital projects and programmes.

Over the 10 years of the plan Auckland Council is forecasting $26.2 billion of capital investment. The $26.2 billion includes $12 billion on transport, $7.1 billion on water networks and $7.1 billion across other council activities. This is a significant programme of work with complex inter-relationships with other agencies and the Crown that could impact on delivery timings. There are also constraints on the group's overall capacity for capex delivery and constraints within the construction market, particularly in the short term.

The certainty of funding for this programme (particularly through the ATAP agreement) is likely to give greater confidence to the market to invest and may encourage new players to enter the market. This is likely to result in increased capacity for programme delivery over time.

Based on this gradual increase in delivery capacity we have made a central assumption that while all projects will be delivered over the next decade not all capital expenditure will be delivered in the specific financial years set out in the Group of Activities statements. The assumed timing change is phased as follows:

Risk - That the actual timing of the capital programme is different from that forecasted.

Level of uncertainty - moderate

Impact - Delivery of capital expenditure to a different time frame than projected would have both a financial impact and could impact the timing of when the proposed level of service improvements would be achieved.

The financial implications would depend on the planned funding sources for the relevant capital expenditure and its associated expenses. The financial impact would be on funding requirements, borrowings, interest expense, depreciation expense and consequential operating expenditure.

The actual timing of capital expenditure (and the achievement of related service level improvements) will be impacted by a number of factors. One of the key areas under the control of council is the quality of project management. Other areas such as the market's response to the increased programme certainty are beyond the control of the council.





Asset sales


Auckland Council plans disposal of certain non-strategic assets over the next 10 years. These are primarily land and buildings which are not needed for providing the council services, not providing a market rental income, are poorly utilised or simply located in the wrong place. Council also plans to dispose of property assets as part of its property and urban development activities (including Panuku's Unlock and Transform programmes).

The council has adjusted these targets for prudence and used lower forecasts when projecting debt and interest costs.

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

Level of uncertainty - moderate

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

General disposals24242420202020202020
Sale of specific urban development assets1538281931615132514
Unlock and transform disposals1384219135427524195


Useful lives of assets


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

The useful life is used to determine the timing of renewing the asset and the level of depreciation for the asset.

Risk - Assets wear out and need to be replaced earlier than estimated.

Level of uncertainty - low

Impact - Depreciation costs would change with updated information about the remaining useful life of an asset 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.


AssumptionAssumption data for LTP 2018-2028 and sourceRisks and impacts
Sources of funding of replacements (including depreciation funding)

The council believes it is financially prudent and fair to fully fund depreciation so that each generation pays for the assets it uses. This funded depreciation provides funding for replacement of assets.

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, there are some exceptions to this assumption, namely

  • Watercare Services Limited will continue to fund depreciation to meet forecast average renewal requirements
  • Waterfront Development Agency's commercial operations will fund its depreciation from debt and commercial revenue.
  • Ports of Auckland will fully fund their depreciation from commercial revenues.

For other activities the council will fund 78 per cent of depreciation, net of subsidies and contributions, for 2018/2019. The level of depreciation funding will increase by around 3.7 per cent each year, so it is fully funding depreciation in 2024/2025, net of subsidies and contributions.

The table below sets out the minimum level of depreciation funding the council will apply when calculating its rates requirement.

The council receives some subsidies for renewing assets such as the NZTA subsidy for renewing some roads. The council uses a number of other funding sources to pay for the renewal of its assets such as general rates, targeted rates and user charges.

The council's Revenue and financing policy has more details of the different types of funding used to pay for renewing assets.

Risk - That the actual level of depreciation differs significantly from that forecasted in this plan.

That funded depreciation is not sufficient to fund renewals.

Level of uncertainty - low

Impacts - If depreciation is lower than that forecast the council could choose to fund a higher proportion of depreciation expense than forecast allowing it to reduce debt or increase other expenditure.

If depreciation is higher than that forecast the council will fund less depreciation than forecast requiring it to increase debt/and or rates or reduce other expenditure.

The plan includes $12 billion depreciation, $953 million of this in 2018/2019. A 1 per cent change in depreciation in 2018/2019 equates to $9.5 million.

Funding percentage20182019202020212022202320242025202620272028
Not funded26%22%19%15%11%7%4%0%0%0%0%


Weathertightness claims


The council has considered the financial impact of weathertightness claims, including those already lodged and potential claims.

On the basis of an actuarial assessment, a provision was established at 1 November 2010 for future weathertightness claims. Based on an updated assessment completed in December 2017, the council is forecasting claim payments of $296 million over the period of this plan.

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.

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

Level of uncertainty - low

Impact - 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. Depending on how large the variance is, it may affect future forecast rate requirements.

Climate change

Climate change is expected to have a variety of implications for Auckland's infrastructure networks. The most recent climate change projections indicate warming temperatures, less annual rainfall in the north but more in the south and stronger winds. More frequent and severe weather events are expected. The specifications of some infrastructure may no longer be adequate to deal with more rainfall, or a warmer climate. Sea-level rise will increase risks for assets on the coast from inundation and erosion.

Council is responding to the risk of climate change by increasing knowledge of risks to infrastructure networks, such as developing a Natural Hazards Risk Management Action Plan and undertaking new research on the impact of climate change on Auckland.

An Auckland Council Coastal Management Framework was developed to help the council better manage its coastal assets, and to better mitigate the risks associated with coastal erosion and the combined effects of predicted climate change. This framework will enable the council to move from the current default position of reactionary 'like-for-like' renewals to a prioritised work programme that is based on improved asset management planning underpinned by business cases leading to improved asset investment.

Risk - If the impact of climate change is higher than anticipated there may be increased surface flooding, damage to infrastructure due to extreme weather events and greater risk to public safety and private property.

Level of uncertainty - moderate

Impact -Increased investment in new or improved infrastructure may be required and the timing of maintenance and replacement of assets may be affected.

Foreign exchange riskCouncil manages foreign currency risk of the group apart from Ports of Auckland. Foreign exchange risk of all entities under the group is managed through derivative financial instruments. The risk is mitigated by entering into forward foreign currency exchange contracts where the threshold is set by the treasury management policies. The risk on offshore borrowings is offset by cross-currency interest rate swaps over the life of the borrowings. The group and council are not planning to have any material exposure to foreign exchange as all foreign currency denominated borrowings and material purchases will be hedged.

Risk - That group and council transactions that are denominated in a foreign currency other than NZD. The NZD may deteriorate against the relevant foreign currency from the period between when the transaction was entered and when foreign currency payments are made.

Level of uncertainty - low

Impact - The group and council are not planning to have any material exposure to foreign exchange as all foreign currency denominated borrowings and material purchases will be hedged.



The council has assumed there will be no material changes to existing legislation and other national standards applicable to Auckland Council, other than an assumption that central government will pass legislation to enable the establishment of regional fuel tax schemes, as well as an Order in Council to implement the regional fuel tax scheme for Auckland and allow the collection of a regional fuel tax from 1 July 2018 (refer to assumption on fuel tax revenue earlier in this section).

Risk - New legislation or changes to existing legislation may alter the nature and scope of services currently being provided or the regional fuel tax legislation is not passed as expected or the Order in Council is delayed.

Level of uncertainty - low

Impact - If changes in legislation require the council's 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 rates. It is not possible to quantify the potential financial impact of such changes at this time. If the legislation and the Order in Council for Auckland are not passed to allow the collection of a regional fuel tax from 1 July 2018 then the council will receive less fuel tax revenue than forecast. While a short delay would not be material, a significant delay may require council to defer some transport projects.


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

This statement is prepared on a group basis.  This statement should be read in conjunction with the Prospective Funding Impact Statement (group consolidated).


Financial year ending 30 June

Annual Plan


LTP 2018/19LTP 2019/20LTP 2020/21LTP 2021/22LTP 2022/23LTP 2023/24LTP 2024/25LTP 2025/26LTP 2026/27LTP 2027/28
Operating surplus/ (deficit) after income tax per Prospective Statement of comprehensive revenue567,751781,647941,0651,083,7971,075,0781,000,0851,221,9861,204,0511,149,4511,221,0031,302,025
Items recognised as income in Statement of comprehensive revenue and as capital expenditure funding sources in Funding Impact Statement:           
Capital subsidies(403,083)(411,868)(486,708)(475,319)(471,166)(430,840)(552,107)(561,019)(511,656)(580,785)(631,385)
Development contributions(214,359)(204,492)(288,657)(306,698)(297,514)(301,301)(301,301)(301,301)(301,301)(295,771)(293,223)
Non-cash items recognised in Statement of comprehensive revenue and not included in Funding Impact Statement:           
Depreciation of make good provision added back in funding impact statement(2,211)(559)(425)(323)(104)(12)(8)(5)000
Discounting of provisions9,8066,2473,8252,7811,768863325200151149149
Recognition of revenue from vested assets(201,594)(284,486)(269,609)(375,122)(364,322)(319,355)(395,611)(352,962)(327,878)(318,834)(330,923)
Amortisation of prepaid leases(1,000)(687)(687)(687)(1,027)(1,029)(1,025)(1,025)(1,025)(1,025)(1,025)
Other reconciling items:           
Retro-fit your home targeted rate included in funding impact statement but not recognised as revenue in the statement of comprehensive income4,7064,2726,2647,1067,7047,5647,4317,1306,9736,6436,767
Retro-fit your home targeted rate interest component recognised as revenue in the statement of comprehensive income(2,356)(1,884)(2,424)(2,330)(2,254)(2,217)(2,201)(2,192)(2,199)(2,219)(2,250)
Share of equity accounted surplus  from associates not distributed by way of dividends to Auckland Council(4,644)(6,456)(7,007)(9,236)(11,831)(7,515)(4,674)(4,793)(5,114)(5,404)(5,731)
Prepaid lease revenue recognised in funding impact statement18,01512,27516,8369,55613,31226,06110,64024,31806,7310
Income tax recognised in statement of comprehensive revenue not included in the funding impact statement23,06234,64338,68040,26441,52244,18146,70840,20742,03645,58549,185
Operating funding surplus/ (deficit) per Prospective Funding Impact Statement719,684882,113950,1961,011,3671,098,3461,181,4541,244,4481,349,7381,420,5721,528,1881,647,850
Auckland Council group
Note 4: Reserve Funds

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

Cash flow hedge reserve Gains from revaluation of the Diversified Financial Assets portfolio Organisational support
Available-for-sale investment revaluation reserve Recognition in group accounts of associated' reserves Organisational support
Share of associates' reserves Accumulated gains from asset revaluation Investment
Asset revaluation reserve Accumulated gains from asset revaluation Various
Cash flow hedge reserve Gains from revaluation of the Diversified Financial Assets portfolio Organisational support
Restricted equity reserves  
Statutory funds (Off street parking)Funds accumulated under legislation (primarily related to subdivisions or off-street parking). Parking and enforcement
Trust and bequestsThese trusts are primarily related to assets held by council. The trust deeds restrict council's action in relation to these assets. Various
Regional fuel tax reserveFuel tax collected for specific transport projects.

Roads and footpaths and

Public transport and travel demand management

Other restricted equityReserve funds related to particular projects or assets whereby council is restricted in its decision-making ability. Various
Targeted rates reserves  
Central City targeted rate reserveTargeted rate collected for enhancement of central business district as a place to work, live, visit and do business. Regional planning
Glorit Flood Gate Restoration targeted rate reserveTargeted rate being collected to recover the costs of the restoration of the Glorit flood gate. Stormwater management
Riverhaven Drive targeted rate reserveTargeted rate being collected to recover the costs of the construction of a road. Roads and footpaths
Jackson Crescent wastewater targeted rate reserveTargeted rate collected to recover the cost of the council providing financial assistance to connect to a wastewater scheme. Wastewater treatment and disposal
Point Wells wastewater targeted rate reserveTargeted rate collected to recover the cost of the council providing financial assistance to connect to a wastewater scheme. Wastewater treatment and disposal
Harbourview Orangihina Park targeted rate reserveTargeted rate collected for development of Harbourview Orangihina Park. Regional community services
Open space/ Volcanic conesLegacy targeted rates. No longer levied. Regional community services
ArapareraAraparera Forest harvest proceeds set aside for roading development in the area. Development Auckland
Water quality targeted rate reserveTargeted Rate collected to help fund the capital costs of investment in cleaning up Auckland's waterways.  Stormwater management
Natural environment targeted rate reserveTargeted Rate collected to help fund the capital and operating costs of investment to deliver enhanced environmental outcomes.  Environmental Services


The funding flows for these reserves are:


As at 30 June

Annual Plan


Closing balance



Closing balance


Cash flow hedge reserve(3,000)0000
Available-for-sale investment revaluation reserve12,00023,0000023,000
Share of associates' reserves451,000453,00000453,000
Asset revaluation reserve7,515,9148,899,41510,713,107019,612,522
Restricted equity reserves     
Statutory funds9,8349,2751,911(2,517)5,787
Trust and bequests1,5761,541516(308)1,749
Regional fuel tax001,500,000(1,500,000)0
Other restricted equity22,18552,33061,819(102,333)11,816
Total restricted equity33,59563,1461,564,246(1,605,158)19,352
Targeted rates reserves     
Central City targeted rate reserve24,25124,815244,301(224,634)44,481
Glorit Flood Gate Restoration targeted rate reserve(36)(36)3600
Riverhaven Drive targeted rate reserve(805)(615)5240(91)
Jackson Crescent wastewater targeted rate reserve(3)(3)300
Point Wells wastewater targeted rate reserve(79)(79)7900
Harbourview Orangihina Park targeted rate reserve1,4621,35749701,854
Open space/ Volcanic cones1,0611,3740(1,374)0
Water quality targeted rate reserve00452,404(452,404)0
Natural environment targeted rate reserve00141,529(141,529)0
Total targeted rates reserves25,85129,709840,432(819,941)50,200
Total reserves8,035,3609,468,27013,117,785(2,425,099)20,158,074
Note 5: Auckland Council (Parent) financial statements
Prospective statement of comprehensive revenue and expenditure

Auckland Council parent


Financial year ending 30 June

Annual Plan 2017/18LTP 2018/19LTP 2019/20LTP 2020/21LTP 2021/22LTP 2022/23LTP 2023/24LTP 2024/25LTP 2025/26LTP 2026/27LTP 2027/28
Fees and user charges267,315276,634280,863306,332312,189318,011323,817330,813338,184345,086352,126
Grants and subsidies249,40970,16728,68415,74815,91316,08116,34816,51716,78716,96017,233
Development and financial contributions214,359204,492288,657306,698297,514301,301301,301301,301301,301295,771293,223
Other revenue164,436239,228239,494247,865267,821276,332280,836286,388291,493293,640298,182
Vested assets502,44584,48668,86692,89474,63575,36977,24077,32496,42197,53998,681
Finance revenue108,545132,891143,083155,381166,592176,764187,454201,384209,642210,750211,408
Total revenue3,228,1552,814,0032,936,9343,100,0563,212,5703,348,6073,483,2533,626,0843,789,3413,923,8724,069,307
Employee benefits525,978535,778548,349560,979572,375584,335598,331609,956622,695636,004648,889
Depreciation and amortisation263,831276,388283,761294,548304,789318,396330,503348,241368,035393,683422,137
Grants, contributions and sponsorship1,260,0491,045,7991,025,3121,003,516999,7131,021,0431,183,0371,183,1271,132,3621,286,1631,277,440
Other operating expenses481,148529,858535,096557,661564,696595,562621,844644,798671,683698,411724,012
Finance costs425,713456,317495,350540,326570,107585,479602,416613,518630,112645,729655,046
Total expenses2,956,7192,844,1402,887,8682,957,0303,011,6803,104,8153,336,1313,399,6403,424,8873,659,9903,727,524
Operating surplus/ (deficit)271,436(30,137)49,066143,024200,890243,792147,122226,444364,454263,882341,783
Share of surplus in associates and joint ventures2,54165,38866,20667,68670,09168,27767,19469,13271,32273,53775,860
Operating surplus/ (deficit) before income tax273,97735,251115,272210,710270,981312,069214,316295,576435,776337,419417,643
Income tax expense00000000000
Surplus/ (deficit) after income tax273,97735,251115,272210,710270,981312,069214,316295,576435,776337,419417,643
Other comprehensive revenue and expenditure           
Net gain on revaluation of property, plant and equipment491,138001,579,812001,347,362001,462,0310
Total other comprehensive revenue/ (expenditure)491,138001,579,812001,347,362001,462,0310
Total comprehensive revenue/ (expenditure)765,11535,251115,2721,790,522270,981312,0691,561,678295,576435,7761,799,450417,643
Prospective statement of movement in equity

Auckland Council parent


Financial year ending 30 June


Plan 2017/18







LTP 2021/22LTP 2022/23LTP 2023/24LTP 2024/25LTP 2025/26LTP 2026/27LTP 2027/28
Contributed equity           
As at 1 July26,569,09226,569,09226,569,09226,569,09226,569,09226,569,09226,569,09226,569,09226,569,09226,569,09226,569,092
Surplus after income tax00000000000
Other comprehensive revenue00000000000
Total comprehensive revenue00000000000
Transfer from/(to) reserves00000000000
Balance as at 30 June26,569,09226,569,09226,569,09226,569,09226,569,09226,569,09226,569,09226,569,09226,569,09226,569,09226,569,092
Accumulated funds           
As at 1 July(878,258)(499,506)(478,232)(329,366)(102,117)154,465467,657689,2931,003,2911,457,3541,772,863
Surplus after income tax273,97735,251115,272210,710270,981312,069214,316295,576435,776337,419417,645
Other comprehensive revenue00000000000
Total comprehensive revenue273,97735,251115,272210,710270,981312,069214,316295,576435,776337,419417,643
Transfer from/(to) reserves9,224(13,977)33,59416,539(14,399)1,1237,32018,42218,287(21,910)(21,697)
Balance as at 30 June(595,057)(478,232)(329,366)(102,117)154,465467,657689,2931,003,2911,457,3541,772,8632,168,809
As at 1 July3,199,5253,705,1043,719,0813,685,4875,248,7605,263,1595,262,0366,602,0786,583,6566,565,3698,049,310
Surplus after income tax00000000000
Other comprehensive revenue491,138001,579,812001,347,362001,462,0310
Total comprehensive revenue491,138001,579,812001,347,362001,462,0310
Transfer from/(to) reserves(9,224)13,977(33,594)(16,539)14,399(1,123)(7,320)(18,422)(18,287)21,91021,697
Balance as at 30 June3,681,4393,719,0813,685,4875,248,7605,263,1595,262,0366,602,0786,583,6566,565,3698,049,3108,071,007
Total equity           
As at 1 July28,890,35929,774,69029,809,94129,925,21331,715,73531,986,71632,298,78533,860,46334,156,03934,591,81536,391,267
Surplus after income tax273,97735,251115,272210,710270,981312,069214,316295,576435,776337,419417,643
Other comprehensive revenue491,138001,579,812001,347,362001,462,0310
Total comprehensive revenue765,11535,251115,2721,790,522270,981312,0691,561,678295,576435,7761,799,450417,643
Transfer to/ (from) reserves00000000000
Balance as at 30 June29,655,47429,809,94129,925,21331,715,73531,986,71632,298,78533,860,46334,156,03934,591,81536,391,26536,808,908
Prospective statement of financial position

Auckland Council parent


As at 30 June

Annual Plan 2017/18LTP 2018/19LTP 2019/20LTP 2020/21LTP 2021/22



LTP 2023/24LTP 2024/25LTP 2025/26LTP 2026/27LTP 2027/28
Current assets           
Cash and cash equivalents215,000180,000180,000180,000180,000180,000180,000180,000180,000180,000180,000
Receivables and prepayments201,160320,098326,012340,565357,793374,030390,367407,604425,789444,233463,794
Other financial assets185,790135,850135,850135,850135,850135,850135,850135,850135,850135,850135,850
Non-current assets held for sale114,504104,00071,000174,00065,00043,00040,00057,00064,00039,00039,000
Total current assets724,454751,392724,535842,321750,787745,267758,852793,342818,785812,492832,321
Non-current assets           
Receivables and prepayments17,7824,5894,6744,8835,1305,3635,5975,8446,1056,3696,649
Derivative financial instruments255,000173,434173,434173,434173,434173,434173,434173,434173,434173,434173,434
Other financial assets1,627,4192,036,1382,184,9292,384,4822,586,3662,792,4423,038,2703,328,8113,442,5143,395,0053,384,010
Property, plant and equipment14,236,82815,321,41015,650,79017,381,70117,637,40618,046,65219,791,91520,214,91621,057,04423,064,68123,536,391
Intangible assets226,220277,246257,894235,130225,134215,812209,989210,542213,742208,732187,005
Investment property121,000162,000162,000162,000162,000162,000162,000162,000162,000162,000162,000
Investments in subsidiaries21,379,00021,264,08321,264,08321,264,08321,264,08321,264,08321,264,08321,264,08321,264,08321,264,08321,264,083
Investments in associates and joint ventures452,940552,159811,5051,177,8311,521,3621,830,9401,908,4441,780,3411,783,9291,787,7751,791,927
Other non-current assets2,0003,0003,0003,0003,0003,0003,0003,0003,0003,0003,000
Total non-current assets38,318,18939,794,05940,512,30942,786,54443,577,91544,493,72646,556,73247,142,97148,105,85150,065,07950,508,499
Total assets39,042,64340,545,45141,236,84443,628,86544,328,70245,238,99347,315,58447,936,31348,924,63650,877,57151,340,820



As at 30 June

Annual Plan 2017/18LTP 2018/19LTP 2019/20LTP 2020/21LTP 2021/22



LTP 2023/24LTP 2024/25LTP 2025/26LTP 2026/27LTP 2027/28
Current liabilities           
Payables and accruals625,718676,332651,193615,700618,727669,792727,808743,745878,128827,737808,379
Employee entitlements57,59657,92259,28160,64661,87863,17164,68465,94167,31868,75770,150
Derivative financial instruments2,0002,0002,0002,0002,0002,0002,0002,0002,0002,0002,000
Total current liabilities1,772,3611,906,4221,950,7061,989,6722,043,9202,163,4832,279,1612,334,0962,520,9582,497,2792,487,159
Non-current liabilities           
Payables and accruals24,20027,13126,12124,69724,81826,86629,19329,83235,22333,20032,426
Employee entitlements2,1732,2282,2802,3332,3802,4302,4882,5362,5892,6442,698
Derivative financial instruments901,000861,517861,517861,517861,517861,517861,517861,517861,517861,517861,517
Total non-current liabilities7,928,7368,829,0889,360,9259,923,45810,298,06610,776,72511,175,96011,446,17811,811,86311,989,02712,044,753
Total liabilities9,701,09710,735,51011,311,63111,913,13012,341,98612,940,20813,455,12113,780,27414,332,82114,486,30614,531,912
Net assets29,341,54629,809,94129,925,21331,715,73531,986,71632,298,78533,860,46334,156,03934,591,81536,391,26536,808,908
Contributed equity26,569,09226,569,09226,569,09226,569,09226,569,09226,569,09226,569,09226,569,09226,569,09226,569,09226,569,092
Accumulated funds(563,317)(478,232)(329,366)(102,117)154,465467,657689,2931,003,2911,457,3541,772,8632,168,809
Total ratepayers equity29,341,54629,809,94129,925,21331,715,73531,986,71632,298,78533,860,46334,156,03934,591,81536,391,26536,808,908
Minority interests00000000000
Total equity29,341,54629,809,94129,925,21331,715,73531,986,71632,298,78533,860,46334,156,03934,591,81536,391,26536,808,908
Prospective statement of cash flows

Auckland Council parent


Financial year ending 30 June

Annual Plan 2017/18LTP 2018/19LTP 2019/20LTP 2020/21LTP 2021/22LTP 2022/23LTP 2023/24LTP 2024/25LTP 2025/26LTP 2026/27LTP 2027/28
Cash flows from operating activities           
Receipts from rates revenue1,721,6461,806,1051,887,2871,975,1382,077,9062,184,7492,296,2572,412,3572,535,5132,703,4942,839,013
Receipts from customers and other services764,912837,499877,194915,946944,662970,262986,0411,002,2221,016,5311,023,0711,034,967
Interest received108,545132,891143,083155,381166,592176,764187,454201,384209,642210,750211,408
Dividend received94,22913,71315,4656,396(8,241)(12,808)(16,318)(18,854)(19,478)(20,631)(22,336)
Payments to suppliers and employees(2,239,624)(2,134,344)(2,176,659)(2,178,331)(2,131,365)(2,227,226)(2,373,516)(2,456,619)(2,430,474)(2,635,984)(2,673,450)
Interest paid(418,118)(450,629)(491,950)(537,868)(568,443)(584,628)(602,099)(613,324)(629,962)(645,579)(654,896)
Net cash from operating activities31,590205,235254,420336,662481,111507,113477,819527,166681,772635,121734,706
Cash flows from investing activities           
Proceeds from sale of other financial assets236,4010000000000
Acquisition of other financial assets(6,497)(4,011)(3,168)(2,960)(2,084)(2,362)(1,922)(1,070)(1,890)(1,117)(716)
Advances of loans to related parties(81,583)(149,713)(179,735)(254,582)(238,300)(138,182)(222,799)(263,433)24,767(30,328)(25,210)
Sale of property, plant and equipment, investment property and intangible assets114,505177,000104,00071,000174,00065,00043,00040,00057,00064,00039,000
Purchase of property, plant and equipment, investment property and intangible assets(511,382)(617,070)(595,923)(503,990)(540,863)(685,951)(685,341)(751,471)(1,180,942)(875,739)(812,440)
Proceeds from community loan repayments2,3502,3883,8404,7765,4515,3475,2304,9384,7744,4244,517
Investment in associates and joint ventures0(234,700)(254,100)(359,100)(333,900)(303,500)(74,300)131,400000
Advances to external parties(8,876)(49,962)(10,162)(6,000)(7,000)(7,000)(7,000)(7,000)(7,000)(7,000)(7,000)
Net cash from investing activities(255,082)(876,068)(935,248)(1,050,856)(942,696)(1,066,648)(943,132)(846,636)(1,103,291)(845,760)(801,849)
Cash flows from financing activities           
Proceeds from borrowings1,298,1891,544,1921,790,1901,909,7211,747,5001,903,8671,880,4581,793,5061,935,9871,778,4511,661,614
Repayment of borrowings(1,074,697)(1,046,359)(1,109,362)(1,195,527)(1,285,915)(1,344,332)(1,415,145)(1,474,036)(1,514,468)(1,567,812)(1,594,471)
Net cash from financing activities223,492497,833680,828714,194461,585559,535465,313319,470421,519210,63967,143
Net increase/(decrease) in cash and cash equivalents and bank overdraft0(173,000)000000000
Cash and cash equivalents and bank overdraft at beginning of the year215,000353,000180,000180,000180,000180,000180,000180,000180,000180,000180,000
Cash and cash equivalents and bank overdrafts at end of the year215,000180,000180,000180,000180,000180,000180,000180,000180,000180,000180,000
Note 6: Group depreciation and amortisation by group of activity


Financial year ending 30 June

Annual Plan 2017/18LTP 2018/19LTP 2019/20LTP 2020/21LTP 2021/22LTP 2022/23LTP 2023/24LTP 2024/25LTP 2025/26LTP 2026/27LTP 2027/28
Roads and Footpaths256,091251,519269,769290,847314,103348,170373,449396,006427,320459,098484,209
Public Transport and travel demand management106,884102,386102,974102,304103,925105,098109,955116,021125,830137,173147,320
Water supply99,011108,393109,493110,743123,820125,050126,271139,798142,567145,802159,723
Local Council Services3,5858,34914,77522,31030,03637,81345,36853,25462,62573,92286,295
Regionally delivered council services229,656232,641242,028241,509239,821242,240239,744244,095252,268263,171275,586
Council controlled services40,90745,66850,59756,53260,58364,49268,54271,61773,63873,71875,650

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2.3 Prospective consolidated funding impact statement

Auckland Council group consolidated


Financial year ending 30 June

Annual  Plan


LTP 2018/19LTP 2019/20LTP 2020/21LTP 2021/22



LTP 2023/24LTP 2024/25LTP 2025/26LTP 2026/27LTP 2027/28
Sources of operating funding:           
General rates, UAGCs, rates penalties1,517,0671,588,3881,660,1531,752,2131,848,7341,949,8452,055,7382,167,5222,285,5882,409,2202,538,303
Targeted rates197,643212,615223,859220,129226,636231,872236,987240,626245,167249,632254,647
Subsidies and grants for operating purposes273,705286,973297,307305,689313,599321,216329,329336,149342,569348,891356,218
Fees and charges1,255,6791,347,9891,424,2811,529,5571,593,9041,656,9401,725,0211,788,5391,854,3871,926,7092,001,496
Interest and dividends from investments67,97670,66170,96170,93070,82572,39174,11875,94677,91879,88981,909
Local authorities fuel tax, fines, infringement fees and other receipts289,074430,324442,794439,510456,352471,395460,157477,455456,585465,384471,503
Total operating funding3,601,1443,936,9504,119,3554,318,0284,510,0504,703,6594,881,3505,086,2375,262,2145,479,7255,704,076
Applications of operating funding:           
Payment to staff and suppliers2,418,6992,587,6232,655,4982,744,2722,817,4662,910,7333,006,3093,093,4483,181,3783,275,9353,370,765
Finance costs454,998467,214513,661562,389594,238611,472630,593643,051660,264675,602685,461
Other operating funding applications7,7630000000000
Total applications of operating funding2,881,4603,054,8373,169,1593,306,6613,411,7043,522,2053,636,9023,736,4993,841,6423,951,5374,056,226
Surplus (deficit) of operating funding719,684882,113950,1961,011,3671,098,3461,181,4541,244,4481,349,7381,420,5721,528,1881,647,850
Sources of capital funding:           
Subsidies and grants for capital expenditure403,083411,868486,707475,320471,167430,841552,107561,020511,655580,785631,385
Development and financial contributions214,358204,491288,657306,696297,514301,303301,303301,303301,303295,771293,224
Increase (decrease) in debt354,308591,532703,627712,291484,954542,829450,799304,585407,301196,46353,551
Gross proceeds from sale of assets114,505177,000104,00071,000174,00065,00043,00040,00057,00064,00039,000
Lump sum contributions00000000000
Other dedicated capital funding00000000000
Total sources of capital funding1,086,2541,384,8911,582,9911,565,3071,427,6351,339,9731,347,2091,206,9081,277,2591,137,0191,017,160
Application of capital funding:           
Capital expenditure:           
- to meet additional demand797,653980,090827,105774,944806,379678,595648,054690,428543,127616,381634,791
- to improve the level of service609,111539,727759,619738,929719,212845,475959,753992,9611,191,2351,023,308966,177
- to replace existing assets609,952658,203581,334600,823623,084688,867963,7991,012,417942,479991,5401,049,458
Increase (decrease) in reserves65,32932,31981,36978,65538,82016,62012,63112,39310,3256,3853,001
Increase (decrease) in investments(276,107)56,665283,760383,323338,486291,8707,420(151,553)10,66527,59311,583
Total applications of capital funding1,805,9382,267,0042,533,1872,576,6742,525,9812,521,4272,591,6572,556,6462,697,8312,665,2072,665,010
Surplus (deficit) of capital funding(719,684)(882,113)(950,196)(1,011,367)(1,098,346)(1,181,454)(1,244,448)(1,349,738)(1,420,572)(1,528,188)(1,647,850)
Funding balance00000000000

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4.0 Supplementary information

How the organisation is structured

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

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

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

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

The Governing Body

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

The Mayor

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

Mayor and councillors' contact details

Hon Phil Goff, CNZM, MAYOR

Ph: (09) 301 0101

Chair - Governing Body
Chair - Appointments, Performance Review, & Value For Money Committee

Bill Cashmore, DEPUTY MAYOR [Franklin]

Ph: (021) 283 3355

Chair - Strategic Procurement Committee
Deputy Chair - Governing Body
Deputy Chair- Audit & Risk Committee
Deputy Chair- Regulatory Committee

Wayne Walker [Albany]

Ph: (021) 882 861


John Watson [Albany]

Ph: (021) 287 5999

Deputy Chair - Civil Defence Emergency Management Group Committee

Dr Cathy Casey


Ph: (027) 474 4231

Chair - Community Development & Safety Committee

Hon Christine Fletcher, QSO


Ph: (027) 276 0013

Deputy Chair - Appointments, Performance Review, & Value For Money Committee

Josephine Bartley [Maungakiekie-Tāmaki]

Ph: (021) 287 5599

Sharon Stewart QSM [Howick]

Ph: (021) 282 1144

Chair - Civil Defence Emergency Management Group Committee

Fa'anana Efeso Collins [Manukau]

Ph: (021) 242 6585

Deputy Chair - Community Development and Safety Committee

Alf Filipaina [Manukau]

Ph: (021) 280 0999

Deputy Chair - Environment & Community Committee

Sir John Walker, KNZM, CBE


Daniel Newman, JP


Ph (021) 518 796

Chris Darby [North Shore]

Ph: (021) 284 2888

Chair - Planning Committee

Ross Clow [Whau]

Ph: (021) 808 214

Chair - Finance & Performance Committee

Deputy Chair - Strategic Procurement Committee


Richard Hills [North Shore]

Ph: (021) 286 4411

Deputy Chair - Planning Committee

Desley Simpson, JP [Ōrākei]

Ph: (021) 971 786

Deputy Chair - Finance and Performance Committee

Greg Sayers [Rodney]

Ph: (021) 285 9900


Linda Cooper, JP [Waitākere]

Ph: (021) 629 533

Chair - Regulatory Committee

Penny Hulse [Waitākere]

Ph: (021) 273 4663

Chair - Environment & Community Committee

Mike Lee [Waitematā and Gulf]

Ph: (027) 494 3198


Local boards

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

Local boards:

  • Make decisions on local matters, including setting the standards of services delivered locally
  • Identify the views of local people on regional strategies, policies, plans and bylaws and communicate these to the governing body
  • Develop and implement local board plans (every three years)
  • Develop, monitor and report on local board agreements (every year)
  • Provide local leadership and develop relationships with the governing body, the community and community organisations in the local area
  • Identify and develop bylaws for the local board area and propose them to the governing body
  • Monitoring and reporting on the implementation of local board agreements
  • Any additional responsibilities delegated by the governing body, such as decisions within regional bylaws.

Each year, local boards and the governing body agree individual local board agreements, which set out the local activities, services and levels of service that will be provided over the coming year. The agreements for 2017/2018 are included in this annual budget and can be found in Volume 2 of this document.

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

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

Council-controlled organisations

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

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

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

Independent Māori Statutory Board (IMSB)

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

The board:

  • will identify and prioritise issues that are significant to Māori to help guide the council's work programme
  • advise the council about issues that affect Māori in Auckland
  • work with the council to help it meet its statutory obligations to Māori in Auckland
  • work with the council on the design and execution of documents and processes.

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

Independent Māori Statutory Board Members

  • Mr David Taipari, Chairperson
  • Mr Glenn Wilcox, Deputy Chairperson
  • Mr Renata Blair
  • Mr James Brown
  • Hon. Tau Henare
  • Ms Liane Ngāmane
  • Mr Terrence (Muka) Hohneck
  • Mr Tony Kake
  • Mr Denis Kirkwood.

For more details on the IMSB, please visit

Advisory panels

As one of council's engagement mechanisms with diverse communities, the advisory panels provide advice to the governing body and council staff within the remit of the Auckland Plan on the following areas:

  • Auckland Council's regional policies, plans and strategies
  • regional and strategic matters including those that Council-Controlled Organisations deal with
  • any matter of particular interest or concern to diverse communities.

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

Demographic advisory panels:

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

Sector panels:

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

For more detail on Auckland Council's advisory panels, please visit our website

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

Co-governance arrangements

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

The Ngāti Whātua Ōrākei Reserves Board is established under the Ōrākei Act 1991 and currently operates under the Ngāti Whātua Ōrākei Claims Settlement Act 2012 and has three council appointees.

  1. Te Poari o Kaipātiki ki Kaipara (officially the Parakai Recreation Reserve Board) is established under the Ngāti Whātua o Kaipara Claims Settlement Act 2013 and has three council appointees.
  2. The Tūpuna Maunga o Tāmaki Makaurau Authority (or Maunga Authority) is established under the Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014 and has six council appointees.

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

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How to contact the council

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

Customer service centres

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

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

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

Service centrePhysical address
Albany30 Kell Drive, Albany
BirkenheadNell Fisher Reserve - Hinemoa Street, Birkenhead
Bledisloe House24 Wellesley Street, Auckland Central
Browns BayCorner of Bute and Glen Roads, Browns Bay
Devonport3 Victoria Road, Devonport
Glen Eden39 Glenmall Place, Glen Eden
Glenfield90 Bentley Avenue, Glenfield
Graham Street35 Graham Street, Auckland
Great Barrier IslandHector Sanderson Road, Claris
Helensville49 Commercial Road, Helensville
Henderson6 Henderson Valley Road, Henderson Waitākere
Huapai296 Main Road (SH16) Huapai
ManukauGround Floor, Kotuku House, 4 Osterley Way, Manukau City Centre
New Lynn31 Totara Avenue, New Lynn
Ōrewa50 Centreway Road, Ōrewa
Papakura35 Coles Crescent, Papakura
Pukekohe82 Manukau Road, Pukekohe
Takapuna1 The Strand, Takapuna
Waiheke Island10 Belgium Street, Ostend
WaiukuCorner of King Street and Constable Road, Waiuku
Warkworth1 Baxter Street, Warkworth
Whangaparāoa9 Main Street, Whangaparāoa

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4.3 Glossary of terms

ActivityThe goods or services the council provides
Annual Plan (Also known as Annual Budget)The plan that sets out what the council will be working to achieve in a financial year, how it will spend its money, the level of service to be provided, and the level of rates and other revenue required to fund that spending
AssetAn item of value, usually of a physical nature, that has a useful life of more than 12 months and has future economic benefits over a period of time. Infrastructural assets provide the basic facilities, services and installations needed for a community or society to function, such as stormwater drainage pipes. Non-infrastructural assets are the organisation's other assets that provide either administrative or operational functions, such as computer software
ATAuckland Transport
ATAPThe Auckland Transport Alignment Project, a collaborative project between Auckland Council and Central Government to align strategic transport priorities for the Auckland region.
ATEEDAuckland Tourism, Events and Economic Development
Auckland Council or the councilThe local government of Auckland established on 1 November 2010. The council is made up of the governing body, 21 local boards, and the council organisation (operational staff)
BIDBusiness improvement district
CentresLocalities identified as urban centres which include the city centre and fringe, metropolitan centres, town centres and local centres. Centres are typically higher density, compact mixed-use environments with high quality public transport links and provide a wide range of community, recreational, social and other activities
CRLThe City Rail Link project
CRL LimitedThe separate legal entity that will deliver the CRL
COMETCOMET Auckland (Community and Education Trust)
Commercial activitiesRetail, information and communication, finance and insurance, and other service sectors. These sectors typically can afford relatively higher land prices/rents, and locate well in town centres
Council-controlled organisation (CCO)A company or other entity under the control of local authorities through their shareholding of 50 per cent or more, voting rights of 50 per cent or more, or right to appoint 50 per cent or more of the directors. Some organisations may meet this definition but are exempted as council-controlled organisations
DepreciationThe charge representing consumption or use of an asset, assessed by spreading the asset's value over its estimated economic life. Depreciation includes amortisation of intangible assets unless otherwise stated
FULSSThe Future Urban Land Supply Strategy
Development contributionsContributions from developers, collected to help fund new infrastructure required by growth, as set out in the Local Government Act 2002. This can be a financial contribution or provision of services or an asset of the same value
Governing BodyThe governing body is made up of the mayor and 20 councillors. It shares its responsibility for decision-making with the local boards. The governing body focuses on the big picture and on Auckland-wide strategic decisions. Because each ward may vary in population, some wards have more than one councillor
Grants and subsidiesRevenue received from an external agency to help fund an activity or service that the council provides
Gross operating expenditureTotal without deductions of depreciation and finance costs
HapūKinship group, clan, tribe, sub tribe - section of a large kinship group
HouseholdOne or more people usually resident in the same dwelling, who share living facilities.  A household can contain one or more families or no families at all. A household that does not contain a family nucleus could contain unrelated people, related people, or could simply be a person living alone
InfrastructureThe fixed, long-lived structures that facilitate the production of goods and services and underpin many aspects of quality of life. Infrastructure refers to physical networks, principally transport, water, energy, and communications
IwiGroups of whānau or hapū related through a common ancestor
KaitiakiGuardians of the environment
KaitiakitangaGuardianship including stewardship; processes and practices for looking after the environment, guardianship that is rooted in tradition
Local boardsThere are 21 local boards which share responsibility for decision-making with the governing body. They represent their local communities and make decisions on local issues, activities and facilities
Local Board AgreementAn annual agreement between the governing body and each local board, setting out how the council will, in that year, reflect the priorities and preferences in its local board plan for the year in respect of various things, including the local activities to be provided in the local board area
Local Board PlanA plan that reflects the priorities and preferences of the communities within the local board area in respect of the level and nature of local activities to be provided by the council over the next three years
Local Government Act 2002 (LGA 2002)Legislation that defines the powers and responsibilities of territorial local authorities such as Auckland Council
Local Government (Rating) Act 2002 (LGRA)Defines how territorial local authorities such as Auckland Council can set, assess and collect rates
Long-term Plan or the LTP (Also known as the 10-year budget)This document sets out the council's vision, activities, projects, policies, and budgets for a 10-year period. Also commonly referred to as the LTP, the 10-year budget
Mana whenuaIwi, the people of the land who have mana or customary authority. Their historical, cultural and genealogical heritage are attached to the land and sea
MataawakaMāori who live in Auckland but do not whakapapa to mana whenua
Mātauranga MāoriMāori wisdom. In a traditional context, this means the knowledge, comprehension or understanding of everything visible or invisible that exists across the universe
MaungaMountain, mount, peak; Auckland's volcanic cones
MauriMauri is the pure state of an object or substance. Sometimes referred to as the 'life force', mauri is contingent upon all things being in balance or in harmony
New Zealand Transport Agency (NZTA)Plans and delivers sustainable transport networks across New Zealand, In Auckland and has responsibility for maintaining the state highway network roads
One Local InitiativeAs part of the 10-year Budget, each of our 21 Local Boards has identified a project that they believe to be the most important for their local community
Fortified Māori settlements, villages and towns
PapakāingaA location including meeting facilities, homes, vegetable gardens, a cemetery and other things required to sustain a whānau, hapū or iwi. Known previously as unfortified Māori settlements, villages and towns
Papakāinga housingHousing development within a papakāinga framework
PenlinkPenlink is a proposed alternative route between the Whangaparāoa Peninsula and State Highway 1 (SH1) at Redvale
RangatahiYounger generation, youth
RangatiratangaChiefly authority. A state of being. It is expressed in who we are, and how we do things; ability to make decisions for the benefit of their people and the community in general; confers not only status but also responsibility to ensure that the natural world and its resources are maintained into the future; recognises iwi and hapū right to manage resources or kaitiakitanga over the ancestral lands and waters. The Māori version of article 2 of the Treaty uses the word 'rangatiratanga' in promising to uphold the authority that tribes had always had over their lands and taonga
RatesA charge against the property to help fund services and assets that the council provides
RūnangaAssembly or council in an iwi context
RLTPThe Regional Land Transport Plan provides the blue print for Transport in Auckland over the next decade.
RFTRegional Fuel Tax
RPMPRegional Pest Management Plan
TaongaA treasured item, which may be tangible or intangible
Tāmaki MakaurauThe Māori name for Auckland
Tangata WhenuaIndigenous peoples of the land
Targeted ratesA targeted rate is a rate set to fund activities where greater transparency in funding is desired or where the council considers the cost should be met by particular groups of ratepayers, as they will be the prime beneficiaries of the activity
Te Tiriti o Waitangi / The Treaty of WaitangiThe written principles on which the British and Māori agreed to found a nation state and build a government
Te Toa TakitiniA top-down council group approach to better enable the council group to identify, invest, and track progress on activities that deliver on the Auckland Plan, transform the organisation and deliver Aucklanders great value for money. It derives from the whakataukī (proverb): Ehara taku toa i te toa takitahi, engari he toa takitini, Success is not determined by me alone, it is the sum of the contribution of many
The Auckland Plan 2050Our long-term spatial plan for Auckland looks ahead to 2050.
It considers how we will address our key challenges of high population growth, shared prosperity, and environmental degradation
TikangaCustomary lore and practice
UAGCUniform Annual General Charge - a fixed rate set uniformly across all properties regardless of property value or category, applied to every separately used or inhabited part of a rating unit (e.g. a dwelling on a section, a shop in a mall, or a granny flat)
Unitary PlanThe Auckland Unitary Plan is the planning rule book that sets out what can be built and where. It is essential for protecting what makes our city special, while unlocking housing and economic growth and strengthening our community.
WakaCanoe, vehicle, conveyance
WasteAny matter, whether liquid, gas or solid, which is discharged, unwanted or discarded by the current generator or owner as having little or no economic value, and which may include materials that can be reused, recycled or recovered
WatercareWatercare Services Limited
WMMPWaste Management and Minimisation Plan, the first Auckland-wide plan, aiming at an aspirational goal of Zero Waste, helping people to minimise their waste and create economic opportunities in doing so

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[1] The average overall impact of general rate changes, these targeted rates and the expiration of the Interim Transport Levy for residential ratepayers in 2018/2019 is also 2.5 per cent. Further information on average rates increases is included in Part 1.4 Financial Strategy in Volume 2 of this document.

[2] There is no minority interest in the group. Total equity represents ratepayer equity.

[3] On 31 May 2018 the council resolved to disestablish council-controlled organisation Auckland Council Investments Limited (ACIL) and to transfer all of its assets, liabilities and obligations to Auckland Council on 1 July 2018.